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 fiscal years
ended December 31, 2003 and 2002

                                       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"
                               Table of Contents
                   Financial Statements and Auditors' Report
                  For the fiscal years ended December 31, 2003
                                    and 2002
                  Report of the Supervisory Syndics Committee
                  For the fiscal year ended December 31, 2003.
                             System established by
     Technical Regulations (N.T.2001) of the National Securities Commission

Heading                                                                        3

Consolidated Statement of Financial Condition                                  4

Consolidated Memorandum Accounts                                               7

Consolidated Income Statement                                                  8

Consolidated Statement of Cash Flows                                          10

Notes to Consolidated Financial Statements                                    11

Statement of Financial Condition                                              58

Income Statement                                                              59

Statement of Changes in Shareholders' Equity                                  60

Statement of Cash Flows                                                       61

Notes to Financial Statements                                                 62

Schedules                                                                    109

Information  required in addition to the Notes to Financial
Statements by Section 68 of the Buenos Aires Stock
Exchange regulations                                                         116

Supplementary  and  Explanatory  Statement by the Board of
Directors required by Section 2 of the  Accounting
Documentation Rules of the Cordoba Stock Exchange Regulations                119

Informative Review                                                           122

Report of the Supervisory Syndics Committee

Auditors` Report

                                       2
<PAGE>

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

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 5th fiscal year ended December 31, 2003,
Presented in comparative format with the previous fiscal year

DATE OF REGISTRATION WITH THE PUBLIC REGISTRY OF COMMERCE

By-laws:                                     September 30, 1999

Date of more recent amendment to By-laws:    August 22, 2003

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
December 31, 2003:                           25.74%

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

<TABLE>
<CAPTION>
========================================================================================================
               CAPITAL STATUS as of December 31, 2003 (Note 8 to the Financial Statements)
                               (figures stated in thousands of US dollars)
--------------------------------------------------------------------------------------------------------
                                                 Shares
--------------------------------------------------------------------------------------------------------
                                                Voting rights per
    Number                     Type                   share              Subscribed              Paid up
--------------------------------------------------------------------------------------------------------
<S>                  <C>                                <C>               <C>                   <C>
                     Ordinary  class "A", face
  281,221,650        value of 0.0003                    5                  95,980                 95,980
--------------------------------------------------------------------------------------------------------
                     Ordinary  class "B", face
  811,185,367        value of 0.0003                    1                 276,855                276,855
--------------------------------------------------------------------------------------------------------
1,092,407,017                                                             372,835                372,835
========================================================================================================
</TABLE>

                                       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 December 31, 2003 and 2002
                  (figures stated in thousands of US dollars)

<TABLE>
<CAPTION>
=============================================================================================================================
                                                                                       12.31.03              12.31.02
                                                                                  -------------------------------------------
<S>                                                                                        <C>                   <C>
 ASSETS
                                                                                  -------------------------------------------
 A.   CASH AND DUE FROM BANKS                                                                281,962               196,873
                                                                                  -------------------------------------------
      -Cash                                                                                  136,757                85,399
      -Banks and correspondents                                                              144,916               111,261
      -Others                                                                                    289                   213
                                                                                  -------------------------------------------
 B.   GOVERNMENT AND CORPORATE SECURITIES                                                    989,796               624,519
                                                                                 --------------------------------------------
      -Holdings of investment account securities                                             848,164               570,963
      -Holdings of trading securities                                                        111,915                 2,621
      -Unlisted government securities                                                         29,429                50,061
      -Investments in listed corporate securities                                              1,007                 3,220
      -Allowances                                                                              (719)               (2,346)
                                                                                  -------------------------------------------
 C.   LOANS                                                                                3.748.724             3,645,791
                                                                                  -------------------------------------------
      -To the non-financial public sector                                                  2,662,304             2,624,581
      -To the financial sector                                                                66,448                46,010
      -To the non-financial private sector and residents abroad                            1,421,786             1,549,205
        -Overdrafts                                                                           74,711                77,469
        -Notes                                                                               473,640               527,053
        -Mortgage loans                                                                      245,595               294,868
        -Pledge loans                                                                         18,650                65,370
        -Consumer loans                                                                       18,831                40,951
        -Credit cards                                                                        279,467               199,640
        -Others                                                                              133,417               140,627
        -Accrued Interest and quotation differences receivable                               178,526               207,671
        -Documented interest                                                                   (848)               (3,697)
        -Unallocated collections                                                               (203)                 (747)
      -Allowances for loan losses                                                          (401,814)             (574,005)
                                                                                  -------------------------------------------
 D.   OTHER RECEIVABLES RESULTING FROM FINANCIAL BROKERAGE                                 2,115,156             3,158,942
                                                                                  -------------------------------------------
      -Argentine Central Bank                                                                 23,838                19,081
      -Amounts receivable for spot and forward sales to be settled                                 -                   656
      -Securities receivable under spot and forward purchases to be settled                       47                   230
      -Unlisted negotiable obligations                                                        35,424                45,159
      -Other receivables not included in the debtor classification regulations             1,957,837             2,862,737
      -Other receivables included in the debtor classification regulations                   105,255               235,452
      -Accrued interest receivable not included in the debtor classification
       regulations                                                                            27,016                 2,454
      -Accrued interest receivable included in the debtor classification
       regulations                                                                               554                 8,305
      -Allowances                                                                           (34,815)              (15,132)
=============================================================================================================================
</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 Statement of Financial Condition
                        as of December 31, 2003 and 2002
                  (figures stated in thousands of US dollars)

<TABLE>
<CAPTION>
==============================================================================================================================
                                                                                         12.31.03             12.31.02
                                                                                   -------------------------------------------
<S>                                                                                         <C>                   <C>
 E.   ASSETS UNDER FINANCIAL LEASES                                                            8,400                 7,727
                                                                                   -------------------------------------------
      -Assets under financial leases                                                          10,040                 8,567
      -Allowances                                                                             (1,640)                 (840)
                                                                                   -------------------------------------------
 F.   EQUITY INTERESTS IN OTHER COMPANIES
                                                                                              29,715                35,582
                                                                                   -------------------------------------------
      -In financial institutions                                                               1,027                 1,190
      -Others                                                                                 48,435                52,426
      -Allowances                                                                            (19,747)              (18,034)
                                                                                   -------------------------------------------
 G.   MISCELLANEOUS RECEIVABLES                                                              160,509               113,330
                                                                                   -------------------------------------------
      -Receivables for assets sold                                                                63                   226
      -Shareholders                                                                              745                     -
      -Others                                                                                155,189               123,072
      -Accrued interest on receivables for assets sold                                            14                     1
      -Other accrued interest and adjustments receivable                                      22,886                    57
      -Allowances                                                                            (18,388)              (10,026)
                                                                                   -------------------------------------------
 H.   FIXED ASSETS                                                                           176,632               194,701
                                                                                   -------------------------------------------
 I.   MISCELLANEOUS ASSETS                                                                    53,958                63,059
                                                                                   -------------------------------------------
 J.   INTANGIBLE ASSETS                                                                      248,143               109,880
                                                                                   -------------------------------------------
      -Goodwill                                                                               47,673                58,152
      -Organization and development expenses                                                 200,470                51,728
                                                                                   -------------------------------------------
 K.   UNALLOCATED ITEMS                                                                          885                 8,134
                                                                                   -------------------------------------------
      TOTAL ASSETS                                                                         7,813,880             8,158,538
                                                                                   ===========================================

==============================================================================================================================
</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 Statement of Financial Condition
                        as of December 31, 2003 and 2002
                  (figures stated in thousands of US dollars)

<TABLE>
<CAPTION>
=================================================================================================================================
                                                                                            12.31.03              12.31.02
                                                                                      -------------------------------------------
<S>                                                                                            <C>                  <C>
 LIABILITIES
                                                                                      -------------------------------------------
 L.   DEPOSITS                                                                                 1,905,800            1,777,937
                                                                                      -------------------------------------------
      -Non-financial public sector                                                                 4,236                2,671
      -Financial sector                                                                            6,642                1,005
      -Non-financial private sector and residents abroad                                       1,894,922            1,774,261
       -Current accounts                                                                         397,168              246,878
       -Savings accounts                                                                         279,484              192,446
       -Time deposits                                                                            968,765              827,015
       -Investment accounts                                                                           63                    -
       -Others                                                                                   182,125              379,168
       -Accrued interest and quotation differences payable                                        67,317              128,754
                                                                                      -------------------------------------------
 M.   OTHER LIABILITIES RESULTING FROM FINANCIAL BROKERAGE                                     5,153,385            5,587,361
                                                                                      -------------------------------------------
      -Argentine Central Bank                                                                  2,775,734            2,766,574
       -Rediscounts to cover lack of  liquidity                                                1,904,429            1,860,027
       -Others                                                                                   871,305              906,547
      -Banks and international entities                                                          933,611            1,086,931
      -Unsubordinated negotiable obligations                                                     816,692            1,182,437
      -Amounts payable for spot and forward purchases to be settled                                    -                  728
      -Securities to be delivered under spot and forward sales to be settled                      33,995               42,502
      -Loans from domestic financial institutions                                                 44,970               68,693
      -Others                                                                                    342,616              344,192
      -Accrued interest and quotation differences payable                                        205,767               95,304
                                                                                      -------------------------------------------
 N.   MISCELLANEOUS LIABILITIES                                                                   80,365               87,629
                                                                                      -------------------------------------------
      -Dividends payable                                                                              16                   16
      -Fees                                                                                          460                  755
      -Others                                                                                     79,265               86,856
      -Adjustments and accrued interest payable                                                      624                    2
                                                                                      -------------------------------------------
 O.   PROVISIONS                                                                                 141,596              114,184
                                                                                      -------------------------------------------
 P.   UNALLOCATED ITEMS                                                                              900                3,562
                                                                                      -------------------------------------------
MINORITY INTEREST IN CONSOLIDATED ENTITIES OR COMPANIES                                           32,743               28,603
                                                                                      -------------------------------------------
TOTAL LIABILITIES                                                                              7,314,789            7,599,276
                                                                                      ===========================================
SHAREHOLDERS' EQUITY                                                                             499,091              559,262
                                                                                      -------------------------------------------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY                                                     7,813,880            8,158,538
=================================================================================================================================
</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 Memorandum Accounts
                        as of December 31, 2003 and 2002
                  (figures stated in thousands of US dollars)

<TABLE>
<CAPTION>
==============================================================================================================================
                                                                                         12.31.03             12.31.02
                                                                                   -------------------------------------------
<S>                                                                                          <C>                  <C>
  DEBIT                                                                                      8,122,804            8,583,199
                                                                                   ===========================================
  CONTINGENT                                                                                 5,664,952            5,900,972
                                                                                   -------------------------------------------
  Guarantees received                                                                        3,476,009            3,764,766
  Contingencies re. Contra items                                                             2,188,943            2,136,206
                                                                                   -------------------------------------------
  CONTROL                                                                                    2,376,541            2,650,943
                                                                                   -------------------------------------------
  Uncollectible loans                                                                          318,078              271,928
  Others                                                                                     2,002,986            2,335,147
  Control re. contra items                                                                      55,477               43,868
                                                                                   -------------------------------------------
  DERIVATIVES                                                                                   56,454                4,944
                                                                                   -------------------------------------------
  "Notional" value of put options bought                                                             -                4,084
  Derivatives re. contra items                                                                  56,454                  860
                                                                                   -------------------------------------------
  TRUST ACCOUNTS                                                                                24,857               26,340
                                                                                   -------------------------------------------
  Trust funds                                                                                   24,857               26,340
                                                                                   -------------------------------------------
  CREDIT                                                                                     8,122,804            8,583,199
                                                                                   ===========================================
                                                                                   -------------------------------------------
  CONTINGENT                                                                                 5,664,952            5,900,972
                                                                                   -------------------------------------------
  Loans granted (unused balances)                                                               75,397               58,375
  Guarantees provided to the Argentine Central Bank                                          1,934,057            1,922,802
  Other guarantees provided included in the debtor classification regulations                   80,005               92,471
  Other guarantees provided not included in the debtor classification regulations               91,715                9,735
  Others included in the debtor classification regulations                                          26                    -
  Others not included in the debtor classification regulations                                  11,358               52,823
  Contingencies re. Contra items                                                             3,472,394            3,764,766
                                                                                   -------------------------------------------
  CONTROL                                                                                    2,376,541            2,650,943
                                                                                   -------------------------------------------
  Valuables to be credited                                                                      55,425               43,805
  Others                                                                                            52                   62
  Control re. contra items                                                                   2,321,064            2,607,076
                                                                                   -------------------------------------------
  DERIVATIVES                                                                                   56,454                4,944
                                                                                   -------------------------------------------
  "Notional" value of call options written                                                           -                    -
  "Notional" value of put options written                                                       56,454                  860
  Derivatives re. contra items                                                                       -                4,084
                                                                                   -------------------------------------------
  TRUST ACCOUNTS                                                                                24,857               26,340
                                                                                   -------------------------------------------
  Trust liabilities re. Contra items                                                            24,857               26,340
==============================================================================================================================
</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 Income Statement
                              For the fiscal year
             commenced January 1, 2003 and ended December 31, 2003
         presented in comparative format with the previous fiscal year
                  (Figures stated in thousands of US dollars)

<TABLE>
<CAPTION>
==============================================================================================================================
                                                                                        12.31.03              12.31.02
                                                                                  --------------------------------------------
<S>                                                                                          <C>                  <C>
 A.   FINANCIAL INCOME                                                                       574,043            1,978,727
                                                                                  --------------------------------------------
      Interest on cash and due from banks                                                         23                  809
      Interest on loans to the financial sector                                               34,508               29,632
      Interest on overdraft facilities                                                        13,243               46,703
      Interest on notes                                                                       65,808               75,362
      Interest on mortgage loans                                                              32,366               42,806
      Interest on pledge loans                                                                 3,998               20,373
      Interest on credit card loans                                                           43,523               60,479
      Interest on other loans                                                                  9,859               39,733
      Interest on other receivables resulting from financial brokerage                        33,673               77,808
      Net income from government and corporate securities                                     44,084              206,407
      Net income from secured loans - Decree 1387/01                                          76,084               76,358
      Adjustment from application of adjusting index (CER)                                   196,855            1,161,362
      Adjustment from application of salary variation index (CVS)                             11,945                    -
      Others                                                                                   8,074              140,895
                                                                                  --------------------------------------------
 B.   FINANCIAL EXPENSES                                                                     512,936            1,556,453
                                                                                  --------------------------------------------
      Interest on current account deposits                                                     1,037                5,995
      Interest on savings account deposits                                                     1,039                2,780
      Interest on time  deposits                                                              68,862               99,608
      Interest on loans from financial sector                                                  2,306                9,037
      Interest on other liabilities resulting from financial brokerage                       116,234              222,880
      Other interest                                                                         139,510              547,909
      Net loss on options                                                                          -                   90
      Adjustment from application of adjusting index (CER)                                    64,004              592,030
      Others                                                                                 119,944               76,124
                                                                                  --------------------------------------------
      GROSS BROKERAGE MARGIN                                                                  61,107              422,274
                                                                                  ============================================
 C.   PROVISIONS FOR  LOAN LOSSES                                                             97,757              562,654
                                                                                  --------------------------------------------
 D.   INCOME FROM SERVICES                                                                   147,357              176,118
                                                                                  --------------------------------------------
      Linked with lending transactions                                                        46,442               48,600
      Linked with borrowing transactions                                                      39,647               51,155
      Other commissions                                                                        3,190                4,919
      Others                                                                                  58,078               71,444
                                                                                  --------------------------------------------
 E.   EXPENSES FOR SERVICES                                                                   24,013               47,999
                                                                                  --------------------------------------------
      Commissions                                                                             12,026               34,251
      Others                                                                                  11,987               13,748
==============================================================================================================================
      MONETARY RESULT OF FINANCIAL BROKERAGE                                                 (4,951)            (490,698)
==============================================================================================================================
</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
                         Consolidated Income Statement
                              For the fiscal year
             commenced January 1, 2003 and ended December 31, 2003
         presented in comparative format with the previous fiscal year
                  (figures stated in thousands of US dollars)

<TABLE>
<CAPTION>
==============================================================================================================================
                                                                                                  12.31.03            12.31.02
                                                                                  --------------------------------------------
<S>                                                                                          <C>                   <C>
 G.   ADMINISTRATIVE EXPENSES                                                                      192,275             323,384
                                                                                  ---------------------------------------------
      Personnel expenses                                                                            83,106             169,292
      Directors' and syndics' fees                                                                     654               1,104
      Other fees                                                                                     7,268               9,565
      Advertising and publicity                                                                      6,833               5,245
      Taxes                                                                                         10,173              19,714
      Other operating expenses                                                                      69,829              99,046
      Others                                                                                        14,412              19,418
                                                                                  ---------------------------------------------
      MONETARY RESULT OF OPERATING EXPENSES                                                             29               7,168
                                                                                  ---------------------------------------------
      NET LOSS ON FINANCIAL BROKERAGE                                                             (110,503)           (819,175)
                                                                                  =============================================
         RESULT OF MINORITY INTEREST                                                                (3,272)
                                                                                                                        92,004
                                                                                  ---------------------------------------------
     H.    MISCELLANEOUS INCOME                                                                    245,463              99,457
                                                                                  ---------------------------------------------
           Penalty interest                                                                          1,086               2,134
           Loans recovered and allowances reversed                                                 192,436              13,014
           Adjustment from application of adjusting index (CER)                                     18,560                 384
           Others                                                                                   33,381              83,925
                                                                                  ---------------------------------------------
     I.    MISCELLANEOUS LOSSES                                                                    204,368             263,765
                                                                                  ---------------------------------------------
           Net loss on long-term investments                                                         7,703              46,071
           Penalty interest and charges in favor of the Argentine Central Bank                          43                 220
           Provision for losses on miscellaneous receivables and other provisions                  116,410             153,341
           Adjustment from application of adjusting index (CER)                                        624                   8
           Others                                                                                   79,588              64,125
                                                                                  ---------------------------------------------
           MONETARY RESULT OF OTHER OPERATIONS                                                      (1,200)            (55,662)
                                                                                  ---------------------------------------------
           PRE-TAX NET LOSS                                                                        (73,880)           (947,141)
                                                                                  ---------------------------------------------
     K.    INCOME TAX                                                                                  201              22,669
                                                                                  =============================================
           LOSS FOR THE YEAR BEFORE ABSORPTION                                                     (74,081)           (969,810)
                                                                                  ---------------------------------------------
           ABSORPTION "AD REFERENDUM" OF SHAREHOLDERS' MEETING
           - with Unrealized valuation difference                                                        -             467,588
                                                                                  =============================================
           NET LOSS FOR THE YEAR                                                                   (74,081)           (502,222)
===============================================================================================================================
</TABLE>

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

                                       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"
                      Supplementary Accounting Information
                      Consolidated Statement of Cash Flows
                              For the fiscal year
             commenced January 1, 2003 and ended December 31, 2003
         presented in comparative format with the previous fiscal year
                  (figures stated in thousands of US dollars)

<TABLE>
<CAPTION>
==============================================================================================================================
                                                                                         12.31.03             12.31.02
                                                                                   -------------------------------------------
<S>                                                                                            <C>                   <C>
  Changes in cash
  Cash and due from banks at beginning of fiscal year                                           196,873               320,790
  Increase (decrease) in cash                                                                    85,089              (123,917)
                                                                                   -------------------------------------------
  Cash and due from banks at end of year                                                        281,962               196,873
                                                                                   ===========================================
  Reasons for changes in cash
  Financial income collected                                                                    409,591               389,533
  Income from services collected                                                                147,508                98,412
  Less:
  Financial expenses paid                                                                      (212,094)             (314,474)
  Expenses for services paid                                                                    (22,946)              (19,893)
  Administrative expenses paid                                                                 (157,603)             (177,855)
                                                                                   -------------------------------------------
  Cash provided by (used in) operations                                                         164,456               (24,277)
                                                                                   ===========================================
  Other sources of cash
  Net increase in deposits                                                                      419,261                     -
  Net increase in other liabilities resulting from financial brokerage                                -               943,244
  Net decrease in government and corporate securities                                                 -                67,870
  Net decrease in loans                                                                               -               912,662
  Net decrease in other receivables resulting from financial brokerage                           49,536                47,822
  Net decrease in other assets                                                                        -                79,752
  Other sources of cash                                                                          42,493               431,353
                                                                                   -------------------------------------------
  Total sources of cash                                                                         511,290             2,482,703
                                                                                   -------------------------------------------
  Other uses of cash
  Net increase  in government and corporate securities                                          (72,124)                    -
  Net increase in loans                                                                         (82,714)                    -
  Net increase in other assets                                                                  (36,964)                    -
  Net decrease in deposits                                                                            -            (2,106,231)
  Net decrease in other liabilities resulting from financial brokerage                         (321,222)                    -
  Net decrease in other liabilities                                                              (6,640)              (65,574)
  Cash dividends paid                                                                                 -                  (126)
  Other uses of cash                                                                            (67,892)             (249,621)
                                                                                   -------------------------------------------
  Total uses of cash                                                                           (587,556)           (2,421,552)
                                                                                   -------------------------------------------
  Monetary result of cash and due from banks                                                     (3,101)             (160,791)
==============================================================================================================================
  Increase/(Decrease)  in cash                                                                   85,089              (123,917)
==============================================================================================================================
</TABLE>

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

                                       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"
                      Supplementary Accounting Information
                 Notes to the Consolidated Financial Statements
                              For the fiscal year
             commenced January 1, 2003 and ended December 31, 2003
         presented in comparative format with the previous fiscal year
                  (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 previous year. These financial statements include
               the balances corresponding to the operations carried out by Banco
               de Galicia y Buenos Aires S.A. and its subsidiaries located in
               Argentina and abroad and form part of the annual financial
               statements of that Bank as supplementary information, so they
               should be read in conjunction with them.

               These financial statements give recognition to the effects of the
               changes in the purchasing power of the currency until February
               28, 2003, following the restatement method established by
               Technical Pronouncement No. 6 of the Argentine Federation of
               Professional Councils in Economic Sciences (F.A.C.P.C.E.). As
               established by BCRA Communique "A" 3921, Decree No. 664/2003 of
               the National Executive Branch and General Resolution No. 441/03
               of the CNV, the Company has discontinued the application of that
               method and therefore, it did not recognized the effects of the
               variations in the purchasing power of the currency originated
               since March 1, 2003.

