##### Table of Contents



UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
 Washington, D.C. 20549
 
 FORM
20-F
  o
    
    Registration Statement pursuant to Section 12(b) or (g) of the Securities Exchange Act of 1934
 or
 þ
    
    Annual Report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
 for the fiscal year ended December 31, 2010
 or
 o
    
    Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
 for the transition period from  to
 or
 o
    
    Shell Company Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
 Date of event requiring this Shell Company Report
 Commission File Number 000-30852
 
 GRUPO FINANCIERO GALICIA S.A.
  GALICIA FINANCIAL GROUP
  REPUBLIC OF ARGENTINA
 Grupo Financiero Galicia S.A.
Tte. Gral. Juan D. Perón 456
C1038 AAJ-Buenos Aires, Argentina
 Pedro Richards, Chief Executive Officer
Tel: 54 11 4 343 7528 / Fax: 54 11 4 331 9183, prichards@gfgsa.com
Perón 456, 2° Piso C1038AAJ Buenos Aires ARGENTINA
 Securities registered or to be registered pursuant to Section 12(b) of the Act:
  Name of each exchange on which registered
  Title of each class
  Securities registered or to be registered pursuant to Section 12(g) of the Act:
 Securities for which there is a reporting obligation pursuant to Section 15(d) of the Act:
  Class A Ordinary Shares, Ps.1.00 par value
    
    
    281,221,650Class B Ordinary Shares, Ps.1.00 par value
    
    
    960,185,367
 o þ
 o þ
 þ o
 þ o
  Large accelerated filer o
    
    Accelerated filer þ
    
    Non-accelerated filer o
  U.S. GAAP o
    
    International Financial Reporting Standards
    
    Other þAs issued by the International Accounting Standards Board o
 o þ
 o þ




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##### Table of Contents



TABLE OF CONTENTS
 PageItem 1. Identity of Directors, Senior Management and Advisers
    
    
    4Item 2. Offer Statistics and Expected Timetable
    
    
    4Item 3. Key Information
    
    
    4Item 3.A. Selected Financial Data
    
    
    4Exchange Rate Information
    
    
    7Item 3.B. Capitalization and Indebtedness
    
    
    8Item 3.C. Reasons for the Offer and Use of Proceeds
    
    
    8Item 3.D. Risk Factors
    
    
    8Item 4. Information on the Company
    
    
    20History and Development of the Company
    
    
    20Organizational Structure
    
    
    21History
    
    
    22Business
    
    
    29Competition
    
    
    36Sales and Marketing
    
    
    38Property
    
    
    40Capital Investments and Divestitures
    
    
    41Selected Statistical Information
    
    
    42Government Regulation
    
    
    73Argentine Banking Regulation
    
    
    78Credit Cards Regulation
    
    
    88Concealment and Laundering of Assets of a Criminal Origin
    
    
    88Item 4A. Unresolved Staff Comments
    
    
    90Item 5. Operating and Financial Review and Prospects
    
    
    90Item 5.A. Operating Results
    
    
    90Overview
    
    
    90The Argentine Economy
    
    
    91Inflation
    
    
    95Currency Composition of Our Balance Sheet
    
    
    95Results of Operations for the Fiscal Years Ended December 31, 2010, December 31, 2009 and December 31, 2008
    
    
    96U.S. GAAP and Argentine Banking GAAP Reconciliation
    
    
    110Results by Segments
    
    
    120Consolidated Assets
    
    
    126Exposure to the Argentine Public Sector
    
    
    127Securitization of Assets
    
    
    128Funding
    
    
    128Contractual Obligations
    
    
    133Off-Balance Sheet Arrangements
    
    
    134Critical Accounting Policies
    
    
    135U.S. GAAP  Critical Accounting Policies
    
    
    136Principal Trends
    
    
    141Item 5.B. Liquidity and Capital Resources
    
    
    142Liquidity  Holding Company on an Individual Basis
    
    
    142Consolidated Cash Flows
    
    
    144Banco Galicias Liquidity Management
    
    
    147Capital
    
    
    149Capital Expenditures
    
    
    149Item 6. Directors, Senior Management and Employees
    
    
    149Our Board of Directors
    
    
    149Our Audit Committee
    
    
    152Our Supervisory Committee
    
    
    152
  (i)




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TABLE OF CONTENTS
 PageCompensation of Our Directors
    
    
    153Management of Grupo Financiero Galicia
    
    
    154Board of Directors of Banco Galicia
    
    
    155Functions of the Board of Directors of Banco Galicia
    
    
    156Banco Galicias Executive Officers
    
    
    158Banco Galicias Supervisory Committee
    
    
    162Compensation of Banco Galicias Directors and Officers
    
    
    162Employees
    
    
    163Nasdaq Corporate Governance Standards
    
    
    163Share Ownership
    
    
    166Item 7. Major Shareholders and Related Party Transactions
    
    
    166Major Shareholders
    
    
    166Related Party Transactions
    
    
    167Item 8. Financial Information
    
    
    169Legal Proceedings
    
    
    169Dividend Policy and Dividends
    
    
    170Significant Changes
    
    
    172Item 9. The Offer and Listing
    
    
    173Shares and ADSs
    
    
    173Argentine Securities Market
    
    
    175Market Regulations
    
    
    176Item 10. Additional Information
    
    
    177Description of Our Bylaws
    
    
    177Exchange Controls
    
    
    184Taxation
    
    
    184Material Contracts
    
    
    189Documents on Display
    
    
    191Item 11. Quantitative and Qualitative Disclosures About Market Risk
    
    
    191General
    
    
    191Interest Rate Risk
    
    
    192Foreign Exchange Rate Risk
    
    
    195Currency Mismatches
    
    
    196Market Risk
    
    
    198Item 12. Description of Securities Other Than Equity Securities
    
    
    199Item 12.D. American Depositary Shares
    
    
    199Fees and Charges Applicable to ADS Holders
    
    
    199Fees and Direct and Indirect Payments Made by the Depositary to Us
    
    
    200Item 13. Defaults, Dividend Arrearages and Delinquencies
    
    
    201Item 14. Material Modifications to the Rights of Security Holders and Use of Proceeds
    
    
    201Item 15. Controls and Procedures
    
    
    201Item 16. [Reserved]
    
    
    202Item 16A. Audit Committee Financial Expert
    
    
    202Item 16B. Code of Ethics
    
    
    202Item 16C. Principal Accountants Fees and Services
    
    
    202Item 16D. Exemptions from the Listing Standards for Audit Committees
    
    
    203Item 16E. Purchases of Equity Securities by the Issuer and Affiliated Purchasers
    
    
    203Item 17. Financial Statements
    
    
    204Item 18. Financial Statements
    
    
    204Item 19. Exhibits
    
    
    204SIGNATURE
    
    
    206Exhibit 2.5Exhibit 2.6Exhibit 4.8Exhibit 4.9Exhibit 4.10Exhibit 11.2Exhibit 12.1Exhibit 12.2Exhibit 13.1Exhibit 13.2
   (ii)




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PRESENTATION OF FINANCIAL INFORMATION
  
    
    Grupo Financiero Galicia;
 
    
    Banco de Galicia y Buenos Aires S.A., our largest subsidiary, its wholly-owned
subsidiaries Banco Galicia Uruguay S.A. (in liquidation), (Galicia Uruguay) and Galicia
Cayman Limited (Galicia Cayman), and other subsidiaries and affiliated companies required
to be consolidated under Argentine Banking GAAP (collectively Banco Galicia except where
otherwise noted);
 
    
    Tarjetas Regionales S.A., a wholly owned subsidiary of Banco Galicia, and its operating
subsidiaries;
 
    
    Compañía Financiera Argentina S.A. (Compañía Financiera Argentina or CFA), Cobranzas
y Servicios S.A. and Procesadora Regional S.A. (collectively the CFA Group)
 
    
    Sudamericana Holding S.A., and its subsidiaries;
 
    
    Galicia Warrants S.A. (Galicia Warrants);
 
    
    Net Investment S.A. (Net Investment),
 
    
    Galval Agente de Valores S.A. (Galval); and
 
    
    GV Mandataria de Valores S.A. (GV Mandataria).




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FORWARD LOOKING STATEMENTS
  
    
    changes in Government regulations applicable to financial institutions, including
tax regulations and changes in or failures to comply with banking or other regulations;
 
    
    changes in general political, legal, social or other conditions in Argentina, Latin
America or abroad;
 
    
    fluctuations in the Argentine rate of inflation;
 
    
    changes in capital markets in general that may affect policies or attitudes toward
lending to Argentina or Argentine companies, including expected or unexpected
turbulence or volatility in domestic or international financial markets;
 
    
    changes in the macroeconomic situation at the regional, national or international
levels, and the influence of these changes on the microeconomic conditions of the
financial markets in Argentina;
 
    
    increased competition in the banking, financial services, credit card services,
insurance, asset management and related industries;
 
    
    changes in interest rates which may, among other things, adversely affect margins;
 
    
    a loss of market share by any of Banco Galicias main businesses;
 
    
    a change in the credit cycle and increased borrower defaults;
 
    
    Banco Galicias inability to sustain or improve its performance;
 
    
    Banco Galicias inability to obtain additional debt or equity financing on
attractive conditions or at all, which may limit its ability to fund existing
operations and to finance new activities;
 
    
    technological changes and changes in Banco Galicias ability to implement new
technologies;
 
    
    changes in the saving and consumption habits of its customers and other structural
changes in the general demand for financial products, such as those offered by Banco
Galicia;
 
    
    possible financial difficulties of the Government;
 
    
    volatility of the Peso and the exchange rates between the Peso and foreign
currencies; and
 
    
    other factors discussed under Item 3. Key Information-Item 3.D. Risk Factors in
this annual report.
  -2-




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PART I
 
 Item 1.
    
    Identity of Directors, Senior Management and Advisers
  
 Item 2.
    
    Offer Statistics and Expected Timetable
  
 Item 3.
    
    Key Information
 
 Item 3.A.
    
    Selected Financial Data
      -4-




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Fiscal Year Ended December 31,2010
    
    
    2010
    
    
    2009
    
    
    2008
    
    
    2007
    
    
    2006(in millionsof USDollars,except asnoted)(1)Unaudited
    
    
    (in millions of Pesos, except as noted)(1)Consolidated Income Statement in Accordance with
Argentine Banking GAAPFinancial Income
    
    
    909.5
    
    
    
    3,616.1
    
    
    
    3,005.6
    
    
    
    2,559.3
    
    
    
    1,997.9
    
    
    
    2,229.8Financial Expenses
    
    
    355.3
    
    
    
    1,412.7
    
    
    
    1,460.5
    
    
    
    1,421.0
    
    
    
    1,246.7
    
    
    
    1,851.6Net Financial Income (2)
    
    
    554.2
    
    
    
    2,203.4
    
    
    
    1,545.1
    
    
    
    1,138.3
    
    
    
    751.2
    
    
    
    378.2Provision for Losses on Loans and Other Receivables
    
    
    138.7
    
    
    
    551.5
    
    
    
    639.5
    
    
    
    395.4
    
    
    
    255.5
    
    
    
    110.9Income before Taxes
    
    
    167.8
    
    
    
    667.1
    
    
    
    385.3
    
    
    
    250.8
    
    
    
    117.5
    
    
    
    75.3Income Tax
    
    
    (65.0
    )
    
    
    (258.2
    )
    
    
    (156.0
    )
    
    
    (74.0
    )
    
    
    (71.5
    )
    
    
    (94.2
    )Net Income / (Loss)
    
    
    102.8
    
    
    
    408.9
    
    
    
    229.3
    
    
    
    176.8
    
    
    
    46.0
    
    
    
    (18.9
    )Earnings / (Loss) per Share (in Pesos)
    
    
    0.083
    
    
    
    0.329
    
    
    
    0.185
    
    
    
    0.142
    
    
    
    0.037
    
    
    
    (0.015
    )Cash Dividends per Share (in Pesos)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Stock Dividends per Share (in Pesos)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Book Value per Share (in Pesos)
    
    
    0.500
    
    
    
    1.989
    
    
    
    1.653
    
    
    
    1.487
    
    
    
    1.333
    
    
    
    1.296Amounts in Accordance with U.S. GAAPNet Income / (Loss)
    
    
    576.9
    
    
    
    2,293.6
    
    
    
    770.2
    
    
    
    (1,171.0
    )
    
    
    592.9
    
    
    
    3,524.9Basic and Diluted Earnings / (Losses) per Share (in Pesos)
    
    
    0.465
    
    
    
    1.848
    
    
    
    0.620
    
    
    
    (0.943
    )
    
    
    0.478
    
    
    
    2.841Book Value / (Deficit) per Share (in Pesos)
    
    
    0.607
    
    
    
    2.414
    
    
    
    0.996
    
    
    
    (0.608
    )
    
    
    0.192
    
    
    
    0.117Financial Income
    
    
    1,202.1
    
    
    
    4,779.2
    
    
    
    3,374.8
    
    
    
    1,201.7
    
    
    
    2,433.2
    
    
    
    5,456.4Financial Expenses
    
    
    337.9
    
    
    
    1,343.4
    
    
    
    1,434.4
    
    
    
    1,391.3
    
    
    
    1,160.1
    
    
    
    1,863.6Net Financial Income / (Loss)
    
    
    864.2
    
    
    
    3,435.8
    
    
    
    1,940.4
    
    
    
    (189.6
    )
    
    
    1,273.1
    
    
    
    3,592.8Provision for Losses on Loans and Other Receivables
    
    
    138.3
    
    
    
    549.7
    
    
    
    527.3
    
    
    
    450.1
    
    
    
    203.4
    
    
    
    160.3Income Tax
    
    
    127.8
    
    
    
    508.1
    
    
    
    (54.5
    )
    
    
    50.9
    
    
    
    (92.5
    )
    
    
    (277.1
    )Consolidated Balance Sheet in Accordance with Argentine
Banking GAAPCash and Due from Banks
    
    
    1,420.0
    
    
    
    5,645.6
    
    
    
    3,696.3
    
    
    
    3,405.1
    
    
    
    2,960.0
    
    
    
    2,294.8Government Securities, Net
    
    
    570.4
    
    
    
    2,267.7
    
    
    
    3,907.2
    
    
    
    1,531.8
    
    
    
    1,693.0
    
    
    
    3,188.3Loans, Net
    
    
    5,370.9
    
    
    
    21,353.8
    
    
    
    13,477.9
    
    
    
    11,774.6
    
    
    
    11,601.0
    
    
    
    10,525.0Total Assets
    
    
    8,981.4
    
    
    
    35,708.1
    
    
    
    27,602.4
    
    
    
    24,735.8
    
    
    
    22,828.7
    
    
    
    23,615.4Deposits
    
    
    5,589.5
    
    
    
    22,222.8
    
    
    
    17,039.4
    
    
    
    14,056.1
    
    
    
    13,165.6
    
    
    
    10,779.4Other Funds (3)
    
    
    2,770.8
    
    
    
    11,015.8
    
    
    
    8,510.5
    
    
    
    8,834.0
    
    
    
    8,008.6
    
    
    
    11,227.5Total Shareholders Equity
    
    
    621.1
    
    
    
    2,469.5
    
    
    
    2,052.5
    
    
    
    1,845.7
    
    
    
    1,654.5
    
    
    
    1,608.5Average Total Assets (4)
    
    
    7,323.9
    
    
    
    29,118.4
    
    
    
    24,685.3
    
    
    
    23,412.5
    
    
    
    21,332.4
    
    
    
    24,614.5Percentage of Period-end Balance Sheet Items
Denominated in Dollars:Loans, Net of Allowances
    
    
    14.53
    
    
    
    14.53
    
    
    
    17.78
    
    
    
    16.97
    
    
    
    15.13
    
    
    
    16.66Total Assets
    
    
    18.98
    
    
    
    18.98
    
    
    
    24.95
    
    
    
    28.85
    
    
    
    27.60
    
    
    
    28.94Deposits
    
    
    18.08
    
    
    
    18.08
    
    
    
    18.16
    
    
    
    16.98
    
    
    
    15.53
    
    
    
    14.13Total Liabilities
    
    
    23.01
    
    
    
    23.01
    
    
    
    27.73
    
    
    
    32.47
    
    
    
    32.84
    
    
    
    30.41Amounts in Accordance with U.S. GAAPTrading Securities
    
    
    679.2
    
    
    
    2,700.4
    
    
    
    2,011.9
    
    
    
    989.6
    
    
    
    476.2
    
    
    
    208.2Available-for-Sale Securities
    
    
    599.9
    
    
    
    2,384.9
    
    
    
    3,916.9
    
    
    
    2,050.0
    
    
    
    3,717.3
    
    
    
    5,214.6Total Assets
    
    
    10,210.2
    
    
    
    40,593.9
    
    
    
    30,377.6
    
    
    
    25,159.7
    
    
    
    24,429.1
    
    
    
    24,107.0Total Liabilities
    
    
    9,456.4
    
    
    
    37,596.9
    
    
    
    29,141.3
    
    
    
    25,914.1
    
    
    
    24,191.0
    
    
    
    23,961.2Shareholders Equity (Deficit)
    
    
    753.8
    
    
    
    2,997.1
    
    
    
    1,236.3
    
    
    
    (754.4
    )
    
    
    238.1
    
    
    
    145.8
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Fiscal Year Ended December 31,2010
    
    
    2009
    
    
    2008
    
    
    2007
    
    
    2006(in millions of Pesos, except as noted)(1)Selected Ratios
in Accordance with Argentine Banking GAAPProfitability and EfficiencyNet Yield on Interest Earning Assets (5)
    
    
    11.38
    %
    
    
    9.10
    %
    
    
    5.72
    %
    
    
    4.13
    %
    
    
    1.21
    %Financial Margin (6)
    
    
    10.02
    
    
    
    8.41
    
    
    
    5.72
    
    
    
    4.12
    
    
    
    1.74Return on Average Assets (7)
    
    
    1.76
    
    
    
    1.12
    
    
    
    0.91
    
    
    
    0.37
    
    
    
    0.00Return on Average Shareholders Equity (8)
    
    
    18.63
    
    
    
    11.69
    
    
    
    10.13
    
    
    
    2.86
    
    
    
    (1.15
    )Net Income from Services as a Percentage of Operating Income (9)
    
    
    44.71
    
    
    
    45.90
    
    
    
    51.07
    
    
    
    54.86
    
    
    
    63.99Efficiency ratio (10)
    
    
    71.39
    
    
    
    71.05
    
    
    
    76.57
    
    
    
    77.29
    
    
    
    92.80CapitalShareholders Equity as a Percentage of Total Assets
    
    
    6.92
    %
    
    
    7.44
    %
    
    
    7.46
    %
    
    
    7.25
    %
    
    
    6.81
    %Total Liabilities as a Multiple of Shareholders Equity
    
    
    13.46
    x
    
    
    12.45
      x
    
    
    12.40
      x
    
    
    12.80
      x
    
    
    13.68
      xTotal Capital Ratio
    
    
    15.19
    %
    
    
    14.35
    %
    
    
    13.92
    %
    
    
    15.54
    %
    
    
    15.03
    %LiquidityCash and Due from Banks as a Percentage of Total Deposits
    
    
    25.40
    %
    
    
    21.69
    %
    
    
    24.23
    %
    
    
    22.48
    %
    
    
    21.29
    %Loans, Net as a Percentage of Total Assets
    
    
    59.80
    
    
    
    48.83
    
    
    
    47.60
    
    
    
    50.82
    
    
    
    44.57Credit QualityPast Due Loans (11) as a Percentage of Total Loans
    
    
    2.57
    %
    
    
    3.95
    %
    
    
    2.87
    %
    
    
    2.77
    %
    
    
    2.38
    %Non-Accrual Loans (12) as a Percentage of Total Loans
    
    
    3.37
    
    
    
    4.77
    
    
    
    3.49
    
    
    
    3.14
    
    
    
    2.58Allowance for Loan Losses as a Percentage of Non-accrual
Loans(12)
    
    
    137.57
    
    
    
    118.64
    
    
    
    123.11
    
    
    
    114.05
    
    
    
    117.16Net Charge-Offs (13) as a Percentage of Average Loans
    
    
    2.37
    
    
    
    2.84
    
    
    
    1.83
    
    
    
    0.65
    
    
    
    1.42Ratios in Accordance with U.S. GAAPCapitalShareholders Equity (deficit) as a Percentage of Total Assets
    
    
    7.38
    %
    
    
    4.07
    %
    
    
    (3.00
    )%
    
    
    0.97
    %
    
    
    0.60
    %Total Liabilities as a Multiple of Total Shareholders Equity
    
    
    12.54
      x
    
    
    23.57
      x
    
    
    (34.35
      )x
    
    
    101.61
      x
    
    
    164.33
      xLiquidityLoans, Net as a Percentage of Total Assets
    
    
    52.56
    %
    
    
    45.55
    %
    
    
    49.59
    %
    
    
    49.36
    %
    
    
    40.10
    %Credit QualityAllowance for Loan Losses as a Percentage of Non-Accrual Loans
    
    
    163.37
    
    
    
    108.37
    
    
    
    141.34
    
    
    
    132.13
    
    
    
    168.58Inflation and Exchange RateWholesale Inflation (14)
    
    
    14.56
    %
    
    
    10.04
    %
    
    
    8.82
    %
    
    
    14.56
    %
    
    
    7.14
    %Consumer Inflation (15)
    
    
    10.92
    
    
    
    7.69
    
    
    
    7.24
    
    
    
    8.47
    
    
    
    9.84Exchange Rate Variation (16) (%)
    
    
    4.72
    
    
    
    9.93
    
    
    
    9.61
    
    
    
    2.66
    
    
    
    1.25CER (17)
    
    
    11.04
    
    
    
    6.95
    
    
    
    7.97
    
    
    
    8.50
    
    
    
    10.08
 The ratios disclosed above are considered significant by the management of Grupo Financiero Galicia despite of the fact that they are not a specific requirement of any GAAP.
  -6-




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(1)
    
    The exchange rate used to convert the December 31, 2010 amounts into US Dollars was Ps.3.9758 per US$1.00. All amounts are stated in millions of Pesos, except inflation and exchange rates,
percentages, ratios, multiples and
per-share data.(2)
    
    Net financial income primarily represents income from interest on loans and other receivables resulting from financial brokerage plus net income from government and corporate debt securities, including
gains and losses, minus
interest on deposits and other liabilities from financial intermediation. It also includes the CER adjustment.(3)
    
    Includes primarily liabilities with other banks and international entities. Until December 31, 2006, debt with the Argentine Central Bank was also included.(4)
    
    The average balances of assets, including the related interest that is due are calculated on a daily basis for Banco Galicia and for Galicia Uruguay, as well as for Tarjetas Regionales S.A consolidated
with its operating
subsidiaries, and on a monthly basis for Grupo Financiero Galicia and its non-banking subsidiaries.(5)
    
    Net interest earned divided by interest-earning assets. For a description of net interest earned, see Item 4. Information on the Company-Selected Statistical Information-Interest-Earning
Assets-Net Yield on Interest-Earning
Assets.(6)
    
    Financial margin represents net financial income divided by average interest-earning assets.(7)
    
    Net income excluding minority interest as a percentage of average total assets.(8)
    
    Net income as a percentage of average shareholders equity.(9)
    
    Operating income is defined as net financial income plus net income from services.(10)
    
    Administrative expenses as a percentage of operating income as defined above.(11)
    
    Past-due loans are defined as the aggregate principal amount of a loan plus any accrued interest that is due and payable for which either the principal or any interest payment is 91 days or more past
due.(12)
    
    Non-Accrual loans are defined as those loans in the categories of: (a) Consumer portfolio: Medium Risk, High Risk, Uncollectible, and Uncollectible Due to
Technical Reasons, and (b) Commercial portfolio: With problems,
High Risk of Insolvency, Uncollectible, and Uncollectible Due to Technical Reasons.(13)
    
    Charge-offs plus direct charge-offs minus bad debts recovered.(14)
    
    As measured by the annual change in the end-of-period Wholesale Price Index (WPI), published by INDEC.(15)
    
    As measured by the annual change in the end-of-period Consumer Price Index (CPI), published by INDEC.(16)
    
    Annual change in the end-of-period exchange rate expressed in Pesos per US Dollar.(17)
    
    The CER is the Coeficiente de Estabilización de Referencia, an adjustment coefficient based on changes in the Consumer Price Index. 
 Exchange Rate Information
  Exchange Rate(1)High
    
    
    Low
    
    
    Average(2) (3)
    
    
    Period-End(in Pesos per US Dollar)2006
    
    
    3.1072
    
    
    
    3.0305
    
    
    
    3.0784
    (3)
    
    
    3.06952007
    
    
    3.1797
    
    
    
    3.0553
    
    
    
    3.1196
    (3)
    
    
    3.15102008
    
    
    3.4537
    
    
    
    3.0128
    
    
    
    3.1797
    (3)
    
    
    3.45372009
    
    
    3.8545
    
    
    
    3.4497
    
    
    
    3.7478
    (3)
    
    
    3.79672010
    
    
    3.9857
    
    
    
    3.7942
    
    
    
    3.9226
    (3)
    
    
    3.9758December 2010
    
    
    3.9857
    
    
    
    3.9732
    
    
    
    3.9776
    
    
    
    3.9758January 2011
    
    
    4.0008
    
    
    
    3.9715
    
    
    
    3.9813
    
    
    
    4.0008February 2011
    
    
    4.0305
    
    
    
    4.0088
    
    
    
    4.0220
    
    
    
    4.0305March 2011
    
    
    4.0520
    
    
    
    4.0288
    
    
    
    4.0372
    
    
    
    4.0520April 2011
    
    
    4.0837
    
    
    
    4.0495
    
    
    
    4.0655
    
    
    
    4.0805May 2011
    
    
    4.0887
    
    
    
    4.0788
    
    
    
    4.0839
    
    
    
    4.0887
 (1)
    
    Using closing reference exchange rates as published by the Argentine Central Bank.(2)
    
    Monthly average of daily closing quotations, unless otherwise noted.(3)
    
    Based on the annual average of the last day of each months closing quotation.   -7-




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Item 3.B.
    
    Capitalization and Indebtedness
  
 Item 3.C.
    
    Reasons for the Offer and Use of Proceeds
  
 Item 3.D.
    
    Risk Factors
 You should carefully consider the risks described below in addition to the other information
contained in this annual report. In addition, most, if not all, of the risks described below must
be evaluated bearing in mind that our most important asset is our equity interest in Banco Galicia,
thus, a material change in Banco Galicias shareholders equity or income statement would also
adversely affect our businesses and results of operations. We may also face risks and uncertainties
that are not presently known to us or that we currently deem immaterial, which may impair our
business. Our operations, property and customers are located mainly in Argentina. Accordingly, the
quality of our customer portfolio, loan portfolio, financial condition and results of operations
depend, to a significant extent, on the macroeconomic and political conditions prevailing in
Argentina. In general, the risk assumed when investing in the securities of issuers from countries
such as Argentina, is higher than when investing in the securities of issuers from developed
countries.
 Risk Factors Relating to Argentina
 Political and economic instability in Argentina and Government intervention in the economy as well
as market conditions may adversely affect Grupo Financiero Galicias business and prospects.
    Argentinas economic growth since the 2001-2002 economic crisis may not be sustainable in light of
current economic conditions and any significant decline in Argentinas rate of recovery could
adversely affect Grupo Financiero Galicias financial condition.
 Instituto Nacional de Estadísticas y Censos
  -8-




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
    
    the recovery has depended to some extent on high commodity prices, which are volatile
and beyond the control of the Government;
 
    
    inflation has risen and threatens to accelerate;
 
    
    the current fiscal situation is at risk of deterioration;
 
    
    the regulatory environment continues to be uncertain and has been subject to frequent
change;
 
    
    Argentinas international financing is limited;
 
    
    the availability of long-term fixed rate credit is scarce; and
 
    
    investment as a percentage of GDP remains low.
  Domestic and international uncertainty concerning the current political and social environment in
Argentina may have an impact on capital flows.
   Inflation could increase from current levels, and materially and adversely affect the Argentine
economy and Grupo Financiero Galicias financial position and business.
   -9-




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Argentinas ongoing litigation in relation to its default on its indebtedness in 2001 may limit its
ability, and that of private sector companies in Argentina, to obtain financing and to attract
direct foreign investment, and may have material adverse effects on the economy and the financial
performance of Grupo Financiero Galicia.
      -10-




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Fondo de Desendeudamiento Argentino Fondo del Bicentenario para el
Desendeudamiento y la Estabilidad
   A decline in the international prices for Argentinas main commodity exports and a significant real
appreciation of the Peso against the US Dollar could affect Argentinas economy, create new
pressures on the exchange market and have a material adverse effect on the prospects of Grupo
Financiero Galicia.
    -11-




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High volatility in the regulatory framework, specifically with respect to financial institutions,
could have a material adverse effect on the countrys economy in general, and Grupo Financiero
Galicias financial position specifically.
  Comisión Nacional de Valores, Unidad de
Información Financiera,
  Ley de Entidades Financieras,
   The Argentine economy and its goods and financial services and securities markets remain vulnerable
to external shocks, which could materially and adversely affect the countrys economic growth and
Grupo Financiero Galicias prospects.
      -12-




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A future devaluation of the Peso could limit the ability of, or prevent Grupo Financiero Galicia
from, being able to make payments with respect to its foreign currency denominated obligations.
    -13-




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We may be unable to make payments in Dollars and/or to make payments outside of Argentina due to
exchange controls .
  encaje
 Foreign judgments may not be enforceable in Argentina.
    The Reform of the Retirement and Pension Integrated System materially and adversely affected the
local capital markets and may materially and adversely affect Grupo Financiero Galicias ability to
obtain liquidity for its operations.
 Sistema Integrado Previsional Argentino Administración Nacional de la Seguridad Social
  -14-




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The Government may order salary increases to be paid to employees in the private sector, which
would increase Grupo Financiero Galicias operating costs.
  Risk Factors Relating to the Argentine Financial System
 The stability of the Argentine banking system is uncertain.
       If the volume of financial intermediation is not restored to significant levels, the capacity of
financial institutions, including Banco Galicia, to generate profits will be negatively affected.
   -15-




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The limited availability of medium- and long-term funding sources in Argentina may limit the
capacity of Argentine financial institutions, including Banco Galicia, to generate profits.
  Argentine financial institutions continue to have exposure to the public sector and its repayment
capacity which, in periods of economic downturn, may negatively impact their results of operations.
   The Government may once again impose limitations on the enforcement of creditor rights in Argentina
which could adversely affect the businesses of financial institutions, including Banco Galicias.
   -16-




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The application of the Consumer Protection Law may prevent or limit the collection of payments with
respect to services rendered by Grupo Financiero Galicia and its subsidiaries.
    Class actions against financial entities for an indeterminate amount may adversely affect the
profitability of the financial system and Banco Galicias business and financial condition.
  Risk Factors Relating to Us
 Increased competition and reduced spreads without a corresponding increase in lending volumes could
adversely affect Banco Galicias operations and profits.
   Tax audits or disputes, or changes in the tax laws applicable to Grupo Financiero Galicia, could
materially increase its tax payments, and certain administrative proceedings started by tax
authorities against financial institutions such as Banco Galicia could generate losses to such
institutions.
   -17-




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Banco Galicias net position in assets adjustable by the Reference Stabilization Coefficient
(Coeficiente de Estabilización de Referencia, CER) exposes it to real interest rate variation.
  Adverse conditions in the credit and capital markets and in the exchange rates may have a material
adverse effect on Grupo Financiero Galicias financial condition and results of operations and
adversely impact some of Grupo Financiero Galicias important funding sources, therefore limiting
its ability to access funding from such sources in a cost effective and/or timely manner.
   Grupo Financiero Galicia estimates and establishes reserves for potential credit risk and credit
losses, which may be inaccurate or insufficient, which may, in turn, materially and adversely
affect its financial condition and results of operations.
    -18-




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Changes in market conditions, and any risks associated thereto, could materially and adversely
affect the financial condition and results of operations of Grupo Financiero Galicia.
  Grupo Financiero Galicias main subsidiary, Banco Galicia, could fail to fully or timely detect
money laundering and other illegal or inappropriate activities which could result in Banco Galicia
incurring additional liability and could harm its business and reputation.
  Interruption or failure in Banco Galicias information technology systems could adversely affect
its operations and financial position.
  Payment defaults by customers may materially and adversely affect the financial and operating
results of Banco Galicias credit card subsidiaries, and in turn, those of the Bank.
   -19-




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A decrease in the interest rates charged to clients of Banco Galicias credit card subsidiaries and
related fees charged to merchants could materially and adversely affect the financial results of
its credit card subsidiaries, and therefore its ability to make payments.
  Grupo Financiero Galicia could be unable to invest in its business developments and/or to repay its
financial obligations due to a lack of liquidity caused by it being a holding company.
    
 Item 4.
    
    Information on the Company
 
 History and Development of the Company
 sociedad anónima
   -20-




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Organizational Structure
  
    
    Galicia Uruguay, incorporated in Uruguay and currently not an operating financial
institution;
 
    
    Galval, incorporated in Uruguay;
 
    
    Galicia Cayman, incorporated in the Cayman Islands;
 
    
    Tarjeta Naranja Dominicana S.A., incorporated in the Dominican Republic.
  -21-




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History
 Grupo Financiero Galicia
    -22-




---



##### Table of Contents



Banco Galicia
 Superintendencia de Entidades Financieras y Cambiarias
     -23-




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##### Table of Contents



Interior Interior
       -24-




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##### Table of Contents



Comisión Nacional de Defensa de la Competencia
 Restructuring of the Foreign Debt of Banco Galicias Head Office in Argentina and its Cayman
Branch
   
    
    US$648.5 million of long-term Dollar-denominated debt instruments, of which US$464.8
million were Dollar-denominated negotiable obligations due 2014 (referred to as the Step
Up Notes Due 2014 or the 2014 Notes) issued under an indenture.
 
    
    US$399.8 million of medium-term Dollar-denominated debt instruments, of which US$352.8
million were Dollar-denominated negotiable obligations due 2010 (referred to as the
Floating Rate Notes Due 2010 or the 2010 Notes) issued under an indenture.
 
    
    US$230.0 million of subordinated Dollar-denominated debt instruments, of which US$218.2
million were Dollar-denominated negotiable obligations due 2019 (referred to as the
Subordinated Notes Due 2019 or the 2019 Notes) issued under an indenture.
  Banco Galicias 2007 Capital Increase
   -25-




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Banco Galicia Uruguay S.A. and Galicia (Cayman) Ltd.
 Casa Bancaria
   Regional Credit Card Companies
   -26-




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Compañía Financiera Argentina
  Efectivo Sí
   -27-




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##### Table of Contents



Mercado Abierto Efectivo Sí"
 División Convenios
  Cuota
Sí
  Sudamericana
  Net Investment S.A.
     -28-




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Galicia Warrants S.A.
   Galval
  GV Mandataria
  
 Business
 Banking
      -29-




---



##### Table of Contents



Wholesale Banking
      Cobranza Integrada Galicia Pago a Proveedores Pago de Haberes
      -30-




---



##### Table of Contents



Retail Banking
  Cada día más
  Zona Galicia Zona Galicia
   -31-




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##### Table of Contents



Geographical Area
    
    Number of BranchesCity of Buenos Aires
    
    
    77Greater Buenos Aires
    
    
    62Rest of the Province of Buenos Aires
    
    
    28Santa Fe
    
    
    15Córdoba
    
    
    15Mendoza
    
    
    9Entre Ríos and Chubut
    
    4 eachRío Negro
    
    
    3Corrientes, La Pampa, Misiones, San Luis, Tierra del
Fuego and Tucumán
    
    2 eachCatamarca, Chaco, Formosa, Jujuy, La Rioja, Neuquén,
Salta, Santa Cruz, Santiago del Estero and San Juan
    
    1 eachTotal
    
    
    239
  -32-




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Regional Credit Card Companies
      -33-




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##### Table of Contents



CFA
   
    
    Efectivo Sí:Unsecured personal loans payable in installments.
 
    
    Cuota Sí:Product to finance purchases of goods through merchants associated with CFA,
without using any cash or credit cards. Such goods include home appliances, household goods
and construction materials.
 
    
    Loans to Public Sector Employees:Loans targeted to public sector employees on the
national level, which are deducted directly from their salary.
 
    
    Loans to Financial Brokerage Firms and Employees.Payroll loans to affiliates or
associate members of brokerage firms (mutuals, cooperatives, unions, etc.) and to company
employees.
 
    
    Credit Cards:Issued by Visa and MasterCard, both at domestic and international level.
 
    
    Pagos Jubilatorios de la ANSES(Retirement and pension payment  National Social
Security Administration): Aimed at retired people and pensioners collecting their payments
at CFA.
 
    
    Microfinance:Credit lines for small ventures in specific geographic areas across the
country.
 
    
    Insurance:CFA sells different types of insurance policies from leading companies of the
market to meet customers needs.
  Financial Division
  Mercado Abierto Electrónico
  -34-




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Insurance
       -35-




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Other Businesses
 Galicia Warrants:
 Net Investment:
   Galval:
 GV Mandataria
  
 Competition
  Banking
    -36-




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Argentine Banking System
       -37-




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##### Table of Contents



Regional Credit Cards
  Compañía Financiera Argentina
 th
  Insurance
       
 Sales and Marketing
  March 2011Branches(number)Bank Branches
    
    
    240Regional Credit Card Cos. Branches
    
    
    175CFA Branches
    
    
    95Business Centers and In-House Facilities
    
    
    21Private-Banking Centers
    
    
    13Electronic Banking Terminals(number)ATMs
    
    
    701Self-Service Terminals
    
    
    786Electronic Banking Transactions(thousands per month)ATMs + Self-Service Terminals
    
    
    14,134Phone-Banking
    
    
    331e-banking
    
    
    23,561
  -38-




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" 
  -39-




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##### Table of Contents



Property
  SquareMetersProperty
    
    Address
    
    (approx.)
    
    
    Main UsesGrupo Financiero Galicia- Owned
    
    -Tte. Gral. Juan D. Perón 456, 2nd floor, Buenos Aires, Argentina
    
    
    191
    
    
    Administrative activitiesBanco de Galicia y Buenos Aires S.A.- Owned
    
    -Tte. Gral. Juan D. Perón 407, Buenos Aires, Argentina
    
    
    17,300
    
    
    Administrative activities-Tte. Gral. Juan D. Perón 430, Buenos Aires, Argentina
    
    
    42,000
    
    
    Administrative activities-Florida 361, Buenos Aires, Argentina
    
    
    7,300
    
    
    Administrative activities- Rented
    
    -San Martín 178/200, Buenos Aires, Argentina
    
    
    3,600
    
    
    Administrative activitiesBanco Galicia Uruguay S.A. (in liquidation)- Rented
    
    -Montevideo, Uruguay
    
    
    580
    
    
    Storage-Dr. Americo Ricaldoni 2468, Montevideo, Uruguay
    
    
    400
    
    
    Administrative activitiesTarjeta Naranja S.A.- Owned
    
    -Sucre 152, 154 and 541, Córdoba, Argentina
    
    
    6,307
    
    
    Administrative activities-Humberto Primo, Córdoba, Argentina
    
    
    4,883
    
    
    Administrative activities-Jujuy 542, Córdoba, Argentina
    
    
    853
    
    
    Administrative activities-Ruta Nacional 36, km. 8, Córdoba, Argentina
    
    
    49,249
    
    
    Storage-Río Grande, Tierra del Fuego, Argentina
    
    
    309
    
    
    Administrative activities-San Jerónimo 2348 and 2350, Santa Fe, Argentina
    
    
    1,475
    
    
    Administrative activities- Rented
    
    -Sucre 145/151, La Rioja 359, 364 and 375, Córdoba, Argentina
    
    
    4,450
    
    
    Administrative activities and
printing centreTarjetas Cuyanas S.A.- Rented
    
    -Belgrano 1415, Mendoza, Argentina
    
    
    1,160
    
    
    Administrative activities-Belgrano 1462, Mendoza, Argentina
    
    
    1,156
    
    
    Administrative activities-Belgrano 1478, Mendoza, Argentina
    
    
    175
    
    
    Printing centreTarjetas del Mar S.A.- Rented
    
    -Luro 3001, Mar del Plata, Buenos Aires, Argentina
    
    
    100
    
    
    Administrative Activities-Luro 2943, Mar del Plata, Buenos Aires, Argentina
    
    
    980
    
    
    Administrative Activities-Catamarca 1586, Mar del Plata, Buenos Aires, Argentina
    
    
    170Compañía Financiera Argentina- Rented
    
    -Florida 238, Buenos Aires, Argentina
    
    
    4,500
    
    
    Administrative Activities-Azopardo 467, Buenos Aires, Argentina
    
    
    3,700
    
    
    Administrative ActivitiesGalicia Seguros S.A.- Owned
    
    -Maipú 241, Buenos Aires, Argentina
    
    
    3,261
    
    
    Administrative activitiesGalicia Warrants S.A.- Owned
    
    -Tte. Gral. Juan D. Perón 456, 6th floor, Buenos Aires, Argentina
    
    
    118
    
    
    Administrative activities-Alsina 3396/3510, San Miguel de Tucumán, Tucumán, Argentina
    
    
    12,800
    
    
    Storage- Rented
    
    -Alto Verde, Chicligasta, Tucumán, Argentina
    
    
    2,000
    
    
    StorageGalval
Agente de Valores S.A.- Rented
    
    -Zona Franca, Montevideo, Uruguay
    
    
    300
    
    
    Administrative activitiesGV Mandataria de Valores S.A.- Rented
    
    -25 de Mayo 432, 3rd floor, Buenos Aires, Argentina(1)
    
    
    336
    
    
    Administrative activities
 (1)
    
    Banco Galicia leases, from September 1, 2008 to August 31, 2011, a property to GV Mandataria, for US$4,500 per month during the first
year, US$4,635 during the second year and US$4,775 during the third year.  -40-




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##### Table of Contents




    
    Banco Galicia: 239 branches located in Argentina, 137 of which were owned and 102 of
which were rented by Banco Galicia, located in all of Argentinas 23 provinces.
 
    
    Tarjeta Naranja S.A.: 122 sales points located in 21 of the 23 Argentine provinces, 120
of which were rented by the company.
 
    
    Tarjetas Cuyanas S.A.: 42 sales points in the provinces of Mendoza, San Juan, San Luis,
Santiago del Estero, La Pampa, La Rioja, Catamarca, Neuquén, Rio Negro, Salta, Jujuy and
Tucumán. All of them were rented.
 
    
    Tarjetas del Mar S.A.: 12 sales points located in the Province of Buenos Aires, all of
which were rented. In addition, it owns 11 client assistance centers located in the
Province of Buenos Aires and 48 sales stands located in premises that belong to La Anónima
supermarket chain, in the provinces of Buenos Aires, La Pampa, Neuquén, Río Negro, Chubut
and Tierra del Fuego.
 
    
    CFA: 41 branches, 38 mini-branches and 16 payment centers, all of which were rented,
located in all of Argentinas provinces, with at least one branch located in each province.
 
 Capital Investments and Divestitures
  
    
    Ps.105.7 million in fixed assets (real estate, machinery and equipment,
vehicles, furniture and fittings);
 
    
    Ps.13.1 million in construction in progress; and
 
    
    Ps.211.7 million in organizational and IT system development expenses.
  
    
    Ps.56.6 million in fixed assets (real estate, machinery and equipment, vehicles,
furniture and fittings);
 
    
    Ps.4.7 million in construction in progress; and
 
    
    Ps.118.2 million in organizational and IT system development expenses.
  
    
    Ps.103.4 million in fixed assets (real estate, machinery and equipment,
vehicles, furniture and fittings);
 
    
    Ps.44 million in construction in progress; and
 
    
    Ps.132.5 million in organizational and IT system development expenses.
       -41-




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##### Table of Contents



(In millions of Pesos)Infrastructure of Corporate Buildings, Tower and Branches
(construction, furniture, equipment, phones, etc.)
    
    Ps.
    226.8Fixed Assets
    
    
    102.3Organizational and IT System Development
    
    
    294.4Total
    
    Ps.
    623.5
   
 Selected Statistical Information
   Average Balance Sheet and Income from Interest-Earning Assets and Expenses from Interest-Bearing
Liabilities
     -42-




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##### Table of Contents



Fiscal Year Ended December 31, 2010 (*)Pesos
    
    
    Dollars
    
    
    TotalAverage
    
    
    
    
    
    
    
    
    
    
    Average
    
    
    
    
    
    
    
    
    
    
    AverageAverage
    
    
    Accrued
    
    
    Yield/
    
    
    Average
    
    
    Accrued
    
    
    Yield/
    
    
    Average
    
    
    Accrued
    
    
    Yield/Balance
    
    
    Interest
    
    
    Rate
    
    
    Balance
    
    
    Interest
    
    
    Rate
    
    
    Balance
    
    
    Interest
    
    
    Rate(in millions of Pesos, except rates)AssetsGovernment Securities
    
    
    2,770.6
    
    
    
    567.6
    
    
    
    20.49
    
    
    
    573.5
    
    
    
    (181.0
    )
    
    
    (31.56
    )
    
    
    3,344.1
    
    
    
    386.6
    
    
    
    11.56LoansPrivate Sector
    
    
    14,191.4
    
    
    
    3,002.5
    
    
    
    21.16
    
    
    
    2,609.0
    
    
    
    116.1
    
    
    
    4.45
    
    
    
    16,800.4
    
    
    
    3,118.6
    
    
    
    18.56Banco Galicia and Regional
Credit Card Companies
    
    
    13,551.0
    
    
    
    2,683.1
    
    
    
    19.80
    
    
    
    2,609.0
    
    
    
    116.1
    
    
    
    4.45
    
    
    
    16,160.0
    
    
    
    2,799.2
    
    
    
    17.32CFA
    
    
    640.4
    
    
    
    319.4
    
    
    
    49.88
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    640.4
    
    
    
    319.4
    
    
    
    49.88Public Sector
    
    
    0.4
    
    
    
    
    
    
    
    0.20
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    0.4
    
    
    
    
    
    
    
    0.20Total Loans(1)
    
    
    14,191.8
    
    
    
    3,002.5
    
    
    
    21.16
    
    
    
    2,609.0
    
    
    
    116.1
    
    
    
    4.45
    
    
    
    16,800.8
    
    
    
    3,118.6
    
    
    
    18.56Other
    
    
    1,571.8
    
    
    
    85.3
    
    
    
    5.43
    
    
    
    266.6
    
    
    
    3.9
    
    
    
    1.46
    
    
    
    1,838.4
    
    
    
    89.2
    
    
    
    4.85Total Interest-Earning Assets
    
    
    18,534.2
    
    
    
    3,655.4
    
    
    
    19.72
    
    
    
    3,449.1
    
    
    
    (61.0
    )
    
    
    (1.77
    )
    
    
    21,983.3
    
    
    
    3,594.4
    
    
    
    16.35Cash and Gold
    
    
    2,084.8
    
    
    
    
    
    
    
    
    
    
    
    2,233.0
    
    
    
    
    
    
    
    
    
    
    
    4,317.8
    
    
    
    
    
    
    
    Equity in Other Companies
    
    
    702.5
    
    
    
    
    
    
    
    
    
    
    
    147.7
    
    
    
    
    
    
    
    
    
    
    
    850.2
    
    
    
    
    
    
    
    Other Assets
    
    
    2,735.0
    
    
    
    
    
    
    
    
    
    
    
    183.6
    
    
    
    
    
    
    
    
    
    
    
    2,918.6
    
    
    
    
    
    
    
    Allowances
    
    
    (901.1
    )
    
    
    
    
    
    
    
    
    
    
    (50.4
    )
    
    
    
    
    
    
    
    
    
    
    (951.5
    )
    
    
    
    
    
    
    Total Assets
    
    
    23,155.4
    
    
    
    
    
    
    
    
    
    
    
    5,963.0
    
    
    
    
    
    
    
    
    
    
    
    29,118.4
    
    
    
    
    
    
    
    Liabilities and EquityDepositsCurrent Accounts
    
    
    328.1
    
    
    
    5.5
    
    
    
    1.67
    
    
    
    180.0
    
    
    
    
    
    
    
    
    
    
    
    508.1
    
    
    
    5.5
    
    
    
    1.08Savings Accounts
    
    
    2,717.5
    
    
    
    7.7
    
    
    
    0.28
    
    
    
    1,298.7
    
    
    
    
    
    
    
    
    
    
    
    4,016.2
    
    
    
    7.7
    
    
    
    0.19Time Deposits
    
    
    7,083.8
    
    
    
    741.8
    
    
    
    10.47
    
    
    
    1,470.5
    
    
    
    11.7
    
    
    
    0.79
    
    
    
    8,554.3
    
    
    
    753.5
    
    
    
    8.81Total Interest-Bearing Deposits
    
    
    10,129.4
    
    
    
    755.0
    
    
    
    7.45
    
    
    
    2,949.2
    
    
    
    11.7
    
    
    
    0.40
    
    
    
    13,078.6
    
    
    
    766.7
    
    
    
    5.86Argentine Central Bank
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    0.7
    
    
    
    
    
    
    
    
    
    
    
    0.7
    
    
    
    
    
    
    
    Other Financial Entities
    
    
    335.2
    
    
    
    61.3
    
    
    
    18.29
    
    
    
    281.2
    
    
    
    7.1
    
    
    
    2.53
    
    
    
    616.4
    
    
    
    68.4
    
    
    
    11.10Debt Securities
    
    
    256.7
    
    
    
    32.3
    
    
    
    12.58
    
    
    
    2,019.4
    
    
    
    196.2
    
    
    
    9.72
    
    
    
    2,276.1
    
    
    
    228.5
    
    
    
    10.04Other
    
    
    147.5
    
    
    
    10.7
    
    
    
    7.25
    
    
    
    543.2
    
    
    
    18.9
    
    
    
    3.48
    
    
    
    690.7
    
    
    
    29.6
    
    
    
    4.29Total Interest-Bearing
Liabilities
    
    
    10,868.8
    
    
    
    859.3
    
    
    
    7.91
    
    
    
    5,793.7
    
    
    
    233.9
    
    
    
    4.04
    
    
    
    16,662.5
    
    
    
    1,093.2
    
    
    
    6.56Demand Deposits
    
    
    4,746.0
    
    
    
    
    
    
    
    
    
    
    
    390.7
    
    
    
    
    
    
    
    
    
    
    
    5,136.7
    
    
    
    
    
    
    
    Other Liabilities
    
    
    3,995.8
    
    
    
    
    
    
    
    
    
    
    
    786.5
    
    
    
    
    
    
    
    
    
    
    
    4,782.3
    
    
    
    
    
    
    
    Minority Interests
    
    
    341.9
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    341.9
    
    
    
    
    
    
    
    Shareholders Equity
    
    
    2,195.0
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    2,195.0
    
    
    
    
    
    
    
    Total Liabilities and Equity
    
    
    22,147.5
    
    
    
    
    
    
    
    
    
    
    
    6,970.9
    
    
    
    
    
    
    
    
    
    
    
    29,118.4
    
    
    
    
    
    
    
    Spread and Net YieldInterest Rate Spread
    
    
    
    
    
    
    
    
    
    
    11.81
    
    
    
    
    
    
    
    
    
    
    
    (5.81
    )
    
    
    
    
    
    
    
    
    
    
    9.79Cost of Funds Supporting
Interest-Earning Assets
    
    
    
    
    
    
    
    
    
    
    4.64
    
    
    
    
    
    
    
    
    
    
    
    6.78
    
    
    
    
    
    
    
    
    
    
    
    4.97Net Yield on Interest-Earning
Assets
    
    
    
    
    
    
    
    
    
    
    15.09
    
    
    
    
    
    
    
    
    
    
    
    (8.55
    )
    
    
    
    
    
    
    
    
    
    
    11.38
 (*)
    
    Rates include the CER adjustment.(1)
    
    Non accruing loans have been included in average loans.  -43-




---



##### Table of Contents



Fiscal Year Ended December 31, 2009 (*)Pesos
    
    
    Dollars
    
    
    TotalAverage
    
    
    
    
    
    
    
    
    
    
    Average
    
    
    
    
    
    
    
    
    
    
    AverageAverage
    
    
    Accrued
    
    
    Yield/
    
    
    Average
    
    
    Accrued
    
    
    Yield/
    
    
    Average
    
    
    Accrued
    
    
    Yield/Balance
    
    
    Interest
    
    
    Rate
    
    
    Balance
    
    
    Interest
    
    
    Rate
    
    
    Balance
    
    
    Interest
    
    
    Rate(in millions of Pesos, except rates)AssetsGovernment Securities
    
    
    2,500.7
    
    
    
    505.0
    
    
    
    20.19
    
    
    
    2,185.8
    
    
    
    50.1
    
    
    
    2.29
    
    
    
    4,686.5
    
    
    
    555.1
    
    
    
    11.84LoansPrivate Sector
    
    
    9,431.6
    
    
    
    2,049.8
    
    
    
    21.73
    
    
    
    1,912.0
    
    
    
    140.3
    
    
    
    7.34
    
    
    
    11,343.6
    
    
    
    2,190.1
    
    
    
    19.31Public Sector
    
    
    120.0
    
    
    
    27.0
    
    
    
    22.50
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    120.0
    
    
    
    27.0
    
    
    
    22.50Total Loans(1)
    
    
    9,551.6
    
    
    
    2,076.8
    
    
    
    21.74
    
    
    
    1,912.0
    
    
    
    140.3
    
    
    
    7.34
    
    
    
    11,463.6
    
    
    
    2,217.1
    
    
    
    19.34Other
    
    
    1,717.9
    
    
    
    111.2
    
    
    
    6.47
    
    
    
    510.0
    
    
    
    4.0
    
    
    
    0.78
    
    
    
    2,227.9
    
    
    
    115.2
    
    
    
    5.17Total Interest-Earning Assets
    
    
    13,770.2
    
    
    
    2,693.0
    
    
    
    19.56
    
    
    
    4,607.8
    
    
    
    194.4
    
    
    
    4.22
    
    
    
    18,378.0
    
    
    
    2,887.4
    
    
    
    15.71Cash and Gold
    
    
    1,515.2
    
    
    
    
    
    
    
    
    
    
    
    1,913.5
    
    
    
    
    
    
    
    
    
    
    
    3,428.7
    
    
    
    
    
    
    
    Equity in Other Companies
    
    
    843.2
    
    
    
    
    
    
    
    
    
    
    
    157.2
    
    
    
    
    
    
    
    
    
    
    
    1,000.4
    
    
    
    
    
    
    
    Other Assets
    
    
    2,482.3
    
    
    
    
    
    
    
    
    
    
    
    162.9
    
    
    
    
    
    
    
    
    
    
    
    2,645.2
    
    
    
    
    
    
    
    Allowances
    
    
    (724.8
    )
    
    
    
    
    
    
    
    
    
    
    (42.2
    )
    
    
    
    
    
    
    
    
    
    
    (767.0
    )
    
    
    
    
    
    
    Total Assets
    
    
    17,886.1
    
    
    
    
    
    
    
    
    
    
    
    6,799.2
    
    
    
    
    
    
    
    
    
    
    
    24,685.3
    
    
    
    
    
    
    
    Liabilities and EquityDepositsCurrent Accounts
    
    
    790.0
    
    
    
    12.9
    
    
    
    1.63
    
    
    
    497.3
    
    
    
    
    
    
    
    
    
    
    
    1,287.3
    
    
    
    12.9
    
    
    
    1.00Savings Accounts
    
    
    1,988.4
    
    
    
    5.7
    
    
    
    0.29
    
    
    
    1,026.1
    
    
    
    
    
    
    
    
    
    
    
    3,014.5
    
    
    
    5.7
    
    
    
    0.19Time Deposits
    
    
    6,073.9
    
    
    
    843.2
    
    
    
    13.88
    
    
    
    1,318.0
    
    
    
    19.1
    
    
    
    1.45
    
    
    
    7,391.9
    
    
    
    862.3
    
    
    
    11.67Total Interest-Bearing Deposits
    
    
    8,852.3
    
    
    
    861.8
    
    
    
    9.74
    
    
    
    2,841.4
    
    
    
    19.1
    
    
    
    0.67
    
    
    
    11,693.7
    
    
    
    880.9
    
    
    
    7.53Argentine Central Bank
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    0.6
    
    
    
    
    
    
    
    
    
    
    
    0.6
    
    
    
    
    
    
    
    Other Financial Entities
    
    
    236.5
    
    
    
    44.8
    
    
    
    18.94
    
    
    
    167.9
    
    
    
    9.0
    
    
    
    5.36
    
    
    
    404.4
    
    
    
    53.8
    
    
    
    13.30Debt Securities
    
    
    325.8
    
    
    
    59.7
    
    
    
    18.32
    
    
    
    2,404.1
    
    
    
    164.6
    
    
    
    6.85
    
    
    
    2,729.9
    
    
    
    224.3
    
    
    
    8.22Other
    
    
    162.9
    
    
    
    12.2
    
    
    
    7.49
    
    
    
    931.9
    
    
    
    44.1
    
    
    
    4.73
    
    
    
    1,094.8
    
    
    
    56.3
    
    
    
    5.14Total Interest-Bearing
Liabilities
    
    
    9,577.5
    
    
    
    978.5
    
    
    
    10.22
    
    
    
    6,345.9
    
    
    
    236.8
    
    
    
    3.73
    
    
    
    15,923.4
    
    
    
    1,215.3
    
    
    
    7.63Demand Deposits
    
    
    3,058.8
    
    
    
    
    
    
    
    
    
    
    
    6.2
    
    
    
    
    
    
    
    
    
    
    
    3,065.0
    
    
    
    
    
    
    
    Other Liabilities
    
    
    2,816.3
    
    
    
    
    
    
    
    
    
    
    
    669.5
    
    
    
    
    
    
    
    
    
    
    
    3,485.8
    
    
    
    
    
    
    
    Minority Interests
    
    
    249.9
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    249.9
    
    
    
    
    
    
    
    Shareholders Equity
    
    
    1,961.2
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    1,961.2
    
    
    
    
    
    
    
    Total Liabilities and Equity
    
    
    17,663.7
    
    
    
    
    
    
    
    
    
    
    
    7,021.6
    
    
    
    
    
    
    
    
    
    
    
    24,685.3
    
    
    
    
    
    
    
    Spread and Net YieldInterest Rate Spread
    
    
    
    
    
    
    
    
    
    
    9.34
    
    
    
    
    
    
    
    
    
    
    
    0.49
    
    
    
    
    
    
    
    
    
    
    
    8.08Cost of Funds Supporting
Interest-Earning Assets
    
    
    
    
    
    
    
    
    
    
    7.11
    
    
    
    
    
    
    
    
    
    
    
    5.14
    
    
    
    
    
    
    
    
    
    
    
    6.61Net Yield on Interest-Earning
Assets
    
    
    
    
    
    
    
    
    
    
    12.45
    
    
    
    
    
    
    
    
    
    
    
    (0.92
    )
    
    
    
    
    
    
    
    
    
    
    9.10
 (*)
    
    Rates include the CER adjustment.(1)
    
    Non accruing loans have been included in average loans.  -44-




---



##### Table of Contents



Fiscal Year Ended December 31, 2008 (*)Pesos
    
    
    Dollars
    
    
    TotalAverage
    
    
    
    
    
    
    
    
    
    
    Average
    
    
    
    
    
    
    
    
    
    
    AverageAverage
    
    
    Accrued
    
    
    Yield/
    
    
    Average
    
    
    Accrued
    
    
    Yield/
    
    
    Average
    
    
    Accrued
    
    
    Yield/Balance
    
    
    Interest
    
    
    Rate
    
    
    Balance
    
    
    Interest
    
    
    Rate
    
    
    Balance
    
    
    Interest
    
    
    Rate(in millions of Pesos, except rates)AssetsGovernment Securities
    
    
    1,161.4
    
    
    
    72.2
    
    
    
    6.22
    
    
    
    2,480.8
    
    
    
    76.3
    
    
    
    3.08
    
    
    
    3,642.2
    
    
    
    148.5
    
    
    
    4.08LoansPrivate Sector
    
    
    8,848.1
    
    
    
    1,756.6
    
    
    
    19.85
    
    
    
    1,964.4
    
    
    
    132.6
    
    
    
    6.75
    
    
    
    10,812.5
    
    
    
    1,889.2
    
    
    
    17.47Public Sector
    
    
    1,264.8
    
    
    
    165.7
    
    
    
    13.10
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    1,264.8
    
    
    
    165.7
    
    
    
    13.10Total Loans(1)
    
    
    10,112.9
    
    
    
