Banco Galicia {graphic omitted]

FOR IMMEDIATE RELEASE

Banco de Galicia y Buenos Aires S.A.
Phone (54-11) 6329-6430
Fax (54-11) 6329-6494
www.e-galicia.com

             BANCO DE GALICIA Y BUENOS AIRES S.A. REPORTS EARNINGS
                  FOR THE SECOND QUARTER OF FISCAL YEAR 2003,
                              ENDED JUNE 30, 2003

(Buenos  Aires,  Argentina,  August 11,  2003) - Banco de Galicia y Buenos Aires
S.A. (the "Bank",  Buenos Aires Stock  Exchange:  GALI)  announced its financial
results for the second quarter of FY 2003, ended June 30, 2003.

>>   In the second quarter of FY 2003 the Bank recorded a Ps.48.9  million loss.
     As a result, the loss for the first half of FY 2003 was Ps.89 million.  The
     Bank's  shareholders'  equity  as of June 30,  2003  amounted  to  Ps.1,463
     million.

>>   The Bank  continued  increasing  its deposit market share in the new "free"
     deposit system.  As of June 30, 2003, the Bank's  estimated market share of
     such deposits reached 4.57% and 5.41%,  when deposits of the private sector
     exclusively are considered.

>>   As of the  end of the  quarter,  the  Bank's  in  Argentina  liquid  assets
     represented  70.2% of its  transactional  deposits in the country (compared
     with 63.2% as of March 31, 2003) and 25.6% of its total deposits  (19.7% as
     of March 31, 2003) measured in the same manner.

>>   Allowances for loan losses  represented  100.3% of non-accrual loans at the
     end of the quarter.

>>   Administrative  expenses experienced a significant decrease, as a result of
     the costcutting and expense control  measures  implemented  during FY 2002.
     The coverage of cash  operating  expenses(1)  with income from  services(2)
     reached 87.2%,  and the breakeven  spread(3) before credit risk amounted to
     only 0.76% per annum.

(1)  Administrative expenses minus amortization,  depreciation and restructuring
     charges, plus expenses from services.
(2)  Income from  services  including  income from FX  brokerage  and  excluding
     financial fees.
(3)  Administrative  expenses  minus net  income  from  services(2)  per unit of
     interest-earning assets.
<PAGE>
                                                                   Banco Galicia

NET INCOME FOR THE QUARTER ENDED JUNE 30, 2003

Net  income for the  quarter  showed a Ps.48.9  million  loss,  compared  with a
Ps.40.1 million loss in the previous quarter.

                                                         In pesos
--------------------------------------------------------------------------------
Table I                                  FY 2003   FY 2002    six months ended:
                                         -------   -------   -------------------
Earnings per Share                        2nd Q     2nd Q    06/30/03   06/30/02
--------------------------------------------------------------------------------
Total Average Shares (in thousands)      468,662   468,662   468,662    468,662
Book Value per Share                       3.121    4.831      3.121      4.831
Earnings per Share(1)                    (0.104)  (0.252)    (0.190)    (1.762)
--------------------------------------------------------------------------------
(1)  In accordance  with Argentine  Central Bank's  Communiques "A" 3703 and "A"
     3800,  earnings  per  share  for  the  2nd Q of FY 2002  was  Ps.3.540  and
     Ps.(1.008) for the six-month period ended June 30, 2002.

INFORMATION DISCLOSURE

Beginning March 31, 2002, the  line-by-line  consolidation  of the  consolidated
balance  sheet  of Banco  Galicia  Uruguay  S.A.  ("Galicia  Uruguay")  has been
discontinued.

Between June 30, 2002, and September 30, 2002, the Bank's consolidated financial
statements,  shown in pages 15 and 16, include not only its foreign branches and
Tarjetas Regionales S.A., but also the following companies: Galicia Valores S.A.
Sociedad de Bolsa,  Galicia  Capital Markets S.A.,  Galicia  Factoring y Leasing
S.A.,  Agro  Galicia  S.A.,  Galicia y Buenos  Aires  Securities  (UK) Ltd.  and
Tarjetas  Regionales S.A.'s  subsidiaries.  Beginning the quarter ended December
31, 2002,  Galicia y Buenos Aires Securities (UK) Ltd. was excluded,  since that
company was closed. On January 30, 2003, the New York Branch was closed.

Beginning  with the quarter ended March 31, 2002,  and until  February 2003, the
Bank's  financial  statements  have been  restated  for  inflation  by using the
Wholesale Price Index (IPIM)  published by the National Bureau of Statistics and
Census (INDEC), in accordance with Argentine Central Bank's Communique "A" 3702,
Resolution  No.240/02 of the Argentine  Federation of  Professional  Councils in
Economic  Sciences  and  Resolution   No.415/02  from  the  National  Securities
Commission.  In accordance with the provisions of Decree No.664/03,  on April 8,
2003, the Argentine  Central Bank  established  through its  Communique  "A"3921
that, beginning on March 1, 2003, such methodology was to be discontinued.

The amounts shown in tables and exhibits  were restated in constant  pesos until
February  2003, by using the Wholesale  Price Index (IPIM).  The amounts for the
quarters ended June 30, 2002,  September 30, 2002,  and December 31, 2002,  were
resta ted by using coefficients equal to 1.124, 0.994, and 1.0087, respectively.

In accordance with Argentine professional  accounting rules, the restatement for
inflation is still in force.  However,  given that the IPIM variation during the
period April-June 2003 was a 2.61% decrease,  the effect on the Bank's financial
statements,  as of June 30, 2003, of not having  recognized such index variation
has not been significant.

                                                                               2
<PAGE>
                                                                   Banco Galicia

2nd QUARTER OF FY 2003 RESULTS

The quarter's  loss was,  mainly,  the  consequence  of a negative net financial
income of Ps.50 million, given that administrative  expenses for Ps.99.6 million
and  provisions  for loan losses for Ps.53.8  million  were offset by net income
from  services  for Ps.50.1  million,  income from equity  investments  for 21.7
million and net other income for Ps.82.7 million.

                                                    Percentages
--------------------------------------------------------------------------------
Table II                               FY 2003   FY 2002     Six months ended:
                                       -------   -------   ---------------------
Profitability and Efficiency            2nd Q     2nd Q    30/06/03     30/06/02
--------------------------------------------------------------------------------
Return on Average Assets(*)(1)          (0.94)    (2.26)     (0.84)       (6.24)
Return on Average Shareholders'
  Equity(*)(2)                         (13.24)   (18.57)    (12.20)      (56.90)
Financial Margin(*)(3)                  (1.05)     15.61     (3.62)        11.19
Net Income from Services as a %
  of Administrative Expenses(4)          50.30     15.63      48.38        36.68
--------------------------------------------------------------------------------
(*)  Annualized.
(1)  In accordance  with Argentine  Central Bank's  Communiques "A" 3703 and "A"
     3800,  the  return on  average  assets for the 2nd Q of FY 2002 and for the
     six-month period ended June 30, 2002, was 23.75% and (3.90)%, respectively.
(2)  In accordance  with Argentine  Central Bank's  Communiques "A" 3703 and "A"
     3800, the return on average  shareholders'  equity for the 2nd Q of FY 2002
     and for the six-month period ended June 30, 2002, was 260.64% and (32.53)%,
     respectively.
(3)  Financial Margin:  Financial income minus financial  expenses plus monetary
     loss from financial intermediation,  divided by interest-earning assets. In
     accordance with Argentine Central Bank's Communiques "A" 3703 and "A" 3800,
     the financial  margin for the 2nd Q of FY 2002 and for the six-month period
     ended June 30, 2002, was 38.50 % and 11.19 %, respectively.
(4)  Administrative expenses minus monetary gain from operating expenses.

Net financial  income recorded a Ps.50 million loss,  mainly as a consequence of
the Ps.80.5 million loss from FX quotation  differences  and premiums  (recorded
under "Financial Expenses-Other"), that was mainly due to the revaluation of the
Bank's net asset foreign currency  position,  given the decrease in the exchange
rate during the period,  from  Ps.2.96 to Ps.2.81 per US dollar,  and  partially
offset by Ps.16.4  of income  from FX  brokerage.  The  aforementioned  loss was
partially offset by a Ps.30.5 profit resulting from the net effect of gains from
peso-denominated   financial   transactions   (both   in  the   adjustable   and
nonadjustable by CER segments) and losses from the foreign currency segment. The
latter were due to the fact that, for this segment, the cost of interest-bearing
liabilities  exceeds the yield on  interest-earning  assets.  It should be noted
that most of the liabilities in this segment are currently under a restructuring
process.

The Bank has adhered to the voluntary procedure established by Decree No.739/03,
to  restructure  the  repayment  of  the  financial  assistance  granted  by the
Argentine Central Bank to financial  institutions during the crisis.  Therefore,
beginning  April 30, 2003, such assistance is adjusted by CER and accrues a 3.5%
annual interest rate (up to the  aforementioned  date,  these  liabilities  were
included in the nonadjustable  peso-denominated  segment and accrued an interest
rate  equal to the  Lebac's  monthly  average  yield).  With the  aforementioned
change,  the mismatch of the  CER-adjusted  peso segment has been  significantly
reduced.  (See "Main Regulatory Issues - Financial assistance from the Argentine
Central Bank granted before April 1, 2003").

