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SECURITIES AND EXCHANGE COMMISSION
o | Registration statement pursuant to Section 12(b) or 12(g) of the Securities Exchange Act of 1934 |
þ | Annual report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 |
for the fiscal year ended December 31, 2009 |
o | Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 |
for the transition period from to |
o | Shell Company Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 |
Date of the event requiring this shell company report. |
(Translation of registrant’s name into English)
(Jurisdiction of incorporation or organization)
(Address of registrant’s principal executive offices)
Financial and Investor Relations Manager
Banco Macro S.A.
401 Sarmiento, 4th Floor
Buenos Aires—C1041AAI, Argentina
Telephone: (+54-11-5222-6730)
Facsimile: (+54-11-5222-7826)
(Name, telephone, e-mail and/or facsimile member and address of company contact person)
Securities registered or to be registered pursuant to Section 12(b) of the Act:
Title of Each Class | Name of Each Exchange On Which Registered | |
American Depositary Shares | New York Stock Exchange | |
Class B ordinary shares, par value Ps. 1.00 per share | New York Stock Exchange(*) | |
9.75% Fixed/Floating Rate Non-Cumulative Junior | ||
Subordinated Bonds Due 2036 | ||
8.50% Notes Due 2017 | ||
10.750% Argentine Peso-Linked Notes Due 2012 |
(*) | Ordinary shares of Banco Macro S.A. are not listed for trading but only in connection with the registration of American Depositary Shares which are evidenced by American Depositary Receipts. |
583,249,498 Class B ordinary shares, par value Ps. 1.00 per share
Large accelerated filerþ | Accelerated filero | Non-accelerated filero |
U.S. GAAPo | International Financial Reporting | Otherþ | ||
Standards as issued by the International | ||||
Accounting Standards Boardo |
Hugo N. L. Bruzone Bruchou, Fernández Madero & Lombardi Ing. Butty 275, 12th Floor C1001AFA — Buenos Aires, Argentina | Andrés de la Cruz Cleary Gottlieb Steen & Hamilton LLP One Liberty Plaza New York, New York 10006-1470 |
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Exhibit 1.1 | ||||||||
Exhibit 12.1 | ||||||||
Exhibit 12.2 | ||||||||
Exhibit 13.1 | ||||||||
Exhibit 13.2 |
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• | Banco del Tucumán S.A. (“Banco del Tucumán”) | ||
• | Macro Bank Limited (an entity organized under the laws of Bahamas) | ||
• | Macro Securities S.A. Sociedad de Bolsa | ||
• | Sud Inversiones & Análisis S.A. | ||
• | Macro Fondos S.G.F.C.I.S.A. |
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• | changes in general economic, business, political, legal, social or other conditions in Argentina and worldwide; |
• | effects of the global financial markets and economic crisis; |
• | 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 and other delinquencies; |
• | increase in the provisions for loan losses; |
• | fluctuations and declines in the value of Argentine public debt; |
• | decrease in deposits, customers loss and revenue losses; |
• | competition in banking, financial services and related industries and the loss of market share; |
• | cost and availability of funding; |
• | deterioration in regional business and economic conditions; |
• | technological changes, changes in consumer spending and saving habits, and inability to implement new technologies; |
• | fluctuations and declines in the exchange rate of the peso; and |
• | the risk factors discussed under “Item 3.D — Risk factors”. |
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Item 1. | Identity of Directors, Senior Management and Advisers |
Item 2. | Offer Statistics and Expected Timetable |
Item 3. | Key Information |
Year Ended December 31, | ||||||||||||||||||||
2005 | 2006 (1)(2) | 2007 (1) | 2008 (1) | 2009 | ||||||||||||||||
(in thousands of pesos, except for number of shares, | ||||||||||||||||||||
net income per share and dividends per share) | ||||||||||||||||||||
Consolidated Income Statement | ||||||||||||||||||||
Central Bank Rules: | ||||||||||||||||||||
Financial income | 749,583 | 1,155,207 | 1,890,422 | 3,029,860 | 3,860,452 | |||||||||||||||
Financial expense | (302,909 | ) | (394,897 | ) | (805,265 | ) | (1,342,062 | ) | (1,511,607 | ) | ||||||||||
Gross intermediation margin | 446,674 | 760,310 | 1,085,157 | 1,687,798 | 2,348,845 | |||||||||||||||
Provision for loan losses | (70,309 | ) | (59,773 | ) | (94,717 | ) | (297,606 | ) | (197,512 | ) | ||||||||||
Service charge income | 302,758 | 452,232 | 662,326 | 891,700 | 1,050,275 | |||||||||||||||
Service charge expense | (59,510 | ) | (93,323 | ) | (150,282 | ) | (172,401 | ) | (226,599 | ) | ||||||||||
Administrative expenses | (462,497 | ) | (679,874 | ) | (997,466 | ) | (1,270,002 | ) | (1,522,420 | ) | ||||||||||
Other income | 218,884 | 234,807 | 183,525 | 188,450 | 121,977 | |||||||||||||||
Other expense | (79,212 | ) | (109,900 | ) | (98,915 | ) | (103,328 | ) | (158,294 | ) | ||||||||||
Minority Interest in subsidiaries | — | (3,178 | ) | (2,083 | ) | (3,354 | ) | (5,092 | ) | |||||||||||
Income Tax | (34,042 | ) | (76,961 | ) | (92,345 | ) | (261,207 | ) | (659,250 | ) | ||||||||||
Net income | 262,746 | 424,340 | 495,200 | 660,050 | 751,930 | |||||||||||||||
Net income per share (3) | 0.43 | 0.64 | 0.72 | 1.00 | 1.26 | |||||||||||||||
Dividends per share (6) | 0.10 | 0.15 | 0.25 | 0.25 | 0.35 | |||||||||||||||
Dividends per share in US$ (6) | 0.04 | 0.05 | 0.08 | 0.07 | 0.09 | |||||||||||||||
Number of shares outstanding (in thousands) | 608,943 | 683,943 | 683,979 | 608,437 | 594,485 | |||||||||||||||
U.S. GAAP: (4) | ||||||||||||||||||||
Net income before extraordinary items | 463,795 | 360,879 | 385,537 | 631,171 | 993,769 | |||||||||||||||
Extraordinary Gain | — | 41,705 | — | — | — | |||||||||||||||
Less: Net income attributable to the non-controlling interest | — | (2,920 | ) | (1,497 | ) | (2,928 | ) | (7,484 | ) | |||||||||||
Net income attributable to the controlling interest | 463,795 | 399,664 | 384,040 | 628,243 | 986,285 | |||||||||||||||
Net income per share before extraordinary item(s) | 0.76 | 0.54 | 0.56 | 0.95 | 1.66 | |||||||||||||||
Net income per share for extraordinary gain | — | 0.06 | — | — | — | |||||||||||||||
Total net income per share (5) | 0.76 | 0.60 | 0.56 | 0.95 | 1.66 | |||||||||||||||
Weighted average number of shares outstanding (in thousands) | 608,943 | 666,478 | 683,952 | 658,124 | 595,634 |
(1) | See note 4.2 to our audited consolidated financial statements for the year ended December 31, 2009. | |
(2) | The results of operations of Banco del Tucumán and Nuevo Banco Bisel are consolidated with Banco Macro from May 5 and August 11, 2006, respectively (in the case of Nuevo Banco Bisel through August 18, 2009, date on which it merged with and into us). | |
(3) | Net income in accordance with Central Bank Rules divided by weighted average number of outstanding shares. | |
(4) | See note 35 to our audited consolidated financial statements for the year ended December 31, 2009 for a summary of significant differences between Central Bank Rules and U.S. GAAP. | |
(5) | Net income in accordance with U.S. GAAP divided by weighted average number of shares outstanding. | |
(6) | Includes cash dividends approved by the shareholders’ meetings for each of such fiscal years. |
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As of December 31, | ||||||||||||||||||||
(in thousands of pesos) | ||||||||||||||||||||
2005 | 2006 (1)(2) | 2007 (1) | 2008 (1) | 2009 | ||||||||||||||||
Consolidated Balance Sheet | ||||||||||||||||||||
Central Bank Rules: | ||||||||||||||||||||
Assets | ||||||||||||||||||||
Cash and due from banks and correspondents | 1,189,129 | 2,626,908 | 3,117,426 | 3,523,897 | 5,016,192 | |||||||||||||||
Government and private securities | 2,991,764 | 3,222,955 | 3,950,725 | 4,779,299 | 6,981,144 | |||||||||||||||
Loans: | ||||||||||||||||||||
to the non-financial government sector | 645,342 | 774,273 | 732,481 | 744,507 | 206,484 | |||||||||||||||
to the financial sector | 80,511 | 436,930 | 161,702 | 80,423 | 90,916 | |||||||||||||||
to the non-financial private sector and foreign residents | 2,948,799 | 5,524,483 | 9,335,656 | 10,893,376 | 11,247,452 | |||||||||||||||
Allowances for loan losses | (247,532 | ) | (208,581 | ) | (220,422 | ) | (438,348 | ) | (448,045 | ) | ||||||||||
Other assets | 1,879,809 | 2,106,186 | 2,645,978 | 2,847,118 | 3,765,095 | |||||||||||||||
Total assets | 9,487,822 | 14,483,154 | 19,723,546 | 22,430,272 | 26,859,238 | |||||||||||||||
Average assets | 9,357,401 | 11,796,936 | 17,691,769 | 21,865,952 | 23,964,067 | |||||||||||||||
Liabilities and shareholders’ equity | ||||||||||||||||||||
Deposits: | ||||||||||||||||||||
from the non-financial government sector | 822,687 | 1,295,630 | 1,774,121 | 3,937,961 | 3,613,924 | |||||||||||||||
from the financial sector | 5,208 | 5,078 | 13,310 | 22,438 | 14,052 | |||||||||||||||
from the non-financial private sector and foreign residents | 5,737,431 | 8,770,309 | 11,803,718 | 11,867,958 | 14,964,890 | |||||||||||||||
Other liabilities from financial intermediation and other liabilities | 1,241,793 | �� | 1,492,949 | 2,813,065 | 3,157,646 | 4,222,152 | ||||||||||||||
Provisions | 178,150 | 77,738 | 101,333 | 83,004 | 88,275 | |||||||||||||||
Subordinated corporate bonds | 12,047 | 507,844 | 490,695 | 521,681 | 572,473 | |||||||||||||||
Items pending allocation | 854 | 2,052 | 1,644 | 2,105 | 3,987 | |||||||||||||||
Minority interest in subsidiaries | — | 11,143 | 12,640 | 15,568 | 20,684 | |||||||||||||||
Total liabilities | 7,998,170 | 12,162,743 | 17,010,526 | 19,608,361 | 23,500,437 | |||||||||||||||
Shareholders’ equity | 1,489,652 | 2,320,411 | 2,713,020 | 2,821,911 | 3,358,801 | |||||||||||||||
Average shareholders’ equity | 1,333,163 | 1,920,559 | 2,461,668 | 2,778,572 | 3,055,736 | |||||||||||||||
U.S. GAAP: (3) | ||||||||||||||||||||
Shareholders’ equity attributable to the controlling interest | 1,191,692 | 1,956,242 | 2,222,361 | 2,221,199 | 3,269,875 | |||||||||||||||
Non-controlling interests | — | 11,143 | 12,640 | 15,568 | 23,052 | |||||||||||||||
Shareholders’ equity | 1,191,692 | 1,967,385 | 2,235,001 | 2,236,767 | 3,292,927 |
(1) | See note 4.2 to our audited consolidated financial statements for the year ended December 31, 2009. | |
(2) | The results of operations of Banco del Tucumán and Nuevo Banco Bisel are consolidated with Banco Macro from May 5 and August 11, 2006, respectively (in the case of Nuevo Banco Bisel through August 18, 2009, date on which it merged with and into us). | |
(3) | See note 35 to our audited consolidated financial statements for the year ended December 31, 2009 for a summary of significant differences between Central Bank Rules and U.S. GAAP. |
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As of and for the year ended December 31, | ||||||||||||||||||||
2005 | 2006 (1)(2) | 2007 (1) | 2008 (1) | 2009 | ||||||||||||||||
Selected consolidated ratios: | ||||||||||||||||||||
Profitability and performance | ||||||||||||||||||||
Net interest margin (%) (3) | 5.23 | 7.11 | 6.85 | 7.93 | 12.56 | |||||||||||||||
Fee income ratio (%) (4) | 40.40 | 37.30 | 37.90 | 34.57 | 30.90 | |||||||||||||||
Efficiency ratio (%) (5) | 59.11 | 56.07 | 57.08 | 49.23 | 44.79 | |||||||||||||||
Ratio of earnings to fixed charges (excluding interest on deposits) (6) | 3.01 | x | 6.76 | x | 4.28 | x | 6.00 | x | 10.65 | x | ||||||||||
Ratio of earnings to fixed charges (including interest on deposits) (7) | 2.14 | x | 2.49 | x | 1.88 | x | 1.80 | x | 2.06 | x | ||||||||||
Fee income as a percentage of administrative expense (%) | 68.34 | 66.52 | 66.40 | 70.21 | 68.99 | |||||||||||||||
Return on average equity (%) | 19.71 | 22.09 | 20.12 | 23.76 | 24.61 | |||||||||||||||
Return on average assets (%) | 2.81 | 3.60 | 2.80 | 3.02 | 3.14 | |||||||||||||||
Liquidity | ||||||||||||||||||||
Loans as a percentage of total deposits (%) | 55.97 | 66.88 | 75.27 | 74.03 | 62.09 | |||||||||||||||
Liquid assets as a percentage of total deposits (%) (8) | 58.64 | 61.92 | 51.25 | 48.80 | 53.70 | |||||||||||||||
Capital | ||||||||||||||||||||
Total equity as a percentage of total assets (%) | 15.70 | 16.02 | 13.76 | 12.58 | 12.51 | |||||||||||||||
Regulatory capital as a percentage of risk-weighted assets (%) | 31.03 | 31.31 | 26.81 | 22.95 | 27.38 | |||||||||||||||
Asset Quality | ||||||||||||||||||||
Non-performing loans as a percentage of total loans (%) (9) | 5.34 | 2.01 | 1.55 | 2.64 | 3.25 | |||||||||||||||
Allowances as a percentage of total loans | 6.74 | 3.10 | 2.15 | 3.74 | 3.88 | |||||||||||||||
Allowances as a percentage of non-performing loans (%) (9) | 126.20 | 154.25 | 138.77 | 141.81 | 119.45 | |||||||||||||||
Differences due to court orders (Amparos)as a percentage of equity (%) | 2.90 | 3.22 | 3.72 | 1.26 | 1.50 | |||||||||||||||
Operations | ||||||||||||||||||||
Number of branches | 254 | 433 | 427 | 416 | 408 | |||||||||||||||
Number of employees | 5,054 | 7,585 | 7,914 | 7,973 | 7,863 |
(1) | See note 4.2 to our audited consolidated financial statement for the year ended December 31, 2009. | |
(2) | The results of operations of Banco del Tucumán and Nuevo Banco Bisel are consolidated with Banco Macro from May 5 and August 11, 2006, respectively (in the case of Nuevo Banco Bisel through August 18, 2009, date on which it merged with and into us). | |
(3) | Net interest income divided by average interest earning assets. | |
(4) | Service charge income divided by the sum of gross intermediation margin and service charge income. | |
(5) | Administrative expenses divided by the sum of gross intermediation margin and service charge income. | |
(6) | For the purpose of computing the ratio of earnings to fixed charges excluding interest on deposits, earnings consist of income before income taxes plus fixed charges; fixed charges excluding interest on deposits consist of gross interest expense minus interest on deposits. | |
(7) | For the purpose of computing the ratio of earnings to fixed charges including interest on deposits, earnings consist of income before income taxes plus fixed charges; fixed charges including interest on deposits is equal to gross interest expense. | |
(8) | Liquid assets include cash, LEBACs and NOBACs, interbank loans and overnight loans to highly rated companies. | |
(9) | Non-performing loans include all loans to borrowers classified as “3-troubled/medium risk”, “4-with high risk of insolvency/high risk”, “5-irrecoverable” and “6-irrecoverable According to Central Bank’s rules” under the Central Bank loan classification system. |
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• | incomplete normalization of the financial systems of the main developed economies and recent events in the European financial markets; | |
• | abrupt changes in the monetary and fiscal policies of the main economies worldwide; | |
• | reversal of capital flows due to domestic and international uncertainty; | |
• | uncertainty with respect to debt restructuring, the payment capacity of the Argentine public sector and the possibilities of procuring international financing; | |
• | increase in inflation affecting competitiveness and economic growth; | |
• | poor development of the credit market; | |
• | low level of investment; | |
• | evolution of the exchange rate; | |
• | increase in public expenditure affecting the economy and the fiscal accounts; | |
• | possible reversal in the trade balance; | |
• | significant decrease in prices of main commodities exported by Argentina; | |
• | wage and price controls; and | |
• | political and social tensions. |
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• | In February 2007, ICSID tribunals issued a judgment against Argentina in a US$208 million suit initiated by Siemens for indemnity in the failure to complete a contract in 2001 concerning personal identification documents. The revision and annulment proceedings in this case were discontinued as a consequence of a settlement reached between the parties. Consequently, as of the date of this annual report, this procedure is concluded. |
• | In May 2007, ICSID tribunals ordered Argentina to pay US$106 million to Enron Corporation and Ponderosa Assets LP, shareholders of the local gas distributor Transportadora de Gas del Sur, in connection with tariff adjustments. This dispute is currently pending before an ICSID Tribunal/Annulment Panel. |
• | In July 2007, ICSID tribunals ordered Argentina to pay US$57.4 million to LG&E Energy Corp., LG&E Capital Corp. and LG&E International Inc., in connection with the decrease in value of their shares in Distribuidora de Gas del Centro, Distribuidora de Gas Cuyana and Gas Natural BAN. In this case, the tribunal recognized the state of emergency in place that justified the measures taken by the government. In addition, the annulment proceeding in this case, pursued by both parties, has been suspended. |
• | In August 2007, ICSID tribunals ordered Argentina to pay US$105 million to Compañía de Aguas del Aconquija S.A. and Vivendi Universal in connection with the termination of the water concession agreement executed with such company in the province of Tucumán. This dispute is currently pending before an ICSID Tribunal/Annulment Panel. |
• | In September 2007, ICSID tribunals ordered Argentina to pay US$172 million to Sempra Energy International due to the depreciation of its shareholdings in Sodigas Pampeana and Sodigas Sur (shareholders, in turn, of the local concessionaries of the gas distribution service in Argentina, Camuzzi Gas Pampeana and Camuzzi Gas del Sur), as a consequence of the economic measures adopted by the Argentine government in 2002. This dispute is currently pending before an ICSID Tribunal/Annulment Panel. |
• | In September 2008, and although it recognized the state of emergency in place that justified certain extraordinary measures by the Argentine government, ICSID tribunals ordered Argentina to pay US$2.8 million to Continental Casualty Company. This dispute is currently pending before an ICSID Tribunal/Annulment Panel. |
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• | unforeseen difficulties in integrating operations and systems; |
• | problems assimilating or retaining the employees of acquired businesses; | ||
• | challenges retaining customers of acquired businesses; |
• | unexpected liabilities or contingencies relating to the acquired businesses; and |
• | the possibility that management may be distracted from day-to-day business concerns by integration activities and related problem solving. |
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Item 4. | Information on the Bank |
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• | Ps.26,859.2 million (US$7,074.4 million) in total assets; |
• | Ps.11,247.5 million (US$2,962.4 million) in loans to the non-financial private sector; |
• | Ps.18,592.9 million (US$4,897.1 million) in total deposits; |
• | approximately 2,544,000 retail customers and 71,124 corporate customers that provide us with approximately 2.6 million clients; and |
• | approximately 1,132,000 employee payroll accounts for private sector customers and provincial governments. |
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• | Strong financial position and consistent profitability. We believe we have emerged from the economic crisis as one of the strongest banks in Argentina, as measured by profitability and balance sheet strength. |
• | As of December 31, 2009, we have achieved profitability for the last 32 consecutive quarters, being the only bank in Argentina to do so, with a return on average equity of 19.7%, 22.1%, 20.1%, 23.8% and 24.6% for 2005, 2006, 2007, 2008 and 2009, compared to 7.5%, 14.8%, 11.2%, 13.7% and 19.6% respectively, for the Argentine banking system as a whole. |
• | Our shareholders’ equity as of December 31, 2009 and 2008, as calculated under Central Bank Rules, was Ps. 3,358.8 million and Ps. 2,821.9 million, respectively, and our shareholders’ equity under U.S. GAAP at December 31, 2009 and 2008 was Ps. 3,293.6 and Ps. 2,236.8 million, respectively. |
• | Strong presence in fast-growing target customer market. We have achieved a leading position with low- and middle-income individuals and among small and medium-sized businesses, generally located outside of the City of Buenos Aires, which have been relatively underserved by the banking system. As of December 31, 2009, loans for less than Ps.20,000 accounted for 40% of our total private sector loans. Based on our experience, this target market offers significant growth opportunities and a stable base of depositors. |
• | High exposure to export-led growth. Given the geographical location of the customers we target, we have acquired banks with a large number of branches outside of the City of Buenos Aires with the aim of completing our national coverage. Therefore, we are currently the leading bank, based on the number of branches, in the Argentine provinces of Salta, Jujuy, Tucumán and Misiones and one of the leading banks in Córdoba, Santa Fe, Río Negro and Tierra del Fuego. Most of these provinces engage in economic activities primarily concentrated in areas such as agriculture, mining, cargo transportation, edible oils, ranching and tourism, which have been benefiting from the export-driven growth in the Argentine economy as a result of the devaluation of the peso. |
• | Largest private-sector branch network in Argentina. With 408 branches, we have the most extensive branch network among private-sector banks in Argentina. We consider our branch network to be our key distribution channel for marketing our products and services to our entire customer base with a personalized approach. In line with our strategy, approximately 94% of these branches are located outside of the City of Buenos Aires, whereas 81% of the total branches for the Argentine financial system as a whole are located outside this area, which we believe better positions us to focus on our target market. |
• | Loyal customer base. We have a loyal customer base, as evidenced in part by the quick recovery of our deposit base after the crisis. We believe that our customers are loyal to us due to our presence in traditionally underserved markets and to our Plan Sueldo payroll services. We have benefited from Argentine regulations that require all employees to maintain Plan Sueldo accounts for the direct deposit of their wages. In addition, we emphasize face-to-face relationships with our customers and offer them personalized advice. |
• | Exclusive financial agent for four Argentine provinces. We perform financial agency services for the governments of the provinces of Salta, Jujuy, Misiones and Tucumán in northern Argentina. As a result, each provincial government’s bank accounts are held in our bank and we provide all their employees with Plan Sueldo accounts, giving us access to substantial low cost funding and a large number of loyal customers. |
• | Strong and experienced management team and committed shareholders. We are led by a committed group of shareholders who have transformed our bank from a small wholesale bank to one of the strongest and largest banks in Argentina. Jorge Horacio Brito and Delfín Jorge Ezequiel Carballo have active senior executive roles in our management and each possesses more than 20 years of experience in the banking industry. |
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• | Focus on underserved markets with strong growth potential. We intend to continue focusing on both low- and middle-income individuals and small and medium-sized businesses, most of which have traditionally been underserved by the Argentine banking system and are generally located outside of the City of Buenos Aires, where competition is relatively weaker and where we have achieved a leading presence. We believe that these markets offer attractive opportunities given the low penetration of banking services and limited competition. We believe the provinces outside of the City of Buenos Aires that we serve are likely to grow faster than the Argentine economy as a whole because their export-driven economies have benefited from the devaluation of the peso and higher prices for agricultural products and commodities. |
• | Further expand our customer base. We intend to continue growing our customer base, which is essential to increasing interest and fee-based revenues. To attract new customers we intend to: |
• | Utilize our extensive branch network. We intend to utilize our extensive branch network, which we consider our key distribution channel, to market our products and services to our entire customer base. We utilize a personalized approach to attract new customers by providing convenient and personalized banking services close to their homes and facilities. |
• | Offer medium- and long-term credit. We intend to capitalize on the increased demand for long-term credit that we believe will accompany the expected economic growth in Argentina. We intend to use our strong liquidity and our capital base to offer a more readily available range of medium- and long-term credit products than our competitors. |
• | Focus on corporate banking customers, strengthening financing to the small business segment. |
• | Expand our share in the agricultural and livestock industry and those export-related activities, introducing a product specially designed for this sector (Campo XXI). |
• | Expand Plan Sueldo payroll services. We will continue to actively market our Plan Sueldo payroll services, emphasizing the benefits of our extensive network for companies with nationwide or regional needs. |
• | Expand our financial agency services to new provinces. We intend to take advantage of our experience as a financial agent to provincial governments in Argentina to expand these services into new provinces. |
• | Offer personalized service. We offer our clients a menu of products and personalized, face-to-face advice to help them select the banking services that best respond to their needs. |
• | Focus on efficiency and cost control. We intend to increase our efficiency creating new economies of scale, and reducing costs in connection with the integration of merged entities (Banco Macro, Nuevo Banco Suquía and Nuevo Banco Bisel). We have been working on upgrading our information systems and other technology in order to further reduce our operating costs and to support larger transaction volumes nationally. We have completed the integration of Nuevo Banco Suquía during the second half of 2007 and the integration of Nuevo Banco Bisel during the second half of 2009. |
• | Extend existing corporate relationships to their distributors and suppliers. We have established relationships with major corporations in Argentina and will focus our marketing efforts on providing services to their distributors, suppliers, customers and employees, including providing working capital financing and Plan Sueldo payroll services. |
• | Increase cross-selling. We plan to increase cross-selling of products and services to our existing clients. Since almost all of our clients have a checking and savings account, we have a significant opportunity to expand our relationships with them through other products such as credit cards, loans and insurance. For example, strong cross-selling opportunities lie with our Plan Sueldo clients, of whom only 21.5% currently have personal loans from us. |
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Approximate number | ||||
of retail accounts | ||||
Product | (as of December 31, 2009) | |||
Savings | ||||
Total savings accounts | 1,903,566 | |||
Plan Sueldo(private sector) | 559,051 | |||
Plan Sueldo(public sector) | 572,675 | |||
Retirees | 400,114 | |||
Open market | 371,726 | |||
Checking | ||||
Checking accounts | 174,046 | |||
Electronic account access | ||||
Debit cards | 1,420,971 |
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Loans to retail customers (in pesos except where noted) | ||||||||||||||||||||||||||||
(as of December 31, 2009) | ||||||||||||||||||||||||||||
Credit | ||||||||||||||||||||||||||||
Personal | Mortgage | Pledged | card | |||||||||||||||||||||||||
loans | Documents (1) | loans | Overdrafts | loans (2) | loans | Others | ||||||||||||||||||||||
Percentage of gross retail private sector loan portfolio | 64.7 | % | 6.3 | % | 6.3 | % | 3.0 | % | 2.4 | % | 14.3 | % | 2.9 | % | ||||||||||||||
Total customers with outstanding loans | 513,374 | 9,306 | 7,475 | 211,932 | 2,475 | 470,804 | 5,415 | |||||||||||||||||||||
Average gross loan amount | 5,683 | 4,940 | 51,874 | 677 | 57,470 | 1,722 | 29,398 |
(1) | Factoring, check cashing advances and loans with promissory notes. | |
(2) | Primarily secured car loans. |
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Loans to companies in excess of | ||||||||
Ps.20,000 (as of December 31, 2009) | ||||||||
Percentage of | ||||||||
(in millions of | corporate loan | |||||||
pesos) | portfolio | |||||||
Overdrafts | 1,273.7 | 25.6 | % | |||||
Documents (1) | 1,030.7 | 20.7 | % | |||||
Pledged loans (2) | 121.9 | 2.4 | % | |||||
Mortgage loans | 371.7 | 7.5 | % | |||||
Other (3) | 2,133.8 | 42.7 | % | |||||
Corporate credit cards | 53.1 | 1.1 | % | |||||
Total | 4,984.9 | 100.0 | % | |||||
(1) | Factoring, check cashing advances and promissory notes. | |
(2) | Primarily securing cargo transportation equipment. | |
(3) | Mostly structured loans (medium- and long-term). |
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As of December 31, 2009 | ||||||||||||
Market Share of | ||||||||||||
% of | total branches in | |||||||||||
Province | Branches | Total | each province | |||||||||
City of Buenos Aires | 24 | 5.9 | % | 3.1 | % | |||||||
Buenos Aires (rest) | 52 | 12.7 | % | 4.1 | % | |||||||
Catamarca | 1 | 0.2 | % | 4.5 | % | |||||||
Chaco | 2 | 0.5 | % | 3.3 | % | |||||||
Chubut | 4 | 1.0 | % | 4.4 | % | |||||||
Córdoba | 62 | 15.2 | % | 15.4 | % | |||||||
Corrientes | 3 | 0.7 | % | 5.0 | % | |||||||
Entre Ríos | 6 | 1.5 | % | 5.0 | % | |||||||
Formosa | — | — | — | |||||||||
Jujuy | 15 | 3.7 | % | 48.4 | % | |||||||
La Pampa | 2 | 0.5 | % | 1.9 | % | |||||||
La Rioja | 2 | 0.5 | % | 7.7 | % | |||||||
Mendoza | 13 | 3.2 | % | 9.0 | % | |||||||
Misiones | 35 | 8.6 | % | 54.7 | % | |||||||
Neuquén | 4 | 1.0 | % | 6.3 | % | |||||||
Río Negro | 7 | 1.7 | % | 10.6 | % | |||||||
Salta | 25 | 6.1 | % | 48.1 | % | |||||||
San Juan | 1 | 0.2 | % | 2.9 | % | |||||||
San Luis | 1 | 0.2 | % | 2.3 | % | |||||||
Santa Cruz | 2 | 0.5 | % | 5.3 | % | |||||||
Santa Fe | 116 | 28.4 | % | 26.9 | % | |||||||
Santiago del Estero | 1 | 0.2 | % | 2.0 | % | |||||||
Tierra del Fuego | 2 | 0.5 | % | 11.8 | % | |||||||
Tucumán | 28 | 6.9 | % | 44.4 | % | |||||||
TOTAL | 408 | 100.0 | % | 10.1 | % | |||||||
• | we seek to maintain a high quality portfolio that is diversified among customers; |
• | decisions regarding loan amounts are made following conservative parameters based upon the customer’s capital, cash flow and profitability, in the case of companies, and the customer’s income and asset base, in the case of individuals; |
• | the term of the loans offered to meet the customer’s needs must be appropriate for the purpose of the loan and the customer’s ability to repay the loan; |
• | transactions must be appropriately secured according to the loan’s term and the level of risk involved, and in the case of lending to small and medium-sized companies, we request personal guarantees from the company’s owners; and |
• | we continuously monitor credit portfolios and customer payment performance. |
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2005 | 2006 | 2007 | 2008 | 2009 | ||||||||||||||||
(millions of pesos) | ||||||||||||||||||||
Total Assets (1) | 218,453 | 244,070 | 285,719 | 333,723 | 368,091 | |||||||||||||||
Total Deposits (1) | 127,382 | 155,345 | 191,653 | 229,090 | 253,985 | |||||||||||||||
Gross Private Sector Loans (1) | 47,972 | 66,896 | 93,091 | 123,964 | 137,559 |
(1) | Twelve-month average. |
2005 | 2006 | 2007 | 2008 | 2009 | ||||||||||||||||
Net income (in millions of pesos) | 1,932 | 4,473 | 3,961 | 5,357 | 8,103 | |||||||||||||||
Return on average equity | 7.5 | % | 14.8 | % | 11.2 | % | 13.7 | % | 18.0 | % | ||||||||||
Return on average assets | 0.9 | % | 1.8 | % | 1.4 | % | 1.6 | % | 2.2 | % |
2005 | 2006 | 2007 | 2008 | 2009 | ||||||||||||||||
Non-performing Credit Portfolio | 5.2 | % | 3.4 | % | 2.7 | % | 2.7 | % | 3.0 | % | ||||||||||
Non-performing Credit Portfolio — Private Sector | 7.6 | % | 4.5 | % | 3.2 | % | 3.1 | % | 3.5 | % |
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Market Share | ||||||||
(% share of total | ||||||||
private sector loans | ||||||||
Private Sector Loans | Ps. | for the Argentine | ||||||
(As of December 31, 2009) | Million | financial system) | ||||||
1 BANCO DE LA NACION ARGENTINA (1) | 21,223 | 14.6 | % | |||||
2 BANCO SANTANDER RIO S.A. | 13,737 | 9.5 | % | |||||
3 BANCO DE GALICIA Y BUENOS AIRES S.A. | 11,494 | 7.9 | % | |||||
4 BANCO MACRO S.A. (2) | 11,248 | 7.7 | % | |||||
5 BBVA BANCO FRANCES S.A. | 9,903 | 6.8 | % | |||||
6 BANCO DE LA PROVINCIA DE BUENOS AIRES (1) | 9,177 | 6.3 | % | |||||
7 HSBC BANK ARGENTINA S.A. | 6,986 | 4.8 | % | |||||
8 BANCO DE LA CIUDAD DE BUENOS AIRES (1) | 5,832 | 4.0 | % | |||||
9 BANCO CREDICOOP COOPERATIVO LIMITADO | 5,447 | 3.7 | % | |||||
10 CITIBANK N.A. | 5,348 | 3.7 | % | |||||
OTHERS | 44,881 | 30.9 | % | |||||
TOTAL | 145,277 | 100.0 | % | |||||
(1) | Public sector banks. | |
(2) | From our consolidated financial statements. |
Market Share | ||||||||
(% share of equity | ||||||||
Equity | Ps. | for the Argentine | ||||||
(As of December 31, 2009) | Million | financial system) | ||||||
1 BANCO DE LA NACION ARGENTINA (1) | 8,998 | 18.7 | % | |||||
2 BANCO MACRO S.A. (2) | 3,359 | 7.0 | % | |||||
3 BANCO SANTANDER RIO S.A. | 3,084 | 6.4 | % | |||||
4 BBVA BANCO FRANCES S.A. | 2,926 | 6.1 | % | |||||
5 BANCO HIPOTECARIO S.A. | 2,778 | 5.8 | % | |||||
6 BANCO DE GALICIA Y DE BUENOS AIRES S.A. | 2,127 | 4.4 | % | |||||
7 HSBC BANK ARGENTINA S.A. | 1,969 | 4.1 | % | |||||
8 BANCO PATAGONIA S.A. | 1,854 | 3.9 | % | |||||
9 CITIBANK S.A. | 1,814 | 3.8 | % | |||||
10 BANCO DE LA PROVINCIA DE BUENOS AIRES (1) | 1,651 | 3.4 | % | |||||
OTHERS | 17,581 | 36.5 | % | |||||
TOTAL | 48,141 | 100.0 | % | |||||
(1) | Public sector banks. | |
(2) | From our consolidated financial statements. |
Market Share | ||||||||
(% share of total | ||||||||
deposits for the | ||||||||
Total Deposits | Ps. | Argentine | ||||||
(As of December 31, 2009) | Million | financial system) | ||||||
1 BANCO DE LA NACION ARGENTINA (1) | 67,121 | 24.6 | % | |||||
2 BANCO DE LA PROVINCIA DE BUENOS AIRES (1) | 25,198 | 9.2 | % | |||||
3 BANCO SANTANDER RIO S.A. | 19,399 | 7.1 | % | |||||
4 BANCO MACRO (2) | 18,593 | 6.8 | % | |||||
5 BBVA BANCO FRANCES S.A. | 18,374 | 6.7 | % | |||||
6 BANCO DE GALICIA Y DE BUENOS AIRES S.A. | 17,083 | 6.3 | % | |||||
7 HSBC BANK ARGENTINA S.A. | 11,821 | 4.3 | % | |||||
8 BANCO DE LA CIUDAD DE BUENOS AIRES (1) | 11,182 | 4.1 | % | |||||
9 BANCO CREDICOOP COOPERATIVO LIMITADO | 10,915 | 4.0 | % | |||||
10 CITIBANK N.A. | 9,197 | 3.4 | % | |||||
OTHERS | 63,676 | 23.4 | % | |||||
TOTAL | 272,559 | 100.0 | % | |||||
(1) | Public sector banks. | |
(2) | From our consolidated financial statements. |
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Net Income | Ps. | |||
(12 months ended December 31, 2009) | Million | |||
1 BANCO DE LA NACION ARGENTINA S.A. (1) | 1,186 | |||
2 BANCO SANTANDER RIO S.A. | 1,114 | |||
3 BANCO MACRO S.A. (2) | 752 | |||
4 BBVA BANCO FRANCES S.A. | 668 | |||
5 CITIBANK N.A. | 578 | |||
6 BANCO PATAGONIA S.A. | 424 | |||
7 BANCO DE SAN JUAN S.A. | 421 | |||
8 NUEVO BANCO DE SANTA FE SOCIEDAD ANONIMA | 319 | |||
9 HSBC BANK ARGENTINA S.A. | 305 | |||
10 DEUTSCHE BANK S.A. | 262 | |||
OTHERS | 2,074 | |||
TOTAL | 8,103 | |||
As of December 31, 2009 | ||||||||||||||||||||
Banking System | Banco Macro | |||||||||||||||||||
Market Share | ||||||||||||||||||||
(% share of | ||||||||||||||||||||
total of | ||||||||||||||||||||
branches in | ||||||||||||||||||||
% of | % of | each | ||||||||||||||||||
Province | Branches | Total | Branches | Total | province) | |||||||||||||||
CITY OF BUENOS AIRES | 774 | 19.2 | % | 24 | 5.9 | % | 3.1 | % | ||||||||||||
BUENOS AIRES (PROVINCE) | 1,259 | 31.2 | % | 52 | 12.7 | % | 4.1 | % | ||||||||||||
CATAMARCA | 22 | 0.5 | % | 1 | 0.2 | % | 4.5 | % | ||||||||||||
CHACO | 61 | 1.5 | % | 2 | 0.5 | % | 3.3 | % | ||||||||||||
CHUBUT | 90 | 2.2 | % | 4 | 1.0 | % | 4.4 | % | ||||||||||||
CORDOBA | 402 | 10.0 | % | 62 | 15.2 | % | 15.4 | % | ||||||||||||
CORRIENTES | 60 | 1.5 | % | 3 | 0.7 | % | 5.0 | % | ||||||||||||
ENTRE RIOS | 119 | 2.9 | % | 6 | 1.5 | % | 5.0 | % | ||||||||||||
FORMOSA | 18 | 0.4 | % | 0 | 0.0 | % | 0.0 | % | ||||||||||||
JUJUY | 31 | 0.8 | % | 15 | 3.7 | % | 48.4 | % | ||||||||||||
LA PAMPA | 103 | 2.6 | % | 2 | 0.5 | % | 1.9 | % | ||||||||||||
LA RIOJA | 26 | 0.6 | % | 2 | 0.5 | % | 7.7 | % | ||||||||||||
MENDOZA | 145 | 3.6 | % | 13 | 3.2 | % | 9.0 | % | ||||||||||||
MISIONES | 64 | 1.6 | % | 35 | 8.6 | % | 54.7 | % | ||||||||||||
NEUQUÉN | 64 | 1.6 | % | 4 | 1.0 | % | 6.3 | % | ||||||||||||
RIO NEGRO | 66 | 1.6 | % | 7 | 1.7 | % | 10.6 | % | ||||||||||||
SALTA | �� | 52 | 1.3 | % | 25 | 6.1 | % | 48.1 | % | |||||||||||
SAN JUAN | 35 | 0.9 | % | 1 | 0.2 | % | 2.9 | % | ||||||||||||
SAN LUIS | 44 | 1.1 | % | 1 | 0.2 | % | 2.3 | % | ||||||||||||
SANTA CRUZ | 38 | 0.9 | % | 2 | 0.5 | % | 5.3 | % | ||||||||||||
SANTA FE | 431 | 10.7 | % | 116 | 28.4 | % | 26.9 | % | ||||||||||||
SANTIAGO DEL ESTERO | 51 | 1.3 | % | 1 | 0.2 | % | 2.0 | % | ||||||||||||
TIERRA DEL FUEGO | 17 | 0.4 | % | 2 | 0.5 | % | 11.8 | % | ||||||||||||
TUCUMAN | 63 | 1.6 | % | 28 | 6.9 | % | 44.4 | % | ||||||||||||
TOTAL | 4,035 | 100.0 | % | 408 | 100.0 | % | 10.1 | % | ||||||||||||
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Market | ||||||||||||||||||||||||||||||||
Share of | Market | |||||||||||||||||||||||||||||||
Market | Branches | Branches | Share of | % of | ||||||||||||||||||||||||||||
Number of | Total | Share of | in City of | in City of | Branches in | Branches in | Branches in | |||||||||||||||||||||||||
Provinces | Number of | Branches in | Buenos | Buenos | the Rest of | Rest of | the Rest of | |||||||||||||||||||||||||
Served | Branches | Argentina | Aires | Aires | Country | Country | Country | |||||||||||||||||||||||||
1 BANCO MACRO S.A. (2) | 23 | 408 | 10 | % | 24 | 3 | % | 384 | 12 | % | 94 | % | ||||||||||||||||||||
2 BANCO HIPOTECARIO | 24 | 50 | 1 | % | 4 | 1 | % | 46 | 1 | % | 92 | % | ||||||||||||||||||||
3 BANCO DE LA NACION ARGENTINA (1) | 24 | 624 | 15 | % | 63 | 8 | % | 561 | 17 | % | 90 | % | ||||||||||||||||||||
4 COMPAÑIA FINANCIERA ARGENTINA S.A. | 18 | 59 | 1 | % | 8 | 1 | % | 51 | 2 | % | 86 | % | ||||||||||||||||||||
5 BANCO CREDICOOP COOPERATIVO LIMITADO | 20 | 246 | 6 | % | 37 | 5 | % | 209 | 6 | % | 85 | % | ||||||||||||||||||||
6 BANCO PATAGONIA S.A. | 24 | 137 | 3 | % | 37 | 5 | % | 100 | 3 | % | 73 | % | ||||||||||||||||||||
7 BANCO SANTANDER RIO S.A. | 21 | 261 | 6 | % | 80 | 10 | % | 181 | 6 | % | 69 | % | ||||||||||||||||||||
8 BANCO DE GALICIA Y BUENOS AIRES S.A. | 24 | 237 | 6 | % | 77 | 10 | % | 160 | 5 | % | 68 | % | ||||||||||||||||||||
9 STANDARD BANK ARGENTINA S.A. | 18 | 100 | 2 | % | 33 | 4 | % | 67 | 2 | % | 67 | % | ||||||||||||||||||||
10 BBVA BANCO FRANCES | 24 | 242 | 6 | % | 82 | 11 | % | 160 | 5 | % | 66 | % | ||||||||||||||||||||
OTHER | 24 | 1,671 | 41 | % | 329 | 43 | % | 1,342 | 41 | % | 78 | % | ||||||||||||||||||||
TOTAL | 24 | 4,035 | 100.0 | % | 774 | 100.0 | % | 3,261 | 100.0 | % | 81 | % | ||||||||||||||||||||
(1) | Public sector banks. | |
(2) | Includes the branches of Banco Macro and Banco del Tucumán. |
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Type of Asset | Weighting | |||
Cash and cash equivalents | 0-20 | % | ||
Government Bonds | ||||
With market risk capital requirements and Central Bank monetary control instruments including those registered as “available of sale” and “investment accounts” | 0 | % | ||
Other domestic bonds (without Central Government collateral) | 100 | % | ||
OECD Central Government bonds—rated AA or higher | 20 | % | ||
Loans | ||||
To the non-financial private sector With preferred collateral under the form of: | ||||
Cash, time deposit certificates issued by the creditor institution and given as security | 0 | % | ||
A guarantee by Reciprocal Guarantee Companies authorized by the Central Bank, export credit insurance, documentary credits | 50 | % | ||
Mortgages | 50%-100 | % | ||
Pledges | 50%-100 | % | ||
To the non-financial public sector | 100 | % | ||
To the financial sector | ||||
Public financial entities with the collection of federal taxes as collateral | 50 | % | ||
To foreign financial institutions or to financial institutions backed by them (rated AA or higher or investment grade) | 0%-20 | % | ||
Other credits from financial intermediation | 0%-100 | % | ||
Assets subject to financial leasing | 50%-100 | % | ||
Other assets | 0%-100 | % | ||
Guarantees and contingent liabilities | 0%-100 | % |
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CAMELBIG Rating | K Factor | |||
1 | 0.97 | |||
2 | 1.00 | |||
3 | 1.05 | |||
4 | 1.10 | |||
5 | 1.15 |
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Alpha1 (applied | Alpha2 (applied | |||||||
to public sector | to interest | |||||||
Period | financing) | rate risk) | ||||||
January/December 2004 | 0.05 | 0.20 | ||||||
January/December 2005 | 0.15 | 0.40 | ||||||
January/December 2006 | 0.30 | 0.70 | ||||||
January/December 2007 | 0.50 | 1.00 | ||||||
January/December 2008 | 0.75 | 1.00 | ||||||
As from January 2009 | 1.00 | 1.00 |
• | internal fraud, | ||
• | external fraud, | ||
• | employment practices and workplace safety, | ||
• | clients, products and business practices, | ||
• | damage to physical assets, | ||
• | business disruption and system failures, and | ||
• | execution, delivery and process management. |
a) | Identification and assessment: the identification process should consider both internal and external factors that could adversely affect the development of the processes and projections done according to the business strategies defined by the Bank. Financial entities should use internal data, establishing a process to register frequency, severity, categories and other relevant aspects of the OR loss events. This should be complemented with other tools, such as self-risk assessments, risk mapping and key risk indicators. |
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b) | Monitoring: an effective monitoring process is required, for quickly detecting and correcting deficiencies in the policies, processes and procedures for managing OR. In addition to monitoring operational loss events, banks should identify forward-looking indicators that enable them to act upon these risks appropriately. |
c) | Control and mitigation: financial entities must have an appropriate control system for ensuring compliance with a documented set of internal policies, which involves periodic reviews (at least annually) of control strategies and risk mitigation, and should adjust them if necessary. |
Rate (%) | ||||||||
Rate (%) | (Foreign | |||||||
Item | (pesos) | Currency) | ||||||
1-Checking account deposits | 19 | — | ||||||
2-Savings account deposits | 19 | 20 | ||||||
3-Legal custody accounts, special accounts for savings clubs, “Unemployment Fund for Construction Industry Workers”, “Salary payment,” special checking accounts for legal entities and social security savings accounts | 19 | 20 | ||||||
4-Other demand deposits and liabilities, pension and social security benefits credited by ANSES (Government Social Security Agency) pending collection and immobilized reserve funds for liabilities covered by these regulations | 19 | 20 | ||||||
5-Unused balances of advances in checking accounts under executed overdraft agreements | 19 | — | ||||||
6-Deposits in checking accounts of non-bank financial institutions, computed for purposes of meeting their required minimum cash reserve | 100 | 100 | ||||||
7-Time deposits, liabilities under acceptances, repurchase agreements (including responsibilities for sale or transfer of credits to agents different from financial institutions), stock-exchange repos (cautions and stock exchange passive repos), constant term investments, with an option for early termination or for renewal for a specified term and variable income, and other fixed-term liabilities, except rescheduled deposits included in the following items 11 and 12 and 13 and 15 of this table: | ||||||||
(i) Up to 29 days | 14 | 20 | ||||||
(ii) From 30 days to 59 days | 11 | 15 | ||||||
(iii) From 60 days to 89 days | 7 | 10 | ||||||
(iv) From 90 days to 179 days | 2 | 5 | ||||||
(v) From 180 days to 365 days | — | 2 | ||||||
(vi) More than 365 days | — | — | ||||||
8-Liabilities due to foreign facilities (not executed by means of time deposits or debt securities) | — | — | ||||||
9-Securities (including Negotiable Obligations) | ||||||||
a- Debt issued from 01/01/02, including restructured liabilities | — | — | ||||||
(i) Up to 29 days | 14 | 20 | ||||||
(ii) From 30 days to 59 days | 11 | 15 | ||||||
(iii) From 60 days to 89 days | 7 | 10 | ||||||
(iv) From 90 days to 179 days | 2 | 5 | ||||||
(v) From 180 days to 365 days | — | 2 | ||||||
(vi) More than 365 days | — | — | ||||||
b- Others | — | — | ||||||
10-Liabilities owing to the Trust Fund for Assistance to Financial and Insurance Institutions | — | — | ||||||
11-Demand and time deposits made upon a court order with funds arising from cases pending before the court, and the related immobilized balances | 10 | 10 | ||||||
12-Deposits that constitute assets of a mutual fund | 19 | 20 | ||||||
13-Special deposits related to inflows of funds. Decree 616/2005 | — | 100 | ||||||
14-Deposits and other liabilities in pesos (excluding the “Unemployment Fund for Construction Industry Workers”) which return is higher than the 15% of BADLAR rates average, corresponding to the preceding month | 100 | — | ||||||
15-Time deposits in nominative, non-transferable peso-denominated certificates, belonging to public sector holders, with the right to demand early withdrawal in less than 30 days from its setting up | 16 | — |
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(i) | Cash in treasury, cash in custody at other financial institutions and cash in transit and value carriers. | |
(ii) | Accounts maintained by financial institutions with the Central Bank in pesos. | |
(iii) | Accounts of minimum cash maintained by financial institutions with the Central Bank in U.S. dollars, or other foreign currency. | |
(iv) | Special guarantee accounts for the benefit of electronic clearing houses and to cover settlement of credit card and ATM transactions. | |
(v) | Checking accounts maintained by non-bank financial institutions with commercial banks for the purpose of meeting the minimum reserve requirement. | |
