Galicia Reports 91% Net Income Drop, 14.3% Retail NPLs and ARS 84 B Q4 Loss
Grupo Financiero Galicia booked a 91% plunge in 2025 net income to ARS 196 billion as retail NPLs surged to 14.3% and Q4 loss hit ARS 84 billion. Management targets 25% loan growth, 10–11% ROE, ARS 190 billion dividends with 23% inflation and 3.7% GDP growth forecasts for 2026.
1. Sharp Profit Decline in 2025
Grupo Financiero Galicia’s net income fell 91% to ARS 196 billion in 2025, driven by a ARS 70 billion loss at Banco Galicia that more than offset ARS 127 billion from asset management, ARS 59 billion from Naranja X and ARS 40 billion from Galicia Seguros.
2. Asset Quality Deterioration
Retail non-performing loans surged to 14.3% by year-end, prompting provisions to rise 220% year-over-year and resulting in a Q4 loss of ARS 84 billion; overall NPL ratio climbed to 6.9% with coverage at 97.4%.
3. 2026 Targets and Dividends
Management forecasts stabilization with 23% inflation and 3.7% GDP growth, aims for 25% loan growth, a 10–11% ROE, 10–11% expense reduction (ex-one-offs), and has proposed ARS 190 billion in dividends pending central bank approval.