    1,922.3
    
    
    
    19.01
    
    
    
    1,964.4
    
    
    
    132.6
    
    
    
    6.75
    
    
    
    12,077.3
    
    
    
    2,054.9
    
    
    
    17.01Other(2)
    
    
    2,908.1
    
    
    
    197.0
    
    
    
    6.77
    
    
    
    1,264.9
    
    
    
    15.2
    
    
    
    1.20
    
    
    
    4,173.0
    
    
    
    212.2
    
    
    
    5.09Total Interest-Earning Assets
    
    
    14,182.4
    
    
    
    2,191.5
    
    
    
    15.45
    
    
    
    5,710.1
    
    
    
    224.1
    
    
    
    3.92
    
    
    
    19,892.5
    
    
    
    2,415.6
    
    
    
    12.14Cash and Gold
    
    
    599.2
    
    
    
    
    
    
    
    
    
    
    
    287.9
    
    
    
    
    
    
    
    
    
    
    
    887.1
    
    
    
    
    
    
    
    Equity in Other Companies
    
    
    708.4
    
    
    
    
    
    
    
    
    
    
    
    63.8
    
    
    
    
    
    
    
    
    
    
    
    772.2
    
    
    
    
    
    
    
    Other Assets
    
    
    2,211.6
    
    
    
    
    
    
    
    
    
    
    
    218.2
    
    
    
    
    
    
    
    
    
    
    
    2,429.8
    
    
    
    
    
    
    
    Allowances
    
    
    (479.1
    )
    
    
    
    
    
    
    
    
    
    
    (90.0
    )
    
    
    
    
    
    
    
    
    
    
    (569.1
    )
    
    
    
    
    
    
    Total Assets
    
    
    17,222.5
    
    
    
    
    
    
    
    
    
    
    
    6,190.0
    
    
    
    
    
    
    
    
    
    
    
    23,412.5
    
    
    
    
    
    
    
    Liabilities and EquityDepositsCurrent Accounts
    
    
    697.7
    
    
    
    21.6
    
    
    
    3.10
    
    
    
    250.4
    
    
    
    
    
    
    
    
    
    
    
    948.1
    
    
    
    21.6
    
    
    
    2.28Savings Accounts
    
    
    1,849.3
    
    
    
    4.7
    
    
    
    0.25
    
    
    
    738.4
    
    
    
    
    
    
    
    
    
    
    
    2,587.7
    
    
    
    4.7
    
    
    
    0.18Time Deposits
    
    
    5,797.6
    
    
    
    749.9
    
    
    
    12.93
    
    
    
    971.8
    
    
    
    17.8
    
    
    
    1.83
    
    
    
    6,769.4
    
    
    
    767.7
    
    
    
    11.34Total Interest-Bearing Deposits
    
    
    8,344.6
    
    
    
    776.2
    
    
    
    9.30
    
    
    
    1,960.6
    
    
    
    17.8
    
    
    
    0.91
    
    
    
    10,305.2
    
    
    
    794.0
    
    
    
    7.70Argentine Central Bank
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    0.4
    
    
    
    
    
    
    
    
    
    
    
    0.4
    
    
    
    
    
    
    
    Other Financial Entities
    
    
    297.7
    
    
    
    53.8
    
    
    
    18.07
    
    
    
    797.5
    
    
    
    39.3
    
    
    
    4.93
    
    
    
    1,095.2
    
    
    
    93.1
    
    
    
    8.50Debt Securities
    
    
    487.3
    
    
    
    70.5
    
    
    
    14.47
    
    
    
    2,312.5
    
    
    
    209.6
    
    
    
    9.06
    
    
    
    2,799.8
    
    
    
    280.1
    
    
    
    10.00Other
    
    
    224.9
    
    
    
    21.6
    
    
    
    9.60
    
    
    
    1,269.0
    
    
    
    88.9
    
    
    
    7.01
    
    
    
    1,493.9
    
    
    
    110.5
    
    
    
    7.40Total Interest-Bearing
Liabilities
    
    
    9,354.5
    
    
    
    922.1
    
    
    
    9.86
    
    
    
    6,340.0
    
    
    
    355.6
    
    
    
    5.61
    
    
    
    15,694.5
    
    
    
    1,277.7
    
    
    
    8.14Demand Deposits
    
    
    2,873.6
    
    
    
    
    
    
    
    
    
    
    
    12.4
    
    
    
    
    
    
    
    
    
    
    
    2,886.0
    
    
    
    
    
    
    
    Other Liabilities
    
    
    2,313.1
    
    
    
    
    
    
    
    
    
    
    
    559.5
    
    
    
    
    
    
    
    
    
    
    
    2,872.6
    
    
    
    
    
    
    
    Minority Interests
    
    
    214.4
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    214.4
    
    
    
    
    
    
    
    Shareholders Equity
    
    
    1,745.0
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    1,745.0
    
    
    
    
    
    
    
    Total Liabilities and Equity
    
    
    16,500.6
    
    
    
    
    
    
    
    
    
    
    
    6,911.9
    
    
    
    
    
    
    
    
    
    
    
    23,412.5
    
    
    
    
    
    
    
    Spread and Net YieldInterest Rate Spread
    
    
    
    
    
    
    
    
    
    
    5.59
    
    
    
    
    
    
    
    
    
    
    
    (1.69
    )
    
    
    
    
    
    
    
    
    
    
    4.00Cost of Funds Supporting
Interest-Earning Assets
    
    
    
    
    
    
    
    
    
    
    6.50
    
    
    
    
    
    
    
    
    
    
    
    6.23
    
    
    
    
    
    
    
    
    
    
    
    6.42Net Yield on Interest-Earning
Assets
    
    
    
    
    
    
    
    
    
    
    8.95
    
    
    
    
    
    
    
    
    
    
    
    (2.30
    )
    
    
    
    
    
    
    
    
    
    
    5.72
 (*)
    
    Rates include the CER adjustment.(1)
    
    Non accruing loans have been included in average loans. (2) Includes, among other amounts, the amounts corresponding to the Compensatory Bond and the
Hedge Bond to be received.  -45-




---



##### Table of Contents



Changes in Net Interest Income-Volume and Rate Analysis
  Fiscal Year 2010/ Fiscal Year 2009, Increase
    
    
    Fiscal Year 2009/ Fiscal Year 2008, Increase(Decrease) due to changes in
    
    
    (Decrease) due to changes inVolume
    
    
    Rate
    
    
    Net Change
    
    
    Volume
    
    
    Rate
    
    
    Net Change(in millions of Pesos)Interest Earning AssetsGovernment SecuritiesPesos
    
    
    55.2
    
    
    
    7.4
    
    
    
    62.6
    
    
    
    146.6
    
    
    
    286.2
    
    
    
    432.8Dollars
    
    
    (11.0
    )
    
    
    (220.1
    )
    
    
    (231.1
    )
    
    
    (8.4
    )
    
    
    (17.8
    )
    
    
    (26.2
    )Total
    
    
    44.2
    
    
    
    (212.7
    )
    
    
    (168.5
    )
    
    
    138.2
    
    
    
    268.4
    
    
    
    406.6LoansPrivate SectorBanco Galicia and Regional
Credit Card CompaniesPesos
    
    
    795.3
    
    
    
    (162.0
    )
    
    
    633.3
    
    
    
    120.4
    
    
    
    172.8
    
    
    
    293.2Dollars
    
    
    303.1
    
    
    
    (327.3
    )
    
    
    (24.2
    )
    
    
    (3.4
    )
    
    
    11.1
    
    
    
    7.7Total
    
    
    1,098.4
    
    
    
    (489.3
    )
    
    
    609.1
    
    
    
    117.0
    
    
    
    183.9
    
    
    
    300.9CFAPesos
    
    
    319.4
    
    
    
    (*)
    
    
    
    319.4
    
    
    
    
    
    
    
    
    
    
    
    Dollars
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Total
    
    
    319.4
    
    
    
    
    
    
    
    319.4
    
    
    
    
    
    
    
    
    
    
    
    Public SectorPesos
    
    
    (14.1
    )
    
    
    (12.9
    )
    
    
    (27.0
    )
    
    
    (668.4
    )
    
    
    529.7
    
    
    
    (138.7
    )Dollars
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Total
    
    
    (14.1
    )
    
    
    (12.9
    )
    
    
    (27.0
    )
    
    
    (668.4
    )
    
    
    529.7
    
    
    
    (138.7
    )OtherPesos
    
    
    (8.9
    )
    
    
    (17.0
    )
    
    
    (25.9
    )
    
    
    (77.4
    )
    
    
    (8.4
    )
    
    
    (85.8
    )Dollars
    
    
    0.1
    
    
    
    (0.2
    )
    
    
    (0.1
    )
    
    
    (7.0
    )
    
    
    (4.2
    )
    
    
    (11.2
    )Total
    
    
    (8.8
    )
    
    
    (17.2
    )
    
    
    (26.0
    )
    
    
    (84.4
    )
    
    
    (12.6
    )
    
    
    (97.0
    )Total Interest-Earning AssetsPesos
    
    
    1,146.9
    
    
    
    (184.5
    )
    
    
    962.4
    
    
    
    (478.8
    )
    
    
    980.3
    
    
    
    501.5Dollars
    
    
    292.2
    
    
    
    (547.6
    )
    
    
    (255.4
    )
    
    
    (18.8
    )
    
    
    (10.9
    )
    
    
    (29.7
    )Total
    
    
    1,439.1
    
    
    
    (732.1
    )
    
    
    707.0
    
    
    
    (497.6
    )
    
    
    969.4
    
    
    
    471.8Interest Bearing LiabilitiesDemand AccountPesos
    
    
    (7.7
    )
    
    
    0.3
    
    
    
    (7.4
    )
    
    
    3.4
    
    
    
    (12.1
    )
    
    
    (8.7
    )Dollars
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Total
    
    
    (7.7
    )
    
    
    0.3
    
    
    
    (7.4
    )
    
    
    3.4
    
    
    
    (12.1
    )
    
    
    (8.7
    )Savings AccountPesos
    
    
    2.0
    
    
    
    
    
    
    
    2.0
    
    
    
    0.4
    
    
    
    0.6
    
    
    
    1.0Dollars
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Total
    
    
    2.0
    
    
    
    
    
    
    
    2.0
    
    
    
    0.4
    
    
    
    0.6
    
    
    
    1.0Time DepositsPesos
    
    
    212.3
    
    
    
    (313.7
    )
    
    
    (101.4
    )
    
    
    36.8
    
    
    
    56.5
    
    
    
    93.3Dollars
    
    
    2.6
    
    
    
    (10.0
    )
    
    
    (7.4
    )
    
    
    3.2
    
    
    
    (1.9
    )
    
    
    1.3Total
    
    
    214.9
    
    
    
    (323.7
    )
    
    
    (108.8
    )
    
    
    40.0
    
    
    
    54.6
    
    
    
    94.6With Other Financial EntitiesPesos
    
    
    18.0
    
    
    
    (1.5
    )
    
    
    16.5
    
    
    
    (11.8
    )
    
    
    2.8
    
    
    
    (9.0
    )Dollars
    
    
    4.2
    
    
    
    (6.1
    )
    
    
    (1.9
    )
    
    
    (33.9
    )
    
    
    3.6
    
    
    
    (30.3
    )Total
    
    
    22.2
    
    
    
    (7.6
    )
    
    
    14.6
    
    
    
    (45.7
    )
    
    
    6.4
    
    
    
    (39.3
    )Negotiable ObligationsPesos
    
    
    (11.1
    )
    
    
    (16.3
    )
    
    
    (27.4
    )
    
    
    (55.5
    )
    
    
    44.7
    
    
    
    (10.8
    )Dollars
    
    
    (19.5
    )
    
    
    51.1
    
    
    
    31.6
    
    
    
    8.7
    
    
    
    (53.7
    )
    
    
    (45.0
    )Total
    
    
    (30.6
    )
    
    
    34.8
    
    
    
    4.2
    
    
    
    (46.8
    )
    
    
    (9.0
    )
    
    
    (55.8
    )Other liabilitiesPesos
    
    
    (1.1
    )
    
    
    (0.4
    )
    
    
    (1.5
    )
    
    
    (5.2
    )
    
    
    (4.2
    )
    
    
    (9.4
    )Dollars
    
    
    (15.4
    )
    
    
    (9.8
    )
    
    
    (25.2
    )
    
    
    (20.2
    )
    
    
    (24.6
    )
    
    
    (44.8
    )Total
    
    
    (16.5
    )
    
    
    (10.2
    )
    
    
    (26.7
    )
    
    
    (25.4
    )
    
    
    (28.8
    )
    
    
    (54.2
    )Total Interest Bearing LiabilitiesPesos
    
    
    212.4
    
    
    
    (331.6
    )
    
    
    (119.2
    )
    
    
    (31.9
    )
    
    
    88.3
    
    
    
    56.4Dollars
    
    
    (28.1
    )
    
    
    25.2
    
    
    
    (2.9
    )
    
    
    (42.2
    )
    
    
    (76.6
    )
    
    
    (118.8
    )Total
    
    
    184.3
    
    
    
    (306.4
    )
    
    
    (122.1
    )
    
    
    (74.1
    )
    
    
    11.7
    
    
    
    (62.4
    )
 (*)
    
    Regarding CFAs loans and comparative disclosures for the year ended December 31, 2010, the information related to changes in volumes and rates is not
presented, due to the fact that average balances or interest amounts did not exist for these activities for the above-mentioned periods in 2009. CFAs loans
were included in 2010 information since its acquisition in June 2010.     -46-




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##### Table of Contents



Interest-Earning Assets-Net Yield on Interest-Earning Assets
  Fiscal Year Ended December 31,2010
    
    
    2009
    
    
    2008(in millions of Pesos, except percentages)Total Average Interest-Earning AssetsPesos
    
    
    18,534.2
    
    
    
    13,770.2
    
    
    
    14,182.4Dollars
    
    
    3,449.1
    
    
    
    4,607.8
    
    
    
    5,710.1Total
    
    
    21,983.3
    
    
    
    18,378.0
    
    
    
    19,892.5Net Interest Earned(1)Pesos
    
    
    2,796.1
    
    
    
    1,714.5
    
    
    
    1,269.4Dollars
    
    
    (294.9
    )
    
    
    (42.4
    )
    
    
    (131.5
    )Total
    
    
    2,501.2
    
    
    
    1,672.1
    
    
    
    1,137.9Net Yield on Interest-Earning Assets(2)(%)Pesos
    
    
    15.09
    
    
    
    12.45
    
    
    
    8.95Dollars
    
    
    (8.55
    )
    
    
    (0.92
    )
    
    
    (2.30
    )Weighted-Average Yield
    
    
    11.38
    
    
    
    9.10
    
    
    
    5.72Interest Spread, Nominal Basis(3)(%)Pesos
    
    
    11.81
    
    
    
    9.34
    
    
    
    5.59Dollars
    
    
    (5.81
    )
    
    
    0.49
    
    
    
    (1.69
    )Weighted-Average Yield
    
    
    9.79
    
    
    
    8.08
    
    
    
    4.00Credit Related Fees Included in Net Interest EarnedPesos
    
    
    109.5
    
    
    
    84.2
    
    
    
    69.9Dollars
    
    
    
    
    
    
    
    
    
    
    Total
    
    
    109.5
    
    
    
    84.2
    
    
    
    69.9
 (1)
    
    Net interest earned corresponds to the net financial income (Financial Income minus Financial Expenses, as set
forth in the Income Statement), plus (i) financial fees included in Income from Services  In Relation to Lending
Transactions in the Income Statement,(ii) contributions to the Deposits Insurance Fund included in the item with the same
denomination that is part of the Financial Expenses caption in the Income Statement, and (iii) contributions and taxes on
financial income included in the Income Statement under Financial Expenses  Others; minus (i) net income from corporate
securities, included under Financial Income/Expenses  Interest Income and Gains/Losses from Holdings of Government and
Corporate Securities, in the Income Statement,(ii) differences in quotation of gold and foreign currency included in the
item with the same denomination that is part of the Financial Expenses/Income caption in the Income Statement, and (iii)
the premiums and adjustments on forward transactions in foreign currency, included in the item Financial Income-Others in
the Income Statement. Net interest earned also includes income from government securities used as security margins in
repurchase agreement transactions. This income/loss is included in Miscellaneous Income/Loss  Others in the Income
Statement. Net income from government securities includes both interest and gains/losses due to the variation of market
quotations.(2)
    
    Net interest earned, divided by average interest-earning assets.(3)
    
    Interest spread, nominal basis is the difference between the average nominal interest rate on interest-earning assets
and the average nominal interest rate on interest-bearing deposits.  -47-




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##### Table of Contents



Government and Corporate Securities
  Fiscal Year Ended December 31,2010
    
    
    2009
    
    
    2008(in millions of Pesos)Government SecuritiesPesosInvestment
    
    
    133.7
    
    
    
    43.3
    
    
    
    22.8Issued by Argentine Central Bank  Lebac and Nobac
    
    
    
    
    
    
    43.3
    
    
    
    22.8Bonar Bonds
    
    
    133.7
    
    
    
    
    
    
    
    Trading
    
    
    38.4
    
    
    
    100.7
    
    
    
    233.7Bonar Bonds
    
    
    13.3
    
    
    
    42.7
    
    
    
    Bogar Bonds
    
    
    
    
    
    
    
    
    
    
    1.6Others
    
    
    25.1
    
    
    
    58.0
    
    
    
    232.1Issued by Argentine Central Bank
    
    
    2,065.7
    
    
    
    1,615.1
    
    
    
    550.2Lebac Unquoted
    
    
    257.5
    
    
    
    934.6
    
    
    
    Lebac Quoted
    
    
    359.1
    
    
    
    633.9
    
    
    
    Nobac Unquoted
    
    
    1,265.0
    
    
    
    29.5
    
    
    
    520.2Nobac Quoted
    
    
    3.9
    
    
    
    17.1
    
    
    
    30.0Lebac Repurchase Agreement Transactions
    
    
    180.2
    
    
    
    
    
    
    
    Without Quotation
    
    
    
    
    
    
    945.7
    
    
    
    69.8Bonar Bonds
    
    
    
    
    
    
    323.7
    
    
    
    Discount Bonds in Pesos
    
    
    
    
    
    
    622.0
    
    
    
    69.8Total Government Securities in Pesos
    
    
    2,237.8
    
    
    
    2,704.8
    
    
    
    876.5DollarsInvestment
    
    
    
    
    
    
    
    
    
    
    527.4Boden 2012 Bonds
    
    
    
    
    
    
    
    
    
    
    525.9Boden 2013 Bonds
    
    
    
    
    
    
    
    
    
    
    1.5Trading
    
    
    29.9
    
    
    
    13.5
    
    
    
    0.4Boden 2012 Bonds
    
    
    
    
    
    
    
    
    
    
    Others
    
    
    29.9
    
    
    
    13.5
    
    
    
    0.4Government Securities for Repurchase Agreement
Transactions with the Argentinte Central Bank
    
    
    
    
    
    
    152.7
    
    
    
    127.5Boden 2013  2015 Bonds
    
    
    
    
    
    
    
    
    
    
    127.5Bonar Bonds
    
    
    
    
    
    
    152.7
    
    
    
    Without Quotation
    
    
    
    
    
    
    1,036.2
    
    
    
    Boden 2012 Bonds
    
    
    
    
    
    
    1,032.4
    
    
    
    Others
    
    
    
    
    
    
    3.8
    
    
    
    Total Government Securities in Dollars
    
    
    29.9
    
    
    
    1,202.4
    
    
    
    655.3Total Government Securities
    
    
    2,267.7
    
    
    
    3,907.2
    
    
    
    1,531.8Corporate Securities
    
    
    10.3
    
    
    
    13.2
    
    
    
    0.1Corporate Equity Securities (Quoted) in Pesos
    
    
    10.3
    
    
    
    0.1
    
    
    
    0.1Corporate Equity Securities (Quoted) in Dollars
    
    
    
    
    
    
    13.1
    
    
    
    Total Government and Corporate Securities
    
    
    2,278.0
    
    
    
    3,920.4
    
    
    
    1,531.9
      -48-




---



##### Table of Contents



Government Securities  Net Position
  As of December 31, 2010Spot
    
    
    SpotForward
    
    
    Forward
    
    
    purchases
    
    
    sales
    
    
    NetHoldings
    
    
    Purchases
    
    
    Sales
    
    
    to be settled
    
    
    to be settled
    
    
    Position(in millions of Pesos)Government SecuritiesInvestment PortfolioPesos
    
    
    133.7
    
    
    
    508.4
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    642.1Trading or Financial Brokerage PortfolioPesos
    
    
    38.4
    
    
    
    
    
    
    
    
    
    
    
    0.2
    
    
    
    7.7
    
    
    
    30.9Dollars
    
    
    29.9
    
    
    
    
    
    
    
    
    
    
    
    11.8
    
    
    
    14.4
    
    
    
    27.3Securities issued by the Argentine Central BankPesos
    
    
    2,065.7
    
    
    
    399.4
    
    
    
    180.2
    
    
    
    32.2
    
    
    
    24.0
    
    
    
    2,293.1Dollars
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Other Provided as Collateral
    
    
    
    
    
    
    118.3
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    118.3Total Government Securities
    
    
    2,267.7
    
    
    
    1,026.1
    
    
    
    180.2
    
    
    
    44.2
    
    
    
    46.1
    
    
    
    3,111.7Corporate Equity Securities (Quoted)
    
    
    10.3
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    10.3Total Government and Corporate Securities
    
    
    2,278.0
    
    
    
    1,026.1
    
    
    
    180.2
    
    
    
    44.2
    
    
    
    46.1
    
    
    
    3,122.0
     Remaining Maturity and Weighted-Average Yield
  Maturity Yield
 Maturing after 1
    
    
    Maturing after 5Maturing
    
    
    year but within
    
    
    years but within
    
    
    MaturingTotal
    
    
    within 1 year
    
    
    5 years
    
    
    10 years
    
    
    after 10 yearsBook
    
    
    Book
    
    
    
    
    
    
    Book
    
    
    
    
    
    
    Book
    
    
    
    
    
    
    BookValue
    
    
    Value
    
    
    Yield(1)
    
    
    Value
    
    
    Yield(1)
    
    
    Value
    
    
    Yield(1)
    
    
    Value
    
    
    Yield(1)(in millions of Pesos, except percentages)Government SecuritiesHeld for Trading and BrokeragePurposes (carried at market value)Pesos
    
    
    38.4
    
    
    
    2.0
    
    
    
    6.7
    %
    
    
    27.5
    
    
    
    10.1
    %
    
    
    1.0
    
    
    
    11.4
    %
    
    
    7.9
    
    
    
    10.8
    %Dollars
    
    
    29.9
    
    
    
    5.6
    
    
    
    3.1
    %
    
    
    24.3
    
    
    
    4.3
    %
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    10.1
    %Held for Investment (carried at amortized cost)Pesos
    
    
    133.7
    
    
    
    
    
    
    
    17.3
    %
    
    
    133.7
    
    
    
    17.3
    %
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Instruments Issued by the Argentine Central
BankPesos
    
    
    2,065.7
    
    
    
    2,065.7
    
    
    
    10.5
    %
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Securities Without QuotationPesos
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Dollars
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Total Government Securities
    
    
    2,267.7
    
    
    
    2,073.3
    
    
    
    10.5
    %
    
    
    185.5
    
    
    
    14.5
    %
    
    
    1.0
    
    
    
    10.4
    %
    
    
    7.9
    
    
    
    10.8
    %Corporate Debt Securities
    
    
    10.3
    
    
    
    10.3
    
    
    
    8.0
    %
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Total Portfolio
    
    
    2,278.0
    
    
    
    2,083.6
    
    
    
    10.5
    %
    
    
    185.5
    
    
    
    14.5
    %
    
    
    1.0
    
    
    
    10.4
    %
    
    
    7.9
    
    
    
    10.8
    %
 (1)
    
    Effective yield based on December 31, 2010 quoted market values.  -49-




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##### Table of Contents



December 31, 2010
 In millions of Pesos
    
    Issuer
    
    Book Value
    
    
    Market ValueSecurities issued
by the Argentine
Central Bank
    
    Argentine Central Bank
    
    
    2,411.4
    
    
    
    2,405.6Total
    
    
    
    
    2,411.4
    
    
    
    2,405.6
 Loan Portfolio
  As of December 31,2010
    
    
    2009
    
    
    2008
    
    
    2007
    
    
    2006(in millions of Pesos)Principal and InterestNon-Financial Public Sector
    
    
    3.2
    
    
    
    5.0
    
    
    
    1,319.6
    
    
    
    1,210.5
    
    
    
    2,690.6Local Financial Sector
    
    
    80.6
    
    
    
    25.4
    
    
    
    148.1
    
    
    
    110.0
    
    
    
    311.6Non-Financial Private Sector and Residents Abroad (1)Advances
    
    
    979.2
    
    
    
    630.1
    
    
    
    594.4
    
    
    
    792.1
    
    
    
    346.3Promissory Notes
    
    
    4,534.3
    
    
    
    3,205.4
    
    
    
    2,116.3
    
    
    
    2,911.2
    
    
    
    2,143.7Mortgage Loans
    
    
    950.2
    
    
    
    964.3
    
    
    
    1,026.8
    
    
    
    945.1
    
    
    
    688.0Pledge Loans
    
    
    119.2
    
    
    
    64.8
    
    
    
    81.0
    
    
    
    94.5
    
    
    
    67.1Personal Loans (2)
    
    
    4,093.6
    
    
    
    1,724.4
    
    
    
    1,217.6
    
    
    
    977.9
    
    
    
    563.2Credit Card Loans
    
    
    9,120.1
    
    
    
    5,691.3
    
    
    
    4,378.4
    
    
    
    3,630.1
    
    
    
    2,458.6Placements in Banks Abroad
    
    
    215.3
    
    
    
    440.7
    
    
    
    334.5
    
    
    
    158.0
    
    
    
    608.0Other Loans
    
    
    2,081.2
    
    
    
    1,387.9
    
    
    
    883.3
    
    
    
    1,010.8
    
    
    
    794.8Accrued Interest, Adjustment and Quotation Differences
Receivable
    
    
    277.1
    
    
    
    178.8
    
    
    
    185.8
    
    
    
    177.0
    
    
    
    155.0Documented Interest
    
    
    (81.8
    )
    
    
    (54.2
    )
    
    
    (38.5
    )
    
    
    (42.5
    )
    
    
    (23.3
    )Total Non-Financial Private-Sector and Residents Abroad
    
    
    22,288.4
    
    
    
    14,233.5
    
    
    
    10,779.6
    
    
    
    10,654.2
    
    
    
    7,801.4Total Gross Loans
    
    
    22,372.2
    
    
    
    14,263.9
    
    
    
    12,247.3
    
    
    
    11,974.7
    
    
    
    10,803.6Allowance for Loan Losses
    
    
    (1,038.5
    )
    
    
    (806.4
    )
    
    
    (526.8
    )
    
    
    (428.6
    )
    
    
    (327.0
    )Total Loans
    
    
    21,333.7
    
    
    
    13,457.5
    
    
    
    11,720.5
    
    
    
    11,546.1
    
    
    
    10,476.6Loans with GuaranteesWith Preferred Guarantees (3)
    
    
    1,257.1
    
    
    
    1,142.2
    
    
    
    1,332.8
    
    
    
    1,289.8
    
    
    
    1,076.2Other Guarantees
    
    
    3,694.5
    
    
    
    2,453.9
    
    
    
    2,971.1
    
    
    
    3,180.2
    
    
    
    4,103.6Total Loans with Guarantees
    
    
    4,951.6
    
    
    
    3,596.1
    
    
    
    4,303.9
    
    
    
    4,470.0
    
    
    
    5,179.8
 (1)
    
    Categories of loans include: 
    
    Advances: short-term obligations drawn on by customers through overdrafts.
  -50-




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##### Table of Contents




    
    Promissory Notes: endorsed promissory notes, negotiable obligations and other promises to pay signed by one borrower or group of borrowers and factored loans.
    
    Mortgage Loans: loans granted to purchase or improve real estate and collateralized by such real estate and commercial loans secured by a real estate mortgage.
    
    Pledge Loans: loans secured by collateral (such as cars or machinery) other than real estate, where such collateral is an integral part of the loan documents.
    
    Personal Loans: loans to individuals.
    
    Credit-Card Loans: loans granted through credit cards to credit card holders.
    
    Placements in Banks Abroad: short-term loans to banks abroad.
    
    Other Loans: loans not included in other categories.
    
    Documented Interest: discount on notes and bills.
 (2)
    
    As of December 31, 2010 includes loans incorporated as a consequence of the acquisition of CFA.(3)
    
    Preferred guarantees include mortgages on real estate property or pledges on movable property, such as cars or machinery, where Banco Galicia has priority, endorsements of
the Federal Office of the Secretary of Finance, pledges of Government securities, or gold or cash as collateral.     Loans by Type of Borrower
  As of December 31,2010
    
    
    2009
    
    
    2008Amount
    
    
    % of Total
    
    
    Amount
    
    
    % of Total
    
    
    Amount
    
    
    % of Total(in millions of Pesos, except percentages)Corporate
    
    
    2,768.1
    
    
    
    12.37
    
    
    
    1,801.1
    
    
    
    12.63
    
    
    
    1,148.6
    
    
    
    9.38Middle-Market Companies
    
    
    6,641.9
    
    
    
    29.69
    
    
    
    4,844.5
    
    
    
    33.96
    
    
    
    3,716.8
    
    
    
    30.35- Agribusiness
    
    
    2,458.2
    
    
    
    10.99
    
    
    
    1,962.9
    
    
    
    13.76
    
    
    
    1,461.4
    
    
    
    11.93- SMEs
    
    
    4,183.8
    
    
    
    18.70
    
    
    
    2,881.6
    
    
    
    20.20
    
    
    
    2,255.4
    
    
    
    18.42Commercial Loans
    
    
    9,410.0
    
    
    
    42.06
    
    
    
    6,645.6
    
    
    
    46.59
    
    
    
    4,865.4
    
    
    
    39.73Individuals
    
    
    12,640.9
    
    
    
    56.51
    
    
    
    7,142.8
    
    
    
    50.07
    
    
    
    5,578.3
    
    
    
    45.55- Bank
    
    
    6,807.0
    
    
    
    30.43
    
    
    
    4,296.4
    
    
    
    30.12
    
    
    
    3,232.0
    
    
    
    26.39- Regional Credit Card Companies
    
    
    4,455.9
    
    
    
    19.92
    
    
    
    2,846.4
    
    
    
    19.95
    
    
    
    2,346.3
    
    
    
    19.16- CFA
    
    
    1,378.0
    
    
    
    6.16
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Financial Sector (1)
    
    
    318.0
    
    
    
    1.42
    
    
    
    470.5
    
    
    
    3.30
    
    
    
    484.0
    
    
    
    3.95Non-Financial Public Sector
    
    
    3.2
    
    
    
    0.01
    
    
    
    5.0
    
    
    
    0.04
    
    
    
    1,319.6
    
    
    
    10.77Total(2)
    
    
    22,372.1
    
    
    
    100.00
    
    
    
    14,263.9
    
    
    
    100.00
    
    
    
    12,247.3
    
    
    
    100.00
 (1)
    
    Includes local and international financial sector. Financial Sector loans are primarily composed of interbank loans
(call money loans), overnight deposits at international money center banks and loans to provincial banks.(2)
    
    Before the allowance for loan losses.  -51-




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##### Table of Contents



Loans by Economic Activity
  As of December 31,2010
    
    
    2009
    
    
    2008Amount
    
    
    % of Total
    
    
    Amount
    
    
    % of Total
    
    
    Amount
    
    
    % of Total(in millions of Pesos, except percentages)Financial Sector(1)
    
    
    318.0
    
    
    
    1.42
    
    
    
    470.5
    
    
    
    3.30
    
    
    
    484.0
    
    
    
    3.95ServicesNon-Financial Public Sector
    
    
    3.2
    
    
    
    0.01
    
    
    
    5.0
    
    
    
    0.04
    
    
    
    1,319.6
    
    
    
    10.77Communications, Transportation Health and Others
    
    
    1,315.3
    
    
    
    5.88
    
    
    
    1,020.2
    
    
    
    7.15
    
    
    
    838.3
    
    
    
    6.84Electricity, Gas, Water Supply and Sewage
Services
    
    
    111.2
    
    
    
    0.50
    
    
    
    43.7
    
    
    
    0.31
    
    
    
    30.7
    
    
    
    0.25Other Financial Services
    
    
    54.0
    
    
    
    0.24
    
    
    
    12.8
    
    
    
    0.09
    
    
    
    44.5
    
    
    
    0.37Total
    
    
    1,483.7
    
    
    
    6.63
    
    
    
    1,081.7
    
    
    
    7.59
    
    
    
    2,233.1
    
    
    
    18.23Primary ProductsAgriculture and Livestock
    
    
    2,268.0
    
    
    
    10.14
    
    
    
    1,803.8
    
    
    
    12.65
    
    
    
    1,274.5
    
    
    
    10.41Fishing, Forestry and Mining
    
    
    199.3
    
    
    
    0.89
    
    
    
    177.8
    
    
    
    1.25
    
    
    
    60.9
    
    
    
    0.49Total
    
    
    2,467.3
    
    
    
    11.03
    
    
    
    1,981.6
    
    
    
    13.90
    
    
    
    1,335.4
    
    
    
    10.90Consumer
    
    
    12,232.7
    
    
    
    54.68
    
    
    
    6,781.5
    
    
    
    47.54
    
    
    
    5,294.9
    
    
    
    43.23Retail Trade
    
    
    906.2
    
    
    
    4.05
    
    
    
    719.5
    
    
    
    5.04
    
    
    
    537.2
    
    
    
    4.39Wholesale Trade
    
    
    1,532.8
    
    
    
    6.85
    
    
    
    931.4
    
    
    
    6.53
    
    
    
    647.0
    
    
    
    5.28Construction
    
    
    318.1
    
    
    
    1.42
    
    
    
    177.0
    
    
    
    1.24
    
    
    
    82.2
    
    
    
    0.67ManufacturingFoodstuffs
    
    
    1,098.4
    
    
    
    4.91
    
    
    
    773.2
    
    
    
    5.42
    
    
    
    533.6
    
    
    
    4.36Transportation Materials
    
    
    70.9
    
    
    
    0.32
    
    
    
    41.9
    
    
    
    0.29
    
    
    
    81.5
    
    
    
    0.67Chemicals and Oil
    
    
    454.3
    
    
    
    2.03
    
    
    
    378.3
    
    
    
    2.65
    
    
    
    293.2
    
    
    
    2.39Manufacturing Industries
    
    
    1,388.7
    
    
    
    6.21
    
    
    
    891.5
    
    
    
    6.25
    
    
    
    682.6
    
    
    
    5.57Total
    
    
    3,012.3
    
    
    
    13.47
    
    
    
    2,084.9
    
    
    
    14.61
    
    
    
    1,590.9
    
    
    
    12.99Other Loans
    
    
    101.1
    
    
    
    0.45
    
    
    
    35.8
    
    
    
    0.25
    
    
    
    42.6
    
    
    
    0.36Total(2)
    
    
    22,372.2
    
    
    
    100.00
    
    
    
    14,263.9
    
    
    
    100.00
    
    
    
    12,247.3
    
    
    
    100.00
 (1)
    
    Includes local and international financial sectors.(2)
    
    Before the allowance for loan losses.  -52-




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##### Table of Contents



Maturity Composition of the Loan Portfolio
  After 1
    
    
    After 6
    
    
    
    
    
    
    After 3Month but
    
    
    Months but
    
    
    After 1 Year
    
    
    Years but
    
    
    
    
    
    
    Total atWithin 1
    
    
    within 6
    
    
    within 12
    
    
    but within 3
    
    
    within 5
    
    
    After 5
    
    
    DecemberMonth
    
    
    Months
    
    
    Months
    
    
    Years
    
    
    Years
    
    
    Years
    
    
    31, 2010(in millions of Pesos)Non-Financial Public Sector(1)
    
    
    3.2
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    3.2Financial Sector(1)
    
    
    80.6
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    80.6Private Sector and Residents Abroad
    
    
    11,620.2
    
    
    
    5,264.4
    
    
    
    1,969.3
    
    
    
    2,485.3
    
    
    
    771.4
    
    
    
    177.8
    
    
    
    22,288.4- Advances
    
    
    685.7
    
    
    
    280.0
    
    
    
    12.8
    
    
    
    0.8
    
    
    
    
    
    
    
    
    
    
    
    979.2- Promissory Notes
    
    
    1,847.3
    
    
    
    1,905.9
    
    
    
    369.1
    
    
    
    338.6
    
    
    
    67.2
    
    
    
    6.2
    
    
    
    4,534.3- Mortgage Loans
    
    
    30.6
    
    
    
    91.9
    
    
    
    94.6
    
    
    
    340.0
    
    
    
    243.7
    
    
    
    149.4
    
    
    
    950.2- Pledge Loans
    
    
    8.1
    
    
    
    21.5
    
    
    
    22.1
    
    
    
    59.8
    
    
    
    6.7
    
    
    
    0.9
    
    
    
    119.1- Personal Loans
    
    
    247.0
    
    
    
    957.9
    
    
    
    866.8
    
    
    
    1,546.8
    
    
    
    453.8
    
    
    
    21.3
    
    
    
    4,093.6- Credit-Card Loans
    
    
    6,620.4
    
    
    
    1,811.8
    
    
    
    569.1
    
    
    
    118.7
    
    
    
    
    
    
    
    
    
    
    
    9,120.1- Other Loans
    
    
    1,986.8
    
    
    
    195.4
    
    
    
    34.8
    
    
    
    80.6
    
    
    
    
    
    
    
    
    
    
    
    2,297.6- Accrued Interest and QuotationDifferences Receivable (1)
    
    
    277.1
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    277.1- (Documented Interest)
    
    
    (81.8
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (81.8
    )- (Unallocated Collections)
    
    
    (1.0
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (1.0
    )Allowance for Loan Losses(2)
    
    
    (1,038.5
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (1,038.5
    )Total Loans, Net
    
    
    10,665.5
    
    
    
    5,264.4
    
    
    
    1,969.3
    
    
    
    2,485.3
    
    
    
    771.4
    
    
    
    177.8
    
    
    
    21,333.7
 (1)
    
    Interest and the CER adjustment were assigned to the first month.(2)
    
    Allowances were assigned to the first month as were past due loans and loans in judicial proceedings. Interest Rate Sensitivity of Outstanding Loans
  In millions of Pesos
    
    
    As a % of Total LoansVariable Rate (1)(2)Pesos
    
    
    922.7
    
    
    
    26.87
    %Dollars
    
    
    202.0
    
    
    
    5.88
    %Total
    
    
    1,124.7
    
    
    
    32.75
    %Fixed Rate (2)(3)Pesos
    
    
    2,203.5
    
    
    
    64.15
    %Dollars
    
    
    106.3
    
    
    
    3.10
    %Total
    
    
    2,309.8
    
    
    
    67.25
    %Past Due LoansPesos
    
    
    
    
    
    
    Dollars
    
    
    
    
    
    
    Total
    
    
    
    
    
    
    
 (1)
    
    Includes overdraft loans.(2)
    
    Includes past due loans and excludes interest receivable, differences in quotations and the CER adjustment.(3)
    
    Includes short-term and long-term loans whose rates are determined at the beginning of the loans life.  -53-




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##### Table of Contents



Credit Review Process
   Banco Galicia
          -54-




---



##### Table of Contents



Qualitative Analysis
    
    Assessment of the corporate borrowers creditworthiness
performed by the officer in charge of the account based on
personal knowledge.Economic and Financial Risk
    
    Quantitative analysis of the borrowers balance sheet amounts.Economic Risk of the Sector
    
    Measurement of the general risk of the financial sector where
the borrower operates (based on statistical information,
internal and external).Environmental Risk
    
    Environmental impact analysis (required for all investment
projects of significant amounts).
       -55-




---



##### Table of Contents



Regional Credit Card Companies
    CFA
   Main Argentine Central Banks Rules on Loan Classification and Loan Loss Provisions
 General
      -56-




---



##### Table of Contents



-57-




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##### Table of Contents



Refinancing
    
    
    Judicial AgreementsMonthly or
    
    Others
    
    
    Previous
    
    
    Com. ABimonthly
    
    Previous %
    
    
    Com. A 4975
    
    
    %
    
    
    4975Category change from 5 to 4
    
    3 installments
    
    
    20
    %
    
    
    15
    %Category change from 4 to 3
    
    3 installments
    
    
    15
    %
    
    
    10
    %Category change from 3 to 2
    
    2 installments
    
    
    10
    %
    
    
    5
    %
    
    
    20
    %
    
    
    15
    %Category change from 2 to 1
    
    1 installment
    
    
    10
    %
    
    
    5
    %
    
    
    20
    %
    
    
    15
    %
    Loan Classification
   -58-




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##### Table of Contents



Commercial Portfolio
 Loan Classification
    
    Description1. Normal Situation
    
    The debtor is widely able to meet its financial obligations, demonstrating significant cash flows, a liquid financial situation, an adequate financial structure, a timely
payment record, competent management, available information in a timely, accurate manner and satisfactory internal controls. The debtor is in the upper 50% of a sector of
activity that is operating properly and has good prospects.2. With Special Follow-up
    
    Cash flow analysis reflects that the debt may be repaid even though it is possible that the customers future payment ability may deteriorate without a proper follow-up.This category is divided into two subcategories:(2.a). Under Observation;(2.b). Under Negotiation or Refinancing Agreements.3. With Problems
    
    Cash flow analysis evidences problems to repay the debt, and therefore, if these problems are not solved, there may be some losses.4. High Risk of Insolvency
    
    Cash flow analysis evidences that repayment of the full debt is highly unlikely.5. Uncollectible
    
    The amounts in this category are deemed total losses. Even though these assets may be recovered under certain future circumstances, inability to make payments is evident at
the date of the analysis. It includes loans to insolvent or bankrupt borrowers.6. Uncollectible due to Technical Reasons
    
    Loans to borrowers indicated by the Argentine Central Bank to be in non-accrual status with financial institutions that have been liquidated or are being liquidated, or whose
authorization to operate has been revoked. It also includes loans to foreign banks and other institutions that are not:(i)   classified as normal;(ii)  subject to the supervision of the Argentine Central Bank or other similar authority of the country of origin;(iii) classified as investment grade by any of the rating agencies admitted pursuant to Communiqué A 2729 of the Argentine Central Bank.
 Consumer Portfolio
 Loan Classification
    
    Description1. Normal Situation
    
    Loans with timely repayment or arrears not exceeding 31 days, both of principal and interest.2. Low Risk
    
    Occasional late payments, with a payment in arrears of more than 32 days and up to 90 days.
A customer classified as Normal having been refinanced may be recategorized within this
category, as long as he amortizes one principal installment (whether monthly or bimonthly)
or repays 5% of principal.3. Medium Risk
    
    Some inability to make payments, with arrears of more than 91 days and up to 180 days. A
customer classified as Low Risk having been refinanced may be recategorized within this
category, as long as he amortizes two principal installments (whether monthly or bimonthly)
or repays 5% of principal.4. High Risk
    
    Judicial proceedings demanding payment have been initiated or arrears of more than 180 days
and up to one year. A customer classified as Medium Risk having been refinanced may be
recategorized within this category, as long as he amortizes three principal installments
(whether monthly or bimonthly) or repays 10% of principal.5. Uncollectible
    
    Loans to insolvent or bankrupt borrowers, or subject to judicial proceedings, with little or
no possibility of collection, or with arrears in excess of one year.6. Uncollectible due to Technical Reasons
    
    Loans to borrowers who fall within the conditions described above under Commercial
Portfolio-Uncollectible due to Technical Reasons
  -59-




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##### Table of Contents



Loan Loss Provision Requirements
 Allocated Provisions
 Minimum Allowances for Loan Losses
 Category
    
    Secured
    
    
    Unsecured1. Normal Situation
    
    
    1.0
    %
    
    
    1.0
    %2. (a) Under Observation and Low Risk
    
    
    3.0
    %
    
    
    5.0
    %2. (b) Under Negotiation or Refinancing Agreements
    
    
    6.0
    %
    
    
    12.0
    %3. With Problems and Medium Risk
    
    
    12.0
    %
    
    
    25.0
    %4. High Risk of Insolvency and High Risk
    
    
    25.0
    %
    
    
    50.0
    %5. Uncollectible
    
    
    50.0
    %
    
    
    100.0
    %6. Uncollectible Due to Technical Reasons
    
    
    100.0
    %
    
    
    100.0
    %
  General Provisions
    -60-




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##### Table of Contents



Classification of the Loan Portfolio based on Argentine Central Bank Regulations
  As of December 31, 2010Amounts Not Yet Due
    
    
    Amounts Past Due
    
    
    Total Loans(in millions of Pesos, except percentages)Amounts
    
    
    %
    
    
    Amounts
    
    
    %
    
    
    Amounts
    
    
    %Loan Portfolio Classification1. Normal and Normal Performance
    
    
    21,230.1
    
    
    
    97.40
    
    
    
    
    
    
    
    
    
    
    
    21,230.1
    
    
    
    94.902. With Special Follow-up  Under observation and Low Risk
    
    
    387.2
    
    
    
    1.78
    
    
    
    
    
    
    
    
    
    
    
    387.2
    
    
    
    1.733. With Problems and Medium Risk
    
    
    114.2
    
    
    
    0.52
    
    
    
    144.6
    
    
    
    25.11
    
    
    
    258.8
    
    
    
    1.154. High Risk of Insolvency and High Risk
    
    
    64.8
    
    
    
    0.30
    
    
    
    251.7
    
    
    
    43.71
    
    
    
    316.5
    
    
    
    1.415. Uncollectible
    
    
    
    
    
    
    
    
    
    
    178.4
    
    
    
    30.98
    
    
    
    178.4
    
    
    
    0.806. Uncollectible Due to Technical Reasons
    
    
    
    
    
    
    
    
    
    
    1.2
    
    
    
    0.20
    
    
    
    1.2
    
    
    
    0.01Total
    
    
    21,796.3
    
    
    
    100.00
    
    
    
    575.9
    
    
    
    100.00
    
    
    
    22,372.2
    
    
    
    100.00
 As of December 31, 2009Amounts Not Yet Due
    
    
    Amounts Past Due
    
    
    Total Loans(in millions of Pesos, except percentages)Amounts
    
    
    %
    
    
    Amounts
    
    
    %
    
    
    Amounts
    
    
    %Loan Portfolio Classification1. Normal and Normal Performance
    
    
    13,273.6
    
    
    
    96.89
    
    
    
    
    
    
    
    
    
    
    
    13,273.6
    
    
    
    93.062. With Special Follow-up  Under observation and Low Risk
    
    
    310.6
    
    
    
    2.27
    
    
    
    
    
    
    
    
    
    
    
    310.6
    
    
    
    2.183. With Problems and Medium Risk
    
    
    85.1
    
    
    
    0.62
    
    
    
    146.2
    
    
    
    25.92
    
    
    
    231.3
    
    
    
    1.624. High Risk of Insolvency and High Risk
    
    
    30.5
    
    
    
    0.22
    
    
    
    308.1
    
    
    
    54.62
    
    
    
    338.6
    
    
    
    2.375. Uncollectible
    
    
    
    
    
    
    
    
    
    
    109.0
    
    
    
    19.32
    
    
    
    109.0
    
    
    
    0.766. Uncollectible Due to Technical Reasons
    
    
    
    
    
    
    
    
    
    
    0.8
    
    
    
    0.14
    
    
    
    0.8
    
    
    
    0.01Total
    
    
    13,699.8
    
    
    
    100.00
    
    
    
    564.1
    
    
    
    100.00
    
    
    
    14,263.9
    
    
    
    100.00
 As of December 31, 2008Amounts Not Yet Due
    
    
    Amounts Past Due
    
    
    Total Loans(in millions of Pesos, except percentages)Amounts
    
    
    %
    
    
    Amounts
    
    
    %
    
    
    Amounts
    
    
    %Loan Portfolio Classification1. Normal and Normal Performance
    
    
    11,430.6
    
    
    
    96.09
    
    
    
    
    
    
    
    
    
    
    
    11,430.6
    
    
    
    93.332. With Special Follow-up  Under observation and Low Risk
    
    
    388.8
    
    
    
    3.27
    
    
    
    
    
    
    
    
    
    
    
    388.8
    
    
    
    3.183. With Problems and Medium Risk
    
    
    54.1
    
    
    
    0.46
    
    
    
    103.1
    
    
    
    29.29
    
    
    
    157.2
    
    
    
    1.284. High Risk of Insolvency and High Risk
    
    
    21.8
    
    
    
    0.18
    
    
    
    185.4
    
    
    
    52.67
    
    
    
    207.2
    
    
    
    1.695. Uncollectible
    
    
    
    
    
    
    
    
    
    
    62.0
    
    
    
    17.61
    
    
    
    62.0
    
    
    
    0.516. Uncollectible Due to Technical Reasons
    
    
    
    
    
    
    
    
    
    
    1.5
    
    
    
    0.43
    
    
    
    1.5
    
    
    
    0.01Total
    
    
    11,895.3
    
    
    
    100.00
    
    
    
    352.0
    
    
    
    100.00
    
    
    
    12,247.3
    
    
    
    100.00
 As of December 31, 2007Amounts Not Yet Due
    
    
    Amounts Past Due
    
    
    Total Loans(in millions of Pesos, except percentages)Amounts
    
    
    %
    
    
    Amounts
    
    
    %
    
    
    Amounts
    
    
    %Loan Portfolio Classification1. Normal and Normal Performance
    
    
    11,242.7
    
    
    
    96.57
    
    
    
    
    
    
    
    
    
    
    
    11,242.7
    
    
    
    93.892. With Special Follow-up  Under observation and Low Risk
    
    
    356.2
    
    
    
    3.06
    
    
    
    
    
    
    
    
    
    
    
    356.2
    
    
    
    2.973. With Problems and Medium Risk
    
    
    31.7
    
    
    
    0.27
    
    
    
    56.0
    
    
    
    16.87
    
    
    
    87.7
    
    
    
    0.734. High Risk of Insolvency and High Risk
    
    
    12.1
    
    
    
    0.10
    
    
    
    221.0
    
    
    
    66.57
    
    
    
    233.1
    
    
    
    1.955. Uncollectible
    
    
    
    
    
    
    
    
    
    
    48.1
    
    
    
    14.49
    
    
    
    48.1
    
    
    
    0.406. Uncollectible Due to Technical Reasons
    
    
    
    
    
    
    
    
    
    
    6.9
    
    
    
    2.07
    
    
    
    6.9
    
    
    
    0.06Total
    
    
    11,642.7
    
    
    
    100.00
    
    
    
    332.0
    
    
    
    100.00
    
    
    
    11,974.7
    
    
    
    100.00
  -61-




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##### Table of Contents



As of December 31, 2006Amounts Not Yet Due
    
    
    Amounts Past Due
    
    
    Total Loans(in millions of Pesos, except percentages)Amounts
    
    
    %
    
    
    Amounts
    
    
    %
    
    
    Amounts
    
    
    %Loan Portfolio Classification1. Normal and Normal Performance
    
    
    10,149.9
    
    
    
    96.24
    
    
    
    
    
    
    
    
    
    
    
    10,149.9
    
    
    
    93.942. With Special Follow-up  Under observation and Low Risk
    
    
    374.6
    
    
    
    3.54
    
    
    
    
    
    
    
    
    
    
    
    374.6
    
    
    
    3.473. With Problems and Medium Risk
    
    
    12.2
    
    
    
    0.12
    
    
    
    30.0
    
    
    
    11.69
    
    
    
    42.2
    
    
    
    0.394. High Risk of Insolvency and High Risk
    
    
    10.2
    
    
    
    0.10
    
    
    
    192.7
    
    
    
    75.07
    
    
    
    202.9
    
    
    
    1.885. Uncollectible
    
    
    
    
    
    
    
    
    
    
    28.8
    
    
    
    11.22
    
    
    
    28.8
    
    
    
    0.276. Uncollectible Due to Technical Reasons
    
    
    
    
    
    
    
    
    
    
    5.2
    
    
    
    2.02
    
    
    
    5.2
    
    
    
    0.05Total
    
    
    10,546.9
    
    
    
    100.00
    
    
    
    256.7
    
    
    
    100.00
    
    
    
    10,803.6
    
    
    
    100.00
 Amounts Past Due and Non-Accrual Loans
  As of December 31,2010
    
    
    2009
    
    
    2008
    
    
    2007
    
    
    2006(in millions of Pesos, except ratios)Total Loans(1)
    
    
    22,372.2
    
    
    
    14,263.9
    
    
    
    12,247.3
    
    
    
    11,974.7
    
    
    
    10,803.6Non-Accrual Loans(2)With Preferred Guarantees
    
    
    27.9
    
    
    
    33.7
    
    
    
    42.0
    
    
    
    43.5
    
    
    
    40.2With Other Guarantees
    
    
    37.4
    
    
    
    97.9
    
    
    
    10.3
    
    
    
    5.0
    
    
    
    5.1Without Guarantees
    
    
    689.6
    
    
    
    548.1
    
    
    
    375.6
    
    
    
    327.3
    
    
    
    233.8Total Non-Accrual Loans(2)
    
    
    754.9
    
    
    
    679.7
    
    
    
    427.9
    
    
    
    375.8
    
    
    
    279.1Past Due Loan PortfolioNon-Financial Public Sector
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Local Financial Sector
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Non-Financial Private Sector and Residents AbroadAdvances
    
    
    94.3
    
    
    
    64.4
    
    
    
    25.9
    
    
    
    23.0
    
    
    
    20.9Promissory Notes
    
    
    53.1
    
    
    
    90.5
    
    
    
    24.5
    
    
    
    134.5
    
    
    
    135.2Mortgage Loans
    
    
    16.0
    
    
    
    16.8
    
    
    
    24.9
    
    
    
    30.0
    
    
    
    28.4Pledge Loans
    
    
    6.8
    
    
    
    2.7
    
    
    
    1.1
    
    
    
    0.8
    
    
    
    0.3Personal Loans
    
    
    131.2
    
    
    
    69.8
    
    
    
    45.7
    
    
    
    17.6
    
    
    
    4.1Credit-Card Loans
    
    
    237.8
    
    
    
    285.9
    
    
    
    215.0
    
    
    
    115.4
    
    
    
    62.7Placements with Correspondent Banks
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Other Loans
    
    
    36.7
    
    
    
    34.0
    
    
    
    14.9
    
    
    
    10.7
    
    
    
    5.1Total Past Due Loans
    
    
    575.9
    
    
    
    564.1
    
    
    
    352.0
    
    
    
    332.0
    
    
    
    256.7Past Due LoansWith Preferred Guarantees
    
    
    19.1
    
    
    
    19.8
    
    
    
    26.0
    
    
    
    30.8
    
    
    
    28.9With Other Guarantees
    
    
    35.1
    
    
    
    66.9
    
    
    
    9.0
    
    
    
    4.2
    
    
    
    4.3Without Guarantees
    
    
    521.7
    
    
    
    477.4
    
    
    
    317.0
    
    
    
    297.0
    
    
    
    223.5Total Past Due Loans
    
    
    575.9
    
    
    
    564.1
    
    
    
    352.0
    
    
    
    332.0
    
    
    
    256.7Allowance for Loan Losses
    
    
    1,038.5
    
    
    
    806.4
    
    
    
    526.8
    
    
    
    428.6
    
    
    
    327.0Ratios (%)As a % of Total Loans:- Total Past Due Loans
    
    
    2.57
    
    
    
    3.95
    
    
    
    2.87
    
    
    
    2.77
    
    
    
    2.38- Past Due Loans with Preferred Guarantees
    
    
    0.09
    
    
    
    0.14
    
    
    
    0.21
    
    
    
    0.26
    
    
    
    0.27- Past Due Loans with Other Guarantees
    
    
    0.16
    
    
    
    0.47
    
    
    
    0.07
    
    
    
    0.03
    
    
    
    0.04- Past Due Unsecured Amounts
    
    
    2.32
    
    
    
    3.34
    
    
    
    2.59
    
    
    
    2.48
    
    
    
    2.07- Non-Accrual Loans (2)
    
    
    3.37
    
    
    
    4.77
    
    
    
    3.49
    
    
    
    3.14
    
    
    
    2.58- Non-Accrual Loans (2) (Excluding Interbank Loans)
    
    
    3.42
    
    
    
    4.93
    
    
    
    3.60
    
    
    
    3.18
    
    
    
    2.79Non-Accrual Loans (2) as a Percentage of Loans to the
Private Sector
    
    
    3.37
    
    
    
    4.77
    
    
    
    3.95
    
    
    
    3.53
    
    
    
    3.49Allowance for Loan Losses as a % of:- Total Loans
    
    
    4.64
    
    
    
    5.65
    
    
    
    4.30
    
    
    
    3.58
    
    
    
    3.03- Total Loans Excluding Interbank Loans
    
    
    4.70
    
    
    
    5.84
    
    
    
    4.44
    
    
    
    3.63
    
    
    
    3.27- Total Non-Accrual Loans (2)
    
    
    137.57
    
    
    
    118.64
    
    
    
    123.11
    
    
    
    114.05
    
    
    
    117.16Non-Accrual Loans with Guarantees as a Percentage
of Non-Accrual Loans (2)
    
    
    8.65
    
    
    
    19.36
    
    
    
    12.22
    
    
    
    12.91
    
    
    
    16.23Non-Accrual Loans as a Percentage of Total Past Due
Loans
    
    
    131.08
    
    
    
    120.49
    
    
    
    121.56
    
    
    
    113.20
    
    
    
    108.73
 (1)
    
    Before the allowance for loan losses.(2)
    
    Non-Accrual loans are defined as those loans in the categories of: (a) Consumer portfolio: Medium Risk, High Risk,
Uncollectible, and Uncollectible Due to Technical Reasons, and (b) Commercial portfolio: With problems, High Risk of
Insolvency, Uncollectible, and Uncollectible Due to Technical Reasons.
  -62-




---



##### Table of Contents




    
    in the consumer portfolio: Medium Risk, High Risk, Uncollectible and
Uncollectible Due to Technical Reasons.
 
    
    in the commercial portfolio: With Problems, High Risk of Insolvency,
Uncollectible and Uncollectible Due to Technical Reasons.
  As of December 31,2010
    
    
    2009
    
    
    2008
    
    
    2007
    
    
    2006(in millions of Pesos)Interest Income
that Would Have
Been Recorded on
Non-Accrual Loans
on which the
Accrual of Interest
was Discontinued
    
    
    56.0
    
    
    
    52.0
    
    
    
    35.4
    
    
    
    35.9
    
    
    
    23.7Recoveries of
Interest on Loans
Classified as
Non-Accrual on
which the Accrual
of Interest had
been Discontinued
(1)
    
    
    2.8
    
    
    
    2.6
    
    
    
    1.8
    
    
    
    1.8
    
    
    
    1.2
 (1)
    
    Recorded under Miscellaneous Income.
  -63-




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##### Table of Contents



Loan Loss Experience
  Fiscal Year EndedDecember 31,2010
    
    
    2009
    
    
    2008
    
    
    2007
    
    
    2006(in millions of Pesos, except ratios)Total Loans, Average(1)
    
    
    16,800.8
    
    
    
    11,481.9
    
    
    
    12,077.3
    
    
    
    10,528.9
    
    
    
    10,851.0Allowance for Loan Losses at Beginning of Period(2)
    
    
    806.4
    
    
    
    526.8
    
    
    
    428.6
    
    
    
    327.0
    
    
    
    427.9Changes in the Allowance for Loan Losses During the Period (2)Provisions Charged to Income
    
    
    523.6
    
    
    
    625.9
    
    
    
    384.6
    
    
    
    248.4
    
    
    
    105.3Prior Allowances Reversed
    
    
    
    
    
    
    (5.4
    )
    
    
    (6.5
    )
    
    
    (21.5
    )
    
    
    (32.5
    )Charge-Offs (A)
    
    
    (487.3
    )
    
    
    (354.5
    )
    
    
    (289.2
    )
    
    
    (125.4
    )
    
    
    (200.8
    )Inflation and Foreign Exchange Effect and Other Adjustments (3)
    
    
    195.8
    
    
    
    13.6
    
    
    
    9.3
    
    
    
    0.1
    
    
    
    27.1Allowance for Loan Losses at End of Period
    
    
    1,038.5
    
    
    
    806.4
    
    
    
    526.8
    
    
    
    428.6
    
    
    