               Under professional accounting standards, application of that
               method remained in effect until September 30, 2003. Resolution MD
               No. 41/03 of the Professional Council in Economic Sciences of the
               Autonomous City of

                                       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 2:        (Continued)

               Buenos Aires (C.P.C.E.C.A.B.A.) established the discontinuation
               of the recognition of the changes in the purchasing power of the
               currency since October 1, 2003.

               During the March-September 2003 period, a deflation rate of
               approximately 2% 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 December 31,
                    2003 and 2002, and the income statements and statements of
                    sources and application of funds or cash flows, as the case
                    may be, as of December 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 (See Note 4 to the consolidated financial
                    statements).

                    The principal investment of the Company is its equity
                    interest in Banco de Galicia y Buenos Aires S.A., a
                    financial institution subject to the BCRA regulations. For
                    this reason the Company has adopted the valuation and
                    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, except as mentioned in point c.1.e. of
                    this Note.

                    The foreign branches' and subsidiaries' financial statements
                    originally issued in foreign currency have been converted
                    into pesos as follows:

                    a. Assets and liabilities have been converted into pesos
                    applying the reference exchange rate released by the BCRA.
                    For those assets and liabilities in US dollars or other
                    foreign currencies

                                       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)

                    encompassed by Decree 214 and complementary rules were
                    converted into pesos as established by that norm.
                    b. The allotted capital was computed in the restated amounts
                    actually disbursed.
                    c. Retained earnings were determined as the difference
                    between assets and liabilities and the allotted capital.
                    d. The result for the year was determined as the difference
                    between retained earnings at beginning of year, net of
                    distributions of profits in cash, and the retained earnings
                    at year end. Income statement account balances were
                    converted into pesos according to the criterion described in
                    point a. above.
                    e. The significant items arising from intercompany
                    transactions among the consolidated entities have been
                    eliminated from the Statement of Financial Condition and the
                    Income Statement.
                    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 balances of Banco de Galicia y Buenos Aires
                    S.A.'s income statement for the previous year 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 that 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.

                    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.

                    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:

                                       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)

                    with prior year retained earnings: US$ 120,725
                    with unrealized valuation difference for the net foreign
                    currency position: US$ 499,637
                    with discretional reserves: US$ 115,080
                    with equity adjustment fund - technical revaluation: US$
                    32,705

               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 (see Note 2.c.2. to the financial statements) and
                    Banco de Galicia y Buenos Aires S.A..

                    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 have been 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, Banco de Galicia y Buenos Aires
                    S.A. 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.

                                       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)

                    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 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 December 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.).

                                       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)

                    II) Holdings of trading securities:
                    These are stated at the closing quotation for each security
                    at year end, plus the value of matured amortization and
                    interest coupons receivable, less estimated selling
                    expenses, where applicable.
                    III) Unlisted:
                    These are valued at the acquisition cost plus income accrued
                    up to year end, where applicable.

                    b.3.b. - Listed Corporate Securities
                    These are valued at the quotation prevailing at year 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

                                       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)

                    US$ 152,453 at the exchange date (November 5, 2001) (see
                    point c.1.d.1.).
                    Subsequently, Decree 644/02 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 to the financial statements - under Section entitled
                    Public Debt).
                    On March 28, 2003, the Argentine Central Bank released
                    Communique "A" 3911 substantially modifying the accounting
                    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 that 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 December 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 December 31, 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$ 67,607
                    to results for this item.

                    b.5. - Accrual of adjustments, interest, exchange rate
                    differences, premiums on future transactions and variable
                    returns

                                       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)

                    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 or
                    the CVS, as the case may be, was accrued at year end.

                    b.6. - Certificates of participation in financial trusts
                    These certificates are recorded at face value plus accrued
                    interest. Non-interest bearing certificates are valued
                    taking into account the participation in net assets and
                    liabilities, as shown in the financial statements of the
                    related trusts.

                    b.7. - Assets Under Financial Leases
                    These are stated at the acquisition cost less accumulated
                    depreciation, plus CER where applicable.

                    b.8. - Equity interests in other companies
                    b.8.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 June 30, 2003 because that company prepares
                    its financial statements on a semi-annual basis and, at the
                    date of these financial statements it company did 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.

                                       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)

                    In valuing the equity interests held in those companies,
                    Banco de Galicia y Buenos Aires S.A. has adjusted the
                    shareholders' equity and results in its 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. Those adjustments led to a decrease of US$
                    12,676 in the shareholders' equity of Tarjetas Regionales
                    S.A. and to an increase of US$ 1,631 in its results, as well
                    as a decrease of US$ 2,045 in the shareholders' equity of
                    Galicia Capital Markets S.A. and to a decrease of US$ 2,511
                    in its results. It should be noted that those effects have
                    been considered by Grupo Financiero Galicia S.A. in these
                    financial statements.
                    Foreign:
                    Banco de Galicia (Cayman) Limited (In Provisional
                    Liquidation) has been valued according to the equity method
                    of accounting, on the basis of financial information
                    originally issued in foreign currency. In the case of Banco
                    Galicia Uruguay S.A., a provision for other contingencies
                    has been set up to cover the deficit reported in its equity,
                    as disclosed in Note 1 to these financial statements under
                    section entitled "Situation of Banco de Galicia y Buenos
                    Aires S.A. - Capitalization.
                    The financial statements of those entities were converted
                    into pesos as mentioned in the fourth paragraph of point a.
                    of this Note, except for the results for the year, which
                    were converted into pesos at the average exchange rate in
                    force in the year in which they were generated.
                    - Minority interests
                    Argentine:
                    Minority interests have been valued at cost restated as
                    mentioned in the fourth paragraph of point a. above of this
                    Note, 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.

                                       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.8.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., Alfer S.A., Galicia Inmobiliaria
                    S.A., Coelsa S.A. Aguas Provinciales de Santa Fe S.A., Aguas
                    Cordobesas S.A., Caminos de la Sierra S.A. and Net
                    Investment S.A. are overstated in relation to their equity
                    value.
                    Under Executive Branch Decree No. 1075, the concession
                    contract of Correo Argentino S.A. has been rescinded. Both
                    the investment in this company and the related receivables
                    have been fully covered by an allowance.
                    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.
                    A valuation allowance has been set up for the investment in
                    Tradecom International NV in the amount that this investment
                    is estimated to exceed its recoverable value.

                    b.9. - 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.

                                       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)

                    The net book values of the assets, taken as a whole, are not
                    in excess of their value to the business.

                    b.10. - 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 point b.9.
                    above.

                    b.11. - 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".
                    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, as described in Note 1 to the financial
                    statements and considering point c.1.d.2. of the notes to
                    consolidated financial statements).

                    b.12. - 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

                                       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)

                    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, "A" 3918 and
                    supplementary ones.

                    b.13. - Shareholders' equity
                    1)The Shareholders' Equity accounts have been restated
                    following the procedure mentioned in Note 2 to these
                    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.
                    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 BCRA Communique "A" 3703, Banco de
                    Galicia y Buenos Aires S.A. recorded 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 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.

                                       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)

                    as of December 31, 2002, that amount had been included in
                    the results for the year.

                    b.14. - Income tax and tax on minimum notional income
                    As of December 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.

                    b.15. - 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 December 31, 2003 the maximum risk faced by Banco de
                    Galicia y Buenos Aires S.A. in respect of dismissal
                    indemnities amounted to approximately US$ 42,339. As of
                    December 31, 2002, the total amount in this respect was US$
                    39,633.

               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

                                       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)

                    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 prepared, the
                    Central Bank had not yet adopted these 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
                    The financial statements of Banco de Galicia y Buenos Aires
                    S.A. 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. 41/2003 of the CPCECABA,
                    under professional accounting standards the application of
                    this method has been discontinued since October 1, 2003.
                    Nevertheless, taking into account that the variation in the
                    IPIM was a deflation rate of approximately 2% during the
                    March-September 2003 period, the effects derived from
                    failure to recognize those variations in the financial
                    statements of Banco de Galicia y Buenos Aires S.A. have not
                    been significant.

                                       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)

                    c.1.b. Allocation of results of the conversion into pesos of
                    the net foreign currency position as of December 31, 2001.
                    During the previous year, Banco de Galicia y Buenos Aires
                    S.A. allocated US$ 499,637 (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.13.2) 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.
                    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. Grupo Financiero Galicia
                    S.A. has adapted this situation to its financial statements,
                    as explained in point b.14. above.

                    c.1.d. Valuation of assets with the non-financial public and
                    private sectors

                                       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 3:        (Continued)

                    c.1.d.1. Secured loans
                    As established by Decree No. 1387/01 during the fiscal year
                    ended December 31, 2001, on November 6, 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 December 31, 2003 and 2002, those loans were recorded
                    in the "Loans to Public Sector" caption.
                    As of December 31, 2002, secured loans were valued at the
                    exchange values established by the Ministry of Economy as of
                    November 6, 2001, plus accrued interest until year end,
                    converted to pesos at the exchange rate of $1.40 = US$ 1 and
                    adjusted by applying the CER.
                    As of December 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 December 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 at the internal rate
                    of return until the end of each year.
                    At that date, the impact of the application of this
                    criterion has been disclosed in point b.4. above.

                    c.1.d.2. Accounting disclosure of effects generated by court
                    decisions on deposits
                    As of December 31, 2003 Banco de Galicia y Buenos Aires S.A.
                    carries an asset for US$166,218 (original value of
                    US$192,799 net of accumulated amortization of US$ 26,580)
                    under Intangible assets - Organization and development
                    expenses, for the differences resulting from compliance with
                    court decisions on reimbursement of deposits within the
                    framework of Law No. 25561, Decree 214/02 and complementary
                    rules, as established by BCRA Communique "A" 3916, to be
                    amortized over 60 months. Under professional accounting
                    standards, such asset is to be recorded as a receivable and
                    valued on the basis of the best estimate of the recoverable
                    amounts.

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

                                       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 3:        (Continued)

                    As of December 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 point
                    b.3.a.I), except where their treatment as investments to be
                    held to maturity applies.
                    At the date the financial statements of Banco de Galicia y
                    Buenos Aires S.A. 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. At the date these financial
                    statements were prepared, the parity value of BODEN 2012 is
                    approximately 60% of their face value.

                    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.1.e. - Conversion of financial statements
                    The conversion to pesos of the financial statements of the
                    foreign branches for purposes of consolidation with the
                    Bank's financial statements differs from applicable
                    professional accounting standards (Technical Pronouncement
                    No. 18). These standards require that:
                    (a) the measurements in the financial statements to be
                    converted to pesos that are stated in year-end foreign
                    currency (current values, recoverable values) be converted
                    at the balance sheet date exchange rate; and that
                    (b) the measurements in the financial statements to be
                    converted to pesos that are stated in foreign currency of
                    periods predating the closing date (for

                                       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 3:        (Continued)

                    example: those which represent historical costs, income,
                    expenses) be converted at the pertinent historical exchange
                    rates, restated in year-end currency, when it is so required
                    due to the application of Technical Pronouncement No. 17.
                    Exchange differences arising from conversion of the
                    financial statements will be treated as financial income or
                    costs, as the case may be.
                    The application of this criterion, instead of that mentioned
                    in point a. above does not have a significant impact on the
                    disclosure of the Bank's financial statements.

                    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. In
                    this connection, in its quarterly financial statements (at
                    March 31, June 30 and September 30) 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
                    accordance with current Argentine Central Bank regulations,
                    that Bank presents the information in that statement in
                    comparative format with the same statement at the closing
                    dates of the same periods of the immediately preceding
                    fiscal year. It should be noted that this difference in
                    regulations is not applicable to annual financial
                    statements.

                    c.2.b. Restatement to constant currency of the comparative
                    financial statements
                    As established by MD Resolution No. 41/03 of the CPCECABA,
                    the December 31, 2002 financial statements, presented for
                    comparative purposes, should have been restated into uniform
                    currency of September 30, 2003, as established by applicable
                    Technical Pronouncement No. 6 of the FACPCE. As mentioned in
                    the notes to its financial statements, those 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.

                                       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 3:        (Continued)

               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 December 31,
               2003.

NOTE 4:        BASIC INFORMATION CONCERNING THE CONSOLIDATED CONTROLLED ENTITIES

               The basic information concerning the controlled entities is
               disclosed in Note 10 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.

               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 December 31, 2003, Net Investment S.A.
               held the following percentages of equity interests:

<TABLE>
<CAPTION>
=========================================================== ================= ================
                     ISSUING COMPANY                          % OF CAPITAL      % OF VOTES
----------------------------------------------------------- ----------------- ----------------
<S>                                                                  <C>             <C>
B2Agro S.A.                                                          99.99           99.99
=========================================================== ================= ================
</TABLE>

               The financial statements of Sudamericana Holding S.A. have been
               adapted to cover a twelve-month period as of December 31, 2003,
               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 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.),
               Sudamericana Asesores de Seguros S.A. and Galicia Patrimoniales
               Compania de Seguros S.A.. As of September 30, 2003, Sudamericana
               Holding S.A. held the following equity percentages:

                                       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 4:        (Continued)

<TABLE>
<CAPTION>
=========================================================== ================= ================
                     ISSUING COMPANY                          % OF CAPITAL      % OF VOTES
----------------------------------------------------------- ----------------- ----------------
<S>                                                                    <C>              <C>
Aseguradora de Personas Galicia S.A. (formerly Hartford                    -                -
Seguros de Vida S.A.) (*)
----------------------------------------------------------- ----------------- ----------------
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
----------------------------------------------------------- ----------------- ----------------
Galicia Patrimoniales Cia. de Seguros S.A. (**)                        99,99            99,99
=========================================================== ================= ================
</TABLE>

               (*) On June 26, 2003, through Resolution 29319 the National
               Insurance Superintendency (SSN) approved the merger by absorption
               and revoked Aseguradora de Personas Galicia S.A.'s authorization
               to operate as an insurer, Galicia Vida Cia. de Seguros S.A. being
               the merging company.
               (**) On November 4, 2003, through Resolution 29556 the SSN
               authorized Galicia Patrimoniales Compania de Seguros S.A. to
               operate on the market.

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

<TABLE>
<CAPTION>
==================================================================================================
                                    as of December 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.           250,000        100.00        100.00
                                           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
========================================== =============== ============= ============ =============
</TABLE>

                                       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 4:        (Continued)

<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>
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, 2003
-----------------------------------------------------------------------------------------------------
            ISSUING COMPANY                 ASSETS     LIABILITIES    SHAREHOLDERS'       RESULTS
                                                                          EQUITY
------------------------------------------ ----------- ------------- ------------------ -------------
<S>                                           <C>           <C>              <C>              <C>
BANCO GALICIA URUGUAY S.A.                    551,226       796,302          (245,076)        23,555
------------------------------------------ ----------- ------------- ------------------ -------------
TARJETAS REGIONALES S.A. (*)                  262,181       253,508              8,673        15,242
------------------------------------------ ----------- ------------- ------------------ -------------
GALICIA CAPITAL MARKETS S.A. (*)                6,075         8,189            (2,114)       (7,554)
------------------------------------------ ----------- ------------- ------------------ -------------
GALICIA FACTORING Y LEASING S.A.                1,060             8              1,052         (486)
------------------------------------------ ----------- ------------- ------------------ -------------
AGRO GALICIA S.A.                                  56             2                 54          (22)
------------------------------------------ ----------- ------------- ------------------ -------------
GALICIA VALORES S.A. SOC. DE BOLSA              8,981         5,178              3,803         (137)
========================================== =========== ============= ================== =============
</TABLE>

               (*) See Note 3b.7.a. to the consolidated financial statements.

<TABLE>
<CAPTION>
=====================================================================================================
                                      As of December 31, 2002
-----------------------------------------------------------------------------------------------------
            ISSUING COMPANY                 ASSETS     LIABILITIES    SHAREHOLDERS'       RESULTS
                                                                          EQUITY
------------------------------------------ ----------- ------------- ------------------ -------------
<S>                                           <C>         <C>                <C>           <C>
BANCO GALICIA URUGUAY S.A.                    919,528     1,227,542          (308,014)     (573,427)
------------------------------------------ ----------- ------------- ------------------ -------------
TARJETAS REGIONALES S.A.                      218,413       224,982            (6,569)     (114,638)
------------------------------------------ ----------- ------------- ------------------ -------------
GALICIA CAPITAL MARKETS S.A.                   13,315         7,405              5,910       (2,900)
------------------------------------------ ----------- ------------- ------------------ -------------
GALICIA FACTORING Y LEASING S.A.                2,315           265              2,050         (567)
------------------------------------------ ----------- ------------- ------------------ -------------
AGRO GALICIA S.A.                                  80             4                 76         (191)
------------------------------------------ ----------- ------------- ------------------ -------------
GALICIA VALORES S.A. SOC. DE BOLSA              5,387         1,447              3,940         1,004
========================================== =========== ============= ================== =============
</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..

               The financial statements of Banco Galicia Uruguay S.A. include
               the balances of the special balance sheet, income statement and
               statement of cash flows of the Company, which have been
               consolidated on a line-by-line basis with the special balance
               sheet, income statement and statement of cash flows of Banco de
               Galicia (Cayman) Limited (In Provisional Liquidation), in which
               Banco Galicia Uruguay S.A. holds 65.3405% of its capital stock
               and Banco de Galicia y Buenos Aires S.A., the remaining 34.6595%.
               The latter statements have been consolidated with those of
               Galicia Pension Fund Limited, in which Banco de Galicia (Cayman)
               Limited (In Provisional Liquidation) holds a 100% participation.

                                       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 4:        (Continued)

               Furthermore, Galicia Pension Fund Limited consolidates its
               financial statements with those of Galicia Administradora de
               Fondos S.A. Sociedad Gerente, in which it holds 99.985% of its
               capital stock.

               The information for the previous year, presented for comparative
               purposes, as well as the figures of those subsidiaries have been
               modified, according to pro forma information held at Banco de
               Galicia y Buenos Aires S.A.

               The December 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                             12.31.03                  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>

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

<TABLE>
<CAPTION>
============================================ ========================= ===========================
                 Company                            12.31.03                   12.31.02
-------------------------------------------- ------------------------- ---------------------------
<S>                                                    <C>                        <C>
Tarjeta Comfiar S.A.                                   32%                        32%
============================================ ========================= ===========================
</TABLE>

               Tarjeta Naranja S.A. financial statements for both years 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.

                                       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 4:        (Continued)

               The financial statements of Galicia Capital Markets S.A., used
               for purposes of consolidation, have been consolidated on a
               line-by-line basis with the financial statements of Galicia
               Advent Corporation Limited, in which that company holds a 57.89%
               equity interest.

               Banco de Galicia y Buenos Aires S.A. holds 99% of the capital
               stock of Agro Galicia S.A. and Galicia Capital Markets, the
               remaining 1%.

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

<TABLE>
<CAPTION>
============================================== ========================= =========================
                   Company                             12.31.03                  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%
---------------------------------------------- ------------------------- -------------------------
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.                      0.80199%                  0.80190%
---------------------------------------------- ------------------------- -------------------------
Sudamericana Asesora de Seguros S.A.                   0.83482%                     -
---------------------------------------------- ------------------------- -------------------------
Galicia Patrimoniales Cia. de Seguros S.A.             0.81002%                     -
============================================== ========================= =========================
</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:

                                       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 5:        (Continued)

<TABLE>
<CAPTION>
============================================================= ================= ==================
                           Company                                 12.31.03          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%             0.015%
Comunes de Inversion
------------------------------------------------------------- ----------------- ------------------
Agro Galicia S.A.                                                    -                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%
------------------------------------------------------------- ----------------- ------------------
Cobranzas Regionales S.A.                                        19.904%            19.904%
============================================================= ================= ==================
</TABLE>

NOTE 6:        RESTRICTED ASSETS

               As of December 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:

               a. Funds and Government Securities

               The amount of US$ 13,676 has been deposited in escrow as a
               guarantee towards third parties.

               Furthermore, as of December 31, 2003, BODEN 2012 for US$ 62,178
               (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. Guarantees provided as security for direct obligations:

               As of December 31, 2003 the Bank records guarantees provided as
               security for direct obligations for US$ 80,724 in memorandum
               accounts, as a result of commitments undertaken under the
               portfolio assignment and/or sale contracts signed with Galicia
               Creditos Hipotecarios Financial Trust and Citibank N.A. Buenos
               Aires Branch. According to those contracts, the Bank undertakes
               to repurchase and replace the receivables assigned with others of
               similar characteristics in the event of
               default.

                                       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 6:        (Continued)

               c. 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 December 31, 2003
               amounted to US$ 23,380.

               d. Deposits in favor of the Argentine Central Bank

               These have been set up in line with Argentine Central Bank
               regulations:

               - Communique "A" 1190                      US$        182
               - Communique "A" 2923                      US$      1,278

               e. Fund for assistance to financial institutions

               As of December 31, 2003 Banco de Galicia y Buenos Aires S.A. had
               deposited secured loans for US$ 63,397 in guarantee of the Fund
               for assistance to Financial Institutions.

               f. Guarantees provided to the Argentine Central Bank

               As of December 31, 2003, Banco de Galicia y Buenos Aires S.A. has
               transferred loans to the public sector in favor of the Argentine
               Central Bank, as collateral for advances of US$ 1,932,776 for
               assistance received to cover temporary lack of liquidity.

               g. 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 favor 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.

               Under the sponsorship contract, the Bank is liable for 14.53% of
               the financial debt held by Correo Argentino S.A. with its
               financial creditors, in the event of early termination of the
               concession for any reason or title, including bankruptcy.

               On November 19, 2003, the National State rescinded the concession
               contract awarded to Correo Argentino S.A.. On December 16, 2003,
               this company was declared bankrupt. This is not a final judgment,
               so it has been appealed.

                                       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 6:        (Continued)

               At the date of these financial statements, no claims have been
               received from the financial creditors.

               The Bank has provided for the amount it estimates it will be
               required to pay for this contingency.

               "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.
               - 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, which have been recognized under Memorandum
               Accounts - Guarantees provided as security for Direct
               Obligations.

               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 Bank considers that Aguas
               Provinciales de Santa Fe S.A.'s request should not be admitted
               because in its opinion, no obligation remains unmet.

                                       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 6:        (Continued)

               In view of a notification of a deficit in funds by Aguas
               Provinciales de Santa Fe S.A., on November 5, 2003 a loan for an
               amount equivalent to US$ 329 was granted, under the terms of the
               contract signed with the International Finance Corporation.

