-----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, MAGsPLiZs3qMfMm+vE43YCzbQKVY25yZPFVHOCtNQ/Q/RKMsyzS92KOCvYH68wFd 69Ut2r577J7zcpch2L5Ehw== 0001275287-06-004354.txt : 20060811 0001275287-06-004354.hdr.sgml : 20060811 20060811091255 ACCESSION NUMBER: 0001275287-06-004354 CONFORMED SUBMISSION TYPE: 6-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20060810 FILED AS OF DATE: 20060811 DATE AS OF CHANGE: 20060811 FILER: COMPANY DATA: COMPANY CONFORMED NAME: Macro Bansud 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: 061023037 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 6-K 1 mb6824.txt 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 OF THE SECURITIES EXCHANGE ACT OF 1934 August 10, 2006 ---------- Commission File Number: 333-130901 ---------- MACRO BANSUD 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 ================================================================================ For Immediate Release BANCO MACRO BANSUD ANNOUNCES RESULTS FOR THE SECOND QUARTER OF 2006 Buenos Aires, Argentina, August 10, 2006 - Banco Macro Bansud, S.A. (NYSE: BMA; Buenos Aires: BSUD) ("Banco Macro" or "BMA") announced today its results for the second quarter period ended June 30, 2006 ("2Q06"). All figures are in Argentine pesos (Ps.) and have been prepared in accordance with Argentine GAAP. HIGHLIGHTS - ---------- o 2Q06 net income totaled $99 million, climbing 62% compared to 2Q05 net income of $61 million and 36% compared to 1Q06 net income of $73 million. This profitability level keeps the Bank's 19.5% ROE as one of the most profitable banks in Argentina. o The Bank's high liquidity level (62% of liquid assets to deposits) and its strong solvency position ($1,466 million of excess capital) remain as one of the Bank's distinctive characteristics for the quarter. o Loans to the private sector continued to climb at high rates. "Core" credit to the private sector grew 18% for the quarter and 79% year over year. Consumer loans continued to be the most dynamic segment, with a 199% annual growth rate. o The Bank's net interest margin rose to 7.4% compared to the 6.3% posted in the 1Q06. o Banco Macro's asset quality remained on a favorable trend; the non-performing loan portfolio was 2.4% of the total portfolio at June 30, 2006, compared to 3.5% at 1Q06. Furthermore, the coverage ratio of provisions reached 154.2% in the quarter. o On August 4, 2006 Argentina's Central Bank approved the acquisition of Nuevo Banco Bisel S.A. by Banco Macro. 2Q06 Results Page 2 of 24 RESULTS - ------- Earnings per share in the 2Q06 reached $0.14, 40% higher than the $0.10 earned for the same period in 2005.
MACRO CONSOLIDATED ---------------------------------------------------- EARNINGS PER SHARE II 05 III 05 IV 05 I 06 II06 - ------------------------------ -------- -------- -------- -------- -------- Net income (M $) 61 65 75 73 99 Average shares outstanding (M) 609 609 609 616 684 Book value per share ($) 2.2 2.32 2.45 3.30 3.01 Earnings per share ($) 0.10 0.11 0.12 0.12 0.14
2Q06's net income was $99 million rising 62% compared to the $61 million earned for the same period in 2005, and 36% compared to the $73 million net income for 1Q06.
