6-K 1 tm2231295d1_6k.htm FORM 6-K

 

 

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C.  20549

 

 

 

FORM 6-K

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16 UNDER THE

SECURITIES EXCHANGE ACT OF 1934

 

November 23, 2022

 

 

 

Commission File Number: 001-32827

 

 

 

MACRO BANK INC.

(Translation of registrant’s name into English)

 

 

 

Avenida Eduardo Madero 1182

Ciudad Autónoma de Buenos Aires C1106 ACY

Tel: 54 11 5222 6500

 

(Address of registrant’s principal executive offices)

 

 

  

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

 

  Form 20-F x Form 40-F   ¨  

 

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):

 

  Yes ¨ No x  

 

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):

 

  Yes o No x  

 

 

 

 

 

 

 

3Q22 Earnings Release

 

Banco Macro Announces Results for the Third Quarter of 2022

 

Buenos Aires, Argentina, November 23, 2022 – Banco Macro S.A. (NYSE: BMA; BYMA: BMA) (“Banco Macro” or “BMA” or the “Bank”) announced today its results for the third quarter ended September 30, 2022 (“3Q22”). All figures are in Argentine pesos (Ps.) and have been restated in terms of the measuring unit current at the end of the reporting period. As of 1Q20, the Bank began reporting results applying Hyperinflation Accounting, in accordance with IFRS IAS 29 as established by the Central Bank. For ease of comparison, figures of previous quarters of 2022 have been restated applying IAS 29 to reflect the accumulated effect of the inflation adjustment for each period through September 30, 2022.

 

Summary

 

• The Bank’s net income totaled Ps.8.9 billion in 3Q22. This result was 76% higher than the Ps.5.5 billion posted in 2Q22 and 34% lower than the result registered in 3Q21. As of 3Q22, the accumulated annualized return on average equity (“ROAE”) and the accumulated annualized return on average assets (“ROAA”) were 7.7% and 1.9%, respectively.

 

• In 3Q22 Net Operating Income (before G&A and personnel expenses) totaled Ps.121.6 billion, 22% or Ps.22.2 billion higher than in 2Q22 and 54% or Ps.42.6 billion higher than the same period of last year.

 

• In 3Q22 Operating Income (after G&A and personnel expenses) totaled Ps.75.1 billion, 39% or Ps.20.1 billion higher than in 2Q22 and 101% or Ps.37.7 billion higher than the same period of last year.

 

• In 3Q22, Banco Macro’s financing to the private sector decreased 7% or Ps.37.2 billion quarter over quarter (“QoQ”) totaling Ps.506.8 billion and decreased 9% or Ps.53.1 billion year over year (“YoY”).

 

• In 3Q22, Banco Macro’s total deposits increased 7% or Ps.77.7 billion QoQ, totaling Ps.1.1 trillion and representing 84% of the Bank’s total liabilities. Private sector deposits increased 5% or Ps.45.3 billion QoQ.

 

• Banco Macro continued showing a strong solvency ratio, with an excess capital of Ps.351.9 billion, 40.4% regulatory capital ratio – Basel III and 36.1% Tier 1 Ratio. In addition, the Bank’s liquid assets remained at an adequate level, reaching 90% of its total deposits in 3Q22.

 

• In 3Q22, the Bank’s non-performing to total financing ratio was 1.27% and the coverage ratio reached 153.13%.

 

3Q22 Earnings Release Conference CallIR Contacts in Buenos Aires:
  
Monday, November 28, 2022Jorge Scarinci
Time: 11:00 a.m. Eastern Time | 12:00 p.m. Buenos Aires TimeChief Financial Officer
To participate, please dial:  
Argentina Toll Free: Nicolás A. Torres
(011) 3984 5677 Investor Relations
Participants Dial In (Toll Free): 
+1 (844) 450 3847Webcast Replay: click herePhone: (54 11) 5222 6682
Participants International Dial In:E-mail: investorelations@macro.com.ar
+1 (412) 317 6370Available from 11/28/2022 through 12/12/2022 
Conference ID: Banco Macro Visit our website at:
Webcast: click here www.macro.com.ar/relaciones-inversores

 

2 

 

 

3Q22 Earnings Release

 

Disclaimer

 

This press release includes forward-looking statements. We have based these forward-looking statements largely on our current beliefs, expectations and projections about future events and financial trends affecting our business. Many important factors could cause our actual results to differ substantially from those anticipated in our forward-looking statements, including, among other things: inflation; changes in interest rates and the cost of deposits; government regulation; adverse legal or regulatory disputes or proceedings; credit and other risks of lending, such as increases in defaults by borrowers; fluctuations and declines in the value of Argentine public debt; competition in banking and financial services; deterioration in regional and national business and economic conditions in Argentina; and fluctuations in the exchange rate of the peso.

 

The words “believe,” “may,” “will,” “aim,” “estimate,” “continue,” “anticipate,” “intend,” “expect” and similar words are intended to identify forward-looking statements. Forward-looking statements include information concerning our possible or assumed future results of operations, business strategies, financing plans, competitive position, industry environment, potential growth opportunities, the effects of future regulation and the effects of competition. Forward-looking statements speak only as of the date they were made, and we undertake no obligation to update publicly or to revise any forward-looking statements after we distribute this press release because of new information, future events or other factors. In light of the risks and uncertainties described above, the forward-looking events and circumstances discussed in this press release might not occur and are not guarantees of future performance.

 

This report is a summary analysis of Banco Macro's financial condition and results of operations as of and for the period indicated. For a correct interpretation, this report must be read in conjunction with all other material periodically filed with the Comisión Nacional de Valores (www.cnv.gob.ar), the Securities and Exchange Commission (www.sec.gov), Bolsas y mercados Argentinos (www.byma.com.ar) and the New York Stock Exchange (www.nyse.com). In addition, the Central Bank (www.bcra.gov.ar) may publish information related to Banco Macro as of a date subsequent to the last date for which the Bank has published information.

 

Readers of this report must note that this is a translation made from an original version written and expressed in Spanish. Consequently, any matters of interpretation should be referred to the original version in Spanish.

 

3 

 

 

3Q22 Earnings Release

 

This Earnings Release has been prepared in accordance with the accounting framework established by the Central Bank of Argentina (“BCRA”), based on International Financial Reporting Standards (“I.F.R.S.”) and the resolutions adopted by the International Accouting Standards Board (“I.A.S.B”) and by the Federación Argentina de Consejos Profesionales de Ciencias Económicas (“F.A.C.P.E.”). As of January 2020 the Bank started reporting with the application of (i) Expected losses of IFRS 9 “Financial Instruments” and (ii) IAS 29 “Financial Reporting in Hyperinflationary Economies”. Data and figures shown in this Earnings Release may differ from the ones shown in the 20-F annual report. As of fiscal year 2021, the monetary result accrued by items of a monetary nature measured at fair value with changes in Other Comprehensive Income (OCI), is recorded in the Result form the Net Monetary Position integrating the Net Result of the period in accordance with Communication “A” 7211 of the Central Bank of Argentina. Previous quarters of 2021/2 have been restated in accordance with said Communication in order to make a comparison possible.

 

Results

 

Earnings per outstanding share were Ps.13.9 in 3Q22, 76% higher than in 2Q22 and 34% lower than the result posted a year ago.

 

EARNINGS PER SHARE  MACRO Consolidated   Change 
In MILLION $ (Measuring Unit Current at EOP)   3Q21    4Q21    1Q22    2Q22    3Q22    QoQ    YoY 
Net income -Parent Company- (M $)   13,461    17,495    8,596    5,055    8,883    76%   -34%
Average # of shares outstanding (M)   639    639    639    639    639    0%   0%
Average #of treasury stocks (shares repurchased) (M)   0    0    0    -    -    -    -100%
Book value per avg. Outstanding share ($)   592    620    632    648    665    3%   12%
Shares Outstanding (M)   639    639    639    639    639    0%   0%
Earnings per avg.  outstanding share ($)   21.07    27.38    13.45    7.91    13.90    76%   -34%
                                    
EOP FX (Pesos per USD)   98.7350    102.7500    110.9783    125.2150    147.3150    18%   49%
Book value per avg. issued ADS (USD)   59.96    60.34    56.95    51.75    45.14    -13%   -25%
Earnings per avg. outstanding ADS (USD)   2.13    2.66    1.21    0.63    0.94    49%   -56%

 

Banco Macro’s 3Q22 net income of Ps.8.9 billion was 76% or Ps.3.8 billion higher than the previous quarter and 34% or Ps.4.6 billion lower YoY. This result represented an accumulated annualized ROAE and ROAA of 7.7% and 1.9% respectively.

 

Net operating income (before G&A and personnel expenses) was Ps.121.6 billion in 3Q22, 22% or Ps.22.2 billion higher compared to 2Q22 due to higher income from financial instruments at fair value through P&L and higher fx gains. On a yearly basis Net operating income increased 54% or Ps.42.6 billion.

