onGoinG proGress For 10 years - Galicia Sustentablegaliciasustentable.com/IS2014/EVbranch no 116 san...

sustainabilityreport

2014

onGoinG proGress For 10 years

branch no 116san salvador de Jujuy Jujuy - argentina

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ENVIRONMENT

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INNOVATION

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COMMUNICATIONONGOING IMPROVEMENTPREVENTION

TRAININGASSISTANCE

CULTUREQUALITY

COMMUNITYORGANIZATION

SERVICESOCIETYTRANSMISSION

LEADERS

SOCIAL INVESTMENT

SUSTAINABILITY

DRIVING FORCE OF CHANGE

PROJECT

ADHERENCE

CODE OF CONDUCT

STRATEGY

GROWTH

STAKEHOLDERS

CUSTOMERS

EMPLOYEES

SUPPLIERS

BASIC PRINCIPLESAGREEMENTS

HEALTH

wWe celebrate our achievements in the last 10 years and assume the business challenGes reGardinG sustainability.

under a careFul and analytic view, our aim is to build –together With our shareholders, customers, employees , suppl iers and the community– a responsible, committed and transparent bank, capable oF GeneratinG neW opportunities For the economic , social and environmental development oF our country.

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letter Fromthe chairman

letter From the chieF eXecutive oFFicer

introductionto banco Galicia

corporateGovernance

testimonies

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banco Galicia as a social actor

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TABLE OF CONTENTS

this report contains the main issues related to banco Galicia’s sustainability management in 2014, selected by the bank’s stakeholders jointly with the vision of the company’s senior officers. each chapter begins with a summary of the work done with the stakeholder in particular, highlighting the most relevant activity during the year.to know more about the bank’s sustainability management, please visit our website galiciasustentable.com/is2014, where detailed information can be found.

paG.32

04 ● 2014 SuSTAiNABiLiTy REpORT

sergio Grinenco obtained a degree in economics at the universidad católica argentina. he joined the bank in 1977 in the Financial division. sometime later, he was assistant manager of the strategic planning division; then, he was in charge of Galicia capital markets s.a.; and, afterwards, he headed the institutional investors relations department. in 1998 he was appointed the bank’s control manager (cFo). since 2002, he has been part of the bank’s board of directors, serving as vice-chairman between 2003 and 2012, after which he was appointed chairman. sergio is an enthusiastic person, who is open to change and values freedom and respect. Father of four and grandfather of four, sergio defines banco galicia as a company with values that is highly committed to people.

nant economy. this Weak perFormance Was also paired With 31.2% eXchanGe rate devaluation, While the inFlation rate –as measured by the indec (argentine institute of statistics and census)– reached 23.9% –a considerably lower rate than that estimated by private Firms. monetary aGGreGates increased nominally, since the arGentine central bank’s monetary base eXperienced a 22.5% eXpansion durinG the year, mainly due to the FinancinG Granted to the national treasury, as it has been observed in recent years.Within this conteXt oF nominal GroWth oF Financial inter-mediation, toGether With a certain level oF Weakness in the economic activity, private-sector bank deposits increased by 31.6%, While loans GreW by 20%.

the bank –on a consolidated basis with its subsidiaries– also eXperienced such a systemic GroWth, as it increased its loans to the private sector by 20%, reachinG ps. 79,000 mil-lion at year-end, while deposits increased by 25.8% during the same period. this Way, the bank achieved an estimated market share oF 8.8% reGardinG bankinG intermediation both in deposits From and loans to the private sector, thus maintaining its leading position among domestic-capital private banks.

the bank’s consolidated proFits For 2014 amounted to ps. 3,158 million –well over the amount of ps. 1,837 million ob-tained during 2013–, due to a 35.1% growth in operating income, as compared With a 23.5% increase in administra-tion eXpenses, and a 35.7% in the provision For loan losses. these results shoW an eFFiciency rate improvement and a Good credit portFolio manaGement in vieW oF the economic conteXt described above and the GroWinG oFFicial reGula-

it is a Great pleasure to present our tenth sustainability report, Where We share With our customers, employees, sup-pliers, shareholders and the community the results oF our actions in terms oF economic, social and environmental perFormance throuGhout 2014. this report has been pre-pared With the valuable help oF an interdisciplinary Group that represents diFFerent areas oF the bank, as Well as the Feedback received From our stakeholder Groups throuGh diFFerent communication channels.the 2014 international economic conteXt Was marked by the appreciation oF the us dollar compared With the rest oF the main currencies, as Well as a siGniFicant doWnFall in commodities’ prices (approx. 18%); particularly oil (ap-prox. 46%). improved economic perspectives in developed countries –which are generally oil importers– increased the capital FloW into those countries, to the detriment oF emerGinG economies. For eXample, the price oF the main arGentine eXport products dropped an averaGe oF 10% as compared With the previous year, as inFormed by the arGen-tine central bank.

accordinG to private estimations, the arGentine economy’s General activity level eXperienced a decline in relation to 2013, Whereas oFFicial statistics shoW a virtually staG-

G4-1

2014 SuSTAiNABiLiTy REpORT ● 05

sergio grinenco chairmanbanco de Galicia y buenos aires s.a.

LETTER FROMTHE CHAiRMAN

this document contains a description oF the bank’s activi-ties reGardinG the most important aspects, identiFied and validated in the materiality analysis, FolloWinG the Gri G4 Guidelines and other international standards. thus, We developed this report by complyinG With the requirements oF the “in accordance” comprehensive option oF the Gri G4 Guidelines as Well as With the 10 principles oF the united nations Global compact, consolidatinG, in turn, the commu-nication on proGress item.

For 2015 We have neW commercial and Financial challenG-es, as Well as operatinG and technoloGical Goals, in order to continue to provide comprehensive and excellence-driv-en Financial services, and contributinG to the sustainable development oF our country.We thank our employees, shareholders, customers, suppliers and the community in General For your trust and closeness.

tion oF interest rates, commissions, ForeiGn eXchanGe rates, capital requirements, and mandatory credit assistance amounts to certain customer seGments.

at fiscal year-end, the total staff of the bank and its sub-sidiaries Was above 11,700 employees, providinG services to more than 8 million customers and manaGinG 3 million de-posit accounts and 11.9 million credit cards.

in relation to our sustainability strateGy, We continued to strenGthen our environmental manaGement, FosterinG proJects that reduce to a minimum the impact oF our opera-tions. durinG 2014, We Focused on completinG the survey on enerGy consumption by our branches, as Well as carryinG out awareness and follow-up actions related to the iso 14001-certified environmental management system.

reGardinG our social investment, We continue to consoli-date our proGrams For the community in relation to educa-tion, Work promotion and health, WorkinG across diFFer-ent areas oF the bank and aliGned to its business strateGy. additionally, this year We developed a GeoreFerential map, a 2.0 communication and manaGement tool that alloWs For communicatinG and localizinG our initiatives and allianc-es With social orGanizations.

G4-1

LETTER FROM THE CHiEF EXECuTiVE OFFiCER

daniel llambías is argentinean and a national public accountant graduated from universidad de buenos aires. he has been working at the bank for 50 years. he started at the Foreign trade division. then he held positions in different areas until he was appointed regular director in september 2001. in 2009 he was appointed chief executive officer of the bank, position he currently holds. he is married and proud of being a father and a grandfather.


Daniel llambíaschieF eXecutive oFFicer

durinG the last 10 years, economic, so-cial, technoloGical and environmental Factors chanGed the development oF communities around the Globe, alloWinG citizens to play a more active role, and more demandinG toWards the private sector.

always focusing on global trends –which set the north towards sustainable development–, at banco Galicia We Gradually adJusted our bu-siness strateGy in order to encouraGe an insti-tutional culture that is customer-centered.

We are convinced that chanGes and challenGes Foster collaboration and synerGy. thereFore, in 2014 We rotated 5 division manaGers into neW divisions, so that they Would share all their know-how, expertise and vision with another division, thus resultinG in the improvement oF our orGanization. also, based on our com-mitment to comply With any and all reGula-tions currently in Force, both issued by reGula-tinG aGencies and by the bank, We created the compliance division, in order to ensure com-pliance With such reGulations and avoid any penalties or losses, as Well as minimize opera-tinG errors that miGht have an impact on the bank's results.

our intention is still to Generate alliances With commercial partners, institutions and orGani-zations, so as to continue providinG diFFeren-tial services based on our deep knoWledGe oF all our stakeholders.

G4-2

iNTROduCCióNA BANCO GALiCiA


iNTROduCTiON TOBANCO GALiCiA

ACCOUNTABILITY AS A KEY FACTOR INMANAGEMENT

We publish our tenth Sustainability Report, a tool that has witnessed the evolution of our sustainability management throughout all these years. As in each fiscal year, this publication has been made possible due to the support of all the divisions of the Bank that participate in a systematized process, aligned with international standards. Thus, the Report not only communicates to our shareholders, customers, employees, suppliers and the community in general

the policies, practices and programs we carry out to generate social value, as well as our results regarding environmental issues; it also represents a key tool to analyze the most relevant issues to be managed and make a balance of the year to know where we stand in terms of sustainability, while it serves as a guide to know what should be our focus upon developing actions for the benefit of all.

The Sustainability Report was prepared pursuant to the comprehensive “In accordance" option requirements established by G4 Guidelines of the Global Reporting Initiative01 (GRI), including its Financial Services Sector Supplement. We also used the Social Balance directives issued by IBASE02 , the AA1000SES03 Accountability standard04, the Social Responsibility ISO 26000 standard and the 10 principles of the United Nations Global Compact.

01. globalreporting.org 02. ibase.br/es03. accountability.org/aa1000ses04. banco Galicia acknowledges the iso 26000 standard as a reference document that provides guidance with regard to social responsibility. iso 26000. iso.org/iso/social_responsibility

G4-18, G4-DMA

NUESTRO MODELO DE

MATERIALIDAD

IDENTIfIcATION of key aspects and issues for the Bank, based on the impact of our actions on both the internal and the external public and on their activities. preparation of a list of issues related to the financial industry’s sustainability management.

SELEcTIONof issues from the list that are most relevant to the Bank. At this stage, the participants are the following: the Operational Group, the Community of Leaders, the Board of directors and our Stakeholders.

VALIDATIONof issues, first by the Operational Group, and then by the Community of Leaders and the Board of directors, in order to ensure that the Bank’s 2014 most relevant sustainability actions are included in the Report.

ASSURANcE of the contents of the Report: the internal assurance is performed by the Board of directors, the Chairman, the CEO and the division Managers; the external assurance is carried out by the consulting company pWC in Argentina. We also carried out a telephone survey on stakeholders in order to validate the materiality analysis performed during this process and obtain feedback and expectations with the purpose of a permanent improvement.


MATERIALITY ANALYSIS

Essentially, the materiality analysis considers which are the strategic issues to be managed by the company together with its stakeholders. When an organization clearly understands its number-one priorities, then the business is capable of developing a sustainability strategy that may have a higher economic, social and environmental impact on all types of public.

Thus, in Banco Galicia, defining the most relevant aspects is the first step for the Report to become a key management tool. This process –which receives feedback year after year– relies on the participation of employees from all the company’s divisions that are part of the Operational Group, the Community of Leaders05, the Board of Directors and our stakeholders06. In this way, the analysis represents both our internal priorities and the concerns of external stakeholders.

G4-18, G4-26, G4-37, G4-43, G4-45, G4-47, G4-50, G4-DMA

iNTROduCTiON TO BANCO GALiCiA


•definition criteria and management of social programs

•investment evaluation•education, work promotion

and health programs•priar – corporate volunteering program

SUSTAINAbILITyGOALSSTAkEhOLDER

STRATEGIcISSUES

•market presence•transparency in communications•comprehensive risk management•prevention of financial crimes

•comprehensive business sustainability strategy08

• universality and multichannel marketing •product development

oriented to each customer profile•Quality management and

claims mechanisms•customers’ individual security

and data safety

•communication and dialogue channels between

employees and senior officers•work environment management

•recruitment•training and development

•benefits programs

•promoting the sustainable management of the value chain.

•contributing to the development of our suppliers.

•hiring process•inclusive purchases•account opening

•adherence to the environmental policy and the code of conduct

•environmental management system – iso 14001•paper management

•rational use of energy•environmental and social risks

assessment system•compliance with the

environmental regulations

•managing our business by making an efficient use of

resources and reducing our direct and indirect impact.

•raising awareness among our stakeholders on the

importance of taking care of the environment.

•offering comprehensive development opportunities

for our employees.•promoting diversity and inclusion

at the workplace.•managing the work

environment.

•contributing to the improvement of their quality

of life through excellent products and services.

•promoting financial inclusion and access to banking services

throughout argentina.•supporting productive sectors

for the development of argentina.

•ensuring business profitability•managing risks cautiously.

•conducting business with the utmost transparency, by building up

confidence and credibility.

sHareHolDersGrupo Financiero Galicia s.a.

cUsTomersindividuals, families, students, professionals, entrepreneurs, small and medium-sized companies, commercial stores, public and private institutions, and social organizations.

emPloYeesrecruited without regard to their race, color, religion, origin, nationality, age, sex or marital status.

commUniTYcivil society organizations (csos). beneficiaries of the social programs promoted by the bank. international entities. public organizations. academic institutions. business organizations.the media.

sUPPlierssmall, medium-sized and large companies that supply products and services.

enVironmenTinternational entities.environmental organizations.researchers and the academic world.employees, customers, suppliers and the community.

•encouraging the development of the most vulnerable sectors

by promoting education, health and employment.

•fostering financial education.•strengthening civil society.

05. comprised by senior officers of different areas of the bank.06. employees, corporate customers, individual customers and the community –represented by civil society organizations and the press.07. For more information, please visit : galiciasustentable.com/is2014/ic08. strategic issue dealt with throughout the bank.

STRATEGIC ISSUES MATERIALITY CHART

The following chart contains the strategic sustainability issues defined during the materiality analysis performed in 2013 and reviewed in 2014, which are deemed the most relevant for the Bank's management.

As from this fiscal year, we include in the Report’s printed version the actions, programs and initiatives that were most relevant during the year, that are interesting for our key public, and that provide answers to the selected strategic issues. On the other hand, other actions deriving from our management are communicated through the Report’s digital version, in order to facilitate document tracking07.

G4-2, G4-18, G4-19, G4-24, G4-25, G4-26, G4-27, G4-50, G4-DMA


OUR COMPANY

Banco Galicia has been operating for 109 years as part of Grupo Financiero Galicia, being one of the main financial entities in Argentina. As a global bank, our mission is to render comprehensive quality-based customer-oriented financial services with excellence, aiming at profitability and contributing to Argentina’s sustainable development. Supported by different distribution, service and communication channels, we work for improving on a daily basis the experience of each of our 2,962,410 customers, to help them grow and achieve their well-being.

Through our affiliates (Galicia Seguros, Compañía Financiera Argentina, Tarjeta Nevada, Tarjeta del Mar and Tarjeta Naranja) we carry out actions and programs following basic responsibility, ethics and sustainability principles, so that our stakeholders continue to choose us09.

GRUPO FINANCIERO GALICIA

Grupo Financiero Galicia S.A. is a holding company, with an exclusive financial and investment purpose. Grupo Financiero Galicia S.A.’s activity consists in managing stock interests, net worth and resources.

One of the outstanding companies that Grupo Financiero Galicia has an interest in is Banco de Galicia y Buenos Aires S.A., controlling its whole capital stock10, and also being its main asset. Grupo Financiero Galicia participates in the insurance business through Sudamericana Holding S.A.11, in the mutual funds management business through Galicia Administradora de Fondos S.A.12, and in the goods storage and custody business and the issuance of deposit certificates and warrants through Galicia Warrants S.A.13. It also participates in Compañía Financiera Argentina S.A.14.

HUMAN RIGHTS FOR BANCO GALICIA

Compliance with Human Rights is shown in each of our actions and is reflected in our Values, in the Code of Ethical Conduct signed by our employees and the Code of Conduct signed by our suppliers, and in the adherence to the United Nations Global Compact and the Equator Principles. Our commitment is reflected, among other actions, in our Programa de Inclusión Laboral (Labor Inclusion Program), through which we provide actual job opportunities within the Bank for disabled individuals.

OUR VALUES

cLOSENESS

ENThUSIASMWorking with passion, joy

and optimism, generating a good work atmosphere that may allow for

the formation of motivated teams and the generation of a result-oriented accountability culture.Enthusiastic people have a positive look,

have passion in all they do, and celebrate both their own achieve-

ments and those of others.

INNOVATIONit is the capacity of

generating and implementing new ideas and/or solutions to allow for

permanent improvement and proactivity when faced with our public’s needs.

An innovator is a curious and observant person that constantly looks for new ways

of doing things.

ENGAGEMENTCommitting to our own

goals, collaborating with others’ goals, and do our best to reach them,

trying to find a balance between economic results, a good work atmosphere

and sustainability.Committed people are responsible, keep

their word, and comply with the agreements.

Actively listening to others’ expectations in order to

provide appropriate solutions to their needs, always maintaining a respectful,

serviceable and gentle attitude.A close person is accessible, empathetic, gentle and respectful.

G4-56 G4-3, G4-4, G4-7, G4-8, G4-9, G4-17

G4-17

G4-57, G4-58, G4-LA10, G4-HR2, G4-SO3, G4-SO4, G4-PR1, G4-PR3, G4-DMA

13 AndeAn11 sAntA fe

05 mediterrAneAn

12 neA 10 province of buenos Aires

09 south

03 West

04 north

01 metro i

02 metro iii 07 metro ii

08 metro iv

06 mAr del plAtA / pAtAgoniA

ciudAd AutónomA de buenos Aires

iNTROduCTiON TO BANCO GALiCiA


BANCO GALICIA’S FIGURES

09. to know the sustainability actions developed during 2014 and the responses to Gri indicators given by these companies, please visit : galiciasustentable.com/is2014/ic10. to see the notice served to the national securities commission, please visit : galiciasustentable.com/is2014/ic11. it controls Galicia seguros s.a. (property insurance and life insurance), Galicia retiro compañía de seguros s.a. (retirement insurance), and Galicia broker asesores de seguros s.a (insurance broker). it also indirectly controls 39% of nova re compañía argentina de reaseguros s.a. (local reinsurance company).

*Stated values have been modified in regard to the 2013 Sustainability Report due to a change in the classification criteria.

12. it manages Fima mutual funds, distributed by banco Galicia through its branch network, Galicia home banking and investments center, among others. 13. its main objective is to help its customers have access to credit and financing, securing such loans with goods kept in custody by Galicia Warrants. 14. For more information on compañía Financiera argentina s.a., please visit : galiciasustentable.com/is2014/ic15. For more information, please visit : galiciasustentable.com/is2014/ic16. compensation, social security contributions, catering

services, other benefits (medical assistance, uniforms and equipment, training and others).17. including residents abroad.18. only banco de Galicia y buenos aires in argentina. based on the daily information published by the argentine central bank.19. net financial income plus net income from services. it also includes the result related to margin requirements of repurchase agreement transactions recorded under miscellaneous profits.

BAncO De GALiciA y BuenOS AiReS S.A.

Personnelemployeesinvestment in personnel16

customersindividuals- companiesProducts and Servicestotal loansloans to the non-Financial private sector17

- individuals- companiescredit cards managedMarket Share18

- total deposits- deposits from the private sector- total loansloans to the private sectorDistribution Platformbranches in argentina- autonomous city of buenos aires and Greater buenos aires- provincesalternative channels- atms- self-service terminals- e-banking transactions- telephone banking transactionsnational, Provincial and Municipal Taxesthe bank’s total contributiontaxes on account of third parties- Withholdings- collectionsFinancial informationnet operating income19

net income for the Fiscal yearinvestment in Fixed assets and otherscapital stocknet debt (liabilities) shareholders’ equity

UniT

numbermillions of pesos

numbernumbernumber

millions of pesosmillions of pesosmillions of pesosmillions of pesos

number

%%%%

numbernumbernumber

numbernumbernumbernumber

millions of pesosmillions of pesosmillions of pesosmillions of pesos

millions of pesosmillions of pesosmillions of pesosmillions of pesosmillones de pesosmillones de pesos

2012

5,7341,592

2,582,0722,516,607

65,465

32,86832,31812,91619,403

2,240,932

6,628,917,658,44

257152105

807869

324,591,4104,742,800

1,62485,28610,04875,238

4,6911,301

283562

47,6534,904

2013

5,4872,020

2,808,9812,735,947

73,034

41,90040,88816,32224,566

2,504,359

6,789,007,538,17

261*153*108

837878

380,551,2435,368,928

2,801119,57115,214

104,357

6,4411,837

395562

62,2596,740

2014

5,3742,479

2,962,4102,884,706

77,704

50,36349,95220,53829,414

2,864,802

6,648,798,088,78

261153108

853831

378,303,7556,477,745

4,667172,80521,470

151,335

9,5283,158

518562

78,8479,899

ZONE MAP

G4-4, G4-8, G4-9, G4-ec1, G4-FS6, G4-FS13


migUel PeÑaconsumptiondivision

JUan carlos l'aFFliTTorisk manaGement

JUan sarQUisWholesale bankinG

marcelo Poncinicredit

raFael bergÉsorGanizational development

and human resources

sebasTiÁn PUJaToGalicia insurance

gasTÓn boUrDieUcomprehensive

corporate services

Pablo leÓn casTroFinancial division

Daniel llambíaschieF eXecutive oFFicer

FabiÁn Konretail bankinG

division manaGers do business and take decisions,

bearinG in mind our principles and values

that are based on ethics and corporate responsibility.

manaGement oversiGhtthe strategic management assesses the bank’s comprehensive performance by analyzing and approving the budget, monitoring project implementation and studying results. the main tool used by the bank is a scorecard of performance indicators that monthly monitors the performance, evolution and degree of compliance with the goals set for first-line managers, their direct reporting officers and the chief executive officer. this scorecard is available for the board of directors.

rememurationthe board of directors’ compensation is set by the shareholders' meeting, based on variables such as business performance on an economic, social and environmental basis; as well as the time devoted to the business management, and the abilities and professional reputation of each of its members. For first-line managers, compensation is composed of a fixed base plus a variable amount which depends on the size, scope and complexity of the duties of each position26.

conFlict oF intereststhis is one of the issues included in the code of ethics. the audit committee reviews the bank’s transactions and processes. if deemed necessary, independent assessment firms may participate in the review.

compliance With standards and reGulations all our operations are ruled by the argentine central bank (bcra)’s regulations, the code of corporate Governance, the code of banking practices, the national securities commission, the advertising self-regulation code, and the sarbanes-oxley act25.

transparencyWe ensure a true and thorough communication with all stakeholders. we have profile-specific relationship and accountability channels.

