0001144204-17-041784.txt : 20170809 0001144204-17-041784.hdr.sgml : 20170809 20170809172455 ACCESSION NUMBER: 0001144204-17-041784 CONFORMED SUBMISSION TYPE: 6-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20170809 FILED AS OF DATE: 20170809 DATE AS OF CHANGE: 20170809 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: 171018978 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 v472819_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

 

August 9, 2017

 

 

 

Commission File Number: 001-32827

  

 

 

MACRO BANK INC.

(Translation of registrant’s name into English)

 

 

 

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 of Form 20-F or Form 40-F.

 

Form 20-F x Form 40-F o

 

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 o 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

 

 

 

  

 

  

2Q17 Earnings Release

 

Banco Macro Announces Results for the Second Quarter of 2017

 

Buenos Aires, Argentina, August 9, 2017 – Banco Macro S.A. (NYSE: BMA; BCBA: BMA) (“Banco Macro” or “BMA” or the “Bank”) announced today its results for the second quarter ended June 30, 2017 (“2Q17”). All figures are in Argentine pesos (Ps.) and have been prepared in accordance with Argentine GAAP.

 

Summary

 

·   The Bank’s net income totaled Ps.2.0 billion in 2Q17. This result was 14% higher than the Ps.1.8 billion posted in the first quarter of 2017 (“1Q17”) and 12% higher than a year ago. In 2Q17, the accumulated annualized return on average equity (“ROAE”) and the accumulated annualized return on average assets (“ROAA”) were 30.7% and 4.7%, respectively.

 

·   In 2Q17, Banco Macro’s financing to the private sector grew 12% or Ps.11.3 billion quarter over quarter (“QoQ”) totaling Ps.105.2 billion and increased 49% or Ps.34.5 billion year over year (“YoY”). In the quarter, growth was driven by commercial loans, among which Documents and Others stand out, which grew 15% and 30% QoQ, respectively. Meanwhile within consumer loans, personal loans and credit cards rose 12% and 5% QoQ, respectively.

 

·   In 2Q17, the accumulated efficiency ratio reached 45.0%, lower than the 47.0% posted in 1Q17 and the 46.3% in 2Q16. Net fee income over administrative expenses was 57.7%, higher than the 56.2% registered in the previous quarter and the 53.4% in 2Q16.

 

·   In 2Q17, Banco Macro’s total deposits grew 7% QoQ, totaling Ps.123.7 billion and representing 81% of the Bank’s total liabilities. Private sector deposits grew 10% QoQ.

 

·   Banco Macro continued showing a strong solvency ratio, with excess capital of Ps.28.8 billion (post Primary Follow-On Equity Offering) and 26.3% regulatory capitalization ratio – Basel III) In addition, the Bank’s liquid assets remained at an adequate level, reaching 53.2% of its total deposits in 2Q17.

 

·   In 2Q17, the Bank’s non-performing to total financing ratio was 1.27% and the coverage ratio reached 168.08%.

 

2Q17 Earnings Release Conference Call

 

Thursday, August 10, 2017
Time: 11:00 a.m. Eastern Time | 12:00 p.m. Buenos Aires Time

IR Contacts in Buenos Aires:

 

Jorge Scarinci

Finance & IR Manager

 

Nicolás A. Torres

Investor Relations

 

To participate, please dial:

Argentina Toll Free: (0800) 444 2930

Participants Dial In (Toll Free):

+1 (844) 839 2185

Participants International Dial In:

+1 (412) 317 2506

Webcast Replay: click here

 

Available from 08/10/2017 through 08/24/2017

Phone: (54 11) 5222 6682

E-mail: investorelations@macro.com.ar

 

Visit our website at: www.ri-macro.com.ar

 

Conference ID: Banco Macro

Webcast: click here

 

With the presence of: Jorge Pablo Brito (Director), Gustavo Manriquez (General Manager) and Jorge Scarinci (Finance and IR Manager).

 

  

 

 

2Q17 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), the Bolsa de Comercio de Buenos Aires (www.bolsar.com) 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.

 

 2 

 

 

2Q17 Earnings Release

 

Results

 

Earnings per outstanding share were Ps.3.40 in 2Q17, 13% higher than in 1Q17 and 10% hihger than 2Q17.

 

EARNINGS PER SHARE  MACRO Consolidated   Variation 
In MILLION $  2Q16   3Q16   4Q16   1Q17   2Q17   QoQ   YoY 
                             
Net income (M $)   1,805.3    1,632.6    1,695.3    1,764.0    2,015.3    14%   12%
Average # of shares outstanding (M)   584.5    584.5    584.5    584.5    593.5    2%   2%
Book value per avg. Outstanding share ($)   32.13    34.92    37.82    40.84    60.40    48%   88%
Shares Outstanding (M)   584.5    584.5    584.5    584.5    658.5    13%   13%
Earnings per avg.  outstanding share ($)   3.09    2.79    2.90    3.02    3.40    13%   10%
                                    
Book value per avg. issued ADS (USD)   21.53    22.88    23.86    26.55    36.39    37%   69%
Earnings per avg. outstanding ADS (USD)   2.07    1.83    1.83    1.96    2.05    4%   -1%

 

On July 13, 2017 the International Underwriters suscribed 11,099,993 million Class B ordinary shares (greenshoe option). Total Outstanding shares as of July 13, 2017: 669,663,021

 

Banco Macro’s 2Q17 net income of Ps.2.0 billion was 14% or Ps.251 million higher than the previous quarter and 12% or Ps.210 million higher YoY.

 

The operating result for 2Q17 was Ps.3.5 billion, increasing 18% or Ps.549 million QoQ and 31% or Ps.840 million higher than the result posted in 2Q16. Had Income from government and private securities and income on guaranteed loans and in CER adjustments been excluded, operating result would have been 3% higher than the 1Q17 and 254% higher than the result posted a year ago.

 

It is important to emphasize that this result was obtained with a leverage of 5.2x assets to equity ratio.

 

INCOME STATEMENT  MACRO Consolidated   Variation 
In MILLION $  2Q16   3Q16   4Q16   1Q17   2Q17   QoQ   YoY 
                             
Net financial income   4,154.9    3,972.2    4,242.1    4,640.4    5,244.8    13%   26%
Provision for loan losses   -298.5    -242.4    -354.0    -361.4    -469.0    30%   57%
Net fee income   1,272.6    1,398.0    1,532.2    1,667.0    1,800.2    8%   41%
    5,129.0    5,127.8    5,420.3    5,946.0    6,576.0    11%   28%
Administrative expenses   -2,437.0    -2,598.0    -2,814.8    -2,963.5    -3,044.2    3%   25%
Operating result   2,692.0    2,529.8    2,605.5    2,982.5    3,531.8    18%   31%
Minority interest in subsidiaries   -14.7    -12.6    -16.7    -15.8    -19.1    21%   30%
Net other income   100.2    17.4    -52.7    -0.8    -189.0    23525%   -289%
Net income before income tax   2,777.5    2,534.6    2,536.1    2,965.9    3,323.7    12%   20%
Income tax   -972.2    -902.0    -840.8    -1,201.9    -1,308.4    9%   35%
NET INCOME   1,805.3    1,632.6    1,695.3    1,764.0    2,015.3    14%   12%

 

The Bank’s 2Q17 financial income totaled Ps.8.4 billion, 10% or Ps.754 million higher than in 1Q17 and 11% higher (Ps.824 million) YoY.

