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
May 17, 2023
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 |
1Q23 Earnings Release |
Banco Macro Announces Results for the First Quarter of 2023
Buenos Aires, Argentina, May 17, 2023 – Banco Macro S.A. (NYSE: BMA; BYMA: BMA) (“Banco Macro” or “BMA” or the “Bank”) announced today its results for the first quarter ended March 31, 2023 (“1Q23”). All figures are in Argentine pesos (Ps.) and have been restated in terms of the measuring unit current at the end of the reporting period. As of 1Q20, the Bank began reporting results applying Hyperinflation Accounting, in accordance with IFRS IAS 29 as established by the Central Bank. For ease of comparison, figures of previous quarters of 2022 have been restated applying IAS 29 to reflect the accumulated effect of the inflation adjustment for each period through March 31, 2023.
Summary
• The Bank’s net income totaled Ps.9.8 billion in 1Q23. This result was 52% lower than the Ps.20.2 billion posted in 4Q22 and 20% lower than the Ps.12.3 billion posted in 1Q22. In 1Q23, the annualized return on average equity (“ROAE”) and the annualized return on average assets (“ROAA”) were 8.2% and 1.7%, respectively.
• In 1Q23 Operating Income (before G&A and personnel expenses) totaled Ps.167.8 billion, 5% or Ps.8 billion higher than in 4Q22 and 28% or Ps.36.7 billion higher than the same period of last year.
• In 1Q23 Operating Income (after G&A and personnel expenses) totaled Ps.104 billion, 9% or Ps.8.8 billion higher than in 4Q22 and 39% or Ps.29.3 billion higher than the same period of last year.
• In 1Q23, Banco Macro’s financing to the private sector decreased 4% or Ps.30 billion quarter over quarter (“QoQ”) totaling Ps.694.5 billion and decreased 8% or Ps.63.5 billion year over year (“YoY”).
• In 1Q23, Banco Macro’s total deposits decreased 7% or Ps.112.6 billion QoQ and increased 6% or Ps.80.1 billion YoY, totaling Ps.1.5 trillion and representing 81% of the Bank’s total liabilities. Private sector deposits decreased 6% or Ps.89.7 billion QoQ.
• Banco Macro continued showing a strong solvency ratio, with an excess capital of Ps.520 billion, 42.4% regulatory capital ratio – Basel III and 39.1 % Tier 1 Ratio. In addition, the Bank’s liquid assets remained at an adequate level, reaching 97% of its total deposits in 1Q23.
• In 1Q23, the Bank’s non-performing to total financing ratio was 1.41% and the coverage ratio remained stable at 145.33%.
• As of 1Q23, through its 463 branches and 7.756 employees Banco Macro serves 4.6 million retail customers (1.7 million digital customers) across 23 of the 24 Provinces in Argentina and over 117,400 corporate customers.
1Q23 Earnings Release Conference Call | IR Contacts in Buenos Aires: | |
Thursday, May 18, 2023 | Jorge Scarinci | |
Time: 11:00 a.m. Eastern Time | 12:00 p.m. Buenos Aires Time | Chief Financial Officer | |
To participate, please dial: | ||
Argentina Toll Free: | Nicolás A. Torres | |
(011) 3984 5677 | Investor Relations | |
Participants Dial In (Toll Free): | ||
+1 (844) 450 3847 | Webcast Replay: click here | Phone: (54 11) 5222 6682 |
Participants International Dial In: | E-mail: investorelations@macro.com.ar | |
+1 (412) 317 6370 | Available from 05/18/2023 through 06/02/2023 | |
Conference ID: Banco Macro | Visit our website at: | |
Webcast: click here | www.macro.com.ar/relaciones-inversores |
1Q23 Earnings Release |
Disclaimer
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.
1Q23 Earnings Release |
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 2022 have been restated in accordance with said Communication in order to make a comparison possible
Results
Earnings per outstanding share were Ps.15.3 in 1Q23, 52% lower than in 4Q22 and 20% lower than the result posted a year ago.
EARNINGS PER SHARE | MACRO Consolidated | Change | ||||||||||||||||||||||||||
In MILLION $ (Measuring Unit Current at EOP) | 1Q22 | 2Q22 | 3Q22 | 4Q22 | 1Q23 | QoQ | YoY | |||||||||||||||||||||
Net income -Parent Company- (M $) | 12,274 | 7,218 | 12,683 | 20,225 | 9,777 | -52 | % | -20 | % | |||||||||||||||||||
Average # of shares outstanding (M) | 639 | 639 | 639 | 639 | 639 | 0 | % | 0 | % | |||||||||||||||||||
Average #of treasury stocks (shares repurchased) (M) | 0 | 0 | 0 | - | - | - | -100 | % | ||||||||||||||||||||
Book value per avg. Outstanding share ($) | 903 | 925 | 949 | 976 | 990 | 1 | % | 10 | % | |||||||||||||||||||
Shares Outstanding (M) | 639 | 639 | 639 | 639 | 639 | 0 | % | 0 | % | |||||||||||||||||||
Earnings per avg. outstanding share ($) | 19.19 | 11.30 | 19.85 | 31.65 | 15.30 | -52 | % | -20 | % | |||||||||||||||||||
EOP FX (Pesos per USD) | 98.7350 | 102.7500 | 110.9783 | 125.2150 | 147.3150 | 18 | % | 49 | % | |||||||||||||||||||
Book value per avg. issued ADS (USD) | 91.46 | 90.02 | 85.51 | 77.95 | 67.20 | -14 | % | -27 | % | |||||||||||||||||||
Earnings per avg. outstanding ADS (USD) | 1.94 | 1.10 | 1.79 | 2.53 | 1.04 | -59 | % | -47 | % |
Banco Macro’s 1Q23 net income of Ps.9.8 billion was 52% or Ps.10.4 billion lower than the previous quarter and 20% or Ps.2.5 billion lower YoY due to a higher loss from the net monetary position (i.e. higher inflation was observed in the quarter) . This result represented an annualized ROAE and ROAA of 8.2% and 1.7% respectively.
Net operating income (before G&A and personnel expenses) was Ps.167.8 billion in 1Q23, increasing 5% or Ps.8 billion compared to 4Q22 due to higher income from financial assets at fair value through profit or loss and higher net fee income. On a yearly basis, Net Operating Income (before G&A and personnel expenses) increased 28% or Ps.36.7billion.
In 1Q23, Provision for loan losses totaled Ps.3.5 billion, 13% or Ps.397 million higher than in 4Q22. On a yearly basis provision for loan losses increased 129% or Ps.2 billion.
Operating income (after G&A and personnel expenses) was Ps.104 billion in 1Q23, 9% or Ps.8.8 billion higher than in 4Q22 and 39% or Ps.29.3 billion higher than a year ago.
It is important to emphasize that this result was obtained with a leverage of only 3.8x assets to equity ratio.
1Q23 Earnings Release |
INCOME STATEMENT | MACRO Consolidated | Change | ||||||||||||||||||||||||||
In MILLION $ (Measuring Unit Current at EOP) | 1Q22 | 2Q22 | 3Q22 | 4Q22 | 1Q23 | QoQ | YoY | |||||||||||||||||||||
Net Interest Income | 85,658 | 93,600 | 90,651 | 101,771 | 97,662 | -4 | % | 14 | % | |||||||||||||||||||
Net fee income | 20,870 | 20,785 | 20,335 | 20,774 | 22,032 | 6 | % | 6 | % | |||||||||||||||||||
Net Interest Income + Net Fee Income | 106,528 | 114,385 | 110,986 | 122,545 | 119,694 | -2 | % | 12 | % | |||||||||||||||||||
Net Income from financial instruments at fair value through P&L | 13,029 | 12,860 | 36,454 | -4,098 | 9,195 | -324 | % | -29 | % | |||||||||||||||||||
Income from assets at amortized cost | 0 | 0 | 0 | 206 | 0 | 0 | % | 0 | % | |||||||||||||||||||
Differences in quoted prices of gold and foreign currency | 6,303 | 9,369 | 22,889 | 37,246 | 36,673 | -2 | % | 482 | % | |||||||||||||||||||
Other operating income | 6,772 | 6,648 | 5,348 | 7,011 | 5,716 | -18 | % | -16 | % | |||||||||||||||||||
Provision for loan losses | 1,522 | 1,345 | 2,035 | 3,082 | 3,479 | 13 | % | 129 | % | |||||||||||||||||||
Net Operating Income | 131,110 | 141,917 | 173,642 | 159,828 | 167,799 | 5 | % | 28 | % | |||||||||||||||||||
Employee benefits | 20,044 | 26,384 | 25,209 | 22,874 | 23,468 | 3 | % | 17 | % | |||||||||||||||||||
Administrative expenses | 11,265 | 11,888 | 11,844 | 12,668 | 11,650 | -8 | % | 3 | % | |||||||||||||||||||
Depreciation and impairment of assets | 4,478 | 4,602 | 4,693 | 4,790 | 4,894 | 2 | % | 9 | % | |||||||||||||||||||
Other operating expenses | 20,680 | 21,621 | 24,667 | 24,323 | 23,835 | -2 | % | 15 | % | |||||||||||||||||||
Operating Income | 74,643 | 77,422 | 107,229 | 95,173 | 103,952 | 9 | % | 39 | % | |||||||||||||||||||
Result from associates & joint ventures | -73 | -70 | -138 | 143 | -220 | - | - | |||||||||||||||||||||
Result from net monetary postion | -59,077 | -66,526 | -83,293 | -69,351 | -88,387 | 27 | % | 50 | % | |||||||||||||||||||
Result before taxes from continuing operations | 15,493 | 10,826 | 23,798 | 25,965 | 15,345 | -41 | % | -1 | % | |||||||||||||||||||
Income tax | 3,219 | 3,608 | 11,115 | 5,740 | 5,568 | -3 | % | 73 | % | |||||||||||||||||||
Net income from continuing operations | 12,274 | 7,218 | 12,683 | 20,225 | 9,777 | -52 | % | -20 | % | |||||||||||||||||||
Net Income of the period | 12,274 | 7,218 | 12,683 | 20,225 | 9,777 | -52 | % | -20 | % | |||||||||||||||||||
Net income of the period attributable to parent company | 12,298 | 7,224 | 12,657 | 20,213 | 9,763 | -52 | % | -21 | % | |||||||||||||||||||
Net income of the period attributable to minority interest | -24 | -6 | 26 | 12 | 14 | 17 | % | - | ||||||||||||||||||||
Other Comprehensive Income | -1,221 | -5,475 | 2,970 | -3,040 | -832 | - | - | |||||||||||||||||||||
Foreign currency translation differences in financial statements conversion | -527 | -271 | -253 | 176 | -212 | - | - | |||||||||||||||||||||
Profits or losses from financial assets measured at fair value through other comprehensive income (FVOCI) (IFRS 9(4.1.2)(a) | -694 | -5,204 | 3,223 | -3,216 | -620 | - | - | |||||||||||||||||||||
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD | 11,053 | 1,743 | 15,653 | 17,185 | 8,945 | -48 | % | -19 | % | |||||||||||||||||||
Total Comprehensive Income attributable to parent Company | 11,077 | 1,749 | 15,627 | 17,173 | 8,931 | -48 | % | -19 | % | |||||||||||||||||||
Total Comprehensive Income attributable to non-controlling interests | -24 | -6 | 26 | 12 | 14 | 17 | % | - |
The Bank’s 1Q23 net interest income totaled Ps.97.7 billion, 4% or Ps.4.1 billion lower than in 4Q22 and 14% or Ps.12 billion higher YoY.
