6-K 1 tm2422472d1_6k.htm FORM 6-K

 

 

 

 

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C.  20549

 

 

 

FORM 6-K

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16 UNDER THE

SECURITIES EXCHANGE ACT OF 1934

 

August 22, 2024

 

 

 

Commission File Number: 001-32827

 

 

 

MACRO BANK INC.

(Translation of registrant’s name into English)

 

 

 

Avenida Eduardo Madero 1182

Ciudad Autónoma de Buenos Aires C1106 ACY

Tel: 54 11 5222 6500 

(Address of registrant’s principal executive offices)

 

 

 

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

 

  Form 20-F x Form 40-F ¨

 

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):

 

  Yes ¨ No x

 

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):

 

  Yes ¨ No x

 

 

 

 

 

 

 

 

 

 

BANCO MACRO  2Q24 EARNINGS RELEASE

 

Index  

 

01 Summary  
     
02 Disclaimer  
     
03 Results  
     
04 Financial Assets  
     
05 Public Sector Assets  
     
06 Funding  
     
07 Liquid Assets  
     
08 Solvency  
     
09 Asset Quality  
     
10 2Q24 Snapshot  
     
11 Relevant and Recent Events  
     
12 Regulatory Changes  
     
13 CER Exposure and Foreign Currency Position  

 

2

 

 

 

 

 

BANCO MACRO  2Q24 EARNINGS RELEASE

 

 

4

 

 

BANCO MACRO  2Q24 EARNINGS RELEASE

 

 

5

 

 

BANCO MACRO  2Q24 EARNINGS RELEASE

 

Summary .01

 

· THE BANK’S NET INCOME totaled Ps.93.1 billion in the six months ended June 30, 2024. This result was 55% or Ps.115.9 billion lower 6M23. In 2Q24, the accumulated annualized return on average equity (“ROAE”) and the accumulated annualized return on average assets (“ROAA”) were 5.4% and 1.7%, respectively.

 

· In the six months ended June 30, 2024, OPERATING INCOME (before G&A and personnel expenses) totaled Ps.2.38 trillion, 36% or Ps.628.2 billion higher than in 6M23.

 

· In 2Q24, OPERATING INCOME (after G&A and personnel expenses) totaled Ps.99.1 billion, 93% or Ps.1.39 trillion lower than in 1Q24 and 85% or Ps.544 billion lower than the same period of last year.

 

· In 2Q24, BANCO MACRO’S TOTAL FINANCING increased 17% or Ps.504.1 billion quarter over quarter (“QoQ”) totaling Ps.3.47 trillion and increased 5% or Ps.154.5 billion year over year (“YoY”). In 2Q24 peso financing increased 7% while USD financing remained unchanged.

 

· In 2Q24, BANCO MACRO’S TOTAL DEPOSITS increased 13% or Ps.769.5 billion QoQ and decreased 5% or Ps.329.3 billion YoY, totaling Ps.6.74 trillion and representing 79% of the Bank’s total liabilities. Private sector deposits increased 11% or Ps.591.5 billion QoQ. In 2Q24, Peso deposits increased 17% while USD deposits decreased 6%.

 

· Banco Macro continued showing a strong solvency ratio, with an EXCESS CAPITAL of Ps.2.36 trillion, 35.7% Capital Adequacy Ratio – Basel III and 34 % Tier 1 Ratio. In addition, the Bank’s LIQUID ASSETS remained at an adequate level, reaching 98% of its total deposits in 2Q24.

 

· In 2Q24, the Bank’s NON-PERFORMING TO TOTAL FINANCING RATIO was 1.23% and the COVERAGE RATIO reached 181.4%.

 

· As of 2Q24, through its 515 branches and 9.175 employees Banco Macro serves 5.28 million retail customers (2.24 million digital customers) across 23 of the 24 Provinces in Argentina and over 151,900 corporate customers.

 

 

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BANCO MACRO  2Q24 EARNINGS RELEASE

 

Disclaimer .02

 

This press release includes forward-looking statements. We have based these forward-looking statements largely on our current beliefs, expectations and projections about future events and financial trends affecting our business. Many important factors could cause our actual results to differ substantially from those anticipated in our forward-looking statements, including, among other things: inflation; changes in interest rates and the cost of deposits; government regulation; adverse legal or regulatory disputes or proceedings; credit and other risks of lending, such as increases in defaults by borrowers; fluctuations and declines in the value of Argentine public debt; competition in banking and financial services; deterioration in regional and national business and economic conditions in Argentina; and fluctuations in the exchange rate of the peso.

 

The words “believe,” “may,” “will,” “aim,” “estimate,” “continue,” “anticipate,” “intend,” “expect” and similar words are intended to identify forward-looking statements. Forward-looking statements include information concerning our possible or assumed future results of operations, business strategies, financing plans, competitive position, industry environment, potential growth opportunities, the effects of future regulation and the effects of competition. Forward-looking statements speak only as of the date they were made, and we undertake no obligation to update publicly or to revise any forward-looking statements after we distribute this press release because of new information, future events or other factors. In light of the risks and uncertainties described above, the forward-looking events and circumstances discussed in this press release might not occur and are not guarantees of future performance.

 

This report is a summary analysis of Banco Macro's financial condition and results of operations as of and for the period indicated. For a correct interpretation, this report must be read in conjunction with all other material periodically filed with the Comisión Nacional de Valores (www.cnv.gob.ar), the Securities and Exchange Commission (www.sec.gov), Bolsas y mercados Argentinos (www.byma.com.ar) and the New York Stock Exchange (www.nyse.com). In addition, the Central Bank (www.bcra.gov.ar) may publish information related to Banco Macro as of a date subsequent to the last date for which the Bank has published information.

 

Readers of this report must note that this is a translation made from an original version written and expressed in Spanish. Consequently, any matters of interpretation should be referred to the original version in Spanish.

 

This Earnings Release has been prepared in accordance with the accounting framework established by the Central Bank of Argentina (“BCRA”), based on International Financial Reporting Standards (“I.F.R.S.”) and the resolutions adopted by the International Accouting Standards Board (“I.A.S.B”) and by the Federación Argentina de Consejos Profesionales de Ciencias Económicas (“F.A.C.P.E.”). As of January 2020 the Bank started reporting with the application of (i) Expected losses of IFRS 9 “Financial Instruments” and (ii) IAS 29 “Financial Reporting in Hyperinflationary Economies”. Data and figures shown in this Earnings Release may differ from the ones shown in the 20-F annual report. As of fiscal year 2021, the monetary result accrued by items of a monetary nature measured at fair value with changes in Other Comprehensive Income (OCI), is recorded in the Result form the Net Monetary Position integrating the Net Result of the period in accordance with Communication “A” 7211 of the Central Bank of Argentina. Previous quarters of 20223 have been restated in accordance with said Communication in order to make a comparison possible

 

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BANCO MACRO  2Q24 EARNINGS RELEASE

 

2Q24 Earnings Release Conference Call

Friday, August 23, 2024

 

Time:

12:00 p.m. Eastern Time

01:00 p.m. Buenos Aires Time

 

To participate, please dial:

 

Argentina Toll Free:

(011) 3984 5677

Participants Dial In (Toll Free):

+1 (844) 450 3847

Participants International Dial In:

+1 (412) 317 6370

 

Conference ID: Banco Macro

Webcast: click here

 

Webcast Replay: click here

Available from 08/23/2024 through 09/6/2024  

 

IR Contacts in Buenos Aires:

 

Jorge Scarinci

Chief Financial Officer

 

Nicolás A. Torres

Investor Relations  

 

Phone: (54 11) 5222 6682

E-mail: investorelations@macro.com.ar

 

Visit our website at:

www.macro.com.ar/relaciones-inversores  

 

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BANCO MACRO  2Q24 EARNINGS RELEASE

 

Results .03

 

Earnings per outstanding share were Ps.-365.51 in 2Q24, 172% lower than in 1Q24 and 243% lower than the result posted a year ago.

 

EARNINGS PER SHARE  MACRO Consolidated   Change 
In MILLION $ (Measuring Unit Current at EOP)  2Q23   3Q23   4Q23   1Q24   2Q24   QoQ   YoY 
Net income -Parent Company- (M $)   164,072    20,700    826,712    326,337    -233,243    -171%   -242%
Average # of shares outstanding (M)   639    639    639    639    639    0%   0%
Book value per avg. Outstanding share ($)   4,320    4,346    5,752    6,235    4,998    -20%   16%
Shares Outstanding (M)   639    639    639    639    639    0%   0%
Earnings per avg.  outstanding share ($)   256.42    32.39    1,293.76    510.70    -365.51    -172%   -243%
EOP FX (Pesos per USD)   256.6750    350.0083    808.4833    857.4167    911.7500    6%   255%
Book value per avg. issued ADS (USD)   168.31    124.17    71.15    72.72    54.82    -25%   -67%
Earnings per avg. outstanding ADS (USD)   9.99    0.93    16.00    5.96    -4.01    -167%   -140%

 

Banco Macro’s 2Q24 net income totaled a Ps.233.2 billion loss, Ps.559.6 billion lower than the previous quarter and Ps.397.3 billion lower YoY mainly due to the mark to market of Government Securities (financial assets at fair value through profit or loss) and lower fx gains. If Government Securities included in financial assets at fair value through profit or loss (namely TZX27 bonds) had been valued at amortized cost 2Q24 net income would have been Ps.605.5 billion higher.