 

Interest on loans represented 77% of total financial income in 2Q17. Interest on loans was 6% or Ps.363 million higher than 1Q17s level due to a 11% increase in the average volume of the loan portfolio and a decrease in the average interest lending rates of 130bp. On an annual basis, interest on loans grew 21% or Ps.1.1 billion.

 3 

 

 

2Q17 Earnings Release

 

In 2Q17, net income from government and private securities increased 57% or Ps.492 million QoQ, mainly due to higher LEBCAs volume and income; however this increase in LEBACs result was offset by a decrease in income from Other Government and Private Securities. On an annual basis, net income from government and private securities decreased 32% or Ps.655 million.

 

In the quarter, an increase of 2% in income from Guaranteed Loans and in CER Adjustment was observed. On an annual basis, income from Guaranteed Loans and in CER Adjustment decreased 56% or Ps.40 million.

 

Income from differences in quoted prices of gold and foreign currency increased 166% or Ps.264 million QoQ mainly due to higher income the long position in foreign currency. On an annual basis a Ps.353 million increase was experienced.

 

Also in the quarter, other financial income was 77% or Ps.368 million lower compared to 1Q17 mainly due to lower interest on REPOs. On an annual basis, other financial income was 97% or Ps.55 million higher.

 

FINANCIAL INCOME  MACRO Consolidated   Variation 
In MILLION  $  2Q16   3Q16   4Q16   1Q17   2Q17   QoQ   YoY 
                             
Interest on cash and due from banks   0.4    0.4    0.1    0.8    0.1    -88%   -75%
Interest on loans to the financial sector   55.5    71.8    88.0    101.2    98.9    -2%   78%
Interest on overdrafts   652.9    670.7    650.5    650.4    621.4    -4%   -5%
Interest on documents   373.1    390.9    399.7    374.0    390.1    4%   5%
Interest on mortgages loans   184.5    183.8    176.6    179.0    186.6    4%   1%
Interest on pledges loans   89.7    84.2    86.3    97.7    111.2    14%   24%
Interest on credit cards loans   1,012.6    977.9    1,041.1    1,071.8    1,085.9    1%   7%
Interest on financial leases   23.9    21.9    20.6    20.1    22.2    10%   -7%
Interest on other loans   2,921.3    3,157.8    3,333.6    3,565.4    3,906.3    10%   34%
Net Income from government & private securities (1)   2,015.7    1,608.5    1,583.0    868.9    1,360.7    57%   -32%
Interest on other receivables from financial interm.   1.4    2.0    1.6    0.9    4.0    344%   186%
Income from Guaranteed Loans - Decree 1387/01   7.7    10.1    8.9    3.1    0.0    -100%   -100%
CER adjustment   64.7    76.6    57.7    28.6    32.2    13%   -50%
CVS adjustment   0.2    0.2    0.2    0.1    0.1    0%   -50%
Difference in quoted prices of gold and foreign currency   70.8    100.4    86.9    159.5    423.9    166%   499%
Other   56.2    55.7    37.8    478.9    110.9    -77%   97%
Total financial income   7,530.6    7,412.9    7,572.6    7,600.4    8,354.5    10%   11%
                                    
(1) Net Income from government & private securities                                   
LEBACs   1,079.0    1,101.9    1,200.8    537.5    1,270.5    136%   18%
Other Govermnet & Private Securities   936.7    506.6    382.2    331.4    90.2    -73%   -90%
Total   2,015.7    1,608.5    1,583.0    868.9    1,360.7    57%   -32%

 

The Bank’s 2Q17 financial expense totaled Ps.3.1 billion, increasing 5% (Ps.150 million) compared to the previous quarter and decreasing 8% (Ps.266 million) compared to 2Q16.

 

In 2Q17, interest on deposits represented 69% of the Bank’s total financial expense, increasing Ps.9 million QoQ. This increase was mainly driven by a 2% increase in time deposits volume and a 30bp decrease in the average time deposit interest rate. On a yearly basis, interest on deposits decreased 21% or Ps.556 million.

 

Other financial expense was increased 4% or Ps.28 million QoQ and increased 23% or Ps.128 million YoY. This increase in other financial expense is mainly due to higher Provincial Taxes.

 

 4 

 

 

2Q17 Earnings Release

 

FINANCIAL EXPENSE  MACRO Consolidated   Variation 
In MILLION $  2Q16   3Q16   4Q16   1Q17   2Q17   QoQ   YoY 
                             
Interest on checking accounts   0.0    0.0    0.0    0.0    0.0    0%   0%
Interest on saving accounts   22.9    22.8    23.5    24.0    26.1    9%   14%
Interest on time deposits   2,676.6    2,700.7    2,452.8    2,109.8    2,117.0    0%   -21%
Interest on interfinancing received loans   0.1    0.7    1.2    1.4    2.1    50%   2000%
Interest on other financing from the finan. institu.   0.2    0.2    -0.5    0.0    0.5    0%   150%
Interest on subordinated bonds   51.3    55.1    117.2    105.2    106.9    2%   108%
Other Interest   1.4    1.1    0.8    0.7    0.7    0%   -50%
Interest on other liabilities from fin intermediation   34.9    36.3    38.9    16.2    122.3    655%   250%
CER adjustment   2.7    3.0    2.9    2.8    5.1    82%   89%
Contribution to Deposit Guarantee Fund   35.5    38.6    44.5    49.4    50.5    2%   42%
Other   550.1    582.2    649.2    650.5    678.5    4%   23%
Total financial expense   3,375.7    3,440.7    3,330.5    2,960.0    3,109.7    5%   -8%

 

As of 2Q17, the Bank’s accumulated net interest margin was 17.8%, lower than the 18.3% posted in 1Q17 and then the 18.8% posted in 2Q16. Had income from government and private securities and guaranteed loans been excluded, the Bank’s accumulated net interest margin would have been 16.9% in 2Q17, lower than the 17.5% posted in 1Q17 but higher than the 15.3% posted in 2Q16.