In 1Q23 interest income totaled Ps.228.6 billion,5% or Ps.13.2 billion lower than in 4Q22 and 63% or Ps.88 billion higher than in 1Q22.
Income from interest on loans and other financing totaled Ps.85.6 billion, 2% or Ps.1.6 billion higher compared with the previous quarter mainly due a 304 basis points increase in the average lending rate, while the average volume of private sector loans decreased 2%. On a yearly basis Income from interest on loans increased 25% or Ps.17.3 billion.
In 1Q23 income from government and private securities decreased 9% or Ps.13.1 billion QoQ (due to lower income from Government securities) and increased 91% or Ps.64.6 billion compared with the same period of last year. This result is explained 18% by income from government and private securities through other comprehensive income (Leliqs and Other government securities) and the remaining 82% is explained by income from government and private securities in pesos at amortized cost.
In 1Q23, income from Repos totaled Ps.6.7 billion, 21% or Ps.1.8 billion lower than the previous quarter and 662% or Ps.5.8 higher than a year ago.
1Q23 Earnings Release |
In 1Q23 FX income totaled Ps.36.7 billion, 2% or Ps.573 million lower than the previous quarter and Ps.30.4 billion higher than a year ago. FX income gain was due to the 18% argentine peso depreciation against the US dollar, the Bank’s long dollar position during the quarter and FX trading results.
FX INCOME | MACRO Consolidated | Variation | ||||||||||||||||||
In MILLION $ (Measuring Unit Current at EOP) | 1Q22 | 4Q22 | 1Q23 | QoQ | YoY | |||||||||||||||
(1) Differences in quoted prices of gold and foreign currency | 6,303 | 37,246 | 36,673 | -2 | % | 482 | % | |||||||||||||
Translation of FX assets and liabilities to Pesos | 5,792 | 37,037 | 36,454 | -2 | % | 529 | % | |||||||||||||
Income from foreign currency exchange | 511 | 209 | 219 | 5 | % | -57 | % | |||||||||||||
(2) Net Income from financial assets and liabilities at fair value through P&L | - | 753 | 194 | -74 | % | - | ||||||||||||||
Income from investment in derivative financing instruments | - | 753 | 194 | -74 | % | - | ||||||||||||||
(1)+(2) Total Result from Differences in quoted prices of gold and foreign currency | 6,303 | 38,000 | 36,867 | -3 | % | 485 | % |
INTEREST INCOME | MACRO Consolidated | Change | ||||||||||||||||||||||||||
In MILLION $ (Measuring Unit Current at EOP) | 1Q22 | 2Q22 | 3Q22 | 4Q22 | 1Q23 | QoQ | YoY | |||||||||||||||||||||
Interest on Cash and due from Banks | 6 | 27 | 138 | 316 | 550 | 74 | % | 9067 | % | |||||||||||||||||||
Interest from government securities | 70,592 | 93,446 | 110,926 | 148,186 | 135,096 | -9 | % | 91 | % | |||||||||||||||||||
Interest from private securities | 51 | 39 | 47 | 98 | 106 | 8 | % | 108 | % | |||||||||||||||||||
Interest on loans and other financing | ||||||||||||||||||||||||||||
To the financial sector | 188 | 137 | 119 | 209 | 106 | -49 | % | -44 | % | |||||||||||||||||||
To the public non financial sector | 564 | 447 | 426 | 405 | 387 | -4 | % | -31 | % | |||||||||||||||||||
Interest on overdrafts | 5,177 | 6,704 | 9,341 | 9,698 | 9,339 | -4 | % | 80 | % | |||||||||||||||||||
Interest on documents | 6,233 | 6,465 | 8,811 | 9,635 | 9,081 | -6 | % | 46 | % | |||||||||||||||||||
Interest on mortgages loans | 9,550 | 12,237 | 12,141 | 11,862 | 11,004 | -7 | % | 15 | % | |||||||||||||||||||
Interest on pledged loans | 1,059 | 955 | 862 | 747 | 802 | 7 | % | -24 | % | |||||||||||||||||||
Interest on personal loans | 28,200 | 27,595 | 26,527 | 26,476 | 25,948 | -2 | % | -8 | % | |||||||||||||||||||
Interest on credit cards loans | 10,380 | 11,140 | 12,366 | 15,667 | 18,187 | 16 | % | 75 | % | |||||||||||||||||||
Interest on financial leases | 93 | 81 | 107 | 138 | 115 | -17 | % | 24 | % | |||||||||||||||||||
Interest on other loans | 7,677 | 6,786 | 8,457 | 9,863 | 11,168 | 13 | % | 45 | % | |||||||||||||||||||
Interest on Repos | ||||||||||||||||||||||||||||
From the BCRA | 812 | 1,003 | 5,471 | 8,096 | 6,713 | -17 | % | 727 | % | |||||||||||||||||||
Other financial institutions | 71 | 215 | 103 | 401 | 16 | -96 | % | -77 | % | |||||||||||||||||||
Total Interest income | 140,653 | 167,277 | 195,842 | 241,797 | 228,618 | -5 | % | 63 | % | |||||||||||||||||||
Income from Interest on loans | 68,369 | 71,963 | 78,612 | 84,086 | 85,644 | 2 | % | 25 | % |
The Bank’s 1Q23 interest expense totaled Ps.131 billion, decreasing 6% or Ps.9.1 billion compared to the previous quarter and 138% (Ps.76 billion) higher compared to 1Q22.
In 1Q23, interest on deposits represented 98% of the Bank’s total interest expense, decreasing 7% or Ps.10.1 billion QoQ, due to a 14% decrease in the average volume of deposits from the private sector, while the average rate paid on said deposits increased 537 basis points. On a yearly basis, interest on deposits increased 143% or Ps.75.1 billion.
1Q23 Earnings Release |
INTEREST EXPENSE | MACRO Consolidated | Change | ||||||||||||||||||||||||||
In MILLION $ (Measuring Unit Current at EOP) | 1Q22 | 2Q22 | 3Q22 | 4Q22 | 1Q23 | QoQ | YoY | |||||||||||||||||||||
Deposits | ||||||||||||||||||||||||||||
Interest on checking accounts | 880 | 2,304 | 4,796 | 10,861 | 5,910 | -46 | % | 572 | % | |||||||||||||||||||
Interest on saving accounts | 803 | 1,170 | 1,293 | 1,370 | 1,281 | -6 | % | 60 | % | |||||||||||||||||||
Interest on time deposits | 50,974 | 67,782 | 97,142 | 125,681 | 120,579 | -4 | % | 137 | % | |||||||||||||||||||
Interest on other financing from BCRA and financial inst. | 91 | 126 | 170 | 229 | 212 | -7 | % | 133 | % | |||||||||||||||||||
Repos | ||||||||||||||||||||||||||||
Other financial institutions | 444 | 556 | 125 | 63 | 1,240 | 1868 | % | 179 | % | |||||||||||||||||||
Interest on corporate bonds | 228 | 98 | 16 | 17 | 16 | -6 | % | -93 | % | |||||||||||||||||||
Interest on subordinated bonds | 1,484 | 1,405 | 1,370 | 1,375 | 1,344 | -2 | % | -9 | % | |||||||||||||||||||
Interest on other financial liabilities | 91 | 236 | 279 | 430 | 374 | -13 | % | 311 | % | |||||||||||||||||||
Total financial expense | 54,995 | 73,677 | 105,191 | 140,026 | 130,956 | -6 | % | 138 | % | |||||||||||||||||||
Expenses from interest on deposits | 52,657 | 71,256 | 103,231 | 137,912 | 127,770 | -7 | % | 143 | % |
In 1Q23, the Bank’s net interest margin (including FX) was 33.6%, higher than the 32.7% posted in 4Q22 and the 22.8% posted in 1Q22.
In 1Q23, Net Interest Margin (excluding FX) was 24.4%, higher than the 23.9% posted in 4Q22 and than the 21.2% posted in 1Q22.
In 1Q23, Net Interest Margin (Pesos) was 26.8%, higher than the 26.3% posted in 4Q22 and than the 23.7% in 1Q22; meanwhile Net Interest Margin (USD) was 6.6%, higher than the 5.6% posted in 4Q22 and than the 4.1% registered in 1Q22.
