Thank you. Good morning, and welcome to this conference call.

According to the monthly indicator for economic activity, EMAE, the Argentine economy recorded a 5% year-over-year increase during September. In year-to-date terms, the economic expansion reached 5.2%.

During the third quarter of 2025, the primary surplus reached 0.5% of GDP, and an overall surplus of 0.1% of GDP was recorded. This result was explained by revenues increasing by 32.8% year-over-year, whereas primary spending rose 30.6%.

During the first 10 months of 2025, the primary balance stood at 1.4%, while the financial balance amounted to 0.5% of GDP. The national consumer price index accumulated a 6% increase during the third quarter of 2025 and a 24.8% year-to-date increase as of October.

After four consecutive months below the 2% mark, headline inflation was 2.1% in September and 2.3% in October, accumulating 31.3% in the last 12 months, the lowest level since July 2018. The third quarter was marked by high volatility in the months leading up to the midterm elections.

The exchange rate came under pressure, at times nearing the upper limit of the floating band, which prompted the central bank to step in with foreign exchange sales. Nonetheless, the exchange rate averaged 1,400 peso per dollar in September 2025, a 15.6% devaluation compared to June 2025.

Meanwhile, peso-denominated interest rates saw sharp swings, reflecting increased uncertainty and liquidity shifts. In fact, the average rate on peso-denominated private sector time deposits for up to 59 days averaged 48.7% in September 2025, up 16.5 percentage points from June 2025 levels.

Private sector deposits in pesos averaged 94.1 trillion pesos in September, increasing by 5.6% during the quarter and 53% in the last 12 months. Time deposits in pesos rose 13.1% during the quarter and 76.3% in the year.

Peso-denominated transactional deposits decreased 2.4% during the third quarter, but increased 31.5% in year-over-year terms. Private sector dollar-denominated deposits amounted to $32.6 billion in September 2025, increasing 7.2% during the quarter and rising 38.9% in the last 12 months.

Peso-denominated loans to the private sector averaged 79.3 trillion pesos in September, showing a 9.7% quarterly increase and a 105.4% year-over-year. Private sector dollar-denominated loans amounted to $18.3 billion, recording a 15.8% quarterly growth and a 153.4% annual increase.

Turning now to Grupo Financiero Galicia, net loss for the quarter amounted to 87.7 billion pesos, due to losses from Banco Galicia for 104 billion pesos, from Naranja X for 6 billion pesos, and from Galicia Seguros for 12 billion pesos, partially offset by the profits from Galicia Asset Management for 25 billion pesos. This loss represented a -0.8% annualized return on average assets and a -4.7% return on average shareholders' equity, while accumulated annualized figures for the fiscal year reached 0.9% and 4.7%, respectively.

The quarter includes extraordinary restructuring expenses associated with the merger with HSBC for 105.3 billion pesos, net of income tax. The quarter ROE without the extraordinary expenses would have been 1%, and the 9 months—9 months ROE, 6.9%.

The result from Banco Galicia included 101.1 billion pesos of extraordinary expenses, and in addition, were negatively affected by the increase in the cost of risk, associated with the growth of the loan book, and the increase in the non-performing loans in the retail segment, particularly in personal loans and credit card financing, together with a decrease of financial margin, associated to an environment of high interest rates and a regulatory increase of reserve requirements. It is also worth noting that most of the comparisons will be made against the second quarter of this fiscal year, as figures for the third quarter of 2024 do not include information about the acquired business of the former HSBC Argentina.

Net operating income decreased 23%, as net interest income decreased 10%, net results from financial instruments were down 89%, and loan loss provision increased 26%, which were partially offset by 9% growth of net fee income and a 12% increased profits from gold and FX quotation differences. Average interest-earning assets reached 22.7 trillion pesos, 8% higher than in the previous quarter, primarily due to the increase of the average portfolio of loans, 5% in pesos and 27% in dollars.

In the same period, its yield decreased 259 basis points, reaching 30.1%. Interest-bearing liabilities increased 27% from June 2025, amounting to 19.9 trillion pesos, primarily due to the increase of time deposits in pesos and of saving accounts in foreign currency.

During this period, its cost increased 88 basis points to 16.5%. Net interest income decreased 10% when compared to the second quarter, because of a 35% increase in interest expenses, due to a 36% higher interest rate on time deposits, partially offset by a 7% increase of interest income, mainly due to a 12% higher interest on loans and other financings to the private sector.