 

ASSETS & LIABILITIES PERFORMANCE  MACRO Consolidated 
In MILLON $  2Q16   3Q16   4Q16   1Q17   2Q17 
Yields & rates in annualized nominal %  AVERAGE
BALANCE		   INT   AVERAGE
BALANCE		   INT   AVERAGE
BALANCE		   INT   AVERAGE
BALANCE		   INT   AVERAGE
BALANCE		   INT 
                                         
Interest-earning assets                                                  
Goverment Securities   20,414.7    35.4%   22,933.0    25.4%   25,904.9    23.2%   14,625.4    22.9%   24,753.8    21.7%
Loans   65,811.0    32.9%   72,253.9    31.1%   80,012.5    29.2%   89,747.5    27.6%   98,881.9    26.2%
Private Sector   64,943.9    32.7%   71,261.2    30.8%   78,975.2    29.1%   88,893.2    27.5%   98,275.7    26.2%
Public Sector   867.1    49.3%   992.7    49.6%   1,037.3    35.2%   854.3    32.8%   606.2    28.5%
Financial trusts   497.8    35.9%   394.9    31.0%   393.5    35.3%   739.1    25.9%   697.7    25.4%
Other interest-earning assets   3,875.8    24.4%   3,535.9    19.0%   2,586.2    11.4%   9,578.4    19.4%   3,296.4    11.1%
Total interest-earning assets   90,599.3    33.1%   99,117.7    29.3%   108,897.1    27.3%   114,690.4    26.3%   127,629.8    24.9%
                                                   
Non interest-earning assets   26,166.1         29,986.8         38,880.4         41,251.0         38,319.7      
Total Average Assets   116,765.4         129,104.5         147,777.5         155,941.4         165,949.5      
                                                   
Interest-bearing liabilities                                                  
Checking accounts (*)   2,838.4    0.0%   2,783.8    0.0%   1,727.6    0.0%   1,051.7    0.0%   1,639.3    0.0%
Saving accounts (*)   14,940.7    0.6%   17,288.7    0.5%   20,217.1    0.5%   24,245.1    0.4%   26,043.1    0.4%
Time deposits (*)   45,867.7    23.5%   51,054.3    21.1%   54,751.6    17.8%   54,146.9    15.8%   54,977.2    15.5%
Corporate Bonds   3,645.3    9.2%   3,831.8    9.3%   7,561.5    8.0%   6,932.6    6.8%   9,100.5    9.9%
BCRA   3.7    8.2%   1.2    5.2%   0.2    0.0%   0.2    0.0%   0.2    0.0%
Other interest-bearing liabilities   298.5    26.7%   260.0    32.7%   543.3    15.2%   571.4    17.7%   560.9    13.8%
Total interest-bearing liabilities   67,594.3    16.7%   75,219.8    15.0%   84,801.3    12.4%   84,801.3    10.6%   92,321.2    10.4%
                                                   
Non interest-bearing liabilities                                                  
Demand deposits (*)   23,781.8         26,586.1         30,224.8         33,339.6         33,383.3      
Other non interest-bearing libilities & equity   25,389.3         27,298.6         32,751.4         35,653.9         40,245.0      
Total non interest-bearing liab. & equity   49,171.1         53,884.7         62,976.2         68,993.5         73,628.3      
                                                   
Total Average Liabilities & Equity   116,765.4         129,104.5         147,777.5         155,941.4         165,949.5      
                                                   
Assets Performance        7,463.2         7,311.8         7,485.0         7,439.8         7,931.7 
Liabilities Performance        2,804.3         2,836.1         2,652.4         2,278.3         2,390.8 
Net Interest Income        4,658.9         4,475.7         4,832.6         5,161.5         5,540.9 
Total interest-earning assets        90,599.3         99,117.7         108,897.1         114,690.4         127,629.8 
Net Interest Margin (NIM)        20.7%        18.0%        17.7%        18.3%        17.4%

 

(*) The average cost of funds is calculated only considering deposits with and without interest-bearnig cost.

 

In 2Q17, Banco Macro’s net fee income totaled Ps.1.8 billion, 8% or Ps.133 million higher than 1Q17, and 41% or Ps.528 million higher than 2Q16.

 

In the quarter, fee income increased 7% or Ps.174 million. Fees charged on deposit accounts and credit related fees stand out, with a 6% and 73% increase respectively, which was offset by a 9% decrease in credit and debit card fees as a consequence of interchange rate reduction as of April 2017. On a yearly basis, fee income increased 38% or Ps.713 million, with fees charged on deposit accounts and credit and debit cards fees standing out (36% and 37% increase, respectively).

 

 5 

 

 

2Q17 Earnings Release

 

In the quarter, total fee expenses increased 6% or Ps.41 million, with higher charges paid to debit/credit card brands and higher other fee expenses. On a yearly basis, fee expenses increased 31% or Ps.185 million, with similar concepts standing out (40% and 77% respectively).

 

NET FEE INCOME  MACRO Consolidated   Variation 
In MILLION $  2Q16   3Q16   4Q16   1Q17   2Q17   QoQ   YoY 
                             
Fee charges on deposit accounts   1,081.3    1,192.4    1,296.1    1,377.5    1,467.0    6%   36%
Debit and credit card fees   517.3    583.7    685.4    694.5    707.0    2%   37%
Other fees related to foreign trade   30.5    32.1    33.4    33.0    36.3    10%   19%
Credit-related fees   31.7    33.9    69.6    55.9    96.5    73%   204%
Lease of safe-deposit boxes   27.1    31.0    35.1    37.4    42.7    14%   58%
Other   174.9    187.0    188.3    203.0    226.0    11%   29%
Total fee income   1,862.8    2,060.1    2,307.9    2,401.3    2,575.5    7%   38%
                                    
Debit and Credit card expenses   287.8    343.3    380.8    364.7    402.7    10%   40%
Turnover tax and municipal assessments   101.5    109.0    119.2    137.7    151.6    10%   49%
Comission paid to lending agencies   75.9    56.2    47.3    34.7    0.0    -100%   -100%
Foreign trade comissions   2.2    3.0    5.0    4.2    4.2    0%   91%
Others   122.8    150.6    223.4    193.0    216.8    12%   77%
Total fee expense   590.2    662.1    775.7    734.3    775.3    6%   31%
                                    
Net fee income   1,272.6    1,398.0    1,532.2    1,667.0    1,800.2    8%   41%

 

In 2Q17 Banco Macro’s administrative expenses totaled Ps.3.0 billion, 3% or Ps.81 million higher than the previous quarter. Administrative expenses increased 25% or Ps.607 million YoY due to the increase in personnel expenses (mainly higher salaries) and other operating expenses.

 

Personnel expenses decreased 1% or Ps.12 million QoQ. Personnel expenses increased 23% or Ps.340 million YoY, due to the annual salary increase agreed with the Unions.

 

As of June 2017, the accumulated efficiency ratio reached 45%, compared to the 47% posted in 1Q17 and 46.3% posted in 2Q16. In 2Q17 Administrative expenses grew 3%, in line with the Bank’s focus of improving efficiency, while net financial income and net fee income grew 12%.

