Banco Macro 6K Current report

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 6-K

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16 UNDER THE

SECURITIES EXCHANGE ACT OF 1934

January 27, 2020

Commission File Number: 001-32827

MACRO BANK INC.

(Translation of registrant’s name into English)

Av. Eduardo Madero 1182

Buenos Aires C1106ACY

Tel: 54 11 5222 6500

(Address of registrant’s principal executive offices)

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

Form 20-F

Form 40-F

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

Yes

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

Yes

BANCO MACRO S.A.

Condensed interim financial statements as of September 30, 2019 together with the reports on review of interim financial statements.

CONTENT

Cover Sheet

Condensed consolidated interim statement of financial position

Condensed consolidated interim statement of income

Condensed consolidated interim statement of other comprehensive income

Condensed consolidated interim statement of changes in shareholders’ equity

Condensed consolidated interim statement of cash flows

Notes to the condensed consolidated interim financial statements

Consolidated exhibits

Condensed separate interim statement of financial position

Condensed separate interim statement of income

Condensed separate interim statement of other comprehensive income

Condensed separate interim statement of changes in shareholders’ equity

Condensed separate interim statement of cash flows

Notes to the condensed separate interim financial statements

Separate exhibits

Review report on condensed consolidated interim financial statements

Review report on condensed separate interim financial statements

CONDENSED CONSOLIDATED INTERIM

FINANCIAL STATEMENTS

AS OF SEPTEMBER 30, 2019

CORPORATE NAME:Banco Macro SA

REGISTERED OFFICE:Avenida Eduardo Madero 1182 – Autonomous City of Buenos Aires

CORPORATE PURPOSE AND MAIN ACTIVITY:Commercial bank

CENTRAL BANK OF ARGENTINA:Authorized as “Argentine private bank” under No. 285.

REGISTRATION WITH THE PUBLIC REGISTRY OF COMMERCE:Under No. 1154 - By-laws Book No. 2, Folio 75 dated March 8, 1967

BY-LAWS EXPIRY DATE:March 8, 2066

REGISTRATION WITH THE IGJ (SUPERINTENDENCY OF CORPORATIONS):Under No. 9777 – Corporations Book No. 119 Volume A ofSociedades Anónimas, dated October 8, 1996.

PERSONAL TAX IDENTIFICATION NUMBER:30-50001008-4

REGISTRATION DATES OF AMENDMENTS TO BY-LAWS:

August 18, 1972, August 10, 1973, July 15, 1975, May 30, 1985, September 3, 1992, May 10, 1993, November 8, 1995, October 8, 1996, March 23, 1999, September 6, 1999, June 10, 2003, December 17, 2003, September 14, 2005, February 8, 2006, July 11, 2006, July 14, 2009, November 14, 2012, August 2, 2014, July 15, 2019.

CONDENSED CONSOLIDATED INTERIM STATEMENT OF FINANCIAL POSITION

AS OF SEPTEMBER 30, 2019 AND DECEMBER 31,2018

(Translation of the Financial statements originally issued in Spanish – See Note 39)

(Figures expressed in thousands of Pesos)

Items	Notes		Exhibits	09/30/2019		12/31/2018
ASSETS
Cash and Deposits in Banks					96,608,739		74,766,039
Cash					15,477,789		10,696,465
Central Bank of Argentina					54,967,279		50,212,127
Other Local and Foreign Entities					26,160,071		13,401,648
Other					3,600		455,799
Debt Securities at fair value through profit or loss		36			1,495,749		2,635,247
Derivative Financial Instruments					56,436		17,293
Other financial assets		7	R		4,080,406		2,999,584
Loans and other financing			B, C, D and R		194,353,687		178,874,755
Non financial Public Sector					470,664		1,775,507
Other Financial Entities					2,423,272		5,573,806
Non financial Private Sector and Foreign Residents					191,459,751		171,525,442
Other Debt Securities		36			76,570,080		64,584,759
Financial Assets delivered as guarantee		26			10,710,460		6,756,220
Equity Instruments at fair value through profit or loss		10 and 36			1,512,249		51,518
Investment in associates and joint arrangements		6			135,381		108,823
Property, plant and equipment			F		10,691,005		9,002,694
Intangible Assets			G		2,049,143		1,401,017
Deferred Income Tax Assets		15.b)			2,776,292		46,559
Other Non financial Assets		7			1,176,128		834,069
Non current assets held for sale		10			440,751		804,017
TOTAL ASSETS					402,656,506		342,882,594

Delfín Jorge Ezequiel Carballo

Chairperson

- 1 -

CONDENSED CONSOLIDATED INTERIM STATEMENT OF FINANCIAL POSITION

AS OF SEPTEMBER 30, 2019 AND DECEMBER 31,2018

(Translation of the Financial statements originally issued in Spanish – See Note 39)

(Figures expressed in thousands of Pesos)

Items	Notes		Exhibits	09/30/2019			12/31/2018
LIABILITIES
Deposits			H and I		259,202,432			237,954,419
Non financial Public Sector					20,437,668			19,354,087
Financial Sector					293,027			148,275
Non financial Private Sector and Foreign Residents					238,471,737			218,452,057
Derivative Financial Instruments			I		147,309			1,369
Repo Transactions			I		2,167,021			164,469
Other Financial Liabilities		12	I		16,711,171			15,318,513
Financing received from the Central Bank of Argentina and other financial entities			I		3,344,842			2,998,010
Issued Corporate Bonds		31	I		6,008,238			6,377,311
Current Income Tax Liabilities		15. a)			4,508,114			2,946,479
Subordinated Corporate Bonds		31	I		23,726,491			15,288,390
Provisions		11	J		1,328,977			1,045,894
Deferred Income Tax Liabilities					628			274,671
Other Non financial Liabilities		12			9,135,738			5,875,117
TOTAL LIABILITIES					326,280,961			288,244,642
SHAREHOLDERS’ EQUITY
Capital Stock		23			639,398			669,663
Non capital contributions					12,428,461			12,428,461
Adjustments to Shareholders’ Equity					4,511			4,511
Earnings Reserved					34,837,136			21,995,937
Unappropriated Retained Earnings					(210,927	)		3,264,742
Other Comprehensive Income					1,140,100			543,086
Net Income for the period/ fiscal year					27,534,122			15,729,243
Net Shareholders’ Equity attributable to controlling interest					76,372,801			54,635,643
Net Shareholders’ Equity attributable to non-controlling interests					2,744			2,309
TOTAL SHAREHOLDERS’ EQUITY					76,375,545			54,637,952
TOTAL SHAREHOLDERS’ EQUITY AND LIABILITIES					402,656,506			342,882,594

The notes 1 to 39 to the condensed consolidated interim financial statements and the exhibits B to D, F to J, L, Q and R are an integral part of the condensed consolidated interim financial statements.

Delfín Jorge Ezequiel Carballo

Chairperson

- 2 -

CONDENSED CONSOLIDATED INTERIM STATEMENT OF INCOME

FOR THE THREE AND NINE MONTH PERIODS ENDED SEPTEMBER 30, 2019 AND 2018

(Translation of the Financial statements originally issued in Spanish – See Note 39)

(Figures expressed in thousands of Pesos)

Items	Notes		Exhibits		Quarter ended 09/30/2019			Accumulated from beginning of year up to 09/30/2019			Quarter ended 09/30/2018			Accumulated from beginning of year up to 09/30/2018
Interest income				Q		35,581,948			91,310,849			16,809,037			41,763,336
Interest expense				Q		(15,524,628	)		(41,537,663	)		(6,486,281	)		(14,406,000	)
Net Interest income						20,057,320			49,773,186			10,322,756			27,357,336
Commissions income		16		Q		4,139,835			11,361,166			3,070,356			8,447,401
Commissions expense				Q		(387,097	)		(906,718	)		(201,430	)		(538,625	)
Net Commissions income						3,752,738			10,454,448			2,868,926			7,908,776
Subtotal (Net Interest income +Net Commissions income)						23,810,058			60,227,634			13,191,682			35,266,112
Net Income from measurement of financial instruments at fair value through profit or loss				Q		659,428			2,765,932			498,899			701,792
Loss from sold assets at amortized cost						(188	)		(17,607	)		(3,021	)		(5,891	)
Differences in quoted prices of gold and foreign currency		17				1,496,328			1,778,551			(1,244,443	)		(2,106,131	)
Other operating income		18				1,070,655			5,167,463			1,201,794			2,398,172
Allowance for loan losses						(824,273	)		(3,826,590	)		(732,254	)		(1,870,397	)
Net Operating Income						26,212,008			66,095,383			12,912,657			34,383,657
Employee benefits		19				(4,428,444	)		(12,477,524	)		(2,719,783	)		(7,180,616	)
Administrative expenses		20				(2,902,577	)		(7,299,956	)		(1,775,767	)		(4,727,301	)
Depreciation of Property, Plant and Equipment				F and G		(365,495	)		(972,740	)		(186,517	)		(522,021	)
Other Operating Expenses		21				(6,636,536	)		(13,689,434	)		(2,692,996	)		(7,039,744	)
Operating Income						11,878,956			31,655,729			5,537,594			14,913,975
Income from associates and joint arrangements		6				16,597			655,792			12,368			232,865
Income before tax on continuing operations						11,895,553			32,311,521			5,549,962			15,146,840
Income tax on continuing operations		15.b)				1,263,085			(4,776,706	)		(1,717,721	)		(4,613,300	)
Net Income from continuing operations						13,158,638			27,534,815			3,832,241			10,533,540
Net Income for the period						13,158,638			27,534,815			3,832,241			10,533,540
Net Income for the period attributable to controlling interest						13,158,383			27,534,122			3,828,147			10,485,979
Net Income for the period attributable to non-controlling interest						255			693			4,094			47,561

Delfín Jorge Ezequiel Carballo

Chairperson

- 3 -

CONSOLIDATED EARNINGS PER SHARE

FOR THE THREE AND NINE MONTH PERIODS ENDED SEPTEMBER 30, 2019 AND 2018

(Translation of Financial statements originally issued in Spanish – See Note 39)

(Figures expressed in thousands of Pesos)

Items	Quarter ended 09/30/2019		Accumulated from beginning of year up to 09/30/2019		Quarter ended 09/30/2018		Accumulated from beginning of year up to 09/30/2018
Net Profit attributable to Parent’s shareholders		13,158,383		27,534,122		3,828,147		10,485,979
PLUS: Potential diluted earnings per common share
Net Profit attributable to Parent’s shareholders adjusted as per diluted earnings		13,158,383		27,534,122		3,828,147		10,485,979
Weighted average of outstanding common shares for the period		639,397		639,403		662,173		667,139
PLUS: Weighted average of the number of additional common shares with dilution effects
Weighted average of outstanding common shares for the period adjusted as per dilution effect		639,397		639,403		662,173		667,139
Basic earnings per share		20.5794		43.0622		5.7812		15.7178

Delfín Jorge Ezequiel Carballo

Chairperson

- 4 -

CONDENSED CONSOLIDATED INTERIM STATEMENT OF OTHER COMPREHENSIVE INCOME
FOR THE THREE AND NINE MONTH PERIODS ENDED SEPTEMBER 30, 2019 AND 2018
(Translation of the Financial statements originally issued in Spanish – See Note 39)
(Figures expressed in thousands of Pesos)

Items	Notes	Exhibits	Quarter ended 09/30/2019		Accumulated from beginning of year up to 09/30/2019		Quarter ended 09/30/2018		Accumulated from beginning of year up to 09/30/2018
Net Income for the period			13,158,638		27,534,815		3,832,241		10,533,540
Items of Other Comprehensive Income that will be reclassified to profit or loss
Foreign currency translation differences in financial statements conversion			532,238		708,687		453,841		851,955
Foreign currency translation differences for the period			532,238		708,687		453,841		851,955
Profit or losses for financial instruments measured at fair value through other comprehensive income (FVOCI) (IFRS 9(4.1.2)(a))			(51,049	)	(111,681	)	(140,417	)	(237,241	)
Profit or losses for the period from financial instruments at fair value through other comprehensive income (FVOCI)		Q	47,368		(35,403	)	(195,864	)	(319,339	)
Income tax	15.b)		(98,417	)	(76,278	)	55,447		82,098
Total Other Comprehensive Income that is subsequently reclassified to profit or loss			481,189		597,006		313,424		614,714
Total Other Comprehensive Income			481,189		597,006		313,424		614,714
Total Comprehensive Income for the period			13,639,827		28,131,821		4,145,665		11,148,254
Total Comprehensive Income attributable to controlling interest			13,639,575		28,131,136		4,141,573		11,100,717
Total Comprehensive Income attributable to non controlling interest			252		685		4,092		47,537

Delfín Jorge Ezequiel Carballo

Chairperson

- 5 -

CONDENSED CONSOLIDATED INTERIM STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY

FOR THE NINE MONTH PERIOD ENDED SEPTEMBER 30, 2019

(Translation of Financial statements originally issued in Spanish – See Note 39)

(Figures expressed in thousands of Pesos)

			Capital stock						Non capital contributions				Other comprehensive income					Earnings Reserved
Changes	Notes		Outstanding shares			In portfolio			Additional paid-in capital		Adjustments to Shareholders’ Equity		Accumulative foreign currency translation difference in financial statements conversion		Other			Legal		Other			Unappropriated Retained Earnings			Total Controlling Interests			Total Non Controlling Interests			Total Equity
Amount at the beginning of the fiscal year				640,715			28,948			12,428,461		4,511		869,961		(326,875	)		6,872,687		15,123,250			18,993,985			54,635,643			2,309			54,637,952
Total comprehensive income for the period
- Net income for the period																								27,534,122			27,534,122			693			27,534,815
- Other comprehensive income for the period														708,687		(111,673	)										597,014			(8	)		597,006
Own shares in portfolio		23		(1,317	)		1,317
Distribution of unappropied retained earnings as approved by Shareholders´ Meeting held on April 30, 2019
Legal Reserve																			3,145,849					(3,145,849	)
Normative Reserve																					3,475,669			(3,475,669	)
Cash Dividends																					(6,393,978	)					(6,393,978	)					(6,393,978	)
Other																					12,583,394			(12,583,394	)
Decrease of own shares in treasury		23					(30,265	)													30,265
Other changes																														(250	)		(250	)
Amount at the end of the period				639,398						12,428,461		4,511		1,578,648		(438,548	)		10,018,536		24,818,600			27,323,195			76,372,801			2,744			76,375,545

CONDENSED CONSOLIDATED INTERIM STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY

FOR THE NINE MONTH PERIOD ENDED SEPTEMBER 30, 2018

(Translation of Financial statements originally issued in Spanish – See Note 39)

(Figures expressed in thousands of Pesos)

			Capital stock					Non capital contributions				Other comprehensive income					Earnings Reserved
Changes	Notes		Outstanding shares			In portfolio		Additional paid-in capital		Adjustments to Shareholders Equity		Accumulative foreign currency translation difference in financial statements conversion		Other			Legal		Other			Unappropriated Retained Earnings			Total Controlling Interests			Total Non Controlling Interests			Total Equity
Amount at the beginning of the fiscal year				669,663					12,428,461		4,511		137,148		67,412			4,994,932		15,368,454			12,864,442			46,535,023			200,842			46,735,865
Total comprehensive income for the period
- Net income for the period																							10,485,979			10,485,979			47,561			10,533,540
- Other comprehensive income for the period													851,955		(237,217	)										614,738			(24	)		614,714
Distribution of unappropied retained earnings as approved by Shareholders´ Meeting held on April 27, 2018
Legal Reserve																		1,877,755					(1,877,755	)
Cash Dividends																				(3,348,315	)					(3,348,315	)		(26	)		(3,348,341	)
Other																				7,511,018			(7,511,018	)
Other changes																							(210,927	)		(210,927	)		(245,830	)		(456,757	)
Own shares in treasury		23		(21,463	)		21,463													(3,113,925	)					(3,113,925	)					(3,113,925	)
Amount at the end of the period				648,200			21,463		12,428,461		4,511		989,103		(169,805	)		6,872,687		16,417,232			13,750,721			50,962,573			2,523			50,965,096

Delfín Jorge Ezequiel Carballo

Chairperson

- 6 -

CONDENSED CONSOLIDATED INTERIM STATEMENT OF CASH FLOWS
FOR THE NINE MONTH PERIODS ENDED SEPTEMBER 30, 2019 AND 2018
(Translation of the Financial statements originally issued in Spanish – See Note 39)
(Figures expressed in thousands of Pesos)

Items	Notes	09/30/2019		09/30/2018
CASH FLOWS FROM OPERATING ACTIVITIES
Income for the period before Income Tax		32,311,521		15,146,840
Adjustments to obtain cash flows from operating activities:
Amortization and depreciation		972,740		522,021
Allowance for loan losses		3,826,590		1,870,397
Difference in quoted prices of foreign currency		(20,520,646	)	(11,037,396	)
Other adjustments		4,118,989		1,271,040
Net increase/ (decrease) from operating assets:
Debt Securities at fair value though profit and loss		1,139,498		(693,901	)
Derivative financial instruments		(39,143	)	(63,220	)
Repo transactions		-		1,419,808
Loans and other financing
Non-financial public sector		1,304,843		(58,882	)
Other financial entities		3,150,534		(1,407,581	)
Non-financial private sector and foreign residents		(23,662,149	)	(41,922,979	)
Other debt securities		(14,176,862	)	4,627,519
Financial assets delivered as guarantee		(3,954,240	)	1,397,175	��
Equity instruments at fair value through profit or loss		(40,035	)	230,795
Other assets		(496,417	)	(469,847	)
Net increase/ (decrease) from operating liabilities:
Deposits
Non-financial public sector		1,083,581		7,183,053
Financial sector		144,752		68,506
Non-financial private sector and foreign residents		20,019,680		61,187,870
Liabilities at fair value through profit or loss		-		(6,217	)
Derivative financial instruments		145,940		188,600
Repo transactions		2,002,552		(2,688,093	)
Other liabilities		4,283,406		5,067,133
Payments for Income Tax		(6,183,314	)	(5,792,617	)
TOTAL CASH FROM OPERATING ACTIVITIES (A)		5,431,820		36,040,024

Delfín Jorge Ezequiel Carballo

Chairperson

- 7 -

CONDENSED CONSOLIDATED INTERIM STATEMENT OF CASH FLOWS

FOR THE NINE MONTH PERIODS ENDED SEPTEMBER 30, 2019 AND 2018

(Translation of Financial statements originally issued in Spanish – See Note 39)

(Figures expressed in thousands of Pesos)

Items	Notes		09/30/2019			09/30/2018
CASH FLOWS FROM INVESTING ACTIVITIES
Payments:
Acquisition of PPE, intangible assets and other assets				(2,760,595	)		(1,296,094	)
TOTAL CASH USED IN INVESTING ACTIVITIES (B)				(2,760,595	)		(1,296,094	)
CASH FLOWS FROM FINANCING ACTIVITIES
Payments:
Dividends				(6,394,228	)		(3,348,341	)
Acquisition or redemption of equity instruments				(199,843	)		(3,113,925	)
Non subordinated corporate bonds				(1,769,211	)		(2,166,287	)
Financing from local financial entities				-			(231,102	)
Corporate bonds				(606,105	)		(292,893	)
Changes in equity instruments of subsidiaries that do not lead to the loss of control							(456,757	)
Other payments related to financing activities				(106,771	)		-
Proceeds:
Non subordinated corporate bonds				-			3,206,999
Central Bank of Argentina				6,122			10,604
Financing to local financial entities				126,283			-
TOTAL CASH USED IN FINANCING ACTIVITIES (C)				(8,943,753	)		(6,391,702	)
EFFECT OF EXCHANGE RATE FLUCTUATIONS (D)				28,587,997			19,995,433
TOTAL CHANGES IN CASH FLOWS
NET INCREASE IN CASH AND CASH EQUIVALENTS (A+B+C+D)				22,315,469			48,347,661
CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE FISCAL YEAR		22		130,629,755			55,685,525
CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD		22		152,945,224			104,033,186

Delfín Jorge Ezequiel Carballo

Chairperson

- 8 -

NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF SEPTEMBER 30, 2019

(Translation of Financial statements originally issued in Spanish – See Note 39)

(Figures expressed in thousands of Pesos)

CORPORATE INFORMATION

Banco Macro SA (hereinafter, the Bank), is a stock corporation (sociedad anónima), organized in the Republic of Argentina that offers traditional banking products and services to companies, including those companies operating in regional economies, as well as to individuals, thus strengthening its goal to be a multiservice bank. In addition, through its subsidiaries, the Bank performs transactions as a trustee agent, manager and administrator of mutual funds and renders stock exchange services.