               Banco de Galicia y Buenos Aires S.A. has covered with a provision
               the amount it estimates will be required to pay for these
               contingencies.

               At December 31, 2002, the total amount of restricted assets was
               US$ 2,031,068.

               In addition, as of December 31, 2003 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 December 31, 2003 this company held three shares of Mercado
               de Valores de Buenos Aires S.A. securing an insurance covering
               its transactions for US$ 1,536. At the end of the previous year,
               restricted assets totaled US$ 1,446

               b. Tarjetas Cuyanas S.A.

               As of December 31, 2003, Banco de Galicia y Buenos Aires S.A.'s
               ability to dispose of time deposits for US$ 190 was restricted
               because this amount was earmarked to secure a Collection
               Agreement signed with the Revenue Board of the Province of
               Mendoza.

               c. Banco Galicia (Cayman) Limited (In Provisional Liquidation)

               On January 3, 2003 an attachment was levied on the Entity's
               receivables from Banco Galicia Uruguay S.A., for a total amount
               of US$ 1,014 (including legal expenses), which should have been
               transferred to the Entity in payment of the second installment of
               that credit. The pertinent defenses have been filed before the
               courts to safeguard the Entity's interests, therefore such item
               has been recognized under "Sundry receivables". At the date of
               these financial statements, Banco de Galicia (Cayman) Limited (In
               provisional liquidation) had not yet collected the amount of
               those receivables. Furthermore, the lower court decision was
               favorable to the Entity, so it is believed that the Appellate
               Court will also rule in favor of that Entity.

                                       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 6:        (Continued)

               d. Banco Galicia Uruguay S.A.:

               At the request of creditors of Banco Galicia Uruguay S.A., a
               restraining order has been issued enjoining this entity from
               disposing of its real property.

               Under a security interest agreement signed on July 24, 2003 and
               registered with the Registry of Movable Property - Pledges
               Division - Montevideo- Uruguay on August 5, 2003, the rights to
               collect debts from all debtors have been pledged as collateral in
               favor of the holders of transferable time deposit certificates
               and/or negotiable obligations issued in compliance with the
               debtor reorganization plan approved.

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                          27         07.07.07 (2)
-------------------------------------------------------------------------------------------------------------------
         09.20.02          Tarjeta Naranja S.A. I                              2,023         05.31.10 (3)
-------------------------------------------------------------------------------------------------------------------
         09.20.02          Tarjetas Cuyanas S.A. I                               270         05.31.10 (3)
-------------------------------------------------------------------------------------------------------------------
         10.31.02          Tarjetas Cuyanas S.A. II                               95         05.31.10 (3)
-------------------------------------------------------------------------------------------------------------------
         02.07.03          Tarjeta Naranja S.A. II                               449         01.31.11 (3)
-------------------------------------------------------------------------------------------------------------------
</TABLE>

               b) Administration Trust Agreements

               Purpose: to administer and exercise the financial ownership of
               the trust assets.

                                       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 7:        (Continued)

<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------------------------------------
      Contract date                        Trustor                     Trust fund balance          Due date
                                                                          Thousands of
                                                                              US$
-------------------------------------------------------------------------------------------------------------------
         <S>                     <C>                                          <C>                <C>
         12.23.02                Coca-Cola de Argentina S.A.                  644                12.31.04 (3)
----------------------------------------------------------------------------------------------------------------------
</TABLE>

               (1) The contract shall remain in force until its purpose has been
               complied with.
               (2) These amounts will be released upon maturity or when the Bank
               receives instructions in accordance with contract stipulations.
               (3) 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 December 31, 2003, Banco de Galicia y Buenos Aires
               S.A. had the following negotiable obligation issues outstanding:

<TABLE>
<CAPTION>
=================== ============= =============== ============== =============== ====================
                                                                                  ISSUE AUTHORIZED
   ISSUE DATE       FACE VALUE      RESIDUAL          TERM           RATE         BY THE NATIONAL
                                      VALUE                                          SECURITIES
                                      (**)                                           COMMISSION
------------------- ------------- --------------- -------------- --------------- --------------------
    <S>             <C>              <C>            <C>             <C>               <C>
    11.08.93        200,000 (*)      65,898         10 years        9.00 %            10.08.93
=================== ============= =============== ============== =============== ====================
</TABLE>

               (*)This issue has fallen due.

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

<TABLE>
<CAPTION>
=================== ============= =============== ============== =============== ====================
                                                                                  ISSUE AUTHORIZED
   ISSUE DATE       FACE VALUE      RESIDUAL          TERM           RATE         BY THE NATIONAL
                                      VALUE                                          SECURITIES
                                      (**)                                           COMMISSION
------------------- ------------- --------------- -------------- --------------- --------------------
    <S>             <C>              <C>           <C>                <C>           <C>
    08.07.97        150,000 (*)      48,157        1,825 days         (1)           08.02.93 and
                                                                                      12.20.94
=================== ============= =============== ============== =============== ====================
</TABLE>

                                       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)

               (1) On the interest payment dates falling due in August 2002 or
               before, Libor plus 1.875%
               (*) This issue has fallen due.
               (**) Certain holders of the negotiable obligations detailed in
               points a1) and a2), which were in turn debtors of the Bank for
               due and payable liquid obligations, have exercised the right
               under Sections 818 and related provisions of the Argentine Civil
               Code, requering the Bank to settle its debts by offsetting them
               against its receivables for the negotiable obligations. The Bank
               had to accept this offsetting, under the conditions established
               by Law.

               On December 23, 2003, the Bank made an offer to refinance its
               negotiable obligations due in 2002 and 2003, as detailed in
               points a1) and a2), for new negotiable obligations, cash, BODEN
               2012 and/or preferred shares in Grupo Financiero Galicia,
               according to the terms of the offer. This offer is encompassed by
               the Global Program created at the Ordinary Meeting of
               Shareholders held on September 30, 2003, as mentioned in point
               a4).

               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 December 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 last four past
               due services remaining unpaid at the date of these financial
               statements.
               (**) Negotiable obligations in normal situation, issued as a
               result of the restructuring of the debt of the New York Branch,
               but not included in the restructuring of the debt of Banco de
               Galicia y Buenos Aires S.A..

               a.4) The Ordinary Meeting of Shareholders held on December 31,
               2003 approved the creation of a Global Program for the issuance
               and reissuance of ordinary negotiable obligations, not
               convertible into shares, whether subordinated or not, secured or
               unsecured, for a maximum nominal amount of US$ 2,000,000 or its
               equivalent in any other currency,

                                       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)

               outstanding at any time during the life of the Program, as
               determined by the Board of Directors, for a maximum term of five
               years counted as from the authorization of the Program by the
               National Securities Commission (CNV) or for any other longer term
               the CNV may authorize pursuant to regulations. The proceeds of
               the placement of the negotiable obligations to be issued under
               the Program will be used to refinance the liabilities governed by
               foreign laws.

               As of December 31, 2003 and 2002, the amount of the negotiable
               obligations in respect of principal and interest, net of
               discounts, was US$ 561,719 and US$ 640,484, respectively, and was
               used in accordance with the provisions of the Negotiable
               Obligations Law and BCRA regulations 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 current
               regulations.

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

               Below is disclosed the situation of each company in relation to
               third parties' debts as of December 31, 2003, and the valuation
               criteria followed:

               Tarjetas Cuyanas S.A.:

               On May 23 and October 31, 2002, that company entered into two
               agreements for the redemption of its Negotiable Obligations
               through the issue of debt certificates.

               At the end of the fiscal year ended December 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$ 1,450, respectively, the residual value at year
               end amounting to US$2,880 thousand. At that date, Tarjetas
               Cuyanas S.A. has valued these debts at approximately US$ 2,204, a
               figure obtained by applying the present value method to the
               future discounted cash flows, as established by CNV Resolution
               No. 434/03.

                                       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 8:        (Continued)

               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,
               Tarjetas Cuyanas S.A. records due and payable negotiable
               obligations amounting to approximately US$ 3,377 as of December
               31, 2003, of which US$ 3,180 are in the hands of the minority
               shareholders, with whom the issuance of a new series in pesos is
               being negotiated for a term of one year, converting the nominal
               values due at a conversion rate of $1.9 per US dollar. At that
               date, Tarjetas Cuyanas S.A. had valued this debt by approximately
               US$ 2,139, 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$ 1,202 would be generated at year end.

               The maximum risk associated with the situations described in
               relation to the financial statements of Tarjetas Regionales S.A.
               and Banco de Galicia y Buenos Aires S.A. amounts to US$ 722.

               Tarjetas del Mar S.A.:

               As of December 31, 2003, the debt certificates issued by the
               Company and accepted by most holders of obligations in order to
               redeem negotiable obligations amounted to US$ 15,000 (face
               value).

                                       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 8:        (Continued)

               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.

               As of December 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$ 842. The Board of Directors of
               the Company has valued the negotiable obligations as of December
               31, 2003, as follows: US$ 662 (face value) at the exchange rate
               of US$ 1 = $ 1, plus CER, and US$ 180 (face value), at the
               exchange rate of US$ 1 = $ 1.40. If all the due and payable
               negotiable obligations as of December 31, 2003 were to be valued
               at the free US dollar exchange rate, an additional loss of
               approximately US$ 427 would be generated at year end.

               The maximum risk attaching to these situations, which could have
               an impact on the financial statements of Tarjetas Regionales S.A.
               and Banco de Galicia y Buenos Aires S.A., amounted to
               approximately US$ 427.

               Tarjeta Comfiar S.A.:

               On August 4, 2003 Tarjeta Comfiar S.A. requested from the CNV and
               the Buenos Aires Stock Exchange the delisting from the public
               offering regime and the revocation of the approval of the short
               and medium-term Global negotiable obligation issue program for up
               to US$ 50,000, as it was not the company's intention to issue new
               negotiable obligations and it had no outstanding negotiable
               obligations.

               The Buenos Aires Stock Exchange revoked the approval of the
               mentioned global program through a letter dated August 8, 2003
               and the CNV authorized the delisting from the public offering
               regime through Resolution No. 14619 dated September 11, 2003.

               As of December 31, 2003, Banco de Galicia y Buenos Aires S.A. has
               settled its liabilities for negotiable obligations.

                                       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 8:        (Continued)

               Tarjeta Naranja S.A.:

               On May 23, 2002, 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 December 31,
               2003, holders of negotiable obligations had adhered to those
               agreements in the amount of US$ 69,577, the residual value of
               those negotiable obligations amounting to US$ 46,028 at year end,
               due to amortization for the year.

               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, assuming a discount rate
               equivalent to an annual effective rate (TEA) of 11% as a premise.

               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$ 42,300
               (including principal and interest).

               As of December 31, 2003, the overdue balance of the Global
               Negotiable Obligation Program not yet collected by their holders
               amounted to US$ 1,954.

               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$ 977, are expected
               to be redeemed in cash applying the US$1=$1 exchange rate, plus
               CER, and the remaining 50% is expected to be exchanged for debt
               securities, so they were valued applying the same procedure as
               that described above for debt certificates, a present value of
               US$ 896 being determined. If all the due and payable negotiable
               obligations amounting to $ 2,626 were valued at the free US
               dollar exchange rate as of December 31, 2003, an additional loss
               of approximately US$ 572 would be generated at year end.

               The maximum risk attaching to the situations described, which
               could have an impact on the consolidated financial statements of
               Tarjetas Regionales S.A. and Banco de Galicia y Buenos Aires S.A.
               amounts to US$ 458.

               On February 6, 2003 the Board of Directors of Tarjeta Naranja
               S.A. approved the issuance of Series II Debt Certificates for US$
               15,000 secured by a Trust, with similar characteristics to the
               Agreement entered into on May 23, 2002 for the redemption of
               negotiable obligations Series

                                       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 8:        (Continued)

               XXVII. On February 7, 2003 that Agreement was entered into and
               fully subscribed. This debt has been settled in monthly
               installments with 1% of collections since February 1, 2003, for
               eight years counted as from the earlier of that date or until the
               certificates subscribed are fully amortized. At year end, the
               residual value amounted to US$ 11,350.

               Those Debt Certificates were valued by determining the present
               value of the discounted cash flows, converted at year-end
               exchange rate, assuming a discount rate equivalent to an annual
               effective rate (TEA) of 11% as a premise. The application of the
               present value method to this financial debt, established 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 a present value of US$ 10,286 (principal) and
               US$ 19 (interest) which, valued at year-end exchange rate
               represents a principal amount of thousand $ 30,137 plus interest
               for thousand $ 56.

               In the financial statements of Grupo Financiero Galicia S.A., the
               maximum risk attaching to the situations described would amount
               to approximately US$ 1,503.

               Restructuring of the debt held by the credit card management
               companies with Banco de Galicia y Buenos Aires S.A:

               On June 26, 2003, the minority shareholders of Tarjeta Naranja
               S.A. undertook to make an irrevocable contribution of US$ 1,706
               subject to the conditions precedent that the majority shareholder
               makes an irrevocable contribution of US$ 6,826 under the same
               conditions and agrees with Banco Galicia y Buenos Aires S.A. to
               restructure the liabilities held with that entity. On July 18,
               2003, Tarjeta Naranja S.A. paid Banco de Galicia y Buenos Aires
               S.A. all interest accrued at that date on the bank debt of US$
               27,304. This debt fell due on February 12, 2003.

               On August 4, 2003, Banco de Galicia y Buenos Aires S.A. approved
               the restructuring of Tarjetas Cuyanas S.A.'s financial debt of
               US$ 3,413. The conditions for restructuring this financial debt
               are the following: a term of one year, interest payable at the
               Survey rate established by the BCRA, plus an annual rate of 2%.
               At year end, the balance, net of early settlements, amounted to
               $ 3,131.

               On January 15, 2004 the BCRA was informed and made no
               observations on the proposal for the restructuring of financial
               liabilities held with Banco de Galicia y Buenos Aires S.A. by
               Tarjeta Naranja S.A., Tarjeta Comfiar S.A., merged into Tarjeta
               Naranja S.A. as from January 1, 2004, and

                                       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 8:        (Continued)

               Tarjetas del Mar S.A. Such proposal is subject to the merger
               between Tarjeta Naranja S.A. and Tarjetas del Mar S.A., a
               corporate reorganization that must be dealt with and approved by
               the respective Meetings of Shareholders and consummated before
               June 30, 2004.

               On January 28, 2004 the Meeting of Shareholders and the Board of
               Directors of Tarjeta Naranja S.A. approved the "Debt
               Restructuring Plan", consisting of the renegotiation of the terms
               and conditions of the outstanding debt with Banco de Galicia y
               Buenos Aires S.A. and Banco de Galicia y Buenos Aires S.A. -
               Cayman Branch and the acceptance of irrevocable contributions for
               US$ 8,532. This Plan is summarized as follows:

               Debt for Series XXVII negotiable obligations for US$ 8,842 plus
               interest: the proposal to make irrevocable contributions for US$
               8,532 on account of future subscriptions of shares submitted by
               Banco de Galicia y Buenos Aires S.A. and the minority
               shareholders of Tarjeta Naranja S.A. was accepted. The balance
               will be fully repaid by Tarjeta Naranja S.A..

               Tarjeta Naranja S.A. will issue peso-denominated Debt Securities
               ("TD") for US$ 56,997 secured by a Trust, payable over a maximum
               term of six years and a half, with monthly amortization of
               principal and monthly interest payments on balances due, at an
               adjusted Survey Rate improved by 2 % ("Trust III"). The trust
               guarantee would be the higher of 2 % of the monthly cash flows of
               Tarjeta Naranja S.A., or 1.28205% of the face value of TD plus
               interest.

               Tarjeta Naranja S.A. will transfer the TD to a new trust ("Trust
               IV"), which will issue two Certificates of Participation ("TP"),
               one "TPA" for US$ 34,130 and another "TPB" for US$ 22,867. The
               method of servicing under this Trust IV is subject to the same
               conditions as those stipulated under Trust III.

               The "TPA" will be exchanged for past due and outstanding loans
               granted by Banco de Galicia y Buenos Aires S.A. to Tarjeta
               Naranja S.A. and Tarjeta Comfiar S.A. (already merged into
               Tarjeta Naranja S.A.) for US$ 34,130 (including principal and
               interest on both loans).

               The debt of US$ 22,423 plus interest held byTarjeta Comfiar S.A.
               (already merged into Tarjeta Naranja S.A.) with Banco de Galicia
               y Buenos Aires S.A. - Cayman Branch will be settled as follows:
               i) Banco de Galicia y Buenos Aires S.A. will grant Tarjeta
               Naranja S.A., a peso-denominated loan for US$ 22,867, and ii) the
               balance will be fully repaid by Tarjeta Naranja S.A..

                                       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 8:        (Continued)

               This US$ 22,867 loan granted to Tarjeta Naranja S.A. will be
               repaid to Banco de Galicia y Buenos Aires S.A. through the
               delivery of "TPB".

               At the same time, Tarjetas del Mar S.A. will restructure its debt
               with Banco de Galicia y Buenos Aires S.A and Banco de Galicia y
               Buenos Aires S.A - Cayman Branch, an outstanding debt of around
               US$ 4,096 continuing to be held with Banco de Galicia y Buenos
               Aires S.A. after an irrevocable capital contribution of US$
               17,406 has been made. As part of this agreement, Tarjeta Naranja
               S.A. and Tarjetas del Mar S.A. will jointly and severally assume
               the commitment to repay the debt.

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 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.

                                       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 9:        (Continued)

               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 December
               31, 2003 the normal contribution to the Deposit Insurance Fund
               amounted to US$ 94,039, of which US$ 4,340 correspond to the
               current year.

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 year 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.

               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

                                       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 10:       (Continued)

               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. In the case of Grupo Financiero Galicia S.A., see
               Note 12 to the financial statements.

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

               -Resolution No. 368/01

               The Bank's equity as of December 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",
               Banco de Galicia y Buenos Aires S.A. has a total of 203,245,661
               units under custody for a market value of US$ 65,325 as of
               December 31, 2003, 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. totaled 155,298,672 units and their
               market value amounted to US$ 21,454.

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

                                       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 12:       (Continued)

               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 against
               Banco de Galicia y Buenos Aires S.A., 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 or make
               verifications on the grounds of article 17, clause f) of Law
               19,322 until a final judgment is issued about whether this
               supposed claim is applicable.

               This latter measure is firm and was confirmed by the National
               Social Security Court (Panel II).

               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. Considering that a risk exists as to the interpretations
               that courts may make of this dispute, the Bank has agreed to a
               settlement regarding those disputed or doubtful rights, without
               this involving any recognition of rights. This settlement has
               been approved by the Federal Court of First Instance on
               Administrative Litigation Matters No. 4, in the case identified
               above, which will reduce the potential risk to which the Bank
               would be exposed if an unfavorable resolution were to be issued.

                                       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 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$ 683) for
               each institution, based on the number of non-compliance 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 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

                                       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 13:       (Continued)

               become final, the adverse effect 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. This would not affect
               significantly the equity of Banco de Galicia y Buenos Aires S.A.

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

               As of December 31, 2003 and 2002, Banco de Galicia y Buenos Aires
               S.A. held debt securities and certificates of participation in
               its portfolio for US$ 220,527 and US$ 234,184, respectively.

NOTE 15:       SETTING UP OF THE "GALTRUST II 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

                                       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"
           Notes to the Consolidated Financial Statements (Continued)
                  (figures stated in thousands of US dollars)

NOTE 15:       (Continued)

               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 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 December 31, 2003, Banco de Galicia y Buenos Aires S.A. and
               Banco de Galicia Uruguay S.A. held in their portfolio US$ 7,734
               and US$ 15,737, respectively.

NOTE 16:       GALICIA 2004 AND 2005 TRUSTS

               Under the "Framework Trust Agreement" signed with First Trust of
               New York (the trustee), the Bank, in its capacity as trustor, has
               created "Galicia 2004 Trust" to implement an incentive program in
               favor of certain executives of the Bank, to be determined from
               time to time by the Board of Directors. For that purpose, the
               amount of US$ 4,000 was transferred to the trustee, which was
               used for the purchase of shares in Grupo Financiero Galicia.

               On November 19, 2001, specific beneficiaries were assigned
               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.

               On June 15, 2003 Galicia 2004 Trust was terminated in advance,
               the shares and ADSs having been delivered to the beneficiaries
               designated

                                       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"
           Notes to the Consolidated Financial Statements (Continued)
                  (figures stated in thousands of US dollars)

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 year is as follows:

<TABLE>
<CAPTION>
==================================================================================================
                                                                    12.31.03         12.31.02
                                                              ----------------------------------
  ASSETS
                                                              ----------------------------------
  <S>                                                                <C>             <C>
  LOANS                                                              3,748,724       3,645,791
                                                              ----------------------------------
  -To the non-financial public sector                                2,662,304       2,624,581
  -To the financial sector                                              66,448          46,010
  -To the non-financial private sector and residents abroad          1,421,786       1,549,205
    -Overdraft facilities                                               74,711          77,469
    -Notes                                                             473,640         527,053
    -Mortgage loans                                                    245,595         294,868
    -Pledge loans                                                       18,650          65,370
    -Consumer loans                                                     18,831          40,951
    -Credit card loans                                                 279,467         199,640
    -Others                                                            133,417         140,627
    -Accrued interest and quotation differences receivable             178,526         207,671
    -Documented interest                                                 (848)         (3,697)
    -Unallocated collections                                             (203)           (747)
  -Allowances for loan losses                                        (401,814)       (574,005)
                                                              ----------------------------------
  OTHER RECEIVABLES RESULTING FROM FINANCIAL BROKERAGE               2,115,156       3,158,942
                                                              ----------------------------------
  -Argentine Central Bank                                               23,838          19,081
  -Amounts receivable for spot and forward sales to be
    settled                                                                  -             656
  -Securities to be received under spot and forward
   purchases to be settled                                                  47             230
  -Unlisted negotiable obligations                                      35,424          45,159
  -Others not included in the debtor classification
   regulations                                                       1,957,837       2,862,737
  -Others included in the debtor classification regulations            105,255         235,452
  -Accrued interest receivable not included in the debtor
  classification regulations                                            27,016           2,454
  -Accrued interest receivable included in the debtor
   classification regulations                                              554           8,305
  -Allowances                                                         (34,815)        (15,132)
  ==============================================================================================
</TABLE>

                                       54
<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>
==================================================================================================
                                                                  12.31.03          12.31.02
                                                               -----------------------------------
  <S>                                                                <C>               <C>
  LIABILITIES
                                                               -----------------------------------
   DEPOSITS                                                          1,905,800         1,777,937
                                                               -----------------------------------
   -Non-financial public sector                                          4,236             2,671
   -Financial sector                                                     6,642             1,005
   -Non-financial private sector and residents abroad                1,894,922         1,774,261
     -Current accounts                                                 397,168           246,878
     -Savings accounts                                                 279,484           192,446
     -Time deposits                                                    968,765           827,015
     -Investment accounts                                                   63                 -
     -Others                                                           182,125           379,168
     -Accrued interest and quotation differences payable                67,317           128,754
                                                               -----------------------------------
   OTHER LIABILITIES RESULTING FROM FINANCIAL BROKERAGE              5,153,385         5,587,361
                                                               -----------------------------------
   -Argentine Central Bank                                           2,775,734         2,766,574
     -Rediscounts to cover lack of liquidity                         1,904,429         1,860,027
     -Others                                                           871,305           906,547
   -Banks and international entities                                   933,611         1,086,931
   -Unsubordinated negotiable obligations                              816,692         1,182,437
   -Amounts payable for spot and forward purchases to be
    settled                                                                  -               728
   -Securities to be delivered under spot and forward sales
    to be settled                                                       33,995            42,502
   -Loans from domestic financial institutions                          44,970            68,693
   -Others                                                             342,616           344,192
   -Accrued interest and quotation differences payable                 205,767            95,304
==================================================================================================
</TABLE>

NOTE 18:       SITUATION OF CERTAIN COMPANIES CONSOLIDATED WITH BANCO DE GALICIA
               Y BUENOS AIRES S.A.