                                                                               3
<PAGE>
                                                                   Banco Galicia

<TABLE>
<CAPTION>
                                             Average balances in millions of pesos. Yields and rates in annualized nominal %
Table III                                                        FY 2003                                                     FY 2002
Average Balances,                              2nd Q               1st Q               4th Q               3rd Q               2nd Q
  Yield and Rates(*)               Av. B.       Int.   Av. B.       Int.   Av. B.       Int.   Av. B.       Int.    Av. B.      Int.
--------------------------------- -------- ---------- -------- ---------- -------- ---------- -------- ---------- --------- --------
<S>                                <C>          <C>    <C>          <C>    <C>          <C>    <C>         <C>      <C>       <C>
Interest-Earning Assets            19,026       6.42   19,928       5.96   21,331       9.07   22,354      21.14    24,871    34.12
  Government Securities             1,432       4.01    1,620       4.27    2,389       4.78    2,225      13.47     2,034    31.34
  Loans                            10,167      10.67   10,370       9.03   10,770      13.54   10,752      38.40    12,201    57.24
  Other                             7,427       1.06    7,938       2.30    8,172       4.44    9,377       3.16    10,636     8.12
--------------------------------- -------- ---------- -------- ---------- -------- ---------- -------- ---------- --------- --------
Interest-Bearing
 Liabilities                       16,856       6.41   17,264       9.53   18,040      10.50   18,526      24.26    20,220    36.17
  Demand Accounts                     367       3.52      335       5.23      135       6.06      107      36.40        80    20.09
  Savings Accounts                    411       0.71      350       0.95      330       1.16      360       1.12       626     0.83
  Time Deposits and Restructured
   Deposits                         3,277      10.21    3,346      11.18    3,932      13.81    4,184      31.03     4,752    45.14
  Debt Securities                   1,484       6.57    1,652       6.61    1,850      12.57    2,002    (25.68)     2,457     5.94
  Other                            11,317       5.59   11,581       9.85   11,793       9.38   11,873      30.88    12,305    40.65
--------------------------------- -------- ---------- -------- ---------- -------- ---------- -------- ---------- --------- --------
</TABLE>

(*)  Includes the adjustment by CER. Does not include the quotation  differences
     and the monetary result from financial intermediation.

     Annual rates were calculated using a 360-day denominator.

Provisions for loan losses amounted to Ps.53.8  million.  The allowance for loan
losses as a percentage of the private-sector loan portfolio was 45.7%.

Net income from  services  amounted to Ps.50.1  million,  10.4%  higher than the
Ps.45.4 million recorded in the previous quarter.  This favorable  variation was
generated by a higher volume of  transactions,  reflected in the increase of the
different components of such income, combined with lower expenses from services.

                                                 In millions of pesos
--------------------------------------------------------------------------------
Table IV                                     FY 2003                     FY 2002
                                      --------------    ------------------------
Income from Services, Net             2nd Q    1st Q    4th Q    3rd Q     2nd Q
--------------------------------------------------------------------------------
Credit Cards                           20.5     20.0     21.0     25.6      29.1
Deposit Accounts                       16.5     15.8     15.1     18.1      22.0
Insurance                               5.6      5.2      5.2      5.9      8.0
Credit-Related Fees                     3.8      3.1      4.5     10.0      6.1
Foreign Trade                           3.0      3.2      3.5      5.1      3.3
Collections                             1.8      1.6      2.0      2.2      2.6
Utility-Bills Collection Services       1.6      1.5      1.5      1.4      1.7
Mutual Funds                            0.3      0.2      0.3      0.2      0.2
Other                                   7.8      6.9      6.5      4.2      8.7
  Total Income                         60.9     57.5     59.6     72.7     81.7
  Total Expenditures                   10.8     12.1     11.6     17.5     60.1
  Income from Services, Net            50.1     45.4     48.0     55.2     21.6
--------------------------------------------------------------------------------

Administrative  expenses  were  Ps.99.6  million,  only 1.8%  higher than in the
previous  quarter.  Personnel  expenses  amounted to Ps.41.6 million,  showing a
slight  increase from the previous  quarter as a  consequence  of an increase in
meal tickets received by staff. The remaining  administrative  expenses remained
practically unchanged from the previous quarter's level.

                                                                               4
<PAGE>

                                                                   Banco Galicia

Income from equity  investments  was  Ps.21.7  million,  mainly due to the Ps.34
million  profit  from the Bank's  investment  in the four  regional  credit card
companies,  offset by the losses from the Bank's  interests  in Galicia  Capital
Markets S.A. (Ps.4 million) and Tradecom S.A. (Ps.6.2 million).

Net other income amounted to Ps.82.7 million, mainly as a consequence of:
a)   a Ps.63.1 million reversal of part of the reserve  established to cover the
     negative  shareholders' equity of foreign  subsidiaries,  mainly due to the
     gain generated by the revaluation of its short foreign currency position in
     the context of an appreciation of the peso.
b)   a Ps.45 million  reversal of allowances for loan losses,  mainly due to the
     decrease of the exchange rate  (reducing the amounts used to determine such
     allowances) and to a better performance of the loan portfolio.

These profits were partially  offset by the Ps.24.4 million  amortization of the
receivable resulting from the reimbursement of deposits mandated by court orders
("amparos"). The procedure was established by the Argentine Central Bank through
its Communique "A" 3916.

No income tax charge was recorded.

LEVEL OF ACTIVITY

As of June 30, 2003, total assets amounted to Ps.21,084  million while net loans
amounted to Ps.9,252 million.

The total balance of the  Compensatory  and the Hedge Bonds amounted to Ps.6,479
million.  The decrease from the previous  quarter's level was due to the decline
in the exchange rate.

Total gross loans  amounted to Ps.10,477  million as of June 30, 2003,  of which
Ps.7,618 million were Secured Loans (See "Main Regulatory  Issues - Loans to the
Public Sector") and Ps.180 million were other  provincial  loans.  The remaining
Ps.2,679 million were loans to the private sector.  The Bank's loan market share
in the Argentine financial system was 11.78% as of the same date.

                                      In millions of pesos
--------------------------------------------------------------------------------
Table V                                          FY 2003                 FY 2002
                                      ------------------      ------------------
Loans by Type of Borrower              2nd Q       1st Q       4th Q       3rd Q
--------------------------------------------------------------------------------
Large Corporations                     1,036       1,017       1,165       1,130
Middle-Market Companies                1,031         918         776         833
Individuals                              604         782         901         893
Financial Sector                         181         241         134         113
Non-Financial Public Sector            7,618       7,539       7,633       7,729
Other                                      7           9         220         412
  Total Loans                         10,477      10,506      10,829      11,110
Allowances                             1,225       1,261       1,396       1,304
  Total Loans, Net                     9,252       9,245       9,433       9,806
--------------------------------------------------------------------------------

                                                                               5

<PAGE>

                                                                   Banco Galicia

                                                  In millions of pesos
--------------------------------------------------------------------------------
Table VI                                           FY 2003               FY 2002
                                         -----------------     -----------------
Loans by Economic Sector                  2nd Q      1st Q      4th Q      3rd Q
--------------------------------------------------------------------------------
Financial Sector                            181        241        134        113
Services                                  8,253      8,167      8,267      8,304
Agriculture & Livestock                     283        321        389        433
Consumer                                    604        782        901        893
Retail & Wholesale Trade                    226        226        217        241
Construction                                253        254        269        255
Manufacturing                               514        515        573        661
Other                                       163          -         79        210
  Total Loans                            10,477     10,506     10,829     11,110
Allowances                                1,225      1,261      1,396      1,304
  Total Loans, Net                        9,252      9,245      9,433      9,806
--------------------------------------------------------------------------------

When  consolidating  the loan portfolio of the regional  credit card  companies,
total gross loans as of June 30, 2003, amounted to Ps.10,711 million.

As of June 30,  2003,  the Bank's  holdings  of  government  securities  totaled
Ps.1,512  million  while net forward  purchases  amounted to Ps.4  million.  The
decrease  from the  previous  quarter's  level  is  mainly  attributable  to the
appreciation of the peso. Of the Bank's total holdings of government securities,
Ps.827  million  corresponded  to Argentine  Republic  External  Notes  ("Letras
Externas de la Republica Argentina"), Ps.570 million to the Compensatory and the
Hedge  Bonds  received  by the Bank,  and Ps.94  million  to the  Fiscal  Credit
Certificate. (See "Main Regulatory Issues - Government Securities").

Table VII  shows the  Bank's  total  exposure  to the  Argentine  financial  and
non-financial  public sectors.  The quarterly variations are mainly explained by
the  differential  variation of the CER index and of the  exchange  rate used to
adjust the value of the different public -sector assets.