Macro Compañía Financiera SA 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 SA. Subsequently, as a result of the merger process with other entities, it adopted other names (among them, Banco Macro Bansud SA) and since August 2006, Banco Macro SA.

The Bank’s shares have been publicly listed on Bolsas y Mercados Argentinos (BYMA) since November 1994; and as from March 24, 2006 they are listed on the New York Stock Exchange (NYSE). Additionally, on October 15, 2015, they were authorized to be listed on the Mercado Abierto Electrónico SA (MAE).

Since 1994, Banco Macro SA’s market strategy was mainly focused on the regional areas outside the City of Buenos Aires. Following this strategy, in 1996, Banco Macro SA started the process to acquire entities and assets and liabilities during the privatization of provincial and other banks.

On May 21, 2019, the Bank acquired 100% of Argenpay SAU for an amount of 100 conformed by 100,000 common, registered shares, with a face value of Ps. 1 each one and entitled to one vote. The Entity’s purpose is the development of its own network or the incorporation into other networks so that it can operate with individuals or companies, in-person or remotely, by using information and communication technologies, grant, offer or accept electronic paymentsonlineoroffline, digital and virtual wallets and electronic commerce in general. During the fourth quarter this subsidiary will start to develop its principal activities.

On November 8, 2019, the Board of Directors approved the issuance of these condensed consolidated interim financial statements.

OPERATIONS OF THE BANK

2.1.

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 five-year term since January 1, 1996, as the Provincial Government’s exclusive financial agent, as well as revenue collection and obligation payment agent.

On November 25, 1999, and December 28, 2006, extensions to such agreement were agreed upon, making it currently effective through December 31, 2029.

As of September 30, 2019 and December 31, 2018, the deposits held by the Misiones Provincial Government with the Bank amounted to 8,132,390 and 5,540,994 (including 590,114 and 430,545 related to court deposits), respectively.

2.2.

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 ten-year term since March 1, 1996, as the Provincial Government’s exclusive financial agent, as well as revenue collection and obligation payment agent.

On February 22, 2005, and August 22, 2014, extensions to such agreements were agreed upon, making it currently effective through February 28, 2026.

- 9 -

NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF SEPTEMBER 30, 2019

(Translation of Financial statements originally issued in Spanish – See Note 39)

(Figures expressed in thousands of Pesos)

As of September 30, 2019 and December 31, 2018, the deposits held by the Salta Provincial Government with the Bank amounted to 4,196,679 and 2,630,532 (including 851,204 and 644,863 related to court deposits), respectively.

2.3.

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.

On April 29, 2005 and July 8, 2014, extensions to such agreement were agreed upon, making it currently effective through September 30, 2024.

As of September 30, 2019 and December 31, 2018, the deposits held by the Jujuy Provincial Government with the Bank amounted to 1,587,938 and 1,387,236 (including 628,841 and 436,972 related to court deposits), respectively.

2.4.

Banco del Tucumán SA

Banco del Tucumán SA, a Bank’s subsidiary, acts as an exclusive financial agent and as revenue collection and obligation payment agent of the Tucumán Provincial Government, the Municipality of San Miguel de Tucumán and the Municipality of Yerba Buena. The services agreements with the Provincial and Municipalities Governments are effective through years 2031, 2023 and 2020, respectively.

On July 4, 2018 the legislative body of the province of Tucumán enacted, into law a bill issued by the provincial executive, authorizing the sale of the shares held by such province in Banco de Tucumán SA to Banco Macro SA as well as the continuity as a provincial finance agent for an additional period of ten years from the expiration of the contract, and if applicable, the possibility of merging both entities.

On August 10, 2018, the province of Tucumán transferred to Banco Macro SA, 43,960 Class B common registered nonendorsable shares, with a face value of Ps. 100 each one and entitled to one vote, which is equivalent to 10% of its common stock and votes. For this transaction, the Bank paid 456,462. In addition, the Bank acquired from an individual shareholder 59 shares for an amount of 295.

This transaction was registered in the Bank’s shareholders´ equity, derecognizing, at the carrying amount, the non-controlling interest. The difference between the adjustment of the controlling and non-controlling interests and the fair value of the consideration paid was registered in retained earnings. In the condensed separate interim financial statements this transaction was registered by the acquisition method (see additionally note 2 to the condensed separate interim financial statements).

On April 30, and July 19, 2019, the Shareholders' Meeting of Banco Macro SA and the Shareholders' Meeting of Banco del Tucumán SA, respectively, decided, among other issues, to approve a preliminary merger agreement, the special consolidated financial statement of merger as of December 31, 2018, the exchange relationship of shares, the legal feasibility Report and technical, economic and financial feasibility Report of the merger between Banco Macro SA and Banco del Tucumán SA - Consolidation of technical relationships regarding liquidity and solvency.

The exchange ratio has been agreed at 0.65258 ordinary shares of Banco Macro SA for each face value $ 1 of common share of Banco del Tucumán SA. Therefore, the minority shareholders of Banco del Tucumán SA will be entitled to receive at 0.65258 common shares of Banco Macro SA, for each face value $ 1 of ordinary shares they hold in the capital of Banco del Tucumán SA. Consequently, Banco Macro will issue 15,662 Class B common, registered shares, with a face value of Ps. 1 each one and entitled to one vote, to be delivered to minority Shareholders’ of Banco del Tucumán SA.

On August 15, 2019, the Board of the BCRA through Resolution No. 179, authorized the merger of Banco del Tucuman SA by Banco Macro SA. On September 25, 2019, Argentine Securities and Exchange Commission (CNV, for its acronym in Spanish), authorized the merger which was registered at the Public Registry of Commerce on September 30, 2019.

- 10 -

NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF SEPTEMBER 30, 2019

(Translation of Financial statements originally issued in Spanish – See Note 39)

(Figures expressed in thousands of Pesos)

Through Communiqué “C” 84993, the Central Bank informed that according to the authorization gave in due time, on October 15, 2019 Banco Macro SA performed the merger with Banco del Tucumán SA. Additionally, since that date, the authorization of Banco del Tucumán SA to operate as a commercial bank was revoked and its buildings were incorporated to Banco Macro SA as brands.

As of September 30, 2019 and December 31, 2018, the deposits held by the Tucumán Provincial Government, the Municipality of San Miguel de Tucumán and the Municipality of Yerba Buena with Banco del Tucumán SA amounted to 2,755,561 and 6,047,312 (including 2,416,852 and 1,890,398 related to court deposits), respectively.

BASIS FOR THE PREPARATION OF THESE FINANCIAL STATEMENTS AND APPLICABLE ACCOUNTING STANDARDS

Presentation basis

Applicable Accounting Standards

On February 12, 2014, through Communiqué “A” 5541, the Central Bank of Argentina (BCRA, for its acronym in Spanish) established the general guidelines towards conversion to the IFRS issued by the International Accounting Standards Board (IASB) for preparing financial statements of the entities under its supervision, for the annual fiscal years beginning on January 1, 2018, as well as those of interim-periods.

Additionally, through Communiqués “A” 6114, the BCRA set specific guidelines within the scope of such convergence process, among which it defined (i) the transitory exception to the application of section 5.5 “Impairment” of the IFRS 9 “Financial Instruments” (sections B5.5.1 to B5.5.55) up to the fiscal years beginning as of January 1, 2020, considering Communiqué “A” 6778; and (ii) in order to calculate the effective interest rate of assets and liabilities so requiring it for the measurement thereof, pursuant to IFRS 9, up to December 31, 2019, the Bank may transitorily make a global estimate of the calculation of the effective interest rate on a group of financial assets or liabilities with similar characteristics which shall be applied such effective interest rate. If section 5.5 “Impairment”, mentioned in (i) above had applied, according to a global estimation performed by the Bank, as of September 30, 2019 and December 31, 2018, the shareholders’ equity would have increased by 1,536,828 and 280,978, respectively. The figures stated as of September 30, 2019 includes 1,476,799 generated by the allowance mentioned in note 10.

As of September 30, 2019 the conditions to apply inflation adjustment in the condensed consolidated interim financial statement for the nine-month period ended on that date, as established by IAS 29 “Financial Reporting in Hyperinflationary Economy” were met. However, for the reasons described in section “measuring unit” of this note, financial institutions, transitorily, cannot apply the above-mentioned standard.

These condensed consolidated interim financial statements of the Bank were prepared pursuant with Conceptual Framework as established by BCRA based on IFRS (Communiqué “A” 6114 and supplementary rules of the BCRA), with the exceptions described in the preceding paragraphs. Taking into account these exceptions, the Conceptual Framework comprises the Standards and Interpretations adopted by the IASB and includes:

the IFRS;

the International Accounting Standards (IAS); and

the interpretations developed by the IFRS Interpretations Committee (IFRIC) or former IFRIC (SIC).

Generally, the BCRA does not allow the anticipated application of any IFRS, unless otherwise expressly stated.

Basis for the preparation and consolidation

These condensed consolidated interim financial statements for the nine-month period ended on September 30, 2019, have been prepared in accordance with the framework set forth by the BCRA as mentioned in the previous section “Applicable accounting standards” which, particularly for condensed consolidated interim financial statements, is based on IAS 34 “Interim Financial Reporting”.

For the preparation of these condensed consolidated interim financial statements, in addition to section “new standards adopted” of this note, the Bank has applied the basis for the preparation and consolidation, the accounting policies and the material accounting judgements, estimates and assumptions described in the consolidated financial statements for the fiscal year ended on December 31, 2018, already issued.

- 11 -

NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF SEPTEMBER 30, 2019

(Translation of Financial statements originally issued in Spanish – See Note 39)

(Figures expressed in thousands of Pesos)

These condensed consolidated interim financial statements include all the necessary information for an appropriate understanding, by the users thereof, of the basis for the preparation and disclosure used therein, as well as the relevant events and transactions occurred after the issuance of the last annual consolidated financial statements for the fiscal year ended on December 31, 2018, already issued. Nevertheless, the present condensed consolidated interim financial statements do not include all the information or all the disclosures required for the annual consolidated financial statements prepared in accordance with the IAS 1 “Presentation of Financial Statements”. Therefore, these condensed consolidated interim financial statements must be read together with the annual consolidated financial statements for the fiscal year ended December 31, 2018, already issued.

As of September 30, 2019 and December 31, 2018, the Bank has consolidated its financial statements with the financial statements of the following companies:

Subsidiaries	Principal Place of Business	Country	Main Activity
Banco del Tucumán SA	San Martín 721 – San Miguel de Tucumán – Province of Tucumán	Argentina	Banking entity

Macro Securities SA (a) and (b)	Av. Eduardo Madero 1182 – Autonomous City of Buenos Aires	Argentina	Stock exchange services

Macro Fiducia SA	Av. Leandro N. Alem 1110– 1st floor. Autonomous City of Buenos Aires	Argentina	Services

Macro Fondos SGFCISA	Av. Eduardo Madero 1182– 24th floor, Office B–. Autonomous City of Buenos Aires	Argentina	Management and administration of mutual funds

Macro Bank Limited (c)	Caves Village, Building 8 Office 1 – West Bay St., Nassau	Bahamas	Banking entity

Argenpay SAU (d)	Av. Eduardo Madero 1182 –. Autonomous City of Buenos Aires	Argentina	Electronic payments services

(a)

Consolidated with Macro Fondos SGFCI SA (80.90% equity interest and voting rights).

(b)

The indirect interest of Banco Macro SA comes from Macro Fiducia SA.

(d) Consolidated with the Bank since May 2019, as the equity interest was acquired on such month.

The table below shows the Bank’s equity interest and voting rights in the companies it consolidates as of September 30, 2019 and December 31, 2018:

	Shares			Bank’s interest						Noncontrolling interest
Subsidiaries	Type	Number		Total capital stock			Voting rights			Total capital stock			Voting rights
Banco del Tucumán SA	Common		439,360		99.945	%		99.945	%		0.055	%		0.055	%
Macro Securities SA	Common		12,776,680		99.921	%		99.932	%		0.079	%		0.068	%
Macro Fiducia SA	Common		6,475,143		98.605	%		98.605	%		1.395	%		1.395	%
Macro Fondos SGFCISA	Common		327,183		99.936	%		100.00	%		0.064	%
Macro Bank Limited	Common		39,816,899		99.999	%		100.00	%		0.001	%
Argenpay SAU (a)	Common		100,000		100.00	%		100.00	%

(a)

Equity interest acquired on May 21, 2019.

- 12 -

NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF SEPTEMBER 30, 2019

(Translation of Financial statements originally issued in Spanish – See Note 39)

(Figures expressed in thousands of Pesos)

Total assets, liabilities and net equity of the Bank and each of its subsidiaries as of September 30, 2019 and December 31, 2018, are as follows:

As of 09/30/2019	Banco Macro SA		Banco del Tucumán SA		Other Subsidiaries		Eliminations			Consolidated
Assets		382,651,433		20,521,333		6,195,784		(6,712,044	)		402,656,506
Liabilities		306,067,705		17,474,154		3,400,487		(661,385	)		326,280,961
Equity attributable to the owners of the Bank											76,372,801
Equity attributable to non-controlling interests											2,744

As of 12/31/2018	Banco Macro SA		Banco del Tucumán SA		Other Subsidiaries		Eliminations			Consolidated
Assets		323,268,073		21,329,508		4,081,903		(5,796,890	)		342,882,594
Liabilities		268,421,503		18,883,250		1,739,951		(800,062	)		288,244,642
Equity attributable to the owners of the Bank											54,635,643
Equity attributable to non-controlling interests											2,309

Transcription in the Books of Accounts

As of the date of these condensed consolidated interim financial statements, the same are in the process of being transcribed in the Books of Accounts of Banco Macro SA.

Figures expressed in thousands of pesos

These condensed consolidated interim financial statements disclose figures expressed in thousands of Argentine pesos and are rounded up to the nearest amount in thousands of pesos, unless otherwise expressly stated.

Comparative information

The present condensed consolidated interim statement of financial position as of September 30, 2019, is presented comparatively with year-end data of the immediately preceding fiscal year, while the statement of income and the statement of other comprehensive income for the three-month and nine-month periods ended September 30, 2019, and the statement of changes in shareholders’ equity and the statement of cash flows and cash equivalents for the nine-month period ended September 30, 2019, are presented comparatively with data as of the same period of the immediately preceding fiscal year.

��

Measuring unit

IFRS require that the financial statements of an entity whose functional currency is the currency of a hyperinflationary economy be restated in terms of measuring unit current at the end of the reporting period. To achieve consistency in identifying an economic environment of that nature, IAS 29 establishes (i) certain qualitative indicators, not limited to, consisting of analyzing the general population behavior, prices, interest rates and wages with changes to a price index and the loss of purchasing power, and (ii) a quantitative indicator which is the most common in practice, consisting of a three-year cumulative inflation rate of 100% or above. Whilst in the recent years there was an important increase in the general level of prices, the three-year cumulative inflation had maintained in Argentina below 100%. However, due to miscellaneous macroeconomic factors the three-year inflation rate exceeds that figure, and, also the Argentine government goals and other available estimates indicate that this trend will not be reversed in the short term.

- 13 -

NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF SEPTEMBER 30, 2019

(Translation of Financial statements originally issued in Spanish – See Note 39)

(Figures expressed in thousands of Pesos)

Consequently, the Argentine economy is currently considered hyperinflationary under IAS 29 and the Argentine financial entities that are required to apply the IFRSs adopted by the BCRA through Communiqué “A” 6114 and the functional currency of which is the Argentine peso should restate their financial statements. Such restatement should be applied as if the economy had always been hyperinflationary, using a general price index that reflects changes in general purchasing power. To apply the restatement, a series of indexes will be used, as prepared and published on a monthly basis by the Argentine Federation of Professionals Councils in Economic Sciences (FACPCE, for its acronym in Spanish), which combines consumer price index (CPI) on a monthly basis published by the Argentine Institute of Statistics and Censuses (INDEC, for its acronym in Spanish) since January 2017 (baseline month: December 2016) with the wholesale prices indexes published by the INDEC until that date. For the months of November and December 2015, for which the INDEC did not publish the wholesale price index (WPI) variation, the CPI variation for the CABA is used.

Considering the abovementioned indexes, the inflation rate was 37.70% and 32.41% for the nine-month periods ended on September 30, 2019 and 2018, respectively, and 47.64% for the fiscal year ended on December 31, 2018.

Notwithstanding the above, as established by BCRA Communiqué “A” 6651, considering in addition Communiqué “A” 6778, financial institutions shall start the inflation adjustment on its financial statements according to IAS 29, for the fiscal years beginning on January 1, 2020.

The nonrecognition of changes in the general purchasing power under hyperinflationary conditions, may distort accounting information and, therefore, this situation should be taken into account in the interpretation of the Bank’s information on these condensed consolidated interim financial statements over financial position, the result of its operations and its cash flows.

Below there is a description of the main impacts if IAS 29 were to be applied:

(a)

Financial statements shall be restated considering the changes in the general purchasing power of the currency to ensure that they are stated in the current measuring unit at end of the reporting period.

(b)

To sum up, the restating mechanism provided by IAS 29 is as follows:

(i)

Monetary items (the ones that are already stated in terms of the current measuring unit) are not restated because they are already expressed in terms of the monetary unit current at the end of the reporting period. In an inflationary period, an entity holding monetary assets generates purchasing power loss and holding monetary liabilities generates purchasing power gain, provided that the assets and liabilities are not linked to an adjustment mechanism that offsets, in some extend such effects. The net gain or loss on a monetary basis shall be included in profit or loss for the period.

(ii)

Assets and liabilities subject to adjustments based on specific agreements will be adjusted in accordance with such agreements.

(iii)

Nonmonetary items stated at current cost at the end of the reporting period, are not restated for presentation purposes in the statement of financial position, but the adjustment process must be completed to determine, in terms of constant measurement unit, the income or loss produced by holding these nonmonetary items.

(iv)

Nonmonetary items carried at historical cost or at current cost at some earlier date before the reporting date, shall be restated by an index that reflects the general level of price variation from the acquisition or revaluation date to the closing date, proceeding then to compare the restated amounts of those assets with their recoverable amounts. Income or loss for the period related to depreciation of property, plant and equipment and amortization of intangible assets and other nonmonetary cost shall be determined over the new restated amounts.

(v)

When an entity capitalizes borrowing cost in the nonmonetary assets, the part of the borrowing cost that compensates for the inflation during the same period will not be capitalized.

(vi)

The restatement of nonmonetary assets in terms of a current measurement unit at the end of the reporting period, without an equivalent adjustment for tax purposes generates a taxable temporary difference and a deferred income tax liability is recognized and the contra account is recognized as profit or loss for the period. When, beyond the restatement, there is a revaluation of nonmonetary assets, the deferred tax related to the restatement is recognized in profit or loss for the period and deferred tax related with the revaluation is recognized in other comprehensive income for the period.

- 14 -

NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF SEPTEMBER 30, 2019

(Translation of Financial statements originally issued in Spanish – See Note 39)

(Figures expressed in thousands of Pesos)

(vii)

Income and expenses are restated from the date the items were recorded, except for those income or loss items that reflect or include, in their determination, the consumption of assets measured at the currency purchasing power from a date prior to that when the consumption was recorded, which is restated using as a basis the acquisition date of the assets related to the item, and except for income or losses arising from comparing the two measurements at currency purchasing power of different dates, for which it requires to identify the compared amounts, to restate them separately and to repeat the comparison, with the restated amounts.

(viii)

At the beginning of the first period of application of the restatement of financial statements in constant currency, the components of equity, except for the retained earnings, are restated according IAS 29, and the retained earning amount is determinated as a difference, once the equity items were restated.

