notas al balance especial de escision al 30 …backend.gfgsa.com/upload/bgba balance especial...

BANCO DE GALICIA Y BUENOS AIRES S.A.

SPECIAL BALANCE SHEET FOR SPIN-OFF PURPOSES AS OF SEPTEMBER 30, 2017_________________________________________________________________________


LEGAL DOMICILE: Tte. Gral. Juan D. Perón No. 430 – Buenos Aires - Argentina

PRINCIPAL LINE OF BUSINESS: Domestically-owned Local Private Commercial Bank

DATE OF REGISTRATION WITH THE PUBLIC REGISTRY OF COMMERCEOF BYLAWS: November 21, 1905.

OF FIRST AMENDMENT: November 30, 1909 and amendments on successive dates, the last of

which was July 14, 2017 - No. 13,976 - Book 85.

REGISTRATION NO. WITH THE CORPORATION CONTROL AUTHORITY (I.G.J.): 167,488.

DATE OF EXPIRATION OF BYLAWS: June 30, 2100.

CAPITAL STATUS:

Shares Capital Stock

Class Amount Votes per Share

Issued Pending Issuance Allocated Paid-in Not Paid-

inOutstanding

In Portfolio

ORDINARY

- Category "A" 101 5 - - - - - -

- Category "B"562,326,55

0 1 562,327 - - - 562,327 -

Total as of 09.30.17

562,326,651 562,327 - - - 562,327 -

NAME OF THE CONTROLLING COMPANY: Grupo Financiero Galicia S.A.

LEGAL DOMICILE: Tte. Gral. Juan D. Perón 430, 25th floor – Buenos Aires - Argentina.

PRINCIPAL LINE OF BUSINESS: Financial and Investment Activities

INTEREST HELD BY THE CONTROLLING COMPANY IN THE SHAREHOLDERS’ EQUITY: 100%

CONTROLLING COMPANY'S PERCENTAGE OF VOTES: 100%

Firmado a los efectos de su identificación con nuestro informe de fecha 09-11-17

Firmado a los efectos de su identificación con nuestro informe de fecha 09-11-17 PRICE WATERHOUSE & CO. S.R.L.

POR COMISION FISCALIZADORA C.P.C.E.C.A.B.A. T° 1 - F° 17

----------------------------- ------------------------------ ------------------------------ -------------------------------- SANTIAGO J. MIGNONE (Socio) JOSE L. RONSINI FABIAN E. KON SERGIO GRINENCO NORBERTO D. CORIZZO Contador Público (U.B.A.)GERENTE DE CONTADURIA GERENTE GENERAL PRESIDENTE SINDICO C.P.C.E.C.A.B.A. T° 233 - F° 237

2





3

BANCO DE GALICIA Y BUENOS AIRES S.A.SPECIAL BALANCE SHEET FOR SPIN-OFF PURPOSES AS OF SEPTEMBER 30, 2017

Figures Stated in Thousands of Pesos ($)

BALANCE SHEET

COLUMN I - SPECIAL

BALANCE SHEET AS OF

SEPTEMBER 30, 2017 (NOTE 3)

COLUMN II - SHAREHOLDERS'

EQUITY OF TARJETAS

REGIONALES AND

SHAREHOLDERS' EQUITY

ALLOCATION AS OF SEPTEMBER

30, 2017 (NOTE 3)

COLUMN III - BALANCE SHEET

OF SHAREHOLDERS'

EQUITY NOT SPUN OFF AS OF SEPTEMBER 30,

2017 (NOTE 3)

ASSETS

CASH AND DUE FROM BANKS 35,447,545 0 35,447,545

- CASH 8,295,876 0 8,295,876

- FINANCIAL INSTITUTIONS AND CORRESPONDENTS 27,151,669 0 27,151,669

- ARGENTINE CENTRAL BANK 26,070,958 0 26,070,958

- OTHER LOCAL FINANCIAL INSTITUTIONS 79 0 79

- FOREIGN 1,080,632 0 1,080,632

GOVERNMENT AND PRIVATE SECURITIES 22,030,725 0 22,030,725

- TOTAL HOLDINGS RECORDED AT FAIR MARKET VALUE 3,463,287 0 3,463,287

TOTAL HOLDINGS RECORDED AT THEIR ACQUISITION COST PLUS THE I.R.R. 3,606,055 0 3,606,055

- INVESTMENTS IN LISTED PRIVATE SECURITIES 543 0 543

- INSTRUMENTS ISSUED BY THE ARGENTINE CENTRAL BANK 14,960,840 0 14,960,840

LOANS 139,159,038 0 139,159,038

- TO THE NON-FINANCIAL PUBLIC SECTOR 231 0 231

- TO THE FINANCIAL SECTOR 4,443,658 0 4,443,658

- INTERBANK LOANS – (CALL MONEY LOANS GRANTED) 1,016,797 0 1,016,797

- OTHER LOANS TO LOCAL FINANCIAL INSTITUTIONS 3,230,688 0 3,230,688

- ACCRUED INTEREST, ADJUSTMENTS AND EXCHANGE RATE DIFFERENCES RECEIVABLE 196,173 0 196,173

- TO THE NON-FINANCIAL PRIVATE SECTOR AND RESIDENTS ABROAD 137,792,560 0 137,792,560

- OVERDRAFTS 8,046,944 0 8,046,944

- PROMISSORY NOTES 30,004,313 0 30,004,313

- MORTGAGE LOANS 3,919,262 0 3,919,262

- PLEDGE LOANS 889,274 0 889,274

- PERSONAL LOANS 16,086,528 0 16,086,528

- CREDIT CARD LOANS 46,433,360 0 46,433,360

- OTHERS 31,283,697 0 31,283,697

- ACCRUED INTEREST, ADJUSTMENTS AND EXCHANGE RATE DIFFERENCES RECEIVABLE 1,829,851 0 1,829,851

- (UNALLOCATED COLLECTIONS) (32,719) 0 (32,719)

- (DOCUMENTED INTEREST) (667,950) 0 (667,950)

- (ALLOWANCES) (3,077,411) 0 (3,077,411) JOSE L. RONSINI

GERENTE DE CONTADURIAFABIAN E. KON

GERENTE GENERALSERGIO GRINENCO

PRESIDENTEFirmado a los efectos de su identificación con

nuestro informe de fecha 09-11-17POR COMISION FISCALIZADORA

Firmado a los efectos de su identificación con nuestro informe de fecha 09-11-17PRICE WATERHOUSE & CO. S.R.L.

C.P.C.E.C.A.B.A. T° 1 - F° 17

SANTIAGO J. MIGNONE (Socio)Contador Público (U.B.A.)