    327.0Charge to the Income Statement during the PeriodProvisions Charged to Income (2)
    
    
    523.6
    
    
    
    625.9
    
    
    
    384.6
    
    
    
    248.4
    
    
    
    105.3Direct Charge-Offs, Net of Recoveries (B)
    
    
    (88.6
    )
    
    
    (27.9
    )
    
    
    (68.4
    )
    
    
    (57.2
    )
    
    
    (46.4
    )Recoveries of Provisions
    
    
    
    
    
    
    (5.4
    )
    
    
    (6.5
    )
    
    
    (21.5
    )
    
    
    (32.5
    )Net Charge (Benefit) to the Income Statement
    
    
    435.0
    
    
    
    592.6
    
    
    
    309.7
    
    
    
    169.7
    
    
    
    26.4Ratios (%)Charge-Offs Net of Recoveries (A+B) to Average Loans (4)
    
    
    2.37
    
    
    
    2.84
    
    
    
    1.83
    
    
    
    0.65
    
    
    
    1.42Net Charge to the Income Statement to Average Loans(4)
    
    
    2.59
    
    
    
    5.16
    
    
    
    2.56
    
    
    
    1.61
    
    
    
    0.24
 (1)
    
    Before the allowance for loan losses.(2)
    
    Includes quotation differences for Galicia Uruguay and Cayman Branch.(3)
    
    Includes Ps.185.4 million corresponding to the allowance for loan losses of CFA as of the date of its acquisition.(4) Charge-offs plus direct charge-offs minus
bad debts recovered.
  Allocation of the Allowance for Loan Losses
 
 As of December 31,2010
    
    
    2009
    
    
    2008Loan
    
    
    
    
    
    
    
    
    
    
    Loan
    
    
    
    
    
    
    
    
    
    
    Loan% of
    
    
    Category
    
    
    
    
    
    
    % of
    
    
    Category
    
    
    
    
    
    
    % of
    
    
    CategoryAmount
    
    
    Loans
    
    
    %
    
    
    Amount
    
    
    Loans
    
    
    %
    
    
    Amount
    
    
    Loans
    
    
    %(in millions of Pesos, except percentages)Non-Financial Public Sector
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    10.77Local Financial Sector
    
    
    
    
    
    
    
    
    
    
    0.36
    
    
    
    
    
    
    
    
    
    
    
    0.18
    
    
    
    
    
    
    
    
    
    
    
    1.21Non-Financial Private
Sector and Residents
AbroadAdvances
    
    
    55.1
    
    
    
    0.25
    
    
    
    4.38
    
    
    
    31.7
    
    
    
    0.22
    
    
    
    4.42
    
    
    
    14.5
    
    
    
    0.12
    
    
    
    4.85Promissory Notes
    
    
    43.3
    
    
    
    0.19
    
    
    
    20.27
    
    
    
    80.3
    
    
    
    0.56
    
    
    
    22.47
    
    
    
    34.9
    
    
    
    0.28
    
    
    
    17.28Mortgage Loans
    
    
    10.6
    
    
    
    0.05
    
    
    
    4.25
    
    
    
    11.8
    
    
    
    0.08
    
    
    
    6.76
    
    
    
    21.9
    
    
    
    0.18
    
    
    
    8.38Pledge Loans
    
    
    2.6
    
    
    
    
    
    
    
    0.53
    
    
    
    1.5
    
    
    
    
    
    
    
    0.45
    
    
    
    0.5
    
    
    
    
    
    
    
    0.66Personal Loans
    
    
    139.2
    
    
    
    0.62
    
    
    
    18.30
    
    
    
    63.9
    
    
    
    0.45
    
    
    
    12.09
    
    
    
    37.8
    
    
    
    0.31
    
    
    
    9.94Credit-Card Loans
    
    
    166.8
    
    
    
    0.75
    
    
    
    40.77
    
    
    
    168.3
    
    
    
    1.18
    
    
    
    39.90
    
    
    
    111.4
    
    
    
    0.91
    
    
    
    35.75Placements in
Correspondent Banks
    
    
    
    
    
    
    
    
    
    
    0.96
    
    
    
    
    
    
    
    
    
    
    
    3.09
    
    
    
    
    
    
    
    
    
    
    
    2.73Other
    
    
    16.9
    
    
    
    0.08
    
    
    
    10.17
    
    
    
    16.0
    
    
    
    0.11
    
    
    
    10.60
    
    
    
    7.4
    
    
    
    0.06
    
    
    
    8.43Unallocated (1)
    
    
    604.0
    
    
    
    2.69
    
    
    
    
    
    
    
    432.9
    
    
    
    3.04
    
    
    
    
    
    
    
    298.4
    
    
    
    2.44
    
    
    
    Total
    
    
    1,038.5
    
    
    
    4.64
    
    
    
    100.00
    
    
    
    806.4
    
    
    
    5.65
    
    
    
    100.00
    
    
    
    526.8
    
    
    
    4.30
    
    
    
    100.00
  -64-




---



##### Table of Contents



As of December 31,2007
    
    
    2006Amount
    
    
    % of Loans
    
    
    Loan Category %
    
    
    Amount
    
    
    % of Loans
    
    
    Loan Category %(in millions of Pesos, except percentages)Non-Financial Public Sector
    
    
    
    
    
    
    
    
    
    
    10.11
    
    
    
    
    
    
    
    
    
    
    
    24.90Local Financial Sector
    
    
    
    
    
    
    
    
    
    
    0.92
    
    
    
    
    
    
    
    
    
    
    
    2.88Non-Financial Private
Sector and Residents
AbroadAdvances
    
    
    16.2
    
    
    
    0.13
    
    
    
    6.61
    
    
    
    16.3
    
    
    
    0.15
    
    
    
    3.21Promissory Notes
    
    
    119.8
    
    
    
    1.00
    
    
    
    24.31
    
    
    
    151.1
    
    
    
    1.40
    
    
    
    19.84Mortgage Loans
    
    
    26.5
    
    
    
    0.22
    
    
    
    7.89
    
    
    
    25.0
    
    
    
    0.23
    
    
    
    6.37Pledge Loans
    
    
    0.3
    
    
    
    
    
    
    
    0.79
    
    
    
    0.4
    
    
    
    
    
    
    
    0.62Personal Loans
    
    
    14.0
    
    
    
    0.12
    
    
    
    8.17
    
    
    
    3.7
    
    
    
    0.03
    
    
    
    5.21Credit-Card Loans
    
    
    56.0
    
    
    
    0.47
    
    
    
    30.31
    
    
    
    28.5
    
    
    
    0.26
    
    
    
    22.76Placements in
Correspondent Banks
    
    
    
    
    
    
    
    
    
    
    1.32
    
    
    
    
    
    
    
    
    
    
    
    5.63Other
    
    
    7.9
    
    
    
    0.07
    
    
    
    9.57
    
    
    
    1.0
    
    
    
    0.01
    
    
    
    8.58Unallocated (1)
    
    
    187.9
    
    
    
    1.57
    
    
    
    
    
    
    
    101.0
    
    
    
    0.95
    
    
    
    Total
    
    
    428.6
    
    
    
    3.58
    
    
    
    100.00
    
    
    
    327.0
    
    
    
    3.03
    
    
    
    100.00
 (1)
    
    The unallocated reserve consists of the allowances established on the portfolio classified in the normal situation
category and includes additional reserves in excess of Argentine Central Bank minimum requirements.
 Charge-Offs
  Fiscal Year EndedDecember 31,2010
    
    
    2009
    
    
    2008(in millions of Pesos)Charge-offs by TypeAdvances
    
    
    18.5
    
    
    
    21.3
    
    
    
    17.3Promissory Notes
    
    
    82.5
    
    
    
    20.3
    
    
    
    92.3Mortgage Loans
    
    
    1.5
    
    
    
    9.9
    
    
    
    7.9Pledge Loans
    
    
    0.9
    
    
    
    0.3
    
    
    
    0.1Personal Loans
    
    
    106.8
    
    
    
    60.8
    
    
    
    27.5Credit-Card LoansBanco Galicia
    
    
    52.4
    
    
    
    54.9
    
    
    
    31.6Regional Credit Card Companies
    
    
    217.9
    
    
    
    178.6
    
    
    
    107.7Other Loans
    
    
    6.8
    
    
    
    8.4
    
    
    
    4.8Total
    
    
    487.3
    
    
    
    354.5
    
    
    
    289.2
  -65-




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##### Table of Contents



Foreign Outstandings
  Fiscal Year EndedDecember 31,Country
    
    2010
    
    
    2009
    
    
    2008(in millions of Pesos)United KingdomDemand Deposits
    
    
    1.4
    
    
    
    5.5
    
    
    
    6.0Forward Purchases of Boden 2012 Bonds
    
    
    
    
    
    
    
    
    
    
    829.0Forward Purchases of Discount Bonds in Pesos
    
    
    
    
    
    
    
    
    
    
    603.2Forward Purchases of Bonar 2015 Bonds
    
    
    544.8
    
    
    
    
    
    
    
    Other
    
    
    0.1
    
    
    
    
    
    
    
    Total
    
    
    546.3
    
    
    
    5.5
    
    
    
    1,438.2United StatesDemand Deposits
    
    
    191.5
    
    
    
    178.6
    
    
    
    353.4Overnight Placements
    
    
    215.3
    
    
    
    440.5
    
    
    
    317.3Other
    
    
    44.4
    
    
    
    21.6
    
    
    
    0.7Total
    
    
    451.2
    
    
    
    640.7
    
    
    
    671.4GermanyDemand Deposits
    
    
    0.3
    
    
    
    2.1
    
    
    
    3.0Forward Purchases of Boden 2012 Bonds
    
    
    
    
    
    
    803.4
    
    
    
    1,087.9Other
    
    
    1.3
    
    
    
    
    
    
    
    Total
    
    
    1.6
    
    
    
    805.5
    
    
    
    1,090.9
  
    
    Ps.546.3 million (1.5% of our total assets) with United Kingdom financial
institutions, of which Ps.544.8 million represented two forward purchases of Bonar
2015 Bonds in connection with repurchase agreement transactions with the applicable
financial institution, and Ps.1.4 million corresponded to demand deposits with such
institution.
 
    
    Ps.451.2 million (1.3% of our total assets) representing liquid placements with
United States financial institutions, of which Ps.191.5 million corresponded to
demand deposits and Ps.215.3 million represented overnight placements.
 
    
    Ps.1.6 million with German financial institutions, of which Ps.0.3 million
corresponded to demand deposits.
  -66-




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##### Table of Contents



Deposits
  As of December 31,2010
    
    
    2009
    
    
    2008(in millions of Pesos)Current Accounts and Other Demand Deposits
    
    
    5,565.7
    
    
    
    3,719.2
    
    
    
    3,105.4Savings Accounts
    
    
    6,362.0
    
    
    
    4,994.7
    
    
    
    4,035.0Time Deposits
    
    
    9,724.9
    
    
    
    7,954.7
    
    
    
    6,548.0Other Deposits(1)
    
    
    463.2
    
    
    
    248.8
    
    
    
    263.2Plus: Accrued Interest, Quotation
Differences and CER Adjustment
    
    
    107.0
    
    
    
    122.0
    
    
    
    104.5Total Deposits
    
    
    22,222.8
    
    
    
    17,039.4
    
    
    
    14,056.1
 (1)
    
    Includes among other, deposits originated by Decree No. 616/05, Reprogrammed
Deposits under judicial proceedings and other demand deposits.
      Peso-Denominated
    
    
    Dollar-Denominated
    
    
    Total% of
    
    
    
    
    
    
    % of
    
    
    
    
    
    
    % ofAmount
    
    
    Total
    
    
    Amount
    
    
    Total
    
    
    Amount
    
    
    Total(in millions of Pesos, except percentages)Current Accounts and Demand Deposits
    
    Ps.
    5,565.7
    
    
    
    30.8
    %
    
    
    
    
    
    
    
    %
    
    Ps.
    5,565.7
    
    
    
    25.2
    %Savings Accounts
    
    
    4,186.6
    
    
    
    23.1
    
    
    Ps.
    2,175.4
    
    
    
    54.2
    
    
    
    6,362.0
    
    
    
    28.8Time Deposits
    
    
    8,028.1
    
    
    
    44.4
    
    
    
    1,696.8
    
    
    
    42.3
    
    
    
    9,724.9
    
    
    
    44.0Maturing Within 30 Days
    
    
    1,584.3
    
    
    
    8.8
    
    
    
    407.6
    
    
    
    10.2
    
    
    
    1,991.9
    
    
    
    9.0Maturing After 31 Days but Within 59 Days
    
    
    2,982.4
    
    
    
    16.5
    
    
    
    391.4
    
    
    
    9.8
    
    
    
    3,373.8
    
    
    
    15.3Maturing After 60 Days but Within 89 Days
    
    
    1,243.6
    
    
    
    6.9
    
    
    
    213.0
    
    
    
    5.3
    
    
    
    1,456.6
    
    
    
    6.6Maturing After 90 Days but Within 179 Days
    
    
    1,420.6
    
    
    
    7.9
    
    
    
    428.4
    
    
    
    10.7
    
    
    
    1,849.0
    
    
    
    8.4Maturing After 180 Days but Within 365 Days
    
    
    490.8
    
    
    
    2.7
    
    
    
    207.8
    
    
    
    5.2
    
    
    
    698.6
    
    
    
    3.2Maturing After 365 Days
    
    
    306.4
    
    
    
    1.6
    
    
    
    48.6
    
    
    
    1.1
    
    
    
    355.0
    
    
    
    1.5Other Deposits
    
    
    319.9
    
    
    
    1.8
    
    
    
    143.3
    
    
    
    3.6
    
    
    
    463.2
    
    
    
    2.1Maturing Within 30 Days
    
    
    158.9
    
    
    
    0.9
    
    
    
    116.4
    
    
    
    2.9
    
    
    
    275.3
    
    
    
    1.2Maturing After 31 Days but Within 59 Days
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Maturing After 60 Days but Within 89 Days
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Maturing After 90 Days but Within 179 Days
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Maturing After 180 Days but Within 365 Days
    
    
    123.0
    
    
    
    0.7
    
    
    
    
    
    
    
    
    
    
    
    123.0
    
    
    
    0.6Maturing After 365 Days
    
    
    38.0
    
    
    
    0.2
    
    
    
    26.9
    
    
    
    0.7
    
    
    
    64.9
    
    
    
    0.3Total Deposits(1)
    
    Ps.
    18,100.3
    
    
    
    100.0
    %
    
    
    4,015.5
    
    
    
    100.0
    %
    
    Ps.
    22,115.8
    
    
    
    100.0
    %
 (1)
    
    Only principal. Excludes the CER adjustment
  -67-




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##### Table of Contents



Domestic Offices
    
    
    Foreign Offices(in millions of Pesos)Time DepositsWithin 30 Days
    
    
    1,206.3
    
    
    
    After 31 Days but Within 59 Days
    
    
    2,467.7
    
    
    
    After 60 Days but Within 89 Days
    
    
    972.8
    
    
    
    After 90 Days but Within 179 Days
    
    
    1,233.8
    
    
    
    After 180 Days but Within 365 Days
    
    
    708.2
    
    
    
    After 365 Days
    
    
    333.4
    
    
    
    Total Time Deposits
    
    
    6,922.2
    
    
    
    Other Deposits
    
    
    
    
    
    
    Total Deposits(1)
    
    
    6,922.2
    
    
    
    
 (1)
    
    Only principal.
 Return on Equity and Assets
  Fiscal Year EndedDecember 31,2010
    
    
    2009
    
    
    2008(in millions of Pesos, except percentages)Net Income / (Loss)
    
    
    408.9
    
    
    
    229.3
    
    
    
    176.8Average Total Assets
    
    
    29,118.4
    
    
    
    24,685.3
    
    
    
    23,412.5Average Shareholders Equity
    
    
    2,195.0
    
    
    
    1,961.2
    
    
    
    1,745.0Shareholders Equity at End of the Period
    
    
    2,469.5
    
    
    
    2,052.5
    
    
    
    1,845.7Net Income as a Percentage of:Average Total Assets
    
    
    1.76
    
    
    
    1.12
    
    
    
    0.91Average Shareholders Equity
    
    
    18.63
    
    
    
    11.69
    
    
    
    10.13Declared Cash Dividends
    
    
    
    
    
    
    
    
    
    
    Dividend Payout Ratio
    
    
    
    
    
    
    
    
    
    
    Average Shareholders Equity as a Percentage of Average Total Assets
    
    
    7.54
    
    
    
    7.94
    
    
    
    7.45Shareholders Equity at the End of the Period as a Percentage of
Average Total Assets
    
    
    8.48
    
    
    
    8.31
    
    
    
    7.88
 Short-term Borrowings
  As of December 31,2010
    
    
    2009
    
    
    2008(in millions of Pesos)Short-Term BorrowingsArgentine Central Bank
    
    
    0.7
    
    
    
    2.1
    
    
    
    1.7Other Banks and International EntitiesCredit Lines from Domestic Banks
    
    
    155.4
    
    
    
    86.9
    
    
    
    43.6Credit Lines from Foreign Banks
    
    
    409.0
    
    
    
    180.0
    
    
    
    354.6Repurchases with Domestic Banks
    
    
    359.1
    
    
    
    278.1
    
    
    
    34.7Negotiable Obligations
    
    
    155.4
    
    
    
    125.8
    
    
    
    108.9Total
    
    
    1,079.6
    
    
    
    672.9
    
    
    
    543.5
  -68-




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##### Table of Contents



As of December 31,2010
    
    
    2009
    
    
    2008(in millions of Pesos)Banks and International EntitiesContractual Short-term LiabilitiesOther Lines from Foreign Banks
    
    
    409.0
    
    
    
    180.0
    
    
    
    354.6Total Short-term Liabilities
    
    
    409.0
    
    
    
    180.0
    
    
    
    354.6Total Banks and International Entities
    
    
    409.0
    
    
    
    180.0
    
    
    
    354.6Domestic and Financial InstitutionsContractual Short-term Liabilities:Other Lines from Credit from Domestic Banks
    
    
    155.4
    
    
    
    86.9
    
    
    
    43.6Total Short-term Liabilities
    
    
    155.4
    
    
    
    86.9
    
    
    
    43.6Total Domestic and Financial Institutions
    
    
    155.4
    
    
    
    86.9
    
    
    
    43.6Total
    
    
    564.4
    
    
    
    266.9
    
    
    
    398.2
  Annual Interest
    
    
    As of December 31,(in millions of Pesos)
    
    Maturity
    
    
    Rate
    
    
    2010
    
    
    2009
    
    
    2008Negotiable Obligations(*)Tarjeta Naranja Class X
    
    
    2011
    
    
    Badlar + 275 basis points (b.p.)
    
    
    
    48.2
    
    
    
    
    
    
    
    (Quarterly interest, principal payable at maturity)Tarjeta Naranja Class XI
    
    
    2011
    
    
    Badlar + 295 b.p.
    
    
    
    40.9
    
    
    
    
    
    
    
    (Quarterly interest, principal payable at maturity)Tarjetas Cuyanas Class I
    
    
    2011
    
    
    Badlar + 300 b.p.
    
    
    
    28.8
    
    
    
    
    
    
    
    (Quarterly interest, principal payable at maturity)Tarjetas Cuyanas Class II
    
    
    2011
    
    
    
    9.95
    %
    
    
    37.5
    
    
    
    
    
    
    
    (Quarterly interest, principal payable at maturity)Grupo Financiero Galicia Series I
    
    
    2010
    
    
    
    
    
    
    
    
    
    
    
    125.8
    
    
    
    (Discounted base, principal payable at maturity)Tarjeta Naranja Class VIII
    
    
    2009
    
    
    
    11.00
    %
    
    
    
    
    
    
    
    
    
    
    69.1(Fixed interest, principal payable at maturity)Tarjetas Cuyanas Series XIX
    
    
    2009
    
    
    
    14.00
    %
    
    
    
    
    
    
    
    
    
    
    39.8(Fixed interest, principal payable at maturity)Total
    
    
    
    
    
    
    
    
    
    
    155.4
    
    
    
    125.8
    
    
    
    108.9
 (*)
    
    Only principal.
  -69-




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##### Table of Contents




    
    the weighted-average interest rate at year-end,
 
    
    the maximum balance recorded at the monthly closing dates of the periods,
 
    
    the average balances for each period, and
 
    
    the weighted-average interest rate for each period.
 As of December 31,2010
    
    
    2009
    
    
    2008(in millions of Pesos, except percentages)Argentine Central BankWeighted-average Interest Rate at End of Period
    
    
    
    
    
    
    
    
    
    
    Maximum Balance Recorded at the Monthly Closing Dates
    
    Ps.
    1.9
    
    
    Ps.
    2.8
    
    
    Ps.
    1.7Average Balances for Each Period
    
    Ps.
    0.7
    
    
    Ps.
    1.3
    
    
    Ps.
    1.1Weighted-average Interest Rate for the Period
    
    
    
    
    
    
    
    
    
    
    Credit Lines from Domestic BanksWeighted-average Interest Rate at End of Period
    
    
    16.1
    %
    
    
    10.9
    %
    
    
    24.7
    %Maximum Balance Recorded at the Monthly Closing Dates
    
    Ps.
    343.0
    
    
    Ps.
    86.9
    
    
    Ps.
    261.5Average Balances for Each Period
    
    Ps.
    150.7
    
    
    Ps.
    45.6
    
    
    Ps.
    72.9Weighted-average Interest Rate for the Period
    
    
    11.0
    %
    
    
    12.2
    %
    
    
    13.7
    %Credit Lines from Foreign BanksWeighted-average Interest Rate at End of Period
    
    
    1.4
    %
    
    
    2.5
    %
    
    
    5.4
    %Maximum Balance Recorded at the Monthly Closing Dates
    
    Ps.
    409.0
    
    
    Ps.
    257.2
    
    
    Ps.
    457.4Average Balances for Each Period
    
    Ps.
    266.8
    
    
    Ps.
    153.1
    
    
    Ps.
    373.6Weighted-average Interest Rate for the Period
    
    
    1.9
    %
    
    
    5.1
    %
    
    
    4.5
    %Repurchases with Domestic BanksWeighted-average Interest Rate at End of Period
    
    
    10.4
    %
    
    
    9.8
    %
    
    
    10.5
    %Maximum Balance Recorded at the Monthly Closing Dates
    
    Ps.
    359.1
    
    
    Ps.
    278.1
    
    
    Ps.
    400.6Average Balances for Each Period
    
    Ps.
    39.3
    
    
    Ps.
    25.9
    
    
    Ps.
    132.8Weighted-average Interest Rate for the Period
    
    
    9.8
    %
    
    
    9.6
    %
    
    
    10.5
    %Repurchases with Foreign BanksWeighted-average Interest Rate at End of Period
    
    
    
    
    
    
    
    
    
    
    Maximum Balance Recorded at the Monthly Closing Dates
    
    
    
    
    
    
    
    
    
    
    Average Balances for Each Period
    
    
    
    
    
    
    
    
    
    
    Weighted-average Interest Rate for the Period
    
    
    
    
    
    
    
    
    
    
    Negotiable ObligationsWeighted-average Interest Rate at End of Period
    
    
    13.6
    %
    
    
    
    %
    
    
    12.1
    %Maximum Balance Recorded at the Monthly Closing Dates
    
    Ps.
    176.8
    
    
    Ps.
    247.7
    
    
    Ps.
    108.9Average Balances for Each Period
    
    Ps.
    69.3
    
    
    Ps.
    139.8
    
    
    Ps.
    49.8Weighted-average Interest Rate for the Period
    
    
    9.0
    %
    
    
    5.5
    %
    
    
    9.9
    %
 Regulatory Capital
 Grupo Financiero Galicia
 Ley de Sociedades Comerciales
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##### Table of Contents



Banco Galicia
   January 1st/ December 31st
    
    Alfa 1
    
    
    Alfa 22004
    
    
    0.05
    
    
    
    0.202005
    
    
    0.15
    
    
    
    0.402006
    
    
    0.30
    
    
    
    0.702007
    
    
    0.50
    
    
    
    1.002008
    
    
    0.75
    
    
    
    2009
    
    
    1.00
    
    
    
    
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##### Table of Contents



As of December 31,2010
    
    
    2009
    
    
    2008(in millions of Pesos, except percentages)Shareholders Equity
    
    
    2,595.7
    
    
    
    2,126.5
    
    
    
    1,954.7Argentine Central Bank Minimum Capital Requirements(1)Allocated to Financial Assets
    
    
    1,618.4
    
    
    
    1,064.1
    
    
    
    1,014.1Allocated to Fixed Assets, Intangible and Unquoted Equity
Investments
    
    
    165.2
    
    
    
    168.7
    
    
    
    169.5Allocated to Market Risk
    
    
    5.8
    
    
    
    14.3
    
    
    
    5.4Allocated to Interest-Rate Risk
    
    
    70.1
    
    
    
    20.7
    
    
    
    50.7Lending to the Non-Financial Public Sector
    
    
    147.6
    
    
    
    343.7
    
    
    
    324.8Total (A)
    
    
    2,007.1
    
    
    
    1,611.5
    
    
    
    1,564.5Computable Regulatory Capital Calculated Under Argentine Banking
GAAPCore Capital
    
    
    2,192.4
    
    
    
    1,991.2
    
    
    
    1,789.1Supplemental Capital
    
    
    1,333.3
    
    
    
    1,070.2
    
    
    
    994.7DeductionsInvestments in Financial Entities
    
    
    (2.0
    )
    
    
    (1.9
    )
    
    
    (1.7
    )Organization Expenses
    
    
    (394.6
    )
    
    
    (274.9
    )
    
    
    (191.3
    )Goodwill Recorded from June 30, 1997
    
    
    (11.5
    )
    
    
    (17.5
    )
    
    
    (28.5
    )Negative Goodwill CFA
    
    
    467.2
    
    
    
    
    
    
    
    Real Estate Properties for Banco Galicias Own Use and
Miscellaneous, for which No Title Deed has been Made
    
    
    (2.6
    )
    
    
    (8.4
    )
    
    
    (6.3
    )Other
    
    
    (8.2
    )
    
    
    (9.9
    )
    
    
    (17.0
    )Total
    
    
    48.3
    
    
    
    (312.6
    )
    
    
    (244.8
    )Additional Capital  Market Variation
    
    
    19.9
    
    
    
    40.4
    
    
    
    13.3Total (B)
    
    
    3,593.9
    
    
    
    2,789.2
    
    
    
    2,552.3Excess CapitalExcess Over Required Capital (B)-(A)
    
    
    1,586.8
    
    
    
    1,177.7
    
    
    
    987.8Excess Over Required Capital as a % of Required Capital
    
    
    79.06
    
    
    
    73.08
    
    
    
    63.14Total Capital Ratio
    
    
    15.19
    
    
    
    14.35
    
    
    
    13.92
 (1)
    
    In accordance with Argentine Central Bank rules applicable at each date.    Regional Credit Card Companies
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Compañía Financiera Argentina
  Minimum Capital Requirements of Insurance Companies
  (a)
    
    By line of insurance: this method establishes a fixed amount by line of insurance. For life
insurance companies, it is Ps.4 million, increasing to Ps.5 million for companies that offer
pension-linked life insurance. For providers of retirement insurance that do not offer
pension-linked annuities, the requirement is Ps.3 million (increasing to Ps.5 million for
companies that offer pension-linked annuities). For companies that offer property insurance
that includes damage coverage (excluding those related to vehicles) the requirement is Ps.1.5
million (increasing to Ps.8 million for companies that offer all P&C products).
 (b)
    
    By premiums and additional fees: to use this method, the company must calculate the sum of
the premiums written and additional fees earned in the last 12 months. Based on the total, the
company must calculate 16%. Finally, it must adjust the total by the ratio of net paid claims
to gross paid claims for the last 36 months. This ratio must be at least 50%.
 (c)
    
    By claims: to use this method, the company must calculate the sum of gross claims paid during
the 36 months prior to the end of the period under analysis. To that amount, it must add the
difference between the balance of unpaid claims as of the end of the period under analysis and
the balance of unpaid claims as of the 36th month prior to the end of the period
under analysis. The resulting figure must be divided by three. Then the company must calculate
23%. The resulting figure must be adjusted by the ratio of net paid claims to gross paid
claims for the last 36 months. This ratio must be at least 50%.
 (d)
    
    For life insurance companies that offer policies with an investment component, the figures
obtained in b) and c) must be increased by an amount equal to 4% of the technical reserves
adjusted by the ratio of net technical reserves to gross technical reserves (at least 85%),
plus 0.3% of at-risk capital adjusted by the ratio of retained at-risk capital to total
at-risk capital (at least 50%).
   
 Government Regulation
 General
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Régimen de la Transparencia
de la Oferta Pública
 Ley de Defensa de la Competencia Ley de Lealtad Comercial
    
 Ley de Tarjetas de
Crédito
    Foreign Exchange Market
    -74-




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(a)
    
    Foreign exchange flows into and from the local foreign exchange market and all
resident new debt transactions that may imply future foreign exchange payments to
nonresidents must be registered with the Argentine Central Bank.
 (b)
    
    All new debt of the private sector with non-residents must be for a minimum term of
365 days, except for international trade financing and primary issuances of debt
securities, if such securities public offering and listing on self-regulated markets in
Argentina has been duly authorized.
 (c)
    
    All inflows of foreign exchange resulting from such indebtedness, with the exceptions
mentioned in the previous item and those regulated by the Argentine Central Bank which are
detailed below, and all inflows of foreign exchange by non-residents, excluding direct
foreign investments and certain portfolio investments (subscriptions of primary issuances
of debt and equity securities, which public offering and listing in self-regulated markets
in Argentina has been duly authorized, and government securities acquired in the secondary
market), must be kept in Argentina for a term of at least 365 days and will be subject to
a 30% deposit requirement.
 (d)
    
    Such deposit requirement will be held in a local financial institution as an
unremunerated, no-transferable Dollar-denominated time deposit maturing in at least 365
days; such funds will not be available as a guarantee for any kind of debt and, upon the
deposit maturity date, such funds will become available within the country and, therefore,
will be subject to the applicable restrictions on foreign exchange transfers abroad.
 (e)
    
    The 30% deposit is not required for, among other things, inflows of foreign currency
resulting from:
 (i)
    
    loans granted to residents by local financial institutions in foreign currency;
 (ii)
    
    direct investment contributions in Argentina capital contributions to local
institutions, when the contributor owns, previously or as a result of such
contributions, 10% or more of the companys capital or votes, subject to compliance
with certain requirements;
 (iii)
    
    sales of ownership interests in local entities to direct investors, to the
extent certain documentation;
 (iv)
    
    to be applied to real estate acquisitions;
 (v)
    
    an indebtedness with multilateral and bilateral credit agencies either directly
or through their related agencies, in so far as such funds pertain to transactions
conducted in full compliance with their purposes; however, when such inflows are
related to the integration (or acquisition) of securities issued by financial trusts,
it is necessary to comply with other requirements to avoid the 30% deposit. other
foreign indebtedness of the local non-financial private sector, with an average life of
no less than two years (including principal and interest), the proceeds of which will
be applied to the acquisition of non-financial investments (as defined by the Argentine
Central Bank);
 (vi)
    
    other foreign indebtedness with no resident creditor of the financial sector
and of the private, non-financial sector, to extent the proceeds from the foreign
exchange settlement are simultaneously applied, net of taxes an expenses to (i) the
acquisition of foreign currency to repay external debts service and/or (ii) the
formation of long-term off-shore assets;
 (vii)
    
    that will be utilized within 10 business days from their liquidation in the
local foreign exchange market for purposes listed as current transactions within the
international accounts (as defined by the Argentine Central Bank), among others,
within such purposes are the payment by non-Argentine residents of certain local taxes;
or
 (viii)
    
    resulting from the sale of foreign assets of residents in order to subscribe to
primary issuances of public debt issued by the Government; and
  -75-




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##### Table of Contents



(f)
    
    The proceeds of sales of foreign assets brought into the country by residents
(capital repatriation) will be subject to the 30% deposit requirement noted in (c)
above, which will apply to any amounts exceeding US$2.0 million per month if certain other
operative requirements are met.
    (a)
    
    With no limit in the case of: (i) proceeds from the principal amortization of
government debt securities and guarantee loans in local currency; (ii) recoveries from
local bankruptcies; (iii) proceeds from the sale of direct investments (as it is defined by
the Argentina Central Bank) in the non-financial private sector in Argentina if they were
made with foreign currency that entered the local foreign exchange market no less than 365
days before; and (iv) certain other specific cases.
 (b)
    
    With a US$500,000 monthly limit in the case of the aggregate proceeds of the sale of
portfolio investments made with foreign currency that entered the local foreign exchange
market no less than 365 days before.
 (c)
    
    With a US$5,000 monthly limit in the aggregated of the entities authorized to deal with
foreign exchange, in cases not contemplated above, unless authorization from the Argentine
Central Bank is obtained.
    Compensation to Financial Institutions
 For the Asymmetric Pesification and its Consequences
  
    
    the losses caused by the mandatory conversion into Pesos of certain liabilities at
the Ps.1.4 per US$1.0 exchange rate, which exchange rate was greater than the Ps.1.0
per US$1.0 exchange rate established for the conversion into Pesos of certain
Dollar-denominated assets. This was to be achieved through the delivery of a
Peso-denominated compensatory bond issued by the Government.
 
    
    the currency mismatch left on financial institutions balance sheets after the
compulsory pesification of certain of their assets and liabilities after the
conversion of the Peso-denominated compensatory bond into a Dollar-denominated
compensatory bond. This would be achieved by the purchase by financial institutions of
a Dollar-denominated hedge bond. For such purpose, the Government established the
issuance of a Dollar-denominated bond bearing Libor and maturing in 2012 (Boden 2012
Bonds).
  -76-




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For Differences Related to Amparo Claims
   amparo claims
  amparo
claims amparo claims
 amparo claims
  -77-




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##### Table of Contents



Argentine Banking Regulation
 The following is a summary of certain matters relating to the Argentine banking system,
including provisions of Argentine law and regulations applicable to financial institutions in
Argentina. This summary is not intended to constitute a complete analysis of all laws and
regulations applicable to financial institutions in Argentina.
 General
   Principal Regulatory Changes since 2002
 Ley de Emergencia Ley de Convertibilidad corralito corralón corralito corralón corralón
   -78-




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Supervision
    Examination by the Argentine Central Bank
   Minimum Capital Requirements
    -79-




---



##### Table of Contents



BASIC System
  
    
    B (Bonos or Bonds). On an annual basis, all financial institutions in Argentina were
required to engage in certain debt issuing transactions in order to expose them to scrutiny
and analysis by third parties with high standards. This requirement was eliminated by the
Argentine Central Bank effective March 1, 2002.
 
    
    A (Auditoría or Audit). The Argentine Central Bank requires a set of external audit
procedures that include: (a) the creation of a registry of auditors; (b) the implementation
of strict accounting procedures to be complied with by external auditors; (c) the payment
of a performance guarantee by those auditors to induce their compliance with the
procedures, and (d) the creation of a department within the Argentine Central Bank liable
for verifying that the procedures are followed. The purpose of this requirement is to
assure accurate disclosure by the financial institutions to both the Superintendency and
the public.
 
    
    S (Supervisión or Supervision). The Argentine Central Bank has the right to inspect
financial institutions from time to time.
 
    
    I (Información or Information). Financial institutions are required to file on a
monthly basis certain daily, weekly, monthly and quarterly statistical information.
 
    
    C (Calificación or Rating). The Argentine Central Bank established a system that
required the periodic credit evaluation of financial entities by internationally recognized
rating agencies, which was suspended by Communiqué A 3601 in May 2002.
 Legal Reserve
  Limitations on Types of Business
     -80-




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##### Table of Contents



Computable Regulatory Capital
   Capital Adequacy Requirements
  Capitalization of Debt Instruments
   -81-




---



##### Table of Contents



Profit Distribution
  Legal Reserve Requirements for Liquidity Purposes
      
    
    Demand deposits:
 
    
    Peso-denominated current accounts and savings accounts: 19%.
 
    
    Dollar-denominated savings accounts: 20%.
 
    
    Time deposits, including those adjusted by CER (by remaining maturity):
 
    
    Peso-denominated: up to 29 days: 14%; from 30 to 59 days: 11%; from 60 to 89
days: 7%; from 90 to 179 days: 2%; from 180 to 365 days: 0%.
 
    
    Dollar-denominated: up to 29 days: 20%; from 30 to 59 days: 15%; from 60 to 89
days: 10%; from 90 to 179 days: 5%; from 180 to 365 days: 2%; and more than 365
days: 0%.
    -82-




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##### Table of Contents



Lending Limits
         
    
    Financial institutions rated 1, 2 or 3, subject to consolidation with the lender or
the borrower:
 
    
    If the affiliate is a financial institution rated 1, the amount of total
financial exposure can reach 100% of a banks RPC, and 50% for additional financial
assistance.
 
    
    If the receiving affiliate financial institution is rated 2, the amount of
total financial exposure can reach 20% and an additional 105% can be included.
 
    
    If the affiliate is a financial institution rated 3, the amount of total
financial exposure can reach 10%, and additional financial assistance can reach 40%.
  -83-




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##### Table of Contents




    
    Financial institutions not subject to consolidation with the lender or the
borrower: 10%
 
    
    Domestic companies with complementary services associated with brokerage of shares,
financial brokerage in leasing and factoring operations, and temporary acquisition of shares in
companies to facilitate their development in order to sell such shares afterwards.
 
    
    Controlling company rated 1: General assistance: 100%
    
    Controlling company rated 2: General assistance 10% / Additional assistance 90%
 
    
    Domestic companies with complementary services related to the issuance of credit
cards, debit cards or other cards:
 
    
    Controlling company rated 1: General assistance: 100% / Additional assistance 50%
    
    Controlling company rated 2: General assistance 20% / Additional assistance 105%
    
    Controlling company rated 3: General assistance 10% / Additional assistance 40%
 
    
    Domestic companies with complementary services, not subject to consolidation with
the lender or the borrower : 10%
 
    
    Foreign financial entities:
 
    
    Investment grade: 10%
    
    No Investment grade: Unsecured 5%; Secured 10%
     Loan Classification System and Loan Loss Provisions
  Valuation of Public Sector Assets
  (a)
    
    Reasonable market value: the debt instruments are registered at the corresponding
market closing price or at present value; it is applicable to debt instruments included in
the list of volatilities or present values published by the Argentine Central Bank.
  -84-




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##### Table of Contents



(b)
    
    Cost plus yield: the debt instruments not included in the list mentioned in a) above,
are registered at incorporation value increased on an exponential basis according to their
internal rate of return (IRR). The monthly accrual shall be recorded in the income
statement or in a contra asset account according to the debt instrument:
 (i)
    
    Debt instruments stemming from sovereign debt exchanges: as long as the market
value is lower than the book value, 50% of the yield will be allocated to income and
the remaining 50% will be recorded with a counterpart under contra asset accounts,
which will be reversed by means of an allocation to
income as long as their balance exceeds the positive difference between the market value
and the book value of said account.
 (ii)
    
    Argentine Central Bank instruments: the yield will be allocated to income.
 (iii)
    
    Debt instruments not stemming from sovereign debt exchanges and not included
in the list mentioned in a) above: registered at present value, discounting the cash
flows at a discount rate equal to the yield of debt instruments with volatility
published by the Argentine Central Bank with similar duration. As long as the present
value is lower than the book value, the monthly accrual shall be recorded with a
counterpart under contra asset account.
  Financial Assistance from the Argentine Central Bank
 Financial Assistance for Liquidity Support Granted After March 10, 2003
  Financial Assistance for Liquidity Support Granted Before April 1, 2003
  Foreign Currency Position
   -85-




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##### Table of Contents



Deposit Insurance System
 Fondo de Garantía de los Depósitos
  Priority Rights of Depositors
   
    
    deposits of individuals or entities up to Ps.50,000 or the equivalent thereof in
foreign currency, with only one person per deposit being able to use this preference.
For the determination of this preference, all deposits of the same person registered by
the entity shall be computed;
 
    
    deposits in excess of Ps.50,000 or the equivalent thereof in foreign currency,
referred to above;
 
    
    liabilities originated on commercial credit lines granted to the financial entity,
which are directly related with international trade.
   Financial Institutions with Economic Difficulties
   -86-




---



##### Table of Contents



Dissolution and Liquidation of Financial Institutions
     -87-




---



##### Table of Contents



Credit Cards Regulation
  
    
    sets a 3% cap on the rate a credit card company can charge merchants for processing
customer card holders transactions with such merchants, calculated as a percentage of
the customers purchases. With respect to debit cards, the cap is set at 1.5% and the
amounts relating to the customers purchases should be processed in a maximum of 3
business days;
 
    
    establishes that credit card companies must provide the Argentine Central Bank with
the information on their loan portfolio that such entity requires; and
 
    
    sets a cap on the interest rate a credit card company can charge a card holder,
which cannot exceed by more than 25% the average interest rate charged by the issuer on
personal loans and, for non-bank issuers, it cannot exceed by more than 25% the
financial systems average interest rate on personal loans (published by the Argentine
Central Bank).
  
 Concealment and Laundering of Assets of a Criminal Origin
   i)
    
    Any person who converts, transfers, administers, sells, encumbers or uses money
or any other asset derived from any crime in which he was not involved, with the
possible result of giving those original or secondary assets the appearance of having a
legal origin and as long as their value is greater than Ps.50,000, whether through a
single act or through a series of related events, will be imprisoned for two to ten
years and will be fined an amount that will be between two and ten times the amount of
the transaction.
 ii)
    
    Any person that was not involved in a crime committed by another person but
that (a) helps a person to elude or escape from an investigation by the relevant
authority; (b) hides, alters or destroys any trail, evidence or object related to the
crime or helps the perpetrator of the crime or any participant to hide them, alter them
or make them disappear; (c) acquires, receives or hides money or objects arising from a
crime; (d) does not report a crime or does not identify a perpetrator of or participant
in a crime that is known to him when obligated to do so in order to promote the
criminal prosecution of a crime of such nature; or (e) secures or helps the perpetrator
of or participant in a crime to secure the product or profit of a crime, will be
imprisoned for six months to three years.
    -88-




---



##### Table of Contents



Consejo de
Profesionales de Ciencias Económica
      -89-




---



##### Table of Contents



Item 4A.
    
    Unresolved Staff Comments
  
 Item 5.
    
    Operating and Financial Review and Prospects
 
 Item 5.A.
    
    Operating Results
  
 Overview
  
    
    Expand the volume of our business with the private sector;
 
    
    Progressively strengthen our balance sheet by consistently reducing Banco Galicias high
exposure to the public sector, as well as those liabilities incurred by Banco Galicia as a
consequence of the 2001-2002 crisis, and
 
    
    Capitalize Banco Galicia.
        -90-




---



##### Table of Contents



amparo claims
 
 The Argentine Economy
     -91-




---



##### Table of Contents



Risk Factors-Risk Factors Relating to Argentina-Inflation could increase from current levels,
and materially and adversely affect the Argentine economy and Grupo Financiero Galicias financial
position and business.
  -92-




---



##### Table of Contents



The Argentine Financial System
      -93-




---



##### Table of Contents



The Argentine Insurance Industry
    -94-




---



##### Table of Contents



Inflation
   For the 12-month period ended December 31,(in percentages)
    
    2010
    
    
    2009
    
    
    2008Price Indices (1) (2)Wholesale Price Index (WPI)
    
    
    14.56
    
    
    
    10.27
    
    
    
    8.82Consumer Price Index (CPI)
    
    
    10.92
    
    
    
    7.69
    
    
    
    7.24Adjustment IndicesCER
    
    
    11.04
    
    
    
    6.95
    
    
    
    7.97
 (1)
    
    Data for December of each year as compared to December of the immediately preceding year.
Source: INDEC/the Argentine Central Bank.(2)
    
    The accuracy of the measurements of the INDEC is in doubt, and the actual consumer price
index and wholesale price index could be substantially higher than those indicated by the INDEC.
For example, according to private sector estimates, the consumer price index increased by 19.4%
(rather than 7.2%) in 2008, 16.3% (rather than 7.7%) in 2009 and 22.9% (rather than 10.9%) in
2010.  
 Currency Composition of Our Balance Sheet
  As of December 31,2010
    
    
    2009
    
    
    2008(In millions of Pesos)AssetsIn Pesos, Unadjusted
    
    
    28,319.4
    
    
    
    19,791.0
    
    
    
    15,165.1In Pesos, Adjusted by the CER
    
    
    610.8
    
    
    
    926.3
    
    
    
    2,439.2In Foreign Currency (1)
    
    
    6,777.9
    
    
    
    6,885.1
    
    
    
    7,131.5Total Assets
    
    
    35,708.1
    
    
    
    27,602.4
    
    
    
    24,735.8Liabilities and Shareholders EquityIn Pesos, Unadjusted, Including Shareholders Equity
    
    
    28,059.5
    
    
    
    20,513.1
    
    
    
    17,262.1In Pesos, Adjusted by the CER
    
    
    13.6
    
    
    
    14.9
    
    
    
    50.3In Foreign Currency (1)
    
    
    7,635.0
    
    
    
    7,074.3
    
    
    
    7,423.4Total Liabilities and Shareholders Equity
    
    
    35,708.1
    
    
    
    27,602.3
    
    
    
    24,735.8
 (1)
    
    If adjusted to reflect forward sales and purchases of foreign exchange made by
Banco Galicia and recorded off-balance sheet, assets amounted to Ps.10,186.3 million and
liabilities to Ps.10,210.2 million.   -95-




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##### Table of Contents



Results of Operations for the Fiscal Years Ended December 31, 2010, December 31, 2009 and
December 31, 2008
  Net Income/Loss
 Fiscal Year Ended
    
    
    ChangeDecember 31,
    
    
    December 31,2010
    
    
    2009
    
    
    2008
    
    
    2010/2009
    
    
    2009/2008(in millions of Pesos, except percentages)Consolidated Income StatementFinancial Income
    
    
    3,616.1
    
    
    
    3,005.6
    
    
    
    2,559.3
    
    
    
    610.5
    
    
    
    446.3Financial Expenses
    
    
    1,412.7
    
    
    
    1,460.5
    
    
    
    1,421.0
    
    
    
    (47.8
    )
    
    
    39.5Net financial Income
    
    
    2,203.4
    
    
    
    1,545.1
    
    
    
    1,138.3
    
    
    
    658.3
    
    
    
    406.8Provision for Losses on Loans and Other Receivables
    
    
    551.5
    
    
    
    639.5
    
    
    
    395.4
    
    
    
    (88.0
    )
    
    
    244.1Net income from Services
    
    
    1,781.9
    
    
    
    1,310.9
    
    
    
    1,187.9
    
    
    
    471.0
    
    
    
    123.0Administrative Expenses
    
    
    2,845.3
    
    
    
    2,029.1
    
    
    
    1,781.1
    
    
    
    816.2
    
    
    
    248.0Minority Interest
    
    
    (104.3
    )
    
    
    (46.5
    )
    
    
    (35.8
    )
    
    
    (57.8
    )
    
    
    (10.7
    )Income / (Loss) from Equity Investments
    
    
    62.1
    
    
    
    11.3
    
    
    
    56.8
    
    
    
    50.8
    
    
    
    (45.5
    )Miscellaneous Income / (Loss), Net
    
    
    120.8
    
    
    
    233.1
    
    
    
    80.1
    
    
    
    (112.3
    )
    
    
    153.0Income Tax
    
    
    (258.2
    )
    
    
    (156.0
    )
    
    
    (74.0
    )
    
    
    (102.2
    )
    
    
    (82.0
    )Net income / (Loss)
    
    
    408.9
    
    
    
    229.3
    
    
    
    176.8
    
    
    
    179.6
    
    
    
    52.5Return on Average Assets (1)
    
    
    1.8
    
    
    
    1.1
    
    
    
    0.9
    
    
    
    0.6
    
    
    
    0.2Return on Average Shareholders Equity
    
    
    18.6
    
    
    
    11.7
    
    
    
    10.1
    
    
    
    6.9
    
    
    
    1.6
 (1)
    
    For the calculation of the return on average assets, profits or losses corresponding to minority interests are excluded from
net income.   Fiscal Year 2010 Compared to Fiscal Year 2009
  
    
    a Ps.610.5 million increase in financial income, from Ps.3,005.6 million to Ps.3,616.1
million,
 
    
    a Ps.471.0 million increase in net income from services, from Ps.1,310.9 million to
Ps.1,781.9 million,
 
    
    a Ps.88.0 million decrease in provisions for loan losses, from Ps.639.5 million to
Ps.551.5 million,
 
    
    a Ps.47.8 million decrease in financial expenses, from Ps.1,460.5 million to Ps.1,412.7
million,
 
    
    an increase of Ps.50.8 million in income from equity investments, from Ps.11.3 million
to Ps.62.1 million.
  -96-




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##### Table of Contents




    
    a Ps.816.2 million increase in administrative expenses, from Ps.2,029.1 million to
Ps.2,845.3 million,
 
    
    a Ps.112.3 million decrease in miscellaneous net loss, from Ps.233.1 million to Ps.120.8
million, and
 
    
    an increase in income tax of Ps.102.2 million, from Ps.156.0 million to Ps.258.2
million.
  Fiscal Year 2009 Compared to Fiscal Year 2008
  
    
    a Ps.446.3 million increase in financial income, from Ps.2,559.3 million to Ps.3,005.6
million,
 
    
    a Ps.153.0 million increase in miscellaneous net income, from Ps.80.1 million to
Ps.233.1 million, and
 
    
    a Ps.123.0 million increase in net income from services, from Ps.1,187.9 million to
Ps.1,310.9 million.
  
    
    a Ps.244.1 million increase in provisions for loan losses from Ps.395.4 million to
Ps.639.5 million,
 
    
    a Ps.248.0 million increase in administrative expenses, from Ps.1,781.1 million to
Ps.2,029.1 million,
 
    
    an increase in income tax of Ps.82.0 million, from Ps.74.0 million to Ps.156.0 million,
and
 
    
    a decrease of Ps.45.5 million in income from equity investments, from Ps.56.8 million to
Ps.11.3 million.
 Financial Income
  Fiscal Year EndedDecember 31,2010
    
    
    2009
    
    
    2008(in millions of Pesos)Income on Loans and Other Receivables Resulting
from Financial Brokerage and Premiums Earned on
Reverse Repurchases
    
    
    3,061.3
    
    
    
    2,207.7
    
    
    
    1,930.3Income from Government and Corporate Securities, Net
    
    
    409.2
    
    
    
    559.1
    
    
    
    238.1CER Adjustment
    
    
    5.3
    
    
    
    24.4
    
    
    
    123.9Other (1)
    
    
    140.3
    
    
    
    214.4
    
    
    
    267.0Total
    
    
    3,616.1
    
    
    
    3,005.6
    
    
    
    2,559.3
 (1)
    
    Reflects income from financial leases, net, and differences in the quotation of gold and
foreign currency as well as premiums on forward sales of foreign exchange.  -97-




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##### Table of Contents



As of December 31,2010
    
    
    2009
    
    
    2008Average
    
    
    
    
    
    
    Average
    
    
    
    
    
    
    AverageBalance
    
    
    Rate
    
    
    Balance
    
    
    Rate
    
    
    Balance
    
    
    Rate(in millions of Pesos, except rates)Interest-Earning Assets
    
    
    21,983.3
    
    
    
    16.35
    
    
    
    18,378.0
    
    
    
    15.71
    
    
    
    19,892.5
    
    
    
    12.14Government Securities
    
    
    3,344.1
    
    
    
    11.56
    
    
    
    4,686.5
    
    
    
    11.84
    
    
    
    3,642.2
    
    
    
    4.08Loans
    
    
    16,800.8
    
    
    
    18.56
    
    
    
    11,463.6
    
    
    
    19.34
    
    
    
    12,077.3
    
    
    
    17.01Other
    
    
    1,838.4
    
    
    
    4.85
    
    
    
    2,227.9
    
    
    
    5.17
    
    
    
    4,173.0
    
    
    
    5.09Interest-Bearing Liabilities
    
    
    16,662.5
    
    
    
    6.56
    
    
    
    15,923.4
    
    
    
    7.63
    
    
    
    15,694.5
    
    
    
    8.14Current Accounts
    
    
    508.1
    
    
    
    1.08
    
    
    
    1,287.3
    
    
    
    1.00
    
    
    
    948.1
    
    
    
    2.28Savings Accounts
    
    
    4,016.2
    
    
    
    0.19
    
    
    
    3,014.5
    
    
    
    0.19
    
    
    
    2,587.7
    
    
    
    0.18Time Deposits (1)
    
    
    8,554.3
    
    
    
    8.81
    
    
    
    7,391.9
    
    
    
    11.67
    
    
    
    6,769.4
    
    
    
    11.34Argentine Central Bank
    
    
    0.7
    
    
    
    
    
    
    
    0.6
    
    
    
    
    
    
    
    0.4
    
    
    
    Debt Securities
    
    
    2,276.1
    
    
    
    10.04
    
    
    
    2,729.9
    
    
    
    8.22
    
    
    
    2,799.8
    
    
    
    10.00Other Interest-bearing Liabilities
    
    
    1,307.1
    
    
    
    7.50
    
    
    
    1,499.2
    
    
    
    7.34
    
    
    
    2,589.1
    
    
    
    7.86Spread and Net YieldInterest Spread, Nominal Basis (2)
    
    
    
    
    
    
    9.79
    
    
    
    
    
    
    
    8.08
    
    
    
    
    
    
    
    4.00Net Yield on Interest-earning Assets (3)
    
    
    
    
    
    
    11.38
    
    
    
    
    
    
    
    9.10
    
    
    
    
    
    
    
    5.72Financial Margin (4)
    
    
    
    
    
    
    10.02
    
    
    
    
    
    
    
    8.41
    
    
    
    
    
    
    
    5.72
 (1)
    
    Includes restructured deposits certificates and restructured deposits with amparo claims.(2)
    
    Reflects the difference between the average nominal interest rate on interest-earning assets and the average nominal interest rate on interest-bearing liabilities. Interest rates
include the CER adjustment.(3)
    
    Net interest earned divided by average interest-earning assets. Interest rates include the CER adjustment.(4)
    
    Represents net financial income, divided by average interest-earning assets. Fiscal Year 2010 Compared to Fiscal Year 2009
       -98-




---



##### Table of Contents



préstamos
garantizados nacionales
          -99-




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##### Table of Contents



Fiscal Year EndedDecember 31,(in percentages)
    
    2010
    
    
    2009
    
    
    2008Total Deposits
    
    
    5.94
    
    
    
    6.29
    
    
    
    5.93Private-Sector DepositsTotal
    
    
    8.33
    
    
    
    7.81
    
    
    
    7.61Deposits in Current and Savings Accounts and Non-Restructured Time Deposits
    
    
    8.59
    
    
    
    8.07
    
    
    
    7.87Total Loans
    
    
    7.95
    
    
    
    6.91
    
    
    
    6.16Private-Sector Loans
    
    
    8.95
    
    
    
    7.67
    
    
    
    6.12
 Exclusively Banco Galicia. within the Argentine market, based on daily information on deposits and loans prepared
by the Argentine Central Bank. Beginning in June 30, 2010, these figures include deposits and loans corresponding
to CFA. End-of-month balances are used. Deposits and loans include only principal. The Regional Credit Card
Companies data is not included.
 Fiscal Year 2009 Compared to Fiscal Year 2008
        th
  -100-




---



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th
     -101-




---



##### Table of Contents



Financial Expenses
  Fiscal Year EndedDecember 31,2010
    
    
    2009
    
    
    2008(in millions of Pesos)Interest on Deposits
    
    
    765.5
    
    
    
    877.9
    
    
    
    786.1Negotiable Obligations
    
    
    230.8
    
    
    
    284.5
    
    
    
    288.8Contributions and Taxes
    
    
    268.6
    
    
    
    161.7
    
    
    
    135.9CER Adjustment
    
    
    0.1
    
    
    
    0.3
    
    
    
    9.2Other (1)
    
    
    147.6
    
    
    
    136.1
    
    
    
    201.0Total
    
    
    1,412.6
    
    
    
    1,460.5
    
    
    
    1,421.0
 (1)
    
    Includes accrued interest on liabilities resulting from
financial brokerage with banks and international entities and
premiums payable on repurchases. Fiscal Year 2010 Compared to Fiscal Year 2009
         -102-




---



##### Table of Contents



Fiscal Year 2009 Compared to Fiscal Year 2008
       -103-




---



##### Table of Contents



Net Financial Income
 Fiscal Year 2010 compared to Fiscal Year 2009
    -104-




---



##### Table of Contents



Fiscal Year 2009 compared to Fiscal Year 2008
     Provision for Losses on Loans and Other Receivables
 Fiscal Year 2010 compared to Fiscal Year 2009
      -105-




---



##### Table of Contents



Net Income from Services
  Fiscal Year Ended
    
    
    % ChangeDecember 31,
    
    
    December 31,2010
    
    
    2009
    
    
    2008
    
    
    2010/2009
    
    
    2009/2008(in millions of Pesos)
    
    
    (in percentages)Income FromCredit Cards
    
    
    1,576.6
    
    
    
    1,148.2
    
    
    
    952.6
    
    
    
    37.3
    
    
    
    20.5CFA
    
    
    32.9
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Deposits Accounts
    
    
    325.5
    
    
    
    252.9
    
    
    
    201.7
    
    
    
    28.7
    
    
    
    25.4Cash Management
    
    
    24.7
    
    
    
    18.6
    
    
    
    17.8
    
    
    
    32.8
    
    
    
    4.5Safe Deposit Box
    
    
    51.2
    
    
    
    30.2
    
    
    
    18.0
    
    
    
    69.5
    
    
    
    67.8Services for Shipments
    
    
    18.1
    
    
    
    14.9
    
    
    
    11.1
    
    
    
    21.5
    
    
    
    34.2Product Package
    
    
    23.5
    
    
    
    14.3
    
    
    
    11.4
    
    
    
    64.3
    
    
    
    25.4Financial Fees
    
    
    56.7
    
    
    
    50.1
    
    
    
    42.0
    
    
    
    13.2
    
    
    
    19.3Credit-related Fees
    
    
    150.7
    
    
    
    96.5
    
    
    
    95.7
    
    
    
    56.2
    
    
    
    0.8Check Collection
    
    
    44.9
    
    
    
    33.0
    
    
    
    33.9
    
    
    
    36.1
    
    
    
    (2.7
    )Collection Services (Taxes and Utility Bills)
    
    
    36.9
    
    
    
    25.7
    
    
    
    19.5
    
    
    
    43.6
    
    
    
    31.8International Trade
    
    
    67.2
    
    
    
    51.8
    
    
    
    46.1
    
    
    
    29.7
    
    
    
    12.4Other (1)
    
    
    106.0
    
    
    
    90.6
    
    
    
    122.3
    
    
    
    17.0
    
    
    
    (25.9
    )Total Income
    
    
    2,514.9
    
    
    
    1,826.8
    
    
    
    1,572.1
    
    
    
    37.7
    
    
    
    16.2Total Expenses
    
    
    733.0
    
    
    
    515.9
    
    
    
    384.2
    
    
    
    42.1
    
    
    
    34.3Net Income from Services
    
    
    1,781.9
    
    
    
    1,310.9
    
    
    
    1,187.9
    
    
    
    35.9
    
    
    
    10.4
 (1)
    
    Includes, among others, fees from investment banking activities, asset management, assets under custody and
guarantees granted. Fiscal Year 2010 Compared to Fiscal Year 2009
        -106-




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##### Table of Contents



Fiscal Year 2009 Compared to Fiscal Year 2008
        % ChangeDecember 31,
    
    
    December 31,Credit Cards
    
    2010
    
    
    2009
    
    
    2008
    
    
    2010/2009
    
    
    2009/2008(number of credit cards, except otherwise noted)
    
    
    (percentages)Visa
    
    
    1,102,730
    
    
    
    982,866
    
    
    
    936,267
    
    
    
    12.20
    
    
    
    4.98Gold
    
    
    292,400
    
    
    
    262,388
    
    
    
    203,464
    
    
    
    11.44
    
    
    
    28.96International
    
    
    504,687
    
    
    
    471,766
    
    
    
    470,709
    
    
    
    6.98
    
    
    
    0.22Domestic
    
    
    164,120
    
    
    
    189,626
    
    
    
    227,785
    
    
    
    (13.45
    )
    
    
    (16.75
    )Business
    
    
    36,878
    
    
    
    28,430
    
    
    
    20,976
    
    
    
    29.72
    
    
    
    35.54Corporate
    
    
    1,718
    
    
    