               On September 15, 2003, the Board of Directors of Tarjeta Comfiar
               S.A. and Tarjeta Naranja S.A. signed a preliminary merger
               agreement involving the two companies, whereby Tarjeta Comfiar
               S.A. would merge into Tarjeta Naranja S.A.. Under this agreement,
               as from January 1, 2004 these companies shall jointly conduct the
               corporate business to take greater advantage of existing
               resources. The Preliminary Merger Agreement was approved by the
               Extraordinary Meetings of Shareholders of Tarjeta Comfiar S.A.
               and Tarjeta Naranja S.A., held on October 2, 2003.

               The Final Merger Agreement was signed on November 14, 2003. Since
               that date, the Board of Directors of Tarjeta Naranja S.A. has
               assumed responsibility for the administration and representation
               of Tarjeta Comfiar S.A..

               As of December 31, 2003, Tarjeta Comfiar S.A., Tarjetas del Mar
               S.A., and Galicia Capital Markets S.A. reported deficits in their
               equity, and this situation is subject to the provisions of
               Section 94, subsection 5) of the Corporations Law.

                                       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"
           Notes to the Consolidated Financial Statements (Continued)
                  (figures stated in thousands of US dollars)

NOTE 18:       (Continued)

               Accumulated losses of the above-mentioned companies and Tarjetas
               Regionales S.A. 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. Under Decree No.
               1293/03, the provisions of Decree 1269/02 will remain in effect
               until December 10, 2004.

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$
               106,749 were transferred, receiving in exchange US$ 80,061 in
               cash and certificates of participation for US$ 26,687. 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$ 36,860 were transferred and US$ 27,645 in
               cash and certificates of participation for US$ 9,215 were
               received in exchange.

               As of December 31, 2003, the amounts of the participation
               certificates was US$ 40,408 and US$ 13,820, respectively.

               As of December 31, 2002, the amounts of the participation
               certificates were US$ 30,860 and US$ 9,295, respectively.

NOTE 20:       SEGMENT INFORMATION

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

               Primary segment: Business Segment.

                                  Financial           Services             Total
                                  brokerage
               Income                574,043           147,357           721,400
               Expenses            (512,936)          (24,013)         (536,949)
                                  ----------------------------------------------
               Result                 61,107           123,344           184,451
                                  ==============================================

                                       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 Consolidated Financial Statements (Continued)
                  (figures stated in thousands of US dollars)

NOTE 20:       (Continued)

               Secondary segment: Geographical area segment.

<TABLE>
<CAPTION>
                                       City of Buenos    Rest of country        Total
                                     Aires and Greater
                                        Buenos Aires
<S>                                           <C>                <C>               <C>
Financial brokerage
Income                                          558,423            15,620            574,043
Expenses                                      (498,979)          (13,957)          (512,936)
                                     --------------------------------------------------------
Result                                           59,444             1,663             61,107
                                     ========================================================
Services
Income                                          143,347             4,010            147,357
Expenses                                       (23,360)             (653)           (24,013)
                                     --------------------------------------------------------
Result                                          119,987             3,357            123,344
                                       ========================================================
</TABLE>

               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                               989,796
Loans                                                           3,748,724
Other receivables resulting from financial brokerage            2,115,156
Assets under financial leases                                       8,400

Liabilities
Deposits                                                        1,905,800
Other liabilities resulting from financial brokerage            5,153,385
</TABLE>

                                       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 Statements of Consolidated Financial Condition
                        as of December 31, 2003 and 2002
                  (figures stated in thousands of US dollars)
                                    (Note 2)

<TABLE>
<CAPTION>
====================================================================================
                                                            12.31.03        12.31.02
                                                     -------------------------------
<S>                                                          <C>             <C>
ASSETS
CURRENT ASSETS

Cash and due from banks (Notes 3 and 11 and
Schedule G)                                                      397             441

Investments (Notes 9 and 11 and Schedules C and G)             8,361          14,800

Other receivables (Notes 4, 9 and 11 and Schedule G)           1,961              65
                                                     -------------------------------
Total Current Assets                                          10,719          15,306
                                                     -------------------------------

NON-CURRENT ASSETS
Other receivables (Notes 4, 9, 11 and 13 and
Schedule G)                                                    1,514               2

Investments (Notes 9, 10 and 11 and
Schedules C, E and G)                                        498,703         557,460

Fixed assets (Schedule A)                                      1,172           1,258

Intangible assets (Schedules B and E)                          2,371           4,679
                                                     -------------------------------
Total Non-current Assets                                     503,760         563,399
                                                     -------------------------------
Total Assets                                                 514,479         578,705
====================================================================================
</TABLE>

<TABLE>
<CAPTION>
==================================================================================
                                                          12.31.03      12.31.02
                                                  --------------------------------
<S>                                                        <C>           <C>
LIABILITIES
CURRENT LIABILITIES

Salaries and social security  liabilities  (Notes
5 and 9)                                                        25            46

Tax liabilities (Notes 6 and 9)                                102           447

Other liabilities (Notes 7, 9 and 11 and
Schedule G)                                                    462           472
                                                  --------------------------------

Total Current Liabilities                                      589           965
                                                  --------------------------------

NON-CURRENT LIABILITIES

Tax liabilities (Notes 6, 9 and 13)                         14,797        18,476

Other liabilities (Notes 7 and 9)                                2             2
                                                  --------------------------------
Total Non-current Liabilities                               14,799        18,478
                                                  --------------------------------
Total Liabilities                                           15,388        19,443
                                                  --------------------------------
SHAREHOLDERS' EQUITY

(per related statement)                                    499,091       559,262
                                                  --------------------------------
Total Liabilities and Shareholders' Equity                 514,479       578,705
==================================================================================
</TABLE>

The accompanying Notes 1 to 16 and Schedules A, B, C, E, G and H are an integral
part of these financial statements.

                                       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"
         Income Statement for the fiscal year commenced January 1, 2003
                           and ended December 31, 2003
              In comparative format with the previous fiscal year
                  (figures stated in thousands of US dollars)
                                    (Note 2)

<TABLE>
<CAPTION>
========================================================================================================================
                                                                                          12.31.03         12.31.02
                                                                                      ----------------------------------
<S>                                                                                           <C>             <C>
Administrative expenses (Note 11 and Schedule H)                                               (2,996)          (3,863)
Loss on investments in related entities                                                       (66,535)        (491,438)
Financial and holding (loss)/ gain (Note 11)                                                   (6,566)           13,116
- Generated by assets                                                                          (6,765)           12,853
Interest
On time deposits (*)                                                                               318            2,353
On special current account deposits (*)                                                              -               70
On government securities                                                                             -                2
On negotiable obligations (*)                                                                      479               10
On notes receivable                                                                                  -               26
Others (*)                                                                                          43               47
Index-adjustment of notes receivable                                                                 -              152
Loss on Indol contracts (*)                                                                       (15)                -
Gain on fiscal credit certificate                                                                   30                -
Loss on purchase and sale of government securities                                               (497)              (8)
Mutual fund yield                                                                                    3                -
Exchange (loss) / gain                                                                         (6,575)           68,036
Loss on exposure to inflation                                                                    (551)         (57,835)
- Generated by liabilities                                                                         199              263
Exchange gain /(loss)                                                                               29            (285)
Gain on exposure to inflation                                                                      170              548
Other income and expenses                                                                        2,016              183
                                                                                      ----------------------------------
Pre-tax loss                                                                                  (74,081)        (482,002)
                                                                                      ----------------------------------
Income tax                                                                                           -         (20,220)
                                                                                      ----------------------------------
Loss for the year                                                                             (74,081)        (502,222)
========================================================================================================================
</TABLE>

(*) Balances net of eliminations corresponding to intercompany transactions,
pursuant to Section 33 of Law 19550. See Note 11.
The accompanying Notes 1 to 16 and Schedules A, B, C, E, G and H are an integral
part of these financial statements.

                                       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"
                  Statement of Changes in Shareholders' Equity
                 For the fiscal year commenced January 1, 2003
                           and ended December 31, 2003
               In comprative format with the previous fiscal year
                  (figures stated in thousands of US dollars)
                                    (Note 2)

<TABLE>
<CAPTION>
====================================================================================================================================
                                Shareholders' contributions (Note 8)                    Retained earnings (Note 12)
------------------------------------------------------------------------------------------------------------------------------------
                                                      Non-capitalized                       Reserved profits            Total
                                                      contributions
                                                  -----------------------           --------------------------------
Item                         Capital    Capital
                              stock   adjustment
------------------------------------------------------------------------------------------------------------------------------------
                                                  Issuance   Irrevocable    Total    Legal   Discretionary   Other
                                                  premiums  contributions           Reserve     reserve     reserves
------------------------------------------------------------------------------------------------------------------------------------
<S>                           <C>      <C>         <C>                <C>  <C>       <C>       <C>                <C> <C>
Balances at beginning of
year                          372,835  441,594     59,084             -    873,513    9,979     166,582           -    176,561
Adjustment to balances
at beginning of year                -    7,100        515             -      7,615       87       1,452           -      1,539
                           ---------------------------------------------------------------------------------------------------------
Adjusted balances at
beginning of year             372,835  448,694     59,599             -    881,128   10,066     168,034           -    178,100
Prior year adjustments              -        -          -             -          -        -           -           -          -
                           ---------------------------------------------------------------------------------------------------------
Modified and adjusted
balances at beginning of
year                          372,835  448,694     59,599             -    881,128   10,066     168,034           -    178,100
Absorption approved by
Ordinary and
Extraordinary Meeting of
Shareholders held on
4.23.03:
  - Discretionary reserve           -        -          -             -          -        -   (168,034)           -   (168,034)
Loss for the year                   -        -          -             -          -        -           -           -          -
------------------------------------------------------------------------------------------------------------------------------------
Total                         372,835  448,694     59,599             -    881,128   10,066           -           -     10,066
====================================================================================================================================
</TABLE>

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

----------------------------------------------------------------------
                            Unappropriated     Total         Total
                               retained     shareholders  shareholders
                               earnings      equity as     equity as
Item                                             of            of
                                              12.31.03      12.31.02
----------------------------------------------------------------------


----------------------------------------------------------------------
<S>                           <C>             <C>         <C>
Balances at beginning of
year                          (495,646)       554,428       484,906
Adjustment to balances
at beginning of year            (4,321)         4,833       574,333
                           -------------------------------------------
Adjusted balances at
beginning of year             (499,967)       559,261     1,059,239
Prior year adjustments          13,911         13,911         2,245
                           -------------------------------------------
Modified and adjusted
balances at beginning of
year                          (486,056)       573,172     1,061,484
Absorption approved by
Ordinary and
Extraordinary Meeting of
Shareholders held on
4.23.03:
  - Discretionary reserve      168,034              -             -
Loss for the year              (74,081)       (74,081)     (502,222)
----------------------------------------------------------------------
Total                         (392,103)       499,091       559,262
======================================================================
</TABLE>

The accompanying Notes 1 to 16 and Schedules A, B, C, E, G and H are an integral
part of these financial statements.

                                       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"
                             Statement of Cash Flows
                 For the fiscal year commenced January 1, 2003
                          and ended December 31, 2003
              In comparative format with the previous fiscal year
                  (figures stated in thousands of US dollars)
                                    (Note 2)

<TABLE>
<CAPTION>
=================================================================================================================
                                                                                       12.31.03          12.31.02
-----------------------------------------------------------------------------------------------------------------
<S>                                                                                     <C>               <C>
CHANGES IN CASH
Cash at beginning of year                                                                   441               122
Cash at end of year                                                                         397               441
                                                                                  -------------------------------
Net (decrease)/ increase in cash                                                           (44)               319
                                                                                  ===============================
REASONS FOR CHANGES IN CASH
Operating activities
Collections for sales of goods and services                                                 121                99
Payments to suppliers of goods and services                                             (1,483)           (2,056)
Payments to the staff and social security contributions                                   (277)             (315)
Payments of income tax                                                                    (451)                 -
Payments of other taxes                                                                   (927)             (177)
Other operating payments                                                                   (46)           (2,482)
                                                                                  -------------------------------
Net cash flow used in operating activities                                              (3,063)           (4,931)
                                                                                  -------------------------------
Investment activities
Collections for sales of fixed assets                                                        11                 -
Payments for purchases of  fixed assets                                                     (2)               (7)
Irrevocable contributions                                                                 5,387             5,680
Interest collected                                                                          673             2,389
Financing granted                                                                       (1,228)           (1,440)
Collections of investments                                                              (1,822)           (1,372)
                                                                                  -------------------------------
Net cash flow provided by investment activities                                           3,019             5,250
                                                                                  -------------------------------
Net (decrease) / increase in cash                                                          (44)               319
=================================================================================================================
</TABLE>

The accompanying Notes 1 to 16 and Schedules A, B, C, E, G and H are an integral
part of these financial statements.

                                       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
                 For the fiscal year commenced January 1, 2003
                          and ended December 31, 2003
          Presented in comparative format with the previous fiscal year
                  (figures stated in thousands of US dollars)

NOTE 1:        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 and an economic recession that has led mainly
               until the end of 2002 to a significant decrease in the demand for
               goods and services and a large rise in the level of unemployment.

               To confront that crisis, as from December 2001, the Government
               issued measures, laws, decrees and regulations 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 and the conversion into pesos of
               certain assets and liabilities in foreign currency held in
               Argentina.

               Mainly during fiscal 2002, the situation described produced a
               significant and unequal increase in the various economic
               indicators, such as the exchange rate, the domestic wholesale
               price index (used for the restatement of prior year financial
               statements) and specific indexes of goods and services related to
               the Company business. These circumstances affect the
               comparability of the financial statements presented and they
               should be construed taking those circumstances into account.

               Towards the end of the previous year and the beginning of the
               current year, certain economic indicators though still at low
               levels, began to show signs of recovery, interest rates began to
               decline and the exchange market stabilized. The financial system
               has gradually recovered its liquidity levels, recording an
               increase in deposits and in certain lines of credit.

               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.

                                       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 Financial Statements (Continued)
                  (figures stated in thousands of US dollars)

NOTE 1:        (Continued)

               At December 31, 2002, despite the implementation of measures for
               the relaxation of exchange controls, transfers of funds abroad
               for financial institutions to repay principal and interest on
               financial obligations continued to require the prior approval of
               the Argentine Central Bank, except for new indebtedness for
               operations carried out on the single free exchange market after
               February 2, 2002 and payment obligations with international
               credit agencies. In May 2003 this requirement for prior approval
               was eliminated for financial institutions which have not received
               financial assistance from the BCRA for liquidity reasons.

               During January 2003, the BCRA lifted the restrictions on the
               transfers of foreign currency abroad to repay principal amounts
               on rescheduled financial debts of the non-financial private
               sector, and past due debts for amounts not exceeding US$150 per
               month.

               Consequently, restrictions imposed on the transfers of foreign
               currency abroad were lifted for interest payments on financial
               debts, profits and dividends. In addition, on May 6, 2003,
               through Communique "A" 3944, the B.C.R.A. eliminated the
               requirement for prior approval of the BCRA for the transfer of
               funds abroad, in repayment of principal on most debts. This
               amendment did not apply to financial institutions which still
               recorded financial assistance from the BCRA to cover temporary
               lack of liquidity and which would opt to restructure those
               obligations in accordance with Decrees Nos. 739/03 and 1262/03.
               These institutions are still required to obtain the prior
               approval of that Body to transfer funds abroad to repay principal
               amounts, except in the cases of new financing received from
               abroad after February 11, 2002 and transfers related to debts
               with international agencies.

               Through Communique "A" 3998 issued on August 15, 2003, the BCRA
               authorized non-financial private sector individuals and legal
               entities to acquire foreign currency to be transferred abroad in
               order to make "off-shore" investments until March 31, 2004 (which
               was extended until June 30, 2004, per BCRA Communique "A" 4066),
               provided these funds are used to repay or repay in advance
               restructured financial debt within a term of 180 days. The
               maximum amount of these acquisitions of foreign currency was
               taken to US$ 40 million per month and is limited to 15% of the
               principal on the restructured debt. Furthermore, through
               Communique "A" 3999, issued on that date, the BCRA authorized
               foreign holders of US securities to access the domestic exchange
               market in order to transfer abroad the benefits received for the
               reimbursements of principal on these securities.

                                       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 Financial Statements (Continued)
                  (figures stated in thousands of US dollars)

NOTE 1:        (Continued)

               During November 2003, through Communique "A" 4049" the BCRA
               continued to relax rules on operations with foreign currency. The
               regulations applicable to arrangements and the settlement of
               operations carried out by the private sector with foreign
               entities under futures and forward exchange contracts and other
               derivatives were restated, so the approval of the monetary
               authority will no longer be necessary for certain operations.

               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 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 sole family dwelling of debtors, regardless of four
               amounts, consumer loans for up to ten thousand pesos and pledge
               consumer loans for up to thirty thousand pesos. 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 one hundred thirty seven thousand dolars.
               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 are as follows:

               Effective October 1, 2002 CVS shall be applied to:

                                       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 Financial Statements (Continued)
                  (figures stated in thousands of US dollars)

NOTE 1:        (Continued)

               -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 that have been converted to pesos and do
               not meet the conditions mentioned above. As established by the
               norms published on January 9, 2003, the only exceptions admitted
               to the application of the CER are the loan operations subject to
               the application of the CVS. The application of the CER to all
               operations involved has been established as from February 3,
               2002.
               It is also established that the amounts adjusted by applying the
               CER, collected as a result of the application of regulations in
               force prior to Law 25713 are to be reimbursed to customers, where
               applicable.
               In November 2003, Law No. 25796 was enacted. This Law amends Law
               25713, establishing the application of the CVS for the
               index-adjustment of loans subject to this coefficient until March
               31, 2004. As from April 1, 2004 no adjusting index will be
               applied to financing subject to CVS.
               Law 25796 also contemplates compensating financial institutions
               for the negative effects on their equity derived from the
               application of the CER to all deposits originally denominated in
               foreign currency and converted to pesos, and from the application
               of the CVS to certain loans in accordance with the
               above-mentioned regulations. This compensation will be paid
               through the delivery of Boden 2013.

               Decree No. 117/04 (published in the Official Gazette on January
               26, 2004) regulated the application of Laws Nos. 25713 and 25796.
               As provided for by Sections 7, 8 and 9 of Law 25713, payment
               terms and conditions were established for the restructuring of
               debts.
               Under Law 25796, the mechanism for adhering to the compensation
               regime created by it was determined, which will be optional for
               financial institutions, its total or partial implementation being
               envisaged by line of credit. Each financial institution shall
               report on the total credit subject to compensation on the basis
               of January 31, 2002 financial statements in the manner and within
               the term to be determined by the BCRA.
               The Finance Secretariat of the Ministry of Economy and Production
               will perform the calculation on the basis of data reported, for
               which it will compare the balance of the principal adjusted by
               applying the CER plus a 2% annual interest rate with that
               resulting from index-adjusting the debt applying the CVS at the
               average interest rate established for the line. If a

                                       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 Financial Statements (Continued)
                  (figures stated in thousands of US dollars)

NOTE 1:        (Continued)

               positive difference is obtained, compensation shall be made by
               the State, otherwise, the negative difference shall be reimbursed
               by the financial institution.
               Bearing in mind the guidelines established in Law 25796, at
               December 31, 2003 Banco de Galicia y Buenos Aires S.A. has
               recorded the estimated amount of the compensation of US$ 35,053
               under Other receivables resulting from financial brokerage, based
               on a full option.
               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.

               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 were 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.

                                       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 Financial Statements (Continued)
                  (figures stated in thousands of US dollars)

NOTE 1:        (Continued)

               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 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 Argentine Central
               Bank Communique "A" 3833 and complementary rules. This option may
               be exercised together with a put option to be delivered by

                                       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 Financial Statements (Continued)
                  (figures stated in thousands of US dollars)

NOTE 1:        (Continued)

               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 were also allowed to 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.
               Financial institutions bound to depositors that have opted 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 three thousand dollars (US$ 2) will be able
               to collect that amount in cash", each financial institution being
               entitled to increase that limit to four 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 was 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, establishing new conditions for the early
               reimbursement of rescheduled deposits. Deposits could be
               reimbursed in advance provided that the financial institution
               were not receiving financial assistance from the Central Bank,
               and its liquidity ratios were 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 on 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.

                                       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 Financial Statements (Continued)
                  (figures stated in thousands of US dollars)

NOTE 1:        (Continued)

               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 were allowed to 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 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 arose 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 December 31, 2003, the principal on rescheduled deposits
               (CEDROS) amounts to approximately US$ 103,008, while rescheduled
               deposits exchanged for National Government Bonds and not
               delivered to customers amount to US$ 26,993.
               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.

                                       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 Financial Statements (Continued)
                  (figures stated in thousands of US dollars)

NOTE 1:        (Continued)

               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 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.

               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 the $1.40 = US dollar
               exchange rate.
               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.