C.P.C.E.C.A.B.A. T° 233 - F° 237





4

NORBERTO CORIZZOSINDICO





5

Firmado a los efectos de su identificación

Firmado a los efectos de su identificación

con nuestro informe de fecha 09-11-17 POR

COMISION FISCALIZADORA

con nuestro informe de fecha 09-11-17

PRICE WATERHOUSE & CO. S.R.L.

C.P.C.E.C.A.B.A. T° 1 - F° 17

JOSE L. RONSINIGERENTE DE CONTADURIA

FABIAN E. KONGERENTE GENERAL

SERGIO GRINENCOPRESIDENTE

NORBERTO CORIZZO SINDICO


C.P.C.E.C.A.B.A. T° 233 - F° 237



BALANCE SHEET

COLUMN I - SPECIAL

BALANCE SHEET AS OF



EQUITY OF TARJETAS

REGIONALES AND


ALLOCATION AS OF SEPTEMBER

30, 2017 (NOTE 3)


OF SHAREHOLDERS'

EQUITY NOT SPUN OFF AS OF SEPTEMBER 30, 2017 (NOTE 3)

OTHER RECEIVABLES RESULTING FROM FINANCIAL BROKERAGE 16,169,734 0 16,169,734

- ARGENTINE CENTRAL BANK 2,934,1800

2,934,180

- AMOUNTS RECEIVABLE FOR SPOT AND FORWARD SALES TO BE SETTLED 3,959,326 0 3,959,326

- SECURITIES RECEIVABLE UNDER SPOT AND FORWARD PURCHASES TO BE SETTLED 3,912,975 0 3,912,975

- OTHERS NOT INCLUDED IN THE DEBTOR CLASSIFICATION REGULATIONS 1,809,901 0 1,809,901

- UNLISTED NOTES 1,703,975 0 1,703,975

- BALANCES FROM FORWARD TRANSACTIONS WITHOUT DELIVERY OF UNDERLYING ASSET TO BE SETTLED 249,118 0 249,118

- OTHERS INCLUDED IN THE DEBTOR CLASSIFICATION REGULATIONS 1,780,957 0 1,780,957

- ACCRUED INTEREST RECEIVABLE INCLUDED IN THE DEBTOR CLASSIFICATION REGULATIONS866 0 866

- (ALLOWANCES) (181,564) 0 (181,564)

RECEIVABLES FROM FINANCIAL LEASES 1,647,937 0 1,647,937

- RECEIVABLES FROM FINANCIAL LEASES 1,639,2850

1,639,285

- OTHER ACCRUED INTEREST AND ADJUSTMENTS RECEIVABLE 27,913 0 27,913

- (ALLOWANCES) (19,261) 0 (19,261)

EQUITY INVESTMENTS 6,675,493 5,453,716 1,221,777

- IN FINANCIAL INSTITUTIONS 1,161,1790

1,161,179

- OTHERS 5,731,911 5,453,716 278,195

- (ALLOWANCES) (217,597) 0 (217,597)

MISCELLANEOUS RECEIVABLES 2,272,077 0 2,272,077

- RECEIVABLES FOR ASSETS SOLD 118,3820

118,382

- OTHERS 2,168,316 0 2,168,316

- ACCRUED INTEREST AND ADJUSTMENTS ON RECEIVABLES FOR ASSETS SOLD 2,157 0 2,157

- OTHER ACCRUED INTEREST AND ADJUSTMENTS RECEIVABLE 17,596 0 17,596

- (ALLOWANCES) (34,374) 0 (34,374)

BANK PREMISES AND EQUIPMENT 3,517,780 0 3,517,780

MISCELLANEOUS ASSETS 518,611 0 518,611

INTANGIBLE ASSETS 2,709,837 0 2,709,837

- ORGANIZATION AND DEVELOPMENT EXPENSES 2,709,837 0 2,709,837

UNALLOCATED ITEMS 59,882 0 59,882

TOTAL ASSETS 230,208,659 5,453,716 224,754,943JOSE L. RONSINI






C.P.C.E.C.A.B.A. T° 1 - F° 17

SANTIAGO J. MIGNONE (Socio)





6


Contador Público (U.B.A.)C.P.C.E.C.A.B.A. T° 233 - F° 237





7



BALANCE SHEET

COLUMN I - SPECIAL

BALANCE SHEET AS OF



EQUITY OF TARJETAS

REGIONALES AND SHAREHOLDERS'

EQUITY ALLOCATION AS OF SEPTEMBER


OF SHAREHOLDERS'

EQUITY NOT SPUN OFF AS OF SEPTEMBER 30, 2017 (NOTE 3)

LIABILITIES

DEPOSITS 162,332,993 0 162,332,993

- NON-FINANCIAL PUBLIC SECTOR 1,480,890 0 1,480,890

- FINANCIAL SECTOR 138,580 0 138,580

- NON-FINANCIAL PRIVATE SECTOR AND RESIDENTS ABROAD 160,713,523 0 160,713,523

- CHECKING ACCOUNTS 28,633,360 0 28,633,360

- SAVINGS ACCOUNTS 72,851,335 0 72,851,335

- TIME DEPOSITS 56,776,170 0 56,776,170

- INVESTMENT ACCOUNTS 54,012 0 54,012

- OTHERS 1,238,347 0 1,238,347

- ACCRUED INTEREST, ADJUSTMENTS AND EXCHANGE RATE DIFFERENCES PAYABLE 1,160,299 0 1,160,299

OTHER LIABILITIES RESULTING FROM FINANCIAL BROKERAGE 34,250,603 0 34,250,603

- ARGENTINE CENTRAL BANK 20,312 0 20,312

- OTHERS 20,312 0 20,312

- BANKS AND INTERNATIONAL ENTITIES 3,592,674 0 3,592,674

- UNSUBORDINATED NOTES 4,352,548 0 4,352,548

- AMOUNTS PAYABLE FOR SPOT AND FORWARD PURCHASES TO BE SETTLED 3,986,846 0 3,986,846

- SECURITIES TO BE DELIVERED UNDER SPOT AND FORWARD SALES TO BE SETTLED 4,083,716 0 4,083,716

- LOANS FROM LOCAL FINANCIAL INSTITUTIONS 2,378,124 2,378,124- INTERBANK LOANS – (CALL MONEY LOANS RECEIVED) 196,300 0 196,300

