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Banco Macro S.A.(BMA) - 2023 Q3 - Earnings Call Transcript
2023-11-27 19:33
Yes, that is correct. Again, very preliminary estimates because, of course, next year is going to be important year in sense of we are going to have new President, new economic cabinet, new measures. So as of today, we are working with that scenario. That could change at the beginning of 2024 depending on the measures and, of course the outcome that economists might be looking for in terms of inflation, GDP, et cetera. Thanks very much, Nicolas and Jorge, for the chance to ask questions. So Jorge, I want to ...
Banco Macro S.A.(BMA) - 2023 Q2 - Earnings Call Transcript
2023-08-25 17:00
In the quarter, net interest income totaled ARS107.9 billion, 11% or ARS12.9 billion lower than the result posted in the first quarter of 2023 and 7% or ARS7.9 million lower than the result posted a year ago. In the second quarter of 2023, interest income totaled ARS307.1 billion, 9% or ARS24.1 billion higher than the first quarter of 2023, and 48% or ARS100 billion higher than the previous year. In the second quarter of 2023, interest from loans represented 34% of total interest income. Net income from gov ...
Banco Macro S.A.(BMA) - 2023 Q2 - Quarterly Report
2023-08-09 16:00
23. COMMISSIONS INCOME 25. OTHER OPERATING INCOME 26. EMPLOYEE BENEFITS | --- | --- | --- | |-----------------------------------------------------------------------------------------------------------------|------------|------------| | Composition | 03/31/2023 | 03/31/2022 | | Turnover tax | 13,993,971 | 11,339,648 | | From credit cards | 5,149,418 | 4,886,225 | | Charges for other provisions | 661,986 | 874,105 | | Deposit guarantee fund contributions | 606,291 | 561,131 | | Other adjustments and interests ...
Banco Macro S.A.(BMA) - 2023 Q1 - Quarterly Report
2023-05-23 16:00
As explained in note 1, on October 1, 2021, the Bank acquired an investment in Fintech SGR. Even though the Bank holds 49.9939% of Class B shares held by the protector partners, and the 24.99% in the total capital stock of this company, the Bank has the power to direct Fintech's relevant activities. Therefore, the Bank controls this structured entity and consolidates its Financial Statements together with the risk funds ("Fondo de Riesgo"). The Bank considers the Argentine peso as its functional and present ...
Banco Macro S.A.(BMA) - 2023 Q1 - Earnings Call Transcript
2023-05-18 18:50
Banco Macro S.A. (NYSE:BMA) Q1 2023 Earnings Conference Call May 18, 2023 11:00 AM ET Nicolas Torres - Investor Relations Gustavo Manriquez - Chief Executive Officer Brian Flores - Citibank Carlos Gomez - HSBC Good morning, ladies and gentlemen, and thank you for waiting. At this time, we would like to welcome everyone to Banco Macro's 1Q '23 Earnings Conference Call. We would like to inform you that 1Q '23 press release is available to download at the Investor Relations website of Banco Macro at www.macro. ...