 

In 3Q22 Provision for loan losses totaled Ps.1.4 billion, increasing 51% or Ps.483 million compared to the previous quarter. On a yearly basis, Provision for loan losses increased 268% or Ps.1 billion.

 

Operating income (after G&A and personnel expenses) was Ps.75.1 billion in 3Q22, 39% or Ps.20.9 billion higher than in 2Q22 and 101% or Ps.37.7 billion higher than a year ago.

 

It is important to emphasize that this result was obtained with a leverage of only 4.4x assets to equity ratio.

 

4 

 

 

3Q22 Earnings Release

 

INCOME STATEMENT  MACRO Consolidated  Change 
In MILLION $ (Measuring Unit Current at EOP)  3Q21  4Q21  1Q22  2Q22  3Q22  QoQ   YoY 
Net Interest Income  54,446  59,321  59,992  65,553  63,488  -3%  17%
Net fee income  14,322  14,548  14,617  14,557  14,242  -2%  -1%
Net Interest Income + Net Fee Income  68,768  73,869  74,609  80,110  77,730  -3%  13%
Net Income from financial instruments
 at fair value through P&L		  6,327  5,875  9,125  9,006  25,531  183%  304%
Income from assets at amortized cost  0  151  0  0  0  0%  0%
Differences in quoted prices of gold
 and foreign currency		  1,083  2,657  4,414  6,562  16,030  144%  1380%
Other operating income  3,228  3,303  4,744  4,656  3,745  -20%  16%
Provision for loan losses  387  3,260  1,066  942  1,425  51%  268%
Net Operating Income  79,019  82,595  91,826  99,392  121,611  22%  54%
Employee benefits  16,516  16,153  14,039  18,478  17,655  -4%  7%
Administrative expenses  8,223  9,793  7,890  8,326  8,295  0%  1%
Depreciation and impairment of assets  3,033  3,074  3,136  3,223  3,287  2%  8%
Other operating expenses  13,804  16,409  14,484  15,142  17,275  14%  25%
Operating Income  37,443  37,166  52,277  54,223  75,099  39%  101%
Result from associates & joint ventures  -2  58  -51  -49  -97  -   - 
Result from net monetary postion  -23,458  -25,206  -41,375  -46,592  -58,335  25%  149%
Result before taxes from continuing operations  13,983  12,018  10,851  7,582  16,667  120%  19%
Income tax  522  -5,477  2,255  2,527  7,784  208%  1391%
Net income from continuing operations  13,461  17,495  8,596  5,055  8,883  76%  -34%
      -  -              
Net Income of the period  13,461  17,495  8,596  5,055  8,883  76%  -34%
Net income of the period attributable
 to parent company		  13,461  17,496  8,613  5,059  8,865  75%  -34%
Net income of the period attributable
 to minority interest		  -  -1  -17  -4  18  -   - 
Other Comprehensive Income  105  115  -855  -3,834  2,079  -   - 
Foreign currency translation differences in
financial statements conversion		  -337  -320  -369  -189  -178  -   - 
Profits or losses from financial assets measured
at fair value  through other comprehensive income
(FVOCI)  (IFRS 9(4.1.2)(a)		  442  435  -486  -3,645  2,257  -162%  411%
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD  13,566  17,610  7,741  1,221  10,962  798%  -19%
Total Comprehensive Income attributable
to parent Company		  13,566  17,611  7,758  1,225  10,944  793%  -19%
Total Comprehensive Income attributable
to non-controlling interests		  -  -1  -17  -4  18  -   - 

 

The Bank’s 3Q22 net interest income totaled Ps.63.5 billion, 3% or Ps.2.1 billion lower than in 2Q22 but 17% or Ps.9 billion higher YoY.

 

In 3Q22 interest income totaled Ps.137.2 billion, 17% or Ps.20 billion higher than in 2Q22 and 50% or Ps. 45.8 billion higher than in 3Q21.

 

Income from interest on loans and other financing totaled Ps.55.5 billion, 9% or Ps.4.6 billion higher compared to the previous quarter, due to a 324 b.p increase in the average lending rates. On a yearly basis, Income from interest on loans increased 22% or Ps.9.8 billion.

 

In 3Q22 income from government and private securities increased 19% or Ps.12.2 billion QoQ and increased 86% or Ps.36 billion compared with the same period of last year. This result is explained 14% by income from government and private securities through other comprehensive income (Leliqs and Other government securities) and the remaining 86% is explained by income from sovereign bonds at amortized cost.

 

5 

 

 

 

3Q22 Earnings Release

 

In 3Q22, income from Repos totaled Ps.3.9 billion, 358% or Ps.3 billion higher than the previous quarter and 3% or Ps.107 million lower than a year ago.

 

In 3Q22 FX income totaled Ps.16 billion, 144% or Ps.9.5 billion higher than the previous quarter and Ps.15 billion higher than a year ago, due to the Bank’s long dollar position, and a 18% depreciation in the quarter of the Argentine peso against the US dollar.

 

FX INCOME  MACRO Consolidated  Variation 
In MILLION $ (Measuring Unit Current at EOP)  3Q21  2Q22    3Q22  QoQ   YoY 
(1) Differences in quoted prices of  gold and foreign currency  1,083  6,562    16,030  144%  1381%
Translation of FX assets and liabilities to Pesos  840  6,381    15,699  146%  1769%
Income from foreign currency exchange  243  181    332  83%  37%
                    
(2) Net Income from financial assets and liabilities at fair value through P&L  -  9    105  -   - 
Income from investment in derivative financing instruments  -  9    105  -   - 
                    
(1) +(2) Total Result from Differences in quoted prices of gold and foreign currency  1,083  6,562    16,030  144%  1381%

 

INTEREST INCOME  MACRO Consolidated  Change 
In MILLION $ (Measuring Unit Current at EOP)  3Q21  4Q21  1Q22  2Q22  3Q22  QoQ   YoY 
Interest on Cash and due from Banks  5  5  4  19  97  411%  1840%
Interest from government securities  41,604  42,483  49,439  65,438  77,676  19%  87%
Interest from private securities  80  64  36  27  33  22%  -59%
Interest on loans and other financing                       
             To the financial sector  254  231  132  96  83  -14%  -67%
             To the public non financial sector  659  516  395  313  298  -5%  -55%
             Interest on overdrafts  3,319  3,411  3,626  4,695  6,542  39%  97%
             Interest on documents  4,238  4,978  4,365  4,528  6,171  36%  46%
             Interest on mortgages loans  5,489  6,323  6,688  8,571  8,503  -1%  55%
             Interest on pledged loans  468  761  742  669  604  -10%  29%
             Interest on personal loans  19,422  20,207  19,750  19,326  18,579  -4%  -4%
             Interest on credit cards loans  5,882  6,795  7,270  7,802  8,661  11%  47%
             Interest on financial leases  -2  63  65  56  75  34%  -3850%
             Interest on other loans  5,889  5,833  5,377  4,761  5,933  25%  1%
Interest on Repos                       
             From the BCRA  4,001  2,790  569  703  3,832  445%  -4%
             Other financial institutions  10  14  50  150  72  -52%  620%
Total Interest income  91,318  94,474  98,508  117,154  137,159  17%  50%
                        
Income from Interest on loans  45,618  49,118  48,410  50,817  55,449  9%  22%

 

The Bank’s 3Q22 interest expense totaled Ps.73.7billion, increasing 43% or Ps.22.1 billion compared to the previous quarter and 100% or Ps.36.8 billion higher compared to 3Q21.

 

In 3Q22, interest on deposits represented 98% of the Bank’s total interest expense, increasing 45% or Ps.22.4 billion QoQ, due to a 950 b.p. increase in the average rate paid on deposits while the average volume of deposits from the private sector increased 8%. On a yearly basis, interest on deposits increased 106% or Ps.37.2 billion.

 

6

 

 

3Q22 Earnings Release

 

INTEREST EXPENSE  MACRO Consolidated  Change 
In MILLION $ (Measuring Unit Current at EOP)  3Q21  4Q21  1Q22  2Q22  3Q22  QoQ   YoY 
Deposits                       
Interest on checking accounts  179  236  616  1,614  3,359  108%  1777%
Interest on saving accounts  476  506  562  819  906  11%  90%
Interest on time deposits  34,484  32,911  35,700  47,472  68,034  43%  97%
Interest on other financing from BCRA and financial inst.  42  34  64  88  119  35%  183%
Repos                       
Other financial institutions  135  100  311  390  87  -78%  -36%
Interest on corporate bonds  201  184  160  69  11  -84%  -95%
Interest on subordinated bonds  1,342  1,175  1,039  984  959  -3%  -29%
Interest on other financial liabilities  13  7  64  165  196  19%  1408%
Total financial expense  36,872  35,153  38,516  51,601  73,671  43%  100%
                        
Expenses from interest on deposits  35,139  33,653  36,878  49,905  72,299  45%  106%

 

In 3Q22, the Bank’s net interest margin (including FX) was 28.1%, higher than the 24.7% posted in 2Q22 and the 19.1% posted in 3Q21.

