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, 2004 and 2003
presented in comparative format

                                       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 year ended December 31, 2004, presented in comparative format
                   Report of the Supervisory Syndics Committee
                  For the fiscal year ended December 31, 2004.
                             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                                             61

Income Statement                                                             62

Statement of Changes in Shareholders' Equity                                 63

Statement of Cash Flows                                                      64

Notes to Financial Statements                                                65

Schedules                                                                    98

Information  required in addition to the Notes to Financial Statements by
Section 68 of the Buenos Aires Stock Exchange regulations                   105

Supplementary  and  Explanatory  Statement by the Board of Directors
required by Section 2 of the  Accounting Documentation Rules of the
Cordoba Stock Exchange Regulations                                          108

Informative Review                                                          111

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  No. 456 - Piso 2
                              Autonomous City of Buenos Aires
Principal line of business:   Financial and Investment activities

6th fiscal year
For the fiscal year ended December 31, 2004,
In comparative format with the previous 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:                           11,891
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, 2004                                     22.65%

Percentage of votes to which the
Controlling Company is entitled as of
December 31, 2004                            63.42%

   CAPITAL STATUS as of December 31, 2004 (Note 8 to the Financial Statements)
                             (In thousands of pesos)
                                     Shares
                                             Voting
                                             rights
                                              per
    Number                Type                share      Subscribed     Paid in

                Ordinary  class "A", face
 281,221,650    value of 0.001                  5          281,222       281,222
                Ordinary  class "B", face
  811,185,367   value of 0.001                  1          811,185       811,185
                Preferred  shares,   face
  149,000,000   value of 0.001                  -          149,000       149,000
1,241,407,017                                            1,241,407     1,241,407


                                       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, 2004 and December 31, 2003
                             (In thousands of pesos)

<TABLE>
<CAPTION>
                                                                                       12.31.04              12.31.03
                                                                                ----------------------------------------------------
ASSETS
<S>                                                                                   <C>                   <C>
                                                                                ----------------------------------------------------
 A.   CASH AND CASH EQUIVALENTS                                                             988.669                826.150
                                                                                ----------------------------------------------------
      -Cash                                                                                 442.494                400.699
      -Banks and correspondents                                                             546.175                424.603
      -Others                                                                                     -                    848
                                                                                ----------------------------------------------------
 B. GOVERNMENT AND CORPORATE SECURITIES                                                   5.534.097              6.408.265
                                                                                ----------------------------------------------------
      -Holdings of investment account securities
                                                                                            601.264              1.609.982
      -Holdings of trading securities                                                        37.105                 18.710
      -Unlisted government securities                                                     4.371.716              4.469.529
      -Securities issued by the BCRA                                                        508.544                309.201
      - Investments in listed corporate securities                                           16.086                  2.950
      -Allowances                                                                             (618)                (2.107)
                                                                                ----------------------------------------------------
 C. LOANS                                                                                 8.438.177              7.506.485
                                                                                ----------------------------------------------------
      -To the non-financial public sector
                                                                                          4.558.873              4.323.279
      -To the financial sector                                                              150.530                194.692
      -To the non-financial private sector and residents abroad                           4.361.393              4.165.829
        -Overdrafts                                                                         199.668                218.902
        -Notes                                                                            1.099.243              1.280.062
        -Mortgage loans                                                                     623.944                719.593
        -Pledge loans                                                                        92.889                 54.644
        -Consumer loans                                                                      58.161                 55.175
        -Credit card loans                                                                1.105.386                818.837
        -Others                                                                             772.996                498.616
        -Accrued Interest and quotation differences receivable                              414.400                523.080
        -Documented interest                                                                (5.286)                (2.485)
        -Unallocated collections                                                                (8)                  (595)
      -Allowances                                                                         (632.619)            (1.177.315)
                                                                                ----------------------------------------------------
 D. OTHER RECEIVABLES RESULTING FROM FINANCIAL BROKERAGE                                  6.697.688             6.094.704
                                                                                ----------------------------------------------------

       -Argentine Central Bank                                                               78.463                 69.846
      -Amounts receivable for spot and forward sales to be settled                           56.209                      -
      -Securities receivable under spot and forward purchases to be settled                 313.462                    138
      -Unlisted negotiable obligations                                                       20.384                103.792
      -Others not included in the debtor classification regulations                       5.973.345              5.736.462
      -Others included in the debtor classification regulations                             188.807                205.693
      -Accrued interest receivable not included in the debtor classification
      regulations                                                                            92.302                 79.158
      - Accrued interest receivable included in the debtor classification
      regulations                                                                             2.427                  1.623
      -Allowances                                                                           (27.711)              (102.008)
                                                                                ====================================================
</TABLE>
The accompanying Notes 1 to 22 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, 2004 and December 31, 2003
                             (In thousands of pesos)
<TABLE>
<CAPTION>
                                                                                       12.31.04              12.31.03
                                                                                ----------------------------------------------------
<S>                                                                                    <C>                   <C>
  E.   ASSETS UNDER FINANCIAL LEASES                                                        100.950                24.612
                                                                                ----------------------------------------------------
       -Assets under financial leases                                                       103.443                29.418
       -Allowances                                                                           (2.493)               (4.806)
                                                                                ----------------------------------------------------
  F.    EQUITY INVESTMENTS IN OTHER COMPANIES                                                82.819                87.067
                                                                                ----------------------------------------------------
       -In financial institutions                                                             3.029                 3.009
       -Others                                                                              108.714               141.916
       -Allowances                                                                         (28.924)              (57.858)
                                                                                ----------------------------------------------------
  G.    MISCELLANEOUS RECEIVABLES                                                           519.781               470.290
                                                                                ----------------------------------------------------
       -Debtors for sale of assets                                                              879                   185
       - Presumptive minimum income tax credit                                              138.010                89.262
       -Shareholders                                                                              -                 2.182
       -Others                                                                              353.507               365.843
       -Accrued interest on debtors for sale of assets                                           33                    40
       -Other accrued interest and adjustments receivable                                    64.263                67.055
       -Allowances                                                                         (36.911)              (54.277)
                                                                                ----------------------------------------------------
 H.    FIXED ASSETS                                                                         489.182               517.532
                                                                                ----------------------------------------------------
 I.    MISCELLANEOUS ASSETS                                                                 160.033               158.098
                                                                                ----------------------------------------------------
 J.    INTANGIBLE ASSETS                                                                    638.004               727.057
                                                                                ----------------------------------------------------
       -Goodwill                                                                            115.080               139.681
       -Organization and development expenses                                               522.924               587.376
                                                                                ----------------------------------------------------
 K.    UNALLOCATED ITEMS                                                                      1.154                 2.594
                                                                                ----------------------------------------------------
       TOTAL ASSETS                                                                      23.650.554            22.822.854
                                                                                ====================================================
</TABLE>
The accompanying Notes 1 to 22 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, 2004 and 2003
                             (In thousands of pesos)
<TABLE>
<CAPTION>
                                                                                            12.31.04          12.31.03
                                                                                ----------------------------------------------------
<S>                                                                                             <C>                  <C>
  LIABILITIES
                                                                                ----------------------------------------------------
 L. DEPOSITS                                                                                    6.756.913            5.583.991
                                                                                ----------------------------------------------------
       -Non-financial public sector                                                               131.932               12.412
       -Financial sector                                                                           17.157               19.460
       -Non-financial private sector and residents abroad                                       6.607.824            5.552.119
         -Current accounts                                                                      1.192.474              902.438
         -Savings accounts                                                                      1.638.694            1.080.153
         -Time deposits                                                                         3.415.788            2.838.480
         -Investment accounts                                                                         383                  184
         -Others                                                                                  280.220              533.626
         -Accrued interest and quotation differences payable                                       80.265              197.238
                                                                                ----------------------------------------------------
 M.
       OTHER LIABILITIES RESULTING FROM FINANCIAL BROKERAGE                                    14.056.567           15.099.421
                                                                                ----------------------------------------------------
       -Argentine Central Bank                                                                  8.059.550            8.132.902
        - Liquidity assistance loans                                                            5.321.697            5.579.978
         -Others                                                                                2.737.853            2.552.924
       -Banks and international entities                                                          772.393            2.735.480
       -Unsubordinated negotiable obligations                                                   3.348.652            2.392.909
       -Amounts payable for spot and forward purchases to be settled                              229.537                    -
       -Securities to be delivered under spot and forward sales to be settled                      56.155               99.604
       -Loans from domestic financial institutions                                                191.195              131.763
       -Others                                                                                    909.926            1.003.865
       -Accrued interest and quotation differences payable                                        489.159              602.898
                                                                                ----------------------------------------------------
 N.    MISCELLANEOUS LIABILITIES                                                                  300.612              235.466
                                                                                ----------------------------------------------------
       -Dividends payable                                                                               5                   46
       -Fees                                                                                        3.676                1.347
       -Others                                                                                    294.888              232.246
       -Adjustments and accrued interest payable                                                    2.043                1.827
                                                                                ----------------------------------------------------
 O.    PROVISIONS                                                                                 517.806              388.961
                                                                                ----------------------------------------------------
 P.    SUBORDINATED NEGOTIABLE OBLIGATIONS                                                        380.077                    -
                                                                                ----------------------------------------------------
 Q.    UNALLOCATED ITEMS                                                                            5.574                2.638
                                                                                ----------------------------------------------------
MINORITY INTEREST IN CONSOLIDATED ENTITIES OR COMPANIES                                           113.467               92.994
                                                                                ----------------------------------------------------
TOTAL LIABILITIES                                                                              22.131.016           21.403.471
                                                                                ====================================================
SHAREHOLDERS' EQUITY                                                                            1.519.538            1.419.383
                                                                                ----------------------------------------------------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY                                                     23.650.554           22.822.854
                                                                                ====================================================
</TABLE>
The accompanying Notes 1 to 22 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, 2004 and December 31, 2003
                             (In thousands of pesos)
<TABLE>
<CAPTION>
                                                                                         12.31.04             12.31.03
                                                                                ----------------------------------------------------
                                                                                ----------------------------------------------------
  DEBIT

<S>                                                                                      <C>                  <C>
                                                                                            24.834.267           23.799.818
                                                                                ====================================================
                                                                                ----------------------------------------------------
  CONTINGENT                                                                                16.956.681           16.598.309
                                                                                ----------------------------------------------------
  Loans obtained                                                                               107.302                    -
  Guarantees received                                                                       10.295.575           10.184.705
  Others not included in the debtor classification regulations                                  25.774                    -
  Contingencies re. contra items                                                             6.528.030            6.413.604
                                                                                ----------------------------------------------------
  CONTROL                                                                                    7.699.323            6.963.266
                                                                                ----------------------------------------------------
  Uncollectible loans                                                                          615.801              931.968
  Others                                                                                     6.911.058            5.868.749
  Control re. contra items                                                                     172.464              162.549
                                                                                ----------------------------------------------------
  DERIVATIVES                                                                                  173.069              165.411
                                                                                ----------------------------------------------------
  Derivatives re. contra items                                                                 173.069              165.411
                                                                                ----------------------------------------------------
  TRUST ACCOUNTS                                                                                 5.194               72.832
                                                                                ----------------------------------------------------
  Trust funds                                                                                    5.194               72.832
                                                                                ----------------------------------------------------
  CREDIT                                                                                    24.834.267           23.799.818
                                                                                ====================================================
                                                                                ----------------------------------------------------
  CONTINGENT                                                                                16.956.681           16.598.309
                                                                                ----------------------------------------------------
  Loans granted (unused balances)                                                              285.824              220.913
  Guarantees provided to the Argentine Central Bank                                          5.708.394            5.666.788
  Other guarantees provided included in the debtor classification regulations                  122.539              234.416
  Other guarantees provided not included in the debtor classification regulations              239.930              268.725
  Others included in the debtor classification regulations                                      57.107               33.279
  Others not included in the debtor classification regulations                                 140.010                   75
  Contingencies re. contra items                                                            10.402.877           10.174.113
                                                                                ----------------------------------------------------
  CONTROL                                                                                    7.699.323            6.963.266
                                                                                ----------------------------------------------------
  Valuables to be credited                                                                     172.296              162.396
  Others                                                                                           168                  153
  Control re. contra items                                                                   7.526.859            6.800.717
                                                                                ----------------------------------------------------
  DERIVATIVES                                                                                  173.069              165.411
                                                                                ----------------------------------------------------
  "Notional" value of put options written                                                      173.069              165.411
                                                                                ----------------------------------------------------
  TRUST ACCOUNTS                                                                                 5.194               72.832
                                                                                ----------------------------------------------------
  Trust liabilities re. contra items                                                             5.194               72.832
                                                                                ====================================================
</TABLE>
The accompanying Notes 1 to 22 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, 2004 and ended December 31, 2004
             presented in comparative format with the previous year
                             (In thousands of pesos)
<TABLE>
<CAPTION>

                                                                                        12.31.04              12.31.03
                                                                                ----------------------------------------------------
<S>                                                                                    <C>                   <C>

 A. FINANCIAL INCOME                                                                       1.391.585              1.452.074
                                                                                ----------------------------------------------------
      Interest on cash and cash equivalents                                                       44                     68
      Interest on loans to the financial sector                                                5.189                101.107
      Interest on overdrafts                                                                  28.254                 38.801
      Interest on notes                                                                       97.544                192.816
      Interest on mortgage loans                                                              67.935                 94.832
      Interest on pledge loans                                                                 6.706                 11.714
      Interest on credit card loans                                                          163.054                127.522
      Interest on other loans                                                                 26.050                 28.888
      Net income from government and corporate securities                                          -                 46.221
      Interest income on other receivables resulting from financial brokerage                 90.017                 98.663
      Net income from secured loans - Decree 1387/01                                         186.038                178.708
      Consumer price index adjustment (CER)                                                  559.744                474.079
      Salary variation index adjustment (CVS)                                                 28.909                 34.998
      Others                                                                                 132.101                 23.657
                                                                                ----------------------------------------------------
 B. FINANCIAL EXPENSES                                                                     1.167.444              1.304.816
                                                                                ----------------------------------------------------
      Interest on current account deposits                                                     4.858                  3.039
      Interest on savings account deposits                                                     4.124                  3.045
      Interest on time deposits                                                               90.511                201.766
      Interest on loans from the financial sector                                              6.146                  6.756
      Interest expense for other liabilities resulting from financial brokerage              204.547                340.567
      Other interest                                                                         323.245                408.764
      Net loss on government and corporate securities                                          7.027                      -
      Consumer price index adjustment (CER)                                                  501.831                187.532
      Others                                                                                  25.155                153.347
                                                                                ----------------------------------------------------
      GROSS BROKERAGE MARGIN                                                                 224.141                147.258
                                                                                ====================================================
 C.   LOAN LOSS PROVISION                                                                    190.232                286.428
                                                                                ----------------------------------------------------
 D.   INCOME FROM SERVICES                                                                   529.052                431.757
                                                                                ----------------------------------------------------
      In relation to lending transactions                                                    157.084                136.075
      In relation to borrowing transactions                                                  140.375                116.165
      Other commissions                                                                        8.035                  9.347
      Others                                                                                 223.558                170.170
                                                                                ----------------------------------------------------
 E.   EXPENSES FOR SERVICES                                                                   92.759                 70.358
                                                                                ----------------------------------------------------
      Commissions                                                                             40.899                 35.237
      Others                                                                                  51.860                 35.121
                                                                                ----------------------------------------------------
      MONETARY RESULT OF FINANCIAL BROKERAGE                                                       -               (14.157)
                                                                                ====================================================
</TABLE>

The accompanying Notes 1 to 22 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, 2004 and ended December 31, 2004
          presented in comparative format with the previous fiscal year
                             (In thousands of pesos)
<TABLE>
<CAPTION>
                                                                                       12.31.04              12.31.03
                                                                                ----------------------------------------------------
                                                                                ----------------------------------------------------
<S>                                                                                    <C>                  <C>

G.   ADMINISTRATIVE EXPENSES                                                                623.940                563.364
                                                                                ----------------------------------------------------
      Personnel expenses                                                                     296.733                243.501
      Directors' and syndics' fees                                                             4.040                  1.917
      Other fees                                                                              19.808                 21.294
      Advertising and publicity                                                               37.796                 20.020
      Taxes                                                                                   40.872                 29.806
      Other operating expenses                                                               179.983                204.599
      Others                                                                                  44.708                 42.227
                                                                                ----------------------------------------------------
      MONETARY RESULT OF OPERATING EXPENSES                                                        -                     84
                                                                                ----------------------------------------------------
      NET RESULT OF  FINANCIAL BROKERAGE                                                   (153.738)              (355.208)
                                                                                ====================================================
      RESULT OF MINORITY INTEREST                                                           (14.302)                (9.232)
                                                                                ----------------------------------------------------
H.    MISCELLANEOUS INCOME                                                                   514.606                719.207
                                                                                ----------------------------------------------------
      Net income from long-term investments                                                    2.990                      -
      Penalty interest                                                                           895                  3.183
      Loans recovered and allowances reversed                                                366.645                563.838
      Consumer price index adjustment (CER)                                                    9.728                 54.381
      Others                                                                                 134.348                 97.805
                                                                                ----------------------------------------------------
I.    MISCELLANEOUS LOSSES                                                                   412.619                572.880
                                                                                ----------------------------------------------------
      Result of long-term investments                                                              -                 22.570
      Penalty interest and charges in favor of the BCRA                                           19                    125
      Loan loss provision for miscellaneous receivables and other provisions                 134.135                315.167
      Consumer price index adjustment (CER)                                                      336                  1.827
      Amortization of differences arising from court resolutions                             121.010                 77.880
      Others                                                                                 157.119                155.311
                                                                                ----------------------------------------------------
      MONETARY RESULT OF OTHER OPERATIONS                                                          -                (3.517)
                                                                                ----------------------------------------------------
      PRE-TAX NET LOSS                                                                      (66.053)              (221.630)
                                                                                ----------------------------------------------------
K.    INCOME TAX                                                                              43.818                    590
                                                                                ====================================================
      LOSS FOR THE YEAR                                                                    (109.871)              (222.220)
                                                                                ====================================================
</TABLE>
The accompanying Notes 1 to 22 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, 2004 and ended December 31, 2004
          presented in comparative format with the previous fiscal year
                             (In thousands of pesos)
<TABLE>
<CAPTION>
                                                                                         12.31.04             12.31.03
                                                                                ----------------------------------------------------
 <S>                                                                                     <C>                 <C>

  Changes in cash
  Cash and cash equivalents at the beginning of the year                                     826.150               576.838
  Increase in cash                                                                           162.519               249.312
                                                                                ----------------------------------------------------
  Cash and cash equivalents at the end of the year                                           988.669               826.150
                                                                                ====================================================
  Reasons for changes in cash
  Financial income collected                                                                 954.628             1.200.101
  Income from services collected                                                             529.374               432.199
  Less:
  Financial expenses paid                                                                  (499.539)             (621.435)
  Expenses for services paid                                                                (88.065)              (67.232)
  Administrative expenses paid                                                             (514.297)             (461.778)
                                                                                ----------------------------------------------------
  Cash provided by operations                                                                382.101               481.855
                                                                                ====================================================
  Other sources of cash
  Increase in deposits, net                                                                1.619.200             1.228.435
  Decrease in government and corporate securities, net                                       518.738                     -
  Decrease in other receivables resulting from financial brokerage, net                            -               145.140
  Other sources of cash                                                                      239.046               124.505
                                                                                ----------------------------------------------------
  Total sources of cash                                                                    2.376.984             1.498.080
                                                                                ----------------------------------------------------
  Other uses of cash
  Increase in government and corporate securities, net                                             -             (211.324)
  Increase in loans, net                                                                   (963.446)             (242.351)
  Increase in other receivables resulting from financial brokerage, net                    (253.534)                     -
  Increase in other assets, net                                                            (214.751)             (108.305)
  Decrease in other liabilities resulting from financial brokerage, net                    (772.517)             (941.179)
  Decrease in other liabilities, net                                                        (77.713)              (19.456)
  Other uses of cash                                                                       (106.403)             (198.921)
  Repayment of principal and interest on restructured debt                                 (208.202)                     -
                                                                                ----------------------------------------------------
  Total uses of cash                                                                     (2.596.566)           (1.721.536)
                                                                                ----------------------------------------------------
  Monetary result of cash and cash equivalents                                                     -               (9.087)
                                                                                ----------------------------------------------------
  Increase in cash                                                                           162.519                249.312
                                                                                ====================================================
 </TABLE>
 The accompanying Notes 1 to 22 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
                            ended December 31, 2004
                        presented in comparative format
                             (In thousands of pesos)

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 National Securites Commission (CNV). As required by
               the regulations mentioned above, the financial statements are
               presented in comparative format with the previous fiscal 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 (Argentine GAAP),
               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 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.

                                       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)
                            (In thousands of pesos)

NOTE 2:        (Continued)

               During the March-September 2003 period, a deflation rate of
               approximately 2% was recorded, which had no substantial impact on
               the financial statements.

NOTE 3:        ACCOUNTING POLICIES

               Below are the most important accounting policies used in
               preparing the consolidated financial statements:

               a.   Financial statement consolidation

                    The financial statements of Grupo Financiero Galicia S.A.
                    have been consolidated on a line-by-line basis with the
                    financial statements of Banco de Galicia y Buenos Aires
                    S.A., Net Investment S.A., Galicia Warrants S.A. and
                    Sudamericana Holding S.A. (See Note 4 to the consolidated
                    financial statements).

                    Banco de Galicia y Buenos Aires S.A. is the Company's main
                    equity investment, a financial institution subject to the
                    BCRA rules. 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. and its subsidiaries'
                    assets and liabilities represent 99.21% and 98.86% of Grupo
                    Financiero Galicia S.A. total consolidated assets and
                    liabilities.

                    Banco de Galicia y Buenos Aires S.A. financial statements
                    include the figures corresponding to the operations of its
                    branches 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 (Argentine Banking GAAP) and, except
                    as mentioned in point c.1.d. of this Note, to professional
                    accounting standards (Argentine GAAP).

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

                    a. Assets and liabilities have been converted into pesos
                    applying the reference exchange rate released by the BCRA.

                                       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)
                             (In thousands of pesos)

NOTE 3:        (Continued)

                    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 period end. Income statement account balances were
                    converted into pesos applying the monthly average exchange
                    rate of the variations recorded in each month of the current
                    year.

                    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.

                    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 to currency of
                    February 2003, was approved according to the following
                    detail:

                    with prior year retained earnings: $ 353,724

                    with unrealized valuation difference for the net foreign
                    currency position: $ 1,463,937

                    with discretional reserves: $ 337,184

                    with equity adjustment fund - technical revaluation: $
                    95,827

               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..

                                       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)
                             (In thousands of pesos)

NOTE 3:        (Continued)

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

                    b.1. - Foreign currency assets and liabilities

                    These are stated at the reference 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 trading desk.

                    b.2. - Gold bullion

                    Gold bullion 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 Company follows the procedure described in item b.1. to
                    translate the U.S. dollar figures into Argentine pesos.

                    b.3. - Government and corporate securities

                    b.3.a. - Government securities

                    I) Holdings in investment accounts:

                    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 (see
                    Note 1 to financial statements under section "Compensation
                    to financial institutions") recorded at their technical
                    value.

                    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. If the
                    position of these securities and the balances receivable not
                    used as collateral for the subscription of the Hedge Bond
                    which were included in "Other receivables resulting from
                    financial brokerage" had been stated at market value, a
                    decrease of approximately $617,764 would have been recorded
                    in the shareholders' equity.

                    As of December 31, 2003, this caption also included the
                    holdings of Argentine Republic External Bills Series 75 at
                    Badlar rate and Argentine Republic External Bills Series 74
                    at Survey rate. Communique "A" 4084 dated January 30, 2004
                    established

                                       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)
                             (In thousands of pesos)

NOTE 3:        (Continued)

                    retroactive modifications in the valuation of these bonds
                    (see Note 12 to consolidated financial statements - Prior
                    year adjustments). For comparative purposes, those holdings
                    have been disclosed under "Unlisted Government Securities",
                    in these financial statements and valued as indicated in
                    point III below).

                    II) Holdings of trading securities:

                    These are stated at the closing quotation for each security
                    at period end, plus the value of matured amortization and
                    interest coupons receivable, less estimated selling
                    expenses, where applicable.

                    III) Unlisted:

                    As of December 31, 2004, Banco de Galicia y Buenos Aires
                    S.A. carries the following holdings:

                    a) Secured Bonds in Pesos

                    These bonds have been valued in accordance with Communique
                    "A" 3911 and supplementary rules, as mentioned in this Note,
                    under section "National secured loans and provincial secured
                    bonds".