Banco Macro S.A.(BMA) - 2022 Q4 - Annual Report
2023-04-27 16:00
Portfolio Composition - The portfolio composition from Corporate Banking shows a decline in corporate companies from 31% in 2020 to 10% in 2022, while agricultural companies increased from 25% to 34% in the same period[109]. Credit Risk Management - The Credit Risk Department has implemented a risk rating model that evaluates both quantitative and qualitative factors for individual and corporate clients, enhancing the efficiency of the credit risk rating process[113]. - The credit risk management system includes automated tools for calculating key performance indicators to monitor business changes according to the defined risk appetite[113]. - Argentine banks must maintain minimum credit provisions based on client risk categories, with "Irrecoverable" loans requiring a 50% provision for those with preferred guarantees and 100% for those without[135]. - The minimum credit provisions for "With high risk of insolvency" loans are set at 25% with preferred guarantees and 50% without[135]. - The classification of borrowers includes categories such as Normal Situation, Low Risk, Medium Risk, and High Risk based on overdue periods[165]. - Loans classified as irrecoverable are those with payment obligations overdue for more than 180 days[166]. - An additional allowance of Ps. 1,837 million was recorded as of December 31, 2022, due to uncertainties in credit risk and macroeconomic conditions[294]. Regulatory Framework - The Central Bank's Communication "A" 6885 regulates Payment Service Providers (PSPs) and mandates registration for those offering payment accounts[123]. - The Argentine Productive Financing Law No. 27,440 modernized the legal framework of the Argentine capital markets, impacting various financial laws and regulations[115]. - The Central Bank's guidelines for corporate governance now include a requirement for gender parity in financial institutions[124]. - The Anti-Money Laundering and Terrorism Financing Regime was established to combat illicit financial activities, with the UIF designated as the enforcement authority[125]. - The UIF updated provisions regarding Politically Exposed Persons (PEPs) with Resolution 35/2023, effective April 1, 2023, requiring risk evaluation after a two-year PEP status[132]. - The Central Bank has established a framework for Fintech operations, defining Payment Service Providers and regulating their activities[146]. - The Central Bank and CNV are designated as "Specific Control Agencies" to oversee compliance with AML/CFT procedures, with the authority to supervise and inspect reporting subjects[152]. - Resolution UIF 14/2023, effective from April 1, 2023, nullifies previous regulations and establishes new guidelines for managing money laundering and terrorist financing risks[152]. - Financial institutions are prohibited from maintaining anonymous accounts or accounts under fictitious names, with explicit measures required for foreign Politically Exposed Persons (PEPs)[152]. Economic Conditions - The inflation rate for the fiscal year ended December 31, 2022, was 94.79%, compared to 50.94% in 2021 and 36.14% in 2020[206]. - The Argentine economy has experienced significant volatility, characterized by high inflation and currency devaluation, affecting overall growth prospects[201]. - High inflation levels in Argentina could have long-term adverse consequences for the economy[223]. - The Argentine economy is vulnerable to external shocks, including geopolitical tensions and global economic instability, which could negatively impact capital flows[215]. - The purchasing power of wages in Argentina decreased by approximately 2.43 points from January to December 2022, reflecting the impact of high inflation[230]. - Consumer price inflation in Argentina was 94.8% in 2022, with estimates for 2023 projected at 110%[251]. - The gap between the official exchange rate and informal rates has widened to around 100% due to exchange controls[248]. Financial Performance - As of December 31, 2022, Banco Macro had total assets of Ps. 2,090,120.2 million (U.S.$ 11,800.0 million) and total loans of Ps. 598,600.9 million (U.S.$ 3,379.5 million)[282]. - The bank's total deposits reached Ps. 1,295,395.1 million (U.S.$ 7,313.3 million) with approximately 4.6 million retail customers and 0.1 million corporate customers[282]. - Banco Macro's shareholders' equity increased from Ps. 445,581 million in 2020 to Ps. 512,229 million in 2022, reflecting a growth of 14.8%[283]. - The bank's competitive position includes being ranked first in terms of branches and second in terms of equity among private banks in Argentina as of September 30, 2022[282]. - The bank's strategy focuses on increasing fee income and loan origination targeting low- and middle-income individuals and SMEs, which are vulnerable to economic recessions[293]. Government Policies - The Argentine government reinstated exchange controls on September 1, 2019, affecting access to the foreign exchange market for various purposes[174]. - The Argentine government has implemented various monetary and fiscal measures to mitigate the adverse effects of the COVID-19 pandemic, including lower reserve requirements and tax reductions[255]. - The fiscal deficit of the Argentine government was Ps. 1,955,140.8 million in 2022, up from Ps. 1,407,641 million in 2021, indicating a significant increase in public expenditure[252]. - Public spending rose to Ps. 13,191,168 million in 2022, compared to Ps. 7,733,816 million in 2021, reflecting a substantial increase in government financial commitments[252]. Shareholder Information - Significant shareholders, Security Trust JHB BMA and DelfĂ­n Jorge Ezequiel Carballo, own a combined total of 110,473,881 Class B shares, which could influence major decisions within the company[265]. - Shareholders may have preemptive rights to subscribe to new shares during capital increases, but U.S. holders of Class B shares or ADSs may not exercise these rights unless a registration statement is effective[301]. Market Conditions - The bank does not expect the recent instability in the global banking system to negatively impact its operations[202]. - Changes in liquidity conditions in the Argentine financial system could adversely affect the company's business performance and funding sources[272]. - The trading prices of ADSs and Class B shares may differ across markets, potentially leading to arbitrage opportunities and unexpected volatility[302]. - A significant portion of the company's assets is located outside the United States, complicating the enforcement of U.S. court judgments against the company or its directors[304].
