Core Insights - Banco Macro S.A. is highlighted as a high growth stock with a Buy recommendation from BofA analyst Ernesto Gabilondo, who set a target price of $117 [1][2]. Financial Performance - The bank's net income for the first nine months of 2025 (9M25) was Ps.176.7 billion, representing a 35% decrease (Ps.95.2 billion) compared to the same period in 2024 [2]. - Operating income, excluding general, administrative, and personnel expenses, was reported at Ps.1.03 trillion in 9M25, down by Ps.1.84 trillion from the previous year [2]. - Banco Macro's deposits increased by 5% quarter-over-quarter and 11% year-over-year in Q3 2025, accounting for approximately 75% of total liabilities [2]. Company Overview - Banco Macro S.A. is an Argentine bank that provides a range of financial services including bank accounts, credit and debit cards, loans, mortgages, car financing, insurance, bill payments, and money transfers [3].

Financial Data and Key Metrics Changes - In Q3 2025, Banco Macro reported a net income loss of ARS 33.1 billion, a decrease of ARS 191.5 billion compared to the previous quarter, primarily due to higher loan loss provisions and administrative expenses [3][4] - Total comprehensive income for the quarter was an ARS 28.4 billion loss, with net income for the first nine months of 2025 totaling ARS 176.7 billion, down 35% year-on-year [3][4] - The annualized ROE and ROA as of Q3 2025 were 4.5% and 1.5%, respectively [3] Business Line Data and Key Metrics Changes - Net operating income before general and administrative expenses was ARS 779.6 billion, down 23% from Q2 2025 [4] - Provision for loan losses increased to ARS 156.8 billion, up 45% from the previous quarter and 424% year-on-year [4] - Net interest income totaled ARS 686.2 billion, a decrease of 7% from Q2 2025 and 8% year-on-year [4][5] - Net fee income was ARS 177.3 billion, down 7% from Q2 2025, with credit card fees decreasing by 22% [9] Market Data and Key Metrics Changes - Private sector loans increased by 3% quarter-on-quarter and 67% year-on-year, with commercial loans showing significant growth [14][15] - Total deposits increased by 5% quarter-on-quarter, totaling ARS 11.8 trillion, with private sector deposits increasing by 6% [15] - Banco Macro's market share in private sector loans reached 9% as of September 2025 [15] Company Strategy and Development Direction - The bank aims to grow loans by 35% in real terms and deposits by 25% in real terms for 2026, with a focus on both commercial and consumer sectors [22][38] - The bank is exploring M&A opportunities due to its excess capital of ARS 3.3 trillion, with potential developments expected in the next 12-18 months [31][32] Management's Comments on Operating Environment and Future Outlook - Management noted that the increase in provisions was due to a peak in non-performing loans (NPLs) and unexpected additional expenses [21] - The bank expects the peak of NPLs to occur between October and November, with a cost of risk forecasted to be around 5% in 2026 [29][30] - Management remains optimistic about the bond portfolio performance improving in Q4 2025 [57] Other Important Information - The efficiency ratio deteriorated to 39.1% from 35.9% in Q2 2025, indicating increased operational costs [11] - The non-performing total finance ratio reached 3.02%, with a coverage ratio of 120.87% [16] Q&A Session Summary Question: Was the result worse than anticipated? - Management acknowledged that the results were impacted by higher provisions for NPLs and unexpected expenses, along with margin compression due to interest rate fluctuations [21][22] Question: What are the expectations for loan growth next year? - The bank forecasts a 35% growth in loans and a 25% growth in deposits for 2026, with an expected ROE in the low 10s [22][30] Question: Can you provide details on the extra expenses? - The additional expenses were primarily related to early retirement plans that were not anticipated [24] Question: When do you expect the peak of NPLs? - Management expects the peak to occur between October and November, with a cost of risk around 6.5% for Q4 [29][30] Question: What factors will drive deposit growth in 2026? - Positive real interest rates are expected to drive deposit growth, with a forecast of 25% growth in real terms [61] Question: What is the plan for the $400 million bond maturing in 2026? - Management is considering various options, including rolling over the bond or issuing a new senior bond, with a decision expected by mid-2026 [72][74]