    1,130
    
    
    
    960
    
    
    
    52.04
    
    
    
    17.71Platinum
    
    
    102,927
    
    
    
    29,526
    
    
    
    12,373
    
    
    
    248.60
    
    
    
    138.63Galicia Rural
    
    
    8,716
    
    
    
    7,157
    
    
    
    6,215
    
    
    
    21.78
    
    
    
    15.16American Express
    
    
    392,247
    
    
    
    308,942
    
    
    
    241,145
    
    
    
    26.96
    
    
    
    28.11Gold
    
    
    168,899
    
    
    
    143,899
    
    
    
    99,970
    
    
    
    17.37
    
    
    
    43.94International
    
    
    153,526
    
    
    
    145,111
    
    
    
    133,644
    
    
    
    5.80
    
    
    
    8.58Platinum
    
    
    69,822
    
    
    
    19,932
    
    
    
    7,531
    
    
    
    250.30
    
    
    
    164.67MasterCard
    
    
    72,738
    
    
    
    57,276
    
    
    
    54,916
    
    
    
    27.00
    
    
    
    4.30Gold
    
    
    24,613
    
    
    
    19,452
    
    
    
    16,790
    
    
    
    26.53
    
    
    
    15.85MasterCard
    
    
    47,186
    
    
    
    36,670
    
    
    
    36,531
    
    
    
    28.68
    
    
    
    0.38Argencard
    
    
    939
    
    
    
    1,154
    
    
    
    1,595
    
    
    
    (18.63
    )
    
    
    (27.65
    )Regional Credit Card Companies
    
    
    5,365,638
    
    
    
    4,618,199
    
    
    
    4,742,816
    
    
    
    16.18
    
    
    
    (2.63
    )Local Brands
    
    
    3,324,826
    
    
    
    2,944,544
    
    
    
    2,864,709
    
    
    
    12.91
    
    
    
    2.79Visa
    
    
    1,699,240
    
    
    
    1,424,453
    
    
    
    1,628,185
    
    
    
    19.29
    
    
    
    (12.51
    )MasterCard
    
    
    317,759
    
    
    
    221,575
    
    
    
    217,090
    
    
    
    43.41
    
    
    
    2.07American Express
    
    
    23,813
    
    
    
    27,627
    
    
    
    32,832
    
    
    
    (13.81
    )
    
    
    (15.85
    )CFA
    
    
    53,369
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Visa
    
    
    38,834
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    MasterCard
    
    
    14,535
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Total
    
    
    6,995,438
    
    
    
    5,974,440
    
    
    
    5,981,359
    
    
    
    17.09
    
    
    
    (0.12
    )Total Amount of Purchases(in millions of Pesos)
    
    Ps.
    26,880
    
    
    Ps.
    18,142
    
    
    Ps.
    14,949
    
    
    
    48.16
    
    
    
    21.36
  -107-




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##### Table of Contents



Administrative Expenses
  Fiscal Year Ended
    
    
    % ChangeDecember 31,
    
    
    December 31,2010
    
    
    2009
    
    
    2008
    
    
    2010/2009
    
    
    2009/2008(in millions of Pesos)
    
    
    (in percentages)Salaries and Social Security Contributions
    
    
    1,408.0
    
    
    
    975.8
    
    
    
    805.2
    
    
    
    44.3
    
    
    
    21.2Property-related Expenses
    
    
    162.5
    
    
    
    136.1
    
    
    
    113.2
    
    
    
    19.4
    
    
    
    20.2Personnel Services
    
    
    89.3
    
    
    
    76.8
    
    
    
    90.8
    
    
    
    16.3
    
    
    
    (15.4
    )Advertising and Publicity
    
    
    189.6
    
    
    
    127.8
    
    
    
    146.5
    
    
    
    48.4
    
    
    
    (12.8
    )Amount Accrued in Relation to Directors and Syndics Compensation
    
    
    11.4
    
    
    
    8.6
    
    
    
    8.2
    
    
    
    32.6
    
    
    
    4.9Electricity and Communications
    
    
    106.4
    
    
    
    85.9
    
    
    
    72.7
    
    
    
    23.9
    
    
    
    18.2Taxes
    
    
    190.7
    
    
    
    139.3
    
    
    
    104.0
    
    
    
    36.9
    
    
    
    33.9Other
    
    
    687.4
    
    
    
    478.8
    
    
    
    440.5
    
    
    
    43.6
    
    
    
    8.7Total
    
    
    2,845.3
    
    
    
    2,029.1
    
    
    
    1,781.1
    
    
    
    40.2
    
    
    
    13.9
 Fiscal Year 2010 Compared to Fiscal Year 2009
   Fiscal Year 2009 Compared to Fiscal Year 2008
     -108-




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##### Table of Contents



Income/(Loss) from Equity Investments
 Fiscal Year 2010 compared to Fiscal Year 2009
  Fiscal Year 2009 compared to Fiscal Year 2008
  Miscellaneous Income/(Loss), Net
 Fiscal Year 2010 compared to Fiscal Year 2009
  amparo claims
 Fiscal Year 2009 compared to Fiscal Year 2008
  amparo claims
  -109-




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##### Table of Contents



Income Tax
 Fiscal Year 2010 compared to Fiscal Year 2009
  Fiscal Year 2009 compared to Fiscal Year 2008
  
 U.S. GAAP and Argentine Banking GAAP Reconciliation
 General
  Allowances for Loan Losses
   December 31,
    
    
    December 31,
    
    
    December 31,2010
    
    
    2009
    
    
    2008(in millions of Pesos)Argentine Banking GAAP
    
    
    870.2
    (1)
    
    
    815.9
    
    
    
    526.8U.S. GAAPASC 310Allowance for Loan Losses
    
    
    61.6
    
    
    
    64.8
    
    
    
    93.6ASC 450
    
    
    743.1
    
    
    
    687.5
    
    
    
    481.7U.S. GAAP Shareholders Equity Adjustment(2)
    
    
    65.5
    
    
    
    63.6
    
    
    
    (48.5
    )
 (1)
    
    The balance does not include Ps.185,381 of CFA allowances for loan losses as of the acquisition date.(2)
    
    Including qualitative and quantitative adjustments.  -110-




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##### Table of Contents



ASC 310 Analysis
  
    
    With Problems
 
    
    High Risk of Insolvency
 
    
    Uncollectible
  December 31,
2010
    
    
    December 31, 
2009
    
    
    December 31, 
2008(in millions of Pesos)Loan Loss Reserve Under U.S. GAAP  ASC 310 Analysis
    
    
    61.6
    
    
    
    64.8
    
    
    
    93.6
  ASC 450 Analysis
     December 31,
    
    
    December 31,
    
    
    December 31,2010
    
    
    2009
    
    
    2008(in millions of Pesos)Loan Loss Reserve Under U.S. GAAP  ASC 450 Analysis
    
    
    743.1
    
    
    
    687.5
    
    
    
    481.7
  
    
    Loan loss reserves as a percentage of non-accrual loans,
 
    
    Loan loss reserves as a percentage of total amounts past due, and
 
    
    Loan loss reserves as a percentage of past-due unsecured amounts.
  -111-




---



##### Table of Contents



December 31, 
2010
    
    
    December 31, 
2009
    
    
    December 31, 
2008Loan Loss Reserves as a Percentage of Non-accrual Loans
    
    
    163.37
    %
    
    
    108.37
    %
    
    
    141.34
    %Loan Loss Reserves as a Percentage of Total Amounts Past Due
    
    
    116.04
    %
    
    
    130.58
    %
    
    
    171.81
    %Loan Loss Reserves as a Percentage of Past-due Unsecured Amounts
    
    
    189.79
    %
    
    
    154.29
    %
    
    
    190.78
    %
  Carrying Value of Certain Government Securities and Receivables for Government Securities
          -112-




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##### Table of Contents



December 31, 2010
    
    
    December 31, 2009Book
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    BookValue
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    ValueAmortized
    
    
    Argentine
    
    
    
    
    
    
    
    
    
    
    Shareholders
    
    
    Amortized
    
    
    Argentine
    
    
    
    
    
    
    
    
    
    
    ShareholdersCost US
    
    
    Banking
    
    
    Market
    
    
    Unrealized
    
    
    Equity
    
    
    Cost US
    
    
    Banking
    
    
    Market
    
    
    Unrealized
    
    
    Equity(In millions of Pesos)
    
    GAAP
    
    
    GAAP
    
    
    Value
    
    
    (Loss)/Gain
    
    
    Adjustment
    
    
    GAAP
    
    
    GAAP
    
    
    Value
    
    
    (Loss)/Gain
    
    
    AdjustmentBoden 2012 Bonds
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    901.0
    
    
    
    1,906.9
    
    
    
    1,731.1
    
    
    
    830.1
    
    
    
    (175.8
    )Discount Bonds
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    169.9
    
    
    
    622.0
    
    
    
    337.9
    
    
    
    132.2
    
    
    
    (284.1
    )Bonar 2015 Bonds
    
    
    527.9
    
    
    
    642.1
    
    
    
    726.6
    
    
    
    198.7
    
    
    
    84.5
    
    
    
    591.5
    
    
    
    359.0
    
    
    
    676.6
    
    
    
    85.0
    
    
    
    (317.6
    )
 Foreign Debt Restructuring
        -113-




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##### Table of Contents



Securitizations
  As of December 31,2010
    
    
    2009(In millions of Pesos)Book Value
    
    
    Fair Value 
    
    
    U.S. GAAP
    
    
    Book Value
    
    
    Fair Value 
    
    
    U.S. GAAPArgentine
    
    
    Book value
    
    
    Shareholders
    
    
    Argentine
    
    
    Book value
    
    
    ShareholdersBanking
    
    
    under U.S.
    
    
    Equity
    
    
    Banking
    
    
    under U.S.
    
    
    EquityGAAP
    
    
    GAAP
    
    
    Adjustment
    
    
    GAAP
    
    
    GAAP
    
    
    AdjustmentGaltrust I (1)
    
    
    521.9
    
    
    
    521.9
    
    
    
    
    
    
    
    584.1
    
    
    
    211.6
    
    
    
    (372.5
    )Financial Trust Galicia (2)
    
    
    96.3
    
    
    
    36.2
    
    
    
    (60.1
    )
    
    
    80.0
    
    
    
    28.7
    
    
    
    (51.3
    )Others
    
    
    13.5
    
    
    
    19.5
    
    
    
    6.0
    
    
    
    56.5
    
    
    
    51.0
    
    
    
    (5.5
    )Total
    
    
    631.7
    
    
    
    577.6
    
    
    
    (54.1
    )
    
    
    720.6
    
    
    
    291.3
    
    
    
    (429.3
    )
 (1) Financial Trust Galtrust I
      December 31, 2009 and 2008
     December 31, 2010
   -114-




---



##### Table of Contents




    
    Insufficient equity investment at risk
 
    
    Equity lacks decision-making rights
 
    
    Equity with non-substantive voting rights
 
    
    Lacking the obligation to absorb an entitys expected losses
 
    
    Lacking the right to receive an entitys expected residual returns
     (2) Financial Trust Galicia
     -115-




---



##### Table of Contents



BG Financial Trust
  Additional information required by U.S. GAAP
  As of December 31,(In millions of Pesos)
    
    2010
    
    
    2009Cash and Due from Banks
    
    Ps.
    11.6
    
    
    Ps.
    15.2Government Securities
    
    
    1,009.2
    
    
    
    Loans (Net of Allowances)
    
    
    
    
    
    
    463.8Other Assets
    
    
    1.1
    
    
    
    8.8Total Assets
    
    Ps.
    1,021.9
    
    
    Ps.
    487.8Debt Securities
    
    Ps.
    414.5
    
    
    Ps.
    279.6Certificates of Participation
    
    
    604.7
    
    
    
    193.3Other Liabilities
    
    
    2.7
    
    
    
    14.9Total Liabilities
    
    Ps.
    1,021.9
    
    
    Ps.
    487.8
  Other transfers of financial assets accounted for as sales under U.S. GAAP
     -116-




---



##### Table of Contents



Negative Goodwill  Compañía Financiera Argentina and subsidiaries
  (Comisión Nacional de Defensa de la Competencia)
     -117-




---



##### Table of Contents




    
    If the consideration transferred exceeds the fair value of assets
acquired and liabilities assumed, the acquirer shall recognize goodwill as
of the acquisition date, or,
 
    
    If the consideration transferred is lower than the fair value of assets
acquired and liabilities assumed, the acquirer shall recognize the
resulting gain in earnings on the acquisition date.
    Income Tax
       -118-




---



##### Table of Contents



Summary
  Net Income (Loss)
    
    
    Shareholders Equity (Deficit)Argentine Banking
    
    
    
    
    
    
    Argentine BankingGAAP
    
    
    U.S. GAAP
    
    
    GAAP
    
    
    U.S. GAAP(in millions of Pesos)Fiscal Year 2010
    
    
    408.9
    
    
    
    2,293.6
    
    
    
    2,469.5
    
    
    
    2,997.1Fiscal Year 2009
    
    
    229.3
    
    
    
    770.2
    
    
    
    2,052.5
    
    
    
    1,236.3Fiscal Year 2008
    
    
    176.8
    
    
    
    (1,171.0
    )
    
    
    1,845.7
    
    
    
    (754.4
    )
  
    
    Bonar 2015 Bonds are reflected at market values, with changes from market values at
the time of exchange being recognized as other comprehensive income. With the improvement
in the Argentine economy, market values have increased, with a favorable influence on our
financial position.
 
    
    The difference between the consideration transferred for the acquisition of Compañía
Financiera Argentna S.A. and Cobranzas y Servicicios S.A. and the fair value of the
assets acquired and liabilities assumed was recognized as a gain in earnings on the
acquisition date. Instead, under Argentine Banking GAAP, such difference was recorded
under Liabilities-Provisions.
 Pursuant to the Argentine Central Bank regulations, the negative goodwill has to be charged
to Income with regard to the causes that have originated it, not to exceed a 60-month
straight-line method amortization.
 
    
    The recognition of the Deffered Income Taxes under U.S. GAAP due to the fact that we
consider that it is more likely than not that it will recover the net operating tax loss
carryforward, the temporary differences and the presumed minimum income tax, with future
taxable income. In addition, according to the taxable income projections, we estimated
that the presumed minimum income tax will be utilized during the following years 2011 and
2012. Therefore, no valuation allowance was provided against presumed minimum income tax.
As of December 31, 2009 we have recorded a valuation allowance against the presumed
minimum income tax.
  
    
    The sale of Boden 2012 Bonds and Discount Bonds generated a significant income for
U.S. GAAP due to as of December 31, 2009 an unrealized gain was recorded under Other
Comprehensive Income.
 
    
    The difference between the consideration transferred for the acquisition of Compañía
Financiera Argentina and Cobranzas y Servicios S.A. and the fair value of the assets
acquired and liabilities assumed was recognized as a gain in earnings on the acquisition
date. Instead, under Argentine Banking GAAP, the negative goodwill is charged to Income
on a straight-line basis during 60 months.
 
    
    The recognition of the Deffered Income Taxes under U.S. GAAP due to the fact that we
consider that it is more likely than not that it will recover the net operating tax loss
carryforward, the temporary differences and the presumed minimum income tax, with future
taxable income. In addition, according to the taxable income projections, we estimated
that the presumed minimum income tax will be utilized during the following years 2011 and
2012. Therefore, no valuation allowance was provided against presumed minimum income tax.
As of December 31, 2009 we have recorded a valuation allowance against the presumed
minimum income tax.
  -119-




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##### Table of Contents



Results by Segments
    
    
    Banking: our banking business segment represents Banco Galicia consolidated line by
line with Galicia Uruguay, Galicia Cayman and its subsidiaries and the results of other
small banking-related subsidiaries.
 
    
    Regional Credit Cards: our regional credit cards business segment represents the
accounts of Tarjetas Regionales S.A. consolidated with its subsidiaries.
 
    
    CFA Personal Loans: the CFA Groups business segment primarily extends unsecured
personal loans to low and middle-income segments of the Argentine population, with
Cobranzas & Servicios S.A. and Procesadora Regional S.A. primarily providing processing
services to CFA.
 
    
    Insurance: our insurance business segment represents the accounts of Sudamericana and
its subsidiaries.
 
    
    Other Grupo Businesses: this segment includes the results of Net Investment, Galicia
Warrants, GV Mandataria and Galval.
  Banking
  As of December 31,In millions of Pesos, except percentages
    
    2010
    
    
    2009
    
    
    2008Net Financial Income
    
    
    1,428.0
    
    
    
    1,144.2
    
    
    
    847.3Net Income from Services
    
    
    880.6
    
    
    
    727.9
    
    
    
    655.0Net Operating Revenue
    
    
    2,308.6
    
    
    
    1,872.1
    
    
    
    1,502.3Provisions for Loan Losses
    
    
    307.2
    
    
    
    388.7
    
    
    
    214.9Administrative Expenses
    
    
    1,693.1
    
    
    
    1,321.8
    
    
    
    1,166.5Net Operating Income
    
    
    308.3
    
    
    
    161.6
    
    
    
    120.9Income from Equity InvestmentsTarjetas Regionales SA
    
    
    270.5
    
    
    
    133.0
    
    
    
    76.4Compañía Financiera Argentina S.A.(*)
    
    
    133.3
    
    
    
    
    
    
    
    Sudamericana
    
    
    4.0
    
    
    
    3.4
    
    
    
    2.9Others
    
    
    13.7
    
    
    
    13.1
    
    
    
    58.1Income from Equity Investments
    
    
    421.5
    
    
    
    149.5
    
    
    
    137.4Other Income (Loss)
    
    
    (260.6
    )
    
    
    (139.3
    )
    
    
    (63.0
    )Net Income
    
    
    469.1
    
    
    
    171.8
    
    
    
    195.3Net Income as a % of Grupo Financiero Galicias Net Income
    
    
    115
    %
    
    
    75
    %
    
    
    110
    %Average Loans
    
    
    12,818.6
    
    
    
    8,959.4
    
    
    
    8,707.5Average Deposits
    
    
    18,112.0
    
    
    
    14,765.9
    
    
    
    13,199.0
 (*)
    
    Includes negative amortization of goodwill.  -120-




---



##### Table of Contents



-121-




---



##### Table of Contents



amparo claims amparo claims amparo
claims amparo
claims
 Regional Credit Cards
  As of December 31,In millions of Pesos, except percentages
    
    2010
    
    
    2009
    
    
    2008Net Financial Income
    
    
    503.4
    
    
    
    375.5
    
    
    
    296.2Net Income from Services
    
    
    1,040.1
    
    
    
    737.0
    
    
    
    571.8Net Operating Revenue
    
    
    1,543.5
    
    
    
    1,112.5
    
    
    
    868.0Provisions for Loan Losses
    
    
    199.5
    
    
    
    250.8
    
    
    
    180.4Administrative Expenses
    
    
    905.0
    
    
    
    621.9
    
    
    
    554.5Net Operating Income
    
    
    439.0
    
    
    
    239.8
    
    
    
    133.1Other Income (Loss)
    
    
    101.7
    
    
    
    54.9
    
    
    
    45.2Minority Interests
    
    
    (78.4
    )
    
    
    (32.6
    )
    
    
    (20.6
    )Pre-tax Income
    
    
    462.3
    
    
    
    262.1
    
    
    
    157.7Income Tax Provision
    
    
    191.8
    
    
    
    129.1
    
    
    
    81.3Net Income
    
    
    270.5
    
    
    
    133.0
    
    
    
    76.4Net Income as a % of Grupo Financiero Galicias Net Income
    
    
    66
    %
    
    
    58
    %
    
    
    43
    %Average Loans
    
    
    3,341.8
    
    
    
    2,402.5
    
    
    
    2,105.0
      -122-




---



##### Table of Contents




    
    average statements issued: 11.7% growth between December 31, 2010 and December 31, 2009,
reaching an annual average of 2.2 million customers;
 
    
    increase in retail sales: 43%, from Ps.9,311 million as of December 31, 2009 to
Ps.13,317 million as of December 31, 2010;
 
    
    increase in loan portfolio (including managed portfolio): 44.2%, amounting to Ps.6,940
million during the fiscal year ended December 31, 2010;
 
    
    increase in the number of purchase transactions: 17.3%, reaching 90.7 million during the
fiscal year ended December 31, 2010; and
 
    
    increase in the size of the distribution network: 11%, reaching a total of 231 service
centers as of December 31, 2010.
   
    
    average statements issued: 6.6%, reaching 1.85 million on annual average;
 
    
    loan portfolio (including managed portfolio): 3.8%, amounting to Ps.3,376 million at
year-end;
 
    
    turnover: 20%, reaching Ps.9,061 million on an annual basis;
 
    
    number of purchase transactions: 10.5%, reaching 74.7 million during the year;
 
    
    the size of the distribution network remained unchanged: 209 service centers; and
 
    
    the number of personnel remained almost unchanged, reaching 3,936 employees as of
December 31, 2009.
     -123-




---



##### Table of Contents



CFA Personal Loans
  As of December 31,In millions of Pesos, except percentages
    
    2010(*)Net Financial Income
    
    
    282.0Net Income from Services
    
    
    25.9Net Operating Revenue
    
    
    307.9Provisions for Loan Losses
    
    
    44.8Administrative Expenses
    
    
    159.2Net Operating Income
    
    
    103.9Other Income (Loss)
    
    
    37.5Pre-tax Income
    
    
    141.4Income Tax Provision
    
    
    51.2Net Income
    
    
    90.2Net Income as a % of Grupo Financiero Galicias Net Income
    
    
    22
    %Average Loans
    
    
    640.4Average Deposits
    
    
    116.5
 (*)
    
    Results of operations correspond to the second half of the fiscal year ended December 31,
2010, subsequent to the Banks acquisition of CFA Group.      Insurance
  As of September 30,In millions of Pesos, except percentages
    
    2010
    
    
    2009
    
    
    2008Net Financial Income
    
    
    28.7
    
    
    
    28.5
    
    
    
    20.2Net Operating Revenue
    
    
    28.7
    
    
    
    28.5
    
    
    
    20.2Administrative Expenses
    
    
    56.2
    
    
    
    42.9
    
    
    
    30.0Net Operating Income
    
    
    (27.5
    )
    
    
    (14.4
    )
    
    
    (9.8
    )Other Income (Loss)
    
    
    75.1
    
    
    
    55.3
    
    
    
    43.5Pre-tax Income
    
    
    47.6
    
    
    
    40.9
    
    
    
    33.7Income Tax Provision
    
    
    16.3
    
    
    
    14.1
    
    
    
    11.1Net Income
    
    
    31.3
    
    
    
    26.8
    
    
    
    22.6Net Income as a % of Grupo Financiero Galicias Net Income
    
    
    8
    %
    
    
    12
    %
    
    
    13
    %
  -124-




---



##### Table of Contents



Other Grupo Businesses
    -125-




---



##### Table of Contents



Consolidated Assets
  As of December 31,2010
    
    
    2009
    
    
    2008Amounts
    
    
    %
    
    
    Amounts
    
    
    %
    
    
    Amounts
    
    
    %(in millions of Pesos, except percentages)Cash and Due from Banks
    
    
    5,645.6
    
    
    
    15.8
    
    
    
    3,696.3
    
    
    
    13.4
    
    
    
    3,405.1
    
    
    
    13.8Government and Corporate Securities
    
    
    2,278.0
    
    
    
    6.4
    
    
    
    3,920.4
    
    
    
    14.2
    
    
    
    1,531.9
    
    
    
    6.2Loans
    
    
    21,353.8
    
    
    
    59.8
    
    
    
    13,477.9
    
    
    
    48.8
    
    
    
    11,774.6
    
    
    
    47.6Other Assets
    
    
    6,430.7
    
    
    
    18.0
    
    
    
    6,507.8
    
    
    
    23.6
    
    
    
    8,024.2
    
    
    
    32.4Total
    
    
    35,708.1
    
    
    
    100.0
    
    
    
    27,602.4
    
    
    
    100.0
    
    
    
    24,735.8
    
    
    
    100.0
     
    
    The Other Assets item mainly includes the following items recorded on our balance
sheet under Other Receivables Resulting from Financial Brokerage, unless otherwise noted:
Ps.1,483.6 million recorded under Bank Premises and Equipment, Miscellaneous Assets and
Intangible Assets.
 
    
    Ps.521.9 million corresponding to our holdings of debt securities and participation
certificates issued by the Galtrust I Financial Trust, resulting from the securitization of
loans to the provincial public sector in late 2000.
 
    
    Ps.508.4 million of forward purchases of Bonar 2015 Bonds in connection with repurchase
agreement transactions (including the corresponding security margins recorded as
Miscellaneous Receivables in the balance sheet).
 
    
    Ps.428.1 million corresponding to Assets under Financial Leases.
 
    
    Ps.399.4 million of forward purchases in connection with repurchase agreement
transactions.
 
    
    Ps.395.7 million corresponding to the minimum presumed income tax recorded under
Miscellaneous Receivables.
 
    
    Ps.379.6 million corresponding to balances deposited at the Argentine Central Bank as
guarantees in favor of clearing houses.
 
    
    Ps.271.7 million corresponding to participation certificates in, and debt securities of,
different financial trusts, created by Banco Galicia or by third parties.
 
    
    Ps.168.5 million corresponding to holdings of the participation certificate in, and debt
securities of, the special fund (referred to as Special Fund Former Almafuerte Bank)
jointly formed by Banco Galicia with other private-sector banks in order to facilitate the
recovery of the assets of former Almafuerte Bank.
 
    
    Ps.52.9 million corresponding to equity investments.
  -126-




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##### Table of Contents



amparo claims
 
 Exposure to the Argentine Public Sector
  As of December 31,2010
    
    
    2009
    
    
    2008(in millions of Pesos)Net Position in Government Securities
    
    
    3,111.7
    
    
    
    4,933.0
    
    
    
    3,645.3Trading and Investment Accounts
    
    
    2,469.6
    
    
    
    1,810.5
    
    
    
    627.6Boden 2012 Bonds
    
    
    
    
    
    
    1,906.9
    
    
    
    2,350.8Nobac 2010
    
    
    
    
    
    
    269.9
    
    
    
    Bonar 2015 Bonds
    
    
    642.1
    
    
    
    323.7
    
    
    
    Discount Bonds in Pesos and GDP-Linked Negotiable Securities
    
    
    
    
    
    
    622.0
    
    
    
    666.9Loans
    
    
    24.6
    
    
    
    25.4
    
    
    
    1,480.7Financial Sector
    
    
    
    
    
    
    
    
    
    
    107.1Secured Loans and Others
    
    
    24.6
    
    
    
    25.4
    
    
    
    1,373.6Other Receivables Resulting from Financial Brokerage
    
    
    808.2
    
    
    
    924.6
    
    
    
    928.3Trusts Certificates of Participation and Securities
    
    
    807.0
    
    
    
    923.7
    
    
    
    927.5Other
    
    
    1.2
    
    
    
    0.9
    
    
    
    0.8Total Assets(1)
    
    
    3,944.5
    
    
    
    5,883.0
    
    
    
    6,054.3
 (1)
    
    Does not include deposits with the Argentine Central Bank, which constitute one of the items by which
Banco Galicia complies with the Argentine Central Banks minimum cash requirements.   th
  -127-




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Securitization of Assets
   
 Funding
        -128-




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##### Table of Contents



December 31,2010
    
    
    2009
    
    
    2008Amounts
    
    
    %
    
    
    Amounts
    
    
    %
    
    
    Amounts
    
    
    %(in millions of Pesos, except percentages)Deposits
    
    
    22,222.8
    
    
    
    62.2
    
    
    
    17,039.4
    
    
    
    61.7
    
    
    
    14,056.1
    
    
    
    56.8Current Accounts and Other Demand Deposits
    
    
    5,565.7
    
    
    
    15.6
    
    
    
    3,719.1
    
    
    
    13.5
    
    
    
    3,105.4
    
    
    
    12.6Savings Accounts
    
    
    6,362.0
    
    
    
    17.8
    
    
    
    4,994.7
    
    
    
    18.1
    
    
    
    4,035.0
    
    
    
    16.3Time Deposits
    
    
    9,724.9
    
    
    
    27.2
    
    
    
    7,954.8
    
    
    
    28.8
    
    
    
    6,548.1
    
    
    
    26.5Other Deposits
    
    
    463.2
    
    
    
    1.3
    
    
    
    248.7
    
    
    
    0.9
    
    
    
    263.2
    
    
    
    1.1Accrued Interest, Quotation Differences and CER Adjustment
    
    
    107.0
    
    
    
    0.3
    
    
    
    122.1
    
    
    
    0.4
    
    
    
    104.5
    
    
    
    0.4Debt with Financial Institutions(1)
    
    
    2,114.5
    
    
    
    5.9
    
    
    
    1,480.1
    
    
    
    5.4
    
    
    
    2,172.9
    
    
    
    8.8Domestic Financial Institutions
    
    
    668.3
    
    
    
    1.9
    
    
    
    322.3
    
    
    
    1.2
    
    
    
    248.6
    
    
    
    1.0International Banks and Credit Agencies
    
    
    649.5
    
    
    
    1.8
    
    
    
    548.1
    
    
    
    2.0
    
    
    
    941.5
    
    
    
    3.8Repurchases
    
    
    796.7
    
    
    
    2.2
    
    
    
    609.7
    
    
    
    2.2
    
    
    
    982.8
    
    
    
    4.0Negotiable Obligations (Unsubordinated and Subordinated)(1)
    
    
    2,041.7
    
    
    
    5.7
    
    
    
    2,716.6
    
    
    
    9.8
    
    
    
    2,932.5
    
    
    
    11.9Other obligations
    
    
    6,859.6
    
    
    
    19.2
    
    
    
    4,314.0
    
    
    
    15.6
    
    
    
    3,728.6
    
    
    
    15.0Shareholders Equity
    
    
    2,469.5
    
    
    
    6.9
    
    
    
    2,052.5
    
    
    
    7.4
    
    
    
    1,845.7
    
    
    
    7.5Total Funding
    
    
    35,708.1
    
    
    
    100.0
    
    
    
    27,602.6
    
    
    
    100.0
    
    
    
    24,735.8
    
    
    
    100.0
 (1)
    
    Includes accrued interest, quotation differences, and CER adjustment where applicable.    -129-




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##### Table of Contents




    
    Ps.1,188.8 million of 2019 Notes, issued in 2004 and corresponding to new debt of
Banco Galicia resulting from the foreign debt restructuring completed in May of said
year.
 
    
    Ps.147.3 million of class XII negotiable obligations, maturing in 2011, issued by
Tarjeta Naranja S.A.
 
    
    Ps.58.0 million of class IX series II negotiable obligations, in 2011, issued by
Tarjeta Naranja S.A.
 
    
    Ps.79.8 million of series XXII negotiable obligations, maturing in 2011, issued by
Tarjetas Cuyanas S.A.
 
    
    Ps.70.5 million and Ps.106.8 million of class II series II and III negotiable
obligations, respectively, maturing in 2012 and 2013, issued by Grupo Financiero Galicia.
 
    
    Ps.42.1 million of class I series II negotiable obligations, maturing in 2011, issued
by Grupo Financiero Galicia.
 
    
    Ps.6.7 million of past due foreign debt included in Banco Galicias 2004 debt
restructuring, the holders of which did not participate in such restructuring.
     -130-




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##### Table of Contents



Ratings
  LOCAL RATINGS
 Standard &
    
    
    
    EvaluadoraPoors
    
    Fitch Argentina
    
    Latinoamericana
    
    MoodysGrupo Financiero Galicia S.A.Rating of Shares
    
    1Short-/Medium Term Debt(1)
    
    
    
    
    
    AA-Banco de Galicia y Buenos Aires S.A.Counterparty Rating
    
    raAA-Long-Term Debt (2) (3)
    
    raAA-
    
    
    
    
    
    Aa3.arSubordinated Debt (2) (4)
    
    raA+
    
    
    
    A+
    
    Aa3.arDeposits (Long Term / Short Term)
    
    raAA- / raA-1+Deposits (Local Currency / Foreign Currency)
    
    
    
    
    
    
    
    Aa2.ar / Ba1.arTrustee
    
    
    
    
    
    
    
    TQ1(-).arTarjeta Naranja S.A.Medium-/Long-Term Debt (2) (5)
    
    
    
    AA(arg)Short-Term Debt (2) (6)
    
    
    
    A1+(arg)Tarjetas Cuyanas S.A.Long-Term Debt (2) (7)
    
    
    
    AA-(arg)Short-Term Debt (2) (8)
    
    
    
    A1(arg)CFA S.A.Long-Term Debt (9)
    
    
    
    AA-(arg)
    
    
    
    Aa2.arShort-Term Debt (10)
    
    
    
    A1(arg)
    
    
    
    Aa2.arDeposits (Local Currency / Foreign Currency)
    
    
    
    
    
    
    
    Aa2.ar / Ba1.arINTERNATIONAL RATINGSBanco de Galicia y Buenos Aires S.A.Long-Term Debt (2) (3)
    
    B
    
    
    
    
    
    B2Tarjeta Naranja S.A.Medium-/Long-Term Debt (2) (11)
    
    
    
    BTarjetas Cuyanas S.A.Long-Term Debt (2) (12)
    
    
    
    B
 (1)
    
    Class I series II, class II series II and class II series III negotiable
obligations.(2)
    
    See -Contractual Obligations.(3)
    
    Class I negotiable obligations.(4)
    
    Subordinated Negotiable Obligations Due in 2019.(5)
    
    Class IV, class IX series II, class XII and class XIII negotiable obligations.(6)
    
    Class XI negotiable obligations.(7)
    
    Class I series II, class III and series XVIII negotiable obligations.(8)
    
    Class II and class IV negotiable obligations.(9)
    
    Class III series II negotiable obligations.(10)
    
    Class III series I negotiable obligations.(11)
    
    Class IV, class XII and class XIII negotiable obligations.(12)
    
    Class XVIII negotiable obligations. Debt Programs
    -131-




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-132-




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##### Table of Contents



Contractual Obligations
  Annual
    
    
    
    
    
    
    Less than
    
    
    1 to 3
    
    
    3 to 5
    
    
    Over 5Maturity
    
    
    Interest Rate
    
    
    Total
    
    
    1 Year
    
    
    Years
    
    
    Years
    
    
    YearsGrupo Financiero GaliciaNegotiable Obligations Series II Due 2011 (US$)
    
    
    2011
    
    
     12.50%
    
    
    42.8
    
    
    
    42.8
    
    
    
    
    
    
    
    
    
    
    
    Negotiable Obligations Class II Series II Due 2012
(US$)
    
    
    2012
    
    
     8.00%
    
    
    71.2
    
    
    
    0.7
    
    
    
    70.5
    
    
    
    
    
    
    
    Negotiable Obligations Class II Series III Due 2013
(US$)
    
    
    2013
    
    
     9.00%
    
    
    107.5
    
    
    
    0.7
    
    
    
    106.8
    
    
    
    
    
    
    
    Banco GaliciaDepositsTime Deposits (Pesos/US$)
    
     Various
    
    Various
    
    
    9,862.1
    
    
    
    9,826.8
    
    
    
    35.0
    
    
    
    0.2
    
    
    
    0.1Bonds2019 Notes (US$) (1) (2)
    
    
    2019
    
    
     11.00%
    
    
    1,253.0
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    1,253.09% Notes Due 2003 (US$) (3)
    
    
    2003
    
    
     9.00%
    
    
    12.2
    
    
    
    12.2
    
    
    
    
    
    
    
    
    
    
    
    LoansFloating Rate Loans Due 2019 (US$) (1) (4)
    
    
    2019
    
    
    Libor + 578 bp
    
    
    8.5
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    8.5IFC Financial Loans (US$)
    
     Various
    
    Libor + 350 bp
    
    
    230.6
    
    
    
    68.7
    
    
    
    120.9
    
    
    
    41.0
    
    
    
    Other Financial Loans (US$) (5)
    
    
    2010
    
    
    Various
    
    
    410.0
    
    
    
    410.0
    
    
    
    
    
    
    
    
    
    
    
    IDB Financial Loans (Pesos)
    
     Various
    
    Various
    
    
    54.9
    
    
    
    12.0
    
    
    
    21.4
    
    
    
    12.6
    
    
    
    8.9Fontar Financial Loans (Pesos)
    
     Various
    
    Various
    
    
    47.7
    
    
    
    14.7
    
    
    
    20.1
    
    
    
    8.9
    
    
    
    4.0BICE Financial Loans (Pesos)
    
     Various
    
    Various
    
    
    10.2
    
    
    
    2.7
    
    
    
    4.6
    
    
    
    2.9
    
    
    
    BICE Financial Loans (US$)
    
     Various
    
    Various
    
    
    13.7
    
    
    
    2.9
    
    
    
    5.5
    
    
    
    5.3
    
    
    
    Repurchases (Pesos) (6)
    
    
    2010
    
    
    Various
    
    
    359.1
    
    
    
    359.1
    
    
    
    
    
    
    
    
    
    
    
    Repurchases (US$) (6)
    
    
    2010
    
    
    Various
    
    
    437.7
    
    
    
    40.1
    
    
    
    397.6
    
    
    
    
    
    
    
    Tarjetas Regionales S.A.Financial Loans with Local Banks (Pesos)
    
     Various
    
    Various
    
    
    376.5
    
    
    
    190.4
    
    
    
    186.1
    
    
    
    
    
    
    
    Negotiable Obligations (Pesos/US$)
    
     Various
    
    Various
    
    
    552.5
    
    
    
    543.7
    
    
    
    8.8
    
    
    
    
    
    
    
    CFALocal Financing (Pesos)
    
     Various
    
    Various
    
    
    212.5
    
    
    
    137.5
    
    
    
    75.0
    
    
    
    
    
    
    
    Total
    
    
    
    
    
    
    
    
    
    
    4,200.6
    
    
    
    1,838.2
    
    
    
    1,017.3
    
    
    
    70.7
    
    
    
    1,274.4
 Principal and interest. Includes the CER adjustment, where applicable.
 (1)
    
    Issued in 2004 as part of the restructuring of the foreign debt of Banco Galicias Head Office and its Cayman Branch.(2)
    
    Subordinated Notes Due 2019: Interest paid in cash: 6% per annum from January 1, 2004 until (but not including) January 1, 2014, payable semiannually, on January 1 and July 1 of each year,
beginning on July 1, 2004. Unless the notes are previously redeemed, the annual interest rate will increase to 11% per annum from that date until (but not including) January 1, 2019. Interest paid in
additional subordinated negotiable obligations due 2019: 5% per annum from January 1, 2004, to be paid on January 1, 2014 and January 1, 2019. Principal amortizes in full on January 1, 2019, unless
the notes are previously redeemed at par plus accrued but unpaid interest, in whole or in part, at Banco Galicias option, at any time after the 2010 Notes and the 2014 Notes have been repaid in full
and, otherwise, in accordance with the terms of the agreements governing such notes.(3)
    
    The balance represents debt not tendered by its holders to the exchange offered by Banco Galicia to restructure its foreign debt, which was completed in May 2004.(4)
    
    Interest payable in cash: Libor+78 b.p., per annum from January 1, 2004, until (but not including) January 1, 2014, payable semiannually, on January 1 and July 1 of each year, beginning on July
1, 2004. Unless the loans are previously redeemed, the annual interest rate will increase to Libor+578 b.p. per annum from that date until (but not including) January 1, 2019. Also pays interest in
additional subordinated loans, due 2019: 5% per annum from January 1, 2004, to be paid on January 1, 2014 and January 1, 2019. Principal amortizes in full on January 1, 2019 unless the loans are
previously redeemed at part plus accrued interest and additional amounts, if any, in whole or in part at Banco Galicias option, in accordance with the terms of the agreements governing such loans.(5)
    
    Borrowings to finance international trade operations to Bank customers.(6)
    
    Includes premiums.  -133-




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##### Table of Contents



Off- Balance Sheet Contractual Obligations
 Operating Leases
  (In millions of Pesos)2011
    
    
    50.402012
    
    
    61.492013
    
    
    71.942014
    
    
    80.572015
    
    
    88.632016 and After
    
    
    95.72Total
    
    
    448.75
 Other
   
 Off-Balance Sheet Arrangements
   Commitments to Extend Credit, Stand-By Letters of Credit and Guarantees Granted
      -134-




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##### Table of Contents



December 31,2010(in millions of Pesos)Commitments to Extend Credit
    
    
    1,840.2Standby Letters of Credit
    
    
    335.8Guarantees Granted
    
    
    213.8Acceptances
    
    
    111.7
    December 31,2010(in millions of Pesos)Preferred Counter Guarantees
    
    
    15.5Other Counter Guarantees
    
    
    48.6
  Other
  December 31, 
2010(in millions of Pesos)Checks Drawn on Banco Galicia
    
    
    419.4Checks Drawn on Other Banks
    
    
    529.2Bills and Other Items for Collection
    
    
    3,575.9
    
 Critical Accounting Policies
   -135-




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##### Table of Contents



Allowance for Loan Losses
    Other Receivables Resulting from Financial Brokerage and Miscellaneous Receivables
  Goodwill
   
 U.S. GAAP  Critical Accounting Policies
  Other-than-temporary impairment
       -136-




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##### Table of Contents



Allowance for Loan Losses
         -137-




---



##### Table of Contents



Fair Value Estimates
    Fair Value Hierarchy
   
    
    Level 1: inputs to the valuation methodology are quoted prices (unadjusted) for
identical assets or liabilities in active markets.
 
    
    Level 2: inputs to the valuation methodology include quoted prices for similar assets
and liabilities in active markets, and inputs that are observable for the asset or
liability, either directly or indirectly, for substantially the full term of the asset or
liability.
 Inputs include the following:
 (a)
    
    Quoted prices for similar assets or liabilities in active markets;(b)
    
    Quoted prices for identical or similar assets or liabilities in
non-active markets;(c)
    
    Pricing models whose inputs are observable for substantially the full
term of the asset or liability; and(d)
    
    Pricing models whose inputs are derived principally from or corroborated
by observable market data through correlation or other means.
 
    
    Level 3: inputs to the valuation methodology are unobservable and significant to the
fair value measurement.
  -138-




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##### Table of Contents



Determination of Fair Value
   Impairment of Assets Other Than Loans
     Deferred Tax Asset Valuation Allowance
    -139-




---



##### Table of Contents



Assets Not Recognized Under U.S. GAAP
  amparo amparo
 Securitizations
    
    
    Insufficient equity investment at risk
 
    
    Equity lacks decision-making rights
 
    
    Equity with non-substantive voting rights
 
    
    Lacking the obligation to absorb an entitys expected losses
 
    
    Lacking the right to receive an entitys expected residual returns
  -140-




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##### Table of Contents



Exchange of Assets
    
 Principal Trends
 Related to Argentina
     -141-




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##### Table of Contents



Related to the Financial System
  Related to Us
    
 Item 5.B.
    
    Liquidity and Capital Resources
 
 Liquidity  Holding Company on an Individual Basis
  the
    -142-




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##### Table of Contents



-143-




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##### Table of Contents



Consolidated Cash Flows
     December 31,2010
    
    
    2009
    
    
    2008(in millions of Pesos)Funds (1) at the Beginning of the Fiscal Year
    
    Ps.
    5,428.7
    
    
    Ps.
    4,795.4
    
    
    Ps.
    3,766.2Funds Provided (Used) by Operating Activities
    
    
    872.2
    
    
    
    1,464.8
    
    
    
    852.0- Funds Provided by the Sale Of or Proceeds From Government Securities Trading
    
    
    327.8
    
    
    
    1,120.9
    
    
    
    802.6- CER Adjustment
    
    
    15.0
    
    
    
    6.5
    
    
    
    (113.2
    )- Other
    
    
    529.4
    
    
    
    337.4
    
    
    
    162.6Funds Provided (Used) by Investing Activities
    
    
    (2,813.1
    )
    
    
    (1,526.0
    )
    
    
    1,093.6- Net (Increase)/Decrease in Loans
    
    
    (4,539.4
    )
    
    
    (1,185.6
    )
    
    
    1,501.3Loans to the Private Sector
    
    
    (4,435.0
    )
    
    
    (1,193.6
    )
    
    
    1,444.6Loans to the Public Sector
    
    
    (104.4
    )
    
    
    8.0
    
    
    
    56.7- Funds Provided by the Sale Of or Proceeds From Government Securities Available
for Sale
    
    
    2,376.5
    
    
    
    
    
    
    
    36.5- Other
    
    
    (650.2
    )
    
    
    (340.4
    )
    
    
    (444.2
    )Funds Provided (Used) by Financing Activities
    
    
    3,844.7
    
    
    
    517.9
    
    
    
    (1.065.6
    )- Net Increase/(Decrease) in Deposits
    
    
    4,180.9
    
    
    
    1,838.7
    
    
    
    (57.0
    )- Funds Provided/(Used) by Repurchases
    
    
    211.0
    
    
    
    (409.3
    )
    
    
    (376.6
    )- Funds Raised by the Regional Credit Card Companies
    
    
    460.3
    
    
    
    197.7
    
    
    
    269.5- Payments on Long-term Debt
    
    
    (1,452.8
    )
    
    
    (778.6
    )
    
    
    (743.5
    )- Other
    
    
    445.3
    
    
    
    (330.6
    )
    
    
    (158.0
    )-Effect of Exchange Rate on Cash and Cash Equivalents
    
    
    111.1
    
    
    
    176.7
    
    
    
    149.2Funds at the End of the Fiscal Year
    
    Ps.
    7,443.5
    
    
    Ps.
    5,428.7
    
    
    Ps.
    4,795.4
 (1)
    
    Cash and cash equivalents.   -144-




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##### Table of Contents



Cash Flows from Operating Activities
     -145-




---



##### Table of Contents



Cash Flows from Investing Activities
  amparo
claims
 amparo claims
 Cash Flows from Financing Activities
       -146-




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##### Table of Contents



Banco Galicias Liquidity Management
 Banco Galicia Consolidated Liquidity Gaps
   As of December 31, 2010(1)Less thanone Year
    
    
    1 - 5 Years
    
    
    5 - 10 Years
    
    
    Over 10 Years
    
    
    Total(in millions of Pesos, except ratios)AssetsCash and Due from Banks
    
    
    1,730.1
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    1,730.1Argentine Central Bank  Escrow Accounts
    
    
    4,283.9
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    4,283.9Overnight Placements
    
    
    215.3
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    215.3Loans  Public Sector
    
    
    2.0
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    2.0Loans  Private Sector
    
    
    17,444.3
    
    
    
    3,256.4
    
    
    
    163.0
    
    
    
    13.0
    
    
    
    20,876.7Government Securities
    
    
    2,043.6
    
    
    
    643.2
    
    
    
    
    
    
    
    
    
    
    
    2,686.8Negotiable Obligations and Corporate Securities
    
    
    45.8
    
    
    
    23.6
    
    
    
    7.1
    
    
    
    
    
    
    
    76.5Financial Trusts
    
    
    411.4
    
    
    
    308.4
    
    
    
    270.0
    
    
    
    
    
    
    
    989.8Special Fund Former Almafuerte Bank
    
    
    0.0
    
    
    
    164.7
    
    
    
    
    
    
    
    
    
    
    
    164.7Other Financing
    
    
    9.5
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    9.5Assets under Financial Lease
    
    
    162.4
    
    
    
    263.6
    
    
    
    43.1
    
    
    
    
    
    
    
    469.1Other
    
    
    359.4
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    359.4Total Assets
    
    
    26,707.7
    
    
    
    4,659.9
    
    
    
    483.2
    
    
    
    13.0
    
    
    
    31,863.8LiabilitiesSavings Accounts
    
    
    6,190.0
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    6,190.0Demand Deposits
    
    
    6,018.8
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    6,018.8Time Deposits
    
    
    9,896.9
    
    
    
    35.1
    
    
    
    0.1
    
    
    
    0.1
    
    
    
    9,932.2Negotiable Obligations
    
    
    554.4
    
    
    
    1,201.0
    
    
    
    
    
    
    
    
    
    
    
    1,755.4International Banks and Credit Agencies
    
    
    476.6
    
    
    
    226.5
    
    
    
    
    
    
    
    
    
    
    
    703.1Domestic Banks
    
    
    357.2
    
    
    
    342.4
    
    
    
    12.8
    
    
    
    0.1
    
    
    
    712.5Other Liabilities (1)
    
    
    4,255.2
    
    
    
    397.6
    
    
    
    
    
    
    
    
    
    
    
    4,652.8Total Liabilities
    
    
    27,749.1
    
    
    
    2,202.6
    
    
    
    12.9
    
    
    
    0.2
    
    
    
    29,964.8Asset / Liability Gap
    
    
    (1,041.4
    )
    
    
    2,457.3
    
    
    
    470.3
    
    
    
    12.8
    
    
    
    1,899.0Cumulative Gap
    
    
    (1,041.4
    )
    
    
    1,415.9
    
    
    
    1,886.2
    
    
    
    1,899.0
    
    
    
    1,899.0Ratio of Cumulative Gap to Cumulative Liabilities
    
    
    (3.8
    )%
    
    
    4.7
    %
    
    
    6.3
    %
    
    
    6.3
    %Ratio of Cumulative Gap to Total Liabilities
    
    
    (3.5
    )%
    
    
    4.7
    %
    
    
    6.3
    %
    
    
    6.3
    %
 Principal plus CER adjustment. Does not include interest.
 (1)
    
    Includes, mainly, debt with retailers due to credit card operations, liabilities in connection with repurchase transactions, debt
with domestic credit agencies and collections for third parties. The Less than One Year bucket also includes Ps.6.7 million
corresponding to Banco Galicias foreign debt not tendered by its holders in the exchange offered to restructure such foreign debt,
which was completed in May 2004.  -147-




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##### Table of Contents



Banco Galicia (Unconsolidated) Liquidity Management
   As of December 31, 2010(in millions of Pesos)Legal Requirement
    
    Ps.
    4,861.1Management Liquidity
    
    
    2,647.5Total Liquidity(1)
    
    Ps.
    7,508.6
 (1)
    
    Excludes cash and due from banks of consolidated companies.      -148-




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##### Table of Contents



Capital
  As of December 31,2010
    
    
    2009
    
    
    2008(in millions of Pesos, except ratios, multiples and percentages)Shareholders Equity
    
    Ps.
    2,469.5
    
    
    Ps.
    2,052.5
    
    
    Ps.
    1,845.7Shareholders Equity as a Percentage of Total Assets
    
    
    6.92
    %
    
    
    7.44
    %
    
    
    7.46
    %Total Liabilities as a Multiple of Total Shareholders Equity
    
    
    13.46
    x
    
    
    12.45
    x
    
    
    12.40
    xTangible Shareholders Equity (1) as a Percentage of Total Assets
    
    
    5.64
    %
    
    
    5.36
    %
    
    
    5.17
    %
 (1)
    
    Tangible shareholders equity represents shareholders equity minus intangible assets.  
 Capital Expenditures
   
 Item 6.
    
    Directors, Senior Management and Employees
 
 Our Board of Directors
  Principal
    
    Member
    
    CurrentName
    
    Position
    
    Date of Birth
    
    Occupation
    
    Since
    
    Term EndsEduardo J. Escasany
    
    Chairman
    
    June 30, 1950
    
    Businessman
    
    April 2005
    
    December 2012Pablo Gutiérrez
    
    Vice chairman
    
    December 9, 1959
    
    Banker
    
    April 2003
    
    December 2012Abel Ayerza
    
    Director
    
    May 27, 1939
    
    Businessman
    
    September 1999
    
    December 2011Federico Braun
    
    Director
    
    February 4, 1950
    
    Businessman
    
    September 1999
    
    December 2013Enrique Martin
    
    Director
    
    October 19, 1945
    
    Businessman
    
    April 2006
    
    December 2011Luis O. Oddone
    
    Director
    
    May 11, 1938
    
    Businessman
    
    April 2005
    
    December 2012Silvestre Vila Moret
    
    Director
    
    April 26, 1971
    
    Businessman
    
    June 2002
    
    December 2013Eduardo J. Zimmermann
    
    Director
    
    January 3, 1931
    
    Businessman
    
    April 2000
    
    December 2011Guido C. Forcieri
    
    Director
    
    May 15, 1980
    
    Lawyer
    
    April 2011
    
    December 2013María Ofelia Hordeñana 
de Escasany
    
    Alternate Director
    
    December 30, 1920
    
    Businesswoman
    
    April 2000
    
    December 2013Sergio Grinenco
    
    Alternate Director
    
    May 26, 1948
    
    Banker
    
    April 2003
    
    December 2013Alejandro Rojas Lagarde
    
    Alternate Director
    
    July 17, 1937
    
    Lawyer
    
    April 2000
    
    December 2011Luis S. Monsegur
    
    Alternate Director
    
    August 15, 1936
    
    Accountant
    
    April 2000
    
    December 2013
  -149-




---



##### Table of Contents



Eduardo Escasany:
 Pablo Gutiérrez:
 Abel Ayerza:
 Federico Braun:
 Enrique Martin:
  -150-




---



##### Table of Contents



Luis Oddone:
 Silvestre Vila Moret
 Eduardo Zimmermann:
 César Forcieri
 María Ofelia Hordeñana de Escasany:
 Sergio Grinenco
 Alejandro María Rojas Lagarde:
 Luis Sila Monsegur:
  -151-




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##### Table of Contents



Our Audit Committee
   
 Our Supervisory Committee
   Principal
    
    CurrentName
    
    Position
    
    Occupation
    
    Term EndsNorberto Corizzo
    
    Syndic
    
    Accountant
    
    December 2011Luis A. Díaz
    
    Syndic
    
    Accountant
    
    December 2011Enrique M. Garda Olaciregui
    
    Syndic
    
    Lawyer
    
    December 2011Miguel Armando
    
    Alternate Syndic
    
    Lawyer
    
    December 2011Fernando Noetinger
    
    Alternate Syndic
    
    Lawyer
    
    December 2011Horacio Tedín
    
    Alternate Syndic
    
    Lawyer
    
    December 2011
  -152-




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##### Table of Contents



Norberto Corizzo:
 Luis Díaz:
 Enrique M. Garda Olaciregui:
 Miguel Armando
 Fernando Noetinger
 Horacio Tedín
 
 Compensation of Our Directors
   -153-




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##### Table of Contents



Management of Grupo Financiero Galicia
       -154-




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##### Table of Contents



Board of Directors of Banco Galicia
  Date of
    
    Principal
    
    Member
    
    CurrentName
    
    Position
    
    Birth
    
    Occupation
    
    Since
    
    Term EndsAntonio R. Garcés
    
    Chairman of the
Board
    
    May 30, 1942
    
    Banker
    
    September 2001
    
    December 2011Sergio Grinenco
    
    Vice chairman
    
    May 26, 1948
    
    Banker
    
    April 2003
    
    December 2011Guillermo J. Pando
    
    Secretary Director
    
    October 23, 1948
    
    Banker
    
    April 2003
    
    December 2013Pablo Gutierrez
    
    Director
    
    December 9, 1959
    
    Banker
    
    April 2005
    
    December 2013Luis M. Ribaya
    
    Director
    
    July 17, 1952
    
    Banker
    
    September 2001
    
    December 2013Pablo M. Garat (1)
    
    Director
    
    January 12, 1953
    
    Lawyer
    
    April 2004
    
    December 2012Ignacio A. González García(1)
    
    Director
    
    April 23, 1944
    
    Accountant
    
    April 2010
    
    December 2012Enrique García Pinto
    
    Alternate Director
    
    August 10, 1948
    
    
    
    April 2009
    
    December 2011Raúl H. Seoane
    
    Alternate Director
    
    July 18, 1953
    
    Banker
    
    April 2005
    
    December 2011Juan C. Fossatti (2)
    
    Alternate Director
    
    September 11, 1955
    
    Lawyer
    
    June 2002
    
    December 2012Julio P. Naveyra (2)
    
    Alternate Director
    
    March 24, 1941
    
    Accountant
    
    April 2004
    
    December 2012Osvaldo H. Canova (2)
    
    Alternate Director
    
    December 8, 1934
    
    Accountant
    
    April 2004
    
    December 2012
 (1)
    
    In accordance with the rules of the CNV, and pursuant to the classifications adopted by the CNV, Messrs. Garat and González García are
independent and were elected at the ordinary shareholders meeting held on April 14, 2010. The board of directors meeting held on April 15, 2010
elected them as members of the Audit Committee. Messrs. Garat and González García are also independent directors in accordance with the Nasdaq
rules.(2)
    
    In accordance with the rules of the CNV, and pursuant to the classifications adopted by the CNV, Messrs. Fossatti, Canova and Naveyra are
independent alternate directors. They would replace the independent directors in case of vacancy. They are also independent directors in
accordance with the Nasdaq rules.  Antonio Roberto Garcés
 Sergio Grinenco
 Guillermo Juan Pando
 Pablo Gutierrez
 Luis María Ribaya
 Pablo María Garat
  -155-




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##### Table of Contents



Ignacio Abel González García:
 Raúl Héctor Seoane
 Enrique García Pinto:
 Juan Carlos Fossatti
 Julio Pedro Naveyra:
 Osvaldo Héctor Canova:
 
 Functions of the Board of Directors of Banco Galicia
   Risk Management Committee:
  -156-




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##### Table of Contents



Credit Committee:
 Information Technology Committee:
 Audit Committee:
 Committee for the Control and Prevention of Money Laundering and Funding of Terrorist
Activities:
  Committee for Information Integrity:
 Human Resources Committee:
  -157-




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Asset and Liabilities Committee (ALCO):
 Customer Assistance Committee:
 Planning and Management Control Committee:
 Segments and Business Management Committee:
 Crisis Committee:
  
 Banco Galicias Executive Officers
  Daniel Antonio Llambías
  -158-




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##### Table of Contents



Division
    
    ManagerRetail Banking
    
    Juan SarquisWholesale Banking
    
    Gastón BourdieuFinancial
    
    Pablo María LeonRisk Management
    
    Juan Carlos LAfflittoCredit
    
    Marcelo PonciniComprehensive Corporate Services
    
    Miguel Ángel PeñaOrganizational Development and Human Resources
    
    Rafael Pablo BergésPlanning and Financial Control
    
    Raúl Héctor Seoane
 Retail Banking Division
 Wholesale Banking Division
 Financial Division
 Risk Management Division:
 Credit Division
 Comprehensive Corporate Services Division
 Organizational Development and Human Resources Division
  -159-




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##### Table of Contents



Planning and Financial Control Division
  Department
    
    ManagerLegal Advisory Services Department
    
    María Elena CasasnovasResearch Department
    
    Nicolás Dujovne
 Legal Advisory Services Department
 Research Department
  Department
    
    ManagerInternal Audit
    
    Omar SeveriniInstitutional Affairs and Press Department
    
    Diego Francisco VidelaAnti-money Laundering Unit
    
    Claudia Estecho
 Internal Audit Department
 Institutional Affairs and Press Department
 Anti-money Laundering Unit
  Daniel Antonio Llambías
 Juan H. Sarquís:
  -160-




---



##### Table of Contents



Gastón Bourdieu
 Pablo M. Leon
 Juan Carlos LAfflitto
 Marcelo Poncini
 Miguel Angel Peña: Asociación Argentina de Usuarios de la Informática y las Comunicaciones
 Rafael Pablo Bergés:
 Raúl Héctor Seoane .
 María Elena Casasnovas
 Nicolás Dujovne
 Omar Severini:
 Diego Francisco Videla:
 Claudia Raquel Estecho:
  -161-




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##### Table of Contents



Banco Galicias Supervisory Committee
   Year of
    
    
    
    
    PrincipalName
    
    Appointment
    
    
    Position
    
    Occupation
    
    Current Term EndsEnrique M. Garda Olaciregui
    

    2011
    
    
    Syndic
    
    Lawyer
    
    December 31, 2011Norberto D. Corizzo
    

    2011
    
    
    Syndic
    
    Accountant
    
    December 31, 2011Luis A. Díaz
    

    2011
    
    
    Syndic
    
    Accountant
    
    December 31, 2011Fernando Noetinger
    

    2011
    
    
    Alternate Syndic
    
    Lawyer
    
    December 31, 2011Miguel N. Armando
    

    2011
    
    
    Alternate Syndic
    
    Lawyer
    
    December 31, 2011Ricardo A. Bertoglio
    

    2011
    
    
    Alternate Syndic
    
    Accountant
    
    December 31, 2011
  Ricardo Adolfo Bertoglio
 
 Compensation of Banco Galicias Directors and Officers
     -162-




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##### Table of Contents



Employees
  As of December 31,2010
    
    
    2009
    
    
    2008Grupo Financiero Galicia S.A.
    
