TRADUCCION PUBLICA

Grupo Financiero Galicia S.A.
"Corporation  which has not  adhered to the  Optional  System for the  Mandatory
Acquisition of Shares in a Public Offering"

Financial Statements
For the period of three months
ended March 31, 2003
presented in comparative format

<PAGE>
                         Grupo Financiero Galicia S.A.
        "Corporation which has not adhered to the Optional System for the
              Mandatory Acquisition of Shares in a Public Offering"
                               Table of Contents
                 Financial Statements and Limited Review Report
                        presented in comparative format
                  Report of the Supervisory Syndics Committee
              For the period of three months ended March 31, 2003.
                             System established by
     Technical Regulations (N.T.2001) of the National Securities Commission

Heading                                                                       1

Consolidated Statement of Financial Condition                                 2

Consolidated Memorandum Accounts                                              5

Consolidated Income Statement                                                 6

Consolidated Statement of Cash Flows                                          8

Notes to the Consolidated Financial Statements                                9

Statement of Financial Condition                                             53

Income Statement                                                             54

Statement of Changes in Shareholders' Equity                                 55

Statement of Cash Flows                                                      56

Notes to the Financial Statements                                            57

Schedules                                                                    94

Information  required  in  addition  to the  Notes  to  the  Financial
Statements   by  Section  68  of  the  Buenos  Aires  Stock   Exchange
regulations                                                                 101

Supplementary  and  Explanatory  Statement  by the Board of  Directors
required  by Section 2 of the  Accounting  Documentation  Rules of the
Cordoba Stock Exchange Regulations                                          104

Informative Review                                                          107

Report of the Supervisory Syndics Committee

Limited Review Report

<PAGE>
Name:                         Grupo Financiero Galicia S.A.
Legal domicile:               Tte. Gral. Juan D. Peron  N(0)456 - Piso 2(0)
                              Autonomous City of Buenos Aires

Principal line of business:   Financial and Investment activities

5th fiscal year
For the period of three months ended March 31, 2003,
presented in comparative format


DATE OF REGISTRATION WITH THE PUBLIC REGISTRY OF COMMERCE

By-laws:                      September 30, 1999

Date of more recent amendment
to By-laws:                   July 3, 2001

Registration number with the
Corporation Control
Authority:                    8,569

Sequential Number -
Corporation Control
Authority:                    1,671,058

Date of expiry of the
Company's by-laws:            June 30, 2100

Name of Controlling Company:  EBA HOLDING S.A.

Principal line of business:   Financial and Investment activities

Interest held by the
Controlling Company in the
Shareholders' equity as of
March 31, 2003:               25.74%

Percentage of votes to which
the Controlling Company is
entitled as of March 31,
2003:                         63.42%

<TABLE>
<CAPTION>
===========================================================================================================
                 CAPITAL STATUS as of March 31, 2003 (Note 8 to the Financial Statements)
                                (figures stated in thousands of US dollars)
-----------------------------------------------------------------------------------------------------------
                                                   Shares
-----------------------------------------------------------------------------------------------------------
   Quantity                    Type             Voting rights per        Subscribed              Paid up
                                                      share
-----------------------------------------------------------------------------------------------------------
<S>                  <C>                        <C>                      <C>                    <C>
                     Ordinary  class "A", face
  281,221,650        value of 0.0003                    5                  94,370                 94,370
-----------------------------------------------------------------------------------------------------------
                     Ordinary  class "B", face
  811,185,367        value of 0.0003                    1                 272,210                272,210
-----------------------------------------------------------------------------------------------------------

1,092,407,017                                                             366,580                366,580
===========================================================================================================
</TABLE>

                                        1
<PAGE>
                         Grupo Financiero Galicia S.A.
   "Corporation which has not adhered to the Optional System for the Mandatory
                   Acquisition of Shares in a Public Offering"
                      Supplementary Accounting Information
                 Consolidated Statement of Financial Condition
                   as of March 31, 2003 and December 31, 2002
                  (figures stated in thousands of US dollars)

<TABLE>
<CAPTION>
                                                                                        3.31.03              12.31.02
                                                                                  -------------------------------------------
<S>                                                                               <C>                      <C>
ASSETS
A.   CASH AND DUE FROM BANKS                                                            192,326               183,256
                                                                                  -------------------------------------------
      -Cash                                                                              83,411                81,311
      -Banks and correspondents                                                         108,603               101,827
      -Other                                                                                312                   118
                                                                                  -------------------------------------------
B.   GOVERNMENT AND CORPORATE SECURITIES                                                551,552               613,626
                                                                                  -------------------------------------------
     -Holdings of investment account securities                                         491,716               561,398
     -Holdings of trading securities                                                      1,592                 2,163
     -Unlisted government securities                                                     57,376                49,206
     -Investments in listed corporate securities                                          2,855                 3,166
     -Allowances                                                                         (1,987)               (2,307)
                                                                                  -------------------------------------------
C.   LOANS                                                                            3,166,494             3,216,256
                                                                                  -------------------------------------------
     -To the non-financial public sector                                              2,549,389             2,580,544
     -To the financial sector                                                            52,807                45,216
     -To the non-financial private sector and residents abroad                          996,002             1,070,155
      -Overdrafts                                                                        68,058                71,676
      -Notes                                                                            278,771               311,032
      -Mortgage loans                                                                   237,167               256,108
      -Pledge loans                                                                      16,684                20,254
      -Consumer loans                                                                    28,954                40,263
      -Credit cards                                                                     193,503               196,019
      -Other                                                                             54,321                57,744
      -Accrued Interest and quotation differences receivable                            122,784               121,429
      -Documented interest                                                               (3,548)               (3,635)
      -Unallocated collections                                                             (692)                 (735)
     -Allowances for loan losses                                                        (431,704)            (479,659)
                                                                                  -------------------------------------------
D.   OTHER RECEIVABLES RESULTING FROM FINANCIAL BROKERAGE                              2,706,582            3,101,531
                                                                                  -------------------------------------------
     -Argentine Central Bank                                                              22,455                18,761
     -Amounts receivable for spot and forward sales to be settled                             47                   645
     -Securities receivable under spot and forward purchases to be settled                    46                   227
     -Unlisted negotiable obligations                                                     49,639                55,166
     -Other receivables not included in the debtor classification regulations          2,487,973             2,798,170
     -Other receivables included in the debtor classification regulations                118,138               235,219
     -Accrued interest receivable not included in the debtor classification
      regulations                                                                         36,547                 2,300
     -Accrued interest receivable included in the debtor classification
      regulations                                                                          2,968                   340
     -Allowances                                                                         (11,231)               (9,297)
</TABLE>

The accompanying Notes 1 to 20 are an integral part of these financial
statements.

                                       2
<PAGE>
                         Grupo Financiero Galicia S.A.
   "Corporation which has not adhered to the Optional System for the Mandatory
                   Acquisition of Shares in a Public Offering"
                      Supplementary Accounting Information
                 Consolidated Statement of Financial Condition
                   as of March 31, 2003 and December 31, 2002
                  (figures stated in thousands of US dollars)

<TABLE>
<CAPTION>
                                                                                        3.31.03              12.31.02
                                                                                  -------------------------------------------
<S>                                                                               <C>                      <C>
E.   ASSETS UNDER FINANCIAL LEASES                                                        6,990                 7,597
                                                                                   -------------------------------------------
     -Assets under financial leases                                                       7,786                 8,423
     -Allowances                                                                           (796)                 (826)
                                                                                   -------------------------------------------
F.   EQUITY INTERESTS IN OTHER COMPANIES                                                 31,601                34,985
                                                                                   -------------------------------------------
     -In financial institutions                                                          87,057                87,955
     -Other                                                                              50,407                51,547
     -Allowances                                                                       (105,863)             (104,517)
                                                                                   -------------------------------------------
G.   MISCELLANEOUS RECEIVABLES                                                          136,072               107,882
                                                                                   -------------------------------------------
     -Receivables for assets sold                                                            90                   222
     -Other                                                                             126,394               117,462
     -Accrued interest on receivables for assets sold                                         1                     1
     -Other accrued interest receivable                                                  19,336                    54
     -Allowances                                                                         (9,749)               (9,857)
                                                                                   -------------------------------------------
H.   FIXED ASSETS                                                                       181,597               186,018
                                                                                   -------------------------------------------
I.   MISCELLANEOUS ASSETS                                                                57,643                61,197
                                                                                   -------------------------------------------
J.   INTANGIBLE ASSETS                                                                  256,514               107,367
                                                                                   -------------------------------------------
     -Goodwill                                                                           53,223                56,617
     -Organization and development expenses                                             203,291                50,750
                                                                                   -------------------------------------------
K.   UNALLOCATED ITEMS                                                                    5,751                 7,893
                                                                                   -------------------------------------------
     TOTAL ASSETS                                                                     7,293,122             7,627,608
                                                                                   ===========================================
</TABLE>

The accompanying Notes 1 to 20 are an integral part of these financial
statements.

                                       3
<PAGE>
                         Grupo Financiero Galicia S.A.
   "Corporation which has not adhered to the Optional System for the Mandatory
                   Acquisition of Shares in a Public Offering"
                      Supplementary Accounting Information
                 Consolidated Statement of Financial Condition
                   as of March 31, 2003 and December 31, 2002
                  (figures stated in thousands of US dollars)

<TABLE>
<CAPTION>
                                                                                         3.31.03              12.31.02
                                                                                   -------------------------------------------
<S>                                                                                <C>                    <C>
LIABILITIES
                                                                                   -------------------------------------------
L.   DEPOSITS                                                                          1,599,524             1,588,222
                                                                                   -------------------------------------------
     -Non-financial public sector                                                          1,020                 2,626
     -Financial sector                                                                       972                   989
     -Non-financial private sector and residents abroad                                1,597,532             1,584,607
      -Current accounts                                                                  247,727               247,836
      -Savings accounts                                                                  127,461               115,892
      -Time deposits                                                                     702,131               734,518
      -Other                                                                             380,996               350,580
      -Accrued interest and quotation differences payable                                139,217               135,781
                                                                                   -------------------------------------------
M.   OTHER LIABILITIES RESULTING FROM FINANCIAL BROKERAGE                              4,737,751             4,975,287
                                                                                   -------------------------------------------
     -Argentine Central Bank                                                           2,718,260             2,720,156
      -Rediscounts to cover lack of liquidity                                          1,867,291             1,828,819
      -Other                                                                             850,969               891,337
     -Banks and international entities                                                   933,367             1,068,694
     -Unsubordinated negotiable obligations                                              551,180               635,958
     -Amounts payable for spot and forward purchases to be settled                            45                   716
     -Securities to be delivered under spot and forward sales to be settled               36,096                41,789
     -Loans from domestic financial institutions                                          62,657                67,541
     -Other                                                                              315,651               347,000
     -Accrued interest and quotation differences payable                                 120,495                93,433
                                                                                   -------------------------------------------
N.   MISCELLANEOUS LIABILITIES                                                            85,946                83,861
                                                                                   -------------------------------------------
     -Dividends payable                                                                       15                    15
     -Fees                                                                                   956                   743
     -Other                                                                               84,975                83,103
                                                                                   -------------------------------------------
O.   PROVISIONS                                                                          302,950               398,735
                                                                                   -------------------------------------------
P.   UNALLOCATED ITEMS                                                                     1,166                 3,503
                                                                                   -------------------------------------------
MINORITY INTEREST IN CONSOLIDATED ENTITIES OR COMPANIES                                   29,479                28,122
                                                                                   -------------------------------------------
          TOTAL LIABILITIES                                                            6,756,816             7,077,730
                                                                                   ===========================================
SHAREHOLDERS' EQUITY                                                                     536,306               549,878
                                                                                   -------------------------------------------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY                                             7,293,122             7,627,608
</TABLE>

The accompanying Notes 1 to 20 are an integral part of these financial
statements.

                                       4
<PAGE>
                         Grupo Financiero Galicia S.A.
   "Corporation which has not adhered to the Optional System for the Mandatory
                   Acquisition of Shares in a Public Offering"
                      Supplementary Accounting Information
                        Consolidated Memorandum Accounts
                   as of March 31, 2003 and December 31, 2002
                  (figures stated in thousands of US dollars)

<TABLE>
<CAPTION>
                                                                                         3.31.03              12.31.02
                                                                                   -------------------------------------------

<S>                                                                                <C>                   <C>
DEBIT                                                                                  9,431,410             8,010,824
                                                                                   ===========================================
CONTINGENT                                                                             6,997,311             5,372,073
                                                                                   -------------------------------------------
Guarantees received                                                                    4,931,687             3,278,265
Contingencies re. contra items
Loans obtained (unused balances)                                                       2,065,624             2,093,808
                                                                                   -------------------------------------------
CONTROL                                                                                2,406,182             2,607,992
                                                                                   -------------------------------------------
Uncollectible loans                                                                      286,247               260,582
Other                                                                                  2,093,052             2,304,278
Control re. contra items                                                                  26,883                43,132
                                                                                   -------------------------------------------
DERIVATIVES                                                                                4,246                 4,861
                                                                                   -------------------------------------------
"Notional" value of put options bought                                                     3,507                 4,015
Derivatives re. contra items                                                                 739                   846
                                                                                   -------------------------------------------
TRUST ACCOUNTS                                                                             23,671               25,898
                                                                                   -------------------------------------------
Trust funds                                                                                23,671               25,898
                                                                                   -------------------------------------------
CREDIT                                                                                  9,431,410            8,010,824
                                                                                   ===========================================

                                                                                   -------------------------------------------
CONTINGENT                                                                              6,997,311            5,372,073
                                                                                   -------------------------------------------
Loans granted (unused balances)                                                            60,074               57,396
Guarantees provided to the Argentine Central Bank                                       1,874,809            1,890,540
Other guarantees provided included in the debtor classification regulations             1,808,792               84,658
Other guarantees provided not included in the debtor classification regulations             8,128                9,277
Other included in the debtor classification regulations                                    41,369               51,937
Other                                                                                           8                    -
Contingencies re. contra items                                                          3,204,131            3,278,265
                                                                                   -------------------------------------------
CONTROL                                                                                 2,406,182            2,607,992
                                                                                   -------------------------------------------
Valuables to be credited                                                                   26,829               43,070
Other                                                                                          54                   62
Control re. contra items                                                                2,379,299            2,564,860
                                                                                   -------------------------------------------
DERIVATIVES                                                                                 4,246                4,861
                                                                                   -------------------------------------------
"Notional" value of call options written                                                      739                    -
"Notional" value of put options written                                                         -                  846
Derivatives re. contra items                                                                3,507                4,015
                                                                                   -------------------------------------------
TRUST ACCOUNTS                                                                             23,671               25,898
                                                                                   -------------------------------------------
Trust liabilities re. Contra items                                                         23,671               25,898
</TABLE>

The accompanying Notes 1 to 20 are an integral part of these financial
statements.

                                       5
<PAGE>
                         Grupo Financiero Galicia S.A.
   "Corporation which has not adhered to the Optional System for the Mandatory
                   Acquisition of Shares in a Public Offering"
                      Supplementary Accounting Information
                         Consolidated Income Statement
                         For the period of three months
              commenced January 1, 2003 and ended March 31, 2003.
          Presented in comparative format with the same period of the
                              previous fiscal year
                  (Figures stated in thousands of US dollars)

<TABLE>
<CAPTION>
                                                                                         3.31.03               3.31.02
                                                                                  --------------------------------------------
<S>                                                                                  <C>                   <C>
A.   FINANCIAL INCOME                                                                    224,049               820,847
                                                                                  --------------------------------------------
     Interest on cash and due from banks                                                       2                   189
     Interest on loans to the financial sector                                            10,416                 1,904
     Interest on overdraft facilities                                                      4,012                10,013
     Interest on notes                                                                    10,258                18,408
     Interest on mortgage loans                                                            5,325                20,011
     Interest on pledge loans                                                                214                 3,678
     Interest on credit card loans                                                        10,036                27,207
     Interest on other loans                                                               1,983                17,161
     Interest on other receivables resulting from financial brokerage                     11,628                 8,793
     Net income from government and corporate securities                                  11,778                56,618
     Net income from secured loans - Decree 1387/01                                       11,833                40,112
     Adjustment from application of adjusting index CER                                  132,925               156,471
     Other                                                                                13,639               460,282
                                                                                  --------------------------------------------
B.   FINANCIAL EXPENSES                                                                  317,505               586,579
                                                                                  --------------------------------------------
     Interest on current account deposits                                                  1,471                   480
     Interest on savings account deposits                                                    210                   970
     Interest on time  deposits                                                           20,528                24,893
     Interest on loans from financial sector                                                 614                 6,476
     Interest on other liabilities resulting from financial brokerage                     29,213                63,714
     Other interest                                                                       40,770                40,945
     Adjustment from application of adjusting index CER                                   47,230                95,908
     Other                                                                               177,469               353,193
                                                                                  --------------------------------------------
     GROSS BROKERAGE MARGIN                                                              (93,456)              234,268
                                                                                  ============================================
C.   PROVISIONS FOR LOAN LOSSES                                                           19,871                64,980
                                                                                  --------------------------------------------
D.   INCOME FROM SERVICES                                                                 32,280                65,306
                                                                                  --------------------------------------------
     Linked with lending transactions                                                      9,910                18,609
     Linked with borrowing transactions                                                    8,862                17,615
     Other commissions                                                                       820                 1,889
     Other                                                                                12,688                27,193
                                                                                  --------------------------------------------
E.   EXPENSES FOR SERVICES                                                                 5,297                12,628
                                                                                  --------------------------------------------
     Commissions                                                                           2,823                 6,370
     Other                                                                                 2,474                 6,258

     MONETARY RESULT OF FINANCIAL BROKERAGE                                               (4,860)             (148,865)
</TABLE>

The accompanying Notes 1 to 20 are an integral part of these financial
statements.

                                       6
<PAGE>
                         Grupo Financiero Galicia S.A.
   "Corporation which has not adhered to the Optional System for the Mandatory
                   Acquisition of Shares in a Public Offering"
                      Supplementary Accounting Information
                         Consolidated Income Statement
                         For the period of three months
              commenced January 1, 2003 and ended March 31, 2003.
Presented in comparative format with the same period of the previous fiscal year
                  (figures stated in thousands of US dollars)

<TABLE>
<CAPTION>
                                                                                         3.31.03               3.31.02
                                                                                  --------------------------------------------
<S>                                                                                  <C>                   <C>
G.   ADMINISTRATIVE EXPENSES                                                              43,128                87,464
                                                                                  --------------------------------------------
     Personnel expenses                                                                   18,477                43,356
     Directors' and syndics' fees                                                            236                   583
     Other fees                                                                              772                 2,093
     Advertising and publicity                                                               939                 1,509
     Taxes                                                                                 2,129                 5,397
     Other operating expenses                                                             17,543                29,021
     Other                                                                                 3,032                 5,505
                                                                                  --------------------------------------------
     MONETARY RESULT OF OPERATING EXPENSES                                                    28                 3,612
                                                                                  --------------------------------------------
     NET LOSS FROM FINANCIAL BROKERAGE                                                  (134,304)              (10,751)
                                                                                  ============================================
     RESULT OF MINORITY INTEREST                                                            (923)               91,460
                                                                                  --------------------------------------------
H.   MISCELLANEOUS INCOME                                                                136,915                31,611
                                                                                  --------------------------------------------
     Penalty interest                                                                        445                   486
     Loans recovered and allowances reversed                                             110,552                 4,003
     Adjustment from application of adjusting index CER                                   17,241                     -
     Other                                                                                 8,677                27,122
                                                                                  --------------------------------------------
I.   MISCELLANEOUS LOSSES                                                                 21,003               272,887
                                                                                  --------------------------------------------
     Net loss on long-term investments                                                     3,022              207,184
     Penalty interest and charges in favor of the Argentine Central Bank                       2                   25
     Provision for losses on miscellaneous receivables and other provisions                3,244               28,754
     Other                                                                                14,735               36,924
                                                                                  --------------------------------------------
     MONETARY RESULT OF OTHER OPERATIONS                                                   3,269              (55,595)
                                                                                  --------------------------------------------
     NET LOSS BEFORE INCOME TAX                                                          (16,046)            (216,162)
                                                                                  ============================================
K.   INCOME TAX                                                                            3,618                3,846
                                                                                  --------------------------------------------
     NET LOSS FOR THE PERIOD                                                             (19,664)            (220,008)
</TABLE>

The accompanying Notes 1 to 20 are an integral part of these financial
statements.

                                       7
<PAGE>
                         Grupo Financiero Galicia S.A.
   "Corporation which has not adhered to the Optional System for the Mandatory
                   Acquisition of Shares in a Public Offering"
                      Supplementary Accounting Information
                      Consolidated Statement of Cash Flows
                         For the period of three months
              commenced January 1, 2003 and ended March 31, 2003.
          Presented in comparative format with the same period of the
                              previous fiscal year
                  (figures stated in thousands of US dollars)

<TABLE>
<CAPTION>
                                                                                         3.31.03                3.31.02
                                                                                   -------------------------------------------
<S>                                                                                  <C>                    <C>
Changes in cash
Cash and due from banks at beginning of fiscal year                                      183,256                277,273
(Decrease) in cash                                                                         9,070              (126,216)
                                                                                   -------------------------------------------
Cash and due from banks at end of year                                                   192,326                151,057
                                                                                   ===========================================
Reasons for changes in cash
Financial income collected                                                                86,250                132,595
Income from services collected                                                            32,596                 43,124
Less:
Financial expenses paid                                                                  (85,605)              (127,229)
Expenses for services paid                                                                (5,053)                (9,475)
Administrative expenses paid                                                             (32,608)               (59,233)
                                                                                   -------------------------------------------
Cash provided by operations                                                               (4,420)               (20,218)
                                                                                   ===========================================
Other sources of cash
Net increase in deposits                                                                   8,764                      -
Net increase in other liabilities resulting from financial brokerage                           -                712,370
Net decrease in government and corporate securities                                          824                  7,039
Net decrease in loans                                                                     48,606                211,365
Net decrease in other receivables resulting from financial brokerage                       4,830                147,510
Net decrease in other assets                                                                   -                122,957
Other sources of cash                                                                     27,252                258,912
                                                                                   -------------------------------------------
Total sources of cash                                                                     90,276              1,460,153
                                                                                   -------------------------------------------
Other uses of cash
Net increase  in government and corporate securities                                           -                   (942)
Net increase in other receivables resulting from financial brokerage                           -                (35,150)
Net increase in other assets                                                             (20,048)                  (668)
Net decrease in deposits                                                                       -             (1,382,043)
Net decrease in other liabilities resulting from financial brokerage                      (2,713)                     -
Net decrease in other liabilities                                                         (7,631)                (2,936)
Other uses of cash                                                                       (45,095)               (80,380)
                                                                                   -------------------------------------------
Total uses of cash                                                                       (75,487)            (1,502,119)
                                                                                   -------------------------------------------
Monetary result of cash and due from banks                                                (1,299)               (64,032)
                                                                                   ===========================================
Net Increase/(Decrease) in cash                                                            9,070               (126,216)
</TABLE>

The accompanying Notes 1 to 20 are an integral part of these financial
statements.

                                       8
<PAGE>
                         Grupo Financiero Galicia S.A.
   "Corporation which has not adhered to the Optional System for the Mandatory
                   Acquisition of Shares in a Public Offering"
                      Supplementary Accounting Information
                 Notes to the Consolidated Financial Statements
                         For the period of three months
              commenced January 1, 2003 and ended March 31, 2003.
                        presented in comparative format
                  (figures stated in thousands of US dollars)


NOTE 1:         ARGENTINE ECONOMIC CONTEXT

               The facts and circumstances  described in Note 1 to the financial
               statements of Grupo  Financiero  Galicia S.A. are also applicable
               to these consolidated  financial  statements and, therefore,  are
               subject to the same restrictions as those mentioned in that note.

NOTE 2:        FINANCIAL STATEMENT PRESENTATION

               The consolidated  financial statements are disclosed in line with
               the provisions of Argentine  Central Bank Communique "A" 3147 and
               supplementary rules regarding  financial  reporting  requirements
               for the publication of quarterly and annual financial statements,
               observing the guidelines of Technical  Pronouncements  Nos. 8 and
               19 of  the  Argentine  Federation  of  Professional  Councils  in
               Economic  Sciences  (F.A.C.P.C.E.)  and  General  Resolution  No.
               434/03  of the CNV.  As  required  by the  regulations  mentioned
               above,  the financial  statements  are  presented in  comparative
               format with the same period of the previous year,  except for the
               comparative  information in the statement of financial  condition
               and  supplementary  information to it which,  in accordance  with
               Technical  Pronouncement  No.  19 of the  FACPCE,  should be that
               corresponding  to the closing date of the  preceding  full fiscal
               year,  a  disclosure  criterion  that has been  adopted  in these
               consolidated financial statements.
               In  line  with   professional   accounting   standards   and  the
               requirements  of the control bodies,  these financial  statements
               have  been  prepared  without  recognizing  the  changes  in  the
               purchasing power of the currency until December 31, 2001. In line
               with  Argentine  Central  Bank  Communique  "A" 3702,  Resolution
               240/02 of the F.A.C.P.C.E.  and Resolution 415/02 of the National
               Securities  Commission,  recognition  of the effects of inflation
               has been resumed in these financial  statements  since January 1,
               2002.
               To this end,  the  restatement  method  established  by Technical
               Pronouncement  No.  6 of  the  F.A.C.P.C.E.  has  been  followed,
               restating  the  non-monetary  items by applying the general level
               domestic wholesale price

                                       9
<PAGE>
                         Grupo Financiero Galicia S.A.
   "Corporation which has not adhered to the Optional System for the Mandatory
                   Acquisition of Shares in a Public Offering"
           Notes to the Consolidated Financial Statements (Continued)
                  (figures stated in thousands of US dollars)

NOTE 2:        (Continued)


               index (W.P.I.)  published by the National Institute of Statistics
               and Census  (I.N.D.E.C.),  and  considering  that the  accounting
               measurements  originated prior to December 31, 2001 are stated in
               the currency value as of that date.
               On April 8, 2003,  Argentine  Central  Bank  Communique  "A" 3921
               established that, in view of the provisions of Decree 664/03, the
               financial  statements  for fiscal years  commencing as from March
               25, 2003 should be stated in nominal currency.  Consequently,  in
               line with CNV Resolution No. 441/03, the Company has discontinued
               the restatement of its financial statements since March 1, 2003.
               Although  this  criterion is not in  accordance  with  prevailing
               professional   accounting  standards,   this  departure  has  not
               produced a  significant  effect on the financial  statements.  In
               March 2003, a deflation rate of 0.56% was recorded.

NOTE 3:        ACCOUNTING POLICIES

               Below  are  the  most  important   accounting  policies  used  in
               preparing the consolidated financial statements:
               a.   Financial statement consolidation

                    The  statements of financial  condition as of March 31, 2003
                    and  December  31,  2002,  and  the  income  statements  and
                    statements  of  sources  and  application  of  funds or cash
                    flows,  as the case may be, as of March 31, 2003 and 2002 of
                    Banco de Galicia y Buenos Aires S.A., Net  Investment  S.A.,
                    Galicia  Warrants  S.A. and  Sudamericana  Holding S.A. have
                    been  consolidated  with those of Grupo  Financiero  Galicia
                    S.A. on a line by line basis.

                    The  principal  investment  of the  Company  is  its  equity
                    interest  in  Banco  de  Galicia  y  Buenos  Aires  S.A.,  a
                    financial  institution  subject to  Argentine  Central  Bank
                    regulations.  For this  reason the  Company  has adopted the
                    disclosure  criteria  applied  by Banco de  Galicia y Buenos
                    Aires S.A..

                    Banco de Galicia y Buenos  Aires S.A.  financial  statements
                    include the figures  corresponding  to the operations of its
                    foreign  branches and  subsidiaries in Argentina and abroad,
                    as reported in their  special  financial  statements,  which
                    have been adapted to the valuation and disclosure  standards
                    laid down by the  Argentine  Central  Bank and  professional
                    accounting standards prevailing in

                                       10
<PAGE>
                         Grupo Financiero Galicia S.A.
   "Corporation which has not adhered to the Optional System for the Mandatory
                   Acquisition of Shares in a Public Offering"
           Notes to the Consolidated Financial Statements (Continued)
                  (figures stated in thousands of US dollars)

NOTE 3:        (Continued)

                    Argentina. The foreign branches' and subsidiaries' financial
                    statements  originally  issued in foreign currency have been
                    converted  into pesos in line with  Argentine  Central  Bank
                    rules,  as indicated in point b.1.  below,  and in line with
                    professional accounting standards.

                    The financial  statements of Banco de Galicia y Buenos Aires
                    S.A.   corresponding  to  Argentine   operations  have  been
                    adjusted  for  inflation  as  mentioned  in Note  2,  second
                    paragraph, to the consolidated financial statements.

                    In  addition,  the  opening  balances  of Banco de Galicia y
                    Buenos  Aires S.A.'s  statement of changes in  shareholders'
                    equity have been  disclosed as established by Communique "A"
                    3800 of the Argentine  Central Bank so, ad referendum of the
                    shareholders'  meeting, Banco de Galicia y Buenos Aires S.A.
                    has  absorbed  the loss for the year in  advance,  up to the
                    limit of the  balances  recorded  in retained  earnings  and
                    unrealized valuation difference arising from the net foreign
                    currency position.

                    On April 30, 2003, an Ordinary and Extraordinary  Meeting of
                    Shareholders  of Banco de Galicia y Buenos  Aires  S.A.  was
                    held,  at which the  absorption  of the loss for the  fiscal
                    year ended  December 31, 2002,  restated into currency as of
                    February 28, 2003,  was approved  according to the following
                    detail:

                    with prior year retained earnings:  118,699
                    with  unrealized  valuation  difference  for the net foreign
                    currency position: 491,254
                    with discretional reserves: 113,149
                    with equity adjustment fund - technical revaluations: 32,157

                    It should  be noted  that for  purposes  of  disclosing  the
                    consolidated  financial  statements of the Company the early
                    absorption  of  that  loss  with  the  balance  recorded  in
                    retained earnings has not been taken into account.

                                       11
<PAGE>
                         Grupo Financiero Galicia S.A.
   "Corporation which has not adhered to the Optional System for the Mandatory
                   Acquisition of Shares in a Public Offering"
           Notes to the Consolidated Financial Statements (Continued)
                  (figures stated in thousands of US dollars)

NOTE 3:        (Continued)


               b.   Consistency of accounting policies

                    The accounting  policies used in preparing  Galicia Warrants
                    S.A.,  Net  Investment  S.A. and  Sudamericana  Holding S.A.
                    financial  statements  are similar to those  followed by the
                    Company.

                    The  principal  valuation  criteria  observed  by  Banco  de
                    Galicia y Buenos Aires S.A. were as follows:


                    b.1. - Foreign currency Assets and Liabilities
                    These are stated at the US dollar  rate of  exchange  set by
                    the  Argentine  Central  Bank,  prevailing  at the  close of
                    operations on the last business day of each month.
                    Assets and liabilities  valued in foreign  currencies  other
                    than  the US  dollar  will  be  converted  into  the  latter
                    currency using the swap rates  communicated by the Argentine
                    Central Bank's operations desk.
                    As established  by  professional  standards and  regulations
                    prevailing in Argentina,  the Bank recognized the effects of
                    the  devaluation  of the  Argentine  peso as from January 1,
                    2002.


                    b.2. - Gold Bullion
                    This is  valued  at the  most  recent  U.S.  dollar  closing
                    selling  quotation for the troy ounce on the London  Market,
                    net of estimated direct selling expenses.
                    The  procedure  described  in item  b.1.  was  followed  for
                    translating it into Argentine currency.

                    b.3. - Government and Corporate Securities

                    b.3.a. - Government Securities
                    I) Holdings of investment accounts securities:

                    Holdings   included  in   investment   accounts   have  been
                    recognized  at  cost,  increased  exponentially  up  to  the
                    maturity date of each service,  based on their internal rate
                    of return and the time  elapsed  since  their  inclusion  in
                    those accounts. When existing holdings of trading securities
                    are involved, their market quotation at the close

                                       12
<PAGE>
                         Grupo Financiero Galicia S.A.
   "Corporation which has not adhered to the Optional System for the Mandatory
                   Acquisition of Shares in a Public Offering"
           Notes to the Consolidated Financial Statements (Continued)
                  (figures stated in thousands of US dollars)

NOTE 3:        (Continued)

                    of  operations  of the day  preceding  the transfer of those
                    holdings is considered to be the cost.
                    The values thus  determined  will be reduced on the last day
                    of each  month  by the  amount  of the  positive  difference
                    resulting  from comparing that balance with the market value
                    of each security increased by 20%.

                    Effective January 7, 2003, Argentine Central Bank Communique
                    "A" 3857  restricted the  possibility of securities  held in
                    the  Bank's   portfolio  being  classified  as  holdings  in
                    investment accounts.
                    As of March 31, 2003 the difference between the market value
                    and the carrying value of investment  account securities has
                    not been determined, because the volume traded is considered
                    to be  immaterial in relation to the total issue amount and,
                    therefore,  it is not  representative  of the  value  of the
                    investment.
                    These holdings  include  National  Government Bonds accruing
                    interest at Libor and falling due in 2012,  received  within
                    the  framework  of  Sections  28  and  29 of  Decree  905/02
                    recorded  at  their  technical  value  (see  Note  1 to  the
                    financial  statements,  section  "Compensation  to financial
                    institutions".  The  treatment  of  the  mentioned  positive
                    difference does not apply to these securities.
                    While  this  valuation   criterion  is  followed,   no  cash
                    dividends  may be  distributed,  except  for the  amount  of
                    profits in excess of the  difference  between  the  carrying
                    value  and  the  market  value  of  these  securities.   Had
                    prevailing  professional  accounting standards been applied,
                    the  value  of  addition  of  those  securities  and  of the
                    balances  to be  received  recorded  in  "Other  receivables
                    resulting from financial  brokerage"  would have been stated
                    at their estimated market value (see point c.1.d.3.).

                    II) Holdings of trading securities:
                    These are stated at the closing  quotation for each security
                    at period end,  plus the value of matured  amortization  and
                    interest   coupons   receivable,   less  estimated   selling
                    expenses, where applicable.
                    III) Others - Listed:
                    These have been valued at their  quotation,  as indicated in
                    point II) above.
                    IV) Unlisted:
                    These are valued at the acquisition cost plus income accrued
                    up to the end of the period, where applicable.

                                       13
<PAGE>
                         Grupo Financiero Galicia S.A.
   "Corporation which has not adhered to the Optional System for the Mandatory
                   Acquisition of Shares in a Public Offering"
           Notes to the Consolidated Financial Statements (Continued)
                  (figures stated in thousands of US dollars)

NOTE 3:        (Continued)

                    b.3.b. - Listed Corporate Securities
                    These are valued at the  quotation  prevailing at the period
                    end, net of estimated selling expenses, where applicable.

                    b.4. Secured Loans
                    Within the framework of Decree  1387/01,  Banco de Galicia y
                    Buenos  Aires  S.A.  has  participated  in the  exchange  of
                    Argentine   public  debt  securities  and  loans  under  the
                    Promissory  Note/Bond  program for new loans called  Secured
                    Loans. The main differences between the instruments received
                    and  those  exchanged  consisted  of  an  extension  of  the
                    amortization   term   which  was  3  years  for   securities
                    originally  maturing up to December 31, 2010 and a reduction
                    of  the  interest  rate,   which  was  set  at  70%  of  the
                    contractual  rate,  with a maximum  rate of 7% per annum for
                    fixed-rate  transactions and Libor plus 3% for floating rate
                    loans.  As established by Section 20 of the above  mentioned
                    decree,  the conversion was made at the nominal value,  at a
                    rate of  exchange  of $ 1=US$ 1 and in the same  currency as
                    that of the converted obligation.

                    As  established by the Argentine  Central Bank  regulations,
                    the gain  arising from the  difference  between the carrying
                    value  of the  Secured  Loans  and  the  book  value  of the
                    securities  exchanged  is  recorded  in an asset  adjustment
                    account  and  charged  to  results  on a monthly  basis,  in
                    proportion  to  the  term  of  each  of  the  secured  loans
                    received.