Banco Macro S.A.(BMA) - 2022 Q4 - Earnings Call Transcript
2023-02-24 19:43
Financial Data and Key Metrics Changes - In Q4 2022, net operating income before general, administrative, and personnel expenses was Ps.131.3 billion, an 8% decrease quarter-on-quarter [5] - For fiscal year 2022, net operating income before general, administrative, and personnel expenses totaled Ps.498.2 billion, a 36% increase year-on-year [6] - Net income for Q4 2022 was Ps.16.6 billion, a 59% increase from Q3 2022 but a 19% decrease year-on-year [27] - The efficiency ratio improved to 28.6% in Q4 2022 from 29.1% in Q3 2022 [13] Business Line Data and Key Metrics Changes - Net interest income in Q4 2022 was Ps.83.6 billion, a 12% increase quarter-on-quarter and a 20% increase year-on-year [7] - Interest on loans increased by 7% quarter-on-quarter and 21% year-on-year, representing 35% of total interest income in Q4 2022 [8] - Net fee income totaled Ps.17 billion in Q4 2022, a 2% increase from Q3 2022, remaining unchanged year-on-year [33] Market Data and Key Metrics Changes - Banco Macro's market share of private sector loans reached 7.4% as of December 2022 [15] - The bank's market share of private sector deposits was 6.3% as of December 2022 [16] - Total deposits decreased by 2% quarter-on-quarter but increased by 13% year-on-year [38] Company Strategy and Development Direction - The bank aims to optimize its excess capital of Ps.410 billion, with a total regulatory capital ratio of 39.9% and a Tier 1 ratio of 36.6% [17] - The strategy is to focus on public sector assets due to high inflation and low private sector demand, with plans to return to private sector loan demand as the economic scenario improves [64] Management Comments on Operating Environment and Future Outlook - Management expects inflation in 2023 to remain similar to 2022 levels, with no short-term movement in interest rates anticipated [44] - The political outlook is uncertain, with potential candidates for the upcoming elections still being discussed, and management believes the new administration will face a tougher scenario than in 2015 [60][68] Other Important Information - The effective tax rate for fiscal year 2022 was 31.1%, significantly higher than the 5.8% in fiscal year 2021 due to inflation adjustments [14] - The bank's non-performing loans ratio improved to 1.25%, with a coverage ratio of 151.7% [16] Q&A Session Summary Question: What is the political and macro outlook? - Management indicated that it is early to discuss potential presidential candidates, with primary elections in August [69] Question: How should we think about loan growth in 2023? - Loan growth is expected to be flat in real terms, with inflation likely to remain high [21][44] Question: Can you explain the mechanics of mark-to-market in government securities? - Management confirmed that mark-to-market is done mechanically and is reflected in the income statement [49] Question: What is the expected ROE for 2023? - Management aims to maintain an ROE around 10% for the year, barring any unusual events [70] Question: How does the bank plan to utilize its excess capital? - The bank is inclined to distribute part of its excess capital but also wants to retain some for potential future opportunities [61]
Banco Macro S.A.(BMA) - 2022 Q3 - Earnings Call Transcript
2022-11-28 20:59
Banco Macro S.A. (NYSE:BMA) Q3 2022 Earnings Conference Call November 28, 2022 11:00 AM ET Company Participants Nicolas Torres - Investor Relations Jorge Scarinci - Chief Financial Officer Conference Call Participants Alonso Garcia - Credit Suisse Nicolas Riva - Bank of America Alejandra Aranda - Itau Carlos Gomez - HSBC Santiago Petri - Franklin Templeton Operator Good morning ladies and gentlemen, and thank you for waiting. At this time, we would like to welcome everyone to Banco Macro's Third Quarter 202 ...
