Galicia Financial Group

GGAL

Market cap $5.34B

Argentine banks face a difficult year after an auspicious 2024 amid a sector paradigm shift after several decades financing public sector. Galicia reported a 63% Y/Y drop in profits in the first quarter, deepening the poor performance in Q1 2025 that prompted my downgrade to Hold. Positive factors such as the IMF agreement and the lifting of foreign exchange restrictions failed to boost banking results.

Argentina's credit penetration is far below its LATAM peers due to chronic inflation. If Argentina achieves catching up to its peers, credit could grow between three and seven times. Milei's administration is slashing the inflation rate, and loans are already growing 89% Y/Y when adjusted for inflation. The market overreacted to a provincial election, which, despite acting as a bellwether, it's not conclusive.

GGAL, ZTO and AMRZ have been added to the Zacks Rank #5 (Strong Sell) List on August 29, 2025.

Grupo Financiero Galicia S.A. (NASDAQ:GGAL ) Q2 2025 Earnings Call August 27, 2025 11:00 AM ET Company Participants Gonzalo Fernandez Covaro - Chief Financial Officer Pablo Eduardo Firvida - Investor Relations Officer Conference Call Participants Alonso Acuna Aramburú - Banco BTG Pactual S.A.

Argentina's market pullback offers a second chance, with GGAL trading at compelling valuations and poised for outsized gains if reforms hold. Galicia stands out due to its strong management, dominant market share, and readiness to compete with fintech disruptors like Revolut and Nubank. Structural upside is enormous: credit penetration is at almost historic lows (11% of GDP), and if Milei's reforms succeed, it could reach 30% to 40% in a few years.

After a historic rally, Argentine bank stocks face a correction driven by political noise and market rotation, not by a deterioration in fundamentals or financial performance. Valuation remains highly attractive across the sector, with low P/E and P/B ratios, strong ROE, and continued growth in earnings and operating cash flow projections for all four major banks.

Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.

BUENOS AIRES, June 10, 2025 (GLOBE NEWSWIRE) -- Grupo Financiero Galicia S.A. (Nasdaq: GGAL; Bolsas y Mercados Argentinos S.A./A3 Mercados S.A.: GGAL, the “Company”), one of Argentina's largest financial services groups, announced today the pricing of the previously announced underwritten secondary offering (the “Offering”) by HSBC Bank plc (the “Selling Shareholder”) of 11,721,449 American Depositary Shares (“ADSs”) representing 117,214,490 Class B ordinary shares of the Company, par value Ps.1.00 per share (“Class B ordinary shares”) at a public offering price of $54.25 per ADS. The ADSs are not authorized for public offering in Argentina by the Argentine National Securities Exchange Commision (Comisión Nacional de Valores – “CNV”) and are not being offered or sold publicly under the Argentine Capital Markets Law No. 26,831, as amended and complemented.  The documents related to the Offering have not been filed with, reviewed or authorized by the CNV, and therefore the CNV has not made any determination as to the truthfulness or completeness of those documents.

BUENOS AIRES, June 10, 2025 (GLOBE NEWSWIRE) --  Grupo Financiero Galicia S.A. (Nasdaq: GGAL; Bolsas y Mercados Argentinos S.A./A3 Mercados S.A.: GGAL, the “Company”), one of Argentina's largest financial services groups, announced today the launch of an underwritten secondary offering (the “Offering”) by HSBC Bank plc (the “Selling Shareholder”) of 11,721,449 American Depositary Shares (“ADSs”) representing 117,214,490 Class B ordinary shares of the Company, par value Ps.1.00 per share (“Class B ordinary shares”). The ADSs are not authorized for public offering in Argentina by the Argentine National Securities Exchange Commision (Comisión Nacional de Valores – “CNV”) and they may not be offered or sold publicly under the Argentine Capital Markets Law No. 26,831, as amended and complemented.  The documents related to the Offering have not been filed with, reviewed or authorized by the CNV, and therefore the CNV has not made any determination as to the truthfulness or completeness of those documents.

Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.