If the Bank, according to a global estimation, had applied IAS 29 the Shareholders’ equity as of September 30, 2019 and December 31, 2018 would have increased by 12,428,326 and 29,233,222, respectively, including the effects for the application of section 5.5. “Impairment” of the IFRS 9 abovementioned. On the other hand, the comprehensive income for the nine-month period would have decreased by 15,584,652.

New standards adopted

For the fiscal year beginning on January 1, 2019, the following IFRS amendments and interpretation (hereinafter, “IFRIC”) are applicable and they did not have a material impact over these condensed consolidated interim financial statements, as a whole.

IFRS 16 “Leases”

IFRS 16 replaced IAS 17 “Leases” and sets out the principles for the recognition, measurement, presentation and disclosure of leases, introducing significant changes when the Bank acts as lessee. In cases when the Bank acts as a lessor, no significant changes were generated with respect to the preceding IAS.

When the Bank acts as a lessee, the lease contracts (and sub lease) are recognized under a single accounting model which eliminates the dual accounting method that distinguishes between operating leases and finance leases and implies the recognition of an asset for the right of use of the leased asset and a liability that represents the obligation to make future payments for the lease.

Additionally, on a separate basis, interest expenses on the lease liabilities and depreciation charges for the right of use of the asset are recognized.

The Bank adopted IFRS 16 under the modified retrospective approach from January 1, 2019, as the date of initial application.

The effect of adoption of IFRS 16 as of January 1, 2019 was an increase of the Bank’s assets and liabilities for the following amounts:

Assets
Right-of-use assets	401,037
Liabilities
Finance lease payable	401,037

The weighted average of the incremental borrowing rate applied, at the transition date, to lease liabilities was 45.98% for leases in pesos and 4.63% for leases in US Dollars.

Nature of the effect of adoption of IFRS 16

Before the adoption of IFRS 16, the Bank classified its leases (as lessee) at the inception date as either a finance lease or an operating lease. The Bank has neither acted nor acts as a leese in agreements classified as finance lease. In an operating lease, the leased property was not capitalized and the lease payments were recognized as rent expense in profit or loss on a straight-line basis over the lease term.

- 15 -

NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF SEPTEMBER 30, 2019

(Translation of Financial statements originally issued in Spanish – See Note 39)

(Figures expressed in thousands of Pesos)

Since the adoption of IFRS 16, the Bank has applied a single accounting model for the recognition and measurement of all its leases. Additionally, the Bank applied the following practical expedients established by the standard:

· Used a single discount rate to a portfolio of leases with reasonably similar characteristics.

· Applied the short-term leases exemptions to leases with lease term that ends within 12 months at the date of initial application.

· Excluded the initial direct costs from the measurement of the right-of-use asset at the date of initial application.

New accounting policies

Set out below are the new accounting policies of the Bank upon adoption of IFRS 16, which have been applied from the date of initial application:

· Right-of-use assets

The Bank recognizes right-of-use assets at the commencement date of the lease. Right-of-use assets are measured at cost, less any accumulated depreciation and impairment losses, and adjusted for any remeasurement of lease liabilities. The cost of right-of-use assets includes the amount of lease liabilities recognized, initial direct costs incurred, and lease payments made at or before the commencement date less any lease incentives received. The right of use assets are depreciated on a straight-line basis over the shorter of its estimated useful life and the lease term. Right-of-use assets are subject to impairment.

· Lease liabilities

At the commencement date of the lease, the Bank recognizes lease liabilities measured at the present value of lease payments to be made over the lease term. The lease payments include fixed payments less any lease incentives receivable, variable lease payments that depend on an index or a rate, and amounts expected to be paid under residual value guarantees. The lease payments also include the exercise price of a purchase option reasonably certain to be exercised by the Bank and payments of penalties for terminating a lease, if the lease term reflects the Bank exercising the option to terminate. The variable lease payments that do not depend on an index or a rate are recognized as expense in the period on which the event or condition that triggers the payment occurs.

In calculating the present value of lease payments, the Bank uses the incremental borrowing rate at the lease commencement date if the interest rate implicit in the lease is not readily determinable. After the commencement date, the amount of lease liabilities is increased to reflect the accretion of interest and reduced for the lease payments made. In addition, the carrying amount of lease liabilities is remeasured if there is a modification, a change in the lease term, a change in the in-substance fixed lease payments or a change in the assessment to purchase the underlying asset.

Amounts recognized in the statement of financial position and in the statement of income

As of September 30, 2019, the carrying amount of assets recognized for the right-of-use assets identified in the lease contracts, depreciation expense for the period and the additions to right-of-use assets are disclosed in Exhibit F to these condensed consolidated interim financial statements. Additionally, the short term leases recognized as rent expense for the period amounted to 73,122.

On the other hand, the carrying amount of liabilities generated by lease contracts as of September 30, 2019, amounted to 940,715 and were recorded in the item “Other financial liabilities” (see additionally note 12). The accrued interests of such liabilities for the nine-month period ended on September 30, 2019, amounted to 62,700 and are recognized in the Item “Other operating expenses” (see additionally note 21).

- 16 -

NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF SEPTEMBER 30, 2019

(Translation of Financial statements originally issued in Spanish – See Note 39)

(Figures expressed in thousands of Pesos)

IFRIC 23 “Uncertainty over income tax treatment”

This interpretation clarifies how to apply the recognition and measurement requirements in IAS 12 “Income tax”. This interpretation addresses specifically the following:

· whether an entity considers uncertain tax treatments separately;

· the assumptions an entity makes about the examination of tax treatments by taxation authorities;

· how an entity determines taxable profit (tax loss), tax bases, unused tax losses, unused tax credits and tax rates; and

· how an entity considers changes in facts and circumstances.

This interpretation did not have a material impact on these condensed consolidated interim financial statements since, currently, there are not material uncertainties over income tax treatments.

New pronouncements

Pursuant to Communiqué “A” 6114 of the BCRA, as new IFRS are approved and existing IFRS are amended or revoked and, once these changes are approved through the notices of approval issued by FACPCA, the BCRA shall issue a statement on the approval thereof for financial entities. Generally, financial institutions shall not apply any IFRS in advance, except as specifically authorized at the time of the adoption thereof. In this case, the Bank shall adopt the following standards:

Amendments to the Conceptual Framework for Financial Reporting: the IASB issued the Conceptual Framework in March 2018. The Conceptual Framework includes some new concepts, provides updated definitions and recognition criteria for assets and liabilities and clarifies some important concepts. The changes to the Conceptual Framework may affect the application of IFRS in situations where no standard applies to a particular transaction or event. This Conceptual Framework is applicable to fiscal years beginning on January 1, 2020. The Bank does not expect this standard to have a material impact.

IFRS 3 “Business Combination” – amendments in definition of a business: the amendments will help entities determine whether an acquisition made is a business or the purchase of a group of assets. The new amended definition emphasizes that the output of a business is to provide goods and services to customers, whereas the previous definition focused on returns in the form of dividends, lower costs or other economic benefits. This standard is applicable to fiscal years beginning on January 1, 2020. The Bank does not expect this standard to have a material impact on the consolidated financial statements.

IAS 1 “Presentation of Financial Statements” and IAS 8 “Accounting Policies, Changes in Accounting Estimates and Errors” – amendments to definition of material: the new definition states that information is material if omitting, misstating or obscuring it could reasonably be expected to influence decisions that the primary users of general purpose financial statements make on the basis of those financial statements. The amendments clarify that materiality will depend on the nature or magnitude of information or both. These amendments replaced the threshold “could influence” with “could reasonably be expected to influence”. This implies that the materiality assessment will need to take into account how primary users could reasonably be expected to be influenced in making economic decisions. This standard is applicable to fiscal years beginning on January 1, 2020. The Bank does not expect this standard to have a material impact on the consolidated financial statements.

CONTINGENT TRANSACTIONS

In order to meet specific financial needs of customers, the Bank’s credit policy also includes, among others, the granting of guarantees, securities, bonds, letters of credit and documentary credits. Although these transactions are not recognized in the statement of financial position, since they imply a possible liability for the Bank, they expose the Bank to credit risks other than those recognized in statement of financial position and they are, therefore, an integral part of the total risk of the Bank.

As of September 30, 2019 and December 31, 2018, the Bank maintains the following contingent transactions:

	09/30/2019		12/31/2018
Undrawn commitments of credit cards and checking accounts		92,501,723		95,020,861
Overdraft and unused agreed commitments (*)		2,472,081		634,288
Guarantees granted (*)		706,074		940,990
Letters of credit		312,141		256,788
		95,992,019		96,852,927

- 17 -

NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF SEPTEMBER 30, 2019

(Translation of Financial statements originally issued in Spanish – See Note 39)

(Figures expressed in thousands of Pesos)

(*) Includes transactions not covered by BCRA debtor classification standards of financial sector. For overdraft and unused agreed commitments, it includes an amount of 710,153 and 221,220, as of September 30, 2019 and December 31, 2018, respectively. For Guarantees granted it includes the amount of 185,942 and 166,650, as of September 30, 2019 and December 31, 2018, respectively.

Risks related to the contingent transactions described above have been evaluated and are controlled within the framework of the Bank’s credit risk policy described in note 39 to consolidated financial statements as of December 31, 2018, already issued.

FAIR VALUE QUANTITATIVE AND QUALITATIVE DISCLOSURES

The fair value is the amount at which an asset can be exchanged, or at which a liability can be settled, in mutual independent terms and conditions between participants of the principal market (or the most advantageous market) who are duly informed and willing to transact in an orderly and current transaction, at the measurement date under the current market conditions whether the price is directly observable or estimated using a valuation technique under the assumption that the Bank is an ongoing business.

When a financial instrument is quoted in a liquid and active market, its price in the market in a real transaction provides the most reliable evidence of its fair value. Nevertheless, when there is no quoted price in the market or it cannot be an evidence of the fair value of such instrument, in order to determine such fair value, the entities may use the market value of another instrument with similar characteristics, the analysis of discounted cash flows or other applicable techniques, which shall be significantly affected by the assumptions used.

Notwithstanding the above, the Bank’s Management has used its best judgment to estimate the fair values of its financial instruments; any technique to perform such estimate implies certain inherent fragility level.

Fair value hierarchy

The Bank uses the following hierarchy to determine and disclose the fair value of financial instruments, according to the valuation technique applied:

Level 1: quoted prices (unadjusted) observable in active markets that the Bank accesses to at the measurement day for identical assets or liabilities. The Bank considers markets as active only if there are sufficient trading activities with regards to the volume and liquidity of the identical assets or liabilities and when there are binding and exercisable price quotes available at each reporting period.

Level 2: Valuation techniques for which the data and variables having a significant impact on the determination of the fair value recognized or disclosed are observable for the asset or liability, either directly or indirectly. Such inputs include quoted prices for similar assets or liabilities in active markets, quoted prices for identical instruments in inactive markets and observable inputs other than quoted prices such as interest rates and yield curves, implied volatilities, and credit spreads. In addition, adjustments to level 2 inputs may be required for the condition or location of the asset or the extent to which it relates to items that are comparable to the valued instrument. However, if such adjustments are based on unobservable inputs which are significant to the entire measurement, the Bank will classify the instruments as Level 3.

Level 3: Valuation techniques for which the data and variables having a significant impact on the determination of the fair value recognized or disclosed are not based on observable market information.

The following tables show the hierarchy in the Bank’s financial asset and liability at fair value measurement, as of September 30, 2019 and December 31, 2018:

- 18 -

NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF SEPTEMBER 30, 2019

(Translation of Financial statements originally issued in Spanish – See Note 39)

(Figures expressed in thousands of Pesos)

Description

Financial assets and financial liabilities measured at fair value on
a recurring basis as of September 30, 2019

	Total		Level 1		Level 2		Level 3
Financial assets

At fair value through profit or loss
Debt Securities at fair value through profit or loss		1,495,749		336,535		416,253		742,961
Derivative Financial Instruments		56,436		13,254		43,182
Other financial assets		273,320		248,883				24,437
Financial assets delivered as guarantee		60,920		60,920
Equity instruments at fair value through profit or loss		1,512,249		8,454				1,503,795

At fair value through OCI
Other debt securities		56,429,055		40,560,744		15,868,311
Financial Assets delivered as guarantee		1,020,126		1,020,126

Total		60,847,855		42,248,916		16,327,746		2,271,193

Financial liabilities

At fair value through profit or loss
Derivatives financial instruments		147,309		2,385		144,924
Total		147,309		2,385		144,924

Description	Financial assets and financial liabilities measured at fair value on a recurring basis as of December 31, 2018
	Total		Level 1		Level 2		Level 3
Financial assets

At fair value through profit or loss
Debt Securities at fair value through profit or loss		2,635,247		982,116		362,079		1,291,052
Derivative Financial Instruments		17,293		13,732		3,561
Other financial assets		413,136		321,968				91,168
Financial Assets delivered as guarantee		150,456		150,456
Equity instruments at fair value through profit or loss		51,518		6,110				45,408

At fair value through OCI
Other debt securities		56,433,583		42,646,037		13,787,546
Total		59,701,233		44,120,419		14,153,186		1,427,628

Financial liabilities

At fair value through profit or loss
Derivatives financial instruments		1,369		593		776
Total		1,369		593		776

Description of valuation process

The fair value of instruments categorized as Level 1 was assessed by using quoted prices effective at the end of each period or fiscal year, as applicable, in active markets for identical assets or liabilities, if representative. Currently, for government and private securities, there are two principal markets in which the Bank operates: BYMA and MAE. Additionally, in the case of derivatives, both MAE andMercado a Término de Rosario SA (ROFEX) are deemed active markets.

On the other hand, for certain assets and liabilities that do not have an active market, categorized as Level 2, the Bank used valuation techniques that included the use of market transactions performed under mutual independent terms and conditions, between interested and duly informed parties, provided that they are available, as well as references to the current fair value of another instrument being substantially similar, or otherwise the analysis of cash flows discounted at rates built from market information of similar instruments.

-19-

NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF SEPTEMBER 30, 2019

(Translation of Financial statements originally issued in Spanish – See Note 39)

(Figures expressed in thousands of Pesos)

In addition, certain assets and liabilities included in this category were valued using price quotes of identical instruments in “less active markets”.

Finally, the Bank has categorized as level 3 those assets and liabilities for which there are no identical or similar transactions in the market. In order to determine the market value of these instruments, the Bank used valuation techniques based on its own assumptions. For this approach, the Bank mainly used the cash flow discount model.

As of September 30, 2019 and December 31, 2018, the Bank has neither changed the techniques nor the assumptions used to estimate the fair value of the financial instruments.

Below there is the reconciliation between the amounts at the beginning and at the end of the period or fiscal year, as applicable, of the financial instruments recognized at fair value, using the valuation technique based on the Bank’s own assumptions, as of September 30, 2019 and December 31, 2018:

	Fair values using valuation techniques based on the Bank’s own assumptions (level 3) September 30, 2019
Description	Debt securities			Other financial assets			Equity instruments at fair value through profit or loss
Amount at the beginning		1,291,052			91,168			45,408
Transfers to Level 3
Transfers from Level 3
Profit and loss		382,191			8,946			35,454
Recognition and derecognition		(930,282	)		(75,677	)		1,422,933	(*)
Amount at end of the period		742,961			24,437			1,503,795

(*) It is related to the reclassification from non current assets held for sale. Additionally, see note 10 to these condensed consolidated interim financial statements.

	Fair values using valuation techniques based on the Bank’s own assumptions (level 3) December 31, 2018
Description	Debt securities			Other financial assets			Equity instruments at fair value through profit or loss
Amount at the beginning		35,841			161,751			35,774
Transfers to Level 3
Transfers from Level 3
Profit and loss		(200,279	)		(92,022	)		9,634
Recognition and derecognition		1,455,490			21,439
Amount at end of the fiscal year		1,291,052			91,168			45,408

Instruments measured as level 3 include mainly Equity instruments at fair value through profit or loss and debt securities, for which the construction of fair values was obtained based on the Bank’s own assumptions that are not easily available in the market.

Changes in fair value levels

The Bank monitors the availability of information in the market to evaluate the classification of financial instruments into the fair value hierarchy, as well as the resulting determination of transfers between levels 1, 2 and 3 at each period end.

As of September 30, 2019 and December 31, 2018, the Bank has not recognized any transfers between levels 1, 2 and 3 of the fair value hierarchy.

-20-

NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF SEPTEMBER 30, 2019

(Translation of Financial statements originally issued in Spanish – See Note 39)

(Figures expressed in thousands of Pesos)

Financial assets and liabilities not recognized at fair value

Next follows a description of the main methods and assumptions used to determine the fair values of financial instruments not recognized at their fair value in these condensed consolidated interim financial statements:

Instruments with fair value similar to the carrying amount: financial assets and liabilities that are liquid or have short-term maturities (less than three months) were deemed to have a fair value similar to the carrying amount.

Fixed-rate financial instruments: the fair value of financial assets was recognized discounting future cash flows at current market rates, for each period or fiscal year, as applicable, for financial instruments of similar characteristics. The estimated fair value of fixed-interest rate deposits and liabilities was assessed discounting future cash flows by using estimated interest rates for deposits or placings with similar maturities to those of the Bank’s portfolio.

For public listed assets and liabilities, or prices reported by certain renowned suppliers of prices, the fair value was determined based on such prices.

The following table shows a comparison between the fair value and the carrying amount of financial instruments not measured at fair value as of September 30, 2019 and December 31, 2018:

	09/30/2019
	Carrying amount		Level 1		Level 2		Level 3		Fair value
Financial assets
Cash and deposits in banks		96,608,739		96,608,739						96,608,739
Other financial assets		3,807,086		3,807,086						3,807,086
Loans and other financing		194,353,687				138,765		170,983,682		171,122,447
Other debt securities		20,141,025		2,317,264		16,919,341		599,465		19,836,070
Financial assets delivered as guarantee		9,629,414		8,166,171						8,166,171
		324,539,951		110,899,260		17,058,106		171,583,147		299,540,513

Financial liabilities
Deposits		259,202,432		128,523,086				130,803,843		259,326,929
Repo transactions		2,167,021		2,167,021						2,167,021
Other financial liabilities		16,711,171		15,576,861		1,123,300				16,700,161
Financing received from the BCRA and other financial entities		3,344,842		2,660,346		636,176				3,296,522
Issued corporate bonds		6,008,238				1,206,468		2,029,506		3,235,974
Subordinated corporate bonds		23,726,491				15,992,228				15,992,228
		311,160,195		148,927,314		18,958,172		132,833,349		300,718,835

	12/31/2018
	Carrying amount		Level 1		Level 2		Level 3		Fair value
Financial assets
Cash and deposits in banks		74,766,039		74,766,039						74,766,039
Other financial assets		2,586,448		2,586,448						2,586,448
Loans and other financing		178,874,755				186,951		162,375,447		162,562,398
Other debt securities		8,151,176		173,337		7,165,102		2,749		7,341,188
Financial assets delivered as guarantee		6,605,764		6,573,772		31,992				6,605,764
		270,984,182		84,099,596		7,384,045		162,378,196		253,861,837

- 21 -

NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF SEPTEMBER 30, 2019

(Translation of Financial statements originally issued in Spanish – See Note 39)

(Figures expressed in thousands of Pesos)

	12/31/2018
	Carrying amount		Level 1		Level 2		Level 3		Fair value
Financial liabilities
Deposits		237,954,419		106,273,098				131,778,797		238,051,895
Repo transactions		164,469		164,469						164,469
Other financial liabilities		15,318,513		15,152,415		166,522				15,318,937
Financing received from the BCRA and other financial entities		2,998,010		2,532,284		432,346				2,964,630
Issued corporate bonds		6,377,311				4,981,686				4,981,686
Subordinated corporate bonds		15,288,390				12,260,778				12,260,778
		278,101,112		124,122,266		17,841,332		131,778,797		273,742,395

INVESTMENTS IN ASSOCIATES AND JOINT ARRANGEMENTS

6.1 Associates entities

The Bank holds an investment in the associate Macro Warrants SA. The existence of significant influence is evidenced by the representation the Bank has in the Board of Directors of the associate. In order to measure this investment, we used accounting information of Macro Warrants SA as of June 30, 2019. Additionally, the Bank has considered, when applicable, the material transactions or events occurring between July 1, 2019, and September 30, 2019.