ASSETS & LIABILITIES PERFORMANCE (AR$) | MACRO Consolidated | |||||||||||||||||||||||||||||||||||||||||||||
In MILLION $ | 1Q22 | 2Q22 | 3Q22 | 4Q22 | 1Q23 | |||||||||||||||||||||||||||||||||||||||||
(Measuring Unit Current at EOP) | AVERAGE | REAL INT | NOMINAL | AVERAGE | REAL INT | NOMINAL | 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 | BALANCE | RATE | INT RATE | BALANCE | RATE | INT RATE | |||||||||||||||||||||||||||||||
Interest-earning assets | ||||||||||||||||||||||||||||||||||||||||||||||
Loans & Other Financing | ||||||||||||||||||||||||||||||||||||||||||||||
Public Sector | 5,087 | -12.2 | % | 45.0 | % | 4,011 | -14.6 | % | 44.7 | % | 3,914 | -23.5 | % | 43.2 | % | 3,219 | -11.1 | % | 49.9 | % | 2,658 | -15.5 | % | 59.0 | % | |||||||||||||||||||||
Financial Sector | 2,272 | -19.1 | % | 33.6 | % | 1,568 | -20.4 | % | 34.8 | % | 1,376 | -28.3 | % | 34.3 | % | 1,726 | -12.3 | % | 47.8 | % | 1,066 | -26.0 | % | 39.2 | % | |||||||||||||||||||||
Private Sector | 727,729 | -17.5 | % | 36.2 | % | 696,787 | -17.5 | % | 39.7 | % | 692,149 | -23.5 | % | 43.2 | % | 650,645 | -11.6 | % | 49.1 | % | 631,764 | -18.8 | % | 52.7 | % | |||||||||||||||||||||
Other debt securities | ||||||||||||||||||||||||||||||||||||||||||||||
Central Bank Securities (Leliqs) | 390,592 | -15.1 | % | 40.3 | % | 455,671 | -10.7 | % | 51.2 | % | 546,729 | -9.8 | % | 68.8 | % | 592,493 | 6.3 | % | 79.2 | % | 584,397 | -6.3 | % | 76.2 | % | |||||||||||||||||||||
Government & Private Securities | 296,519 | -13.2 | % | 43.3 | % | 298,170 | -13.0 | % | 47.4 | % | 150,207 | -24.0 | % | 42.2 | % | 199,837 | -5.5 | % | 59.3 | % | 175,437 | -16.1 | % | 57.8 | % | |||||||||||||||||||||
Repos | 10,380 | -18.6 | % | 34.5 | % | 12,927 | -18.7 | % | 37.8 | % | 36,951 | -14.6 | % | 59.8 | % | 48,235 | 0.8 | % | 69.9 | % | 38,306 | -9.0 | % | 71.2 | % | |||||||||||||||||||||
Total interest-earning assets | 1,432,579 | -16.0 | % | 38.8 | % | 1,469,134 | -14.5 | % | 44.8 | % | 1,431,326 | -18.1 | % | 53.3 | % | 1,496,155 | -3.3 | % | 63.0 | % | 1,433,628 | -13.1 | % | 63.4 | % | |||||||||||||||||||||
Fin. Assets through P&L and equity inv. | 76,812 | -26.3 | % | 21.8 | % | 93,796 | -41.2 | % | -0.4 | % | 186,564 | -51.3 | % | -8.9 | % | 45,684 | -71.5 | % | -52.0 | % | 22,593 | -35.4 | % | 21.5 | % | |||||||||||||||||||||
Other Non interest-earning assets | 174,087 | 163,915 | 76,436 | 146,446 | 144,804 | |||||||||||||||||||||||||||||||||||||||||
Total Non interest-earning assets | 250,899 | 257,711 | 263,000 | 192,130 | 167,397 | |||||||||||||||||||||||||||||||||||||||||
Total Average Assets | 1,683,478 | 1,726,845 | 1,694,326 | 1,688,285 | 1,601,025 | |||||||||||||||||||||||||||||||||||||||||
Interest-bearing liabilities | ||||||||||||||||||||||||||||||||||||||||||||||
Deposits | ||||||||||||||||||||||||||||||||||||||||||||||
Public Sector | 50,936 | -21.4 | % | 29.8 | % | 75,728 | -20.9 | % | 34.0 | % | 88,888 | -21.6 | % | 46.8 | % | 98,440 | -5.6 | % | 59.1 | % | 67,565 | -14.7 | % | 60.4 | % | |||||||||||||||||||||
Private Sector | 769,473 | -23.8 | % | 25.8 | % | 805,913 | -21.9 | % | 32.3 | % | 873,730 | -24.1 | % | 42.1 | % | 964,158 | -10.6 | % | 50.7 | % | 922,554 | -19.4 | % | 51.7 | % | |||||||||||||||||||||
BCRA and other financial institutions | 1,149 | -20.0 | % | 32.1 | % | 1,323 | -18.2 | % | 38.5 | % | 914 | -7.2 | % | 73.8 | % | 913 | 18.3 | % | 99.5 | % | 524 | 40.8 | % | 164.9 | % | |||||||||||||||||||||
Corporate bonds | 6,563 | -30.9 | % | 14.1 | % | 2,470 | -32.6 | % | 14.1 | % | 0 | 0.0 | % | 0.0 | % | 0 | 0.0 | % | 0.0 | % | 0 | 0.0 | % | 0.0 | % | |||||||||||||||||||||
Repos | 5,723 | -20.4 | % | 31.5 | % | 6,387 | -20.4 | % | 34.9 | % | 1,082 | -22.1 | % | 45.8 | % | 465 | -8.8 | % | 53.8 | % | 7,857 | -12.8 | % | 64.0 | % | |||||||||||||||||||||
Other financial liabilities | 5175 | -0.353 | 0.068 | 6068 | -0.322 | 0.149 | 4485 | -0.351 | 0.214 | 114383 | -0.399 | 0.014 | 121546 | -0.463 | 0.011 | |||||||||||||||||||||||||||||||
Total int.-bearing liabilities | 839,019 | -23.8 | % | 25.9 | % | 897,889 | -21.9 | % | 32.3 | % | 969,099 | -23.9 | % | 42.5 | % | 1,178,359 | -13.0 | % | 46.7 | % | 1,120,046 | -21.9 | % | 46.9 | % | |||||||||||||||||||||
Total non int.-bearing liabilities | 519,107 | 490,921 | 454,006 | 448,978 | 419,839 | |||||||||||||||||||||||||||||||||||||||||
Total Average Liabilities | 1,358,126 | 1,388,810 | 1,423,105 | 1,627,337 | 1,539,885 | |||||||||||||||||||||||||||||||||||||||||
Assets Performance | 137,056 | 164,088 | 192,274 | 237,679 | 224,133 | |||||||||||||||||||||||||||||||||||||||||
Liabilities Performance | 53,489 | 72,236 | 103,754 | 138,600 | 129,540 | |||||||||||||||||||||||||||||||||||||||||
Net Interest Income | 83,567 | 91,852 | 88,520 | 99,079 | 94,593 | |||||||||||||||||||||||||||||||||||||||||
Total interest-earning assets | 1,432,579 | 1,469,134 | 1,431,326 | 1,496,155 | 1,433,628 | |||||||||||||||||||||||||||||||||||||||||
Net Interest Margin (NIM) | 23.7 | % | 25.1 | % | 24.5 | % | 26.3 | % | 26.8 | % |
1Q23 Earnings Release |
ASSETS & LIABILITIES PERFORMANCE USD | MACRO Consolidated | |||||||||||||||||||||||||||||||||||||||||||||
In MILLION $ | 1Q22 | 2Q22 | 3Q22 | 4Q22 | 1Q23 | |||||||||||||||||||||||||||||||||||||||||
(Measuring Unit Current at EOP) | AVERAGE | REAL INT | NOMINAL | AVERAGE | REAL INT | NOMINAL | 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 | BALANCE | RATE | INT RATE | BALANCE | RATE | INT RATE | |||||||||||||||||||||||||||||||
Interest-earning assets | ||||||||||||||||||||||||||||||||||||||||||||||
Cash and Deposits in Banks | 99,334 | -19.8 | % | 0.0 | % | 96,535 | -10.5 | % | 0.1 | % | 93,421 | -8.6 | % | 0.6 | % | 93,535 | 8.3 | % | 1.3 | % | 91,844 | -5.9 | % | 2.4 | % | |||||||||||||||||||||
Loans & Other Financing | ||||||||||||||||||||||||||||||||||||||||||||||
Financial Sector | 0 | 0.0 | % | 0.0 | % | 58 | -4.4 | % | 6.9 | % | 0 | 0.0 | % | 0.0 | % | 38 | 18.0 | % | 10.4 | % | 170 | -1.5 | % | 7.2 | % | |||||||||||||||||||||
Private Sector | 35,033 | 12.1 | % | 39.8 | % | 34,521 | 21.1 | % | 35.5 | % | 38,120 | 21.7 | % | 34.0 | % | 40,180 | 45.1 | % | 35.7 | % | 44,960 | 21.2 | % | 31.8 | % | |||||||||||||||||||||
Other debt securities | ||||||||||||||||||||||||||||||||||||||||||||||
Central Bank | 0 | 0.0 | % | 0.0 | % | 0 | 0.0 | % | 0.0 | % | 5,463 | 0.0 | % | 0.0 | % | 46,442 | 0.0 | % | 0.0 | % | 37,049 | 0.0 | % | 0.0 | % | |||||||||||||||||||||
Government & Private Securities | 70,933 | -19.1 | % | 0.9 | % | 69,710 | -10.1 | % | 0.6 | % | 31,927 | -7.4 | % | 2.0 | % | 10,925 | 14.1 | % | 6.7 | % | 13,639 | 3.0 | % | 12.0 | % | |||||||||||||||||||||
Total interest-earning assets | 205,300 | -14.1 | % | 7.1 | % | 200,824 | -4.9 | % | 6.4 | % | 168,931 | -1.5 | % | 8.4 | % | 191,120 | 16.0 | % | 8.5 | % | 187,662 | 0.8 | % | 9.7 | % | |||||||||||||||||||||
Fin. Assets through P&L and equity inv. | 4,969 | 562.6 | % | 726.1 | % | 5,948 | 770.2 | % | 873.3 | % | 111,792 | 121.8 | % | 144.2 | % | 199,107 | 11.0 | % | 3.8 | % | 220,522 | 6.2 | % | 15.5 | % | |||||||||||||||||||||
Other Non interest-earning assets | 344,476 | 336,197 | 321,197 | 324,823 | 340,491 | |||||||||||||||||||||||||||||||||||||||||
Total Non interest earning assets | 349,445 | 342,145 | 432,989 | 523,930 | 561,013 | |||||||||||||||||||||||||||||||||||||||||
Total Average Assets | 554,745 | 542,969 | 601,920 | 715,050 | 748,675 | |||||||||||||||||||||||||||||||||||||||||
Interest-bearing liabilities | ||||||||||||||||||||||||||||||||||||||||||||||
Deposits | ||||||||||||||||||||||||||||||||||||||||||||||
Public Sector | 11,504 | -19.7 | % | 0.1 | % | 7,092 | -10.5 | % | 0.1 | % | 5,522 | -9.1 | % | 0.1 | % | 5,460 | 7.0 | % | 0.1 | % | 5,407 | -8.0 | % | 0.1 | % | |||||||||||||||||||||
Private Sector | 130,548 | -19.8 | % | 0.0 | % | 123,541 | -10.6 | % | 0.0 | % | 108,126 | -9.2 | % | 0.0 | % | 113,043 | 6.9 | % | 0.0 | % | 122,172 | -8.1 | % | 0.0 | % | |||||||||||||||||||||
BCRA and other financial institutions | 596 | -17.6 | % | 2.7 | % | 948 | -7.2 | % | 3.8 | % | 3,139 | -4.9 | % | 4.7 | % | 2,582 | 10.2 | % | 3.1 | % | 3,331 | -3.5 | % | 5.0 | % | |||||||||||||||||||||
Issued corporate bonds | 0 | 0.0 | % | 0.0 | % | 2,272 | -8.9 | % | 1.9 | % | 3,180 | -7.4 | % | 2.0 | % | 3,186 | 9.2 | % | 2.1 | % | 3,179 | -6.2 | % | 2.0 | % | |||||||||||||||||||||
Subordinated bonds | 94,793 | -14.7 | % | 6.3 | % | 88,202 | -4.9 | % | 6.4 | % | 84,368 | -3.4 | % | 6.4 | % | 84,508 | 13.9 | % | 6.5 | % | 84,383 | -2.1 | % | 6.5 | % | |||||||||||||||||||||
Total int.-bearing liabilities | 237,441 | -17.7 | % | 2.6 | % | 222,055 | -8.3 | % | 2.6 | % | 204,335 | -6.6 | % | 2.8 | % | 208,779 | 9.8 | % | 2.7 | % | 218,472 | -5.7 | % | 2.6 | % | |||||||||||||||||||||
Total non int.-bearing liabilities | 93,540 | 93,886 | 97,719 | 93,219 | 106,059 | |||||||||||||||||||||||||||||||||||||||||
Total Average liabilities | 330,981 | 315,941 | 302,054 | 301,998 | 324,531 | |||||||||||||||||||||||||||||||||||||||||
Assets Performance | 3,597 | 3,189 | 3,568 | 4,118 | 4,485 | |||||||||||||||||||||||||||||||||||||||||
Liabilities Performance | 1,506 | 1,441 | 1,437 | 1,426 | 1,416 | |||||||||||||||||||||||||||||||||||||||||
Net Interest Income | 2,091 | 1,748 | 2,131 | 2,692 | 3,069 | |||||||||||||||||||||||||||||||||||||||||
Total interest-earning assets | 205,300 | 200,824 | 168,931 | 191,120 | 187,662 | |||||||||||||||||||||||||||||||||||||||||
Net Interest Margin (NIM) | 4.1 | % | 3.5 | % | 5.0 | % | 5.6 | % | 6.6 | % |
In 1Q23 Banco Macro’s net fee income totaled Ps.22 billion, 6% or Ps.1.3 billion higher than in 4Q22 and was 6% or Ps.1.2 billion higher than the same period of last year.
In the quarter, fee income totaled Ps.24.3 billion, 5% or Ps.1.2 billion higher than in 4Q22. Credit card fees ,corporate services fees and fees charged on deposits accounts stood out with 17% (Ps.787 million), 11% (Ps.346 million) and 4% (Ps.343 million) increases respectively which were partially offset by a 15% decrease in debit card fees. On a yearly basis, fee income increased 5% or Ps.1.3 billion.
In the quarter, total fee expense decreased 2% or Ps.53 million. On a yearly basis, fee expenses increased 5% or Ps.100 million.
