BMA Banco Macro SA

 

 

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

 

February 23, 2023

 

 

Commission File Number: 001-32827

 

 

MACRO BANK INC.

(Translation of registrant’s name into English)

 

 

Avenida Eduardo Madero 1182

Ciudad Autónoma de Buenos Aires C1106 ACY

Tel: 54 11 5222 6500

 

(Address of registrant’s principal executive offices)

 

 

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

 

Form 20-F

x

Form 40-F

¨

 

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

 

Yes

¨

No

x

 

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

 

Yes

¨

No

x

 

 

 

4Q22 Earnings Release

 

Banco Macro Announces Results for the Fourth Quarter of 2022

 

Buenos Aires, Argentina, February 23, 2023 – Banco Macro S.A. (NYSE: BMA; BYMA: BMA) (“Banco Macro” or “BMA” or the “Bank”) announced today its results for the fourth quarter ended December 31, 2022 (“4Q23”). All figures are in Argentine pesos (Ps.) and have been restated in terms of the measuring unit current at the end of the reporting period. As of 1Q20, the Bank began reporting results applying Hyperinflation Accounting, in accordance with IFRS IAS 29 as established by the Central Bank. For ease of comparison, figures of previous quarters of 2021 and 2022 have been restated applying IAS 29 to reflect the accumulated effect of the inflation adjustment for each period through December 31, 2022.

 

Summary

 

• The Bank’s net income totaled Ps.16.6 billion in 4Q22. This result was 59% higher than the Ps.10.4 billion posted in 3Q22 and 19% lower than the Ps.20.5 billion posted in 4Q21. Net Income for FY2022 totaled Ps.43 billion, 19% lower than the Ps.52.8 posted in FY2021. In 4Q22, the annualized return on average equity (“ROAE”) and the annualized return on average assets (“ROAA”) were 16.9% and 3.3%, respectively.

 

•  In 4Q22 Operating Income (after G&A and personnel expenses) totaled Ps.78.2 billion, 79% or Ps.34.6 billion higher than in the same period of last year.

 

• In 4Q22, Banco Macro’s financing to the private sector increased Ps.2 billion quarter over quarter (“QoQ”) totaling Ps.596.4 billion and decreased 12% or Ps.83.4 billion year over year (“YoY”). In FY2022 peso financing decreased 14% while USD financing decreased 30%.

 

• In 4Q22, Banco Macro’s total deposits decreased 2% or Ps.23.5 billion QoQ and increased 13% or Ps.148.4 billion YoY, totaling Ps.1.3 trillion and representing 82% of the Bank’s total liabilities. Private sector deposits increased 2% or Ps.24.5 billion QoQ. In FY2022, private sector deposits stand out with a 14% increase (within private sector deposits time deposits grew 28% compared to FY2021)

 

• Banco Macro continued showing a strong solvency ratio, with an excess capital of Ps.410.3 billion, 39.9% regulatory capital ratio – Basel III and 36.6% Tier 1 Ratio. In addition, the Bank’s liquid assets remained at an adequate level, reaching 95% of its total deposits in 4Q22.

 

• In 4Q22, the Bank’s non-performing to total financing ratio was 1.25% and the coverage ratio remained stable at 151.69%.

 

• As of 4Q22, through its 467 branches and 7.781 employees Banco Macro serves 4.6 million retail customers (1.6 million digital customers) across 23 of the 24 Provinces in Argentina and over 111,700 corporate customers.

 

4Q22 Earnings Release Conference Call		IR Contacts in Buenos Aires:
Thursday, February 24, 2022		Jorge Scarinci
Time: 11:00 a.m. Eastern Time | 1:00 p.m. Buenos Aires Time		Chief Financial Officer
To participate, please dial:
Argentina Toll Free:		Nicolás A. Torres
(011) 3984 5677		Investor Relations
Participants Dial In (Toll Free):
+1 (844) 450 3847	Webcast Replay: click here	Phone: (54 11) 5222 6682
Participants International Dial In:		E-mail: investorelations@macro.com.ar
+1 (412) 317 6370	Available from 02/24/2023 through 03/10/2023
Conference ID: Banco Macro		Visit our website at:
Webcast: click here		www.macro.com.ar/relaciones-inversores

 

 

4Q22 Earnings Release

 

Disclaimer

 

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

 

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

 

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

 

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

 

 

4Q22 Earnings Release

 

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

 

Results

 

Earnings per outstanding share were Ps.26 in 4Q22, 59% higher than in 3Q22 and 19% lower than the result posted a year ago.

 

In FY2022, earnings per outstanding share were Ps.67.31, 19% lower than in FY2021.

 

EARNINGS PER SHARE		MACRO Consolidated																				Change
In MILLION $ (Measuring Unit Current at EOP)		4Q21				3Q22				4Q22				FY2021				FY2022				QoQ				YoY
Net income -Parent Company- (M $)			20,519				10,417				16,614				52,834				43,046				59	%			-19	%
Average # of shares outstanding (M)			639				639				639				639				639				0	%			0	%
Average #of treasury stocks (shares repurchased) (M)			-				-				-				0				0				-				-
Book value per avg. Outstanding share ($)			727				780				802				727				802				3	%			10	%
Shares Outstanding (M)			639				639				639				639				639				0	%			0	%
Earnings per avg.  outstanding share ($)			32.09				16.30				26.00				82.63				67.31				59	%			-19	%
EOP FX (Pesos per USD)			102.7500				147.3150				177.1283												20	%			72	%
Book value per avg. issued ADS (USD)			70.75				52.95				45.28												-14	%			-36	%
Earnings per avg. outstanding ADS (USD)			3.12				1.11				1.47				8.04				3.80				33	%			-53	%

 

Banco Macro’s 4Q22 net income of Ps.16.6 billion was 59% or Ps.6.2 billion higher than the previous quarter and 19% or Ps.3.9 billion lower YoY. This result represented an accumulated ROAE and ROAA of 9.7% and 2.3% respectively. Net comprehensive income was Ps.14.1 billion, 10% higher than the result posted in 3Q21 and 32% lower than the one registered a year ago.

 

In FY2022 net income for the period totaled Ps.43 billion, 19% lower than the Ps.52.8 billion posted in FY2021. Total comprehensive income totaled Ps.37.5 billion, 32% lower than a year ago.

 

Net operating income (before G&A and personnel expenses) was Ps.131.3 billion in 4Q22, decreasing 8% or Ps.11.3 billion compared to 3Q22 due to lower income from financial assets at fair value through profit or loss. On a yearly basis, Net Operating Income (before G&A and personnel expenses) increased 36% or Ps.34.4 billion.

 

In FY2022 Net operating income (before G&A and personnel expenses) totaled Ps.498.2 billion, 31% higher than the previous year.

 

In 4Q22, Provision for loan losses totaled Ps.2.5 billion, 51% or Ps.861 million higher than in 4Q21. On a yearly basis provision for loan losses decreased 34% or Ps.1.3 billion.

 

In FY2022 Provision for loan losses increased 37% compared to FY2021.

 

Operating income (after G&A and personnel expenses) was Ps.78.2 billion in 4Q22, 11% or Ps.9.9 billion lower than in 3Q22 but 79% or Ps.34.6 billion higher than a year ago.

 

In FY2022 Operating income totaled Ps.291.2 billion, 60% higher than the previous year.

 

It is important to emphasize that this result was obtained with a leverage of only 4.1x assets to equity ratio.

 

 

4Q22 Earnings Release

 

