Grupo Financiero Galicia(GGAL) - 2024 Q3 - Quarterly Report

Financial Position - Total assets decreased to Ps. 20,593,625,497 as of December 31, 2023, from Ps. 21,142,164,324 in 2022, representing a decline of approximately 2.6%[27] - Total liabilities decreased from Ps. 17,320,427,795 in 2022 to Ps. 16,527,246,046 in 2023, a reduction of approximately 4.6%[29] - As of December 31, 2023, total shareholders' equity attributable to the parent company's owners was Ps. 4,066,200,588, an increase from Ps. 3,821,736,410 as of December 31, 2022, representing a growth of approximately 6.4%[37] - The total shareholders' equity, including non-controlling interests, reached Ps. 4,066,379,451 as of December 31, 2023[37] Cash and Liquidity - Cash and due from banks increased to Ps. 4,023,323,415 in 2023, up from Ps. 2,809,407,083 in 2022, marking a growth of approximately 43%[27] - The company's cash position improved, with cash alone reaching Ps. 2,228,848,927 in 2023, compared to Ps. 1,083,368,511 in 2022, an increase of approximately 106.6%[27] - Cash dividends distributed amounted to Ps. 438,320,348, reflecting a significant return to shareholders[37] - Cash and cash equivalents at the end of 2023 were Ps. 6,586.3 million, down from Ps. 8,328.4 million at the end of 2022[46] Income and Profitability - Net income for the year increased significantly to Ps. 679,674,788 in 2023, compared to Ps. 304,906,143 in 2022, representing a growth of approximately 122%[31] - Interest income surged to Ps. 9,583,748,697 in 2023, up from Ps. 4,500,238,666 in 2022, marking an increase of about 113%[31] - Net operating income rose to Ps. 6,763,273,963 in 2023, compared to Ps. 4,275,571,978 in 2022, reflecting a growth of approximately 58%[31] - Total comprehensive income for the year reached Ps. 682,779,448 in 2023, compared to Ps. 298,876,602 in 2022, indicating a growth of approximately 128%[35] Credit and Risk Management - The expected credit loss allowance was Ps. 138,300,714 thousand as of December 31, 2023, showing a significant reduction from Ps. 434,141,579 in the previous year[20] - The total expected credit loss allowance was assessed based on macroeconomic scenarios, highlighting the company's proactive approach to risk management[20] - Expected credit loss allowance increased to Ps. 384.4 million in 2023 from Ps. 329.2 million in 2022, reflecting a rise in credit risk[45] Expenses and Costs - Personnel expenses rose to Ps. 708,475,735 in 2023, compared to Ps. 608,224,941 in 2022, reflecting an increase of approximately 16.5%[31] - Loss on Net Monetary Position rose sharply to Ps. 3,061.0 million in 2023 compared to Ps. 1,716.1 million in 2022, indicating increased inflationary pressures[45] Compliance and Reporting - The company maintained effective internal control over financial reporting as of December 31, 2023, according to the independent auditor's opinion[12] - The consolidated financial statements were prepared in accordance with IFRS Accounting Standards, reflecting the company's commitment to transparency and compliance[12] Investments and Financial Instruments - The company reported a significant increase in investments in equity instruments, rising to Ps. 19,427,399 in 2023 from Ps. 14,055,309 in 2022, a growth of approximately 38.5%[27] - The company reported a significant increase in net income from financial instruments measured at fair value through profit or loss, totaling Ps. 552,125,644 in 2023, down from Ps. 2,122,455,994 in 2022[31] Accounting Standards and Policies - The Group has adopted IFRS 17 'Insurance Contracts' effective January 1, 2023, with no material impact on financial statements[66] - The implementation of IAS 29 for hyperinflationary economies has been applied for all years presented, ensuring financial statements are restated in current measurement units[59] - The Group has determined that the application of new accounting standards and amendments will not have a significant impact on its financial statements[67] Shareholder Equity and Dividends - The company’s retained deficit increased slightly from Ps. (1,097,146,058) in 2022 to Ps. (1,115,275,003) in 2023[29] - Other comprehensive income for the year was Ps. 3,109,730, which includes an increase in accumulated profit from financial instruments at fair value through OCI[37] - The Group recognizes dividends as a liability in the consolidated financial statements in the year they are approved by shareholders[190]