                    Had the  position of  government  securities  classified  in
                    investment  accounts and presented  for their  exchange been
                    valued according to professional  accounting standards,  the
                    shareholders' equity of Banco de Galicia y Buenos Aires S.A.
                    would have  decreased  by US$ 149,895 at the  exchange  date
                    (November 5, 2001) (see point c.1.d.1.).
                    Subsequently,  Decree 644 dated April 18,  2002  established
                    the  conversion  to pesos of the  Secured  Loans  originally
                    denominated  in US dollars at the exchange rate of $1.40 per
                    US  dollar,  pursuant  to  Section 1 of Decree  No.  471/02,
                    setting new  interest  rates to be accrued by those  secured
                    loans,  as established  by Section 3 of Decree 471/02.  (see
                    Note 1).
                    On March 28,  2003,  the  Argentine  Central  Bank  released
                    Communique "A" 3911 substantially modifying the accounting

                                       14
<PAGE>
                         Grupo Financiero Galicia S.A.
   "Corporation which has not adhered to the Optional System for the Mandatory
                   Acquisition of Shares in a Public Offering"
           Notes to the Consolidated Financial Statements (Continued)
                  (figures stated in thousands of US dollars)

NOTE 3:        (Continued)

                    criterion for certain  financing to the public sector.  This
                    Communique   establishes  that  Secured  Loans,   government
                    securities not subject to the minimum capital requirement to
                    cover  market  risk,  which are mainly  those  which are not
                    listed on stock  exchanges,  promissory  notes issued by the
                    Fiduciary  Fund for the  Provincial  Development  and  other
                    financing to the public sector, which financial institutions
                    held in their  portfolio  at that  date or will add to it in
                    the future,  must be  recognized  at the lower value arising
                    from  comparing  their "present  value" to their  "technical
                    value".
                    The former is defined as the "net  present  value" of a cash
                    flow structure, determined under contractual conditions, and
                    discounted at a rate of 3% set by the Argentine Central Bank
                    until  December   2003.   The   "technical   value"  is  the
                    index-adjusted  amount of each instrument under  contractual
                    conditions.
                    As of March 31, 2003,  if the  difference  between the value
                    arising as described in the preceding  paragraph  (the lower
                    of present value or technical  value),  and the  theoretical
                    value  (balances  as of February  28,  2003,  which  include
                    principal amounts net of amortization,  adjusted by applying
                    the CER, where  applicable,  net of the  adjustment  account
                    mentioned  above) is  positive,  it is reflected in an asset
                    adjustment  account  and,  if  negative,  it is  charged  to
                    results.
                    Banco de Galicia y Buenos  Aires S.A. has charged US$ 70,210
                    to results for this item.

                    b.5.  - Accrual  of  adjustments,  interest,  exchange  rate
                    differences,  premiums on future  transactions  and variable
                    returns
                    For  foreign   currency   transactions  and  local  currency
                    transactions  with  a  principal   adjustment  clause  valid
                    through  April 1, 1991,  as well as those  with  prearranged
                    rates for less than 92 days, the accrual has been recognized
                    on a linear basis.
                    For local currency transactions at rates arranged for longer
                    periods,  the interest  has been  accrued on an  exponential
                    basis.

                    For  the  lending  and  borrowing  transactions   originally
                    carried out in foreign  currency and  converted  into pesos,
                    the pertinent adjustment from the application of the CER was
                    accrued at period end.

                    b.6. - Assets Under Financial Leases
                    These are stated at the  acquisition  cost less  accumulated
                    depreciation, plus CER where applicable.

                                       15
<PAGE>
                         Grupo Financiero Galicia S.A.
   "Corporation which has not adhered to the Optional System for the Mandatory
                   Acquisition of Shares in a Public Offering"
           Notes to the Consolidated Financial Statements (Continued)
                  (figures stated in thousands of US dollars)

NOTE 3:        (Continued)

                    b.7. - Equity interests in other companies

                    b.7.a. - In financial  institutions  and  supplementary  and
                    authorized activities
                    -    Controlled companies
                    Argentine:
                    The equity investments in controlled companies are stated at
                    their equity values.

                    The interest in Banelco  S.A.  has been valued  according to
                    the equity method of  accounting,  on the basis of financial
                    statements as of December 31, 2002  because,  at the date of
                    these  financial  statements  that  company  does  not  have
                    audited   financial   statements.   Furthermore,   important
                    developments  that had an impact on the financial  condition
                    and results of that company during the time elapsed, as well
                    as the effect of inflation,  were  recognized as of February
                    28, 2003.
                    As a result  of the  application  of the  economic  measures
                    described in Note 1 to the financial  statements of Tarjetas
                    Regionales  S.A.,  this  Company  reported  a deficit in its
                    equity.  This effect has been recognized in Banco de Galicia
                    y Buenos Aires S.A.'s  financial  statements  by recording a
                    provision under liabilities.



                    In valuing the equity interests held in Tarjetas  Regionales
                    S.A. and Galicia Capital Markets S.A.,  their  shareholders'
                    equity and results  have been  adjusted  in their  financial
                    statements  due to the effect on them of the  application of
                    the  deferred  tax  method in  recognizing  the  income  tax
                    charge,  a criterion that is not  contemplated  by Argentine
                    Central  Bank  regulations.  The  Shareholders'  equity  and
                    results of Tarjetas  Regionales S.A.  amounted to US$ 10,222
                    and US$ 23, and those of Galicia  Capital  Markets  S.A., to
                    US$ (41) and US$ 416, respectively.  It should be noted that
                    those  effects  have  been  considered  by Grupo  Financiero
                    Galicia S.A. in these financial statements.

                    Foreign:
                    As regards the interests in Banco  Galicia  Uruguay S.A. and
                    Banco de Galicia  (Cayman)  Limited,  the statement  made in
                    Note 1 to these

                                       16
<PAGE>
                         Grupo Financiero Galicia S.A.
   "Corporation which has not adhered to the Optional System for the Mandatory
                   Acquisition of Shares in a Public Offering"
           Notes to the Consolidated Financial Statements (Continued)
                  (figures stated in thousands of US dollars)

NOTE 3:        (Continued)

                    financial  statements under section  entitled  "Situation of
                    Banco de Galicia y Buenos Aires S.A.  and its  subsidiaries"
                    has been applied.

                    -    Minority interests
                    Argentine:
                    Minority  interests  have been  valued at cost  restated  as
                    mentioned in point a. above, plus stock dividends.

                    Foreign:
                    These are  reflected  at the  acquisition  cost,  plus stock
                    dividends, recognized at their face value.
                    The procedure mentioned in point b.1. above was followed for
                    conversion of foreign  currency equity  interests into local
                    currency.
                    b.7.b. - In other companies
                    -    Minority interests
                    Argentine:
                    These  equity  investments  are stated at their  acquisition
                    cost  restated as  mentioned  in point a. above,  plus stock
                    dividends.

                    A  valuation  allowance  has been set up for the  amount  by
                    which it is  estimated  that the  equity  interests  in Ocye
                    S.A.,   Argencontrol  S.A.,  Correo  Argentino  S.A.,  Aguas
                    Argentinas  S.A.,  Aguas  Provinciales  de Santa Fe S.A. and
                    Aguas  Cordobesas  S.A. are  overstated in relation to their
                    equity value.



                    The equity  interests in Net Investment  S.A.,  Sudamericana
                    Holding  S.A.  and Galicia  Warrants  S.A.  have been valued
                    according to the equity method of accounting.
                    The Company has valued its equity  interests in Sudamericana
                    Holding S.A. and Galicia  Warrants  S.A.  based on financial
                    statements  prepared  as of  December  31,  2002  and  as of
                    January 31, 2003, respectively.

                    Foreign:
                    These  are  stated  at  the  acquisition  cost,  plus  stock
                    dividends, recognized at their face value.
                    The  procedure  referred  to in point  b.1.  above  has been
                    applied to translate  foreign currency equity interests into
                    local currency.

                                       17
<PAGE>
                         Grupo Financiero Galicia S.A.
   "Corporation which has not adhered to the Optional System for the Mandatory
                   Acquisition of Shares in a Public Offering"
           Notes to the Consolidated Financial Statements (Continued)
                  (figures stated in thousands of US dollars)

NOTE 3:        (Continued)

                    b.8. - Fixed assets and miscellaneous assets
                    Fixed  assets and  miscellaneous  assets have been valued at
                    cost restated (see point a. above), plus the appreciation in
                    the value of the real estate  properties  which  include the
                    effect  of  a  technical  revaluation  made  in  1981,  less
                    accumulated depreciation.
                    The  depreciation of these assets is determined on the basis
                    of their estimated useful lives, expressed in months. A full
                    month's  depreciation is recognized in the month in which an
                    asset is acquired,  while no  depreciation  is recognized in
                    the month in which it is sold or retired,  over a maximum of
                    600  months  for real  estate  properties,  120  months  for
                    furniture and fixtures and 60 months for the rest of assets.
                    The net book values of the assets, taken as a whole, are not
                    in excess of their value to the business.

                    b.9. - Other miscellaneous assets
                    Miscellaneous   assets   are   valued   at  their   restated
                    acquisition   cost   (see   point   a.   above),   less  the
                    corresponding accumulated depreciation.

                    The effects of the variations in the purchasing power of the
                    currency  as from  January  1,  2002 on those  miscellaneous
                    assets earmarked for sale and acquired  through  foreclosure
                    have not been given accounting recognition.
                    The  depreciation  charges for these  assets are  calculated
                    following  the  same  criterion  as  that  mentioned  in the
                    preceding section.


                    b.10. - Intangible assets
                    Intangible assets have been valued at their acquisition cost
                    restated  (see  point  a.  above),  less  the  corresponding
                    accumulated  amortization,  calculated on the basis of their
                    estimated useful lives expressed in months.

                    Amortization has been recognized on a straight-line basis in
                    equal monthly installments, over a maximum of 120 months for
                    "Goodwill"  capitalized  and over a maximum of 60 months for
                    "Organization and Development Expenses".

                                       18
<PAGE>
                         Grupo Financiero Galicia S.A.
   "Corporation which has not adhered to the Optional System for the Mandatory
                   Acquisition of Shares in a Public Offering"
           Notes to the Consolidated Financial Statements (Continued)
                  (figures stated in thousands of US dollars)

NOTE 3:        (Continued)

                    Effective March 2003,  Argentine Central Bank Communique "A"
                    3916   established   that  the  difference   resulting  from
                    compliance  with  court  decisions  made in  lawsuits  filed
                    challenging  the  applicability  of current  regulations  to
                    deposits with the financial system,  within the framework of
                    the   provisions  of  Law  No.  25561,   Decree  214/02  and
                    supplementary  rules,  should  also be  recorded  under this
                    caption,  the  amortization  of which should take place in a
                    maximum of 60 equal, monthly and consecutive installments as
                    from April 2003 (see Note 1 to financial statements).

                    b.11.  -  Allowance   for  loan  losses  and  provision  for
                    contingencies
                    The aforementioned  allowance and provision have been set up
                    to cover Banco de Galicia y Buenos  Aires  S.A.'s  estimated
                    loan  uncollectibility  risk,  based on an evaluation of the
                    debtors'   degree   of   compliance   with   their   payment
                    obligations,  their economic and financial condition and the
                    guarantees supporting the related transactions, in line with
                    the provisions of Argentine Central Bank Communique "A" 2216
                    and supplementary ones.


                    b.12. - Shareholders' equity
                    1) The  Shareholders'  Equity  accounts  have been  restated
                    following  the   procedure   mentioned  in  Note  2  to  the
                    consolidated  financial statements,  except for the "Capital
                    Stock" and "Non-Capitalized  Contributions"  accounts, which
                    have been stated at their  original  values.  The adjustment
                    derived from the restatement of those accounts was allocated
                    to the "Equity Adjustment- Capital Adjustment" account.
                    Income and expenses have been restated regardless of whether
                    they have been collected or paid.

                    Monetary results of exposure to inflation were determined as
                    follows:


                    a.  "Monetary  result of financial  brokerage"  includes the
                    result of  exposure  to  inflation  generated  by assets and
                    liabilities   related  to  the  usual  period  of  brokerage
                    activity   between  the  supply  and  demand  of   financial
                    resources.

                                       19
<PAGE>
                         Grupo Financiero Galicia S.A.
   "Corporation which has not adhered to the Optional System for the Mandatory
                   Acquisition of Shares in a Public Offering"
           Notes to the Consolidated Financial Statements (Continued)
                  (figures stated in thousands of US dollars)

NOTE 3:        (Continued)

                    b.  "Monetary  result of  operating  expenses"  includes the
                    result of exposure to inflation generated by monetary assets
                    and   liabilities  in  pesos,   related  to   administrative
                    expenses.
                    c. "Monetary result of other operations" includes the result
                    of exposure to inflation generated by assets and liabilities
                    not related to the financial brokerage activity.
                    2) As called for by Communique  "A" 3703,  the amount of the
                    compensation  envisaged in Decrees Nos.  214/02,  905/02 and
                    supplementary norms, attributable to the positive difference
                    between the Shareholders' Equity as of December 31, 2001 and
                    that  resulting  from  adjusting  the net  foreign  currency
                    position at that date  converted  into pesos at the exchange
                    rate of $1.40 per US dollar, was recorded in the "Unrealized
                    valuation  difference  arising from the  compensation of the
                    net foreign currency position" account.
                    In the  comparative  consolidated  financial  statements  of
                    Grupo  Financiero  Galicia S.A. as of March 31,  2002,  that
                    amount had been  included  in the  results  for the  period,
                    under  "Financial   income  -  Other",   as  established  by
                    professional accounting standards.


                    b.13. - Income tax and tax on minimum notional income

                    As of March 31, 2003,  the Company did not record any income
                    tax charge because it reported a tax loss  carry-forward  at
                    that date.
                    In view of the fact that  Banco de  Galicia  y Buenos  Aires
                    S.A.  determined  an income  tax loss  carry  forward in the
                    fiscal year ended  December 31, 2002,  it is required to pay
                    the tax on minimum notional income.
                    Notwithstanding  this,  no  tax  charge  has  been  expensed
                    because  the  amounts  that  are  ultimately   paid  may  be
                    computed,  until  they are fully  used up,  as a payment  on
                    account of income tax to be  determined  within the next ten
                    fiscal years following the payment date.
                    The income tax charge has been determined in accordance with
                    Argentine Central Bank regulations, which do not contemplate
                    the  application  of the deferred tax method.  However,  the
                    consolidated financial statements include the effect of this
                    accounting  criterion on Grupo  Financiero  Galicia S.A. and
                    its subsidiaries.

                                       20
<PAGE>
                         Grupo Financiero Galicia S.A.
   "Corporation which has not adhered to the Optional System for the Mandatory
                   Acquisition of Shares in a Public Offering"
           Notes to the Consolidated Financial Statements (Continued)
                  (figures stated in thousands of US dollars)

NOTE 3:        (Continued)

                    b.14. - Dismissal Indemnities
                    Banco de Galicia y Buenos Aires S.A.  directly  expenses the
                    dismissal indemnities.
                    The amounts  that Banco de Galicia y Buenos  Aires S.A.  may
                    possibly  have  to pay in  respect  of  labor  lawsuits  are
                    covered by a provision, which is recorded under "Liabilities
                    - Provisions for Dismissal Indemnities".

                    As of March  31,  2003 the  maximum  risk  faced by Banco de
                    Galicia  y  Buenos   Aires  S.A.  in  respect  of  dismissal
                    indemnities   amounted  to  approximately   US$  37,839.  At
                    December 31, 2002,  the total amount in this respect was US$
                    38,968.

               c.   Differences  between  Argentine Central Bank regulations and
                    professional   accounting   standards   applicable   in  the
                    Autonomous City of Buenos Aires
               Through C.D. Resolutions Nos 238/01,  243/01,  261/01, 262/01 and
               187/02,  the  Professional  Council in  Economic  Sciences of the
               Autonomous  City of Buenos Aires  (CPCECABA)  approved  Technical
               Pronouncements   Nos.   16,  17,  18,  19  and  20  with  certain
               modifications,  adding  changes to the valuation  and  disclosure
               accounting  standards,  the application of which is mandatory for
               fiscal  years  commencing  as from July 1,  2002 and the  interim
               periods  comprised in those fiscal years.  Furthermore,  National
               Securities   Commission  (CNV)  General   Resolution  No.  434/03
               adopted,  with certain  modifications,  Technical  Pronouncements
               Nos.  16 to 20 on the  basis  of the  resolutions  issued  by the
               CPCECABA.  These  regulations  are  mandatory  for  fiscal  years
               commencing as from January 1, 2003.

               At the date these financial statements were approved, the Central
               Bank was  analyzing the scope and timing of the adoption of those
               regulations.  For this  reason,  Banco de Galicia y Buenos  Aires
               S.A. has prepared its financial  statements  without  considering
               the new valuation and disclosure  criteria added to  professional
               accounting  standards in force in the  Autonomous  City of Buenos
               Aires.

               Below is a detail of the main  differences  between the Argentine
               Central Bank regulations and professional accounting standards in
               force in the Autonomous City of Buenos Aires:

               c.1. Valuation criteria

               c.1.a. Restatement to constant currency

                                       21
<PAGE>
                         Grupo Financiero Galicia S.A.
   "Corporation which has not adhered to the Optional System for the Mandatory
                   Acquisition of Shares in a Public Offering"
           Notes to the Consolidated Financial Statements (Continued)
                  (figures stated in thousands of US dollars)

NOTE 3:        (Continued)

               These financial  statements have given recognition to the effects
               of the variations in the  purchasing  power of the currency until
               February 28, 2003,  following the restatement  method established
               by  Technical  Pronouncement  No.  6  (as  amended  by  Technical
               Pronouncement  No. 19) of the FACPCE. As provided for by National
               Executive   Branch  Decree  664/2003,   Argentine   Central  Bank
               Communique  "A" 3921 and CNV Resolution No. 441, Banco de Galicia
               y Buenos Aires S.A.  discontinued  the application of that method
               and,  therefore,  did not recognize the effects of the variations
               in the purchasing power of the currency as from March 1, 2003.
               As  established  by MD  Resolution  No.  10/2003 of the CPCECABA,
               under professional  accounting  standards the application of this
               method remains in effect.
               Nevertheless, taking into account the negative variation of 0.56%
               in the IPIM during March 2003,  the effects  derived from failure
               to recognize those variations in these financial  statements have
               not been significant.

               c.1.b.  Allocation of results of the conversion into pesos of the
               net foreign currency position as of December 31, 2001.

               As of December  31,  2002,  Banco de Galicia y Buenos  Aires S.A.
               allocated  US$ 491,254  (stated in currency of February  2003) to
               the Unrealized Valuation Difference account, in the shareholders'
               equity,  for  the  portion  of the  compensation  received  under
               Sections  28 and  29 of  the  National  Executive  Branch  Decree
               905/02,  which is equivalent to the recognition of 40% of the net
               foreign  currency   position  as  of  December  31,  2001.  Under
               professional accounting standards in force in the Autonomous City
               of Buenos  Aires,  that amount  should  have been  charged to the
               results for that fiscal year.  On April 30, 2003,  the Meeting of
               Shareholders  approved the absorption of accumulated  losses with
               that Reserve.  It should be noted that Grupo  Financiero  Galicia
               S.A. has reflected this situation in its financial statements, as
               explained in point b.12.2 above.

               c.1.c.  Accounting  for income tax  according to the deferred tax
               method

               Banco de Galicia y Buenos Aires S.A. determines income tax at the
               statutory  rate  applicable  to  the  estimated  taxable  income,
               without  considering the effect of any timing differences between
               the accounting and taxable results.

                                       22
<PAGE>
                         Grupo Financiero Galicia S.A.
   "Corporation which has not adhered to the Optional System for the Mandatory
                   Acquisition of Shares in a Public Offering"
           Notes to the Consolidated Financial Statements (Continued)
                  (figures stated in thousands of US dollars)

NOTE 3:        (Continued)

               Under   professional   accounting   standards  in  force  in  the
               Autonomous  City of Buenos  Aires,  income tax must be recognized
               according to the deferred tax method and, therefore, deferred tax
               assets or liabilities calculated on those timing differences must
               be recognized.  In addition,  unused tax loss  carry-forwards  or
               fiscal credits subject to deduction from taxable income in future
               fiscal years should be  recognized as deferred  assets,  provided
               that taxable income is likely to be generated.

               c.1.d. Valuation of assets with the non-financial public sector

               c.1.d.1. Secured loans

               In view of Decree No. 1387/01 dated November 6, 2001,  during the
               fiscal year ended  December 31,  2001,  Banco de Galicia y Buenos
               Aires S.A. exchanged with the National State national  government
               securities  (classified  and  valued  as  "Investment  accounts",
               according to the criteria  established  by the Argentine  Central
               Bank) for secured loans.
               As of March 31, 2003 and 2002, those secured loans were valued at
               the exchange values  established by the Ministry of Economy as of
               November  6,  2001,  plus  accrued  interest  until  period  end,
               converted  to  pesos  at the  exchange  rate of $1.40 = US$ 1 and
               adjusted by applying the CER.
               As of March 31, 2003, Banco de Galicia y Buenos Aires S.A. valued
               those  assets at the lower of  present  or  technical  value,  as
               established by Argentine Central Bank Communique "A" 3911.
               Considering  the  provisions of CD  Resolution  No. 290/01 of the
               CPCECABA,  as of March 31, 2003 and 2002 these assets should have
               been valued on the basis of the  respective  quotation  values of
               the  securities  exchanged  as of  November  6,  2001,  which are
               considered  to be the  transaction  cost as from that date,  plus
               interest accrued until the end of each period.
               The  impact  of  the  application  of  this  criterion  has  been
               disclosed in point b.4. above.

               c.1.d.2. Restructured loans and deposits

               Banco de  Galicia  y Buenos  Aires  S.A.  valued  the  loans  and
               deposits  affected  by  the  measures  adopted  by  the  National
               Government  in line with  regulations  and norms  enacted  by the
               National Government and the Argentine Central Bank.
               Under the new professional  accounting standards,  the changes in
               the original  terms and conditions of the loans and deposits mean
               a substitution

                                       23
<PAGE>
                         Grupo Financiero Galicia S.A.
   "Corporation which has not adhered to the Optional System for the Mandatory
                   Acquisition of Shares in a Public Offering"
           Notes to the Consolidated Financial Statements (Continued)
                  (figures stated in thousands of US dollars)

NOTE 3:        (Continued)

               of the  instruments,  so the new  assets or  liabilities  must be
               recognized  on the  basis of the  best  estimate  of the  amounts
               receivable or payable, discounted at a market rate.

               c.1.d.3.  Compensation to be received,  per Sections 28 and 29 of
               National  Executive Branch Decree 905/02,  and investment account
               securities

               As of March 31,  2003 and 2002,  Banco de Galicia y Buenos  Aires
               S.A.  carries  the  government  securities  received  and  to  be
               received in the  "Government  Securities - holdings in investment
               accounts"  and  Other   Receivables   resulting   from  financial
               brokerage  - Other  not  included  in the  debtor  classification
               regulations"   captions,    respectively,    arising   from   the
               compensation  established  by  Sections  28  and  29 of  National
               Executive Branch Decree 905/02.
               In addition,  there are other valued  securities that are carried
               in investment accounts.
               Under   professional   accounting   standards  in  force  in  the
               Autonomous City of Buenos Aires, the above-mentioned  assets must
               be valued at their current value, as indicated in Note b.3.a.I).
               At the date these financial statements were prepared, the trading
               volume of these securities had not been  significant.  Therefore,
               the  known  market  values  may  not  be  representative  of  the
               realizable value of those assets.

               c.1.d.4. Allowances for receivables from the non-financial public
               sector

               Current regulations on the setting up of allowances issued by the
               Argentine  Central Bank provide that  receivables from the Public
               Sector are not subject to allowances for doubtful accounts. Under
               professional  accounting  standards,  those  allowances  must  be
               estimated on the basis of the uncollectibility  risk attaching to
               those assets.

               c.2. Disclosure issues

               c.2.a. Comparative financial statements

               The new professional  accounting  standards  establish that it is
               mandatory to present  certain  information in the basic financial
               statements  and/or as  supplementary  information,  which has not
               been included in these financial  statements.  Banco de Galicia y
               Buenos Aires S.A. should present the information in the statement
               of  financial  condition  in  comparative  format  with  the same
               statement for the preceding full fiscal year (in this case, as

                                       24
<PAGE>
                         Grupo Financiero Galicia S.A.
   "Corporation which has not adhered to the Optional System for the Mandatory
                   Acquisition of Shares in a Public Offering"
           Notes to the Consolidated Financial Statements (Continued)
                  (figures stated in thousands of US dollars)

NOTE 3:        (Continued)

               of December 31, 2002).  It should be noted that Grupo  Financiero
               Galicia  S.A.  has  conformed  its  individual  and  consolidated
               financial  statements  to  those  disclosure   requirements,   as
               mentioned in Note 2 to the consolidated financial statements.

               c.2.b.  Restatement  to  constant  currency  of  the  comparative
               financial statements
               As established  by MD Resolution  No. 10/03 of the CPCECABA,  the
               March 31, 2002 financial  statements,  presented for  comparative
               purposes,  should have been restated into uniform  currency as of
               March  31,  2003,  as   established   by   applicable   Technical
               Pronouncement  No.6 of the FACPCE.  As  mentioned in the notes to
               these  financial   statements,   the  March  31,  2002  financial
               statements  have  been  restated  into  constant  currency  as of
               February 28, 2003,  as called for by  Communique  "A" 3921 of the
               Argentine Central Bank and Resolution No 441 of the CNV.

               c.2.c. Statement of cash flows
               The criterion for compiling  this  statement  established  by the
               Argentine  Central Bank in its Circular CONAU 1 differs from that
               of Technical Pronouncement No. 19.

               Banco de  Galicia y Buenos  Aires  S.A.  has not  quantified  the
               effect  derived  from  the   application  of  the  new  Technical
               Pronouncements on its financial statements as of March 31, 2003.

NOTE 4:        BASIC INFORMATION CONCERNING THE CONSOLIDATED CONTROLLED ENTITIES

               The basic  information  concerning  the  controlled  entities  is
               disclosed in Note 11 and Schedule C to the  financial  statements
               of Grupo Financiero Galicia S.A..

               Grupo  Financiero  Galicia  S.A.  directly  holds  87.50%  of the
               capital stock and voting rights of Net Investment  S.A.,  Galicia
               Warrants S.A. and  Sudamericana  Holding S.A. and its  controlled
               entity Banco de Galicia y Buenos Aires S.A., the remaining 12.50%
               of the capital stock and voting rights of those companies.



                                       25
<PAGE>
                         Grupo Financiero Galicia S.A.
   "Corporation which has not adhered to the Optional System for the Mandatory
                   Acquisition of Shares in a Public Offering"
           Notes to the Consolidated Financial Statements (Continued)
                  (figures stated in thousands of US dollars)

NOTE 4:        (Continued)

               The financial statements of Net Investment S.A. have in turn been
               consolidated  on a  line-by-line  basis  with the  statements  of
               financial condition,  statements of income and statements of cash
               flows of B2Agro S.A. As of March 31, 2003,  Net  Investment  S.A.
               held the following percentages of equity interests:

               ISSUING COMPANY             % OF CAPITAL      % OF VOTES
                  B2Agro S.A.                  99.99            99.99



               The financial  statements of Sudamericana  Holding S.A. have been
               adapted  to cover a period  of three  months as of  December  31,
               2002, for consolidation purposes. These financial statements have
               in  turn  been  consolidated  on a line by line  basis  with  the
               statements  of  financial   condition,   income   statements  and
               statements of cash flows of Aseguradora de Personas  Galicia S.A.
               (formerly  Hartford  Seguros de Vida  S.A.),  Instituto  de Salta
               Seguros de Vida  S.A.,  Galicia  Retiro  Cia.  de  Seguros  S.A.,
               Galicia Vida Cia. de Seguros S.A.,  Medigap Salud S.A.  (formerly
               Hartford Salud S.A.) and  Sudamericana  Asesores de Seguros S.A..
               As of December  31,  2002,  Sudamericana  Holding  S.A.  held the
               following equity percentages:

               ISSUING COMPANY             % OF CAPITAL      % OF VOTES
               Aseguradora de Personas
                 Galicia S.A. (formerly
                 Hartford Seguros de
                 Vida S.A.                    99.99            99.99
               Instituto de Salta Seguros
                 de Vida S.A.                 99.99            99.99
               Galicia Retiro Cia. de
                 Seguros S.A.                 99.99            99.99
               Galicia Vida Cia. de
                 Seguros S.A.                 99.99            99.99
               Medigap Salud S.A.
                 (formerly Hartford
                 Salud S.A.)                  99.99            99.99
               Sudamericana Asesores
                 de Seguros S.A.              99.97            99.97


               The financial  statements of Banco de Galicia y Buenos Aires S.A.
               as of March 31, 2003 and 2002 include the assets, liabilities and
               results of the controlled entities detailed below:



                                       26
<PAGE>
                         Grupo Financiero Galicia S.A.
   "Corporation which has not adhered to the Optional System for the Mandatory
                   Acquisition of Shares in a Public Offering"
           Notes to the Consolidated Financial Statements (Continued)
                  (figures stated in thousands of US dollars)

NOTE 4:        (Continued)

<TABLE>
<CAPTION>
                                                       as of March 31, 2003
               --------------------------------------------------------------------------------------------------
                                                                                          PERCENTAGE OF INTEREST
                             ISSUING COMPANY                         SHARES                      HELD IN
               ------------------------------------------ --------------------------- ---------------------------
                                                                                         TOTAL       POSSIBLE
                                                             TYPE         NUMBER        CAPITAL        VOTES
               ------------------------------------------ ------------- ------------- ------------- -------------
<S>                                                      <C>            <C>           <C>           <C>
               BANCO GALICIA URUGUAY S.A.                  Ordinary         13,375*        100.00        100.00
               TARJETAS REGIONALES S.A.                      Ord.        70,834,138     68.218539     68.218539
                                                          Book-entry
               GALICIA CAPITAL MARKETS S.A.                  Ord.            99,990         99.99         99.99
                                                          Book-entry
               GALICIA FACTORING Y LEASING S.A.              Ord.         1,889,700         99.98         99.98
                                                          Book-entry
               AGRO GALICIA S.A.                             Ord.           247,500         99.00         99.00
                                                          Book-entry
               GALICIA VALORES S.A. SOC. DE BOLSA            Ord.           999,996         99.99         99.99
                                                          Book-entry
</TABLE>
               * Stated at a face value of 1,000 Uruguayan pesos.



<TABLE>
<CAPTION>
                                                    as of December 31, 2002
               ---------------------------------------------------------------------------------------------------
                                                                                         PERCENTAGE OF INTEREST
                           ISSUING COMPANY                          SHARES                      HELD IN
               ------------------------------------------ ----------------------------- --------------------------
                                                                                         TOTAL        POSSIBLE
                                                              TYPE          NUMBER       CAPITAL        VOTES
               ------------------------------------------ --------------- ------------- ------------ -------------
<S>                                                       <C>             <C>           <C>          <C>
               BANCO GALICIA URUGUAY S.A.                   Ordinary          13,375*       100.00        100.00
               TARJETAS REGIONALES S.A.                       Ord.         70,834,138    68.218539     68.218539
                                                           Book-entry
               GALICIA CAPITAL MARKETS S.A.                   Ord.             99,990        99.99         99.99
                                                           Book-entry
               GALICIA FACTORING Y LEASING S.A.               Ord.          1,889,700        99.98         99.98
                                                           Book-entry
               AGRO GALICIA S.A.                              Ord.            247,500        99.00         99.00
                                                           Book-entry
               GALICIA VALORES S.A. SOC. DE BOLSA             Ord.            999,996        99.99         99.99
                                                           Book-entry
 </TABLE>
               * Stated at a face value of 1,000 Uruguayan pesos.

<TABLE>
<CAPTION>
                                                       As of March 31, 2003
               -----------------------------------------------------------------------------------------------------
                                                           ASSETS     LIABILITIES    SHAREHOLDERS'       RESULTS
                                                                                         EQUITY           (**)
               ------------------------------------------ ----------- ------------- ------------------ -------------
<S>                                                       <C>         <C>           <C>                 <C>
               TARJETAS REGIONALES S.A.                      206,953       228,452           (21,499)         (973)
               GALICIA CAPITAL MARKETS S.A.                   12,285         7,702              4,583       (1,228)
               GALICIA FACTORING Y LEASING S.A.                2,042           229              1,813         (202)
               AGRO GALICIA S.A.                                  69             3                 66           (8)
               GALICIA VALORES S.A. SOC. DE BOLSA             10,394         6,350              4,044          169
</TABLE>
               (*) See Note 3b.7.a. to the consolidated financial statements.

                                       27
<PAGE>
                         Grupo Financiero Galicia S.A.
   "Corporation which has not adhered to the Optional System for the Mandatory
                   Acquisition of Shares in a Public Offering"
           Notes to the Consolidated Financial Statements (Continued)
                  (figures stated in thousands of US dollars)

NOTE 4:        (Continued)

<TABLE>
<CAPTION>
                                                     as of December 31, 2002
               -----------------------------------------------------------------------------------------------------
                              ISSUING COMPANY                 ASSETS     LIABILITIES    SHAREHOLDERS'       RESULTS
                                                                                            EQUITY           (**)
                ------------------------------------------ ----------- ------------- ------------------ -------------
<S>                                                        <C>         <C>           <C>                <C>
                TARJETAS REGIONALES S.A.                      200,942       221,495           (20,553)      (85,051)
                GALICIA CAPITAL MARKETS S.A.                   13,108         7,290              5,818      (10,894)
                GALICIA FACTORING Y LEASING S.A.                2,280           261              2,019           602
                AGRO GALICIA S.A.                                  79             4                 75          (34)
                GALICIA VALORES S.A. SOC. DE BOLSA              5,296         1,422              3,874         1,526
</TABLE>

               The  Financial  Statements of the  controlled  entities have been
               conformed to the valuation and disclosure  standards laid down by
               the  Argentine  Central Bank and cover the same period as that of
               the financial statements of Banco de Galicia y Buenos Aires S.A..

               Banco  Galicia  Uruguay S.A. and Banco Galicia  (Cayman)  Limited
               have not been  consolidated  as of March 31, 2003,  nor have they
               been included in the comparative  information  (see Note 1 to the
               financial statements).

               The March 31, 2003  financial  statements of Tarjetas  Regionales
               S.A., which were used for  consolidation  purposes,  have in turn
               been  consolidated on a line-by-line  basis with those of Tarjeta
               Naranja S.A.,  Tarjetas  Cuyanas S.A.,  Tarjeta  Comfiar S.A. and
               Tarjetas del Mar S.A., in which Tarjetas  Regionales S.A. holds a
               controlling interest.


               a) The  percentages  directly  held in those  companies'  capital
               stock are as follows:

<TABLE>
<CAPTION>
                                 Company                              3.31.03                  12.31.02
               ---------------------------------------------- ------------------------- -------------------------
<S>                                                           <C>                       <C>
               Tarjetas Cuyanas S.A.                                    60%                       60%
               Tarjetas del Mar S.A. (*)                               100%                      100%
               Tarjeta Naranja S.A.                                     80%                       80%
               Tarjeta Comfiar S.A.                                     60%                       60%
</TABLE>
               (*) On  May  15,  2002  Tarjetas  Regionales  S.A.  acquired  the
               remaining  50% of the shares  and on August 9,  2002,  a share in
               Tarjetas del Mar S.A. was sold to Tarjeta Naranja S.A..

               b) The percentages  indirectly held in those  companies'  capital
               stock through the controlled  entity Tarjeta  Naranja S.A. are as
               follows:

<TABLE>
<CAPTION>
                                Company                             3.31.03                   12.31.02
               -------------------------------------------- ------------------------- ---------------------------
<S>                                                         <C>                        <C>
               Tarjeta Comfiar S.A.                                   32%                        32%
</TABLE>

                                       28
<PAGE>
                         Grupo Financiero Galicia S.A.
   "Corporation which has not adhered to the Optional System for the Mandatory
                   Acquisition of Shares in a Public Offering"
           Notes to the Consolidated Financial Statements (Continued)
                  (figures stated in thousands of US dollars)

NOTE 4:        (Continued)

               Tarjeta Naranja S.A.  financial  statements for both periods have
               in turn  been  consolidated  with  the  financial  statements  of
               Cobranzas  Regionales  S.A.,  in which it holds  66.4% of  voting
               stock.

               Furthermore,  Tarjeta Comfiar S.A. and Tarjetas Cuyanas S.A. hold
               21.3%  and  12.3%  interests,  respectively,  in  that  company's
               capital stock and voting rights.

               The financial  statements of Galicia Capital Markets S.A. include
               the quarterly statement of financial condition,  income statement
               and statement of cash flows of that company,  whose balances have
               been  consolidated  on a line-by-line  basis,  with the quarterly
               statement of financial condition,  income statement and statement
               of cash flows of Galicia  Advent  Corporation  Limited,  in which
               that company  holds a 57.89% equity  interest and Galicia  Equity
               Analysis S.A., in which it holds a 99 % controlling interest.




NOTE 5:        MINORITY INTEREST IN CONSOLIDATED INSTITUTIONS OR COMPANIES

               The portion of the net worth of the controlled investees owned by
               third  parties has been  disclosed in the  Statement of Financial
               Condition,   under  the   "Minority   interest  in   consolidated
               institutions or companies" caption.

               The  result of  minority  interests  is  disclosed  in the Income
               Statement under "Result of Minority Interest".