 

As of 2Q24 the accumulated result represented an annualized ROAE and ROAA of 5.4% and 1.7% respectively.

 

Net operating income (before G&A and personnel expenses) was Ps.460.2 billion in 2Q24, 76% or Ps.1.46 trillion lower compared to 1Q24. On a yearly basis, Net Operating Income (before G&A and personnel expenses) decreased 53% or Ps.521.1 billion.

 

In 2Q24, Provision for loan losses totaled Ps.16.5 billion, 26% or Ps.5.9 billion lower than in 1Q24. On a yearly basis provision for loan losses decreased 20% or Ps.4 billion.

 

Operating income (after G&A and personnel expenses) was Ps.99.1 billion in 2Q24, 93% or Ps.1.4 trillion lower than in 1Q24 and 85% or Ps.544 billion lower than a year ago.

 

 

 

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BANCO MACRO  2Q24 EARNINGS RELEASE

 

INCOME STATEMENT  MACRO Consolidated   Change 
In MILLION $ (Measuring Unit Current at EOP)  2Q23   3Q23   4Q23   1Q24   2Q24   QoQ   YoY 
Net Interest Income   401,037    310,547    331,121    200,646    187,958    -6%   -53%
Net fee income   97,859    97,803    101,150    88,980    95,733    8%   -2%
Net Interest Income + Net Fee Income   498,896    408,350    432,271    289,626    283,691    -2%   -43%
Net Income from financial instruments at fair value through P&L   192,768    -100,192    1,609,378    1,508,685    121,199    -92%   -37%
Income from assets at amortized cost   0    378    237    25    -4    0%   0%
Differences in quoted prices of gold and foreign currency   281,716    656,076    328,532    95,555    25,654    -73%   -91%
Other operating income   28,426    31,092    43,253    49,446    46,182    -7%   62%
Provision for loan losses   20,507    13,404    32,687    22,359    16,477    -26%   -20%
Net Operating Income   981,299    982,300    2,380,984    1,920,978    460,245    -76%   -53%
Employee benefits   114,011    118,826    159,962    158,158    136,435    -14%   20%
Administrative expenses   63,875    63,593    113,310    80,693    67,083    -17%   5%
Depreciation and impairment of assets   22,960    22,747    36,233    28,792    27,000    -6%   18%
Other operating expenses   137,400    129,504    202,091    166,568    130,658    -22%   -5%
Operating Income   643,053    647,630    1,869,388    1,486,767    99,069    -93%   -85%
Result from associates & joint ventures   -705    -196    281,284    -254    -5,648    -    - 
Result from net monetary postion   -406,562    -595,013    -945,271    -1,054,000    -462,660    -56%   14%
Result before taxes from continuing operations   235,786    52,421    1,205,401    432,513    -369,239    -185%   -257%
Income tax   71,714    31,721    378,689    106,176    -135,996    -228%   -290%
Net income from continuing operations   164,072    20,700    826,712    326,337    -233,243    -171%   -242%
         -    -                     
Net Income of the period   164,072    20,700    826,712    326,337    -233,243    -171%   -242%
Net income of the period attributable to parent company   163,959    20,626    826,330    326,556    -233,712    0%   0%
Net income of the period attributable to minority interest   113    74    382    -219    469    0%   - 
Other Comprehensive Income   7,995    -3,904    71,943    -17,436    -47,955    -    - 
Foreign currency translation differences in financial statements conversion   -227    353    18,393    -16,674    -4,219    -    - 
Profits or losses from financial assets measured at fair value  through other comprehensive income (FVOCI)  (IFRS 9(4.1.2)(a)   8,222    -4,257    53,550    -762    -43,736    -    - 
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD   172,067    16,796    898,655    308,901    -281,198    -191%   -263%
Total Comprehensive Income attributable to parent Company   171,954    16,722    898,273    309,120    -281,667    -191%   -264%
Total Comprehensive Income attributable to non-controlling interests   113    74    382    -219    469    -314%   - 

 

The Bank’s 2Q24 net interest income totaled Ps.188 billion, 6% or Ps.12.7 billion lower than in 1Q24 and 53% or Ps.213.1 billion lower YoY. Interest income decreased 27% while interest expenses decreased 33%.

 

In 2Q24 interest income totaled Ps.619.7 billion, 27% or Ps.229.8 billion lower than in 1Q24 and 46% or Ps.521.4 billion lower than in 2Q23.

 

Income from interest on loans and other financing totaled Ps.410.2 billion, 26% or Ps142.7 billion lower compared with the previous quarter mainly due to a 25.9% percentage points decrease in the average lending rate which was partially offset by a 9% increase in the average volume of private sector loans. On a yearly basis Income from interest on loans decreased 10% or Ps.45.2 billion.

 

In 2Q24, income from government and private securities increased 40% or Ps.44.7 billion QoQ and decreased 74% or Ps.457.2billion compared with the same period of last year. This result is explained 99% by income from government and private securities valued at amortized cost and the remaining 1% is explained by income from government and private securities through other comprehensive income (Other government securities)

 

10

 

 

BANCO MACRO  2Q24 EARNINGS RELEASE

 

In 2Q24, income from Repos totaled Ps.48.7 billion, 73% or Ps.131.4 billion lower than the previous quarter and 29% or Ps.19.5 lower than a year ago.

 

In 2Q24 FX income totaled Ps.25.6 billion,73% or Ps.69.9 billion lower than the previous quarter and 91% or Ps.256.1 billion lower than a year ago. FX income gain was due to the 6.3% argentine peso depreciation against the US dollar and the Bank’s long dollar position during the quarter. It is important to notice that the Bank’s average long dollar position decreased 59% during the quarter.

 

FX INCOME  MACRO Consolidated   Variation 
In MILLION $ (Measuring Unit Current at EOP)  2Q23   1Q24   2Q24   QoQ   YoY 
(1) Differences in quoted prices of gold and foreign currency   281,716    95,555    25,654    -73%   -91%
Translation of FX assets and liabilities to Pesos   280,428    95,317    25,543    -73%   -91%
Income from foreign currency exchange   1,288    238    111    -53%   -91%
(2) Net Income from financial assets and liabilities at fair value through P&L   1,554    6,124    4,332    -29%   179%
Income from investment in derivative financing instruments   1,554    6,124    4,332    -29%   179%
(1) +(2) Total Result from Differences in quoted prices of gold and foreign currency   283,270    101,679    29,986    -71%   -89%

 

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BANCO MACRO  2Q24 EARNINGS RELEASE

 

INTEREST INCOME  MACRO Consolidated   Change 
In MILLION $ (Measuring Unit Current at EOP)  2Q23   3Q23   4Q23   1Q24   2Q24   QoQ   YoY 
Interest on Cash and due from Banks   2,794    3,501    3,484    3,717    3,337    -10%   19%
Interest from government securities   614,244    570,135    192,248    111,478    156,781    41%   -74%
Interest from private securities   334    229    1,475    1,244    614    -51%   84%
Interest on loans and other financing                                   
To the financial sector   918    1,566    2,926    1,218    986    -19%   7%
To the public non financial sector   12,001    11,050    9,561    1,976    823    -58%   -93%
Interest on overdrafts   59,332    75,345    136,531    84,667    61,555    -27%   4%
Interest on documents   51,674    77,733    121,676    67,479    43,152    -36%   -16%
Interest on mortgages loans   63,484    60,089    88,091    129,665    82,097    -37%   29%
Interest on pledged loans   4,167    4,700    5,257    3,726    2,964    -20%   -29%
Interest on personal loans   112,894    105,255    102,476    84,059    93,663    11%   -17%
Interest on credit cards loans   86,921    88,306    98,992    76,969    59,678    -22%   -31%
Interest on financial leases   448    1,002    4,212    4,161    2,593    -38%   479%
Interest on other loans   63,649    80,080    113,273    99,031    62,727    -37%   -1%
Interest on Repos   0                               
From the BCRA   68,188    103,514    150,149    180,033    48,523    -73%   -29%
Other financial institutions   0    46    1,165    77    182    -    - 
Total Interest income   1,141,048    1,182,551    1,031,516    849,500    619,675    -27%   -46%
Income from Interest on loans   442,569    492,510    670,508    549,757    408,429    -26%   -8%

 

The Bank’s 2Q24 interest expense totaled Ps.431.7 billion, decreasing 33% or Ps.217.1 billion compared to the previous quarter and 42% (Ps.308.3 billion) lower compared to 2Q23.

 

In 2Q24, interest on deposits represented 97% of the Bank’s total interest expense, decreasing 33% or Ps.208.8 billion QoQ, due to a 25.4 percentage points decrease in the average rate paid on deposits while the average volume of deposits from the private sector increased 16%. On a yearly basis, interest on deposits decreased 42% or Ps.304.5billion.