    
    13
    
    
    
    10
    
    
    
    9Banco de Galicia y Buenos Aires S.A.
    
    
    5,185
    
    
    
    5,028
    
    
    
    5,324Branches
    
    
    2,685
    
    
    
    2,636
    
    
    
    2,888Head Office
    
    
    2,500
    
    
    
    2,392
    
    
    
    2,436Galicia Uruguay
    
    
    7
    
    
    
    8
    
    
    
    10Regional Credit-Card Companies
    
    
    4,699
    
    
    
    3,936
    
    
    
    3,898CFA
    
    
    1,160
    
    
    
    
    
    
    
    Sudamericana Consolidated
    
    
    126
    
    
    
    116
    
    
    
    105Other Subsidiaries
    
    
    48
    
    
    
    44
    
    
    
    62Total
    
    
    11,238
    
    
    
    9.142
    
    
    
    9,408
    
 Nasdaq Corporate Governance Standards
  (i)
    
    Rule 5250 (d)  Distribution of Annual and Interim Reports. In lieu of the requirements
of Rule 5250 (d), we follow Argentine law, which requires that companies make public a
Spanish language annual report, including annual audited consolidated financial statements,
by filing such annual report with the CNV and the BASE, within 70 calendar days of the end
of the companys fiscal year. Interim reports must be filed with the CNV and the BASE
within 42 calendar days of the end of each fiscal quarter. The BASE publishes the annual
reports and interim reports in the BASE bulletin and makes the bulletin available for
inspection at its offices. In addition, our shareholders can receive copies of our annual
reports and any interim reports upon such shareholders request. English language
translations of our annual reports and interim reports are furnished to the SEC. We also
post the English language translation of our annual reports and quarterly press releases on
our website. Furthermore, under the terms of the Second Amended and Restated Deposit
Agreement, dated as of June 22, 2000, among us, The Bank of New York, as depositary, and
owners of ADSs issued thereunder, we are required to furnish The Bank of New York with,
among other things, English language translations of our annual reports and each of our
  -163-




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##### Table of Contents



quarterly press releases. Annual reports and quarterly press releases are available for inspection
by ADRs holders at the offices of The Bank of New York located at, 101 Barclay Street, New
York, New York. Finally, Argentine law requires that 20 calendar days before the date of a
shareholders meeting, the board of directors must provide to the shareholders, at the
companys executive office or through electronic means, all information relevant to the
shareholders meeting, including copies of any documents to be considered by the
shareholders (which includes the annual report), as well as proposals of the companys
board of directors.
 (ii)
    
    Rule 5605 (b) (1)  Majority of Independent Directors. In lieu of the requirements of
Rule 5605 (b) (1), we follow Argentine law, which does not require that a majority of the
board of directors be comprised of independent directors. Argentine law instead requires
that public companies in Argentina such as us must have a sufficient number of independent
directors to be able to form an audit committee of at least three members, the majority of
which must be independent pursuant to the criteria established by the CNV. In addition,
because we are a controlled company as defined in Rule 5615 (c) (1), we are relying on
the exemption provided thereby for purposes of complying with Rule 5615 (c) (2).
 (iii)
    
    Rule 5605 (b) (2)  Executive Sessions of Independent Directors. In lieu of the
requirements of Rule 5605 (b) (2), we follow Argentine law which does not require
independent directors to hold regularly scheduled meetings at which only such independent
directors are present (i.e., executive sessions). Our Board of Directors as a whole is
responsible for monitoring our affairs. In addition, under Argentine law, the board of
directors may approve the delegation of specific responsibilities to designated directors
or non-director managers of the company. Also, it is mandatory for public companies to form
a supervisory committee (composed of syndics), which is responsible for monitoring the
legality of the companys actions under Argentine law and the conformity thereof with its
by-laws. Finally, our audit committee has regularly scheduled meetings and, as such, such
meetings will serve a substantially similar purpose as executive sessions.
 (iv)
    
    Rule 5605 (d)  Compensation of Officers. In lieu of the requirements of Rule 5605
(d), we follow Argentine law, which does not require companies to form a compensation
committee comprised solely of independent directors. It also is not required in Argentine
law that the compensation of the chief executive officer and all other executive officers
be determined by either a majority of the independent directors or a compensation committee
comprised solely of independent directors. Under Argentine law, the board of directors is
the corporate body responsible for determining the compensation of the chief executive
officer and all other executive officers, so long as they are not directors. In addition,
under Argentine law, the audit committee shall give its opinion about the reasonableness of
managements proposals on fees and option plans for directors or managers of the company.
Finally, because we are a controlled company as defined in Rule 5615 (c) (1), we are
relying on the exemption provided thereby for purposes of complying with Rule 5615 (c) (2).
 (v)
    
    Rule 5605 (e) (1)  Nomination of Directors. In lieu of the requirements of Rule 5605
(e) (1), we follow Argentine law which requires that directors be nominated directly by the
shareholders at the shareholders meeting and that they be selected and recommended by the
shareholders themselves. Under Argentine law, it is the responsibility of the ordinary
shareholders meeting to appoint and remove directors and to set their compensation. In
addition, because we are a controlled company as defined in Rule 5615 (c) (1), we are
relying on the exemption provided thereby for purposes of complying with Rule 5615 (c) (2).
 (vi)
    
    Rule 5605 (c) (1)  Audit Committee Charter. In lieu of the requirements of Rule 5605
(c) (1), we follow Argentine law, which requires that audit committees have a charter but
does not require that companies certify as to the adoption of the charter nor does it
require an annual review and assessment thereof. Argentine law instead requires that
companies prepare a proposed plan or course of action with respect to those matters, which
are the responsibility of the companys audit committee. Such plan or course of action
could, at the discretion of our audit committee, include a review and assessment of the
audit committee charter.
  -164-




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##### Table of Contents



(vii)
    
    Rule 5605 (c) (2)  Audit Committee Composition. Argentine law does not require, and
it is equally not customary business practice in Argentina, that companies have an audit
committee comprised solely of
independent directors. Argentine law instead requires that companies establish an audit
committee with at least three members comprised of a majority of independent directors as
defined by Argentine law. Nonetheless, although not required by Argentine law, we have a
three member audit committee comprised of entirely independent directors, as independence
is defined in Rule 10 A-3 (b) (1), one of which the Board of Directors has determined to
be an audit committee financial expert. In addition, we have a supervisory committee
(comisión fiscalizadora) composed of three syndics, which are in charge of monitoring
the legality, under Argentine law, of the actions of our board of directors and the
conformity of such actions with our by-laws.
 (viii)
    
    Rule 5620 (c)  Quorum. In lieu of the requirements of Rule 5620 (c), we follow
Argentine law and our bylaws, which distinguish between ordinary meetings and extraordinary
meetings and require, in connection with ordinary meetings, that a quorum consist of a
majority of stock entitled to vote. If no quorum is present at the first meeting, a second
meeting may be called at which the shareholders present, whatever their number, constitute
a quorum and resolutions may be adopted by an absolute majority of the votes present.
Argentine law and our bylaws require, in connection with extraordinary meetings, that a
quorum consist of 60% of the stock entitled to vote. However, if such quorum is not present
at the first meeting, our bylaws provide that a second meeting may be called which may be
held with the number of shareholders present. In both ordinary and extraordinary meetings,
decisions are adopted by an absolute majority of votes present at the meeting, except for
certain fundamental matters (such as mergers and spin-offs (when we are not the surviving
entity and the surviving entity is not listed on any stock exchange), anticipated
liquidation, a change in our domicile to outside of Argentina, total or partial
recapitalization of our statutory capital following a loss, any transformation in our
corporate legal form or a substantial change in our corporate purpose) which require an
approval by vote of the majority of all the stock entitled to vote (all stock being
entitled to only one vote).
 (ix)
    
    Rule 5620 (b)  Solicitation of Proxies. In lieu of the requirements of Rule 5620 (b),
we follow Argentine law which requires that notices of shareholders meetings be published,
for five consecutive days, in the Official Gazette and in a widely circulated newspaper in
Argentina no earlier than 45 calendar days prior to the meeting and at least 20 calendar
days prior to such meeting. In order to attend a meeting and be listed on the meeting
registry, shareholders are required to submit evidence of their book-entry share account
held at Caja de Valores S.A. (Caja de Valores) up to three business days prior to the
scheduled meeting date. If entitled to attend the meeting, a shareholder may be represented
by proxy (properly executed and delivered with a certified signature) granted to any other
person, with the exception of a director, syndic, member of the surveillance committee
(consejo de vigilancia), manager or employee of the issuer, which are prohibited by
Argentine law from acting as proxies. In addition, our ADRs holders receive, prior to the
shareholders meeting, a notice listing the matters on the agenda, a copy of the annual
report and a voting card.
 (x)
    
    Rule 5630 (a)  Conflicts of Interest. In lieu of the requirements of Rule 5630 (a),
we follow Argentine law which requires that related party transactions be approved by the
audit committee when the transaction exceeds one percent (1%) of the corporations net
worth, measured pursuant to the last audited balance sheet, so long as the relevant
transaction exceeds the equivalent of three hundred thousand Argentine Pesos (Ps.300,000).
Directors can contract with the corporation only on terms consistent with prevailing market
terms. If the contract is not in accordance with prevailing market terms, such transaction
must be pre-approved by the board of directors (excluding the interested director). In
addition, under Argentine law, a shareholder is required to abstain from voting on a
business transaction in which its interests may be in conflict with the interests of the
company. In the event such shareholder votes on such business transaction and such business
transaction would not have been approved without such shareholders vote, such shareholder
may be liable to the company for damages and the resolution may be declared void.
   -165-




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Share Ownership
  
 Item 7.
    
    Major Shareholders and Related Party Transactions
 
 Major Shareholders
    Class A Shares
 Name
    
    Class A Shares
    
    % of Class A Shares
    
    
    % of Total VotesEBA Holding S.A.
    
    281,221,650 class A shares
    
    
    100
    
    
    
    59.4
 Class B Shares
 Name
    
    Class B Shares
    
    % of Class B Shares
    
    
    % of Total VotesThe Bank of New York(1)
    
    397,228,430 class B shares
    
    
    41.4
    
    
    
    16.8ANSES (2)
    
    253,745,743 class B shares
    
    
    26.4
    
    
    
    10.7EBA Holding Shareholders(3)
    
    134,284,871 class B shares
    
    
    14.0
    
    
    
    5.7Carmignac Gestión(4)
    
    86,020,000 class B shares
    
    
    9.0
    
    
    
    3.6
 (1)
    
    Pursuant to the requirements of Argentine law, all class B shares represented by ADSs are owned of record by The Bank of New York, as
Depositary. The address for the Bank of New York is 101 Barclay Street, New York 10286, and the country of organization is the United States.(2)
    
    ANSES holding is obtained through information supplied by Caja de Valores and information gathered from the ANSES. Said holding includes
46,521,340 shares in ADSs.(3)
    
    No member holds more than 2.0% of the capital stock. Said holding includes 37,036,150 shares in the form of ADSs.(4)
    
    Information is based on available public information dated March 31, 2011. The address for Carmignac Gestion S.A. is 34 place Vendome 75001,
Paris, France.  Name
    
    Shares
    
    % of Shares
    
    % of Total VotesThe Bank of New York
    
    397,228,430 class B shares
    
    
    32.0
    
    
    
    16.8EBA Holding S.A.
    
    281,221,650 class A shares
    
    
    22.7
    
    
    
    59.4ANSES
    
    253,745,743 class B shares
    
    
    20.4
    
    
    
    10.7EBA Holding Shareholders
    
    134,284,871 class B shares
    
    
    10.8
    
    
    
    5.7Carmignac Gestión (1)
    
    86,020,000 class B shares
    
    
    6.9
    
    
    
    3.6
 (1)
    
    Information is based on available public information dated March 31, 2011.  -166-




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Related Party Transactions
   -167-




---



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Outstanding amountEntity
    
    Granted in
    
    
    Rate
    
    
    Original Amount
    
    
    December 31, 2010
    
    
    December 31, 2009%
    
    
    
    
    
    
    (in millions of Pesos)Net Investment S.A.
    
    Nov/Apr 2009
    
    
    
    0.0
    
    
    Ps.
    0.20
    
    
    Ps.
    0
    
    
    Ps.
    0.20GV Mandataria de Valores S.A.
    
    Nov/Sep 2009
    
    
    
    0.0
    
    
    Ps.
    0.57
    
    
    Ps.
    0
    
    
    Ps.
    0.76
      April 30, 2011
    
    
    December 31, 2010
    
    
    December 31, 2009
    
    
    December 31, 2008In millions of Pesos, except as notedAggregate Total Financial Exposure
    
    Ps.
    111
    
    
    Ps.
    126.1
    
    
    Ps.
    76.0
    
    
    Ps.
    74.9Number of Recipient Related Parties
    
    
    231
    
    
    
    230
    
    
    
    219
    
    
    
    221Individuals
    
    
    177
    
    
    
    175
    
    
    
    172
    
    
    
    174Companies
    
    
    54
    
    
    
    55
    
    
    
    47
    
    
    
    47Average Total Financial Exposure
    
    Ps.
    0.5
    
    
    Ps.
    0.5
    
    
    Ps.
    0.3
    
    
    Ps.
    0.3Single Largest Exposure
    
    Ps.
    25.1
    
    
    Ps.
    39
    
    
    Ps.
    18.9
    
    
    Ps.
    30.5
    -168-




---



##### Table of Contents



Item 8.
    
    Financial Information
  
 Legal Proceedings
  Banco Galicia
  amparo claims
   Cámara Argentina de
Comercio
  -169-




---



##### Table of Contents



Regional Credit Card Companies
  Compañía Financiera Argentina
   
 Dividend Policy and Dividends
 Dividend Policy
     -170-




---



##### Table of Contents



(amparos)
  
    
    Calculation of the distributable profits subtracting the net difference between
the book value and the market price of the government debt.
 
    
    Compliance with minimum capital requirements plus 30% after the payment of the
dividend.
 
    
    Compliance with minimum capital cash reserves after the payment of the dividend.
  Dividends
  Banco Galicia
    -171-




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##### Table of Contents



Grupo Financiero Galicia
   
 Significant Changes
 Grupo Financiero Galicia
   Banco Galicia
    Tarjetas Regionales
   -172-




---



##### Table of Contents



CFA
     
 Item 9.
    
    The Offer and Listing
 
 Shares and ADSs
     -173-




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##### Table of Contents



Grupo Financiero Galicia  Class B Shares Buenos Aires Stock Exchange (in Pesos)
 Average Daily VolumeHigh
    
    
    Low
    
    
    (in thousands of Class B shares)Calendar Year2006
    
    
    2.86
    
    
    
    1.72
    
    
    
    2,045.32007
    
    
    3.37
    
    
    
    2.23
    
    
    
    1,924.82008
    
    
    2.36
    
    
    
    0.57
    
    
    
    3,549.42009
    
    
    2.30
    
    
    
    0.61
    
    
    
    2,471.52010
    
    
    6.69
    
    
    
    1.84
    
    
    
    2,341.3Two Most Recent Fiscal Years2009First Quarter
    
    
    0.88
    
    
    
    0.61
    
    
    
    1,497.9Second Quarter
    
    
    1.28
    
    
    
    0.70
    
    
    
    2,669.4Third Quarter
    
    
    1.81
    
    
    
    1.26
    
    
    
    1,747.7Fourth Quarter
    
    
    2.30
    
    
    
    1.76
    
    
    
    1,742.82010First Quarter
    
    
    2.41
    
    
    
    1.84
    
    
    
    1,315.5Second Quarter
    
    
    2.53
    
    
    
    2.02
    
    
    
    1,957.0Third Quarter
    
    
    4.01
    
    
    
    2.29
    
    
    
    2,988.9Fourth Quarter
    
    
    6.69
    
    
    
    3.91
    
    
    
    3,094.72011First Quarter
    
    
    6.69
    
    
    
    5.23
    
    
    
    1,299.7Second Quarter (through May 31, 2011)
    
    
    5.85
    
    
    
    5.15
    
    
    
    1,418.4Most Recent Six MonthsDecember 2010
    
    
    6.69
    
    
    
    5.71
    
    
    
    2,117.0January 2011
    
    
    6.69
    
    
    
    6.10
    
    
    
    1,057.6February 2011
    
    
    6.62
    
    
    
    5.91
    
    
    
    1,467.9March 2011
    
    
    5.98
    
    
    
    5.23
    
    
    
    1,390.3April 2011
    
    
    5.85
    
    
    
    5.43
    
    
    
    1,574.4May 2011
    
    
    5.84
    
    
    
    5.15
    
    
    
    1,277.2
  Grupo Financiero Galicia  ADSs  Nasdaq Capital Market (in US$)
 Average Daily VolumeHigh
    
    
    Low
    
    
    (in thousands of ADRs)Calendar Year2006
    
    
    9.56
    
    
    
    5.61
    
    
    
    190.22007
    
    
    11.12
    
    
    
    6.98
    
    
    
    273.12008
    
    
    7.60
    
    
    
    1.45
    
    
    
    251.62009
    
    
    6.10
    
    
    
    1.56
    
    
    
    160,02010
    
    
    16.77
    
    
    
    4.72
    
    
    
    447.1Two Most Recent Fiscal Years2009First Quarter
    
    
    2.42
    
    
    
    1.56
    
    
    
    100.9Second Quarter
    
    
    3.28
    
    
    
    1.80
    
    
    
    191.1Third Quarter
    
    
    4.71
    
    
    
    3.10
    
    
    
    163.0Fourth Quarter
    
    
    6.10
    
    
    
    4.55
    
    
    
    187.72010First Quarter
    
    
    6.20
    
    
    
    4.72
    
    
    
    113.6Second Quarter
    
    
    6.48
    
    
    
    5.12
    
    
    
    147.7Third Quarter
    
    
    10.15
    
    
    
    5.67
    
    
    
    658.8Fourth Quarter
    
    
    16.77
    
    
    
    9.86
    
    
    
    847.82011First Quarter
    
    
    16.52
    
    
    
    12.32
    
    
    
    376.8Second Quarter (through May 31, 2011)
    
    
    13.94
    
    
    
    11.12
    
    
    
    258.1Most Recent Six MonthsDecember 2010
    
    
    16.77
    
    
    
    14.27
    
    
    
    613.8January 2011
    
    
    16.52
    
    
    
    15.05
    
    
    
    424.7February 2011
    
    
    16.01
    
    
    
    13.83
    
    
    
    443.8March 2011
    
    
    14.38
    
    
    
    12.32
    
    
    
    279.9April 2011
    
    
    13.94
    
    
    
    12.72
    
    
    
    288.2May 2011
    
    
    13.53
    
    
    
    11.12
    
    
    
    229.5
  -174-




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##### Table of Contents



Banco Galicia  Class B Shares  Buenos Aires Stock Exchange (in Pesos)
 Average Daily Trading VolumeHigh
    
    
    Low
    
    
    (in thousand Class B shares)Calendar Year2006
    
    
    4.50
    
    
    
    3.04
    
    
    
    1.562007
    
    
    6.46
    
    
    
    4.25
    
    
    
    2.742008
    
    
    4.45
    
    
    
    2.15
    
    
    
    3.302009
    
    
    3.55
    
    
    
    2.10
    
    
    
    6.472010
    
    
    11.91
    
    
    
    3.12
    
    
    
    3.51Two Most Recent Fiscal Years2009First Quarter
    
    
    2.38
    
    
    
    2.17
    
    
    
    0.69Second Quarter
    
    
    2.30
    
    
    
    2.15
    
    
    
    4.03Third Quarter
    
    
    3.00
    
    
    
    2.10
    
    
    
    14.85Fourth Quarter
    
    
    3.55
    
    
    
    3.04
    
    
    
    6.062010First Quarter
    
    
    4.08
    
    
    
    3.12
    
    
    
    3.51Second Quarter
    
    
    4.05
    
    
    
    3.44
    
    
    
    1.67Third Quarter
    
    
    6.28
    
    
    
    3.79
    
    
    
    3.11Fourth Quarter
    
    
    11.91
    
    
    
    6.15
    
    
    
    5.762011First Quarter
    
    
    11.66
    
    
    
    9.06
    
    
    
    2.59Second Quarter (through May 31, 2011)
    
    
    11.90
    
    
    
    10.78
    
    
    
    2.62Most Recent Six MonthsDecember 2010
    
    
    10.83
    
    
    
    8.46
    
    
    
    3.45January 2011
    
    
    11.52
    
    
    
    9.06
    
    
    
    2.68February 2011
    
    
    11.66
    
    
    
    10.24
    
    
    
    2.57March 2011
    
    
    10.93
    
    
    
    10.14
    
    
    
    2.51April 2011
    
    
    11.71
    
    
    
    10.78
    
    
    
    2.43May 2011
    
    
    11.90
    
    
    
    10.80
    
    
    
    1.79
  
 Argentine Securities Market
   -175-




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##### Table of Contents



Sistema Integrado de Negociación Asistida
por Computación
   
 Market Regulations
      -176-




---



##### Table of Contents



Item 10.
    
    Additional Information
 
 Description of Our Bylaws
 General
    
 Outstanding Capital Stock
  As of December 31, 2010Shares
    
    Number of Shares
    
    
    % of Capital Stock
    
    
    % of Voting RightsClass A Shares
    
    
    281,221,650
    
    
    
    22.65
    
    
    
    59.42Class B Shares
    
    
    960,185,367
    
    
    
    77.35
    
    
    
    40.58Total
    
    
    1,241,407,017
    
    
    
    100.00
    
    
    
    100.00
  -177-




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##### Table of Contents



Registration and Transfer
   Voting Rights
  
    
    a merger or spin-off in which we are not the surviving corporation, unless the
acquirers shares are authorized to be publicly offered or listed on any stock exchange;
 
    
    a transformation in our legal corporate form;
 
    
    a fundamental change in our corporate purpose;
 
    
    a change of our domicile to outside Argentina;
 
    
    a voluntary termination of our public offering or listing authorization;
 
    
    our continuation following a delisting or a mandatory cancellation of our public
offering or listing authorization;
 
    
    a total or partial recapitalization of our statutory capital following a loss; or
 
    
    the appointment of syndics.
  
    
    EBA Holding sells 100% of its class A shares;
 
    
    EBA Holding sells a portion of our class A shares to a third person who, when
aggregating all our class A shares with our class B shares owned by such person, if any,
obtains 50% plus one vote of our total votes; or
 
    
    the current shareholders of EBA Holding sell shares of EBA Holding that will allow the
buyer to exercise more than 50% of the voting power of EBA Holding at any general
shareholders meeting of EBA Holding shareholders, except for transfers to other current
shareholders of EBA Holding or to their heirs or their legal successors or to entities
owned by any of them.
 Limited Liability of Shareholders
  Directors
   -178-




---



##### Table of Contents



Appointment of Directors and Syndics by Cumulative Voting
  Compensation of Directors
     -179-




---



##### Table of Contents



Syndics
  Shareholders Meetings
  
    
    approval of the financial statements and general performance of the management for the
preceding fiscal year;
 
    
    appointment and remuneration of directors and members of the supervisory committee;
 
    
    allocation of profits; and
 
    
    any other matter the board of directors decides to submit to the shareholders meeting
concerning the companys business administration. Matters which may be discussed at these
or other ordinary meetings include resolutions regarding the responsibility of directors
and members of the supervisory committee, as well as capital increases and the issuance of
negotiable obligations.
        -180-




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##### Table of Contents



Dividends
       Capital Increases and Reductions
   -181-




---



##### Table of Contents



Preemptive Rights
      Appraisal Rights
  
    
    a merger or spin-off in which we are not the surviving corporation, unless the
acquirers shares are authorized to be publicly offered or listed on any stock exchange,
 
    
    a transformation in our legal corporate form,
 
    
    a fundamental change in our corporate purpose,
 
    
    a change of our domicile to outside Argentina,
 
    
    a voluntary termination of our public offering or listing authorization,
 
    
    our continuation following a delisting or a mandatory cancellation of our public
offering or listing authorization, or
 
    
    a total or partial recapitalization of our statutory capital following a loss,
     -182-




---



##### Table of Contents



Preferred Stock
   Conflicts of Interest
  Redemption or Repurchase
 
  Liquidation
   -183-




---



##### Table of Contents



Other Provisions
  
 Exchange Controls
  
 Taxation
  Argentine Taxes
 Taxation of Dividends
    Taxation of Capital Gains
 
    -184-




---



##### Table of Contents



Procurador del Tesoro
 Transfer Taxes
  Tax on Minimum Notional Income
    Personal Assets Tax
  
   -185-




---



##### Table of Contents



Other Taxes
  Deposit and Withdrawal of Class B Shares in Exchange for ADSs
  United States Taxes
       -186-




---



##### Table of Contents



Each prospective purchaser should consult its own tax advisor with respect to the U.S.
Federal, state, local and foreign tax consequences of acquiring, owning or disposing of class B
shares or ADSs.
 Ownership of ADSs in General
  Taxation of Cash Dividends and Distribution of Stock
      -187-




---



##### Table of Contents



Taxation of Capital Gains
     Passive Foreign Investment Company Considerations
     -188-




---



##### Table of Contents



Backup Withholding and Information Reporting
     Medicare Tax on Investment Income
  THE ABOVE SUMMARIES ARE NOT INTENDED TO CONSTITUTE A COMPLETE ANALYSIS OF ALL TAX CONSEQUENCES
RELATING TO THE OWNERSHIP OF THE CLASS B SHARES OR ADSs. YOU SHOULD CONSULT AN INDEPENDENT TAX
ADVISOR CONCERNING THE TAX CONSEQUENCES OF YOUR PARTICULAR SITUATION.
 
 Material Contracts
    -189-




---



##### Table of Contents



Other Loans
   -190-




---



##### Table of Contents



Documents on Display
  
 Item 11.
    
    Quantitative and Qualitative Disclosures About Market Risk
 
 General
      -191-




---



##### Table of Contents



Interest Rate Risk
   Aimed at managing and limiting the sensitivity of Banco Galicias economic value and results
with respect to variations in the interest rate inherent to the structure of certain assets and
liabilities, the following caps have been determined:
 
    
    Limit on the net financial income for the first year.
 
    
    Limit on the net present value of assets and liabilities.
 Limit on the Net Financial Income for the First Year
    Net Portfolio
    
    Net Financial Income(1)(In millions of Pesos, except percentages)
    
    As of December 31, 2010
    
    
    As of December 31, 2009Change in Interest Rates in b.p.
    
    Variation
    
    
    % Change in the NFI
    
    
    Variation
    
    
    % Change in the NFI200
    
    
    (30.4
    )
    
    
    (0.92
    )%
    
    
    (47.3
    )
    
    
    (2.65
    )%150
    
    
    (22.9
    )
    
    
    (0.69
    )%
    
    
    (35.4
    )
    
    
    (1.98
    )%100
    
    
    (16.2
    )
    
    
    (0.49
    )%
    
    
    (23.5
    )
    
    
    (1.32
    )%50
    
    
    (7.8
    )
    
    
    (0.23
    )%
    
    
    (11.8
    )
    
    
    (0.66
    )%Static
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (50)
    
    
    8.4
    
    
    
    0.25
    %
    
    
    12.1
    
    
    
    0.68
    %(100)
    
    
    16.7
    
    
    
    0.50
    %
    
    
    24.8
    
    
    
    1.39
    %(150)
    
    
    25.0
    
    
    
    0.75
    %
    
    
    37.4
    
    
    
    2.10
    %(200)
    
    
    33.3
    
    
    
    1.00
    %
    
    
    50.1
    
    
    
    2.80
    %
  -192-




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##### Table of Contents



Net Trading Portfolio
    
    Net Financial Income(1)(In millions of Pesos, except percentages)
    
    As of December 31, 2010
    
    
    As of December 31, 2009Change in Interest Rates in b.p.
    
    Variation
    
    
    % Change in the NFI
    
    
    Variation
    
    
    % Change in the NFI200
    
    
    40.9
    
    
    
    1.23
    %
    
    
    32.5
    
    
    
    1.82
    %150
    
    
    30.7
    
    
    
    0.92
    %
    
    
    24.4
    
    
    
    1.37
    %100
    
    
    20.4
    
    
    
    0.61
    %
    
    
    16.3
    
    
    
    0.91
    %50
    
    
    10.2
    
    
    
    0.31
    %
    
    
    8.1
    
    
    
    0.45
    %Static
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (50)
    
    
    (10.3
    )
    
    
    (0.31
    )%
    
    
    (8.2
    )
    
    
    (0.46
    )%(100)
    
    
    (20.5
    )
    
    
    (0.62
    )%
    
    
    (16.3
    )
    
    
    (0.91
    )%(150)
    
    
    (30.7
    )
    
    
    (0.92
    )%
    
    
    (24.4
    )
    
    
    (1.37
    )%(200)
    
    
    (41.0
    )
    
    
    (1.23
    )%
    
    
    (32.6
    )
    
    
    (1.83
    )%
 Net Non Trading Portfolio
    
    Net Financial Income(1)(In millions of Pesos, except percentages)
    
    As of December 31, 2010
    
    
    As of December 31, 2009Change in Interest Rates in b.p.
    
    Variation
    
    
    % Change in the NFI
    
    
    Variation
    
    
    % Change in the NFI200
    
    
    (71.3
    )
    
    
    (2.15
    )%
    
    
    (79.8
    )
    
    
    (4.47
    )%150
    
    
    (53.6
    )
    
    
    (1.61
    )%
    
    
    (59.8
    )
    
    
    (3.35
    )%100
    
    
    (36.6
    )
    
    
    (1.10
    )%
    
    
    (39.8
    )
    
    
    (2.23
    )%50
    
    
    (18.0
    )
    
    
    (0.54
    )%
    
    
    (19.9
    )
    
    
    (1.11
    )%Static
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (50)
    
    
    18.7
    
    
    
    0.56
    %
    
    
    20.3
    
    
    
    1.14
    %(100)
    
    
    37.2
    
    
    
    1.12
    %
    
    
    41.1
    
    
    
    2.30
    %(150)
    
    
    55.7
    
    
    
    1.68
    %
    
    
    61.8
    
    
    
    3.46
    %(200)
    
    
    74.3
    
    
    
    2.23
    %
    
    
    82.7
    
    
    
    4.63
    %
 (1)
    
    Net interest of the first year. Net Present Value of Assets and Liabilities
      -193-




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##### Table of Contents



Net Portfolio
    
    Net Fair Value(In millions of Pesos, except percentages)
    
    As of December 31, 2010
    
    
    As of December 31, 2009Change in Interest Rates in b.p.
    
    Variation
    
    
    % Change in the RPC
    
    
    Variation
    
    
    % Change in the RPC200
    
    
    (103.6
    )
    
    
    (2.89
    )%
    
    
    (104.6
    )
    
    
    (3.80
    )%150
    
    
    (78.4
    )
    
    
    (2.18
    )%
    
    
    (80.1
    )
    
    
    (2.91
    )%100
    
    
    (52.7
    )
    
    
    (1.47
    )%
    
    
    (54.6
    )
    
    
    (1.98
    )%50
    
    
    (26.6
    )
    
    
    (0.74
    )%
    
    
    (27.9
    )
    
    
    (1.01
    )%Static
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (50)
    
    
    27.0
    
    
    
    0.75
    %
    
    
    29.2
    
    
    
    1.06
    %(100)
    
    
    54.5
    
    
    
    1.52
    %
    
    
    59.7
    
    
    
    2.17
    %(150)
    
    
    82.4
    
    
    
    2.30
    %
    
    
    91.7
    
    
    
    3.33
    %(200)
    
    
    110.8
    
    
    
    3.09
    %
    
    
    125.3
    
    
    
    4.55
    %
 Net Trading Portfolio
    
    Net Fair Value(In millions of Pesos, except percentages)
    
    As of December 31, 2010
    
    
    As of December 31, 2009Change in Interest Rates in b.p.
    
    Variation
    
    
    % Change in the RPC
    
    
    Variation
    
    
    % Change in the RPC200
    
    
    (2.4
    )
    
    
    (0.07
    )%
    
    
    (5.3
    )
    
    
    (0.19
    )%150
    
    
    (1.8
    )
    
    
    (0.05
    )%
    
    
    (4.0
    )
    
    
    (0.15
    )%100
    
    
    (1.2
    )
    
    
    (0.03
    )%
    
    
    (2.6
    )
    
    
    (0.09
    )%50
    
    
    (0.6
    )
    
    
    (0.02
    )%
    
    
    (1.3
    )
    
    
    (0.05
    )%Static
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (50)
    
    
    0.6
    
    
    
    0.02
    %
    
    
    1.3
    
    
    
    0.05
    %(100)
    
    
    1.2
    
    
    
    0.03
    %
    
    
    2.6
    
    
    
    0.09
    %(150)
    
    
    1.8
    
    
    
    0.05
    %
    
    
    3.9
    
    
    
    0.14
    %(200)
    
    
    2.4
    
    
    
    0.07
    %
    
    
    5.2
    
    
    
    0.19
    %
 Net Non Trading Portfolio
    
    Net Fair Value(In millions of Pesos, except percentages)
    
    As of December 31, 2010
    
    
    As of December 31, 2009Change in Interest Rates in b.p.
    
    Variation
    
    
    % Change in the RPC
    
    
    Variation
    
    
    % Change in the RPC200
    
    
    (101.2
    )
    
    
    (2.82
    )%
    
    
    (99.3
    )
    
    
    (3.61
    )%150
    
    
    (76.6
    )
    
    
    (2.13
    )%
    
    
    (76.1
    )
    
    
    (2.76
    )%100
    
    
    (51.5
    )
    
    
    (1.43
    )%
    
    
    (52.0
    )
    
    
    (1.89
    )%50
    
    
    (26.0
    )
    
    
    (0.72
    )%
    
    
    (26.6
    )
    
    
    (0.97
    )%Static
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (50)
    
    
    26.4
    
    
    
    0.74
    %
    
    
    27.9
    
    
    
    1.01
    %(100)
    
    
    53.3
    
    
    
    1.48
    %
    
    
    57.1
    
    
    
    2.07
    %(150)
    
    
    80.6
    
    
    
    2.25
    %
    
    
    87.8
    
    
    
    3.19
    %(200)
    
    
    108.4
    
    
    
    3.02
    %
    
    
    120.1
    
    
    
    4.36
    %
  -194-




---



##### Table of Contents



Foreign Exchange Rate Risk
      Value of Foreign Currency Net Position as ofDecember 31, 2010Percentage Change in the Value of the Peso Relative to the Dollar(1)
    
    Amount
    
    
    Absolute Variation
    
    
    % Change(In millions of Pesos, except percentages)40%
    
    
    57.0
    
    
    
    16.3
    
    
    
    40.030%
    
    
    52.9
    
    
    
    12.2
    
    
    
    30.020%
    
    
    48.8
    
    
    
    8.1
    
    
    
    19.910%
    
    
    44.8
    
    
    
    4.1
    
    
    
    10.1Static
    
    
    40.7
    (2)
    
    
    
    
    
    
    (10)%
    
    
    36.6
    
    
    
    (4.1
    )
    
    
    (10.1
    )(20)%
    
    
    32.6
    
    
    
    (8.1
    )
    
    
    (19.9
    )(30)%
    
    
    28.5
    
    
    
    (12.2
    )
    
    
    (30.0
    )(40)%
    
    
    24.4
    
    
    
    (16.3
    )
    
    
    (40.0
    )
 (1)
    
    Devaluation / (Revaluation).(2)
    
    Adjusted to reflect forward purchases and sales of foreign currency without delivery of the underlying asset, registered in memorandum accounts. Value of Foreign Currency Net Position as ofDecember 31, 2009Percentage Change in the Value of the Peso Relative to the Dollar(1)
    
    Amount
    
    
    Absolute Variation
    
    
    % Change(In millions of Pesos, except percentages)40%
    
    
    85.5
    
    
    
    24.4
    
    
    
    39.930%
    
    
    79.4
    
    
    
    18.3
    
    
    
    30.020%
    
    
    73.3
    
    
    
    12.2
    
    
    
    20.010%
    
    
    67.2
    
    
    
    6.1
    
    
    
    10.0Static
    
    
    61.1
    (2)
    
    
    
    
    
    
    (10)%
    
    
    55.0
    
    
    
    (6.1
    )
    
    
    (10.0
    )(20)%
    
    
    48.9
    
    
    
    (12.2
    )
    
    
    (20.0
    )(30)%
    
    
    42.8
    
    
    
    (18.3
    )
    
    
    (30.0
    )(40)%
    
    
    36.7
    
    
    
    (24.4
    )
    
    
    (39.9
    )
 (1)
    
    Devaluation / (Revaluation).(2)
    
    Adjusted to reflect forward purchases and sales of foreign currency without delivery of the underlying asset, registered in memorandum accounts.  -195-




---



##### Table of Contents



Value of Foreign Currency Net Position as ofDecember 31, 2008Percentage Change in the Value of the Peso Relative to the Dollar(1)
    
    Amount
    
    
    Absolute Variation
    
    
    % Change(In millions of Pesos, except percentages)40%
    
    
    318.6
    
    
    
    91.0
    
    
    
    40.030%
    
    
    295.9
    
    
    
    68.3
    
    
    
    30.020%
    
    
    273.1
    
    
    
    45.5
    
    
    
    20.010%
    
    
    250.4
    
    
    
    22.8
    
    
    
    10.0Static
    
    
    227.6
    (2)
    
    
    
    
    
    
    (10)%
    
    
    204.8
    
    
    
    (22.8
    )
    
    
    (10.0
    )(20)%
    
    
    182.1
    
    
    
    (45.5
    )
    
    
    (20.0
    )(30)%
    
    
    159.3
    
    
    
    (68.3
    )
    
    
    (30.0
    )(40)%
    
    
    136.6
    
    
    
    (91.0
    )
    
    
    (40.0
    )
 (1)
    
    Devaluation / (Revaluation).(2)
    
    Adjusted to reflect forward purchases and sales of foreign currency without delivery of the underlying asset, registered in memorandum accounts. 
 Currency Mismatches
       -196-




---



##### Table of Contents



As of December 31, 2010Assets
    
    
    Liabilities
    
    
    Gap(In millions of Pesos)Financial Assets and Liabilities
    
    
    32,948.7
    
    
    
    31,091.5
    
    
    
    1,857.2Pesos  Adjusted by CER
    
    
    577.0
    
    
    
    13.6
    
    
    
    563.4Pesos  Unadjusted
    
    
    25,668.4
    
    
    
    23,582.1
    
    
    
    2,086.3Foreign Currency (1)
    
    
    6,703.3
    
    
    
    7,495.8
    
    
    
    (792.5
    )Other Assets and Liabilities
    
    
    2,350.2
    
    
    
    1,611.7
    
    
    
    738.5Total Gap
    
    
    35,298.9
    
    
    
    32,703.2
    
    
    
    2,595.7Adjusted for Forward Transactions Recorded in Memo AccountsFinancial Assets and Liabilities
    
    
    32,948.7
    
    
    
    31,091.5
    
    
    
    1,857.2Pesos  Adjusted by the CER
    
    
    577.0
    
    
    
    13.6
    
    
    
    563.4Pesos  Unadjusted, Including Shareholders Equity (2)
    
    
    22,260.0
    
    
    
    21,006.9
    
    
    
    1,253.1Foreign Currency (1)(2)
    
    
    10,111.7
    
    
    
    10,071.0
    
    
    
    40.7Other Assets and Liabilities
    
    
    2,350.2
    
    
    
    1,611.7
    
    
    
    738.5Total Adjusted Gap
    
    
    35,298.9
    
    
    
    32,703.2
    
    
    
    2,595.7
 (1)
    
    In Pesos, at an exchange rate of Ps.3.9758 per US$1.0.(2)
    
    Adjusted for forward sales and purchases of foreign exchange made by Banco Galicia and recorded off-balance sheet.   Peso-denominated Assets and Liabilities Adjusted by CER
   Assets and Liabilities Denominated in Foreign Currency
      -197-




---



##### Table of Contents



Non-Adjusted Peso-Denominated Assets and Liabilities
    Other Assets and Liabilities
  
 Market Risk
     (i)
    
    The VaR model enjoys a measured 95%  99% degree of accuracy.
 (ii)
    
    VaR estimates are made for holding periods of one day and n days, where n is
defined as the number of days necessary to settle the position in each security.
 (iii)
    
    In the case of new issuances, the available trading days are taken into consideration;
if there are not enough trading days or if there are no quotations, the volatility of bonds
from domestic issuers with similar risk and characteristics is used.
   -198-




---



##### Table of Contents



Securities
    
    Ps.
    15.0 million.Currencies
    
    Ps.
    1.0 million.Interest Rate Derivatives
    
    Ps.
    0.5 million.Lebac / Nobac
    
    Ps.
    0.9 million.
   Stress Test
     
 Item 12.
    
    Description of Securities Other Than Equity Securities
 
 Item 12.D.
    
    American Depositary Shares
 
 Fees and Charges Applicable to ADS Holders
  Persons depositing or withdrawing shares must pay
    
    For:$5.00 (or less) per 100 ADSs (or portion of 100 ADSs)
    
       Issuance of ADSs, including issuances
resulting from a distribution of shares or rights or
other property   Cancellation of ADSs for the purpose of
withdrawal, including if the deposit agreement
terminates$0.02 (or less) per ADS
    
       Any cash distribution to ADS registered
holdersA fee equivalent to the fee that would be payable if
securities distributed to you had been shares and
the shares had been deposited for issuance of ADSs
    
       Distribution of securities distributed to
holders of deposited securities which are distributed
by the depositary to ADS registered holders
  -199-




---



##### Table of Contents



Persons depositing or withdrawing shares must pay
    
    For:Registration or transfer fees
    
       Transfer and registration of shares on our
share register to or from the name of the depositary
or its agent when you deposit or withdraw sharesExpenses of the depositary
    
       Cable, telex and facsimile transmissions
(when expressly provided in the deposit agreement)   Converting foreign currency to US DollarsTaxes and other governmental charges the depositary
or the custodian have to pay on any ADS or share
underlying an ADS, for example, stock transfer
taxes, stamp duty or withholding taxes.
    
       As necessaryAny charges incurred by the depositary or its agents 
for servicing the deposited securities
    
       As necessary
 
 Fees and Direct and Indirect Payments Made by the Depositary to Us
 Past Fees and Payments
  Future Fees and Payments
     -200-




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##### Table of Contents



PART II
 
 Item 13.
    
    Defaults, Dividend Arrearages and Delinquencies
  
 Item 14.
    
    Material Modifications to the Rights of Security Holders and Use of Proceeds
  
 Item 15.
    
    Controls and Procedures
        -201-




---



##### Table of Contents



Item 16.
    
    [Reserved]
 
 Item 16A.
    
    Audit Committee Financial Expert
  
 Item 16B.
    
    Code of Ethics
  
 Item 16C.
    
    Principal Accountants Fees and Services
  2010
    
    
    2009(In thousands of Pesos)Audit Fees
    
    
    8,018
    
    
    
    6,882Audit Related Fees
    
    
    1,717
    
    
    
    1,648Tax Fees
    
    
    981
    
    
    
    891All Other Fees
    
    
    919
    
    
    
    964Total
    
    
    11,635
    
    
    
    10,385
 Audit Fees
   -202-




---



##### Table of Contents



Audit-Related Fees
  Tax Fees
  All Other Fees
  Audit Committee Pre-approval
  
 Item 16D.
    
    Exemptions from the Listing Standards for Audit Committees
  
 Item 16E.
    
    Purchases of Equity Securities by the Issuer and Affiliated Purchasers
   -203-




---



##### Table of Contents



PART III
 
 Item 17.
    
    Financial Statements
  
 Item 18.
    
    Financial Statements
        
 Item 19.
    
    Exhibits
 Exhibit
    
    Description1.1
    
    
    Unofficial English language translation of the Bylaws (estatutos sociales).****2.1
    
    
    Form of Deposit Agreement between The Bank of New York and the registrant, including the form
of American Depositary Receipt.*2.2
    
    
    Indenture, dated as of May 18, 2004, among Banco Galicia, The Bank of New York and Banco Rio
de la Plata S.A.**2.3
    
    
    Indenture, dated as of June 4, 2009, among Grupo Financiero Galicia, The Bank of New York
Mellon, Banco de Valores S.A. and The Bank of New York (Luxembourg) S.A.*******2.4
    
    
    Indenture, dated as of June 8, 2010, among Grupo Financiero Galicia, The Bank of New York
Mellon, Banco de Valores S.A. and The Bank of New York Mellon (Luxembourg) S.A.********2.5
    
    
    Indenture, dated as of May 4, 2011, among Banco de Galicia y Buenos Aires S.A., The Bank of
New York Mellon, Banco de Valores S.A. and The Bank of New York Mellon (Luxembourg) S.A.2.6
    
    
    Indenture, dated as of January 28, 2011, among Tarjeta Naranja S.A., The Bank of New York
Mellon, Banco de Valores S.A. and The Bank of New York Mellon (Luxembourg) S.A.4.1
    
    
    English translation of form of Financial Trust Contract, dated April 16, 2002, among Banco
Galicia, Banco Provincia de Buenos Aires and BAPRO Mandatos y Negocios S.A.***4.2
    
    
    Form of Restructured Loan Facility (as evidenced by the Note Purchase Agreement, dated as of
April 27, 2004, among Banco de Galicia y Buenos Aires S.A., Barclays Bank PLC, the holders
party thereto and Deutsche Bank Trust Company Americas).**
  -204-




---



##### Table of Contents



Exhibit
    
    Description4.3
    
    
    Form of First Amendment and Waiver to Restructured Loan Facility (as evidenced by the First
Amendment and Waiver to the Note Purchase Agreement, dated as of December 20, 2004, among
Banco de Galicia y Buenos Aires S.A., the holders party thereto and Deutsche Bank Trust
Company Americas).****4.4
    
    
    Form of Second Amendment to Restructured Loan Facility (as evidenced by the Second Amendment
to the Note Purchase Agreement, dated as of August 25, 2006, among Banco de Galicia y Buenos
Aires S.A., the holders party thereto and Deutsche Bank Trust Company Americas).*****4.5
    
    
    Form of Third Amendment to Restructured Loan Facility (as evidenced by the Third Amendment to
the Note Purchase Agreement, dated as of December 28, 2007, among Banco de Galicia y Buenos
Aires S.A., the holders party thereto and Deutsche Bank Trust Company Americas).******4.6
    
    
    Loan Agreement, dated as of July 24, 2007, between Grupo Financiero Galicia S.A. and Merrill
Lynch International.******4.7
    
    
    Stock Purchase Agreement, dated as of June 1, 2009, among American International Group Inc.,
AIG Consumer Finance Group, Inc. and Banco de Galicia y Buenos Aires S.A., and the other
parties signatory thereto.********4.8
    
    
    Loan Agreement, dated as of September 8, 2010, between Banco de Galicia y Buenos Aires S.A.
and International Finance Corporation.4.9
    
    
    Loan Agreement, dated as of December 17, 2010, between Banco de Galicia y Buenos Aires S.A.
and Netherlands Financierings-Moatschappy Voor Ont Wikkelingslanden N.V.4.10
    
    
    Loan Agreement, dated as of February 15, 2011, between Banco de Galicia y Buenos Aires S.A.
and Inter-American Development Bank.8.1
    
    For a list of our subsidiaries as of the end of the fiscal year covered by this annual
report, please see Item 4. Information on the Company-Organizational Structure.11.1
    
    
    Code of Ethics.*******11.2
    
    
    Code of Corporate Governance Good Practices.12.1
    
    
    Certification of the principal executive officer required under Rule 13a-14(a) or Rule
15d-14(a), pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.12.2
    
    
    Certification of the principal financial officer required under Rule 13a-14(a) or Rule
15d-14(a), pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.13.1
    
    
    Certification of the principal executive officer required pursuant to 18 U.S.C. Section 1350,
as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.13.2
    
    
    Certification of the principal financial officer required pursuant to 18 U.S.C. Section 1350,
as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
 *
    
    Incorporated by reference from our Registration Statement on Form F-4 (333-11960).**
    
    Incorporated by reference from our Annual Report on Form 20-F for the year ended December 31,
2003.***
    
    Incorporated by reference from our Annual Report on Form 20-F for the year ended December 31,
2002.****
    
    Incorporated by reference from our Annual Report on Form 20-F for the year ended December 31,
2004.*****
    
    Incorporated by reference from our Annual Report on Form 20-F for the year ended December
31, 2006.******
    
    Incorporated by reference from our Annual Report on Form 20-F for the year ended December
31, 2007.*******
    
    Incorporated by reference from our Annual Report on Form 20-F for the year ended December
31, 2008.********
    
    Incorporated by reference from our Annual Report on Form 20-F for the year ended
December 31, 2009.  -205-




---



##### Table of Contents



SIGNATURE
  GRUPO FINANCIERO GALICIA S.A.By:
    /s/ Pedro Alberto RichardsName:
    Pedro Alberto RichardsTitle:
    Chief Executive OfficerBy:
    /s/ José Luis GentileName:
    José Luis GentileTitle:
    Chief Financial Officer   -206-




---



##### 



GRUPO FINANCIERO GALICIA S.A. AND SUBSIDIARIES
 INDEX TO CONSOLIDATED FINANCIAL STATEMENTS
 PageReport of the Independent Registered Public Accounting Firm
    
    
    F-2Consolidated Balance Sheets as of December 31, 2010 and 2009
    
    
    F-3Consolidated Statements of Income for the fiscal years ended December 31, 2010, 2009 and 2008
    
    
    F-6Consolidated Statements of Cash Flows for the fiscal years ended December 31, 2010, 2009 and 2008
    
    
    F-8Consolidated Statements of Changes in Shareholders Equity for the fiscal years ended December 31, 2010,
2009 and 2008
    
    
    F-10Notes to the Consolidated Financial Statements
    
    
    F-11
   F-1




---



##### Table of Contents



Report of Independent Registered Public Accounting Firm
       
  F-2




---



##### Table of Contents



Grupo Financiero Galicia S.A. and Subsidiaries
 
 Consolidated Balance Sheets
As of December 31, 2010 and 2009
 December 31,2010
    
    
    2009ASSETSA. Cash and due from banksCash
    
    
    1,489,374
    
    
    
    1,379,888Financial institutions and correspondents
    
    
    4,156,197
    
    
    
    2,316,421Argentine Central Bank
    
    
    3,932,281
    
    
    
    2,066,792Other local financial institutions
    
    
    14,607
    
    
    
    6,783Foreign
    
    
    209,309
    
    
    
    242,846Ps.
    5,645,571
    
    
    Ps.
    3,696,309B. Government and corporate securitiesHoldings of investment account securities
    
    
    133,756
    
    
    
    Holdings of securities in special investment account
    
    
    
    
    
    
    43,350Holdings of trading securities
    
    
    68,231
    
    
    
    114,186Government securities from repo transactions with the Argentine
Central Bank
    
    
    
    
    
    
    152,650Government securities without quotation
    
    
    
    
    
    
    1,981,972Securities issued by the Argentine Central Bank
    
    
    2,065,723
    
    
    
    1,615,078Investments in quoted corporate securities
    
    
    10,302
    
    
    
    13,171Ps.
    2,278,012
    
    
    Ps.
    3,920,407C. LoansTo the non-financial public sector
    
    
    24,565
    
    
    
    25,416To the financial sector
    
    
    80,633
    
    
    
    25,352Interbank loans  (call money loans granted)
    
    
    32,500
    
    
    
    25,300Other loans to domestic financial institutions
    
    
    47,968
    
    
    
    24Accrued interest, adjustments and exchange rate differences
receivable
    
    
    165
    
    
    
    28To the non-financial private sector and residents abroad
    
    
    22,287,056
    
    
    
    14,233,579Overdrafts
    
    
    977,890
    
    
    
    630,068Promissory notes
    
    
    4,534,326
    
    
    
    3,205,433Mortgage loans
    
    
    950,237
    
    
    
    964,291Pledge loans
    
    
    119,175
    
    
    
    64,819Personal loans
    
    
    4,093,559
    
    
    
    1,724,413Credit card loans
    
    
    9,120,092
    
    
    
    5,691,335Other
    
    
    2,297,507
    
    
    
    1,828,591Accrued interest, adjustments and quotation differences receivable
    
    
    277,070
    
    
    
    178,837Documented interest
    
    
    (81,804
    )
    
    
    (54,185
    )Unallocated collections
    
    
    (996
    )
    
    
    (23
    )Allowances
    
    
    (1,038,473
    )
    
    
    (806,446
    )Ps.
    21,353,781
    
    
    Ps.
    13,477,901D. Other receivables resulting from financial brokerageArgentine Central Bank
    
    
    402,386
    
    
    
    493,129Amounts receivable for spot and forward sales to be settled
    
    
    237,333
    
    
    
    23,650Securities receivable under spot and forward purchases to be settled
    
    
    914,124
    
    
    
    681,148Negotiable obligations without quotation
    
    
    99,237
    
    
    
    38,979Balances from forward transactions without delivery of underlying
asset to be settled
    
    
    5,403
    
    
    
    1,040Other
    
    
    1,799,313
    
    
    
    2,127,991Allowances
    
    
    (131,806
    )
    
    
    (30,570
    )Ps.
    3,325,990
    
    
    Ps.
    3,335,367
 The accompanying Notes are an integral part of these consolidated financial statements
  F-3




---



##### Table of Contents



Grupo Financiero Galicia S.A. and Subsidiaries
 Consolidated Balance Sheets  Continued
As of December 31, 2010 and 2009
 December 31,2010
    
    
    2009ASSETS (Continued)E. Assets under financial leasesAssets under financial leases
    
    
    426,626
    
    
    
    362,298Interest and adjustments
    
    
    6,923
    
    
    
    7,989Allowances
    
    
    (5,469
    )
    
    
    (6,070
    )Ps.
    428,080
    
    
    Ps.
    364,217F. Equity investmentsIn financial institutions
    
    
    1,971
    
    
    
    1,882Other
    
    
    64,140
    
    
    
    57,973Allowances
    
    
    (13,263
    )
    
    
    (5,960
    )Ps.
    52,848
    
    
    Ps.
    53,895G. Miscellaneous receivablesReceivables for assets sold
    
    
    35,403
    
    
    
    34,106Tax on minimum presumed income  Tax credit
    
    
    395,738
    
    
    
    328,619Other
    
    
    677,151
    
    
    
    820,875Accrued interest on receivables for assets sold
    
    
    135
    
    
    
    124Other accrued interest and adjustments receivable
    
    
    159
    
    
    
    109Allowances
    
    
    (26,025
    )
    
    
    (28,655
    )Ps.
    1,082,561
    
    
    Ps.
    1,155,178H. Bank premises and equipment
    
    Ps.
    948,067
    
    
    Ps.
    898,321I. Miscellaneous assets
    
    Ps.
    81,403
    
    
    Ps.
    63,841J. Intangible assetsGoodwill
    
    
    23,467
    
    
    
    26,346Organization and development expenses
    
    
    430,648
    
    
    
    545,978Ps.
    454,115
    
    
    Ps.
    572,324K. Unallocated items
    
    
    4,844
    
    
    
    27,239L. Other Assets
    
    
    52,791
    
    
    
    37,367Total Assets
    
    Ps.
    35,708,063
    
    
    Ps.
    27,602,366
 The accompanying Notes are an integral part of these consolidated financial statements
  F-4




---



##### Table of Contents



Grupo Financiero Galicia S.A. and Subsidiaries
 Consolidated Balance Sheets  Continued
As of December 31, 2010 and 2009
 December 31,2010
    
    
    2009LIABILITIES AND SHAREHOLDERS EQUITYM. DepositsNon-financial public sector
    
    Ps.
    874,201
    
    
    Ps.
    1,377,236Financial sector
    
    
    9,934
    
    
    
    228,480Non-financial private sector and residents abroad
    
    
    21,338,629
    
    
    
    15,433,650Current accounts
    
    
    5,466,532
    
    
    
    3,631,399Saving accounts
    
    
    6,356,877
    
    
    
    4,765,626Time deposits
    
    
    8,975,889
    
    
    
    6,727,792Investment accounts
    
    
    156,935
    
    
    
    109Other
    
    
    306,139
    
    
    
    248,247Accrued interest and quotation differences payable
    
    
    76,257
    
    
    
    60,477Ps.
    22,222,764
    
    
    Ps.
    17,039,366N. Other liabilities resulting from financial brokerageArgentine Central Bank
    
    
    2,105
    
    
    
    3,215Other
    
    
    2,105
    
    
    
    3,215Banks and international entities
    
    
    646,745
    
    
    
    545,022Unsubordinated negotiable obligations
    
    
    775,863
    
    
    
    1,539,754Amounts payable for spot and forward purchases to be settled
    
    
    950,453
    
    
    
    618,375Securities to be delivered under spot and forward sales to be settled
    
    
    229,684
    
    
    
    175,655Loans from domestic financial institutions
    
    
    613,197
    
    
    
    251,481Interbank loans (call money loans received)
    
    
    
    
    
    
    70,000Other loans from domestic financial institutions
    
    
    610,022
    
    
    
    179,701Accrued interest payable
    
    
    3,175
    
    
    
    1,780Balances from forward transactions without delivery of underlying
asset to be settled
    
    
    11,085
    
    
    
    8,060Other
    
    
    4,358,049
    
    
    
    2,934,951Accrued interest and quotation differences payable
    
    
    20,890
    
    
    
    42,924Ps.
    7,608,071
    
    
    Ps.
    6,119,437O. Miscellaneous liabilitiesDividends payable
    
    
    20,000
    
    
    
    17,000Directors and Syndics fees
    
    
    9,672
    
    
    
    7,071Other
    
    
    879,957
    
    
    
    554,628Adjustments and accrued interests
    
    
    3
    
    
    
    Ps.
    909,632
    
    
    Ps.
    578,699P. Provisions
    
    
    698,244
    
    
    
    255,922Q. Subordinated negotiable obligations
    
    
    1,253,027
    
    
    
    1,137,447R. Unallocated items
    
    
    24,456
    
    
    
    7,393S. Other Liabilities
    
    
    140,158
    
    
    
    122,994T. Non-controlling interests
    
    
    382,211
    
    
    
    288,569Total Liabilities
    
    Ps.
    33,238,563
    
    
    Ps.
    25,549,827SHAREHOLDERS EQUITY
    
    
    2,469,500
    
    
    
    2,052,539Total Liabilities and Shareholders Equity
    
    Ps.
    35,708,063
    
    
    Ps.
    27,602,366
 The accompanying Notes are an integral part of these consolidated financial statements
  F-5




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##### Table of Contents



Grupo Financiero Galicia S.A. and Subsidiaries
 
 Consolidated Statements of Income
For the fiscal years ended December 31, 2010, 2009 and 2008
 December 31,2010
    
    
    2009
    
    
    2008A. Financial incomeInterest on cash and due from banks
    
    Ps.
    746
    
    
    Ps.
    638
    
    
    Ps.
    8,765Interest on loans granted to the financial sector
    
    
    8,542
    
    
    
    4,819
    
    
    
    3,896Interest on overdrafts
    
    
    186,443
    
    
    
    191,791
    
    
    
    182,804Interest on promissory notes
    
    
    498,436
    
    
    
    400,898
    
    
    
    440,490Interest on mortgage loans
    
    
    103,888
    
    
    
    118,474
    
    
    
    126,543Interest on pledge loans
    
    
    11,535
    
    
    
    11,305
    
    
    
    14,998Interest on credit card loans
    
    
    1,143,592
    
    
    
    837,484
    
    
    
    656,477Interest on financial leases
    
    
    63,749
    
    
    
    82,458
    
    
    
    82,166Interest on other loans
    
    
    981,709
    
    
    
    436,759
    
    
    
    317,501Interest on other receivables resulting from financial brokerage
    
    
    15,438
    
    
    
    23,255
    
    
    
    33,994Net income from government and corporate securities
    
    
    409,165
    
    
    
    559,099
    
    
    
    238,098Income from secured loans  Decree No. 1387/01
    
    
    3,608
    
    
    
    11,460
    
    
    
    59,851Consumer price index adjustment (CER)
    
    
    5,331
    
    
    
    24,429
    
    
    
    123,948Exchange rate differences on foreign currency
    
    
    76,296
    
    
    
    127,454
    
    
    
    77,898Other
    
    
    107,648
    
    
    
    175,314
    
    
    
    191,922Ps.
    3,616,126
    
    
    Ps.
    3,005,637
    
    
    Ps.
    2,559,351B. Financial expensesInterest on current account deposits
    
    
    5,476
    
    
    
    12,852
    
    
    
    21,641Interest on savings account deposits
    
    
    5,442
    
    
    