               As of March  31,  2003 and  2002,  the  percentages  of  minority
               interest are as follows:



                                       29
<PAGE>
                         Grupo Financiero Galicia S.A.
   "Corporation which has not adhered to the Optional System for the Mandatory
                   Acquisition of Shares in a Public Offering"
           Notes to the Consolidated Financial Statements (Continued)
                  (figures stated in thousands of US dollars)

NOTE 5:        (Continued)

<TABLE>
<CAPTION>
                                  Company                             3.31.03                   12.31.02
               ---------------------------------------------- ------------------------- -------------------------
<S>                                                            <C>                       <C>
               Banco de Galicia y Bs. As. S.A.                        6.41446%                  6.41446%
               Net Investment S.A.                                    0.80181%                  0.80181%
               Sudamericana Holding S.A.                              0.80175%                  0.80175%
               Galicia Warrants S.A.                                  0.80181%                  0.80181%
               B2Agro S.A.                                            0.81007%                  0.81007%
               Net Investment B.V.                                    0.80181%                  0.80181%
               Aseguradora de Personas Galicia S.A.
               (formerly Hartford Seguros de Vida S.A.)               0.80234%                  0.80234%
               Medigap Salud S.A.  (formerly  Hartford Salud
               S.A.)                                                  0.81002%                  0.81002%
               Instituto de Salta Seguros de Vida S.A.                0.80211%                  0.80211%
               Galicia Retiro Cia. De Seguros S.A.                    0.80188%                  0.80188%
               Galicia Vida Cia. de Seguros S.A.                      0.80190%                  0.80190%
               Sudamericana Asesora de Seguros S.A.                  0.831509%                 0.831509%
</TABLE>

               In the  case of  Banco  de  Galicia  y  Buenos  Aires  S.A.,  the
               breakdown  of  supplementary  equity  interests  included  in the
               "Minority Interests" caption is as follows:

<TABLE>
<CAPTION>
                                          Company                                 3.31.03           12.31.02
               ------------------------------------------------------------- ----------------- ------------------
<S>                                                                           <C>              <C>
               Galicia Valores S.A. Sociedad de Bolsa                             0.01%              0.01%
               Galicia Capital Markets S.A.                                       0.01%              0.01%
               Galicia Factoring y Leasing S.A.                                   0.02%              0.02%
               Galicia Administradora de Fondos S.A. Soc. Gerente de Fondos         -               0.015%
               Comunes de Inversion
               Agro Galicia S.A.                                                  1.00%              1.00%
               Tarjeta Comfiar S.A.                                               8.00%              8.00%
               Tarjetas Cuyanas S.A.                                              40.00%            40.00%
               Tarjeta Naranja S.A.                                               20.00%            20.00%
               Galicia Advent Corporation Limited                                 42.11%            42.11%
               Galicia Equity Analysis S.A.                                       1.00%              1.00%
               Cobranzas Regionales S.A.                                         19.904%            19.904%
</TABLE>

NOTE 6:        RESTRICTED ASSETS

               As of March 31,  2003,  Banco de  Galicia y Buenos  Aires  S.A.'s
               ability to dispose of the  following  assets  pertaining to local
               branches was restricted as follows:

                                       30
<PAGE>
                         Grupo Financiero Galicia S.A.
   "Corporation which has not adhered to the Optional System for the Mandatory
                   Acquisition of Shares in a Public Offering"
           Notes to the Consolidated Financial Statements (Continued)
                  (figures stated in thousands of US dollars)

NOTE 6:        (Continued)

               a. Funds and Government Securities
               Banco de Galicia y Buenos Aires S.A. has  deposited  US$ 7,269 in
               escrow as a guarantee towards third parties in respect of its own
               transactions.  Also,  US$ 4,716 have been  deposited to guarantee
               transactions with Argentine financial institutions.

               Within the framework of Decree 979/2001 of the National Executive
               Branch,  Banco de Galicia y Buenos  Aires S.A.  has  advanced the
               National State funds on account of tax  obligations  and received
               in exchange Fiscal Credit Certificates for US$ 33,079, which have
               been recognized in Government Securities.  These certificates may
               be used for  settling  taxes,  under  the  conditions  set out in
               Resolution  38/2003 of the  Ministry of Economy,  as from January
               2003.

               Furthermore,  as of March 31,  2003,  BODEN  2012 for US$  60,373
               (face value: 60,246,900), received in respect of the compensation
               to financial  institutions,  have been provided as collateral for
               the  subscription of bonds pertaining to depositors who opted for
               them, as established by Decree No. 1836/02.

               b. Special Accounts as Collateral for Transactions
               Banco de Galicia y Buenos Aires S.A. has opened special  accounts
               with the Argentine  Central Bank as collateral  for  transactions
               involving  electronic clearing houses,  checks for settling debts
               and  other  similar  transactions  which,  as of March  31,  2003
               amounted to US$ 19,463.

               c. Deposits in favor of the Argentine Central Bank
               These  have  been  set up in line  with  Argentine  Central  Bank
               regulations:

               - Communique "A" 1190                      US$   179
               - Communique "A" 2923                      US$ 1,243

               d. Fund for assistance to financial institutions
               As of March 31,  2003  Banco de Galicia y Buenos  Aires S.A.  had
               deposited  secured  loans for US$ 59,290 in guarantee of the Fund
               for assistance to Financial Institutions.

               e. Guarantees provided to the Argentine Central Bank
               As of March 31,  2003,  Banco de Galicia y Buenos  Aires S.A. has
               transferred  loans to the public sector in favor of the Argentine
               Central

                                       31
<PAGE>
                         Grupo Financiero Galicia S.A.
   "Corporation which has not adhered to the Optional System for the Mandatory
                   Acquisition of Shares in a Public Offering"
           Notes to the Consolidated Financial Statements (Continued)
                  (figures stated in thousands of US dollars)

NOTE 6:        (Continued)

               Bank, as collateral  for advances of US$ 1,873,566 for assistance
               received to cover temporary lack of liquidity.

               f. Equity interests in Other Companies
               Banco de Galicia y Buenos Aires S.A. has granted a senior  pledge
               on all its  shares in  Correo  Argentino  S.A.,  in favour of the
               International  Finance  Corporation,  Inter American  Development
               Bank and a syndicate of domestic institutions,  as collateral for
               financing   granted  to  that  company.   This   transaction  was
               authorized by the Argentine  Central Bank through  resolution No.
               408 dated September 9, 1999.

               According  to the contract  signed,  in the event of a deficit in
               funds,  Banco de  Galicia y Buenos  Aires S.A.  and the  majority
               shareholder of Correo  Argentino  S.A.  should hold the financial
               creditors  harmless from any  non-compliance  as a result of such
               deficit. Under the terms of the contract, Correo Argentino should
               inform Banco de Galicia y Buenos  Aires S.A. and Socma  Americana
               S.A.  of the  existence  of any  deficit.  At the  date of  these
               financial  statements,  Banco de Galicia y Buenos  Aires S.A. had
               not been notified of any requirement in this connection.

               "Equity  interests  in Other  Companies"  includes  shares  whose
               transferability  is subject to the prior approval of the National
               or Provincial authorities, as applicable,  under the terms of the
               concession contracts signed:
               - Aguas Argentinas S.A.:  3,236,879 book-entry class F shares and
               522,887 book-entry class E shares.
               - Aguas Provinciales de Santa Fe S.A.: 3,600,000 book-entry class
               F shares and 62,500 book-entry class D shares
               -  Inversora  Diamante  S.A.:   1,606,117   ordinary   book-entry
               non-transferable shares.



                                       32
<PAGE>
                         Grupo Financiero Galicia S.A.
   "Corporation which has not adhered to the Optional System for the Mandatory
                   Acquisition of Shares in a Public Offering"
           Notes to the Consolidated Financial Statements (Continued)
                  (figures stated in thousands of US dollars)


NOTE 6:        (Continued)

               -  Inversora  Nihuiles  S.A.:   1,184,093   ordinary   book-entry
               non-transferable shares.
               -   Electrigal    S.A.:    1,222,406.50    ordinary    registered
               non-endorsable non-transferable shares.
               - Aguas Cordobesas S.A.: 900,000 ordinary class E shares.
               - Correo  Argentino S.A.:  12,462,021  ordinary  non-transferable
               class B shares.

               As a  shareholder  of the  concessionaires  of the  water  supply
               services,  Aguas Argentinas S.A., Aguas  Provinciales de Santa Fe
               S.A. and Aguas  Cordobesas  S.A., Banco de Galicia y Buenos Aires
               S.A.  and  the  other  shareholders  have  committed  to  provide
               financial  support  to those  companies  if they  were  unable to
               fulfill the commitments  they have undertaken with  international
               financial bodies.

               The Inter  American  Development  Bank (IDB)  requested  that the
               shareholders of Aguas  Argentinas S.A. and Aguas  Provinciales de
               Santa Fe S.A.  grant loans to those  companies.  On February  18,
               2003,  financial  assistance was granted to Aguas Argentinas S.A.
               in the  amount  of US$  598,  while  the  obligation  to  provide
               assistance to Aguas  Provinciales  de Santa Fe S.A. is not deemed
               to exist.
               At December 31, 2002,  the total amount of restricted  assets was
               US$ 1,996,990.

               In  addition,  as of March 31, 2003 and 2002 the ability of Banco
               de Galicia y Buenos Aires S.A. to dispose of the assets  existing
               at its controlled entities subject to consolidation is restricted
               as follows:

               a. Galicia Valores S.A. Sociedad de Bolsa:
               As of March 31, 2003 this company held three shares of Mercado de
               Valores de Buenos Aires S.A.  securing an insurance  covering its
               transactions for US$ 1,862.



                                       33
<PAGE>
                         Grupo Financiero Galicia S.A.
   "Corporation which has not adhered to the Optional System for the Mandatory
                   Acquisition of Shares in a Public Offering"
           Notes to the Consolidated Financial Statements (Continued)
                  (figures stated in thousands of US dollars)

NOTE 6:        (Continued)

               b. Tarjetas Cuyanas S.A.
               As of March 31,  2003,  Banco de  Galicia y Buenos  Aires  S.A.'s
               ability  to dispose of time  deposits  for US$ 30 was  restricted
               because  this  amount  was   earmarked  to  secure  a  Collection
               Agreement  signed  with  the  Revenue  Board of the  Province  of
               Mendoza.
               c. Tarjeta Naranja S.A.
               On September 23, 2002 and October 25, 2002 three attachments were
               levied on funds  deposited in a current  account for US$ 482 that
               this company holds with Banco de Galicia y Buenos Aires S.A.

NOTE 7:        TRUST ACTIVITIES

               a) Trust Contracts as security for compliance with obligations
               Purpose: to secure compliance with contractual  obligations,  the
               parties to these contracts have agreed to deliver in trust to the
               Bank amounts to be invested according to the following detail:

<TABLE>
<CAPTION>
      Contract date                        Trustor                     Trust fund              Due Date
                                                                        balance
                                                                          US$
<S>                       <C>                                         <C>                <C>
         05.15.98          Natalio Garber y Silvia Chait de Garber         21,328            05.15.03 (1)
         01.06.98          Eduardo Sumic y Ercides Ciani                       20            07.07.07 (1)
         09.20.02          Tarjeta Naranja S.A.                             1,471            05.31.10 (2)
         09.20.02          Tarjetas Cuyanas S.A.                              172            05.31.10 (2)
         10.31.02          Tarjetas Cuyanas S.A.                               62            05.31.10 (2)
         02.07.03          Tarjeta Naranja S.A.                               329            01.31.11 (2)
</TABLE>

               b) Administration Trust Agreements
               Purpose:  to administer  and exercise the financial  ownership of
               the trust assets.

<TABLE>
<CAPTION>
      Contract date                        Trustor                     Trust fund balance          Due date
                                                                              US$
<S>                       <C>                                          <C>                     <C>
         12.23.02          Coca-Cola de Argentina S.A.                        415                12.31.04 (2)
</TABLE>



                                       34
<PAGE>
                         Grupo Financiero Galicia S.A.
   "Corporation which has not adhered to the Optional System for the Mandatory
                   Acquisition of Shares in a Public Offering"
           Notes to the Consolidated Financial Statements (Continued)
                  (figures stated in thousands of US dollars)

NOTE 7:        (Continued)



               (1) These amounts will be released upon maturity or when the Bank
               receives instructions in accordance with contract stipulations.
               (2) These  amounts will be released  monthly until the earlier of
               the settlement date of trustor obligations or the due date.

NOTE 8:       NEGOTIABLE OBLIGATIONS AND OTHER DEBT SECURITIES

               a) Banco de Galicia y Buenos  Aires  S.A.  - Ordinary  Negotiable
               Obligations

               a.1) As of March 31,  2003,  Banco de Galicia y Buenos Aires S.A.
               had the following negotiable obligation issues outstanding:

<TABLE>
<CAPTION>
                                                                                                ISSUE
                  ISSUE DATE          FACE VALUE            TERM               RATE         AUTHORIZED BY
                                                                                             THE NATIONAL
                                                                                              SECURITIES
                                                                                              COMMISSION
               ------------------- ------------------ ------------------- ---------------- ------------------
<S>                                <C>                <C>                  <C>              <C>
                   11.08.93            200,000            10 years            9.00 %           10.08.93
</TABLE>

               a.2) Under the global  program  for issuing  ordinary  negotiable
               obligations  approved by the Shareholders'  Meeting held on March
               3, 1993,  as of March 31,  2003,  Banco de Galicia y Buenos Aires
               S.A. had the following negotiable obligation issue outstanding:

<TABLE>
<CAPTION>
                                                                                                ISSUE
                  ISSUE DATE          FACE VALUE            TERM              RATE          AUTHORIZED BY
                                                                                             THE NATIONAL
                                                                                              SECURITIES
                                                                                              COMMISSION
               ------------------- ------------------ ------------------ ----------------- ------------------
<S>                                <C>                 <C>               <C>               <C>
                    08.07.97            150,000*          1,825 days            (1)           08.02.93 and
                                                                                                12.20.94
</TABLE>
               (1) On the interest  payment  dates falling due in August 2001 or
               before, Libor plus 1.625%
               (*) This issue has fallen due.



                                       35
<PAGE>
                         Grupo Financiero Galicia S.A.
   "Corporation which has not adhered to the Optional System for the Mandatory
                   Acquisition of Shares in a Public Offering"
           Notes to the Consolidated Financial Statements (Continued)
                  (figures stated in thousands of US dollars)

NOTE 8:        (Continued)


               a.3) The Ordinary  Shareholders'  Meeting  held on September  30,
               1997,  authorized  the creation of a Global Program for a maximum
               total amount of US$  1,000,000  for issuing  ordinary  negotiable
               obligations,  not convertible  into shares which may be issued in
               pesos, US dollars or other currencies.

               As of March 31,  2003,  Banco de Galicia y Buenos  Aires S.A. had
               the following short and medium-term  negotiable obligation issues
               outstanding under the above program:
<TABLE>
<CAPTION>
                                                                                               ISSUE AUTHORIZED
                  ISSUE DATE          FACE VALUE            TERM                RATE           BY THE NATIONAL
                                                                                                  SECURITIES
                                                                                                  COMMISSION
               ------------------- ------------------ ------------------ -------------------- --------------------
<S>                                 <C>               <C>                <C>                   <C>
                   12.20.00            44,444(*)         1,825 days        Libor plus 2%           04.22.98
                   06.11.01            10,667(*)         1,653 days        Libor plus 2%           04.22.98
                   07.19.02            72,635            1,840 days            7.875%              04.22.98
                   07.19.02            43,161            1,840 days       Libor - 6 months         04.22.98
                                                                              plus 4%
</TABLE>
               (*) On December 20, 2001, the first installment was amortized for
               a face value of 5,556 and 1,333, respectively.

               The Meeting of  Shareholders  held on September 26, 2001 ratified
               the  powers  previously  vested  in the  Board  of  Directors  in
               connection with the programs referred to in sections a.3)

               a.4) The  Meeting of  Shareholders  held on  September  26,  2001
               approved  the  issue  of  subordinated   negotiable  obligations,
               convertible into ordinary,  book-entry,  class "B" shares, with a
               face value of US$ 0.0003 each and entitled to one vote per share,
               for a total amount of up to US$ 200,000.
               That  meeting of  shareholders  vested the Board of  Directors of
               Banco de Galicia y Buenos  Aires S.A.  with the powers to set the
               issue  terms and  conditions,  including  the  amount and date of
               issue.  That Board of Directors  has not  resolved  this issue so
               far. An objection to this Meeting of Shareholders  has been filed
               before the court by the  minority  shareholders  of that  Entity,
               Theseus S.A. and Lagarcue S.A.,  which  represent 2.07% and 3.35%
               of the  capital  stock and are  controlled  by Ms.  Maria  Isabel
               Escasany.

                                       36
<PAGE>
                         Grupo Financiero Galicia S.A.
   "Corporation which has not adhered to the Optional System for the Mandatory
                   Acquisition of Shares in a Public Offering"
           Notes to the Consolidated Financial Statements (Continued)
                  (figures stated in thousands of US dollars)

NOTE 8:        (Continued)

               As of March 31,  2003 and  2001,  the  amount  of the  negotiable
               obligations  in  respect  of  principal  and  interest,   net  of
               discounts, was US$ 553,705 and US$ 629,738, respectively, and was
               used in accordance  with the provisions of Communique "A" 1907 of
               the Argentine  Central Bank for  providing  financing to domestic
               companies  with  regard  to  investments  in  physical  assets in
               Argentina,  providing working capital or refinancing liabilities,
               granting  consumer  and  mortgage  loans  for  financing  housing
               construction,  investments  in  the  share  capital  of  domestic
               companies  and other  purposes  envisaged in the above  mentioned
               Communique.

               b) Banco de Galicia y Buenos Aires S.A.'s controlled  companies -
               Issue of negotiable obligations and other debt securities

               During  the  current   period,   various   Series  of  short  and
               medium-term  Negotiable  Obligations  issued by Tarjetas  Cuyanas
               S.A.,  Tarjetas  del Mar S.A.,  Tarjeta  Comfiar S.A. and Tarjeta
               Naranja S.A.  fell due. The  difficult  situation  affecting  the
               Argentine  economy and  particularly  the financial  system,  the
               devaluation of the peso and the  difficulties in accessing credit
               on the domestic and foreign markets have had an adverse effect on
               the ability of those companies to meet their payment obligations.

               Within that environment,  each of those companies have undertaken
               a process for the  renegotiation  of their  debts for  negotiable
               obligations,  which has presented  different  characteristics and
               different  degrees of progress  and/or  definitions  so far. As a
               result,   the  criteria  used  for  valuing  these  debts  varied
               according to the facts and  judgmental  elements each company had
               in  relation to those  debts when they  issued  their  respective
               financial statements.
               Below is disclosed  the  situation of each of those  companies in
               relation to these debts as of March 31, 2003,  and the  valuation
               criteria followed:

               Tarjetas Cuyanas S.A.:

               On May 23 and October 31,  2002,  that  company  entered  into an
               agreement  with   Administraciones   Fiduciarias   S.A.  for  the
               redemption  of its  Negotiable  Obligations  through the issue of
               debt certificates.

               At the end of the period of three  months  ended March 31,  2003,
               holders of  negotiable  obligations  adhered to the  exchange  of
               negotiable  obligations  for debt  certificates  in the amount of
               approximately US$ 5,000 and US$ 1,180, respectively. At March 31,
               2003, the Company has valued this

                                       37
<PAGE>
                         Grupo Financiero Galicia S.A.
   "Corporation which has not adhered to the Optional System for the Mandatory
                   Acquisition of Shares in a Public Offering"
           Notes to the Consolidated Financial Statements (Continued)
                  (figures stated in thousands of US dollars)

NOTE 8:        (Continued)

               debt at  approximately  US$ 4,180, a figure  obtained by applying
               the present value method to the future discounted cash flows.
               For purposes of applying the valuation  method  mentioned  above,
               Tarjetas  Cuyanas S.A.  has taken as a premise for the  agreement
               entered into on May 23, 2002 a nominal  annual  discount  rate of
               11% and a cash flow made up of 5% of the monthly  collections  of
               receivables  derived from the use of credit cards for a term of 8
               years  counted  as from the  earlier of June 1, 2002 or until the
               full  amortization  of the subscribed  certificates,  and for the
               agreement  entered  into on October 31,  2002,  a nominal  annual
               discount  rate of 11% and a cash  flow  made up of  1.75%  of the
               monthly collections of receivables derived from the use of credit
               cards  for a term of 7 years and 7  months,  counted  as from the
               earlier of November 1, 2002 or until the full amortization of the
               subscribed certificates.

               The above-mentioned cash flows are made up of:
               a) receivables derived from the use of credit cards;
               b) consumer loans granted by the Company to the holders of credit
               cards issued by it; and
               c) refinancing of receivables mentioned in a) and b).
               As a result of those  transactions  and of certain payments made,
               the  Company  records  due  and  payable  negotiable  obligations
               amounting to approximately  US$ 3,910 as of March 31, 2003. As of
               March 31,  2003,  Tarjetas  Cuyanas  S.A. had valued this debt by
               approximately  US$ 2,430,  which  represent the redemption  value
               estimated by the management of Tarjetas Cuyanas S.A. on the basis
               of the  negotiations  carried out so far. If this debt were to be
               valued at the free US dollar exchange rate, an additional loss of
               approximately US$ 1,497 would be generated at period end.

               The maximum  risk  associated  with the  situations  described in
               relation to the financial  statements of Tarjetas Regionales S.A.
               amounts to US$ 898.

               Tarjetas del Mar S.A.:
               On March 4, 2002 the  Company  informed  the Buenos  Aires  Stock
               Exchange and the National  Securities  Commission of its decision
               to  postpone  for 120  days the  payment  to the  holders  of the
               overdue  negotiable   obligations  issued  by  the  Company.   In
               subsequent  notifications  made on June 18 and October 16,  2002,
               new  extensions of the due dates of negotiable  obligations  were
               requested.  So far,  the  related  interest  payable  monthly  in
               advance was recognized at the rate of 14.92% per annum.

                                       38
<PAGE>
                         Grupo Financiero Galicia S.A.
   "Corporation which has not adhered to the Optional System for the Mandatory
                   Acquisition of Shares in a Public Offering"
           Notes to the Consolidated Financial Statements (Continued)
                  (figures stated in thousands of US dollars)

NOTE 8:        (Continued)

               As informed in the letter  submitted to the  National  Securities
               Commission on November 18, 2002,  Banco de Galicia y Buenos Aires
               S.A.,  the  indirect  controlling  shareholder  of  the  Company,
               requested  authorization  from  the  Argentine  Central  Bank  to
               implement  a  procedure  to  enable  the  holders  of  Negotiable
               Obligations  issued by Tarjetas del Mar S.A. to exchange them for
               debt  certificates  secured  by a trust to be issued  by  Tarjeta
               Naranja S.A. (a company indirectly controlled by Banco de Galicia
               y Buenos Aires S.A.).

               The operation  schedule  proposed is the following:  (i) Tarjetas
               del Mar S.A.  issues a debt  certificate  for US$15,000,  payable
               within 10 years in 10 annual and consecutive  installments;  (ii)
               Tarjetas  del Mar S.A.  exchanges  with Banco de Galicia  (Cayman
               Branch),  its own debt  certificate  for a certificate  issued by
               Tarjeta  Naranja  S.A.,  which is held by that branch of Banco de
               Galicia;  and (iii)  Tarjetas del Mar S.A.  offers the holders of
               its  Negotiable   Obligations  to  exchange  them  for  the  debt
               certificate  issued by Tarjeta Naranja S.A. The Argentine Central
               Bank has not made any observations in relation to this procedure,
               concerning matters within its field of competence.
               The Company is currently  offering the holders of its obligations
               to exchange the Negotiable  Obligations issued by the Company for
               the debt  certificate  issued by Tarjeta Naranja S.A., for a term
               of eight  years,  secured  by a trust  fund  formed  by 1% of its
               collections.  Thus,  the holders of  Negotiable  Obligations  can
               access a mechanism that has been widely accepted by the creditors
               of  Tarjeta  Naranja  S.A.,  and  if  no  new  public   emergency
               situations  take  place  in  the  Argentine  economy  and  in the
               financial  system in  particular,  it will enable them to collect
               the total amount that Tarjetas del Mar S.A.  would have owed them
               if legislation on public emergency had not been issued.
               As of March  31,  2003,  the  balance  of the  Global  Negotiable
               Obligation  Program issued,  which continue to be due and payable
               is equivalent  to an amount of US$ 1,946.  The Board of Directors
               of the Company has valued the negotiable  obligations as of March
               31,  2003,  as follows:  US$ 1,766  thousand  (face value) at the
               exchange rate of US$ 1 = $ 1, plus CER, and US$ 180 (face value9,
               at the  exchange  rate  of U$S 1 = $  1.40.  If all  the  due and
               payable  negotiable  obligations  as of March 31, 2003 were to be
               valued at the free US dollar exchange rate, an additional loss of
               approximately US$ 1,011 would be generated at period end.

               The maximum risk attaching to these situations,  which could have
               an impact on the  financial  statements  of  Tarjetas  Regionales
               S.A., amounted to approximately US$ 1,011.

               Tarjeta Comfiar S.A.:

                                       39
<PAGE>
                         Grupo Financiero Galicia S.A.
   "Corporation which has not adhered to the Optional System for the Mandatory
                   Acquisition of Shares in a Public Offering"
           Notes to the Consolidated Financial Statements (Continued)
                  (figures stated in thousands of US dollars)


NOTE 8:        (Continued)

               In view of the  operating  impossibility  of this  company  fully
               redeeming  Series IX of Negotiable  Obligations  that fell due on
               January  15,  2002,  a debt  of US$ 370  (face  value)  has  been
               recognized in its  financial  statements at a rate of exchange of
               US$1=$1,  plus CER,  which as of March 31, 2003 was equivalent to
               US$ 54.

               As  established  by  current  public  order  regulations  on this
               matter,  Tarjeta  Comfiar  S.A.  considers  that in all cases the
               criterion  applicable would be the redemption of those negotiable
               obligations  at the exchange rate of US$1=$1,  plus CER,  because
               that Series was issued prior to January 6, 2002.
               If all the due and payable  negotiable  obligations,  which as of
               March 31, 2003 amounted to US$ 370, were to be valued at the free
               US dollar exchange rate, an additional loss of approximately  US$
               192 would be generated at period end.

               The maximum risk  attaching to these  situations on the financial
               statements of Tarjetas Regionales S.A. amounts to US$ 177.

               Tarjeta Naranja S.A.:
               On May 23,  2002 and  February  7,  2003,  Tarjeta  Naranja  S.A.
               executed  two   agreements   for  the  redemption  of  negotiable
               obligations  and the issuance of debt  certificates in US dollars
               secured by a trust.  As of March 31, 2003,  holders of negotiable
               obligations had adhered to those  agreements in the amount of US$
               64,477,  the  residual  value  of  those  negotiable  obligations
               amounting to U$S 56,897 at closing date.
               The debt certificates have been valued by determining the present
               value of the cash flow  involved,  converted at the exchange rate
               prevailing  on  the  transaction  date.  The  application  of the
               present  value  method to this  financial  debt,  recommended  by
               Technical  Pronouncement  No. 17 of the  Argentine  Federation of
               Professional  Councils in Economic  Sciences  and approved by the
               Professional  Council in  Economic  Sciences  of the  Province of
               Cordoba,   results  in  US$  49,567   (including   principal  and
               interest).

               As  of  March  31,  2003,  the  overdue  balance  of  the  Global
               Negotiable  Obligation Program not yet collected by their holders
               amounted to US$ 3,821.

               At period end, those holders of negotiable  obligations continued
               to  be   invited   to   exchange   their   obligations   for  the
               above-mentioned debt certificates. For those holders who have not
               adhered  to  the  agreement,   and  under  current  public  order
               regulations on this matter, Tarjeta Naranja

                                       40
<PAGE>
                         Grupo Financiero Galicia S.A.
   "Corporation which has not adhered to the Optional System for the Mandatory
                   Acquisition of Shares in a Public Offering"
           Notes to the Consolidated Financial Statements (Continued)
                  (figures stated in thousands of US dollars)

NOTE 8:        (Continued)

               S.A. considers that in all cases the criterion applicable for the
               redemption of those negotiable  obligations would be the exchange
               rate of US$1=$1,  plus CER, because even the most recently issued
               Series   involved   renewals  of  series  issued  under  Programs
               predating January 6, 2002.

               In view of Tarjeta Naranja S.A.'s  expectations for the method of
               redemption of these obligations, either by means of the adherence
               to the agreement or by redeeming them in cash,  such  obligations
               have been valued as follows: 50%, that is US$ 1,910, are expected
               to be redeemed in cash applying the US$1=$1  exchange rate,  plus
               CER, and the  remaining  50% is expected to be exchanged for debt
               securities,  so they were valued  applying the same  procedure as
               that described  above for debt  certificates,  a present value of
               US$ 1,649 being determined. If all the due and payable negotiable
               obligations  amounting  to US$ 3,821  were  valued at the free US
               dollar  exchange rate as of March 31, 2003, an additional loss of
               approximately US$ 1,252 would be generated at period end.
               The maximum risk  attaching to the  situations  described,  which
               could have an impact on the consolidated  financial statements of
               Tarjetas Regionales S.A. amounts to US$ 1,002.

               The maximum risk  attaching to the  situations  described,  which
               could  have  an  impact  on the  financial  statements  of  Grupo
               Financiero Galicia S.A. would amount to approximately US$ 2,890.

NOTE 9:        DEPOSIT INSURANCE SYSTEM

               Law 24485 and  Decree  540/95  established  the  creation  of the
               Deposit  Insurance  System  to cover  the risk  attached  to bank
               deposits,   beyond  the  system  of  privileges   and  safeguards
               envisaged in the Financial Institutions Law.
               Pursuant to  Communique  "A" 2337,  the  Argentine  Central  Bank
               established  rules for applying the deposit insurance and the way
               of settling the related contributions.

               The  National   Executive  Power  through  Decree  1127/98  dated
               September  24,  1998  extended  this  insurance  system to demand
               deposits and time deposits of up to US$ 10 denominated  either in
               pesos or in foreign currency.
               This System does not cover the deposits  made by other  financial
               institutions  (including the time deposit  certificates  acquired
               through a secondary  transaction),  the deposits  made by persons
               related to Banco de Galicia y Buenos Aires S.A.,  either directly
               or indirectly, deposits of securities,  acceptances or guarantees
               and those set up after July 1, 1995

                                       41
<PAGE>
                         Grupo Financiero Galicia S.A.
   "Corporation which has not adhered to the Optional System for the Mandatory
                   Acquisition of Shares in a Public Offering"
           Notes to the Consolidated Financial Statements (Continued)
                  (figures stated in thousands of US dollars)

NOTE 9:        (Continued)

               at an interest rate exceeding the one that the Argentine  Central
               Bank regularly  establishes  based on a daily survey conducted by
               it.
               Nor does this System  cover  deposits  whose  ownership  has been
               acquired   through   endorsement   and  placements   which  offer
               incentives in addition to the interest  rate. The System has been
               implemented  through the creation of the Deposit  Insurance Fund,
               which is managed by a company  called  Seguros de Depositos  S.A.
               (SE.DE.S.A.).  The  shareholders of SE.DE.S.A.  are the Argentine
               Central Bank and the  financial  institutions  in the  proportion
               determined  for each one by the  Argentine  Central Bank based on
               the contributions made to the said fund.
               Through  Communique "A" 3068, the Argentine  Central Bank reduced
               the normal  contribution  to the said  Fund,  which  amounted  to
               0.03%, to half, provided that the financial  institution arranges
               with  SEDESA  36-month  loans,  to be  earmarked  for the Deposit
               Insurance  Fund.  Interest on these loans has been  determined on
               the  basis of the yield  obtained  by the  mentioned  Fund on its
               placements.

               As from September  2000,  Argentine  Central Bank  Communique "A"
               3153   eliminated  the  above   mentioned  loan  and  the  normal
               contribution  of 0.015%  on items  comprised  in the  calculation
               basis remained in force.

               As from December 2001, Argentine Central Bank Communique "A" 3358
               resolved to increase the  contribution  to 0.03%. As of March 31,
               2003  the  normal  contribution  to the  Deposit  Insurance  Fund
               amounted  to US$  89,050,  of  which  US$ 856  correspond  to the
               current period.


NOTE 10:       RESTRICTIONS IMPOSED ON THE DISTRIBUTION OF PROFITS

               Argentine  Central  Bank  regulations  establish  that 20% of the
               profits shown in the Income  Statement at period end, plus (less)
               prior year adjustments must be allocated to the legal reserve.
               This  proportion  is  applicable  regardless  of the ratio of the
               legal reserve fund to the capital stock.


               Furthermore,  as a result of the facts described in Note 1 to the
               financial  statements,  through  Resolution 81 dated  February 8,
               2002,  the  Argentine  Central  Bank  established  that while the
               assistance  received  from  that  Entity  is in  force,  Banco de
               Galicia y Buenos Aires S.A. may not  distribute  dividends or any
               other return on capital in cash,  remit  profits or make payments
               for fees, interests or compensation related to results.

                                       42
<PAGE>
                         Grupo Financiero Galicia S.A.
   "Corporation which has not adhered to the Optional System for the Mandatory
                   Acquisition of Shares in a Public Offering"
           Notes to the Consolidated Financial Statements (Continued)
                  (figures stated in thousands of US dollars)

NOTE 10:       (Continued)

               Furthermore,  Argentine Central Bank Communique "A" 3574 provided
               for the  suspension  of the  distribution  of  profits  until the
               criteria for valuing the shareholders' equity of Banco de Galicia
               y Buenos Aires S.A. are defined,  which include the known effects
               of Law 25561 and supplementary provisions.

               Communique  "A" 3785 provides that financial  institutions  which
               receive in  compensation  National  Government  bonds  within the
               framework of Sections 28 and 29 of Decree 905/02, may record them
               at their technical value;  while using this procedure,  financial
               institutions  may not distribute cash  dividends,  except for the
               amount  of  profits  in  excess  of the  difference  between  the
               carrying  value and the market value of those  bonds,  net of the
               pertinent  appropriation  to  legal  reserve  and to the  reserve
               established by the bank's by-laws, and the same treatment will be
               given  to  those   institutions  which  decide  to  exchange  the
               compensating  bonds for  promissory  notes issued by the National
               Government.

NOTE 11:       NATIONAL SECURITIES COMMISSION (Comision Nacional de Valores)

               -Resolution No. 368/01
               The Bank's  equity as of March 31, 2003 exceeds that  required by
               Chapter XIX,  points 4 and 5 of CNV  Resolution No. 368/01 to act
               as over-the-counter broker.
               Furthermore,  in compliance with Section 32 of Chapter XI of that
               resolution,  as depository  of the mutual funds "FIMA  ACCIONES",
               "FIMA  P.B.  ACCIONES",  "FIMA  RENTA EN PESOS",  "FIMA  RENTA EN
               DOLARES",  "FIMA  MIX PLUS ",  "FIMA  MIX ",  "FIMA  RENTA  CORTO
               PLAZO",  "FIMA  MONEY  MARKET EN  PESOS"  "FIMA  MONEY  MARKET EN
               DOLARES" , "FIMA GLOBAL ASSETS" and "FIMA RENTA LATINOAMERICANA",
               the Bank has a total of  154,882,112  units  under  custody for a
               market value of US$ 22,255,  which is included in the "Depositors
               of Securities in Custody" account.



               At December 31, 2002, the securities  held in custody by Banco de
               Galicia y Buenos Aires S.A. totalled  155,298,672 units and their
               market value amounted to US$ 21,094.



                                       43
<PAGE>
                         Grupo Financiero Galicia S.A.
   "Corporation which has not adhered to the Optional System for the Mandatory
                   Acquisition of Shares in a Public Offering"
           Notes to the Consolidated Financial Statements (Continued)
                  (figures stated in thousands of US dollars)

 NOTE 12:      CONTRIBUTIONS  TO THE BANK EMPLOYEES'  SOCIAL SERVICES  INSTITUTE
               (the "ISSB")

               Effective  July  1,  1996,  Decree  No.  263/96  of the  National
               Executive  Power reduced to 1% and effective  July 1, 1997 Decree
               No. 915/96  eliminated the 2%  contribution  on interest and fees
               that  banks  previously  had to make  to the  ISSB,  pursuant  to
               Section 17 of Law No. 19322. Banco de Galicia y Buenos Aires S.A.
               has determined  the  aforementioned  contributions  in accordance
               with these  regulations.  The bank  employee  union (the "Banking
               Association") brought legal action calling for a stay against the
               National Executive Power - Ministry of Public Works and Services,
               with a view to having  Section 1 of Decree  263/96  declared null
               and unconstitutional, and got a favorable ruling from the Federal
               Court dealing with Administrative Litigation Matters, Panel I.

               The National  Supreme  Court of Justice  declared out of order an
               extraordinary  appeal made by the  National  Executive  Branch on
               November 4, 1997.  Therefore,  the ruling in favor of the Banking
               Association became firm.
               Although  in the  opinion of the legal  counsel of the  financial
               institutions  this  ruling  is not  opposable  against  the banks
               because they were not a party to the aforementioned legal action,
               the juridical uncertainty still persists. In April 1998, the Bank
               Employees'  Health Care System  (OSBA) made a final claim,  which
               was  refuted  from the  administrative  angle  before  OSBA,  the
               Federal Public Revenue  Authority  (AFIP) and the National Social
               Security Administration.
               Furthermore, the Banking Association brought legal action calling
               for a stay  before  the  First  Instance  No.  5  Federal  Social
               Security Court,  requesting a precautionary  measure ordering the
               OSBA not to bring  legal  actions  for tax  collection  until the
               definitive  judgment is issued about whether this supposed  claim
               is applicable.

