Core Viewpoint - Investors are evaluating Banco Macro (BMA) and Banco Itau (ITUB) to determine which stock offers better value for investment at the current time [1] Valuation Metrics - Both BMA and ITUB have a Zacks Rank of 2 (Buy), indicating a positive earnings outlook due to favorable analyst estimate revisions [3] - BMA has a forward P/E ratio of 6.88, while ITUB has a forward P/E of 8.63, suggesting BMA is more undervalued [5] - The PEG ratio for BMA is 0.26, compared to ITUB's PEG ratio of 0.98, indicating BMA's expected earnings growth is more favorable relative to its price [5] - BMA's P/B ratio is 1.05, while ITUB's P/B ratio is 1.89, further supporting BMA's position as the more attractive value option [6] - BMA has a Value grade of A, while ITUB has a Value grade of C, highlighting the relative undervaluation of BMA [6]

Core Viewpoint - Banco Macro (BMA) has experienced a significant downtrend, with a 15.2% decline over the past four weeks, but it is now in oversold territory, suggesting a potential turnaround due to improved earnings expectations from analysts [1]. Group 1: Technical Indicators - The Relative Strength Index (RSI) is a key technical indicator used to determine if a stock is oversold, with readings below 30 indicating oversold conditions [2]. - BMA's current RSI reading is 29, indicating that the heavy selling pressure may be exhausting itself, which could lead to a reversal in the stock's trend [5]. - The RSI helps investors identify potential entry points for stocks that have fallen below their fair value due to excessive selling [3]. Group 2: Fundamental Indicators - Analysts covering BMA have shown a strong consensus in raising earnings estimates for the current year, resulting in a 2.5% increase in the consensus EPS estimate over the last 30 days [7]. - An upward trend in earnings estimate revisions typically correlates with price appreciation in the near term, supporting the case for a potential rebound in BMA's stock price [7]. - BMA holds a Zacks Rank 1 (Strong Buy), placing it in the top 5% of over 4,000 ranked stocks based on earnings estimate trends and EPS surprises, indicating strong potential for a turnaround [8].

Core Insights - The article compares Banco Macro (BMA) and Banco Itau (ITUB) to determine which stock offers better value for investors [1] Valuation Metrics - Banco Macro has a Zacks Rank of 1 (Strong Buy), while Banco Itau has a Zacks Rank of 2 (Buy), indicating a stronger earnings outlook for BMA [3] - BMA's forward P/E ratio is 7.43, compared to ITUB's 9.03, suggesting BMA is more attractively priced [5] - The PEG ratio for BMA is 0.28, indicating better value relative to expected earnings growth compared to ITUB's PEG ratio of 1.02 [5] - BMA's P/B ratio is 1.14, while ITUB's P/B ratio is 1.97, further supporting BMA's valuation advantage [6] - Based on these metrics, BMA earns a Value grade of B, while ITUB receives a Value grade of D [6] Conclusion - Overall, BMA is positioned as the superior value option due to its solid earnings outlook and favorable valuation metrics [7]

Core Viewpoint - Banco Macro S.A. has priced an offering of US$400 million of its Notes due 2029, with a fixed annual interest rate of 8.000% until June 23, 2029, as part of a larger financing program for up to US$1,500 million in debt securities [1] Financing Details - The offering price for the Notes is set at 99.163% of the principal amount [1] - The net proceeds from this offering will be used for various purposes, including repayment/refinancing of indebtedness, investments in fixed assets, working capital, acquisitions, and general financing needs [1] Regulatory Compliance - The Notes will not be registered under the U.S. Securities Act of 1933 or any state securities law, and will be offered to qualified institutional buyers under Rule 144A and Regulation S [3] - The public offering in Argentina is authorized by the Argentine National Securities Commission (CNV) under Banco Macro's US$1,500 million Global Medium-Term Note Program [4]

Group 1 - Investors in Banco Macro S.A. (BMA) should monitor the stock due to significant movements in the options market, particularly the Jul 18, 2025 $60 Call, which has high implied volatility [1] - Implied volatility indicates the market's expectation of future price movement, suggesting that investors anticipate a significant change in the stock price, possibly due to an upcoming event [2] - Banco Macro currently holds a Zacks Rank 1 (Strong Buy) in the Banks - Foreign industry, which is in the top 7% of the Zacks Industry Rank [3] Group 2 - The recent high implied volatility may indicate a developing trading opportunity, as options traders often seek to sell premium on options with high implied volatility to capture decay [4]