INCOME STATEMENT		MACRO Consolidated																				Change
In MILLION $ (Measuring Unit Current at EOP)		4Q21				3Q22				4Q22				FY2021				FY2022				QoQ				YoY
Net Interest Income			69,579				74,467				83,602				255,255				305,325				12	%			20	%
Net fee income			17,064				16,705				17,066				65,164				67,989				2	%			0	%
Net Interest Income + Net Fee Income			86,643				91,172				100,668				320,419				373,314				10	%			16	%
Net Income from financial instruments at fair value through P&L			6,891				29,946				-3,366				38,577				47,847				-111	%			-149	%
Income from assets at amortized cost			177				0				170				475				170				-				-4	%
Differences in quoted prices of gold and foreign currency			3,116				18,802				30,597				9,053				62,274				63	%			882	%
Other operating income			3,874				4,394				5,759				15,260				21,177				31	%			49	%
Provision for loan losses			3,824				1,672				2,533				4,783				6,558				51	%			-34	%
Net Operating Income			96,877				142,642				131,295				379,001				498,224				-8	%			36	%
Employee benefits			18,946				20,709				18,790				76,907				77,638				-9	%			-1	%
Administrative expenses			11,486				9,730				10,406				39,138				39,156				7	%			-9	%
Depreciation and impairment of assets			3,607				3,855				3,936				13,880				15,249				2	%			9	%
Other operating expenses			19,247				20,265				19,981				66,691				74,994				-1	%			4	%
Operating Income			43,591				88,083				78,182				182,385				291,187				-11	%			79	%
Result from associates & joint ventures			69				-113				117				170				-114				-				-
Result from net monetary postion			-29,565				-68,423				-56,970				-126,482				-228,573				-				-
Result before taxes from continuing operations			14,095				19,547				21,329				56,073				62,500				9	%			51	%
Income tax			-6,424				9,130				4,715				3,239				19,454				-				-
Net income from continuing operations			20,519				10,417				16,614				52,834				43,046				59	%			-19	%
Net Income of the period			20,519				10,417				16,614				52,834				43,046				59	%			-19	%
Net income of the period attributable to parent company			20,518				10,396				16,604				52,833				43,039				60	%			-19	%
Net income of the period attributable to minority interest			1				21				10				1				7				-52	%			900	%
Other Comprehensive Income			134				2,440				-2,497				2,286				-5,559				-				-
Foreign currency translation differences in financial statements conversion			-376				-208				144				-1,493				-719				-				-
Profits or losses from financial assets measured at fair value through other comprehensive income (FVOCI) (IFRS 9(4.1.2)(a)			510				2,648				-2,641				3,779				-4,840				.				-
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD			20,653				12,857				14,117				55,120				37,487				10	%			-32	%
Total Comprehensive Income attributable to parent Company			20,652				12,836				14,107				55,119				37,480				10	%			-32	%
Total Comprehensive Income attributable to non-controlling interests			1				21				10				1				7				-52	%			900	%

 

The Bank’s 4Q22 net interest income totaled Ps.83.6 billion, 12% or Ps.9.1 billion higher than in 3Q22 and 20% or Ps.14 billion higher YoY.

 

In FY2022, net interest income was 20% higher than in FY2021 as a result of different regulations adopted that set caps on lending rates and floors on deposit rates. Interest income increased 39% while interest expense increased 67%.

 

In 4Q22 interest income totaled Ps.198.6 billion,23% or Ps.37.8 billion higher than in 3Q22 and 79% or Ps.87.8 billion higher than in 4Q21.

 

Income from interest on loans and other financing totaled Ps.69.6 billion, 7% or Ps.4.5 billion higher compared with the previous quarter mainly due a 570 basis points increase in the average lending rate. On a yearly basis Income from interest on loans increased 21% or Ps.12 billion.

 

In FY2022 interest on loans totaled Ps.251 billion and increased 12% compared to FY2021.

 

In 4Q22 income from government and private securities increased 34% or Ps.30.7 billion QoQ (due to higher income from Government securities) and increased 144% or Ps.71.9 billion compared with the same period of last year. This result is explained 20% by income from government and private securities through other comprehensive income (Leliqs and Other government securities) and the remaining 80% is explained by income from government and private securities in pesos at amortized cost.

 

 

4Q22 Earnings Release

 

In FY2022, income from government and private securities increased 75% compared with FY2021.

 

In 4Q22, income from Repos totaled Ps.7 billion, 52% or Ps.2.4 billion higher than the previous quarter and 112% or Ps.3.7 higher than a year ago.

 

In 4Q22 FX income totaled Ps.31.2 billion, 63% or Ps.11.8 million higher than the previous quarter and Ps.27.5 billion higher than a year ago. FX income gain was due to the 20% argentine peso depreciation against the US dollar, the Bank’s long dollar position during the quarter and FX trading results.

 

In FY2022, FX income totaled a Ps.62.3 billion gain, 588% higher than FY2021.

 

FX INCOME		MACRO Consolidated												Change
In MILLION $ (Measuring Unit Current at EOP)		4Q21				3Q22				4Q22				QoQ				YoY
(1) Differences in quoted prices of gold and foreign currency			3,116				18,802				30,597				63	%			882	%
Translation of FX assets and liabilities to Pesos			2,803				18,414				30,425				65	%			985	%
Income from foreign currency exchange			313				389				172				-56	%			-45	%
(2) Net Income from financial assets and liabilities at fair value through P&L			-				123				619				402	%			-
Income from investment in derivative financing instruments			-				123				619				402	%			-
(1) +(2) Total Result from Differences in quoted prices of gold and foreign currency			3,116				18,926				31,216				65	%			902	%

 

INTEREST INCOME		MACRO Consolidated																				Change
In MILLION $ (Measuring Unit Current at EOP)		4Q21				3Q22				4Q22				FY2021				FY2022				QoQ				YoY
Interest on Cash and due from Banks			6				114				259				26				400				127	%			4217	%
Interest from government securities			49,829				91,109				121,731				198,393				347,584				34	%			144	%
Interest from private securities			75				39				80				590				193				105	%			7	%
Interest on loans and other financing
To the financial sector			270				97				172				1,316				536				77	%			-36	%
To the public non financial sector			606				350				333				3,538				1,515				-5	%			-45	%
Interest on overdrafts			4,000				7,673				7,967				15,724				25,400				4	%			99	%
Interest on documents			5,838				7,238				7,915				18,258				25,584				9	%			36	%
Interest on mortgages loans			7,417				9,974				9,744				29,770				37,616				-2	%			31	%
Interest on pledged loans			893				708				614				2,071				2,977				-13	%			-31	%
Interest on personal loans			23,702				21,792				21,749				93,772				89,374				0	%			-8	%
Interest on credit cards loans			7,970				10,158				12,870				28,693				40,706				27	%			61	%
Interest on financial leases			72				88				114				164				345				30	%			58	%
Interest on other loans			6,845				6,960				8,102				30,185				26,951				16	%			18	%
Interest on Repos			0
From the BCRA			3,272				4,494				6,651				16,525				12,636				48	%			103	%
Other financial institutions			16				85				329				102				648				287	%			1956	%
Total Interest income			110,811				160,879				198,630				439,127				612,465				23	%			79	%
Income from Interest on loans			57,613				65,038				69,580				223,491				251,004				7	%			21	%

 

The Bank’s 4Q22 interest expense totaled Ps.115 billion, increasing 33% or Ps.28.6 billion compared to the previous quarter and 179% (Ps.73.8 billion) compared to 4Q21.

 

In 4Q22, interest on deposits represented 98% of the Bank’s total interest expense, increasing 34% or Ps.28.5 billion QoQ, due to a 10% increase in the average volume of deposits from the private sector, while the average rate paid on deposits increased 860 basis points. On a yearly basis, interest on deposits increased 187% or Ps.73.8 billion.

 

In FY2022, interest expense increased 67% compared with FY2021.

 

 

4Q22 Earnings Release

 

INTEREST EXPENSE		MACRO Consolidated																				Change
In MILLION $ (Measuring Unit Current at EOP)		4Q21				3Q22				4Q22				FY2021				FY2022				QoQ				YoY
Deposits
Interest on checking accounts			277				3,940				8,922				2,564				15,478				126	%			3121	%
Interest on saving accounts			593				1,062				1,125				2,409				3,808				6	%			90	%
Interest on time deposits			38,603				79,799				103,244				169,974				280,599				29	%			167	%
Interest on other financing from BCRA and financial inst.			40				140				188				305				506				34	%			370	%
Repos
Other financial institutions			117				103				52				574				976				-50	%			-56	%
Interest on corporate bonds			216				13				14				1,679				296				8	%			-94	%
Interest on subordinated bonds			1,378				1,125				1,130				6,321				4,628				0	%			-18	%
Interest on other financial liabilities			8				230				353				46				849				53	%			4313	%
Total financial expense			41,232				86,412				115,028				183,872				307,140				33	%			179	%
Expenses from interest on deposits			39,473				84,801				113,291				174,947				299,885				34	%			187	%

 

In 4Q22, the Bank’s net interest margin (including FX) was 27.1%, higher than the 25.2% posted in 3Q22 and the 19.1% posted in 4Q21.

 

In 4Q22, Net Interest Margin (excluding FX) was 22.5%, higher than the 22.1% posted in 3Q22 and than the 18.4% posted in 4Q21.

 

In 4Q22, Net Interest Margin (Pesos) was 26.3%, higher than the 24.5% posted in 3Q22 and than the 23% in 4Q21; meanwhile Net Interest Margin (USD) was 5.6%, higher than the 5% posted in 3Q22 and than the 4.1% registered in 4Q21.