The following table presents the summarized financial information on the Bank’s investment in the associate:

Summarized statement of financial position	09/30/2019			12/31/2018
Total assets		25,384			18,111
Total liabilities		4,784			2,269
Shareholders’ equity		20,600			15,842
Proportional Bank’s interest		5	%		5	%
Investment carrying amount		1,030			792

As of September 30, 2019 and 2018 the investment carrying amount in the net income amounted to 403 and 118, respectively.

6.2.

Joint ventures

The Bank participates in the following joint ventures, implemented throughUniones Transitorias de Empresas (UTE):

Banco Macro SA – Wordline Argentina SA Unión transitoria: on April 7, 1998, the Bank executed an agreement with Siemens Itron Services SA to organize an UTE controlled on a joint basis through a 50% interest, the purpose of which is to facilitate a data processing center for the tax administration, to modernize the systems and tax collection processes of the Province of Salta and manage and recover municipal taxes and fees.

The following table presents the summarized financial information on the Bank’s investment in the UTE:

Summarized statement of financial position	09/30/2019			12/31/2018
Total assets		341,162			270,287
Total liabilities		74,773			59,639
Shareholders’ equity		266,389			210,648
Proportional Bank’s interest		50	%		50	%
Investment carrying amount		133,195			105,324

As of September 30, 2019 and 2018 the investment carrying amount in the net income amounted to 65,139 and 36,759, respectively.

- 22 -

NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF SEPTEMBER 30, 2019

(Translation of Financial statements originally issued in Spanish – See Note 39)

(Figures expressed in thousands of Pesos)

Banco Macro SA – Gestiva SA Unión transitoria: on May 4, 2010 and August 15, 2012, the Bank executed with Gestiva SA the UTE agreement to form “Banco Macro SA – Gestiva SA – Unión Transitoria de Empresas”, under joint control, the purpose of which is to render the integral processing and management services of the tax system of the Province of Misiones, the management thereof and tax collection services. The Bank holds a 5% interest in this UTE.

On June 27, 2018, the Bank, the UTE and the tax authorities of the Misiones provincial government entered into an agreement of “termination by mutual agreement” of the adaptation agreement, without implying or modifying the Bank’s rights and obligations as a financial agent of the province for the services provision established in the agreement. As of September 30, 2019 and December 31, 2018, according to the abovementioned, the remaining investment amounted to 1,156 and 2,707, respectively.

OTHER FINANCIAL AND NON FINANCIAL ASSETS

The breakdown of other financial and non financial assets as of September 30, 2019 and December 31, 2018 is as follows:

Other financial assets	09/30/2019			12/31/2018
Sundry debtors (note 10)		4,298,442			1,808,232
Receivables from other spot sales pending settlement		829,603			421,261
Private securities		273,320			413,136
Receivables from spot sales of foreign currency pending settlement		47,109			235,643
Receivables from spot sales of government securities pending settlement		2,937			111,699
Other		112,658			14,628
Allowances (note 10)		(1,483,663	)		(5,015	)
		4,080,406			2,999,584

Other non financial assets	09/30/2019	12/31/2018
Investments in property (Exhibit F)	491,260	273,604
Advanced prepayments	336,271	157,835
Prepayments for the purchase of assets	159,398	159,231
Tax advances	131,898	147,091
Other	57,301	96,308
	1,176,128	834,069

RELATED PARTIES

A related party is a person or entity that is related to the Bank:

has control or joint control of the Bank;

has significant influence over the Bank;

is a member of the key management personnel of the Bank or of the parent of the Bank;

members of the same group;

one entity is an associate (or an associate of a member of a group of which the other entity is a member).

Key management personnel are those persons having authority and responsibility for planning, directing and controlling the activities of the Bank, directly or indirectly. The Bank considers as key management personnel, for the purposes of IAS 24, the members of the Board of Directors and the senior management members of the Risk Management Committee, the Assets and Liabilities Committee and the Senior Credit Committee.

As of September 30, 2019 and December 31, 2018, amounts related to transactions generated with related parties are as follows:

- 23 -

NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF SEPTEMBER 30, 2019

(Translation of Financial statements originally issued in Spanish – See Note 39)

(Figures expressed in thousands of Pesos)

	Information as of September 30, 2019
	Main subsidiaries (1)
	Banco del Tucumán SA		Macro Bank Limited		Macro Securities SA		Associates		Key management personnel		Other related parties		Total
ASSETS
Cash and deposits in banks				461									461
Other financial assets		3,108											3,108
Loans and other financing (2)
Documents												68,625	68,625
Overdrafts										92		927,879	927,971
Credit cards										32,009		8,898	40,907
Leases						3,891						7,272	11,163
Personal loans										302		746	1,048
Mortgage loans										65,891		284	66,175
Other loans												355,281	355,281
Guarantees granted												779,416	779,416
Total assets		3,108		461		3,891				98,294		2,148,401	2,254,155

LIABILITIES
Deposits				11		507,084		22,291		451,410		1,855,610	2,836,406
Derivative financial instruments												133,615	133,615
Other financial liabilities						139,150				74		135,151	274,375
Other non financial assets												234	234
Total liabilities				11		646,234		22,291		451,484		2,124,610	3,244,630

(1)

These transactions are eliminated during the consolidation process.

(2)

The maximum financing amount for loans and other financing as of September 30, 2019 for Banco de Tucumán SA, Macro Securities SA, Key management personnel and other related parties amounted to 2,980,000, 5,188, 133,469 and 3,374,212, respectively.

	Information as of December 31, 2018
	Main subsidiaries (1)
	Banco del Tucumán SA		Macro Bank Limited		Macro Securities SA		Associates		Key management personnel		Other related parties		Total
ASSETS
Cash and deposits in banks				583										583
Other financial assets		2,504				25,276		20,660						48,440
Loans and other financing (2)
Documents												331,699		331,699
Overdrafts						6				3,505		161,905		165,416
Credit cards						286				19,011		51,424		70,721
Leases						5,746						1,407		7,153
Personal loans										1,388				1,388
Mortgage loans										54,824		356		55,180
Other loans												232,670		232,670
Guarantees granted												391,699		391,699
Other nonfinancial assets						83,178								83,178
Total assets		2,504		583		114,492		20,660		78,728		1,171,160		1,388,127

LIABILITIES
Deposits				13		311,073		1,774,149		4,890,280		984,659		7,960,174
Other financial liabilities								101,232		31		514		101,777
Financing received from the BCRA and other financial entities		301,742												301,742
Issued corporate bonds						11,231								11,231
Subordinated corporate bonds												46,605	��	46,605
Other nonfinancial liabilities												119		119
Total liabilities		301,742		13		322,304		1,875,381		4,890,311		1,031,897		8,421,648

- 24 -

NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF SEPTEMBER 30, 2019

(Translation of Financial statements originally issued in Spanish – See Note 39)

(Figures expressed in thousands of Pesos)

(1)

These transactions are eliminated during the consolidation process.

(2)

The maximum financing amount for loans and other financing as of December 31, 2018 for Banco del Tucumán SA, Macro Bank Limited, Macro Securities SA, associates, Key management personnel and other related parties amounted to 2,550,000, 0, 7,216, 0, 82,297 and 1,551,047, respectively.

As of September 30, 2019 and 2018, income (loss) related to transactions generated with related parties are as follows:

		Information as of September 30, 2019
	Main subsidiaries (1)
		Banco del Tucumán SA			Macro Bank Limited		Macro Securities SA		Associates			Key management personnel			Other related parties			Total
INCOME / (LOSS)
Interest income			33,844					4,448					2,880			120,588			161,760
Interest expense			(65,981	)						(1,275	)		(642,609	)		(163,836	)		(873,701	)
Commissions income			6					424		129			38			3,182			3,779
Net loss from measurement of financial instruments at fair value through profit or loss													(14,508	)		(18,864	)		(33,372	)
Other operating income			25,940			2										21			25,963
Administrative expenses																(17,419	)		(17,419	)
Other operating expenses																(51,757	)		(51,757	)
(Loss) / income			(6,191	)		2		4,872		(1,146	)		(654,199	)		(128,085	)		(784,747	)

(1)

These transactions are eliminated during the consolidation process.

	Information as of September 30, 2018
	Main subsidiaries (1)
		Banco del Tucumán SA		Macro Bank Limited	Macro Securities SA	Associates				Key management personnel		Other related parties		Total
INCOME / (LOSS)
Interest income		352,190			1,756					1,594		37,398		392,938
Interest expense		(2,781	)			(97,712	)			(131,192	)	(412	)	(232,097)
Commissions income		7			251	82				13		4,153		4,506
Other operating income		18,279		29								11		18,319
Administrative expenses		(4	)									(7,022	)	(7,026)
Other operating expenses						(793,188	)	(2	)			(17,643	)	(810,831)
Income / (loss)		367,691		29	2,007	(890,818	)			(129,585	)	16,485		(634,191)

(1)

These transactions are eliminated during the consolidation process.

(2)

These losses were mainly generated by debit and credit cards processing expenses billed by Prisma Medios de Pago SA (see note 10).

Transactions generated by the Bank with its related parties for transactions arranged the usual and ordinary course of business were performed in normal market conditions, both as to interest rates and prices and as to the required guarantees.

The Bank does not have loans granted to directors and other key management personnel secured with shares.

Total remunerations received as salary and bonus by the key management personnel as of September 30, 2019 and 2018, totaled 148,881 and 82,179 respectively.

In addition, fees received by the Directors as September 30, 2019 and 2018 amounted to 849,190 and 458,781 respectively.

Additionally, the composition of the Board of Directors and key management personnel is as follows:

	09/30/2019		12/31/2018
Board of Directors		25		24
Senior managers of the key management personnel		14		15
		39		39

- 25 -

NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF SEPTEMBER 30, 2019

(Translation of Financial statements originally issued in Spanish – See Note 39)

(Figures expressed in thousands of Pesos)

MODIFICATION OF FINANCIAL ASSETS

As explained in note 37, on August 28, 2019, the Federal Executive Power, through the Emergency Decree No. 596/2019 (DNU, for its acronym in Spanish) set, for certain government securities in the short-term, an immediate and stepped extension of their maturities, with no effects on the denomination currency, principal and the agreed-upon interest rate. This DNU, established the following schedule related to how these obligations will be canceled: (i) at the original maturity day, 15% of the debt amount will be cancelled at the respective date, (ii) 90 days after the payments described in (i), 25% of the debt amount will be cancelled, plus accrued interest over the carrying amount (net of the payments made according to section (i)); and (iii) the remaining debt amount will be cancelled 180 days later than the payments described in (i). For LECAPS with maturity date from January 1, 2020, the remaining debt amount, after the payments described in section (i), will be fully cancelled at 90 days after such payments.

As the Bank had in its portfolio government securities which contractual cash flows were modified as explained above under business model amortized cost, the Bank recalculated, at the modification date, the gross carrying amount of those financial assets as the present value of the modified contractual cash flows discounted at the original effective rate.

At the modification date, the gross carrying amount of the modified financial assets amounted to 8,525,679. As a consequence, the new gross carrying amount amounted to 5,960,119 and generated a modification loss for 2,565,560 included in “other operating expenses” (see additionally note 21). As of September 30, 2019 the gross carrying amount of these financial assets amounted to 6,020,988.

10.

NONCURRENT ASSETS HELD FOR SALE – PRISMA MEDIOS DE PAGO SA

As of December 31, 2018, the Bank maintained recorded its investment in Prisma Medios de Pago SA (“Prisma”), under noncurrent assets held for sale, due to the obligation to transfer all its shares within the scope of the Divestment obligation undertaken with the Argentine Antitrust Commission. Therefore, the investment was valued according to IFRS 5 “Non-current assets held for sale and discontinued operations”, at the lowest of its carrying amount and the best estimation of the fair value less costs until its sale. As of December 31, 2018 the investment amount, included in this item, amounted to 105,287.

On January 21, 2019, the Bank, together with the other shareholders, accepted a purchase offer made by AI ZENITH (Netherlands) B.V. (a company related to Advent International Corporation) for the acquisition of 1,933,051 common shares of par value Ps.1 each and entitled to one vote, representing 4.6775 % of its share capital, equivalent to 51% of the Bank’s capital stock in such company.

On February 1, 2019, the Bank completed the transfer of such shares for a total purchase price of (in thousands) USD 64,542 out of which the Bank received on the date hereof (in thousands) USD 38,311 and the payment of the balance for an amount of (in thousands) USD 26,231 shall be deferred during the next 5 years as follows: (i) 30% of such amount in Pesos adjusted by UVA at a 15% nominal annual rate; and (ii) 70% in US Dollars at a 10% nominal annual rate. The purchase price is guaranteed by the issuance of notes in favor of the Bank and pledges of the transferred shares.

During July 2019, the process to determine the final selling price of the shares of Prisma Medios de Pago SA was completed and the final price was (in thousands) USD 63,456. The difference arising from a final price lower than the estimated price was deducted from the price balance, and therefore there was no need for the Bank to return any amounts received. All other payment conditions were not modified and remain in full force and effect under the terms described in this note.

Profits generated by the sale were recorded in the item “Other operating income” (see note 18). The amounts receivable, in pesos and US dollars, are recorded in the item “Other financial assets” and for such amounts an allowance was recorded, according to BCRA rules (see note 7).

The remaining of the Bank holding in Prisma Medios de Pago SA (equivalent to 49%), is recorded in “Equity instruments at fair value through profit or loss” determined from valuations performed by independent experts and taking into account parameters established by BCRA on this subject.

- 26 -

NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF SEPTEMBER 30, 2019

(Translation of Financial statements originally issued in Spanish – See Note 39)

(Figures expressed in thousands of Pesos)

In addition, sellers retained the usufruct (dividends) of the shares sold to be reported by Prisma for the year ended December 31, 2018, which were collected on April 26, 2019. Besides, the proportion applicable to the buyer of the dividends to be reported for the following fiscal years –with the buyer’s commitment to voting in favor of the distribution of certain minimum percentages– will be used to create a guarantee trust to repay the deferred price amount through the concession by the buyer and Prisma of a usufruct over the economic rights of the shares in favor of such trust.

11.

PROVISIONS

This item includes the amounts estimated to face a liability of probable occurrence, which if occurring, would originate a loss for the Bank.

Exhibit J “Changes in Provisions” presents the changes in provisions as of September 30, 2019 and December 31, 2018.

The expected terms to settle these obligations are as follows:

	09/30/2019
	Within 12 months		Beyond 12 months		09/30/2019		12/31/2018
For administrative, disciplinary and criminal penalties				718		718		718
Commercial claims in progress		642,994		151,939		794,933		571,394
Labor lawsuits		49,023		102,670		151,693		110,095
Pension funds - reimbursement		74,506		64,590		139,096		124,278
Other		210,687		31,850		242,537		239,409
		977,210		351,767		1,328,977		1,045,894

In the opinion of the Management of the Bank and its legal counsel, there are no other significant effects than those disclosed in these condensed consolidated interim financial statements, the amounts and settlement terms of which have been recognized based on the current value of such estimates, considering the probable settlement date thereof.

12.

OTHER FINANCIAL AND NON FINANCIAL LIABILITIES

The breakdown of other financial and non financial liabilities as of September 30, 2019 and December 31, 2018 is as follows:

Other financial liabilities	09/30/2019		12/31/2018
Credit card settlement - due to merchants		8,761,911		9,700,821
Payment orders pending settlement foreign exchange		2,723,547		1,594,191
Amounts payable for spot purchases pending settlement		1,509,831		931,910
Finance leases liabilities (note 3)		940,715
Collections and other transactions on account and behalf others		802,592		740,331
Amounts payable for spot purchases of foreign currency pending settlement		47,287		691,612
Amounts payable for spot purchases of government securities pending settlement		854		62,870
Other		16,711,171		15,318,513

Other non financial liabilities		09/30/2019		12/31/2018
Salaries and payroll taxes payables (see note 33.1.c)		4,119,960		1,842,754
Withholdings		1,612,996		1,197,945
Taxes payables		1,545,999		1,372,317
Miscellaneous payables		701,612		623,265
Fees payables		472,213		154,072
Retirement pension payment orders pending settlement		212,510		255,331
Other		470,448		429,433
		9,135,738		5,875,117

- 27 -

NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF SEPTEMBER 30, 2019

(Translation of Financial statements originally issued in Spanish – See Note 39)

(Figures expressed in thousands of Pesos)

13.

ANALYSIS OF FINANCIAL ASSETS TO BE RECOVERED AND FINANCIAL LIABILITIES TO BE SETTLED

The following tables show the analysis of financial assets and liabilities the Bank expects to recover and settle as of September 30, 2019 and December 31, 2018:

09/30/2019	Without due date		Total up to 12 months		Total over 12 months
Assets
Cash and deposits in banks		96,608,739
Debt securities at fair value through profit or loss		435,265		720,627		339,857
Derivative instruments				56,436
Other financial assets		2,370,297		1,710,109
Loans and other financing (1)		2,120,736		125,203,612		67,029,339
Other debt securities				64,969,926		11,600,154
Financial assets delivered as guarantee		8,166,171		2,544,289
Equity instruments at fair value through profit or loss		1,512,249
Total assets		111,213,457		195,204,999		78,969,350

Liabilities
Deposits	116,512,362	142,642,835	47,235
Derivative financial instruments		147,309
Repo transactions		2,167,021
Other financial liabilities		16,548,293	162,878
Financing received from BCRA and other financial entities		3,117,844	226,998
Issued corporate bonds		662,047	5,346,191
Subordinated corporate bonds		703,171	23,023,320
Total liabilities	116,512,362	165,988,520	28,806,622

12/31/2018	Without due date		Total up to 12 months		Total over 12 months
Assets
Cash and deposits in banks		74,766,039
Debt securities at fair value through profit or loss				1,680,677		954,570
Derivative instruments				17,293
Other financial assets		1,676,223		1,257,151		66,210
Loans and other financing (1)		1,208,855		112,131,606		65,534,294
Other debt securities		2,748		56,504,434		8,077,577
Financial assets delivered as guarantee		6,573,772		182,448
Equity instruments at fair value through profit or loss		51,518
Total assets		84,279,155		171,773,609		74,632,651

Liabilities
Deposits	103,394,451	134,489,434	70,534
Derivative financial instruments		1,369
Repo transactions		164,469
Other financial liabilities		15,172,438	146,075
Financing received from BCRA and other financial entities		2,827,666	170,344
Issued corporate bonds		305,759	6,071,552
Subordinated corporate bonds		165,070	15,123,320
Total liabilities	103,394,451	153,126,205	21,581,825

(1)

The amounts included in “without due date”, are related with the non-performing portfolio.

14.

DISCLOSURES BY OPERATING SEGMENT

For management purposes the Bank’s Management has determined that it has only one operating segment related to the banking business. In this sense, the Bank supervises the operating segment income (loss) for the period in order to make decisions about resources to be allocated to the segment and assess its performance, which is measured on a consistent basis with the profit or loss in the financial statements.

- 28 -

NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF SEPTEMBER 30, 2019

(Translation of Financial statements originally issued in Spanish – See Note 39)

(Figures expressed in thousands of Pesos)

15.

INCOME TAX

Inflation adjustment on income tax

Tax Reform Act 27430, amended by Act 27468, established the following, regarding to inflation adjustment on income tax for the fiscal years beginning on January 1, 2018.

Such adjustment will be applicable in the fiscal year in which the variation of the IPC will be higher than 100% for the thirty-six months before the end of the tax period;

ii)

Regarding to the first, second and third fiscal year after its effective date, this procedure will be applicable if the variation of the abovementioned index, calculated from the beginning until the end of each of those fiscal years exceeds 55%, 30% and 15% for the first, second and third fiscal year of application, respectively; and

iii)

The positive or negative inflation adjustment, as the case may be, corresponding to the first, second and third fiscal years beginning on January 1, 2018, must be calculated if the assumptions mentioned in items (a) and (b) are verified and shall be allocated one third in the fiscal year for which the adjustment is calculated and the remaining two thirds in equal parts in the following immediate fiscal years.