NET FEE INCOME | MACRO Consolidated | Change | ||||||||||||||||||||||||||
In MILLION $ (Measuring Unit Current at EOP) | 1Q22 | 2Q22 | 3Q22 | 4Q22 | 1Q23 | QoQ | YoY | |||||||||||||||||||||
Fees charged on deposit accounts | 8,810 | 8,576 | 8,450 | 8,653 | 8,996 | 4 | % | 2 | % | |||||||||||||||||||
Credit card fees | 4,236 | 4,138 | 4,212 | 4,520 | 5,307 | 17 | % | 25 | % | |||||||||||||||||||
Corporate services fees | 2,911 | 3,082 | 3,244 | 3,177 | 3,523 | 11 | % | 21 | % | |||||||||||||||||||
ATM transactions fees | 1,991 | 2,032 | 1,908 | 1,736 | 1,646 | -5 | % | -17 | % | |||||||||||||||||||
Insurance fees | 1,536 | 1,491 | 1,468 | 1,297 | 1,101 | -15 | % | -28 | % | |||||||||||||||||||
Debit card fees | 1,334 | 1,372 | 1,202 | 1,237 | 1,309 | 6 | % | -2 | % | |||||||||||||||||||
Financial agent fees (Provinces) | 1,188 | 1,323 | 1,245 | 1,312 | 1,193 | -9 | % | 0 | % | |||||||||||||||||||
Credit related fees | 484 | 578 | 505 | 623 | 570 | -9 | % | 18 | % | |||||||||||||||||||
Mutual funds & securities fees | 438 | 358 | 293 | 449 | 575 | 28 | % | 31 | % | |||||||||||||||||||
AFIP & Collection services | 74 | 75 | 70 | 64 | 58 | -9 | % | -22 | % | |||||||||||||||||||
ANSES fees | 28 | 29 | 21 | 19 | 14 | -26 | % | -50 | % | |||||||||||||||||||
Total fee income | 23,030 | 23,054 | 22,618 | 23,087 | 24,292 | 5 | % | 5 | % | |||||||||||||||||||
Total fee expense | 2,160 | 2,269 | 2,283 | 2,313 | 2,260 | -2 | % | 5 | % | |||||||||||||||||||
Net fee income | 20,870 | 20,785 | 20,335 | 20,774 | 22,032 | 6 | % | 6 | % |
1Q23 Earnings Release |
In 1Q23 Net Income from financial assets and liabilities at fair value through profit or loss totaled a Ps.9.2 billion gain, mainly due to the mark to market of some government securities. On a yearly basis Net Income from financial assets and liabilities at fair value through profit or loss decreased 29% or Ps.3.8 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) | 1Q22 | 2Q22 | 3Q22 | 4Q22 | 1Q23 | QoQ | YoY | |||||||||||||||||||||
Profit or loss from government securities | 2,865 | 5,041 | 26,020 | -11,595 | 12,908 | 0 | % | 351 | % | |||||||||||||||||||
Profit or loss from private securities | 308 | 7,097 | 10,064 | 6,561 | -3,055 | - | - | |||||||||||||||||||||
Profit or loss from investment in derivative financing instruments | 0 | 12 | 150 | 754 | 194 | -74 | % | - | ||||||||||||||||||||
Profit or loss from other financial assets | -5 | -8 | -49 | 30 | 17 | -43 | % | - | ||||||||||||||||||||
Profit or loss from investment in equity instruments | 7,806 | 462 | -116 | 62 | 51 | -18 | % | -99 | % | |||||||||||||||||||
Profit or loss from the sale of financial assets at fair value | 2,055 | 256 | 385 | 90 | -503 | - | - | |||||||||||||||||||||
Income from financial assets at fair value through profit or loss | 13,029 | 12,860 | 36,454 | -4,098 | 9,612 | - | -26 | % | ||||||||||||||||||||
Profit or loss from derivative financing instruments | - | - | - | - | -417 | - | - | |||||||||||||||||||||
Income from financial liabilities at fair value through profit or loss | - | - | - | - | -417 | - | - | |||||||||||||||||||||
NET INCOME FROM FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS | 13,029 | 12,860 | 36,454 | -4,098 | 9,195 | - | -29 | % |
In the quarter, Other Operating Income totaled Ps.5.7 billion, 18% or Ps.1.3 billion lower than in 4Q22. On a yearly basis, Other Operating Income decreased 16% or Ps.1.1 billion.
OTHER OPERATING INCOME | MACRO Consolidated | Change | ||||||||||||||||||||||||||
In MILLION $ (Measuring Unit Current at EOP) | 1Q22 | 2Q22 | 3Q22 | 4Q22 | 1Q23 | QoQ | YoY | |||||||||||||||||||||
Credit and debit cards | 371 | 397 | 417 | 1,021 | 635 | -38 | % | 71 | % | |||||||||||||||||||
Lease of safe deposit boxes | 703 | 662 | 622 | 622 | 699 | 12 | % | -1 | % | |||||||||||||||||||
Other service related fees | 1,671 | 1,570 | 1,600 | 2,042 | 1,775 | -13 | % | 6 | % | |||||||||||||||||||
Other adjustments and interest from other receivables | 876 | 1,088 | 1,386 | 1,591 | 1,469 | -8 | % | 68 | % | |||||||||||||||||||
Initial recognition of loans | 872 | -728 | -144 | 0 | 0 | - | - | |||||||||||||||||||||
Sale of property, plant and equipment | 0 | 0 | 0 | 43 | 6 | -86 | % | - | ||||||||||||||||||||
Others | 2,253 | 3,654 | 1,469 | 1,721 | 1,132 | -34 | % | -50 | % | |||||||||||||||||||
Other Operating Income | 6,772 | 6,648 | 5,348 | 7,011 | 5,716 | -18 | % | -16 | % |
In 1Q23 Banco Macro’s administrative expenses plus employee benefits totaled Ps.35.1 billion, 1% or Ps.424 million lower than the previous quarter, due to lower administrative expenses (8%) which was offset by a 3% or Ps.594 million increase in employee benefits. On a yearly basis, administrative expenses plus employee benefits increased 12% or Ps.3.8 billion.
Employee benefits increased 3% or Ps.594 million QoQ, remunerations and social security contributions decreased 1% and 5% respectively while Compensation and bonuses increased 49% or Ps.938 million. On a yearly basis, Employee benefits increased 17% or Ps.3.4 billion.
In 1Q23, administrative expenses decreased 8% or Ps.1 billion, due to lower Directors and auditors fees (50%) lower advertising and publicity fees (39%) and lower maintenance and conservation fees (11%).
In 1Q23, the efficiency ratio reached 25.5%, improving from the 28.6% posted in 4Q22 and much better than the 29.6% posted a year ago. In 1Q23 expenses (employee benefits + G&A expenses + depreciation and impairment of assets) decreased 1%, 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)) increased 6% compared to 4Q22.
1Q23 Earnings Release |
PERSONNEL & ADMINISTRATIVE EXPENSES | MACRO Consolidated | Change | ||||||||||||||||||||||||||
In MILLION $ (Measuring Unit Current at EOP) | 1Q22 | 2Q22 | 3Q22 | 4Q22 | 1Q23 | QoQ | YoY | |||||||||||||||||||||
Employee benefits | 20,044 | 26,384 | 25,209 | 22,874 | 23,468 | 3 | % | 17 | % | |||||||||||||||||||
Remunerations | 13,626 | 18,515 | 17,136 | 15,947 | 15,819 | -1 | % | 16 | % | |||||||||||||||||||
Social Security Contributions | 3,142 | 4,357 | 4,359 | 4,236 | 4,023 | -5 | % | 28 | % | |||||||||||||||||||
Compensation and bonuses | 2,503 | 2,606 | 2,869 | 1,901 | 2,839 | 49 | % | 13 | % | |||||||||||||||||||
Employee services | 773 | 906 | 845 | 790 | 787 | 0 | % | 2 | % | |||||||||||||||||||
Administrative Expenses | 11,265 | 11,888 | 11,844 | 12,668 | 11,650 | -8 | % | 3 | % | |||||||||||||||||||
Taxes | 1,763 | 1,996 | 2,047 | 2,004 | 1,978 | -1 | % | 12 | % | |||||||||||||||||||
Maintenance, conservation fees | 1,818 | 1,866 | 1,872 | 2,036 | 1,804 | -11 | % | -1 | % | |||||||||||||||||||
Directors & statutory auditors fees | 564 | 385 | 522 | 933 | 470 | -50 | % | -17 | % | |||||||||||||||||||
Security services | 1,168 | 1,127 | 1,136 | 1,149 | 1,114 | -3 | % | -5 | % | |||||||||||||||||||
Electricity & Communications | 1,113 | 1,043 | 1,068 | 995 | 1,065 | 7 | % | -4 | % | |||||||||||||||||||
Other professional fees | 1,039 | 1,065 | 1,095 | 1,401 | 1,262 | -10 | % | 21 | % | |||||||||||||||||||
Rental agreements | 57 | 58 | 48 | 49 | 46 | -6 | % | -19 | % | |||||||||||||||||||
Advertising & publicity | 519 | 976 | 622 | 774 | 476 | -39 | % | -8 | % | |||||||||||||||||||
Personnel allowances | 136 | 183 | 235 | 278 | 240 | -14 | % | 76 | % | |||||||||||||||||||
Stationary & Office Supplies | 78 | 81 | 77 | 94 | 104 | 11 | % | 33 | % | |||||||||||||||||||
Insurance | 135 | 120 | 132 | 115 | 97 | -16 | % | -28 | % | |||||||||||||||||||
Hired administrative services | 78 | 71 | 91 | 85 | 83 | -2 | % | 6 | % | |||||||||||||||||||
Other | 2,797 | 2,917 | 2,899 | 2,755 | 2,911 | 6 | % | 4 | % | |||||||||||||||||||
Total Administrative Expenses | 31,309 | 38,272 | 37,053 | 35,542 | 35,118 | -1 | % | 12 | % | |||||||||||||||||||
Total Employees | 7,982 | 7,925 | 7,857 | 7,796 | 7,756 | |||||||||||||||||||||||
Branches | 466 | 466 | 466 | 467 | 463 | |||||||||||||||||||||||
Efficiency ratio | 29.6 | % | 32.7 | % | 25.8 | % | 27.2 | % | 25.5 | % | ||||||||||||||||||
Accumulated efficiency ratio | 29.6 | % | 31.2 | % | 29.1 | % | 28.6 | % | 25.5 | % |
In 1Q23, Other Operating Expenses totaled Ps.23.8 billion, decreasing 2% or Ps.488 million QoQ, due to lower other expenses (|9% or Ps.1.8 billion) which was partially offset by a Ps.1 billion increase in other provision charges. On a yearly basis, Other Operating Expenses increased 15% or Ps.3.2 million.
OTHER OPERATING EXPENSES | MACRO Consolidated | Change | ||||||||||||||||||||||||||
In MILLION $ (Measuring Unit Current at EOP) | 1Q22 | 2Q22 | 3Q22 | 4Q22 | 1Q23 | QoQ | YoY | |||||||||||||||||||||
Turnover Tax | 11,340 | 11,551 | 13,451 | 13,974 | 13,994 | 0 | % | 23 | % | |||||||||||||||||||
Other provision charges | 874 | 922 | 1,455 | -350 | 662 | - | -24 | % | ||||||||||||||||||||
Deposit Guarantee Fund Contributions | 561 | 562 | 582 | 624 | 606 | -3 | % | 8 | % | |||||||||||||||||||
Donations | 256 | 23 | 199 | 34 | 206 | 506 | % | -20 | % | |||||||||||||||||||
Insurance claims | 110 | 101 | 139 | 181 | 230 | 27 | % | 109 | % | |||||||||||||||||||
Initial loan recognition | 0 | 0 | 549 | 139 | 218 | 57 | % | 100 | % | |||||||||||||||||||
Others | 7,539 | 8,462 | 8,292 | 9,721 | 7,919 | -19 | % | 5 | % | |||||||||||||||||||
Other Operating Expenses | 20,680 | 21,621 | 24,667 | 24,323 | 23,835 | -2 | % | 15 | % |
In 1Q23, the result from the net monetary position totaled a Ps.88.4 billion loss, 27% or Ps.19 billion higher than the loss posted in 4Q22 and 50% or Ps.29 billion higher than the loss posted one year ago. Higher inflation was observed during the quarter (444 b.p. above 4Q22 level, up to 21.73% from 17.29% in 4Q22).
