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                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549
                                -----------------
                                   FORM 20-F/A

                     Annual Report Pursuant to Section 13 or
                  15(d) of the Securities Exchange Act of 1934

                   For the Fiscal Year Ended December 31, 2001
                         Commission File Number 0-30852
                                -----------------
                          GRUPO FINANCIERO GALICIA S.A.

             (Exact name of Registrant as specified in its charter)

                             GALICIA FINANCIAL GROUP
                 (Translation of Registrant's name into English)

                              REPUBLIC OF ARGENTINA
                 (Jurisdiction of incorporation or organization)

                          Grupo Financiero Galicia S.A.

                          Tte. Gral. Juan D. Peron 456

                        C1038 AAJ-Buenos Aires, Argentina

                    (Address of principal executive offices)

             Securities registered or to be registered pursuant to
                           Section 12(b) of the Act:

                                      None

             Securities registered or to be registered pursuant to
                           Section 12(g) of the Act:

             Class B Ordinary Shares, Ps.1.00 par value, ten shares
             of which are represented by American Depositary Shares

        Securities for which there is a reporting obligation pursuant to
                           Section 15(d) of the Act:

                                      None

     Indicate the number of outstanding shares of each of the issuer's classes
of capital or common stock as of the close of the period covered by the Annual
Report:

     Class A Ordinary Shares, Ps.1.00 par value . . . . . . . . 281,221,650

     Class B Ordinary Shares, Ps.1.00 par value . . . . . . . . 811,185,367

     Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days. Yes [X] No [ ]

     Indicate by check mark which financial statement item the registrant has
elected to follow.
                             Item 17 [ ] Item 18 [X]

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<PAGE>

This Form 20-F/A amends the Form 20-F filed by Grupo Financiero Galicia, S.A.
("Grupo Galicia") on July 1, 2002 (the "Form 20-F"), and deletes in its entirety
the following sections, and replaces them with the sections contained in this
Form 20-F/A: "Item 3. Key Information--Selected Financial Data", "Item 5.
Operating and Financial Review and Prospects--U.S.GAAP and Argentine Banking
GAAP Reconciliation", "Item 18. Financial Statements" and "Item 19. Financial
Statements and Exhibits--(a) Financial Statements." In addition, this Form
20-F/A amends the Form 20-F by adding the following new exhibits 2.2 and 2.3
(Statement Under Oath of Principal Executive Officer Regarding Facts and
Circumstances Relating to Exchange Act Filings and Statement Under Oath of
Principal Financial Officer Regarding Facts and Circumstances Relating to
Exchange Act Filings, respectively). This Form 20-F/A does not amend, update and
restate any other section or Items of the Form 20-F, and therefore, each Item or
section not modified by this Form 20-F/A is as of the date of the Form 20-F.

Because of the great uncertainty of the Argentine economy and the resulting
effects on the country, there was a lack of sufficient and verifiable evidence
to support the realizability of Grupo Galicia's assets and liabilities at the
time the Form 20-F was originally filed in July 2002. In view of the inability
to support the estimates of the effects of the current economic and political
situation on the carrying value of Grupo Galicia's assets and liabilities at
December 31, 2001, the consolidated financial statements as of December 31, 2001
included in the Form 20-F were unaudited (with respect to which no opinion of
the independent accountants had been rendered). Similarly, because of the lack
of sufficient and verifiable evidence to complete the calculations of
adjustments for differences between Argentine Banking GAAP and U.S. GAAP, no
U.S. GAAP reconciling information was presented for the year ended December 31,
2001.

The purpose of this Form 20-F/A is to file the audited consolidated financial
statements for the year ended December 31, 2001, which were previously not
included in the Form 20-F. In addition, this Form 20-F/A contains a
reconciliation to U.S. GAAP of Grupo Galicia and Banco de Galicia y Buenos
Aires, S.A.'s net income and total shareholders' equity for the period ended
December 31, 2001.

2
<PAGE>

                                     PART I

Item 3. Key Information

Selected Financial Data

The selected consolidated financial data presented below as of December 31, 2001
have been derived from the audited consolidated financial statements for the
year ended December 31, 2001 and for the six-month period ended December 31,
2000, they have been derived from the audited financial statements for the
six-month period ended December 31, 2000 included in this Annual Report.

The selected consolidated financial data presented below as of June 30, 2000,
1999 and 1998 and for the years ended June 30, 2000 and 1999 have been taken or
derived from the audited consolidated financial statements included in this
Annual Report for Banco Galicia for the relevant periods. The selected
consolidated financial data as of June 30, 1998 and 1997 and for the years ended
June 30, 1998 and 1997 are derived from the audited consolidated financial
statements not presented herein for Banco Galicia for the relevant periods.

We and Banco Galicia prepare our financial statements in accordance with
Argentine Banking GAAP, which differs from Argentine GAAP and U.S. GAAP.

The financial information presented below is only a summary and should be read
together with the financial statements included in this Annual Report.

As described in other sections of this Annual Report, as a result of the events
that occurred in Argentina after December 31, 2001, and the economic policy
measures taken by the Argentine Government subsequently to December 31, 2001,
the information in this section does not reflect the significant changes
introduced by the current economic policy to our and the Bank's assets and
liabilities, cash flows and results of operations, and therefore it is not
indicative of our and the Bank's current financial positions or our and the
Bank's anticipated results of operations or business prospects. See "--Exchange
Rate Information", "Information on the Company--Selected Statistical
Information" and "Financial Information--Recent Events in Argentina and the
Impact on Grupo Galicia."

3
<PAGE>

<TABLE>
<CAPTION>
                                             Grupo Financiero Galicia,          Banco Galicia, Fiscal Year Ended June 30,
                                             Fiscal Year    Six Months
                                                Ended         Ended
                                             December 31,  December 31,
                                                 2001          2000            2000          1999         1998         1997
                                                 ----          ----            ----          ----         ----         ----
                                                            (in millions of pesos, except as noted)(1)
<S>                                       <C>             <C>           <C>           <C>          <C>            <C>
CONSOLIDATED INCOME STATEMENT:
Amounts in Accordance with Argentine Banking GAAP
Financial Income........................  Ps. 1,627.8     Ps. 820.2     Ps. 1,499.4   Ps. 1,269.1  Ps. 1,077.5    Ps. 899.7
Financial Expenses......................        964.9         442.8           776.4         696.6        644.0        462.7
Monetary Loss from Financial
  Intermediation and Quotation
  Difference Relating to Investments
  in Foreign Branches and Controlled
  Companies.............................
Net Financial Income (2)................        662.9         377.4           723.0         572.5        433.5        437.0
Provision for Losses on Loans and
  Other Receivables.....................        457.7         123.6           249.5         216.0         84.8        112.4
Net Income from Services (3)............        427.8         191.3           342.3         294.2        230.5        183.4
Administrative Expenses.................        621.7         301.9           607.6         561.8        474.2        368.0
Monetary Gain from Operating Expenses...                        -.-             -.-           -.-          -.-          -.-
Minority Interest.......................       (10.1)         (6.3)             0.3        (10.9)        (1.7)        (1.1)
Income from Equity in Other Companies...         15.9         (4.4)           (5.5)         128.9         27.5         18.0
Miscellaneous Income (Loss), Net (4)....        175.2           9.8            27.5          16.2          3.4          8.9
Income before Taxes.....................        192.3         142.3           230.5         223.1        134.2        165.8
Income Tax..............................       (72.2)        (52.4)          (74.2)        (72.5)       (19.9)       (49.1)
Net Income..............................        120.1          89.9           156.3         150.6        114.3        116.7
Adjusted Net Income per Share (in
  pesos)................................        0.110         0.088           0.133         0.129        0.098        0.100
Cash Dividends per Share (in pesos).....           --            --             0.2           0.1          0.1          0.1
Book Value per Share (in pesos).........        1.289         1.290           1.037         1.033        0.929        0.770
Stock Dividends per Share (in pesos)....           --            --              --           0.2          0.1          0.2
Amounts in Accordance with U.S. GAAP
Net Income (loss)....................... Ps.(3,920.4)     Ps . 98.3     Ps.   164.0   Ps.   149.4  Ps.    69.8    Ps. 117.9
Adjusted Net Income (loss) per Share....      (3.589)         0.096           0.140         0.128        0.060        0.101
Book Value (deficit) per Share..........      (2.446)         1.193           1.035         0.870        0.818        0.753
Financial Income .......................      1,619.9         823.0         1,496.4       1,262.3      1,042.9        899.7
Net Financial Income....................        655.4         380.2           720.0         565.7        398.8        437.1
Provision for Losses on Loans and
  Other Receivables.....................      2,891.3         118.5           233.3         230.2         94.0        114.8
Income Tax..............................         96.7          45.3            66.3          43.0         18.5         43.5
CONSOLIDATED BALANCE SHEET
Amounts in Accordance with Argentine Banking GAAP
Cash and Due from Banks................. Ps.    517.3     Ps. 620.1     Ps.   625.4   Ps.   792.5  Ps.   982.3    Ps. 452.4
Government Securities, Net..............        124.0          77.2           411.2         676.3      1,008.5      1,582.4
Loans, Net..............................      9,125.3       9,241.4         9,326.8       8,446.4      7,617.6      6,010.0
Total Assets............................     12,651.7      16,741.1        16,081.7      13,720.8     13,001.8     10,915.0
Deposits................................      6,128.0       8,903.8         8,743.6       7,850.4      7,141.9      5,976.9
Other Funds (5).........................      5,115.2       6,516.5         6,006.0       4,659.7      4,771.3      4,036.0
Total Shareholders' Equity..............      1,408.5       1,320.8         1,332.1       1,210.7      1,088.6        902.1
Average Total Assets (6)................     14,508.0      15,171.6        13,963.4      12,728.7     12,221.8      8,223.7
Percentage of Period-end Balance
  Sheet Items Denominated in Dollars:
Loans, Net of Allowances................       86.34%        79.85%          77.55%        75.70%       77.58%       79.99%
Total Assets............................        80.05         75.65           74.20         72.08        72.20        76.29
Deposits................................        81.15         70.81           69.43         65.81        65.58        66.56
Total Liabilities.......................        74.07         79.06           78.56         75.20        77.13        77.73
Amounts in Accordance with U.S. GAAP
Trading Securities...................... Ps.     64.4     Ps. 103.8     Ps.   389.5   Ps.   445.6  Ps. 1,006.1    Ps.2,569.3
Available-for-Sale Securities...........      1,322.6       1,986.6         1,660.5       1,813.2      1,611.8        642.9
Total Assets............................      9,558.5      14,884.4        14,604.7      13,108.2     13,162.9      9,434.2
Total Liabilities.......................     12,230.6      13,662.7        13,392.4      12,089.1     12,204.2      8,551.8
Shareholders' Equity (deficit)..........    (2,672.1)       1,221.7         1,212.3       1,019.1        958.7        882.4
</TABLE>

4
<TABLE>
<CAPTION>
                                             Grupo Financiero Galicia,          Banco Galicia, Fiscal Year Ended June 30,
                                             Fiscal Year    Six Months
                                                Ended         Ended
                                             December 31,  December 31,
                                                 2001          2000            2000          1999         1998         1997
                                                 ----          ----            ----          ----         ----         ----
                                                            (in millions of pesos, except as noted)(1)
<S>                                       <C>             <C>           <C>           <C>          <C>            <C>
SELECTED RATIOS:
Ratios in Accordance with Argentine Banking GAAP:
Profitability and Efficiency
Net Yield on Interest-Earning Assets
  (7)*..................................        6.54%         5.98%           6.18%          5.8%        4.46%         6.3%
Interest Spread, Nominal  Basis (8)*....         5.56          5.14            5.35          5.22         3.96         5.66
Financial Margin (9)*...................         5.36          5.88            6.07          5.22         4.07         6.00
Return on Average Assets (10)*..........         0.90          1.27            1.12          1.18         0.93         1.42
Return on Average Shareholders' Equity
  (11)*.................................         8.67         14.68           12.41         13.32        11.46        15.57
Net Income from Services as a
  Percentage of Operating Income (12)...        39.22         33.64           32.13         33.94        34.71        29.56
Net Income from Services as a
  Percentage of Administrative Expenses.        68.81         63.37           56.34         52.37        48.61        49.84
Efficiency Ratio (13)...................        57.00         53.09           57.04         64.82        71.42        59.32
Capital
Shareholders' Equity as a Percentage
  of Total Assets.......................       11.13%         7.89%           8.28%         8.82%        8.37%        8.26%
Tangible Shareholders' Equity as a
  Percentage of Total Assets (14).......         9.35          6.88            7.36          7.84         7.24         7.68
Total Liabilities as a Multiple of
  Total Shareholders' Equity............        7.98x        11.68x          11.07x        10.33x       10.94x       11.10x
Total Capital Ratio.....................        17.18         15.26           17.34         13.08        14.26        19.65
Excess Capital over Minimum Capital
  Required Excluding the Convertible
  Securities as a Percentage of
  Minimum Capital Required (15).........        42.31         27.73           45.13         12.66        22.59        68.64
Liquidity
Cash and Due from Banks as a
  Percentage of Total Deposits..........        8.44%         6.96%           7.15%        10.10%       13.75%        7.57%
Liquid Assets (16) as a Percentage of
  Total Deposits........................        14.24         27.11           29.92         30.98        39.93        43.99
Loans, Net as a Percentage of Total
  Assets................................        72.13         55.21           58.00         61.56        58.59        55.06
Credit Quality
Past Due Loans (17) as a  Percentage
  of Total
  Loans.................................        4.96%         3.46%           3.40%         3.67%        3.31%        3.69%
Non-Accrual Loans (18) as a Percentage
  of Total Loans........................         6.74          4.04            3.95          4.51         4.08         4.72
Allowance for Loan Losses as a
  Percentage of Loans Excluding
  Interbank Loans.......................         5.08          3.04            2.92          3.46         3.13         3.28
Non-Accrual Loans (18) as a
  Percentage of
  Loans Excluding Interbank Loans.......         6.87          4.33            4.23          4.97         4.60         5.15
Allowance for Loan Losses as a
  Percentage
  of Non-Accrual Loans (18).............        73.94         70.39           69.08         68.23        67.96        63.68
Net Charge-Offs (19).................... Ps.    199.6     Ps.  98.1     Ps.   232.2   Ps.   183.8  Ps.    69.9    Ps.  67.0
Net Charge-Offs (19) as a Percentage
  of Average Loans......................        2.20%         2.20%           2.80%         2.44%        1.01%        1.32%
Ratios in Accordance with U.S. GAAP:
Capital
Shareholders' Equity (deficit) as a
  Percentage of
  Total Assets..........................      (27.96)         8.21%           8.30%         7.77%        7.28%        9.35%
Tangible Shareholders' Equity
  (deficit) as a Percentage of Total
  Assets................................      (29.34)          7.37            7.57          7.02         6.39         8.91
Total Liabilities as a Multiple of
  Total Shareholders' Equity............      (4.58)x        11.18x          11.05x        11.86x       12.73x        9.69x
Liquidity
Loans, Net as a Percentage of Total
  Assets................................       64.34%        62.07%          63.79%        64.23%       57.78%       63.68%
Credit Quality
Allowance for Loan Losses as a
  Percentage of Loans Excluding
  Interbank Loans.......................       31.01%         3.16%           3.09%         3.86%        3.37%        3.42%
Allowance for Loan Losses as a
  Percentage of Non-Accrual Loans.......       413.51         72.99           73.07         76.21        73.34        66.42
INFLATION:
Inflation (20)(21)......................      (4.30)%       (0.55)%           4.51%       (5.14)%      (2.04)%      (0.08)%
</TABLE>

5
<PAGE>

(*)  Annualized for the six months ended December 31, 2000.
(1)  All amounts in current pesos, except inflation, percentages, ratios,
     multiples and per share data.
(2)  Net financial income mainly represents income from interest on loans and
     other receivables from financial brokerage plus net income from government
     and corporate debt securities, including gains and losses, less interest on
     deposits and other liabilities from financial brokerage and the monetary
     loss from financial brokerage.
(3)  Income from services net of expenditures from services.
(4)  Miscellaneous income less miscellaneous losses.
(5)  Includes mainly liabilities with the Argentine Central Bank, other banks
     and international entities and negotiable obligations.
(6)  The average balances of assets and liabilities, including the related
     interest receivables and payables, are calculated on a daily basis for
     Banco Galicia and for Galicia Uruguay and on a monthly basis for Tarjetas
     Regionales S.A., the regional credit card companies in which the Bank holds
     majority interests, the holding company Grupo Financiero Galicia S.A. and
     its non-banking subsidiaries.
(7)  Net interest earned divided by interest-earning assets. For a description
     of net interest earned, see "Information on the Company -- Selected
     Statistical Information -- Interest-Earning Assets -- Net Yield on
     Interest-Earning Assets."
(8)  Represents the difference between the average nominal interest rates earned
     on interest-earning assets and the average nominal interest rates paid on
     interest-bearing liabilities.
(9)  Financial margin represents net financial income, divided by average
     interest-earning assets.
(10) Net income as a percentage of average total assets.
(11) Net income as a percentage of average shareholders' equity.
(12) Operating income is defined as net financial income plus net income from
     services.
(13) Administrative expenses net of monetary gain (loss) from operating expenses
     as a percentage of operating income.
(14) Tangible shareholders' equity is defined as shareholders' equity minus
     intangible assets.
(15) Until March 1998, a total of Ps.151.8 million of the Banco Galicia's excess
     capital was represented by Banco Galicia's 7% Convertible Subordinated
     Negotiable Obligations due 2002 (the "Convertible Securities"). On
     September 19, 1998, a total of Ps.149.3 million of the Convertible
     Securities were converted into Banco Galicia's Class B Shares and Ps.2.4
     million were redeemed.
(16) Liquid assets include cash and due from banks, government securities,
     certificates of deposit acquired to the Argentine Central Bank, and
     placements with correspondent banks.
(17) Past due loans consist of the entire loan principal and interest receivable
     for those loans for which either the principal or any interest payment is
     91 days or more past due.
(18) Non-accrual loans are defined as those loans in the categories under the
     Argentine Central Bank's classification: (a) consumer--defective
     fulfillment, difficulty in recovery, uncollectible and uncollectible for
     technical reasons and (b) commercial--with problems, high risk of
     insolvency, uncollectible and uncollectible for technical reasons.
(19) Charge-offs plus direct charge-offs minus bad debts recovered.
(20) As measured by changes in the Wholesale Price Index in Argentina.
(21) Source: Instituto Nacional de Estadisticas y Censos (National Bureau of
     Statistics and Census, INDEC).

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<PAGE>

Item 5. Operating and Financial Review and Prospects

Critical Accounting Matters

The Company believes the following critical accounting policies affect its more
significant judgments and estimates used in the preparation of its consolidated
financial statements.

Allowance for Loan Losses

Grupo Galicia's allowance for loan losses is maintained in accordance with the
regulations established by the Argentine Central Bank. Under such regulations, a
minimum allowance for loan losses is calculated primarily based upon the loan
classification of Banco Galicia's commercial loan borrowers and based upon past
due status for Banco Galicia's individual loan borrowers (including commercial
loans less than Ps. 200,000). Although we are required to follow the methodology
and guidelines for determining the loan loss allowance as set forth by the
Argentine Central Bank, we are allowed to provide additional allowances for loan
loss reserve. The determination of the allowance for loan losses requires
significant degrees of judgment.

For commercial loans, we are required to classify all of Banco Galicia's
commercial loan borrowers. In order to perform the classification we must
consider the management and operating history of the borrower, the present and
projected financial situation of the borrower, the borrower's payment history
and ability to service the debt, the capability of the borrower's internal
information and control systems and the risk in the sector in which the borrower
operates. We apply the Argentine Central Bank minimum loss percentages to Banco
Galicia's commercial loan borrowers based on the loan classification and the
nature of the collateral, or guarantee, of the loan. In addition, based on the
overall risk of the portfolio, we consider whether or not additional loan loss
reserves in excess of the minimum required are warranted.

For Banco Galicia's consumer loan portfolio, we classify loans based upon their
past due status consistent with the requirements of the Argentine Central Bank.
Minimum loss percentages required by the Argentine Central Bank are also applied
to the totals in each loan classification.

At December 31, 2001, the situation in Argentina was such that our ability to
classify Banco Galicia's commercial loan borrowers was limited. Information on
Banco Galicia's commercial loan borrowers was not available to allow us to make
an informed judgment on the loan classification. Therefore, we believe that
significant adjustments will be made to Banco Galicia's loan loss reserve during
the year ended December 31, 2002 once more information on Banco Galicia's
borrowers becomes available. In addition, due to the condition of the economy in
Argentina in 2002, and the resulting affect on Banco Galicia's commercial and
consumer borrowers, it is likely that material adjustments to Banco Galicia's
loan loss reserve for changes in conditions during 2002 will be necessary in the
short term.

In addition, we have outstanding significant amounts of loans from the Argentine
government. These loans require no allowance for loan loss reserve under
Argentine Central Bank regulations. Given the current situation in Argentina,
the realization of these loans at their contractual maturities are uncertain and
it is also uncertain as to whether these loans can serve to offset our debt owed
to the Argentine Central Bank.

Valuation of Securities and Derivatives

We carry assets and liabilities related to our government and other securities
and derivative trading portfolios at their estimated fair value. Such amounts
are based on either quoted market prices or estimated values derived by the Bank
utilizing dealer quotes. As market conditions change, adjustments to the fair
value of securities and derivatives will be made to reflect those conditions.
Future sales of these securities will reflect the market conditions at the time
and may differ significantly from the estimate fair market value at the balance
sheet date.

Goodwill

Goodwill is carried at cost less accumulated amortization. The carrying amount
of Goodwill is analyzed for impairment based on estimates of future undiscounted
cash flows generated by the business acquired. Because of the economic
conditions in Argentina and the resulting changes in estimated cash flows of our
acquired businesses that have goodwill, adjustments for impairment of Goodwill
is reasonably possible in the short term.

7

<PAGE>

Repossessed Assets and Real Estate Held for Sale

We carry our other repossessed asset portfolio and real estate held for sale at
the lower of their carrying value or fair market value. Our estimates of fair
market values of such repossessed assets and real estate held for sale consider
outside and internal bank-prepared appraisals. These appraisals are based on
assumptions on market conditions and presume an ability to dispose of the assets
in a reasonable time period. Should our assumptions regarding market conditions
change, we would adjust accordingly our estimates of the fair value of our
repossessed asset portfolio.

Other Receivables from Financial Brokerage and Miscellaneous Receivables

We carry other receivables from financial brokerage and miscellaneous
receivables net of allowances for uncollectable amounts. Our judgment regarding
the ultimate collectability is performed on an account by account basis and
considers our assessment of the borrowers ability to pay based on factors such
as the borrowers financial condition, past payment history, guarantees and past
due status. Under the current situation in Argentina, the settlement of amounts
due from and due to third parties has slowed significantly. Given this
situation, it is likely that we will increase our allowances for some of the
amounts due to us.

Equity Investments in Other Companies

We carry these investments at the equity method where a significant influence in
the corporate decision making process exists. In other cases the equity
investment is carried at the lower of cost plus dividends or the equity method
value. These balances may be adjusted considering the effects of the new
economic environment on the financial statements of these corporations.

Assets under Financial Leases

We carry assets under financial leases at cost net of unearned income and the
residual value of the corresponding assets. Allowances for losses are provided
based on the Argentine Central Bank rules applied to commercial or consumer
loans. Under the current situation in Argentina, it is likely that adjustments
on the allowance for lease losses or the residual value of assets under
financial leases will be necessary in the short term.

Critical Accounting Policies  - U.S. GAAP

The above critical accounting policies for Argentine Banking GAAP are key
accounting policies on which our financial condition and results of operations
under U.S. GAAP are dependent. Such key accounting policies involve complex
matters or are based on subjective judgments or decisions. Additional
information in connection with certain key accounting policies for U.S. GAAP
purposes follows:

Allowance for Loan Losses

The allowance for loan losses represents the estimate of probable losses in the
loan portfolio. Determining the allowance for loan losses requires significant
management judgments and estimates including, among others, identifying impaired
loans, determining the customers' ability to pay and determining the fair value
of underlying collateral. Actual events will likely differ from the estimates
and assumptions used in determining the allowance for loan losses. Because of
the uncertain economic situation in Argentina and the effect on Grupo Galicia's
customers, it is at least reasonably possible that additional provisions for
loan losses will be required in the future.

The resolution of the allowance on the outstanding loans from the Argentine
Government or from Argentine Provinces is subject to the economic and political
situation in Argentina, including the ability of Argentina to repay or refinance
its external debt and its ability to obtain additional liquidity from the
International Monetary Fund or other sources. Outstanding loans from the public
sector at December 31, 2001 was Ps.3,974.4 million.

Additional provisions for loan losses could occur in the short term as
resolutions, measures and exchanges of financial instruments designed to address
the economic crisis in Argentina unfold. In addition, should loans to the
Argentine Federal Government be available to offset debt due to the Argentine
Central Bank or other Argentine Federal Government entities, some or all of the
provisions for loan losses previously recognized may be reversed.

Fair Value Estimates

Quoted market price in active markets is the most reliable measure of fair
value.

8

<PAGE>

In connection with the swap of government securities for loans, as describe in
Note 39d(ii) to the financial statements, an estimate of the fair value of the
loans received was made absent observable quoted market prices for such loans.
The determination of the fair value of the loans requires estimates and
assumptions concerning future cash flows and the rate at which those future cash
flows are discounted. This process produces an estimated fair value amount that
may not reflect net realizable value or that does not reflect the amounts that
the loans will ultimately be settled for in the future. These loans will be
subject to the allowance for loan loss process described above.

Furthermore, Grupo Galicia holds retained interests in securitzation trusts.
Those investments are carried at estimated fair market value. Determining fair
market values of such investments requires estimating future cash flows and
applying a discount rate to those cash flows. Such estimates do not purport to
represent what those securities could be sold for at the balance sheet date or
what those securities will be settled for. Changes in the values of such
securities are common. The values are affected by the performance of the
underlying loans in the trust and changes in estimated discount rates and other
assumptions.

Impairment of Assets other than Loans

Certain assets, such as goodwill, equity investments, securities available for
sale, and premises and equipment, are subject to an impairment review. Asset
impairment charges require considerable judgment and are recorded when market
value declines below the carrying value is deemed to be an other than temporary
decline, or where the cost of the asset is deemed to not be recoverable. Based
on the economic situation in Argentina and the effect of resolutions and
measures yet to be adopted, Grupo Galicia's assets may be subject to further
impairment charges in the short term.

Deferred Tax Asset Valuation Allowance

Deferred tax assets and liabilities are recorded for the estimated future tax
effects of temporary differences between the carrying amounts of assets and
liabilities recorded for accounting and tax reporting purposes and for the
future tax effects of net operating loss carryforwards. Grupo Galicia has a
significant amount of other deferred taxes assets, primarily generated from the
U.S. GAAP adjustments associated with the allowance for loan losses, the
securities for loan swap, and the foreign currency adjustment for the estimated
peso - U.S. dollar exchange rate at December 31, 2001. The carrying amounts of
deferred tax assets are subject to management's judgment based on available
evidence that realization is more likely than not and they are reduced, if
necessary, by a valuation reserve. Based on the uncertainty with Grupo Galicia's
ability to continue as a going concern, a full valuation reserve on the net
deferred tax assets has been recognized at December 31, 2001.

In the event that all or part of our net deferred tax assets in the future
become realizable under U.S. GAAP, an adjustment to our deferred tax assets
would be credited to income tax expense in the period the determination was
made.

U.S. GAAP and Argentine Banking GAAP Reconciliation

General

Grupo Galicia and Banco Galicia prepare their financial statements in accordance
with Argentine Banking GAAP. The more significant differences between Argentine
Banking GAAP and U.S. GAAP relate to the determination of the allowance for loan
losses, the carrying values of certain government securities and other assets,
foreign currency translation and recognition of deferred income taxes. For more
detail on differences in accounting treatment between Argentine Banking GAAP and
U.S. GAAP through December 31, 2001, see Note 39 to the consolidated financial
statements of Grupo Galicia.

With respect to the determination of the allowance for loan losses, Banco
Galicia follows the rules of the Argentine Central Bank. Under these rules,
reserves are based on specific reserve requirements established by the Argentine
Central Bank. U.S. GAAP requires that an impaired loan be generally valued at
the present value of expected future cash flows discounted at the loan's
effective rate or at the fair value of the collateral, if the loan is collateral
dependent.

During the fiscal year ended December 31, 2001, and as a consequence of Decree
No.1387/01, the Bank swapped effective as of November 6, 2001, part of its
Argentine public debt instruments, for Ps.2,028.3 million, under the

9
<PAGE>

Promissory Note/Bond program, for Secured Loans. As established by article 20 of
the above mentioned decree, the conversion for Argentine Banking GAAP purposes
was made at the nominal value, at a rate of exchange of $ 1=US$ 1 and in the
same currency as that of the converted obligation. The Argentine Central Bank
provided that the difference between the nominal value of the Secured Loans and
the book value of the instruments exchanged (in the case of securities,
classified and valued as "investment accounts" or "for trading purposes", under
Argentine Central Bank rules) must be credited to income and added to the
recorded amount included in "Loans - To the Non-Financial Public Sector" on a
monthly basis, in proportion to the term of each of the secured loans received.

In accordance with U.S. GAAP, satisfaction of one monetary asset (in this case a
debt security) by the receipt of another monetary asset (in the case a Secured
Loan) for the creditor is generally based on the market value of the asset
received in satifaction of the debt. In this particular case, the Secured Loan
being received was significantly different in structure and in interest rates
than the debt securities swapped. Therefore, the fair value of the loans was
determined on the balance sheet date based on the contractual cash flows of the
loan received discount at an estimated market value. The estimated fair value of
the loan received will consitute the cost basis of the asset. The difference
between the cost basis and amounts expected to be collected will be amortized on
an effective yield basis over the life on the loan.

With respect to foreign currency exchange differences, the official exchange
rate between the US dollar and the Argentine peso in Argentina was 1 to 1 at
December 31, 2001 and for Argentine GAAP purposes, this rate was used to
translate all US dollar denominated assets and liabilities at December 31, 2001.
For U.S. GAAP purposes, foreign currency transactions should be translated at
the applicable rate at which those particular transactions could be settled at
the balance sheet date. In anticipation of an announced devaluation, "exchange
houses" in Argentina (used for limited personal transactions and not for
settling business transactions) started exchanging dollars at 1.4 or more pesos
to the dollar prior to December 31, 2001. Such exchange houses were closed at
December 31, 2001. Through January 10, 2002, no transactions were conducted in
US dollars and there was no exchangeability between the peso and the dollar.
Under Statement of Accounting Standards No. 52, if the exchangeability between
two currencies is temporarily lacking at the balance sheet date, the first
subsequent rate at which exchanges could be made is used for translating foreign
currency transactions. In this case, the January 11 exchange rate of 1.6 to 1
was the first available rate after year end and thus that rate was used for U.S.
GAAP purposes to translate US dollar denominated assets and liabilities at
December 31, 2001.

In addition, Grupo Galicia's equity holdings in Argentine companies were
similarly adjusted under U.S. GAAP for its proportional effect of applying the
1.6 to 1 exchange rate to the U.S. dollar denominated assets and liabilities of
such companies at December 31, 2001.

With respect to the recognition of deferred income taxes, Argentine Banking GAAP
allows for the recognition of income taxes for such amounts currently payable
but does not recognize deferred income taxes. U.S. GAAP recognizes deferred
income taxes for the future tax benefits or liabilities associated with
differences in the carrying values of assets and liabilities for tax and
financial statements purposes. A valuation allowance is provided under U.S. GAAP
when it is more likely than not that the benefit of a deferred tax asset will
not be realized.

Under Argentine Banking GAAP, certain costs such as the set up costs for
branches, termination costs, and Year 2000 compliance costs are deferred and
amortized. Under U.S. GAAP, these costs are expensed as incurred.

As a result of the above and other differences, net income and shareholders'
equity for Grupo Galicia and Banco Galicia under Argentine GAAP and U.S. GAAP
for the periods indicated were as follows:

10
<PAGE>

<TABLE>
<CAPTION>
                                            Net Income (loss)                     Shareholders' Equity (deficit)
                                            -----------------                     ------------------------------
                                 Argentine GAAP              U.S. GAAP         Argentine GAAP              U.S. GAAP
                                 --------------              ---------         --------------              ---------
                                                                 (in millions of pesos)
Grupo Galicia

<S>                                    <C>                <C>                      <C>                  <C>
Fiscal Year 2001.........              Ps.120.1           Ps.(3,920.4)             Ps.1,408.5           Ps.(2.672,1)
Six Months ended December 31,
2000.....................                  89.9                   98.3                1,320.8                1,221.7

Banco Galicia:

Fiscal Year 2000.........              Ps.156.3           Ps.    164.0             Ps.1,332.1           Ps.  1,212.3
Fiscal Year 1999.........                 150.6                  149.4                1,210.7                1,019.1
Fiscal Year 1998.........                 114.3                   69.8                1,088.6                  958.7
Fiscal Year 1997.........                 116.7                  117.9                  902.1                  882.4
Fiscal Year 1996.........                  76.5                   78.0                  621.8                  584.1
</TABLE>

Loan Loss Reserves under U.S. GAAP

For the purposes of analyzing its loan loss reserve under U.S. GAAP, Banco
Galicia divides its loan portfolio into performing and non-performing commercial
and consumer loans.

     Performing Commercial and Consumer Loans

Performing loans are considered to be loans that are classified under the
Argentine Central Bank classification guidelines as:

o    "Normal" and "Normal Performance"
o    "Potential Risk" and "Improper Fulfillment"

Banco Galicia performs analyses of historical losses from the performing
commercial and consumer loan portfolios in order to estimate losses for U.S.
GAAP purposes resulting from loan losses that have been incurred in the
performing loan portfolio at the balance sheet date but which have not been
individually identified.

Banco Galicia estimates that on average it takes a period of up to one year
between the trigger of an impairment event and the identification of a loan as
being a probable loss. Therefore, Banco Galicia has concluded that the losses
incurred by the performing loan portfolio over the next year give a basis for
estimating the amount of loss at the balance sheet date. The Bank has collected
data on the amounts of losses that have been incurred on commercial loans and
consumer loans that were performing one year before. Using this data, the range
of estimated default probabilities and estimated losses given default yield the
following estimated SFAS 5 reserve for the performing commercial and consumer
loan portfolio.

<TABLE>
<CAPTION>
                                 December 31, 2001      December 31, 2000        June 30, 2000          June 30, 1999
                                  High       Low        High         Low        High        Low        High        Low
<S>                            <C>         <C>          <C>        <C>        <C>         <C>         <C>        <C>
Performing Commercial Loan..   Ps. 131.0   Ps. 12.8     Ps. 39.4   Ps. 14.2   Ps. 24.4    Ps. 15.1    Ps. 9.9    Ps. 4.6
Performing Consumer Loans..     Ps. 94.2   Ps. 83.2     Ps. 84.5   Ps. 68.5   Ps. 75.2    Ps. 41.3    Ps. 75.0   Ps. 41.2
</TABLE>

     Non-Performing Consumer Loan Portfolio

The non-performing consumer loan portfolio is defined as representing the
following portfolio under the Argentine Central Bank classification system:

o    "Defective Fulfillment"
o    "Difficulty in Recovery"
o    "Uncollectible"

For these loans, Banco Galicia has developed a range of loss projections based
on the default experience of non-performing loans. Based on this data, Banco
Galicia has calculated a range of estimated loan losses for non-performing
consumer loans.

11
<PAGE>

<TABLE>
<CAPTION>
                                December 31, 2001      December 31, 2000         June 30, 2000           June 30, 1999
                                 High        Low        High        Low         High        Low         High        Low
<S>                           <C>         <C>        <C>         <C>         <C>         <C>         <C>         <C>
Non-Performing Consumer
Loans..................       Ps. 176.6   Ps. 151.4  Ps. 142.1   Ps. 114.7   Ps. 155.0   Ps. 86.4    Ps. 173.3   Ps. 95.9
</TABLE>

     Non-Performing Commercial Loans

The non-performing commercial loan portfolio is defined as representing the
following portfolio under the Argentine Central Bank classification system:

o    "With Problems"
o    "High Risk of Insolvency"
o    "Uncollectible"

For the non-performing commercial loans Banco Galicia applied the procedures
required by SFAS 114.

For loans that were not collateral dependent, the expected future cash flows to
be received from the loans were discounted using the interest rate on the loan
at the time of the loan impairment.

Loans that were collateral dependent, and where there was an expectation that
the loan balance would be recovered via the exercise of collateral, were valued
using the fair value of the collateral. In addition, in order to assess the fair
value of collateral, Banco Galicia has discounted collateral valuations, due to
the extended period of time that it can take to foreclose assets under the
Argentine judicial system.

     Summary

The following table identifies the high and low of loan loss reserves for the
periods indicated.

<TABLE>
<CAPTION>
                                    December 31, 2001    December 31, 2000       June 30, 2000       June 30, 1999
                                     High      Low        High        Low       High       Low       High      Low

<S>                               <C>        <C>        <C>         <C>        <C>       <C>        <C>      <C>
Performing Commercial Loans...    Ps.131.0   Ps. 12.8   Ps.  39.4   Ps. 14.2   Ps. 24.4  Ps. 15.1   Ps. 9.9  Ps.  4.6

Performing Consumer Loans.....    Ps. 94.2   Ps. 83.2    Ps. 84.5   Ps. 68.5   Ps. 75.2  Ps. 41.3  Ps. 75.0  Ps. 41.2

Non-Performing Consumer Loans.    Ps.176.6   Ps.151.4    Ps. 142.1  Ps. 114.7  Ps.155.0   Ps. 86.4  Ps.173.3 Ps. 95.9

Non-Performing Commercial Loans   Ps.548.3   Ps.548.3    Ps. 69.3   Ps. 69.3   Ps.  64.5  Ps. 64.5  Ps. 83.8 Ps. 83.8
                                  --------   --------    --------   --------   ---------  --------  --------  --------
Total.........................    Ps.950.1   Ps.795.7    Ps.335.3   Ps.266.7   Ps.319.1   Ps.207.3  Ps.342.0 Ps.225.5
                                  ========   ========    ========   ========   =========  ========  ======== =========

Loan Loss Reserve under
     U.S. GAAP................    Ps.882.4                     Ps.280.5           Ps. 277.0           Ps. 299.6
                                  ========                     ========           =========           =========
</TABLE>

For the years ended June 30, 1999 and 2000, Banco Galicia expected that the
loans loss reserve under U.S. GAAP would fall more toward the midpoint of the
range after the charge-offs of accumulated unsecured consumer loans. As of
December 31, 2000, Banco Galicia expected that the loans loss reserve would fall
more toward the lower end of the range due to the increase of the impaired
consumer loans and to the positive variation of the transfer of impaired loans
covered by a 100% allowance, to the memorandum accounts. As of December 31,
2001, Banco Galicia expected that the loans loss reserve under U.S. GAAP would
fall more toward to the midpoint of the range after the charge-offs of
accumulated unsecured consumer loans and the increase of the loan loss reserve
under FAS 114 of the impaired loans.

In addition to assessing the reasonableness of the loan loss reserve as
described above, Banco Galicia makes an overall determination of adequacy of
each period's reserve based on such ratios as:

o    Loan loss reserves as a percentage of non-accrual loans
o    Loan loss reserves as a percentage of total amounts past due
o    Loan loss reserves as a percentage of past-due unsecured amounts.

12
<PAGE>

                                    PART III

Item 18. Financial Statements

Report of the Independent Accountants

Consolidated Balance Sheets as of December 31, 2001, December 31, 2000 and June
30, 2000

Consolidated Statements of Income for the year ended December 31, 2001, for the
six-months ended December 31, 2000 and for the fiscal years ended June 30, 2000
and 1999

Consolidated Statements of Cash Flows for the year ended December 31, 2001, for
the six-months ended December 31, 2000 and for the fiscal years ended June 30,
2000 and 1999

Consolidated Statements of Changes in Shareholders' Equity for the year ended
December 31, 2001, for the six-months ended December 31, 2000 and for the fiscal
years ended June 30, 2000 and 1999

Notes to the Consolidated Financial Statements

Item 19. Financial Statements and Exhibits

(a)  Financial Statements.

(b)  Exhibits

     2.2  Statement Under Oath of Principal Executive Officer Regarding Facts
          and Circumstances Relating to Exchange Act Filings
     2.3  Statement Under Oath of Principal Financial Officer Regarding Facts
          and Circumstances Relating to Exchange Act Filings

13
<PAGE>

                                   SIGNATURES

Pursuant to the requirements of Section 12 of the Securities Exchange Act of
1934, the registrant certifies that it meets all of the requirements for filing
on Form 20-F and has duly caused this Annual Report to be signed on its behalf
by the undersigned, thereunto duly authorized.

                                    GRUPO FINANCIERO GALICIA S.A.

                                    By /s/ Abel Ayerza
                                      ---------------------------------------
                                      Name:  Abel Ayerza
                                      Title: Chairman of the Board and Chief
                                             Executive Officer

Date:  November 26, 2002


                Statement of Principal Executive Officer Pursuant
                       to Rule 13a-14 of the Exchange Act

     I, Abel Ayerza, the principal executive officer of Grupo Financiero
Galicia, S.A., certify that:

     1.   I have reviewed the annual report on Form 20-F filed on July 1, 2002,
          as amended by this Form 20-F/A (together, the "annual report") of
          Grupo Financiero Galicia S.A.;

     2.   Based on my knowledge, this annual report does not contain any untrue
          statement of a material fact or omit to state a material fact
          necessary to make the statements made, in light of the circumstances
          under which such statements were made, not misleading with respect to
          the period covered by this annual report; and

     3.   Based on my knowledge, the financial statements, and other financial
          information included in this annual report, fairly present in all
          material respects the financial condition, results of operations and
          cash flows of the registrant as of, and for, the periods presented in
          this annual report.

Date:  November 26, 2002

                                             /s/ Abel Ayerza
                                             -----------------------------------
                                             Name:  Abel Ayerza
                                             Title:  Chairman of the Board and
                                                     Chief Executive Officer


                Statement of Principal Financial Officer Pursuant
                       to Rule 13a-14 of the Exchange Act

     I, Pedro A. Richards, the principal financial officer of Grupo Financiero
Galicia, S.A., certify that:

     1.   I have reviewed the annual report on Form 20-F filed on July 1, 2002,
          as amended by this Form 20-F/A (together, the "annual report") of
          Grupo Financiero Galicia S.A.;

     2.   Based on my knowledge, this annual report does not contain any untrue
          statement of a material fact or omit to state a material fact
          necessary to make the statements made, in light of the circumstances
          under which such statements were made, not misleading with respect to
          the period covered by this annual report; and

     3.   Based on my knowledge, the financial statements, and other financial
          information included in this annual report, fairly present in all
          material respects the financial condition, results of operations and
          cash flows of the registrant as of, and for, the periods presented in
          this annual report.

Date:  November 26, 2002

                                               /s/ Pedro A. Richards
                                               ---------------------------------
                                               Name: Pedro A. Richards
                                               Title: Managing Director
                                                     (Chief Financial Officer)
<PAGE>

                 GRUPO FINANCIERO GALICIA S.A. AND SUBSIDIARIES

                   INDEX TO CONSOLIDATED FINANCIAL STATEMENTS

                                                                            Page

Report of the Independent Accountants as of and for the
fiscal year ended December 31, 2001, the six months ended
December 31, 2000 and the fiscal years ended June 30, 2000
and 1999.....................................................................F-2

Consolidated Balance Sheets as of December 31, 2001, December
31, 2000 and June 30, 2000...................................................F-4

Consolidated Statements of Income for the year ended December
31, 2001, for the six months ended December 31, 2000 and for
fiscal years ended June 30, 2000 and 1999....................................F-7

Consolidated Statements of Cash Flows for the year ended December
31, 2001, for the six months ended December 31, 2000 and for the
fiscal years ended June 30, 2000 and 1999....................................F-9

Consolidated Statements of Changes in Shareholders' Equity for
the year ended December 31, 2001, for the six months ended December
31, 2000 and for the fiscal years ended June 30, 2000 and 1999..............F-11

Notes to the Consolidated Financial Statements..............................F-12




                                      F-1


<PAGE>


                      REPORT OF THE INDEPENDENT ACCOUNTANTS



To the Chairman and Directors of
Grupo Financiero Galicia S.A.


We have audited the consolidated balance sheets of Grupo Financiero Galicia S.A.
and  subsidiaries at December 31, 2001 and 2000 and of Banco de Galicia y Buenos
Aires  S.A.  and  subsidiaries  at June 30,  2000 and the  related  consolidated
statements  of income,  changes in  shareholders'  equity and cash flows for the
year ended December 31, 2001,  for the six-month  period ended December 31, 2000
and for the years ending June 30, 2000 and 1999,  as well as their  accompanying
notes  1 to 40.  These  consolidated  financial  statements  and  notes  are the
responsibility of the Company's management.  Our responsibility is to express an
opinion on these consolidated financial statements.