                                                                               6
<PAGE>

                                                                   Banco Galicia

<TABLE>
<CAPTION>
                                                             In millions of pesos
------------------------------------------------------------------------------------------------
Table VII                                               FY 2003                          FY 2002
                                              -----------------     ----------------------------
Exposure to the Argentine Public Sector(*)     2nd Q      1st Q      4th Q      3rd Q      2nd Q
------------------------------------------------------------------------------------------------
<S>                                           <C>        <C>        <C>        <C>        <C>
Government Securities' Net Position            1,515      1,625      1,798      4,219      1,932
  Trading and Investment Accounts                851        926        997      1,062      1,272
  Fiscal Credit Certificate                       94         99        106        102        103
  9% Bond Maturing 2002                            -          -          -        540        557
  Compensatory Bond                              570        600        695      2,515          -
Other Receivables Resulting from
  Financial Brokerage                          6,936      7,241      8,055      6,867     10,865
  Compensatory Bond                            2,363      2,485      2,839      2,695      4,383
  Hedge Bond                                   3,546      3,730      4,260      3,250      5,508
  Galtrust I                                     646        647        685        655        673
  "Special Funds - Former Almafuerte and
    Mendoza Banks"                               344        342        244        240        271
  Financial Trusts - Secured Loans                37         37         27         27         30
Loans                                          7,798      7,696      7,767      7,842      7,990
Miscellaneous Receivables                        172        171        126        124        140
  Secured Loans Granted as Guarantee of the
  FFAEFyS(1) Loan                                172        171        126        124        140
Total                                         16,421     16,733     17,746     19,052     20,927
------------------------------------------------------------------------------------------------
</TABLE>
(*)  Does not include the CER/CVS  difference  and Ps.497 million of receivables
     associated to the  repayment of "amparos"  (of which  Ps.24.4  million were
     amortized  during the quarter in accordance  with Argentine  Central Bank's
     Com."A"3916).
(1)  The  Fiduciary  Fund  for the  Assistance  to  Financial  Institutions  and
     Insurance  Companies.

Equity investments  amounted to Ps.115 million.

The caption "Bank Premises and Equipment,  Miscellaneous and Intangible  Assets"
includes Ps.473 million of net receivables  associated to the  reimbursement  of
deposits mandated by court orders ("amparos").

The Bank's  total  deposits  amounted to  Ps.5,074  million,  of which  Ps.1,101
million  corresponded  to  deposits of  subsidiaries  in the Cayman  Branch.  In
addition,  Ps.411  million  corresponded  to the  principal of the  restructured
deposits that  remained  after the freeing of the  "corralon"  and Ps.79 million
corresponded to restructured  deposits of holders that have exercised the option
to exchange them for bonds in the "Canje II",  which swap has not been completed
yet. (See "Main Regulatory Issues- Deposits")

The Bank's  "free"  deposits  in  Argentina  (deposits  in current  and  savings
accounts and voluntary time deposits) increased by 38.3% in nominal terms during
the quarter.

As of June 30,  2003,  the Bank's  deposit  market  share of the "free"  deposit
system  was  estimated  at 4.57%,  as  compared  with  4.36% at the close of the
previous  quarter and 3.83% a year  before.  Such ratio,  measured by using only
deposits of the private sector, reached 5.41%.

If  restructured  deposits are included,  as of June 30, 2003,  the Bank's total
deposits in the Argentine market represented a 4.44% market share, against 4.36%
at the close of the previous quarter.

                                                                               7
<PAGE>

                                                                   Banco Galicia

--------------------------------------------------------------------------------
Table VIII              06/30/03    03/31/03    12/31/02    09/30/02    06/30/02
Market Share(*)           (%)          (%)         (%)         (%)         (%)
--------------------------------------------------------------------------------
Voluntary Deposits(1)     4.57         4.36        4.36        3.99        3.83
Total Deposits(2)         4.44         4.36        5.26        5.09        4.86
Total Loans              11.78        11.63       11.04       10.84       11.75
--------------------------------------------------------------------------------
(*)  Banco de Galicia y Buenos Aires S.A., only, within the Argentine  financial
     system,  according to the daily information on deposits and loans published
     by the Argentine Central Bank. End-of-period data.
(1)  Deposits held in current and savings accounts and voluntary time deposits.
(2)  As of  December  31,  2002,  includes  restructured  deposits  swapped  for
     National Government Bonds in the "Canje I".
     As of March 31 and June 30, 2003, includes  restructured  deposits tendered
     in the "Canje II". Only principal.
     CEDROs do not include the CER  adjustment  and  restructured  deposits with
     legal actions do not include the exchange rate adjustment.

As of June 30, 2003,  financial  assistance from the Argentine  Central Bank for
liquidity support amounted to Ps.5,580 million.

The Bank's debt with the Deposit  Insurance  Fund and the Fiduciary Fund for the
Assistance to Financial Institutions and Insurance Companies,  originated in the
"Galicia  Capitalization  and Liquidity  Plan",  amounted to Ps.181  million and
Ps.90  million,  respectively,  as of June 30, 2003.  Both amounts were recorded
under "Other Liabilities-Other". This caption also includes the advance from the
Argentine  Central  Bank for the  subscription  of the Hedge  Bond for  Ps.2,555
million, including principal adjustment by CER and interest accrued.

As of June 30, 2003, the Bank had 930.4 thousand  deposit  accounts,  9.7% lower
than in the prior quarter. This decrease was due to the closing of accounts that
had been inactive during the previous months.

ASSET QUALITY

As of June 30,  2003,  the Bank's  non-accrual  to total loans ratio was 11.65%,
lower than 11.95% recorded as of the close of the previous quarter.  Considering
only the private-sector loan portfolio, this ratio amounted to 45.6%. This level
of  non-accrual  loans  continues  to reflect  both the events  occurred  in the
Argentine economy since the end of the  Convertibility  regime and the impact of
the various government measures aimed at restructuring private-sector debts.

The allowance for loan losses as a percentage of total loans increased to 11.69%
as of June 30,  2003,  from  10.82% as of June 30,  2002.  The  coverage  of the
non-accrual  loan portfolio with  allowances for loan losses reached 100.33% and
the coverage with guarantees  59.3%. The combined  coverage of non-accrual loans
with allowances and guarantees was 159.63%.

Loans  classified  under  category  "2.b" of the Argentine  Central  Bank's loan
classification,  which comprises portfolios that not being non-performing are in
the process of being  restructured,  amounted to Ps.176.5 million as of June 30,
2003 and the coverage with  allowances for loan losses of the  non-accrual  loan
portfolio plus the portfolio in category "2.b" was 87.63%.

                                                                               8
<PAGE>

                                                                   Banco Galicia

<TABLE>
<CAPTION>
                                                           In millions of pesos, except percentages
-------------------------------------------------------------------------------------------------------
Table IX                                                         FY 2003                        FY 2002
                                                       -----------------     --------------------------
Loan Portfolio Quality                                  2nd Q      1st Q      4th Q     3rd Q     2nd Q
-------------------------------------------------------------------------------------------------------
<S>                                            <C>     <C>        <C>        <C>        <C>       <C>
Non-Accrual Loans (*)                                   1,221      1,256      1,294     1,317     1,307
  - With Preferred Guarantees                             553        565        566       572       553
  - With Others Guarantees                                171        169        171       131       118
  - Without Guarantees                                    497        522        557       614       636
Allowances for Loan Losses                              1,225      1,261      1,396     1,304     1,303
Non-Accrual Loans to Total Loans (%)                    11.65      11.95      11.95     11.85     10.85
Allowance for Loan Losses to Total Loans (%)            11.69      12.00      12.89     11.74     10.82
Allowance for Loan Losses to Non-Accrual Loans (%)     100.33     100.40     107.88     99.01     99.69
Non-Accrual Loans with Guarantees to
  Non -Accrual Loans (%)                                59.30      58.44      56.96     53.38     51.34
-------------------------------------------------------------------------------------------------------
</TABLE>
(*)  The non-accrual  portfolio  includes loans  classified  under the following
     categories of the Argentine Central Bank classification:  With Problems and
     Defective Fulfillment,  Difficulty in Recovery and High Risk of Insolvency,
     Uncollectible and Uncollectible due to Technical Reasons.

During the quarter,  Ps.37  million were charged off against the  allowance  for
loan  losses  and a Ps.3  million  direct  charge to the  income  statement  was
recorded for loans deemed uncollectible.

                                                    In millions of pesos
-------------------------------------------------------------------------------
Table X                                          FY 2003               FY 2002
                                            ------------  ---------------------
Consolidated Analysis of Loan Loss
  Experience                                2nd Q  1st Q  4th Q  3rd Q   2nd Q
Allowance for Loan Losses at the Beginning
  of the Quarter                            1,261  1,396  1,304  1,303     799
Changes in the Allowance for Loan Losses
  Provisions Charged to Income                 47     39    108    200     825
  Provisions Reverted                        (45)   (80)      -      -       -
  Charge Offs                                (37)   (79)   (47)   (33)    (46)
  Monetary Effect                             (1)   (15)     31  (166)   (275)
Allowance for Loan Losses at Quarter End    1,225  1,261  1,396  1,304   1,303
Charge to the Income Statement
  Provisions Charged to Income                 47     39    108    200     825
  Direct Charge Offs                            3      4      2      4       5
  Bad Debts Recovered                         (9)    (6)    (6)    (6)     (6)
  Recoveries of Provisions(*)                (45)   (80)      -      -       -
Net Charge to the Income Statement            (4)   (43)    104    198     824
-------------------------------------------------------------------------------
(*)  Recorded under "Net Other Income".

When consolidating the regional credit-card  companies,  non-accrual loans as of
June 30, 2003, amounted to Ps.1,260 million,  representing 11.76% of total loans
and showing an  improvement  of the asset  quality of these  companies  from the
previous quarter. The coverage of the non-accrual loan portfolio with allowances
for loan  losses  was 98.81%  and the  combined  coverage  with  allowances  and
guarantees was 156.27%.

