-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, AIMxSfFmRyt16i1EscXZzlgd6wcP3lQV4kAe+caO3HtOyKkrd+lARntL8T0MxPSi OtdLcp4j1wL9ckGTb9v0VA== 0001144204-07-027335.txt : 20070518 0001144204-07-027335.hdr.sgml : 20070518 20070518163538 ACCESSION NUMBER: 0001144204-07-027335 CONFORMED SUBMISSION TYPE: 6-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20070518 FILED AS OF DATE: 20070518 DATE AS OF CHANGE: 20070518 FILER: COMPANY DATA: COMPANY CONFORMED NAME: Macro Bank Inc. CENTRAL INDEX KEY: 0001347426 STANDARD INDUSTRIAL CLASSIFICATION: COMMERCIAL BANKS, NEC [6029] IRS NUMBER: 000000000 STATE OF INCORPORATION: C1 FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 6-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-32827 FILM NUMBER: 07865207 BUSINESS ADDRESS: STREET 1: SARMIENTO 447 CITY: BUENOS AIRES STATE: C1 ZIP: 1041 BUSINESS PHONE: 54-11-5222-6500 MAIL ADDRESS: STREET 1: SARMIENTO 447 CITY: BUENOS AIRES STATE: C1 ZIP: 1041 FORMER COMPANY: FORMER CONFORMED NAME: Macro Bansud Bank Inc. DATE OF NAME CHANGE: 20051220 6-K 1 v076113_6k.htm
SECURITIES AND EXCHANGE COMMISSION
 
Washington, D.C. 20549
 
                        
 
FORM 6-K
 
REPORT OF FOREIGN PRIVATE ISSUER
 
PURSUANT TO RULE 13a-16 OR 15d-16 OF THE
 
SECURITIES EXCHANGE ACT OF 1934
 
May 18, 2007
 
                        
 
Commission File Number: 333-130901
 
                        
 
MACRO BANK INC.
 
(Exact name of registrant as specified in its Charter)
 
                        
 
Sarmiento 447
Buenos Aires C1 1041
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 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         ___  No     X  
  
Indicate by check mark whether by furnishing the information contained in this Form, the registrant is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
 
 
Yes        
 ___  No     X  
  
 
If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82- N/A  
 


MANAGEMENT DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS 
The following discussion is based on, and should be read in conjunction with, our consolidated financial statements and related notes in this Pricing Supplement and in the Offering Circular and “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” “Overview of Banco Macro S.A.,” Selected Financial and Operating Data” and the other financial information appearing the Offering Circular.

 
THREE MONTHS ENDED MARCH 31, 2007 COMPARED TO THREE MONTHS ENDED MARCH 31, 2006
 
The disclosure includes consolidated comparisons and, in some cases, comparisons for the three months ended March 31, 2007 against the three months ended March 31, 2006 of Banco Macro without the 2006 acquisition of Nuevo Banco Bisel, or NBB, in order to permit period-to-period comparisons, considering that Nuevo Banco Bisel was acquired in August of 2006.
 
The following table sets forth certain components of our income statement for the three months ended March 31, 2006 and 2007. Our consolidated results of operations for 2007 include results for Banco del Tucumán and Nuevo Banco Bisel, which were consolidated with Banco Macro, respectively, from May 5, 2006 and from August 11, 2006 . The additional financial information below presents the consolidated results of operations for Banco Macro without Nuevo Banco Bisel.
 
 
  
Three Months Ended March 31,
  
   
2006 Consolidated(1)
  
2007 Consolidated
  
2007 without NBB(2)
  
   
(in thousands of pesos) (unaudited)
  
Financial income
    
211,034
    
417,504
    
336,013
  
Financial expenses
    
(76,251
)
  
(157,973
)
  
(136,815
)
Gross intermediation margin
    
134,783
    
259,531
    
199,198
  
Provision for loan losses
    
(8,044
)
  
(17,321
)
  
(11,652
)
Service charge income
    
88,813
    
146,851
    
119,533
  
Service charge expenses
    
(18,156
)
  
(32,160
)
  
(29,450
)
Administrative expenses
    
(128,408
)
  
(217,550
)
  
(172,837
)
Net other income
    
12,631
    
(1,178
)
  
33,217
  
Income before income tax
    
81,619
    
138,173
    
138,009
  
Income tax
    
(8,716
)
  
(14,130
)
  
(14,130
)
Minority interest
    
(8
)
  
(868
)
  
(704
)
Net income
    
72,895
    
123,175
    
123,175
  
__________________
(1)
Results for 2006 do not include the results of Banco del Tucumán and Nuevo Banco Bisel, which are consolidated with Banco Macro, respectively, from May 5, 2006 and August 11, 2006.
(2)
The results of Nuevo Banco Bisel are included in “Net Other Income.”