Net fee income increased 9% from the previous quarter, due to a 6% higher income from credit card fees and of 19% from fees on deposits. Net income from financial instruments decreased 89%, due to an 88% lower result from government securities.

Gains from FX quotation differences were 12% higher from the year-ago quarter, including the result from foreign currency trading following the lifting of exchange restrictions. Other operating income increased 11% in the quarter, mainly due to the 45% increase in other income, primarily corresponding to credits recovered.

Provision for loan losses increased 26%, due to the growth of the financing portfolio and to an increase in delinquency that is limited to personal loans and credit cards financing to individuals in pesos. Personnel expenses were 83% higher than in the second quarter, due to the voluntary retirement program recorded in connection with the restructuring plan following the acquisition of HSBC's business in Argentina.

Administrative expenses were 11% lower than in the previous quarter, due to a 32% decrease of expenses for maintenance and repair of goods and IT, and to 14% decrease of higher administrative services. Other operating expenses increased 5%, due to a 7% higher turnover tax.

Results from the net monetary position decreased 9% from the second quarter, following the declining evolution of inflation. The income tax charge was positive as the pre-tax net income was a loss.

The bank's financing to the private sector reached 20.4 trillion pesos at the end of the quarter, up 14% in the last 3 months, with peso financing increasing by 5% and dollar-denominated financing growing 35%. Net exposure to the public sector was 3% down comparing with the previous quarter, primarily due to a 38% decrease in government securities in pesos measured at fair value through OCI, offset by an increase in government securities in pesos at amortized cost.

Deposits reached 22.9 trillion pesos, 8% higher than a quarter before, mainly due to a 26% increase in dollar-denominated deposits, mainly time deposits that were up 72%. The bank's estimated market share of loans to the private sector was 14.8%, 30 basis points higher than at the end of the previous quarter, and the market share of deposits from the private sector was 16.4%, 40 basis points higher than in the second quarter of 2025.

The bank's liquid assets represented 94.5% of transactional deposits and 59.2% of total deposits, compared to 94.3% and 65.2%, respectively, from a quarter before. As regards asset quality, the ratio of non-performing loans to total financing ended the quarter at 5.8%, recording a 140 basis points deterioration as compared to the 4.4% of the second quarter, and as I mentioned before, the deterioration is limited to the personal loans and credit card financing portfolios.

At the same time, the coverage with allowances reached 105%, down 16.4 percentage points from the 117.9% recorded a quarter ago. As of September 2025, the bank's total regulatory capital ratio reached 22.1%, decreasing 160 basis points from the end of the second quarter, while the tier 1 ratio was 21.8%, down 140 basis points during the same period.

In summary, the third quarter was marked by high political, FX, and monetary volatility, and negatively affected margins and asset quality, and in addition, the results were affected by a very high one-time expense due to a restructuring of the merged banks. Despite this, Grupo Financiero Galicia was able to keep liquidity and solvency metrics at healthy levels, and we expect an improvement in profitability during the fourth quarter and next year.

Now, Gonzalo Fernández Covaro will make some additional remarks.

Hi, everyone. Continue with what we see for the future, no?

Regarding how we see the rest of the year, October continued with low margins due to the high interest rate that we saw in the third quarter, but we are already seeing a fast improvement in margins in November. We are already really seeing margins at same level than second quarter or the first half of the year in average in November, and we expect the same for December.

Portfolio performance still needs some time to get back on track, we'll still see a deterioration in the fourth quarter at a slower trend than before, but still some. Overall, bank will be better, will improve returns, mainly due to the margins improvement.

Naranja X will have some headwinds in terms of portfolio performance. With this mix, we are seeing the ROE for the full year 2025 around 4%, the reported one, and if we exclude the non-recurring integration costs that we mainly booked in the third quarter, we should be around 6%.

Talking about 2026, we are expecting an ROE in the low teens range, I would say between 11% and 12%. Of course, a lot of moving targets for next year, we'll be updating this guidance in future quarters, but this is our base case scenario to be around 11% to 12%.

Margins, we'll see improving them in the first months of the year, together what we are seeing in November, December. Then some kind of slight reduction as a consequence of the rate reduction, but not really high the reduction.

We still see healthy margins next year, I would say the levels of the second quarter. NPLs, we expect a peak on NPLs in March of next year, but then improving as the good portfolio that we are originating is gaining weight in our mix, and we will end the year with NPLs better than the run rate that we are having now.

