Financial Data and Key Metrics Changes - In Q4 2024, Banco Macro's net income totaled ARS 102.2 billion, a 4% increase or ARS 3.5 billion higher than Q3 2024 [4] - The annualized return on average equity was ARS 7.5 and the return on average assets was ARS 2.4 [5] - For fiscal year 2024, net income was ARS 325.1 billion, a 70% decrease compared to fiscal year 2023 [5] - Total comprehensive income for fiscal year 2024 was ARS 227.7 billion, down 83% from fiscal year 2023 [5] Business Line Data and Key Metrics Changes - Net interest income in Q4 2024 was ARS 532.6 billion, a 13% decrease or ARS 82.2 billion lower than Q3 2024 [8] - Provision for loan losses in Q4 2024 totaled ARS 37.5 billion, a 50% increase or ARS 12.7 billion higher than Q3 2024 [6] - Net fee income in Q4 2024 was ARS 139.9 billion, a 6% increase or ARS 7.6 billion higher than Q3 2024 [12] - Income from financial assets and liabilities at fair value totaled ARS 134.9 billion in Q4 2024, a 21% increase compared to Q3 2024 [13] Market Data and Key Metrics Changes - Total financial loans reached ARS 5.8 trillion, an 18% increase or ARS 884.1 billion quarter on quarter and a 45% increase year on year [18] - Private sector deposits increased by 2% quarter on quarter, while public sector deposits decreased by 40% [20] - The nonperforming loans ratio reached 1.28%, with a coverage ratio of 158.81% [21] Company Strategy and Development Direction - The bank aims to utilize its excess capital of ARS 2.8 trillion effectively, with a capital adequacy ratio of 32.4% [22] - The strategy includes increasing lending to the private sector, with an expected loan growth of 60% in real terms for 2025 [28] - The bank anticipates a decrease in the securities portfolio from 27% to around 20% of total assets by the end of 2025 [38] Management's Comments on Operating Environment and Future Outlook - The management expects GDP growth of 5.5% in 2025, with inflation projected at 25% [26] - The return on equity (ROE) is forecasted to range from 12% to 15% in 2025, recovering from a challenging 2024 [28] - Cost of risk in 2025 is expected to be above 2%, potentially reaching 2.5% due to increased lending [30] Other Important Information - The effective income tax rate for fiscal year 2024 was 9.2%, significantly lower than the previous year's 32.7% [17] - The bank's liquidity remains strong, with a liquid assets to certain deposits ratio of 79% [22] 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 2% in 2024, with a growth forecast of 5.5% for 2025 and inflation around 25% [26][27] Question: What are the ROE expectations for this year and the drivers for earnings growth? - ROE is forecasted to be between 12% and 15% in 2025, driven by increased lending and improved economic conditions [28][29] Question: Can you elaborate on asset quality and cost of risk for 2025? - The cost of risk is expected to be above 2%, with a potential increase in nonperforming loans due to higher lending [30] 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 the end of 2025, with loan growth primarily funded by deposit growth [38] Question: What is the strategy to compete for deposits in 2025? - The bank anticipates competition for deposits, with expected growth in peso deposits and a potential increase in interest rates [51] Question: Are there any upcoming management changes at the bank? - Management changes are anticipated, particularly regarding the new CEO, with announcements expected soon [59]
Banco Macro S.A.(BMA) - 2024 Q4 - Earnings Call Transcript