Financial Income
 
Our financial income increased 59% on a stand alone basis and 98% on a consolidated basis for the three months ended March 31, 2007 as compared to the three months ended March 31, 2006. The components of our financial income for the three months ended March 31, 2006 and 2007 were as follows:
 
 
     
Three Months Ended March 31,
  
     
2006 Consolidated
    
2007 Consolidated
    
2007 without NBB
  
     
(in thousands of pesos) (unaudited)
  
Interest on cash and due from banks
    
2,452
    
5,185
    
4,998
  
Interest on loans to the financial sector
    
2,644
    
10,090
    
8,881
  
Interest on overdrafts
    
16,280
    
40,010
    
29,651
  
Interest on mortgage loans
    
9,102
    
14,349
    
12,346
  
Interest on pledge loans(1)
    
9,035
    
12,238
    
9,793
  
Interest on credit card loans
    
5,200
    
11,611
    
9,827
  
Interest on documents(2)
    
9,696
    
23,858
    
11,586
  
Interest on other loans(3)
    
44,783
    
100,363
    
100,271
  
Interest on other receivables from financial intermediation
    
3,821
    
4,176
    
3,653
  
Income from government and private securities, net
    
50,224
    
126,490
    
84,619
  
Indexation by benchmark stabilization coefficient (CER)(4)
    
28,636
    
24,562
    
18,525
  
Income from guaranteed loans(5)
    
6,478
    
8,885
    
6,565
  
Other(6)
    
22,683
    
35,687
    
35,298
  
Total financial income
    
211,034
    
417,504
    
336,013
  
__________
(1)
Includes primarily secured car loans.
(2)
Includes factoring, check cashing advances and loans with promissory notes.
(3)
Includes interest on loans not classified under prior headings.
(4)
Includes CER accrued for all the assets subject to adjustment by CER.
(5)
Includes loans to the Argentine government that were issued in exchange for federal and provincial government bonds.
(6)
Principally foreign exchange gains from our net asset position in U.S. dollars and results from leasing activity.

Our financial income increased 98% on a consolidated basis and 59% without the acquisition of Nuevo Banco Bisel. Interest on loans increased 120% on a consolidated basis and 88% without Nuevo Banco Bisel due to a higher volume of loans to the private sector. We continue to exhibit high rates of growth as loans to the private sector increased 100% as of March 31, 2007 as compared to March 31, 2006. Thus, the share of our total financial income from private sector loans increased from 46% to 51%. The main drivers of this growth have been overdrafts, which grew 123%, consumer loans, which grew 200%, credit cards loans, which grew 96% and medium-term loans structured for our corporate customers recorded in “Other,” which grew 59% in March 31, 2007 as compared to March 31, 2006.
 
Income from government and private securities climbed 152% on a consolidated basis and 69% without Nuevo Banco Bisel mainly driven by LEBAC/NOBAC results.
 
Indexation by CER decreased 14% on a consolidated basis and 35% without the acquisition of Nuevo Banco Bisel due to the decreasing volume of loans and bonds adjusted by CER. Additionally, inflation for the three months ended March 31, 2007 was lower than the same period in 2006 (inflation of 3% during the first quarter 2006 compared to 2.52% during 2007).

Financial expenses
 
Financial expenses increased 107% on a consolidated basis, and 79% without the Nuevo Banco Bisel acquisition, as of March 31, 2007 as compared to March 31, 2006. The components of our financial expenses for the three months ended March 31, 2006 and 2007 were as follows
 
 
 
  
Three Months Ended March 31,
  
 
  
2006 Consolidated
  
2007 Consolidated
  
2007 Without NBB
  
   
(in thousands of pesos) (unaudited)
  
Interest on checking accounts
    
622
    
5,301
    
5,123
  
Interest on savings accounts
    
1,709
    
2,086
    
1,606
  
Interest on time deposits
    
36,256
    
89,742
    
78,537
  
Interest on financing from the financial sector
    
122
    
134
    
134
  
Interest on subordinated bonds
    
209
    
13,731
    
13,731
  
Interest on other liabilities from financial intermediation(1)
    
3,761
    
9,835
    
9,798
  
Other interest(2)
    
2,906
    
2,990
    
2,039
  
Net income from options
    
0
    
504
    
504
  
Indexation by CER(3)
    
18,969
    
15,440
    
9,598
  
Other(4)
    
11,697
    
18,210
    
15,745
  
Total financial expenses
    
76,251
    
157,973
    
136,815
  
__________
(1)
Includes lines of credit from other banks, repurchase agreements and liquidity assistance from the Central Bank.
(2)
Includes subordinated corporate bonds issued by us.
(3)
Includes CER accrued for all the liabilities subject to adjustment by CER.
(4)
Includes deposits in the form of government securities and CEDROs.

Financial expenses increased 107% on a consolidated basis and 79% without the Nuevo Banco Bisel acquisition.
 