In 1Q23, Banco Macro's effective income tax rate 36.3%. For more information, please see Note 22 “Income Tax” of our Financial Statements.
1Q23 Earnings Release |
OPERATING RESULT | MACRO consolidated | Change | ||||||||||||||||||||||||||
In MILLION $ (Measuring Unit Current at EOP) | 1Q22 | 2Q22 | 3Q22 | 4Q22 | 1Q23 | QoQ | YoY | |||||||||||||||||||||
Operating Result (exc. Loss from net monetary position) | 74,643 | 77,422 | 107,229 | 95,173 | 103,952 | 9 | % | 39 | % | |||||||||||||||||||
Result from net monetary position (i.e. inflation adjustment) | -59,077 | -66,526 | -83,293 | -69,351 | -88,387 | 27 | % | 50 | % | |||||||||||||||||||
Operating Result (Inc. Loss from net monetary position) | 15,566 | 10,896 | 23,936 | 25,822 | 15,565 | -40 | % | 0 | % |
Financial Assets
Loans and other financing
The volume of “core” financing to the private sector (including loans, financial trust and leasing portfolio) totaled Ps.694.5 billion, decreasing 4% or Ps.30.4 billion QoQ and 8% or Ps.63.5 billion YoY.
Within commercial loans, Overdrafts and Others stand out with a 10% or Ps.6.1 billion decrease and an 11% or Ps.9.3 billion increase respectively.
Within consumer lending, personal loans decreased 7% or Ps.12.7 billion while credit card loans decreased 7% or Ps.16.1 billion.
Within private sector financing, peso financing decreased 6% or Ps.39.2 billion, while US dollar financing increased 1% or USD 2 million.
As of 1Q23, Banco Macro’s market share over private sector loans was 7.3%.
LOANS AND OTHER FINANCING | MACRO Consilidated | Change | ||||||||||||||||||||||||||
In MILLION $ (Measuring Unit Current at EOP) | 1Q22 | 2Q22 | 3Q22 | 4Q22 | 1Q23 | QoQ | YoY | |||||||||||||||||||||
Public Sector | 4,270 | 5,647 | 2,541 | 2,687 | 1,410 | -48 | % | -67 | % | |||||||||||||||||||
Finacial Sector | 1,448 | 1,277 | 1,340 | 1,129 | 1,857 | 64 | % | 28 | % | |||||||||||||||||||
Financial Sector | 1,454 | 1,282 | 1,345 | 1,139 | 1,869 | 64 | % | 29 | % | |||||||||||||||||||
Less: Expected Credit Losses | -6 | -5 | -5 | -10 | -12 | 20 | % | 100 | % | |||||||||||||||||||
Private Sector | 758,068 | 775,959 | 721,922 | 724,875 | 694,519 | -4 | % | -8 | % | |||||||||||||||||||
Overdrafts | 56,761 | 71,561 | 60,742 | 59,953 | 53,796 | -10 | % | -5 | % | |||||||||||||||||||
Discounted documents | 82,276 | 88,498 | 96,935 | 99,545 | 100,434 | 1 | % | 22 | % | |||||||||||||||||||
Mortgage loans | 89,807 | 82,147 | 75,501 | 75,360 | 71,414 | -5 | % | -20 | % | |||||||||||||||||||
Pledged loans | 15,769 | 14,538 | 11,875 | 11,664 | 10,969 | -6 | % | -30 | % | |||||||||||||||||||
Personal loans | 224,129 | 210,782 | 186,533 | 173,505 | 160,793 | -7 | % | -28 | % | |||||||||||||||||||
Credit Card loans | 221,166 | 233,722 | 220,041 | 232,240 | 216,178 | -7 | % | -2 | % | |||||||||||||||||||
Leasing | 1,099 | 1,109 | 1,531 | 1,688 | 1,345 | -20 | % | 22 | % | |||||||||||||||||||
Others | 87,250 | 88,804 | 82,276 | 84,303 | 93,599 | 11 | % | 7 | % | |||||||||||||||||||
Less: Expected Credit Losses | -20,189 | -15,202 | -13,512 | -13,383 | -14,009 | 5 | % | -31 | % | |||||||||||||||||||
Total loans and other financing | 763,786 | 782,883 | 725,803 | 728,691 | 697,786 | -4 | % | -9 | % | |||||||||||||||||||
Total loans in Pesos | 729,806 | 740,057 | 688,551 | 684,940 | 645,756 | -6 | % | -12 | % | |||||||||||||||||||
Total loans in foreign currency | 33,980 | 42,826 | 37,252 | 43,751 | 52,030 | 19 | % | 53 | % | |||||||||||||||||||
EOP FX (Pesos per USD) | 110.9783 | 125.2150 | 147.3150 | 177.1283 | 208.9883 | 18 | % | 88 | % | |||||||||||||||||||
USD financing / Financing to the private sector | 4 | % | 5 | % | 5 | % | 6 | % | 7 | % |
1Q23 Earnings Release |
Public Sector Assets
In 1Q23, the Bank’s public sector assets (excluding LELIQs) to total assets ratio was 17%, lower than the 18.5% registered in the previous quarter, and lower than the 22.1% posted in 1Q22.
In 1Q23, a 12% or Ps.55.9 billion decrease in Other government securities stand out while Central Bank Notes decreased Ps.14.7 billion. Leliqs increased 8% or Ps.45.6 billion in the quarter.
PUBLIC SECTOR ASSETS | MACRO Consolidated | Change | ||||||||||||||||||||||||||
In MILLION $ (Measuring Unit Current at EOP) | 1Q22 | 2Q22 | 3Q22 | 4Q22 | 1Q23 | QoQ | YoY | |||||||||||||||||||||
Central Bank Notes | - | 37,643 | 50,444 | 14,737 | - | -100 | % | - | ||||||||||||||||||||
Leliqs | 432,922 | 489,748 | 596,431 | 598,341 | 643,899 | 8 | % | 49 | % | |||||||||||||||||||
Other | 511,671 | 450,105 | 446,494 | 468,641 | 412,726 | -12 | % | -19 | % | |||||||||||||||||||
Government securities | 944,593 | 977,496 | 1,093,369 | 1,081,719 | 1,056,625 | -2 | % | 12 | % | |||||||||||||||||||
Provincial loans | 3,718 | 5,035 | 2,043 | 2,096 | 935 | -55 | % | -75 | % | |||||||||||||||||||
Loans | 3,718 | 5,035 | 2,043 | 2,096 | 935 | -55 | % | -75 | % | |||||||||||||||||||
TOTAL PUBLIC SECTOR ASSETS | 948,311 | 982,531 | 1,095,412 | 1,083,815 | 1,057,560 | -2 | % | 12 | % | |||||||||||||||||||
TOTAL PUBLIC SECTOR ASSETS (net of LEBAC/NOBAC/LELIQ) | 515,389 | 455,140 | 448,537 | 470,737 | 413,661 | -12 | % | -20 | % | |||||||||||||||||||
TOTAL PUBLIC SECTOR ASSETS (net of LEBAC/NOBAC/LELIQ)/TOTAL ASSETS | 22.1 | % | 19.0 | % | 17.8 | % | 18.5 | % | 17.0 | % |
Funding
Deposits
Banco Macro’s deposit base totaled Ps.1.5 trillion in 1Q23, decreasing 7% or Ps.112.6 billion QoQ and a 6% or Ps.80.1 billion increase YoY and representing 81% of the Bank’s total liabilities.
On a quarterly basis private sector deposits decreased 6% or Ps.89.7 billion while public sector deposits decreased 17% or Ps.22.8 billion.
The decrease in private sector deposits was led demand deposits, which increased 13% or Ps.83.4 billion, while time deposits increased 4% or Ps.27 billion QoQ.
Within private sector deposits, peso deposits decreased 8% or Ps.109.1 billion, while US dollar deposits decreased 17% or USD 196 million.
As of 1Q23, Banco Macro´s market share over private sector deposits was 6.1%.
1Q23 Earnings Release |
DEPOSITS | MACRO Consolidated | Change | ||||||||||||||||||||||||||
In MILLION $ (Measuring Unit Current at EOP) | 1Q22 | 2Q22 | 3Q22 | 4Q22 | 1Q23 | QoQ | YoY | |||||||||||||||||||||
Public sector | 161,097 | 145,911 | 192,434 | 133,847 | 111,060 | -17 | % | -31 | % | |||||||||||||||||||
Financial sector | 2,112 | 2,131 | 1,818 | 2,013 | 1,911 | -5 | % | -10 | % | |||||||||||||||||||
Private sector | 1,220,991 | 1,346,538 | 1,411,233 | 1,441,055 | 1,351,367 | -6 | % | 11 | % | |||||||||||||||||||
Checking accounts | 223,148 | 231,770 | 212,876 | 193,705 | 167,488 | -14 | % | -25 | % | |||||||||||||||||||
Savings accounts | 383,530 | 411,010 | 399,406 | 452,114 | 394,938 | -13 | % | 3 | % | |||||||||||||||||||
Time deposits | 586,035 | 672,716 | 721,961 | 710,957 | 737,998 | 4 | % | 26 | % | |||||||||||||||||||
Other | 28,278 | 31,042 | 76,990 | 84,279 | 50,943 | -40 | % | 80 | % | |||||||||||||||||||
Total | 1,384,200 | 1,494,580 | 1,605,485 | 1,576,915 | 1,464,338 | -7 | % | 6 | % | |||||||||||||||||||
Pesos | 1,176,017 | 1,284,820 | 1,419,482 | 1,368,727 | 1,259,640 | -8 | % | 7 | % | |||||||||||||||||||
Foreign Currency (Pesos) | 208,183 | 209,760 | 186,003 | 208,188 | 204,698 | -2 | % | -2 | % | |||||||||||||||||||
EOP FX (Pesos per USD) | 110.9783 | 125.2150 | 147.3150 | 177.1283 | 208.9883 | 18 | % | 88 | % | |||||||||||||||||||
Foreign Currency (USD) | 1,876 | 1,675 | 1,263 | 1,175 | 979 | -17 | % | -48 | % | |||||||||||||||||||
USD Deposits / Total Deposits | 15 | % | 14 | % | 12 | % | 13 | % | 14 | % |
Banco Macro’s transactional deposits represent approximately 42% of its total deposit base as of 1Q23. These accounts are low cost and are not sensitive to interest rate increases.
Other sources of funds
In 1Q23, the total amount of other sources of funds increased 1% or Ps.9 billion compared to 4Q22 mainly due to a 1% or Ps.8.9 increase in Shareholders’ equity (due to the positive net income registered during the period). On a yearly basis, other sources of funds increased 7% or Ps.45.6 billion.