(vi) | Special guarantee accounts maintained with the Central Bank for transactions involving “cheque cancelatorio” (a check similar to a cashier’s check that may be purchased from a bank to pay a third party). | |
(vii) | Special accounts maintained with the Central Bank opened by the ANSES (Argentine Social Security Administration). | |
(viii) | Special accounts maintained by financial institutions with the Central Bank in public securities and securities issued by the Central Bank. |
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• | three times the institution’s RPC for the previous month, without considering the operations involving local financial institutions (domestic or foreign headquarters or branches); or |
• | five times the institution’s RPC for the previous month if operations involving local financial institutions are considered. |
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• | Negative foreign currency net global position (liabilities exceeding assets): as from January 1, 2007 (Communications “A” 4577 and 4598) the limit is 15%, but it can be extended up to 15 p.p. provided the entity records at the same time: a) medium and long-term financings in pesos to non-financial private sector (mid and long-term financings are those exceeding 4 years, weighting capital maturity without considering CER) under certain conditions for an amount equivalent to the increase of said limit; and b) an increase in the minimum capital requirement equivalent to the increase of the general limit of the negative foreign currency net global position. |
• | Positive net global position (assets exceeding liabilities): this limit cannot exceed the lesser of: |
1. | 30% of the Computable Net Worth. |
2. | Own liquid funds (which refer to the RPC minus “fixed assets” and loans to related clients). |
• | Shares of local companies | ||
• | Miscellaneous receivables | ||
• | Property and equipment | ||
• | Other assets | ||
• | Organization and development expenses | ||
• | Goodwill | ||
• | Financings granted to related clients. |
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Classification | Criteria | |
In normal situation | Borrowers for whom there is no doubt as to their ability to comply with their payment obligations. | |
Subject to special monitoring Under observation | Borrowers that among other criteria are up to 90 days past due and, although considered to be able to meet all their financial obligations, are sensitive to changes that could compromise their ability to honor debts without timely corrective measures. | |
Subject to special monitoring Tracking under negotiation or with refinancing agreement | Borrowers who are unable to comply with their obligations as agreed with the Bank and therefore, formally state their intention to refinance such debts, no later than 60 days after being past due. The borrower must enter into a refinancing agreement with the lender within 90 days (if up to two lenders are involved) or 180 days (if more than two lenders are involved) after the date on which the obligations became due. If no agreement has been reached within the established deadline, the borrower must be reclassified to the next category according to the indicators established for each level. | |
Troubled | Borrowers with difficulties honoring their financial obligations under the loan on a regular basis, which, if uncorrected, may result in losses to the Bank. | |
With high risk of insolvency | Borrowers who are highly unlikely to honor their financial obligations under the loan. | |
Irrecoverable | Loans classified as irrecoverable at the time they are reviewed (although the possibility might exist that such loans might be collected in the future). The borrower will not meet its financial obligations with the Bank. | |
Irrecoverable according to Central Bank’s rules | (a) Borrower has defaulted on its payment obligations under a loan for more than 180 calendar days according to the corresponding report provided by the Central Bank, which report includes (1) financial institutions liquidated by the Central Bank, (2) residual entities created as a result of the privatization of public financial institutions, or in the privatization or dissolution process, (3) financial institutions whose licenses have been revoked by the Central Bank and find themselves subject to judicial liquidation or bankruptcy proceedings and (4) trusts in which SEDESA is a beneficiary, and/or (b) certain kinds of foreign borrowers (including banks or other financial institutions that are not subject to the supervision of the Central Bank or similar authority of the country in which they are incorporated) that are not classified as “investment grade” by any of the rating agencies approved by the Central Bank. |
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Classification | Criteria | |
Performing | If all payments on loans are current or less than 31 calendar days overdue and, in the case of checking account overdrafts, less than 61 calendar days overdue. | |
Low Risk | Loans upon which payment obligations are overdue for a period of more than 31 and up to 90, calendar days. | |
Medium Risk | Loans upon which payment obligations are overdue for a period of more than 90 and up to 180 calendar days. | |
High Risk | Loans having payment obligations overdue for more than 180 calendar days and up to one year or if it is subject to judicial or out-of-court bankruptcy proceedings. | |
Irrecoverable | Loans in which payment obligations are more than one year overdue or the debtor is insolvent or in bankruptcy or liquidation. | |
Irrecoverable according to Central Bank’s rules | Same criteria as for commercial loans in the “Irrecoverable according to Central Bank’s rules” category. |
With Preferred | Without Preferred | |||||||
Category | Guarantees | Guarantees | ||||||
“In normal situation” and “Performing” | 1 | % | 1 | % | ||||
“In observation” and “Low risk” | 3 | % | 5 | % | ||||
“In negotiation or with rollover agreement” | 6 | % | 12 | % | ||||
“Troubled” and “Medium Risk” | 12 | % | 25 | % | ||||
“With high risk of insolvency” and “High Risk” | 25 | % | 50 | % | ||||
“Irrecoverable” | 50 | % | 100 | % | ||||
“Irrecoverable by according to Central Bank’s rule” | 100 | % | 100 | % |
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Banco Macro S.A.’s | ||||
direct and indirect equity interest | ||||
Percentage of | ||||
Subsidiary | Capital Stock and possible votes | |||
Banco del Tucumán S.A. (1) | 89.932 | % | ||
Macro Bank Limited (2)(3) | 99.999 | % | ||
Macro Securities S.A. Sociedad de Bolsa (1) | 99.921 | % | ||
Sud Inversiones & Análisis S.A. (1) | 98.605 | % | ||
Macro Fondos S.G.F.C.I. S.A. (1) | 99.936 | % |
(1) | Country of residence: Argentina | |
(2) | Country of residence: Bahamas | |
(3) | Consolidates with Sud Asesores (ROU) S.A. (100% of capital stock and voting rights) |
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Years Ended December 31, | ||||||||||||||||||||||||||||||||||||
2007 (1) | 2008 (1) | 2009 | ||||||||||||||||||||||||||||||||||
Interest | Average | Interest | Average | Interest | Average | |||||||||||||||||||||||||||||||
Average | Earned/ | Nominal | Average | Earned/ | Nominal | Average | Earned/ | Nominal | ||||||||||||||||||||||||||||
Balance | (Paid) | Rate | Balance | (Paid) | Rate | Balance | (Paid) | Rate | ||||||||||||||||||||||||||||
(in thousands of pesos, except percentages) | ||||||||||||||||||||||||||||||||||||
ASSETS | ||||||||||||||||||||||||||||||||||||
Interest-earning assets | ||||||||||||||||||||||||||||||||||||
Government securities (2) | ||||||||||||||||||||||||||||||||||||
Pesos | 3,923,881 | 421,477 | 10.74 | % | 4,346,565 | 540,302 | 12.43 | % | 5,124,739 | 785,628 | 15.33 | % | ||||||||||||||||||||||||
Dollars | 181,080 | 15,598 | 8.61 | % | 215,732 | (5,785 | ) | (2.68 | %) | 486,811 | 420,898 | 86.46 | % | |||||||||||||||||||||||
Total | 4,104,961 | 437,075 | 10.65 | % | 4,562,297 | 534,517 | 11.72 | % | 5,611,550 | 1,206,526 | 21.50 | % | ||||||||||||||||||||||||
Loans | ||||||||||||||||||||||||||||||||||||
Private and financial Sector | ||||||||||||||||||||||||||||||||||||
Pesos | 6,162,786 | 1,041,645 | 16.90 | % | 8,552,950 | 1,786,608 | 20.89 | % | 8,633,930 | 2,008,428 | 23.26 | % | ||||||||||||||||||||||||
Dollars | 1,228,829 | 78,815 | 6.41 | % | 1,821,403 | 143,916 | 7.90 | % | 2,225,961 | 189,730 | 8.52 | % | ||||||||||||||||||||||||
Total | 7,391,615 | 1,120,460 | 15.16 | % | 10,374,353 | 1,930,524 | 18.61 | % | 10,859,891 | 2,198,158 | 20.24 | % | ||||||||||||||||||||||||
Public Sector | ||||||||||||||||||||||||||||||||||||
Pesos | 767,970 | 51,575 | 6.72 | % | 755,364 | 38,058 | 5.04 | % | 302,441 | 24,197 | 8.00 | % | ||||||||||||||||||||||||
Total | 767, 970 | 51,575 | 6.72 | % | 755,364 | 38,058 | 5.04 | % | 302,441 | 24,197 | 8.00 | % | ||||||||||||||||||||||||
Deposits with the Central Bank | ||||||||||||||||||||||||||||||||||||
Pesos | 1,377,853 | 10,908 | 0.79 | % | 1,677,710 | 9,386 | 0.56 | % | — | — | 0.00 | % | ||||||||||||||||||||||||
Dollars | 568,821 | 7,474 | 1.31 | % | 598,344 | 4,998 | 0.84 | % | — | — | 0.00 | % | ||||||||||||||||||||||||
Total | 1,946,674 | 18,382 | 0.94 | % | 2,276,054 | 14,384 | 0.63 | % | — | — | 0.00 | % | ||||||||||||||||||||||||
Other assets | ||||||||||||||||||||||||||||||||||||
Pesos | 1,289,250 | 138,041 | 10.71 | % | 1,078,256 | 174,081 | 16.14 | % | 1,075,212 | 194,537 | 18.09 | % | ||||||||||||||||||||||||
Dollars | 417,109 | 23,663 | 5.67 | % | 539,237 | 46,871 | 8.69 | % | 1,118,378 | 87,515 | 7.83 | % | ||||||||||||||||||||||||
Total | 1,706,359 | 161,704 | 9.48 | % | 1,617,493 | 220,952 | 13.66 | % | 2,193,590 | 282,052 | 12.86 | % | ||||||||||||||||||||||||
Total interest-earning assets | �� | |||||||||||||||||||||||||||||||||||
Pesos | 13,521,740 | 1,663,646 | 12.30 | % | 16,410,845 | 2,548,435 | 15.53 | % | 15,136,322 | 3,012,790 | 19.90 | % | ||||||||||||||||||||||||
Dollars | 2,395,839 | 125,550 | 5.24 | % | 3,174,716 | 190,000 | 5.98 | % | 3,831,150 | 698,143 | 18.22 | % | ||||||||||||||||||||||||
Total | 15,917,579 | 1,789,196 | 11.24 | % | 19,585,561 | 2,738,435 | 13.98 | % | 18,967,472 | 3,710,933 | 19.56 | % | ||||||||||||||||||||||||
Non interest-earning assets | ||||||||||||||||||||||||||||||||||||
Cash and due from banks | ||||||||||||||||||||||||||||||||||||
Pesos | 404,796 | — | 539,344 | — | 687,021 | — | ||||||||||||||||||||||||||||||
Dollars | 455,163 | — | 286,879 | — | 513,818 | — | ||||||||||||||||||||||||||||||
Euros | 14,590 | — | 8,589 | — | 11,312 | — | ||||||||||||||||||||||||||||||
Other | 2,002 | — | 1,405 | — | 1,045 | — | ||||||||||||||||||||||||||||||
Total | 876,551 | 836,217 | 1,213,196 | — | ||||||||||||||||||||||||||||||||
Investments in other companies | ||||||||||||||||||||||||||||||||||||
Pesos | 14,529 | — | 16,911 | — | 9,755 | — | ||||||||||||||||||||||||||||||
Dollars | 1,552 | — | 1,275 | — | 1,015 | — | ||||||||||||||||||||||||||||||
Total | 16,081 | — | 18,186 | — | 10,770 | — | ||||||||||||||||||||||||||||||
Property and equipment and miscellaneous and intangible assets and items pending of allocation | ||||||||||||||||||||||||||||||||||||
Pesos | 771,073 | — | 801,674 | — | 763,325 | — | ||||||||||||||||||||||||||||||
Total | 771,073 | — | 801,674 | — | 763,325 | — | ||||||||||||||||||||||||||||||
Allowance for loan losses | ||||||||||||||||||||||||||||||||||||
Pesos | (174,992 | ) | — | (203,344 | ) | — | (367,163 | ) | — | |||||||||||||||||||||||||||
Dollars | (27,271 | ) | — | (39,776 | ) | — | (59,278 | ) | — | |||||||||||||||||||||||||||
Total | (202,263 | ) | — | (243,120 | ) | — | (426,441 | ) | — | |||||||||||||||||||||||||||
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Years Ended December 31, | ||||||||||||||||||||||||||||||||||||
2007 (1) | 2008 (1) | 2009 | ||||||||||||||||||||||||||||||||||
Interest | Average | Interest | Average | Interest | Average | |||||||||||||||||||||||||||||||
Average | Earned/ | Nominal | Average | Earned/ | Nominal | Average | Earned/ | Nominal | ||||||||||||||||||||||||||||
Balance | (Paid) | Rate | Balance | (Paid) | Rate | Balance | (Paid) | Rate | ||||||||||||||||||||||||||||
(in thousands of pesos, except percentages) | ||||||||||||||||||||||||||||||||||||
Other assets | ||||||||||||||||||||||||||||||||||||
Pesos | 271,428 | — | 578,682 | — | 1,942,877 | — | ||||||||||||||||||||||||||||||
Dollars | 41,280 | — | 288,686 | — | 1,492,830 | — | ||||||||||||||||||||||||||||||
Euros | 40 | — | 66 | — | 38 | — | ||||||||||||||||||||||||||||||
Total | 312,748 | — | 867,434 | — | 3,435,745 | — | ||||||||||||||||||||||||||||||
Total non interest-earning assets | ||||||||||||||||||||||||||||||||||||
Pesos | 1,286,834 | — | 1,733,267 | — | 3,035,815 | — | ||||||||||||||||||||||||||||||
Dollars | 470,724 | — | 537,064 | — | 1,948,385 | — | ||||||||||||||||||||||||||||||
Euros | 14,630 | — | 8,655 | — | 11,350 | — | ||||||||||||||||||||||||||||||
Other | 2,002 | — | 1,405 | — | 1,045 | — | ||||||||||||||||||||||||||||||
Total | 1,774,190 | — | 2,280,391 | — | 4,996,595 | — | ||||||||||||||||||||||||||||||
TOTAL ASSETS | ||||||||||||||||||||||||||||||||||||
Pesos | 14,808,574 | — | 18,144,112 | — | 18,172,137 | — | ||||||||||||||||||||||||||||||
Dollars | 2,866,563 | — | 3,711,780 | — | 5,779,535 | — | ||||||||||||||||||||||||||||||
Euros | 14,630 | — | 8,655 | — | 11,350 | — | ||||||||||||||||||||||||||||||
Other | 2,002 | — | 1,405 | — | 1,045 | — | ||||||||||||||||||||||||||||||
Total | 17,691,769 | — | 21,865,952 | — | 23,964,067 | — | ||||||||||||||||||||||||||||||
LIABILITIES | ||||||||||||||||||||||||||||||||||||
Interest-bearing liabilities | ||||||||||||||||||||||||||||||||||||
Savings accounts | ||||||||||||||||||||||||||||||||||||
Pesos | 2,486,927 | 27,313 | 1.10 | % | 2,822,961 | 29,508 | 1.05 | % | 2,842,075 | 31,500 | 1.11 | % | ||||||||||||||||||||||||
Dollars | 378,907 | 3,070 | 0.81 | % | 451,892 | 2,734 | 0.61 | % | 863,593 | 2,017 | 0.23 | % | ||||||||||||||||||||||||
Total | 2,865,834 | 30,383 | 1.06 | % | 3,274,853 | 32,242 | 0.98 | % | 3,705,668 | 33,517 | 0.90 | % | ||||||||||||||||||||||||
Time deposits | ||||||||||||||||||||||||||||||||||||
Pesos | 4,589,993 | 421,823 | 9.19 | % | 6,556,086 | 873,787 | 13.33 | % | 7,446,052 | 1,079,924 | 14.50 | % | ||||||||||||||||||||||||
Dollars | 1,437,841 | 47,923 | 3.33 | % | 1,717,511 | 63,970 | 3.72 | % | 2,648,975 | 68,260 | 2.58 | % | ||||||||||||||||||||||||
Total | 6,027,834 | 469,746 | 7.79 | % | 8,273,597 | 937,757 | 11.33 | % | 10,095,027 | 1,148,184 | 11.37 | % | ||||||||||||||||||||||||
Borrowing from the Central Bank | ||||||||||||||||||||||||||||||||||||
Pesos | 370,182 | 37,344 | 10.09 | % | 330,532 | 33,713 | 10.20 | % | 31,942 | 1,856 | 5,81 | % | ||||||||||||||||||||||||
Total | 370,182 | 37,344 | 10.09 | % | 330,532 | 33,713 | 10.20 | % | 31,942 | 1,856 | 5.81 | % | ||||||||||||||||||||||||
Borrowings from other financial institutions | ||||||||||||||||||||||||||||||||||||
Pesos | 223,845 | 20,394 | 9.11 | % | 121,897 | 11,847 | 9.72 | % | 99,791 | 9,269 | 9.29 | % | ||||||||||||||||||||||||
Dollars | 202,259 | 13,967 | 6.91 | % | 287,667 | 19,539 | 6.79 | % | 217,477 | 17,190 | 7.90 | % | ||||||||||||||||||||||||
Total | 426,104 | 34,361 | 8.06 | % | 409,564 | 31,386 | 7.66 | % | 317,268 | 26,459 | 8.34 | % | ||||||||||||||||||||||||
Corporate Bonds | ||||||||||||||||||||||||||||||||||||
Pesos | 178,101 | 19,082 | 10.71 | % | 309,263 | 34,055 | 11.01 | % | 238,250 | 25,631 | 10.76 | % | ||||||||||||||||||||||||
Dollars | 918,054 | 86,444 | 9.42 | % | 915,000 | 83,911 | 9.17 | % | 965,017 | 89,439 | 9.27 | % | ||||||||||||||||||||||||
Total | 1,096,155 | 105,526 | 9.63 | % | 1,224,263 | 117,966 | 9.64 | % | 1,203,267 | 115,070 | 9.56 | % | ||||||||||||||||||||||||
Other liabilities | ||||||||||||||||||||||||||||||||||||
Pesos | 412,865 | 21,096 | 5.11 | % | 450,926 | 29,528 | 6.55 | % | 72,774 | 2,911 | 4.00 | % | ||||||||||||||||||||||||
Dollars | 217,335 | 2,470 | 1.14 | % | 31,530 | 3,183 | 10.10 | % | — | — | 0.00 | % | ||||||||||||||||||||||||
Total | 630,200 | 23,566 | 3.74 | % | 482,456 | 32,711 | 6.78 | % | 72,774 | 2,911 | 4.00 | % | ||||||||||||||||||||||||
Total Interest-bearing liabilities | ||||||||||||||||||||||||||||||||||||
Pesos | 8,261,913 | 547,052 | 6.62 | % | 10,591,665 | 1,012,438 | 9.56 | % | 10,730,884 | 1,151,091 | 10.73 | % | ||||||||||||||||||||||||
Dollars | 3,154,396 | 153,874 | 4.88 | % | 3,403,600 | 173,337 | 5.09 | % | 4,695,062 | 176,906 | 3.77 | % | ||||||||||||||||||||||||
Total | 11,416,309 | 700,926 | 6.14 | % | 13,995,265 | 1,185,775 | 8.47 | % | 15,425,946 | 1,327,997 | 8.61 | % | ||||||||||||||||||||||||
Non-interest bearing liabilities and Shareholders’ equity | ||||||||||||||||||||||||||||||||||||
Demand deposits | ||||||||||||||||||||||||||||||||||||
Pesos | 3,069,049 | — | 3,665,895 | — | 3,930,465 | — | ||||||||||||||||||||||||||||||
Dollars | 6,680 | — | 8,059 | — | 17,092 | — | ||||||||||||||||||||||||||||||
Total | 3,075,729 | — | 3,673,954 | — | 3,947,557 | — | ||||||||||||||||||||||||||||||
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Years Ended December 31, | ||||||||||||||||||||||||||||||||||||
2007 (1) | 2008 (1) | 2009 | ||||||||||||||||||||||||||||||||||
Interest | Average | Interest | Average | Interest | Average | |||||||||||||||||||||||||||||||
Average | Earned/ | Nominal | Average | Earned/ | Nominal | Average | Earned/ | Nominal | ||||||||||||||||||||||||||||
Balance | (Paid) | Rate | Balance | (Paid) | Rate | Balance | (Paid) | Rate | ||||||||||||||||||||||||||||
(in thousands of pesos, except percentages) | ||||||||||||||||||||||||||||||||||||
Other liabilities | ||||||||||||||||||||||||||||||||||||
Pesos | 511,872 | — | 906,424 | — | 1,041,313 | — | ||||||||||||||||||||||||||||||
Dollars | 185,904 | — | 490,452 | — | 464,579 | — | ||||||||||||||||||||||||||||||
Euros | 6,045 | — | 6,916 | — | 10,944 | — | ||||||||||||||||||||||||||||||
Other | 130 | — | 75 | — | 61 | — | ||||||||||||||||||||||||||||||
Total | 703,951 | — | 1,403,867 | — | 1,516,897 | — | ||||||||||||||||||||||||||||||
Minority Interest | ||||||||||||||||||||||||||||||||||||
Pesos | 34,112 | — | 14,294 | — | 17,931 | — | ||||||||||||||||||||||||||||||
Total | 34,112 | — | 14,294 | — | 17,931 | — | ||||||||||||||||||||||||||||||
Shareholders’ equity | ||||||||||||||||||||||||||||||||||||
Pesos | 2,461,668 | — | 2,778,572 | — | 3,055,736 | — | ||||||||||||||||||||||||||||||
Total | 2,461,668 | — | 2,778,572 | — | 3,055,736 | — | ||||||||||||||||||||||||||||||
Total non-interest bearing liabilities and shareholders’ equity | ||||||||||||||||||||||||||||||||||||
Pesos | 6,076,701 | — | 7,365,185 | — | 8,045,445 | — | ||||||||||||||||||||||||||||||
Dollars | 192,584 | — | 498,511 | — | 481,671 | — | ||||||||||||||||||||||||||||||
Euros | 6,045 | — | 6,916 | — | 10,944 | — | ||||||||||||||||||||||||||||||
Other | 130 | — | 75 | — | 61 | — | ||||||||||||||||||||||||||||||
Total | 6,275,460 | — | 7,870,687 | — | 8,538,121 | — | ||||||||||||||||||||||||||||||
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||||||||||||||||||||||||||||||
Pesos | 14,338,614 | — | 17,956,850 | — | 18,776,329 | — | ||||||||||||||||||||||||||||||
Dollars | 3,346,980 | — | 3,902,111 | — | 5,176,733 | — | ||||||||||||||||||||||||||||||
Euros | 6,045 | — | 6,916 | — | 10,944 | — | ||||||||||||||||||||||||||||||
Other | 130 | — | 75 | — | 61 | — | ||||||||||||||||||||||||||||||
Total | 17,691,769 | — | 21,865,952 | — | 23,964,067 | — | ||||||||||||||||||||||||||||||
(1) | See note 4.2 to our audited consolidated financial statements for the year ended December 31, 2009. | |
(2) | Includes instruments issued by the Central Bank. The interest earned/paid includes changes due to mark-to-market of those securities. |
December 2007/December 2006 | December 2008/December 2007 | December 2009/December 2008 | ||||||||||||||||||||||||||||||||||
Increase (Decrease) Due to | Increase (Decrease) Due to | Increase (Decrease) Due to | ||||||||||||||||||||||||||||||||||
Changes in | Changes in | Changes in | ||||||||||||||||||||||||||||||||||
Net | Net | Net | ||||||||||||||||||||||||||||||||||
Volume | Rate | Change | Volume | Rate | Change | Volume | Rate | Change | ||||||||||||||||||||||||||||
(in thousands of pesos) | ||||||||||||||||||||||||||||||||||||
ASSETS | ||||||||||||||||||||||||||||||||||||
Interest-earning assets | ||||||||||||||||||||||||||||||||||||
Government securities | ||||||||||||||||||||||||||||||||||||
Pesos | 160,606 | (23,250 | ) | 137,356 | 52,542 | 66,283 | 118,825 | 119,295 | 126,031 | 245,326 | ||||||||||||||||||||||||||
Dollars | (4,293 | ) | 29,862 | 25,569 | (929 | ) | (20,454 | ) | (21,383 | ) | 234,376 | 192,307 | 426,683 | |||||||||||||||||||||||
Total | 156,313 | 6,612 | 162,925 | 51,613 | 45,829 | 97,442 | 353,671 | 318,338 | 672,009 | |||||||||||||||||||||||||||
Loans | ||||||||||||||||||||||||||||||||||||
Private and financial sector | ||||||||||||||||||||||||||||||||||||
Pesos | 399,688 | 65,714 | 465,402 | 499,276 | 245,687 | 744,963 | 18,838 | 202,982 | 221,820 | |||||||||||||||||||||||||||
Dollars | 32,921 | 6,690 | 39,611 | 46,822 | 18,279 | 65,101 | 34,483 | 11,331 | 45,814 | |||||||||||||||||||||||||||
Total | 432,609 | 72,404 | 505,013 | 546,098 | 263,966 | 810,064 | 53,321 | 214,313 | 267,634 | |||||||||||||||||||||||||||
Public sector | ||||||||||||||||||||||||||||||||||||
Pesos | 4,905 | (46,757 | ) | (41,852 | ) | (635 | ) | (12,882 | ) | (13,517 | ) | (36,236 | ) | 22,375 | (13,861 | ) | ||||||||||||||||||||
Dollars | ||||||||||||||||||||||||||||||||||||
Total | 4,905 | (46,757 | ) | (41,852 | ) | (635 | ) | (12,882 | ) | (13,517 | ) | (36,236 | ) | 22,375 | (13,861 | ) | ||||||||||||||||||||
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December 2007/December 2006 | December 2008/December 2007 | December 2009/December 2008 | ||||||||||||||||||||||||||||||||||
Increase (Decrease) Due to | Increase (Decrease) Due to | Increase (Decrease) Due to | ||||||||||||||||||||||||||||||||||
Changes in | Changes in | Changes in | ||||||||||||||||||||||||||||||||||
Net | Net | Net | ||||||||||||||||||||||||||||||||||
Volume | Rate | Change | Volume | Rate | Change | Volume | Rate | Change | ||||||||||||||||||||||||||||
(in thousands of pesos) | ||||||||||||||||||||||||||||||||||||
Deposits with the Central Bank | ||||||||||||||||||||||||||||||||||||
Pesos | 5,100 | 2,983 | 8,083 | 1,678 | (3,200 | ) | (1,522 | ) | — | (9,386 | ) | (9,386 | ) | |||||||||||||||||||||||
Dollars | 1,676 | (1,763 | ) | (87 | ) | 247 | (2,723 | ) | (2,476 | ) | — | (4,998 | ) | (4,998 | ) | |||||||||||||||||||||
Total | 6,776 | 1,220 | 7,996 | 1,925 | (5,923 | ) | (3,998 | ) | — | (14,384 | ) | (14,384 | ) | |||||||||||||||||||||||
Other assets | ||||||||||||||||||||||||||||||||||||
Pesos | 25,036 | 17,068 | 42,104 | (34,064 | ) | 70,104 | 36,040 | (551 | ) | 21,007 | 20,456 | |||||||||||||||||||||||||
Dollars | (3,504 | ) | 6,575 | 3,071 | 10,615 | 12,593 | 23,208 | 45,319 | (4,675 | ) | 40,644 | |||||||||||||||||||||||||
Total | 21,532 | 23,643 | 45,175 | (23,449 | ) | 82,697 | 59,248 | 44,768 | 16,332 | 61,100 | ||||||||||||||||||||||||||
Total interest-earning assets | ||||||||||||||||||||||||||||||||||||
Pesos | 595,335 | 15,758 | 611,093 | 518,797 | 365,992 | 884,789 | 101,346 | 363,009 | 464,335 | |||||||||||||||||||||||||||
Dollars | 26,800 | 41,364 | 68,164 | 56,755 | 7,695 | 64,450 | 314,178 | 193,965 | 508,143 | |||||||||||||||||||||||||||
Total | 622,135 | 57,122 | 679,257 | 575,552 | 373,687 | 949,239 | 415,524 | 556,974 | 972,498 | |||||||||||||||||||||||||||
LIABILITIES | ||||||||||||||||||||||||||||||||||||
Interest-bearing liabilities | ||||||||||||||||||||||||||||||||||||
Savings accounts | ||||||||||||||||||||||||||||||||||||
Pesos | 3,681 | (50 | ) | 3,631 | 3,513 | (1,318 | ) | 2,195 | 212 | 1,780 | 1,992 | |||||||||||||||||||||||||
Dollars | 176 | 206 | 382 | 442 | (778 | ) | (336 | ) | 962 | (1,679 | ) | (717 | ) | |||||||||||||||||||||||
Total | 3,857 | 156 | 4,013 | 3,955 | (2,096 | ) | 1,859 | 1,174 | 101 | 1,275 | ||||||||||||||||||||||||||
Time deposits | ||||||||||||||||||||||||||||||||||||
Pesos | 140,958 | 27,938 | 168,896 | 262,038 | 189,926 | 451,964 | 129,075 | 77,062 | 206,137 | |||||||||||||||||||||||||||
Dollars | 8,254 | 8,502 | 16,756 | 10,417 | 5,630 | 16,047 | 24,002 | (19,712 | ) | 4,290 | ||||||||||||||||||||||||||
Total | 149,212 | 36,440 | 185,652 | 272,455 | 195,556 | 468,011 | 153,077 | 57,350 | 210,427 | |||||||||||||||||||||||||||
Borrowings from the Central Bank | ||||||||||||||||||||||||||||||||||||
Pesos | 6,565 | 18,356 | 24,921 | (4,044 | ) | 413 | (3,631 | ) | (17,350 | ) | (14,507 | ) | (31,857 | ) | ||||||||||||||||||||||
Dollars | — | — | — | — | — | — | ||||||||||||||||||||||||||||||
Total | 6,565 | 18,356 | 24,921 | (4,044 | ) | 413 | (3,631 | ) | (17,350 | ) | (14,507 | ) | (31,857 | ) | ||||||||||||||||||||||
Borrowings from other financial institutions | ||||||||||||||||||||||||||||||||||||
Pesos | 11,292 | 792 | 12,084 | (9,908 | ) | 1,361 | (8,547 | ) | (2.053 | ) | (525 | ) | (2,578 | ) | ||||||||||||||||||||||
Dollars | 3,680 | (9,676 | ) | (5,996 | ) | 5,801 | (229 | ) | 5,572 | (5,548 | ) | 3,199 | (2,349 | ) | ||||||||||||||||||||||
Total | 14,972 | (8,884 | ) | 6,088 | (4,107 | ) | 1,132 | (2,975 | ) | (7,601 | ) | 2,674 | (4,927 | ) | ||||||||||||||||||||||
Corporate Bonds | ||||||||||||||||||||||||||||||||||||
Pesos | 18,403 | (336 | ) | 18,067 | 14,443 | 530 | 14,973 | (7,640 | ) | (784 | ) | (8,424 | ) | |||||||||||||||||||||||
Dollars | 82,785 | 2,047 | 84,832 | (280 | ) | (2,253 | ) | (2,533 | ) | 4,636 | 892 | 5,528 | ||||||||||||||||||||||||
Total | 101,188 | 1,711 | 102,899 | 14,163 | (1,723 | ) | 12,440 | (3,004 | ) | 108 | (2,896 | ) | ||||||||||||||||||||||||
Other liabilities | ||||||||||||||||||||||||||||||||||||
Pesos | 15,331 | 268 | 15,599 | 2,492 | 5,940 | 8,432 | (15,126 | ) | (11,491 | ) | (26,617 | ) | ||||||||||||||||||||||||
Dollars | 269 | 3,228 | 3,497 | (18,757 | ) | 19,470 | 713 | (3,183 | ) | (3,183 | ) | |||||||||||||||||||||||||
Total | 15,600 | 3,496 | 19,096 | (16,265 | ) | 25,410 | 9,145 | (15,126 | ) | (14,674 | ) | (29,800 | ) | |||||||||||||||||||||||
Total interest-bearing liabilities | ||||||||||||||||||||||||||||||||||||
Pesos | 196,230 | 46,968 | 243,198 | 268,534 | 196,852 | 465,386 | 87,118 | 51,535 | 138,653 | |||||||||||||||||||||||||||
Dollars | 95,164 | 4,307 | 99,471 | (2,377 | ) | 21,840 | 19,463 | 24,052 | (20,483 | ) | 3,569 | |||||||||||||||||||||||||
Total | 291,394 | 51,275 | 342,669 | 266,157 | 218,692 | 484,849 | 111,170 | 31,052 | 142,222 | |||||||||||||||||||||||||||
47
Table of Contents
Year Ended December 31, | ||||||||||||
2007 | 2008 | 2009 | ||||||||||
(in thousands of pesos, except percentages) | ||||||||||||
Average interest-earning assets | ||||||||||||
Pesos | 13,521,740 | 16,410,845 | 15,136,322 | |||||||||
Dollars | 2,395,839 | 3,174,716 | 3,831,150 | |||||||||
Total | 15,917,579 | 19,585,561 | 18,967,472 | |||||||||
Net interest income (1) | ||||||||||||
Pesos | 1,116,594 | 1,535,997 | 1,861,699 | |||||||||
Dollars | (28,324 | ) | 16,663 | 521,237 | ||||||||
Total | 1,088,270 | 1,552,660 | 2,382,936 | |||||||||
Net interest margin (2) | ||||||||||||
Pesos | 8.26 | % | 9.36 | % | 12.30 | % | ||||||
Dollars | (1.18 | )% | 0.52 | % | 13.61 | % | ||||||
Weighted average rate | 6.85 | % | 7.93 | % | 12.56 | % | ||||||
Yield spread nominal basis (3) | ||||||||||||
Pesos | 5.68 | % | 5.97 | % | 9.18 | % | ||||||
Dollars | 0.42 | % | 0.90 | % | 14.45 | % | ||||||
Weighted average rate | 5.12 | % | 5.51 | % | 10.96 | % |
(1) | Defined as interest earned less interest paid. Trading results from our portfolio of government securities and from foreign exchange transactions are included in interest. | |
(2) | Net interest income (including income from government and private securities) divided by average interest-earning assets. | |
(3) | Defined as the difference between the average nominal rate on interest-earning assets and the average nominal rate on interest-bearing liabilities. |
As of December 31, | ||||||||||||
2007 | 2008 | 2009 | ||||||||||
(in thousands of pesos) | ||||||||||||
Government Securities | ||||||||||||
In Pesos: | ||||||||||||
Holdings in Special Investment Accounts | ||||||||||||
Federal Government bonds at 2% — Maturity 2014 | — | 3,582 | 222,169 | |||||||||
Federal Government bonds at Badlar + 2.75 — Maturity 2014 | — | — | 191,384 | |||||||||
Secured bonds Decree No. 1,579/02 — Maturity 2018 | — | 23,769 | 178,979 | |||||||||
Discount bonds at 5.83% — Maturity 2033 | — | 22,201 | 18,207 | |||||||||
Consolidation bonds. Sixth series — Maturity 2024 | — | 4,122 | 5,350 | |||||||||
Consolidation bonds of social security payable at 2% — Maturity 2010 and 2014 | — | 83,847 | — | |||||||||
Subtotal Holdings in Special Investment Accounts | — | 137,521 | 616,089 | |||||||||
Holdings for Trading or Financial Intermediation | ||||||||||||
Discount bonds at 5.83% — Maturity 2033 | 18,746 | 209,277 | 9,752 | |||||||||
Consolidation bonds of social security payable at 2% — Maturity 2014 | 15,458 | 1,324 | 7,525 | |||||||||
Federal Government Bonds at 2% — Maturity 2014 | 13,840 | — | 6,579 | |||||||||
Federal Government bonds at Badlar + 2.75% — Maturity 2014 | — | — | 1,464 | |||||||||
Secured bonds Decree 1,579/02 at 2% — Maturity 2018 | 38,299 | 652 | 1,433 | |||||||||
Federal Government bonds at Badlar + 300 Pbs — Maturity 2015 | — | — | 1,064 | |||||||||
Consolidation bonds at 2% — Maturity 2016 | 4,663 | 1,523 | 599 | |||||||||
Others | 66,509 | 9,595 | 1,501 | |||||||||
Subtotal Holdings for Trading or Financial Intermediation | 157,515 | 222,371 | 29,917 | |||||||||
48
Table of Contents
As of December 31, | ||||||||||||
2007 | 2008 | 2009 | ||||||||||
(in thousands of pesos) | ||||||||||||
Unlisted Government Securities | ||||||||||||
Argentine Government bonds at Badlar + 3.50% — Maturity 2013 | — | 51,864 | 44,541 | |||||||||
Federal Government bonds at variable rate — Maturity 2013 | 11,987 | 10,385 | 9,738 | |||||||||
Province of Tucuman bonds at 2% — Maturity 2018 | — | 2,290 | 1,984 | |||||||||
Consolidation bonds at 2% — Maturity 2010 | — | — | 199 | |||||||||
Others | 52 | — | 7 | |||||||||
Subtotal Unlisted Government Securities | 12,039 | 64,539 | 56,469 | |||||||||
Instruments Issued by The Central Bank | ||||||||||||
Listed Central Bank bills and notes (Lebacs/Nobacs) | 3,478,246 | 772,496 | 264,485 | |||||||||
Unlisted Central Bank bills and notes (Lebacs/Nobacs) | — | 3,066,415 | 4,385,936 | |||||||||
Subtotal Instruments Issued by Central Bank | 3,478,246 | 3,838,911 | 4,650,421 | |||||||||
Total Government Securities in pesos | 3,647,800 | 4,263,342 | 5,352,896 | |||||||||
In Foreign Currency: | ||||||||||||
Holdings in Special Investment Accounts | ||||||||||||
Argentine Government bonds at 7% — Maturity 2015 | — | 49,590 | 38,881 | |||||||||
Federal Government bonds at Libor — Maturity 2012 and 2013 | 236,110 | 2,346 | ||||||||||
Par Bonds at variable rate — Maturity 2038 (governed by Argentine legislation) | — | 1,450 | 1,594 | |||||||||
Par bonds at variable rate — Maturity 2038 (governed by New York State legislation) | — | 382 | 461 | |||||||||
Argentine Government bonds at 7% — Maturity 2017 | — | 23,252 | — | |||||||||
Subtotal Holdings in Special Investment Accounts | — | 310,784 | 43,282 | |||||||||
Holding for Trading or Financial Intermediation | ||||||||||||
Argentine Government bonds at 7% — Maturity 2017 | 45,954 | 1,633 | 1,046,220 | |||||||||
Treasury Bills — Maturity 2010 | — | — | 379,666 | |||||||||
Federal Government bonds al Libor — Maturity 2012 | 140,870 | 96,415 | 52,874 | |||||||||
Argentine Government bonds at 7% — Maturity 2015 | — | 9,627 | 1,544 | |||||||||
Others | 14,060 | 14,421 | 850 | |||||||||
Subtotal Holding for Trading or Financial Intermediation | 200,884 | 122,096 | 1,481,154 | |||||||||
Unlisted Government Securities | ||||||||||||
Province of Cordoba debt securities at 12% — Maturity 2017 | — | — | 19,160 | |||||||||
Province of Tucuman bonds at Libor — Maturity 2015 | 8,112 | 5,419 | 3,820 | |||||||||
Subtotal Unlisted Government Securities | 8,112 | 5,419 | 22,980 | |||||||||
Total Government Securities in foreign currency | 208,996 | 438,299 | 1,547,416 | |||||||||
Total Government Securities | 3,856,796 | 4,701,641 | 6,900,312 | |||||||||
Investments in Listed Private Securities | ||||||||||||
In Pesos: | ||||||||||||
Mutual Funds | 11,617 | 5,544 | 31,469 | |||||||||
Shares | 2,971 | 378 | — | |||||||||
Other | — | 1 | 1 | |||||||||
In Foreign Currency: | ||||||||||||
Corporate Bonds | 23,595 | 63,629 | 43,047 | |||||||||
Mutual Funds | 19,690 | 8,133 | 6,359 | |||||||||
Commercial Papers | 30,402 | — | — | |||||||||
Shares | 5,681 | — | — | |||||||||
Total Private Securities | 93,956 | 77,685 | 80,876 | |||||||||
Total Government and Private Securities | 3,950,752 | 4,779,326 | 6,981,188 | |||||||||
Investments in Unlisted Private Securities | ||||||||||||
In Pesos: | ||||||||||||
Corporate Bonds (2) (3) | 190 | 22,390 | 9,099 | |||||||||
Certificates of Participation in Financial Trusts (1) | 438,331 | 304,660 | 343,070 | |||||||||
Debt Securities in Financial Trusts | 77,030 | 185,381 | 123,862 | |||||||||
In Foreign Currency: | ||||||||||||
Corporate Bonds (2) (3) | 44,067 | 60,104 | 71,647 | |||||||||
Certificates of Participation in Financial Trusts (1) | 33,611 | 33,149 | 47,094 | |||||||||
Debt Securities in Financial Trust | — | 41,766 | 82,925 | |||||||||
Total Investments in Unlisted Private Securities | 593,229 | 647,450 | 677,697 | |||||||||
Total | 4,543,981 | 5,426,776 | 7,658,885 | |||||||||
(1) | The Bank booked allowances for impairment in value amounting to 224,193; 223,893 and 203,797 as of December 31, 2009, 2008 and 2007, respectively. | |
(2) | The Bank booked allowances for impairment in value amounting to 1,017, 4,637 and 321 as of December 31, 2009, 2008 and 2007, respectively. | |
(3) | Includes Repurchased Corporate Bonds by Ps. 9,051 and US$ 20,054 as of December 31, 2008. |
49
Table of Contents
Maturing | ||||||||||||||||||||||||
After | After | |||||||||||||||||||||||
1 year | 5 years | �� | ||||||||||||||||||||||
Within | but within | but within | After 10 | Without | ||||||||||||||||||||
1 year | 5 years | 10 years | years | due date | Total | |||||||||||||||||||
Book value (in thousands of pesos) | ||||||||||||||||||||||||
In Pesos: | ||||||||||||||||||||||||
Holding in Special Investment accounts | ||||||||||||||||||||||||
Federal Government bonds at 2% — Maturity 2014 | — | 222,169 | — | — | — | 222,169 | ||||||||||||||||||
Federal Government at Badlar + 2.75% — Maturity 2014 | — | 191,384 | — | — | — | 191,384 | ||||||||||||||||||
Secured bonds Decree 1,579/02 at 2% — Maturity 2018 | 15,847 | 75,973 | 87,159 | — | — | 178,979 | ||||||||||||||||||
Discount bonds denominated at 5.83% — Maturity 2033 | — | — | — | 18,207 | — | 18,207 | ||||||||||||||||||
Consolidation bonds at 2% — Sixth series — Maturity 2024 | — | 400 | 2,664 | 2,286 | — | 5,350 | ||||||||||||||||||
Holding for Trading or Financial Intermediation | — | |||||||||||||||||||||||
Discount bonds denominated at 5.83% — Maturity 2033 | — | — | — | 9,752 | — | 9,752 | ||||||||||||||||||
Consolidation bonds of social security payable at 2% — Maturity 2014 | 1,701 | 5,824 | — | — | — | 7,525 | ||||||||||||||||||
Federal Government bonds at 2% — Maturity 2014 | — | 6,579 | — | — | — | 6,579 | ||||||||||||||||||
Federal Government bonds at Badlar +2.75% — Maturity 2014 | — | 1,464 | — | — | — | 1,464 | ||||||||||||||||||
Secured bonds Decree 1,579/02 at 2% — Maturity 2018 | 127 | 608 | 698 | — | — | 1,433 | ||||||||||||||||||
Federal government bonds at Badlar + 300Pbs — Maturity 2015 | — | 709 | 355 | — | — | 1,064 | ||||||||||||||||||
Consolidation bonds at 2% — Maturity 2016 | 100 | 399 | 100 | — | — | 599 | ||||||||||||||||||
Others | 297 | 220 | 191 | 793 | — | 1,501 | ||||||||||||||||||
Unlisted Government Securities | ||||||||||||||||||||||||
Argentine Government bonds at Badlar +3.50 % — Maturity 2013 | — | 44,541 | — | — | — | 44,541 | ||||||||||||||||||
Federal Government bonds at variable rate — Maturity 2013 | 2,434 | 7,304 | — | — | — | 9,738 | ||||||||||||||||||
Province of Tucuman bonds at 2% — Maturity 2018 | 176 | 842 | 966 | — | — | 1,984 | ||||||||||||||||||
Consolidation bonds at 2% — Maturity 2010 | 199 | — | — | — | — | 199 | ||||||||||||||||||
Others | 1 | 5 | 1 | — | — | 7 | ||||||||||||||||||
Instruments Issued by the Central Bank(1) | ||||||||||||||||||||||||
Listed Central Bank External bills and notes (Lebacs/Nobacs) | 264,485 | — | — | — | — | 264,485 | ||||||||||||||||||
Unlisted Central Bank External bills and notes (Lebacs/Nobacs) | 4,371,284 | 14,652 | — | — | — | 4,385,936 | ||||||||||||||||||
Total Government securities in pesos | 4,656,651 | 573,073 | 92,134 | 31,038 | — | 5,352,896 | ||||||||||||||||||
In Foreign Currency: | ||||||||||||||||||||||||
Holding in Special Investment Accounts | ||||||||||||||||||||||||
Argentine Government bonds at 7%- Maturity 2015 | — | — | 38,881 | — | — | 38,881 | ||||||||||||||||||
Federal Government bonds at Libor — Maturity 2012 and 2013 | 735 | 1,611 | — | — | — | 2,346 | ||||||||||||||||||
Par bonds at variable rate- Maturity 2038 (governed by Argentine legislation) | — | — | — | 1,594 | — | 1,594 | ||||||||||||||||||
Par bonds at variable rate -Maturity 2038 (governed by New York legislation) | — | — | — | 461 | — | 461 | ||||||||||||||||||
Holding for Trading or Financial Intermediation | ||||||||||||||||||||||||
Argentine Government bonds at 7% — Maturity 2017 | — | — | 1,046,220 | — | — | 1,046,220 | ||||||||||||||||||
Treasury Bills — Maturity 2010 | 379,666 | — | — | — | — | 379,666 | ||||||||||||||||||
Federal Government bonds at Libor — Maturity 2012 | 17,625 | 35,249 | — | — | — | 52,874 | ||||||||||||||||||
Federal Government bonds at 7% — Maturity 2015 | — | — | 1,544 | — | — | 1,544 | ||||||||||||||||||
Others | 86 | 639 | — | 125 | — | 850 |
50
Table of Contents
Maturing | ||||||||||||||||||||||||
After | After | |||||||||||||||||||||||
1 year | 5 years | |||||||||||||||||||||||
Within | but within | but within | After 10 | Without | ||||||||||||||||||||
1 year | 5 years | 10 years | years | due date | Total | |||||||||||||||||||
Book value (in thousands of pesos) | ||||||||||||||||||||||||
Unlisted Government Securities | ||||||||||||||||||||||||
Province of Cordoba debt securities at 12% — Maturity 2017 | 2,395 | 9,580 | 7,185 | — | — | 19,160 | ||||||||||||||||||
Province of Tucuman bonds at Libor — Maturity 2015 | 637 | 2,546 | 637 | — | — | 3,820 | ||||||||||||||||||
Total Government securities in foreign currency | 401,144 | 49,625 | 1,094,467 | 2,180 | — | 1,547,416 | ||||||||||||||||||
Total Government securities | 5,057,795 | 622,698 | 1,186,601 | 33,218 | — | 6,900,312 | ||||||||||||||||||
Private Securities | ||||||||||||||||||||||||
Investments in listed private securities | ||||||||||||||||||||||||
In Pesos: | ||||||||||||||||||||||||
Mutual Funds | 31,469 | — | — | — | — | 31,469 | ||||||||||||||||||
Others | 1 | 1 | ||||||||||||||||||||||
In foreign currency: | ||||||||||||||||||||||||
Corporate bonds | 34,452 | 1,240 | 7,355 | — | — | 43,047 | ||||||||||||||||||
Mutual Funds | 6,359 | — | — | — | — | 6,359 | ||||||||||||||||||
Investments in unlisted private securities | ||||||||||||||||||||||||
In Pesos: | ||||||||||||||||||||||||
Corporate Bonds (3) | 2,967 | 5,942 | — | — | 190 | 9,099 | ||||||||||||||||||
Certificates of Participation in Financial Trusts (2) | 2,243 | 29,056 | — | 10,591 | 301,180 | 343,070 | ||||||||||||||||||
Debt Securities in Financial Trusts | 92,292 | 20,323 | 11,247 | — | — | 123,862 | ||||||||||||||||||
In foreign currency: | ||||||||||||||||||||||||
Corporate Bonds (3) | 45,845 | 25,802 | — | — | — | 71,647 | ||||||||||||||||||
Certificates of Participation in Financial Trusts (2) | — | 47,094 | — | — | — | 47,094 | ||||||||||||||||||
Debt Securities in Financial Trust | 82,925 | — | — | — | — | 82,925 | ||||||||||||||||||
Total Private securities | 298,553 | 129,457 | 18,602 | 10,591 | 301,370 | 758,573 | ||||||||||||||||||
(1) | As of December 31, 2009, “Instruments Issued by the Central Bank” includes Ps. 973,763 to fall due in 30 days, Ps. 466,005 to fall due in 60 days, Ps. 1,020,002 to fall due in 90 days, Ps. 2,175,999 to fall due from 120 to 180 days and Ps. 14,652 to fall due after 360 days. | |
(2) | The Bank booked allowances for impairment in value amounting to 224,193 as of December 31, 2009. | |
(3) | The Bank booked allowances for impairment in value amounting to 1,017 as of December 31, 2009. |
As of December 31, | ||||||||||||
2007 | 2008 | 2009 | ||||||||||
(in thousands of pesos) | ||||||||||||
To the non-financial government sector | 732,481 | 744,507 | 206,484 | |||||||||
To the financial sector (1) | 161,702 | 80,423 | 90,916 | |||||||||
To the non-financial private sector and foreign residents | ||||||||||||
Overdrafts (2) | 1,375,075 | 1,556,433 | 1,436,292 | |||||||||
Documents (3) | 1,213,669 | 1,348,585 | 1,412,551 | |||||||||
Mortgages loans | 619,781 | 738,592 | 746,762 | |||||||||
Pledged loans (4) | 347,989 | 339,895 | 262,508 | |||||||||
Consumer loans (5) | 3,929,579 | 4,675,543 | 4,956,690 | |||||||||
Other loans | 1,718,978 | 2,071,927 | 2,271,756 | |||||||||
Accrued Interest, adjustments, foreign exchange and quoted price differences receivables | 153,902 | 195,026 | 182,168 | |||||||||
Less: Unposted payments | (69 | ) | (29 | ) | (29 | ) | ||||||
Less: Unearned discounts | (23,248 | ) | (32,596 | ) | (21,246 | ) | ||||||
Less: Allowances | (220,422 | ) | (438,348 | ) | (448,045 | ) | ||||||
Total Loans | 10,009,417 | 11,279,958 | 11,096,807 | |||||||||
(1) | Includes loans to financial institutions. | |
(2) | Overdrafts include overdraft lines of credit resulting from checking accounts. | |
(3) | Includes the face values of drafts, promissory notes and other bills transferred to us by endorsement for which the assignor is liable, whenever the latter is an Argentine resident within the non- financial private sector. | |
(4) | Includes the principal amounts actually lent of automobile and other collateral granted, for which the obligator is part of the non-financial private sector. | |
(5) | Consumer loans include credit card loans and other consumer loans. Overdrafts to individuals are included under “Overdrafts”. |
51
Table of Contents
Maturing | ||||||||||||||||
After | ||||||||||||||||
1 Year but | ||||||||||||||||
Amount as of | Within | Within | After | |||||||||||||
December 31, 2009 | 1 Year | 5 Years | 5 Years | |||||||||||||
(in thousands of pesos, except percentages) | ||||||||||||||||
To the non-financial government sector | 206,484 | 15,285 | 2,573 | 188,626 | ||||||||||||
To the financial sector (1) | 90,916 | 90,899 | 17 | — | ||||||||||||
To the non-financial private sector and foreign residents | ||||||||||||||||
Overdrafts (2) | 1,462,536 | 1,461,702 | 834 | — | ||||||||||||
Documents (3) | 1,423,792 | 1,383,480 | 39,642 | 670 | ||||||||||||
Mortgages loans | 767,438 | 247,772 | 334,627 | 185,039 | ||||||||||||
Pledged loans (4) | 273,175 | 149,878 | 123,240 | 57 | ||||||||||||
Consumer loans (5) | 5,003,389 | 2,391,137 | 2,577,479 | 34,773 | ||||||||||||
Other loans | 2,317,122 | 1,702,442 | 546,263 | 68,417 | ||||||||||||
Total loans | 11,544,852 | 7,442,595 | 3,624,675 | 477,582 | ||||||||||||
Percentage of total loan portfolio | 100 | % | 64.5 | % | 31.4 | % | 4.1 | % |
(1) | Includes loans to financial institutions. | |
(2) | Overdrafts include overdrafts lines of credit resulting from checking accounts. | |
(3) | Includes the face value of drafts, promissory notes and other bills transferred to us by endorsement for which the assignor is liable, whenever the latter is an Argentine resident within the non- financial private sector. | |
(4) | Includes the principal amount actually lent of automobile and other collateral granted, for which the obligor is part of the non- financial private sector. | |
(5) | Consumer loans include credit card loans and other consumer loans. Overdrafts to individuals are included under “Overdrafts.” |
As of December 31, | ||||||||||||||||||||||||
2007 | % | 2008 | % | 2009 | % | |||||||||||||||||||
(in thousands of pesos, except percentages) | ||||||||||||||||||||||||
Loan Portfolio | ||||||||||||||||||||||||
Categories | ||||||||||||||||||||||||
1 - In normal situation/ performing | 9,927,876 | 97.05 | % | 11,292,176 | 96.36 | % | 10,963,274 | 94.96 | % | |||||||||||||||
2 - Subject to special monitoring -in observation- in negotiation or with rollover agreement/ low risk | 143,128 | 1.40 | % | 117,023 | 1.00 | % | 206,477 | 1.79 | % | |||||||||||||||
3 - Troubled/Medium risk | 52,059 | 0.51 | % | 86,288 | 0.74 | % | 130,649 | 1.13 | % | |||||||||||||||
4 - With high risk of insolvency/ High risk | 62,856 | 0.61 | % | 172,950 | 1.48 | % | 188,058 | 1.63 | % | |||||||||||||||
5 - Irrecoverable | 36,526 | 0.36 | % | 48,434 | 0.41 | % | 55,996 | 0.49 | % | |||||||||||||||
6 - Irrecoverable according to Central Bank’s rules | 7,394 | 0.07 | % | 1,435 | 0.01 | % | 398 | 0.00 | % | |||||||||||||||
Total loans | 10,229,839 | 100.00 | % | 11,718,306 | 100.00 | % | 11,544,852 | 100.00 | % | |||||||||||||||
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Year Ended December 31, | ||||||||||||||||||||
2005 | 2006 | 2007 | 2008 | 2009 | ||||||||||||||||
(in thousands of pesos, except percentages) | ||||||||||||||||||||
Balance at the beginning of the year | 225,340 | 247,532 | 208,581 | 220,422 | 438,348 | |||||||||||||||
Provisions for loan losses | 142,045 | (2) | 102,538 | (3) | 93,498 | 314,532 | 187,648 | |||||||||||||
Charge off (1) | (119,853 | ) | (141,489 | ) | (81,657 | ) | (96,606 | ) | (177,951 | ) | ||||||||||
Overdrafts | (4,777 | ) | (31,584 | ) | (13,889 | ) | (9,314 | ) | (32,519 | ) | ||||||||||
Personal loans | (1,657 | ) | (4,411 | ) | (10,929 | ) | (47,527 | ) | (99,192 | ) | ||||||||||
Credit Cards | (993 | ) | (2,184 | ) | (5,751 | ) | (12,134 | ) | (16,892 | ) | ||||||||||
Mortgage loans | (41,518 | ) | (25,825 | ) | (8,071 | ) | (5,087 | ) | (5,096 | ) | ||||||||||
Pledge loans | (26,758 | ) | (4,323 | ) | (674 | ) | (2,686 | ) | (1,341 | ) | ||||||||||
Documents | (25,469 | ) | (39,974 | ) | (6,931 | ) | (5,296 | ) | (14,171 | ) | ||||||||||
Other | (18,681 | ) | (33,188 | ) | (35,412 | ) | (14,562 | ) | (8,740 | ) | ||||||||||
Balance at the end of year | 247,532 | 208,581 | 220,422 | 438,348 | 448,045 | |||||||||||||||
Charge-off/average loans (1) | 3.78 | % | 2.72 | % | 1.18 | % | 0.87 | % | 1.59 | % |
(1) | Charge-off includes reversals. | |
(2) | Includes Ps. 74,775 thousand for the incorporation of Banco Empresario de Tucumán. | |
(3) | Includes Ps. 13,993 thousand and Ps. 28,443 thousand for the incorporations of Banco del Tucumán and Nuevo Banco Bisel, respectively. |
Pursuant to this Rule, we charge-off non-performing loans on the next month following the date on which such circumstances are verified. Such debts are registered in off-balance accounts.