The growth of financial expenses is mainly explained by interest on deposits, which grew 152% and 121% on a consolidated basis and without the NBB acquisition, respectively. This growth originated in two factors: the higher prevailing interest rates in line with the increase in interest rates in the financial system as a whole (for time deposits in pesos, the interest rate was 6.43% in March 2006 and more than 8% in March 2007) and the increasing volume of deposits, which grew 70% during 2007 (including Nuevo Banco Bisel).
 
Indexation by CER fell 19% on a consolidated basis, due to a decrease in CER-adjusted deposits, mostly owned by institutional investors and also due to lower inflation during 2007.

Provision for loan losses
 
Provision for loan losses increased 115% on a consolidated basis for 2007 compared to 2006 and 45% without the NBB acquisition as a result of the growth of our lending portfolio.

Service charge income
 
The following table provides a breakdown of our service charge income by category for the three months ended March 31, 2006 and 2007:
 
  
Three Months Ended March 31,
  
   
2006 Consolidated
  
2007 Consolidated
  
2007 Without NBB
  
   
(in thousands of pesos) (unaudited)
  
Service charges on deposit accounts
    
56,612
    
96,644
    
75,598
  
Debit and credit card income
    
7,167
    
16,453
    
14,360
  
Other fees related to foreign trade
    
2,586
    
4,323
    
3,817
  
Credit-related fees
    
6,407
    
12,930
    
10,605
  
Lease of safe-deposit boxes
    
1,788
    
3,116
    
2,125
  
Other(1)
    
14,253
    
13,385
    
13,028
  
Total service charge income
    
88,813
    
146,851
    
119,533
  
__________
(1)
Includes insurance income.
 
Service charge income increased 65% on a consolidated basis primarily due to the increase in the volume of our operations and the acquisitions of 2006. The main drivers were fees related to deposits, which grew 71% and represent 66% of total service charge income, fees related to debit and credit cards, which grew 129% and fees related to lending activities, which grew 102%.
 
 
Service charge expenses
 
Service charge expenses in 2007 increased 77% on a consolidated basis and 62% without Nuevo Banco Bisel, as compared to 2006, mainly due to higher credit card and debit card processing fees, other service fees and taxes.

Administrative expenses
 
The components of our administrative expenses for the three months ended March 31, 2006 and 2007 are reflected in the following table:
 
   
    Three Months Ended March 31,         
  
 
  
2006 Consolidated
  
2007 Consolidated
  
2007 without NBB
  
   
(in thousands of pesos) (unaudited)
  
Personnel expenses
    
79,148
    
137,709
    
106,224
  
Directors and statutory auditors fees
    
1,611
    
3,460
    
2,985
  
Other professional fees
    
7,795
    
9,601
    
8,472
  
Advertising and publicity
    
5,003
    
9,531
    
9,234
  
Taxes
    
2,302
    
3,070
    
2,668
  
Other operating expenses
    
28,614
    
49,086
    
38,293
  
Other
    
3,935
    
5,093
    
4,961
  
Total administrative expenses
    
128,408
    
217,550
    
172,837
  

 
Administrative expenses increased 69% on a consolidated basis and 35% without the Nuevo Banco Bisel acquisition, mainly due to personnel expenses which grew 74% on a consolidated basis and 34% without the 2006 acquisitions. This increase in personnel expenses is attributed to salary adjustments and to the increase in the number of employees as a result of the 2006 acquisitions.

Net other income
 
Net other income totaled a loss of PS.1.2 million, decreasing 110% or Ps.13.8 in the first quarter of 2007 as compared to the same period in 2006, as a result of a two main factors: (1) a decrease in our other income by Ps. 9.3 million and (2) an increase in our other expenses by Ps. 4.5 million. The decrease in our other income by Ps. 9.3 occurred primarily because Banco Bansud's goodwill amortization installment of Ps.18.3 million gain were included in the first quarter of 2006 and this amortization was completed at the end of 2006; on the other side, in the first quarter of 2007 recovered loans and allowances included a gain of Ps.12.3 million due to the acquisitions of Nuevo Banco Bisel and Banco del Tucuman. The increase in our net other expenses by Ps.4.5 million occurred primarily because the first quarter of 2007 included losses from Nuevo Banco Bisel and Banco del Tucuman of Ps.8.1 million and the extraordinary expenses from our ADR and our unsubordinated notes decreased approximately Ps.7 million.

Income tax
 
During the first quarter 2007, we accrued income tax of Ps.14 million, compared to Ps.8.7 million recorded in the same period 2006, as a result of increasing our net income.
 

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: May 18, 2007
 
     
  MACRO BANK INC.
 
 		  
 		  
 
  By:   /s/ 
  Name: 
Luis Cerolini
  Title: Attorney-in-fact
 
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