 

INTEREST EXPENSE  MACRO Consolidated   Change 
In MILLION $ (Measuring Unit Current at EOP)  2Q23   3Q23   4Q23   1Q24   2Q24   QoQ   YoY 
Deposits                                   
Interest on checking accounts   49,838    58,477    64,393    76,012    35,720    -53%   -28%
Interest on saving accounts   7,955    7,548    11,180    15,518    9,809    -37%   23%
Interest on time deposits   663,554    789,533    604,817    534,174    371,352    -30%   -44%
Interest on other financing from BCRA and financial inst.   819    652    1,394    1,887    691    -63%   -16%
Repos                                   
Other financial institutions   8,420    5,943    4,874    4,872    1,895    -61%   -77%
Interest on corporate bonds   73    78    2,937    5,618    3,741    -33%   5025%
Interest on subordinated bonds   6,020    6,505    6,789    7,155    5,946    -17%   -1%
Interest on other financial liabilities   3,332    3,268    4,011    3,618    2,563    -29%   -23%
Total financial expense   740,011    872,004    700,395    648,854    431,717    -33%   -42%
Expenses from interest on deposits   721,347    855,558    680,390    625,704    416,881    -33%   -42%

 

12

 

 

BANCO MACRO  2Q24 EARNINGS RELEASE

 

In 2Q24, the Bank’s net interest margin (including FX) was 19.9%, lower than the 26.2% posted in 1Q24 and the 38.3% posted in 2Q23.

 

ASSETS& LIABILITIES
PERFORMANCE (AR$)		  MACRO Consolidated 
In MILLION $  2Q23   1Q24   2Q24 
(Measuring Unit Current at EOP)  AVERAGE   REAL INT   NOMINAL   AVERAGE   REAL INT   NOMINAL   AVERAGE   REAL INT   NOMINAL 
Yields & rates in annualized nominal %  BALANCE   RATE   INT RATE   BALANCE   RATE   INT RATE   BALANCE   RATE   INT RATE 
Interest-earning assets                                             
Loans& Other Financing                                             
Public Sector   55,995    -4.8%   86.0%   8,642    -37.6%   92.0%   9,356    -22.5%   35.4%
Financial Sector   6,936    -22.2%   52.1%   15,787    -57.7%   30.2%   25,021    -34.0%   15.2%
Private Sector   2,822,235    -18.0%   60.3%   2,278,144    -37.3%   93.0%   2,350,008    -4.3%   67.1%
Other debt securities                                             
Central Bank Securities (Leliqs)   2,573,493    -5.7%   84.3%   0    0.0%   0.0%   0    0.0%   0.0%
Government& Private Securities   450,662    -16.3%   63.5%   501,614    -38.4%   89.4%   475,911    32.4%   131.3%
Repos   310,629    -3.8%   88.0%   710,507    -34.3%   102.0%   349,295    -10.6%   56.1%
Total interest-earning assets   6,219,950    -11.9%   72.1%   3,514,694    -36.9%   94.0%   3,209,591    0.1%   74.9%
                                              
Fin. Assets through P&L and equity inv.   37,203    303.5%   688.4%   2,327,112    5.3%   224.0%   4,589,260    -37.3%   9.6%
Other Non interest-earning assets   602,775              658,321              775,303           
Total Non interest-earning assets   639,978              2,985,433              5,364,563           
Total Average Assets   6,859,928              6,500,127              8,574,154           
                                              
Interest-bearing liabilities                                             
Deposits                                             
Public Sector   304,231    -11.9%   72.1%   285,759    -38.4%   89.6%   310,740    -13.3%   51.5%
Private Sector   4,376,089    -17.5%   61.1%   2,898,901    -42.1%   78.0%   3,572,247    -18.5%   42.4%
BCRA and other financial institutions   1,661    51.9%   196.8%   5,762    -25.7%   128.7%   852    138.8%   317.2%
Corporate bonds   0    0.0%   0.0%   9,567    -3.2%   197.8%   11,001    20.6%   110.7%
Repos   44,653    -10.1%   75.6%   23,264    -40.1%   84.2%   14,545    -12.8%   52.4%
Other financial liabilities   669749    -0.479    0.018    648492    -0.668    0.02    520130    -0.417    0.018 
Total int.-bearing liabilities   5,396,383    -20.9%   54.5%   3,871,745    -45.9%   66.5%   4,429,515    -20.7%   38.5%
                                              
Total non int.-bearing liabilities   1,419,805              1,409,976              1,669,223           
                                              
Total Average Liabilities   6,816,188              5,281,721              6,098,738           
                                              
Assets Performance        1,117,394              821,759              597,661      
Liabilities Performance        733,579              640,300              424,546      
Net Interest Income        383,815              181,459              173,115      
Total interest-earning assets        6,219,950              3,514,694              3,209,591      
Net Interest Margin (NIM)        24.8%             20.8%             21.7%     

 

13

 

 

BANCO MACRO  2Q24 EARNINGS RELEASE

 

ASSETS& LIABILITIES PERFORMANCE USD  MACRO Consolidated 
In MILLION $  2Q23   1Q24   2Q24 
(Measuring Unit Current at EOP)  AVERAGE   REAL INT   NOMINAL   AVERAGE   REAL INT   NOMINAL   AVERAGE   REAL INT   NOMINAL 
Yields & rates in annualized nominal %  BALANCE   RATE   INT RATE   BALANCE   RATE   INT RATE   BALANCE   RATE   INT RATE 
Interest-earning assets                                             
Cash and Deposits in Banks   419,690    0.7%   2.7%   472,843    -58.3%   3.2%   406,086    -25.8%   3.3%
Loans& Other Financing                                             
Financial Sector   1,077    4.2%   6.3%   302    -41.8%   43.9%   1,011    -16.7%   15.9%
Private Sector   209,245    32.5%   35.2%   448,955    -51.3%   20.4%   628,041    -20.5%   10.6%
Other debt securities                                             
Central Bank   237,320    0    0    23576    0    0    0    0    0 
Government& Private Securities   58,320    14.6%   16.9%   72,893    -56.7%   7.0%   58,883    -18.3%   13.7%
Total interest-earning assets   925,652    8.0%   10.2%   1,018,569    -55.1%   11.0%   1,094,021    -22.3%   8.1%
                                              
Fin. Assets through P&L and equity inv.   1,575,180    32.4%   35.1%   1,548,999    -36.3%   57.5%   135,085    4.5%   45.5%
Other Non interest-earning assets   1,501,457              1,966,248              1,660,387           
Total Non interest earning assets   3,076,637              3,515,247              1,795,472           
Total Average Assets   4,002,289              4,533,816              2,889,493           
                                              
Interest-bearing liabilities                                             
Deposits                                             
Public Sector   23,577    -1.9%   0.1%   7,993    -59.5%   0.1%   9,099    -27.7%   0.6%
Private Sector   489,900    -2.0%   0.0%   845,152    -59.6%   0.0%   770,111    -28.1%   0.1%
BCRA and other financial institutions   16,668    4.5%   6.6%   18,953    -56.2%   8.4%   22,877    -24.3%   5.4%
Issued corporate bonds   13,487    0.2%   2.2%   74,614    -57.6%   4.9%   53,570    -24.3%   5.4%
Subordinated bonds   372,932    4.4%   6.5%   452,525    -57.0%   6.4%   376,117    -23.6%   6.4%
Total int.-bearing liabilities   916,564    0.8%   2.8%   1,399,237    -58.6%   2.5%   1,231,774    -26.5%   2.3%
                                              
Total non int.-bearing liabilities   480,981              852,596              711,000           
                                              
Total Average liabilities   1,397,545              2,251,833              1,942,774           
                                              
Assets Performance        23,654              27,742              22,014      
Liabilities Performance        6,432              8,554              7,171      
Net Interest Income        17,222              19,188              14,843      
Total interest-earning assets        925,652              1,018,569              1,094,021      
Net Interest Margin (NIM)        7.5%             7.6%             5.5%     

 

In 2Q24 Banco Macro’s net fee income totaled Ps.95.7 billion, 8% or Ps.6.8 billion higher than in 1Q24 and was 2% or Ps.2.1 billion lower than the same period of last year.

 

In the quarter, fee income totaled Ps.112.1 billion, 11% or Ps.11.2 billion higher than in 1Q24. In the quarter fees charged on deposit accounts increased 14% or Ps.5 billion, credit related fees increased 57% or Ps.2.6 billion, ATM transactions fees increased 34% or Ps.2.1 billion and insurance fees increased 31% or Ps.1.3 billion. On a yearly basis, fee income increased 3% or Ps.3.7 billion.

 

In the quarter, total fee expense increased 37% or Ps4.5 billion, mainly due to higher ATM networks fees. On a yearly basis, fee expenses increased 58% or Ps.5.8 billion.