                    The holding of these bonds is used as collateral for the
                    assistance loan from the BCRA, as mentioned in Note 1 to
                    financial statements, under section "treatment of
                    extraordinary assistance loans granted by the BCRA to
                    financial institutions" and for the subscription of the
                    Hedge Bond, as indicated in Note 1 to financial statements,
                    under section "compensation to financial institutions".

                    b) Unpaid and past due medium-term US dollar External Bills

                    In order to meet its fiscal obligations under adverse
                    domestic and international capital market conditions, in May
                    2001 the Argentine Government agreed with the leading
                    financial institutions and enterprises on the issuance of
                    the "Patriotico" bond for a face value of US$ 1,000,000
                    thousand. This bond was subsequently issued for higher
                    amounts to enable financing Treasury Bills which fell due
                    between July and December 2001.

                                       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)
                             (In thousands of pesos)

NOTE 3:        (Continued)

                    In order to contribute to improving Argentina's fiscal
                    situation, Banco de Galicia y Buenos Aires S.A. subscribed
                    instruments called "2001-2004 Argentine Republic External
                    Bills in US dollars at Survey rate plus 4.95%" and
                    "2001-2004 Argentine Republic External Bills in US dollars
                    at Badlar rate plus 2.98%" for a face value of US$ 231,000
                    thousand. The original subscription amount was increased by
                    US$ 50,000 thousand (face value) because of the acquisition
                    of the ABN Amro Bank operations in October 2001.

                    The issuance of these securities was authorized by Decree
                    1588/93, as amended by Decree 967/2001 and Resolutions Nos.
                    63/2001 and 23/2001 of the Treasury and Finance Departments,
                    respectively. These securities are entitled to a tax credit
                    option, as they grant the right to allocate the amortization
                    and/or past due interest services on them to the payment of
                    national tax debts. This possibility has been suspended by
                    Decree 493/2004.

                    Given the special characteristics of these securities, the
                    Argentine Government excluded them from the local debt swap
                    implemented under Decree 1387/01 in November 2001. Thus,
                    Banco de Galicia y Buenos Aires S.A. was unable to exchange
                    the above mentioned External Bills for Secured Loans.

                    Furthermore, under issue conditions, those securities were
                    governed by foreign laws, so they were excluded from the
                    "conversion to pesos" of the public debt, as established by
                    Law 25561 and Decrees 214/02 and 471/02.

                    Until November 30, 2004 the External Bills had been recorded
                    at the value established by BCRA Communique "A" 3756 because
                    Banco de Galicia y Buenos Aires S.A. has offered them as
                    collateral for the advance for the subscription of the hedge
                    bond. The book value is 95.76% for each US dollar of face
                    value, plus unpaid and past due interest coupons, until the
                    definitive suspension of the regime that allowed those Bills
                    to be used to meet fiscal obligations.

                    The adoption of this criterion is based on the fact that
                    these securities are encompassed by Section 15, subsect. d)
                    of Decree 905/02, though their eligibility to be used as
                    collateral is subject to the prior approval of the MECON and
                    the BCRA.

                    The External Bills have been recorded as eligible for the
                    foreign debt swap the Argentine Government is carrying out.

                                       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)
                             (In thousands of pesos)

NOTE 3:        (Continued)

                    Given that Banco de Galicia y Buenos Aires S.A. has decided
                    to accept that swap offer, as from December 31, 2004, the
                    External Bills have been stated at present value of cash
                    flows from the Secured Bonds, and the interest accrued after
                    December 31, 2001 has been index-adjusted, as specified by
                    Communique "A" 4084, points 1 v) and 5, the parity proposed
                    by the Argentine Government being 33.7%. The provisions of
                    BCRA Communique "A" 4270 enable mitigating the effect on
                    banks' equity.

                    In January 2005, Banco de Galicia y Buenos Aires S.A.
                    decided to accept the offer to exchange its holding of
                    medium-term External Bills, Series 74 and 75, for a face
                    value of US$ 280,471 thousand, for "Discount Bonds in Pesos"
                    and "GDP-linked marketable securities" issued under the
                    conditions established by Annexes IV and V, respectively, to
                    Decree 1735/04, within the framework of the Argentine debt
                    restructuring.

                    As envisaged in that Decree, this offer enables Banco de
                    Galicia y Buenos Aires S.A. to receive new instruments for
                    an original principal amount equal to 33.7% of the "eligible
                    debt", which is equal to the unamortized principal at
                    December 31, 2001, plus past due and unpaid interest at that
                    date.

                    BCRA Communique "A" 4270 implicate mitigating the effect the
                    acceptance of the exchange offer may have on the financial
                    institutions' equity and allows "Discount Bonds in Pesos"
                    and "GDP-linked marketable securities" to be recorded at the
                    lower of the accounting balance, pursuant to current
                    regulations -points 1 v) and 5) of Communique "A" 4084 and
                    supplementary rules-, and the total balance of the nominal
                    cash flow to be generated until maturity, under the issue
                    conditions of those bonds. This valuation will be reduced by
                    the amounts receivable for the servicing of those bonds, no
                    accrued interest therefore being calculated.

                    c) The Fiscal Credit Certificates have been stated at
                    technical value, as they will be used to meet tax
                    obligations.

                    d) As of December 31, 2004, the other holdings had been
                    valued at cost plus interest accrued at year end, where
                    applicable.

                    IV) Securities issued by the BCRA:

                                       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)
                             (In thousands of pesos)

NOTE 3:        (Continued)

                    These securities were valued at year-end market quotation
                    for each security.

                    b.3.b. - Listed corporate securities

                    These securities are valued at year-end market quotation,
                    net of estimated selling expenses, where applicable.

                    b.4. National secured loans and provincial secured bonds

                    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 face value, at a rate
                    of exchange of $ 1=US$ 1 and in the same currency as that of
                    the converted obligation.

                    The BCRA established that the positive difference between
                    the carrying value of the Secured Loans and the book value
                    of the securities exchanged is to be recorded in an asset
                    adjustment account and charged to income monthly, 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 under Argentine GAAP, the shareholders' equity of
                    Banco de Galicia y Buenos Aires S.A. would have decreased by
                    $ 446,688 (see point c.1.c.1 of this Note) at the exchange
                    date (November 5, 2001).

                    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).

                                       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)
                             (In thousands of pesos)

NOTE 3:        (Continued)

                    Banco de Galicia y Buenos Aires S.A. has also participated
                    in the restructuring of the provincial government debt.
                    Decree No. 1579/02 established a voluntary provincial
                    government debt exchange for bonds (BOGAR) or loans
                    (Promissory Notes) issued by the Fiduciary Fund for
                    Provincial Development (FFDP) and secured by taxation
                    revenues the National Government shares with the provinces,
                    for a term of 16 years, to be amortized in 156 monthly
                    consecutive instalments from March 4, 2005 at a fixed 2%
                    annual interest rate and adjusted by applying the CER. Such
                    Decree also considered the financial assistance granted to
                    the Argentine provinces through loans to the FFDP to be
                    eligible for the exchange. This portfolio was not eligible
                    under Decree No. 1387/01 which had established the first
                    exchange of government debt for secured loans that took
                    place in November 2001.

                    As envisaged in Section 3, subsection k) of that Decree,
                    Banco de Galicia y Buenos Aires had opted to exchange the
                    BOGAR to be received under the exchange for Promissory
                    Notes. Considering that this option will not be exercised by
                    Banco de Galicia y Buenos Aires S.A. in the near future,
                    these instruments have been disclosed in these financial
                    statements under "Unlisted government securities".

                    As established by BCRA rules, Secured Loans, government
                    securities not subject to the minimum capital requirement to
                    cover market risk, mainly government securities not listed
                    on stock exchanges, promissory notes and secured bonds
                    issued by the Fiduciary Fund for the Provincial Development
                    and other financing to the public sector held in financial
                    institutions' portfolios must be carried at the lower of
                    "present value" or "technical value". The "present value" is
                    defined as the "net present value" of a cash flow structure,
                    determined under contractual conditions, and discounted at
                    the rate of 3% set by the BCRA until December 2003, 3.25%
                    for the January-June 2004, then increased monthly by 0.04 in
                    the July- October 2004 period, by 0.05% in November 2004 and
                    by 0.04% in December 2004, a rate of 3.50% having been
                    applied to the latter month. The "technical value" is the
                    index-adjusted amount of each instrument under contractual
                    conditions.

                                       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)
                             (In thousands of pesos)

NOTE 3:           (Continued)

                    As of December 31, 2004, 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, 2004, 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 $
                    87,334 to the December 31, 2004 results for this item. In
                    the previous year, application of this criterion would have
                    led to a charge of $ 132,286 to results, considering the
                    prior year adjustment.

                    The assets used as collateral for advances granted by the
                    BCRA for the subscription of the bonds envisaged in Sections
                    10, 11 and 12 of Decree 905/02, ratified by Section 71 of
                    Law 25827, have been recorded at the value admitted for
                    purposes of the creation of guarantees, as called for by
                    Communique "A" 3911, and complementary rules. The figures
                    for the previous period have been modified for comparative
                    purposes according to this criterion (see Note 12 - Prior
                    year adjustment).

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

                    For foreign currency transactions and local currency
                    transactions with a principal adjustment clause, 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 under legal or contractual
                    conditions, was accrued, as indicated in Note 1 to the
                    consolidated financial statements, under Sections "Loans and
                    other financing", "Deposits with the financial system" and
                    "Public Debt".

                    b.6. - Certificates of participation in financial trusts

                                       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)
                             (In thousands of pesos)

NOTE 3:           (Continued)

                    Certificates of participation in financial trusts 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

                    Assets under financial leases are stated at the acquisition
                    cost less accumulated depreciation, plus CER where
                    applicable.

                    b.8. - Equity investments in other companies

                    b.8.a. - Investments 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, 2004 because at the date of these
                    financial statements that 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 were recognized.

                    Galicia Capital Markets S.A records a deficit in its equity,
                    so a provision for $ 8,350 has been recorded as of December
                    31, 2004.

                    Irrevocable capital contributions that were made in Tarjeta
                    Naranja S.A. and Tarjetas del Mar S.A. within the process
                    for restructuring debts with Banco de Galicia y Buenos Aires
                    S.A. have been disclosed at original values. In the case of
                    Tarjetas del Mar S.A., a valuation allowance for $ 51,122
                    has been recorded as of December 31, 2004.

                    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

                                       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)
                             (In thousands of pesos)

NOTE 3:        (Continued)

                    equity, as disclosed in Note 1 to these financial statements
                    under section "Situation of Banco de Galicia y Buenos Aires
                    S.A. and its subsidiaries".

                    The financial statements of those entities were converted
                    into pesos as mentioned in paragraph 5 of point a. of this
                    Note.

                    - Minority interests

                    Argentine:

                    Minority interests have been valued at cost restated as
                    mentioned in paragraphs 2, 3 and 4 of Note 2 to the
                    financial statements, plus stock dividends.

                    Foreign:

                    Minority interests in foreign entities are stated at 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 investments into local
                    currency.

                    b.8.b. - In other companies

                    - Minority interests

                    Argentine:

                    Argentine equity investments are stated at their acquisition
                    cost restated as mentioned in paragraphs 2, 3 and 4 of Note
                    2 to the financial statements, plus stock dividends.

                    A valuation allowance has been set up for the amount by
                    which it is estimated that the equity investments in
                    Argencontrol S.A., Alfer S.A., Galicia Inmobiliaria S.A.,
                    Coelsa S.A., Aguas Provinciales de Santa Fe S.A., Aguas
                    Cordobesas S.A. and Net Investment S.A. are overstated in
                    relation to their equity value.

                    Foreign:

                    Foreign equity investments 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 investments
                    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.

                                       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)
                             (In thousands of pesos)

NOTE 3:        (Continued)

                    b.9. - Fixed assets and miscellaneous assets

                    Fixed assets and miscellaneous assets have been valued at
                    cost restated (see Note 2 above), plus the appreciation in
                    the value of the real estate properties which include the
                    effect of a technical revaluation made in 1981, less
                    accumulated depreciation.

                    The depreciation of these assets is determined on the basis
                    of their estimated useful lives, expressed in months. A full
                    month's depreciation is recognized in the month in which an
                    asset is acquired, while no depreciation is recognized in
                    the month in which it is sold or retired, over a maximum of
                    600 months for real estate properties, 120 months for
                    furniture and fixtures and 60 months for the rest of assets.

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

                    b.10. - Other miscellaneous assets

                    Miscellaneous assets are valued at their restated
                    acquisition cost (see Note 2 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 Note 2 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

                                       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)
                             (In thousands of pesos)

NOTE 3:        (Continued)

                    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, under section "Legal
                    actions requesting protection of constitutional rights".

                    b.12. - Allowance for loan losses and provision for
                    contingent liabilities

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

                    b.13. - Shareholders' equity

                    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 "Adjustment to shareholders' equity- Capital
                    adjustment" account.

                    Furthermore, a prior year adjustment has been recorded as of
                    December 31, 2004 (see Note 12).

                    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.

                                       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)
                             (In thousands of pesos)

NOTE 3:        (Continued)

                    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.

                    b.14. - Income tax

                    As of December 31, 2004, Banco de Galicia y Buenos Aires
                    S.A. recorded no income tax charge because it reported a tax
                    loss at that date.

                    The income tax charge reported by Banco de Galicia y Buenos
                    Aires S.A. has been determined in accordance with BCRA
                    rules, which do not contemplate the application of the
                    deferred tax method.

                    b. 15 - Presumptive minimum income tax

                    Pursuant to Section 13 of Law 25063, as amended by Law
                    25360, the payments on account of the tax on presumptive
                    minimum income, not offset against income tax for each year,
                    may be computed as a payment on account of the latter tax in
                    any of the following 10 fiscal years.

                    Recognition of this payment on account and its
                    recoverability arises on the ability to generate sufficient
                    taxable income in future years for offsetting purposes,
                    based on projections prepared in conformity with the
                    provisions of BCRA Communique "A" 4111 and supplementary
                    rules.

                    Below is a detail of the tax credits and their probable
                    offsetting date:

Tax credit             Date of generation           Probable offsetting date

  11,702                          2001                                  2010
  38,765                          2002                                  2010
  40,146                          2003                                2010/2011
  25,299                          2004                                  2011

                    In addition to the statement made in the preceding
                    paragraphs, as of December 31, 2004, Tarjetas Regionales
                    S.A. records in its assets the tax on presumptive minimum
                    income for $ 20,020, while as of December 31, 2003 it
                    amounted to $ 12,561.

                                       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)
                             (In thousands of pesos)

NOTE 3:        (Continued)

                    b.16. - Severance payments

                    Banco de Galicia y Buenos Aires S.A. directly expenses the
                    severance payments.

                    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 severance payments".

                    As of December 31, 2004 the maximum risk faced by Banco de
                    Galicia y Buenos Aires S.A. in respect of severance payments
                    amounted to approximately $ 176,593. As of December 31,
                    2003, the total amount in this respect was $ 124,052.

                    c. Differences between Argentine Central Bank rules and
                    professional accounting standards applicable in the
                    Autonomous City of Buenos Aires

                    Through C.D. Resolutions Nos. 238/01, 243/01, 261/01, 262/01
                    and 187/02, the Professional Council in Economic Sciences of
                    the Autonomous City of Buenos Aires (CPCECABA) approved
                    Technical Pronouncements Nos. 16, 17, 18, 19 and 20 with
                    certain modifications, adding changes to the valuation and
                    disclosure accounting standards, the application of which is
                    mandatory for fiscal years commencing as from July 1, 2002
                    and the interim periods comprised in those fiscal years.
                    Furthermore, MD Resolution No. 5/2003 approved Technical
                    Pronouncement No. 21, coming into force for fiscal years
                    commencing as from April 2003.

                    National Securities Commission (CNV) General Resolutions
                    Nos. 434/03 and 459 adopted, with certain modifications,
                    Technical Pronouncements Nos. 16 to 21 on the basis of the
                    resolutions issued by the CPCECABA

                    At the date these financial statements were prepared, the
                    Central Bank had not yet adopted these rules. 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 description of the main differences between
                    Argentine Central Bank rules and professional accounting
                    standards applicable in the Autonomous City of Buenos Aires:

                    c.1. Valuation criteria

                                       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)
                             (In thousands of pesos)

NOTE 3:        (Continued)

                    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. 441/03,
                    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 Argentine GAAP 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.

                    c.1.b. 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 Argentine GAAP applicable 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.
                    Application of this criterion would lead to an increase of
                    approximately $300,000 in assets.

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

                                       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)
                             (In thousands of pesos)

NOTE 3:             (Continued)

                    c.1.c.1. National secured loans and provincial secured
                    bonds.

                    As established by Decree No. 1387/01 dated November 6, 2001,
                    during the fiscal year ended December 31, 2001 Banco de
                    Galicia y Buenos Aires S.A. and the companies controlled by
                    Sudamericana Holding S.A. exchanged with the National State
                    National Government Securities (classified and valued by
                    Banco de Galicia y Buenos Aires S.A. as "Investment
                    accounts", according to the criteria established by the
                    Argentine Central Bank) for national secured loans, which at
                    December 31, 2004 and 2003 have been recorded under "Loans
                    to the Public Sector". In addition, as established by Decree
                    1579/02, Banco de Galicia y Buenos Aires S.A. and the FFDP
                    exchanged loans to provincial governments for Provincial
                    Secured Loans (BOGAR), which at December 31, 2004 and 2003
                    have been disclosed under "Unlisted government securities".
                    That Bank opted to exchange those bonds for promissory
                    notes.

                    At those dates, Banco de Galicia y Buenos Aires S.A. valued
                    the two types of assets at the lower of present or technical
                    value, as established by Argentine Central Bank Communique
                    "A" 3911, except for those used as collateral for advances
                    granted by the BCRA for the subscription of the bonds
                    foreseen in Sections 10, 11 and 12 of Decree 905/02.

                    Under the provisions of CD Resolution No. 290/01 of the
                    CPCECABA, the restructured assets should have been valued as
                    follows:

                    - National secured loans: 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, where applicable, plus interest accrued at
                    the internal rate of return until the end of each period.

                    - Provincial secured bonds: at market value. No significant
                    volumes of these securities have been traded on the market.
                    The known market values may not be representative of the
                    realizable value of those assets.

                    These assets, in addition to the bonds described in the
                    preceding section, are used as collateral for rediscounts
                    and advances obtained from the BCRA and/or have been
                    received as collateral for foreign debts restructured by
                    Banco de Galicia y Buenos Aires S.A. and its subsidiary in
                    Uruguay, as detailed in Note 1 under section "Situation of
                    Banco de Galicia y Buenos Aires S.A. and its subsidiaries",
                    and the

                                       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)
                             (In thousands of pesos)

NOTE 3:             (Continued)

                    resulting cash flow is expected to be used to settle those
                    debts. In view of this, any variations in their current
                    values should not impact on Banco de Galicia y Buenos Aires
                    S.A. and subsidiaries' balance sheet.

                    c.1.c.2. Accounting disclosure of effects generated by court
                    decisions on deposits

                    As of December 31, 2004 Banco de Galicia y Buenos Aires S.A.
                    carries an asset for $ 451,428 ($650,318 of original value
                    net of $ 198,890 corresponding to accumulated amortization)
                    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 Argentine GAAP, such asset
                    may be recorded as a receivable, but valued on the basis of
                    the best estimate of the recoverable amounts and recovery
                    terms.

                    c.1.c.3. Compensation per Sections 28 and 29 of National
                    Executive Branch Decree 905/02 - Compensation for
                    application of the CER/CVS

                    As of December 31, 2004 and 2003, 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.

                    Under Argentine GAAP applicable 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 above,
                    except where their treatment as investments to be held to
                    maturity applies.

                    At the date these financial statements were prepared, the
                    parity value of BODEN 2012 is approximately 84% of their
                    technical value.

                    Banco de Galicia y Buenos Aires S.A. has written off the
                    compensation amount for asymmetric indexation through a
                    prior year adjustment, according to the criterion
                    established by BCRA Communique "A" 4202. Under professional
                    accounting standards, that compensation amount should be
                    written off against the results for the year.

                                       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)
                             (In thousands of pesos)

NOTE 3:             (Continued)

                    c.1.c.4. Allowances for 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 Argentine GAAP, those allowances must be
                    estimated on the basis of the uncollectibility risk
                    attaching to those assets.

                    c.1.d. - Conversion of financial statements

                    The conversion to pesos of the financial statements of the
                    foreign branches and subsidiaries for purposes of
                    consolidation with Banco de Galicia y Buenos Aires S.A.
                    financial statements, prepared according with dispositions
                    established by the BCRA, differs from applicable
                    professional accounting standards (Technical Pronouncement
                    No. 18). These professional accounting standards require
                    that:

                    (a) the measurements in the financial statements to be
                    converted to pesos that are stated in period-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 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. of this Note does not have a significant impact
                    on the disclosure of Banco de Galicia y Buenos Aires S.A.
                    financial statements.

                    c.2. Statement of cash flows

                    The criterion for compiling the statement of cash flows of
                    Grupo Financiero Galicia S.A. established by the Argentine
                    Central Bank in its Circular CONAU 1 differs from that of
                    Technical Pronouncement No. 19.

                    Banco de Galicia y Buenos Aires S.A. and Grupo Financiero
                    Galicia S.A. have not quantified the effect derived from the
                    application of the new Technical Pronouncements on its
                    financial statements as of December 31, 2004, except in the
                    cases expressly specified.

                                       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)
                             (In thousands of pesos)

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, 2004, Net Investment S.A.
               held the following percentages of equity investments:

               ISSUING COMPANY                    % OF CAPITAL        % OF VOTES

               B2Agro S.A.                               99.99             99.99

               The financial statements of Sudamericana Holding S.A. have been
               adapted to cover a twelve-month period as of December 31, 2004,
               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 Compania de
               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, 2004, Sudamericana Holding S.A. held the following equity
               percentages:

               ISSUING COMPANY                    % OF CAPITAL        % OF VOTES

               Aseguradora de Personas Galicia
               S.A. (formerly Hartford Seguros
               de Vida S.A.) (*)                             -                 -

               Instituto de Salta Compania de
               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

                                       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)
                             (In thousands of pesos)

NOTE 4:        (Continued)

               (*) 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.

               (***) On December 15, 2004, Sudamericana Holding S.A., Swiss
               Medical S.A. and SMG INVESTMENT S.A. entered into a share
               purchase agreement involving 100% of the shares in Instituto de
               Salta Compania de Seguros de Vida S.A.

               The consolidated financial statements of Banco de Galicia y
               Buenos Aires S.A. as of December 31, 2004 and related comparative
               financial statements include the assets, liabilities and results
               of the controlled entities detailed below:

                             as of December 31, 2004

                                                                 PERCENTAGE OF
ISSUING COMPANY                               SHARES            INTEREST HELD IN

                                                                 TOTAL  POSSIBLE
                                       TYPE           NUMBER    CAPITAL   VOTES

BANCO GALICIA URUGUAY S.A.           Ordinary        13,375(*)  100.00   100.00
TARJETAS REGIONALES S.A.               Ord.     103,834,148     100.00   100.00
                                    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

* Stated at a face value of 1,000 Uruguayan pesos.

                             As of December 31, 2003

                                                                 PERCENTAGE OF
ISSUING COMPANY                               SHARES            INTEREST HELD IN

                                                                 TOTAL  POSSIBLE
                                       TYPE           NUMBER    CAPITAL   VOTES

BANCO GALICIA URUGUAY S.A.           Ordinary        13,375(*)  100.00   100.00
TARJETAS REGIONALES S.A.               Ord.     103,834,148     100.00   100.00
                                    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

* Stated at a face value of 1,000 Uruguayan pesos.

                                       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)
                             (In thousands of pesos)

NOTE 4:             (Continued)

<TABLE>
<CAPTION>
                                   As of December 31, 2004

                                                                  SHAREHOLDERS'
ISSUING COMPANY                       ASSETS      LIABILITIES        EQUITY         RESULTS

<S>                                   <C>          <C>              <C>              <C>
BANCO GALICIA URUGUAY S.A.            983.076      1.546.266        (563.190)        164.871
TARJETAS REGIONALES S.A.              840.045        743.831           96.214         70.803
GALICIA CAPITAL MARKETS S.A.(*)         7.745         16.095          (8.350)        (2.155)
GALICIA FACTORING Y LEASING S.A.        3.383             20            3.363            280
AGRO GALICIA S.A.                         103              8               95           (63)
GALICIA VALORES S.A. SOC. DE BOLSA     22.515          9.455           13.060          1.915
</TABLE>

(*) See Note 3b.8.a to the consolidated financial statements.

<TABLE>
<CAPTION>
                                   As of December 31, 2003

                                                                  SHAREHOLDERS'
ISSUING COMPANY                       ASSETS      LIABILITIES        EQUITY         RESULTS

<S>                                 <C>            <C>              <C>               <C>
BANCO GALICIA URUGUAY S.A.          1.615.093      2.333.165        (718.072)         69.016
TARJETAS REGIONALES S.A.              759.215        733.804           25.411         44.658
GALICIA CAPITAL MARKETS S.A.           17.799         23.993          (6.194)       (22.134)
GALICIA FACTORING Y LEASING S.A.        3.105             23            3.082        (1.423)
AGRO GALICIA S.A.                         164              6              158           (64)
GALICIA VALORES S.A. SOC. DE BOLSA     26.310         15.166           11.144          (400)
</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. have been
               consolidated on a line-by-line basis with those 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.