               This  latter  measure is firm.  Concerning  the  matters at issue
               stated in the claim for a temporary restraining order filed, such
               claim has been  sustained  and it was resolved that OSBA does not
               have any legal authority to make  verifications,  assess possible
               debts or bring legal actions for tax  collection,  on the grounds
               of Section 17, subsection f) of Law 19322.



                                       44
<PAGE>
                         Grupo Financiero Galicia S.A.
   "Corporation which has not adhered to the Optional System for the Mandatory
                   Acquisition of Shares in a Public Offering"
           Notes to the Consolidated Financial Statements (Continued)
                  (figures stated in thousands of US dollars)

NOTE 12:       (Continued)

               This  resolution  was confirmed by the National  Social  Security
               Court (Panel II). In this connection, OSBA filed an extraordinary
               appeal with the  National  Supreme  Court of  Justice,  which was
               dismissed by the Court on November 21, 2000.

               Furthermore,   OSBA  has  brought  a  legal  action  against  all
               institutions  in the financial  system,  before the Federal Court
               dealing with Administrative Litigation Matters, and the complaint
               has  already  been  answered.  The  trial  of the  case  has been
               ordered.
               In addition,  the AFIP issued Order No. 6/99 ratifying Resolution
               No. 9/99,  which holds that OSBA is a legal entity other than the
               ISSB,  and therefore not having any legal  authority to claim the
               contribution set by Section 17, subsection f) of Law 19322.

NOTE 13:       REGULATIONS ON BANK CURRENT ACCOUNTS

               On March 24, 2001, the  Competitiveness Law No. 25413 was enacted
               and  promulgated.  This  norm  repeals  the  system  of fines and
               penalties for current account holders and financial  institutions
               established by Laws No. 24452 and 24760.
               In the case of the latter,  effective  January 13, 1997,  the law
               that was  repealed  provided  a system  of  fines  for  financial
               institutions  which would have kept  current  accounts  open when
               they  should  have been  closed,  or would  have  opened  current
               accounts to current account holders who had been disqualified.
               In view of the  above,  on April  16,  1999,  Section 3 of Decree
               347/99 of the National Executive Power established that:
               "In the case of the fines  resulting  from  applying  Section 62,
               last paragraph ..., as amended by Law No. 24,760,  accumulated by
               each financial  institution at the effective date of this decree,
               the Argentine  Central Bank is empowered to set the amount of the
               fines  between a minimum of five  thousand  dollars (US$ 5) and a
               maximum of six hundred seventy one thousand dollars (US$ 671) for
               each institution,  based on the number of non-compliances by each
               one".
               In line with Argentine  Central Bank Communique "A" 2909 Banco de
               Galicia y Buenos Aires S.A.  has  reported to the  aforementioned
               body the  current  accounts  kept open when they should have been
               closed   and   paid   the   corresponding   fines,   taking   the
               aforementioned  caps into consideration.  Subsequently,  Banco de
               Galicia y Buenos  Aires S.A.  received a  communication  from the
               Argentine Central Bank addressed to

                                       45
<PAGE>
                         Grupo Financiero Galicia S.A.
   "Corporation which has not adhered to the Optional System for the Mandatory
                   Acquisition of Shares in a Public Offering"
           Notes to the Consolidated Financial Statements (Continued)
                  (figures stated in thousands of US dollars)

NOTE 13:       (Continued)

               all  financial  institutions,   calling  upon  them  to  pay  the
               corresponding amount, pursuant to Section 62 of the Law Governing
               Checks.  In view of this  Banco de  Galicia y Buenos  Aires  S.A.
               filed a claim for a temporary  restraining order with the Federal
               Court of First Instance  dealing with  Administrative  Litigation
               Matters  No. 4,  Clerk's  Office  No.  7, in the event  that said
               communication might prove detrimental to its vested rights.
               The temporary  restraining  order has been dismissed by the lower
               court on the  grounds  that Decree No.  347/99 had been  declared
               unconstitutional  in the  ordinary  proceedings  initiated by the
               Ombudsman  requesting  that such decree be declared null and void
               because it allegedly violated constitutional rights.
               The decision dismissing the temporary  restraining order has been
               appealed by the Bank.
               If this decision were to be confirmed by the appellate court, and
               if  the  judgment  rendered  in  the  lawsuit  prosecuted  by the
               Ombudsman  were to become final,  the adverse  effect on the Bank
               would be that the  Argentine  Central Bank might claim from Banco
               de Galicia y Buenos Aires S.A. payment of the difference  between
               the amount  actually  paid by it under the  guidelines  of Decree
               347/99 and the amount that it should have paid as a result of the
               application of Section 62 of Law 24452, as amended by Law 24760.

NOTE 14:       SETTING UP OF THE "GALTRUST I" INDIVIDUAL FINANCIAL TRUST

               At the meeting held on March 15, 2000,  the Board of Directors of
               Banco de Galicia y Buenos Aires S.A.  approved Banco de Galicia y
               Buenos  Aires S.A.'s  participation  as  originator,  trustor and
               manager in a global  program for setting up financial  trusts for
               up to US$ 1,000,000. The creation of this program was approved by
               the National  Securities  Commission through resolution No. 13334
               dated April 6, 2000.

               The  trustee  of those  trusts  will be First  Trust of New York,
               National  Association,  through its permanent  representation  in
               Argentina.
               Under this global program,  on October 20, 2000, Banco de Galicia
               y Buenos  Aires S.A.  transferred  the trust  ownership  of loans
               amounting  to  US$  490,224   granted  to   Argentine   Provinces
               collateralized by the federal tax sharing  corresponding to those
               Provinces, and reserve investments for US$ 7,761, to the GalTrust
               I Financial Trust.

               As a counterpart,  Banco de Galicia y Buenos Aires S.A.  received
               Class A Debt Securities for a face value of US$ 100,000,  Class B
               Debt Securities

                                       46
<PAGE>
                         Grupo Financiero Galicia S.A.
   "Corporation which has not adhered to the Optional System for the Mandatory
                   Acquisition of Shares in a Public Offering"
           Notes to the Consolidated Financial Statements (Continued)
                  (figures stated in thousands of US dollars)


NOTE 14:       (Continued)

               for a face value of US$ 200,000 and Certificates of Participation
               for a face value of US$ 200,000.

               As of March 31, 2003,  Banco de Galicia y Buenos Aires S.A.  held
               debt  securities  and   certificates  of   participation  in  its
               portfolio for US$ 217,087.


NOTE 15:       SETTING  UP OF THE  "GALTRUST  II,  III,  IV  and  V"  INDIVIDUAL
               FINANCIAL TRUSTS

               At the meeting  held on December 6, 2001,  the Board of Directors
               of Banco de Galicia y Buenos Aires S.A.  approved the creation of
               the  Universal  Program for the  Securitization  of Loans for the
               issue of debt securities and/or  certificates of participation in
               Galtrust  Financial  Trusts.  This  program  was  approved by the
               National Securities  Commission  resolution No. 13334 dated April
               6, 2000, for a face value of up to US$ 1,000,000 (the  "Program")
               and   authorized   Banco  de  Galicia  y  Buenos   Aires   S.A.'s
               participation as originator, trustor and manager of that program.


               The trustee of the those  trusts will be First Trust of New York,
               National  Association,  through its permanent  representation  in
               Argentina
               Four  financial  trusts,  Galtrust  II,  III, IV and V - Mortgage
               bills,  were  set  up  under  the  above-mentioned  program,  and
               Certificates of Participation and Debt Securities were issued.
               Banco de  Galicia  y Buenos  Aires  S.A.  subscribed  100% of the
               certificates  of  participation  and the Class A and Class B Debt
               Securities  were  subscribed  by the New  York  Branch,  Banco de
               Galicia  Uruguay S.A. and  Aseguradora  de Personas  Galicia S.A.
               (formerly Hartford Seguros de Vida S.A.)
               On December 26, 2002 the  Galtrust  III and IV  financial  trusts
               were terminated.
               As of March 31,  2003,  Banco de Galicia y Buenos  Aires S.A. and
               Banco de Galicia  Uruguay S.A. held in their  portfolio US$ 4,777
               and US$ 6,604, respectively.



                                       47
<PAGE>
                         Grupo Financiero Galicia S.A.
   "Corporation which has not adhered to the Optional System for the Mandatory
                   Acquisition of Shares in a Public Offering"
           Notes to the Consolidated Financial Statements (Continued)
                  (figures stated in thousands of US dollars)

NOTE 16:       GALICIA 2004 AND 2005 TRUSTS

               On November 19, 2001, the beneficiaries of the Galicia 2004 Trust
               were designated, as stipulated in the "Framework Trust Agreement"
               signed on November 4, 1999, to implement an incentive  program in
               favor of certain  executives  of Banco de Galicia y Buenos  Aires
               S.A.. The total amount of US$ 4,000 transferred to the trustee by
               the  Galicia  2004  Trust was used for the  purchase  of  855,442
               shares and 189,116 ADS in Grupo Financiero Galicia S.A..
               Specific  beneficiaries were awarded 855,442 shares and 28,046.60
               ADS,  and 3,400 ADS that were not  awarded  were  returned to the
               trustor.  The balance of  157,669.40  ADS formed the Galicia 2005
               Trust.

NOTE 17:       CHANGES IN SIGNIFICANT ASSETS AND LIABILITIES

               The  breakdown  of the most  significant  assets and  liabilities
               shown in these consolidated  financial  statements,  presented in
               comparative format with those of the previous year ended December
               31,  2002,  in order to disclose  the changes in those assets and
               liabilities during the current period is as follows:



                                       48
<PAGE>
                         Grupo Financiero Galicia S.A.
   "Corporation which has not adhered to the Optional System for the Mandatory
                   Acquisition of Shares in a Public Offering"
           Notes to the Consolidated Financial Statements (Continued)
                  (figures stated in thousands of US dollars)

NOTE 17:       CHANGES IN SIGNIFICANT ASSETS AND LIABILITIES (Contd.)

<TABLE>
<CAPTION>
                                                                                    3.31.03        12.31.02
                                                                           ----------------------------------
<S>                                                                        <C>                 <C>
               ASSETS
               LOANS                                                              3,166,494       3,216,256
                                                                           ----------------------------------
               -To the non-financial public sector                                2,549,389       2,580,544
               -To the financial sector                                              52,807          45,216
               -To the non-financial private sector and residents abroad             996,002       1,070,155
                -Overdraft facilities                                                68,058          71,676
                -Notes                                                              278,771         311,032
                -Mortgage loans                                                     237,167         256,108
                -Pledge loans                                                        16,684          20,254
                -Consumer loans                                                      28,954          40,263
                -Credit card loans                                                  193,503         196,019
                -Other                                                               54,321          57,744
                -Accrued interest and quotation differences receivable              122,784         121,429
                -Documented interest                                                (3,548)         (3,635)
                -Unallocated collections                                              (692)           (735)
               -Allowances for loan losses                                        (431,704)       (479,659)
                                                                           ----------------------------------
               OTHER RECEIVABLES RESULTING FROM FINANCIAL BROKERAGE               2,706,582       3,101,531
                                                                           ----------------------------------
               -Argentine Central Bank                                               22,455          18,761
               -Amounts receivable for spot and forward sales to be
               settled                                                                   47             645
               - Securities receivable under spot and forward purchases
               to be settled                                                             46             227
               -Unlisted negotiable obligations                                      49,639          55,166
               -Other not included in the debtor classification
               regulations                                                        2,487,973       2,798,170
               -Other included in the debtor classification regulations             118,138         235,219
               -Accrued interest receivable not included in the debtor
               classification regulations                                            36,547           2,300
               - Accrued interest receivable included in the debtor
               classification regulations                                             2,968             340
               -Allowances                                                         (11,231)         (9,297)
</TABLE>



                                       49
<PAGE>
                         Grupo Financiero Galicia S.A.
   "Corporation which has not adhered to the Optional System for the Mandatory
                   Acquisition of Shares in a Public Offering"
           Notes to the Consolidated Financial Statements (Continued)
                  (figures stated in thousands of US dollars)

NOTE 17:       (Continued)

<TABLE>
<CAPTION>
                                                                                  3.31.03          12.31.02
                                                                            -----------------------------------
<S>                                                                         <C>                <C>
               LIABILITIES
                DEPOSITS                                                         1,599,524         1,588,222
                                                                            -----------------------------------
                -Non-financial public sector                                         1,020             2,626
                -Financial sector                                                      972               989
                -Non-financial private sector and residents abroad               1,597,532         1,584,607
                 -Current accounts                                                 247,727           247,836
                 -Savings accounts                                                 127,461           115,892
                 -Time deposits                                                    702,131           734,518
                 -Other                                                            380,996           350,580
                 -Accrued interest and quotation differences payable               139,217           135,781
                                                                            -----------------------------------
               OTHER LIABILITIES RESULTING FROM FINANCIAL BROKERAGE              4,737,751         4,975,287
                                                                            -----------------------------------
                -Argentine Central Bank                                          2,718,260         2,720,156
                 -Rediscounts to cover lack of liquidity                         1,867,291         1,828,819
                 -Other                                                            850,969           891,337
                -Banks and international entities                                  933,367         1,068,694
                -Unsubordinated negotiable obligations                             551,180           635,958
                -Amounts payable for spot and forward purchases to be
                settled                                                                 45               716
                -Securities to be delivered under spot and forward sales
                to be settled                                                       36,096            41,789
                -Loans from domestic financial institutions                         62,657            67,541
                -Other                                                             315,651           347,000
                -Accrued interest and quotation differences payable                120,495            93,433
</TABLE>

NOTE 18:       SITUATION OF CERTAIN  COMPANIES  CONSOLIDATED  WITH BANCO DE
               GALICIA Y BUENOS AIRES S.A.
               As of March 31,  2003,  Tarjeta  Comfiar  S.A.,  Tarjetas del Mar
               S.A., Tarjeta Naranja S.A. and Tarjetas  Regionales S.A. reported
               deficits in their  equity,  and this  situation is subject to the
               provisions of Section 94, subsection 5) of the Corporations Law.
               Accumulated  losses are in excess of 50% of the corporate capital
               and irrevocable  capital  contributions made by the shareholders,
               according to the  computation  established by Section 206 of that
               Law.  It should be noted  that  Decree  1269/02  suspended  until
               December 10, 2003 the application of Section 94, subsection 5) of
               Law 19550,  which  establishes  that  companies must be dissolved
               when their losses exceed their  corporate  capital and of Section
               206, which  establishes  mandatory  capital reduction when losses
               are in excess of reserves and 50% of capital.



                                       50
<PAGE>
                         Grupo Financiero Galicia S.A.
   "Corporation which has not adhered to the Optional System for the Mandatory
                   Acquisition of Shares in a Public Offering"
           Notes to the Consolidated Financial Statements (Continued)
                  (figures stated in thousands of US dollars)

NOTE 19:       GALICIA MORTGAGE LOANS AND SECURED LOANS TRUSTS

               As part of the  implementation of the Galicia  Capitalization and
               Liquidity  Plan,   during  May  2002,   "Galicia  Mortgage  Loans
               Financial  Trust" was created,  by which  mortgage  loans for US$
               104,958  were  transferred,  receiving  in exchange US$ 78,718 in
               cash  and  certificates  of  participation  for US$  26,240.  The
               trustee is ABN AMRO Bank Argentine Branch,  with various domestic
               financial institutions acting as subscribers.
               The Secured  Loans  Trust has been  created and the parties to it
               are Banco de la  Provincia  de Buenos  Aires as  beneficiary  and
               BAPRO  Mandatos y Negocios  S.A.,  as trustee.  Under this Trust,
               secured loans for US$ 36,242 were  transferred  and US$ 27,181 in
               cash  and  certificates  of  participation  for  US$  9,060  were
               received in exchange.
               Banco de Galicia y Buenos  Aires S.A.  acts as  administrator  in
               both cases.

               As  of  March  31,  2003,   the  amounts  of  the   participation
               certificates was US$ 32,088 and US$ 12,284, respectively.

NOTE 20:       SEGMENT INFORMATION

               Below is a detail of the  accounting  information as of March 31,
               2003, classified according to the related business segment:

               Primary segment: Business Segment.

<TABLE>
<CAPTION>
                                                      Financial              Services            Total
                                                     brokerage
<S>                                                 <C>                     <C>             <C>
               Income                                  224,049                32,280            256,329
               Expenses                              (317,505)               (5,297)          (322,802)
                                                  -------------------------------------------------------
               Result                                 (93,456)                26,983           (66,473)
                                                  =======================================================
</TABLE>

               Secondary segment: Geographic area segment.

<TABLE>
<CAPTION>
                                                        City of Buenos      Rest of country        Total
                                                      Aires and Greater
                                                         Buenos Aires
<S>                                                   <C>                   <C>                 <C>
               Financial brokerage
               Income                                          213,151            10,898            224,049
               Expenses                                      (302,061)          (15,444)          (317,505)
                                                      -------------------------------------------------------
               Result                                         (88,910)           (4,546)           (93,456)
                                                      =======================================================

               Services
               Income                                           30,711             1,569             32,280
               Expenses                                        (5,040)             (257)            (5,297)
                                                      -------------------------------------------------------
               Result                                           25,671             1,312             26,983
                                                      =======================================================
</TABLE>



                                       51

<PAGE>
                         Grupo Financiero Galicia S.A.
   "Corporation which has not adhered to the Optional System for the Mandatory
                   Acquisition of Shares in a Public Offering"
           Notes to the Consolidated Financial Statements (Continued)
                  (figures stated in thousands of US dollars)

NOTE 20:       (Continued)


               The accounting measurement of assets and liabilities allocated to
               the above-mentioned segments is as follows:

<TABLE>
<CAPTION>
                                                                                 Total
<S>                                                                        <C>
               Assets
               Government and corporate securities                               551,552
               Loans                                                           3,166,494
               Other receivables resulting from financial brokerage            2,706,582
               Leased assets                                                       6,990

               Liabilities
               Deposits                                                        1,599,524
               Other liabilities resulting from financial brokerage            4,737,751
</TABLE>



                                       52
<PAGE>
                         Grupo Financiero Galicia S.A.
   "Corporation which has not adhered to the Optional System for the Mandatory
                   Acquisition of Shares in a Public Offering"
   Statement of Financial Condition as of March 31, 2003 and December 31, 2002
                  (figures stated in thousands of US dollars)
                                    (Note 2)

<TABLE>
<CAPTION>
                                                      3.31.03          12.31.02
                                                  -----------------------------------
<S>                                                 <C>               <C>
ASSETS
CURRENT ASSETS
Cash and due from banks (Notes 3 and 12 and
Schedule G)                                                  336               434
Investments  (Notes 10 and 12 and Schedules C and
G)                                                        10,919            12,233
Other receivables (Notes 4 and 10 and Schedule G)            309                63
                                                  -----------------------------------
Total Current Assets                                      11,564            12,730
                                                  -----------------------------------

NON-CURRENT ASSETS
Other receivables (Notes 4 and 10)                            28                 2
Investments  (Notes  10, 11 and 12 and  Schedules
C, E and G)                                              537,134           550,426

Fixed assets  (Schedule A)                                 1,219             1,237

Intangible assets (Schedules B and E)                      3,089             4,600
                                                  -----------------------------------
Total Non-current Assets                                 541,470           556,265
                                                  -----------------------------------
Total Assets                                             553,034           568,995
                                                  ===================================
</TABLE>

<TABLE>
<CAPTION>
                                                      3.31.03          12.31.02
                                                  -----------------------------------
<S>                                                  <C>              <C>
LIABILITIES
CURRENT LIABILITIES

Salaries and social  security  liabilities
(Notes 5 and 10)                                            32                46
Tax liabilities (Notes 6 and 10)                           456               439
Other  liabilities  (Notes  7,  10  and 12 and
Schedule  G)                                               312               465
                                                  -----------------------------------
Total Current Liabilities                                  800               950
                                                  -----------------------------------

NON-CURRENT LIABILITIES
Tax liabilities (Notes 6, 10 and 15)                    15,927            18,166
Other  liabilities (Notes 7 and 10 and
Schedule E)                                                  1                 1
                                                  -----------------------------------
Total Non-current Liabilities                           15,928            18,167
                                                  -----------------------------------
Total Liabilities                                       16,728            19,117
                                                  -----------------------------------
SHAREHOLDERS' EQUITY

(per related statement)                                536,306           549,878
                                                  -----------------------------------
Total Liabilities and Shareholders' Equity             553,034           568,995
                                                  ===================================
</TABLE>

The accompanying Notes 1 to 17 and Schedules A, B, C, E, G and H are an integral
part of these financial statements.

                                       53
<PAGE>
                          Grupo Financiero Galicia S.A.
   "Corporation which has not adhered to the Optional System for the Mandatory
                   Acquisition of Shares in a Public Offering"
                                Income Statement
            for the period of three months commenced January 1, 2003
                           and ended March 31, 2003.
        In comparative format with the same period of the previous year
                   (figures stated in thousands of US dollars)
                                    (Note 2)

<TABLE>
<CAPTION>
                                                                3.31.03          3.31.02
                                                            ----------------------------------
<S>                                                               <C>              <C>
Administrative expenses (Note 12 and Schedule H)                     (672)           (1,223)
Loss on investments in related entities                           (14,504)         (204,771)
Financial and holding loss (Notes 9 and 12)
- Generated by assets                                              (6,748)          (14,017)
- Generated by liabilities                                             194              (32)
Other income and expenses, net (Schedule E)                          2,072                35
Loss before income tax                                            (19,658)         (220,008)
Income tax                                                             (6)                 -
                                                            ----------------------------------
Loss for the period                                               (19,664)         (220,008)
                                                            ==================================
</TABLE>
The accompanying Notes 1 to 17 and Schedules A, B, C, E, G and H are an integral
part of these financial statements.



                                       55

<PAGE>

                         Grupo Financiero Galicia S.A.
   "Corporation which has not adhered to the Optional System for the Mandatory
                   Acquisition of Shares in a Public Offering"
                  Statement of Changes in Shareholders' Equity
              For the period of three months commenced January 1,2003
                           and ended March 31, 2003.
        In comparative format with the same period of the previous year
                  (figures stated in thousands of US dollars)
                                    (Note 2)

<TABLE>
<CAPTION>
                                                           Shareholders' contributions (Note 8)
                                            --------------------------------------------------------------------
                                                                              Non-capitalized
                     Item                    Subscribed     Capital           contributions
                                            and paid-up    adjustment   Issuance      Irrevocable      Total
                                              capital                   premiums     contributions
--------------------------------------      ------------- ------------- ---------------------------- -----------
<S>                                         <C>           <C>          <C>                 <C>     <C>
Balances at beginning of year               366,580       434,184      58,093                -     858,857
Adjustment to balances at beginning
of year                                           -         6,981         506                -       7,487
                                            ------------- ------------- ----------- ---------------- -----------

balances at beginning of year, adjusted     366,580       441,165      58,599                      866,344
Adjustments to historical balances
at beginning of year, modified                    -             -           -                -           -
                                            ------------- ------------- ----------- ---------------- -----------
Modified and adjusted balances at
beginning of year.                          366,580       441,165      58,599                -     866,344
Loss for the period                               -             -           -                -           -
--------------------------------------      ------------- ------------- ----------- ---------------- -----------

Total                                       366,580       441,165      58,599                -     866,344
======================================      ============= ============= =========== ================ ===========
</TABLE>

<TABLE>
<CAPTION>
                                                  Retained earnings (Note 13)
                                  -------------------------------------------------------------
       Item                               Reserved profits              Total    Unappropriated     Total         Total
                                  ------------------------------------              retained     shareholders'  shareholders'
                                   Legal      Discretionary   Other                 earnings     equity as of   equity as of
                                   Reserve      reserve      reserves                              3.31.03         3.31.03
--------------------------------- ----------- ------------- ---------- --------- --------------- ------------ ---------------
<S>                                    <C>         <C>             <C>  <C>           <C>            <C>         <C>
                                       9,811       163,787          -   173,598       (487,329)      545,126       773,828
Balances at beginning of year
Adjustment to balances at
beginning of year                         87         1,428          -     1,515         (4,250)        4,752             -
                                  ----------- ------------- ---------- --------- --------------- ------------ -------------

balances at beginning of year,
adjusted                               9,898       165,215          -   175,113       (491,579)      549,878       773,828
Adjustments to historical
balances at beginning of year,
modified                                   -             -          -         -           6,092        6,092       265,303
                                  ----------- ------------- ---------- --------- --------------- ------------ -------------
Modified and adjusted balances
at beginning of year.                  9,898       165,215          -   175,113       (485,487)      555,970     1,039,131
Loss for the period                        -             -          -         -        (19,664)      (19,664)     (220,008)
--------------------------------- ----------- ------------- ---------- --------- --------------- ------------ -------------

Total                                  9,898       165,215          -   175,113       (505,151)     (536,306)      819,123
================================= =========== ============= ========== ========= =============== ============ =============
</TABLE>
The accompanying Notes 1 to 17 and Schedules A, B, C, E, G and H are an integral
part of these financial statements.


                                       55

<PAGE>

                         Grupo Financiero Galicia S.A.
   "Corporation which has not adhered to the Optional System for the Mandatory
                   Acquisition of Shares in a Public Offering"
                            Statement of Cash Flows
            For the period of three months commenced January 1, 2003
                           and ended March 31, 2003.
        In comparative format with the same period of the previous year
                  (figures stated in thousands of US dollars)
                                    (Note 2)

<TABLE>
<CAPTION>
                                                                         3.31.03            3.31.02
-----------------------------------------------------------------------------------------------------
<S>                                                                           <C>               <C>
CHANGES IN CASH
Cash at beginning of year                                                      434               120
Cash at end of period                                                          336               609
                                                                -------------------------------------
Net (decrease)/ Increase in cash                                               (98)              489
                                                                =====================================

REASONS FOR CHANGES IN CASH
Collections for sales of goods and services                                    110                 -
Payments to suppliers of goods and services                                  (402)             (527)
Payments to the staff and social security contributions                       (59)             (108)
Payment of other taxes                                                        (40)              (48)
Other operating collections                                                    919             1,398
                                                                -------------------------------------
Net cash flow provided by operating activities                                 528               715
                                                                -------------------------------------

Investment activities                                                                             49
Interest collected                                                             276
Irrevocable contributions                                                     (636)             (275)
Financing granted                                                             (266)                 -
                                                                -------------------------------------
Net cash flow used in investment activities                                   (626)             (226)
                                                                -------------------------------------

Net (decrease) / increase in cash                                              (98)              489
=====================================================================================================
</TABLE>
The accompanying Notes 1 to 17 and Schedules A, B, C, E, G and H are an integral
part of these financial statements.



                                       56

<PAGE>

                         Grupo Financiero Galicia S.A.
   "Corporation which has not adhered to the Optional System for the Mandatory
                   Acquisition of Shares in a Public Offering"
                 Notes to the Financial Statements (Continued)
                  (figures stated in thousands of US dollars)

NOTE1:    ARGENTINE  ECONOMIC  SITUATION  AND ITS  IMPACT  ON  GRUPO  FINANCIERO
          GALICIA S.A. AND BANCO DE GALICIA Y BUENOS AIRES S.A.

          Argentina  is  immersed  in a critical  economic  situation,  the main
          features of which are a major external debt burden, a financial system
          in crisis,  country risk  indicators  far above normal  average and an
          economic  recession that has already lasted more than five years. This
          situation  has led to a  significant  decrease in the demand for goods
          and  services  and a large  rise in the  level  of  unemployment.  The
          Government's ability to meet its obligations has been impaired,  which
          led to it  declaring  default  on the  external  debt  service  at the
          beginning of 2002. Furthermore,  at the end of April 2003 presidential
          elections were held and the new president took office on May 25, 2003.

          To confront the crisis  Argentina is enduring,  in December  2001, the
          Government  issued  measures to  restrict  the free  availability  and
          circulation  of cash and the  transfer  of  foreign  currency  abroad.
          Subsequently, as from January 2002, laws, decrees and regulations were
          enacted that  involved  profound  changes to the  prevailing  economic
          model. Among the measures adopted was the establishment of an exchange
          rate float that led to a significant devaluation of the Argentine peso
          during the first months of 2002; the conversion  into pesos of certain
          assets and  liabilities  in foreign  currency  held in Argentina and a
          consequent increase in local prices.


          Listed below are some of the measures  adopted by the Government  that
          are in force at the date of filing these financial statements and have
          been  affecting  the economic and  financial  situation of the Company
          and/or its controlled entities:


          Exchange system

          On  February  8, 2002,  Decree No. 260  (Exchange  System)  was issued
          establishing a single free exchange market system  effective  February
          11, 2002,  through  which all  transactions  involving the exchange of
          currency  are to be traded at the exchange  rate to be freely  agreed,
          according to the requirements to be laid down by the Argentine Central
          Bank. Certain transfers abroad of a financial nature require the prior
          approval  of the  Central  Bank.
          Effective September 3, 2002, certain payments related to the servicing
          of principal and interest on  obligations  with foreign  entities have
          been excluded from the requirement for prior approval of the Argentine
          Central Bank,

                                       57

<PAGE>

                         Grupo Financiero Galicia S.A.
   "Corporation which has not adhered to the Optional System for the Mandatory
                   Acquisition of Shares in a Public Offering"
                 Notes to the Financial Statements (Continued)
                  (figures stated in thousands of US dollars)

NOTE 1:   (Continued)

          provided that those obligations are debts refinanced for average terms
          of not less than four years.

          Furthermore,  on January 27, 2003, the Argentine Central Bank released
          Communique "A" 3872 and  supplementary  rules  authorizing for 60 days
          the purchase of foreign  currency for amounts in excess of the current
          cap of US$ 150 , provided it is used to settle  debts in arrears as of
          February 10, 2002 and for a maximum amount equivalent to 5% of the due
          and payable  foreign  debt.  The foreign  currency  acquired  for such
          purpose is to be deposited in trust and may only be released to settle
          those  debts or to be traded  on the  exchange  market  with the prior
          approval of the Argentine Central Bank.
          Through  Communique  "A" 3944 dated May 6, 2003,  new measures for the
          relaxation  of exchange  controls  were  implemented.  These  measures
          include the repeal of the prior Central Bank authorization requirement
          for the  settlement of financial  debts assumed by the private  sector
          abroad,  the  authorization  for companies  that make exports for more
          than US$ 1 million to sell foreign  currency on the  exchange  market,
          having  previously been required to sell that foreign  currency to the
          Argentine Central Bank, and the taking of the monthly foreign currency
          purchase quota to US$ 500. Nevertheless,  the obligation to obtain the
          prior authorization of the Central Bank for the settlement of debts of
          financial  institutions  that have  adhered  to the  proposal  for the
          repayment of credit  assistance  granted by the Argentine Central Bank
          within  the  terms of  Communique  "A" 3941 has been  maintained  (see
          section  "Treatment of extraordinary  assistance  granted to financial
          institutions by the Argentine Central Bank").

          Loans to the  non-financial  private sector and assets under financial
          leases

          a)  Pursuant  to the  above  mentioned  Decree  N(0)  214/02,  as from
          February  3, 2002,  all debts  denominated  in US dollars or any other
          currency with the financial system,  except as mentioned in subsection
          b) below,  whatever  their amount and nature,  will be converted  into
          pesos at the exchange rate of $ 1 per US$ 1 or its equivalent in other
          currency.   Furthermore,   as  from   February  3,  2002  a  reference
          stabilization index (CER) and a maximum interest rate to be determined
          by  the   Argentine   Central   Bank   will  be   applied   to   these
          debts.
          Subsequently, Decrees 762/02 and 1242/02 excluded from the application
          of the CER  those  loans  secured  by  mortgages  on the  only  family
          dwelling of debtors,  regardless of their amounts,  consumer loans for
          up to twelve thousand pesos and pledge consumer loans for up to thirty
          thousand pesos.

                                       58

<PAGE>
                         Grupo Financiero Galicia S.A.
   "Corporation which has not adhered to the Optional System for the Mandatory
                   Acquisition of Shares in a Public Offering"
                 Notes to the Financial Statements (Continued)
                  (figures stated in thousands of US dollars)

NOTE 1:   (Continued)


          Those loans will be  adjusted  as from  October 1, 2002 by applying an
          adjustment  salary  variation index (CVS),  maintaining the conditions
          prevailing at that date.

          Law 25642 of September 11, 2002 postponed until September 30, 2002 the
          application  of the CER to all  obligations  to give  sums of money of
          less than four  hundred  thousand  pesos.  In the case of  debtors  of
          financial  institutions,  this amount was  considered  on the basis of
          indebtedness in financial system as a whole.
          On January  9,  2003,  Law 25713 was  promulgated,  which  establishes
          modifications to the application of the CER and CVS adjusting  indexes
          to credit  operations.  On that date,  the National  Executive  Branch
          issued Decree 44/03  leaving  without  effect the  exemption  from CER
          established  by that law for  borrowers who have a  consolidated  debt
          balance  of less  than US$ 34 in the  financial  system.  The  various
          universes  subject to each  adjusting  index  after the  modifications
          introduced to legislation would be as follows:
          Effective October 1, 2002 CVS shall be applied to:

          -Mortgage loans secured by family dwellings  originally  agreed for up
          to US$ 250,  while those loans  exceeding this amount will be adjusted
          applying  the  CER.
          -Consumer loans originally agreed for up to US$ 12.
          -Pledge consumer loans originally agreed for up to US$ 30.
          CER shall be applied to:
          Loans of whatever  nature which do not meet the  conditions  mentioned
          above.  As established by the norms  published on January 9, 2003, all
          exceptions  have been  eliminated,  the  application  of the adjusting
          indexes to all  operations  subject to them being  established as from
          February 3, 2002.
          This new  legislation  must be  regulated  by the  National  Executive
          Branch and the Argentine Central Bank.
          The  amounts  collected  as a result of the  application  of  previous
          regulations are to be reimbursed to customers, if necessary.

          Banco de Galicia y Buenos  Aires S.A.  has reserved its right to claim
          compensation in due course for the negative  effects on its assets and
          liabilities  derived  from the unequal  application  of the CER to its
          deposits and loans. In this  connection,  the amount of US$ 39,675 for
          the  difference  arising from applying the CER to the loans subject to
          adjustment by applying the CVS has been recorded in Other  Receivables
          resulting from Financial Brokerage.

                                       59

<PAGE>

                         Grupo Financiero Galicia S.A.
   "Corporation which has not adhered to the Optional System for the Mandatory
                   Acquisition of Shares in a Public Offering"
                 Notes to the Financial Statements (Continued)
                  (figures stated in thousands of US dollars)

NOTE 1:   (Continued)

          b) As established by Decree 410/02 issued by the Argentine Government,
          loans  related  to foreign  trade  transactions  granted by  financial
          institutions,  credit  card  balances  for  consumption  made  outside
          Argentina  and  contracts  governed by foreign law are not included in
          the conversion  into pesos at the rate of $ 1 per US$ 1 established by
          Section 1 of the mentioned Decree 214/02.
          As a result of the measures  adopted by the Argentine  Government  and
          the crisis  affecting  Argentina,  Banco de Galicia y Buenos  Aires is
          carrying  out  a  restructuring   of  its  commercial  loan  portfolio
          according to the new repayment  potential of customers  which,  at the
          date of these financial statements, had not been concluded.


          Loans and obligations of the financial sector

          As established by Decree 410/02,  interbank loans in foreign  currency
          in force at February 3, 2002 will be converted into pesos at a rate of
          $ 1.40  per US$ 1 or its  equivalent  in other  currencies,  or at the
          single and free market  exchange  rate, as determined by the Argentine
          Central Bank according to the type of operations.

          Deferral of the  deduction of the exchange  difference  for income tax
          purposes

          Exchange  losses caused by devaluation on foreign  currency assets and
          liabilities  existing at the date of enactment of the public emergency
          Law 25561 (January 6, 2002) are only deductible from income tax in the
          proportion  of 20% per annum in each of the first  five  fiscal  years
          ending after the effective date of the law.

          Deposits and obligations of the public and private sectors

          a) Under the terms of Decree 214/02, as from February 3, 2002 deposits
          and  obligations  in U.S.  dollars  or  other  foreign  currencies  in
          financial  institutions were converted into pesos at the exchange rate
          of $  1.40  per  US$ 1 or  its  equivalent  in  such  other  currency.
          Furthermore,  there were  restrictions on the  availability of certain
          balances in current  accounts and savings accounts in dollars and time
          deposits in pesos or dollars,  which would be returned to their owners
          in installments and the amounts and due dates depended on the balances
          recorded.  As from  February 3, 2002 a reference  stabilization  index
          (CER) and an interest rate will be applied to

                                       60

<PAGE>

                         Grupo Financiero Galicia S.A.
   "Corporation which has not adhered to the Optional System for the Mandatory
                   Acquisition of Shares in a Public Offering"
                 Notes to the Financial Statements (Continued)
                  (figures stated in thousands of US dollars)

NOTE 1:   (Continued)


          these  rescheduled  deposits.  The CER is an index that  measures  the
          daily rate of change  derived from the monthly  change in the Consumer
          Price  Index  (CPI)  published  by  the  I.N.D.E.C.