                                       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 Financial Statements (Continued)
                  (figures stated in thousands of US dollars)

NOTE 1:        (Continued)

               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. In December 2003, Law No. 25820 was
               enacted, which extended the declaration of public emergency until
               December 31, 2004. 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).
               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 sole 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

                                       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 Financial Statements (Continued)
                  (figures stated in thousands of US dollars)

NOTE 1:        (Continued)

               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.

               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. This deadline has been successively
               extended.
               On February 4, 2003, Decree 204/03 was issued, by which Legal
               Emergency Units were created. These units would be responsible
               for mediating between debtors and creditors within a term of 90
               days as from February 6, 2003.
               Those units, which have been created to operate within the
               jurisdiction of the Ministry of Labor and the Ministry of
               Production, would 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
               was voluntary and did not mean the suspension or interruption of
               legal time limits or foreclosures made extrajudicially or in
               execution of judgment, as regulated by current norms.

               Under Law No. 25737, enacted on May 8, 2003 and published in the
               Official Gazette on June 3, 2003, auctions of property that is
               the sole dwelling of debtors have been suspended for a term of 90
               days whatever may be the origin of the obligation.
               In addition, under Decree 247/03 the Mortgage Foreclosure
               Registry - Sole Dwelling - Law 25737" was created, with which
               debtors subject to foreclosure on their sole dwelling must be
               registered. Creditors may also register with this Registry.
               Financial institutions have voluntarily extended the mortgage
               foreclosure suspension period that had expired on September 2,
               2003 in order to find a proper solution for all parties.

                                       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 Financial Statements (Continued)
                  (figures stated in thousands of US dollars)

NOTE 1:        (Continued)

               Law 25798 (published in the Official Gazette on November 7, 2003,
               regulated by Decree 1284/03 (published in the Official Gazette on
               December 22, 2003), established the creation of a system for the
               refinancing of mortgage loans for up to US$ 34, intended for the
               acquisition of sole family dwellings, in arrears as from January
               1, 2001. Adherence to this system is optional for creditors that
               are financial institutions governed by Law 21526. At the date of
               these financial statements, Banco de Galicia y Buenos Aires S.A.
               is analysing the possibility of adhering to this mortgage loan
               refinancing system which envisages the transfer of the loans to a
               trust, the settlement of overdue debt by the State, and
               rescheduling of payments to debtors. The deadline for adhering to
               this system will be March 2004.

               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. Under Decree
               1293/03, the provisions of Decree 1269/02 will remain in effect
               until December 10, 2004.

               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 December 31,
               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$
               559,182 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 US$ 375,056.

               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 has been a consequence of the challenging of the
               public emergency regulations by savers, especially Decree 214/02
               and complementary and related provisions subsequently
               issued.

                                       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 Financial Statements (Continued)
                  (figures stated in thousands of US dollars)

NOTE 1:        (Continued)

               These regulations provide as follows:
               1) Decree 214, amended by Decree 320/02, suspended the execution
               of precautionary measures and final judgments, except for certain
               cases, a suspension that was declared unconstitutional by the
               courts.
               2) 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.
               3) Decree 1316/02 dated July 23, 2002 suspended again 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 the above-mentioned regulations have 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.
               Decrees 494/02 (published in the Official Gazette on March 13,
               2002) and 905/02 (published in the Official Gazette on June 1,
               2002) established the option to receive US dollar National
               Government Bonds in exchange for rescheduled deposits under the
               terms and in the manner prescribed therein. Those who have opted
               to receive the bonds envisaged in Decree 494/02 were allowed to
               opt to receive in exchange the bonds envisaged in Decree 905/02,
               as provided for by Section 35 of that Decree.
               Furthermore, 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.

                                       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 Financial Statements (Continued)
                  (figures stated in thousands of US dollars)

NOTE 1:        (Continued)

               Decree 739/03 (published in the Official Gazette on April 1,
               2003) provided for the possibility of reimbursing rescheduled
               deposits in the manner and with the tranches contemplated
               therein, receiving the amounts in cash or time deposits, as the
               case may be, and for the exchange difference between the original
               nominal value of the rescheduled deposit or rescheduled deposit
               certificate adjusted by applying the CER at the date of
               publication of the decree in the Official Gazette and the
               quotation of the US dollar on the free exchange market at that
               date depositors shall receive "NATIONAL GOVERNMENT BONDS IN US
               DOLLARS DUE 2013".
               Resolution No. 236/03 issued by the Ministry of Economy regulated
               the mechanism for releasing funds, as established by Decree
               739/03.

               The difference of US$ 192,799 between the amount paid in
               compliance with court orders and the amount resulting from
               converting deposits at $1.40 per US dollar, adjusted by applying
               the CER and interest accrued at the payment date, has been
               recorded by Banco de Galicia y Buenos Aires S.A. in "Intangible
               assets" as of December 31, 2003, net of related amortization for
               US$ 166,218, thus complying with the provisions of Communique "A"
               3916 of the Argentine Central Bank. At December 31, 2002, that
               Bank had recorded US$ 152,476 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.

               On December 30, 2003, Banco de Galicia y Buenos Aires S.A.
               formally requested from the National Executive Branch (Presidency
               of the Nation), with a copy to the Ministry of Economy and the
               BCRA, compensation for damage suffered by that Bank as a result
               of the "asymmetrical pesification" and especially that deriving
               from the negative effect on assets and liabilities caused by
               court decisions which, sustaining legal actions filed by savers,
               ordered the Bank to reimburse deposits at an exchange rate higher
               than US$1=$1.40. In this connection, compensation for amounts
               paid in compliance with final and conclusive court decisions was
               requested, without prejudice to such other amounts as may be
               ordered to be paid upon the

                                       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 Financial Statements (Continued)
                  (figures stated in thousands of US dollars)

NOTE 1:        (Continued)

               issue of new final and conclusive court decisions that permit the
               Bank to seek liquidated damages.
               The Argentine Supreme Court of Justice ruled on the case entitled
               Province of San Luis vs Argentine Federal Government declaring
               article 2 of Decree No.214/02 unconstitutional. At the date of
               these financial statements, the Court had not yet ruled on
               certain cases involving US dollar deposits of individual savers.
               Although the criterion to be followed by the Court in ruling on
               these cases will not be mandatory for the lower courts, it is an
               indication of the likely rulings in similar cases to be heard by
               them.

               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:

               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;

                                       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 Financial Statements (Continued)
                  (figures stated in thousands of US dollars)

NOTE 1:        (Continued)

               b) The mismatch 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.
               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

                                       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 Financial Statements (Continued)
                  (figures stated in thousands of US dollars)

NOTE 1:        (Continued)

               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.
               The total amount of the compensation thus determined was
               approximately US$ 2,254,027 of Boden 2012 (face value).
               In relation to the process for the determination of the
               compensation amount, on October 30, 2003, the BCRA sent a letter
               to Banco de Galicia y Buenos Aires S.A. in which it formulated
               observations on certain criteria and the computation of certain
               items that would modify the final amount of the compensation.
               Banco de Galicia y Buenos Aires S.A. has accepted and recognized
               in its financial statements an adjustment to the original face
               value of US$ 53,946 (in thousands). At December 31, 2003, this
               adjustment led to a decrease of $ 55,687 in assets, because of a
               lower compensation amount receivable, and a decrease of $ 24,887
               in liabilities as a result of a reduction in the amount of the
               advance to be requested from the BCRA for the subscription of the
               coverage bond.
               Banco de Galicia y Buenos Aires S.A. has requested authorization
               to examine the records in which observations are made, in order
               to know the grounds for the other observations.

               In the opinion of the legal advisors of Banco de Galicia y Buenos
               Aires S.A., the determination of the compensation amount, which
               is still in the process of being analyzed, has been made by that
               Bank on the basis of a proper

                                       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 Financial Statements (Continued)
                  (figures stated in thousands of US dollars)

NOTE 1:        (Continued)

               interpretation of current legislation. At the date these
               financial statements were prepared, no resolution had yet been
               issued by the BCRA, therefore the final amount is subject to its
               approval and modifications.

               Banco de Galicia y Buenos Aires S.A. records overall provisions
               in "Provisions for Other Contingencies, under liabilities, which
               would enable it to neutralize the effects on its assets and
               liabilities of a probably unfavorable decision on the issues
               being analyzed.

               At December 31, 2003, the amount of US$ 1,580,067 for the
               compensation to be received was recorded in "Other receivables
               resulting from financial brokerage - In foreign currency -
               Compensation to be received from the National Government".

               The "Government securities - In foreign currency - Holdings of
               investment accounts" caption includes US$ 549,482 for the
               securities received for the compensation, net of the transfer
               made to Banco de Galicia Uruguay S.A.
               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$
               572,307 which, including the adjustments from application of the
               CER and accrued interest for US$ 293,272, totals US$ 865,579.

               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 $1.40 per US dollar,
               for US$ 499,637, stated in the year-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., for the previous year, 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.

                                       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 Financial Statements (Continued)
                  (figures stated in thousands of US dollars)

NOTE 1:        (Continued)

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

               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.

                                       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 Financial Statements (Continued)
                  (figures stated in thousands of US dollars)

NOTE 1:        (Continued)

               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, under the terms
               of point 1 of Communique "A" 3940.

               The Bank has met these requirements. On November 25, 2003, a base
               agreement was reached with the members of the Creditors Committee
               "ad hoc" in relation to the terms of the proposal for the
               restructuring of its debt in foreign currency subject to foreign
               legislation.

               On December 3, 2003, through Board Resolution No. 460/03 the BCRA
               notified Banco de Galicia y Buenos Aires S.A. of the approval of
               the terms and conditions of the proposal.

               In accordance with Communique "A" 3940, this was a necessary
               requirement for Banco de Galicia y Buenos Aires S.A. to be
               granted an extension of the term for the repayment of the
               financial assistance to cover lack of liquidity owed to the BCRA,
               as established by Decree No. 1262/03.

               On November 27, 2003, through Resolution No. 1, the Financial
               System Restructuring Unit authorized the BCRA to modify the
               amortization conditions established in Section 9, subsect. B) of
               Decree No. 739/03, as established by Decree No. 1262/03 and to
               extend the term of that financial assistance, according to the
               repayment schedule submitted to that Entity, in compliance with
               the provisions of Communique "A" 3941.

               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.

                                       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 Financial Statements (Continued)
                  (figures stated in thousands of US dollars)

NOTE 1:        (Continued)

               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$ 55,973 should be returned to it restated as of January 2002,
               or its equity should be restored for an equivalent amount. This
               right has not been given accounting recognition in the financial
               statements of that Entity.

               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.
               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 cash position which
               enables Banco de Galicia y Buenos Aires S.A. to reimburse a
               significant portion of its demand deposits without requiring any
               financial assistance from the Central Bank;
               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;
               c. the orderly closing-down of the operating branches abroad;
               d. the streamlining of the Bank's operating structure and a
               significant reduction of its administrative expenses to conform
               them to the lower levels of activity recently recorded.
               This Plan was approved by the Board of Directors of the BCRA on
               May 3, 2002, through Resolution No. 281.
               As described below, to date the Bank has complied with the
               following components of the Plan: the restoring of its liquidity
               levels, the streamlining of its structure with the consequent
               reduction of its administrative expenses and the orderly
               closing-down of the operating branches abroad.

                                       82
<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 Financial Statements (Continued)
                  (figures stated in thousands of US dollars)

NOTE 1:        (Continued)

               As regards the restructuring of its external debt, the Bank
               managed to refinance the liabilities of its New York Branch
               (currently closed down) and its subsidiaries Banco Galicia
               Uruguay SA and Banco de Galicia (Cayman) Limited (In Provisional
               Liquidation) have restructured their liabilities, which consist
               mainly of deposits. Furthermore, with the approval of the BCRA,
               the Bank has recently restructured its debt carried with Banco
               Galicia Uruguay S.A. the principal amount of which was US$
               399,500. The restructuring of the Bank's external debt is
               currently under way, the capitalization of the Bank being subject
               to that restructuring.

               Liquidity.
               The strengthening of liquidity after the implementation of the
               Plan has been 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$ 136,519, 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$ 68,259, 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 Asistencia 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
                    thousand $100,000 (US$ 34,130), 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, a debt of US$ 195,904 was refinanced with the Bank
               Liquidity Fund for three years, which was settled after the
               implementation of the Plan with the assistance provided by the
               Argentine Central Bank under the same conditions as those of the
               original debt on May 9, 2002.

               After the initial strengthening of the Bank's liquidity levels
               within the framework of the renegotiation of its debt, after the
               implementation of the Plan, the Bank's liquidity levels
               stabilized and were restored, no further financial assistance
               having been required from the BCRA.

                                       83
<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 Financial Statements (Continued)
                  (figures stated in thousands of US dollars)

NOTE 1:        (Continued)

               Reduction of expenses.

               Within the framework of the Plan the Bank made significant
               progress in conforming its corporate structure and administrative
               expenses to the lower levels of activity recorded in 2002 and to
               the new regulations issued during that year.

               To this end, during 2002 the number of branches of the Bank was
               reduced by 61 branches, which is equivalent to 21.1% of its
               branch network at December 31, 2001, and the Galicia Ahora
               network, which at that date consisted of 118 customer service
               centers, was fully absorbed by the branch network. Furthermore,
               through voluntary retirement plans, for a cost of approximately
               US$ 44,369, the Bank's headcount had been reduced by 1,996
               employees at June 30, 2003, which is equivalent to 34% of the
               headcount at December 31, 2001. Banco de Galicia y Buenos Aires
               S.A. has also renegotiated all its rental contracts and those
               signed with systems, communications and other suppliers.

               New York Branch and Units abroad.

               According to the guidelines of the Plan, during fiscal 2002 the
               debt of the New York Branch was restructured, as a necessary step
               for its orderly closing-down, which took place on January 30,
               2003.

               The "Restructuring Plan" was submitted to the Office of the
               Comptroller of the U.S. Treasury ("OCC") on March 22, 2002. This
               Plan contemplated the voluntary and orderly termination of the
               operations carried out by the New York Branch and its subsequent
               closing-down, after:
               (i) payment of smaller deposits by the Branch,
               (ii) the renegotiation of its obligations with third parties, and
               (iii) 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
               million. Most of that debt was restructured between that date and
               the middle of 2002. At the end of fiscal 2002, the New York
               Branch had restructured all its obligations with third parties.

               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 the Head Office of the Bank 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, 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

                                       84
<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 Financial Statements (Continued)
                  (figures stated in thousands of US dollars)

NOTE 1:        (Continued)

               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 in
               Argentina.
               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, were closed down during the second half of 2002.

               Restructuring of the external debt of the Head Office and its
               Cayman Islands Branch.

               On June 12, 2002 Banco de Galicia y Buenos Aires S.A. announced
               the restructuring of its entire foreign currency external debt
               governed by foreign legislation, within the framework of the
               Plan, which amounted to US$ 1,365,500 (principal) at December 31,
               2003. Payment of those debts with external creditors were
               postponed until they are restructured. At that time the Bank also
               announced that it had hired the services of an international
               investment bank to advise it on the restructuring process.
               As regards the debt of the Head Office in Argentina and the
               Cayman Branch, on November 25, 2003, Banco de Galicia y Buenos
               Aires S.A. reached a non-binding base agreement with the members
               of the Committee composed of the most important creditors
               (Steering Committee), in relation to the terms of the proposal
               for the restructuring of its foreign currency debt governed by
               foreign legislation.
               On December 3, 2003, the Bank was notified of Resolution No.
               460/03 of the Board of Directors of the BCRA dated November 27,
               2003, which in its operative part approves the terms and
               conditions of the base agreement reached with the Creditors
               Committee "ad hoc". The basic refinancing schedule contemplates
               an exchange for medium and long-term "senior" negotiable
               obligations, subordinated negotiable obligations which will
               provide the Bank with supplementary capital, cash, BODEN 2012
               and/or preferred shares in Grupo Financiero Galicia S.A. This
               refinancing schedule complies with the parameters defined by the
               BCRA for this type of operations and is oriented towards meeting
               the objectives set in the Galicia Capitalization and Liquidity
               Plan, insofar as concerns the capitalization of that Bank.
               In accordance with Communique "A" 3940 of the BCRA, this approval
               was a necessary requirement to obtain a restructuring of the
               financial assistance granted by the BCRA to cover lack of
               liquidity under the terms of Decrees No. 739/03 and 1262/03.

                                       85
<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 Financial Statements (Continued)
                  (figures stated in thousands of US dollars)

NOTE 1:        (Continued)

               As part of the restructuring process, on December 23, 2003 the
               offer to refinance negotiable obligations originally issued for
               US$ 350,000, due 2002 and 2003 was released. The exchange
               alternatives foreseen are in line with the basic refinancing
               schedule. It is the Bank's intention to reach binding agreements
               with its bank creditors and multilateral credit entities under
               substantially equivalent conditions with regard to its debt with
               them for US$ 1,015,500 (original principal amount).
               The Bank is evaluating the possibility of submitting an
               "Out-of-court Reorganization Plan" which, if approved by a court
               of law, would enable the Bank to extend the restructuring
               obligation to all holders of debt subject to refinancing.

               The deadline for accepting the offer is February 18, 2004 and may
               be extended. This offer shall be considered to be valid if at
               least a 95% adherence of total debt subject to refinancing is
               obtained.

               Capitalization.

               The Plan contemplates the capitalization of the Bank as an
               integral part of the restructuring of its external debt. As part
               of the Plan, the Bank has proposed to the BCRA a capitalization
               plan for a total amount of US$ 300 million, which is subject to
               discussion and, therefore, to modifications.

               In connection with the restructuring of the external debt, the
               Meeting of Shareholders of Banco de Galicia y Buenos Aires S.A.
               held on September 30, 2003 approved the creation of a Program for
               the issuance and public offering of negotiable obligations, not
               convertible into shares in the Bank. In addition, the
               shareholders resolved that the negotiable obligations to be
               issued under the Program will be subordinated to the payment of
               shares in order to be computed as capital for BCRA regulatory
               purposes, instead of as capital stock.

               Banco de Galicia Uruguay S.A. and Banco de Galicia (Cayman)
               Limited (In Provisional Liquidation)
               The situation described above also affected Banco Galicia Uruguay
               S.A. and Banco de Galicia (Cayman) Ltd. (In Provisional
               Liquidation), 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

                                       86
<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 Financial Statements (Continued)
                  (figures stated in thousands of US dollars)

NOTE 1:        (Continued)

               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 March 31, 2004.

               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. 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

                                       87
<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 Financial Statements (Continued)
                  (figures stated in thousands of US dollars)

NOTE 1:        (Continued)

               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.
               On June 17, 2003 Banco de Galicia y Buenos Aires S.A. started to
               receive opinions from its depositors about different ways of
               exchanging their deposits rescheduled in 2002 (such as time
               deposits or negotiable obligations) for different proportions of
               BODEN 2012 and/or new negotiable obligations to be issued by the
               Company. The purpose of this exchange was to voluntarily modify
               the profile of the debt already restructured to satisfy the
               preferences of customers for different combinations of liquidity
               and return, and to improve the distribution of cash flows over
               time.

               The options offered consisted of the exchange of units of
               rescheduled deposits for US$ 1 thousand for: (i) Boden 2012 at
               par for one thousand US dollars (US$ 1,000), plus a cash premium
               of 3%. The maximum amount of this option was US$ 375,000; (ii) a
               new negotiable obligation for US$ 1 thousand to be issued by
               Banco Galicia Uruguay SA, with a coupon accruing interest at
               Libor plus 300 basis points, payable semi-annually, with a 7%
               cap, to be amortized in three installments falling due on
               December 15, 2009 (30%), December 15, 2010 (30%) and December 15,
               2011 (40%), plus an interest payment in cash for US$ 0.01375
               thousand to be made in September 2003. This negotiable obligation
               may be redeemed by the issuer as from December 15, 2008. The
               maximum amount of this option was US$ 300,000; (iii) a new
               negotiable obligation for US$ 0.450 to be issued by Banco Galicia
               Uruguay SA, with a coupon accruing interest at a 2% rate, payable
               semi-annually, to be amortized upon maturity on December December
               15, 2005, together with a principal and interest payment in cash
               for US$ 0.08875 in September 2003, and Boden 2012 at par for US$
               0.425. The maximum amount of this option was US$ 110,000; or (iv)
               a new negotiable obligation for US$ 0.500 to be issued by Galicia
               Uruguay, with a coupon accruing interest at 2% per annum, payable
               semi-annually, to be amortized in three installments falling due
               on December 15, 2006 (30%), December 17, 2007 (30%) and December
               15, 2008 (40%), and a principal and interest payment in cash for
               US$ 0.08875 in September 2003 and Boden 2012 at par for US$
               0.425. The maximum amount of this option was US$ 200,000. The
               maximum amounts were not exceeded, so no apportionment was
               required to be made.
               The term for this voluntary exchange expired on July 24, 2003.
               The customers of Banco Galicia Uruguay SA exercised those options
               in a total amount of US$ 185,000, which included opting to
               receive Boden 2012 for US$ 137,000, in addition to new negotiable
               obligations to be issued by Banco Galicia Uruguay SA.

                                       88
<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 Financial Statements (Continued)
                  (figures stated in thousands of US dollars)

NOTE 1:        (Continued)

               Through Resolution No. 338, the BCRA approved the terms and
               conditions for the restructuring of the debt of US$ 399,500
               (principal) that the Bank carried with Banco Galicia Uruguay SA,
               as well as the transfer to that entity of cash for US$ 72,100
               (principal amount) and Boden 2012 for US$ 137,000 (face value),
               in payment of the first principal installment and interest
               thereon due at August 15, 2003. The terms and conditions approved
               by the BCRA were as follows:

          -    To amortize the principal, a disbursement for US$ 40,900 and
               payment in Boden 2012 for a face value of US$ 137,000, both of
               them to be made on August 15, 2003. The balance of around US$
               221,600 is to be settled in 8 annual consecutive installments
               falling due in August of each year.

          -    Interest shall be payable on that date. Under Resolution No. 338,
               interest paid on August 15, 2003 was set at US$ 31,200, which
               resulted from applying the contractual rate until December 31,
               2002 and the new rate to be applied, LIBOR plus 150 basis points
               as from that date.

