Banco Macro S.A.(US:BMA)2025-02-27 17:02Financial 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 70.4% 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 50.1% 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] 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 loans represented 8.3% market share as of December 2024 [19] - Total deposits decreased 3% or ARS 199.3 billion quarter on quarter, totaling ARS 8.4 trillion, but increased 15% or ARS 1.1 trillion year on year [20] 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 plans to reduce its securities portfolio to fund loan growth, with 80% of funding expected from deposit growth and 20% from securities reduction [39] Management's Comments on Operating Environment and Future Outlook - Management expects GDP growth of 5.5% in 2025, with inflation projected at 25% [26] - The cost of risk for 2025 is anticipated to be above 2%, potentially reaching 2.5% due to increased lending [31] - The effective income tax rate for fiscal year 2024 was 9.2%, lower than the previous year's 32.7% [17] Other Important Information - The efficiency ratio reached 39.4%, deteriorating from 36.3% in Q3 2024 [16] - The bank's nonperforming loans ratio was 1.28%, with a coverage ratio of 158.81% [21] - The bank's liquidity ratio of liquid assets to certain deposits was 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? - ROE is forecasted to range from 12% to 15% in 2025, driven by increased lending to the private sector [28] Question: Can you elaborate on asset quality and cost of risk for 2025? - Cost of risk is expected to be above 2%, with NPLs increasing due to higher lending [31] 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 [38] Question: What is the strategy for deposit growth? - The bank anticipates a 30% real growth in deposits for 2025, driven by increased private sector deposits and competition [50] Question: Are there any upcoming management changes? - There will be announcements regarding management changes, specifically related to the new CEO [58]