OTHER SOURCES OF FUNDS | MACRO Consolidated | Change | ||||||||||||||||||||||||||
In MILLION $ (Measuring Unit Current at EOP) | 1Q22 | 2Q22 | 3Q22 | 4Q22 | 1Q23 | QoQ | YoY | |||||||||||||||||||||
Central Bank of Argentina | 45 | 57 | 44 | 57 | 49 | -14 | % | 9 | % | |||||||||||||||||||
Banks and international institutions | 328 | 3,353 | 2,502 | 2,900 | 4,419 | 52 | % | 1247 | % | |||||||||||||||||||
Financing received from Argentine financial institutions | 3,730 | 730 | 927 | 25 | 39 | 56 | % | -99 | % | |||||||||||||||||||
Subordinated corporate bonds | 94,034 | 88,880 | 87,089 | 87,805 | 86,394 | -2 | % | -8 | % | |||||||||||||||||||
Corporate bonds | 6,325 | 3,317 | 3,291 | 3,306 | 3,286 | -1 | % | -48 | % | |||||||||||||||||||
Shareholders' equity | 576,786 | 590,970 | 606,597 | 623,769 | 632,701 | 1 | % | 10 | % | |||||||||||||||||||
Total other source of funds | 681,248 | 687,307 | 700,450 | 717,862 | 726,888 | 1 | % | 7 | % |
1Q23 Earnings Release |
Liquid Assets
In 1Q23, the Bank’s liquid assets amounted to Ps.1.4 trillion, showing a 4% or Ps.63.7 billion decrease QoQ, and a 10% or Ps.124.7 billion increase on a yearly basis.
In 1Q23, Leliqs increased 7% or Ps.42.2 billion. Other government & private securities and Repos decreased 12% or Ps.55.9 billion and 52% or Ps.39.3 billion respectively.
In 1Q23, Banco Macro’s liquid assets to total deposits ratio reached 97%.
LIQUID ASSETS | MACRO Consolidated | Change | ||||||||||||||||||||||||||
In MILLION $ (Measuring Unit Current at EOP) | 1Q22 | 2Q22 | 3Q22 | 4Q22 | 1Q23 | QoQ | YoY | |||||||||||||||||||||
Cash | 358,603 | 316,456 | 287,082 | 304,439 | 297,609 | -2 | % | -17 | % | |||||||||||||||||||
Guarantees for compensating chambers | 32,687 | 29,743 | 32,635 | 30,220 | 25,643 | -15 | % | -22 | % | |||||||||||||||||||
Call | - | - | - | - | 600 | - | - | |||||||||||||||||||||
Leliq own portfolio | 409,842 | 489,748 | 596,431 | 598,341 | 640,580 | 7 | % | 56 | % | |||||||||||||||||||
Net Repos | -24,217 | 53,914 | 88,711 | 75,388 | 36,124 | -52 | % | - | ||||||||||||||||||||
Other government & private securities | 511,671 | 450,105 | 446,494 | 468,641 | 412,726 | -12 | % | -19 | % | |||||||||||||||||||
Total | 1,288,586 | 1,339,966 | 1,451,353 | 1,477,029 | 1,413,282 | -4 | % | 10 | % | |||||||||||||||||||
Liquid assets to total deposits | 93 | % | 90 | % | 90 | % | 94 | % | 97 | % |
Solvency
Banco Macro continued showing high solvency levels in 1Q22 with an integrated capital (RPC) of Ps.643.6 billion over a total capital requirement of Ps.123.3 billion. Banco Macro’s excess capital in 1Q23 was 421% or Ps.520 billion.
The regulatory capital ratio (as a percentage of risk-weighted assets- RWA) was 42.4% in 4Q22; TIER1 Ratio stood at 39.1%.
The Bank’s aim is to make the best use of this excess capital.
MINIMUM CAPITAL REQUIREMENT | MACRO Consolidated | Change | ||||||||||||||||||||||||||
In MILLION $ | 1Q22 | 2Q22 | 3Q22 | 4Q22 | 1Q23 | QoQ | YoY | |||||||||||||||||||||
Credit risk requirement | 40,488 | 45,204 | 52,233 | 60,581 | 73,119 | 21 | % | 81 | % | |||||||||||||||||||
Market risk requirement | 3,886 | 4,643 | 9,998 | 11,709 | 11,531 | -2 | % | 197 | % | |||||||||||||||||||
Operational risk requirement | 19,206 | 21,817 | 26,568 | 32,771 | 38,935 | 19 | % | 103 | % | |||||||||||||||||||
Total capital requirements | 63,581 | 71,664 | 88,800 | 105,061 | 123,585 | 18 | % | 94 | % | |||||||||||||||||||
Ordinary Capital Level 1 (COn1) | 279,447 | 336,826 | 418,322 | 500,504 | 627,056 | 25 | % | 124 | % | |||||||||||||||||||
Deductible concepts Level 1 (COn1) | -16,866 | -21,154 | -24,630 | -27,620 | -33,553 | 21 | % | 99 | % | |||||||||||||||||||
Capital Level 2 (COn2) | 37,615 | 40,243 | 47,051 | 42,447 | 50,063 | 18 | % | 33 | % | |||||||||||||||||||
Integrated capital - RPC (i) | 300,196 | 355,914 | 440,743 | 515,330 | 643,566 | 25 | % | 114 | % | |||||||||||||||||||
Excess capital | 236,615 | 284,250 | 351,943 | 410,269 | 519,981 | 27 | % | 120 | % | |||||||||||||||||||
Risk-weighted assets - RWA (ii) | 780,016 | 879,341 | 1,090,977 | 1,291,206 | 1,518,189 | 18 | % | 95 | % | |||||||||||||||||||
Regulatory Capital ratio [(i)/(ii)] | 38.5 | % | 40.5 | % | 40.4 | % | 39.9 | % | 42.4 | % | ||||||||||||||||||
Ratio TIER 1 [Capital Level 1/RWA] | 33.7 | % | 35.9 | % | 36.1 | % | 36.6 | % | 39.1 | % |
RWA - (ii): Risk Weighted Assets, considering total capital requirements.
1Q23 Earnings Release |
Asset Quality
In 1Q22, Banco Macro’s non-performing to total financing ratio (under Central Bank rules) reached a level of 1.41%, up from 1.25% in 4Q22, and lower than the 1.65% posted in 1Q22.
Consumer portfolio non-performing loans deteriorated 24b.p. (up to 1.34% from 1.1%) while Commercial portfolio non-performing loans improved 22 b.p. in 1Q23 (down to 1.73% from 1.95%).
The coverage ratio (measured as total allowances under Expected Credit Losses over Non Performing loans under Central Bank rules) remained stable at to 145.33% in 1Q23. Write-offs over total loans totaled 0.06%.
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) | 1Q22 | 2Q22 | 3Q22 | 4Q22 | 1Q23 | QoQ | YoY | ||||||||||||||
Commercial portfolio | 165,736 | 170,244 | 148,077 | 137,663 | 137,140 | 0 | % | -17 | % | ||||||||||||
Non-performing | 4,584 | 2,173 | 2,113 | 2,687 | 2,373 | -12 | % | -48 | % | ||||||||||||
Consumer portfolio | 621,950 | 639,844 | 603,999 | 616,850 | 590,651 | -4 | % | -5 | % | ||||||||||||
Non-performing | 8,374 | 7,950 | 7,459 | 6,761 | 7,913 | 17 | % | -6 | % | ||||||||||||
Total portfolio | 787,686 | 810,088 | 752,076 | 754,513 | 727,791 | -4 | % | -8 | % | ||||||||||||
Non-performing | 12,958 | 10,123 | 9,572 | 9,448 | 10,285 | 9 | % | -21 | % | ||||||||||||
Commercial non-perfoming ratio | 2.77 | % | 1.28 | % | 1.43 | % | 1.95 | % | 1.73 | % | |||||||||||
Consumer non-perfoming ratio | 1.35 | % | 1.24 | % | 1.23 | % | 1.10 | % | 1.34 | % | |||||||||||
Total non-performing/ Total portfolio | 1.65 | % | 1.25 | % | 1.27 | % | 1.25 | % | 1.41 | % | |||||||||||
Total allowances | 21,140 | 16,167 | 14,658 | 14,332 | 14,948 | 4 | % | -29 | % | ||||||||||||
Coverage ratio w/allowances | 163.14 | % | 159.71 | % | 153.13 | % | 151.69 | % | 145.33 | % | |||||||||||
Write Offs | 1,156 | 960 | 1,040 | 776 | 458 | -41 | % | -60 | % | ||||||||||||
Write Offs/ Total portfolio | 0.15 | % | 0.12 | % | 0.14 | % | 0.10 | % | 0.06 | % |
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 2022 20-F)
1Q23 Earnings Release |
CER Exposure and Foreign Currency Position
CER EXPOSURE | MACRO Consolidated | Change | |||||||||||||||||||
In MILLION $ (Measuring Unit Current at EOP) | 1Q22 | 2Q22 | 3Q22 | 4Q22 | 1Q23 | QoQ | YoY | ||||||||||||||
CER adjustable ASSETS | |||||||||||||||||||||
Government Securities | 340,908 | 325,331 | 226,174 | 167,960 | 34,726 | -79 | % | -90 | % | ||||||||||||
Loans (*) | 58,093 | 57,621 | 54,858 | 54,883 | 52,816 | -4 | % | -9 | % | ||||||||||||
Private sector loans | 14,044 | 12,201 | 10,081 | 8,915 | 8,099 | -9 | % | -42 | % | ||||||||||||
Mortgage loans (UVA adjusted) | 44,005 | 45,378 | 44,737 | 45,935 | 44,673 | -3 | % | 2 | % | ||||||||||||
Other loans | 44 | 42 | 40 | 33 | 44 | 33 | % | 0 | % | ||||||||||||
Total CER adjustable assets | 399,001 | 382,952 | 281,032 | 222,843 | 87,542 | -61 | % | -78 | % | ||||||||||||
CER adjustable LIABILITIES | |||||||||||||||||||||
Deposits (*) | 21,042 | 28,283 | 23,035 | 14,930 | 8,403 | -44 | % | -60 | % | ||||||||||||
UVA Unemployment fund | 3,924 | 4,497 | 4,934 | 5,313 | 5,563 | 5 | % | 42 | % | ||||||||||||
Total CER adjustable liabilities | 24,966 | 32,780 | 27,969 | 20,243 | 13,966 | -31 | % | -44 | % | ||||||||||||
NET CER EXPOSURE | 374,035 | 350,172 | 253,063 | 202,600 | 73,576 | -64 | % | -80 | % | ||||||||||||
(*) Includes Loans &Time Deposits CER adjustable (UVAs) |
FOREIGN CURRENCY POSITION | MACRO Consolidated | Change | |||||||||||||||||||
In MILLION $ (Measuring Unit Current at EOP) | 1Q22 | 2Q22 | 3Q22 | 4Q22 | 1Q23 | QoQ | YoY | ||||||||||||||
Cash and deposits in Banks | 267,167 | 259,218 | 238,425 | 256,409 | 241,283 | -6 | % | -10 | % | ||||||||||||
Cash | 36,111 | 23,896 | 22,029 | 6,649 | 8,387 | 26 | % | -77 | % | ||||||||||||
Central Bank of Argentina | 135,165 | 139,779 | 120,266 | 153,659 | 151,874 | -1 | % | 12 | % | ||||||||||||
Other financial institutions local and abroad | 95,763 | 95,368 | 96,116 | 96,087 | 81,008 | -16 | % | -15 | % | ||||||||||||
Others | 128 | 175 | 14 | 14 | 14 | 0 | % | -89 | % | ||||||||||||
Financial instruments at fair value through P&L | 4,399 | 8,497 | 209,323 | 216,606 | 278,146 | 28 | % | 6223 | % | ||||||||||||
Other financial assets | 17,578 | 17,130 | 16,752 | 19,081 | 21,092 | 11 | % | 20 | % | ||||||||||||
Loans and other financing | 33,980 | 42,826 | 37,252 | 43,751 | 52,030 | 19 | % | 53 | % | ||||||||||||