 

ASSETS & LIABILITIES PERFORMANCE (AR$)		MACRO Consolidated
In MILLION $		4Q21												3Q22												4Q22
(Measuring Unit Current at EOP)		AVERAGE				REAL INT				NOMINAL				AVERAGE				REAL INT				NOMINAL				AVERAGE				REAL INT				NOMINAL
Yields & rates in annualized nominal %		BALANCE				RATE				INT RATE				BALANCE				RATE				INT RATE				BALANCE				RATE				INT RATE
Interest-earning assets
Loans & Other Financing
Public Sector			5,671				1.3	%			42.4	%			3,215				-23.5	%			43.2	%			2,644				-11.0	%			50.0	%
Financial Sector			3,276				-5.6	%			32.7	%			1,130				-28.4	%			34.1	%			1,418				-12.3	%			47.8	%
Private Sector			618,284				-4.4	%			34.3	%			568,583				-23.5	%			43.2	%			534,488				-11.6	%			49.1	%
Other debt securities
Central Bank Securities (Leliqs)			264,816				-2.1	%			37.6	%			449,124				-9.8	%			68.8	%			486,718				6.3	%			79.2	%
Government & Private Securities			239,511				0.3	%			40.9	%			123,391				-24.0	%			42.2	%			164,161				-5.5	%			59.3	%
Repos			36,071				-3.1	%			36.2	%			30,354				-14.6	%			59.8	%			39,624				0.8	%			69.9	%
Total interest-earning assets			1,167,629				-2.9	%			36.5	%			1,175,797				-18.1	%			53.3	%			1,229,053				-3.3	%			63.0	%
Fin. Assets through P&L and equity inv.			60,468				-5.8	%			32.4	%			61,424				-58.4	%			-22.2	%			37,528				-71.5	%			-52.0	%
Other Non interest-earning assets			139,763												154,624												120,302
Total Non interest-earning assets			200,231												216,048												157,830
Total Average Assets			1,367,860												1,391,845												1,386,883
Interest-bearing liabilities
Deposits
Public Sector			38,741				-9.1	%			27.7	%			73,019				-21.6	%			46.8	%			80,866				-5.6	%			59.1	%
Private Sector			616,611				-12.0	%			23.6	%			717,747				-24.1	%			42.1	%			792,031				-10.6	%			50.7	%
BCRA and other financial institutions			604				-10.6	%			25.6	%			751				-7.0	%			74.0	%			750				18.0	%			98.9	%
Corporate bonds			6,107				-18.9	%			14.0	%			0				0.0	%			0.0	%			0				0.0	%			0.0	%
Repos			1,608				-8.3	%			28.9	%			889				-22.0	%			46.0	%			382				-8.7	%			54.0	%
Other financial liabilities			4,277				-28.8	%			0.1	%			3,684				-35.1	%			21.4	%			93,963				-39.9	%			1.4	%
Total int.-bearing liabilities			667,948				-12.0	%			23.7	%			796,090				-23.9	%			42.5	%			967,992				-13.0	%			46.7	%
Total non int.-bearing liabilities			450,280												372,954												368,824
Total Average Liabilities			1,118,228												1,169,044												1,336,816
Assets Performance							107,396												157,948												195,248
Liabilities Performance							39,824												85,231												113,855
Net Interest Income							67,572												72,717												81,393
Total interest-earning assets							1,167,629												1,175,797												1,229,053
Net Interest Margin (NIM)							23.0	%											24.5	%											26.3	%

 

 

4Q22 Earnings Release

 

ASSETS & LIABILITIES PERFORMANCE USD		MACRO Consolidated
In MILLION $		4Q21												3Q22												4Q22
(Measuring Unit Current at EOP)		AVERAGE				REAL INT				NOMINAL				AVERAGE				REAL INT				NOMINAL				AVERAGE				REAL INT				NOMINAL
Yields & rates in annualized nominal %		BALANCE				RATE				INT RATE				BALANCE				RATE				INT RATE				BALANCE				RATE				INT RATE
Interest-earning assets
Cash and Deposits in Banks			97,105				-17.3	%			0.0	%			76,743				-8.6	%			0.6	%			76,837				8.3	%			1.3	%
Loans & Other Financing
Financial Sector			0				0.0	%			0.0	%			0				0.0	%			0.0	%			31				20.6	%			12.8	%
Private Sector			37,351				11.3	%			34.6	%			31,315				21.7	%			34.0	%			33,007				45.1	%			35.7	%
Other debt securities
Central Bank Securities			57,667				-16.5	%			1.0	%			26,227				-7.4	%			2.0	%			8,975				14.1	%			6.7	%
Government & Private Securities			0				0.0	%			0.0	%			0				0.0	%			0.0	%			0				0.0	%			0.0	%
Total interest-earning assets			192,123				-11.5	%			7.1	%			138,773				-1.5	%			8.4	%			157,001				16.0	%			8.5	%
Fin. Assets through P&L and equity inv.			4,094				138.7	%			188.8	%			91,834				121.8	%			144.2	%			163,561				11.0	%			3.8	%
Non interest-earning assets			290,648												263,855												266,834
Total Non interest-earning assets			294,742												355,689												430,395
Total Average Assets			486,865												494,462												587,396
Interest-bearing liabilities
Deposits
Public Sector			8,425				-17.3	%			0.1	%			4,536				-9.1	%			0.1	%			4,485				7.0	%			0.1	%
Private Sector			118,324				-17.3	%			0.1	%			88,823				-9.2	%			0.0	%			92,862				6.9	%			0.0	%
BCRA and other financial institutions			795				-14.0	%			4.0	%			2,579				-4.8	%			4.8	%			2,121				10.3	%			3.2	%
Issued Corporte bonds			0				0.0	%			0.0	%			2,612				-7.4	%			2.0	%			2,617				9.2	%			2.1	%
Subordinated bonds			82,901				-11.9	%			6.6	%			69,306				-3.4	%			6.4	%			69,421				13.9	%			6.5	%
Total int.-bearing liabilities			210,445				-15.1	%			2.7	%			167,856				-6.6	%			2.8	%			171,506				9.8	%			2.7	%
Total non int.-bearing liabilities			86,179												80,274												76,577
Total Average liabilities			296,624												248,130												248,083
Assets Performance							3,415												2,931												3,382
Liabilities Performance							1,408												1,181												1,173
Net Interest Income							2,007												1,750												2,209
Total interest-earning assets							192,123												138,773												157,001
Net Interest Margin (NIM)							4.1	%											5.0	%											5.6	%

 

In 4Q22 Banco Macro’s net fee income totaled Ps.17.1 billion, 2% or Ps.361 million higher than in 3Q22 and was practically unchanged from the same period of last year.

 

In FY2022, net fee income was 4% higher than in the previous year.

 

In the quarter, fee income totaled Ps.19 billion, 2% or Ps.386 million higher than in 3Q22. Fees charged on deposits accounts, credit card fees and mutual funds and securities fees stood out with 2% (Ps.170 million), 7% (Ps.253 million) and 53% (Ps.128 million) increases respectively which were partially offset by a 12% decrease in debit card fees and a 9% decrease in ATM transaction fees. On a yearly basis, fee income was almost unchanged with Ps.17 million decrease.

 

In the quarter, total fee expense increased 1% or Ps.25 million. On a yearly basis, fee expenses decreased 1% or Ps.19 million.

 

NET FEE INCOME		MACRO Consolidated																				Change
In MILLION $ (Measuring Unit Current at EOP)		4Q21				3Q22				4Q22				FY2021				FY2022				QoQ				YoY
Fees charged on deposit accounts			7,031				6,940				7,110				27,674				28,332				2	%			1	%
Credit card fees			3,431				3,460				3,713				12,831				14,052				7	%			8	%
Corporate services fees			2,269				2,665				2,610				8,040				10,198				-2	%			15	%
ATM transactions fees			1,742				1,568				1,426				6,733				6,300				-9	%			-18	%
Insurance fees			1,154				987				1,016				4,451				4,226				3	%			-12	%
Debit card fees			1,286				1,206				1,066				4,696				4,758				-12	%			-17	%
Financial agent fees (Provinces)			1,058				1,023				1,077				4,020				4,162				5	%			2	%
Credit related fees			484				414				512				1,708				1,798				24	%			6	%
Mutual funds & securities fees			420				241				369				1,477				1,264				53	%			-12	%
AFIP & Collection services			83				58				52				310				233				-10	%			-37	%
ANSES fees			25				18				15				102				80				-17	%			-40	%
Total fee income			18,983				18,580				18,966				72,042				75,403				2	%			0	%
Total fee expense			1,919				1,875				1,900				6,878				7,414				1	%			-1	%
Net fee income			17,064				16,705				17,066				65,164				67,989				2	%			0	%

 

 

4Q22 Earnings Release

 

In 4Q22, as opposed to previous quarters Net Income from financial assets and liabilities at fair value through profit or loss totaled a Ps.3.4 billion loss, mainly due to the mark to market of some government securities. In 4Q22 a Ps.9.5 billion loss was recorded related to government securities which was partially offset by a Ps.5.4 billion gain in private securities.

 

In FY2022, Net Income from financial assets and liabilities at fair value through profit or loss was 24% higher than in FY2021, mainly due to higher income from private securities.