 

In 3Q22, Net Interest Margin (excluding FX) was 22.5%, unchanged from the one posted in 2Q22 and higher than the 18.7% posted in 3Q21.

 

In 3Q22 Net Interest Margin (Pesos) was 24.5%, lower than the 25.1% posted in 2Q22 but higher than the 20.8% posted in 3Q21; meanwhile Net Interest Margin (USD) was 5%, higher than the 3.5% posted in 2Q22 and higher than the 3.9% registered in 3Q21.

 

ASSETS & LIABILITIES
PERFORMANCE (AR$)		   MACRO Consolidated  
In MILLION $   3Q21     4Q21     1Q22   2Q22     3Q22  
(Measuring Unit Current at EOP)   AVERAGE   REAL INT     NOMINAL     AVERAGE   REAL INT     NOMINAL     AVERAGE   REAL INT   NOMINAL   AVERAGE   REAL INT     NOMINAL     AVERAGE   REAL INT     NOMINAL  
Yields & rates in annualized nominal %   BALANCE   RATE     INT RATE     BALANCE   RATE     INT RATE     BALANCE   RATE   INT RATE   BALANCE   RATE     INT RATE     BALANCE   RATE     INT RATE  
Interest-earning assets                                                                                  
Loans & Other Financing                                                                                  
Public Sector     5,715   6.5 %   45.7 %   4,835   1.3 %   42.3 %   3,563   -12.2 %   45.0 %   2,809   -14.6 %   44.7 %   2,741   -23.6 %   43.1 %
      Financial Sector     2,827   -0.9 %   35.6 %   2,793   -5.5 %   32.8 %   1,591   -19.1 %   33.6 %   1,098   -20.5 %   34.7 %   963   -28.3 %   34.2 %
Private Sector     493,029   -2.2 %   33.8 %   527,126   -4.4 %   34.3 %   509,672   -17.5 %   36.2 %   488,001   -17.5 %   39.7 %   484,753   -23.5 %   43.2 %
Other debt securities                                                                                  
      Central Bank Securities (Leliqs)     236,186   0.5 %   37.5 %   225,772   -2.1 %   37.6 %   273,554   -15.1 %   40.3 %   319,133   -10.7 %   51.2 %   382,907   -9.8 %   68.8 %
      Government & Private Securities     228,159   -2.4 %   33.6 %   204,198   0.3 %   40.9 %   207,670   -13.2 %   43.3 %   208,826   -13.0 %   47.4 %   105,199   -24.0 %   42.2 %
Repos     43,798   -0.4 %   36.3 %   30,753   -3.1 %   36.2 %   7,270   -18.6 %   34.5 %   9,053   -18.7 %   37.8 %   25,879   -14.6 %   59.9 %
Total interest-earning assets     1,009,714   -1.5 %   34.8 %   995,477   -2.9 %   36.5 %   1,003,320   -16.0 %   38.8 %   1,028,920   -14.5 %   44.8 %   1,002,442   -18.1 %   53.3 %
                                                                                   
Fin. Assets through P&L and equity inv.     66,657   0.6 %   37.7 %   51,552   3.3 %   45.2 %   53,795   2.2 %   68.8 %   65,691   -8.5 %   55.0 %   130,662   -5.2 %   77.5 %
Other Non interest-earning assets     120,366               119,158               121,924               114,799               53,533            
Total Non interest-earning assets     187,023               170,710               175,719               180,490               184,195            
Total Average Assets     1,196,737               1,166,187               1,179,039               1,209,410               1,186,637            
                                                                                   
Interest-bearing liabilities                                                                                  
Deposits                                                                                  
Public Sector     39,414   -6.4 %   28.1 %   33,029   -9.1 %   27.7 %   35,674   -21.4 %   29.8 %   53,037   -20.9 %   34.0 %   62,253   -21.6 %   46.8 %
Private Sector     534,783   -9.4 %   24.0 %   525,700   -12.0 %   23.6 %   538,907   -23.8 %   25.8 %   564,428   -21.9 %   32.3 %   611,925   -24.1 %   42.1 %
BCRA and other financial institutions     695   -8.1 %   25.7 %   515   -10.8 %   25.4 %   805   -20.0 %   32.2 %   927   -16.2 %   42.0 %   640   -3.5 %   80.6 %
Corporate bonds     4,402   -13.7 %   18.1 %   5,207   -18.9 %   14.0 %   4,596   -30.9 %   14.1 %   1,730   -33.7 %   12.3 %   0   0.0 %   0.0 %
Repos     2,172   -8.9 %   24.7 %   1,371   -8.3 %   28.9 %   4,008   -20.4 %   31.5 %   4,473   -20.3 %   35.0 %   758   -22.3 %   45.5 %
Other financial liabilities     1215   -0.262     0.01     3646   -0.288     0.001     3624   -0.353     0.068     4250   -0.322     0.149     3141   -0.351     0.215  
Total int.-bearing liabilities     582,681   -9.2 %   24.2 %   569,468   -12.0 %   23.7 %   587,614   -23.8 %   25.9 %   628,845   -21.9 %   32.3 %   678,717   -23.9 %   42.5 %
                                                                                   
Total non int.-bearing liabilities     371,090               383,892               363,561               343,821               317,967            
                                                                                   
Total Average Liabilities     953,771               953,360               951,175               972,666               996,684            
                                                                                   
Assets Performance         88,508               91,562               95,988               114,920               134,660        
Liabilities Performance         35,490               33,952               37,461               50,592               72,665        
Net Interest Income         53,018               57,610               58,527               64,328               61,995        
Total interest-earning assets         1,009,714               995,477               1,003,320               1,028,920               1,002,442        
Net Interest Margin (NIM)         20.8 %             23.0 %             23.7 %             25.1 %             24.5 %       

 

7

 

 

 

 

3Q22 Earnings Release

 

ASSETS & LIABILITIES PERFORMANCE USD  MACRO Consolidated 
In MILLION $  3Q21   4Q21   1Q22   2Q22   3Q22 
(Measuring Unit Current at EOP)  AVERAGE   REAL INT   NOMINAL   AVERAGE   REAL INT   NOMINAL   AVERAGE   REAL INT   NOMINAL   AVERAGE   REAL INT   NOMINAL   AVERAGE   REAL INT   NOMINAL 
Yields & rates in annualized nominal %  BALANCE   RATE   INT RATE   BALANCE   RATE   INT RATE   BALANCE   RATE   INT RATE   BALANCE   RATE   INT RATE   BALANCE   RATE   INT RATE 
Interest-earning assets                                                                           
Cash and Deposits in Banks   92,258    -17.8%   0.0%   82,788    -17.3%   0.0%   69,569    -19.8%   0.0%   67,609    -10.5%   0.1%   65,428    -8.6%   0.6%
Loans & Other Financing                                                                           
      Financial Sector   0    0.0%   0.0%   0    0.0%   0.0%   0    0.0%   0.0%   41    -1.8%   9.8%   0    0.0%   0.0%
      Private Sector   38,092    5.7%   28.6%   31,844    11.3%   34.6%   24,536    12.1%   39.8%   24,177    21.1%   35.5%   26,698    21.7%   34.0%
Other debt securities                                                                           
      Central Bank   0    0.0%   0.0%   0    0.0%   0.0%   0    0.0%   0.0%   0    0.0%   0.0%   3,826    0.0%   0.0%
      Government & Private Securities   14,363    -16.4%   1.7%   49,165    -16.5%   1.0%   49,679    -19.1%   0.9%   48,822    -10.1%   0.6%   22,360    -7.4%   2.0%
Total interest-earning assets   144,713    -11.5%   7.7%   163,797    -11.5%   7.1%   143,784    -14.1%   7.1%   140,649    -4.9%   6.4%   118,312    -1.3%   8.7%
                                                                            
Non interest-earning assets   257,929              251,286              244,737              239,624              303,247           
Total Average Assets   402,642              415,083              388,521              380,273              417,733           
                                                                            
Interest-bearing liabilities                                                                           
Deposits                                                                           
Public Sector   4,896    -17.7%   0.1%   7,183    -17.3%   0.1%   8,057    -19.7%   0.1%   4,967    -10.5%   0.1%   3,867    -9.1%   0.1%
Private Sector   113,028    -17.7%   0.1%   100,879    -17.3%   0.1%   91,431    -19.8%   0.0%   86,523    -10.6%   0.0%   75,727    -9.2%   0.0%
BCRA and other financial institutions   926    -15.3%   3.0%   678    -14.0%   4.1%   418    -17.5%   2.9%   664    -7.4%   3.6%   2,199    -4.9%   4.7%
Issued corporate bonds   0    0.0%   0.0%   0    0.0%   0.0%   0    0.0%   0.0%   1,591    -8.8%   2.0%   2,227    -7.4%   2.0%
Subordinated bonds   75,467    -12.0%   7.1%   70,678    -11.9%   6.6%   66,389    -14.7%   6.3%   61,773    -4.9%   6.4%   59,088    -3.4%   6.4%
Total int.-bearing liabilities   194,317    -15.5%   2.8%   179,418    -15.1%   2.7%   166,295    -17.7%   2.6%   155,518    -8.3%   2.6%   143,108    -6.6%   2.8%
                                                                            
Total non int.-bearing liabilities   86,441              73,473              65,512              65,754              68,439           
                                                                            
Total Average liabilities   280,758              252,891              231,807              221,272              211,547           
                                                                            
Assets Performance        2,810              2,912              2,520              2,234              2,499      
Liabilities Performance        1,382              1,201              1,055              1,009              1,006      
Net Interest Income        1,428              1,711              1,465              1,225              1,493      
Total interest-earning assets        144,713              163,797              143,784              140,649              118,312      
Net Interest Margin (NIM)        3.9%             4.1%             4.1%             3.5%             5.0%     

 

In 3Q22 Banco Macro’s net fee income totaled Ps.14.2 billion, 2% or Ps.315 million lower than in 2Q22 and 1% or Ps.80 million lower than the same period of last year.

