he Galicia Financial Group It presented its latest balance sheet with huge losses, in a context in which the banking system is facing a painful blow due to the disarmament of the central bank. LEFIs In the middle of the year, a shock Liquidityrise lace And the increase in Uncollectibility.
In this scenario, In the case of Grupo Financiero Galicia, the cost of integration with it HSBC. Therefore, investors are now wondering whether now is the time to do so Buy, hold or sell shares of this company.
In it Balance of the third quarter of 2025, the Galicia Group lost $87.710 million In that period; The main loss was for the bank, which achieved a negative result of $103.894 million.
We must remember that in In the same period last year, profits amounted to $243.849 million.
“The financial margin was affected by changes in reserve regulations and the significant increase in interest rates, which affected the cost of financing.” Details of this company are in the report submitted to National Securities Commission (CNV).
To add that, “In addition, non-recurring expenses associated with the integration of HSBC’s business in Argentina were recorded (Mostly restructuring expenses) amounting to $105.343 million.”
The tangible thing is that the market expected this situation, and… This was reflected on Tuesday in the stock marketBecause actions Grupo Financiero Galicia (GGAL) stock rose more than 6% on the Merval ByMA index and advanced almost 5% in dollar terms on Wall Street.
the Grupo Galicia’s third-quarter numbers are not encouraging, but must be put into context. Firstly, the high cost of integrating with HSBC is not an amount that can be repeated. Likewise, bad debt charges, caused by a sudden increase in interest rates in the context of a slowing economy, should reach a maximum. Ignacio Rosenfeld, Market analyst in international companies, iProfessional.
It also highlights that it must be kept in mind that The impact resulting from price pressure and high reserve requirements, “It was very sudden and affected practically all the players.”
to Esteban CastroEconomist and CEO of Inv.est, despite the negative balance presented by Banco Galicia, “A large portion of the weak numbers have already been discounted by the market. The loss is largely explained by unusual factors, such as the absorption of HSBC Argentina, and a macroeconomic environment that remains very restrictive for banks, such as rising interest rates, difficult reserve requirements, and a default rate that is rising.
Therefore, he adds that although these elements put strong pressure on the current results, they are… “It does not mean a structural deterioration of the business since Galicia remains one of the largest banks in the Argentine financial system, which gives it room to recover if the context improves.” Castro concludes.
In this he agrees Leonardo GuidiAnalyst AN Conectar Bursátil: “The market expected a bad balance, especially considering that it shows the results of the quarter of the Buenos Aires provincial elections and the national elections. We must always remember that Balance sheets show us the past, while stocks move excluding future scenarios, So I’m not at all surprised by the reaction of US bank stocks.”
Galicia shares: buy, sell or hold
Now, regarding what to do about the actions Galicia Financial Group (GGAL)And if it is appropriate Buy, sell or hold, Analysts he consulted iProfessional Agree to get Conservative attitude when investing in sector assets.
“An old principle says that all information is already in the prices. I support reducing exposure in the banking sector. This does not mean selling the entire position. The banking sector is expected to start recovering from the next quarter. Along with the recovery of the economy, consumption and loans. Banks, through their financial intermediation, are the first to receive the benefits of an expanding economy.” Juan DiedrichCapital Markets Analyst, iProfessional.
Guidi then adds, by emphasizing that from now on, the Banks’ balance sheets will be more important and will better reflect the fundamentals of the business Thanks to having a non-election year ahead of us in which we will be able to largely remove the political engine from the balance sheets and see in a “cleaner” way how the banks’ business develops and, above all, their returns on equity, which should not only return to positive values, but should also be higher than the cost of equity.
He even explains it “All Argentine banks rise more than 5% on Wall Street, Because they expect much better results next year.
Regarding Grupo Financiero Galicia, Guidi It recommends “buy and hold throughout 2026.”
For Rosenfeld, The most conservative “is to wait and see in the next quarter whether the damage has been controlled.” Especially the “bad debt fees” and the cost of integration with HSBC, in order to make the decision. In continuation, if the new direction of the Argentine economy is eventually confirmed, and businesses begin to rely more on growth in credit volume and not so much on interest rate spreads, this will benefit all market players.
Finally, Castro’s position is… “Don’t panic sell, don’t buy aggressively, but hold your position And be selective when it comes to adding exposure.
Their arguments are so Today, the stock represents “risk but also potential value if credit rebounds, prices normalize, and the economy shows clearer signs of stabilization. So, for risk-tolerant investors, it may be reasonable to evaluate small tactical buys; for the rest, the wiser strategy is to wait for confirmations of improvement.” Before expanding positions,” concludes Castro iProfessional.
This Tuesday shares Grupo Financiero Galicia (GGAL) on Wall Street was around $49.
According to Bloomberg, before the balance sheet was published, analysts from Santander Group, Dawn Capital, and Goldman Sachs Target prices have been set for ADR Galicia of US$103, US$72 and US$58, respectively. That is, expectations of increases are considered, in relation to the current value that may reach Between 18% to 110% in dollars.