We conducted our audits in accordance with auditing standards generally accepted
in both  Argentina and the United  States and performed the auditing  procedures
required by the Banco Central de la Republica  Argentina (the "Argentine Central
Bank").  Those  standards  require  that we plan and  perform an audit to obtain
reasonable assurance as to whether the financial statements are free of material
misstatement.  An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements.  An audit also includes
assessing the  accounting  principles  used and  significant  estimates  made by
management,  as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.

As mentioned in Note 2, the accompanying  consolidated financial statements have
been prepared in accordance  with accounting  rules  prescribed by the Argentine
Central Bank,  which differ in certain  respects  from,  and is a  comprehensive
basis  of  accounting  other  than,   Argentine  generally  accepted  accounting
principles applicable to enterprises in general.

The presentation of the financial  statements and notes thereto are presented in
accordance  with  Argentine  Central Bank rules that differ in certain  material
respects from U.S. GAAP and from  disclosure  requirements of the Securities and
Exchange Commission.  A description of these differences applicable for the year
ended  December 31, 2001, for the six months ended December 31, 2000 and for the
years  ending June 30, 2000 and 1999 are included in notes 24, 27, 31, 37 and 39
to the consolidated financial statements.

In our opinion, the consolidated  financial statements referred to above present
fairly,  in all material  respects,  the financial  position of Grupo Financiero
Galicia S.A. and  subsidiaries at December 31, 2001 and 2000, and the results of
operations,  changes in  shareholder's  equity and cash flows for the year ended
December 31, 2001 and for the six-month  period ended  December 31, 2000 and the
financial  position of Banco de Galicia y Buenos Aires S.A. and  subsidiaries at
June 30, 2000,  and the results of their  operations,  changes in  shareholders'
equity and cash flows for each of the two fiscal years ended June 30,  2000,  in
conformity  with rules  prescribed  by the Argentine  Central  Bank.  Such rules
prescribed  by the  Argentine  Central  Bank  differ in  certain  respects  from
generally  accepted  accounting   principles  in  the  United  States  and  from
presentation  and  disclosure   requirements  of  the  Securities  and  Exchange
Commission's  regulations,  as disclosed in notes 27 and 39 to the  consolidated
financial statements.


                                       F-2

<PAGE>


The accompanying  consolidated financial statements as of December 31, 2001 have
been  prepared  assuming that Grupo  Financiero  Galicia S.A. will continue as a
going concern. As mentioned in note 1 to the accompanying consolidated financial
statements,  the  country  of  Argentina  has been  subject to a  financial  and
economic  crisis that caused  significant  measures to be taken by the Argentine
Government  beginning at the end of 2001 and continuing  into 2002.  Many of the
measures  adopted  by  the  Argentine  Government   significantly  affected  the
liquidity,  solvency and  profitability  of the financial  system as a whole and
have adversely  affected  other  businesses  and  individuals in Argentina.  The
Argentine  Government and Central Bank have adopted additional measures designed
to moderate such effects while fostering a restructuring of the financial system
and  attempting  to stay  the  economic  downturn.  Current  regulations  of the
Argentine  Government and Central Bank are being interpreted and implemented and
further  regulations  are being  considered.  In addition,  the  Company's  most
significant  subsidiary  (Banco de Galicia y Buenos  Aires  S.A.,  "the  Bank"),
comprising  approximately  99.6% of the Company's  total  assets,  has filed and
received  approval from the  Argentine  Central  Bank,  of a  restructuring  and
rehabilitation plan, which call for among other things, certain restructuring on
external  debt  and  an  increase  in  capital.  It  is  uncertain  whether  the
restructuring of the financial system as a whole, the other measures designed to
stay the economic downturn and the Bank's  rehabilitation and restructuring plan
will be successful  enough to allow the Company to continue its  operations  and
meet its solvency and liquidity  ratios required by the Argentine  Central Bank.
This situation and the financial  outcome of the  uncertainties and its possible
impact on the  recoverability  of the Company's assets and the settlement of the
Company's  liabilities  give rise to a  substantial  doubt that the  Company can
continue  as a  going  concern.  The  consolidated  financial  statements  as of
December 31, 2001 do not include any  adjustment  that might reflect the outcome
of these uncertainties.






                                                          PricewaterhouseCoopers
Buenos Aires, Argentina
September  10,  2002,  except for note 1, as to which the date is  November  20,
2002.






                                      F-3


<PAGE>


                 Grupo Financiero Galicia S.A. and Subsidiaries

                           Consolidated Balance Sheets
               As of December 31, 2001 and 2000 and June 30, 2000
                   (Expressed in thousands of Argentine pesos)


<TABLE>
<CAPTION>

                                                                    Grupo Galicia                   Banco Galicia
                                                        --------------------------------------   --------------------
                                                                    December 31,                      June 30,
                                                        --------------------------------------   --------------------
                                                               2001                2000                 2000
                                                        -------------------  -----------------   --------------------
<S>                                                     <C>                  <C>                 <C>

ASSETS
A. Cash and due from banks
    Cash..............................................  Ps.        242,365   Ps.      356,777     Ps.        285,018
    Banks and correspondents..........................             274,268            263,132                338,514
    Other.............................................                 668                161                  1,884
                                                        -------------------  -----------------   --------------------
                                                        Ps.        517,301   Ps.      620,070     Ps.        625,416
B. Government and corporate securities
    Holdings of investment account securities........                    -              4,581                 98,769
    Holdings of trading securities....................              58,538             72,233                311,924
    Unlisted government securities....................              65,593                545                    624
    Investments in listed corporate securities........               5,894              5,972                  8,034
    Allowances........................................               (116)              (116)                  (116)
                                                        -------------------  -----------------   --------------------
                                                        Ps.        129,909   Ps.       83,215     Ps.        419,235
C. Loans
    To the non-financial government sector............           3,974,437          2,615,335              2,503,694
    To the financial sector...........................              86,607            508,924                361,223
    To the non-financial private sector and residents
    abroad............................................           5,540,870          6,387,676              6,723,654
      Overdrafts......................................             368,076            439,336                790,950
      Notes...........................................           1,764,903          2,245,759              2,454,674
      Mortgage loans..................................           1,496,852          1,590,485              1,357,814
      Pledge loans....................................             382,069            397,457                389,647
      Consumer loans..................................             264,753            368,548                330,364
      Credit card loans...............................             851,052            756,610                655,753
      Others..........................................             260,182            476,576                639,125
      Accrued Interest and quotation differences
      Receivable......................................             177,958            160,395                142,272
      Document interest...............................            (24,974)           (44,001)               (36,945)
      Unallocated collections                                          (1)            (3,489)
    Allowances........................................           (476,651)          (270,495)              (261,799)
                                                        -------------------  -----------------   --------------------
                                                        Ps.      9,125,263   Ps.    9,241,440     Ps.      9,326,772

D. Other receivables resulting from financial brokerage
    Argentine Central Bank............................              61,102          2,712,765              2,157,744
    Amounts receivable for spot and forward sales
    to be settled.....................................             178,107          1,089,459              1,070,227
    Securities receivable under spot and forward
    purchases to be settled...........................             721,481            881,605                839,870
    Premiums on options bought........................                  71                558                  1,045
    Unlisted negotiable obligations...................              81,018            111,773                129,608
    Other.............................................             705,318          1,073,340                648,192
    Allowances........................................             (7,463)           (10,413)               (16,542)
                                                        -------------------  -----------------   --------------------
                                                        Ps.      1,739,634   Ps.    5,859,087    Ps.       4,830,144



                 The accompanying notes are an integral part of these consolidated financial statements



</TABLE>

                                       F-4

<PAGE>


                 Grupo Financiero Galicia S.A. and Subsidiaries

                           Consolidated Balance Sheets
               As of December 31, 2001 and 2000 and June 30, 2000
                   (Expressed in thousands of Argentine pesos)

<TABLE>
<CAPTION>
                                                                    Grupo Galicia                    Banco Galicia
                                                       -----------------------------------------   -------------------
                                                                     December 31,                       June 30,
                                                       -----------------------------------------   -------------------
                                                               2001                 2000                  2000
                                                       ---------------------  -------------------   -------------------
<S>                                                    <C>                    <C>                   <C>
ASSETS (Continued)
E. Assets under financial leases
     Assets under financial leases.................   Ps.           44,748   Ps.        17,333     Ps.         8,241
     Allowances....................................                  (511)               (182)                  (84)
                                                      ---------------------  -------------------   -------------------

                                                      Ps.           44,237   Ps.        17,151     Ps.         8,157
F. Equity investments in other companies
     In financial institutions.....................                  1,028              16,942                23,952
     Other  .......................................                 82,133              90,602                97,846
     Allowances....................................               (15,242)             (9,611)               (7,074)
                                                      ---------------------  -------------------   -------------------
                                                      Ps.           67,919   Ps.        97,933     Ps.       114,724
G. Miscellaneous receivables
     Debtors for sale of assets....................                    740              12,461                   492
     Other.........................................                405,808             297,469               275,896
     Accrued interest on debtors for sale of
     assets receivable.............................                     14                  13                     4
     Other accrued interest receivable.............                    130                  71                     7
     Allowances....................................               (25,211)            (10,549)               (5,122)
                                                      ---------------------  -------------------   -------------------
                                                      Ps.          381,481   Ps.       299,465     Ps.       271,277

H. Fixed assets....................................                283,324             263,855               260,064

I. Miscellaneous assets............................                105,879              81,636                73,911

J. Intangible assets
     Goodwill......................................                126,455              84,241                69,146
     Organization and development expenses.........                 99,347              85,197                78,971
                                                      ---------------------  -------------------   -------------------
                                                      Ps.          225,802   Ps.       169,438     Ps.       148,117

K. Unallocated items.............................                   30,978               7,847                 3,925
                                                      --------------------- -------------------    ------------------
                       Total Assets................   Ps.       12,651,727   Ps.    16,741,137     Ps.    16,081,742
                                                      ===================== ===================    ==================



                 The accompanying notes are an integral part of these consolidated financial statements


</TABLE>

                                       F-5

<PAGE>



                 Grupo Financiero Galicia S.A. and Subsidiaries

                           Consolidated Balance Sheets
               As of December 31, 2001 and 2000 and June 30, 2000
                   (Expressed in thousands of Argentine pesos)


<TABLE>
<CAPTION>

                                                                     Grupo Galicia                   Banco Galicia
                                                        ----------------------------------------   -------------------
                                                                     December 31,                       June 30,
                                                        ----------------------------------------   -------------------
                                                               2001                 2000                  2000
                                                        -------------------  -------------------   -------------------
<S>                                                     <C>                  <C>                   <C>
     LIABILITIES AND SHAREHOLDERS' EQUITY
L. Deposits
   Non-financial government sector....................  Ps.         11,528   Ps.          9,448    Ps.          9,220
   Financial sector...................................              17,614                3,848                 2,535
   Non-financial private sector and residents abroad..           6,098,854            8,890,478             8,731,797
     Current accounts.................................             846,187              609,787               606,069
     Saving accounts..................................           1,470,678            1,271,849             1,334,652
     Time deposits....................................           3,148,110            6,677,631             6,473,832
     Investment accounts..............................              80,598               11,150                13,150
     Other............................................             493,440              237,649               225,319
     Accrued interest and quotation differences
     payable .........................................              59,841               82,412                78,775
                                                       --------------------- -------------------   -------------------
                                                        Ps.      6,127,996   Ps.      8,903,774    Ps.      8,743,552

M. Other liabilities resulting from financial
   brokerage
   Argentine Central Bank
     Liquidity assistance notes.......................           1,234,000                    -                     -
     Other............................................             323,056                4,450                 5,945
   Banks and international entities...................             752,070              903,352               985,246
   Unsubordinated negotiable obligations..............             839,177            1,222,100             1,243,815
   Amounts payable for spot and forward purchases
   to be settled......................................             636,893              853,899               845,527
   Securities to be delivered under spot and
   forward sales to be settled........................             171,710            2,435,179             2,179,053
   Loans from domestic financial institutions.........             159,859              162,802               162,452
   Other..............................................             627,253              598,372               298,770
   Accrued interest and quotation differences
   payable............................................              37,842               48,742                38,478
                                                       --------------------- -------------------   -------------------
                                                        Ps.      4,781,860   Ps.      6,228,896    Ps.      5,759,286
N. Miscellaneous liabilities
   Dividends payable..................................                 214                    4                     3
   Directors' and Syndics' fees payable...............               2,841               11,710                35,608
   Other..............................................             166,737              140,453               169,403
   Accrued adjustments and interest payable...........                   5                   12                     -
                                                       --------------------- -------------------   -------------------
                                                        Ps.        169,797   Ps.        152,179    Ps.        205,014

O. Provisions.........................................              34,637               16,069                14,866
P. Unallocated items..................................              11,302               10,534                 2,879
Q. Minority interests.................................             117,639              108,856                23,996
                                                        -------------------  -------------------   -------------------
             Total Liabilities........................  Ps.     11,243,231   Ps.     15,420,308    Ps.     14,749,593
                                                       --------------------- -------------------   -------------------

   SHAREHOLDERS' EQUITY ..............................           1,408,496            1,320,829             1,332,149
                                                        -------------------  -------------------   -------------------
             Total Liabilities and Shareholders'
             Equity...................................  Ps.     12,651,727   Ps.     16,741,137    Ps.     16,081,742
                                                        ===================  ===================   ===================


                 The accompanying notes are an integral part of these consolidated financial statements


</TABLE>

                                       F-6

<PAGE>

                 Grupo Financiero Galicia S.A. and Subsidiaries

                        Consolidated Statements of Income
      For the fiscal year ended December 31, 2001, for the six-months ended
    December 31, 2000 and for the fiscal years ended June 30, 2000 and 1999.
                  (Expressed in thousands of Argentine pesos)


<TABLE>
<CAPTION>

                                                                 Grupo Galicia                     Banco Galicia
                                                       -------------------------------   -------------------------------
                                                                        Six-months
                                                        Year ended    ended December
                                                        December 31,        31,               Years ended June 30,
                                                       -------------- ----------------   -------------------------------
                                                            2001            2000              2000             1999
                                                       -------------- ----------------   --------------  ---------------
<S>                                                    <C>            <C>                <C>             <C>
A. Financial income
   Interest on cash and due from banks..............   Ps.    28,925  Ps.      24,581    Ps.    47,297   Ps.     48,373
   Interest on loans granted to the financial
   sector...........................................          43,727           18,720           36,884           32,289
   Interest on overdrafts...........................         116,391           59,109          109,942          116,665
   Interest on notes................................         629,778          297,697          542,425          372,247
   Interest on mortgage loans.......................         201,239           89,162          148,958          148,269
   Interest on pledge loans.........................          41,568           23,411           47,208           65,664
   Interest on credit card loans....................         166,310           74,555          177,453          141,176
   Interest on other loans..........................         170,292           71,276           96,359          113,736
   Interest income from other receivables
   resulting from financial brokerage...............          49,597           20,003           38,749           58,892
   Net income from government and corporate
   securities.......................................          71,661           74,030          137,774          116,037
   Net income from options..........................               -                -              179                -
   Net income from guaranteed loans - Decree No.
   1387/01..........................................          32,442                -                -                -
   Others...........................................          75,868           67,698          116,155           55,777
                                                       -------------- ----------------   --------------  ---------------
                                                       Ps. 1,627,798  Ps.     820,242    Ps. 1,499,383   Ps.  1,269,125

B. Financial expenses
   Interest on current accounts.....................          23,967                -                -               63
   Interest on savings accounts.....................          16,927           11,604           24,999           22,086
   Interest on time deposits........................         599,752          252,885          437,577          319,600
   Interest on loans from the financial sector......           7,183              558            4,932            3,812
   Interest expense from other liabilities
   resulting from financial brokerage...............         196,893          119,671          198,127          196,856
   Other interest ..................................          38,847            9,144           16,294           26,919
   Net loss on options..............................             518            1,017                -           22,837
   Others...........................................          80,816           47,913           94,457          104,378
                                                       -------------- ----------------   --------------  ---------------
                                                       Ps.   964,903  Ps.     442,792    Ps.   776,386   Ps.    696,551


C. Gross brokerage margin...........................         662,895          377,450          722,997          572,574

   Loan loss provision .............................         457,695          123,681          249,466          216,038

D. Income from services
   In relation to lending transactions..............         149,637           58,160           63,426           45,486
   In relation to borrowing transactions............         119,289           56,685          111,919          113,302
   Other commissions................................          46,375           19,124           27,034           15,854
   Other............................................         209,689          100,931          223,057          202,813
                                                       -------------- ----------------   --------------  ---------------
                                                       Ps.   524,990  Ps.     234,900    Ps.   425,436   Ps.    377,455

E. Expenses for services
   Commissions......................................          47,515           21,859           42,502           43,552
   Other............................................          49,647           21,759           40,648           39,729
                                                       -------------- ----------------   --------------  ---------------
                                                       Ps.    97,162  Ps.      43,618    Ps.    83,150   Ps.     83,281


                 The accompanying notes are an integral part of these consolidated financial statements


</TABLE>

                                       F-7


<PAGE>


                 Grupo Financiero Galicia S.A. and Subsidiaries

                        Consolidated Statements of Income
      For the fiscal year ended December 31, 2001, for the six-months ended
    December 31, 2000 and for the fiscal years ended June 30, 2000 and 1999.
                  (Expressed in thousands of Argentine pesos)


<TABLE>
<CAPTION>
                                                                 Grupo Galicia                       Banco Galicia
                                                       ---------------------------------   -------------------------------
                                                                          Six-months
                                                        Year ended      ended December
                                                        December 31,          31,               Years ended June 30,
                                                       --------------   ----------------   -------------------------------
                                                            2001              2000              2000             1999
                                                       ---------------  ----------------   --------------  ---------------
<S>                                                    <C>              <C>                <C>             <C>
F. Administrative expenses
   Personnel expenses..............................    Ps.    317,510    Ps.    155,997    Ps.    296,665  Ps.     290,515
   Directors' and syndics' fees....................            16,078            11,924            36,696           35,246
   Other fees......................................            11,457             7,575            15,810           13,928
   Advertising and publicity.......................            24,748            15,108            27,630           21,148
   Taxes...........................................            38,355            10,579            23,638           18,368
   Other operating expenses........................           169,387            79,050           161,608          146,828
   Other...........................................            44,209            21,655            45,544           35,812
                                                      ----------------  ----------------   --------------  ---------------
                                                      Ps.     621,744   Ps.     301,888    Ps.    607,591  Ps.     561,845

   Net income from financial brokerage.............            11,284           143,163           208,226           88,865

G. Minority interests..............................          (10,056)           (6,308)               298         (10,962)

H. Miscellaneous income
   Net income on long term investments.............            15,865                 -                 -          128,935
   Penalty interest................................             3,172             1,615             4,527            5,343
   Loans recovered and allowances reversed.........            38,089            22,614            29,714           11,530
   Other...........................................           273,920            16,650            30,986           37,031
                                                      ----------------  ----------------   --------------  ---------------
                                                      Ps.     331,046   Ps.      40,879    Ps.     65,227  Ps.     182,839

I. Miscellaneous losses
   Net loss on long-term investments..............                 -              4,447             5,481                -
   Penalty interest and charges in favor of the
   Argentine Central Bank.........................                 49               156               334              319
   Loan loss provision from miscellaneous
   receivables and other provisions...............             37,898             9,665            10,198           14,643
   Other..........................................            102,088            21,183            27,188           22,728
                                                      ----------------  -----------------  ---------------  ---------------
                                                      Ps.     140,035   Ps.      35,451    Ps.     43,201   Ps.     37,690

   Net income before tax..........................            192,239           142,283           230,550          223,052

J. Income tax.....................................           (72,182)          (52,373)          (74,226)         (72,455)
                                                      ----------------  -----------------  ---------------- ----------------
   Net income for the year .......................    Ps.     120,057   Ps.      89,910    Ps.    156,324   Ps.    150,597
                                                      ================  =================  ================ ================

   Net income per common share (note 24)..........              0,110             0,088             0,133            0,129

   Net income per common share assuming
   full dilution (note 24)........................              0,110             0,088             0,133            0,129



                 The accompanying notes are an integral part of these consolidated financial statements


</TABLE>

                                       F-8

<PAGE>

                 Grupo Financiero Galicia S.A. and Subsidiaries

                      Consolidated Statements of Cash Flows
      For the fiscal year ended December 31, 2001, for the six-months ended
    December 31, 2000 and for the fiscal years ended June 30, 2000 and 1999
                   (Expressed in thousands of Argentine pesos)


<TABLE>
<CAPTION>

                                                              Grupo Galicia                       Banco Galicia
                                                       ---------------------------------   -------------------------------
                                                                          Six-months
                                                        Year ended      ended December
                                                        December 31,          31,                Year ended June 30,
                                                       --------------   ----------------   -------------------------------
                                                            2001              2000              2000             1999
                                                       ---------------  ----------------   ---------------  ----------------
<S>                                                    <C>              <C>                <C>             <C>
   Cash provided by operating activities:
   Net income.......................................   Ps.    120,057   Ps.     89,910     Ps.    156,324   Ps.     150,597
   Adjustments to reconcile net income to net
   cash from operating activities:
   Depreciation of bank premises and equipment and
   Miscellaneous assets.............................           28,837           12,936             25,839           20,613
   Amortization of intangible assets................           53,143           21,020             42,640           73,518
   Increase in allowances for loan and other
   losses, net of reversals and monetary effects...           478,251          126,808            236,603          193,566
   Equity (income) loss of unconsolidated
   subsidiaries.....................................          (5,259)          (2,870)              4,519         (92,473)
   Loss on sale of premises and equipment...........            3,494              574              1,095                8
   Accretion of discount on available-for-sale
   securities.......................................         (82,466)         (42,740)           (94,803)         (81,199)
   (Gain) Loss on sales of available-for-sale
   securities.......................................            (942)            (402)            (8,778)         (14,152)
   Decrease (Increase) in government securities -
   trading..........................................        (601,096)          237,887            181,127          622,965
   Increase (Decrease) in other assets..............          173,631            5,810            172,757        (159,524)
   (Decrease) Increase in other liabilities.........          999,582           85,955           (82,392)        (137,778)
                                                       ---------------  ----------------   ---------------  ---------------
   Net cash provided by operating activities........   Ps.  1,167,232   Ps.    534,888     Ps.    634,931    Ps.   576,141

   Cash provided by (used in) investing activities:
   Decrease (Increase) in loans, net................          474,023        (520,818)        (1,118,272)        (809,548)
   Sale of Galtrust I Securities....................                -           46,922                  -                -
   Increase in investments in other companies.......         (26,410)         (42,263)           (15,719)         (76,592)
   Cash dividends and capital repayments of
   available-for-sale securities....................           23,185           55,650            146,353          246,828
   Sales of investments in other companies..........           27,190            1,673              2,238           24,687
   Purchase of available-for-sale securities........        (187,431)         (90,166)        (1,198,244)        (426,188)
   Sale of available-for-sale securities............           91,414          185,148          1,223,469          105,696
   (Increase) Decrease in deposits at the Argentine
   Central Bank.....................................        1,355,293        (277,215)          (878,297)        (199,755)
   Additions to bank premises and equipment,
   miscellaneous, and intangible assets.............        (192,758)         (51,626)          (128,153)        (139,807)
   Proceeds of sales of premises and equipment......           19,006            4,173             10,861            9,575
                                                       ---------------  ----------------   ---------------  ---------------
   Net cash provided by (used in) investing
   activities.......................................   Ps.  1,583,512   Ps.  (688,522)     Ps.(1,955,764)   Ps.(1,265,104)

   Cash provided by (used in) financing activities:

   Cash dividends...................................         (37,127)          (8,150)           (34,868)        (21,688)

   Capital increase.................................            5,507              112                  -               -
   Increase (Decrease) in deposits, net.............      (2,763,112)          161,153            893,106         710,103
   Borrowings under credit facilities - long term...        1,801,926          263,202            146,367         249,213
   Payments on credit facilities - long term........      (1,344,815)        (247,527)           (58,103)       (320,253)
   Increase (Decrease) in short-term borrowings, net        (480,860)           61,802            107,219       (148,779)
   Decrease (Increase) in repurchase agreements.....         (35,032)         (82,739)            100,063          30,483
                                                       ---------------  ----------------   ---------------  --------------
   Net cash provided by (used in)  financing
   activities.......................................   Ps.(2,853,513)   Ps.    147,853     Ps.  1,153,784   Ps.   499,079

</TABLE>
     The accompanying notes are an integral part of these consolidated financial
     statements



                                       F-9

<PAGE>

                 Grupo Financiero Galicia S.A. and Subsidiaries

                Consolidated Statements of Cash Flows (continued)
                      Consolidated Statements of Cash Flows
         For the fiscal year ended December 31, 2001, for the six-month
    transition period ended December 31, 2000 and for the
                   fiscal years ended June 30, 2000 and 1999
                   (Expressed in thousands of Argentine pesos)


<TABLE>
<CAPTION>
                                                              Grupo Galicia                        Banco Galicia
                                                       ----------------------------------- --------------------------------
                                                                          Six-month
                                                        Year ended      transition period
                                                        December 31,    ended December 31,         Year ended June 30,
                                                       --------------   ------------------ --------------------------------
                                                            2001              2000              2000             1999
                                                       ---------------  ------------------ ---------------  ---------------
<S>                                                    <C>              <C>                <C>              <C>
   Net (decrease) increase in cash and cash
   equivalents......................................   Ps.  102,769)    Ps.     (5,781)     Ps. (167,049)    Ps.  (189,884)
   Cash and cash equivalents at the beginning
   of the year......................................         620,070            625,851           792,465           982,349
                                                      ----------------  ----------------   ---------------  ---------------
   Cash and cash equivalents at the end of the
   year.............................................  Ps.    517,301    Ps.     620,070     Ps.   625,416    Ps.    792,465

   Supplemental disclosures relative to cash flows:
   Interest paid....................................  Ps.    556,505    Ps.     311,872     Ps.   668,244    Ps.    613,023
   Income tax paid..................................          28,699             29,215            64,278             9,581


The transfer of loans to the "Galtrust I" Financial Trust during the six-month period ended December 31, 2000, amounting
to  Ps.443,302  and to the  "Galtrust  II, III, IV and V" Financial  Trusts  during the year ended  December 31, 2001 of
Ps.238,600,  and the swap of government debt  instruments into "Secured Loans" amounting to Ps.1,067,926 did not require
the movement of cash.


</TABLE>

     The accompanying notes are an integral part of these consolidated financial
     statements




                                      F-10

<PAGE>


                 Grupo Financiero Galicia S.A. and Subsidiaries

           Consolidated Statements of Changes in Shareholders' Equity
         For the year ended December 31, 2001, for the six-months ended
    December 31, 2000 and for the fiscal years ended June 30, 2000 and 1999
                   (Expressed in thousands of Argentine pesos)


<TABLE>
<CAPTION>
                                                             Banco Galicia
                             -------------------------------------------------------------------------------------------------------

                                                      Adjustments
                                                           to                                Unrealized                   Total
                                Capital    Paid in    Shareholders'     Profit reserves       Loss on     Retained     Shareholders'
                                 Stock     Capital       Equity        Legal       Other     Securities   Earnings        Equity
                             --------------------------------------------------  ---------------------------------------------------
<S>                          <C>          <C>         <C>           <C>          <C>        <C>          <C>          <C>
Balance at June 30, 1998     Ps.  371,942  Ps.310,678  Ps. 69,698   Ps. 111,132  Ps.     48  Ps.(17,773)  Ps.  242,920 Ps. 1,088,645
                             ------------  ----------  ----------   -----------  ----------  -----------  ------------ -------------
Distribution of retained
earnings
Approved by the
shareholders' meetings
  - Legal reserve                       -           -           -        24,475           -            -      (24,475)             -
  - Reserve provided by the
      Bylaws                            -           -           -             -          11            -          (11)             -
  - Cash dividends                      -           -           -             -           -            -      (21,688)      (21,688)
  - Stock distribution to
      shareholders'
      (33,474,783 shares)          33,475           -           -             -           -            -      (33,475)             -
Unrealized valuation
difference                              -           -           -             -           -      (6,861)             -       (6,861)
Cancellation of unrealized
valuation difference                    -           -           -             -           -       24,634      (24,634)             -
Net income for the year                 -           -           -             -           -            -       150,597       150,597
                             ------------  ----------  ----------   -----------  ----------  -----------  ------------ -------------
Balance at June 30, 1999     Ps.  405,417  Ps.310,678  Ps. 69,698   Ps. 135,607  Ps.     59  Ps.       -  Ps.  289,234 Ps. 1,210,693
                             ------------  ----------  ----------   -----------  ----------  -----------  ------------ -------------

Distribution of retained
earnings
Approved by the
shareholders' meeting

  - Legal reserve                       -           -           -        30,119           -           -       (30,119)             -
  - Reserve provided by the
    Bylaws                              -           -           -             -           7           -            (7)             -
  - Cash dividends                      -           -           -             -           -           -       (34,868)      (34,868)
  - Stock distribution to
    shareholders'
    (63,245,024 shares)            63,245           -           -             -           -           -       (63,245)             -
Net income for the year                 -           -           -             -           -           -        156,324       156,324
                             ------------  ----------  ----------   -----------  ----------  -----------  ------------ -------------
Balance at June 30, 2000     Ps.  468,662  Ps.310,678  Ps. 69,698   Ps. 165,726  Ps.     66  Ps.      -   Ps.  317,319 Ps. 1,332,149
                             ============  ==========  ==========   ===========  ==========  ===========  ============ =============
</TABLE>

<TABLE>
<CAPTION>

                                                              Grupo Galicia
                             -------------------------------------------------------------------------------------------------------
                                                      Adjustments
                                                           to                                Unrealized                   Total
                               Capital     Paid in    Shareholders'   Profit reserves         Loss on     Retained     Shareholders'
                                Stock      Capital       Equity     Legal        Other       Securities   Earnings        Equity
                             ------------ ----------- ------------ ------------  ---------- ------------ ------------ --------------
<S>                          <C>           <C>         <C>           <C>          <C>        <C>          <C>          <C>
Balance at June 30, 2000     Ps.  543,000  Ps. 15,250  Ps.      -    Ps.    890  Ps. 18,439  Ps.      -  Ps.  39,932   Ps.   617,511
Capital increase approved
by the extraordinary
meeting of shareholders-
held on May 16, 2000 (*)          549,407      64,001           -             -           -           -            -         613,408
Net income for the
six-month period                        -           -           -             -           -           -       89,910          89,910
                             ------------  ----------  ----------    ----------  ----------  ----------- -----------   -------------
Balance at December 31,
2000                         Ps.1,092,407  Ps. 79,251  Ps.      -    Ps.    890  Ps. 18,439  Ps.      -  Ps. 129,842   Ps. 1,320,829
                             ============  ==========  ==========    ==========  ==========  =========== ===========   =============
 Distribution of retained
 earnings approved by the
 shareholders meeting held
 on March 15, 2001
 -Legal Reserve (                       -          -            -         6,492           -           -      (6,492)               -
 -Reserve provided by the
  Bylaws                                -          -            -             -      90,000           -     (90,000)               -
 -Cash dividends                        -          -            -             -           -           -     (32,390)        (32,390)
  Net income for the year               -          -            -             -           -           -      120,057         120,057
                             ------------  ----------  ----------    ----------  ----------  ----------- ------------  -------------
Balance at December 31,
2001                         Ps.1,092,407  Ps. 79,251  Ps.      -    Ps.  7,382  Ps.108,439  Ps.      -  Ps. 121,017   Ps. 1,408,496
                             ============  ==========  ==========    ==========  ==========  =========== ============  =============


</TABLE>


     The accompanying notes are an integral part of these consolidated financial
     statements



                                      F-11
<PAGE>


                 Grupo Financiero Galicia S.A. and Subsidiaries

                 Notes to the Consolidated Financial Statements
   For the year ended December 31, 2001, for the six-month transition period
 ended December 31, 2000 and for the fiscal years ended June 30, 2000 and 1999
          (Expressed in thousands of Argentine pesos, except as noted)


1.   Basis of Presentation, Acquisitions, Estimates and Uncertainties

Grupo Financiero  Galicia S.A. ("Grupo Galicia" or "the Group") is a corporation
organized  under the laws of Argentina that acts as a holding  company for Banco
de  Galicia  y  Buenos  Aires  S.A.  ("Banco  Galicia"  or "the  Bank")  and its
subsidiaries.  Grupo Galicia was formed by the  controlling  shareholders of the
Bank on  September  14,  1999 to  consummate  an  exchange  of  shares  with the
shareholders  of Banco Galicia and establish Grupo Galicia as the Bank's holding
company.  Grupo  Galicia was formed with two classes of shares:  Class A shares,
which are entitled to 5 votes per share, and Class B shares,  which are entitled
to 1 vote per share.  To effect the exchange,  Grupo Galicia offered to exchange
Grupo Galicia Class B shares for all outstanding Banco Galicia Class B shares on
a 2.5-for-1 basis and to exchange Grupo Galicia ADSs for all  outstanding  Banco
Galicia ADSs on a 1-for-1 basis. The controlling  shareholders  retained all the
Class A shares.  As a result of the exchange,  which was consummated on July 26,
2000, the Company  became holder of 93.23% of the Bank's capital stock,  and the
remaining  6.77%  remained as a minority  interest in the Bank.  At December 31,
2001 the company's interest in Banco Galicia had increased to 93.59% as a result
of open market purchases.

The  consolidated  financial  statements of Grupo Galicia  include the financial
statements of the Bank, as the predecessor business for the two years ended June
30, 2000 and 1999 and the consolidated  financial statements of Grupo Galicia as
of December 31, 2001 and for the six-month  period ended  December 31, 2000. The
initial  retained  earnings  balance  reflected  in the  statement of changes in
shareholders'  equity  at July 1,  2000,  represents  the  participation  of the
controlling shareholders in the earnings of the Bank, net of certain incomes and
expenses incurred by Grupo Galicia.

Banco Galicia is a  private-sector  commercial  bank organized under the laws of
Argentina which provides general banking services,  mainly through its Argentine
branches,  to corporate  and retail  customers.  As of December 31, 2001,  Banco
Galicia provided banking services through its branches in the United States (New
York City) and Grand Cayman Island.  As a consequence of the prolonged  economic
crisis that Argentina was suffering,  that worsened in December 2001, and of the
economic policy  measures  adopted by the government in 2002, the Bank's foreign
branches are currently  being wound down. The Bank's  services  included,  until
December 31, 2001,  accepting deposits and granting loans in Argentine pesos and
U.S.  dollars.  The  end  of  the  Convertibility  regime  in  early  2002,  the
devaluation  of the currency and the measures  adopted by the government in 2002
have restricted Argentine banks' operations in U.S. dollars.

Grupo Galicia  consolidates  the  financial  statements of Banco Galicia and its
subsidiaries and all entities over which it has direct or indirect control.  The
consolidated  financial  statements  also include,  Net Investment S.A. (and its
subsidiaries),  Sudamericana Holding S.A. (and its subsidiaries),  Banco Galicia
Uruguay S.A.  (and its  subsidiaries),  Galicia  Capital  Markets S.A.  (and its
subsidiaries),  Galicia Factoring y Leasing S.A., Galicia Warrants S.A., Galicia
Valores  S.A.  Sociedad de Bolsa,  AgroGalicia  S.A.  and Galicia y Buenos Aires
(U.K.) Limited. All significant  intercompany  transactions have been eliminated
when consolidating.

As of December 31, 2001,  Banco Galicia  maintained the controlling  interest in
Tarjeta Naranja S.A.,  Tarjeta Comfiar S.A.,  Tarjetas Cuyanas S.A. and Tarjetas
del Mar S.A., all regional-credit-card  issuing companies through its subsidiary
Banco Galicia Uruguay S.A. (see note 38)



                                      F-12

<PAGE>

                 Grupo Financiero Galicia S.A. and Subsidiaries

                 Notes to the Consolidated Financial Statements
   For the year ended December 31, 2001, for the six-month transition period
 ended December 31, 2000 and for the fiscal years ended June 30, 2000 and 1999
          (Expressed in thousands of Argentine pesos, except as noted)


The  November  30, 2000 and May 31, 2000 and 1999  financial  statements  of the
regional-credit-card  companies,  which  present a reasonable  approximation  of
those companies' net worth and financial  condition and results of operations at
the end of the six-month  period ended December 31, 2000 and for the fiscal year
ended June 30,  2000,  have been used for  purposes  of  consolidation.  For the
fiscal  year  ended  December  31,  2001,  the  results  of  operations  of  the
regional-credit-card companies consolidated in the financial statements included
13 months of operations through December 31, 2001.

The preparation of financial  statements  requires  management to make estimates
and assumptions  that affect the reported  amounts of assets and liabilities and
disclosures of contingent assets and liabilities,  as of the financial statement
dates,  and the reported  amounts of revenues and expenses  during the reporting
periods.  Since management's  judgment involves making estimates  concerning the
likelihood  of future  events,  the  actual  results  could  differ  from  those
estimates,  which  will have a  positive  or  negative  effect on future  period
results.

ARGENTINE  ECONOMIC  SITUATION  AND ITS IMPACT ON GRUPO  GALICIA'S  ECONOMIC AND
FINANCIAL POSITION

Argentina is immersed in a critical,  unstable and uncertain economic situation.
The main  features of the current  economic  context are a major  external  debt
burden, the government's  default on most of its debt, a devaluation of the peso
of  approximately  75% since  December  2001,  the lack of available  foreign or
domestic  credit  both for the public and the  private  sectors,  high  interest
rates, a significant  decline in the financial system's deposit levels,  country
risk  indicators  far above normal  averages and an economic  recession that has
lasted almost four years.  This  situation has led to a significant  decrease in
the  demand  for  goods  and  services  and a  significant  rise in the level of
unemployment  and to a great deal of uncertainty as to how and when the economic
crisis will be stayed.  In addition,  this  situation  has led to many  measures
proposed by the Argentine  Government that have  contributed to an uncertain and
unstable economic and financial system in the country.  The potential effects on
the Company and its  customers  from this  economic  crisis and from the related
regulations of the Argentine  Government causes there to be an uncertainty as to
whether or not the Company will be able to continue to operate its business as a
going concern. No adjustments have been made to these financial  statements that
reflect the outcome of these uncertainties.

As from December 3, 2001, the Argentine  Government  issued measures designed to
restrict  the free  availability  and  circulation  of cash and the  transfer of
foreign currency abroad.

On January 6, 2002,  the  government  enacted Law 25,561  (Public  Emergency and
Foreign  Exchange  System Reform Law, the "Public  Emergency Law") that involved
profound  changes  to the  prevailing  economic  model  and  the  repeal  of the
Convertibility  Law in  force  since  March  1991.  On  February  3,  2002,  the
government   announced   new  economic   measures   through   Decree   No.214/02
(Restructuring of the Financial System) dated February 3, 2002,  complemented by
Decree  No.410/02  dated March 1, 2002 and Decree  No.260/02  (Exchange  Regime)
dated February 8, 2002, substantially modifying some of the measures implemented
by the Public  Emergency  Law. These decrees have been modified by other decrees
and  complemented  by  regulations  issued  by  various   regulatory   agencies.
Regulations currently outstanding may continue to be modified.

Listed below are some of the measures adopted by the government:



                                      F-13

<PAGE>

                 Grupo Financiero Galicia S.A. and Subsidiaries

                 Notes to the Consolidated Financial Statements
   For the year ended December 31, 2001, for the six-month transition period
 ended December 31, 2000 and for the fiscal years ended June 30, 2000 and 1999
          (Expressed in thousands of Argentine pesos, except as noted)


Foreign exchange system

On January 6, 2002 a new foreign exchange system was established that created an
official and a free foreign exchange market.  In principle,  export  activities,
import of goods and certain financial  activities that had first been subject to
rescheduling in order to extend the original due dates were to be carried out on
the official market.

The  remaining  transactions  relating to  remittance  or  collection of foreign
currency to or from abroad would be carried out on the free market.  The initial
exchange rate set for the official market was Ps.1.40 per U.S.$1.  Quotations on
the free market would be set by supply and demand.  On January 11, 2002 when the
foreign exchange market was opened,  Banco de la Nacion Argentina  published the
first  quotation  for the free market at Ps.1.60 per U.S.$1  (selling  rate) and
Ps.1.40 per U.S.$1 (buying rate).

On February 8, 2002 the government  issued Decree  No.260/02  (Exchange  Regime)
establishing a single free foreign  exchange  market system as from February 11,
2002, through which all transactions  involving the exchange of currency were to
be carried at a rate of exchange to be freely agreed, observing the requirements
to be laid down by the Argentine Central Bank.

At the same time,  controls  over the foreign  exchange  market and  transfer of
foreign  exchange  abroad  established  in December 2001 were  maintained.  This
system, with certain variations, is currently in place. In particular, transfers
abroad of a financial  nature,  involving  foreign  exchange,  require the prior
approval of the Argentine Central Bank.

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

a) Pursuant to the above mentioned Decree  No.214/02,  as from February 3, 2002,
all debts with the financial  system  denominated  in U.S.  dollars or any other
currency,  except as mentioned in subsection b) below, whatever their amount and
nature, were converted into pesos at the exchange rate of Ps.1 per U.S.$1 or its
equivalent  in  other  currency.  Furthermore,  as from  February  3,  2002,  an
inflation  adjustment  coefficient  (known as "CER" and based on  changes in the
consumer price index) and a maximum interest rate as determined by the Argentine
Central  Bank was  applied  to these  debts.  On May 6, 2002,  Decree  No.762/02
established  that  the  CER  coefficient  was to be  replaced  by an  adjustment
coefficient  based on the  variation  of  salaries  (known as "CVS") for certain
loans to individuals,  namely residential  mortgages on property  representing a
borrower's  sole family  residence,  personal  loans up to Ps.12,000  and pledge
loans up to Ps.30,000.  The  adjustment  would be applicable  beginning  October
2002.

Subsequently,   Law  25,642  approved  on  September  11,  2002,  postponed  the
application of the CER coefficient to September 30, 2002, for all obligations of
individuals or companies to give amounts of money of up to Ps.400,000.

b)  As  established  by  Decree   No.410/02,   loans  related  to  foreign-trade
transactions  granted by  financial  institutions  and the credit card  balances
related to purchases  made  outside  Argentina  and  obligations  and  contracts
subject to foreign  law were not  included in the  conversion  into pesos at the
rate of Ps.1 per  U.S.$1  established  by  article  1 of  Decree  No.214/02  and
remained denominated in U.S. dollars.




                                      F-14

<PAGE>

                 Grupo Financiero Galicia S.A. and Subsidiaries

                 Notes to the Consolidated Financial Statements
   For the year ended December 31, 2001, for the six-month transition period
 ended December 31, 2000 and for the fiscal years ended June 30, 2000 and 1999
          (Expressed in thousands of Argentine pesos, except as noted)


As a consequence of the measures  adopted by the  government  during 2002 and of
the crisis that affects Argentina and its effects on the economy in general, the
Bank has initiated a process of restructuring its commercial loan portfolio.

Public sector debt

Decree  No.471/02 dated March 8, 2002,  established  that the obligations of the
national,  provincial and municipal public sectors outstanding as of February 3,
2002,  denominated  in U.S.  dollars  or any other  currency,  governed  only by
Argentine law, would be converted at an exchange rate of Ps.1.40 per U.S. dollar
or its  equivalent  in other  foreign  currency  and  adjusted  applying the CER
coefficient.  In addition,  the obligations of the national government converted
into pesos as explained in the previous  sentence would accrue  interest at a 2%
annual rate as from February 3, 2002,  while the  obligations  of the provincial
and municipal governments would accrue interest at a 4% annual rate as from that
date.

On August 28, 2002,  Decree No.1579/02  established a voluntary  exchange of all
provincial government debt (including debt instruments that had been tendered in
the swap regulated by Decree  No.1387/01  for exchange for Secured Loans,  which
exchange has not been  completed) for new national  government  bonds secured by
15% of the tax collection  proceedings  shared by the federal and the provincial
governments.  The new bonds will be  peso-denominated,  with a 16-year maturity,
monthly capital  amortization  beginning after a 3-year period on March 4, 2005,
capital  adjustment by CER, a 2% annual  interest rate and will be negotiable in
exchanges  and  securities  markets of the country.  This  exchange has not been
completed yet.

Loans and obligations of the financial sector

As  established  by  Decree  No.410/02,  interbank  loans  in  foreign  currency
outstanding  at February 3, 2002 were  converted into pesos at a rate of Ps.1.40
per  U.S.$1 or its  equivalent  in other  currencies,  or at the single and free
market  exchange rate, as determined by the Argentine  Central Bank depending on
the type of operation.  Through its Communique  "A" 3507, the Argentine  Central
Bank established that the only obligations excluded from this pesification would
be those originated in transactions with second-floor  financial institutions in
order to finance or prefinance  customers'  import and export  transactions  and
expenses  related  to  those   transactions.   These  obligations  would  remain
denominated in foreign currency and would be payable at the free exchange rate.