Financial Data and Key Metrics Changes - In Q3 2025, Banco Macro reported a net income loss of ARS 33.1 billion, a decrease of ARS 191.5 billion compared to the previous quarter, primarily due to higher loan loss provisions and administrative expenses [3][4] - Total comprehensive income for the quarter was an ARS 28.4 billion loss, with net income for the first nine months of 2025 totaling ARS 176.7 billion, down 35% year-on-year [3][4] - The annualized ROE and ROA as of Q3 2025 were 4.5% and 1.5%, respectively [3] Business Line Data and Key Metrics Changes - Net operating income before general and administrative expenses was ARS 779.6 billion, a decrease of 23% quarter-on-quarter and 29% year-on-year [4] - Provision for loan losses totaled ARS 156.8 billion, up 45% from the previous quarter and 424% year-on-year [4] - Net interest income was ARS 686.2 billion, down 7% from Q2 2025 and 8% year-on-year [4][5] - Net fee income decreased by 7% quarter-on-quarter but increased by 14% year-on-year [9][10] Market Data and Key Metrics Changes - Total financials reached ARS 10.1 trillion, increasing 3% quarter-on-quarter and 69% year-on-year [13] - Private sector loans increased by 3% quarter-on-quarter and 67% year-on-year, with notable increases in personal and mortgage loans [14][15] - Total deposits increased by 5% quarter-on-quarter and 11% year-on-year, with demand deposits leading the growth [15] Company Strategy and Development Direction - The company aims for loan growth of 35% in real terms for 2026, with deposits expected to grow by 25% in real terms [22][23] - The bank's market share in private sector loans reached 9% as of September 2025, with a focus on maintaining a well-optimized deposit base [15][16] - The bank plans to utilize its excess capital of ARS 3.3 trillion for potential M&A opportunities in the next 12-18 months [31] Management Comments on Operating Environment and Future Outlook - Management noted that the increase in provisions was due to a peak in non-performing loans (NPLs) and unexpected additional expenses [22] - The bank expects the peak of NPLs to occur between October and November, with a cost of risk forecasted to be around 5% in 2026 [30] - Management remains optimistic about the stability of new vintages and expects improvements in asset quality [66] Other Important Information - The efficiency ratio deteriorated to 39.1% from 35.9% in the previous quarter, indicating increased operational costs [11] - The bank's liquidity ratios remain strong, with a liquid assets to total deposits ratio of 67% [16] Q&A Session Summary Question: Was the result worse than anticipated? - Management acknowledged that the results were impacted by higher provisions and unexpected expenses, particularly due to an increase in NPLs [22] Question: What are the expectations for loan growth next year? - The bank forecasts a 35% growth in loans and a 25% growth in deposits in real terms for 2026 [23] Question: Can you provide details on the extra expenses? - The additional expenses were primarily related to early retirement plans that were not anticipated [25] Question: When do you expect the peak of NPLs? - Management expects the peak to occur between October and November, with a cost of risk around 6.5% for Q3 [30] Question: What is the plan for the $400 million bond maturing in 2026? - The bank is considering various options, including rolling over the bond or issuing a new senior bond [74] Question: Will there be additional expenses related to early retirement plans? - There could be additional expenses, but it is too early to comment definitively [57]