          Pursuant to Decree 905/02,  depositors  were allowed to opt to receive
          National  Government Bonds in pesos accruing interest at a 2% rate and
          falling due in 2007 in substitution  for their  deposits,  or National
          Government Bonds in US dollars, accruing interest at Libor and falling
          due  in  2012,   if   deposits   were   originally   made  in  foreign
          currency.
          Under the  conditions of Section 4 of Decree 905/02,  depositors  were
          allowed to opt to receive in exchange for their  receivables  National
          Government Bonds in US dollars, accruing interest at Libor and falling
          due in 2005.

          Furthermore,  Decree 905/02  established  that financial  institutions
          were to  register  rescheduled  deposits  for which no option had been
          exercised in a "Notarial Record of Rescheduled Deposits", in charge of
          Caja de Valores S.A. The rescheduled  deposits included in that Record
          (CEDROS)  were  deemed to be  negotiable  securities  to that  effect,
          listed on stock  exchanges  and  could be  traded  on  self-regulating
          markets in Argentina.
          Owners of those  deposits  may apply them to the  subscription  of new
          share  issuances  and/or  listed  negotiable  obligations  and  to the
          repayment of loans at the financial institutions where those funds are
          deposited.
          On September 16, 2002, Decree 1836/02 established a second exchange of
          deposits with the financial system, by which all owners of rescheduled
          deposits, whether they have exercised the mentioned option or not, may
          opt to exchange  those  deposits for National  Government  Bonds in US
          dollars due 2013 until May 23,  2003,  as  established  by  Resolution
          743/02 and

          Communique "A" 3833 of the Argentine  Central Bank. This option may be
          exercised together with a put option to be delivered by the depository
          entity as collateral for the payment of the original  coupon  adjusted
          by applying the CER, or to transform the rescheduled balance into Time
          Deposit  Bills  in  pesos,  with a  guarantee  to be  provided  by the
          National State consisting in contributing  the difference  between the
          value of each  installment  in pesos  adjusted by applying the CER and
          the  free US  dollar  exchange  rate at the  payment  date.

          Financial  institutions may also offer National Government Bonds in US
          dollars  accruing  interest  at  Libor  and  falling  due in  2006  to
          depositors who have brought legal actions that are pending resolution.

                                       61

<PAGE>

                         Grupo Financiero Galicia S.A.
   "Corporation which has not adhered to the Optional System for the Mandatory
                   Acquisition of Shares in a Public Offering"
                 Notes to the Financial Statements (Continued)
                  (figures stated in thousands of US dollars)

NOTE 1:   (Continued)


          Financial  institutions  bound to  depositors  that opt to deliver the
          mentioned  government  securities  must transfer to the National State
          sufficient assets to pay those securities.
          Decree 1836/02 also provided that "in view of the increase  determined
          in deposits with the financial system and given the special  situation
          of small savers,  owners of rescheduled  deposits for amounts of up to
          two  thousand  dollars  (US$ 2) will be able to collect that amount in
          cash",  each  financial  institution  being  entitled to increase that
          limit to three  thousand  dollars  (US$ 3).  Banco de Galicia y Buenos
          Aires S.A. offered the latter possibility to its customers.
          On November 22,  2002,  through  Resolution  668/02,  restrictions  on
          withdrawals  of funds from demand  accounts as determined in the annex
          to Resolution 6/02 were  eliminated,  those accounts having been added
          to the free account system established by Section 26 of Decree 905/02.
          There  is  also  a  possibility  of  subscribing  National  Government
          Securities in US dollars due 2013 with CEDROS.


          On January 30, 2003 the Argentine Central Bank released Communique "A"
          3875, which established new conditions for the early  reimbursement of
          rescheduled  deposits.  Deposits may be reimbursed in advance provided
          that the financial  institution is not receiving financial  assistance
          from the Central Bank, and its liquidity  ratios are not affected,  at
          least in the short term. Financial  institutions  receiving assistance
          from the Central Bank may only agree to offer  improved terms with the
          prior  approval  of the  Superintendency  of  Financial  and  Exchange
          Institutions, provided they repay principal amounts of that assistance
          weekly,  equivalent to the amount of the  certificates  of rescheduled
          deposits  reimbursed  as a  result  of the  improvements  made  in the
          preceding  calendar  week, as established by Communique "A" 3877 dated
          February 6,  2003.
          Subsequently,  continuing with the gradual release of deposits,  under
          Decree 739/2003 dated March 28, 2003,  owners of rescheduled  deposits
          and CEDROS have been  offered the  possibility  of those  deposits and
          CEDROS   being   reimbursed   to  them   fully   or   partially.   The
          characteristics  of the  options  vary  according  to the amount to be
          released  and the  original  currency in which the deposit was agreed.
          For  deposits  not  exceeding  US$ 14  (originally  US$ 30) savers may
          request that these funds be credited to demand  accounts,  adjusted by
          applying the CER. Savers will receive National  Government Bonds in US
          Dollars due 2013 (BODEN 2013) for the difference  between the residual
          nominal value adjusted by applying the CER as of April 1, 2003 and the
          amount in pesos resulting from applying the

                                       62

<PAGE>

                         Grupo Financiero Galicia S.A.
   "Corporation which has not adhered to the Optional System for the Mandatory
                   Acquisition of Shares in a Public Offering"
                 Notes to the Financial Statements (Continued)
                  (figures stated in thousands of US dollars)

NOTE 1:   (Continued)

          reference  exchange rate established by the Argentine  Central Bank at
          that date  -$2.9792  per US dollar- to that  residual  nominal  value,
          converted to US dollars at the  exchange  rate of $1.40 per US dollar.
          The amount of the bond to be  delivered  will arise from  applying the
          $2.9792  exchange  rate to the  difference  in pesos  between  the two
          amounts and subsequently  dividing the value obtained by the technical
          value of the bond (100,725).

          For deposits for higher amounts,  the placing of new time deposits for
          a term of 90 or 120 days will be  offered,  according  to whether  the
          amount of the original  deposit  converted to pesos and rescheduled is
          up to or exceeds US$ 34,  respectively.  Upon  expiration of the 90 or
          120 day term, all the funds may be withdrawn.
          Reimbursement of deposits  originally  agreed in pesos will be made by
          crediting to a demand  account the amount  calculated at the technical
          value at the payment  date.  The term set for  exercising  the options
          mentioned above will expire on May 23, 2003.
          As of March  31,  2003,  rescheduled  deposits  (CEDROS)  amounted  to
          approximately US$ 269,617,  while rescheduled  deposits  exchanged for
          National  Government Bonds and not delivered to customers  amounted to
          US$ 26,549 at that date, without including interest and/or adjustments
          by applying the CER.
          b) Decree  410/02  provides  that  deposits  made by foreign  banks or
          financial  institutions with domestic financial  institutions will not
          be converted  into pesos at the $1=US$1  exchange rate, as established
          by Section 1 of Decree  214/02,  provided  they have been  transformed
          into lines of credit that are  effectively  maintained and used for at
          least  four  years,   in  conformity   with  Argentine   Central  Bank
          regulations. The conversion into pesos also excluded those obligations
          of the  public  and  private  sectors to give sums of money in foreign
          currency which are governed by foreign laws.

          Public debt

          Decree 471/02 dated March 8, 2002  established that the obligations of
          the National,  Provincial and Municipal Public Sectors  outstanding as
          of February 3, 2002  denominated in US dollars or any other  currency,
          governed only by the Argentine law, were converted at an exchange rate
          of $1.40 per US dollar or its equivalent in other foreign currency and
          adjusted applying a reference stabilization index (CER).
          In addition,  the obligations of the National Public Sector  converted
          into pesos as explained  earlier accrue interest at rates ranging from
          2% to 5%,  depending  on the  characteristics  of the  original  debt.

                                       63

<PAGE>

                         Grupo Financiero Galicia S.A.
   "Corporation which has not adhered to the Optional System for the Mandatory
                   Acquisition of Shares in a Public Offering"
                 Notes to the Financial Statements (Continued)
                  (figures stated in thousands of US dollars)

NOTE 1:   (Continued)

          Other assets and liabilities

          As established by Decree 410/02 and complementary  rules,  futures and
          option contracts,  including those recorded in self-regulating markets
          and the accounts  exclusively  earmarked  for the  operations of those
          markets were not converted into pesos at the $ 1 = US$ 1 exchange rate
          as  established  by  Section  1 of  Decree  214/02,  except  for those
          governed by Argentine legislation agreed before January 5, 2002, where
          at least one of the parties must be a financial  institution  and have
          been settled as from June 12, 2002, which will be converted into pesos
          at $1.40 per US dollar.
          Decree 410/02 also established that:
          a)  Fiscal  credit  certificates  issued  in US  dollars  or any other
          foreign  currency within the framework of Decrees 979/01,  1005/01 and
          1226/01 and in force at February 3, 2002, were converted into pesos at
          the exchange  rate of $ 1.40 per US$ 1 or its  equivalent in any other
          foreign currency.
          b) The balances of the financial institution accounts in US dollars or
          any other  currencies  at the close of operations at February 1, 2002,
          which may be computed to comply with liquidity  reserve  requirements,
          except for legal tender currency  available and the amount  equivalent
          to the balances of accounts earmarked exclusively to the operations on
          self-regulating futures and options markets, were converted into pesos
          at the exchange rate of $ 1.40 per US$ 1.
          The same  treatment  has been accorded to the amounts  contributed  by
          financial  institutions  to the Bank  Liquidity  Fund  established  by
          Decree 32/01 and to the debts institutions have with that Fund.

          Reorganization and bankruptcy proceedings

          On  January  30,  2002,  Law 25563 on  reorganization  and  bankruptcy
          proceedings  was  enacted,  which  declared  a  production  and credit
          emergency generated by the crisis affecting  Argentina,  to last until
          December  10,  2003.  Below  is a  detail  of  some  of  the  measures
          adopted:
          a)  Suspension  for one hundred and eighty days as from the  effective
          date of that Law, of all mortgage,  pledge and other  foreclosures  of
          whatever origin ordered in reorganization proceedings, whether they be
          made  extrajudicially  or in execution  of judgment  (Section 9 of Law
          25563).
          b)  Suspension  for one hundred and eighty days of the  expedition  of
          petitions in bankruptcy filed, without prejudice to the possibility of
          applying the measures envisaged in Section 85 of Law 24522 (Section 11
          of Law 25563).

                                       64

<PAGE>

                         Grupo Financiero Galicia S.A.
   "Corporation which has not adhered to the Optional System for the Mandatory
                   Acquisition of Shares in a Public Offering"
                 Notes to the Financial Statements (Continued)
                  (figures stated in thousands of US dollars)

NOTE 1:   (Continued)

          c) Access to credit by insolvent  individuals  and/or legal  entities,
          for which the  Argentine  Central  Bank will  proceed to regulate  the
          elimination of all restrictions  which otherwise hinder such access to
          credit or make it more
          expensive,   and  implement  a  rediscount  line  intended  for  those
          financial  institutions  that provide  credit  assistance to insolvent
          companies  that are in the stage  envisaged in Section 43 of Law 24522
          (Section 12 of Law 25563).
          d)   Financial   institutions   governed   by  Law  21526   (Financial
          Institutions Law) and supplementary rules may proceed within a term of
          90 days to the  rescheduling of their  receivables from debtors of the
          financial system existing as of November 30, 2001 through an agreement
          to be reached with each of them (Section 15 of Law 25563).
          e)  Suspension  for one hundred  and eighty days of the  precautionary
          measures   awarded   and   prohibition   for  the  same  term  of  new
          precautionary  measures  requested on those assets that are  essential
          for the continuity of activities  related to debtors' normal course of
          business.  All  extraordinary  acts of  disposition of property on the
          part of debtors  will be null and void  during the  suspension  period
          envisaged in this  Section,  unless  there is an express  agreement by
          creditors (Section 16 of Law 25563).
          On May 15, 2002,  Law 25589 was enacted,  which amended Laws 24522 and
          25563. This Law introduced the following amendments:
          a) Section 9 of Law 25563 has been repealed.
          b) Section 11 of Law 25563 has been repealed.
          c) Section 15 of Law 25563 has been repealed.
          d)  Section  16 of Law 25563  has been  amended.  In this  connection,
          auctions of property that is the only dwelling of debtors or of assets
          used by them in the  production  and  sale of goods  or  providing  of
          services,  decreed in  executory  proceedings,  extrajudicially  or in
          execution of judgment,  shall be suspended  for one hundred and eighty
          calendar  days,  counted as from the effective  date of this Law. This
          Law shall not apply to  court-ordered  alimony  payments,  receivables
          derived from the  responsibility  for the commission of crimes,  those
          arising in labor  lawsuits,  as a result of third party  liability and
          from  insurance  companies  that have  underwritten  third party civil
          liability  policies,  receivables  arising after the effective date of
          this Law and the liquidation of assets under  bankruptcy  proceedings.
          The   application   of   restitutional   remedies  that  lead  to  the
          dispossession  of assets  earmarked  for the  activity of  commercial,
          manufacture  or other  establishments,  which are  required  for their
          functioning shall also be suspended.
          e) It is established that this Law will have legal effects on the date
          of its publication and applies to pending reorganization proceedings.

                                       65

<PAGE>

                         Grupo Financiero Galicia S.A.
   "Corporation which has not adhered to the Optional System for the Mandatory
                   Acquisition of Shares in a Public Offering"
                 Notes to the Financial Statements (Continued)
                  (figures stated in thousands of US dollars)

NOTE 1:   (Continued)

          In  November  2002,  when  the  180-day   suspension  period  expired,
          financial  institutions  agreed with the Executive  Branch a temporary
          suspension  of  foreclosures  of security  interests  until the end of
          January 2003.
          On  February  4,  2003,  Decree  204/03  was  issued,  by which  Legal
          Emergency  Units were  created.  These units will be  responsible  for
          mediating between debtors and creditors and will operate within a term
          of 90

          days as from February 6, 2003, date on which such decree was published
          in the Official Gazette.
          Those  units,   which  have  been   created  to  operate   within  the
          jurisdiction  of the Ministry of Labor and the Ministry of Production,
          will intervene at the request of debtors or creditors,  either of them
          voluntarily,  in those cases where  foreclosures of security interests
          have been sought on individuals or small and  medium-sized  companies.
          This  proceeding  is  voluntary  and does not mean the  suspension  or
          interruption of legal time limits or foreclosures made extrajudicially
          or in execution of judgment, as regulated by current norms.
          On May 6, 2003,  the House of  Representatives  converted into law the
          bill to continue the  postponement of the mortgage  foreclosure of the
          only family dwelling of debtors that had expired in November 2002.

          Suspension of the application of Section 94,  subsection 5 and Section
          206 of Law 19550 on Corporations
          Decree 1269/02 has suspended  until December 10, 2003 the  application
          of Section  94,  subsection  5 of Law 19550 which  establishes  that a
          company must be dissolved  due to the loss of its  corporate  capital.
          Section 206, which  establishes the mandatory  capital  reduction when
          losses exceed reserves and 50% of the capital has been suspended until
          that date.

          Legal actions requesting protection of constitutional guarantees
          As a result of the measures  adopted by the Government,  a significant
          number of complaints have been filed against the National State and/or
          institutions  comprised in the  financial  system by  individuals  and
          legal  entities,  as they understand that those measures are in breach
          of  constitutional  and  other  rights.  At the date of issue of these
          financial  statements the final outcome of those  complaints was still
          unknown.  As of April 30, 2003, the court orders  received by Banco de
          Galicia y Buenos Aires S.A. decreeing the reimbursement of deposits in
          their  original  currency or at the free exchange rate amounted to US$
          478,247 in compliance with court orders requiring the reimbursement of
          deposits   under  penalty  of  search  and/or  seizure  and/or  crimes
          involving  illegal  retention of deposits  and/or  contempt,  Banco de
          Galicia y Buenos Aires S.A. paid the amounts of

                                       66

<PAGE>

                         Grupo Financiero Galicia S.A.
   "Corporation which has not adhered to the Optional System for the Mandatory
                   Acquisition of Shares in a Public Offering"
                 Notes to the Financial Statements (Continued)
                  (figures stated in thousands of US dollars)

NOTE 1:   (Continued)

          US$ 311,322.
          The method of  proceeding  in those  lawsuits  and the  admission  and
          execution  of  provisional  remedies  that  decree,  for any reason or
          title,  the material  delivery of the pledged assets to the petitioner
          have been regulated by the above mentioned  Decree 214/02,  as amended
          by Decree  320/02,  in turn  amended  and  complemented  by the Public
          Emergency and Exchange System Reform Law 25587 and Decree 676/02 (both
          of them  published in the Official  Gazette on April 26, 2002),  which
          are  applicable  to all pending  lawsuits and  precautionary  measures
          pending  execution,  whatever the date of the related  court order may
          be, issued in judicial  proceedings of whatever  nature in relation to
          credits,  debts,  obligations,  deposits or  rescheduling of financial
          debts  which may be deemed to be affected  by the  regulations  of Law
          25561 and regulatory and complementary rules.

          On July 23, 2002,  Decree 1316/02 suspended for one hundred and twenty
          working  days,  compliance  with and  execution  of all  precautionary
          measures and final judgments  issued in the legal actions  referred to
          by Section 1 of Law 25587,  except for those cases where life,  health
          or physical  integrity of individuals  are at risk, or if the claimant
          were to be an individual of 75 years old or more. In the latter cases,
          requests for the execution of precautionary measures or judgments that
          estimate the amount of the claim must be  submitted  to the  Argentine
          Central  Bank.  It should be noted that this Decree has been  declared
          unconstitutional  by most courts,  so the  application of penalties of
          search  and/or  seizure  to seek  payment  of  deposits  has not  been
          completely suspended.
          Lastly, on September 16, 2002 Decree 1836/02 was issued, Section 17 of
          which  provides  that  financial  institutions  may offer the total or
          partial  reimbursement of deposits with "National  Government bonds in
          US dollars accruing interest at Libor and due 2006" in lieu of payment
          to the holders of rescheduled  deposits covered by Section 4 of Decree
          905/02,  who  have  brought  legal  actions  questioning  the  current
          legislation applicable to deposits with the financial system, that are
          pending  resolution at the effective date of this Decree and for which
          precautionary  measures are ordered. The issue terms and conditions of
          the above-mentioned bonds are detailed in Section 12 of Decree 905/02,
          except for the issue and due dates, which will be October 30, 2002 and
          January 30, 2006, respectively.
          Depositors  who have  brought  legal  actions may opt to accept  those
          bonds.

          The  difference of US$ 157,550  between the amount paid as a result of
          the measures  mentioned above and the amount resulting from converting
          deposits  at $1.40 per US dollar,  adjusted  by  applying  the CER and
          interest

                                       67

<PAGE>

                         Grupo Financiero Galicia S.A.
   "Corporation which has not adhered to the Optional System for the Mandatory
                   Acquisition of Shares in a Public Offering"
                 Notes to the Financial Statements (Continued)
                  (figures stated in thousands of US dollars)

NOTE 1:   (Continued)

          accrued at the payment  date,  has been recorded by Banco de Galicia y
          Buenos Aires S.A. in  "Intangible  assets" as of March 31, 2003,  thus
          complying  with the provisions of Communique "A" 3916 of the Argentine
          Central Bank. At December 31, 2002, that Bank had recorded US$ 149,918
          in "Other  receivables  resulting from  financial  brokerage" for that
          item.

          Banco de Galicia y Buenos  Aires S.A.  has reserved its right to claim
          compensation for damages caused by the reimbursement of deposits in US
          dollars  or their  equivalent  in pesos  at the  free  exchange  rate,
          decreed under  precautionary  measures or judgments  issued by courts,
          and  which  have  not  been  included  by the  National  State  in the
          calculation of the compensation to Financial Institutions.  The method
          of accounting for that  compensation as a deferred loss,  envisaged by
          the  Argentine  Central  Bank in the  mentioned  Communique,  does not
          affect the  legitimacy of the rights.  Banco de Galicia y Buenos Aires
          S.A. has reserved its rights for such purposes.
          It should be noted that the Federal  Supreme  Court of Justice has not
          yet issued any decision on the legal  actions filed with it requesting
          protection of constitutional rights and that Decree 214/02 be declared
          unconstitutional



          Compensation to be granted to financial institutions
          Decree No.  214/02  provides  for the issue of a Bond payable with the
          funds of the National  Treasury to cover the deficit in the  financial
          system arising from the imbalance  generated by the application of the
          measures  mentioned  above,  that  is,  from the  devaluation  and the
          asymmetric  conversion into pesos of assets and liabilities.  In fact,
          in  accordance  with the  provisions  of Law  25561 and  Decrees  Nos.
          214/02,  320/02,  410/02,  471/02, 704/02, 905/02 and 992/02 and their
          amendments  and  complementary  rules,  and of Argentine  Central Bank
          Communiques  "A" 3467,  3507,  3561 and 3648 and their  amendments and
          complementary  rules, a significant portion of foreign currency assets
          and liabilities that formed part of the net foreign currency  position
          as of  December  31,  2001,  were  converted  into pesos at  different
          exchange rates.

          In June 2002, Decree 905/02  established the method of calculating the
          amount of the  compensation to be received by financial  institutions,
          which  replaced  Decree 494/02 that had  previously  established  such
          method.

          Sections  28 and 29 of that  Decree  established  the  restoration  of
          financial  institutions'  equity ratios at the time of the  conversion
          into pesos, by compensating them for:

                                       68

<PAGE>

                         Grupo Financiero Galicia S.A.
   "Corporation which has not adhered to the Optional System for the Mandatory
                   Acquisition of Shares in a Public Offering"
                 Notes to the Financial Statements (Continued)
                  (figures stated in thousands of US dollars)

NOTE 1:   (Continued)


          a) The  losses  arising  from  the  conversion  into  pesos of a large
          portion  of their  obligations  at the  exchange  rate of $1.40 per US
          dollar,  which is higher  than the  exchange  rate of $1 per US dollar
          applied  for the  conversion  into  pesos of  certain  receivables  in
          foreign currency, by means of the delivery of a Compensating Bond, for
          which the issuance of "National  Government  Bonds in pesos, due 2007"
          (BODEN 2007), was established;

          b) The  mismatching  of their  foreign  currency  positions  after the
          mandatory conversion into pesos of a portion of their loan and deposit
          portfolios, by transforming the Compensating Bond originally issued in
          pesos  into a bond  in US  dollars  and,  if  necessary,  through  the
          subscription  of a  Coverage  Bond in US  dollars.  To this  end,  the
          issuance of  "National  Government  Bonds in US  dollars,  Libor 2012"
          (BODEN 2012) has been established.

          Argentine  Central Bank  Communique "A" 3650 and  complementary  rules
          established  the procedure that financial  institutions  were to carry
          out for calculating the  Compensating  and Coverage Bonds, the amounts
          of  which  were to be  calculated  taking  into  account  the  foreign
          currency  balances as of December 31, 2001,  as shown in the statement
          of  financial  condition  of the parent  company and  subsidiaries  in
          Argentina audited at that date;  however,  insofar as concerns foreign
          branches and subsidiaries  and  subsidiaries  engaged in supplementary
          activities,  this  compensation  has been  restricted  to the negative
          effects of the mandatory conversion into
          pesos of the credit  assistance  granted to the  National  State under
          Secured Loans. Therefore, the impact on the remaining foreign currency
          position subject to Argentine  legislation,  of the application of the
          mentioned economic measures has not been compensated so far.

          This method of determining the amount of the Compensating and Coverage
          Bonds,  which does not  contemplate  certain  assets  and  liabilities
          converted  into  pesos  due  to  the  application  of  Decree  214/02,
          corresponding  to foreign  branches and  subsidiaries  and  controlled
          entities  engaged  in  supplementary   activities,   is  not  only  in
          disagreement  with the  objectives  established  by Decrees 214/02 and
          905/02,  and is  therefore  detrimental  to Banco de  Galicia y Buenos
          Aires S.A.'s assets,  but is also an essentially  arbitrary act in the
          light  of the fact  that  identical  economic  acts  are  included  or
          excluded  from  the  compensation,  depending  on  whether  they  were
          performed  directly by Banco de Galicia y Buenos Aires S.A. or through
          a  subsidiary,  or whether the  receivable  originated  abroad is of a
          public or private origin.

                                       69

<PAGE>

                         Grupo Financiero Galicia S.A.
   "Corporation which has not adhered to the Optional System for the Mandatory
                   Acquisition of Shares in a Public Offering"
                 Notes to the Financial Statements (Continued)
                  (figures stated in thousands of US dollars)

NOTE 1:   (Continued)

          Through a letter  dated  September  16,  2002 sent to the  Ministry of
          Economy of the  Nation and to the  Argentine  Central  Bank,  Banco de
          Galicia y Buenos  Aires S.A.  formally  stated its claim  against  the
          procedure  used,  reiterating  prior  presentations,  and left express
          evidence  that "it will not  accept or  approve  the  validity  of any
          system  that may lead to  losses  of its  assets,  which are not fully
          compensated,  or to the exclusion from the  compensation of assets and
          liabilities  corresponding  to branches,  subsidiaries  and controlled
          entities  engaged in  supplementary  activities  that form part of the
          consolidated assets of Banco de Galicia y Buenos Aires S.A.". The Bank
          also  reserved  its right to appeal  to a  federal  court for  damages
          caused by those  measures  and by the facts or  omissions  that may be
          attributable  to the National State which may affect the guarantees of
          inviolability of private property and tax equality.

          The Argentine  Central Bank  Communiques  mentioned above set July 29,
          2002 as the deadline for complying with the reporting requirements, so
          that each institution could report the amount in bonds to which it was
          to become entitled.  Banco de Galicia y Buenos Aires S.A. has complied
          with this  requirement  but,  during  September  2002,  the  Argentine
          Central Bank released  Communique "A" 3716, which established  changes
          in the method.  This led to a new presentation being made on September
          16, 2002.  The amount  determined in line with current  regulations at
          that date was US$ 787,541 in respect of compensation  and US$ 618,229,
          in respect of the coverage of the negative foreign currency position.

          On October 28, 2002,  National Executive Branch Decree 2167/02 amended
          Section  29 of Decree  905/02,  including  in the  calculation  of the
          compensation  the assets recorded at foreign branches and subsidiaries
          covered  by  Decree  214/02  and  supplementary  rules,  but  did  not
          contemplate any modification regarding assets and liabilities recorded
          at controlled  companies  engaged in supplementary  activities,  which
          were  also  affected  by the  regulations  of that  decree  and  still
          continue to be excluded from such  compensation.  For this reason, the
          statements  made in connection  with these  companies are still valid.
          Through  Communiques "A" 3805 and "A" 3825, the Argentine Central Bank
          ruled the amendments established by Decree 2167/02, establishing a new
          reporting requirement, the deadline of which was December 23, 2002.
          A total amount was determined at approximately  US$ 2,254,027 in BODEN
          2012 (face value) for the compensation.  This amount may be subject to
          changes arising from  amendments to regulations or from  presentations
          by customers under the terms of Communique "A" 3561 and  supplementary
          rules,  and is  subject  to  review  by the  Argentine  Central  Bank.
          Furthermore,

                                       70

<PAGE>

                         Grupo Financiero Galicia S.A.
   "Corporation which has not adhered to the Optional System for the Mandatory
                   Acquisition of Shares in a Public Offering"
                 Notes to the Financial Statements (Continued)
                  (figures stated in thousands of US dollars)

NOTE 1:   (Continued)

          Banco de Galicia y Buenos  Aires S.A.  has  submitted  a letter to the
          Central Bank requesting  authorization  for the transfer of securities
          for  an  amount  equivalent  to the  net  effect  of the  compensation
          received  for  the  assets   converted  into  pesos  recorded  at  the
          subsidiary  Banco de  Galicia  Uruguay  S.A.,  which is  estimated  at
          approximately US$ 438,000.

          The amount of US$ 201,247 for the  compensation  received was recorded
          in "Government securities -in foreign currency- Holdings in investment
          accounts",  and the  amount  receivable  of US$  2,085,543  in  "Other
          receivables resulting from financial brokerage - In foreign currency -
          Compensation to be received from the National Government".

          The advance to be requested  from the  Argentine  Central Bank for the
          subscription  of the  Coverage  Bond,  including  the effect of Decree
          2167/02,  was recorded in "Other liabilities  resulting from financial
          brokerage  - In pesos -  Advances  for the  acquisition  of  "National
          Government Bonds in US dollars,  Libor 2012", for US$ 578,883.  Should
          adjustments  from  application of the CER and accrued interest for US$
          270,490 have been included, the total amount would be US$ 849,373.

          The compensation for the positive difference between the Shareholders'
          Equity as of December 31, 2001 and that  resulting  from adjusting the
          net foreign currency position at that date converted into pesos at the
          exchange rate of $1.40 per US dollar,  for US$ 491,254,  stated in the
          period-end currency value, was reflected in the "Unrealized  valuation
          difference  arising from the  compensation of the net foreign currency
          position" account,  in the Shareholders'  Equity of Banco de Galicia y
          Buenos  Aires  S.A.,  as  provided  for  by  Argentine   Central  Bank
          Communique  "A"  3703.  This  criterion   differs  from   professional
          accounting standards.  Therefore, should the latter have been applied,
          the  accumulated  losses for the previous  year before the  absorption
          envisaged in Communique "A" 3800 would have decreased by that amount.

          The  terms  and  conditions  for  financing  the  subscription  of the
          "National  Government  Bonds  in US  dollars  Libor  2012"  have  been
          stipulated  in  Section  29,   subsection  g)  of  Decree  905/02  and
          contemplate  the  delivery  by  financial  institutions  of  assets as
          collateral for at least 100% of the advance received.

                                       71

<PAGE>

                         Grupo Financiero Galicia S.A.
   "Corporation which has not adhered to the Optional System for the Mandatory
                   Acquisition of Shares in a Public Offering"
                 Notes to the Financial Statements (Continued)
                  (figures stated in thousands of US dollars)

NOTE 1:   (Continued)

          Treatment  accorded to extraordinary  assistance  granted to financial
          institutions by the Argentine Central Bank

          Decree  739/03  issued  on March  28,  2003  establishes  a  voluntary
          procedure  for the  repayment of the  assistance  granted to financial
          institutions by the Argentine  Central Bank during the economic crisis
          that affected the financial  system as from 2001. The basic  criterion
          consists of balancing  the cash flows of financial  institutions  that
          are debtors  for  rediscounts  and  creditors  for  holdings of public
          sector securities at the same time.
          Section 9 of the above-mentioned Decree provides that the balances due
          must be amortized in pesos in the same number of  installments  as the
          assets granted as collateral  for the  rediscounts  obtained,  without
          exceeding 70  installments.  In this  connection,  Communique  "A"3941
          establishes a minimum accumulated  amortization schedule and a monthly
          repayment of at least 0.90% of the  adjusted  balance.  Mandatory  and
          voluntary  accelerated  amortization  is  envisaged  when  the rate of
          interest  collected  on the  assets  granted  as  collateral  for  the
          rediscounts exceeds 3.5% per annum.
          It  is  also   established   that  the  assistance   subject  to  this
          amortization  system must be secured by the delivery of Loans  Secured
          by the National Government originated under Decree 1646/01 or, failing
          this,  Bonds  secured by the  National  Government  issued  within the
          framework of Decree No.  1579/02 or Bonds  issued  under  Decrees Nos.
          905/02,  1836/02 and 739/03. The Argentine Central Bank may modify the
          above-mentioned   amortization   conditions  when  the  Unit  for  the
          Restructuring  of the  Financial  System  (created  under  Decree  No.
          1262/03)  so  establishes  it  and  provided  some  of  the  following
          conditions are met:
          a) Assets  granted as collateral for the  assistance  received  expire
          after 70 months on average.
          b) The financial institution is within the framework of the situations
          envisaged  in  Sections  34 and 35 bis of Law 21526 and has  adopted a
          transformation  and  reorganization  plan approved by the Unit for the
          Restructuring of the Financial System.
          In  this  case,  amortization  shall  be made in the  same  number  of
          installments  as that of the  assets  granted  as  collateral  for the
          rediscounts  received,  with a maximum of 120 installments,  a monthly
          amortization not lower than 0.40% being envisaged.
          The  financial  institutions  that  wish to avail  themselves  of this
          special  assistance  amortization  system must have  normalized  their
          foreign debt situation before December 5, 2003.



                                       72

<PAGE>

                         Grupo Financiero Galicia S.A.
   "Corporation which has not adhered to the Optional System for the Mandatory
                   Acquisition of Shares in a Public Offering"
                 Notes to the Financial Statements (Continued)
                  (figures stated in thousands of US dollars)

NOTE 1:   (Continued)

          Claims due to  exchange  differences  arising  from the  repayment  of
          financial  assistance  during the exchange holidays that took place in
          January 2002
          During  December 2001,  Banco de Galicia y Buenos Aires S.A.  received
          assistance in pesos from the Argentine Central Bank to cover temporary
          lack of liquidity. This assistance was repaid applying resources in US
          dollars  granted by the Bank  Liquidity Fund (BLF) on January 2 and 4,
          2002.
          At the date those funds were credited,  the Argentine Central Bank had
          declared exchange holidays.
          Before the markets were reopened,  Law 25561 was enacted on January 6,
          2002,  which  repealed  the  convertibility  system  and fixed the new
          exchange rate of $1.40 per US dollar.
          As a result of the mentioned norms,  during the exchange  holidays the
          Bank was unable to perform exchange operations.
          Accordingly,  the funds in US dollars credited by the BLF on January 2
          and 4,  2002 had to  remain  in US  dollars  until  the  markets  were
          reopened.
          At the date markets were reopened, in view of the terms and conditions
          of the norms in force, the US dollar was sold at $1.40.

          For this reason, when the Argentine Central Bank allocated US$ 410,000
          for Banco de Galicia y Buenos Aires to repay the financial  assistance
          provided to it, should have  allocated US$ 410,000 at $1.40,  that is,
          the amount of thousand $ 574,000.


          This has affected the guarantees of  inviolability of private property
          and equality under the law.
          Banco de Galicia y Buenos Aires  considers  that the difference of US$
          55,034  should be returned to it restated as of January  2002,  or its
          equity should be restored for an equivalent amount.

          Situation of Banco de Galicia y Buenos Aires S.A. and its subsidiaries

          The situation described above affected Banco de Galicia y Buenos Aires
          S.A.  in the form of a lack of  liquidity  as a result  of the drop in
          deposits  that was so  significant  that it made it necessary  for the
          bank to request financial assistance from the Argentine Central Bank.

          As of April 30, 2003,  the amount of deposits  with Banco de Galicia y
          Buenos  Aires S.A.  in  Argentina  was  approximately  US$  1,212,813,
          whereas the  assistance  received from the  Argentine  Central Bank to
          cover temporary lack of liquidity amounted to US$ 1,871,322.

                                       73

<PAGE>
                         Grupo Financiero Galicia S.A.
   "Corporation which has not adhered to the Optional System for the Mandatory
                   Acquisition of Shares in a Public Offering"
                 Notes to the Financial Statements (Continued)
                  (figures stated in thousands of US dollars)

NOTE 1:   (Continued)

          Within  this  context,  on March 21,  2002,  Banco de Galicia y Buenos
          Aires S.A.  submitted to the Argentine  Central Bank a  regularization
          and rehabilitation  plan called "Galicia  Capitalization and Liquidity
          Plan" which mainly contemplates:
          a. the immediate  restoring of its liquidity levels, the supply of the
          necessary resources to achieve a solid position which enables Banco de
          Galicia y Buenos Aires S.A. to reimburse a significant  portion of its
          deposits;   and
          b. a subsequent significant increase in its capitalization levels.
          This Plan also includes the negotiation with foreign  creditors of the
          restructuring  of the debt that Banco de  Galicia y Buenos  Aires S.A.
          carries  with  them  and the  orderly  closing-down  of the  operating
          branches abroad.


          The strengthening of liquidity is achieved as follows:

          o    Securitization  (and/or sale) of its mortgage and commercial loan
               portfolio  through  trusts or  assignment  of credits for a total
               amount  of  US$  134,228,  which  were  subscribed  by  financial
               institutions during April 2002.
          o    Loan from Seguros de Depositos S.A.  (SE.DE.S.A.)  for US dollars
               equivalent  to  US$  67,114,   converted  at  the  exchange  rate
               prevailing  on the day prior to that of the  disbursement,  for a
               term of five years and at the  180-day  LIBOR rate plus 300 basis
               points, which was subscribed on March 21, 2002.
          o    Loan from Fondo Fiduciario de Assistencia a Entidades Financieras
               y de Seguros  (F.F.A.E.F.y  S.) (Trust Fund for the Assistance to
               Financial Institutions and Insurance Companies) for the amount in
               US dollars equivalent to $100,000 (US$ 33,557),  converted at the
               exchange  rate  prevailing  on  the  day  prior  to  that  of the
               disbursement,  for a term of three  years  and at Libor  plus 400
               basis  points,  with a floor of 8.07%,  which was  subscribed  on
               April 30, 2002.
          In  addition,  the bank has  refinanced a debt of US$ 192,617 with the
          Bank  Liquidity  Fund for  three  years,  which was  settled  with the
          assistance  provided  by the  Argentine  Central  Bank  under the same
          conditions as those of the original debt on May 9, 2002.

