Draft:Banco Galicia

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  • Comment: Notable Argentine bank, but this draft needs a lot more references. The article on the Spanish Wikipedia is decently referenced and many of those sources could be used here. gobonobo + c 11:10, 10 April 2024 (UTC)
Banco de Galicia y Buenos Aires S.A.U.
Company typeSociedad Anónima
IndustryFinance and Insurance
Founded1905; 119 years ago (1905)
HeadquartersBuenos Aires, Argentina
Key people
Sergio Grinenco, (Chairman)
ProductsBanking
Number of employees
6.118
ParentGrupo Financiero Galicia S.A.
Websitebancogalicia.com

Banco Galicia is an Argentinian private bank belonging to the Galicia Financial Group. Founded in 1905 as Banco de Galicia y Buenos Aires, the bank has become one of the most significant entities in the country, offering a wide range of financial services to individuals, companies, and corporations.[1] Its shares started trading on the Buenos Aires Stock Exchange in 1907.

Galicia branch in Buenos Aires.

History[edit]

Galicia Plaza, in La Chacarita, Buenos Aires.

Banco Galicia was founded in 1905 by a group of businessmen from the Galician community in Argentina, and in 1907 its shares began trading on the Buenos Aires Stock Exchange. In 2000, Grupo Financiero Galicia was created and became the controlling company of the Bank, acquiring 100% of its shares in 2014.[2]

The commercial network grew significantly at the end of the 1950s and continued to expand to the 326 branches it has today, developing its potential and earning its reputation as an innovative bank, currently considered a leader and reference within the national banking industry.

In the late 1950s, Banco Galicia launched the capital investment fund FIMA Acciones and founded the predecessor of the asset manager Galicia Asset Managment.

As part of its growth strategy, Banco Galicia began to expand into rural areas in the interior of the country, where it was believed that there was high growth potential. Access to financial services in the interior was limited compared to Buenos Aires and its surroundings, and its population used fewer banking services.

In 1979, it launched the first ATM network in the country, together with 4 of the main banks in the financial system. In order to expand its network throughout Argentina, in 1986 Banco Galicia offered to open 13 branches with ATMs in the province of Santiago del Estero in exchange for placing the Bank's characteristic symbol on the province's flag, as well as It is how today the cross of Santiago can be seen on the provincial flag.

Between 1995 and 1999, Banco Galicia acquired shareholdings in various entities and formed several non-banking companies that provided financial services -mainly through the issuance of own-brand credit cards- and insurance.

In 2000, it launched the first Internet financial portal in Argentina and in 2006 the first payment service through a bank's cell phone in Argentina.

After being significantly affected by a deep economic and financial crisis in 2001 and 2002, Banco Galicia managed to recover to resume its leadership position. It is currently one of the main banks in the Argentine financial system, being the most important among those in the private sector with national controlling capitals.[3]

On July 3, 1907, the bank's shares began trading on the Buenos Aires Stock Exchange, attracting nearly 3,300 initial shareholders. Shortly thereafter, the bank had three branches in Buenos Aires, and in 1910, one was established in Montevideo, Uruguay. In 1921, it began offering fixed-term deposits. During the 1930s, it experienced a decline due to the Great Depression but recovered in the following decade.

One of the early presidents of the bank, in 1926, was Manuel Escasany, a Catalan immigrant who established a chain of watch and jewelry stores. His son Eduardo, an engineer, became president in 1948 and remained in that position until his death in 1972. During the 1940s-1950s, he invited two of Argentina's wealthiest families (the Braun Menéndez and the Ayerza) to become shareholders of the bank. The Braun Menéndez family controlled the La Anónima supermarket chain, and the Ayerza family were cattle ranchers. In 1948, Eduardo was joined in the vice presidency by Oscar Braun Menéndez and Hernán Ayerza. Manuel's grandson, Eduardo José, was the last Escasany to serve as president of the bank, taking office in 1989 and retiring in 2002 (although he did not lose the majority of shares).[4][5]

In 1982, it attempted to open a branch in London, United Kingdom, but the process was interrupted by the Malvinas War.[6] Galicia was the first Argentine entity to access European and U.S. stock markets in the early 1990s. In 1993, it conducted an international public offering of its shares in the United States and Europe. The following year, it opened a branch in New York City. Subsequently, the bank's shares began trading on the NASDAQ in the United States in the form of American Depositary Shares (ADS).

As of March 2016, the bank had 261 branches in Argentine territory.

Sale of HSBC operation in Argentina in 2024[edit]

On April 9, 2024, HSBC reported that it sold its business in Argentina for $550 million to Grupo Financiero Galicia and Banco Galicia. This will make Galicia the country's leading private financial institution and the second largest by size behind Banco Nación.[7][8]

The operation includes the sale of all of HSBC Argentina's businesses, including the Bank, Asset Management, and its insurance company, in addition to $100 million in subordinated debt issued by HSBC Bank Argentina.[9][10]

"Galicia will acquire all of HSBC Argentina's businesses including the bank, asset management and insurance along with US$100 million of subordinated debt issued by HSBC Bank Argentina and held by other HSBC entities, for a consideration of US$ 550 million, which will be adjusted by the business results and the fair value gains or losses of HSBC Argentina's securities portfolio during the period between December 31, 2023 and the closing of the operation," detailed the official announcement

HSBC Holdings plc estimates that it will assume an adverse pre-tax impact of $1 billion (€922 million) following the reclassification of the business as held for sale in the first quarter of 2024. From the date of sale, the transaction is expected to be completed within the next 12 months, as some regulatory approvals still need to be achieved.

References[edit]

  1. ^ "Banco Galicia inaugurará una nueva sucursal en Cañuelas". totalmedios.com. 31 March 2016.
  2. ^ "Grupo Financiero Galicia S.A. History". fundinguniverse.com.
    Cite: International Directory of Company Histories, Vol.63. St. James Press, 2004.
  3. ^ "¿Eduardo, el último Escasany en presidir el banco?". Clarín. 9 March 2002.
  4. ^ "El Banco Galicia apuesta al consumo: compró Efectivo Sí". La Nación. 3 June 2009.
  5. ^ "Banco Galicia anunció su intención de que Tarjetas Regionales salga a la bolsa". iProfesional. 5 March 2012.
  6. ^ "Cómo es por dentro el mayor banco argentino". Clarín. 6 September 1998. Archived from the original on 2 August 2017. Retrieved 1 August 2017.
  7. ^ "HSBC sells Argentina division to Banco Galicia for US$550 million". Buenos Aires Times. 9 April 2024.
  8. ^ "HSBC to take $1bn hit on sale of Argentina unit". Financial Times. 9 April 2024.
  9. ^ "HSBC takes $1 bln hit from Argentina sale as Asia pivot continues". Reuters. 9 April 2024.
  10. ^ "HSBC agrees to sell off its Argentina business". BBC. 9 April 2024.

External links[edit]


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