 

In the quarter, fee income totaled Ps.15.8 billion, 2% or Ps.305 million lower than in 2Q22. Insurance fees, ATM transaction fees and fees charged on deposit accounts stand out with a 12% (Ps.119 million), 6% (Ps.88 million) and 1% (Ps.87 million) decrease respectively, which were partially offset by a 5% increase in corporate services fees and a 2% increase in credit card fees. On a yearly basis, fee income decreased Ps.22 million.

 

In the quarter, total fee expense increased 1% or Ps.10 million. On a yearly basis, fee expenses increased 4% or Ps.58 million.

 

NET FEE INCOME  MACRO Consolidated   Change 
In MILLION $ (Measuring Unit Current at EOP)  3Q21   4Q21   1Q22   2Q22   3Q22   QoQ   YoY 
Fees charged on deposit accounts   70    71    52    53    49    -8%   -30%
Credit card fees   6,190    5,996    6,168    6,006    5,919    -1%   -4%
Corporate services fees   356    358    307    251    205    -18%   -42%
ATM transactions fees   1,461    1,485    1,395    1,424    1,336    -6%   -9%
Insurance fees   20    22    19    20    15    -25%   -25%
Debit card fees   917    984    935    961    842    -12%   -8%
Financial agent fees (Provinces)   1,813    1,933    2,039    2,158    2,272    5%   25%
Credit related fees   871    902    832    926    872    -6%   0%
Mutual funds & securities fees   1,017    1,096    1,076    1,044    1,028    -2%   1%
AFIP & Collection services   2,813    2,926    2,967    2,898    2,950    2%   5%
ANSES fees   336    411    339    405    353    -13%   5%
Total fee income   15,864    16,184    16,129    16,146    15,841    -2%   0%
                                    
Total fee expense   1,541    1,636    1,512    1,589    1,599    1%   4%
                                    
Net fee income   14,323    14,548    14,617    14,557    14,242    -2%   -1%

 

In 3Q22 Net Income from financial assets and liabilities at fair value through profit or loss totaled a Ps.25.5 billion gain, 183% or Ps.16.5 billion higher than the previous quarter. This increase is mostly related to higher income from government securities (mainly TV23) which increased 416% or Ps.14.7 billion. On a yearly basis Net income from financial assets and liabilities at fair value through profit or loss increased 304% or Ps.19.2 billion.

 

8 

 

 

3Q22 Earnings Release

 

NET INCOME FROM FINANCIAL ASSETS AND LIABILITIES
AT FAIR VALUE THROUGH PROFIT OR LOSS		  MACRO Consolidated   Change 
In MILLION $ (Measuring Unit Current at EOP)  3Q21   4Q21   1Q22   2Q22   3Q22   QoQ   YoY 
Profit or loss from government securities   4,901    4,560    2,007    3,531    18,223    416%   272%
Profit or loss from private securities   892    -75    216    4,970    7,049    42%   690%
Profit or loss from investment in derivative financing instruments   0    0    0    9    105    -    - 
Profit or loss from other financial assets   -2    -11    -4    -5    -35    600%   - 
Profit or loss from investment in equity instruments   -92    973    5,467    323    -81    -125%   - 
Profit or loss from the sale of financial assets at fair value   759    442    1,439    178    270    52%   -64%
Income from financial assets at fair value through profit or loss   6,458    5,889    9,125    9,006    25,531    183%   295%
                                    
Profit or loss from derivative financing instruments   -131    -14    0    0    0    -    - 
Income from financial liabilities at fair value through profit or loss   -131    -14    0    0    0    -    - 
                                    
NET INCOME FROM FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS   6,327    5,875    9,125    9,006    25,531    183%   304%

 

In the quarter Other Operating Income totaled Ps.3.7 billion, 20% or Ps.911 million lower than in 2Q22. On a yearly basis, Other Operating Income increased 16% or Ps.517 million.

 

OTHER OPERATING INCOME  MACRO Consolidated   Change 
In MILLION $ (Measuring Unit Current at EOP)  3Q21   4Q21   1Q22   2Q22   3Q22   QoQ   YoY 
Credit and debit cards   161    235    260    278    292    5%   81%
Lease of safe deposit boxes   501    494    492    463    436    -6%   -13%
Other service related fees   1,417    1,202    1,170    1,100    1,120    2%   -21%
Other adjustments and interest from other receivables   507    504    614    762    970    27%   91%
Initial recognition of loans   0    0    610    -510    -101    -    - 
Sale of property, plant and equipment   0    4    0    0    0    -    - 
Others   642    799    1,580    2,559    1,029    -60%   60%
Other Operating Income   3,228    3,303    4,744    4,656    3,745    -20%   16%

 

In 3Q22 Banco Macro’s administrative expenses plus employee benefits totaled Ps.26 billion, decreasing 3% or Ps.854 million compared to the previous quarter, personnel expenses decreased 4% while administrative expenses remained unchaged. On a yearly basis administrative expenses plus employee benefits increased 5% or Ps.1.2 billion.

 

Employee benefits decreased 4% or Ps.823 million QoQ with lower remunerations and lower employee services, both of them with 7% decreases. On a yearly basis Employee benefits increased 7% or Ps.1.1 billion.

 

In 3Q22, administrative expenses decreased Ps.31 million, due to lower advertising fees (36% decrease) which is partially offset by a 3% or Ps.35 million increase in

 

As of 3Q22, the efficiency ratio reached 29.1%, improving from the 31.2 % posted in 2Q22 and considerably better than the 37.6% posted a year ago. In 3Q22 expenses (employee benefits + G&A expenses + depreciation and impairment of assets) decreased 3%, while income (net interest income + net fee income + differences in quoted prices of gold and foreign currency + other operating income + net income from financial assets at fair value through profit or loss – (Turnover Tax + Insurance on deposits)) increased 23% compared to 2Q22.

 

9 

 

 

 

3Q22 Earnings Release

 

PERSONNEL & ADMINISTRATIVE EXPENSES  MACRO Consolidated   Change 
In MILLION $ (Measuring Unit Current at EOP)   2Q21    3Q21    4Q21    1Q22    2Q22    QoQ    YoY 
Employee benefits   13,766    13,540    13,244    11,509    15,149    32%   10%
Remunerations   9,969    9,483    9,180    7,824    10,631    36%   7%
Social Security Contributions   2,285    2,189    2,187    1,804    2,502    39%   9%
Compensation and bonuses   1,210    1,489    1,364    1,437    1,496    4%   24%
Employee services   302    379    513    444    520    17%   72%
Administrative Expenses   6,373    6,741    8,028    6,468    6,826    6%   7%
Taxes   982    1,012    1,009    1,012    1,146    13%   17%
Maintenance, conservation fees   1,085    1,161    1,211    1,044    1,071    3%   -1%
Directors & statutory auditors fees   167    182    525    324    221    -32%   32%
Security services   683    703    705    671    647    -4%   -5%
Electricity & Communications   708    678    657    639    599    -6%   -15%
Other professional fees   634    549    674    597    612    3%   -3%
Rental agreements   31    31    40    33    33    0%   6%
Advertising & publicity   279    330    475    298    560    88%   101%
Personnel allowances   67    74    135    78    105    35%   57%
Stationary & Office Supplies   42    45    49    45    47    4%   12%
Insurance   90    111    86    78    69    -12%   -23%
Hired administrative services   39    45    56    45    41    -    5%
Other   1,566    1,820    2,406    1,604    1,675    4%   7%
Total Administrative Expenses   20,139    20,281    21,272    17,977    21,975    22%   9%
                                    
Total Employees   8,318    8,167    8,005    7,982    7,925           
Branches   464    464    466    466    466           
Efficiency ratio   38.8%   37.4%   29.6%   32.7%   25.8%          
                                    
Accumulated efficiency ratio   37.6%   37.5%   29.6%   31.2%   29.1%          

 

In 3Q22, Other Operating Expenses totaled Ps.17.3 billion, increasing 14% or Ps.2.1 million QoQ, due to higher Turnover tax and initial loan recognition expenses (16% and Ps.385 million increases respectively). On a yearly basis Other Operating Expenses increased 25% or Ps.3.5 billion.

