Banco Macro S.A.(US:BMA)2025-12-01 17:02Financial 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 compared to the previous quarter, primarily due to higher loan loss provisions and administrative expenses [3][4] - 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][4] - 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, a decrease of 23% quarter-on-quarter and 29% year-on-year [4] - Provision for loan losses totaled ARS 156.8 billion, up 45% from the previous quarter and 424% year-on-year [4] - Net interest income was ARS 686.2 billion, down 7% from Q2 2025 and 8% year-on-year [4][5] - Net fee income decreased by 7% quarter-on-quarter but increased by 14% year-on-year [9][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 by 3% quarter-on-quarter and 67% year-on-year, with notable increases in personal and mortgage loans [14][15] - Total deposits increased by 5% quarter-on-quarter and 11% year-on-year, with demand deposits leading the growth [15] Company Strategy and Development Direction - The company aims for loan growth of 35% in real terms for 2026, with deposits expected to grow by 25% in real terms [22][23] - 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 [15][16] - The bank plans to utilize its excess capital of ARS 3.3 trillion for potential M&A opportunities in the next 12-18 months [31] Management Comments on Operating Environment and Future Outlook - Management noted that the increase in provisions was due to a peak in non-performing loans (NPLs) and unexpected additional expenses [22] - The bank expects the peak of NPLs to occur between October and November, with a cost of risk forecasted to be around 5% in 2026 [30] - Management remains optimistic about the stability of new vintages and expects improvements in asset quality [66] Other Important Information - The efficiency ratio deteriorated to 39.1% from 35.9% in the previous quarter, indicating increased operational costs [11] - The bank's liquidity ratios remain strong, with a liquid assets to total deposits ratio of 67% [16] Q&A Session Summary Question: Was the result worse than anticipated? - Management acknowledged that the results were impacted by higher provisions and unexpected expenses, particularly due to an increase in NPLs [22] Question: What are the expectations for loan growth next year? - The bank forecasts a 35% growth in loans and a 25% growth in deposits in real terms for 2026 [23] Question: Can you provide details on the extra expenses? - The additional expenses were primarily related to early retirement plans that were not anticipated [25] Question: When do you expect the peak of NPLs? - Management expects the peak to occur between October and November, with a cost of risk around 6.5% for Q3 [30] Question: What is the plan for the $400 million bond maturing in 2026? - The bank is considering various options, including rolling over the bond or issuing a new senior bond [74] Question: Will there be additional expenses related to early retirement plans? - There could be additional expenses, but it is too early to comment definitively [57]