 

14

 

 

BANCO MACRO  2Q24 EARNINGS RELEASE

 

NET FEE INCOME  MACRO Consolidated   Change 
In MILLION $ (Measuring Unit Current at EOP)  2Q23   3Q23   4Q23   1Q24   2Q24   QoQ   YoY 
Fees charged on deposit accounts   40,392    39,115    40,520    35,367    40,409    14%   0%
Credit card fees   22,804    21,806    23,435    19,452    19,489    0%   -15%
Corporate services fees   15,841    16,618    16,436    16,388    14,975    -9%   -5%
Debit card fees   4,629    6,987    7,864    7,100    7,174    1%   55%
ATM transaction fees   6,530    6,376    6,058    6,069    8,153    34%   25%
Insurance fees   5,630    5,240    5,061    4,303    5,652    31%   0%
Credit related fees   3,124    2,640    3,973    4,485    7,047    57%   126%
Financial agent fees (provinces)   6,180    5,902    5,402    4,119    5,137    25%   -17%
Mutual funds & securities fees   3,063    3,711    5,037    3,481    3,931    13%   28%
AFIP & Collection services   218    209    185    148    166    12%   -24%
ANSES fees   54    56    39    18    14    -22%   -74%
Total fee income   108,465    108,660    114,010    100,930    112,147    11%   3%
                                    
Total fee expense   10,606    10,857    12,860    11,950    16,414    37%   55%
                                    
Net fee income   97,859    97,803    101,150    88,980    95,733    8%   -2%

 

In 2Q24 Net Income from financial assets and liabilities at fair value through profit or loss totaled a Ps.121.2 billion gain, decreasing 92% or Ps.1.39 billion in the quarter. This gain was mainly due to the negative mark to market of some government securities (CER inflation adjusted bonds, and dual bonds) (Ps.1.41 trillion)

 

On a yearly basis Net Income from financial assets and liabilities at fair value through profit or loss decreased 37% or Ps.71.6 billion.

 

NET INCOME FROM FINANCIAL ASSETS AND LIABILITIES
AT FAIR VALUE THROUGH PROFIT OR LOSS		  MACRO Consolidated   Change 
In MILLION $ (Measuring Unit Current at EOP)  2Q23   3Q23   4Q23   1Q24   2Q24   QoQ   YoY 
Profit or loss from government securities   163,259    -167,456    1,501,449    1,516,708    106,885    -93%   -35%
Profit or loss from private securities   29,719    44,157    64,952    7,801    8,769    12%   -70%
Profit or loss from investment in derivative financing instruments   1,554    2,278    27,701    6,124    4,332    -29%   179%
Profit or loss from other financial assets   562    -2,885    4,397    3,753    1,595    -58%   184%
Profit or loss from investment in equity instruments   -141    4,936    1,241    516    2,116    310%   -1601%
Profit or loss from the sale of financial assets at fair value   6,843    19,974    11,542    -17,197    1,191    -    - 
Income from financial assets at fair value through profit or loss   201,796    -98,996    1,611,282    1,517,705    124,888    -92%   -38%
                                    
Profit or loss from derivative financing instruments   -9,028    -1,196    -1,904    -9,020    -3,689    -    - 
Income from financial liabilities at fair value through profit or loss   -9,028    -1,196    -1,904    -9,020    -3,689    -    - 
                                    
NET INCOME FROM FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS   192,768    -100,192    1,609,378    1,508,685    121,199    -92%   -37%

 

15

 

 

BANCO MACRO  2Q24 EARNINGS RELEASE

 

In the quarter, Other Operating Income totaled Ps.46.2 billion, 7% or Ps.3.3 billion lower than in 1Q24 (Other adjustments and interest from other receivables decreased Ps.5.8 billion while income from initial recognition of financial assets and liabilities decreased 129% or Ps.7.9 billion. Others increased 84% or Ps.5.6 billion while other service related fees increased 25% or Ps.3.5 billion. On a yearly basis, Other Operating Income increased 62% or Ps.17.8 billion.

 

OTHER OPERATING INCOME  MACRO Consolidated   Change 
In MILLION $ (Measuring Unit Current at EOP)  2Q23   3Q23   4Q23   1Q24   2Q24   QoQ   YoY 
Credit and debit cards   3,473    4,326    5,489    4,533    5,422    20%   56%
Lease of safe deposit boxes   3,022    2,890    3,326    3,089    3,573    16%   18%
Other service related fees   9,016    11,449    13,450    13,782    17,236    25%   91%
Other adjustments and interest from other receivables   7,158    8,145    10,258    15,239    9,436    -38%   32%
Initial recognition of loans   -    -    -    6,121    -1,796    -    - 
Sale of property, plant and equipment   213    -6    63    2    45    2150%   -79%
Others   5,544    4,288    10,667    6,680    12,266    84%   121%
Other Operating Income   28,426    31,092    43,253    49,446    46,182    -7%   62%

 

In 2Q24 Banco Macro’s administrative expenses plus employee benefits totaled Ps.203.5 billion, 15% or Ps.35.3 billion lower than the previous quarter, due to lower employee benefits (-14%) and lower (-17%) administrative expenses. On a yearly basis, administrative expenses plus employee benefits increased 14% or Ps.25.6 billion.

 

Employee benefits decreased 14% or Ps.21.7 billion QoQ, remunerations decreased 14% or Ps.15.3 billion while Compensation and bonuses decreased 20% or Ps.3.9 billion. On a yearly basis, Employee benefits increased 20% or Ps.22.4 billion.

 

In 2Q24, administrative expenses decreased 17% or Ps.13.6 billion, due to lower Directors and auditors fees(-163%) which were partially offset by higher taxes (+34%). On a yearly basis administrative expenses increased 5% or Ps.3.2 billion.

 

In 2Q24, the efficiency ratio reached 55.9%, deteriorating significantly from the 14.6% posted in 1Q24 and the 21.7% posted a year ago. In 2Q24 expenses (employee benefits + G&A expenses + depreciation and impairment of assets) decreased 14%, while income (net interest income + net fee income + differences in quoted prices of gold and foreign currency + other operating income + net income from financial assets at fair value through profit or loss – (Turnover Tax + Insurance on deposits)) decreased 77% compared to 1Q24.

 

16

 

 

BANCO MACRO  2Q24 EARNINGS RELEASE

 

PERSONNEL& ADMINISTRATIVE EXPENSES  MACRO Consolidated   Change 
In MILLION $ (Measuring Unit Current at EOP)  2Q23   3Q23   4Q23   1Q24   2Q24   QoQ   YoY 
Employee benefits   114,011    118,826    159,962    158,158    136,435    -14%   20%
Remunerations   78,134    82,216    106,541    108,496    93,200    -14%   19%
Social Security Contributions   18,861    20,395    27,868    25,982    23,311    -10%   24%
Compensation and bonuses   13,175    12,306    21,417    19,831    15,962    -20%   21%
Employee services   3,841    3,909    4,136    3,849    3,962    3%   3%
Administrative Expenses   63,875    63,593    113,310    80,693    67,083    -17%   5%
Taxes   9,892    13,273    16,172    13,976    18,685    34%   89%
Maintenance, conservation fees   8,904    8,902    12,446    11,469    11,198    -2%   26%
Directors& statutory auditors fees   7,232    3,647    35,363    14,270    -8,921    -    - 
Security services   5,115    5,387    5,765    4,758    6,022    27%   18%
Electricity& Communications   4,737    4,651    4,401    6,054    6,399    6%   35%
Other professional fees   6,404    6,935    10,652    6,718    7,734    15%   21%
Rental agreements   270    190    176    513    227    -56%   -16%
Advertising& publicity   3,571    5,109    5,833    3,300    4,238    28%   19%
Personnel allowances   1,171    1,253    1,558    896    1,318    47%   13%
Stationary& Office Supplies   419    440    583    429    432    1%   3%
Insurance   549    558    565    399    910    128%   66%
Hired administrative services   1,658    1,096    1,425    5,269    6,540    24%   294%
Other   13,953    12,152    18,371    12,642    12,301    -3%   -12%
Total Administrative Expenses   177,886    182,419    273,272    238,851    203,518    -15%   14%
                                    
Total Employees   7,797    7,765    9,192    9,166    9,175           
Branches   462    461    519    517    515           
Efficiency ratio   21.7%   22.4%   13.5%   14.6%   55.9%          
                                    
Accumulated efficiency ratio   23.4%   23.0%   18.6%   14.7%   22.2%          

 

In 2Q24, Other Operating Expenses totaled Ps.130.7 billion, decreasing 22% or Ps.35.9 billion QoQ, due to lower turnover tax (44% or Ps.48.4billion), while Others increased 27% or Ps.13.1 billion. On a yearly basis, Other Operating Expenses decreased 5% or Ps.6.7 billion.

 

OTHER OPERATING EXPENSES  MACRO Consolidated   Change 
In MILLION $ (Measuring Unit Current at EOP)  2Q23   3Q23   4Q23   1Q24   2Q24   QoQ   YoY 
Turnover Tax   75,633    75,814    126,033    110,029    61,647    -44%   -18%
Other provision charges   3,588    2,427    6,803.00    4,411    3,201    -27%   -11%
Deposit Guarantee Fund Contributions   2,593    2,652    2,228    2,000    2,348    17%   -9%
Donations   734    252    334    628    540    -14%   -26%
Insurance claims   1,059    1,067    1,438    1,338    1,589    19%   50%
Initial loan recognition   13,441    1,529    10,704    0    0    -100%   100%
Late charges and charges payable to the Central Bank   1    1    19    6    6    0%   500%
Others   40,351    45,762    54,532    48,156    61,327    27%   52%
Other Operating Expenses   137,400    129,504    202,091    166,568    130,658    -22%   -5%

 

17

 

 

BANCO MACRO  2Q24 EARNINGS RELEASE

 

In 2Q24, the result from the net monetary position totaled a Ps.462.7 billion loss, 56% or Ps.591.3 billion lower than the loss posted in 1Q24 and 14% or Ps.56.1 billion higher than the loss posted one year ago. This result is a consequence of lower inflation during the quarter (inflation tumbled to 18.6% from 51.6% in 1Q24) while the net monetary position remained unchanged.