Non financial private sector & foreign residents | 33,980 | 42,826 | 37,252 | 43,751 | 52,030 | 19 | % | 53 | % | ||||||||||||
Other debt securities | 68,751 | 68,499 | 58,028 | 65,534 | 39,938 | -39 | % | -42 | % | ||||||||||||
Guarantees received | 5,092 | 4,599 | 4,861 | 5,962 | 5,869 | -2 | % | 15 | % | ||||||||||||
Investment in equity instruments | 137 | 124 | 175 | 195 | 197 | 1 | % | 44 | % | ||||||||||||
Total Assets | 397,104 | 400,893 | 564,816 | 607,538 | 638,555 | 5 | % | 61 | % | ||||||||||||
Deposits | 208,183 | 209,760 | 186,003 | 208,188 | 204,698 | -2 | % | -2 | % | ||||||||||||
Non financial public sector | 15,709 | 8,854 | 7,644 | 7,502 | 8,063 | 7 | % | -49 | % | ||||||||||||
Financial sector | 1,791 | 1,723 | 1,662 | 1,703 | 1,651 | -3 | % | -8 | % | ||||||||||||
Non financial private sector & foreign residents | 190,683 | 199,183 | 176,697 | 198,983 | 194,984 | -2 | % | 2 | % | ||||||||||||
Financial liabiities at fair value through P&L | 942 | 936 | 953 | 640 | 2,477 | 287 | % | - | |||||||||||||
Other liabilities from financial intermediation | 14,483 | 16,278 | 17,368 | 19,597 | 20,880 | 7 | % | 44 | % | ||||||||||||
Financing from the Central Bank and other fin. Inst | 328 | 3,362 | 2,524 | 2,919 | 4,456 | 53 | % | 1259 | % | ||||||||||||
Issued corporate bonds | 0 | 3,317 | 3,291 | 3,306 | 3,286 | ||||||||||||||||
Subordinated corporate bonds | 94,034 | 88,880 | 87,089 | 87,805 | 86,394 | -2 | % | -8 | % | ||||||||||||
Other non financial liabilities | 54 | 106 | 89 | 66 | 133 | 102 | % | 146 | % | ||||||||||||
Total Liabilities | 318,024 | 322,639 | 297,317 | 322,521 | 322,324 | 0 | % | 1 | % | ||||||||||||
NET FX POSITION (Pesos) | 79,080 | 78,254 | 267,499 | 285,017 | 316,231 | 11 | % | 300 | % | ||||||||||||
EOP FX (Pesos per USD) | 110.9783 | 125.2150 | 147.3150 | 177.1283 | 208.9883 | 18 | % | 88 | % | ||||||||||||
NET FX POSITION (USD) | 713 | 625 | 1,816 | 1,609 | 1,513 | -6 | % | 112 | % |
1Q23 Earnings Release |
1Q23 Snapshot
In AR$ Million. Figures of previous quarters have been restated to reflect the accumulated effect of the inflation adjustment for each period through March 31, 2023
1Q23 Earnings Release |
1Q23 Earnings Release |
Relevant and Recent Events
· | On April 25th 2023 TheShareholders’ Meeting resolved to distribute as dividend to the shareholders in cash and/or in kind, in the latter case valued at market price, the amount of AR$ 75,040,918,149.47, which represents AR$ 22.18 per share, subject to prior authorization from the Banco Central de la República Argentina (“BCRA”), and delegated to the Board the powers to determine the date of the effective availability thereof to the shareholders, currency, terms and other payment terms and conditions of such dividend. | |
On May 12th the Superintendencia de Entidades Financieras y Cambiarias of the Central Bank of the Republic of Argentina informed us that it has decided to authorize Banco Macro S.A. to distribute profits in cash and/or in kind (securities) for an aggregate amount of AR $75,040,918,000 which distribution shall be carried out in 6 monthly equal and consecutive instalments. | ||
· | Interest Payment Series E Dollar denominated Notes. In May 2023, the Bank paid quarterly interest on Class E dollar denominated notes in the amount of USD 60,105.48. | |
· | Interest Payment Series A Subordinated Notes. In May 2023, the Bank paid semiannual interest on Class A subordinated notes in the amount of USD 13,286,000. |
Regulatory Changes
· | Dividends and Profits distribution. In March 2023, through Communication “A” 7719 the Central Bank of Argentina announced that financial institutions could distribute up to 40% of profits and start paying dividends as of April provided that the distribution is carried out in 6 monthly equal and consecutive installments. |
· | Interest Rates. On March 17, 2023, through Communication “A” 7726 the Central Bank of Argentina decided to increase monetary policy rate by 300 basis points from 75% to 78%. Therefore interest rates paid on deposits were affected: |
o | Time deposits: Individuals up to Ps.10 million the interest rate was set at 78% and for all others 69.5% APR |
· | Interest Rates. On April 20, 2023, through Communication “A” 7745 the Central Bank of Argentina decided to increase monetary policy rate by 300 basis points from 78% to 81%. Therefore interest rates paid on deposits were affected: |
o | Time deposits: Individuals up to Ps.10 million the interest rate was set at 81% and for all others 72.5% APR |
· | Interest Rates. On April 27, 2023, through Communication “A” 7751 the Central Bank of Argentina decided to increase monetary policy rate by 1,000 basis points from 81% to 91%. Therefore interest rates paid on deposits were affected: |
o | Time deposits: Individuals up to Ps.30 million the interest rate was set at 91% and for all others 85.5% APR |
· | Interest Rates. On May 15, 2023, through Communication “A” 7767 the Central Bank of Argentina decided to increase monetary policy rate by 600 basis points from 81% to 91%. Therefore interest rates paid on deposits were affected: |
o | Time deposits: Individuals up to Ps.30 million the interest rate was set at 97% and for all others 90% APR |
1Q23 Earnings Release |
QUARTERLY BALANCE SHEET | MACRO Consolidated | Change | |||||||||||||||||||
In MILLION $ (Measuring Unit Current at EOP) | 1Q22 | 2Q22 | 3Q22 | 4Q22 | 1Q23 | QoQ | YoY | ||||||||||||||
ASSETS | |||||||||||||||||||||
Cash and deposits in Banks | 358,603 | 316,456 | 287,082 | 304,439 | 297,609 | -2 | % | -17 | % | ||||||||||||
Cash | 65,590 | 50,542 | 47,960 | 33,613 | 35,190 | 5 | % | -46 | % | ||||||||||||
Central Bank of Argentina | 197,097 | 170,352 | 142,771 | 174,718 | 181,264 | 4 | % | -8 | % | ||||||||||||
Other local & foreign entities | 95,787 | 95,387 | 96,337 | 96,093 | 81,141 | -16 | % | -15 | % | ||||||||||||
Other | 129 | 175 | 14 | 15 | 14 | -7 | % | -89 | % | ||||||||||||
Debt securities at fair value through profit & loss | 65,872 | 171,338 | 255,824 | 256,921 | 286,961 | 12 | % | 336 | % | ||||||||||||
Derivatives | 0 | 17 | 197 | 52 | 0 | -100 | % | - | |||||||||||||
Repo Transactions | 0 | 54,511 | 89,211 | 75,388 | 39,118 | -48 | % | - | |||||||||||||
Other financial assets | 51,016 | 48,894 | 46,303 | 70,537 | 82,489 | 17 | % | 62 | % | ||||||||||||
Loans & other receivables | 763,786 | 782,883 | 725,803 | 728,691 | 697,786 | -4 | % | -9 | % | ||||||||||||
Non Financial Public Sector | 4,270 | 5,647 | 2,541 | 2,687 | 1,410 | -48 | % | -67 | % | ||||||||||||
Financial Sector | 1,448 | 1,277 | 1,340 | 1,129 | 1,857 | 64 | % | 28 | % | ||||||||||||
Non Financial private sector and foreign | 758,068 | 775,959 | 721,922 | 724,875 | 694,519 | -4 | % | -8 | % | ||||||||||||
Other debt securities | 863,985 | 819,026 | 902,886 | 897,783 | 813,991 | -9 | % | -6 | % | ||||||||||||
Financial assets in guarantee | 65,473 | 35,644 | 38,921 | 37,275 | 37,498 | 1 | % | -43 | % | ||||||||||||
Income tax assets | 403 | 2,215 | 0 | 0 | 0 | ||||||||||||||||
Investments in equity instruments | 973 | 1,020 | 967 | 1,022 | 1,073 | 5 | % | 10 | % | ||||||||||||
Investments in other companies (subsidiaries and joint ventures) |
1,333 | 1,199 | 1,376 | 1,390 | 1,492 | 7 | % | 12 | % | ||||||||||||
Property, plant and equipment | 124,440 | 124,285 | 123,564 | 124,001 | 124,426 | 0 | % | 0 | % | ||||||||||||
Intangible assets | 19,853 | 21,043 | 21,442 | 21,230 | 21,808 | 3 | % | 10 | % | ||||||||||||
Deferred income tax assets | 86 | 173 | 128 | 90 | 89 | -1 | % | 3 | % | ||||||||||||
Other non financial assets | 6,795 | 10,331 | 19,093 | 15,160 | 15,259 | 1 | % | 125 | % | ||||||||||||
Non-current assets held for sale | 7,657 | 7,649 | 7,514 | 10,781 | 10,530 | -2 | % | 38 | % | ||||||||||||
TOTAL ASSETS | 2,330,275 | 2,396,684 | 2,520,311 | 2,544,760 | 2,430,129 | -5 | % | 4 | % | ||||||||||||
LIABILITIES | |||||||||||||||||||||
Deposits | 1,384,200 | 1,494,580 | 1,605,485 | 1,576,915 | 1,464,338 | -7 | % | 6 | % | ||||||||||||
Non Financial Public Sector | 161,097 | 145,911 | 192,434 | 133,847 | 111,060 | -17 | % | -31 | % | ||||||||||||
Financial Sector | 2,112 | 2,131 | 1,818 | 2,013 | 1,911 | -5 | % | -10 | % | ||||||||||||
Non Financial private sector and foreign | 1,220,991 | 1,346,538 | 1,411,233 | 1,441,055 | 1,351,367 | -6 | % | 11 | % | ||||||||||||
Liabilities at fair value through profit & loss | 942 | 941 | 953 | 640 | 2,477 | 287 | % | 163 | % | ||||||||||||
Derivatives | 15 | 2 | 3 | 3 | 100 | 3233 | % | 567 | % | ||||||||||||
Repo Transactions | 24,217 | 597 | 500 | - | 4,486 | - | -86 | % | |||||||||||||
Other financial liabilities | 121,026 | 122,872 | 121,330 | 164,450 | 153,007 | -7 | % | 26 | % | ||||||||||||
Financing received from Central Bank and Other Financial Institutions |
4,103 | 4,140 | 3,473 | 2,982 | 4,507 | 51 | % | 10 | % | ||||||||||||