BANCO GALICIA’S STRATEGIC MANAGEMENT

The Bank’s strategic management is in charge of making comprehensive business decisions, and is composed of the Board of Directors27, comprised by 7 Directors and 5 Alternate Directors28 , the Chief Executive Officer and the Bank’s Divisions Managers.

The Directors meet at least twice a week in 12 work committees and commissions, and they interact on a daily basis in the Bank’s day-to-day business in order to decide on and plan its business strategy and medium-term sustainability performance.

chieF eXecutive oFFicer: He reports to the Board of Directors and is responsible for the implementation of the corporate strategy.

division manaGers: They have executive positions and accomplish the Bank’s strategic goals, reporting to the Chief Executive Officer. Together with their reporting, they give presentations to the Board of Directors for addressing key audiences’ concerns, sensitive matters and any progress on the sustainability management32. During 2014, a division manager turnover was carried out so that our managers would improve their leadership skills and contribute a new vision to each division.

boarD oF DirecTors

sergio grinenco29 chairman

Pablo gUTierrez vice-chairman

GuiLLeRMO J. PAnDO director

RAúL H. SeOAne director

LuiS M. RiBAyA director

PABLO M. GARAT30 director

iGnAciO A. GOnzALez30 director

c. enRique MARTin alternate director

OScAR J. FALLeROni alternate director

enriQUe garcía PinTo30 alternate director

JuAn c. FOSSATTi30 alternate director

AuGuSTO R. zAPiOLA MAcnAB30 31 alternate director

MANAGEMENT BY A GOOD CORPORATE GOVERNANCE

brUno FolinoplanninG and manaGement control

G4-34, G4-35, G4-36, G4-37, G4-38, G4-39, G4-40, G4-41, G4-42, G4-43, G4-44, G4-45, G4-47, G4-49, G4-51, G4-52, G4-53, G4-LA12, G4-SO3, G4-PR3

CORpORATEGOVERNANCE


traininG the bank’s first-line managers and directors take part in different banking-specific forums and congresses, as well as in activities related to the promotion of sustainability principles, in order to be trained and add new knowledge to their experience20.

assessmentthe board of directors is assessed by the shareholders’ meeting through accountability and reports on business performance . division managers are assessed through different mechanisms, including euF22 , ensi23 , kpis24 , the Work environment survey, and their compliance with sustainability goals, as well as with international standards, such as iso and Gri.

The Compliance Division meets the requirements provided for in the Capital Markets Law's regulations so as to act independently, reporting to the Board of Directors.

PREVENTION OF FINANCIAL CRIMES

We work on the Prevention and Control of Money Laundering, Funding of Terrorist Activities and other Illegal Activities according to a procedural and controlling policy based on international standards.

During 2014, we created an annual individual transactional profile for each customer, called “Profile Diversion”, by stipulating different parameters depending on the amounts transacted and based on net worth and tax documentation, in order to detect any unusual transactions.

COMPREHENSIVE RISK MANAGEMENT

Risk is fully managed by monitoring that standards, policies, regulations and codes are complied with in all aspects33:

Financial risks: To keep adequate liquidity and financial standing levels.operational risks: To minimize the risk deriving from noncompliance or failures in the internal processes, or the performance of employees or systems, as well as the risks resulting from external events.credit risks: To minimize the risks of total noncompliance with the financial obligations assumed by customers or their counterparts. We also analyze social and environmental risks.

In order for investors and external audiences to know the exposure to different risks, as well as the structure and the adequacy of the regulatory capital, we began to publish, in 2014, the document entitled “Market Discipline”34.

COMPLIANCE DIVISION

Keeping up with the best practices in terms of compliance, we created the Compliance Management35.

The Compliance Division's goal is to coordinate all necessary internal actions in order to avoid economic, criminal and reputation penalties.

20. For more information, please visit: galiciasustentable.com/is2014/ic21. For more information about the compensation system, please visit: galiciasustentable.com/is2014/ic22. upward Feedback survey.23. internal satisfaction survey.24. key performance indicators. 25. For more information, please visit: galiciasustentable.com/is2014/ic26. For more information, please visit: galiciasustentable.com/is2014/ic27. to see the complete résumés of directors and division managers, please visit: galiciasustentable.com/is2014/ic28. pursuant to cnv rules, two out of the seven directors are independent, and three out of the five alternate directors are independent as well.29. the chairman is the bank’s legal representative and performs executive tasks. 30. independent director. 31. ad-referendum of the argentine central bank’s authorization.32. these three aspects are considered “material concerns” by the bank, as per indicator G4-50. For more information about the main issues addressed in 2014, please visit: galiciasustentable.com/is2014/ic33. For more information on risk management, please visit: galiciasustentable.com/is2014/ic34. available at bancogalicia.com35. the term “compliance” refers to the adequacy or agreement with applicable laws, regulations, policies, procedures and rules of a company.36. the reduction in training hours, as compared with 2013, was because the contents of the courses are being updated due to changes in the regulations issued by the anti-money-laundering unit (ual as per its initials in spanish).

courses on prevention of money launderingparticipants hours

2012 2013 362014 2012 2013 362014

Face-to-Face training courses

595 631 387 1,908 1,503 666

e-training courses

2,654 1,878 560 2,937 2,439 764

Total 3,249 2,509 947 4,845 3,942 1,430

G4-14, G4-45, G4-46, G4-SO4, G4-PR3

G4-46

G4-PR1

G4-36

G4-42, G4-43, G4-44

BANCO GALiCiA AS A SOCiAL ACTOR


EL BANCO Y SU CONTRIBUCIóNAL DESARROLLO SUSTENTABLEEL BANCO Y SU CONTRIBUCIóNAL DESARROLLO SUSTENTABLE


A cOMPREhENSIVE SUSTAINAbILITy STRATEGy fOR ThE bUSINESSfor every society, to get access to financial products and services implies growth, progress and well-being.

DIALOGUE AND cOMMITMENT WITh OUR STAkEhOLDERSWe identify our stakeholders in order to get to know them better, learn about their expectations and build joint actions that may benefit us all.

AWARDS AND REcOGNITIONSWe receive recognitions from both domestic and international entities for our business management and sustainability contribution, and we grant awards to our customers for excellence in the development of their activities.

ADhERENcE AND JOINT WORk WITh INTERDIScIPLINARy ORGANIZATIONSthrough our alliance with academic institutions, public entities, business chambers and corporate groups, international and multilateral agencies, civil society organizations and private companies, we are present in exchange forums for building a sustainable business.

the bank as a development enGine

the World is underGoinG constant chanGe. durinG the last ten years, deep transFormations had an impact on society, the market, competitiveness and consumers' behavior.

neW trends Generate a real and visible impact, re-Flected in the communication immediacy, the reduc-tion oF the diGital Gap, many technoloGical advan-ces that increase the potential For productivity and open neW investment opportunities, the creation oF neW industries, the risinG oF emerGinG markets, and the acceleration oF Globalization. hoWever, social ineQuality issues are still present –and, in certain cases, they are even increased–, as well as an incre-asinG scarcity oF natural resources, demoGraphic GroWth, a hiGher demand For Food, and territorial conFlicts, amonG others.

based on this scenario, the society’s eXpectations re-GardinG the role to be played by companies are thus chanGed. today, the society not only is more aWare oF the role played by companies but also demands such companies to be part oF the solution to the huGe problems Faced by our World.



A COMPREHENSIVESUSTAINABILITY STRATEGY FOR THE BUSINESS

The scenario where companies must develop their activities today has become more complex. Reputation and trust are nowadays crucial aspects to meet the expectations of stakeholders. The private sector must be capable of responding to stakeholders by assuming its role as social actor.

In view of these new paradigms, the financial system should look for readjus-ting business strategies and models. The financial sector should generate services and products that may measure up to the needs of these new consumers and provide them with actual responses to their ongoing innovation demands.

this is a unique opportunity to shoW that banks are a truly positive chanGe Factor, contributinG to the society’s improvement and listeninG to their needs in order to transForm them into solutions.

At Banco Galicia, based on our business strategy, we focus on meeting customers’ needs, ensuring transparency in our corporate governance, caring for the environment, striving for social equality and fostering economic growth, with a long-term vision. We develop products and services that help us proactively anticipate any new segments and needs of each customer profile, in order to help them grow and achieve well-being. We contribute to the State by paying both our own taxes and, acting as withholding agents, third parties’ taxes that, in view of their size, are equal to the entity's earnings. We provide decent jobs throug-hout the country and improve our employees’ talents in order to form motivated teams that may respond to the needs of all types of audiences.

In order to carry out our business strategy, our Sustainability Division37 fosters a sustainability strategy that acts as a source of both internal and external inspiration and motivation, supported by the Board

and focused on execution, allowing the Bank to act in a comprehensive and interdisciplinary manner.

The Division promotes a work model that integrates initiatives related to Training, by participating in exchange and education activities on sustainability-related issues; Communication, by fostering the impor-tance of sustainability and reporting its performance through multiple internal and external communication channels; and Coordination, by encouraging social investment initiatives together with the community and articulating actions to be carried out with different divisions of the Bank and other institutions.

The Division assumes the challenges derived from the context by fostering interdisciplinary initiatives carried out across different sectors of the Bank and members of our stakeholders. Below we highlight some of our 2014 initiatives:

●

G4-2, G4-36

Contributing together with our Customers with Welfare Entities

With our Product Division, we created the “Solidarity Rounding Up” program, through which our customers donate the cents amount resulting from the rounding up of their credit card payments. At the end of the campaigns, the Bank donates to the chosen entity the same amount that the customers gave, up to an amount of Ps 200,000. The beneficiary entities during the IX Campaign were: Asociación Síndrome de Down de la República Argentina (Argentine Down Syndrome Association –ASDRA), Red Argentina de Bancos de Alimentos (Argentine Network of Food Banks), Fundación Endocrinológica Infantil (Child Endocrinology Foundation –FEI) and Doctors of the World, Argentine Chapter. A total of 46,271 customers have adhered to the campaign, and a total amount of Ps. 624,713.28 has been raised.


37. up to mid-2014, this sector was called “corporate social responsibility division”.

●

●

●

●

●

Encouraging Financial Inclusion

Through the “Microfinance Promotion” program, together with the Credit Division, in charge of the credit evaluation of Micro-Credit Institutions that apply for a credit line to, in turn, grant loans to micro entrepreneurs.

●

Fostering the Creation and Training of SMEs and Entrepreneurs

Through the “Del emprendimiento a la PyME” (“From the Business to the Small and Medium-Sized Companies” [PYME]) program, where we define, together with the Business and SMEs Division, the profile of candidates, as well as the requirements to participate in the program.

Fostering Financial Education

Through the Financial Education Program, together with employees of central areas and branches, who propose educational institutions to implement the program and commit themselves to be present at one of the sessions.

Contributing to the Generation and Encouragement of Good Agricultural Practices (BPAs as per its initials in Spanish)

Together with the Agricultural Banking Division, by defining a set of rules that serve as guidelines to be taken into account throughout the whole agro-industrial chain, and which are essential to achieve a sustainable production system. Such BPAs are aimed at raising awareness regarding soil management, water management, use of fertilizers and pesticides, cattle raising and no-till seeding. The development of these BPAs contributes to increasing the use of renewable energies –instead of fossil energies– in order to reduce greenhouse gas (GHG) emissions, thus fostering the mitigation of climate change effects, preserving natural environments to ensure bio-diversity and resource conservation, and promoting the development and social inclusion of communities.

Contributing to the Ongoing Improvement of the Environmental Management System (SGA as per its initials in Spanish)

Together with the Comprehensive Corporate Services Division. We carried out initiatives aimed at maximizing the efficiency of the Bank’s resources in order to reduce their environmental impact through resource optimization programs, the development of an Energy Saving Project, and the training given to our employees on work environmental aspects, response at emergencies, and the ISO 14001 Standard.

Supporting Educational Institutions

Through the “Fostering the University” program, together with the Segments Division. Within the launching activities of MOVE –the Bank's young people segment–, we have promoted building improvements, the acquisition of educational resources, and the support to training initiatives.


By being an innovations driver i can search for new solutions in the face of daily challenges, as well as encourage others to take the step and do it. We can innovate in all areas of life, so that we can achieve a higher level of sustainability.

lUcila anDreibanco Galicia’s innovations driver

i am very grateful to Banco Galicia for the opportunity they gave me. With their help, i was able to do my best: first, as a scholarship-awarded student, and now as an effective employee of the Bank.

rÓmUlo garcía maYgUascholarship recipient of the “boosting your talent” (potenciamos tu talento) university scholarships program, and employee at banco Galicia’s planning division.

Banco Galicia’s distinctive aspect in sustainability matters

has to do with the level of awareness that its leaders have

on these issues.

JosÉ lUis rocespresident of instituto tecnológico de buenos aires

(buenos aires technological institute –itba)

Banco Galicia’s programa con la Comunidad de Mejoras y

Centros de Salud (Hospitals and Health Centers improvement

program with the Community) is a clear example of solidarity and commitment, reflected in

specific actions that improve people’s life quality.

carlos Valcarceldirector of health center no. 2 at

Godoy cruz, mendoza

As part of pRiAR, i have the opportunity to give back to society by transforming the reality of people in need, just by devoting a portion of my time to it”, Gerardo Sbrigata, Branch 89 Manager (Tucumán) and pRiAR’s Zone Coordinator.

gerarDo sbrigaTabranch 89 manager (tucumán) and priar’s zone coordinator.y coordinador zonal priar

This is the place where i want to work, because they think about you and what it means to leave your baby back at home. i am happy with this benefit, so I want all mothers to know about it.

mariana legUizamonbusiness intelligence division manager and beneficiary of banco galicia’s breastfeeding plan

The distinct feature of Banco Galicia is that its volunteering-driven solidarity activities show social sensitivity and solve community needs.

mÓnica cerUTiprincipal of “la concepción” school, beneficiary of the priar program

We ceLeBRATe 10 yeARS OF AcHieveMenTS AnD cHALLenGeS, SHOWinG HOW MucH We DiD anD reminDing Us oF wHaT we sTill neeD To accomPlisH38.consTanza gorlerisustantability manager


We are what we do. We are the world we build. We are the commitment to the future of our children and grandchildren. it is transcendental to have a strategy for this.

Diego baccinipresident of banco Galicia’s priar program and massive income banking manager

Banco Galicia stands out for having a hierarchic sustainability

management structure, having a direct impact on the Bank's

senior management.

aleJanDro langlois institutional director of comunicarse

There is a social commitment both with today’s and future generations. Strategic thinking means planning beyond the benefits we can obtain, in order for the society to gain as a whole.

carolina sTanleYsocial development minister, Government of the city of buenos aires

providing information to stakeholders in a transparent and public way is essential for companies committed to sustainability.

georg Kellexecutive director of the united nations Global compact.

38. Guiding questions were provided about the importance of sustainability, the role played by banco Galicia regarding these issues, and the potential future challenges in this area.

The Bank’s volunteering programs are essential to create a virtuous circle, since we contri-bute to a more harmonic growth for the society, reducing social inequality gaps.

FeliPe Pinabranch 31 manager (bariloche) and priar’s team leader

G4-27G4-27


BANCO GALiCiAAS A SOCiAL ACTOR

The financial system will only contribute to sustainability

if access to credit is considered as a right, and if credit in itself is

understood as a limited profitability platform aimed at distributing

unlimited accumulated fortunes

carlos marcH strategic communication director,

Fundación avina

Banco Galicia’s distinct features in terms of sustainability are its

leadership and its ongoing efforts to be up to date on these issues.

As a result, Banco Galicia has achieved an international level

that is hard to find in other companies in our country

lUDoVico ViDelapresident of GdFe and executive director of

Fundación bunge y born.de la Fundación bunge y born

As a hundred-year-old company, we know the importance of

long-term planning. Therefore, our sustainability work is

strategic, in the understanding that it is directly related to the

sense of transcendence.

marcelo mc grecHagricultural banking manager, banco Galicia

We highly underline Banco Galicia’s ongoing work, and we vouch for the Bank’s transparent support to social initiatives under a long-term vision and focusing on achieving a sustainable development of the most vulnerable sectors.

merceDes cariDeexecutive director at Fundación médica de salud visual y rehabilitación (medical Foundation for visual health and rehabilitation –fusavi).

The need to adopt sustainable practices extends to all sectors within the society, including banks. We believe that the more united all actors are regarding their sustainability focus, the better the results will be. it is only together that we can work in order to leave a better world for future generations

aDiTi JosHimizuho bank’s representative, chairman of asociación principios de ecuador (equator principles association)’s board of directors

Today, mega-trends demand companies to adapt their business models. Besides financial data, new measurements are needed. Companies need to understand and manage their impact in order to implement new strategies in this new era.

malcolm PresTonpartner in charge of the sustainability and climate change Global practice, price Waterhouse coopers

We are very proud of and increasingly value working for a company like Banco Galicia

due to, among other aspects, its commitment to the environment

and the community.

FlaVio Dogliolobranch manager, banco Galicia

Banco de Galicia y Buenos Aires S.A., signatory of uNEp Fi since 2011, recognizes its commitment to making the transition into a green economy, by integrating environmental, social and corporate governance elements into its sustainability strategy.

eric UsHeracting head at united nations environment programme Finance initiative (unep Fi)

Responsibility is the basis of sustainability, as it ensures a harmonic development and growth, benefiting not only the company but also the whole community

abel albinopresident of Fundación conin

Banco Galicia is the ideal partner for a think tank: it supports innovation in public policies and has long-term vision. The “400 Classes” project expands the limits in order to improve educational quality in our country

FernanDo sTraFaceexecutive director, cippec

Actions oriented to the development of social-productive skills have a great impact in terms of social inclusion. The comprehensive management model fostered by Banco Galicia is an innovative practice, worthy to be replicated

agUsTín salViaGeneral coordinator and head researcher of the programa observatorio de la deuda social argentina (argentine social debt observatory program), universidad católica argentina

during the last ten years, Banco Galicia has shown its commitment to sustainability issues. An aspect worthy to be pointed out is the Bank's identification with its stakeholders, as well as its ongoing work together with them. One example of this type of work is the directory of Sustainable Suppliers.

alberTo williprofessor at iae business school, universidad austral

As a result of the possibility of participating in Futuro Galicia (Galicia Future) and being beneficiary of a post-graduate scholarship, i was able to grow as a professional, develop new skills, and expand my contact network

ignacio Pazparticipant in the programa de Gestión del talento “Futuro Galicia” (“Galicia Future” talent management program)

G4-27

CuSTOMERS

CustomerS20 ● 2014 SuSTAiNABiLiTy REpORT

customer’s eXperience

at banco Galicia, customers are the Focus oF our decisions and our business model.

even thouGh We are committed to the quality oF the services We render throuGh our Foundation, We continue WorkinG to deliver our customers eXperiences that are increasinGly better.

our goal is to build long-term relationships based on trust, oFFerinG customers innovative solutions and products that meet their needs.

our closeness and passion have alloWed us to make a commitment and be recoGnized in the market as one oF the leadinG banks in arGentina.


UNIVERSALITy AND MULTIchANNEL MARkETINGWe are a universal bank, focused on our customers. For such purpose, we formulated a commercial strategy for each segment that is based on a wide range of products and services, and on face-to-face, digital and telephone communication and service channels customized for each profile.

SEcURITyWe take care of our customers’ safety within our premises, and of the security when handling their personal data as well.

INDIVIDUALSWe work to bring forward innovative proposals aimed at meeting each specific need. this way, we created move, a segment with a digital proposal targeted at young people; we are leaders in the high-income segment thanks to Galicia Éminent, and we continue working on strengthening smes.

cOMPANIESWe work so that each type of company is able to grow and strengthen its business with our support especially customized for each segment. this year we focus on the smes and agricultural sector, two driving engines for the development of argentina.

SERVIcE QUALITy We work on process improvement, the resolution of our customers’ complaints and expectation assessment in order to gain our customers’ satisfaction.

PRODUcTS AND SERVIcESthe bank offers products and services customized according to the requirements of each individual customer segment: credit cards, loans, insurance. We support the development of companies through our services: Galicia convenios, foreign trade, training to companies, and our products.

PROMOTIONS AND bENEfITSWe increased the purchase capacity by means of our promotions and benefits: ¡vamos los jueves! (let’s go on thursdays!) and Quiero! (i want!) programs.

cONSUMER fINANcINGbanco galicia offers credit and consumer financing solutions through the companies tarjetas regionales and efectivo sí (compañía Financiera argentina).

CuSTOMERS

s

UNIVERSALITY

We are a universal bank, and that is Why We Focus on each customer proFile so that younG people, Families, proFessionals, entrepreneurs and businessmen can have access to a Wide ranGe oF products and services to help them meet their speciFic needs, improve their quality oF liFe and GroW39.


39. to get more information on our customer segments, please visit galiciasustentable.com/is2014/ic40. this chart includes customers from the business and smes segment, i.e. individuals engaged in commercial activities called business and professionals.

G4-4, G4-8, G4-FS6, G4-DMA

Our Customers’ Profile


inDiViDUals comPanies

relA

ted c

ompA

nies

tarje

tas r

egion

ales a

nd ef

ectiv

o sí.

corporAtionseconomic groups and/or multinational and/or national companies that list their shares. they carry out foreign trade transactions and are active players in the capital market.

compAnies companies that use our short-, mid- and long-term financial services and our transactional services, and carry out foreign trade transactions.

government sectormunicipal, provincial or national government entities that use tailored products and services, especially electronic services, to improve community development by building bridges between the state and the people.