MACRO CONSOLIDATED INCOME STATEMENT ---------------------------------------------------- IN MILLION $ II 05 III 05 IV 05 I 06 II06 - ------------------------------ -------- -------- -------- -------- -------- Net financial income 75 122 142 135 175 Provision for loan losses -15 -23 -13 -9 -14 Net fee income 59 63 68 71 77 119 162 197 197 238 Administrative expense -107 -110 -128 -128 -145 12 52 69 69 93 Net other income 49 24 29 13 16 Earnings before income tax 61 76 98 82 109 Income tax -0 -11 -23 -9 -10 NET INCOME 61 65 75 73 99
In 2Q06, financial income of $261 million grew 69% or $107 million compared to last year's level of $154 million and was up 24%, or $50 million, compared to the $211 million reported in 1Q06. Interest earned from lending continued to be 50% of total financial income. Interest from loans rose by 27% in the quarter and by 81% year over year, consistent with the steady expansion of the Bank's private sector lending. (See section on financing to the private sector). 2Q06 Results Page 3 of 24 In addition, income from the LEBAC and NOBAC portfolio grew 7% compared to the previous quarter and represented 23% of the total financial income of the period. This growth is attributed to an increase of such instruments' yields over the last few months and the incorporation of Banco de Tucuman's bond portfolio. The "Other" account, within government securities, showed a substantial increase in the quarter due to the following reasons: 1) in 1Q06, those government securities accounted under Communique. "A" 3911 were marked to market, generating an $18 million loss in that quarter; and 2) $8 million of profit earned due to the sale of Puerto Madero Siete financial trust. Finally, income originated by CER (inflation) adjustments declined by 34% in the quarter and decreased substantially 63% year over year. This quarterly decline was due to a smaller balance of Guaranteed Loans adjusted by CER and the slowing of Argentina's consumer inflation rate during the period. 2Q06 Results Page 4 of 24
MACRO CONSOLIDATED FINANCIAL INCOME ------------------------------------------ IN MILLION $ II 05 III 05 IV 05 I 06 II06 - -------------------------------------------------- ------ ------ ------ ------ ------ Interest on cash and due from banks 2 2 2 2 2 Interest on loans to the financial sector 1 2 2 3 4 Interest on overdrafts 14 14 15 16 24 Interest on documents 7 8 10 10 10 Interest on mortgages 7 7 10 9 11 Interest on pledges 6 7 8 9 10 Interest on credit cards 4 5 5 5 7 Interest on other loans 29 30 36 45 57 Interest on other receivables from financial intermediation 4 4 4 4 3 Income from government & private securities (1) 6 43 64 50 77 Results of guaranteed loans 8 6 7 6 7 CER adjustment (2) 51 50 30 29 19 CVS adjustment 0 0 1 0 0 Other 15 16 24 23 30 Total financial income 154 194 218 211 261 (1) Income from government & private securities LEBAC / NOBAC 21 13 70 57 61 Other -15 30 -6 -7 16 TOTAL 6 43 64 50 77 (2) CER adjustment CER other bonds 23 13 7 2 0 Guaranteed loans 17 16 20 20 14 CER compensation bond 3 14 1 0 0 Loans to the private sector 6 4 2 6 0 Other 2 3 0 1 5 TOTAL 51 50 30 29 19
2Q06's financial expenses of $86 million were up 9% compared to 2Q05's level of $79 million, mainly related to higher volume of deposits and an increase in the financial system's interest rates. In addition, interest on deposits grew 33% compared to the previous quarter. This increase is mainly due to a 20% rise in deposits (50% of which is explained by the acquisition of Banco de Tucuman) and an average 15% increase in the Bank's time deposit interest rate, in line with the slightly increasing borrowing interest rates in the banking system as a whole. Finally, expenses originated by CER-adjusted deposits decreased 26% compared to the previous quarter due to a 16% decline in CER-adjusted deposits and the slowdown of Argentina's consumer inflation rate. On a yearly basis, expenses originated by CER-adjusted deposits dropped sharply by 56%. 2Q06 Results Page 5 of 24
MACRO CONSOLIDATED FINANCAL EXPENSES ------------------------------------------ IN MILLION $ II 05 III 05 IV 05 I 06 II06 - -------------------------------------------------- ------ ------ ------ ------ ------ Interest on checking accounts 1 1 1 1 2 Interest on savings accounts 1 1 1 2 1 Interest on time deposits 25 29 33 36 49 Interest on other liabilities from financial intermediation 4 3 3 4 3 Other Interest 3 3 4 3 3 CER adjustment (3) 32 26 24 19 14 Other 13 9 10 11 14 Total Financial Expenses 79 72 76 76 86 (3) CER adjustment Time deposits CER adjusted 17 15 17 10 7 Advance for Boden purchase 11 7 6 7 6 Other 4 4 1 2 1 TOTAL 32 26 24 19 14
In the quarter, net fee income of $77 million increased by 30% from last year's level of $59 million and climbed by 8% on a quarterly basis. If we had not included Banco de Tucuman in our analysis, net fee income would have grown by 24% year over year. As we can see in the following table, all segments experienced an increase in fee income with deposit accounts and credit and debit card fees experiencing the highest increase in fee income. 2Q06 Results Page 6 of 24
MACRO CONSOLIDATED NET FEE INCOME ------------------------------------------ IN MILLION $ II 05 III 05 IV 05 I 06 II06 - -------------------------------------------------- ------ ------ ------ ------ ------ Fee charges on deposit accounts 48 51 56 57 65 Debit and credit card income 2 14 3 7 10 Other fees related to foreign trade 3 3 3 3 3 Credit-related fees 5 5 6 6 7 Lease of safe-deposit boxes 1 1 2 2 2 Other 14 4 15 14 11 Total fee income 73 78 85 89 98 Total fee expenses 14 15 17 18 21 Net fee income 59 63 68 71 77
In 2Q06, Banco Macro's administrative expenses of $145 million grew by 13% compared to the previous quarter's level of $128 million. The incorporation of Banco de Tucuman represented a 6% or $8 million increase in administrative expenses, mainly in personnel expenses. Had we excluded Banco de Tucuman from our comparison, administrative expenses would have increased by only 7% On a yearly basis, the increase in administrative expenses can be traced to salary adjustments and the increase in the number of employees, as a result of the recent acquisitions of Banco Empresario de Tucuman and Banco de Tucuman, and to higher operating expenses due to the larger number of branches.