               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.

               Banco de Galicia y Buenos Aires S.A. holds 68.218548% of the
               capital stock and votes of Tarjetas Regionales S.A., while Banco
               de Galicia (Cayman) Limited (In Provisional Liquidation), holds
               the remaining 31.781452%

                                             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)
                             (In thousands of pesos)

NOTE 4:        (Continued)

               Furthermore, the December 31, 2004 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. 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:

               Company                         12.31.04            12.31.03

               Tarjetas Cuyanas S.A.              60%                 60%
               Tarjetas del Mar S.A.            99.999%              100%
               Tarjeta Naranja S.A.               80%                 80%
               Tarjeta Comfiar S.A.                -                  60%

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

               Company                         12.31.04            12.31.03

               Tarjeta Comfiar S.A.                -                  32%

               Tarjeta Naranja S.A. financial statements have in turn been
               consolidated with the financial statements of Cobranzas
               Regionales S.A., in which it holds 87.7% of voting stock.
               Furthermore, Tarjetas Cuyanas S.A. holds 12.3% of Cobranzas
               Regionales S.A.'s capital stock and voting rights.

               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 73.33%
               equity investment.

               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 ENTITIES 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 entities
               or companies" caption. The

                                       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)
                             (In thousands of pesos)

NOTE 5:        (Continued)

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

               As of December 31, 2004 and 2003, the percentages of minority
               interest are as follows:

                          Company                          12.31.04     12.31.03
     Banco de Galicia y Bs. As. S.A.                       6.40835%     6.41446%
     Net Investment S.A.                                   0.80104%     0.80181%
     Sudamericana Holding S.A.                             0.80099%     0.80175%
     Galicia Warrants S.A.                                 0.80104%     0.80181%
     B2Agro S.A.                                           0.80931%     0.81007%
     Net Investment B.V.                                   0.80104%     0.80181%
     Medigap Salud S.A. (formerly Hartford Salud S.A.)     0.80925%     0.81002%
     Instituto de Salta Seguros de Vida S.A.               0.80135%     0.80211%
     Galicia Retiro Cia. de Seguros S.A.                   0.80112%     0.80188%
     Galicia Vida Cia. de Seguros S.A.                     0.81086%     0.80199%
     Sudamericana Asesora de Seguros S.A.                  0.83405%     0.83482%
     Galicia Patrimoniales Cia. de Seguros S.A.            0.80925%     0.81002%

               The percentages of Banco de Galicia y Buenos Aires S.A.'s
               minority interests are as follows:

                                Company               12.31.04          12.31.03
                                                         %                 %
     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 Comunes de Inversion             0.015             0.015
     Tarjeta Comfiar S.A.                                 -               8.00
     Tarjetas Cuyanas S.A.                             40.00             40.00
     Tarjeta Naranja S.A.                              20.00             20.00
     Tarjetas del Mar S.A.                             0.001                -
     Galicia Advent Corporation Limited                26.67             42.11
     Cobranzas Regionales S.A.                         22.46             19.904

NOTE 6:        RESTRICTED ASSETS AND OTHER CONTINGENT LIABILITIES

               As of December 31, 2004, Banco de Galicia y Buenos Aires S.A.'s
               ability to dispose of the following assets pertaining to local
               branches was restricted as follows:

                                       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)
                             (In thousands of pesos)

NOTE 6:        (Continued)

               a. Funds and Government Securities

               The amount of $ 41,155 has been deposited in escrow as a
               guarantee towards third parties and $ 67,571 for collateral
               security margins under repo transactions.

               b. Special Accounts as Collateral for Transactions

               Special accounts have been opened 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, 2004 amounted to $ 75,800.

               c. Deposits in favor of the Argentine Central Bank

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

               - Communique "A" 1190 $ 533

               - Communique "A" 2923 $ 1,485

               d. Fund for assistance to financial institutions

               As of December 31, 2004 Banco de Galicia y Buenos Aires S.A. had
               deposited secured loans for $ 183,515 in guarantee of the Fund
               for assistance to Financial and Insurance Institutions.

               e. Guarantees provided to the Argentine Central Bank

               As of December 31, 2004, 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 liquidity assistance loan
               advances of $ 5,706,909.

               f. Equity investments 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, Banco de Galicia y Buenos Aires
               S.A. 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 October 27, 2004, the Appellate Court sustained the

                                       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)
                             (In thousands of pesos)

NOTE 6:        (Continued)

               claim filed by the insolvent company, leaving without effect the
               declaration of bankruptcy and converting the proceeding into a
               Cram Down process, pursuant to Section 48 of the Insolvency and
               Bankruptcy Law.

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

               Banco de Galicia y Buenos Aires S.A. has recognized a reserve for
               the amount it estimates it will be required to pay for this
               contingency.

               On March 25, 2004, the guarantee for $ 7,265 provided in favor of
               the Nacional State as security for compliance with the concession
               of Correo Argentino S.A. was executed. The related claim has been
               proved as a possible claim in the reorganization proceedings
               involving Correo Argentino S.A. Banco de Galicia y Buenos Aires
               S.A. has payed the guarantee under the conditions established by
               the National Communications Commission. Notice of this payment
               was given in the Correo Argentino S.A. reorganization
               proceedings.

               Both the investment and the receivables have been written off
               from assets.

               "Equity investments in other companies" includes shares whose
               transferability is subject to the prior approval of the National
               or Provincial authorities, where 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.

                                       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)
                             (In thousands of pesos)

NOTE 6:        (Continued)

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

               The Inter American Development Bank (IDB) requested that the
               shareholders of Aguas Argentinas S.A. grant loans to this company
               for it to be able to meet its commitments. On February 18, 2003
               and July 14, 2004, financial assistance was granted to Aguas
               Argentinas S.A. in the amount of US$ 598 thousand and US$ 6,300
               thousand, respectively.

               In view of a deficit in funds of Aguas Provinciales de Santa Fe
               S.A. notified by the International Finance Corporation (IFC), on
               November 5, 2003 a loan for an amount equivalent to US$ 329
               thousand was granted to that company by Banco de Galicia y Buenos
               Aires S.A.

               Since November 2004, Banco de Galicia y Buenos Aires S.A. has
               been negotiating a contribution of funds in Aguas Provinciales de
               Santa Fe S.A. with the IDB and the IFC, within the framework of
               the commitments undertaken as a shareholder.

               Furthermore, in the event of early termination of the concession
               contracts, under the terms thereof, Banco de Galicia y Buenos
               Aires S.A. and the other shareholders have guaranteed the IDB,
               Banco Europeo de Inversiones (BEI) and the IFC the pro rata
               collection of the financial assistance loans due from Aguas
               Argentinas S.A., Aguas Provinciales de Santa Fe S.A. and Aguas
               Cordobesas S.A., as the case may be.

               These guarantees have been recognized under Memorandum accounts -
               Other Credit Contingencies.

               On the basis of information known at December 31, 2004, Banco de
               Galicia y Buenos Aires S.A. has recognized a reserve for the
               amount it estimates it will have to pay for these contingencies.

               At the date these financial statements were prepared, Aguas
               Argentinas S.A. was still carrying out negotiations in relation
               to its activities with the Argentine Government. It is not
               possible to estimate the future development of those negotiations
               and the consequent effects on Banco

                                       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)
                             (In thousands of pesos)

NOTE 6:        (Continued)

               de Galicia y Buenos Aires S.A., though this matter is being
               regularly followed up and analyzed by the Management of that
               Bank.

               g. Guarantees provided as security for direct obligations:

               As of December 31, 2004 Banco de Galicia y Buenos Aires S.A.
               records guarantees provided as security for direct obligations
               for $ 208,921 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,
               Banco de Galicia y Buenos Aires S.A. undertakes to repurchase and
               replace the receivables assigned with others of similar
               characteristics in the event of default.

               As of December 31, 2003, the total amount of restricted assets
               was $ 6,380,343.

               In addition, as of December 31, 2004 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, 2004 this company held three shares of Mercado
               de Valores de Buenos Aires S.A. securing an insurance covering
               its transactions for $ 5,235. At the end of the previous year,
               restricted assets totaled $ 4,500.

               b. Tarjetas Cuyanas S.A.

               As of December 31, 2004, Banco Galicia y Buenos Aires S.A.
               ability to dispose of time deposits for $ 612 and $ 103 was
               restricted because this amount was earmarked to secure two
               Collection Agreements signed with the Revenue Board of the
               Province of Mendoza and Telefonica de Argentina, respectively. At
               the end of the previous year, its restricted assets totalled US$
               190 thousand.

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

               All company's assets are administered by the liquidators in favor
               of creditors until the debt restructuring plan has been
               completed.

               d. Banco Galicia Uruguay S.A.:

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

NOTE 6:        (Continued)

               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

               In order to secure compliance with contractual obligations, the
               parties to these agreements have agreed to deliver in trust to
               Banco de Galicia y Buenos Aires S.A. amounts to be invested
               according to the following detail:

Contract date         Trustor         Trust fund balance      Expiration date
                                        $      Thousands
                                                 of US$
  01.06.98        Eduardo Sumic y      11             31        07.07.07 (1)
                  Ercides Ciani

               b) Administration Trust Contracts

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

Contract date         Trustor         Trust fund balance      Expiration date
                                        $      Thousands
                                                 of US$

  12.23.02        Coca Cola de         1,070          -         12.31.07 (2)
                  Argentina S.A.
  02.23.04        Car Security            28          12        12.31.08 (2)

               c) Financial trust contract

               Purpose: to administer and exercise the financial ownership of
               the trust assets until the redemption of the debt securities.

                                       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)
                             (In thousands of pesos)

NOTE 7:        (Continued)

Contract date         Trustor         Trust fund balance      Expiration date
                                        $      Thousands
                                                 of US$

  01.28.04        Tarjeta Naranja III  3,959          -         08.01.10 (3)

               (1) This amount will be released on the due date or when
               instructions are received, as established in the pertinent
               contract.

               (2) These amounts will be released monthly until the earlier of
               the settlement date of trustor obligations or the due date.

               (3) These amounts will be released monthy until the redemption of
               the debt securities.

NOTE 8:        NEGOTIABLE OBLIGATIONS AND OTHER DEBT SECURITIES

               a) As of December 31, 2004, Banco de Galicia y Buenos Aires S.A.
               had the following outstanding negotiable obligation issues:

               a.1) Banco de Galicia y Buenos Aires S.A. - Ordinary Negotiable
               Obligations

               ISSUE DATE      RESIDUAL      MATURITY     RATE       ISSUE
                              FACE VALUE                           AUTHORIZED
                                 (IN                                 BY THE
                              THOUSANDS                             NATIONAL
                               OF US$)                             SECURITIES
                                                                   COMMISSION

                11.08.93      11,635(*)      10 years     9.00%     10.08.93

               (*) These amounts correspond to past due negotiable obligations
               issued but not exchanged.

               a.2) 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 thousand for issuing ordinary
               negotiable obligations, not convertible into shares which may be
               issued in pesos, US dollars or other currencies.

               As of December 31, 2004, Banco de Galicia y Buenos Aires S.A. had
               the following short and medium-term negotiable obligation issues
               outstanding under the above program:

               ISSUE DATE      RESIDUAL      MATURITY     RATE       ISSUE
                              FACE VALUE                           AUTHORIZED
                                 (IN                                 BY THE
                              THOUSANDS                             NATIONAL
                               OF US$)                             SECURITIES
                                                                   COMMISSION

                06.11.01         889(*)     1,653 days    Libor     04.22.98
                                                          plus 2%
                07.19.02      72,635(**)    1,840 days    7.875%    04.22.98
                07.19.02      43,161(**)    1,840 days    Libor -   04.22.98
                                                          6 months
                                                          plus 4%

                                       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)
                             (In thousands of pesos)

NOTE 8:        (Continued)

               (*)These amounts correspond to past due negotiable obligations
               issued but not exchanged.

               (**) Negotiable obligations in normal situation, issued as a
               result of the New York Branch debt restructuring, but not
               included in Banco de Galicia y Buenos Aires S.A. debt
               restructuring.

               In accordance with the provisions of the Negotiable Obligations
               Law and BCRA rules, the net proceeds from the Negotiable
               Obligations issue detailed in points a1) and a2) were used to
               provide 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 by current regulations.

               a.3) The Ordinary Meeting of Shareholders held on September 30,
               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 thousand
               or its equivalent in any other currency, 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), which took place on December 29, 2003 pursuant
               to Resolution 14708, or for any other longer term the CNV may
               authorize pursuant to regulations.

               On April 23, 2004, through Resolution 14773 the CNV authorized
               the issue of ordinary, not convertible into shares, senior and
               subordinated Negotiable Obligations, for a total face value of
               US$ 1,400,000 thousand or its equivalent in other currencies.

               The net proceeds of the negotiable obligations issued under the
               Program will be used to refinance the foreign debt, as required
               by Section 36 of the Negotiable Obligations Law, BCRA Communique
               "A" 3046 and its amendments, and other applicable regulations.

               As of December 31, 2004 Banco Galicia y Buenos Aires S.A. has the
               following outstanding Negotiable Obligation Issue Program:

               Ordinary Negotiable Obligations:

                                       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)
                             (In thousands of pesos)

NOTE 8:        (Continued)

     ISSUE DATE     RESIDUAL FACE       MATURITY       RATE            ISSUE
                        VALUE                                        AUTHORIZED
                    (in thousands                                    BY THE CNV
                       of US$)

      05.18.04         464,802             (1)         (*)          12.29.03 and
                                                                     04.27.04
      05.18.04         352,839             (2)      Libor plus      12.29.03 and
                                                       3.5%           04.27.04

               (1) The principal on the Negotiable Obligations due 2014 will be
               amortized semi-annually, commencing on January 1, 2010, in
               installments equal to 11.11% of the original principal amount,
               until their due date, January 1, 2014, when the remaining 11.12%
               of the original principal will fall due.

               (2) The principal on the Negotiable Obligations due 2010 will be
               amortized semi-annually, commencing on July 1, 2006, in
               installments equal to 12.5% of the original principal, until
               their due date, January 1, 2010, when the remaining 12.5 % of the
               original principal will fall due.

               (*) Interest shall accrue as from January 1, 2004 at a 3% fixed
               rate, increased by 1% each year until an annual rate of 7% is
               reached, from January 1, 2008 up to but not including January 1,
               2014.

               Subordinated Negotiable Obligations:

     ISSUE DATE     RESIDUAL FACE       MATURITY       RATE            ISSUE
                        VALUE                                        AUTHORIZED
                    (in thousands                                    BY THE CNV
                       of US$)

      05.18.04        223,666(*)           (1)         (2)          12.29.03 and
                                                                     04.27.04

               (1) These obligations will be fully amortized upon maturity, on
               January 1, 2019, unless their principal is previously redeemed at
               par, plus unpaid accrued interest and additional amounts, if any,
               fully or partially at the issuer's option at any time, after all
               Negotiable Obligations falling due in 2014 and 2010 have been
               fully redeemed.

               (2) Interest on Negotiable Obligations due in 2019 shall be
               payable in cash and in additional Negotiable Obligations due in
               2019 semi-annually in arrears, on January 1 and July 1 of each
               year, commencing on July 1, 2004. The Negotiable Obligations due
               in 2019 shall accrue interest payable in cash at an annual fixed
               rate of 6%, from January 1, 2004 up to but not including January
               1, 2014. Such interest rate shall be increased to 11% per annum
               from January 1, 2014 up to but not including January 1, 2019, the
               due date of the Negotiable Obligations due in 2019, unless they
               are previously redeemed. The principal shall accrue interest at
               an annual fixed rate of 5%, as from January 1, 2004, which will
               be payable on January 1, 2014 and January 1, 2019 in the form of
               negotiable obligations.

               (*) Includes US$ 5,455 thousand for the capitalization of
               interest that fell due on July 1, 2004, through additional
               Negotiable Obligations due in 2019. Furthermore, Grupo Financiero
               Galicia S.A. holds Subordinated Negotiable Obligations due in
               2019 for a face value of US$ 99,390 thousand, which include
               capitalized interest on the new Subordinated 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)
                             (In thousands of pesos)

NOTE 8:        (Continued)

               As of December 31, 2004, principal and interest on Negotiable
               Obligations amount to $ 3,541,232, net of expenses, including the
               Negotiable Obligations issued as a result of the debt
               restructuring.

               As of December 31, 2003, principal and interest on Negotiable
               Obligations, net of discounts, totaled $ 1,645,838.

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

               Complementarily with the measures adopted by Banco de Galicia y
               Buenos Aires S.A., during fiscal 2003 and 2004, some controlled
               entities restructured a large portion of their financial debt,
               the renegotiation of certain liabilities for negotiable
               obligations having yet to be concluded.

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

               As of December 31, 2003:

               a) Banco Galicia Uruguay S.A.

               a1) Negotiable Obligations

               ISSUE DATE      RESIDUAL FACE VALUE       MATURITY       RATE
                              (in thousands of US$)

               12.24.02           265.470               9 years          2%
               08.31.03            22.290               9 years        4.2319%
               08.31.03            16.982               2 years          2%
               08.31.03             3.981               5 years          2%

               a2) Subordinated Negotiable Obligations

               ISSUE DATE      RESIDUAL FACE VALUE       MATURITY       RATE
                              (in thousands of US$)

               12.24.02           43,000(*)             9 years          1%

               (*)  The Company holds 100% of these Subordinated Negotiable
                    Obligations.

               As   of December 31, 2004:

               a)   Banco Galicia Uruguay S.A.

               a.1) Negotiable obligations

                                       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)
                             (In thousands of pesos)

NOTE 8:        (Continued)

               ISSUE DATE      RESIDUAL FACE VALUE       MATURITY       RATE
                              (in thousands of US$)

               24.12.02           157,273               9 years          2%
               31.08.03            13,854               9 years        4.8606%
               31.08.03            13,994               2 years          2%
               31.08.03             1,990               5 years          2%

               a.2) Subordinated negotiable obligations

               ISSUE DATE      RESIDUAL FACE VALUE       MATURITY       RATE
                              (in thousands of US$)

               24.12.02            43,000 (*)           9 years          1%

               (*)The Company holds 100% of these Subordinated Negotiable
               Obligations.

               b) Tarjetas Regionales S.A.

               Include the following instruments issued by the subsidiaries of
               Banco de Galicia y Buenos Aires S.A. indicated below, which have
               been valued as follows:

               Tarjetas Cuyanas S.A.    Negotiable Obligations            13,372

               Tarjetas del Mar S.A.    Past due Negotiable Obligations      10

               Tarjetas Cuyanas S.A. Negotiable Obligations for $ 13,500 were
               issued in July 2004 and placed at a market value of $ 12,982. 83%
               of the funds received were used to settle financial liabilities,
               13% to settle commercial liabilities and 4% to settle tax
               liabilities.

               As of December 31, 2004, Tarjetas del Mar S.A. holds past due
               Negotiable Obligations as none of the offerings made by those
               companies under the liability restructuring process were
               accepted. Those obligations have been valued by Tarjetas del Mar
               S.A. in the amount they are expected to be redeemed. Should those
               obligations be valued at the free US dollar, the effect on
               liabilities and shareholders' equity would not be significant.

               In view of the foregoing, the maximum risk for the December 31,
               2004 financial statements of Grupo Financiero Galicia S.A. would
               not be significant.

                                       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)
                             (In thousands of pesos)

NOTE 8:        (Continued)

               Within the framework of the restructuring process involving the
               debts held by Tarjetas del Mar S.A. and Tarjeta Naranja S.A.,
               Banco de Galicia y Buenos Aires S.A. made irrevocable capital
               contributions for $ 51,122 and $ 20,000 in those companies. The
               irrevocable contribution in Tarjeta Naranja S.A. included an
               additional contribution of $5,000 from the minority shareholders
               of Banco de Galicia y Buenos Aires S.A. in support of the
               restructuring process.

               Tarjeta Naranja S.A.

               At the Meeting held on March 31, 2004, the shareholders of
               Tarjeta Naranja S.A. approved the creation of a global short and
               medium-term ordinary negotiable obligation issue program, not
               convertible for shares, for an outstanding face value of up to
               US$ 50,000 thousand, or its equivalent in another currency, in
               order to be placed through a public offering under the terms of
               Law No. 23576, as amended. The Board Meeting held on July 3, 2004
               set the pertinent issue terms and conditions.

               CNV Resolution No. 14920 dated October 7, 2004 authorized the
               creation and public offering of this Negotiable Obligation
               Program.

               On November 29, 2004, the Board of Directors of the Company
               resolved to issue Series I for up to $ 30,000, which finally
               materialized on January 18, 2005 and was placed at 100% of its
               face value.

               Tarjetas Cuyanas S.A.

               In January 2005 the Company submitted to the CNV an update of the
               draft Offering Circular for the Global Short and Medium-term
               Negotiable Obligation Issue Program for a face value of up to US$
               35,000 thousand, requesting authorization for the issue of a new
               Series of negotiable obligations. At the date of these financial
               statements, the control authority had not yet approved that
               issue.

NOTE 9:        CONTRIBUTION TO THE 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 and complementary rules, 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 established the maximum limit of this insurance system
               to demand

                                       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)
                             (In thousands of pesos)

NOTE 9:        (Continued)

               deposits and time deposits of up to $ 30 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.

               Deposits whose ownership has been acquired through endorsement
               and placements which offer incentives in addition to the interest
               rate are also excluded from this System.

               The System has been implemented through the creation of the
               Deposit Insurance Fund (FGD), 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 that
               Fund.

               In December 2001, as established by BCRA Communique "A" 3358 the
               contribution was taken to 0.03% of the items included in the
               calculation basis.

               In September 2004, BCRA Communique "A" 4206 reduced that
               contribution to 0.02%.

               Effective January 1, 2005, this contribution was reduced to
               0.015%, pursuant to BCRA Communique "A" 4271.

               As of December 31, 2004 the normal contribution to the Deposit
               Insurance Fund amounted to $ 290,710, of which $ 15,176
               correspond to the current year.

NOTE 10:       RESTRICTIONS IMPOSED ON THE DISTRIBUTION OF PROFITS

               Argentine Central Bank rules establish that 20% of the profits
               shown in the Income Statement at period end, plus (less) prior
               year adjustments must be allocated to the legal reserve.

                                       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)
                             (In thousands of pesos)

NOTE 10:       (Continued)

               This proportion is applicable regardless of the ratio of the
               legal reserve fund to the capital stock.

               In addition to the restrictions set forth by the foreign debt
               refinancing agreements of Banco de Galicia y Buenos Aires S.A.,
               as detailed in Note 1 to the consolidated financial statements -
               "Situation of Banco de Galicia y Buenos Aires S.A. and its
               subsidiaries", and 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.

               On June 2, 2004 Argentine Central Bank Communique "A" 4152 left
               without effect the suspension of the distribution of profits
               established by Communique "A" 3574; notwithstanding this, banks
               distributing profits are to be previously authorized by that
               Entity.

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

               Furthermore, as established by Section 70 of the Corporations
               Law, stock companies are to set up a reserve of not less than 5%
               of the realized and liquid profits shown in the income statement
               for the year, until 20% of the corporate stock is reached. When
               this reserve is lower than that percentage for any reason, no
               profits may be distributed until this minimum reserve requirement
               has been met.

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

                                       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)
                             (In thousands of pesos)

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

               -Resolution No. 368/01

               Banco de Galicia y Buenos Aires S.A. equity as of December 31,
               2004 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",
               y "FIMA NEGOTIABLE OBLIGATIONS" Banco de Galicia y Buenos Aires
               S.A. has a total of 227,006,406 units under custody for a market
               value of $ 245.585 as of December 31, 2004, which is included in
               the "Depositors of Securities in Custody" account.

               As of December 31, 2003, the securities held in custody by Banco
               de Galicia y Buenos Aires S.A. totaled 203,245,661 units and
               their market value amounted to $ 191,401.

NOTE 12:       PRIOR YEAR ADJUSTMENTS

               On January 30, 2004, the BCRA released Communique "A" 4084
               establishing a change of criterion for the valuation of assets
               delivered to the public sector. The effect of this change was
               recorded by Banco de Galicia y Buenos Aires S.A. as a counterpart
               under the Prior year adjustments caption, as established by BCRA
               Communique "A" 4095.

               The most significant changes include the treatment applicable to
               assets delivered as collateral for advances granted by the BCRA
               for the subscription of the bonds envisaged in Sections 10, 11
               and 12 of Decree No. 905/02. At the option of Banco de Galicia y
               Buenos Aires S.A., these assets could be excluded from the
               treatment foreseen in Communique "A" 3911 described in Note
               3.b.4. In this case, those assets were to be recorded at the
               value admitted for 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

                                       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)
                             (In thousands of pesos)

NOTE 12:       (Continued)

               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.