 

OTHER OPERATING EXPENSES  MACRO Consolidated   Change 
In MILLION $ (Measuring Unit Current at EOP)   3Q21    4Q21    1Q22    2Q22    3Q22    QoQ    YoY 
Turnover Tax   7,347    7,668    7,942    8,090    9,420    16%   28%
Other provision charges   612    839    612    646    1,019    58%   67%
Deposit Guarantee Fund Contributions   411    403    393    393    407    4%   -1%
Donations   13    32    179    16    139    769%   969%
Insurance claims   35    62    77    71    97    37%   177%
Initial loan recognition   214    1,330    0    0    385    100%   80%
Others   5,172    6,075    5,281    5,926    5,808    -2%   12%
Other Operating Expenses   13,804    16,409    14,484    15,142    17,275    14%   25%

  

In 3Q22 the result from the net monetary position totaled a Ps.58.3 billion loss, 25% or Ps.11.7 billion higher than the loss posted in 2Q22 and 149% or Ps.34.9 billion higher than the loss registered in 3Q21. Higher inflation was observed during the quarter (467 b.p. above 2Q22 level, up from 17.3% to 22%).

 

OPERATING RESULT  MACRO consolidated   Change 
In MILLION $ (Measuring Unit Current at EOP)   3Q21    4Q21    1Q22    2Q22    3Q22    QoQ    YoY 
Operating Result (exc. Loss from net monetary position)   37,443    37,166    52,277    54,223    75,099    39%   101%
Result from net monetary position (i.e. inflation adjustment)   -23,458    -25,206    -41,375    -46,592    -58,335    25%   149%
Operating Result (Inc. Loss from net monetary position)   13,985    11,960    10,902    7,631    16,764    120%   20%

 

In 3Q22 Banco Macro's effective income tax rate was 46.7%. For more information please see note 22 to our Financial Statements.

 

10 

 

 

3Q22 Earnings Release

 

Financial Assets

 

Private sector financing

 

The volume of “core” financing to the private sector (including loans, financial trust and leasing portfolio) totaled Ps.506.8 billion, decreasing 7% or Ps.37.2 billion QoQ and 9% or Ps.53.1 billion YoY.

 

Within Commercial loans Overdrafts and Documents, stand out with an 18% or Ps.8.7 billion decrease and a 9% or Ps.5.5 billion increase respectively.

 

Meanwhile within Consumer lending both Personal loans decreased 12% or Ps.16.3 billion while Credit card loans decreased 6% or Ps.9.6 billion.

 

Within private sector financing, peso financing decreased 6% or Ps.33.3 billion, while US dollar financing decreased 26% or USD 63 million.

 

As of 3Q22, Banco Macro´s market share over private sector loans was 7.3%.

 

FINANCING TO THE PRIVATE SECTOR  MACRO Consilidated   Change 
In MILLION $ (Measuring Unit Current at EOP)   3Q21    4Q21    1Q22    2Q22    3Q22    QoQ    YoY 
Overdrafts   35,693    38,638    37,511    48,384    39,658    -18%   11%
Discounted documents   68,350    65,865    52,997    58,464    63,931    9%   -6%
Mortgage loans   32,318    36,561    31,344    25,063    20,929    -16%   -35%
Pledged loans   11,098    12,167    10,669    9,874    7,992    -19%   -28%
Personal loans   155,072    155,471    150,060    141,135    124,832    -12%   -20%
Credit Card loans   144,411    157,709    154,896    163,689    154,108    -6%   7%
Others   58,046    58,455    41,685    47,155    43,043    -9%   -26%
Interest   49,926    51,235    49,775    48,036    48,836    2%   -2%
Total loan portfolio   554,914    576,101    528,937    541,800    503,329    -7%   -9%
Total loans in Pesos   520,137    551,576    505,941    512,585    477,984    -7%   -8%
Total loans in USD   34,777    24,525    22,996    29,215    25,345    -13%   -27%
Financial trusts   636    882    955    553    1,152    108%   81%
Leasing   335    794    770    777    1,072    38%   220%
Others   3,984    1,789    1,212    872    1,202    38%   -70%
Total other financing   4,955    3,465    2,937    2,202    3,426    56%   -31%
Total other financing in Pesos   2,910    2,471    2,082    1,373    2,637    92%   -9%
Total other financing in USD   2,045    994    855    829    789    -5%   -61%
Total financing to the private sector   559,869    579,566    531,874    544,002    506,755    -7%   -9%
EOP FX (Pesos per USD)   98.7350    102.7500    110.9783    125.2150    147.3150    18%   49%
USD financing / Financing to the private sector   7%   4%   4%   6%   5%          

 

11 

 

 

3Q22 Earnings Release

 

Public Sector Assets

 

In 3Q22, the Bank’s public sector assets (excluding LELIQs and Central Bank Notes) to total assets ratio was 17.8%, lower than the 19% registered in the previous quarter, and higher than the 17.6% posted in 3Q21.

 

In 2Q22, a 22% or Ps.74.7 billion increase in Leliqs stands out.

 

PUBLIC SECTOR ASSETS  MACRO Consolidated   Change 
In MILLION $ (Measuring Unit Current at EOP)   3Q21    4Q21    1Q22    2Q22    3Q22    QoQ    YoY 
Central Bank Notes   -    -    -    26,364.00    35,329           
Leliqs   238,640    220,829    303,200    342,999    417,716    22%   75%
Other   284,572    295,670    358,353    315,235    312,706    -1%   10%
Government securities   523,212    516,499    661,553    684,598    765,751    12%   46%
Provincial loans   4,533    3,544    2,604    3,526    1,431    -59%   -68%
Loans   4,533    3,544    2,604    3,526    1,431    -59%   -68%
Purchase of government bonds   320    299    -    0    0    -    -100%
Other receivables   320    299    0    0    0    -    -100%
                                    
TOTAL PUBLIC SECTOR ASSETS   528,065    520,342    664,157    688,124    767,182    11%   45%
                                    
TOTAL PUBLIC SECTOR ASSETS (net of
LEBAC/NOBAC/LELIQ)		   289,425    299,513    360,957    318,761    314,137    -1%   9%
                                    
TOTAL PUBLIC SECTOR ASSETS (net of
LEBAC/NOBAC/LELIQ)/TOTAL ASSETS		   17.6%   18.1%   22.1%   19.0%   17.8%          

 

Funding

 

Deposits

 

Banco Macro’s deposit base totaled Ps.1.1 trillion in 3Q22, increasing 7% or Ps.77.7 billion QoQ and a 13% or Ps.132.1 billion increase YoY and representing 84% of the Bank’s total liabilities.

 

On a quarterly basis, private sector deposits increased 5% or Ps.45.3 billion while public sector deposits increased 32% or Ps.32.6 billion.

 

The increase in private sector deposits was led by time deposits, which increased 7% or Ps.34.5 billion, while demand deposits decreased 5% or Ps.21.4 billion QoQ.

 

Within private sector deposits, peso deposits increased 10% or Ps.94.3 billion, while US dollar deposits decreased 25% or USD 289 million.

 

As of 3Q22, Banco Macro´s market share over private sector deposits was 6.5%.

 

12 

 

 

 

3Q22 Earnings Release

 

DEPOSITS  MACRO Consolidated   Change 
In MILLION $ (Measuring Unit Current at EOP)   3Q21   4Q21   1Q22   2Q22   3Q22   QoQ    YoY 
Public sector   98,708    93,670    112,825    102,190    134,773    32%   37%
                                    
Financial sector   1,519    1,596    1,479    1,492    1,273    -15%   -16%
                                    
Private sector   892,078    882,659    855,133    943,060    988,370    5%   11%
Checking accounts   180,273    167,516    156,283    162,322    149,090    -8%   -17%
Savings accounts   268,492    305,492    268,609    287,854    279,727    -3%   4%
Time deposits   420,587    387,695    410,435    471,142    505,632    7%   20%
Other   22,726    21,956    19,806    21,742    53,921    148%   137%
Total   992,305    977,925    969,437    1,046,742    1,124,416    7%   13%
                                    
Pesos   808,246    817,493    823,634    899,835    994,147    10%   23%
Foreign Currency (Pesos)   184,059    160,432    145,803    146,907    130,269    -11%   -29%
                                    
EOP FX (Pesos per USD)   98.7350    102.7500    110.9783    125.2150    147.3150    18%   49%
Foreign Currency (USD)   1,864    1,561    1,314    1,173    884    -25%   -53%
                                    
USD Deposits / Total Deposits   19%   16%   15%   14%   12%          

 

Banco Macro’s transactional deposits represent approximately 43% of its total deposit base as of 3Q22. These accounts are low cost and are not sensitive to interest rate increases.