    3,722
    
    
    
    3,446Interest on time deposits
    
    
    748,205
    
    
    
    858,468
    
    
    
    757,699Interest on interbank loans received (call money loans)
    
    
    6,158
    
    
    
    3,702
    
    
    
    5,696Interest on financing from the financial sector
    
    
    6,525
    
    
    
    1,276
    
    
    
    774Interest on other liabilities resulting from financial brokerage
    
    
    165,604
    
    
    
    231,972
    
    
    
    297,026Interest on subordinated obligations
    
    
    137,788
    
    
    
    125,343
    
    
    
    101,424Other interest
    
    
    6,367
    
    
    
    2,882
    
    
    
    3,313Consumer price index adjustment
    
    
    59
    
    
    
    345
    
    
    
    9,249Contributions made to Deposit Insurance Fund
    
    
    31,839
    
    
    
    26,030
    
    
    
    23,555Other
    
    
    299,218
    
    
    
    193,867
    
    
    
    197,196Ps.
    1,412,681
    
    
    Ps.
    1,460,459
    
    
    Ps.
    1,421,019C. Gross brokerage margin
    
    
    2,203,445
    
    
    
    1,545,178
    
    
    
    1,138,332Loan loss provisions
    
    
    551,524
    
    
    
    639,505
    
    
    
    395,389D. Income from servicesIn relation to lending transactions
    
    
    660,987
    
    
    
    456,466
    
    
    
    379,752In relation to borrowing transactions
    
    
    543,309
    
    
    
    440,633
    
    
    
    370,181Other commissions
    
    
    42,152
    
    
    
    26,781
    
    
    
    22,415Other
    
    
    1,268,486
    
    
    
    902,903
    
    
    
    799,800Ps.
    2,514,934
    
    
    Ps.
    1,826,783
    
    
    Ps.
    1,572,148E. Expenses for servicesCommissions
    
    
    291,701
    
    
    
    197,714
    
    
    
    164,780Other
    
    
    441,356
    
    
    
    318,149
    
    
    
    219,500Ps.
    733,057
    
    
    Ps.
    515,863
    
    
    Ps.
    384,280
 The accompanying Notes are an integral part of these consolidated financial statements
  F-6




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##### Table of Contents



Grupo Financiero Galicia S.A. and Subsidiaries
 Consolidated Statements of Income  Continued
For the fiscal years ended December 31, 2010, 2009 and 2008
 December 31,2010
    
    
    2009
    
    
    2008F. Administrative expensesPersonnel expenses
    
    
    1,602,711
    
    
    
    1,119,084
    
    
    
    966,213Directors and syndics fees
    
    
    11,402
    
    
    
    8,563
    
    
    
    8,153Other fees
    
    
    99,702
    
    
    
    70,144
    
    
    
    56,938Advertising and publicity
    
    
    189,596
    
    
    
    127,836
    
    
    
    146,496Taxes
    
    
    190,722
    
    
    
    139,327
    
    
    
    103,998Depreciation of bank premises and equipment
    
    
    76,899
    
    
    
    73,904
    
    
    
    61,910Amortization of organization expenses
    
    
    63,132
    
    
    
    45,908
    
    
    
    37,950Other operating expenses
    
    
    373,641
    
    
    
    280,104
    
    
    
    249,219Other
    
    
    237,509
    
    
    
    164,259
    
    
    
    150,201Ps.
    2,845,314
    
    
    Ps.
    2,029,129
    
    
    Ps.
    1,781,078Net Income from financial brokerage
    
    Ps.
    588,484
    
    
    Ps.
    187,464
    
    
    Ps.
    149,733G. Non-controlling interests result
    
    Ps.
    (104,333
    )
    
    Ps.
    (46,512
    )
    
    Ps.
    (35,812
    )H. Miscellaneous incomeNet lncome from equity investments
    
    
    62,054
    
    
    
    11,347
    
    
    
    56,764Default interests
    
    
    56,193
    
    
    
    37,243
    
    
    
    4,429Loans recovered and allowances reversed
    
    
    154,328
    
    
    
    48,347
    
    
    
    103,992Other
    
    
    474,262
    
    
    
    502,346
    
    
    
    333,646Consumer price index adjustment (CER)
    
    
    45
    
    
    
    78
    
    
    
    28Ps.
    746,882
    
    
    Ps.
    599,361
    
    
    Ps.
    498,859I. Miscellaneous lossesDefault interests and charges in favor of the Argentine
Central Bank
    
    
    58
    
    
    
    72
    
    
    
    17Loan loss provisions for miscellaneous receivables and
other provisions
    
    
    102,387
    
    
    
    109,296
    
    
    
    161,703Amortization of differences arising from court resolutions
    
    
    280,946
    
    
    
    109,310
    
    
    
    39,545Depreciation and losses from miscellaneous assets
    
    
    1,347
    
    
    
    1,708
    
    
    
    1,405Amortization of goodwill
    
    
    11,330
    
    
    
    11,457
    
    
    
    20,462Other
    
    
    167,832
    
    
    
    123,168
    
    
    
    138,784Consumer price index adjustment
    
    
    41
    
    
    
    35
    
    
    
    31Ps.
    563,941
    
    
    Ps.
    355,046
    
    
    Ps.
    361,947Net Income before tax
    
    
    667,092
    
    
    
    385,267
    
    
    
    250,833J. Income tax
    
    Ps.
    258,191
    
    
    Ps.
    155,992
    
    
    Ps.
    74,014Net Income for the fiscal year
    
    Ps.
    408,901
    
    
    Ps.
    229,275
    
    
    Ps.
    176,819Net Income per common share (basic and assuming full
dilution) in Argentine Pesos
    
    
    0.329
    
    
    
    0.185
    
    
    
    0.142
 The accompanying Notes are an integral part of these consolidated financial statements
  F-7




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##### Table of Contents



Grupo Financiero Galicia S.A. and Subsidiaries
 
 Consolidated Statements of Cash Flows
For the fiscal years ended December 31, 2010, 2009 and 2008
 December 31,2010
    
    
    2009
    
    
    2008Cash Flow from operating activities:Net Income for the year
    
    Ps.
    408,901
    
    
    Ps.
    229,275
    
    
    Ps.
    176,819Adjustments to reconcile net income to net cash from
operating activities:Depreciation of bank premises and equipment and
miscellaneous assets
    
    
    77,824
    
    
    
    74,856
    
    
    
    63,309Amortization of intangible assets
    
    
    355,408
    
    
    
    166,675
    
    
    
    97,957Increase in allowances for loan and other losses, net of reversals
    
    
    346,657
    
    
    
    487,636
    
    
    
    335,658Equity gain of unconsolidated subsidiaries
    
    
    (62,054
    )
    
    
    (11,347
    )
    
    
    (56,764
    )Gain on sale of premises and equipment
    
    
    (5,184
    )
    
    
    (13,997
    )
    
    
    (695
    )Consumer price index adjustment (CER/CVS)
    
    
    14,977
    
    
    
    6,482
    
    
    
    (113,226
    )Unrealized foreign exchange loss
    
    
    (270,210
    )
    
    
    (420,052
    )
    
    
    (229,426
    )Decrease in government securities
    
    
    327,802
    
    
    
    1,120,852
    
    
    
    802,604Increase in other assets
    
    
    (98,009
    )
    
    
    (37,908
    )
    
    
    (122,938
    )Decrease in other liabilities
    
    
    (223,912
    )
    
    
    (137,712
    )
    
    
    (101,284
    )Net cash provided by operating activities
    
    Ps.
    872,200
    
    
    Ps.
    1,464,760
    
    
    Ps.
    852,014Cash Flow from investing activities:Payment for the CFA acquisitions net of cash acquired
    
    
    (221,729
    )
    
    
    
    
    
    
    (Increase) / Decrease in loans, net
    
    
    (4,539,425
    )
    
    
    (1,185,582
    )
    
    
    1,501,309Decrease of available for sales securities
    
    
    2,376,489
    
    
    
    
    
    
    
    36,548Sales of investments in other companies
    
    
    846
    
    
    
    
    
    
    
    10,421Increase in equity investments in other companies
    
    
    
    
    
    
    (7,231
    )
    
    
    (5,063
    )Increase in deposits at the Argentine Central Bank
    
    
    (62,431
    )
    
    
    (72,188
    )
    
    
    (76,838
    )Additions to bank premises and equipment, miscellaneous,
and intangible assets
    
    
    (391,080
    )
    
    
    (282,553
    )
    
    
    (403,085
    )Proceeds from sales of premises and equipment
    
    
    24,190
    
    
    
    21,551
    
    
    
    30,337Net cash (used in) / provided by investing activities
    
    Ps.
    (2,813,140
    )
    
    Ps.
    (1,526,003
    )
    
    Ps.
    1,093,629Cash Flow from financing activities:Cash dividends paid to Non-controlling interests
    
    
    (10,877
    )
    
    
    (10,728
    )
    
    
    (1,404
    )Increase / (Decrease) in deposits, net
    
    
    4,180,854
    
    
    
    1,838,725
    
    
    
    (57,029
    )Borrowings under credit facilities  long-term
    
    
    460,280
    
    
    
    197,677
    
    
    
    269,498Payments on credit facilities  long-term
    
    
    (1,452,817
    )
    
    
    (778,594
    )
    
    
    (743,476
    )Increase / (Decrease) in short-term borrowings, net
    
    
    456,209
    
    
    
    (319,911
    )
    
    
    (156,579
    )Increase / (Decrease) in repurchase agreements
    
    
    210,987
    
    
    
    (409,314
    )
    
    
    (376,645
    )Net cash used in financing activities
    
    Ps.
    3,844,636
    
    
    Ps.
    517,855
    
    
    Ps.
    (1,065,635
    )
 The accompanying Notes are an integral part of these consolidated financial statements
  F-8




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##### Table of Contents



Grupo Financiero Galicia S.A. and Subsidiaries
 Consolidated Statements of Cash Flows  Continued
For the fiscal years ended December 31, 2010, 2009 and 2008  (Expressed in thousands of Argentine pesos)
 December 31,2010
    
    
    2009
    
    
    2008Increase in cash and cash equivalents, net
    
    Ps.
    1,903,696
    
    
    Ps.
    456,612
    
    
    Ps.
    880,008Cash and cash equivalents at the beginning of the year
    
    
    5,428,730
    
    
    
    4,795,383
    
    
    
    3,766,207Effect of exchange rate changes on cash and cash
equivalents
    
    
    111,091
    
    
    
    176,735
    
    
    
    149,168Cash and cash equivalents at the end of the year
    
    Ps.
    7,443,517
    
    
    Ps.
    5,428,730
    
    
    Ps.
    4,795,383Supplemental disclosures relative to cash flows:Interest paid
    
    Ps.
    1,084,707
    
    
    Ps.
    1,285,145
    
    
    Ps.
    1,227,389Income tax paid
    
    Ps.
    98,278
    
    
    Ps.
    124,653
    
    
    Ps.
    64,914Minimum Presumed Income Tax (*)
    
    Ps.
    52,947
    
    
    Ps.
    35,501
    
    
    Ps.
    19,767Non-Cash Investing and financing activitiesTrust Interest
    
    Ps.
    
    
    
    Ps.
    40,998
    
    
    Ps.
    159,376Assets Exchange Transactions
    
    Ps.
    
    
    
    Ps.
    1,333,647
    
    
    Ps.
    
 (*)
    
    The MPIT is calculated based on assets and can be credited against future income tax.
 The accompanying Notes are an integral part of these consolidated financial statements
  F-9




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##### Table of Contents



Grupo Financiero Galicia S.A. and Subsidiaries
 
 Consolidated Statements of Changes in Shareholders Equity
For the years ended December 31, 2010, 2009 and 2008
 Inflationadjustments to
    
    
    
    
    
    
    
    
    
    
    (AccumulatedCapital Stock
    
    
    
    
    
    
    
    
    
    
    deficit) /
    
    
    TotalCapital
    
    
    Paid in
    
    
    and Paid in
    
    
    Profit reserves
    
    
    Retained
    
    
    ShareholdersStock
    
    
    Capital
    
    
    Capital
    
    
    Legal
    
    
    Other
    
    
    earnings
    
    
    EquityBalance at December 31, 2007
    
    Ps.
    1,241,407
    
    
    Ps.
    606
    
    
    Ps.
    278,131
    
    
    Ps.
    34,855
    
    
    Ps.
    53,469
    
    
    Ps.
    46,037
    
    
    Ps.
    1,654,505Distribution of retained
earnings by the
shareholders meeting on
April 29, 2008Legal Reserve
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    2,302
    
    
    
    
    
    
    
    (2,302
    )
    
    
    Discretionary Reserve
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    43,735
    
    
    
    (43,735
    )
    
    
    Valuation Differences
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    14,421
    
    
    
    
    
    
    
    14,421Net Income for the year
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    176,819
    
    
    
    176,819Balance at December 31, 2008
    
    Ps.
    1,241,407
    
    
    Ps.
    606
    
    
    Ps.
    278,131
    
    
    Ps.
    37,157
    
    
    Ps.
    111,625
    
    
    
    176,819
    
    
    
    1,845,745Distribution of retained
earnings by the
shareholders meeting on
April 28, 2009Legal Reserve
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    8,841
    
    
    
    
    
    
    
    (8,841
    )
    
    
    Discretionary Reserve
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    167,978
    
    
    
    (167,978
    )
    
    
    Valuation Differences
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (22,481
    )
    
    
    
    
    
    
    (22,481
    )Net Income for the year
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    229,275
    
    
    
    229,275Balance at December 31, 2009
    
    Ps.
    1,241,407
    
    
    Ps.
    606
    
    
    Ps.
    278,131
    
    
    Ps.
    45,998
    
    
    Ps.
    257,122
    
    
    
    229,275
    
    
    
    2,052,539Distribution of retained
earnings by the
shareholders meeting on
April 14, 2010Legal Reserve
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    11,464
    
    
    
    
    
    
    
    (11,464
    )
    
    
    Discretionary Reserve
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    217,811
    
    
    
    (217,811
    )
    
    
    Valuation Differences
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    8,060
    
    
    
    
    
    
    
    8,060Net Income for the year
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    408,901
    
    
    
    408,901Balance at December 31, 2010
    
    Ps.
    1,241,407
    
    
    Ps.
    606
    
    
    Ps.
    278,131
    
    
    Ps.
    57,462
    
    
    Ps.
    482,993
    
    
    
    408,901
    
    
    
    2,469,500
 The accompanying Notes are an integral part of these consolidated financial statements
  F-10




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##### Table of Contents



Grupo Financiero Galicia S.A. and Subsidiaries
 
 Notes to the Consolidated Financial Statements
For the years ended December 31, 2010, 2009 and 2008
 1. Basis of Presentation.
     December 31,Issuing Company
    
    2010
    
    
    2009Grupo Financiero Galicia S.A.Galval Agente de Valores S.A.
    
    
    100.00
    %
    
    
    100.00
    %GV Mandataria de Valores S.A.
    
    
    100.00
    %
    
    
    100.00
    %Net Investment S.A.
    
    
    99,36
    %
    
    
    99.34
    %Galicia Warrants S.A.
    
    
    99.36
    %
    
    
    99.34
    %Sudamericana Holding S.A.
    
    
    99.36
    %
    
    
    99.34
    %Banco de Galicia y Buenos Aires S.A.
    
    
    94.84
    %
    
    
    94.71
    %Banco Galicia Uruguay S.A. (In Liquidation)
    
    
    94.84
    %
    
    
    94.71
    %Tarjetas Regionales S.A.
    
    
    94.84
    %
    
    
    94.71
    %Galicia Administradora de Fondos S.A.Sociedad
Gerente de Fondos Comunes de Inversión
    
    
    94.84
    %
    
    
    94.71
    %Galicia (Cayman) Ltd.
    
    
    94.84
    %
    
    
    94.71
    %Tarjetas del Mar S.A.
    
    
    94.84
    %
    
    
    94.70
    %Compañía Financiera Argentina S.A.
    
    
    94.84
    %
    
    
    Cobranzas y Servicios S.A.
    
    
    94.84
    %
    
    
    Procesadora Regional S.A.
    
    
    94.84
    %
    
    
    Galicia Valores S.A. Sociedad de Bolsa
    
    
    94.83
    %
    
    
    94.70
    %Tarjeta Naranja S.A.
    
    
    75.87
    %
    
    
    75.76
    %Cobranzas Regionales S.A.
    
    
    73.54
    %
    
    
    73.43
    %Tarjetas Cuyanas S.A.
    
    
    56.90
    %
    
    
    56.82
    %Tarjeta Naranja Dominicana S.A.
    
    
    37.94
    %
    
    
    37.88
    %Galicia Factoring y Leasing S.A. ( In Liquidation )
    
    
    
    
    
    
    94.69
    %
  F-11




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##### Table of Contents



Grupo Financiero Galicia S.A. and Subsidiaries
 Notes to the Consolidated Financial Statements
For the years ended December 31, 2010, 2009 and 2008
   2. Significant Accounting Policies.
      2.1 Presentation of Financial Statements in Constant Argentine Pesos.
     F-12




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##### Table of Contents



Grupo Financiero Galicia S.A. and Subsidiaries
 Notes to the Consolidated Financial Statements
For the years ended December 31, 2010, 2009 and 2008
 2.2 Foreign Currency.
    2.3 Government and Corporate Securities.
                  F-13




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##### Table of Contents



Grupo Financiero Galicia S.A. and Subsidiaries
 Notes to the Consolidated Financial Statements
For the years ended December 31, 2010, 2009 and 2008
            2.4 Financial Trust Debt Securities and Certificates of Participation.
  2.5 Interest Income (Expense) Recognition.
    F-14




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##### Table of Contents



Grupo Financiero Galicia S.A. and Subsidiaries
 Notes to the Consolidated Financial Statements
For the years ended December 31, 2010, 2009 and 2008
  2.6 Allowances for Loan Losses.
  2.7 Provisions for Contingencies.
  2.8 Equity Investments.
   
    
    Ownership of a portion of a related companys capital granting the voting power necessary
to influence the approval of such companys financial statements and profits distribution.
 
    
    Representation in the related companys board of directors or corporate governance body.
 
    
    Participation in the definition of the related companys policies.
 
    
    Existence of significant transactions between the company holding the interest and the
related company (for example, when the former is the latters only supplier or by far its most
important client).
 
    
    Interchange of senior officers among companies.
 
    
    Technical dependence of one of the companies on the other.
   F-15




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##### Table of Contents



Grupo Financiero Galicia S.A. and Subsidiaries
 Notes to the Consolidated Financial Statements
For the years ended December 31, 2010, 2009 and 2008
 2.9 Bank Premises and Equipment and Miscellaneous Assets.
      2.10 Intangible Assets.
       F-16




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##### Table of Contents



Grupo Financiero Galicia S.A. and Subsidiaries
 Notes to the Consolidated Financial Statements
For the years ended December 31, 2010, 2009 and 2008
 2.11 Shareholders Equity.
  2.12 Minimum Presumed Income Tax and Income Tax.
     2.13 Statements of Cash Flows.
 Statement of
Cash Flows
  2.14 Use of Estimates.
  3. Restricted Assets.
   F-17




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##### Table of Contents



Grupo Financiero Galicia S.A. and Subsidiaries
 Notes to the Consolidated Financial Statements
For the years ended December 31, 2010, 2009 and 2008
  December 31,2010
    
    
    2009Peso balances
    
    Ps.
    2,841,388
    
    
    Ps.
    1,985,771Foreign currency balances
    
    
    1,903,774
    
    
    
    1,715,157
  December 31,2010
    
    
    2009Funds and securities pledged under various arrangements
    
    Ps.
    943,830
    
    
    Ps.
    1,043,398Shares on equity investments (*)
    
    
    5,250
    
    
    
    5,250Deposits in the Argentine Central Bank, restricted
under Argentine Central Bank regulations
    
    
    2,402
    
    
    
    3,668Loans pledged and real property granted as
collateral-Banco Galicia Uruguay S.A. (**)
    
    
    
    
    
    
    3,857Loans granted as collateral(***)
    
    
    85,147
    
    
    
    199,801Total
    
    Ps.
    1,036,629
    
    
    Ps.
    1,255,974
 (*)
    
    Shares over which transferability is subject to prior approval of the National or Provincial
authorities, as applicable, under the terms of certain concession contracts signed.The Bank, as a shareholder of Aguas Cordobesas S. A. and proportionally to its 10.833% interest, is
jointly responsible for the contractual obligations arising from the concession contract during the
entire term thereof. Should any of the other shareholders fail to comply with the commitments
arising from their joint responsibility, the Bank may be forced to assume the unfulfilled
commitment by the grantor, but only in the proportion and to the extent of the interest held by the
Bank.(**)
    
    Under a fixed pledged agreement signed on July 24, 2003 and registered with the Registry of
Property Movable Property  Pledges Division of Montevideo  Uruguay, on August 5, 2003, Galicia
Uruguay S.A.s credit rights against all of its debtors have been pledged in favor of the holders of
transferable time deposit certificates and/or negotiable obligations issued in compliance with the
debt restructuring plan approved. Galicia Uruguay S.A. wholly repaid in advance the remaining
balance of the debt restructuring plan and therefore and having fulfilled its obligations, its
shareholders have resolved, at the Shareholders Meeting held on June 30, 2010, to voluntarily
dissolve and liquidate the company.(***)
    
    Securities granted as collateral for lines of credit provided by the International Finance
Corporation (IFC). The Bank used Bonar 2015 to collateralized Ps.55,075 IFC lines of credit at
December 31, 2010. At December 2009, the Bank used BODEN 2012 to collateralized Ps.70,983 of IFC
lines of credit.
  F-18




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##### Table of Contents



Grupo Financiero Galicia S.A. and Subsidiaries
 Notes to the Consolidated Financial Statements
For the years ended December 31, 2010, 2009 and 2008
 4. Interest-Bearing Deposits with Other Banks.
 .
 5. Government and Corporate Securities.
  December 31,2010
    
    
    2009Government SecuritiesIn investment accounts:Peso-denominated Argentine Bonds Private Badlar + 275
bp due in 2015
    
    
    133,756
    
    
    
    Total in investment accounts
    
    Ps.
    133,756
    
    
    Ps.
    In special investment accounts:Argentine Central Bank Notes
    
    
    
    
    
    
    43,350Total in special investment accounts
    
    Ps.
    
    
    
    Ps.
    43,350For trading purposes:U.S. dollar-denominated National Government Bonds Libor
due in 2015
    
    
    8,303
    
    
    
    National Government Bonds in U.S. dollars due in 2012
    
    
    4,800
    
    
    
    U.S. dollar-denominated Argentine Bonds 7% due in
2011-BONAR V
    
    
    4,570
    
    
    
    5,174Peso-denominated Argentine Bonds Badlar Privada + 300
bp due in 2015
    
    
    13,404
    
    
    
    39,014Other Government Bonds
    
    
    25,023
    
    
    
    60,354Other
    
    
    12,131
    
    
    
    9,644Total trading purposes
    
    Ps.
    68,231
    
    
    Ps.
    114,186From repo transactions with the Argentine Central Bank:U.S. dollar-denominated National Government Bonds Libor
7% due in 2013
    
    
    
    
    
    
    152,650Total from repo transactions with the Argentine Central Bank
    
    Ps.
    
    
    
    Ps.
    152,650Without quotation:National Government Bonds in U.S. dollars due in 2012
    
    
    
    
    
    
    1,032,412Cordoba Province Governments Bonds
    
    
    
    
    
    
    3.833Peso-denominated Argentine Bonds Badlar Privada + 300
bp due in 2015
    
    
    
    
    
    
    323,744Discount Bonds due in 2033 and GDP-Linked Negotiable
Securities
    
    
    
    
    
    
    621,983Total Without quotation
    
    Ps.
    
    
    
    Ps.
    1,981,972Securities issued by the Argentine Central Bank:For Repo Transaction (*)
    
    
    180,232
    
    
    
    Securities with quotation (**)
    
    
    363,050
    
    
    
    651,050Securities without quotation (***)
    
    
    1,522,441
    
    
    
    964,028Total Securities issued by the Argentine Central Bank
    
    Ps.
    2,065,723
    
    
    Ps.
    1,615,078Total government securities
    
    Ps.
    2,267,710
    
    
    Ps.
    3,907,236Corporate Securities:Shares
    
    
    68
    
    
    
    53Marketable Negotiable obligations
    
    
    4,484
    
    
    
    5,613Negotiable Mutual Funds
    
    
    5,750
    
    
    
    7,505Total corporate securities
    
    Ps.
    10,302
    
    
    Ps.
    13,171Total government and corporate securities
    
    Ps.
    2,278,012
    
    
    Ps.
    3,920,407
  F-19




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##### Table of Contents



Grupo Financiero Galicia S.A. and Subsidiaries
 Notes to the Consolidated Financial Statements
For the years ended December 31, 2010, 2009 and 2008
 (*)
    
    The Securites for repo transactions correspond to Compañía Financiera Argentina S.A.(**)
    
    Includes Ps.266,635 of Compañía Financiera Argentina S.A.(***)
    
    Includes Ps.4,920 of Compañía Financiera Argentina S.A.
   6. Loans.
     Overdrafts short-term obligations drawn on by customers through overdrafts.
 Promissory Notes endorsed promissory notes, discounted and purchased bills and
factored loans.
 Mortgage loans loans to purchase or improve real estate and collateralized by such real
estate or commercial loans secured by real estate.
 Pledge loans loans where collateral is pledged as an integral part of the loan document.
 Credit card loans loans to credit card holders.
 Personal loans
 Others includes mainly short-term placements in foreign banks.
   F-20




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##### Table of Contents



Grupo Financiero Galicia S.A. and Subsidiaries
 Notes to the Consolidated Financial Statements
For the years ended December 31, 2010, 2009 and 2008
  December 31,2010
    
    
    2009Non-financial public sector
    
    Ps.
    24,565
    
    
    Ps.
    25,416Financial sector (Argentine)
    
    
    80,633
    
    
    
    25,352Non-financial private sector and residents abroad
    
    
    22,287,056
    
    
    
    14,233,579 With preferred guarantees
    
    
    1,257,111
    
    
    
    1,142,199 With other guarantees
    
    
    3,694,518
    
    
    
    2,450,075 Unsecured (*)
    
    
    17,335,427
    
    
    
    10,641,305Subtotal
    
    
    22,392,254
    
    
    
    14,284,347Allowance for loan losses (See Note 7)
    
    
    (1,038,473
    )
    
    
    (806,446
    )Total
    
    Ps.
    21,353,781
    
    
    Ps.
    13,477,901
 (*)
    
    As of December 31, 2010 includes Ps. 1,378,363 of Compañía Financiera Argentina S.A.
  December 31,2010
    
    
    2009Consumer
    
    
    54.68
    %
    
    
    47.54
    %Manufacturing
    
    
    13.47
    %
    
    
    14.61
    %Primary Products
    
    
    11.03
    %
    
    
    13.90
    %Wholesale Trade
    
    
    6.85
    %
    
    
    6.53
    %Services
    
    
    6.63
    %
    
    
    7.59
    %Retail Trade
    
    
    4.05
    %
    
    
    5.04
    %Financial Sector
    
    
    1.42
    %
    
    
    3.30
    %Construction
    
    
    1.42
    %
    
    
    1.24
    %
 7. Allowance for Loan Losses.
  December 31,2010
    
    
    2009
    
    
    2008Balance at beginning of year
    
    Ps.
    806,446
    
    
    Ps.
    526,801
    
    
    Ps.
    428,607Provision charged to income
    
    
    523,588
    
    
    
    625,897
    
    
    
    384,606Recoveries
    
    
    (8
    )
    
    
    (5,424
    )
    
    
    (6,510
    )Foreign exchange effect and other adjustments (*)
    
    
    195,776
    
    
    
    13,693
    
    
    
    9,289Loans charged off
    
    
    (487,329
    )
    
    
    (354,521
    )
    
    
    (289,191
    )Balance at end of year
    
    Ps.
    1,038,473
    
    
    Ps.
    806,446
    
    
    Ps.
    526,801
 (*)
    
    Includes Ps. 185,381 of allowances as of the acquisition date of Compañia Financiera Argentina S.A.
  F-21




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##### Table of Contents



Grupo Financiero Galicia S.A. and Subsidiaries
 Notes to the Consolidated Financial Statements
For the years ended December 31, 2010, 2009 and 2008
  December 31,2010
    
    
    2009
    
    
    2008Provisions charged to income
    
    Ps.
    523,588
    
    
    Ps.
    625,897
    
    
    Ps.
    384,606Direct charge-offs
    
    
    17,079
    
    
    
    10,501
    
    
    
    7,307Other receivable losses
    
    
    9,921
    
    
    
    3,051
    
    
    
    2,545Financial leases
    
    
    936
    
    
    
    56
    
    
    
    931Ps.
    551,524
    
    
    Ps.
    639,505
    
    
    Ps.
    395,389
  8. Other Receivables Resulting from Financial Brokerage.
  December 31,2010
    
    
    2009Preferred guarantees, including deposits withThe Argentine Central Bank
    
    Ps.
    420,328
    
    
    Ps.
    516,001Other guarantees
    
    
    604
    
    
    
    90,192Unsecured
    
    
    3,036,864
    
    
    
    2,759,744Less: Allowance for doubtful accounts
    
    
    (131,806
    )
    
    
    (30,570
    )Ps.
    3,325,990
    
    
    Ps.
    3,335,367
  December 31,2010
    
    
    2009Mutual funds
    
    Ps.
    147,009
    
    
    Ps.
    126,936Galtrust I
    
    
    620,501
    
    
    
    584,111Other financial trust participation certificates
    
    
    455,874
    
    
    
    941,542Accrued commissions
    
    
    38,418
    
    
    
    28,896Others
    
    
    537,511
    
    
    
    446,506Ps.
    1,799,313
    
    
    Ps.
    2,127,991
  F-22




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##### Table of Contents



Grupo Financiero Galicia S.A. and Subsidiaries
 Notes to the Consolidated Financial Statements
For the years ended December 31, 2010, 2009 and 2008
 9. Equity Investments.
  December 31,2010
    
    
    2009In Financial Institutions, complementary and
authorized activitiesBanelco S.A.
    
    Ps.
    9,569
    
    
    Ps.
    8,681Visa Argentina S.A.
    
    
    3,000
    
    
    
    3,169Mercado de Valores de Buenos Aires S.A.
    
    
    8,138
    
    
    
    8,143Banco Latinoamericano de Exportaciones S.A.
    
    
    1,971
    
    
    
    1,882Others
    
    
    790
    
    
    
    852Total equity investments in Financial Institutions,
complementary and authorized activities
    
    Ps.
    23,468
    
    
    Ps.
    22,727In Non-financial InstitutionsElectrigal S.A.
    
    
    5,455
    
    
    
    5,455A.E.C. S.A.
    
    
    26,703
    
    
    
    21,379Aguas Cordobesas S.A.
    
    
    8,911
    
    
    
    8,911Other
    
    
    1,574
    
    
    
    1,383Total equity investments in non-financial institutions
    
    Ps.
    42,643
    
    
    Ps.
    37,128Allowances
    
    Ps.
    (13,263
    )
    
    Ps.
    (5,960
    )Total Equity investments
    
    Ps.
    52,848
    
    
    Ps.
    53,895
 10. Bank Premises and Equipment and Intangible Assets.
  December 31,2010
    
    
    2009Land and buildings
    
    Ps.
    973,556
    
    
    Ps.
    927,100Furniture and fittings
    
    
    227,155
    
    
    
    197,563Machinery and equipment
    
    
    423,111
    
    
    
    345,273Vehicles
    
    
    8,528
    
    
    
    2,592Others
    
    
    4,444
    
    
    
    4,671Accumulated depreciation
    
    
    (688,727
    )
    
    
    (578,878
    )Ps.
    948,067
    
    
    Ps.
    898,321
   F-23




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##### Table of Contents



Grupo Financiero Galicia S.A. and Subsidiaries
 Notes to the Consolidated Financial Statements
For the years ended December 31, 2010, 2009 and 2008
  December 31,2010
    
    
    2009Goodwill, net of accumulated
amortization of Ps.98,767 and
Ps.87,700, respectively
    
    Ps.
    23,467
    
    
    Ps.
    26,346Organization and development
expenses, net of accumulated
amortization of Ps.336,276 and
Ps.202,214, respectively
    
    
    430,648
    
    
    
    286,925Legal actions related to the
payment of deposits (amparo
claims), net of accumulated
amortization of Ps.859,638 and
Ps.578,692, respectively (see Note
2.10)
    
    
    
    
    
    
    259,053Ps.
    454,115
    
    
    Ps.
    572,324
    December 31,2010
    
    
    2009Banking
    
    
    19,903
    
    
    
    26,346Data Processing
    
    
    3,564
    
    
    
    Ps.
    23,467
    
    
    Ps.
    26,346
 11. Miscellaneous Assets.
  December 31,2010
    
    
    2009Construction in progress
    
    Ps.
    5,423
    
    
    Ps.
    1,370Deposits on fixed asset purchases
    
    
    2,848
    
    
    
    831Stationery and supplies
    
    
    12,254
    
    
    
    15,363Real estate held for sale
    
    
    3,584
    
    
    
    5,561Assets under leasing agreements
    
    
    19,157
    
    
    
    19,503Others
    
    
    38,137
    
    
    
    21,213Ps.
    81,403
    
    
    Ps.
    63,841
  F-24




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##### Table of Contents



Grupo Financiero Galicia S.A. and Subsidiaries
 Notes to the Consolidated Financial Statements
For the years ended December 31, 2010, 2009 and 2008
 12. Allowances and Provisions.
  December 31,2010
    
    
    2009Allowances against asset accounts:Other receivables resulting from financial brokerage, for collection risk (a)
    
    
    131,806
    
    
    
    30,570Assets under financial leases (a)
    
    
    5,469
    
    
    
    6,070Equity investments in other companies (b)
    
    
    13,263
    
    
    
    5,960Miscellaneous receivables, for collection risk (a)
    
    
    26,025
    
    
    
    28,655Reserves for contingencies:For severance payments (c)
    
    
    12,139
    
    
    
    5,892Litigations (d)
    
    
    84,051
    
    
    
    57,042Other contingencies (e)
    
    
    89,802
    
    
    
    148,352Sundry liabilities arising from credit card activities (f)
    
    
    46,493
    
    
    
    44,493Other commitments (g)
    
    
    125
    
    
    
    143Negative Goodwill (h)
    
    
    465,634
    
    
    
    Total reserves for contingencies
    
    Ps.
    698,244
    
    
    Ps.
    255,922
 (a)
    
    Based upon an assessment of debtors performance, the economic and financial situation and the
guarantees collateralizing their respective transactions. Includes Ps.98,638 of valuation
allowances to adjust certificates of participation held in Galtrust I to its fair value.(b)
    
    Includes the estimated losses due to the excess of the cost plus dividend method over the
equity method in non-majority owned equity investments.(c)
    
    Estimated amounts payable under labor lawsuits filed against the Bank by former employees.(d)
    
    Litigation arising from different types of claims from customers (e.g., claims for thefts from
safe deposit boxes, the cashing of checks that have been fraudulently altered, discrepancies in
deposits and payments services that the Bank renders, etc).(e)
    
    At the date of these consolidated financial statements, there are several review and assessment
processes ongoing, at different progress stages, initiated by the provincial and Autonomous City of
Buenos Aires Tax Authorities related to the turnover tax, mainly corresponding to fiscal year
2002, and basically in connection with the Compensatory Bond set forth by the National Government
in order to compensate financial institutions for the losses resulting from the asymmetric
pesification of loans and deposits.
    F-25




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##### Table of Contents



Grupo Financiero Galicia S.A. and Subsidiaries
 Notes to the Consolidated Financial Statements
For the years ended December 31, 2010, 2009 and 2008
  (f)
    
    Reserves for a guarantee of credit-cards receivable and for the estimated liability for the
insurance of the payment of credit-cards balance in the event of the death of the credit-card
holders.
    (g)
    
    Represents contingent commitments in connection with customers classified in categories other
than the normal categories under Argentine Banking GAAP.(h)
    
    The Board of Directors of the Argentine Central Bank through Resolution No. 124 dated June 7,
2010, authorized the acquisition of 95% of stocks of Compañía Financiera Argentina S.A., Cobranzas
y Servicios S.A. and Procesadora Regional S.A. Also, said Resolution authorized subsidiary company
Tarjetas Regionales S.A. to acquire the remaining 5% of said companies stocks.
      F-26




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##### Table of Contents



Grupo Financiero Galicia S.A. and Subsidiaries
 Notes to the Consolidated Financial Statements
For the years ended December 31, 2010, 2009 and 2008
 13.
    
    Other Liabilities Resulting from Financial Brokerage- Banks and International Entities, and
Loans from Domestic Financial Institutions
  December 31,2010
    
    
    2009DescriptionBank and International EntitiesContractual long-term LiabilitiesFloating Rate Bank Loans 2010
    
    Ps.
    
    
    
    Ps.
    2,024Floating Rate Bank Loans 2014
    
    
    
    
    
    
    94,902Floating Rate Bank Loans 2019
    
    
    8,232
    
    
    
    7,364Internacional Finance Corp. (I.F.C.)
    
    
    229,540
    
    
    
    260,771Total long-term liabilities
    
    Ps.
    237,772
    
    
    Ps.
    365,061Contractual short-term liabilities:Other lines from foreign banks
    
    
    408,973
    
    
    
    179,961Total short-term liabilities
    
    Ps.
    408,973
    
    
    Ps.
    179,961Total Banks and International Entities
    
    Ps.
    646,745
    
    
    Ps.
    545,022Domestic and Financial InstitutionsContractual long-term liabilities:BICE (Banco de Inversión y Comercio Exterior)
    
    
    23,709
    
    
    
    Other lines from domestic banks
    
    
    434,064
    
    
    
    164,612Total long-term liabilities
    
    Ps.
    457,773
    
    
    Ps.
    164,612Contractual short-term liabilities:Other lines from credit from domestic banks
    
    
    155,424
    
    
    
    86,869Total short-term liabilities
    
    Ps.
    155,424
    
    
    Ps.
    86,869Total Domestic and Financial Institutions
    
    Ps.
    613,197
    
    
    Ps.
    251,481TOTAL
    
    Ps.
    1,259,942
    
    
    Ps.
    796,503
    F-27




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##### Table of Contents



Grupo Financiero Galicia S.A. and Subsidiaries
 Notes to the Consolidated Financial Statements
For the years ended December 31, 2010, 2009 and 2008
  Contractual long-term Liabilities2011
    
    
    241,2012012
    
    
    286,2372013
    
    
    111,3342014
    
    
    30,1372015
    
    
    18,405Thereafter
    
    
    8,231Ps.
    695,545
 14. Other Liabilities Resulting from Financial Brokerage  Negotiable Obligations
  Annual
    
    
    As of December 31,Maturity
    
    
    Interest Rate
    
    
    2010
    
    
    2009Negotiable Obligations (1)Long-term liabilities:9% Notes Due 2003
    
    
    2003
    
    
    
    9,00
    %
    
    
    6,652
    
    
    
    6,352(Semi-annual interest, principal payable
at maturity)Banco Galicia- Due 2010-Libor + 350 PB
    
    
    2010
    
    
    
    0,00
    %
    
    
    
    
    
    
    129,858(Semi-annual interest)Banco Galicia- Due 2014
    
    
    2014
    
    
    
    7,00
    %
    
    
    
    
    
    
    736,542(Semi-annual interest)Banco Galicia- Subordinated Due 2019
    
    
    2019
    
    
    
    11,00
    %
    
    
    1,253,027
    
    
    
    1,137,447(Semi-annual interest, principal payable
at maturity)Tarjetas Naranja S.A. Class IV
    
    
    2011
    
    
    
    15,50
    %
    
    
    77,064
    
    
    
    156,794(Interest fixed,semi-annual interest -
principal payable every six months)Tarjetas Cuyanas S.A. S. XVIII
    
    
    2012
    
    
    
    12,00
    %
    
    
    39,164
    
    
    
    79,506(Interest fixed,semi-annual interest -
principal payable every six months)Tarjetas Cuyanas S.A. S. XX
    
    
    2010
    
    
    
    
    
    
    
    
    
    
    
    75,934(Issued at a discounted base, principal
payable at maturity)Tarjetas Cuyanas S.A. Class III
    
    
    2011
    
    
    
    6,00
    %
    
    
    79,841
    
    
    
    (Issued at a discounted base, principal
payable at maturity)Tarjetas Naranja S.A. Class IX Serie I
    
    
    2010
    
    
    
    
    
    
    
    
    
    
    
    133,296(Issued at a discounted base, principal
payable at maturity)Tarjetas Naranja S.A. Class IX Serie II
    
    
    2011
    
    
    
    12,50
    %
    
    
    59,038
    
    
    
    55,416(Interest fixed,semi-annual interest,
principal payable at maturity)
  F-28




---



##### Table of Contents



Annual
    
    
    As of December 31,Maturity
    
    
    Interest Rate
    
    
    2010
    
    
    2009Tarjetas Naranja S.A. Class XII
    
    
    2011
    
    
    
    6,10
    %
    
    
    139,214
    
    
    
    (Interest fixed,quarterly interest,
principal payable at maturity)Grupo Financiero Galicia Class I Serie II
    
    
    2011
    
    
    
    12,50
    %
    
    
    42,128
    
    
    
    40,263(Interest fixed,semi-annual interest,
principal payable at maturity)Grupo Financiero Galicia Class II Serie II
    
    
    2012
    
    
    
    8,00
    %
    
    
    70,546
    
    
    
    (Interest fixed,semi-annual interest,
principal payable at maturity)Grupo Financiero Galicia Class II Serie III
    
    
    2013
    
    
    
    9,00
    %
    
    
    106,782
    
    
    
    (Interest fixed,semi-annual interest,
principal payable at maturity)Total
    
    
    Ps.
    
    
    
    
    
    
    
    1,873,456
    
    
    
    2,551,408
 Annual
    
    
    As of December 31,Maturity
    
    
    Interest Rate
    
    
    2010
    
    
    2009Short-term liabilities:Tarjeta Naranja Class X
    
    
    2011
    
    
    Badlar + 275 bp
    
    
    48,177
    
    
    
    (Quarterly interest, principal
payable at maturity)Tarjeta Naranja Class XI
    
    
    2011
    
    
    Badlar + 295 bp
    
    
    40,919
    
    
    
    (Quarterly interest, principal
payable at maturity)Tarjetas Cuyanas S.A. Class I
    
    
    2011
    
    
    Badlar + 300 bp
    
    
    28,854
    
    
    
    (Quarterly interest, principal
payable at maturity)Tarjetas Cuyanas S.A. Class II
    
    
    2011
    
    
    
    9,95
    %
    
    
    37,484
    
    
    
    (Quarterly interest, principal
payable at maturity)Grupo Financiero Galicia Serie I
    
    
    2010
    
    
    
    
    
    
    
    
    
    
    
    125,793(Issued at a discounted base,
principal payable at maturity)Total
    
    
    Ps.
    
    
    
    
    
    
    
    155,434
    
    
    
    125,793Total Negotiable Obligations
    
    
    Ps.
    
    
    
    
    
    
    
    2,028,890
    
    
    
    2,677,201
 (1)
    
    Only principal, except for Subordinated Obligations which include accrued interest for Ps.64,234 .
   F-29




---



##### Table of Contents



Grupo Financiero Galicia S.A. and Subsidiaries
 Notes to the Consolidated Financial Statements
For the years ended December 31, 2010, 2009 and 2008
   Maturity Long TermPast Due (*)
    
    
    6,6522011
    
    
    427,7422012
    
    
    79,2532013
    
    
    106,7822014
    
    
    2015
    
    
    Thereafter
    
    
    1,253,0271,873,456
 (*)
    
    Corresponds to past due debt not yet restructured.
 15. Balances in Foreign Currency.
  December 31,2010
    
    
    2009Assets:Cash and due from banks
    
    Ps.
    3,131,530
    
    
    Ps.
    1,867,910Government and corporate securities
    
    
    40,169
    
    
    
    1,215,571Loans
    
    
    3,103,434
    
    
    
    2,395,667Other receivables resulting from financial brokerage
    
    
    426,779
    
    
    
    899,804Assets under financial leases
    
    
    28,018
    
    
    
    29,147Equity investments in other companies
    
    
    2,046
    
    
    
    1,939Miscellaneous receivables
    
    
    45,879
    
    
    
    462,434Bank premises and equipment
    
    
    419
    
    
    
    738Miscellaneous assets
    
    
    40
    
    
    
    38Intangible assets
    
    
    
    
    
    
    569Unallocated items
    
    
    45
    
    
    
    12,572Other assets
    
    
    6
    
    
    
    70Total
    
    Ps.
    6,778,365
    
    
    Ps.
    6,886,459Liabilities:Deposits
    
    Ps.
    4,017,664
    
    
    Ps.
    3,094,442Other liabilities resulting from financial brokerage
    
    
    2,344,487
    
    
    
    2,827,321Miscellaneous liabilities
    
    
    19,233
    
    
    
    11,951Subordinated Negotiable Obligations
    
    
    1,253,027
    
    
    
    1,137,447Provisions
    
    
    13,868
    
    
    
    11,493Unallocated items
    
    
    472
    
    
    
    3,078Other Liabilities
    
    
    101
    
    
    
    86Total
    
    Ps.
    7,648,852
    
    
    Ps.
    7,085,818
   F-30




---



##### Table of Contents



Grupo Financiero Galicia S.A. and Subsidiaries
 Notes to the Consolidated Financial Statements
For the years ended December 31, 2010, 2009 and 2008
 16. Transactions with Related Parties
   17. Breakdown of Captions Included in the Income Statement.
 December 31,2010
    
    
    2009
    
    
    2008Financial IncomeInterest on other receivables resulting from
financial brokerage:Interest on purchased certificates of deposits
    
    
    11,684
    
    
    
    14,914
    
    
    
    6,033Additional interest on current accounts and
special accounts with the Argentine Central
Bank
    
    
    
    
    
    
    
    
    
    
    12,241Advance payment-Leasing
    
    
    1,968
    
    
    
    2,928
    
    
    
    12,332Other
    
    
    1,786
    
    
    
    5,413
    
    
    
    3,388Ps.
    15,438
    
    
    Ps.
    23,255
    
    
    Ps.
    33,994OtherPremiums on forward purchases of Government
securities under repos
    
    
    29,584
    
    
    
    16,114
    
    
    
    7,013Interest on pre-export and export financing
    
    
    73,298
    
    
    
    94,517
    
    
    
    69,238Result from other credits by financial brokerage
    
    
    4,543
    
    
    
    60,550
    
    
    
    11,076Net position of valuation public sector loans
    
    
    
    
    
    
    4,106
    
    
    
    9,157Net position of forward transactions in pesos
    
    
    
    
    
    
    27
    
    
    
    95,433Other
    
    
    223
    
    
    
    
    
    
    
    5Ps.
    107,648
    
    
    Ps.
    175,314
    
    
    Ps.
    191,922Financial ExpensesInterest on other liabilities resulting from
financial brokerage:Interest on negotiable obligations
    
    
    92,980
    
    
    
    157,970
    
    
    
    187,320Interest on other liabilities resulting from
financial brokerage from other banks and
international entities
    
    
    72,624
    
    
    
    74,002
    
    
    
    109,706Ps.
    165,604
    
    
    Ps.
    231,972
    
    
    Ps.
    297,026Other interestInterest for other deposits
    
    
    3,702
    
    
    
    2,860
    
    
    
    3,301Other
    
    
    2,665
    
    
    
    22
    
    
    
    12Ps.
    6,367
    
    
    Ps.
    2,882
    
    
    Ps.
    3,313
  F-31




---



##### Table of Contents



Grupo Financiero Galicia S.A. and Subsidiaries
 Notes to the Consolidated Financial Statements
For the years ended December 31, 2010, 2009 and 2008
 December 31,2010
    
    
    2009
    
    
    2008OtherPremiums on repo transactions
    
    
    13,169
    
    
    
    33,780
    
    
    
    84,823Contributions and taxes on financial income
    
    
    236,792
    
    
    
    135,644
    
    
    
    112,373Net position of forward transactions in pesos
    
    
    48,630
    
    
    
    24,068
    
    
    
    Other
    
    
    627
    
    
    
    375
    
    
    
    Ps.
    299,218
    
    
    Ps.
    193,867
    
    
    Ps.
    197,196Income from servicesOtherCommissions on credit cards
    
    
    1,127,881
    
    
    
    781,367
    
    
    
    652,040Safety rental
    
    
    51,248
    
    
    
    30,221
    
    
    
    18,003Insurance premiums
    
    
    337
    
    
    
    12,671
    
    
    
    58,901Other
    
    
    89,020
    
    
    
    78,644
    
    
    
    70,856Ps.
    1,268,486
    
    
    Ps.
    902,903
    
    
    Ps.
    799,800Expenses for servicesOtherGross revenue taxes
    
    
    131,260
    
    
    
    91,016
    
    
    
    74,339Linked with credit cards
    
    
    295,150
    
    
    
    212,427
    
    
    
    130,813Other
    
    
    14,946
    
    
    
    14,706
    
    
    
    14,348Ps.
    441,356
    
    
    Ps.
    318,149
    
    
    Ps.
    219,500Administrative expensesOther operating expensesRentals
    
    
    85,551
    
    
    
    62,234
    
    
    
    51,292Electricity and communications
    
    
    106,439
    
    
    
    85,850
    
    
    
    72,712Maintenance and repair expenses
    
    
    67,274
    
    
    
    52,134
    
    
    
    43,841Security Services
    
    
    75,707
    
    
    
    50,282
    
    
    
    42,255Other operating expenses
    
    
    38,670
    
    
    
    29,604
    
    
    
    39,119Ps.
    373,641
    
    
    Ps.
    280,104
    
    
    Ps.
    249,219Miscellaneous incomeOtherInterest on miscellaneous receivables
    
    
    25,375
    
    
    
    31,076
    
    
    
    39,382Premiums and commissions from insurance business
    
    
    388,486
    
    
    
    333,669
    
    
    
    276,019Waiver for repayment of debt
    
    
    
    
    
    
    85,550
    
    
    
    Other
    
    
    60,401
    
    
    
    52,051
    
    
    
    18,245Ps.
    474,262

    
    
    Ps.
    502,346
    
    
    Ps.
    333,646Miscellaneous lossesOtherClaims
    
    
    3,412
    
    
    
    2,561
    
    
    
    1,821Commissions and expenses on insurance business
    
    
    136,228
    
    
    
    93,686
    
    
    
    119,045Other
    
    
    28,192
    
    
    
    26,921
    
    
    
    17,918Ps.
    167,832
    
    
    Ps.
    123,168
    
    
    Ps.
    138,784
  F-32




---



##### Table of Contents



Grupo Financiero Galicia S.A. and Subsidiaries
 Notes to the Consolidated Financial Statements
For the years ended December 31, 2010, 2009 and 2008
 18. Income Taxes.
   19. Shareholders Equity and Restrictions Imposed on the Distribution of Dividends.
           F-33




---



##### Table of Contents



Grupo Financiero Galicia S.A. and Subsidiaries
 Notes to the Consolidated Financial Statements
For the years ended December 31, 2010, 2009 and 2008
  20. Minimum Capital.
     Computable Capital asa % of MinimumMinimum Capital
    
    
    Computable Capital
    
    
    CapitalDecember 31, 2010
    
    Ps.
    2,007,081
    
    
    Ps.
    3,593,930
    
    
    
    179,06December 31, 2009
    
    Ps.
    1,611,504
    
    
    Ps.
    2,789,198
    
    
    
    173,08
 21. Earnings per Share.
    22. Contribution to the Deposit Insurance System.
     F-34




---



##### Table of Contents



Grupo Financiero Galicia S.A. and Subsidiaries
 Notes to the Consolidated Financial Statements
For the years ended December 31, 2010, 2009 and 2008
    23. Statements of Income and Balance Sheets.
  December 31,2010
    
    
    2009
    
    
    2008Interest income:Interest and fees on loans (*)
    
    Ps.
    3,174,796
    
    
    Ps.
    2,278,655
    
    
    Ps.
    2,099,393Interest and dividends on investment securities:Non taxable interest income
    
    
    21,263
    
    
    
    270,353
    
    
    
    76,912Interest on interest bearing deposits with
other banks
    
    
    746
    
    
    
    638
    
    
    
    8,765Interest on other receivables from financial
brokerage
    
    
    135,620
    
    
    
    90,186
    
    
    
    163,420Trading account interest, net
    
    
    318,121
    
    
    
    284,837
    
    
    
    71,515Total interest income
    
    
    3,650,546
    
    
    
    2,924,669
    
    
    
    2,420,005Interest expenseInterest on deposits
    
    
    766,710
    
    
    
    880,775
    
    
    
    794,037Interest on securities sold under agreements to
repurchase
    
    
    13,169
    
    
    
    33,780
    
    
    
    84,823Interest on short-term liabilities from
financial intermediation
    
    
    77,350
    
    
    
    67,283
    
    
    
    82,667Interest on long-term liabilities from
financial intermediation (*)
    
    
    235,985
    
    
    
    233,477
    
    
    
    316,141Total interest expense
    
    
    1,093,214
    
    
    
    1,215,315
    
    
    
    1,277,668Net interest income
    
    
    2,557,332
    
    
    
    1,709,354
    
    
    
    1,142,337Provision for loan losses, net of reversals
    
    
    445,833
    
    
    
    595,713
    
    
    
    313,188Net interest income after provision for loan
losses
    
    
    2,111,499
    
    
    
    1,113,641
    
    
    
    829,149
 (*)
    
    Includes CER/CVS adjustments.
  F-35




---



##### Table of Contents



Grupo Financiero Galicia S.A. and Subsidiaries
 Notes to the Consolidated Financial Statements
For the years ended December 31, 2010, 2009 and 2008
 December 31,2010
    
    
    2009
    
    
    2008Non-interest income:Service charges on deposit accounts
    
    Ps.
    323,328
    
    
    Ps.
    253,299
    
    
    Ps.
    201,653Credit-card service charges and fees
    
    
    981,215
    
    
    
    704,025
    
    
    
    548,629Other commissions
    
    
    1,188,063
    
    
    
    882,084
    
    
    
    897,715Income from equity in other companies
    
    
    62,054
    
    
    
    11,347
    
    
    
    56,764Premiums and commissions on insurance business
    
    
    388,486
    
    
    
    333,669
    
    
    
    276,019Other
    
    
    127,723
    
    
    
    195,426
    
    
    
    139,949Total non-interest income
    
    Ps.
    3,070,869
    
    
    Ps.
    2,379,850
    
    
    Ps.
    2,120,729Non-interest expense:Commissions
    
    
    601,797
    
    
    
    424,847
    
    
    
    309,808Salaries and social security charges
    
    
    1,407,961
    
    
    
    975,767
    
    
    
    805,197Fees and external administrative services
    
    
    268,235
    
    
    
    183,730
    
    
    
    161,192Depreciation of bank premises and equipment
    
    
    76,899
    
    
    
    73,904
    
    
    
    61,910Personnel services
    
    
    89,345
    
    
    
    76,760
    
    
    
    90,791Rentals
    
    
    85,551
    
    
    
    62,234
    
    
    
    51,292Electricity and communications
    
    
    106,439
    
    
    
    85,850
    
    
    
    72,712Advertising and publicity
    
    
    189,596
    
    
    
    127,836
    
    
    
    146,496Taxes
    
    
    608,485
    
    
    
    406,161
    
    
    
    324,475Amortization of organization and development
expenses
    
    
    63,132
    
    
    
    45,908
    
    
    
    37,950Maintenance and repair expenses
    
    
    67,274
    
    
    
    52,134
    
    
    
    43,841Commissions and expenses on insurance business
    
    
    136,228
    
    
    
    93,686
    
    
    
    119,045Amortization of Amparo claims
    
    
    280,946
    
    
    
    109,310
    
    
    
    39,545Other Provisions and reserves
    
    
    102,387
    
    
    
    109,296
    
    
    
    161,703Other
    
    
    326,668
    
    
    
    234,289
    
    
    
    237,276Total non-interest expense
    
    Ps.
    4,410,943
    
    
    Ps.
    3,061,712
    
    
    Ps.
    2,663,233Income before tax expense
    
    
    771,425
    
    
    
    431,779
    
    
    
    286,645Income tax expense
    
    
    258,191
    
    
    
    155,992
    
    
    
    74,014Net Income
    
    Ps.
    513,234
    
    
    Ps.
    275,787
    
    
    Ps.
    212,631Less: Net Income attributable to
non-controlling interest
    
    
    104,333
    
    
    
    46,512
    
    
    
    35,812Net Income attributable to Controlling interest
    
    Ps.
    408,901
    
    
    Ps.
    229,275
    
    
    Ps.
    176,819Net income per Ordinary Share in Argentine
Pesos
    
    
    0.329
    
    
    
    0.185
    
    
    
    0.142
  F-36




---



##### Table of Contents



Grupo Financiero Galicia S.A. and Subsidiaries
 Notes to the Consolidated Financial Statements
For the years ended December 31, 2010, 2009 and 2008
  December 31,2010
    
    
    2009Assets:Cash and due from banks
    
    Ps.
    5,657,730
    
    
    Ps.
    3,713,335Interest-bearing deposits in other banks
    
    
    215,282
    
    
    
    440,745Federal funds sold and securities purchased under
resale agreements or similar agreements
    
    
    240,811
    
    
    
    178,474Trading account assets
    
    
    2,706,167
    
    
    
    2,011,860Investment securities
    
    
    2,297,543
    
    
    
    4,471,928Loans
    
    
    21,861,678
    
    
    
    14,368,457Allowances for loan losses
    
    
    (1,038,473
    )
    
    
    (812,354
    )Miscellaneous receivables
    
    
    823,602
    
    
    
    619,944Bank Premises and Equipment
    
    
    948,067
    
    
    
    898,321Intangible Assets
    
    
    454,115
    
    
    
    572,234Other assets
    
    
    1,945,243
    
    
    
    1,540,164Total assets
    
    Ps.
    36,111,765
    
    
    Ps.
    28,003,108Liabilities and Shareholders Equity:Deposits
    
    Ps.
    22,115,956
    
    
    Ps.
    16,917,453Short-term borrowing
    
    
    719,831
    
    
    
    392,623Other liabilities
    
    
    273,792
    
    
    
    313,526Amounts payable for spot and forward purchases to
be settled
    
    
    950,453
    
    
    
    618,375Other liabilities resulting from financial brokerage
    
    
    5,022,761
    
    
    
    3,489,899Long-term debt
    
    
    2,569,001
    
    
    
    3,081,081Miscellaneous Liabilities
    
    
    909,632
    
    
    
    578,699Contingent liabilities
    
    
    698,244
    
    
    
    255,922Total Liabilities
    
    
    33,259,670
    
    
    
    25,647,578Common Stock
    
    
    1,241,407
    
    
    
    1,241,407Other stockholders equity
    
    
    1,228,093
    
    
    
    811,132Non-controlling Interest
    
    
    382,595
    
    
    
    302,991Total Shareholders Equity
    
    
    2,852,095
    
    
    
    2,355,530Total Liabilities and Equity
    
    Ps.
    36,111,765
    
    
    Ps.
    28,003,108
  F-37




---



##### Table of Contents



Grupo Financiero Galicia S.A. and Subsidiaries
 Notes to the Consolidated Financial Statements
For the years ended December 31, 2010, 2009 and 2008
  December 31, 2010
    
    
    December 31, 2009Unrealized
    
    
    
    
    
    
    
    
    
    
    UnrealizedCarrying value
    
    
    Gains
    
    
    Losses
    
    
    Market value
    
    
    Carrying value
    
    
    Gains
    
    
    Losses
    
    
    Market valueBonar 2015 Bonds
Investments
    
    
    642,147
    
    
    
    198,693
    
    
    
    
    
    
    
    726,643
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Boden 2012 Bonds 
Compensatory Bond
and Hedge Bond
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    1,906,907
    
    
    
    830,119
    
    
    
    
    
    
    
    1,731,089GalTrust I
    
    
    783,761
    
    
    
    566,115
    
    
    
    
    
    
    
    783,761
    
    
    
    584,111
    
    
    
    193,651
    
    
    
    
    
    
    
    211,647Discount Bonds
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    598,601
    
    
    
    132,209
    
    
    
    
    
    
    
    302,124Bonar 2015 Bonds
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    323,744
    
    
    
    85,032
    
    
    
    
    
    
    
    641,340Other assets
    
    
    871,635
    
    
    
    
    
    
    