Deposits and obligations with the public and private sectors

Under the terms of Decree  No.214/02,  as from  February 3, 2002,  deposits  and
obligations   in  U.S.   dollars  or  other  foreign   currencies  in  financial
institutions  were  converted  into pesos at the  exchange  rate of Ps.1.40  per
U.S.$1 or its  equivalent  in such  other  currency.  Furthermore,  restrictions
imposed  in  December  2001 on the  availability  of  deposits  (the  so  called
"corralito") were maintained for balances in  peso-denominated  current accounts
and savings accounts, with certain exceptions,  and it was established that time
deposits both peso- and U.S.  dollar-denominated and dollar-denominated deposits
in savings  accounts and current  accounts would be restructured and returned to
their owners in  peso-denominated  installments,  with the amounts and due dates
depending  on  the  balances  recorded.  This  restructuring  was  regulated  by
Resolution No.6/02 of the Ministry of Economy.



                                      F-15

<PAGE>


                 Grupo Financiero Galicia S.A. and Subsidiaries

                 Notes to the Consolidated Financial Statements
   For the year ended December 31, 2001, for the six-month transition period
 ended December 31, 2000 and for the fiscal years ended June 30, 2000 and 1999
          (Expressed in thousands of Argentine pesos, except as noted)


As from February 3, 2002, the CER coefficient and annual nominal  interest rates
of at least 2% began to be applied to  restructured  deposits  that were  dollar
denominated  in  origin,   and  those   restructured   deposits   originated  in
peso-denominated  deposits  began to accrue an annual  interest rate of at least
7%. On March 13, 2002, Decree No.494/02  established,  among others, that owners
of such deposits could opt to receive government bonds in substitution for them.

As per Resolution  No.46/02 of the Ministry of Economy,  depositors were offered
the option  described in the preceding  paragraph up to and including  April 30,
2002. This date was postponed and this first exchange was substituted by another
one  regulated by Decree  No.905/02  passed on June 1, 2002,  and  complementary
rules. Decree No.905/02  established a mechanism pursuant to which any depositor
of restructured deposits and demand deposits, as well as all of those depositors
that  participated in the voluntary  exchange regime  previously  established by
Decree  No.494/02,  were  initially  given a 30-day  option  to  exchange  their
deposits for new Argentine  government bonds the terms of which are set forth in
Decree No.905/02.  These were: a  peso-denominated  bond maturing in 2007 (Boden
2007) and two  dollar-denominated  bonds,  maturing in 2005 and 2012 (Boden 2005
and Boden 2012), respectively.  In the exchange that took place between July 16,
2002  and  August  8,  2002,  inclusively,  approximately  24% of the  financial
system's  restructured deposits were tendered. In the case of Banco Galicia this
percentage amounted to approximately 36%.

Decree No.905/02 established that subscription by financial  institutions of the
government bonds to be offered to depositors had to be carried in pesos, through
advances to be granted to them by the Argentine Central Bank. These advances had
to be fully  secured by public  and  private  sector  debt  instruments  held by
financial institutions,  in accordance to the provisions of article 15 of Decree
No.905/02 (which established the assets included and their order of preference),
except in the case of Boden 2012, which had to be acquired in the first place by
delivering 9% National Government Bonds maturing 2002 ("Bonos Encaje").

Additionally,  Decree  No.905/02  established  that  non-exchanged  restructured
deposits  would remain under the repayment  schedule  established  by Resolution
No.6/02 of the Ministry of Economy, as amended,  but would be registered by each
financial  entity with the Caja de Valores S.A.  ("Caja de  Valores")  and would
constitute  publicly  negotiable  instruments  (known  as  "CEDROs")  listed  in
self-regulated   markets  in  Argentina.   Holders  of  such   certificates   of
restructured  deposits would be able to apply such certificates to subscribe for
initial  public  offerings  of  equity  and debt  securities  authorized  by the
National  Securities  Commission  (the  "CNV") and  listed on a stock  exchange.
Decree No.905/02 also established the possibility of using restructured deposits
to repay loans granted by the same financial institution where the deposits were
held,  subject to the implementing  regulations  issued by the Argentine Central
Bank.

Through  Decree  No.1836/02  dated  September  16, 2002,  that was  regulated by
Argentine  Central Bank  Communique  "A" 3740,  the  government  announced a new
exchange  of  deposits  for  government  bonds.  The new  exchange  contemplates
different   options  for  holders  of  CEDROs  or  depositors  that  might  have
participated  in  the  previous   exchange  of  deposits  for  government  bonds
implemented  by the  government.  Holders of CEDROs will be able to  voluntarily
exchange their certificates for dollar-denominated bonds maturing in 2013 (Boden
2013),  that will be secured by the financial  institution  in which the deposit
was made, and/or peso-denominated  "Letras de Plazo Fijo" ("Time Deposit Bills")
to be issued by financial institutions and that include an option granted by the
government  to convert  into U.S.  dollars at the rate of Ps.1 per each  Ps.1.40
adjusted by CER, at each  amortization and coupon due dates, the amounts payable
at those dates.  The Time Deposit Bills have the same maturity as the Boden 2013
and their  principal



                                      F-16

<PAGE>

                 Grupo Financiero Galicia S.A. and Subsidiaries

                 Notes to the Consolidated Financial Statements
   For the year ended December 31, 2001, for the six-month transition period
 ended December 31, 2000 and for the fiscal years ended June 30, 2000 and 1999
          (Expressed in thousands of Argentine pesos, except as noted)


will  be  adjusted  by CER.  In  addition,  Decree  No.1836/02  established  the
possibility  for holders of restructured  deposits of up to Ps.7,000  (excluding
the CER adjustment) to receive cash and allowed financial institutions to extend
this  possibility  to  holders  of  restructured  deposits  of up  to  Ps.10,000
(excluding the CER adjustment). Banco de Galicia y Buenos Aires S.A. has offered
its customers the latter possibility.

The period to participate of the exchange was initially set to expire on October
30, 2002. The  expiration  date was  subsequently  postponed up to and including
December 12, 2002.

Decree No.1836/02  opened the possibility for financial  institutions to acquire
the  government  bonds to be  delivered to  depositors,  in exchange for Secured
Loans and other public sector debt instruments  held by financial  institutions,
i-e, those  included in art.15 of Decree  No.905/02,  with the preference  there
established.  The possibility of acquiring the government  bonds to be delivered
to depositors  through advances granted by the Argentine Central Bank secured by
the same assets  mentioned  in the  previous  sentence  was  maintained  and the
possibility  of acquiring  such bonds in cash was added for those cases were the
amount of bonds to be  delivered  to  depositors  by a bank  exceeds such bank's
holdings of assets  eligible to be exchanged for bonds or given as collateral of
advances.

In  addition  Decree  No.1836/02   allowed   financial   institutions  to  offer
dollar-denominated  government  bonds  maturing  in  2006 to  depositors  having
initiated judicial actions pending resolution, to recover their deposits.

Decree  No.410/02  provided  that  deposits  made by foreign  banks or financial
institutions with domestic  financial  institutions  would not be converted into
pesos at the Ps.1 to U.S.$1  exchange rate, as established by Decree  No.214/02,
provided that they be transformed  into lines of credit  effectively  maintained
and used for at least four years,  in  accordance  with  Argentine  Central Bank
regulations.  In  addition,  the  conversion  into pesos did not  include  those
obligations of the public and private  sectors to grant sums of money in foreign
currency, which are governed by foreign laws.

Other assets and liabilities

Decree No.410/02 established that futures and option contracts,  including those
recorded in self-regulated  markets and the accounts  exclusively  earmarked for
the operations on those markets would not be converted into pesos at the Ps.1 to
U.S.$1  exchange rate as  established by article 1 of Decree  No.214/02.  Decree
No.410/02 also established that:

a) Fiscal  credit  certificates  issued  in U.S.  dollars  or any other  foreign
currency  within the framework of Decrees  No.979/01,  No.1005/01 and No.1226/01
and  outstanding  at  February  3, 2002,  would be  converted  into pesos at the
exchange  rate of Ps.1.40  per  U.S.$1 or its  equivalent  in any other  foreign
currency.
b) The  balances of accounts of  financial  institution  in U.S.  dollars or any
other  currencies at the close of  operations at February 1, 2002,  which may be
computed  to comply  with  legal  reserve  requirements,  except  for  available
currency,  would be  converted  into pesos at the  exchange  rate of Ps.1.40 per
U.S.$1.

Through  Decree  No.992/02,  forward  contracts  and options  entered into under
Argentine  laws as of January  5, 2002,  in which at least one of the parts is a
financial  institution,  were  converted  into pesos at the rate of Ps.1.40  per
U.S.$1.



                                      F-17

<PAGE>

                 Grupo Financiero Galicia S.A. and Subsidiaries

                 Notes to the Consolidated Financial Statements
   For the year ended December 31, 2001, for the six-month transition period
 ended December 31, 2000 and for the fiscal years ended June 30, 2000 and 1999
          (Expressed in thousands of Argentine pesos, except as noted)


Bankruptcy proceedings

On January 30, 2002,  Law 25,563 on bankruptcy  proceedings  was enacted,  which
declared a production  and credit  emergency  generated by the crisis  affecting
Argentina,  to last until  December 10, 2003.  Below is a description of some of
the measures adopted:

a)  Suspension  for 180  days as from the  effective  date of that  Law,  of all
mortgage,  pledge and other  foreclosures  of whatever  origin,  including those
ordered in chapter 11 type of reorganization proceedings ("concursos"),  whether
they be made extra judicially or in execution of judgment. (art.9 and 16)
b)  Suspension  for 180  days of the  bankruptcy  ("quiebra")  petitions  filed,
without  prejudice to the  possibility  of applying  the  measures  envisaged in
article 85 of Law 24,522 (prior Bankruptcy Law). (art. 11)
c) Access to credit for individuals and companies in reorganization proceedings,
for which the Argentine  Central Bank would proceed to regulate the  elimination
of all restrictions and implement a rediscount line intended for those financial
institutions  that would  provide  credit  assistance  to such  individuals  and
companies. (art.12)
d) Financial  institutions  governed by Law 21,526 (Financial  Institutions Law)
and  supplementary  rules  would be granted a 90-day term to  restructure  their
receivables,  outstanding as of November 30, 2001, from financial system debtors
through an agreement to be reached with each of them. (art. 15)
e) Suspension for 180 days of all  precautionary  injunctions and prohibition of
new ones,  affecting property that is necessary for debtors to continue to carry
their usual business.  All extraordinary  acts of disposition of property on the
part of debtors  would be null and void  during the  suspension  period,  unless
there is an express agreement by creditors. (art. 16)

On May 15, 2002, Law 25,589 was enacted.  Among other things,  this Law repealed
the  articles of Law 25,563  mentioned  above and  modified  certain  procedures
established by Law 24,522 and Law 25,563. Article 16 provisions were replaced by
the suspension for 180 days (subsequently this period was postponed) as from the
effective date of this Law of:
- Auctions of real estate  property  that involve the home of the debtor  and/or
the  goods  and/or  facilities  used  by the  debtor  in its  commercial  and/or
productive  activities or for the provision of services,  ordered in foreclosure
proceedings,  in execution of judgments or in extrajudicial executions.  Certain
debts were excluded such as debts of a food support nature or derived from labor
lawsuits;
- The  execution of  precautionary  injunctions  ordering the  dispossession  of
property used by commercial,  industrial or similar  establishments for carrying
out their business activities and necessary for them to operate.

Legal actions requesting protection of constitutional guarantees

As a result of the measures adopted by the government,  a significant  number of
complaints  have been filed  against the national  government  and/or  financial
institutions by individuals and legal entities  claiming that those measures are
in breach of constitutional and other rights. The amounts that banks have had to
pay to comply with judicial orders that require that banks pay deposits in their
original  currency  of  denomination  (or the  equivalent  in  pesos at the free
exchange rate) have been significant and currently  represent the main source of
deposit loss for the financial system.

As of October 31, 2002, court orders received by Banco de Galicia y Buenos Aires
S.A.  mandating  the  reimbursement  of deposits in their  original  currency of
denomination or at the free exchange rate



                                      F-18

<PAGE>

                 Grupo Financiero Galicia S.A. and Subsidiaries

                 Notes to the Consolidated Financial Statements
   For the year ended December 31, 2001, for the six-month transition period
 ended December 31, 2000 and for the fiscal years ended June 30, 2000 and 1999
          (Expressed in thousands of Argentine pesos, except as noted)


amounted to Ps.13 million and U.S.$377 million,  respectively.  At that date, in
compliance  with court orders  requiring  the  reimbursement  of deposits  under
penalty of search and/or seizure and/or crimes  involving  illegal  retention of
deposits  and/or  contempt,  the Bank had paid the amounts of Ps.491 million and
U.S.$61 million for the reimbursement of deposits in pesos and foreign currency.

Decree  No.214/02,   as  amended  by  Decree  No.320/02,  in  turn  amended  and
complemented  by the Public  Emergency  Law and Decree  No.676/02  (both of them
published in the Official Gazette on April 26, 2002),  applicable to all pending
lawsuits and precautionary measures pending execution,  whatever the date of the
related court order may be, issued in judicial proceedings of whatever nature in
relation to credits, debts,  obligations,  deposits or rescheduling of financial
debts which may be deemed to be affected  by the  regulations  of Law 25,561 and
regulatory and  complementary  rules,  has regulated the method of proceeding in
those  lawsuits and of admission  and  execution of  provisional  remedies  that
decree,  for any reason or title, the material delivery of the pledged assets to
the petitioner.

The government has attempted to stop judicial  actions from  continuing to erode
the financial system's deposit base. On April 25, 2002, Law 25,587 was passed by
Congress that  prevents  withdrawals  from bank accounts  based on legal actions
that have not  resulted in a final  judgement.  In  addition,  on July 23, 2002,
Decree  No.1316/02  was passed in order to suspend for 120 working  days as from
the Decree's  effective date the execution of judicial orders,  whether based on
final judgements or not, associated to the recovery of deposits.  These measures
have  restricted  but not  completely  eliminated  the reduction in bank deposit
bases due to legal actions.

Article 17 of Decree  No.1836/02  dated  September 16, 2002,  allowed  financial
institutions to offer  dollar-denominated  government bonds maturing in 2006 for
the total or partial  settlement of claims of holders of  restructured  deposits
having  initiated  judicial  actions,  pending  resolution  as of  the  Decree's
effective  date,  to recover  their  deposits and that might have given place to
precautionary measures. The acceptance of the bonds by depositors is voluntary.

As of the date of these  financial  statements,  the Argentine  Supreme Court is
expected to rule on certain cases that will set up its final position  regarding
the  constitutionality  of the  conversion of  dollar-denominated  deposits into
pesos and the access restrictions imposed by the government to depositors.

Financial   institutions  have  requested  from  the  government  that  they  be
compensated  for the losses  arising  from the payment of  deposits  pursuant to
judicial  actions,  as explained  above,  at the free market  exchange  rate, at
values higher than the Ps.1.4 per U.S.$1  established by government  regulations
for the conversion of bank assets and liabilities  into pesos. As of the date of
these financial statements, the government has not addressed this issue yet.

Compensation to be granted to financial institutions

For the "asymmetric pesification" and its consequences
------------------------------------------------------
As  provided  for the Public  Emergency  Law and Decrees  No.214/02,  No.320/02,
No.410/02, No.471/02, No.704/02, No.905/02 and No.992/02 and complementary ones,
and  Argentine  Central  Bank  Communiques  "A"  3467,  3507,  3561 and 3648 and
complementary  ones,  a  significant  portion of banks'  assets and  liabilities
denominated in foreign currency, which formed part of banks' net asset positions
in foreign currency were converted into pesos at different exchange rates.


                                      F-19

<PAGE>


                 Grupo Financiero Galicia S.A. and Subsidiaries

                 Notes to the Consolidated Financial Statements
   For the year ended December 31, 2001, for the six-month transition period
 ended December 31, 2000 and for the fiscal years ended June 30, 2000 and 1999
          (Expressed in thousands of Argentine pesos, except as noted)


Decree  No.214/02  provided  for the  compensation,  through the issuance by the
government  of a bond to be delivered to financial  institutions,  of the losses
that financial institutions would otherwise suffer as a result of the conversion
of bank assets and liabilities into pesos at different exchange rates, the short
foreign   currency   positions  that  resulted  from  such  conversion  and  the
devaluation  of the peso.  Decree  No.494/02  established a methodology  for the
calculation of the amount of compensation  and  established  that the government
objective in providing such  compensation  was to cause financial  institutions'
shareholders'  equity to  return to the  levels  prior to the  pesification,  by
compensating:

- the losses caused by the  conversion  into pesos of a  significant  portion of
their liabilities at the Ps.1.40 per U.S. dollar, greater than the exchange rate
of  Ps.1  per  U.S.  dollar  established  for the  conversion  into  pesos  of a
significant  portion of its  dollar-denominated  assets.  This would be achieved
through the  issuance  and  delivery  of a  peso-denominated  Compensatory  Bond
maturing 2007 (Boden 2007).

- the currency  mismatch  generated by the compulsory  pesification of different
portions  of  financial  institutions'  assets  and  liabilities.  This would be
achieved through the conversion of the originally peso-denominated  Compensatory
Bond into a dollar-denominated  Compensatory Bond and, if necessary, through the
subscription  of a  dollar-denominated  Hedge  Bond.  For  this  the  government
established  the issuance of  dollar-denominated  bonds  maturing in 2012 (Boden
2012).

On June 1, 2002, the Argentine  government passed Decree No.905/02 that replaced
the  provisions  of Decree  No.494/02  related  to the  methodology  by which to
calculate the amount of compensation  to be received by financial  institutions.
Decree No.905/02 provided that the compensation to which a financial institution
was  entitled  to would be  calculated  by taking into  account  the  imbalances
generated by the government's pesification measures in the balance sheet of such
financial  institution's  headquarters  and branches  located in Argentina as of
December  31,  2001,  limiting  the  provision  of  compensation  on  account of
imbalances  generated  in the  balance  sheets  of  such  institution's  foreign
branches and subsidiaries and local subsidiaries with complementary  activities,
exclusively  to the  effects  of the  conversion  into  pesos  of  such  foreign
branches'  and  subsidiaries'  investments  in  Secured  Loans.  Therefore,  the
negative impact of the pesification of the  private-sector  assets of the Bank's
foreign  branches  and  subsidiaries  (New York and Cayman  branches and Galicia
Uruguay) and local subsidiaries with  complementary  activities (mainly Tarjetas
Regionales  S.A. and Galicia  Capital  Markets S.A.),  subject to Argentine Law,
remained excluded from the compensation scope.

The manner in which the Compensatory and Hedge Bonds were determined,  which did
not consider certain assets and liabilities of foreign branches and subsidiaries
and local  subsidiaries  with  complementary  activities  converted  into  pesos
pursuant to the  provisions  of Decree  No.214/02,  not only did not fulfill the
objectives of Decrees  No.214/02 and No.905/02,  being evidently  detrimental to
the Bank's financial condition,  but was also arbitrary since identical economic
transactions  could  be  included  or  excluded  from the  determination  of the
compensation  depending on whether they were  performed  directly by the Bank or
any of its foreign branches and subsidiaries or local subsidiaries, or depending
on whether the counterparty of the transaction  recorded abroad pertained to the
public or the private sector.

By a letter dated  September 16, 2002 sent to the Argentine  Ministry of Finance
and the Argentine Central Bank, the Bank has, as it had done previously in prior
presentations,  expressed  its  objection to the  compensation  regime.  In this
letter,  the Bank  expressly  stated  that "it does not  consent to or admit the
validity  of any regime  that  purports  to impair the Bank's net worth  without
providing full  compensation for such impairment or consent to or agree with the
exclusion from the compensation scope of the assets and li-


                                      F-20

<PAGE>


                 Grupo Financiero Galicia S.A. and Subsidiaries

                 Notes to the Consolidated Financial Statements
   For the year ended December 31, 2001, for the six-month transition period
 ended December 31, 2000 and for the fiscal years ended June 30, 2000 and 1999
          (Expressed in thousands of Argentine pesos, except as noted)


abilities of any of its branches,  subsidiaries  or controlled  affiliates  with
complementary activities that constitute a part of the consolidated net worth of
the Bank." In the letter,  the Bank  retained  its rights to bring any  actions,
including any legal action before the federal courts, for any damages and losses
caused  to it  by  the  aforementioned  compensation  measures  imposed  by  the
Argentine government or by any action or omission  attributable to the Argentine
government in connection  with its  infringement of the Bank's right against the
inviolability of private property and equal treatment by public authorities.

Argentine  Central  Bank's  Communique  "A"  3650  established  the  regulations
necessary to implement the provisions of Decree No.905/02 in connection with the
compensation  of the negative  effects of the conversion into pesos at different
exchange  rates  of  financial  institutions'  assets  and  liabilities  and the
resulting  foreign currency  mismatches left in their balance sheets.  Argentine
Central Bank's Communique "A" 3654 established July 29, 2002 as the last date on
which financial  institutions had to inform,  to the Argentine Central Bank, the
amounts of  compensation  to which they were entitled to, in accordance with the
regulations  in  force  at  the  moment.   Banco  Galicia   complied  with  this
requirement. However, subsequently, the Argentine Central Bank issued Communique
"A" 3716,  which modified such  regulations and originated a new presentation to
the Argentine  Central Bank on September 16, 2002.  For the Bank,  the amount of
compensation determined in accordance with the regulations in force at that time
amounted to U.S.$787.5 million (Compensatory Bond) and U.S.$618.2 million (Hedge
Bond).

On October 28, 2002,  Decree  No.2167/02 was issued which modified Article 29 of
Decree  No.905/02 by  incorporating  into the  calculation  of the  compensation
amounts the private-sector  assets and liabilities  recorded in foreign branches
and  subsidiaries  which were subject to the  pesification  provisions of Decree
No.214/02 and  complementary  ones.  The Bank  estimates  that the effect of the
incorporation  of such  assets  into the  compensation  calculation  would be to
increase the amounts of compensation to which the Bank is entitled by U.S.$230.2
million  (Compensatory  Bond) and U.S.$660.5 million (Hedge Bond). These amounts
do  not  include  the  assets  held  by  the  Bank's  local   subsidiaries  with
complementary activity.

For the  "asymmetric  indexation"  and legal  actions  related to the payment of
deposits
--------------------------------------------------------------------------------
In addition,  financial  institutions have requested to the government that they
be compensated  for the losses  generated to them by: 1) the payment of deposits
pursuant to judicial orders at the free market exchange rate,  which was greater
than that  established by the  government for conversion  into pesos of included
financial  institutions'  assets  and  liabilities,  and 2) the  adjustment  for
inflation of included  assets and  liabilities by using  different  coefficients
(CER vs. CVS)  ("asymmetric  indexation").  As of the date of November 20, 2002,
the  authorities  have not taken any measures to  compensate  these  issues.  As
previously mentioned, the Bank has presented several letters before the Ministry
of Finance and the Argentine  Central Bank addressing the need to deal with this
situation.

Financial statements' adjustment for inflation

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  established that
bank's  financial  statements  for periods  ended in 2002 would be restated  for
inflation by using the  Wholesale  Price Index (IPIM)  published by the National
Bureau of Statistics and Census (INDEC).

The reestablishment of the adjustment of financial  statements for inflation has
had  a  significant  adverse  effect  on  financial   institutions'  results  of
operations and those of the Bank. This is a consequence of the



                                      F-21

<PAGE>

                 Grupo Financiero Galicia S.A. and Subsidiaries

                 Notes to the Consolidated Financial Statements
   For the year ended December 31, 2001, for the six-month transition period
 ended December 31, 2000 and for the fiscal years ended June 30, 2000 and 1999
          (Expressed in thousands of Argentine pesos, except as noted)


fact that, given the conversion into pesos of the different assets held by banks
and the changes to their terms and conditions mandated by the government (public
sector debt  instruments and loans to the private  sector,  with their principal
adjusted by CER or CVS and accruing maximum interest rates as described  above),
a bank's liquid net worth (monetary  assets less monetary  liabilities) has been
left invested in assets  yielding lower rates than the rate of inflation used to
recognize in income  statements the cost of exposure of such liquid net worth to
inflation.

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

Foreign  exchange  losses  caused  by the  devaluation  of the  peso on  foreign
currency assets and liabilities  existing at the date of enactment of the Public
Emergency  Law  and  supplemental  decrees  (January  6,  2002)  shall  only  be
deductible  from  income tax in the  proportion  of 20% per annum in each of the
first five fiscal years ending after the effective date of the Law.


SITUATION OF THE BANK

During 2001,  the financial  system faced several  episodes of systemic  deposit
runs  as  a  consequence  of  the  Argentine  critical  economic  and  political
situation.  At the end of 2001,  in the case of the Bank,  the  deepening of the
economic and political  crisis led to a drop in deposits  which caused a lack of
liquidity,  that made it necessary for the Bank to request financial  assistance
from the  Argentine  Central  Bank.  In order to face this  situation,  the Bank
submitted to the Argentine Central Bank the plan described below.

Galicia Liquidity and Capitalization Plan
On March 21, 2002, the Bank submitted to the Argentine Central Bank the "Galicia
Capitalization and Liquidity Plan (the "Plan"). The pillars of the Plan were the
immediate  restoration of the Bank's liquidity  through the provision of cash in
an amount sufficient to allow the Bank to reimburse a significant portion of its
demand  deposits  without  having  to  request  financial  assistance  from  the
Argentine   Central  Bank;  and  a  subsequent   significant   increase  in  its
capitalization.  The Plan also contemplated the undertaking of negotiations with
foreign  creditors in order to restructure  the Bank`s debt with such creditors,
the orderly wind down of the Bank's operating units abroad, and the streamlining
of the Bank's  organization  and  administrative  expenses in order to adapt its
operations  to a level of activity  that is lower than that  experienced  in the
recent past.  The Plan included the temporary  exemption  from  compliance  with
certain  technical ratios and the reduction of the charges or fines arising from
any non-compliance incurred or to be incurred,  before implementing the Plan and
during its  implementation,  pursuant to the provisions of Law 21,526 (Financial
Institutions  Law).  The Plan was  approved,  by the Board of  Directors  of the
Argentine Central Bank, on May 3, 2002, through its Resolution No.281.

Liquidity
Initially the improvement in the Bank's liquidity was a result of:

- The  securitization  (and/or sale) of the Bank's  mortgage and commercial loan
portfolio  for a total amount of Ps.400  million,  through the transfer of loans
to, or the creation of trusts  subscribed by,  domestic  financial  institutions
during April 2002.

- A loan from the Deposit  Insurance Fund ("Fondo de Garantia de los Depositos")
for the U.S.  dollar amount  equivalent  to Ps.200  million at the exchange rate
prevailing on the day prior to that of the dis-


                                      F-22

<PAGE>

                 Grupo Financiero Galicia S.A. and Subsidiaries

                 Notes to the Consolidated Financial Statements
   For the year ended December 31, 2001, for the six-month transition period
 ended December 31, 2000 and for the fiscal years ended June 30, 2000 and 1999
          (Expressed in thousands of Argentine pesos, except as noted)


bursement (U.S.$64.5 million),  with a five-year term and an interest rate equal
to the 180-day LIBOR rate plus 300 basis points.

- A loan from the Fiduciary  Fund for the  Assistance to Financial  Institutions
and Insurance Companies ("Fondo Fiduciario de Asistencia a Entidades Financieras
y de Seguros") for the U.S.  dollar amount  equivalent to Ps.100  million at the
exchange rate prevailing on the day prior to that of the disbursement (U.S.$32.3
million),  with a three-year term and an interest rate equivalent to the 180-day
LIBOR plus 400 basis points, with a floor of 8.07%.

In  addition,  a Ps.574  million  loan from the Bank  Liquidity  Fund ("Fondo de
Liquidez  Bancaria") was  restructured by extending its maturity to three years.
This loan was  canceled  after the  implementation  of the Plan,  by means of an
advance from the Argentine Central Bank.

After the above  mentioned  initial  infusion of cash, and in the context of the
renegotiation of its external debt,  between the  implementation of the Plan and
the date of these financial statements,  the Bank has not required any financial
assistance from the Argentine Central Bank.

New York Branch and representative offices abroad
The  redefinition  of the Bank's  operating  units abroad included the "New York
Branch Restructuring Plan", which was submitted to the U.S. Treasury's Office of
the  Comptroller  of  the  Currency   ("OCC")  on  March  22,  2002.  This  plan
contemplated  the voluntary and orderly wind down of the New York Branch affairs
and its ultimate  closing,  after: 1) the payment of the New York Branch's small
deposits;  2) the  restructuring of its third party liabilities (a restructuring
that offered,  among others, at the creditors' election, a less than par-for-par
alternativeand  included the exchange of the New York  Branch's  existing  notes
(two issuances of U.S.$100 million each) for new notes (negotiable  obligations)
issued by the Head Office in Argentina and cash; and 3) the transfer to the Head
Office in Argentina of the restructured debt. As of March 31, 2002, the New York
Branch had third party liabilities totaling  approximately  U.S.$331 million, of
which approximately U.S.$311 million were restructured during the months of June
and July 2002.  Approximately 98% in aggregate  outstanding  principal amount of
the New York Branch  existing notes were validly  tendered and exchanged for the
new notes issued by the Head Office in two simultaneous exchange offers. The New
York Branch is currently being wound down and the Bank's representative  offices
in Sao Paulo (Brazil) and London (UK) have already been closed.

Capitalization
The Plan  contemplates  an  increase  in the Bank's  capitalization,  within the
framework of the  restructuring of the Bank's debt with foreign  creditors.  The
Plan considers the addition of basic and/or  complementary  capital  through the
subscription  by foreign  creditors  of ordinary  shares or  subordinated  debt,
whether  or  not  convertible  into  ordinary  shares,  at  the  option  of  the
participants.   Capitalization   can  take  place  also  as  a  result  of  debt
forgiveness,   as  occurred  in  the   restructuring  of  the  New  York  Branch
liabilities. As a result of such restructuring,  the Bank's shareholders' equity
increased by approximately US$43 million.

Restructuring of the Head Office and the Cayman Branch debt
On June 12, 2002, the Bank announced the  restructuring  of all of the debt with
foreign  creditors  of the  Bank's  Head  Office in  Argentina,  which  includes
U.S.$200 million in principal amount of negotiable obligations maturing in 2003.
At the  same  time,  the  Bank  announced  that it had  hired  an  international
investment bank as advisor in the process.


                                      F-23

<PAGE>

                 Grupo Financiero Galicia S.A. and Subsidiaries

                 Notes to the Consolidated Financial Statements
   For the year ended December 31, 2001, for the six-month transition period
 ended December 31, 2000 and for the fiscal years ended June 30, 2000 and 1999
          (Expressed in thousands of Argentine pesos, except as noted)


With respect to the  restructuring  of the Head Office's and the Cayman Branch's
foreign debt, the Bank has formally began negotiations with a steering committee
that was  recently  established  by the Bank's  largest  creditors.  The Bank is
currently  progressing  in the  restructuring  process and the  definition  of a
repayment proposal.

The  restructuring  of the Bank's  external debt is a complex process due to the
amount,  number of  creditors  and  variety  of debt  instruments  involved.  In
addition,  the process is complicated by the uncertainty prevailing in Argentina
in the political,  economic and regulatory  fields.  This  uncertainty  has been
especially  detrimental for the financial system, that was particularly affected
by the economic policy of the current administration.

Banco Galicia Uruguay S.A. and Banco de Galicia (Cayman) Ltd.
Galicia Uruguay
---------------
The developments in Argentina,  and most importantly the establishment of access
restrictions to deposits in December 2001,  resulted in the deterioration of the
public's  confidence in Argentine  banks and impacted  negatively on depositors'
confidence  in Galicia  Uruguay,  prompting a massive  run on Galicia  Uruguay's
deposits beginning in mid-December 2001.

On February 6, 2002,  Galicia Uruguay  submitted a letter to the Central Bank of
Uruguay in order to i) communicate its situation of temporary lack of liquidity,
which  prevented it from  continuing  to face the  withdrawal  of deposits;  ii)
request  financial  assistance in order to preserve its ability to reimburse all
of its  deposits in an orderly  manner and face the  withdrawals,  substantially
caused by the developments that had occurred in Argentina;  or iii) request from
that entity the authorization to temporarily suspend its activities.

On  February  13,  2002,  the  Central  Bank of Uruguay  resolved  to appoint an
intervenor to oversee  Galicia  Uruguay's  management  and  authorized the total
suspension  of  its  activities   for  a  90-day  period,   which  was  extended
subsequently for an additional 60-day period. On June 10, 2002,  Galicia Uruguay
submitted  to the  Central  Bank  of  Uruguay  a  proposal  to  restructure  its
liabilities.  The  proposal  consisted  of an  initial  cash  payment in dollars
equivalent  to 3% of the credit  balance of each creditor and, for the remaining
balances  and,  at  the  creditors  election,   a  time  deposit  or  negotiable
obligations  issued by Galicia  Uruguay,  both maturing on September  2011, with
principal amortization in nine annual installments (the first two for the 15% of
the remaining  balance and the following  ones for 10% of such balance) and a 2%
annual interest rate. On June 18, 2002, the Central Bank of Uruguay informed the
Bank that it would not oppose  any  restructuring  solution  that the Bank would
agree with Galicia Uruguay's depositors,  subject to the proposal being accepted
by at least 75% of the depositors.  This  percentage  coincides with the minimum
required by the Uruguayan Law to validate an  extrajudicial  agreement.  On June
20, 2002,  the Bank  informed the Central Bank of Uruguay that it was offering a
pledge of Galicia  Uruguay's  commercial  loan  portfolio  as  guarantee  of the
restructuring proposal presented on June 10, 2002.

The  proposal  was  accepted by 7,067  account  holders  representing  more than
U.S.$930  million in deposits over a total of U.S.$1,176  million held in 12,271
accounts.  Measured  in terms of  balances,  this  represents  a  percentage  of
acceptance of more than 79%.

On August 26, 2002, the Judge in charge of the Court of Montevideo that oversees
the  case,   accepted  the  steps  taken  by  Galicia  Uruguay  in  reaching  an
extrajudicial agreement and granted it a provisional moratorium that will extend
until the end of the  process.  In  addition,  the  Central  Bank of Uruguay was
desig-



                                      F-24

<PAGE>

                 Grupo Financiero Galicia S.A. and Subsidiaries

                 Notes to the Consolidated Financial Statements
   For the year ended December 31, 2001, for the six-month transition period
 ended December 31, 2000 and for the fiscal years ended June 30, 2000 and 1999
          (Expressed in thousands of Argentine pesos, except as noted)


nated by the above  mentioned  Court to verify that the legal  majority has been
obtained in the agreement. Such verification was satisfactorily concluded. As of
the date of these financial statements, and in accordance with the provisions of
Uruguayan Law, Galicia Uruguay has made public the  restructuring  proposal that
serves as the basis of the  agreement,  while the  process to obtain the Court's
approval is in progress.

Banco Galicia (Cayman) Ltd.
---------------------------
Galicia  Uruguay's  situation has affected its subsidiary Banco Galicia (Cayman)
Ltd. As a consequence,  on July 19, 2002, at the request of said subsidiary, the
Cayman Islands authorities have designated a provisional  liquidator in order to
allow a  voluntary  debt  restructuring  agreement  to be reached  between  this
subsidiary  and its creditors.  The  restructuring  of the  liabilities of Banco
Galicia  (Cayman) Ltd., is currently in progress.  This subsidiary will present,
in due time, to the relevant  authorities  the proposal to be made to creditors.
This proposal can only be made once the agreement  with the creditors of Galicia
Uruguay is closed.

Impact of Decree No.214/02 and complementary ones
-------------------------------------------------
The devaluation in Argentina and the "asymmetric  pesification"  of a portion of
Galicia  Uruguay's  loans that were  denominated in U.S.  dollars but subject to
Argentine Law,  materially and adversely  affected Galicia  Uruguay's  financial
condition.  As  mentioned,  this  impairment  was caused by the fact that Decree
No.905/02 excluded from the calculation of the amounts of Compensatory and Hedge
Bonds to which the Bank would be entitled  the  private-sector  pesified  assets
held by the Bank's controlled  companies with  complementary  activities and its
foreign  branches  and   subsidiaries.   Decree   No.2176/02   complemented  the
compensation  calculation,  by including in such calculation the  private-sector
assets held by foreign  branches  and  subsidiaries.  (See "Main  changes in the
financial  system's  regulatory  environment  and  the  impact  on  the  Bank  -
Compensation to be granted to financial institutions").

In this  context,  the Bank has entered into an agreement  with Galicia  Uruguay
whereby  the Bank has  agreed  to take  such  necessary  action  in order to, in
certain  circumstances and with the prior consent of the Argentine Central Bank,
make  contributions  to Galicia  Uruguay that may be required to permit  Galicia
Uruguay  to  repay  all  of  its  restructured  deposits.   Such  agreement  was
subsequently  amended by both  parties to clarify  that the direct and  indirect
legal effects  resulting from the  representations  and obligations set forth in
such  agreement and the  enforceability  of the rights  assumed  thereunder  are
subject to the prior  restoration of the economic  condition of the Bank and the
repayment in full of any financial  assistance provided by the Argentine Central
Bank to the Bank. These foregoing  circumstances  are mentioned in Article 52 of
Resolution No.281 of the Argentine Central Bank. In addition, as a result of the
intervention by the Uruguayan Central Bank of Galicia Uruguay, audited financial
statements  prepared  in  accordance  with  Argentine  accounting  rules are not
available for Galicia Uruguay.

For the foregoing  reasons and in complying  with the Plan,  the Bank decided in
2002 to fully  provision its  investment in Galicia  Uruguay and its  subsidiary
Banco Galicia (Cayman) Ltd. for the amounts recorded in its books as of December
31, 2001. Likewise, and for as long as the above mentioned circumstances remain,
the  Bank  deemed  it  appropriate   to  discontinue   the  valuation  of  these
subsidiaries in accordance with the equity method and the  consolidation of both
subsidiaries'  financial  statements with those of the Bank.  Within the context
described,  it is  the  Bank's  intention  to  continue  the  operations  of its
Uruguayan subsidiary.



                                      F-25

<PAGE>

                 Grupo Financiero Galicia S.A. and Subsidiaries

                 Notes to the Consolidated Financial Statements
   For the year ended December 31, 2001, for the six-month transition period
 ended December 31, 2000 and for the fiscal years ended June 30, 2000 and 1999
          (Expressed in thousands of Argentine pesos, except as noted)


2.   Significant Accounting Policies

The accounting  policies and financial  statements  presentation  conform to the
rules of the Central Bank of the Republic of Argentina (the  "Argentine  Central
Bank") which  prescribes the generally  accepted  accounting  principles for all
banks in Argentina (the "Argentine  Banking GAAP") and generally  conform to the
generally accepted accounting  principles of Argentina applicable to enterprises
in general ("Argentine GAAP").

Certain of the required  disclosures of the Argentine Central Bank have not been
presented  herein  since they are not  material  to the  accompanying  financial
statements.  In addition,  certain  presentations and disclosures  including the
statement  of cash  flows  have  been  included  in the  accompanying  financial
statements to comply with the Securities and Exchange  Commission's  regulations
for foreign  registrants.  The  Consolidated  financial  statements  of Banco de
Galicia y Buenos  Aires S.A.  as of December  31, 2001 have been  adapted to the
same period of time of Grupo Financiero Galicia S.A.'s financial statements.

The following is a summary of significant  policies  followed in the preparation
of the consolidated financial statements:

2.1  Foreign Currency

Assets and  liabilities  denominated  in foreign  currency are translated at the
applicable selling rate of exchange at the balance sheet dates.
The valuation criterion followed for the fiscal year ended December 31, 2001 was
that established by General  Resolution No. 392/2002 of the National  Securities
Commission (CNV) and Argentine  Central Bank Communique "A" 3439. In the case of
the U.S. dollar,  the rate of exchange applied is Ps.1=U.S.$1,  in line with the
Convertibility Law 23,938 in force at the closing date.

2.2  Government and Corporate Securities

Government  securities  mainly  represent  obligations of the Argentine and U.S.
governments.  Corporate  securities  included in this caption  consist of quoted
corporate  equity  securities and quoted debt  securities.  Corporate equity and
debt securities are considered as held for trading purposes.

Realized  and  unrealized  gains  and  losses on sales  and  interest  income on
government and corporate  securities are included as "Net income from government
and corporate securities" in the accompanying income statements.

Valuation of Government Securities under Argentine Banking GAAP

Through its Communique  "A" 2266 of November  1994,  the Argentine  Central Bank
established  the  categories in which banks would be able to classify  Argentine
government securities listed on local or foreign capital markets. The categories
established  by the  Argentine  Central  Bank  were the  following:  "investment
account",  "available  for sale" and "held  for  trading".  The same  Communique
established  the  accounting  valuation  for the  securities  in  each of  these
categories.

Argentine government  securities held by a bank in investment accounts had to be
held for at least  one year and the bank had to have at all  times  third  party
funding (such as debt securities,  deposits,  or lines of credits denominated in
local or  foreign  currency)  of an equal  amount  and  duration,  with  certain
exceptions,


                                      F-26

<PAGE>


                 Grupo Financiero Galicia S.A. and Subsidiaries

                 Notes to the Consolidated Financial Statements
   For the year ended December 31, 2001, for the six-month transition period
 ended December 31, 2000 and for the fiscal years ended June 30, 2000 and 1999
          (Expressed in thousands of Argentine pesos, except as noted)


to those of securities held in investment  accounts.  The Argentine Central Bank
rule also required that such  government  securities  and third party funding be
matched on a currency and interest  rate (either  floating or fixed)  basis.  In
accordance  with this rule,  investment  account  securities had to be valued at
their  acquisition cost 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.

Argentine government  securities  classified by a bank as available for sale had
to be held for at least three months and had to be valued at their market price.
Any difference  between such  securities  period-end  market price and amortized
cost, had to be accounted for in a separate account within shareholders' equity.

Government  securities  held by a bank and not  classified  in either of the two
previous  categories had to be classified as held for trading.  These securities
had to be marked to  market,  and any  difference  between  book value and their
market price and the end of each month had to be accounted  for in bank's income
statement.

Effective March 1, 1999, and through its Communiques "A" 2793, "A" 2859, and "A"
2898, the Argentine Central Bank:

o    eliminated the  available-for-sale  category.  As a consequence,  beginning
     March 1,  1999,  banks  could  only  classify  their  securities  either as
     investment account or held-for-trading securities.

o    established that, with the elimination of the available-for-sale  category,
     the balance of a bank's shareholders' equity account "Unrealized  Valuation
     Difference"  as of February  28,  1999,  had to be  reclassified  under the
     shareholders' equity account "Retained Earnings".

o    eliminated  the limits to the time an  investment  portfolio had to be kept
     and the requirement of matching funding characteristics.

These  rules did not modify the  accounting  for  either  investment  account or
held-for-trading securities.

Through   Communiques  "A"  3021  and  "A"  3039,  the  Argentine  Central  Bank
established that, effective March 1, 2000,

o    Investment  account  securities had to be valued at their  acquisition cost
     increased at the end of each  service  period by the  corresponding  coupon
     rate.

o    The book value of a security  classified  as  investment  account had to be
     adjusted to its market value if the market value of such  security was less
     than 20% of its book value.  The difference  between the book value and the
     market value of the security increased by 20%, had to be charged to income.
     The Argentine  Central Bank  established  the temporary  suspension of this
     adjustment until December 31, 2001.

On June 1, 2001, following the public offer made by the Republic of Argentina to
holders of various  series of its  outstanding  bonds to  exchange  them for new
issues,  the Bank exchanged eligible  Argentine  government  securities and debt
instruments  ("Pagare a Tasa  Variable",  booked  under loans) for new issues of
identical or ones with higher book value.

The Bank has taken part with government  securities held in investment  accounts
in the debt exchange  transaction carried out by the National Government in line
with Decree No.648/01 published on May 17,



                                      F-27

<PAGE>

                 Grupo Financiero Galicia S.A. and Subsidiaries

                 Notes to the Consolidated Financial Statements
   For the year ended December 31, 2001, for the six-month transition period
 ended December 31, 2000 and for the fiscal years ended June 30, 2000 and 1999
          (Expressed in thousands of Argentine pesos, except as noted)


2001,  and  received  Argentine  Global  External  Bonds  with a face  value  of
Ps.915,912  maturing in 2008 in exchange for them. The Company accounted for the
new bonds at the carry-over basis of the bonds exchanged.

Secured loans

Within  the  framework  of  Decree  No.1387/01,  the Bank has  participated,  on
November 6, 2001, in the exchange of Argentine public-sector debt securities and
loans,  under the  Promissory  Note/Bond  program,  for new loans called Secured
Loans. The main differences between the instruments received and those exchanged
consisted  of an  extension  of the  amortization  term  which  was 3 years  for
securities  originally  maturing up to December  31, 2010 and a reduction of the
interest rate, which was set at 70% of the contractual rate, with a maximum rate
of 7% per  annum  for  fixed-rate  transactions  and a  Libor  rate  plus 3% for
floating rate loans. As established by article 20 of the above mentioned decree,
the  conversion  was  made  at the  nominal  value,  at a rate  of  exchange  of
Ps.1=U.S.$1 and in the same currency as that of the converted obligation.

