Grupo Financiero Galicia ( GGAL)

Q3 2011 Earnings Call

November 10, 2011 11:00 AM ET


Pablo Firvida – Head, IR


Daniel Abud – Citi

Federico Rey – Raymond James

Nicolas Chialva – Itaú BBA

Walter Chiarvesio – Santander Bank


Good day and welcome to this Grupo Financiero Galicia SA third quarter 2011 conference call. This call is being recorded. At this time I would like to turn the conference over to Mr. Pablo please go ahead sir.

Pablo Firvida

Thank you. Good morning ladies and gentlemen. Welcome to the Grupo Financiero Galicia third quarter of fiscal year 2011 conference call. I am Pablo Firvida Investor Relations. With me today are some members of the management of the bank and Grupo who want to thank you for attending this call.

I would like a short introduction in order to explain the operating conditions under which the reported results have occurred and summarize the bank's performance during the quarter then we will take your questions.

Some of the statements made during this conference call will be forward looking statements within the meaning of the safe harbor provisions of the US Federal Securities laws. These forward looking statements are subject to risk and uncertainty that could actual results to differ materially from those expressed in the forward looking statements.

During the third quarter, international and financial markets remained highly volatile and with increased uncertainty related to the solvency of certain European economies, specially Greece and the potential contingent to the rest of the region. Economic growth showed signs of a slight recovery compared to the previous quarter in the US. Under the influence of this international scenario, the Argentine economy maintained its good performance, but showing a deceleration as compared to the previous quarter. Private estimates point to a 5.3% year-over-year growth while Argentine GDP is expected to grow around 6.5% for the whole year. During the quarter national fiscal revenues increased 33% year-over-year showing an acceleration as compared to the 31% recorded in the second quarter while growth of primary expenditures accelerated from 32.4% in the second quarter to 36% year-over-year in the third quarter as a consequence of the electoral process. The primary surplus for the quarter amounted to 1.3 billion pesos, 8.4 billion pesos lower than a year before. After interest payments of 4.4 billion pesos, the global balance was at 3.1 billion pesos deficit.

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