Financial Data and Key Metrics Changes - In Q3 2025, Banco Macro reported a net income loss of ARS 33.1 billion, a decrease of ARS 191.5 billion from the previous quarter, primarily due to higher loan loss provisions and administrative expenses [3] - Total comprehensive income for the quarter was an ARS 28.4 billion loss, with net income for the first nine months of 2025 totaling ARS 176.7 billion, down 35% year-on-year [3] - The annualized ROE and ROA as of Q3 2025 were 4.5% and 1.5%, respectively [3] Business Line Data and Key Metrics Changes - Net operating income before general and administrative expenses was ARS 779.6 billion, down 23% from Q2 2025 and down 29% year-on-year [4] - Provision for loan losses increased to ARS 156.8 billion, up 45% from Q2 2025 and up 424% year-on-year [4] - Net interest income totaled ARS 686.2 billion, a decrease of 7% from Q2 2025 and 8% year-on-year [4] - Net fee income was ARS 177.3 billion, down 7% from Q2 2025 but up 14% year-on-year [10] Market Data and Key Metrics Changes - Total financials reached ARS 10.1 trillion, increasing 3% quarter-on-quarter and 69% year-on-year [13] - Private sector loans increased 3% quarter-on-quarter and 67% year-on-year, with commercial loans showing significant growth [14] - Total deposits increased 5% quarter-on-quarter and 11% year-on-year, with demand deposits leading the growth [16] Company Strategy and Development Direction - The bank aims to utilize its excess capital of ARS 3.3 trillion for potential M&A opportunities, with a capital adequacy ratio of 29.9% [17] - The strategy includes a focus on both commercial and consumer loan growth, with expectations of a 35% real growth in loans for 2026 [25] - The bank's market share in private sector loans reached 9% as of September 2025, with a focus on maintaining a well-optimized deposit base [16] Management's Comments on Operating Environment and Future Outlook - Management indicated that the delinquency rate was higher than expected, leading to increased provisions [20] - For 2026, the bank forecasts loan growth of 35% in real terms and deposits to grow around 25% in real terms, with an expected ROE in the low 10s [21] - The peak in non-performing loans (NPLs) is anticipated to occur between October and November 2025, with a cost of risk expected to decrease to around 5% in 2026 [23] Other Important Information - The bank's non-performing total finance ratio reached 3.02%, with a coverage ratio of 120.87% [17] - Employee benefits increased by 20% due to provisions for early retirement plans, impacting administrative expenses [12] - The bank's liquidity ratios remain strong, with a liquid assets to total deposit ratio of 67% [17] Q&A Session Summary Question: Was the result worse than anticipated? - Management acknowledged that the results were impacted by higher provisions and unexpected expenses, along with bond price performance [20] Question: What are the expectations for loan growth and returns next year? - The bank forecasts a 35% real growth in loans and a low 10s ROE for 2026 [21] Question: What additional expenses were incurred? - The unexpected expenses were primarily related to early retirement plans [22] Question: When is the peak of NPLs expected? - The peak is anticipated to occur between October and November, with a cost of risk of 6.5% in Q3 [23] Question: What is the plan for the $400 million bond maturing in 2026? - Management stated that various options are being considered, including potential bond issuance or cancellation [39]

Core Insights - The article emphasizes the importance of identifying undercovered stocks in Brazil and Latin America, suggesting that these often present the best investment opportunities [1]. Group 1: Company Focus - The analyst has a beneficial long position in the shares of ARGT, indicating confidence in the stock's performance [2]. - The analysis is based on personal opinions and does not involve compensation from any company mentioned, ensuring an unbiased perspective [2]. Group 2: Industry Context - The research primarily covers stocks in Brazil and Latin America, highlighting a niche focus that may uncover unique investment opportunities [1].

Core Insights - Banco Macro S.A. reported its third quarter results for 2025, highlighting significant changes in net income and operational metrics [1][4]. Financial Performance - In the first nine months of 2025, Banco Macro's net income totaled Ps.176.7 billion, a decrease of 35% or Ps.95.2 billion compared to the same period last year [4]. - The accumulated annualized return on average equity (ROAE) was 4.5%, while the return on average assets (ROAA) was 1.3% as of 3Q25 [4]. - Operating income for the first nine months of 2025 was Ps.1.03 trillion, which is 64% or Ps.1.84 trillion lower than in 9M24 [4]. Financing and Deposits - Total financing increased by 3% or Ps.332.4 billion quarter over quarter, reaching Ps.10.12 trillion, and rose by 69% or Ps.4.13 trillion year over year [4]. - Total deposits grew by 5% or Ps.556.4 billion QoQ and 11% or Ps.1.17 trillion YoY, totaling Ps.11.81 trillion, which represents 75% of the Bank's total liabilities [4]. - Private sector deposits increased by 6% or Ps.604.9 billion QoQ [4]. Capital and Solvency - Banco Macro maintained a strong solvency ratio with excess capital of Ps.3.30 trillion, a Capital Adequacy Ratio of 29.9%, and a Tier 1 Ratio of 29.2% [4]. - Liquid assets accounted for 67% of total deposits in 3Q25 [4]. Asset Quality - The non-performing to total financing ratio stood at 3.19%, with a coverage ratio of 120.87% [4]. Customer Base - As of 3Q25, Banco Macro served 6.29 million retail customers, including 2.5 million digital customers, and over 219,235 corporate customers across Argentina [4].