               Banco de Galicia y Buenos Aires S.A. had opted to value the
               assets offered as collateral detailed below at the value admitted
               for purposes of providing the collateral. As of December 31,
               2004, that Bank adjusted the carrying values as a counterpart in
               Prior year adjustment for $ 30,893.

               1) 502,876 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 Hedge bond and the exchange of deposits with
               the financial system, as established by Decree No. 1836/2002;

               2) 153,331 Series 75 (VBY4) Argentine Republic External Bills
               (face value) at Badlar rate, and 127,141 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 Hedge bond. The reason for the adoption of
               this valuation criterion is to get authorization to use these
               securities, under the terms of Sections 15 and 29 of Decree
               905/02

               Given that the Argentine Government has established that External
               Bills are eligible for the external sovereign debt swap, and that
               Banco de Galicia y Buenos Aires S.A. has decided to accept that
               offer, as of December 31, 2004, those Bills have been valued as
               indicated in Note 3.b.a., point. III b).

               At the end of the previous year, in accordance with regulations
               in force at that date Banco de Galicia y Buenos Aires S.A. had
               capitalized the difference arising from application of the CVS
               index instead of the CER to certain financing for $ 102,705.

               As of December 31, 2004, in view of the lack of resolution on
               this issue, such asset was written off by Banco de Galicia y
               Buenos Aires S.A., charging $ 76,791 to prior year results,
               according to the criterion established by BCRA Communique "A"
               4202, and using allowances previously set up to cover the
               difference.

                                       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)
                             (In thousands of pesos)

NOTE 12:       (Continued.)

               The figures for the previous year have been modified by Banco de
               Galicia y Buenos Aires S.A. and Grupo Financiero Galicia for
               comparative purposes.

NOTE 13:       CONTRIBUTIONS TO THE BANK EMPLOYEES' SOCIAL SERVICES INSTITUTE
               (the "ISSB")

               Effective July 1, 1996, Decree No. 263/96 of the National
               Executive Power reduced to 1% and effective July 1, 1997 Decree
               No. 915/96 eliminated the 2% contribution on interest and fees
               that banks previously had to make to the ISSB, pursuant to
               Section 17 of Law No. 19322.

               Banco de Galicia y Buenos Aires S.A. has determined the
               aforementioned contributions in accordance with these
               regulations.

               The bank employee union (the "Banking Association") brought legal
               action calling for a stay against the National Executive Branch -
               Ministry of Public Works and Services, with a view to having
               Section 1 of Decree 263/96 declared null and unconstitutional,
               and obtained 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. 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.

               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

                                       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)
                             (In thousands of pesos)

NOTE 13:       (Continued.)

               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, Banco de Galicia y Buenos Aires S.A. 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 Banco de
               Galicia y Buenos Aires S.A. would be exposed if an unfavorable
               resolution were to be issued.

NOTE 14:       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 fifteen thousand pesos ($ 15) and a
               maximum of two million pesos ($ 2,000) for each institution,
               based on the number of non-compliance by each one".

               In line with BCRA 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 those 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

                                       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)
                             (In thousands of pesos)

NOTE 14:       (Continued)

               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.
               The judgment entered in the action requesting protection of
               constitutional rights has been appealed by Banco de Galicia y
               Buenos Aires S.A. and on March 25, 2004 the Court of Appeals
               confirmed the lower court judgment. Consequently, the BCRA might
               again require Banco de Galicia y Buenos Aires S.A. to pay the
               difference between the sum paid following the guidelines of
               Decree No. 347/99 and the sum it should have paid as a result of
               the application of Section 62 of Law No. 24452, amended by Law
               No. 24760, as such claim was the subject matter of the action
               brought by that Bank.

               Notwithstanding this, the BCRA might require Banco de Galicia y
               Buenos Aires S.A. to pay that difference if the judgment rendered
               in the action brought by the Ombudsman were to be confirmed or
               become firm. Banco de Galicia y Buenos Aires S.A. considers that
               this would not substantially affect its equity.

NOTE 15:       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
               face value of up to US$ 1,000,000 thousand. 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 thousand granted to Argentine Provinces
               collateralized by the federal tax sharing corresponding to those
               Provinces, and reserve investments for US$ 7,761 thousand, 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 thousand,
               Class B Debt

                                       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)
                             (In thousands of pesos)

NOTE 15:       (Continued)

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

               As of December 31, 2004 and December 31, 2003, Banco de Galicia y
               Buenos Aires S.A. held debt securities and certificates of
               participation in its portfolio for $ 665,101 and $ 646,143,
               respectively.

NOTE 16:       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 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 thousand (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 is First Trust of New York, National
               Association, through its permanent representation in Argentina.

               The financial trusts Galtrust II and V - Mortgage bills were set
               up under the above-mentioned program, and Certificates of
               Participation and Debt Securities were issued.

               As of December 31, 2004, Banco de Galicia y Buenos Aires S.A. and
               Banco de Galicia Uruguay S.A. held in their portfolio $ 27,710
               and $ 33,878, respectively, while as of December 31, 2003, they
               held $ 22,662 and $ 46,110, respectively.

NOTE 17:       GALICIA 2004 AND GALICIA 2005 TRUSTS

               In November 1999 a "Framework Trust Agreement" was entered into
               by and between Banco de Galicia y Buenos Aires S.A. as trustor
               and First Trust of New York, as trustee, for the implementation
               of an incentive program in favor of certain executives of the
               mentioned Bank, to be determined from time to time by the Board
               of Directors. For such purpose, the "Galicia 2004 Trust" was
               created, and the amount of US$ 4,000 thousand was transferred to
               the trustee, which was used for the purchase of shares and ADSs
               of Grupo Financiero Galicia S.A. On June 15, 2003

                                       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)
                             (In thousands of pesos)

NOTE 17:        (Continued)

               Galicia 2004 Trust was early terminated, the shares and ADSs
               having been delivered to the beneficiaries designated.

               The ADS balance of 157,669.40 of the Galicia 2004 Trust that was
               not awarded to the beneficiaries formed the Galicia 2005 Trust.

NOTE 18:       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 the previous year, in order to disclose
               the changes in those assets and liabilities during the current
               year is as follows:

<TABLE>
<CAPTION>
                                                                  12.31.04         12.31.03
                                                                ------------------------------
<S>                                                               <C>             <C>
ASSETS
LOANS                                                             8.438.177       7.506.485
                                                                ------------------------------
-To the non-financial public sector                               4.558.873       4.323.279
-To the financial sector                                            150.530         194.692
-To the non-financial private sector and residents abroad         4.361.393       4.165.829
  -Overdrafts                                                       199.668         218.902
  -Notes                                                          1.099.243       1.280.062
  -Mortgage loans                                                   623.944         719.593
  -Pledge loans                                                      92.889          54.644
  -Consumer loans                                                    58.161          55.175
  -Credit card loans                                              1.105.386         818.837
  -Others                                                           772.996         498.616
  -Accrued interest and quotation differences receivable            414.400         523.080
  -Documented interest                                              (5.286)         (2.485)
  -Unallocated collections                                              (8)           (595)
-Allowances                                                       (632.619)     (1.177.315)
                                                                ------------------------------
OTHER RECEIVABLES RESULTING FROM FINANCIAL BROKERAGE              6.697.688       6.094.704
                                                                ------------------------------
-Argentine Central Bank                                              78.463          69.846
-Amounts receivable for spot and forward sales to be settled         56.209               -
- Securities to be received under spot and forward purchases
to be settled                                                       313.462             138
-Unlisted negotiable obligations                                     20.384         103.792
-Others not included in the debtor classification regulations     5.973.345       5.736.462
-Others included in the debtor classification regulations           188.807         205.693
-Accrued interest receivable not included in the debtor
classification regulations                                           92.302          79.158
- Accrued interest receivable included in the debtor
classification regulations                                            2.427           1.623
-Allowances                                                        (27.711)       (102.008)
</TABLE>

                                       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)
                             (In thousands of pesos)

NOTE 18:       (Continued)

<TABLE>
<CAPTION>
                                                                12.31.04          12.31.03
                                                             -----------------------------------
<S>                                                                 <C>                <C>
LIABILITIES
 DEPOSITS                                                         6.756.913         5.583.991
                                                             -----------------------------------
 -Non-financial public sector                                       131.932            12.412
 -Financial sector                                                   17.157            19.460
 -Non-financial private sector and residents abroad               6.607.824         5.552.119
   -Current accounts                                              1.192.474           902.438
   -Savings accounts                                              1.638.694         1.080.153
   -Time deposits                                                 3.415.788         2.838.480
   -Investment accounts                                                 383               184
   -Others                                                          280.220           533.626
   -Accrued interest and quotation differences payable               80.265           197.238
                                                             -----------------------------------
 OTHER LIABILITIES RESULTING FROM FINANCIAL BROKERAGE            14.056.567        15.099.421
                                                             -----------------------------------
 -Argentine Central Bank                                          8.059.550         8.132.902
   -Liquidity assistance loans                                    5.321.697         5.579.978
   -Others                                                        2.737.853         2.552.924
 -Banks and international entities                                  772.393         2.735.480
 -Unsubordinated negotiable obligations                           3.348.652         2.392.909
 -Amounts payable for spot and forward purchases to be
 settled                                                            229.537                 -
 -Securities to be delivered under spot and forward sales
 to be settled                                                       56.155            99.604
 -Loans from domestic financial institutions                        191.195           131.763
 -Others                                                            909.926         1.003.865
 -Accrued interest and quotation differences payable                489.159           602.898
                                                             -----------------------------------
 SUBORDINATED NEGOTIABLE OBLIGATIONS                                380.077                 -
</TABLE>

NOTE 19:       SITUATION OF CERTAIN COMPANIES CONSOLIDATED WITH BANCO DE GALICIA
               Y BUENOS AIRES S.A.

               Corporate merger between Tarjeta Comfiar S.A. and Tarjeta Naranja
               S.A.

               As from January 1, 2004 Tarjeta Naranja S.A. absorbed Tarjeta
               Comfiar S.A., which was dissolved without being liquidated to
               continue with the business activities carried out by it until
               that time under the name of Tarjeta Naranja S.A., assuming all
               contingent rights and obligations of the merged company.

               Corporate merger between Tarjeta del Mar S.A. and Tarjeta Naranja
               S.A.

               At those Board meetings, the carrying out of all necessary steps
               to formalize the merger between Tarjeta Naranja S.A. (merging
               company) and Tarjetas del Mar S.A. (merged company) was
               authorized, within the framework of a corporate reorganization
               under the terms of Section No. 77 of the Income Tax Law and
               Section No. 109 of its regulatory decree. The reasons for this
               process are the advantages that can be gained as a result of the
               joint actions and the unification of both companies' business

                                       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)
                             (In thousands of pesos)

NOTE 19:       (Continued)

               activities, which would improve the services provided by them and
               reduce operating costs.

               Deficit in equity and capital reduction at subsidiaries.

               As of December 31, 2004, Tarjetas del Mar S.A. and Galicia
               Capital Markets S.A. reported deficits in their equity.
               Considering that the accumulated losses reported by those
               companies and Agro Galicia S.A. are in excess of 50% of their
               corporate capital and reserves, Sections 94, subsect. 5) and 206
               of the Corporations Law apply to them, the shareholders having to
               deal with this situation and resolve on the restoration of those
               companies' equity ratio at the next meeting.

NOTE 20:       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 $
               312,774 were transferred, receiving in exchange $ 234,580 in cash
               and certificates of participation for $ 78,194.

               The trustee is ABN AMRO Bank Argentine Branch, with various
               domestic financial institutions acting as subscribers.

               Under the terms of the contract, in the event of default, Banco
               de Galicia y Buenos Aires S.A. undertakes to repurchase and/or
               replace the loans with others of similar characteristics.

               In December 2004, Banco de Galicia y Buenos Aires S.A. acquired
               Senior Certificates held by financial institutions, as mentioned
               above, and now it is the holder of all the certificates issued by
               the Trust.

               On January 10, 2005, the parties resolved to terminate the trust
               in advance and redeem the outstanding securities, and all the
               trust assets were transferred to Banco de Galicia y Buenos Aires
               S.A. As a result, mortgage loans for $172,214 and $1,508 in cash
               have been added.

               As of December 31, 2004, the Certificate of Participation and
               Debt Securities amount to $170,495, and as of December 31, 2003
               the Certificate of Participation amounted to $118,396.

               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 $ 108,000

                                       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 Consolidated Financial Statements (Continued)
                            (In thousands of pesos)

NOTE 20:          (Continued)
                  were transferred and $ 81,000 in cash and certificates of
                  participation for $ 27,000 were received in exchange.

                  In certain cases, Banco de Galicia y Buenos Aires S.A. is
                  required to repurchase the certificates of participation.

                  As of December 31, 2004, those certificates of participation
                  amounted to $ 44,294 and as of December 31, 2003, to $40,494.

NOTE 21:          SETTING UP OF FINANCIAL TRUST
                  - Tarjetas Cuyanas S.A.
                  On March 24, 2004, the Board of Directors of Tarjetas Cuyanas
                  S.A. approved the creation of one or more financial trusts for
                  the securitization of receivables arising from the use of
                  credit cards issued by the Company, for which purpose
                  fiduciary securities would be issued to place on the market.

                  As of December 31, 2004, authorization was obtained from the
                  CNV for the issuance of certificates of participation in the
                  "Tarjeta Nevada I and II" Financial Trusts for a face value of
                  $ 15,000 and $16,000, respectively.

                  As established in that Trust's offering circular supplement,
                  the Issuing Trustee is Banco Patagonia Sudameris S.A., the
                  Trustor, Manager and Trust Beneficiary, Tarjetas Cuyanas S.A.,
                  and the Underwriters, Banco Patagonia Sudameris S.A. and Banco
                  Regional de Cuyo S.A.

                  The result of the placement was the following:

                  -"Tarjeta Nevada I Financial Trust": Class "A" Certificates of
                  Participation for $ 12,000; Class B Certificates of
                  Participation for $ 1,500 which were fully placed and Class
                  "C" Certificates of Participation for $ 1,500 held by Tarjetas
                  Cuyanas S.A. At the end of this year, the Class "A"
                  Certificates of Participation had been fully redeemed and the
                  balance of Classes "B" and "C" was $ 2,802.

                  -"Tarjeta Nevada II Financial Trust": Class "A" Certificates
                  of Participation for $ 12.000, which were fully placed; Class
                  "B" Certificates of Participation for $ 2,400, partially
                  placed in the amount of $ 1,850, the remainder for $ 550 being
                  held by Tarjetas Cuyanas S.A. and Class "C" Certificates of
                  Participation for $ 1,600, held by Tarjetas Cuyanas S.A. -
                  Tarjeta Naranja S.A.

                                       58
<PAGE>

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

NOTE 21:          (Continued)
-------           Tarjeta Naranja I Financial Trust:
                  ---------------------------------
                  In accordance with Law 24441, on August 2, 2004 a financial
                  trust agreement was entered into by and between Tarjeta
                  Naranja S.A., as trustor and Banco Patagonia Sudameris S.A.,
                  as trustee, whereby the "Tarjeta Naranja I Financial Trust"
                  was created. This trust is composed of trust assets consisting
                  of receivables for the use of credit cards issued by Tarjeta
                  Naranja S.A. for a trust amount of $ 40,000.

                  The Trustor fully adhered to the Framework Agreement
                  formulated by the Trustee under the Program, which had been
                  authorized by CNV Resolution No. 13573 dated October 6, 2000
                  and contained in the offering circular published in the
                  Bulletin of the Buenos Aires Stock Exchange.

                  The Trust shall expire on the servicing date of all Trust
                  Securities, which shall be redeemed exclusively with the trust
                  assets, pursuant to issue conditions.

                  The Trust issued the following classes of trust securities for
                  a face value of $ 1: (a) Class A Participation Certificates
                  for a face value equivalent to 80% of the total face value,
                  that is, $ 32,000, accruing interest at an annual nominal rate
                  of 8%; (b) partially subordinated Class B Participation
                  Certificates for a face value equivalent to 10% of the total
                  face value, that is, $ 4,000, accruing interest at an annual
                  nominal rate of 11%; and (c) Class C Participation
                  Certificates, for a face value equivalent to 10% of the total
                  face value, that is, $ 4,000, and accruing the Trust's
                  remaining interest. Each Class of Trust Securities will fall
                  due after 90 days have elapsed from the normal due date of the
                  longest term receivable.

                  A public offering was made to investors of the Classes A and B
                  Participation Certificates, which were fully subscribed on
                  August 26, 2004, while the Class C Participation Certificates
                  were acquired by Tarjeta Naranja S.A.

                  Tarjeta Naranja II Financial Trust:
                  ----------------------------------
                  In accordance with Law 24441, on October 22, 2004 a financial
                  trust agreement was entered into by and between Tarjeta
                  Naranja S.A., as trustor and Banco Patagonia Sudameris S.A.,
                  as trustee, whereby the "Tarjeta Naranja II Financial Trust"
                  was created. This trust is composed of trust assets consisting
                  of receivables for the use of credit card coupons issued by
                  Tarjeta Naranja S.A. for a total trust amount of $ 50,000. At
                  October 1 (transfer date), the face value of the receivables
                  transferred to pay up the trust amount totaled $ 51,711.

                                       59
<PAGE>

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

NOTE 21:          (Continued)
                  The Trustor fully adhered to the Framework Agreement
                  formulated by the Trustee under the Program, which had been
                  authorized by CNV Resolution No. 13573 dated October 6, 2000.

                  The Trust shall expire on the servicing date of all Trust
                  Securities, which shall be redeemed exclusively with the trust
                  assets, pursuant to issue conditions.

                  The Trust issued the following classes of trust debt
                  securities for a face value of $ 1: (a) Class A Trust Debt
                  Securities for a face value equivalent to 80% of the total
                  face value, that is, $ 40,000, accruing interest at a
                  reference rate defined as the CER monthly variation, plus a 3%
                  annual nominal rate, between 8% and 15% annual nominal rates
                  for a term of 15 months; (b) partially subordinated Class B
                  Trust Debt Securities for a face value equivalent to 10% of
                  the total face value, that is, $ 5,000, accruing interest at a
                  reference rate defined as the CER monthly variation, plus a 5%
                  annual nominal rate, between 11% and 20% annual nominal rates
                  for a term of 17 months; and (c) Class C Trust Debt
                  Securities, for a face value equivalent to 10% of the total
                  face value, that is, $ 5,000, and accruing the Trust's
                  remaining interest.

                  A public offering was made to investors of the Classes A and B
                  Trust Debt Securities, which were fully subscribed on November
                  1, 2004, while the Participation Certificates were acquired by
                  Tarjeta Naranja S.A.

                  Galicia Consumer Loan Financial Trust
                  At the meeting held on October 21, 2004, the Board of
                  Directors of Banco de Galicia y Buenos Aires S.A. authorized
                  the creation of "Galicia Consumer Loan Financial Trust". This
                  trust has been set up under the Universal Loan Securitization
                  Program for the Issuance of Debt Securities and/or
                  Certificates of Participation in Financial Trusts" approved by
                  the CNV through Resolution No. 13334 dated April 6, 2000,
                  Deutsche Bank S.A. acting as financial trustee.

                  Banco de Galicia y Buenos Aires S.A. has transferred to the
                  Trust its consumer loan portfolio for a total amount of up to
                  $41,529, Class A financial debt securities for a face value of
                  $33,223, Class B financial debt securities for a face value of
                  $ 5,191 and Certificates of Participation for a face value of
                  $3,115 having been issued.

                  On January 11, 2005, the term for placing those securities
                  expired. Banco de Galicia y Buenos Aires S.A. received $34,611
                  in cash, Class B financial debt securities for a face value of
                  $2,927 and Certificates of Participation for a face value of
                  $3,115.

                                       60
<PAGE>

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

NOTE 22:          SEGMENT REPORTING
                  -----------------
                  Below is a detail of the accounting information as of December
                  31, 2004, classified according to the related business
                  segment:
<TABLE>
<CAPTION>
                  Primary segment: Business Segment.
                                                      Financial              Services            Total
                                                      brokerage
                  <S>                                        <C>                  <C>             <C>
                  Income                                       1.391.585           529.052          1.920.637
                  Expenses                                   (1.167.444)          (92.759)        (1.260.203)
                                                      --------------------------------------------------------
                  Result                                         224.141           436.293            660.434
                                                      ========================================================

                  ----------------------------------------------------------------------------------------------------
                  Secondary segment: Geographical area segment.
                  ----------------------------------------------------------------------------------------------------
                                                        City of Buenos    Rest of country        Total
                                                      Aires and Greater
                                                         Buenos Aires
                  Financial brokerage
                  Income                                       1.249.972           141.613          1.391.585
                  Expenses                                   (1.048.641)         (118.803)        (1.167.444)
                                                      --------------------------------------------------------
                  Result                                         201.331            22.810            224.141
                                                      ========================================================


                  Services
                  Income                                         475.214            53.838            529.052
                  Expenses                                      (83.320)           (9.439)           (92.759)
                                                      --------------------------------------------------------
                  Result                                         391.894            44.399            436.293
                                                      ========================================================
</TABLE>
                  The accounting measurement of assets and liabilities allocated
                  to the above-mentioned segments is as follows:

                                                                         Total
                  Assets
                  Government and corporate securities                  5.534.097
                  Loans                                                8.438.177
                  Other receivables resulting from financial
                    brokerage                                          6.697.688
                  Assets under financial leases                          100.950

                  Liabilities
                  Deposits                                             6.756.913
                  Other liabilities resulting from
                    financial brokerage                               14.056.567

                                       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"
 Statement of Financial Condition as of December 31, 2004 and December 31, 2003
                            (In thousands of pesos)
                                    (Note 2)


                                                        12.31.04        12.31.03
                                                     ---------------------------

ASSETS
CURRENT ASSETS
Cash and cash equivalents (Notes 3 and 11 and
Schedule G)                                                    540        1.164
Investments (Notes 9 and 11 and Schedules C and G)          37.442       24.499

Other receivables (Notes 4, 9 and 11 and Schedule G)            89        5.745
                                                     ---------------------------
Total Current Assets                                        38.071       31.408
                                                     ---------------------------

NON-CURRENT ASSETS
Other receivables (Notes 4, 9, 11 and Schedule G)            4.780        4.438
Investments    (Notes    9,    10    and    11   and
Schedules  C,  E and G)                                  1.529.348    1.418.245


Fixed assets  (Schedule A)                                   3.283        3.431


Intangible assets (Schedules B and E)                        3.745        6.947
                                                     ---------------------------
Total Non-current Assets                                 1.541.156    1.433.061
                                                     ---------------------------
Total Assets                                             1.579.227    1.464.469
================================================================================


                                                        12.31.04        12.31.03
                                                     ---------------------------

LIABILITIES
CURRENT LIABILITIES
Salaries and social security  liabilities  (Notes
5 and 9)                                                       159           74
Tax liabilities (Notes 6 and 9)                             32.027          298
Other   liabilities  (Notes 7, 9 and 11 and
Schedule  G)                                                 1.117        1.354
                                                  ------------------------------
Total Current Liabilities                                   33.303        1.726
                                                  ------------------------------

NON-CURRENT LIABILITIES
Tax liabilities (Notes 6, 9 and 13)                         26.383       43.354

Other liabilities (Notes 7 and 9)                                3            6
                                                  ------------------------------
Total Non-current Liabilities                               26.386       43.360
                                                  ------------------------------
Total Liabilities                                           59.689       45.086
                                                  ------------------------------
SHAREHOLDERS' EQUITY (per related statement)             1.519.538    1.419.383
                                                  ------------------------------
Total Liabilities and Shareholders' Equity               1.579.227    1.464.469
================================================================================

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

                                       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"
                                Income Statement
                              For the fiscal year
                            ended December 31, 2004.
              In comparative format with the previous fiscal year
                            (In thousands of pesos)
                                    (Note 2)

================================================================================
                                                          12.31.04      12.31.03
                                                      --------------------------

Administrative expenses (Note 11 and Schedule H)         (17.532)        (8.779)

Loss on investments in related entities                  (94.202)      (200.108)

Financial and holding gains / (losses) (Note 11)           13.229       (19.241)

- Generated by assets                                      13.224       (19.826)

Interest

On time deposits (*)                                          156            929

On special current account deposits                             1              -

On negotiable obligations (*)                               3.347          1.400

Others                                                        144            126

CER (*)

On time deposits                                                9              -

Result of valuation of negotiable obligations               1.593              -

Gain on sale of negotiable obligations                      1.808              -

Result of Indol contracts                                       -           (43)

Result of fiscal credit certificates                            -             89

Result of purchase and sale of government securities        (303)        (1.456)

Result of purchase and sale of corporate securities          (80)              -

Mutual fund yield                                               6              9

Exchange gain / (loss)                                      6.543       (19.264)

Loss on exposure to inflation                                   -        (1.616)

- Generated by liabilities                                      5            585

Exchange gain                                                   5             86

Gain on exposure to inflation                                   -            499

Other income and expenses                                   1.607          5.908
                                                    ----------------------------
Pre-tax loss                                             (96.898)      (222.220)
                                                    ----------------------------
Income tax (Note 13)                                     (12.973)              -
                                                    ----------------------------
Loss for the year                                       (109.871)      (222.220)
================================================================================
(*) Balances net of eliminations corresponding to intercompany transactions,
pursuant to Section 33 of Law 19550. See Note 11.
The accompanying Notes 1 to 17 and Schedules A, B, C, E, G and H are an integral
part of these financial statements.