 

NET INCOME FROM FINANCIAL ASSETS AND LIABILITIES AT FAIR VALUE THROUGH PROFIT OR LOSS		MACRO Consolidated																				Change
In MILLION $ (Measuring Unit Current at EOP)		4Q21				3Q22				4Q22				FY2021				FY2022				QoQ				YoY
Profit or loss from government securities			5,349				21,375				-9,525				32,949				18,345				-				-
Profit or loss from private securities			-88				8,267				5,390				2,422				19,740				-35	%			-
Profit or loss from investment in derivative financing instruments			0				123				619				0				752				403	%			0	%
Profit or loss from other financial assets			-12				-41				25				-28				-26				-				-
Profit or loss from investment in equity instruments			1,141				-96				51				2,025				6,746				-				-96	%
Profit or loss from the sale of financial assets at fair value			517				318				74				1,391				2,290				-77	%			-86	%
Income from financial assets at fair value through profit or loss			6,907				29,946				-3,366				38,759				47,847				-				-
Profit or loss from derivative financing instruments			-16				0				0				-182				0				-				-
Income from financial liabilities at fair value through profit or loss			-16				0				0				-182				0				-				-
NET INCOME FROM FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS			6,891				29,946				-3,366				38,577				47,847				-				-

 

In the quarter, Other Operating Income totaled Ps.5.8 billion, 31% or Ps.1.4 billion higher than in 3Q22. On a yearly basis, Other Operating Income increased 49% or Ps.1.9 billion.

 

In FY2022, Other Operating Income was 39% higher than in FY2021.

 

OTHER OPERATING INCOME		MACRO Consolidated																				Change
In MILLION $ (Measuring Unit Current at EOP)		4Q21				3Q22				4Q22				FY2021				FY2022				QoQ				YoY
Credit and debit cards			275				342				839				753				1,812				145	%			205	%
Lease of safe deposit boxes			580				511				511				2,281				2,143				0	%			-12	%
Other service related fees			1,410				1,314				1,678				5,336				5,655				28	%			19	%
Sale of real estate and other non-financial assets			76				-2				-24				76				0				-				-
Other adjustments and interest from other receivables			591				1,138				1,307				2,861				4,058				15	%			121	%
Initial recognition of loans			0				-118				0				0				0				-				0	%
Sale of property, plant and equipment			4				0				35				9				35				-				775	%
Others			938				1,209				1,413				3,944				7,474				17	%			51	%
Other Operating Income			3,874				4,394				5,759				15,260				21,177				31	%			49	%

 

In 4Q22 Banco Macro’s administrative expenses plus employee benefits totaled Ps.29.2 billion, 4% or Ps.1.2 billion lower than the previous quarter, due to lower employee expenses (9%) and a 7% increase in administrative expenses. On a yearly basis, administrative expenses plus employee benefits decreased 4% or Ps.1.2 billion.

 

In FY2022 administrative expenses plus employee benefits increased 1% compared to FY2021, showing the strict cost control policies adopted by the Bank’s senior management.

 

 

4Q22 Earnings Release

 

Employee benefits decreased 9% or Ps.1.9 billion QoQ. On a yearly basis, Employee benefits decreased 1% or Ps.156 million.

 

In 4Q22, administrative expenses increased 7% or Ps.676 million, due to higher Other professional fees (28%) higher maintenance and conservation fees (9%) and higher advertising and publicity fees (24%).

 

As of 4Q22, the accumulated efficiency ratio reached 28.6%, improving from the 29.1% posted in 3Q22 and much better than the 37.5% posted a year ago. In 4Q22 expenses (employee benefits + G&A expenses + depreciation and impairment of assets) increased 2%, while income (net interest income + net fee income + differences in quoted prices of gold and foreign currency + other operating income + net income from financial assets at fair value through profit or loss – (Turnover Tax + Insurance on deposits)) increased 33% compared to 3Q22.

 

PERSONNEL & ADMINISTRATIVE EXPENSES		MACRO Consolidated																				Change
In MILLION $ (Measuring Unit Current at EOP)		4Q21				3Q22				4Q22				FY2021				FY2022				QoQ				YoY
Employee benefits			18,946				20,709				18,790				76,907				77,638				-9	%			-1	%
Remunerations			13,132				14,076				13,099				54,584				53,578				-7	%			0	%
Social Security Contributions			3,129				3,581				3,480				12,595				13,221				-3	%			11	%
Compensation and bonuses			1,951				2,357				1,562				7,611				8,116				-34	%			-20	%
Employee services			734				695				649				2,117				2,723				-7	%			-12	%
Administrative Expenses			11,486				9,730				10,406				39,138				39,156				7	%			-9	%
Taxes			1,443				1,681				1,646				5,704				6,415				-2	%			14	%
Maintenance, conservation fees			1,733				1,537				1,673				6,462				6,236				9	%			-3	%
Directors & statutory auditors fees			751				429				767				1,523				1,975				79	%			2	%
Security services			1,009				934				943				3,972				3,761				1	%			-7	%
Electricity & Communications			940				877				817				3,960				3,465				-7	%			-13	%
Other professional fees			964				900				1,151				3,317				3,780				28	%			19	%
Rental agreements			57				39				40				228				173				3	%			-30	%
Advertising & publicity			679				511				636				1,700				2,375				24	%			-6	%
Personnel allowances			193				193				228				470				683				18	%			18	%
Stationary & Office Supplies			71				64				77				246				272				20	%			8	%
Insurance			123				109				95				529				413				-13	%			-23	%
Hired administrative services			80				75				69				243				266				-8	%			-
Other			3,443				2,381				2,264				10,784				9,342				-5	%			-34	%
Total Administrative Expenses			30,432				30,439				29,196				116,045				116,794				-4	%			-4	%
Total Employees			8,005				7,857				7,781
Branches			466				466				467
Efficiency ratio			37.4	%			25.8	%			27.2	%
Accumulated efficiency ratio			37.5	%			29.1	%			28.6	%

 

In 4Q22, Other Operating Expenses totaled Ps.20 billion, decreasing 1% or Ps.284 million QoQ, due to lower other provision charges (Ps.1.5 billion). On a yearly basis, Other Operating Expenses increased 4% or Ps.734 million.

 

In FY2022, Other Operating Expenses were 12% higher than in FY2021.

 

OTHER OPERATING EXPENSES		MACRO Consolidated																				Change
In MILLION $ (Measuring Unit Current at EOP)		4Q21				3Q22				4Q22				FY2021				FY2022				QoQ				YoY
Turnover Tax			8,995				11,049				11,479				35,193				41,332				4	%			28	%
Other provision charges			984				1,195				-287				3,162				2,383				-				-
Deposit Guarantee Fund Contributions			473				478				513				2,029				1,913				7	%			8	%
Donations			38				164				28				57				421				-83	%			-26	%
Insurance claims			72				114				148				174				435				30	%			106	%
Initial loan recognition			1,560				451				114				1,952				565				-75	%			-93	%
Others			7,125				6,814				7,986				24,124				27,945				17	%			12	%
Other Operating Expenses			19,247				20,265				19,981				66,691				74,994				-1	%			4	%

 

 

4Q22 Earnings Release

 

In 4Q22, the result from the net monetary position totaled a Ps.57 billion loss, 17% or Ps.11.5 billion lower than the loss posted in 3Q22. Lower inflation was observed during the quarter (468 b.p. below 3Q22 level, down to 17.3% from 22% in 3Q22).

 

In FY2022, the result from net monetary position was 81% higher than the one posted in FY2021 as inflation soared to 94.8% from 50.9% a year ago.

 

In FY2022, Banco Macro's effective income tax rate 31.1%, higher than the 5.8% effective tax rate of FY2021. It should be noted that in FY2021 the effective tax rate was affected by the implications of inflation adjustments on accounting and tax balances and the determination of income tax due and deferred income tax. For more information, please see Note 25 “Income Tax” of our Financial Statements.

 

OPERATING RESULT		MACRO consolidated																				Change
In MILLION $ (Measuring Unit Current at EOP)		4Q21				3Q22				4Q22				FY2021				FY2022				QoQ				YoY
Operating Result (exc. Loss from net monetary position)			43,591				88,083				78,182				182,385				291,187				-11	%			79	%
Result from net monetary position (i.e. inflation adjustment)			-29,565				-68,423				-56,970				-126,482				-228,573				-17	%			93	%
Operating Result (Inc. Loss from net monetary position)			14,026				19,660				21,212				55,903				62,614				8	%			51	%

 

Financial Assets

 

Private sector financing

 

The volume of “core” financing to the private sector (including loans, financial trust and leasing portfolio) totaled Ps.596.4 billion, increasing Ps.2 billion QoQ and decreasing 12% or Ps.83.4 billion YoY.

 

Within commercial loans, Overdrafts stand out with a 2% or Ps.1.2 billion decrease.

 

Within consumer lending, credit card loans increased 6% or Ps.10 billion while credit card loans and mortgage loans decreased 7% and 4% respectively QoQ.