Year Ended December 31, | ||||||||||||||||||||||||
2007 | 2008 | 2009 | ||||||||||||||||||||||
(in thousands of pesos, except percentages) | ||||||||||||||||||||||||
Overdrafts | 25,510 | 11.57 | % | 64,107 | 14.62 | % | 37,242 | 8.31 | % | |||||||||||||||
Documents | 23,215 | 10.53 | % | 42,003 | 9.58 | % | 32,825 | 7.33 | % | |||||||||||||||
Mortgage loans | 20,210 | 9.17 | % | 26,378 | 6.02 | % | 24,422 | 5.45 | % | |||||||||||||||
Pledged loans | 8,608 | 3.91 | % | 9,512 | 2.17 | % | 9,664 | 2.16 | % | |||||||||||||||
Personal loans | 70,375 | 31.93 | % | 174,398 | 39.79 | % | 195,643 | 43.67 | % | |||||||||||||||
Credit cards | 17,658 | 8.01 | % | 34,281 | 7.82 | % | 33,915 | 7.57 | % | |||||||||||||||
Other | 54,846 | 24.88 | % | 87,669 | 20.00 | % | 114,334 | 25.52 | % | |||||||||||||||
TOTAL | 220,422 | 100 | % | 438,348 | 100 | % | 448,045 | 100 | % | |||||||||||||||
2007 | 2008 | 2009 | ||||||||||||||||||||||
Loan | % of Loan | Loan | % of Loan | Loan | % of Loan | |||||||||||||||||||
Portfolio | Portfolio | Portfolio | Portfolio | Portfolio | Portfolio | |||||||||||||||||||
(in thousands of pesos, except percentages) | ||||||||||||||||||||||||
Retail Loans | 3,410,359 | 33.34 | % | 4,023,725 | 34.34 | % | 4,403,933 | 38.15 | % | |||||||||||||||
Agricultural livestock- Forestry- Fishing- Mining- Hunting | 1,050,102 | 10.27 | % | 1,538,027 | 13.12 | % | 1,910,164 | 16.55 | % | |||||||||||||||
Construction | 411,725 | 4.02 | % | 563,526 | 4.81 | % | 1,112,702 | 9.64 | % | |||||||||||||||
Other services | 970,585 | 9.49 | % | 852,658 | 7.28 | % | 858,936 | 7.44 | % | |||||||||||||||
Retail and consumer products | 703,063 | 6.87 | % | 831,741 | 7.10 | % | 747,897 | 6.48 | % | |||||||||||||||
Foodstuff and beverages | 700,917 | 6.85 | % | 521,849 | 4.45 | % | 637,814 | 5.52 | % | |||||||||||||||
Financial Services | 408,002 | 3.99 | % | 289,450 | 2.47 | % | 290,331 | 2.51 | % | |||||||||||||||
Governmental services | 861,852 | 8.42 | % | 886,749 | 7.57 | % | 258,784 | 2.24 | % | |||||||||||||||
Real estate, business and leases | 59,512 | 0.58 | % | 267,604 | 2.28 | % | 236,555 | 2.05 | % | |||||||||||||||
Transportation, storage and communications | 181,646 | 1.78 | % | 263,999 | 2.25 | % | 190,796 | 1.65 | % | |||||||||||||||
Manufacturing and wholesales | 166,169 | 1.62 | % | 283,555 | 2.42 | % | 140,620 | 1.22 | % | |||||||||||||||
Chemicals | 340,450 | 3.33 | % | 608,157 | 5.19 | % | 129,145 | 1.12 | % | |||||||||||||||
Electricity, oil, water | 74,256 | 0.73 | % | 170,950 | 1.46 | % | 75,095 | 0.65 | % | |||||||||||||||
Hotels and restaurants | 39,365 | 0.38 | % | 32,325 | 0.28 | % | 29,949 | 0.26 | % | |||||||||||||||
Other | 851,836 | 8.33 | % | 583,991 | 4.98 | % | 522,131 | 4.52 | % | |||||||||||||||
Total | 10,229,839 | 100.00 | % | 11,718,306 | 100.00 | % | 11,544,852 | 100.00 | % | |||||||||||||||
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Year ended December 31, | ||||||||||||
2007 | 2008 | 2009 | ||||||||||
(in thousands of pesos) | ||||||||||||
Deposits in Domestic Bank Offices | ||||||||||||
Non-interest-bearing Demand Deposits (1) | ||||||||||||
Average | ||||||||||||
Pesos | 3,067,834 | 3,665,382 | 3,929,402 | |||||||||
Dollars | 6,180 | 8,044 | 13,179 | |||||||||
Total | 3,074,014 | 3,673,426 | 3,942,581 | |||||||||
Saving Accounts | ||||||||||||
Average | ||||||||||||
Pesos | 2,486,927 | 2,822,961 | 2,842,075 | |||||||||
Dollars | 297,472 | 361,324 | 542,740 | |||||||||
Total | 2,784,399 | 3,184,285 | 3,384,815 | |||||||||
Average nominal rate | ||||||||||||
Pesos | 1.10 | % | 1.05 | % | 1.11 | % | ||||||
Dollars | 0.39 | % | 0.46 | % | 0.34 | % | ||||||
Total | 1.02 | % | 0.98 | % | 0.99 | % | ||||||
Time Deposits | ||||||||||||
Average | ||||||||||||
Pesos | 4,589,993 | 6,556,086 | 7,446,052 | |||||||||
Dollars | 1,211,832 | 1,490,885 | 2,337,132 | |||||||||
Total | 5,801,825 | 8,046,971 | 9,783,184 | |||||||||
Average nominal rate | ||||||||||||
Pesos | 9.19 | % | 13.33 | % | 14.50 | % | ||||||
Dollars | 3.04 | % | 3.78 | % | 2.75 | % | ||||||
Total | 7.90 | % | 11.56 | % | 11.70 | % | ||||||
Deposits in Foreign Bank Offices | ||||||||||||
Non-interest-bearing Demand Deposits | ||||||||||||
Average | ||||||||||||
Pesos | 1,215 | 513 | 1,063 | |||||||||
Dollars | 500 | 15 | 3,913 | |||||||||
Total | 1,715 | 528 | 4,976 | |||||||||
Saving Accounts | ||||||||||||
Average | ||||||||||||
Pesos | — | — | — | |||||||||
Dollars | 81,435 | 90,568 | 320,853 | |||||||||
Total | 81,435 | 90,568 | 320,853 | |||||||||
Average nominal rate | ||||||||||||
Dollars | 2.36 | % | 1.20 | % | 0.05 | % | ||||||
Total | 2.36 | % | 1.20 | % | 0.05 | % | ||||||
Time Deposits | ||||||||||||
Average | ||||||||||||
Dollars | 226,009 | 226,626 | 311,843 | |||||||||
Total | 226,009 | 226,626 | 311,843 | |||||||||
Average nominal rate | ||||||||||||
Dollars | 4.92 | % | 3.35 | % | 1.28 | % | ||||||
Total | 4.92 | % | 3.35 | % | 1.28 | % |
(1) | Non-interest-bearing demand deposits consist of checking accounts. |
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Maturing | ||||||||||||||||||||
After 3 | After 6 | |||||||||||||||||||
Within 3 | but Within | but Within | After 12 | |||||||||||||||||
Total | Months | 6 Months | 12 Months | Months | ||||||||||||||||
(in thousands of pesos) | ||||||||||||||||||||
Checking accounts | 4,298,209 | 4,298,209 | — | — | — | |||||||||||||||
Savings accounts | 3,645,994 | 3,645,994 | — | — | — | |||||||||||||||
Time deposits | 10,107,235 | 7,980,642 | 1,233,711 | 767,864 | 125,018 | |||||||||||||||
Investment accounts | 54,371 | 16,279 | 7,673 | 29,687 | 732 | |||||||||||||||
Other | 487,057 | 475,391 | 880 | 4,854 | 5,932 | |||||||||||||||
Total | 18,592,866 | 16,416,515 | 1,242,264 | 802,405 | 131,682 | |||||||||||||||
Maturing | ||||||||||||||||||||
After 3 | After 6 | |||||||||||||||||||
Within 3 | but Within | but Within | After 12 | |||||||||||||||||
Total | Months | 6 Months | 12 Months | Months | ||||||||||||||||
(in thousands of pesos) | ||||||||||||||||||||
Domestic bank offices | 6,733,262 | 4,696,450 | 1,126,460 | 784,962 | 125,390 | |||||||||||||||
Foreign bank offices | 231,536 | 208,939 | 20,988 | 1,609 | — | |||||||||||||||
Total | 6,964,798 | 4,905,389 | 1,147,448 | 786,571 | 125,390 | |||||||||||||||
Year Ended December 31, | ||||||||||||||||||||||||
2007 | 2008 | 2009 | ||||||||||||||||||||||
Annualized | Annualized | Annualized | ||||||||||||||||||||||
Amount | Rate | Amount | Rate | Amount | Rate | |||||||||||||||||||
(in thousands of pesos, except percentages) | ||||||||||||||||||||||||
Central Bank of the Argentine Republic: | ||||||||||||||||||||||||
Total amount outstanding at the end of the reported period | 72,526 | 1.97 | % | 78,939 | 1.95 | % | 1,363 | 0.00 | % | |||||||||||||||
Average during year (1) | 70,068 | 1.97 | % | 76,023 | 1.96 | % | 1,590 | 0.00 | % | |||||||||||||||
Maximum month-end balance | 72,526 | 78,939 | 2,168 | |||||||||||||||||||||
Banks and international organizations: | ||||||||||||||||||||||||
Total amount outstanding at the end of the reported period | 7,279 | 5.58 | % | 59,737 | 4.92 | % | 227,214 | 7.78 | % | |||||||||||||||
Average during year (1) | 125,827 | 6.96 | % | 55,054 | 4.38 | % | 121,662 | 8.06 | % | |||||||||||||||
Maximum month-end balance | 166,178 | �� | 86,762 | 227,214 | ||||||||||||||||||||
Corporate Bonds | ||||||||||||||||||||||||
Total amount outstanding at the end of the reported period | 18,947 | 8.76 | % | 16,518 | 9.46 | % | 15,719 | 9.24 | % | |||||||||||||||
Average during year (1) | 15,343 | 8.97 | % | 16,612 | 9.45 | % | 14,797 | 9.30 | % | |||||||||||||||
Maximum month-end balance | 18,947 | 17,063 | 15,897 | |||||||||||||||||||||
Financing received from Argentine financial institutions: | ||||||||||||||||||||||||
Total amount outstanding at the end of the reported period | 119,038 | 6.75 | % | 31,846 | 10.33 | % | 149,122 | 9.45 | % | |||||||||||||||
Average during year (1) | 68,801 | 6.56 | % | 96,294 | 5.47 | % | 64,430 | 9.11 | % | |||||||||||||||
Maximum month-end balance | 119,038 | 166,146 | 149,122 | |||||||||||||||||||||
Other | ||||||||||||||||||||||||
Total amount outstanding at the end of the reported period | 412,975 | 0.03 | % | 545,183 | 0.02 | % | 652,330 | 0.02 | % | |||||||||||||||
Average during year (1) | 341,471 | 0.01 | % | 524,019 | 0.02 | % | 620,873 | 0.02 | % | |||||||||||||||
Maximum month-end balance | 412,161 | 599,063 | 652,330 | |||||||||||||||||||||
Subordinated corporate bonds: | ||||||||||||||||||||||||
Total amount outstanding at the end of the reported period | 16,404 | 8.03 | % | 2,740 | 4.00 | % | 2,968 | 4.00 | % | |||||||||||||||
Average during year (1) | 29,651 | 8.25 | % | 21,056 | 7.02 | % | 9,762 | 4.00 | % | |||||||||||||||
Maximum month-end balance | 59,288 | 36,987 | 16,854 | |||||||||||||||||||||
Total Short Term | 647,169 | 734,963 | 1,048,716 | |||||||||||||||||||||
(1) | Average balances are calculated from quarterly-end balances. |
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Year Ended December 31, | ||||||||||||
2007 | 2008 | 2009 | ||||||||||
(in thousands of pesos, except percentages) | ||||||||||||
Net income | 495,200 | 660,050 | 751,930 | |||||||||
Average total assets | 17,691,769 | 21,865,952 | 23,964,067 | |||||||||
Average shareholders’ equity | 2,461,668 | 2,778,572 | 3,055,736 | |||||||||
Shareholders’ equity at the end of the fiscal year | 2,713,020 | 2,821,911 | 3,358,801 | |||||||||
Net income as a percentage of: | ||||||||||||
Average total assets | 2.80 | % | 3.02 | % | 3.14 | % | ||||||
Average shareholders’ equity | 20.12 | % | 23.76 | % | 24.61 | % | ||||||
Declared cash dividends (2) | 170,995 | 149,870 | 208,070 | |||||||||
Dividend payout ratio (1) | 34.53 | % | 22.71 | % | 27.67 | % | ||||||
Average shareholders’ equity as a percentage of Average Total Assets | 13.91 | % | 12.71 | % | 12.75 | % |
(1) | Declared cash dividends stated as percentage of net income. | |
(2) | For the fiscal year ended December 31, 2009, the dividends approved by the shareholders’ meeting held on April 6, 2010 have been authorized by the Central Bank on May 28, 2010. For the fiscal year ended December 31, 2008 and 2007, the dividends paid in cash were Ps. 148,335 and 170,995, respectively, based on the number of shares outstanding on such payment dates. |
Remaining Maturity at December 31, 2009 | ||||||||||||||||||||||||
Total | ||||||||||||||||||||||||
0-1 Year | 1-5 Years | 5-10 Years | Over 10 years | Without due date | (2) | |||||||||||||||||||
Interest-earning assets: | ||||||||||||||||||||||||
Interest-bearing deposits in other banks | 363,041 | — | — | — | — | 363,041 | ||||||||||||||||||
Government Securities | 5,057,795 | 622,698 | 1,186,601 | 33,218 | — | 6,900,312 | ||||||||||||||||||
Goods in financial leasing | 113,705 | 127,278 | 9,256 | — | — | 250,239 | ||||||||||||||||||
Loans to non-financial government sector (1) | 15,285 | 2,573 | 174,551 | 14,075 | — | 206,484 | ||||||||||||||||||
Loans to the private and financial sector (1) | 7,427,310 | 3,622,102 | 193,717 | 95,239 | — | 11,338,368 | ||||||||||||||||||
Other assets | 260,725 | 129,457 | 18,602 | 10,591 | 301,370 | 720,745 | ||||||||||||||||||
Total Interest-Earning Assets | 13,237,861 | 4,504,108 | 1,582,727 | 153,123 | 301,370 | 19,779,189 | ||||||||||||||||||
Interest-bearing liabilities: | ||||||||||||||||||||||||
Checking | 491,376 | — | — | — | — | 491,376 | ||||||||||||||||||
Savings accounts | 3,645,994 | — | — | — | — | 3,645,994 | ||||||||||||||||||
Time deposits | 9,982,217 | 125,014 | 4 | — | — | 10,107,235 | ||||||||||||||||||
Investment accounts | 53,639 | 732 | — | — | — | 54,371 | ||||||||||||||||||
Corporate Bonds | 15,719 | 197,066 | 403,950 | — | — | 616,735 | ||||||||||||||||||
Subordinated corporate bonds | 2,968 | — | — | 569,505 | — | 572,473 | ||||||||||||||||||
Liabilities with Central Bank | — | 109 | 108 | 317 | — | 534 | ||||||||||||||||||
Liabilities with local financial companies | 149,122 | 19,024 | 21,825 | — | — | 189,971 | ||||||||||||||||||
Liabilities with bank and international Organizations | 227,214 | — | — | — | — | 227,214 | ||||||||||||||||||
Other liabilities | 79,317 | 5,926 | — | 75,687 | — | 160,930 | ||||||||||||||||||
Total Interest-Bearing Liabilities | 14,647,566 | 347,871 | 425,887 | 645,509 | — | 16,066,833 | ||||||||||||||||||
Asset (Liability) Gap | (1,409,706 | ) | 4,156,237 | 1,156,840 | (492,386 | ) | 301,370 | 3,712,355 | ||||||||||||||||
Cumulative Asset/Liability Gap | (1,409,706 | ) | 2,746,531 | 3,903,371 | 3,410,985 | 3,712,355 | — | |||||||||||||||||
Cumulative sensitivity gap as a percentage of total interest-earning assets | (7.13 | )% | 13.89 | % | 19.73 | % | 17.25 | % | 18.77 | % |
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Remaining Maturity at December 31, 2009 | ||||||||||||||||||||||||
Total | ||||||||||||||||||||||||
0-1 Year | 1-5 Years | 5-10 Years | Over 10 years | Without due date | (2) | |||||||||||||||||||
Interest-earning assets in Pesos: | ||||||||||||||||||||||||
Government securities | 4,656,651 | 573,073 | 92,134 | 31,038 | — | 5,352,896 | ||||||||||||||||||
Goods in financial leasing | 98,155 | 79,685 | 65 | — | — | 177,905 | ||||||||||||||||||
Loans to non-financial government sector (1) | 15,285 | 2,573 | 174,551 | 14,075 | — | 206,484 | ||||||||||||||||||
Loans to the private and financial sector (1) | 5,808,203 | 3,390,639 | 162,063 | 95,239 | — | 9,456,144 | ||||||||||||||||||
Other assets | 97,503 | 55,321 | 11,247 | 10,591 | 301,370 | 476,032 | ||||||||||||||||||
Total Interest-Earning Assets in Pesos | 10,675,797 | 4,101,291 | 440,060 | 150,943 | 301,370 | 15,669,461 | ||||||||||||||||||
Interest-bearing liabilities in Pesos: | ||||||||||||||||||||||||
Checking | 93,621 | — | — | — | — | 93,621 | ||||||||||||||||||
Saving accounts | 3,025,908 | — | — | — | — | 3,025,908 | ||||||||||||||||||
Time deposits | 7,421,653 | 124,841 | 4 | — | — | 7,546,498 | ||||||||||||||||||
Investment accounts | 36,175 | 591 | — | — | — | 36,766 | ||||||||||||||||||
Corporate bonds | 1,412 | 197,066 | — | — | — | 198,478 | ||||||||||||||||||
Subordinated corporate bonds | 963 | — | — | — | — | 963 | ||||||||||||||||||
Liabilities with Central Bank | — | 109 | 108 | 317 | — | 534 | ||||||||||||||||||
Liabilities with local financial institutions | 149,122 | 19,024 | 21,825 | — | — | 189,971 | ||||||||||||||||||
Other liabilities | 79,317 | 5,926 | — | 75,687 | — | 160,930 | ||||||||||||||||||
Total Interest-Bearing Liabilities in Pesos | 10,808,171 | 347,557 | 21,937 | 76,004 | — | 11,253,669 | ||||||||||||||||||
Asset(Liability) Gap | (132,375 | ) | 3,753,734 | 418,123 | 74,939 | 301,370 | 4,415,792 | |||||||||||||||||
Cumulative Asset/Liability Gap | (132,375 | ) | 3,621,360 | 4,039,483 | 4,114,422 | 4,415,792 | ||||||||||||||||||
Cumulative sensitivity gap as a percentage of total interest-earning assets | (0.84 | )% | 23.11 | % | 25.78 | % | 26.26 | % | 28.18 | % |
Remaining Maturity at December 31, 2009 | ||||||||||||||||||||||||
Total | ||||||||||||||||||||||||
0-1 Year | 1-5 Years | 5-10 Years | Over 10 years | Without due date | (2) | |||||||||||||||||||
Interest-earning assets in foreign currency | ||||||||||||||||||||||||
Interest-bearing deposits in other banks | 363,041 | — | — | — | — | 363,041 | ||||||||||||||||||
Government securities | 401,144 | 49,625 | 1,094,467 | 2,180 | — | 1,547,416 | ||||||||||||||||||
Goods in financial leasing | 15,550 | 47,593 | 9,191 | — | — | 72,334 | ||||||||||||||||||
Loans to the private and financial sector (1) | 1,619,107 | 231,463 | 31,654 | — | — | 1,882,224 | ||||||||||||||||||
Other assets | 163,222 | 74,136 | 7,355 | — | — | 244,713 | ||||||||||||||||||
Total Interest-Earning Assets | 2,562,064 | 402,817 | 1,142,667 | 2,180 | — | 4,109,728 | ||||||||||||||||||
Interest-bearing liabilities in foreign currency: | ||||||||||||||||||||||||
Checking | 397,755 | — | — | — | — | 397,755 | ||||||||||||||||||
Saving accounts | 620,086 | — | — | — | — | 620,086 | ||||||||||||||||||
Time deposits | 2,560,564 | 173 | — | — | — | 2,560,737 | ||||||||||||||||||
Investment accounts | 17,464 | 141 | — | — | — | 17,605 | ||||||||||||||||||
Corporate bonds | 14,307 | — | 403,950 | — | — | 418,257 | ||||||||||||||||||
Subordinated corporate bonds | 2,005 | — | — | 569,505 | — | 571,510 | ||||||||||||||||||
Liabilities with Central Bank | — | — | — | — | — | — | ||||||||||||||||||
Liabilities with local financial | — | — | — | — | — | — | ||||||||||||||||||
Liabilities with banks and international organizations | 227,214 | — | — | — | — | 227,214 | ||||||||||||||||||
Other liabilities | — | — | — | — | — | — | ||||||||||||||||||
Total Interest-Bearing Liabilities | 3,839,395 | 314 | 403,950 | 569,505 | — | 4,813,164 | ||||||||||||||||||
Asset (Liability) Gap | (1,227,331 | ) | 402,503 | 738,717 | (567,325 | ) | — | (703,436 | ) | |||||||||||||||
Cumulative Asset/Liability Gap | (1,277,331 | ) | (874,828 | ) | (136,111 | ) | (703,436 | ) | (703,436 | ) | ||||||||||||||
Cumulative sensitivity gap as a percentage of total interest-earning assets | (31.08 | )% | (21.29 | )% | (3.31 | )% | (17.12 | )% | (17.12 | )% |
(1) | Loan amounts are stated before deducting the allowance for loan losses. Non-accrual loans are included with loans as interest- earning asset. | |
(2) | Includes instruments issued by the Central Bank. |
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Item 4A. | Unresolved Staff Comments |
Item 5. | Operating and Financial Review and Prospects |
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Year Ended December 31, | ||||||||||||
2007 | 2008 | 2009 | ||||||||||
Banco Macro | ||||||||||||
Allowances/total loans | 2.2 | % | 3.7 | % | 3.9 | % | ||||||
Non-performing loans ratio | 1.6 | 2.6 | 3.3 | |||||||||
Allowances/lending (1) | 2.2 | % | 3.6 | % | 3.7 | % | ||||||
Non-performing lending ratio (2) | 1.5 | 2.6 | 3.2 | |||||||||
Financial System | ||||||||||||
Allowances/lending (1) | 3.0 | % | 3.0 | % | 3.8 | % | ||||||
Non-performing lending ratio (2) | 2.7 | 2.7 | 3.0 |
Source: Central Bank | ||
(1) | Includes loans, other receivables from financial transactions, financial leases, memorandum accounts—other guarantees provided and unused portion of loans granted (included in Debtors Rating Standards). | |
(2) | Non-performing lending includes all lending to borrowers classified as “3- troubled/medium risk”, “4-with high risk of insolvency/high risk”, “5-irrecoverable” and “6-irrecoverable According to Central Bank’s rules” under the Central Bank loan classification system. |
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Date | 8.50% Notes Due 2017 | 10.750% Argentine Peso-Linked Notes Due 2012 | ||||||
January 2008 | 9,500,000 | — | ||||||
September 2008 | 10,850,000 | — | ||||||
October 2008 | 12,375,000 | 1,500,000 | ||||||
November 2008 | 1,300,000 | 6,160,000 | ||||||
December 2008 | 8,530,000 | 800,000 | ||||||
February 2009 | — | 200,000 | ||||||
April 2009 | — | 4,500,000 | ||||||
May 2009 | 1,050,000 | 21,020,000 | ||||||
August 2009 | — | 1,825,000 | ||||||
Total repurchased | 43,605,000 | 36,005,000 | ||||||
Total cancelled | 43,605,000 | 36,005,000 | ||||||
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• | Consumer spending: after almost two years of recession, consumption is beginning to recover. In addition, consumers see our products (personal and credit card loans) as a way of hedging against inflation. | |
• | Export levels: although the trade balance will be lower than the one registered in 2009, an increase in the level of exports due to commodities and the automobile sector is expected. | |
• | Soybean harvest record: after two years of low harvest levels, 2010 appears as an extraordinary year for this commodity. In addition, the agricultural sector works as an engine for regional economies. | |
• | High inflation: high levels of public expenditure lead to the aggregate demand growing faster than the offer, thus producing an upward adjustment in prices. |
• | Low cost of funds; high levels of liquidity. As a result of our low cost of funds and our high level of liquidity, a key driver of our results is our ability to increase our lending within the scope of our credit policy, as such lending is always at a positive margin. Therefore, we have seen increases in our gross intermediation margin as our private sector lending has increased. |
• | Growth prospects subject to development of inflation and long-term fixed rate lending. We believe that the main obstacle preventing a faster recovery of Argentina’s private sector lending has been the uncertain outlook on long-term inflation, which has a significant impact on both the supply of and demand for long-term loans as borrowers try to hedge against inflation risk by borrowing at fixed rates while lenders hedge against inflation risk by offering loans at floating rates. As a result, most of the increase in the volume of private loans in the financial system until December 31, 2009 was concentrated in short-term products. For example, the ratio of personal loans, overdrafts and documents to GDP has increased from 3% in June 2003 to 6% as of December 31, 2009 while long-term loans represented by mortgages and secured loans have decreased from 3% to 2% of GDP during the same period (despite substantial GDP growth during the period). |
• | Stable intermediation spread. Based on the low banking penetration in Argentina, we believe that the expected loan growth mix, with a larger participation of consumer loans compared to commercial loans, will improve spreads. However, price competition could offset this effect and intermediation spreads might remain stable. |
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2007 | 2008 | 2009 | ||||||||||
(in thousands of pesos) | ||||||||||||
Financial income | 1,890,422 | 3,029,860 | 3,860,452 | |||||||||
Financial expenses | (805,265 | ) | (1,342,062 | ) | (1,511,607 | ) | ||||||
Gross intermediation margin | 1,085,157 | 1,687,798 | 2,348,845 | |||||||||
Provision for loan losses | (94,717 | ) | (297,606 | ) | (197,512 | ) | ||||||
Service charge income | 662,326 | 891,700 | 1,050,275 | |||||||||
Service charge expenses | (150,282 | ) | (172,401 | ) | (226,599 | ) | ||||||
Administrative expenses | (997,466 | ) | (1,270,002 | ) | (1,522,420 | ) | ||||||
Net other income | 84,610 | 85,122 | (36,317 | ) | ||||||||
Income before income tax | 589,628 | 924,611 | 1,416,272 | |||||||||
Income tax | (92,345 | ) | (261,207 | ) | (659,250 | ) | ||||||
Minority Interest | (2,083 | ) | (3,354 | ) | (5,092 | ) | ||||||
Net income | 495,200 | 660,050 | 751,930 | |||||||||
2007 (1) | 2008 (1) | 2009 | ||||||||||
(in thousands of pesos) | ||||||||||||
Interest on cash and due from banks | 19,917 | 7,010 | 363 | |||||||||
Interest on loans to the financial sector | 32,157 | 15,584 | 7,491 | |||||||||
Interest on overdrafts | 177,490 | 357,215 | 340,275 | |||||||||
Interest on documents (3) | 103,428 | 184,852 | 195,069 | |||||||||
Interest on mortgage loans | 68,065 | 97,057 | 104,016 | |||||||||
Interest on pledge loans (2) | 51,480 | 64,499 | 55,081 | |||||||||
Interest on credit card loans | 55,665 | 117,952 | 183,369 | |||||||||
Interest on other loans (4) | 578,737 | 1,032,837 | 1,243,788 | |||||||||
Interest on other receivables from financial intermediation | 18,471 | 14,416 | 74 | |||||||||
Income from government and private securities, net | 488,757 | 641,299 | 1,370,981 | |||||||||
Income from guaranteed loans (6) | 35,043 | 37,043 | 7,232 | |||||||||
Net income from options | 1,604 | 261 | — | |||||||||
CER (Indexation by benchmark stabilization coefficient) (5) | 78,065 | 70,477 | 18,652 | |||||||||
CVS (Indexation by salary variation coefficient) | 1,605 | 818 | 728 | |||||||||
Difference in quoted prices of gold and foreign currency | 48,823 | 143,094 | 133,731 | |||||||||
Other (7) | 131,115 | 245,446 | 199,602 | |||||||||
Total financial income | 1,890,422 | 3,029,860 | 3,860,452 | |||||||||
(1) | See note 4.2 to our audited consolidated financial statements for the year ended December 31, 2009. | |
(2) | Includes primarily income on secured car loans. | |
(3) | Includes income on factoring, check cashing advances and loans with promissory notes. | |
(4) | Includes interest on loans not classified under prior headings. | |
(5) | Includes CER accrued for all the assets subject to adjustment by CER. | |
(6) | Includes income on loans to the Argentine government that were issued in exchange for federal and provincial government bonds. | |
(7) | Principally results from forward foreign currency transactions and result from lending activity. |
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December 31 2007 | December 31 2008 | December 31 2009 | ||||||||||
vs. | vs. | vs. | ||||||||||
December 31 2006 | December 31 2007 | December 31 2008 | ||||||||||
Changes in financial income | Increase (Decrease) | Increase (Decrease) | Increase (Decrease) | |||||||||
(in thousands of pesos) | ||||||||||||
Due to changes in the volume of interest-earning assets | 622,135 | 575,552 | 415,524 | |||||||||
Due to changes in average nominal rates of interest-earning assets | 57,122 | 373,687 | 556,974 | |||||||||
Net change | 679,257 | 949,239 | 972,498 | |||||||||
December 31 2007 | December 31 2008 | December 31 2009 | ||||||||||
vs. | vs. | vs. | ||||||||||
December 31 2006 | December 31 2007 | December 31 2008 | ||||||||||
Changes in financial income due to changes in volume | Increase (Decrease) | Increase (Decrease) | Increase (Decrease) | |||||||||
(in thousands of pesos) | ||||||||||||
Government securities | 156,313 | 51,613 | 353,671 | |||||||||
Loans to private and financial sector | 432,609 | 546,098 | 53,321 | |||||||||
Loans to public sector | 4,905 | (635 | ) | (36,236 | ) | |||||||
Other assets | 28,308 | (21,524 | ) | 44,768 | ||||||||
Net change | 622,135 | 575,552 | 415,524 | |||||||||
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December 31 2007 | December 31 2008 | December 31 2009 | ||||||||||
vs. | vs. | vs. | ||||||||||
December 31 2006 | December 31 2007 | December 31 2008 | ||||||||||
Changes in financial income due to changes in nominal rates | Increase (Decrease) | Increase (Decrease) | Increase (Decrease) | |||||||||
(in thousands of pesos) | ||||||||||||
Government securities | 6,612 | 45,829 | 318,338 | |||||||||
Loans to private and financial sector | 72,404 | 263,966 | 214,313 | |||||||||
Loans to public sector | (46,757 | ) | (12,882 | ) | (22,375 | ) | ||||||
Other assets | 24,863 | 76,774 | 1,948 | |||||||||
Net change | 57,122 | 373,687 | 556,974 | |||||||||
2007 (1) | 2008 (1) | 2009 | ||||||||||
(in thousands of pesos) | ||||||||||||
Interest on checking accounts | 19,968 | 17,708 | 16,423 | |||||||||
Interest on savings accounts | 11,372 | 14,534 | 17,094 | |||||||||
Interest on time deposits | 457,395 | 933,881 | 1,146,013 | |||||||||
Interest on interfinancing received loans (received call) | 4,608 | 3,909 | 2,679 | |||||||||
Interest on other financing from the financial institutions | 226 | 28 | 62 | |||||||||
Interest on other liabilities from financial intermediation (2) | 70,706 | 91,083 | 81,510 | |||||||||
Interest on subordinated corporate bonds | 49,858 | 47,523 | 54,874 | |||||||||
Other interest | 9,768 | 8,762 | 2,692 | |||||||||
Net loss from options | — | — | 1 | |||||||||
CER adjustment (3) | 43,717 | 32,946 | 4,341 | |||||||||
Contribution to Deposit Guarantee Fund | 20,182 | 25,945 | 30,038 | |||||||||
Other (4) | 117,465 | 165,743 | 155,880 | |||||||||
Total financial expenses | 805,265 | 1,342,062 | 1,511,607 | |||||||||
(1) | See note 4.2 to our audited consolidated financial statements for the year ended December 31, 2009. | |
(2) | Includes lines of credit from other banks, repurchase agreements, liquidity assistance from the Central Bank. | |
(3) | Includes CER accrued for all the liabilities subject to adjustment by CER. | |
(4) | Mainly resulting from turn over tax. |
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December 31 2007 | December 31 2008 | December 31 2009 | ||||||||||
vs. | vs. | vs. | ||||||||||
December 31 2006 | December 31 2007 | December 31 2008 | ||||||||||
Increase (Decrease) | Increase (Decrease) | Increase (Decrease) | ||||||||||
(in thousands of pesos) | ||||||||||||
Financial Expense due to changes in the volume of interest-bearing liabilities | 291,394 | 266,157 | 111,170 | |||||||||
Financial Expense due to changes in average nominal rates of interest-bearing liabilities | 51,275 | 218,692 | 31,052 | |||||||||
Net change | 342,669 | 484,849 | 142,222 | |||||||||
December 31 2007 | December 31 2008 | December 31 2009 | ||||||||||
vs. | vs. | vs. | ||||||||||
December 31 2006 | December 31 2007 | December 31 2008 | ||||||||||
Changes in financial expense due to changes in volume | Increase (Decrease) | Increase (Decrease) | Increase (Decrease) | |||||||||
(in thousands of pesos) | ||||||||||||
Deposits | 153,069 | 276,410 | 154,251 | |||||||||
Borrowings from Central Bank and other financial institutions | 21,537 | (8,515 | ) | (24,951 | ) | |||||||
Corporate Bonds | 101,188 | 14,163 | (3,004 | ) | ||||||||
Other liabilities | 15,600 | (16,265 | ) | (15,126 | ) | |||||||
Net change | 291,394 | 266,157 | 111,170 | |||||||||
December 31 2007 | December 31 2008 | December 31 2009 | ||||||||||
vs. | vs. | vs. | ||||||||||
December 31 2006 | December 31 2007 | December 31 2008 | ||||||||||
Changes in financial expense due to changes in nominal rates | Increase (Decrease) | Increase (Decrease) | Increase (Decrease) | |||||||||
(in thousands of pesos) | ||||||||||||
Deposits | 36,596 | 193,460 | 57,451 | |||||||||
Borrowings from Central Bank and other financial institutions | 9,472 | 1,545 | (11,833 | ) | ||||||||
Corporate Bonds | 1,711 | (1,723 | ) | 108 | ||||||||
Other liabilities | 3,496 | 25,410 | (14,674 | ) | ||||||||
Net change | 51,275 | 218,692 | 31,052 | |||||||||
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2007 (1) | 2008 (1) | 2009 | ||||||||||
(in thousands of pesos) | ||||||||||||
Service charges on deposit accounts | 398,569 | 587,426 | 669,668 | |||||||||
Debit and credit card income | 95,644 | 153,210 | 171,746 | |||||||||
Other fees related to foreign trade | 15,947 | 19,261 | 26,682 | |||||||||
Credit-related fees | 53,995 | 63,669 | 60,741 | |||||||||
Capital markets and securities activities | 2,951 | 2,517 | 1,721 | |||||||||
Lease of safe-deposit boxes | 12,904 | 16,282 | 21,015 | |||||||||
Fees related to guarantees | 2,789 | 1,750 | 629 | |||||||||
Other (2) | 79,527 | 47,585 | 98,073 | |||||||||
Total service charge income | 662,326 | 891,700 | 1,050,275 | |||||||||
(1) | See note 4.2 to our audited financial statements for the year ended December 31, 2009. | |
(2) | Includes insurance income. |
2007(1) | 2008 (1) | 2009 | ||||||||||
(in thousands of pesos) | ||||||||||||
Personnel expenses | 589,021 | 798,236 | 966,963 | |||||||||
Directors and statutory auditors fees | 37,695 | 26,941 | 36,413 | |||||||||
Other professional fees | 42,428 | 55,012 | 65,533 | |||||||||
Advertising and publicity | 50,343 | 53,178 | 46,861 | |||||||||
Taxes | 53,914 | 70,994 | 79,784 | |||||||||
Depreciation of equipment | 42,723 | 50,543 | 53,993 | |||||||||
Amortization of organization costs | 17,923 | 25,557 | 33,317 | |||||||||
Maintenance, conservation and repair expenses | 36,930 | 48,251 | 68,620 | |||||||||
Security services | 35,487 | 42,241 | 47,668 | |||||||||
Electric power and communications | 32,206 | 37,240 | 46,054 | |||||||||
Lease payments | 18,686 | 21,769 | 34,638 | |||||||||
Insurance | 6,110 | 6,090 | 7,331 | |||||||||
Stationery and office supplies | 14,739 | 15,335 | 11,817 | |||||||||
Other | 19,261 | 18,615 | 23,428 | |||||||||
Total administrative expenses | 997,466 | 1,270,002 | 1,522,420 | |||||||||
(1) | See note 4.2 to our audited consolidated financial statements for the year ended December 31, 2009. |
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As of December 31, | ||||||||||||
2007 | 2008 | 2009 | ||||||||||
(in thousands of pesos, except | ||||||||||||
ratios and percentages) | ||||||||||||
Calculation of excess capital: | ||||||||||||
Allocated to assets at risk | 749,855 | 939,296 | 970,578 | |||||||||
Allocated to Bank premises and equipment, intangible assets and equity investment assets | 95,729 | 87,113 | 95,705 | |||||||||
Market risk(1) | 127,445 | 49,899 | 39,764 | |||||||||
Interest rate risk | 102,343 | 204,510 | 201,451 | |||||||||
Government sector and securities in investment account | 38,609 | 60,780 | 36,544 | |||||||||
Incremental requirement | 36,202 | — | — | |||||||||
Required minimum capital under Central Bank Rules | 1,150,183 | 1,341,598 | 1,344,042 | |||||||||
Basic net worth | 2,697,416 | 2,688,679 | 3,193,973 | |||||||||
Complementary net worth | 461,405 | 625,756 | 691,107 | |||||||||
Deductions | (189,145 | ) | (200,610 | ) | (176,784 | ) | ||||||
Total capital under Central Bank Rules | 2,969,676 | 3,113,825 | 3,708,296 | |||||||||
Excess capital | 1,819,493 | 1,772,227 | 2,364,254 | |||||||||
Selected capital and liquidity ratios: | ||||||||||||
Regulatory capital/risk weighted assets | 26.81 | % | 22.95 | % | 27.38 | % | ||||||
Average shareholders’ equity as a percentage of average total assets | 13.91 | % | 12.71 | % | 12.75 | % | ||||||
Total liabilities as a multiple of total shareholders’ equity | 6.27 | x | 6.95 | x | 7.00 | x | ||||||
Cash as a percentage of total deposits | 22.94 | % | 22.26 | % | 26.98 | % | ||||||
Liquid assets as a percentage of total deposits (2) | 52.01 | % | 48.80 | % | 53.70 | % | ||||||
Loans as a percentage of total assets | 50.60 | % | 50.29 | % | 41.31 | % |
(1) | Average Var for December. | |
(2) | Liquid assets include cash, LEBACs, NOBACs, interbanking loans and overnight loans to highly rated companies. |
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As of December 31 | ||||||||||||
2007 (1) | 2008 (1) | 2009 | ||||||||||
(in thousands of pesos) | ||||||||||||
Deposits | ||||||||||||
From the non-financial government sector | 1,774,121 | 3,937,961 | 3,613,924 | |||||||||
From the financial sector | 13,310 | 22,438 | 14,052 | |||||||||
From the non-financial private sector and foreign residents | ||||||||||||
Checking accounts | 2,599,682 | 2,581,060 | 3,275,826 | |||||||||
Savings accounts | 2,780,350 | 2,716,913 | 3,445,577 | |||||||||
Time deposits | 5,907,005 | 6,031,882 | 7,711,471 | |||||||||
Investment accounts (2) | 63,063 | 155,936 | 52,286 | |||||||||
Other (3) | 391,176 | 321,020 | 416,503 | |||||||||
Accrued interest, adjustments, foreign exchange and quoted price differences payable | 62,442 | 61,147 | 63,227 | |||||||||
Borrowing from Central Bank and financial institutions | ||||||||||||
Central Bank | 347,896 | 302,760 | 1,897 | |||||||||
Banks and international institutions | 164,829 | 232,422 | 227,214 | |||||||||
Financing received from Argentine financial institutions | 160,296 | 73,806 | 189,971 | |||||||||
Other | 493,912 | 627,140 | 733,943 | |||||||||
Minority interest in subsidiaries | 12,640 | 15,568 | 20,684 | |||||||||
Non-subordinated Corporate Bonds | 799,537 | 724,873 | 616,735 | |||||||||
Subordinated Corporate Bonds | 490,695 | 521,681 | 572,473 | |||||||||
Shareholders’ equity | 2,713,020 | 2,821,911 | 3,358,801 | |||||||||
Total funding | 18,773,974 | 21,148,518 | 24,314,584 | |||||||||
(1) | See note 4.2 to our audited consolidated financial statements for the year ended December 31, 2009. | |
(2) | Time deposit payable at the option of the depositor. | |
(3) | Includes, among others, expired time deposits and judicial deposits. |
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• | Inclusion of nonfinancial assets and nonfinancial liabilities, which for the Bank primarily related to other real estate owned. | |
• | Estimation of fair value when the volume of level of activity for an asset or liability has significantly decreased in relation to normal market activity; additional guidance to determine when a transaction is not orderly; and enhanced disclosure of fair value measurements. |
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a) | Quoted prices for similar assets or liabilities in active markets; | ||
b) | Quoted prices for identical or similar assets or liabilities in less-active markets; | ||
c) | Pricing models whose inputs are observable for substantially the full term of the asset or liability; and | ||
d) | Pricing models whose inputs are derived principally from or corroborated by observable market data through correlation or other means for substantially the full term of the asset or liability. |
• | The use of bank services by state and private employees and retirees through the opening of savings accounts. |
• | Granting of personal loans to state and private employees and retirees. |
• | The delivery of limited-risk credit cards as a result of diversification and the automatic debit of the minimum account payment. |
• | Marketing of other types of services, such as insurance, interbank transfers, service payments, etc. |
• | Creating an excellent source of resources with very low volatility and costs. |
• | Expanding the portfolio related to loans distributed among a significant number of people, the risk in this type of financing being relatively low. |
• | Applying the market’s lowest rates in personal loans and credit cards, thus enabling the systematic growth of loan stock. |
• | Fixing strategic agreements with companies to allow the Bank to place commercial loans in companies with profitable projects and growth prospects, and providing new individuals’ accounts simultaneously to allow them to receive their salaries. |
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Payments due by period | ||||||||||||||||||||
Less than | After | |||||||||||||||||||
Total | 1 year | 1-3 years | 3-5 years | 5 years | ||||||||||||||||
(in thousands of pesos) | ||||||||||||||||||||
Contractual obligations | ||||||||||||||||||||
Central Bank | 1,897 | 1,363 | 109 | — | 425 | |||||||||||||||
Banks and international institutions | 227,214 | 227,214 | — | — | — | |||||||||||||||
Corporate Bonds | 616,735 | 15,719 | 197,066 | — | 403,950 | |||||||||||||||
Financing received from Argentine financial institutions | 189,971 | 149,122 | 8,403 | 10,621 | 21,825 | |||||||||||||||
Other | 733,943 | 652,330 | 4,528 | 1,398 | 75,687 | |||||||||||||||
Operating leases | 48,700 | 20,100 | 19,191 | 5,392 | 4,017 | |||||||||||||||
Subordinated corporate bonds | 572,473 | 2,968 | — | — | 569,505 | |||||||||||||||
Total contractual obligations | 2,390,933 | 1,068,816 | 229,297 | 17,411 | 1,075,409 | |||||||||||||||
Commercial commitments | ||||||||||||||||||||
Lines of credit | 29,449 | 29,449 | — | — | — | |||||||||||||||
Guarantees | 216,039 | 54,853 | 50,391 | 12,683 | 98,112 | |||||||||||||||
Standby letters of credit | 221,226 | 215,950 | 5,276 | — | — | |||||||||||||||
Total commercial commitments | 466,714 | 300,252 | 55,667 | 12,683 | 98,112 | |||||||||||||||
Item 6. | Directors, Senior Management and Employees |
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Year of | ||||||||
Year First | Expiration of | |||||||
Name | Position | Age | Appointed | Term | ||||
Jorge Horacio Brito | Chairman | 57 | 2002 | 2011 | ||||
Delfín Jorge Ezequiel Carballo | Vice Chairman | 57 | 2002 | 2011 | ||||
Jorge Pablo Brito | Director | 30 | 2002 | 2011 | ||||
Marcos Brito | Director | 27 | 2007 | 2011 | ||||
Juan Pablo Brito Devoto | Director | 49 | 2002 | 2010 | ||||
Roberto Julio Eilbaum | Director | 65 | 2002 | 2010 | ||||
Luis Carlos Cerolini | Director | 55 | 2002 | 2010 | ||||
Carlos Enrique Videla | Director | 64 | 2002 | 2009 | ||||
Alejandro Macfarlane | Director | 44 | 2005 | 2009 | ||||
Guillermo Eduardo Stanley | Director | 61 | 2006 | 2009 | ||||
Constanza Brito | Director | 28 | 2007 | 2009 | ||||
Mario Eduardo Bartolomé | Alternate director | 64 | 2004 | 2011 | ||||
Ernesto Eduardo Medina | Alternate director | 42 | 2002 | 2011 | ||||
Delfin Federico Ezequiel Carballo | Alternate director | 25 | 2009 | 2011 | ||||
Fernando Raúl García Pulles | Alternate director | 54 | 2007 | 2011 |
Year of | ||||||||
Year First | Expiration of | |||||||
Name | Position | Age | Appointed | Term | ||||
Jorge Horacio Brito | Chairman | 57 | 2002 | 2011 | ||||
Delfín Jorge Ezequiel Carballo | Vice Chairman | 57 | 2002 | 2011 | ||||
Jorge Pablo Brito | Director | 30 | 2002 | 2011 | ||||
Marcos Brito | Director | 27 | 2007 | 2011 | ||||
Juan Pablo Brito Devoto | Director | 50 | 2002 | 2010 | ||||
Roberto Julio Eilbaum | Director | 65 | 2002 | 2010 | ||||
Luis Carlos Cerolini | Director | 56 | 2002 | 2010 | ||||
Carlos Enrique Videla | Director | 65 | 2002 | 2012 | ||||
Alejandro Macfarlane | Director | 44 | 2005 | 2012 | ||||
Guillermo Eduardo Stanley | Director | 61 | 2006 | 2012 | ||||
Constanza Brito | Director | 28 | 2007 | 2012 | ||||
Rafael Magnanini (1) | Director | 51 | 2010 | 2012 | ||||
Mario Eduardo Bartolomé | Alternate director | 64 | 2004 | 2011 | ||||
Ernesto Eduardo Medina | Alternate director | 43 | 2002 | 2011 | ||||
Delfin Federico Ezequiel Carballo | Alternate director | 25 | 2009 | 2011 | ||||
Fernando Raúl García Pulles | Alternate director | 54 | 2007 | 2011 |
(1) | Pending Central Bank approval |
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Year First | ||||||
Names | Position | Age | Appointed | |||
Jorge Horacio Brito | Chief Executive Officer | 57 | 2002 | |||
Delfín Jorge Ezequiel Carballo | Chief Financial Officer | 57 | 2002 | |||
Juan Pablo Brito Devoto | Chief Accounting Officer | 49 | 2002 | |||
Jorge Pablo Brito | Coordinator of the Executive Committee | 30 | 2006 | |||
Guillermo Goldberg | Deputy general manager | 52 | 2005 | |||
Ernesto Eduardo Medina | Deputy general manager | 42 | 2007 | |||
Jorge Francisco Scarinci | Financial and Investor relations manager | 39 | 2006 | |||
Ana María Magdalena Marcet | Credit risk manager | 48 | 2002 | |||
Miguel Leon Gurfinkiel | Government portfolio manager | 59 | 2006 | |||
Horacio Ricardo Sistac | Corporate banking manager | 53 | 2005 | |||
Francisco Muro | Retail banking manager | 36 | 2008 | |||
Brian Anthony | Distribution and sales manager | 36 | 2005 | |||
Eduardo Roque Covello | Operations manager | 52 | 2004 | |||
Máximo Eduardo Lanusse | Administration manager | 36 | 2007 | |||
Daniel Hugo Violatti | Accountancy and Tax manager | 47 | 2003 | |||
Constanza Brito | Human Resources and Organization and processes manager | 28 | 2005 | |||
Carmen Esther Estévez | Internal audit manager | 52 | 2002 | |||
Ernesto López | Legal manager | 37 | 2008 | |||
María Milagro Medrano | Institutional relations manager | 33 | 2002 | |||
Gerardo Adrian Alvarez | Security and Fraud control manager | 40 | 2008 | |||
Miguel Angel Fernandez | Systems manager | 53 | 2009 | |||
Alberto Figueroa | Management Control and Relationship with Central Bank manager | 49 | 2009 | |||
Guillermo Powell | Systems Security Manager | 50 | 2009 |
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Year of | Current | |||||||
Name | Position | Age | Appointment | Term Ends | ||||
Alejandro Almarza | Syndic | 54 | 2009 | April 2010 | ||||
Santiago Marcelo Maidana | Syndic | 79 | 2009 | April 2010 | ||||
Leonardo Pablo Cortigiani | Syndic | 41 | 2009 | April 2010 | ||||
Carlos Javier Piazza | Alternate syndic | 51 | 2009 | April 2010 | ||||
Horacio Della Rocca | Alternate syndic | 57 | 2009 | April 2010 | ||||
Alejandro Carlos Piazza | Alternate syndic | 55 | 2009 | April 2010 |
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Year of | Current | |||||||
Name | Position | Age | Appointment | Term Ends | ||||
Alejandro Almarza | Syndic | 55 | 2010 | April 2011 | ||||
Santiago Marcelo Maidana | Syndic | 80 | 2010 | April 2011 | ||||
Leonardo Pablo Cortigiani | Syndic | 41 | 2010 | April 2011 | ||||
Carlos Javier Piazza | Alternate syndic | 51 | 2010 | April 2011 | ||||
Horacio Della Rocca | Alternate syndic | 57 | 2010 | April 2011 | ||||
Alejandro Carlos Piazza | Alternate syndic | 55 | 2010 | April 2011 |
Year of | ||||||||
Name | Position | Age | Appointment | Status | ||||
Guillermo Eduardo Stanley | Chairman | 61 | 2007 | Independent | ||||
Carlos Enrique Videla | Vice Chairman | 64 | 2007 | Independent | ||||
Alejandro Macfarlane | Member | 44 | 2007 | Independent | ||||
Fernando Raúl García Pulles | Alternate Member | 54 | 2007 | Independent |
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Name | Position | |
Jorge Horacio Brito | Chairman | |
Delfín Jorge Ezequiel Carballo | Vice Chairman | |
Jorge Pablo Brito | Director — coordinator |
Name | Position | |
Jorge Pablo Brito | Director | |
Juan Pablo Brito Devoto | Director | |
Carlos Enrique Videla | Director — Independent | |
Carmen Estévez | Internal audit manager — coordinator |
Name | Position | |
Jorge Pablo Brito | Director | |
Juan Pablo Brito Devoto | Director | |
Guillermo Goldberg | Deputy general manager | |
Ernesto Eduardo Medina | Deputy general manager | |
Miguel Angel Fernandez | Systems manager — coordinator | |
Eduardo Roque Covello | Operations manager | |
Brian Anthony | Distribution and Sales Manager | |
Constanza Brito | Human Resources and Organization and Processes manager | |
María Milagro Medrano | Institutional relations manager | |
Daniel Hugo Violatti | Accountancy and Tax manager | |
Guillermo Powell | System’s security manager |
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Name | Position | |
Jorge Horacio Brito | Chairman | |
Delfín Jorge Ezequiel Carballo | Vice Chairman | |
Jorge Pablo Brito | Director | |
Ana M. Marcet | Credit Risk manager — coordinator |
Name | Position | |
Delfin Jorge Ezequiel Carballo | Vice Chairman | |
Jorge Pablo Brito | Director | |
Roberto Eilbaum | Director | |
Guillermo Goldberg | Deputy general manager | |
Jorge Scarinci | Financial and Investor relations manager — coordinator | |
Brian Anthony | Distribution and Sales manager | |
Horacio Sistac | Corporate banking manager | |
Francisco Muro | Retail banking manager | |
Marcos Brito | Director |
Name | Position | |
Jorge Pablo Brito | Director | |
Guillermo Goldberg | Deputy general manager | |
Ernesto Medina | Deputy general manager | |
Alberto Figueroa | Management Control and Relationship with Central Bank manager |
Name | Position | |
Luis Cerolini | Director | |
Roberto Eilbaum | Director | |
Ernesto Medina | Deputy general manager | |
Alfredo Cobos | Responsible for Anti-money laundering sector — coordinator | |
Alberto Figueroa | Management Control and Relationship with Central Bank manager |
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Name | Position | |
Luis Cerolini | Director | |
Jorge Pablo Brito | Director | |
Juan Pablo Brito Devoto | Director | |
Ernesto López | Legal manager-coordinator | |
Ana M. Marcet | Credit Risk manager | |
Marcos Brito | Director |
As of December 31, | ||||||||||||
Employees | 2007 | 2008 | 2009 | |||||||||
Headquarters | 2,713 | 2,805 | 2,775 | |||||||||
Branches | 5,201 | 5,168 | 5,088 | |||||||||
Total | 7,914 | 7,973 | 7,863 | |||||||||
Number of | Number of | Percentage of | Percentage of | |||||||||||||
Class A | Class B | Capital stock | Voting rights | |||||||||||||
Shareholder Name | shares owned | shares owned | (%) | (%) | ||||||||||||
