Alanso Garcia's questions to GRUPO FINANCIERO GALICIA (GGAL) leadership • Q3 2019
Question
Alanso Garcia from Crédit Suisse asked whether the inflation adjustment for taxes is final or if there's a risk of reversal. He also questioned the bank's appetite for further reducing its exposure to central bank Leliq notes after the significant decline in Q3.
Answer
Pablo Firvida, Institutional Relations Manager, confirmed the tax adjustment for inflation is based on current law and is not expected to change, projecting a similar 16% effective tax rate for Q4. Regarding Leliqs, he explained the bank's priority is high liquidity, which is why it split its central bank exposure between Leliqs and shorter-term repo transactions, holding roughly MXN45 billion in each.