 

ADMINISTRATIVE EXPENSES  MACRO Consolidated   Variation 
In MILLION $  2Q16   3Q16   4Q16   1Q17   2Q17   QoQ   YoY 
                             
Personnel expenses   1,492.9    1,616.5    1,684.0    1,844.9    1,832.9    -1%   23%
Directors & statutory auditors´fees   84.3    80.1    82.5    86.7    98.6    14%   17%
Other professional fees   70.7    68.9    85.7    78.0    87.0    12%   23%
Advertising & publicity   35.3    39.4    75.0    43.5    38.3    -12%   8%
Taxes   137.3    132.1    149.9    162.5    178.4    10%   30%
Depreciation of equipment   49.5    52.6    56.6    59.0    60.2    2%   22%
Amortization of organization costs   48.5    51.3    54.0    60.1    64.1    7%   32%
Other operating expenses   332.2    362.6    386.4    399.5    417.3    4%   26%
Other   186.3    194.5    240.7    229.3    267.4    17%   44%
Total Administrative Expenses   2,437.0    2,598.0    2,814.8    2,963.5    3,044.2    3%   25%
                                    
Total Employees   8,768    8,626    8,617    8,675    8,702    0%   -1%
Branches   438    444    444    445    449    1%   3%
Efficiency ratio   44.9%   48.4%   48.7%   47.0%   43.2%          
                                    
Accumulated efficiency ratio   46.3%   47.0%   47.5%   47.0%   45.0%          

 

 6 

 

 

2Q17 Earnings Release

 

In 2Q17, the Bank’s net other income/losses totaled a Ps.189 million loss. This loss was mainly due to a Ps.160 million gain in Other Income (Ps.51 million from Recovered loans and reversed allowances, Ps.70 million Cash Dividend from VISA, Ps.24 million excess tax provision) and a Ps.348 million Other loss, mainly related to the Primary Follow On Equity Offering expenses (Ps.255 million), Class B Notes Offering expenses (Ps.28 million) and charges for other receivables and other allowances (Ps.65 million).

 

NET OTHER INCOME/LOSSES  MACRO Consolidated   Variation 
In MILLION $  2Q16   3Q16   4Q16   1Q17   2Q17   QoQ   YoY 
                             
Other Income                                   
Penalty interest   21.8    21.3    19.5    17.0    19.3    14%   -11%
Recovered loans and  reversed allowances   55.0    49.2    85.5    88.2    139.3    58%   153%
Other   109.3    48.4    49.3    39.3    145.5    270%   33%
Total Other Income   186.1    118.9    154.3    144.5    304.1    110%   63%
                                    
Other Expense                                   
Charges for other receivables uncollectibility and other allowances   39.4    51.4    79.7    69.6    134.8    94%   242%
Goodwill amortization   3.2    2.0    1.4    1.4    1.4    0%   -56%
Other Expense   43.3    48.2    125.9    74.3    356.9    380%   724%
Total Other Expense   85.9    101.6    207.0    145.3    493.1    239%   474%
                                    
Net Other Income/Losses   100.2    17.4    -52.7    -0.8    -189.0    23525%   -289%

 

In 2Q17, Banco Macro's effective income tax rate was 39.4%, compared to 40.5% in 1Q17.

 

Financial Assets

 

Private sector financing

 

The volume of “core” financing to the private sector (including loans, financial trust and leasing portfolio) totaled Ps.105.2 billion, increasing 12% or Ps.11.3 billion QoQ and 49% or Ps.34.5 billion YoY.

 

Within commercial loans, growth was driven by Documents and Others, which grew 15% and 30% QoQ, respectively. Banco Macro continued supporting the Argentine productive sector through the “Credit Line for Productive Financing and Financial Inclusion”. As of 2Q17, Ps.5.4 billion loans have been accounted under this program, plus a residual loan portfolio from the former “Productive Investment Program (LIP)” for Ps.2.4 billion, totaling together, Ps.7.8 billion. These lines of financing represented 7% of our financing to the private sector.

 

The main growth in consumer loans was driven by personal loans and credit card loans which grew 12% and 5% QoQ, respectively.

 

As of 2Q17, Banco Macro´s market share over private sector loans was 8.3%, 50bp higher than in 2Q16.

 

 7 

 

 

2Q17 Earnings Release

 

FINANCING TO THE PRIVATE SECTOR  MACRO Consolidated   Variation 
In MILLION $  2Q16   3Q16   4Q16   1Q17   2Q17   QoQ   YoY 
                             
Overdrafts   7,679.9    8,943.5    8,837.7    10,264.7    9,638.2    -6%   25%
Discounted documents   7,449.4    9,406.4    11,198.9    10,679.5    12,332.3    15%   66%
Mortgages loans   3,179.4    3,409.6    4,158.6    4,498.2    5,195.5    16%   63%
Pledges loans   1,767.3    1,819.6    2,285.1    2,471.5    3,263.4    32%   85%
Personal loans   25,761.3    27,251.4    29,784.8    33,365.0    37,342.5    12%   45%
Credit Card loans   16,052.9    16,305.5    18,851.6    19,526.1    20,590.9    5%   28%
Others   7,910.4    8,230.5    10,465.8    11,739.1    15,281.5    30%   93%
Total loan portfolio   69,800.6    75,366.5    85,582.5    92,544.1    103,644.3    12%   48%
                                    
Financial trusts   520.9    715.7    954.7    1,028.8    1,121.5    9%   115%
Leasing   393.0    369.0    369.1    376.9    478.9    27%   22%
Total financing to the private sector   70,714.5    76,451.2    86,906.3    93,949.8    105,244.7    12%   49%
                                    
Market share over loan portfolio   7.8%   8.0%   8.1%   8.3%   8.3%          

 

Public Sector Assets

 

In 2Q17, the Bank’s public sector assets (excluding LEBACs) to total assets ratio was 1.9%, unchanged from the 1.9% posted in the previous quarter and lower than the 4.9% posted in 2Q16.

 

In 2Q17, a 115% increase in Government Securities (LEBACs and Others) position stands out.

 

PUBLIC SECTOR ASSETS  MACRO Consolidated   Variation 
In MILLION $  2Q16   3Q16   4Q16   1Q17   2Q17   QoQ   YoY 
                             
LEBACs   12,220.5    20,259.3    15,964.3    11,406.9    24,544.4    115%   101%
Other   5,068.2    3,593.6    4,205.4    2,411.3    2,975.4    23%   -41%
Government securities   17,288.7    23,852.9    20,169.7    13,818.2    27,519.8    99%   59%
Guaranteed loans   586.4    662.2    717.6    0.0    0.0    0%   -100%
Provincial loans   384.1    346.6    814.9    480.0    497.3    4%   29%
Loans   970.5    1,008.8    1,532.5    480.0    497.3    4%   -49%
Purchase of government bonds   35.3    35.9    37.0    36.1    38.3    6%   8%
Other receivables   35.3    35.9    37.0    36.1    38.3    6%   8%
                                    
TOTAL PUBLIC SECTOR ASSETS   18,294.5    24,897.6    21,739.2    14,334.3    28,055.4    96%   53%
                                    
TOTAL PUBLIC SECTOR LIABILITIES   29.9    114.5    23.6    19.5    15.2    -22%   -49%
                                    
Net exposure   18,264.6    24,783.1    21,715.6    14,314.8    28,040.2    96%   54%
                                    
TOTAL PUBLIC SECTOR ASSETS (net of LEBAC / NOBAC )   6,074.0    4,638.3    5,774.9    2,927.4    3,511.0    20%   -42%
                                    
TOTAL PUBLIC SECTOR ASSETS (net of LEBAC / NOBAC) /TOTAL ASSETS   4.9%   3.4%   3.7%   1.9%   1.9%          

 

 8 

 

 

2Q17 Earnings Release

 

Funding

 

Deposits

 

Banco Macro’s deposit base totaled Ps.123.7 billion in 2Q17, growing 7% or Ps.8.5 billion QoQ and 36% or Ps.32.7 billion YoY and representing 81% of the Bank’s total liabilities.