                                       63
<PAGE>
<TABLE>
<CAPTION>
                         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
                            ended December 31, 2004.
              In comparative format with the previous fiscal year
                            (In thousands of pesos)
                                    (Note 2)

======================================================================================
                   Shareholders' contributions (Note 8)
       Item                Capital     Capital       Non-capitalized          Total
                            stock      adjustment     contributions
                                                   -----------------------
                                                   Issuance  Irrevocable
                                                   premiums  contributions
--------------------------------------------------------------------------------------
<S>                         <C>         <C>         <C>               <C>   <C>
Balances at beginning of
year                        1,092,407   1,314,673   174,626             -   2,581,706
Prior year adjustments
(Note 17)                           -           -         -             -           -
                           -----------------------------------------------------------
Modified and adjusted       1,092,407   1,314,673   174,626             -   2,581,706
balances at beginning of
year.
Capital increase (Note
16)                           149,000           -    61,026             -     210,026
Loss for the year                   -           -         -             -           -
--------------------------------------------------------------------------------------

Total                       1,241,407   1,314,673   235,652             -   2,791,732
======================================================================================
</TABLE>

<TABLE>
<CAPTION>
==================================================================================================================
                                           Retained earnings (Note 12)
                                     Profit reserves           Total   Unappropriated     Total         Total
          Item                                                            retained     shareholders' shareholders'
                                                                          earnings      equity as     equity as
                              Legal    Discretionary   Other                               of            of
                             reserve      reserve     reserves                           12.31.04      12.31.03
------------------------------------------------------------------------------------------------------------------
<S>                            <C>              <C>       <C>  <C>        <C>             <C>           <C>
Balances at beginning of
year                           29,493            -          -  29,493     (1,148,862)     1,462,337     1,638,637
Prior year adjustments
(Note 17)                           -            -          -       -        (42,954)      (42,954)         2,966
                            --------------------------------------------------------------------------------------
Modified and adjusted          29,493            -          -  29,493     (1,191,816)     1,419,383     1,641,603
balances at beginning of
year.
Capital increase (Note
16)                                 -            -          -       -               -       210,026             -
Loss for the year                   -            -          -       -       (109,871)     (109,871)     (222,220)
------------------------------------------------------------------------------------------------------------------

Total                          29,493            -          -  29,493     (1,301,687)     1,519,538     1,419,383
==================================================================================================================
</TABLE>

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

                                       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"
                            Statement of Cash Flows
                               For the fiscal year
                            ended December 31, 2004.
              In comparative format with the previous fiscal year
                            (In thousands of pesos)
                                    (Note 2)
<TABLE>
<CAPTION>
=========================================================================================================
                                                                         12.31.04          12.31.03
---------------------------------------------------------------------------------------------------------
<S>                                                                            <C>               <C>
CHANGES IN CASH

Cash at the beginning of the year                                               1.164             1.293
Cash at the end of the period                                                     540             1.164
                                                                    --------------------------------------
Decrease in cash, net                                                           (624)             (129)
                                                                    ======================================
REASONS FOR CHANGES IN CASH
Operating activities
Collections for sales of goods and services                                        32               354
Payments to suppliers of goods and services                                   (3.884)           (4.345)
Payments to the staff and social security contributions                         (975)             (812)
Payment of income tax                                                               -           (1.321)
Payments of other taxes                                                       (4.488)           (2.716)
Other operating payments                                                            -                 -
                                                                    -------------------------------------
Net cash flow used in operating activities                                    (9.315)           (8.840)
                                                                    -------------------------------------
Investing activities
Collections for fixed assets sold                                                   -                32
Payments for purchases of  fixed assets                                          (65)               (7)
Irrevocable contributions in Net Investment S.A.                                (683)           (3.597)
Dividends collected                                                               438                 -
Interest collected                                                             10.301             1.972
Financing granted                                                             (2.223)           (5.338)
Collections of investments                                                      1.030            15.649
Payments for purchase of shares in controlled companies                         (107)                 -
                                                                    -------------------------------------
Net cash flow provided by investing activities                                  8.691             8.711
                                                                    -------------------------------------
Decrease in cash, net                                                           (624)             (129)
=========================================================================================================
</TABLE>
The accompanying Notes 1 to 17 and Schedules A, B, C, E, G and H are an integral
part of these financial statements.

                                       65
<PAGE>

                         Grupo Financiero Galicia S.A.
  "Corporation which has not adhered to the Optional System for the Mandatory
                  Acquisition of Shares in a Public Offering"
                 Notes to the Financial Statements (Continued)
                  For the fiscal year ended December 31, 2004
                        presented in comparative format
                            (In thousands of pesos)

NOTE 1:         ARGENTINE ECONOMIC SITUATION AND ITS IMPACT ON GRUPO FINANCIERO
------          GALICIA S.A. AND BANCO DE GALICIA Y BUENOS AIRES S.A.
                ----------------------------------------------------------------
                In 2003 and 2004, the economic crisis that affected Argentina in
                late 2001 was largely overcome. An improvement was recorded by
                the Argentine economy, certain economic indicators having shown
                signs of recovery. Also, interest rates have fallen and the
                exchange market has stabilized. The financial system has
                gradually recovered its liquidity levels, recording an increase
                in deposits and in certain types of borrowing.

                In spite of the change in the economic trends mentioned above, a
                situation characterized by high levels of unemployment and a
                major external public and private debt burden as well as country
                risk indicators far above normal average recorded by developing
                countries still persists. The National Government's ability to
                meet its foreign debt obligations continues to be impaired.

                The Argentine Government has submitted to the consideration of
                creditors an offer to exchange defaulting debt issued prior to
                December 31, 2001 for new bonds called "Par Bonds", "Quasi-Par
                Bonds" and "Discount Bonds". The securities offered contemplate
                different terms and conditions, such as issue currency,
                amortization term, nominal value relief and yield. The
                securities may be exchanged from January 14 to February 25,
                2005.

                A favourable outcome of the restructuring negotiations of the
                public debt being carried out with creditors will be essential
                to reduce uncertainty as to the fiscal outlook over the next few
                years.

                To confront the crisis that started at the end of 2001, the
                Government issued a number of measures to restrict the free
                availability and circulation of cash and the transfer of foreign
                currency abroad.

                On January 6, 2002, the Government enacted Law 25561 (Public
                Emergency and Exchange System Reform Law) that involved profound
                changes to the prevailing economic model and the amendment of
                the Convertibility Law in force since March 1991. On February 3,
                2002, the Government announced new economic measures through
                Decree 214 (Restructuring of the financial system), complemented
                by Decree 410 dated March 1, 2002, Decree 260 (Exchange Regime)
                dated February 8, 2002 and Decree 905/02 dated May 31, 2002,
                substantially modifying some of the measures implemented by the
                Public Emergency and Exchange System Reform 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 the Financial Statements (Continued)
                            (In thousands of pesos)

NOTE 1:
------          (Continued)
                Subsequently, decrees and regulations were issued which
                introduced other amendments, as described below:

                Foreign exchange system
                -----------------------

                On February 8, 2002 Decree 260 (Exchange Regime) was issued,
                establishing as from February 11, 2002 a single free exchange
                market system, through which all transactions involving the
                exchange of currency are to be traded at exchange rates to be
                freely agreed according to the requirements of the Argentine
                Central Bank. Controls and restrictions had been imposed and
                then gradually relaxed.

                Through Communication 48142, the Argentine Central Bank
                published exchange regulations in force as of December 31, 2004.

                Loans and other financing
                -------------------------

                As laid down by Law No. 25561, Decree No. 214/02 and
                complementary rules and amendments, loans granted by the
                Argentine financial system in US dollars or any other foreign
                currency, governed by Argentine legislation, have been converted
                to pesos according to the following guidelines: (i) to the
                non-financial private sector, at the $ 1 = US$ 1 parity or its
                equivalent in any other foreign currency, (ii) to the
                non-financial public sector at the $ 1.40 = US$ 1 parity or its
                equivalent in any other foreign currency and (iii) to the
                financial sector at the $ 1.40 = US$ 1 parity or its equivalent
                in any other foreign currency.

                Those measures contemplated the application of the Reference
                Stabilization Index (CER) to loans of whatever nature converted
                to pesos, to which a maximum interest rate determined by the
                BCRA is applied, except for those to which the salary variation
                index (CVS) was applied from October 1, 2002 to March 31, 2004,
                namely:

                - Mortgage loans secured by family residence originally agreed
                for up to US$ 250,000.

                - Consumer loans originally agreed for up to US$ 12,000.

                - Pledge consumer loans originally agreed for up to US$ 30,000.
                The lower of the contractual interest rate in force as of
                February 3, 2002 or that determined by the BCRA is applied to
                these loans.

                The CVS is an index that measures the daily rate of change
                derived from the monthly change in the Salary Index (IS), while
                the CER is an index that measures the daily rate of change
                derived from the monthly change in the Consumer Price Index
                (CPI).

                Since the beginning of the economic crisis in early 2002, Banco
                de Galicia y Buenos Aires S.A. has been restructuring its loan
                portfolio, this restructuring process being in its final stage.
                Also, that portfolio has been duly covered by an allowance.

                                       67
<PAGE>

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

NOTE 1:         (Continued)
------          Deposits with the financial system
                ----------------------------------

                Through Decree 1570/2001, the National Executive Branch (PEN)
                imposed restrictions on the withdrawals of funds from financial
                institutions. Subsequently, regulations were issued establishing
                a rescheduled maturities scheme involving certain deposits with
                the financial system (known as CEDROS).

                Law No. 25561 and Decree No. 214/02 established that all
                deposits denominated in US dollars or any other currency placed
                in the financial system are to be converted to pesos at the $
                1.40 = US$ 1 parity. These norms also establish that financial
                institutions are to comply with their obligations reimbursing
                pesos. The CER and a minimum interest rate have been applied to
                those deposits.

                On various occasions, the National Executive Branch (PEN)
                established the possibility of savers exercising the option to
                exchange their deposits originally arranged in foreign currency
                for pesos and US dollar-denominated government securities, the
                National Government being responsible for crediting those bonds.
                Rescheduled deposits for which no option has been exercised were
                registered with a "Notarial Record of Rescheduled Deposits" kept
                by Caja de Valores S.A. Those rescheduled deposits are listed
                negotiable securities and may be negotiated on self-regulated
                markets in Argentina.

                As of December 31, 2004, principal amounts on rescheduled
                deposits and CEDROS are $ 107.377.

                Public sector debt
                ------------------
                Decree No. 1387/01 dated November 1, 2001 established the
                possibility of financial institutions exchanging national public
                sector debt instruments and loans under the Promissory Note/Bond
                program for new loans called Secured Loans. Conversion was made
                at face value and at a one-to-one rate in the same currency as
                that of the exchanged public sector obligation.
                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,
                are to be converted at an exchange rate of $ 1.40 per US dollar
                or its equivalent in other foreign currency and adjusted
                applying the CER.

                                       68
<PAGE>

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

NOTE 1:         (Continued)
------          The obligations of the Public Sector converted into pesos as
                explained above accrue interest at rates ranging from 2% to 5%,
                depending on the characteristics of the original debt.

                Decrees Nos. 644/02 and 79/03 established the steps to be taken
                by financial institutions to accept the new terms and conditions
                for receiving principal and/or interest payments on the secured
                loans. If financial institutions were to reject those terms and
                conditions, their situation will revert to the moment prior to
                the exchange.

                On August 27, 2002, National Executive Branch Decree No.
                1579/02, instructed the Fiduciary Fund for the Provincial
                Development to assume the provincial debts instrumented in
                government securities, bonds, treasury bills or loans that are
                voluntarily converted into Secured Bonds.

                Through Resolutions Nos. 539/02 and 611/02 dated October 25 and
                November 12, 2002, respectively, the Ministry of Economy of the
                Nation established the unified calculation method applicable to
                debts encompassed by the conversion regime laid down by Decree
                No. 1579/02, and set a time limit within which financial
                institutions having made offers to convert provincial public
                debt within the framework of Decree No. 1387/01 and
                complementary rules may declare their intention to withdraw
                those offers.

                On November 19, 2002, the Ministry of Economy of the Nation
                issued Resolution No. 624/02, establishing the provincial public
                debt eligible to be exchanged for bonds and secured loans issued
                by the Fiduciary Fund for the Provincial Development. In
                addition, Resolutions Nos. 742/02 and 135/03 communicated the
                acceptance of certain exchange offers made by financial
                institutions.

                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 that affected Argentina, and
                postponed all judicial and out-of court foreclosures, as well as
                all petitions for bankruptcy until December 10, 2003.
                Subsequently, Law 25820 was promulgated, which extended the
                public emergency declaration until December 31, 2004.

                Law 25972 extended this public emergency declaration until
                December 31, 2005.

                                       69
<PAGE>

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

NOTE 1:         (Continued)
                Suspension of the application of Section 94, subsection 5
                and Section 206 of Law 19550 (Commercial Companies Law)
                ----------------------------------------------------------------

                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 capital, has been suspended until that date. Under Decree
                1293/03, these measures 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 in
                relation to the pesification and rescheduling of foreign
                currency deposits, since December 2001, 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.

                As of December 31, 2004, 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 $ 16,778 and US$ 585,544 thousand. 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 disobedience, Banco de Galicia y
                Buenos Aires S.A. paid the amounts of $ 938,412 and US$ 123,013
                thousand in respect of reimbursement of deposits in pesos and
                foreign currency.

                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
                which attempted to suspend the execution of those measures (as
                well as Decree 320/02, Law 25587 and Decree 1316/02, which made
                an exception in those cases of humanitarian aid). Those norms
                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.

                                       70
<PAGE>

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

NOTE 1:         (Continued)
                Furthermore, through Decrees Nos. 494/02 (published in the
                Official Gazette on March 13, 2002), 905/02, 1836/02 and 739/03
                the State established the option for savers to receive National
                Government Bonds in exchange for rescheduled deposits, under the
                terms and in the manner prescribed therein.

                The difference between the amount paid as a result of the
                above-mentioned court orders and the amount resulting from
                converting deposits at $ 1.40 per US dollar, adjusted by
                applying the CER and interest for $ 650,318, as of December 31,
                2004 it has been recognized in Intangible Assets by Banco de
                Galicia y Buenos Aires S.A., net of related amortization for $
                451,428, as called for by Argentine Central Bank Communique "A"
                3916. As of December 31, 2003, Banco de Galicia y Buenos Aires
                S.A. had recognized $ 564,900, net of related amortization for
                $487,020.

                Banco de Galicia y Buenos Aires S.A. has repeatedly 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 "A" 3916,
                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, with a
                copy to the Ministry of Economy of the Nation and the BCRA,
                compensation for damage suffered by Banco de Galicia y Buenos
                Aires S.A. 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 Banco de Galicia y Buenos Aires
                S.A. to reimburse deposits at a higher exchange rate 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 issue of new final and conclusive
                court decisions that permit Banco de Galicia y Buenos Aires S.A.
                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.

                                       71
<PAGE>

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

NOTE 1:         (Continued)
------          On July 13, 2004, the Argentine Supreme Court of Justice
                ruled on the case entitled "Cabrera Geronimo Rafael et al v.
                National Executive Branch, on legal action requesting protection
                of constitutional guarantees", and rejecting payment of the
                difference between the amount of a dollar-denominated deposit
                and the amount resulting from converting to pesos the amount of
                that deposit at the $ 1.40=US$ 1 exchange rate plus CER, on the
                grounds that the saver has voluntarily collected that amount in
                pesos prior to the filing of the legal action, without making
                any reservation. It is expected that this ruling will prevent
                the so-called "second generation legal actions" from being
                filed, the facts invoked therein being similar to those resolved
                by the Court.

                On October 26, 2004, the Argentine Supreme Court of Justice
                ruled on the case entitled "Bustos, Alberto et al v. National
                State, on legal action requesting protection of constitutional
                guarantees", admitting the declaration of national emergency
                established by Law 25561 and the constitutionality of Section 2
                of Decree 214/02, and overruling the decision that ordered the
                repayment of a US dollar-denominated deposit to a group of
                savers. Notwithstanding the fact that under Argentine law the
                Higher Court rulings are not mandatory for lower courts, this
                ruling is expected to set a precedent in similar cases to be
                heard by those courts.

                Compensation to financial institutions
                --------------------------------------

                Decree No. 214/02 Section 7 provides 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 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.

                                       72
<PAGE>

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

NOTE 1:         (Continued)
                Sections 28 and 29 of that Decree established the restoration of
                financial institutions' equity 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
                Compensatory Bond, for which the issuance of "National
                Government Bonds in pesos, due 2007" (BODEN 2007), was
                established;

                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 Compensatory Bond
                originally issued in pesos into a dollar denominated bond and,
                if necessary, through the subscription of a dollar-denominated
                Hedge bond. To this end, the issuance of dollar-denominated
                "National Government Bonds, Libor 2012" (BODEN 2012) has been
                established.

                Thus, a total original compensation amount of US$ 2,254,027
                thousand in BODEN 2012 (face value) was determined for Banco de
                Galicia y Buenos Aires S.A.

                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. accepted and recognized in
                the previous year an adjustment to the original face value of
                US$ 53,946 thousand, and on April 12, 2004, in a letter
                addressed to the BCRA, answers to the observations made were
                provided and rectification was formally requested by Banco de
                Galicia y Buenos Aires S.A. On that date, Banco de Galicia y
                Buenos Aires S.A. also answered the observations on current
                account and credit card debit balances, challenging the
                observations made by the BCRA and filing the pertinent motion
                for reconsideration. In a letter dated August 23, 2004, the BCRA
                informed Banco de Galicia y Buenos Aires S.A. that as a result
                of the review of the supplementary information submitted and
                certain explanations on regulations, it agreed in certain cases
                with the criterion followed by Banco de Galicia y Buenos Aires
                S.A., while it maintains observations on other criteria.

                                       73
<PAGE>

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

NOTE 1:         (Continued)
------          Banco de Galicia y Buenos Aires S.A. accepted some of these
                observations, and has requested examination of the pertinent
                records to determine their grounds. As a result of the
                adjustments accepted and the changes in regulations introduced
                by Communiques "A" 4122 and "A" 4130, the final amount to be
                compensated to the mentioned Entity, including the hedge bond,
                would be US$ 2,189,781 thousand in BODEN 2012 (face value). This
                figure includes adjustments for US$ 41,167 thousand made by the
                BCRA that were not accepted by the mentioned Bank and issues
                pending resolution by the BCRA for US$ 21,260 thousand, which
                would make an undisputable amount of US$ 2,127,354 thousand.

                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 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, 2004, the amount of $ 4,732,288 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 $ 601,264 for the
                securities received for the compensation, net of the transfers
                made to Banco de Galicia Uruguay S.A., of those used to settle
                debts and in repo transactions. The amount of $ 374,792 used in
                repo transactions has been recognized under "Other receivables
                resulting from financial brokerage - In foreign currency -
                Forward purchases of securities under repo transactions and
                under Miscellaneous Receivables".

                                       74
<PAGE>

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

NOTE 1:         (Continued)
                The advance to be requested from the Argentine Central Bank for
                the subscription of the Hedge bond, including the effect of
                Decree 2167/02, was recorded in "Other liabilities resulting
                from financial brokerage - In pesos - Advances for the
                acquisition of dollar-denominated "National Government Bonds,
                Libor 2012", for $ 1,673,147 which, including the adjustments
                from application of the CER and accrued interest for $
                1,047,596, totals $ 2,720,743.

                The 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.

                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. Such
                request was rejected by that Entity through Resolution No. 162
                dated May 28, 2004, notice of which was given to Banco de
                Galicia y Buenos Aires S.A. on June 3, 2004. In order to learn
                more about the grounds stated in that resolution, that Bank has
                requested authorization to examine the records of the case in
                full, as well as the other records mentioned in that resolution.

                Compensation for application of the CER/CVS
                -------------------------------------------

                Law 25796 established compensation to financial institutions for
                the negative effects on their equity derived from the
                application of the CER to deposits originally denominated in
                foreign currency and converted to pesos, and from the
                application of the CVS to certain loans. This compensation will
                be paid through the delivery of BODEN 2013.

                On May 3, 2004, through Resolution 302/2004 the Ministry of
                Economy and Production approved the calculation method to be
                used by the Finance Secretariat to determine the face value
                amount of the "National Government Bonds in pesos at variable
                rates due 2013" to be delivered to the financial institutions
                adhering to the Compensation Regime created by Law No. 25796.
                The above resolution and BCRA Communique "A" 4136 have regulated
                that compensation regime in such a way that, in the opinion of
                Banco de Galicia y Buenos Aires S.A. Management, it is contrary
                to the provisions of Law No. 25796. For this reason, on May 6,
                2004 Banco de Galicia y Buenos Aires S.A. made a submission to
                the National Executive Branch, the Ministry of Economy and the
                BCRA, maintaining the claim made

                                       75
<PAGE>

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

NOTE 1:         (Continued)
------          on December 30, 2003 and expanding on its justification.
                As the deadline granted by the Argentine Central Bank for
                adhering to the established compensation regime expired on May
                18, 2004, on that date Banco de Galicia y Buenos Aires S.A. made
                a new submission to the Ministry of Economy and the Argentine
                Central Bank reiterating its wish to be compensated for the
                negative effects on its equity derived from application of the
                CVS to certain assets converted into pesos and from the unequal
                application of the CER to certain liabilities, and challenging
                Ministry of Economy Resolution No. 302/2004 under the terms of
                Section 24 of Law 19549.

                At the end of the previous year, Banco de Galicia y Buenos Aires
                S.A. had recorded the estimated recoverable value of that
                compensation as provided for by regulations in force at that
                date.

                As of December 31, 2004, in view of the lack of resolution on
                this issue, the above mentioned asset has been written off (see
                Note 12 to the consolidated financial statements).

                This accounting recognition does not affect Banco de Galicia y
                Buenos Aires S.A.'s right to seek relief for all the losses
                derived from the unequal application of the CER to deposits
                originally denominated in foreign currency subsequently
                converted to pesos, and application of the CVS to certain
                receivables.

                Banco de Galicia y Buenos Aires S.A. maintains its claims, on
                which no resolution has been issued so far.

                Treatment of extraordinary assistance 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 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.

                On February 3, 2004, the BCRA informed Banco de Galicia y Buenos
                Aires S.A. that it had approved the latter's request for
                adherence to the regime for repayment of debt with the BCRA for
                liquidity reasons, as called for by Decree No. 739/03, and
                complemented by Decree No. 1262/03, as well as the amortization
                schedule proposed, the term of which is 92 months, on the basis
                of the minimum amortization period established by applicable
                regulations and of the cash flow provided by the assets eligible
                for collateral for repayment of the debt. On March 2, 2004, the
                first installment was paid.

                                       76
<PAGE>

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

NOTE 1:         (Continued)
------          As of December 31, 2004 the assistance from the Argentine
                Central Bank amounted to $ 5,690,864 (principal plus
                adjustments).

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

                ----------------------------------------------------------------
                To confront the crisis that affected the financial system in
                general and Banco de Galicia y Buenos Aires S.A. in particular
                at the end of 2001 and in early 2002, in May 2002, the "Galicia
                Capitalization and Liquidity Plan" (the "Plan") was implemented.
                Its main objectives were: 1) the immediate restoring of Banco de
                Galicia y Buenos Aires S.A. liquidity levels by providing it
                with sufficient funds for it to be able to reimburse a
                significant portion of its demand deposits without requiring any
                financial assistance from the Central Bank; 2) the orderly
                winding up of its operating units abroad, 3) the streamlining of
                the mentioned Bank's structure to adapt it to the lower levels
                of activity, and 4) an increased capitalization under the
                foreign debt renegotiation process.

                This Plan was approved by the Board of Directors of the BCRA on
                May 3, 2002.

                Banco de Galicia y Buenos Aires S.A. has met all the objectives
                set so far.

                After the initial strengthening of Banco de Galicia y Buenos
                Aires S.A. solvency, its liquidity levels stabilized and were
                rebuilt, no further financial assistance having been required
                from the BCRA. Banco de Galicia y Buenos Aires S.A also made
                significant progress in the adaptation of its corporate
                structure, which was accompanied by a strict expense reduction
                policy.

                As regards the restructuring of its foreign debt, Banco de
                Galicia y Buenos Aires S.A. managed to refinance the liabilities
                of its New York Branch (which was closed down in January 2003)
                and of its subsidiaries Galicia Uruguay and Galicia Cayman,
                consisting mainly of deposits. Furthermore, with the approval of
                the BCRA, the debt carried with Galicia Uruguay for a principal
                amount of US$ 399,500 thousand was restructured.