 

OPERATING RESULT  MACRO consolidated   Change 
In MILLION $ (Measuring Unit Current at EOP)  2Q23   3Q23   4Q23   1Q24   2Q24   QoQ   YoY 
Operating Result (exc. Loss from net monetary position)   643,053    647,630    1,869,388    1,486,767    99,069    -93%   -85%
Result from net monetary position (i.e. inflation adjustment)   -406,562    -595,013    -945,271    -1,054,000    -462,660    -56%   14%
Operating Result (Inc. Loss from net monetary position)   236,491    52,617    924,117    432,767    -363,591    -    - 

 

In 2Q24, given Banco Macro's negative net income for the quarter, no Income tax charge was recorded.

 

For more information, please see note 21 “Income Tax” of our Financial Statements.

 

18

 

 

BANCO MACRO  2Q24 EARNINGS RELEASE

 

Financial Assets .04

 

Loans and other financing

 

The volume of financing (including loans, financial trust and leasing portfolio) totaled Ps.3.47 triillion, increasing 17% or Ps.504.1 billion QoQ and 5% or Ps.154.5 billion YoY. In 2Q24 Private sector loans increased 15% or Ps.449.4 billion. On a yearly basis Private sector loans increased 5% or Ps.150 billion.

 

Within commercial loans, Documents stand out with a 7% or Ps.43.6 billion increase, while Others increased 27% or Ps.158.3 billion.

 

Within consumer lending, personal loans increased 29% or Ps.111.9 billion while credit card loans increased 11% or Ps.77.8 billion.

 

Within private sector financing, peso financing increased 20% or Ps.463.8 billion, while US dollar financing increased USD 2 million.

 

As of 2Q24, Banco Macro’s market share over private sector loans was 9.1%.

 

LOANS AND OTHER FINANCING  MACRO Consilidated   Change 
In MILLION $ (Measuring Unit Current at EOP)  2Q23   3Q23   4Q23   1Q24   2Q24   QoQ   YoY 
Public Sector   68,971    8,710    8,479    3,341    45,067    1249%   -35%
Finacial Sector   7,833    40,063    17,914    23,283    36,249    56%   363%
Financial Sector   7,903    40,127    17,956    23,309    36,264    56%   359%
Less: Expected Credit Losses   -70    -64    -42    -26    -15    -42%   -79%
Private Sector   3,241,601    3,129,702    3,276,309    2,942,246    3,391,608    15%   5%
Overdrafts   327,445    311,064    518,438    409,913    416,190    2%   27%
Discounted documents   512,698    595,897    608,206    596,341    639,931    7%   25%
Mortgage loans   324,320    300,001    300,636    291,571    314,427    8%   -3%
Pledged loans   50,826    51,637    50,565    39,041    66,520    70%   31%
Personal loans   651,038    546,669    431,878    379,273    491,156    29%   -25%
Credit Card loans   979,533    940,594    875,940    717,659    795,437    11%   -19%
Leasing   5,334    4,000    17,058    11,924    11,430    -4%   114%
Others   456,492    439,611    569,990    578,549    736,807    27%   61%
Less: Expected Credit Losses   -66,085    -59,771    -96,402    -82,025    -80,290    -2%   21%
Total loans and other financing   3,318,405    3,178,475    3,302,702    2,968,870    3,472,924    17%   5%
                                    
Total loans in Pesos   3,099,077    2,966,005    2,980,261    2,368,337    2,832,181    20%   -9%
                                    
Total loans in foreign currency   219,328    212,470    322,441    600,533    640,743    7%   192%
                                    
EOP FX (Pesos per USD)   256.6750    350.0083    808.4833    857.4167    911.7500    6%   255%
                                    
Total loans in foreign currency (USD)   854    607    399    700    703    0%   -18%
USD financing / Financing to the private sector   7%   7%   10%   20%   18%          

 

19

 

 

BANCO MACRO 2Q24 EARNINGS RELEASE

 

Public Sector Assets .05

 

In 1Q24, the Bank’s public sector assets to total assets ratio was 41.8%, lower than the 47.3% registered in the previous quarter, and higher than the 22.4% posted in 2Q23. Other government securities decreased 13% or Ps.740.4 billion (dual Bonds) which were partially offset by a Ps.40.9 billion increase in Provincial loans (Loan extended to the Province of Salta).

 

In 2Q24, a 13% or Ps.740.4 billion decrease in Government Securities stands out.  

 

PUBLIC SECTOR ASSETS   MACRO Consolidated     Change  
In MILLION $ (Measuring Unit Current at EOP)     2Q23       3Q23       4Q23       1Q24       2Q24       QoQ       YoY  
Leliqs     2,275,839       1,165,537       -       -       -       -       -100 %
Other     2,581,741       2,546,317       3,733,927       5,610,743       4,870,347       -13 %     89 %
Government securities     4,857,580       3,711,854       3,733,927       5,610,743       4,870,347       -13 %     0 %
Provincial loans     65,905       5,961       5,789       1,128       42,044       3627 %     -36 %
Loans     65,905       5,961       5,789       1,128       42,044       3627 %     -36 %
                                                         
TOTAL PUBLIC SECTOR ASSETS     4,923,485       3,717,815       3,739,716       5,611,871       4,912,391       -12 %     0 %
                                                         
TOTAL PUBLIC SECTOR ASSETS (net of LEBAC/NOBAC/LELIQ)     2,647,646       2,552,278       3,739,716       5,611,871       4,912,391       -12 %     86 %
                                                         
TOTAL PUBLIC SECTOR ASSETS (net of LEBAC/NOBAC/LELIQ)/TOTAL ASSETS     22.4 %     25.0 %     31.0 %     47.3 %     41.8 %                

 

20

 

 

BANCO MACRO 2Q24 EARNINGS RELEASE

 

Funding .06

 

Deposits

 

Banco Macro’s deposit base totaled Ps.6.74 trillion in 2Q24, increasing 13% or Ps.769.5 billion QoQ and decreased 5% or Ps.329.3 billion YoY and representing 79% of the Bank’s total liabilities.

 

On a quarterly basis private sector deposits increased 11% or Ps.591.5 billion while public sector deposits increased 30% or Ps.181.9 billion.

 

The increase in private sector deposits was led by demand deposits, which increased 23% or Ps.581.5 billion, while time deposits decreased 2% or Ps.54.5 billion QoQ.

 

Within private sector deposits, peso deposits increased 17% or Ps.774.6 billion, while US dollar deposits decreased 6% or USD 97 million.

 

As of 2Q24, Banco Macro´s market share over private sector deposits was 8.1%.

 

DEPOSITS   MACRO Consolidated     Change  
In MILLION $ (Measuring Unit Current at EOP)     2Q23       3Q23       4Q23       1Q24       2Q24       QoQ       YoY  
Public sector   492,121    489,711    336,356    613,991    795,855    30%   62%
                                    
Financial sector   10,924    9,514    36,288    15,854    11,982    -24%   10%
                                    
Private sector   6,566,400    5,037,433    5,686,128    5,340,878    5,932,344    11%   -10%
Checking accounts   717,367    693,227    916,160    641,772    817,413    27%   14%
Savings accounts   2,238,452    1,782,367    2,570,801    1,923,548    2,329,377    21%   4%
Time deposits   3,478,573    2,447,323    1,884,262    2,385,286    2,330,754    -2%   -33%
Investment accounts   47,505    17,981    225,102    310,968    376,344    21%   692%
Other   84,503    96,535    89,803    79,304    78,456           
Total   7,069,445    5,536,658    6,058,772    5,970,723    6,740,181    13%   -5%
                                    
Pesos   6,187,784    4,672,981    4,218,860    4,651,846    5,426,436    17%   -12%
Foreign Currency (in Pesos)   881,661    863,677    1,839,912    1,318,877    1,313,745    0%   49%
                                    
EOP FX (Pesos per USD)   256.6750    350.0083    808.4833    857.4167    911.7500    6%   255%
Foreign Currency (USD)   3,435    2,468    2,276    1,538    1,441    -6%   -58%
                                    
USD Deposits / Total Deposits   12%   16%   30%   22%   19%          

 

Banco Macro’s transactional deposits represent approximately 52% of its total deposit base as of 2Q24. These accounts are low cost and are not sensitive to interest rate increases.

 

21

 

 
BANCO MACRO 2Q24 EARNINGS RELEASE

 

Other sources of funds

 

In 2Q24, the total amount of other sources of funds decreased 19% or Ps.862.6 billion compared to 1Q24 mainly due to a 20% or Ps.791.1 billion decrease in Shareholders’ equity generated by the negative net income registered during the period (Ps.281.2 billion and Ps.507.6 billion paid in dividends). Subordinated corporate bonds decreased 12% or Ps.49.7 billion. On a yearly basis, other sources of funds increased 15% or Ps.469.5 billion.