Jorge Horacio Brito | 5,292,143 | 117,431,806 | 20.64 | % | 22.50 | % | ||||||||||
Delfín Jorge Ezequiel Carballo | 4,895,416 | 108,408,833 | 19.06 | % | 20.78 | % | ||||||||||
Juan Pablo Brito Devoto | 281,590 | 6,310,409 | 1.11 | % | 1.21 | % | ||||||||||
Jorge Pablo Brito | — | 500,000 | 0.08 | % | 0.08 | % | ||||||||||
Luis Carlos Cerolini | — | 168,500 | 0.03 | % | 0.03 | % | ||||||||||
Carlos Enrique Videla | 5,874 | 72,843 | 0.01 | % | 0.02 | % | ||||||||||
Total | 10,475,023 | 232,892,391 | 40.93 | % | 44.62 | % | ||||||||||
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Number of | Number of | Percentage of | Percentage of | |||||||||||||
Class A | Class B | Capital stock | Voting rights | |||||||||||||
Shareholder Name | shares owned | shares owned | (%) | (%) | ||||||||||||
Jorge Horacio Brito | 5,292,143 | 117,431,806 | 20.64 | % | 22.50 | % | ||||||||||
Delfín Jorge Ezequiel Carballo | 4,895,416 | 108,408,833 | 19.06 | % | 20.78 | % | ||||||||||
Juan Pablo Brito Devoto | 281,590 | 6,310,409 | 1.11 | % | 1.21 | % | ||||||||||
Jorge Pablo Brito | — | 372,700 | 0.06 | % | 0.06 | % | ||||||||||
Luis Carlos Cerolini | — | 137,000 | 0.02 | % | 0.02 | % | ||||||||||
Carlos Enrique Videla | 5,874 | 34,927 | 0.01 | % | 0.01 | % | ||||||||||
Total | 10,475,023 | 232,695,675 | 40.90 | % | 44.58 | % | ||||||||||
Item 7. | Major Shareholders and Related Party Transactions |
Number of | Number of | Percentage of | Percentage of | |||||||||||||||||
Class A | Class B | capital stock | Voting rights | |||||||||||||||||
Shareholder Name | shares owned | shares owned | Total | (%) | (%) | |||||||||||||||
ANSES | — | 182,053,609 | 182,053,609 | 30.62 | %(1) | 28.47 | % | |||||||||||||
Jorge Horacio Brito | 5,292,143 | 117,431,806 | 122,723,949 | 20.64 | % | 22.50 | % | |||||||||||||
Delfín Jorge Ezequiel Carballo | 4,895,416 | 108,408,833 | 113,304,249 | 19.06 | % | 20.78 | % | |||||||||||||
Other Shareholders | 1,048,111 | 175,355,250 | 176,403,361 | 29.68 | %(2) | 28.25 | % | |||||||||||||
Total | 11,235,670 | 583,249,498 | 594,485,168 | 100.00 | % | 100.00 | % | |||||||||||||
(1) | Although ANSES holds capital stock for up to 30.62%, pursuant to section 8 of Law No. 26,425 and its cross-reference to section 76 of Law No. 24,241, such shareholder’s voting rights are limited to 5%. In the shareholders meetings held on April 21, May 12 and 27, 2009, ANSES made reserve of the right to vote without such limit. | |
(2) | The 20.95% of capital stock is held in the form of ADSs issued by The Bank of New York. |
Number of | Number of | Percentage of | Percentage of | |||||||||||||||||
Class A | Class B | capital stock | Voting rights | |||||||||||||||||
Shareholder Name | shares owned | shares owned | Total | (%) | (%) | |||||||||||||||
ANSES | — | 182,210,297 | 182,210,297 | 30.65 | %(1) | 28.50 | % | |||||||||||||
Jorge Horacio Brito | 5,292,143 | 117,431,806 | 122,723,949 | 20.64 | % | 22.50 | % | |||||||||||||
Delfín Jorge Ezequiel Carballo | 4,895,416 | 108,408,833 | 113,304,249 | 19.06 | % | 20.78 | % | |||||||||||||
Other Shareholders | 1,048,111 | 175,198,562 | 176,246,673 | 29.65 | %(2) | 28.22 | % | |||||||||||||
Total | 11,235,670 | 583,249,498 | 594,485,168 | 100.00 | % | 100.00 | % | |||||||||||||
(1) | Although ANSES holds capital stock for up to 30.65%, pursuant to section 8 of Law No. 26,425 and its cross-reference to section 76 of Law No. 24,241, such shareholder’s voting rights are limited to 5%. In the shareholders meetings held on April 21, May 12 and 27, 2009 and April 6, 2010 ANSES made reserve of the right to vote without such limit. | |
(2) | The 21.66% of capital stock is held in the form of ADSs issued by The Bank of New York. |
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Outstanding Capital | ||||||||
Date | Stock (Ps.) | Event | Major Shareholders | |||||
December 31, 2006 | 683,943,437 | Jorge H. Brito 19.81 % | ||||||
Delfín Jorge Ezequiel Carballo 17.72% | ||||||||
Juan Pablo Brito Devoto 0.10% | ||||||||
December 31, 2007 | 683,943,437 | Transfer of shares | Jorge H. Brito 18.87% (1) | |||||
Delfín Jorge Ezequiel Carballo 16.80% (1) | ||||||||
Juan Pablo Brito Devoto 0.10% (1) | ||||||||
February 29, 2008 | 683,978,973 | Capital Increase (2) | Jorge H. Brito 18.17% | |||||
Delfín Jorge Ezequiel Carballo 16.56% | ||||||||
Juan Pablo Brito Devoto 0.98% | ||||||||
December 31, 2008 | 683,978,973 | Transfer of shares (3) | Jorge H. Brito 18.17% | |||||
Delfín Jorge Ezequiel Carballo 16.56% | ||||||||
Juan Pablo Brito Devoto 0.98% | ||||||||
ANSES 26.62% | ||||||||
April 30, 2009 | 623,978,973 | Capital Decrease (4) | Jorge H. Brito 20.11% | |||||
Delfín Jorge Ezequiel Carballo 18.15% | ||||||||
Juan Pablo Brito Devoto 1.07% | ||||||||
ANSES 29.18% | ||||||||
September 30, 2009 | 594,485,168 | Capital Increase/Decrease (5) (6) | Jorge H. Brito 20.78% | |||||
Delfín Jorge Ezequiel Carballo 19.05% | ||||||||
Juan Pablo Brito Devoto 1.11% | ||||||||
ANSES 30.62% |
(1) | Monthly movements mainly from November 2006 to May 2007. | |
(2) | On June 4 and June 5, 2007, shareholders’ meetings for Banco Macro and Nuevo Banco Suquía, respectively, resolved to authorize the merger of Nuevo Banco Suquía into the Bank and an increase in the capital stock of the Bank’s from Ps.683,943,437 to Ps.683,978,973, issuing 35,536 Class B ordinary shares with a Ps. 1.00 par value each and the right to one vote per share, to be granted to the minority shareholders of Nuevo Banco Suquía, as a result of the merger. Although this capital increase was authorized in 2007, the new shares were issued on February 12, 2008. | |
(3) | On November 20, 2008, the Argentine Congress passed Law No. 26,425 unifying the Argentine pension and retirement system into a system publicly administered by the National Social Security Agency (Administración Nacional de la Seguridad Social), or ANSES, eliminating the retirement savings system previously administered by private pension funds under the supervision of a governmental agency. In accordance with the new law, private pension funds transferred all of the assets administered by them under the retirement savings system to ANSES. These transferred assets included shares of Banco Macro. ANSES is subject to the same investment rules, prohibitions and restrictions that were applicable to the Argentine private pension funds under the retirement savings system, including Sections 75 and 76 of Law 24,241, which limited the voting rights of private pension funds in shareholders’ meetings to 5% of the relevant company’s shares. | |
(4) | Related to the reduction of the capital stock by 60,000,000 registered Class B shares entitled to 1 vote each with a face value of Ps. 1 per share. These shares were included in the Bank’s portfolio and were acquired under section 68, Law No. 17,811, as a result of the macroeconomic context and fluctuations that the capital market was going through in general. On April 21, 2009, and after BCBA authorization, the Bank’s general ordinary and extraordinary shareholders’ meeting and special shareholders’ meeting approved the abovementioned capital reduction. During July 2009, the CNV authorized, the IGJ registered, and the Central Bank consented to the capital stock reduction. | |
(5) | Related to the capital increase through the issuance of Ps. 1,147,887 of new common, registered Class B shares with a face value of Ps. 1, each one entitled to one vote, delivered to the minority shareholders of former Nuevo Banco Bisel, in the merger process with such bank. | |
(6) | Related to the reduction of the capital stock by 30,641,692 Class B registered shares each one entitled to one vote, with a face value of ARS 1 per share. These shares were included in the Bank’s portfolio and were acquired under section 68, Law No. 17,811 for the same reasons mentioned in paragraph (4) above. On September 10, 2009, the Bank’s general ordinary and extraordinary shareholders’ meeting approved the abovementioned capital reduction subject to the BCBA’s consent. Subsequently, the BCBA and the CNV approved such capital reduction, the IGJ recorded it and the Central Bank acknowledged it. |
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Item 8. | Financial Information |
Aggregate | ||||||||||||
Dividend | ||||||||||||
Payment | ||||||||||||
Based on financial statements for year ended | Dividends per Share | (in millions of | ||||||||||
December 31, | Payment Dates | (in pesos) | pesos) | |||||||||
2003 | July 2004 | 0.10 | 60.9 | |||||||||
2004 | April 2005 | 0.05 | 30.4 | |||||||||
2005 | May 2006 | 0.10 | 68.4 | |||||||||
2006 | May 2007 | 0.15 | 102.6 | |||||||||
2007 | May 2008 | 0.25 | 171.0 | |||||||||
2008 | September 2009 | 0.25 | 149.9 | (2) | ||||||||
2009 | Pending | (1) | 0.35 | 208.1 |
(1) | For the fiscal year ended December 31, 2009, dividends approved by the shareholders’ meeting held on April 6, 2010 have been approved by the Central Bank on May 28, 2010. Payment date to be announced. | |
(2) | For the fiscal year ended December 31, 2008, dividends paid in cash were Ps. 148.3 million based on the outstanding number of shares on the payment dates. |
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Item 9. | The Offer and Listing |
Ps. per Class B Share | ||||||||
Banco Macro | High | Low | ||||||
2010: | ||||||||
April | 10.80 | 12.60 | ||||||
March | 12.65 | 10.25 | ||||||
February | 10.95 | 9.40 | ||||||
January | 11.60 | 10.30 | ||||||
2009: | ||||||||
December | 11.30 | 10.40 | ||||||
November | 12.65 | 10.30 | ||||||
2009 | 12.65 | 3.36 | ||||||
2008 | 8.46 | 2.12 | ||||||
2007 | 12.30 | 7.20 | ||||||
2006 | 9.51 | 5.32 | ||||||
2005 | 5.45 | 3.47 | ||||||
2009 | ||||||||
4th quarter | 12.65 | 9.20 | ||||||
3rd quarter | 9.29 | 5.90 | ||||||
2nd quarter | 6.55 | 3.74 | ||||||
1st quarter | 4.19 | 3.36 | ||||||
2008 | ||||||||
4th quarter | 6.15 | 2.12 | ||||||
3rd quarter | 6.60 | 5.00 | ||||||
2nd quarter | 8.46 | 5.37 | ||||||
1st quarter | 8.16 | 6.70 |
US$ per ADS | ||||||||
Banco Macro (1) | High | Low | ||||||
2010: | ||||||||
April | 32.31 | 27.83 | ||||||
March | 32.77 | 26.01 | ||||||
February | 28.88 | 23.74 | ||||||
January | 30.50 | 27.35 | ||||||
2009: | ||||||||
December | 29.97 | 27.12 | ||||||
November | 33.85 | 26.96 | ||||||
2009 | 33.85 | 8.72 | ||||||
2008 | 26.67 | 4.92 | ||||||
2007 | 39.11 | 22.40 | ||||||
2006 | 31.96 | 18.35 | ||||||
2009 | ||||||||
4th quarter | 33.85 | 23.95 | ||||||
3rd quarter | 24.46 | 15.19 | ||||||
2nd quarter | 17.27 | 9.63 | ||||||
1st quarter | 12.83 | 8.72 | ||||||
2008 | ||||||||
4th quarter | 19.11 | 4.92 | ||||||
3rd quarter | 21.62 | 15.44 | ||||||
2nd quarter | 26.67 | 16.61 | ||||||
1st quarter | 25.99 | 20.86 |
(1) | the Bank was first listed on NYSE in March 2006 |
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Item 10. | Additional Information |
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Exchange Rates | ||||||||||||||||
Average | Period- | |||||||||||||||
High | Low | (1) | end | |||||||||||||
2005 | 3.0523 | 2.8592 | 2.9230 | 3.0315 | ||||||||||||
2006 | 3.1072 | 3.0305 | 3.0741 | 3.0695 | ||||||||||||
2007 | 3.1797 | 3.0553 | 3.1156 | 3.1510 | ||||||||||||
2008 | 3.4537 | 3.0128 | 3.1614 | 3.4537 | ||||||||||||
2009 | 3.8545 | 3.4497 | 3.7301 | 3.7967 | ||||||||||||
November 2009 | 3.8192 | 3.7988 | 3.8110 | 3.8102 | ||||||||||||
December 2009 | 3.8205 | 3.7920 | 3.8070 | 3.7967 | ||||||||||||
January 2010 | 3.8230 | 3.7942 | 3.8042 | 3.8230 | ||||||||||||
February 2010 | 3.8677 | 3.8310 | 3.8512 | 3.8598 | ||||||||||||
March 2010 | 3.8763 | 3.8543 | 3.8627 | 3.8763 | ||||||||||||
April 2010 | 3.8862 | 3.8682 | 3.8761 | 3.8862 |
(1) | Based on daily closing price. |
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• | dealers in securities or currencies; |
• | insurance companies; |
• | tax-exempt organizations; |
• | traders in securities that elect to mark to market; |
• | certain financial institutions; |
• | partnerships or other pass-through entities; |
• | holders whose functional currency for U.S. federal income tax purposes is not the U.S. dollar; |
• | U.S. expatriates; |
• | holders that hold Class B shares or ADSs as part of a hedge, straddle, conversion transaction, constructive sale transaction or other integrated transaction; |
• | holders that own, directly, indirectly, or constructively, 10% or more of the total combined voting power of our shares; |
• | real estate investment trusts; or |
• | regulated investment companies. |
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• | an individual who is a citizen or resident of the United States; |
• | a corporation, or any other entity taxable as a corporation, created or organized in or under the laws of the United States, any state thereof or the District of Columbia; |
• | an estate the income of which is subject to U.S. federal income taxation regardless of its source; or |
• | a trust if (i) a court within the United States is able to exercise primary supervision over the administration of the trust and one or more U.S. persons have the authority to control all substantial decisions of the trust or (ii) the trust has a valid election in effect under applicable Treasury regulations to be treated as a U.S. person. |
• | the Class B shares generally will be includible in the gross income of a U.S. holder as ordinary income on the day on which the dividends are received by the U.S. holder; or |
• | the Class B shares represented by ADSs generally will be includible in the gross income of a U.S. holder as ordinary income on the day on which the dividends are received by the depositary; |
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(1) | we receive a distribution from, or dispose of all or part of our interest in, the lower-tier PFIC or | |
(2) | the U.S. holder disposes of all or part of its Class B shares or ADSs. |
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• | Resident individuals. Pursuant to a reasonable construction of the AITL: (i) income obtained from the sale, exchange or other disposition of our Class B shares or ADSs by resident individuals who do not sell or dispose of Argentine shares on a regular basis would not be subject to Argentine income tax; and (ii) although there still exists uncertainty regarding this issue, income obtained from the sale, exchange or other disposition of our Class B shares or ADSs by resident individuals who sell or dispose of Argentine shares on a regular basis should be exempt from Argentine income tax. |
• | Foreign beneficiaries. Capital gains obtained by non-residents or foreign entities from the sale, exchange or other disposition of our Class B shares or ADSs are exempt from income tax. Pursuant to a reasonable construction of the AITL, and although the matter is not completely free from doubt, such treatment should also apply to those foreign beneficiaries that qualify as offshore entities. |
• | Local entities. Capital gains obtained by Argentine entities (in general, entities organized or incorporated under Argentine law, certain traders and intermediaries, local branches of non-Argentine entities, sole proprietorships and individuals carrying on certain commercial activities in Argentina) derived from the sale, exchange or other disposition of our Class B shares or ADSs are subject to income tax at the rate of 35%. Losses arising from the sale of our Class B shares or ADSs can be offset against the same type of income. |
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• | our annual reports; and |
• | summaries of all notices of general meetings of shareholders and other reports and communications that are made generally available to our shareholders. |
Item 11. | Quantitative and Qualitative Disclosure About Market Risk |
2009 | ||||
Minimum | 39.8 | |||
Maximum | 67.2 | |||
Average | 56.8 | |||
December 2009 | 39.8 |
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2009 | ||||
Minimum | 198.3 | |||
Maximum | 261.2 | |||
Average | 227.8 | |||
December 2009 | 198.3 |
2009 | ||||
Minimum | 18.9 | |||
Maximum | 37.0 | |||
Average | 29.3 | |||
December 2009 | 22.0 |
Item 12. | Description of Securities Other Than Equity Securities |
Persons depositing or withdrawing shares must pay: | For: | |
US$5.00 (or less) per 100 ADSs (or portion thereof) | • Issuance of ADSs, including issuances resulting from a distribution of shares or rights or other property | |
• Cancellation of ADSs for the purpose of withdrawal, including if the deposit agreement terminates | ||
US$02 (or less) per ADS (or portion thereof) | • Any cash distribution to ADS registered holders | |
A fee equivalent to the fee that would be payable if securities distributed had been shares and the shares had been deposited for issuance of ADSs | • Distribution of securities distributed to holders of deposited securities which are distributed by the depositary to ADS registered holders |
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Persons depositing or withdrawing shares must pay: | For: | |
Registration fees | • Registration of transfer of shares on our stock registry to or from the name of the depositary or its nominee or the custodian, or its nominee when making deposits or withdrawals | |
Expenses of the depositary | • Cable, telex and facsimile transmissions | |
• Conversion of foreign currencies into U.S. dollars | ||
Taxes and other governmental charges the depositary or the custodian, have to pay on any ADS or share underlying an ADS | • As necessary | |
Any charges incurred by the depositary or its agents, including the custodian, for servicing the deposited securities | • As necessary |
Item 13. | Defaults, Dividend Arrearages and Delinquencies |
Item 14. | Material Modifications to the Rights of Security Holders and Use of Proceeds |
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a) | pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the Bank; |
b) | provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that our receipts and expenditures are being made only in accordance with authorizations of management and directors of the Bank; and |
c) | provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of the Bank’s assets that could have a material effect on the financial statements. |
BANCO MACRO S.A. and subsidiaries
Sarmiento 447
City of Buenos Aires
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Member of Ernst & Young Global
Partner
Item 16A. | Audit Committee Financial Expert |
Item 16B. | Code of Ethics |
Item 16C. | Principal Accountant Fees and Services |
For the year ended December 31, | ||||||||
Thousands of pesos | 2008 | 2009 | ||||||
Audit Fees | 9,097 | 9,380 | ||||||
Audit Related Fees | 442 | 240 | ||||||
Tax Fees | — | — | ||||||
All Other Fees | 35 | — | ||||||
Total | 9,574 | 9,620 | ||||||
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Item 16D. | Exemptions from the Listing Standards for Audit Committees |
Item 16E. | Purchases of Equity Securities by the Issuer and Affiliated Purchasers |
Maximum number of shares/pesos | ||||||||||||||||||||
Total number of | Total number of | that may yet be purchased under the | ||||||||||||||||||
shares | Average price | shares purchased as | program | |||||||||||||||||
Period | purchased | paid per share | part of the program | in Shares | in Ps. | |||||||||||||||
2008 | ||||||||||||||||||||
Month #1 January 1- 31 | 291,432 | 6.871 | 291,432 | 29,708,568 | 207,997,588 | |||||||||||||||
Month #2 February 1- 29 | 1,148,000 | 6.939 | 1,439,432 | 28,560,568 | 200,030,622 | |||||||||||||||
Month #3 March 1- 31 | — | — | 1,439,432 | 28,560,568 | 200,030,622 | |||||||||||||||
Month #4 April 1- 30 | — | — | 1,439,432 | 28,560,568 | 200,030,622 | |||||||||||||||
Month #5 May 1- 31 | 3,580,870 | 6.655 | 5,020,302 | 24,979,698 | 176,261,596 | |||||||||||||||
Month #6 June 1- 30 | 7,970,482 | 6.108 | 12,990,784 | 17,009,216 | 115,048,015 | |||||||||||||||
Month #7 July 1- 30 | 14,752,394 | 5.550 | 27,743,178 | 22,256,822 | 112,030,278 | |||||||||||||||
Month #8 August 1- 31 | 14,560,016 | 5.830 | 42,303,194 | 7,696,806 | 40,293,946 | |||||||||||||||
Month #9 September 1- 30 | 5,143,270 | 5.741 | 47,446,464 | 5,082,578 | 10,767,691 | |||||||||||||||
Month #10 October 1- 31 | 13,219,536 | 3.839 | 60,666,000 | 41,334,000 | 152,055,524 | |||||||||||||||
Month #11 November 1- 30 | 12,252,676 | 3.136 | 72,918,676 | 29,081,324 | 124,147,791 | |||||||||||||||
Month #12 December 1- 31 | 2,622,842 | 3.842 | 75,541,518 | 26,458,482 | 112,213,159 | |||||||||||||||
2009 | ||||||||||||||||||||
Month #1 January 1- 31 | 4,158,482 | 3.853 | 79,700,000 | 22,300,000 | 97,531,279 | |||||||||||||||
Month #2 February 1- 28 | 6,520,000 | 3.706 | 86,220,000 | 15,780,000 | 67,587,946 | |||||||||||||||
Month #3 March 1- 31 | 3,352,873 | 3.631 | 89,572,873 | 12,427,127 | 61,462,567 | |||||||||||||||
Month #4 April 1- 29 | 1,068,819 | 3.841 | 90,641,692 | 11,358,308 | 57,564,636 | |||||||||||||||
TOTAL | 90,641,692 | 4.826 | 90,641,692 | 11,358,308 | 57,564,636 | |||||||||||||||
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1. | On January 8, 2008, the Board of Directors decided to establish the following terms and conditions for the acquisition of its own shares issued by Banco Macro under the provisions of Section 68 of Law No. 17,811 (added by Decree No. 677/2001) and the rules of the CNV: (a) maximum amount of the investment: up to Ps. 210,000,000; (b) maximum number of shares to be acquired: up to 30,000,000 common, book entry, Class B shares with a par value of Ps. 1 (one Peso) each and entitled to 1 (one) vote per share, in the form of shares or ADSs representing 10 shares each, which amount does not exceed the limitation of the 10% of the capital of the Bank, as established by the applicable Argentine laws and regulations; (c) payable price: between Ps. 6.50 per share and up to Ps. 7.00 per share, and (d) term for the acquisition: 120 calendar days from the date of publication of the relevant information in the BCBA Bulletin, subject to any renewal or extension to be duly informed to the public in such Bulletin. |
2. | In May 2008 the Board of Directors of the Bank decided to extend the term for the acquisition of certain shares issued by the Bank for 30 additional calendar days and to amend the price range fixing such range between Ps. 6.00 and up to Ps. 7.00 per share. |
3. | In June 2008 the Board of Directors decided to extend the term for the acquisition of shares until July 6, 2008 and fixed the price range between Ps. 5.00 and up to Ps. 7.00 per share. |
4. | In July 2008 the Board of Directors of the Bank decided to increase the maximum amount of funds to be applied to the repurchase of shares up to Ps. 290,000,000 and the maximum number of shares subject to repurchase up to 50,000,000, to amend the price range of the shares, fixing such range between Ps. 4.00 and up to Ps. 7.00 per share and to extend the term for the acquisition of shares until September 5, 2008. |
5. | On September 4, 2008 the Board of Directors of the Bank decided to extend the maximum number of shares subject to repurchase up to 52,529,042, to amend the price range of the shares, fixing such range between Ps. 4.00 and up to Ps. 6.00 per share and to extend the term for the acquisition of shares until October 5, 2008. |
6. | In October 2008 the Board of Directors of the Bank decided to increase the maximum amount of funds to be applied to the repurchase of shares up to Ps. 390,000,000, the maximum number of shares up to 68,000,000 and to amend the price range of the shares, fixing such range between Ps. 1.00 and up to Ps. 6.00 per share. |
7. | On October 29, 2008 the Board of Directors of the Bank decided to increase the maximum amount of funds to be applied to the repurchase of shares up to Ps. 495,000,000, the maximum number of shares up to 102,000,000, to amend the price range of the shares, fixing such range between Ps. 0.01 and up to Ps. 4.00 per share and to extend the term for the acquisition of shares until December 19, 2008. This term was subsequently extended until April 30, 2009 by the Board of Directors meeting held on April 1, 2009. |
2017 Notes v/n | 2012 Notes v/n | |||||||
US$ | US$ | |||||||
Period | (1) | (2) | ||||||
2008 | ||||||||
January | 9,500,000 | — | ||||||
September | 10,850,000 | — | ||||||
October | 12,375,000 | 1,500,000 | ||||||
November | 1,300,000 | 6,160,000 | ||||||
December | 8,530,000 | 800,000 | ||||||
Total 2008 | 42,555,000 | 8,460,000 | ||||||
2009 | ||||||||
February | — | 200,000 | ||||||
April | — | 4,500,000 | ||||||
May | 1,050,000 | 21,020,000 | ||||||
August | — | 1,825,000 | ||||||
Total 2009 | 1,050,000 | 27,545,000 | ||||||
Total Repurchased | 43,605,000 | 36,005,000 | ||||||
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Item 16F. | Change in Registrant’s Certifying Accountant |
Item 16G. | Corporate Governance |
NYSE Corporate Governance Standards - Section 303.A | Banco Macro Corporate Practices | |
303A.01-Independent Directors-Listed companies must have a majority of independent directors on its Board of Directors. | Neither Argentine law nor our by-laws require us to have a majority of independent directors. | |
303A.02-Independence Tests-No director qualifies as “independent” unless the Board of Directors affirmatively determines that the director has no material relationship with the listed company (whether directly or as a partner, shareholder, or officer of an organization that has a relationship with the company), and emphasizes that the concern is independence from management. The board is also required, on a case by case basis, to express an opinion with regard to the independence or lack of independence, of each individual director. | Pursuant to General Resolution No. 368/01 of the CNV, as amended (T.O. 2001), a director is not independent if such director is: | |
(a) a member of management or an employee of shareholders who hold material holdings in the listed company or of other entities in which these shareholders have material holdings or over which these shareholders exercise a material influence; (b) is currently an employee or has, in the last three years, been an employee of the listed company; (c) a person who has a professional relationship or is part of a company or professional association that maintains professional relations with, or that receives remunerations or fees (other than directors’ fees) from, the listed company or from shareholders that have material holdings in the listed company, or with a company in which such shareholders have material holdings or exercise a material influence; (d) a person who has material holdings in the listed company or in an entity that has material holdings in, or exercises a material influence over, the listed company; |
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NYSE Corporate Governance Standards - Section 303.A | Banco Macro Corporate Practices | |
(e) a person who provides goods or services to the listed company or to shareholders that have material holdings in or exercise a material influence over the listed company and receives compensation for such services that is substantially higher than that received as director of the listed company; or (f) the member is married or is a family member to an individual who would not qualify as independent. “Material holdings” are shareholdings, either directly or indirectly, that represent at least 35% of the capital stock of the relevant entity, or a smaller percentage when the person has the right to elect one or more directors per class of shares or by having entered into agreements with other shareholders relating to the governance and the management of the relevant entity or of its controlling shareholders. | ||
303A.03-Executive Sessions-Non-management directors of each listed company must meet at regularly scheduled executive sessions without management. | Neither Argentine law nor our by-laws require the holding of such meetings and we do not hold non-management directors meetings. Our by-laws provide, however, that the board shall meet as often as required by the interests of the Bank and at least once a month. | |
303A.04-Nominating/Corporate Governance Committee- Listed companies must have a nominating/corporate governance committee composed entirely of independent directors, with a written charter that covers certain minimum specified duties. | Neither Argentine law nor our by-laws require the establishment of a nominating/corporate governance committee. We do not have a nominating/corporate governance committee. Directors are nominated and appointed by the shareholders. | |
303A.05-Compensation Committee-Listed companies must have a compensation committee composed entirely of independent directors, with a written charter that covers certain minimum specified duties. | Neither Argentine law nor our by-laws require the establishment of a compensation committee. We do not have a compensation committee. The compensation of our directors is determined at the annual ordinary shareholders’ meeting. Additionally, the audit committee must issue an opinion regarding the reasonableness and adequacy of such compensation. | |
303A.06/07-Audit Committee/Requirements-Listed companies must have an audit committee that satisfies the requirements of Rule 10A-3 under the Exchange Act. (a) The audit committee must have a minimum of three members. All of its members shall be financially literate or must acquire such financial knowledge within a reasonable period and at least one of its members shall have experience in accounting or financial administration. In addition to any requirement of Rule 10A-3(b)(1), all audit committee members must satisfy the requirements for independence set out in Section 303A.02. (b) If a member of the audit committee is simultaneously a member of the audit committee of more than three public companies, and the listed company does not limit the number of audit committees on which its members may serve, then, in each case the Board of Directors shall determine whether the simultaneous service would prevent such members from effectively serving on the listed company’s audit committee, and shall disclose in the annual proxy statement of the company or in the company’s annual report on Form 10-K, which is filed with the SEC. | (a) Argentine law requires that the audit committee be composed of three or more members from the Board of Directors (with a majority of independent directors), all of whom must be well-versed in business, financial or accounting matters. In addition, we are not required to satisfy the audit committee requirements of Rule 10A-3. All of the members of our Audit Committee, as appointed on May 7, 2010, satisfy the independence requirements of Rule 10A-3. (b) A comparable provision, relating to an audit committee member’s simultaneous membership on the audit committee of other public companies, does not exist under Argentine law or CNV standards. (c) The responsibilities of an audit committee, as provided in Decree No. 677/2001 and the CNV standards, are essentially the same as those provided for under Rule 10A-3 of the Exchange Act, including, but not limited to, the following: | |
A. discussing the adequacy of its charter and reporting any proposed changes to the Board of Directors; B. overseeing the performance of internal control systems, the administrative-accounting system and of all financial information or other facts which could be submitted to the controlling authorities in compliance with the applicable reporting regime; |
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NYSE Corporate Governance Standards - Section 303.A | Banco Macro Corporate Practices | |
(c) The audit committee must have a written charter that establishes the duties and responsibilities of its members, including, at a minimum, some of the duties and responsibilities required by Rule 10A-3 of the Exchange Act and the following responsibilities set forth in NYSE Sections 303A.07(c)(iii)(A)-H) of the NYSE Manual. A. at least annually, obtain and review a report by the independent auditor describing: the firm’s internal quality-control procedures; any material issues raised by the most recent internal quality-control review, or peer review, of the firm, or by any inquiry or investigation by governmental or professional authorities, within the preceding five years, respecting one or more independent audits carried out by the firm, and any steps taken to deal with any such issues; and (to assess the auditor’s independence) all relationships between the independent auditor and the listed company; B. meet to review and discuss the listed company’s annual audited consolidated financial statements and quarterly financial statements with management and the independent auditor, including reviewing the company’s specific disclosures under “Management’s Discussion and Analysis of Financial Condition and Results of Operations”; C. discuss the listed company’s earnings press releases, as well as financial information and earnings guidance provided to analysts and rating agencies; D. discuss policies with respect to risk assessment and risk management; E. meet separately, periodically, with management, with internal auditors (or other personnel responsible for the internal audit function) and with independent auditors; F. review with the independent auditor any audit problems or difficulties and management’s response; G. set clear hiring policies for employees or former employees of the independent auditors; and H. report regularly to the Board of Directors. (d) 303A.07(d) provides that each company must have an internal audit function to provide management and the audit committee with ongoing assessments of the company’s risk management processes. | C. issuing an opinion about the Board of Directors’ proposal for the appointment of the external auditors to be retained by the Bank, and ensuring that auditors are objective and independent; D. reviewing external and internal auditors’ plans, evaluating their performance, and issuing an opinion to that end; E. analyzing the different services provided by the external auditors; F. reporting on the fees invoiced by external auditors for other related services that secure third-party reliability; G. supervising the enforcement of the Bank’s risk management information policies; H. providing the market with full disclosure with respect to transactions that give rise to conflict of interests with the Bank’s members or controlling shareholders; I. issuing an opinion on the reasonableness of any proposal regarding Directors, management fees and stock option plans proposed by the Board of Directors; J. issuing an opinion on the compliance with applicable legal requirements and on the reasonableness of the terms of any issuance of stock or convertible securities that exclude or limit shareholders’ preferential subscription rights; K. assessing compliance with relevant rules of conduct; L. issuing a related-party transaction opinion as provided by applicable regulations; M. preparing an performance plan annually for each fiscal year which is presented to the Bank’s Board of Directors and the Supervisory Committee; and N. complying with all other obligations imposed by applicable laws and regulations. | |
303A.08-Shareholder Approval of Equity Compensation Plans-Shareholders must be given the opportunity to vote on equity compensation plans and material revisions thereto, except for employment inducement awards, certain grants, plans and amendments in the context of mergers and acquisitions, and certain specific types of plans. | We do not currently offer equity-based compensation to our directors, executive officers or employees, and have no policy on this matter. | |
303A.09-Corporate Governance Guidelines-Listed companies must adopt and disclose corporate governance guidelines. | Neither Argentine law nor our by-laws require the adoption or disclosure of corporate governance guidelines. The CNV, through General Resolution 516/07, issued a recommended Code of Corporate Governance for listed companies. Using the CNV recommended code as basis, on June 3, 2009, our Board of Directors approved a Code of Corporate Governance for the Bank. | |
303A.10-Code of Business Conduct and Ethics- Listed companies must adopt and disclose a code of business conduct and ethics for directors, officers and employees, and within four business days disclose any waivers of the code for directors or executive officers. | Neither Argentine law nor our by-laws require the adoption or disclosure of a code of business conduct. We, however, have adopted a code of business conduct that applies to all our employees. In addition, we have adopted a specific Code of Ethics for our Directors and Senior Financial Officers. |
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NYSE Corporate Governance Standards - Section 303.A | Banco Macro Corporate Practices | |
303A.12 Certification Requirements- (a) Each listed company CEO must certify to the NYSE each year that he or she is not aware of any violation by the company of NYSE corporate governance listing standards, qualifying the certification to the extent necessary. (b) Each listed company CEO must promptly notify the NYSE in writing after any executive officer of the listed company becomes aware of any non-compliance with any applicable provisions of this Section 303A. (c) Each listed company must submit an executed Written Affirmation annually to the NYSE. In addition, each listed company must submit an interim written affirmation as and when required by the interim written affirmation form specified by the NYSE. | Comparable provisions do not exist under Argentine law and CNV standards. Nevertheless, the Bank has complied with the certification requirements under Section 303A.12 of the NYSE rules. |
Item 17. | Financial Statements |
Item 18. | Financial Statements |
Item 19. | Exhibits |
Exhibit Number | Description | |||
1.1 | * | Amended and Restated Bylaws of the Bank, as amended on April 21, 2009. | ||
2.1 | Deposit Agreement among the registrant, The Bank of New York, as depositary, and the holders from time to time of American depositary shares issued thereunder, including the form of American depositary receipts, incorporated by reference to the Registration Statement on Form F-1, as amended, filed by the Bank on March 20, 2006 (File No. 333-130901). | |||
8 | See Note 4.1 to our financial statements for information regarding our subsidiaries. | |||
12.1 | * | Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | ||
12.2 | * | Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | ||
13.1 | * | Certification of Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | ||
13.2 | * | Certification of Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |
* | Filed herein |
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BANCO MACRO S.A. | ||||
By: | /s/ Jorge Horacio Brito | |||
Name: | Jorge Horacio Brito | |||
Title: | Chief Executive Officer |
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F - 1
Table of Contents
BANCO MACRO S.A. and subsidiaries
Sarmiento 447
City of Buenos Aires
We have audited the accompanying consolidated balance sheets of BANCO MACRO S.A. (a bank organized under Argentine legislation) and its subsidiaries (the Bank) as of December 31, 2009 and 2008, and the related consolidated statements of income, shareholders’ equity and cash flows for each of the three years in the period ended December 31, 2009. These financial statements are the responsibility of the Bank’s Management. Our responsibility is to express an opinion on these financial statements based on our audits.
We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States of America). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in all material respects, the consolidated financial position of BANCO MACRO S.A. and its subsidiaries as of December 31, 2009 and 2008, and the consolidated results of their operations and their cash flows for each of the three years in the period ended December 31, 2009, in accordance with Central Bank of Argentine Republic rules applicable to the consolidated financial statements, which differ in certain respects from the accounting principles generally accepted in the United States of America (see note 35 to the consolidated financial statements).
We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States of America), the internal control over financial reporting of BANCO MACRO S.A. and its subsidiaries as of December 31, 2009, based on criteria established in Internal Control – Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission and our report dated May 28, 2010 expressed an unqualified opinion thereon.
City of Buenos Aires,
May 28, 2010
PISTRELLI, HENRY MARTIN Y ASOCIADOS S.R.L.
Member of Ernst & Young Global
CARLOS M. SZPUNAR
Partner
F - 2
Table of Contents
(Figures stated in thousands of pesos)
2009 | 2008 (1) | |||||||
ASSETS | ||||||||
CASH | ||||||||
Cash on hand | 1,304,922 | 1,008,136 | ||||||
Due from banks and correspondents | ||||||||
Central Bank of Argentina | 2,910,020 | 2,059,057 | ||||||
Local Others | 11,454 | 9,225 | ||||||
Foreign | 789,559 | 447,263 | ||||||
Other | 237 | 216 | ||||||
5,016,192 | 3,523,897 | |||||||
GOVERNMENT AND PRIVATE SECURITIES | ||||||||
Holdings in investment accounts | 659,371 | 448,305 | ||||||
Holdings for trading or financial intermediation | 1,511,071 | 344,467 | ||||||
Unlisted government securities | 79,449 | 69,958 | ||||||
Instruments issued by the Central Bank of Argentina | 4,650,421 | 3,838,911 | ||||||
Investments in listed private securities | 80,876 | 77,685 | ||||||
Less: Allowances | (44 | ) | (27 | ) | ||||
6,981,144 | 4,779,299 | |||||||
LOANS | ||||||||
To the non-financial government sector | 206,484 | 744,507 | ||||||
To the financial sector | ||||||||
Interbank financing | 50,000 | 42,030 | ||||||
Other financing to Argentine financial institutions | 40,442 | 37,836 | ||||||
Accrued interest, adjustments, foreign exchange and quoted price differences receivables | 474 | 557 | ||||||
To the non-financial private sector and foreign residents | ||||||||
Overdrafts | 1,436,292 | 1,556,433 | ||||||
Documents | 1,412,551 | 1,348,585 | ||||||
Mortgage loans | 746,762 | 738,592 | ||||||
Pledged loans | 262,508 | 339,895 | ||||||
Personal loans | 4,006,592 | 3,806,442 | ||||||
Credit cards | 950,098 | 869,101 | ||||||
Other | 2,271,756 | 2,071,927 | ||||||
Accrued interest, adjustments, foreign exchange and quoted price differences receivables | 182,168 | 195,026 | ||||||
Less: Unposted payments | (29 | ) | (29 | ) | ||||
Less: Unearned discount | (21,246 | ) | (32,596 | ) | ||||
Less: Allowances | (448,045 | ) | (438,348 | ) | ||||
11,096,807 | 11,279,958 | |||||||
(1) | See note 4.2. to the accompanying consolidated financial statements. |
F - 3
Table of Contents
(Figures stated in thousands of pesos)
2009 | 2008 (1) | |||||||
OTHER RECEIVABLES FROM FINANCIAL INTERMEDIATION | ||||||||
Central Bank of Argentina | 1,284,709 | 412,305 | ||||||
Amounts receivable from spot and forward sales pending settlement | 37,042 | 494,737 | ||||||
Securities and foreign currency receivable from spot and forward purchases pending settlement | 536,560 | 54,282 | ||||||
Unlisted corporate bonds | 80,746 | 53,389 | ||||||
Receivables from forward transactions without delivery of underlying asset | 5,295 | 109 | ||||||
Other receivables not covered by debtors classification standards | 598,224 | 597,319 | ||||||
Other receivables covered by debtors classification standards | 69,296 | 70,512 | ||||||
Less: Allowances | (231,219 | ) | (228,588 | ) | ||||
2,380,653 | 1,454,065 | |||||||
ASSETS SUBJECT TO FINANCIAL LEASES | ||||||||
Assets subject to financial leases | 250,239 | 360,781 | ||||||
Less: Allowances | (3,649 | ) | (5,391 | ) | ||||
246,590 | 355,390 | |||||||
INVESTMENTS IN OTHER COMPANIES | ||||||||
In financial institutions | 531 | 483 | ||||||
Other | 10,925 | 15,561 | ||||||
Less: Allowances | (1,497 | ) | (247 | ) | ||||
9,959 | 15,797 | |||||||
OTHER RECEIVABLES | ||||||||
Receivables from sale of assets | 12,231 | 43,358 | ||||||
Minimum presumed income tax — Tax credit | 10,280 | 25,767 | ||||||
Other | 357,483 | 196,000 | ||||||
Accrued interest and adjustments on receivables from sale of assets | 481 | 2,502 | ||||||
Less: Allowances | (13,980 | ) | (15,838 | ) | ||||
366,495 | 251,789 | |||||||
BANK PREMISES AND EQUIPMENT, NET | 433,625 | 430,842 | ||||||
OTHER ASSETS | 114,342 | 137,357 | ||||||
INTANGIBLE ASSETS | ||||||||
Goodwill | 55,045 | 63,477 | ||||||
Organization and development costs, including Differences due to court orders | 155,529 | 135,069 | ||||||
210,574 | 198,546 | |||||||
ITEMS PENDING ALLOCATION | 2,857 | 3,332 | ||||||
TOTAL ASSETS | 26,859,238 | 22,430,272 | ||||||
(1) | See note 4.2. to the accompanying consolidated financial statements. |
F - 4
Table of Contents
(Figures stated in thousands of pesos)
2009 | 2008 (1) | |||||||
LIABILITIES | ||||||||
DEPOSITS | ||||||||
From the non-financial government sector | 3,613,924 | 3,937,961 | ||||||
From the financial sector | 14,052 | 22,438 | ||||||
From the non-financial private sector and foreign residents | ||||||||
Checking accounts | 3,275,826 | 2,581,060 | ||||||
Savings accounts | 3,445,577 | 2,716,913 | ||||||
Time deposits | 7,711,471 | 6,031,882 | ||||||
Investment accounts | 52,286 | 155,936 | ||||||
Other | 416,503 | 321,020 | ||||||
Accrued interest, adjustments, foreign exchange and quoted price differences payables | 63,227 | 61,147 | ||||||
18,592,866 | 15,828,357 | |||||||
OTHER LIABILITIES FROM FINANCIAL INTERMEDIATION | ||||||||
Central Bank of Argentina — Other | 1,897 | 302,760 | ||||||
Banks and international institutions | 219,743 | 224,968 | ||||||
Non-subordinated Corporate Bonds | 601,016 | 708,354 | ||||||
Amounts payable for spot and forward purchases pending settlement | 492,183 | 68,499 | ||||||
Securities and foreign currency to be delivered under spot and forward sales pending settlement | 1,076,047 | 679,495 | ||||||
Put options sold premiums | 80 | — | ||||||
Financing received from Argentine financial institutions | ||||||||
Interbank financing | 145,000 | 25,000 | ||||||
Other financing received from Argentine financial institutions | 18,957 | 24,139 | ||||||
Accrued interest payables | 78 | 16 | ||||||
Forward transactions amounts pending settlement without delivery of underlying asset | — | 5,949 | ||||||
Other | 732,686 | 625,981 | ||||||
Accrued interest, adjustments, foreign exchange and quoted price differences payables | 50,383 | 49,783 | ||||||
3,338,070 | 2,714,944 | |||||||
OTHER LIABILITIES | ||||||||
Fees | 624 | 676 | ||||||
Other | 883,458 | 442,026 | ||||||
884,082 | 442,702 | |||||||
PROVISIONS | 88,275 | 83,004 | ||||||
SUBORDINATED CORPORATE BONDS | 572,473 | 521,681 | ||||||
ITEMS PENDING ALLOCATION | 3,987 | 2,105 | ||||||
MINORITY INTEREST IN SUBSIDIARIES | 20,684 | 15,568 | ||||||
TOTAL LIABILITIES | 23,500,437 | 19,608,361 | ||||||
SHAREHOLDERS’ EQUITY | 3,358,801 | 2,821,911 | ||||||
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | 26,859,238 | 22,430,272 | ||||||
(1) | See note 4.2. to the accompanying consolidated financial statements. |
are an integral part of these statements.