 

Within private sector financing, peso financing decreased 1% or Ps.3.3 billion, while US dollar financing decreased 2% or USD 5 million.

 

In FY2022 credit card loans stand out with a 3% increase while personal loans decreased 25%.

 

As of 4Q22, Banco Macro’s market share over private sector loans was 7.4%.

 

 

4Q22 Earnings Release

 

FINANCING TO THE PRIVATE SECTOR		MACRO Consilidated												Change
In MILLION $ (Measuring Unit Current at EOP)		4Q21				3Q22				4Q22				QoQ				YoY
Overdrafts			45,319				46,517				45,396				-2	%			0	%
Discounted documents			77,256				74,987				75,911				1	%			-2	%
Mortgage loans			42,884				24,549				23,462				-4	%			-45	%
Pledged loans			14,271				9,374				9,320				-1	%			-35	%
Personal loans			182,357				146,420				136,590				-7	%			-25	%
Credit Card loans			184,982				180,758				190,779				6	%			3	%
Others			68,565				50,488				51,458				2	%			-25	%
Interest			60,095				57,281				60,047				5	%			0	%
Total loan portfolio			675,729				590,374				592,963				0	%			-12	%
Total loans in Pesos			646,963				560,646				557,923				0	%			-14	%
Total loans in USD			28,766				29,728				35,040				18	%			22	%
Financial trusts			1,034				1,351				951				-30	%			-8	%
Leasing			931				1,257				1,387				10	%			49	%
Others			2,098				1,409				1,117				-21	%			-47	%
Total other financing			4,063				4,017				3,455				-14	%			-15	%
Total other financing in Pesos			2,897				3,092				2,505				-19	%			-14	%
Total other financing in USD			1,166				925				950				3	%			-19	%
Total financing to the private sector			679,792				594,391				596,418				0	%			-12	%
EOP FX (Pesos per USD)			102.7500				147.3150				177.1283				20	%			72	%
USD financing / Financing to the private sector			4	%			5	%			6	%

 

Public Sector Assets

 

In 4Q22, the Bank’s public sector assets (excluding LELIQs) to total assets ratio was 18.5%, higher than the 17.8% registered in the previous quarter, and higher than the 18.1% posted in 4Q21.

 

In 4Q22, a 5% or Ps.18.2 billion increase in Other government securities stand out while Central Bank Notes decreased 71% or Ps.29.3 billion.

 

PUBLIC SECTOR ASSETS		MACRO Consolidated												Change
In MILLION $ (Measuring Unit Current at EOP)		4Q21				3Q22				4Q22				QoQ				YoY
Notaliq / Central Bank Notes			0				41,438				12,106				-71	%			-
Leliqs			259,018				489,953				491,522				0	%			90	%
Other			346,801				366,784				384,976				5	%			11	%
Government securities			605,819				898,175				888,604				-1	%			47	%
Provincial loans			4,157				1,678				1,722				3	%			-59	%
Loans			4,157				1,678				1,722				3	%			-59	%
Purchase of government bonds			351				0				0				-				-100	%
Other receivables			351				0				0				-				-
TOTAL PUBLIC SECTOR ASSETS			610,327				899,853				890,326				-1	%			46	%
TOTAL PUBLIC SECTOR ASSETS (net of LEBAC/NOBAC/LELIQ)			351,309				368,462				386,698				5	%			10	%
TOTAL PUBLIC SECTOR ASSETS (net of LEBAC/NOBAC/LELIQ)/TOTAL ASSETS			18.1	%			17.8	%			18.5	%

 

 

 

4Q22 Earnings Release

 

Funding

 

Deposits

 

Banco Macro’s deposit base totaled Ps.1.3 trillion in 4Q22, decreasing 2% or Ps.23.5 billion QoQ and a 13% or Ps.148.4 billion increase YoY and representing 82% of the Bank’s total liabilities.

 

On a quarterly basis private sector deposits increased 2% or Ps.24.5 billion while public sector deposits decreased 30% or Ps.48.1 billion.

 

The increase in private sector deposits was led demand deposits, which increased 5% or Ps.27.6 billion, while time deposits decreased 2% or Ps.9 billion QoQ.

 

Within private sector deposits, peso deposits decreased 4% or Ps.41.7 billion, while US dollar deposits decreased 7% or USD 72 million.

 

In FY2022, within private sector deposits, time deposits increased 28% or Ps.129.3 while demand deposits increased 1% or Ps.4.2 billion.

 

As of 4Q22, Banco Macro´s market share over private sector deposits was 6.3%.

 

DEPOSITS		MACRO Consolidated												Change
In MILLION $ (Measuring Unit Current at EOP)		4Q21				3Q22				4Q22				QoQ				YoY
Public sector			109,868				158,080				109,952				-30	%			0	%
Financial sector			1,872				1,494				1,653				11	%			-12	%
Private sector			1,035,301				1,159,291				1,183,790				2	%			14	%
Checking accounts			196,485				174,872				159,124				-9	%			-19	%
Savings accounts			358,322				328,102				371,400				13	%			4	%
Time deposits			454,741				593,072				584,033				-2	%			28	%
Other			25,753				63,245				69,233				9	%			169	%
Total			1,147,041				1,318,865				1,295,395				-2	%			13	%
Pesos			958,865				1,166,069				1,124,374				-4	%			17	%
Foreign Currency (Pesos)			188,176				152,796				171,021				12	%			-9	%
EOP FX (Pesos per USD)			102.7500				147.3150				177.1283				20	%			72	%
Foreign Currency (USD)			1,831				1,037				966				-7	%			-47	%
USD Deposits / Total Deposits			16	%			12	%			13	%

 

Banco Macro’s transactional deposits represent approximately 45% of its total deposit base as of 4Q22. These accounts are low cost and are not sensitive to interest rate increases.

 

 

4Q22 Earnings Release

 

Other sources of funds

 

In 4Q22, the total amount of other sources of funds increased 2% or Ps.14.3 billion compared to 3Q22 mainly due to a 3% or Ps.14.1 increase in Shareholders’ equity. On a yearly basis, other sources of funds increased 7% or Ps.36.5 billion.

 

OTHER SOURCES OF FUNDS		MACRO Consolidated												Change
In MILLION $ (Measuring Unit Current at EOP)		4Q21				3Q22				4Q22				QoQ				YoY
Central Bank of Argentina			42				36				46				28	%			10	%
Banks and international institutions			535				2,055				2,383				16	%			345	%
Financing received from Argentine financial institutions			276				761				20				-97	%			-93	%
Subordinated corporate bonds			81,763				71,541				72,130				1	%			-12	%
Corporate bonds			5,826				2,704				2,716				0	%			-53	%
Shareholders' equity			464,715				498,304				512,410				3	%			10	%
Total other source of funds			553,157				575,401				589,705				2	%			7	%

 

Liquid Assets

 

In 4Q22, the Bank’s liquid assets amounted to Ps.1.2 trillion, showing a 1% or Ps.8.2 billion decrease QoQ, and a 19% or Ps.192.5 billion increase on a yearly basis.

 

In 4Q22, Other government securities increased 5% or Ps.18.2 billion. Cash increased 6% or Ps.14.3 billion.

 

In 4Q22, Banco Macro’s liquid assets to total deposits ratio reached 95%.

 

LIQUID ASSETS		MACRO Consolidated												Change
In MILLION $ (Measuring Unit Current at EOP)		4Q21				3Q22				4Q22				QoQ				YoY
Cash			335,692				235,830				250,089				6	%			-26	%
Guarantees for compensating chambers			30,242				26,809				24,825				-7	%			-18	%
Notaliq / Central Bank Notes			0				41,438				12,106				-71	%			-
Leliq own portfolio			259,018				489,953				491,522				0	%			90	%
Net Repos			61,176				72,874				61,929				-15	%			1	%
Other government & private securities			346,801				366,784				384,976				5	%			11	%
Total			1,032,929				1,233,688				1,225,447				-1	%			19	%
Liquid assets to total deposits			90	%			94	%			95	%

 

 

4Q22 Earnings Release

 

Solvency

 

Banco Macro continued showing high solvency levels in 4Q22 with an integrated capital (RPC) of Ps.515.3 billion over a total capital requirement of Ps.105.1 billion. Banco Macro’s excess capital in 4Q22 was 391% or Ps.410.3 billion.

 

The regulatory capital ratio (as a percentage of risk-weighted assets- RWA) was 39.9% in 4Q22; TIER1 Ratio stood at 36.6%.