               During the first days of September 2003, as scheduled, Banco
               Galicia Uruguay S.A. began to pay the second installment
               envisaged in the deposit rescheduling program, with the
               amendments introduced by the exchange offer. At the same time,
               Banco Galicia Uruguay S.A. began to settle the exchange offer, on
               the basis of the Boden 2012 for US$ 137,000 (face value).
               On December 9, 2003, Banco Galicia Uruguay S.A. announced it
               would start to receive opinions concerning the possibility of a
               voluntary exchange. The exchange offer comprises all rescheduled
               deposits, negotiable obligations and receivables in favor of
               Banco de Galicia (Cayman) (In Provisional Liquidation). As the
               latter has issued rescheduled deposit certificates to its
               customers, Banco de Galicia Uruguay S.A. will receive opinions on
               their intention to sell those certificates.
               This voluntary exchange offer contemplates a cash advance,
               equivalent to an advance of the installment that should be paid
               in September 2004, and the delivery of BODEN 2012 for the
               balance. A total cap of US$ 300,000 has been established. The
               deadline for presenting those opinions will be February 13, 2004.
               It should be noted that the Company has adhered to this voluntary
               exchange offer, for this reason, Banco de Galicia Uruguay S.A.
               made an advance of US$ 76,8 (US$ 0.0075 for each US$ 0.100 in
               respect of Negotiable Obligations), on account of cash to be
               received as a result of that exchange.

               The situation of Banco Galicia Uruguay S.A. affected its
               subsidiary Banco de Galicia (Cayman) Ltd. (In provisional
               liquidation) because one of its main assets was a deposit for US$
               79,500 in Banco Galicia Uruguay SA).

                                       89
<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 Financial Statements (Continued)
                  (figures stated in thousands of US dollars)

NOTE 1:        (Continued)

               Consequently, at the request of that subsidiary, on July 18, 2002
               the authorities in the Cayman Islands appointed a provisional
               liquidator in order to reach a voluntary restructuring agreement
               between that Entity and its creditors, as an alternative to that
               Entity's liquidation.
               At the end of May 2003, Banco de Galicia (Cayman) Ltd. (in
               provisional liquidation) and the Provisional Liquidator concluded
               the debt rescheduling plan of that Entity and with the
               authorization of the court in the Cayman Islands ("the Court")
               they distributed the plan to all creditors for their
               consideration. The restructuring plan will be in force until
               April 30, 2012. While this plan remains in effect, the
               subsidiaries' assets will be administered by the liquidators for
               the benefit of creditors.

               On May 29, 2003 the restructuring proposal made to creditors was
               submitted to the Court. The terms of this proposal were as
               follows: an initial cash payment of 5% of the amount of the debt
               (principal and interest) due as of July 18, 2002, plus a
               transferable debt certificate for 95% of the amount of the debt
               (principal and interest) due as of July 18, 2002. The conditions
               of this certificate are as follows: (i) amortization of principal
               in nine annual consecutive installments, the first two of them
               for 15% of the principal and the following ones for 10%, payable
               as from September 21st of each year; (ii) interest at 2% per
               annum (plus 1% provided that the entity still has assets
               following reimbursement to all its creditors according to the
               proposed plan and repayment of the subordinated loan described
               below); (iii) the certificate shall accrue interest as from the
               date of the agreement; and (iv) interest shall be payable
               together with the principal and calculated on balances due. After
               the debt with all Class A creditors has been repaid, the
               remaining assets of Banco de Galicia (Cayman) Limited (In
               Provisional liquidation) shall be allocated to the repayment of
               the US$ 2,900 debt held with Galicia Pension Fund Ltd. (a
               subsidiary of Banco de Galicia (Cayman) Limited (In Provisional
               Liquidation), which is subordinated to the repayment of the debt
               with all Class A creditors. Furthermore, a subordinated loan for
               US$ 1,200 was obtained from the Company, the parent company of
               Banco de Galicia y Buenos Aires S.A., which shall be repaid after
               the debt with all creditors according to the proposed plan has
               been amortized.

               On July 10, 2003 a creditors' meeting was held in order to
               consider and approve fully or partially the repayment plan
               proposed by the Bank. At that meeting, that plan was approved
               without modifications by the creditors who, in number and amount
               of receivables represented 99.7% of the total number of votes
               cast. The degree of acceptance of the proposed plan exceeded the
               legal majorities of more than 50% of the number of creditors and
               75% of total receivables corresponding to the votes cast. With
               the approval of the proposed plan by the Court in the Cayman
               Islands and its registration with

                                       90
<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 Financial Statements (Continued)
                  (figures stated in thousands of US dollars)

NOTE 1:        (Continued)

               the Company Record of that jurisdiction, both of them having
               taken place on July 16, 2003, the proposed plan came into force
               as from that date and has effects and is mandatory for all
               creditors.
               This initial payment was made on August 8, 2003. The first
               installment (15%) was paid in the middle of September 2003.

               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 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., during last year and at
               the beginning of the

                                       91
<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 Financial Statements (Continued)
                  (figures stated in thousands of US dollars)

NOTE 1:        (Continued)

               current year, it was not possible to obtain financial statements
               prepared in accordance with Argentine accounting standards.
               In view of the above, and in compliance with the Galicia
               Capitalization and Liquidity Plan, the Bank 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
               Provisional Liquidation) in the amounts recorded as of December
               31, 2001 and, while those circumstances still persist, it has
               decided to discontinue the consolidation of the financial
               statements of the two subsidiaries with those of the Bank and
               record a provision in Provisions for other contingencies, under
               liabilities, to cover the deficit in the consolidated equity of
               the two subsidiaries, according to estimates made by Banco de
               Galicia y Buenos Aires S.A. on the basis of documentation and
               information held by it.

               As of December 31, 2003, the Bank began to receive the accounting
               information on those two subsidiaries regularly since September
               2003, so the financial statements have been consolidated on a
               line-by-line basis with the balances of Banco Galicia Uruguay
               S.A., Banco de Galicia (Cayman) Limited (In Provisional
               Liquidation) and its subsidiaries.

               The individual financial statements of Banco de Galicia y Buenos
               Aires S.A. include the investment in Banco de Galicia (Cayman)
               Limited (In Provisional Liquidation) according to the equity
               method of accounting, while US$ 245,076 have been recorded in
               Provisions for other contingencies, under liabilities, to cover
               the deficit in the equity of Banco Galicia Uruguay S.A.

               In view of this, Banco de Galicia y Buenos Aires S.A. ratified
               its intention to continue operating the business of its Uruguayan
               subsidiary and meet the commitments previously undertaken,
               subject to the necessary authorizations.

               Subsequent events.
               On January 30, 2004 the BCRA released Communique "A" 4084,
               establishing changes in the valuation of assets delivered to the
               public sector.
               The most significant changes refer to the treatment of the assets
               delivered to the BCRA as collateral for advances granted by this
               Entity for the subscription of the bonds envisaged in Sections
               10, 11 and 12 of Decree 905/02. At the Bank's option, these
               assets may be excluded from the treatment envisaged by Communique
               "A" 3911, described in Note 2.3.2.4. In this case, the Bank must
               record those assets at the value admitted for

                                       92
<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 Financial Statements (Continued)
                  (figures stated in thousands of US dollars)

NOTE 1:        (Continued)

               purposes of the creation of guarantees under the terms of Section
               15 of the above-mentioned decree and BCRA Communiques "A" 3717
               and "A" 3756.
               Communique "A" 4084 also contemplates that effective January 2004
               past due and unpaid instruments issued by the public sector are
               to be recorded at the lower of the carrying value at December 31,
               2003 or the value resulting from applying to the face value of
               those instruments, net of retirements or of those converted into
               tax options, as the case may be, the lower percentage resulting
               from applying the net present value method to Promissory Notes
               and Bonds issued by the Trust Fund for Provincial Development.
               It has also been established that interest accrued since December
               2001 on the public debt instruments eligible for the sovereign
               debt restructuring agreement is to be recognized as a counterpart
               under an adjustment account.

               At the date these financial statements were prepared, Banco de
               Galicia y Buenos Aires S.A. was analyzing the measures described
               above and estimates that their application will lead to an
               increase of approximately US$ 15,904 in the carrying value of the
               assets subject to adjustments.
               This figure might be modified by complementary regulations and/or
               amendments to regulations known at the date of these financial
               statements. Effective January 2004, the application of the 3.25%
               rate instead of the 3% rate in determining the present value of
               the assets delivered to the public sector under the terms of
               Communique "A" 3911, led to a decrease of approximately US$
               22,423 in their value.
               The estimates mentioned in the preceding paragraph were made on
               the basis of the following:

               1) an offer of 579,902,000 Bonds (face value) secured by the
               National Government, issued within the framework of Decree No.
               1579/02 as collateral for the advance to be requested from the
               BCRA for the subscription of the Coverage Bond mentioned in this
               Note and the exchange of deposits with the financial system, as
               established by Decree No. 1836/2002, mentioned in this Note;
               2) an offer of 153,331,000 Series 75 (VBY4) Argentine Republic
               External Bills (face value) at Badlar rate, and and 127,141,000
               Series 74 (VEY4) Argentine Republic External Bills (face value)
               at Survey rate, as collateral for the advance to be requested
               from the BCRA for the subscription of the Coverage Bond mentioned
               in this Note.

                                       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"
                    Notes to Financial Statements (Continued)
                  (figures stated in thousands of US dollars)

NOTE 1:        (Continued)

               Considering that the instruments mentioned in point 2) have been
               used as collateral, the analysis performed by the Bank showed
               that the adjustment mentioned in the fourth paragraph of this
               Note, established in point 5. of Communique "A" 4084, is not
               applicable for purposes of estimating the effects on the
               valuation of those assets, as indicated earlier.

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. Furthermore, through MD Resolution No.
               5/03 of the CPCECABA Technical Pronouncement No. 21 was approved,
               the application if which is mandatory for fiscal years commencing
               as from April 1, 2003.
               The main modifications introduced by the new Technical
               Pronouncements, which have produced significant effects on the
               Company's financial statements, are as follows:
               1. Requirement to apply the deferred tax method in recognizing
               income tax, which led to the recognition of prior year
               adjustments.
               2. Addition of new disclosure requirements, including segment
               information, earnings per share and the comparative information
               to be presented.

               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 preparation of financial statements at a given date requires
               management of the Company to make estimates and assessments that
               affect the reported amounts of assets and liabilities and the
               disclosure of contingent assets and liabilities at that date, as
               well as the income and expenses recorded for the year. The
               management of the Company makes estimates to be able to calculate
               at a given time the depreciation and amortization charges, the
               recoverable value of assets, the income tax charge and provisions
               for contingencies. Future actual results may differ from those
               estimates and assessments made at the date these financial
               statements were prepared.

                                       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"
                    Notes to Financial Statements (Continued)
                  (figures stated in thousands of US dollars)

NOTE 2:        (Continued)

               As established by professional accounting standards and CNV
               resolutions, the effects of inflation have started to be
               recognized 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. This criterion is not in accordance with
               prevailing professional accounting standards, under which
               financial statements are to be restated until September 30, 2003.
               Nevertheless, as of December 31, 2003, this departure has not
               produced a significant effect on the financial statements. 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
               have been restated following the guidelines contained in the
               preceding paragraphs of this Note. In addition, those balances
               have been reclassified to conform them to the current year
               presentation.

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

               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 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 year.
                    Interest receivable or payable has been accrued, where
                    applicable.

                                       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"
                    Notes to Financial Statements (Continued)
                  (figures stated in thousands of US dollars)

NOTE 2:        (Continued)

               c.   Investments

               c.1. Current

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

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

               c.2. Non-current

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

                    The equity interests in Banco de Galicia y Buenos Aires S.A.
                    and Net Investment S.A. have been accounted for according to
                    the equity method as of December 31, 2003. The equity
                    interest in Banco de Galicia y Buenos Aires S.A. has been
                    valued considering the effect of income tax determined
                    according to the deferred tax method on the consolidated
                    financial statements (see Note 3.b.8.a. to the consolidated
                    financial statements).

                    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 September 30, 2003 and
                    October 31, 2003 financial statements, respectively, and
                    considering the significant movements occurred from that
                    date to the closing date of these financial statements, in
                    accordance with professional accounting standards.

                    The financial statements of Sudamericana Holding S.A. have
                    been prepared as established by the National Insurance
                    Superintendency (SSN), without recognizing the effect of
                    inflation for January and February 2003. This criterion is
                    not in accordance with professional accounting standards.
                    Nevertheless, this departure has not generated a significant
                    effect on the financial statements of Grupo Financiero
                    Galicia S.A.

                                       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"
                    Notes to Financial Statements (Continued)
                  (figures stated in thousands of US dollars)

NOTE 2:        (Continued)

               d.   Fixed assets

                    Fixed assets have been valued at their acquisition cost,
                    restated into constant currency, as mentioned in paragraphs
                    5 and 6 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 value to the business at year
                    end.

               e.   Intangible assets

                    Intangible assets have been valued at their acquisition
                    cost, restated in constant currency, as mentioned in the
                    sixth and seventh 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$ 768
                    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 at
                    year end.
                    As of December 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 13).

               g.   Shareholders' Equity

               g.1. Activity in the shareholders' equity accounts has been
                    restated as mentioned in paragraphs 5 and 6 of this Note.

                                       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"
                          Notes to Financial Statements
          Presented in comparative format with the previous fiscal year
                  (figures stated in thousands of US dollars)

NOTE 2:        (Continued)

                    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 year 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 opening 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$ 13,911, mainly corresponding to:
                    - US$ 12,970 due 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.
                    - Adjustment derived from a foreign source tax loss
                    carry-forward recognized as a loss for US$ 941 as of
                    December 31, 2002.

               g.2. Income and expense accounts

                    The results for each year have been disclosed at restated
                    values following the guidelines detailed in paragraphs 5 and
                    6 of this Note.

               h.   Statement of cash flows

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

                                       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"
                    Notes to Financial Statements (Continued)
                   (figures stated in thousands of US dollars)

NOTE 3:        CASH AND BANKS

               The breakdown of this caption was as follows:

                                             12.31.03          12.31.02
                                           ------------      ------------
Cash (Schedule G)                                   318               350
Banks - current accounts (Note 11)                   79                91
Checks for deposit                                    -                 -
                                           ------------      ------------
Total                                               397               441
                                           ============      ============

NOTE 4:        OTHER RECEIVABLES

               The breakdown of this caption was as follows:

                                              12.31.03         12.31.02
                                            -----------      ------------
Current
Fiscal credits                                      154                23
Prepaid expenses                                      2                 2
Sundry debtors (Note 11 and Schedule G)             919                40
Others                                              886                 -
                                            -----------      ------------
Total                                             1,961                65
                                            ===========      ============

                                              12.31.03         12.31.02
                                            ------------     ------------
Non-current
Fiscal credits (Note 13)                             323                2
Prepaid expenses                                       1                -
Sundry debtors (Note 11 and Schedule G)            1,190                -
                                            ------------     ------------
Total                                              1,514                2
                                            ============     ============

NOTE 5:        SALARIES AND SOCIAL SECURITY LIABILITIES

               The breakdown of this caption was as follows:

                                              12.31.03         12.31.02
                                            ------------     ------------
Integrated Pension and Survivors'
Benefit System                                         3                4
Health care plans                                      1                1
Directors' and syndics' fees accrual                  21               41
Total                                       ------------     ------------
                                                      25               46
                                            ============     ============

                                       99
<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 Financial Statements (Continued)
                   (figures stated in thousands of US dollars)

NOTE 6:        TAX LIABILITIES

               The breakdown of this caption was as follows:

                                              12.31.03         12.31.02
                                            ------------     ------------
Current
Provision for income tax, net
  of fiscal credits                                    -              443
Income tax withholdings to be deposited                8                4
Provision for turnover tax                             1                -
Provision for tax on minimum notional
  income, net of fiscal credits                       93                -
                                            ------------     ------------
Total                                                102              447
                                            ============     ============

Non-current                                   12.31.03         12.31.02
                                            ------------     ------------
Deferred tax liability (Note 13)                  14,797           18,476
                                            ------------     ------------
Total                                             14,797           18,476
                                            ============     ============

NOTE 7:        OTHER DEBTS

               The breakdown of this caption was as follows:

Current                                     12.31.03           12.31.02
                                          ------------       -------------
Sundry creditors (Schedule G)                      179                 118
Expense accrual (Note 11 and Schedule G)           283                 354
                                         -------------       -------------
Total                                              462                 472
                                         =============       =============

Non-current                                12.31.03            12.31.02
                                         ------------        ------------
Directors' qualification bond                       2                   2
                                         ------------        ------------
Total                                               2                   2
                                         ============        ============

NOTE 8:        CAPITAL STATUS

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

<TABLE>
<CAPTION>
                                Restated
                                   to                  Approved by                Date of registration with the
                 Face           constant   -----------------------------------          Public Registry of
Capital          value          currency          Body                Date                   Commerce
-------------------------------------------------------------------------------------------------------------------
<S>             <C>            <C>          <C>                   <C>                         <C>
Subscribed,                                    Extraordinary         05.16.00
issued, paid-   1,092,407      821,529         shareholders'       07.24.00 and               08.09.00
in and                                            meeting            07.26.00
registered                                  Board of Directors
                ---------      -------
Total           1,092,407      821,529
</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"
                    Notes to Financial Statements (Continued)
                   (figures stated in thousands of US dollars)

NOTE 9:        ESTIMATED COLLECTION OR PAYMENT TERMS OF RECEIVABLES, INVESTMENTS
               AND DEBTS

               As of December 31, 2003 the breakdown of receivables, investments
               and debts according to their estimated collection or payment
               terms was as follows:

<TABLE>
<CAPTION>
=====================================================================================================================
                                                                     Salaries and
                                                                        social
                                                       Other           security             Tax           Other
                                   Investments      receivables       liabilities       liabilities    liabilities
--------------------------------------------------------------------------------------------------------------------
<S>                                 <C>                   <C>                   <C>       <C>                 <C>
Falling due within:
1st  Quarter                          8,292               1,181                 25             8              216
2nd Quarter                               -                 696                  -            94                -
3rd Quarter                               -                  84                  -             -              246
4th Quarter                              69                   -                  -             -                -
After one year                       42,266               1,514                  -        14,797                2
Subtotal falling due                 50,627               3,475                 25        14,899              464
No set due date                     456,437                   -                  -             -                -
Total                               507,064               3,475                 25        14,899              464
Non-interest bearing                456,437               2,556                 25        14,899              464
At a fixed rate                      50,627                 919                  -             -                -
Total                               507,064               3,475                 25        14,899              464
=====================================================================================================================
</TABLE>

NOTE 10:       EQUITY INTERESTS IN OTHER COMPANIES

               The breakdown of long-term investments was as follows:

<TABLE>
<CAPTION>
================================================================================================================
                                           As of 12.31.03
----------------------------------------------------------------------------------------------------------------
                                  Shares              Percentage of interest held in
                       ----------------------------   ------------------------------     Principal       Face
                                                                          Possible       line of       value per
Issuing company             Type          Number        Total Capital      votes         business        share
----------------------------------------------------------------------------------------------------------------
<S>                      <C>            <C>              <C>             <C>             <C>            <C>
                         Ordinary                                                        Financial
                         class "A"              101                                      activities     0.00034
Banco de Galicia y       Ordinary
Buenos Aires S.A.        class "B"      438,599,602                                                     0.00034
                       ------------------------------------------------------------
                           Total        438,599,703       93.585537%     93.585542%
----------------------------------------------------------------------------------------------------------------
                                                                                         Financial
                                                                                            and
                                                                                         investment
Net Investment S.A.      Ordinary            10,500           87.50%         87.50%      activities     0.00034
----------------------------------------------------------------------------------------------------------------
                         Ordinary
                         class "A"           31,302                                                     0.00034
Sudamericana             Ordinary                                                       Investment
Holding S.A.             class "B"           41,735                                     activities      0.00034
                         ----------------------------------------------------------
                          Total              73,037       87.500899%     87.500899%
----------------------------------------------------------------------------------------------------------------
                                                                                        Issuer of
                                                                                        warehouse
                                                                                        receipts and
Galicia Warrants S.A.    Ordinary           175,000           87.50%         87.50%     warrants        0.00034
================================================================================================================
</TABLE>

                                      101
<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 Financial Statements (Continued)
                   (figures stated in thousands of US dollars)
<TABLE>
<CAPTION>

NOTE 10:       (Continued)

================================================================================================================
                                           As of 12.31.02
----------------------------------------------------------------------------------------------------------------
                                  Shares              Percentage of interest held in
                         ------------------------     ------------------------------     Principal        Face
                                                                           Possible      line of       value per
Issuing company            Type         Number        Total Capital         votes        business        share
----------------------------------------------------------------------------------------------------------------
<S>                      <C>          <C>              <C>                <C>            <C>            <C>
                         Ordinary                                                        Financial
                         class "A"            101                                        activities     0.00034
Banco de Galicia y       Ordinary
Buenos Aires S.A.        class "B"    438,599,602                                                       0.00034
                         -----------------------------------------------------------
                           Total      438,599,703      93.585537%         93.585542%
----------------------------------------------------------------------------------------------------------------
Net Investment S.A.      Ordinary          10,500          87.50%             87.50%     Financial      0.00034
                                                                                            and
                                                                                         investment
                                                                                         activities
----------------------------------------------------------------------------------------------------------------
                         Ordinary                                                        Financial
                         class "A"         31,302                                           and         0.00034
Sudamericana             Ordinary                                                        investment
Holding S.A.             class "B"         41,735                                        activities     0.00034
                       ----------------------------------------------------------------
                          Total            73,037      87.500899%         87.500899%
----------------------------------------------------------------------------------------------------------------
                                                                                         Issuer of
                                                                                         warehouse
                                                                                         receipts and
Galicia Warrants S.A.    Ordinary         175,000          87.50%             87.50%     warrants       0.00034
================================================================================================================
</TABLE>

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

================================================================================
                                                       Issuing company
                                             -----------------------------------
         Financial condition                   Banco de Galicia   Net Investment
          as of 12.31.03                       y Buenos Aires          S.A.
                                                   S.A.
--------------------------------------------------------------------------------
Assets                                                7,230,907            1,972
Liabilities                                           6,769,217               23
Shareholders' equity                                    461,690            1,949
Result for the year                                    (67,909)          (2,066)
================================================================================

================================================================================
                                                              Issuing company
                                                         -----------------------
               Financial condition                           Galicia Warrants
                As of 10.31.03(*)                                S.A.
--------------------------------------------------------------------------------
Assets                                                                  2,072
Liabilities                                                               394
Shareholders' equity                                                    1,678
Result for the period of twelve months ended
October 31, 2003                                                          183
================================================================================

(*) See Note 2.c.2.