 

On a quarterly basis, private sector deposits grew 10% or Ps.10.7 billion, while public sector deposits decreased 17% or Ps.2.2 billion.

 

The increase in private sector deposits was led by sight deposits, which grew 18% or Ps.8.4 billion QoQ. In addition, time deposits increased 12% or Ps.5.9 billion QoQ.

 

As of 2Q17, Banco Macro´s market share over private sector deposits was 6.9%, 10bp higher than in 2Q16.

 

DEPOSITS  MACRO Consolidated   Variation 
In MILLION $  2Q16   3Q16   4Q16   1Q17   2Q17   QoQ   YoY 
                             
Public sector   10,548.6    14,531.6    9,552.2    13,007.6    10,804.0    -17%   2%
                                    
Financial sector   44.4    42.0    55.8    50.9    57.4    13%   29%
                                    
Private sector   80,346.8    87,326.3    102,331.7    102,124.4    112,796.0    10%   40%
Checking accounts   16,796.4    17,777.6    17,686.2    18,559.7    19,951.1    7%   21%
Savings accounts   19,406.5    19,850.3    27,896.0    27,117.5    34,087.9    26%   71%
Time deposits   41,108.1    46,146.1    47,652.4    47,495.8    53,428.8    12%   18%
Other   3,035.8    3,552.3    9,097.1    8,951.4    5,328.2    -40%   203%
Total   90,939.8    101,899.9    111,939.7    115,182.9    123,657.4    7%   36%
                                    
Pesos   76,789.6    86,045.1    88,640.4    93,023.1    100,308.9    8%   31%
Foreign Currency   14,150.2    15,854.8    23,299.3    22,159.8    23,348.5    5%   65%
                                    
Market share over private deposits   6.8%   7.0%   6.8%   6.7%   6.9%          

 

Other sources of funds

 

In 2Q17, the total amount of other sources of funds increased 57% or Ps.17.2 billion compared to 1Q17. In 2Q17 Shareholders’ Equity increased 50% or Ps. 12.0 billion as a result of the Primary Follow-On Equity Offering (74.000.000 Class B ordinary shares in the amount of US$ 666 million); the positive result posted in the quarter and was partially offset by the distribution of a Ps.701 million cash dividend. Non-Subordinated Corporate Bonds increased during 2Q17 due to the Class B Peso Linked Notes offering in the amount of US$ 300 million.

 

OTHER SOURCES OF FUNDS  MACRO Consolidated   Variation 
In MILLION $  2Q16   3Q16   4Q16   1Q17   2Q17   QoQ   YoY 
                             
Central Bank of Argentina   10.6    7.1    8.4    8.4    10.4    24%   -2%
Banks and international institutions   42.6    38.6    129.9    133.0    347.1    161%   715%
Financing received from Argentine financial institutions   40.6    134.0    142.7    49.3    78.8    60%   94%
Subordinated corporate bonds   2,245.3    2,352.7    6,407.8    6,322.3    6,709.1    6%   199%
Non-subordinated corporate bonds   1,643.3    1,646.6    1,684.9    0.0    4,620.6    0%   181%
Shareholders´ equity   18,778.0    20,410.6    22,105.9    23,869.9    35,827.5    50%   91%
Total other source of funds   22,760.4    24,589.6    30,479.6    30,382.9    47,593.5    57%   109%

 

 9 

 

 

2Q17 Earnings Release

 

In 2Q17, Banco Macro’s average cost of funds totaled 7.3%. This was mainly due to the decrease in the liabilities interest rate, and to Banco Macro’s transactional deposits, which represent approximately 49% of its total deposit base as of 2Q17. These accounts are low cost and are not sensitive to interest rate increases.

 

Liquid Assets

 

In 2Q17, the Bank’s liquid assets amounted to Ps.65.8 billion, showing a 28% or Ps.14.3 billion increase QoQ due to the Primary Follow-On Equity Offering, and a 76% or Ps.28.5 billion increase on a yearly basis.

 

In 2Q17, Banco Macro experienced an increase in Cash of Ps.7.5 billion, and an increase in LEBACs own portfolio of Ps.13.0 billion. This increase in LEBACs position was partially offset by a Ps. 6.4 billion decrease in REPOs.

 

In 2Q17 Banco Macro’s liquid assets to total deposits ratio reached 53.2%.

 

LIQUID ASSETS  MACRO Consolidated   Variation 
In MILLION  $  2Q16   3Q16   4Q16   1Q17   2Q17   QoQ   YoY 
                             
Cash   18,457.0    22,353.1    36,089.2    29,014.7    36,477.2    26%   98%
Guarantees for compensating chambers   1,934.1    2,031.1    2,094.0    2,101.6    2,174.3    3%   12%
Call   265.0    548.0    5.0    115.0    235.0    104%   -11%
Reverse repos from other securities   16.2    -    -    0.8    38.6    4725%   138%
Reverse repos from LEBAC/NOBAC   4,260.5    577.3    19.4    8,609.4    2,242.7    -74%   -47%
LEBAC / NOBAC own portfolio   12,337.2    20,050.4    15,125.9    11,632.3    24,593.8    111%   99%
Total   37,270.0    45,559.9    53,333.5    51,473.8    65,761.6    28%   76%
                                    
Liquid assets to total deposits   41.0%   44.7%   47.6%   44.7%   53.2%          

 

Solvency

 

Banco Macro continued showing high solvency levels in 2Q17 with an integrated capital (RPC) of Ps.41.8 billion over a total capital requirement of Ps.13.0 billion. Banco Macro´s excess capital in 2Q17 was 222% or Ps.28.8 billion.

 

The capitalization ratio (as a percentage of risk-weighted assets- RWA) was 26.3% in 2Q17.

 

Both the excess capital and the capitalization ratio were affected by the Primary Follow-On Equity Offering of 74.000.000 Class B ordinary Shares (increase of Ps.10.7 billion in TIER 1) conducted in June 2017. Had the Equity Offering not been conducted the capitalization ratio (as a percentage of risk-weighted assets- RWA) would have been 21.8%.