    (3,167
    )
    
    
    874,459
    
    
    
    1,058,565
    
    
    
    88,347
    
    
    
    (5,018
    )
    
    
    1,030,678TOTAL
    
    Ps.
    2,297,543
    
    
    Ps.
    764,808
    
    
    Ps.
    (3,167
    )
    
    Ps.
    2,384,863
    
    
    Ps.
    4,471,928
    
    
    Ps.
    1,329,358
    
    
    Ps.
    (5,018
    )
    
    Ps.
    3,916,878
   December 31, 2010MaturingMaturing
    
    
    afterMaturing
    
    
    after 1 year
    
    
    5 years but
    
    
    MaturingCarrying
    
    
    within
    
    
    but within 5
    
    
    within 10
    
    
    afterValue
    
    
    1 year
    
    
    years
    
    
    years
    
    
    10 yearsGaltrust I
    
    
    783,761
    
    
    
    80,615
    
    
    
    416,065
    
    
    
    287,081
    
    
    
    Bonar 2015 Bonds Investments
    
    
    642,147
    
    
    
    
    
    
    
    642,147
    
    
    
    
    
    
    
    Other assets
    
    
    871,635
    
    
    
    485,464
    
    
    
    362,737
    
    
    
    23,434
    
    
    
    TOTAL
    
    Ps.
    2,297,543
    
    
    
    566,079
    
    
    
    1,420,949
    
    
    
    310,515
    
    
    
    
  Year ended December 31,
    
    2010
    
    
    2009
    
    
    2008Proceeds from sales
    
    
    2,376,489
    
    
    
    
    
    
    
    36,548Gross realized gains
    
    
    971,680
    
    
    
    
    
    
    
    2,090Gross realized losses
    
    
    
    
    
    
    
    
    
    
    Net unrealized gains
    
    
    408,981
    
    
    
    1,312,212
    
    
    
    9,915Losses reclasiffied out of OCI
    
    
    
    
    
    
    
    
    
    
    (156,237
    )
 24. Operations by Geographical Segment.
   F-38




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##### Table of Contents



Grupo Financiero Galicia S.A. and Subsidiaries
 Notes to the Consolidated Financial Statements
For the years ended December 31, 2010, 2009 and 2008
 December 31,2010
    
    
    2009
    
    
    2008Total revenues:(*)Republic of Argentina
    
    Ps.
    6,868,807
    
    
    Ps.
    5,417,227
    
    
    Ps.
    4,582,947Republic of Uruguay
    
    
    8,195
    
    
    
    14,489
    
    
    
    47,411Grand Cayman Island
    
    
    940
    
    
    
    65
    
    
    
    Net income (loss), net of
monetary effects allocable
to each country:Republic of Argentina
    
    
    418,066
    
    
    
    238,740
    
    
    
    166,368Republic of Uruguay
    
    
    (8,647
    )
    
    
    (7,274
    )
    
    
    10,451Grand Cayman Island
    
    
    (518
    )
    
    
    (2,191
    )
    
    
    Total assets:Republic of Argentina
    
    
    35,538,519
    
    
    
    27,350,754
    
    
    
    24,349,404Republic of Uruguay
    
    
    167,749
    
    
    
    237,544
    
    
    
    386,386Grand Cayman Island
    
    
    1,795
    
    
    
    14,068
    
    
    
    Bank Premises and EquipmentRepublic of Argentina
    
    
    947,648
    
    
    
    897,583
    
    
    
    866,179Republic of Uruguay
    
    
    419
    
    
    
    738
    
    
    
    5,090Miscellaneous assetsRepublic of Argentina
    
    
    81,363
    
    
    
    63,803
    
    
    
    78,326Republic of Uruguay
    
    
    40
    
    
    
    38
    
    
    
    297GoodwillRepublic of Argentina
    
    
    23,467
    
    
    
    26,346
    
    
    
    37,804Other intangible assetsRepublic of Argentina
    
    
    430,648
    
    
    
    545,409
    
    
    
    528,115Republic of Uruguay
    
    
    
    
    
    
    569
    
    
    
    1,060Geographical segment
assets as a percentage of
total assetsRepublic of Argentina
    
    
    99.53
    %
    
    
    99.09
    %
    
    
    98.44
    %Republic of Uruguay
    
    
    0.47
    %
    
    
    0.86
    %
    
    
    1.56
    %Grand Cayman Island
    
    
    
    
    
    
    0.05
    %
    
    
    
 (*)
    
    The caption Revenues include financial income, income from services and miscellaneous income.
  F-39




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##### Table of Contents



Grupo Financiero Galicia S.A. and Subsidiaries
 Notes to the Consolidated Financial Statements
For the years ended December 31, 2010, 2009 and 2008
 25. Financial Instruments with Off-Balance Sheet Risk.
     December 31,2010
    
    
    2009Commitments to extend credit
    
    Ps.
    1,840,214
    
    
    Ps.
    1,323,498Standby letters of credit
    
    
    335,761
    
    
    
    175,525Guarantees granted
    
    
    213,830
    
    
    
    194,474Acceptances
    
    
    111,744
    
    
    
    58,904
     December 31,2010
    
    
    2009Preferred counter-guarantees
    
    Ps.
    15,503
    
    
    Ps.
    15,353Other counter-guarantees
    
    
    48,640
    
    
    
    33,344
  F-40




---



##### Table of Contents



Grupo Financiero Galicia S.A. and Subsidiaries
 Notes to the Consolidated Financial Statements
For the years ended December 31, 2010, 2009 and 2008
  December 31,2010
    
    
    2009Checks drawn on the Bank
    
    Ps.
    419,405
    
    
    Ps.
    378,631Checks drawn on the other Bank
    
    
    529,215
    
    
    
    458,411Bills and other items for collection
    
    
    3,575,900
    
    
    
    2,262,278
    2011
    
    
    50,4002012
    
    
    61,4882013
    
    
    71,9412014
    
    
    80,5742015
    
    
    88,6312016 and After
    
    
    95,722Total
    
    Ps.
    448,756
 26. Derivative Financial Instruments.
   F-41




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##### Table of Contents



Grupo Financiero Galicia S.A. and Subsidiaries
 Notes to the Consolidated Financial Statements
For the years ended December 31, 2010, 2009 and 2008
  Net Book
    
    
    Net BookValue as
    
    
    Value asNotional
    
    
    of
    
    
    ofAverage
    
    
    Amount as
    
    
    December
    
    
    December
    
    
    Fair Value
    
    
    Fair ValueWeighted
    
    
    of
    
    
    31, 2010
    
    
    31, 2009
    
    
    as of
    
    
    as ofMaturity
    
    
    December
    
    
    Asset /
    
    
    Asset /
    
    
    December
    
    
    DecemberType of Contract
    
    Underlying
    
    
    Term
    
    
    31, 2010
    
    
    (Liability)
    
    
    (Liability)
    
    
    31, 2010
    
    
    31, 2009FORWARDS (a) Purchases
    
    Foreign currency
    
    2 months
    
    
    3,341,808
    
    
    
    (3,163
    )
    
    
    
    
    
    
    (3,163
    )
    
    
     Sales
    
    Foreign currency
    
    1 months
    
    
    2,393,976
    
    
    
    1,932
    
    
    
    
    
    
    
    1,932
    
    
    
    FUTURES (a) Purchases
    
    Interest Rate
    
    6 months
    
    
    1,140,100
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
     Sales
    
    Interest Rate
    
    4 months
    
    
    780,100
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    FORWARDS  CLIENTS (b) Purchases
    
    Foreign currency
    
    1 months
    
    
    23,598
    
    
    
    (92
    )
    
    
    
    
    
    
    (92
    )
    
    
     Sales
    
    Foreign currency
    
    6 months
    
    
    117,698
    
    
    
    3,471
    
    
    
    1,040
    
    
    
    3,471
    
    
    
    1,040FORWARD FOREIGN CURRENCY HEDGE
CONTRACT (c) Purchases
    
    Foreign currency
    
    4 months
    
    
    
    
    
    
    
    
    
    
    (8,060
    )
    
    
    
    
    
    
    (8,060
    ) Purchases
    
    Foreign currency
    
    3 months
    
    
    10,000
    
    
    
    (2,710
    )
    
    
    
    
    
    
    (2,710
    )
    
    
     Purchases
    
    Foreign currency
    
    5 months
    
    
    20,000
    
    
    
    (5,120
    )
    
    
    
    
    
    
    (5,120
    )
    
    
    OPTIONS (d) Put option written Boden 2012 coupon
    
    National government securities
    
    18 months
    
    
    21,680
    
    
    
    
    
    
    
    
    
    
    
    (302
    )
    
    
     Put option written Boden 2013 coupon
    
    National government securities
    
    22 months
    
    
    77,063
    
    
    
    
    
    
    
    
    
    
    
    (3,421
    )
    
    
    (3,997
    )INTEREST RATE SWAP (e) Fixed for variable interest rate
    
    Other
    
    9 months
    
    
    60,000
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
     Variable for fixed interest rate
    
    Other
    
    11 months
    
    
    78,000
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    SWAPS WITH CUSTOMERS (f) Variable for fixed interest rate
    
    Other
    
    10 months
    
    
    40,000
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
 (*)
    
    As of December 31, 2010 and 2009, the amounts correspond to sales as well as purchases.(a)
    
    These transactions are made through recognized exchange markets, such as Mercado Abierto
Electrónico (MAE) and Mercado a Término de Rosario (ROFEX).
   F-42




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##### Table of Contents



Grupo Financiero Galicia S.A. and Subsidiaries
 Notes to the Consolidated Financial Statements
For the years ended December 31, 2010, 2009 and 2008
  (b)
    
    These transactions have been conducted directly with customers. The Group records under Other
Receivables from Financial Brokerage and / or Other Liabilities Resulting from Financial
Brokerage, as the case may be, the difference between the agreed foreign currency exchange rate
and such exchange rate at the end of the year according with the future prices published by Rofex.(c)
    
    The Group entered into forward foreign currency hedge contracts, aimed to hedge the risk
associated with the exchange rate exposure of financial debt designated in U.S. Dollars.
   (d)
    
    As established by Decree 1836/02 and Argentine Central Bank regulations, in connection with the
second exchange offered by the government to exchange restructured deposits for government bonds,
the Bank granted an option to sell coupons to the holders of restructured deposits certificates who
had opted to receive Boden 2013 Bonds and Boden 2012 Bonds in exchange for their certificates.
   (e)
    
    These transactions are conducted within the environment created by the MAE, and the settlement
thereof is carried out on a monthly basis, in pesos, for the difference between the cash flows
calculated using a variable rate (Badlar for time deposits of 30 to 35 days of private banks) and
the cash flows calculated using a fixed rate, or vice versa, on the notional value traded, the
difference in price being charged to income.
   (f)
    
    These transactions have been conducted directly with customers pursuant to the above mentioned
conditions
   F-43




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##### Table of Contents



Grupo Financiero Galicia S.A. and Subsidiaries
 Notes to the Consolidated Financial Statements
For the years ended December 31, 2010, 2009 and 2008
 27. Disclosure about Fair Value of Financial Instruments.
    2010
    
    
    2009Book Value
    
    
    Fair Value
    
    
    Book Value
    
    
    Fair ValueDerivative activities: (see
Note 26)Assets
    
    Ps.
    5,403
    
    
    Ps.
    5,403
    
    
    Ps.
    1,040
    
    
    Ps.
    1,040Liabilities
    
    
    11,085
    
    
    
    14,808
    
    
    
    8,060
    
    
    
    12,057Non derivative activities:Assets:Cash and due from banks (1)
    
    Ps.
    5,645,571
    
    
    Ps.
    5,645,571
    
    
    Ps.
    3,696,309
    
    
    Ps.
    3,696,309Government securities (2)Trading
    
    
    2,133,954
    
    
    
    2,128,146
    
    
    
    1,881,914
    
    
    
    1,882,548Without quotation
    
    
    
    
    
    
    
    
    
    
    1,981,972
    
    
    
    1,920,869Investment
    
    
    133,756
    
    
    
    151,356
    
    
    
    43,350
    
    
    
    43,395Corporate Equity Securities
    
    
    10,302
    
    
    
    10,302
    
    
    
    13,171
    
    
    
    13,171Loans (3)
    
    
    21,353,781
    
    
    
    22,122,026
    
    
    
    13,477,901
    
    
    
    13,732,385Others (4)
    
    
    3,526,930
    
    
    
    3,514,578
    
    
    
    3,830,321
    
    
    
    3,322,184Liabilities:Deposits (5)
    
    Ps.
    22,222,764
    
    
    Ps.
    20,210,974
    
    
    Ps.
    17,039,366
    
    
    Ps.
    17,047,003Other liabilities resulting
from financialIntermediation:Banks and international
entities and Loans from
Domestic Financial
Institutions (6) andNegotiable obligations (7)
    
    
    3,307,905
    
    
    
    3,307,916
    
    
    
    3,517,579
    
    
    
    3,359,272Others (8)
    
    
    5,542,108
    
    
    
    5,240,036
    
    
    
    3,731,245
    
    
    
    3,537,588
  F-44




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##### Table of Contents



Grupo Financiero Galicia S.A. and Subsidiaries
 Notes to the Consolidated Financial Statements
For the years ended December 31, 2010, 2009 and 2008
  (1)
    
    Cash and due from banks:By definition, cash and due from banks are short-term and do not
possess credit loss risk. The carrying values as of December 31, 2010 and 2009 are a reasonable
estimate of fair value.(2)
    
    Government securities:Government securities held for trading purposes are carried at fair
value. Holdings of investment account securities correspond to securities issued by Argentine
Central Bank which fair value corresponds to their quoted market value. As of December 31, 2010
securities without quotation include Bonar 2015 Bonds. Such bonds had quoted market values and
therefore their fair value where determined using the mentioned quoted market values. As of
December 31, 2009 securities included Boden 2012 Bonds, Discount Bonds and Bonar 2015 Bonds. During
fiscal year 2010 positions of Boden 2012 and Discount Bonds have been realized.(3)
    
    Loans:The fair values of loans are estimated for groups of similar characteristics, including
type of loan, credit quality incorporating the credit risk factor. For floating- or adjustable-rate
loans, which mature or are repriced within a short period of time, the carrying values are
considered to be a reasonable estimate of fair values. For fixed-rate loans, market prices are not
generally available and the fair values are estimated discounting the estimated future cash flows
based on the contracted maturity of the loans. The discount rates are based on the current market
rates corresponding to the applicable maturity. Where quoted market prices or estimated fair values
are available, primarily for loans to refinancing countries, loans held for dispositions or sales
and certain other foreign loans, the fair values are based on such market prices and estimated fair
values, including secondary market prices. For nonperforming loans, the fair values are generally
determined on an individual basis by discounting the estimated future cash flows and may be based
on the appraisal value of underlying collateral as appropriate.(4)
    
    Others:Includes other receivables from financial brokerage and equity investments in other
companies. A majority of the items include purchases of government securities held for investment
purposes which fair value is determined by the quoted market value of the underlying government
securities, mostly Bonar 2015 Bonds and Securities issued by Argentine Central Bank. This caption
also include financial trusts certificates of participation which their fair value is estimated
using valuation techniques to convert the future amounts to a single present amount discounted. The
measurement is based on the value indicated by current market expectation about those future
amounts. The estimated of the cash flows is based on the future cash flows from the securitized
assets, considering the prepayments, historical loan performance, etc. Equity investments in
companies where significant influence is exercised are not within the scope of ASC 825, Financial
Instruments. Equity investments in other companies are carried at market value less costs to sell.(5)
    
    Deposits:The fair value of deposit liabilities on demand and savings account deposits is
similar to its book value. The fair value of time deposits was calculated by discounting
contractual cash flows using current market rates for instruments with similar maturities.(6)
    
    Banks and international entities and loans from domestic financial institutions:Includes
credit lines borrowed under different credit arrangements from local and foreign banks and
entities. Most of them were restructured as of May 2004. As of December 2010 and 2009, when no
quoted market prices were available, the estimated fair value has been calculated by discounting
the contractual cash flows of these liabilities at estimated market rates.(7)
    
    Negotiable obligations:As of December 31, 2010 and 2009, the fair value of the negotiable
obligations was determined based on quoted market prices and when no quoted market prices were
available, the estimated fair value has been calculated by discounting the contractual cash flows
of these liabilities at estimated market rates.(8)
    
    Others:Includes other liabilities resulting from financial brokerage. Their fair value was
estimated at the expected future cash flows discounted at the estimated rates at year-end.
  F-45




---



##### Table of Contents



Grupo Financiero Galicia S.A. and Subsidiaries
 Notes to the Consolidated Financial Statements
For the years ended December 31, 2010, 2009 and 2008
 28. Situation of Banco Galicia Uruguay S.A. (in liquidation).
     29. Preferred Liabilities of the former Banco Almafuerte Coop. Ltdo.
       F-46




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##### Table of Contents



Grupo Financiero Galicia S.A. and Subsidiaries
 Notes to the Consolidated Financial Statements
For the years ended December 31, 2010, 2009 and 2008
 30. Financial Trusts.
  Estimated
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Book value of securities held inIssuance
    
    
    maturity
    
    
    
    
    
    
    
    
    
    
    Portfolio
    
    
    own portfolioName
    
    Date
    
    
    date
    
    
    Trustee
    
    Trust assets
    
    transferred
    
    

12/31/10
    
    

12/31/09Galtrust I
    
    
    10/13/00
    
    
    
    10/10/15
    
    
    First Trust of New York N.A.
    
    Secured Bonds in Pesos at 2% due 2018 (1)
    
    
    U.S. 490,224
    (*)
    
    Ps.
    521,862
    (**)
    
    Ps.
    584,111Galicia
    
    
    04/16/02
    
    
    
    05/06/32
    
    
    Bapro Mandatos y Negocios S.A.
    
    National Government Bonds in Pesos at 2% due 2014 (2)
    
    Ps.
    108,000
    
    
    Ps.
    96,364
    
    
    Ps.
    79,990Créditos Inmobiliarios Galicia II
    
    
    10/12/05
    
    
    
    12/15/25
    
    
    Deustche Bank S.A.
    
    Mortgage loans
    
    Ps.
    150,000
    
    
    Ps.
    721
    
    
    Ps.
    56,172Galicia Personales VI
    
    
    09/28/07
    
    
    
    06/15/12
    
    
    Deustche Bank S.A.
    
    Personal loans
    
    Ps.
    108,081
    
    
    
    
    
    
    Ps.
    17,175Galicia Personales VII
    
    
    02/21/08
    
    
    
    11/15/12
    
    
    Deustche Bank S.A.
    
    Personal loans
    
    Ps.
    150,000
    
    
    Ps.
    1,652
    
    
    Ps.
    35,216Galicia Personales VIII
    
    
    07/04/08
    
    
    
    04/15/13
    
    
    Deustche Bank S.A.
    
    Personal loans
    
    Ps.
    187,500
    
    
    
    
    
    
    Ps.
    55,518Totals
    
    Ps.
    620,599
    
    
    Ps.
    828,182
 (*)
    
    The remaining US$9,776 was transferred in cash.(**)
    
    Net of the allowance for impairment of value.(1)
    
    In exchange for loans to the Provincial Governments.(2)
    
    In exchange for secured loans.
  
 
    F-47




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##### Table of Contents



Grupo Financiero Galicia S.A. and Subsidiaries
 Notes to the Consolidated Financial Statements
For the years ended December 31, 2010, 2009 and 2008
   Tarjeta Naranja S.A.
 Estimated
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Book value of securitiesIssuance
    
    
    maturity
    
    
    
    
    
    
    
    
    
    
    Portfolio
    
    
    held in own portfolioName
    
    Date
    
    
    date
    
    
    Trustee
    
    Trust assets
    
    transferred
    
    

12/31/10
    
    

12/31/09Tarjeta Naranja Trust VI
    
    
    12/11/07
    
    
    
    01/23/10
    
    
    Equity Trust Company (Argentina) S.A.
    
    Certain credit rights against cardholders
    
    Ps.
    150,003
    
    
    
    
    
    
    Ps.
    25,115Tarjeta Naranja Trust VII
    
    
    02/19/08
    
    
    
    07/23/10
    
    
    Equity Trust Company (Argentina) S.A.
    
    Certain credit rights against cardholders
    
    Ps.
    142,913
    
    
    
    
    
    
    Ps.
    24,664Tarjeta Naranja Trust VIII
    
    
    08/05/08
    
    
    
    09/20/10
    
    
    Equity Trust Company (Argentina) S.A.
    
    Certain credit rights against cardholders
    
    Ps.
    138,742
    
    
    
    
    
    
    Ps.
    47,917Tarjeta Naranja Trust IX
    
    
    12/12/08
    
    
    
    05/20/10
    
    
    Equity Trust Company (Argentina) S.A.
    
    Certain credit rights against cardholders
    
    Ps.
    90,615
    
    
    
    
    
    
    Ps.
    24,786Totals
    
    
    
    
    
    Ps.
    122,482
  Tarjetas Cuyanas S.A.
 Estimated
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Book value of securitiesIssuance
    
    
    maturity
    
    
    
    
    
    
    
    
    
    
    Portfolio
    
    
    held in own portfolioName
    
    Date
    
    
    date
    
    
    Trustee
    
    Trust assets
    
    transferred
    
    

12/31/10
    
    

12/31/09Tarjetas Cuyanas Trust V
    
    
    02/04/08
    
    
    
    03/15/10
    
    
    Equity Trust Company (Argentina) S.A.
    
    Certain credit rights against cardholders
    
    Ps.
    61,700
    
    
    
    
    
    
    Ps.
    21,637Totals
    
    
    
    
    
    Ps.
    21,637
   F-48




---



##### Table of Contents



Grupo Financiero Galicia S.A. and Subsidiaries
 Notes to the Consolidated Financial Statements
For the years ended December 31, 2010, 2009 and 2008
  
    
    Trust contracts for purposes of guaranteeing compliance with obligations:
  Balances ofTrust Funds
    
    
    Maturity DateDate of Contract
    
    Trustor
    
    Ps.
    
    
    (1)11/01/06
    
    Peñaflor
    
    
    1
    
    
    
    12/31/1104/10/07
    
    Sullair
    
    
    1
    
    
    
    01/31/1302/12/08
    
    Sinteplast
    
    
    2
    
    
    
    01/28/1312/21/09
    
    Las Blondas
    
    
    1
    
    
    
    12/31/1109/24/10
    
    Grupo Gestión
    
    
    2,031
    
    
    
    09/30/12Totals
    
    
    2,036
 (1)
    
    These amounts shall be released monthly until settlement date of trustor obligations or
maturity date, whichever occurs first.
 
    
    Financial trust contracts:
  Balances of Trust FundsDate of Contract
    
    Trust
    
    Ps.
    
    
    U.S.
    
    
    Maturity Date07/13/05
    
    Rumbo Norte I
    
    
    2,301
    
    
    
    42
    
    
    
    07/13/11
    (3)10/12/05
    
    Hydro I
    
    
    15,126
    
    
    
    
    
    
    
    09/05/17
    (2)12/05/06
    
    Faid 2011
    
    
    52,223
    
    
    
    
    
    
    
    02/28/12
    (3)12/06/06
    
    Gas I
    
    
    27,039
    
    
    
    
    
    
    
    12/31/11
    (3)03/02/07
    
    Agro Nitralco
    
    
    534
    
    
    
    
    
    
    
    12/31/11
    (3)09/05/07
    
    Saturno VII
    
    
    123
    
    
    
    
    
    
    
    12/31/11
    (3)11/22/07
    
    Radio Sapienza VI
    
    
    51
    
    
    
    
    
    
    
    06/30/11
    (3)05/06/08
    
    Agro Nitralco II
    
    
    15,165
    
    
    
    
    
    
    
    12/31/11
    (3)05/14/09
    
    Gas II
    
    
    2,371,093
    
    
    
    
    
    
    
    05/31/14
    (3)08/31/10
    
    Sursem I
    
    
    17,119
    
    
    
    
    
    
    
    09/30/11
    (3)Totals
    
    
    2,500,774
    
    
    
    42
 (2)
    
    These amounts shall be released monthly until redemption of debt securities.(3)
    
    Estimated date, since maturity date shall occur at the time of the distribution of all of trust
assets.
 31. Segment Reporting.
   F-49




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##### Table of Contents



Grupo Financiero Galicia S.A. and Subsidiaries
 Notes to the Consolidated Financial Statements
For the years ended December 31, 2010, 2009 and 2008
   Banking:
 Regional Credit Cards
 CFA Personal Loans
 Insurance:
 Other Grupo Businesses:
   F-50




---



##### Table of Contents



Grupo Financiero Galicia S.A. and Subsidiaries
 Notes to the Consolidated Financial Statements
For the years ended December 31, 2010, 2009 and 2008
 CFARegional
    
    
    Personal
    
    
    
    
    
    
    Other Grupos
    
    
    
    
    
    
    ConsolidatedIn Pesos Thousands
    
    Banking
    
    
    Credit Cards
    
    
    Loans
    
    
    Insurance
    
    
    Businesses
    
    
    Adjustments
    
    
    TotalYear ended December 31, 2010Net Financial Income
    
    
    1,427,982
    
    
    
    503,385
    
    
    
    282,021
    
    
    
    28,656
    
    
    
    (738
    )
    
    
    (37,861
    )
    
    
    2,203,445Net Income from Services
    
    
    880,591
    
    
    
    1,040,109
    
    
    
    25,902
    
    
    
    
    
    
    
    12,835
    
    
    
    (177,560
    )
    
    
    1,781,877Net Operating Revenue
    
    
    2,308,573
    
    
    
    1,543,494
    
    
    
    307,923
    
    
    
    28,656
    
    
    
    12,097
    
    
    
    (215,421
    )
    
    
    3,985,322Provisions for Loan Losses
    
    
    307,240
    
    
    
    199,461
    
    
    
    44,823
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    551,524Administrative Expenses
    
    
    1,693,034
    
    
    
    905,035
    
    
    
    159,165
    
    
    
    56,188
    
    
    
    17,351
    
    
    
    14,541
    
    
    
    2,845,314Net Operating Income
    
    
    308,299
    
    
    
    438,998
    
    
    
    103,935
    
    
    
    (27,532
    )
    
    
    (5,254
    )
    
    
    (229,962
    )
    
    
    588,484Income from Equity InvestmentTarjetas Regionales SA
    
    
    270,494
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (270,494
    )
    
    
    Compañía Financiera Argentina SA
    
    
    133,277
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (133,277
    )
    
    
    Sudamericana
    
    
    4,023
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (4,023
    )
    
    
    Others
    
    
    13,665
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    48,389
    
    
    
    62,054Other Income (Loss)
    
    
    (260,624
    )
    
    
    101,716
    
    
    
    37,473
    
    
    
    75,102
    
    
    
    4,602
    
    
    
    162,618
    
    
    
    120,887Non-controlling interests
    
    
    
    
    
    
    (78,417
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (25,916
    )
    
    
    (104,333
    )Pre-tax Income
    
    
    469,134
    
    
    
    462,297
    
    
    
    141,408
    
    
    
    47,570
    
    
    
    (652
    )
    
    
    (452,665
    )
    
    
    667,092Income tax provision
    
    
    
    
    
    
    191,803
    
    
    
    51,195
    
    
    
    16,269
    
    
    
    1,303
    
    
    
    (2,379
    )
    
    
    258,191Net Income
    
    
    469,134
    
    
    
    270,494
    
    
    
    90,213
    
    
    
    31,301
    
    
    
    (1,955
    )
    
    
    (450,286
    )
    
    
    408,901Net Income as a % of Grupo
Financiero Galicias Net Income
    
    
    115
    %
    
    
    66
    %
    
    
    22
    %
    
    
    8
    %
    
    
    (1
    )%
    
    
    
    
    
    
    Average:Private Loans
    
    
    12,818,609
    
    
    
    3,341,756
    
    
    
    640,405
    
    
    
    
    
    
    
    
    
    
    
    2
    
    
    
    16,800,722Deposits
    
    
    18,111,998
    
    
    
    
    
    
    
    116,499
    
    
    
    
    
    
    
    
    
    
    
    (13,095
    )
    
    
    18,215,402End of Period:Assets
    
    
    30,212,422
    
    
    
    4,888,094
    
    
    
    1,754,255
    
    
    
    293,886
    
    
    
    37,810
    
    
    
    (1,478,404
    )
    
    
    35,708,063Equity
    
    
    2,595,660
    
    
    
    812,252
    
    
    
    787,460
    
    
    
    105,102
    
    
    
    22,599
    
    
    
    (1,853,573
    )
    
    
    2,469,500
  F-51




---



##### Table of Contents



Grupo Financiero Galicia S.A. and Subsidiaries
 Notes to the Consolidated Financial Statements
For the years ended December 31, 2010, 2009 and 2008
 Regional
    
    
    
    
    
    
    Other Grupo
    
    
    
    
    
    
    ConsolidatedIn Pesos Thousands
    
    Banking
    
    
    Credit Cards
    
    
    Insurance
    
    
    Businesses
    
    
    Adjustments
    
    
    TotalYear ended December 31, 2009Net Financial Income
    
    
    1,144,226
    
    
    
    375,491
    
    
    
    28,543
    
    
    
    (1,931
    )
    
    
    (1,151
    )
    
    
    1,545,178Net Income from Services
    
    
    727,855
    
    
    
    736,985
    
    
    
    
    
    
    
    12,485
    
    
    
    (166,405
    )
    
    
    1,310,920Net Operating Revenue
    
    
    1,872,081
    
    
    
    1,112,476
    
    
    
    28,543
    
    
    
    10,554
    
    
    
    (167,556
    )
    
    
    2,856,098Provisions for Loan Losses
    
    
    388,665
    
    
    
    250,840
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    639,505Administrative Expenses
    
    
    1,321,785
    
    
    
    621,865
    
    
    
    42,984
    
    
    
    19,255
    
    
    
    23,240
    
    
    
    2,029,129Net Operating Income
    
    
    161,631
    
    
    
    239,771
    
    
    
    (14,441
    )
    
    
    (8,701
    )
    
    
    (190,796
    )
    
    
    187,464Income from Equity InvestmentTarjetas Regionales SA
    
    
    133,028
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (133,028
    )
    
    
    Sudamericana
    
    
    3,352
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (3,352
    )
    
    
    Others
    
    
    13,139
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (1,792
    )
    
    
    11,347Other Income (Loss)
    
    
    (139,303
    )
    
    
    54,966
    
    
    
    55,327
    
    
    
    15,629
    
    
    
    246,349
    
    
    
    232,968Non-controlling interests
    
    
    
    
    
    
    (32,642
    )
    
    
    
    
    
    
    
    
    
    
    (13,870
    )
    
    
    (46,512
    )Pre-tax Income
    
    
    171,847
    
    
    
    262,095
    
    
    
    40,886
    
    
    
    6,928
    
    
    
    (96,489
    )
    
    
    385,267Income tax provision
    
    
    
    
    
    
    129,067
    
    
    
    14,153
    
    
    
    4,576
    
    
    
    8,196
    
    
    
    155,992Net Income
    
    
    171,847
    
    
    
    133,028
    
    
    
    26,733
    
    
    
    2,352
    
    
    
    (104,685
    )
    
    
    229,275Net Income as a % of Grupo
Financiero Galicias Net
Income
    
    
    75
    %
    
    
    58
    %
    
    
    12
    %
    
    
    1
    %
    
    
    
    
    
    
    Average:Private Loans
    
    
    8,959,360
    
    
    
    2,402,489
    
    
    
    
    
    
    
    
    
    
    
    (18,215
    )
    
    
    11,343,634Deposits
    
    
    14,765,933
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (7,376
    )
    
    
    14,758,557End of Period:Assets
    
    
    27,224,687
    
    
    
    3,365,737
    
    
    
    260,694
    
    
    
    39,209
    
    
    
    (3,287,961
    )
    
    
    27,602,366Equity
    
    
    2,126,522
    
    
    
    586,757
    
    
    
    90,801
    
    
    
    21,854
    
    
    
    (773,395
    )
    
    
    2,052,539
  F-52




---



##### Table of Contents



Grupo Financiero Galicia S.A. and Subsidiaries
 Notes to the Consolidated Financial Statements
For the years ended December 31, 2010, 2009 and 2008
 Regional
    
    
    
    
    
    
    Other Grupo
    
    
    
    
    
    
    ConsolidatedIn Pesos thousand
    
    Banking
    
    
    Credit Cards
    
    
    Insurance
    
    
    Businesses
    
    
    Adjustments
    
    
    TotalYear ended December 31, 2008Net Financial Income
    
    
    847,282
    
    
    
    296,156
    
    
    
    20,156
    
    
    
    (80
    )
    
    
    (25,182
    )
    
    
    1,138,332Net Income from Services
    
    
    654,952
    
    
    
    571,829
    
    
    
    
    
    
    
    12,897
    
    
    
    (51,810
    )
    
    
    1,187,868Net Operating Revenue
    
    
    1,502,234
    
    
    
    867,985
    
    
    
    20,156
    
    
    
    12,817
    
    
    
    (76,992
    )
    
    
    2,326,200Provisions for Loan Losses
    
    
    214,948
    
    
    
    180,441
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    395,389Administrative Expenses
    
    
    1,166,476
    
    
    
    554,451
    
    
    
    29,963
    
    
    
    13,463
    
    
    
    16,725
    
    
    
    1,781,078Net Operating Income
    
    
    120,810
    
    
    
    133,093
    
    
    
    (9,807
    )
    
    
    (646
    )
    
    
    (93,717
    )
    
    
    149,733Income from Equity InvestmentTarjetas Regionales SA
    
    
    76,436
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (76,436
    )
    
    
    Sudamericana
    
    
    2,866
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (2,866
    )
    
    
    Others
    
    
    58,164
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (1,400
    )
    
    
    56,764Other Income (Loss)
    
    
    (63,014
    )
    
    
    45,242
    
    
    
    43,506
    
    
    
    2,104
    
    
    
    52,310
    
    
    
    80,148Non-controlling interests
    
    
    
    
    
    
    (20,646
    )
    
    
    
    
    
    
    
    
    
    
    (15,166
    )
    
    
    (35,812
    )Pre-tax Income
    
    
    195,262
    
    
    
    157,689
    
    
    
    33,699
    
    
    
    1,458
    
    
    
    (137,275
    )
    
    
    250,833Income tax provision
    
    
    
    
    
    
    81,253
    
    
    
    11,140
    
    
    
    1,328
    
    
    
    (19,707
    )
    
    
    74,014Net Income
    
    
    195,262
    
    
    
    76,436
    
    
    
    22,559
    
    
    
    130
    
    
    
    (117,568
    )
    
    
    176,819Net Income as a % of Grupo
Financiero Galicias Net
Income
    
    
    110
    %
    
    
    43
    %
    
    
    13
    %
    
    
    
    %
    
    
    
    
    
    
    Average:Loans
    
    
    8,707,477
    
    
    
    2,104,993
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    10,812,470Deposits
    
    
    13,199,000
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (7,712
    )
    
    
    13,191,288End of Period:Assets
    
    
    24,439,812
    
    
    
    2,763,843
    
    
    
    227,719
    
    
    
    22,552
    
    
    
    (2,718,136
    )
    
    
    24,735,790Equity
    
    
    1,954,666
    
    
    
    453,728
    
    
    
    77,065
    
    
    
    8,641
    
    
    
    (648,355
    )
    
    
    1,845,745
  F-53




---



##### Table of Contents



Grupo Financiero Galicia S.A. and Subsidiaries
 Notes to the Consolidated Financial Statements
For the years ended December 31, 2010, 2009 and 2008
 32. Agreement for the purchases of shares
       
    
    Balance Sheet:
 Compañía
    
    
    
    
    
    
    ProcesadoraFinanciera
    
    
    Cobranzas
    
    
    RegionalArgentina
    
    
    y Servicios
    
    
    S.A.12/31/2010
    
    
    12/31/2010
    
    
    12/31/2010Cash and due from banks
    
    
    69,280
    
    
    
    309
    
    
    
    424Government and corporate securities
    
    
    211,787
    
    
    
    
    
    
    
    Loans and Trade receivables
    
    
    1,192,815
    
    
    
    
    
    
    
    Other receivables resulting from financial brokerage
    
    
    187,736
    
    
    
    19,115
    
    
    
    1,708Other assets
    
    
    66,142
    
    
    
    2,297
    
    
    
    2,642Total Assets
    
    
    1,727,760
    
    
    
    21,721
    
    
    
    4,774Deposits
    
    
    385,324
    
    
    
    
    
    
    
    Other liabilities resulting from financial brokerage
    
    
    435,107
    
    
    
    
    
    
    
    2Provisions
    
    
    8,150
    
    
    
    
    
    
    
    Other liabilities
    
    
    130,455
    
    
    
    3,405
    
    
    
    4,352Total Liabilities
    
    
    959,036
    
    
    
    3,405
    
    
    
    4,354Shareholders Equity
    
    
    768,724
    
    
    
    18,316
    
    
    
    420Total Liabilities and Shareholders Equity
    
    
    1,727,760
    
    
    
    21,721
    
    
    
    4,774
  F-54




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##### Table of Contents



Additional business combination disclosure as required by ASC 805-10-50-2 (h)
  Condensed income statement of the CFA Groupfor the six-month period ending December 31,2010Net financial income
    
    
    282,021Net Income from services
    
    
    25,902Net operating revenue
    
    
    307,923Provisions for loan losses
    
    
    (44,823
    )Administrative expenses
    
    
    (159,165
    )Net operating income
    
    
    103,935Other income loss
    
    
    37,473Non-controlling interest
    
    
    Pre-tax income
    
    
    141,408Income tax provision
    
    
    (51,195
    )Net Income
    
    
    90,213
     Unaudited pro-forma condensedincome statement of Grupo
    
    
    Unaudited pro-forma condensedFinanciero Galicia for the twelve-
    
    
    income statement Grupo Financieromonth period ending December 31,
    
    
    Galicia for the twelve-month period2010
    
    
    ending December 31, 2009Net financial income
    
    
    2,453,977
    
    
    
    1,918,615Net Income from services
    
    
    1,807,430
    
    
    
    1,351,678Net operating revenue
    
    
    4,261,407
    
    
    
    3,270,293Provisions for loan losses
    
    
    (681,602
    )
    
    
    (791,689
    )Administrative expenses
    
    
    (2,999,289
    )
    
    
    (2,269,451
    )Net operating income
    
    
    580,516
    
    
    
    209,153Other income
    
    
    194,764
    
    
    
    273,057Non-controlling interest
    
    
    (104,333
    )
    
    
    (155,992
    )Pre-tax income
    
    
    670,947
    
    
    
    326,218Income tax provision
    
    
    (283,428
    )
    
    
    (65,871
    )Net Income
    
    
    387,519
    
    
    
    260,347
  F-55




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##### Table of Contents



Grupo Financiero Galicia S.A. and Subsidiaries
 Notes to the Consolidated Financial Statements
For the years ended December 31, 2010, 2009 and 2008
 33. Differences between the Argentine Central Banks regulations and Argentine GAAP in the
Autonomous City of Buenos Aires.
  Boden 2012 Bonds
    The same criterion was applied to holdings of such bonds used in repo transactions recorded
under Other Receivables Resulting from Financial Brokerage and Miscellaneous Receivables.
 Bonar 2015 Bonds
    Bonar 2015 Bonds in Investment Accounts
   Discount Bonds and GDP-Linked Negotiable Securities
   F-56




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##### Table of Contents



Grupo Financiero Galicia S.A. and Subsidiaries
 Notes to the Consolidated Financial Statements
For the years ended December 31, 2010, 2009 and 2008
   Accounting disclosure of effects generated by court decisions on deposits
   Conversion of financial statements
     Allowance for loan losses  Non-financial public sector
  Negative Goodwill
    F-57




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##### Table of Contents



Grupo Financiero Galicia S.A. and Subsidiaries
 Notes to the Consolidated Financial Statements
For the years ended December 31, 2010, 2009 and 2008
 Accounting for income tax according to the deferred tax method
   Adoption of the International Financial Reporting Standards by the National Securities
Commission
       F-58




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##### Table of Contents



Grupo Financiero Galicia S.A. and Subsidiaries
 Notes to the Consolidated Financial Statements
For the years ended December 31, 2010, 2009 and 2008
 34. Subsequent events
 Grupo Financiero Galicia
  Banco Galicia
    Tarjetas Regionales
   Compañía Financiera Argentina
    F-59




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##### Table of Contents



Grupo Financiero Galicia S.A. and Subsidiaries
 Notes to the Consolidated Financial Statements
For the years ended December 31, 2010, 2009 and 2008
   35. Summary of Significant Differences between Argentine Central Bank Rules and United States
Accounting Principles.
  a. Income tax
    F-60




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##### Table of Contents



Grupo Financiero Galicia S.A. and Subsidiaries
 Notes to the Consolidated Financial Statements
For the years ended December 31, 2010, 2009 and 2008
  December 31, 2010ASC 740-10applied to
    
    
    ASC 740-10Argentine
    
    
    applied to U.S.
    
    
    U.S. GAAPGAAP
    
    
    GAAP
    
    
    Deferred Taxbalances
    
    
    adjustments
    
    
    totalDeferred tax assetsAllowance for loan losses  private sector
    
    
    165,836
    
    
    
    (22,919
    )
    
    
    142,917Intangible assets
    
    
    997
    
    
    
    46,766
    
    
    
    47,763Impairment of fixed assets and foreclosed assets
    
    
    
    
    
    
    19,598
    
    
    
    19,598Debt restructuring
    
    
    
    
    
    
    26,603
    
    
    
    26,603Investments
    
    
    7,175
    
    
    
    
    
    
    
    7,175Liabilities
    
    
    70,838
    
    
    
    
    
    
    
    70,838Others
    
    
    89,128
    
    
    
    30,970
    
    
    
    120,098Loss carry forward
    
    
    91,840
    
    
    
    
    
    
    
    91,840Total gross deferred tax assets
    
    Ps.
    425,814
    
    
    Ps.
    101,018
    
    
    Ps.
    526,832Deferred tax liabilities:Allowance for loan losses  public sector
    
    
    (54,514
    )
    
    
    
    
    
    
    (54,514
    )Provincial public debt
    
    
    
    
    
    
    (27,541
    )
    
    
    (27,541
    )Others
    
    
    (117,998
    )
    
    
    
    
    
    
    (117,998
    )Total gross deferred tax liabilities
    
    Ps.
    (172,512
    )
    
    Ps.
    (27,541
    )
    
    Ps.
    (200,053
    )Net deferred income tax asset before valuation allowance
    
    Ps.
    253,302
    
    
    Ps.
    73,477
    
    
    Ps.
    326,779Valuation allowance
    
    
    
    
    
    
    
    
    
    
    Net deferred income tax assets
    
    Ps.
    253,302
    
    
    Ps.
    73,477
    
    
    Ps.
    326,779
  F-61




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##### Table of Contents



Grupo Financiero Galicia S.A. and Subsidiaries
 Notes to the Consolidated Financial Statements
For the years ended December 31, 2010, 2009 and 2008
 December 31, 2009ASC 740-10applied to
    
    
    ASC 740-10Argentine
    
    
    applied to U.S.
    
    
    U.S. GAAPGAAP
    
    
    GAAP
    
    
    Deferred Taxbalances
    
    
    adjustments
    
    
    totalDeferred tax assetsAllowance for loan losses  private sector
    
    
    175,935
    
    
    
    (22,285
    )
    
    
    153,650Compensatory Bond, Bonar Bonds, Discount Bonds and
other investments
    
    
    (41,792
    )
    
    
    49,764
    
    
    
    7,972Intangible assets
    
    
    93,938
    
    
    
    27,074
    
    
    
    121,012Compensation related to the payment of deposits
    
    
    
    
    
    
    90,669
    
    
    
    90,669Impairment of fixed assets and foreclosed assets
    
    
    
    
    
    
    20,087
    
    
    
    20,087Provision for contingencies
    
    
    71,225
    
    
    
    
    
    
    
    71,225Debt restructuring
    
    
    
    
    
    
    48,045
    
    
    
    48,045Others
    
    
    84,921
    
    
    
    33,723
    
    
    
    118,644Loss carry forward
    
    
    93,821
    
    
    
    
    
    
    
    93,821Total gross deferred tax assets
    
    Ps.
    478,048
    
    
    Ps.
    247,077
    
    
    Ps.
    725,125Deferred tax liabilities:Allowance for loan losses  public sector
    
    
    (25,743
    )
    
    
    
    
    
    
    (25,743
    )Others
    
    
    (122,672
    )
    
    
    
    
    
    
    (122,672
    )Total gross deferred tax liabilities
    
    Ps.
    (148,415
    )
    
    Ps.
    
    
    
    Ps.
    (148,415
    )Net deferred income tax asset before valuation allowance
    
    Ps.
    329,633
    
    
    Ps.
    247,077
    
    
    Ps.
    576,710Valuation allowance
    
    
    
    
    
    
    
    
    
    
    Net deferred income tax assets
    
    Ps.
    329,633
    
    
    Ps.
    247,077
    
    
    Ps.
    576,710
  December 31,2010
    
    
    2009
    
    
    2008Statutory income tax rate
    
    
    35
    %
    
    
    35
    %
    
    
    35
    %Tax provision computed by applying
the statutory rate to the income
before taxation calculated in
accordance with U.S. GAAP
    
    Ps.
    965,311
    
    
    Ps.
    288,659
    
    
    Ps.
    (427,665
    )Tax exempt income
    
    
    (457,189
    )
    
    
    564,995
    
    
    
    92,791Valuation allowance
    
    
    
    
    
    
    (799,138
    )
    
    
    283,952Actual tax provision under U.S. GAAP
    
    Ps.
    508,122
    
    
    Ps.
    54,516
    
    
    Ps.
    (50,922
    )
   F-62




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##### Table of Contents



Grupo Financiero Galicia S.A. and Subsidiaries
 Notes to the Consolidated Financial Statements
For the years ended December 31, 2010, 2009 and 2008
      Jurisdiction
    
    Tax yearArgentina
    
    
    2006  2010Uruguay
    
    
    2006  2010
 b. Commissions on loans
  c. Intangible assets
 Goodwill  Amortization and impairment
  December 31,2010
    
    
    2009Goodwill impairment (1)
    
    
    (11,483
    )
    
    
    (16,649
    )Reversal of amortizations (2)
    
    
    43,618
    
    
    
    41,856Total
    
    Ps.
    32,135
    
    
    Ps.
    25,207
 (1)
    
    The amount mainly includes goodwill recorded on the purchase of regional credit-card companies,
the acquisition of assets and liabilities of the retail division of ABN AMRO Bank and other
subsidiaries are being amortized over 10 years for Argentine Banking GAAP purposes.  F-63




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##### Table of Contents



Grupo Financiero Galicia S.A. and Subsidiaries
 Notes to the Consolidated Financial Statements
For the years ended December 31, 2010, 2009 and 2008
  (2)
    
    Goodwill being amortized for Argentine Banking GAAP purposes included goodwill previously
impaired under U.S. GAAP, has been reversed for U.S. GAAP purposes. Negative Goodwill  Compañía Financiera Argentina S.A., Cobranzas y Servicios S.A., and
Procesadora Regional S.A.
     F-64




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##### Table of Contents



Grupo Financiero Galicia S.A. and Subsidiaries
 Notes to the Consolidated Financial Statements
For the years ended December 31, 2010, 2009 and 2008
     
 
  CompañíaFinanciera
    
    
    Cobranzas y
    
    
    UniversalArgentina
    
    
    Servicios
    
    
    Processing CenterAcquisition date
    
    June 30, 2010
    
    June 30, 2010
    
    June 30, 2010Fair value of consideration transferred:Cash
    
    Ps.
    328,279
    
    
    Ps.
    835
    
    
    Ps.
    4,809Total
    
    
    328,279
    
    
    
    835
    
    
    
    4,809Recognised amounts of identifiable assets acquired
and liabilities assumed:Cash and due from banks
    
    
    61,125
    
    
    
    522
    
    
    
    816Government and corporate securities
    
    
    31,948
    
    
    
    15,789
    
    
    
    934Loans and Trade receivables
    
    
    1,138,407
    
    
    
    3,189
    
    
    
    Other receivables resulting from financial brokerage
    
    
    68,842
    
    
    
    
    
    
    
    Other assets
    
    
    44,605
    
    
    
    783
    
    
    
    1,476Deposits
    
    
    (304,488
    )
    
    
    
    
    
    
    Other liabilities resulting from financial brokerage
    
    
    (123,759
    )
    
    
    
    
    
    
    Provisions
    
    
    (10,135
    )
    
    
    (750
    )
    
    
    Other liabilities
    
    
    (77,658
    )
    
    
    (1,934
    )
    
    
    (2,466
    )Total identifiable net assets
    
    
    828,887
    
    
    
    17,599
    
    
    
    760Goodwill /(Negative Goodwill)
    
    Ps.
    (500,608
    )
    
    Ps.
    (16,764
    )
    
    Ps.
    4,049
  F-65




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##### Table of Contents



Grupo Financiero Galicia S.A. and Subsidiaries
 Notes to the Consolidated Financial Statements
For the years ended December 31, 2010, 2009 and 2008
      
    
    for the fiscal year ended December 31, 2010,
 
    
    for the six-month period ended June 30, 2010, which were not included in Groups
consolidated financial statements for the year ended December 31, 2010, and
 
    
    for the six-month period ended December 31, 2010 which were the results consolidated in
Groups consolidated financial statements for the year ended December 31, 2010 considering
that the acquisition date was June 30, 2010,
 
    
    Compañía Financiera Argentina
 Six mounths
    
    
    Six mounthsFiscal year ended
    
    
    period ended
    
    
    period ended12/31/2010
    
    
    06/30/2010
    
    
    12/31/2010 (*)Financial Income
    
    
    618,290
    
    
    
    292,689
    
    
    
    325,601Financial Expenses
    
    
    (85,753
    )
    
    
    (42,156
    )
    
    
    (43,597
    )Loan Loss provisions
    
    
    (174,901
    )
    
    
    (130,078
    )
    
    
    (44,823
    )Income from Services
    
    
    47,631
    
    
    
    23,674
    
    
    
    23,957Expenses for Services
    
    
    (33,109
    )
    
    
    (15,314
    )
    
    
    (17,795
    )Administrative expenses
    
    
    (276,894
    )
    
    
    (136,755
    )
    
    
    (140,139
    )Miscellaneous Income
    
    
    67,472
    
    
    
    25,649
    
    
    
    41,823Miscellaneous Losses
    
    
    (18,191
    )
    
    
    (13,001
    )
    
    
    (5,190
    )Income Tax
    
    
    (75,000
    )
    
    
    (25,000
    )
    
    
    (50,000
    )Net Income / (Loss)
    
    
    69,545
    
    
    
    (20,292
    )
    
    
    89,837
 (*)
    
    These amounts do not include adjustments and consolidating eliminations.  F-66




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##### Table of Contents



Grupo Financiero Galicia S.A. and Subsidiaries
 Notes to the Consolidated Financial Statements
For the years ended December 31, 2010, 2009 and 2008
 
    
    Cobranzas y Servicios
 Six mounths
    
    
    Six mounthsFiscal year ended
    
    
    period ended
    
    
    period ended12/31/2010
    
    
    06/30/2010
    
    
    12/31/2010(*)Financial Income
    
    
    
    
    
    
    
    
    
    
    Financial Expenses
    
    
    
    
    
    
    
    
    
    
    Loan Loss provisions
    
    
    
    
    
    
    
    
    
    
    Income from Services
    
    
    20,506
    
    
    
    10,203
    
    
    
    10,303Expenses for Services
    
    
    (664
    )
    
    
    (326
    )
    
    
    (338
    )Administrative expenses
    
    
    (17,160
    )
    
    
    (8,268
    )
    
    
    (8,892
    )Miscellaneous Income
    
    
    13
    
    
    
    (826
    )
    
    
    839Miscellaneous Losses
    
    
    
    
    
    
    
    
    
    
    Income Tax
    
    
    (1,195
    )
    
    
    
    
    
    
    (1,195
    )Net Income / (Loss)
    
    
    1,500
    
    
    
    783
    
    
    
    717
 (*)
    
    These amounts do not include adjustments and consolidating eliminations. 
    
    Procesadora Regional S.A.
 Six mounths
    
    
    Six mounthsFiscal year ended
    
    
    period ended
    
    
    period ended12/31/2010
    
    
    06/30/2010
    
    
    12/31/2010(*)Financial Income
    
    
    16
    
    
    
    (1
    )
    
    
    17Financial Expenses
    
    
    
    
    
    
    
    
    
    
    Loan Loss provisions
    
    
    
    
    
    
    
    
    
    
    Income from Services
    
    
    17,635
    
    
    
    7,531
    
    
    
    10,104Expenses for Services
    
    
    (564
    )
    
    
    (235
    )
    
    
    (329
    )Administrative expenses
    
    
    (19,086
    )
    
    
    (8,952
    )
    
    
    (10,134
    )Miscellaneous Income
    
    
    2
    
    
    
    1
    
    
    
    1Miscellaneous Losses
    
    
    
    
    
    
    
    
    
    
    Income Tax
    
    
    (237
    )
    
    
    (237
    )
    
    
    Net Income / (Loss)
    
    
    (2,234
    )
    
    
    (1,893
    )
    
    
    (341
    )
 (*)
    
    These amounts do not include adjustments and consolidating eliminations. Software costs
    F-67




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##### Table of Contents



Grupo Financiero Galicia S.A. and Subsidiaries
 Notes to the Consolidated Financial Statements
For the years ended December 31, 2010, 2009 and 2008
 d. Loan loss reserves
 (i) Loans  Non-financial national public sector
       (ii) Loans to the non-financial private sector and residents abroad
   
    
    With Problems
    
    High Risk of Insolvency
    
    Uncollectible
  F-68




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##### Table of Contents



Grupo Financiero Galicia S.A. and Subsidiaries
 Notes to the Consolidated Financial Statements
For the years ended December 31, 2010, 2009 and 2008
      a.
    