- OTHER LOANS FROM LOCAL FINANCIAL INSTITUTIONS 2,151,401 0 2,151,401

- ACCRUED INTEREST PAYABLE 30,423 0 30,423

- BALANCES FROM FORWARD TRANSACTIONS WITHOUT DELIVERY OF UNDERLYING ASSET TO BE SETTLED208,911 0 208,911

- OTHERS 15,473,828 0 15,473,828

- ACCRUED INTEREST, ADJUSTMENTS AND EXCHANGE RATE DIFFERENCES PAYABLE 153,644 0 153,644

MISCELLANEOUS LIABILITIES 4,880,979 0 4,880,979

- DIRECTORS' AND SYNDICS' FEES 15,987 0 15,987

- OTHERS 4,864,992 0 4,864,992

PROVISIONS 262,899 0 262,899

SUBORDINATED NOTES 4,360,056 0 4,360,056

UNALLOCATED ITEMS 53,801 0 53,801

TOTAL LIABILITIES 206,141,331 0 206,141,331JOSE L. RONSINI






C.P.C.E.C.A.B.A. T° 1 - F° 17


C.P.C.E.C.A.B.A. T° 233 - F° 237





8






9



BALANCE SHEET

COLUMN I - SPECIAL

BALANCE SHEET AS OF



EQUITY OF TARJETAS

REGIONALES AND SHAREHOLDERS'

EQUITY ALLOCATION AS OF SEPTEMBER

30, 2017 (NOTE 3)


OF SHAREHOLDERS'

EQUITY NOT SPUN OFF AS OF



- CAPITAL STOCK 562,327 127,425 434,902

- ADDITIONAL PAID-IN CAPITAL 372,293 84,363 287,930

- NON-CAPITALIZED CONTRIBUTIONS 605,306 137,164 468,142

- LEGAL RESERVE 3,665,044 830,508 2,834,536

- DISCRETIONARY RESERVE 13,700,907 4,274,256 9,426,651- UNAPPROPRIATED RETAINED EARNINGS 5,161,451

05,161,451

TOTAL SHAREHOLDERS’ EQUITY 24,067,328 5,453,716 18,613,612

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 230,208,659 5,453,716 224,754,943

JOSE L. RONSINIGERENTE DE CONTADURIA

FABIAN E. KONGERENTE GENERAL

SERGIO GRINENCOPRESIDENTE


POR COMISION FISCALIZADORA

NORBERTO CORIZZO


PRICE WATERHOUSE & CO. S.R.L. C.P.C.E.C.A.B.A. T° 1 - F° 17


C.P.C.E.C.A.B.A. T° 233 - F° 237





10

SINDICO





11


NOTES TO THE SPECIAL BALANCE SHEET FOR SPIN-OFF PURPOSES AS OF SEPTEMBER 30, 2017 Figures Stated in Thousands of Pesos ($)

NOTE 1: PURPOSE OF THIS SPECIAL BALANCE SHEET FOR SPIN-OFF PURPOSES

This Special Balance Sheet for Spin-off Purposes as of September 30, 2017 has been prepared only to be considered by the Shareholders' Meeting as a result of the proposed spin-off of our interest in Tarjetas Regionales S.A. for its filing with the controlling agencies as supplementary documentation to the Prospectus of spin-off/merger of a portion of the assets of Banco de Galicia y Buenos Aires S.A. and its addition to Grupo Financiero Galicia S.A.Given the specific purpose of this Special Balance Sheet for Spin-off Purposes, the comparative information, the Statement of Income, the Statement of Changes in Shareholders' Equity, the Statement of Cash Flows and Cash Equivalents and other supplementary information required by Argentine Central Bank (B.C.R.A.) regulations and the professional accounting standards in force for financial statements of periodic presentation have not been presented. Accordingly, this Special Balance Sheet for Spin-off Purposes and the supplementary notes thereto should be read jointly with the financial statements of Banco de Galicia y Buenos Aires S.A. as of September 30, 2017.

NOTE 2: BASIS FOR PRESENTATION AND VALUATION CRITERIA OF THE SPECIAL BALANCE SHEET FOR SPIN-OFF PURPOSES

2.1. DISCLOSURE CRITERIA

This Special Balance Sheet for Spin-off Purposes, which arises from accounting records, is disclosed according to Argentine Central Bank regulations regarding the Accounting Reporting System for quarterly/annual publication and the provisions of General Resolution No. 622/13 of the National Securities Commission ("C.N.V."). They have been adjusted for inflation, as stated in Note 2 item 2.2.1.

2.2 - ACCOUNTING STANDARDS APPLIED 2.2.1 - MEASUREMENT UNIT

Argentine GAAP in force in Buenos Aires provide that financial statements shall be stated in constant currency, pursuant to the provisions of Technical Pronouncements Nos. 6 and 17 of the Argentine Federation of Professional Councils in Economic Sciences (“F.A.C.P.C.E.”), as amended by Technical Pronouncement No. 39, approved by the Professional Council in Economic Sciences of Buenos Aires on April 16, 2014, as well as interpretation No. 8 of the F.A.C.P.C.E. These GAAP provide for that the adjustment for inflation shall be applied upon an inflationary context, which is present when, among other considerations, there exists an accumulated rate of inflation reaching or exceeding 100% during three years, taking into consideration, for such purpose, the domestic wholesale price index published by the Argentine Institute of Statistics and Census. The Bank's financial statements reflect the effects of the changes in the purchasing power of the currency up to February 28, 2003, the adjustment for inflation having been discontinued from such date, pursuant to the requirements of Decree No. 664/03 of the National Executive Branch, Section 268 of General Resolution No. 7/2005 of the Corporation Control Authority, Communiqué “A” 3921 of the Argentine Central Bank and General Resolution No. 441/03 of the C.N.V. Resolution MD No. 41/03 of the Professional Council in Economic Sciences of Buenos Aires (C.P.C.E.C.A.B.A.) established the discontinuation of the recognition of the changes in the purchasing power of the currency, effective October 1, 2003. At period-end, the macroeconomic environment cannot be qualified as a hyperinflationary economy considering the guidelines established by the professional accounting standards





12



and the government’s expectation towards a lower inflation level. Even though the controlling agencies have not issued a decision in this regard, at period-end, the conditions for the application of the adjustment for inflation would not be met. However, when reading and analyzing these financial statements one should take into consideration the existence of fluctuations in significant economic variables, which took place during the past fiscal years.

2.2.2 - MAIN VALUATION CRITERIA:

2.2.2.1 - ASSETS AND LIABILITIES IN FOREIGN CURRENCYThese are stated at the U.S. dollar exchange rate set by the Argentine Central Bank, at the close of operations on the last business day of each month.As of September 30, 2017, balances in U.S. Dollars were converted applying the reference exchange rate ($17.3183) determined by the Argentine Central Bank. Assets and liabilities valued in foreign currencies other than the U.S. Dollar have been converted into the latter currency using swap rates provided by the Argentine Central Bank.

