The Banco Galicia segment obtained a profit of $7,476 million, while the other relevant business for the company, Tarjeta Naranja, ended the quarter reaching $1,140 million. The strong slowdown experienced by Tarjeta Naranja should be highlighted, as a result of higher allowances for bad debts and the accounting adjustment for inflation. Despite this, it achieved a net result in the fourth quarter of the last year of $8,991 million, doubling the same month of 2020.
According to a calculation made by Bloomberg, at yesterday’s official wholesale exchange rate, Galicia’s net income during the last financial year was equivalent to US$309 million. To the dollar “counted with liquid”, it would be US$155 million.
In a context of negative real rates and credit contraction in real terms, the banking group suffered a 14% drop in its loan portfolio: it went from $710,022 million in 2020 to $613,271 million in 2021.
The financial group does not stop its loss of profits. In the fourth quarter, the group’s market share fell by 85 basis points to 12.16% of total private sector loans in the country.
Another cause derives from the fact that in the last year the spread between the rates of the loans offered by Galicia and the returns on the deposits it pays to its clients, one of the main sources of income in banking activity, narrowed. In this way, according to Bloomberg, the financial margin fell from 19.34% in 2020 to 16.84%.
A positive aspect to highlight has to do with Naranja X, which reported the best result of the group with net profits 128% above 2020.
Source: Ambito
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