MACRO CONSOLIDATED ADMINISTRATIVE EXPENSES ------------------------------------------ IN MILLION $ II 05 III 05 IV 05 I 06 II06 - -------------------------------------------------- ------ ------ ------ ------ ------ Personnel expenses 60 63 75 79 82 Fees to directors & statutory auditors 9 2 2 2 7 Other profesional fees 6 7 9 8 10 Advertising & publicity 3 7 9 5 8 Taxes 0 1 1 2 2 Other operating expenses 26 26 28 29 31 Other 3 4 4 3 5 Total Administrative Expenses 107 110 128 128 145 Total Employees 4,852 4,851 5,054 5,051 5,570 Branches 245 245 252 253 279
In 2Q06, net other income totaled $16 million, attributed to $18 million in goodwill amortization. In addition, recovered loans and allowances reversals compensated "amparos" amortization and other provision charges. 2Q06 Results Page 7 of 24 FINANCIAL ASSETS - ---------------- PRIVATE SECTOR FINANCING The volume of "core" financing to the private sector continued to grow at attractive rates (18% quarter over quarter and 79% year over year), netting the effects related to the Bank's liquidity management policy (advances to corporate, which grew $462 million in the quarter) and adding the Bank's personal trust portfolio of $126 million. It is worth mentioning that the incorporation of Banco de Tucuman's portfolio accounted for 33% of Banco Macro's financing increase in the last three months. The expansion of the bank's lending portfolio was principally driven by consumer loans (which were up 42% in the quarter and 199% year over year) and by medium-term loans (included in the account "Others", which were up 15% and 72%, respectively), as it has been performing in the last quarters. Moreover, credit card loans continued showing high growth rates of 12% in the quarter and 88% on a yearly basis. Finally, loans with mortgage guarantees also evolved favorably (up 18% in the quarter and up 56% year over year).
MACRO CONSOLIDATED PRIVATE SECTOR LOAN PORTFOLIO ------------------------------------------------------------------ IN MILLION $ II 05 III 05 IV 05 I 06 II06 II06/ I06 II06/II05 - ----------------------------------------- ------ ------ ------ ------ ------ --------- --------- Overdrafts (total) 546 451 433 455 948 108% 74% Overdrafts 280 269 300 313 344 AAA (liquidity administration) 266 182 133 142 604 Documents 406 311 434 348 382 10% -6% Mortgages 223 245 298 295 347 18% 56% Pledges 184 196 230 245 256 4% 39% Consumer 279 368 477 587 834 42% 199% Credit Cards 163 178 241 274 306 12% 88% Others 578 578 779 869 996 15% 72% Interests, adjustments and other 72 54 56 64 73 14% 1% Provisions -174 -186 -248 -190 -178 -6% 2% Total loans 2,277 2,195 2,700 2,947 3,964 35% 74% Financial trusts 152 235 288 357 391 10% 157% Leasing 81 101 145 173 204 18% 152% Total credit to the private sector 2,510 2,531 3,133 3,477 4,559 31% 82% Total credit w/o liquidity administration 2,244 2,349 3,000 3,335 3,955 19% 76% Banco Macro personal trust 38 46 51 122 126 3% 231% FIN. w/o LIQ. ADM & w/ BM PERS TRUST 2,282 2,395 3,051 3,457 4,081 18% 79%
2Q06 Results Page 8 of 24 PUBLIC SECTOR ASSETS - -------------------- Banco Macro's public sector assets increased by 16%, or $471 million in the quarter, to $3,369 million basically explained by the incorporation of Banco de Tucuman securities portfolio. We would like to highlight that 50% of this increase related to an increase in LEBAC and NOBAC holdings. However, the Bank's public sector assets (net of LEBAC / NOBAC) remained at 13% of total assets, which is the same level reported in the previous period and well below 2Q05's level of 29%.
