Tear Sheet: Banco de Galicia y Buenos Aires S.A.U.

For the end of 2024, we expect profitability to benefit from the acquisition of HSBC, while we project solid performance in 2025, with ROE converging to 18%-20%, (from 28% annualized as of September 2024). We expect the Argentine banking system's profitability, including that of Banco Galicia, to remain affected by losses from net monetary exposure, although they will continue to decrease as inflation declines. Additionally, the dynamics of interest rates on assets and liabilities, and the evolution of government instrument yields, will have an impact due to their weighting in total assets. The stable outlook on Banco Galicia reflects the one on Argentina, along with lower risks in foreign exchange markets amid a modest recovery in Argentina's external liquidity. We

...*Unless otherwise noted, all ratings in this report are global scale ratings. S&P Global Ratings' credit ratings on the global scale are comparable across countries. S&P Global Ratings' credit ratings on a national scale are relative to obligors or obligations within that specific country. Issue and debt ratings could include debt guaranteed by another entity, and rated debt that an entity guarantees. WWW.STANDARDANDPOORS.COM/RATINGSXPRESS DECEMBER 18, 2024 4...

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