 

Other sources of funds   MACRO Consolidated     Change  
In MILLION $ (Measuring Unit Current at EOP)     2Q23       3Q23       4Q23       1Q24       2Q24       QoQ       YoY  
Central Bank of Argentina   198    149    155    73    79    8%   -60%
Banks and international institutions   12,632    14,300    27,364    21,996    20,081    -9%   59%
Financing received from Argentine financial institutions   1,812    726    8,074    1,340    1,247    -7%   -31%
Subordinated corporate bonds   387,500    398,155    590,064    419,207    369,515    -12%   -5%
Corporate bonds   12,148    15,028    105,821    79,652    59,924    -25%   393%
Shareholders' equity   2,759,856    2,776,577    3,674,848    3,983,967    3,192,839    -20%   16%
Total other source of funds   3,174,146    3,204,935    4,406,326    4,506,235    3,643,685    -19%   15%

 

 

 

22

 

 

Liquid Assets .07

 

In 2Q24, the Bank’s liquid assets amounted to Ps.6.61 trillion, showing an 11% or Ps.794.5 billion decrease QoQ, and a 1% or Ps.72.2 billion decrease on a yearly basis.

 

In 2Q24 Other Government securities decreased 13% or Ps.740.4 billion while Net Repos decreased 100%.

 

 

In 2Q24, Banco Macro’s liquid assets to total deposits ratio reached 98%.

 

LIQUID ASSETS   MACRO Consolidated     Change  
In MILLION $ (Measuring Unit Current at EOP)     2Q23       3Q23       4Q23       1Q24       2Q24       QoQ       YoY  
Cash   1,232,287    1,233,260    2,161,342    1,360,740    1,633,431    20%   33%
Guarantees for compensating chambers   94,132    90,665    122,457    118,112    105,895    -10%   12%
Call   297.00    -    9,708    (10,032)   4,400.00    -    - 
Leliq own portfolio   2,275,839    1,165,537    -    -    -    -    -100%
Net Repos   502,007    420,929    1,097,538    329,002    -    -100%   -100%
Other government & private securities   2,581,741    2,546,317    3,733,927    5,610,743    4,870,347    -13%   89%
Total   6,686,303    5,456,708    7,124,972    7,408,565    6,614,073    -11%   -1%
                                    
Liquid assets to total deposits   95%   99%   118%   124%   98%          

 

23

 

 

BANCO MACRO  2Q24 EARNINGS RELEASE

 

Solvency .08

 

Banco Macro continued showing high solvency levels in 2Q24 with an integrated capital (RPC) of Ps.3.1 trillion over a total capital requirement of Ps.696.4 billion. Banco Macro’s excess capital in 2Q24 was 338% or Ps.2.36 trillion.

 

The Capital Adequacy Ratio (as a percentage of risk-weighted assets- RWA) was 35.7% in 2Q24; TIER1 Ratio stood at 34%.

 

The Bank’s aim is to make THE BEST USE OF THIS EXCESS CAPITAL.  

 

MINIMUM CAPITAL REQUIREMENT   MACRO Consolidated     Change  
In MILLION $     2Q23       3Q23       4Q23       1Q24       2Q24       QoQ       YoY  
Credit risk requirement   92,213    124,155    250,774    312,304    398,956    28%   333%
Market risk requirement   25,821    19,898    38,335    39,647    48,217    22%   87%
Operational risk requirement   48,802    71,224    114,388    196,966    249,263    27%   411%
Total capital requirements   166,836    215,276    403,497    548,917    696,436    27%   317%
                                    
Ordinary Capital Level 1 (COn1)   717,831    979,304    1,745,360    3,184,428    3,149,367    -1%   339%
Deductible concepts Level 1 (COn1)   -41,726    -59,469    -121,538    -180,391    -241,637    34%   479%
Capital Level 2 (COn2)   61,480    83,763    128,995    136,797    145,407    6%   137%
Integrated capital - RPC (i)   737,585    1,003,598    1,752,832    3,140,849    3,053,153    -3%   314%
                                    
Excess capital   570,749    788,322    1,349,335    2,591,932    2,356,717    -9%   313%
                                    
Risk-weighted assets - RWA (ii)   2,051,880    2,645,752    4,952,407    6,747,756    8,560,197    27%   317%
                                    
Regulatory Capital ratio [(i)/(ii)]   35.9%   37.9%   35.4%   46.5%   35.7%          
                                    
Ratio TIER 1 [Capital Level 1/RWA]   33.0%   34.8%   32.8%   44.5%   34.0%          

 

RWA - (ii): Risk Weighted Assets, considering total capital requirements.

 

24

 

 

BANCO MACRO  2Q24 EARNINGS RELEASE

 

Asset Quality .09

 

In 2Q24, Banco Macro’s non-performing to total financing ratio (under Central Bank rules) reached a level of 1.23%, up from 1.14% in 1Q24 and improving from the 1.37% posted in 2Q23.

 

Consumer portfolio non-performing loans deteriorated 5 b.p. (up to 1.52% from 1.47%) while Commercial portfolio non-performing loans deteriorated 1 b.p. in 2Q24 (up to 0.73% from 0.72%).

 

The coverage ratio (measured as total allowances under Expected Credit Losses over Non Performing loans under Central Bank rules) reached 181.4% in 2Q24. Write-offs over total loans totaled 0.04%.

 

The Bank is committed to continue working in this area to maintain excellent asset quality standards.

 

ASSET QUALITY   MACRO Consolidated     Change  
In MILLION $ (Measuring Unit Current at EOP)     2Q23       3Q23       4Q23       1Q24       2Q24       QoQ       YoY  
Commercial portfolio   808,530    837,445    1,627,861    1,479,747    1,433,885    -3%   77%
Non-performing   9,534    9,565    19,609    10,637    10,445    -2%   10%
Consumer portfolio   2,693,241    2,526,975    2,275,960    1,897,847    2,401,339    27%   -11%
Non-performing   38,427    37,279    30,709    27,847    36,540    31%   -5%
Total portfolio   3,501,771    3,364,420    3,903,821    3,377,594    3,835,224    14%   10%
Non-performing   47,961    46,844    50,318    38,484    46,985    22%   -2%
Commercial non-perfoming ratio   1.18%   1.14%   1.20%   0.72%   0.73%          
Consumer non-perfoming ratio   1.43%   1.48%   1.35%   1.47%   1.52%          
                                    
Total non-performing/ Total portfolio   1.37%   1.39%   1.29%   1.14%   1.23%          
                                    
Total allowances   70,048    62,739    101,097    85,706    85,220    -1%   22%
Coverage ratio w/allowances   146.05%   133.93%   200.92%   222.71%   181.38%          
Write Offs   6,539    2,728    3,026    2,171    1,701    -22%   -74%
Write Offs/ Total portfolio   0.19%   0.08%   0.08%   0.06%   0.04%          

 

Expected Credit Losses (E.C.L) (I.F.R.S.9)

 

The Bank records an allowance for expected credit losses for all loans and other debt financial assets not held at fair value through profit or loss, together with loan commitments and financial guarantee contracts, in this section all referred to as ‘financial instruments’. Equity instruments are not subject to impairment under IFRS 9. The ECL allowance is based on the credit losses expected to arise over the life of the asset (the lifetime expected credit loss), unless there has been no significant increase in credit risk since origination, in which case, the allowance is based on the 12 months expected credit loss.(For further information please see our 2023 20-F)

 

25

 

 

BANCO MACRO  2Q24 EARNINGS RELEASE

 

2Q24 Snapsho .10

 

In AR$ Million. Figures of previous quarters have been restated to reflect the accumulated effect of the inflation adjustment for each period through June 30, 2024

 

 

26

 

 
BANCO MACRO  2Q24 EARNINGS RELEASE

 

 

 

 

27

 

 
BANCO MACRO  2Q24 EARNINGS RELEASE

 

 

 

 

 

 

28

 

 
BANCO MACRO  2Q24 EARNINGS RELEASE

 

Relevant and Recent Events .11

 

· Cash Dividend Payment (Installments 2 and 3)

 

·      Pursuant to (i) the resolutions adopted by the General and Special Shareholders’ Meeting held on April 12th 2024, (ii) Communication “A” 7984 and Communication “A” 7997 authorizing the financial entities with authorization of the Central Bank of the Republic of Argentina to distribute dividends in 3 equal and consecutive monthly instalments expressed in constant currency, (iii) the authorization by the Superintendency of Financial and Exchange Entities of the Central Bank of the Republic of Argentina obtained last May 6th, and (iv) the resolutions adopted by the Board of Directors at the meeting held on June 13th 2024, Banco Macro S.A. shall make available and pay to its shareholders instalment No. 2 of the cash dividend of AR $168,541,001,211.86, (i.e., AR $263.5869049712 per share representing 26,358.6905% of the capital stock of AR $639,413,408).

 

·      Available as of 06/26/2024

 

·      Record date: 06/25/2024

 

·      As to the aggregate amount of dividends Banco Macro S.A. shall distribute, please be advised that such amount is subject to a 7% withholding under section 97 of the Income Tax Law as revised in 2019.Such cash dividend shall be made available as of the above stated date at Caja de Valores S.A. located in 25 de Mayo 362, Autonomous City of Buenos Aires, Mondays to Fridays from 10 AM to 3 PM.

 

·      Shareholders holding American Depositary Receipts (ADRs) shall receive the relevant dividend under the applicable depositary agreement through The Bank of New York Mellon, as depositary agent of such certificates’ underlying Class B Shares as of the relevant date under the rules applicable in the jurisdiction in which such ADRs of the Company are listed.

