Banco Macro S.A.(BMA) - 2025 Q1 - Quarterly Report

Financial Position - Total assets as of December 31, 2024, amounted to ARS 14,493,051,515, a decrease of 0.95% from ARS 14,631,695,156 in 2023[13] - Total liabilities rose to ARS 10,441,904,439, reflecting an increase of 2.46% from ARS 10,190,755,268 in 2023[16] - Shareholders' equity decreased to ARS 4,051,147,076 from ARS 4,440,939,888, indicating a reduction of 8.8%[16] - The bank's cash and deposits in banks totaled ARS 2,690,638,558, a slight increase from ARS 2,619,925,301 in the previous year[13] - Total assets of Banco Macro SA as of December 31, 2024, amounted to 14,178,945,690 thousand pesos, a slight decrease from 14,184,633,216 thousand pesos in 2023[96][98] - Total liabilities increased to 10,129,428,138 thousand pesos in 2024 from 9,744,707,860 thousand pesos in 2023, reflecting a growth of approximately 3.95%[96][98] - Shareholders' equity attributable to the owners of the Bank decreased to 4,049,517,552 thousand pesos in 2024 from 4,439,925,356 thousand pesos in 2023, a decline of about 8.8%[96][98] Income and Earnings - Net income for the fiscal year was ARS 324,143,056, a significant decline of 74.5% compared to ARS 1,267,414,513 in 2023[16] - Net income for the fiscal year dropped to $325,132,181 in 2024, down from $1,268,178,306 in 2023, representing a decrease of about 74.4%[20] - Basic earnings per share fell to 506.9385 pesos in 2024 compared to 1,982.1532 pesos in 2023, a decline of approximately 74.5%[22] - Total comprehensive income for the fiscal year was $227,705,778 in 2024, significantly lower than $1,355,649,028 in 2023, reflecting a decrease of around 83.2%[25] Revenue and Expenses - Net interest income decreased to $1,618,126,381 in 2024 from $1,806,019,441 in 2023, a decline of approximately 10.4%[20] - Commissions income rose to $565,100,914 in 2024, up from $535,072,561 in 2023, marking an increase of approximately 5.6%[20] - Employee benefits expense increased to $703,460,074 in 2024 from $606,491,603 in 2023, an increase of about 16%[20] - Other operating income grew to $213,969,463 in 2024, compared to $158,728,540 in 2023, reflecting an increase of approximately 34.8%[20] - Credit loss expense on financial assets was $109,354,813 in 2024, slightly higher than $100,051,121 in 2023, indicating an increase of about 9.3%[20] Cash Flow - Total cash from operating activities increased significantly to 2,002,138,248 compared to a cash outflow of (185,597,941) in the previous year[34] - Cash flows used in investing activities totaled (133,689,800), a decrease from a positive inflow of 177,091,497 in the previous year[37] - Cash flows used in financing activities increased to (592,027,195) from (123,949), indicating a substantial rise in financing outflows[37] - The net decrease in cash and cash equivalents was (151,367,850), a significant improvement from (2,070,614,394) in the previous year[37] Acquisitions and Mergers - The acquisition of Macro Agro SAU was completed on May 18, 2023, enhancing the company's capabilities in grain brokerage[45] - The acquisition of Banco Itaú Argentina SA and its subsidiaries was authorized on November 2, 2023, expanding the company's market presence[46] - The merger with Banco BMA SAU was completed in May 2023, consolidating its financials into the Bank's statements[94] Financial Instruments and Valuation - The financial instruments are classified based on the business model, with specific conditions for measuring at amortized cost or fair value[108][110] - Financial assets at fair value through profit or loss are recognized at fair value, with changes in fair value reported as "Net gain from measurement of financial instruments at fair value through profit or loss" in the income statement[119] - The loss allowance for expected credit losses (ECL) is based on credit losses expected to arise during the life of a financial asset, with 12-month ECL applicable if there is no significant increase in credit risk[135] - The Bank categorizes financial instruments into Stage 1, Stage 2, and Stage 3 based on credit risk, with different ECL calculations for each stage[139] Regulatory and Accounting Standards - The consolidated Financial Statements are prepared in accordance with IFRS Accounting Standards and reflect the changes in purchasing power as of December 31, 2024[61] - The restatement process for financial statements is based on the general price index reflecting changes in purchasing power, as required by IAS 29[72] - The Bank's financial position is presented in order of liquidity, as mandated by BCRA Communiqué "A" 6324[65] Economic Environment - The inflation rates were reported at 117.76% for the fiscal year ended December 31, 2024, and 211.41% for the fiscal year ended December 31, 2023[73] - The Bank's management is confident in its ability to continue as a going concern without any material uncertainties affecting its operations[62]