 

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

 

 10 

 

 

2Q17 Earnings Release

 

MINIMUM CAPITAL REQUIREMENT  MACRO Consolidated   Variation 
In MILLION $  2Q16   3Q16   4Q16   1Q17   2Q17   QoQ   YoY 
                             
Credit risk requirement   6,662.7    6,986.9    7,634.6    7,945.2    9,410.4    18%   41%
Market risk requirement   477.6    253.9    267.2    115.6    863.4    647%   81%
Operational risk requirement   2,027.2    2,203.7    2,368.0    2,503.9    2,715.0    8%   34%
Total capital requirements   9,167.5    9,444.6    10,269.8    10,564.8    12,988.8    23%   42%
                                    
Ordinary Capital Level 1 (COn1)   17,796.9    19,571.0    21,258.3    23,047.6    34,887.9    51%   96%
Deductible concepts Level 1 (COn1)   -600.7    -638.6    -684.3    -791.9    -819.5    3%   36%
Aditional Capital Level 1 (CAn1)   275.1    275.1    0.0    12.8    14.6    14%   -95%
Capital Level 2 (COn2)   709.7    765.1    7,217.9    7,113.5    7,715.5    8%   987%
Integrated capital - RPC (i)   18,181.0    19,972.5    27,791.9    29,381.9    41,798.4    42%   130%
                                    
Excess capital   9,013.5    10,528.0    17,522.1    18,817.1    28,809.6    53%   220%
                                    
Risk-weighted assets - RWA (ii)   112,168.3    115,513.4    125,593.1    129,167.1    158,934.5    23%   42%
                                    
Regulatory Capital ratio [(i)/(ii)]   16.2%   17.3%   22.1%   22.7%   26.3%          
                                    
Ratio TIER 1 [Capital Level 1/RWA]   15.6%   16.6%   16.4%   17.2%   21.4%          

 

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

 

Asset Quality

 

In 2Q17, Banco Macro’s non-performing to total financing ratio reached a level of 1.27%, lower than the 1.35% posted in 1Q17, and lower than the 1.52% posted in 2Q16.

 

Commercial portfolio non-performing loans decreased 22bp, from 0.87% in 1Q17 to 0.65% in 2Q17, meanwhile consumer portfolio non-performing loans were unchanged, at 1.65% in 2Q17 (1.64% in 1Q17).

 

The coverage ratio reached 168.08% in 2Q17.

 

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

 

ASSET QUALITY  MACRO Consolidated   Variation 
In MILLION $  2Q16   3Q16   4Q16   1Q17   2Q17   QoQ   YoY 
                             
Commercial portfolio   27,614.4    30,075.3    34,989.5    36,653.4    41,052.2    12%   49%
Non-performing   397.1    360.3    194.9    320.1    265.4    -17%   -33%
Consumer portfolio   48,165.3    50,485.1    56,613.1    61,045.6    68,524.1    12%   42%
Non-performing   754.0    817.8    853.6    1,003.0    1,130.4    13%   50%
Total portfolio   75,779.7    80,560.4    91,602.6    97,699.0    109,576.3    12%   45%
Non-performing   1,151.1    1,178.1    1,048.5    1,323.1    1,395.8    5%   21%
Total non-performing/ Total portfolio   1.52%   1.46%   1.14%   1.35%   1.27%          
                                    
Total allowances   1,732.5    1,827.8    1,850.7    2,063.3    2,346.1    14%   35%
Coverage ratio w/allowances   150.51%   155.15%   176.51%   155.94%   168.08%          

 

 11 

 

 

2Q17 Earnings Release

 

CER Exposure and Foreign Currency Position

 

CER EXPOSURE  MACRO Consolidated   Variation 
In MILLION $  2Q16   3Q16   4Q16   1Q17   2Q17   QoQ   YoY 
                             
CER adjustable ASSETS                                   
Guaranteed loans   586.4    662.2    717.5    0.0    0.0    0%   0%
Private sector loans   0.8    1.1    3.3    12.5    41.7    234%   5113%
Other loans   0.5    0.7    0.2    0.2    1.7    750%   240%
Total CER adjustable assets   587.7    664.0    721.0    12.7    43.4    242%   -93%
                                    
CER adjustable LIABILITIES                                   
Deposits (*)   0.9    35.7    48.7    38.4    77.3    101%   8489%
Other liabilities from financial intermediation   29.6    27.2    23.4    19.3    15.1    -22%   -49%
Total CER adjustable liabilities   30.5    62.9    72.1    57.7    92.4    60%   203%
                                    
NET CER EXPOSURE   557.2    601.1    648.9    -45.0    -49.0    9%   -109%

 

(*) Includes Time Deposits CER adjustable (UVAs)

 

FOREIGN CURRENCY POSITION  MACRO Consolidated   Variation 
In MILLION $  2Q16   3Q16   4Q16   1Q17   2Q17   QoQ   YoY 
                             
Cash   9,955.9    9,254.3    21,394.9    16,141.8    21,575.2    34%   117%
Government and private securities   3,515.3    3,269.3    1,636.4    1,602.8    1,976.5    23%   -44%
Loans   4,843.6    7,367.4    10,088.3    11,390.1    16,555.9    45%   242%
Other receivables from financial intermediation   759.4    833.4    524.1    476.1    1,061.9    123%   40%
Other assets   266.6    300.4    346.1    429.9    534.0    24%   100%
Total Assets   19,340.8    21,024.8    33,989.8    30,040.7    41,703.5    39%   116%
Deposits   14,150.2    15,854.8    23,299.4    22,159.9    23,348.6    5%   65%
Other liabilities from financial intermediation   1,108.8    844.7    1,142.5    1,205.3    2,360.3    96%   113%
Non-subordinated corporate bonds   1,643.2    1,646.5    1,684.9    0.0    0.0    0%   -100%
Subordinated corporate bonds   2,245.3    2,352.7    6,407.8    6,322.3    6,709.1    6%   199%
Other liabilities   24.6    3.3    1.8    2.2    5.9    168%   -76%
Total Liabilities   19,172.1    20,702.0    32,536.4    29,689.7    32,423.9    9%   69%
                                    
NET FX POSITION   168.7    322.8    1,453.4    351.0    9,279.6    2544%   5401%

 

 12 

 

 

2Q17 Earnings Release

 

Relevant and Recent Events

 

·Dividends. During June 2017 pursuant to the resolution adopted by the General and Special Shareholders' Meeting held on April 28th 2017, the BCRA authorization from May 29th 2017 and the resolution adopted by the Board of Directors at the meeting held on May 30th, 2017 the Bank paid a Cash Dividend of Ps.701,475,633.60 (Ps.1.20 per share) which represented 120% of the outstanding corporate capital of 584,563,028 (pre Equity Offering)

 

·Primary Follow-On Equity Offering. Corporate Capital Increase.

 

o74,000,000 Class B Common Shares. On June 12, 2017 Banco Macro conducted a Primary Follow-On Equity Offering in the amount of nominal value Ps.74,000,000 through the issuance of 74,000,000 new Class B book-entry common shares, entitled to 1 vote per share and of par value Ps.1 each. Such capital increase represented an increment of approximately 12.66% of the capital stock that grew from the nominal value of Ps.584,563,028 to Ps. 658,563,028.

