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BANCO DE GALICIA REPORTS RESULTS FOR THE FIRST QUARTER ENDED SEPT. 30, 1993

 BUENOS AIRES, Argentina, Nov. 19 /PRNewswire/ -- Banco de Galicia y Buenos Aires, listed on the Buenos Aires Stock Exchange (BASE) and with ADSs quoted on NASDAQ under "BGALY," presented to the BASE its consolidated financial statements for its first quarter ended Sept. 30, 1993.
 As announced on Nov. 9, net income for the first quarter amounted to Ps.20.2 million, showing an 85.7 percent increase from Ps.10.9 million reported in the same period in 1992.
 Net income continues to grow primarily as a result of the significant increase in earning assets, in the income from non-financial services and the improvement in the efficiency ratios of the bank.
 Level of Activity
 -- Total assets increased to Ps.3,792.7 million from Ps.2,177.3 million in the same quarter of the previous fiscal year, an increase of 74.2 percent.
 -- Total deposits increased by 70.8 percent from the same period of fiscal 1992 to reach Ps.2,456.5 million.
 -- Loans grew by 56.5 percent to Ps.2,439.1 million from Ps.1,558.4 at Sept. 30, 1992.
 -- The portfolio of government securities increased by Ps.193.9 million as a result of favorable market conditions and with the purpose of maintaining an adequate level of liquid assets.
 -- Negotiable obligations (bonds and commercial paper) outstanding as of Sept. 30, 1993 reached Ps.242.0 million, 25.4 percent higher than in the same quarter of the previous year.
 -- As of July 30, 1993 (latest official data released), the bank's market share in deposits and loans were 4.69 percent and 4.67 percent, respectively, up from 4.11 percent and 3.59 percent, respectively, at Sept. 30, 1992.
 Income Performance
 -- Return on average assets was 2.3 percent and return on average shareholders' equity was 19.4 percent both on an annual basis, representing an increase of 11.9 percent and 14.4 percent, respectively.
 This performance was achieved in spite of the decrease in financial margins which was compensated by the increase in the volume of earnings assets and in the income from non-financial services.
 -- The improvement in efficiency ratios is measured by the growth in the ratio of income per administrative expense unit which increased from 122.2 percent as of Sept. 30, 1992 to 146.0 percent in this quarter of 1993.
 -- Financial net income amounted to Ps.67.3 million, 75.7 percent higher than in the first quarter of the prior fiscal year.
 -- Net income from non-financial services increased by 28.9 percent reaching Ps.44.3 million as of the first quarter compared to Ps.34.4 million as of the same quarter in 1993.
 -- Administrative expenses reached Ps.76.5 million, 28.5 percent higher than the first quarter in the previous fiscal year, less than the growth of income, both from financial and non-financial services.
 -- Other income increased 131.3 percent, or Ps.6.1 million, as a result of a decrease in different types of provisions established in prior years. As a result, the bank increased the general allowance for loan losses as discussed in the next paragraphs.
 Asset Quality
 -- Classified loans as a percentage of credit, excluding interbank loans, reached 2.98 percent as of Sept. 30, 1993.
 -- As a consequence, the allowance for loan losses was increased to represent 2.52 percent of loans excluding interbank loans.
 -- The coverage ratio, which is the allowance for loan losses, as a percentage of classified loans is 84.7 percent.
 -- The general allowance for loan losses reached 1.05 percent of normal loans as of Sept. 30, 1993. The bank is substantially over the Central Bank requirement which was 0.4166 percent of normal loans for the same period.
 Selected Financial Information
 Banco de Galicia, which listed its American Depositary Receipts on NASDAQ in June 1993, is one of the two largest private banks in Argentina and the first Latin American private commercial bank to make a fully registered stock offering in the United States. The bank is engaged principally in commercial banking, providing general banking services to individuals, small and medium-sized companies, and large corporations.
 Following is a table which summarizes selected financial information for the last three fiscal years.
 BANCO DE GALICIA Y BUENOS AIRES S.A.
 Consolidated Financial Statements
 (including controlled financial entities)
 (in thousands of U.S. dollars)
 Quarter ended Sept. 30, 1993
 As compared with the same period of the previous year.