                In May 2004, an agreement was signed, which enabled refinancing
                the Head Office's and Cayman Branch's debts.

                The basic refinancing offer terms and conditions were approved
                by the Argentine Central Bank through Resolution No. 152/04,
                subject to certain requirements, compliance with which by Banco
                de Galicia y Buenos Aires S.A. is still being analyzed at that
                Entity.

                                       77
<PAGE>

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

NOTE 1:         (Continued)
------          The offer expired on April 27, 2004, a debt for a total
                principal amount of US$ 1,320,900 thousand, representing 98.2%
                of the total restructured principal amount, having been validly
                exchanged.

                Based on the options exercised, the final outcome of the
                restructuring was as follows:

                -The following debt instruments were issued:

                - long-term debt instruments for US$ 648,500 thousand, of which
                US$ 464,800 thousand will be US dollar-denominated Negotiable
                Obligations due 2014, while the remainder will be instrumented
                as loans to Banco de Galicia y Buenos Aires S.A..

                - medium-term debt instruments for US$ 399,800 thousand, of
                which US$ 352,800 thousand will be US dollar-denominated
                Negotiable Obligations due 2010, while the remainder will be
                instrumented as loans to Banco de Galicia y Buenos Aires S.A..

                -subordinated debt instruments for US$ 230,000 thousand, of
                which US$ 218,200 thousand will be US dollar-denominated
                subordinated Negotiable Obligations due 2019, while the
                remainder will be instrumented as loans to Banco de Galicia y
                Buenos Aires S.A.

                In addition, commercial creditors have accepted the terms and
                conditions for the refinancing of their receivables in the
                amount of US$ 24,400 thousand.

                - US$ 36,900 thousand, for debt equivalent to US$ 45,000
                thousand, were transferred to creditors who have opted to
                receive National Government Bonds due 2012 (BODEN 2012), and US$
                13,600 thousand, for debt equivalent to US$ 26,800 thousand,
                were paid to creditors who have participated in the cash offer.
                In addition, under the terms of the agreement, an interest
                payment of US$ 15,500 thousand was made.

                On the settlement date, US$ 42,400 thousand in excess of the
                cash offer were used to redeem in advance "pro rata and pari
                passu" the "US dollar-denominated Negotiable Obligations due
                2014".

                The agreements executed within the framework of Banco de Galicia
                y Buenos Aires S.A.'s foreign debt restructuring established
                that the mentioned Bank may not, directly or indirectly, declare
                or pay dividends or make distributions on shares of common
                stock, except for stock dividends or distributions. This
                restriction shall not apply to dividends paid to Banco de
                Galicia y Buenos Aires S.A. by a consolidated subsidiary.

                Notwithstanding this, those agreements foresee that Banco de
                Galicia y Buenos Aires S.A. may directly or indirectly declare
                or pay dividends, and may allow its subsidiaries to do so, if
                "(i) no Default or Event of Default has taken place and
                continues to take place immediately before and after such
                payment has been made; (ii) the total outstanding Senior Debt
                were to be equal to or lower than fifty percent (50%) of the
                total Senior Debt amount originally issued; and (iii) Banco de
                Galicia y Buenos Aires S.A. were to

                                       78
<PAGE>

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

NOTE 1:         (Continued)
------          reimburse two US dollars (US$ 2) of the Long-term Debt principal
                amount for each US dollar (US$ 1) paid in dividends.

                Restrictions have also been imposed on making certain types of
                investments; using the proceeds from the sale of certain assets
                or from the issue of debt or shares; participating in certain
                operations with subsidiaries, non-financial activities and
                compliance with certain financial ratios.

                Compliance with the commitments undertaken will be subject to
                the prior approval of the Argentine Central Bank, as called for
                by current regulations.

                The conclusion of the above process enabled restructuring the
                foreign financial liability repayment terms, by adapting the
                expected payment expenses and making Banco de Galicia y Buenos
                Aires S.A. future development more foreseeable, as well as
                complying with the increased capitalization envisaged in the
                Plan.

                As a result of this restructuring, Banco de Galicia y Buenos
                Aires S.A. has increased its regulatory capitalization levels by
                approximately US$ 278,700 thousand, because of relief granted in
                respect of principal and interest for US$ 48,700 thousand, which
                were recognized under Financial income - "Others" and Financial
                expenses - "Interest expense for other Liabilities resulting
                from financial brokerage", respectively. Also, subordinated debt
                for US$ 230,000 thousand was issued, which is considered to be
                capital for regulatory purposes. As a result of the
                restructuring of the New York Branch in 2002, Banco de Galicia y
                Buenos Aires S.A. had increased its capitalization levels by US$
                43,000 thousand.

                Claims due to foreign 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 liquidity assistance loans in pesos from the Argentine
                Central Bank. These assistance loans were 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
                Banco de Galicia y Buenos Aires S.A. 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.

                                       79
<PAGE>

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

NOTE 1:         (Continued)
------          At the date markets were reopened, in view of the terms and
                conditions of the norms in force, the US dollar was sold at $
                1.40.

                For this reason, when the Argentine Central Bank allocated US$
                410,000 thousand for Banco de Galicia y Buenos Aires to repay
                the financial assistance provided to it, should have allocated
                US$ 410,000 thousand at $ 1.40, that is, the amount of $574,00.

                This has affected the guarantees of inviolability of private
                property and equality under the law.

                Banco de Galicia y Buenos Aires S.A. considers that the
                difference of $ 164,000 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 present financial statements.

                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 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.

                Within this context, Banco de Galicia y Buenos Aires S.A. and
                Galicia Uruguay agreed to take the necessary steps to provide
                the latter with the necessary sums for it to be able to
                reimburse all its deposits, where applicable, with the prior
                authorization of the Argentine Central Bank.
                Subsequently, the two entities signed a complementary agreement
                clarifying the direct or indirect legal effects arising from the
                statements and covenants of the agreement and the enforceability
                of the rights assumed shall be subject to compliance with the
                normalization of Banco de Galicia y Buenos Aires S.A. economic
                and financial situation and repayment of the assistance

                                       80
<PAGE>

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

NOTE 1:        (Continued)
------          from the Argentine Central Bank, as provided for by the
                whereas clause No. 52 of BCRA Resolution No. 281.

                On December 23, 2002, Galicia Uruguay restructured its deposits
                with a high degree of acceptance on the part of depositors.

                This restructuring consisted 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 or negotiable obligations
                for the remainder.

                As from June 2003 Galicia Uruguay began to receive statements of
                interest from its depositors in relation to various options for
                exchanging their deposits rescheduled in 2002 for different
                proportions of BODEN 2012 and/or new negotiable obligations to
                be issued by that 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 first 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 thousand, which
                included opting to receive Boden 2012 for US$ 137,000 thousand,
                in addition to new negotiable obligations to be issued by
                Galicia Uruguay.

                The second term for the voluntary exchange expired on February
                20, 2004 and Galicia Uruguay received statements of interest
                from its customers for a total amount of approximately US$
                206,000 thousand.

                As of December 31, 2004 the rescheduled obligation balance (time
                deposits and negotiable obligations) amounted to $ 1,239,343. At
                the date of these financial statements, the first two
                instalments for September 2003 and 2004 had been paid.

                Through Resolution No. 338, the BCRA approved the terms and
                conditions for the restructuring of the debt of US$ 399,500
                thousand (principal) that Banco de Galicia y Buenos Aires S.A.
                carried with Galicia Uruguay, as well as the transfer to that
                entity of cash for US$ 72,100 thousand (principal amount) and
                Boden 2012 for US$ 137,000 thousand (face value), in payment of
                the first principal installment and interest thereon due at
                August 15, 2003.

                Payment of the balance of around US$ 221,600 thousand was agreed
                in 8 annual consecutive installments falling due in August of
                each year.

                                       81
<PAGE>

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

NOTE 1:         (Continued)
------          On April 2, 2004, Banco de Galicia y Buenos Aires S.A.
                transferred Galicia Uruguay BODEN 2012 for US$ 170,000 thousand
                (face value), which were firstly allocated to interest payments
                for US$ 4,000 thousand accrued until April 2, 2004, and
                subsequently to the early amortization of principal amount
                installments for US$ 111,500 thousand on the debt held by the
                Cayman Branch with Galicia Uruguay, falling due within longer
                terms.

                In June 2004, the Uruguayan and Argentine regulatory authorities
                established the creation of an instrument to secure obligations
                arising under the reorganization plan. It has been resolved
                that, together with the implementation thereof, the Entity's
                authorities envisaged in its by-laws will be restored.

                Considering that for purposes of the performance of these
                activities it is not necessary to obtain authorization to act as
                a commercial bank, it was resolved to maintain the authorization
                to operate granted by the National Executive Branch and withdraw
                the Central Bank of Uruguay authorization, Galicia Uruguay
                continuing to be intervened until such instrument is
                implemented.

                The adoption of this resolution by the Central Bank of Uruguay
                does not affect the rights of depositors and holders of
                obligations arising under the reorganization plan approved by
                the Uruguayan courts, nor shall it affect successive debt swaps
                undertaken by the Entity.

                At the beginning of 2002, 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 thousand in Banco Galicia Uruguay SA.
                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, Galicia Cayman and the Provisional
                Liquidator formulated a proposal for the restructuring 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 time deposit certificate for 95% of the amount of
                the debt (principal and interest) due as of July 18, 2002. After
                the debt with all Class A creditors has been repaid, the
                remaining assets of

                                       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 the Financial Statements (Continued)
                            (In thousands of pesos)

NOTE 1:         (Continued)
                Banco de Galicia (Cayman) Limited (In Provisional liquidation)
                shall be allocated to the repayment of the US$ 2,900 thousand
                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
                thousand was obtained from, 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.

                The degree of acceptance of the proposed plan exceeded the legal
                majorities and with the approval of the proposed plan by the
                Court in the Cayman Islands and its registration with 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, and the last
                installment will fall due in September 2011. At the date of
                these financial statements, the first two instalments for
                September 2003 and 2004 had been paid.

                As of December 31, 2004, 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)
                Ltd. (In Provisional Liquidation) according to the equity method
                of accounting, while $ 563,190 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 meet the commitments previously undertaken with
                its Uruguayan subsidiary, subject to the necessary
                authorizations.

                The impact generated by these circumstances on Banco de Galicia
                y Buenos Aires S.A. and its subsidiaries' balance sheet and
                financial position as of December 31, 2004 was recognized in
                accordance with BCRA rules and on the basis of estimates made by
                that Bank's Management in those cases not specifically
                regulated. At the date of issue of these financial statements,
                it is not possible to foresee the future development of these
                variables and their possible effect on Banco de Galicia y Buenos
                Aires S.A. and consequently on Grupo Financiero Galicia S.A.
                Therefore, these financial statements should be analyzed
                considering those circumstances.

                                       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 the Financial Statements (Continued)
                            (In thousands of pesos)

NOTE 2:         FINANCIAL STATEMENT PRESENTATION BASIS
                --------------------------------------

                On February 19, 2003, through MD Resolution No. 5/03 the
                Professional Council in Economic Sciences of the Autonomous City
                of Buenos Aires (CPCECABA) approved Technical Pronouncement No.
                21 "Equity value - consolidation of financial statements -
                information to be disclosed on related parties". This Technical
                Pronouncement and its amendments came into force for fiscal
                years commencing as from April 1, 2003. Furthermore, the CNV has
                adopted that Pronouncement establishing its mandatory
                application for fiscal years commencing as from April 1, 2004,
                its application in fiscal years commencing at an earlier date
                being admitted.

                These financial statements have been stated in thousands of
                Argentine pesos 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.

                On March 25, 2003, the National Executive Branch issued Decree
                664 establishing that the financial statements 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
                Argentine GAAP, 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.

                The December 31, 2003 balances disclosed in these financial
                statements for comparative purposes arise from restating the
                financial statement

                                       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 the Financial Statements (Continued)
                            (In thousands of pesos)

NOTE 2:         (Continued)
                figures at that date, following the guidelines indicated in the
                preceding paragraphs.

                Furthermore certain financial statement figures for the year
                ended December 31, 2003 have been reclassified for purposes of
                their comparative presentation with those of the current year.

                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 period/year end currency value, so they do
                     not require any adjustment whatsoever.

                b.   Foreign currency Assets and Liabilities (US dollars)

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

                c.   Investments
                     c.1.  Current

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

                           Government securities have been valued at year end
                           market quotation.

                           Corporate securities have been valued at market
                           quotation, plus interest accrued at year end.

                     c.2.  Non-current

                                       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 the Financial Statements (Continued)
                            (In thousands of pesos)

NOTE 2:      (Continued)
------                     The negotiable obligations issued by Banco Galicia
                           Uruguay have been valued at their face value, plus
                           accrued interest at period/year end, which is
                           recorded as current.

                           Banco de Galicia y Buenos Aires S.A. subordinated
                           Negotiable Obligations due in 2019 have been added to
                           the Company's assets at 73% of their dollar-
                           denominated face value, as resolved by the
                           Extraordinary Meeting of Shareholders held on
                           January 2, 2004.

                           As of December 31, 2004, the Subordinated Negotiable
                           Obligations of Banco de Galicia y Buenos Aires S.A.
                           falling due in 2019 have been valued in accordance
                           with the guidelines of Technical Pronouncement No. 17
                           of the FACPCE, on the basis of: (i) the original
                           measurement of the asset, (ii) the portion accrued on
                           any difference between this measurement and the
                           amount receivable upon maturity, calculated
                           exponentially at the internal rate of return
                           determined at the time of and on the basis of the
                           initial measurement, under the conditions previously
                           agreed, and (iii) net of collections made.

                           The equity investments in Banco de Galicia y Buenos
                           Aires S.A., Net Investment S.A. and Galicia Warrants
                           S.A. have been recognized according to the equity
                           method of accounting as of December 31, 2004.

                           The financial statements of Banco de Galicia y Buenos
                           Aires S.A. have been prepared in accordance with
                           Argentine Banking GAAP, which differ in the aspects
                           mentioned in Note 3.c. to consolidated financial
                           statements from Argentine GAAP. This investment has
                           been stated at equity value arising from financial
                           statements valued in accordance with the above-
                           mentioned standards.

                           The equity investment in Sudamericana Holding S.A.
                           has been accounted for under the equity method, on
                           the basis of September 30, 2004 financial statement,
                           and considering the significant movements occurred
                           from that date to the closing date of these financial
                           statements, in accordance with Argentine GAAP.

                           The financial statements of Sudamericana Holding S.A.
                           have been prepared as established by the National
                           Insurance

                                       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 the Financial Statements (Continued)
                            (In thousands of pesos)

NOTE 2:
------       (Continued)
                           Superintendency (SSN), without recognizing the effect
                           of inflation for January and February 2003. This
                           criterion is not in accordance with Argentine GAAP.
                           Nevertheless, this departure has not generated a
                           significant effect on the financial statements of
                           Grupo Financiero Galicia S.A.


                d.   Fixed assets

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

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

                     The index-adjusted net book values of the assets, taken as
                     a whole, do not exceed their 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
                     fourth and fifth paragraphs of this Note, net of the
                     corresponding accumulated amortization, calculated based on
                     their estimated useful life. The Company has recorded a
                     valuation allowance of $ 1,438 for the goodwill for the
                     acquisition of the shares representing 87.50% of the
                     capital stock and voting rights of Galicia Warrants S.A.
                     (See Schedule E)

                     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
                     period/year end.

                     The logotype and organization expenses were written off in
                     fiscal 2003.

                                       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 the Financial Statements (Continued)
                            (In thousands of pesos)

NOTE 2:              (Continued)

                f.   Income Tax

                     The Company has recognized the income tax charge according
                     to the deferred tax liability method, thus recognizing the
                     timing differences between measurements of accounting and
                     tax assets and liabilities. (See Note 13).

                     For purposes of determining the deferred assets and
                     liabilities, the tax rate that is expected to be in force
                     at the moment of their reversal or use has been applied to
                     the timing differences identified and tax loss
                     carry-forwards, under the legal regulations enacted at the
                     date of issue of these financial statements.

                g.   Presumptive minimum income Tax

                     The Company determines the tax on minimum notional income
                     at the statutory rate of 1% of the computable assets at
                     year end. This tax is supplementary to the income tax. The
                     Company's tax liability for each year is to coincide with
                     the higher of the two taxes. However, if the tax on minimum
                     notional income were to exceed income tax in a given fiscal
                     year, such excess may be computed as a payment on account
                     of the income tax to be generated in any of the next 10
                     fiscal years.

                     The Company has recognized the tax on minimum notional
                     income accrued in the current year and paid in prior years
                     as a credit, because it expects to be able to compute it as
                     a payment on account of income tax in future years.

                h.   Shareholders' Equity

                     h.1.   Activity in the shareholders' equity accounts has
                            been restated as mentioned in the fifth and sixth
                            paragraphs of this Note.

                            The "Subscribed and paid in 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.

                     h.2.   Income and expense accounts

                                       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 the Financial Statements (Continued)
                             (In thousands of pesos)


NOTE 2:  (Continued)

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

                i.  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.

NOTE 3:         CASH AND BANKS
------          --------------
                The breakdown of this caption was as follows:

                                                     12.31.04      12.31.03
                                                   -------------  ------------
                Cash (Schedule G)                            463           932
                Banks - current accounts (Note 11)            77           231
                Checks for deposit                             -             1
                                                   -------------  ------------
                Total                                        540         1,164
                                                   =============  ==============

NOTE 4:         OTHER RECEIVABLES
------          -----------------


                The breakdown of this caption was as follows:

                                                     12.31.04      12.31.03
                                                ---------------- --------------
                Current
                Fiscal credits                                77            450
                Prepaid expenses                               7              6
                Sundry debtors (Note 11 and
                  Schedule G)                                  -          2,694
                Others                                         5          2,595
                                                -----------------  -------------
                Total                                         89          5,745
                                                =================  =============




NOTE 4:         (Continued)
------
                                                     12.31.04      12.31.03
                                                 --------------  ---------------
                Non-current
                Fiscal credits (Note 13)                      5              947
                Prepaid expenses                              1                2
                Sundry debtors (Note 11
                  and Schedule G)                         4.774            3,489
                                                 --------------  ---------------
                Total                                     4.780            4,438
                                                 ===================== =========

                                       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 the Financial Statements (Continued)
                             (In thousands of pesos)


NOTE 5:         SALARIES AND SOCIAL SECURITY LIABILITIES

                The breakdown of this caption was as follows:

                                                     12.31.04       12.31.03
                                                  -------------   -------------
                Integrated Pension and Survivors'
                  Benefit System                             15              10
                Health care plans                             4               4
                Directors' and syndics' fees accrual        140              60
                                                   -------------  -------------
                Total                                       159              74
                                                   =============  =============

NOTE 6: TAX     LIABILITIES

                The breakdown of this caption was as follows:

                                                     12.31.04       12.31.03
                                                  -------------   -------------
                Current
                Income tax withholdings to be
                  deposited                                    5              22
                Value added tax                               12               -
                Income tax accrual, net                   28.311               -
                Provision for turnover tax, net               23               2
                Provision for presumptive minimum
                  income tax, net                              -             274
                Provision for tax on personal
                  assets                                   3.676               -
                                                  --------------  --------------
                Total                                     32.027             298
                                                  ==============  ==============

                Non-current                          12.31.04       12.31.03
                                                  --------------  --------------
                Deferred tax liability (Note 13)          26,383          43,354
                                                  --------------  --------------
                Total                                     26,383         43,354
                                                  ==============  =============

NOTE 7:         OTHER LIABILITIES
------          -----------------

                The breakdown of this caption was as follows:

                Current                              12.31.04       12.31.03
                                                  -------------   -------------
                Sundry creditors (Schedule G)                147            525
                Expense accrual (Note 11 and
                  Schedule G)                                967            829
                Directors' qualification bond                  3              -
                                                  --------------  -------------
                Total                                      1.117          1,354
                                                  ==============  =============

                Non-current                          12.31.04       12.31.03
                                                  --------------  --------------
                Directors' qualification bond                  3              6
                                                  --------------  -------------
                Total                                          3              6
                                                  ==============  =============

                                       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 the Financial Statements (Continued)
                             (In thousands of pesos)

NOTE 8:        CAPITAL STATUS
------         --------------

               As of December 31, 2004, the capital status of the Company was as
               follows:
<TABLE>
<CAPTION>

               Subscribed,                                  Approved by
               issued, paid-            Restated
               in and                      to                                             Date of registration with
               registered     Face      constant                                             the Public Registry
               capital       Value      currency       Body               Date                  of Commerce
               ----------------------------------------------------------------------------------------------------
<S>            <C>         <C>         <C>          <C>                  <C>                    <C>
               Opening     1,092,407   2,407,080    Shareholders'        05.16.00
               balance                              meeting              07.24.00 and           08.09.00
                                                    Board of Directors   07.26.00
               ---------------------------------------------------------------------------------------------------

               Capital       149,000     149,000    Shareholders'        01.02.04,              06.08.04
               increase                                meeting           04.23.04 and
                                                    Board of Directors   05.13.04
                          ______________________

               Balance as  1,241,407   2,556,080
               of 12.31.04
</TABLE>

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

               As of December 31, 2004 the breakdown of receivables, investments
               and debts according to their estimated collection or payment
               terms was as follows:

<TABLE>
<CAPTION>


                                                      Salaries and
                                          Other      social security    Tax          Other
                          Investments   receivables   liabilities   liabilities   liabilities
----------------------------------------------------------------------------------------------
<S>                      <C>              <C>             <C>          <C>           <C>

Falling due within:
1st  Quarter                 7.372           14            19              40          206
2nd Quarter                 29.862            6           140          31.987            3
3rd Quarter                      -           68             -               -          908
4th Quarter                    208            1             -               -            -
After one year             358.633        4.774             -          26.383            3
                         ---------------------------------------------------------------------
Subtotal falling due       396.075        4.863            159         58.410        1.120
                         ---------------------------------------------------------------------
No set due date          1.170.715            6              -              -            -
Past due                         -            -              -              -            -
                         ---------------------------------------------------------------------
Total                    1.566.790        4.869            159         58.410        1.120
                         ---------------------------------------------------------------------
Non-interest bearing     1.170.715        1.240            159         58.410        1.120
At a fixed rate            396.075        3.629              -              -            -
----------------------------------------------------------------------------------------------
Total                    1.566.790        4.869            159         58.410        1.120

</TABLE>


NOTE 10:          EQUITY INVESTMENTS IN OTHER COMPANIES
-------           -------------------------------------
                  The breakdown of long-term investments was as follows:
NOTE 10:

                                       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 the Financial Statements (Continued)
                             (In thousands of pesos)
NOTE 10 (Continued)
-------

<TABLE>
<CAPTION>

                                          As of 12.31.04
--------------------------------------------------------------------------------------------------------------------
Issuing company                Shares            Percentage of interest held in        Principal          Face
                      ----------------------------------------------------------       line of            value
                                                                                       business           per share
                                                                    Possible
                         Type         Number      Total Capital       votes
------------------------------------------------------------------------------  ------------------------------------------
<S>                   <C>           <C>            <C>           <C>                   <C>                <C>

Banco de Galicia y      Ordinary            101                                        Financial          0.001
Buenos Aires S.A.       class "A"                                                      activities
                        Ordinary
                        class "B"   438,628,250                                                           0.001
                      --------------------------------------------------------
                          Total     438,628,351    93.591649%    93.591655%
                      ----------------------------------------------------------------------------------------------------

Net Investment S.A.     Ordinary         10,500        87.50%        87.50%           Financial
                                                                                         and
                                                                                      investment
                                                                                      activities          0.001
--------------------------------------------------------------------------------------------------------------------------
Sudamericana            Ordinary         31,302                                       Financial           0.001
Holding S.A.            class "A"                                                        and
                        Ordinary                                                      Investment
                        class "B"        41,735                                       activities          0.001
                      --------------------------------------------------------
                          Total          73,037    87.500899%    87.500899%
--------------------------------------------------------------------------------------------------------------------------

                                                                                     Issuer of
                                                                                     warehouse
                                                                                     receipts and
Galicia Warrants S.A.   Ordinary        175,000        87.50%        87.50%          warrants             0.001


                                          As of 12.31.03
--------------------------------------------------------------------------------------------------------------------------
Issuing company              Shares              Percentage of interest held in

                      --------------------------------------------------------       Principa            Facel
                                                                    Possible         line of             value per
                      Type           Number       Total Capital      votes           business            share
--------------------------------------------------------------------------------------------------------------------------
Banco de Galicia y   Ordinary              101                                       Financial           0.001
Buenos Aires S.A.    class "A"                                                       activities
                     Ordinary
                     class "B"     438,599,602                                                           0.001
                     ---------------------------------------------------------
                       Total       438,599,703    93.585537%    93.585542%
--------------------------------------------------------------------------------------------------------------------------
                                                                                     Financial
                                                                                        and
                                                                                     investment
Net Investment S.A.  Ordinary           10,500        87.50%        87.50%           activities          0.001
--------------------------------------------------------------------------------------------------------------------------
                     Ordinary                                                        Financial
Sudamericana         Class "A"          31,302                                          and              0.001
Holding S.A.         Ordinary                                                        investment
                     Class "B"          41,735                                       activities          0.001
                     --------------------------------------------------------
                       Total            73,037    87.500899%    87.500899%
-------------------------------------------------------------------------------------------------------------------------
                                                                                     Issuer of
                                                                                     warehouse
                                                                                     receipts
                                                                                        and
Galicia Warrants S.A. Ordinary         175,000        87.50%        87.50%           warrants            0.001
------------------------------------------------------------------------------------------------------------------------
</TABLE>


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

                                                Issuing company
                            ---------------------------------------------------

                                        Banco de Galicia
           Financial condition          y Buenos Aires
              as of 12.31.04            S.A.                Net Investment S.A.
--------------------------------------------------------------------------------

Assets                                         22.259.495       3.860
Liabilities                                    21.061.248          45
Shareholders' equity                            1.198.247       3.815
Result for the fiscal year ended 12.31.04       (108.607)     (2.581)


                                       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 the Financial Statements (Continued)
                             (In thousands of pesos)
NOTE 10 (Continued)
-------


                                                               Issuing company
                                                             -------------------
             Financial condition                               Galicia Warrants
              As of 12.31.04(*)                                      S.A.
--------------------------------------------------------------------------------
Assets                                                                  6.982
Liabilities                                                             2.080
Shareholders' equity                                                    4.902
Result for the period of  14 months ended 12.31.04                        506

(*) See Note 2.c.2.