Regarding costs, we are also seeing a reduction year-over-year in costs because of all the restructuring we have done and you saw the restructuring costs we booked in the third quarter, and that generated a 1,000 heads reduction in the group quarter-over-quarter, and that's if we add up all the year, we have a headcount reduction of 2,000 heads for the year. That is of course generating cost reduction for next year.

We are seeing already fourth quarter of next year, our projections shows a fourth quarter of next year ROE run rate already at 15% level, so that put us with a solid base to start '27 and deliver ROEs above 15% as is the target ROE that we are aiming for the longer future. With that, we are also open for any questions you may have.

Hi, Gonzalo. Hi, Pablo.

First time being here. Thank you for the opportunity.

I'm looking at your capital ratio of 21% at the group level and it was down 120 bps from the second quarter. I'm just wondering if you said that your cohorts, new cohorts of origination are getting better, you expect a peak in NPL in March.

Still your ROE is super low compared to your targets, right? How do you expect that capital would be ranging in this scenario?

What's your bottom of capital that you would like to work as a risk-taking level for the group or for the controller, which is this is bottom that you would like to limit your capital? If you need at some point to reduce your origination, and how you're dealing with the new origination compared to your beginning of the year?

Because the beginning of the year, the longer duration, I think it hurt your margins, mainly your cost of risk, but when we compare to other players, other FinTechs, their duration is faster to adjust. Both these two questions here blended into each other.

First capital, and how is your origination compared to your duration in the beginning of the year going right now? Thank you.

Regarding capital, our capital also was impacted by the reserve in OCI, the other comprehensive income with the bonds that are valuated at hold to collect and sell, that you have a reserve in equity that moves between the accrued income in the bonds and the mark-to-market. That, as in the third quarter there was a big reduction in bond prices, so that we had a 160 billion pesos negative reserve in equity due to those bonds that affects, of course, the equity ratio.

On October, our tier 1 ratio in October is already at 24.5% talking about the bank, and that's of course because now this OCI reserve is slightly positive, so that's an improvement of 160 billion pesos in 1 month because of, as after the elections the rally that all the bonds has. Really with these levels of capital, we are comfortable.

I would say that our minimum appetite to operate is 13.5%, 13%, 13.5%, but we don't expect to get close to that in the near future. We believe that with the projections we have, we have enough capital at least until the end of 2027, and without any limitation for growth.

I would say that's of course that's something that we monitor and we will be updating regularly, but with this now that the reserves of bonds are stabilized, we don't see really the need for capital or any restriction in the growth of our loan book, at least the whole next year and 2027. Regarding the second question, I think I didn't get it very well.

Origination of loans and maturity of the loans.

We continue to originate both commercial and consumer lending. We have put some slow down in the consumer lending because, due to the portfolio quality, as you have seen.

First mortgages, we reduced significantly the origination of mortgages. In that case, not because of quality, but because of there's no any securitization market, and as we cannot be putting 30-year lending without any securitization market where we can offload those loans.

We continue in the consumer sector, we continue lending personal loans that may have a duration of 2 years, 2.5 years, and now we are also increasing car loans or auto loans that same duration. In talking about commercial financing, we are still originating a very short duration.

Slightly we start to increase duration because the demand was not there. Now after elections, with Argentina stabilizing and with a lot of growth potential in the country, we are expecting to see more projects for our clients to finance longer terms, but that's not yet happening.

We are expecting that next year the duration in the commercial lending should be getting longer than what we have today.

Thank you. Thank you for the answers.

No problem. Thank you.

Thank you. Hi.

Good morning, Gonzalo, Pablo, and Etienne. Thanks for the opportunity to ask questions.

My first one is on your loan growth expectations. What should we think for next year if you can give us some color on the expectations per segment?

Also, I believe there have been some announcements on private investments in Argentina. Have you quantified an amount, or can you give us some direction or color in which regions and sectors are you perceiving these new private investments, and how would you be willing to participate through corporate loans, as you mentioned, SME loans?

That would be very helpful. Then my second question is on asset quality.

I believe, I'm just double-checking, you mentioned NPL ratio could be peaking by March next year, and if that is correct, if you can provide any potential range, and if you're seeing the same trend on the cost of risk, if you're expecting cost of risk also to peak by March next year, and how should we think overall for the cost of risk next year? Thank you.