At the closing date of an intermediate period, the Bank shall assess whether at the closing date of the fiscal year the conditions established by the income tax Act to practice the inflation adjustment are met. The available information at the issuance of these condensed consolidated interim financial statements related to changes of the CPI, confirmed that such conditions are met. As a consequence, the current and deferred income tax was recognized for the nine-month period ended September 30, 2019, including the effects of the application of the inflation adjustment on income taxes established by Law.

In addition, in October 2019, Banco Macro SA filed to the Federal Public Revenue Agency (AFIP, for its acronym in Spanish) recovery actions based on section 81 of Law 11683, for the higher tax paid for fiscal years 2013 to 2018. These actions are based on related case Law which established the unconstitutionality of the standards that banned the inflation adjustment on income tax with confiscatory effects.

As a result of the assessment made by the legal and tax advisors and based on related case law, the Bank considers that is probable to obtain a final probable resolution. As of the date of issuance of these condensed consolidated interim financial statements, AFIP has not issued a resolution regarding the actions filed.

The main items of income tax expense in the condensed consolidated interim financial statements are as follows:

	09/30/2019						09/30/2018
	Accumulated from beginning of year up to 09/30/2019			Quarter ended 09/30/2019			Accumulated from beginning of year up to 09/30/2018			Quarter ended 09/30/2018
Current income tax expense		7,810,492			1,910,436			5,007,608			1,807,210
Gain for deferred income tax		(3,033,786	)(*)		(3,173,521	)		(394,308	)		(89,489	)
Income tax expense / (gain) recorded in the statement of income		4,776,706			(1,263,085	)		4,613,300			1,717,721
Income tax loss / (gain) recorded in other comprehensive income		76,278			98,417			(82,098	)		(55,447	)
		4,852,984			(1,164,668	)		4,531,202			1,662,274

(*) Includes gain effects for the deferred income tax as explained in 15.a).iii).

- 29 -

NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF SEPTEMBER 30, 2019

(Translation of Financial statements originally issued in Spanish – See Note 39)

(Figures expressed in thousands of Pesos)

16.

COMMISSIONS INCOME

	09/30/2019				09/30/2018
Description	Accumulated from beginning of year up to 09/30/2019		Quarter ended 09/30/2019		Accumulated from beginning of year up to 09/30/2018		Quarter ended 09/30/2018
Performance obligations satisfied at a point in time
Commissions related to obligations		6,611,733		2,356,638		5,288,357		1,966,879
Commissions related to credit cards		3,363,470		1,291,628		2,271,960		776,626
Commissions related to insurance		687,818		230,296		519,961		178,226
Commissions related to trading and foreign exchange transactions		268,245		104,833		151,095		65,627
Commissions related to securities		166,017		50,768		67,312		20,036
Commissions related to loans and other financing		102,192		44,959		60,259		18,514
Commissions related to loans commitments and financial guarantees		2,749		308		178
Performance obligations satisfied over certain time period
Commissions related to credit cards		131,749		45,675		69,050		35,444
Commissions related to trading and foreign exchange transactions		15,404		10,498		10,799		4,089
Commissions related to loans and other financing		8,162		1,990		4,216		3,183
Commissions related to loans commitments and financial guarantees		1,831		1,831		743		468
Commissions related to obligations		1,796		411		3,471		1,264
		11,361,166		4,139,835		8,447,401		3,070,356

17.

DIFFERENCE IN QUOTED PRICES OF GOLD AND FOREIGN CURRENCY

	09/30/2019					09/30/2018
Description	Accumulated from beginning of year up to 09/30/2019			Quarter ended 09/30/2019		Accumulated from beginning of year up to 09/30/2018			Quarter ended 09/30/2018
Translation of foreign currency assets and liabilities into pesos		(276,903	)		332,156		(3,074,630	)		(1,759,100	)
Income from foreign currency exchange		2,055,454			1,164,172		968,499			514,657
		1,778,551			1,496,328		(2,106,131	)		(1,244,443	)

- 30 -

NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF SEPTEMBER 30, 2019

(Translation of Financial statements originally issued in Spanish – See Note 39)

(Figures expressed in thousands of Pesos)

18.

OTHER OPERATING INCOME

	09/30/2019					09/30/2018
Description	Accumulated from beginning of year up to 09/30/2019		Quarter ended 09/30/2019			Accumulated from beginning of year up to 09/30/2018		Quarter ended 09/30/2018
Sale of noncurrent assets held for sale (note 10)		2,300,306		(40,386	)
Services		1,174,564		477,254			962,350		337,373
Adjustments and interest from other receivables		383,039		137,469			152,354		72,259
Derecognition or substantial modification of financial liabilities		319,867		262,278			592,162		592,162
Sale of investment property and other nonfinancial assets		170,239		(31	)		137,227		104
Adjustments from other receivables with CER clauses		82,586		27,635
Initial recognition of loans		61,610		(7,955	)		103,911		47,381
Sale of property, plant and equipment		10,384		5,008			2,281		831
Other		664,868		209,383			447,887		151,684
		5,167,463		1,070,655			2,398,172		1,201,794

19.

EMPLOYEE BENEFITS

	09/30/2019				09/30/2018
Description	Accumulated from beginning of year up to 09/30/2019		Quarter ended 09/30/2019		Accumulated from beginning of year up to 09/30/2018		Quarter ended 09/30/2018
Salary		8,458,864		3,155,424		5,430,285		2,076,043
Payroll taxes (see note 33.1.c)		2,699,495		668,490		1,059,785		402,664
Compensations and bonuses to employees		1,044,689		491,094		517,373		173,981
Employee services		274,476		113,436		173,173		67,095
		12,477,524		4,428,444		7,180,616		2,719,783

20.

ADMINISTRATIVE EXPENSES

	09/30/2019				09/30/2018
Description	Accumulated from beginning of year up to 09/30/2019		Quarter ended 09/30/2019		Accumulated from beginning of year up to 09/30/2018		Quarter ended 09/30/2018
Fees to directors and statutory audits		1,168,096		554,719		483,913		174,035
Armored truck, documentation and events		969,624		470,750		601,837		216,466
Maintenance, conservation and repair expenses		930,872		334,772		616,782		242,710
Taxes		888,185		322,506		664,158		214,317
Security services		685,243		253,073		515,190		200,343
Electricity and communications		685,101		242,386		391,732		154,434
Other fees		581,803		218,436		374,740		145,233
Software		479,438		170,624		294,212		111,311
Advertising and publicity		246,163		103,237		168,231		80,667
Leases		139,012		38,122		225,481		87,606
Representation, travel and transportation expenses		116,362		43,369		83,267		30,007
Insurance		73,592		28,035		38,803		14,789
Stationery and office supplies		63,659		26,875		42,720		16,593
Hired administrative services		9,637		1,917		12,900		4,857
Other		263,169		93,756		213,335		82,399
		7,299,956		2,902,577		4,727,301		1,775,767

- 31 -

NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF SEPTEMBER 30, 2019

(Translation of Financial statements originally issued in Spanish – See Note 39)

(Figures expressed in thousands of Pesos)

21.

OTHER OPERATING EXPENSES

	09/30/2019				09/30/2018
Description	Accumulated from beginning of year up to 09/30/2019		Quarter ended 09/30/2019		Accumulated from beginning of year up to 09/30/2018		Quarter ended 09/30/2018
Turnover tax		5,800,916		2,115,079		4,065,287		1,600,066
Modification of financial assets (note 9)		2,565,560		2,565,560
For credit cards		2,161,742		848,551		1,415,244		548,200
Charges for other provisions		891,564		470,383		577,180		223,762
Taxes		876,428		142,261		738		251
Deposit guarantee fund contributions		357,285		135,168		214,647		81,721
Donations		107,537		35,825		67,681		20,097
Interest on the lease liability		62,700		25,169
Insurance claims		34,121		13,315		37,693		15,613
Loss from sale or impairment of investments in properties and other non financial assets		1,102
Other		830,479		285,225		661,274		203,286
		13,689,434		6,636,536		7,039,744		2,692,996

22.

ADDITIONAL DISCLOSURES IN THE STATEMENT OF CASH FLOWS

The statement of cash flows presents the changes in cash and cash equivalents derived from operating activities, investing activities and financing activities during the period. For the preparation of the statement of cash flows, the Bank adopted the indirect method for operating activities and the direct method for investment activities and financing activities.

The Bank considers as “Cash and cash equivalents” the item Cash and deposits in banks and those financial assets that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value.

For the preparation of the statement of cash flows the Bank considered the following:

Operating activities: the normal revenue-producing activities of the Bank as well as other activities that cannot qualify as investing or financing activities.

Investing activities: the acquisition, sale and disposal by other means of long-term assets and other investments not included in cash and cash equivalents.

Financing activities: activities that result in changes in the size and composition of the shareholders´ equity and liabilities of the Bank and that are not part of the operating or investing activities.

The table below presents the reconciliation between the item “Cash and cash equivalents” in the statement of cash flows and the relevant accounting items of the statement of financial position:

	09/30/2019		12/31/2018		09/30/2018		12/31/2017
Cash and deposits in banks		96,608,739		74,766,039		68,919,144		35,561,574
Debt securities at fair value through profit or loss								20,415
Other debt securities		56,048,693		55,674,674		34,909,558		20,009,665
Loans and other financing		287,792		189,042		204,484		93,871
		152,945,224		130,629,755		104,033,186		55,685,525

- 32 -

NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF SEPTEMBER 30, 2019

(Translation of Financial statements originally issued in Spanish – See Note 39)

(Figures expressed in thousands of Pesos)

23.

CAPITAL STOCK

The Bank’s subscribed and paid-in capital as of September 30, 2019, amounted to 639,398. Since December 31, 2016, the Bank’s capital stock has changed as follows:

	Capital stock issued and paid-in			Issued outstanding			In treasury
As of December 31, 2016		584,563			584,563
Capital stock increase as approved by Shareholders´ Meeting held on April 28, 2017 (1)		85,100			85,100
As of December 31, 2017		669,663			669,663
Own shares acquired (2)					(28,948	)		28,948
As of December 31, 2018		669,663			640,715			28,948
Own shares acquired (2)					(1,317	)		1,317
Capital stock decrease (3)		(30,265	)					(30,265	)
As of September 30, 2019		639,398			639,398

(1)

Related to the capital stock increase arising from (i) the issue of 74,000,000 new, common, registered Class “B” shares with a face value of Ps. 1, each one entitled to one vote, and entitled to dividends under the same conditions as common, registered Class “B” shares, outstanding upon issuance, formalized on June 19, 2017, and (ii) additionally, as established by the abovementioned Meeting, the international underwriters exercised the option to oversubscribe 15% of the capital stock which was formalized on July 13, 2017 through the issuance of 11,099,993 new, common, registered, Class “B” shares each one entitled to one vote and with a face value of Ps.1. On August 14, 2017, such capital increases were registered with the Public Registry of Commerce.

The public offering of the new shares was authorized by CNV Resolution No, 18,716 dated on May 24, 2017 and by the BCBA on May 26, 2017. As required by CNV regulations, it is advised that the funds arising from the public subscription of shares shall be used to finance its general business operations, to increase its borrowing capacity and leverage the potential acquisitions opportunities in the Argentine banking system.

(2)

Related to the repurchase of the Bank’s own shares under the programs established by the Bank’s Board of Directors on August 8, 2018, October 17, 2018 and December 20, 2018 with the purpose of reducing share price fluctuations, minimizing possible temporary imbalances between market supply and demand.

The Program dated on August 8, 2018, established, that the maximum amount of the investment amounted to 5,000,000 and the maximum numbers of shares to be acquired were equivalent to 5% of the capital stock. At the end of this program the Bank had acquired 21,463,005 common, registered, Class B shares with a face value of Ps. 1 each one entitled with one vote for an amount of 3,113,925.

The Program dated on October 17, 2018, established the start over of the repurchase of the Bank’s own shares, with the pending use of funds of the abovementioned Program, already expired. At the end of this program, the Bank had acquired 6,774,019 common, registered, Class B shares with a face value of Ps. 1 each one entitled with one vote for an amount of 995,786.

The Program dated on December 20, 2018, established that the maximum amount of the investment amounted to 900,000 and the maximum numbers of shares to be acquired were equivalent to 1% of the capital stock. At the end of this program the Bank had acquired 2,028,251 common, registered, Class B shares with a face value of Ps. 1 each one entitled with one vote for an amount of 298,196 of which, as of December 31, 2018 were settled 711,386 common shares for an amount of 98,353, and in January 2019 were settled 1,316,865 common shares for an amount of 199,843.

(3)

Related to capital stock decrease approved by the Shareholders’ Meeting of Banco Macro SA held on April 30, 2019 for an amount of 30,265, equivalent to 30,265,275 common, registered, Class B shares with a face value of Ps. 1 each one entitled with one vote, equivalent to all the own shares acquired as mentioned in section (2). On August 14, 2019 the Bank was notified that the capital stock decrease was registered at the Public Registry of Commerce.

- 33 -

NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF SEPTEMBER 30, 2019

(Translation of Financial statements originally issued in Spanish – See Note 39)

(Figures expressed in thousands of Pesos)

In addition, the Shareholders’ Meeting mentioned in section (3) approved to increase capital stock through the issuance of 15,662 common, registered, Class B shares with a face value of Ps. 1 each one entitled with one vote, due to the merger effects between Banco Macro SA and Banco del Tucumán SA (see additionally note 2.4). On October 29, 2019 the Bank was notified that the capital stock increase was registered at the Public Registry of Commerce.

24.

EARNINGS PER SHARE - DIVIDENDS

Basic earnings per share were calculated by dividing net profit attributable to common shareholders of the Bank by the weighted average number of common shares outstanding during the period.

To determine the weighted average number of common shares outstanding during the period, the Bank used the number of common shares outstanding at the beginning of the period adjusted, if applicable, by the number of common shares bought back or issued during the period multiplied by the number of days that the shares were outstanding in the period. Note 23 provides a breakdown of the changes in the Bank’s capital stock.

The calculation of basic earnings per share is disclosed in the table of Earnings per share included in the condensed consolidated interim statement of income.

Dividends paid and proposed

Cash dividends paid during the fiscal years 2018 and 2017 to the shareholders of the Bank amount to 3,348,315 and 701,476, respectively, which considering the number of shares outstanding to the date of effective payment represented 5 and 1.20 pesos per share, respectively.

The Shareholders’ Meeting held on April 30, 2019, resolved to distribute cash dividends for 6,393,978, which considering the number of shares outstanding at the date of such resolution, represented 10 pesos per share. These cash dividends were paid and were available on May 14, 2019.

25.

DEPOSIT GUARANTEE INSURANCE

Law No. 24485 and Decree No. 540/1995 created the Deposit Guarantee Insurance System, which was featured as a limited, compulsory and onerous system, aimed at covering the risks of bank deposits, as subsidiary and supplementary to the deposit privilege and protection system established under the Financial Entities Law. The above-mentioned legislation also provided for the incorporation of Sedesa with the exclusive purpose of managing the Deposit Guarantee Fund (DGF). Sedesa was incorporated in August 1995.

Banco Macro SA holds an 8.300% interest in the capital stock of Sedesa according to the percentages disclosed by BCRA Communiqué “B” 11816 on February 28, 2019.

All deposits in pesos and foreign currency placed in participating entities in the form of checking accounts, savings accounts, certificates of deposits or other forms of deposit that the BCRA may determine from time to time shall be subject to the abovementioned Deposit Guarantee Insurance System up to the amount of 1,000 which must meet the requirements provided for in Presidential Decree 540/1995 and other requirements that the regulatory authority may from time to time determine. On the other hand, the BCRA provided for the exclusion of the guarantee system, among others, any deposits made by other financial entities, deposits made by persons related to the Bank and securities deposits.

- 34 -

NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF SEPTEMBER 30, 2019

(Translation of Financial statements originally issued in Spanish – See Note 39)

(Figures expressed in thousands of Pesos)

26.

RESTRICTED ASSETS

As of September 30, 2019 and December 31, 2018, the following Bank’s assets are restricted:

Item	09/30/2019		12/31/2018
Debt securities at fair value through profit or loss and other debt securities
· Discount bonds in pesos regulated by Argentine legislation, maturing 2033 securing the sectorial Credit Program of the Province of San Juan. Production investment financing fund.		116,937		64,703
· Discount bonds in pesos regulated by Argentine legislation, maturing 2033 securing the regional economies Competitiveness Program – IDB loan No. 3174/OC-AR.		97,209		108,633
· Discount bonds in pesos regulated by Argentine legislation, maturing 2033 used as security in favor of Sedesa (1).		89,147		92,659
· Discount bonds in pesos regulated by Argentine legislation, maturing 2033 for minimum statutory guarantee account required for Agents to act in the categories contemplated under General Resolution No. 622/2013 of the CNV, as amended.		20,042		14,620
· Federal government treasury bonds in pesos, maturing 2021 for minimum statutory guarantee account required for Agents to act in the categories contemplated under General Resolution No. 622/2013 of the CNV		12,001		10,378
· Discount bonds in pesos regulated by Argentine legislation, maturing 2033 securing a IDB loan of Province of San Juan No. 2763/OC-AR.		2,610		6,609
Subtotal debt securities at fair value through profit or loss and other debt securities		337,946		297,602

Other financial assets
· Public and private securities. Shares in mutual funds for minimum statutory guarantee account required for Agents to act in the categories contemplated under General Resolution No. 622/2013 of the CNV	38,058	34,259
· Sundry debtors – Other	2,830	2,414
· Sundry debtors – attachment within the scope of the claim filed by the DGR against the City of Buenos Aires for differences on turnover tax.	827	827
Subtotal Other financial assets	41,715	37,500

Loans and other financing – non-financial private sector and foreign residents
· Interests derived from contributions made as contributing partner (2)	26,856	32,501
Subtotal loans and other financing	26,856	32,501

Financial assets delivered as a guarantee
· Special guarantee checking accounts opened in the BCRA for transactions related to the electronic clearing houses and similar entities.	7,102,389	5,719,689
· Forward purchase for repo transactions	2,544,289	182,448
· Guarantee deposits related to credit and debit card transactions.	723,404	747,487
· Other guarantee deposits	340,378	106,596
Subtotal Financial assets delivered as a guarantee	10,710,460	6,756,220

Other nonfinancial assets
· Real property related to a call option sold	244,374	73,006
Subtotal Other nonfinancial assets	244,374	73,006
Total	11,361,351	7,196,829

(1)

As replacement for the preferred shares of former Nuevo Banco Bisel SA to secure to Sedesa the price payment and the fulfillment of all the obligations assumed in the purchase and sale agreement dated May 28, 2007, maturing on August 11, 2021.

(2)

In order to keep tax benefits related to these contributions, they must be maintained between two and three years from the date they were made. They are related to the following risk funds: Risk fund of Los Grobo SGR and Risk fund of Avaluar SGR as of September 30, 2019 and December 31, 2018.

- 35 -

NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF SEPTEMBER 30, 2019

(Translation of Financial statements originally issued in Spanish – See Note 39)

(Figures expressed in thousands of Pesos)

27.

TRUST ACTIVITIES

The Bank is related to several types of trusts. The different trust agreements according to the business purpose sought by the Bank are disclosed below:

27.1.

Financial trusts for investment purposes

Debt securities include mainly prepayments towards the placement price of provisional trust securities of the financial trusts under public and private offerings (Consubond, Garbarino, Accicom, Secubono, Carfacil Agrocap and Red Surcos). The assets managed for these trusts are mainly related to securitizations of consumer loans. Trust securities are placed once the 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 an agreed-upon compensation. If after making the best efforts, such trust securities cannot be placed, the Bank will retain the definitive trust securities.

In addition, the Bank’s portfolio is completed with financial trusts for investment purposes, trust securities of definitive financial trusts in public and private offering (Consubond, Garbarino, Chubut Regalías Hidrocarburíferas, Secubono, Megabono and Credicuotas Consumos) and certificates of participation (Saenz Créditos, Gas Tucumán and Arfintech).

As of September 30, 2019 and December 31, 2018, debt securities and certificates of participation in financial trusts for investment purposes total 1,370,747 and 1,383,743, respectively.

According to the latest accounting information available as of the date of issuance of these condensed consolidated interim financial statements, the corpus assets of the trusts exceed the carrying amount in the related proportions.

27.2.