 

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

 

MINIMUM CAPITAL REQUIREMENT		MACRO Consolidated												Change
In MILLION $		4Q21				3Q22				4Q22				QoQ				YoY
Credit risk requirement			36,726				52,233				60,581				16	%			65	%
Market risk requirement			3,585				9,998				11,709				17	%			227	%
Operational risk requirement			17,438				26,568				32,771				23	%			88	%
Total capital requirements			57,749				88,800				105,061				18	%			82	%
Ordinary Capital Level 1 (COn1)			233,700				418,322				500,504				20	%			114	%
Deductible concepts Level 1 (COn1)			-14,585				-24,630				-27,620				12	%			89	%
Capital Level 2 (COn2)			36,401				47,051				42,447				-10	%			17	%
Integrated capital - RPC (i)			255,516				440,743				515,330				17	%			102	%
Excess capital			197,767				351,943				410,269				17	%			107	%
Risk-weighted assets - RWA (ii)			708,490				1,090,977				1,291,206				18	%			82	%
Regulatory Capital ratio [(i)/(ii)]			36.1	%			40.4	%			39.9	%
Ratio TIER 1 [Capital Level 1/RWA]			30.9	%			36.1	%			36.6	%
RWA - (ii): Risk Weighted Assets, considering total capital requirements.

 

 

4Q22 Earnings Release

 

Asset Quality

 

In 4Q22, Banco Macro’s non-performing to total financing ratio (under Central Bank rules) reached a level of 1.25%, down from 1.27% in 3Q22, and than the 1.30% posted in 4Q21.

 

Consumer portfolio non-performing loans improved 14b.p. (down to 1.1% from 1.24%) while Commercial portfolio non-performing loans deteriorated 52b.p. in 4Q21 (up to 1.95% from 1.43%).

 

The coverage ratio (measured as total allowances under Expected Credit Losses over Non Performing loans under Central Bank rules) remained stable at to 151.69% in 4Q22. Write-offs over total loans totaled 0.10%.

 

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

 

ASSET QUALITY		MACRO Consolidated												Change
In MILLION $ (Measuring Unit Current at EOP)		4Q21				3Q22				4Q22				QoQ				YoY
Commercial portfolio			169,763				121,641				113,086				-7	%			-33	%
Non-performing			1,688				1,736				2,207				27	%			31	%
Consumer portfolio			543,782				496,170				506,727				2	%			-7	%
Non-performing			7,591				6,127				5,554				-9	%			-27	%
Total portfolio			713,545				617,811				619,813				0	%			-13	%
Non-performing			9,279				7,863				7,761				-1	%			-16	%
Commercial non-perfoming ratio			0.99	%			1.43	%			1.95	%
Consumer non-perfoming ratio			1.40	%			1.23	%			1.10	%
Total non-performing/ Total portfolio			1.30	%			1.27	%			1.25	%
Total allowances			19,448				12,041				11,773				-2	%			-39	%
Coverage ratio w/allowances			209.59	%			153.13	%			151.69	%
Write Offs			1,117				854				637				-25	%			-43	%
Write Offs/ Total portfolio			0.16	%			0.14	%			0.10	%

 

Expected Credit Losses (E.C.L) (I.F.R.S.9)

 

The Bank records an allowance for expected credit losses for all loans and other debt financial assets not held at fair value through profit or loss, together with loan commitments and financial guarantee contracts, in this section all referred to as ‘financial instruments’. Equity instruments are not subject to impairment under IFRS 9. The ECL allowance is based on the credit losses expected to arise over the life of the asset (the lifetime expected credit loss), unless there has been no significant increase in credit risk since origination, in which case, the allowance is based on the 12 months expected credit loss.(For further information please see our 2021 20-F)

 

 

4Q22 Earnings Release

 

CER Exposure and Foreign Currency Position

 

CER EXPOSURE		MACRO Consolidated												Change
In MILLION $ (Measuring Unit Current at EOP)		4Q21				3Q22				4Q22				QoQ				YoY
CER adjustable ASSETS
Government Securities			190,780				185,796				137,975				-26	%			-28	%
Loans (*)			50,981				45,065				45,085				0	%			-12	%
Private sector loans			13,624				8,282				7,324				-12	%			-46	%
Mortgage loans (UVA adjusted)			37,333				36,750				37,734				3	%			1	%
Other loans			24				33				27				-18	%			13	%
Total CER adjustable assets			241,761				230,861				183,060				-21	%			-24	%
CER adjustable LIABILITIES
Deposits (*)			15,072				18,923				12,265				-35	%			-19	%
UVA Unemployment fund			3,123				4,053				4,364				8	%			40	%
Total CER adjustable liabilities			18,195				22,976				16,629				-28	%			-9	%
NET CER EXPOSURE			223,566				207,885				166,431				-20	%			-26	%
(*) Includes Loans &Time Deposits CER adjustable (UVAs)

 

FOREIGN CURRENCY POSITION		MACRO Consolidated												Change
In MILLION $ (Measuring Unit Current at EOP)		4Q21				3Q22				4Q22				QoQ				YoY
Cash and deposits in Banks			237,705				195,860				210,634				8	%			-11	%
Cash			17,301				18,097				5,462				-70	%			-68	%
Central Bank of Argentina			62,449				69,707				74,085				6	%			19	%
Other financial institutions local and abroad			76,079				78,957				78,933				0	%			4	%
Others			13				12				12				0	%			-8	%
Financial instruments at fair value through P&L			2,404				171,954				177,936				3	%			7302	%
Other financial assets			11,668				13,761				15,674				14	%			34	%
Loans and other financing			29,871				30,602				35,940				17	%			20	%
Other financial institutions			0				0				0				-				-
Non financial private sector & foreign residents			29,871				30,602				35,940				0	%			20	%
Other debt securities			65,978				47,669				53,835				13	%			-18	%
Guarantees received			4,474				3,993				4,898				23	%			9	%
Investment in equity instruments			136				143				160				12	%			18	%
Investment in associates and joint ventures			0				0				0				-				-
Total Assets			352,236				463,982				499,077				8	%			42	%
Deposits			188,176				152,796				171,021				12	%			-9	%
Non financial public sector			14,953				6,280				6,163				-2	%			-59	%
Financial sector			1,482				1,365				1,399				2	%			-6	%
Non financial private sector & foreign residents			171,741				145,151				163,459				13	%			-5	%
Liabilities at fair value through P&L			246				783				526				-33	%			114	%
Other liabilities from financial intermediation			12,676				14,267				16,099				13	%			27	%
Financing from the Central Bank and other fin. Inst			539				2,073				2,398				16	%			345	%
Subordinated corporate bonds			81,763				71,541				72,130				1	%			-12	%
Issued corporate bonds			0				2,704				2,716
Other non financial liabilities			79				75				53				-29	%			-33	%
Total Liabilities			283,479				244,239				264,943				8	%			-7	%
NET FX POSITION (Pesos)			68,757				219,743				234,134				7	%			241	%
EOP FX (Pesos per USD)			102.7500				147.3150				177.1283				20	%			72	%
NET FX POSITION (USD)			669				1,492				1,322				-11	%			98	%

 

17

 

 

4Q22 Earnings Release

 

4Q22 Snapshot

 

In AR$ Million. Figures of previous quarters have been restated to reflect the accumulated effect of the inflation adjustment for each period through December 31, 2022

 

 

18

 

 

4Q22 Earnings Release

 

 

19

 

 

4Q22 Earnings Release

 

Relevant and Recent Events

 

•

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

 

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

 

As of this date the Bank has paid

 

•

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

 

•

On July 6, 2022 a cash dividend in the amount of Ps.1,645,953,695.31 (installment 7)

 

•

On August 2, 2022 a cash dividend in the amount of Ps.1,645,953,695.31 (installment 8)

 

•

On September 6, 2022 a cash dividend in the amount of Ps.1,645,953,695.31 (installment 9)

 

•

On October 4, 2022 a cash dividend in the amount of Ps.1,645,953,695.31 (installment 10)

 

•

On November 1, 2022 a cash dividend in the amount of Ps. 1,645,953,695.31 (installment 11)

 

•

On December 6, 2022 a cash dividend in the amount of Ps.1,645,953,695.31 (installment 12)

 

•

Interest Payment Series E Dollar denominated Notes. In February 2023, the Bank paid quarterly interest on Class E dollar denominated notes in the amount of USD 62,131.5.

 

Regulatory Changes

 

•

Minimum Reserve Requirements. In November 2022, through Communication “A” 7637 the Central Bank of Argentina announced that financial institutions could set up reserve requirements (daily and monthly balances) with Government Securities, specifically with "Bonos del Tesoro Nacional en pesos due November 23, 2027" while maintaining the same terms and conditions that “Bonos del Tesoro Nacional en pesos due May 23, 2027”

 

•

Repo Interest Rate. On January 18, 2023, through Communication “C” 94.417 the Central Bank of Argentina established that the 1 day Repo Rate would increase 2% from 70% to 72% and from 95% to 97%.

 

•

CEDIP – Digital Time Deposit. In January 2023, through Communication “A” 7672 the Central Bank established the Digital Certificate of Deposits and Investments. This Certificate is fully divisible, transferable, and digitally registered. The objective is to assimilate time deposits made through home banking or mobile banking with the ones made through the branches.