No, thank you for the question. Talking about, yeah, the color of next year, we we see growing, lending in 25%, more or less, in in real terms.

We want to continue gaining market share, so, of course, this this number will be adjusting according as how the market grow. We we see market growing around 20%, 22% in real terms, of course.

We, in terms of sectors, yeah, we we are growing I think that the commercial lending will be, capturing a lot of attention. As you said, there are a lot of projects and investments in the country that that we have a lot of customers already starting to talk about it.

We also want to continue growing the consumer lending with, of course, the the new origination tools and the models adjusted in order to to book, better better credits. We will start a bit slower in the first months, not start, continue a bit slower as we are having these months, and then restart the the full growth as we see that the the quality is improving.

Talking about commercial lending, yeah, we are we are seeing a lot of investment mainly in the oil and gas sector, as Vaca Muerta continues with with a lot of attention, in the mining segments, I mean sectors, sorry, copper, lithium, a lot of focus there also. We have we are, very also very present in the in the agribusiness, and, this year the agribusiness is going to have a very good harvest, and and and we are anticipating good investments for next year also in this sector that we will be also also joining there.

We are also starting to see, M&A starting to move, local M&A, companies, some privatizations that that may come close that we don't have yet the names, but we starting to hear rumors that some may not be huge privatizations, but yeah, smaller companies that can come to the market, and and of course, the idea for us is to be close to our customers there. Some of those projects are going to be too big for the local financial market to finance, because when we talk about oil and gas, the the amounts are are huge, but we will always be there to participate with smaller tickets or or or or to be there in in in transactions that local balance sheets can can afford.

Again, we were very close to our commercial customers, and really we we see a sentiment on on appetite for Argentina, on appetite for investing, and and that's where we are seeing that next year we are going to be growing growing faster faster than the market, and that will help also, to improve the the returns year-over-year. Talking about NPLs, yes, we are expecting our peak on NPLs around March next year.

We are seeing that the peak could be around 7%, 6%, 7%, and and the cost of risk, yes, again, same thing, we are seeing also peaking next year in March. For the bank, I'm talking, and we'll see more or less cost of risk between 9% and 10% the peak.

Then going down those both ratios to end the year at at at lower numbers, that that is what we that we will expect. We are already seeing the new harvest of of consumer lending at much better behavior than than the old ones, but we still need the time to digest the the older portfolio and and and see the results that will come after, I would say, second, third, and fourth quarter of next year.

No, thank you very much, super helpful, Gonzalo. Just another question in terms of this potential growth that you can see for the loan book next year.

Another competitor just mentioned the possibility to tap the markets next year. Is this something that you are also exploring?

Bonds or equity?

In bonds.

Equity, to the financing or equity?

Yes, fine. Debt financing.

Yes,

of course, it's something that we have always in our alternatives, to need to see how and the windows are starting to open. Really, we are not seeing now the need, but of course, that's something that we are always evaluating, and we need to see of course the profitability equation of the cost that the market could offer at some point.

Yes, mainly considering larger tickets or these projects that they make come, yes, definitely it's an alternative that we consider very seriously.

Perfect. Thank you very much.

Thank you, Ernesto. Thank you.

Hi, Pablo. Hi, Gonzalo.

Thank you very much for the opportunity. I just wanted the first question to be a clarification on the ROE trend, because you mentioned the peaks of NPLs and asset quality, as you mentioned, cost of risk, by March, right, of 2026.

You mentioned 11% to 12% in terms of real ROE for 2026, with reaching the 15% in the fourth quarter. Would that mean we should see a mid to high single-digit in the first half?

Just thinking about the speed of the recovery, right? Apparently, it seems to be a very gradual recovery.

Just wanted to check on that trend, Gonzalo. Then my second question is perhaps a follow-up on Ernesto, because I think we're all thinking about external funding, right?

You have perhaps one of the best franchises in Argentina, meaning that deposits are very, very relevant, no? Just wanted to understand if the visible funding cost advantage that you have demonstrated in previous quarters should continue, or do you think I would say the funding cost war should increase or deepen in 2026?

Thank you.

No, thank you. First question about ROE trend.

We see first quarter slower. I would say that the numbers you mentioned could be right.

