#Argentina #Buenos Aires #Banco Macro #BMA

Banco Macro's Fourth Quarter 2024 Financial Results

Banco Macro S.A. (NYSE: BMA; BYMA: BMA) announced its financial outcomes for the fourth quarter of 2024, a critical period for the bank as it navigates through the changing economic landscape of Argentina. The report highlights various dimensions of the bank's financial health, including net income, operational income, and deposit trends, offering stakeholders a comprehensive view of its performance.

Key Highlights of Q4 2024 Results

In Q4 2024, Banco Macro reported a net income of Ps.102.2 billion, marking a 4% increase (or Ps.3.5 billion) compared to the previous quarter, Q3 2024. This suggests a stable growth trajectory as the bank continues to adapt to market conditions. The annualized return on average equity (ROAE) stood at 7.5% while the return on average assets (ROAA) was 2.4% for the same period, indicating the bank's efficient use of its resources.

Conversely, the bank's operating income before expenses reached Ps.813.9 billion, down 9% (or Ps.81.9 billion) from Q3 2024 and substantially less than the previous year’s figures by 72% (or Ps.2.1 trillion). When considering expenses, the operational income fell to Ps.359.9 billion, down 17% (or Ps.76.2 billion) from Q3 2024 and a staggering 84% decrease year-over-year.

Strong Financing and Deposit Trends

Despite these setbacks, Banco Macro's total financing shot up by 18% (or Ps.884.1 billion) from the previous quarter, totaling Ps.5.8 trillion, which proved a 45% increase year-over-year (YoY). Notably, in FY 2024, both peso and USD financing increased by 14% and 29%, respectively, a robust performance illustrating the bank’s growing lending capabilities.

In contrast, total deposits saw a decline of 3% (or Ps.299.3 billion) from Q3 2024, although they were still up by 15% (or Ps.1.1 trillion) YoY, totaling Ps.8.4 trillion. This figure now represents 81% of the bank's total liabilities, showcasing the bank's reliance on retail deposits for funding. On the private sector front, deposits increased by 2% (or Ps.147 billion) quarter-over-quarter (QoQ). However, FY 2024 also reported a contrasting trend with peso deposits rising by 2% while USD deposits fell significantly by 18%.

Solvency and Asset Quality

Banco Macro has displayed a strong solvency position, with an excess capital of Ps.2.8 trillion, giving it a Capital Adequacy Ratio of 32.4%, in accordance with Basel III standards, alongside a Tier 1 ratio of 31.6%. The bank maintained a healthy liquidity profile, with liquid assets accounting for 79% of its total deposits by the end of Q4 2024.

The non-performing loan ratio was reported at 1.28%, which is a manageable level, and the coverage ratio stood impressively at 158.8%, reflecting strong risk management protocols in place.

Conclusion and Outlook

Banco Macro’s fourth quarter results reflect both the challenges and strengths faced by the institution in a fluctuating economic environment. With solid growth in net income and robust financing activities, the bank seems well-positioned to tackle future uncertainties. As the institution evolves, it continues to focus on enhancing customer relations, now serving over 6.12 million retail customers and more than 201,233 corporate clients across 23 provinces in Argentina, demonstrating its reach and commitment to its patrons.

The upcoming earnings release conference call on February 27, 2025, will provide further insights into the bank's overall operational strategy and future initiatives.