 

•

Debtor Classification – Agribusiness Emergency Law In February 2023 through Communication “A” 7687 the Central Bank of Argentina established that until December 31, 2023 for all those agro producers included in the Agribusiness emergency law debtor classification should be as follows:

 

o

Stage 1 –normal situation-: loans due up to 75 days.

 

o

Stage 2 –observed or low risk- loans due more than 76 days and up to 135 days.

 

o

Stage 3 – troubled or medium risk- loans due more than 136 days and up to 225 days.

 

20

 

 

4Q22 Earnings Release

 

QUARTERLY BALANCE SHEET		MACRO Consolidated																				Change
In MILLION $ (Measuring Unit Current at EOP)		4Q21				3Q22				4Q22				FY2021				FY2022				QoQ				YoY
ASSETS
Cash and deposits in Banks			335,692				235,830				250,089				335,692				250,089				6	%			-26	%
Cash			51,863				39,398				27,613				51,863				27,613				-30	%			-47	%
Central Bank of Argentina			207,730				117,283				143,527				207,730				143,527				22	%			-31	%
Other local & foreign entities			82,331				52,267				39,061				82,331				39,061				-25	%			-53	%
Other			12				11				11				12				11				0	%			-8	%
Debt securities at fair value through profit & loss			63,126				210,153				211,054				63,126				211,054				0	%			234	%
Derivatives			3				162				43				3				43				-73	%			1333	%
Repo Transactions			61,176				73,285				61,929				61,176				61,929				-15	%			1	%
Other financial assets			68,497				38,037				57,945				68,497				57,945				52	%			-15	%
Loans & other receivables			686,328				596,228				598,601				686,328				598,601				0	%			-13	%
Non Financial Public Sector			4,628				2,087				2,207				4,628				2,207				6	%			-52	%
Financial Sector			2,942				1,101				927				2,942				927				-16	%			-68	%
Non Financial private sector and foreign			678,758				593,040				595,467				678,758				595,467				0	%			-12	%
Other debt securities			557,069				741,698				737,506				557,069				737,506				-1	%			32	%
Financial assets in guarantee			34,993				31,972				30,620				34,993				30,620				-4	%			-12	%
Investments in equity instruments			4,246				794				839				4,246				839				6	%			-80	%
Investments in other companies (subsidiaries and joint ventures)			954				1,130				1,142				954				1,142				1	%			20	%
Property, plant and equipment			102,991				101,505				101,864				102,991				101,864				0	%			-1	%
Intangible assets			16,371				17,614				17,440				16,371				17,440				-1	%			7	%
Deferred income tax assets			1,059				-				-				1,059				-				-				-100	%
Other non financial assets			4,542				15,685				12,453				4,542				12,453				-21	%			174	%
Non-current assets held for sale			6,314				6,173				8,856				6,314				8,856				43	%			40	%
TOTAL ASSETS			1,943,454				2,070,371				2,090,455				1,943,454				2,090,455				1	%			8	%
LIABILITIES
Deposits			1,147,041				1,318,865				1,295,395				1,147,041				1,295,395				-2	%			13	%
Non Financial Public Sector			109,868				158,080				109,952				109,868				109,952				-30	%			0	%
Financial Sector			1,872				1,494				1,653				1,872				1,653				11	%			-12	%
Non Financial private sector and foreign			1,035,301				1,159,291				1,183,790				1,035,301				1,183,790				2	%			14	%
Liabilities at fair value through profit & loss			3,171				783				526				3,171				526
Derivatives			5				2				2				5				2				0	%			-
Repo Transactions			-				411				-				-				-				-100	%			-
Other financial liabilities			131,278				99,669				135,091				131,278				135,091				36	%			3	%
Financing received from Central Bank and Other Financial Institutions			853				2,853				2,449				853				2,449				-14	%			187	%
Issued Corporate Bonds			5,826				2,704				2,716				5,826				2,716				0	%			-53	%
Current income tax liabilities			684				7,897				10,849				684				10,849				37	%			1486	%
Subordinated corporate bonds			81,763				71,541				72,130				81,763				72,130				1	%			-12	%
Provisions			3,198				3,687				2,713				3,198				2,713				-26	%			-15	%
Deferred income tax liabilities			11,088				15,456				13,278				11,088				13,278				-14	%			20	%
Other non financial liabilities			93,758				48,124				42,811				93,758				42,811				-11	%			-54	%
TOTAL LIABILITIES			1,478,665				1,571,992				1,577,960				1,478,665				1,577,960				0	%			7	%
SHAREHOLDERS' EQUITY
Capital Stock			639				639				639				639				639				0	%			0	%
Issued Shares premium			12,430				12,430				12,430				12,430				12,430				0	%			0	%
Adjustment to Shareholders' Equity			173,290				173,290				173,290				173,290				173,290				0	%			0	%
Reserves			237,309				282,844				282,844				237,309				282,844				0	%			19	%
Retained earnings			-17,376				137				137				-17,376				137				0	%			-
Other accumulated comprehensive income			5,590				2,530				31				5,590				31				-99	%			-99	%
Net income for the period / fiscal year			52,833				26,434				43,039				52,833				43,039				63	%			-19	%
Shareholders' Equity attributable to parent company			464,715				498,304				512,410				464,715				512,410				3	%			10	%
Shareholders' Equity attributable to non controlling interest			74				75				85				74				85				13	%			15	%
TOTAL SHAREHOLDERS' EQUITY			464,789				498,379				512,495				464,789				512,495				3	%			10	%

 

21

 

 

4Q22 Earnings Release

 

ANNUAL BALANCE SHEET		Macro Consolidated								Change%
In MILLION $ (Measuring Unit Current at EOP)		FY2021				FY2022				YoY
ASSETS
Cash and deposits in Banks			335,692				250,089				-26	%
Cash			51,863				27,613				-47	%
Central Bank of Argentina			207,730				143,527				-31	%
Other local & foreign entities			82,331				39,061				-53	%
Other			12				11				-8	%
Debt securities at fair value through profit & loss			63,126				211,054				234	%
Derivatives			3				43				1333	%
Repo Transactions			61,176				61,929				1	%
Other financial assets			68,497				57,945				-15	%
Loans & other receivables			686,328				598,601				-13	%
Non Financial Public Sector			4,628				2,207				-52	%
Financial Sector			2,942				927				-68	%
Non Financial private sector and foreign			678,758				595,467				-12	%
Other debt securities			557,069				737,506				32	%
Financial assets in guarantee			34,993				30,620				-12	%
Investments in equity instruments			4,246				839				-80	%
Investments in other companies (subsidiaries and joint ventures)			954				1,142				20	%
Property, plant and equipment			102,991				101,864				-1	%
Intangible assets			16,371				17,440				7	%
Deferred income tax assets			1,059				-				-100	%
Other non financial assets			4,542				12,453				174	%
Non-current assets held for sale			6,314				8,856				40	%
TOTAL ASSETS			1,943,454				2,090,455				8	%
LIABILITIES
Deposits			1,147,041				1,295,395				13	%
Non Financial Public Sector			109,868				109,952				0	%
Financial Sector			1,872				1,653				-12	%
Non Financial private sector and foreign			1,035,301				1,183,790				14	%
Liabilities at fair value through profit & loss			3,171				526				-83	%
Derivatives			5				2				-60	%
Repo Transactions			-				-				0	%
Other financial liabilities			131,278				135,091				3	%
Financing received from Central Bank and Other Financial Institutions			853				2,449				187	%
Issued Corporate Bonds			5,826				2,716				-53	%
Current income tax liabilities			684				10,849				1486	%
Subordinated corporate bonds			81,763				72,130				-12	%
Provisions			3,198				2,713				-15	%
Deferred income tax liabilities			11,088				13,278				20	%
Other non financial liabilities			93,758				42,811				-54	%
TOTAL LIABILITIES			1,478,665				1,577,960				7	%
SHAREHOLDERS' EQUITY
Capital Stock			639				639				0	%
Issued Shares premium			12,430				12,430				0	%
Adjustment to Shareholders' Equity			173,290				173,290				0	%
Reserves			237,309				282,844				19	%
Retained earnings			-17,376				137				-101	%
Other accumulated comprehensive income			5,590				31				-99	%
Net income for the period / fiscal year			52,833				43,039				-19	%
Shareholders' Equity attributable to parent company			464,715				512,410				10	%
Shareholders' Equity attributable to non controlling interest			74				85				15	%
TOTAL SHAREHOLDERS' EQUITY			464,789				512,495				10	%

 

22

 

 

4Q22 Earnings Release

 