 

Other sources of funds

 

In 3Q22, the total amount of other sources of funds increased 2% or Ps.9.2 billion compared to 2Q22. On a yearly basis other sources of funds increased 7% or Ps.31.1 billion. In 3Q22 Shareholder’s Equity increased 3% or Ps.10.9 billion due to the total comprehensive income registered in the quarter, this increase was partially offset by a Ps.1.3 billion decrease in subordinated corporate bonds.

 

OTHER SOURCES OF FUNDS  MACRO Consolidated   Change 
In MILLION $ (Measuring Unit Current at EOP)   3Q21   4Q21   1Q22   2Q22   3Q22   QoQ    YoY 
Central Bank of Argentina   40    36    32    40    31    -23%   -23%
Banks and international institutions   934    456    230    2,348    1,752    -25%   88%
Financing received from Argentine financial institutions   115    235    2,612    512    649    27%   464%
Subordinated corporate bonds   75,115    69,708    65,858    62,248    60,993    -2%   -19%
Corporate bonds   4,646    4,967    4,430    2,323    2,305    -1%   -50%
Shareholders' equity   378,592    396,199    403,957    413,891    424,835    3%   12%
Total other source of funds   459,442    471,601    477,119    481,362    490,565    2%   7%

 

13

 

 

3Q22 Earnings Release

 

Liquid Assets

 

In 3Q22, the Bank’s liquid assets amounted to Ps.1 trillion, showing an 8% or Ps.78 billion increase QoQ, and a 14% or Ps.124.9 billion increase on a yearly basis.

 

In 3Q22, Leliqs increased 22% or Ps.74.7 billion, Net Repos increased 65% or Ps.24.4 billion and were partially offset by a 9% or Ps.20.6 decrease in Cash.

 

In 3Q22 Banco Macro’s liquid assets to total deposits ratio reached 90%.

 

LIQUID ASSETS  MACRO Consolidated   Change 
In MILLION $ (Measuring Unit Current at EOP)   3Q21   4Q21   1Q22   2Q22   3Q22   QoQ    YoY 
Cash   303,844    286,199    251,151    221,633    201,060    -9%   -34%
Guarantees for compensating chambers   26,795    25,783    22,892    20,831    22,856    10%   -15%
Leliq own portfolio   238,640    220,829    287,036    342,999    417,716    22%   75%
Net Repos   37,743    52,157    -16,961    37,759    62,129    65%   65%
Other government & private securities   284,572    295,670    358,353    315,235    312,706    -1%   10%
Total   893,300    880,638    902,471    938,457    1,016,467    8%   14%
                                    
Liquid assets to total deposits   93%   90%   90%   93%   90%          

 

Solvency

 

Banco Macro continued showing high solvency levels in 3Q22 with an integrated capital (RPC) of Ps.440.7 billion over a total capital requirement of Ps.88.8 billion. Banco Macro’s excess capital in 3Q22 was 396% or Ps.351.9 billion.

 

The regulatory capital ratio (as a percentage of risk-weighted assets- RWA) was 40.4% in 2Q22; TIER1 Ratio stood at 36.1%.

 

The Bank’s aim is to make the best use of this excess capital.

 

MINIMUM CAPITAL REQUIREMENT  MACRO Consolidated   Change 
In MILLION $   3Q21   4Q21   1Q22   2Q22   3Q22   QoQ    YoY 
Credit risk requirement   34,030    36,726    40,488    45,204    52,233    16%   53%
Market risk requirement   1,631    3,585    3,886    4,643    9,998    115%   513%
Operational risk requirement   15,691    17,438    19,206    21,817    26,568    22%   69%
Total capital requirements   51,352    57,749    63,581    71,664    88,800    24%   73%
                                    
Ordinary Capital Level 1 (COn1)   203,858    233,700    279,447    336,826    418,322    24%   105%
Deductible concepts Level 1 (COn1)   -12,411    -14,585    -16,866    -21,154    -24,630    16%   98%
Capital Level 2 (COn2)   42,565    36,401    37,615    40,243    47,051    17%   11%
Integrated capital - RPC (i)   234,012    255,516    300,196    355,914    440,743    24%   88%
                                    
Excess capital   182,660    197,767    236,615    284,250    351,943    24%   93%
                                    
Risk-weighted assets - RWA (ii)   629,505    708,490    780,016    879,341    1,090,977    24%   73%
                                    
Regulatory Capital ratio [(i)/(ii)]   37.2%   36.1%   38.5%   40.5%   40.4%          
                                    
Ratio TIER 1 [Capital Level 1/RWA]   30.4%   30.9%   33.7%   35.9%   36.1%          

 

RWA - (ii): Risk Weighted Assets, considering total capital requirements.

 

14

 

 

3Q22 Earnings Release

 

Asset Quality

 

In 3Q22, Banco Macro’s non-performing to total financing ratio (under Central Bank rules) reached a level of 1.27%, unchanged from the 1.25% registered in 2Q22, and below the 1.67% posted in 3Q21.

 

Consumer portfolio non-performing loans were unchanged (down to 1.23% from 1.24%) while Commercial portfolio non-performing loans increased 15b.p. in 3Q22 (up to 1.43% from 1.28%).

 

The coverage ratio (measured as total allowances under Expected Credit Losses over Non Performing loans under Central Bank rules) reached to 153.13% in 3Q22. Write-offs over total loans totaled 0.14%.

 

The Bank is committed to continue working in this area to maintain excellent asset quality standards.

 

ASSET QUALITY  MACRO Consolidated   Change 
In MILLION $ (Measuring Unit Current at EOP)   3Q21   4Q21   1Q22   2Q22   3Q22   QoQ    YoY 
Commercial portfolio   151,305    144,734    116,074    119,233    103,707    -13%   -31%
Non-performing   857    1,439    3,211    1,521    1,480    -3%   73%
Consumer portfolio   438,415    463,609    435,588    448,121    423,016    -6%   -4%
Non-performing   8,975    6,472    5,865    5,567    5,224    -6%   -42%
Total portfolio   589,720    608,343    551,662    567,354    526,723    -7%   -11%
Non-performing   9,832    7,911    9,076    7,088    6,704    -5%   -32%
Commercial non-perfoming ratio   0.57%   0.99%   2.77%   1.28%   1.43%          
Consumer non-perfoming ratio   2.05%   1.40%   1.35%   1.24%   1.23%          
                                    
Total non-performing/ Total portfolio   1.67%   1.30%   1.65%   1.25%   1.27%          
                                    
Total allowances   17,296    16,581    14,806    11,319    10,266    -9%   -41%
Coverage ratio w/allowances   175.92%   209.59%   163.13%   159.69%   153.13%          
Write Offs   2,053    952    810    672    728    8%   -65%
Write Offs/ Total portfolio   0.35%   0.16%   0.15%   0.12%   0.14%          

 

 

 

15

 

 

 

 3Q22 Earnings Release

 

CER Exposure and Foreign Currency Position

 

CER EXPOSURE  MACRO Consolidated   Change 
In MILLION $ (Measuring Unit Current at EOP)  3Q21   4Q21   1Q22   2Q22   3Q22   QoQ   YoY 
CER adjustable ASSETS                                   
Government Securities   137,071    162,652    238,758    227,848    158,403    -30%   16%
Loans (*)   44,511    43,464    40,686    40,355    38,421    -5%   -14%
Private sector loans   12,826    11,615    9,836    8,545    7,061    -17%   -45%
Mortgage loans (UVA adjusted)   31,662    31,829    30,819    31,781    31,332    -1%   -1%
Other loans   23    20    31    29    28    -3%   22%
Total CER adjustable assets   181,582    206,116    279,444    268,203    196,824    -27%   8%
                                    
CER adjustable LIABILITIES                                   
Deposits (*)   15,468    12,850    14,737    19,808    16,133    -19%   4%
UVA Unemployment fund   2,591    2,662    2,748    3,149    3,456    10%   33%
Total CER adjustable liabilities   18,059    15,512    17,485    22,957    19,589    -15%   8%
                                    
NET CER EXPOSURE   163,523    190,604    261,959    245,246    177,235    -28%   8%

 

      (*) Includes Loans &Time Deposits CER adjustable (UVAs)   

 