The Argentine  Central Bank  provided that the gain arising from the  difference
between  the  carrying  value of the  Secured  Loans  and the book  value of the
securities  exchanged  must be  recorded  in an  asset  adjustment  account  and
credited to income on a monthly basis,  in proportion to the term of each of the
Secured Loans received.

2.3  Interest Income (Expense) Recognition

Generally,  interest  income is  recognized on an accrual basis using the linear
(effective  interest) method. For loans and deposits  denominated in Pesos, with
maturities  greater than 92 days,  interest is recognized on a compounded basis,
which  provides for an  increasing  effective  rate over the life of the loan or
deposit.

As of January 1, 1997,  the Bank began  offering  time deposits to its customers
where the interest paid is a product of two components:

o    A fixed return where the interest expense is recognized under the effective
     interest method.

o    A  variable  return,  which is  indexed,  linked.  For this  component  the
     interest  expense is  recognized  in  accordance  with the variation in the
     underlying index.

The Bank  suspends  the accrual of interest  generally  when the related loan is
past  due  and the  collection  of  interest  and  principal  is in  doubt.  The
suspension of interest  corresponds to the loans  classified as "with  problems"
and  "defective  fulfillment",  or below  under  the  Argentine  Central  Bank's
classification  rules.  Accrued  interest  remains  on the  Bank's  books and is
considered  to be part of the loan balance when  determining  the  allowance for
loan losses.  Interest is recognized on a cash basis after  reducing the balance
of accrued interest, if applicable.

2.4  Foreign Exchange and Securities Activities

The Bank enters into forward  contracts to buy or sell  currencies or securities
at future  dates.  A receivable  and a payable are  reflected at the time of the
agreement,  which reflect the amounts of cash and currencies or securities to be
exchanged at the closing date. The difference between the value of the


                                      F-28

<PAGE>


                 Grupo Financiero Galicia S.A. and Subsidiaries

                 Notes to the Consolidated Financial Statements
   For the year ended December 31, 2001, for the six-month transition period
 ended December 31, 2000 and for the fiscal years ended June 30, 2000 and 1999
          (Expressed in thousands of Argentine pesos, except as noted)


receivable  and payable at the original  transaction  date (premium) is deferred
and amortized over the contract life.

The Bank  enters  into  purchases  and  sales  of  government  securities  under
agreements to resell or repurchase.

For investments sold under  agreements to repurchase,  the Bank records the sale
of the  securities  and  the  amounts  of cash  and  securities  to be paid  and
received,  respectively,  at the initial transaction date. The premiums paid are
deferred and amortized over the contract life.

For  investments  purchased  under  agreements  to resell,  the Bank records the
purchase of the securities and the amounts of securities and cash to be paid and
received,  respectively,  at the initial transaction date. The premiums received
are deferred and amortized over the contract life.

The Bank  purchases  and sells foreign  currencies  on behalf of its  customers,
which will  settle the next day.  An asset or  liability  is  reflected  for the
amounts due from or to the  customer and a  corresponding  asset or liability is
reflected for the currency to be exchanged.

The Bank's  receivables or payables  representing the future receipt or delivery
of currencies or securities are adjusted to reflect the current market prices of
such currencies or securities except for government  securities under repurchase
agreements that are designated by the Bank as investment securities.

2.5  Allowance for Loan Losses

The Bank provides for estimated  future possible losses on loans and the related
accrued interest  generally  through the  establishment of an allowance for loan
losses. The allowance charged to expenses is determined by management based upon
loan  classifications,  actual loss  experience,  current and expected  economic
conditions  delinquency  aging,  and an  evaluation  of potential  losses in the
current loan portfolio with specific  attention to loans where any evidence that
may  negatively  affect the  Bank's  ability  to  recover  the loan and  accrued
interest is known.

Considering  the economic  measures  that have had a  significant  impact on the
economic and financial situation of the Bank's customers,  additional allowances
for Ps. 39,076 were established.

Argentine  Central Bank Communique "A" 3418 resolved to extend for additional 31
days the length of time a borrower  can be past due for  borrowers in the normal
and potential  risk/inadequate  performance  categories.  This  additional  term
applied only to December 2001 classification.

2.6  Investments in Other Companies

Investments in Other Companies  include equity  investments in companies where a
minority interest is held, including investments in infrastructure companies and
utilities.  Under  Argentine  Banking GAAP, the equity method is used to account
for investments where a significant  influence in the corporate  decision making
process exists.  Significant influence is considered to be present in one of the
following situations:



                                      F-29

<PAGE>

                 Grupo Financiero Galicia S.A. and Subsidiaries

                 Notes to the Consolidated Financial Statements
   For the year ended December 31, 2001, for the six-month transition period
 ended December 31, 2000 and for the fiscal years ended June 30, 2000 and 1999
          (Expressed in thousands of Argentine pesos, except as noted)


o    Ownership of a portion of a related  company's  capital granting the voting
     power  necessary to  influence  the  approval of such  company's  financial
     statements and profits distribution.

o    Representation  in the related  company's  Board of  Directors or corporate
     governance body.

o    Participation in the definition of the related company's policies.

o    Existence  of  significant  transactions  between the  company  holding the
     interest  and the  related  company  (for  example,  when the former is the
     latter's only supplier or by far its most important client).

o    Interchange of senior officers among companies.

o    Technical dependence of one of the companies on the other.

Permanent  equity  investments  in companies  where  corporate  decision are not
influenced,  in terms of the criteria  listed  above,  are  accounted for at the
lower of cost or share of net book value of the investee.

2.7  Fixed Assets and Miscellaneous Assets

Fixed assets and miscellaneous assets are stated at cost.  Depreciation of those
properties, which were subject to the technical revaluation, is reflected in the
statements of income.

The depreciation of fixed assets and miscellaneous  assets is calculated,  where
appropriate,   based  on  the   revalued   amounts  of  such  assets  using  the
straight-line method at rates based on the estimated useful lives of the related
assets.  The estimated  useful lives are 50 years for  properties,  10 years for
furniture  and  fixtures  and 5 years for  others.  Leasehold  improvements  are
amortized using the  straight-line  method over the shorter of the lease term or
the estimated useful life of the asset.

The  cost  of  maintenance  and  repairs  is  charged  to  income.  The  cost of
significant  renewals and  improvements  is added to the carrying  amount of the
respective  fixed  assets.  The carrying  amounts and  accumulated  depreciation
allowances  for  assets  sold or  retired  are  eliminated  from the  respective
accounts  and gains or losses  realized  on  disposition  are  reflected  in the
statements of income.

2.8  Intangible Assets

Intangible assets are stated at cost and are amortized on a straight-line  basis
over 120 months for  goodwill  and over a maximum of 60 months for  organization
and development  costs.  Organization and development  costs, in accordance with
Argentine  Central Bank rules,  include  compensation and severance  payments to
personnel affected by a restructuring.

Under Argentine Banking GAAP,  goodwill is no longer recognized as an asset when
it is estimated  that amounts of future  income will not be sufficient to absorb
the amortization of goodwill or when there are other reasons to presume that the
amount of an investment that has been made will not be recovered in full.

2.9   Income Tax


                                      F-30

<PAGE>

                 Grupo Financiero Galicia S.A. and Subsidiaries

                 Notes to the Consolidated Financial Statements
   For the year ended December 31, 2001, for the six-month transition period
 ended December 31, 2000 and for the fiscal years ended June 30, 2000 and 1999
          (Expressed in thousands of Argentine pesos, except as noted)


Argentine Central Bank regulations  require income taxes to be recognized on the
basis of amounts due in accordance with Argentine tax regulations.

2.10 Statement of Cash Flows

For purposes of reporting cash flows, "Cash and cash equivalents"  include "Cash
and due from banks".  The  statement of cash flow was prepared  using  Argentine
Banking  GAAP  measurement  methods  and  U.S.  GAAP  presentation.   Securities
classified  as  investment  securities  under  Argentine  Banking GAAP have been
classified as available-for-sale securities under U.S. GAAP presentation.

2.11 Reclassifications

Certain  balances  from  prior  years have been  reclassified  to conform to the
current year presentation.

2.12 Derivative financial instruments

The Bank uses a variety of derivative financial  instruments,  including forward
contracts,  options  and  interest  rate  futures  as part of its  overall  risk
management strategy and for trading purposes.

Forward Contracts

The Bank uses forward contracts in foreign exchange,  government  securities and
private securities in order to adjust its exposure to interest rate and exchange
rate risk arising from its trading activities.  At the transaction date the Bank
recognizes  a  receivable  or payable  for the value of the cash and the foreign
currencies or securities to be exchanged.  The difference  between this value of
the  receivable and payable at the  transaction  date and the value at which the
asset and liability will be settled in accordance  with the forward  contract is
deferred and amortized over the period of the contract.  Subsequent fluctuations
in the market value of the cash and the foreign  currencies  or securities to be
exchanged are reflected in the income statement.

Option Contracts

Through  December  31, 2000 the Bank had certain  option  contracts to hedge its
exposure to interest payments that are linked to other financial asset's prices.
The Bank  attempts to  synthetically  create a long  position in such  financial
assets by  purchasing a call option with a strike price  equivalent to the price
of the  financial  asset at the  date the  index-linked  deposit  instrument  is
entered  into.  Simultaneously,  a call  option is written  with a strike  price
equivalent to the maximum price of the financial asset for which interest may be
calculated.

The life of the  options is matched to the term of the time  deposits.  The Bank
accounts for these instruments by offsetting the gain on the options against the
variable expense incurred on the time deposits.  The premiums paid and collected
are amortized  over the life of the option  contracts.  In this way the interest
expense  recorded  by the  Bank on the  time  deposits  is  equal  to the  fixed
component of the time  deposits  plus (or minus) the  difference  in the caption
premiums paid and collected.


3.    Restricted Assets


                                      F-31


<PAGE>

                 Grupo Financiero Galicia S.A. and Subsidiaries

                 Notes to the Consolidated Financial Statements
   For the year ended December 31, 2001, for the six-month transition period
 ended December 31, 2000 and for the fiscal years ended June 30, 2000 and 1999
          (Expressed in thousands of Argentine pesos, except as noted)


In accordance with Argentine Central Bank  regulations,  the Bank is required to
maintain  average  monthly  assets (for example,  remunerated  cash-balances  in
accounts with foreign  correspondents,  government  securities  purchased  under
agreements to resell with the Argentine  Central Bank and Argentine Central Bank
Liquidity Bills).

The required daily  averages  calculated on a monthly basis for the month ending
on each balance sheet date were as follows:

<TABLE>
<CAPTION>
                                                                       Grupo Galicia                 Banco Galicia
                                                            -------------------------------------  ------------------
                                                                        December 31,                    June 30,
                                                            -------------------------------------  ------------------
                                                                2001 (1)             2000                 2000
                                                            ------------------ ------------------  ------------------
<S>                                                         <C>                  <C>                <C>

Peso balances.............................................  Ps.         -        Ps.    521,217     Ps.      568,827
Foreign currency balances.................................              -             1,432,525            1,286,639

(1) The Argentine Central Bank determined that the minimum liquidity and reserve requirement balances would be
computed on a quarterly  basis  beginning in January  2002.  Under these new  regulations  there is no minimum
liquidity requirement at December 31, 2001.

</TABLE>


Certain of the Bank's  other  assets are  pledged or  restricted  from use under
various  agreements.  The following assets were restricted at each balance sheet
date:


<TABLE>
<CAPTION>
                                                                       Grupo Galicia                 Banco Galicia
                                                            -------------------------------------  ------------------
                                                                        December 31,                   June 30,
                                                            -------------------------------------  ------------------
                                                                  2001               2000                2000
                                                            ------------------  -----------------  ------------------
<S>                                                         <C>                  <C>               <C>

Funds and securities pledged under various arrangements..   Ps.       403,549    Ps.     227,918   Ps.       254,440
Loans pledged under borrowing arrangements related to
   Equity investments in other companies (1)..............             27,556             15,226              15,297
   Deposits in the Argentine Central Bank, frozen under
   Argentine Central Bank regulations.....................              1,757                962                 992
   New York Branch (funds, government securities and
   Certificates of deposit)...............................             29,056             28,809              29,262
   Loans granted as collateral............................          4,820,391              1,505               4,355
                                                            ------------------  -----------------  ------------------
Total.....................................................  Ps.     5,282,309    Ps.     274,420   Ps.       304,346

(1) The Bank has  granted  a senior  pledge  on all its  shares  in  Correo  Argentino  S.A.,  in favor of the
International Finance Corporation,  the Inter American Development Bank and a syndicate of local institutions,
as collateral for financing  granted to that company.  The Argentine  Central Bank through  Resolution  No.408
dated September 9, 1999  authorized  this  transaction.  According to the contract  signed,  in the event of a
deficit in funds,  the Bank and the majority  shareholder of Correo  Argentino S.A.  should hold the financial
creditors  harmless  from any  non-compliance  as a result of such  deficit.  Under the terms of the contract,
Correo Argentino S.A. should inform the Bank and Socma Americana S.A. of the existence of any deficit.  At the
date of these financial statements, the Bank had not been notified of any requirement in this connection.

</TABLE>

As a shareholder  of the  concessionaires  of the water supply  services,  Aguas
Argentinas S.A., Aguas  Provinciales de Santa Fe S.A. and Aguas Cordobesas S.A.,
Banco de Galicia y Buenos Aires S.A. and


                                      F-32

<PAGE>

                 Grupo Financiero Galicia S.A. and Subsidiaries

                 Notes to the Consolidated Financial Statements
   For the year ended December 31, 2001, for the six-month transition period
 ended December 31, 2000 and for the fiscal years ended June 30, 2000 and 1999
          (Expressed in thousands of Argentine pesos, except as noted)


the other  shareholders  have  committed to provide  financial  support to those
companies if they were unable to fulfill the  commitments  they have  undertaken
with international  financial bodies. At the date of these financial statements,
the  Bank  had not been  notified  of any  requirement  in this  connection.  At
December 31, 2001,  management  estimates that the maximum amounts of assistance
that may be required amounted to approximately Ps. 55,000.


4.   Interest-Bearing Deposits with Other Banks

At December 31, 2001,  December 31, 2000 and June 30, 2000 the overnight foreign
bank  interest-bearing  deposits  are  included  in loans  and  amounted  to Ps.
170,918, Ps. 360,465 and Ps. 487,315, respectively.


5.   Government and Corporate Securities

The  government  and  corporate  securities  classification  set forth below was
determined in accordance with Argentine Banking GAAP. After March 1, 1999, there
are no limits to the time an  investment  must be held and the  matched  funding
requirement was eliminated.

For investments to be classified as available-for-sale,  they had to be held for
at least three months.  The  available-for-sale  category was  eliminated by the
Argentine Central Bank effective March 1, 1999.

Securities classified as investment securities under Argentine Banking GAAP were
classified as available-for-sale  securities under U.S. GAAP. See Note 39 to the
Consolidated Financial Statements.

Government and corporate securities held by the Bank consist of the following at
the respective balance sheet dates:




                                      F-33

<PAGE>

                 Grupo Financiero Galicia S.A. and Subsidiaries

                 Notes to the Consolidated Financial Statements
    For the year ended December 31, 2001, for the six-month transition period
  ended December 31, 2000 and for the fiscal years ended June 30, 2000 and 1999
          (Expressed in thousands of Argentine pesos, except as noted)


<TABLE>
<CAPTION>

                                                                      Grupo Galicia                   Banco Galicia
                                                          ---------------------------------------   ------------------
                                                                       December 31,                     June 30,
                                                          ---------------------------------------
                                                                 2001                2000                 2000
                                                          ------------------- -------------------   ------------------
<S>                                                       <C>                  <C>                  <C>

Government Securities
Quoted:
Carried at market value
Held for trading purposes:
   Brady Bonds........................................    Ps.              -   Ps.         2,431    Ps.         2,915
   Government Bonds...................................                   143               3,692                7,405
   Argentine Treasury Bonds...........................                 5,008              19,296              254,711
   U.S. Government Bonds..............................                49,024              25,791               24,630
   Others.............................................                 4,363              21,023               22,263
                                                          -------------------  ------------------   ------------------
Total trading securities..............................    Ps.         58,538   Ps.        72,233    Ps.       311,924
                                                          -------------------  ------------------   ------------------
Carried at amortized cost
Held for investment purposes
   Government Bonds...................................                     -                   -               64,553
   Argentine Treasury Bonds...........................                     -               4,581               34,216
                                                          -------------------  ------------------   ------------------
Total investment securities...........................    Ps.              -   Ps.         4,581    Ps.        98,769
                                                          -------------------  ------------------   ------------------
Unquoted
   Fiscal Credit Certificate (*)                                      53,006                   -                    -
   Others.............................................                12,587                 545                  624
   Less: Reserve for market valuation.................                 (116)               (116)                (116)
                                                          -------------------  ------------------   ------------------
Total government securities...........................    Ps.        124,015   Ps.        77,243    Ps.       411,201
                                                          ===================  ==================   ==================
Corporate Securities
     Corporate shares ................................                     9                   -                    -
     Negotiable obligations (quoted)..................                 5,385               5,959                7,353
     Others...........................................                   500                  13                  681
                                                          -------------------  ------------------   ------------------
Total government and corporate securities.............    Ps.        129,909   Ps.        83,215    Ps.       419,235
                                                          ===================  ==================   ==================
</TABLE>

(*) Government securities collateralized by future tax payments.


6.   Loans

The lending activities of the Bank consist of the following:

Loans to the  non-financial  public sector:  represent  loans to the federal and
provincial governments of Argentina.

Loans to the financial sector: represent loans to banks and financial entities.

Loans to the  non-financial  private  sector and residents  abroad:  include the
following types of lending:

     Overdrafts  -  short-term   obligations   drawn  on  by  customers  through
     overdrafts.   Also,  prefinancing  of  exporters  and  other  customers  in
     connection with documents evidencing the future receipt of cash.

     Notes - endorsed  promissory  notes,  discounted  and  purchased  bills and
     factored loans.

     Mortgage   loans  -  loans  to   purchase   or  improve   real  estate  and
     collateralized  by such real  estate or  commercial  loans  secured by real
     estate.



                                      F-34

<PAGE>

                 Grupo Financiero Galicia S.A. and Subsidiaries

                 Notes to the Consolidated Financial Statements
   For the year ended December 31, 2001, for the six-month transition period
 ended December 31, 2000 and for the fiscal years ended June 30, 2000 and 1999
          (Expressed in thousands of Argentine pesos, except as noted)


     Pledge loans - loans where collateral is pledged as an integral part of the
     loan document.

     Credit card loans - loans to credit cards holders.

     Consumer loans - loans to individuals.

     Others - includes mainly placements in foreign banks - short-term  deposits
     in foreign banks.

Under Argentine Banking GAAP, the Bank must disclose the composition of the loan
portfolio by non-financial  public sector,  financial  sector and  non-financial
private  sector and  residents  abroad.  Additionally,  the type of guarantee on
non-financial private sector loans, which corresponds to the type of collateral,
pledged on the loans (preferred  guarantees related to a recorded right of first
lien),  is  also  required  to be  disclosed.  The  classification  of the  loan
portfolio in this regard is as follows:

<TABLE>
<CAPTION>

                                                                      Grupo Galicia                   Banco Galicia
                                                          ---------------------------------------   ------------------
                                                                       December 31,                     June 30,
                                                          ---------------------------------------
                                                                 2001                2000                 2000
                                                          ------------------- -------------------   ------------------
<S>                                                       <C>                 <C>                   <C>

Non-financial public sector............................   Ps.      3,974,437  Ps.      2,615,335    Ps.     2,503,694
Financial sector (Argentine) ..........................               86,607             508,924              361,223
Non-financial private sector and residents abroad
With preferred guarantees..............................            2,078,263           2,036,541            1,861,665
With other guarantees..................................              766,922             981,515              894,708
Unsecured..............................................            2,695,685           3,369,620            3,967,281
                                                          ------------------- -------------------   ------------------
                                                                   5,540,870           6,387,676            6,723,654
                                                          ------------------- -------------------   ------------------
Provision for loan losses (see Note 7) ................            (476,651)           (270,495)            (261,799)
                                                          ------------------- -------------------   ------------------
Total...................................................  Ps.      9,125,263  Ps.      9,241,440    Ps.     9,326,772
                                                          =================== ===================   ==================
</TABLE>

The Bank also records its loan  portfolio  by industry  segment.  The  following
industry segments comprised the most significant loan concentrations at December
31, 2001, 2000 and June 30, 2000, respectively:

<TABLE>
<CAPTION>
                                                                      Grupo Galicia                   Banco Galicia
                                                          ---------------------------------------   ------------------
                                                                       December 31,                     June 30,
                                                          ---------------------------------------   ------------------
                                                                 2001                2000                 2000
                                                          ------------------- -------------------   ------------------
<S>                                                       <C>                      <C>                 <C>

Financial services industry............................            3.11 %              9.62  %              9.38 %
Public sector..........................................           41.39 %             27.49  %             26.11 %
Agriculture and livestock..............................            6.48 %              7.29  %              7.01 %
Consumer...............................................           21.11 %             22.17  %             19.49 %

</TABLE>

During fiscal years 2000 and 1999,  the Bank granted loans to the Bank's related
parties  including  related officers and companies.  Total loans  outstanding to
these persons at June 30, 2000 and 1999  amounted to Ps. 65,388 and Ps.  48,197,
respectively.  The change from June 30, 1999 to June 30, 2000 reflects  payments
amounting to Ps. 85,253 and advances of Ps. 102,444.

As of December  31, 2000 the loans  outstanding  to these  persons  amounted Ps.
69,523 and the charge from June 30, 2000 to December 31, 2000 reflects  payments
amounting to Ps. 111,211 and advances of Ps. 115,346.



                                      F-35

<PAGE>

                 Grupo Financiero Galicia S.A. and Subsidiaries

                 Notes to the Consolidated Financial Statements
   For the year ended December 31, 2001, for the six-month transition period
 ended December 31, 2000 and for the fiscal years ended June 30, 2000 and 1999
          (Expressed in thousands of Argentine pesos, except as noted)


The total loans outstandings at December 31, 2001 amounted Ps. 106,337,  and the
change from December 31, 2000 to December 31, 2001 reflects  payments  amounting
to Ps. 212,256 and advances 249,070.

Such loans were made in the ordinary  course of business at normal credit terms,
including  interest  rate and  collateral  requirements,  and,  in  management's
opinion, represent normal credit risk.


7.   Allowance for Loan Losses

The activity in the allowance for loan losses for the fiscal year ended December
31,  2001,  for the  six-month  period  ended  December 31, 2000 and for the two
fiscal years ended June 30, 2000 and 1999 is as follows:

<TABLE>
<CAPTION>

                                                           Grupo Galicia                       Banco Galicia
                                                 ----------------------------------   --------------------------------
                                                                     Six-month
                                                   Year ended       period ended
                                                   December 31,     December 31,           Years ended June 30,
                                                 ----------------------------------   --------------------------------
                                                         2001              2000             2000             1999
                                                 ----------------- ----------------   -------------- -----------------
<S>                                              <C>               <C>                <C>            <C>

Balance at beginning of year...................  Ps.      270,495  Ps.     261,799    Ps.   268,284  Ps.      217,015
Allowance of acquired companies................                 -                -                -            30,437
Allowance charged to income....................           418,436          115,240          240,776           204,423
Prior allowances reversed......................             (916)          (1,330)          (1,550)             (127)
Loans charged off..............................         (211,364)        (105,214)        (245,711)         (183,464)
                                                 ----------------- ----------------   -------------- -----------------
Balance at end of the period/year..............  Ps.      476,651  Ps.     270,495    Ps.   261,799  Ps.      268,284
                                                 ================= ================   ============== =================
</TABLE>

Certain loans,  principally  small loans, are charged directly to income and are
not reflected in the activity in the  allowance for loan losses.  The "Loan loss
provision" in the accompanying income statements includes:


<TABLE>
<CAPTION>
                                                           Grupo Galicia                       Banco Galicia
                                                 ----------------------------------   --------------------------------
                                                                    Six-month
                                                   Year ended      period ended
                                                   December 31,    December 31,               Years ended June 30,
                                                 ----------------------------------   --------------------------------
                                                       2001              2000             2000             1999
                                                 ----------------- ----------------   -------------- -----------------
<S>                                              <C>               <C>                <C>            <C>

Provisions charged to income...................  Ps.      418,436  Ps.     115,240    Ps.   240,776  Ps.      204,423
Direct charge-off..............................            19,130            7,470            7,879            10,661
Other receivables losses.......................            19,800              873              771               925
Financial leases...............................               329               98               40                29
                                                 ----------------- ----------------   -------------- -----------------
                                                 Ps.      457,695  Ps.     123,681    Ps.   249,466  Ps.      216,038
                                                 ================= ================   ============== =================
</TABLE>

The Bank has entered into certain  troubled debt  restructuring  agreements with
customers. The Bank eliminates any differences between the principal and accrued
interest  due under the original  loan and the new loan amount  through a charge
against the allowance for loan losses.  Loans under such agreements  amounted to
Ps. 21,615,  Ps. 22,503,  Ps. 22,994 and Ps. 29,653 at December 31, 2001,  2000,
June 30, 2000 and 1999, respectively.




                                      F-36

<PAGE>

                 Grupo Financiero Galicia S.A. and Subsidiaries

                 Notes to the Consolidated Financial Statements
   For the year ended December 31, 2001, for the six-month transition period
 ended December 31, 2000 and for the fiscal years ended June 30, 2000 and 1999
          (Expressed in thousands of Argentine pesos, except as noted)


8.   Other Receivables Resulting from Financial Brokerage

The  composition  of other  receivables  from  financial  brokerage,  by type of
guarantee, is as follows:

<TABLE>
<CAPTION>
                                                                        Grupo Galicia                Banco Galicia
                                                              -----------------------------------   -----------------
                                                                         December 31,                   June 30,
                                                              -----------------------------------   -----------------
                                                                    2001              2000                2000
                                                              -----------------  ----------------   -----------------
<S>                                                           <C>                <C>                <C>

Preferred guarantees, including deposits with the Argentine
Central Bank...............................................   Ps.       64,282   Ps.   2,717,174    Ps.    2,163,091
Other guarantees...........................................              7,393            11,838                 507
Unsecured..................................................          1,675,422         3,140,488           2,683,088
Less:  Allowance for doubtful accounts.....................            (7,463)          (10,413)            (16,542)
                                                              -----------------  ----------------   -----------------
                                                              Ps.    1,739,634   Ps.   5,859,087    Ps.    4,830,144
                                                              =================  ================   =================
</TABLE>

The Bank enters into forward transactions in foreign currencies.  The assets and
corresponding  liabilities related to forward transactions in foreign currencies
are as follows:

<TABLE>
<CAPTION>
                                                                         Grupo Galicia               Banco Galicia
                                                               ----------------------------------   -----------------
                                                                         December 31,                   June 30,
                                                               ----------------------------------   -----------------
                                                                    2001              2000                2000
                                                               ------------------------------------------------------
<S>                                                            <C>               <C>                <C>

Forward foreign exchange purchases:
  Forward purchases of foreign exchange.....................   Ps.         343   Ps.      90,105     Ps.      49,619
  Creditors for forward purchases of foreign exchange (*)...               333            90,166              49,342
Forward foreign exchange sales:
  Forward sales of foreign exchange.........................           169,758         1,023,852             959,068
  Debtors for forward sales of foreign exchange (*).........           169,749         1,023,914             958,813

(*) Forward  price of  currency  contracts  net of  premiums  deferred at end of period.
</TABLE>

The  breakdown  of the caption  "others"  included  in the  balance  sheet is as
follows:

<TABLE>
<CAPTION>
                                                                         Grupo Galicia               Banco Galicia
                                                               ----------------------------------   -----------------
                                                                         December 31,                   June 30,
                                                               ----------------------------------   -----------------
                                                                    2001              2000                2000
                                                               ----------------  ----------------   -----------------
<S>                                                            <C>               <C>                <C>

  Mutual funds..............................................   Ps.       9,935   Ps.      16,832    Ps.       16,203
  Financial trust participation certificates (See note 34)..           560,677           486,556              58,800
  Unearned premiums for repo transactions...................             9,023            37,111              47,485
  Structured notes..........................................                 -           449,499             459,004
  Accrued commissions.......................................            15,735             7,117              10,751
  Margin....................................................                 -             3,655               3,559
  Others....................................................           109,948            72,570              52,390
                                                               ----------------  ----------------   -----------------
                                                               Ps.     705,318   Ps.   1,073,340    Ps.      648,192

</TABLE>

9.   Equity Investments in other Companies

Banco Galicia  signed an agreement to sell 100% of its 12% interest in Inversora
en Distribucion de Entre Rios S.A. in two steps. In December 2000, the Bank sold
49% of its equity stake for Ps. 11,779 with a gain of Ps. 2,953. For the sale of
the remaining 51% the Bank received a call option with an exercise price



                                      F-37

<PAGE>

                 Grupo Financiero Galicia S.A. and Subsidiaries

                 Notes to the Consolidated Financial Statements
   For the year ended December 31, 2001, for the six-month transition period
 ended December 31, 2000 and for the fiscal years ended June 30, 2000 and 1999
          (Expressed in thousands of Argentine pesos, except as noted)


of Ps. 12,281. On June 28, 2001, the Bank sold the remaining 51% of its interest
in this company for Ps. 11,431 obtaining a gain of Ps. 1,338.

On  December  27,  2000  the  Unanimous  Ordinary  Meeting  of  Shareholders  of
Sudamericana Holding S.A. resolved to increase the company's capital,  which was
fully subscribed by Grupo Galicia and Banco Galicia.  As a result of this, Grupo
Galicia holds 37.5% and Banco Galicia,  12.50%  respectively,  of the shares and
voting rights of Sudamericana  Holding S.A. This transaction was approved by the
National Commission for the Defense of Competition, on August 2001. The purchase
consideration  was Ps. 5,422. The difference  between the amount paid up and the
equity value generated goodwill of Ps. 2,419.

During  December 2000,  Banco Galicia sold to  Sudamericana  Holding S.A. 83,333
ordinary shares of Galicia Vida Compania de Seguros S.A., which represents 12.5%
of this company's capital stock. The total price of the transaction  amounted to
Ps. 1,506.

In September 2001, Grupo Galicia S.A. acquired from Hartford Life  International
Ltd.  (Bermuda)  50% of the  capital  stock and  voting  rights of  Sudamericana
Holding S.A., so the equity  interest held by Grupo  Financiero  Galicia in that
company in now 87.50%.  The price of the transaction  amounted to Ps. 9,556. The
difference between the price paid and the equity value generated goodwill of Ps.
4,016.

On August 30,  2001,  Grupo  Financiero  Galicia  S.A.  also  purchased  175,000
ordinary,  book-entry shares representing 87.50% of the capital stock and voting
rights of Galicia Warrants S.A. The price paid for this transaction amounted Ps.
5,369 and the goodwill generated amounted Ps. 3,397.

Moreover, the Bank has a 20% interest in Banelco S.A.

All of these  investments  are  accounted  for under the  equity  method.  As at
December  31,  2001 and 2000,  the Bank had an  interest of 12.5% or less in the
other investments.

On March 21,  2001,  the Board of  Directors  of the Bank  decided  to sell it's
22.71% equity  interest in Banco  Barclays e Galicia S.A.  (10,449,541  shares),
under the terms of the  public  tender  offer  that took place in Brazil and was
made by Barclays  Bank plc to purchase  all of Banco  Barclays e Galicia  S.A.'s
shares. The price set by Barclays Bank plc was R$5.77 (5.77 Brazilian Reais) per
share,  equivalent  to Ps.2.67 per share at the March 19, 2001  exchange rate of
R$2.165 per peso.  This  transaction  closed in August 2001 and led to a gain on
sale of Ps.6,616.

Equity  investments in other companies held by the Bank consist of the following
at the respective balance sheet dates:






                                      F-38

<PAGE>

                 Grupo Financiero Galicia S.A. and Subsidiaries

                 Notes to the Consolidated Financial Statements
    For the year ended December 31, 2001, for the six-month transition period
  ended December 31, 2000 and for the fiscal years ended June 30, 2000 and 1999
          (Expressed in thousands of Argentine pesos, except as noted)


<TABLE>
<CAPTION>

                                                                     Grupo Galicia                  Banco Galicia
                                                         --------------------------------------   -------------------
                                                                     December 31,                      June 30,
                                                         --------------------------------------   -------------------
                                                               2001                2000                  2000
                                                         ------------------  ------------------   -------------------
<S>                                                      <C>                 <C>                  <C>

In Financial Institutions, supplementary and
authorized activities
Banelco S.A...........................................   Ps.         3,673   Ps.         3,411    Ps.          5,598
Banco Barclays e Galicia S.A..........................                   -              16,422                23,524
Visa Argentina S.A....................................                 431                 431                   431
Mercado de Valores de Buenos Aires....................               2,975               2,975                 2,975
Banco Latinoamericano de Exportaciones S.A............                 528                 520                   428
Galicia Advent Socma Private Equity Fund Ltd..........               2,889               2,194                 2,277
Others................................................               1,145                 613                   558
                                                         ------------------  ------------------   -------------------
Total Financial Institutions, supplementary and
authorized activities.................................   Ps.        11,641   Ps.        26,566    Ps.         35,791
                                                         ------------------  ------------------   -------------------
                                                                     Grupo Galicia                  Banco Galicia
                                                         --------------------------------------   -------------------
                                                                     December 31,                      June 30,
                                                         --------------------------------------   -------------------
                                                               2001                2000                  2000
                                                         ------------------  ------------------   -------------------
In Non-financial Institutions
Aguas Argentinas S.A..................................   Ps.        20,794   Ps.        20,794    Ps.         20,794
Inversora Diamante S.A................................               5,874               6,111                 6,203
Inversora Nihuiles S.A................................               7,148               7,461                 7,461
Electrigal S.A........................................               2,475               2,475                 2,573
Aguas Provinciales de Santa Fe S.A....................               7,900               7,900                 7,900
Galicia Vida Compania de Seguros S.A..................                   -                   -                 1,484
Inversora en Distribucion de Entre Rios S.A...........                   -               9,842                19,298
A.E.C. S.A............................................               2,786               3,980                 3,980
Aguas Cordobesas S.A..................................               3,250               3,250                 3,250
Sudamericana Holdings.................................                   -               5,810                     -
Correo Argentino S.A..................................              12,462              12,463                12,462
Caminos de la Sierra S.A..............................               2,660                   -                     -
Tradecom International N.V............................               5,188                   -                     -
Others................................................                 983                 892                   602
                                                         ------------------  ------------------   -------------------
Total in non-financial institutions ..................   Ps.        71,520   Ps.        80,978    Ps.         86,007
                                                         ------------------  ------------------   -------------------
Allowances............................................   Ps.      (15,242)   Ps.       (9,611)    Ps.        (7,074)
                                                         ------------------  ------------------   -------------------
Total Equity investments in other companies...........   Ps.        67,919   Ps.        97,933    Ps.        114,724
                                                         ==================  ==================   ===================
</TABLE>

10.   Fixed Assets and Intangible Assets

The major  categories of Grupo Galicia's  premises and equipment and accumulated
depreciation,  as of December 31,  2001,  December 31, 2000 and as of the end of
the fiscal year ended June 30, 2000 are as follows:

<TABLE>
<CAPTION>
                                                                      Grupo Galicia                   Banco Galicia
                                                         ----------------------------------------  --------------------
                                                                      December 31,                      June 30,
                                                         ----------------------------------------
                                                               2001                 2000                  2000
                                                         ------------------  --------------------  --------------------
<S>                                                      <C>                 <C>                   <C>

Land and buildings....................................   Ps.    251,148      Ps. 229,375           Ps.  222,035
Furniture and fixtures................................           62,200           54,871                 51,557
Machinery and equipment...............................          114,450          110,863                105,960
Vehicles..............................................            2,863            2,440                  2,453
Others................................................            5,505            3,249                  3,270
Accumulated depreciation..............................        (152,842)        (136,943)              (125,211)
                                                         ------------------  --------------------  --------------------
                                                         Ps.    283,324      Ps. 263,855           Ps.  260,064
                                                         ==================  ====================  ====================
</TABLE>


                                      F-39

<PAGE>

                 Grupo Financiero Galicia S.A. and Subsidiaries

                 Notes to the Consolidated Financial Statements
   For the year ended December 31, 2001, for the six-month transition period
 ended December 31, 2000 and for the fiscal years ended June 30, 2000 and 1999
          (Expressed in thousands of Argentine pesos, except as noted)


The major  categories of intangible  assets as of December 31, 2001, 2000 and as
of the end of fiscal year ended June 30, 2000 are as follows:

<TABLE>
<CAPTION>
                                                                      Grupo Galicia                   Banco Galicia
                                                         ----------------------------------------  --------------------
                                                                      December 31,                      June 30,
                                                         ----------------------------------------
                                                               2001                 2000                  2000
                                                         ------------------  --------------------  --------------------
<S>                                                      <C>                 <C>                   <C>

Goodwill, net of accumulated amortization of
Ps. 39,078, Ps. 21,371 and Ps. 16,203,
respectively..........................................   Ps.      126,455    Ps.        84,241     Ps.     69,146
Organization and development expenses, net of
accumulated amortization of Ps. 86,422, Ps. 99,782
and Ps. 91,184, respectively..........................             99,347               85,197             78,971
                                                         ------------------  --------------------  --------------------
                                                         Ps.      225,802    Ps.       169,438     Ps.    148,117
                                                         ==================  ====================  ====================

</TABLE>

Organization   and  development   expenses  include  software  and  the  related
implementation  services purchased from third parties,  with a net book value of
Ps.72,058,  Ps.51,440 and Ps.43,002 at December 31, 2001,  December 31, 2000 and
June 30, 2000, respectively.

In addition, as described in note 2.8, the Bank capitalized certain compensation
and severance  payments.  The net book values  related to this item is Ps.356 at
June 30, 2000,  respectively,  and Ps.137 at December 31, 2000.  At December 31,
2001,  the bank  did not  mantain  any  balance  relating  to  compensation  and
severance payments.

The table below  shows the  components  of goodwill by type of activity  for the
periods presented.

<TABLE>
<CAPTION>
                                                              -----------------------------------   ----------------
                                                                        Grupo Galicia                Banco Galicia
                                                              -----------------------------------   ----------------
                                                                         December 31,                  June 30,
                                                              ----------------- -----------------   ----------------
                                                                    2001              2000               2000
                                                              ----------------- -----------------   ----------------
<S>                                                           <C>               <C>                 <C>

Investment.................................................   Ps.       10,095  Ps.        3,408    Ps.           -
Banking....................................................             64,615            20,741             19,711
Regional Credit Card issuing companies.....................             51,745            60,092             49,435
Others.....................................................                  -                 -                  -
                                                              ----------------- -----------------   ----------------
                                                              Ps.      126,455  Ps.       84,241    Ps.      69,146
                                                              ================= =================   ================
</TABLE>


11.  Miscellaneous Assets

Miscellaneous  assets  consisted  of the  following  as of  December  31,  2001,
December 31, 2000 and as of the end of the fiscal year ended June 30, 2000:




                                      F-40

<PAGE>

                 Grupo Financiero Galicia S.A. and Subsidiaries

                 Notes to the Consolidated Financial Statements
    For the year ended December 31, 2001, for the six-month transition period
  ended December 31, 2000 and for the fiscal years ended June 30, 2000 and 1999
          (Expressed in thousands of Argentine pesos, except as noted)


<TABLE>
<CAPTION>
                                                              -----------------------------------   ----------------
                                                                        Grupo Galicia                Banco Galicia
                                                              -----------------------------------   ----------------
                                                                         December 31,                  June 30,
                                                              ----------------- -----------------   ----------------
                                                                    2001              2000               2000
                                                              ----------------- -----------------   ----------------
<S>                                                           <C>               <C>                 <C>

Construction in progress...............................       Ps.       15,721  Ps.        9,112    Ps.       5,184
Deposits on fixed asset purchases......................                  1,756             3,414              3,024
Stationery and supplies................................                  1,979             2,119              2,228
Real estates properties held for sale..................                 39,456            26,596             22,640
Assets acquired through foreclosures...................                  6,269             5,899                338
Others.................................................                 40,698            34,496             40,497
                                                              ----------------- -----------------   ----------------
                                                              Ps.      105,879  Ps.       81,636    Ps.      73,911
                                                              ================= =================   ================

</TABLE>

12.  Other Allowances and Reserves

Allowances on other assets and reserves for contingencies are as follows:

<TABLE>
<CAPTION>
                                                              -----------------------------------   ----------------
                                                                        Grupo Galicia                Banco Galicia
                                                              -----------------------------------   ----------------
                                                                         December 31,                  June 30,
                                                              ----------------- -----------------   ----------------
                                                                    2001              2000               2000
                                                              ----------------- -----------------   ----------------
<S>                                                           <C>               <C>                 <C>

Allowances against asset accounts:
   Other receivables resulting from financial brokerage,
   for collection risk (a) .................................  Ps.        7,463  Ps.       10,413    Ps.      16,542
   Assets under financial leases............................               511               182                 84
   Equity investments in other companies (b) ...............            15,242             9,611              7,074
   Miscellaneous receivables, for collection risk (a) ......            25,211            10,549              5,122
Reserves for contingencies:
   For severance payments (c)...............................             1,515             1,638              1,757
   Litigations (d)..........................................            24,422            10,044              8,534
   Taxes (e)................................................                 -               655                655
   Sundry liabilities arising from credit card activities
   (f) .....................................................             3,465             2,656              2,910
   Other commitments (g) ...................................             5,235             1,076              1,010
                                                              ----------------- -----------------   ----------------
   Total reserves for contingencies.........................  Ps.       34,637  Ps.       16,069    Ps.      14,866

</TABLE>

(a) Based upon an  assessment  of debtors'  performance,  economic and financial
situation and the guarantees collateralizing their respective transactions.

(b) Includes the  estimated  losses due to the excess of the cost plus  dividend
method over the equity method in non-majority owned equity investments.

(c)  Estimated  amounts  payable  under labor  lawsuits  filed  against the Bank
relating to terminated employees.

(d)  Litigation  arising from different  types of claims from  customers  (e.g.,
claims for thefts from safe deposit boxes,  the cashing of checks that have been
fraudulently  altered,  discrepancies in deposits and payments services that the
Bank renders, etc).

(e) Probable taxes and surcharges  arising from items under  discussion with the
Argentine tax authorities.



                                      F-41

<PAGE>

                 Grupo Financiero Galicia S.A. and Subsidiaries

                 Notes to the Consolidated Financial Statements
   For the year ended December 31, 2001, for the six-month transition period
 ended December 31, 2000 and for the fiscal years ended June 30, 2000 and 1999
          (Expressed in thousands of Argentine pesos, except as noted)


(f) Reserves for rewards to be given under a credit card reward  program,  for a
guarantee of credit card  receivables  and for the  estimated  liability for the
insurance  of the payment of credit  card  balances in the event of the death of
the credit card holder.

(g) Represents the contingent commitments related to clients in categories other
than the "normal" categories under Argentine Banking GAAP.


13.  Other  Liabilities  Resulting from Financial  Brokerage-  Argentine Central
     Bank

The Bank  borrows  funds  under  various  credit  facilities  obtained  from the
Argentine Central Bank for specific purposes as follows:

<TABLE>
<CAPTION>
                                                              -----------------------------------   ----------------
                                                                        Grupo Galicia                Banco Galicia
                                                              -----------------------------------   ----------------
                                                                         December 31,                  June 30,
                                                              ----------------- -----------------   ----------------
                                                                    2001              2000               2000
                                                              ----------------- -----------------   ----------------
<S>                                                           <C>               <C>                 <C>

Description
Long-term liabilities:
   Other...............................................       Ps.      316,479  Ps.        2,585    Ps.       3,230
   Argentine Central Bank's liquidity loans (*)........              1,234,000                 -                  -
                                                              ----------------- -----------------   ----------------
Total long-term liabilities............................       Ps.    1,550,479  Ps.        2,585    Ps.       3,230
Short-term liabilities:
   Other Central Bank obligations......................                    311             1,850              2,696
                                                              ----------------- -----------------   ----------------
Accrued interest.......................................                  6,266                15                 19
                                                              ----------------- -----------------   ----------------
                                                              Ps.    1,557,056  Ps.        4,450    Ps.       5,945
                                                              ================= =================   ================

</TABLE>

(*)  Decree  No.905/02  of  the  Executive  Power  established  the  method  for
     repayment, the details of which are pending.


14.  Other   Liabilities   Resulting   from  Financial   Brokerage-   Banks  and
     International Entities, and Loans from Domestic Financial Institutions.