F - 5
Table of Contents
(Figures stated in thousands of pesos)
2009 | 2008 (1) | |||||||
DEBIT-BALANCE ACCOUNTS | 12,204,355 | 13,368,350 | ||||||
Contingent | 4,430,261 | 3,669,663 | ||||||
Guarantees received | 3,963,188 | 3,295,985 | ||||||
Other not covered by debtors classification standards | 359 | 346 | ||||||
Contingent debit-balance contra accounts | 466,714 | 373,332 | ||||||
Control | 6,152,834 | 5,435,013 | ||||||
Receivables classified as irrecoverable | 797,220 | 774,299 | ||||||
Other | 5,094,428 | 4,401,411 | ||||||
Control debit-balance contra accounts | 261,186 | 259,303 | ||||||
Derivatives | 1,033,601 | 3,598,362 | ||||||
Notional value of call options taken | 25,229 | 24,349 | ||||||
Notional value of forward transactions without delivery of underlying asset | 461,234 | 2,219,777 | ||||||
Interest rate swap | 157,917 | 39,422 | ||||||
Derivatives debit-balance contra accounts | 389,221 | 1,314,814 | ||||||
Trust activity | 587,659 | 665,312 | ||||||
Trust funds | 587,659 | 665,312 |
(1) | See note 4.2. to the accompanying consolidated financial statements. |
F - 6
Table of Contents
(Figures stated in thousands of pesos)
2009 | 2008 (1) | |||||||
CREDIT-BALANCE ACCOUNTS | (12,204,355 | ) | (13,368,350 | ) | ||||
Contingent | (4,430,261 | ) | (3,669,663 | ) | ||||
Guarantees provided to the Central Bank of Argentina | — | (141,353 | ) | |||||
Other guarantees provided covered by debtors classification standards | (85,213 | ) | (84,136 | ) | ||||
Other guarantees provided not covered by debtors classification standards | (130,826 | ) | (57,758 | ) | ||||
Other covered by debtors classification standards | (250,675 | ) | (90,085 | ) | ||||
Contingent credit-balance contra accounts | (3,963,547 | ) | (3,296,331 | ) | ||||
Control | (6,152,834 | ) | (5,435,013 | ) | ||||
Checks to be credited | (261,186 | ) | (259,303 | ) | ||||
Control credit-balance contra accounts | (5,891,648 | ) | (5,175,710 | ) | ||||
Derivatives | (1,033,601 | ) | (3,598,362 | ) | ||||
Notional value of call options sold | (32,905 | ) | — | |||||
Notional value of put options sold | (69,900 | ) | (99,826 | ) | ||||
Notional value of forward transactions without delivery of underlying asset | (286,416 | ) | (1,214,988 | ) | ||||
Derivatives credit-balance contra accounts | (644,380 | ) | (2,283,548 | ) | ||||
Trust activity | (587,659 | ) | (665,312 | ) | ||||
Trust activity credit-balance contra accounts | (587,659 | ) | (665,312 | ) |
(1) | See note 4.2. to the accompanying consolidated financial statements. |
are an integral part of these statements.
F - 7
Table of Contents
(Figures stated in thousands of pesos)
2009 | 2008 (1) | 2007 (1) | ||||||||||
FINANCIAL INCOME | ||||||||||||
Interest on cash and due from banks | 363 | 7,010 | 19,917 | |||||||||
Interest on loans to the financial sector | 7,491 | 15,584 | 32,157 | |||||||||
Interest on overdrafts | 340,275 | 357,215 | 177,490 | |||||||||
Interest on documents | 195,069 | 184,852 | 103,428 | |||||||||
Interest on mortgage loans | 104,016 | 97,057 | 68,065 | |||||||||
Interest on pledged loans | 55,081 | 64,499 | 51,480 | |||||||||
Interest on credit card loans | 183,369 | 117,952 | 55,665 | |||||||||
Interest on other loans | 1,243,788 | 1,032,837 | 578,737 | |||||||||
Interest on other receivables from financial intermediation | 74 | 14,416 | 18,471 | |||||||||
Income from government and private securities, net | 1,370,981 | 641,299 | 488,757 | |||||||||
Income from guaranteed loans — Presidential Decree No. 1,387/01 | 7,232 | 37,043 | 35,043 | |||||||||
Net income from options | — | 261 | 1,604 | |||||||||
CER (Benchmark Stabilization Coefficient) adjustment | 18,652 | 70,477 | 78,065 | |||||||||
CVS (Salary Variation Coefficient) adjustment | 728 | 818 | 1,605 | |||||||||
Difference in quoted prices of gold and foreign currency | 133,731 | 143,094 | 48,823 | |||||||||
Other | 199,602 | 245,446 | 131,115 | |||||||||
3,860,452 | 3,029,860 | 1,890,422 | ||||||||||
FINANCIAL EXPENSE | ||||||||||||
Interest on checking accounts | 16,423 | 17,708 | 19,968 | |||||||||
Interest on savings accounts | 17,094 | 14,534 | 11,372 | |||||||||
Interest on time deposits | 1,146,013 | 933,881 | 457,395 | |||||||||
Interest on interfinancing received loans (received call) | 2,679 | 3,909 | 4,608 | |||||||||
Interest on other financing from financial institutions | 62 | 28 | 226 | |||||||||
Interest on other liabilities from financial intermediation | 81,510 | 91,083 | 70,706 | |||||||||
Interest on subordinated bonds | 54,874 | 47,523 | 49,858 | |||||||||
Other interest | 2,692 | 8,762 | 9,768 | |||||||||
Net expense from options | 1 | — | — | |||||||||
CER adjustment | 4,341 | 32,946 | 43,717 | |||||||||
Contribution to Deposit Guarantee Fund | 30,038 | 25,945 | 20,182 | |||||||||
Other | 155,880 | 165,743 | 117,465 | |||||||||
1,511,607 | 1,342,062 | 805,265 | ||||||||||
GROSS INTERMEDIATION MARGIN — GAIN | 2,348,845 | 1,687,798 | 1,085,157 | |||||||||
PROVISION FOR LOAN LOSSES | 197,512 | 297,606 | 94,717 | |||||||||
SERVICE-CHARGE INCOME | ||||||||||||
Related to lending transactions | 60,741 | 63,669 | 53,995 | |||||||||
Related to deposits | 669,668 | 587,426 | 398,569 | |||||||||
Other commissions | 29,032 | 23,528 | 21,687 | |||||||||
Other | 290,834 | 217,077 | 188,075 | |||||||||
1,050,275 | 891,700 | 662,326 | ||||||||||
(1) | See note 4.2. to the accompanying consolidated financial statements. |
F - 8
Table of Contents
(Figures stated in thousands of pesos)
2009 | 2008 (1) | 2007 (1) | ||||||||||
SERVICE-CHARGE EXPENSE | ||||||||||||
Commissions | 61,620 | 57,077 | 49,965 | |||||||||
Other | 164,979 | 115,324 | 100,317 | |||||||||
226,599 | 172,401 | 150,282 | ||||||||||
ADMINISTRATIVE EXPENSES | ||||||||||||
Personnel expenses | 966,963 | 798,236 | 589,021 | |||||||||
Directors’ and statutory auditors’ fees | 36,413 | 26,941 | 37,695 | |||||||||
Other professional fees | 65,533 | 55,012 | 42,428 | |||||||||
Advertising and publicity | 46,861 | 53,178 | 50,343 | |||||||||
Taxes | 79,784 | 70,994 | 53,914 | |||||||||
Depreciation of equipment | 53,993 | 50,543 | 42,723 | |||||||||
Amortization of organization costs | 33,317 | 25,557 | 17,923 | |||||||||
Other operating expenses | 216,128 | 170,926 | 144,158 | |||||||||
Other | 23,428 | �� | 18,615 | 19,261 | ||||||||
1,522,420 | 1,270,002 | 997,466 | ||||||||||
NET INCOME FROM FINANCIAL INTERMEDIATION | 1,452,589 | 839,489 | 505,018 | |||||||||
OTHER INCOME | ||||||||||||
Income from long-term investments | 7,618 | 25,847 | 890 | |||||||||
Penalty interest | 23,884 | 14,982 | 7,580 | |||||||||
Recovered loans and allowances reversed | 46,921 | 94,490 | 133,118 | |||||||||
CER adjustment | 74 | 95 | 194 | |||||||||
Other | 43,480 | 53,036 | 41,743 | |||||||||
121,977 | 188,450 | 183,525 | ||||||||||
OTHER EXPENSE | ||||||||||||
Penalty interest and charges payable to the Central Bank of Argentina | 20 | 181 | 64 | |||||||||
Charge for other receivables uncollectibility and other allowances | 21,275 | 37,242 | 15,599 | |||||||||
Amortization of differences from deposits dollarization | 20,633 | 29,509 | 29,279 | |||||||||
Depreciation and loss of other assets | 6,847 | 2,151 | 5,303 | |||||||||
Goodwill amortization | 8,432 | 8,439 | 9,250 | |||||||||
Other | 101,087 | 25,806 | 39,420 | |||||||||
158,294 | 103,328 | 98,915 | ||||||||||
MINORITY INTEREST IN SUBSIDIARIES | (5,092 | ) | (3,354 | ) | (2,083 | ) | ||||||
INCOME BEFORE INCOME TAX | 1,411,180 | 921,257 | 587,545 | |||||||||
INCOME TAX | 659,250 | 261,207 | 92,345 | |||||||||
NET INCOME FOR THE FISCAL YEAR | 751,930 | 660,050 | 495,200 | |||||||||
NET INCOME PER SHARE (2) — stated in pesos | 1.26 | 1.00 | 0.72 | |||||||||
(1) | See note 4.2. to the accompanying consolidated financial statements. | |
(2) | See note 9. to the accompanying consolidated financial statements. |
are an integral part of these statements.
F - 9
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(Figures stated in thousands of pesos)
Adjustments | Earnings reserved | |||||||||||||||||||||||||||||||
Capital | Stock | to | Special | |||||||||||||||||||||||||||||
stock | issuance | shareholders’ | Corporate | Unappropriated | ||||||||||||||||||||||||||||
Changes | (1) | premium | equity | Legal | Bonds | Voluntary | earnings (1) | Total | ||||||||||||||||||||||||
Balances as of December 31, 2006 | 683,979 | 394,584 | 4,511 | 297,845 | — | 211 | 933,967 | 2,315,097 | ||||||||||||||||||||||||
Merger of Nuevo Banco Bisel S.A.: | ||||||||||||||||||||||||||||||||
- Balance of Nuevo Banco Bisel S.A. | 911,240 | 33,086 | 447 | 17,318 | 169 | (47,071 | ) | 915,189 | ||||||||||||||||||||||||
- Merger effects (1) | (910,092 | ) | (28,920 | ) | (447 | ) | (17,318 | ) | (169 | ) | 47,071 | (909,875 | ) | |||||||||||||||||||
Distribution of unappropriated earnings, as approved by the Shareholders’ Meeting held on April, 26, 2007: | ||||||||||||||||||||||||||||||||
- Legal reserve | 84,860 | (84,860 | ) | |||||||||||||||||||||||||||||
- Cash dividends (2) | (102,591 | ) | (102,591 | ) | ||||||||||||||||||||||||||||
- Special reserve — Corporate Bonds (3) | 45,515 | (45,515 | ) | |||||||||||||||||||||||||||||
Reversal of Special Reserve — Corporate Bonds (3) | (45,515 | ) | 45,515 | |||||||||||||||||||||||||||||
Net income for the fiscal year | 495,200 | 495,200 | ||||||||||||||||||||||||||||||
Balances as of December 31, 2007 | 685,127 | 398,750 | 4,511 | 382,705 | — | 211 | 1,241,716 | 2,713,020 | ||||||||||||||||||||||||
Distribution of unappropriated earnings, as approved by the Shareholders’ Meeting held on April, 29,2008: | ||||||||||||||||||||||||||||||||
- Legal reserve | 99,038 | (99,038 | ) | |||||||||||||||||||||||||||||
- Cash dividends (2) | (170,995 | ) | (170,995 | ) | ||||||||||||||||||||||||||||
- Special reserve — Corporate Bonds (3) | 46,083 | (46,083 | ) | |||||||||||||||||||||||||||||
Reversal of Special Reserve — Corporate Bonds (3) | (46,083 | ) | 46,083 | |||||||||||||||||||||||||||||
Own shares reacquired | (380,164 | ) | (380,164 | ) | ||||||||||||||||||||||||||||
Net income for the fiscal year | 660,050 | 660,050 | ||||||||||||||||||||||||||||||
Balances as of December 31, 2008 | 685,127 | 398,750 | 4,511 | 481,743 | — | 211 | 1,251,569 | 2,821,911 | ||||||||||||||||||||||||
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(Figures stated in thousands of pesos)
Adjustments | Earnings reserved | |||||||||||||||||||||||||||||||
Capital | Stock | to | Special | |||||||||||||||||||||||||||||
stock | issuance | shareholders’ | Corporate | Unappropriated | ||||||||||||||||||||||||||||
Changes | (1) | premium | equity | Legal | Bonds | Voluntary | earnings (1) | Total | ||||||||||||||||||||||||
Own shares reacquired | (56,665 | ) | (56,665 | ) | ||||||||||||||||||||||||||||
Capital Stock decrease approved by the Shareholders’ Meeting of April 21, 2009 (4) | (60,000 | ) | 60,000 | |||||||||||||||||||||||||||||
Capital stock decrease approved by the Shareholders’ meeting of September 10, 2009 (4) | (30,642 | ) | 30,642 | |||||||||||||||||||||||||||||
Distribution of unappropriated earnings, as approved by the Shareholders’ Meeting held on May, 12,2009: | ||||||||||||||||||||||||||||||||
- Legal reserve | 132,010 | (132,010 | ) | |||||||||||||||||||||||||||||
- Cash dividends (2) | (148,335 | ) | (148,335 | ) | ||||||||||||||||||||||||||||
- Special reserve — Corporate Bonds (3) | 50,510 | (50,510 | ) | |||||||||||||||||||||||||||||
- Tax on Personal Assets | (10,040 | ) | (10,040 | ) | ||||||||||||||||||||||||||||
Reversal of Special Reserve — Corporate Bonds (3) | (50,510 | ) | 50,510 | |||||||||||||||||||||||||||||
Net income for the fiscal year | 751,930 | 751,930 | ||||||||||||||||||||||||||||||
Balances as of December 31, 2009 | 594,485 | 398,750 | 4,511 | 613,753 | — | 211 | 1,747,091 | 3,358,801 | ||||||||||||||||||||||||
(1) | Includes the retroactive accounting effects of legal merger of Nuevo Banco Bisel S.A. mentioned in note 3.7. The legal capital structure is described in note 9. to the accompanying consolidated financial statements. See notes 3.7. and 4.2. to the accompanying consolidated financial statements. | |
(2) | Through resolutions of April 16, 2007, April 11, 2008 and September 4, 2009, respectively, the Central Bank authorized the above mentioned cash dividends distribution. | |
(3) | See note 10. to the accompanying consolidated financial statements. | |
(4) | See notes 4.4.q.2) and 9. to the accompanying consolidated financial statements. |
are an integral part of these statements.
F - 11
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(Figures stated in thousands of pesos)
2009 | 2008 (1) | 2007 (1) | ||||||||||
Changes in cash and cash equivalents | ||||||||||||
Cash and cash equivalents at beginning of fiscal year | 3,523,897 | 3,117,426 | 2,626,908 | |||||||||
Cash and cash equivalents at end of fiscal year | 5,396,063 | 3,523,897 | 3,117,426 | |||||||||
Net increase in cash and cash equivalents | 1,872,166 | 406,471 | 490,518 | |||||||||
Causes of changes in cash and cash equivalents | ||||||||||||
Operating activities | ||||||||||||
Net collections / (payments): | ||||||||||||
- Government and private securities | (516,662 | ) | 80,038 | (68,837 | ) | |||||||
- Loans | ||||||||||||
- to the financial sector | (2,801 | ) | 95,190 | 310,024 | ||||||||
- to the non-financial government sector | 58,098 | 66,026 | 36,674 | |||||||||
- to the non-financial private sector and foreign residents | 1,630,838 | 236,273 | (2,687,238 | ) | ||||||||
- Other receivables from financial intermediation | (228,120 | ) | (53,947 | ) | (509,249 | ) | ||||||
- Assets subject to financial leases | 170,624 | 85,202 | (31,295 | ) | ||||||||
- Deposits | ||||||||||||
- from the financial sector | (8,386 | ) | 10,705 | 8,232 | ||||||||
- from the non-financial government sector | (532,281 | ) | 1,981,008 | 473,453 | ||||||||
- from the non-financial private sector and foreign residents | 2,083,281 | (668,310 | ) | 2,614,398 | ||||||||
- Other liabilities from financial intermediation | ||||||||||||
- financing facilities from the financial sector (received calls) | 117,083 | (866 | ) | (3,320 | ) | |||||||
- others (except liabilities included under financing activities) | 475,800 | (91,712 | ) | 278,226 | ||||||||
Collections related to service-change income | 1,043,723 | 882,354 | 658,863 | |||||||||
Payments related to service-charge expenses | (220,860 | ) | (168,091 | ) | (146,606 | ) | ||||||
Administrative expenses paid | (1,405,088 | ) | (1,120,663 | ) | (873,034 | ) | ||||||
Payments of organization and development expenses | (44,144 | ) | (45,258 | ) | (57,438 | ) | ||||||
Net collections from penalty interest | 23,874 | 14,801 | 7,569 | |||||||||
Differences from payments related to court orders | (30,327 | ) | (16,733 | ) | (34,445 | ) | ||||||
Collections of dividends from other companies | 6,397 | 26,939 | 636 | |||||||||
Other (payments)/collections related to other income and losses | (25,351 | ) | (12,831 | ) | 15,679 | |||||||
Net (payments) / collections from other operating activities | (38,934 | ) | 6,636 | (14,711 | ) | |||||||
Payment of income tax / minimum presumed income tax | (350,396 | ) | (81,967 | ) | (80,183 | ) | ||||||
Net cash flows generated in/(used in) operating activities | 2,206,368 | 1,224,794 | (102,602 | ) | ||||||||
Investing activities | ||||||||||||
Net payments for bank premises and equipment | (34,329 | ) | (72,819 | ) | (77,661 | ) | ||||||
Net (payments) / collections for other assets | (1,080 | ) | 23,731 | (1,559 | ) | |||||||
Payments from purchases of investments in other companies | — | (635 | ) | — | ||||||||
Collections from sales of investments in other companies | 150 | 922 | 33 | |||||||||
Other (payments) / collections for investing activities | (8,138 | ) | 5,032 | (1,678 | ) | |||||||
Net cash flows used in investing activities | (43,397 | ) | (43,769 | ) | (80,865 | ) | ||||||
Financing activities | ||||||||||||
Net (payments) / collections: | ||||||||||||
- Non-subordinated corporate bonds | (108,424 | ) | (133,211 | ) | 749,464 | |||||||
- Central Bank of Argentina | ||||||||||||
- Other | (76,814 | ) | (79,206 | ) | (53,681 | ) | ||||||
- Banks and International Institutions | (22,318 | ) | 47,204 | (15,844 | ) | |||||||
- Subordinated corporate bonds | (56,225 | ) | (18,397 | ) | (13,240 | ) | ||||||
- Financing received from Argentine financial institutions | (5,171 | ) | (63,489 | ) | 82,885 | |||||||
Irrevocable capital | — | — | 182 | |||||||||
Payment of dividends | (148,350 | ) | (171,004 | ) | (102,591 | ) | ||||||
Other payments from financing activities | ||||||||||||
- Own shares reacquired | (56,665 | ) | (380,164 | ) | — | |||||||
- Other collections | — | — | (3,230 | ) | ||||||||
Net cash flows (used in)/generated in financing activities | (473,967 | ) | (798,267 | ) | 643,945 | |||||||
Financial income and holding gains on cash and cash equivalents | 183,162 | 23,713 | 30,040 | |||||||||
Net increase in cash and cash equivalents | 1,872,166 | 406,471 | 490,518 | |||||||||
(1) | See note 4.2. to the accompanying consolidated financial statements. |
are an integral part of these statements
F - 12
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1. | OVERVIEW OF THE BANK |
Macro Compañía Financiera S.A. was created in 1977 as a non-banking financial institution. In May 1988, it received the authorization to operate as a commercial bank and it was incorporated as Banco Macro S.A. Subsequently, as a result of the merger process with other entities, it adopted other names (among them, Banco Macro Bansud S.A.) and since August 2006, Banco Macro S.A. (hereinafter, the Bank). |
Banco Macro S.A.’s shares have been publicly listed on the BCBA (Buenos Aires Stock Exchange) since November 1994, and in March 24, 2006, it listed its shares on the New York Stock Exchange (see also note 9). |
Since 1994, Banco Macro S.A.’s market strategy was mainly focused on the regional areas outside the City of Buenos Aires. Following this strategy, in 1996, Banco Macro S.A. started to acquire entities and assets and liabilities during the privatization of provincial and other banks. |
In December 2001, 2004 and 2006, the Bank acquired control of Banco Bansud S.A., Nuevo Banco Suquía S.A. (see note 3.5) and Nuevo Banco Bisel S.A. (see note 3.7), respectively. Such entities merged with and into Banco Macro S.A. on December 2003, October 2007 and August 2009, respectively. |
Additionally, during the fiscal year ended 2006, Banco Macro S.A. acquired 79.84% of the capital stock of Banco del Tucumán S.A., totaling 89.93% of this capital stock in 2007. |
The Bank currently offers traditional bank products and services to companies, including those operating in regional economies, as well as to individuals, thus reinforcing the Bank’s objective to be a multi-services bank. |
In addition, the Bank performs certain transactions through its subsidiaries, including mainly Banco del Tucumán S.A., Macro Bank Limited (an entity organized under the laws of Bahamas), Macro Securities S.A. Sociedad de Bolsa, Sud Inversiones & Análisis S.A. and Macro Fondos S.G.F.C.I.S.A. |
The chart showing the organizational structure as of December 31, 2009 is disclosed in note 4.1. with the percentages indicating the ownership in each subsidiary. |
See also note 3.8. |
2. | CHANGES IN THE ARGENTINE MACROECONOMIC ENVIRONMENT AND THE SITUATIONS OF THE FINANCIAL SYSTEM AND THE BANK |
The financial and capital markets |
During the year 2008 the financial markets of the world’s leading countries were rocked by volatility, lack of liquidity and credit. Instead, in early 2009, although signs of a tendency towards normalcy or initiation of a globaleconomic recovery are not consolidated, this situation began turning around. |
In Argentina, stock markets had shown decreases in the prices of government and private securities, as well as increases in interest rates, the country risk and in foreign exchange rates, and the effects of the mentioned economic deceleration began to show. Furthermore, on October, 2008, the AFJP (private pension fund managers) system was brought to an end. |
Starting from the second half of 2009, the abovementioned situation began a reversal process as the country risk premium has dropped, government securities registered significant rises in their listed prices and the foreign exchange and interest rates reduced their volatility. |
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On February 2, 2009, joint Resolutions 08/2009 and 05/2009 issued by the Secretariat of Finance of the National Ministry of Economy and Public Finance, established a debt exchange transaction of certain guaranteed loans for a new bond or promissory note referred to as “Argentine Bond or Promissory Note in Argentine pesos at the Badlar (the Badlar rate is a daily wholesale rate, an average of the interest rates for time deposits above one million pesos offered by commercial banks, based on Central Bank survey) interest rate + 275 basis points maturing in 2014”, issued on January 30, 2009, with maturity date of January 30, 2014, thereby extending the original maturity date of such guaranteed loans to 2014. The annual interest rate paid on a quarterly basis shall be 15.4% for the first year and Badlar rate plus 275 basis points for the rest of the period. |
On January 29, 2009, and February 10, 2009, the Bank entered into an exchange agreement whereby it exchanged the guaranteed loans for a book value of 277,832 and received Argentina bonds (Bonar) at the Badlar interest rate + 275 basis points, in Argentine pesos maturing in 2014 for a book value of 277,832. Under Central Bank rules, the accounting of the exchange did not have impact in the consolidated financial statements of the Bank. As of December 31, 2009, the remaining amount of such holdings was classified in special investment accounts (see note 4.4.b.1)i.). |
Additionally, in January and February 2009, as set forth by Central Bank Resolution No. 06/2009 the Bank decided to prepay the loans received to acquire Argentine Government bonds intended for the depositors of former Nuevo Banco Suquía S.A and former Nuevo Banco Bisel S.A. (see note 7.2.b). |
On September 1, 2009, Joint Resolutions 216/2009 and 57/2009 issued by the Secretariat of Finance of the National Ministry of Economy and Public Finance, established a debt exchange transaction of certain guaranteed loans and government securities for a new bond or promissory note referred to as “Argentine Bond or Promissory Note in Argentine pesos at the Badlar interest rate + 275 basis points maturing in 2014” and/or new bond or promissory note referred to as “Argentine Bond or Promissory Note in Argentine pesos at the Badlar interest rate + 300 basis points maturing in 2015”, issued on September 10, 2009, due in 6 semi-annual installments, the first 5 of which will be amortized at 16.66% and the last one at 16.70%, principal payable on March 10 and September 10 of each year, beginning on March 10, 2013. Interest is accrued and payable on a quarterly basis. As from the issuance date and through September 10, 2011, the amount related to the 300 basis points margin will be capitalized at Badlar rate and paid, and as from December 10, 2011, all interest will be paid in cash. |
The Bank executed an agreement on September 7, 2009, whereby it delivered government securities with a book value of 19,061 and received Bonar Badlar + 275 basis points in Argentine pesos maturing in 2014 for book value of 19,061, which were sold by December 31, 2009. Under Central Bank rules, the accounting of the exchange did not have impact in the consolidated financial statements of the Bank. Additionally, on September 9, 2009, it executed an agreement whereby it delivered guaranteed loans for a book value of 1,022 in exchange for Bonar Badlar + 300 basis points in Argentine pesos maturing in 2015 for a book value of 1,022, which were all classified for trading or financial intermediation (see note 4.4.b.1)ii). |
On April 29, 2010 the National Government issued the Decree No. 563 which provides for the restructuring of the National State debt for those bonds that were eligible for the exchange provisions of Decree No. 1735 dated December 9, 2004 and had not been submitted to it. At the date of issuance of these financial statements, the restructuring was in the launching stage. |
The accompanying consolidated financial statements should be read considering the circumstances previously mentioned. |
Legal actions |
The Argentine economic and financial situation worsened in late 2001, when the Argentine government suspended payments on the sovereign debt and imposed severe restrictions on cash withdrawals from financial institutions. |
The measures adopted by the Federal Executive Government with respect to the public emergency in political, economic, financial and foreign exchange matters (mainly, pesification of deposits denominated in US dollars) triggered a number of legal actions (known as recursos de amparo — constitutional rights protection actions), brought by individuals and companies against the Federal Government, the Central Bank and the financial institutions. |
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On December 27, 2006, the Argentine Supreme Court revoked prior instance judgments that ordered the reimbursement of deposits in US dollars and decided that depositors are entitled to reimbursement of their deposits switched to pesos at the Ps. 1.40-to-USD 1 exchange rate, adjusted by the CER through the payment date, and interest should be applied to such amount at a 4% rate p.a., which may not be compounded through the payment date. |
With regards to court deposit in US dollars, on March 20, 2007, the Argentine Supreme Court ruled establishing that the sums should be kept in their original currency. |
Taken into account the Central Bank rules (see note 4.4.l.2)), as of December 31, 2009, and 2008, the Bank booked in “Intangible assets” the amounts of 50,532 and 40,657, respectively, net of related amortizations, with respect to the payments and provisions made by the bank in relation to the previous order. |
Additionally, as of December 31, 2009 and 2008, the Bank recorded the additional liability (representing the difference between the original deposit and the amount capitalized as intangible asset) related to such regulation under the “Provisions” account in the amount of 19,979 and 18,233, respectively. Considering what has been mentioned in note 4.4.l.2), the Bank’s Management believes that there would be no significant effects, other than those recognized in accounts, that could derive from the final outcome of such actions. |
3. | BANK OPERATIONS |
3.1. | Agreement with the Misiones Provincial Government |
The Bank and the Misiones Provincial Government entered into a special-relationship agreement whereby the Bank was appointed, for a term of five years since January 1, 1996, as the Provincial Government’s exclusive financial agent, as well as revenue collection and obligation payment agent. |
In addition, on November 25, 1999, and on December 28, 2006, extensions to such agreement were agreed upon, making it currently effective through December 31, 2019. |
As of December 31 2009 and 2008, the deposits of the Misiones Provincial Government amounted to 458,678 and 389,076 (including 61,159 and 52,889 related to court deposits), respectively. |
3.2. | Agreement with the Salta Provincial Government |
The Bank and the Salta Provincial Government entered into a special-relationship agreement whereby the Bank was appointed, for a term of ten years since March 1, 1996, as the Provincial Government’s exclusive financial agent, as well as revenue collection and obligation payment agent. |
In addition, on February 22, 2005, such agreement was extended through March 1, 2016. |
As of December 31 2009 and 2008, the deposits of the Salta Provincial Government amounted to 259,912 and 453,723 (including 111,370 and 89,835 related to court deposits), respectively. |
3.3. | Agreement with the Jujuy Provincial Government |
The Bank and the Jujuy Provincial Government entered into a special-relationship agreement whereby the Bank was appointed, for a ten-year term since January 12, 1998, as the Provincial Government’s exclusive financial agent, as well as revenue collection and obligation payment agent. |
Additionally, on April 29, 2005, such agreement was extended through November 4, 2014. |
As of December 31 2009 and 2008, the deposits of the Jujuy Provincial Government amounted to 347,028 and 384,868 (including 54,815 and 49,201 related to court deposits), respectively. |
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3.4. | Uniones Transitorias de Empresas (joint ventures) |
a) | Banco Macro S.A. — Siemens Itron Business Services S.A. |
On April 7, 1998, the Bank entered into a joint venture agreement with Siemens Itron Business Services S.A. in which each holds a 50% equity interest, whereby a provincial data processing center would be provided to manage tax-related issues, to modernize tax collection systems and procedures in the Province of Salta, and to manage and perform the recovery of taxes and municipal assessments payable. |
As of December 31 2009 and 2008, the net assets of such joint venture recorded in the Bank’s consolidated financial statements through the proportionate consolidation method amounted to 3,986 and 4,153 respectively. |
Also, as of December 31 2009, 2008 and 2007, the net income recorded through the method mentioned in the previous paragraph, amounted to 7,346, 7,217 and 8,311, respectively. |
b) | Banco Macro Bansud S.A. — Montamat & Asociados S.R.L. |
On October 22, 2004, the Bank entered into an UTE (joint venture) agreement with Montamat & Asociados S.R.L under the name “BMB M&A — Unión Transitoria de Empresas”, in which each hold a 50% equity interest. The purpose of such agreement is to render audit services related to oil and gas royalties and fiscal easements in the province of Salta to optimize tax collection in such province. |
As of December 31 2009 and 2008, the net assets of such joint venture recorded in the Bank’s consolidated financial statements using the proportionate consolidation method amounted to 10 and 4, respectively. |
Also, as of December 31 2009 and 2008, net loss booked under the method mentioned in the previous paragraph was 12 and 78, respectively, while as of December 31, 2007, the Bank recorded net income of 4,276. |
3.5. | Legal Merger of Nuevo Banco Suquía S.A. |
On March 14, 2007, the Boards of Directors of Banco Macro S.A. and Nuevo Banco Suquía S.A. entered into a “Preliminary merger agreement”, whereby Nuevo Banco Suquía S.A. would merge with and into Banco Macro S.A. retroactively effective as from January 1, 2007, on the basis of the financial statements of such banks as of December 31, 2006. |
On June 4 and 5, 2007, the General Regular and Special Shareholders’ Meetings of Banco Macro S.A. and Nuevo Banco Suquía S.A., respectively, approved such preliminary merger agreement, as well as the consolidated balance sheet for merger purposes as of December 31, 2006, and the shares exchange relationship. Furthermore, Banco Macro S.A.’s shareholders’ meeting mentioned above approved the capital stock increase of Ps. 683,943,437 to Ps. 683,978,973 through the issuance of 35,536 common registered Class B shares with a face value of Ps. 1, each entitled to one vote, to be delivered to the minority shareholders of the absorbed bank. |
During 2007, the Central Bank ´s Board of Directors and the CNV (Argentine Securities Commission) authorized such merger. Additionally, the CNV and the BCBA authorized the public offering of shares to be delivered to the minority shareholders of Nuevo Banco Suquía S.A. |
Finally, on October 16, 2007, Banco Macro S.A. carried out the merger of Nuevo Banco Suquía S.A. with and into the former. |
On February 12, 2008, the shares issued were credited to the minority shareholders of the absorbed bank. |
Under Central Bank rules, the accounting of the merger did not have a significant impact on the consolidated financial statements of the Bank. |
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3.6. | Banco del Tucumán S.A. |
In line with its strategy to increase its market position in Argentina’s provinces, on November 24, 2005, the Bank signed a stock purchase agreement with Banco Comafi S.A. for 75% of the capital stock and voting rights of Banco del Tucumán S.A. Such event was approved by the Central Bank on March 6, 2006, through Board of Governors’ Resolution No. 50, as well as by the Technical Coordination Department of the Economy and Production Ministry on April 7, 2006. |
In this regard, on May 5, 2006, the Bank acquired 164,850 class “A” shares in Banco del Tucumán S.A., representing 75% of its capital stock, and on the same date took control over such institution. |
The Bank paid 45,961 in cash for the acquisition. In addition, the Bank shall pay over to Banco Comafi S.A. 75% of the amounts to be recovered over the ten years following the date of the abovementioned agreement related to consumer loan portfolio, for which an allowance was fully recorded as of the purchase date. As of the date of acquisition, such liabilities amounted to about 1,662 (as of December 31, 2009, it amounted to 68). Consequently, the total acquisition price amounted to 47,623. |
Under Central Bank rules, Banco del Tucumán S.A.’s net assets as of May 5, 2006 amounted to 40,065. |
Therefore, pursuant Central Bank rules, the Bank recorded a positive goodwill amounting to 17,574, which arises from the difference between the total acquisition price (47,623) and 75% of Banco del Tucumán S.A.’s shareholders’ equity as of such date (30,049). The goodwill is amortized using the straight line method over ten years pursuant to Central Bank rules. |
Additionally, from September through December 2006, Banco Macro S.A. acquired Class “C” shares in Banco del Tucumán S.A., representing 4.84% of the capital stock, which gave rise to an additional positive goodwill of 668. |
As of December 31, 2009, and 2008, the positive goodwill resulting from such acquisitions was recorded under “Intangible assets” in the amount of 11,567 and 13,395, respectively (net of amortizations for 6,676 and 4,849, respectively). |
Additionally, on November 28, 2006, the General Regular and Special Shareholders’ Meeting of Banco del Tucumán S.A. approved a capital increase of 21,980, establishing an additional paid-in capital of 26,171. During January 2007, Banco Macro S.A. subscribed the total increase, thus increasing its overall interest in Banco del Tucumán S.A. to 89.93%. |
Also, according to the service agreement signed on August 15, 2001, Banco del Tucumán S.A. will act as the exclusive financial agent of the Provincial Government until 2011. It also acts as the exclusive financial agent of the Municipality of San Miguel del Tucumán. |
As of December 31, 2009 and 2008, the deposits held by the Tucumán Provincial Government and the Municipality of San Miguel del Tucumán in Banco del Tucumán S.A. amounted to 426,832 and 405,577 (including 271,381 and 218,026 related to court deposits), respectively. |
3.7. | Legal merger of Nuevo Banco Bisel S.A. |
On March 19, 2009, the Boards of Directors of Banco Macro S.A. and Nuevo Banco Bisel S.A. entered into a “Preliminary merger agreement”, which established the incorporation of the latter to Banco Macro S.A. retroactively as from January 1, 2009, on the basis of the financial statements of such banks as of December 31, 2008 (see also notes 4.2. and 7.1.f)). |
On May 27, 2009, the General Regular and Special Shareholders’ Meetings of Banco Macro S.A. and Nuevo Banco Bisel S.A., respectively, approved such preliminary merger agreement, as well as the consolidated special balance sheet for merger purposes as of December 31, 2008, and the exchange ratio. Furthermore, Banco Macro S.A.’s Shareholders’ Meeting, mentioned above, approved the capital stock increase through the issuance of 1,147,887 common registered Class B shares with a face value of Ps. 1, each entitled to one vote, to be delivered to the minority shareholders of the absorbed bank (Sud Inversiones & Análisis S.A. and Macro Securities S.A. Sociedades de Bolsa). |
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Subsequently, the BCBA, the Central Bank and the CNV (Argentine securities commission), authorized the abovementioned merger, which was registered with the IGJ (Business Associations Regulatory Agency). Additionally, the CNV and the BCBA authorized the public offering of shares to be delivered to the minority shareholders of former Nuevo Banco Bisel S.A. |
Finally, on August 18, 2009, the Central Bank reported Nuevo Banco Bisel S.A.’s merger with and into Banco Macro S.A. |
In September 2009, the shares issued were accredited to the minority shareholders of the bank merged with and into the Bank. Additionally, during October 2009, Sud Inversiones & Análisis S.A. and Macro Securities S.A. Sociedad de Bolsa sold those shares to unrelated parties. (see also note 4.2.). |
Under Central Bank rules, the accounting of the merger did not have a significant impact on the consolidated financial statements of the Bank. |
3.8. | Banco Privado de Inversiones S.A |
After a period of negotiations, the Bank signed a share purchase agreement, under which, subject to satisfaction of certain conditions, including the approval of the transaction by the Central Bank, will acquire shares representing 100% of share capital and votes of Banco Privado de Inversiones S.A. for USD 23,3 millions. |
Banco Privado de Inversiones S.A. has a broad base of customers and businesses that will provide volume and experience in the credit card business, in a region where the Bank considers appropriate to expand their development. |
The transaction will enable the Bank to serve a greater number of customers with the structure that currently owns, to complement lines of business and to achieve greater economies of scale by providing, in addition, to Banco Privado S.A. a more efficient financing structure and to their clients the access to a network with greater geographical coverage. |
According to the last information published by the Central Bank, the following data are disclosed as of December 31, 2009: |
Total assets: 442,620 |
Total liabilities: 418,762 |
Total shareholders’ equity: 23,858 |
Number of branches: 2 |
At the date of issuance of these consolidated financial statements, the Central Bank has not issued a decision in this respect. |
4. | SIGNIFICANT ACCOUNTING POLICIES |
The preparation of the Bank’s consolidated financial statements requires Management to make estimates and assumptions to determine the recorded amounts of assets and liabilities, income, expenses and contingencies, as well as the related disclosures, as of each balance sheet date. However, uncertainty about theses assumptions and estimates could result in outcomes that require a material adjustment to the carrying amount of the asset or liability affected in future periods. |
In the process of applying the Bank’s accounting policies, management has exercised judgment and estimates in determining the amounts recognized in the financial statements. |
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4.1. | Consolidation and basis of presentation |
The Consolidated Financial Statements have been prepared in accordance with accounting principles issued by the Central Bank (Central Bank rules). |
For the purpose of these consolidated financial statements, certain disclosures related to formal legal requirements for reporting in Argentina have been omitted since they are not required for SEC (Securities and Exchange Commission) reporting purposes. |
Under Central Bank’s rules and FACPCE (Federación Argentina de Consejos Profesionales de Ciencias Económicas — Argentine Federation of Professional Council in Economic Sciences) Technical Resolutions, Banco Macro S.A. has consolidated the following subsidiaries: |
Equity | Equity | |||||||||||||||||||||
Investment | Investment | |||||||||||||||||||||
Percentage held of | amounts as of | amounts as of | ||||||||||||||||||||
Shares | Capital | December 31, | December 31, | |||||||||||||||||||
Company | Class | Number | Stock | Votes | 2009 | 2008 | ||||||||||||||||
Banco del Tucumán S.A. | Common | 395,341 | 89.932 | % | 89.932 | % | 182,755 | 137,741 | ||||||||||||||
Macro Bank Limited (a) | Common | 9,816,899 | 99.999 | % | 99.999 | % | 164,576 | 99,973 | ||||||||||||||
Macro Securities S.A. Sociedad de Bolsa (b) | Common | 12,776,680 | 99.921 | % | 99.921 | % | 28,374 | 17,477 | ||||||||||||||
Sud Inversiones & Análisis S.A. (b) | Common | 6,475,143 | 98.605 | % | 98.605 | % | 14,509 | 12,376 | ||||||||||||||
Macro Fondos S.G.F.C.I. S.A. (b) | Common | 327,183 | 99.936 | % | 99.936 | % | 1,503 | 1,180 | ||||||||||||||
Nuevo Banco Bisel S.A. (c) | Common | 841,682,603 | ||||||||||||||||||||
Preferred | 66,604,774 | 99.997 | % | 99.997 | % | — | 1,384,059 |
(a) | Consolidates with Sud Asesores (ROU) S.A. (voting rights: 100%, equity interest: 817). | |
(b) | Until March 31, 2008, Macro Fondos S.G.F.C.I. S.A. was consolidated into Sud Inversiones & Análisis S.A. As from such date it is consolidated into Macro Securities S.A. Sociedad de Bolsa. | |
(c) | See note 3.7. |
Intercompany transactions were eliminated in the consolidation process. |
In addition, as of December 31, 2007, the Bank consolidated its financial statements with Macro Valores S.A. and with Red Innova Administradora de Fondos de Inversión S.A. As of that date, these subsidiaries were not significant. |
On March 19, 2008, Banco Macro S.A. sold its shares in Macro Valores S.A. |
As of December 31, 2008, Red Innova Administradora de Fondos de Inversión settled the full amount of its liabilities and subsequently, in accordance with the decision approved by the Shareholders’ Meeting held December 19, 2008, it distributed all of its assets proportionately among its shareholders. |
Furthermore, the financial statements of Macro Bank Limited (consolidated with Sud Asesores (ROU) S.A.) were conformed to the Central Bank rules. Also, as they are originally stated in US dollars, they were translated into pesos following the procedures indicated below: |
(a) | Assets and liabilities were translated at the reference exchange rate or the exchange rate reported by the Central Bank trading room and effective for the foreign currency at the closing of transactions on the last business day of the years ended December 31, 2009 and 2008. |
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(b) | Figures related to the owners’ contributions (capital stock, additional paid-in capital and irrevocable capital contributions) were translated applying the effective exchange rates as of the date on which such contributions were paid in. |
(c) | Retained earnings were estimated by the difference between assets, liabilities and owners’ contributions, translated into pesos, as indicated above. |
(d) | The amounts of income were translated into pesos, as described in (a) above. The difference between retained earnings at beginning of year and retained earnings at year-end was recorded in “Financial income — Difference in quoted prices of gold and foreign currency’’ or “Financial expense — Difference in quoted prices of gold and foreign currency” accounts, as the case may be. |
4.2. | Comparative information |
The consolidated financial statements as of December 31, 2009, are presented comparatively with those of December 31, 2008 and 2007. |
Additionally, and mainly as a result of the legal merger of Nuevo Banco Bisel S.A. described en note 3.7., the Bank made certain reclassifications in the consolidated financial statements as of December 31, 2008 and 2007, so as to make them comparable with the current consolidated financial statements. |
4.3. | Restatement into constant pesos |
Professional accounting standards in Argentina establish that the financial statements should be stated in constant pesos. In a monetary stability context, the nominal currency is used as constant currency; however, during inflationary or deflationary periods, financial statements are required to be stated in constant currency as of the latest balance sheet date, recognizing the variations in the domestic wholesale price index (domestic WPI) published by the INDEC (Argentine Institute of Statistics and Censuses), in conformity with the restatement method under FACPCE Technical Resolution No. 6. |
The Bank’s consolidated financial statements reflect the changes in the peso purchasing power through February 28, 2003, under Presidential Decree No. 664/03, IGJ General Resolution No. 4/2003, CNV (Argentine Securities Commission) General Resolution No. 441, and Central Bank Communiqué “A” 3,921. Professional accounting standards provide that the restatement method established by Technical Resolution No. 6 should have been discontinued as from October 1, 2003. |
Before February 28, 2003, the financial statements were restated in constant currency on a monthly basis, using INDEC’s domestic WPI measurements. The restatement coefficient for a given month resulted from dividing the index value at the end of the month by the value at the beginning. The procedure is as follows: |
i) | Assets and liabilities are classified into monetary and non-monetary. |
ii) | Monetary assets and liabilities are those that are not adjusted for inflation, but generate a monetary gain (loss). The effect of inflation is broken down depending on its origin, i.e., monetary gain (loss) on financial intermediation, monetary gain (loss) on other transactions and monetary gain (loss) on other operating expenses. |
iii) | Non-monetary assets and liabilities, shareholders’ equity and statement-of-income accounts are restated. |
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4.4. | Valuation methods |
The main valuation methods used to prepare these consolidated financial statements as of December 31, 2009, and 2008, were: |
a) | Assets and liabilities denominated in foreign currency: |
The assets and liabilities denominated in US dollars were valued at Central Bank benchmark US dollar exchange rate effective as of the last business day of each year. Additionally, assets and liabilities denominated in other foreign currencies were translated at the exchange rate communicated by the Central Bank’s dealing room. Foreign exchange differences were recorded in the statement of income for each year. |
b) | Government and private securities: |
b.1) | Listed: |
i. | Holdings in special investment accounts: in accordance with the provisions of Central Bank Communiqués “A” 4,676, 4,861 of June 5, 2007, and October 30, 2008, as supplemented, the Bank chose to classify certain government securities as “Special investment accounts”. These government securities were valued at the acquisition cost defined in such communiqués, increased by the accrual of the internal rate of return as from the date of inclusion in this classification, net of the contra account, as further described below. |
When the market value of each security is lower than the book value, the accrual of the internal rate of return and the CER will be recorded in a contra balance sheet account created for this purpose, until the book value equals the market value. This contra account will be recognized in the income statement when the market value of the securities is above their book value. |
As provided by Central Bank Communiqué “A” 5,024, as of December 31, 2010, such valuation method should be fully settled, and no other holdings will be included therein. |
ii. | Holdings for trading or financial intermediation and instruments issued by the Central Bank: they were valued at the quoted price of each security effective at the last business day of each year. Differences in quoted market values were recorded in the statement of income for each fiscal year. |
b.2) | Unlisted: |
i. | Unlisted government securities: they were valued in accordance with Central Bank Communiqués “A” 4,898 and 3,911, respectively. Both communiqués, that specifically develop valuation method for certain assistance to the non-financial government sector, establish comparisons of present and book values, as the case may be, as well as the potential use of contra accounts. |
In particular, in the case of holdings of government securities without volatility published and included on the list of present values published by the Central Bank, Communiqué “A” 4,898 provides that they should be valued at the higher of the present value published by the Central Bank and the book value as of January 31, 2009, net of interest collected after such date and the related contra account, as further described below (book value). |
When the present value of these holdings is lower than their book value, the accrual of interest and, if applicable, of the adjustment resulting from applying CER will be recorded, on an accumulated basis, in a contra account created to such end until the book value equals the present value, and such contra account is reversed into income when the present value exceeds the book value. |
The present values published by the Central Bank are based on the yield curve for securities related to the same type of instrument, with normal and usual quoted price and of similar duration, according to the methodology published by such institution. |
ii. | Instruments issued by the Central Bank: they were valued at their cost value increased exponentially by their internal rate of return, as provided by Central Bank Communiqué “A” 4,414. |
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c) | Guaranteed loans — Presidential Decree No. 1,387/01: |
As of December 31, 2009 and 2008, they were valued in accordance with Central Bank Communiqués “A” 4,898 and 3,911, respectively. Both communiqués, that specifically develop valuation method for certain loans to the non-financial government sector, establish comparisons of present and book values, as the case may be, as well as the potential use of contra accounts. |
Particularly, in the case of guaranteed loans issued by the Argentine Government under Decree No. 1387/01, Communiqué “A” 4,898, establishes that they should be valued at the higher of the present value published by the Central Bank and the book value as of January 31, 2009, net of interest collected after such date and the related contra account (book value) as further explained in note 4.4.b.2).i. |
As mentioned in note 2., in 2009, the Bank entered into exchange agreements whereby it exchanged the guaranteed loans for a book value of 296,893 and received Argentina bonds (Bonar) at the Badlar interest rate + 275 basis points, in Argentine pesos maturing in 2014 for the same amount. These transactions did not have any effects in the income statement. |
As a consequence of such Communiqué as of December 31, 2008 the technical value of the guaranteed loans totaled 850,452, while the book value was 722,757; thus, the discount for those holding totaled 127,695. As of December 31, 2009 there was no discount to be booked. |
d) | Interest accrual: |
Interest has been accrued according to a compound interest formula in the period in which it was generated, except interest on transactions in foreign currency and those whose maturity does not exceed 92 days, on which interest has been accrued according to a simple interest formula. |
The Bank suspends the interest accrual whenever loan payments are not settled (generally, after 90 days) or when the recoverability of the collection of principal or interest accrued is doubtful. Accrued interest is considered part of the loan balance when determining the allowances for loan losses. Afterwards, interest is only recognized on a cash basis. |
e) | CER accrual: |
Receivables and payables have been indexed by the CER, wherever applicable, as follows: |
e.1) | Holdings in special investment accounts and unlisted government securities: as explained in notes 4.4.b.1).i. and 4.4.b.2).i., respectively. |
e.2) | Guaranteed loans: as explained in note 4.4.c). |
e.3) | Other loans and receivables from sale of assets: they were adjusted according to Communiqué “A” 3,507, and supplementary regulations, which established that payments made until September 30, 2002, were to be made under the original conditions of each transaction and would be considered prepayments. Since February 3, 2002, principal was adjusted by the CER through each year-end, where applicable. |