                                                                               9
<PAGE>

                                                                   Banco Galicia

In the  following  table,  asset quality  information  is also shown in terms of
"total  credit".  This table does not include the loan portfolio of the regional
credit-card  companies.  "Total  credit" is defined as loans,  certain  accounts
included in "Other Receivables Resulting from Financial Brokerage"  representing
credit  transactions,  assets under  financial  leases,  guarantees  granted and
unused balances of loans granted.

<TABLE>
<CAPTION>
                                                        In millions of pesos, except percentages
---------------------------------------------------------------------------------------------------
Table XI                                                      FY 2003                       FY 2002
                                                      ---------------     -------------------------
Asset Quality - Total Credit(1)                       2nd Q     1st Q     4th Q     3rd Q     2nd Q
---------------------------------------------------------------------------------------------------
<S>                  <C>                              <C>       <C>       <C>       <C>       <C>
Non-Accrual Portfolio(*)                              1,379     1,413     1,464     1,372     1,381
  - With Preferred Guarantees                           601       606       609       572       573
  - With Other Guarantees                               198       197       203       134       119
  - Without Guarantees                                  580       610       652       666       689
Allowance for Credit Losses                           1,291     1,328     1,461     1,368     1,355
Non-Accrual Portfolio to Total Portfolio (%)          11.33     11.56     11.26     10.28      9.54
Allowance for Credit Losses to Total Portfolio (%)    10.61     10.86     11.24     10.25      9.37
Allowance for Credit Losses to Non-Accrual
  Portfolio                                           93.62     93.98     99.80     99.71     98.12
Non-Accrual Portfolio with Guarantees
  to Non-Accrual Portfolio (%)                        57.94     56.83     55.46     51.46     50.11
---------------------------------------------------------------------------------------------------
</TABLE>
(1)  As of June 30,  2003,  Includes  the  Galtrust 1 Financial  Trust (loans to
     provincial  governments  securitized),  the  Galtrust  II,  III,  IV  and V
     financial trusts (mortgage loans  securitized),  Secured Loans and mortgage
     loans securitized, for a total amount of Ps.800 million.
(*)  Includes credits  classified under the categories  mentioned in the note to
     Table IX.

CAPITALIZATION AND LIQUIDITY

Due to the  changes  that  occurred  in the  financial  system's  situation  and
activities,  which significantly affected the variables for the determination of
minimum capital  requirements,  through its Communiques "A"3599 and "A"3604, the
Argentine Central Bank had suspended the presentation by financial  institutions
of the information  related to minimum capital.  Through its Communique "A"3959,
on May 30, 2003, the Argentine Central Bank issued new minimum capital rules. In
addition,  Communique  "A"  3962  established  May  1,  2003,  as  the  date  of
presentation  of the  minimum  capital  information  regime  to which  financial
institutions   are  subject   under  the  new  rules.   (See  "Main   Regulatory
Issues-Minimum Capital Requirements").

As of June 30, 2003,  the liquid  assets of the Bank's Head Office (cash and due
from banks,  Lebac,  special escrow  accounts in the Argentine  Central Bank and
overnight deposits in banks) represented:

a)   70.2% of the Bank's transactional  deposits in Argentina (63.2% as of March
     31, 2003);
b)   32.4%  of its  total  deposits,  excluding  restructured  deposits,  in the
     country (30.8% as of March 31, 2003) and
c)   25.6% of its total deposits  measured in the same manner (19.7% as of March
     31, 2003).

REGIONAL CREDIT-CARD COMPANIES

Information on the regional credit-card companies is included on page 14 of this
press release.

Income from equity  investments  in the four regional  credit-card  companies in
which  the Bank  holds  majority  interests  amounted  to Ps.34  million  in the
quarter.  This result was mainly a  consequence  of the  positive  effect of the
appreciation of the peso.

                                                                              10
<PAGE>

As of June 30, 2003,  total assets of the four  regional  credit-card  companies
amounted to Ps.637.2 million.

Total loans  amounted  to Ps.455.8  million,  total  allowances  for loan losses
(including other non-allocated allowances) to Ps.27 million, and the non-accrual
loan portfolio to Ps.38.9  million.  As a consequence,  the ratio of non-accrual
loans to total loans was 8.53%, as compared with 12.86% in the previous quarter.
The coverage of non-accrual loans with allowances for loan losses increased from
63.14%, as of March 31, 2003, to 69.41% as of June 30, 2003.

                                                                              11
<PAGE>

             SELECTED FINANCIAL INFORMATION - CONSOLIDATED DATA (*)

<TABLE>
<CAPTION>
                                                                                    In millions of pesos
------------------------------------------------------------------------------------------------------------------------------------
                                                               06/30/03        03/31/03         12/31/02       09/30/02     06/30/02
------------------------------------------------------------------------------------------------------------------------------------
<S>                                                            <C>             <C>              <C>            <C>          <C>
CASH AND DUE FROM BANKS                                           911.0           553.1            525.2          433.3        532.5
  -Cash                                                           292.6           236.6            232.7          175.8        144.6
  -Banks and Correspondents                                       618.4           316.5            292.5          257.5        387.9
GOVERNMENT AND CORPORATE SECURITIES                             1,511.6         1,621.5          1,794.4        4,226.5      2,227.5
LOANS                                                           9,252.3         9,245.2          9,432.6        9,805.5     10,747.8
OTHER RECEIVABLES RESULTING FROM FINANCIAL BROKERAGE            7,527.9         7,811.4          8,994.3        7,881.2     11,906.3
EQUITY IN OTHER COMPANIES                                         114.8           116.4            129.9          118.6        128.2
BANK PREMISES AND EQUIPMENT, MISCELLANEOUS AND                  1,380.0         1,416.3            987.4        1,028.8      1,124.7
INTANGIBLE ASSETS
OTHER ASSETS                                                      386.7           358.2            284.6          307.2        368.1
TOTAL ASSETS                                                   21,084.3        21,122.1         22,148.4       23,801.1     27,035.1
DEPOSITS                                                        5,074.0         4,798.5          4,770.2        5,629.4      6,060.8
- Non-Financial Public Sector                                       4.9             3.0              7.9            3.6          5.3
- Financial Sector                                                  2.4             2.9              2.9            2.1          1.5
- Non-Financial Private Sector and Residents Abroad             5,066.7         4,792.6          4,759.4        5,623.7      6,054.0
  - Current Accounts                                              921.6           741.6            750.5          876.1        856.8
  - Savings Accounts                                              500.1           379.9            345.7          329.2        485.8
  - Time Deposits                                               2,590.9         2,120.6          2,213.5        1,785.6      1,863.8
  - Investment Accounts                                             1.0             0.0              0.0            0.0          0.0
  - Other                                                         765.5         1,135.6          1,044.7        1,912.2      2,306.3
  - Accrued Interest, Adjustments and Quotation                   287.6           414.9            405.0          720.6        541.3
Differences Payable
BANKS AND INTERNATIONAL ENTITIES                                2,807.3         2,971.1          3,388.9        3,736.1      4,492.0
NEGOTIABLE OBLIGATIONS                                          1,461.8         1,542.4          1,766.1        1,928.2      1,728.4
OTHER LIABILITIES                                              10,278.4        10,298.5         10,671.5       10,580.2     12,489.6
  - Financial Assistance from the Argentine Central             5,580.0         5,564.5          5,449.9        5,303.6      5,316.6
Bank
  - Other                                                       4,698.4         4,734.0          5,221.6        5,276.6      7,173.0
TOTAL LIABILITIES                                              19,621.5        19,610.5         20,596.7       21,873.9     24,770.8
SHAREHOLDERS' EQUITY                                            1,462.8         1,511.6          1,551.7        1,927.2      2,264.3
DOLLAR-DENOMINATED ASSETS & LIABILITIES
- Loans                                                           326.0           410.7            451.8          695.8        958.1
- Deposits                                                      1,434.7         1,393.5          1,568.9        1,688.3      1,915.1
- Assets                                                        8,024.4         8,462.1          9,681.2       10,651.8     12,746.0
- Liabilities                                                   6,374.0         6,572.0          7,456.1        8,174.1     10,002.3
MUTUAL FUNDS (**)                                                  85.1            66.3             62.8           64.8         85.8
PHYSICAL DATA (NUMBER)
  Personnel                                                       3,874           3,917            4,066          5,119        5,718
  Branches                                                          227             227              227            243          283
  Galicia Ahora Points of Sale                                        -               -                -              -          104
  Customer Deposit Accounts                                     930,404       1,030,576        1,038,119      1,053,606    1,216,172
INFLATION AND EXCHANGE RATE
  Retail Price Index (%)(***)                                    (0.42)            2.49            1.66            7.03        18.97
  Wholesale Price Index (IPIM)(%)(***)                           (2.61)            0.25           (1.47)          13.08        48.14
  CER Coefficient (%)(***)                                         0.44            2.05            2.46            9.77        19.22
  Exchange Rate ($ per US$)(****)                                2.8075          2.9625           3.3630         3.7267       3.8000
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
(*)       Banco de Galicia y Buenos Aires S.A. and Tarjetas Regionales S.A.
(**)      Market value of the FIMA mutual funds units under custody.
(***)     Variation within the quarter.
(****)    As of the last working day of the quarter.