    Allowance for Credit Losses and Recorded Investments in Financial Receivables
  As of December 31, 2010CommercialConsumer
    
    
    LoanLoan Portfolio
    
    
    Portfolio
    
    
    TotalAllowance for credit losses:Ending balance: individually
evaluated for
impairment
    
    
    
    
    
    
    61,607
    
    
    
    61,607Ending balance: collectively
evaluated for
impairment
    
    
    729,212
    
    
    
    13,867
    
    
    
    743,079Ending Balance
    
    
    729,212
    
    
    
    75,474
    
    
    
    804,686Financing receivables:Ending balance: individually
evaluated for
impairment
    
    
    
    
    
    
    137,175
    
    
    
    137,175Ending balance: collectively
evaluated for
impairment
    
    
    14,123,190
    
    
    
    9,291,751
    
    
    
    23,414,941Ending Balance
    
    
    14,123,190
    
    
    
    9,428,926
    
    
    
    23,552,116
  F-69




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##### Table of Contents



Grupo Financiero Galicia S.A. and Subsidiaries
 Notes to the Consolidated Financial Statements
For the years ended December 31, 2010, 2009 and 2008
 As of December 31, 2009Consumer
    
    
    CommercialLoan Portfolio
    
    
    Loan Portfolio
    
    
    TotalAllowance for credit losses:Ending balance: individually
evaluated for
impairment
    
    
    
    
    
    
    64,777
    
    
    
    64,777Ending balance: collectively
evaluated for
impairment
    
    
    671,268
    
    
    
    16,247
    
    
    
    687,515Ending Balance
    
    
    671,268
    
    
    
    81,024
    
    
    
    752,292Financing receivables:Ending balance: individually
evaluated for
impairment
    
    
    
    
    
    
    286,256
    
    
    
    286,256Ending balance: collectively
evaluated for
impairment
    
    
    8,899,877
    
    
    
    6,687,669
    
    
    
    15,587,546Ending Balance
    
    
    8,899,877
    
    
    
    6,973,925
    
    
    
    15,873,802
 b. Loan Charge-off s and recoveries
  c. Impaired Loans
   F-70




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##### Table of Contents



Grupo Financiero Galicia S.A. and Subsidiaries
 Notes to the Consolidated Financial Statements
For the years ended December 31, 2010, 2009 and 2008
  As of December 31, 2010UnpaidRecorded
    
    
    Principal
    
    
    RelatedInvestment
    
    
    Balance
    
    
    AllowanceWith no related allowance recorded:CommercialImpaired Loans
    
    
    6,147
    
    
    
    2,956
    
    
    
    With an allowance recorded:CommercialImpaired Loans
    
    
    131,028
    
    
    
    236,899
    
    
    
    61,607Total
    
    
    137,175
    
    
    
    239,855
    
    
    
    61,607
 As of December 31, 2009UnpaidRecorded
    
    
    Principal
    
    
    RelatedInvestment
    
    
    Balance
    
    
    AllowanceWith no related allowance recorded:CommercialImpaired Loans
    
    
    39,052
    
    
    
    4,632
    
    
    
    With an allowance recorded:CommercialImpaired Loans
    
    
    247,204
    
    
    
    149,342
    
    
    
    64,777Total
    
    
    286,256
    
    
    
    153,974
    
    
    
    64,777
   d. Non-accrual Loans
   F-71




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##### Table of Contents



Grupo Financiero Galicia S.A. and Subsidiaries
 Notes to the Consolidated Financial Statements
For the years ended December 31, 2010, 2009 and 2008
  As of December 31,2010
    
    
    2009ConsumerAdvances
    
    
    26,586
    
    
    
    23,599Promissory Notes
    
    
    25,030
    
    
    
    18,201Mortgage Loans
    
    
    7,638
    
    
    
    7,601Personal Loans
    
    
    169,018
    
    
    
    73,178Credit Card Loans
    
    
    221,786
    
    
    
    280,111Other Loans
    
    
    12,469
    
    
    
    8,700Total Consumer
    
    
    462,527
    
    
    
    411,390CommercialPerforming Loans
    
    
    
    
    
    
    Impaired Loans
    
    
    135,710
    
    
    
    274,024Total Commercial
    
    
    135,710
    
    
    
    274,024Total Non accrual loans
    
    
    598,237
    
    
    
    685,414
  As of December 31, 201030-90
    
    
    91-180
    
    
    181-360Days Past
    
    
    Days Past
    
    
    Days Past
    
    
    Greater
    
    
    Total Past
    
    
    
    
    
    
    TotalDue
    
    
    Due
    
    
    Due
    
    
    than 360
    
    
    Due
    
    
    Current
    
    
    FinancingConsumerAdvances
    
    
    7,124
    
    
    
    7,879
    
    
    
    10,705
    
    
    
    8,002
    
    
    
    33,710
    
    
    
    203,599
    
    
    
    237,309Promissory Notes
    
    
    3,572
    
    
    
    5,695
    
    
    
    9,949
    
    
    
    9,386
    
    
    
    28,602
    
    
    
    789,459
    
    
    
    818,061Mortgage Loans
    
    
    5,489
    
    
    
    2,585
    
    
    
    1,222
    
    
    
    3,831
    
    
    
    13,127
    
    
    
    469,721
    
    
    
    482,848Personal Loans
    
    
    91,978
    
    
    
    63,211
    
    
    
    86,722
    
    
    
    19,085
    
    
    
    260,996
    
    
    
    3,757,871
    
    
    
    4,018,867Credit Cards Loans
    
    
    137,370
    
    
    
    88,265
    
    
    
    115,653
    
    
    
    17,868
    
    
    
    359,156
    
    
    
    7,994,885
    
    
    
    8,354,041Other Loans
    
    
    3,272
    
    
    
    5,018
    
    
    
    3,021
    
    
    
    4,430
    
    
    
    15,741
    
    
    
    196,323
    
    
    
    212,064Total Consumer Loans
    
    
    248,805
    
    
    
    172,653
    
    
    
    227,272
    
    
    
    62,602
    
    
    
    711,332
    
    
    
    13,411,858
    
    
    
    14,123,190Commercial:Performing Loans
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    9,291,751
    
    
    
    9,291,751Impaired loans
    
    
    
    
    
    
    
    
    
    
    16,872
    
    
    
    112,996
    
    
    
    129,868
    
    
    
    7,307
    
    
    
    137,175Total Commercial
Loans
    
    
    
    
    
    
    
    
    
    
    16,872
    
    
    
    112,996
    
    
    
    129,868
    
    
    
    9,299,058
    
    
    
    9,428,926Total
    
    
    248,805
    
    
    
    172,653
    
    
    
    244,144
    
    
    
    175,598
    
    
    
    841,200
    
    
    
    22,710,916
    
    
    
    23,552,116
  F-72




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##### Table of Contents



Grupo Financiero Galicia S.A. and Subsidiaries
 Notes to the Consolidated Financial Statements
For the years ended December 31, 2010, 2009 and 2008
 As of December 31, 200930-90
    
    
    91-180
    
    
    181-360Days Past
    
    
    Days Past
    
    
    Days Past
    
    
    Greater
    
    
    Total Past
    
    
    
    
    
    
    TotalDue
    
    
    Due
    
    
    Due
    
    
    than 360
    
    
    Due
    
    
    Current
    
    
    FinancingConsumerAdvances
    
    
    3,860
    
    
    
    6,419
    
    
    
    10,885
    
    
    
    6,295
    
    
    
    27,459
    
    
    
    166,520
    
    
    
    193,979Promissory Notes
    
    
    5,524
    
    
    
    5,622
    
    
    
    8,226
    
    
    
    4,353
    
    
    
    23,725
    
    
    
    706,986
    
    
    
    730,711Mortgage Loans
    
    
    6,643
    
    
    
    1,825
    
    
    
    1,310
    
    
    
    4,466
    
    
    
    14,244
    
    
    
    463,356
    
    
    
    477,600Personal Loans
    
    
    28,439
    
    
    
    19,170
    
    
    
    38,564
    
    
    
    15,445
    
    
    
    101,618
    
    
    
    1,725,125
    
    
    
    1,826,743Credit Cards Loans
    
    
    112,350
    
    
    
    86,491
    
    
    
    158,200
    
    
    
    35,420
    
    
    
    392,461
    
    
    
    5,110,849
    
    
    
    5,503,310Other Loans
    
    
    2,901
    
    
    
    2,343
    
    
    
    2,882
    
    
    
    3,474
    
    
    
    11,600
    
    
    
    155,934
    
    
    
    167,534Total Consumer Loans
    
    
    159,717
    
    
    
    121,870
    
    
    
    220,067
    
    
    
    69,453
    
    
    
    571,107
    
    
    
    8,328,770
    
    
    
    8,899,877Commercial:Performing Loans
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    6,687,669
    
    
    
    6,687,669Impaired loans
    
    
    
    
    
    
    
    
    
    
    103,888
    
    
    
    140,687
    
    
    
    244,575
    
    
    
    41,681
    
    
    
    286,256Total Commercial
Loans
    
    
    
    
    
    
    
    
    
    
    103,888
    
    
    
    140,687
    
    
    
    244,575
    
    
    
    6,729,350
    
    
    
    6,973,925Total
    
    
    159,717
    
    
    
    121,870
    
    
    
    323,955
    
    
    
    210,140
    
    
    
    815,682
    
    
    
    15,058,120
    
    
    
    15,873,802
  e. Credit Quality Indicators
  Commercial Portfolio
 Loan Classification
    
    Description1. Normal Situation
    
    The debtor is widely able to meet its financial obligations, demonstrating
significant cash flows, a liquid financial situation, an adequate financial structure, a
timely payment record, competent management, available information in a timely, accurate
manner and satisfactory internal controls. The debtor is in the upper 50% of a sector of
activity that is operating properly and has good prospects.2. With Special Follow-up
    
    Cash flow analysis reflects that the debt may be repaid even though
it is possible that the customers future payment ability may deteriorate without a proper
follow-up.This category is divided into two
subcategories:(2.a). Under Observation;(2.b). Under Negotiation or Refinancing
Agreements.3. With Problems
    
    Cash flow analysis evidences problems to repay the debt, and therefore, if
these problems are not solved, there may be some losses.4. High Risk of Insolvency
    
    Cash flow analysis evidences that repayment of the full debt is
highly unlikely.5. Uncollectible
    
    The amounts in this category are deemed total losses. Even though these assets
may be recovered under certain future circumstances, inability to make payments is evident at
the date of the analysis. It includes loans to insolvent or bankrupt borrowers.
 .
  F-73




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##### Table of Contents



Grupo Financiero Galicia S.A. and Subsidiaries
 Notes to the Consolidated Financial Statements
For the years ended December 31, 2010, 2009 and 2008
 Consumer Portfolio
 Loan Classification
    
    Description1. Normal Situation
    
    Loans with timely repayment or arrears not exceeding 31 days, both of
principal and interest.2. Low Risk
    
    Occasional late payments, with a payment in arrears of more than 32 days and up to
90 days. A customer classified as Normal having been refinanced may be recategorized within
this category, as long as he amortizes one principal installment (whether monthly or
bimonthly) or repays 5% of principal.3. Medium Risk
    
    Some inability to make payments, with arrears of more than 91 days and up to 180
days. A customer classified as Low Risk having been refinanced may be recategorized within
this category, as long as he amortizes two principal installments (whether monthly or
bimonthly) or repays 5% of principal.4. High Risk
    
    Judicial proceedings demanding payment have been initiated or arrears of more than
180 days and up to one year. A customer classified as Medium Risk having been refinanced may
be recategorized within this category, as long as he amortizes three principal installments
(whether monthly or bimonthly) or repays 10% of principal.5. Uncollectible
    
    Loans to insolvent or bankrupt borrowers, or subject to judicial proceedings,
with little or no possibility of collection, or with arrears in excess of one year.
   As of December 31, 20101
    
    
    2
    
    
    3
    
    
    4
    
    
    5With special
    
    
    
    
    
    
    High risk ofNormal
    
    
    follow-up or
    
    
    With problems
    
    
    insolvency orSituation
    
    
    Low Risk
    
    
    or Medium Risk
    
    
    High risk
    
    
    Uncollectible
    
    
    TotalConsumerAdvances
    
    
    203,599
    
    
    
    7,124
    
    
    
    7,879
    
    
    
    10,705
    
    
    
    8,002
    
    
    
    237,309Promissory Notes
    
    
    789,459
    
    
    
    3,572
    
    
    
    5,695
    
    
    
    9,949
    
    
    
    9,386
    
    
    
    818,061Mortgage Loans
    
    
    469,721
    
    
    
    5,489
    
    
    
    2,585
    
    
    
    1,222
    
    
    
    3,831
    
    
    
    482,848Personal Loans
    
    
    3,757,871
    
    
    
    91,978
    
    
    
    63,211
    
    
    
    86,722
    
    
    
    19,085
    
    
    
    4,018,867Credit Cards Loans
    
    
    7,994,885
    
    
    
    137,370
    
    
    
    88,265
    
    
    
    115,653
    
    
    
    17,868
    
    
    
    8,354,041Other Loans
    
    
    196,323
    
    
    
    3,272
    
    
    
    5,018
    
    
    
    3,021
    
    
    
    4,430
    
    
    
    212,064Total Consumer Loans
    
    
    13,411,858
    
    
    
    248,805
    
    
    
    172,653
    
    
    
    227,272
    
    
    
    62,602
    
    
    
    14,123,190Commercial:Performing loans
    
    
    9,204,218
    
    
    
    87,533
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    9,291,751Impaired loans
    
    
    
    
    
    
    1,465
    
    
    
    53,299
    
    
    
    78,230
    
    
    
    4,181
    
    
    
    137,175Total Commercial Loans
    
    
    9,204,218
    
    
    
    88,998
    
    
    
    53,299
    
    
    
    78,230
    
    
    
    4,181
    
    
    
    9,428,926Total Financing
Receivables
    
    
    22,616,076
    
    
    
    337,803
    
    
    
    225,952
    
    
    
    305,502
    
    
    
    66,783
    
    
    
    23,552,116
  F-74




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##### Table of Contents



Grupo Financiero Galicia S.A. and Subsidiaries
 Notes to the Consolidated Financial Statements
For the years ended December 31, 2010, 2009 and 2008
 As of December 31, 20091
    
    
    2
    
    
    3
    
    
    4
    
    
    5With special
    
    
    
    
    
    
    High risk ofNormal
    
    
    follow-up or
    
    
    With problems
    
    
    insolvency orSituation
    
    
    Low Risk
    
    
    or Medium Risk
    
    
    High risk
    
    
    Uncollectible
    
    
    TotalConsumerAdvances
    
    
    166,520
    
    
    
    3,860
    
    
    
    6,419
    
    
    
    10,885
    
    
    
    6,295
    
    
    
    193,979Promissory Notes
    
    
    706,986
    
    
    
    5,524
    
    
    
    5,622
    
    
    
    8,226
    
    
    
    4,353
    
    
    
    730,711Mortgage Loans
    
    
    463,356
    
    
    
    6,643
    
    
    
    1,825
    
    
    
    1,310
    
    
    
    4,466
    
    
    
    477,600Personal Loans
    
    
    1,725,125
    
    
    
    28,439
    
    
    
    19,170
    
    
    
    38,564
    
    
    
    15,445
    
    
    
    1,826,743Credit Cards Loans
    
    
    5,110,849
    
    
    
    112,350
    
    
    
    86,491
    
    
    
    158,200
    
    
    
    35,420
    
    
    
    5,503,310Other Loans
    
    
    155,934
    
    
    
    2,901
    
    
    
    2,343
    
    
    
    2,882
    
    
    
    3,474
    
    
    
    167,534Total Consumer Loans
    
    
    8,328,770
    
    
    
    159,717
    
    
    
    121,870
    
    
    
    220,067
    
    
    
    69,453
    
    
    
    8,899,877Commercial:Performing loans
    
    
    6,568,822
    
    
    
    118,847
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    6,687,669Impaired loans
    
    
    6,250
    
    
    
    5,982
    
    
    
    97,484
    
    
    
    170,515
    
    
    
    6,025
    
    
    
    286,256Total Commercial Loans
    
    
    6,575,072
    
    
    
    124,829
    
    
    
    97,484
    
    
    
    170,515
    
    
    
    6,025
    
    
    
    6,973,925Total Financing
Receivables
    
    
    14,903,842
    
    
    
    284,546
    
    
    
    219,354
    
    
    
    390,582
    
    
    
    75,478
    
    
    
    15,873,802
  ArgentineBanking GAAP
    
    
    U.S. GAAP
    
    
    AdjustmentDecember 31, 2009
    
    
    815,963
    
    
    
    752,292
    
    
    
    63,671Variances
    
    
    54,206
    
    
    
    52,394
    
    
    
    1,812December 31, 2010
    
    Ps.
    870,169
    (*)
    
    Ps.
    804,686
    
    
    Ps.
    65,483
 (*)
    
    The balance does not include Ps. 185,381 of CFA allowances for loan losses as of the
acquisition date.  F-75




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##### Table of Contents



Grupo Financiero Galicia S.A. and Subsidiaries
 Notes to the Consolidated Financial Statements
For the years ended December 31, 2010, 2009 and 2008
 e. Government securities and other investments
 (i) Compensatory and Hedge bonds received and Hedge Bonds in connection with the
compensation for foreign currency position and compensatory bonds received and to be
received in connection with the compensation for asymmetric pesification.
        2010
    
    
    2009Book
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    BookValue
    
    
    Fair value -
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Value
    
    
    Fair value -Amortized
    
    
    Argentine
    
    
    Book value
    
    
    
    
    
    
    Shareholders
    
    
    Amortized
    
    
    Argentine
    
    
    Book value
    
    
    Unrealized
    
    
    ShareholdersCost U.S.
    
    
    Banking
    
    
    under U.S.
    
    
    Unrealized
    
    
    equity
    
    
    Cost U.S.
    
    
    Banking
    
    
    under U.S.
    
    
    (Loss)/
    
    
    equityGAAP
    
    
    GAAP
    
    
    GAAP
    
    
    (Loss)/Gain
    
    
    adjustment
    
    
    GAAP
    
    
    GAAP
    
    
    GAAP
    
    
    Gain
    
    
    adjustment(In thousands of Ps.)BODEN 2012
Bonds
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    900,970
    
    
    
    1,906,907
    
    
    
    1,731,089
    
    
    
    830,119
    
    
    
    (175,818
    )
  F-76




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Grupo Financiero Galicia S.A. and Subsidiaries
 Notes to the Consolidated Financial Statements
For the years ended December 31, 2010, 2009 and 2008
 (ii) External Notes / Discount Bonds and GDP-Linked Negotiable Securities
         2010
    
    
    2009Book
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    BookValue
    
    
    Fair value -
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Value
    
    
    Fair value -Amortized
    
    
    Argentine
    
    
    Book value
    
    
    
    
    
    
    Shareholders
    
    
    Amortized
    
    
    Argentine
    
    
    Book value
    
    
    
    
    
    
    ShareholdersCost U.S.
    
    
    Banking
    
    
    under U.S.
    
    
    Unrealized
    
    
    equity
    
    
    Cost U.S.
    
    
    Banking
    
    
    under U.S.
    
    
    Unrealized
    
    
    equityGAAP
    
    
    GAAP
    
    
    GAAP
    
    
    (Loss)/Gain
    
    
    Adjustment
    
    
    GAAP
    
    
    GAAP
    
    
    GAAP
    
    
    (Loss)/Gain
    
    
    Adjustment(In thousands of Ps.)Discount Bonds
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    169,915
    
    
    
    598,601
    
    
    
    302,124
    
    
    
    132,209
    
    
    
    (296,477
    )GDP linked
Bonds
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    23,382
    
    
    
    35,748
    
    
    
    
    
    
    
    12,366
  F-77




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Grupo Financiero Galicia S.A. and Subsidiaries
 Notes to the Consolidated Financial Statements
For the years ended December 31, 2010, 2009 and 2008
 (iii) Bonar 2015 Bonds
       2010
    
    
    2009Book
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    BookValue
    
    
    Fair Value 
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Value
    
    
    Fair Value Amortized
    
    
    Argentine
    
    
    Book value
    
    
    
    
    
    
    Shareholders
    
    
    Amortized
    
    
    Argentine
    
    
    Book value
    
    
    
    
    
    
    ShareholdersCost U.S.
    
    
    Banking
    
    
    under U.S.
    
    
    Unrealized
    
    
    equity
    
    
    Cost U.S.
    
    
    Banking
    
    
    under U.S.
    
    
    Unrealized
    
    
    equityGAAP
    
    
    GAAP
    
    
    GAAP
    
    
    (Loss)/Gain
    
    
    Adjustment
    
    
    GAAP
    
    
    GAAP
    
    
    GAAP
    
    
    (Loss)/Gain
    
    
    Adjustment(In thousands of Ps.)Bonar 2015
Bonds
    
    
    527,950
    
    
    
    642,147
    
    
    
    726,643
    
    
    
    198,693
    
    
    
    84,496
    
    
    
    591,548
    
    
    
    358,984
    
    
    
    676,580
    
    
    
    85,032
    
    
    
    317,596
 (*)
    
    Under Argentine banking GAAP, Bonar 2015 are recorded in the captions investment
securities, other receivable from financial brokerage and miscellaneous assets. (iv) Other investments
  2010
    
    
    2009Fair Value 
    
    
    
    
    
    
    
    
    
    
    Fair Value Book Value
    
    
    Book value
    
    
    Shareholderss
    
    
    Book Value
    
    
    Book value
    
    
    ShareholderssArgentine
    
    
    under U.S.
    
    
    Equity
    
    
    Argentine
    
    
    under U.S.
    
    
    EquityBanking GAAP
    
    
    GAAP
    
    
    Adjustment
    
    
    Banking GAAP
    
    
    GAAP
    
    
    Adjustment(in thousands of Ps,)Nues Trust
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    59,909
    
    
    
    75,483
    
    
    
    15,574Almafuerte Trust
    
    
    169,890
    
    
    
    166,723
    
    
    
    (3,167
    )
    
    
    373,313
    
    
    
    335,219
    
    
    
    (38,094
    )Securities issued
by BCRA
    
    
    2,411,393
    
    
    
    2,405,585
    
    
    
    (5,808
    )
    
    
    1,953,676
    
    
    
    1,953,827
    
    
    
    151Total
    
    
    2,581,283
    
    
    
    2,572,308
    
    
    
    (8,975
    )
    
    
    2,386,898
    
    
    
    2,364,529
    
    
    
    (22,369
    )
  F-78




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##### Table of Contents



Grupo Financiero Galicia S.A. and Subsidiaries
 Notes to the Consolidated Financial Statements
For the years ended December 31, 2010, 2009 and 2008
 Nues Trust and Almafuerte Special Fund
      Securities issued by BCRA
   f. Items in process of collection
   g. Compensation related to the payment of deposits
   F-79




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Grupo Financiero Galicia S.A. and Subsidiaries
 Notes to the Consolidated Financial Statements
For the years ended December 31, 2010, 2009 and 2008
    h. Securitizations
  2010
    
    
    2009Book Value
    
    
    Fair Value 
    
    
    U.S. GAAP
    
    
    Book Value
    
    
    Fair Value 
    
    
    U.S. GAAPArgentine
    
    
    Book value
    
    
    Shareholderss
    
    
    Argentine
    
    
    Book value
    
    
    ShareholderssBanking
    
    
    under U.S.
    
    
    Equity
    
    
    Banking
    
    
    under U.S.
    
    
    EquityGAAP
    
    
    GAAP
    
    
    Adjustment
    
    
    GAAP
    
    
    GAAP
    
    
    Adjustment(in thousands of Ps,)Galtrust I (1)
    
    
    521,862
    
    
    
    521,862
    
    
    
    
    
    
    
    584,111
    
    
    
    211,647
    
    
    
    (372,464
    )Financial Trust Galicia (2)
    
    
    96,364
    
    
    
    36,241
    
    
    
    (60,123
    )
    
    
    79,990
    
    
    
    28,692
    
    
    
    (51,298
    )Others
    
    
    13,491
    
    
    
    19,482
    
    
    
    5,991
    
    
    
    56,458
    
    
    
    50,940
    
    
    
    (5,518
    )Total
    
    
    631,717
    
    
    
    577,585
    
    
    
    (54,132
    )
    
    
    720,559
    
    
    
    291,279
    
    
    
    (429,280
    )
 (1) Financial trust Galtrust I
       F-80




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Grupo Financiero Galicia S.A. and Subsidiaries
 Notes to the Consolidated Financial Statements
For the years ended December 31, 2010, 2009 and 2008
         
    
    Insufficient Equity Investment at Risk
 
    
    Equity lacks decision-making rights
 
    
    Equity with non-substantive voting rights
 
    
    Lacking the obligation to Absorb an Entitys Expected Losses
 
    
    Lacking the right to receive an Entitys expected residual returns
    F-81




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Grupo Financiero Galicia S.A. and Subsidiaries
 Notes to the Consolidated Financial Statements
For the years ended December 31, 2010, 2009 and 2008
   (2) Financial Trust Galicia
     BG Financial Trust
   F-82




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Grupo Financiero Galicia S.A. and Subsidiaries
 Notes to the Consolidated Financial Statements
For the years ended December 31, 2010, 2009 and 2008
 Additional information required by U.S. GAAP
  December 31,
    
    
    December 31,2010
    
    
    2009Cash and due from banks
    
    Ps.
    11,626
    
    
    Ps.
    15,220Government securities
    
    
    1,009,154
    
    
    
    Loans (net of allowances)
    
    
    
    
    
    
    463,742Other assets
    
    
    1,149
    
    
    
    8,833Total Assets
    
    Ps.
    1,021,929
    
    
    Ps.
    487,795Debt Securities
    
    Ps.
    414,510
    
    
    Ps.
    279,583Certificates of Participation
    
    
    604,665
    
    
    
    193,321Other liabilities
    
    
    2,754
    
    
    
    14,891Total Liabilities
    
    Ps.
    1,021,929
    
    
    Ps.
    487,795
  
    
    Other transfers of financial assets accounted for as sales under U.S. GAAP
          F-83




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##### Table of Contents



Grupo Financiero Galicia S.A. and Subsidiaries
 Notes to the Consolidated Financial Statements
For the years ended December 31, 2010, 2009 and 2008
 i. Acceptances
   j. Impairment of real estate properties and foreclosed assets
      k. Equity investments in other companies
    F-84




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Grupo Financiero Galicia S.A. and Subsidiaries
 Notes to the Consolidated Financial Statements
For the years ended December 31, 2010, 2009 and 2008
  l. Financial Guarantees
 Exchange of deposits with the financial system II  Written Options.
    Other Financial Guarantees.
   2010Estimated
    
    
    U.S. GAAPMaximum
    
    
    Proceeds
    
    
    CarryingPotential
    
    
    From collateral
    
    
    Amount -Payments (*)
    
    
    Recourse
    
    
    LiabilityFinancial guarantees
    
    
    124,705
    
    
    
    6,822
    
    
    
    125Ps.
    124,705
    
    
    Ps.
    6,822
    
    
    Ps.
    125
 2009Estimated
    
    
    U.S. GAAPMaximum
    
    
    Proceeds
    
    
    CarryingPotential
    
    
    From collateral
    
    
    Amount -Payments (*)
    
    
    Recourse
    
    
    LiabilityFinancial guarantees
    
    
    112,899
    
    
    
    3,719
    
    
    
    152Ps.
    112,899
    
    
    Ps.
    3,719
    
    
    Ps
    152
 (*)
    
    The maximum potential payments represent a worse-case scenario, and do not necessarily
reflect expected results. Estimated proceeds from collateral and recourse represent the anticipated
value of assets that could be liquidated or received from other parties to offset the Companys
payments under guarantees.  F-85




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Grupo Financiero Galicia S.A. and Subsidiaries
 Notes to the Consolidated Financial Statements
For the years ended December 31, 2010, 2009 and 2008
  m. Non-controlling interest
    n. Foreign Debt Restructuring
     F-86




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##### Table of Contents



Grupo Financiero Galicia S.A. and Subsidiaries
 Notes to the Consolidated Financial Statements
For the years ended December 31, 2010, 2009 and 2008
    o. Repurchase Agreements and Reverse Repurchase Agreements (Repos and Reverse Repos)
    p. Fair Value Measurements Disclosures
   Fair Value Hierarchy
   F-87




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##### Table of Contents



Grupo Financiero Galicia S.A. and Subsidiaries
 Notes to the Consolidated Financial Statements
For the years ended December 31, 2010, 2009 and 2008
  
    
    Level 1  inputs to the valuation methodology are quoted prices
(unadjusted) for identical assets or liabilities in active markets.
    
    Level 2  inputs to the valuation methodology include quoted prices for similar assets
and liabilities in active markets, and inputs that are observable for the asset or
liability, either directly or indirectly, for substantially the full term of the asset or
liability.Level 2  inputs include the following:a) Quoted prices for similar assets or liabilities in active markets;b) Quoted prices for identical or similar assets or liabilities in non-active markets;c) Pricing models whose inputs are observable for substantially the full term of the asset
or liability; andd) Pricing models whose inputs are derived principally from or corroborated by
observable market data through correlation or other means
    
    Level 3  inputs to the valuation methodology are unobservable and
significant to the fair value measurement.
  Determination of Fair Value
    Assets
 a) Government securities and other investments
    F-88




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##### Table of Contents



Grupo Financiero Galicia S.A. and Subsidiaries
 Notes to the Consolidated Financial Statements
For the years ended December 31, 2010, 2009 and 2008
 b) Securities receivable under repurchase agreements
  c) Securitizations
   d) Derivatives Financial Instruments
    Liabilities
 e) Securities to be delivered under spot and forward sales to be settled
  f) Derivatives Financial Instruments
     F-89




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##### Table of Contents



Grupo Financiero Galicia S.A. and Subsidiaries
 Notes to the Consolidated Financial Statements
For the years ended December 31, 2010, 2009 and 2008
 Items measured at fair value on a recurring basis
  Internal
    
    
    Internalmodels with
    
    
    models withQuoted
    
    
    significant
    
    
    significantmarket prices
    
    
    observable
    
    
    unobservableTotal
    
    
    in active
    
    
    market
    
    
    marketcarrying
    
    
    markets
    
    
    parameters
    
    
    parametersBalances as of December 31, 2010
    
    value
    
    
    (Level 1)
    
    
    (Level 2)
    
    
    (Level 3)ASSETSa.1) Trading SecuritiesNational Government Securities
    
    Ps.
    68,231
    
    
    Ps.
    68,231
    
    
    Ps.
    
    
    
    Ps.
    a.2) Securities issued by Argentine Central BankSecurities issued by the Argentine Central Bank
    
    
    2,059,915
    
    
    
    2,059,915
    
    
    
    
    
    
    
    a.3) Other Investments (*)
    
    
    166,723
    
    
    
    
    
    
    
    
    
    
    
    166,723a.4) Corporate SecuritiesShares
    
    
    68
    
    
    
    68
    
    
    
    
    
    
    
    Marketable Negotiable Obligations
    
    
    4,484
    
    
    
    4,484
    
    
    
    
    
    
    
    Negotiable Mutual Funds
    
    
    5,750
    
    
    
    5,750
    
    
    
    
    
    
    
    a.5) In Investment Accounts
    
    
    151,356
    
    
    
    151,356
    
    
    
    
    
    
    
    b) Securities receivable under repurchase
agreementsb.1) Securities issued by Argentine Central BankSecurities issued by Argentine Central Bank
    
    
    549,901
    
    
    
    549,901
    
    
    
    
    
    
    
    b.2) In Investment Account
    
    
    575,287
    
    
    
    575,287
    
    
    
    
    
    
    
    c) SecuritizationsDebt Securities
    
    
    19,482
    
    
    
    
    
    
    
    
    
    
    
    19,482Galtrust I  Bogar Bonds (**)
    
    
    783,761
    
    
    
    
    
    
    
    
    
    
    
    783,761d) Derivatives financial instruments
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Foreign exchange contracts
    
    
    5,403
    
    
    
    1,932
    
    
    
    3,471
    
    
    
    TOTAL ASSETS AT FAIR VALUE
    
    
    4,390,361
    
    
    
    3,416,924
    
    
    
    3,471
    
    
    
    969,966LIABILITIES  By Classe) Securities to be delivered under spot and
forward sales to be settled
    
    
    (204,231
    )
    
    
    (204,231
    )
    
    
    
    
    
    
    f) Derivatives financial instrumentsOptions
    
    
    (3,723
    )
    
    
    
    
    
    
    (3,723
    )
    
    
    Foreign exchange contracts
    
    
    (11,085
    )
    
    
    (3,163
    )
    
    
    (7,922
    )
    
    
    TOTAL LIABILITIES AT FAIR VALUE
    
    
    (219,039
    )
    
    
    (207,394
    )
    
    
    (11,645
    )
    
    
    
 (*)
    
    This amount is related to the fair value of certificates of participation held in the
Almafuerte Special Fund(**)
    
    During the year ended December 31, 2010 and as part of the implementation of ASU 2009-16 and
ASU 2009-17, the Group started consolidating Galtrust I. Therefore, the Ps. 783,761 corresponds to
the fair value of the Bogar Bonds recorded as an asset in Galtrust I. In 2009 Galtrust I was not
consolidated and therefore the amount shown as of December 31, 2009 corresponds to the certificate
of participation held by the group in Galtrust I.  F-90




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##### Table of Contents



Grupo Financiero Galicia S.A. and Subsidiaries
 Notes to the Consolidated Financial Statements
For the years ended December 31, 2010, 2009 and 2008
 Internal
    
    
    Internalmodels with
    
    
    models withQuoted
    
    
    significant
    
    
    significantmarket prices
    
    
    observable
    
    
    unobservableTotal
    
    
    in active
    
    
    market
    
    
    marketcarrying
    
    
    markets
    
    
    parameters
    
    
    parametersBalances as of December 31, 2009
    
    value
    
    
    (Level 1)
    
    
    (Level 2)
    
    
    (Level 3)ASSETSa.1) Trading SecuritiesNational Government Securities
    
    Ps.
    266,836
    
    
    Ps.
    266,836
    
    
    Ps.
    
    
    
    Ps.
    a.2) Without Quotation  National Government
SecuritiesCompensatory and Hedge Bond Received
    
    
    938,340
    
    
    
    938,340
    
    
    
    
    
    
    
    Discount Bonds & GDP Linked Negotiable Sec
    
    
    337,872
    
    
    
    337,872
    
    
    
    
    
    
    
    Bonar 2015 Bonds
    
    
    676,580
    
    
    
    676,580
    
    
    
    
    
    
    
    a.3) Securities issued by Argentine Central BankSecurities issued by the Argentine Central Bank
    
    
    1,658,473
    
    
    
    1,658,473
    
    
    
    
    
    
    
    a.4) Other Investments (*)
    
    
    410,702
    
    
    
    
    
    
    
    
    
    
    
    410,702a.5) Corporate SecuritiesShares
    
    
    53
    
    
    
    53
    
    
    
    
    
    
    
    Marketable Negotiable Obligations
    
    
    5,613
    
    
    
    5,613
    
    
    
    
    
    
    
    Negotiable Mutual Funds
    
    
    7,505
    
    
    
    7,505
    
    
    
    
    
    
    
    b) Securities receivable under repurchase
agreementsb.1) Without Quotation  National Government
SecuritiesCompensatory and Hedge Bond Received
    
    
    805,724
    
    
    
    805,724
    
    
    
    
    
    
    
    b.2) Securities issued by Argentine Central BankSecurities issued by Argentine Central Bank
    
    
    226,682
    
    
    
    226,682
    
    
    
    
    
    
    
    c) SecuritizationsDebt Securities and Certificates of Participation
    
    
    50,939
    
    
    
    
    
    
    
    
    
    
    
    50,939Galtrust I  Certificates of participation
    
    
    211,647
    
    
    
    
    
    
    
    
    
    
    
    211,647d) Derivatives financial instrumentsForeign exchange contracts
    
    
    1,040
    
    
    
    
    
    
    
    1,040
    
    
    
    TOTAL ASSETS AT FAIR VALUE
    
    
    5,598,006
    
    
    
    4,923,678
    
    
    
    1,040
    
    
    
    673,288LIABILITIESe) Securities to be delivered under spot and
forward sales to be settled
    
    
    (12,975
    )
    
    
    (12,975
    )
    
    
    
    
    
    
    f) Derivatives financial instrumentsOptions
    
    
    (3,997
    )
    
    
    
    
    
    
    (3,997
    )
    
    
    Foreign exchange contracts
    
    
    (8,060
    )
    
    
    
    
    
    
    (8,060
    )
    
    
    TOTAL LIABILITIES AT FAIR VALUE
    
    
    (25,032
    )
    
    
    (12,975
    )
    
    
    (12,057
    )
    
    
    
 (*)
    
    This amount is related to the fair value of the Certificate of Participation in Nues Trust
of Ps. 75,483 and Ps. 335,219 in the Almafuerte Special Fund.  F-91




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##### Table of Contents



Grupo Financiero Galicia S.A. and Subsidiaries
 Notes to the Consolidated Financial Statements
For the years ended December 31, 2010, 2009 and 2008
 Changes in level 3 fair value measurements
  Galtrust I - Bogar
    
    
    
    
    
    
    
    
    
    
    Total Fair Valuebonds
    
    
    Debt securities
    
    
    Other investments
    
    
    MeasurementsFair value, December 31, 2008
    
    Ps.
    67,881
    
    
     Ps.
    58,177
    
    
     Ps.

    301,486
    
    
    Ps.
    427,544Total gains or losses
(realized/unrealized)
    
    
    143,766
    
    
    
    13,718
    
    
    
    109,216
    
    
    
    266,700Included in earnings
    
    
    
    
    
    
    18,737
    
    
    
    
    
    
    
    18,737Included in other comprehensive income
    
    
    143,766
    
    
    
    (5,019
    )
    
    
    109,216
    
    
    
    247,963Purchases
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Issuances
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Settlements
    
    
    
    
    
    
    (20,956
    )
    
    
    
    
    
    
    (20,956
    )Transfers in to/ out of level 3
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Fair value, December 31, 2009
    
    Ps.
    211,647
    
    
    Ps.
    50,939
    
    
    Ps.
    410,702
    
    
    Ps.
    673,288Total gains or losses
(realized/unrealized)
    
    
    572,114
    
    
    
    (7,265
    )
    
    
    (243,979
    )
    
    
    320,870Included in earnings
    
    
    
    
    
    
    (7,265
    )
    
    
    
    
    
    
    (7,265
    )Included in other comprehensive income
    
    
    572,114
    
    
    
    0
    
    
    
    (243,979
    )
    
    
    328,135Purchases
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Issuances
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Settlements
    
    
    
    
    
    
    (24,192
    )
    
    
    
    
    
    
    (24,192
    )Transfers in to/ out of level 3
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Fair value, December 31, 2010
    
    Ps.
    783,761
    
    
    Ps.
    19,482
    
    
    Ps.
    166,723
    
    

Ps.    969,966
  Total Fair Value MeasurementsBalances as of December 31,
    
    2010
    
    
    2009
    
    
    2008Available for sale securitiesClassification of gains and
losses included in earnings :Financial Income
    
    Ps.
    (7,265
    )
    
    Ps.
    18,737
    
    
    Ps.
    (259,762
    )Total
    
    Ps.
    (7,265
    )
    
    Ps.
    18,737
    
    
    Ps.
    (259,762
    )
   F-92




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##### Table of Contents



Grupo Financiero Galicia S.A. and Subsidiaries
 Notes to the Consolidated Financial Statements
For the years ended December 31, 2010, 2009 and 2008
 q. New authoritative pronouncements
      F-93




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##### Table of Contents



Grupo Financiero Galicia S.A. and Subsidiaries
 Notes to the Consolidated Financial Statements
For the years ended December 31, 2010, 2009 and 2008
    F-94




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##### Table of Contents



Grupo Financiero Galicia S.A. and Subsidiaries
 Notes to the Consolidated Financial Statements
For the years ended December 31, 2010, 2009 and 2008
 Consolidated net income
 December 31,2010
    
    
    2009
    
    
    2008Net income as stated
    
    Ps.
    408,901
    
    
    Ps.
    229,275
    
    
    Ps.
    176,819Loan origination fees and costs (Note 35 b.)
    
    
    7,422
    
    
    
    (51,828
    )
    
    
    10,300Intangible assets:Goodwill amortization and impairment (Note 35 c.)
    
    
    6,928
    
    
    
    11,458
    
    
    
    (77,605
    )Negative goodwill (Note 35 c.)
    
    
    465,634
    
    
    
    
    
    
    
    Software cost (Note 35 c.)
    
    
    (56,259
    )
    
    
    (30,548
    )
    
    
    (24,593
    )Compensation related to the payment of deposits
(Note 35 g.)
    
    
    259,053
    
    
    
    57,821
    
    
    
    (39,850
    )Equity investments in other companies  Impairment
(Note 35 k.)
    
    
    1,810
    
    
    
    (4,731
    )
    
    
    (3,882
    )Loans non Financial Public Sector  Secured
loans (Note 35 d.(i))
    
    
    282
    
    
    
    32,213
    
    
    
    48,228Loan impairment  Private sector (Note 35 d.(ii))
    
    
    1,812
    
    
    
    112,166
    
    
    
    (54,748
    )Securitizations (Note 35 h.)
    
    
    (2,334
    )
    
    
    (18,727
    )
    
    
    (376,975
    )Government Securities and other investments:Compensatory Bond received and Hedge Bond (Note 35
e.(i))
    
    
    1,005,937
    
    
    
    91,438
    
    
    
    (838,609
    )Discount Bonds (Note 35 e.(ii))
    
    
    428,686
    
    
    
    51,587
    
    
    
    (86,849
    )GDP  Linked Negotiable Securities (Note 35 e.(ii))
    
    
    (12,366
    )
    
    
    2,465
    
    
    
    (31,479
    )Bonar 2015 Bonds ( Note 35 e. (iii))
    
    
    (346,761
    )
    
    
    232,564
    
    
    
    Other investments (Note 35 e. (iv))
    
    
    104,908
    
    
    
    
    
    
    
    (110,715
    )Amortization of real estate properties and
foreclosed assets previously impaired under U.S.
GAAP (Note 35 j.)
    
    
    1,395
    
    
    
    1,395
    
    
    
    1,395Recognition for the fair value of obligations
assumed under financial guarantees issued (Note 35
l.)
    
    
    8,361
    
    
    
    31,303
    
    
    
    (35,727
    )Foreign Debt restructuring (Note 35 n.)
    
    
    61,264
    
    
    
    34,111
    
    
    
    29,749Deferred Income tax (Note 35 a.)
    
    
    (249,931
    )
    
    
    101,476
    
    
    
    124,936Minimum Presumed Income Tax (Note 35 a. )
    
    
    328,619
    
    
    
    (44,198
    )
    
    
    (25,906
    )Non-controlling interest (Note 35 m.)
    
    
    104,333
    
    
    
    46,512
    
    
    
    35,812Net income (loss) in accordance with U.S. GAAP
    
    Ps.
    2,527,694
    
    
    Ps.
    885,752
    
    
    Ps.
    (1,279,699
    )Less Net Loss / (Income) attributable to the
Non-controlling Interest (Note 35 m)
    
    
    (234,121
    )
    
    
    (115,529
    )
    
    
    108,721Net Income (Loss) attributable to Parent Company in
accordance with U.S. GAAP
    
    Ps.
    2,293,573
    
    
    Ps.
    770,223
    
    
    Ps.
    (1,170,978
    )Average number of shares outstanding (in thousands)
(Note 21)
    
    
    1,241,407
    
    
    
    1,241,407
    
    
    
    1,241,407Basic net income (loss) per share in accordance
with U.S. GAAP (Note 21)
    
    
    1,848
    
    
    
    0.620
    
    
    
    (0.943
    )Diluted net income (loss) per share in accordance
with U.S. GAAP (Note 21)
    
    
    1,848
    
    
    
    0.620
    
    
    
    (0.943
    )
  F-95




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##### Table of Contents



Grupo Financiero Galicia S.A. and Subsidiaries
 Notes to the Consolidated Financial Statements
For the years ended December 31, 2010, 2009 and 2008
 Consolidated shareholders equity
 December 31,2010
    
    
    2009Shareholders equity as stated
    
    Ps.
    2,469,500
    
    
    Ps.
    2,052,539Loan origination fees and costs (Note 35 b.)
    
    
    (84,642
    )
    
    
    (92,064
    )Intangible assets:Goodwill amortization and impairment (Note 35 c.)
    
    
    32,135
    
    
    
    25,207Negative Goodwill (Note 35 c.)
    
    
    465,634
    
    
    
    Software Cost (Note 35 c.)
    
    
    (133,613
    )
    
    
    (77,354
    )Compensation related to the payment of deposits
(Note 35 g.)
    
    
    
    
    
    
    (259,053
    )Equity investments in other companies  Impairment
(Note 35 k.)
    
    
    (29,738
    )
    
    
    (31,548
    )Loans non Financial Public Sector  Secured loans
(Note 35 d.(i))
    
    
    
    
    
    
    (282
    )Loan impairment  Private sector (Note 35 d.(ii))
    
    
    65,483
    
    
    
    63,671Government securities and other investments:Compensatory and Hedge Bond received (Note 35 e.(i))
    
    
    
    
    
    
    (175,818
    )Discount Bonds (Note 35 e.(ii))
    
    
    
    
    
    
    (296,477
    )GDP  Linked Negotiable Securities (Note 35 e. (ii))
    
    
    
    
    
    
    12,366Bonar 2015 Bonds (Note 35 e. (iii))
    
    
    84,496
    
    
    
    317,596Other Investments (Note 35 e. (iv))
    
    
    (8,975
    )
    
    
    (22,369
    )Securitizations (Note 35 h.)
    
    
    (54,132
    )
    
    
    (429,280
    )Impairment of real estate properties and foreclosed
assets (Note 35 j.)
    
    
    (67,155
    )
    
    
    (67,155
    )Amortization of real estate properties and
foreclosed assets previously impaired under U.S.
GAAP (Note 35 j.)
    
    
    11,160
    
    
    
    9,765Minimum Presumed Income Tax (Note 35 a.)
    
    
    
    
    
    
    (328,619
    )Deferred Income tax (Note 35 a.)
    
    
    326,779
    
    
    
    576,710Recognition for the fair value of obligations
assumed under financial guarantees issued (Note 35
l.)
    
    
    (3,848
    )
    
    
    (4,149
    )Foreign debt restructuring (Note 35 n.)
    
    
    (76,008
    )
    
    
    (137,272
    )Non-controlling interest (Note 35m.)
    
    
    382,211
    
    
    
    288,569Consolidated shareholders equity (deficit) in
accordance with U.S. GAAP
    
    Ps.
    3,379,287
    
    
    Ps.
    1,424,983Non-controlling Interest (Note 35 m.)
    
    
    (382,220
    )
    
    
    (188,661
    )Consolidated Parent Company Shareholders Equity
(Deficit) in accordance with U.S. GAAP
    
    Ps.
    2,997,067
    
    
    Ps.
    1,236,322
  F-96




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##### Table of Contents



Grupo Financiero Galicia S.A. and Subsidiaries
 Notes to the Consolidated Financial Statements
For the fiscal years ended December 31, 2010, 2009 and 2008
  Other
    
    
    
    
    
    
    TotalAdjustments to
    
    
    
    
    
    
    
    
    
    
    Comprehensive
    
    
    (Accumulated
    
    
    ShareholdersCapital
    
    
    Paid
    
    
    Shareholders
    
    
    Profit reserves
    
    
    Income
    
    
    deficit) /Retained
    
    
    Equity Parent
    
    
    Non controllingStock
    
    
    in Capital
    
    
    Equity
    
    
    Legal
    
    
    Other
    
    
    (loss)
    
    
    Earnings
    
    
    Company
    
    
    interestBalance at December 31, 2007
    
    Ps.
    1,241,407
    
    
    Ps.
    606
    
    
    Ps.
    294,254
    
    
    Ps.
    34,855
    
    
    Ps.
    53,469
    
    
    Ps.
    (143,821
    )
    
    Ps.
    (1,242,688
    )
    
    Ps.
    238,082
    
    
    Ps.
    (115,916
    )Distribution of retained earnings:Absorption approved by the shareholders meeting on April 29,2008Legal Reserve
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    2,302
    
    
    
    
    
    
    
    
    
    
    
    (2,302
    )
    
    
    
    
    
    
    Discretionary Reserve
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    43,735
    
    
    
    
    
    
    
    (43,735
    )
    
    
    
    
    
    
    Unrealized gain of available-for-sale securities, net of tax
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    178,483
    
    
    
    
    
    
    
    178,483
    
    
    
    7,195Net Income (Loss) in accordance with U.S. GAAP
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (1,170,978
    )
    
    
    (1,170,978
    )
    
    
    108,721Balance at December 31, 2008
    
    Ps.
    1,241,407
    
    
    Ps.
    606
    
    
    Ps.
    294,254
    
    
    Ps.
    37,157
    
    
    Ps.
    97,204
    
    
    Ps.
    34,662
    
    
    Ps.
    (2,459,703
    )
    
    Ps.
    (754,413
    )
    
    Ps.
    Distribution of retained earnings:Absorption approved by the shareholders meeting on April 28,2009Legal Reserve
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    8,841
    
    
    
    
    
    
    
    
    
    
    
    (8,841
    )
    
    
    
    
    
    
    Discretionary Reserve
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    167,978
    
    
    
    
    
    
    
    (167,978
    )
    
    
    
    
    
    
    Net, unrealized gain / (loss) of available-for-sale securities, net of tax
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    1,220,512
    
    
    
    
    
    
    
    1,220,512
    
    
    
    (73,132
    )Net Income (Loss) in accordance with U.S. GAAP
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    770,223
    
    
    
    770,223
    
    
    
    (115,529
    )Balance at December 31, 2009
    
    Ps.
    1,241,407
    
    
    Ps.
    606
    
    
    Ps.
    294,254
    
    
    Ps.
    45,998
    
    
    Ps.
    265,182
    
    
    Ps.
    1,255,174
    
    
    Ps.
    (1,866,299
    )
    
    Ps.
    1,236,322
    
    
    Ps.
    (188,661
    )Distribution of retained earnings:Absorption approved by the shareholders meeting on April 28,2010Legal Reserve
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    11,464
    
    
    
    
    
    
    
    
    
    
    
    (11,464
    )
    
    
    
    
    
    
    Discretionary Reserve
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    217,811
    
    
    
    
    
    
    
    (217,811
    )
    
    
    
    
    
    
    Net, unrealized gain / (loss) of available-for-sale securities, net of tax
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (532,828
    )
    
    
    
    
    
    
    (532,828
    )
    
    
    40,562Net Income (Loss) in accordance with U.S. GAAP
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    2,293,573
    
    
    
    2,293,573
    
    
    
    (234,121
    )Balance at December 31, 2010
    
    Ps.
    1,241,407
    
    
    Ps.
    606
    
    
    Ps.
    294,254
    
    
    Ps.
    57,462
    
    
    Ps.
    482,993
    
    
    Ps.
    722,346
    
    
    Ps.
    197,999
    
    
    Ps.
    2,997,067
    
    
    Ps.
    (382,220
    )
 Comprehensive income
   F-97




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##### Table of Contents



Grupo Financiero Galicia S.A. and Subsidiaries
 Notes to the Consolidated Financial Statements
For the fiscal years ended December 31, 2010, 2009 and 2008
  December 31,2010
    
    
    2009
    
    
    2008Income StatementFinancial Income
    
    Ps.
    4,779,236
    
    
    Ps.
    3,374,800
    
    
    Ps.
    1,201,697Financial Expenditures
    
    
    1,343,357
    
    
    
    1,434,408
    
    
    
    1,391,270Net Financial Income (Loss)
    
    
    3,435,879
    
    
    
    1,940,392
    
    
    
    (189,573
    )Provision for Loan Losses
    
    
    549,712
    
    
    
    527,339
    
    
    
    450,137Income from Services
    
    
    2,506,687
    
    
    
    1,802,381
    
    
    
    1,538,380Expenditures from Services
    
    
    721,124
    
    
    
    515,648
    
    
    
    383,654Administrative Expenses
    
    
    2,881,200
    
    
    
    2,063,546
    
    
    
    1,799,579Net Income / (Loss) from Financial Brokerage
    
    
    1,790,530
    
    
    
    636,240
    
    
    
    (1,284,563
    )Miscellaneous Income
    
    
    1,542,945
    
    
    
    594,630
    
    
    
    494,977Miscellaneous Losses
    
    
    297,659
    
    
    
    290,602
    
    
    
    541,035Net Income / (Loss) before Income tax
    
    
    3,035,816
    
    
    
    940,268
    
    
    
    (1,330,621
    )Income Tax
    
    
    508,122
    
    
    
    54,516
    
    
    
    (50,922
    )Net income (loss) under U.S. GAAP
    
    
    2,527,694
    
    
    
    885,752
    
    
    
    (1,279,699
    )Less Net (Income) / Loss attributable to
the Non-controlling Interest
    
    
    (234,121
    )
    
    
    (115,529
    )
    
    
    108,721Net Income / (Loss) attributable to Parent
Company
    
    
    2,293,573
    
    
    
    770,223
    
    
    
    (1,170,978
    )Other comprehensive income (loss):Unrealized gains (losses) on securities, net
    
    
    (532,828
    )
    
    
    1,220,512
    
    
    
    178,483Other comprehensive income (loss), net
    
    
    (532,828
    )
    
    
    1,220,512
    
    
    
    178,483Comprehensive income (Loss)
    
    Ps.
    1,760,745
    
    
    Ps.
    1,990,735
    
    
    Ps.
    (992,495
    )
  December 31,2010
    
    
    2009
    
    
    2008Boden 2012 Bonds  Compensatory Bond
(1)
    
    
    
    
    
    
    830,119
    
    
    
    GalTrust I (2)
    
    
    566,115
    
    
    
    193,651
    
    
    
    Discount Bonds (3)
    
    
    
    
    
    
    132,209
    
    
    
    Bonar 2015 Bonds
    
    
    198,693
    
    
    
    85,032
    
    
    
    Other
    
    
    (3,167
    )
    
    
    83,329
    
    
    
    26,549Accumulated other comprehensive income
    
    Ps.
    761,641
    
    
    Ps.
    1,324,340
    
    
    Ps.
    26,549Less, accumulated other comprehensive
income attributable to the
Non-controlling interest
    
    
    (39,295
    )
    
    
    (69,166
    )
    
    
    8,113Net accumulated other comprehensive
income attributable to Parent Company
    
    Ps.
    722,346
    
    
    Ps.
    1,255,174
    
    
    Ps.
    34,662
  F-98




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##### Table of Contents



Grupo Financiero Galicia S.A. and Subsidiaries
 Notes to the Consolidated Financial Statements
For the fiscal years ended December 31, 2010, 2009 and 2008
 (1)
    
    During the year ended December 31, 2010, the group sold all it position in Boden 2012
Bonds  Compensatory Bonds, generated a gain of Ps.1,005,937 recorded under the caption
Financial Income in the consolidated income Statement Under U.S. GAAP.(2)
    
    In 2010, the Group adopted ASU 2009-16 and ASU 2009-17. Under these new standards, the
Group started consolidated Galtrust I, including the Bogar Bonds for an amount of
Ps.783,761 recorded as assets in such trust. Prior to 2010, the Group only recorded the
Certificates of Participation it held in such trust.(3)
    
    During the year ended December 31, 2010, the group sold all it position in Discount
Bonds, generated a gain of Ps.428,686 recorded under the caption Financial Income in the
consolidated income Statement Under U.S. GAAP   F-99




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##### Table of Contents



Grupo Financiero Galicia S.A. and Subsidiaries
 Notes to the Consolidated Financial Statements
For the fiscal years ended December 31, 2010, 2009 and 2008
 Concentration of risk  Total exposure to the public sector  Argentine government and provinces
  December 31, 2010
    
    
    December 31, 2009Argentine
    
    
    
    
    
    
    ArgentineBanking
    
    
    
    
    
    
    BankingGAAP
    
    
    U.S. GAAP
    
    
    GAAP
    
    
    U.S. GAAPArgentine
national government
loans
    
    Ps.
    21,397
    
    
    Ps.
    21,397
    
    
    Ps.
    25,416
    
    
    Ps.
    25,134Other Argentine
public-sector
receivables
    
    
    266,254
    
    
    
    202,964
    
    
    
    344,842
    
    
    
    271,024Galtrust I
(securitization of
Provincial Loans)
    
    
    515,966
    
    
    
    515,966
    
    
    
    579,730
    
    
    
    207,266Compensatory bond
received
    
    
    
    
    
    
    
    
    
    
    1,906,907
    
    
    
    1,731,089Securities issued
by the Argentine
Central Bank
    
    
    2,411,393
    
    
    
    2,405,585
    
    
    
    1,953,676
    
    
    
    1,953,827Discount Bonds &
GDP Linked
Negotiable
Securities
    
    
    
    
    
    
    
    
    
    
    621,983
    
    
    
    337,872Bonar 2015 Bonds
    
    
    642,147
    
    
    
    726,643
    
    
    
    358,984
    
    
    
    676,580Other (1)
    
    
    87,289
    
    
    
    87,289
    
    
    
    91,420
    
    
    
    91,420Total
    
    Ps.
    3,944,446
    
    
    Ps.
    3,959,844
    
    
    Ps.
    5,882,958
    
    
    Ps.
    5,294,212
 (1)
    
    Includes bonds and other national government bonds. Risks and Uncertainties
      F-100




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##### Table of Contents



Grupo Financiero Galicia S.A. and Subsidiaries
 Notes to the Consolidated Financial Statements
For the fiscal years ended December 31, 2010, 2009 and 2008
 Allowance for loan losses
  U.S. GAAP estimates
  36. Parent only Financial Statements
   F-101




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##### Table of Contents



Grupo Financiero Galicia S.A. and Subsidiaries
 Notes to the Consolidated Financial Statements
For the fiscal years ended December 31, 2010, 2009 and 2008
 Balance sheet (Parent Company only)
 December 31,2010
    
    
    2009ASSETSA. Cash and due from BanksCash
    
    Ps.
    11
    
    
    Ps.
    11Financial institutions and correspondents
    
    
    819
    
    
    
    63Ps.
    830
    
    
    Ps.
    74B. Government and corporate securitiesHoldings of trading securities
    
    
    
    
    
    
    Investments in listed corporate securities
    
    
    
    
    
    
    13,118Ps.
    
    
    
    Ps.
    13,118C. LoansTo the financial sector
    
    
    57,857
    
    
    
    52,757Ps.
    57,857
    
    
    Ps.
    52,757D. Other receivables resulting from financial brokerageNegotiable obligations without quotation
    
    
    
    
    
    
    Balances from forward transactions without delivery of
underlying asset to be settled
    
    
    
    
    
    
    Other receivables not included in the debtor classification
Regulations
    
    
    1,198
    
    
    
    1,786Other receivables included in the debtor classification
Regulations
    
    
    25,268
    
    
    
    17,381Accrued interest receivable included in the debtor
Classification regulations
    
    
    2
    
    
    
    181Ps.
    26,468
    
    
    Ps.
    19,348F. Equity investmentsIn financial institutions
    
    
    2,522,197
    
    
    
    2,072,245Other
    
    
    88,948
    
    
    
    84,812Ps.
    2,611,145
    
    
    Ps.
    2,157,057G. Miscellaneous receivablesTax on minimum presumed income  Tax credit
    
    
    
    
    
    
    908Other
    
    
    1,428
    
    
    
    2,980Ps.
    1,428
    
    
    Ps.
    3,888H. Bank premises and equipment
    
    
    1,012
    
    
    
    2,993J. Intangible assetsGoodwill
    
    
    12,766
    
    
    
    9,697Organization and development expenses
    
    
    36
    
    
    
    26Ps.
    12,802
    
    
    Ps.
    9,723Total Assets
    
    Ps.
    2,711,542
    
    
    Ps.
    2,258,958
  F-102




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##### Table of Contents



Grupo Financiero Galicia S.A. and Subsidiaries
 Notes to the Consolidated Financial Statements
For the fiscal years ended December 31, 2010, 2009 and 2008
 December 31,2010
    
    
    2009LIABILITIES AND SHAREHOLDERS EQUITYN. Other liabilities resulting from financial brokerageBanks and international entities
    
    Ps.
    
    
    
    Ps.
    Unsubordinated negotiable obligations
    
    
    221,048
    
    
    
    166,056Balances from forward transactions without delivery of underlying asset to be settled
    
    
    7,830
    
    
    
    8,060Accrued interest and quotation differences payable
    
    
    2,133
    
    
    
    930231,011
    
    
    
    175,046O. Miscellaneous liabilitiesDirectors and Syndics fees
    
    Ps.
    195
    
    
    Ps.
    225Other
    
    
    10,836
    
    
    
    31,14811,031
    
    
    
    31,373Total Liabilities
    
    Ps.
    242,042
    
    
    Ps.
    206,419SHAREHOLDERS EQUITY
    
    Ps.
    2,469,500
    
    
    Ps.
    2,052,539Total Liabilities and Shareholders Equity
    
    Ps.
    2,711,542
    
    
    Ps.
    2,258,958
  F-103




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##### Table of Contents



Grupo Financiero Galicia S.A. and Subsidiaries
 Notes to the Consolidated Financial Statements
For the fiscal years ended December 31, 2010, 2009 and 2008
 Statement of Income (Parent Company only)
 December 31,2010
    
    
    2009
    
    
    2008A. Financial incomeInterest on loans granted to the financial sector
    
    
    181
    
    
    
    120
    
    
    
    97Interest on other loans
    
    
    
    
    
    
    
    
    
    
    Interest on other receivables resulting from financial brokerage
    
    
    54
    
    
    
    74
    
    
    
    314Net income from government and corporate securities
    
    
    161
    
    
    
    484
    
    
    
    126Exchange rate differences on gold and foreign currency
    
    
    
    
    
    
    16,120
    
    
    
    Other
    
    
    
    
    
    
    27
    
    
    
    Ps.
    396
    
    
    Ps.
    16,825
    
    
    Ps.
    537B. Financial expensesInterest on other liabilities resulting from financial brokerage
    
    Ps.
    18,796
    
    
    Ps.
    11,071
    
    
    Ps.
    17,062Exchange rate differences on gold and foreign currency
    
    
    23,221
    
    
    
    
    
    
    
    11,258Other
    
    
    243
    
    
    
    266
    
    
    
    280Ps.
    42,260
    
    
    Ps.
    11,337
    
    
    Ps.
    28,600C. Gross brokerage margin
    
    
    (41,864
    )
    
    
    5,488
    
    
    
    (28,063
    )F. Administrative expensesPersonnel expenses
    
    
    6,338
    
    
    
    3,786
    
    
    
    3,492Directors and syndics fees
    
    
    1,362
    
    
    
    1,080
    
    
    
    1,013Other fees
    
    
    4,144
    
    
    
    5,125
    
    
    
    3,182Taxes
    
    
    2,993
    
    
    
    6,984
    
    
    
    1,208Other operating expenses
    
    
    717
    
    
    
    685
    
    
    
    521Other
    
    
    7,559
    
    
    
    5,558
    
    
    
    5,080Ps.
    23,113
    
    
    Ps.
    23,218
    
    
    Ps.
    14,496Net Income from financial brokerage
    
    Ps.
    (64,977
    )
    
    Ps.
    (17,730
    )
    
    Ps.
    (42,559
    )H. Miscellaneous incomeNet income from equity investments
    
    
    473,918
    
    
    
    188,069
    
    
    
    219,688Other
    
    
    2,722
    
    
    
    86,090
    
    
    
    1,557Ps.
    476,640
    
    
    Ps.
    274,159
    
    
    Ps.
    221,245I. Miscellaneous lossesOther
    
    
    2,733
    
    
    
    2,401
    
    
    
    3,952Ps.
    2,733
    
    
    Ps.
    2,401
    
    
    Ps.
    3,952Net Income before tax
    
    
    408,930
    
    
    
    254,028
    
    
    
    174,734J. Income tax
    
    Ps.
    29
    
    
    Ps.
    24,753
    
    
    Ps.
    (2,085
    )Net income for the fiscal year
    
    Ps.
    408,901
    
    
    Ps.
    229,275
    
    
    Ps.
    176,819
 (1)
    
    Includes the foreign currency position compensation.  F-104




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##### Table of Contents



Grupo Financiero Galicia S.A. and Subsidiaries
 Notes to the Consolidated Financial Statements
For the fiscal years ended December 31, 2010, 2009 and 2008
 Statement of cash flows (Parent Company only)
 December 31,2010
    
    
    2009
    
    
    2008CHANGES IN CASH AND CASH EQUIVALENTSCash and cash equivalents at the beginning of the year
    
    Ps.
    19,422
    
    
    Ps.
    27,562
    
    
    Ps.
    26,407Increase / (decrease) in cash and cash equivalents
    
    
    7,876
    
    
    
    (8,140
    )
    
    
    1,155Cash and cash equivalents at end of year
    
    
    27,298
    
    
    
    19,422
    
    
    
    27,562Cash and cash equivalents provided by (used in)
operating activitiesLess:Operating expenses paid
    
    
    (31,706
    )
    
    
    (27,160
    )
    
    
    (15,349
    )Income Tax payment and prepayment
    
    
    (21,822
    )
    
    
    
    
    
    
    Plus:Other operating income received
    
    
    1,132
    
    
    
    2,996
    
    
    
    5,294Cash and cash equivalents provided by (used in)
operating activities
    
    Ps.
    (52,396
    )
    
    Ps.
    (24,164
    )
    
    Ps.
    (10,055
    )Other sources of cash and cash equivalentsCollection for the issuance of negotiable obligations
    
    
    168,745
    
    
    
    160,345
    
    
    
    Loan received
    
    
    
    
    
    
    
    
    
    
    Dividends
    
    
    18,813
    
    
    
    15,969
    
    
    
    12,163Increase in short-term investment
    
    
    
    
    
    
    4,022
    
    
    
    1,676Collection of deposit as per Decree 616/2005
    
    
    
    
    
    
    
    
    
    
    72,360Collection for sale of fixed assets
    
    
    8,385
    
    
    
    
    
    
    
    Other sources of cash and cash equivalents
    
    
    2,675
    
    
    
    581
    
    
    
    1,806Other sources of cash and cash equivalents
    
    Ps.
    198,618
    
    
    Ps.
    180,917
    
    
    Ps.
    88,005Other uses of cash and cash equivalentsPayment of loans received
    
    
    (134,030
    )
    
    
    (152,772
    )
    
    
    (76,760
    )Increase in fixed assets
    
    
    (246
    )
    
    
    (39
    )
    
    
    (24
    )Increase in long-term investments
    
    
    (4,070
    )
    
    
    (12,082
    )
    
    
    (11
    )Total other uses of cash and cash equivalents
    
    Ps.
    (138,346
    )
    
    Ps.
    (164,893
    )
    
    Ps.
    (76,795
    )Increase / (decrease) in cash and cash equivalents
    
    Ps.
    7,876
    
    
    Ps.
    (8,140
    )
    
    Ps.
    1,155
   F-105