 1993 1992
 ASSETS
 Cash and due from banks 672,735 $289,309
 Government securities 267,684 74,041
 Loans 2,439,112 1,558,417
 Other Receivables resulting from
 financial brokerage 198,568 62,822
 Assets under financial leases 2,323 942
 Equity in other companies 37,513 23,081
 Miscellaneous receivables 11,381 18,698
 Bank premises and equipment 124,664 117,366
 Miscellaneous assets 15,849 12,999
 Intangible assets 21,670 18,785
 Unallocatable items 1,184 872
 TOTAL 3,792,683 2,177,332
 LIABILITIES AND SHAREHOLDERS' EQUITY
 Deposits 2,456,528 1,438,013
 Other liabilities resulting from
 financial brokerage 827,063 424,212
 Sundry liabilities 84,337 48,834
 Provisions 7,820 10,832
 Unallocatable items 1,864 443
 Shareholders' equity 415,071 254,998
 TOTAL 3,792,683 2,177,332
 INCOME STATEMENT
 Financial income 118,853 75,935
 Financial expenditure 47,188 32,982
 Provision for loan losses 15,862 4,193
 Fee income 52,233 41,294
 Expenditures for services 7,897 6,901
 Monetary gain (loss) from
 financial brokerage (2,126) (4,616)
 Administrative Expenses 78,489 59,504
 Monetary gain (loss) from
 operating expenses 173 722
 Miscellaneous income 10,773 4,659
 Miscellaneous losses 3,167 3,648
 Monetary gain (loss) from other
 transactions 24 105
 Income tax 6,940 ---
 Consolidated final net income 20,187 10,871
 BANCO DE GALICIA: SELECTED INFORMATION CONSOLIDATED DATA(A)
 In thousands of constant pesos at Sept. 30, 1993
 Three Months Ended
 As of Sept. 30
 1993 1992
 CONSOLIDATED INCOME STATEMENT
 Net financial income 67,339 38,337
 Provision for loan losses 15,862 4,193
 Income from services, net 44,336 34,393
 Administrative expenses 76,489 59,504
 Net income 20,187 10,871
 Net income per share $0.58(1) $0.37(1)
 Net income per ADS $2.32(1) $1.48(1)
 CONSOLIDATED BALANCE SHEET
 Government securities 267,684 74,041
 Loans, net 2,439,112 1,558,417
 Total assets 3,792,683 2,177,332
 Deposits 2,456,528 1,438,013
 Total shareholders' equity 415,071 254,998
 MARKET SHARE (3)
 TOTAL DEPOSITS 4.89 pct(4) 4.11 pct
 -In pesos 3.39 pct(4) 3.10 pct
 -In US dollars 6.21 pct(4) 5.29 pct
 TOTAL LOANS 4.67 pct(4) 3.59 pct
 -In pesos 3.49 pct(4) 2.81 pct
 -In US dollars 5.62 pct(4) 4.21 pct
 PROFITABILITY AND EFFICIENCY
 Financial margin(5) 9.95 pct(1) 10.07 pct(1)
 Return on average assets 2.27 pct(1) 2.03 pct(1)
 Return on average shareholders'
 equity 19.40 pct(1) 16.96 pct(1)
 Net fee income as a percent
 of operating income(6) 39.70 pct 47.29 pct
 Net fee income as a percent
 of administ. expenses 57.95 pct 57.80 pct
 Total income as a percent
 of administ. expenses (7) 146.00 pct 122.23 pct
 CAPITAL
 Shareholders' equity as a percent
 of total assets 10.94 pct 11.71 pct
 Total liabilities as a multiple
 of shareholders' equity 8.14 pct 7.54 pct
 LIQUIDITY:
 Cash and due from banks as a pct.
 of deposits 27.39 20.12
 Liquid assets as a pct. of
 deposits (8) 38.28 25.27
 Loans as a pct. of total assets 64.31 71.57
 CREDIT QUALITY:
 Allowance for loan losses as a pct.
 of loans (excluding interbank loans) 2.52 1.69
 Classified loans as a pct. of loans (9)
 (excluding interbank loans) 2.98 1.56
 Allowance for loan losses as a pct.