 

·      Installment 3

 

·      Available as of 07/22/2024

 

·      Record date: 07/19/2024

 

·      As to the aggregate amount of dividends Banco Macro S.A. shall distribute, please be advised that such amount is subject to a 7% withholding under section 97 of the Income Tax Law as revised in 2019. Such cash dividend shall be made available as of the above stated date at Caja de Valores S.A. located in 25 de Mayo 362, Autonomous City of Buenos Aires, Mondays to Fridays from 10 AM to 3 PM.

 

29

 

 
BANCO MACRO  2Q24 EARNINGS RELEASE

 

·      Shareholders holding American Depositary Receipts (ADRs) shall receive the relevant dividend under the applicable depositary agreement through The Bank of New York Mellon, as depositary agent of such certificates’ underlying Class B Shares as of the relevant date under the rules applicable in the jurisdiction in which such ADRs of the Company are listed.

 

Regulatory Changes .12

 

· Repos & LEFi

 

In July through communication “A” 8060 the Central Bank of Argentina decided to end Repos and substitute them with LEFis (Fiscal Liquidity bills)

 

As of July 22, 2024 financial institutions are able to invest in LeFis from the Central Bank, issued by the Tresury:

 

·       Issued by the National Tresury.

·       1 year duration.

·       monetary policy rate as established by the BCRA.

·       Transferrable and negotiable only between financial institutions and the BCRA.

·       Can be sold totally or partially in t+1 or t+0.

·       Excluded from limits on financing of the non-financial public sector.

·       Not admitted as a reserve requirement security.

 

· Minimum Reserve Requirements

 

In May 2024, through Communication “A” 8026 the Central Bank established that reserve requirement in pesos facilities through granting financing within the “Ahora 12” and “cuota simple”programs, are terminated. Financial institutions can continue to compute the requirement for balances prior to May 23. Also, credit card financing rate limits for individuals are also terminated as of June 2024. As of that moment, the interest rate for credit card financing cannot surpass the 25% of that which results from the average interest rate of the prior month that the institution has granted on consumer loans (with no collaterals)

 

30

 

 
BANCO MACRO  2Q24 EARNINGS RELEASE

 

CER Exposure and Foreign Currency Position .13

 

CER EXPOSURE   MACRO Consolidated     Change  
In MILLION $ (Measuring Unit Current at EOP)     2Q23       3Q23       4Q23       1Q24       2Q24       QoQ       YoY  
CER adjustable ASSETS                            
                             
Government Securities   232,745    163,554    441,561    5,296,665    4,593,897    -13%   1874%
                                    
Loans (*)   244,600    223,512    223,220    239,954    268,185    12%   10%
Private sector loans   35,504    32,979    34,987    25,807    30,840    20%   -13%
Mortgage loans (UVA adjusted)   208,883    190,354    188,121    214,144    237,341    11%   14%
Other loans   213    179    112    3    4    33%   -98%
Total CER adjustable assets   477,345    387,066    664,781    5,536,619    4,862,082    -12%   919%
                                    
CER adjustable LIABILITIES                                   
Deposits (*)   27,060    13,231    62,030    44,958    43,745    -3%   62%
UVA Unemployment fund   27,888    27,060    22,472    22,672    26,299    16%   -6%
Total CER adjustable liabilities   54,948    40,291    84,502    67,630    70,044    4%   27%
                                    
NET CER EXPOSURE   422,397    346,775    580,279    5,468,989    4,792,038    -12%   1034%

 

(*) Includes Loans &Time Deposits CER adjustable (UVAs)

 

FOREIGN CURRENCY POSITION   MACRO Consolidated     Change  
In MILLION $ (Measuring Unit Current at EOP)     2Q23       3Q23       4Q23       1Q24       2Q24       QoQ       YoY  
Cash and deposits in Banks   1,027,591    1,054,818    2,012,617    1,175,402    1,095,475    -7%   7%
Cash   188,409    197,797    607,028    299,926    156,699    -48%   -17%
Central Bank of Argentina   465,848    524,235    886,395    452,335    505,081    12%   8%
Other financial institutions local and abroad   372,796    332,721    519,094    422,555    433,144    3%   16%
Others   538    65    100    586    551    -6%   2%
Financial instruments at fair value through P&L   2,147,336    2,206,624    3,123,340    144,658    156,992    9%   -93%
Other financial assets   97,917    93,225    144,946    119,748    109,316    -9%   12%
Loans and other financing   219,328    212,470    322,441    600,533    640,743    7%   192%
Non financial private sector & foreign residents   219,328    212,470    322,441    600,533    640,743    7%   192%
Other debt securities   384,557    139,660    159,362    75,383    62,509    -17%   -84%
Guarantees received   34,848    40,145    100,265    28,977    28,894    0%   -17%
Investment in equity instruments   664    1,229    619    441    227    -49%   -66%
Total Assets   3,912,241    3,748,171    5,863,590    2,145,142    2,094,156    -2%   -46%
Deposits   881,661    863,677    1,839,912    1,318,877    1,313,745    0%   49%
Non financial public sector   36,299    33,706    61,722    24,796    41,916    69%   15%
Financial sector   8,381    8,478    12,775    8,936    8,037    -10%   -4%
Non financial private sector & foreign residents   836,979    821,494    1,765,415    1,285,144    1,263,793    -2%   51%
Financial liabiities at fair value through P&L   5,338    29,031    24,840    16,841    13,365    -21%   150%
Other liabilities from financial intermediation   98,816    107,146    155,673    174,492    189,036    8%   91%
Financing from the Central Bank and other fin. Inst   12,958    14,523    27,638    22,324    20,217    -9%   56%
Issued corporate bonds   12,148    15,028    96,810    69,534    48,597    -30%   300%
Subordinated corporate bonds   387,500    398,155    590,064    419,207    369,515    -12%   -5%
Other non financial liabilities   3,193    3,315    7,737    4,731    4,823    2%   51%
Total Liabilities   1,401,614    1,430,875    2,742,674    2,026,006    1,959,298    -3%   40%
                                    
NET FX POSITION (Pesos)   2,510,627    2,317,296    3,120,916    119,136    134,858    13%   -95%
EOP FX (Pesos per USD)   256.6750    350.0083    808.4833    857.4167    911.7500    6%   255%
NET FX POSITION (USD)   9,781    6,621    3,860    139    148    6%   -98%

 

31

 

 

BANCO MACRO  2Q24 EARNINGS RELEASE

 

QUARTERLY BALANCE SHEET   MACRO Consolidated     Change  
In MILLION $ (Measuring Unit Current at EOP)     2Q23       3Q23       4Q23       1Q24       2Q24       QoQ       YoY  
ASSETS                                   
Cash and deposits in Banks   1,232,287    1,233,260    2,161,342    1,360,740    1,633,431    20%   33%
Cash   294,370    295,927    714,328    403,357    240,567    -40%   -18%
Central Bank of Argentina   564,552    604,533    927,778    534,230    959,132    80%   70%
Other local & foreign entities   372,827    332,736    519,136    422,567    433,182    3%   16%
Other   538    64    100    586    550    -6%   2%
Debt securities at fair value through profit & loss   2,179,788    2,228,101    3,149,822    5,137,478    4,487,257    -13%   106%
Derivatives   981    2,119    23,628    74,322    46,762    -100%   4667%
Repo Transactions   502,605    433,652    1,106,649    331,030    0    -100%   -100%
Other financial assets   510,024    515,293    362,505    263,246    346,560    32%   -32%
Loans & other receivables   3,318,405    3,178,475    3,302,702    2,968,870    3,472,924    17%   5%
Non Financial Public Sector   68,971    8,710    8,479    3,341    45,067    1249%   -35%
Financial Sector   7,833    40,063    17,914    23,283    36,249    56%   363%
Non Financial private sector and foreign   3,241,601    3,129,702    3,276,309    2,942,246    3,391,608    15%   5%
Other debt securities   3,115,505    1,664,657    776,246    577,931    563,567    -2%   -82%
Financial assets in guarantee   158,679    160,365    238,921    201,805    160,627    -20%   1%
Income tax assets   0    0    1,578    1,224    50,526           
Investments in equity instruments   5,264    6,545    5,778    3,934    6,412    63%   22%
Investments in other companies (subsidiaries and joint ventures)   4,159    3,963    3,029    2,565    2,700    5%   -35%
Property, plant and equipment   571,607    573,859    641,406    643,796    646,604    0%   13%
Intangible assets   100,338    98,557    135,136    130,982    128,536    -2%   28%
Deferred income tax assets   576    1,007    1,790    1,498    1,863    24%   223%
Other non financial assets   67,479    72,603    96,725    79,081    80,947    2%   20%
Non-current assets held for sale   48,427    46,491    75,305    75,348    72,549    -4%   50%
TOTAL ASSETS   11,816,124    10,218,947    12,082,562    11,853,850    11,701,265    -1%   -1%
                                    