The Bank also borrows funds under different credit  arrangements  from local and
foreign banks and international lending agencies as follows:




                                      F-42

<PAGE>
                 Grupo Financiero Galicia S.A. and Subsidiaries

                 Notes to the Consolidated Financial Statements
   For the year ended December 31, 2001, for the six-month transition period
 ended December 31, 2000 and for the fiscal years ended June 30, 2000 and 1999
          (Expressed in thousands of Argentine pesos, except as noted)


<TABLE>
<CAPTION>

                                                                     Grupo Galicia                 Banco Galicia
                                                          -------------------------------------  -------------------
                                                                      December 31,                    June 30,
                                                          -------------------------------------  -------------------
                                                                2001               2000                 2000
                                                          ------------------ ------------------  -------------------
<S>                                                       <C>                <C>                 <C>
Description
  Bank and International Entities
   Long term liabilities:
      Compania Interamericana de Inversiones..........    Ps.      69,500    Ps.      99,121     Ps.      100,252
      International Finance Corporation (I.F.C.)......            300,946            302,881              309,692
      Nederlands Financierings Maatschappij Voor
      Ontwikkeling Slande N.V  (F.M.O.) ..............             19,294             25,826               28,650
      Other foreign banks.............................            104,850              4,562               20,597
                                                          ------------------ ------------------  -------------------
               Total long-term liabilities............    Ps.     494,590    Ps.     432,390     Ps.      459,191

     Short-term liabilities:
          Other lines of credit from foreign banks....            257,480            470,962              526,055
                                                          ------------------ ------------------  -------------------
Total Bank and International Entities.................    Ps.     752,070    Ps.     903,352     Ps.      985,246
                                                          ------------------ ------------------  -------------------

  Domestic and Financial Institutions
   Long term liabilities:
      BICE (Banco de inversiones y Comerccio
      Exterior) ......................................            140,436            107,856              114,450
                                                          ------------------ ------------------  -------------------
                Total long term liabilities...........    Ps.     140,436    Ps.     107,856     Ps.      114,450

  Short-term liabilities:
      Other lines of credit from domestic banks.......             19,423             54,946               48,002
                                                          ------------------ ------------------  -------------------
Total Domestic and Financial Institutions..............   Ps.     159,859    Ps.     162,802     Ps.      162,452
                                                          ------------------ ------------------  -------------------
                                                          ------------------ ------------------  -------------------
TOTAL..................................................   Ps.     911,929    Ps.   1,066,154     Ps.    1,147,698
                                                          ================== ==================  ===================

</TABLE>

Accrued interest on the above liabilities was Ps.23,599, Ps.29,526, Ps.19,689 at
December 31, 2001, 2000, June 30, 2000, respectively.

Loans from Banco de  Inversion  y Comercio  Exterior  for the  purchase of fixed
assets with an interest rate of 2% per annum, with maturities  ranging from 1 to
9 years.  In  addition,  there are loans  from  Banco de  Inversion  y  Comercio
Exterior for financing investment  projects,  increasing the export capacity and
financing the Global Multisectorial  Credit Program.  These loans carry interest
at floating rates that range between 4.41% and 8.98%,  with  maturities  ranging
between 1 and 10 years. Maturities of borrowings from the Cia. Interamericana de
Inversiones and from the F.M.O.  are between 1 and 7 years,  with interest rates
varying from between 5.00% to 9.75%.

Loans from the International Finance Corporation are at variable interest rates,
ranging  from  6.10%  to  7.15%  with  maturities  between  1 and 7  years.  The
liabilities  with other  foreign  banks  amounting to Ps.104,850 at December 31,
2001,  correspond  to several banks with  maturities  up to 4 years,  and annual
interest rates between 3.00 and 7.74%.

Short-term  credit lines with domestic  banks have a  weighted-average  interest
rate of approximately  9.00%.  Short-term  credit lines from other foreign banks
are used for import  financing  and export  prefinancing.  The average  interest
rates agreed with these banks range from 4.35% to 7.51%.

As of December 31, 2001, maturities of the above long-term loans for each of the
following five fiscal years and thereafter are as follows:




                                      F-43

<PAGE>

                 Grupo Financiero Galicia S.A. and Subsidiaries

                 Notes to the Consolidated Financial Statements
   For the year ended December 31, 2001, for the six-month transition period
 ended December 31, 2000 and for the fiscal years ended June 30, 2000 and 1999
          (Expressed in thousands of Argentine pesos, except as noted)


           2002............................ Ps.   337,961
           2003............................       112,249
           2004............................        88,354
           2005............................        34,943
           2006............................        24,343
           Thereafter......................        37,176
                                            --------------
                                            Ps.   635,026
                                            ==============

The Bank had available unused lines of credit as follows.

<TABLE>
<CAPTION>
                                                               Grupo Galicia                       Banco Galicia
                                               ---------------------------------------------  -----------------------
                                                   December 31,             December 31,              June 30,
                                               ----------------------  -----------------------  ---------------------
                                                       2001                     2000                    2000
                                               ----------------------  -----------------------  ---------------------
<S>                                            <C>                     <C>                      <C>
Short-term lines.........................      Ps.     1,331,481       Ps.            611,903   Ps.        1,071,700
Long-term lines..........................                509,503                      460,540                456,909
                                               ----------------------  -----------------------  ---------------------
                                               Ps.     1,840,984       Ps.          1,072,443   Ps.        1,528,609
                                               ======================  =======================  =====================
</TABLE>

No commitment fees are paid on these lines of credit.


15.  Other   Liabilities   Resulting   from  Financial   Brokerage-   Negotiable
     Obligations

The Board of Directors is authorized to determine all of the  conditions of each
issuance of negotiable obligations,  including timing,  currency,  price, manner
and  payment  terms.  The amounts  outstanding  and the terms  corresponding  to
outstanding negotiable obligations are as follows:

<TABLE>
<CAPTION>
                                                                               Grupo Galicia             Banco Galicia
                                                                      --------------------------------  ----------------
                                                                               December 31,                June 30,
                                                             Annual   --------------------------------  ----------------
                                                            Interest
                                                  Maturity    Rate         2001            2000              2000
                                                  -------- ---------- -------------- -----------------  ----------------
<S>                                               <C>      <C>        <C>            <C>                <C>
Long-term liabilities:
M.I.G.A. S 2
  (Semi-annual interest, principal payable
  every six months) ............................     2005     4.00%    Ps.   10,319              -                 -
M.I.G.A. S 1
  (Semi-annual interest, principal payable
  every six months) ............................     2005     4.00%          43,170   Ps.   49,187      Ps.        -
Seventh series
   (Semi-annual interest, principal payable at
   maturity)....................................     2003     9.00%         199,032        198,510           198,237
Sixth  series
  (Semi-annual interest, principal payable at
  maturity) ....................................     2002     5.48%         149,851        149,683           149,550
Global Program - 3rd Series
   (Semi-annual interest, principal payable at
   maturity) ...................................     2000    10.00%               -              -            99,887
Global Program - 1st Series (F.R.N.)
  (Semi-annual interest, principal payable at
  maturity) ....................................     2001     8.75%               -        249,320           248,883
                                                                       ------------   ------------      ------------
 Total long-term liabilities                                           Ps.  402,372   Ps.  646,700      Ps.  696,557
                                                                       ============   ============      ============


Short-term liabilities:
Tarjetas del Mar  4th Series
  (Interest fixed, principal payable at
   maturity) ..................................      2000    10.03%               -              -            11,957
Tarjetas del Mar 5th Series
  (Interest fixed, principal payable at
  maturity) ...................................      2000     9.06%               -              -             7,720


</TABLE>

                                      F-44

<PAGE>

                 Grupo Financiero Galicia S.A. and Subsidiaries

                 Notes to the Consolidated Financial Statements
    For the year ended December 31, 2001, for the six-month transition period
  ended December 31, 2000 and for the fiscal years ended June 30, 2000 and 1999
          (Expressed in thousands of Argentine pesos, except as noted)


<TABLE>
<CAPTION>

<S>                                               <C>      <C>        <C>            <C>                <C>
Tarjeta Naranja 4th Series
  (Interest fixed, principal payable at
  maturity) ...................................      2000     9.42%               -              -            18,956
Tarjeta Naranja 5th Series
  (Interest fixed, principal payable at
  maturity) ...................................      2000     9.88%               -              -            28,897
Tarjeta Comfiar 3rd  Series
  (Interest fixed, principal payable at
  maturity) ...................................      2000    10.27%               -              -            14,975
Tarjeta Comfiar 4th Series
  (Interest fixed, principal payable at
  maturity) ...................................      2000     9.24%               -              -            12,522
Tarjetas Cuyanas 1st  Series
  (Interest fixed, principal payable at
  maturity) ...................................      2000     9.42%               -              -            14,573
United States Commercial Paper 3rd Series
  (Semi-annual interest, principal payable at
  maturity) ...................................      2000     6.15%               -              -           164,389
Tarjeta Naranja 8th Series
  (Interest fixed, principal payable at
  maturity) ...................................      2001    10.80%               -         29,192                 -
Tarjetas del Sur 1st Series
  (Interest fixed, principal payable at
  maturity) ...................................      2001    13.00%               -          9,844                 -
Tarjetas del Mar 6th Series
  (Interest fixed, principal payable at
  maturity) ...................................      2001     9.91%               -         10,816                 -
Tarjetas del Mar 7th Series
  (Interest fixed, principal payable at
  maturity) ...................................      2001     9.10%               -          7,247                 -
Tarjeta Naranja 6th Series
  (Interest fixed, principal payable at
  maturity) ...................................      2000     9.42%               -         19,060                 -
Tarjeta Naranja 7th Series
  (Interest fixed, principal payable at
  maturity) ...................................      2000    10.23%               -         19,489                 -
Tarjeta Comfiar 5th Series
  (Interest fixed, principal payable at
  maturity) ...................................      2000    10.28%               -         20,841                 -
United States Commercial Paper 4th Series
  (Semi-annual interest, principal payable at
  maturity) ...................................      2001     6.56%               -        272,157           273,269
United States Commercial Paper 5th Series
  (Semi-annual interest, principal payable at
  maturity) ...................................      2001     6.50%               -        186,754                 -
Tarjetas del Mar 9th Series
  (Interest fixed, principal payable at
  maturity) ...................................      2002    16.77%    Ps.    7,963              -                 -
Tarjeta Naranja 26th Series
  (Interest fixed, principal payable at
  maturity) ...................................      2002    16.13%          27,631              -                 -
Tarjetas Cuyanas 11th Series
  (Interest fixed, principal payable at
  maturity) ...................................      2002    15.51%           4,976              -                 -
Tarjeta Comfiar 9th Series
  (Interest fixed, principal payable at
   maturity) ..................................      2002    16.22%          24,247              -                 -
Tarjeta Naranja 6th Series
  (Interest fixed, principal payable at
   maturity) ..................................      2002    17.18%          19,413              -                 -
Tarjetas Cuyanas  9th Series
  (Interest fixed, principal payable at
  maturity) ...................................      2002    16.10%           9,897              -                 -
Tarjetas Cuyanas 10th Series
  (Interest fixed, principal payable at
   maturity) ..................................      2002    16.26%           1,979              -                 -
Tarjeta Naranja 24th Series
  (Interest fixed, principal payable at
  maturity) ...................................      2002    16.70%          52,775              -                 -
Tarjetas del Mar 10th Series
  (Interest fixed, principal payable at
  maturity) ...................................      2002    14.92%          14,991              -                 -

Tarjeta Naranjar 25th Series
  (Interest fixed, principal payable at
  maturity) ...................................      2002    15.82%          23,971              -                 -
United States Commercial Paper 6th Series
  (Semi-annual interest, principal payable at
  maturity)....................................      2002     4.14%         248,962              -                 -
                                                                      --------------  ----------------  ------------
                                                                            436,805        575,400           547,258
                                                                      --------------  ----------------  ------------
                                                                      Ps.   839,177   Ps.1,222,100      Ps.1,243,815
                                                                      ==============  ================  ============

</TABLE>

Interest and principal on all of the above debt  securities  are payable in U.S.
dollars.



                                      F-45

<PAGE>


                 Grupo Financiero Galicia S.A. and Subsidiaries

                 Notes to the Consolidated Financial Statements
    For the year ended December 31, 2001, for the six-month transition period
  ended December 31, 2000 and for the fiscal years ended June 30, 2000 and 1999
          (Expressed in thousands of Argentine pesos, except as noted)


Accrued interest on the above liabilities was Ps.10,352, Ps.12,161 and Ps.12,072
at December 31, 2001, 2000 and June 30, 2000 respectively.

Maturities  of  long-term  negotiable  obligations  at December  31, 2001 are as
follows:

     2002............................................. Ps.        149,851
     2003.............................................            199,032
     2004.............................................                  -
     2005.............................................             53,489
                                                      -------------------
     Total............................................ Ps.        402,372
                                                      ===================

The New York branch  launched a medium-term  debt  securities  program for up to
U.S.$500  million,  of which U.S.$200  million were issued at December 31, 2001.
The amounts outstanding are as follows:

<TABLE>
<CAPTION>

                                                                                  Grupo Galicia            Banco Galicia
                                                                         --------------------------------  ---------------
                                                                                 December 31,                June 30,
                                                               Annual    --------------------------------  ---------------
                                                              Interest
                                                   Maturity    Rate         2001            2000              2000
                                                  ---------- ---------- ---------------  -----------------  ---------------
<S>                                               <C>         <C>        <C>             <C>                <C>
Long-term liabilities:
    New York - Third series
    (Semi-annual Interest, principal payable at
    maturity)....................................     2002      7.88%   Ps.    99,856    Ps.    99,634      Ps.    99,548
    New York Fourth series
    (Semi-annual Interest, principal payable at
    maturity)....................................     2002      8.39%          99,830           99,486                  -
                                                                        ---------------  -----------------  ---------------
      Total long-term liabilities                                       Ps.   199,686    Ps.   199,120      Ps.    99,548
                                                                        ---------------  -----------------  ---------------
</TABLE>

Accrued  interest on the above mentioned debt securities were Ps.3,007  Ps.3,690
and Ps.6,694 at December 31, 2001, 2000 and June 30, 2000, respectively.

<TABLE>
<CAPTION>
                                                                                       Grupo Galicia
                                                                           ---------------------------------------
                                                                    Interest      December 31,        December 31,
                                                                  ------------------------------  ----------------------
                                                       Maturity       Rate            2001                2000
                                                                  ------------------------------  ----------------------
<S>                                                    <C>         <C>             <C>              <C>
Short-term liabilities:
    Uruguay - First Series ......................     2001           6,33%                    -   Ps.           82,553

</TABLE>

The balances of the  aforementioned  debt  securities  program were  included in
"Other" under the caption "Other liabilities resulting from financial brokerage"
in the accompanying balance sheet.


16.  Directors' and Syndics' Fees

The  breakdown  of the  caption  Directors'  and  syndics'  fees  in the  income
statement is as follows:




                                      F-46

<PAGE>
                 Grupo Financiero Galicia S.A. and Subsidiaries

                 Notes to the Consolidated Financial Statements
    For the year ended December 31, 2001, for the six-month transition period
  ended December 31, 2000 and for the fiscal years ended June 30, 2000 and 1999
          (Expressed in thousands of Argentine pesos, except as noted)


<TABLE>
<CAPTION>
                                                Grupo Galicia                      Banco Galicia
                                       -----------------------------------  -------------------------------------
                                                         Six-month
                                       Year ended       Period ended              Years ended June 30,
                                       December 31,     December 31,
                                       ---------------- ------------------  -------------------------------------
                                           2001              2000                 2000               1999
                                       ---------------- ------------------  -----------------  ------------------
<S>                                    <C>               <C>                <C>                <C>

GFG director's fees.................     Ps.      60      Ps.        31                  -                   -
GFG syndic's fees...................              60                 60                  -                   -
Banco Galicia Directors' statutory
fees................................          10,592              8,967     Ps.     29,446     Ps.      28,910
Banco Galicia Directors'
administrative fees.................           2,574              1,247              2,499               2,498
Banco Galicia Syndics' fees.........             221                115                300                 300
Subsidiary companies directors' and
syndics' fees.......................           2,571              1,504              4,451               3,538
                                         ---------------  ----------------  -----------------  ------------------
                                         Ps.  16,078      Ps.    11,924     Ps.     36,696     Ps.      35,246
                                         ===============  ================  =================  ==================

</TABLE>


17.  Contributions to the Social Services Institute for Banking Employees

For the year ended June 30, 1998, the  contributions  that the Bank was required
to make to the Social Services Institute for Banking Employees (the "ISSB") were
reduced from 1% to zero by a decree of the National Executive Power. As a result
of this decree,  the ISSB brought a legal action requesting the reinstatement of
the 1%  contribution.  During the  Bank's  fiscal  years  2000 and 1999,  the 1%
contribution  would have amounted  approximately  to Ps.14,300  and Ps.  12,000,
respectively.  For the fiscal year ended December 31, 2001 and for the six-month
period  ended  December  31,  2000,  the 1%  contribution  would  have  amounted
approximately  to Ps.16,000 and Ps.7,900.  This amount has not been provided for
in the  financial  statements,  as  management  has  determined  that  it is not
probable that the legal action will succeed.

Currently,  the Bank  Employees'  Health Care Scheme (the  "OSBA") has brought a
legal action  against all the financial  institutions  in the system,  which has
already been answered.  In addition,  the Federal Public Revenue  Authority (the
"AFIP")  issued Order No. 6/99  ratifying  that the OSBA is a legal entity other
than  ISSB,  therefore  it does not  have  any  legal  authority  to  claim  the
contribution.  To date this situation has not been resolved, however, management
believes that a possible unfavorable  resolution of this matter would not have a
significant  impact  on  the  Bank'  s  statements  of  income,  cash  flows  or
shareholders' equity.


18.  Balances in Foreign Currency

The balances of assets,  liabilities  and  memorandum  accounts  denominated  in
foreign currencies (principally in U.S. dollars) are as follows:



                                      F-47

<PAGE>

                 Grupo Financiero Galicia S.A. and Subsidiaries

                 Notes to the Consolidated Financial Statements
    For the year ended December 31, 2001, for the six-month transition period
  ended December 31, 2000 and for the fiscal years ended June 30, 2000 and 1999
          (Expressed in thousands of Argentine pesos, except as noted)


<TABLE>
<CAPTION>

                                                                     Grupo Galicia                  Banco Galicia
                                                         --------------------------------------   -------------------
                                                                     December 31,                      June 30,
                                                         --------------------------------------
                                                                2001               2000                  2000
                                                         ------------------- ------------------   -------------------
<S>                                                      <C>                 <C>                  <C>

   Cash and due from banks.............................  Ps.        284,539  Ps.       339,416    Ps.        413,541
   Government and corporate securities.................             106,902             62,062               397,128
   Loans...............................................           7,878,911          7,379,090             7,232,648
   Other receivables resulting from financial brokerage           1,477,749          4,575,164             3,617,285
   Assets under financial leases.......................              44,216             17,151                 8,157
   Equity investments in other companies...............               6,131             19,146                22,567
   Miscellaneous receivables...........................             312,836            244,833               231,818
   Bank premises and equipment.........................               5,714              6,118                 5,907
   Intangible assets...................................               2,876              3,229                 2,848
   Miscellaneous assets................................                 737                 43                    45
   In process items....................................               7,302             18,385                   843
                                                         ------------------- ------------------   -------------------
Total .................................................  Ps.     10,127,913  Ps.    12,664,637    Ps.     11,932,787
                                                         =================== ==================   ===================
Liabilities:
   Deposits............................................  Ps.      4,973,124  Ps.     6,287,356    Ps.      6,070,741
   Other liabilities resulting from financial
     brokerage.........................................           3,338,034          5,898,214             5,513,586
   Sundry liabilities..................................              12,438              4,950                 2,270
   In process items....................................               3,816              1,335                   107
                                                         ------------------- ------------------   -------------------
                                                         ------------------- ------------------   -------------------
Total..................................................  Ps.      8,327,412  Ps.    12,191,855    Ps.     11,586,704
                                                         =================== ==================   ===================
</TABLE>


19.  Transactions with Related Parties

Grupo  Galicia   entered  into  certain   transactions   with   controlled   and
equity-method  subsidiaries  during the fiscal  year ended  December  31,  2001,
during the six-month  period ended  December 31, 2000 and during the fiscal year
ended June 30, 2000 respectively, with the following revenues and expenses:

<TABLE>
<CAPTION>
                                                                     Grupo Galicia                  Banco Galicia
                                                         --------------------------------------   -------------------
                                                             Year ended          Six-month             June 30,
                                                            December 31,       Period ended
                                                                                December 31,
                                                         --------------------------------------
                                                                2001               2000                  2000
                                                         ------------------- ------------------   -------------------
<S>                                                      <C>                 <C>                  <C>

   Revenues recognized.................................  Ps.        141,614  Ps.        66,840    Ps.         13,346
   Expenses incurred...................................              71,584             42,723                75,933

</TABLE>

20.  Breakdown of captions included in the Income Statement




                                      F-48

<PAGE>

                 Grupo Financiero Galicia S.A. and Subsidiaries

                 Notes to the Consolidated Financial Statements
    For the year ended December 31, 2001, for the six-month transition period
  ended December 31, 2000 and for the fiscal years ended June 30, 2000 and 1999
          (Expressed in thousands of Argentine pesos, except as noted)


<TABLE>
<CAPTION>


                                                           Grupo Galicia                      Banco Galicia
                                                  --------------------------------
                                                                      Six-month
                                                   Year ended        period ended
                                                   December 31       December 31,           Years ended June 30,
                                                  --------------------------------   ---------------------------------
                                                      2001              2000              2000             1999
                                                  ----------------  --------------   ---------------  ----------------
<S>                                               <C>               <C>              <C>              <C>

Financial Income
Other interest income resulting from financial
brokerage:
Interest on structured notes....................  Ps.      37,042   Ps.    18,573    Ps.     37,639   Ps.      35,531
Interest on purchased certificates of deposits..              113              94               319             4,008
Others..........................................           12,442           1,336               791            19,353
                                                  ----------------  --------------   ---------------  ----------------
                                                  Ps.      49,597   Ps.    20,003    Ps.     38,749   Ps.      58,892
                                                  ----------------  --------------   ---------------  ----------------
Others
Premiums on reverse repos transactions..........           22,170          35,755            45,855            24,801
Difference in quotation of gold and foreign
currency transactions...........................           21,201           8,008            20,285            23,280
Premiums on foreign currency transactions.......           28,921          23,040            49,275             7,696
Others..........................................            3,576             895               740                 -
                                                  ----------------  --------------   ---------------  ----------------
                                                  Ps.      75,868   Ps.    67,698    Ps.    116,155   Ps.      55,777
                                                  ----------------  --------------   ---------------  ----------------
Financial Expenses
Other interest expense resulting from financial
brokerage:
Discounts on negotiable obligations.............           20,195          15,996            33,345            22,917
Interest on negotiable obligations..............           71,285          42,689            70,372            73,257
Interest on other liabilities resulting from
financial brokerage from other banks and
international entities..........................          105,413          60,986            94,410           100,682
                                                  ----------------  --------------   ---------------  ----------------
                                                  Ps.     196,893   Ps.   119,671    Ps.    198,127   Ps.     196,856
                                                  ----------------  --------------   ---------------  ----------------
Others
Contributions to the deposit guarantee system...           15,631           7,484            19,971            23,339
Premiums on repo transactions...................           35,755          28,256            50,267            58,314
Contributions and taxes on financial income.....           26,593          10,442            21,523            18,803
Others..........................................            2,837           1,731             2,696             3,922
                                                  ----------------  --------------   ---------------  ----------------
                                                  Ps.      80,816   Ps.    47,913    Ps.     94,457   Ps.     104,378
                                                  ----------------  --------------   ---------------  ----------------
Income from services
Others
Commissions on credit cards.....................          136,260          68,467           156,856           146,831
Safety rental...................................            3,353           1,604             3,350             3,485
Others..........................................           70,076          30,860            62,851            52,497
                                                  ----------------  --------------   ---------------  ----------------
                                                  Ps.     209,689   Ps.   100,931    Ps.    223,057   Ps.     202,813
                                                  ----------------  --------------   ---------------  ----------------

</TABLE>



                                      F-49


<PAGE>

                 Grupo Financiero Galicia S.A. and Subsidiaries

                 Notes to the Consolidated Financial Statements
    For the year ended December 31, 2001, for the six-month transition period
  ended December 31, 2000 and for the fiscal years ended June 30, 2000 and 1999
          (Expressed in thousands of Argentine pesos, except as noted)


<TABLE>
<CAPTION>

                                                           Grupo Galicia                     Banco Galicia
                                                  --------------------------------  ---------------------------------
                                                                   Six-month
                                                   Year ended      period ended
                                                   December 31,    December 31,           Years ended June 30,
                                                  --------------------------------  ---------------------------------
                                                      2001              2000             2000              1999
                                                  ----------------  --------------  ----------------  ---------------
<S>                                               <C>               <C>             <C>               <C>

Expenses for services
Others
Gross revenue taxes.............................  Ps.      19,040  Ps.     9,296    Ps.      18,732   Ps.     14,772
Linked with credit cards........................           14,569          6,133             13,581           20,684
Others..........................................           16,038          6,330              8,335            4,273
                                                  ---------------- --------------   ----------------  ---------------
                                                  Ps.      49,647  Ps.    21,759    Ps.      40,648   Ps.     39,729
                                                  ================ ==============   ================  ===============
Administrative expenses
Other operating expenses
Rentals.........................................           28,364         13,270             25,280           22,836
Electricity and communications..................           31,808         16,529             35,110           34,418
Amortization of organization and development
expenses........................................           36,634         15,505             33,690           28,240
Depreciation of bank premises and equipment.....           27,983         12,597             24,993           20,998
Maintenance and repair expenses.................           20,531          9,723             19,922           17,992
Other operating expenses........................           24,067         11,426             22,613           22,344
                                                  ---------------- --------------   ----------------  ---------------
                                                  Ps.     169,387  Ps.    79,050    Ps.     161,608   Ps.    146,828
                                                  ================ ==============   ================  ===============
Miscellaneous income
Interest on miscellaneous receivables (1).......          135,304         11,875             22,465           24,097
Premiums and commissions on  insurance business.           77,623              -                  -                -
Reversal of income tax provision................           47,127              -                  -                -
Others..........................................           13,866          4,775              8,521           12,934
                                                  ---------------  --------------   ----------------  ---------------
                                                  Ps.     273,920  Ps.    16,650    Ps.      30,986   Ps.     37,031
                                                  ================ ==============   ================  ===============
Miscellaneous losses
Claims..........................................            4,783          2,751              4,766            4,867
Amortization of goodwill........................           13,708          5,207              8,224           10,007
Commissions and expenses on insurance business .           67,282              -                  -                -
Others..........................................           16,315         13,225             14,198            7,854
                                                  ---------------- --------------   ----------------  ---------------
                                                  Ps.     102,088  Ps.    21,183    Ps.      27,188   Ps.     22,728
                                                  ================ ==============   ================  ===============
</TABLE>

(1)  Includes income related to securities sold under repurchase agreements.


21.  Income Tax

Grupo Galicia  recognizes income tax charges and liabilities on the basis of the
tax returns corresponding to each fiscal year.

The income tax amounts  estimated at December 31, 2001,  2000, June 30, 2000 and
1999 amounted to Ps.72,182,  Ps.52,373,  Ps.74,226 and Ps.72,455,  respectively.
The statutory income tax rate at December 31, 2001, 2000, June 30, 2000 and 1999
was 35%.



                                      F-50


<PAGE>

                 Grupo Financiero Galicia S.A. and Subsidiaries

                 Notes to the Consolidated Financial Statements
    For the year ended December 31, 2001, for the six-month transition period
  ended December 31, 2000 and for the fiscal years ended June 30, 2000 and 1999
          (Expressed in thousands of Argentine pesos, except as noted)


22.  Shareholders'  Equity  and  Restrictions  Imposed  on the  Distribution  of
     Profits

The  distribution  of retained  earnings in the form of dividends is governed by
the Argentine  Commercial  Companies Law and Resolution  N(degree) 290/97 of the
National  Securities  Commission ("the CNV"). These laws oblige Grupo Galicia to
transfer 5% of its net income to a legal  reserve  until the reserve  reaches en
amount equal to 20% of the capital stock.

Under the Argentine Central Bank regulation, 20.0% of the Bank's net income must
be allocated to a legal reserve,  which is reflected in the statement of changes
in  shareholders'  equity.  Under  Argentine law, cash dividends may be declared
only out of unrestricted retained earnings.

The "Adjustments to shareholders' equity" caption in the statement of changes in
shareholders' equity represents:

o    the balance of the 1981 technical valuation of fixed assets of the Bank and
     its  equity  investees,  available  to  absorb  losses on the  disposal  or
     devaluation of such fixed assets;

o    the inflation  adjustment related to capital stock at the beginning of each
     period,  adjusted  to  constant  Pesos of August 31,  1995.  Capital  stock
     maintains its nominal (par) value at each balance sheet date; and

o    the  inflation  adjustment  related to the  increase in capital  stock from
     stock distributions (adjustments to capital). The adjustment represents the
     effect of  inflation  from the stock  distribution  date to the end of each
     period, and is restated to constant Pesos as of August, 31, 1995.

The Bank has annually  distributed  shares of common  stock to its  then-current
shareholders in proportion to their holdings.  Such  distributions  of stock are
characterized  under Argentine law as  capitalization  of retained  earnings and
capitalization  of adjustments to capital.  The  shareholders  must approve such
distributions of stock.


23.  Minimum Capital Requirements

The  capital  adequacy  of Grupo  Galicia  is not under the  supervision  of the
Argentine  Central Bank. Grupo Galicia,  has a minimum capital  requirement from
the Commercial Companies Law of Ps.12.

Under the Argentine Central Bank  regulations,  the Bank is required to maintain
minimum levels of equity capital,  as defined  ("minimum  equity").  The minimum
equity, is based upon  risk-weighted  assets,  and the balances of Bank premises
and equipment,  intangible assets and unquoted equity investments.  The required
minimum  equity  and  the  Bank's  equity  calculated  under  the  Central  Bank
requirements are as follows:

<TABLE>
<CAPTION>

                                                                       Banco Galicia
                                         ---------------------------------------------------------------------------
                                                                                           Shareholder's Equity as
                                            Minimum Equity        Shareholder's Equity     a % of minimum equity
                                         ---------------------------------------------------------------------------
<S>                                      <C>                      <C>                      <C>
December 31, 2001 .....................  Ps.         853,155      Ps.       1,214,166              142.31
December 31, 2000......................  Ps.         899,576      Ps.       1,149,053              127.73
June 30, 2000..........................  Ps.         812,079      Ps.       1,178,610              145.13

</TABLE>




                                      F-51

<PAGE>

                 Grupo Financiero Galicia S.A. and Subsidiaries

                 Notes to the Consolidated Financial Statements
    For the year ended December 31, 2001, for the six-month transition period
  ended December 31, 2000 and for the fiscal years ended June 30, 2000 and 1999
          (Expressed in thousands of Argentine pesos, except as noted)


24.  Earnings per Share

Stock  distributions (see note 22 and 32) were declared to shareholders in 2001.
Accordingly,  all common share data  include the effects of such  distributions.
Earnings  per  share is  based  upon  the  weighted  average  of  common  shares
outstanding in the amount of  1,092,407,017  and  1,023,673,418 of Grupo Galicia
for the year ended December 31, 2001 and for the six-month period ended December
31, 2000.  All share and per share  amounts  corresponding  to June 30, 2000 and
1999,  have been  restated  to reflect the effect of the public  exchange  offer
between Grupo Galicia and the Bank,  accepted on July 26, 2000. This restatement
is based upon the amount of common  shares of  1,171,704,540  assuming a 100% of
ownership after the exchange.

At December 31, 2001 and 2000,  June 30, 2000 and 1999 there were no convertible
subordinated  negotiable obligations  outstanding and therefore for the purposes
of calculating earnings per share Grupo Galicia had a simple capital structure.


25.  Contribution to the Deposit Guarantee System

Pursuant to its  Communique  "A" 2337,  the Argentine  Central Bank  established
rules for  applying  the deposit  guarantee  system and the way of settling  the
related contributions.  Furthermore, the National Executive Power through Decree
No.1127/98  dated  September 24, 1998 extended  this  guarantee  system to cover
demand  deposits and time  deposits of up to Ps.30 stated  either in pesos or in
foreign  currency.  This  system  does  not  cover  the  deposits  made by other
financial institutions (including the time deposit certificates acquired through
a secondary  transaction),  the  deposits  made by persons  related to the Bank,
either directly or indirectly, deposits of securities, acceptances or guarantees
and those set up after July 1, 1995 at an interest  rate  exceeding the one that
the  Argentine  Central  Bank  regularly  establishes  based  on a daily  survey
conducted by it. Nor does this system cover  deposits  whose  ownership has been
acquired through  endorsement and placement,  which offer incentives in addition
to the interest  rate. The System has been  implemented  through the creation of
the Deposit  Insurance  Fund,  which is managed by a company  called  Seguros de
Depositos S.A.  (SEDESA).  The  shareolders of SEDESA are the Argentine  Central
Bank and the financial institutions in the proportion determined for each one by
the Argentine Central Bank based on the contributions made to the said fund.

Through  Communique  "A" 3068,  the  Argentine  Central  Bank reduced the normal
contribution to the said Fund,  which amounted to 0.03%, to half,  provided that
the financial  institution  arranges with SEDESA 36-month loans, to be earmarked
for the Deposit  Insurance Fund.  Interest on these loans has been determined on
the basis of the yield obtained by the aforesaid Fund on its placements.

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

As from December 2001,  Argentine  Central Bank  Communique "A" 3358 resolved to
increase the contribution to 0.03%.



                                      F-52

<PAGE>

                 Grupo Financiero Galicia S.A. and Subsidiaries

                 Notes to the Consolidated Financial Statements
    For the year ended December 31, 2001, for the six-month transition period
  ended December 31, 2000 and for the fiscal years ended June 30, 2000 and 1999
          (Expressed in thousands of Argentine pesos, except as noted)


At  December  31,  2001  and  2000  and  June  30,  2000,  the  Bank  recognized
contributions  amounting to  Ps.15,631,  Ps.7,484 and  Ps.19,971,  respectively,
under the account  captioned  "Financial  Expenses - Contribution to the Deposit
Guarantee System".


26.  Employee Benefit Plans

Neither  the  Bank  nor  its  subsidiaries  maintain  pension  plans  for  their
personnel.  The Bank is obligated to pay employer  contributions to the National
Pension Plan System, determined on the basis of the total monthly payroll.

These expenses aggregated Ps.17,054,  Ps.7,106,  Ps.14,444 and Ps.18,083 for the
fiscal year ended December 31, 2001, for the  sixth-month  period ended December
31, 2000 and for the years ended June 30, 2000 and 1999, respectively.

On  November  19,  2001,  the  beneficiaries  of the  Galicia  2004  Trust  were
designated,  as stipulated in the "Framework Trust Agreement" signed on November
4, 1999, to implement an incentive program in favor of certain executives of the
Bank. Of the total amount of Ps.4,000  transferred to the trustee by the Galicia
2004  Trust,  which  were used for the  purchase  of shares of Grupo  Financiero
Galicia  S.A.,  855,442  shares  and  189,116  ADS  were  acquired.  The  amount
transferred has been expensed as incurred.

Specific  beneficiaries were awarded 855,442 shares and 28,046.60 ADS, and 3,400
ADS  that  were not  awarded  were  returned  to the  trustor.  The  balance  of
157,669.40 ADS formed the Galicia 2005 Trust.



                                      F-53

<PAGE>

                 Grupo Financiero Galicia S.A. and Subsidiaries

                 Notes to the Consolidated Financial Statements
    For the year ended December 31, 2001, for the six-month transition period
  ended December 31, 2000 and for the fiscal years ended June 30, 2000 and 1999
          (Expressed in thousands of Argentine pesos, except as noted)


27.  Income Statements and Balance Sheets

The presentation of financial statements according to the Argentine Central Bank
rules  differs  significantly  from the format  required by the  Securities  and
Exchange Commission under Rules 210.9 to 210.9-07 of Regulation S-X (Article 9).
The income  statements  presented  below  discloses the  categories  required by
Article 9:

<TABLE>
<CAPTION>
                                                ---------------------------------------------------------------------
                                                          Grupo Galicia                      Banco Galicia
                                                ---------------------------------------------------------------------
                                                                     Six-month
                                                   Year ended       period ended         Years ended June 30,
                                                   December 31,     December 31,
                                                -----------------  --------------------------------------------------
                                                      2001              2000             2000              1999
                                                -----------------  ---------------- ----------------  ---------------
<S>                                             <C>                <C>              <C>               <C>
Interest income:
Interest and fees on loans..................... Ps.    1,458,063   Ps.     655,000  Ps.   1,202,325   Ps.  1,039,187
Interest and dividends on investment securities:
Tax-exempt.....................................           96,145            53,630          115,913           76,665
Interest on interest bearing deposits with
other banks....................................           28,925            24,581           47,297           48,373
Interest on other receivables from financial
intermediation.................................           96,737            32,105           39,324           43,503
Interest on securities and foreign exchange
purchased under agreements to resell...........           22,170            35,755           45,855           24,829
Government securities and other trading gains,
net............................................           29,802             8,612           33,841           47,998
                                                -----------------  ---------------------------------  ---------------
Total interest income..........................        1,731,842           809,683        1,484,555        1,280,555
                                                -----------------  ---------------- ----------------  ---------------
Interest expense
Interest on deposits...........................          671,442           274,096          483,011          376,681
Interest on securities sold under agreements
to repurchase..................................           35,905            28,248           50,227           58,315
Interest on short-term liabilities from
financial intermediation.......................           81,473            37,106           57,253           74,613
Interest on long-term liabilities from
financial intermediation.......................          130,357            83,217          153,393          130,192
                                                -----------------  ---------------- ----------------  ---------------
Total interest expense.........................          919,177           422,667          743,884          639,801
                                                -----------------  ---------------- ----------------  ---------------
Net interest income............................          812,665           387,016          740,671          640,754
                                                -----------------  ---------------- ----------------  ---------------
Allowance for loan losses......................          425,973           107,787          226,497          205,535
                                                -----------------  ---------------- ----------------  ---------------
Net interest income after provision for loan
losses.........................................          386,692           279,229          514,174          435,219
                                                -----------------  ---------------- ----------------  ---------------

</TABLE>


                                      F-54



<PAGE>

                 Grupo Financiero Galicia S.A. and Subsidiaries

                 Notes to the Consolidated Financial Statements
    For the year ended December 31, 2001, for the six-month transition period
  ended December 31, 2000 and for the fiscal years ended June 30, 2000 and 1999
          (Expressed in thousands of Argentine pesos, except as noted)


<TABLE>
<CAPTION>
                                                           Grupo Galicia                      Banco Galicia
                                              -----------------------------------------------------------------------
                                                Year ended         Six-month period
                                                December 31,       ended December 31,      Years ended June 30,
                                              ----------------   --------------------- ------------------------------
                                                   2001                  2000              2000            1999
                                              ----------------   --------------------- --------------  --------------
<S>                                           <C>                <C>                   <C>             <C>
Non-interest income:
Service charges on deposit accounts.......... Ps.      82,733    Ps.           40,477  Ps.    78,184   Ps.    71,230
Credit card service charges and fees.........         136,211                  66,274        127,015         139,110
Other commissions............................         281,895                 115,121        198,827         150,840
Income from equity in other companies........          15,865                       -              -          18,478
Income from sale of the Consolidar Group.....               -                       -              -         110,447
Premiums and commissions on insurance
business.....................................          77,623                       -              -               -
Other........................................         122,441                  46,373         87,487          33,648
                                              ----------------   --------------------- --------------  --------------

Total non-interest income.................... Ps.     716,768    Ps.          268,245  Ps.   491,513   Ps.   523,753
                                              ----------------   --------------------- --------------  --------------

Non-interest expense:
Commissions..................................          78,122                  34,322         64,418          68,644
Salaries and social security charges.........         271,099                 134,551        255,640         248,252
Fees and external administrative services....          59,886                  32,694         77,915          72,658
Depreciation of bank premises and equipment..          27,983                  12,597         24,993          20,998
Personnel services...........................          24,778                  12,782         23,729          26,102
Rentals......................................          28,364                  13,270         25,280          22,836
Electricity and communications...............          31,808                  16,529         35,110          34,418
Advertising and publicity....................          24,748                  15,108         27,630          21,148
Taxes........................................          99,828                  37,801         83,864          75,147
Amortization of organization and development
expenses.....................................          36,634                  15,505         33,690          28,240
Loss from equity in other companies..........               -                   4,447          5,481               -
Maintenance and repair expenses..............          20,531                   9,723         19,922          17,992
Minority interest............................          10,056                   6,308          (298)          10,962
Commissions and expenses on insurance
business.....................................          67,282                       -              -               -
Other........................................         130,102                  59,554         97,763          88,523
                                              ----------------   --------------------- --------------  --------------
Total non-interest expense................... Ps.     911,221    Ps.          405,191  Ps.   775,137   Ps.   735,920
                                              ----------------   --------------------- --------------  --------------
Income before tax expense....................         192,239                 142,283        230,550         223,052
Income tax expense...........................        (72,182)                (52,373)       (74,226)        (72,455)
                                              ----------------   --------------------- --------------  --------------
Net income................................... Ps.     120,057    Ps.           89,910  Ps.   156,324   Ps.   150,597
                                              ================   ===================== ==============  ==============
</TABLE>

Certain  categories  of  income  and  expense  maintained  by the Bank have been
presented in the Article 9 income  statement in a manner which warrants  further
discussion as follows:

- Income from trading activities, net: until late 2001, the Bank actively traded
its government  securities  portfolio and does not distinguish in its accounting
records  between  interest and realized and unrealized  gains and losses on such
securities. This caption is included as a component of interest income.

- Provision for loan losses:  this balance  includes direct charge offs plus the
allowance for losses on loans and other receivable  charged to the allowance for
loan losses, less loan loss allowances reversed and bad debts recovered.

- Available  for sale  securities:  as  detailed  in Note 39 to these  financial
statements  the Bank's  available-for-sale  portfolio  would be  classified as a
trading  portfolio  under U.S.  GAAP.  For the  purposes of the Article 9 income
statement,  the interest  income derived from the  available-for-sale  portfolio
under  Argentine  Banking  GAAP has been  reclassified  as income  from  trading
activities.



                                      F-55


<PAGE>

                 Grupo Financiero Galicia S.A. and Subsidiaries

                 Notes to the Consolidated Financial Statements
    For the year ended December 31, 2001, for the six-month transition period
  ended December 31, 2000 and for the fiscal years ended June 30, 2000 and 1999
          (Expressed in thousands of Argentine pesos, except as noted)


Argentine Central Bank rules also require certain  classifications of assets and
liabilities  which are different from those required by Article 9. The following
balance sheet  presents Grupo  Galicia's  balance sheet at December 31, 2001 and
2000 and the  Bank's  balance  sheet at June  30,  2000 as if they had  followed
Article 9 balance sheet disclosure requirements.

<TABLE>
<CAPTION>

                                                                     Grupo Galicia                  Banco Galicia
                                                       ------------------------------------------ -------------------
                                                                     December 31,                      June 30,
                                                       ------------------------------------------ -------------------
                                                               2001                  2000                  2000
                                                       ---------------------  ------------------- -------------------
<S>                                                    <C>                    <C>                 <C>
Assets:
   Cash and due from banks..........................   Ps.        347,202     Ps.      415,746    Ps.        315,242
   Interest-bearing deposits in other banks.........              341,905              569,083               801,554
   Federal funds sold and securities purchased
   under resale agreements or similar arrangements..                    -            3,008,644             2,296,197
   Trading account assets...........................               64,432              103,818               389,519
   Available for sale securities (1)................            1,348,702            2,117,133             1,778,648
   Loans............................................            9,631,488            8,666,319             8,808,102
   Allowances for loan losses.......................            (476,651)            (270,495)             (261,799)
   Fixed assets.....................................              283,324              263,855               260,064
   Other assets.....................................            1,111,325            1,867,034             1,694,215
                                                       ---------------------  ------------------- -------------------
        Total assets................................   Ps.     12,651,727     Ps.   16,741,137    Ps.     16,081,742
                                                       =====================  =================== ===================

Liabilities and Shareholders' Equity:
   Deposits.........................................   Ps.      6,068,145     Ps.    8,821,362    Ps.      8,664,777
   Short-term borrowing.............................              720,285            1,185,726             1,124,011
   Other liabilities................................            1,500,430            3,899,644             3,548,967
   Long-term debt...................................            2,802,095            1,388,651             1,372,976
   Commitments and contingent liabilities...........               34,637               16,069                14,866
   Minority interest in Consolidated Subsidiaries...              117,639              108,856                23,996
   Common stock.....................................            1,092,407            1,092,407               468,662
   Other shareholders' equity.......................              316,089              228,422               863,487
                                                       ---------------------  ------------------- -------------------
        Total liabilities and shareholders' equity..   Ps.     12,651,727     Ps.   16,741,137    Ps.     16,081,742
                                                       =====================  =================== ===================


(1) Contains Ps.953,626 of securities sold under repo agreements as of December 31, 2000.