AgriculturAl sectorlegal entities or individuals whose commercial activity is the agricultural production.

high incomehigher-income individuals who enjoy a special service model, Éminent, a proposal featured to provide, at all times, direct contact and dedicated service, as well as special products and benefits.

mAssive incomemedium- and low-income individuals who use the bank’s products and services for personal purposes. we offer them a range of solutions in accordance with their needs.

business And smesindividuals engaged in commercial activities (business and professionals) and smes.

productsand servicesloans, credit cards and insurance

promotionsand benefits¡vamos los jueves! (let’s Go on thursdays!) and Quiero! (i want!) programs.

financiamiento al consumopara personas de bajos recursos.

foreigntrade

financing

of investment projects and agreements with customers’ suppliers

training

to companies to support their development

individual customers by segment

corporate customers by segment

corporate and individual customers by region in argentina

● 84.80% massive income● 8.45% business and professionals40

● 6.75% high income

● 69.8% smes● 22.2% agricultural sector● 5.6% companies● 1.4% corporations● 0.9% public sector

● 9.46% zona 01: metro i ● 6.55% zona 02: metro iii● 9.85% zona 03: West● 7.13% zona 04: north● 10.31% zona 05: mediterranean● 6.61% zona 06: mar del plata/ patagonia● 8.51% zona 07: metro ii ● 7.27% zona 08: metro iv● 11.08% zona 09: south● 4.93% zona 10: province of buenos aires● 6.44% zona 11: santa Fe● 4.69% zona 12: northeast● 7.17% zona 13: andean

2012 2013 2014

Financing Granted to companies by type of activity

19,831 25,054 29,283

agriculture and livestock 4,844 7,160 8,177

trade 4,218 5,393 5,924

construction 590 706 708

manufacturing sector 7,334 7,580 9,239

services 2,710 3,737 3,776

Fishing, Forestry and mining 134 477 1,459

others 1 1 0

consumer credit lines 12,488 16,069 20,668

personal loans - 4,821 4,855

mortgage loans - 448 445

pledge loans - 10 10

others - 10,790 15,358

Financial public sector 550 777 412

total loans 32.868 41.900 50.363

Financing Granted to Companies,Individuals and Public Sector

through the financial area, banco galicia provides services to insurance companies, mutual funds, financialinstitutions, special financial sector and multilateral agencies, which are entities governed by government agencies.

G4-4, G4-8, G4-FS6, G4-FS13

CuSTOMERS

MULTICHANNEL MARKETING

takinG into consideration the importance oF neW technoloGies and the relevance oF multichannel marketinG noWadays, Where online and face-to-face options coexist to be able to provide our customers With an eXcellent service eXperience; at banco Galicia We developed distinctive communication and customer service channels

Communication Channels

We have specific communication channels for each segment, what allows customers to be informed, perform their transactions and submit their queries pursuant to their needs.

Our main telephone communication channels are Galicia Responde, Fonobanco and Fonobanco Seguros, managed from the Customer Contact Center.

We also have several communication channels through different social networks:

1,005,580 Facebook/bancoGalicia FolloWers20,527 Facebook/bancoGaliciasustentable FolloWers

84,200 @bancogalicia FolloWers4,086 @galiciarsc FolloWers28,300 @galiciaresponde FolloWers

6,700 subscribers on youtube.com/bancoGalicia4,109,605 vieWs

25,508 FolloWers on linkedin

132,065 FolloWers onGooGle plus

Welcome Pack

developed under the bank’s innovation process41, this tool is aimed at standardizinG and streamlininG the initial encounter With our customers.

this neW model alloWs us to present ourselves With a sinGle identity and helps us develop a more comprehensive service, since diFFerent sectors take part in its development, all oF Which must coordinate their actions For an eFFicient disclosure oF inFormation.


Though this channel, our customers get online access to check account balances, make transfers, pay services, request loans, make term investments, acquire home or automobile insurance, pay credit card statements and perform other transactions in an easy, fast, convenient and secure manner.

We have an e-platform, mainly made up of Galicia Office, where during 2014 the volume of transactions44 increased 67% when compared to 2013.

We implemented new features to improve the quality of the information our custo-mers receive and the manner in which they have access to such information. Through Galicia Office’s new version, we offer

Service Channels

This year, we focused again on the innovation of customer service digital tools to be increasingly closer to our customers and their needs.

customers the possibility to enable this service for all their value chain. Furthermo-re, we renewed the site structure and improved the design, use and safety thereof; we added context-based help for everything users may need to do45; and we included features related to transactions with checks and different queries. atms42 With 79,049,912

transactions a year 853

Our customers can perform banking transactions on their mobile phones, for instance payments, transfers, queries, term investments and mobile recharges.

Galicia Servicios Móviles

customers used the application in december2014

301,783

In 2014, the branch network was made completely accessible through the inclusion of ramps that allow connecting different existing levels between the street and the branch building. We also included accessible bathrooms for individuals with physical disabilities, pursuant to the regulations set forth by the Comisión Nacional de Discapacidad (National Disability Commission). We also have elevators in branches with more than one floor that do not have an operational sector in the ground floor.

Accessibility in Branch Offices

Galicia Home Banking

queries and requests

transactions in pesosand u.s. dollars

28,497,087

2,591,503

Galicia Office

transactions

million intransactions

5,993,332

293,003 accessibility 2013 2014

branches with special bathrooms

total number 135 136

% of total number of branches 52 52

branches with ramps*

total number 232 248


branches with elevatorsfor disabled people

total number 57 86


% of total number of branchesthat require them*

28 42


CUSTOMERS’ SECURITY

the protection of customers’ personal data and information is a highly valued asset for the bank, and we preserve it, together with physical safety. For such purpose, we have policies, tools and processes that allow us to ensure a safe management, we train our employees and we have infrastructure at branches to maximize the safety of all individuals who come to the bank. We also adhere to the code of banking practices to contribute to guaranteeing the rights of users of financial services and products, and to the advertising self-regulation code of ethics (código de ética de autorregulación publicitaria, conarp), with the purpose of promoting responsible communication with our customers.

41. For more information about Galicia innovation program, please refer to the employees chapter.42. acronym for automated teller machine.43. tasi is the acronym in spanish for intelligent self-service terminals.44. transactions correspond to every operation that involves cash flows.45. bancogalicia.com/galiciaoffice

* the incidence % in the network of branches that only have ground floor (with no other floors) or else that have tellers and business service centers in the ground floor is not considered for this calculation.

atms With kits Forblind people and voiceGuidance system

199

tasis43 in 258 branches throuGhout arGentina482

G4-FS14 G4-PR1, G4-PR3, G4-DMA

CuSTOMERS


At Banco Galicia we value and understand that students seek to achieve financial independence. That is why we developed MOVE, an innovative proposal targeted at young university students between 18 and 27 years, where we support their personal and professional development through products and services tailored to their profile and needs, creating alliances with the major universities in Argentina46.

MOVE is a concept of a 100% online bank with no branches, which offers customers a debit card, access to credit with no need to show proof of income, and a Mobile application with simple and flexible financial services.

Galicia Éminent is a distinctive service targeted at high-income customers who value personalized relationship, exclusive benefits and dynamic processes upon each contact with the Bank, both with regard to face-to-face interactions and online. This service has more than 40 exclusive spaces and centers.

Over 100,000 customers enjoy this service, with a dedicated customer service officer who meets their needs in a personalized and efficient manner.

To improve the cultural and social development of students, we forged a strategic alliance with ISIC (International Student Identity Card), which offers more than 50,000 benefits in Argentina and worldwide, including discounts. This proposal also includes all the benefits of Quiero! (I Want!) Quiero viajes! (I Want Trips!), ¡Vamos los jueves! (Let's Go on Thursdays!).

Communication and customer service channels are based on the social networks. In 2014 we created BETA LAB, a forum where, together with young people, we continuously redefine service, following the main technological trends, to be always in a leading position.

Young People Segment - MOVE

younG individuals requested the move card30,608

INDIVIDUALS

Éminent Service

customers

eXclusive spaces

100,000

40

1 identitY + 4 components

the carda card that offers young people access to plenty of benefits and allows them to be able to buy in an easy and safe manner.

the applicationFrom where young individuals will be able to manage all their products and control their expenses in a simple and intuitive manner. they also have tools to manage their money, carry out their projects, make enquiries about the bank's benefits and be assisted through the social networks.

the beneFits clubyoung people have access to all banco galicia’s benefits, in addition to some other exclusive benefits oriented towards their taste and needs and those granted by the isic card.

the teampeople who are in charge of dispelling doubts to young individuals, thus supporting them at very important times and providing them with security upon their experience through the social networks and by phone.

+

+


Business andSMEs Segment

We work to be close to our customers and get to know their business and the challenges related to the different types of activities carried out or the region of Argentina where they are located, so as to be able to provide advice and specific solutions to meet their needs.

Nowadays, more than 200,000 small-sized companies and individuals engaged in commercial activities have accounts open at Banco Galicia. A significant number of those companies have payroll deposit agreements in force, so their employees collect their salaries through the Bank.

This year we strengthened our closeness bonding with SMEs customers by maintaining a dedicated and specialized

service model targeted at this segment in branches, through more than 500 dedicated officers.

We doubled our participation in industry fairs: FIMAQH (Machines and Tools), SIMATEX, Emitex and Confemaqh (Textile Products), Expofarmacia, Hotelga (Hotels and Gastronomy), Argenplas (Plastic Industry), Expologisti-k, Expotransporte, Tecnofidta (Technology for Nutrition), Batimat (Construction), Automechanika, Expofranquicia. Our value proposal, the dedicated and specialized service model as well as the specific products and services we offer for each profile were made known in all these fairs.

online platForm Where banco Galicia’s customers and non-customers may share their eXperiences and commercial relationships. thanks to this Forum, they can also take traininG courses, Get inFormation reGardinG the seGment’s trends, reGister to attend meetinGs and Get eXclusive beneFits.

visits

reGistered users

reGistered companies

656,631

14,580

7,360

buenosnegocios.com

We support the development oF smes throuGh alliancesWith orGanizations and academic institutions.

initiatives Goal outstandinG actions

buenos negocios (Good business) meetings

to create a forum for businessmen from smes so that they have the opportunity to exclusively think about their business, take training courses, share experiences and find specific business opportunities.

this activity has been carried out for 10 years, where approximately 7,000 businessmen attended. most attendees considered these meetings were very good or excellent. the highest nps was achieved in mendoza, reaching 81%.

business management program – offered by materia biz

the program is targeted at owners of smes, and its goal is to provide them with specific tools to manage their businesses.

37 businessmen from smes took part in córdoba, mar del plata, rosario, resistencia and buenos aires. Furthermore, entrepreneurs throughout argentina took part online.

experiencia endeavor (endeavor experience)

to organize a full day of academic content, networking and presentations of entrepreneurial businessmen for smes.

We sponsored all the endeavor experiences during 2014 in trelew, mendoza, tucumán, rosario, buenos aires, córdoba, mar del plata, san Francisco and the northwest of argentina.

nxtp-labs47 program for growth and investment fund focused on technology companies, and global network of entrepreneurs and investors.

We support the program through mentoring days.

46. nueva escuela, Faculty of medicine and dentistry of the uba, universidad de belgrano, universidad de ciencias empresarias y sociales (uces), universidad de Flores, universidad nacional de rosario, univer-sidad nacional de tucumán, universidad nacional del centro (tandil), universidad del salvador and universidad torcuato di tella.47. nxtplabs.com/es/

G4-FS14, G4-ec8

carlos García - pampa ahumada

pablo Giber - cervezas artesanales morrigan ale y tres picos

patricia courtois - rogelia restaurante

CuSTOMERS


COMPANIES

In 2014 we analyzed needs and opportunities to improve the service model and thus be able to provide our customers with higher added value.

This new model includes three pillars or clearly defined moments, each of them with specific functions:

This new structure helps improving the service model and strengthens the specialization, commitment and closeness with regard to our customers.

Our main product for legal entities and individuals whose commercial activity is the agricultural production is Tarjeta Galicia Rural, a credit card designed for the purchase and financing of supplies, seeds, agrochemicals, fuel, cattle, machinery and services. The card has more than 9,400 subscribed stores.

This year we enabled transactions with the card through the telephone sales service, what makes it possible to conduct transactions in a fast and safe manner, with no need to have the card at hand, throughout Argentina.

Another tool used by agricultural customers is the Financial Loans for working capital and investment projects, through

Segment

Channel

Product

needs are identiFied; and the response strateGy, service models and value proposal are deFined.

the business plans that shall be carried out through middle-market banking centers (cbes, as per its initials in spanish)48, Which maintain the relationship With customers, are deFined.

the development oF oFFerinGs and support oF the value proposal implementation are carried out.

Agricultural Sector

sales volume oF over ps. 5,900 million and 36% annual GroWth in sales WithtarJeta Galicia rural

million For FinancinG the purchase oF aGricultural and industrial machinery, vehicles and other related products

aGreements

+ 5,900

442

125

G4-FS7

G4-ec8


Agreement with AACREA

The agreement entered into between Banco Galicia and Asociación Argentina de Consorcios Regionales de Experimentación Agrícola (AACREA – Argentine Association of Agricultural Experimentation Regional Consortiums) continues growing and consolidating over the years.

Together with Programa Líderes (Leaders’ Program), we supported the education of 98 CREA Groups. Thanks to the Padrinazgo a Escuelas (School Sponsorship) Program, 22,180 students, 4,020 teachers and 176 sponsored schools were benefited.

The actions carried out thanks to this agreement are increasingly more and of a higher quality, which contribution in 2014 amounted to Ps. 778,965.

futures contracts of cereals and oilseeds for their productive development, or else leasing credit lines for the purchase of vehicles and agricultural machinery. We also offer Tarjeta Galicia Visa Business, the discount of post-dated checks and Galicia Office.

One of the outstanding actions for 2014 was the migration of all the portfolio corresponding to Agri-PEs, companies with an annual turnover lower than Ps. 10 million, to the remote management model through centralized officers specialized in agribusiness, who have a personalized relationship with customers over the phone. This way, we maximize contact with customers through Galicia Office, delivery of information by email and management of the service center for the sale of services and specific offers.

We continued to make strategic alliances with suppliers of goods and services. We entered into a leasing and mortgage agreement with Toyota for the purchase of new vehicles. We also entered into an agreement with Sustentator S.A. to finance the purchase of renewable energy generation equipment.

We as well support agriculture and livestock organizations and develop affinity groups through visits to the local rural societies and representative entities in the sector; we offer training sessions and carry out business actions that help fostering the activities they carry out.

48. there are 19 cbes located throughout argentina. in 2014 we opened new centers at the head office and paternal, macrocentro, san isidro, salta and belgrano.

G4-16

G4-ec8

CuSTOMERS


QUALITY

To offer excellent products and services, the Quality Assurance Division works on ongoing improvement processes, certifications, training and measurement of performance indicators. For such purpose, we have two key processes within our management: LEAN methodology for complaint resolution and Net Promoter System (NPS) Study to know our customers’ satisfaction level.

Certifications

We continued with the ISO 9001 certification process. This year we renewed this certification for the Private Banking Customer Service Model, Cobranza Integrada Galicia, Leasing, Galicia Warrants and Galicia Administradora de Fondos. Apart from that, we implemented a “Process Maturity Assessment”, an internal certification of the Quality Assurance Division that analyzes processes globally, exceeding the requirements of the ISO 9001 Standard.

Training

We organized the Quality Workshop, which we renamed as Pasión por el Cliente (Passion for the Customer), with the purpose of raising awareness in employees, and training them, with regard to the importance of the issue for our management processes. During the year, 340 individuals who joined the Bank were trained, and 101 employees were offered training at the Training Schools for Managers, Customer Service Managers and Treasurers.

We held technical workshops on the requirements of the ISO 9001 Standard for the members of the operational teams related to Warrants, FIMA and Cobranza Integrada Galicia, with the attendance of 20 people. We also focused on the organization of training sessions at the Branch Network.

Foro Pasión por el Cliente(Passion for the Customer) ForumG4-26

this year We held tWo Forums For the community oF leaders and Five Workshops For employees Who belonG to the middle manaGement level. these Forums are traininG opportunities aimed at promotinG reFlection, and they invite us to think hoW We can improve our customers’ eXperience, Get to knoW better practices and analyze successFul cases.

every year, our employees choose, amonG them, those Who shoW the hiGhest levels oF passion For our customers. in 2014, 226 people received the ¡gracias! por tu pasión por el cliente (thank you for your passion for the customer!) award.


Net Promoter System (NPS)

Three years ago we started using the NPS methodology to listen to and understand our customers’ needs and thus be able to render the service they expect from their Bank. This allowed us to be closer to customers and know their satisfaction level in order to detect opportunities to improve the services we render.

In 2014 we undertook studies to measure the satisfaction and recommendation levels of customers from the different segments with regard to the banks with which they conduct transactions. The result of this study was that, in 6 out of the 8 segments assessed by customers, we were the most recommended bank in the market. Being the most recommended bank makes us feel proud, but it as well forces us to continue improving our customers’ experience every day. As for the study in the High-income Segment, Banco Galicia was 12 percentage points above the bank which occupied the second position, while in the Business and SMEs segment it was 22 percentage points above, and in the Financial segment the difference with the second position was 26 percentage points.

The LEAN Management model’s goal is to improve processes and develop management practices towards ongoing improvement, focusing on the customer’s point of view.

In 2014 we ended the implementation of the LEAN Management model in all the Bank’s branches and in the Company Loan Origination and Foreign Trade processes. This extension made possible a comprehensive vision of processes, as well as increased simplicity and promptness for delivering products to customers.

Senior managers increased their visits to the divisions that work with this methodology, thus making it possible to be close to employees and share in group communication forums.

Within the branch network we improved the operating efficiency and customer-oriented services and we achieved a better integration between teller and commercial divisions. In the Company Loan Origination division, we focused on the end-to-end processes to improve customer-oriented compliance, and in the Foreign Trade Division we redesigned the processes in line with customer segments. In addition, we have clearly identified executives within the organization responsible for each process as well as the process monitoring practice.

LEAN Methodology

oF complaints solved Within the number oF days determined and inFormed to the customer

95%

days oF averaGe complaint resolution time

daily cases derived to branches

1.97

328

bechmark nps by segment

60%

40%

20%

0%

-20%

-40%

-60%

-80%

-90%

hi

studies were made by the consulting firms knack and brain networks.

mi bap pes as companies corp Financial

52%

33%

37%

8%

31%

-16%

19%

-9%

37%

-31%

-4%

-18%

number of customers with complaints over total number of customers

0.025

0.020

0.015

0.010

0.005

0

2012 2013 2014

G4-26, G4-27, G4-PR5

G4-26, G4-27, G4-PR5

banco Galicia

34%

-73%

-20%

-11%

-20%

40%

other banks

CuSTOMERS

EMpLOyEES


elmpyeeso

EMpLOyEES

Galicia, the leader

strenGtheninG the orGanizational culture is a Great challenGe For the bank, and one oF the pillars For compliance With its strateGy and qualitative evolution.

the bank seeks to stronGly develop in employees a customer-based culture with regard to responsibility For results, aiminG at simple, dynamic and eFFective processes and practices, based on values, and capable oF innovatinG to contribute to sustainable manaGement.

Within this FrameWork, the leader's role is essential, since it is the one Who supports, upholds and eXtends the orGanization’s culture. We Want leaders Who are role models For the orGanization; Who Foster trust and Feedback spaces For the development oF their teams’ skills; Who oWn the topics and Who provide inspiration to reach neW Goals and results With team vision; leaders Who constantly reFresh to be at the ForeFront and open to neW trends.


ps

TRUST

DIMENSION

credibility

respect

Fairness

STEPS

select

and

Welcome

inspire

talk

listen

develop

take care

thank

celebrate

share

bANcO GALIcIA’S

PRAcTIcES

selection

oportunidades Galicia (Galicia opportunities)

Jóvenes profesionales (young professionals) program

experiencia Galicia (banco Galicia’s experience)

innovation

internal communication

change management

Work environmentmanagement

conociéndonos cada día más (Getting to know each other more every day)

procedures for employees to make anonymous reports

training

development

assessment

benefits

occupational health and safety

Foundation, club and mutual benefits association

gracias! (thank you!) recognition program

recognitions

enthusiasm calendar

awards

compensations

OUR EMPLOYEES’ PROFILE


employee distribution by Gender

employee distribution by seniority

employee distribution by Geographic area

2012 2013 2014

● men ● Womwn

3,000

2,900

2,800

2,700

2,600

2,500

2,400

2,300

2,200

2,821 2,693 2,6432,913 2,794 2,731

2014 turnover rate49

Women men total

below 30 years old 11.89 12.95 12.42

between 31 and 50 years old

3.19 4.48 3.80

over 50 years old 8.59 6.17 7.20

headquarters 6.10 7.85 6.96

branches 6.69 6.74 6.72

ToTal 6.39 7.30 6.84

● 51% autonomous city of buenos aires● 6% metro i● 5% mediterranean● 4% south● 4% metro ii● 4% mdp/patagonia● 4% andean● 4% West● 4% metro iv● 3% north● 3% province of buenos aires● 3% santa Fe● 3% metro iii● 2% northeast

● 28.43% 1-5 years● 11.05% 11-15 years● 13.83% 16-20 years● 5.69% 21-25 years● 5.47% 26-30 years● 3.80% 31-35 years● 1.67% 36-40 years● 0.25% 41-45 years● 26.35% 6-10 years● 0.04% over 45 years● 3.42% less than one year

G4-10, G4-LA1, G4-LA12

WORK ENVIRONMENT MANAGEMENT

In order to assess and manage our work environment, we work together with the global consulting firm Great Place To Work®. Its investigation model helps organizations diagnose, create and maintain excellent workplaces through the development of cultures of trust.

For that purpose, Great Place To Work® proposes the assessment and evaluation of companies through 5 dimensions: CREDIBILITY, RESPECT, FAIRNESS (attributes of trust), PRIDE and CAMARADERIE.

According to this model, leaders at excellent workpla-ces strive for creating a trust relationship with employees, being this relationship essential for the organization to be successful. To ensure this belief endures over time, the Bank establishes policies, practices and initiatives that nurture and support this relationship.

These policies and practices are framed within the Giftwork® conceptual model that covers the 9 key areas of cultural practices for the creation and maintenance of an excellent workplace: Select and Welcome, Inspire, Talk, Listen, Thank, Develop, Take Care, Celebrate and Share.

EMpLOyEES


78%

73%

69%

77%

74%

49. calculation method: the turnover rate is calculated as an average of the number of employees recruited and those leaving the company over the total number of employees at the end of the reporting period.50. 4,504 employees participated.

We conducted the survey For the bank’s employees in auGust 2014, With an 86% participation. the survey result Was 74 points.

the combination oF employees' practices and percep-tion alloWed the bank to reach the 7th position amonG the best companies in arGentina, in the cateGory oF companies With over 1,000 employees.

G4-26, G4-27


to recoGnize Which are the practices that nurture open and accessible communication in the orGanization With reGard to employees, the ability to coordinate human resources and materials and their inteGrity level upon consistently promotinG the bank’s vision. steps: select and Welcome and inspire.

