UPDATE 1-Argentine Banco Galicia returns to profit in Q1

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BUENOS AIRES, May 9 (Reuters) - Leading Argentine banking conglomerate Grupo Financiero Galicia (GFG.BA: Quote, Profile, Research) posted a net profit in the first quarter, reversing the loss it had a year ago, due to strong performance by its main unit.

However, the result still came in slightly below market expectations, according to a Reuters poll of six analysts that gave a median outlook of 40.0 million pesos with estimates ranging from 30 million to 45 million pesos.

In a statement to the Buenos Aires Stock Exchange, the finance group said its net profit in the first three months of the year was 36.2 million pesos ($11.4 million), compared with net loss of 18.1 million a year ago.

Banco Galicia (GAL.BA: Quote, Profile, Research), the group's main unit, posted a first-quarter profit of 38.7 million pesos, compared with a net loss of 36.2 million a year earlier, the company said.

"The quarterly result is mainly due to the profit derived from our stake in Banco Galicia," the group said.

It added that operating income had increased during the period due to "a heightened level of activity and changes to the structure of assets and liabilities."

Grupo Financiero Galicia holds a 93.6 percent stake in Banco Galicia. It also controls insurance company Sudamericana Holding. ($1 = 3.1875 pesos on March 31) (Reporting by Damian Wroclavsky, writing by Helen Popper; editing by Carol Bishopric)