We see regarding first quarter, margins we are going to be already in the first quarter at good levels, but we will still have some kind of heavy burden of NPLs, still the last months of that, and then starting to recap in the third quarter. I would say that, yes, lower ROE in the first quarter, and then recapping the trend until the 15s in the fourth quarter and continue with that in 2027.

Your assumption is right in terms of ROE evolution. Remember that the group has also Naranja and the bank, and Naranja also needs to improve that portfolio performance.

That's why also we need a couple of months from next year in order to be able just to go up the two digits in ROE. Talking about the funding was the other one, no?

Yeah. Funding, I would say that, yeah, my answer before to Ernesto was, yes, we are analyzing potential debt in the market, but we always look first at our deposit base.

We see some possibilities for next year in deposits. We see that the market liquidity is coming back.

With interest rates reductions, the market will be also more liquid. We see that there may be some changes in regulations for mutual funds that put some limitations for the banks to go to the market to place funds in the market, so that liquidity should come back to banks.

As the money markets are a huge holders of funds from deposits from customers in Argentina, and they put part of their deposits in banks, but also they go to the market and place those funds in the market in cauciones, and next, according to next year, they should be able to put more money of those in the bank. That should also provide more liquidity to banks to lend.

That will be another source of liquidity for banks. We are aiming to increase our deposits, to gain market share in deposits.

All our business line has that mandate, because we consider it's the more stable funding and the cheaper one, or the cost-efficient one. Of course, depending on the speed of the credit growth, we may need to go to the market.

If we need to do it, we'll do it, but our first priority is deposits, and we really believe that deposits next year should start to grow better than this year. I wouldn't say same pace than lending, but better than this year.

Perfect, Gonzalo. Thank you very much.

I think the last guidance you mentioned in the second quarter on deposits growth was around 35% in real terms. Just wanted to check if you are revising this number, and also I understand, as you mentioned, no, the deposit growth for 2026 is going to be lower than the portfolio,

no? For this year, we are keeping, yes, those guidance for growth.

For next year, we are seeing more like 20 20% in real terms, deposits, 25% lending. That again, that's something, a lot of moving targets for next year, we will be updating those guidance because we need to see how the country is changing.

1 month ago, we were with a lot of volatility. Now, stabilizing, interest rates reductions, we need to see how everything comes together.

That's our so far, it's our assumption around 20% for next year.

Thank you, Gonzalo and Pablo.

Thank you.

Thank you.

Hi. Good morning, Gonzalo and Pablo.

Thank you for the call and taking my question. A couple of questions also.

I guess just on Naranja you mentioned, Gonzalo, right, that needs to recover as well. Do you think NPLs peak there also in 1Q, or how do you see the evolution of asset quality in Naranja, and then also your ability to resume growth at Naranja?

Then second question, just on margins. Do you think we saw some pressure this quarter, just given all the liquidity issues in the quarter.

Do you think this is the bottom? Should that already begin to recover in 4Q, or will that take a little bit longer until you start to get the loan growth and asset quality under control, just to think about the evolution of margin in the short term and then, I guess, thinking about 2026 as well?

Thank you.

Talking about Naranja, yeah, I would say that we are seeing the same, more or less same same same timing for the peaking. Talking about March, April, next year, same, and they also doing a lot of things.

Their their turnaround, I would say, or I would say not not the wordings, but their their their they have a shorter duration in lending, they cure their portfolio faster than the bank. I would say March March should be also the peak for for them, and we're expecting also an improving on on on metrics for for Naranja for the rest of the year.

Of course, as as they go to a lower segment, they, they have bigger swings on the bad, but then on the good at the at the same time. Talking about NIMs margins, yes.

Margin, yes, that we saw the bottom was October. Our fourth quarter still has October, which is 1 month with a with a low margin.

In the in the quarter, you'll still, in the next quarter, you still see one-third of of the of the of the month, I would say, with a with a bad margin. Our October was a bad margin, because it was the worst month, before the elections, the election month.

Then November, really we are seeing a a quick, a fast turnaround and a fast improving in in the margin, and December, I would say it will be 100% at the second quarter levels. To your question, the bottom was I would say October, third quarter and October, but November, December already recapping, December already at at the same or pre-volatility levels, I would say.

For next year, margins will be at good levels. Of course, then after the second half, slightly reduction, because with the continued rate reduction.