Selection

At Banco Galicia, we select our employees through clear and transparent selection processes, using different means and mechanisms, among which the following are worth noting: Facebook, Twitter, Skype, Ventrevistas, job fairs and our website bancogalicia.com. The Human Resources Division carries out the selection processes, with the participation of the business area that has an open position. Interviews are supplemented by different tests that allow the Bank to find the best profiles in line with our organizational culture.

Oportunidades Galicia (Galicia Opportunities)

We continued strengthening the portal, a tool that provides development and internal transfer opportunities to our employees. This year we shared opportuni-ties with employees from Grupo Financiero Galicia's companies, and we published more than 190 job postings with an 87% of job positions filled.

Jóvenes Profesionales (Young Professionals)

We seek to attract, hire and develop high-potential professionals who can reach positions with more responsibility in the mid-term. 12 young professionals joined the Bank in 2014.

Experiencia Galicia (Banco Galicia’s Experience)

Initiative aimed at young university students who take courses of study related to the banking business51 so that they can take their first steps in the labor market during university recess. In this edition, we received 5,070 résumés, conducted 680 interviews and hired 102 young individuals.

51. business administration, public accountant, economy, Foreign trade, industrial engineering, bachelor’s degree in it or it engineering, international relations, marketing or commercialization, agronomy, human resources, communication sciences. 52. influence model that suggests "minimizing threats and maximizing rewards" at all times, based on neuroscientific knowledge.53. practicing mindfulness is an excellent way to relieve stress, increase self-consciousness, reduce both physical and psychological symptoms associated to stress and improving overall wellness.54. We received three recognitions during the year: First position in the financial innovation award granted by felaban for the move case (initiative developed through a hot team), eikon azul award for the innovation day event held, and first position in the human resources innovation award for escuela del cerebro (brain school).

INSPIRE

pArticipAnts in 986 progrAmA de innovAción gAliciA (gAliciA innovAtion progrAm)

ideAs 4.353 generAdAs

implemented 93 ideAs

ideAs 13 under process

spontAneous 26 hot teAms

trAining 16 progrAms

gAliciA innovAtion 9 processes

recognitions 4 eArned

SELECT ANDWELCOME

promotions

seArches for cAndidAtes fulfilled through oportunidAdes gAliciA

pArticipAnts in orientAtion sessions

340

153

501

G4-DMA, G4-LA1

EMpLOyEES


Programa de Innovación Galicia (PIG, as per its initials in Spanish) (Galicia Innovation Program)

Innovation is a way to search for different solutions to the problems we face, thus adding value to our business strategy.

Galicia Innovation Program seeks to strengthen leaders’ and employees’ creative development and generation of ideas.

We create new actions to continue developing innovation and contribute to cultural change.

This year we worked placing emphasis on our Leaders:

We organized workshops where we dealt with issues such as self-knowledge, emotional intelligence, brain and efficiency, change, SCARF52 model and mindfulness53, and on getting basic tools to be able to innovate.

We formalized the role of the Leader and Innovation Driver: We train experts during 3 years, who are in charge of the design and facilitation of Hot Teams and PIGs and have an innovation goal included in their performance assessments. For such purpose, we carry out different training activities which supplement the skills that leverage their roles, such as workshops on emotional intelligence, change management and identification of opportunities.

We also carry out the Escuela de Innovación (Innovation School): Theoretical and practical training that provides the necessary tools for the systematization and execution of Galicia Innovation Process. For this purpose, we worked on 7 strategic projects defined by the Division Managers Committee, and the different stages of the process were taught.

The PIG started to be a case study in different universities, and was recognized both locally and internationally54.

-

-


DEVELOP

Training

We are constantly searching for new ideas and tools to meet the needs of the areas and ensure our employee’s learning.

To achieve this, we offer different comprehensive training programs through face-to-face, e-learning, composite and in the job position training.

In 2014, we renewed our orientation session format and we offered newly-hired employees a Welcome Kit with complete information.

in this section, the FolloWinG is measured: Which are the orGanizational development recoGnition and support practices Foste-red by the orGanization, hoW employees are enGaGed to take part in siGniFicant decision-making, and the protection of employees as individuals With a personal liFe and interests. steps: talk, listen, develop and take care55.

55. to get to know the steps of listen and talk, and the other practices rela-ted to develop and take care, please see: galiciasustentable.com/is2014/ic

* participants** central areas: commercial + operating – face-to-face and e-learning*** branches: commercial + operating – face-to-face and e-learning

ScOPE PROGRAM

orientation sessions

training schoolsfor branches

training schools for central areas

Foreign language programs

external courses

projects and special initiatives

leadership and management school

professional development school

integration programs

scholarship programs

DEScRIPTION

orientation session process, supporting corporate valuesexperiencia Galicia (banco Galicia’s experience): promotion of integration and work training of university students.

programs addressed to initial training for promotions and newly-hired employees, and focused on incorporating key knowledge and skills to reach high performance levels at the position.

programs focused on incorporating key knowledge and skills to reach high performance levels at the position.

Foreign language courses

external courses on technical, legislation or business matters at well-known institutions.

business trainingtraining for support areaseducation activities related to project launching and the bank’s strategic initiatives.

training for the community of leaders program for regional division managersprograma talento Galicia (Galicia talent program)programa Futuro Galicia (Galicia Future program)desarrollar t programcoaching for advisorstedx Galiciaprograma desarrollo de líderes (leaders' development program)programa de liderazgo inspirador usal (usal inspirational leadership program)liderazgo y Gestión de personas (leadership and staff management)liderazgo transformacional newfield (transformational leadership newfield)diplomado en Gerenciamiento bancario ubp (certificate course on banking management ubp) programa de habilidades de Gestión uca (management skills program uca)basic leadership toolsprograma de líderes de operaciones (transaction leaders program)

workshops focused on the development of soft skillsnegotiation; communication; report Writing; oral presentations; project management; personal productivity; more efficient meetings; integrated vision of the banking business; y Generation; conversational skills; microsoft office; prezi, train the trainers.

team training activities, which purpose is to create a deep sense of belonging and improve results.create a context of trust and commitment, which enables effective relationships and conversation flows.

scholarships for postgraduate education and master’s degrees

sustainability training with online and face-to-face activities, including the environmental management system.

NEW

Ly-hI

RED

EMPL

OyEE

STE

chNI

cAL

SkILL

SM

ANAG

EMEN

TSk

ILLS

SUST

AINA

bILIT

y TR

AINI

NG

G4-LA10, G4-DMA

G4-LA9

NUMbER Of PARTIcIPANTS

*340

**811

6,569

*110

445

*** 23,775

4,587

948

147

*92

222

TRAINING hOURS

6,360

**49,683

21,915

13,200

5,863

***37,204

30,353

11,791

1,240

21,427

222

EMpLOyEES


56. 201 women and 259 men.

Development

We have a Human Resources Advisory Services Division that works with employees, gathering information on their training and professional development needs.

During the year, 460 assessments56 were given, aimed at getting to know the potential for development of the Bank’s employees, to ease the decision-making process in case of promotions or replacements, and be able to focus training and development efforts.

talent manaGement

These programs aim at creating loyalty in the Bank’s key talented individuals, accelerating the development of key competencies so that they are ready for future positions with more responsibility.

Futuro Galicia (Galicia Future): Futuro Galicia (Galicia Future) seeks to strengthen young people with high potential inside the Bank. During the year, we supported 51 employees so that they could develop leadership skills as well as broaden their business vision and be prepared for the challenges of the future. Taking into consideration self-development as one of the key areas, for 8 months participants had the support of a mentor, who is a member of the Community of Leaders, for the design and monitoring of their Programa de Desarrollo Individual (PDI, as per its initials in Spanish) (Individual Development Program). This program consists in identifying strengths and opportunities for development to support their growth.

With the purpose of promoting talent development in our branch network, we launched the following programs:

Talento Galicia (Galicia Talent): The length of this program is 18 months, and 21 outstanding Branch Managers participated. It seeks to improve self-knowledge as a starting point for personal and professional development, to devise a plan with goals and identify its relationship map, seeking to enlarge its area of influence and strengthen business leadership key competencies.

Desarrollar T: Its purpose is to ease and accelerate the development of 24 leaders to favor their future inside the Bank. They took part in a Transformational Leadership program, and in 2015 they shall receive training to get specific skills that would allow them to improve their professional profile and get a comprehensive vision of the banking business.

manaGement development

The Community of Leaders is made up of Grupo Financiero Galicia's senior managers. The Community of Leaders participates in exclusive spaces of integration, exchange and training for the purpose of strengthening the best managerial team through ongoing updating on business and sustainability matters and the development of member skills as leaders in conferences, workshops and meetings.

In order to continue improving interaction and collaboration, we standardize the periodic communication channels with leaders and promote different virtual forums, such as galicialideres.com and LinkedIn.

deve

lop

Futuro Galicia(galicia future)

Jóvenes profesionales (young professionals)

central areas branches

Futuro Galicia (galicia future)

talento Galicia(galicia talent)

G4-LA10, G4-LA11, G4-DMA


TAKE CARE

+Beneficios (+Benefits) is our comprehensive benefits program, through which we accompany our employees and their families in their projects.

To know our employees’ opinion, we carry out a comprehensive satisfaction survey, where 66.09% of employees say they are “very satisfied” with the program, and 48.8% of employees believe it provides better benefits when compared to those offered by other companies. The most valued benefits are birthdays, health program, special discounts and loans (both personal and mortgage loans).

+BIP in Sports: Soccer, tennis, squash, basketball and playstation tournaments, and intercompany rugby tournament.+BIP in Culture: Private theatre performance of “Dos pícaros sinvergüenzas”.+BIP Activities: After Offices, Secretary Day, Wine Culture Course, +Bip for children, dance classes, Running Team, theater workshop and Galicia chorus.+BIP Discounts: +Bip Card discounts and special agreement with Megatlón.+BIP Buenos Aires: Visits to theatre performances with employees from the provinces.

Birthday Present

since July, our employees can choose Which birthday present they Would like to Get. they can choose among a gift card (1,218 employees), Quiero! points (1,460 employees) or donatinG the amount to the solidarity rounding up program (91 employees).

bip+entretenimiento, cultura y deporte (recreation, sports and cultural activities)

surprise and eXclusive discount blasts.aGreement With meGatlón to oFFer a 50% discount at the Gym.Women’s day, With manicure, beauty treatment For the Feet and makeup.Friendship day at branches and delivery oF a “Friend’s kit” With a vacuum Flask, a Gourd For drinkinG mate, metal straW, sWeetener, coFFee, yerba mate and suGar. voluntary blood donation campaiGn.Galicia store: a purchase and discount platForm For everyone. 2,089 products sold From october 16, 2014 to december 31, 2014.2014 world cup: rincones del hincha (spaces for fans) and prode galicia, with more than 2,800 participants.

••

•

•

••

•

Outstanding Actions for 2014:

2014 +bip beneFiciaries

activity participants

our kids visit the bank 445

private theatre performances 809

soccer tournaments 901

rugby tournaments 20

tennis and squash tournament 195

activities (theater, cooking, dance, chorus, running team)

292

after offices throughout argentina 2,548

G4-ec2, G4-LA2

it recoGnizes the Fair treatment Within the orGanization in terms oF its employees’ reWard and eFForts, shoWs the practices related to the lack oF Favoritism upon hirinG and promotinG, and makes visible the Justice and appeal mechanisms employees have to enJoy a relationship With the orGanization.steps: thank, celebrate and share57.

EMpLOyEES


Program for professional mothersFamily workshopsFamily dayDelivery of school kits: 3,100 sets of school supplies deliveredMejor en bici (Better by Bike) ProgramYoga workshopBreastfeeding PlanFlexible Benefits Program: Birthday benefit, flexible Fridays, flexible working days, gradual return to work for mothers, and telework.Through Fundación Banco Galicia: Delivery of layettes, vacation camps, school assistance.

Teachers’ Day

We celebrated the teachers’ day by invitinG the kids oF our employees From the autonomous city oF buenos aires to take part in an outdoor activity in puerto madero. more than 200 children From 4 to 12 years participated.

Health coverage planVaccination campaignRed Cross coursesRelaxation and stretching workshopsNutrition campaigns: With the change of season, we organized a campaign to raise awareness about the habit of taking a healthy snack. Semana de la Salud (Healthcare Week): During the year, we organized two Healthcare Weeks, where employees are offered the possibility to visit doctors' offices in different medical specialties, as well as enjoy massages and reflexology sessions, apart from a nap room. Informative speeches, conferences and awareness forums with health specialists.

+Salud Space

this year We increased our Galicia doctors’ oFFices services at the +salud space, addinG different medical specialties (clinician, dermatoloGist, phleboloGist, nutritionist and cardiologist) and a laboratory, and eXtendinG the medical services hours.

Unified banking and financial productsMortgage and personal loans at a preferential rateLife insurance: 50% at the Bank’s expenseLeasingDiscounts on home insurancePensando en el Futuro (Thinking about the Future) Program: Program devised so that employees can get new tools to carry out projects in the future.Through Fundación Banco Galicia: Graduate scholarship programs for the Bank’s employees.

Programa de Asistencia Profesional Personalizada (Customized Professional Assistance Program)

We created a Website especially desiGned For our employees, Where they can Find inFormation With tutorial videos on the most recent taX, accountinG and leGal issues. Furthermore, they can make online queries and participate actively With questions about the inFormation published.

salud futuro bienestar+ + +cuidar tu salud es cuidarte (+health, taking care of your health means taking care of you).

ayudándote a construir tus proyectos (+Future, helping your projects come true).

el equilibrio como forma de vida (+Well-beinG, balance as a Way of living).

2014 +bienestar beneFiciaries


breastfeeding kits delivered 61

mejor en bici (better by bike) program 81

yoga Workshop 62

Family Workshop 20

loans to employees settled in 2014

type of loans

number of loans

total amount (in pesos)

personal loans 1,674 ps. 99,195,927

mortgage loans 95 ps. 35,369,653

mortgage loans for construction

2 ps. 760,000

leasing 2 ps. 391,518

total loans 1,773 ps. 135,717,098

labor accidents rate 11,80%

absenteeism rate 5,88%

occupational diseases rate 1,08%

57. to get to know the steps of thank, celebrate and share, please see: galiciasustentable.com/is2014/ic

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+salud 2014 beneFiciaries


semana de la salud (healthcare Week):visits to the doctors’ officesmassages and reflexologyseveral activities

3,4461,3231,710

413

First aid and cardiopulmonary resuscitation courses

181

voluntary blood donation 72

vaccination campaign 733

+salud space (monthly average visits) 895

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G4-LA2 G4-ec3, G4-LA2 G4-LA2

CmomnityuCOMuNidAd


y

PROGRAM MANAGEMENT, INSTITUTIONAL ASSESSMENT AND INSTITUTIONAL STRENGThENINGeach of our programs with the community goes through a management cycle that receives feedback, since upon completion of each project we carry out an assessment of results, what allows us to assess the benefit obtained, identify improvement opportunities and create training to empower our allied organizations.

EDUcATION – VALUE fOR yOUR fUTUREWe believe education is a critical variable to foster development and break the poverty circle. in order to meet these goals, we support higher education by encouraging the professional training of university students through university scholarship programs; we promote financial education so that users have the necessary tools to make responsible economic and financial decisions; and we support organizations that develop initiatives which help improve education quality in argentina.

WORk PROMOTION – VALUE fOR yOUR DEVELOPMENTWe seek to encourage an entrepreneurial spirit as a way to contribute to local development and labor market integration. that is why we promote a training program so that entrepreneurs are able to become professionals and formalize their business; and we foster a financing program aimed at micro entrepreneurs through the support and promotion of microfinance.

hEALTh – VALUE fOR yOUR hEALThWe seek to contribute to the improvement of health care quality for patients, supporting the development of health institutions through improvements in medical technical equipment, hospital resources and infrastructure; to raise awareness about the importance of nutrition and healthy habits through the provision of training to social leaders in the prevention of children malnutrition; and to contribute by providing support to research, training, awareness, treatment of diseases and promotion of the well-being of individuals with disabilities through work conducted in alliance with organizations.

PRIAR – cORPORATE VOLUNTEERING PROGRAMduring the 12 years the program has been carried out, the solidarity initiative of more than 5,154 priar volunteers led to 189 projects to establish new capacities, which allowed 88,009 beneficiaries from organizations throughout argentina to develop and have a positive impact on the community where they are located.

AcTIONS RELATED TO ThE PRESERVATION AND RESTORATION Of hISTORIcAL hERITAGE PROPERTyevery year we select a project that reflects our history and we engage in contributing to its optimization.

GeoreFerential map

communicatinG the social investment strateGy contributes to strenGtheninG communication With our stakeholders. that is Why We developed a GeoreFerential map, a 2.0 communication and manaGement tool that makes it possible to have a comprehensive vieW oF the Joint Work carried out With social orGanizations at Federal level.

thanks to this map, the initiatives beinG carried out can be located pursuant to diFFerent search Filters that Guide and speciFy the search. the initiatives promoted can be located by investment Focal point, support mode, year When the contribution Was made, type oF initiative, province Where the action took place or by social orGanization.

this map Will continue beinG updated With inFormation throuGh time, to keep users up to date With reGard to the bank’s social investment manaGement.


COMMuNiTy


INTRODUCTION

We understand social investment as the responsible, proactive and strateGic use oF private resources, Which eXpected return is the well-being of the community and its development in the long-term.

at banco Galicia We seek to inspire, spread and encouraGe throuGh the actions We support.

our Goal is to sustainably improve the quality oF liFe oF the community throuGh initiatives all over arGentina that Generate capabilities, thus contributinG to both individual and common proGress.

Program Management

Our social investment strategy is based on three major focal points with regard to work with the community: Education, Work Promotion and Health. We believe these focal points are key pillars to social integration and to build a fair society.

Additionally, we promote the preservation and restoration of historical heritage property, and the support to social organizations that foster institutional strengthening and dialogue between the civil society and political leaders, a communication that eases the search for and reaching of basic agreements that, when embodied in public policies, prop up development.

In all cases, we work with Civil Society Organizations (CSOs) that carry out field work, adding specialization and professionalism.

This way, we define three different methodologies regarding work with the Community.

Program Management Cycle

Each of our initiatives goes through a management cycle that receives feedback.

To generate significant transformations and impacts, we start with a comprehensive analysis of the specific intervention area, taking into consideration the environment and identifying the particular needs of the community.

This analysis makes it possible to define goals and objectives and carry out a creative planning of the actions to be performed.

Joint work carried out with specialists in the issues makes it easier to attain goals. That is why, upon completion of each project and together with the organizations, we carry out an assessment of results, not only to identify opportunities but also with the intention to search for ongoing improvement that would allow the continuous development of this cycle.

are those created by the bank and implemented toGether With the support oF specialists and civil society orGanizations.

consist in collaborative actions in alliance With diFFerent social orGanizations, Which carry out their oWn proGrams that are in line With our social intervention Focal points.

consists in speciFic contributions to diFFerent entities to help them strenGthen their eXistinG initiatives.

INSIGNIA PROGRAMS

STRATEGIC ALLIANCES

INSTITUTIONAL SUPPORT TO CSOs

PROGRAM MANAGEMENT

cycLE

definition of objectives and implementation methodologies

analysis of the bank’s changing

potential

assessment under mais

execution together with specialists

problem identification

analysis of social needs

G4-ec7, G4-ec8, G4-SO2, G4-DMA

COMMuNiTy


Articulation and Assessment

We believe sustainable management also implies measuring and understanding the impact our actions have.

That is why we developed a tool named Social Impact Analysis Matrix (MAIS, as per its initials in Spanish) in 2011, which allows us to conduct a comprehensive assessment of our projects regarding three areas: Organization, Program and Beneficiaries, through 70 indicators.

Results obtained provide us with a more in-depth knowledge of our allied organizations, apart from supplying qualitative and quantitative information on the scope of our social investment.

Institutional Strengthening

By using our Matrix, we identify the requirements of CSOs, where education is always a priority. For that reason, we created an Institutional Strengthening program through which we support CSOs with scholarships and specific training in fund development, international cooperation, networking, coordination between the public and private areas, strategic planning and management and implementation of technological services.

Under this program, in 2014 we entered into agreements with AEDROS, RACI, Fundación Los Grobo, Aportes de Gestión para el Tercer Sector, Fundación Compromiso, Potenciar Solidario and Wingu.

G4-SO1, G4-SO2, G4-DMA

quantitative indicators

total educationWork

promotion health

2013 2014 2013 2014 2013 2014 2013 2014

presence in the provinces

24 24 24 24 24 24 24 24

programs 35 36 14 15 11 11 10 10

alliances with organizations

108 118 43 48 30 29 35 41

support to csos 66 63 - - - - - -

beneficiaries*

institutions 1,536 833 906 384 294 61 336 388

schools 1,501 610 1,331 582 26 7 144 21

students 154,374 106,711 115,933 58,002 911 165 37,530 48,544

teachers 134,269 243,279 132,970 241,549 102 254 1,197 1,476

entrepreneurs 5,756 6,193 - - 5,756 6,193 - -

unemployed 1,944 742 - - 1,944 742 - -

patients 603,451 720,946 - - - - 603,451 720,946

* total number of beneficiaries is informed. the bank contributes to the programs individually or together with other entities.

G4-HR1, G4-SO1

*al desglosar por nivel de análisis aparecen las categorías “pobre” y “excelente”. esto no ocurre a nivel de totales, al igual que en años anteriores.

assessment under mais (%)*

70

60

50

40

30

20

10

0

● poor ● Fair ● average ● very Good ● excellent

impact

0,9%

15%

47,8%

0,9%

35,4%

organization

8,8%

35,4%

53,1%

2,7%

program

14,2%

59,3%

26,5%

total

9,7%

62%

28,3%


EDUCATION

Financial Education

as per the onGoinG household survey, there are over 13 million people Who use bankinG services, out oF Which 22% are younG individuals betWeen 18 and 24 years old. pursuant to the inFormation Gathered From the encuesta de la deuda social argentina (survey of the argentine social debt) of universidad católica argentina (uca) carried out in 2013, 5.4% of these younG people applied For a cash loan durinG the last year. at banco Galicia, We promote inclusion and Financial education so that Future bank users can use bankinG products properly and be able to Get the most oF the beneFits oFFered by the Financial system.

after having taken part in the program, 72% of students say they understand better the financial system, its components and how it operates after the tef has been offered.

● 54% quite a lot● 22% little● 17% a lot● 5% nothing● 1% extremely a lot

75% of students say they know better their rights and obligations as future users of the financial system.