                                                               Issuing company
                                                             -------------------
              Financial condition                                Sudamericana
                As of 9.30.04(*)                                 Holding S.A.
--------------------------------------------------------------------------------
Assets                                                                 27.868
Liabilities                                                                70
Shareholders' equity                                                   27.798
Result for period of 12 months ended 9.30.04                            4.246

(*) See Note 2.c.2.

<TABLE>
<CAPTION>
                                                                          Issuing company
                                                                ------------------------------------
                                                                 Banco de Galicia
                                                                  y Buenos Aires    Net Investment
              Financial condition as of 12.31.03                       S.A.              S.A.
----------------------------------------------------------------------------------------------------
<S>                                                              <C>                <C>
Assets                                                               21,186,558           5,779
Liabilities                                                          19,833,805              67
Shareholders' equity                                                  1,352,753           5,712
Result for the fiscal year ended 12.31.03                             (198,974)         (6,052)
</TABLE>

                                                               Issuing company
                                                             -------------------
      Financial condition as of 10.31.03                       Galicia Warrants
                                                                     S.A.
--------------------------------------------------------------------------------
Assets                                                                  6,071
Liabilities                                                             1,154
Shareholders' equity                                                    4,917
Result for period of 12 months ended 10.31.03                             536

                                                               Issuing company
                                                             -------------------
      Financial condition as of 9.30.03                          Sudamericana
                                                                 Holding S.A.
--------------------------------------------------------------------------------
Assets                                                                 23,637
Liabilities                                                                86
Shareholders' equity                                                   23,551
Result for the period of 12 months ended 9.30.03                      (7,889)

                                       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 the Financial Statements (Continued)
                             (In thousands of pesos)

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:

<TABLE>
<CAPTION>
Banco de Galicia y Buenos Aires S.A.                           12.31.04             12.31.03
                                                             ------------         ------------
<S>                                                          <C>                  <C>
ASSETS
Cash and banks - current accounts (Note 3)                             74                  225
Investments - time deposits (Schedules C and G)                    16.558                4,025
Investments - Negotiable Obligations (Schedules C and G)          232.256                    -
                                                             ------------         ------------
  Total                                                           248.888                4,250
                                                             ============         ============

                                                               12.31.04             12.31.03
                                                             ------------         ------------
LIABILITIES
Other liabilities - expense accrual (Note 7)                          161                  154
                                                             ------------         ------------
  Total                                                               161                  154
                                                             ============         ============

INCOME                                                        12.31.04              12.31.03
                                                             ------------         ------------
Financial income - interest on time deposits                           66                1.416
Financial income - CER adjustment to time deposits                    105                    -
Financial income - interest on negotiable obligations              32.584                    -
                                                             ------------         ------------
 Total                                                             32.755                1.416
                                                             ============         ============

EXPENSES
Administrative expenses (Schedule H)
  Fees for services                                                     3                    -
  Leasing of brand                                                    753                  722
  Bank charges                                                          6                    9
  General expenses                                                    197                   63
                                                             ------------         ------------
Total                                                                 959                  794
                                                             ============         ============

Banco Galicia (Cayman) Limited
                                                              12.31.04              12.31.03
                                                             ------------         ------------
ASSETS
Other receivables - Sundry debtors (Note 4 and
Schedule G)                                                         3,629                3,488
                                                             ------------         ------------
Total                                                               3,629                3,488
                                                             ============         ============

                                                              12.31.04              12.31.03
                                                             ------------         ------------
INCOME
Interest income - other interest                                       70                   31
                                                             ------------         ------------
Total                                                                  70                   31
                                                             ============         ============

Banco Galicia Uruguay S.A.
                                                              12.31.04              12.31.03
                                                             ------------         ------------
ASSETS
Other receivables - Sundry debtors                                  1.144                    -
Investments - Special current account deposits
(Schedules C and G)                                                     -                  428
Investments - Negotiable obligations (Schedules C and
G)                                                                126.585              126.792
</TABLE>

                                       94
<PAGE>
                         Grupo Financiero Galicia S.A.
   "Corporation which has not adhered to the Optional System for the Mandatory
                   Acquisition of Shares in a Public Offering"
                  Notes to the Financial Statements (Continued)
                             (In thousands of pesos)

<TABLE>
<S>                                                          <C>                  <C>
                                                             ------------         ------------
Total                                                             127.729              127.220
                                                             ============         ============

LIABILITIES                                                    12.31.04              12.31.03
                                                             ------------         ------------
Other liabilities - Sundry creditors (Note 7 and
Schedule G)                                                             2                    -
                                                             ------------         ------------
Total                                                                   2                    -
                                                             ============         ============


INCOME                                                         12.31.04              12.31.03
                                                             ------------         ------------
Interest income - Interest on negotiable obligations                1.258                1.400
                                                             ------------         ------------
Total                                                               1.258                1.400
                                                             ============         ============
----------------------------------------------------------------------------------------------
EXPENSES                                                       12.31.04              12.31.03
                                                             ------------         ------------
Administrative expenses (Schedule H)
General expenses                                                        -                    1
                                                             ------------         ------------
Total                                                                   -                    1
                                                             ============         ============
----------------------------------------------------------------------------------------------
Galicia Valores S.A. Sociedad de Bolsa

                                                               12.31.04              12.31.03
                                                             ------------         ------------
EXPENSES
Financial loss on Indol                                                 -                    2
                                                             ------------         ------------
Total                                                                   -                    2
                                                             ============         ============

B2Agro S.A.
                                                               12.31.04              12.31.03
                                                             ------------         ------------
ASSETS
Other receivables - Sundry debtors (Note 4 and Schedule
G)                                                                      -                2,694
                                                             ------------         ------------
Total                                                                   -                2,694
                                                             ============         ============

INCOME                                                         12.31.04              12.31.03
                                                             ------------         ------------

Interest income - other interest                                       52                   95
                                                             ------------         ------------
Total                                                                  52                   95
                                                             ============         ============

Tarjetas del Mar S.A.                                          12.31.04              12.31.03
                                                             ------------         ------------
INCOME
Other income and expenses                                              27                   32
                                                             ------------         ------------
Total                                                                  27                   32
                                                             ============         ============
</TABLE>

NOTE 12:       RESTRICTIONS IMPOSED ON THE DISTRIBUTION OF PROFITS
-------        ---------------------------------------------------

               At December 31, 2004 there are no restrictions on the
               distribution of the Company's retained earnings except for those
               established by the Argentine Commercial Companies Law and CNV
               Resolution No. 368/2001 in 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).

                                       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 the Financial Statements (Continued)
                             (In thousands of pesos)

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:

<TABLE>
                                             Other receivables
                         --------------------------------------------------------------
         Item            Argentine source     Foreign source    Specific tax     Others      Total
                            tax losses          tax losses         losses
------------------------------------------------------------------------------------------------------
<S>                      <C>                 <C>                <C>              <C>         <C>
Opening balances                      914                  -               -         28         942
Charge to results                   (914)                  -              15     17.819      16.920
                       -------------------------------------------------------------------------------
Closing balances                        -                  -              15     17.847      17.862
======================================================================================================
</TABLE>

               Deferred tax liabilities:

<TABLE>
<CAPTION>
Item                                    Fixed assets       Investments           Total
<S>                                     <C>                <C>                   <C>
Opening balances                                  10            43.344          43.354
Charge to results                                  3               888             891
                                     -----------------------------------------------------
Closing balances                                  13            44.232          44.245
                                     =====================================================
</TABLE>

               Net deferred liabilities at period end, derived from the
               information included in the preceding tables, amount to $ 26,383.

               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                                          (96.898)
Restatement of income and expense items                               2.428
Result of long-term investments                                      94.202
Consolidation adjustment per Technical Pronouncement No. 4           29.788
Sundry non-deductible expenses                                           51
Sundry income not included in the calculation                          (85)
Impairment of value of goodwill                                       (811)
Presumptive interest                                                     30
Non-deductible expenses                                              10.726
Organization expenses                                               (2.367)
                                                                  ---------
Taxable accounting result                                            37.064
Statutory tax rate                                                      35%
                                                                  ---------
Total income tax charge                                              12.973
Variation between closing and opening deferred tax assets            16.920
Variation between closing and opening deferred tax liabilities        (891)
                                                                  ---------
Subtotal                                                             29.002
Foreign source tax loss                                                (85)
                                                                  ---------
Tax determined                                                       28.917
                                                                  =========

                                       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 the Financial Statements (Continued)
                             (In thousands of pesos)

NOTE 14:       EARNINGS PER SHARE
-------        ------------------

               Below is a breakdown of the Earnings per share as of December 31,
               2004 and 2003:

<TABLE>
<CAPTION>
                                                             12.31.04               12.31.03
                                                          -------------          -------------
<S>                                                       <C>                    <C>
Loss for the year                                             (109.871)              (222.220)
Outstanding ordinary shares weighted average                  1.092.407              1.092.407
Adjustment derived from preferred share issue
convertible into Class B ordinary shares                         92.820                      -
Diluted ordinary shares weighted average                      1.185.227              1.092.407
Earning per ordinary share:
- Basic                                                        (0,1006)               (0,2034)
- Diluted                                                      (0,0927)               (0,2034)
</TABLE>

NOTE 15:       SUBSEQUENT EVENTS
--------       -----------------

               After December 31, 2004, the Company made new cash irrevocable
               capital contributions in Net Investment S.A. for $ 32.

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 $ 149,000, taking it to $ 1,241,407
               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 thousand, 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 was consummated through the issuance of up
               to 149,000 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 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

                                       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 the Financial Statements (Continued)
                             (In thousands of pesos)

NOTE 16:       (Continued)

               and accretion rights over any eventual issuance of shares by the
               Company. The preferred shares were 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 thousand (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.

               On April 21, 2004, the CNV authorized the public offering of the
               preferred shares for up to $ 149,000, with a face value of $
               0.001 each, to be placed with a premium subscription, as well as
               the public offering of ordinary Class B shares with a face value
               of $ 0.001 each and entitled to one vote per share, to be
               exchanged for the preferred shares. On April 26 and 29, 2004, the
               Buenos Aires and Cordoba Stock Exchanges, respectively,
               authorized the listing of the preferred shares and the Class B
               ordinary shares arising from the conversion of those preferred
               shares.

               As a result of the full subscription and payment of the 149,000
               non-voting preferred shares not yet issued, on May 13, 2004, the
               Company's Board of Directors has set the new Company's capital at
               pesos 1,241,407.

               This increase has been registered with the Superintendency of
               Corporations on June 8, 2004, under number 6,907, Book 25 of
               Companies by Shares.

               In addition, as a result of that capital increase, in May 2004
               Grupo Financiero Galicia S.A. received in payment thereof
               99,965,603 Subordinated Negotiable Obligations due 2019 (face
               value) issued by Banco de Galicia y Buenos Aires S.A.

NOTE 17:       PRIOR YEAR ADJUSTMENT
-------        ---------------------

               In the quarters ended March 31 and September 30, 2004, the
               Company recognized under Prior year adjustment the proportion
               attributable to its participation in Banco de Galicia y Buenos
               Aires S.A. for the adjustments made by that Bank in those periods
               (See Note 12 to consolidated financial statements).

               The prior year adjustment disclosed in the Statement of Changes
               in Shareholders' Equity for comparative purposes is composed of a
               gain adjustment of $ 40,758 derived from the application of the
               deferred tax method for calculating income tax and a loss of $
               37,792 (see preceding paragraph).

                                       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"
Fixed assets and investments in assets of a similar nature
For the fiscal year ended December 31, 2004
In comparative format with the fiscal year ended December 31, 2003.
(In thousands of pesos)

                                                                      Schedule A

<TABLE>
================================================================================
                                              ORIGINAL VALUES
                             --------------------------------------------------

                                  At
                             beginning of
Principal account                year       Increases   Deletions   At year end
<C>                          <C>            <C>         <C>         <C>
Real estate                     3,258               -           -         3,258
--------------------------------------------------------------------------------
Furniture and facilities          206               1           -           207
--------------------------------------------------------------------------------
Hardware and software             521              64           -           585
--------------------------------------------------------------------------------
Total                           3,985              65           -         4.050
================================================================================
</TABLE>



<TABLE>
===============================================================================================================
                                                   DEPRECIATION
                              ------------------------------------------------------
                                                         For the year
                              Accumulated               ---------------                    Net book    Net book
                              at beginning              Rate              Accumulated      value at    value at
Principal account                of year   Deletions       %     Amount   at year end      12.31.04    12.31.03
<S>                           <C>          <C>          <C>      <C>      <C>              <C>         <C>
Real estate                          128           -       2         62           190         3.068       3,130
---------------------------------------------------------------------------------------------------------------
Furniture and facilities             121           -      20         41           162            45          85
---------------------------------------------------------------------------------------------------------------
Hardware and software                305           -      20        110           415           170         216
---------------------------------------------------------------------------------------------------------------
Total                                554           -                213           767         3.283       3,431
===============================================================================================================
</TABLE>

                                       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"
Intangible assets
For the fiscal year ended December 31, 2004
In comparative format with the fiscal year ended December 31, 2003.
(In thousands of pesos)

                                                                      SCHEDULE B

<TABLE>
<CAPTION>
                                    ORIGINAL VALUES
                    -------------------------------------------------

                         At
                    beginning of
Principal account       year       Increases  Deletions   At year end
<S>                 <C>            <C>        <C>         <C>
Goodwill               20,064           -          -        20,064
---------------------------------------------------------------------
Total                  20,064           -          -        20,064
</TABLE>

<TABLE>
<CAPTION>
                                          AMORTIZATION
                    -------------------------------------------------------
                    Accumulated
                        at                    For the year      Accumulated   Valuation      Net book    Net book
                     beginning              ----------------        at        allowance      value at    value at
Principal account     of year    Deletions  Rate %    Amount     year end    (Schedule E)    12.31.04    12.31.03
<S>                 <C>          <C>        <C>       <C>       <C>          <C>             <C>         <C>
Goodwill               10,868          -      20       4.013       14.881           1.438       3.745       6,947
------------------------------------------------------------------------------------------------------------
Total                  10,868          -               4.013       14.881           1.438       3.745       6,947
</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"
Investments
Equity investments in Other Companies and Other Investments
Statement of Financial Condition as of December 31, 2004 and December 31, 2003
(In thousands of pesos)

                                                                      Schedule C

<TABLE>
<CAPTION>
          Issuance and characteristics of the securities                 Book Value           Book Value
                                                                       as of 12.31.04       as of 12.31.03
--------------------------------------------------------------------------------------------------------------
<S>                                                                    <C>                  <C>
Current  investments (*)
Special current account deposits (Notes 9 and 11 and Schedule G)                    55                 428
Mutual Funds (Note 9)                                                              265                 190
Time deposits (Notes 9 and 11 and Schedule G)                                   20.100              20,929
Government securities (Notes 9 and 11 and Schedule G)                            2.148                   -
Corporate securities (Notes 9 and 11 and Schedule G)                            14.666                   -
Negotiable Obligations  (Notes 9 and 11 and Schedule G)                            208               2,952
                                                                   -------------------------------------------
Total current investments                                                       37.442              24,499
==============================================================================================================
</TABLE>
(*) include accrued interest.

                                      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"
Investments
Equity investments in Other Companies and Other Investments
Statement of Financial Condition as of December 31, 2004 and December 31, 2003
(In thousands of pesos)

                                                             Schedule C (contd.)

<TABLE>
<CAPTION>




                                                                                                 Quotation
                                                                                                 per share    Equity value
Issuance and characteristics of                             Face                 Acquisition       as of          as of
       the securities               Class                   Value      Number       cost         12.31.04       12.31.04
<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.                          Ordinary class "A"      0.001          101                           -
                                    Ordinary class "B"      0.001  438,628,250                      0.0038
                                                                   -------------------------
                                                                   438,628,351     2,571,482                     1,138,210


Net Investment S.A.                 Ordinary                0.001       10,500            23             -
                                    Irrevocable                                       22,429             -           4,400
                                    contributions

Sudamericana Holding S.A.           Ordinary class "A"      0.001       31,302                           -
                                    Ordinary class "B"      0.001       41,735                           -
                                                                   -------------------------
                                                                        73,037        33,003                        24,391

                                    Irrevocable
                                    contributions                                      9,916

Galicia Warrants S.A.               Ordinary                0.001      175,000        11,829             -           4,299




Total Non-current investments                                                      2,648,682                     1,171,300
</TABLE>


<TABLE>
<CAPTION>
                                                                              INFORMATION ON THE ISSUING COMPANY
                                                        ----------------------------------------------------------------------------
                                                                              LATEST FINANCIAL STATEMENTS (Note 10)
                                                        ----------------------------------------------------------------------------
                                                                                                                        % of equity
                                Book value  Book value  Principal                                  Net                    held in
Issuance and characteristics of    as of       as of     line of                     Capital     Income/  Shareholders'  the capital
       the securities            12.31.04    12.31.03   business              Date    Stock      (loss)      equity        stock
<S>                             <C>         <C>       <C>                  <C>       <C>       <C>         <C>          <C>
Non-current investments
Negotiable Obligations
(Note 11 and Schedule G)        358,633(5)    123,840

Banco de  Galicia y Buenos
Aires S.A.


                                 1,138,210  1,263,443 Financial            12.31.04  468,662  (108,607)(1)  1,198,247    93.591649%
                                                      activities

Net Investment S.A.                                   Financial and
                                  3,815(4)      5,975 investment                          12    (2,581)(1)      3,815    87.500000%
                                                      activities           12.31.04

Sudamericana Holding S.A.                             Financial and
                                                      investment
                                                      activities            9.30.04       83      2,992(2)     27,798    87.500899%
                                    24,391     20,675




Galicia Warrants S.A.                4,299      4,312 Issuer of
                                                      warehouse
                                                      receipts and
                                                      warrants             12.31.04      200        441(3)      4,902    87.500000%

Total Non-current investments    1,529,348  1,418,245
</TABLE>

(1) for the fiscal year ended December 31, 2004.
(2) for the period of three months ended June 30, 2004.
(3) for the non-annual period of eight months ended December 31, 2004.
(4) includes valuation allowance for $585.
(5) includes accrued interest.

                                      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"
                           Allowances and Provisions
                  For the fiscal year ended December 31, 2004
      In comparative format with the fiscal year ended December 31, 2003.
                            (In thousands of pesos)

                                                                      Schedule E

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

Valuation allowance - Equity investment in
other companies (Schedule C - Continued)                      -             585                 -               585
Valuation allowance - Intangible assets
(Schedule B)                                              2,249               -             (811)             1,438
-----------------------------------------------------------------------------------------------------------------------
Total as of 12.31.04                                      2,249             585             (811)             2,023
-----------------------------------------------------------------------------------------------------------------------
Total as of 12.31.03                                          -           3,000             (751)             2,249
=======================================================================================================================
</TABLE>

                                      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"
                    Foreign Currency Assets and Liabilities
 Statement of Financial Condition as of December 31, 2004 and December 31, 2003
                            (In thousands of pesos)

                                                                      Schedule G

<TABLE>
<CAPTION>
                                                                      Amount in                           Amount in
                                       Amount and type                Argentine                           Argentine
                                          of foreign                   currency     Amount and type of     currency
              Captions                     currency      Quotation   at 12.31.04     foreign currency    at 12.31.03
-----------------------------------------------------------------------------------------------------------------------
<S>                                    <C>               <C>         <C>            <C>                  <C>
ASSETS
CURRENT ASSETS
Cash and cash equivalents
Cash                                   US$    155.35        2,939           457     US$        320.35           923
Banks                                              -        2,939             -                  0.49             1
Investments
Special current account deposits       US$     18,49        2,939            54     US$        148.70           428
Time deposits                          US$    173,35        2,939           509     US$      3,987.38        11,484
Government securities                  US$    730,79        2,939         2.148     US$             -             -
Corporate securities                   US$  4.990,07        2,939        14.666     US$             -             -
Negotiable obligations                 US$     70,68        2,939           208     US$      1,025.07         2,952
Other receivables
Sundry debtors                         US$         -        2,939             -     US$        935.31         2,694
                                                                     ----------                          ----------
Total Current Assets                                                     18.042                              18,482
                                                                     ----------                          ----------
NON-CURRENT ASSETS
Other receivables
Sundry debtors                         US$  1.624,16        2,939         4.773     US$      1,210.78         3,488
Investments
Negotiable obligations                 US$122.025,37        2,939       358.633     US$     43,000.00       123,840
                                                                     ----------                          ----------
Total Non-current Assets                                                363.406                             127,328
                                                                     ----------                          ----------
Total Asset                                                             381.448                             145,810
                                                                     ==========                          ==========
LIABILITIES
CURRENT LIABILITIES
Other liabilities
Sundry creditors                       US$     48,18        2,979          144      US$         23.32            68
Expense accrual                        US$    174,22        2,979          519      US$        134.22           393
                                                                     ----------                          ----------
Total Current Liabilities                                                  663                                  461
                                                                     ----------                          ----------
Total Liabilities                                                          663                                  461
=======================================================================================================================
</TABLE>

                                      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"
         Information required by Section 64, subsection b) of Law 19550
                  For the fiscal year ended December 31, 2004
              In comparative format with the previous fiscal year.
                            (In thousands of pesos)

                                                                      Schedule H

<TABLE>
<CAPTION>
                            Captions                                Total as of     Administrative      Total as of
                                                                     12.31.04          expenses          12.31.03
<S>                                                                <C>             <C>                 <C>
Salaries and social security charges                                         891               891               700

Services to the staff                                                         32                32                21

Training courses                                                              33                33                 5

Directors' and syndics' fees                                                 249               249               123

Fees for services (*)                                                      1.059             1.059             2.181

Fixed asset depreciation                                                     213               213               211

Intangible asset amortization                                              4.013             4.013             4.013

Leasing of brand (*)                                                          48                48                46

Stationery and office supplies                                                18                18                17

Condominium Expenses                                                          84                84                61

Entertainment, travel and per diem                                            42                42                28

Vehicle expenses                                                               -                 -                 4

Electricity and communications                                                64                64                73

Taxes, rates and assessments and contributions                             9.433             9.433               693

Bank charges (*)                                                              12                12                 3

General expenses (*)                                                       1.341             1.341               600
                                                                 ------------------------------------------------------
Total                                                                     17.532            17.532             8.779
=======================================================================================================================
</TABLE>
(*) Balances net of eliminations corresponding to intercompany transactions
(per Section 33 of Law 19550). See Note 11 to the financial statements.

                                      105
<PAGE>
                         Grupo Financiero Galicia S.A.
          "Corporation which has not adhered to the Optional System for
            the Mandatory Acquisition of Shares in a Public Offering"
   Information required in addition to the Notes to the Financial Statements
                              For the fiscal year
             commenced January 1, 2004 and ended December 31, 2004.
                        Presented in comparative format
                             (In thousands of pesos)

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 INVESTMENTS 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, 2004 and December 31, 2003 there were no
               receivables from or loans granted to directors or syndics or
               their relatives up to the second degree inclusive.

                                      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"
   Information required in addition to the Notes to the Financial Statements
                                  (Continued)
                            (In thousands of pesos)

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

               As of December 31, 2004 and December 31, 2003 the Company did not
               have any inventories.