FOREIGN CURRENCY POSITION  MACRO Consolidated   Change 
In MILLION $ (Measuring Unit Current at EOP)  3Q21   4Q21   1Q22   2Q22   3Q22   QoQ   YoY 
Cash and deposits in Banks   223,869    202,659    187,113    181,545    166,983    -8%   -25%
Cash   21,335    14,751    25,291    16,736    15,428    -8%   -28%
Central Bank of Argentina   115,765    123,036    94,664    97,895    84,229    -14%   -27%
Other financial institutions local and abroad   86,758    64,862    67,068    66,792    67,315    1%   -22%
Others   11    10    90    122    11    -91%   0%
Financial instruments at fair value through P&L   1,696    2,049    3,081    5,951    146,601    2363%   8544%
Other financial assets   10,523    9,947    12,311    11,997    11,732    -2%   11%
Loans and other financing   36,761    25,467    23,798    29,994    26,090    -13%   -29%
Non financial private sector& foreign residents   36,761    25,467    23,798    29,994    26,090    -13%   -29%
Other debt securities   21,478    56,250    48,150    47,974    40,640    -15%   89%
Guarantees received   3,817    3,814    3,567    3,221    3,404    6%   -11%
Investment in equity instruments   28    117    95    87    124    43%   343%
Total Assets   298,172    300,303    278,115    280,769    395,574    41%   33%
Deposits   184,059    160,432    145,803    146,907    130,269    -11%   -29%
Non financial public sector   10,440    12,749    11,002    6,201    5,354    -14%   -49%
Financial sector   1,338    1,263    1,254    1,207    1,164    -4%   -13%
Non financial private sector& foreign residents   172,281    146,420    133,547    139,499    123,751    -11%   -28%
Financial liabiities at fair value through P&L   0    210    660    655    667    2%   - 
Other liabilities from financial intermediation   15,502    10,807    10,143    11,401    12,164    7%   -22%
Financing from the Central Bank and other fin. Inst   939    459    230    2,355    1,767    -25%   88%
Issued corporate bonds   0    0    0    2,323    2,305           
Subordinated corporate bonds   75,115    69,708    65,858    62,248    60,993    -2%   -19%
Other non financial liabilities   42    67    37    74    64    -14%   52%
Total Liabilities   275,657    241,683    222,731    225,963    208,229    -8%   -24%
                                    
NET FX POSITION (Pesos)   22,515    58,620    55,384    54,806    187,345    242%   732%
EOP FX (Pesos per USD)   98.7350    102.7500    110.9783    125.2150    147.3150    18%   49%
NET FX POSITION (USD)   228    571    499    438    1,272    191%   458%

 

16

 

 

 3Q22 Earnings Release

 

3Q22 Snapshot

 

In AR$ Million. Figures of previous quarters have been restated to reflect the accumulated effect of the inflation adjustment for each period through September 30, 2022

 

  
  
  
  
  
  
  

 

17

 

 

 3Q22 Earnings Release

 

  
  
  
  
  

 

18

 

 

 

 

 

 

 

 

 

 

3Q22 Earnings Release

 

Relevant and Recent Events

 

·On April 29th 2022 TheShareholders’ Meetingresolved to distribute as dividend to the shareholders in cash and/or in kind, in the latter case valued at market price, the amount of AR$ 14,187,872,701.21, which represents AR$ 22.18 per share, subject to prior authorization from the Banco Central de la República Argentina (“BCRA”), and delegated to the Board the powers to determine the date of the effective availability thereof to the shareholders, currency, terms and other payment terms and conditions of such dividend.

 

On May 12th the Superintendencia de Entidades Financieras y Cambiarias of the Central Bank of the Republic of Argentina informed us that it has decided to authorize Banco Macro S.A. to distribute profits in cash and/or in kind (securities) for an aggregate amount of AR $19,751,444,343.74, which distribution shall be carried out in 12 monthly equal and consecutive instalments.

 

As of this date the Bank has paid

 

·On June 7, 2022 a cash dividend in the amount of Ps.9,875,722,171.88 (installments 1 through 6)

  

·On July 6, 2022 a cash dividend in the amount of Ps.1.645.953.695,31 (installment 7)

 

·On August 2, 2022 a cash dividend in the amount of Ps.1.645.953.695,31 (installment 8)

 

·On September 6, 2022 a cash dividend in the amount of Ps. 1.645.953.695,31 (installment 9)

 

·On October 4, 2022 a cash dividend in the amount of Ps. 1.645.953.695,31 (installment 10)

 

·On November 1, 2022 a cash dividend in the amount of Ps. 1.645.953.695,31 (installment 11)

 

·Interest Payment Series E Dollar denominated Notes. In November 2022, the Bank paid quarterly interest on Class E dollar denominated notes in the amount of USD 62,131.5.

 

·Interest Payment Series A Subordinated Notes. In November 2022, the Bank paid semiannual interest on Series A Subordinated notes in the amount of USD 13.286.000.

 

Regulatory Changes

 

·Monetary policy rate. On September 15, 2022 through Communication “A” 7605 the Central Bank of Argentina increased the applicable percentages (over Leliq rates) for the determination of minimum time deposit rates: time deposits made by individuals which do not exceed the amount of $10 million: 100% (75% nominal annual), deposits not included in the previous item: 88.67% of the Leliq rate (66.50%), effective as of September 26, 2022.

 

In terms of Productive Investment Credit Lines for SMEs, maximum rates were increased: from 59% to 64.50% to investment project financing, and from 69% to 74.50% for working capital and discounted instruments financing. As of September 2022, interest rates for credit card financing (up to $200,000) was increased from 71.50% to 77%. On September 15, 2022 the Central Bank of Argentina also decided to increase the monetary policy rate (28-day Leliq) by 550 basis points from 69.50% to 75%.

 

19 

 

 

3Q22 Earnings Release

 

·Productive Investment Credit Lines for SMEs. On September 29, 2022 through communication “A” 7615 the Central Bank of Argentina established that for the definition of amounts included in the 2022/2023 quotas, financial institutions must exclude deposits related to “special accounts for holders with agricultural activity”. Minimum reserve requirement. (Communication “A” 7616, 09/30/2022). The BCRA decided (i) To reduce the reserve requirement rate of time deposits (7 points for deposits with a residual period of 29 days and 8 points for deposits of up to 59 days), (ii) eliminate the reduction of requirements by location of branches,

 

(iii) enable institutions not included in Group A to integrate requirements with Bonte 27 (except sight deposits and unutilized balances), (iv) enable to integrate sight deposits with LELIQ (Group A: 4 points, all other: 10 points), (v) eliminate franchises not linked to credits, (vi) eliminate special requirement rates

 

·Minimum reserve requirements. On September 22, 2022, through Communication “A” the Central Bank of Argentina allowed the integration of up to 45% of reserve requirements over peso deposits of payment services providers that offer payment accounts with Government Bonds in pesos maturing on May 23, 2027. On September 27 through Communication “A” 7614 the Central Bank of Argentina increased to 630 consecutive days (from 450) the maximum duration of national public securities in pesos purchased through primary market since September 28, 2022, used to integrate minimum reserve requirements. It also established that as of September 27, 2022, that the minimum reserve requirement that financial institutions can integrate with LELIQ will also be able to be integrated with public securities in “dual currency” (which are now exclude from public sector financing limits).

 

20 

 

 

3Q22 Earnings Release

 

QUARTERLY BALANCE SHEET  MACRO Consolidated   Change 
In MILLION $ (Measuring Unit Current at EOP)   3Q21    4Q21    1Q22    2Q22    3Q22    QoQ    YoY 
ASSETS                                   
Cash and deposits in Banks   303,844    286,199    251,151    221,633    201,060    -9%   -34%
Cash   45,681    44,216    45,937    35,398    33,589    -5%   -26%
Central Bank of Argentina   171,351    177,103    138,039    119,307    99,991    -16%   -42%
Other local & foreign entities   86,801    64,869    67,085    66,805    67,470    1%   -22%
Other   11    11    90    123    10    -92%   -9%
Debt securities at fair value through profit & loss   38,880    53,819    46,134    119,998    179,169    49%   361%
Derivatives   2    2    0    12    138    -    - 
Repo Transactions   41,056    52,157    0    38,177    62,480    -    52%
Other financial assets   39,222    58,398    35,730    34,244    32,429    -5%   -17%
Loans & other receivables   567,250    585,138    534,924    548,299    508,322    -7%   -10%
Non Financial Public Sector   4,901    3,946    2,991    3,955    1,780    -55%   -64%
Financial Sector   3,116    2,508    1,014    895    939    5%   -70%
Non Financial private sector and foreign   559,233    578,684    530,919    543,449    505,603    -7%   -10%
Other debt securities   504,853    474,937    605,100    573,612    632,344    10%   25%
Financial assets in guarantee   34,504    29,834    45,854    24,963    27,258    9%   -21%
Income tax assets   0    903    282    1,551    0           
Investments in equity instruments   3,817    3,620    682    714    677    -5%   -82%
Investments in other companies (subsidiaries and joint ventures)   720    813    933    840    964    15%   34%
Property, plant and equipment   88,133    87,807    87,153    87,044    86,539    -1%   -2%
Intangible assets   13,806    13,957    13,904    14,738    15,017    2%   9%
Deferred income tax assets   62    79    60    121    90    -26%   45%
Other non financial assets   4,036    3,871    4,757    7,236    13,372    85%   231%
Non-current assets held for sale   5,477    5,383    5,363    5,357    5,263    -2%   -4%
TOTAL ASSETS   1,645,662    1,656,917    1,632,027    1,678,539    1,765,122    5%   7%
                                    