● 46% quite a lot● 23% a lot● 18% little● 6% nothing● 6% extremely a lot

The Financial Education Program is aimed at empowering young individuals with regard to economic and financial responsible decision-making through the incorporation of knowledge and practical tools.

The program is carried out for high-school senior students from public and private schools, students who attend educational institutions or those who take part in initiatives promoted by CSOs. To implement the program, we forged an alliance with Conciencia Association.

In 2014 we carried out 75 implementations in 70 educational institutions from 18 provinces, having a direct impact on 2,625 students and 75 teachers, and reaching 10,500 indirect beneficiaries from the educational community.

This initiative was declared to be of interest by the Ministry of Education.

“i am WritinG to personally thank you For the eXperience shared With our 6th year students. both they and the teachers Who participated in this eXperience believed the Financial education proGram’s contribution Was very positive Within the FrameWork oF the proGrams With the community Fostered by the bank”

eDUarDo bassaberprincipal – “manuel belgrano” middle and higher institute, berazategui.

since 2007, We have been carryinG out the proGram in

367 schools

457 teachers attended

over 12.000students received traininG

nps: 100%

We provide an explanation about the

instruments that regulate the relationship between

citizens and banks, and we reflect on the operation of the financial

system as economic agent for the development of

the community.

We work on the importance of budget

and information for good decision-making with regard to economic issues, offer and demand and setting of prices in the market

We work on the concepts of scarcity, needs and decision-making through the pACEd method.

THe Program is imPlemenTeD bY means oF

3 meeTings wiTH a DUraTion oF 150 MinuTeS eAcH, WHeRe THeoreTical conTenT is

cOMBineD WiTH HAnDS-On acTiViTies

1ST

MEETING

2ND

MEETING

3RD

MEETING

G4-ec7, G4-ec8

EDUCATION

INITIATIVE

STRA

TEGI

c ALL

IANc

ESIN

SIGN

IA P

ROGR

AMS

SUPP

ORT T

OhI

GhER

EDUc

ATIO

NfIN

ANcIA

L ED

UcAT

ION

SchO

OL

PERM

ANEN

cETR

AINI

NGAc

TIVITI

ESIN

STIT

UTIO

NAL S

TREN

GThE

NING

ORGANIZATION

agrupar, anpuy, brazos abiertos, Fonbec, león, marista, integrar, puentes, liga solidaria, Forge, demos, reciduca

utdt, usal, udesa, uca, itba, cascos verdes, conciencia

conciencia

cimientos, conciencia, reciduca

Fadam, Fundación la nación

aamnba, Fundación teatro colón

Fundación lúminis, museo del holocausto, misiones rurales argentinas, uca (escuela de educación)

Fundación horacio zorraquín, ruta 40, valores para crecer

cippec

enseñá por argentina

Fundación leer

Fundación victoria Jean navajas

cippec, Fundación rap, confederación de la sociedad civil.

Fundación americana para la educación (Fundaedu), asociación cristiana de Jóvenes, proyecto educar 2050, centro comunitario Jesús maría , uca (school of education), cimientos, Fe y alegría

PROGRAM NAME

potenciamos tu talento (boosting your talent)

aporte a fondo de becas (contributions to the scholarship Funds)

programa de educación Financiera (Financial education program)

programa de becas escolares (school scholarship program)

certamen escolar (school competition)

acercamiento al arte (approach to art)

Jornadas educativas (educational sessions)

Formación en valores (education with regard to values)

las 400 clases (the 400 classes)

Formación y apoyo continuo para profesionales (ongoing training and support for professionals)

12° maratón de lectura (12th reading marathon)

proyecto local de virasoro "escuelas del bicentenario" (virasoro local project: schools of the 200th year)

sustentabilidad y políticas públicas (sustainability and public policies)

infraestructura y equipamiento (infrastructure and equipment)

bENEfIcIARIES

217 students

97 students2 organizations

70 schoolss2,625 students75 teachers

2,436 students

2,303 students250 teachers363 schoolss

32,912 students

20,400 teachers

7 schoolss16 teachers318 students

33 schoolss220,000 teachers26 students

20 teachers6,720 students 60 schoolss



3 organizations

2,149 students15 schoolss315 teachers62 organizations

LOcATION

province of buenos aires, autonomous city of buenos aires, chaco, córdoba, corrientes, entre ríos, Jujuy, la pampa, mendoza, misiones, neuquén, santa Fe, salta, tucumán.

autonomous city of buenos aires, province of buenos aires, corrientes, la pampa, salta.

national.

national.

national.

autonomous city of buenos aires, catamarca, córdoba, corrientes, entre ríos, Formosa, la rioja, misiones, province of buenos aires, río negro, salta, san Juan, santa Fe.

national

la rioja, río negro, salta.

national.

province of buenos aires, autonomous city of buenos aires.

national.

corrientes.

autonomous city of buenos aires.

province of buenos aires, santa cruz, misiones, chaco, entre ríos, corrientes, santiago del estero, autonomous city of buenos aires, salta, neuquén, chubut.

DEScRIPTION

promotes access to higher education for underprivileged young people by means of scholarships and personalized tutor assistance.

support to low-income young students in their higher education through contributions to university / social organizations scholarship Funds.

training in the importance of personal planning, finance and the banking system, adopting and strengthening citizenship values.

support to secondary school students through scholarships. Free service to open and maintain savings accounts to manage grants.

competitions aimed at supporting the work of teachers and the efforts of schools, awakening students' interest and the performance of participatory projects.

promotion of art among children and young students who attend public and private schools, through workshops and specialization scholarships.

publication of pedagogical videos in the internet regarding the educational sessions carried out at the book Fair, and support to face-to-face teacher's advanced course and training sessions.

aimed at making the educational community aware of the importance of educating with regard to the values as focal point for the comprehensive education of the individual and the society.

publication in the internet of high-quality videos, both from the conceptual and didactical points of view, to strengthen the teachers' resume and to inspire teaching.teachers receive training in the use of the videos.

training for young professionals selected by enseñá por argentina, who are prepared to lead at schools and classrooms in social vulnerability environments.

aimed at making people aware of the importance of reading for personal development and the growth of societies. Winners are trained, reading spaces are created, and winning institutions are offered distance pedagogical advice.

aimed at improving education, decreasing retention and collaborating with the creation of public policies.

aimed at coordinating with civil society organizations, and public and private sectors in order to promote public policies encouraging equity, growth and sustainable development.

aimed at facilitating building, equipment conditions, online platform and supplies of schools and universities.

G4-15, G4-SO1, G4-ec7

COMMuNiTy



WORK PROMOTION

Del Emprendimiento a la Pyme (From the Business to SMEs)

there are around 9,000 smes in arGentina, Which Generate 45% oF Gdp. every year, 16% oF the economically active population starts neW proJects.

accordinG to Global entrepreneurship monitor, arGentina ranks seventh in the entrepreneur World rankinG, and out oF the total businesses created, only 52% eXceed Four years, and aFter 6 years only 23% continue.

“i Would like to thank you For your hard Work and eFFort to carry out the proGram. it is important For entrepreneurs that the problems We Face every day be understood, but it is more important to be Given tools that Will alloW us to see our daily reality With another perspective. aGain, thank you very much! ”

GABRieLA A. ReSicHconsultora soluciones integrales s.h. – baradero, buenos aires.

En 4 ediciones

over

3.000 entrepreneurs reGistered

over

1.500 entrepreneurs trained

over 37.480traininGhours

Since 2007 we have fostered, nationwide, the program Del Emprendimiento a la Pyme (From the Business to SMEs) together with FUNDES Argentina.

This program, which lasts two years, deals with different stages with the purpose of strengthening entrepreneurs and increasing their competitiveness through the inclusion of new concepts, tools and knowledge to consolidate and empower their undertakings and make them professional.

In 2013 we carried out the IV Edition of this program. 1,343 entrepreneurs registered, out of which 949 were selected to participate in the courses delivered in 13 locations throughout Argentina: Autonomous City of Buenos Aires, Comodoro Rivadavia, Córdoba, Corrientes, Mar del Plata, Mendoza, Misiones, Neuquén, Río Grande, Rosario, Salta, Santa Fe and Tucumán.

In 2014, 339 entrepreneurs took part in virtual mentoring, 160 finished their business plan and 2 undertakings were formalized.

in alliance With the business school oF universidad católica argentina (uca), we carried out an eXecutive proGram eXclusively desiGned For participants From all the editions oF the proGram Who Would have completed their business plan, be in the First development staGes, have businesses under Way and Would like to assess and improve manaGement.

67 entrepreneurs From 6 provinces oF argentina took part (60 attended and 7 took part via streaming) and satisFaction results obtained Were oF 100% compliance.

1. TRAININGMonthly meetings are carried out, where the following modules are dealtwith: Human resources; marketing; legaland tax issues; accounting and finance;strategic planning and business plan;digital communication and 2.0 tools.

2. MENTORING20 hours of virtual mentoring are allocated to each entrepreneur for the preparation of the business plan.

3. fORMALIZATION professionals support and provide

advice to entrepreneurs whichundertakings are not formalized

yet so that they can obtain legal personality.

4. AccESS TO cREDITFormalized entrepreneurs have the possibility to be

assessed under exceptional conditions to have access

to a specially designed funding line.

nps: 100%

4 STAGES

G4-FS7, G4-FS14, G4-ec7


WORK PROMOTION

INITIATIVE

STRA

TEGI

c ALL

IANc

ESIN

SIGN

IA P

ROGR

AMS

SUPP

ORT T

O EN

TREP

RENE

URS

PROM

OTIO

N Of

M

IcRO

fINAN

cEPR

OMOT

ION

OfEN

TREP

RENE

URS

TRAI

NING

fOR

EMPL

OyAb

ILITy

LAbO

R IN

TEGR

ATIO

N Of

INDI

VIDU

ALS

WIT

h DI

SAbI

LITIES

RURA

L DEV

ELOP

MEN

T

ORGANIZATION

Fundes, contribuir

radim

asociación civil “de puertas abiertas al trabajo”

nuestras huellas, proem, Fundación Juniorachievement, Fundación simoca,Fundación marzano

cáritas argentina, pies descalzos

amia

anspac, Fundación cuba, obra don bosco, media pila, Funda-ción social para el bienestar de la Gente, Fundación arché

reciduca, Fundación paz por la no violencia Familiar, Forge, colegio madre teresa

Fundación par, discar

responde

cruzada patagónica, Fundación bunge y born, profesorado ciencias agrarias y protección ambiental (procaypa), niwok

PROGRAM NAME

del emprendimiento a la pyme (From the business to smes)

Financiamiento a instituciones de microfinanzas (financing to microfinance institutions - imFs)

banquitos solidarios (solidarity small banks)

apoyo a emprendedores (support for entrepreneurs)

economía social (social economy)

servicio de empleo (employment services)

talleres de formación en oficios (labor training Workshops)

Formación laboral para Jóvenes (Work training for young people)

educación y apoyopara el empleo (education and support for employment)

recuperación de pueblos en riesgo de desaparecer (recovery of towns that are at risk of disappearing)

Fortalecimiento de comunidades rurales (strengthening of rural communities)

bENEfIcIARIES

1.563 entrepreneurs

61 organizations234 líderes sociales5 students

41 entrepreneurs

214 entrepreneurs

163 entrepreneurs

220 unemployed

796 entrepreneurs

125 unemployed

397 unemployed30 entrepreneurs

736 habitantes

2,650 entrepreneurs20 docentes160 students7 schools

LOcATION

national

salta, Jujuy, chubut, santa Fe, misiones, corrientes, córdoba, mendoza, province of buenos aires, autonomous city of buenos aires.

province of buenos aires

province of buenos aires, mendoza, tucumán.

province of buenos aires.

autonomous cityof buenos aires.

province of buenos aires, autonomous city of buenos aires, córdoba.

province of buenos aires, autonomous city of buenos aires

autonomous city of buenos aires

buenos aires (san enrique), entre ríos (la clarita).

province of buenos aires, neuquén, río negro, chubut, Formosa, misiones.

DEScRIPTION

training is offered to entrepreneurs to enhance the management of their businesses, creating perspectives for the future formalization of their businesses. support is provided to those entrepreneurs who decide to formalize their undertakings.

credit line for the financing of microfinance institutions so that these can perform their microcredit-related activities. strengthening of microfinance institutions through sessions and training in the subject.

microcredit with training and community organization.

training of entrepreneurs in enterprise management, with financial assistance and mentoring.purchase of products made by entrepreneurs for the bank's activities and for corporate gifts.

in socially-excluded communities, it develops a model of economy based on associative and solidarity relationships, promoting capabilities, creating income sources and strengthening social links.

Workshops aimed at increasing work opportunities and employability conditions.

training offered to low-income women, young people and adults, with the purpose of providing them with tools and a comprehensive training that will allow them to be better individuals and possibly entrepreneurs.technical training to facilitate access to employment.

support to young people so that they complete their education, thus favoring the transition from the school stage to the labor stage.

development of a work profile for individuals with disabilities, according to market requirements, in order to facilitate the job searching process, and follow-up by trained professionals.

it promotes the social and economic development of small towns, surveying their social and economic profile and their natural and cultural resources, and making their history known. training sessions on the undertakings are carried out, and support is offered to promote and advertise the towns and their undertakings.

development opportunities for families from rural communities, fostering sustainable family agriculture through diversification and productive improvements, as well as technical and legal training.

G4-15, G4-SO1, G4-ec7

COMMuNiTy

“We talked continuously With the bank's branch manager -we had an open dialogue-, and we assessed priorities as a team. noWadays, the public and private sectors cannot pretend they do not notice the problems the community Faces. We must Work toGether”. norberto pilone, director of the municipal sub-reGional hospital ”

norberTo Pilonedirector of the municipal sub-regional hospital “dr. Felipe a. Fossati”, balcarce, province of buenos aires.


Proposals for improvement include equipment, hospital resources and infrastructure for public health institutions throughout Argentina.

Thanks to the 14 improvements effected this year in hospitals and primary health care centers, we exceeded 60 implementations of hospital improvements. In 2014, the health care provided to 388,259 patients was benefited.

This program offers the opportunity to promote a work management where the private sector, the public sector and the third sector are coordinated.

HEALTH

Mejoras en Hospitales y Centros de Salud (Hospitals and Health Centers Improvement)

accordinG to the arGentine social debt barometer (barómetro de la deuda social) developed by the universidad católica ar-Gentina, 36.7% oF the population only has access to the public health system in arGen-tina. even thouGh 56% oF the population has a trade-union health plan, it resorts to the public hospital When the need arises. only 7.3% oF the population Gets care throuGh a private health insurance system.

Taking into consideration this environment, since 2009 we have been promoting the Programa de Mejoras en Hospitales y Centros de Salud (Hospitals and Health Centers Improvement Program) with the following goals in mind:

To contribute to the improvement of the quality of care and, therefore, the quality of life of health system’s users in Argentina.

To support, strengthen and promote the work of doctors.

equipment

68%hospital resources

18%inFrastructure

14%

66 hospitals supported since 2009

in 23 provinces

over 1.300.000beneFiciaries

cáRITASIt offers advice, assessing the identified

needs pursuant to sustainability and urgency

criteria. it also reviews impact after implementation.

hEALTh INSTITUTIONS

AND MUNIcIPALITIESThey share their

needs, help with the implementation process and implement the improvements decided.

PROGRAM ACTORS

bRANch MANAGERThe branch manager identifies the priority needs in the area, chooses the beneficiary

institution and receives the specific requests

for help.

•

•

nps: 87.5%

G4-ec7


HEALTH

INITIATIVE ORGANIZATION

cáritas argentina

coas, damas rosadas, Fundación del hospital de clínicas, Fundación dr. Juan a. Fernandez, asoc. coop. del hospital Gutierrez, Fleni, Fundación policia Federal argentina, Fundación los Grobo.

conin, haciendo camino, redinfa

solidagro, movilizarse

sociedad argentina de diabetes (sad), Fundación para la salud materno infantil (Fundasamin), Fundación instituto leloir

alpi, Fundaler, asociación distrofia muscular (adm), Fundación dr. enrique rossi, Fundaleu, esclerosis múltiple argentina, Fundación aciapo, Fundación natalí dafne Flexer, Fusavi, hospice buen samaritano, hospice san camilo

proyecto surcos

Faba

las lomas oral asociación civil, comisión para las personas con discapacidad (arzobispado de buenos aires)

Fundación baccigalupo, nuevas olimpíadas especiales, cilsa

manos abiertas, padres de schoenstatt, hogar maría del rosario de san nicolás, Fundación tzedaká, Fundación volver a crear, hermanas de la misericordia

PROGRAM NAME

mejoras en hospitales y centros de salud(hospitals and health centers improvement)*

prevención de la desnutrición infantil (children malnutrition prevention)

redes de apoyo, capacitación ycontención (supportand trainingnetworks)

Formación para el trata-miento de enfermedades (training for thetreatment of diseases)

acción social(social action)

sistema de información para Gestión territorial en salud (information system for health-related land management)

enfermedadeszoonóticas (zoonotic diseases)

estimulación temprana (early stimulation)

integración a través del deporte (integration through sports)

integración a través de espacios de contencióny apoyo personalizado(integration throughpersonalized support Forums)

bENEfIcIARIES

21 health centers446,928 patients

782 social leaders276 organizations553 patients47 students

163 social leaders265,000 young individuaals800 students820 patients21 organizations1 school

14 organizations29 students180 researchers

24 organizations6,776 patients260 social leaders5,043 students

6 organizations52 social leaders

40,000 students

3 patients

25 organizations510 atletas30 docentes

1,001 patients2,625 students9 docentes20 schools

LOcATION

national

province of buenos aires, chaco, salta, mendoza, misones, santa Fe, córdoba, entre ríos, santiago del estero, tucumán, autonomous cityof buenos aires.

province of buenos aires, santa Fe, córdoba, la pampa, tucumán, salta,san Juan, corrientes, chaco, Formosa, uruguay.

córdoba, tucumán, province of buenos aires, autonomous city of buenos aires, salta, misiones.

national.

misiones.

province of buenos aires.

province of buenos aires, autonomous cityof buenos aires.

autonomous city of buenos aires, province of buenos aires, salta, santa cruz, santa Fe and misiones.

province of buenos aires, salta, autonomous city of buenos aires, Formosa.

DEScRIPTION

seeks to improve the health care provided to patients in public health institutions through contributions of equipment, hospital resources and infrastructure remodeling. contributions are made directly or else through civil society organizations.

support to csos of health dedicated to the equipement and investigation of the structure of the hospitaks of buenos aires

training for social leaders so that they can share what they learned at their areas of influence.training, care and on-site follow up for women and children at social and nutritional risk.

networks for the distribution of food, medications, equipment, clothing and knowledge.

training and equipment for health and research professionals in order to enhance their knowledge and skills.

support for the treatment of patients suffering neuro-orthotic pathologies, oncologic, cardiological, opthalmologic diseases, asthma, multiple sclerosis, muscular dystrophy and terminal diseases.

computerized management platform to survey, analyze and give priority to health-related data, aimed at the development of efficient actions.

this program fosters the prevention of diseases transmitted by pets, as well as the responsible care of animals.

therapeutic care and comprehensive educationfor children who have development problems.

sports activities with participation in national and international tournaments.

creation of art forums, labor training workshops, and school support. promotion of non-formal education, with psychological, psychopedagogical, health and feeding support.

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G4-15, G4-ec7, G4-SO1

* para conocer las instituciones beneficiarias ver el informe complementario en galiciasustentable.com.

COMMuNiTy


PROGRAMA INTERACTIVO DE AYUDA POR REGIONES (PRIAR – REGION-BASED INTERACTIVE ASSISTANCE PROGRAM)

the proGrama interactivo de ayuda por re-giones (region-based interactive assistance program – priar) corporate volunteering proGram has promoted 189 solidarity pro-Jects. it Was created in 2002 as an initiative oF banco Galicia’s employees to help the more disadvantaGed sectors throuGh sustainable projects in non-profit organi-zations, and it Works under ayudando a ayudar civil association.

Volunteers throughout Argentina promo-te projects related to infrastructure and equipment improvements and training in soup kitchens, schools, children’s homes and hospitals, with the collaboration of customers, suppliers and friends. 13 new projects started in 2014.

People can take part in different ways: They can promote a mid- or long-term Solidarity Project and take part in it, participate in a Todos Somos Protagonis-tas (We Are All Main Players) one-day project, make an in-kind or cash donation within the framework of the solidarity campaigns promoted by the Central Areas, or else adhere to the monthly contribution through automatic debit.

Employees can submit a solidarity project that, in order to be implemented, shall comply with certain selection criteria, for example the following: the needs must be a priority; the institution shall be regis-tered and legally authorized to operate; the project shall allow the active partici-pation of volunteers; the help provided shall make the entity’s self-sustainability possible; and the project must be feasible, taking into consideration the resources of the area.

New PRIAR’s President

The year started with a new president of Ayudando a Ayudar Civil Association: Santiago Ruiz Guiñazú, Manager of Metro I, left the position he held, and it was occupied by Diego Baccini, Manager of the Middle-market Banking segment of the Wholesale Banking Division, PRIAR Team Leader since the beginning of the program. One of his most outstanding participations was the solidarity campaign for the benefit of the people affected by the floods in La Plata in 2013.

During the term of his office, he seeks to promote, together with the PRIAR General Coordination and volunteers, new initia-tives that would allow continuing to take the PRIAR program throughout Argentina.

PRIAR Regional Coordinators

PRIAR appointed Regional Coordinators to be referents of the employees in each re-gion where the Bank is present. Regional Coordinators were chosen based on their leadership, drive and spread skills.

Their goals are generating new solidarity projects that allow establishing new ca-pacities in non-profit organizations, with the active participation of volunteers from the area, providing an answer to social concerns from peers and providing tools to channel such concerns.

In order to occupy their role, they received training in social projects and mana-gement and communication tools, and they conducted an innovation exercise to devise new fundraising actions.

priar indicators

2012 2013 2014

beneficiaries since the program’s inception

25,869 29,999 43,857

volunteers since the program’s inception

4,114 4,477 5,154

projects since the program’s inception

162 176 189

projects completed (accumulated)

115 133 147

projects completed during the year

17 18 14

projects under execution 30 25 38


Outstanding Actions

More than 50 managers of the Commu-nity of Leaders promoted a project at La Concepción School in the islands in Tigre. They carried out activities related to infrastructure improvement, training in the prevention of children malnutrition and primary health care, with the colla-boration of Fundación Cuerpo y Alma, Fundación Oficios and CONIN.