e.4) | Deposits and other assets and liabilities: they were adjusted by CER as of the last business day of each year. |
f) | Allowance for loan losses and provision for granted guarantees: |
These provisions have been calculated based on the estimated uncollectibility risk of the Bank’s credit portfolio, which, among other factors, results from the evaluation of the degree of debtors compliance and the guarantee/security supporting the respective transactions, under Central Bank Communiqué “A” 2,950, as supplemented, and the Bank’s provisioning policies. |
When loans covered by specific allowances are settled or generate a reversal of the allowances recorded in the current year, and in cases where the allowances set in prior years exceed what is considered necessary, the excess allowance is reversed with effects on income for the current year. |
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The recovery of receivables previously classified under “Debit-balance control memorandum accounts — Receivables classified as irrecoverable” are charged directly to income. |
The Bank assesses the credit risk related to possible commitments and determines the appropriate amount of allowances to be recorded. The allowances related to amounts recorded in memorandum accounts granted guarantees are included under “Provisions”. |
g) | Loans and deposits of government securities: |
They were valued at the quoted price of each security effective on the last business day of each year, plus the related accrued interest. Differences in quoted market values were recorded in the statement of income as of each year. |
h) | Other receivables from financial intermediation and Other liabilities from financial intermediation: |
h.1) | Amounts receivable from spot and forward sales pending settlement and amounts payable for spot and forward purchases pending settlement: they were valued based on the prices agreed upon for each transaction, plus related premiums accrued through the end of each year. |
h.2) | Securities and foreign currency to be received for spot and forward purchases pending settlement and to be delivered for spot and forward sales pending settlement: |
i) | Listed: they were valued at the effective quoted prices for each of them on the last business day of each year. Differences in quoted market values were recorded in the statement of income for each year. |
ii) | Unlisted: they were valued as provided by Central Bank Communiqué “A” 4,414, at their cost value increased exponentially by their internal rate of return. |
h.3) | Debt securities and certificates of participation in financial trusts: |
i. | Debt securities: they were valued as provided by Central Bank Communiqué “A” 4,414, at their cost value increased exponentially by their internal rate of return, translated into pesos pursuant to the method described in note 4.4.a), as the case may be. |
ii. | Certificates of participation in the Fideicomiso Financiero Suquía and Fideicomiso Financiero Bisel financial trust: they were valued based on the cost of shareholders’ equity of former Nuevo Banco Suquía S.A. and former Nuevo Banco Bisel S.A., respectively, plus interest accrued, net of redemptions. As of December 31, 2009, and 2008, an allowance was booked for the full amounts receivable booked on account of such certificates, as they were deemed unrecoverable. |
iii. | Other certificates of participation: they were stated at amortized cost value increased, as the case may be, by interest accrued until the last business day of each year, translated into pesos according to the method described in note 4.4.a), as the case may be. |
The values recorded, net of allowances recorded, do not exceed the recoverable values from the respective trusts. |
h.4) | Unlisted corporate bonds purchased: |
They were valued by the accrual method based on their internal rate of return, as provided by Central Bank Communiqué “A” 4,414 and supplementary regulations. |
h.5) | Non-subordinated corporate bonds issued: |
They were valued at the amount due for principal and interest accrued as of each year-end, translated into pesos pursuant to the method described in note 4.4.a), as the case may be. |
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i) | Assets subject to financial leases: |
They were valued at the net investment in the lease less unearned income and calculated in accordance with the conditions agreed upon in the respective agreements, by applying the interest rate imputed therein. |
j) | Investments in other companies: |
j.1) | In non-controlled financial institutions (less than 50% ownership interest), supplementary and authorized activities: |
i. | In Argentine pesos: they were valued at acquisition cost, plus the nominal value of share-dividends received, restated as explained in note 4.3. |
ii. | In foreign currency: they were valued at the acquisition cost in foreign currency, plus the nominal value of share-dividends received, translated into pesos in accordance with the criterion stated in note 4.4.a). |
Such net values do not exceed the values calculated by the equity method on the basis of the latest financial statements published by the companies. |
j.2) | In other non-controlled companies: they were valued at acquisition cost, plus the nominal value of share-dividends received, restated as described in note 4.3., net of allowances for impairment in value. Such net values do not exceed the values calculated by the equity method on the basis of the latest financial statements published by the companies. |
k) | Bank premises and equipment and other assets: |
They were valued at their acquisition cost, restated as explained in note 4.3., less the related accumulated depreciation calculated based on their estimated useful life using the straight line method. |
l) | Intangible assets: |
l.1) | Goodwill and organization and development costs (except differences due to court orders — Nondeductible for the determination of the computable equity): they were valued at their cost, restated as explained in note 4.3., less the related accumulated amortization, calculated under the straight line method over their estimated useful life. |
l.2) | Differences due to court orders (amparos) — Nondeductible for the determination of the computable equity: represent the difference between the amount of the original foreign currency translated at the exchange rate applied upon payment of the recursos de amparo (constitutional rights protection actions) and the amount recorded under Central Bank rules (convert into Argentine pesos at the Ps. 1.4 to USD 1 exchange rate, or its equivalent in other currencies, plus CER). Additionally, and as disclosed in Central Bank Communiqué “A” 3,916, since April 2003 the sums related to the amounts paid are amortized straight line over 60 months. |
In addition, the Central Bank informed the Bank through a notice dated August 4, 2008, that the permission established by Communiqué “A” 3,916 (allowing the difference between the amount of the “amparos” and the amounts recorded as liabilities to be capitalized as intangible assets) is applicable only to such differences which were actually paid. |
m) | Valuation of derivatives: |
m.1) | Put options sold on Boden 2012 and 2013 coupons: such options were valued at the exchange value of the bonds plus interest and the CER adjustment accrued on the last business day of each year- end. |
m.2) | Interest rate swap: this included the equivalent in pesos of the notional value in relation to which the Bank agreed to pay / charge a variable rate and charge / pay a fixed rate. |
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m.3) | Forward transactions without delivery of underlying asset: they were valued at the quoted price of the underlying assets upon maturity, effective on the last business day of each fiscal year. Differences in quoted market values were recorded in the statement of income of each year. |
m.4) | Put options purchased / call options sold: valued at the agreed-upon exercise price. |
In all cases, see also note 33. |
n) | Severance payments: |
The Bank charges these payments directly to income. |
o) | Provisions included in liabilities: |
The Bank carries certain contingent liabilities related to current or future claims, lawsuits and other proceedings, including those related to labor and other obligations. Liabilities are recorded when it is probable that future costs will be incurred and whenever such costs may be reasonably estimated. |
p) | Subordinated corporate bonds: |
They were valued at the amount due for principal and interest accrued as of each year, translated into pesos pursuant to the method described in note 4.4.a). |
q) | Shareholders’ equity accounts: |
q.1) | They are restated as explained in note 4.3., except for the “Capital Stock” account which has been kept at its original value. The adjustment resulting from its restatement as explained in note 4.3. was included in the “Adjustments to Shareholders’ Equity” account. |
q.2) | The purchase cost of own shares reaquired was debited to the “Unappropriated earnings” account. Furthermore, the face value of such shares was reclassified from “Outstanding shares” to “Shares in treasury”. The decrease in own shares reacquired as a result of the capital decrease was credited against unappropriated retained earnings (see also note 9). |
r) | Consolidated Statement of income accounts: |
r.1) | Accounts reflecting monetary transactions occurred in the fiscal years ended December 31, 2009, 2008 and 2007 (financial income and expenses, service-charge income and service-charge expenses, provision for loan losses, administrative expenses, etc.), were computed at their historical amount on a monthly accrual basis. |
r.2) | Accounts reflecting the effects of the sale, retirement or consumption of non-monetary assets were computed on the basis of restated amounts of such assets, restated as mentioned in note 4.3. |
s) | Statement of cash flows: |
For the purpose of reporting cash flows, cash and cash equivalents include the following accounts: Cash and Government and private securities which mature less than 90 days as from their date of acquisition. As of December 31, 2009, such securities total 379,871, while as of December 31, 2008 and 2007, the Bank had no such securities. |
5. | INCOME TAX AND MINIMUM PRESUMED INCOME TAX (TOMPI) |
As required by Central Bank’s rules, the Bank calculates income tax by applying the effective 35% rate to the estimated taxable income for each year, without considering the effect of temporary differences between book and taxable income. |
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In 1998, Law No. 25,063 established minimum presumed income tax for a ten-year term. At present, after subsequent extensions, such tax is effective through December 30, 2019. This tax is supplementary to income tax, while the latter is levied on the taxable income for the year, minimum presumed income tax is a minimum levy assessment by applying the 1% over the 20% of certain assets as provided by the law for financial institutions. Therefore, the Bank’s tax obligation for each year will be equal to the higher of these taxes. However, if minimum presumed income tax exceeds income tax in a given tax year, such excess may be computed as a payment on account of any income tax in excess of minimum presumed income tax that may occur in any of the following ten years, once accumulated net operating losses (NOLs) have been used. |
As of December 31, 2009, 2008 and 2007, the Bank accrued income tax expense of 659,250, 261,207 and 92,345, respectively. |
As of December 31, 2009 and 2008, the Bank maintained a total amount of 10,280 and 25,767, respectively, for minimum presumed income tax credit under “Other receivables”. Such credit is considered as an asset because the Bank estimated that it will be used within 10 years, as established by Central Bank Communiqué “A” 4,295, as supplemented. The Bank expects to use the tax credit as of December 31, 2009 in 2010. |
In addition as of December 31, 2009 and 2008, the Bank made income tax prepayments for 173,927 and 46,092, respectively, which were recorded in the “Other receivables” account. |
6. | DIFFERENCES BETWEEN CENTRAL BANK RULES AND PROFESSIONAL ACCOUNTING STANDARDS EFFECTIVE IN ARGENTINA |
Through Resolution CD No. 93/2005, the CPCECABA (Professional Council in Economic Sciences of the City of Buenos Aires) adopted technical resolutions and interpretations issued by FACPCE governing board through April 1, 2005. Subsequently, the CPCECABA, through Resolutions 42/2006, 34 and 85/2008, and 25 and 52/2009, approved Technical Resolutions Nos. 23 through 27, respectively. In this regard, Technical Resolutions No. 26 and 27 will be effective for the annual or interim-period financial statements for the fiscal years beginning January 1, 2011. |
These professional accounting standards differ, in certain valuation and disclosure aspects, from Central Bank rules. The differences between those standards, which the Bank deemed significant to these consolidated financial statements, are as follows: |
6.1. | Valuation standards |
a) | Holdings recorded in special investment accounts, unlisted government securities, unlisted instruments issued by Central Bank and guaranteed loans: they are valued in accordance with the regulations and standards issued by the Argentine Government and the Central Bank described in notes 4.4.b.1)i, 4.4.b.2) and 4.4.c). Additionally, effective loan-loss provisioning regulations issued by Central Bank establish that receivables from the nonfinancial government sector are not subject to loan-loss provisioning, whereas professional accounting standards require receivables to be compared with their recoverable value every time financial statements are prepared. |
The Bank’s particular situation in connection with these holdings and financing is as follows: |
a.1) | Holdings in special investment accounts: As of December 31, 2009 and 2008, the Bank recorded 659,371 and 448,305, respectively, for certain portfolio of Argentine government securities. According to the professional accounting standards, as the Bank does not show indications of keeping such holdings through their maturity, they should be valued at their market value. According to this valuation method, assets as of December 31, 2009, would have increased by 237,913, while assets as of December 31, 2008, would have decreased by 31,557. |
a.2) | Holdings of unlisted government securities: as of December 31, 2009, 2008 and 2007, the Bank recorded 78,865, 69,182 and 19,329, respectively. According to professional accounting standards, such assets should be stated at market value. According to this valuation method, assets as of December 31, 2009 and 2007, would have increased by 9,160 and 1,957, respectively, and as of December 31, 2008, assets would have decreased by 21,639. |
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a.3) | Unlisted instruments issued by the Central Bank: as of December 31, 2009 and 2008, the Bank recorded unlisted portfolio and used in repo transactions of Central Bank internal bills and notes for 4,860,850 and 2,636,437, respectively. According to professional accounting standards, such assets should be stated at market value. According to this valuation method, assets as of December 31, 2009 and 2008, would have decreased by 2,392 and 33,776, respectively. |
a.4) | Guaranteed loans Decree No. 1,387/01: as of December 31, 2009, 2008 and 2007, the Bank recorded 190,412, 722,757 and 729,862, respectively. According to professional accounting standards and considering the statements made in note 4.4.c), these assets should be valued at their present value. According to this valuation method, assets as of December 31, 2009, would have increased by 8,805 and decreased by 259,617 and 95,810, respectively. |
b) | Intangible assets: as of December 31, 2009, 2008 and 2007, the Bank capitalized under intangible assets 50,378, 40,090 and 51,975, respectively, net of the related amortization amounts, related to the foreign exchange differences of the reimbursement in original currency of certain deposits switched into pesos and the effect of court deposits dollarization. Such accounting treatment differs from the valuation and disclosure methods established by professional accounting standards, which require charging to expense the abovementioned amounts. According to this valuation method, assets as of December 31, 2009, 2008 and 2007, would have decreased by 50,378, 40,090 and 51,975, respectively. |
c) | As of December 31, 2009, 2008 and 2007, as mentioned in note 4.4.l.2), the Bank recorded the effects of the Argentine Supreme Court rulings dated December 27, 2006, and August 28, 2007, upon payment of such precautionary measures, in conformity with Central Bank indications in the notice dated August 4, 2008. According to the professional accounting standards, as of December 31, 2009, 2008 and 2007, the Bank should have recorded a liability of approximately 51,413, 46,923 and 63,014, respectively. According to this valuation method, liability as of December 31, 2009, 2008 and 2007, would have increased by 51,413, 46,923 and 63,014, respectively. |
d) | As of December 31, 2008, the Bank recorded 29,105 under Other receivables from financial intermediation — nonsubordinated corporate bonds issued by the Bank itself, mentioned in note 10.b.2) and b.3), respectively, valued as mentioned in note 4.4.h.4), and 56,738 under Other liabilities from financial intermediation and recorded the liabilities generated by the issuance thereof valued as mentioned in note 4.4.h.5). According to professional accounting standards, such repurchased corporate bonds should be considered settled. Consequently, liability as of December 31, 2008, would have decreased by 27,633. |
e) | Income tax: the Bank and its subsidiaries record income tax by applying the effective rate to the estimated taxable income without considering the effect of temporary differences between book and taxable income. In accordance with professional accounting standards, income tax should be recognized through the deferred tax method, which consists in recognizing (as receivable or payable) the tax effect of temporary differences between the book and tax valuation of assets and liabilities, and in subsequently charging them to income for the years in which such differences are reversed, considering the possible effects of utilizing net operating losses (NOLs) in the future. If the deferred tax method had been applied, as of December 31, 2009, 2008 and 2007, the Bank would have recorded an additional asset of 46,667, 78,009 and 64,415, respectively. |
f) | Business combinations: under the standards set forth by the Central Bank, business acquisitions are recorded according to the book values of the acquired company. Consequently, the difference between the purchase price and its interest valued by the equity method in the books of the acquirer, is recorded as positive goodwill (when the purchase price is higher than the interest valued by the equity method) or negative goodwill (when the purchase price is lower than the interest valued by the equity method), as the case may be. If goodwill is positive, Central Bank standards establish that such goodwill should be amortized under the straight-line method based on an estimated useful life of ten years. If goodwill is negative, Central Bank Communiqué “A” 3,984 establishes specific amortization methods; the maximum amortization allowed per annum is 20%. |
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According to professional accounting standards effective in Argentina, business combinations are recorded based on the market values of the acquired company’s identifiable net assets. Consequently, the difference between the purchase price and the identifiable net asset measurement value is recorded as positive or negative goodwill, as the case may be. If goodwill is positive, such goodwill (i) will depreciate systematically throughout the estimated useful life and (ii) will be compared with its recoverable value as of each year-end. If goodwill is negative, such goodwill will be allocated to income (loss) in accordance with the changes in the specific circumstances that created such negative goodwill. |
The Bank’s specific situation in relation to how business combinations are recorded is as follows: |
f.1) | Acquisition of Banco Bansud S.A.: under Central Bank standards, the Bank’s acquisition of Banco Bansud S.A. generated an original negative goodwill in the amount of 365,560. As of December 31, 2009, 2008 and 2007, such goodwill was fully amortized. |
According to professional accounting standards, the abovementioned purchase would have generated an original negative goodwill in the amount of 39,722 and, therefore, as of December 31, 2009, 2008 and 2007, the residual value of such goodwill would have totaled 9,254, 9,609 and 11,944, respectively. Consequently, assets as of December 31, 2009, 2008 and 2007, would have decreased by 9,254, 9,609 and 11,944, respectively. |
f.2) | Acquisition of Nuevo Banco Suquía S.A.: under Central Bank standards, the Bank’s acquisition of Nuevo Banco Suquia S.A. generated an original negative goodwill in the amount of 483. As of December 31, 2009, 2008 and 2007, such goodwill was recorded under Provisions (Liabilities). |
According to professional accounting standards, the abovementioned acquisition would have led to an original negative goodwill in the amount of 72,445 and the recognition of 38,043 of profit from the purchase. Therefore, as of December 31, 2009, 2008 and 2007, the residual value as of such goodwill would have totaled 58,299, 61,082 and 63,865, respectively. Consequently, liability as of December 31, 2009, 2008 and 2007, would have increased by 57,816, 60,599 and 63,382, respectively. |
f.3) | Acquisition of Banco del Tucumán S.A.: under Central Bank standards, the Bank’s acquisition of Banco del Tucumán S.A. (see also note 3.6.) generated an original positive goodwill in the amount of 18,242. As of December 31, 2009, 2008 and 2007, the residual value of such goodwill totaled 11,567, 13,395 and 15,222, respectively. |
According to professional accounting standards, the abovementioned acquisition would not have generated goodwill. Consequently, assets as of December 31, 2009, 2008 and 2007, would have decreased, as a result of the reversing of positive goodwill recorded under Central Bank standards, by 11,567, 13,395 and 15,222, respectively. |
Additionally, the valuation of identifiable net assets at market values generated adjustments, in addition to those specified in previous subsections, which as of December 31, 2009, 2008 and 2007, would have increased assets by 9,090, 21,160 and 27,326, respectively, |
f.4) | Acquisition of Nuevo Banco Bisel S.A.: under Central Bank standards, the Bank’s acquisition of Nuevo Banco Bisel S.A. generated an original positive goodwill in the amount of 66,042. As of December 31, 2009, 2008 and 2007, the residual value of such goodwill totaled 43,478, 50,082 and 56,686, respectively. |
According to professional accounting standards, the abovementioned purchase would have generated the original negative goodwill in the amount of 107,745 and, therefore, as of December 31, 2009, 2008 and 2007, the residual value of such goodwill would have totaled 96,881, 100,140 and 103,400, respectively. Consequently, assets as of December 31, 2009, 2008 and 2007, would have decreased by 140,359, 150,222 and 160,086, respectively. |
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Additionally, the valuation of identifiable net assets at market values generated adjustments, in addition to those specified in previous subsections, which as of December 31, 2009, 2008 and 2007, would have increased assets by 12,696, 48,755 and 54,158, respectively. |
g) | As of December 31, 2009, 2008 and 2007, the Bank recorded interest rate swap agreements in Memorandum accounts, as mentioned in note 4.4.m.2), in the amount of 157,917, 39,422 and 36,238, respectively. According to professional accounting standards effective in Argentina, the measurement of derivative financial instruments should be made at their net realizable value if they have quoted prices, or lacking this, using mathematical models that are appropriate in relation to the instrument’s characteristics and which use data that can be verified. If those standards had been applied, as of December 31, 2009, 2008 and 2007, the Bank should have recorded assets in the amount of 2,832, 3,560 and 2,446, respectively. |
If professional accounting standards would have been applied, Bank’s shareholders’ equity, as of December 31, 2009, 2008 and 2007, would have increased by around 3,984 and decreased by around 488,310 and 311,131, respectively. Consequently, income for the year ended December 31, 2009 and 2008, would have increased by around 492,294 and decreased by around 177,179, respectively. |
6.2. | Disclosure aspects |
There are certain disclosure differences between the criteria established by Central Bank and Argentine professional accounting standards. |
7. | RESTRICTED AND PLEDGED ASSETS |
As of December 31, 2009, and 2008, the following Bank’s assets are restricted: |
7.1) | Government and private securities : |
a) | Secured Bonds under Presidential Decree No. 1,579/02 for 24,945 and 22,211 (face value of 24,400), respectively, provided as security for the loan received from Banco de Inversión y Comercio Exterior S.A. (BICE) to finance the “Paso San Francisco” public work, in accordance with the note sent by the Bank on November 5, 2002, BICE’s reply dated November 18, 2002, and the security agreement covering the abovementioned securities dated January 29, 2004. |
b) | Central Bank notes (NOBACs) of 27,128 and 118,580 (for a face value of 26,700 and 112,281), respectively, used to perform forward foreign currency trading transactions through Rosario Futures Exchange (Rofex) and Mercado Abierto Electrónico S.A. (MAE). |
c) | NOBACs for an amount of 13,146 and 49,787 (for a face value of 13,000 and 47,600), respectively, used to guarantee the repayment of the loan in pesos agreed upon under the Global Credit Program for Micro-, Small- and Medium-sized Enterprises received from the Under-department of Small- and Medium-sized Enterprises and Regional Development (SSEPyMEyDR). |
d) | NOBACs for an amount of 2,010 and 1,569 (for a face value of 2,000 and 1,500), respectively, used as security for the Credit Program for Production and Employment Development in the Province of San Juan (Communiqué “A” 769, as supplemented). |
e) | NOBACs for 10,591 (for a face value of 10,426) as of December 31, 2009, used to perform interest rate swap transactions, through Mercado Abierto Electrónico S.A. (MAE). |
f) | Argentine Government Bonds in Argentine pesos at private Badlar + 275 basis points for an amount of 66,428 (face value of 80,000), as of December 31, 2009, used as security in favor of SEDESA, in replacement of former Nuevo Banco Bisel S.A.’s preferred shares to secure payment of all obligations undertaken in the sales agreement executed on May 28, 2007. The price payable was set at 66,240, plus 4% nominal interest rate p.a., to be compounded through its settlement which will be made before the expiration of the 15-year term as from the takeover date of former Nuevo Banco Bisel S.A. (August 11, 2021). |
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g) | As of December 31, 2008, the investment in Mercado de Valores de Buenos Aires S.A. includes an amount of 2,087 resulting from a stock exchange-regulated repurchase agreement executed on December 26, 2008, expiring on January 2, 2009, whereby Argentine government bonds in US dollars maturing in 2012 were paid, for a residual value of 1,250, which as of December 31, 2008, were secured on such market. As of December 31, 2009, after several renewals, the transaction was settled. |
h) | Other government and private securities for 810 and 218, respectively. |
7.2) | Loans: |
a) | Agreements for loans backed by pledges and unsecured loans for 9,876 and 20,367, respectively, provided as guarantee in favor of the Mypes II Trust Fund, in full compliance with the terms and conditions of the program called “Mypes II (a)” and under the Global Credit Program for Small-sized and Micro-enterprises. |
b) | Guaranteed Loans, Mortgage Bills and collateral mortgages for 356,127 as of December 31, 2008, securing the loan granted by the Central Bank to former Nuevo Banco Suquía S.A. and former Nuevo Banco Bisel S.A. to purchase “Argentine Government Bonds 2005, 2007 and 2012”, used for the deposit exchange option exercised by the holders of deposits with such banks. As mentioned in note 2, during February 2009, the Bank decided to prepay the amount owed under such loan, delivering part of the guaranteed loans and paying the rest in cash. |
7.3) | Other receivables from financial intermediation: |
a) | Special guarantee checking accounts opened at the Central Bank for transactions related to the electronic clearing houses and similar entities, for an amount of 242,426 and 208,482, respectively. |
b) | Contributions to the mutual guarantee association Risk Fund of Garantizar S.G.R. for 10,000 and 9,961, respectively, resulting from contributions amounting to 10,000 made by the Bank on December 21, 2009, and December 13, 2007, respectively, and to the Risk Fund of Macroaval S.G.R. for 5,368 and 5,000, as of December 31, 2009 and 2008, respectively, resulting from a contribution, of the abovementioned amount by the Bank on December 31, 2008, in its capacity as contributory partner of such company. Such contribution may be fully or partially reimbursed once two years have elapsed from the date of contribution. |
On December 18, 2009, Garantizar S.G.R. returned 80% of the original capital contributed in 2007 as partial settlement; whereas the final settlement will be made during the first quarter of 2010. |
c) | As of December 31, 2008, has an equity interests in the Risk Fund of Puente Hnos. S.G.R. for 3,986 resulting from a 4,000 contribution made by Macro Fondos Sociedad Gerente de Fondos Comunes de Inversión S.A. on October 19, 2007. On August 12, 2009, Macro Fondos Sociedad Gerente de Fondos Comunes de Inversión S.A. requested the reimbursement of the contribution made to the risk fund. In this regard, on October 20, 2009, Puente Hnos. S.G.R. reimbursed 4,000, net of the contingent risk fund of 142, which will be reimbursed as such assets are recovered. |
d) | As of December 31, 2008, other receivables of 1,141 |
7.4) | Investments in other companies: |
a) | As of December 31, 2009, and 2008, investments in Tunas del Chaco S.A., Emporio del Chaco S.A. and Proposis S.A. in the amount of 2,205, and 2,235, respectively, under the deferment of federal taxes, subscribed in accordance with the promotion system established by Law No. 22,021, as amended by Law No. 22,702. This system enables the payment of the abovementioned taxes to be deferred up to the fifth year after the launch of the project (in this case, 2007), while it sets forth that the investment must be kept in assets for a period of at least five years as from January 1 of the year following the year in which the investment was made (in this case 2003). |
b) | As of December 31, 2009, and 2008, this includes other investments in other companies in the amount of 1,453. |
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7.5) | Other receivables: |
a) | Security deposits related to credit card transactions for 30,008 and 20,094, respectively. |
b) | Other security deposits for 10,277 and 8,266, respectively. |
8. | TRANSACTIONS WITH RELATED PARTIES |
Banco Macro S.A.’s receivables / payables and income (loss) from transactions performed with subsidiaries and related parties are as follows. As mentioned in note 4.1., transactions with subsidiaries were eliminated in the consolidation process: |
Other | ||||||||||||||||||||||||
Macro | subsidiaries | |||||||||||||||||||||||
Banco del | Macro | Securities S.A. | and related | |||||||||||||||||||||
Tucumán | Bank | Sociedad de | parties | Total | Total | |||||||||||||||||||
S.A. | Limited | Bolsa | (1) | 2009 | 2008 | |||||||||||||||||||
ASSETS | ||||||||||||||||||||||||
Cash | — | 2,996 | — | — | 2,996 | 2,785 | ||||||||||||||||||
Loans | — | — | — | 13,216 | 13,216 | 41,390 | ||||||||||||||||||
Other receivables from financial intermediation | 70,100 | — | 5 | — | 70,105 | 92,489 | ||||||||||||||||||
Assets subject to financial leases | — | — | — | 2,462 | 2,462 | 581 | ||||||||||||||||||
Other receivables | — | — | — | 14,700 | 14,700 | 535 | ||||||||||||||||||
Items pending allocation | 4 | — | — | — | 4 | 4 | ||||||||||||||||||
Total assets | 70,104 | 2,996 | 5 | 30,378 | 103,483 | 137,784 | ||||||||||||||||||
LIABILITIES | ||||||||||||||||||||||||
Deposits | — | 583 | 4,900 | 125,007 | 130,490 | 78,481 | ||||||||||||||||||
Other liabilities from financial intermediation | 70,073 | — | 107 | — | 70,180 | 104,789 | ||||||||||||||||||
Other liabilities | 64 | — | — | — | 64 | 93 | ||||||||||||||||||
Total liabilities | 70,137 | 583 | 5,007 | 125,007 | 200,734 | 183,363 | ||||||||||||||||||
MEMORANDUM ACCOUNTS | ||||||||||||||||||||||||
Debit Balance accounts — Control | — | 261,790 | — | 170,849 | 432,639 | 317,920 | ||||||||||||||||||
Credit Balance accounts — Contingent | — | 37,967 | 2,213 | — | 40,180 | 2,213 | ||||||||||||||||||
Credit Balance accounts — Derivatives (2) | — | — | — | — | — | 35,992 |
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Macro | Other | |||||||||||||||||||||||||||
Securities | subsidiaries | |||||||||||||||||||||||||||
Banco del | Macro | S.A. | and related | |||||||||||||||||||||||||
Tucumán | Bank | Sociedad | parties | Total | Total | Total | ||||||||||||||||||||||
S.A. | Limited | de Bolsa | (1) | 2009 | 2008 | 2007 | ||||||||||||||||||||||
INCOME (LOSS) | ||||||||||||||||||||||||||||
Financial income | 1,249 | — | 6 | 1,539 | (2) | 2,794 | 6,407 | 169 | ||||||||||||||||||||
Financial expenses | (3,456 | ) | (4 | ) | — | (1,565 | ) | (5,025 | ) | (4,134 | ) | (4,825 | ) | |||||||||||||||
Service-charge income | 25 | 6 | 46 | 460 | 537 | 235 | 410 | |||||||||||||||||||||
Service-charge expenses | — | — | — | — | — | — | (1 | ) | ||||||||||||||||||||
Other income | 5,898 | — | — | 1 | 5,899 | 8,068 | 4,967 | |||||||||||||||||||||
Total income | 3,716 | 2 | 52 | 435 | 4,205 | 10,576 | 720 | |||||||||||||||||||||
(1) | Related to receivables from and payables to other related parties to the Bank in the normal course of business, under normal market conditions, in terms of interest rates and prices, as well as guarantees required. | |
(2) | In 2009, the Bank has recorded foreign currency trading transactions without delivery of the underlying asset and involving related parties, in its memorandum accounts. According to the Bank’s policy, they are matched in terms of amounts and maturity with transactions carried out with third parties who are not related parties. As of December 31, 2009 and 2008, although there is no position for these transactions, the net intermediation income from such transaction generated earnings for the year of around 113 and 311, respectively. |
9. | CAPITAL STOCK |
As of December 31, 2009, 2008 and 2007, the legal capital structure without considering the retroactive accounting effects of the legal merger of Nuevo Banco Bisel S.A. mentioned in note 3.7., is as follows: |
SHARES | CAPITAL STOCK | |||||||||||||||||||||||
Votes | Pending | |||||||||||||||||||||||
per | Issued and | issuance or | In | |||||||||||||||||||||
Class | Number | share | outstanding | distribution | treasury | Paid-in | ||||||||||||||||||
Registered Class A shares of common stock | 11,235,670 | 5 | 11,236 | — | — | 11,236 | ||||||||||||||||||
Registered Class B shares of common stock | 672,743,303 | 1 | 672,707 | 36 | — | 672,743 | ||||||||||||||||||
Total 2007 | 683,978,973 | 683,943 | 36 | — | 683,979 | |||||||||||||||||||
Registered Class B shares of common stock (1) | — | 1 | 36 | (36 | ) | — | — | |||||||||||||||||
Acquired Registered Class B shares of common stock | — | 1 | (75,542 | ) | — | 75,542 | — | |||||||||||||||||
Total 2008 | 683,978,973 | 608,437 | — | 75,542 | 683,979 | |||||||||||||||||||
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SHARES | CAPITAL STOCK | |||||||||||||||||||||||
Votes | Pending | |||||||||||||||||||||||
per | Issued and | issuance or | In | |||||||||||||||||||||
Class | Number | share | outstanding | distribution | treasury | Paid-in | ||||||||||||||||||
Acquired Registered Class B shares of common stock | — | 1 | (15,100 | ) | — | 15,100 | — | |||||||||||||||||
Capital stock decrease — Registered Class B shares of common stock (2) | (60,000,000 | ) | 1 | — | — | (60,000 | ) | (60,000 | ) | |||||||||||||||
Capital stock increase — Registered Class B shares of common stock (3) | 1,147,887 | 1 | 1,148 | — | — | 1,148 | ||||||||||||||||||
Capital stock decrease — Registered Class B shares of common stock (4) | (30,641,692 | ) | 1 | — | — | (30,642 | ) | (30,642 | ) | |||||||||||||||
Total 2009 | 594,485,168 | 594,485 | — | — | 594,485 | |||||||||||||||||||
As of December 31, 2009: | ||||||||||||||||||||||||
Registered Class A shares of common stock | 11,235,670 | 5 | 11,236 | — | — | 11,236 | ||||||||||||||||||
Registered Class B shares of common stock | 583,249,498 | 1 | 583,249 | — | — | 583,249 | ||||||||||||||||||
Total 2009 | 594,485,168 | 594,485 | — | — | 594,485 | |||||||||||||||||||
(1) | Related to the capital increase through the issuance of Ps. 35,536 new book-entry Class B shares of common stock entitled to one vote and with a face value of Ps. 1 per share, delivered to the minority shareholders of Nuevo Banco Suquía S.A. in the legal merger process of that bank (see also note 3.5). | |
(2) | Related to the reduction of the capital stock by 60,000,000 registered Class B shares entitled to 1 vote each with a face value of Ps. 1 per share. These shares were included in the Bank’s portfolio and were acquired under section 68, Law No. 17,811, as a result of the macroeconomic context and fluctuations that the capital market was going through in general. On April 21, 2009, and after BCBA authorization, the Bank’s General Regular and Special Shareholders’ meeting approved the abovementioned capital reduction. During July 2009, the CNV authorized, the I.G.J. registered, and the Central Bank consented to the capital stock reduction. | |
(3) | Related to the capital increase through the issuance of Ps. 1,147,887 of new common, registered Class B shares with a face value of Ps. 1, each one entitled to one vote, delivered to the minority shareholders of former Nuevo Banco Bisel S.A., in the legal merger process of that bank (see also note 3.7.). | |
(4) | Related to the reduction of the capital stock by 30,641,692 Class B registered shares each one entitled to one vote, with a face value of Ps 1 per share. These shares were included in the Bank’s portfolio and were acquired under section 68, Law No. 17,811 for the same reasons mentioned in paragraph (2) above. On September 10, 2009, the Bank’s General Regular and Special Shareholders’ meeting approved the abovementioned capital reduction subject to the BCBA’s consent. On November 23 and December 29, 2009 and January 15 and March 25, 2010, the BCBA, consented to such capital reduction, the CNV approved it, the IGJ recorded it and the Central Bank acknowledged it, respectively. |
In addition, net income per common share for the fiscal years ended December 31, 2009, 2008 and 2007, was computed by dividing net income by the weighted average number of outstanding common shares for each year. |
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10. | CORPORATE BONDS ISSUANCE |
The amounts recorded in the consolidated financial statements related to corporate bonds are as follows: |
CORPORATE BONDS | Remaining of | |||||||||||||||
Original face | face value as of | As of December, 31 | ||||||||||||||
Class | value | 12/31/2009 | 2009 | 2008 | ||||||||||||
Subordinated | USD | 4,000,000 | a) | USD | 400,000 | 963 | 1,802 | |||||||||
Subordinated — Class 1 | USD | 150,000,000 | b.1) | USD | 150,000,000 | 571,510 | 519,879 | |||||||||
Non-subordinated — Class 2 | USD | 150,000,000 | b.2) | USD | 106,395,000 | 418,257 | 419,378 | |||||||||
Non-subordinated — Class 3 | USD | 100,000,000 | b.3) | USD | 63,995,000 | 198,478 | 305,495 | |||||||||
Total | 1,189,208 | 1,246,554 | ||||||||||||||
Maturities of the corporate bonds as of December 31, 2009, are as follows: |
Fiscal Year | Amounts | |||
2010 | 18,687 | |||
2012 | 197,066 | |||
2017 | 403,950 | |||
2036 | 569,505 | |||
Total | 1,189,208 | |||
a) | On January 20, 1997, the general special shareholders’ meeting of former Banco de Salta S.A. (which was absorbed by the Bank in 1999) approved issuing Subordinated Corporate Bonds in the amount of USD 4,000,000 to exercise the power granted to it by the second clause of the Loan Agreement entered into with former Banco Provincial de Salta on June 28, 1996. In addition, the general special shareholders’ meeting of former Banco de Salta S.A. held on May 29, 1997, approved the IPO of such Corporate Bonds. Through Resolution No. 1,006, dated December 19, 1997, the CNV authorized the IPO of former Banco de Salta S.A. for the issuance of Corporate Bonds, and it also approved the public offering of such bonds. | |
Through December 31, 2009, the Bank had amortized the equivalent of USD 3,600,000 (original value). The installments of the corporate bonds were settled by the Bank in the original currency until February 3, 2002, the day on which the amounts payable were switched into pesos at Ps. 1-to-USD 1, adjusted by CER. | ||
b) | On September 1, 2006 and June 4, 2007, the general regular shareholders’ meeting approved the creation, and subsequent extension, of a Global Program for the Issuance of simple Corporate Bonds in a short, medium or long term, either subordinated or non-subordinated, with or without guarantee, in accordance with the provisions of Law No. 23,576, as amended by Law No. 23,962, and further applicable regulations, up to a maximum amount outstanding at any time during the term of the program of USD 700,000,000 (seven hundred million US dollars), or an equal amount in other currencies, under which it will be possible to issue different classes and/or series of corporate bonds denominated in US dollars or other currencies and reissue the successive classes or series to be amortized. |
b.1) | On December 18, 2006, under the abovementioned Global Program, Banco Macro S.A. issued the 1st series of Class 1 subordinated notes for a face value of USD 150,000,000 (US dollars one hundred and fifty million). The main characteristics of this issuance are: |
• | Included in the Bank’s required minimum capital (computable equity), as established by Communiqué “A” 4,576. |
• | The notes fall due within a 30-year term, with full amortization upon maturity (December 18, 2036), with a full redemption option in 10 years as from the issuance date. |
• | Interest payments will be made with a semiannual frequency (June 18 and December 18, every year). |
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• | During the first 10 years, the interest rate will be a fixed one (9.75%), and a variable one for the remaining years (six-month LIBOR, plus 7.11%). As established by Communiqué “A” 4,576 the interest rate payable can be increased only once over the life of the instrument and subsequent to the 10-year term as from their issuance. |
• | They do not include covenants that change the subordination order. |
• | No interest on the notes will be neither fall due and payable if: (i) payments of such interest exceed the distributable amount, as defined in the pricing supplement dated November 23, 2006; (ii) there is a general prohibition by the Central Bank; (iii) the Bank is subject to the provisions of sections 34 or 35 bis, Financial Institutions Law; (iv) the Bank is receiving financial assistance from the Central Bank under Article 17 of Central Bank Charter; (v) the Bank is not in compliance with or have failed to comply in a timely basis with reporting obligations to the Central Bank; and/or (vi) the Bank is not in compliance with minimum capital requirements (both on an individual and consolidated basis) or with minimum cash reserves (on average). |
• | The unpaid interest is not cumulative. |
• | They have authorizations both for their public offering and their listing on domestic or foreign stock exchanges or markets. |
• | In no case, the payment of financial services may exceed net unappropriated retained earnings as per the financial statements for the last fiscal year, with an external auditor’s report, which should be appropriated to a reserve created to such end, as established by Communiqué “A” 4,576. |
The Bank used the funds from such issuance to grant loans. |
b.2) | On January 29, 2007, the Bank issued the 1st series of Class 2 nonsubordinated corporate bonds at a fixed rate of 8.5% p.a., simple, not convertible into shares, fully amortizable upon maturity (February 1, 2017), for a face value of USD 150,000,000 (one hundred and fifty million US dollars), under the terms and conditions set forth in the price supplement dated January 10, 2007. Interest will be paid semiannually on February 1 and August 1 of every year. Additionally, the Bank has the option to redeem such issuance, either fully or partially, at any time and periodically. The Bank used the funds from such issuance to grant loans. |
b.3) | On June 7, 2007, the Bank issued the 1st series of Class 3 nonsubordinated corporate bonds (peso-linked notes) at a fixed rate over principal in pesos of 10.75% p.a., simple, not convertible into shares, fully amortizable upon maturity (June 7, 2012), for a face value of USD 100,000,000 (one hundred million US dollars), under the terms and conditions set forth in the price supplement dated May 18, 2007. Interest will be paid semiannually on June 7 and December 7 of every year. Additionally, the Bank may fully redeem the issuance for tax purposes. The Bank used the funds from such issuance to grant loans. |
On August 16, 2007, the SEC authorized the abovementioned exchange offers mentioned in b.1) through b.3). |
Because of the macroeconomic context, as of December 31, 2009, the Bank repurchased nonsubordinated corporate bonds of Class 2 and 3 for a face value amount of USD 79,610,000 (43,605,000 and 36,005,000, respectively), which were fully settled. Consequently, the Bank recognized total income for such repurchases amounting to 101,291 (69,071 for the year ended December 31, 2009). |
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11. | ITEMS IN CUSTODY |
11.1. | Portfolio Management |
a) | On March 1, 1996, former Banco de Salta S.A. (which was absorbed by the Bank in 1999) and the Government of the Province of Salta entered into an Agreement to Manage the Loan Portfolio of former Banco Provincial de Salta related to the nonfinancial private sector, whereby the Bank undertakes to perform all acts necessary to manage such portfolio. In consideration thereof, the Province of Salta recognizes to the Bank a percentage of the amounts effectively recovered. |
As of December 31, 2009, and 2008, the loans portfolio managed for principal and interest, after application adjustments, amounted to 14,359 and 14,434, respectively. |
b) | By virtue of the agreement formalized on August 11, 1998, between former Banco de Jujuy S.A. (which was absorbed by the Bank in 2000) and the Government of the Province of Jujuy, the Bank undertakes to perform all acts necessary to manage the loan portfolio of the former Banco de la Provincia de Jujuy and to provide a monthly report on the tasks performed. In consideration thereof, the Province of Jujuy recognizes to the Bank, for all accounts and as a lump-sum and total consideration, a percentage of the amounts actually recovered. |
As of December 31, 2009 and 2008, the loans portfolio managed amounts to 43,238 and 43,388, respectively. |
c) | On April 6, 2001, through Provincial Decree No. 806, the Ministry of the Treasury of the Province of Salta approved an extension to the “Contract for the service of collecting, processing and arranging information, managing the loan portfolio and performing collection procedures related to the receivables of the IPDUV (Provincial Institute of Urban and Housing Development)” entered into on March 27, 2001, between such agency and the former Banco Macro S.A. Through that extension, the Bank will provide to the IPDUV, among others, the service of collecting the installments payable by successful bidders for housing and a service of performing collection procedures related to such institute’s receivables. In consideration thereof, the IPDUV recognizes to the Bank a percentage of the amounts effectively recovered. |
As of December 31, 2009 and 2008, the loans portfolio managed amounts to 78,911 and 84,508, respectively. |
d) | On August 19, 2002, ABN AMRO Bank N.V. Sucursal Argentina, as trustee, the former Scotiabank Quilmes S.A., as trustor, Banco Comafi S.A., as collecting agent and manager and the former Banco Bansud S.A. (currently Banco Macro S.A.), entered into an agreement for the LAVERC financial trust, whereby former Banco Bansud S.A. would be in charge of the collection management, custody, settlement and any other task related to the corpus assets which were originally recorded in the branches of former Scotiabank Quilmes S.A. |
As of December 31, 2009 and 2008, the portfolio managed by the Bank amounted to 114,328 and 124,982, respectively. |
e) | On June 30, 2006, the Bank and Sud Inversiones y Análisis S.A. entered into a management and custody agreement regarding the “RETUC 1” trust loan portfolio. |
As of December 31, 2009 and 2008, the portfolio managed by the Bank for principal and accrued interest amounted to 58,863 and 62,397, respectively. |
f) | On December 31, 2008, the Bank entered into a management and custody agreement regarding the “BATUC I” trust loan portfolio. As of December 31, 2009 and 2008, the portfolio managed by the Bank for principal and accrued interest amounted to 17,903 and 18,455, respectively. |
g) | In addition, as of December 31, 2009 and 2008, the Bank had under its management other portfolios for total amounts of 75,441 and 72,260, respectively. |
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11.2. | Mutual Funds | ||
As of December 31, 2009, the Bank, in its capacity as Depository Company, held in custody the shares of interest subscribed by third parties and securities from the following mutual funds (FCI): |
Shareholders’ | Investments | |||||||||||
Fund | Shares of interest | equity | (a) | |||||||||
Pionero Pesos | 414,755,096 | 562,343 | 388,033 | |||||||||
Pionero Renta Ahorro | 64,186,694 | 94,939 | 91,351 | |||||||||
Pionero Latam | 1,881,140 | 7,481 | 6,638 | |||||||||
Pionero FF – Fideicomiso Financieros | 35,583,867 | 46,729 | 45,838 | |||||||||
Pionero Renta | 3,850,256 | 10,069 | 9,656 | |||||||||
Pionero Acciones | 1,452,743 | 3,363 | 3,272 | |||||||||
Pionero Renta Dólares | 3,037,512 | 5,278 | 4,946 | |||||||||
Pionero América | 351,823 | 1,645 | 1,478 | |||||||||
Galileo Event Driven F.C.I. | 10,429,862 | 67,657 | 57,746 | |||||||||
Galileo Argentina F.C.I. | 2,142,564 | 10,506 | 8,726 |
(a) | “Memorandum accounts – Debit-balance accounts – Control – Other” includes mainly items in custody. Consequently, this account includes the above mentioned amounts related to the mutual funds’ investment portfolios. |
12. | BANK DEPOSITS GUARANTEE INSURANCE SYSTEM |
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13. | TRUST AGREEMENTS |
13.1. | Interest in trusts for investment purposes. | ||
As of December 31, 2009 and 2008, the amounts recorded in the Bank’s consolidated financial statements for certificates of participation (net of allowances for 224,193 and 223,893, respectively) and debt securities held in financial trusts under “Other receivables from financial intermediation — Other receivables not covered by debtors classification regulations”, amounted to: |
Financial trust | 12/31/2009 | 12/31/2008 | ||||||
Certificates of participation: | ||||||||
Luján (a) | 77,348 | — | ||||||
TST & AF (b) | 46,733 | 33,148 | ||||||