                                                              Issuing company
                                                          ----------------------
               Financial condition                            Sudamericana
                 As of 9.30.03(*)                             Holding S.A.
--------------------------------------------------------------------------------
Assets                                                                  8,067
Liabilities                                                                29
Shareholders' equity                                                    8,038
Result for the period of twelve months ended 9.30.03                  (2,692)
================================================================================
(*) See Note 2.c.2.

                                       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"
                    Notes to Financial Statements (Continued)
                   (figures stated in thousands of US dollars)

NOTE 10:       (Continued)

==========================================================================
                                                Issuing company
                                        ----------------------------------
               Financial condition      Banco de Galicia   Net Investment
                as of 12.31.02          y Buenos Aires          S.A.
                                            S.A.
--------------------------------------------------------------------------

Assets                                           7,540,515          2,818
Liabilities                                      7,010,917             29
Shareholders' equity                               529,598          2,789
Result for the year                               (525,120)        (1,786)
==========================================================================

================================================================================
                                                               Issuing company
                                                            --------------------
               Financial condition as of 9.30.02                Sudamericana
                                                                Holding S.A.
--------------------------------------------------------------------------------
Assets                                                                  11,095
Liabilities                                                                283
Shareholders' equity                                                    10,812
Result for the period of twelve months ended 9.30.02                      (749)
================================================================================

================================================================================
                                                               Issuing company
                                                              ------------------
               Financial condition as of 10.31.02              Galicia Warrants
                                                                     S.A.
--------------------------------------------------------------------------------
Assets                                                                    2,052
Liabilities                                                                 546
Shareholders' equity                                                      1,506
Result for the period of twelve months ended 10.31.02                      (267)
================================================================================

NOTE 11        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:

Banco de Galicia y Buenos Aires S.A.
                                                   12.31.03       12.31.02
                                                 ------------     -----------
ASSETS
Cash and banks - current accounts (Note 3)                 77              90
Investments - time deposits (Schedule C)                1,374           6,772
Total                                            ------------     -----------
                                                        1,451           6,862
                                                 ============     ===========

LIABILITIES
Other liabilities - expense accrual (Note 7)               53              42
                                                 ------------     -----------
Total                                                      53              42
                                                 ============     ===========

                                       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"
                    Notes to Financial Statements (Continued)
                   (figures stated in thousands of US dollars)

NOTE 11:       (Continued)

INCOME                                             12.31.03         12.31.02
                                                 ------------     ------------
Financial income - interest on special current              -              161
account deposits
Financial income - interest on time deposits              483            3,533
                                                 ------------     ------------
Total                                                     483            3,694
                                                 ============     ============

EXPENSES                                           12.31.03         12.31.02
                                                 ------------     ------------
Administrative expenses (Schedule H)
Leasing of brand                                          246              267
Bank charges                                                3                1
General expenses                                           22               54
                                                 ------------     ------------
Total                                                     271              322
                                                 ============     ============

Banco Galicia (Cayman) Limited
                                                   12.31.03         12.31.02
                                                 ------------     -----------
ASSETS
Other receivables - Sundry debtors (Note 4
and Schedule G)                                         1,190               -
                                                 ------------     -----------
Total                                                   1,190               -
                                                 ============     ===========

                                                   12.31.03         12.31.02
                                                 -----------      ------------
INCOME
Financial results - other interest                        11                 -
                                                 -----------      ------------
Total                                                     11                 -
                                                 ===========      ============

Banco Galicia Uruguay S.A.
                                                   12.31.03         12.31.02
                                                 ------------     ------------
ASSETS
Investments - special current account deposits
(Schedules C and G)                                       146            1,583
Investments - negotiable obligations (Schedules
C and G)                                               43,274           51,192
                                                 ------------     ------------
Total                                                  43,420          52,775
                                                 ============     ============

INCOME                                             12.31.03         12.31.02
                                                 ------------     ------------
Financial income - interest on special
current account deposits                                    -               60
Financial income - interest on time  deposits               -            1,187
Financial income - interest on negotiable
obligations                                               478               10
                                                 ------------     ------------
Total                                                     478            1,257
                                                 ============     ============

                                       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"
                    Notes to Financial Statements (Continued)
                   (figures stated in thousands of US dollars)


NOTE 11:       (Continued)

Galicia Valores S.A. Sociedad de Bolsa

EXPENSES                                           12.31.03         12.31.02
                                                 ------------     ------------

Financial loss on Indol                                     1                -
                                                 ------------     ------------
Total                                                       1                -
                                                 ============     ============

Galicia Warrants S.A.                              12.31.03         12.31.02
                                                 ------------     ------------
INCOME
Financial income - Interest earned                          -                1
                                                 ------------     ------------
Total                                                       -                1
                                                 ============     ============


B2Agro S.A.                                        12.31.03         12.31.02
                                                 ------------     ------------
ASSETS
Other receivables - sundry debtors (Note 4
and Schedule (G)                                          919               40
                                                 ------------     ------------
Total                                                     919               40
                                                 ============     ============

INCOME                                             12.31.03         12.31.02
                                                 ------------     ------------
Financial results - interest earned                        32                -
Total                                                      32                -
                                                 ============     ============

Tarjetas del Mar                                   12.31.03         12.31.02
                                                 ------------     ------------
INCOME
Other income and expenses                                  11                -
                                                 ------------     ------------
Total                                                      11                -
                                                 ============     ============

NOTE 12:       RESTRICTIONS IMPOSED ON THE DISTRIBUTION OF PROFITS

               At December 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 No. 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).

                                      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"
                    Notes to Financial Statements (Continued)
                   (figures stated in thousands of US dollars)

NOTE 13:       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            Total
                              receivables

Opening balances                        -               -
Charge to results                     323             323
                         --------------------------------
Closing balances                      323             323
                         ================================

Deferred tax liabilities:

                         Fixed assets       Investments          Total
Opening balances                      4            18,311            18,315
Charge to results                     -            (3,518)           (3,518)
                         --------------------------------------------------
Closing balances                      4            14,793            14,797
                         ==================================================

 Net deferred liabilities at year end, derived from the
 information included in the preceding tables, amount to US$
 14,475.

 The following table shows the reconciliation of income tax
 charged to results to that which would result from applying the
 tax rate in force to the accounting loss:

 Pre-tax loss for the year                                          (76,989)
 Permanent difference:
 Result of exposure to inflation                                         381
 Restatement of profit & loss items                                      941
 Result of long-term investments                                      66,535
 Consolidation adjustment per Technical Pronouncement No. 4              198
 Impairment of value of goodwill                                         767
 Prior year income tax adjustment                                          6
 Non-deductible expenses                                                 621
 Organization expenses                                                 (768)
                                                                  ----------
 Taxable accounting result                                           (8,308)
 Income tax rate in force                                                35%
                                                                  ----------
 Total income tax loss carry-forward (*)                             (2,908)
 Variation between closing and opening deferred tax assets                10
 Variation between closing and opening deferred tax liabilities        3,519
                                                                  ----------
 Sub-total                                                               621
 Argentine source loss carry-forward (**)                                312
 Foreign source loss carry-forward                                     (933)
                                                                  ----------
 Tax determined                                                            -
                                                                  ==========
 (*) Recognized in other income and expenses
 (**) Recognized in other receivables

                                       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"
                    Notes to Financial Statements (Continued)
                   (figures stated in thousands of US dollars)

NOTE 14:       EARNINGS PER SHARE

               Below is a breakdown of the Earnings per share as of December 31,
               2003 and 2002:

                                                   12.31.03         12.31.02
                                                 ------------     ------------

 (Loss) for the year                                 (74,081)        (502,222)
 Number of subscribed and paid-up ordinary
 shares                                             1,092,407        1,092,407

 Earning per ordinary share:
 - Basic                                               (0,07)           (0,46)
 - Diluted                                             (0,07)           (0,46)

NOTE 15:       SUBSEQUENT EVENTS

               After December 31, 2003, the Company made new cash irrevocable
               capital contributions in Net Investment S.A. for US $20.

               On January 15, 2004, the Company granted FREDDO S.A. a 60-day
               loan for US$ 150.

NOTE 16:       CAPITAL INCREASE

               On January 2, 2004, the Ordinary and Extraordinary Meeting of
               Shareholders of Grupo Financiero Galicia S.A. resolved to approve
               a capital increase for up to US$ 50,853, taking it to US$ 423,688
               under the terms of Section 188, paragraph 2, of the Law on
               Corporations. This capital increase will be intended for the
               acquisition or receipt as a contribution of Subordinated
               Negotiable Obligations for up to US$100,000, or other debt
               securities to be issued by Banco de Galicia y Buenos Aires S.A.,
               or other instruments representing receivables from that Bank, to
               be issued in exchange for the latter's due and payable debt under
               the terms of the restructuring of the foreign currency debt
               governed by foreign legislation being carried out by Banco de
               Galicia y Buenos Aires S.A., as described in Note 1 to these
               financial statements.

               The capital increase will be formalized through the issuance of
               up to 149,000,000 non-voting preferred shares that have
               preference over ordinary shares, with a face value of one peso,
               convertible into ordinary Class B shares one year after their
               issuance, in the event of the Company's liquidation or a change
               of control over Grupo Financiero Galicia S.A., in both cases at a
               rate of one preferred share for one ordinary

                                      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"
                    Notes to Financial Statements (Continued)
                   (figures stated in thousands of US dollars)

NOTE 16:       (Continued)

               Class B share, which shall pay dividends as from the fiscal year
               in which they are subscribed. The above-mentioned preferred
               shares shall carry preemptive and accretion rights over any
               eventual issuance of shares by the Company. The preferred shares
               will be paid up at their face value plus a premium, either in
               cash or through a contribution in kind of those securities for up
               to US$ 100,000 thousand (face value), in the latter case at a
               rate of US$ 0.00067114 (face value) of debt for each peso (face
               value) of shares.
               That Meeting of Shareholders resolved to set the value of the
               debt securities to be received at 73% of their face value in US
               dollars and, in the event of observations by the National
               Securities Commission (CNV), acceptance of a lower value of at
               least 70% shall be vested in the Board of Directors. At the date
               these financial statements were prepared, no decision had been
               issued by that body.

                                      108
<PAGE>
<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 fiscal year ended December 31, 2003
              In comparative format with the previous fiscal year.
                  (figures stated in thousands of US dollars)
<TABLE>
<CAPTION>
                                                                      Schedule A
     =============================================================================
                                            ORIGINAL VALUES
                              ----------------------------------------------------

                                   At
                               beginning of                             At end of
     Principal account             year         Increases   Deletions      year
     -----------------------------------------------------------------------------

    <S>                             <C>             <C>        <C>       <C>

     Real estate                      1,112             -           -      1,112
     Vehicles                            26             -          26          -
     Hardware and software              176             2           -        178
     Furniture and facilities            70             1           -         71
     Total                            1,384             3          26      1,361
</TABLE>

<TABLE>
<CAPTION>

                                                 DEPRECIATION
                               -------------------------------------------------
                                                                 For the year
                                                               -----------------
                                Accumulated                                                        Net book     Net book
                                at beginning                                     Accumulated       value at     value at
     Principal account             of year        Deletions     Rate   Amount   at end of year     12.31.03     12.31.02
                                                                 %
<S>                            <C>               <C>           <C>     <C>      <C>               <C>           <C>

     Real estate                         23               -      2         21             44        1,068          1,089
     Vehicles                             7               8     20          1              -            -             19
     Hardware and software               69               -     20         35            104           74            107
     Furniture and facilities            27               -     20         14             41           30             43
     Total                              126               8                71            189        1,172          1,258
     ===============================================================================================================================
</TABLE>

                                       109
<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 fiscal year ended December 31, 2003
              In comparative format with the previous fiscal year.
                  (figures stated in thousands of US dollars)

                                                                     Schedule B



<TABLE>
<CAPTION>


                                       ORIGINAL VALUES

                     At beginning of                                 At end of
Principal account         year           Increases     Deletions       year

<S>                  <C>                 <C>          <C>            <C>

Logotype                       19                -          (19)             -
Organization
expenses                      300                -         (300)             -

Goodwill                    6,849                -            -          6,849
Total                       7,168                -         (319)         6,849

</TABLE>


<TABLE>
<CAPTION>

                                          AMORTIZATION
                     Accumulated                    For the year
                     at beginning                   ------------       Accumulated at
Principal account     of year      Deletions     Rate %      Amount      end of year

<S>                  <C>            <C>          <C>            <C>    <C>

Logotype                      9          (9)         20            -                -
Organization
expenses                    140        (140)         20            -                -

Goodwill                  2,340           -          20        1,370            3,710
Total                     2,489        (149)                   1,370            3,710
</TABLE>


<TABLE>
<CAPTION>



                          Valuation          Net book        Net Book
                          allowance          value at        value at
Principal account        (Schedule E)        12.31.03        12.31.02

<S>                   <C>                    <C>              <C>

Logotype                         -                  -               10
Organization
expenses                         -                  -              160

Goodwill                      (768)             2,371            4,509
Total                         (768)             2,371            4,679
</TABLE>


                                      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"
      Investments Equity Interests in Other Companies and Other Investments
        Statement of Financial Condition as of December 31, 2003 and 2002
                  (figures stated in thousands of US dollars)

                                                                     Schedule C


<TABLE>
<CAPTION>

                                                                       Book Value           Book Value
          Issuance and characteristics of the securities             as of 12.31.03       as of 12.31.02
----------------------------------------------------------------------------------------------------------

Current  investments (*)
<S>                                                                  <C>                      <C>

Special current account deposits (Notes 9 and 11 and Schedule G)                  146               1,583
Time deposits (Notes 9 and 11 and Schedule G)                                   7,142              10,433
Mutual Funds (Note 9)                                                              65                   -
Negotiable Obligations  (Notes 9 and 11 and Schedule G)                         1,008               2,784
                                                                     ------------------------------------
Total current investments                                                       8,361              14,800


(*) include accrued interest.

</TABLE>


                                      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"
            Investments Equity in Other Companies and Other Investments
              Statment of Financial Condition as of December 31, 2003 and 2002
                  (figures stated in thousands of US dollars)

<TABLE>


                                                                                            SCHEDULE C (contd.)

<CAPTION>

 Issuance and characteristics of the                              Face                        Acquisition
             securities                    Class                  Value        Number            cost
---------------------------------------------------------------------------------------------------------
<S>                                      <C>                     <C>         <C>                <C>
Non-current investments
Negotiable Obligations (Note 11 and
Schedule  G)

Banco de  Galicia y Buenos Aires S.A.     Ordinary class "A"      0,0004             101
                                          Ordinary class "B"      0,0004     438,599,602
                                                                             -----------------------------
                                                                             438,599,703           877,602


Net Investment S.A.                       Ordinary                0,0004          10,500                 8
                                          Irrevocable                                                7,422
                                          contributions


Sudamericana Holding S.A.                 Ordinary class "A"      0,0004          31,302
                                          Ordinary class "B"      0,0004          41,735
                                                                             -----------------------------
                                                                                  73,037            11,264


                                          Irrevocable
                                          contributions                                              3,384


Galicia Warrants S.A.                     Ordinary                0,0004         175,000             4,037



                                          -----------------------------------------------------------------
                                                                                                    903,717
Total Non-current Investments

</TABLE>

<TABLE>


<CAPTION>
                                           Quotation
                                           per share            Equity value         Book Value           Book Value
 Issuance and characterisitics of the        as of                 as of                as of               as of
             securities                     12.31.03             12.31.03            12.31.03              12.31.02
---------------------------------------------------------------------------------------------------------------------
<S>                                      <C>                     <C>               <C>                   <C>
Non-current investments
Negotiable Obligations (Note 11 and                                                        42,266(*)         48,408(*)
Schedule  G)

Banco de  Galicia y Buenos Aires S.A.
                                          0,001314
                                                                   445,869                445,869           495,627



Net Investment S.A.
                                                                     2,039                  2,039             2,620



Sudamericana Holding S.A.

                                                                     7,056                  7,056             9,483






Galicia Warrants S.A.                                                1,473                  1,473             1,322



                                          --------------------------------------------------------------------------
Total Non-current Investments                                       456,437               498,703           557,460
</TABLE>


<TABLE>

<CAPTION>
                                                                INFORMATION ON THE ISSUING COMPANY
                                                                LATEST FINANCIAL STATEMENTS (Note 10)
                                                                                                                            %
                                                                                                                      of equity held
 Issuance and characteristics of the     Principal line of                Capital         Net         Shareholders'   in the capital
             securities                   business           Date         Stock       income/(loss)     equity           stock
------------------------------------------------------------------------------------------------------------------------------------
<S>                                      <C>                  <C>         <C>         <C>              <C>             <C>
Non-current investments
Negotiable Obligations (Note 11 and
Schedule  G)

Banco de  Galicia y Buenos Aires S.A.    Financial activities  12.31.03   159,953      (67,909)(1)    461,690       93,585537%




Net Investment S.A.                      Financial and
                                         investment
                                         activities            12.31.03         4       (2,066)(1)      1,949           87,50%


Sudamericana Holding S.A.                Financial and
                                         investment
                                         activities             9.30.03        28          490(2)       8,038       87,500899%





Galicia Warrants S.A.                    Issuer of             10.31.03        68          174(3)       1,678           87,50%
                                         warehouse
                                         receipts and
                                         warrants
                                         -------------------------------------------------------------------------------------------
Total Non-current Investments


--------------------------------------------
(*)  included accrued interest.
(1)  for the fiscal year ended December 31, 2003.
(2)  for the period of three months ended September 30, 2003.
(3)  for the period of six months ended October 31, 2003.
</TABLE>

                                      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"
            Fixed assets For the fiscal year ended December 31, 2003
              In comparative format with the previous fiscal year.
                  (figures stated in thousands of US dollars)

                                                                      Schedule E

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

Valuation allowance - Intangible assets
(Schedule B)                                                  -           1,024              (256)             768
-----------------------------------------------------------------------------------------------------------------------
Total as of 12.31.03                                          -           1,024              (256)             768
-----------------------------------------------------------------------------------------------------------------------
Total as of 12.31.02                                          -          56,721           (56,721)               -
-----------------------------------------------------------------------------------------------------------------------
Provisions:
-----------------------------------------------------------------------------------------------------------------------
Total as of 12.31.03                                          -               -                  -               -
-----------------------------------------------------------------------------------------------------------------------
Total as of 12.31.02                                          -          13,771           (13,771)               -
=======================================================================================================================
</TABLE>

                                      113
<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 December 31, 2003 and 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 12.31.03         currency       at 12.31.02
-------------------------------------------------------------------------------------------------------------------
<S>                                          <C>           <C>           <C>                <C>             <C>
ASSETS
CURRENT ASSETS
Cash and due from banks
Cash                                       US$   315       2,93              923               303              888
Imprest fund                               US$     -       2,93                -                 6               18
Banks                                              -       2,93                1                 -                -
Investments
Special current account deposits           US$   146       2,93              428             1,583            4,638
Time deposits                              US$ 3,919       2,93           11,484             1,336            3,914
Negotiable obligations                     US$ 1,008       2,93            2,952             2,784            8,157
Other receivables
Sundry debtors                             US$   919       2,93            2,694                40              117
                                                                   -------------                  -----------------
Total Current Assets                                                      18,482                             17,732
                                                                  --------------                  ----------------
NON-CURRENT ASSETS
Other receivables
Sundry debtors                             US$ 1,190       2,93            3,488                 -                1
Investments
Negotiable obligations                     US$42,266       2,93          123,840            48,408          141,835
                                                                 ---------------                  -----------------
Total Non-current Assets                                                 127,328                            141,836
                                                                  --------------                   ----------------
Total Assets                                                             145,810                            159,568
                                                                 ===============                  =================
LIABILITIES
CURRENT LIABILITIES
Other debts
Sundry creditors                           US$    23       2,93               68                85              249
Expense accrual                            US$   134       2,93              393               189              554
                                                                 ---------------                   ---------------
Total Current Liabilities                                                   461                                803
                                                                 ---------------                   ----------------
Total Liabilities                                                           461                                803
===================================================================================================================
</TABLE>

                                                                114
<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 fiscal year
                            ended December 31, 2003.
              In comparative format with the previous fiscal year.
                   (figures stated in thousands of US dollars)

                                                                      Schedule H
<TABLE>
<CAPTION>
                                                             Total as of          Administrative        Total as of
                       Captions                               12.31.03               expenses             12.31.02
--------------------------------------------------------------------------------------------------------------------
<S>                                                                 <C>                     <C>                <C>
Salaries and social security charges                                239                     239                298
Bonuses                                                               -                       -                 66
Services to the staff                                                 7                       7                  8
Training expenses                                                     2                       2                  -
Directors' and syndics' fees                                         42                      42                 52
Fees for services                                                   744                     744              1,053
Fixed asset depreciation                                             72                      72                 72
Intangible asset amortization                                     1,370                   1,370              1,433
Leasing of brand (*)                                                 16                      16                 18
Stationery and office supplies                                        6                       6                  4
Condominium Expenses                                                 21                      21                 23
Entertainment, travel and per diem                                   10                      10                 13
Vehicles expenses                                                     1                       1                  7
Insurance                                                             -                       -                 36
Electricity and communications                                       25                      25                 26
Taxes, rates and assessments and contributions                      236                     236                222
Bank charges (*)                                                      1                       1                  1
General expenses (*)                                                204                     204                531
                                                                 ------------------------------------------------------
Total                                                             2,996                   2,996              3,863
=======================================================================================================================
</TABLE>

(*) Balances net of eliminations corresponding to intercompany transactions (per
Section 33 of Law 19550). See Note 11 to the financial statements.

                                      115
<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 Financial Statements
          Presented in comparative format with the previous fiscal year
                   (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 9 to the financial statements.

               2.2. Debts: See Note 9 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 9 and Schedule G to
               the financial statements.

               3.2. Debts: See Notes 2.a., 2.b. and 9 and Schedule G to the
               financial statements.

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

               See Notes 9, 10 and 11 and Schedule C to the financial
               statements.

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

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

                                      116
<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 fiscal year
             commenced January 1, 2003 and ended December 31, 2003
         Presented in comparative format with the previous fiscal year
                  (figures stated in thousands of US dollars)

NOTE 6:        PHYSICAL INVENTORY OF INVENTORIES

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

NOTE 7:        FIXED ASSETS

               See Schedule A to the financial statements.