In turn, the young people who belong to Futuro Galicia (Galicia Future) made up-dates to the kinesiology area of Dr. Ricar-do Gutiérrez Children’s Hospital, together with the Programa de Mejoras en Hospi-tales y Centros de Salud (Hospitals and Health Centers Improvement Program). They painted walls, tables and equipment, repaired furniture and hanged curtains.

TODOS SOMOS PrOtAgOnistAs (We Are All MAin PlAyers)

driver institution location

multisector banco de ali-mentos

munro, province of buenos aires

Galicia insurance hábitat para la humanidad

la boca, autonomous city of buenos aires

scholarship holders in the “boosting your talent” program

san pompilio scouts

san miguel, province of buenos aires

environmental management system

puesta en valor de plaza (updating of a park)

los piletones, autonomous city of buenos aires

community of leaders

la concepción school

tigre, province of buenos aires

multisector techo González catán, la matanza, province of buenos aires

organizational development and human resources

ingeniero hugo matiello agrotech-nical school

mercedes, province of buenos aires

Futuro Galicia (Galicia Future)

r. Gutiérrez General children’s hospital

palermo, autonomous city of buenos aires

retail banking special school no. 518

la plata, province of buenos aires

Galicia insurance techo b° los tronquitos, Florencio varela, province of buenos aires

iniciados en 2014●Finalizados en 2014●

bUENOS AIRESFundación monseñor di pasquo, avellanedasonrisas Foundation, esteban echeverría Fundación monteleone, Glewkindergarten no. 906, Gral. villegassheltered Workshop, Junínreferral center for children and adolescents, luján potencialidades Foundation - madre teresa play-center, máximo paz, cañuelascasa de la mujer y la Familia civil association, morenoseis esquinas primary health care center, necocheala casita children’s home, paso del rey, morenokindergarten no. 901, pinamapapmai center (programa de asistencia y prevención del maltrato y abuso infantil – program for the assistance and prevention of child abuse), quilmeslos bajitos soup kitchen, tigrevolver a creer Foundation, villa elisa, la plata

AUTONOMOUS cITy Of bUENOS AIRESschool of medicine, recoletaFundación argentina de afasia (aphasia argentine foundation) – charlotte schwarz, recoleta

chAcOcarita sucia soup kitchen - resistencia

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cóRDObAla posta de la caridad shelter, Jesús maríahilario ascasubi kindergarten, recta martinolliinstituto divino niño, río cuartovínculos, programa de prevención y asistencia al Joven (bonds, prevention and assistance program for young people), san Francisco

cORRIENTESpadre leopoldo mandic rehabilitation institute for special children, corrientes

ENTRE RíOSesperanza nursery school, GualeguaychúJosé manuel romero rural school no. 183, maría Grande

fORMOSApilaga iii school no. 117, Formosacommunity center, ramón lista

LA PAMPAassociated kindergartens no. 8, and school no. 66, General pico

MENDOZAFundación marzano, cruz de piedra, maipúnuestra señora del milagro association, Guaymallénbernardo razquin school no. 1-694, Guaymallén

RíO NEGROarco iris kindergarten,bariloche

SAN JUANcomodoro rivadavia school, 25 de mayo, san Juanhebe videla de oro special education school, albardón, san Juan

SANTA fEayúdame a ayudar soup kitchen, reconquistaGral. manuel belgrano school no. 669, rufinosan martín de porres school, santa Fe

TUcUMáNbrígido teran school, los ralos

PRIAR’SPROJECTS

COMMuNiTy

SuppLiERS

spupiersl54 ● 2014 SuSTAiNABiLiTy REpORT

PROcESS fOR ThE SELEcTION, hIRING AND ASSESSMENT Of SUPPLIERS We analyze more than legal and labor aspects; we also include social and environmental criteria.

SIGNATURE Of ThE cODE Of cONDUcT AND ENVIRONMENTAL POLIcy during the process for the approval of suppliers, to ensure compliance with standards regarding ethics, transparency, human rights and the environment.

RESPONSIbLE PURchASESWhere we include within our supply chain sustainable undertakings that add value to the society as a whole due to a positive environmental impact, and to local communities as well.

cOMMUNIcATION chANNELSto have a constant and transparent dialogue that allows us to conduct transactions in a dynamic way, seeking to create loyalty regarding the relationship with suppliers in the long term.

fINANcIAL bENEfITTO SUPPLIERSby offering them a free bank account.

code oF conduct

at banco Galicia, We continue WorkinG With our value chain to build relationships based on trust, transparency and respect in a responsible and sustainable environment, considerinG suppliers our best partners at the time oF renderinG a distinctive service to our customers.

in this respect, We have a code oF conduct For suppliers that, toGether With our environmental policy, must be siGned by suppliers When the bank hires them.

Furthermore, in order to encouraGe a responsible consumption, durinG 2014, We updated our directory oF sustainable suppliers Who oFFer products and services takinG into account environmental or social criteria, primarily For the purchase oF supplies and corporate GiFts.

SuppLiERS


OUR SUPPLIERS’PROFILE

PROCESS FORHIRING ANDASSESSING SUPPLIERS

In order to ensure transparency in the process for hiring and selecting suppliers, we have a Purchase Manual, which details the steps to take to purchase products and services that have an impact on our business's transactions. This manual includes the Purchase Code of Ethics, the Administrative Procedures and the Commercial Policy on the Treatment Given to Suppliers.

The Bank’s employees who make purchases must know this document with the purpose of respecting the Bank's values, management ethics and process transparency.

In addition, since 2007, suppliers must sign the Code of Conduct, and since 2010, the Environmental Policy in order

to commit themselves to complying with our principles and values, the laws, fighting against corruption, the principles of the United Nations Global Compact and protecting natural resources when doing business. These documents shall be submitted when the supplier is approved, together with an affidavit where the company attests compliance with the laws, labor regulations and any requirement necessary for the performance of the agreement signed with the Bank.

Also, we assess our suppliers by different mechanisms: internal and external audits of the purchase, hiring and monitoring processes; visits to production plants; follow up to indicators, which allow us to know in detail their profile and commercial behavior. Suppliers of critical supplies or services have specific agreements which degree of fulfillment is particularly monitored, taking the corrective measures and making improvements, as necessary.


distribution of payments to suppliers by area

● 2,460 suppliers from the city of buenos aires and Greater buenos aires● 399 suppliers from the central area● 141 suppliers from patagonia● 123 suppliers from the cuyo region● 90 suppliers from the northeast of argentina● 58 suppliers from the northwest of argentina

number of suppliers by turnover

● 2,602 suppliers with payments below ps. 500,000● 365 suppliers with payments above ps. 1,000,000● 235 suppliers with payments above ps. 500,000● 69 suppliers with payments above ps. 10,000,000

banco Galicia’s principles and values.principles oF the united nations Global compact.responsibility, saFety and conFidentiality With reGard to inFormation.respect For the laW and taX proceedinGs.business loyalty and honesty.protection oF the environment and respect For the reGulations related thereto.validation oF equality and diversity.compliance With labor laWs and a diGniFied Work environment.

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••

Aspects Included in the Code of Conductfor Suppliers58

neW suppliers read and siGned the code oF conduct and the environmental policy

557

58. to see the complete code, please visit bancogalicia.com

G4-12, G4-ec9

G4-en32, G4-en33, G4-LA14, G4-LA15, G4-HR10, G4-HR11, G4-ec8, G4-DMA

RESPONSIBLE CONSUMPTION FOR THE BENEFIT OF THE ENVIRONMENT ANDLOCAL COMMUNITIES

We seek that our purchases cause a positive economic, social and environmental impact. We make inclusive purchases by hiring suppliers who create environmental value and support the local communities' development. These are social businesses, individual undertakings, social organizations and SMEs, which work with sustainability criteria.

Valor Program

We renewed the agreement related to the Valor Program that AMIA and the IDB promote through FOMIN to foster sustainable management in the value chain and favor its development.

Through this program, we intend to work on sustainability matters with supplier and customer SMEs for the purpose of sharing the Bank's values, strengthening the bonds, increasing operating efficiency and building long-standing relationships based on trust, transparency and respect.

The work plan has three phases: 1. Awareness of the general conceptsof Corporate Social Responsibility (CSR) and sustainable management. 2. Training in different CSR areas: corporate governance, social investment, environmental management, labor practices, communication and reporting. 3. Intensive consulting, where a team of local professionals provided by the Valor Program will work with SMEs on implementing sustainable improvements.

During 2014, we carried out the first stage of the project, with the participation of 32 representatives from 21 companies from

Rosario and neighboring areas. During 2015, we plan to implement the othertwo stages.

Directory ofSustainable Suppliers59

This publication is intended to promote responsible consumption offering both our bank and the external public a list of companies that provide products and services within the framework of fair trade, and social and/or environmental protection. In this new edition, prepared along with Asociación Civil Contribuir al Desarrollo Local60, we detail the sustainable criteria, both social and environmental ones, suppliers must meet to be added. Moreover, the Directory provides entrepreneurs with pieces of advice on how to sell, and companies, what must be considered upon purchasing.

SuppLiERS


social criteria

provides social value through a product or service that offers solutions or improvements as regards social, housing, health, education, travel and transport matters in highly-vulnerable populations.creates job positions in areas of low employment offer.hires people or suppliers focused on people integration (disability, gender, native peoples).contributes to reducing poverty.Fosters honesty, cooperation, work ethics values.encourages associability.improves education, training and ranking of the currentlabor market.recovers local trades, and moral and cultural values.Generates local social and cultural capital linking work and production to cultural heritage and local knowledge.produces or certifies under fair trade standards.facilitates access to public goods and services – water, transport, health, education – and markets.

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environmental criteria

offers services or products that promote the three rs: reduce, reuse and recycle.introduces the concept of clean production using lower carbon or water footprint supplies and processes.implements the internal three rs program: reduce, reuse and recycle.offers services, technologies or products that foster the restoration of ecosystems, courses of water, forests or pastureland.markets or produces products with organic or biodynamic certification.Fosters environmental protection.

this year, We bouGht products and hired services From the FolloWinG orGanizations, amonG others:

cooperativa la JuanitaFundación cruzada pataGónicaFundación marzanoFundación pro yunGasFundación san JosÉ providenteondulÉ JuGuetes ecolóGicosplantarsepomadasustentator s.a.

•••••••••

supplier identificationCriteria

59. For more information, please visit: http://www.galiciasustentable.com/Galiciasustentable/home/Gs_Guia_proveedores_sustentables.pdf60. civil association specialized in designing and implementing local productive development programs, which also takes part in the organization of mayma, an entrepreneur development program for organizations and companies which want to leverage in the market creating social and environmental value.

ENViRONMENT


ernvnmeno it

ENViRONMENT


enerGy savinG proJects

at banco Galicia, electric poWer consumption is the maJor source oF emission oF Greenhouse Gases.

accordinGly, in 2013, We beGan an enerGy savinG proJect aimed at a more eFFicient consumption oF such source both at main buildinGs and branches.

durinG 2014, We Focused on completinG the survey oF enerGy consumption at branches, and analyzinG the actions that beGan beinG Gradually implemented this year and are intended to shoW improvements durinG 2015.

ENVIRONMENTAL MANAGEMENT SySTEM (SGA AS PER ITS INITIALS IN SPANISh)environmental awareness program – resource optimization program – program for the rational use of electric power, Water and natural Gas - indirect environmental risk program

ENERGy SAVING PROJEcTSenergy efficiency in electric power consumption

EcO RESPONSIbLE bRANchESeco responsible branch program: recognition – thank you for your commitment to the environment – waste separation at branches in the city of buenos aires

ENVIRONMENT PRESERVATION fUND (fOcA AS PER INITIALS IN SPANISh) - fIfTh cALL fOR PROPOSALS2014 edition – loss of biodiversity in argentina

bANcO GALIcIA AT ThE INTERNATIONAL fINANcIAL cOMMUNITyFinancial initiative of the united nations environment program (unep-Fi) Global compact

cREDIT LINES fOR ENVIRONMENTAL IMPROVEMENTsan Juan quality program

cLIMATE chANGEour corporate carbon Footprint

v

ENVIRONMENTAL MANAGEMENT systeM (sgA)

Banco Galicia’s sustainability strategy includes an important environmental management that makes it be one of the major references in our country.

During 2014, we focused our actions on the awareness of and follow-up to the environmental management system’s activities in order to strengthen its operating aspects and employees’ commitment.

The environmental management system comprises the whole organization and is managed through four main programs: environmental awareness, resource optimi-zation, indirect risks and rational use of energy, water and gas.

Throughout this year, we focused on developing areas related to our employees’ awareness by means of initiatives and activities carried out to improve our environmental performance.

The following strengths should be highlighted:

All the staff’s degree of professionalism and proac-tivity, evidencing their involvement with the ma-nagement system and the commitment towards the ongoing improvement.

The status of the building premises, and the building management system that automatically controls and monitors the electric and mechanical systems of the building, allowing a more efficient consumption of resources.

EnvironmentalAwareness Program


enVironmenTal awareness sUrVeYWe have carried out environmental surveys over the phone to 300 employees oF the corporate toWer to assess the level oF aWareness oF the environmental manaGement. this year We can hiGhliGht that there Was a siGniFicant improvement in our employees’ knoWledGe about all aspects contemplated by the environmental policy.

iSO 14001this year bureau veritas conducted the second audit oF surveillance oF the environmental manaGement system For banco Galicia’s corporate toWer under iso 14001 standard:2004, based on the recertiFication obtained in 2012.

evolution of the level of knowledge of the bank’s initiatives to improve the environment

100%

80%

60%

40%

20%

0%

2012 2013

92.9% 94.5%

2014

94.7%

aspects contemplated in banco Galicia’s environmental policy

100%

80%

60%

40%

20%

0%

foster the efficientuse of natural resources

promoteenvironmental

awareness

prevent pollution and improve our environmental performance

ensure compliancewith environmental

laws

75.1% 58.8% 43.3% 24.2%84.0% 88.7% 82.3% 74.7%

● 2013 ● 2014

oF the banks’ employees is aWare oF environmental policy aspects accordinG to the results obtained From the Great place to Work´s Work environment survey.

91%

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G4-14, G4-FS9, G4-DMA G4-26, G4-27

The main initiativesin 2014 were:

Visits to the Corporate Tower: We made 10 visits to the Corporate Tower, where 133 leaders of area and employees in general participated, thus fostering greater awareness of the environmental aspects and impacts of our activity. Additionally, there were further matters related to emergency response and fire evacuation drills.

6th Edition of the Environmental Drawing Contest: In order to make children aware of environmental matters, employees’ children and schoolchildren from PRIAR (PROGRAMA INTERACTIVO DE AYUDA POR REGIONES – REGION-BASED INTERACTIVE ASSISTANCE PROGRAM) were invited to participate in the drawing contest. This year 304 kids participated in this contest.

Environmental Management Online Courses: Over the last two years, 420 employees learnt more about ISO 14001 Standard application.

Reduction of the Use of Plastic Glasses: Consolidating the campaign of using reusable glasses, we managed to reduce the number of plastic glasses used in coffee machines at the Corporate Tower by 6.54%.

Communication and Environmental Awareness Material for Information Purposes: This year we issued over 364 communications on environmental awareness. Through our internal and external channels, we disseminated information about our management.

Natural Resources Protection Awareness Campaign: On the International Environment Day, we invited our employees to take part in an in-house activity aimed at knowing Banco Galicia’s environment protection, preservation of resources and management.

Volunteering Activity Performed by Banco Galicia’s Environmental Management Team: This year we took part in the Limpiá el aire, plantá un árbol (Clear the Air, Plant a Tree) campaign, an initiative of the Secretariat of Habitat and Inclusion of the City of Buenos Aires, jointly with Fundación Suma, which is intended to promote the forestation of vulnerable areas under unified management.


ENViRONMENT

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Management ofOffice supplies

We managed our consumption of paper and printer cartridges, resources highly used in our activity, to optimize the use of office supplies. During this year, we took measures that allowed a more responsible use of these resources:

Reusable Envelope Consumption: 332,350 envelopes were reused. A legend was added to the envelope to encourage reusing envelopes for internal use of four boxes.

Certified White Paper and Printer Cartridges Consumption: Banco Galicia uses FSC certified paper or sugarcane bagasse both for internal use and for credit card statements and self-service terminals. During 2014, 8,396 printer cartridges were used up.

Paper Recycling: At Banco Galicia, we encourage paper recycling at all our offices and branches. This year we recycled 68.22 tons of paper at our headquarters and 94.34 tons of file paper.

Consumption of Oxo-biodegradable Polyethylene Bags for Internal Use: These bags are used to carry Banco Galicia’s internal documentation. During 2014, 321,885 bags were used.


Waste Management

Recycling of Plastic Bottle Caps: During 2014, 571kg of plastic bottle caps were collected for the Programa de Reciclado de la Fundación Garrahan (Fundación Garrahan’s Recycling Program).

Electronic Waste: This year 179.38 tons of electronic waste were disposed of through a specialized provider and 1,990 items of property were donated to social organizations through Fundación Banco Galicia.

Special Waste: 297kg of lamps and fluorescent tubes, over 3,355kg of special waste of our Corporate Tower, Head Office and building located at Perón 518, and 340 l of vegetal oils used were delivered for their treatment and final disposal to specialized companies.

Toner Cartridges Waste: This year 2,350 cartridges were returned to our suppliers, who reused them to manufacture new cartridges, avoiding the consumption of more resources.

Resource OptimizationProgram

decrease in paper consumption For the Whole bank thanks to the eFForts oF reduction manaGement and aWareness oF its use.

20%180

160

140

120

100

80

60

40

20

0

▪ tons of recycled White paper

▪ tons of White paper

▪ tons of recycled File paper

▪ units of printer cartridges

paper recycling, scope: main buildings

White paper and printer cartridges consumption, scope: in the Whole bank

2012

2012

2013

2013

2014

2014

254239

190

11,049

150

178

94

62 66 68

10,4668,396

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G4-en23

G4-en1, G4-en2

In 2014, we broadened the scope of the electric power measurement reporting consumption of 86% of branches, which entails a significant improvement, as compared to the data surveyed in 2013, which covered only 56% of total actual consumption in branches. This increase in the survey explains that this report shows a higher value than the one reported in 2013 in terms of energy consumption. However, an improved Kwh/m2/year efficiency is noted if we compare by extrapolating 2013 data with respect to 2014.

Considering these values, Banco Galicia’s energy intensity ratio is 0.90 GJ. This means that for every m2 of office or branches, 0.90 GJ was required to operate during 2014.

During 2014, the Environmental Assessment System (SEA as per its initials in Spanish) is operating at all of Banco Galicia's branches.

Environmental Assessment System: The software used for the environmental risk assessment in credit transactions (SEA) is operating at all the branches in the country. This allows the involvement of commercial officers in the process through the application, reducing analysis time, increasing the synergy, knowledge and efficiency. The Credit Area resolves and later performs the environmental assessment and issues the final report. ç

Analysis of Environmental Risk in Credit Transactions: The environmental risk in an aggregate amount of 156 transactions was analyzed during 2014. The amount involved totaled Ps. 817.1 million Pesos.


(i) the estimated consumption of 259 branches was included for 2013. pursuant to what is determined by the water company, the monthly consumption per m2 is around 83.35 liters. taking into consideration the 136,543.72 m2 area, the total is around 136,571.03 m3 for the branches. (ii) 1m3 of natural gas = 0.0390 GJ. (iii) branches considered to determine the gas consumption: 142. (iv) 1mWh = 3.6 GJ. (v) branches considered to determine the electric power consumption: 246. (vi) branches considered to determine the electric power consumption: 258. (vii) 1 liter of gas oil = 0.0364 GJ. (viii) 1 liter of gasoline = 0.0330 GJ.

Programa de Uso Racional de la Energía, Agua y Gas NaturalG4-en3, G4-en5, G4-en6, G4-en7, G4-en8, G4-en9

oF actual electric poWer consumption in surveyed branches optimized the kWh/m2/year eFFiciency by 6%, as compared to 2013, throuGh aWareness and buildinG improvement initiatives.

86%

Indirect EnvironmentalRisk ProgramG4-ec2, G4-en27, G4-SO2, G4-FS8, G4-FS10, G4-FS11, G4-DMA

investment proJects oF customers analyzed With reGard to social and environmental risk.

million pesosinvolved

156

817.15

utilities annual consumption

unit 2012 2013 2014

m3 167,979 185,107 (i) 208,714

m3 288,847 289,696

GJ 11,265 11,298 9,846

mWh 55,551 (v) 50,651

GJ 199,982 182,342 191,722

liters 28,095 39,880 22,810

GJ 1,017 1,452 830

liters - 21,866 3,764

GJ - 722 124

WAT

ERNA

TURA

L GAS

(ii)

ELEc

TRIc

POW

ER (iv

)GA

S OI

L (vii)

GASO

LINE (v

iii)

Evolution in quantity and amount of the projects that madeinvaroumental and social risk

evolution by number and amount of projects

500450400350300250200150100500

2,400

2,000

1,600

1,200

800

400

0

20132012 2014

numb

er of

proje

cts

amou

nt (i

n milli

ons o

f peso

s)

▪ number of projects ▪ amount (in millions of pesos)

473 368 1562.324,77 1.714,73 817,15

share by amount and number

shareamount

sharenumber

2013 2014 2013 2014

primary production

24% 22% 33% 32.05%

manufacturing industry

37% 37.23% 27% 26.92%

construction 7% 5.12% 6% 6.41%

Wholesalers 7% 3.95% 9% 7.69%

retailers 8% 11.26% 7% 5.13%

services 17% 20.45% 18% 21.79%

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(iii) 252.472

(vi) 53.256

Equator Principles: Since 2007, we have been the first and only Argentine Bank that has adhered to the Equator Principles, an international voluntary finan-cial initiative that offers guidelines for the social and environmental risk analysis of credit. The Bank sticks to these Principles for the financing of investment projects of more than Ps. 25,000,000. This amount was adjusted to Ps. 100,000,000 in December 2014.