MACRO CONSOLIDATED PUBLIC SECTOR ASSETS --------------------------------------------------- IN MILLION $ II 05 III 05 IV 05 I 06 II06 VAL - ----------------------------------------------------- ------ ------ ------ ------ ------ ------ LEBAC / NOBAC B.C.R.A 1,540 2,382 2,240 1,643 1,880 MV Secured bonds 862 385 198 0 32 MV Compensation receivable bond 53 8 106 0 0 TV Other 123 300 161 308 465 MV Government securities 2,578 3,075 2,705 1,951 2,377 Guaranteed loans 641 601 642 629 615 A3911 Provincial loans 60 5 4 2 1 PV Government securities loans 97 55 57 92 56 MV Loans 798 661 703 723 672 Compensation to be received 586 147 0 0 8 TV Purchase of government bonds 282 248 246 198 287 MV Other receivables for financial intermediation 868 395 246 198 295 Boden purchased from clients (Swap II) 0 0 2 0 0 MV Boden to collect 27 26 16 26 25 MV Other receivables 27 26 18 26 25 TOTAL ASSETS 4,271 4,157 3,672 2,898 3,369 TOTAL LIABILITIES 1,202 986 888 920 928 Net exposure 3,069 3,171 2,784 1,978 2,441 TOTAL PUBLIC SECTOR ASSETS (net of LEBAC / NOBAC) 2,731 1,775 1,432 1,255 1,489 TOTAL PUBLIC SECTOR ASSETS (net of LEB / NOB) / T. A. 29% 19% 15% 13% 13% Net exposure (net of LEB/NOB) / TOTAL ASSETS 16% 9% 6% 3% 5%
FUNDING - ------- Banco Macro's deposit base grew by 20% in the last three months and 26% in the last year to $7.8 billion. The incorporation of Banco de Tucuman accounted for 50% of Banco Macro's deposit increase in the last quarter. 2Q06 Results Page 9 of 24 In 2Q06, deposits from the public sector jumped by 102% (Banco de Tucuman's public sector deposits accounted for 62% of this increase). On the other hand, deposits from the private sector rose by 11%, or $641 million, in the last quarter while Banco de Tucuman contributed with $260 million. In this period, savings accounts grew by 14%, time deposits were up 12% and checking accounts rose by 7%. On a yearly basis comparison, Banco Macro sight deposits climbed by 37% while time deposits only grew by 16%. As of June 2006, time deposits represented 47% of total deposits compared to a 51% in 2Q05. Finally, institutional deposits rose 52% QoQ to $776 million.
MACRO CONSOLIDATED DEPOSITS ------------------------------------------------------------------------- IN MILLION $ II 05 III 05 IV 05 I 06 II 06 II 06 / I 06 II 06 / II 05 - ----------------------------------------- ------ ------ ------ ------ ------ ------------ ------------- Public sector 956 929 823 659 1,328 102% 39% Financial sector 6 5 5 6 6 0% 0% Private sector 5,218 5,487 5,737 5,781 6,422 11% 23% Checking accounts 894 1,005 1,036 1,150 1,235 7% 38% Savings accounts 879 934 1,101 1,040 1,189 14% 35% Time deposits 3,131 3,185 3,222 3,257 3,632 12% 16% Other 314 363 378 334 366 10% 17% TOTAL 6,180 6,421 6,565 6,446 7,756 20% 26%
LIQUID ASSETS - ------------- The Bank's liquid assets increased $571 million in the quarter chiefly due to the incorporation of Banco de Tucuman's liquid assets of $456 million. The liquid assets to deposits ratio of 62% was in line with those reported in the previous four quarters. 2Q06 Results Page 10 of 24
MACRO CONSOLIDATED LIQUID ASSETS -------------------------------------------------------- In MILLION $ II 05 III 05 IV 05 I 06 II06 - -------------------------------------- -------- -------- -------- -------- -------- Cash 1,144 1,365 1,189 2,127 1,783 Guarantees for compensating chambers 107 86 95 97 123 Loans to AAA companies 266 182 133 142 604 Call 159 97 81 103 115 Repos 205 196 61 90 218 LEBAC / NOBAC 1,694 2,389 2,463 1,688 1,975 TOTAL 3,575 4,315 4,022 4,247 4,818 Liquid assets to total deposits 58% 67% 61% 66% 62%