Tucumán (c) | 25,163 | 35,164 | ||||||
Gas Tucumán I (d) | 8,730 | 12,191 | ||||||
Godoy Cruz (e) | — | 14,642 | ||||||
Others (f) | 7,997 | 18,771 | ||||||
Subtotal certificates of participation | 165,971 | 113,916 | ||||||
Debt securities: | ||||||||
Underwriting agreements (g) | 70,645 | 136,513 | ||||||
San Isidro (h) | 82,925 | 41,766 | ||||||
Created by Decree 976-01 (i) | 31,570 | — | ||||||
Others | 21,647 | 48,868 | ||||||
Subtotal debt securities | 206,787 | 227,147 | ||||||
Total interest in trusts (1) | 372,758 | 341,063 | ||||||
(1) | See also note 24. | |
(a) | Luján Trust | |
On May 20, 2003, the Luján trust was created for the purpose reduce the credit risk of the financing granted by Banco Macro S.A. to Federalia S.A. de Finanzas. | ||
The trust issued different classes of certificates of participation, all of them entitled to vote but with different economic rights. | ||
The main asset managed by the trust involves the real estate properties located in the districts of Luján, Navarro and General Rodríguez in the Province of Buenos Aires. | ||
As of December 31, 2007, the Bank was the beneficiary of 100% of the certificates issued by the trust. | ||
On June 6, 2008, the Bank sold on credit all of the certificates of participation to Federalia S.A. de Finanzas. | ||
On September 16, 2009, the Bank entered into an agreement with Federalia S.A. de Finanzas, whereby the Bank repurchased the 100% of this trust’s certificates. The Bank paid the price of this transaction part in cash and the rest by the settlement of the loan mentioned before. | ||
As per the latest accounting information available to date, corpus assets measured at cost basis amounted to 49,423. The recoverable value of corpus assets exceeds the Bank’s book values. | ||
This trust will end with the settlement of the certificates of participation and/or the sale of corpus assets. | ||
(b) | TST & AF Trust | |
On July 14, 1999, Austral Financial LLC, in its capacity as trustor entered into a trust agreement known as TST & AF Financial Trust. | ||
The purpose of the trust is to develop a real estate project in Puerto Madero (City of Buenos Aires) and the subsequent sale thereof to settle the certificates of participation. Therefore, it will terminate 30 years after its execution date and/or the date in which the project is paid in full, sold or otherwise fully dispose of. |
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The Trust issued certificates of participation with economic rights proportional to the capital invested by each Beneficiary. However, the trust is controlled jointly by all certificate-of-participation holders. | ||
As of December 31, 2009 and 2008, Banco Macro S.A. is the beneficiary of 50% and 33% of the certificates of participation issued by the trust, respectively. | ||
As per the latest accounting information available to date, corpus assets amounted to about 173,948. | ||
(c) | Tucumán Trust | |
On August 31, 2005, Federalia Sociedad Anónima de Finanzas, Maxifarm S.A. and Gabrinel S.A., in their capacity as trustors, entered into a trust agreement that created the financial trust “Fideicomiso Financiero Tucumán”.The trustors assigned to the trust debt securities issued by the trust “Fideicomiso República”, the purpose of which is the recoverability of certain assets, mainly loans and real property of former Banco República. | ||
Tucumán Trust issued certificates of participation Class “A” and Class “B” (subordinated to Class “A”). The unanimous vote of all certificates of participation is required to control the trust. | ||
As of December 31, 2007, Banco Macro S.A. held the Class “A” certificates. | ||
On June 6, 2008, partial settlements of the Tucuman Trust ´s certificates were made by the Trust. In addition Banco Macro S.A. acquired the rest of Class “B” certificates. Consequently, since that date, Banco Macro S.A. owns 100% of the trust certificates. | ||
As of December 31, 2009, only class B certificates, entitled to the Trust equity, were pending payment. | ||
As per the latest accounting information available to date, corpus assets (mainly, loans granted) amounted to about 31,452. | ||
This trust will end with the full settlement of the certificates of participation. | ||
(d) | GAS Tucumán I Trust | |
On July 31, 2006, Sud Inversiones & Análisis S.A., as Trustee, and Gasnor S.A., as Trustor, entered into a trust agreement called “Fideicomiso Financiero GAS Tucumán I”. The purpose of this trust is to collect the receivables (granted by Gasnor S.A.) accrued against customers who joined the plan related to the construction of the natural gas distribution network for new clients in the city of San Miguel de Tucumán, to settle the certificates to be issued. | ||
In addition, Banco Macro S.A. granted a loan to Gasnor S.A. to finance the abovementioned construction works. Such loan provides that Gasnor S.A. may settle its payable by delivering such certificates of deposit to Banco Macro S.A. | ||
As of the date of issuance of these financial statements, certificates of participation were issued for a face value amount of 18,942 which were assigned to Banco Macro S.A.; the remaining balance of which amounted to 8,516. | ||
According to the accounting information available as of the date of issuance of these consolidated financial statements, the corpus assets totaled 11,587. | ||
This trust will end with the full settlement of the certificates of participation. | ||
(e) | Godoy Cruz Trust | |
On August 29, 2006, Banco Finansur S.A., as trustee, and Corporación de los Andes S.A., as trustor, entered into an agreement to create the trust called “Fideicomiso Financiero Godoy Cruz”. |
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The trustor assigned to the trust “Fideicomiso Godoy Cruz” buildings and plots of land located in the Godoy Cruz department, San Francisco del Monte district, Province of Mendoza. | ||
In addition, Class “A”, Class “B” (subordinated to the Class “A” certificates of participation) and Class “C” (subordinated to Class “A” and Class “B”) certificates of participation were issued. The unanimous vote of all certificates of participation is required to control the trust The purpose of the trust is to sell the assets mentioned above and to use the proceeds to settle the certificates of participation issued. | ||
As of December 31, 2008, Banco Macro S.A. was beneficiary of the Class “A” certificates of participation. | ||
As of September 16, 2009, Banco Macro S.A. sold the 100% of its interest in this Trust to an unrelated company. | ||
(f) | Others | |
Including Fideicomiso Bisel, which was created within the framework of the reorganization process of former Banco Bisel S.A., as established by section 35 bis, Law No. 21,526, on May 21, 2002, with assets transferred by former Banco Bisel S.A., and with Banco de la Nación Argentina being appointed as trustee (replaced by Sud Inversiones y Análisis S.A. as from May 20, 2008). The purpose of the trust is to realize the managed assets and settle the certificates of participation issued. As of December 31, 2009, and 2008, Banco Macro S.A., is beneficiary of 100% of the certificates issued by such trust. Additionally, an allowance was booked for the full amounts receivable booked on account of such certificates, since they were deemed unrecoverable. | ||
(g) | It relates to prepayments towards the placement price of trust securities of the financial trusts under public offerings, made by the Bank through underwriting agreements, such as Consubond and Megabono, among others. The assets managed for these trusts are mainly related to securitizations of consumer loans issued by others. Trust securities are placed once public offering is authorized by the CNV. Upon expiry of the placement period, once all trust securities have been placed on the market, the Bank recovers the disbursements made, plus the amount equal to the agreed-upon rate (“underwriting Price”). If after making the best efforts, such trust securities cannot be placed, the Bank (“Underwriter”) will retain the securities subject to underwriting. | |
As of the date of issuance of these financial statements, these prepayments were settled in full. | ||
(h) | San Isidro Trust | |
On June 4, 2001, Fideicomiso San Isidro was created for the purpose of securing loans that Banco Macro S.A. had previously granted to the trustor. The corpus asset was a real estate property. | ||
The certificates of participation were delivered to Banco Macro S.A. to settle a loan granted previously to República S.A. de Finanzas. | ||
In 2008, the Bank decided to develop a real estate urbanization project. | ||
On November 7, 2008, the Bank sold on credit all of the certificates of participation issued by the trust to an unrelated company. This loan was secured by such certificates. | ||
Additionally, the trust issued debt securities to finance its activity for a total amount of USD 19,500,000. The Bank acquired such debt securities, which are entitled to vote, taking the control of the main decisions of the Trust. | ||
According to the accounting information available as of the date of issuance of these consolidated financial statements, the corpus assets amounted to about 176,384. |
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(i) | Trust created by Decree 976-01 | |
On September 13, 2001, the Argentine Government (trustor) and Banco de la Nación Argentina (trustee) entered into a trust agreement called “Fideicomiso Creado por Decreto 976-01” (Trust created by Presidential Decree 976-01). | ||
The purpose of the Trust is the development of projects, works, services and maintenance on road and railway infrastructure in rural and semirural areas, among others. The trust revenues (corpus assets) arise, mainly, from collecting tax on gas oil, equivalent to 22% of the price per liter. Such tax was created by Law No. 26,028 and its effective term was subsequently extended until 2024 by Law 26,422. | ||
As of the date of issuance of these consolidated financial statements, the debt securities acquired by the Bank account for less than 2% of the trust issues. |
13.2. | Trusts created using financial assets transferred by the Bank | ||
The Bank transferred financial assets (loans) to trusts for the purpose of issuing and selling securities the collection of which is guaranteed by the cash flow resulting from such assets or group of assets. This way, the funds originally used to finance loans are recovered early, increasing the Bank’s lending capacity. | |||
The Bank does not hold securities issued by these trusts. | |||
As of December 31, 2009, and 2008, the trusts’ assets managed amount to 7,353 and 4,296, respectively. | |||
13.3. | Trusts as collateral for the loans granted by the Bank | ||
As it is common in the Argentine banking market, the Bank requires, in some cases, that the debtors present certain assets or entitlements to receiving assets in a trust as a guarantee for the loans granted. This way, the risk of losses is minimized and access to the security is guaranteed in case of the debtor ´s noncompliance. | |||
Trusts usually act as conduits to collect cash from the debtor’s flow of operations and send it to the bank for the payment of the debtor’s loans and thus ensure compliance with the obligations assumed by the trustor and guaranteed through the trust. | |||
Under this kind of trust, the Bank grants loans to trustors and creates a trust, where the trustor transfers an asset or right it owns to ensure compliance with the loan received. | |||
Additionally, other guarantee trusts manage specific assets, mainly real property. | |||
Provided there is no noncompliance or delays by debtor in the obligations assumed with the beneficiary, the Trustee shall not execute the guaranty and all excess amounts as to the value of the obligations are reimbursed by the Trustee to the debtor. | |||
As of December 31, 2009 and 2008, the trusts’ managed amount to 380,175 and 339,331, respectively. | |||
13.4. | Normal trust activities (The Bank acts as trustee) | ||
The Bank performs management duties in relation to the corpus assets according to the agreements and only performs trustee duties and has no other interests in the trust. | |||
In no case shall the Trustee be liable with its own assets or for any obligation deriving from the performance as trustee. Such obligations do not imply any type of indebtedness or commitment for the trustee and they will be fulfilled only through trust assets. In addition, the trustee will not encumber the corpus assets or dispose of them beyond the limits established in the related trust agreements. The fees earned by the Bank from its role as trustee are calculated according to the terms and conditions of the agreements. |
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The trusts usually manage funds derived from the activities performed by trustors. On the last day of each month, the trust’s assets are not material because they are transferred periodically by the trustee (the Bank) to the beneficiary according to the trust agreement. To such end, the Bank enters into administration trust agreements for the following main purposes: |
(a) | Managing the trust’s corpus assets to guarantee in favor of the beneficiary the existence of the resources required to finance and/or pay certain obligations, such as the payment of amortization installments regarding work or service certificates, and the payment of invoices and fees stipulated in the related agreements. | ||
(b) | Promoting the production development of the private economic sector at a provincial level. | ||
(c) | In connection with public work concession agreement granting road exploitation, management, keeping and maintenance. |
14. | COMPLIANCE WITH REQUIREMENTS TO ACT AS OVER-THE-COUNTER SECURITIES MARKET BROKER |
Under CNV Resolution 368/01, the Bank’s shareholder’s equity exceeds the minimum amount required. |
15. | RESTRICTION ON EARNINGS DISTRIBUTION |
a) | According to Central Bank provisions, 20% of income for the year should be appropriated to Legal Reserve. Consequently, the Shareholders’ Meeting held on April 6, 2010, decided to apply 150,386 out of unappropriated retained earnings to increase such legal reserve. | ||
b) | As established in the issuance conditions for the 1st series of Class 1 Corporate Bonds mentioned in note 10.b.1), and as established by Central Bank Communiqué “A” 4,576, the Shareholders’ Meeting held on April 6, 2010, decided to appropriate 55,527 out of unappropriated retained earnings” to set a special reserve for interest to be paid upon the maturities taking place in June and December 2010. | ||
c) | Through Communiqué “A” 4,589, as supplemented, the Central Bank established the procedure that should be followed by the financial institutions in the distribution of earnings. In this regard, the banks that will be distributing earnings will have to request express authorization from Central Bank and show compliance with the requirements established in the abovementioned communiqués regarding information for the month prior to the date on which the request is made. Consequently, to distribute earnings the following items must be deducted from unappropriated retained earnings as of year-end: |
i. | Capitalized amounts for differences resulting from compliance with court orders related to the dollarization of deposits of 48,998 (net of amortization -Banco Macro S.A. stand – alone basis-). | ||
ii. | The positive difference between the book value and the market value, present value or discounted cash flow, as the case may be, of government securities and guaranteed loans in portfolio amounting of 13,765, (Banco Macro S.A. stand – alone basis). |
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d) | According to Law No. 25,063, the dividends distributed in cash or in kind will be subject to a 35% income tax withholding as a single and final payment. Dividend payments are subject to such withholding if they exceed the sum of: (i) the accumulated taxable earnings accumulated as of the year-end immediately prior to the payment or distribution date net of the income tax paid for the fiscal years which income is being distributed and (ii) certain tax-exempt income (such as dividend payments from other corporations). This is applicable for tax years ended as from December 31, 1998. | ||
e) | On June 16, 2006, the Bank and Crédit Suisse First Boston International entered into a loan agreement for USD 50,000,000, maturing on January 21, 2008, at LIBOR plus 1.95%. Such agreement includes restrictions mainly related to the compliance with the payments established. In the event of noncompliance with the agreement, the Bank will be unable to distribute dividends either directly or indirectly through its subsidiaries. On January 18, 2008, an addendum was signed changing the expiration date to January 21, 2010, and establishing a nominal interest rate of 8.55% p.a. Finally, on January 21, 2010, the Bank cancelled the mentioned loan contract. |
Subsequently, on April 6, 2010, the Regular and Special General Shareholders’ Meeting of Banco Macro S.A. approved, among other issues, (i) the compensation paid to the Directors amounting to 31,154, (ii) the distribution of cash dividends for an amount of up 208,070 which was authorized by the Central Bank on May 28, 2010 and (iii) the write off of payments made on behalf of shareholders for their personal assets tax for an amount of 8,320. |
16. | TAX CLAIMS |
Federal Public Revenue Agency — Federal Tax Bureau (AFIP) has reviewed the tax returns filed by the Bank related to income tax and minimum presumed income tax in previous fiscal years. | ||
Additionally, provincial and municipal tax agencies have conducted reviews of other taxes (mainly taxes on gross income) for the previous fiscal year. | ||
Listed below are the most significant claims arising from these reviews: |
a) | AFIP objected the tax returns filed by the former Banco Bansud S.A. (for fiscal years ended from June 30, 1995, through June 30, 1999, and the six-month irregular period ended December 31, 1999) and by the former Banco Macro S.A. (for fiscal years ended 1998, 1999 and 2000) income tax returns of the former Banco Macro S.A. |
b) | AFIP objected to the tax returns of the Bank for fiscal years ended 2002, 2003 and 2004. | ||
The matter under discussion and on which the tax agency bases its position is the tax value of the amount pending receipt at that time for the compensation bonds resulting from the asymmetric translation into pesos (Law No. 25,561, Presidential Decree No. 214/02 and 216/02). | |||
On August 31, 2009, the Bank joined a settlement agreement created by Law No. 26,476, Title I regarding the claim brought by tax authorities. | |||
c) | The Buenos Aires City Tax Authorities (DGR CABA) attributed turnover tax differences to former Banco Macro S.A. for fiscal year ended 2002, in relation to the treatment of foreign exchange differences and the compensation bond. |
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On February 27, 2009, the precautionary measure was rejected and, therefore, an appeal was filed with Court of Appeals in and for the City of Buenos Aires. | |||
d) | The DGR CABA attributed turnover tax differences to former Banco Bansud S.A. for fiscal years ended 2002 and 2003, based mainly on the adjustments made in objections regarding foreign exchange differences and the compensation bond. | ||
In October 2009, the Bank partially joined a settlement agreement under General Resolution 1489/09 of a DGR CABA. | |||
e) | The Buenos Aires Province Tax Authorities (DGR ARBA) attributed a turnover tax difference to Banco Macro S.A. related to mechanisms of distribution of gross income to the different provinces in relation to period 2002 and 2006. On May 5, and October 14, 2008, the Bank filed its defense brief which was dismissed. The Bank filed appeals with the Province of Buenos Aires Tax Appeal Court. |
Additionally, there are other appeals which are not relevant with Tax Court. | ||
The Bank’s Management believes there are no additional significant effects to those already recognized in the books that may result from the final outcome of such claims. |
17. | ACCOUNTS IDENTIFYING COMPLIANCE OF THE MINIMUM CASH REQUIREMENT |
The following table shows the items computed by Banco Macro S.A. (stand-alone basis) and Banco del Tucumán S.A., under Central Bank rules, to constitute the minimum cash requirement for December 2009 are listed below, indicating the accounts balances. |
Banco Macro S.A. | ||||||||
(stand-alone | Banco del | |||||||
Item | basis) | Tucumán S.A. | ||||||
Cash | ||||||||
Cash on hand | 1,110,141 | 194,550 | ||||||
Amounts in Central Bank accounts | 2,693,319 | 216,701 | ||||||
Other receivables from financial intermediation | ||||||||
Special guarantee accounts with the Central Bank | 217,420 | 25,006 | ||||||
Total | 4,020,880 | 436,257 | ||||||
18. | RISK MANAGEMENT POLICIES |
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1. | Business Plan. This is the starting point to determine the cash needs of the current year. | ||
2. | Liquidity Test. This is used to define the amount of funding required in a predetermined series of future dates assuming normal market circumstances and without there being any significant changes in the business. | ||
3. | Stress Tests. Used to quantify the impact of individual or systemic illiquidity scenarios. | ||
4. | Mismatch control. The Committee defines the amount of the accumulated mismatch that is acceptable for each one of the tranches or gaps in the liquidity test, both in the normal and stress scenarios. | ||
5. | Assets and Liabilities Assumptions. In the process of constructing the liquidity mismatches, whether in normal market or stress situations, assumptions used include stability, diversification, and historical renewal percentages of assets and liabilities. |
19. | BALANCES IN FOREIGN CURRENCY |
As of December 31, | ||||||||
2009 | 2008 | |||||||
ASSETS | ||||||||
Cash | 2,634,999 | 1,289,351 | ||||||
Government and private securities | 1,596,822 | 510,061 | ||||||
Loans | 1,899,185 | 2,128,481 | ||||||
Other receivables from financial intermediation | 1,264,164 | 413,169 | ||||||
Assets under Financial Lease | 72,334 | 69,188 | ||||||
Investments in other companies | 550 | 500 | ||||||
Other receivables | 30,036 | 57,613 | ||||||
Items pending allocation | 257 | 803 | ||||||
Total | 7,498,347 | 4,469,166 | ||||||
LIABILITIES | ||||||||
Deposits | 3,895,939 | 2,521,198 | ||||||
Other liabilities from financial intermediation | 1,892,293 | 901,277 | ||||||
Other liabilities | 5,546 | 8,360 | ||||||
Subordinated Corporate Bonds | 571,510 | 519,879 | ||||||
Items pending allocation | 2 | 3 | ||||||
Total | 6,365,290 | 3,950,717 | ||||||
20. | INTEREST-BEARING DEPOSITS WITH OTHER BANKS |
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21. | GOVERNMENT AND PRIVATE SECURITIES |
As of December 31, | ||||||||
2009 | 2008 | |||||||
GOVERNMENT SECURITIES | ||||||||
Holdings in Special Investment Accounts | ||||||||
In pesos: | ||||||||
Federal government bonds at 2% – maturity 2014 | 222,169 | 3,582 | ||||||
Federal government bonds in pesos at Badlar + 2.75% – maturity 2014 | 191,384 | — | ||||||
Consolidation bonds of social security payable in pesos at 2% – maturity 2010 and 2014 | — | 83,847 | ||||||
Secured bonds Decree 1,579/02 at 2% – maturity 2018 | 178,979 | 23,769 | ||||||
Discount bonds denominated in pesos at 5.83% – maturity 2033 | 18,207 | 22,201 | ||||||
Consolidation bonds in pesos at 2% – Sixth series – maturity 2024 | 5,350 | 4,122 | ||||||
Subtotal holdings in Special Investment Accounts – In pesos | 616,089 | 137,521 | ||||||
In foreign currency: | ||||||||
Argentine government bonds in USD at 7% – maturity 2015 | 38,881 | 49,590 | ||||||
Federal government bonds in USD at Libor – maturity 2012 and 2013 | 2,346 | 236,110 | ||||||
Par bonds denominated in USD at variable rate – maturity 2038 (governed by Argentine legislation) | 1,594 | 1,450 | ||||||
Par bonds denominated in USD at variable rate – maturity 2038 (governed by New York State legislation) | 461 | 382 | ||||||
Argentine government bonds in USD at 7% – maturity 2017 | — | 23,252 | ||||||
Subtotal holdings in Special Investment Accounts – In foreign currency | 43,282 | 310,784 | ||||||
Subtotal holding in Special Investment Accounts | 659,371 | 448,305 | ||||||
Holdings for trading or financial intermediation | ||||||||
In pesos: | ||||||||
Discount bonds denominated in pesos at 5.83% – maturity 2033 | 9,752 | 209,277 | ||||||
Consolidation bonds of social security payables in pesos at 2% – maturity 2014 | 7,525 | 1,324 | ||||||
Federal government bonds at 2% – maturity 2014 | 6,579 | — | ||||||
Federal government bonds in pesos at Badlar + 2.75% – maturity 2014 | 1,464 | — | ||||||
Secured bonds Decree 1,579/02 at 2% – maturity 2018 | 1,433 | 652 | ||||||
Federal government bonds in pesos at Badlar + 300 Pbs – maturity 2015 | 1,064 | — | ||||||
Consolidation bonds at 2% – maturity 2016 | 599 | 1,523 | ||||||
Others | 1,501 | 9,595 | ||||||
Subtotal holdings for trading or financial intermediation – In pesos | 29,917 | 222,371 | ||||||
In foreign currency: | ||||||||
Argentine government bonds in USD at 7% – maturity 2017 | 1,046,220 | 1,633 | ||||||
Treasury Bills in USD – maturity 2010 | 379,666 | — | ||||||
Federal government bonds in USD at Libor – maturity 2012 | 52,874 | 96,415 | ||||||
Argentine government bonds in USD at 7% – maturity 2015 | 1,544 | 9,627 | ||||||
Others | 850 | 14,421 | ||||||
Subtotal holding for trading or financial intermediation – In foreign currency | 1,481,154 | 122,096 | ||||||
Subtotal holding for trading or financial intermediation | 1,511,071 | 344,467 | ||||||
Unlisted government securities | ||||||||
In pesos: | ||||||||
Argentine government bonds in pesos at Badlar +3.50% – maturity 2013 | 44,541 | 51,864 | ||||||
Federal government bonds at variable rate – maturity 2013 | 9,738 | 10,385 | ||||||
Province of Tucuman bonds at 2% – maturity 2018 | 1,984 | 2,290 | ||||||
Consolidation bonds at 2% – maturity 2010 | 199 | — | ||||||
Others | 7 | — | ||||||
Subtotal unlisted government securities – In pesos | 56,469 | 64,539 | ||||||
In foreign currency: | ||||||||
Province of Córdoba debt securities in USD at 12% – maturity 2017 | 19,160 | — | ||||||
Province of Tucumán bonds in USD at Libor – maturity 2015 | 3,820 | 5,419 | ||||||
Subtotal unlisted government securities – In foreign currency | 22,980 | 5,419 | ||||||
Subtotal unlisted government securities | 79,449 | 69,958 | ||||||
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As of December 31, | ||||||||
2009 | 2008 | |||||||
GOVERNMENT SECURITIES (contd.) | ||||||||
Instruments issued by the Central Bank of Argentina | ||||||||
In pesos: | ||||||||
Listed Central Bank bills (LEBAC) | 196,021 | — | ||||||
Listed Central Bank notes (NOBAC) | 68,464 | 772,496 | ||||||
Unlisted Central Bank bills (LEBAC) | 2,246,840 | — | ||||||
Unlisted Central Bank notes (NOBAC) | 2,124,444 | 2,640,452 | ||||||
Unlisted Central Bank bills (LEBAC) – under repo transactions | 14,652 | 425,963 | ||||||
Subtotal instruments issued by Central Bank | 4,650,421 | 3,838,911 | ||||||
Total government securities | 6,900,312 | 4,701,641 | ||||||
PRIVATE SECURITIES | ||||||||
Investments in listed private securities | ||||||||
In pesos: | ||||||||
Mutual funds | 31,469 | 5,544 | ||||||
Shares | — | 378 | ||||||
Others | 1 | 1 | ||||||
Subtotal listed private securities – In pesos | 31,470 | 5,923 | ||||||
In foreign currency: | ||||||||
Corporate bonds | 43,047 | 63,629 | ||||||
Mutual funds | 6,359 | 8,133 | ||||||
Subtotal listed private securities – In foreign currency | 49,406 | 71,762 | ||||||
Total private securities | 80,876 | 77,685 | ||||||
Total government and private securities, before allowances | 6,981,188 | 4,779,326 | ||||||
Allowances | (44 | ) | (27 | ) | ||||
Total government and private securities | 6,981,144 | 4,779,299 | ||||||
Maturing | ||||||||||||||||||||
After 1 year | After 5 years | |||||||||||||||||||
Within 1 | but within 5 | but within 10 | After 10 | |||||||||||||||||
year | years | years | years | Total | ||||||||||||||||
Book value | ||||||||||||||||||||
GOVERNMENT SECURITIES | ||||||||||||||||||||
Holdings in Special Investment Accounts | ||||||||||||||||||||
In pesos: | 15,847 | 489,926 | 89,823 | 20,493 | 616,089 | |||||||||||||||
Federal government bonds at 2% – maturity 2014 | — | 222,169 | — | — | 222,169 | |||||||||||||||
Federal government bonds in pesos at Badlar + 2.75% – maturity 2014 | — | 191,384 | — | — | 191,384 | |||||||||||||||
Secured bonds Decree 1,579/02 at 2% – maturity 2018 | 15,847 | 75,973 | 87,159 | — | 178,979 | |||||||||||||||
Discount bonds denominated in pesos at 5.83% – maturity 2033 | — | — | — | 18,207 | 18,207 | |||||||||||||||
Consolidation bonds in pesos at 2% – Sixth series – maturity 2024 | — | 400 | 2,664 | 2,286 | 5,350 | |||||||||||||||
Holdings in Special Investment Accounts | ||||||||||||||||||||
In foreign currency | 735 | 1,611 | 38,881 | 2,055 | 43,282 | |||||||||||||||
Argentine government bonds in USD at 7% – maturity 2015 | — | — | 38,881 | — | 38,881 | |||||||||||||||
Federal government bonds in USD at Libor – maturity 2012 and 2013 | 735 | 1,611 | — | — | 2,346 | |||||||||||||||
Par bonds denominated in USD at variable rate – maturity 2038 (governed by Argentine legislation) | — | — | — | 1,594 | 1,594 | |||||||||||||||
Par bonds denominated in USD at variable rate – maturity 2038 (governed by New York State legislation) | — | — | — | 461 | 461 |
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Maturing | ||||||||||||||||||||
After 1 year | After 5 years | |||||||||||||||||||
Within 1 | but within 5 | but within 10 | After 10 | |||||||||||||||||
year | years | years | years | Total | ||||||||||||||||
Book value | ||||||||||||||||||||
GOVERNMENT SECURITIES (contd.) | ||||||||||||||||||||
Holdings for trading or financial intermediation | ||||||||||||||||||||
In pesos: | 2,225 | 15,803 | 1,344 | 10,545 | 29,917 | |||||||||||||||
Discount bonds in pesos at 5.83% – maturity 2033 | — | — | — | 9,752 | 9,752 | |||||||||||||||
Consolidation bonds of social security payables in pesos at 2% – maturity 2014 | 1,701 | 5,824 | — | — | 7,525 | |||||||||||||||
Federal government bonds at 2% – maturity 2014 | — | 6,579 | — | — | 6,579 | |||||||||||||||
Federal government bonds in pesos at Badlar + 2.75% – maturity 2014 | — | 1,464 | — | — | 1,464 | |||||||||||||||
Secured bonds Decree 1,579/02 at 2% – maturity 2018 | 127 | 608 | 698 | — | 1,433 | |||||||||||||||
Federal government bonds in pesos at Badlar + 300 Pbs – Maturity 2015 | — | 709 | 355 | — | 1,064 | |||||||||||||||
Consolidation bonds at 2% – maturity 2016 | 100 | 399 | 100 | — | 599 | |||||||||||||||
Others | 297 | 220 | 191 | 793 | 1,501 | |||||||||||||||
Holdings for trading or financial intermediation | ||||||||||||||||||||
In foreign currency: | 397,377 | 35,888 | 1,047,764 | 125 | 1,481,154 | |||||||||||||||
Argentine government bonds in USD at 7% – maturity 2017 (1) | — | — | 1,046,220 | — | 1,046,220 | |||||||||||||||
Treasures Bills in USD — maturity 2010 | 379,666 | — | — | — | 379,666 | |||||||||||||||
Federal government bonds in USD at Libor – maturity 2012 | 17,625 | 35,249 | — | — | 52,874 | |||||||||||||||
Argentine government bonds in USD at 7% – maturity 2015 | — | — | 1,544 | — | 1,544 | |||||||||||||||
Others | 86 | 639 | — | 125 | 850 | |||||||||||||||
Unlisted government securities | ||||||||||||||||||||
In pesos: | 2,810 | 52,692 | 967 | — | 56,469 | |||||||||||||||
Argentine government bonds in pesos at Badlar + 3.50% – maturity 2013 | — | 44,541 | — | — | 44,541 | |||||||||||||||
Federal government bonds at variable rate – maturity 2013 | 2,434 | 7,304 | — | — | 9,738 | |||||||||||||||
Province of Tucuman bonds at 2% – maturity 2018 | 176 | 842 | 966 | — | 1,984 | |||||||||||||||
Consolidation bonds at 2% – maturity 2010 | 199 | — | — | — | 199 | |||||||||||||||
Others | 1 | 5 | 1 | — | 7 | |||||||||||||||
Unlisted government securities | ||||||||||||||||||||
In foreign currency: | 3,032 | 12,126 | 7,822 | — | 22,980 | |||||||||||||||
Province of Córdoba debt securities in USD at 12% – maturity 2017 | 2,395 | 9,580 | 7,185 | — | 19,160 | |||||||||||||||
Province of Tucuman bonds at 2% – maturity 2015 | 637 | 2,546 | 637 | — | 3,820 | |||||||||||||||
Instruments issued by the Central Bank of Argentina | 4,635,769 | 14,652 | — | — | 4,650,421 | |||||||||||||||
Listed Central Bank bills (LEBAC) | 196,021 | — | — | — | 196,021 | |||||||||||||||
Listed Central Bank notes (NOBAC) | 68,464 | — | — | — | 68,464 | |||||||||||||||
Unlisted Central Bank bills (LEBAC) | 2,246,840 | — | — | — | 2,246,840 | |||||||||||||||
Unlisted Central Bank notes (NOBAC) | 2,124,444 | — | — | — | 2,124,444 | |||||||||||||||
Unlisted Central Bank bills (LEBAC) – under repo transactions | — | 14,652 | — | — | 14,652 | |||||||||||||||
Total government securities | 5,057,795 | 622,698 | 1,186,601 | 33,218 | 6,900,312 | |||||||||||||||
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Maturing | ||||||||||||||||||||
After 1 year | After 5 years | |||||||||||||||||||
Within 1 | but within 5 | but within 10 | After 10 | |||||||||||||||||
year | years | years | years | Total | ||||||||||||||||
Book value | ||||||||||||||||||||
PRIVATE SECURITIES | ||||||||||||||||||||
Investments in listed private securities | ||||||||||||||||||||
In Pesos: | 31,470 | — | — | — | 31,470 | |||||||||||||||
Mutual Funds | 31,469 | — | — | — | 31,469 | |||||||||||||||
Others | 1 | — | — | — | 1 | |||||||||||||||
Investments in listed private securities | ||||||||||||||||||||
In foreign currency | 40,811 | 1,240 | 7,355 | — | 49,406 | |||||||||||||||
Corporate bonds | 34,452 | 1,240 | 7,355 | — | 43,047 | |||||||||||||||
Mutual Funds | 6,359 | — | — | — | 6,359 | |||||||||||||||
Total private securities | 72,281 | 1,240 | 7,355 | — | 80,876 | |||||||||||||||
Total government and private securities, before allowances | 5,130,076 | 623,938 | 1,193,956 | 33,218 | 6,981,188 | |||||||||||||||
Allowances | (44 | ) | ||||||||||||||||||
Total government and private securities | 6,981,144 | |||||||||||||||||||
(1) | Correspond to holdings received by repo transactions with the Central Bank with a maturity on January 4, 2010. |
22. | LOANS |
Description of certain categories of loans in the accompanying Balance Sheets include: |
a. | Non-financial government sector: loans to the government sector, excluding government owned financial institutions. | ||
b. | Financial sector: mainly, refers to short-term loans to financial institutions. | ||
c. | Non financial private sector and foreign residents: loans given to the private sector (excluding financial institutions) and residents outside Argentina. |
As of December 31, | ||||||||
2009 | 2008 | |||||||
Non-financial government sector | 206,484 | 744,507 | ||||||
Financial sector | 90,916 | 80,423 | ||||||
Non-financial private sector and foreign residents | ||||||||
Commercial | ||||||||
- With Senior “A” guarantees | 226,381 | 134,942 | ||||||
- With Senior “B” guarantees | 570,170 | 466,211 | ||||||
- Without Senior guarantees | 3,860,755 | 4,170,443 | ||||||
Consumer | ||||||||
- With Senior “A” guarantees | 27,932 | 20,213 | ||||||
- With Senior “B” guarantees | 669,081 | 718,608 | ||||||
- Without Senior guarantees | 5,893,133 | 5,382,959 | ||||||
Less: Allowance | (448,045 | ) | (438,348 | ) | ||||
Total loans, net of allowance | 11,096,807 | 11,279,958 | ||||||
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2009 | 2008 | |||||||
Argentina | 11,523,838 | 11,688,928 | ||||||
United States of America | 10,875 | — | ||||||
England | 7,500 | — | ||||||
Australia | 2,095 | 3,294 | ||||||
Venezuela | 388 | — | ||||||
Spain | 127 | — | ||||||
Chile | 11 | — | ||||||
Uruguay | 8 | 12,994 | ||||||
France | 8 | 5 | ||||||
Paraguay | 2 | — | ||||||
Bermuda | — | 10,048 | ||||||
Canada | — | 3,027 | ||||||
Peru | — | 10 | ||||||
Less: Allowance | (448,045 | ) | (438,348 | ) | ||||
Total loans, net of allowances | 11,096,807 | 11,279,958 | ||||||
Economic Activity | 2009 | 2008 | ||||||
Retail loans | 4,403,933 | 4,023,725 | ||||||
Agricultural livestock- Forestry-Fishing- Mining — Hunting | 1,910,164 | 1,538,027 | ||||||
Construction | 1,112,702 | 563,526 | ||||||
Other services | 858,936 | 852,658 | ||||||
Retail and consumer products | 747,897 | 831,741 | ||||||
Foodstuff and beverages | 637,814 | 521,849 | ||||||
Governmental services | 258,784 | 886,749 | ||||||
Financial Services | 290,331 | 289,450 | ||||||
Real estate, business and leases | 236,555 | 267,604 | ||||||
Transportation, storage and communications | 190,796 | 263,999 | ||||||
Manufacturing and wholesale | 140,620 | 283,555 | ||||||
Chemicals | 129,145 | 608,157 | ||||||
Electricity, oil, water | 75,095 | 170,950 | ||||||
Hotels and restaurants | 29,949 | 32,325 | ||||||
Others | 522,131 | 583,991 | ||||||
Total loans | 11,544,852 | 11,718,306 | ||||||
Less: Allowance | (448,045 | ) | (438,348 | ) | ||||
Total loans, net of Allowance | 11,096,807 | 11,279,958 | ||||||
23. | ALLOWANCES FOR LOAN LOSSES |
The activity in the allowance for loan losses for the fiscal years presented is as follows: |
As of December 31, | ||||||||||||
2009 | 2008 | 2007 | ||||||||||
Balance at the beginning of the fiscal year | 438,348 | 220,422 | 208,581 | |||||||||
Provision for loan losses (a)(b) | 187,648 | 314,532 | 93,498 | |||||||||
Charge Offs | (175,355 | ) | (76,246 | ) | (38,199 | ) | ||||||
Reversals (b) | (2,596 | ) | (20,360 | ) | (43,458 | ) | ||||||
Balance at the end of the fiscal year(c) | 448,045 | 438,348 | 220,422 | |||||||||
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(a) | As of December 31, 2009, the amount of “Provision for loan losses” disclosed in the Statements of Income, includes above amounts and the provision for “Other receivables for financial intermediation” and “Assets subject to financial lease” (see note 27.), minus 5,524 mainly related to Foreign currency exchange. | |
(b) | As of December 31, 2009 the amount of “Provisions for loan loss, net” disclosed in note 31., under US SEC Regulation S-X, includes above amounts and provision and reversals of “Assets subject to financial lease” disclosed in note 27. minus 28,915 mainly related to Recovered loans and Foreign currency exchange. | |
(c) | As of December 31, 2009, as disclosed in note 31, under SEC requirements, the amount of allowance for loan losses includes the allowance for assets subject to financial lease (see note 27.). |
24. | OTHER RECEIVABLES FROM FINANCIAL INTERMEDIATION |
The breakdown of other receivables from financial intermediation by guarantee type is as follows: |
As of December 31, | ||||||||
Description | 2009 | 2008 | ||||||
With preferred guarantees | 1,056,919 | — | ||||||
Without preferred guarantees | 1,554,953 | 1,682,653 | ||||||
Allowances | (231,219 | ) | (228,588 | ) | ||||
2,380,653 | 1,454,065 | |||||||
As of December 31, | ||||||||
Description | 2009 | 2008 | ||||||
Repurchased corporate bonds | — | 29,105 | ||||||
Corporate bonds — Unlisted (1) | 80,746 | 53,389 | ||||||
Certificates of participation in financial trusts — Unlisted (1) | 390,164 | 337,809 | ||||||
Debt securities in financial trusts — Unlisted | 206,787 | 227,147 | ||||||
Total investments in unlisted private securities | 677,697 | 647,450 | ||||||
(1) | As of December 31, 2009 and 2008, the Bank booked allowances for impairment in value amounting to 225,210 and 228,530, respectively (see also note 27). |
After 1 | After 5 | |||||||||||||||||||||||
year but | years but | |||||||||||||||||||||||
Within 1 | within 5 | within 10 | After 10 | Without | ||||||||||||||||||||
year | years | years | years | due date | Total | |||||||||||||||||||
Corporate bonds —Unlisted | 48,812 | 31,744 | — | — | 190 | 80,746 | ||||||||||||||||||
Certificates of participation in financial trusts —Unlisted | 2,243 | 76,150 | — | 10,591 | 301,180 | (1) | 390,164 | |||||||||||||||||
Debt securities in financial trusts —Unlisted | 175,217 | 20,323 | 11,247 | — | — | 206,787 | ||||||||||||||||||
Total investments in unlisted private securities | 226,272 | 128,217 | 11,247 | 10,591 | 301,370 | 677,697 | ||||||||||||||||||
(1) | As of December 31, 2009 the Bank booked allowances for impairment in value amounting to 224,193. |
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As of December 31, | ||||||||
Description | 2009 | 2008 | ||||||
Amounts receivable from spot and forward sales pending settlement | ||||||||
Receivable from spot sales of government and private securities pending settlement | 21,651 | 60,858 | ||||||
Receivables from repurchase agreements of government securities | 14,657 | 426,196 | ||||||
Receivables from forward sales of government securities | — | 3,214 | ||||||
Receivables from spot sales of foreign currency settlement | 734 | 4,469 | ||||||
37,042 | 494,737 | |||||||
Securities and foreign currency receivable from spot and forward purchases pending settlement | ||||||||
Forward purchases of securities under repurchase agreements | 521,159 | 5,626 | ||||||
Spot purchases of government and private securities pending settlement | 1,608 | 35,228 | ||||||
Spot purchases of foreign currency pending settlement | 734 | 1,640 | ||||||
Forward purchases of government securities | — | 2 | ||||||
Other spot purchases | 13,059 | 11,786 | ||||||
536,560 | 54,282 | |||||||
Amounts payable for spot and forward purchases pending settlement | ||||||||
Payables for forward purchases of securities under repurchase agreements | 468,535 | — | ||||||
Payables for spot purchases of government securities pending settlement | 14,552 | 42,372 | ||||||
Payables under repo transactions | 8,362 | 24,495 | ||||||
Payables for spot purchases of foreign currency pending settlement and forward purchases of foreign currency | 734 | 1,632 | ||||||
492,183 | 68,499 | |||||||
Securities and foreign currency to be delivered under spot and forward sales pending settlement | ||||||||
Forward sales of government securities under repurchase agreements | 1,060,887 | 629,973 | ||||||
Spot sales of government and private securities pending settlement | 14,430 | 43,307 | ||||||
Forward sales of foreign currency pending settlement | 730 | 4,463 | ||||||
Forward sales of government securities | — | 1,752 | ||||||
1,076,047 | 679,495 | |||||||
End-of-year fair value | ||||||||
Description | 2009 | 2008 | ||||||
Assets | 535,160 | 53,571 | ||||||
Liabilities | 1,028,014 | 681,295 |
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25. | BANK PREMISES AND EQUIPMENT AND OTHER ASSETS |
25.1 | Premises and Equipment | ||
The major categories of the Bank’s premises and equipment, and related accumulated depreciation are presented in the following table: |
As of December, 31 | ||||||||||||
Estimated | ||||||||||||
useful life | ||||||||||||
Description | (years) | 2009 | 2008 | |||||||||
Buildings | 50 | 396,024 | 370,522 | |||||||||
Furniture and facilities | 10 | 98,332 | 88,308 | |||||||||
Machinery and equipment | 5 | 366,355 | 362,325 | |||||||||
Vehicles | 5 | 34,192 | 33,976 | |||||||||
Other | — | 1,552 | 2,303 | |||||||||
Accumulated depreciation | (462,830 | ) | (426,592 | ) | ||||||||
Total | 433,625 | 430,842 | ||||||||||
Depreciation expense was 53,993, 50,543 and 42,723 as of December 31, 2009, 2008 and 2007, respectively. | |||
25.2 | Other assets | ||
Other assets consisted of the following as of December 31, 2009 and 2008: |
As of December, 31 | ||||||||||||
Estimated | ||||||||||||
useful life | ||||||||||||
Description | (years) | 2009 | 2008 | |||||||||
Works in progress | — | 15,531 | 22,801 | |||||||||
Works of art | — | 1,213 | 1,206 | |||||||||
Prepayments for the purchase of assets | — | 1,335 | 365 | |||||||||
Foreclosed assets | 50 | 19,498 | 25,632 | |||||||||
Leased buildings | 50 | 4,543 | 6,765 | |||||||||
Stationery and office supplies | — | 3,347 | 5,346 | |||||||||
Other assets (1) | 50 | 82,141 | 87,870 | |||||||||
Accumulated depreciation | (13,266 | ) | (12,628 | ) | ||||||||
Total | 114,342 | 137,357 | ||||||||||
(1) | Mainly includes buildings not affected by banking activities. |
Depreciation expense was 1,583, 1,313 and 1,598 at December 31, 2009, 2008 and 2007, respectively. | |||
25.3 | Operating Leases | ||
As of December 31, 2009, the Bank’s branch network includes certain branches that were located in properties leased to the Bank (some of which are renewable for periods between 2 and 10 years). |
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Fiscal year end | Amounts | |||
2010 | 20,100 | |||
2011 | 12,958 | |||
2012 | 6,233 | |||
2013 | 3,271 | |||
2014 | 2,121 | |||
2015 and after | 4,017 | |||
Total | 48,700 | |||
26. | INTANGIBLE ASSETS |
26.1. | Goodwill: | ||
As of December 31, 2009 and 2008 goodwill breakdown is as follows: |
As of December 31, | ||||||||||||
Estimated | ||||||||||||
useful life | ||||||||||||
Description | (years) | 2009 | 2008 | |||||||||
Goodwill for the purchase of Banco del Tucumán S.A., net of accumulated amortization of 6,676 as of December 31, 2009 (a) | 10 | 11,567 | 13,395 | |||||||||
Goodwill for the purchase of Nuevo Banco Bisel S.A., net of accumulated amortization of 22,564 as of December 31, 2009 (b) | 10 | 43,478 | 50,082 | |||||||||
Total | 55,045 | 63,477 | ||||||||||
Amortization expense on goodwill was 8,432, 8,439 and 9,250 as of December 31, 2009, 2008 and 2007, respectively. | ||
(a) | As mentioned in note 3.6., on May 5, 2006, Banco Macro acquired 75% of the capital stock of Banco del Tucumán in the amount of 45,961. The assets transferred amounted to 700,612 and the liabilities assumed amounted to 660,547. | |
Additionally, from September through December 2006, Banco Macro S.A. acquired 4.84% of the capital stock of Banco del Tucumán S.A. | ||
Finally, on November 28, 2006, the General Regular and Special Shareholder’s Meeting of Banco del Tucumán S.A. approved a capital increase of 21,980, establishing an additional paid-in capital of 26,171. During January 2007, Banco Macro S.A. subscribed the total increase, thus increasing its overall interest in Banco del Tucumán S.A. to 89.93%. | ||
Under Central Bank rules, this transaction resulted in Banco Macro’s positive goodwill amounting to 18,242, which is amortized in ten years and no impairment is required. | ||
(b) | On August 11, 2006, the Bank acquired 92.73% of the capital stock of Nuevo Banco Bisel in the amount of 19,509. The assets transferred amounted to 1,824,644 and the liabilities assumed amounted to 1,804,534. | |
Under Central Bank rules, as a result of the acquisition, the Bank booked a positive goodwill amounting to 66,042, which is amortized in ten years and no impairment is required. See also note 3.7. |
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26.2. | Organization and development costs: | ||
As of December 31, 2009 and 2008, the organization and development costs breakdown is as follows: |
As of December 31, | ||||||||||||
Estimated | ||||||||||||
useful life | ||||||||||||
Description | (years) | 2009 | 2008 | |||||||||
Differences due to courts orders — deposits dollarizations | 5 | 50,532 | 40,657 | |||||||||
Cost from information technology projects | 5 | 78,158 | 74,631 | |||||||||
Organizational cost | 5 | 8,001 | 8,308 | |||||||||
Other capitalized cost | 5 | 18,838 | 11,473 | |||||||||
Total | 155,529 | 135,069 | ||||||||||
Fiscal year ended December 31, | ||||||||||||
2009 | 2008 | 2007 | ||||||||||
Balance at the beginning of the fiscal year | 198,546 | 199,963 | 164,047 | |||||||||
Additions | 74,867 | 62,096 | 92,368 | |||||||||
Decreases | (457 | ) | (8 | ) | — | |||||||
Amortization expense | (62,382 | ) | (63,505 | ) | (56,452 | ) | ||||||
Balance at the end of the fiscal year | 210,574 | 198,546 | 199,963 | |||||||||
27. | OTHER ALLOWANCES AND PROVISIONS |
The activity of the following allowances deducted from assets or included in liabilities in accordance with Central Bank rules are as follows: | ||
Allowances — Government and private securities | ||
Recorded to cover possible impairment risk arising out of government securities. |
As of December 31, | ||||||||||||
2009 | 2008 | 2007 | ||||||||||
Balance at the beginning of the fiscal year | 27 | 27 | 29 | |||||||||
Provision for government and private securities | 28 | — | — | |||||||||
Reversals | (11 | ) | — | (2 | ) | |||||||
Balance at the end of the fiscal year | 44 | 27 | 27 | |||||||||
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As of December 31, | ||||||||||||
2009 | 2008 | 2007 | ||||||||||
Balance at the beginning of the fiscal year | 228,588 | 206,939 | 178,319 | |||||||||
Provision for other receivables for financial intermediation losses | 4,202 | 24,099 | 38,583 | |||||||||
Charge off | (1,503 | ) | (761 | ) | (5,902 | ) | ||||||
Reversals | (68 | ) | (1,689 | ) | (4,061 | ) | ||||||
Balance at the end of the fiscal year | 231,219 | 228,588 | 206,939 | |||||||||
As of December 31, | ||||||||||||
2009 | 2008 | 2007 | ||||||||||
Balance at the beginning of the fiscal year | 5,391 | 4,898 | 3,489 | |||||||||
Provision for assets subject to financial lease | 138 | 614 | 1,557 | |||||||||
Charge off | (2 | ) | — | — | ||||||||
Reversals | (1,878 | ) | (121 | ) | (148 | ) | ||||||
Balance at the end of the fiscal year(1) | 3,649 | 5,391 | 4,898 | |||||||||
(1) | Under U.S. SEC requirements, as disclosed in note 31, they were included in “Assets — Allowance for loans losses”. |
As of December 31, | ||||||||||||
2009 | 2008 | 2007 | ||||||||||
Balance at the beginning of the fiscal year | 247 | 697 | 1,172 | |||||||||
Provision for investment in other companies losses | 1,266 | 45 | 85 | |||||||||
Charge off | — | (487 | ) | (11 | ) | |||||||
Reversals | (16 | ) | (8 | ) | (549 | ) | ||||||
Balance at the end of the fiscal year | 1,497 | 247 | 697 | |||||||||
As of December 31, | ||||||||||||
2009 | 2008 | 2007 | ||||||||||
Balance at the beginning of the fiscal year | 15,838 | 27,034 | 36,153 | |||||||||
Provision for other receivables losses | 2,477 | 7,332 | 1,936 | |||||||||
Charge off | (2,421 | ) | (18,011 | ) | (3,959 | ) | ||||||
Reversals | (1,914 | ) | (517 | ) | (7,096 | ) | ||||||
Balance at the end of the fiscal year | 13,980 | 15,838 | 27,034 | |||||||||
Total of allowances | 250,389 | 250,091 | 239,595 | |||||||||
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As of December 31, | ||||||||||||
2009 | 2008 | 2007 | ||||||||||
Balance at the beginning of the fiscal year | 1,523 | 1,660 | 1,674 | |||||||||
Provision for granted guarantees losses | 24 | 40 | 55 | |||||||||
Reversals | (581 | ) | (177 | ) | (69 | ) | ||||||
Balance at the end of the fiscal year | 966 | 1,523 | 1,660 | |||||||||
As of December 31, | ||||||||||||
2009 | 2008 | 2007 | ||||||||||
Balance at the beginning of the fiscal year | 62,765 | 78,044 | 75,085 | |||||||||
Provision for other contingent losses | 17,114 | 28,792 | 23,638 | |||||||||
Charge off | (10,963 | ) | (22,686 | ) | (18,728 | ) | ||||||
Reversals | (2,069 | ) | (21,385 | ) | (1,951 | ) | ||||||
Balance at the end of the fiscal year | 66,847 | 62,765 | 78,044 | |||||||||
As of December 31, | ||||||||||||
2009 | 2008 | 2007 | ||||||||||
Balance at the beginning of the fiscal year | 18,233 | 21,146 | — | |||||||||
Provision from court deposits dollarization | 1,746 | 1,864 | 21,678 | |||||||||
Charge off | — | (4,777 | ) | (532 | ) | |||||||
Balance at the end of the fiscal year | 19,979 | 18,233 | 21,146 | |||||||||
Total of provisions | 88,275 | 83,004 | 101,333 | |||||||||
28. | DEPOSITS AND OTHER LIABILITIES FROM FINANCIAL INTERMEDIATION |
28.1 | Deposits | ||
The aggregate amount of time deposits and investment accounts exceeding Ps.100 (thousands) or more as of December 31, 2009 and 2008 is 6,964,798 and 6,335,840, respectively. |
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28.2 | Central Bank of Argentina | ||
The Bank borrowed funds under various credit facilities from the Central Bank for specific purposes, as follows: |
As of December 31, 2009 | As of December 31, 2008 | |||||||||||||||||||||||
Interest and | Interest and | |||||||||||||||||||||||
CER | CER | |||||||||||||||||||||||
Principal | adjustments | Rate | Principal | adjustments | Rate | |||||||||||||||||||
Short–term liabilities | 1,363 | — | — | 35,746 | 43,193 | 1.95 | % | |||||||||||||||||
Long–term liabilities | 518 | 16 | 0.08 | % | 101,516 | 122,305 | 2.00 | % | ||||||||||||||||