</TABLE>

Investment securities and investment securities sold under repurchase agreements
(repos) under Argentine Banking GAAP have been recategorized for the purposes of
the Article 9 presentation, as available-for-sale securities.


                                      F-56


<PAGE>

                 Grupo Financiero Galicia S.A. and Subsidiaries

                 Notes to the Consolidated Financial Statements
    For the year ended December 31, 2001, for the six-month transition period
  ended December 31, 2000 and for the fiscal years ended June 30, 2000 and 1999
          (Expressed in thousands of Argentine pesos, except as noted)


The carrying value and market value of each classification of available-for-sale
securities in the Article 9 balance sheet, are as follows.

<TABLE>
<CAPTION>

                                                                      Grupo Galicia
                                  ---------------------------------------------------------------------------------------
                                             December 31, 2001                         December 31, 2000
                                  ---------------------------------------------------------------------------------------
                                                   Gross                                          Gross
                                    Carrying     Unrealized                                     Unrealized      Market
                                     value         Losses      Market value    Carrying value     Losses        value
                                  ------------- ------------- --------------- ---------------- ------------ -------------
<S>                               <C>           <C>           <C>             <C>              <C>          <C>
National Government
Bonds............................ Ps.  279,277            -   Ps.   279,277                -             -              -
Argentine External
Bills............................      283,577            -         283,577                -             -              -
Fiscal Credit
Certificate......................       53,006            -          53,006                -             -              -
Argentine global external bonds
maturing 2015....................            -            -               -                -             -              -
Medium Term Treasury Bonds
maturing 2002....................            -            -               -    Ps.    91,823   Ps.  (3,453) Ps.    88,370
Medium Term Treasury Bonds
maturing 2003....................            -            -               -          395,214       (23,523)       371,691
Medium Term Treasury Bonds
maturing 2004....................            -            -               -          291,101       (22,254)       268,847
Medium Term Treasury Bonds
maturing 2005....................            -            -               -          180,070        (8,951)       171,119
Structured Notes.................            -            -               -          449,499       (57,447)       392,052
                                  ------------- ------------- --------------- ---------------- ------------ -------------
    Total available for
    sale securities..............      615,860            -         615,860        1,407,707      (115,628)     1,292,079
GalTrust I.......................      296,050            -   (1)    41,617          448,082       (15,209)       432,873
GalTrust II, III, IV and V.......      233,544   Ps.(26,111)        207,433                -             -              -
Other securities.................      203,248            -         203,248          261,344             -        261,344
                                  ------------- ------------- --------------- ---------------- ------------ -------------
    TOTAL........................ Ps.1,348,702  Ps. (26,111)  Ps. 1,068,158    Ps. 2,117,133   Ps.(130,837) Ps. 1,986,296
                                  ============= ============= =============== ================ ============ =============


<CAPTION>

                                                Banco Galicia
                                  ------------------------------------------
                                                June 30, 2000
                                  ------------------------------------------
                                                   Gross
                                     Carrying    Unrealized
                                      value        Losses     Market value
                                  ------------- ------------ ---------------
<S>                               <C>           <C>          <C>

National Government
Bonds............................            -            -               -
Argentine External
Bills............................            -            -               -
Fiscal Credit
Certificate......................            -            -               -
Argentine global external bonds
maturing 2015....................       64,553  Ps.  (1,577) Ps.     62,976
Medium Term Treasury Bonds
maturing 2002....................  Ps.  91,823       (3,993)         87,830
Medium Term Treasury Bonds
maturing 2003....................      395,214      (22,967)        372,247
Medium Term Treasury Bonds
maturing 2004....................      291,101      (20,043)        271,058
Medium Term Treasury Bonds
maturing 2005....................      180,070       (9,469)        170,601
Structured Notes.................      459,004      (60,136)        398,868
                                  ------------- ------------ ---------------
    Total available for
    sale securities..............    1,481,765     (118,185)      1,363,580
GalTrust I.......................            -            -               -
GalTrust II, III, IV and V.......            -            -               -
Other securities.................      296,883            -         296,883
                                  ------------- ------------ ---------------
    TOTAL........................ Ps.1,778,648  Ps.(118,185)  Ps. 1,660,463
                                  ============= ============ ===============
</TABLE>

(1)  For U.S. GAAP purposes,  the unrealized loss of Ps.254,433 is considered to
     be other than temporary (see note 39 j.)


The   maturities   at   December   31,   2001  of  the   government   securities
available-for-sale  and the GalTrust I, II, III, IV and V securities included in
the Article 9 balance sheet are as follows:

<TABLE>
<CAPTION>
                                                                  Grupo Galicia
                                   ----------------------------------------------------------------------------
                                                                December 31, 2001
                                   ----------------------------------------------------------------------------
                                                                                    Maturing
                                                                    Maturing         after
                                                    Maturing      after 1 year    5 years but      Maturing
                                     Carrying        within       but within 5     within 10         after
                                       Value         1 year           years          years         10 years
                                   --------------  ------------   -------------- -------------  --------------
<S>                                <C>             <C>            <C>            <C>            <C>
National Government
Bonds............................  Ps.   279,277   Ps. 279,277               -              -               -
Argentine External Bills.........        283,577             -    Ps.  283,577              -               -
Fiscal Credit
Certificate......................         53,006             -          53,006              -               -
                                   --------------  ------------   -------------- -------------  -------------
  Total available for sale
  securities.....................        615,860   Ps. 279,277    Ps.  336,583              -               -
                                                   ============   =============  ============== =============
GalTrust I.......................        296,050        34,595          92,535   Ps.  100,348   Ps.    68,572
GalTrust II, III, IV and V.......        233,544        23,757          95,031         76,745          38,011
Other securities.................        203,248
                                   --------------
  TOTAL..........................  Ps. 1,348,702
                                   ==============


</TABLE>


                                      F-57

<PAGE>


                 Grupo Financiero Galicia S.A. and Subsidiaries

                 Notes to the Consolidated Financial Statements
   For the fiscal year ended December 31, 2001, for the six-month transition
     period ended December 31, 2000 and for the fiscal years ended June 30,
   2000 and 1999 (Expressed in thousands of Argentine pesos, except as noted)


28.  Operations by Geographical Segment

The  main  financial  information,  classified  by  country  where  transactions
originate,  is shown below. Most of the transactions  originated in the Republic
of Uruguay were with Argentine citizens and enterprises, and were denominated in
U.S. dollars.  Transactions  between different  geographical  segments have been
eliminated for the purposes of this note.

<TABLE>
<CAPTION>
                                                      Grupo Galicia                            Banco Galicia
                                           ------------------------------------    --------------------------------------
                                              Year ended      Six-month period
                                             December 31,     ended December 31,            Years ended June 30,
                                           ------------------------------------    --------------------------------------
                                                2001                2000                 2000                1999
                                           -----------------  -----------------    -----------------  -------------------
<S>                                        <C>                <C>                  <C>                <C>
Total revenues:(*)
   Republic of Argentina.................  Ps.    2,323,516   Ps.    1,027,527     Ps.    1,877,596   Ps.      1,733,573
   Republic of Uruguay...................            96,929             36,677               70,888               57,204
   U.S.A. ...............................            62,918             31,793               50,677               50,114
   Grand Cayman Island...................               388                  1                    1                    9
   United Kingdom........................                83                 23                   40                   34
Net income (loss), net of monetary
effects allocable to each country:
   Republic of Argentina.................           132,894            106,566              169,549              181,035
   Republic of Uruguay...................          (16,241)           (10,710)             (14,492)             (27,128)
   U.S.A.................................            25,837              9,517               18,355               10,111
   Grand Cayman Island...................          (21,607)           (15,007)             (16,081)             (12,415)
   United Kingdom........................             (826)              (456)              (1,007)              (1,006)
Total assets:
   Republic of Argentina.................        10,842,710         15,445,658           14,916,736           12,589,778
   Republic of Uruguay...................         1,304,877            696,661              619,245              623,684
   U.S.A.................................           502,179            597,618              544,697              506,376
   Grand Cayman Island...................               340                 67                   40                   22
   United Kingdom........................             1,621              1,133                1,024                  958
Fixed assets
   Republic of Argentina.................           277,575            257,700              254,120              232,943
   Republic of Uruguay...................             5,427              5,771                5,578                5,608
   U.S.A.................................               281                308                  261                  245
   Grand Cayman Island...................                 -                  -                    -                    -
   United Kingdom........................                41                 76                  105                  168
Miscellaneous assets
   Republic of Argentina.................           105,142             81,593               73,866               49,566
   Republic of Uruguay...................               737                 43                   45                   11
   U.S.A.................................                 -                  -                    -                    -
   Grand Cayman Island...................                 -                  -                    -                    -
   United Kingdom........................                 -                  -                    -                    -
Goodwill
   Republic of Argentina.................           124,303             81,803               66,563               66,795
   Republic of Uruguay...................             2,152              2,438                2,583                    -
   U.S.A.................................                 -                  -                    -                    -
   Grand Cayman Island...................                 -                  -                    -                    -
   United Kingdom........................                 -                  -                    -                    -
Other intangible assets
   Republic of Argentina.................            98,622             84,407               78,706               67,638
   Republic of Uruguay...................               207                336                   51                   72
   U.S.A.................................               516                448                  206                  258
   Grand Cayman Island...................                 2                  6                    8                   11
   United Kingdom........................                 -                  -                    -                    -
Geographical segment assets as a
percentage of total assets
   Republic of Argentina.................            85.70%             92.26%               92.75%               91.76%

   Republic of Uruguay...................             10.31               4.16                 3.85                 4.54

   U.S.A.................................              3.97               3.57                 3.39                 3.69

   Grand Cayman Island/United Kingdom....              0.02               0.01                 0.01                 0.01


</TABLE>

(*)  The caption Revenues includes  financial  income,  income from services and
     miscellaneous income.



                                      F-58


<PAGE>

                 Grupo Financiero Galicia S.A. and Subsidiaries

                 Notes to the Consolidated Financial Statements
   For the fiscal year ended December 31, 2001, for the six-month transition
     period ended December 31, 2000 and for the fiscal years ended June 30,
   2000 and 1999 (Expressed in thousands of Argentine pesos, except as noted)


29.  Financial Instruments with Off-Balance Sheet Risk

In the  normal  course  of its  business,  the  Bank  was a party  to  financial
instruments with off-balance sheet risk, in order to meet the financing needs of
its customers.  These instruments expose the Bank to credit risk, in addition to
amounts  recognized  in  the  consolidated   balance  sheets.   These  financial
instruments  include  commitments to extend credit,  standby  letters of credit,
guarantees granted and acceptances.  Guarantees granted are surety guarantees in
connection with transactions between two parties.

The Bank  uses the same  credit  policies  in  making  commitments,  conditional
obligations  and  guarantees  as it does for granting  loans.  In the opinion of
Management,  the Bank's outstanding  commitments and guarantees do not represent
unusual credit risk.

The Bank's exposure to credit loss in the event of  non-performance by the other
party to the financial  instrument,  for  commitments to extend credit,  standby
letters of credit,  guarantees  granted and  acceptances  is  represented by the
contractual notional amount of those investments.

A summary of the credit exposure related to these items is shown below:

<TABLE>
<CAPTION>
                                                            Grupo Galicia                   Banco Galicia
                                                --------------------------------------  -------------------
                                                            December 31,                     June 30,
                                                --------------------------------------  -------------------
                                                       2001                2000                2000
                                                -------------------  -----------------  -------------------
<S>                                             <C>                  <C>                <C>
Commitments to extend credit.................   Ps.       253,758    Ps.      359,011   Ps.        584,882
Standby letters of credit....................              24,851              83,181               95,158
Guarantees granted...........................             340,827             387,022              354,857
Acceptances..................................              70,193              63,357               63,042

</TABLE>

Commitments  to extend  credit are  agreements to lend to a customer at a future
date,  subject to the meeting of the contractual  terms.  Commitments  generally
have fixed expiration dates or other termination clauses and may require payment
of a fee.  Since many of the  commitments  are expected to expire  without being
drawn upon, total commitment amounts do not necessarily  represent actual future
cash   requirements   of  the  Bank.   The  Bank   evaluates   each   customer's
creditworthiness  on a case-by-case  basis. In addition to the above commitment,
at December 31, 2001, 2000 and June 30, 2000, the available  purchase limits for
credit card holders  amounted to Ps.2,475,223,  Ps.1,873,904  and  Ps.1,486,042,
respectively.

Standby  letters of credit and guarantees  granted are  conditional  commitments
issued by the Bank to guarantee the performance of a customer to a third party.

Acceptances are conditional commitments for foreign trade transactions.

The credit risk involved in issuing letters of credit and granting guarantees is
essentially the same as that involved in extending loan facilities to customers.
In order to grant  guarantees  to its  customers,  the Bank may require  counter
guarantees.  These financial  customer  guarantees are  classified,  by type, as
follows:

<TABLE>
<CAPTION>

                                                            Grupo Galicia                   Banco Galicia
                                                --------------------------------------  -------------------
                                                            December 31,                     June 30,
                                                --------------------------------------  -------------------
                                                       2001                2000                2000
                                                -------------------  -----------------  -------------------
<S>                                             <C>                  <C>                <C>
Preferred counter guarantees.................   Ps.   122,991        Ps.     146,853    Ps.      180,271
Other counter guarantees.....................          29,275                 37,037              33,378


</TABLE>



                                      F-59

<PAGE>


                 Grupo Financiero Galicia S.A. and Subsidiaries

                 Notes to the Consolidated Financial Statements
   For the fiscal year ended December 31, 2001, for the six-month transition
     period ended December 31, 2000 and for the fiscal years ended June 30,
   2000 and 1999 (Expressed in thousands of Argentine pesos, except as noted)


The Bank accounts for checks drawn on it and other banks, as well as other items
in process of  collection,  such as notes,  bills and  miscellaneous  items,  in
memorandum  accounts  until such time as the related item clears or is accepted.
In management's  opinion, the risk of loss on these clearing transactions is not
significant. The amounts of clearing items in process were as follows:

<TABLE>
<CAPTION>

                                                              Grupo Galicia                   Banco Galicia
                                                   ------------------------------------   -----------------------
                                                               December 31,                       June 30,
                                                   ------------------------------------   -----------------------
                                                         2001               2000                    2000
                                                   ---------------- -------------------   -----------------------
<S>                                                <C>               <C>                  <C>

Checks drawn on the Bank.........................  Ps.   386,709    Ps.    100,745         Ps.           122,525
Checks drawn on the other Bank...................        479,891           175,374                       210,862
Bills and other items for collection.............        299,597           534,235                       534,137


</TABLE>


As  regards  the  fiduciary  risk,  during the  fiscal  year 2000,  the Bank was
appointed as trustee under four trust  agreements to guarantee  compliance  with
the  obligations  arising  from  different  contracts  between the  parties.  At
December  31,  2001,  2000  and June 30,  2000,  the  trust  funds  amounted  to
Ps.25,267, Ps.66,671 and Ps.136,627, respectively.

In addition, the Bank has securities in custody,  mainly related to its activity
as mutual fund depositary  institution.  At December 31, 2001, 2000 and June 30,
2000, these securities amounted to Ps.1,953,515,  Ps.4,839,961 and Ps.4,237,217,
respectively.


30.  Derivative Financial Instruments

The Bank uses a variety of derivative financial  instruments,  including forward
contracts,  options  and  interest  rate  futures  as part of its  overall  risk
management  strategy  and  for  trading  purposes.  To  the  extent  that  these
instruments  create any  interest  rate,  foreign  currency  or other  financial
mismatch  between the Bank's assets and  liabilities,  the derivative  financial
instruments increases the market risk to which the Bank is exposed.

In addition  the Bank is exposed to credit risk on these  instruments.  The Bank
would have credit losses in the event of non-performance by the  counter-parties
that  issued the  financial  instruments.  The  credit  exposure  of  derivative
contracts is represented by the sum of the positive fair value of the individual
contracts at the reporting date.

In order to reduce  its  counter-party  credit  risk the Bank  performs a credit
analysis  of  each  counter-party  and  does  not  exceed  the  exposure  limits
established by the Board of Directors.

The  following  was the  notional  and  fair  values  of the  Bank's  derivative
activities at December 31, 2001 and 2000.

<TABLE>
<CAPTION>
                       ----------------------------------------------------------------------------------------------------------
                                                                                                      Fair Values
                                  Notional                       Book                      ---------------------------------------
                                  Amounts                        Value                  Asset                    Liability
                       ----------------------------     ----------------------- -------------------------  -----------------------
                           2001            2000            2001         2000        2001          2000        2001        2000
                       ------------   -------------     ----------   ----------  -----------  -----------  ----------  -----------
<S>                    <C>            <C>               <C>          <C>          <C>         <C>          <C>         <C>
Interest rate
futures contract...... Ps.        -   Ps.   200,000              -       1,555             -        1,555           -           -
                                                                                                                    -           -
Forward currency
exchange contracts:
Purchases............. Ps.      343   Ps.    90,105     Ps.      1   Ps.   920   Ps.       -            -  Ps.      1  Ps.  1,010
Sales.................      169,758       1,023,852          6,406      19,818         6,835  Ps.  27,987           -           -
                                                                                 -----------  -----------  ----------- -----------
                                                                                 Ps.   6,835  Ps.  29,542  Ps.      1  Ps.  1,010
                                                                                 ===========  ===========  =========== ===========

</TABLE>

                                      F-60


<PAGE>

                 Grupo Financiero Galicia S.A. and Subsidiaries

                 Notes to the Consolidated Financial Statements
   For the fiscal year ended December 31, 2001, for the six-month transition
     period ended December 31, 2000 and for the fiscal years ended June 30,
   2000 and 1999 (Expressed in thousands of Argentine pesos, except as noted)


The  following  was the  notional  and  fair  values  of the  Bank's  derivative
activities at June 30, 2000.

<TABLE>
<CAPTION>


                                                                   Banco Galicia          Fair Values
                                                   Notional           Book          ----------------------------------
                                                   Amounts            Values             Asset           Liability
                                              ----------------   ----------------   ---------------  -----------------
<S>                                           <C>                <C>                <C>              <C>

Interest rate futures contract............... Ps.     200,000    Ps.        2,129            2,129                  -
                                                                                                                    -

Forward currency exchange contracts:
Purchases.................................... Ps.      49,619    Ps.        1,496   Ps.          -   Ps.        2,852
Sales........................................         959,068              32,440           51,641                  -
                                                                                    ---------------- ----------------
                                                                                    Ps.     51,641   Ps.        2,852
                                                                                    ================ ================

</TABLE>

At December 31, 2001 and 2000,  June 30, 2000 and 1999,  the options  bought and
sold were recorded at their exercise price in memorandum accounts.  The premiums
collected  and/or paid have been accrued on a straight-line  basis over the life
of the contract.

<TABLE>
<CAPTION>
                                               Grupo Galicia                                       Banco Galicia
                     -------------------------------------------------------------------  --------------------------------
                                                                                             Memorandum      Fair Value
                             Memorandum Accounts                   Fair Value                Accounts
                     ---------------------------------   -------------------------------  --------------------------------
                         December       December 31,         December      December                 June 30, 2000
                         31, 2001           2000             31, 2001      31, 2000
                     ----------------  --------------     -------------  ---------------  --------------------------------
<S>                   <C>               <C>               <C>             <C>              <C>               <C>
Option contracts:
Written call options  Ps.     3,527          12,281       Ps.    3,527    Ps.   12,281     Ps.         -      Ps.       -
Purchased call
options                         743          12,281                743          12,281                 -                -

</TABLE>

At December 31, 2000 the Bank  recorded a written  call option  related with the
sale of Inversora en Distribucion Entre Rios S.A.


31.  Disclosure about Fair Value of Financial Instruments

Financial Accounting Standards No. 107 ("SFAS") "Disclosures about Fair Value of
Financial  Instruments"  requires  disclosures  of  estimates  of fair  value of
financial instruments. These estimates were made at the end of December 2001 and
2000, at the end of June 2000. Because many of the Bank's financial  instruments
do not have a ready  trading  market from which to  determine  fair  value,  the
disclosures are based upon significant  estimates regarding economic and current
market  conditions and risk  characteristics.  Such estimates are subjective and
involve  matters of  judgment  and,  therefore,  are not  precise and may not be
reasonably comparable to estimates of fair value for similar instruments made by
other financial institutions.

The estimated fair values do not include the value of assets and liabilities not
considered financial instruments.  Additionally,  values attributable to deposit
relationships (core deposit intangibles) and consumers (credit card intangibles)
are not reflected.

In order to  determine  the fair  value,  cash  flows were  discounted  for each
category or group of loans having similar characteristics, based on credit risk,
guarantees and/or maturities,  using rates offered for similar loans by the Bank
at December 31, 2001 and 2000, and June 30, 2000, respectively.

It should be noted, however, that subsequently to December 31, 2001, the current
economic  policy (the repeal of the  Convertibility  Law, the devaluation of the
peso, the compulsory  "asymmetric  pesification" of bank assets and liabilities,
the  restructuring  of deposits,  the default on the public debt, among the most
significant)



                                      F-61

<PAGE>


                 Grupo Financiero Galicia S.A. and Subsidiaries

                 Notes to the Consolidated Financial Statements
   For the fiscal year ended December 31, 2001, for the six-month transition
     period ended December 31, 2000 and for the fiscal years ended June 30,
   2000 and 1999 (Expressed in thousands of Argentine pesos, except as noted)


and the  inconsistency  of its  implementation  have led to:


-    the abandonment of the monetary and foreign  exchange system which had been
     in force  for the last 10 years,  including  a  devaluation  of the peso of
     approximately 75%,

-    the  compulsory  modification  by the  govemment  of most of the  contracts
     outstanding  between economic agents,  which,  among others, has completely
     modified the currency  denomination  of bank assets and  liabilities  as of
     December  31,  2001,  and  the  terms  and  conditions  of its  assets  and
     liabilities outstanding as of December 31, 2001,

-    the radical  change of the regulatory  framework for the financial  system,
     with the policy implementation measures necessary to complete the design of
     such regulatory  framework  (including the regulations that would establish
     the exact  amount  of the  compensation  to be  received  by  banks)  still
     pending,

-    the  disruption  of  macroeconomic   equilibrium  (already  jeopardized  by
     year-end 2001),  given the magnitude of the  devaluation,  the pressures on
     the price system and the  uncertainty  arising from the devaluation and the
     fact that the Argentine Central Bank was allowed to print currency,

-    the  virtual  paralysis  of  economic  activity,   which  has  impacted  on
     borrowers' ability to repay loans,

-    an  unprecedented   level  of  uncertainty  which  has  prevented  us  from
     reasonably quantify under Argentine Banking GAAP, Argentine GAAP, U.S. GAAP
     or any  other  basis  the  impact of the  current  Argentine  crisis on the
     Group's  or the  Bank's  total  assets and  liabilities  (and its  relevant
     components), shareholders' equity and net income (and its components) as of
     and for the  year  ended  December  31,  2001,  or any  period  thereafter.
     Although uncertain, such impact could be material and adverse,

Due to the uncertainties  derived from the economic crisis existing in Argentina
at the end of 2001 and the economic  policy  measures taken by the Government to
confront  this  crisis,   the  future  actual  results  could  differ  from  the
evaluations  and  estimates  made  at  the  date  of  the  preparation  of  this
quantitative analysis and these differences could be significant. Therefore, the
following  fair values  estimated  under FAS 107 must be  considered in light of
these circumstances.

<TABLE>
<CAPTION>

                                                                Grupo Galicia                               Banco Galicia
                                         ------------------------------------------------------------  -------------------------
                                                                December 31,                                   June 30,
                                         ------------------------------------------------------------  -------------------------
                                                      2001                             2000                      2000
                                         ------------------------------  ---------------------------  -------------------------
                                          Book Value      Fair Value       Book Value     Fair Value    Book Value    Fair Value
                                         -------------  ---------------  -------------  ------------  ------------  ------------
<S>                                      <C>             <C>              <C>            <C>           <C>           <C>

  Derivative activities: (see Note 30)
Assets.................................. Ps.     6,406   Ps.     6,835   Ps.    19,818  Ps.   27,987  Ps.   32,440   Ps.   51,641
Liabilities.............................             1               1             920         1,010         1,496          2,852

         Non derivative activities:
Assets:
Cash and due from banks (1)............. Ps.   517,301   Ps.   517,301   Ps.   620,070       620,070       625,416        625,416
Government securities (2)                      124,015         124,015
   Trading..............................       124,015         124,015          72,662        72,662       312,432        312,432
   Investment...........................             -               -           4,581         4,298        98,769         93,734
Loans (3)...............................     9,125,263       6,375,856       9,244,929     9,200,822     9,326,772      9,296,723
Structured notes (4) ...................             -               -         449,499       392,052       459,004        398,868
Others (5)..............................     1,621,769       1,117,311       4,349,160     4,276,073     4,348,426      4,295,412

Liabilities:
Deposits (6)............................ Ps. 6,127,996  Ps.  6,127,209   Ps. 8,903,774  Ps.8,906,577  Ps.8,743,552   Ps.8,749,108
Other liabilities resulting from
financial Intermediation :
Central Bank (7)........................     1,557,056       1,557,056           4,450         4,450         5,945          5,945
Banks and international entities and
Loans from Domestic Financial
Institutions (8)........................       935,528         789,082       1,095,680     1,095,093     1,167,387      1,166,783
Negotiable obligations..................       849,529         546,343       1,234,261     1,226,157     1,255,887      1,251,488
Others (9)..............................     1,268,272       1,224,156       2,759,376     2,756,329     2,342,849      2,339,555
                  The following is a description of the estimating techniques applied:


</TABLE>

                                      F-62


<PAGE>

                 Grupo Financiero Galicia S.A. and Subsidiaries

                 Notes to the Consolidated Financial Statements
   For the fiscal year ended December 31, 2001, for the six-month transition
     period ended December 31, 2000 and for the fiscal years ended June 30,
   2000 and 1999 (Expressed in thousands of Argentine pesos, except as noted)


(1)  Cash and due from  banks:  By  definition,  cash  and due  from  banks  are
     short-term  and do not possess  credit loss risk.  The  carrying  values at
     December 31, 2001 and 2000, and June 30, 2000 are a reasonable  estimate of
     fair value.

(2)  Government securities:  Government securities held for trading purposes and
     government  securities  available  for sale are carried at fair value.  The
     fair value of the Bank's  government  securities  held for investment  have
     been estimated using the quoted market value.

(3)  Loans:  In order to determine  the fair value of loans,  the  portfolio was
     segregated by loan type, repricing  characteristics and credit quality. For
     performing  loans,  contractual  cash  flows of loans  were  discounted  at
     estimated market rates. For non-performing  loans, expected cash flows were
     discounted using an estimated rate considering the time of collection.  The
     value of collateral was considered in the estimation of cash flows.

(4)  Structured notes: the fair value of the structured notes has been estimated
     using the market value of the underlying securities.

(5)  Others:  Includes other  receivables  from  financial  brokerage and equity
     investments  in other  companies.  A majority of the items  included  under
     "Other  Receivables from Financial  Brokerage" are short-term in nature and
     do not  possess  significant  risk  although  the fair value of the forward
     purchases of  government  securities  held for  investment  purposes is the
     quoted  market  value of the  underlying  government  securities.  Are also
     include  under  this  caption  the  Galtrust  I debt  securities  and trust
     certificates and the estimated fair values of this assets are in accordance
     with SFAS 125. Equity investments in companies where significant  influence
     is exercised are not within the scope of SFAS No. 107.  Equity  investments
     in other companies are carried at market value less costs to sell. The book
     value  of  unquoted   equity   securities  is  believed  by  management  to
     approximate fair value.

(6)  Deposits:  The fair value of  deposit  liabilities  on demand  and  savings
     account  deposits  is  similar  to its book  value.  The fair value of term
     deposits was estimated at the expected future cash flows  discounted at the
     estimated market rates at year-end.

(7)  Central  Bank:  Deposits  from the  Argentine  Central Bank are  short-term
     lines.  The book value at  December  31,  2000,  June 30, 2000 and 1999 are
     reasonable  estimate of fair value.  At December  31, 2001  "Central  Bank"
     includes  Argentine  Central Bank's  liquidity  loans which  conditions for
     repayment is still pending.  The book value of these borrowings is believed
     by management to approximate fair value.

(8)  Banks  and  international   entities  and  Loans  from  Domestic  Financial
     Institutions:   Includes  credit  lines  borrowed  under  different  credit
     arrangements from local and foreign entities.  Where a market exists in the
     Bank's debt, the quoted market prices have been taken as a best estimate of
     fair value.  For  obligations  which carry a fixed interest rate and have a
     maturity  of more  than  one  year,  the  estimated  fair  value  has  been
     calculated by discounting the contractual  cash flows of these  liabilities
     at estimated market rates.  For short-term  obligations or obligations that
     carry a variable  interest  rate,  the carrying value of the obligation has
     been assumed to approximate fair value.


(9)  Negotiable  obligations:  The fair value of the negotiable obligations were
     determine based on quoted market prices.



                                      F-63


<PAGE>

                 Grupo Financiero Galicia S.A. and Subsidiaries

                 Notes to the Consolidated Financial Statements
   For the fiscal year ended December 31, 2001, for the six-month transition
     period ended December 31, 2000 and for the fiscal years ended June 30,
   2000 and 1999 (Expressed in thousands of Argentine pesos, except as noted)


(10) Others:  Includes other liabilities  resulting from financial brokerage the
     carrying values of which at December 31, 2000, June 30, 2000 and 1999 are a
     reasonable estimate of fair value. It also includes the New York branch and
     the Banco  Galicia  Uruguay  S.A.  debt  securities  which  fair value were
     determined based upon a discounted cash flow,  applying  estimated  current
     market rates for the remaining terms of the debt securities.


32.  Cash Dividends

On March 15, 2001, the shareholders of Grupo Galicia approved a cash dividend of
Ps.32,390.


33.  Preferred  Liabilities of the former Banco  Almafuerte Coop.  Ltdo.,  Banco
     Mayo Coop. Ltdo., Banco Mendoza S.A. and Banco Merco Bank S.A.

During the years ended June 30, 1999,  2000 and December 31, 2000 and 2001,  the
Bank acquired  certain  interest in a trust  sponsored by SEDESA,  the Argentine
deposit  insurance  authority.  The trust holds the assets of 3 failed Argentine
banks.  The Bank  acquired the  interests in exchange for the  assumption of the
deposit  liabilities  of the  failed  banks.  The Bank's  interest  in the trust
consists of preferred  certificates  A, and  subordinated  certificates C, whose
payments are guaranteed by SEDESA. At December 31, 2001, 2000, June 30, 2000 and
1999,  trust  certificates  were recorded at an amount of Ps.29,568,  Ps.27,426,
Ps.27,697 and Ps.44,355 respectively,  in the consolidated financial statements.
During the fiscal year ended June 30, 2000,  the Bank  collected from SEDESA all
the remaining subordinated certificates C.


34.  Trust Activities

Setting up of the "Galtrust I" Individual Financial Trust

On October 20, 2000 the Bank  securitized  a group of loans that were granted to
the  Argentine  Provinces.  The  taxation  revenues  from  the  local  provinces
collateralize  these loans. The Bank transferred the ownership of the loans to a
trust Galtrust I. In turn the trust issued Class "A" Debt Securities with a face
value of Ps.100,000,  Class "B" Debt  Securities with a face value of Ps.200,000
and Financial Trust Participation Certificates with a face value of Ps.200,000.

Under this global  program,  the Bank  transferred  the trust ownership of loans
amounting  Ps.490.224  granted  to  Argentine  provinces  collateralized  by the
federal tax sharing corresponding to those Provinces and reserve investments for
Ps.7,761,  to the  GalTrust I Financial  Trust in exchange for cash and retained
interest in the trust in the form of Class "A" Debt  Securities,  Class "B" Debt
Securities and Financial Trust Participation Certificates.

As of December 31, 2001,  those  securities are held in the Bank's portfolio for
Ps.296,050.

Setting up of the " Galtrust II, III, IV and V " Individual Financial Trusts

At the  meeting  held on December 6, 2001,  the Board of  Directors  of Banco de
Galicia y Buenos Aires S.A.  approved the creation of the Universal  Program for
the Securitization of Loans for the issue of debt securities and/or certificates
of participation in Galtrust Financial Trusts.  This program was approved by the
National  Securities  Commission  ("the CNV") through its  resolution  No. 13334
dated April 6, 2000, for a face value of



                                      F-64

<PAGE>

                 Grupo Financiero Galicia S.A. and Subsidiaries

                 Notes to the Consolidated Financial Statements
   For the fiscal year ended December 31, 2001, for the six-month transition
     period ended December 31, 2000 and for the fiscal years ended June 30,
   2000 and 1999 (Expressed in thousands of Argentine pesos, except as noted)


up  to  U.S.$1,000,000  thousand  (the  "Program")  and  authorized  the  Bank's
participation as originator, trustor and manager of that program.

The trustee of the trusts is Trust of New York,  National  Association,  through
its permanent representation in Argentina.  Four financial trusts, "Galtrust II,
III,  IV and V - Letras  Hipotecarias",  were set up under  the  above-mentioned
program and Certificates of Participation  and Debt Securities were issued under
those trusts.

On December 2001,  the Bank  transferred  the trust  ownership of mortgage loans
amounting to Ps.238,642 to the Galtrust II, III, IV and V - Letras Hipotecarias.

The Bank subscribed  Certificates of Participation for a face value of Ps.62,643
thousand,  in which it had a 100% interest and the remaining Class A and Class B
Debt  Securities  were  subscribed for by the Bank and Hartford  Seguros de Vida
S.A.

As of December 31, 2001, the Bank held Certificates of Participation and Class A
and Class B Debt Securities in its portfolio for Ps.233,544.


35.  Purchase of Regional Credit Card Issuing Companies

Tarjetas  Regionales S.A. is a holding  company,  which as of December 31, 2001,
was wholly owned by Grupo Financiero Galicia S.A. through its subsidiaries Banco
Galicia Uruguay S.A. and Banco de Galicia y Buenos Aires S.A.

As of December 31, 2001,  the total  goodwill  value for the  acquisition of the
regional-credit-card  companies,  which  includes the goodwill for the companies
previously acquired,  amounted to Ps.69,633 and, net of accumulated amortization
of Ps.17,888, to Ps.51,745.  Under Argentine Banking GAAP this goodwill is being
amortized over ten years.

During  September  1999,  Tarjetas  Regionales S.A. sold to BAPRO Medios de Pago
S.A. 3,400 ordinary shares of Tarjetas del Mar S.A. that  represented the 17% of
this company's  capital stock.  The total price of the  transaction  amounted to
Ps.2,156 and the Bank recorded a gain of Ps.1,337.

During  January  2000,  Tarjetas  Regionales  S.A  purchased  from  Credit  Card
Financing Corp.  182,162 ordinary shares of Tarjetas del Sur S.A to increase its
interest in this  company's  capital stock from 12.5% to 60%. The price paid for
these shares was Ps.7,000.

During  February  2000,  Tarjeta  Naranja S.A purchased  from  Sociedad  Anonima
Importadora y Exportadora  de la Patagonia its interest in Tarjetas del Sur S.A,
which  represents  40% of the  shares in this  company,  increasing  the  Bank's
interest to 92%.The price paid for these shares was Ps.4,800.

On July 4, 2000, Tarjeta Naranja S.A. acquired 3,600,000 shares representing 40%
of the capital stock and voting rights of Tarjeta  Comfiar S.A.,  increasing the
Bank's interest to 92%.

On March 29, 2001, Tarjetas del Sur S.A. l merged into Tarjeta Naranja S.A.

On  December  28,  2001,  the Board of  Directors  of Tarjetas  Regionales  S.A.
accepted  the  contribution  made by its  shareholder  Banco de Galicia y Buenos
Aires S.A. consisting of all credits held in that company by



                                      F-65

<PAGE>

                 Grupo Financiero Galicia S.A. and Subsidiaries

                 Notes to the Consolidated Financial Statements
   For the fiscal year ended December 31, 2001, for the six-month transition
     period ended December 31, 2000 and for the fiscal years ended June 30,
   2000 and 1999 (Expressed in thousands of Argentine pesos, except as noted)


Banco de Galicia y Buenos Aires S.A.  for an amount of Ps.66,534 as  irrevocable
capital contributions on account of future issues of shares.

During the first quarter of fiscal year 2001, Tarjetas Regionales S.A. sold part
of interest (12%) in Tarjetas del Sur S.A. for Ps.1,440.

The  following  table   discloses   supplementary   information   regarding  the
regional-credit-card companies consolidated.

<TABLE>
<CAPTION>
                                        Grupo Galicia          Banco Galicia          Grupo Galicia       Banco Galicia
                                ---------------------------- -------------------------------------------------------------
                                                              Equity interest
                                    Equity interest as at         as at                       Book Value as at
------------------------------------------------------------ -------------------------------------------------------------
                                       December 31,              June 30,             December 31,           June 30,
                                -----------------------------------------------   ----------------------------------------
                                   2001           2000             2000                2001        2000        2000
                                -----------------------------------------------   ----------------------------------------
<S>                                <C>            <C>              <C>              <C>         <C>           <C>
Tarjeta Comfiar S.A                92%            92%              60%            Ps.   9,389       7,259   Ps.     6,914
Tarjetas Cuyanas S.A               60%            60%              60%                  9,576       8,488           8,543
Tarjetas del Mar S.A               50%            50%              50%                  2,720       2,742           1,617
Tarjeta Naranja S.A                80%            80%              80%                 71,866      54,150          49,965
Tarjetas del Sur S.A                -             92%              92%                    -         4,619           2,735
                                                                                  -----------   ----------   -------------
Total                                                                             Ps.  93,551   Ps.77,258          69,774
                                                                                  ===========   ===========  =============
</TABLE>

The  portion of the shares not owned by the Bank is shown in the  balance  sheet
and in the income statement, under the minority interest caption.

The following table shows supplementary unaudited proforma information regarding
the Bank's  results of  operations  as if the  acquisition  had been made at the
beginning of the fical year ended June 30, 1999:

                                    June 30,
                             ----------------------
                                     1999
                             ----------------------
Revenues                     Ps.         1,844,764
Net income                                 152,174
Earning per share                            0.325


36.  Sale of the equity interest in the Consolidar Group

On June 30, 1999 Banco Galicia sold to Banco Bilbao Vizcaya S.A. its interest in
the Consolidar  Group,  which included 31.91% of the capital stock of Consolidar
A.F.J.P.,  33.33% of  Consolidar  Cia.  de Seguros  de Vida S.A.,  and 33.33% of
Consolidar  Cia.  de  Seguros  de  Retiro  S.A.,  for a total  consideration  of
Ps.176,623,  which was paid  after the  closing  date in shares of Banco  Bilbao
Vizcaya  S.A. The profit of this  transaction  amounted to  Ps.110,447,  and was
included in miscellaneous income.

On June, 30 1999,  the Bank  accounted for the total amount of Ps.176,623 in its
balance  sheet  as a  miscellaneous  receivable.  A share  put  option  contract
exercisable  on these  shares was entered  into by Galicia  and was  exercisable
within 90 days.  Also, a share call option contract  exercisable on these shares
was entered into by Banco Bilbao  Vizcaya S.A.,  exercisable  from day 91 to day
100.  Under these  contracts,  Galicia agreed to sell the shares to Banco Bilbao
Vizcaya S.A. and Banco Bilbao Vizcaya S.A.  agreed to purchase the shares,  at a
fixed exercise price.

During the 90 days  after  June 30,  1999,  the share put  option  contract  was
exercised  and the  Bank  sold  all the  shares  in  Banco  Bilbao  Vizcaya  for
Ps.178,253.


                                      F-66

<PAGE>

                 Grupo Financiero Galicia S.A. and Subsidiaries

                 Notes to the Consolidated Financial Statements
   For the fiscal year ended December 31, 2001, for the six-month transition
     period ended December 31, 2000 and for the fiscal years ended June 30,
   2000 and 1999 (Expressed in thousands of Argentine pesos, except as noted)


37.  Segment Reporting

The Bank has disclosed its segment  information in accordance with the Statement
of Financial  Accounting  Standards  No. 131,  "Disclosures  about Segment of an
Enterprise and Related  Information".  This standard  establishes  standards for
reporting  information about operating segments.  Operating segments are defined
as components of an enterprise  about which  separate  financial  information is
available and which is regularly  reviewed by the chief operating decision maker
in deciding how to allocate resources and in assessing  performance.  Reportable
segments  consist  of one or  more  operating  segments  with  similar  economic
characteristics,   distribution   systems  and   regulatory   environment.   The
information  provided for Segment Reporting is based on internal reports used by
management.

The following  summarizes the aggregation of Grupo Galicia's  operating segments
into reportable segments:

Grupo  Galicia:  this segment  includes  the income and expenses  related to the
Holding Company, not attributable to its investments.

Insurance:  includes  the  results of Grupo  Galicia's  equity  interest  in the
insurance companies. At December 31, 2001, Grupo Galicia maintained, through its
subsidiary  Sudamericana  Holding  S.A.,  controlling  interests in Galicia Vida
Compania de Seguros S.A., Galicia Retiro Compania de Seguros S.A.,  Instituto de
Salta Compania de Seguros de Vida S.A., Aseguradora de Personas Galicia S.A. and
Hartford Salud S.A.

Other Group's  Businesses:  this segment includes the results of the business of
Galicia Warrants S.A. and Net Investment S.A. and its subsidiaries.

Buenos Aires  Metropolitan  branches:  corresponds  to the results of operations
conducted  with  large  corporations,   small  and  medium-sized  companies  and
individuals in branches  located in the Federal Capital and Greater Buenos Aires
(where the relatively greater economic activity occurs).

Branches  throughout the rest of the country:  this segment includes the results
of operations  with large  corporations,  small and  medium-sized  companies and
individuals in the branches located in the rest of the country.

Home  office:   includes  the  results  of  operations  with  customers   (large
corporations,  small and medium-sized  companies and individuals) located in it,
as well as the results of  operations  with the national and  provincial  public
sectors.

Regional  credit  card  companies:  includes  the  results of the Bank's  equity
interests in the regional credit card companies.  At December 31, 2001, the Bank
maintained,   through  its  subsidiary  Tarjetas  Regionales  S.A.,  controlling
interests  in Tarjeta  Naranja S.A.  (80%) in the province of Cordoba,  Tarjetas
Cuyanas S.A.  (60%) in the  province of Mendoza,  Tarjeta  Comfiar  (92%) in the
Province  of Santa Fe,  and  Tarjetas  del Mar (50%) in the  Province  of Buenos
Aires.

International: the results of operations conducted through Banco Galicia Uruguay
S.A., Banco de Galicia Cayman Ltd., the New York and Cayman branches, except for
the  operations  carried  out  with  customers  located  in some of the  regions
mentioned above. Furthermore,  it includes the results of Galicia y Buenos Aires
Securities  (UK) Ltd. and the Bank's equity interest in Banco Barclays e Galicia
S.A., based in Sao Paulo, Brazil.

Other  financial  business:  This  segment  mainly  includes  the results of the
business of Galicia  Capital  Markets  S.A.,  Galicia  Valores S.A.  Sociedad de
Bolsa, Agro Galicia S.A. and Galicia Factoring y Leasing S.A.


                                      F-67

<PAGE>


                 Grupo Financiero Galicia S.A. and Subsidiaries

                 Notes to the Consolidated Financial Statements
   For the fiscal year ended December 31, 2001, for the six-month transition
     period ended December 31, 2000 and for the fiscal years ended June 30,
   2000 and 1999 (Expressed in thousands of Argentine pesos, except as noted)


Other equity investments:  Includes the results of the capital expenditures made
by the Bank as  minority  interest  in a variety  of  infrastructure  and public
utility service companies, such as Aguas Argentinas S.A., Correo Argentino S.A.,
Inversora Nihuiles S.A., Inversora Diamante S.A., etc.

Overhead and corporate adjustments:  Includes the results of the operations that
can not be  allocated to the  segments  above and the results of the  operations
conducted between the aforementioned segments.