SOLVENCY - --------- As in previous periods, the Bank continued showing a high level of solvency, with an excess capital of $1,466 million (268% over $546 million capital requirement). In the last quarter, there was a 28% increase in the credit risk capital requirement, mainly related to the Bank's loan portfolio growth. MACRO CONSOLIDATED MIN.CAP.REQUIREMENT ------------------------------ IN MILLION $ IV 05 I 06 II 06 - -------------------------- -------- -------- -------- Credit requirements 330 379 487 Market risk requirements 21 21 51 Interest rate requirements 15 46 8 Integrated capital 1,492 1,946 2,012 Excess capital 1,126 1,500 1,466 ASSET QUALITY - ------------- Banco Macro continued posting a substantial improvement in its asset quality ratios, being one of the Argentine banks with the best asset quality. Non-performing financing to the total financing ratio improved to 2% in 2Q06 from the 3% posted three months ago. This positive performance had a combined effect. On one side, the incorporation of Banco de Tucuman's non-performing ratio of 5% worsened this ratio. However, on the other side, part of the 100%-provisioned-loans was accounted in off-balance accounts. Finally, the coverage ratio was 153% in the quarter. 2Q06 Results Page 11 of 24
MACRO CONSOLIDATED ASSET QUALITY -------------------------------------------------------- IN MILLION $ II 05 III 05 IV 05 I 06 II06 - -------------------------------------- -------- -------- -------- -------- -------- Commercial portfolio 2,513 2,139 2,503 2,700 3,422 Irregular 92 73 133 84 62 Consumer portfolio 1,107 1,258 1,574 1,764 2,138 Irregular 55 52 75 62 67 Total portfolio 3,620 3,397 4,077 4,464 5,560 Irregular 147 125 208 146 129 Irregular / total portfolio 4% 4% 5% 3% 2% Total provisions 190 200 266 209 198 Coverage ratio 129% 160% 128% 143% 153%
2Q06 Results Page 12 of 24 CER EXPOSURE AND FOREIGN CURRENCY POSITION - ------------------------------------------ CER EXPOSURE In MILLION $ II 06 - ---------------------------------------------- -------- CER adjustable ASSETS Government securities 210 Guaranteed loans 617 Loans to the private sector 99 Other loans 75 Loans 791 Leasing 1 Other loans 10 Total CER adjustable assets 1,012 CER adjustable LIABILITIES Deposits 262 Other liabilities for financial intermediation 269 Subordinated debt 7 Total CER adjustable liabilities 538 NET ASSET CER EXPOSURE 474
MACRO CONSOLIDATED FX CURRENCY POSITION -------------------------------------------------------- IN MILLION $ II 05 III 05 IV 05 I 06 II06 - -------------------------------------- -------- -------- -------- -------- -------- Cash 579 579 692 818 629 Government Securities 109 243 232 211 492 Loans 455 295 542 583 658 Other receivables from financial intermediation 712 353 355 337 545 Other Loans 15 13 12 11 12 Other assets 0 0 0 0 6 TOTAL ASSETS 1,870 1,483 1,833 1,960 2,342 Deposits 1,055 0,868 1,093 1,333 1,399 Other liabilities from financial intermediation 587 374 393 441 677 Other liabilities 1 1 3 5 3 Provisions 0 0 0 6 6 TOTAL LIABILITIES 1,643 1,243 1,489 1,785 2,085 NET FX POSITION 227 240 344 175 257
2Q06 Results Page 13 of 24 RELEVANT AND RECENT EVENTS - -------------------------- - - On August 4, Argentina's Central Bank notified the approval of the acquisition of Nuevo Banco Bisel's capital stock by Banco Macro S.A. - - Nuevo Banco Bisel is an institution with a strong presence in the central region of Argentina (particularly in the Province of Santa Fe), where it has 158 branch offices. At May 2006 (latest available public information), its assets totaled $1,966 million, loans to the private sector were $674 million and total deposits amounted to $1,360 million. - - On August 1, the Bank's Board of Directors called for a General Shareholders' Meeting to take place on September 1, 2006 in order to discuss the approval of the issuance