Today what we are seeing is our cost of funding reducing significantly now, and our lending, start to reduce the interest rates at a at a slower pace, because we have already booked longer term lending at a higher rates. We will enjoy those higher margins first half of next year, and then we we may see some slight reduction, but not nothing significantly next year yet.

In a summary, yeah, the the the bottom was third quarter and October.

No, that's helpful, Gonzalo. Just on the reserve requirements, they've been reducing a little bit.

Do you think it's enough now that liquidity is less of an issue? Do you think they need to reduce the reserve requirements further from here, or how do you think about that and the impact on your liquidity?

I would say so far, meaning this month, it's okay, and the Central Bank, as make some changes in liquidity requirements last week, and they were better, mainly in the calculation, the daily calculation, but also they reduced 3.5% the cash encashments that are at zero interest, so that will also improve a bit the margins for banks going forward, starting December. This is starting December the 1st.

They reduce so that's not significant for injecting liquidity to the market, but I would say that at some point next year, that may be revisited again by Central Bank, because at some point next year it could be needed. It's something that I wouldn't say that is needed now of the next 3 months, the next quarter, but at some point, depending on how the market behaves, could be there is an opportunity for a revision on that side.

That's great. Thank you, Gonzalo.

Hi, everyone. Thank you for taking my question.

My question is a follow-up on Ernesto's question on asset quality. I would like to get a better view of the asset quality dynamics during this quarter, mainly between segments.

You said we should end the year with better NPLs than current levels. Could you please share more details on that?

It could be in general terms, what should we expect? With which coverage ratio would be comfortable going forward?

Thank you.

Sorry, Camila. There was a noise in the middle of the conversation.

We couldn't get the first part. Yes, the part of the coverage, not the other part.

No problem.

Sorry. Sure, I'll repeat the entire question.

I would like to get a better view on the asset quality dynamics during this quarter, and which levels should we expect for the end of the year? You said that we should expect better NPLs, in general terms, at which levels?

Did you get the coverage ratio part?

Yes.

Perfect. That's it.

Thank you.

When we talk about NPL better than is the end of next year, not this year, right? This year we still, as we said, that the peak will be March next year.

What we are seeing, and this is for the end of 2026, NPLs, I would say in a range of 4.3%, give or take, more or less, 4%, 4.3%, 4.5%. That could be the range of NPLs by the end of '26.

The coverage? I didn't get that.

The coverage, the last number is 101.5%. Really, the comes from the model of expected losses.

Talking with the credit department, they say that the coverage is beginning to grow, and it's likely that at the end of next year could end up at 110%, but really is Right. When you grow your book, you create a lot of upfront reserves, and that increase your coverage.

Then you start using those, and that's what we are now. Now we want to stabilize the portfolio, and to start growing again.

Now we are in the process of using the upfront reserves that were booked when the portfolio grew a lot, and now we are also decelerated the growth, you don't have a lot of upfront books because of new loans, and you are using what you booked before. It's kind of a mathematical thing, but we are comfortable with the level we have.

Thank you. Thank you.

Hi, Gonzalo. Hi, Pablo.

Thank you for the call. Wanted to ask if there are any remaining integration cost from the HSBC acquisition that could impact results in the coming quarters?

No, I would say nothing big. We may have some small thing in the fourth quarter, but regarding systems that we are shutting down, but not restructuring cost, which is the big portion.

We booked everything in the third quarter, not just the people that left in the quarter, but also what we planned that the ones that are leaving till the end of the year, everything is booked there. Something very small, not related to restructuring, may happen in the fourth quarter, related to system, but really small, nothing important.

Thank you.

You're welcome, Pedro.

You're welcome.

Hello, and thank you for taking the questions. Congratulations on how brave you are, because you are giving predictions for the ROE for the middle of the year and for the end of the year, and I hope that all those forecasts are actually achieved.

More concretely, I realize that we have gone through three conference calls, and I don't think anybody has told us what their economic assumptions are. What do you expect for inflation, interest rates, and the currency for the end of next year?

Maybe you have said it and I missed it, sorry for that. Second, in terms of liquidity, your LDR in pesos is around the 100% level, and more partially it is because of Naranja.

Is there an absolute level beyond which you would rather not go, and therefore you might be willing to restrict your loan growth until deposits catch up? Thank you.

Hello, Carlos. How are you?

In terms of macroeconomic assumptions, I will tell you the last estimates from our chief economist for this year and next year. GDP growth, 4% for this year, 3.7% for next year.