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

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

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

<TABLE>
<CAPTION>
Insured                                                         Insured      Book Value     Book Value
assets                     Risks covered                        amount         as of          as of
                                                                              12.31.03       12.31.02
<S>           <C>                                                 <C>            <C>            <C>
Vehicles      Third party  liability,  fire, theft and
              total loss.                                         -              -              19

</TABLE>

                                       117
<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 9:        ALLOWANCES AND PROVISIONS

               See Schedule E to the financial statements.

NOTE 10:       CONTINGENCIES

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

NOTE 12:       DIVIDENDS ON PREFERRED SHARES

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

NOTE 13:       LEGAL RESERVE

               See Note 12 to the financial statements.

                                      118
<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 fiscal year commenced January 1, 2003
                          and ended December 31, 2003
         Presented in comparative format with the previous fiscal year
                  (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 9 to the financial statements.
          2)   See Notes 4 and 9 to the financial statements.
          3)   As of December 31, 2003 and 2002 the Company had not set up any
               allowances or provisions.

     b)   Inventories:

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

B.   Non-Current Assets:

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

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

     c)   Investments:
           See Note 10 and Schedule C to the financial
           statements.

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

                                      119
<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 December 31, 2003 and 2002, there were no deferred charges.

C.   Current Liabilities:

     a)   Debts:
          1)   See Note 9 to the financial statements.
          2)   See Note 9 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 December 31, 2003 and 2002, the Shareholders' Equity did not
          include the Irrevocable Advances towards Future Share Issues account.
     2)   As of December 31, 2003 and 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 December 31, 2003 and 2002, the Company recorded receivables for
          operations conducted with related companies for US$ 2,110 and US$ 40,
          respectively.
     3)   As of December 31, 2003 and 2002 there were no receivables due from or
          loans granted to directors or syndics or members of

                                      120
<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)

          the surveillance committee or their relatives up to the second degree
          inclusive.
     4)   See Notes 9 and 11 to the financial statements.
     5)   As of December 31, 2003 and 2002, the breakdown of insurance policies
          taken out by the Company for its fixed assets was as follows:

<TABLE>
<CAPTION>

Insured                                                      Insured         Book Value          Book Value
assets                        Risks covered                  amount            as of                as of
                                                                             12.31.03             12.31.02
<S>           <C>                                              <C>              <C>                  <C>
Vehicles      Third party liability, fire, theft and
              total loss.                                      -                -                    19
</TABLE>

     6)   As of December 31, 2003 and 2002, there were no contingencies highly
          likely to occur which have not been given accounting recognition.
     7)   As of December 31, 2003 and 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, February 5, 2004.

(signed) Antonio Roberto Garces
Chairman

                                      121
<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 December 31, 2003 and 2002

The loss for the fiscal year ended December 31, 2003 reported by the Company
amounts to US$ 74,081; 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 System for the Mandatory
Acquisition of Shares in a Public Offering. It also approved the absorption of
part of the accumulated losses for the fiscal year ended December 31, 2002
stated in currency of February 2003 with the Discretionary Reserve balance of
US$ 168,034, and to carry forward the remaining loss of US$ 331,932.

On January 2, 2004, an Ordinary and Extraordinary Meeting of Shareholders was
held, which resolved to approve a capital increase under the terms of Section
188, paragraph 2, of the Law on Corporations (see Note 16 to the financial
statements).

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 the Company's listed ADRs be transferred to
NASDAQ SmallCap Market, which operates

                                      122
<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 December 31, 2003 and 2002
                       (figures stated in thousands of US dollars)

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. Grupo
Financiero Galicia S.A. has collected interest accrued on subordinated
negotiable obligations in US dollars at October 31, 2003 and on the portion of
ordinary negotiable obligations in US dollars not exchanged for BODEN 2012 at
August 31, 2003. Premium on the portion that was exchanged for those securities
and the corresponding yield were collected. On December 22, 2003, the Company
collected the cash advance of 7.5% of the principal amount of ordinary

                                      123
<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 December 31, 2003 and 2002
                       (figures stated in thousands of US dollars)

negotiable obligations, corresponding to the second exchange proposed by Banco
Galicia Uruguay S.A.

Lastly, it should be noted that the Board of Directors of the Central Bank of
Uruguay has resolved to extend the intervention in Banco Galicia Uruguay S.A.
with suspension of its activities and substitution of authorities established in
the corporate by-laws up to and including March 31, 2004.

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

<TABLE>
<CAPTION>
KEY STATEMENT OF FINANCIAL CONDITION FIGURES

                                   12.31.03        12.31.02      12.31.01        12.31.00       12.31.99
<S>                                <C>             <C>          <C>               <C>            <C>
Current Assets                      10,719          15,306         50,247          51,413             16
Non-current Assets                 503,760         563,399      1,009,823         942,373        434,388
                             --------------  --------------  -------------  --------------  ------------
Total Assets                       514,479         578,705      1,060,070         993,786        434,404
                             ==============  ==============  =============  ==============  ============

Current Liabilities                    589             965            829             473             42
Non-current liabilities             14,799          18,478              2               2              2
                             --------------  --------------  -------------                  ------------
Total Liabilities                   15,388          19,443            831             475             44
                             --------------  --------------  -------------  --------------  ------------

Shareholders' Equity               499,091         559,262      1,059,239         993,311        434,360
                             --------------  --------------  -------------  --------------  ------------
Total                              514,479         578,705      1,060,070         993,786        434,404
                             ==============  ==============  =============  ==============  ============

KEY INCOME STATEMENT FIGURES
                                  12.31.03        12.31.02       12.31.01        12.31.00       12.31.99

Ordinary operating result          (69,531)       (495,301)        89,567          97,438         12,677
Financial results                   (6,566)         13,116            401              27              -
Other income and expenses            2,016             183            319             181              -
                             --------------  --------------  -------------                  ------------
Ordinary net (loss)/income         (74,081)       (482,002)        90,287          97,646         12,677
                             --------------  --------------  -------------  --------------  ------------
Income tax                               -         (20,220)             -               -              -
                             --------------  --------------  -------------  --------------  ------------
Net (loss)/income                  (74,081)       (502,222)        90,287          97,646        12,677
                             ==============  ==============  =============  ==============  ============
</TABLE>

                                                                124
<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 December 31, 2003 and 2002
                   (figures stated in thousands of US dollars)

<TABLE>
<CAPTION>
RATIOS
                            12.31.03        12.31.02          12.31.01             12.31.00        12.31.99
<S>                         <C>             <C>             <C>                  <C>              <C>
Liquidity                   18.196987       15.857496         60.635502            108.608508      0.390244
Credit standing             32.434392       28.764166       1,274.56673          2,087.804878     9,789.800
Capital assets               0.979164        0.973552          0.952601              0.948266      0.999962
Return on equity           (0.142769)      (0.695050)          0.086450              0.136448      0.029186
</TABLE>

The Company's individual financial statements have been considered to disclose
the key statement of financial condition 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.

For comparative purposes, the balances as of December 31, 2002, 2001, 2000 and
1999 have been restated to constant currency 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.

Cash contributions made as of December 31, 2003 amounted to US$ 1,228. After the
closing date of these financial statements, Grupo Financiero Galicia S.A. made
new cash contributions for US$ 20.

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%.
Through its parent company B2Agro S.A. this company, which operates under the
trade name Red de Campo, seeks to strengthen the leadership position of the Bank
in the agricultural and livestock sector. As a service company, it provides
solutions to all participants in the

                                      126
<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 December 31, 2003 and 2002
                  (figures stated in thousands of US dollars)

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 December 31, 2002,
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 a program by which it participates in all
aspects, from the search 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.

During 2003, B2Agro S.A. increased its level of activity by conducting business
involving inputs, financial structurings and operations on Mercado a Termino de
Buenos Aires, obtaining a greater share of the inputs market, with a volume sold
of approximately US$ 3,413, and consolidating a 250% growth. Furthermore, an
alliance was implemented with Jose Manuel Diaz Herrera S.A. to structure the
sale of all types of cattle, thus offering a wider range of services.

As regards technological services, the web page of Fundacion Producir
Conservando and information modules were developed to be used by customers of
Banco Galicia through the Galicia Office tool. During 2004, management tools
will be provided to producers through this Galicia Office tool.

With regard to the equity interest that Net Investment S.A. holds in Duenovende
S.A., during 2002, the macroeconomic situation and the measures implemented by
the Argentine Government significantly affected the mortgage loan business,
producing a significant decrease in real estate purchase and sale operations,
areas linked with the main source of income of the company. For this reason, the
"Soloduenos.com.ar" web site has been disabled since January 1, 2003. In view of
these circumstances, and of the fact that there are no prospects for undertaking
new projects, the Ordinary and Extraordinary Meeting of Shareholders of that
company held on April 2003 resolved to dissolve Duenovende S.A in advance and
subsequently liquidate it. To date, formalities are being carried out to close
down this company. 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

                                      127
<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 December 31, 2003 and 2002
                  (figures stated in thousands of US dollars)

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$ 863 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.

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 September 30, 2003, the production of all Group companies represented
2.48% of the life insurance market, being ranked 8th among life insurers. As of
December 31, 2003, the consolidated figure was 1,365,039 insureds and 43,973
insurance policies. Continuing with the strategy commenced in 2002, the
company's business was focused primarily on the maintenance of its portfolio,
loyalty campaigns having been promoted towards its current individual 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
continued to be focused on the Banco Galicia channel and on the development of a
network of independent agents of its own, with more than 100 active members, as
well as a redirection towards independent agents. 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. Furthermore, the Salta Institute continues
to expand its regional scope, covering the provinces of Jujuy, Tucuman and
Catamarca, in addition to Salta.

                                      127
<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 December 31, 2003 and 2002
                  (figures stated in thousands of US dollars)

> 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.

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 December 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 the Company 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.

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 year is basically linked with the
development of the Argentine economy, and particularly of the financial system.

Autonomous  City of Buenos Aires,  February 5, 2004.
Signed)  Antonio  Roberto Garces. Chairman.

                                      128
<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 December 31, 2003 and 2002
                  (figures stated in thousands of US dollars)

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 fiscal year ended
December 31, 2003, presented in comparative format with the previous year,
produced in Spanish, a copy of which I have had before me. Given and signed in
Buenos Aires, Argentina on February 19, 2004. This translation consists of 129
pages.
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
ejercicio terminado el 31 de diciembre de 2003, presentado en forma comparativa
con el ejercicio anterior, 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 19 de febrero de 2004. La presente traduccion consta de 129 fojas utiles.

                                      129
<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., as called for by
Section 294, subsect. 5, of the Corporations Law, we have examined the documents
detailed in section I. below. Such documents are the responsibility of the Board
of Directors of the Company. Our responsibility is to report on those documents.

I.   DOCUMENTS EXAMINED

We have examined the Inventory, the Statement of Financial Condition of Grupo
Financiero Galicia S.A. as of December 31, 2003, and the related Income
Statement, Statement of Changes in Shareholders' Equity and Statement of Cash
Flows for the fiscal year then ended, as well as Notes 1 to 16, 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 examined the Consolidated Statement of Financial Condition of Grupo
Financiero Galicia S.A. as of December 31, 2003 and the Consolidated Income
Statement and Consolidated Statement of Cash Flows for the fiscal year then
ended, as well as Notes 1 to 20, which are presented as supplementary
information.

II.  SCOPE OF THE AUDIT EXAMINATION

Our examination was conducted in accordance with standards applicable in
Argentina to syndics. These standards require syndics to review the documents
detailed in section I. observing prevailing auditing standards, and verify the
consistency of the documents examined with the information

                                       1
<PAGE>

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 in accordance with prevailing auditing standards, in which they
issued no opinion on the above-mentioned financial statements.

Our 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 audit
performed by those professionals. These standards require that the auditor plan
and perform the audit to obtain reasonable assurance that the financial
statements are free of material misstatements or significant errors. An audit
includes examining, on a selective test basis, the judgmental elements
supporting the amounts and information disclosed in the financial statements. An
audit also includes assessing the accounting standards used and the significant
estimates made by the Board of Directors of the Company, as well as evaluating
the overall financial statement presentation. It is not the responsibility of
the Supervisory Syndics Committee to perform any control over the management, so
our examination 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.

We also report that in performance of the legality control that is part of our
field of competence, during this year we have applied all the other procedures
described in Section 294 of Law 19550 which we deemed necessary according to the
circumstances.

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 fiscal
year ended December 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. Assumptions and projections on future events contained
in that documentation are the responsibility of the Board of Directors.

                                       2
<PAGE>

We consider that our work provides a reasonable basis for our report.

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 86.7% of its Assets and 89.3% of its
Shareholders' Equity, therefore requiring a special mention.
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 4.
to 11. of their report, the development and resolution of which might 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 and
evaluates its own assets and liabilities and/or those of its controlled
companies, 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. Section 12 of the
report issued by the auditors makes reference to these situations, so no opinion
is issued on the financial statements of Grupo Financiero Galicia S.A.. This
Supervisory Syndics Committee concurs with those statements. Consequently, the
financial statements should be considered in the light of these uncertain
circumstances.

                                       3
<PAGE>

IV.  CONCLUSION

In our opinion, based on the examination 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 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 under 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, theInformation required in addition to the
Notes to the Financial Statements and the Supplementary and Explanatory
Statement by the Board of Directors for the fiscal year ended December 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.

Furthermore, we report that: a) the accompanying financial statements and
related inventory stem from accounting records kept, in all formal respects, in
compliance with legal rules prevailing in Argentina; b) as called for by
Resolution No. 368 of the CNV as regards the independence of the external
auditor and the nature of the auditing policies applied by the latter and the
accounting policies followed by the Company audited, the report issued by that
external auditor includes a statement of compliance with prevailing auditing
standards, that provide for the independence of the external auditor, and
contains no qualifications with regard to the application of the professional
accounting standards, except as mentioned in its report, related to the
application of

                                       4
<PAGE>

the Argentine Central Bank regulations, which prevail over the application of
professional accounting standards.

Buenos Aires, February 5, 2004

(Signed) NORBERTO DANIEL CORIZZO, Syndic, for the Supervisory 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 fiscal year
ended December 31, 2003, produced in Spanish, a copy of which I have had before
me.
Given and signed in Buenos Aires, Argentina on February 19, 2004. 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 ejercicio terminado el 31
de diciembre 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 19 de febrero de 2004. La presente traduccion consta de 5 fojas utiles.

                                       5
<PAGE>

                                AUDITORS' 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 audited the statements of financial condition of Grupo
          Financiero Galicia S.A. as of December 31, 2003 and 2002, and the
          related income statements, statements of changes in shareholders'
          equity and statements of cash flows for the fiscal years then ended,
          as well as Notes 1 to 16, Schedules A, B, C, E, G and H, Informative
          Review, the Information required in addition to the Notes to 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 audited the consolidated
          statements of financial condition of Grupo Financiero Galicia S.A. as
          of December 31, 2003 and 2002, and the consolidated income statements
          and consolidated statements of cash flows for the fiscal years then
          ended, 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.

     2.   Our examinations were conducted in accordance with auditing standards
          prevailing in Argentina, as approved by the Professional Council in
          Economic Sciences of the Autonomous City of Buenos Aires and included
          the auditing procedures established by Argentine Central Bank
          Communique CONAU-1. These standards require that the auditor plan and
          perform the audit to obtain reasonable assurance that the financial
          statements are free of significant errors and to form an opinion on
          the fairness of the significant information disclosed in the financial
          statements. An audit includes examining, on a selective test basis,
          the evidence supporting the amounts and information disclosed in the
          financial statements. An audit also includes assessing the accounting
          standards used and the significant estimates made by Company, as well
          as evaluating the overall financial statement presentation. We
          consider that our audits provide a reasonable basis for the statement
          made in paragraph 15.
<PAGE>

     3.   The equity interest held by the Company in Banco de Galicia y Buenos
          Aires S.A. as of December 31, 2003 represents approximately 86.7% and
          89.3% of the 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 11. 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, mainly
          corresponding to concessionaires of public utility services which, net
          of loan loss allowances, amounts to approximately $445,000 thousand
          (US$151,877 thousand) and $580,000 thousand (US$197,952 thousand) as
          of December 31, 2003 and December 31, 2002, respectively, on
          consolidated bases. 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
          declared default on public debt servicing in early 2002, the
          restructuring of which is currently under negotiation. As of December
          31, 2003 and 2002, financing to the public sector recorded by the
          Company in the consolidated financial statements, including
          "Government securities", "Loans", "Compensation to be received" and
          "Trust Funds", totaled approximately $16,529,760 thousand
          (US$5,641,556 thousand) and $17,531,000 thousand (US$5,983,276
          thousand), respectively. Approximately 95% of these balances
          correspond to financing and government securities not subject to the
          restructuring of the sovereign debt, of which approximately 49% will
          be used as collateral for compliance with financial obligations with
          the Argentine Central Bank, as indicated in Note 1, under sections
          "Treatment accorded to extraordinary assistance granted to financial
          institutions by the BCRA" and "Situation of Banco de Galicia y Buenos
          Aires S.A. and its subsidiaries - Subsequent events". It is not
          possible to assure that the recoverable values of the above mentioned
          financing will exceed their respective carrying values as of December
          2003 and 2002.

     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 $1,609,982 thousand (US$549,482 thousand)
          ($1,416,985 thousand -US$483,613 thousand- not yet released) and
          $4,629,595 thousand (US$1,580,067 thousand) in "Government and
          corporate securities" and "Other receivables resulting from financial
          brokerage", respectively, as of December 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. At the date of this report,
          the final settlement of that compensation and the release of the
          government securities by the Argentine Central Bank were still
          pending. As mentioned in Note 1 to the financial statements, as a
          result of the review of the calculation performed, that Entity has
          made observations on certain issues, some of which have not been
          recognized by Banco de Galicia y Buenos Aires S.A. and the latter has
          requested authorization to examine the records in order to know the
          grounds for those observations. The amounts under discussion have been
          covered with allowances set up by Banco de Galicia y Buenos Aires S.A.
          as of December 31, 2003. As of December 31, 2002, that Bank recorded
          $693,471 thousand (US$236,680 thousand) and $7,098,505 thousand
          (US$2,422,698 thousand) under
<PAGE>

          "Government and corporate securities" and "Other receivables resulting
          from financial brokerage", respectively, for that item.

     7.   As of December 31, 2003 and 2002, Banco de Galicia y Buenos Aires S.A.
          records rescheduled deposits (CEDROS) for $301,813 thousand
          (US$103,008 thousand) and $875,482 thousand (US$298,799 thousand)
          (principal), respectively, under liabilities, corresponding to
          deposits converted into pesos under Decree 214/02. Furthermore, as
          established by the Argentine Central Bank, as of December 31, 2003
          Banco de Galicia y Buenos Aires S.A. recorded $487,020 thousand
          (US$166,218 thousand) in "Intangible assets", net of accumulated
          amortization, 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 recorded $446,756 thousand (US$152,476
          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 ruled on certain cases
          involving US dollar deposits placed by individual savers. Banco de
          Galicia y Buenos Aires S.A. formally requested from the National
          Executive Branch (Presidency of the Nation), with a copy to the
          Ministry of Economy and the BCRA, compensation for the amounts paid
          for that item, involved in final and conclusive judgments. It is not
          possible to determine the final amounts to be applied to those
          deposits converted into pesos, or whether the amounts already paid
          will be recovered by that Bank.

     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, and the offer to exchange deposits and
          rescheduled obligations for government securities, 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.   Banco de Galicia y Buenos Aires S.A. recorded $102,705 thousand
          (US$35,053 thousand) under "Other receivables resulting from financial
          brokerage" as of December 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). At the date of issue of these financial statements, this
          additional compensation, which was approved by Law 25796, promulgated
          by the National Executive Branch and regulated by the Ministry of
          Economy, and will be paid through the delivery of National Government
          Bonds in pesos at variable rates due 2013, was pending regulation and
          settlement by the Argentine Central Bank.
<PAGE>

     10.  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 9 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, of which the restructuring and/or capitalization of its
          financial obligations and compliance with technical ratios are still
          pending, in addition to the mismatch of terms and yields of financial
          assets and liabilities and the generation of sufficient profits, 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.

     11.  As mentioned in Note 1 to the financial statements, 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.

     12.  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 that control entity and accepted by the CNV for
          financial institutions, differ from the general regulations
          established by the CNV for issuing entities 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 criteria has
          not been considered at Grupo Financiero Galicia S.A.

     13.  Our audit report dated February 17, 2003 on the financial statements
          of the Company as of December 31, 2002 included a qualification
          regarding the criterion for consolidating the interests in Banco
          Galicia Uruguay S.A. and Banco Galicia (Cayman) Ltd., which was not in
          accordance with professional accounting standards. As detailed in Note
          1 to the financial statements, this situation was resolved at the date
          of issue of this report.

     14.  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.
<PAGE>

          Nevertheless, the financial statements mentioned in paragraph 1. have
          been translated to U.S. dollars at the exchange rate of US$ 1 = $ 2.93
          prevailing at December 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.

     15.  In view of the effect on the financial statements that could derive
          from the adjustments or reclassifications, if any, which might be
          required following resolution of the situations described in
          paragraphs 4. to 11. above, we are not in a position to express, and
          therefore do not express an opinion on the financial statements of
          Grupo Financiero Galicia S.A., and its consolidated financial
          statements as of December 31, 2003 and 2002 detailed in paragraph 1.,
          taken as a whole, prepared in accordance with Argentine Central Bank
          regulations and, except for the departures from professional
          accounting standards mentioned in paragraph 12. above, in accordance
          with accounting standards applicable in the Autonomous City of Buenos
          Aires.

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

          a)   The financial statements of Grupo Financiero Galicia S.A. and its
               consolidated financial statements have been transcribed to the
               "Inventory and Balance Sheet" book and are in compliance with the
               provisions of the Corporations Law and pertinent resolutions of
               the CNV.

          b)   The financial statements of Grupo Financiero Galicia S.A. and its
               consolidated financial statements stem from accounting records
               kept in all formal respects as called for by prevailing legal
               rules, which maintain the same security and integrity conditions
               as those authorized by the CNV.

          c)   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.
<PAGE>

          d)   As of December 31, 2003, Grupo Financiero Galicia S.A.'s debt
               accrued towards the Integrated Pension and Survivors' Benefit
               System, according to the accounting records, amounted to $
               10,073.88 (US$3,438), which were not yet due at that date.

Autonomous City of Buenos Aires, February 5, 2004

                                         PRICE WATERHOUSE & CO.

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