Banco Macro S.A.(BMA)2025-02-28 13:47Financial Data and Key Metrics Changes - In Q4 2024, Banco Macro's net income reached Ps. 102.2 billion, a 4% increase or Ps. 3.5 billion higher than Q3 2024 [5] - The annualized return on average equity and average assets were 7.5% and 2.4%, respectively [6] - For fiscal year 2024, net income totaled Ps. 325.1 billion, a 74% decrease compared to fiscal year 2023 [6] - Total comprehensive income for fiscal year 2024 was Ps. 227.7 billion, down 83% from fiscal year 2023 [7] Business Line Data and Key Metrics Changes - Net interest income in Q4 2024 was Ps. 532.6 billion, a 13% decrease from Q3 2024 but a 33% increase year-on-year [9] - Net fee income in Q4 2024 totaled Ps. 139.9 billion, a 6% increase from Q3 2024 and an 11% increase year-on-year [17] - Provision for loan losses in Q4 2024 was Ps. 37.5 billion, a 51% increase from Q3 2024 [8] Market Data and Key Metrics Changes - The Argentine peso depreciated 6.3% against the U.S. dollar in Q4 2024 [15] - Total financial loans reached Ps. 5.8 trillion, an 18% increase quarter-on-quarter and a 45% increase year-on-year [27] - Private sector deposits increased 2% quarter-on-quarter, while public sector deposits decreased 40% [31] Company Strategy and Development Direction - Banco Macro aims to utilize its excess capital of Ps. 2.8 trillion effectively, with a capital adequacy ratio of 32.4% [34] - The bank expects to reduce the securities portfolio from approximately 27% of total assets to around 20% by the end of 2025 [57] - The bank's strategy includes increasing lending to the private sector, with a forecasted loan growth of 60% in real terms for 2025 [44] Management's Comments on Operating Environment and Future Outlook - The management anticipates GDP growth of 5.5% in 2025, with inflation expected to decrease to around 25% [41] - The cost of risk for 2025 is projected to be above 2%, potentially reaching 2.5% due to increased lending [47] - The effective income tax rate for fiscal year 2024 was 9.2%, significantly lower than the previous year [26] Other Important Information - The efficiency ratio in Q4 2024 was 39.4%, deteriorating from 36.3% in Q3 2024 [22] - The bank's nonperforming total financial ratio reached 1.28%, with a coverage ratio of 158.81% [33] Q&A Session Summary Question: What are the macro expectations for interest rates, inflation, GDP growth, and FX for this year? - Management expects a GDP decline of close to 2% in 2024, with a growth forecast of 5.5% for 2025 and inflation around 25% [41][42] Question: What are the ROE expectations for this year? - The forecasted ROE for 2025 is between 12% and 15%, driven by increased lending to the private sector [43][44] Question: How should we think about the cost of risk in 2025? - The cost of risk is expected to be above 2%, potentially reaching 2.5% due to increased lending [47] Question: How do you expect the weight of securities to evolve in 2025? - The securities portfolio is expected to decrease to around 20% of total assets by December 2025 [57] Question: What is the strategy to gain share in deposits? - The bank anticipates a 35% real growth in peso deposits, with competition likely leading to some upward pressure on deposit rates [72][73]