of a Global Program of Corporate Bonds for up to USD400 million (four hundred million US dollars). - - On May 5, 2006, the acquisition of Banco de Tucuman S.A. was completed, and Banco Macro took control of 75% of Banco de Tucuman's capital stock. - - In May 2006, Moodys improved Banco Macro Bansud S.A.'s and Nuevo Banco Suquia S.A's financial strength rating. QUARTERLY CONFERENCE CALL - ------------------------- A conference call to discuss this press release will be held on August 14, 2006 at 1:00p.m. Buenos Aires time (12:00 p.m., New York time), with the presence of Jorge Pablo Brito (Director), Guillermo Goldberg (Commercial Manager) and Jorge Scarinci, Chief Investor Relations Officer. Dial in information: (800) 262-1292 (U.S. Participants) (719) 457-2680 (From outside the U.S.) Conference ID: BANCO MACRO 2Q06 Results Page 14 of 24 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, financial services and related; 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 prospectus 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 Comision Nacional de Valores (www.cnv.gov.ar), Securities and Exchange Commission (www.sec.gov), Bolsa de Comercio de Buenos Aires (www.bolsar.com.ar) and 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. 2Q06 Results Page 15 of 24 INVESTOR RELATIONS CONTACTS: - ---------------------------- In Buenos Aires: Jorge Scarinci, CFA Chief Investor Relations Officer Tel: +5411-5222-6730 E-mail: investorelations@macrobansud.com.ar Visit the Bank's website at http://www.macrobansud.com.ar In New York: Melanie Carpenter or Peter Majeski i-advize Corporate Communications, Inc. Tel: +212-406-3690 E-mail: macro@i-advize.com 2Q06 Results Page 16 of 24 EXHIBITS - --------
MACRO CONSOLIDATED BALANCE SHEET -------------------------------------------------------- IN MILLION $ II 05 III 05 IV 05 I 06 II06 - ------------------------------------------- -------- -------- -------- -------- -------- ASSETS 9,429 9,226 9,488 9,828 11,496 Cash 1,144 1,365 1,189 2,127 1,783 Government and private securities 2,810 3,158 2,992 2,124 2,685 Loans 3,138 2,899 3,427 3,680 4,696 To the non-financial government sector 702 607 645 631 617 To the financial sector 159 97 81 103 115 To the non-financial private sector 2,277 2,195 2,701 2,946 3,964 -Overdrafts 546 451 433 455 948 -Discounted documents 406 311 434 348 382 -Mortgages 223 245 298 295 347 -Pledges 184 196 230 245 256 -Consumer 279 368 477 587 834 -Credit cards 163 178 241 274 306 -Other 578 578 779 869 996 - Less: ints. adj. and fx dif. 72 54 57 63 73 - Provisions -174 -186 -248 -190 -178 Other receivables from financial intermediation 1,668 1,104 1,080 1,066 1,428 Investments in other companies 13 13 14 14 14 Other receivables 144 160 172 175 157 Other assets 512 527 614 642 733 LIABILITIES 8,080 7,812 7,998 7,796 9,434 Deposits 6,180 6,421 6,565 6,446 7,756 From the non-financial government sector 956 929 823 659 1,328 From the financial sector 6 5 5 6 6 From the non-financial private sector 5,218 5,487 5,737 5,781 6,422 -Checking accounts 894 1,005 1,036 1,150 1,235 -Savings accounts 879 934 1,101 1,040 1,189 -Time deposits 3,131 3,185 3,222 3,257 3,632 -Other 314 363 378 334 366 Other liabilities from financial intermediation 1,625 1,135 1,143 1,064 1,418 Subordinated corporate bonds 18 16 12 12 13 Other liabilities 257 240 278 274 247 STOCKHOLDERS' EQUITY 1,349 1,414 1,490 2,032 2,062 LIABILITIES + STOCKHOLDERS' EQUITY 9,429 9,226 9,488 9,828 11,496
2Q06 Results Page 17 of 24