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

               See Schedule A to the financial statements.

               a) As of December 31, 2004 and December 31, 2003 the Company did
               not have any technically appraised fixed assets.

               b) As of December 31, 2004 and December 31, 2003 the Company did
               not have any obsolete fixed assets which have a carrying value.

               c) As of December 31, 2004 and December 31, 2003, 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, 2004 and December 31, 2003, the breakdown of
               insurance policies taken out by the Company for its fixed assets
               was as follows:

<TABLE>
<CAPTION>
                                                                   Book         Book
                                                                   Value        Value
                                                       Insured     as of        as of
Insured assets    Risks covered                        amount     12.31.04    12.31.03
<S>               <C>                                  <C>        <C>         <C>
Office assets     Fire, thunderbolt and/or explosion     200        215          301
</TABLE>

                                      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"
   Information required in addition to the Notes to the Financial Statements
                                  (Continued)
                            (In thousands of pesos)

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

               See Schedule E to the financial statements.

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

               As of December 31, 2004 and December 31, 2003, 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, 2004 and December 31, 2003, there were no
               irrevocable contributions towards future share subscriptions.

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

               As of December 31, 2004 and December 31, 2003, there were no
               cumulative unpaid dividends on preferred shares.

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

               See Note 12 to the financial statements.

                                      108
<PAGE>
                         Grupo Financiero Galicia S.A.
          "Corporation which has not adhered to the Optional System for
            the Mandatory Acquisition of Shares in a Public Offering"
       Supplementary and Explanatory Statement by the Board of Directors
                 For the fiscal year commenced January 1, 2004
         and ended December 31, 2004, presented in comparative format.
                            (In thousands of pesos)

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, 2004 and December 31, 2003 the Company had not
               set up any allowances or provisions.

     b)   Inventories:
          As of December 31, 2004 and December 31, 2003, the Company did not
          have any inventories.

B.   Non-Current Assets:

     a)   Receivables:
               As of December 31, 2004 and December 31, 2003 the Company had not
               set up any allowances or provisions.

     b)   Inventories:
               As of December 31, 2004 and December 31, 2003, the Company did
               not have any inventories.

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

     d)   Fixed assets:
               1)   As of December 31, 2004 and December 31, 2003, the Company
                    did not have any technically appraised fixed assets.
               2)   As of December 31, 2004 and December 31, 2003, the Company
                    did not have any obsolete fixed assets which have a carrying
                    value.

                                      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"
       Supplementary and Explanatory Statement by the Board of Directors
                                  (Continued)
                            (In thousands of pesos)

     e)   Intangible assets:
               1)   See Note 2.e. and Schedules B and E to the financial
                    statements.
               2)   As of December 31, 2004 and December 31, 2003, 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, 2004 and December 31, 2003, the Shareholders'
          Equity did not include the Irrevocable Advances towards Future Share
          Issues account.
     2)   As of December 31, 2004 and December 31, 2003, 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
          investments in other companies.
     2)   As of December 31, 2004 and December 31, 2003, the Company recorded
          receivables for operations conducted with related companies for $
          4,773 and $ 6,182, respectively.

                                      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"
       Supplementary and Explanatory Statement by the Board of Directors
                                  (Continued)
                            (In thousands of pesos)

     3)   As of December 31, 2004 and December 31, 2003 there were no
          receivables due from or loans granted to directors or syndics or
          members of the surveillance committee or their relatives up to the
          second degree inclusive.
     4)   See Notes 9 and 11 to the financial statements.
     5)   As of December 31, 2004 and December 31, 2003, the breakdown of
          insurance policies taken out by the Company for its fixed assets was
          as follows:

<TABLE>
<CAPTION>
                                                             Insured    Book Value    Book Value
Insured assets                Risks covered                  amount        as of        as of
                                                                         12.31.04      12.31.03
<S>               <C>                                        <C>        <C>           <C>
Office assets     Fire, thunderbolt and/or explosion            200          215          301
</TABLE>

     6)   As of December 31, 2004 and December 31, 2003, there were no
          contingencies highly likely to occur which have not been given
          accounting recognition.
     7)   As of December 31, 2004 and December 31, 2003, 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 14, 2005.

(Signed) Antonio Roberto Garces
Chairman

                                      111
<PAGE>
                         Grupo Financiero Galicia S.A.
          "Corporation which has not adhered to the Optional System for
            the Mandatory Acquisition of Shares in a Public Offering"
              Informative Review as of December 31, 2004 and 2003
                            (In thousands of pesos)

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 y Buenos Aires S.A.
through equity investments in companies and undertakings, either existing or to
be created, engaged in financial activities as they are understood in the modern
economy.

The loss for the fiscal year ended December 31, 2004 reported by the Company
amounts to $ 109,871; it was generated by the valuation of the equity investment
in Banco de Galicia y Buenos Aires S.A., which is Grupo Financiero Galicia
S.A.'s main source of income, as shown in its Income Statement.

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 $
492,339, and to carry forward the remaining loss of $ 972,562.

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). On April 21, 2004, the CNV authorized the public offering of the
preferred shares for up to $ 149,000,000 with a face value of $ 1 each, to be
placed with a premium subscription, as well as the public offering of ordinary
Class B shares with a face value of $ 1 each and entitled to one vote per share,
to be exchanged for the preferred shares. On April 26 and 29, 2004, the Buenos
Aires and Cordoba Stock Exchanges, respectively, authorized the listing of the
preferred shares and the Class B ordinary shares arising from the conversion of
those preferred shares.

The Ordinary Meeting of Shareholders held on April 22, 2004 resolved to charge
the loss for fiscal 2003 to Retained Earnings, without it being absorbed. The
meeting further resolved not to continue to claim from shareholders the personal
assets tax amounts due for the fiscal year ended December 31, 2002 and that the
tax incumbent on the shareholders for the fiscal year ended December 31, 2003
and subsequent years would be absorbed by the Company, provided that it cannot
be withheld from dividends.

                                      112
<PAGE>
                         Grupo Financiero Galicia S.A.
          "Corporation which has not adhered to the Optional System for
            the Mandatory Acquisition of Shares in a Public Offering"
              Informative Review as of December 31, 2004 and 2003
                            (In thousands of pesos)

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 issued by Banco Galicia Uruguay S.A.

Interest has been collected on the portion of ordinary negotiable obligations in
US dollars not exchanged for BODEN 2012 accrued 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 negotiable obligations, corresponding
to the second exchange proposed by Banco Galicia Uruguay S.A.

On February 3, 2004, the Company exchanged all its holdings of Ordinary
Negotiable Obligations for BODEN 2012 and US dollars in cash.

In June 2004, the Uruguayan and Argentine regulatory authorities established the
creation of an instrument to secure obligations arising under the reorganization
plan. It has been resolved that, together with the implementation of that
instrument, the Entity's authorities established in the corporate by-laws will
be restored. Considering that for purposes of the performance of these
activities it is not necessary to obtain authorization to act as a commercial
bank, it was resolved to maintain the authorization to operate granted by the
National Executive Branch and withdraw the Central Bank of Uruguay
authorization, Galicia Uruguay continuing to be intervened until such instrument
is implemented. The adoption of this resolution by the Central Bank of Uruguay
does not affect the rights of depositors and holders of obligations arising
under the reorganization plan approved by the Uruguayan courts, nor shall it
affect successive debt swaps undertaken by the Entity.

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

                                      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"
              Informative Review as of December 31, 2004 and 2003
                            (In thousands of pesos)

KEY STATEMENT OF FINANCIAL CONDITION FIGURES

<TABLE>
<CAPTION>
                                   12.31.04        12.31.03        12.31.02       12.31.01       12.31.00

<S>                              <C>             <C>              <C>           <C>             <C>
Current Assets                          38.071          31.408         44.845         147.223       150.640
Non-current Assets                   1.541.156       1.433.061      1.613.242       2.958.782     2.761.154
                                 --------------  --------------  -------------  --------------  ------------
Total Assets                         1.579.227       1.464.469      1.658.087       3.106.005     2.911.794
                                 ==============  ==============  =============  ==============  ============

Current Liabilities                     33.303           1.726          2.828           2.428         1.387
Non-current liabilities                 26.386          43.360         54.140               7             7
                                 --------------  --------------  -------------  --------------  ------------
Total Liabilities                       59.689          45.086         56.968           2.435         1.394
                                 --------------  --------------  -------------  --------------  ------------

Shareholders' Equity                 1.519.538       1.419.383      1.601.119       3.103.570     2.910.400
                                 --------------  --------------  -------------  --------------  ------------
Total                                1.579.227       1.464.469      1.658.087       3.106.005     2.911.794
                                 ==============  ==============  =============  ==============  ============
</TABLE>

KEY INCOME STATEMENT FIGURES

<TABLE>
<CAPTION>
                                   12.31.04        12.31.03        12.31.02       12.31.01       12.31.00

<S>                                <C>             <C>            <C>             <C>            <C>
Ordinary operating result            (111.734)       (208.887)    (1.488.752)         262.430       285.494
Financial results                       13.229        (19.241)         38.427           1.176            80
Other income and expenses                1.607           5.908            540             934           529
                                 --------------  --------------  -------------  --------------  ------------
Ordinary net (loss)/ income           (96.898)       (222.220)   (1.449.785)          264.540       286.103
                                 --------------  --------------  -------------  --------------  ------------
Income tax                            (12.973)               -       (59.244)               -             -
                                 --------------  --------------  -------------  --------------  ------------
Net (loss) / income                  (109.871)       (222.220)    (1.509.029)         264.540       286.103
                                 ==============  ==============  =============  ==============  ============
</TABLE>

RATIOS

<TABLE>
<CAPTION>
                                  12.31.04       12.31.03        12.31.02        12.31.01       12.31.00

<S>                               <C>            <C>             <C>             <C>            <C>
Liquidity                            1,143170       18,196987       15,857496      60,635502      108,608508
Credit standing                     25,457589       31,481679       28,105586   1.274,566735    2.087,804878
Capital assets                       0,975893        0,978553        0,972954       0,952601        0,948266
Profit margin                      (0,073292)      (0,144986)      (0,715943)       0,086450        0,136448
</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"
              Informative Review as of December 31, 2004 and 2003
                            (In thousands of pesos)

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, 2003, 2002, 2001 and
2000 have been restated to constant currency of February 28, 2003.

Equity investments in other companies

o    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.

o    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 investment 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, 2004 and 2003 amounted to $ 683 and
$3,597, respectively. After the closing date of these financial statements,
Grupo Financiero Galicia S.A. made new cash contributions for $ 32.


In 2003, B2Agro S.A. focused its activities on the purchase and sale of inputs,
financial structuring and operations on Mercado a Termino de Buenos Aires. In
addition, the economic feasibility of the various projects undertaken by it was
analyzed, as well as those related to new commercial products and to the
development of technological tools intended for customer management.

In view of the above, considering the projections of the macro and microeconomic
variables, and that the projected increased operations on Mercado a Termino de
Buenos Aires did not materialize in 2004, it was decided to suspend the business
intermediation activity and to put a plan into operation to streamline the
Company structure, bringing activity down to minimum levels to ensure its proper
administration, as well as to carry out a feasibility study to undertake new
businesses.

                                      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"
              Informative Review as of December 31, 2004 and 2003
                            (In thousands of pesos)

The Ordinary and Extraordinary Meeting of Shareholders of Duenovende S.A. held
on April 2003 resolved to dissolve this company in advance and subsequently wind
it up. During the first quarter of 2004, formalities carried out to close down
this company were completed and the Ordinary and Extraordinary Meeting of
Shareholders held on April 2, 2004 approved the final winding up purpose
financial statements. 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.

At the Extraordinary Meeting of Shareholders held on December 29, 2004, Net
Investment S.A., a shareholder of Net Investment B.V., resolved to dissolve the
company in advance and subsequently wind it up as from that date.

Through all the projects related to the various business areas that Net
Investment S.A. evaluates, it seeks to make use of the synergies with the
operations carried out by Grupo Financiero Galicia S.A. and Banco de Galicia y
Buenos Aires S.A.

o    Sudamericana Holding S.A.

Sudamericana Holding S.A. is a group of life, retirement and property and
casualty insurance companies. The equity investment 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.

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.

In 2004, the annual joint production of the life, retirement and property and
casualty insurance companies controlled by Sudamericana Holding S.A. was
$41,089. As of December 31, 2004, these companies had 1,400,000 insureds in all
their lines of business.

From a commercial standpoint, within a more favorable context, the company's
business was focused on taking advantage of the greater demand for insurance
coverage to significantly increase the companies' sales. As a result of these
efforts, in 2004 the volume of premiums was 35.8% higher than in the previous
year, significant progress having been made in the sales of policies through
banking channels.

                                      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"
              Informative Review as of December 31, 2004 and 2003
                            (In thousands of pesos)

On December 15, 2004, Sudamericana Holding S.A., Swiss Medical S.A. and SMG
INVESTMENT S.A. entered into a share purchase agreement involving 100% of the
shares in Instituto de Salta Compania de Seguros de Vida S.A. The price of this
transaction totaled $6,600.

The actual transfer of the shares is subject to the following conditions
precedent: a) the approval of the National Insurance Superintendency; b)
approval of the Competition, Deregulation and Defense of Consumer Department;
and c) approval of the State of the Province of Salta.

Once this transaction has been consummated, it is expected to generate a profit
of approximately $2,083.


o    Galicia Warrants S.A.

Galicia Warrants S.A. has changed its fiscal closing date to December 31 to
coincide with that of Grupo Financiero Galicia S.A.

In the non-annual period ended December 31, 2004, warrants were issued for
US$30,145 thousand which, in terms of volume of goods being operated by Galicia
Warrants in similar periods, represents a 25% increase compared to last year.
The income from services for the non-annual period amounted to $2,223, with a
profit of $441.

This is due to the restructuring of the financial sector, which is the driver of
this activity, to the higher level of agroindustrial activity in general, and of
agricultural and livestock activity in particular, and to the permanent use of
credit instruments such as warrants for the financing of short and medium-sized
enterprises' working capital.

If this economic stability is maintained, other industries, especially those
engaged in seasonal activities, will start to operate with warrants.

The impact generated by the situation mentioned in Note 1, which was recognized
as indicated therein, does not enable foreseeing the future development of that
situation and its potential effect on the Company. For this reason, these
financial statements should be analyzed in the light of those uncertain
circumstances.

                                      117
<PAGE>
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 14, 2005.

(Signed) Antonio Roberto Garces. Chairman.


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, 2004, 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 24, 2005. This
translation consists of 118 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 2004, 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 24 de febrero de 2005. La presente traduccion consta de 118 fojas utiles.

                                      118
<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 point 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 Statement of Financial Condition of Grupo Financiero
Galicia S.A. as of December 31, 2004, 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 complementary Notes 1 to 17, Schedules A, B,
C, E, G and H, Informative Review, the Information required in addition to the
Notes to the Financial Statements by article 68 of the Buenos Aires Stock
Exchange regulations and the Supplementary and Explanatory Statement by the
Board of Directors, as required by the Norms concerning Accounting Documentation
of the Cordoba Stock Exchange Regulations. We have also examined the
Consolidated Statement of Financial Condition of Grupo Financiero Galicia S.A.
as of December 31, 2004 and the Consolidated Income Statement and Consolidated
Statement of Cash Flows for the fiscal year then ended, as well as Notes 1 to
22, which are presented as supplementary information.

II.  SCOPE OF THE EXAMINATION
     ------------------------

We carried out our work in accordance with standards applicable in Argentina to
syndics. These standards require syndics to review the documents detailed in
point I. observing auditing standards applicable to financial statements, and
verify the consistency of the documents examined with the information concerning
corporate decisions, as disclosed in minutes, and evaluate the conformity of
those decisions with the law and the by-laws insofar as concerns formal and
documentary aspects.

For purposes of our professional work in relation to the documents detailed in
point I., we reviewed the work performed by the external auditors, who issued
their report in accordance with auditing standards applicable at the date
thereof, 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

<PAGE>
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, 2004, 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.

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

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

This Supervisory Syndics Committee has evaluated in previous reports situations
that, given the general context generated by the profound changes occurred in
Argentina's economic and exchange policy as from December 2001, may have
affected the normal conduct of the future business activities of the Entity and
its controlled entities, as well as their financing sources and results of
operations. This also applied to the situation of Banco de Galicia y Buenos
Aires S.A. in which the Company holds an equity investment representing 72.07%
of its Assets and 74.91% of its Shareholders' Equity. The global uncertainty
arising from those situations has been fully or partially resolved, being
restricted to the statements made in notes to financial statements and in points
3, 4 and 5 of the external auditors' report. 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. Point 6 of the auditors' report makes reference to these situations.
Consequently, the Bank's financial statements must be analyzed in the light of
these circumstances.

IV.  CONCLUSION

In our opinion, based on the review performed with the scope mentioned in point
II., the attached financial statements have been prepared in accordance with
professional accounting standards applicable in the Autonomous City of Buenos
Aires and CNV regulations, except for the application of valuation, disclosure
and revenue recognition criteria relating to directly and indirectly controlled
entities, as disclosed in the Notes to

<PAGE>
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. Those financial statements give
consideration to all significant facts and circumstances which are known to us.
We have no observations to make in performance of the legality control that is
part of our field of competence.

As regards the Informative Review, the Information required in addition to the
Notes to the Financial Statements and the Supplementary and Explanatory
Statement by the Board of Directors for the fiscal year ended December 31, 2004,
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 attached financial statements and related
inventory stem from accounting records kept, in all formal respects, in
compliance with legal rules in effect 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 those professional
accounting standards, except as mentioned in its report, related to the
application of the Argentine Central Bank rules, which prevail over the
application of professional accounting standards.

Buenos Aires, February 14, 2005
-------------------------------

(Signed) ADOLFO HECTOR MELIAN, 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, 2004, produced in Spanish, a copy of which I have had before
me.

Given and signed in Buenos Aires, Argentina on February 28, 2005. This
translation consists of 3 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 2004, 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 28 de febrero de 2005. La presente traduccion consta de 3 fojas utiles.
<PAGE>
                                AUDITORS' REPORT

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


1.   We have audited the statements of financial condition of Grupo Financiero
     Galicia S.A. as of December 31, 2004 and 2003, 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 supplementary Notes
     1 to 17, 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. We have also audited the consolidated statements of financial
     condition of Grupo Financiero Galicia S.A. as of December 31, 2004 and
     2003, and the consolidated income statements and consolidated statements of
     cash flows for the fiscal years then ended, together with Notes 1 to 22,
     which are presented as supplementary information. The preparation and
     issuance of these financial statements are the responsibility of the
     Company. Our responsibility is to issue an opinion on the financial
     statements based on our audit.

2.   Our examinations were conducted in accordance with auditing standards
     prevailing in Argentina. 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 our opinion.

3.   As mentioned in Note 1 to the financial statements, as a result of the
     economic crisis affecting Argentina, the year under consideration and prior
     years have 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.

<PAGE>
4.   At the date of issue of these financial statements, uncertainty still
     persists which could affect significantly the Company's equity and results,
     in relation to (a) compliance by the Public Sector with its obligations
     towards Grupo Financiero Galicia S.A. subsidiaries and consequently to the
     recoverable value of those assets, which are recorded in its consolidated
     financial statements, at approximately $ 16,312,660 thousand and
     represented by rights, government securities, loans and participations in
     trusts; and (b) the final resolution on the part of the Public Authorities
     regarding the approval and delivery of the government securities and the
     granting of financial assistance to be received by Banco de Galicia y
     Buenos Aires S.A. for the compensation detailed in Note 1 to the financial
     statements, and regarding legal actions filed by depositors of that Entity,
     as well as deposits reimbursed in compliance with court resolutions and
     recorded in Intangible Assets by Banco de Galicia y Buenos Aires S.A., as a
     result of the conversion into pesos of deposits and other liabilities
     established by National Executive Branch Decree 214/02 and supplementary
     rules, as described in Note 1 to the financial statements, and their impact
     on the recoverability of the assets accounted for and the enforcement value
     of related liabilities.

5.   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. (In Provisional Liquidation) is
     subject to a provisional liquidation process. These processes, 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.

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

7.   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.

     The accompanying financial statements are presented on the basis of
     accounting principles generally accepted in Argentina, which may differ
     from the accounting principles generally accepted in jurisdictions other
     than Argentina, where those financial statements are to be used.
<PAGE>
8.   On February 5, 2004, we issued an audit report on Grupo Financiero Galicia
     S.A. financial statements and consolidated financial statements for the
     years ended December 31, 2003 and 2002 with an abstention of opinion in
     view of the uncertain circumstances indicated in paragraphs 4 and 5 of this
     report and other uncertain situations that have been remedied at the date
     hereof, as mentioned in Note 1 to the financial statements, that affected
     Banco de Galicia y Buenos Aires S.A. ability to continue with the normal
     course of its business, and related mainly to the conclusion of the
     restructuring and/or capitalization process involving its foreign currency
     denominated financial debts and debts with the BCRA, which enabled that
     Bank to reschedule the repayment terms thereof and the yield on its assets
     and liabilities and the recoverability of the private sector portfolio
     subject to restructuring at that date. Consequently, our opinion on the
     December 31, 2003 financial statements differs from that originally
     submitted. That report also included certain departures from professional
     accounting standards because of the statement made in point 6. above.

9.   In our opinion, subject to the effect on the financial statements that
     could derive from the adjustments and reclassifications, if any, which
     might be required following resolution of the situations described in
     paragraphs 4. and 5. above:

     a)   the financial statements of Grupo Financiero Galicia S.A. present
          fairly, in all material respects, its financial condition as of
          December 31, 2004 and 2003, the results of its operations, changes in
          shareholders' equity and cash flows for the years then ended, in
          accordance with B.C.R.A. rules and, except as mentioned in point 6.
          above, with professional accounting standards applicable in the
          Autonomous City of Buenos Aires,

     a.   the consolidated financial statements of Grupo Financiero Galicia S.A.
          and its subsidiaries present fairly, in all material respects, their
          consolidated financial condition as of December 31, 2004 and 2003,
          consolidated results of operations and consolidated cash flows for the
          years then ended, in accordance with B.C.R.A. rules and, except as
          mentioned in point 6. above, with professional accounting standards
          applicable in the Autonomous City of Buenos Aires.

10.  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, insofar as concerns our field
          of competence, are in compliance with the provisions of the
          Corporations Law and pertinent resolutions of the C.N.V.

     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 applicable legal rules, which
          maintain the same security and integrity conditions as those
          authorized by the C.N.V.

<PAGE>
     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.

     d)   As of December 31, 2004, Grupo Financiero Galicia S.A.'s debt accrued
          towards the Integrated Pension and Survivors' Benefit System,
          according to the accounting records, amounted to $ 14,918.16, which
          were not yet due at that date.


Autonomous City of Buenos Aires, February 14, 2005.
---------------------------------------------------


        PRICE WATERHOUSE & CO. S.R.L.



                                     (Partner)
----------------------------------------------
         C.P.C.E.C.A.B.A. To. 1 Fo. 17
            Dr. Santiago J. Mignone
          Public Accountant (U.B.A.)
   C.P.C.E. Autonomous City of Buenos Aires
               To. 233 Fo. 237

<PAGE>
                            SPECIAL AUDITORS' REPORT



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


Dear Sirs:

In our capacity as external auditors of Grupo Financiero Galicia S.A.
(hereinafter "the Company"), for purposes of its submission to the National
Securities Commission (CNV) and as required by article 4 -section III.9.1.e) of
General Resolution No. 400/2002 issued by the CNV, we report that the total fee
amount Price Waterhouse & Co. S.R.L., Price Waterhouse & Co. Asesores de
Empresas S.R.L. and PricewaterhouseCoopers Juridico Fiscal S.R.L. (hereinafter
the three companies as a whole "Price Argentina") billed the Company for
professional auditing and related services in the fiscal year ended December 31,
2004 represent:

1.   90% of total fees Price Argentina billed the Company for services in that
     fiscal year;

2.   11% of total fees Price Argentina billed the Company, its controlling,
     controlled and related companies for auditing and related services in that
     fiscal year;

3.   10% of the total fee amount Price Argentina billed the Company, its
     controlling, controlled and related companies for services in that fiscal
     year.

It should be noted that the total fee amount Price Argentina billed the Company
on a consolidated basis with its controlled and related companies for auditing
and related services in the fiscal year ended December 31, 2004 represent 91.44%
of the total fees Price Argentina billed the above-mentioned business group for
services.

<PAGE>
          This special report is issued for the exclusive use by the Company and
          to be submitted to the CNV, and should not be used for any other
          purpose.



Autonomous City of Buenos Aires, February 14, 2005.
---------------------------------------------------



          PRICE WATERHOUSE & CO. S.R.L.



                                          (Partner)
---------------------------------------------------
       C.P.C.E.C.A.B.A. To. 1 Fo. 17
              Dr. Santiago Mignone
           Public Accountant (U.B.A.)
    C.P.C.E. Autonomous City of Buenos Aires
                To. 233 - Fo. 237