Inflation ending this year 30%, next year inflation 18%, and FX 1,410 at the end of this year, and 1,610 next year, end of next year.

Yeah, 15 10. Thank you, that's very useful.

Yes. LDR in pesos, loan-to-deposit ratio

As we our talking of first LDR, then we have our LCR, which is the liquidity coverage ratio, that we have more than 180%, very very liquid there. In loan-to-deposit ratio, we are at 99%, 100%, but we are assuming that our peso deposit will continue to grow and what happened also in the third quarter and in October is a high dollarization happened in the economy, because of what was expected in the elections.

We saw deposit in pesos to turn into dollars. Now we are starting to see some kind of reverse thing that some of the actors selling the dollars and going back to pesos because they need to operate, and they are not expecting a devaluation in the near term, at least.

We believe that we have other means to grow deposits or to go to the market, really we don't see that, even though we monitor that, and that's why we are putting a lot of focus in deposit growth. We expect that deposit growth could come with us, and that will help us to continue growing the peso lending.

We don't see a constrain in the growth because of that so far.

You don't see that as a constrain?

No.

Okay. In terms of the dollarization, you are completely right.

There has been a dollarization both of loans and deposits. You and the other banks are mentioning demand for dollar loans.

Should we expect, therefore, further dollarization of the banks on the asset side? Have you started to see or not yet a reduction in the demand for dollars?

Have you seen actual dollar sales back to pesos?

Lending in dollars, yes. We we see in the commercial lending high demand or higher, I would say, demand in dollar lending.

That that is continuing, mainly what we are seeing this these projects that we are talking about, we we expect that to continue. Yes, we have grown a lot our deposits in dollars starting, the tax amnesty that that Milei put, and after that, we our our our share in deposits dollar dollar deposits is higher than our our fair share, we are taking advantage on that.

Of course, with the yeah, the limits, internal limits that we have to lend dollars, etc. We can also go to the market and get dollar debt, which the market is is there also.

We expect to continue growing dollar lending, of course, at a moderate rate, considering the the the liquidity, limits that we have internally to our dollar deposits. Dollarization, of course, the demand for dollars, from our customer base talking about purchase of dollars, has after the election has has gone down.

It was at very very high levels before the elections, has gone down to normal levels. In Argentina, you always love have people have people buying dollars, but but that, it's something that can come back again if there is any any any noise or any political uncertainty.

Far, we we expect this to be to be quiet in the next months, and not really it's now at a at at I would say first months of the year levels, and we expect this to continue at this at this stage.

Can you give us an idea about the levels of US dollar purchases that you are seeing from your customers? The other banks have told us they went from million, $5 million or $6 million to $30 million or so per week.

What are you relative to, let's say, the second quarter or the first quarter?

We used to have $50 million per day. We are now at, I would say, $15 million, something like that.

Lower levels. It's daily levels, but same level at the beginning of the year, I would say.

That would be the level of the beginning of the year as well, the $15 million?

More or less, yeah.

Thank you.

You're welcome.

Thank you. Hi, Gonzalo, Pablo, Etienne.

A quick follow-up. Most of my questions have been already asked, but just on asset quality and there were many many questions about the peak and how you are seeing.

What makes you confident that first quarter will be the peak? Because we heard before, right?

I think second quarter was supposed to be the peak, then third quarter, now we are talking about the first quarter 2026. I know it's hard, but what is the leading indicators you are looking for, why you think it should improve?

Is lower yields on loans moving lower? Is the economy improving?

Is, I don't know, any kind of underwriting lessons that you're learning in this last year? Just trying to understand what drives the confidence for improved asset quality.

Just a second one on this topic, how your expected loss model should work on this? Should we start to see lower provisions now, because you are calling for improvement ahead, or no, you still need to do some kind of incurred losses provisions?

Help us to understand the difference between incurred losses and expected losses here for you. Thank you.

I would say that, of course, when you make a an an expectation for for for for the future on NPLs, there are one two things that that plays. One thing is what you can control, and the other thing is what you cannot control, which is the the the market and the and and how the the economy is doing for for families and for people.

Of course, what that what we always talk is about what we are doing and what we expect that will create a change. Then, in the middle, you may have elections, you have interest rate going up that you couldn't, expect before, many things living in a in a country, in a in a, in a developing country that, 1 month ago was in the border of a hyperinflation if the if the elections were with a different scenario, and now we are all again trusting that the that the but with a lot of volatility in the middle that you have a lot of interest rate going out and families being affected.