MACRO CONSOLIDATED W/O SUQUIA BALANCE SHEET -------------------------------------------------------- IN MILLION $ II - 05 III - 05 IV - 05 I - 06 II - 06 - ------------------------------------------- -------- -------- -------- -------- -------- ASSETS 7,178 7,006 7,116 7,317 8,794 Cash 859 969 784 1,503 1,316 Government and private securities 2,098 2,218 1,886 1,169 1,712 Loans 2,093 1,818 2,275 2,470 3,168 To the non-financial government sector 419 370 402 382 390 To the financial sector 104 87 82 77 67 To the non-financial private sector 1,570 1,361 1,791 2,011 2,711 -Overdrafts 417 248 279 334 685 -Discounted documents 294 193 312 220 241 -Mortgages 86 101 140 129 178 -Pledges 50 58 68 73 76 -Consumer 225 294 386 480 705 -Credit cards 113 123 163 183 208 -Other 449 442 631 713 720 - Less: ints. adj. and fx dif. 30 19 20 27 33 - Provisions -94 -117 -208 -148 -135 Other receivables from financial intermediation 1,197 1,008 1,042 990 1,311 Investments in other companies 367 414 487 536 588 Other receivables 125 132 141 144 116 Other assets 439 447 501 505 583 LIABILITIES 5,829 5,592 5,626 5,285 6,732 Deposits 4,434 4,419 4,502 4,292 5,460 From the non-financial government sector 953 926 821 657 1,325 From the financial sector 4 4 4 4 5 From the non-financial private sector 3,477 3,489 3,677 3,631 4,130 -Checking accounts 435 496 514 601 649 -Savings accounts 527 558 691 623 739 -Time deposits 2,319 2,258 2,274 2,237 2,532 -Other 196 177 198 170 210 Other liabilities from financial intermediation 1,166 958 891 768 1,070 Subordinated corporate bonds 18 16 12 12 13 Other liabilities 211 199 221 213 189 STOCKHOLDERS' EQUITY 1,349 1,414 1,490 2,032 2,062 LIABILITIES + STOCKHOLDERS' EQUITY 7,178 7,006 7,116 7,317 8,794
2Q06 Results Page 18 of 24
SUQUIA BALANCE SHEET -------------------------------------------------------- IN MILLION $ II 05 III 05 IV 05 I 06 II06 - ------------------------------------------- -------- -------- -------- -------- -------- ASSETS 2,626 2,796 2,855 3,034 3,277 Cash 286 397 406 625 468 Government and private securities 712 940 1,105 955 974 Loans 1,045 1,078 1,154 1,210 1,526 To the non-financial government sector 283 236 243 249 227 To the financial sector 55 10 0 26 48 To the non-financial private sector 707 832 911 935 1,251 -Overdrafts 129 203 153 121 263 -Discounted documents 112 118 122 128 141 -Mortgages 137 144 158 165 169 -Pledges 134 138 163 172 180 -Consumer 55 74 91 107 129 -Credit cards 50 55 79 91 98 -Other 129 136 149 156 276 - Less: ints. adj. and fx dif. 43 34 36 37 38 - Provisions -82 -70 -40 -42 -43 Other receivables from financial intermediation 486 267 40 77 117 Investments in other companies 0 0 0 0 0 Other receivables 24 33 37 31 41 Other assets 73 81 113 136 151 LIABILITIES 2,272 2,397 2,383 2,515 2,703 Deposits 1,753 2,009 2,070 2,156 2,296 From the non-financial government sector 3 3 1 2 3 From the financial sector 3 3 3 3 3 From the non-financial private sector 1,747 2,003 2,066 2,151 2,290 -Checking accounts 459 509 522 549 586 -Savings accounts 352 376 410 417 449 -Time deposits 812 927 948 1,020 1,099 -Other 124 191 186 165 156 Other liabilities from financial intermediation 475 348 256 297 349 Subordinated corporate bonds 0 0 0 0 0 Other liabilities 44 40 57 62 58 STOCKHOLDERS' EQUITY 354 399 472 519 574 LIABILITIES + STOCKHOLDERS' EQUITY 2,626 2,796 2,855 3,034 3,277
2Q06 Results Page 19 of 24 INCOME STATEMENT - ----------------
MACRO CONSOLIDATED INCOME STATEMENT -------------------------------------------------------- IN MILLION $ II 05 III 05 IV 05 I 06 II 06 - ------------------------------------------- -------- -------- -------- -------- -------- Financial income 154 194 218 211 261 Interest on cash, loans, over., doc.& ORFI 74 79 91 103 128 Net income from gov and priv sec & from guar loans 14 50 71 57 84 CER adjustments & other 66 65 56 51 49 Financial expense -79 -72 -76 -76 -86 Interest on dep & OLFI -34 -37 -43 -46 -58 CER adjustment & other -32 -26 -24 -19 -14 Other -13 -9 -9 -11 -14 Net financial income 75 122 142 135 175 Provision for loan losses -15 -23 -13 -9 -14 Fee income 73 78 85 89 98 Fee expense -14 -15 -17 -18 -21 Net fee income 59 63 68 71 77 Administrative expenses -107 -110 -128 -128 -145 Net other income 49 24 29 13 16 Earnings before income tax 61 76 98 82 109 Income tax -0 -11 -23 -9 -10 Net income 61 65 75 73 99