2.2.2.2 - GOVERNMENT AND PRIVATE SECURITIES

2.2.2.2.1 - GOVERNMENT SECURITIESThe Argentine Central Bank set forth, according to the assets’ most probable use, two valuation criteria for holdings of non-financial public sector debt instruments. a) Fair Market Value:This includes government securities and monetary regulation instruments included in the volatilities or present values lists issued by the Argentine Central Bank.These are recorded at the closing price for each class of securities in the corresponding markets or at their present value, plus the value of amortization and/or interest coupons due and receivable.b) Acquisition Cost plus the I.R.R.:This includes the government securities and monetary regulation instruments of the Argentine

Central Banknot included in the preceding item.These holdings are recorded at their acquisition cost increased on an exponential basis according to their I.R.R. The monthly accrual is charged to income or an asset offset account, depending on the securities involved:B1) Government debt instruments subscribed through swap, payment or exchange by any other government debt instruments. In the case that the market value of each instrument is lower than its book value, 50% of the monthly accrual of the I.R.R. must be charged against an asset offset account. Said offset account shall be reversed by charging to income to the extent its balance exceeds the positive difference between the market value and book value. B2) Monetary regulation instruments issued by the Argentine Central Bank. The monthly accrual of the I.R.R. shall be charged to income.B3) Government securities that were not subscribed through swap with no volatility or present value informed by the Argentine Central Bank. These are recorded at the present value of cash flows discounted by the internal rate of return of instruments with similar characteristics, duration and volatility. When the book value exceeds the present value, the monthly accrual shall be recorded in an asset offset account.





13

Furthermore, and pursuant to the policy defined by the Bank, those instruments subject to be valued at the fair market value and then decided to be valued at their acquisition cost plus the I.R.R. may be recorded in this item, when purpose thereof is to obtain contractual cash flows.



In these cases, the maximum amount to be used shall not exceed net liquid assets of 40% of deposits.As of September 30, 2017, and taking into account the above-mentioned valuation criteria, the Bank records its holdings according to the following:

I) Holdings Recorded at Fair Market Value:These holdings include trading securities that were valued according to what is stated in item 2.2.2.2.1.a).

II) Holdings Recorded at their Acquisition Cost plus the I.R.R.:Holdings of government securities in Pesos and U.S. Dollars are recorded in this account. If the position of such securities as of September 30, 2017 with a face value of $2,617,302 had been stated at market value, an increase of $5,196 would be recognized in Shareholders' Equity.

III) Instruments issued by the Argentine Central Bank:a) At Fair Market Value:Valued as referred to in item 2.2.2.2.1.a).

b) At the Acquisition Cost plus the I.R.R.: Valued as referred to in item 2.2.2.2.1.b).If the position of these securities had been stated at market values as of September 30, 2017, a decrease of $33 would be recognized in Shareholders' Equity.Since these securities do not have volatility or present value published by the Argentine Central Bank, their market value was calculated based on the respective cash payments discounted by the internal rate of return of securities with similar characteristics and duration and with volatility published by said institution. The same criteria mentioned in the preceding items have been applied to the securities used in loans, guarantees, transactions to be settled and repo transactions, where appropriate.

2.2.2.2.2 - INVESTMENTS IN LISTED PRIVATE SECURITIESThese securities are valued at the period-end closing price, less estimated selling costs, when applicable.

2.2.2.3 - ACCRUAL OF ADJUSTMENTS, INTEREST, EXCHANGE RATE DIFFERENCES, PREMIUMS ON FUTURE TRANSACTIONS AND VARIABLE INCOME

For foreign and local currency transactions with a principal adjustment clause, as well as for those in which rates have been prearranged for terms up to 92 days, the accrual has been recognized on a linear basis. For local currency transactions at rates arranged for longer periods, interest has been accrued on an exponential basis.





14

For lending and borrowing transactions, which according to the legal and/or contractual conditions may be applicable, the adjustment by the C.E.R. has been accrued.For lending transactions, the Bank does not recognize interest accrual when debtors are classified in an irregular status.



2.2.2.4 - FINANCIAL TRUST DEBT SECURITIES AND PARTICIPATION CERTIFICATESDebt securities added at par have been recorded at their technical value; the remaining holdings were valued at their cost increased according to their internal rate of return. Participation certificates in financial trusts are valued by taking into account the share in the assets and net of liabilities, which stem from the financial statements of the respective trusts, as modified by the application of the Argentine Central Bank regulations, when applicable. Trusts, — with government-sector assets as underlying assets — have been valued pursuant to the valuation criteria described in item 2.2.2.2.1.b). In the particular case of the Participation Certificate in Galtrust I Financial Trust, it has been recorded according to what is stated in item 2.2.2.2.1.b3). As of September 30, 2017, there are no differences between the book value and the market value of such certificate.

2.2.2.5 - UNLISTED NOTES AND DEBT SECURITIESHoldings of these securities are valued at their acquisition cost increased on an exponential basis according to their internal rate of return.

2.2.2.6 - RECEIVABLES FROM FINANCIAL LEASESThese receivables are recorded at the present value of the sum of periodic installments and residual values previously established and calculated pursuant to the terms and conditions agreed upon in the corresponding financial lease agreements by applying their internal rate of return.

2.2.2.7 - EQUITY INVESTMENTSa. In Financial Institutions, Supplementary and Authorized ActivitiesArgentine:Galicia Valores S.A., Tarjetas Regionales S.A. and Procesadora Regional S.A. have been valued under the equity method, based on the last financial statements available. If applicable, the Shareholders’ Equity arising from the financial statements of the above-mentioned companies has been corrected by the effect the application of Argentine Central Bank regulations has had thereon. On January 12, 2017, the Bank's Board of Directors made the decision to accept the offer to buy all the shares in portfolio in Compañía Financiera Argentina S.A. and in Cobranzas y Servicios S.A. Such offer was made by Mr. Julio Alfredo Fraomeni and Galeno Capital S.A.U. The closing of the transaction is subject to the prior compliance with the conditions set out in the offer, such as the Argentine Central Bank’s approval.The price offered is subject to certain adjustment variables, the effect of which may vary according to the time when the transaction is finally closed with its approval by the regulatory authorities. Notwithstanding the foregoing, we believe that the economic result of the transaction will not cause a significant impact on the Bank’s shareholders’ equity.As of September 30, 2017, as stated above, the book value of such equity investments does not exceed the respective recoverable values.