Core Viewpoint - Banco Macro S.A. (NYSE:BMA) has experienced a significant increase in its consensus price target from $96.33 to $130, indicating a positive sentiment among analysts despite a recent decline in stock value [2][4][6] Price Target Changes - The average price target for BMA was $96.33 three months ago, reflecting a notable increase to $130 last month, suggesting improved expectations for the bank's performance [2][3][4] - HSBC has set a more conservative price target of $80, contrasting with the overall upward trend in price targets by other analysts [2][6] Stock Performance - BMA has faced a decline of 15.2% in its stock value over the past four weeks, but it is now considered technically oversold, indicating that selling pressure may be easing [3][6] - The stock's price target increase may signal a favorable outlook for BMA, despite the recent downturn [5][6] Analyst Sentiment - The upward revision in earnings estimates by Wall Street analysts suggests a potential trend reversal for BMA, aligning with the increase in the consensus price target [4][6] - The stable average price target of $96.33 a year ago indicates consistent analyst sentiment until the recent quarter [4]

Core Insights - The article compares Mizuho (MFG) and Banco Macro (BMA) to determine which stock is more attractive for value investors [1] - MFG has a Zacks Rank of 2 (Buy), while BMA has a Zacks Rank of 5 (Strong Sell), indicating a more favorable analyst outlook for MFG [3] - Value investors typically analyze various fundamental metrics to identify undervalued stocks [3] Valuation Metrics - MFG has a forward P/E ratio of 10.94, compared to BMA's forward P/E of 16.81, suggesting MFG is more attractively priced [5] - The PEG ratio for MFG is 0.79, while BMA's PEG ratio is 1.47, indicating MFG's expected earnings growth is more favorable [5] - MFG's P/B ratio is 1.11, while BMA's P/B ratio is 1.24, further supporting MFG's valuation attractiveness [6] Conclusion - MFG exhibits stronger estimate revision activity and more appealing valuation metrics than BMA, making it the preferred choice for value investors [7]

Core Insights - The article emphasizes the importance of connecting macroeconomic context with company-level valuation to identify long-term investment opportunities [1] Group 1: Investment Philosophy - The investment philosophy focuses on a deep-value approach with a long-term vision, targeting underfollowed or undervalued companies where fundamentals are often overlooked [1] - Established leaders are also considered when new opportunities or structural value emerge [1] Group 2: Market Perspective - Being based in Argentina provides a unique perspective on a complex and dynamic market, allowing for in-depth coverage of local assets while also exploring broader Latin American and global trends [1]

Group 1 - Argentine financial markets experienced a rally following the overwhelming victory of Javier Milei's party in the midterm elections, with voters supporting economic reforms through fiscal tightening and free market measures [1][2] - The election results ensure the continuation of U.S. financial aid to Argentina, as President Trump had previously stated that support would depend on the election outcome [1] - Several Argentine stocks surged in pre-market trading, with Banco BBVA rising over 36%, Galicia Financial up 35%, Grupo Supervielle increasing by 31%, Banco Macro climbing 35%, and YPF and Pampa Energía both recording 26% gains [1] Group 2 - Despite a 17.7% year-to-date decline in the Argentine benchmark S&P MERVAL index, the Global X MSCI Argentina ETF saw a 16% increase in pre-market trading, narrowing its year-to-date loss to 10% [2] - The midterm elections involved the renewal of half of the Chamber of Deputies and one-third of the Senate, with Milei's party receiving approximately 41% of the votes compared to 31% for the leftist opposition [2] - Prior to the election, Argentine assets had experienced a downturn due to political tensions following Milei's party's losses in key local elections [2]