Trusts created using financial assets transferred by the Bank (securitization)

The Bank transferred financial assets (loans) to trusts for the purpose of issuing and selling securities for which collection is guaranteed by the cash flow resulting from such assets or group of assets. Through this way the funds that were originally used by the Bank to finance the loans are obtained earlier.

As of September 30, 2019 and December 31, 2018, considering the latest available accounting information as of the date of these condensed consolidated interim financial statements, the assets managed through Macro Fiducia SA (subsidiary) of this type of trusts amounted to 9,154 and 69,842, respectively.

27.3. Trusts guaranteeing 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 receive 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.

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 guarantee and all excess amounts as to the value of the obligations are reimbursed by the trustee to the debtor.

As of September 30, 2019 and December 31, 2018, considering the latest available accounting information as of the date of these condensed consolidated interim financial statements, the assets managed by the Bank amounted to 1,059,435 and 269,507, respectively.

- 36 -

NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF SEPTEMBER 30, 2019

(Translation of Financial statements originally issued in Spanish – See Note 39)

(Figures expressed in thousands of Pesos)

27.4.

Trusts in which the Bank acts as trustee (management)

The Bank, through its subsidiaries, performs management duties of the corpus assets directly according to the agreements, performing only 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.

Trusts usually manage funds derived from the activities performed by trustors, for the following main purposes:

Guaranteeing, 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.

Promoting the production development of the private economic sector at a provincial level.

Being a party to public work concession agreements granting road exploitation, management, keeping and maintenance.

As of September 30, 2019 and December 31, 2018, considering the latest available accounting information as of these condensed consolidated interim financial statements, the assets managed by the Bank amounted to 6,282,923 and 3,021,849, respectively.

28.

COMPLIANCE WITH CNV REGULATIONS

28.1 Compliance with CNV standards to act in the different agent categories defined by the CNV:

28.1.1 Operations of Banco Macro SA

Considering Banco Macro SA’s current operations, and according to the different categories of agents established by CNV rules (as per General Resolution No. 622/2013, as amended), the Bank is registered with this agency as agent for the custody of collective investment products of mutual funds (AC PIC FCI, for their acronyms in Spanish), comprehensive clearing and settlement agent and trading agent (ALyC and AN – comprehensive, for their acronyms in Spanish), financial trustee agent (FF, for its acronym in Spanish) and Guarantee Entity (in the process of being registered).

Additionally, the Bank’s shareholders’ equity exceeds the minimum amount required by this regulation, amounting to 21,000, as well as the minimum statutary guarantee account required of 12,000, which the Bank paid-in with government securities as described in note 26 and the cash deposits in BCRA accounts 000285 and 80285 belogning to the Bank.

28.1.2 Operations of Banco del Tucumán SA

Considering Banco del Tucumán SA’s current operations, and according to the different categories of agents established by CNV rules (as per General Resolution No. 622/2013, as amended), such Bank is registered with this agency under the following agent categories: mutual investment funds placement and distribution agent (ACyD FCI), and clearing and settlement agent and trading agent (ALyC and AN – Individual).

Additionally, the shareholders’ equity of this Subsidiary exceeds the minimum amount required by this regulation, amounting to 18,250, as well as the minimum statutary guarantee account required of 9,000, which the subsidiary paid-in with government securities.

- 37 -

NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF SEPTEMBER 30, 2019

(Translation of Financial statements originally issued in Spanish – See Note 39)

(Figures expressed in thousands of Pesos)

28.1.3 Operations of Macro Securities SA

Considering the current operations of this subsidiary, and according to the provisions established by CNV effective as of the approval of General Resolution No. 622/2013, as amended, issued by such agency, such Company is registered under the following categories: clearing and settlement agent, trading agent, comprehensive trading agent and mutual investment funds placement and distribution agent (ALyC, AN, AN – comprehensive and ACyD FCI).

Additionally, the shareholders’ equity of such Company exceeds the minimum amount required by this regulation, amounting to 18,125 and the minimum statutary guarantee account required of 9,000, which the Company paid-in with mutual fund shares.

28.1.4 Operations of Macro Fondos Sociedad Gerente de Fondos Comunes de Inversión SA

Considering the current operations of this subsidiary, and according to the provisions established by CNV effective as of the approval of General Resolution No. 622/2013, as amended, issued by such agency, such Company is registered as agent for the Administration of Collective Investment Products of Mutual Funds.

Additionally, the shareholders’ equity of this Company exceeds the minimum amount required by this regulation, amounting to 500 plus 100 per each additional mutual fund it administers, and the minimum statutary guarantee account amounting to 1,100 and is paid-in with mutual fund shares.

28.1.5 Operations of Macro Fiducia SA

Considering the current operations of this subsidiary and according to the provisions established by CNV effective as of the approval of General Resolution 622/2013, as amended, issued by such agency, such Company is registered as financial trustee agent and nonfinancial trustee agent.

Additionally, the shareholders’ equity of such Company exceeds the minimum amount required by this regulation, amounting to 6,000, and the minimum statutary guarantee account amounting to 3,000 and is paid-in with mutual fund shares.

28.2 Documents in custody

As a general policy, the Bank delivers for custody to third parties the documentary support of its aged accounting and management operations, i.e. those whose date is prior to the last fiscal year-end, except for the Inventory Book, in which aging is deemed to include those with a date prior to the two fiscal years ended. In compliance with CNV General Resolution No. 629 requirements, the Bank has placed (i) the Inventory Books for fiscal years ended through December 31, 2016 included, and (ii) certain documentation supporting the economic transactions for fiscal years ended through December 31, 2017, included, under the custody of the following companies: AdeA Administradora de Archivos SA (warehouse located at Ruta 36, km 31.5, Florencio Varela, Province of Buenos Aires) and ADDOC Administración de Documentos SA (warehouse located at Avenida Circunvalación Agustín Tosco with no number, Colectora Sur, between Puente San Carlos and Puente 60 blocks, Province of Córdoba and Avenida Luis Lagomarsino 1750, formerly Ruta 8 Km 51.200, Pilar, Province of Buenos Aires).

- 38 -

NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF SEPTEMBER 30, 2019

(Translation of Financial statements originally issued in Spanish – See Note 39)

(Figures expressed in thousands of Pesos)

28.3 As depositary of mutual funds

As of September 30, 2019 Banco Macro SA, in its capacity as depositary company, holds in custody the shares in mutual funds subscribed by third parties and assets from the following mutual funds (see Note 32):

Fund	Number of shares		Equity
Pionero Pesos		543,325,701		3,286,888
Pionero Renta Ahorro		248,194,202		2,476,876
Pionero F F		28,005,176		276,186
Pionero Renta		3,616,039		62,601
Pionero Acciones		9,035,734		186,926

Pionero Renta Plus	579,538	17,040
Pionero Empresas FCI Abierto Pymes	212,751,153	800,488
Pionero Pesos Plus	1,490,632,351	5,807,347
Pionero Renta Ahorro Plus	152,482,483	326,679
Pionero Renta Mixta I	12,559,243	19,426
Pionero Renta Mixta II	26,374	50
Pionero Renta Estratégico	555,014,792	693,028
Pionero Renta Capital	50,000	50
Pionero Argentina Bicentenario	303,922,049	334,263
Pionero Ahorro Dólares	22,531,498	1,039,916
Pionero Renta Global	50,000	2,878
Pionero Renta Fija Dólares	7,408,309	271,533
Argenfunds Renta Pesos	572,305,489	1,737,523
Argenfunds Renta Argentina	16,690,107	67,545
Argenfunds Ahorro Pesos	104,506,535	566,715
Argenfunds Renta Privada FCI	30,998,946	212,755
Argenfunds Abierto Pymes	186,558,376	252,102
Argenfunds Renta Total	865,652,641	2,445,801
Argenfunds Renta Flexible	330,816,302	765,085
Argenfunds Renta Dinámica	148,073,349	242,962
Argenfunds Renta Mixta	45,839,132	59,669
Argenfunds Renta Global	22,413,248	46,440
Argenfunds Renta Capital	20,702,205	1,208,280
Argenfunds Renta Balanceada	48,349,892	96,188
Argenfunds Liquidez	2,753,552,134	3,189,393
Argenfunds Retorno Absoluto	429,841,277	400,398
Argenfunds Renta Crecimiento	598,949	30,856
Argenfunds Renta Mixta Plus	3,000	158
Argenfunds Renta Variable	100,000	90

- 39 -

NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF SEPTEMBER 30, 2019

(Translation of Financial statements originally issued in Spanish – See Note 39)

(Figures expressed in thousands of Pesos)

29.

ACCOUNTING ITEMS THAT IDENTIFY THE COMPLIANCE WITH MINIMUM CASH REQUIREMENTS

The items recognized by the Bank to constitute the minimum cash requirement effective for September 2019 are listed below, indicating the amounts as of month-end of the related items:

Description	Banco Macro SA		Banco del Tucumán SA
Cash and deposits in banks
Amounts in BCRA accounts		51,852,760		3,114,519

Other debt securities
BCRA Internal Bills computable for the minimum cash requirements		23,320,035		378,783
Government securities computable for the minimum cash requirements		8,891,911

Financial assets delivered as guarantee
Special guarantee accounts with the BCRA		6,269,481		832,908
Total		90,334,187		4,326,210

30.

PENALTIES APPLIED TO THE FINANCIAL ENTITY AND SUMMARY PROCEEDINGS INITIATED BY THE BCRA

BCRA Communiqué “A” 5689, as supplemented and amended, requires financial institutions to disclose in their financial statements certain information regarding summaries and penalties received from certain regulatory authorities, regardless of the amounts involved and the final conclusions of each case.

- 39 -

NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF SEPTEMBER 30, 2019

(Translation of Financial statements originally issued in Spanish – See Note 39)

(Figures expressed in thousands of Pesos)

Next follows a description of the situation of Banco Macro SA and Banco del Tucumán SA as of September 30, 2019:

Banco Macro SA

Summary proceedings filed by the BCRA

Financial summary proceedings: No. 1496 dated 02/24/2016.

Reason: control observations over subsidiaries.

Proceeding filed against: Banco Macro SA and the Members of the Board of Directors (Jorge Horacio Brito, Delfín Jorge Ezequiel Carballo, Jorge Pablo Brito, Marcos Brito, Juan Pablo Brito Devoto, Luis Carlos Cerolini, Carlos Enrique Videla, Alejandro Macfarlane, Guillermo Eduardo Stanley, Constanza Brito and Emanuel Antonio Alvarez Agis).

Status: pending resolution before the BCRA. On 04/07/2016, we filed the defenses and evidence. On 05/18/2016 we requested on behalf of Mr. Delfín Jorge Ezequiel Carballo the resolution of the motion for lack of standing to be sued. As of the date, it is pending resolution.

Penalties imposed by the BCRA

Financial summary proceedings: No. 1401 dated 08/14/2013.

Reason: alleged failure in financing to the nonfinancial public sector, for temporary overdrafts through checking accounts of the Municipality of Córdoba and Reconquista. Penalty amount: 2,400.

Proceeding filed against: Banco Macro SA and the members of the Board (Jorge Horacio Brito, Jorge Pablo Brito and Marcos Brito).

Status: on 03/02/2015 the BCRA passed Resolution No. 183/15 imposing fines to the Bank. Therefore and against such resolution, a direct appeal was filed to the CNACAF. Courtroom IV of the CNACAF sustained the appeal filed by the Bank and annulled the decision imposing the fines to the Bank. Consequently, the BCRA filed a federal extraordinary appeal, which was dismissed. Finally, BCRA lodged a motion for reconsideration of dismissal of the extraordinary appeal with the CSJN, which is still pending resolution.

Penalties imposed by the Financial Information Unit (UIF)

File: No. 62/2009 dated 01/16/2009.

Reason: observations on the purchase of foreign currency from April 2006 through August 2007. Penalty amount: 718.

Penalty imposed on: Banco Macro SA and those in charge of anti-money laundering regulation compliance (Juan Pablo Brito Devoto and Luis Carlos Cerolini).

Status: the UIF passed Resolution No. 72/2011 on 06/09/2011, imposing fines to those responsible. After successive remedies filed by the Bank, part of the fines were dismissed in relation to statute-barred periods, and the decision became final on June 25, 2019; therefore, the case file will be submitted to the UIF to readjust fines to the open period.

File: No. 248/2014 (UIF Note Presidency 245/2013 11/26/2013) dated 07/30/2014.

Reason: alleged deficiencies in preparing certain “Reports on suspicious transactions (ROS)” due to cases of infringement detected in certain customer files. Penalty amount: 330.

Penalty imposed on: Banco Macro SA, the members of the Board and those in charge of anti-money laundering regulation compliance (Luis Carlos Cerolini – both as Compliance Officer and Director - and Jorge Horacio Brito, Delfín Jorge Ezequiel Carballo, Juan Pablo Brito Devoto, Jorge Pablo Brito, Alejandro Macfarlane, Carlos Enrique Videla, Guillermo Eduardo Stanley, Constanza Brito, Emanuel Antonio Alvarez Agis, Marcos Brito and Rafael Magnanini –as Directors of Banco Macro SA).

Status: on 12/26/2016 the UIF passed Resolution No. 164/16 imposing fines on those responsible and issuing a favorable decision on the plea of lack of capacity to be sued lodged by Messrs. Carballo and Magnanini. Against such resolution, the Bank and the individual responsibles filed direct appeals, which will be decided at Room III of the CNACAF. Such appeals were dismissed through a final sentence dated 07/18/2019. The term to file the federal extraordinary appeal against such resolution is already running. On 08/15/2019, the Bank filed a federal extraordinary appeal which was dismissed through resolution dated 09/26/2019. Against such resolution, on 10/03/2019 the Bank filed an appeal to Argentine Supreme Court.

Although the above described penalties do not involve material amounts, as of the date of issuance of these condensed consolidated interim financial statements, the total amount of monetary penalties received, pending payment due to any appeal lodged by the Bank, amounts to 718 and was recognized according to the BCRA Communiqués “A” 5689 and 5940, as amended and supplemented.

- 40 -

NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF SEPTEMBER 30, 2019

(Translation of Financial statements originally issued in Spanish – See Note 39)

(Figures expressed in thousands of Pesos)

Additionally, there are pending summary proceedings before the CNV and the UIF, as described below:

File: No. 1480/2011 (CNV Resolution No. 17529) dated 09/26/2014.

Reason: potential noncompliance with the obligation to inform a “Significant Event”.

Persons subject to summary proceedings: Banco Macro SA, the members of the Board, the regular members of the Statutory Audit Committee and the person/s responsible for market relations (Jorge Horacio Brito, Delfín Jorge Ezequiel Carballo, Juan Pablo Brito Devoto, Jorge Pablo Brito, Luis Carlos Cerolini, Roberto Julio Eilbaum, Alejandro Macfarlane, Carlos Enrique Videla, Guillermo Eduardo Stanley, Constanza Brito, Daniel Hugo Violatti, Ladislao Szekely, Santiago Marcelo Maidana and Herman Fernando Aner).

Status: on 10/28/2014 the Bank and the persons involved filed their defenses offering evidence and requesting their acquittal. On 08/03/2015 the term to produce evidence was closed and on 08/19/2015 the defendants lodged their memorials. To the date hereof this action is still pending resolution.

File: 2577/2014 (CNV Resolution No. 18863) dated 07/20/2017.

Reason: potential noncompliance with de provisions of section 59, Law 19550, and paragraph 1 of Chapter 6 Section 19 of Article IV of Chapter II of CNV Rules (Revised 2013, as amended) in force at the time of the issues under analysis.

Persons subject to summary proceedings: Banco Macro SA, in its capacity as custody agent of collective investment products of mutual funds, regular directors and regular members of the Statutory Audit Committee (Jorge Horacio Brito, Delfín Jorge Ezequiel Carballo, Jorge Pablo Brito, Marcos Brito, Juan Pablo Brito Devoto, Luis Carlos Cerolini, Federico Pastrana, Carlos Enrique Videla, Alejandro Macfarlane, Guillermo Eduardo Stanley, Constanza Brito, Emmanuel Antonio Alvarez Agis, Alejandro Almarza, Carlos Javier Piazza and Vivian Haydee Stenghele).

Status: On May 22, 2019, the CNV (Argentine Securities Commission) issued Resolution No. 80/2019, whereby a warning penalty was imposed on the persons subject to the summary proceedings (except for Delfín J. E. Carballo and Federico Pastrana, as to whom the lack of capacity to be sued was sustained). On June 7, 2019, the Bank, its directors and statutory auditors filed a direct remedy requesting the abrogation of the penalty. The case file is still pending submission to the Federal Civil and Commercial Court of Appeals in and for the City of Buenos Aires. The file was submitted to the Federal Civil and Commercial Court of Appeals, which issued the resolution for the commencement of proceedings on 19/09/2019. To date, no notice of direct appeal was served upon the CNV.

File: No. 137/2015 (UIF Resolution No. 136/2017) dated 12/19/2017.

Reason: alleged breach to the contents of the Code of Procedure applicable to Anti-money Laundering and Terrorism Financing as Settlement and Clearing Agent at the time of an inspection of the CNV and to the Internal Audit Process referred to in its capacity as comprehensive settlement and clearing agent (UIF Resolution No. 229/2011, as amended).

Persons subject to summary proceedings: Banco Macro SA, members of the Management Body during the period that is the subject matter of these summary proceedings (Jorge Horacio Brito, Jorge Pablo Brito, Juan Pablo Brito Devoto, Constanza Brito, Marcos Brito, Delfín Jorge Ezequiel Carballo, Delfín Federico Ezequiel Carballo, Carlos Enrique Videla, Alejandro Macfarlane, Guillermo Eduardo Stanley, Emmanuel Antonio Alvarez Agis, Nicolás Alejandro Todesca, Carlos Alberto Giovanelli, José Alfredo Sanchez, Martín Estanislao Gorosito, Roberto Julio Eilbaum, Mario Luis Vicens, Nelson Damián Pozzoli, Luis María Blaquier, Ariel Marcelo Sigal, Alejandro Eduardo Fargosi, Juan Martin Monge Varela and Luis Cerolini in his double capacity as Compliance Officer and member of the Management Body).

Status: on 04/23/2019, UIF passed Resolution No. 41, whereby it imposed fines to responsibles. Against such resolution, the Bank, its Board of Directors and its Statutory audits filed a direct appeal on 06/12/2019, requesting a repeal of the penalty imposed. Such appeal is in process at CNACAF. The file was submitted to Courtroom IV of CNACAF that received the proceedings on 06/21/2019. To date, no notice was served to the UIF.

File: No. 1208/2014 (UIF Resolution No. 13/2016) dated 1/15/2016.

Reason: alleged failure to comply with the Anti-Money Laundering Law, as amended, and UIF Resolution No. 121/11.

Persons subject to the summary proceedings: Banco Macro SA, Jorge Horacio Brito, Delfín Jorge Ezequiel Carballo, Juan Pablo Brito Devoto, Jorge Pablo Brito, Luis Carlos Cerolini, Alejandro Macfarlane, Carlos Enrique Videla, Guillermo Eduardo Stanley, Constanza Brito, Marcos Brito and Emmanuel Antonio Álvarez Agis.

- 41 -

NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF SEPTEMBER 30, 2019

(Translation of Financial statements originally issued in Spanish – See Note 39)

(Figures expressed in thousands of Pesos)

Status: on 05/17/2019 UIF passed resolution No. 13/2016, whereby it filed the summary proceedings related with observations over an overall inspection performed by BCRA. On 06/15/218, the responsibles filed their defenses. On 7/2/2018, the UIF sustained the lack of capacity to be sued of Delfín Jorge Ezequiel Carballo, discarding his responsibility in this summary proceeding. The proceedings were opened to the production of evidence and closing of the evidence stage; on September 2018 the defendants lodged their memorial. As of the date, is pending to issue an administrative resolution.

File: No. 379/2015 (UIF Resolution No. 96/2019) dated 09/17/2019

Reason: alleged failure to comply with the Anti-Money Laundering Law, as amended, and UIF Resolution No. 121/11.

Persons subject to the summary proceedings: Banco Macro SA, Jorge Horacio Brito, Delfín Jorge Ezequiel Carballo, Jorge Pablo Brito, Marcos Brito, Juan Pablo Brito Devoto, Carlos Enrique Videla, Alejandro Macfarlane, Guillermo Eduardo Stanley, Emanuel Antonio Alvarez Agis, Constanza Brito and Luis Carlos Cerolini.

