#Argentina #Buenos Aires #Banco Macro #S.A. #Argentine pesos

Banco Macro's First Quarter Results for 2025

Banco Macro, one of Argentina's leading banks, recently released its financial results for the first quarter ending March 31, 2025. This announcement reflects a challenging economic environment impacting its performance, with adjustments made for inflation in previous reporting periods. The results, measured in Argentine pesos (Ps.), show a marked drop in net income compared to previous quarters.

Financial Highlights

In the first quarter, Banco Macro reported a net income of Ps. 45.7 billion, indicating a 59% decrease, or a drop of Ps. 65.3 billion, compared to the fourth quarter of 2024. The annualized return on average equity (ROAE) was recorded at 3.8%, while the annualized return on average assets (ROAA) stood at 1.2%. These figures underscore the financial pressures the bank is currently facing.

The bank's operating income before general and administrative (GA) expenses and personnel costs totaled Ps. 801 billion, a reduction of 9% or Ps. 82.6 billion from the previous quarter. Comparatively, this figure reflects a 68% reduction or Ps. 1.7 trillion less than the same quarter last year.

After accounting for GA and personnel expenses, the operating income was reported at Ps. 347.8 billion, marking 11% lower or Ps. 43 billion drop compared to the previous quarter and an 82% decrease or Ps. 1.6 trillion from the prior year.

Growth in Financing and Deposits

Despite these declines in income, Banco Macro demonstrated robust growth in total financing, which increased by 22% or Ps. 1.4 trillion quarter-over-quarter, reaching a total of Ps. 7.7 trillion. Year-over-year, this figure has risen by 97% or Ps. 3.8 trillion. The increase in financing occurred in both local currency and USD, with rises of 21% and 22%, respectively.

In terms of deposits, Banco Macro reported a 5% increase or Ps. 485.4 billion from the previous quarter and a 23% year-over-year rise, totaling Ps. 9.6 trillion. Notably, private sector deposits grew by 4%, translating to Ps. 349.6 billion quarter-over-quarter. Although Peso deposits grew significantly by 15%, there was a notable 17% decrease in USD deposits during this period.

Solvency and Asset Quality

The bank's solvency remains strong, with an excess capital of Ps. 3.2 trillion and a capital adequacy ratio of 34.3% under Basel III standards, alongside a Tier 1 ratio of 33.6%. This indicates that, while operating income has decreased, Banco Macro continues to uphold a solid financial foundation.

Liquidity was also adequately managed, with liquid assets accounting for 68% of total deposits in Q1 2025. Furthermore, the non-performing loans ratio stood at 1.44%, and the coverage ratio reached 163.34%, suggesting the bank is effectively managing credit risk.

Customer Base and Strategic Outlook

As of the end of Q1 2025, Banco Macro operated through 505 branches and employed 8,903 individuals, serving around 6.23 million retail customers, of which 2.6 million are digital users. The bank also caters to over 205,816 corporate clients across 23 out of 24 provinces in Argentina.

Looking ahead, Banco Macro will host a conference call to discuss its first quarter earnings on May 29, 2025, at 11:00 AM Eastern Time. The bank’s IR contacts are available for further inquiries.

Conclusion

Banco Macro's first quarter results exhibit the impacts of the prevailing economic landscape in Argentina. While challenges persist, the bank's strong capital position and growth in financing and deposits provide a foundation for potential recovery and strategic advancements in the upcoming periods.