Banco Macro S.A.(US:BMA)2025-12-01 17:00Financial Data and Key Metrics Changes - In Q3 2025, Banco Macro reported a net income loss of ARS 33.1 billion, a decrease of ARS 191.5 billion from the previous quarter, primarily due to higher loan loss provisions and administrative expenses [3] - Total comprehensive income for the quarter was an ARS 28.4 billion loss, with net income for the first nine months of 2025 totaling ARS 176.7 billion, down 35% year-on-year [3] - The annualized ROE and ROA as of Q3 2025 were 4.5% and 1.5%, respectively [3] Business Line Data and Key Metrics Changes - Net operating income before general and administrative expenses was ARS 779.6 billion, down 23% from Q2 2025 and down 29% year-on-year [4] - Provision for loan losses increased to ARS 156.8 billion, up 45% from Q2 2025 and up 424% year-on-year [4] - Net interest income totaled ARS 686.2 billion, a decrease of 7% from Q2 2025 and 8% year-on-year [4] - Net fee income was ARS 177.3 billion, down 7% from Q2 2025 but up 14% year-on-year [10] Market Data and Key Metrics Changes - Total financials reached ARS 10.1 trillion, increasing 3% quarter-on-quarter and 69% year-on-year [13] - Private sector loans increased 3% quarter-on-quarter and 67% year-on-year, with commercial loans showing significant growth [14] - Total deposits increased 5% quarter-on-quarter and 11% year-on-year, with demand deposits leading the growth [16] Company Strategy and Development Direction - The bank aims to utilize its excess capital of ARS 3.3 trillion for potential M&A opportunities, with a capital adequacy ratio of 29.9% [17] - The strategy includes a focus on both commercial and consumer loan growth, with expectations of a 35% real growth in loans for 2026 [25] - The bank's market share in private sector loans reached 9% as of September 2025, with a focus on maintaining a well-optimized deposit base [16] Management's Comments on Operating Environment and Future Outlook - Management indicated that the delinquency rate was higher than expected, leading to increased provisions [20] - For 2026, the bank forecasts loan growth of 35% in real terms and deposits to grow around 25% in real terms, with an expected ROE in the low 10s [21] - The peak in non-performing loans (NPLs) is anticipated to occur between October and November 2025, with a cost of risk expected to decrease to around 5% in 2026 [23] Other Important Information - The bank's non-performing total finance ratio reached 3.02%, with a coverage ratio of 120.87% [17] - Employee benefits increased by 20% due to provisions for early retirement plans, impacting administrative expenses [12] - The bank's liquidity ratios remain strong, with a liquid assets to total deposit ratio of 67% [17] Q&A Session Summary Question: Was the result worse than anticipated? - Management acknowledged that the results were impacted by higher provisions and unexpected expenses, along with bond price performance [20] Question: What are the expectations for loan growth and returns next year? - The bank forecasts a 35% real growth in loans and a low 10s ROE for 2026 [21] Question: What additional expenses were incurred? - The unexpected expenses were primarily related to early retirement plans [22] Question: When is the peak of NPLs expected? - The peak is anticipated to occur between October and November, with a cost of risk of 6.5% in Q3 [23] Question: What is the plan for the $400 million bond maturing in 2026? - Management stated that various options are being considered, including potential bond issuance or cancellation [39]