Aug 26, 2026 earnings call — Improving profits and loan growth outlook
Net income for Q2 was ARS 258 billion, 12% higher year-over-year.
Revenue $1.7B (est $1.7B) · EPS $1.06 (est $0.98)
Key quotes
"Our projections for loan growth are now around 10% to 15% with more participation in dollar type of companies as it has been happening in the second quarter."
"In the bank, we expect a slight decrease of NPLs ratio in the third quarter and reaching around 6.3% at the end of this year on the NPL ratio."
"As I said, we expect for this year a total growth of 10% in deposits."
Analyst Q&A 11
Inflation and loan vs bond choices
Q (Daniel Vaz · Safra): Analyst asked for updated macro views on inflation and whether loan growth will pick up or if high-yield government bonds will keep the bank from lending more.
A: They see inflation around 29% and GDP about 2.6%. The bank wants to grow loans because lending is sustainable, but they also bought government bonds and will keep trading and accruing bonds while respecting internal prudency limits.
"I mean we are concentrated in trying to grow loans because that's the business we want to grow because it's the one that is sustainable." — Gonzalo Covaro
Election outlook and ROE target
Q (Ernesto María Gabilondo Márquez · BofA): Analyst asked how the election and macro outlook affect business sentiment, consumer indebtedness and financing opportunities, and also asked for current ROE, H2 outlook and medium-term ROE recovery timing.
A: They said elections can cause volatility but the Central Bank has stronger reserves so risks should be controlled. They see ROE for the year around 10% now (7% cumulative so far) and aim to end the year around 12%, with a medium-term target around 15% and long-term between 15% and 20%.
"Talking about returns, ROE, what we are seeing the ROE for the year is 10% around 10%." — Gonzalo Covaro
Deposit growth and funding for loans
Q (Daer Labarta · Goldman Sachs): Analyst asked whether the Q2 pickup in deposits, especially peso savings, is sustainable and how deposits will fund future loan growth in pesos and dollars.
A: They said deposits grew in Q2 and they expect total deposit growth of 10% this year. They raise deposits when lending picks up, have lagging time deposits, see some dollar deposit growth but less than past years, and will use dollar commercial paper if needed to fund dollar lending.
"As I said, we expect for this year a total growth of 10% in deposits." — Gonzalo Covaro
NIM sustainability with lower inflation
Q (Brian Flores · Citi): Analyst asked how to think about NIM pressure as loan yields fall versus support from lower funding costs and treasury positioning, and what drives ROE expansion (credit growth, lower credit costs, efficiency, or balance-sheet moves).
A: They expect margin pressure as inflation falls and see bank NIM around 16% for the full year, with more downside next year if inflation keeps falling. The main driver to expand ROE is credit growth, followed by lower cost of risk and continued efficiency gains.
"For the year, talking about the bank, I think we see margins at 16% for the year, for the full year." — Gonzalo Covaro
Cost of risk and NIM: bank vs group
Q (Yuri Fernandes · JPMorgan): Analyst asked if the 8.3% cost of risk guidance is an average or end-of-period and whether it refers to Banco Galicia or the whole group; and whether the NIM numbers are averages or end-of-period for bank vs group.
A: He clarified the metrics refer to the bank: the bank's cost of risk is expected to fall from 9.3% now to 8.3% for the full year. For margins he meant the bank at about 16% and the full group around 17% by year-end.
"So it's the 8.3% is just the bank, which is at 9.3% now." — Gonzalo Covaro
Retail loan growth and NPL drivers
Q (UBS): Analyst asked whether the restrictive approach in recent quarters will continue for retail, and which segments are driving NPLs and their trends.
A: They are working to grow retail personal loans carefully and expect personal loans to grow about 4% to 5% in the second half. NPLs are mainly driven by credit cards and personal loans, but short-term delinquency rates are improving and they expect bank NPLs to fall to 6.3% by year-end.
"For the second half, I would say that our portfolio of personal loans may grow 4% to 5%," — Gonzalo Covaro
Dollar loan limits and FX outlook
Q (Carlos Gomez-Lopez · HSBC): Analyst asked if there is an internal limit on dollar loans since the dollar share rose to about one-third, and what management expects for the FX rate end of this year and next.
A: They said they have strict dollar liquidity limits and target about 40% to 50% dollar liquidity, which they are meeting. Dollar loans are mostly short-term export financing and they have some room to grow plus access to dollar commercial paper; they expect FX around 1,600 at year-end and around 2,000 at the end of next year.
"So we are around 40% more or less liquidity in dollars that we are always 40% to 50% liquidity, and that we are achieving that complying with that." — Gonzalo Covaro
Naranja X NPLs and coverage recovery
Q (Pedro Farall · Latin): Analyst asked why Naranja X provisions fell despite NPLs rising, how new NPL formation is evolving, and whether coverage levels (94% Naranja X, 90% bank) are a floor or will return to 100%.
A: Naranja X is seeing a reduction in cost of risk in Q2 and they expect further reductions in H2; NPLs should fall to about 17% by year-end from near 20%. Short-term delinquency rates are improving and they expect coverage to recover to around 100%; the bank expects coverage to reach about 95% next quarter and closer to 100% at year-end.
"As you mentioned, we are already seeing a reduction in the cost of risk during the second quarter and for the second half, we still see further reductions on that metric." — Hernán Garcia (CFO)
Peso versus dollar loan growth split
Q (Lisandro Lloveras · one618): Analyst asked whether the 10% to 15% loan growth guidance implies real growth in peso loans or if most real growth will come from dollar loans.
A: They said peso loans will show very small real growth despite efforts to push them. Most of the growth in the 10% to 15% range is expected to come from commercial dollar lending.
"I mean peso loan will be small growth." — Gonzalo Covaro
Efficiency target and regulation outlook
Q (Ignacio Sniechowski · Invertir en Bolsa): Analyst asked where the bank's efficiency ratio will be by end-2026 and what the long-term target is after synergies, and also asked about possible regulatory changes (tax on lending, reserve requirements).
A: They target an efficiency ratio below 40% for 2026, aiming around 39%, and a longer-term target around 37% to 38% if margins allow. On regulation, they don't see reserve requirement cuts in the short term but expect tax reductions (like VAT on interest and other local taxes) could be on the agenda and would help lending; they also welcomed a new mortgage financing program announced that morning.
"I would say that for 2026, something below 40% for the bank, I would say, try to keep this like 39%, around 39%." — Gonzalo Covaro
Lending dollars to non-dollar companies
Q (Federico Cabelli · AdCap): Analyst asked if the bank plans to grow dollar lending to companies without dollar revenues after the regulator's announcement that allows this.
A: They said the announcement doesn't change much for them because they already used dollar commercial paper to lend to non-dollar producers. They will continue to approve such loans very carefully on a name-by-name basis and do not expect a large expansion because of prudency and devaluation risk.
"I mean for us, it doesn't change much because we already had availability of commercial paper -- dollar commercial paper issued." — Gonzalo Covaro