 of classified loans 84.71 108.43
 PHYSICAL DATA (number):
 PERSONNEL 4,197 3,978
 - Banco de Galicia 4,150 3,931
 - Casa Bancaria 47 47
 BRANCHES 175 172
 - Banco de Galicia 170 167
 - Casa Bancaria 5 5
 CUSTOMER ACCOUNTS 364,595 349,770
 - Banco de Galicia 353,545 339,732
 - Casa Bancaria 11,050 10,038
 INFLATION AND EXCHANGE RATE
 (variation) (10) (In percents):
 Retail price index 1.16 4.32
 Wholesale price index 0.34 2.27
 Exchange rate (Peso/US dollar) 0.10 0.03
 Fiscal Years Ended
 As of June 30
 Percent
 1993 1992 1991 Growth
 9/92-9/93
 CONSOLIDATED INCOME STATEMENT
 Net financial income 199,574 143,768 109,052 75.65
 Provision for loan losses 35,264 20,426 8,842 278.30
 Income from services, net 148,953 117,842 66,400 28.91
 Administrative expenses 255,251 211,546 174,133 28.54
 Net income 57,303 48,243 5,163 85.70
 Net income per share $0.49(2) $0.39 $0.04 56.76
 Net income per ADS $1.95(2) 1.57 $0.18 56.76
 CONSOLIDATED BALANCE SHEET
 Government securities 124,811 136,030 208,080 261.53
 Loans, net 2,225,395 1,302,525 540,438 58.51
 Total assets 3,242,088 1,916,559 1,145,469 74.19
 Deposits 2,034,077 1,257,717 695,837 70.83
 Total shareholders' equity 405,213 252,082 250,995 82.77
 MARKET SHARE (3)
 TOTAL DEPOSITS 4.54 pct 4.08 pct 3.22 pct 14.11
 -In pesos 3.50 pct 2.99 pct 2.70 pct 9.35
 -In US dollars 5.76 pct 5.36 pct 3.80 pct 17.39
 TOTAL LOANS 4.12 pct 3.24 pct 1.04 pct 30.08
 -In pesos 3.05 pct 2.29 pct 0.46 pct 24.20
 -In US dollars 4.95 pct 4.02 pct 1.94 pct 33.49
 PROFITABILITY AND EFFICIENCY
 Financial margin(5) 13.15 pct 17.07 pct 31.83 pct (1.19)
 Return on average assets 2.31 pct 3.07 pct 0.82 pct 11.87
 Return on average shareholders'
 equity 19.20 pct 20.20 pct 2.57 pct 14.40
 Net fee income as a percent
 of operating income(6) 42.74 pct 45.00 pct 38.54 pct (16.05)
 Net fee income as a percent
 of administ. expenses 58.36 pct 55.61 pct 39.28 pct 0.28
 Total income as a percent
 of administ. expenses (7) 136.54 pct 123.57 pct 101.92 pct 19.45
 CAPITAL
 Shareholders' equity as a percent
 of total assets 12.50 pct 13.15 pct 17.97 pct (6.58)
 Total liabilities as a multiple
 of shareholders' equity 7.00 pct 6.60 pct 4.58 pct 7.96
 LIQUIDITY:
 Cash and due from banks as
 a pct. of deposits 21.37 18.80 21.92 38.13
 Liquid assets as a pct. of
 deposits (8) 27.51 29.73 52.43 51.48
 Loans as a pct. of total
 assets 68.64 67.96 47.18 (10.14)
 CREDIT QUALITY:
 Allowance for loan losses
 as a pct. of loans
 (excluding interbank loans) 2.33 1.99 2.15 49.11
 Classified loans as a pct.
 of loans (9) (excluding
 interbank loans) 2.58 2.35 3.40 91.03
 Allowance for loan losses
 as a pct. of classified
 loans 90.02 84.60 63.11 (21.88)
 PHYSICAL DATA (number):
 PERSONNEL 4,171 3,899 3,811 5.51
 - Banco de Galicia 4,120 3,654 3,770 5.57
 - Casa Bancaria 51 45 41 0.00
 BRANCHES 175 171 177 1.74
 - Banco de Galicia 170 186 172 1.80
 - Casa Bancaria 5 5 5 0.00
 CUSTOMER ACCOUNTS 337,472 309,918 271,418 4.24
 - Banco de Galicia 326,630 299,906 261,191 4.07
 - Casa Bancaria 10,842 10,012 10,227 10.08
 INFLATION AND EXCHANGE RATE
 (variation) (10) (In percents):
 Retail price index 12.27 19.62 200.65 (73.15)
 Wholesale price index 1.96 2.55 117.49 (85.02)
 Exchange rate
 (Peso/US dollar) 0.8 (0.8) 89.06 230.66
 (A) -- Banco de Galicia y Buenos Aires and Galicia y Buenos Aires Casa Bancaria.
 (1) -- These figures have been annualized.
 (2) -- According to the number of shares outstanding before the stock offering of June 1993.
 (3) -- Banco de Galicia only in relation with the Argentine market. Source: Central Bank of the Argentine Republic.
 (4) -- As of July 31, 1993, latest information available on total activity at the financial system.
 (5) -- Net financial income divided by average earnings assets.
 (6) -- Income from services, net, divided by the sum of net financial income plus income from services, net.
 (7) -- Net financial income plus income from services, net divided by administrative expenses.
 (8) -- Liquid assets include cash, due from banks and government securities.
 (9) -- Classified loans are defined as those loans in the categories of "risk of insolvency," "judicial proceeding" and "bankruptor in liquidation."
 (10) -- Sources: National Bureau of Statistic and Census and Central Bank of the Argentine Republic.
 -0- 11/19/93
 /CONTACT: Sergio Grinenco, 011-541-329-6253/6254, or Hector Arzeno, 212-906-3701, both of Banco de Galicia y Buenos Aires; or Felicia Vonella of Dewe Rogerson Inc., 212-688-6840/
 (BGALY) CO: Banco de Galicia y Buenos Aires ST: IN: FIN SU: ERN


CK-MP -- NY054 -- 6608 11/19/93 14:52 EST
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