                                                                              12
<PAGE>

                                                                   Banco Galicia

             SELECTED FINANCIAL INFORMATION - CONSOLIDATED DATA (*)

<TABLE>
<CAPTION>
                                                             In millions of pesos
-------------------------------------------------------------------------------------------------
Quarter ended:                                06/30/03   03/31/03  12/31/02   09/30/02   06/30/02
-------------------------------------------------------------------------------------------------
<S>                                            <C>       <C>        <C>       <C>         <C>
FINANCIAL INCOME                                305.1     605.2      56.7     1,376.5     2,563.9
- Interest on Cash and Due from Banks               -         -       0.2         0.3         0.1
- Interest on Loans to the Financial Sector      34.1      31.1      27.8        34.6        17.5
- Interest on Overdrafts                         16.1      15.9      23.9        33.7        50.7
- Interest on Notes                              35.9      31.6      75.0        16.6        14.4
- Interest on Mortgage Loans                     36.7      15.9      22.2        11.1        17.0
- Interest on Pledge Loans                        6.2       0.6     (4.0)         2.1        12.3
- Interest on Credit -Card Loans                 11.0      10.9      12.1        15.1        27.4
- Interest on Other Loans                         6.7       5.7      13.7        22.4        22.2
- On Other Receivables Resulting from
    Financial Brokerage                          16.6      34.0       6.4       200.2       223.3
- Net Income from Government and Corporate
    Securities                                   19.8      27.3      41.5        51.9        71.2
- Net Income from Secured Loans - Decree
    No.1387/01                                   60.5      34.1    (53.6)        74.1        96.1
- Adjustment by CER                              57.9     394.8     280.3       885.5     1,562.7
- Other                                           3.6       3.3   (388.8)        28.9       449.0
FINANCIAL EXPENSES                              355.1     894.9     458.7     1,298.9     1,051.7
- Interest on Current-Account Deposits            3.2       4.4       2.1         9.8         3.9
- Interest on Savings-Account Deposits            0.6       0.7       0.7         0.6         0.9
- Interest on Time Deposits                      73.4      62.2      78.4        77.1        46.5
- Interest on Loans from the Financial Sector     2.1       1.8       1.6         3.0           -
- For Other Liabilities Resulting from
  Financial Brokerage                           107.0     121.5     193.0       663.6       603.0
- Other Interest                                 70.3      79.9     117.1       100.3       135.5
- Net Income from Options                           -         -         -         0.3           -
- Adjustment by CER                              13.6     140.8      52.7       426.8       942.4
- Other                                          84.9     483.6      13.1        17.4     (680.5)
NET FINANCIAL INCOME                           (50.0)   (289.7)   (402.0)        77.6     1,512.2
PROVISIONS FOR LOAN LOSSES                       53.8      44.2     107.5       212.9       839.4
INCOME FROM SERVICES, NET                        50.1      45.4      48.0        55.2        21.6
MONETARY LOSS FROM FINANCIAL INTERMEDIATION         -    (13.3)     136.3     (451.6)     (541.8)
ADMINISTRATIVE EXPENSES                          99.6      97.9     206.7       179.6       146.7
- Personnel Expenses                             41.6      40.9     131.0       106.3        68.5
- Directors' and Syndics' Fees                    0.1       0.2       0.3         0.1         0.5
- Other Fees                                      2.3       1.1       4.9         3.5         3.4
- Advertising and Publicity                       1.6       1.8       4.0         1.5         1.6
- Taxes                                           3.4       3.6       4.3         3.8         6.3
- Other Operating Expenses                       44.5      45.1      56.1        58.0        60.0
- Other                                           6.1       5.2       6.1         6.4         6.4
MONETARY GAIN FROM OPERATING EXPENSES               -       0.1     (0.3)         1.8         8.5
MINORITY INTEREST                                   -         -   (118.4)         1.7        36.1
INCOME FROM EQUITY INVESTMENTS                   21.7    (12.6)      55.8         7.7       440.7
NET OTHER INCOME                                 82.7     363.0     225.4       139.2     (638.7)
MONETARY GAIN (LOSS) ON OTHER TRANSACTIONS          -       9.1    (17.5)       185.9        31.7
INCOME TAX                                          -         -    (11.5)         2.7         2.4
NET INCOME BEFORE THE ABSORPTION                (48.9)   (40.1)   (375.4)     (377.7)     (118.2)
ABSORPTION SUBJECT TO THE APPROVAL OF THE
  ANNUAL SHAREHOLDERS MEETING                        -        -         -        40.6     1,777.1
  - With Retained Earnings                           -        -         -           -       353.7
  - With Unrealized Valuation Difference             -        -         -        40.6     1,423.4
NET INCOME AFTER THE ABSORPTION                 (48.9)   (40.1)   (375.4)     (337.1)     1,658.9
--------------------------------------------------------------------------------------------------
</TABLE>

(*) Banco de Galicia y Buenos Aires S.A. and Tarjetas Regionales S.A.

                                                                              13

<PAGE>

                                                                   Banco Galicia

                           TARJETAS REGIONALES S.A. -
    CONSOLIDATED FINANCIAL STATEMENTS AS OF MARCH 31, 2003 AND JUNE 30, 2003(*)

<TABLE>
<CAPTION>
                                                                     In millions of pesos
---------------------------------------------------------------------------------------------------------------------------
                                               Quarter ended March 31, 2003                 Quarter ended June 30,2003
                                       ------------------------------------------------------------------------------------
                                         Tarjeras T.R. SA              T.R. SA Tarjetas T.R. SA                     T.R. SA
                                           (***)      (**) Eliminations Consolidated  (***) (**) Eliminations  Consolidated
---------------------------------------------------------------------------------------------------------------------------
<S>                                       <C>        <C>      <C>     <C>        <C>      <C>          <C>         <C>
ASSETS
--------------------------------------
Cash and Due from Banks                         11.7                      11.7       15.5                              15.5
 Gross Loans                                   396.5                     396.5      455.8                             455.8
 (Allowance for Loan Losses)                   (25.0)                    (25.0)     (19.8)                            (19.8)
Net Loans                                      371.5                     371.5      436.0                             436.0
Other Receivables Resulting from
Financial Brokerage                             92.7             (4.4)    88.3       87.7                              87.7
Equity in Other Companies                        0.5     1.3     (1.8)     0.0        0.5     1.5           (1.9)       0.1
Bank Premises and Equipment,
 Miscellaneous and Intangible Assets            34.6    52.0              86.6       30.3    49.6                      79.9
Other Assets                                    58.3     0.3              58.6       67.2     0.4           (4.9)      62.7
Total Assets                                   569.3    53.6     (6.2)   616.7      637.2    51.5           (6.8)     681.9
---------------------------------------------------------------------------------------------------------------------------
LIABILITIES
--------------------------------------
Banks and Local and International
Entities                                       200.2     3.7     (3.7)   200.2      193.3     3.7           (3.7)     193.3
Debt Securities                                100.1                     100.1       83.1                              83.1
Other Liabilities                              391.1   114.0   (113.9)   391.2      441.3    80.6          (81.1)     440.8
Total Liabilities                              691.4   117.7   (117.6)   691.5      717.7    84.3          (84.8)     717.2
Minority Interests                              (0.5)           (10.2)   (10.7)      (0.5)                  (2.0)      (2.5)
Total Liabilities + Minority Interests         690.9   117.7   (127.8)   680.8      717.2    84.3          (86.8)     714.7
Shareholders' Equity                          (121.6)  (64.1)            (64.1)     (80.0)  (32.8)                    (32.8)
Total Liabilities + Shareholders'
 Equity + Minority Interests                   569.3    53.6             616.7      637.2    51.5                     681.9
---------------------------------------------------------------------------------------------------------------------------
INCOME STATEMENT
--------------------------------------
Financial Income                                62.9             (0.2)    62.7       27.3                   (0.2)      27.1
Financial Expenses                              34.4     0.2     (0.2)    34.4       13.8     0.2           (0.2)      13.8
Gross Brokerage Margin                          28.5    (0.2)     0.0     28.3       13.5    (0.2)           0.0       13.3
Provision for Loan Losses                       15.0                      15.0       10.4                              10.4
Income from Services, Net                       34.7                      34.7       38.4                              38.4
Administrative Expenses                         21.9     0.1              22.0       26.3     0.2                      26.5
Minority Interests                                               (5.3)    (5.3)                             (8.3)      (8.3)
Income from Equity Investments                   3.3    (0.5)    (2.8)     0.0        1.7    34.0          (35.7)       0.0
Net Other Income                               (11.8)   (2.1)     0.2    (13.7)      16.9    (2.3)          (0.2)      14.4
Monetary Gain (Loss) on Other
 Transactions                                    0.5                       0.5        0.0                               0.0
Income Tax                                      10.4                      10.4      (10.4)                            (10.4)
---------------------------------------------------------------------------------------------------------------------------
Net Income                                       7.9    (2.9)    (7.9)    (2.9)      44.2    31.3          (44.2)      31.3
---------------------------------------------------------------------------------------------------------------------------
ASSET QUALITY (LOANS)
--------------------------------------
On-Balance Sheet Loans                         396.5                                455.8
Non-Accrual Loans                               51.0                                 38.9
Allowance for Loan Losses                       32.2                                 27.0
Charge Offs                                    (23.3)                               (24.0)
Non-Accrual Loans to Total Loans (%)            12.86                                8.53

Allowance for Loan Losses to
  Non-Accrual Loans (%)                         63.14                               69.41
---------------------------------------------------------------------------------------------------------------------------
</TABLE>
(*)       Prepared  in  accordance  with  Argentine  Central  Bank  regulations.
          Tarjetas Regionales S.A.  consolidated with subsidiaries in accordance
          with Art. 33 - Law 19550

(**)      T.R. SA = Tarjetas Regionales S.A.
(***)     Tarjetas = Tarjeta Naranja S.A. + Tarjeta Comfiar S.A. + Tarjetas del
          Mar S.A.  Interests (%):  Tarjeta  Naranja S.A. 80%,  Tarjeta  Comfiar
          S.A.=60%,  Tarjetas  Cuyanas  S.A.=60%,  Tarjetas  del Mar  S.A.  100%
          Tarjeta Naranja S.A. shares 40% of Tar]eta Comfiar S.A.