          As  regards  capitalization,   within  the  framework  of  the  global
          renegotiation  of its  foreign  debt,  the  addition  of basic  and/or
          complementary   capital  is  expected   to  take  place   through  the
          subscription by foreign creditor banks, in exchange for their original
          debts, of ordinary shares or subordinated debt whether  convertible or
          not into ordinary shares, at the option of the participating banks.

                                       74

<PAGE>

                         Grupo Financiero Galicia S.A.
   "Corporation which has not adhered to the Optional System for the Mandatory
                   Acquisition of Shares in a Public Offering"
                 Notes to the Financial Statements (Continued)
                  (figures stated in thousands of US dollars)

NOTE 1:   (Continued)

          Banco de Galicia y Buenos Aires S.A. has formally started negotiations
          with a committee  that is composed  of the most  important  creditors.
          This committee was recently  created and is currently  making progress
          in the negotiations for obtaining a debt restructuring.
          The  plan  for   redefining   the  foreign   branches   includes   the
          Restructuring  Plan  involving  the New York Branch,  submitted to the
          Office of the  Comptroller of the U.S.  Treasury  ("OCC") on March 22,
          2002, which contemplates the voluntary and orderly  termination of the
          operations carried out by the Branch and its subsequent  closing-down.
          This  Restructuring  Plan required the payment of smaller  deposits by
          the Branch,  the  renegotiation  of its obligations with third parties
          and the transfer of the renegotiated  debts to the Head Office.  As of
          March 31, 2002, the New York Branch had obligations with third parties
          for a total amount of approximately US$ 331,000.

          At the date of these  financial  statements,  the New York  Branch had
          concluded the  restructuring of all its obligations with third parties
          and closed its  operations.  The dissolution of this Branch took place
          on January 30, 2003.
          The   restructuring  of  the  New  York  Branch's  debt  consisted  in
          rescheduling  its commercial debt amounting to US$ 51,000 in the short
          term paying 20% of it in cash and  transferring  the  remaining 80% to
          Banco de Galicia y Buenos Aires S.A., its Head Office in Argentina. At
          the date of these  financial  statements the total amount of that debt
          had been settled.  Also, of the total financial debt of  approximately
          US$ 237,000,  of which US$ 200,000 had been  instrumented as two bonds
          of US$ 100,000 each,  US$ 125,500 were  rescheduled at the Head Office
          for a term of 5 years, with a grace period of 2 years, US$ 68,900 were
          paid in cash and a debt reduction of US$ 42,600 was granted.  Of total
          deposits of US$ 30,000,  the Branch  paid in cash  deposits  for lower
          amounts  totaling US$ 12,500,  and  rescheduled US$ 17,000 at the Head
          Office.  The rest of  obligations  and  contingencies  for  letters of
          credit were transferred to the Head Office.
          Furthermore,  within the  framework of this Plan,  the  representation
          offices at Sao Paolo (Brazil) and London (United Kingdom),  as well as
          Galicia y Buenos Aires Securities (UK) Ltd., the company controlled by
          the Bank and organized in the United Kingdom, have been closed down.


          The Plan also  contemplates  the corporate  restructuring  of Banco de
          Galicia  y  Buenos  Aires  S.A.,  with  a  significant   reduction  in
          administrative  expenses, to adapt it to the lower levels of activity.
          After  the  end of the  period  and at the  date  of  these  financial
          statements,  approximately US$ 43,624 were paid in respect of employee
          voluntary retirement.

                                       75

<PAGE>

                         Grupo Financiero Galicia S.A.
   "Corporation which has not adhered to the Optional System for the Mandatory
                   Acquisition of Shares in a Public Offering"
                 Notes to the Financial Statements (Continued)
                  (figures stated in thousands of US dollars)

NOTE 1:   (Continued)


          Furthermore,   under  the  terms  of  Law  No.   21526  on   financial
          Institutions,  the Bank has requested  exemption from  compliance with
          the  pertinent  technical  ratios and the  reduction of the charges or
          fines arising from any  temporary  non-compliance  incurred  until the
          plan is implemented.
          The plan was  approved  by the  Board of  Directors  of the  Argentine
          Central Bank on May 3, 2002 through Resolution No. 281.

          The situation described above also affected Banco Galicia Uruguay S.A.
          and Banco de Galicia  (Cayman) Ltd.,  entities  controlled by Banco de
          Galicia y Buenos Aires S.A..
          On February 6, 2002, Banco Galicia Uruguay S.A.  submitted a letter to
          the  Central  Bank of  Uruguay  in  order  to:  (i)  inform  it of its
          temporary  lack of liquidity,  which  prevented it from  continuing to
          face the  withdrawal of deposits;  (ii) request  financial  assistance
          from that entity to be able to preserve its ability to  reimburse  all
          deposits  in an  orderly  manner  and  face  the  withdrawal  of funds
          generated by the developments that took place in Argentina,  and (iii)
          request the  authorization  of that entity to temporarily  suspend its
          operations.

          On  February  13,  2002  the  Central  Bank  of  Uruguay  resolved  to
          preventively  intervene in Banco Galicia  Uruguay S.A. and temporarily
          suspend  all  its  activities  for  a  term  of  90  days,  which  was
          subsequently extended until February 28, 2003.

          On June 10,  2002,  Banco de Galicia  Uruguay  S.A.  submitted  to the
          Central Bank of Uruguay a proposal for the  restructuring  of its debt
          in respect of  deposits.  The  proposal  consists  in an initial  cash
          payment in US dollars  equivalent  to 3% of the amounts  receivable by
          each  depositor,  and for the remaining  amount,  in a time deposit or
          negotiable obligations issued by Banco de Galicia Uruguay S.A., at the
          customers'  option,  all of them falling due in September  2011, to be
          amortized in nine annual and consecutive  installments,  the first two
          installments for 15% of the balance,  and the following ones, for 10%,
          at a fixed interest rate of 2% per annum.


          On June 20,  2002, a letter was  presented  before the Central Bank of
          Uruguay   offering  a  pledge  on  Banco  de  Galicia  Uruguay  S.A.'s
          commercial receivables as collateral for the proposal.
          On July 18,  2002,  the  Central  Bank of  Uruguay  informed  Banco de
          Galicia  Uruguay  S.A.  that it would not object to any  proposal  the
          latter could make to its depositors  provided at least a 75% adherence
          is obtained.

                                       76

<PAGE>

                         Grupo Financiero Galicia S.A.
   "Corporation which has not adhered to the Optional System for the Mandatory
                   Acquisition of Shares in a Public Offering"
                 Notes to the Financial Statements (Continued)
                  (figures stated in thousands of US dollars)

NOTE 1:   (Continued)

          This percentage represents the majority legally required to achieve an
          out-of-court  reorganization  plan, pursuant to Uruguayan  legislation
          (Section 29 and subsequent sections of Law 2230 of June 2, 1893).

          Acceptance by depositors  represented deposits for US$ 930,000, out of
          a total amount of US$ 1,176,000, corresponding to the holders of 7.067
          accounts over a total of 12,271 accounts. This is equivalent to 79% of
          total deposits, which shows the confidence customers have in the bank.

          On  December  23,  2002,  the Court of  Montevideo  hearing  the case,
          approved the reorganization plan requested by Banco de Galicia Uruguay
          S.A..

          In  accordance  with a  resolution  adopted  by the  Central  Bank  of
          Uruguay,   as  from  January  9,  2003,  Banco  Galicia  Uruguay  S.A.
          implemented a payment program, which contemplates the reimbursement of
          100% of deposits in US dollars plus interest to investors.  As agreed,
          the first step  consists  of an initial  payment of 3% in cash to each
          holder of time, savings account and demand deposits as of February 13,
          2002, as well as the delivery of transferable rescheduled time deposit
          certificates, as the case may be, issued by Banco Galicia Uruguay S.A.
          The  situation  of  Banco  de  Galicia   Uruguay  S.A.   affected  its
          subsidiary,  Banco de Galicia (Cayman) Limited and,  consequently,  on
          July 19,  2002 the  authorities  in the  Cayman  Islands  appointed  a
          provisional  liquidator  at the  request of Banco de Galicia  (Cayman)
          Limited, in order to reach a voluntary restructuring agreement between
          that entity and its creditors,  adopting the corresponding measures to
          preserve that company's  assets.  The restructuring of the liabilities
          of Banco de Galicia  (Cayman)  Limited is currently  under way. On May
          29, 2003, Banco de Galicia y Buenos Aires S.A.  submitted the proposal
          to be made to creditors to the Court having jurisdiction in the Cayman
          Islands..

          The developments described in the section entitled "Compensation to be
          granted to financial  institutions" proved financially  detrimental to
          Banco de Galicia Uruguay S.A., due to the devaluation of the Argentine
          currency  and  the  mandatory  conversion  into  pesos,  at  different
          exchange rates,  of a portion of its  receivables in foreign  currency
          subject to Argentine legislation.


          Such  losses  have  been  generated  by the fact  that,  as  mentioned
          earlier,   Decree  905/02   excluded  from  the   calculation  of  the
          Compensating  and Coverage Bonds the assets converted into pesos owned
          by companies

                                       77

<PAGE>

                         Grupo Financiero Galicia S.A.
   "Corporation which has not adhered to the Optional System for the Mandatory
                   Acquisition of Shares in a Public Offering"
                 Notes to the Financial Statements (Continued)
                  (figures stated in thousands of US dollars)

NOTE 1:   (Continued)

          engaged in supplementary activities and controlled by Banco de Galicia
          y Buenos  Aires S.A.,  and by foreign  branches and  subsidiaries.  In
          other  words,  the  objective  envisaged  in  Section 7 of Decree  No.
          214/02,  which  consists in  "establishing  the  issuance of a Bond to
          cover the imbalance in the financial system",  has only been partially
          met in the case of Banco de  Galicia y Buenos  Aires  S.A.  under that
          decree.  Subsequently,  Decree  2167/02  and  Argentine  Central  Bank
          Communique  "A" 3805  corrected  that  omission by  complementing  the
          calculation of the compensation including in it the assets recorded at
          foreign branches or subsidiaries subject to Decree 214/02 (see section
          entitled "Compensation to be granted to financial institutions").

          Within this context,  Banco de Galicia y Buenos Aires S.A. agreed with
          Banco Galicia  Uruguay S.A. to perform the  necessary  acts to provide
          the  latter  company,  where  applicable  and  subject  to  the  prior
          authorization of the Argentine  Central Bank, with the necessary funds
          for it to be able to reimburse all rescheduled deposits.

          Subsequently,   the  two  financial  institutions   complemented  that
          agreement  through  another  agreement  which explained that the legal
          effects, whether direct or indirect, of the declarations and covenants
          contained in the agreement,  and the  fulfillment  of the  commitments
          undertaken  are  subject  to the  normalization  of the  economic  and
          financial situation of Banco de Galicia y Buenos Aires S.A. and to the
          repayment of the financial  assistance  granted to it by the Argentine
          Central  Bank.  These  circumstances  are  mentioned  in  point  52 of
          Resolution  No. 281 issued by that body.  Furthermore,  as a result of
          the  intervention  of the  Central  Bank of Uruguay  in Banco  Galicia
          Uruguay  S.A.,  it is not  possible  to  obtain  financial  statements
          prepared in accordance with Argentine accounting standards. In view of
          this, and in compliance with the Galicia  Capitalization and Liquidity
          Plan, Banco de Galicia y Buenos S.A. has decided to record a provision
          to fully cover the value of its  investments in Banco Galicia  Uruguay
          S.A. and Banco de Galicia  (Cayman) Limited in the amounts recorded as
          of December  31, 2001.  Furthermore,  if the  circumstances  described
          still  persist,  the valuation of those  investments  under the equity
          method of accounting and the consolidation of the financial statements
          of the two subsidiaries  with those of Banco de Galicia y Buenos Aires
          S.A. should be discontinued.



                                       78

<PAGE>

                         Grupo Financiero Galicia S.A.
   "Corporation which has not adhered to the Optional System for the Mandatory
                   Acquisition of Shares in a Public Offering"
                 Notes to the Financial Statements (Continued)
                  (figures stated in thousands of US dollars)

NOTE 1:   (Continued)

          According  to the  estimates  made by Banco de Galicia y Buenos  Aires
          S.A.  on the  basis of  documentation  and  information  held by it, a
          provision  of US$ 244,351  has been  recorded  in  Provisions  - Other
          contingencies,  under liabilities, which is equivalent to the negative
          consolidated  equity of the two  subsidiaries  estimated  at March 31,
          2003.

          In view of the  situation  described,  Banco de Galicia y Buenos Aires
          S.A.  ratified  its  intention  to continue  with the  business of its
          Uruguayan  subsidiary  and  comply  with  the  commitments  previously
          undertaken, subject to the authorizations which may be required.
          Had the two  companies  been  included in the  consolidated  financial
          statements of Grupo  Financiero  Galicia S.A.,  the main  consolidated
          statement  of financial  condition  figures as of March 31, 2003 would
          have been approximately as follows:

<TABLE>
<CAPTION>
                  ASSETS                                 US$         LIABILITIES                        US$
                  <S>                                    <C>         <C>                                <C>
                  Cash and due from banks                200,445     Deposits                          1,724,838
                  Government and corporate                           Other liabilities  resulting
                  securities                             553,655     from financial brokerage          5,165,431
                  Loans                                3,480,196     Other liabilities                   201,204
                  Other receivables resulting from                   Shareholders' equity                536,306
                  financial brokerage                  2,708,652
                  Other assets                           684,831
</TABLE>


          The  impact  of all the  measures  adopted  to  date by the  Argentine
          Government on the financial  statements  of Grupo  Financiero  Galicia
          S.A. and its  controlled  entities as of March 31, 2003 was recognized
          according to  evaluations  and estimates made at the date of preparing
          them.  Future actual results might differ from those  evaluations  and
          estimates and those differences could be significant.  Therefore,  the
          financial  statements of Grupo Financiero  Galicia S.A. may not report
          all the adjustments that could result from these adverse conditions or
          from any future  amendments that could be made to legal and regulatory
          norms  in  force.  Furthermore,  at this  time it is not  possible  to
          foresee the effect of future  development of the country's  economy or
          its  consequences  on the  economic  and  financial  position of Grupo
          Financiero Galicia S.A. and its controlled entities.

          Thus,  any decision that must be made on the basis of these  financial
          statements  must take into  account  the future  development  of these
          measures and the financial  statements must be considered in the light
          of these uncertain circumstances.

                                       79

<PAGE>


                         Grupo Financiero Galicia S.A.
   "Corporation which has not adhered to the Optional System for the Mandatory
                   Acquisition of Shares in a Public Offering"
                 Notes to the Financial Statements (Continued)
                  (figures stated in thousands of US dollars)

NOTE 2:   FINANCIAL STATEMENT PRESENTATION BASIS

          Through  Resolutions Nos C 238/01,  C 243/01, C 261/01, c 262/01 and C
          187/02,   the  Professional   Council  in  Economic  Sciences  of  the
          Autonomous  City  of  Buenos  Aires  (CPCECABA)   approved   Technical
          Pronouncements Nos. 16, 17, 18, 19 and 20, respectively.  Furthermore,
          the National  Securities  Commission (CNV) has adopted those Technical
          Pronouncements adding certain modifications to them. These regulations
          are mandatory for fiscal years commencing as from January 1, 2003.
          These financial statements have been stated in thousands of US dollars
          and prepared in accordance  with  disclosure and valuation  accounting
          standards  contained  in  Technical   Pronouncements   issued  by  the
          Argentine  Federation of  Professional  Councils in Economic  Sciences
          (FACPCE),  approved with certain modifications by the CPCECABA, and in
          line with Resolutions issued by the CNV.
          The financial  statements  for the periods of three months ended March
          31,  2003 and 2002  have  been  subject  to a  limited  review  by the
          external  auditors  of the  Company.  The  Management  of the  Company
          considers they include all the necessary adjustments to present fairly
          the results for each period.
          As  established   by   professional   accounting   standards  and  CNV
          resolutions,  recognition of the effects of inflation has been resumed
          since January 1, 2002,  considering  that the accounting  measurements
          originating  prior to December  31, 2001 are stated in the currency of
          that date.


          On March 25, 2003,  the National  Executive  Branch  issued Decree 664
          establishing that the financial  statements for fiscal years ending as
          from  that  date be  stated  in  nominal  currency.  Consequently,  in
          accordance  with CNV Resolution No. 441/03,  the Company  discontinued
          the  restatement  of its  financial  statements as from March 1, 2003.
          Although  this  criterion  is  not  in  accordance   with   prevailing
          professional  accounting standards,  this departure has not produced a
          significant  effect on the  financial  statements.  In March  2003,  a
          deflation rate of 0.56% was recorded.  The index used in restating the
          items in these  financial  statements is the domestic  wholesale price
          index published by the National Statistics and Census Institute.

          For  comparative  purposes,  the  balances as of December 31, 2002 and
          March 31, 2002 have been restated  following the guidelines  contained
          in the preceding paragraphs of this Note.

          The  principal  accounting  policies  used in preparing  the financial
          statements are described below.

                                       80

<PAGE>

                         Grupo Financiero Galicia S.A.
   "Corporation which has not adhered to the Optional System for the Mandatory
                   Acquisition of Shares in a Public Offering"
                 Notes to the Financial Statements (Continued)
                  (figures stated in thousands of US dollars)

NOTE 2:   (Continued)


          a.   Assets and Liabilities in local currency

               Monetary assets and liabilities which include,  where applicable,
               the  interest  accrued  up to the  closing  date,  are  stated at
               period/year  end  currency  value,  so  they do not  require  any
               adjustment whatsoever.



          b.   Foreign currency Assets and Liabilities (US dollars)

               Foreign currency assets and liabilities (in US dollars) have been
               stated at Banco de la Nacion  Argentina  buying and selling rates
               of exchange, respectively, in force at the close of operations on
               the last working day of each period/year.  Interest receivable or
               payable has been accrued, where applicable.

          c.   Investments
               c.1. Current

                    Time and special current  account  deposits have been valued
                    at their face value,  plus interest  accrued at  period/year
                    end.

               The  negotiable  obligations  have been  valued at their  nominal
               value, plus accrued interest at period/year end.

               c.2. Non-current

                    Time deposits and special current account deposits have been
                    valued  at  their  face  value,  plus  interest  accrued  at
                    period/year end.

                    The equity interests in Banco de Galicia y Buenos Aires S.A.
                    (see Note 3.b.7.a. to the consolidated financial statements)
                    and Net  Investment  S.A. have been  accounted for under the
                    equity method as of March 31, 2003.

                    The  equity  interests  in  Sudamericana  Holding  S.A.  and
                    Galicia  Warrants  S.A.  have been  accounted  for under the
                    equity method, on the basis of December 31, 2002 and January
                    31, 2003 financial statements, respectively, and

                                       81

<PAGE>

                         Grupo Financiero Galicia S.A.
   "Corporation which has not adhered to the Optional System for the Mandatory
                   Acquisition of Shares in a Public Offering"
                 Notes to the Financial Statements (Continued)
                  (figures stated in thousands of US dollars)

NOTE 2:   (Continued)


                    considering  the  significant  movements  occurred from that
                    date to the closing date of these financial  statements,  in
                    accordance with professional accounting standards.

          d.   Fixed assets

               Fixed assets have been valued at their acquisition cost, restated
               into  constant  currency,  as  mentioned  in the fourth and fifth
               paragraphs  of this Note,  net of the  corresponding  accumulated
               depreciation.

               Depreciation  charges are calculated  following the straight-line
               method,  at rates determined based on the useful life assigned to
               the  assets,  which  is 60  months  for  hardware  and  software,
               furniture  and  fixtures  and  vehicles  and 600  months for real
               estate property.

               The  index-adjusted  net book  values of the  assets,  taken as a
               whole, do not exceed their estimated recoverable value.


          e.   Intangible assets

               Intangible  assets  have been valued at their  acquisition  cost,
               restated in constant  currency,  as  mentioned  in the fourth and
               fifth   paragraphs  of  this  Note,  net  of  the   corresponding
               accumulated  amortization,  calculated  based on their  estimated
               useful life.
               The Company has  recorded a valuation  allowance of US$ 1,007 for
               the  goodwill  for the  acquisition  of the  shares  representing
               87.50% of the capital stock and voting rights of Galicia Warrants
               S.A.
               Amortization  charges are calculated on a straight-line  basis in
               equal monthly installments over 60 months. The index-adjusted net
               book  values of the assets  taken as a whole do not exceed  their
               estimated recoverable value.
               As of March 31, 2003, the logotype and organization expenses were
               written off.

          f.   Income  Tax
               Income tax has been  determined  according  to the  deferred  tax
               method. (See Note 15).

                                       82

<PAGE>

                         Grupo Financiero Galicia S.A.
         "A Company not Adhered to the Optional Regime for the Mandatory
               Public Offering of Shares envisaged in the By-laws"
                 Notes to the Financial Statements (Continued)
                  (figures stated in thousands of US dollars)


NOTE 2:   (Continued)

          g.   Shareholders' Equity

               g.1. Activity  in the  shareholders'  equity  accounts  has  been
                    restated as mentioned in the fourth and fifth  paragraphs of
                    this Note.
                    The "Subscribed and paid-up capital" account has been stated
                    at its face value and at the value of the contributions,  in
                    the   currency   value  of  the   period   in  which   those
                    contributions  were actually made.  The  adjustment  derived
                    from the  restatement  of that account in constant  monetary
                    units has been allocated to the Capital Adjustment  account.
                    The closing  balance of the  retained  earnings  account has
                    been modified,  as disclosed  under the Statement of Changes
                    in  Shareholders'  Equity,  to  include  a "Prior  year gain
                    adjustment  of US$  6,092,  corresponding  to the  change of
                    criterion  for the  accounting  measurement  of  income  tax
                    adopted  by the  entities  controlled  by Banco de Galicia y
                    Buenos Aires S.A.





               g.2. Income and expense accounts

                    The results for each period have been  disclosed at restated
                    values  following the guidelines  detailed in the fourth and
                    fifth paragraphs of this Note.

          h.   Statement of cash flows

               The "Cash and due from banks"  caption is  considered to be cash.
               The  activity in that  statement  has been  presented in constant
               currency.








                                       83

<PAGE>

                         Grupo Financiero Galicia S.A.
         "A Company not Adhered to the Optional Regime for the Mandatory
               Public Offering of Shares envisaged in the By-laws"
                 Notes to the Financial Statements (Continued)
                  (figures stated in thousands of US dollars)


NOTE 3:   CASH AND DUE FROM BANKS

          The breakdown of this caption was as follows:

<TABLE>
<CAPTION>
                                                               3.31.03               12.31.02
                                                         --------------------- ---------------------
<S>                                                                      <C>                    <C>
Cash (Schedule G)                                                         306                   345
Banks - current accounts (Note 12)                                         30                    89
                                                         --------------------- ---------------------
Total                                                                     336                   434
                                                         ===================== =====================
</TABLE>


NOTE 4:   OTHER RECEIVABLES

          The breakdown of this caption was as follows:

<TABLE>
<CAPTION>
                                                               3.31.03               12.31.02
                                                         --------------------- ---------------------
<S>                                                                      <C>                    <C>
Current
Fiscal credits                                                             41                    22
Prepaid expenses                                                            2                     2
Sundry debtors (Schedule G)                                               266                    39
                                                         --------------------- ---------------------
Total                                                                     309                    63
                                                         ===================== =====================

                                                                3.31.03               12.31.02
                                                         --------------------- ---------------------
Non-current
Fiscal credits                                                             28                     2
Sundry debtors                                                              -                     -
                                                         --------------------- ---------------------
Total                                                                      28                     2
                                                         ===================== =====================

</TABLE>


NOTE 5:   SOCIAL SECURITY LIABILITIES



          The breakdown of this caption was as follows:
<TABLE>
<CAPTION>
                                                               3.31.03               12.31.02
                                                         --------------------- ---------------------
<S>                                                                      <C>                    <C>

Integrated Pension and Survivors' Benefit System                            2                     4
Health care plans                                                           1                     1
Directors' and syndics' fees accrual                                       25                    41
Provision for legal bonus                                                   4                     -
                                                         --------------------- ---------------------

Total                                                                      32                    46
                                                         ===================== =====================
</TABLE>



                                       84

<PAGE>

                         Grupo Financiero Galicia S.A.
         "A Company not Adhered to the Optional Regime for the Mandatory
               Public Offering of Shares envisaged in the By-laws"
                 Notes to the Financial Statements (Continued)
                  (figures stated in thousands of US dollars)



NOTE 6:   TAX LIABILITIES

          The breakdown of this caption was as follows:

<TABLE>
<CAPTION>
                                                               3.31.03               12.31.02
                                                         --------------------- ---------------------
<S>                                                                      <C>                    <C>
Current
Provision for income tax, net of fiscal credits                             -                   435
Income tax payable, net of fiscal credits                                 443                     -
Income tax withholdings to be deposited                                     2                     4
Provision for turnover tax                                                 11                     -
                                                         --------------------- ---------------------
Total                                                                     456                   439
                                                         ===================== =====================

Non-current                                                     3.31.03              12.31.02
                                                           ------------------- ---------------------
Deferred tax liability (Note 15)                                       15,901                18,166
Provision for minimum notional income tax                                  26                     -
                                                           ------------------- ---------------------
Total                                                                  15,927                18,166
                                                           =================== =====================
</TABLE>


NOTE 7:   OTHER DEBTS

          The breakdown of this caption was as follows:

<TABLE>
<CAPTION>
Current                                                        3.31.03               12.31.02
                                                         --------------------- ---------------------
<S>                                                                   <C>                 <C>
Sundry creditors (Note 12 and Schedule G)                                  54                   116
Expense accrual (Note 12 and Schedule G)                                  257                   348
Directors' qualification bond                                               1                     1
                                                         --------------------- ---------------------
Total                                                                     312                   465
                                                         ===================== =====================


Non-current                                                    3.31.03               12.31.02
                                                         --------------------- ---------------------
Directors' qualification bond                                               1                     1
                                                         --------------------- ---------------------
Total                                                                       1                     1
                                                         ===================== =====================
</TABLE>










                                       85

<PAGE>

                         Grupo Financiero Galicia S.A.
         "A Company not Adhered to the Optional Regime for the Mandatory
               Public Offering of Shares envisaged in the By-laws"
                 Notes to the Financial Statements (Continued)
                  (figures stated in thousands of US dollars)


NOTE 8:   CAPITAL STATUS

          As of March  31,  2003,  the  capital  status  of the  Company  was as
          follows:

<TABLE>
<CAPTION>
          ==================================================================================================
                                   Restated              Approved by                Date of registration
                         Face         in                                          with the Public Registry
             Capital     value     constant         Body             Date                of Commerce
                                   currency
          --------------------------------------------------------------------------------------------------
          <S>          <C>         <C>       <C>                  <C>                     <C>
          Subscribed,                          Extraordinary        05.16.00
          issued,                              shareholders'      07.24.00 and            08.09.00
          paid-in and  1,092,407   807,745        meeting           07.26.00
          registered                         Board of Directors
                         --------------------

          Total        1,092,407   807,745
          ==================================================================================================
</TABLE>


NOTE 9:   FINANCIAL AND HOLDING GAINS/(LOSSES)

          The breakdown of this caption was as follows:

<TABLE>
<CAPTION>
                                                                                3.31.03               3.31.02
                                                                          -------------------    -----------------
                  <S>                                                          <C>                      <C>
                  Generated by assets:
                  Interest
                     On time deposits (*)                                                136                    373
                     On special current account deposits                                   -                     39
                     On government securities                                              -                      1
                     On negotiable obligations (*)                                       120                      -
                     Other (*)                                                             3                      1
                  Loss of value of time deposits and special current
                  account deposits                                                         -               (54,839)
                  Loss on Indol contracts (*)                                            (7)                      -
                  Exchange (loss)/gain                                               (6,466)                 58,876
                  Loss on exposure to inflation                                        (534)               (18,468)
                                                                          -------------------     -----------------
                  Total generated by assets (loss)                                   (6,748)               (14,017)
                  Generated by liabilities:
                  Exchange gain/(loss)                                                    27                  (265)
                  Gain on exposure to inflation                                          167                    233
                                                                          ------------------      -----------------
                  Total generated by liabilities - Gain/(loss)                           194                   (32)
                                                                          =====================  ====================
                  Total financial losses                                             (6,554)               (14,049)
                                                                          =====================  ====================
</TABLE>

                  (*) Balances net of eliminations corresponding to intercompany
                  transactions (per Section 33 of Law 19550). See Note 12.



                                       86

<PAGE>

                         Grupo Financiero Galicia S.A.
         "A Company not Adhered to the Optional Regime for the Mandatory
               Public Offering of Shares envisaged in the By-laws"
                 Notes to the Financial Statements (Continued)
                  (figures stated in thousands of US dollars)



NOTE 10:  ESTIMATED  COLLECTION OR PAYMENT TERMS OF RECEIVABLES, INVESTMENTS AND
          DEBTS
                  As of March 31, 2003 the breakdown of receivables, investments
                  and debts according to their estimated collection or payment
                  terms was as follows:


<TABLE>
<CAPTION>
==================================================================================================
                                                               Social
                                       Other                  security       Tax         Other
                                    receivables  Investments liabilities liabilities  liabilities
--------------------------------------------------------------------------------------------------
<S>                                         <C>       <C>            <C>      <C>            <C>
Falling due within:
1st  Quarter                                  82      10,439          28          457         103
2nd Quarter                                  215         370           -            -         209
3rd Quarter                                    -         110           -            -           -
4th Quarter                                    -           -           -            -           -
After one year                                38      43,581           4       15,926           1
                                    --------------------------------------------------------------
Subtotal falling due                         335      54,500          32       16,383         313
                                    --------------------------------------------------------------
Without any set due date                       2     493,553           -            -           -
                                    --------------------------------------------------------------
Total                                        337     548,053          32       16,383         313
                                    --------------------------------------------------------------
Non-interest bearing                          71     494,912          32       16,383         313
At a fixed rate                              266      53,141           -            -           -
--------------------------------------------------------------------------------------------------
Total                                        337     548,053          32       16,383         313
==================================================================================================
</TABLE>

NOTE 11:  EQUITY INTERESTS IN OTHER COMPANIES

          The breakdown of long-term investments was as follows:

<TABLE>
<CAPTION>
====================================================================================================
                                          As of 3.31.03
----------------------------------------------------------------------------------------------------
                                                     Percentage of interest
                               Shares                        held in
   Issuing company    -----------------------        ----------------------    Principal     Face
                                                      Total       Possible      line of    value per
                      Type             Number        Capital        votes      business      share
----------------------------------------------------------------------------------------------------
<S>                    <C>            <C>            <C>          <C>         <C>           <C>
Banco de Galicia y      Ordinary                                              Financial
Buenos Aires S.A.       class "A"             101                             activities     0.0003
                        Ordinary
                        class "B"     438,599,602                                            0.0003
                      --------------------------------------------------------
                          Total       438,599,703    93.585537%    93.585542%
----------------------------------------------------------------------------------------------------
                                                                              Financial
                                                                                 and
                                                                              investment
Net Investment S.A.     Ordinary           10,500        87,50%        87,50% activities     0.0003
----------------------------------------------------------------------------------------------------
                        Ordinary
                        Class "A"          31,302                                            0.0003
Sudamericana Holding    Ordinary                                              Investment
S.A.                    Class "B"          41,735                             activities     0.0003
                      --------------------------------------------------------
                          Total            73,037    87.500899%    87.500899%
----------------------------------------------------------------------------------------------------
                                                                               Issuer of
                                                                               warehouse
                                                                               receipts
                                                                                  and
Galicia Warrants S.A.   Ordinary          175,000        87.50%        87.50%  warrants      0.0003
====================================================================================================
</TABLE>


                                       87

<PAGE>

                         Grupo Financiero Galicia S.A.
         "A Company not Adhered to the Optional Regime for the Mandatory
               Public Offering of Shares envisaged in the By-laws"
                 Notes to the Financial Statements (Continued)
                  (figures stated in thousands of US dollars)

NOTE 11:       (Continued)



<TABLE>
<CAPTION>
====================================================================================================
                                          As of 12.31.02
----------------------------------------------------------------------------------------------------
                                                     Percentage of interest
                               Shares                        held in
  Issuing company     -----------------------        ----------------------    Principal     Face
                                                      Total       Possible      line of    value per
                      Type             Number        Capital        votes      business      share
----------------------------------------------------------------------------------------------------
<S>                    <C>            <C>            <C>          <C>         <C>           <C>

                        Ordinary
                        class "A"             101                                            0.0003
Banco de Galicia y      Ordinary                                              Financial
Buenos Aires S.A.       class "B"     438,599,602                             activities     0.0003
                      --------------------------------------------------------
                          Total       438,599,703    93,585537%    93,585537%
----------------------------------------------------------------------------------------------------
                                                                              Financial
                                                                                 and
                                                                              investment
Net Investment S.A.     Ordinary           10,500        87,50%        87,50% activities     0.0003
----------------------------------------------------------------------------------------------------
                        Ordinary
                        Class "A"          31,302                                            0.0003
Sudamericana Holding    Ordinary                                              Investment
S.A.                    Class "B"          41,735                             activities     0.0003
                      --------------------------------------------------------
                          Total            73,037    87.500899%    87.500899%
----------------------------------------------------------------------------------------------------
                                                                               Issuer of
                                                                               warehouse
                                                                               receipts
                                                                                  and
Galicia Warrants S.A.   Ordinary          175,000        87.50%        87.50%  warrants      0.0003
====================================================================================================
</TABLE>

The financial condition and results of controlled companies were as follows:

<TABLE>
<CAPTION>
====================================================================================================
                                                                         Issuing company

                                                               -------------------------------------
                                                                Banco de Galicia
                     Financial condition                         y Buenos Aires    Net Investment
                        as of 3.31.03                                 S.A.               S.A.
----------------------------------------------------------------------------------------------------
<S>                                                                  <C>                 <C>

Assets                                                               6,994,624            3,019
Liabilities                                                          6,487,363               32
Shareholders' equity                                                   507,261            2,987
Result for the period of three months ended 3.31.03                   (13,453)            (391)
====================================================================================================
</TABLE>


<TABLE>
<CAPTION>
====================================================================================================
                                                                                    Issuing company
                                                                                 -------------------
             Financial condition                                                   Galicia Warrants
               as of 1.31.03(*)                                                          S.A.
----------------------------------------------------------------------------------------------------
<S>                                                                                      <C>
Assets                                                                                     2,001
Liabilities                                                                                  387
Shareholders' equity                                                                       1,614
Result for the period of three months ended 1.31.03                                        (134)
====================================================================================================
</TABLE>

(*) See Note 2.c.2.

                                       88

<PAGE>

                         Grupo Financiero Galicia S.A.
         "A Company not Adhered to the Optional Regime for the Mandatory
               Public Offering of Shares envisaged in the By-laws"
                 Notes to the Financial Statements (Continued)
                  (figures stated in thousands of US dollars)



NOTE 11:  (Continued)

<TABLE>
<CAPTION>
====================================================================================================
                                                                                    Issuing company
                                                                                 -------------------
             Financial condition                                                     Sudamericana
              as of 12.31.02(*)                                                      Holding S.A.
----------------------------------------------------------------------------------------------------
<S>                                                                                      <C>
Assets                                                                                     9,510
Liabilities                                                                                  337
Shareholders' equity                                                                       9,173
Result for the period of three months ended 12.31.02                                     (1,455)
====================================================================================================
</TABLE>

(*) See Note 2.c.2.

