George Birch's questions to GRUPO FINANCIERO GALICIA (GGAL) leadership • Q2 2025
Question
George Birch sought confirmation that NPL formation was concentrated among new customers and asked about the origination vintage of the non-performing loans, particularly if they stemmed from the previous year's rapid loan growth.
Answer
CFO Gonzalo Fernández Covaro clarified that the drivers differed by product. For personal loans, the NPL spike was indeed from loans originated between March 2024 and March 2025, which included new, riskier customers. However, for credit cards, the performance issues were primarily among existing customers who began struggling with reduced disposable income in Q1 and Q2 of 2025.