That's why it's not that easy to predict what's going to happen. It's our best estimate with considering what we can control.

As people do estimates. What we are doing is, of course, we change the score of the customers we are lending to.

Our score now is it's it's a it's a better score, it's a higher score. We are we cut a lot of the lower scores that that we used to have.

We reduced limits in in in some of of of of the lending, and we, of course, monitor the the rolls, and we see under rolls by by by by vintage on the harvest, and and we are seeing that the new origination is behaving before than the old one. Then, of course, you have in the middle credit cards, which is just that that's is not new origination.

Credit cards, that what but I'm talking about personal loans, the first thing. Now when you go to credit cards, it's old customer that starts to behave, bad.

That is that that that you didn't do anything, but they just started to be behaved different because of adjustments they had in their in the family economy, etc. In that sense, we are also seeing some slight in improving in in in in personal loans.

What we're talking about, we we see personal loans improving, credit cards still having a a heavy a heavy lifting, and that's why we still see this going on on the third quarter on on on March. If it's if it's February or April or May, it's this is, again, I think what Carlos was saying, "Well, you're predicting ROE, you are a a magician."

We are doing our best estimate today, with what we have. Of course, that we cannot guarantee that the ROE will be 11%, it's an estimation with the forecast we have, as all banks does in the world.

This is the same. This is what with the tools that we have, we made a lot of changes that we expect that they are going to produce changes, again, going to better scores, cutting limits, and and and monitoring that rolls of the of the new lending is coming better than the old ones.

Then we if if there is something in March or February that happens that affects families' incomes again, well, we cannot predict that. With the assumptions and the economy as is today, we expect this to happen.

No, no, super clear. I know it's hard, and no, thank you.

Good examples. I was just trying to understand what has changed, right, and

it was very good. The other thing, you are talking also about the dynamic, I asked about that part.

The dynamic of the models, the point is that when the new lending, you are booking new losses or new reserves for the new lending, considering the behavior of the past lending. You still won't see a lot of reduction in the I would say the cost of risk in the first month, because even though we are originating better quality, you still need to book reserves considering the past performance of your portfolio.

You cannot say, "Well, these guys are better, I will book a better performance," because you didn't see that in your book. That's why, at the beginning, you will take some time have a reduction in the cost of risk, because the new lending is also booked considering the behavior of the past lending.

Then when you start proving that those customers are behaving better than the old ones, then you start reducing your cost of risk. That's something that is gradual, it's not that quick.

That's why we'll see first quarter of next year still with higher provision. Oh,

no, super clear, Gonzalo. Thank you for the examples and good luck.

Thank you very much.

Thank you.

Hi. Good afternoon.

Thanks for the call.

I understand you mentioned you're expecting return on equity by the mid-teens by 2027. I would like to know what loans-to-GDP assumption you are assuming for this achievement, and if this return on equity is a sustainable steady state that you are aiming at, or you are aiming at a higher return on equity, and what would be the steady-state loan-to-GDP penetration in Argentina under this assumption?

What we are seeing is, loan-to-GDP today is around 10%, 11%, more or less. We are expecting in our projections, if everything goes right, that this can improve 2% per year.

Our aim is to be in a sustainable ROE between 15% and 20%, I would say. That's the aim.

We expect, with everything going right with our assumptions to be around 15% by the end of next year. Starting at 15%, I consider that by 2027, we could be in that range.

Still, we don't know what Argentina will find by that time, but if everything continues to improve, loans-to-GDP continue to grow at least 2% per year, we believe that that could be the range in 2027 and onwards, maybe 2027 still at mid-teens and 2028 already at higher things. Our aim for the longer term with a country that is already stabilized with our changes in our operating model, we are also working in chasing our operating model of how to serve our customers to reduce costs and compete with the FinTechs, with Mercado Pago, that we know that they have a much lower cost to serve.

With that already everything implemented, our aiming is to be between 15% and 20%, I would say. That should be after 2027.

Thanks a lot. Thanks for the call and the reasoning.

Thank you very much.

Okay. I think that was

the last

question, right?

Right, Pablo.

Okay. Thank you, everybody, for attending this call.

If you have any further questions, please do not hesitate to contact us. Good morning.

Good afternoon. Bye-bye.

Bye-bye.