Question · Q3 2025
Camila Azevedo requested a clearer view on Grupo Financiero Galicia's asset quality dynamics during the quarter, specifically asking for expected NPL levels by the end of 2026 and the comfortable range for coverage ratios going forward.
Answer
Gonzalo Fernández Covaro (CFO, Grupo Financiero Galicia) clarified that NPL improvement is expected by the end of 2026, not this year, with NPLs projected to be in the 4-4.5% range. He stated that the current coverage ratio is 101.5% and is expected to reach 110% by the end of next year. He explained that coverage dynamics involve booking upfront reserves when the loan book grows, which are then utilized, and that the bank is comfortable with its current coverage level.
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