15

The rest of the companies with supplementary activities have been valued at their acquisition cost restated as set forth in Note 2 item 2.2.1, plus, when applicable, stock dividends and uncollected cash.



b. In Other CompaniesArgentine:These are stated at their acquisition cost restated as mentioned in the above Note 2 item 2.2.1, plus, when applicable, stock dividends and uncollected cash.The investments in Sudamericana Holding S.A., Galicia Warrants S.A. and Net Investment S.A. (in liquidation) have been valued at the equity method, following the criterion applied by Grupo Financiero Galicia S.A., the Bank's controlling shareholder.The Shareholders’ Equity of such companies has been corrected by the effect the application of Argentine Central Bank regulations has had thereon.During this period, the Bank accepted an offer to buy its entire equity interest in Aguas Cordobesas S.A. The offer comprised 3,250,000 Class “E” shares, out of which 2,350,000 shares were freely transferable, and were settled, in part, by an initial cash payment of $38,335. In October 2017, the Government of the Province of Córdoba, in its capacity as grantor of the service delivered by such company, authorized the transfer of the remaining 900,000 Class “E” shares, in exchange for $9,665 in cash as consideration for the remaining balance.Foreign:These are stated at cost, plus stock dividends recognized at their face value. The procedure referred to in Note 2 item 2.2.2.1. has been applied for conversion into local currency.

2.2.2.8 - BANK PREMISES AND EQUIPMENT AND MISCELLANEOUS ASSETSBank premises and equipment and miscellaneous assets have been valued at their restated cost (see Note 2 item 2.2.1), plus the increase in value of the real estate property derived from a technical revaluation made in 1981, less accumulated depreciation.Financial leases that mainly transfer risks and benefits inherent to the leased property are recognized at the beginning of the lease either by the cash value of the leased property or the present value of cash flows established in the financial lease, whichever is lower. The depreciation of these assets is determined based on their estimated useful lives, expressed in months. A full month's depreciation is recognized in the month in which an asset is acquired, while no depreciation is recognized in the month in which it is sold or retired, over a maximum of 600 months for real estate property, 120 months for furniture and fixtures and no more than 60 months for the rest of assets.The residual value of the assets, taken as a whole, does not exceed their economic utilization value.

2.2.2.9 - OTHER MISCELLANEOUS ASSETSThese assets are valued at their restated acquisition cost (see Note 2 item 2.2.1), less the corresponding accumulated depreciation.The depreciation charge for these assets is calculated following the same criterion as that mentioned in item above.





16

2.2.2.10 - INTANGIBLE ASSETSIntangible assets have been valued at their restated acquisition cost (see Note 2 item 2.2.1), less the corresponding accumulated amortization, calculated proportionally over the estimated number of months of useful life.Amortization has been recognized on a straight-line basis over 60 months for “Organization and Development Expenses”.



2.2.2.11 – DERIVATIVE TRANSACTIONSFORWARD PURCHASE-SALE OF FOREIGN CURRENCY WITHOUT DELIVERY OF THE

UNDERLYING ASSETMercado Abierto Electrónico (M.A.E.) and Rosario Futures Exchange (RO.F.EX.) havetrading environments for the closing, recording and settlement of financial forward transactions carried out among its agents, including the Bank. The general settlement mode for these transactions is without delivery of the traded underlying asset. Settlement is carried out on a daily basis, in Pesos, for the difference, if any, between the closing price of the underlying asset and the closing price or value of the underlying asset corresponding to the previous day, the difference in price being charged to income. As of September 30, 2017, purchase and sale transactions totaled $18,645,454 and $19,342,191, respectively.Apart from that, transactions have been conducted directly with customers pursuant to the above-mentioned conditions, being the balances settled at the expiration date of the contract. As of September 30, 2017, purchase and sale transactions totaled $1,286,284 and $3,075,679, respectively.Accrued balances pending settlement are recorded in the category “Balances from Forward Transactions without Delivery of Underlying Asset to be Settled” under “Other Receivables Resulting from Financial Brokerage” and/or “Other Liabilities Resulting from Financial Brokerage”, where appropriate. INTEREST RATE SWAPSThese transactions are conducted within the environment created by the M.A.E., and the settlement thereof is carried out on a daily or monthly basis, in Pesos, for the difference between the cash flows calculated using a variable rate (Badlar for private banks for time deposits of 30 to 35 days) and the cash flows calculated using a fixed rate, or vice versa, on the notional value agreed, the difference in price being charged to income. As of September 30, 2017, the transactions performed amount to $1,000.Accrued balances pending settlement are recorded in the category “Balances from Interest Rate Swaps to be Settled” under “Other Receivables Resulting from Financial Brokerage” and/or “Other Liabilities Resulting from Financial Brokerage”, as appropriate.

2.2.2.12 - ALLOWANCES FOR LOAN LOSSESThese have been established based upon the estimated default risk of the Bank's credit portfolio, which results from an evaluation of debtors' compliance with their payment obligations, their economic and financial condition, and the guarantees securing their related transactions, in line with the Argentine Central Bank regulations.

2.2.2.13 - INCOME TAX The Bank determines income tax applying the effective rate to the estimated taxable income, pursuant to the Argentine Central Bank regulations.





17

In September 2017, Banco de Galicia y Buenos Aires S.A. filed with A.F.I.P. both actions for recovery of income tax paid in excess for fiscal years 2014 and 2016, totaling $433,815 and $944,338, respectively. These actions were grounded on case law that declared unconstitutional certain rules and regulations banning the application of the inflation adjustment for tax purposes, with the ensuing confiscatory effects.As of period-end, the Bank has not recorded balances in respect of the contingent assets stemming from the aforementioned actions.



2.2.2.14 - MINIMUM PRESUMED INCOME TAX The minimum presumed income tax is determined at the effective rate of 1% of the computable assets at fiscal year-end. Since this tax is supplementary to the income tax, the Company’s tax liability for each fiscal year is equal to the higher of the two taxes. However, if the minimum presumed income tax were to exceed income tax in a given fiscal year, such excess may be computed as a payment on account of the income tax that could be generated in any of the next ten fiscal years.The recognition of this right and its realization stem from the ability to generate future taxable income sufficient for offsetting purposes, in accordance with projections prepared in accordance with Argentine Central Bank regulations. As of September 30, 2017, the income tax determined was higher than minimum presumed income tax. Accordingly, a provision for the first of both taxes has been recorded.

