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Grupo Financiero Galicia's Q1 net income rises 40.7%

posted a 40.7%rise in its net income in the first quarter of 2016 on the back of strong resultsin its banking operations.

Net income cameto 1.35 billion Argentine pesos, up from the 958 million pesos earned in the year-agoperiod. Profit per share amounted to 1.04 pesos, up from 74 centavos a year ago.

The company'sfinancial income for the quarter reached 8.79 billion pesos, growing from 5.57 billionpesos in the first quarter of 2015. However, this was offset by a gain in financialexpenses, which jumped to 5.13 billion pesos from 2.80 billion pesos a year ago.

Net income fromservices rose to 2.19 billion pesos from 1.78 billion pesos year over year, whileincome from equity investments fell to 2 million pesos from 26 million pesos.

Provisions forloan losses, meanwhile, ticked to 618 million pesos from 591 million pesos.

The annualizedreturn on average assets reached 3.44%, while the return on average shareholder'sequity hit 35.58%.

The group'sbanking unit, Banco de Galicia y BuenosAires SA, contributed profits of 1.15 billion pesos, representing 85.01%of the group's net income. Meanwhile, SudamericanaHolding SA and GaliciaAdministradora de Fondos SA Sociedad Gerente de Fondos Comunes eachhad profit contributions of 166 million pesos and 30 million pesos,respectively.

For the bankingunit, strong profits were supported by a 26.4% expansion in operating income andpartially shaved off by a 36.5% rise in administrative expenses, which is tied toa provision on account of future salary increases recorded during the quarter, thecompany said.

As of May 9, US$1 was equivalent to 14.22 Argentinepesos.