Core Viewpoint - Investors in the Banks - Foreign sector should consider Banco Macro (BMA) and Banco Itau (ITUB) for potential undervalued stock opportunities [1] Group 1: Company Rankings and Valuation Metrics - Banco Macro has a Zacks Rank of 1 (Strong Buy), while Banco Itau has a Zacks Rank of 3 (Hold), indicating a more favorable earnings estimate revision trend for BMA [3] - BMA has a forward P/E ratio of 7.94, compared to ITUB's forward P/E of 9.36, suggesting BMA is more attractively priced [5] - The PEG ratio for BMA is 0.30, indicating strong expected earnings growth relative to its price, while ITUB's PEG ratio is 1.15 [5] - BMA's P/B ratio is 1.21, which is lower than ITUB's P/B ratio of 1.96, further supporting BMA's valuation advantage [6] Group 2: Value Grades - Based on the valuation metrics, BMA earns a Value grade of B, while ITUB receives a Value grade of D, highlighting BMA's superior value proposition [6][7]

Core Viewpoint - Banco Macro (BMA) has experienced a significant downtrend, with an 18.2% decline in stock price over the past four weeks, but it is now in oversold territory, suggesting a potential turnaround due to improved earnings expectations from analysts [1]. Group 1: Technical Indicators - The Relative Strength Index (RSI) is a key technical indicator used to determine if a stock is oversold, with a reading below 30 typically indicating this condition [2]. - BMA's current RSI reading is 28.6, indicating that the heavy selling pressure may be exhausting, and a price reversal could be imminent [5]. Group 2: Fundamental Indicators - Analysts covering BMA have raised their earnings estimates for the current year, resulting in a 2.5% increase in the consensus EPS estimate over the last 30 days, which often correlates with price appreciation [7]. - BMA holds a Zacks Rank 1 (Strong Buy), placing it in the top 5% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises, further supporting the potential for a near-term turnaround [8].

Financial Data and Key Metrics Changes - In Q1 2025, Banco Macro's net income totaled ARS 45.7 billion, a decrease of 59% or ARS 65.3 billion compared to Q4 2024 [4] - The annualized return on average equity was 3.81% and the return on average assets was 1.2% [5] - Net operating income before general and administrative expenses was ARS 82.6 billion lower than the previous quarter, a decrease of 9% [5] - Provision for loan losses increased by 60% or ARS 25.3 billion compared to Q4 2024 [6] - Net interest income totaled ARS 579.2 billion, ARS 1 billion higher than the previous quarter [6] Business Line Data and Key Metrics Changes - Interest income from loans and other financing increased by 9% or ARS 49.6 billion compared to the previous quarter [8] - Income from government and private securities decreased by 21% or ARS 71.5 billion quarter on quarter [8] - Fee income totaled ARS 169.8 billion, a decrease of 1% compared to the previous quarter [11] - Net income from financial assets and liabilities at fair value through profit or loss decreased by 55% or ARS 80 billion compared to Q4 2024 [12] Market Data and Key Metrics Changes - Banco Macro's market share over private sector loans reached 9.5% as of March 2025 [16] - Total deposits increased by 5% or ARS 485.4 billion quarter on quarter, totaling ARS 9.6 trillion [16] - Nonperforming total financial ratio reached 1.44% [17] Company Strategy and Development Direction - The bank aims to utilize its excess capital effectively, with a capital adequacy ratio of 34.3% and a Tier one ratio of 33.6% [18] - The focus is on organic growth, with potential for future M&A opportunities as the number of banks in Argentina may decrease [27] - The bank is adjusting its bond portfolio to reduce public sector exposure and increase loan growth [46] Management's Comments on Operating Environment and Future Outlook - The bank forecasts a real loan growth of 60% for 2025 and a real deposit growth of 45% [24] - Expected inflation for 2025 is around 30%, with a declining trend in domestic interest rates anticipated [36] - Operating expenses are expected to grow close to inflation, around 30% [37] Other Important Information - The effective income tax rate was 43% higher than the previous quarter [14] - The bank's liquidity remains strong, with a liquid assets to deposit ratio of 68% [18] Q&A Session Summary Question: Update on guidance for loan growth, deposits, and ROE - Management maintains a 60% loan growth forecast for 2025, with deposits expected to grow by 45% and ROE revised to 8% to 10% [24][25] Question: Drivers behind increased deposit growth - The increase in deposit growth is attributed to better-than-expected volume growth and stronger dollar deposit growth [28] Question: Macroeconomic expectations for interest rates, inflation, and GDP growth - Forecasts include 30% inflation for 2025, with a real GDP growth of 5% [36] Question: Loan to deposit ratio and capital ratio expectations - The loan to deposit ratio is expected to increase to around 90% by the end of 2025, with a strong capital ratio allowing for potential M&A opportunities [39][40] Question: Bond portfolio positioning and preferences - The bank prefers high exposure to inflation-linked bonds to hedge equity, aiming to maintain a stable level of available-for-sale bonds [46][48]