2.2.2.15 – LIABILITIES – CUSTOMERS FIDELITY PROGRAM “QUIERO”The Bank estimates the value of the points assigned to customers through the “Quiero” Program. Said value is assessed by means of the use of a mathematical model that takes into account certain assumptions of exchange percentages, the cost for the exchanged points based on the combination of available products and the preferences of the Bank’s customers, as well as the expiration term of the customers’ non-exchanged points.As of September 30, 2017, the liabilities recorded under “Miscellaneous Liabilities – Others” for its customers’ non-exchanged points amounted to $490,249.

2.2.2.16 - SEVERANCE PAYMENTSThe Company directly charges severance payments to expenses. The amounts that the Bank may possibly have to pay for labor lawsuits are covered by a provision, which is recorded under "Liabilities - Provisions for Severance Payments".

2.2.2.17 – LIABILITIES – OTHER PROVISIONSAs of September 30, 2017, Banco de Galicia y Buenos Aires S.A. has set up provisions for labor, legal, fiscal contingencies and other miscellaneous risks that are likely to occur.

2.2.2.18 - SHAREHOLDERS' EQUITYShareholders' equity accounts are restated as mentioned in Note 2 item 2.2.1, except for "Capital Stock", which has been kept at its original value. The movements for the fiscal year are recorded in historical currency. The adjustment derived from such account restatement is disclosed in the "Adjustments to Shareholders' Equity" account.

2.2.2.19 - ACCOUNTING ESTIMATESThe preparation of financial statements at a given date requires the Bank to make estimates and assessments that affect the amounts of assets and liabilities reported and the disclosure of





18

contingent assets and liabilities, as well as the income and expenses accrued for the period. In this regard, the Bank makes estimates in order to calculate, at any given moment, for example, the recoverable value of assets, the allowances for loan losses and provisions for other contingencies, the depreciation charges and the income tax charge. Future actual results may differ from estimates and assessments made as of the date that these financial statements were prepared.



2.3 - DIFFERENCES BETWEEN THE ARGENTINE CENTRAL BANK REGULATIONS AND ARGENTINE

GAAP IN FORCE IN BUENOS AIRESThe Bank has prepared these financial statements following the valuation and disclosure criteria established by the Argentine Central Bank regulations, which differ in certain aspects from Argentine GAAP in force in Buenos Aires. In addition, the Bank has identified and quantified the effect on the financial statements derived from the different valuation and disclosure criteria, except that the quantification cannot be made for unfeasibility reasons.The main differences between the Argentine Central Bank regulations and Argentine GAAP in force in Buenos Aires are detailed below:

2.3.1 - ACCOUNTING FOR INCOME TAX ACCORDING TO THE DEFERRED TAX METHOD

The Bank determines the income tax charge by applying the effective tax rate to the estimated taxable income, without considering the effect of any temporary differences between book and taxable income.Pursuant to Argentine GAAP in force in Buenos Aires, the income tax must be recognized using the deferred tax method and, therefore, deferred tax assets or liabilities must be recognized based on the aforementioned temporary differences. In addition, unused tax loss carry-forwards or tax credits that may be offset against future taxable income should be recognized as deferred assets, provided that taxable income is likely to be generated.As of September 30, 2017, the application of this criterion, based on projections prepared by the Bank, would determine deferred tax assets amounting to $328,695.

2.3.2 - VALUATION OF ASSETS WITH THE NON-FINANCIAL PUBLIC AND PRIVATE SECTORS

2.3.2.1 - GOVERNMENT SECURITIES Argentine Central Bank regulations set forth specific valuation criteria for government securities recorded at their acquisition cost plus the I.R.R., which are described in Note 2 item 2.2.2.2.1.b) to the financial statements. Pursuant to Argentine GAAP in force in Buenos Aires, the above-mentioned assets must be valued at their current value. Differences derived from the application of the different valuation criteria are detailed in the above-mentioned Note.

2.3.2.2 - ALLOWANCES FOR RECEIVABLES FROM THE NON-FINANCIAL PUBLIC SECTORCurrent regulations issued by the Argentine Central Bank on the establishment of allowances provide that credits against the public sector are not subject to allowances for loan losses. Pursuant to Argentine GAAP, those allowances must be estimated based on the recoverability risk of the assets.





19

2.3.3 – CONSOLIDATION OF COMPAÑÍA FINANCIERA ARGENTINA S.A. AND COBRANZAS Y SERVICIOS S.A.

In accordance with applicable Argentine GAAP, where equity investments in controlled companies are held for sale or disposal within a year, such investments should be excluded from consolidation. According to Note 2.2.2.7, the Bank agreed to a tender offer involving all shares in portfolio of Compañía



Financiera Argentina S.A. and Cobranzas y Servicios S.A., subject to the prior fulfillment of the conditions set forth in the tender offer, including the Argentine Central Bank’s approval.Pursuant to the Argentine Central Bank regulations, as a result of the maintenance of a

controlling equity interest, such companies are consolidated with the Bank on a line-by-line basis.

NOTE 3: CRITERIA TO ALLOCATE ASSETS, LIABILITIES AND SHAREHOLDERS' EQUITY. CAPITAL STOCK REDUCTION

a. Column I: Special Balance Sheet as of September 30, 2017Relates to the balances arising from the Special Balance Sheet of Banco de Galicia y Buenos Aires S.A. as of September 30, 2017.

b. Column II: Shareholders' Equity of Tarjetas Regionales and Shareholders' Equity Allocation as of September 30, 2017

The Bank's shareholders' equity that is spun off is solely and exclusively made up of 829,886,212 ordinary book-entry Class "A" and "B" shares of Tarjetas Regionales S.A., representing 77% of such company's capital stock, which will be transferred to our controlling company, Grupo Financiero Galicia S.A. No liabilities of the Bank are included in the spin-off. The book value of the shares that are part of the Bank's spun-off shareholders' equity amounts to$5,453,716, as detailed below:

Shareholders' Equity of Tarjetas Regionales S.A.as per Special Balance Sheet as of September 30, 2017 7,678,728.-

Adjustments to Arrive to Argentine Central Bank Regulations (595,980.-)

Shareholders' Equity Adjusted to Argentine Central Bank's Regulations 7,082,748.-

Equity Method Value (77%) 5,453,716.-

Such value represents about 23% of the Bank's shareholders' equity.The shareholders' equity decrease caused by the spin-off of a portion of the Bank's shareholders' equity will be allocated to a capital stock reduction in the same percentage (23%), which entails a decrease of $127,425 and the resulting cancellation of 127,424,621 ordinary Class "B" shares of one vote each and with a face value of $1.The remaining book value, i.e., the book value of the shares of Tarjetas Regionales S.A., which is spun off, less the amount of reduction of the Bank's capital, i.e., the remainder of $5,326,291 will be allocated to the decrease in the following accounts:

Additional Paid-In Capital: $84,363.-





20

Adjustments to Shareholders' Equity: $137,164.-

Legal Reserve: $830,508.-

Discretionary Reserve: $4,274,256.-

c. Column III: Balance Sheet of Shareholders' Equity Not Spun off as of September 30, 2017It has been determined by the difference between Columns I and II.