Thus, we conduct an assessment which contemplates the analysis of environmental and social aspects and allows for the classification of projects based on three risk categories:


59. para más información sobre las capacitaciones ver: galiciasustentable.com/is2014/ic

Training sessions of those responsiblefor environmental management61

Training sessions conTribUTing To THe conTinUoUs imProVemenT oF THe enVironmenTal managemenT SySTeM (SGA):

FAce-TO-FAce TRAininG cOuRSeS:iso 14001 standard – internal auditor evacuation plan – leaders of area:environmental risk assessment in credit analysisorientation session – sustainability module:environmental aspects at Work

OnLine: environmental manaGement systemenvironmental risk assessment in credit analysissustainability courseevacuation Guidelines

•••••

••••

environmental expenses and investments (amount in pesos)

2012 2013 2014

Waste disposal, treatment of emissions and environmental remediation costs

30,504.10 30,504.10 23,486.10

prevention and environmental management costs related to the bank´s operations.

937,365.72 761,487.91 1,401,016.35

prevention and environmental management costs related to projects external to the bank.

414,220.89 933,427.68 902,517.46

total environmental expenses and investments

1,382,090.71 1,725,419.69 2,327,019.91

credits under the equator principles

equator principles category number of projects assessed

2012 2013 2014

a (high) 0 0 0

b (medium) 4 1 0

c (low) 49 4 5

total 53 5 5

share by number of projects

share by amount

● 60% manufacturing industry● 20% retailers● 20% services

● 51% manufacturing industry● 34% retailers● 15% services

•

G4-ec2, G4-en27, G4-LA10, G4-SO2, G4-FS8, G4-FS10, G4-FS11

G4-ec2, G4-en27, G4-SO2, G4-FS8, G4-FS10, G4-FS11, G4-DMA

Breakdown of Total Environmental Expenses andInvestments, by Type

Energy Intensity64

Branches

Out of a total of 258 branches surveyed, representing 99% of Banco Galicia’s total branches, a 29,187,753 kwh consumption was recorded in 2014, considering a total area of 13.8072 m2 as a reference. Based on this information, Banco Galicia obtains an efficiency value of 211 Kw/m2/year for 2014.

Main Buildings

Although energy efficiency at main buildings showed a marginal improvement of around 1%, as compared to 2013, actions aimed at improving efficiency in electric power consumption in the mid-term were implemented during the end of the second half of 2014. The impact of these actions is expected to have influence during 2015.

Analysis and selectionof actions implementeds

Broader survey adding electric power consumption data of branches surveyed:

Implementation of actions aimed at improving energy efficiency: During this year, we conducted an important work on analyzing actions intended to improve Banco Galicia’s energy efficiency.


61. For more information on training, visit: galiciasustentable.com/is2014/ic62. all main buildings were included63. a set of 258 branches, out of a universe of 261, was used for branches. the difference of three branches is due to the absence of electric power consumption data. therefore, they are excluded from the estimated reference average64. energy intensity is an average energy measurement, reflecting energy consumption according to the activity level or area. banco Galicia considers its intensity in terms of kw/m2/year.

ENViRONMENT

ENERGY SAVING PROJECTS

considerinG that our maJor corporate carbon Foot-print emission comes From electric poWer consumption, durinG 2014 We Focused on our enerGy savinG proJects beGan in 2013.

This year the survey of electric power consumption at branches was broadened and actions aimed at a more efficient use of electric power in the mid-term both at main buildings and branches began being implemented. Based on the actions implemented during the second half of 2014, the saving results may be noted during 2015. It is noteworthy that the energy saving project is based on reducing the general average at main buildings62, on the one hand, and atbranches63 on the second hand, by implementing action plans intended to have a positive impact on reducing the electric power consumption for the final purpose of reducing the number of emissions of greenhouse gases.

eFiciencia enerGÉtica

2013 average energy intensity 234 kW/m2/year

2014 average energy intensity 211 kW/m2/year

eFiciencia enerGÉtica

2013 average energy intensity 314,3 kW/m2/year

2014 average energy intensity 311,4 kW/m2/year

the average over consumption ratio

900

800

700

600

500

400

300

200

100

0

corporate tower head office building locatedat perón 518

building locatedat Florida 361

● 2013 ● 2014

2013 branches

2014 branches

166

258

•

•

G4-en5, G4-en7, G4-en16

the average over consumption ratio

1.000

900

800

700

600

500

400

300

200

100

0

● coeficiente anual promedio ● 2014

improvement inbranches' eFFiciency6%

● 2013

Branches

Good energy saving practices:

Use the thermostat and the programmer of air-conditioning equipment at temperatures between 24 and 26ºC, according to the season of the year.Optimize preventive air-conditioning maintenance routines so that air-conditioning equipment operates at its optimum efficiency level. Control and follow up marquees’ timers. Replace incandescent bulbs with low-consumption bulbs.

1-

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- -

2-

-

-

1-

- - -

2-

-

-

Improvements implemented:

Replacement of central air-conditioning equipment with technology of increased energy efficiency:

Installation of a sun control film (thermal radiation on glasses) achieving a 5% energy consumption sa-ving at branches: 20 Plaza Alemania and 4 Monserrat

Main buildings

Good energy saving practices:

Optimize occupation/vacancy time.Switch off outdoor signs in months of energy crisis.Systematically monitor air-conditioners’ set point temperatures.

Improvements implemented:

Head Office: Installation of a sun control film at Head Office (floors 2 to 6 – implemented). Systematic monitoring of air conditioner's set point temperatures.Corporate Tower: Change to LED technology in devices on emergency stairs.


branches

83 independencia/mdp 59 merlo

123 General pico 54 lanús

57 ciudadela 180 adrogué

314 estación agüero 182 parera

61 banfield 90 remedios de escalada

139 moreno 67 nazca (two pieces of equipment)

14 liniers 158 paternal

Through the Eco Responsible Branches project, we invited all branches to recycle papers and cardboards, and protect natural resources at workplaces.

2014 ECO RESPONSIBLEBRANCHES

all branches in the autonomous city oF buenos aires manaGe their Waste by sortinG.

in 2014, We continued promotinG the environmental protection at branches throuGh initiatives related to Waste separation and the aWareness oF protectinG natural resources. activities Were primarily intended For branches in the autonomous city oF buenos aires.

G4-en5, G4-en7, G4-en16

G4-en10

number of eco responsible branches (accumulated)

1101009080706050403020100

oct-1

2

nov-1

2

dec-1

2

Jan-13

apr-1

3

Jun-13

Jul-13

aug-1

3

sep-1

3

dec-1

3

dec-1

4

3 7 8 9 12 16

34 35 37 38

103

•••

Recognition: Thank you for yourCommitment to the Environment

Every year we recognize eco responsible branches which show a great commitment to the environment by taking part in environmental protection initiatives under the Bank’s Environmental Policy and our Environmental Management System.

This year the branches that received the award stood out for their excellent management in:Waste separationReduction of energy consumptionTraining in environmental risk analysis

Eco responsible branches recognized with the ¡Gracias! Por tu Gestión Ambiental (Thank You! For Your Environmental Management) award in 2014 are as follows:

Waste Separation at Branches in the City of Buenos Aires

Banco Galicia, as part of the Programa de empresas amigas de ciudad verde (Program for Green City-Friendly Companies), helps the government of the City of Buenos Aires separate and collect waste by sorting both at their main buildings and at all branches in the City.

This initiative is also intended to continue reinforcing our commitment to a sustainable development under the framework of our Environmental Policy and Environmental Management System.


autonomous city of buenos airesbranch no. branch name area

11 quintana metro i

64 av. córdoba metro i

182 parera metro i

14 liniers oeste

18 arroyo metro i

in the provinces and Greater buenos airesbranch no. branch name area

172 la plata south

75 rosario santa Fe

176 río cuarto mediterranean

294 rufino santa Fe

138 catedral mediterranean

ENViRONMENT

Biodiversity or Biological Diversity refers to the variety of genes, species and ecosystems present in a given area. The main reasons for the loss of biodiversity are the habitat destruction and fragmentation, the introduction of invasive exotic species, overexploitation and pollution.

Through our Votá y contribuí con la convervación ambiental (Vote and Contribute to Environmental Preservation)

The Environment Preservation Fund (FOCA) was created in 2010 to finance research projects to preserve the environment, thus contributing to a real scientific development and directly to global sustainability.

This year we launched the fifth edition of FOCA, where researchers and civil society organizations presented their projects on “Loss of Biodiversity in Argentina”. We received 170 projects from different researchers and organizations from all over the country. Since 2012, this initiative has had the institutional support from the Argentine Secretariat of Environmental and Sustainable Development and the National Parks Administration.

campaign, the Bank's employees selected the sixth project to finance with the funds collected through the sale of paper recovered from the offices and recycled. The winning project was Restauración de biodiversidad en Bosque Atlántico (Restoration of Biodiversity in the Atlantic Forest): reforestation and bioindicators.


FOCAFondo para la conservación ambiental, quinta convocatoria “pÉrdida de biodiversidad en arGentina”65

proJects received

provinces represented throuGh the participatinG institutions

well-known specialists were appointed as panel oF JudGes

170

19

5

65. to learn about Foca’s panel of judges and special mentions, please visit: galiciasustentable.com/is2014/ic.

G4-en5, G4-en7, G4-en16

aUTHor ProJecT TiTle insTiTUTion DisTricT/agencY

cintia eleonora celsi priority areas for the preservation of coastal pasture in the pampas region

Fundación de historia natural Félix de azara


laura Fasola towards a plan for the comprehensive control of the american mink (neovison vison) in the reproductive areas of the hooded Grebe (podiceps gallardoi)

asociación ambiente sur

santa cruz

Federico kacoliris valcheta frog (pleurodema somuncurensis), somuncura Frog (somuncuria somuncurensis) and naked characin (Gymnocharacinus bergii): three key species to promote the preservation of the somuncura plateau (patagonia, argentina)

universidad nacional de la plata

buenos aires

dieGo varela ecology of routes in misiones:development of a strategic plan to mitigate the impact of routes on wild fauna in the area of influence of parque nacional iguazú (iguazú national park

centro de investigaciones del bosque atlántico (ceiba) (research center of the atlantic Forest)

misiones

Gustavo aparicio project for the preservation of the bonpland palm tree (butia noblickii), an exclusive species of the scarse coastal sandy areas of southeast corrientes.

Fundación habitat y desarrollo

santa Fe

nahuel Francisco schenone

restoration of biodiversity in the atlantic Forest: reforestation and bioindicators

Fundación bosques nativos argentinos para la biodiversidad (argentine native Forests for diversity Foundation)


Winning Projects:

PRIMARY PERFORMANCE INDICATORS (IBASE)

2014 2013Basis for the calculation Amount (in Pesos) Amount (in Pesos)net income (ni) 3,158,000,000.00 1,836,000,000.00net operating income (noi) 9,528,000,000.00 6,441,000,000.00Gross payroll (Gp) 1,443,734,810.18 1,074,530,304.48 internal Social indicators Amount (in Pesos) % of GP % of nOi Amount (in Pesos) % of GP % of nOimandatory social security contributions 445,238,583.64 30.84 4.67 349,413,259.27 30.46 5.42 health66 22,388,787.04 1.55 0.23 18,430,024.44 1.61 0.29 education66 1,153,200.00 0.08 0.01 790,000.00 0.07 0.01 culture66 11,672,980.80 0.81 0.12 24,397,151.00 2.13 0.38professional development and training66 20,461,241.62 1.42 0.21 15,878,205.61 1.38 0.25 child care centers and assistance for child care66 16,531,077.90 1.15 0.17 13,224,224.00 1.15 0.21 total internal indicators 517,445,871.00 35.84 5.43 422,132,864.32 36.80 6.56 external Social indicators Amount (in Pesos) % of GP % of nOi Amount (in Pesos) % of GP % of nOieducation 8,069,618.77 0.56 0.08 5,649,140.27 0.49 0.09 labor promotion 2,478,293.04 0.17 0.03 2,736,492.93 0.24 0.04health and social inclusion 5,737,470.67 0.40 0.06 2,528,367.70 0.22 0.04 corporate volunteering 452,485.56 0.03 0.00 361,551.15 0.03 0.01restoration of cultural heritage 245,763.35 0.02 0.00 158,000.00 0.01 0.00institutional support 569,418.87 0.04 0.01 401,950.48 0.04 0.01total contribution to the society 17,553,050.26 1.22 0.18 11,835,502.53 1.03 0.18taxes (excluding social security contributions) 4,666,532,291.85 323.23 48.98 2,801,030,111.71 244.15 43.49total external indicators 4,684,085,342.11 324.44 435.92 2,812,865,614.24 245.18 43.67environmental indicators Amount (in Pesos) % of GP % of nOi Amount (in Pesos) % of GP % of nOitotal investments in the environment 2,327,019.91 0.16 0.02 1,725,419.69 0.15 0.03indicators Regarding Staff number of employees at the end of the Fiscal year 5,374 5,487number of admissions during the Fiscal year 311 174turnover ratio (%) 6.84 5.42number of employees of more than 45 years 1,135 1,232number of Women employees 2,731 2,794percentage of managerial positions Filled by Women 25.00 21.13Relevant information Regarding cSR total Work-related accidents 77 78social and/or environmental projects were defined by(areas involved in the definition) sustainability division csr divisionthe standards regarding health and safety in the Workplace board of directors board of directorswere defined by (areas involved in the definition) and managers and managersas regards union-related issuesand collective bargaining, the bank… Follows the Guidelines of the ilo Follows the Guidelines of the ilodays away from Work due to strikes 0 0number of union representatives 133 112When choosing suppliers, the same standards regarding ethical,environmental and social responsibility as the bank’s: are required are requiredin the case of employees involved in provides support provides supportvoluntary activities, the bank… and encouragement and encouragementTotal Added value (Figures Stated in Thousands of Pesos)67 total added value 10,933,002.10 7,441,515.17 value obtained by shareholders reinvested in the company - - net added value 10,933,002.10 7,441,515.17 valor agregado distribuido - Government (taxes 3,070,563.94 1,878,187.89 - shareholders’ dividends - - - reinvestment of income68 4,939,956.51 3,174,664.83 - employees69 2,922,484.65 2,388,662.20

pRiMARy pERFORMANCE iNdiCATORS

66. these refer to voluntary contributions made by banco Galicia. With regard to “edu-cation”, since 2011 banco Galicia includes only the amount for the sets of school supplies effectively delivered by the bank to its employees as of december 31 of the reported year.67. e2 the total added value represents, in monetary terms, the wealth created by the bank which is distributed among the different stakeholders. thus, employees receive part of the added value through the compensation they are paid, social security contributions and benefits granted; the state receives part of it through taxes, assessments and rates received;

and shareholders through the distribution of profits. the bank reinvests part of the added value it created, allocating it to maintain and/or increase the ability to create wealth and investing in the community.68. it includes the reinvestment of income and fiscal year gains and losses net of cash dividends.69. it includes administrative services hired.


G4-9, G4-11, G4-22, G4-ec1, G4-ec3, G4-LA12, G4-HR1, G4-FS6

GRI CONTENT INDEX


G4-32

this sustainability report was prepared pursuant to the “in accordance” comprehensive option requirements established by G4 Guidelines of the Global reporting initiative, assured by pWc argentina. Furthermore, Gri performed an assurance on the content index of Gri G4 Guidelines based on G4-32 General standard disclosure through its service “the Gri content index service” (reference 70). in addition, it submits the 2014 communication on progress (cop) in compliance with the ten principles of the united nations Global compact.

below we disclose a summary Gri content index, a complete version of which may be found on galiciasustentable.com/is2014.

70. Gri does not assure these indicators’ content but their proper inclusion into the Gri content index service and into this sustainability report.

Generalstandard disclosures

externalassuranceomissionspage

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1010-11, 22-23, icbuenos aires, argentinabanco Galicia does not carry out significant activities abroad.1010, 11, 22-2310, 11, 69

34, ic

6999.26% of employees are covered by collective bargaining agreements.56 see pages 18 and 19 of banco Galicia’s 2013 sustainability report.no significant changes were made.

13, 6047, 49, 51, ic29, ic

10the bank's 2014 sustainability report, as well as its annual report and Financial statements, include banco Galicia and its affiliated companies.7-9, ic

9, icic the materiality analysis covers banco galicia and its affiliated companies.

ic

in every case where the restatement of information affected the inter-annual comparison in the tables presented, the modification thereof is included in a footnote.no significant changes were made.

9, ic9, ic8-9, 30-31, 35, ic

9, 18-19, 31, 35, 60, ic

year 2014year 2013annual7670-75, ic

Content Index of the GRI G4 Guidelines

Strategy and AnalysisG4-1 provide a statement from the most senior decision-maker of the organization (such as ceo, chair or equivalent senior position) about the relevance of sustainability to the organization and the organization’s strategy for addressing sustainability.G4-2 provide a description of key impacts, risks and opportunities.

Organization ProfileG4-3 report the name of the organization.G4-4 report the primary brands, products, and services.G4-5 report the location of the organization’s headquarters.G4-6 report the number of countries where the organization operates, and names of countries where either the organization has significant operations or that are specifically relevant to the sustainability topics covered in the report.G4-7 report the nature of ownership and legal form.G4-8 report the markets served (including geographic breakdown, sectors served, and types of customers and beneficiaries).G4-9 report the scale of the organization, including: total number of employees, total number of operations, net sales (for private sector organizations) or net revenues (for public sector organizations), total capitalization broken down in terms of debt and equity (for private sector organizations), quantity of products or services provided.G4-10 report the total number of employees by employment contract and gender. report the total number of permanent employees by employment type and gender. report the total workforce by employees and supervised workers and by gender. report the total workforce by region and gender. report whether a substantial portion of the organization’s work is performed by workers who are legally recognized as self-employed, or by individuals other than employees or supervised workers, including employees and supervised employees of contractors. report any significant variations in employment numbers (such as seasonal variations in employment in the tourism or agricultural industries).G4-11 report the percentage of total employees covered by collective bargaining agreements.

G4-12 describe the organization’s supply chain.

G4-13 report any significant changes during the reporting period regarding the organization’s size, structure, ownership, or its supply chain.G4-14 report whether and how the precautionary approach or principle is addressed by the organization. G4-15 list externally developed economic, environmental and social charters, principles, or other initiatives to which the organization subscribes or which it endorses.G4-16 list memberships of associations (such as industry associations) and national or international advocacy organizations in which the organization: holds a position on the governance body; participates in projects or committees; provides substantive funding beyond routine membership dues; views membership as strategic. identified Material Aspects and BoundariesG4-17 list all entities included in the organization’s consolidated financial statements or equivalent documents. report whether any entity included in the organization’s consolidated financial statements or equivalent documents is not covered by the report.

G4-18 explain the process for defining the report content and the aspect boundaries. explain how the organization has implemented the reporting principles for defining report content.G4-19 list all the material aspects identified in the process for defining report content.G4-20 For each material aspect, report the aspect boundary within the organization, as follows: report whether the aspect is material within the organization. if the aspect is not material for all entities within the organization (as described in G4-17), select one of the following two approaches and report either: the list of entities or groups of entities included in G4-17 for which the aspect is not material or the list of entities or groups of entities included in G4-17 for which the aspects is material. report any specific limitation regarding the aspect boundary within the organization.G4-21 For each material aspect, report the aspect boundary, as follows: report whether the aspect is material outside of the organization. if the aspect is material outside of the organization, identify the entities, groups of entities or elements for which the aspect is material. in addition, describe the geographical location where the aspect is material for the entities identified. report any specific limitation regarding the aspect boundary outside the organization.G4-22 report the effect of any restatements of information provided in previous reports, and the reasons for such restatements.

G4-23 report significant changes from previous reporting periods in the scope and aspect boundaries. Stakeholder engagementG4-24 provide a list of stakeholder groups engaged by the organization.G4-25 report the basis for identification and selection of stakeholders with whom to engage.G4-26 report the organization’s approach to stakeholder engagement, including frequency of engagement by type and by stakeholder group, and an indication of whether any of the engagement was undertaken specifically as part of the report preparation process.G4-27 report key topics and concerns that have been raised through stakeholder engagement, and how the organization has responded to those key topics and concerns, including through its reporting. report the stakeholder groups that raised each of the key topics and concerns.

Report ProfileG4-28 reporting period (such as fiscal or calendar year).G4-29 date of most recent previous report (if any).G4-30 reporting cycle (such as annual, biennial).G4-31 provide the contact point for questions regarding the report or its contents.G4-32 report the ‘in accordance’ option the organization has chosen. report the Gri content index for the chosen option. report the reference to the external


Indicators that respond to the gloval pact principles of the

united nations

Generalstandard disclosures page

externalassuranceomissions

G4-32

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this sustainability report was prepared pursuant to the “in accordance” comprehensive option requirements established by G4 Guidelines of the Global reporting initiative (Gri) and the Financial services sector supplement.75, ic

12, ic

12, ic, cGs

12-13, 16, ic

8, 12, ic

12, ic

12, ic

12, cGs

12, ic, cGs

12-13, ic, cGs

8, 12-13, ic, cGs

12-13, ic, cGsduring 2014, no changes to the bank’s corporate governance composition were made as a consequence of the evaluation of its members.8, 12-13, icthe bank’s governance knows and followsrisk management measurements preparedby the operational risk area.13, ic

8, 12daniel antonio llambías, chief executive officer of the bank.12, icbanco Galicia considers “critical concerns” are those statements by stakeholdersthat can have an impact on thebank’s business management or anykey audience.8-9, ic

12, ic

12, ic

12, ic

due to the domestic environment where banco Galicia’s activities are carried out,this information is deemed confidentialin order to safeguard the personal safety of the bank's employees and senior officers.due to the domestic environment where banco Galicia’s activities are carried out, this information is deemed confidential in order to safeguard the personal safety of the bank's employees and senior officers.

10, ic, co10, ic

10, ic

assurance report, if the report has been externally assured. Gri recommends the use of external assurance but it is not a requirement to be ‘in accordance’ with the Guidelines.