 

oFull Exercise of Underwriters’ Oversubscription Option. The International Underwriters exercised their option to purchase additional 10,689,980 Class B common shares, and local shareholders exercised their preemptive rights in the amount of 410,013 shares, resulting in a total number of 11,099,993 Class B Common Shares to be issued. This additional shares were subscribed on July 13, 2017 after this increase the capital stock grew from the nominal value of Ps.658,563,028 to Ps.669,663,021.

 

·Credit Line for Productive Financing and Financial Inclusion 2017. In 1H17 the Bank successfully fulfilled the quota established under “Credit Line for Productive Financing and Financial Inclusion” for the first semester of 2017.

 

Regulatory Changes

 

·Credit Line for Productive Financing and Financial Inclusion SH17. In June 2017, through Communication “A” 6259 the Central Bank of Argentina (BCRA) established new guidelines for the second semester of 2017. Financial entities must reach a quota for this type of financing equivalent to 18% of the non-financial private sector peso deposits, between 07.01.2017 and 12.31.2017. The calculation must be done, based on the 05.2017 monthly average daily balances.

 

·International Financial Reporting Standards (IFRS) As of June 30, 2017 according to IFRS the adjustment to Banco Macro’s equity would be Ps.3.9 billion totaling Ps.39.7 billion, 11% higher than the Ps.35.8 billion reported under BCRA’s rules.

 

·Minimum Cash Requirements. In July 2017, through Communication “A” 6288 the Central Bank of Argentina (BCRA) established that minimum cash requirements derived from government securities time deposits should be integrated in pesos or in local government securities included in the volatility list published by the Central Bank of Argentina, providing that the security is denominated in the same currency. In the case of U$S denominated securities or government securities in foreign currency the minimum cash requirements should be integrated in the same currency as the underlying security.

 

 13 

 

 

2Q17 Earnings Release

 

 

QUARTERLY BALANCE SHEET  MACRO Consolidated   Variation 
In MILLION $  2Q16   3Q16   4Q16   1Q17   2Q17   QoQ   YoY 
                             
ASSETS   127,981.1    136,780.4    154,999.0    166,992.3    187,767.9    12%   47%
Cash   18,457.0    22,353.1    36,089.2    29,014.7    36,477.2    26%   98%
Government and Private Securities   25,149.0    27,230.8    19,846.3    23,777.6    31,363.9    32%   25%
-LEBAC/NOBAC   16,597.7    20,627.7    15,145.3    20,241.7    26,836.5    33%   62%
-Other   8,551.3    6,603.1    4,701.0    3,535.9    4,527.4    28%   -47%
Loans   70,918.6    76,870.5    87,973.0    94,083.3    105,369.4    12%   49%
to the non-financial government sector   970.5    1,008.8    1,532.5    480.0    497.3    4%   -49%
to the financial sector   864.7    1,317.5    1,730.6    1,890.1    2,251.8    19%   160%
to the non-financial private sector and foreign residents   70,790.2    76,347.0    86,540.4    93,757.3    104,970.2    12%   48%
-Overdrafts   7,679.9    8,943.5    8,837.7    10,264.7    9,638.2    -6%   25%
-Documents   7,449.4    9,406.4    11,198.9    10,679.5    12,332.3    15%   66%
-Mortgage loans   3,179.4    3,409.6    4,158.6    4,498.2    5,195.5    16%   63%
-Pledge loans   1,767.3    1,819.6    2,285.1    2,471.5    3,263.4    32%   85%
-Personal loans   25,761.3    27,251.4    29,784.8    33,365.0    37,342.5    12%   45%
-Credit cards   16,052.9    16,305.5    18,851.6    19,526.1    20,590.5    5%   28%
-Other   7,910.4    8,230.5    10,465.8    11,739.1    15,281.5    30%   93%
-Accrued interest, adjustments, price differences receivables and unearned discount   989.6    980.5    957.9    1,213.2    1,325.9    9%   34%
Allowances   -1,706.8    -1,802.8    -1,830.5    -2,044.1    -2,322.9    14%   36%
Other receivables from financial intermediation   8,342.8    4,899.6    5,313.6    13,716.9    7,784.2    -43%   -7%
Receivables from financial leases   396.4    369.7    370.2    378.1    479.8    27%   21%
Investments in other companies   11.1    11.2    11.4    9.3    32.6    251%   194%
Other receivables   1,136.5    1,212.2    1,277.1    1,530.8    1,567.9    2%   38%
Other assets   3,569.7    3,833.3    4,118.2    4,481.6    4,665.9    4%   31%
LIABILITIES   109,203.1    116,369.8    132,893.1    143,122.4    151,940.4    6%   39%
Deposits   90,939.8    101,899.9    111,939.7    115,182.9    123,657.4    7%   36%
From the non-financial government sector   10,548.6    14,531.6    9,552.2    13,007.6    10,804.0    -17%   2%
From the financial sector   44.4    42.0    55.8    50.9    57.4    13%   29%
From the non-financial private sector and foreign residents   80,346.8    87,326.3    102,331.7    102,124.4    112,796.0    10%   40%
-Checking accounts   16,796.4    17,777.6    17,686.2    18,559.7    19,951.1    7%   19%
-Savings accounts   19,406.5    19,850.3    27,896.0    27,117.5    34,087.9    26%   76%
-Time deposits   41,108.1    46,146.1    47,652.4    47,495.8    53,428.8    12%   30%
-Other   3,035.8    3,552.3    9,097.1    8,951.4    5,328.2    -40%   76%
Other liabilities from financial intermediation   12,540.1    8,695.7    10,528.5    17,219.2    17,433.7    1%   39%
Subordinated corporate bonds   2,245.3    2,352.7    6,407.8    6,322.3    6,709.1    6%   199%
Other liabilities   3,477.9    3,421.5    4,017.1    4,398.0    4,140.2    -6%   19%
SHAREHOLDERS' EQUITY   18,778.0    20,410.6    22,105.9    23,869.9    35,827.5    50%   91%
                                    
LIABILITIES + SHAREHOLDERS' EQUITY   127,981.1    136,780.4    154,999.0    166,992.3    187,767.9    12%   47%

 

 14 

 

 

2Q17 Earnings Release

 

QUARTERLY INCOME STATEMENT  MACRO Consolidated   Variation 
In MILLION  $  2Q16   3Q16   4Q16   1Q17   2Q17   QoQ   YoY 
                             