Financial Data and Key Metrics Changes - In Q1 2025, Banco Macro's net income totaled ARS 45.7 billion, a decrease of 59% or ARS 65.3 billion compared to Q4 2024 [4] - The annualized return on average equity was 3.81% and the return on average assets was 1.2% [5] - Net operating income before general and administrative expenses was ARS 801 billion, down 9% or ARS 82.6 billion from Q4 2024 [5] - Provision for loan losses increased by 60% or ARS 25.3 billion compared to Q4 2024, totaling ARS 66 billion [6] - Net interest income was ARS 579.2 billion, ARS 1 billion higher than Q4 2024, and up 122% or ARS 318 billion year-on-year [6][10] Business Line Data and Key Metrics Changes - Interest income totaled ARS 866.7 billion, down 3% or ARS 22.6 billion from Q4 2024 [7] - Income from interest on loans increased by 9% or ARS 49.6 billion compared to the previous quarter, but decreased by 18% or ARS 132.2 billion year-on-year [7][8] - Fee income was ARS 169.8 billion, a decrease of 1% or ARS 943 million from Q4 2024, but increased by 29% year-on-year [11] - Net income from financial assets and liabilities at fair value through profit or loss was ARS 66.4 billion, down 55% from Q4 2024 [12] Market Data and Key Metrics Changes - Banco Macro's market share over private sector loans reached 9.5% as of March 2025 [16] - Total deposits increased by 5% or ARS 485.4 billion quarter-on-quarter, totaling ARS 9.6 trillion, and increased by 23% year-on-year [16] - Nonperforming loans ratio was 1.44%, with a coverage ratio of 163.34% [17] Company Strategy and Development Direction - The bank aims to utilize its excess capital of ARS 3.2 trillion, with a capital adequacy ratio of 34.3% and a Tier one ratio of 33.6% [18] - The focus is on organic growth, with potential for future M&A opportunities as the number of banks in Argentina may shrink [26][27] Management's Comments on Operating Environment and Future Outlook - Management expects real loan growth of 60% for 2025 and deposits to grow at 45% [24] - Inflation is forecasted at around 30% for 2025, with a declining trend in domestic interest rates anticipated [35] - Operating expenses are expected to grow close to inflation, around 30% [36] Other Important Information - The effective income tax rate was 43% higher than in Q4 2024 [14] - The bank's liquidity remains strong, with a liquid assets to deposits ratio of 68% [18] Q&A Session Summary Question: Update on guidance for loan growth, deposits, and ROE - Management maintains a 60% loan growth forecast for 2025, with deposits expected to grow at 45% and ROE revised to 8% to 10% [24][25] Question: Expectations on macroeconomic factors - GDP growth is forecasted at 5% for 2025, with inflation at 30% and a declining trend in interest rates [35] Question: Loan to deposit ratio and capital ratio - The loan to deposit ratio is expected to increase, with loans representing 48% of total assets in Q1 2025 [37] Question: Bond portfolio positioning - The bank prefers high exposure to inflation-linked securities to hedge equity, aiming to maintain a stable level of available-for-sale bonds [46][48]

Core Insights - Banco Macro reported a net income of Ps.45.7 billion for 1Q25, which is a decrease of 59% or Ps.65.3 billion compared to 4Q24 [3] - The annualized return on average equity (ROAE) was 3.8% and the annualized return on average assets (ROAA) was 1.2% in 1Q25 [3] Financial Performance - Operating income before general and administrative (G&A) and personnel expenses totaled Ps.801 billion, down 9% or Ps.82.6 billion from 4Q24 and down 68% or Ps.1.7 trillion from the same period last year [3] - Operating income after G&A and personnel expenses was Ps.347.8 billion, which is 11% or Ps.43 billion lower than 4Q24 and 82% or Ps.1.6 trillion lower than the same period last year [3] Financing and Deposits - Total financing increased by 22% or Ps.1.4 trillion quarter over quarter, totaling Ps.7.7 trillion, and increased by 97% or Ps.3.8 trillion year over year [3] - Total deposits rose by 5% or Ps.485.4 billion QoQ and by 23% or Ps.1.8 trillion YoY, reaching Ps.9.6 trillion, which represents 82% of the Bank's total liabilities [3] Solvency and Asset Quality - Banco Macro maintained a strong solvency ratio with excess capital of Ps.3.2 trillion, a Capital Adequacy Ratio of 34.3%, and a Tier 1 Ratio of 33.6% [3] - The non-performing to total financing ratio was 1.44%, and the coverage ratio reached 163.34% [3] Customer Base - As of 1Q25, Banco Macro served 6.23 million retail customers, including 2.6 million digital customers, through its 505 branches and 8,903 employees across 23 of the 24 provinces in Argentina [3]