<TABLE>
<CAPTION>
====================================================================================================
                                                                          Issuing company
                                                                ------------------------------------
                                                                 Banco de Galicia
              Financial condition as of 12.31.02                  y Buenos Aires    Net Investment
                     Results as of 3.31.02                             S.A.              S.A.
----------------------------------------------------------------------------------------------------
<S>                                                                   <C>               <C>
Assets                                                                7,413,997          2,771
Liabilities                                                           6,893,285             29
Shareholders' equity                                                    520,712          2,742
Result for the period of three months ended 3.31.02                   (703,283)          (150)
====================================================================================================
</TABLE>


<TABLE>
<CAPTION>
====================================================================================================
                                                                                   Issuing company
                                                                                 -------------------
      Financial condition as of 9.30.02                                             Sudamericana
            Results as of 12.31.01                                                  Holding S.A.
----------------------------------------------------------------------------------------------------
<S>                                                                                      <C>
Assets                                                                                    10,908
Liabilities                                                                                  278
Shareholders' equity                                                                      10,630
Result for the period of three months ended 12.31.01                                       1,520
====================================================================================================
</TABLE>

<TABLE>
<CAPTION>
====================================================================================================
                                                                                   Issuing company
                                                                                 -------------------
      Financial condition as of 10.31.02                                           Galicia Warrants
            Results as of 1.31.02                                                         S.A.
----------------------------------------------------------------------------------------------------
<S>                                                                                      <C>
Assets                                                                                     2,017
Liabilities                                                                                  536
Shareholders' equity                                                                       1,481
Result for the period of twelve months ended 1.31.02                                          80
====================================================================================================
</TABLE>

                                       89

<PAGE>

                         Grupo Financiero Galicia S.A.
         "A Company not Adhered to the Optional Regime for the Mandatory
               Public Offering of Shares envisaged in the By-laws"
                 Notes to the Financial Statements (Continued)
                  (figures stated in thousands of US dollars)


NOTE 12   INTERCOMPANY BALANCES AND TRANSACTIONS - SECTION 33 OF LAW 19550
          The financial statements include the following significant balances of
          the transactions carried out with Banco de Galicia y Buenos Aires S.A.
          and its subsidiaries:
<TABLE>
<CAPTION>
Banco de Galicia y Buenos Aires S.A.                          3.31.03                12.31.02
                                                       ----------------------- ---------------------
<S>                                                                    <C>                    <C>
ASSETS
Cash and due from banks - current accounts
(Note 3)                                                                   29                    88
Investments - time deposits (Schedules C)                               4,992                 6,658
                                                       ----------------------- ---------------------
Total                                                                   5,021                 6,746
                                                       ======================= =====================

LIABILITIES
Other liabilities - expense accrual (Note 7)                               41                    41
                                                       ----------------------- ---------------------
Total                                                                      41                    41
                                                       ======================= =====================

INCOME                                                        3.31.03                3.31.02
                                                       ----------------------- ---------------------

Financial income - interest on time deposits (Note 9)                       -                   110
Financial income - interest on special current
account  deposits (Note 9)                                                263                     -
                                                       ----------------------- ---------------------
Total                                                                     263                   110
                                                       ======================= =====================

EXPENSES
Administrative expenses (Schedule H)
  Leasing of brand                                                         60                    78
  Bank charges                                                              -                     1
  General expenses                                                          2                     8
                                                       ----------------------- ---------------------
Total                                                                      62                    87
                                                       ======================= =====================

Banco Galicia Uruguay S.A.                                    3.31.03                12.31.02
                                                       ----------------------- ---------------------
ASSETS
Investments - special current account deposits
(Schedules C and G)                                                     1,359                 1,556
Investments - negotiable obligations (Schedules  C
and G)                                                                 44,061                50,333
                                                       ----------------------- ---------------------
Total                                                                  45,420                51,889
                                                       ======================= =====================

INCOME                                                       3.31.03                3.31.02
                                                       ----------------------- ---------------------

Financial income - interest on time deposits (Note 9)                       -                    31
Financial   income  -  interest  on  special  current
account deposits (Note 9)                                                   -                   367
Financial    income   -   interest   on    negotiable
obligations (Note 9)                                                      120                     -
                                                       ----------------------- ---------------------
Total                                                                     120                   398
                                                       ======================= =====================
</TABLE>

                                       90

<PAGE>

                         Grupo Financiero Galicia S.A.
         "A Company not Adhered to the Optional Regime for the Mandatory
               Public Offering of Shares envisaged in the By-laws"
                 Notes to the Financial Statements (Continued)
                  (figures stated in thousands of US dollars)


NOTE 12:   (Continued)




Galicia Valores S.A. Sociedad de Bolsa

<TABLE>
<CAPTION>

                                                               3.31.03               12.31.02
                                                         --------------------- ---------------------
<S>                                                         <C>                      <C>
LIABILITIES
Other liabilities - sundry creditors (Note 7)                               7                     -
                                                         --------------------- ---------------------
Total                                                                       7                     -
                                                         ===================== =====================

EXPENSES                                                       3.31.03               3.31.02
                                                         --------------------- ---------------------

Financial expenses - Loss on Indol (Note 9)                                 1                     -
                                                         --------------------- ---------------------
Total                                                                       1                     -
                                                         ===================== =====================



Galicia Warrants S.A.
                                                               3.31.03               3.31.02
                                                         --------------------- ---------------------
INCOME

Financial income - Interest earned (Note 9)                                 -                     1
                                                         --------------------- ---------------------
Total                                                                       -                     1
                                                         ===================== =====================


B2Agro S.A.
                                                               3.31.03               12.31.02
                                                         --------------------- ---------------------
ASSETS
Other receivables - sundry debtors (Note 4)                               266                    39
                                                         --------------------- ---------------------
Total                                                                     266                    39
                                                         ===================== =====================

INCOME                                                         3.31.03               3.31.02
                                                         --------------------- ---------------------

Financial results - interest earned (Note 9)                                4                     -
                                                         --------------------- ---------------------
Total                                                                       4                     -
                                                         ===================== =====================
</TABLE>





NOTE 13:  RESTRICTIONS IMPOSED ON THE DISTRIBUTION OF PROFITS

          At March 31, 2003 there are no restrictions on the distribution of the
          Company's  retained  earnings  except  for  those  established  by the
          Argentine Commercial Companies Law and Resolution Nro. 368/2001 of the
          National  Securities  Commission insofar as concerns the setting up of
          the Legal  Reserve with 5% of the net income for the year until 20% of
          the  capital  stock  is  reached.  (See  Note  10 to the  consolidated
          financial    statements).

                                       91

<PAGE>

                         Grupo Financiero Galicia S.A.
         "A Company not Adhered to the Optional Regime for the Mandatory
               Public Offering of Shares envisaged in the By-laws"
                 Notes to the Financial Statements (Continued)
                  (figures stated in thousands of US dollars)

NOTE 14:  RESTRICTED ASSETS

          As of March 31, 2003,  the Company had deposited US$ 9 with Mercado de
          Valores  de  Buenos  Aires  S.A.  in  guarantee  of the  "INDOL  Index
          Contracts"   in  force   at  that   date.



NOTE 15:  INCOME TAX - DEFERRED TAX

          Income tax has been determined according to the deferred tax method.
          The  following  tables show the changes and  breakdown of deferred tax
          assets and liabilities:
          Deferred tax assets:

                                     Other receivables        Total
Opening balances                                      -                  -
Charge to results                                     2                  2
Closing balances                                      2                  2

          Deferred tax liabilities:

                         Fixed assets       Investments           Total
Opening balances                       4             18,004            18,008
Charge to results                      -            (2,107)           (2,107)
Closing balances                       4             15,897            15,901



NOTE 16:  EARNINGS PER SHARE

          Below is a breakdown  of the  Earnings  per share as of March 31, 2003
          and 2002:
<TABLE>
<CAPTION>
                                                          31.03.03               31.03.02
                                                    --------------------  ---------------------
<S>                                                       <C>                    <C>
(Loss) for the period                                       (19,664)              (220,008)
Number of subscribed and paid-up ordinary shares          1,092,407              1,092,407

Earning per ordinary share:
 - Basic                                                  (0,02)                    (0,20)
 - Diluted                                                (0,02)                    (0,20)

</TABLE>

                                       92

<PAGE>

                         Grupo Financiero Galicia S.A.
    "A Company which has not adhered to the Optional Regime for the Mandatory
               Public Offering of Shares envisaged in the By-laws"
                 Notes to the Financial Statements (Continued)
                  (figures stated in thousands of US dollars)


NOTE 17:  SUBSEQUENT EVENTS


          After March 31, 2003,  the Company made new capital  contributions  in
          Net Investment S.A. for US$ 367.

          The Ordinary and Extraordinary  Meeting of Shareholders of the Company
          held on April  23,  2003  resolved  to absorb  with the  Discretionary
          Reserve balance of US$ 165,215, a portion of the Accumulated Losses as
          of December 31, 2002,  and to carry forward the  remaining  losses for
          US$ 326,364.

          That Meeting of  Shareholders  also approved the amendment of articles
          one, thirteen, fourteen and twenty two of the Company's By-laws, which
          at the  date of  issue  of  these  financial  statements  was  pending
          registration  with the Public  Registry of Commerce.  The amendment to
          article one of those  By-laws  consists of the Company not adhering to
          the  Optional  Regime  for the  Mandatory  Public  Offering  of Shares
          provided for in its By-laws.

                                       93

<PAGE>

Grupo Financiero Galicia S.A.
"Corporation which has not adhered to the Optional System for the Mandatory
Acquisition of Shares in a Public Offering"
Fixed assets
For the period of three months
commenced January 1, 2003 and ended March 31, 2003.
In comparative format with the fiscal year ended December 31, 2002.
(figures stated in thousands of US dollars)


                                                                      Schedule A

<TABLE>
<CAPTION>
========================================================================================

                                            ORIGINAL VALUES
                           -------------------------------------------------


     Principal account                         At
                                           beginning                          At end of
                                            of year     Increases   Deletions   period
----------------------------------------------------------------------------   ---------
<S>                                         <C>             <C>        <C>      <C>
  Real estate                               1,093           -           -       1,093
----------------------------------------------------------------------------------------
  Vehicles                                     25           -           -          25
----------------------------------------------------------------------------------------
  Hardware and software                       173           1           -         174
----------------------------------------------------------------------------------------
  Furniture and facilities                     68           -           -          68
----------------------------------------------------------------------------------------
  Total as of 3.31.03                       1,359           1           -       1,360
========================================================================================
</TABLE>

<TABLE>
<CAPTION>
==================================================================================================================


                                                  DEPRECIATION
                           ------------------------------------------------------------
                                                       For the period
     Principal account      Accumulated               ----------------    Accumulated    Net book      Net book
                           at beginning               Rate                 at end of     value at      value at
                              of year     Deletions     %      Amount       period       3.31.03       12.31.02
------------------------------------------------------------------------------------------------------------------
<S>                                 <C>          <C>  <C>             <C>         <C>         <C>           <C>
  Real estate                        22           -    2              5            27         1,066         1,071
------------------------------------------------------------------------------------------------------------------
  Vehicles                            7           -   20              1             8            17            18
------------------------------------------------------------------------------------------------------------------
  Hardware and software              66           -   20             10            76            98           106
------------------------------------------------------------------------------------------------------------------
  Furniture and facilities           27           -   20              3            30            38            42
------------------------------------------------------------------------------------------------------------------
  Total as of 3.31.03               122           -                  19           141         1,219         1,237
==================================================================================================================
</TABLE>

                                       94

<PAGE>

Grupo Financiero Galicia S.A.
"Corporation which has not adhered to the Optional System for the Mandatory
Acquisition of Shares in a Public Offering"
Intangible assets
For the period of three months
commenced January 1, 2003 and ended March 31, 2003.
In comparative format with the fiscal year ended December 31, 2002.
(figures stated in thousands of US dollars)





                                                                      Schedule B



<TABLE>
<CAPTION>
================================================================================
                                            ORIGINAL VALUES
                            ----------------------------------------------------
                            At beginning of                            At end of
  Principal account               year       Increases   Deletions     period
-----------------------     ---------------  ---------   ---------     ---------
<S>                                <C>          <C>         <C>            <C>
Logotype                            19          -          (19)             -

Organization expenses              294          -         (294)             -

Goodwill                         6,733          -             -         6,733

Total as of 3.31.03              7,046          -         (313)         6,733
================================================================================
</TABLE>


<TABLE>
<CAPTION>
====================================================================================================================================
                                               AMORTIZATION
                            ------------------------------------------------------
                            Accumulated                                              Valuation
                            at beginning                            Accumulated at   allowance    Net book value   Net book value at
  Principal account           of year    Deletions Rate %   Amount  end of period   (Schedule E)   at 3.31.03         12.31.02
-----------------------     ------------ --------- ------   ------  --------------  ------------  ---------------  -----------------
<S>                           <C>         <C>       <C>       <C>       <C>          <C>             <C>              <C>
Logotype                          8         (8)     20           -             -             -           -               10

Organization expenses           138       (138)     20           -             -             -           -              157

Goodwill                      2,300           -     20         337       2,637       (1,007)         3,089            4,433

Total as of 3.31.03           2,446       (146)                337       2,637       (1,007)         3,089            4,600
====================================================================================================================================

</TABLE>

                                       95

<PAGE>

Grupo Financiero Galicia S.A.
"Corporation which has not adhered to the Optional System for the Mandatory
Acquisition of Shares in a Public Offering"
Statement of Financial Condition as of March 31, 2003 and December 31, 2002
(figures stated in thousands of US dollars)

                                                                     Schedule C
<TABLE>
<CAPTION>
==============================================================================================================


          Issuance and characteristics of the securities                 Book Value           Book Value
                                                                       as of 3.31.03        as of 12.31.02
--------------------------------------------------------------------------------------------------------------
<S>                                                                              <C>                 <C>
Current  investments (*)
Special current account deposits (Note 12 and Schedule G)                         1,359               1,556

Time deposits (Note 12 and Schedule G)                                            9,080              10,258
Negotiable Obligations (Note 12 and Schedule G)                                     480                 419
                                                                   -------------------------------------------
Total current investments                                                        10,919              12,233
==============================================================================================================
</TABLE>

(*) include accrued interest.

                                       96
<PAGE>

Grupo Financiero Galicia S.A.
"Corporation which has not adhered to the Optional System for the Mandatory
Acquisition of Shares in a Public Offering"
Investments
Equity Interests in Other Companies and Other Investments
Statement of Financial Condition as of March 31, 2003 and December 31, 2002
(figures stated in thousands of US dollars)

                                                             Schedule C (contd.)

<TABLE>
<CAPTION>
======================================================================================================================

    Issuance and characteristics of the               Class             Face Value       Number         Acquisition
                securities                                                                                 cost


-------------------------------------------- ------------------------- ------------- ---------------- ----------------
<S>                                          <C>                         <C>            <C>                  <C>
Non-current investments
Negotiable Obligations (Note 12 and
Schedule G)

Banco de Galicia y Buenos Aires S.A.         Ordinary class "A"           0.0003                 101
                                             Ordinary class "B"           0.0003         438,599,602
                                                                                     ---------------- ----------------
                                                                                         438,599,703          862,878

Net Investment S.A.                          Ordinary                     0.0003              10,500                8
                                             Irrevocable
                                             contributions                                                      6,726


Sudamericana Holding S.A.                    Ordinary class "A"           0.0003              31,302
                                             Ordinary class "B"           0.0003              41,735
                                                                                     ---------------- ----------------
                                                                                              73,037           11,075
                                             Irrevocable
                                             contributions                                                      3,328

Galicia Warrants S.A.                        Ordinary                     0.0003             175,000            3,969





                                             ------------------------- ------------- ---------------- ----------------
Total Non-current investments                                                                                 887,984

</TABLE>

<TABLE>
<CAPTION>
=============================================================================================================


    Issuance and characteristics of the       Quotation     Equity value      Book Value       Book Value
                securities                    per share     as of 3.31.03    as of 3.31.03   as of 12.31.02
                                                as of
                                               3.31.03

-------------------------------------------- ------------- ---------------- ---------------- ----------------
<S>                                           <C>            <C>                  <C>              <C>
Non-current investments
Negotiable  Obligations (Note 12 and                                              43,581(*)        49,914(*)
Schedule  G)

Banco de Galicia y Buenos Aires S.A.
                                                  0,00064

                                                                   481,217          481,217          487,311

Net Investment S.A.


                                                                     2,870            2,870            2,577


Sudamericana Holding S.A.


                                                                     8,050            8,050            9,324



Galicia Warrants S.A.                                                1,416            1,416            1,300





                                             ------------- ---------------- ---------------- ----------------
Total Non-current investments                                      493,553          537,134          550,426
=============================================================================================================
</TABLE>

XXXXX
<TABLE>
<CAPTION>
===================================================================================================================================
                                                                                 INFORMATION ON THE ISSUING
                                            ---------------------------------------------------------------------------------------
                                                                           LATEST FINANCIAL STATEMENTS (Note 11)
                                            ---------------------------------------------------------------------------------------
                                                                                                                         %
                                                                                                                    of equity held
    Issuance and characteristics        Principal line of               Capital        Net          Shareholders'    in the capital
          of the securities                 business          Date       Stock      income/(loss)      equity            stock
----------------------------------- ---------------------- ------------ ---------- ---------------- ---------------- --------------
<S>                                       <C>                     <C>              <C>        <C>                <C>          <C>
Non-current investments
Negotiable Obligations  (Note  12
and Schedule  G)

Banco de Galicia y Buenos
Aires S.A.

                                        Financial activities     3.31.03      157,269   (13,453)(**)         507,261     93.585537%

Net Investment S.A.                     Financial and
                                        investment activities

                                                                 3.31.03            4       (391)(**)          2,987         87,50%


Sudamericana Holding S.A.




                                        Investment activities    12.31.02          28     (2,463)(***)         9,173     87,500899%

Galicia Warrants S.A.                   Issuer of warehouse
                                        receipts and warrants

                                                                 01.31.03          67        (66)(#)           1,614         87.50%


                                        ---------------------- ------------- --------- ---------------- --------------- -----------
Total Non-current investments
======================================= ====================== ============= ========= ================ =============== ===========


</TABLE>


(*) includes accrued interest.
(**) for the period of three months ended March 31, 2003.
(***) for the period of six months ended December 31, 2002.
(#) for the period of nine months ended January 31, 2003.











                                       97

<PAGE>


                            Grupo Financiero Galicia S.A.
  "Corporation which has not adhered to the Optional System for the Mandatory
                  Acquisition of Shares in a Public Offering"
                           Allowances and Provisions
                            For the period of three months
               commenced January 1, 2003 and ended March 31, 2003.
      In comparative format with the fiscal year ended December 31, 2002.
                  (figures stated in thousands of US dollars)

                                                                      Schedule E
<TABLE>
<CAPTION>

====================================================================================================================
              Captions                   Balance at           Increases           Decreases      Balance at end of
                                      beginning of year                                                period
--------------------------------------------------------------------------------------------------------------------
<S>                                     <C>                      <C>                 <C>                 <C>
Allowances:

Valuation   allowance  -  Intangible
assets (Schedule B)                                   -               1,007                   -              1,007
--------------------------------------------------------------------------------------------------------------------
Total as of 3.31.03                                   -               1,007                   -              1,007
--------------------------------------------------------------------------------------------------------------------
Total as of 12.31.02                                  -              55,769            (55,769)                  -
--------------------------------------------------------------------------------------------------------------------
Provisions:                                           -
--------------------------------------------------------------------------------------------------------------------
Total as of 3.31.03                                   -                   -                   -                  -
--------------------------------------------------------------------------------------------------------------------
Total as of 12.31.02                                  -              13,540            (13,540)                  -
====================================================================================================================

</TABLE>









                                       98

<PAGE>



                         Grupo Financiero Galicia S.A.
  "Corporation which has not adhered to the Optional System for the Mandatory
                   Acquisition of Shares in a Public Offering"
                    Foreign Currency Assets and Liabilities
  Statement of Financial Condition as of March 31, 2003 and December 31, 2002
                  (figures stated in thousands of US dollars)

                                                                     Schedule G

<TABLE>
<CAPTION>
=======================================================================================================================
                                                                      Amount in                          Amount in
                                       Amount and type                Argentine     Amount and type      Argentine
                                         of foreign                   currency        of foreign         currency
             Captions                     currency     Quotation      at 3.31.03        currency        at 12.31.02
-----------------------------------------------------------------------------------------------------------------------
<S>                                          <C>            <C>            <C>            <C>                 <C>
ASSETS
CURRENT ASSETS
Cash and due from banks
Cash                                   US$           -    2.98                    -  US$         303              999
Imprest fund                           US$         314    2.98                  936  US$           6               20
Investments
Special current account deposits       US$       1,406    2.98                4,190  US$       1,406            4,638
Time deposits                          US$       1,941    2.98                5,784  US$       1,336            4,408
Negotiable obligations                             497    2.98                1,481              379            1,249
Other receivables
Sundry debtors                         US$         276    2.98                  822  US$          35              117
                                                                   -----------------                  -----------------
Total Current Assets                                                         13,213                            11,431
                                                                                                      -----------------
                                                                   -----------------
NON-CURRENT ASSETS
Investments
Negotiable obligations                 US$      45,094    2.98              134,380  US$      45,094          148,744
                                                                   -----------------                  -----------------
Total Non-current Assets                                                    134,380                           148,744
                                                                                                      -----------------
                                                                   -----------------
Total Assets                                                                147,593                           160,175
                                                                   =================                  =================
LIABILITIES
CURRENT LIABILITIES
Other debts
Sundry creditors                       US$          28    2.98                   84  US$          85              588
Expense accrual                        US$         125    2.98                  372  US$         189              643
                                                                                                      -----------------
                                                                   -----------------                  -----------------
Total Current Liabilities                                                       456                             1,231
                                                                   -----------------                  -----------------
                                                                                                      -----------------
Total Liabilities                                                               456                             1,231
=======================================================================================================================

</TABLE>



















<PAGE>


                         Grupo Financiero Galicia S.A.
   "Corporation which has not adhered to the Optional System for the Mandatory
                   Acquisition of Shares in a Public Offering"
         Information required by Section 64, subsection b) of Law 19550
                         For the period of three months
              commenced January 1, 2003 and ended March 31, 2003.
                                ended March 31, 2003
    In comparative format with the same period of the previous fiscal year.
                  (figures stated in thousands of US dollars)

                                                                      Schedule H

<TABLE>
<CAPTION>

=======================================================================================================================
                            Captions                                Total as of     Administrative      Total as of
                                                                      3.31.03          expenses           3.31.02
-----------------------------------------------------------------------------------------------------------------------
<S>                                                                   <C>                 <C>                 <C>
Salaries and social security charges                                            64                64               105
Services to the staff                                                            1                 1                 3
Directors' and syndics' fees                                                     5                 5                19
Fees for services                                                              131               131               578
Fixed asset depreciation                                                        19                19                15
Intangible asset amortization                                                  337               337               393
Leasing of brand (*)                                                             4                 4                 5
Stationery and office supplies                                                   2                 2                 1
Condominium Expenses                                                             5                 5                 2
Entertainment, transportation and per diem                                       1                 1                 1
Vehicles expenses                                                                1                 1                 2
Insurance                                                                        -                 -                10
Electricity and communications                                                   5                 5                 6
Taxes, rates and assessments and contributions                                  53                53                48
Bank charges (*)                                                                 -                 -                 1
General expenses (*)                                                            44                44                34
                                                                 ------------------------------------------------------
Total                                                                          672               672             1,223
=======================================================================================================================

(*) Balances net of eliminations corresponding to intercompany transactions (per Section 33 of Law 19550). See Note 12 to
the financial statements.

</TABLE>











                                      100

<PAGE>


                          Grupo Financiero Galicia S.A.
   "Corporation which has not adhered to the Optional System for the Mandatory
                   Acquisition of Shares in a Public Offering"
    Information required in addition to the Notes to the Financial Statements
                         For the period of three months
               commenced January 1, 2003 and ended March 31, 2003.
                         Presented in comparative format
                   (figures stated in thousands of US dollars)

NOTE 1:           LEGAL SYSTEMS
------            -------------

                  There are no significant specific legal systems entailing the
                  lapsing of contingent benefits envisaged by those regulations
                  or their rebirth.


NOTE 2:           CLASSIFICATION OF RECEIVABLES AND DEBTS
------            ---------------------------------------

                  2.1. Receivables: See Note 10 to the financial statements.

                  2.2. Debts: See Note 10 to the financial statements.

NOTE 3:           CLASSIFICATION OF RECEIVABLES AND DEBTS ACCORDING TO THEIR
------            ----------------------------------------------------------
                  FINANCIAL EFFECTS
                  -----------------

                  3.1. Receivables: See Notes 2.a., 2.b. and 10 and Schedule G
                  to the financial statements.

                  3.2. Debts: See Notes 2.a., 2.b. and 10 and Schedule G to the
                  financial statements.


NOTE 4:           EQUITY INTERESTS IN OTHER COMPANIES - SECTION 33 OF LAW 19550
------            -------------------------------------------------------------

                  See Notes 10, 11 and 12 and Schedule C to the financial
                  statements.


NOTE 5:           RECEIVABLES FROM OR LOANS GRANTED TO DIRECTORS OR SYNDICS
------            ---------------------------------------------------------

                  As of March 31, 2003 and December 31, 2002 there were no
                  receivables from or loans granted to directors or syndics or
                  their relatives up to the second degree
                  inclusive.



                                      101


                         Grupo Financiero Galicia S.A.
  "Corporation which has not adhered to the Optional System for the Mandatory
                   Acquisition of Shares in a Public Offering"
   Information required in addition to the Notes to the Financial Statements
                                  (Continued)
                  (figures stated in thousands of US dollars)


NOTE 6:           PHYSICAL INVENTORY OF INVENTORIES
------            ---------------------------------

                  As of March 31, 2003 and December 31, 2002 the Company did
                  not have any inventories.

NOTE 7:           FIXED ASSETS
------            ------------

                  See Schedule A to the financial statements.

                  a) As of March 31, 2003 and December 31, 2002 the Company did
                     not have any technically appraised fixed
                     assets.

                  b) As of March 31, 2003 and December 31, 2002 the Company did
                     not have any obsolete fixed assets which have a carrying
                     value.

                  c) As of March 31, 2003 and December 31, 2002, the criterion
                     followed by the Company for determining the recoverable
                     value of its fixed assets consisted of using their value
                     to the business, based on the possibility of absorbing
                     future depreciation charges with the profits reported by
                     it.


NOTE 8:           INSURANCE
------            ---------

                  As of March 31, 2003 and December 31, 2002, the breakdown of
                  insurance policies taken out by the Company for its fixed
                  assets was as follows:
                   <TABLE>
                   <CAPTION>
                  ================ ========================================= ============ ============ =============
                  Insured assets                                               Insured    Book Value    Book Value
                                                Risks covered                  amount        as of        as of
                                                                                            3.31.03      12.31.02
                  ---------------- ----------------------------------------- ------------ ------------ -------------
                       <S>                    <C>                              <C>          <C>            <C>
                     Vehicles      Third party  liability,  fire, theft and
                                   total loss.                                   26           17            18
                  ================ ========================================= ============ ============ =============
</TABLE>


NOTE 9:           ALLOWANCES AND PROVISIONS
------            -------------------------

                  See Schedule E  to the financial statements.


                                      102

<PAGE>

                         Grupo Financiero Galicia S.A.
  "Corporation which has not adhered to the Optional System for the Mandatory
                   Acquisition of Shares in a Public Offering"
   Information required in addition to the Notes to the Financial Statements
                                  (Continued)
                  (figures stated in thousands of US dollars)


NOTE 10:          CONTINGENCIES
-------           -------------

                  As of March 31, 2003 and December 31, 2002, there were no
                  contingencies highly likely to occur which have not been given
                  accounting recognition.


NOTE 11:          IRREVOCABLE ADVANCES TOWARDS FUTURE SHARE SUBSCRIPTIONS
-------           -------------------------------------------------------

                  As of March 31, 2003 and December 31, 2002, there were no
                  irrevocable contributions towards future share
                  subscriptions.

NOTE 12:          DIVIDENDS ON PREFERRED SHARES
-------           -----------------------------

                  As of March 31, 2003 and December 31, 2002, there were no
                  cumulative unpaid dividends on preferred
                  shares.


NOTE 13:          LEGAL RESERVE
-------           -------------

                  See Note 13   to the financial statements.






                                      103

<PAGE>


                         Grupo Financiero Galicia S.A.
  "Corporation which has not adhered to the Optional System for the Mandatory
                   Acquisition of Shares in a Public Offering"
       Supplementary and Explanatory Statement by the Board of Directors
            For the period of three months commenced January 1, 2003
                           and ended March 31, 2003.
                        Presented in comparative format
                  (figures stated in thousands of US dollars)

As called for by the norms regarding accounting documentation of the Cordoba
Stock Exchange Regulations, the Board of Directors takes pleasure in submitting
the following supplementary and explanatory information.

A. Current Assets:
   --------------

     a)   Receivables:
          1)   See Note 10 to the financial statements.
          2)   See Notes 4 and 10 to the financial statements.
          3)   As of March 31,  2003 and  December  31, 2002 the Company had not
               set up any allowances or provisions.

     b)   Inventories:
          As of March 31, 2003 and December 31, 2002, the Company did not have
          any inventories.

B. Non- Current Assets:
   -------------------

     a)   Receivables:
          As of  March  31,  2003 and  December  31,  2002 the  Company  had
          not set up any allowances or provisions.

     b)   Inventories:
          As of March 31, 2003 and December 31, 2002, the Company did
          not have any inventories.

     c)   Investments:
          See Note 11 and Schedule C to the financial statements.

     d)   Fixed assets:
          1)   As of March 31, 2003 and December  31, 2002,  the Company did not
               have any technically appraised fixed assets.
          2)   As of March 31, 2003 and December  31, 2002,  the Company did not
               have any obsolete fixed assets which have a carrying value.


                                      104
<PAGE>


                         Grupo Financiero Galicia S.A.
   "Corporation which has not adhered to the Optional System for the Mandatory
                   Acquisition of Shares in a Public Offering"
       Supplementary and Explanatory Statement by the Board of Directors
                                   (Continued)
                  (figures stated in thousands of US dollars)

     e)   Intangible assets:
          1)   See Note 2.e. and Schedules B and E to the financial statements.
          2)   As of March  31,  2003  and  December  31,  2002,  there  were
               no deferred charges.

C.   Current Liabilities:

     a)   Debts:
          1)   See Note 10 to the financial statements.
          2)   See Note 10 to the financial statements.

D.   Allowances and provisions:

          See Schedule E to the financial statements.

E. Foreign Currency Assets and Liabilities:

          See Note 2.b. and Schedule G to the financial statements.

F. Shareholders' Equity:

          1)   As of March 31, 2003 and  December 31,  2002,  the  Shareholders'
               Equity did not include the  Irrevocable  Advances  towards Future
               Share Issues account.
          2)   As of March 31, 2003 and December  31, 2002,  the Company had not
               set up any technical  appraisal reserve;  nor has it reversed any
               reserve of that kind.

G.   Miscellaneous:

          1)   The Company is engaged in financial and investment activities, so
               the  restrictions  of Section 31 of Law 19550 do not apply to its
               equity interests in other companies.
          2)   As of March 31, 2003 and December 31, 2002, the Company  recorded
               receivables for operations  conducted with related  companies for
               US$ 276 and US$ 35, respectively.
          3)   As of  March  31,  2003  and  December  31,  2002  there  were no
               receivables  due from or loans granted to directors or syndics or
               members of the  surveillance  committee or their  relatives up to
               the second degree inclusive.
          4)   See Notes 10 and 12 to the financial statements.


                                      105
<PAGE>

                         Grupo Financiero Galicia S.A.
  "Corporation which has not adhered to the Optional System for the Mandatory
                   Acquisition of Shares in a Public Offering"
       Supplementary and Explanatory Statement by the Board of Directors
                                  (Continued)
                  (figures stated in thousands of US dollars)


          5)   As of March 31, 2003 and  December  31,  2002,  the  breakdown of
               insurance  policies taken out by the Company for its fixed assets
               was as follows:

<TABLE>
<CAPTION>

                  ================ ========================================= ============ ============ =============
                  Insured assets                                               Insured    Book Value    Book Value
                                                Risks covered                  amount        as of        as of
                                                                                            3.31.03      12.31.02
                  ---------------- ----------------------------------------- ------------ ------------ -------------
                  <S>              <C>                                         <C>         <C>            <C>
                     Vehicles      Third party  liability,  fire, theft and
                                   total loss.                                   26           17            18
                  ================ ========================================= ============ ============ =============
</TABLE>

               6)   As of March 31, 2003 and December  31,  2002,  there were no
                    contingencies  highly  likely to occur  which  have not been
                    given accounting recognition.

               7)   As of March 31, 2003 and December 31, 2002,  the Company did
                    not  have  any  receivables  or  debts  including   implicit
                    interest or index adjustments.

The Company has complied with the requirements of Section 65 of Law 19550 in
these financial statements.

Autonomous City of Buenos Aires, May 30, 2003.

(signed) Antonio Roberto Garces
Chairman

                                      106
<PAGE>



                         Grupo Financiero Galicia S.A.
  "Corporation which has not adhered to the Optional System for the Mandatory
                   Acquisition of Shares in a Public Offering"
                Informative Review as of March 31, 2003 and 2002
                  (figures stated in thousands of US dollars)

The loss for the period of three  months  ended March 31,  2003  reported by the
Company  amounts to US$ 19,664;  it was generated by the valuation of the equity
interest  in Banco de Galicia y Buenos  Aires  S.A.,  which is Grupo  Financiero
Galicia S.A.'s principal source of income, as shown in its Income Statement.

Grupo Financiero  Galicia S.A.'s strategy is to become a leading company engaged
in providing comprehensive financial services and, at the same time, continue to
strengthen Banco de Galicia y Buenos Aires S.A.'s position as one of the leading
companies in Argentina.  This strategy will be carried out by supplementing  the
operations and business  conducted by Banco de Galicia through equity  interests
in companies  and  undertakings,  either  existing or to be created,  engaged in
financial activities as they are understood in the modern economy.

The Ordinary and  Extraordinary  Meeting of Shareholders  held on April 23, 2003
resolved to exercise the option  envisaged  in Section 24 of Decree No.  677/01,
the Company not  therefore  adhering to the  Optional  Regime for the  Mandatory
Public Offering of Shares.  It also approved the absorption of the total loss of
US$  487,329  for the fiscal year ended  December  31,  2002 which,  restated in
currency  of  February  2003  amounted to US$  491,579,  with the  Discretionary
Reserve  in the  amount  of US$  163,787  which,  restated  at that date was US$
165,215, and to carry forward the remaining loss of US$ 323,542 which,  restated
at that date, was US$ 326,364.

In July 2002, the Company  received a letter from NASDAQ stating that the NASDAQ
Staff  Determination had noted the lack of an opinion in the Auditors' Report on
the financial  statements  for the fiscal year ended  December 31, 2001 added to
the F-20 Form of the  Securities & Exchange  Commission,  and that the financial
statements  had not been prepared  observing the Generally  Accepted  Accounting
Principles in the United States of America (US GAAP).  In view of this, in order
to prevent the American  Depositary  Shares (ADR) from being  delisted  from the
NASDAQ National Market,  Grupo Financiero  Galicia S.A.,  enforcing its right as
envisaged  by the NASDAQ  Market  Regulations,  requested  a hearing  before the
NASDAQ Listing  Qualifications Panel to review the decision issued by the NASDAQ
Staff Determination.  This automatically suspended the delisting from the NASDAQ
National  Market  until a final  decision  is  issued.  As  envisaged  by NASDAQ
regulations,  the  mentioned  hearing took place on August 8, 2002, at which the
representatives  of the  Company  stated  that the  difficulties  caused  by the
economic crisis affecting Argentina had prevented the Company from preparing the
information required by current regulations, so they requested that an extension
be granted to be able to comply with all the listing requirements. Subsequently,
the representatives requested that



                                      107
<PAGE>

                         Grupo Financiero Galicia S.A.

 "Corporation which has not adhered to the Optional System for the Mandatory
                   Acquisition of Shares in a Public Offering"
                Informative Review as of March 31, 2003 and 2002
                  (figures stated in thousands of US dollars)

the  Company's  listed ADRs be  transferred  to NASDAQ  SmallCap  Market,  which
operates  according to the same regulations and uses the same electronic  market
makers system.

On September 9, 2002, the Company received an answer from NASDAQ,  informing the
Company that the  extension  to present the Opinion of the External  Auditors on
the financial statements prepared in accordance with local accounting standards,
requested  at the hearing,  had been  granted  until  September  20, 2002,  such
Opinion  having been  presented on  September  18,  2002,  and to present  those
financial statements  reconciled to US GAAP, until December 2, 2002. NASDAQ also
informed the Company that as from  September 13, 2002,  the ADRs would be listed
on the NASDAQ SmallCap Market, bearing the GGAEC symbol.
On  December  10,  2002,  the  NASDAQ  informed  the  Company  that all  listing
requirements  for the  compliance of which the latter had requested an extension
were deemed to have been met by it. The  Company  decided to keep its listing on
the NASDAQ SmallCap Market and recover its GGAL symbol, which took place as from
December 11, 2002.

On July 4, 2002 the Company  approved a proposal made by Banco  Galicia  Uruguay
S.A. by which it would receive 3% in cash and the balance in ordinary negotiable
obligations, in exchange for investments it held in that entity.
On July 26, 2002, the Company  entered into an agreement with that Bank by which
it undertook to irrevocably  exchange  ordinary  negotiable  obligations for US$
43,000 for  subordinated  negotiable  obligations to those  ordinary  negotiable
obligations  for the same amount.  On December 23, 2002, the Court of Montevideo
hearing the case, approved the reorganization plan requested by Banco de Galicia
Uruguay S.A..