                                                                              14
<PAGE>

                                                                   Banco Galicia

             SELECTED FINANCIAL INFORMATION - CONSOLIDATED DATA (*)
<TABLE>
<CAPTION>
                                                                                        In millions of pesos
------------------------------------------------------------------------------------------------------------------------------------
                                                                06/30/03        03/31/03        12/31/02      09/30/02     06/30/02
------------------------------------------------------------------------------------------------------------------------------------
<S>                                                            <C>              <C>           <C>            <C>           <C>
CASH AND DUE FROM BANKS                                           926.7            566.9         541.4          452.0         568.5
 -Cash                                                            298.7            245.0         239.9          191.4         171.0
 -Banks and Correspondents                                        628.0            321.9         301.5          260.6         397.5
GOVERNMENT AND CORPORATE SECURITIES                             1,518.7          1,640.1       1,825.1        4,322.0       2,278.2
LOANS                                                           9,450.6          9,379.4       9,529.3        9,873.8      10,847.4
OTHER RECEIVABLES RESULTING FROM
 FINANCIAL BROKERAGE                                            7,566.1          7,917.3       9,090.2        7,897.1      11,949.4
EQUITY IN OTHER COMPANIES                                          98.4             95.9         106.6           90.1          93.9
BANK PREMISES AND EQUIPMENT,
 MISCELLANEOUS AND INTANGIBLE ASSETS                            1,411.3          1,452.1       1,025.8        1,069.3       1,183.8
OTHER ASSETS                                                      448.4            404.6         343.0          366.6         408.8
TOTAL ASSETS                                                   21,420.2         21,456.3      22,461.4       24,070.9      27,330.0
DEPOSITS                                                        5,062.8          4,787.6       4,759.2        5,612.2       6,037.4
- Non-Financial Public Sector                                       4.9              3.1           7.9            3.5           5.3
- Financial Sector                                                  2.4              2.9           2.9            2.1           1.5
- Non-Financial Private Sector and Residents Abroad             5,055.5          4,781.6       4,748.4        5,606.6       6,030.6
 - Current Accounts                                               918.6            739.2         740.3          862.1         836.6
 - Savings Accounts                                               500.1            379.9         345.7          329.2         485.0
 - Time Deposits                                                2,582.7          2,112.0       2,212.8        1,782.6       1,861.4
 - Investment Accounts                                              1.0              -             -              -             -
 - Other                                                          765.5          1,135.6       1,044.7        1,912.2       2,306.3
 - Accrued Interest, Adjustments and Quotation
    Differences Payable                                           287.6            414.9         404.9          720.5         541.3
BANKS AND INTERNATIONAL ENTITIES                                2,804.1          2,968.1       3,385.9        3,732.8       4,492.2
NEGOTIABLE OBLIGATIONS                                          1,545.0          1,642.5       1,895.2        2,069.9       1,927.4
OTHER LIABILITIES                                              10,547.7         10,556.9      10,885.1       10,761.5      12,645.7
 - Financial Assistance from the Argentine Central Bank         5,580.0          5,564.5       5,449.9        5,303.6       5,316.6
 - Other                                                        4,967.7          4,992.4       5,435.2        5,457.9       7,329.1
MINORITY INTERESTS                                                 (2.2)           (10.4)        (15.7)         (32.7)        (37.0)
TOTAL LIABILITIES                                              19,957.4         19,944.7      20,909.7       22,143.7      25,065.7
SHAREHOLDERS' EQUITY                                            1,462.8          1,511.6       1,551.7        1,927.2       2,264.3
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>

(*)  Banco  de  Galicia  y  Buenos  Aires  S.A.,  consolidated  with  subsidiary
     companies (Art.33 - Law 19550).

                                                                              15
<PAGE>

                                                                   Banco Galicia

             SELECTED FINANCIAL INFORMATION - CONSOLIDATED DATA (*)

<TABLE>
<CAPTION>
                                                                                        In millions of pesos
------------------------------------------------------------------------------------------------------------------------------------
Quarter ended:                                                 06/30/03        03/31/03      12/31/02         09/30/02      06/30/02
------------------------------------------------------------------------------------------------------------------------------------
<S>                                                            <C>              <C>           <C>            <C>           <C>
FINANCIAL INCOME                                                  285.8            662.9         340.1        1,172.4       2,582.8
- Interest on Cash and Due from Banks                               -                -             0.2            0.3           0.1
- Interest on Loans to the Financial Sector                        34.2             31.0          27.8           34.6          17.5
- Interest on Overdrafts                                           10.0             12.0          87.2          (39.7)         57.5
- Interest on Notes                                                36.1             30.6          75.7           14.1          13.1
- Interest on Mortgage Loans                                       36.7             15.9          22.2           11.1          17.0
- Interest on Pledge Loans                                          6.2              0.6          (4.0)           2.1          12.3
- Interest on Credit -Card Loans                                   31.3             29.9          29.5           38.5          26.6
- Interest on Other Loans                                           6.7              5.7          13.7           22.4          22.2
- On Other Receivables Resulting from Financial Brokerage          17.0             34.1           6.7          197.8         223.3
- Net Income from Government and Corporate Securities              23.0             33.5          51.8           68.2          82.8
- Net Income from Secured Loans - Decree No.1387/01                60.5             34.2         (53.4)          74.1          96.2
- Adjustment by CER                                                57.9            394.8         284.1          884.4       1,559.6
- Other                                                           (33.8)            40.6        (201.4)        (135.5)        454.6
FINANCIAL EXPENSES                                                322.2            925.8         625.7        1,088.6       1,007.1
- Interest on Current-Accounts Deposits                             3.2              4.4           2.1            9.8           3.9
- Interest on Savings-Accounts Deposits                             0.6              0.7           0.7            0.6           0.9
- Interest on Time Deposits                                        73.3             62.2          78.4           77.1          46.5
- Interest on Loans from the Financial Sector                       1.5              1.8          13.6           (8.6)          0.2
- Other Interest                                                  107.0            121.5         193.0          663.6         603.0
- For Other Liabilities Resulting from Financial Brokerage         79.4             87.1         267.6           67.8         124.6
- Net Income from Options                                           -                -             -              0.3           -
- Adjustment by CER                                                13.6            140.8          56.8          423.8         944.3
- Other                                                            43.6            507.3          13.5         (145.8)       (716.3)
GROSS BROKERAGE MARGIN                                            (36.4)          (262.9)       (285.6)          83.8       1,575.7
PROVISIONS FOR LOAN LOSSES                                         64.3             59.2         128.5          232.6         863.6
INCOME FROM SERVICES, NET                                          89.0             80.3          79.2           82.3          53.0
MONETARY LOSS FROM FINANCIAL
 INTERMEDIATION                                                     -              (13.4)        136.4         (470.4)       (539.9)
ADMINISTRATIVE EXPENSES                                           127.4            121.3         227.9          204.3         177.7
- Personnel Expenses                                               52.7             51.6         140.0          117.3          82.4
- Directors' and Syndics' Fees                                      0.3              0.4           0.4            0.1           0.5
- Other Fees                                                        2.4              1.5           6.1            3.5           4.2
- Advertising and Publicity                                         2.8              2.8           4.8            2.3           2.6
- Taxes                                                             6.2              5.9           6.3            7.5          10.1
- Other Operating Expenses                                         53.7             51.7          61.9           65.3          68.1
- Other                                                             9.3              7.4           8.4            8.3           9.8
MONETARY GAIN FROM OPERATING EXPENSES                               -                -            (0.3)           1.8           8.5
MINORITY INTERESTS                                                 (8.2)            (5.3)       (127.1)          (5.1)         68.6
INCOME FROM EQUITY INVESTMENTS                                     (7.4)            (9.1)         17.9           (1.3)        570.7
NET OTHER INCOME                                                   95.7            352.9         225.5          125.1        (665.9)
MONETARY GAIN (LOSS) ON OTHER
 TRANSACTIONS                                                      (0.3)             8.3         (77.1)         222.8        (121.0)
INCOME TAX                                                        (10.4)            10.4         (12.1)         (20.2)         26.6
NET INCOME BEFORE THE ABSORPTION                                  (48.9)           (40.1)       (375.4)        (377.7)       (118.2)
ABSORPTION SUBJECT TO THE APPROVAL OF
 THE ANNUAL SHAREHOLDERS MEETING                                    -                -             -             40.6       1,777.1
- With Retained Earnings                                            -                -             -              -           353.7
- With Unrealized Valuation Difference                              -                -             -             40.6       1,423.4
NET INCOME AFTER THE ABSORPTION                                   (48.9)           (40.1)       (375.4)        (337.1)      1,658.9
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
(*)  Banco  de  Galicia  y  Buenos  Aires  S.A.,  consolidated  with  subsidiary
     companies (Art.33 - Law 19550).