LIABILITIES                                   
Deposits   992,305    977,925    969,437    1,046,742    1,124,416    7%   13%
Non Financial Public Sector   98,708    93,670    112,825    102,190    134,773    32%   37%
Financial Sector   1,519    1,596    1,479    1,492    1,273    -15%   -16%
Non Financial private sector and foreign   892,078    882,659    855,133    943,060    988,370    5%   11%
Liabilities at fair value through profit & loss   4,064    2,703    660    659    667    1%   -84%
Derivatives   4    4    11    1    2    -    0%
Repo Transactions   3,313    -    16,961    418    351    -    -86%
Other financial liabilities   85,308    111,923    84,761    86,054    84,975    -1%   0%
Financing received from Central Bank and Other Financial Institutions   1,089    727    2,874    2,900    2,433    -16%   123%
Issued Corporate Bonds   4,646    4,967    4,430    2,323    2,305    -1%   -50%
Current income tax liabilities   4,452    583    793    781    6,733    762%   51%
Subordinated corporate bonds   75,115    69,708    65,858    62,248    60,993    -2%   -19%
Provisions   2,508    2,726    2,865    2,860    3,144    10%   25%
Deferred income tax liabilities   14,299    9,453    10,817    11,664    13,177    13%   -8%
Other non financial liabilities   79,962    79,936    68,558    47,956    41,027    -14%   -49%
TOTAL LIABILITIES   1,267,065    1,260,655    1,228,025    1,264,606    1,340,223    6%   6%
                                    
SHAREHOLDERS' EQUITY                                   
Capital Stock   639    639    639    639    639    0%   0%
Issued Shares premium   12,430    12,430    12,430    12,430    12,430    0%   0%
Adjustment to Shareholders' Equity   145,814    145,814    145,814    145,814    145,814    0%   0%
Reserves   202,321    202,321    202,321    241,143    241,143    0%   19%
Retained earnings   -14,814    -14,814    30,229    116    116    -    - 
Other accumulated comprehensive income   4,652    4,766    3,911    77    2,156    2700%   -54%
Net income for the period / fiscal year   27,550    45,043    8,613    13,672    22,537    65%   -18%
Shareholders' Equity attributable to parent company   378,592    396,199    403,957    413,891    424,835    3%   12%
                                    
Shareholders' Equity attributable to non controlling interest   5    63    46    42    64    52%   1180%
TOTAL SHAREHOLDERS' EQUITY   378,597    396,262    404,003    413,933    424,899    3%   12%

 

21 

 

 

 

3Q22 Earnings Release

 

INCOME STATEMENT  MACRO Consolidated   Change 
In MILLION $ (Measuring Unit Current at EOP)  3Q21   4Q21   1Q22   2Q22   3Q22   QoQ   YoY 
Interest Income   91,318    94,474    98,508    117,154    137,159    17%   50%
Interest Expense   36,872    35,153    38,516    51,601    73,671    43%   100%
 Net Interest Income   54,446    59,321    59,992    65,553    63,488    -3%   17%
Fee income   15,863    16,184    16,129    16,146    15,841    -2%   0%
Fee expense   1,541    1,636    1,512    1,589    1,599    1%   4%
 Net Fee Income   14,322    14,548    14,617    14,557    14,242    -2%   -1%
Subtotal (Net Interest Income + Net Fee Income)   68,768    73,869    74,609    80,110    77,730    -3%   13%
Net Income from financial instruments
 at Fair Value Through Profit & Loss		   6,327    5,875    9,125    9,006    25,531    183%   304%
Result from assets at amortised cost   -    151    -    -    -    -    - 
Difference in quoted prices of gold
and foreign currency		   1,083    2,657    4,414    6,562    16,030    144%   1380%
Other operating income   3,228    3,303    4,744    4,656    3,745    -20%   16%
Provision for loan losses   387    3,260    1,066    942    1,425    51%   268%
Net Operating Income   79,019    82,595    91,826    99,392    121,611    22%   54%
Personnel expenses   16,516    16,153    14,039    18,478    17,655    -4%   7%
Administrative expenses   8,223    9,793    7,890    8,326    8,295    0%   1%
Depreciation and impairment of assets   3,033    3,074    3,136    3,223    3,287    2%   8%
Other operating expenses   13,804    16,409    14,484    15,142    17,275    14%   25%
Operating Income   37,443    37,166    52,277    54,223    75,099    39%   101%
Income from associates and joint ventures   -2    58    -51    -49    -97    -    - 
Result from net monetary position   -23,458    -25,206    -41,375    -46,592    -58,335    -    - 
Net Income before income tax on cont. operations   13,983    12,018    10,851    7,582    16,667    120%   19%
Income tax on continuing operations   522    -5,477    2,255    2,527    7,784    208%   1391%
Net Income from continuing operations   13,461    17,495    8,596    5,055    8,883    76%   -34%
                                    
Net Income for the period   13,461    17,495    8,596    5,055    8,883    76%   -34%
Net Income of the period attributable
to parent company		   13,461    17,496    8,613    5,059    8,865    75%   -34%
Net income of the period attributable
to non-controlling interests		   -    -1    -17    -4    18    -    - 
                                    
Other Comprehensive Income   105    115    -855    -3,834    2,079    -    - 
Foreign currency translation differences in
financial statements conversion		   -337    -320    -369    -189    -178    -    - 
Profits or losses from financial assets measured
at fair value  through other comprehensive income
(FVOCI)  (IFRS 9(4.1.2)(a)		   442    435    -486    -3,645    2,257    -    411%
                                    
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD   13,566    17,610    7,741    1,221    10,962    798%   -19%
Total Comprehensive Income attributable
to parent Company		   13,566    17,611    7,758    1,225    10,944    793%   -19%
Total Comprehensive Income attributable
to non-controlling interests		   -    -1    -17    -4    18    -    - 

 

22 

 

 

3Q22 Earnings Release

 

QUARTERLY ANNUALIZED RATIOS  MACRO Consolidated 
   3Q21   4Q21   1Q22   2Q22   3Q22 
Profitability & performance                         
Net interest margin   19.1%   21.2%   22.8%   24.7%   28.1%
Net interest margin adjusted (exc. FX)   18.7%   20.3%   21.2%   22.5%   22.5%
Net fee income ratio   13.7%   12.6%   13.0%   11.7%   7.2%
Efficiency ratio   38.8%   37.4%   29.6%   32.7%   25.8%
Net fee income as % of A&G Expenses   35.3%   33.7%   44.0%   35.7%   27.9%
Return on average assets   3.3%   4.4%   2.2%   1.3%   2.2%
Return on average equity   14.6%   18.5%   9.1%   5.1%   8.8%
Liquidity                         
Loans as a percentage of total deposits   57.2%   59.8%   55.2%   52.4%   45.2%
Liquid assets as a percentage of total deposits   90.0%   90.0%   93.0%   90.0%   90.0%
Capital                         
Total equity as a percentage of total assets   23.0%   23.9%   24.8%   24.7%   24.1%
Regulatory capital as % of APR   37.2%   36.1%   38.5%   40.5%   40.4%
Asset Quality                         
Allowances over total loans   3.0%   2.8%   2.8%   2.1%   2.0%
Non-performing financing as a percentage of total financing   1.7%   1.3%   1.6%   1.3%   1.3%
Coverage ratio w/allowances   175.9%   209.6%   163.2%   159.7%   153.1%
Cost of Risk   0.3%   2.3%   0.8%   0.7%   1.1%

 

ACCUMULATED ANNUALIZED RATIOS  MACRO Consolidated 
   3Q21   4Q21   1Q22   2Q22   3Q22 
Profitability & performance                         
Net interest margin   18.4%   19.1%   22.8%   23.8%   25.2%
Net interest margin adjusted (exc. FX)   17.8%   18.4%   21.2%   21.9%   22.1%
Net fee income ratio   12.4%   12.5%   13.0%   12.3%   10.3%
Efficiency ratio   37.6%   37.5%   29.6%   31.2%   29.1%
Net fee income as % of A&G Expenses   33.1%   33.3%   44.0%   39.5%   35.5%
Return on average assets   2.2%   2.8%   2.2%   1.7%   1.9%
Return on average equity   10.1%   12.3%   9.1%   7.1%   7.7%
Liquidity                         
Loans as a percentage of total deposits   57.2%   59.8%   55.2%   52.4%   45.2%
Liquid assets as a percentage of total deposits   90.0%   90.0%   93.0%   90.0%   90.0%
Capital                         
Total equity as a percentage of total assets   23.0%   23.9%   24.8%   24.7%   24.1%
Regulatory capital as % of APR   37.2%   36.1%   38.5%   40.5%   40.4%
Asset Quality                         
Allowances over total loans   3.0%   2.8%   2.8%   2.1%   2.0%
Non-performing financing as a percentage of total financing   1.7%   1.3%   1.6%   1.3%   1.3%
Coverage ratio w/allowances   175.9%   209.6%   163.2%   159.7%   153.1%
Cost of Risk   0.2%   0.7%   0.8%   0.8%   0.9%

 

23 

 

 

SIGNATURE

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereto duly authorized.

 

Date: November 23, 2022

 

  MACRO BANK INC.
     
  By: /s/ Jorge Francisco Scarinci
  Name: Jorge Francisco Scarinci
  Title: Chief Financial Officer