Banco Macro S.A.(US:BMA)2024-08-02 19:26Financial Position - Total assets as of March 31, 2024, amounted to 9,998,065,767 thousand pesos, a decrease from 10,187,584,350 thousand pesos as of December 31, 2023, representing a decline of approximately 1.86%[12] - Total liabilities decreased from 7,087,477,882 thousand pesos as of December 31, 2023, to 6,637,690,706 thousand pesos as of March 31, 2024, representing a reduction of approximately 6.35%[13] - Total shareholders' equity increased from 3,100,106,468 thousand pesos as of December 31, 2023, to 3,360,375,061 thousand pesos as of March 31, 2024, reflecting a growth of approximately 8.4%[13] - Total consolidated assets as of March 31, 2024, amount to 9,998,065,767 thousand pesos, an increase from 10,187,584,350 thousand pesos as of December 31, 2023[62] - The total liabilities as of March 31, 2024, are 6,637,690,706 thousand pesos, compared to 7,087,477,882 thousand pesos at the end of 2023, indicating a decrease[62] - Equity attributable to the owners of the Bank increased to 3,360,113,431 thousand pesos as of March 31, 2024, from 3,099,400,076 thousand pesos as of December 31, 2023, reflecting a growth of approximately 8.4%[62] Cash and Liquidity - Cash and deposits in banks decreased to 1,149,471,536 thousand pesos from 1,824,170,723 thousand pesos, a reduction of about 37.0%[12] - The cash and cash equivalents at the end of the period were 1,514,831,816 thousand pesos in 2024, down from 3,706,104,818 thousand pesos in 2023, indicating a decrease in liquidity[26][28] - Cash flows from operating activities decreased to 27,607,098 thousand pesos in 2024 from 706,200,540 thousand pesos in 2023, reflecting a substantial decline[24][26] Income and Earnings - Net interest income for the quarter ended March 31, 2024, was 167,514,833 thousand pesos, down 55.8% from 378,800,894 thousand pesos in the same quarter of 2023[15] - Net income for the period attributable to controlling interests increased significantly to 275,419,727 thousand pesos for the quarter ended March 31, 2024, compared to 37,868,540 thousand pesos in the same quarter of 2023, marking a growth of 627.5%[17] - Basic earnings per share rose to 430.7384 pesos for the quarter ended March 31, 2024, compared to 59.2239 pesos in the same quarter of 2023, reflecting a substantial increase of 627.5%[17] - Total comprehensive income for the period was 260,529,093 thousand pesos, a significant increase from 34,696,258 thousand pesos in the same quarter of 2023[20] - The company reported a net operating income of 1,620,119,691 thousand pesos for the quarter ended March 31, 2024, compared to 650,841,715 thousand pesos in the same quarter of 2023, indicating a growth of 148.5%[15] Expenses and Losses - Employee benefits expenses increased to 133,391,711 thousand pesos in the quarter ended March 31, 2024, from 91,025,551 thousand pesos in the same quarter of 2023, representing a rise of 46.5%[15] - The company experienced a credit loss expense on financial assets of 18,857,427 thousand pesos for the quarter ended March 31, 2024, compared to 13,492,348 thousand pesos in the same quarter of 2023, an increase of 39.5%[15] - The total loss from operations was 30,816 thousand pesos, highlighting challenges in profitability[199] Loans and Financing - Loans and other financing decreased to 2,500,584,654 thousand pesos from 2,780,228,296 thousand pesos, reflecting a decline of approximately 10.1%[12] - Non-financial private sector loans decreased to 2,478,130,098 thousand pesos from 2,757,967,464 thousand pesos, a decrease of approximately 10.1%[12] - The allowance for expected credit losses (ECL) on loans and other financing was 69,202,619 thousand pesos as of March 31, 2024, compared to 81,341,779 thousand pesos as of December 31, 2023, representing a reduction of approximately 15%[114] - The total performing loans amounted to 2,569,787,273, with a performing rate of 95.93%[117] - The total impaired loans reached 26,194,488, accounting for 1.02% of the total loan portfolio[117] Investments and Acquisitions - The company made an acquisition of 100% of Macro Agro SAU for USD 5,218,800, enhancing its position in the grain brokerage sector[33] - The fair value of net assets acquired from Macro Agro SAU amounted to USD 1,642,857, with goodwill generated from the acquisition totaling USD 515,451[167] - The total price for the Banco Itaú acquisition was established at USD 50,000,000, with an additional adjustment amounting to USD 7,564,706 expected in May 2024[179] - The estimated gain from the acquisition of Banco BMA SAU was recorded at 237,694,794, reflecting the excess of net assets acquired over the purchase price[182] Market Strategy and Operations - Banco Macro SA's market strategy continues to focus on regional areas outside Buenos Aires, aiming to strengthen its multiservice banking capabilities[31][32] - The company has a consolidated equity interest of 10.6228% in Play Digital SA, aimed at improving payment solutions for users[32] - The merger of Banco BMA SAU into Banco Macro SA is in process, with retroactive incorporation effective January 1, 2024[184] Regulatory and Accounting Standards - The Bank's financial statements are prepared in accordance with the accounting framework established by the BCRA, based on IFRS standards[47] - If IFRS 9 had been fully applied, the Bank would have recorded a decrease in "Other operating income" of 2,012,244 thousand pesos for the period ended March 31, 2024[51] - The Bank has adopted amendments to IFRS 16 regarding sale and leaseback transactions, effective January 1, 2024, with no material impact on the financial statements[90] Related Party Transactions - Related party transactions were conducted under normal market conditions, ensuring compliance with standard pricing and interest rates[200] - The company reported total income from related party transactions of 2,844,589 thousand pesos for the three-month period ended March 31, 2024[197]