                                                                              16
<PAGE>

                                                                   Banco Galicia

THE BANK

General

In 2003,  the Bank  continues  with its  strategy  directed at  establishing  an
operation  more  focused than in the past on the  generation  of fees and on the
provision of transactional products and services, regaining deposit market share
and maintaining high liquidity levels, and with a strict policy of cost control.

In the  first  two  quarters  of 2003 the  full  impact  of the  cost  reduction
initiatives implemented in the second half of FY 2002 was evident.

At the same time,  the Bank's  operations  during the quarter showed a favorable
course in the context of an improvement of the general economic environment. The
Bank's total deposits  increased at an annualized  rate of 25%,  higher than the
growth  of  the  financial  system  as a  whole.  Outstanding  loans  increased,
especially those to small and medium-sized  companies (PYMEs), and asset quality
showed a favorable variation.  In addition,  income from services increased from
the previous quarter's level in most of its components. Likewise the coverage of
cash operating expenses with income from services,  that the Bank uses as one of
its most significant performance indicators, increased to 87.2%.

Galicia Liquidity and Capitalization Plan

Restructuring of the Head Office's and of the Cayman Branch's Debt

The  negotiations  for the  restructuring  of the Bank's Head  Office's  and the
Cayman Branch's foreign debt are currently in progress. On June 5, 2003 the Bank
presented to its creditors a new proposal for the  restructuring  of its foreign
debt, that included  different  financial  instruments to be offered in exchange
for its debt. These instruments  consist of different  dollar-denominated  bonds
and  quasi-equity  instruments  that provide the Bank with basic or supplemental
capital. The proposal is under discussion and could suffer significant changes.

Capitalization

The  increase in the Bank's  capitalization  is an  integral  part of the global
restructuring of the Bank's debt with foreign creditors.

Banco de Galicia (Cayman) Ltd.

By late May 2003, Banco de Galicia (Cayman) Ltd.  ("Galicia  Cayman"),  together
with the  Provisional  Liquidator  designated  in due time,  completed  the debt
restructuring proposal of this company and, with the authorization of the Cayman
Islands  Court ("The  Court"),  presented it to all of its  creditors  for their
consideration.

Galicia Cayman's  creditors' meeting was held on July 10, 2003, with the purpose
of approving as a whole or in part the  restructuring  plan  proposed by Galicia
Cayman. The restructuring  plan was approved without  modifications by creditors
representing,  in number and debt held, 99.7% of the votes issued. The degree of
acceptance  exceeded the legal majority required equal to, in terms of number of
creditors,  50% plus one of the votes issued and, in terms of debt held,  75% of
the  debt  corresponding  to  the  votes  issued.   With  the  approval  of  the
restructuring plan by the Court and its filing with the Cayman Islands Corporate
Record,  both on July 16, 2003, the plan became  effective and mandatory on that
same date for all creditors.

The restructuring  plan consisted of a cash down payment equal to 5% of the debt
held by each  creditor and for the  remaining  debt amount,  a debt  certificate
maturing 2012, principal amortization in nine annual

                                                                              17
<PAGE>

                                                                   Banco Galicia

consecutive  installments  (the first two of 15% of the remaining debt principal
and the following ones of 10%) and a 2% fixed annual  interest rate. The initial
cash payment began to be made on August 8, 2003.

Banco Galicia Uruguay S.A.

On June 17, 2003, Banco Galicia Uruguay S.A. ("Galicia Uruguay") opened a period
in which it would receive  expressions  of interest from customers for different
options to exchange deposits restructured in 2002 as time deposits or negotiable
obligations.  These options allowed holders of these  instruments to shorten the
term of the  restructuring of their deposits and to diversify their  investment.
The  aforementioned  period ended on July 24, 2003,  participation was voluntary
and the options  offered could be accepted  partially,  totally or in a combined
manner.  These options included  different  proportions of Boden 2012 and/or new
negotiable obligations to be issued by Galicia Uruguay.

Galicia  Uruguay  received  expressions  of  interest  in the  amount of US$ 185
million. Given that in none of the options the maximum amounts were exceeded, no
pro rata will be applied. Currently Galicia Uruguay is working on the procedures
and approval that are required by the pertinent  Uruguayan  authorities in order
to approve the exchange as soon as possible.

In accordance with the Bank's  estimates,  as of June 30, 2003,  Galicia Uruguay
had a  negative  shareholders'  equity  of  Ps.665.1  million.  This  amount  is
provisioned  in the Bank's  balance sheet in the liability  account  "Provisions
-Other Contingencies."

In a note to the Argentine Central Bank, the Bank requested the authorization of
the regulatory authority to transfer to Galicia Uruguay Boden 2012 for an amount
equivalent to the net effect of the compensation determined for Galicia Uruguay.
This amount was estimated at approximately US$ 438 million.

MAIN REGULATORY ISSUES

Deposits
Through  Decree  No.739/03,  regulated by Argentine  Central  Bank's  Communique
"A"3919,   the  Executive  Power  enabled   holders  of  restructured   deposits
("corralon")  to  request  from  financial  institutions  the  total or  partial
reimbursement  of their  deposits,  in conditions  that varied  depending on the
amount of the deposit and its original  currency of denomination.  The period to
exercise the options contemplated began on April 8 and ended on May 23, 2003. In
the Bank's case, during such period,  deposits for $325 million (principal only)
were presented for their freeing,  while restructured deposits decreased by $364
million (amount that included,  in addition to freed  deposits,  the maturity of
CEDROs and deposit payments pursuant to judicial orders)  equivalent to 45.3% of
restructured  deposits as of March 31, 2003.  This percentage is similar to that
of the financial system as a whole .

The  Bank  retained  approximately  75%  of the  total  of  deposits  originally
constituted in dollars for up to US$30,000 (or $42,000) and in pesos,  that were
freed during the above mentioned period.

Time deposits constituted,  in accordance to the provisions of Decree No.739/03,
to free  deposits  dollardenominated  in origin of amounts  between  $42,000 and
$100,000,  began to mature at the  beginning  of July  2003.  The Bank  retained
approximately 76% of the time deposits maturing during July 2003.

The closing of the "Canje II"  established  by Decree  No.1836/02  was postponed
from  March 12 to May 23,  2003.  As of June 30,  2003,  this  swap had not been
completed.  Therefore,  the Bank's financial statements as of that date included
$79 million  (principal  only) of restructured  deposits  tendered to the "Canje
II". As of the same date,  restructured  deposits  (principal  only) amounted to
$411.3 million.

                                                                              18
<PAGE>

                                                                   Banco Galicia

Pending compensation

A law project is currently at the consideration of Congress that contemplates to
compensate  financia  l  institutions  through  government  securities  in pesos
maturing 2013 for the effects of economic  policy measures or facts generated by
these measures that would require compensation.  These are: i) the adjustment of
pesified  assets  by  using  different   coeffic  ients,  the  CER  or  the  CVS
("asymmetric  indexation")  and ii) the  reimbursement  of deposits  pursuant to
judicial  injunctions  ("amparos")  at market  exchange  rates greater than that
established by the government for the conversion  into pesos of included  financ
ial institutions' assets and liabilities, plus the CER adjustment.

CER/CVS
The Bank has  retained  its  rights  to make  claims  at  suitable  time for the
negative effect on its financial  condition caused by the unequal application of
adjustment indexes. As of June 30, 2003, the difference  resulting from applying
the CER to the amount of loans  subject to  adjustment  by the CVS was  recorded
under "Other Receivables from Financial Intermediation."

Legal actions related to the payment of deposits
As  of  June  30,  2003,  court  orders  received  by  the  Bank  mandating  the
reimbursement  of deposits in their original  currency of denomination or at the
free exchange rate amounted to Ps.16.1 million and US$ 492.6 million. As of that
date,  in compliance  with such court  orders,  the Bank had paid the amounts of
Ps.695.2  million and US$ 93.3  million.  As of March 31, 2003,  the  difference
between the amount paid and the amount  resulting from the conversion into pesos
of the dollar  balance of the deposits  reimbursed  at the Ps.1.40 per US dollar
exchange  rate  (adjusted  by CER and  interest  accrued  until  the date of the
reimbursement) amounted to Ps.497 million. In compliance with Communique "A"3916
of the Argentine Central Bank, as of June 30, 2003, this amount, which until the
close of the  previous  fiscal year was  recorded  under the "Other  Receivables
Resulting from Financial  Brokerage," was recorded under "Intangible Assets" net
of amortization.

The Bank has  retained  its  rights  to make  claims  at  suitable  time for the
negative  effect  on its  financial  condition  caused by the  reimbursement  of
deposits in dollars or in pesos for the equivalent amount at the market exchange
rate,  mandated  by  court  orders  or final  judgements,  not  included  in the
determination  of  the  compensation  to  financial  institutions.   The  method
contemplated  by the Argentine  Central Bank in the above  mentioned  Communique
does not affect the legitimacy of such rights.

Loans to the public sector

The necessary  steps  concerning  the swap of provincial  debt were finalized in
March 2003. To date the swap has not been fully completed, as certain provincial
legislative bodies are still in the process of approving the agreements signed.