Transactions between different segments are carried out on an arms-length basis.
The Bank  evaluates  segment  performance  based on net income.  The table below
shows the  segment  information  for  continuing  operations  for the year ended
December 31, 2001, for the six-month  period ended December 31, 2000 and for the
two fiscal years ended June 30, 2000 and 1999:



                                      F-68

<PAGE>

                 Grupo Financiero Galicia S.A. and Subsidiaries

                 Notes to the Consolidated Financial Statements
   For the fiscal year ended December 31, 2001, for the six-month transition
     period ended December 31, 2000 and for the fiscal years ended June 30,
   2000 and 1999 (Expressed in thousands of Argentine pesos, except as noted)


<TABLE>
<CAPTION>

                                                                               Grupo Galicia
                        -----------------------------------------------------------------------------------------------------------
                                                Rest of
Year ended December              Buenos Aires     the                   Regional              Other        Other
31, 2001                 Grupo   Metropolitan   Country       Head       Credit    Interna-  Financial     Equity       Insurance
                        Galicia    Branches     Branches     Office      Cards     tional    Businesses  Investments     Business
                        -------- -------------  --------- ------------ --------- ----------  ----------- ------------  -----------
<S>                     <C>      <C>            <C>       <C>          <C>       <C>        <C>          <C>           <C>
Net Financial Income       534      215,766       136,850      365,990    50,536     67,040     (288)          -          4,798

Net Income from
Services                    (2)     143,406        78,355      42,742    141,309      8,837    19,929          -        (4,652)

Provision for Loan
Losses                        -      96,836        81,152     199,825     68,717     11,165         -          -              -

Operating Income            532     262,336       134,053     208,907    123,128     64,712    19,641          -            146

Operating Expenses        3,388     226,234       154,056      75,931    115,215     34,808    13,466          -          9,297

Other Income (Loss)       (985)      13,385        22,696      10,002       (82)      9,986     2,424    (1,489)          9,281

Minority Interest             -           -             -           -    (1,989)      1,804     (113)          -           (45)

Pre-tax Income          (3,841)      49,487         2,693     142,978      5,842     41,694     8,486    (1,489)             85

Income tax provision          -      20,154         1,097      58,228      9,981        965     1,616          -              -

Net Income              (3,841)      29,333         1,596      84,750    (4,139)     40,729     6,870    (1,489)             85

Net Income as a
percentage of
Consolidated Net
Income                     (3%)         24%            1%         71%       (4%)        34%        6%       (1%)             0%

Average Loans                 -   1,826,426     1,658,950   4,150,957    423,187  1,018,080         -          -              -

Average Deposits              -   3,604,794     2,273,931   2,074,213          -    539,084         -          -              -


<CAPTION>
                                     Overhead
                          Other        and
                          Group's    Corporate    Consolidated
                        Businesses  Adjustments      Total
                        ----------  -----------  --------------
 <S>                    <C>         <C>           <C>

Net Financial Income        140       (178,471)      662,895

Net Income from
Services                  2,096         (4,192)      427,828

Provision for Loan
Losses                        -               -      457,695

Operating Income          2,236       (182,663)      633,028

Operating Expenses        2,770        (13,421)      621,744

Other Income (Loss)       (241)         126,034      191,011

Minority Interest            19         (9,732)     (10,056)

Pre-tax Income            (756)        (52,940)      192,239

Income tax provision        219        (20,078)       72,182

Net Income                (975)        (32,862)      120,057

Net Income as a
percentage of
Consolidated Net
Income                     (1%)           (27%)         100%

Average Loans                 -               -    9,077,600

Average Deposits              -        (44,760)    8,447,262


<CAPTION>

                                                                   Grupo Galicia
                       ------------------------------------------------------------------------------------------------------
Six-month Ended                  Buenos         Rest                                                               Overhead
December 31, 2000                Aires         of the                Regional             Other       Other          and
                        Grupo    Metropolitan  Country      Head      Credit   Interna-  Financial    Equity      Corporate
                       Galicia   Branches      Branches    Office     Cards    tional    Businesses  Investments Adjustments
                       --------  ------------  ---------  ---------  --------  --------  ----------  ----------- ------------
<S>                    <C>       <C>            <C>       <C>       <C>        <C>       <C>         <C>         <C>
Net Financial Income     1,276     117,870        78,620    130,481   32,086     26,914        883           -      (10,680)

Net Income from
Services                     -      65,562        38,151     20,770   56,179      2,643      9,692           -       (1,715)

Provision for Loan
Losses                       -      47,420        40,522      9,663   25,055      1,021          -           -             -

Operating Income         1,276     136,012        76,249    141,588   63,210     28,536     10,575           -      (12,395)

Operating Expenses         913     110,807        79,541     25,495   50,919     12,224      5,891           -        16,098

Other Income (Loss)      (417)       5,824         5,022      9,491  (4,403)    (3,262)        940     (1,848)       (5,919)

Minority Interest            -           -             -          -      123          -        (5)           -       (6,426)

Pre-tax Income            (54)      31,029         1,730    125,584    8,011     13,050      5,619     (1,848)      (40,838)

Income tax provision         -      10,104           563     40,895   10,253        273      1,494           -      (11,209)

Net Income                (54)      20,925         1,167     84,689  (2,242)     12,777      4,125     (1,848)      (29,629)

Net Income as a
percentage of
Consolidated Net
Income                     0%          23%            1%        94%     (2%)        14%         5%        (2)%         (33%)

Average Loans               -    1,850,845     1,776,128  4,098,618  385,388    818,821          -           -             -

Average Deposits            -    3,683,931     2,301,806  2,314,288        -    473,200          -           -      (67,425)


<CAPTION>
                      Consolidated
                         Total
                      ------------
<S>                   <C>
Net Financial Income      377,450

Net Income from
Services                  191,282

Provision for Loan
Losses                    123,681

Operating Income          445,051

Operating Expenses        301,888

Other Income (Loss)         5,428

Minority Interest         (6,308)

Pre-tax Income            142,283

Income tax provision       52,373

Net Income                 89,910

Net Income as a
percentage of
Consolidated Net
Income                       100%

Average Loans           8,929,800

Average Deposits        8,705,800


</TABLE>

                                      F-68


<PAGE>


                 Grupo Financiero Galicia S.A. and Subsidiaries

                 Notes to the Consolidated Financial Statements
   For the fiscal year ended December 31, 2001, for the six-month transition
     period ended December 31, 2000 and for the fiscal years ended June 30,
   2000 and 1999 (Expressed in thousands of Argentine pesos, except as noted)


<TABLE>
<CAPTION>

                                                                Banco Galicia
                       ------------------------------------------------------------------------------------------------------------
                          Buenos      Rest of                                                                 Overhead
                          Aires         the               Regional                   Other        Other         and
                       Metropolitan   Country      Head    Credit                  Financial     Equity      Corporate  Consolidated
                         Branches     Branches     Office   Cards    International Businesses  Investment  Adjustments    Totals
                       ------------  ---------- --------- --------- -------------  ----------- ----------  -----------  -----------
<S>                    <C>            <C>        <C>      <C>       <C>            <C>          <C>         <C>         <C>
Year Ended June 30,
2000

Net Financial Income      209,734     156,885    236,746    86,957     51,828         1,862            -        (21,015)    722,997

Net Income from           130,525      78,556     36,459    74,079      6,334        24,608            -         (8,275)    342,286
Services

Provision for Loan         73,661      69,855     47,778    57,803      3,860             -            -         (3,491)    249,466
Losses

Operating Income          266,598     165,586    225,427   103,233     54,302        26,470            -        (25,799)    815,817

Operating Expenses        211,703     159,166     35,345    85,640     21,156        12,012            -         82,569     607,591

Other Income (Loss)         8,338       9,145     15,157   (3,680)   (12,072)         3,286        2,159          (307)      22,026

Minority Interest               -           -          -       310          -          (12)            -              -         298

Pre-tax Income             63,233      15,565    205,239    14,223     21,074        17,732        2,159      (108,675)     230,550

Income tax provision       19,285       4,747     63,660    15,578        353         4,813            -       (34,210)      74,226

Net Income                 43,948      10,818    141,579   (1,355)     20,721        12,919        2,159       (74,465)     156,324

Net Income as a
percentage of
Consolidated Net
Income                        28%          7%        91%      (1%)        14%            8%           1%      (48%)            100%

Average Loans           1,700,945   1,720,784  3,381,626   325,682   1,154,585            -            -          -       8,283,622

Average Deposits        3,431,912   2,172,086  2,133,626         -     388,134            -            -          -       8,125,758

<CAPTION>

                                                                Banco Galicia
                       ------------------------------------------------------------------------------------------------------------
                          Buenos      Rest of                                                                 Overhead
                          Aires         the               Regional                   Other        Other         and
                       Metropolitan   Country      Head    Credit                  Financial     Equity      Corporate  Consolidated
                         Branches     Branches     Office   Cards    International Businesses  Investment  Adjustments    Totals
                       ------------  ---------- --------- --------- -------------- ----------- ----------  -----------  -----------
<S>                    <C>            <C>        <C>      <C>       <C>            <C>          <C>         <C>         <C>
Year Ended June 30,
1999

Net Financial Income      197,091     149,600    145,934    79,078      23,835        1,043            -   (24,007)         572,574

Net Income from           123,902      78,100     27,325    39,025       7,701       28,186            -   (10,065)         294,174
Services

Allowance for Loan         83,174      73,800     22,431    32,845       3,188            -            -        600         216,038
Losses

Operating Income          237,819     153,900    150,828    85,258      28,348       29,229            -   (34,672)         650,710

Operating Expenses        202,918     154,295     46,942    54,363      17,000       12,858            -     73,469         561,845

Other Income (Loss)         3,337       5,700      6,384   (1,435)     (1,170)      119,993        2,427      9,913         145,149

Minority Interest               -           -          -   (9,620)           -      (1,342)            -          -        (10,962)

Pre-tax Income             38,238       5,305    110,270    19,840      10,178      135,022        2,427   (98,228)         223,052

Income tax provision        6,881         954     19,849    11,555       1,702       47,606            -   (16,092)          72,455

Net Income                 31,357       4,351     90,421     8,285       8,476       87,416        2,427   (82,136)         150,597

Net Income as a
percentage of                 21%          3%        60%        6%          6%          58%           2%      (56)%            100%
Consolidated Net
Income

Average Loans           1,680,162   1,617,728  3,104,339   242,009     873,418            -           -           -       7,517,656

Average Deposits        3,159,016   1,989,000  1,601,588         -     410,767            -           -           -       7,160,371

</TABLE>


38.  Other post December 31, 2001 Transactions (Unaudited)

Tarjetas Regionales S.A.:
-------------------------

On January 15, 2002, the  Extraordinary  meeting of the shareholders of Tarjetas
Regionales S.A. resolved to increase its capital stock to Ps.103,834 through the
issue of 70,734,148 ordinary,  book entry shares with a face value of Ps.1 each,
entitled to one vote per share. Those shares have been fully subscribed and paid
up by the shareholder Banco de Galicia y Buenos Aires S.A. As a result,  the new
interest  percentages  held by the  shareholders in that company are as follows:
Banco de Galicia y Buenos  Aires  S.A.  68.22% of the  capital  stock and voting
rights and Banco de Galicia (Cayman) Ltd., the remaining 31.78%.


                                      F-69

<PAGE>

                 Grupo Financiero Galicia S.A. and Subsidiaries

                 Notes to the Consolidated Financial Statements
   For the fiscal year ended December 31, 2001, for the six-month transition
     period ended December 31, 2000 and for the fiscal years ended June 30,
   2000 and 1999 (Expressed in thousands of Argentine pesos, except as noted)


During May,  2002,  Tarjetas  Regionales  S.A.  purchased  from Grupo BAPRO S.A.
10,000 ordinary shares of Tarjetas del Mar S.A. to increase its interest in this
company's  capital  stock from 50% to 100%.  The price paid for these shares was
Ps.3,097.

Tarjetas del Mar S.A.:
----------------------

On January  2002  Tarjetas  del Mar S.A.  received a Ps.11,200  60-day loan from
Banco de Galicia y Buenos Aires S.A. to be used for  settlement  of its issue of
Series IX Negotiable Obligations.

On March 4, 2002, Tarjetas del Mar S.A. informed the Buenos Aires Stock Exchange
and the  National  Securities  Commission  ("the  CNV") that it had  resolved to
propose to the holders of the Series X Negotiable Obligations for U$S 15,400,000
due March 5, 2002 the postponement of their due date for 120 days,  during which
period interest would be paid monthly in advance at an annual rate of 14.92%. On
June 18, 2002,  Tarjetas del Mar S.A.  informed the Buenos Aires Stock  Exchange
and the CNV that it had  resolved to propose to the holders of these  negotiable
obligations an additional 120-day postponement of their due date.

Tarjeta Comfiar S.A.:
---------------------

On January 2002, Series IX Negotiable  Obligations for U.S.$25,000,000  matured.
Tarjeta Comfiar S.A. settled this amount on maturity as follows:

          - U.S.$22,423,000 were repaid by means of a loan from Banco de Galicia
          y Buenos Aires S.A.'s Grand Cayman Branch.

          -  U.S.$312,000  were paid in cash and an agreement  with investors is
          still pending on the remaining principal of Ps.2,265,000

Tarjeta Naranja S.A.:
---------------------

During January 2002, Tarjeta Naranja S.A. placed the full amount of Series XXVII
Negotiable Obligations for U.S.$28,000,000 for a term of 344 days.

On May 23, 2002, Tarjeta Naranja S.A. signed a Trust Agreement ("the Agreement")
with the holders of these  negotiable  obligations,  pursuant to which a 4.5% of
such company's monthly  cash-flows will be destined,  during eight years, to the
payment of the debt certificate  issued as a consequence of this agreement.  The
series of  negotiable  obligation  included in the Agreement are Series VI, VII,
XXV,  XXVIII  and XXIX  issued by  Tarjeta  Naranja  S.A.  Up to date the amount
included  in the  Trust  is  approximately  U.S.$59,000,000.  There  is  still a
negotiation going on with a group of investors that did not accept the Agreement
yet, for an approximately principal amount of U.S.$9,250,000.

Tarjetas Cuyanas S.A.:
----------------------

During January 2002 Series IX Negotiable  Obligations were repaid. As a result a
liability arose with Banco Galicia for Ps.8,000.

On January 23, 2002, Series XII Negotiable  Obligations for  U$S12,000,000  were
issued,  maturing on April 23, 2002, and Series IX and X Negotiable  Obligations
were repaid.

On May 23, 2002, Tarjetas Cuyanas S.A. signed an agreement ("the Agreement")
with the holders of these negotiable obligations, pursuant to which a 5% of such
company's monthly cash-flows, will be destined,


                                      F-70


<PAGE>

                 Grupo Financiero Galicia S.A. and Subsidiaries

                 Notes to the Consolidated Financial Statements
   For the fiscal year ended December 31, 2001, for the six-month transition
     period ended December 31, 2000 and for the fiscal years ended June 30,
   2000 and 1999 (Expressed in thousands of Argentine pesos, except as noted)


during  eight  years,  to  the  payment  of the  debt  certificate  issued  as a
consequence  of the  Agreement.  Up to date the amount  included in the Trust is
approximately U.S.$5,000,000. There is still a negotiation going on with a group
of investors that did not accept this agreement yet, for an approximately amount
of U.S.S5,600,000 of this series of negotiable obligations. The remaining amount
was paid in cash.


39.  Summary of Significant Differences between Argentine Central Bank Rules and
     United States Accounting Principles

The following is a description of the significant  differences between Argentine
Banking GAAP and those applicable in the United States under generally  accepted
accounting  principles ("U.S.  GAAP").  References below to "SFAS" are to United
States Statements of Financial Accounting Standards.

a.   Income Taxes

Argentine Central Bank regulations  require income taxes to be recognized on the
basis of amounts due in accordance with Argentine tax  regulations.  In addition
at June 30, 2000,  and 1999 the Bank had an additional  reserve of Ps.20,317 and
Ps.34,662 for the future estimated tax payable on disposition of securities held
for  investment  purposes.  At December  31, 2000,  the Group had an  additional
reserve of Ps.20,363

For the  purposes  of U.S.  GAAP  reporting,  the  Group  applies  SFAS No.  109
"Accounting  for Income Taxes".  Under this method,  income taxes are recognized
based on the liability  method whereby  deferred tax assets and  liabilities are
established for temporary  differences  between the financial  reporting and tax
bases of the Bank's assets and  liabilities.  Deferred tax assets are recognized
if it is more likely than not that such assets will be realized.

Deferred tax assets (liabilities) are summarized as follows:



                                      F-71

<PAGE>

                 Grupo Financiero Galicia S.A. and Subsidiaries

                 Notes to the Consolidated Financial Statements
   For the fiscal year ended December 31, 2001, for the six-month transition
     period ended December 31, 2000 and for the fiscal years ended June 30,
   2000 and 1999 (Expressed in thousands of Argentine pesos, except as noted)


<TABLE>
<CAPTION>
                                                                                   Grupo Galicia
                                                               -------------------------------------------------------
                                                                            Year ended December 31, 2001
                                                               -------------------------------------------------------
                                                                  SFAS 109
                                                                 applied to         SFAS 109
                                                               Argentine GAAP    applied to U.S.          SFAS 109
                                                                  balances       GAAP adjustments
                                                               ----------------  -----------------  ------------------
<S>                                                            <C>               <C>                <C>
Deferred tax assets
Allowance for loan losses - private sector..................           46,477            153,370             199,847
Allowance for loan losses - public sector...................                -            979,034             979,034
Amortization of intangible assets...........................            4,209             16,924              21,133
Impairment of intangible assets.............................                -             15,654              15,654
Allowance for equity in other companies.....................                -             10,518              10,518
Foreign exchange loss.......................................                -            271,525             271,525
Liabilities.................................................            6,992                  -               6,992
Provision for contingencies.................................           10,498                  -              10,498
Others......................................................            9,215              (756)               8,459
Loss carry forward..........................................          106,864                  -             106,864
                                                                 --------------- -----------------  ------------------
Total gross deferred tax assets.............................     Ps.  184,255      Ps. 1,446,269    Ps.    1,630,524
Deferred tax liabilities:

Investments.................................................     Ps.  (23,549)     Ps.    26,111    Ps.        2,562
Depreciation of fixed assets................................           (7,353)                 -             (7,353)

                                                                 --------------- -----------------  ------------------
Total gross deferred tax liabilities........................     Ps.  (30,902)     Ps.    26,111    Ps.      (4,791)
                                                                 --------------- -----------------  ------------------
Net deferred income tax asset before valuation allowance....     Ps.   153,353     Ps. 1,472,380    Ps.    1,625,733
Valuation allowance.........................................                 -                 -          (1,625,733)
                                                                 --------------- -----------------  ------------------
Net deferred income tax.....................................     Ps.   153,353     Ps. 1,472,380    Ps.            -
                                                                 --------------- -----------------  ------------------


</TABLE>

                                      F-72


<PAGE>

                 Grupo Financiero Galicia S.A. and Subsidiaries

                 Notes to the Consolidated Financial Statements
    For the fiscal year ended December 31, 2001, for the six-month transition
     period ended December 31, 2000 and for the fiscal years ended June 30,
   2000 and 1999 (Expressed in thousands of Argentine pesos, except as noted)


<TABLE>
<CAPTION>

                                                                                   Grupo Galicia
                                                               -------------------------------------------------------
                                                                      Six-month period ended December 31, 2000
                                                               -------------------------------------------------------
                                                                  SFAS 109
                                                                 applied to         SFAS 109
                                                               Argentine GAAP    applied to U.S.          SFAS 109
                                                                  balances       GAAP adjustments
                                                               ----------------  -----------------  ------------------
<S>                                                            <C>               <C>                <C>
Deferred tax assets
Structured notes...........................................    Ps.           -   Ps.       20,106   Ps.       20,106
Allowance for loan losses..................................             25,563              3,509             29,072
Amortization of intangible assets..........................              2,493             11,682             14,175
Liabilities................................................              2,759                  -              2,759
Provision for contingencies................................              4,995                  -              4,995
Loss carry forward.........................................              9,625                  -              9,625
                                                               ----------------  -----------------  ------------------
Total gross deferred tax assets............................    Ps.      45,435   Ps.       35,297   Ps.       80,732

Deferred tax liabilities
Investments................................................    Ps.    (38,167)   Ps.       27,626   Ps.     (10,541)
Depreciation of fixed assets...............................           (17,180)                  -           (17,180)
Others.....................................................                 81            (3,193)            (3,112)
                                                              ----------------  -----------------  ------------------
Total gross deferred tax liabilities.......................    Ps.    (55,266)   Ps.       24,433   Ps.     (30,833)

                                                              ----------------  -----------------  ------------------
Net deferred income tax (liability) asset..................    Ps.     (9,831)   Ps.       59,730   Ps.       49,899
                                                              ----------------  -----------------  ------------------


<CAPTION>

                                                                                   Banco Galicia
                                                               -------------------------------------------------------
                                                                             Years ended June 30, 2000
                                                               -------------------------------------------------------
                                                                  SFAS 109
                                                                 applied to         SFAS 109
                                                               Argentine GAAP    applied to U.S.          SFAS 109
                                                                  balances       GAAP adjustments
                                                               ----------------  -----------------  ------------------
<S>                                                            <C>               <C>                <C>

Deferred tax assets
Structured notes...........................................                  -   Ps.      21,047    Ps.      21,047
Allowance for loan losses..................................    Ps.      23,147             5,311             28,458
Amortization of intangible assets..........................              1,206            12,069             13,275
Liabilities................................................              3,246                 -              3,246
Provision for contingencies................................              4,312                 -              4,312
Loss carryforward..........................................              7,730                 -              7,730
Others.....................................................                 70             2,901              2,971
                                                               ----------------  -----------------  -----------------
Total gross deferred tax assets............................    Ps.      39,711   Ps.      41,328    Ps.      81,039

Deferred tax liabilities
Investments................................................    Ps.    (36,857)   Ps.      21,359    Ps.    (15,498)
Depreciation of fixed assets...............................           (21,965)                 -           (21,965)
                                                               ----------------  -----------------  -----------------
Total gross deferred tax liabilities.......................    Ps.    (58,822)   Ps.      21,359    Ps.    (37,463)

                                                               ----------------  -----------------  -----------------
Net deferred income tax (liability) asset..................    Ps.    (19,111)   Ps.      62,687    Ps.      43,576
                                                               ----------------  -----------------  -----------------

</TABLE>



                                      F-73


<PAGE>


                 Grupo Financiero Galicia S.A. and Subsidiaries

                 Notes to the Consolidated Financial Statements
    For the fiscal year ended December 31, 2001, for the six-month transition
     period ended December 31, 2000 and for the fiscal years ended June 30,
   2000 and 1999 (Expressed in thousands of Argentine pesos, except as noted)


<TABLE>
<CAPTION>

                                                                                   Banco Galicia
                                                               -------------------------------------------------------
                                                                             Years ended June 30, 1999
                                                               -------------------------------------------------------
                                                                  SFAS 109
                                                                 applied to         SFAS 109
                                                               Argentine GAAP    applied to U.S.          SFAS 109
                                                                  balances       GAAP adjustments
                                                               ----------------  -----------------  ------------------
<S>                                                            <C>               <C>                <C>
Deferred tax assets
Structured notes...........................................    Ps.           -   Ps.       30,376   Ps.       30,376
Allowance for loan losses..................................             23,814             10,955             34,769
Liabilities................................................              1,735                  -              1,735
Provision for contingencies................................              8,694                  -              8,694
Loss carryforward..........................................                802                  -                802
Others.....................................................                 13                509                522
                                                               ----------------  -----------------  ------------------
Total gross deferred tax assets............................             35,058             41,840             76,898

Deferred tax liabilities
Investments................................................           (56,176)             43,824           (12,352)
Depreciation of fixed assets...............................           (20,612)                  -           (20,612)
Amortization of intangible assets..........................            (1,258)             11,419             10,161
                                                               ----------------  -----------------  ------------------
Total gross deferred tax liabilities                                  (78,046)             55,243           (22,803)

                                                               ----------------  -----------------  ------------------
Net deferred income tax asset (liability)..................    Ps.    (42,988)   Ps.       97,083   Ps.       54,095
                                                               ----------------  -----------------  ------------------

</TABLE>

The following table accounts for the difference between the actual tax provision
and the amounts  obtained by applying the statutory income tax rate in Argentina
to Income before  income tax,  calculated on the basis of U.S. GAAP for the year
ended  December 31, 2001,  for the six-month  period ended December 31, 2000 and
for the years ended June 30, 2000 and 1999.

<TABLE>
<CAPTION>
                                                              Grupo Galicia                    Banco Galicia
                                                    -------------------------------------------------------------------
                                                      Fiscal year       Six-months           Fiscal years ended
                                                         ended         period ended               June 30,
                                                      December 31,     December 31,
                                                    -------------------------------------------------------------------
                                                          2001              2000            2000             1999
                                                    -----------------  ---------------- --------------  ---------------
<S>                                                 <C>                <C>              <C>             <C>
Statutory income tax rate........................              35.0%             35.0%          35.0%            35.0%
Tax provision computed by applying the statutory
rate to the income before taxation calculated in
accordance with U.S. GAAP........................   Ps.  (1,338,295)            50,678   Ps.   80,604   Ps.     67,336
Tax exempt income................................          (213,040)           (5,884)       (15,257)         (24,921)
Effect of the change in the rate under which
temporary Differences will reverse...............                                    -              -              904
Reversal of deferred income taxes under U.S. GAAP              4,107                 -              -                -
Reversal of deferred tax set-up under Argentine
GAAP.............................................             20,363                 -              -                -
Valuation allowance (1) .........................          1,625,733                 -              -                -
Other............................................            (2,216)             1,698            907            (330)
                                                   -----------------  ----------------- -------------   --------------
Actual tax provision under U.S. GAAP.............  Ps.        96,652  Ps.       46,492   Ps.   66,254   Ps.     42,989
                                                   =================  ================= =============   ==============


</TABLE>


                                      F-74


<PAGE>


                 Grupo Financiero Galicia S.A. and Subsidiaries

                 Notes to the Consolidated Financial Statements
    For the fiscal year ended December 31, 2001, for the six-month transition
     period ended December 31, 2000 and for the fiscal years ended June 30,
   2000 and 1999 (Expressed in thousands of Argentine pesos, except as noted)


(1)  Valuation  allowance:  as  described  in  Note 1 to the  Group's  financial
statements,  there is substantial  doubt of the Group's ability to continue as a
going concern.  This situation  constitutes  significant negative evidence under
FAS 109 as to the  realizability  of deferred  tax assets and thus,  a valuation
allowance  would be required for all deferred tax assets that are not assured of
realization  by either (1)  carryback to prior years or (2) reversal of existing
taxable  temporary  differences.  Under  U.S.  GAAP,  the Group  provided a full
reserve of its  deferred  tax  assets  after  netting  the  future  reversal  of
temporary  differences.  Based on the  Argentine's  Income  Tax Law there are no
provisions that allow the Company to carryback tax losses to prior years.

b.   Commissions on Loans

Under Argentine  Banking GAAP, the Bank does not defer certain loan  origination
costs relating to credit cards. In accordance with U.S. GAAP under SFAS 91, loan
origination  fees  net of  certain  direct  loan  origination  costs  should  be
recognized over the life of the loan as an adjustment of yield.

c.   Intangible Assets

Included  in  organization  and  development  costs of the Bank  are  costs  for
compensation and severance payments to Bank employees as part of restructurings.
These items are being  amortized  over 60 months.  U.S.  GAAP requires that such
costs be expensed as incurred.

The Bank  amortizes  deferred  expenses for setting up branches over the related
lease agreements, a maximum of 60 months.  Subsequent to the year ended June 30,
1999, in accordance  with SOP 98-5  effective for fiscal years  beginning  after
December 15, 1998, such start-up costs should be expensed as incurred.

Goodwill recorded on the purchase of credit card companies is being amortized in
10 years  for  Argentine  Banking  GAAP  purposes.  Under  U.S.  GAAP,  a 5 year
amortization  period  was  elected to  represent  the  period  benefited  by the
intangible asset in accordance with APB 17.

For the  purposes of U.S.  GAAP,  goodwill is reviewed for  impairment  whenever
events or changes in circumstances indicate that the carrying amount of an asset
may not be recoverable.  Such evaluation is based on various analyses  including
undiscounted  cash flow projections that considers  circumstances  that occurred
subsequent  to  December  31,  2001.   Under   Argentine  GAAP,  the  facts  and
circumstances  subsequent  to December  31, 2001,  including  the effects of the
devaluation  of the peso,  are not  considered in the  assessment of a company's
ability to continue as a going concern. For the reconciliation to U.S. GAAP, the
Group has recorded a loss on its financial statements as of December 31, 2001.

Under  U.S.  GAAP the SOP 98-1,  effective  for  fiscal  years  beginning  after
December  15,1998,  define  three  stages  for the  costs of  computer  software
developed or obtained  for internal  use: the  preliminary  project  stage,  the
application development stage and the post-implementation  operation stage. Only
the second  stage costs should be  capitalized.  Under  Argentine  GAAP the Bank
capitalized costs relating to all three of the stages of software development.

The Group,  following  the  guidelines  established  by the  article  202 of the
Argentine  Commercial  Companies  Law,  has  deducted  from the  Share  Issuance
Premiums the organizational costs related to the exchange offer and the issuance
of shares  conducted in July 2000.  Under U.S. GAAP and following the guidelines
established  by SAB 50, the  organizational  costs such as legal,  printing  and
other costs  related to the exchange  offer and the issuance of shares have been
considered an intangible asset and a 5 year  amortization  period was elected to
represent the period  benefited by the intangible  asset. The audit fees related
to this these transactions have been expensed as incurred, in accordance to U.S.
GAAP.


                                      F-75

<PAGE>

                 Grupo Financiero Galicia S.A. and Subsidiaries

                 Notes to the Consolidated Financial Statements
    For the fiscal year ended December 31, 2001, for the six-month transition
     period ended December 31, 2000 and for the fiscal years ended June 30,
   2000 and 1999 (Expressed in thousands of Argentine pesos, except as noted)


d.   Loan Loss Reserves

The Bank's  accounting  for its loan loss reserve  differs in some respects with
practices of U.S. based banks. The most significant differences follow:

     (i)  Loan Charge Offs and Recoveries

The Bank records  recoveries on previously  charged-off loans directly to income
and records the amount of  charged-off  loans in excess of amounts  specifically
allocated  as a  direct  charge  to the  income  statement.  The  Bank  does not
partially charge off troubled loans until final disposition of the loan, rather,
the allowance is maintained on a loan-by-loan basis for its estimated settlement
value. The banking industry  practice in the United States is to account for all
charge off and recovery  activity  through the  allowance for loan loss account.
Further,  loans are generally  charged to the allowance account when all or part
of the loan is considered  uncollectible.  In connection  with loans in judicial
proceedings,  resolution  through the judicial  system may span  several  years.
Loans in judicial proceedings, greater than three years at December 31, 2001 and
2000, June 30, 2000 and 1999, amounted to Ps.153,556, Ps.112,444, Ps.113,828 and
Ps.150,644, respectively. Had these loans been charged off, the balance of loans
and the  allowance  for loan losses would  decrease by this  amount.  The Bank's
practice  does not affect the  accompanying  statements  of income as the Bank's
reserve contemplates all losses inherent in those troubled loans.

     (ii) Loans - Non-financial Public Sector

During the fiscal year ended  December 31, 2001,  and as a consequence of Decree
No.1387/01,  effective  as of November  6, 2001,  the Bank  swapped  part of its
Argentine  public-sector  debt  instruments,   under  the  Promissory  Note/Bond
program, for Secured Loans.

As established by article 20 of the above mentioned  decree,  the conversion was
made at the nominal value,  at a rate of exchange of Ps.1=U.S.$1 and in the same
currency as that of the converted obligation.

The  Argentine  Central Bank provided  that the  difference  between the nominal
value  of the  Secured  Loans  and the  book  value  of the  public-sector  debt
instruments  exchanged  (in the case of  securities,  classified  and  valued as
"investment  accounts" or "for trading  purposes",  under Argentine Central Bank
rules) must be credited to income and added to the recorded  amount  included in
"Loans - To the  non-financial  public sector" on a monthly basis, in proportion
to the term of each of the secured loans received.

In accordance with U.S. GAAP, satisfaction of one monetary asset (in this case a
debt  security) by the receipt of another  monetary asset (in the case a Secured
Loan) for the  creditor  is  generally  based on the  market  value of the asset
received in satisfaction of the debt. In this particular  case, the Secured Loan
being  received is  significantly  different in structure and in interest  rates
than the debt  securities  swapped.  Therefore,  the fair value of the loans was
determined on the balance sheet date based on the contractual  cash flows of the
loan received discount at an estimated market value.The  estimated fair value of
the loan received will  consitute  the cost basis of the asset.  The  difference
between the cost basis and amounts expected to be collected will be amortized on
an  effective  yield basis over the life on the loan.  In  determining  the fair
value of the new loans  received,  the Bank  used an  average  internal  rate of
return of approximately 32% to discount the contractual cash flows.

In  addition,  the Group has  offered to  exchange  certain  loans to  Argentine
provincial  governments for loans of the Argentine Federal  Government,  however
that  exchange has not been  finalized.  The Group has other loans to provincial
governments  that,  in  addition to the  aforementioned  provincial  loans,  are
considered  to be  impaired  under U.S.  GAAP in  accordance  wih  Statement  of
Financial Accounting Standards No. 114.  Accordingly,  the Group has established
an allowance for loan losses on loans to Argentine Provinces.


                                      F-76

<PAGE>


                 Grupo Financiero Galicia S.A. and Subsidiaries

                 Notes to the Consolidated Financial Statements
    For the fiscal year ended December 31, 2001, for the six-month transition
     period ended December 31, 2000 and for the fiscal years ended June 30,
   2000 and 1999 (Expressed in thousands of Argentine pesos, except as noted)


     (iii) Impaired Loans - Non-financial private sector and residents abroad


For the  purposes of reporting  under U.S.  GAAP,  the Bank adopts  Statement of
Accounting  Standards No. 114,  "Accounting  for  Creditors for  Impairment of a
Loan" ("SFAS 114") as amended by Statement of Financial Accounting Standards No.
118,  "Accounting by Creditors for Impairment of a Loan - Income Recognition and
Disclosures"  ("SFAS  118").  SFAS 114, as amended,  requires  that the carrying
value of an impaired  loan be generally  based on the present  value of expected
future cash flows discounted at the loan's  effective  interest rate or the fair
value of the collateral, if the loan is collateral dependent.  Under SFAS 114, a
loan is considered impaired when, based on current  information,  it is probable
that the  borrower  will be  unable to pay  contractual  interest  or  principal
payments  as  scheduled  in the loan  agreement.  SFAS 114  applies to all loans
except  smaller-balance  homogeneous consumer loans, loans carried at fair value
or the lower of cost or fair value, debt securities, and leases.

The  Bank  applies  SFAS  114  to  all  commercial  loans  classified  as " With
problems",  "Insolvency  Risks" and  "Uncollectible" or commercial loans greater
than 90 days  past  due.  In  addition,  as of  December  31,  2001 the Bank has
included in the scope of SFAS 114,  other loans with  potential risk besides the
above-mentioned  for  Ps.892,639.The  Bank  specifically  calculates the present
value of estimated cash flows for  commercial  loans in excess of Ps.200,000 and
greater  than 90 days  past  due.  For  commercial  and  other  loans  in  legal
proceedings, loans in excess of Ps.200,000 are specifically reviewed either on a
cash-flow or  collateral-value  basis,  both  considering  the estimated time to
settle the  proceeding.  For  commercial  loans under the  thresholds  described
above,  the Bank believes the  percentages  applied under the Central Bank rules
result in an allowance on such loans that  approximates  the amounts  under SFAS
114.

In addition the Bank has performed a migration  analysis for consumer  loans and
all performing  commercial loans, as detailed in, "Loan loss reserves under U.S.
GAAP", in the selected statistical information.

The following information relates to the Bank's impaired loans:

<TABLE>
<CAPTION>

                                                                Grupo Galicia                        Banco Galicia
                                                       --------------------------------- ---------------------------------
                                                         December 31,    December 31,                   June 30,
                                                       --------------------------------- ---------------------------------
                                                             2001            2000                2000             1999
                                                       --------------------------------- ----------------  ---------------
<S>                                                    <C>                <C>             <C>              <C>

Total impaired loans.................................. Ps.    1,334,806         230,174  Ps.     217,565   Ps.    200,028

Average impaired loans during the year................        1,185,723         228,527          213,160          207,615

Impaired loans where no additional loan loss
allowance has been provided in accordance with FAS
114...................................................          217,434         133,611          118,536           85,130

Cash payments received for interest on impaired loans,
Recognized as income..................................            1,457           1,223            1,647            1,729


Allowance for impaired loans under SFAS 114...........          582,162          98,744           93,520          102,157

</TABLE>

     (iv) Credit Cards

The Group  establishes  its  reserve for credit card loans based on the past due
status of the loan.  All loans greater than 180 days has been reserved at 50% in
accordance  with the rules  established  by the Central Bank.  Under U.S.  GAAP,
loans greater than 180 days past due should charged off. As a result charge offs
the credit card  portfolio  under U.S.  GAAP would be increased  Ps.32,500.  The
Group also increased its



                                      F-77


<PAGE>

                 Grupo Financiero Galicia S.A. and Subsidiaries

                 Notes to the Consolidated Financial Statements
    For the fiscal year ended December 31, 2001, for the six-month transition
     period ended December 31, 2000 and for the fiscal years ended June 30,
   2000 and 1999 (Expressed in thousands of Argentine pesos, except as noted)


reserve for credit card loans by a like amount to cover additional loss exposure
inherent in the credit card portfolio.

e.   Government Securities and Other Investments

     (i)  Investment Securities

The Bank's government  securities and certain other securities are considered as
"available  for sale" under U.S. GAAP. As of December 31, 2001, the Bank did not
hold government  securities  classified as investment securities under Argentine
Central Bank rules.

The gross gain on sales of government  securities  considered as "available  for
sale" under U.S. GAAP amounted to Ps.949, Ps.403, Ps.8,939 and Ps.14,474 for the
fiscal year ended December 31, 2001, for the six-month period ended December 31,
2000 and for the years ended June 30, 2000 and 1999, respectively; and the gross
losses on sales from  government  securities  classified as "available for sale"
under U.S. GAAP amounted to Ps.(7),  Ps.(1) Ps.(161) and Ps.(322) for the fiscal
year ended December 31, 2001,  for the six-month  period ended December 31, 2000
and for the years ended June 30, 2000 and 1999, respectively.

Argentine  Banking  GAAP  provides  that only coupon  interest,  rather than the
discounts  or  premiums  on  purchase,  can be  accrued  on  available  for sale
securities as of March 1, 2000.  Therefore  from March 1, 2000,  the cost of the
investment  includes  the purchase  price plus the amount of the accrued  coupon
interest.  For the  purposes  of U.S.  GAAP the  Bank  continued  accreting  and
amortizing  discounts  and premiums as a component of its interest  income.  For
U.S. GAAP the cost of the  investments  continued to be calculated in accordance
with the amortized cost basis. As mentioned previously, as of December 31, 2001,
the Bank did not hold government  securities classified as investment securities
under Argentine Central Bank rules.

     (ii) Structured Notes

During the year ended June 30, 1999 the Bank  transferred  investments  from its
available-for-sale  portfolio in exchange for a structured  note. The cash flows
receivable on the structured note are linked to the cash flows on the underlying
security.

The Bank accounted for this  transaction by eliminating  the unrealized  losses,
then included in equity, and recording the structured note at its face value.

Under U.S.  GAAP the above  transfer  would not qualify as a sale under SFAS 125
"Accounting for Transfers and Servicing of Financial Assets and  Extinguishments
of  Liabilities"  because  the Bank  retains a 100%  beneficial  interest in the
transferred  assets.  Changes in the market value of the securities  transferred
will continue to be recognized under SFAS 115.

During November 2001, this structured note was dissolved as the underlying bonds
were part of the swap transaction described in 39.d(ii).

     (iii) Transfers of Investments

During the year ended June 30, 1998 the Bank has transferred certain investments
in its trading portfolio to the available-for-sale category.

The  fundamental  nature of the  Bank's  investment  philosophy  did not  change
significantly  enough  to  warrant  a change  in  classification  for U.S.  GAAP
purposes.  The Bank has  continued  to account  for  securities  which have been
reclassified to the available-for-sale portfolio, as defined under the Argentine
Central Bank



                                      F-78

<PAGE>


                 Grupo Financiero Galicia S.A. and Subsidiaries

                 Notes to the Consolidated Financial Statements
    For the fiscal year ended December 31, 2001, for the six-month transition
     period ended December 31, 2000 and for the fiscal years ended June 30,
   2000 and 1999 (Expressed in thousands of Argentine pesos, except as noted)


accounting rules, as trading  securities for U.S. GAAP purposes.  As a result of
this  adjustment,  the  unrealized  losses on these  securities  were charged to
income for the year ended June 30, 1999.

f.   Items in Process of Collection

The Bank does not give  accounting  recognition  to checks  drawn on the Bank or
other banks,  or other items to be collected until such time as the related item
clears  or is  accepted.  Such  items  are  recorded  by the Bank in  memorandum
accounts.  U.S.  banks,  however,  account for such items through  balance sheet
clearing accounts at the time the items are presented to the Bank.

The Bank's assets and liabilities would be increased by approximately Ps.867,524
and  Ps.645,973  had  U.S.  GAAP  been  applied  at  June  30,  2000  and  1999,
respectively.   The  Group's  assets  and  liabilities  would  be  increased  by
approximately Ps.1,166,197 and Ps.810,354 had U.S. GAAP been applied at December
31, 2001 and 2000, respectively.

g.   Derivative Instruments

As disclosed in Note 2.12 and Note 30 to these  financial  statements  the Group
uses a variety of  derivatives  in order to manage  its market  risk and to take
advantage of market  opportunities.  As disclosed in note 2.12 the Bank does not
account for these derivaties on a marked to market basis.

Under U.S. GAAP SFAS 133 as amended by SFAS 137 and SFAS 138 was  applicable for
all fiscal quarters of all fiscal years beginning after June 15, 2000.

SFAS No. 133  establishes  the standards of accounting and reporting  derivative
instruments,   including  certain  derivative  instruments  in  other  contracts
(collectively referred to as derivatives) and hedging activities. This Statement
requires institutions to recognize all derivatives in the balance sheet, whether
as assets or liabilities,  and to measure those instruments at their fair value.
If certain  conditions are met, a derivative may be  specifically  designated as
(a) a hedge for the exposure to changes in the fair value of a recorded asset or
liability or unrecorded firm commitment, (b) a hedge for the exposure. If such a
hedge  designation is achieved then special hedge  accounting can be applied for
the hedged transactions, that will reduce the volatility in the income statement
to the extent that the hedge is effective.  In order for hedge  accounting to be
applied the  derivative  and the hedged item must meet  strict  designation  and
effectiveness tests.

As of  December  31,  2001 and  2000 the  Group  had not  designated  any of its
derivatives as fair value,  cash flow or foreign  currency  hedges in accordance
with the  provisions of SFAS 133.  Therefore,  under the provisions of SFAS 133,
the  derivatives  would be accounted  for at fair value in the balance sheet and
the unrealized gains and losses on those  derivatives  would be accounted for in
the income  statement.  Thie net gain  recognized  at  December  31, 2000 can be
broken down between a net gain arising  from the  cumulative  effect of adopting
SFAS  133 of  Ps.18,209  as of July 1,  2000,  a net  loss  of  Ps.9,921  on the
revaluation  of the  derivative  financial  instruments  from  July  1,  2000 to
December 31, 2000.

h.   Forward Contracts in Foreign Currency

Apart from the valuation  differences for derivative financial  instruments that
have been  discussed  above  the Bank  accounts  for  forward  foreign  currency
contracts by recognizing a receivable and a payable for the currencies for which
it will make a gross settlement.

Under SFAS 52 and SFAS 80,  applicable  for the Group until June 30,  2000,  and
under SFAS 133,  applicable  for the Group from July 1, 2000 until  December 31,
2000, forward contracts are recorded on a net rather than under a gross basis.


                                      F-79

<PAGE>

                 Grupo Financiero Galicia S.A. and Subsidiaries

                 Notes to the Consolidated Financial Statements
    For the fiscal year ended December 31, 2001, for the six-month transition
     period ended December 31, 2000 and for the fiscal years ended June 30,
   2000 and 1999 (Expressed in thousands of Argentine pesos, except as noted)


In addition to the adjustment  recorded for the purposes of SFAS 133, the Bank's
assets  and  liabilities   would  be  decreased  by  approximately   Ps.170,652,
Ps.1,195,414 and Ps.1,142,262 had U.S. GAAP been applied as of December 31, 2001
and 2000 and June 30, 2000, respectively.

i.   Repurchase and Reverse Repurchase Agreements

The Bank enters into repurchase and reverse  repurchase  agreements of financial
instruments  on a basis  different  from that required  under U.S.  GAAP. At the
initial transaction date, the Bank records the government securities purchase or
sale and records the amount of cash and  security to be  exchanged in the future
as a receivable or payable.

Under U.S. GAAP, for repurchase and reverse repurchase transactions entered into
on or prior to  January  1,  1998,  only the  receipt or payment of cash and the
related payable or receivable for the borrowing or lending of cash was recorded.

For  repurchase  and reverse  repurchase  transactions  entered into on or after
January 1, 1998 to July 30, 2000 debtors under repurchase  agreements reclassify
financial  assets  pledged as collateral in certain  circumstances  in which the
secured  party has taken  control of these  assets.  As of December 31, 2001 and
2000,  debtors under  repurchase  agreements  must reclassify  financial  assets
pledged as  collateral  irrespective  of  whether  the  secured  party has taken
control of the  assets.  For  repurchase  and  reverse  repurchase  transactions
entered into on or after January 1, 1998,  secured parties must recognize assets
received  as  collateral  on the  balance  sheet only in the case of sale of the
collateral or default of the borrower.