2Q06 Results Page 20 of 24
MACRO CONSOLIDATED W/O SUQUIA INCOME STATEMENT -------------------------------------------------------- IN MILLION $ II05 III05 IV05 I06 II06 - ------------------------------------------- -------- -------- -------- -------- -------- Financial income 110 116 142 123 175 Interest on cash, loans, over., doc.& ORFI 47 50 56 67 88 Net income from gov and priv sec & from guar loans 23 35 53 22 55 CER adjustments & other 40 31 33 34 32 Financial expense -58 -51 -54 -52 -61 Interest on dep & OLFI -24 -25 -30 -32 -42 CER adjustment & other -22 -18 -16 -10 -7 Other -12 -8 -8 -10 -12 Net financial income 52 65 88 71 114 Provision for loan losses -9 -22 -22 -4 -12 Fee income 46 48 54 57 65 Fee expense -8 -9 -9 -10 -12 Net fee income 38 39 45 47 53 Administrative expenses -76 -74 -90 -87 -106 Net other income 56 68 77 55 60 Earnings before income tax 61 76 98 82 109 Income tax -0 -11 -23 -9 -10 Net income 61 65 75 73 99
2Q06 Results Page 21 of 24
SUQUIA INCOME STATEMENT -------------------------------------------------------- IN MILLION $ II05 III 05 IV 05 I06 II06 - ------------------------------------------- -------- -------- -------- -------- -------- Financial income 48 74 77 89 86 Interest on cash, loans, over., doc.& ORFI 27 29 35 36 40 Net income from gov and priv sec & from guar loans -4 10 18 35 29 CER adjustments & other 25 35 24 18 17 Financial expense -27 -16 -22 -25 -25 Interest on dep & OLFI -15 -6 -12 -14 -16 CER adjustment & other -10 -8 -8 -9 -7 Other -2 -2 -2 -2 -2 Net financial income 21 58 55 64 61 Provision for loan losses -6 -1 9 -4 -2 Fee income 28 30 32 32 33 Fee expense -6 -7 -9 -9 -9 Net fee income 22 23 23 23 24 Administrative expenses -31 -36 -38 -41 -40 Net other income 20 2 25 7 8 Earnings before income tax 26 46 74 49 51 Income tax 0 0 0 0 0 Net income 26 46 74 49 51
2Q06 Results Page 22 of 24 RELEVANT RATIOS - ---------------
MACRO CONSOLIDATED -------------------------------------------------------- RATIOS II 05 III 05 IV 05 I 06 II 06 - ------------------------------------------- -------- -------- -------- -------- -------- Profitability & performance Net interest margin 4.6% 5.8% 6.2% 6.3% 7.4% Fee income ratio 38.2% 33.9% 32.5% 34.4% 30.5% Efficiency ratio 69.5% 59.6% 60.7% 62.5% 57.6% Fee income as a percentage of adm expenses 54.9% 56.8% 53.5% 55.0% 53.0% Return on average assets 2.6% 2.7% 2.8% 3.1% 3.2% Return on average equity 19.3% 19.3% 19.7% 19.4% 19.5% Liquidity Loans as a percentage of total deposits 53.6% 48.0% 56.0% 60.0% 62.8% Liquid assets as a percentage of total deposits 57.8% 67.2% 61.3% 65.9% 62.1% Capital Total equity as a percentage of total assets 14.3% 15.3% 15.7% 20.7% 17.9% Regulatory capital as a percentage of risk weighted assets 14.1% 24.8% 31.0% 38.8% 31.6% Asset Quality Provision for loan losses over total loans 5.2% 6.0% 6.7% 4.9% 3.7% Non performing loans as a percentage of total loans 3.9% 3.6% 5.3% 3.5% 2.4% Allowances as a percentage of non performing loans 133.3% 166.0% 126.2% 141.0% 154.2% Amparos as a percentage of average equity 3.5% 3.1% 2.9% 2.0% 2.5%
2Q06 Results Page 23 of 24 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 10, 2006 MACRO BANSUD BANK INC. By: /s/ Luis Cerolini -------------------- Name: Luis Cerolini Title: Attorney-in-fact 2Q06 Results Page 24 of 24 -----END PRIVACY-ENHANCED MESSAGE-----