Issued Corporate Bonds | 6,325 | 3,317 | 3,291 | 3,306 | 3,286 | -1 | % | -48 | % | ||||||||||||
Current income tax liabilities | 1,132 | 1,116 | 9,613 | 13,207 | 11,384 | -14 | % | 906 | % | ||||||||||||
Subordinated corporate bonds | 94,034 | 88,880 | 87,089 | 87,805 | 86,394 | -2 | % | -8 | % | ||||||||||||
Provisions | 4,090 | 4,084 | 4,489 | 3,303 | 3,166 | -4 | % | -23 | % | ||||||||||||
Deferred income tax liabilities | 15,445 | 16,654 | 18,815 | 16,164 | 16,552 | 2 | % | 7 | % | ||||||||||||
Other non financial liabilities | 97,894 | 68,471 | 58,582 | 52,113 | 47,615 | -9 | % | -51 | % | ||||||||||||
TOTAL LIABILITIES | 1,753,423 | 1,805,654 | 1,913,623 | 1,920,888 | 1,797,312 | -6 | % | 3 | % | ||||||||||||
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 | 213,790 | 213,790 | 213,790 | 213,790 | 213,790 | 0 | % | 0 | % | ||||||||||||
Reserves | 288,882 | 344,313 | 344,313 | 344,313 | 344,313 | 0 | % | 19 | % | ||||||||||||
Retained earnings | 43,162 | 166 | 166 | 166 | 52,558 | 31561 | % | 22 | % | ||||||||||||
Other accumulated comprehensive income | 5,585 | 110 | 3,080 | 39 | -792 | - | - | ||||||||||||||
Net income for the period / fiscal year | 12,298 | 19,522 | 32,179 | 52,392 | 9,763 | -81 | % | -21 | % | ||||||||||||
Shareholders' Equity attributable to parent company |
576,786 | 590,970 | 606,597 | 623,769 | 632,701 | 1 | % | 10 | % | ||||||||||||
Shareholders' Equity attributable to non controlling interest |
66 | 60 | 91 | 103 | 116 | 13 | % | 76 | % | ||||||||||||
TOTAL SHAREHOLDERS' EQUITY | 576,852 | 591,030 | 606,688 | 623,872 | 632,817 | 1 | % | 10 | % |
1Q23 Earnings Release |
INCOME STATEMENT | MACRO Consolidated | Change | |||||||||||||||||||
In MILLION $ (Measuring Unit Current at EOP) | 1Q22 | 2Q22 | 3Q22 | 4Q22 | 1Q23 | QoQ | YoY | ||||||||||||||
Interest Income | 140,653 | 167,277 | 195,842 | 241,797 | 228,618 | -5 | % | 63 | % | ||||||||||||
Interest Expense | 54,995 | 73,677 | 105,191 | 140,026 | 130,956 | -6 | % | 138 | % | ||||||||||||
Net Interest Income | 85,658 | 93,600 | 90,651 | 101,771 | 97,662 | -4 | % | 14 | % | ||||||||||||
Fee income | 23,030 | 23,054 | 22,618 | 23,087 | 24,292 | 5 | % | 5 | % | ||||||||||||
Fee expense | 2,160 | 2,269 | 2,283 | 2,313 | 2,260 | -2 | % | 5 | % | ||||||||||||
Net Fee Income | 20,870 | 20,785 | 20,335 | 20,774 | 22,032 | 6 | % | 6 | % | ||||||||||||
Subtotal (Net Interest Income + Net Fee Income) | 106,528 | 114,385 | 110,986 | 122,545 | 119,694 | -2 | % | 12 | % | ||||||||||||
Net Income from financial instruments at Fair Value Through Profit & Loss | 13,029 | 12,860 | 36,454 | -4,098 | 9,195 | - | -29 | % | |||||||||||||
Result from assets at amortised cost | - | - | - | 206 | - | - | - | ||||||||||||||
Difference in quoted prices of gold and foreign currency | 6,303 | 9,369 | 22,889 | 37,246 | 36,673 | -2 | % | 482 | % | ||||||||||||
Other operating income | 6,772 | 6,648 | 5,348 | 7,011 | 5,716 | -18 | % | -16 | % | ||||||||||||
Provision for loan losses | 1,522 | 1,345 | 2,035 | 3,082 | 3,479 | 13 | % | 129 | % | ||||||||||||
Net Operating Income | 131,110 | 141,917 | 173,642 | 159,828 | 167,799 | 5 | % | 28 | % | ||||||||||||
Personnel expenses | 20,044 | 26,384 | 25,209 | 22,874 | 23,468 | 3 | % | 17 | % | ||||||||||||
Administrative expenses | 11,265 | 11,888 | 11,844 | 12,668 | 11,650 | -8 | % | 3 | % | ||||||||||||
Depreciation and impairment of assets | 4,478 | 4,602 | 4,693 | 4,790 | 4,894 | 2 | % | 9 | % | ||||||||||||
Other operating expenses | 20,680 | 21,621 | 24,667 | 24,323 | 23,835 | -2 | % | 15 | % | ||||||||||||
Operating Income | 74,643 | 77,422 | 107,229 | 95,173 | 103,952 | 9 | % | 39 | % | ||||||||||||
Income from associates and joint ventures | -73 | -70 | -138 | 143 | -220 | - | - | ||||||||||||||
Result from net monetary position | -59,077 | -66,526 | -83,293 | -69,351 | -88,387 | - | - | ||||||||||||||
Net Income before income tax on cont. operations | 15,493 | 10,826 | 23,798 | 25,965 | 15,345 | -41 | % | -1 | % | ||||||||||||
Income tax on continuing operations | 3,219 | 3,608 | 11,115 | 5,740 | 5,568 | -3 | % | 73 | % | ||||||||||||
Net Income from continuing operations | 12,274 | 7,218 | 12,683 | 20,225 | 9,777 | -52 | % | -20 | % | ||||||||||||
Net Income for the period | 12,274 | 7,218 | 12,683 | 20,225 | 9,777 | -52 | % | -20 | % | ||||||||||||
Net Income of the period attributable to parent company | 12,298 | 7,224 | 12,657 | 20,213 | 9,763 | -52 | % | -21 | % | ||||||||||||
Net income of the period attributable to non-controlling interests | -24 | -6 | 26 | 12 | 14 | 17 | % | - | |||||||||||||
Other Comprehensive Income | -1,221 | -5,475 | 2,970 | -3,040 | -832 | - | - | ||||||||||||||
Foreign currency translation differences in financial statements conversion | -527 | -271 | -253 | 176 | -212 | - | - | ||||||||||||||
Profits or losses from financial assets measured at fair value through other comprehensive income (FVOCI) (IFRS 9(4.1.2)(a) | -694 | -5,204 | 3,223 | -3,216 | -620 | - | - | ||||||||||||||
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD | 11,053 | 1,743 | 15,653 | 17,185 | 8,945 | -48 | % | -19 | % | ||||||||||||
Total Comprehensive Income attributable to parent Company | 11,077 | 1,749 | 15,627 | 17,173 | 8,931 | -48 | % | -19 | % | ||||||||||||
Total Comprehensive Income attributable to non-controlling interests | -24 | -6 | 26 | 12 | 14 | - | - |
1Q23 Earnings Release |
QUARTERLY ANNUALIZED RATIOS | MACRO Consolidated | ||||||||||||||
1Q22 | 2Q22 | 3Q22 | 4Q22 | 1Q23 | |||||||||||
Profitability & performance | |||||||||||||||
Net interest margin | 22.8 | % | 24.7 | % | 28.1 | % | 32.7 | % | 33.6 | % | |||||
Net interest margin adjusted (exc. FX) | 21.2 | % | 22.5 | % | 22.5 | % | 23.9 | % | 24.4 | % | |||||
Net fee income ratio | 13.0 | % | 11.7 | % | 7.2 | % | 8.9 | % | 8.4 | % | |||||
Efficiency ratio | 29.6 | % | 32.7 | % | 25.8 | % | 27.2 | % | 25.5 | % | |||||
Net fee income as % of A&G Expenses | 44.0 | % | 35.7 | % | 27.9 | % | 32.7 | % | 32.9 | % | |||||
Return on average assets | 2.2 | % | 1.3 | % | 2.2 | % | 3.3 | % | 1.7 | % | |||||
Return on average equity | 9.1 | % | 5.1 | % | 8.8 | % | 16.9 | % | 8.2 | % | |||||
Liquidity | |||||||||||||||
Loans as a percentage of total deposits | 55.2 | % | 52.4 | % | 45.2 | % | 46.2 | % | 47.7 | % | |||||
Liquid assets as a percentage of total deposits | 93.0 | % | 90.0 | % | 90.0 | % | 94.0 | % | 97.0 | % | |||||
Capital | |||||||||||||||
Total equity as a percentage of total assets | 24.8 | % | 24.7 | % | 24.1 | % | 24.5 | % | 26.0 | % | |||||
Regulatory capital as % of APR | 38.5 | % | 40.5 | % | 40.4 | % | 39.9 | % | 42.4 | % | |||||
Asset Quality | |||||||||||||||
Allowances over total loans | 2.8 | % | 2.1 | % | 2.0 | % | 2.0 | % | 2.1 | % | |||||
Non-performing financing as a percentage of total financing | 1.7 | % | 1.3 | % | 1.3 | % | 1.3 | % | 1.4 | % | |||||
Coverage ratio w/allowances | 163.2 | % | 159.7 | % | 153.1 | % | 151.7 | % | 145.3 | % | |||||
Cost of Risk | 0.8 | % | 0.7 | % | 1.1 | % | 1.8 | % | 2.1 | % |
ACCUMULATED ANNUALIZED RATIOS | MACRO Consolidated | ||||||||||||||
1Q22 | 2Q22 | 3Q22 | 4Q22 | 1Q23 | |||||||||||
Profitability & performance | |||||||||||||||
Net interest margin | 22.8 | % | 23.8 | % | 25.2 | % | 27.1 | % | 33.6 | % | |||||
Net interest margin adjusted (exc. FX) | 21.2 | % | 21.9 | % | 22.1 | % | 22.5 | % | 24.4 | % | |||||
Net fee income ratio | 13.0 | % | 12.3 | % | 10.3 | % | 10.0 | % | 8.4 | % | |||||
Efficiency ratio | 29.6 | % | 31.2 | % | 29.1 | % | 28.6 | % | 25.5 | % | |||||
Net fee income as % of A&G Expenses | 44.0 | % | 39.5 | % | 35.5 | % | 34.8 | % | 32.9 | % | |||||
Return on average assets | 2.2 | % | 1.7 | % | 1.9 | % | 2.3 | % | 1.7 | % | |||||
Return on average equity | 9.1 | % | 7.1 | % | 7.7 | % | 9.7 | % | 8.2 | % | |||||
Liquidity | |||||||||||||||
Loans as a percentage of total deposits | 55.2 | % | 52.4 | % | 45.2 | % | 46.2 | % | 47.7 | % | |||||
Liquid assets as a percentage of total deposits | 93.0 | % | 90.0 | % | 90.0 | % | 94.0 | % | 97.0 | % | |||||
Capital | |||||||||||||||
Total equity as a percentage of total assets | 24.8 | % | 24.7 | % | 24.1 | % | 24.5 | % | 26.0 | % | |||||
Regulatory capital as % of APR | 38.5 | % | 40.5 | % | 40.4 | % | 39.9 | % | 42.4 | % | |||||
Asset Quality | |||||||||||||||
Allowances over total loans | 2.8 | % | 2.1 | % | 2.0 | % | 2.0 | % | 2.1 | % | |||||
Non-performing financing as a percentage of total financing | 1.7 | % | 1.3 | % | 1.3 | % | 1.3 | % | 1.4 | % | |||||
Coverage ratio w/allowances | 163.2 | % | 159.7 | % | 153.1 | % | 151.7 | % | 145.3 | % | |||||
Cost of Risk | 0.8 | % | 0.8 | % | 0.9 | % | 1.1 | % | 2.1 | % |
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: May 17, 2023
MACRO BANK INC. | ||
By: | /s/ Jorge Francisco Scarinci | |
Name: Jorge Francisco Scarinci | ||
Title: Chief Financial Officer |