In accordance with a resolution adopted by the Central Bank of Uruguay,  as from
January 9, 2003, Banco Galicia Uruguay S.A. implemented a payment program, which
contemplates  the  reimbursement of 100% of deposits in US dollars plus interest
to investors.  As agreed, the first step consists of an initial payment of 3% in
cash to each holder of time,  savings account and demand deposits as of February
13,  2002,  as well as the  delivery of  transferable  rescheduled  time deposit
certificates, as the case may be, issued by Banco Galicia Uruguay S.A.

For the sake of  brevity,  we refer to the  economic  context  within  which the
Company operated in Note 1 to these financial statements.


                                      108
<PAGE>


                         Grupo Financiero Galicia S.A.
   "Corporation which has not adhered to the Optional System for the Mandatory
                   Acquisition of Shares in a Public Offering"
                Informative Review as of March 31, 2003 and 2002
                  (figures stated in thousands of US dollars)


KEY STATEMENT OF FINANCIAL CONDITION FIGURES

<TABLE>
<CAPTION>

                                                    3.31.03         3.31.02          3.31.01         3.31.00
<S>                                                    <C>            <C>               <C>              <C>
Current Assets                                       11,564           15,535          22,043                2
Non-current Assets                                  541,470          804,462         965,892          441,917
                                              --------------  ---------------  --------------  ---------------
Total Assets                                        553,034          819,997         987,935          441,919
                                              ==============  ===============  ==============  ===============

Current Liabilities                                     800              873             313            1,119
Non-current liabilities                              15,928                2               2                2
                                              --------------  ---------------  --------------  ---------------
Subtotal                                             16,728              875             315            1,121
                                              --------------  ---------------  --------------  ---------------

Shareholders' Equity                                536,306          819,122         987,620          440,798
                                              --------------  ---------------  --------------  ---------------
Total                                               553,034          819,997         987,935          441,919
                                              ==============  ===============  ==============  ===============
</TABLE>


KEY INCOME STATEMENT FIGURES


<TABLE>
<CAPTION>

                                                   3.31.03          3.31.02          3.31.01         3.31.00
<S>                                                    <C>            <C>            <C>                 <C>
Ordinary operating result                          (14,175)        (205,994)          36,997           14,497
Financial results                                   (6,554)         (14,049)              88              (7)
Other income and expenses                             1,065               35            (23)              194
                                             ---------------  ---------------  --------------  ---------------
Ordinary net (loss)/ income                        (19,664)        (220,008)          37,062           14,684
                                             ---------------  ---------------  --------------  ---------------
Net (loss) / income                                (19,664)        (220,008)          37,062           14,684
                                             ===============  ===============  ==============  ===============
</TABLE>


RATIOS

<TABLE>
<CAPTION>
                                                    3.31.03          3.31.02         3.31.01          3.31.00
--------------------------------------------------------------------------------------------------------------
<S>                                                    <C>            <C>               <C>              <C>
Liquidity                                            14.4374         17.7948          70.3895          0.0020
Indebtedness                                          0.0312          0.0011           0.0003          0.0025
Return on equity                                    (0.0354)        (0.2117)           0.0390          0.0345
-------------------------------------------------------------------------------------------------------------
</TABLE>


The Company's  individual  financial statements have been considered to disclose
the  key  balance  sheet  figures  and  key  income  statement  figures,  as its
consolidated  financial  statements are disclosed in line with the provisions of
Argentine  Central Bank  Communique "A" 3147 and  supplementary  rules regarding
financial  reporting  requirements  for the  publication of quarterly and annual
financial statements and observing the guidelines of Technical Pronouncement No.
8 of the Argentine Federation of Professional Councils in Economic Sciences.


                                      109


                         Grupo Financiero Galicia S.A.
  "Corporation which has not adhered to the Optional System for the Mandatory
                   Acquisition of Shares in a Public Offering"
                Informative Review as of March 31, 2003 and 2002
                  (figures stated in thousands of US dollars)


For comparative purposes, the balances as of March 31, 2002, 2001 and 2000 have
been restated to constant currency as of February 28, 2003.

Equity interests in other companies

*    Banco de Galicia y Buenos Aires S.A.
See section entitled  "Situation of Banco de Galicia y Buenos Aires S.A. and its
subsidiaries", in Note 1 to the financial statements.

*    Net Investment S.A.

Net  Investment  S.A. is a holding  company,  which is engaged in investing  and
developing  technology  business  and  it  provides  communications,   internet,
connectivity  and  contents   services,   in  order  to  create  value  for  its
shareholders.  Grupo Financiero  Galicia S.A. holds an 87.50% equity interest in
this company and Banco de Galicia y Buenos Aires S.A., owns the remaining 12.50%
of its capital stock.

Irrevocable cash  contributions made as of March 31, 2003 amounted to US$ 1,404.
Between  January 1 and May 27,  2003,  the  Company  made new  irrevocable  cash
contributions of US$ 996.

On July 16, 2002,  Net  Investment  S.A.  acquired  749 shares  which  represent
6.2416% of the capital  stock of B2Agro S.A.,  taking its interest to 99.99167%.
This company  operates under the trade name Red de Campo in the agricultural and
livestock  sector.  As  a  service  company,   it  provides   solutions  to  all
participants  in the  agricultural  and livestock  production  chain in order to
facilitate   their   management,   business  and  integration  by  grouping  and
intercommunicating  them,  thus forming the first private network in the sector.
As of March 31, 2003, that network  consisted of more than 500  agricultural and
livestock producers and more than 30 providers of goods and services, which were
carefully  selected  based on their  skills and  administration  and  technology
levels.

B2Agro is currently  implementing  the granting of financing for working capital
to the  mentioned  sector  through a  program  by which it  participates  in all
aspects, from the search


                                      110
<PAGE>

                         Grupo Financiero Galicia S.A.

  "Corporation which has not adhered to the Optional System for the Mandatory
                   Acquisition of Shares in a Public Offering"
                Informative Review as of March 31, 2003 and 2002
                  (figures stated in thousands of US dollars)


for inputs to the sale of grains on the complex futures  market.  To this end it
has acquired a share in Mercado a Termino de Buenos Aires.

In April  2003,  the  Ordinary  and  Extraordinary  Meeting of  Shareholders  of
Duenovende  S.A., in which Net Investment  S.A.  holds an interest,  resolved to
dissolve the Company in advance and  subsequently  liquidate  it, in view of the
macroeconomic situation and the measures implemented by the Argentine Government
that significantly affected the mortgage loan business, leading to a significant
decrease in real estate purchase and sale operations, areas linked with the main
source of income of the  company,  so that the  "Soloduenos"  web site ceased to
operate  since  January  1,  2003,  and  because  there  are  no  prospects  for
undertaking  new  projects.  Nevertheless,  Banco de Galicia y Buenos Aires S.A.
continues  to offer real  estate  properties  for sale and  financing  for their
acquisition through its e-galicia.com web page.


Net Investment S.A. permanently evaluates various other types of new business in
relation   to   e-commerce,   development   of  internet   projects,   broadband
communications  and contents for wireless services.  In all these projects,  the
company is seeking to make use of the synergies with the operations  carried out
by Grupo Financiero Galicia S.A. and Banco de Galicia y Buenos Aires S.A..

*    Sudamericana Holding S.A.

Sudamericana Holding S.A. is a group of life and retirement insurance companies.

The equity  interest  held by Grupo  Financiero  Galicia S.A. in this company is
87.50%,  and the remaining  12.50% interest is held by Banco de Galicia y Buenos
Aires S.A..

In April 2002, Grupo Financiero Galicia S.A. purchased 8 functional units of the
building  located at Maipu 241,  in the amount of US$ 841 through the release of
the guarantees  provided by Hartford Life  International  Ltd. and Hartford Life
Ltd. in favor of Grupo  Financiero  Galicia  S.A., as stipulated in the contract
for the purchase of shares in Sudamericana Holding S.A. executed on September 7,
2001.


                                      111
<PAGE>

                         Grupo Financiero Galicia S.A.
  "Corporation which has not adhered to the Optional System for the Mandatory
                   Acquisition of Shares in a Public Offering"
                Informative Review as of March 31, 2003 and 2002
                  (figures stated in thousands of US dollars)


The  insurance  business  undertaken  by the  Company  through  its  interest in
Sudamericana Holding S.A. is part of Grupo Financiero Galicia S.A.'s strategy to
strengthen  its  positioning  as a  leading  financial  service  provider,  thus
supplementing  those  businesses  which Banco de Galicia y Buenos Aires S.A. may
only conduct to a limited extent, in line with prevailing regulations.

As of December 31, 2002, the production of all Group companies represented 3.0%
of the life insurance market, being ranked 10th among life insurers. As of March
31, 2003, Sudamericana Holding S.A. had 1,415,601 insureds and 40,155 insurance
policies.

In a year of profound changes,  the company's  business was focused primarily on
the  maintenance  of its portfolio,  loyalty  campaigns  being  addressed to its
current customers.
In the search for  products  adapted to the new market  conditions,  the company
launched a health  plan,  which  combines the payment of  compensation  with the
providing  of  medical  services.  It also  strengthened  the  sale of  personal
accident insurance and other low premium life insurance plans.
The distribution was oriented towards  independent  agents and a program was set
in motion to form an  insurance  broker  network of its own.  The new  insurance
underwriter and broker  network,  which operates as a new company under the name
of  Sudamericana  Asesores de Seguros  S.A.,  currently has more than 100 active
members. The company also continued to strengthen the sale of insurance policies
through  non-traditional  channels,  implementing  a telephone  sale program and
extending such sale through the branches of Tarjetas Regionales S.A.

*    Galicia Warrants S.A.

Galicia Warrants S.A. was established in April 1993, and is authorized to store
goods and issue Warehouse Receipts and Warrants, in line with the provisions of
Law 9643. Its corporate purpose is to facilitate access to credit and financing,
secured by goods that remain under its custody.
Grupo  Financiero  Galicia S.A. holds an 87.50% equity  interest in this company
and Banco de  Galicia y Buenos  Aires  S.A.,  owns the  remaining  12.50% of its
capital stock.

Galicia  Warrants has provided  its goods  custody and control  services to more
than 600 companies at more than 800 warehouses distributed throughout Argentina,
the humid pampa being the region where most of its business is concentrated. Its
principal  customers belong to the agricultural,  industrial and  agroindustrial
sectors, as well as exporters and retailers.

Billings for the period of eight months ended  December 31, 2002 amounted to US$
648.



                                      112
<PAGE>

                         Grupo Financiero Galicia S.A.
  "Corporation which has not adhered to the Optional System for the Mandatory
                   Acquisition of Shares in a Public Offering"
                Informative Review as of March 31, 2003 and 2002
                  (figures stated in thousands of US dollars)

As mentioned in Note 1 to the financial statements,  the impact generated by all
these measures adopted to date by the Government on the financial  statements of
Grupo Financiero  Galicia S.A. and its controlled  entities as of March 31, 2003
was  recognized  according  to  evaluations  and  estimates  made at the date of
preparing  them.  Future actual results might differ from those  evaluations and
estimates and those differences could be significant.  Therefore,  the financial
statements of Grupo  Financiero  Galicia S.A. may not report all the adjustments
that could result from these adverse  conditions  or from any future  amendments
that could be made to legal and regulatory norms in force.

At this time it is not possible to foresee the effect of future  development  of
the country's economy or its consequences on the economic and financial position
of Grupo Financiero Galicia S.A.
In the case of the  financial  system,  one of the most  important  issues is to
achieve the  regeneration  of credit,  which is essential  for economic  growth,
taking advantage of the greater competitiveness produced by a high real exchange
rate, and to rebuild public trust in the banking system as a savings instrument.
The possibility of Argentina  returning to sustained  growth will largely depend
on the recovery of the  financial  system  because,  within a context of lack of
access to  international  markets the generation of credit will only be possible
through the  domestic  financial  system,  and because the banking  system is an
essential component of any market economy.
The  Company's  outlook  for the  current  period is  basically  linked with the
development of the Argentine economy, and particularly of the financial system.
Autonomous City of Buenos Aires, May 30, 2003.
(Signed) Antonio Roberto Garces President.

I, Silvia  Cristina  Bolzon,  a Public  Translator duly registered and sworn and
licensed  to issue  translations  from  English to Spanish and vice versa in the
City of  Buenos  Aires,  hereby  attest  that the  foregoing  is a true and fair
translation  into  English  of the  attached  financial  statements,  notes  and
schedules,  as well as the information  required in addition to the notes to the
financial   statements  by  Section  68  of  the  Buenos  Aires  Stock  Exchange
regulations,  supplementary and explanatory  statement by the Board of Directors
required by the Cordoba Stock Exchange  regulations and the  informative  review
corresponding  to Grupo  Financiero  Galicia S.A. for the period of three months
ended March 31, 2003,  presented in comparative  format,  produced in Spanish, a
copy of which I have had before me.
Given and signed in Buenos Aires, Argentina on June 25, 2003.
Es  traduccion  fiel  al  ingles  de los  estados  contables,  notas  y  anexos,
informacion adicional requerida por el Articulo 68 del reglamento de la Bolsa de
Comercio  de  Buenos  Aires,   declaracion  del  Directorio   complementaria   y
aclaratoria  requerida por el reglamento de la Bolsa de Comercio de Cordoba y la
resena  informativa  correspondientes  a Grupo  Financiero  Galicia  S.A. por el
periodo  de tres meses  terminado  el 31 de marzo de 2003,  presentado  en forma
comparativa,  redactados en idioma castellano que se acompanan en primer termino
y que he tenido a la vista, de lo cual doy fe en Buenos Aires el dia 25 de junio
de 2003.


                                      113

<PAGE>



TRADUCCION PUBLICA
Report of the Supervisory Syndics Committee
To the Directors and Shareholders of
Grupo Financiero Galicia S.A.

In our capacity as Syndics of Grupo Financiero Galicia S.A., we have performed a
limited review of the documents detailed in section I. below. Such documents are
the responsibility of the Board of Directors of the Company.

I.   DOCUMENTS REVIEWED
     ------------------

We have  performed a limited  review of the Statement of Financial  Condition of
Grupo Financiero Galicia S.A. as of March 31, 2003, Income Statement,  Statement
of Changes in Shareholders' Equity and Statement of Cash Flows for the period of
three months then ended,  as well as Notes 1 to 17,  Schedules A, B, C, E, G and
H, Informative Review, the Information  required in addition to the Notes to the
Financial   Statements  by  article  68  of  the  Buenos  Aires  Stock  Exchange
regulations  and the  Supplementary  and  Explanatory  Statement by the Board of
Directors,  as required by the Norms concerning Accounting  Documentation of the
Cordoba Stock Exchange Regulations, which supplement them.

Furthermore, we have performed a limited review of the Consolidated Statement of
Financial Condition of Grupo Financiero Galicia S.A as of March 31, 2003 and the
Consolidated  Income Statement and Consolidated  Statement of Cash Flows for the
period of three months then ended, as well as Notes 1 to 20, which are presented
as supplementary information.

II.  SCOPE OF THE LIMITED REVIEW
     ---------------------------

We performed our work in accordance with standards applicable to syndics.  These
standards  require  syndics  to review  the  documents  detailed  in  section I.
observing  prevailing  auditing  standards  for the limited  review of financial
statements  for interim  periods,  and verify the  consistency  of the documents
reviewed with the information  concerning corporate  decisions,  as disclosed in
minutes,  and evaluate the  conformity of those  decisions  with the law and the
by-laws insofar as concerns formal and documentary aspects.

For purposes of our professional  work in relation to the documents  detailed in
section I., we reviewed the work performed by the external auditors,  who issued
their report on May 30, 2003 in accordance  with prevailing  auditing  standards
for the limited  review of


<PAGE>



financial  statements for interim periods, in which they expressed no opinion on
the above-mentioned financial statements.
Such review included  verifying the planning of the work, as well as the nature,
scope and timing of the procedures applied and the results of the limited review
performed by those  professionals.  A limited review mainly consists in applying
analytical procedures to the accounting  information and making inquiries of the
staff  responsible  for  accounting  and  financial   issues.   This  review  is
substantially less in scope than an audit of financial statements, the objective
of which is to issue an opinion on the  financial  statements  taken as a whole.
Therefore,  we do not express such an opinion.  It is not the  responsibility of
the Supervisory Syndics Committee to perform any control over the management, so
our review did not cover the  business  decisions  and  criteria  regarding  the
different areas of the Company, as such matters are the exclusive responsibility
of the Board of Directors.

In addition,  we have  verified that the  Informative  Review,  the  Information
required  in  addition  to  the  Notes  to  the  Financial  Statements  and  the
Supplementary and Explanatory Statement by the Board of Directors for the period
of three  months  ended  March 31,  2003,  contain the  information  required by
Regulations  of the  National  Securities  Commission,  Section 68 of the Buenos
Aires  Stock  Exchange  regulations  and  Section  2  of  the  Norms  concerning
Accounting   Documentation   of  the   Cordoba   Stock   Exchange   Regulations,
respectively,  and  insofar  as  concerns  our  field  of  competence,  that the
numerical data contained therein are in agreement with the Company's  accounting
records and other relevant  documentation,  so we have no  observations to make.
Assumptions  and  projections on future events  contained in that  documentation
fall  within  the  exclusive  responsibility  of the  Board  of  Directors.

III. PRELIMINARY EXPLANATIONS
     ------------------------

The Board of Directors has evaluated in Note 1 to the financial  statements  the
conditions  existing  in  relation  to  the  economic  measures  adopted  by the
Government to confront the crisis  affecting  Argentina,  a process that has not
yet been concluded.  The impact  generated by those measures on the economic and
financial  situation  of the  Company  and  its  controlled  entities  has  been
recognized  in  the  financial  statements  according  to  the  evaluations  and
estimates  made by  Management.  Future actual results could differ with various
degrees of significance from those  evaluations and estimates.  The existence of
processes for restructuring  the credit portfolio and renegotiating  liabilities
not yet defined at the  controlled  entities  generates  uncertainty as to their
final outcome and their impact on the financial  position and future development
of those companies and, consequently, of the Company.
Furthermore,  the  equity  interest  held by the  Company  in Banco de Galicia y
Buenos  Aires  S.A.  represents  approximately  87% of its Assets and 90% of its
Shareholders'  Equity,  therefore requiring a special mention.


<PAGE>

The situation of that Entity and its controlled  entities produced by the crisis
affecting  the  Argentine  financial  sector,  as well as the  situation  of the
Company in particular, has given rise to the situations that have been disclosed
by  the  Company  in  Note  1 to  the  financial  statements  and  Note 3 to the
consolidated  financial statements,  and by the external auditors in sections 3.
to 12. of their  report,  the  development  and  resolution of which will have a
significant  effect on the normal  conduct of the  Company's  operations  in the
future. In notes to its financial  statements,  the Company discloses assets and
liabilities  of its  own  and/or  owned  by its  controlled  entities,  for  the
valuation and allocation of which it has applied the criteria established by the
Argentine Central Bank, or based on premises on future events, which differ from
professional  accounting  standards.  Sections 13 and 14 of the report issued by
the auditors show situations  related to those items, so no opinion is issued on
the net worth and financial effects they could have on Grupo Financiero  Galicia
S.A. and its controlled  entities.  This Supervisory  Syndics  Committee concurs
with those statements. Consequently, the financial statements should be analyzed
in the light of these uncertain circumstances.

IV.  CONCLUSION
     ----------

In our  opinion,  based on the  review  performed  with the scope  mentioned  in
section  II.,  the  accompanying  financial  statements  have been  prepared  in
accordance with professional  accounting  standards prevailing in the Autonomous
City of Buenos Aires,  except for the  application of valuation,  disclosure and
revenue  recognition  criteria  relating to directly and  indirectly  controlled
companies, as disclosed in the notes to financial statements and to consolidated
financial  statements,  which  differ  from  those  standards.   Therefore,  the
financial  condition,  results of operations and changes in shareholders' equity
disclosed  have  been  determined  on the  basis  of the  application  of  those
standards. Nevertheless, in view of the effect on the above financial statements
that could derive from possible adjustments and reclassifications  that might be
required  following  resolution  of the situation  described in the  Preliminary
Explanations in section III. above, we understand that the financial  statements
referred to above, as well as the financial condition, results of operations and
changes in shareholders'  equity disclosed in them, should be read and construed
in the  light of the  uncertain  conditions  generated  by  subsequent  economic
developments,  the  impact  of which on the  Company's  economic  and  financial
position cannot be evaluated with  reasonable  certainty.  Therefore,  we do not
issue any opinion in this connection.

As regards the Informative  Review, the Information  required in addition to the
Notes  to  the  Financial  Statements  and  the  Supplementary  and  Explanatory
Statement by the Board of  Directors  for the period of three months ended March
31,  2003,  we have no  observations  to make  insofar as concerns  our field of
competence, and the assertions on future events are the exclusive responsibility
of the Board of Directors of the Company.

<PAGE>

Furthermore,  we report that the  accompanying  financial  statements  stem from
accounting records kept, in all formal respects,  in compliance with legal rules
prevailing in Argentina.

Autonomous City of Buenos Aires, June 2, 2003
---------------------------------------------

(Signed)  LUIS O. ODDONE,  ADOLFO  HECTOR  MELIAN and NORBERTO  DANIEL  CORIZZO,
Syndics, for the Syndics' Committee.

I, Silvia  Cristina  Bolzon,  a Public  Translator duly registered and sworn and
licensed  to issue  translations  from  English to Spanish and vice versa in the
City of  Buenos  Aires,  hereby  attest  that the  foregoing  is a true and fair
translation  into  English of the  attached  Report of the  Supervisory  Syndics
Committee corresponding to Grupo Financiero Galicia S.A. for the period of three
months  ended March 31,  2003,  produced in Spanish,  a copy of which I have had
before me.
Given and signed in Buenos Aires, Argentina on June 20, 2003.
This translation consists of 4 pages.
Es  traduccion  fiel  al  ingles  del  Informe  de  la  Comision   Fiscalizadora
correspondiente  a Grupo  Financiero  Galicia  S.A. por el periodo de tres meses
terminado el 31 de marzo de 2003,  redactado en idioma  castellano cuya copia se
acompana  en primer  termino  y que he  tenido a la vista,  de lo cual doy fe en
Buenos  Aires  el  dia  20  de  junio  de  2003.   Consta  de  4  fojas  utiles.



<PAGE>



[LOGO OF PRICE WATERHOUSE]
-------------------------------------------------------------------------------
                                      Price Waterhouse & Co.
                                      Av. A. Moreau de Justo 270, Piso 2(degree)
                                      C1107AAF Ciudad de Buenos Aires
                                      Tel. (54-11) 4319-4600
                                      Fax (54-11) 4315-6448 / 9

                              LIMITED REVIEW REPORT

To the Chairman and Directors of
Grupo Financiero Galicia S.A.
Tte. Gral. Juan D. Peron 456, Piso 2(0)
Autonomous City of Buenos Aires
-------------------------------

1.   We have performed a limited review of the statement of financial  condition
     of Grupo  Financiero  Galicia  S.A.  as of March 31,  2003 and the  related
     income  statement,   statement  of  changes  in  shareholders'  equity  and
     statement  of cash flows for the  periods of three  months  ended March 31,
     2003 and  2002,  as well as Notes 1 to 17,  Schedules  A, B, C, E, G and H,
     Informative  Review,  the Information  required in addition to the Notes to
     the  Financial  Statement by Section 68 of the Buenos Aires Stock  Exchange
     regulations,  and the Supplementary and Explanatory  Statement by the Board
     of Directors,  as required by the rules regarding accounting  documentation
     of  the  Cordoba  Stock  Exchange   regulations,   which  supplement  them.
     Furthermore,  we  have  performed  a  limited  review  of the  consolidated
     statement of financial  condition  of Grupo  Financiero  Galicia S.A. as of
     March 31, 2003, and the  consolidated  income  statements and  consolidated
     statements  of cash flows for the periods of three  months  ended March 31,
     2003  and  2002,  together  with  Notes 1 to 20,  which  are  presented  as
     supplementary information.  The preparation and issuance of these financial
     statements  are the  responsibility  of the Company in the  exercise of its
     exclusive functions.


2.   Our review was limited to the  application  of the  procedures set forth by
     Technical  Pronouncement No. 7 of the Argentine  Federation of Professional
     Councils in Economic  Sciences for limited reviews of financial  statements
     for  interim  periods,   which  mainly  consists  in  applying   analytical
     procedures to the accounting  information and making inquiries of the staff
     responsible  for  the  preparation  of  the  information  included  in  the
     financial statements and their subsequent  analysis.  These limited reviews
     are substantially less in scope than an audit examination, the objective of
     which  is  to  express  an  opinion  on  the  financial   statements  under
     examination.  Accordingly,  we do not  express an opinion on the  Company's
     financial  position,  the  results  of  its  operations,   changes  in  its
     shareholders'  equity  and cash  flows,  or on its  consolidated  financial
     position,  the consolidated results of its operations and consolidated cash
     flows.


<PAGE>


3.   The equity  interest held by the Company in Banco de Galicia y Buenos Aires
     S.A.  as of March 31,  2003  represents  approximately  87% and 90% of that
     company's assets and shareholders' equity, respectively. The possibility of
     recovering that investment has been affected by the uncertain circumstances
     detailed in paragraphs 4. to 12. below.

4.   As  described  in Note 1 to the  financial  statements,  Banco de Galicia y
     Buenos  Aires  S.A.  continues  with the  restructuring  process  involving
     certain  financing  of  its  private  sector  portfolio  which  amounts  to
     approximately  $414,000 (US$ 138,926  thousand) and $373,000  thousand (US$
     125,168 thousand) as of March 31, 2003 and December 31, 2002, respectively.
     At the date of issue of this  report,  it is not  possible  to foresee  the
     impact on the  classification  of debtors and the levels of allowances  set
     up, which could derive from the outcome of that process.

5.   As mentioned in Note 1 to the  financial  statements,  the  Government  has
     declared default on public debt servicing in early 2002.  Consequently,  it
     is not  possible  to  assure  that the  recoverable  values  of  government
     securities and financing to the public sector recorded by the Company under
     "Government  and  corporate  securities",  "Loans"  and "Other  receivables
     resulting  from  financial  brokerage",  in the  consolidated  statement of
     financial  condition,  including trust funds,  will exceed their respective
     net carrying values which as of March 31, 2003 and December 31, 2002 amount
     to  approximately   $17,246,000   thousand  (US$  5,787,248  thousand)  and
     $17,531,000 thousand (US$ 5,882,886 thousand), respectively.

6.   Without  prejudice to the statement made in paragraph 5 above, as mentioned
     in Note 1 to the financial statements, Banco de Galicia y Buenos Aires S.A.
     records $599,716  thousand (US$ 201,247  thousand) and $6,214,918  thousand
     (US$  2,085,543  thousand) in  "Government  and corporate  securities"  and
     "Other receivables resulting from financial brokerage", respectively, as of
     March 31, 2003,  which were generated by the request for  compensation  for
     the losses caused by the  devaluation of the currency and  conversion  into
     pesos that Bank submitted to the Argentine Central Bank. The calculation of
     that  compensation is pending review and approval by the Argentine  Central
     Bank. As of December 31, 2002,  that Bank recorded  $693,471  thousand (US$
     232,708  thousand) and $7,098,505  thousand (US$ 2,382,049  thousand) under
     "Government and corporate securities" and "Other receivables resulting from
     financial brokerage", respectively, for that item.

7.   As of March 31, 2003 and December 31, 2002, Banco de Galicia y Buenos Aires
     S.A.  records  rescheduled  deposits  (CEDROS) for $803,458  thousand  (US$
     269,617   thousand)   and  $874,703   thousand   (US$  293,525   thousand),
     respectively,   under  liabilities,   without  including  interest  or  the
     adjustment  from   application  of  the  Reference   Stabilization   Index,
     corresponding  to  deposits  converted  into  pesos  under  Decree  214/02.
     Furthermore,  as of March 31,  2003,  Banco de Galicia y Buenos  Aires S.A.
     recorded $469,498  thousand (US$ 157,550 thousand) in "Intangible  assets",
     paid in  compliance  with  court  resolutions  ordering  Banco de Galicia y
     Buenos Aires S.A. to reimburse its customers for the difference between the
     deposits  converted  into  pesos  and  their  value at the  free US  dollar
     exchange  rate.  As of December 31,  2002,  Banco de Galicia y Buenos Aires
     S.A.  had



<PAGE>


     recorded  $446,756  thousand (US$ 149,918  thousand) in "Other  receivables
     resulting from  financial  brokerage" for that item. As explained in Note 1
     to the  financial  statements,  so far the Supreme Court of Justice has not
     issued any decision on the legal actions filed with it requesting  that the
     above-mentioned Decree be declared unconstitutional,  so it is not possible
     to determine the final  settlement  values to be applied to those  deposits
     converted into pesos or whether the amounts  already paid will be recovered
     by Banco de Galicia y Buenos Aires S.A..

8.   As mentioned in Note 1 to the financial  statements,  Banco Galicia Uruguay
     S.A., an entity controlled by Banco de Galicia y Buenos Aires S.A. has been
     intervened  by the Central  Bank of Uruguay.  In addition,  its  controlled
     entity,  Banco  de  Galicia  (Cayman)  Ltd.  is  subject  to a  provisional
     liquidation process. These processes,  including the transfer of securities
     to Banco Galicia Uruguay S.A. in compensation for the assets converted into
     pesos  described  in  Note 1 to the  financial  statements,  had  not  been
     concluded at the date of issue of these financial  statements,  so there is
     uncertainty as to the effects  derived from the outcome of those  processes
     on the  assets  and  liabilities  of those  entities  and on the assets and
     liabilities  and  financial  position  of Grupo  Financiero  Galicia  S.A.,
     including the  recoverability  of the  restructured  investment held by the
     Company in Banco Galicia Uruguay S.A.

9.   As mentioned in Note 8 to the consolidated  financial  statements,  certain
     companies  controlled  by  Banco  de  Galicia  y  Buenos  Aires  S.A.  have
     renegotiated  or are  renegotiating  their  debts in respect of  Negotiable
     Obligations  through the delivery of Debt Certificates  secured by a trust.
     Those debts have been valued  according to the method of the present  value
     of future discounted cash flows,  which means the assumption of premises on
     future  events  or the  estimated  settlement  value  of  balances  not yet
     restructured.  Actual  results could differ from the estimates  made by the
     Management  of  the  controlled   entities  on  the  basis  of  the  actual
     development of those premises and the negotiations not yet concluded.

10.  As indicated in Note 1 to these  financial  statements,  Banco de Galicia y
     Buenos Aires S.A.  recorded  $118,232  thousand (US$ 39,675 thousand) under
     "Other  receivables  resulting  from  financial  brokerage" as of March 31,
     2003,  for the  estimate of the  difference  resulting  from  applying  the
     Reference  Stabilization  Index (CER) to the loans subject to adjustment by
     applying the Salary Variation Index (CVS). This additional compensation was
     pending  resolution by the  government  authorities at the date of issue of
     these financial statements.


11.  The  situation of Banco de Galicia y Buenos  Aires S.A. and its  controlled
     entities,  derived  from  the  liquidity  crisis  affecting  the  Argentine
     financial  system and  worsened by the effects of the measures and economic
     context  mentioned in Note 1 to the financial  stsatements  and the effects
     that could  derive  following  resolution  of the  situations  described in
     paragraphs  4 to 10  above,  as well as  compliance  by Banco de  Galicia y
     Buenos Aires S.A.  with the "Galicia  Capitalization  and  Liquidity  Plan"
     detailed in Note 1 to the financial  statements,  which mainly contemplates
     keeping its liquidity levels, the


<PAGE>

     restructuring  and/or  capitalization of its financial  obligations and the
     reduction of charges for non-compliance  with technical ratios, in addition
     to the  mismatching of terms and yields of assets and  liabilities  and the
     recoverable  value of  goodwill,  are factors  that raise  doubts about the
     normal  course of  business of Banco de Galicia y Buenos  Aires S.A..  that
     Bank  has  prepared  its  financial  statements  following  the  accounting
     principles  described  in  Notes  2 and  3 to  the  consolidated  financial
     statements,  which are  applicable  to a going  concern.  Therefore,  those
     financial statements do not include the effects of possible adjustments and
     reclassifications,  if any, that might be required following  resolution of
     the situations  described above and if Banco de Galicia y Buenos Aires S.A.
     and Grupo  Financiero  Galicia  S.A.  were obliged to sell their assets and
     settle their liabilities, including contingencies, in conditions other than
     those prevailing at the date of issue of the financial statements.

12.  As  mentioned  in Note 1, as a  result  of the  economic  crisis  affecting
     Argentina, the period under consideration has been affected by all measures
     adopted by the  Government.  The future  development of the economic crisis
     could require the  Government to modify some of the measures  adopted or to
     issue  new  regulations.  Furthermore,  the  estimates  contained  in these
     financial  statements  could vary as a result of future events.  Therefore,
     the financial  statements of the Company must be read in the light of these
     circumstances.

13.  Banco de Galicia y Buenos Aires S.A. has prepared its financial  statements
     following  valuation  and  disclosure  criteria  established  by  Argentine
     Central  Bank  regulations.  As  mentioned  in  Note 3 to the  consolidated
     financial  statements,  these  criteria  for  valuing  certain  assets  and
     liabilities  and the financial  reporting  requirements  established by the
     control entity are not in accordance with CNV regulations and  professional
     accounting  standards  in force in the  Autonomous  City of  Buenos  Aires.
     Except for the cases  indicated in that Note,  the effect on the  financial
     statements derived from the different valuation and disclosure criteria has
     not been quantified by Grupo Financiero Galicia S.A.

14.  The criterion for consolidating the interests in Banco Galicia Uruguay S.A.
     and Banco Galicia  (Cayman) Ltd.,  described in Note 4 to the  consolidated
     financial  statements,  are not in accordance with professional  accounting
     standards.  The estimated  effects  derived from the addition of the assets
     and liabilities of those entities on the consolidated  financial statements
     of Grupo Financiero Galicia S.A. have been described in Note 1.

15.  The Company  carries its  accounting  records and reports its net worth and
     financial position, results of operations,  changes in shareholders' equity
     and cash flows in Argentine currency,  as required by existing legal rules.
     Nevertheless,  the financial statements mentioned in paragraph 1. have been
     translated  to  U.S.  dollars  at  the  exchange  rate  of  US$ 1 = $  2.98
     prevailing at March 31, 2003, in connection with their  presentation to the
     National  Securities  Commission  and in compliance  with the provisions of
     General Resolution No. 368/2001.
     The  accompanying  financial  statements  are  presented  on the  basis  of
     accounting  principles  generally  accepted in Argentina,  which may differ
     from the accounting  principles  generally accepted in jurisdictions  other
     than Argentina, where those financial statements are to be used.

<PAGE>


16.  In view of the effect on the financial statements of the Company that could
     derive from the  adjustments or  reclassifications,  if any, which might be
     required following  resolution of the situations  described in paragraphs 3
     to 12 above,  and considering the departures from  professional  accounting
     standards mentioned in paragraphs 13 and 14 above, we are not in a position
     to  make  any  statement  concerning  the  financial  statements  of  Grupo
     Financiero  Galicia S.A., and its consolidated  financial  statements as of
     March 31, 2003 and 2002 taken as a whole.

17.  We have  audited  the  financial  statements  as of  December  31,  2002 in
     accordance  with  auditing  standards  prevailing in Argentina and issued a
     report disclaiming an opinion on those financial statements on February 17,
     2003. The  comparative  information  included in the statement of financial
     condition  and related notes stems from those  financial  statements of the
     Company as of December 31, 2002.

18.  As called for by the regulations in force, we report that:

     a)   The  financial  statements  referred  to in  paragraph  1.  stem  from
          accounting  records kept in all formal respects as called for by legal
          rules  prevailing in Argentina.  Those financial  statements have been
          transcribed  to the  "Inventory  and Balance Sheet" book and have been
          prepared in line with the provisions of Law 19550 and CNV regulations.
     b)   We have read the Informative  Review and the  Information  required in
          addition to the Notes to the Financial Statements by article 68 of the
          Buenos Aires Stock Exchange regulations,  as well as the Supplementary
          and  Explanatory  Statement by the Board of Directors,  as required by
          the rules  regarding  accounting  documentation  of the Cordoba  Stock
          Exchange regulations, and insofar as concerns our field of competence,
          we have no  significant  observations  to make  concerning  them.  The
          projections  on future  events  stated in that  documentation  are the
          exclusive responsibility of the Company's Board of Directors.
     c)   As of March 31, 2003, the  liabilities  accrued in respect of employee
          withholdings and employer contributions towards the Integrated Pension
          and Survivors'  Benefit System,  according to the accounting  records,
          amounted  to $ 6,718.90  (US$  2,255),  which were not yet due at that
          date.


Buenos Aires, May 30, 2003
--------------------------                               PRICE WATERHOUSE & CO.


                                                                      (Partner)
                                      -----------------------------------------
                                        Professional Registration of the Firm:
                                            C.P.C.E.C.A.B.A. To. 1 Fo. 1
                                              Ignacio Javier Casas Rua
                                             Public Accountant (U.B.A.)
                                           C.P.C.E. C.A.B.A. To. 121 Fo. 94