As of June 30, 2003, Secured Loans corresponding in origin to an exposure to the
national government amounted to Ps.4,134.8 million. This portfolio is normal and
accrues the CER adjustment  plus, in the Bank's case, an average annual interest
rate of approximately  4%. Secured Loans  corresponding in origin to an exposure
to the Provinces amounted at the same date to Ps.3,483.5 million. This portfolio
accrues the CER adjustment  and a 2% annual  interest rate, and as of that date,
the whole of this portfolio was in the process of being swapped. Subsequently to
the close of the quarter,  completion  of the swap process  began in the case of
Secured Loans corresponding to certain provinces.

In accordance with Argentine Central Bank's Communique  "A"3911,  as of June 30,
2003, a Ps.204.1  million negative  difference  between the present value of the
Secured Loans,  calculated as established  in the  aforementioned  Communique by
using a 3% annual  discount rate, and their technical value (the amount adjusted
to reflect contractual conditions), was reflected in the Bank's books.

                                                                              19
<PAGE>

Government Securities

Government  securit ies in investment  accounts are recorded at their cost value
increased  by accruing  their  internal  rate of return over the period  elapsed
since  the  date  of  inclusion  of the  securities  in the  investment  account
category. In accordance with Argentine Central Bank rules, the carrying value of
investmentaccount  securities must be reduced at each month end for the positive
difference between their book value and their market value increased by 20%.

As of June 30, 2003,  investment accounts included Ps.570 million in Boden 2012,
received as compensation for the effects of the "asymmetric  pacification" under
the  provisions  of Decree  No.905/02  and 2167/02,  carried at their  technical
value. For these securities,  the reduction mentioned in the preceding paragraph
for the difference  between book value and market value  increased by 20% is not
applicable. The remaining Ps.5,909 million recorder under the "Other Receivables
for Financial  Intermediation" account were valued in the same manner. The Boden
2012 is not in default.

Likewise,  as of that date,  investment accounts also included Ps.827 million in
dollar-denominated  Argentine  Republic  External Notes ("Letras  Externas de la
Republica Argentina") currently in default.

As of June 30,  2003,  the  difference  between  market  and book  value for the
securities in  investment  accounts had not been  established,  given that their
trading volume was considered  irrelevant  relatively to the amount issued,  and
therefore was not deemed representative in order to determine their value.

The Boden 2012  quotation as of June 30,  2003,  was  approximately  60% of face
value.

Financial  assistance  from the Argentine  Central Bank granted  before April 1,
2003

Through  Decree  No.739/03,  in April 2003,  the Executive  Power  established a
voluntary procedure for the repayment of the financial assistance granted by the
Argentine Central Bank to financial institutions during the crisis that affected
the  financial  system as from 2001.  The basic purpose is to harmonize the cash
flows of those  financial  institutions  that are  simultaneously  debtors  (for
having  received  financial  assistance  from the  Argentine  Central  Bank) and
creditors (for their holdings of debt instruments) of the public sector.

Art.9 of this Decree  established  that balances due must be amortized in pesos,
in the same number of  installments as those of the assets granted as guarantees
of the financial assistance received, without exceeding 70 monthly installments.
Communique   "A"3941  of  the  Argentine  Central  Bank  established  a  minimum
cumulative  amortization schedule and a monthly repayment of not less than 0.90%
of the adjusted balance.  Mandatory  accelerated  repayment is contemplated when
the interest rate earned by the assets  granted as  guarantees  exceeds 3.5% per
annum as well as  voluntary  prepayment.  Financial  assistance  subject to this
repayment system shall be guaranteed by National  Government  Secured Loans and,
in the absence of the latter, Secured Notes or Loans issued under the provisions
of Decree No.1579/02, or bonds issued under the provisions of Decrees No.905/02,
No.1836/02 and Decree  No.739/03.  In accordance with Communique  "A"3940 of the
Argentine  Central Bank,  financial  institutions  that wish to make use of this
special  repayment  system,  shall have  obtained the approval of the  Argentine
Central Bank to the  proposal  for the  restructuring  of their  external  debt,
before December 5, 2003.

Decree  No.1262703  provided  that the  Argentine  Central Bank shall modify the
above mentioned repayment  conditions,  when the URSF establishes so, subject to
the  following  conditions:  (i) the  average  life  of the  assets  granted  as
guarantees of the financial  assistance  received exceeds 70 months and (ii) the
financial  institution  falls  under the  provisions  of art.34 and 35bis of Law
21,526  (Financial  Ins  titutions  Law) and has adopted a  reorganization  plan
approved by the URSF. In this case,  repayment  will be occur in the same number
of  installments  as that of the assets  granted as  guarantees of the financial
assistance

                                                                              20
<PAGE>

received  with a  maximum  number  of 120  monthly  installments  and a  monthly
amortization of not less than 0.4%.

Through  two  notes  dated  May 12 and June 30,  2003,  the  Bank  informed  the
Argentine  Central Bank of its intention of adhering to the repayment  procedure
established  by Decree  No.739/03  and of  requesting  to the URSF the change in
conditions  contemplated by Decree  No.1262/03.  In addition,  the Bank complied
with items 2 and 3 of Argentine  Central Bank's  Communique "A" 3940,  informing
the regulatory  authority,  in a note, about the status of the negotiations with
foreign  creditors  and the  proposal to  restructure  the Bank's debt with such
creditors.

Loans to the Private Sector

On May 8,  2003,  Congress  approved  a Law 25,737  that  suspended  foreclosure
proceedings on real estate  property  constituting  the home of debtors for a 90
working-day  term  beginning on the date of the  promulgation  of the law, which
occurred on June 3, 2003.

With the purpose of fostering long- and medium-term credit in pesos, through its
Communique "A" 3987, the Argentine  Central Bank authorized  loans adjustable by
the CER.

Minimum Capital Requirements

As mentioned in our previous  press  release,  trough its  Communique  "A" 3959,
dated May 30, 2003, the Argentine Central Bank established a new rule on minimum
capital  requirements for financial  institutions,  with the presentation of the
associated  information regime required beginning May 1, 2003. The Bank complied
with the presentation of the minimum capital information regime to the Argentine
Central Bank on July 7, 2003. On July 25, 2003, through its Communique "A" 3986,
the Argentine Central Bank introduced  certain  modifications and clarifications
to the new rule on minimum capital  requirements,  established by Communique "A"
3959.

In accordance  with  Communique "A" 3986, the new minimum  capital  requirements
will become  effective in January 2004,  with the  obligation to comply with the
associated information regime having been maintained.

Communique  "A"  3986   established   that,   beginning  in  January  2004,  two
coefficients  known  as  "Alfa  1" and  "Alfa  2" will be  applied,  in order to
temporarily reduce the minimum capital  requirement to cover credit risk and the
minimum capital requirement to cover interest-rate risk, respectively.

"Alfa 1" will be applied exclusively to government securities held in investment
accounts;  loans granted to the non-financial  public sector until May 31, 2003;
government securities received by financial institutions as compensation for the
effects  of  the  "asymmetric  pesification"  (articles  28  and  29  of  Decree
No.905/02);  and debt  instruments  issued by the Fiduciary  Fund for Provincial
Development  (Decree  No.1579/02).  For the year  2004,  the  first  period  for
applying this  coefficient,  "Alfa 1" was established in 0.05 and its value will
increase progressively to reach 1 on January 2009.

The initial  value of "Alfa2" will be 0.20 for the year 2004.  The value of this
coefficient will increase progressively to reach 1 in January 2007.

"Minimum cash requirements" and "minimum fund placement requirements"

Through its Communique "A" 3967 dated June 20, 2003, the Argentine  Central Bank
reduced,  effective  July 1, 2003, the  percentages  applicable to determine the
minimum  cash  requirements  on,  and the  minimum  fund  placement  application
resulting from, demand-deposits accounts and time deposits

                                                                              21
<PAGE>

denominated in pesos. The percentage  requirements reduced were those applicable
to demand deposits and time deposits of up to 89 days.

The most  significant  reductions  were on the total  requirement  (minimum cash
requirements  plus  minimum fund  placement  requirement)  applicable  to demand
deposits (a 10 percentage  points  reduction) and on demand placements by mutual
funds (a 20 percentage  points  reduction).  The remaining  requirements on time
deposits/CEDROs  of up to 89 days decreased  between 4 and 8 percentage  points,
depending on their term.

FX market

Communique  "A" 3969  dated  June  26,  2003,  increased  the  minimum  limit on
authorized  holdings of foreign  exchange by financial  institutions  ("Posicion
General de Cambios")  from US$ 1 million to US$ 1.5 million,  and maintained the
maximum limit established as 10% of a financial institution's regulatory capital
("Responsabilidad  Patrimonial Computable, RPC") as of the end of November 2001.
For  financial  institutions  operating  in the FX market  through  more than 15
branches,  the minimum limit was  increased by US$ 2 million.  The maximum limit
will be  reduced by 50% in the case of  financial  institutions  with  financial
assistance from the Argentine  Central Bank not  restructured in accordance with
the  provisions  of Decree  No.739/03  of more  than 50% of the last  regulatory
capital recorded by such institutions.

Decree  No.285/03  of June 30,  2003,  regulated  by  Argentine  Central  Bank's
Communique "A" 3972,  established that beginning July 1, 2003,  foreign exchange
entering  the  domestic  marketplace  will have to remain in the  country  for a
180-day minimum term,  counted  beginning the date in which foreign  exchange is
liquidated.  This obligation does not apply to foreign trade  transactions or to
foreign direct investment.