Status: On 10/02/2019, Banco Macro SA and the individual responsables were passed of the initiation of the proceedings. As of the date is pending to file the defenses.

Files ended during the period

BCRA financial summary proceedings No. 1380 dated 03/11/2013: alleged excess in the assets used for guarantee purposes, with effects on related statutory operation ratios; alleged failure to fulfill with the limitations of deposit increase, book records observations, neglect to present the corresponding accounting disclosure of such excess and failures according to Bank’s requirements. ). On 06/19/2019, the CSJN decided to dismiss the appeal, ending the fine imposed by the Central Bank for an amount of 2,000.

Banco del Tucumán SA

Files ended during the period

Financial Summary Proceedings of BCRA No. 1349 dated 09/07/2012: alleged breach of the provisions of Communiqué “A” 3054, OPRAC 1-476, Exhibit, Article 2, section 2.1 and Article 3, section 3.1.2.; and Communiqué “A” 4798, OPRAC 1-613, Exhibit, Article 4, section 41., regarding the financing to the nonfinancial public sector, for the acquisition of secured loans without the appropriate authorization by the BCRA. On 06/13/2019 the Courtroom IV of CNACAF issued a new resolution, whereby decided to dismissed the unconstitutionality request, thus it became final for an amount of 1,440.

31.

CORPORATE BONDS ISSUANCE

The corporate bond liabilities recorded by Banco Macro SA in these condensed consolidated interim financial statements amount to:

Corporate Bonds	Original value			Residual face value as of 09/30/2019		09/30/2019		12/31/2018
Subordinated Resettable – Class A	USD	400,000,000	(a.1)	USD	400,000,000		23,726,491		15,288,390

Nonsubordinated – Class B	Ps.	4,620,570,000	(a.2)	Ps.	3,391,052,000		3,076,448		3,460,899

Nonsubordinated – Class C	Ps.	3,207,500,000	(a.3)	Ps.	3,207,500,000		2,931,790		2,916,412

Total							29,734,729		21,665,701

a.1) On April 26, 2016, the general regular shareholders’ meeting approved the creation of a Global Program for the Issuance of Medium-Term Debt Securities, in accordance with the provisions of Law No. 23,576, as amended and further applicable regulations, up to a maximum amount outstanding at any time during the term of the program of USD 1,000,000,000 (one billion US dollars), or an equal amount in other currencies, under which it is possible to issue simple corporate bonds, not convertible into shares in one or more classes. Also, on April 28, 2017, the General and Special Shareholder’ Meeting resolved to extend the maximum amount of the abovementioned Global Program up to USD 1,500,000,000 (one thousand five hundred million US dollars).

- 42 -

NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF SEPTEMBER 30, 2019

(Translation of Financial statements originally issued in Spanish – See Note 39)

(Figures expressed in thousands of Pesos)

On November 4, 2016, under the abovementioned Global Program, Banco Macro SA issued Subordinated Resettable Corporate Bonds, class A, at a fixed rate of 6.750% p.a. until reset date, fully amortizable upon maturity (November 4, 2026) for a face value of USD 400,000,000 (four hundred million US dollars), under the terms and conditions set forth in the pricing supplement dated October 21, 2016. Interest is paid semiannually on May 4 and November 4 of every year and the reset date will be November 4, 2021. Since reset date, these Corporate Bonds will accrue a benchmark reset rate plus 546.3 basis points, according to the abovementioned terms and conditions.

In addition, the Bank has the option to fully redeem the issuance as the reset date and under the conditions established in the pricing supplement after that date. The Bank used the funds derived from such issuance to grant loans in accordance with BCRA guidelines.

a.2) On May 8, 2017, under the Global Program mentioned on item a.1), Banco Macro SA issued non-subordinated simple corporate bonds Class B not convertible into shares, at a fixed rate of 17.50%, fully amortizable upon maturity (May 8, 2022) for a face value of pesos 4,620,570,000 equivalent to USD 300,000,000 (three hundred million US dollars), under the terms and conditions set forth in the price supplement dated April 21, 2017. Interest is paid semiannually on November 8 and May 8 of every year, beginning on November 8, 2017.

In addition, the Bank may fully redeem the issuance for tax matters, but not partially. The Bank used the funds derived from such issuance to grant loans in accordance with BCRA guidelines.

On October 17, 2018 the Board of Directors decided to pay off these corporate bonds for a face value of 1,229,518,000, equivalent to the amount of purchases made to that date.

As of the date of issuance of these condensed consolidated interim financial statements, the Bank made purchases of this issuance for a face value of pesos 501,861,000, with a remaining outstanding face value of 2,889,191,000. Additionally, on October 16, 2019, the Board of Directors decided to pay off these corporate bonds for the amount of the purchases made.

a.3) On April 9, 2018, under the Global Program mention on item a.1), Banco Macro SA issued non subordinated simple corporate bonds Class C, for a face value of pesos 3,207,500,000, at an annual variable rate equivalent to the sum of (i) Badlar private rate applicable for the related accrued period; plus (ii) applicable margin of 3.5% p.a., fully amortizable upon maturity (April 9, 2021). Interest will be paid quarterly for the periods due on July 9, October 9, January 9 and April 9 of every year, beginning on July 9, 2018.

In addition, the Bank may fully redeem the issuance for tax matters, but not partially. The Bank used the funds derived from such issuance to grant loans in accordance with BCRA guidelines.

As of the date of issuance of these condensed consolidated interim financial statements, the Bank made purchases of this issuance for a face value of 750,500,000, with a remaining outstanding face value of pesos 2,457,000,000. Additionally, on October 16, 2019, the Board of Directors decided to pay off these corporate bonds for the amount of the purchases made.

The Shareholder´s Meeting held on April 27, 2019, resolved to increase the maximum amount of the Global Program for the Issuance of Corporate Bonds for a face value from USD 1,500,000,000 to USD 2,500,000,000 or an equal amount in other currencies, as determinated by the Board of Directors in due time. During the meeting held on April 10, 2019 the Board of Directors decided to use the maximum amount of the Global Program for the Issuance of Corporate Bonds approved on April 27, 2018, i.e., U$S 1,000,000,000 (one billon US dollars) or an equal amount in other currencies or value units, for the issuance of Corporate Bonds under CNV frequent system.

- 43 -

NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF SEPTEMBER 30, 2019

(Translation of Financial statements originally issued in Spanish – See Note 39)

(Figures expressed in thousands of Pesos)

32.

OFF BALANCE SHEET TRANSACTIONS

In addition to note 4, the Bank recognizes different off balance sheet transactions, pursuant to the BCRA standards. Below are the amounts of the main off Balance sheet transactions as of September 30, 2019 and December 31, 2018:

Item	09/30/2019		12/31/2018
Custody of government and private securities and other assets held by third parties		88,727,794		80,052,243

Preferred and other collaterals received from customers (1)		48,794,761		45,544,953

Outstanding checks not paid yet		7,464,278		3,353,434

Checks already deposited and pending clearance		3,195,373		1,680,896

(1)

Related to collaterals used to secure loans transactions and other financing, under the applicable rules in force in this matter.

33.

TAX AND OTHER CLAIMS

33.1.

Tax claims

The AFIP and tax authorities of the relevant jurisdictions have reviewed the tax returns filed by the Bank related to income tax, minimum presumed income tax and other taxes (mainly turnover tax). As a result, there are claims pending at court and/or administrative levels, either subject to discussion or appeal. The most significant claims are summarized below:

AFIP’s challenges against the income tax returns filed by former Banco Bansud SA (for the fiscal years since June 30, 1995, through June 30, 1999, and of the irregular six-month period ended December 31, 1999) and by former Banco Macro SA (for the fiscal years ended since December 31, 1998, through December 31, 2000).

The matter under discussion that has not been resolved as yet and on which the regulatory agency bases its position is the impossibility of deducting credits that have collateral security, an issue that has been addressed by the Federal Administrative Tax Court and CSJN in similar cases, which have issued resolutions that are favorable to the Bank’s position.

Ex-officio turnover tax assessments in progress and/or adjustments pending resolution by the tax authorities of certain jurisdictions.

Pursuant to section 2, Presidential Decree No. 814/01, the Bank began applying the 17% rate instead of the 21% rate to settle payroll taxes as from November 2012. According to such presidential decree, the contributions made by private sector employers and by those governed by section 1, Law No. 22,016, would be taxable at a single and reduced 16% rate (subsequently, 17%).

The Bank was included in the scope of the abovementioned presidential decree merely due to the state’s interest governed by General Business Associations Law No. 19,550 and based on the clarifications included subsequently in Tax Reform Law No. 27,430. The Argentine Government has an interest on the Bank through the ANSES-FGS (Sustainability Guarantee Fund), as a result of the nationalization of funds from AFJPs (private pension fund managers) in 2008. As of September 30, 2019, such interest represents 27.49% of the capital stock of Banco Macro S.A. and, by exercising its voting rights, it managed to appoint the members of the Board of Directors and the Statutory Audit Committee.

On February 20, 2018, the AFIP (Federal Public Revenue Agency) required Banco Macro to clarify the reasons for using such reduced rate. On March 14, 2018, the Bank provided a detailed explanation ratifying its position.

After different procedures and the submission of factual and legal grounds, as the Bank is allowed to do by law, the AFIP submitted the case file for consultation to the Ministry of Economy, which in turn submitted it to the Argentine Attorney General’s Office on April 3, 2019, to request its participation in its capacity as the superior authority of the body of Argentine Government’s attorneys and legal services for federal public administration, where the case file is lodged as of the date of issuance of the accompanying condensed consolidated financial statements.

- 44 -

NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF SEPTEMBER 30, 2019

(Translation of Financial statements originally issued in Spanish – See Note 39)

(Figures expressed in thousands of Pesos)

Even though the Argentine Attorney General’s Office has issued no resolution in this regard as of the date of the accompanying interim condensed consolidated financial statements, the Bank decided to join the installment-payment plan from November 2012 through March 2019, pursuant to AFIP General Resolution No. 4477/2019. The plan offered 60 installments, an interest rate that is significantly lower than current rates applicable to tax or social security obligations and a material fine reduction. This entailed an economic and financial benefit for the Bank because, in connection with the settlement of the abovementioned social security payables and even within the context of appeals against resolutions affecting its rights, it would have required the full payment of the periods challenged –potentially obtaining the reimbursement of the amounts paid– at a 6% annual nominal rate, in accordance with the legal framework then effective.

The Bank’s Management and its legal counsel consider no further significant accounting effects could arise from the final outcome of the above-mentioned proceedings other than those disclosed in these condensed consolidated interim financial statements.

33.2.

Other claims

In addition, before merging with and into the Bank, Banco Privado de Inversiones SA (BPI) had a pending class action styled “Adecua v. Banco Privado de Inversiones on ordinary proceedings”, File No. 19073/2007, pending with Commercial Court No. 3 in and for the City of Buenos Aires, Clerk’s Office No. 5, whereby it was required to reimburse to its clients the life insurance amounts overcharged to amounts payable, as well as to reduce the amounts charged in this regard in the future; this legal proceeding was concluded upon the abovementioned merger because BPI complied in full with the terms of the court-approved agreement reached with Adecua before answering the complaint. However, in March 2013, when BPI had already been merged with and into the Bank, the trial court resolved to amend the terms of the agreement and ordered the reimbursement of amounts of money to a larger number of clients as compared to the number arising from the terms approved by the court in due time. Such resolution was appealed by the Bank as BPI’s surviving company. The appeal was dismissed by the Court of Appeals, which abrogated both the trial court decision and the court-approved agreement, thus ordering the Bank to answer the complaint. This gave rise to the filing of an extraordinary appeal against such decision, as well as the subsequent filing of a complaint for the extraordinary appeal denied. It is currently pending with the Argentine Supreme Court.

Moreover, the Bank is also subject to three class actions initiated by consumers’ associations for the same purpose: a) Adecua v, Banco Macro on ordinary proceedings, File No. 20495/2007, pending with Commercial Court No.7 in and for the City of Buenos Aires, Clerk’s Office No. 13; b) Damnificados Financieros Asociación Civil Para Su Defensa et al v, Banco Macro on summary proceedings, File No. 37729/2007, pending with Commercial Court No. 7 in and for the City of Buenos Aires, Clerk’s Office No. 13; c) Unión de Usuarios y Consumidores v. Nuevo Banco Bisel on ordinary proceedings, File No. 44704/2008, pending with Commercial Court No. 26 in and for the City of Buenos Aires, Clerk’s Office No. 52.

There are also other class actions initiated by consumer protection associations in relation to the collection of certain commissions and/or financial charges or practices and certain withholdings made by the Bank to individuals as Buenos Aires City stamp tax withholding agent.

Furthermore, there is a case challenging the Bank for charging credit card users until December 2014 a commission for “purchase limit excess” that consisted of a percentage over the purchase limit excess amount. It is styled “User and Consumer Union et. al v. Banco Macro SA on summary proceedings” [Unión de Usuarios y Consumidores y otro c/ Banco Macro SA s/ Sumarísimo], file No. 31958/2010, pending with Commercial Court No. 1 in and for the City of Buenos Aires, Clerk’s Office No 1. On 03/15/2019 a court order was passed against the Bank from a trial court that ordered the reimbursement for all the collected amounts plus VAR and interest. Although this court decision was appealed, the Entity understands that there is a low probability that a favorable ruling shall be obtained from the trial court, as the Entity became aware that the Court of Appeals approved related actions against other two banks. The terms are currently suspended, and a negotiation stage was opened.

- 45 -

NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF SEPTEMBER 30, 2019

(Translation of Financial statements originally issued in Spanish – See Note 39)

(Figures expressed in thousands of Pesos)

34.

RESTRICTION ON DIVIDENDS DISTRIBUTION

According to BCRA regulations, 20% of Banco Macro SA income for the year plus/less prior-year adjustments and less accumulated losses as for the prior year-end, if any, should be allocated to the legal retained earnings.

Pursuant to Law No. 25,063, dividends to be distributed in cash or in kind in excess of taxable income accumulated at the end of the fiscal year immediately preceding the payment or distribution date shall be subject to a 35% income tax withholding as a single and definitive payment. For this purpose, income to be considered in each year will result from adding dividends or earnings from other corporations not computed in the calculation of those earnings in the same tax period(s) to the earnings determined under application of Income Tax Law, and deducting the tax paid for the tax period(s) in which the earnings, or the related proportional amount, being distributed were generated. This withholding shall not be applicable to earnings distributions accrue in the fiscal years beginning as of January 1, 2018.

Through BCRA rules related to Earnings distribution of financial entities, the BCRA establishes the general procedure to distribute earnings. According to that procedure, earnings may only be distributed if certain circumstances are met such as no records of financial assistance from the BCRA due to illiquidity or shortages in payments of minimum capital or minimum cash requirement deficiencies and not being subject to the provisions of sections 34 and 35 bis of the Financial Entities Law (sections dealing with tax payment and restructuring agreements and reorganization of the Bank), among other conditions listed in the abovementioned communiqué that must be met. In addition, as established by the BCRA, the earnings distribution approved by the Shareholders’ Meeting of the Bank could only be formalized once the Superintendence of Financial and Foreign Exchange Institutions assesses the potential effects of the application of IFRS according to Communiqué “A” 6430 (section 5.5 IFRS 9 “Impairment”) and the restatement of financial statements according to Communiqué “A” 6651.

Profits may only be distributed if the financial entity has positive results, after deducting, on a nonaccounting basis, from retained earnings and the optional reserves for the future distribution of profits, (i) the amounts of the legal and other earnings reserves which are mandatory, (ii) all debit amounts of each one of the accounting items recognized in “Other Comprehensive Income”, (iii) income from of the revaluation of property, plant and equipment, intangible assets and investment property, (iv) the positive net difference between the amortized cost and the fair value of government debt instruments and/or monetary regulation instruments issued by the BCRA for those instruments recognized at amortized cost, (v) the adjustments identified by the Superintendence of Financial and Exchange Entities of the BCRA or by the independent external auditor and that have not been recognized in the accounting records and (vi) certain franchises granted by the BCRA. Additionally, no profit distributions shall be made out of the profit originated as a result of the first-time application of the IFRS, which shall be recognized in a special reserve, which as of September 30, 2019 amounted to 3,475,669 and is recognized in unappropriated retained earnings.

Pursuant to CNV General Resolution No. 593, the Shareholders’ Meeting in charge of analyzing the annual financial statements will be required to decide on the application of the Bank’s retained earnings, such as the actual distribution of dividends, the capitalization thereof through the delivery of bonus shares, the creation of earnings reserves additional to the Legal earnings retained or a combination of any of these applications.

35.

CAPITAL MANAGEMENT, CORPORATE GOVERNANCE TRANSPARENCY POLICY AND RISK MANAGEMENT

As financial institutions, Banco Macro SA and Banco del Tucumán SA are governed by the Financial Entities Law No. 21,526, as supplemented, and the regulations issued by the BCRA and are exposed to intrinsic risks related to the financial industry. Moreover, they adhere to the good banking practices laid out in BCRA Communiqué “A” 5201 (Financial Entities Corporate Governance Guidelines) as supplemented. Detailed explanations about the main aspects related to capital management and corporate governance transparency policy and risk management related to the Bank, are disclosed in note 39 to the consolidated financial statements as of December 31, 2018, already issued.

- 46 -

NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF SEPTEMBER 30, 2019

(Translation of Financial statements originally issued in Spanish – See Note 39)

(Figures expressed in thousands of Pesos)

Additionally, the table below shows the minimum capital requirements measured on a consolidated basis, effective for the month of September 2019, together with the integration thereof (computable equity) as of the end of such month:

Description	09/30/2019
Minimum capital requirements		26,748,307
Computable equity		86,793,393
Capital surplus		60,045,086

36.

ADDITIONAL DISCLOSURES

The table below shows the amounts corresponding to the detail of Government and private debt securities as of September 30, 2019 and December 31, 2018.

Description	09/30/2019		12/31/2018
Debt securities at fair value through profit or loss
Government debt securities		752,788		1,242,849
Private securities		742,961		1,392,398
Total debt securities at fair value through profit or loss		1,495,749		2,635,247

Other debt securities
At fair value through OCI
Government securities		380,362		758,909
Central Bank internal bills		54,897,859		55,069,908
Government securities – Foreign		1,150,834		604,766
Total at fair value through OCI		56,429,055		56,433,583
At amortized cost
Government securities (see notes 9 and 37)		16,688,510		8,148,427
Private securities		3,452,515		2,749
Total at amortized cost		20,141,025		8,151,176
Total other debt securities		76,570,080		64,584,759
Equity instruments
At fair value through profit or loss		1,512,249		51,518
Total equity instruments		1,512,249		51,518

37.

CHANGES IN THE ARGENTINE MACROECONOMIC ENVIRONMENT OF THE FINANCIAL AND CAPITAL MARKETS

The international and local macroeconomic context generates a certain degree of uncertainty regarding its future progress as a result of the financial assets and foreign exchange market volatility and, additionally certain political events and the level of economic growth, among other issues.

Particularly at a local level, as a step prior to general elections held on October 27, 2019, on Sunday August 11, 2019, the PASO (open primary election) was held, with an adverse outcome for the official party. On Monday August 12, there was a very significant general decrease in the market values of Argentine government and private financial instruments, and the country-risk premium and the US dollar value increased significantly. During the week following the election, the Argentine Government adopted a series of economic measures to lessen the effects of volatility on population in general, while the benchmark interest rate remained at high levels according to the contraction monetary policy applied by the BCRA.

On August 28, 2019, the Federal Executive issued Presidential Decree No. 596/2019, which established payment obligations in relation to Argentine short-term public debt securities (Letes, Lecaps, Lelinks and Lecer), to be settled following a schedule. The effects and payment schedule are detailed in note 9.

Apart from the term extension in relation to the securities previously mentioned, the Federal Executive sent a bill to the Argentine Congress to incorporate into government securities under the Argentine legislation class action clauses to allow for an orderly reprofiling of maturity dates, similarly to the securities under foreign legislation. As of the date of issuance of these financial statements, such bill was not approved by the Argentine Congress.