G4-33 report the organization’s policy and current practice with regard to seeking external assurance for the report. if not included in the assurance report accompanying the sustainability report, report the scope and basis of any external assurance provided. report the relationship between the organization and the assurance providers. report whether the highest governance body or senior executives are involved in seeking assurance for the organization’s sustainability report. GovernanceG4-34 report the governance structure of the organization, including committees of the highest governance body. identify any committees responsible for decision-making on economic, environmental and social impacts.G4-35 report the process for delegating authority for economic, environmental and social topics from the highest governance body to senior executives and other employees.G4-36 report whether the organization has appointed an executive-level position or positions with responsibility for economic, environmental and social topics, and whether post holders report directly to the highest governance body.G4-37 report processes for consultation between stakeholders and the highest governance body on economic, environmental and social topics. if consultation is delegated, describe to whom and any feedback processes to the highest governance body.G4-38 report the composition of the highest governance body and its committees by: executive or non-executive; independence; tenure on the governance body; number of each individual’s other significant positions and commitments, and the nature of the commitments; gender; membership of under-represented social groups; competences relating to economic, environmental and social impacts; stakeholder representation.G4-39 report whether the chair of the highest governance body is also an executive officer (and if so, his or her function within the organization’s management and the reasons for this arrangement).G4-40 report the nomination and selection processes for the highest governance body and its committees, and the criteria used for nominating and selecting highest governance body members, including: whether and how diversity is considered; whether and how independence is considered; whether and how expertise and experience relating to economic, environmental and social topics are considered; whether and how stakeholders (including shareholders) are involved.G4-41 report processes for the highest governance body to ensure conflicts of interest are avoided and managed. report whether conflicts of interest are disclosed to stakeholders, including, as a minimum: cross-board membership; cross-shareholding with suppliers and other stakeholders; existence of controlling shareholder; related party disclosures.G4-42 report the highest governance body’s and senior executives’ roles in the development, approval, and updating of the organization’s purpose, value or mission statements, strategies, policies, and goals related to economic, environmental and social impacts.G4-43 report the measures taken to develop and enhance the highest governance body’s collective knowledge of economic, environmental and social topics.G4-44 report the processes for evaluation of the highest governance body’s performance with respect to governance of economic, environmental and social topics. report whether such evaluation is independent or not, and its frequency. report whether such evaluation is a self-assessment. report actions taken in response to evaluation of the highest governance body’s performance with respect to governance of economic, environmental and social topics, including, as a minimum, changes in membership and organizational practice.

G4-45 report the highest governance body’s role in the identification and management of economic, environmental and social impacts, risks, and opportunities. include the highest governance body’s role in the implementation of due diligence processes. report whether stakeholder consultation is used to support the highest governance body’s identification and management of economic, environmental and social impacts, risks, and opportunities.

G4-46 report the highest governance body’s role in reviewing the effectiveness of the organization’s risk management processes for economic, environmental and social topics.G4-47 report the frequency of the highest governance body’s review of economic, environmental and social impacts, risks, and opportunities.G4-48 report the highest committee or position that formally reviews and approves the organization’s sustainability report and ensures that all material aspects are covered.G4-49 report the process for communicating critical concerns to the highest governance body.

G4-50 report the nature and total number of critical concerns that were communicated to the highest governance body and the mechanism(s) used to address and resolve them.G4-51 report the remuneration policies for the highest governance body and senior executives for the below types of remuneration: fixed pay and variable pay (performance-based pay; equity-based pay; deferred or vested shares); sign-on bonuses or recruitment incentive payments; termination payments; clawbacks; retirement benefits, including the difference between benefit schemes and contribution rates for the highest governance body, senior executives, and all other employees. report how performance criteria in the remuneration policy relate to the highest governance body’s and senior executives’ economic, environmental and social objectives.G4-52 report the process for determining remuneration. report whether remuneration consultants are involved in determining remuneration and whether they are independent of management. report any other relationships which the remuneration consultants have with the organization.G4-53 report how stakeholders’ views are sought and taken into account regarding remuneration, including the results of votes on remuneration policies and proposals, if applicable.G4-54 report the ratio of the annual total compensation for the organization’s highest-paid individual in each country of significant operations to the median annual total compensation for all employees (excluding the highest-paid individual) in the same country.

G4-55 report the ratio of percentage increase in annual total compensation for the organization’s highest-paid individual in each country of significant operations to the median percentage increase in annual total compensation for all employees (excluding the highest-paid individual) in the same country.

ethics and integrityG4-56 describe the organization’s values, principles, standards and norms of behavior such as codes of conduct and codes of ethics.G4-57 report the internal and external mechanisms for seeking advice on ethical and lawful behavior, and matters related to organizational integrity, such as helplines or advice lines.G4-58 report the internal and external mechanisms for reporting concerns about unethical or unlawful behavior, and matters related to organizational integrity, such as escalation through line management, whistleblowing mechanisms or hotlines.


economic performance

marketpresence

consecuencias económicas indirectasprácticas de adquisición

materials

energy

Water

emissions

effluentsand Waste

gri g4 guidelines– specific standard Disclosures

this indicator is not applicable sinceit was not possible to get informationin the mid-term after havingperformed a survey of the bank’s external activities

G4-32

materialaspects

dmaand indicators page


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economíaG4-dma management approachG4-ec1 direct economic value Generated and distributedG4-ec2 economic implications and other risks and opportunities for the organization’s activities due to climate change

G4-ec3 coverage of the organization’s defined benefit plan obligations

G4-ec4 Financial assistance received from GovernmentG4-dma management approach

G4-ec5 ratios of standard entry level Wage by Gender compared to local minimum Wage at significant locations of operation

G4-ec6 porcentaje de altos directivos procedentes de la comunidad local en lugares donde se desarrollan operaciones significativas.G4-dma management approachG4-ec7 development and impact of infrastructure investments and services supported.G4-ec8 significant indirect economic impacts, including the extent of impacts.G4-dma management approach

G4-ec9 proportion of spending on local suppliers at significant locations of operation

enVironmenTalG4-dma management approachG4-en1 materials used by Weight or volume.G4-en2 percentage of materials used that are recycled input materials.

G4-dma management approachG4-en3 energy consumption within the organization.G4-en4 energy consumption outside of the organization.

G4-en5 energy intensityG4-en6 reduction of energy consumption.G4-en7 reductions in energy requirements of products and services.G4-dma management approachG4-en8 total Water Withdrawal by source.

G4-en9 fuentes de agua que han sido afectadas significativamente por la captación de agua.G4-en10 porcentaje y volumen total de agua reciclada y reutilizada.

G4-dma management approachG4-en15 direct Greenhouse Gas (GhG) emissions (scope 1).G4-en16 energy indirect Greenhouse Gas (GhG) emissions (scope 2).G4-en17 other indirect Greenhouse Gas (GhG) emissions (scope 3).G4-en18 Greenhouse Gas (GhG) emissions intensity.G4-en19 reduction of Greenhouse Gas (GhG) emissions.G4-en20 emissions of ozone-depleting substances (ods).G4-en21 nox, sox, and other significant air emissions.

G4-dma management approachG4-en22 total Water discharge, by quality and destination.

G4-en23 total Weight of Waste by type and disposal method.

G4-en24 total number and volume of significant accidental spills.

7-9, ic11,6963-64, ic, paat banco galicia there were no financial implications dueto climate change-related matters.41, 69in addition to the defined benefit plan established bylabor law, at banco Galicia there is no independent fundfor such purpose for our employees.no assistance was received from the argentine government.7-9, icgiven the current inflationary environment in argentina, we believe it is relevant to manage and communicate the salary levels and their relation with regard to the adjustable minimum living wage (smvm, as per its initials in spanish). in turn, since banco Galicia is a domestic bank, the value we give to the “domestic environment” is particularly relevant in our management.all the salaries paid to the bank’s employees are above the adjustable minimum living wage in argentina. the standard entry level wage is 162.48% higher than the adjustable minimum living wage.banco Galicia has an employment policy where local hiring ispreferred, provided that the requirements for the position are met.7-9, 44-45, 63-6444-51, ic27-29, 44, 46, 56, ic7-9, icat banco Galicia we value the impact on economic development we make by including sme and domestic suppliers. that is why we seek to make responsiblepurchases and we include sustainable enterprises yearafter year through our inclusive purchases.56banco Galicia has no selection policy based on hiring local suppliers, understanding as such those companies basedin provinces where branches are located. all of banco Galicia’s suppliers are national or international companies based in argentina.

7-9, 60, ic6262reusable envelopes contain a percentage of recycled paper.7-9, 60, 63, ic63, icic

63, 6563, ic63, 65, ic7-9, 60, ic63there are 4 branches that use a water collection by drillingsystem. their total aggregate estimated consumption is less than 180 m3 monthly. this does not have a significant impact.respuesta igual a la incluida para el indicador G4-en8.66banco Galicia has rainwater recycling initiatives at thelas palmas sustainable branch.7-9, 60, icic66, icicicicicthis indicator is not applicable to banco Galicia since, as a financial institution, it does not generate significant emissions of nox, sox and other emissions.7-9, 60, icall the buildings and branches are located in urban areasand the effluents generated are treated by the publicsanitation service, except for four branches that discharge water to absorption wells.62due to operational limitations with regard to scope, no measurements are carried out at branches, but waste management is conducted.no spills were reported.


productsand services

compliance

supplier environmental assessment

employment

labor/management relations

trainingand education

diversity and equal opportunity

equal remuneration for Women and mensupplier assessment for labor practices

labor practices Grievance mechanisms

investment

supplier human rights assessment

G4-32

materialaspects

dmaand indicators

externalassuranceomissionspage

no waste is imported or else exported.hazardous waste is transported locally, and it isreported as discharged hazardous waste(G4 en23).all of banco galicia’s offices and branches are located in urban areas, and our transactions do not have a significant impact on natural protected areas or unprotected areas with a high biodiversity value.7-9, 60, 64, ic63-64,66as an indirect action to mitigate the impacts of productsand services, banco Galicia seeks to transform its branchesin eco responsible branches.

7-9, 60, ic, pano fines were imposed on the bank.

7-9, 56, 60, ic, co56, co, pain 2014 we continued visiting suppliers in order to make a social and environmental assessment thereof. this year we made four visits, the results of which were satisfactory, and we expect to continue broadening the scope in 2015.the same response as that to G4-en32 indicator.

7-9, 36, 56, ic34, 36, ic

40-41, ic

ic

7-9, icnotice periods are pursuant to argentinelabor laws and correspond with the change levelof the person in relation to his/her new jobposition and location.7-9, 38-39, ic38, ic

10, 38-39, 64, icduring 2014, 26 of the bank's leaders were trained in human rights.39

7-10, 36, icthe respect for individuals and the fight against discrimination are an essential part of our human resources management practices. 12, 34, 69, ic

7-9, icthe bank does not distinguish between men’s and women’s salary.7-10, 56, co, ic, pathe same response as that to G4-en32 indicator.

the same response as that to G4-en32 indicator.

7-9, icic

7-9, ic45, 69the social investment made by banco Galicia, underthe framework of its three focal points of work withthe community, is closely related to human rights.10during 2014, 26 of the bank's leaders were trained in human rights.7-10, co, ic, pathe same response as that to G4-en32 indicator.

the same response as that to G4-en32 indicator.

G4-en25 Weight of transported, imported, exported, or treated Waste deemed hazardous under the terms of the basel convention annex i, ii, iii, and viii, and percentage of transported Waste shipped internationally

G4-en26 identity, size, protected status, and biodiversity value of Water bodies and related habitats significantly affected by the organization’s discharges of water and runoff

G4-dma management approachG4-en27 extent of impact mitigation of environmental impacts of products and services.

G4-en28 percentage of products sold and their packaging materials that are reclaimed by category.

G4-dma management approachG4-en29 monetary value of significant fines and total number of non-monetary sanctions for non-compliance with environmental laws and regulationsG4-dma management approachG4-en32 percentage of new suppliers that Were screened using environmental criteria.

G4-en33 significant actual and potential negative environmental impacts in the supply chain and actions taken

social labor PracTices anD DecenT worKG4-dma management approachG4-la1 number and rates of new employee hires and employee turnover by age Group, Gender and regionG4-la2 benefits provided to full-time employees that are not provided to temporary or part-time employees, by significant locations of operationG4-la3 return to work and retention rates after parental leave, by GenderG4-dma management approachG4-la4 minimum notice periods regarding operational changes, including Whether these are specified in collective agreements

G4-dma management approachG4-la9 average hours of training per year per employee by Gender, and by employee category G4-la10 programs for skills management and lifelong learning that support the continued employability of employees and assist them in managing career endings

G4-la11 percentage of employees receiving regular performance and career development reviews, by Gender and by employee categoryG4-dma management approach

G4-la12 composition of Governance bodies and breakdown of employees per employee category according to Gender, age Group, minority Group membership, and other indicators of diversity.G4-dma management approachG4-la13 ratio of basic salary of men to women, by employee category and significant locations of operation.G4-dma management approachG4-la14 percentage of new suppliers that Were screened using labor practices criteria.G4-la15 significant actual and potential negative impacts for labor practices in the supply chain and actions takenG4-dma management approachG4-la16 número de reclamaciones sobre prácticas laborales que se han presentado, abordado y resuelto mediante mecanismos formales de reclamación.

social HUman rigHTsG4-dma management approachG4-hr1 total number and percentage of significant investment agreements and contracts that include human rights clauses or that underwent human rights screening

G4-hr2 total hours of employee training on human rights policies or procedures concerning aspects of human rights that are relevant to operations, including the percentage of employees trainedG4-dma management approachG4-hr10 percentage of new suppliers that Were screened using human rights criteriaG4-hr11 significant actual and potential negative human rights impacts in the supply chain and actions taken

not applicable. due to the nature of the activities carried out, banco Galicia does not reclaim products or else packaging to be included again in the production cycle.

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References:cgs: code on corporate governance. cnv.gob.ar. section: transparency system – code on corporate governance – refer to the document sent by the companies – b - banco de galicia y buenos aires.pa: environmental policy. galiciasustentable.com. section: environment – our environmental policy.ic: supplementary report on galiciasustentable.com. section: sustainability reports – 2014 sustainability report.mb: banco galicia’s 2014 annual report and financial statements. galicia.com.ar. section: get to know us – corporate information – annual report and Financial statements.co: code of conduct for suppliers. galiciasustentable.com. section: suppliers – code of conduct.

G4-32

localcommunities

anti-corruption

customer health and safety

product and service labeling

customerprivacy

productportfolio

audit

activeownership

7-10, 44-45, ic 45, 47, 49, 51, ic

44-45, 63-64, icthere were no negative impacts on local communitiesdue to the carrying out of the bank’s activities.10, 2359% of the branches located in thecity of buenos aires and Greater buenos aires,and 41% in the provinces.25, 27, 48-49, ic7-10, ic 10, 12-13, icall business units are analyzed for risks relatedto corruption.10, 13, ic

during 2014 there were no cases related to incidentsof corruption regarding the bank’s transactions.

7-10, 25, ic10, 13, 25, ic

no incidents were reported.

7-10, 25, ic10, 12-13, 25, icall of the bank’s products, services and operations aregoverned by bcra regulations, the code on banking practices and the national securities commission.ic

31, ic 7-10, 25, ic no incidents were reported.

7-10, 22, ic 11, 22-23, 69, ic

26-29, 48, ic

63-64, 68, ic

7-9, 60, 63-64, ic, pa60

7-9, cGs63-64, 68, ic

63-64, ic the percentage of loans subject to social andenvironmental screening stands at about 26%of the total asset portfolio, according to theconsolidated balance sheet.banco Galicia has no formal voting policiesregarding environmental and social aspects for entitiesin which it has voting rights or acts as advisor.

social socieTYG4-dma management approachG4-so1 percentage of operations with implemented local community engagement, impact assessments, and development programsG4-so2 operations with significant actual and potential negative impacts on local communities.

G4-Fs13 access points in low-populated or economically disadvantaged areas, by type.

G4-Fs14 initiatives to improve access to Financial services for disadvantaged people.G4-dma management approachG4-so3 total number and percentage of operations assessed for risks related to corruption and the significant risks identified

G4-so4 communication and training on anti-corruption policies and proceduresG4-so5 confirmed incidents of corruption and actions taken.

social ProDUcT resPonsibiliTYG4-dma management approachG4-pr1 percentage of significant product and service categories for which health and safety impacts are assessed for improvement.G4-pr2 total number of incidents of non-compliance with regulations and voluntary codes concerning the health and safety impacts of products and services during their life cycle, by type of outcomes.G4-dma management approachG4-pr3 type of product and service information required by the organization’s procedures for product and service information and labeling, and percentage of significant product and service categories subject to such information requirements.

G4-pr4 total number of incidents of non-compliance with regulations and voluntary codes concerning product and service information and labeling, by type of outcomes.G4-pr5 results of surveys measuring customer satisfaction.G4-dma management approachG4-pr8 total number of substantiated complaints regarding breaches of customer privacy and losses of customer data.G4-dma management approachFs6 report the percentage of the portfolio for business lines by specific region, size, and by sector.Fs7 report the monetary value of products and services designed to deliver a specific social benefit for each business line broken down by purpose.Fs8 report the monetary value of products and services designed to deliver a specific environmental benefit for each business line by purpose.G4-dma management approachFs9 report coverage and frequency of audits to assess implementation of environmental and social policies and risk assessment procedures.G4-dma management approachFs10 report the percentage and number of companies held in the institution’s portfolio with which the reporting organization has interacted on environmental or social issues.Fs11 report the percentage of assets subject to positive and negative environmental or social screening.

Fs12 report voting policy(ies) applied to environmental or social issues for shares over which the reporting organization holds the right to vote or advises on voting.

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materialaspects

dmaand indicators page


EXTERNAL ASSuRANCE REpORT

Independent Assurance Report

To the Chairman and Directors of Banco de Galicia y Buenos Aires S.A. Tte. Gral. Juan D. Perón 430Autonomous City of Buenos Aires, Argentina

Introduction

We have been engaged by Banco de Galicia y Buenos Aires S.A.’s directors to perform a limited assurance work on certain information included in the “2014 Sustainability Report” (hereinafter the “Sustainability Report”) for the fiscal year ended December 31, 2014. The preparation of the Sustainability Report is the responsibility of the Company’s Board of Directors. Our responsibility is to issue an independent and limited assurance report on the Sustainability Report, with the scope described in detail herein.

Information Subject to Analysis

Our limited assurance work consisted in reviewing the following information included in the Sustainability Report:

Key indicators detailed in the Table of GRI Indicators, identified with the symbol √;The self-statement made by Banco de Galicia y Buenos Aires S.A. regarding compliance with the basic contents recommended by the Sustainability Reporting Guidelines of the “Global Reporting Initiative”, G4 version (hereinafter “GRI G4”).

Board of Directors’ Responsibilities

Banco de Galicia y Buenos Aires S.A.’s Board of Directors is responsible for:The contents of the Sustainability Report;Having set as reporting criterion the GRI G4 Guidelines and those included in the Sustainability Report;Assessing performance based on GRI G4 Guidelines;Designing, implementing and maintaining internal controls for the preparation of the information subject to analysis to be free from material misstatements, either due to fraud or error; andKeeping appropriate records to support the reporting process.

Responsibility of the Professional Involved

Our responsibility consists in expressing an independent conclusion, based on our limited assurance procedures, about whether there is any matter that has called our attention to indicate that the sustainability information, identified in the “Information Subject to Analysis” section, included in the Sustainability Report, has not been stated, in all material respects, in conformity with the reporting criteria.We conducted our work in accordance with Technical Resolution No. 35 of the Argentine Federation of Professional Councils in Economic Sciences (FACPCE) as regards the International Standards on Assurance Engagements 3000 (ISAE 3000) "Assurance Engagements Other Than an Audit or Review of Historical Financial Information". This standard requires that we plan and perform our work to obtain limited assurance on the sustainability information covered by our report.

•

•

••

••

•

•

•

•

•

•

Summary of the Work Performed

Our procedures include examining, based on selective tests, evidence related to the sustainability information covered by our report. It also includes assessing the significant estimates or judgments made by the Board of Directors to prepare that information. The procedures to obtain information were more limited than an audit and, accordingly, the assurance level is lesser than the one that would have been reached in an audit or reasonable assurance work.

Among other procedures, our work consisted in:

Evaluating the design of key processes and controls to monitor, record and report the information selected. Our work does not include testing the effectiveness of operating controls for the period under analysis;Performing tests, on selective bases, to verify the accuracy of the information submitted;Conducting interviews with management and senior managers to assess the application of GRI G4 Guidelines;Inspecting, on selective bases, the documentation to verify management’s and senior managers’ statements in our interviews;Reviewing the summary GRI table to consider management's assertion regarding the application of GRI G4 Guidelines.

We believe that the evidence we obtained is sufficient and adequate to provide us with a basis for our limited assurance conclusion.The non-financial information is subject to inherent limitations other than those of financial information, given the nature thereof and the methods used to determine, calculate, select samples or estimate values. The qualitative interpretations of importance, materiality and accuracy of data are subject to individual criteria and assumptions.We have not carried out any work on the information submitted for prior periods or in relation to future goals and projections. We have not performed any work beyond the agreed-upon scope and, therefore, our conclusion is limited solely to the sustainability information identified and reviewed.

Conclusion

Based on the work described in this report, nothing called our attention that made us think that the information subject to analysis, included in Banco de Galicia y Buenos Aires S.A.’s 2014 Sustainability Report for the fiscal year ended December 31, 2014, has not been prepared, in all material respects,in conformity with the GRI G4 Guidelines, or the records and files that were used as a basis for the preparation thereof.

Price Waterhouse & Co. Asesores de Empresas S.R.L., Bouchard 557, piso 8°, C1106ABG - Ciudad de Buenos AiresT: +(54.11) 4850.6000, F: +(54.11) 4850.6100, www.pwc.com/ar

Price Waterhouse & Co. Asesores de Empresas S.R.L. is a member firm of the PricewaterhouseCoopers International Limited (PwCIL) global network. Each of the firms is a separate legal entity that does not act as agent of PwCIL or of any other member firm of the network.


G4-32, G4-33

Autonomous City of Buenos Aires, April 8th, 2015.PRICE WATERHOUSE & CO.

ASESORES DE EMPRESAS S.R.L.

(Partner)C.P.C.E.C.A.B.A. T° 1 F° 18

Jorge C. BacherPublic Accountant (UBA)

C.P.C.E.C.A.B.A. T° 87 F° 233


your comments and suGGestions on the 2014 sustainability report help us to continue improvinG the accountability With reGard to our social and environmental activities.

For such purpose please Fill in a survey on Galiciasustentable.com/is2014. you may also e-mail us to [email protected], or by regular mail to

tte. gral. j. d. perón 430, 10° piso - c1038aai buenos aires - argentina

We Would like to thank the bank’s entire operatinG Groupthat is actively enGaGed in the preparation oF this report

This publication was prepared by Banco Galicia’s Sustainability Division.

Constanza Gorleri - Banco Galicia’s Sustainability Manager

Follow us at: @GaliciaRSC BancoGaliciaSustentable

G4-31

all copy rights reserved april 2015

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este informe está impreso en papel desarrollado con pulpa derivada de madera de bosques Fsc (Forest stewardship council), organismo internacional que certifica que la madera proviene de prácticas forestales social y ambientalmente responsables.

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