21

INDEPENDENT PUBLIC ACCCOUNTANTS' REPORT ON COMPLIANCE WITH THE C.N.V.'S REQUIREMENTS IN RELATION TO THE SPECIAL BALANCE SHEET FOR SPIN-OFF PURPOSES

To the Shareholders, Chairman and Directors ofBanco de Galicia y Buenos Aires S.A.Legal Domicile: Tte. Gral. Juan D. Perón 430Buenos AiresC.U.I.T. No. 30-50000173-5

Purpose of the Engagement

We have been engaged by Banco de Galicia y Buenos Aires S.A. (hereinafter "the Bank") to issue a compliance report on the special balance sheet for spin-off purposes as of September 30, 2017, as required by Part XI, Section 88, Subsection 2) of General Corporations Law and by Title II, Chapter X, Part I, Section 3, Subsection f) of National Securities Commission's regulations (hereinafter "the C.N.V."). Such special balance sheet for spin-off purposes (hereinafter "the Information Subject to the Engagement") has been prepared by the Bank's Management in case the Shareholders' Meeting of Banco de Galicia y de Buenos Aires S.A. decides on the spin-off thereof. Such information is included in the Schedule attached to this compliance report, which has been signed by us for identification purposes. Responsibility of the Bank's Management

The Bank's Management is responsible for the preparation and presentation of the Information Subject to the Engagement, as required by General Corporations Law No. 19550 and by the C.N.V.'s regulations, as detailed in the first paragraph of this report.

Responsibility of the Public Accountant

Our responsibility consists in issuing this compliance report, based on our professional work, which is specified in the following paragraph, to meet the requirements set forth in General Corporations Law No. 19550

and C.N.V.'s regulations, as detailed in the first paragraph of this report.

Professional Work

Our professional work was conducted in conformity with the standards established in Technical Pronouncement No. 37 of the Argentine Federation of Professional Councils in Economic Sciences (hereinafter, "TP 37") and with the specific standards established in Resolution MD No. 816/15 of such Federation's Board, adopted by the Professional Council in Economic Sciences of Buenos Aires by Resolution CD No. 59/15 and consisted in applying certain procedures that we deemed adequate for the regulator's purposes as regards the Company's compliance with the requirements established by the standards for the spin-off of companies of General Corporations Law No. 19550 and by the C.N.V., as detailed in the first paragraph of this report. TP 37 requires that we meet the ethical requirements, as

well as that we plan and perform our work in such a manner that it allows us to issue this compliance report.

The procedures detailed below have been applied to records and documentation the Bank furnished to us. Our work was based on the assumption that the information provided is accurate, complete, legitimate and free from fraud and other illegal acts, for which we have taken into consideration its formal appearance and structure.

The procedures performed only consisted in:

a) Verifying that the amounts included in the “Column I Special Balance Sheet as of September 30, 2017 (Note 3)” column arise from Banco de Galicia y Buenos Aires S.A.'s special balance sheet as of September 30, 2017, prepared according to the accounting framework established by the Argentine Central Bank (B.C.R.A.), transcribed into the Bank's Inventory and Balance Sheet Book No. 36, officially stamped under No. 22832-16, on April 19, 2016 by the Corporation Control Authority (I.G.J.), on folios 130 to 151, approved by the Bank's Board of Directors, on which we issued our audit report on November 9, 2017, which included qualifications due to the non-presentation of certain accounting information required by the accounting framework established by the B.C.R.A.

b) Verifying that the amounts included in the "Column II Shareholders' Equity of Tarjetas Regionales and Shareholders' Equity Allocation as of September 30, 2017 (Note 3)” column as regards the shareholders' equity of Tarjetas Regionales S.A. arise from the special balance sheet of Tarjetas Regionales S.A. as of September 30, 2017, prepared in conformity with International Financial Reporting Standards ("IFRS"), with the adjustments referred to in Note 3 to the Bank's special balance sheet for spin-off purposes as of September 30, 2017. The special balance sheet of Tarjetas Regionales S.A. was transcribed into the Company's Inventory and Balance Sheet Book No. 13, certified on September 12, 2017 by the Bureau of Legal Entities of the Ministry of Government, Work and Justice of the Province of Mendoza on folios 87 to 101, approved by the Company's Board of Directors, on which an audit report was obtained on November 9, 2017, which included qualifications due to the non-presentation of certain accounting information required by IFRS.

c) Verifying that the information specified on the "Column II Shareholders' Equity of Tarjetas Regionales and Shareholders' Equity Allocation as of September 30, 2017 (Note 3)” column as regards the shareholders' equity allocation arises from applying the allocation criteria described in Note 3 to the Bank's special balance sheet for spin-off purposes as of September 30, 2017.

d) Verifying that the "Column III Balance Sheet of Shareholders' Equity Not Spun off as of September 30, 2017 (Note 3)” column arises from the arithmetical subtraction of the "Column I Special Balance Sheet as of September 30, 2017 (Note 3)” and “Column II Shareholders' Equity of Tarjetas Regionales and Shareholders' Equity Allocation as of September 30, 2017 (Note 3)” columns.

Professional Assurance

Based on the work performed, the scope of which is described in the preceding paragraph, and as regards our field of competence, in our opinion, Banco de Galicia y Buenos Aires S.A. meets the requirements of Part XI, Section 88, Subsection 2. of General Corporations Law No. 19550 and by Title II, Chapter X, Part I, Section 3, Subsection f) of C.N.V.'s regulations with respect to the spin-off of companies.Additionally, as called for by the regulations in force, we report that:

a) The Bank's special balance sheet for spin-off purposes arises from accounting record systems kept in all formal respects as called for by prevailing legal regulations, which systems maintain the security and integrity conditions based on which they were authorized by the National Securities Commission.

b) As of September 30, 2017, the accrued liabilities for employer and employee contributions owed to the Argentine Integrated Social Security System, which arise from the Bank's respective accounting records, amount to $104,015,884.23, none of which was due and payable as of that date.