LIABILITIES                                   
Deposits   7,069,445    5,536,658    6,058,772    5,970,723    6,740,181    13%   -5%
Non Financial Public Sector   492,121    489,711    336,356    613,991    795,855    30%   62%
Financial Sector   10,924    9,514    36,288    15,854    11,982    -24%   10%
Non Financial private sector and foreign   6,566,400    5,037,433    5,686,128    5,340,878    5,932,344    11%   -10%
Liabilities at fair value through profit & loss   5,338    29,031    24,854    23,556    52,973    125%   892%
Derivatives   41    109    5,102    7,055    333    -95%   712%
Repo Transactions   27,081    106,907    42,429    24,729    -    -    -86%
Other financial liabilities   874,227    884,629    680,453    587,637    757,037    29%   -13%
Financing received from Central Bank and
Other Financial Institutions		   14,642    15,175    35,593    23,409    21,407    -9%   46%
Issued Corporate Bonds   12,148    15,028    105,821    79,652    59,924    -25%   393%
Current income tax liabilities   84,312    68,990    384,505    379,132    4,027    -99%   -95%
Subordinated corporate bonds   387,500    398,155    590,064    419,207    369,515    -12%   -5%
Provisions   13,486    10,857    15,718    13,940    13,752    -1%   2%
Deferred income tax liabilities   73,449    69,549    82,231    71,046    38,988    -45%   -47%
Other non financial liabilities   494,217    306,826    381,334    269,487    449,510    67%   -9%
TOTAL LIABILITIES   9,055,886    7,441,914    8,406,876    7,869,573    8,507,647    8%   -6%
                                    
SHAREHOLDERS' EQUITY                                   
Capital Stock   639    639    639    639    639    0%   0%
Issued Shares premium   12,430    12,430    12,430    12,430    12,430    0%   0%
Adjustment to Shareholders' Equity   1,030,218    1,030,218    1,030,218    1,030,218    1,030,218    0%   0%
Reserves   1,502,266    1,502,266    1,502,266    1,502,266    2,048,482    36%   36%
Retained earnings   1,096    1,096    1,096    1,056,909    1,231    -100%   12%
Other accumulated comprehensive income   4,349    445    72,387    54,950    6,995    -87%   - 
Net income for the period / fiscal year   208,858    229,483    1,055,812    326,555    92,844    -72%   -56%
Shareholders' Equity attributable to parent company   2,759,856    2,776,577    3,674,848    3,983,967    3,192,839    -20%   16%
                                    
Shareholders' Equity attributable to non controlling interest   382    456    838    310    779    151%   104%
TOTAL SHAREHOLDERS' EQUITY   2,760,238    2,777,033    3,675,686    3,984,277    3,193,618    -20%   16%

 

32

 

 

BANCO MACRO  2Q24 EARNINGS RELEASE

 

INCOME STATEMENT   MACRO Consolidated     Change  
In MILLION $ (Measuring Unit Current at EOP)     2Q23       3Q23       4Q23       1Q24       2Q24       QoQ       YoY
Interest Income   1,141,048    1,182,551    1,031,516    849,500    619,675    -27%   -46%
Interest Expense   740,011    872,004    700,395    648,854    431,717    -33%   -42%
 Net Interest Income   401,037    310,547    331,121    200,646    187,958    -6%   -53%
Fee income   108,465    108,660    114,010    100,930    112,147    11%   3%
Fee expense   10,606    10,857    12,860    11,950    16,414    37%   55%
Net Fee Income   97,859    97,803    101,150    88,980    95,733    8%   -2%
Subtotal (Net Interest Income + Net Fee Income)   498,896    408,350    432,271    289,626    283,691    -2%   -43%
Net Income from financial instruments  at Fair Value Through Profit & Loss   192,768    -100,192    1,609,378    1,508,685    121,199    -92%   -37%
Result from assets at amortised cost   -    378    237    25    -4    -    - 
Difference in quoted prices of gold and foreign currency   281,716    656,076    328,532    95,555    25,654    -73%   -91%
Other operating income   28,426    31,092    43,253    49,446    46,182    -7%   62%
Provision for loan losses   20,507    13,404    32,687    22,359    16,477    -26%   -20%
Net Operating Income   981,299    982,300    2,380,984    1,920,978    460,245    -76%   -53%
Personnel expenses   114,011    118,826    159,962    158,158    136,435    -14%   20%
Administrative expenses   63,875    63,593    113,310    80,693    67,083    -17%   5%
Depreciation and impairment of assets   22,960    22,747    36,233    28,792    27,000    -6%   18%
Other operating expenses   137,400    129,504    202,091    166,568    130,658    -22%   -5%
Operating Income   643,053    647,630    1,869,388    1,486,767    99,069    -93%   -85%
Income from associates and joint ventures   -705    -196    281,284    -254    -5,648    -    - 
Result from net monetary position   -406,562    -595,013    -945,271    -1,054,000    -462,660    -    - 
Net Income before income tax on cont. operations   235,786    52,421    1,205,401    432,513    -369,239    -185%   -257%
Income tax on continuing operations   71,714    31,721    378,689    106,176    -135,996    -    - 
Net Income from continuing operations   164,072    20,700    826,712    326,337    -233,243    -171%   -242%
                                    
Net Income for the period   164,072    20,700    826,712    326,337    -233,243    -171%   -242%
Net Income of the period attributable to parent company   163,959    20,626    826,330    326,556    -233,712    -172%   -243%
Net income of the period attributable to non-controlling interests   113    74    382    -219    469    -    315%
                                    
Other Comprehensive Income   7,995    -3,904    71,943    -17,436    -47,955    -    - 
Foreign currency translation differences in financial statements conversion   -227    353    18,393    -16,674    -4,219    -    - 
Profits or losses from financial assets measured
at fair value  through other comprehensive income
(FVOCI)  (IFRS 9(4.1.2)(a)		   8,222    -4,257    53,550    -762    -43,736    -    - 
                                    
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD   172,067    16,796    898,655    308,901    -281,198    -191%   -263%
Total Comprehensive Income attributable to parent Company   171,954    16,722    898,273    309,120    -281,667    -    - 
Total Comprehensive Income attributable to non-controlling interests   113    74    382    -219    469    -    315%

 

 

33

 

 

BANCO MACRO  2Q24 EARNINGS RELEASE

 

QUARTERLY ANNUALIZED RATIOS   MACRO Consolidated 
    2Q23    3Q23    4Q23    1Q24    2Q24 
Profitability & performance                         
Net interest margin   38.3%   58.7%   52.2%   26.2%   19.9%
Net interest margin adjusted (exc. FX)   22.5%   18.8%   26.2%   17.8%   17.5%
Net fee income ratio   5.2%   5.5%   0.7%   1.4%   18.9%
Efficiency ratio   21.7%   22.4%   13.5%   14.6%   55.9%
Net fee income as % of A&G Expenses   23.9%   24.6%   5.2%   9.9%   33.8%
Return on average assets   6.1%   0.8%   32.1%   11.9%   -8.2%
Return on average equity   24.8%   3.0%   106.3%   37.4%   -27.4%
Liquidity                         
Loans as a percentage of total deposits   46.9%   57.4%   54.5%   49.7%   51.5%
Liquid assets as a percentage of total deposits   95.0%   99.0%   118.0%   124.0%   98.0%
Capital                         
Total equity as a percentage of total assets   23.4%   27.2%   30.4%   33.6%   27.3%
Regulatory capital as % of APR   36.0%   37.9%   35.4%   46.6%   35.7%
Asset Quality                         
Allowances over total loans   2.1%   2.0%   3.1%   2.9%   2.5%
Non-performing financing as a percentage of total financing   1.4%   1.4%   1.3%   1.1%   1.2%
Coverage ratio w/allowances   146.1%   133.9%   200.9%   222.7%   181.4%
Cost of Risk   2.7%   1.7%   3.9%   3.3%   2.2%

 

ACCUMULATED ANNUALIZED RATIOS   MACRO Consolidated 
    2Q23    3Q23    4Q23    1Q24    2Q24 
Profitability & performance                         
Net interest margin   35.9%   43.0%   44.8%   26.2%   23.1%
Net interest margin adjusted (exc. FX)   23.5%   22.0%   22.8%   17.8%   17.6%
Net fee income ratio   6.6%   6.2%   3.6%   1.4%   4.6%
Efficiency ratio   23.4%   23.0%   18.6%   14.6%   22.2%
Net fee income as % of A&G Expenses   28.2%   26.9%   19.5%   9.9%   20.9%
Return on average assets   3.9%   2.8%   9.9%   11.9%   1.7%
Return on average equity   15.5%   11.3%   37.5%   37.4%   5.4%
Liquidity                         
Loans as a percentage of total deposits   46.9%   57.4%   54.5%   49.7%   51.5%
Liquid assets as a percentage of total deposits   95.0%   99.0%   118.0%   124.0%   98.0%
Capital                         
Total equity as a percentage of total assets   23.4%   27.2%   30.4%   33.6%   27.3%
Regulatory capital as % of APR   36.0%   37.9%   35.4%   46.6%   35.7%
Asset Quality                         
Allowances over total loans   2.1%   2.0%   3.1%   2.9%   2.5%
Non-performing financing as a percentage of total financing   1.4%   1.4%   1.3%   1.1%   1.2%
Coverage ratio w/allowances   146.1%   133.9%   200.9%   222.7%   181.4%
Cost of Risk   2.4%   2.1%   2.6%   3.3%   2.7%

 

34

 

 

 

 

35

 

 

SIGNATURE

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereto duly authorized.

 

Date: August 22, 2024

 

  MACRO BANK INC.
     
     
  By: /s/ Jorge Francisco Scarinci
  Name: Jorge Francisco Scarinci
  Title: Chief Financial Officer