INCOME STATEMENT		MACRO Consolidated																				Change
In MILLION $ (Measuring Unit Current at EOP)		4Q20				3Q21				4Q21				FY2020				FY2021				QoQ				YoY
Interest Income			110,811				160,879				198,630				439,127				612,465				23	%			79	%
Interest Expense			41,232				86,412				115,028				183,872				307,140				33	%			179	%
Net Interest Income			69,579				74,467				83,602				255,255				305,325				12	%			20	%
Fee income			18,983				18,580				18,966				72,042				75,403				2	%			0	%
Fee expense			1,919				1,875				1,900				6,878				7,414				1	%			-1	%
Net Fee Income			17,064				16,705				17,066				65,164				67,989				2	%			0	%
Subtotal (Net Interest Income + Net Fee Income)			86,643				91,172				100,668				320,419				373,314				10	%			16	%
Net Income from financial instruments at Fair Value Through Profit & Loss			6,891				29,946				-3,366				38,577				47,847				-				-149	%
Result from assets at amortised cost			177				-				170				475				170				-				-4	%
Difference in quoted prices of gold and foreign currency			3,116				18,802				30,597				9,053				62,274				63	%			882	%
Other operating income			3,874				4,394				5,759				15,260				21,177				31	%			49	%
Provision for loan losses			3,824				1,672				2,533				4,783				6,558				51	%			-34	%
Net Operating Income			96,877				142,642				131,295				379,001				498,224				-8	%			36	%
Personnel expenses			18,946				20,709				18,790				76,907				77,638				-9	%			-1	%
Administrative expenses			11,486				9,730				10,406				39,138				39,156				7	%			-9	%
Depreciation and impairment of assets			3,607				3,855				3,936				13,880				15,249				2	%			9	%
Other operating expense			19,247				20,265				19,981				66,691				74,994				-1	%			4	%
Operating Income			43,591				88,083				78,182				182,385				291,187				-11	%			79	%
Income from associates and joint ventures			69				-113				117				170				-114				-204	%			70	%
Result from net monetary position			-29,565				-68,423				-56,970				-126,482				-228,573				-17	%			93	%
Net Income before income tax on cont. operations			14,095				19,547				21,329				56,073				62,500				9	%			51	%
Income tax on continuing operations			-6,424				9,130				4,715				3,239				19,454				-48	%			-173	%
Net Income from continuing operations			20,519				10,417				16,614				52,834				43,046				59	%			-19	%
Net Income for the period			20,519				10,417				16,614				52,834				43,046				59	%			-19	%
Net Income of the period attributable to parent company			20,518				10,396				16,604				52,833				43,039				60	%			-19	%
Net income of the period attributable to non-controlling interests			1				21				10				1				7				-52	%			900	%
Other Comprehensive Income			134				2,440				-2,497				2,286				-5,559				-202	%			-
Foreign currency translation differences in financial statements conversion			-376				-208				144				-1,493				-719				-169	%			-138	%
Profits or losses from financial assets measured at fair value through other comprehensive income (FVOCI) (IFRS 9(4.1.2)(a)			510				2,648				-2,641				3,779				-4,840				-				-
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD			20,653				12,857				14,117				55,120				37,487				10	%			-32	%
Total Comprehensive Income attributable to parent Company			20,652				12,836				14,107				55,119				37,480				10	%			-32	%
Total Comprehensive Income attributable to non-controlling interests			1				21				10				1				7				-52	%			900	%

 

23

 

 

4Q22 Earnings Release

 

INCOME STATEMENT		Macro Consolidated								Change
In MILLION $ (Measuring Unit Current at EOP)		FY2021				FY2022				YoY
Interest Income			439,127				612,465				39	%
Interest Expense			183,872				307,140				67	%
Net Interest Income			255,255				305,325				20	%
Fee income			72,042				75,403				5	%
Fee expense			6,878				7,414				8	%
Net Fee Income			65,164				67,989				4	%
Subtotal (Net Interest Income + Net Fee Income)			320,419				373,314				17	%
Net Income from financial instruments at Fair Value Through Profit & Loss			38,577				47,847				24	%
Result from assets at amortised cost			475				170				-64	%
Difference in quoted prices of gold and foreign currency			9,053				62,274				588	%
Other operating income			15,260				21,177				39	%
Provision for loan losses			4,783				6,558				37	%
Net Operating Income			379,001				498,224				31	%
Personnel expenses			76,907				77,638				1	%
Administrative expenses			39,138				39,156				0	%
Depreciation and impairment of assets			13,880				15,249				10	%
Other operating expense			66,691				74,994				12	%
Operating Income			182,385				291,187				60	%
Income from associates and joint ventures			170				-114				-167	%
Result from net monetary position			-126,482				-228,573				81	%
Net Income before income tax on cont. operations			56,073				62,500				11	%
Income tax on continuing operations			3,239				19,454				-28	%
Net Income from continuing operations			52,834				43,046				-19	%
Net Income for the period			52,834				43,046				-19	%
Net Income of the period attributable to parent company			52,833				43,039				-19	%
Net income of the period attributable to non-controlling interests			1				7				600	%
Other Comprehensive Income			2,286				-5,559				-
Foreign currency translation differences in financial statements conversion			-1,493				-719				-
Profits or losses from financial assets measured at fair value through other comprehensive income (FVOCI) (IFRS 9(4.1.2)(a)			3,779				-4,840				-
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD			55,120				37,487				-32	%
Total Comprehensive Income attributable to parent Company			55,119				37,480				-32	%
Total Comprehensive Income attributable to non-controlling interests			1				7				600	%

 

24

 

 

4Q22 Earnings Release

 

QUARTERLY ANNUALIZED RATIOS		MACRO Consolidated
		4Q21				1Q22				2Q22				3Q22				4Q22
Profitability & performance
Net interest margin			21.2	%			22.8	%			24.7	%			28.1	%			32.7	%
Net interest margin adjusted (exc. FX)			20.3	%			21.2	%			22.5	%			22.5	%			23.9	%
Net fee income ratio			12.6	%			13.0	%			11.7	%			7.2	%			8.9	%
Efficiency ratio			37.4	%			29.6	%			32.7	%			25.8	%			27.2	%
Net fee income as % of A&G Expenses			33.7	%			44.0	%			35.7	%			27.9	%			32.7	%
Return on average assets			4.4	%			2.2	%			1.3	%			2.2	%			3.3	%
Return on average equity			18.5	%			9.1	%			5.1	%			8.8	%			16.9	%
Liquidity
Loans as a percentage of total deposits			59.8	%			55.2	%			52.4	%			45.2	%			46.2	%
Liquid assets as a percentage of total deposits			90.0	%			93.0	%			92.0	%			94.0	%			95.0	%
Capital
Total equity as a percentage of total assets			23.9	%			24.8	%			24.7	%			24.1	%			24.5	%
Regulatory capital as % of APR			36.1	%			38.5	%			40.5	%			40.4	%			39.9	%
Asset Quality
Allowances over total loans			2.8	%			2.8	%			2.1	%			2.0	%			2.0	%
Non-performing financing as a percentage of total financing			1.3	%			1.7	%			1.3	%			1.3	%			1.3	%
Coverage ratio w/allowances			209.6	%			163.2	%			159.7	%			153.1	%			151.7	%
Cost of Risk			2.3	%			0.8	%			0.7	%			1.1	%			1.8	%

 

ACCUMULATED ANNUALIZED RATIOS		MACRO Consolidated
		4Q21				1Q22				2Q22				3Q22				4Q22
Profitability & performance
Net interest margin			19.1	%			22.8	%			23.8	%			25.2	%			27.1	%
Net interest margin adjusted (exc. FX)			18.4	%			21.2	%			21.9	%			22.1	%			22.5	%
Net fee income ratio			12.5	%			13.0	%			12.3	%			10.3	%			10.0	%
Efficiency ratio			37.5	%			29.6	%			31.2	%			29.1	%			28.6	%
Net fee income as % of A&G Expenses			33.3	%			44.0	%			39.5	%			35.5	%			34.8	%
Return on average assets			2.8	%			2.2	%			1.7	%			1.9	%			2.3	%
Return on average equity			12.3	%			9.1	%			7.1	%			7.7	%			9.7	%
Liquidity
Loans as a percentage of total deposits			59.8	%			55.2	%			52.4	%			45.2	%			46.2	%
Liquid assets as a percentage of total deposits			90.0	%			93.0	%			92.0	%			94.0	%			95.0	%
Capital
Total equity as a percentage of total assets			23.9	%			24.8	%			24.7	%			24.1	%			24.5	%
Regulatory capital as % of APR			36.1	%			38.5	%			40.5	%			40.4	%			39.9	%
Asset Quality
Allowances over total loans			2.8	%			2.8	%			2.1	%			2.0	%			2.0	%
Non-performing financing as a percentage of total financing			1.3	%			1.7	%			1.3	%			1.3	%			1.3	%
Coverage ratio w/allowances			209.6	%			163.2	%			159.7	%			153.1	%			151.7	%
Cost of Risk			0.7	%			0.8	%			0.8	%			0.9	%			1.1	%

 

25

 

 

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: February 23, 2023

 

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

 

 

 

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