Banco Macro S.A.(BMA) - 2022 Q3 - Quarterly Report
2022-09-29 16:00
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 September 29, 2022 Commission File Number: 001-32827 MACRO BANK INC. (Translation of registrant's name into English) Av. Eduardo Madero 1182 Buenos Aires C1106ACY Tel: 54 11 5222 6500 (Address of registrant's principal executive of ices) Indicate by check mark whether the registrant files or will file annual reports under cover of For ...
Banco Macro S.A.(BMA) - 2022 Q2 - Earnings Call Transcript
2022-08-25 16:44
Financial Data and Key Metrics Changes - Banco Macro's net income for Q2 2022 was ARS 4 billion, which is 41% lower than Q1 2021 and 45% lower than the same quarter last year [5] - The annualized ROE and ROA for Q2 2022 were 5.1% and 1.3%, respectively, indicating the bank's earnings potential remains healthy [5] - Net operating income before general and administrative expenses was ARS 81.3 billion, ARS 6 billion higher quarter-on-quarter and increased by 26% or ARS 16.6 billion year-on-year [6] Business Line Data and Key Metrics Changes - Net interest income totaled ARS 53.1 billion, an increase of 8% or ARS 4 billion from Q1 2022 and 27% or ARS 11.3 billion from Q2 2021 [7] - Net fee income for Q2 2022 was ARS 11.9 billion, slightly lower than Q1 2022 but up 8% or ARS 842 million year-on-year [13] - Other operating income increased by 68% year-on-year to ARS 3.9 billion [15] Market Data and Key Metrics Changes - Banco Macro's market share of private sector loans as of June 2022 was 7.2% [21] - Total deposits reached ARS 858.2 billion, an increase of 8% or ARS 63.4 billion quarter-on-quarter and 65% or ARS 50.9 billion year-on-year [22] - The bank's market share of private sector deposits was 5.9% as of June 2022 [23] Company Strategy and Development Direction - The bank aims to optimize its deposit base and improve efficiency standards while maintaining a solid financial position [27] - The bank has excess capital of ARS 284.3 billion, with a total regulated capital ratio of 40.5% and a Tier 1 ratio of 35.9% [25] Management's Comments on Operating Environment and Future Outlook - Management expects inflation in Argentina to range between 85% to 95% for 2022, with nominal interest rates likely to increase slightly by year-end [29] - Loan growth is anticipated to align with inflation rates, indicating a sluggish demand for loans [31] - The target for ROE by year-end is around 10% [32] Other Important Information - The efficiency ratio deteriorated to 31.3% from 29.6% in Q1 2022, with expenses increasing by 20% [17] - The bank's non-performing loans ratio was 0.25%, with a coverage ratio of 159.7% [24] Q&A Session Summary Question: Macro outlook on inflation and interest rates - Management expects inflation to be between 85% to 95% and slight increases in nominal interest rates by year-end [29] Question: Loan growth expectations - Loan growth is expected to be similar to inflation rates, indicating no major positive increase anticipated [31] Question: Target ROE for the year - The target for ROE is around 10% by year-end [32] Question: 2026 bond tender offer considerations - Management indicated that they would need permission from the Central Bank for any tender or buyback [36] Question: Exposure to the public sector and Leliqs - Management expressed confidence in the low risk of restructuring and the ability to manage exposure to the public sector [38]