Financial income   7,530.6    7,412.9    7,572.6    7,600.4    8,354.5    10%   11%
Interest on cash and due from banks   0.4    0.4    0.1    0.8    0.1    -88%   -75%
Interest on loans to the financial sector   55.5    71.8    88.0    101.2    98.9    -2%   78%
Interest on overdrafts   652.9    670.7    650.5    650.4    621.4    -4%   -5%
Interest on documents   373.1    390.9    399.7    374.0    390.1    4%   5%
Interest on mortgage loans   184.5    183.8    176.6    179.0    186.6    4%   1%
Interest on pledge loans   89.7    84.2    86.3    97.7    111.2    14%   24%
Interest on credit card loans   1,012.6    977.9    1,041.1    1,071.8    1,085.9    1%   7%
Interest on financial leases   23.9    21.9    20.6    20.1    22.2    10%   -7%
Interest on other loans   2,921.3    3,157.8    3,333.6    3,565.4    3,906.3    10%   34%
Income from government & private securities, net   2,015.7    1,608.5    1,583.0    868.9    1,360.7    57%   -32%
Interest on other receivables from fin. intermediation   1.4    2.0    1.6    0.9    4.0    344%   186%
Income from Guaranteed Loans - Decree 1387/01   7.7    10.1    8.9    3.1    0.0    -100%   -100%
CER adjustment   64.7    76.6    57.7    28.6    32.2    13%   -50%
CVS adjustment   0.2    0.2    0.2    0.1    0.1    0%   -50%
Difference in quoted prices of gold and foreign currency   70.8    100.4    86.9    159.5    423.9    166%   499%
Other   56.2    55.7    37.8    478.9    110.9    -77%   97%
Financial expense   -3,375.7    -3,440.7    -3,330.5    -2,960.0    -3,109.7    5%   -8%
Interest on checking accounts   0.0    0.0    0.0    0.0    0.0    0%   0%
Interest on saving accounts   -22.9    -22.8    -23.5    -24.0    -26.1    9%   14%
Interest on time deposits   -2,676.6    -2,700.7    -2,452.8    -2,109.8    -2,117.0    0%   -21%
Interest on interfinancing received loans   -0.1    -0.7    -1.2    -1.4    -2.1    50%   2000%
Interest on other financing from the financial institutions   -0.2    -0.2    0.5    0.0    -0.5    0%   150%
Interest on subordinated bonds   -51.3    -55.1    -117.2    -105.2    -106.9    2%   108%
Other Interest   -1.4    -1.1    -0.8    -0.7    -0.7    0%   -50%
Interests on other liabilities from fin. intermediation   -34.9    -36.3    -38.9    -16.2    -122.3    655%   250%
CER adjustment   -2.7    -3.0    -2.9    -2.8    -5.1    82%   89%
Contribution to Deposit Guarantee Fund   -35.5    -38.6    -44.5    -49.4    -50.5    2%   42%
Other   -550.1    -582.2    -649.2    -650.5    -678.5    4%   23%
Net financial income   4,154.9    3,972.2    4,242.1    4,640.4    5,244.8    13%   26%
Provision for loan losses   -298.5    -242.4    -354.0    -361.4    -469.0    30%   57%
                                    
Fee income   1,862.8    2,060.1    2,307.9    2,401.3    2,575.5    7%   38%
Fee expense   -590.2    -662.1    -775.7    -734.3    -775.3    6%   31%
Net fee income   1,272.6    1,398.0    1,532.2    1,667.0    1,800.2    8%   41%
                                    
Administrative expenses   -2,437.0    -2,598.0    -2,814.8    -2,963.5    -3,044.2    3%   25%
Minority interest in subsidiaries   -14.7    -12.6    -16.7    -15.8    -19.1    21%   30%
Net other income   100.2    17.4    -52.7    -0.8    -189.0    23525%   -289%
Earnings before income tax   2,777.5    2,534.6    2,536.1    2,965.9    3,323.7    12%   20%
Income tax   -972.2    -902.0    -840.8    -1,201.9    -1,308.4    9%   35%
                                    
Net income   1,805.3    1,632.6    1,695.3    1,764.0    2,015.3    14%   12%

 

 15 

 

 

2Q17 Earnings Release

 

QUARTERLY ANNUALIZED RATIOS  MACRO Consolidated 
   2Q16   3Q16   4Q16   1Q17   2Q17 
Profitability & performance                         
Net interest margin (1)   20.7%   18.0%   17.7%   18.3%   17.4%
Net interest margin adjusted (2)   15.3%   15.0%   15.6%   17.5%   16.3%
Net fee income ratio   23.4%   26.0%   26.5%   26.4%   25.6%
Efficiency ratio   44.9%   48.4%   48.7%   47.0%   43.2%
Net fee income as a percentage of adm expenses   52.2%   53.8%   54.4%   56.2%   59.1%
Return on average assets   6.2%   5.0%   4.6%   4.6%   4.9%
Return on average equity   39.8%   32.6%   31.2%   30.5%   30.8%
Liquidity                         
Loans as a percentage of total deposits   79.9%   77.2%   80.2%   83.5%   87.1%
Liquid assets as a percentage of total deposits   41.0%   44.7%   47.6%   44.7%   53.2%
Capital                         
Total equity as a percentage of total assets   14.7%   14.9%   14.3%   14.3%   19.1%
Regulatory capital as % of APR   16.2%   17.3%   22.1%   22.7%   26.3%
Asset Quality                         
Allowances over total loans   2.4%   2.3%   2.0%   2.1%   2.2%
Non-performing financing as a percentage of total financing   1.5%   1.5%   1.1%   1.4%   1.3%
Coverage ratio w/allowances   150.5%   155.1%   176.5%   155.9%   168.1%

 

(1) Net interest margin excluding difference in quote in foreign currency

(2) Net interest margin (excluding difference in quote in foreign currency) except income from government & private securities and guaranteed loans

 

ACCUMULATED ANNUALIZED RATIOS    
   2Q16   3Q16   4Q16   1Q17   2Q17 
Profitability & performance                    
Net interest margin (1)   18.8%   18.5%   18.2%   18.3%   17.8%
Net interest margin adjusted (2)   15.3%   15.2%   15.3%   17.5%   16.9%
Net fee income ratio   24.7%   25.2%   25.5%   26.4%   26.0%
Efficiency ratio   46.3%   47.0%   47.5%   47.0%   45.0%
Net fee income as a percentage of adm expenses   53.4%   53.6%   53.8%   56.2%   57.7%
Return on average assets   5.7%   5.4%   5.2%   4.6%   4.7%
Return on average equity   36.7%   35.2%   34.1%   30.5%   30.7%
Liquidity                         
Loans as a percentage of total deposits   79.9%   77.2%   80.2%   83.5%   87.1%
Liquid assets as a percentage of total deposits   41.0%   44.7%   47.6%   44.7%   53.2%
Capital                         
Total equity as a percentage of total assets   14.7%   14.9%   14.3%   14.3%   19.1%
Regulatory capital as % of APR   16.2%   17.3%   22.1%   22.7%   26.3%
Asset Quality                         
Allowances over total loans   2.4%   2.3%   2.0%   2.1%   2.2%
Non-performing financing as a percentage of total financing   1.5%   1.5%   1.1%   1.4%   1.3%
Coverage ratio w/allowances   150.5%   155.1%   176.5%   155.9%   168.1%

 

(1) Net interest margin excluding difference in quote in foreign currency

(2) Net interest margin (excluding difference in quote in foreign currency) except income from government & private securities and guaranteed loans

 

 16 

 

 

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: August 9, 2017

 

  MACRO BANK INC.    
       
  By: /s/ Jorge Scarinci  
  Name: Jorge Scarinci    
  Title: Finance manager    

 

  

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