Restricted Use of the Compliance Report

Our compliance report has been exclusively prepared for its use by the Bank's Management, for its filing with the C.N.V., the B.C.R.A. and the I.G.J., as required by Part XI, Section 88, Subsection 2. of General Corporations Law No. 19550 and by Title II, Chapter X, Part I, Section 3, Subsection f) of C.N.V.'s regulations, as regards the proceedings related to the spin-off of companies and, therefore, should not be used, referred to or distributed for any other purpose.

Buenos Aires, November 9, 2017.

PRICE WATERHOUSE & CO. S.R.L.

(Partner)C.P.C.E.C.A.B.A. Vol. 1 Fo. 17

Santiago J. MignonePublic Accountant (UBA)

C.P.C.E.C.A.B.A. Vol. 233 Fo. 237

SPECIAL REPORT OF THE SUPERVISORY SYNDICS' COMMITTEE ON THE SPECIAL BALANCE SHEET FOR SPIN-OFF PURPOSES IN COMPLIANCE WITH THE C.N.V.'S REQUIREMENTS

To the Directors and Shareholders ofBanco de Galicia y Buenos Aires S.A.Legal Domicile: Tte. Gral. Juan D. Perón 430Buenos AiresC.U.I.T. No. 30-50000173-5

1. In our capacity as members of the Supervisory Syndics' Committee of Banco de Galicia y Buenos Aires S.A.(hereinafter "the Bank"), we will issue a compliance report on the special balance sheet for spin-off purposes, as required by Part XI, Section 88, Subsection 2) of General Corporations Law and by Title II, Chapter X, Part I, Section 3, Subsection f) of National Securities Commission's regulations (hereinafter "the C.N.V."). Such special balance sheet for spin-off purposes (hereinafter "the Information Subject to the Engagement") has been prepared by the Bank's Management in case the Shareholders' Meeting of Banco de Galicia y de Buenos Aires S.A. decides on the spin-off thereof. Such information is included in the Schedule attached to this compliance report, which has been signed by us for identification purposes.

2. The Bank's Board of Directors is responsible for the preparation and presentation of the Information Subject to the Engagement, as required by General Corporations Law No. 19550 and by the C.N.V.'s regulations, as detailed in the first paragraph of this report.

3. Our responsibility consists in issuing this compliance report, based on our professional work, which is specified in the following paragraph, to meet the requirements set forth in General Corporations Law No. 19550 and C.N.V.'s regulations, as detailed in the first paragraph of this report.

4. Our work was conducted in accordance with standards applicable to syndics in Argentina. For purposes of our professional work, we have reviewed the work performed by the Bank's external auditors, Price Waterhouse & Co. S.R.L., who issued their unqualified audit report on November 9, 2017. Such external auditors conducted their work in conformity with the standards established in Technical Pronouncement No. 37 of the Argentine Federation of Professional Councils in Economic Sciences

27

(hereinafter, "TP 37") and with the specific standards established in Resolution MD No. 816/15 of such Federation's Board, adopted by the Professional Council in Economic Sciences of Buenos Aires by Resolution CD No. 59/15 and consisted in applying certain procedures as regards the Bank's compliance with the requirements established by the standards for the spin-off of companies of General Corporations Law No. 19550 and by the C.N.V., as detailed in the first paragraph of this report. Our review included verifying the planning of the work, as well as the nature, scope and timing of the procedures applied and the results of the procedures performed by those professionals. The procedures performed by the auditors have been applied to records and documentation the Bank furnished to them. Their work was based on the assumption that the information provided is accurate, complete, legitimate and free from fraud and other illegal acts, for which they have taken into consideration its formal appearance and structure.

5. The procedures performed only consisted in:

a) Verifying that the amounts included in the “Column I Special Balance Sheet as of September 30, 2017 (Note 3)” column arise from Banco de Galicia y Buenos Aires S.A.'s special balance sheet as of September 30, 2017, prepared according to the accounting framework established by the Argentine Central Bank (B.C.R.A.), transcribed into the Bank's Inventory and Balance Sheet Book No. 36, officially stamped under No. 22832-16, on April 19, 2016 by the Corporation Control Authority (I.G.J.), on folios 130 to 151, approved by the Bank's Board of Directors, on which PriceWaterhouse & Co S.R.L. issued its audit report on November 9, 2017, which included qualifications due to the non-presentation of certain accounting information required by the accounting framework established by the B.C.R.A.

b) Verifying that the amounts included in the "Column II Shareholders' Equity of Tarjetas Regionales and Shareholders' Equity Allocation as of September 30, 2017 (Note 3)” column as regards the shareholders' equity of Tarjetas Regionales S.A. arise from the special balance sheet of Tarjetas Regionales S.A. as of September 30, 2017, prepared in conformity with International Financial Reporting Standards ("IFRS"), with the adjustments referred to in Note 3 to the Bank's special balance sheet for spin-off purposes as of September 30, 2017. The special balance sheet of Tarjetas Regionales S.A. was transcribed into the Company's Inventory and Balance Sheet Book No. 13, certified on September 12, 2017 by the Bureau of Legal Entities of the Ministry of Government, Work and Justice of the Province of Mendoza on folios 87 to 101, approved by the Company's Board of Directors, on which an audit report was obtained on November 9, 2017, which included qualifications due to the non-presentation of certain accounting information required by the IFRS.

c) Verifying that the information specified on the "Column II Shareholders' Equity of Tarjetas Regionales and Shareholders' Equity Allocation as of September 30, 2017 (Note 3)” column as regards the shareholders' equity allocation arises from applying the allocation criteria described in Note 3 to the Bank's special balance sheet for spin-off purposes as of September 30, 2017.

d) Verifying that the "Column III Balance Sheet of Shareholders' Equity Not Spun off as of September 30, 2017 (Note 3)” column arises from the arithmetical subtraction of the "Column I Special Balance Sheet as of September 30, 2017 (Note 3)” and “Column II Shareholders' Equity

28

of Tarjetas Regionales and Shareholders' Equity Allocation as of September 30, 2017 (Note 3)” columns.

6. Based on the work performed, the scope of which is described in the preceding paragraph, and as regards our field of competence, in our opinion, Banco de Galicia y Buenos Aires S.A. meets the requirements of Part XI, Section 88, Subsection 2. of General Corporations Law No. 19550 and by Title II, Chapter X, Part I, Section 3, Subsection f) of C.N.V.'s regulations with respect to the spin-off of companies.

7. Furthermore, we report that the accompanying special balance sheet for spin-off purposes stems from accounting records kept, in all formal aspects, in compliance with legal regulations prevailing in Argentina.

Buenos Aires, November 9, 2017.

Norberto D. CorizzoSupervisory Syndics’

Committee

29

notas al balance especial de escision al 30 …backend.gfgsa.com/upload/bgba balance especial...

Documents