The  Bank's  assets  and  liabilities   would  be  decreased  by   approximately
Ps.1,355,465  and  Ps.1,078,256  had U.S.  GAAP been  applied as of December 31,
2000,  and June 30,  2001,  respectively.  As of December 31, 2001 there were no
reverse repurchase agreements.

j.   Transfers of Financial Assets

Financial trust "Galtrust I"
----------------------------

The financial  trust "Galtrust I" was created in October 2000 in connection with
the securitization of provincial loans for a total amount of Ps.500 million. The
securitized  loans  were  from the  portfolio  of loans  granted  to  provincial
governments,  guaranteed by the federal tax revenues  shared with the provincial
governments.  This trust was recorded under Argentine  Central Bank rules in the
"Other  Receivables  from  Financial   Brokerage",   account  in  the  financial
statements  and its balance as of December 31, 2001 and 2000, was Ps.296 million
and Ps.448 million,  respectively. The Bank considers this transaction as a sale
under U.S. GAAP,  following the rules  established  by FAS 125,  Galtrust I debt
securities  and  certificates  retained by the Bank are considered as "available
for sale" under U.S. GAAP and the unrealized  gains (losses) on these securities
are reported as an adjustment to shareholders'  equity, unless unrealized losses
are deemed to be other than  temporary in accordance  with Emerging  Issues Task
Force No. 99-20.  The unrealized loss on the retained  interests at December 31,
2001 has been deemed to be other than  temporary  and such loss has been charged
to  income.  The  retained  interests  were  initially  recorded  based on their
allocated book value using the fair value allocation method.

For  purposes of  estimating  the fair value of the  retained  interests  in the
securitization   trusts  valuation  models  were  used  which  consider  certain
assumptions  in  estimating  future  cash flows and a rate under  which the cash
flows are discounted.

These significant assumptions include:



                                      F-80

<PAGE>

                 Grupo Financiero Galicia S.A. and Subsidiaries

                 Notes to the Consolidated Financial Statements
    For the fiscal year ended December 31, 2001, for the six-month transition
     period ended December 31, 2000 and for the fiscal years ended June 30,
   2000 and 1999 (Expressed in thousands of Argentine pesos, except as noted)


     -    Cumulative  prepayment rate estimated based on the prepayment  history
          of  similar  loans.  This rate was  equivalent  to 1.52% as of October
          2000, December 31, 2000 and December 31, 2001.

     -    As of December  31,  2000 and 2001,  there had been no  experience  of
          losses on these loans. The credit risk reflected by the  subordination
          of the B and C note  was  taken  into  account  in the  discount  rate
          applied by the Bank.  The  discount  rates  used as of  October  2000,
          December 31, 2000 and 2001 were as follows.


<TABLE>
<CAPTION>

Discount rate for: (a)                             December 31,        December 31,         October
                                               -----------------    -----------------    --------------
                                                       2001               2000               2000
                                               --------------------------------------------------------
<S>                                             <C>                 <C>                  <C>

 Galtrust I Class A Debt Securities                      -                8.5%               9.5%
 Galtrust I Class B Debt Securities                    39.2%             12.0%              12.6%
 Galtrust I Participation Certificates                 39.2%             13.0%              13.0%

</TABLE>

(a)  The rate is based upon the Bank's estimate of comparable  rates of discount
     used in similar rated bonds in Argentina.

If the  discount  rate used  above  were to  increase  by 4%, the value of these
securities would have decreased by Ps.5,583 at December 31, 2001.

Financial trust "Galtrust II, III, IV and V"
--------------------------------------------

As described in Note 34 of the Group's financial statements on December 17, 2001
the Bank entered into  securitization  transactions  where the Bank  established
four different  trusts and transferred to the trusts ownership of mortgage loans
in exchange for debt securities and residual interests in the trusts.

These  transfers  would not be  considered  as a sale for U.S. GAAP or Argentine
GAAP purposes.  However, in accordance with Financial Accounting Standards Board
Statement  No. 140, at the  completion  of a transfer of financial  assets,  the
transferor  should  carry in its balance  sheet any  retained  interests  in the
transferred  assets. The cost basis of the assets transferred would be allocated
to the retained  interests  based on their  relative  fair values at the date of
transfer.  Subsequently,  those  retained  interests  would be accounted  for as
available for sale  securities.  For Argentine  GAAP  purposes,  these  retained
interests are accounted for at cost plus accrued interest.

k.   Acceptances

Under  Argentine  GAAP,  acceptances  are accounted for in memorandum  accounts.
Under U.S. GAAP,  third party  liability for  acceptances  should be included in
"Other  receivables  resulting  from  financial  brokerage"   representing  Bank
customers' liabilities on outstanding drafts or bills of exchange that have been
accepted  by the Bank.  Acceptances  should be  included  in "Other  liabilities
resulting from financial  brokerage"  representing the Bank's liability to remit
payment upon the presentation of the accepted drafts or bills of exchange.

The Bank's assets and liabilities would be increased by approximately Ps.70,193,
Ps.63,357, Ps.63,042 and Ps.68,862 had U.S. GAAP been applied as of December 31,
2001 and 2000, and June 30, 2000 and 1999, respectively.


                                      F-81

<PAGE>

                 Grupo Financiero Galicia S.A. and Subsidiaries

                 Notes to the Consolidated Financial Statements
    For the fiscal year ended December 31, 2001, for the six-month transition
     period ended December 31, 2000 and for the fiscal years ended June 30,
   2000 and 1999 (Expressed in thousands of Argentine pesos, except as noted)


l.   Year 2000 Costs

Under  Argentine  GAAP  costs  related  to  the  Year  2000  project  have  been
capitalized.  Under U.S.  GAAP costs  relating to the Year 2000 project  arising
from the modification of existing systems must be expensed as incurred.

m.   Foreign Exchange Difference

As described in Note 1, the official  exchange rate between the U.S.  dollar and
the  Argentine  peso was 1 to 1 at  December  31,  2001 and for  Argentine  GAAP
purposes, this rate was used to translate all U.S. dollar denominated assets and
liabilities at December 31, 2001.

For U.S. GAAP purposes,  foreign currency  transactions  should be translated at
the applicable rate at which those particular  transactions  could be settled at
the balance sheet date. In anticipation of an announced  devaluation,  "exchange
houses"  in  Argentina  (used  for  limited  personal  transactions  and not for
settling business  transactions) started exchanging dollars at 1.4 or more pesos
to the dollar prior to December 31, 2001.  Such  exchange  houses were closed at
December 31, 2001.  Through January 10, 2002, no transactions  were conducted in
U.S. dollars and there was no  exchangeability  between the peso and the dollar.
Under Statement of Accounting  Standards No. 52, if the exchangeability  between
two  currencies  is  temporarily  lacking at the balance  sheet date,  the first
subsequent rate at which exchanges could be made is used for translating foreign
currency  transactions.  In this case,  the January 11, 2002,  exchange  rate of
Ps.1.6 to U.S.$1 was the first  available rate after year end and thus that rate
was used for U.S. GAAP purposes to translate U.S. dollar  denominated assets and
liabilities at December 31, 2001.

In addition,  the Group's equity holdings in Argentine  companies were similarly
adjusted for its  proportional  effect of applying the Ps.1.6 to U.S.$1 exchange
rate to the U.S. dollars denominated assets and liabiliites of such companies at
December 31, 2001.


                                      F-82

<PAGE>

                 Grupo Financiero Galicia S.A. and Subsidiaries

                 Notes to the Consolidated Financial Statements
    For the fiscal year ended December 31, 2001, for the six-month transition
     period ended December 31, 2000 and for the fiscal years ended June 30,
   2000 and 1999 (Expressed in thousands of Argentine pesos, except as noted)


Consolidated Net Income

<TABLE>
<CAPTION>

                                                                         Grupo Galicia                    Banco Galicia
                                                               ------------------------------------------------------------------
                                                               Fiscal year       Six-month
                                                                  ended        period ended            Years ended June 30,
                                                               December 31,    December 31,
                                                              --------------- ----------------  --------------------------------
                                                                   2001            2000               2000             1999
                                                              --------------- ----------------  --------------- ----------------
<S>                                                           <C>             <C>               <C>             <C>
Net income as stated........................................  Ps.    120,057           89,910   Ps.    156,324  Ps.     150,597
Loan origination fees and costs:
   Credit card costs (Note 39b.)............................           1,661             (65)              166            (482)
Intangible assets(Note 39c.):
   Capitalized costs for compensations to Bank's employees..             137              219            2,207            3,207
   Amortization of deferred expenses for setting up of
   branches.................................................           5,230            2,560          (2,305)          (8,065)
   Goodwill amortization....................................         (8,219)          (3,761)          (4,710)            (509)
   Goodwill impairment......................................        (44,726)                -                -                -
Year 2000 costs (Note 39l.).................................           1,364              682          (7,002)          (3,813)
Software costs (Note 39c.),.................................           (714)          (1,674)          (1,758)                -
Loss on exchange of Public Debt (Note 39d(ii))..............       (791,792)                -                -                -
Loan impairment - Public Debt (Note 39d(ii))................     (1,751,015)                -                -                -
Loan impairment - private sector (Note 39d(iii))............       (395,674)            5,148           16,126         (14,139)
Loan impairment - credit cards (Note 39d(iv))...............        (32,500)                -                -                -
Derivative instruments (Note 39g)...........................         (7,859)            8,288                -                -
Amortization of organization costs on exchange offer
(Note 39c)..................................................         (2,127)          (2,750)                -                -
Impairment/loss on Galtrust I securities (Note 39j).........       (254,081)            (352)                -                -
Transfers of investments (Note 39e(iii))....................               -                -                -          (6,861)
Accrued interest of available-for-sale securities (Note
39e(i)).....................................................               -          (5,191)          (2,978)                -
Foreign exchange difference (Note 39m)......................       (775,785)                -                -                -
Foreign exchange difference in Equity investments in
other companies (Note 39m)..................................        (30,621)                -                -                -
Reversal of deferred taxes under Argentine GAAP (Note 39a)..        (20,363)               46         (14,345)           34,662
Deferred taxes, net (Note 39a)..............................         (4,107)            5,835           22,317          (5,196)
Minority interest ..........................................          70,783            (594)                -                -
                                                              --------------- ----------------  --------------- ----------------
Net income (loss) in accordance with U.S. GAAP..............  Ps.(3,920,351)           98,301   Ps.    164,042  Ps.     149,401
                                                              =============== ================  =============== ================
Net income (loss) per share in accordance with U.S. GAAP
(Note 24)...................................................  Ps.    (3.589)            0.096   Ps.      0.140  Ps.       0.128
                                                              =============== ===============   =============== ================
Average number of shares outstanding (in thousands) (Note
24).........................................................       1,092,407        1,023,673        1,171,705        1,171,705
                                                              --------------- ---------------   --------------- ----------------
Net income (loss) per share in accordance with U.S. GAAP
assuming full dilution (Note 24)............................  Ps.    (3.589)            0.096   Ps.      0.140  Ps.       0.128
                                                              =============== ===============   =============== ================


</TABLE>


                                      F-83

<PAGE>

                 Grupo Financiero Galicia S.A. and Subsidiaries

                 Notes to the Consolidated Financial Statements
    For the fiscal year ended December 31, 2001, for the six-month transition
     period ended December 31, 2000 and for the fiscal years ended June 30,
   2000 and 1999 (Expressed in thousands of Argentine pesos, except as noted)


Consolidated Shareholders' Equity

<TABLE>
<CAPTION>
                                                                         Grupo Galicia                    Banco Galicia
                                                               -------------------------------------------------------------------
                                                                          December 31,                Years ended June 30,
                                                              ---------------  ---------------  ----------------------------------
                                                                   2001            2000               2000             1999
                                                              ---------------- ---------------  --------------- ------------------
<S>                                                           <C>              <C>              <C>             <C>

Shareholders' equity as stated.............................   Ps.    1,408,496      1,320,829   Ps.   1,332,149  Ps    1,210,693
Loan origination fees and costs (Note 39b.)................              5,926          4,265             4,330            4,164
Intangible assets (Note 39c.):
  Capitalized costs for compensations to the Bank's
  employees................................................                  -          (137)             (356)          (2,563)
  Amortization of deferred expenses for setting up of
  branches.................................................           (24,579)       (29,809)          (32,369)         (30,064)
  Goodwill amortization....................................           (19,630)       (11,411)           (7,650)          (2,940)
  Goodwill impairment......................................           (44,726)              -                 -                -
  Software costs...........................................            (4,146)        (3,432)           (1,758)                -
Loss on exchange of Public Debt(Note 39d(ii))..............          (791,792)              -                 -                -
Loan impairment - Public Debt (Note 39d(ii))...............        (1,751,015)              -                 -                -
Loan impairment - private sector (Note 39d(iii))...........          (405,700)       (10,026)          (15,174)         (31,300)
Loan impairment - credit card (Note 39d(iv))...............           (32,500)              -                 -                -
Unrealized appreciation (depreciation) of available-for-
sale securities (Note 39e(j))..............................                 -        (58,181)          (58,049)        (125,210)
Structured notes (Note 39e (ii)) ..........................                 -        (57,447)          (60,136)         (86,788)
Derivative instruments (Note 39g)..........................               429           8,288                 -                -
Tax effect unrealized appreciation (depreciation) of
available-for-sale securities (Note 39e (i))...............                 -          20,363            20,317           43,824
Tax effect structured notes (Note 39e (ii))................                 -          20,106            21,047           30,376
Amortization of organization costs related to the
exchange offer (Note 39c) .................................           (4,877)         (2,750)                 -                -
Organization costs related to the exchange offer (Note
39c).......................................................            11,257          11,257                 -                -
Tax effect organization costs related to the exchange
offer (Note 39c)...........................................                 -         (3,940)                 -                -
Loss on sale of Galtrust I debt securities (Note 39j)......                 -           (352)                 -                -
Unrealized appreciation (depreciation) of Galtrust I
securities (Note 39j)......................................         (254,433)        (15,209)                 -                -
Tax effect Galtrust I securities (Note 39j)................                 -           5,323                 -                -
Unrealized appreciation (depreciation) of Galtrust II,
III, IV, V securities (Note 39j)...........................          (26,111)               -                 -                -
Minority interest..........................................            78,314           7,531                 -                -
Year 2000 costs (Note 39l).................................          (10,574)        (11,938)          (12,620)          (5,618)
Foreign exchange difference (Note 39m).....................         (775,785)               -                 -                -
Equity investments in other companies (Note 39m) ..........          (30,621)               -                 -                -
Investment securities deferred tax provision (Note 39e
(i)).......................................................                 -          20,363            20,317           34,662
Deferred taxes, net (Note 39a).............................                 -           8,047             2,212         (20,105)
                                                              ---------------- ---------------  ---------------  -----------------
Consolidated shareholders' equity (deficit) in
accordance with U.S GAAP...................................   Ps. (2,672,067)  Ps.  1,221,740   Ps.   1,212,260   Ps.  1,019,131
                                                              ================ ===============  ===============  =================

</TABLE>


                                      F-84

<PAGE>


                 Grupo Financiero Galicia S.A. and Subsidiaries

                 Notes to the Consolidated Financial Statements
    For the fiscal year ended December 31, 2001, for the six-month transition
     period ended December 31, 2000 and for the fiscal years ended June 30,
   2000 and 1999 (Expressed in thousands of Argentine pesos, except as noted)


Roll forward  analysis of  shareholder's  equity under U.S. GAAP at December 31,
2001 and 2000, and June 30, 2000 and 1999:

<TABLE>
<CAPTION>

                                                      Banco Galicia
-----------------------------------------------------------------------------------------------------------------------------------
                                                                        Profit Reserves
                                                                    ---------------------
                                                       Adjustments
                                                          to                                  Other                      Total
                                Capital     Paid in   Shareholders'                         Comprehensive   Retained  Shareholders'
                                 Stock      Capital      Equity        Legal      Other     Income(loss)    Earnings     Equity
                              ----------- ----------- ------------- ----------- ---------- --------------- ---------- -------------
<S>                           <C>         <C>         <C>           <C>         <C>        <C>             <C>        <C>

Balance as of June 30,
1998........................  Ps. 371,942 Ps. 310,678 Ps.   69,698  Ps. 111,132 Ps.(3,784)  Ps.  (66,722)  Ps.165,718 Ps.   958,662
Distribution of retained
earnings:
Legal reserve...............            -          -             -       24,475          -             -     (24,475)             -
Reserve provided by the
By-Laws.....................            -          -             -            -         11             -         (11)             -
Cash dividends..............            -          -             -            -          -             -     (21,688)      (21,688)
Stock distributions to
shareholders (33,474,783
shares).....................       33,475          -             -            -          -             -     (33,475)             -
Unrealized depreciation of
available-for-sale
securities, net of
tax.........................            -          -             -            -          -      (67,244)           -       (67,244)
Net income for the year
under U.S. GAAP.............            -          -             -            -          -             -      149,401       149,401
                              ----------- ----------- ------------  ----------- ---------- -------------   ---------- -------------
Balance at June 30,
1999........................      405,417 Ps. 310,678 Ps.  69,698   Ps. 135,607 Ps.(3,773)  Ps.(133,966)   Ps.235,470 Ps. 1,019,131
                              =========== =========== ============  =========== ==========  ============   ========== =============
Distribution of retained
earnings:
Legal reserve...............            -          -             -       30,119          -             -     (30,119)             -
Reserve provided by the
By-Laws.....................            -          -             -            -          7             -          (7)             -
Cash dividends..............            -          -             -            -          -             -     (34,868)      (34,868)
Stock distributions to
shareholders
(63,245,024 shares).........       63,245          -             -            -          -             -     (63,245)             -
Unrealized appreciation of
available-for-sale
securities, net of
tax.........................            -          -             -            -          -        63,955            -        63,955

Net income for the year                 -          -             -            -          -             -      164,042       164,042
under U.S. GAAP.............  ----------- ----------- ------------  ----------- ---------- ------------- ------------ -------------
Balance at June 30,
2000........................  Ps. 468,662 Ps.310,678  Ps.   69,698  Ps. 165,726 Ps.(3,766) Ps.  (70,011) Ps.  271,273 Ps. 1,212,260
                              =========== =========== ============  =========== ========== ============= ============ =============
<CAPTION>

                                                      Grupo Galicia
-----------------------------------------------------------------------------------------------------------------------------------
                                                                        Profit Reserves
                                                                    ---------------------
                                                       Adjustments
                                                          to                                  Other
                                Capital     Paid in   Shareholders'                         Comprehensive      Retained
                                 Stock      Capital      Equity        Legal      Other     Income(loss)       Earnings
                              ------------ ----------- ------------- ----------- ---------- --------------  --------------
<S>                           <C>          <C>         <C>           <C>         <C>        <C>             <C>

Balance at June 30,
2000........................  Ps.  543,000 Ps. 15,250  Ps.        -  Ps.     890 Ps. 18,439 Ps.  (46,068)   Ps.     30,443
Capital increase approved
by extraordinary meeting of
shareholders held on May
16, 2000 (*)................       549,407     64,001             -            -                 (36,144)         (20,263)
Unrealized appreciation of
available-for-sale
securities, net of tax and
minority interest...........             -          -             -            -          -       (2,833)                -
Organizational costs
related to the exchange
offer, net of tax and
minority interest...........             -      7,317             -            -          -                              -
Net income for the period
under U.S. GAAP.............             -          -             -            -          -             -           98,301
                              ------------ ----------  ------------ ------------ ----------  -------------  --------------
Balance at December 31,
2000.......................   Ps.1,092,407 Ps. 86,568  Ps.        -  Ps.     890 Ps. 18,439   Ps.(85,045)   Ps.    108,481
                              ============ ==========  ============ ============ ==========  =============  ==============

Distribution of retained
earnings:
Legal reserve..............              -          -             -        6,492          -             -          (6,492)
Reserve provided by the
By-Laws....................              -          -             -            -     90,000             -         (90,000)
Cash dividends.............              -          -             -            -          -             -         (32,390)
Unrealized appreciation of
available-for-sale
securities, net of tax and
minority interest...........             -          -             -            -          -        58,934                -
Net loss for the year under
U.S. GAAP...................             -          -             -            -          -             -      (3,920,351)
                              ------------ ----------  ------------ ------------ ----------  -------------  --------------
Balance at December 31,       Ps.1,092,407 Ps. 86,568  Ps.        -  Ps.   7,382 Ps.108,439  Ps. (26,111)   Ps.(3,940,752)
2001........................  ============ ==========  ============ ============ ==========  =============  ==============


<CAPTION>
                                     Total
                                 Shareholders'
                                   Equity
                                --------------
<S>                             <C>
Balance at June 30,
2000........................  Ps.    561,954
Capital increase approved
by extraordinary meeting of
shareholders held on May
16, 2000 (*)................         557,001
Unrealized appreciation of
available-for-sale
securities, net of tax and
minority
interest....................         (2,833)
Organizational costs
related to the exchange
offer, net of tax and
minority interest...........           7,317
Net income for the period
under U.S. GAAP.............          98,301
                              --------------
Balance at December 31,
2000.......................   Ps.  1,221,740
                              ==============

Distribution of retained
earnings:
Legal reserve..............                -
Reserve provided by the
By-Laws....................                -
Cash dividends.............         (32,390)
Unrealized appreciation of
available-for-sale
securities, net of tax and
minority interest...........          58,934
Net loss for the year under
U.S. GAAP...................     (3,920,351)
                              --------------
Balance at December 31,       Ps.(2,672,067)
2001........................  ==============

</TABLE>

(*)  Covered by Board meeting minutes dated July 24, 2000 and July 26, 2000.



                                      F-85

<PAGE>

                 Grupo Financiero Galicia S.A. and Subsidiaries

                 Notes to the Consolidated Financial Statements
    For the fiscal year ended December 31, 2001, for the six-month transition
     period ended December 31, 2000 and for the fiscal years ended June 30,
   2000 and 1999 (Expressed in thousands of Argentine pesos, except as noted)


Comprehensive Income

SFAS 130 "Reporting  Comprehensive  Income" establishes  standards for reporting
and display of  comprehensive  income and its  components  (revenues,  expenses,
gains and losses) in the financial statements. Comprehensive income is the total
of net income and all  transactions,  and other  events and  circumstances  from
nonowner sources.

The following  disclosure presented for the fiscal year ended December 31, 2001,
for the  six-month  period  ended  December 31, 2000 and for the two years ended
June 30, 2000, shows all periods restated to conform with SFAS 130.

<TABLE>
<CAPTION>
                                                        Grupo Galicia                             Banco Galicia
                                              ------------------------------------ ----------------------------------
                                                 Fiscal year     Six-month period
                                               ended December     ended December           Years ended June 30
                                                     31,                31,
                                              ------------------------------------ ----------------------------------
                                                    2001               2000             2000              1999
                                              ------------------------------------ -----------------  ---------------
<S>                                           <C>                <C>               <C>                <C>

Income Statement

Financial Income............................  Ps.    1,619,939    Ps.    822,987    Ps    1,496,405   Ps   1,262,264
Financial Expenditure.......................           964,551           442,792            776,386          696,551
Net Financial Income........................           655,388           380,195            720,019          565,713
Provision for Loan Losses...................         2,891,317           118,533            233,340          230,177
Income from Services........................           526,651           234,900            425,436          377,455
Expenditures from Services..................            97,162            43,683             82,984           83,763
Administrative Expenses.....................           670,799           306,612            621,159          571,025
Net Income (Loss) from Financial Brokerage..       (2,477,239)           146,267            207,972           58,203
Minority Interests..........................            60,727           (6,902)                298         (10,962)
Miscellaneous Income........................           300,425            40,879             65,227          182,839
Miscellaneous Losses........................       (1,707,612)          (35,451)           (43,201)         (37,690)
Net Income (Loss) before Income tax.........       (3,823,699)           144,793            230,296          192,390
Income Tax..................................          (96,652)          (46,492)           (66,254)         (42,989)
                                              -----------------   ----------------   ---------------  ---------------
Net income (loss) under U.S. GAAP...........       (3,920,351)            98,301            164,042          149,401
                                              -----------------   ----------------   ---------------  ---------------

Other comprehensive income gain (loss):

   Unrealized gains (losses) on securities..           58,934            (6,968)             96,791        (106,693)
   Tax effect on unrealized gains (losses)
   on securities............................                -              4,135           (32,836)           39,449
                                              -----------------   ----------------   ---------------  ---------------
Other comprehensive income gain (loss) .....           58,934            (2,833)             63,955         (67,244)
                                              -----------------   ----------------   ---------------  ---------------
                                              -----------------   ----------------   ---------------  ---------------
Comprehensive income (loss).................  Ps. (3,861,417)     Ps.     95,468     Ps.    227,997   Ps      82,157
                                              ==================   ================  ===============  ===============

</TABLE>



                                      F-86


<PAGE>

                 Grupo Financiero Galicia S.A. and Subsidiaries

                 Notes to the Consolidated Financial Statements
    For the fiscal year ended December 31, 2001, for the six-month transition
     period ended December 31, 2000 and for the fiscal years ended June 30,
   2000 and 1999 (Expressed in thousands of Argentine pesos, except as noted)


Concentration of Credit Risk - Argentine Government and Provinces

The Group has significant  exposure to the Argentine Government and Provinces in
the form of secured and other debt  obligations.  As of December 31,  2001,  the
Group had the following loans outstanding:

<TABLE>
<CAPTION>
                                                                        Grupo Galicia
                                                      ---------------------------------------------------
                                                                 Year ended December 31, 2001
                                                      ---------------------------------------------------
                                                          Argentine GAAP              U.S. GAAP
                                                      ---------------------------------------------------
<S>                                                   <C>                          <C>

Argentine Federal Government loans                     Ps.         2,367,547       Ps.           831,832
Argentine Provincial loans                                         1,461,799                     595,347
Other Argentine public loans                                         421,835                     281,195
Galtrust 1 (securitization of Provincial Loans)                      296,050                      41,617
Others (*)                                                           686,869                     686,869
                                                      -----------------------     -----------------------
   Total                                               Ps.         5,234,100       Ps.         2,436,860
                                                      =======================     =======================


</TABLE>

     (*) Includes bonds such as Fiscal Credit  Certificate,  Argentine  External
     Bills and National  Government  Bonds.  The carrying values at December 31,
     2001 are a reasonable estimate of its fair values


The  reduction  in  carrying  value for U.S.  GAAP  purposes  in these loans and
securities is primarily a result of the effect of discounting  future cash flows
of these  loans or  securities  at rates up to 39%.  In some  cases,  such rates
reflect the effect of the severe  increase in country  risk for  obligations  of
Argentina during the year.

If the credit risk, and thus the interest  rates,  of the Argentine  public debt
increase,  then the carrying value of the above obligations will likely decrease
for U.S. GAAP purposes.  Conversely, should the credit risk of Argentina improve
from the condition at December 31, 2001, the carrying value of some of the above
obligations will increase.

Risks and Uncertainties

The prospects of the Argentine  economy and exchange markets that existed at the
end of 2001 were widely  uncertain.  The increasing  public sector deficit,  the
contracting economy and rumors and predictions that Argentina was abandoning the
one-to-one  currency  parity  policy,  as well as the  impending  default on the
country's  external  obligations,  contributed to a great  uncertainty as to the
future of Argentina and its economy.  Significant  measures were put in place in
December, such as the freezing of bank deposits and the introduction of exchange
controls that restricted  capital  outflows.  Market interest and discount rates
for  obligations  of Argentina  increased  significantly  in the last quarter of
2001.

Subsequent  measures  put forth by the  Argentine  government  have added to the
uncertainty,  as many  government  decrees have been issued,  then  subsequently
changed,  modified or  repealed.  Other  decrees lack  specific and  substantive
guidance for  implementing  the new rules.  Still others are being challenged in
the Argentine judicial courts.

Valuation reserves, impairment charges and estimates of market values on assets,
as  established  by the Group for U.S. GAAP purposes are subject to  significant
assumptions  of future cash flows and interest rates for  discounting  such cash
flows.  Losses on the exchange of government bonds,  impairment charges on loans
to Argentine provincial  governments and on retained interests in securitization
trusts were significantly  affected by high discount rates at December 31, 2001.
Should the discount rates change in the future years,  the carrying  amounts and
charges to income and  shareholders'  equity will also change.  In addition,  as
estimates to future



                                      F-87

<PAGE>


                 Grupo Financiero Galicia S.A. and Subsidiaries

                 Notes to the Consolidated Financial Statements
    For the fiscal year ended December 31, 2001, for the six-month transition
     period ended December 31, 2000 and for the fiscal years ended June 30,
   2000 and 1999 (Expressed in thousands of Argentine pesos, except as noted)


cash flows change,  so to will the carrying  amounts which are dependent on such
cash flows.  It is at least  reasonably  possible  that  changes to the carrying
amounts of loans, investments and other assets will be adjusted in the near term
in amounts  that are material to the Group's  financial  position and results of
operations.

Effective  in  February  2002,  pursuant  to  Decree  No.214/02,  the  Argentine
government declared, with certain specified exceptions, the mandatory conversion
of bank deposits  denominated  in foreign  currency into  peso-denominated  bank
deposits  using  a rate of 1.4  pesos  to the  U.S.  dollar  and  the  mandatory
conversion of all U.S.  dollar-denominated  private-sector  debts with Argentine
financial  institutions  into  peso-denominated  debts at a one-to-one  exchange
rate. For more detail on the pesification of financial  institutions' assets and
liabilities,  see Note 1). The  Argentine  government  agreed to issue  bonds to
compensate  banks for the  negative  effects  of the  conversion  into  pesos of
certain  assets  and  liabilities  at  different   exchange  rates  ("asymmetric
pesification")  and the  resulting  short  foreign-currency  positions.  Current
regulations  have  entitled  the Bank to receive  dollar-denominated  government
bonds for the values  mentioned in Note 1. For U.S. GAAP purposes,  the value of
the bonds issued by the government may not be sufficient to compensate the Group
for the losses  incurred.  Any  deficiency  will be  recognized in 2002 and that
deficiency could be significant to the Group's financial position and results of
operation.

As indicated in Note 1 to the financial  statements,  there is substantial doubt
as to the Group's ability to continue as a going concern. As a result,  deferred
tax assets are generally not  recognized.  For U.S. GAAP  purposes,  a valuation
allowance against deferred tax assets of Ps.1,625,733 has been established as it
is more likely  than not that those  deferred  tax assets will not be  realized.
Certain  rulings in the future,  such as whether loans to the government will be
able to offset  debt  payable  to the  government,  may  affect  positively  the
realization of the associated deferred tax assets.  However,  the realization of
new deferred tax assets generated in the short term will be subject to the "more
likely than not" criteria applied at December 31, 2001.


40.  Parent only Financial Statements

The following are the unconsolidated  balance sheets of Grupo Financiero Galicia
S.A. at December 31, 2001 and 2000 and the related unconsolidated  statements of
income,  and cash flows for the fiscal year ended  December 31, 2001 and for the
six-month  transition  period ended December 31, 2000. The presentation of these
financial  statements  is  based  on  the  Argentine  Commercial  Companies  Law
presentation rules.



                                      F-88

<PAGE>

                 Grupo Financiero Galicia S.A. and Subsidiaries

                 Notes to the Consolidated Financial Statements
    For the fiscal year ended December 31, 2001, for the six-month transition
     period ended December 31, 2000 and for the fiscal years ended June 30,
   2000 and 1999 (Expressed in thousands of Argentine pesos, except as noted)


Balance Sheets (Parent Company only)

<TABLE>
<CAPTION>

                                                                    Grupo Galicia
                                                       ----------------------------------------
                                                                    December 31,
                                                       ----------------------------------------
                                                              2001                2000
                                                       ----------------------------------------
                                                          (Unaudited)         (Unaudited)
                                                       ----------------------------------------
<S>                                                     <C>                   <C>
ASSETS
A.  Cash and due from banks
Cash...........................................        Ps.               6     Ps.           7
Banks and correspondents.......................                        156                   5
Other..........................................                          -                  98
                                                       --------------------    -----------------
                                                                       162                 110
D. Other receivables resulting from financial
brokerage
Other receivables included in the
debtor classification regulations..............                     65,858              67,000
Accrued interest receivable included in the
debtor classification regulations..............                         54                 927
                                                       --------------------    -----------------
                                                                    65,912              67,927
F. Equity investment in other companies
In financial institutions......................                  1,312,529           1,243,086
Other.. .......................................                     20,210               6,580
                                                       --------------------    -----------------
                                                                 1,332,739           1,249,666
G. Miscellaneous receivables
Other..........................................                        981                 531
                                                       --------------------    -----------------
                                                                       981                 531

H. Fixed assets................................                        553                 387

J. Intangible assets
Goodwill.......................................                      9,158               2,751
Organization and development expenses..........                         96                  90
                                                       --------------------    -----------------
                                                                     9,254               2,841
                                                       --------------------    -----------------
                  Total Assets.................        Ps.       1,409,601     Ps.   1,321,462
                                                       ====================    =================

                                                                    Grupo Galicia
                                                       ----------------------------------------
                                                                    December 31,
                                                       ----------------------------------------
                                                              2001                2000
                                                       ----------------------------------------
                                                          (Unaudited)         (Unaudited)
                                                       ----------------------------------------
LIABILITIES AND SHAREHOLDERS' EQUITY
M.  Other liabilities resulting from
financial brokerage
Other..........................................        Ps.               -     Ps.         102
                                                       --------------------    ----------------
                                                                         -                 102

N. Miscellaneous liabilities                                           120                  91
Directors and syndics fees payable.............                        985                 440
                                                       --------------------    -----------------
Other..........................................        Ps.           1,105     Ps.         531
                                                       --------------------    -----------------
                 Total Liabilities.............        Ps.           1,105     Ps.         633
                                                       --------------------    -----------------

SHAREHOLDERS' EQUITY ..........................        Ps.       1,408,496     Ps.   1,320,829
                                                       --------------------    -----------------
        Total Liabilities and Shareholders'
        Equity.................................        Ps.       1,409,601     Ps.   1,321,462
                                                       ====================    =================


</TABLE>


                                      F-89

<PAGE>

                 Grupo Financiero Galicia S.A. and Subsidiaries

                 Notes to the Consolidated Financial Statements
    For the fiscal year ended December 31, 2001, for the six-month transition
     period ended December 31, 2000 and for the fiscal years ended June 30,
   2000 and 1999 (Expressed in thousands of Argentine pesos, except as noted)


Statement of Income (Parent Company only)
<TABLE>
<CAPTION>

                                                                     Grupo Galicia
                                                       --------------------------------------
                                                           Fiscal year       Six-month
                                                              ended       transition period
                                                           December 31,   ended December 31,
                                                       --------------------------------------
                                                              2001               2000
                                                       --------------------------------------
                                                          (Unaudited)        (Unaudited)
                                                       --------------------------------------
<S>                                                    <C>                 <C>
A. Financial income
Interest income from other receivables resulting
from financial brokerage..............................                534             1,436
Net income from government and corporate securities... Ps.              -   Ps.          11
                                                       -------------------- ------------------
                                                                      534             1,447
B. Financial expenses
Interest expense from other liabilities resulting
from financial brokerage..............................                  -                 2
Others................................................                  -               182
                                                       -------------------- ------------------
                                                       Ps.              -   Ps.         184

Gross brokerage margin................................                534             1,263

E. Expenses for services
Commissions...........................................                  2                 1
                                                       -------------------- ------------------
                                                       Ps.              2   Ps.           1

G. Administrative expenses
Personnel expenses....................................                936               410
Directors and syndics fees............................                120                91
Other fees............................................                942               157
Advertising and publicity.............................                  1                 -
Taxes.................................................                229                 3
Other operating expenses..............................                990                92
Other.................................................                170               160
                                                       -------------------- ------------------
                                                       Ps.          3,388   Ps.         913
Net income from financial brokerage                               (2,856)               349

H. Miscellaneous income
Net income on long term investments....................           123,898            89,929
Other..................................................               424                63
                                                       -------------------- ------------------
                                                       Ps.        124,322   Ps.      89,992
I. Miscellaneous losses
Other..................................................             1,409               431
                                                       -------------------- ------------------
                                                       Ps.          1,409   Ps.         431

                                                       ==================== ==================
Net income for the period............................. Ps.        120,057   Ps.      89,910
                                                       ==================== ==================


</TABLE>


                                      F-90



<PAGE>


                 Grupo Financiero Galicia S.A. and Subsidiaries

                 Notes to the Consolidated Financial Statements
    For the fiscal year ended December 31, 2001, for the six-month transition
     period ended December 31, 2000 and for the fiscal years ended June 30,
   2000 and 1999 (Expressed in thousands of Argentine pesos, except as noted)


Statement of Cash Flows (Parent Company Only)

<TABLE>
<CAPTION>

                                                                     Grupo Galicia
                                                       --------------------------------------
                                                           Fiscal year       Six-month
                                                              ended       transition period
                                                           December 31,   ended December 31,
                                                       --------------------------------------
                                                              2001               2000
                                                       --------------------------------------
                                                          (Unaudited)        (Unaudited)
                                                       --------------------------------------
<S>                                                    <C>                    <C>
   CHANGES IN CASH
   Cash at the beginning of the period................ Ps.           110      Ps.           431
   Increase/(decrease) in cash........................                52                  (321)
                                                       --------------------   --------------------
   Cash at end of period                                             162                    110

   Cash provided by (used in) operating activities
   Less:
   Operating expenses paid............................           (3,178)                (1,086)
   Plus:
   Other operating income received....................             5,527                    520
                                                       --------------------   --------------------
   Cash provided by (used in) operating activities....             2,349                  (566)

   Other sources of cash
   Increase in short-term debts.......................                 -                    121
   Cash dividends.....................................            53,344                 90,933
   Other sources of cash..............................             2,139                      -
                                                       --------------------   --------------------
   Other sources of cash..............................            55,483                 91,054

   Other uses of cash
   Decrease in short-term debts.......................             (601)                (1,070)
   Increase in fixed assets...........................             (124)                  (359)
   Increase in long-term investments..................          (24,220)               (11,145)
   Dividends paid.....................................          (32,390)                      -
   Other uses of cash.................................             (445)               (78,235)
                                                       --------------------   --------------------
   Total other uses of cash...........................          (57,780)               (90,809)
                                                       --------------------   --------------------
   Increase/(decrease) in cash........................ Ps.            52      Ps.         (321)
                                                       ====================   ====================


</TABLE>


                                      F-91


<PAGE>


                 Grupo Financiero Galicia S.A. and Subsidiaries

                 Notes to the Consolidated Financial Statements
    For the fiscal year ended December 31, 2001, for the six-month transition
     period ended December 31, 2000 and for the fiscal years ended June 30,
   2000 and 1999 (Expressed in thousands of Argentine pesos, except as noted)


New Authoritative Pronouncements

The Financial  Accounting Standards Board ("FASB") has issued certain Statements
of Financial Accounting Standards ("SFAS") which are applicable to the Bank, but
are not yet required and have not yet been adopted.

In July 2001,  the FASB  issued  SFAS No.  141,  "Business  Combinations"  which
supersedes  Accounting  Principles  Board  ("APB")  Opinion  No.  16,  "Business
Combinations"  and amends or supersedes a number of related  interpretations  of
APB Opinion No. 16. The  statement  is effective  for all business  combinations
initiated after June 30, 2001 and for all business combinations accounted for by
the  purchase  method  that are  completed  after  June 30,  2001.  SFAS No. 141
addresses  financial   accounting  and  reporting  for  business   combinations,
eliminates   the   pooling-of-interests   method  of  accounting   for  business
combinations, and prescribes the initial recognition and measurement of goodwill
and other intangible  assets,  accounting for negative goodwill and the required
disclosures in respects of business  combinations.  The adoption of SFAS No. 141
will not have a material impact on the consolidated financial statements.

Also in July 2001, the FASB issued SFAS No. 142,  "Goodwill and Other Intangible
Assets",  which supersedes APB Opinion No. 17, "Intangible Assets". SFAS No. 142
addresses how intangible  assets that are acquired  individually or with a group
of other  assets (but not those  acquired in a business  acquisition)  should be
accounted for in financial statements upon their acquisition.  SFAS No. 142 also
addresses how goodwill and other intangible assets should be accounted for after
they have been initially recognized in the financial statements.  The provisions
of SFAS No. 142 are required to be applied  starting with fiscal years beginning
after December 15, 2001. SFAS No. 142 is required to be applied at the beginning
of an  entity's  fiscal  year  and to be  applied  to  all  goodwill  and  other
intangible  assets  recognized  in its financial  statements  at that date.  The
impact that the adoption of SFAS No. 142 will have on its consolidated financial
statements is not likely to be material.

In August 2001, the FASB issued SFAS No. 144,  "Accounting for the Impairment or
Disposal  of  Long-Lived  Assets".   SFAS  No.  144  supersedes  SFAS  No.  121,
"Accounting for the Impairment of Long-Lived Assets and for Long-Lived Assets to
be Disposed of" and the accounting  and reporting  provisions of APB Opinion No.
30,  "Reporting the Results of Operations - Reporting the Effects of Disposal of
a Segment of a Business,  and Extraordinary,  Unusual and Infrequently Occurring
Events and  Transactions".  SFAS No. 144 retains the  fundamental  provisions of
SFAS No. 121 for  recognition  and  measurement  of the impairment of long-lived
assets to be held and used, but resolves a number of  implementation  issues and
establishes a single  accounting model for assets to be disposed of SFAS No. 144
also retains the requirements to report discontinued  operations separately from
continuing  operations  and extends  that  reporting to a component of an entity
that either has been disposed of by sale,  abandonment or distribution to owners
or is classified as held for sale.  The provisions of SFAS No. 144 are effective
for financial  statements  issued for fiscal years  beginning after December 15,
2001 and their interim  periods.  The  provisions of SFAS No. 144 for long-lived
assets  to be  disposed  of by sale or  otherwise  are  effective  for  disposal
activities  initiated  after  the  effective  date of SFAS No.  144 or after its
initial  application.  Management  is currently  evaluating  the impact that the
adoption of SFAS No. 144 will have on the consolidated financial statements.

In April 2002, the FASB issued SFAS No. 145, "Rescission of SFAS Nos. 4, 44, and
64, Amendment of SFAS No. 13, and Technical  Corrections as of April 2002." SFAS
No. 145 rescinds SFAS No. 4, "Reporting Gains and Losses from  Extinguishment of
Debt," SFAS No. 44,  "Accounting for Intangible  Assets of Motor  Carriers," and
SFAS  No.   64,   "Extinguishments   of  Debt  Made  to   Satisfy   Sinking-Fund
Requirements." As a result, gains and losses from extinguishment of debt will no
longer be  classified  as  extraordinary  items unless they meet the criteria of
unusual or infrequent as described in APB Opinion No. 30, "Reporting the Results
of Operations -Reporting the Effects of Disposal of a Segment of a Business, and
Extraordinary,  Unusual and Infrequently  Occurring Events and Transactions." In
addition, SFAS No. 145 amends SFAS No. 13, "Accounting for


                                      F-92

<PAGE>

                 Grupo Financiero Galicia S.A. and Subsidiaries

                 Notes to the Consolidated Financial Statements
    For the fiscal year ended December 31, 2001, for the six-month transition
     period ended December 31, 2000 and for the fiscal years ended June 30,
   2000 and 1999 (Expressed in thousands of Argentine pesos, except as noted)


Leases," to  eliminate an  inconsistency  between the  required  accounting  for
sale-leaseback  transactions  and the  required  accounting  for  certain  lease
modifications  that have  economic  effects  that are similar to  sale-leaseback
transactions.   SFAS  No.  145  also   amends   other   existing   authoritative
pronouncements  to make various  technical  corrections,  clarify  meanings,  or
describe their applicability under changed conditions. SFAS No. 145 is effective
for  fiscal  years  beginning  after  May  15,  2002.  Management  is  currently
evaluating  the  impact  that  the  adoption  of SFAS No.  145 will  have on the
consolidated financial statements.

In June 2002,  the FASB issued SFAS No. 146,  "Accounting  for Costs  Associated
with Exit or Disposal  Activities".  The issuance of SFAS No. 146  nullifies the
former  guidance  provided by the Emerging  Issues Task Force ("EITF") Issue No.
94-3, "Liability Recognition for Certain Employee Termination Benefits and Other
Costs to Exit an Activity  (including Certain Costs Incurred in a Restructuring"
("EITF  94-3").  SFAS No. 146 requires the  recognition of a liability for costs
associated with exit or disposal activity when the liability is incurred, rather
then on the  date  commitment  to an exit or  disposal  plan.  SFAS  No.  146 is
effective for  liabilities,  related to exit or disposal  activities,  which are
incurred  after  December 31, 2002,  while earlier  application  is  encouraged.
Management is currently  evaluating the impact that the adoption of SFAS No. 146
will have on the consolidated financial statements.


                                      F-93