Total (1) | 1,881 | 16 | 137,262 | 165,498 | ||||||||||||||||||||
(1) | As mentioned in note 2, during January and February 2009, as set forth by Central Bank Resolution No. 06/2009 and 216/2009, the Bank prepaid the payable amounts resulting from loans received to acquire Argentine Government bonds intended for the depositors of former Nuevo Banco Suquía S.A. and former Nuevo Banco Bisel S.A. in the amount of 291,609 (see note 7.2.b)). |
28.3 | Banks and international institutions |
As of December 31, 2009 | As of December 31, 2008 | |||||||||||||||||||||||
Principal | Interest | Rate | Principal | Interest | Rate | |||||||||||||||||||
Short–term liabilities | 219,743 | 7,471 | 7.78 | % | 52,283 | 769 | 4.92 | % | ||||||||||||||||
Long–term liabilities (1) | — | — | — | 172,685 | 6,685 | 8.54 | % | |||||||||||||||||
Total | 219,743 | 7,471 | 224,968 | 7,454 | ||||||||||||||||||||
(1) | On June 16, 2006 the Bank and Credit Suisse First Boston International entered into loan agreement for USD 50,000,000, maturing on January 21, 2008, at LIBOR plus 1.95%. Such agreement includes restrictions mainly related to the compliance with the payments established. In the event of noncompliance with the agreement, the Bank will be unable to distribute dividends either directly through its subsidiaries. On January 18, 2008, an addendum was signed changing the expiration date to January 21, 2010, and establishing a nominal interest rate of 8.54% per anum. As of December 31, 2009 the Bank had duly complied with the obligations assumed with the loan. Finally, on January 21, 2010, the Bank paid off the loan. |
Accrued interest is included in the “Accrued interest, adjustments, foreign exchange and quoted price differences payable” under the “Other Liabilities from Financial Intermediation” in the accompanying Consolidated Balance Sheets. Amounts are unsecured. |
28.4 | Financing received from Argentine financial institutions | ||
The Bank borrowed funds under various credit facilities from the Argentine financial institutions for specific purposes, as follows: |
As of December 31, 2009 | As of December 31, 2008 | |||||||||||||||||||||||
Principal | Interest | Rate | Principal | Interest | Rate | |||||||||||||||||||
Short–term liabilities | 146,679 | 2,443 | 9.45 | % | 30,181 | 1,665 | 10.33 | % | ||||||||||||||||
Long–term liabilities | 17,278 | 23,571 | 2.00 | % | 18,958 | 23,002 | 2.00 | % | ||||||||||||||||
Total | 163,957 | 26,014 | 49,139 | 24,667 | ||||||||||||||||||||
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As of | ||||
December 31, | ||||
Periods | 2009 | |||
2011 | 4,202 | |||
2012 | 4,202 | |||
2013 | 4,202 | |||
2014 | 6,419 | |||
2015 | 6,863 | |||
2016 | 6,863 | |||
2017 | 6,862 | |||
2018 | 1,236 | |||
40,849 | ||||
28.5 | Others | ||
The rest of liabilities included in “Others liabilities from financial intermediation” are liabilities assumed for the Bank, mainly related to operating banking activities. |
As of December 31, 2009 | As of December 31, 2008 | |||||||||||||||||||||||
Principal | Interest | Rate | Principal | Interest | Rate | |||||||||||||||||||
Short–term liabilities | 652,241 | 89 | 0.02 | % | 545,146 | 37 | 0.02 | % | ||||||||||||||||
Long–term liabilities (1) | 80,445 | 1,168 | 3.96 | % | 80,835 | 1,123 | 3.96 | % | ||||||||||||||||
Total | 732,686 | 1,257 | 625,981 | 1,160 | ||||||||||||||||||||
(1) | Includes the liability assumed with -SEDESA related to the acquisition of preferred shares of former Nuevo Banco Bisel S.A. in the amount of 74,519 and 71,653 as of December 31, 2009 and 2008, respectively (see notes 3.7. and 7.1.f)). |
29. | EMPLOYEE BENEFIT PLANS |
30. | MINIMUM CAPITAL REQUIREMENTS |
Excess of actual Minimum | ||||||||||||
Required | Computable | Capital over Required | ||||||||||
Minimum Capital | Capital | Minimum Capital | ||||||||||
December 31, 2009 | 1,344,042 | 3,708,296 | 2,364,254 | |||||||||
December 31, 2008 | 1,341,598 | 3,113,825 | 1,772,227 |
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31. | CONSOLIDATED INCOME STATEMENTS AND BALANCE SHEET |
Consolidated Statements of Income | 2009 | 2008 (1) | 2007 (1) | |||||||||
Interest and fees on loans | 2,343,185 | 2,105,895 | 1,287,555 | |||||||||
Interest on bearing deposits with other banks | 363 | 7,010 | 19,917 | |||||||||
Interest on other receivables from financial intermediation | 43,825 | 174,038 | 67,022 | |||||||||
Interest on securities and foreign exchange purchased under resale agreements | 63,167 | 28,010 | 24,642 | |||||||||
Securities gains, net | 1,321,130 | 569,095 | 437,832 | |||||||||
Other interest income | 33,653 | 23,166 | 15,774 | |||||||||
Total interest income | 3,805,323 | 2,907,214 | 1,852,742 | |||||||||
Interest on deposits | 1,181,701 | 970,072 | 501,168 | |||||||||
Interest on securities and foreign exchange purchased under resale agreements | 2,314 | 5,723 | 10,998 | |||||||||
Interest on short-term borrowings | 37,631 | 29,227 | 4,860 | |||||||||
Interest on long-term debt | 106,278 | 150,457 | 161,374 | |||||||||
Other interest expense | 206,122 | 160,487 | 100,068 | |||||||||
Total interest expense | 1,534,046 | 1,315,966 | 778,468 | |||||||||
Net interest income | 2,271,277 | 1,591,248 | 1,074,274 | |||||||||
Provision for loan losses, net | (154,397 | ) | (226,705 | ) | 12,079 | |||||||
Net interest income after provision for loan losses | 2,116,880 | 1,364,543 | 1,086,353 | |||||||||
Service charges on deposit accounts and other fees | 663,000 | 570,968 | 370,147 | |||||||||
Credit-card service charges and fees | 158,418 | 153,413 | 102,856 | |||||||||
Other commissions | 23,365 | 19,557 | 19,789 | |||||||||
Foreign currency exchange trading income | 26,682 | 19,261 | 15,947 | |||||||||
Income from equity in other companies | 14,953 | 32,986 | 13,477 | |||||||||
Foreign exchange, net | 133,731 | 143,094 | 48,823 | |||||||||
Other | 140,430 | 119,576 | 143,831 | |||||||||
Total non-interest income | 1,160,579 | 1,058,855 | 714,870 | |||||||||
Commissions | 61,620 | 57,077 | 49,965 | |||||||||
Salaries and payroll taxes | 963,889 | 796,129 | 587,480 | |||||||||
Outside consultants and services | 64,436 | 54,375 | 41,802 | |||||||||
Depreciation of bank premises and equipment | 55,255 | 51,499 | 43,972 | |||||||||
Rent | 34,554 | 21,685 | 18,635 | |||||||||
Stationery and supplies | 11,472 | 15,050 | 14,511 | |||||||||
Electric power and communications | 45,747 | 37,004 | 31,980 | |||||||||
Advertising and publicity | 46,861 | 53,178 | 50,343 | |||||||||
Taxes | 79,444 | 70,702 | 53.242 | |||||||||
Directors’ and Statutory Audits’ fee | 36,413 | 26,941 | 37,695 | |||||||||
Insurance | 7,313 | 6,073 | 6,091 | |||||||||
Security services | 47,668 | 42,241 | 35,487 | |||||||||
Maintenance, conservation and repair expenses | 68,006 | 47,743 | 36,392 | |||||||||
Amortization of organization and development expenses | 62,151 | 63,210 | 55,906 | |||||||||
Provision for losses on other receivables and other allowances | 21,275 | 37,242 | 15,599 | |||||||||
Other | 255,083 | 118,638 | 132,495 | |||||||||
Total non-interest expense | 1,861,187 | 1,498,787 | 1,211,595 | |||||||||
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Consolidated Statements of Income (contd.) | 2009 | 2008 (1) | 2007 (1) | |||||||||
Income before income tax expense | 1,416,272 | 924,611 | 589,628 | |||||||||
Income tax expense | 659,250 | 261,207 | 92,345 | |||||||||
Income from continuing operations | 757,022 | 663,404 | 497,283 | |||||||||
Net income | 757,022 | 663,404 | 497,283 | |||||||||
Net income attributable to the noncontrolling interest | 5,092 | 3,354 | 2,083 | |||||||||
Net income attributable to the controlling interest | 751,930 | 660,050 | 495,200 | |||||||||
Earnings per common share | 1.26 | 1.00 | 0.72 | |||||||||
(1) | See note 4.2. |
2009 | 2008 (1) | |||||||
ASSETS | ||||||||
Cash | 4,298,395 | 824,387 | ||||||
Interest-bearing deposits in other banks | 363,041 | 2,187,043 | ||||||
Federal Funds sold and securities purchased under resale agreements of similar arrangements | 1,578,099 | 635,633 | ||||||
Trading account assets | 1,212,237 | 422,125 | ||||||
Investment securities available for sale | 5,512,247 | 4,410,387 | ||||||
Loans | 11,896,861 | 12,250,774 | ||||||
Allowance for loan losses | (451,693 | ) | (443,739 | ) | ||||
Premises and equipment | 775,962 | 644,318 | ||||||
Due from customers on acceptances | 381,501 | 147,843 | ||||||
Other assets | 1,004,392 | 921,181 | ||||||
Total assets | 26,571,042 | 21,999,952 | ||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||
Interest-bearing deposits | 14,502,258 | 12,214,166 | ||||||
Non interest-bearing deposits | 3,354,322 | 3,091,498 | ||||||
Federal Funds purchased and securities sold under repurchase agreements | 1,537,783 | 654,467 | ||||||
Other short-term borrowings | 1,045,748 | 732,223 | ||||||
Long-term borrowings | 724,012 | 1,199,675 | ||||||
Contingent liabilities | 87,172 | 82,155 | ||||||
Other liabilities | 986,288 | 518,765 | ||||||
Bank acceptances outstanding | 381,501 | 147,843 | ||||||
Subordinated corporate bonds | 572,473 | 521,681 | ||||||
Total liabilities | 23,191,557 | 19,162,473 | ||||||
Common stocks | 594,485 | 685,127 | ||||||
Retained appropriated earnings | 613,964 | 481,954 | ||||||
Retained unappropriated earnings | 1,747,091 | 1,251,569 | ||||||
Other shareholders’ equity | 403,261 | 403,261 | ||||||
Noncontrolling interests | 20,684 | 15,568 | ||||||
Total shareholders’ equity | 3,379,485 | 2,837,479 | ||||||
Total liabilities and shareholders’ equity | 26,571,042 | 21,999,952 | ||||||
(1) | See note 4.2. |
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32. | OPERATIONS BY GEOGRAPHICAL SEGMENT |
As of December 31, | ||||||||||||
2009 | 2008 | 2007 | ||||||||||
Total revenues | 5,032,704 | 4,110,010 | 2,736,273 | |||||||||
Argentina | 4,952,908 | 4,088,419 | 2,704,895 | |||||||||
Bahamas | 79,796 | 21,591 | 31,378 | |||||||||
Net income | 751,930 | 660,050 | 495,200 | |||||||||
Argentina | 687,294 | 656,611 | 485,079 | |||||||||
Bahamas | 64,636 | 3,439 | 10,121 | |||||||||
Total assets | 26,859,238 | 22,430,272 | 19,723,546 | |||||||||
Argentina | 25,882,809 | 22,036,045 | 19,198,844 | |||||||||
Bahamas | 976,429 | 394,227 | 524,702 |
33. | FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK |
33.1 | Derivatives | ||
In the normal course of business, the Bank enters into a variety of transactions principally in the foreign exchange and stock markets. Most counterparts in the derivative transactions are banks and other financial institutions. | |||
These instruments include: |
• | Options: they confer the right to the buyer, but no obligation, to receive or pay a specific quantity of an asset or financial instrument for a specified price at or before a specified date. Options may be traded on a stock exchange or under OTC (Over-the-Counter) agreements. | ||
• | Forwards and Futures: they are agreements to deliver or take delivery at a specified rate, price or index applied against the underlying asset or financial instrument, at a specific date. Futures are exchange traded at standardized amounts of the underling asset or financial instrument. Forwards contracts are OTC agreements and are principally dealt in by the Bank in securities/foreign exchange as forward agreements. | ||
• | Swaps: they are agreements between two parts with the intention to exchange cash flows and risks at a specific date and for a period in the future. Swaps may be exchange traded or OTC agreements. |
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As of December 31, | ||||||||
2009 | 2008 | |||||||
Forward purchases of foreign exchange without delivery of underlying asset (a) | 461,234 | 2,219,777 | ||||||
Forward sales of foreign exchange without delivery of underlying asset (a) | 286,416 | 1,214,988 | ||||||
Interest rate swaps (b) | 157,917 | 39,422 | ||||||
Put options sold (c) | 69,900 | 99,826 | ||||||
Call options sold (d) | 32,905 | — | ||||||
Call options taken (e) | 25,229 | 24,349 |
(a) | It is related mainly to negotiation transactions of forward foreign currency exchange rates, carried out through the local markets (ROFEX and MAE). The differences of such trading transactions are settled on a daily basis based on the prices agreed upon and their quoted price upon maturity; the underlying asset is not delivered or received. | |
The Bank enters into these transactions to take advantage of price differentials. Under Central Bank rules, they were valued at their quoted prices as of December 31, 2009 and 2008. They expired a few days later. Any quoted price-differences were charged to income. | ||
(b) | Related to the following interest rate swap transactions: |
b.1) | The Bank and the Central Bank intered into swap agreements entitling the Bank to collect, an a monthly basis, the positive difference between the Badlar interest rate in Argentine pesos and interest rates ranging from 15%, to 16.50% nominal interest rate p.a., applied on a total of notional values of 115,000. In the event that the difference between the rates is negative, the Bank shall be required to pay the difference. The agreement will expire between April 30, 2012 and October 31, 2014. The objective of the transactions is placement of medium- and long-term loans set forth in Central Bank Communiqué “A” 4,776, as supplemented. | ||
b.2) | Relates to interest rate swap agreements whereby on a quarterly basis the Bank shall be entitled to receive the positive difference between 10.25% nominal interest rate p.a. and the variable rate agreed-upon in relation to a loan granted by the Bank (Libor at 90 days plus 2.9%), applied to the residual principal of such loan. In the event that the differences between both rates were negative, the Bank shall be required to pay the difference. This agreement expires September 27, 2018. The amount booked in the Bank’s memorandum accounts is related to the residual principal amount of the loan of notional values of 41,917 and 39,422, respectively. | ||
b.3) | The Bank intered into ten swap agreements entitling the Bank to receive, on a monthly basis, the positive difference between 16.35% nominal interest rate p.a. and the Badlar interest rate in Argentine pesos, of notional values of 1,000. In the event that the difference between both rates is negative, the Bank shall be required to pay the difference. The agreement will expire on April 30, 2010. |
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(c) | As of 2009 and 2008, the Bank recorded in memorandum accounts the amounts representing obligations of the Bank under put options sold related to the Federal Government Bond coupons established in Presidential Decrees Nos. 905/02 and 1,836/02. Such options were imposed by the Federal Government to all financial institutions. | |
During the Argentine crisis and pursuant to such decrees, the deposits which were denominated in US Dollars were exchanged for peso denominated government bonds using a Ps.1.4 to the USD 1.00 exchange rate. The bonds received by the depositors carried an interest rate plus CER (an inflation index) adjustment. | ||
In order to enhance the public’s trust in the system and the exchange mechanisms, the Central Bank effectively required the banks to issue a put option to the depositors who so requested. Such put options will entitle the bondholders to receive 1.4 exchange rate, plus accrued interest plus CER. This was intended to effectively provide a floor for the yield of such government bonds for the holders, therefore, if the value of these bonds were to decrease below the terms of the put options (ie, Ps.1.4 exchange rate plus interest plus CER), only the original depositor would then be able to present the put options to the Bank and receive such value. These options expire 30 days after the expiration of each coupon received by the depositors, in varying dates through 2013. As it is a put option established by the Federal Government to the detriment of the Bank, the holders of such options did not pay any type of premium to the Bank and thus the Bank has never recognized any income from these options, and has never established an initial liability since it received no up-front premium. | ||
After the exchange, these government bonds have increased in value significantly given the improvement of the Argentine’s economy and therefore of the government’s creditworthiness. As a result of that, the management of the Bank estimates that many of the original depositors had sold their bonds. Consequently, the options had been extinguished. | ||
Therefore the options have never had any intrinsic value. It should be noted that the interest rate and terms of the options are the same as the bonds and therefore the options will only be exercised in case of government default. The Bank understands that such options have only a di minimus value. Under Central Bank rules, they were valued at their original strike price and recorded only in memo accounts. | ||
(d) | Related to a call option sold on a piece of real property belonging to the Bank, entitling the Bank to receive a minimum income of USD 300,000 or the resulting amount from applying a 15% nominal interest rate p.a. on a principal amount of USD 5,100,000 plus notarial expenses, maintenance expenses and service expenses, whichever higher. This option expires in September 2010 and is subject to repayment of a loan granted by the Bank. | |
(e) | As of December 31, 2009, this is related to purchased put options of trust securities to be issued by financial trust Fideicomiso Financiero Best Consumer Finance Series X and which may be received by the Bank as payment of the assignment value established in the assignment of rights agreement executed on December 16, 2009, with Credilogros Compañía Financiera S.A. The initial price was set at 25,000, which will accrue a minimum applicable rate of 21% compounded on a monthly basis. The option may be exercised within 180 days as from issuance, delivery and registration of the transacted securities under Banco Macro S.A.’s name. |
Transactions | 2009 | 2008 | 2007 | |||||||||
Premiums on reverse repurchase agreements | 63,168 | (10,049 | ) | 25,719 | ||||||||
Premiums on repurchase agreements | (2,314 | ) | 10,705 | (12,379 | ) | |||||||
Interest rate swaps | 4,344 | 1,696 | 2,168 | |||||||||
Forward foreign-currency transactions offset | 13,992 | 130,127 | 336 | |||||||||
Transactions with options | 2,654 | 5,162 | 2,025 | |||||||||
Total | 81,844 | 137,641 | 17,869 | |||||||||
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33.2 | Credit-related financial instruments | ||
The Bank’s exposure to credit loss in the event of the counterparts’ failure to fulfill the commitments to extending credit, guarantees granted and foreign trade acceptances is represented by the contractual notional amount of those investments. | |||
A summary of credit exposure related to these items is shown below (*): |
As of December 31, | ||||||||
2009 | 2008 | |||||||
Other guarantees provided covered by debtors classification regulations | 85,213 | 84,136 | ||||||
Other guarantees provided not covered by debtors classification regulations | 130,826 | 57,758 | ||||||
Other covered by debtors classification standards | 250,675 | 90,085 |
(*) | Most of this amount as of December 31, 2009 and 2008, have a remaining maturity of less than one year. |
As of December 31, | ||||||||
2009 | 2008 | |||||||
Checks drawn on the Bank pending clearing | 997,472 | 781,996 | ||||||
Checks drawn on other Banks | 261,186 | 259,303 |
33.3 | Trust activities | ||
See note 13. |
34. | BUSINESS SEGMENT CONSOLIDATED INFORMATION |
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35. | SUMMARY OF SIGNIFICANT DIFFERENCES BETWEEN CENTRAL BANK RULES AND UNITED STATES ACCOUNTING PRINCIPLES |
35.1. | Income taxes |
a) | As explained in note 5, Central Bank rules do not require the recognition of deferred tax assets and liabilities and, therefore, income tax is recognized on the basis of amounts due in accordance with Argentine tax regulations and no deferred tax and liabilities are recognized. |
As of December 31, | ||||||||
Description | 2009 | 2008 | ||||||
Deferred tax assets: | ||||||||
Governments and private securities | 2,386 | 20,879 | ||||||
Loans | 105,963 | 106,691 | ||||||
Intangible assets | 9,487 | 15,252 | ||||||
Allowance for loss contingencies | 62,535 | 55,976 | ||||||
Net tax loss carry forwards | 754 | 888 | ||||||
Other | 36,955 | 28,476 | ||||||
Total deferred assets | 218,080 | 228,162 | ||||||
Deferred tax liabilities: | ||||||||
Property, equipment and other assets | (6,768 | ) | (5,952 | ) | ||||
Foreign exchange difference | (19,224 | ) | (15,688 | ) | ||||
Other | — | (14,268 | ) | |||||
Total deferred liabilities | (25,992 | ) | (35,908 | ) | ||||
Deferred tax asset | 192,088 | 192,254 | ||||||
Allowance for deferred tax assets | (65,673 | ) | (89,308 | ) | ||||
Net deferred tax assets under US GAAP | 126,415 | 102,946 | ||||||
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Expiration year | Amount | |||
2010 | 250 | |||
2011 | 421 | |||
2012 | 1,294 | |||
2013 | 72 | |||
2014 | 118 | |||
2,155 | ||||
As of December 31, | ||||||||||||
2009 | 2008 | 2007 | ||||||||||
Net deferred tax assets at the beginning of the year | 102,946 | 123,077 | 182,902 | |||||||||
Net deferred tax liabilities acquired from acquisition on business combination (*) | — | — | (3,359 | ) | ||||||||
Net amount recorded in comprehensive income | (146,525 | ) | 42,132 | 8,333 | ||||||||
Net deferred tax income / (expense) for the year | 169,994 | (62,263 | ) | (64,799 | ) | |||||||
Net deferred tax assets at the end of the year | 126,415 | 102,946 | 123,077 | |||||||||
(*) | See note 35.7. |
Year ended December 31, | ||||||||||||
Description | 2009 | 2008 | 2007 | |||||||||
Income tax in accordance with Central Bank regulations | 659,250 | 261,207 | 92,345 | |||||||||
Deferred tax charges | (169,994 | ) | 62,263 | 64,799 | ||||||||
Total income tax expense in accordance with US GAAP | 489,256 | 323,470 | 157,144 | |||||||||
Year ended December 31, | ||||||||||||
Description | 2009 | 2008 | 2007 | |||||||||
Pre-tax income in accordance with US GAAP | 1,483,025 | 954,641 | 561,171 | |||||||||
Statutory income tax rate | 35.00 | % | 35.00 | % | 35.00 | % | ||||||
Tax on net income at statutory rate | 519,059 | 334,124 | 196,410 | |||||||||
Permanent differences at the statutory rate: | ||||||||||||
- Variation of allowances | (23,635 | ) | (30,159 | ) | 15,354 | |||||||
- Income not subject to income tax | (23,955 | ) | (5,098 | ) | (58,432 | ) | ||||||
- Others | 17,787 | 24,603 | 3,812 | |||||||||
Income tax in accordance with US GAAP | 489,256 | 323,470 | 157,144 | |||||||||
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b) | In addition, as of December 31, 2009, 2008 and 2007 the Bank had asset of 10,280, 25,767 and 45,293, respectively, for the credit for Tax on minimum presumed income. As mentioned in note 5 to the financial statements, under Central Bank Rules, such credit is considered to be an asset because Management estimates it will be used within ten years, which is the period allowed by the Central Bank Communiqué “A” 4,295, as amended. |
35.2. | Exposure to the Argentine Public Sector and Private Securities |
a) | Loans—Non-financial federal government sector |
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b) | Holdings in special investment accounts in accordance with Central Bank rules |
c) | Instruments issued by Central Bank of Argentina and other unlisted securities |
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Gains as of December 31, | ||||||||||||
Trading Securities | 2009 | 2008 | 2007 | |||||||||
Debt Securities Issued by Argentinian Government | 839 | 16,874 | 467 | |||||||||
Corporate Bonds | 601 | 319 | (315 | ) | ||||||||
Other | 2,308 | (656 | ) | 2,835 | ||||||||
3,748 | 16,537 | 2,987 | ||||||||||
Amortized Cost | Gross Unrealized Gains | Fair Value | ||||||||||
2009 | 5,938,456 | 313,865 | 6,252,321 | |||||||||
2008 | 4,416,932 | (104,792 | ) | 4,312,140 | ||||||||
2007 | 3,363,428 | 6,727 | 3,370,155 |
Proceeds from sales | ||||||||||||
as of December 31, | ||||||||||||
Available for sale securities | 2009 (*) | 2008 (*) | 2007 (*) | |||||||||
Debt Securities Issued by Argentinian Government and others | 1,947,021 | 3,450,382 | 2,050,941 |
(*) | As of December 31, 2009, 2008 and 2007, realized gains as a result of those sales amounted to 388,190, 2,538 and 17,832, respectively. |
Securities | 2008 | Increase | Decrease | 2009 | ||||||||||||
Holdings in special investment accounts | (51,130 | ) | 369,617 | — | 318,487 | |||||||||||
Instrument issued by Central Bank of Argentina and other unlisted securities | (53,662 | ) | 52,643 | (3,603 | ) | (4,622 | ) | |||||||||
Total | (104,792 | ) | 422,260 | (3,603 | ) | 313,865 | ||||||||||
Securities | 2007 | Increase | Decrease | 2008 | ||||||||||||
Holdings in special investment accounts | 7,648 | — | (58,778 | ) | (51,130 | ) | ||||||||||
Instrument issued by Central Bank of Argentina and other unlisted securities | (921 | ) | 2,538 | (55,279 | ) | (53,662 | ) | |||||||||
Total | 6,727 | 2,538 | (114,057 | ) | (104,792 | )(*) | ||||||||||
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Securities | 2006 | Increase | Decrease | 2007 | ||||||||||||
Instrument issued by Central Bank of Argentina and other unlisted securities | 27,579 | 1,957 | (22,809 | ) | 6,727 | |||||||||||
Total | 27,579 | 1,957 | (22,809 | ) | 6,727 | |||||||||||
(*) | FASB ASC 320 requires that if the decline in fair value is judged to be other than temporary, the cost of the security shall be written down to fair value, and the write down amount shall be included in earnings. As of December 31, 2008 the Bank evaluated the argentine macroeconomic environment and this decline in fair value to determine whether it was other than temporary and did not recognize any other than temporary impairment. |
35.3. | Loan origination fees |
35.4. | Allowance for loan losses |
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a) | Recoveries and write-offs |
b) | Credit Card Loans |
c) | Impaired loans—Non Financial Private Sector and residents abroad |
Fiscal year ended December 31, | ||||||||||||
2009 | 2008 | 2007 | ||||||||||
Total amount of loans considered as impaired (*) | 459,576 | 365,406 | 213,216 | |||||||||
Amount of loans considered as impaired for which there is a related allowance for credit losses | 383,929 | 309,106 | 158,836 | |||||||||
Amount of loans considered as impaired for which there is no related allowance for credit losses | 75,647 | 56,300 | 54,380 | |||||||||
Reserves allocated to impaired loans | 184,287 | 160,357 | 89,665 | |||||||||
Average balance of impaired loans during the fiscal year | 457,833 | 288,430 | 215,300 | |||||||||
Interest income recognized on impaired loans | 45,766 | 20,638 | 9,119 |
(*) | Includes 245,711, 193,382 and 84,972 of consumer loans as of December 31, 2009, 2008 and 2007, respectively. |
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Fiscal year ended December 31, | ||||||||||||
2009 | 2008 | 2007 | ||||||||||
Balance at the beginning of the fiscal year | 330,912 | 114,356 | 97,116 | |||||||||
Provision for loan losses | 186,943 | 313,162 | 98,897 | |||||||||
Charge offs | (175,355 | ) | (76,246 | ) | (38,199 | ) | ||||||
Reversals | (2,596 | ) | (20,360 | ) | (43,458 | ) | ||||||
Balance at the end of the fiscal year | 339,904 | 330,912 | 114,356 | |||||||||
d) | Interest recognition — non-accrual loans |
35.5. | Intangible assets |
a) | Judgments due to court decisions related to foreign currency- denominated deposits |
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b) | Software costs |
c) | Organizational costs |
35.6. | Vacation accrual |
35.7. | Business Combinations |
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a) | Acquisition of controlling interest in former Banco Bansud S.A. |
b) | Merger with and into former Banco Bansud S.A. — a downstream merger |
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c) | Acquisition of Nuevo Banco Suquía S.A. — Merger with and into Former Nuevo Banco Suquía S.A. |
c.1) | Acquisition of Nuevo Banco Suquía S.A. |
c.2) | Merger with and into Former Nuevo Banco Suquía S.A. |
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d) | Acquisition of controlling interest in Banco del Tucumán S.A. |
Net assets | 98,100 | (*) | ||
% acquired | 75 | % | ||
Net assets acquired | 73,575 | |||
Purchase price | 45,961 | |||
Negative Goodwill | (27,614) | (**) |
(*) | Includes 1,567 of deferred tax liability. | |
(**) | The negative goodwill has been applied to reduce on a pro rata basis the amounts assigned to the non-current intangible and tangible assets acquired. |
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Additional interest acquired in | ||||||||
2007 | 2006 | |||||||
Net assets | 174,713 | (*) | 144,256 | (*) | ||||
% acquired | 10.09 | % | 4.84 | % | ||||
Net assets acquired | 17,628 | 6,982 | ||||||
Purchase price | 9,709 | 2,907 | ||||||
Negative Goodwill | (7,919) | (**) | (4,075) | (**) |
(*) | Includes 3,359 (liability) and 143 (asset) of deferred tax, respectively. | |
(**) | The negative goodwills have been applied to reduce on a pro rata basis the amounts assigned to the non-current intangible and tangible assets acquired. |
Increase / (Decrease) | ||||||||||||||||||||||||
Consolidated | ||||||||||||||||||||||||
shareholders’ Equity as of | Consolidated Net income Year | |||||||||||||||||||||||
December 31 | ended December 31, | |||||||||||||||||||||||
2009 | 2008 | 2007 | 2009 | 2008 | 2007 | |||||||||||||||||||
Deferred taxes, net of allowances | (4,949 | ) | (4,066 | ) | (411 | ) | (883 | ) | (3,655 | ) | 4,194 | |||||||||||||
Write off of tangible and intangible assets as a result of negative goodwill allocated | 2,300 | 3,339 | 8,133 | (1,039 | ) | (4,794 | ) | (6,270 | ) | |||||||||||||||
Judgments due to Court decisions related to foreign currency-denominated deposit | (1,418 | ) | (2,038 | ) | (4,339 | ) | 620 | 2,301 | 4,076 | |||||||||||||||
Other purchase price adjustments | (3,469 | ) | (2,888 | ) | (3,296 | ) | (581 | ) | 408 | (2,469 | ) | |||||||||||||
Total | (7,536 | ) | (5,653 | ) | 87 | (1,883 | ) | (5,740 | ) | (469 | ) | |||||||||||||
e) | Acquisition of Nuevo Banco Bisel S.A. — Merger with and into Former Nuevo Banco Bisel S.A. |
e.1) | Acquisition of Nuevo Banco Bisel S.A. |
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Net assets | 61,214 | (*) | ||
% acquired | 100 | % | ||
Purchase price | 19,509 | |||
Extraordinary gain | (41,705) | (**) |
(*) | Includes 138,040 of deferred tax assets, net of allowances. | |
(**) | The negative goodwill has been applied to reduce on a pro rata basis the amounts assigned to the non-current intangible (35,555), mainly related to customers, and tangible assets (123,114) acquired. After reducing to zero such assets, the remaining excess is considered an extraordinary gain. |
e.2) | Merger with and into Former Nuevo Banco Bisel S.A. |
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f) | Other |
35.8. | Reporting on Comprehensive Income (loss) |
35.9. | Restatement of financial statements in constant pesos |
35.10. | Accounting for derivative instruments and hedging activities |
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As December 31, 2009 | Assets derivatives | Liability derivatives | ||||||||||
Derivates not designated as | 2009 | 2009 | ||||||||||
hedging instruments under | Balance sheet | Balance sheet | ||||||||||
FASB ASC 815 | location (1) | Fair value | location (1) | Fair value | ||||||||
Interest rate contracts | Other receivables from financial intermediation | 7,748 | Other liabilities from financial intermediation | 20,271 | ||||||||
Foreign exchange contracts | Other receivables from financial intermediation | 5,262 | Other liabilities from financial intermediation | — | ||||||||
Total derivatives | 13,010 | 20,271 | ||||||||||
Amount of gain | ||||||
Location of gain | or (loss) | |||||
Derivates not designated as | or (loss) recognized in | recognized in | ||||
hedging instruments under | income on | income on | ||||
FASB ASC 815 | derivative (1) | derivative | ||||
Interest rate contracts | Financial income-Other / (Financial expense-Other) | (21,325 | ) | |||
Foreign exchange contracts | Financial income-Other / (Financial expense-Other) | (13,992 | ) | |||
Total | (35,317 | ) | ||||
(1) | According to Central Bank rules |
35.11. | Foreign currency translation |
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35.12. | Accounting for guarantees |
35.13. | Earning Per Share |
2009 | 2008 | 2007 | ||||||||||
Numerator: | ||||||||||||
Net income attributable to the controlling interest under US GAAP | 986,285 | 628,243 | 384,040 | |||||||||
Denominator: | ||||||||||||
Common stock outstanding for the fiscal year (1) | 594,485,168 | 608,437,455 | 683,943,437 | |||||||||
Common stock issued (2) | — | — | 35,536 | |||||||||
Weighted-average common shares outstanding for the year | 595,633,666 | 658,124,254 | 683,952,394 | |||||||||
Basic EPS attributable to controlling interest under US GAAP - stated in pesos | 1,66 | 0,95 | 0,56 |
(1) | Common stock of the Bank prior to the capital increases mentioned in note 9. | |
(2) | Capital increases mentioned in note 9. |
35.14. | Corporate Bonds |
a) | Issuance Cost of Corporate Bonds and Interest recognition |
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b) | Repurchased Own Corporate Bonds |
35.15. | Foreclosed assets |
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35.16. | Noncontrolling Interests in Subsidiaries |
35.17. | Set forth below are the significant adjustments to consolidated net income and shareholders’ equity which would be required if US GAAP instead of Central Bank rules had been applied: |
Increase / (decrease) | ||||||||||||||||
Consolidated Net Income | ||||||||||||||||
Years ended December 31, | ||||||||||||||||
Ref. | 2009 | 2008 | 2007 | |||||||||||||
Net income in accordance with Central Bank rules | 751,930 | 660,050 | 495,200 | |||||||||||||
Income taxes | ||||||||||||||||
Deferred taxes, net of allowances | 35.1.a) | 170,877 | (58,608 | ) | (68,993 | ) | ||||||||||
Exposure to the Argentine public sector and private securities | ||||||||||||||||
Loans — Non-financial federal government sector | 35.2.a) | 202,783 | 3,726 | (2,869 | ) | |||||||||||
Holdings in special investment accounts in accordance with Central Bank rules | 35.2.b) | (92,109 | ) | 19,139 | 2,661 | |||||||||||
Instrument issued by Central Bank of Argentina and other unlisted securities | 35.2.c) | 12,661 | (15,020 | ) | 22,428 | |||||||||||
Loan origination fees | 35.3 | (4,877 | ) | (13,880 | ) | (3,071 | ) | |||||||||
Allowance for loan losses | ||||||||||||||||
Credit Card Loans | 35.4.b) | (899 | ) | (2,297 | ) | (1,661 | ) | |||||||||
Impaired Loans — Non Financial Private Sector and residents abroad | 35.4.c) | 1,604 | 3,667 | (3,738 | ) | |||||||||||
Interest recognition — non accrual loans | 35.4.d) | (3,251 | ) | (1,824 | ) | 382 | ||||||||||
Intangible assets | ||||||||||||||||
Judgments due to court decisions related to foreign currency — denominated deposits | 35.5.a) | (15,554 | ) | 25,677 | (45,317 | ) | ||||||||||
Software costs | 35.5.b) | 12,017 | 1,431 | (23,437 | ) | |||||||||||
Organizational costs | 35.5.c) | 263 | 365 | (7,153 | ) | |||||||||||
Vacation accrual | 35.6 | (11,554 | ) | (19,341 | ) | (14,774 | ) | |||||||||
Business combination | ||||||||||||||||
Acquisition of controlling interest in former Banco Bansud S.A. | 35.7.a) | 355 | 2,335 | 4,630 | ||||||||||||
Merger with and into former Banco Bansud S.A. — a downstream merger | 35.7.b) | 1,177 | (386 | ) | (527 | ) | ||||||||||
Acquisition of Nuevo Banco Suquía S.A.— Merger with and into Former Nuevo Banco Suquía S.A. | 35.7.c) | 2,348 | 2,349 | 2,325 | ||||||||||||
Acquisition of Banco de Tucumán S.A. | 35.7.d) | (1,883 | ) | (5,740 | ) | (469 | ) | |||||||||
Acquisition of Nuevo Banco Bisel S.A. — Merger with and into Former Nuevo Banco Bisel S.A. | 35.7.e) | 13,567 | (7,868 | ) | 11,973 | |||||||||||
Other | 35.7.f) | 426 | 523 | 1,336 | ||||||||||||
Derivative instruments | 35.10 | (19,722 | ) | 4,754 | 2,446 | |||||||||||
Foreign currency translation | 35.11 | 15 | 8,859 | 2,956 | ||||||||||||
Corporate Bonds | ||||||||||||||||
Issuance Cost of Corporate Bonds and Interest recognition | 35.14.a) | (5,241 | ) | (5,189 | ) | 8,112 | ||||||||||
Repurchased Own Corporated Bonds | 35.14.b) | (27,633 | ) | 27,633 | — | |||||||||||
Foreclosed assets | 35.15 | 1,353 | (2,112 | ) | 1,600 | |||||||||||
Noncontrolling interest in subsidiaries | 35.16 | 5,116 | 2,928 | 1,497 | ||||||||||||
Net income in accordance with US GAAP | 993,769 | 631,171 | 385,537 | |||||||||||||
Less: Net income attributable to the noncontrolling interest | 7,484 | 2,928 | 1,497 | |||||||||||||
Net income attributable to the controlling interest in accordance with US GAAP | 986,285 | 628,243 | 384,040 | |||||||||||||
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2009 | 2008 | 2007 | ||||||||||
Net income in accordance with US GAAP | 993,769 | 631,171 | 385,537 | |||||||||
Other comprehensive income, net of tax: | 272,117 | (78,246 | ) | (15,475 | ) | |||||||
Total comprehensive income, net in accordance with US GAAP | 1,265,886 | 552,925 | 370,062 | |||||||||
Less: Comprehensive income attributable to noncontrolling interest | (55 | ) | (167 | ) | (220 | ) | ||||||
Comprehensive income attributable to controlling interest | 1,265,941 | 553,092 | 370,282 | |||||||||
Total earning per share attributable to controlling interest in accordance with US GAAP — stated in pesos | 1.66 | 0.95 | 0.56 | |||||||||
Weighted average number of shares Outstanding (in thousands) | 595,634 | 658,124 | 683,952 |
Increase / (decrease) | ||||||||||||||||
Consolidated Shareholders’ Equity | ||||||||||||||||
as of December 31, | ||||||||||||||||
Ref. | 2009 | 2008 | 2007 | |||||||||||||
Shareholders’ equity in accordance with Central Bank rules | 3,358,801 | 2,821,911 | 2,713,020 | |||||||||||||
Income taxes | ||||||||||||||||
Deferred taxes, net of allowances | 35.1.a) | 131,364 | 107,012 | 123,488 | ||||||||||||
Exposure to the Argentine public sector and private securities | ||||||||||||||||
Loans — Non-financial federal government sector | 35.2.a) | (82,537 | ) | (285,320 | ) | (289,046 | ) | |||||||||
Holdings in special investment accounts in accordance with Central Bank rules | 35.2.b) | 237,869 | (39,639 | ) | — | |||||||||||
Instruments issued by Central Bank of Argentina and other unlisted securities | 35.2.c) | (4,243 | ) | (65,944 | ) | 1,817 | ||||||||||
Loan origination fees | 35.3 | (38,920 | ) | (34,043 | ) | (20,163 | ) | |||||||||
Allowance for loan losses | ||||||||||||||||
Credit Card Loans | 35.4.b) | (6,796 | ) | (5,897 | ) | (3,600 | ) | |||||||||
Impaired Loans — Non Financial Private Sector and residents abroad | 35.4.c) | (8,935 | ) | (10,539 | ) | (14,206 | ) | |||||||||
Interest recognition — non accrual loans | 35.4.d) | (7,694 | ) | (4,443 | ) | (2,619 | ) | |||||||||
Intangible assets | ||||||||||||||||
Judgments due to court decisions related to foreign currency — denominated deposits | 35.5.a) | (100,528 | ) | (84,974 | ) | (110,651 | ) | |||||||||
Software costs | 35.5.b) | (26,858 | ) | (38,875 | ) | (40,306 | ) | |||||||||
Organizational costs | 35.5.c) | (8,028 | ) | (8,291 | ) | (8,656 | ) | |||||||||
Vacation accrual | 35.6 | (72,676 | ) | (61,122 | ) | (41,781 | ) | |||||||||
Business combination | ||||||||||||||||
Acquisition of controlling interest in former Banco Bansud S.A. | 35.7.a) | (9,254 | ) | (9,609 | ) | (11,944 | ) | |||||||||
Merger with and into former Banco Bansud S.A. — a downstream merger | 35.7.b) | (5,444 | ) | (6,621 | ) | (6,235 | ) | |||||||||
Acquisition of Nuevo Banco Suquía S.A.- Merger with and into Former Nuevo Banco Suquía S.A. | 35.7.c) | (43,948 | ) | (46,296 | ) | (48,645 | ) | |||||||||
Acquisition of Banco de Tucumán S.A. | 35.7.d) | (7,536 | ) | (5,653 | ) | 87 | ||||||||||
Acquisition of Nuevo Banco Bisel S.A. — Merger with and into Former Nuevo Banco Bisel S.A. | 35.7.e) | (32,840 | ) | (51,721 | ) | (43,853 | ) | |||||||||
Other | 35.7.f) | (7,448 | ) | (7,874 | ) | (8,397 | ) | |||||||||
Derivative instruments | 35.10 | (12,522 | ) | 7,200 | 2,446 | |||||||||||
Corporate Bonds | ||||||||||||||||
Issuance Cost of Corporate Bonds and Interest recognition | 35.14.a) | 7,970 | 13,211 | 18,400 | ||||||||||||
Repurchased Own Corporate Bonds | 35.14.b) | — | 27,633 | — | ||||||||||||
Foreclosed assets | 35.15 | 12,446 | 11,093 | 13,205 | ||||||||||||
Noncontrolling Interests in Subsidiaries | 35.16 | 20,684 | 15,568 | 12,640 | ||||||||||||
Banco Macro S.A. Shareholders’ equity in accordance with US GAAP (1) | 3,292,927 | 2,236,767 | 2,235,001 | |||||||||||||
Noncontrolling interests | (23,052 | ) | (15,568 | ) | (12,640 | ) | ||||||||||
Shareholders’ equity attributable to the controlling interest in accordance with US GAAP | 3,269,875 | 2,221,199 | 2,222,361 | |||||||||||||
(1) | Includes the effects of other comprehensive income. |
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35.18. | Set forth below are the accumulated other comprehensive income (loss) balances, as of December 31, 2009, 2008 and 2007 — net of related income tax effects: |
Accumulated | ||||||||||||
Unrealized | Other | |||||||||||
Foreign | Gains/ | Comprehensive | ||||||||||
Currency | (losses) on | Income / | ||||||||||
Items (1) | securities (2) | (Loss) | ||||||||||
Balances as of December 31, 2006 | 11,228 | 17,926 | 29,154 | |||||||||
Current-fiscal year change | (2,956 | ) | (20,852 | ) | (23,808 | ) | ||||||
Tax effects | 1,035 | 7,298 | 8,333 | |||||||||
Balances as of December 31, 2007 | 9,307 | 4,372 | 13,679 | |||||||||
Current-fiscal year change | (8,859 | ) | (111,519 | ) | (120,378 | ) | ||||||
Tax effects | 3,100 | 39,032 | 42,132 | |||||||||
Balances as of December 31, 2008 | 3,548 | (68,115 | ) | (64,567 | ) | |||||||
Current-fiscal year change | (15 | ) | 418,657 | 418,642 | ||||||||
Tax effects | 5 | (146,530 | ) | (146,525 | ) | |||||||
Balances as of December 31, 2009 | 3,538 | 204,012 | 207,550 | |||||||||
(1) | See note 35.11. | |
(2) | See note 35.2. |
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35.19. | Statement of Cash flows |
Year ended December 31, | ||||||||||||
2009 | 2008 | 2007 | ||||||||||
Causes of changes in cash and cash equivalents | ||||||||||||
Cash provided by (used in) operating activities | ||||||||||||
Interest received on loans, leases and investments | 3,424,863 | 2,904,605 | 1,681,340 | |||||||||
Fees and commissions received | 1,043,723 | 882,354 | 658,863 | |||||||||
Purchases and sales of trading securities | 734,902 | 21,547 | (17,146 | ) | ||||||||
Other sources of cash | 4,920 | 28,909 | 23,884 | |||||||||
Less: | ||||||||||||
Interest paid | (1,667,293 | ) | (1,196,698 | ) | (701,232 | ) | ||||||
Fees and commissions paid | (220,860 | ) | (168,091 | ) | (146,606 | ) | ||||||
Cash paid to suppliers and employees | (1,405,088 | ) | (1,120,663 | ) | (873,034 | ) | ||||||
Increase in intangible assets | (74,471 | ) | (61,991 | ) | (91,883 | ) | ||||||
Increase in other receivables from financial intermediation and other assets | (431,579 | ) | (358,736 | ) | (541,080 | ) | ||||||
Other uses of cash | (376,475 | ) | (111,360 | ) | (99,335 | ) | ||||||
Net cash provided by (used in) operating activities | 1,032,642 | 819,876 | (106,229 | ) | ||||||||
Plus: | ||||||||||||
Cash provided by (used in) investing activities | ||||||||||||
Available for sale | ||||||||||||
- Purchases of investment securities | (15,105,006 | ) | (10,668,191 | ) | (6,484,441 | ) | ||||||
- Proceeds from sales of investment securities | 13,257,958 | 10,294,965 | 6,143,565 | |||||||||
Increase in loans and leases, net | (469,106 | ) | (1,562,881 | ) | (3,674,912 | ) | ||||||
Proceeds from sale of Bank premises and equipment | 2,795 | 9,694 | 3,808 | |||||||||
Purchases of Bank premises and equipment | (37,124 | ) | (82,513 | ) | (81,469 | ) | ||||||
Net cash used in investing activities | (2,350,483 | ) | (2,008,926 | ) | (4,093,449 | ) | ||||||
Cash provided by (used in) financing activities | ||||||||||||
Increase in deposits, net | 2,742,903 | 2,258,332 | 3,583,214 | |||||||||
Increase in long term borrowings | 47,494 | 101,711 | 756,914 | |||||||||
Decrease in long term borrowings | (143,024 | ) | (132,490 | ) | (11,521 | ) | ||||||
Increase / (Decrease) in other short term liabilities, net | 747,649 | (80,864 | ) | 463,998 | ||||||||
Capital increase | — | — | 182 | |||||||||
Own shares reacquired | (56,665 | ) | (380,164 | ) | — | |||||||
Cash dividends paid | (148,350 | ) | (171,004 | ) | (102,591 | ) | ||||||
Net cash provided by financing activities | 3,190,007 | 1,595,521 | 4,690,196 | |||||||||
Increase in cash and cash equivalents | 1,872,166 | 406,471 | 490,518 | |||||||||
Cash at the beginning of fiscal year | 3,523,897 | 3,117,426 | 2,626,908 | |||||||||
Cash at the end of fiscal year | 5,396,063 | 3,523,897 | 3,117,426 | |||||||||
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Year ended December 31, | ||||||||||||
2009 | 2008 | 2007 | ||||||||||
Net income for the fiscal year | 751,930 | 660,050 | 495,200 | |||||||||
Adjustments to reconcile net income to net cash from operating activities: | ||||||||||||
Amortization and depreciation | 123,220 | 116,199 | 106,077 | |||||||||
Provision for loan losses and special reserves, net of reversals | 210,200 | 290,778 | 40,388 | |||||||||
Net loss / (income) from government and private securities | 104,598 | (50,788 | ) | (47,757 | ) | |||||||
Foreign exchange differences | (133,731 | ) | (143,094 | ) | (48,823 | ) | ||||||
Equity loss / (gain) of unconsolidated subsidiaries | (7,618 | ) | 25,847 | 890 | ||||||||
Increase from intangible assets | (74,471 | ) | (61,991 | ) | (91,883 | ) | ||||||
Non-computable VAT credit | 21,499 | 23,037 | 21,066 | |||||||||
Valuation allowance of loans to the government sector | — | 66,125 | 54,274 | |||||||||
Income tax | 446,637 | 168,862 | 15,384 | |||||||||
Decrease in other receivables from financial intermediation and other assets | (431,579 | ) | (358,736 | ) | (541,080 | ) | ||||||
Net Increase in interest receivable and payable and other accrued income and expenses | (10,571 | ) | (12,798 | ) | (6,607 | ) | ||||||
Non controlling interest in subsidiaries | 5,092 | 3,354 | 2,083 | |||||||||
Net Decrease / (Increase) in other sources or uses of cash | 27,436 | 93,031 | (105,441 | ) | ||||||||
Net cash provided by (used in) operating activities | 1,032,642 | 819,876 | (106,229 | ) | ||||||||
35.20. | Forward transactions pending settlement |
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35.21. | Fair value of financial instruments |
• | Inclusion of nonfinancial assets and nonfinancial liabilities, which for the Bank primarily related to other real estate owned. |
• | Estimation of fair value when the volume o level of activity for an asset or liability have significantly decreased in relation to normal market activity; additional guidance to determine when a transaction is not orderly; and enhanced disclosure of fair value measurements. |
a) | Quoted prices for similar assets or liabilities in active markets; | ||
b) | Quoted prices for identical or similar assets or liabilities in less-active markets; | ||
c) | Pricing models whose inputs are observable for substantially the full term of the asset or liability; and | ||
d) | Pricing models whose inputs are derived principally from or corroborated by observable market data through correlation or other means for substantially the full term of the asset or liability. |
Fair value measurements on a recurring basis as of | ||||||||||||||||
December 31, 2009 | ||||||||||||||||
DESCRIPTION | Level 1 | Level 2 | Level 3 | TOTAL | ||||||||||||
ASSETS | ||||||||||||||||
Government and private securities | 2,717,267 | 4,454,430 | (*) | — | 7,171,697 | |||||||||||
Other receivables from financial intermediation | ||||||||||||||||
Forward transactions pending settlement | 15,486 | 519,674 | — | 535,160 | ||||||||||||
Unlisted corporate Bonds | — | 72,092 | 8,736 | 80,828 | ||||||||||||
Unlisted certificate of participation in financial trust | — | — | 39,558 | 39,558 | ||||||||||||
Derivative instruments | 5,295 | — | — | 5,295 | ||||||||||||
Other receivables in securities | 5,214 | — | — | 5,214 | ||||||||||||
LIABILITIES | ||||||||||||||||
Other liabilities from financial intermediation | ||||||||||||||||
Forward transactions pending settlement | 1,011,498 | 16,516 | (*) | — | 1,028,014 | |||||||||||
Derivative instruments | — | — | 12,522 | 12,522 |
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Fair value measurements on a recurring basis as of | ||||||||||||||||
December 31, 2008 | ||||||||||||||||
DESCRIPTION | Level 1 | Level 2 | Level 3 | TOTAL | ||||||||||||
ASSETS | ||||||||||||||||
Government and private securities | 1,590,686 | 3,093,907 | (*) | — | 4,684,593 | |||||||||||
Other receivables from financial intermediation | ||||||||||||||||
Forward transactions pending settlement | 52,345 | 1,226 | — | 53,571 | ||||||||||||
Unlisted corporate Bonds | — | 48,696 | — | 48,696 | ||||||||||||
Derivative instruments | — | — | 7,200 | 7,200 | ||||||||||||
Other receivables in securities | 4,411 | — | — | 4,411 | ||||||||||||
LIABILITIES | ||||||||||||||||
Other liabilities from financial intermediation | ||||||||||||||||
Forward transactions pending settlement | 254,905 | 426,390 | (*) | — | 681,295 | |||||||||||
Derivative instruments | 5,859 | — | — | 5,859 |
(*) | Mainly includes instruments issued by Central Bank of Argentina with less than one year maturity. |
Derivatives | ||||||||
2009 | 2008 | |||||||
Beginning balance | 7,200 | 2,446 | ||||||
Total gains or losses (realized/unrealized) | ||||||||
Included in earnings (or changes in net assets) | (19,722 | ) | 4,754 | |||||
Ending balance | (12,522 | ) | 7,200 | |||||
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Corporate Bonds | ||||||||
2009 | 2008 | |||||||
Beginning balance | — | — | ||||||
Total gains or losses (realized/unrealized) Purchases, issuances and settlements | 8,736 | — | ||||||
Ending balance | 8,736 | — | ||||||
Certificate of participation | ||||||||
in financial trust | ||||||||
2009 | 2008 | |||||||
Beginning balance | — | — | ||||||
Total gains or losses (realized/unrealized) Purchases, issuances and settlements | 39,558 | — | ||||||
Ending balance | 39,558 | — | ||||||
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As of December 31, | ||||||||||||||||
2009 | 2008 | |||||||||||||||
Carrying Amount | Estimated Fair Value | Carrying Amount | Estimated Fair Value | |||||||||||||
FINANCIAL ASSETS | ||||||||||||||||
Cash | 5,016,192 | 5,016,192 | 3,523,897 | 3,523,897 | ||||||||||||
Government and private securities | 6,981,144 | 7,171,697 | 4,779,299 | 4,684,593 | ||||||||||||
Loans | 11,096,807 | 10,287,409 | 11,279,958 | 10,510,340 | ||||||||||||
Other receivables from financial intermediation | 2,380,653 | 2,340,263 | 1,454,065 | 1,445,109 | ||||||||||||
Assets subject to financial leases | 246,590 | 223,214 | 355,390 | 312,322 | ||||||||||||
Other receivables | 366,495 | 366,090 | 251,789 | 255,294 | ||||||||||||
26,087,881 | 25,404,865 | 21,644,398 | 20,731,555 | |||||||||||||
FINANCIAL LIABILITIES | ||||||||||||||||
Deposits | 18,592,866 | 18,586,443 | 15,828,357 | 15,809,588 | ||||||||||||
Other liabilities from financial intermediation | 3,338,070 | 3,173,908 | 2,714,944 | 2,174,088 | ||||||||||||
Other Liabilities | 884,082 | 884,082 | 442,702 | 442,702 | ||||||||||||
Subordinated Corporate Bonds | 572,473 | 573,681 | 521,681 | 301,947 | ||||||||||||
23,387,491 | 23,218,114 | 19,507,684 | 18,728,325 | |||||||||||||
35.22. | Joint venture |
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35.23. | Items in process of collection |
35.24. | Acceptances |
35.25. | Variable Interest Entities and other trusts |
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35.26. | New accounting pronouncements (US GAAP) |
a) | Accounting for Transfers of Financial Assets (ASC 860) |
b) | Amendments to Consolidation (ASC 810) |
c) | ASU 2010-06 Fair Value Measurements and Disclosures (ASC 820): Improving Disclosures about Fair Value Measurements |
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