- 47 -

NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF SEPTEMBER 30, 2019

(Translation of Financial statements originally issued in Spanish – See Note 39)

(Figures expressed in thousands of Pesos)

Subsequently, on September 1, 2019, through Presidential Decree No. 609/2019 and BCRA Communiqué “A” 6770, certain restrictions were imposed on the foreign exchange market with different scopes and specifications for natural and artificial persons, including the acquisition of foreign currency for hoarding, transfers abroad and foreign trade transactions, among other matters.

Finally, on October 27, 2019, the general presidential election was held, resulting in the defeat of the official party; therefore, on December 10, 2019, the new Argentine president shall take office and replace the former president. With the definition of the election outcome, the BCRA issued Communiqué “A” 6815, which set new restrictions to the acquisition of foreign currency for hoarding, so as to preserve its reserves, as they had dropped significantly due to the retail demand during the weeks prior to the presidential election.

As of the date of issuance of these condensed consolidated interim financial statements, there is still a high volatility level in the abovementioned variables, while the Argentine peso-to-US dollar exchange rate as of November 7, 2019, amounted to ARS 59.5977-to-USD 1.

Therefore, the Bank’s Management permanently monitors any changes in the abovementioned situations in international and local markets, to determine the possible actions to adopt and to identify the possible impact on its financial situation that may need to be reflected in the future financial statements.

38.

EVENTS AFTER REPORTING PERIOD

No other events occurred between the end of the period and the issuance of these condensed consolidated interim financial statements that may materially affect the financial position or the profit and loss for the period, not disclosed in these condensed consolidated interim financial statements.

39.

ACCOUNTING PRINCIPLES – EXPLANATION ADDED FOR TRANSLATION INTO ENGLISH

These condensed consolidated interim financial statements are presented in accordance with the accounting framework established by the BCRA, as mentioned in note 3. These accounting standards may not conform with accounting principles generally accepted in other countries.

Delfín Jorge Ezequiel Carballo

Chairperson

- 48 -

EXHIBIT B

CONSOLIDATED CLASSIFICATION OF LOANS AND OTHER FINANCING

BY SITUATION AND COLLATERAL RECEIVED

AS OF SEPTEMBER 30, 2019 AND DECEMBER 31, 2018

(Translation of the financial statements originally issued in Spanish – See Note 39)

(Figures stated in thousands of pesos)

	09/30/2019		12/31/2018
COMMERCIAL

In normal situation		87,703,077		70,071,286
With senior “A” collateral and counter-collateral		2,406,982		2,554,501
With senior “B” collateral and counter-collateral		11,186,037		8,453,117
Without senior collateral or counter-collateral		74,110,058		59,063,668

Subject to special monitoring		715,868		213,632
In observation
With senior “A” collateral and counter-collateral		83,805		3,226
With senior “B” collateral and counter-collateral		188,862		68,007
Without senior collateral or counter-collateral		188,424		41,805
In negotiation or with financing agreements
With senior “A” collateral and counter-collateral				43,592
Without senior collateral or counter-collateral		254,777		57,002

Troubled		201,682		633,432
With senior “B” collateral and counter-collateral		62,659		179,598
Without senior collateral or counter-collateral		139,023		453,834

With high risk of insolvency		194,645		283,394
With senior “A” collateral and counter-collateral		9,174		1,223
With senior “B” collateral and counter-collateral		39,699		182,130
Without senior collateral or counter-collateral		145,772		100,041

Irrecoverable		17,983
With senior “B” collateral and counter-collateral		17,644
Without senior collateral or counter-collateral		339

Subtotal Commercial		88,833,255		71,201,744

Delfín Jorge Ezequiel Carballo

Chairperson

- 49 -

EXHIBIT B

(Continued)

CONSOLIDATED CLASSIFICATION OF LOANS AND OTHER FINANCING

BY SITUATION AND COLLATERAL RECEIVED

AS OF SEPTEMBER 30, 2019 AND DECEMBER 31, 2018

(Translation of the financial statements originally issued in Spanish – See Note 39)

(Figures stated in thousands of pesos)

	09/30/2019		31/12/2018
CONSUMER AND MORTGAGE

Performing		111,225,852		108,845,927
With senior “A” collateral and counter-collateral		1,819,928		2,959,968
With senior “B” collateral and counter-collateral		14,875,670		14,552,408
Without senior collateral or counter-collateral		94,530,254		91,333,551
Low risk		1,860,566		2,074,849
With senior “A” collateral and counter-collateral		62,081		48,130
With senior “B” collateral and counter-collateral		204,282		192,993
Without senior collateral or counter-collateral		1,594,203		1,833,726
Medium risk		1,526,970		1,420,894
With senior “A” collateral and counter-collateral		18,329		16,916
With senior “B” collateral and counter-collateral		188,301		79,214
Without senior collateral or counter-collateral		1,320,340		1,324,764
High risk		1,455,223		961,047
With senior “A” collateral and counter-collateral		9,253		13,707
With senior “B” collateral and counter-collateral		86,214		39,126
Without senior collateral or counter-collateral		1,359,756		908,214
Irrecuperable		506,961		234,151
With senior “A” collateral and counter-collateral		16,352		1,260
With senior “B” collateral and counter-collateral		107,813		26,998
Without senior collateral or counter-collateral		382,796		205,893
Irrecoverable according to Central Bank's rules		597		904
Without senior collateral or counter-collateral		597		904
Subtotal consumer and mortgage		116,576,169		113,537,772
Total		205,409,424		184,739,516

This exhibit discloses the contractual figures as established by the BCRA. The conciliation with the consolidated statement of financial position is listed below:

	09/30/2019		12/31/2018
Loans and other financing		194,353,687		178,874,755
+ Allowances for loans and other financing		4,822,376		4,160,745
+ Adjustment IFRS (adjustment amortized cost and fair value)		161,884		257,071
+ Debt securities of financial trust - Measured at amortized cost		625,286		2,749
+ Corporate Bonds		2,851,990
Guarantees provided and contingent liabilities		2,594,201		1,444,196
Total computable items		205,409,424		184,739,516

Delfín Jorge Ezequiel Carballo

Chairperson

- 50 -

EXHIBIT C

CONSOLIDATED CONCENTRATION OF LOANS AND FINANCING FACILITIES

AS OF SEPTEMBER 30, 2019 AND DECEMBER 31, 2018

(Translation of the financial statements originally issued in Spanish – See Note 39)

(Figures stated in thousands of pesos)

	09/30/2019				12/31/2018
Number of customers	Cut off balance		% of total portfolio		Cut off balance		% of total portfolio
10 largest customers		34,417,437		16.76		19,431,965		10.52
50 next largest customers		25,617,516		12.47		22,338,631		12.09
100 next largest customers		14,792,173		7.20		13,694,432		7.41
Other customers		130,582,298		63.57		129,274,488		69.98

Total (1)		205,409,424		100.00		184,739,516		100.00

(1) See reconciliation in Exhibit B

Delfín Jorge Ezequiel Carballo

Chairperson

- 51 -

EXHIBIT D

CONSOLIDATED BREAKDOWN OF LOANS AND OTHER FINANCING BY TERM

AS OF SEPTEMBER 30, 2019

(Translation of the Financial statements originally issued in Spanish – See Note 39)

(Figures expressed in thousands of Pesos)

			Remaining terms to maturity
Item	Matured		Up to 1 month		Over 1 month and up to 3 months		Over 3 months and up to 6 months		Over 6 months and up to 12 months		Over 12 months and up to 24 months		Over 24 months		Total
Non financial government sector				76,817		240,430		95,118		98,494		76,320				587,179
Financial sector				623,563		2,429,716		1,212,166		717,192		1,121,028				6,103,665
Non financial private sector and foreign residents		2,337,178		69,435,865		25,950,738		31,249,890		27,415,164		40,456,606		67,562,645		264,408,086

Total		2,337,178		70,136,245		28,620,884		32,557,174		28,230,850		41,653,954		67,562,645		271,098,930

CONSOLIDATED BREAKDOWN OF LOANS AND OTHER FINANCING BY TERM

AS OF DECEMBER 31, 2018

(Translation of the Financial statements originally issued in Spanish – See Note 39)

(Figures expressed in thousands of Pesos)

			Remaining terms to maturity
Item	Matured		Up to 1 month		Over 1 month and up to 3 months		Over 3 months and up to 6 months		Over 6 months and up to 12 months		Over 12 months and up to 24 months		Over 24 months		Total
Non financial government sector				156,275		403,613		434,592		745,089		968,517		323,784		3,031,870
Financial sector				1,097,205		1,733,758		1,205,293		1,698,740		598,110		22,143		6,355,249
Non financial private sector and foreign residents		1,896,929		52,337,082		23,411,664		25,455,967		30,819,902		35,342,048		69,687,361		238,950,953

Total		1,896,929		53,590,562		25,549,035		27,095,852		33,263,731		36,908,675		70,033,288		248,338,072

This exhibit discloses the contractual future cash flows that include interest and charges to be accrued until maturity of the contracts.

Delfín Jorge Ezequiel Carballo

Chairperson

- 52 -

EXHIBIT F

CONSOLIDATED CHANGE OF PROPERTY, PLANT AND EQUIPMENT

AS OF SEPTEMBER 30, 2019

(Translation of the financial statements originally issued in Spanish – See Note 39)

(Figures stated in thousands of pesos)

	Original value at beginning		Total life						Depreciation for the period								Residual value at the
Item	of fiscal year		estimated in years		Increases		Decreases		Accumulated		Decrease		Of the period		At the end		end of the period
Cost
Real property		7,368,876		50		62,733		24,643		340,877		14,930		105,070		431,017		6,975,949
Furniture and facilities		644,620		10		81,309		30,302		182,535		29,844		49,040		201,731		493,896
Machinery and equipment		1,515,832		5		310,954		181,862		781,852		181,132		211,234		811,954		832,970
Vehicles		139,588		5		25,789		15,939		85,201		11,373		20,393		94,221		55,217
Other		1,149				80				1,129		34		129		1,224		5
Work in progress		724,223				886,092		16,572										1,593,743
Right of use				5		915,856		16,107				2,183		162,707		160,524		739,225
Total property, plant and equipment		10,394,288				2,282,813		285,425		1,391,594		239,496		548,573		1,700,671		10,691,005

CONSOLIDATED CHANGE OF PROPERTY, PLANT AND EQUIPMENT

AS OF DECEMBER 31, 2018

(Translation of the financial statements originally issued in Spanish – See Note 39)

(Figures stated in thousands of pesos)

	Original value at beginning		Total life						Depreciation for the fiscal year								Residual value at the
Item	of fiscal year		estimated in years		Increases		Decreases		Accumulated		Decrease		For the fiscal year		At the end		end of the fiscal year
Cost
Real property (1)		5,291,944		50		2,856,372		779,441		422,212		177,032		95,697		340,877		7,027,998
Furniture and facilities		375,248		10		275,681		6,309		143,554		11		38,992		182,535		462,085
Machinery and equipment		1,046,933		5		585,627		116,728		571,215				210,637		781,852		733,980
Vehicles		117,949		5		38,465		16,825		78,659		14,150		20,692		85,201		54,388
Other		1,122				40		13		1,095				34		1,129		20
Work in progress		2,576,980				1,556,054		3,408,811										724,223
Total property, plant and equipment		9,410,176				5,312,239		4,328,127		1,216,735		191,193		366,052		1,391,594		9,002,694

Delfín Jorge Ezequiel Carballo

Chairperson

- 53 -

EXHIBIT F

(Continued)

CONSOLIDATED CHANGE IN INVESTMENT PROPERTY

AS OF SEPTEMBER 30, 2019

(Translation of the financial statements originally issued in Spanish – See Note 39)

(Figures stated in thousands of pesos)

	Original Value at		Useful life						Depreciation for the period								Residual value at
Item	beginning of fiscal year		estimated in years		Increases		Decreases		Accumulated		Decrease		Of the period		At the end		the end of the period
Cost
Rented properties		90,485		50						8,127				771		8,898		81,587
Other investment properties		198,596		50		222,431		2,182		7,350		163		1,985		9,172		409,673
Total investment property		289,081				222,431		2,182		15,477		163		2,756		18,070		491,260

CONSOLIDATED CHANGE IN INVESTMENT PROPERTY

AS OF DECEMBER 31, 2018

(Translation of the financial statements originally issued in Spanish – See Note 39)

(Figures stated in thousands of pesos)

	Original Value at		Useful life						Depreciation for the fiscal year								Residual value at the end of
Item	beginning of fiscal year		estimated in years		Increases		Decreases		Accumulated		Decrease		For the fiscal year		At the end		the fiscal year
Cost
Rented properties				50		90,485				8,027				100		8,127		82,358
Other investment properties		658,974		50		303,503		763,881		19,965		18,680		6,065		7,350		191,246
Total investment property (1)		658,974				393,988		763,881		27,992		18,680		6,165		15,477		273,604

(1) During the fiscal year 2018, this item observed transfers to and from property, plant and equipment and/or non current assets held for sale.

Delfín Jorge Ezequiel Carballo

Chairperson

- 54 -

EXHIBIT G

CONSOLIDATED CHANGE IN INTANGIBLE ASSETS

AS OF SEPTEMBER 30, 2019

(Translation of the financial statements originally issued in Spanish – See Note 39)

(Figures stated in thousands of pesos)

	Original Value at		Useful life						Depreciation for the period								Residual value at the
Item	beginning of fiscal year		estimated in years		Increases		Decreases		Accumulated		Decrease		Of the period		At the end		end of the period
Cost
Licenses		600,446		5		361,759		141,945		271,952		141,943		104,272		234,281		585,979
Other intangible assets		1,887,767		5		707,778		311,958		815,244		311,960		317,139		820,423		1,463,164
Total intangible assets		2,488,213				1,069,537		453,903		1,087,196		453,903		421,411		1,054,704		2,049,143

CONSOLIDATED CHANGE IN INTANGIBLE ASSETS

AS OF DECEMBER 31, 2018

(Translation of the financial statements originally issued in Spanish – See Note 39)

(Figures stated in thousands of pesos)

	Original								Depreciation for the fiscal year								Residual
Item	Value at beginning of fiscal year		Useful life estimated in years		Increases		Decreases		Accumulated		Decrease		For the fiscal year		At the end		value at the end of the fiscal year
Cost
Licenses		344,671		5		256,269		494		195,765		3		66,425		262,187		338,259
Other intangible assets		1,206,227		5		754,508		72,968		527,111				297,898		825,009		1,062,758
Total intangible assets (1)		1,550,898				1,010,777		73,462		722,876		3		364,323		1,087,196		1,401,017

(1) During the fiscal year 2018, there were transfers between different lines of the item, that produce differences between the amounts at the end of one year and the beginning of other, without implying modifications of total this item.

Delfín Jorge Ezequiel Carballo

Chairperson

- 55 -

EXHIBIT H

CONSOLIDATED DEPOSIT CONCENTRATION

AS OF SEPTEMBER 30, 2019 AND DECEMBER 31, 2018

(Translation of the financial statements originally issued in Spanish – See Note 39)

(Figures stated in thousands of pesos)

	09/30/2019				12/31/2018
Number of customers	Outstanding balance		% of total portfolio		Outstanding balance		% of total portfolio
10 largest customers		14,564,532		5.62		19,840,988		8.34
50 next largest customers		13,537,808		5.22		17,271,242		7.26
100 next largest customers		9,697,924		3.74		10,956,612		4.60
Other customers		221,402,168		85.42		189,885,577		79.80

Total		259,202,432		100.00		237,954,419		100.00

Delfín Jorge Ezequiel Carballo

Chairperson

- 56 -

EXHIBIT I

CONSOLIDATED BREAKDOWN OF FINANCIAL LIABILITIES

FOR RESIDUAL TERMS

AS OF SEPTEMBER 30, 2019

(Translation of the Financial statements originally issued in Spanish – See Note 39)

(Figures expressed in thousands of Pesos)

	Remaining terms to maturity
Item	Up to 1 month		Over 1 month and up to 3 months		Over 3 months and up to 6 months		Over 6 months and up to 12 months		Over 12 months and up to 24 months		Over 24 months		Total
Deposits		230,965,706		26,386,190		3,676,897		1,307,869		48,105		19,723		262,404,490

From the non-financial government sector		18,404,207		2,322,460		159,244		1,625						20,887,536
From the financial sector		293,027												293,027
From the non-financial private sector and foreign residents		212,268,472		24,063,730		3,517,653		1,306,244		48,105		19,723		241,223,927

Derivative instruments		8,035		128,020		11,254								147,309

Repo transactions		2,167,021												2,167,021

Other financial institutions		2,167,021												2,167,021

Other Financial Liabilities		16,488,000		34,434		32,058		39,872		152,714		26,727		16,773,805

Financing received from the Central Bank of Argentina and other financial institutions		605,962		793,253		1,682,423		75,046		189,011		65,656		3,411,351

Issued corporate bonds		357,901		252,804		384,791		966,854		3,808,077		3,394,799		9,165,226

Subordinated corporate bonds				777,037				777,037		1,554,074		32,345,463		35,453,611

Total		250,592,625		28,371,738		5,787,423		3,166,678		5,751,981		35,852,368		329,522,813

This exhibit discloses contractual future cash flows that include interests and accessories to be accrued until maturity of the contracts.

Delfín Jorge Ezequiel Carballo

Chairperson

- 57 -

EXHIBIT I

CONSOLIDATED BREAKDOWN OF FINANCIAL LIABILITIES

FOR RESIDUAL TERMS

AS OF DECEMBER 31, 2018

(Translation of the financial statements originally issued in Spanish – See Note 39)

(Figures stated in thousands of pesos)

	Remaining terms to maturity
Item	Up to 1 month		Over 1 month and up to 3 months		Over 3 months and up to 6 months		Over 6 months and up to 12 months		Over 12 months and up to 24 months		Over 24 months		Total
Deposits		198,459,625		33,817,014		7,493,854		1,310,113		64,511		15,985		241,161,102

From the non-financial government sector		17,319,378		1,670,962		639,754		46,091		206				19,676,391
From the financial sector		148,275												148,275
From the non-financial private sector and foreign residents		180,991,972		32,146,052		6,854,100		1,264,022		64,305		15,985		221,336,436

Liabilities at fair value through profit or loss

Derivative instruments		1,019				350								1,369

Repo transactions		164,667												164,667

Other Financial entities		164,667												164,667

Other Financial Liabilities		15,140,459		18,645		9,221		13,064		20,085		140,505		15,341,979

Financing received from the Central Bank of Argentina and other financial institutions		425,053		918,813		1,083,024		470,177		87,151		125,173		3,109,391

Issued corporate bonds		362,534				584,698		734,105		1,441,379		7,387,182		10,509,898

Subordinated corporate bonds						510,412		510,412		1,020,824		21,757,164		23,798,812

Total		214,553,357		34,754,472		9,681,559		3,037,871		2,633,950		29,426,009		294,087,218

This exhibit discloses contractual future cash flows that include interests and accessories to be accrued until maturity of the contracts.

Delfín Jorge Ezequiel Carballo

Chairperson

- 58 -

EXHIBIT J

CONSOLIDATED CHANGES IN PROVISIONS

AS OF SEPTEMBER 30, 2019

(Translation of the financial statements originally issued in Spanish - See Note 39)

(Figures stated in thousands of pesos)

	Amounts at		Decreases
Item	beginning of fiscal year	Increases	Reversals	Charge off	09/30/2019
For Administrative, disciplinary and criminal sanctions	718	50		50	718
Other	1,045,176	888,361	18,045	587,233	1,328,259
Total Provisions	1,045,894	888,411	18,045	587,283	1,328,977

CONSOLIDATED CHANGES IN PROVISIONS

AS OF DECEMBER 31, 2018

(Translation of the financial statements originally issued in Spanish - See Note 39)

(Figures stated in thousands of pesos)

	Amounts at		Decreases
Item	beginning of fiscal year	Increases	Reversals	Charge off	12/31/2018
For Administrative, disciplinary and criminal sanctions	718				718
Other	694,201	1,103,870	17,424	735,471	1,045,176
Total Provisions	694,919	1,103,870	17,424	735,471	1,045,894

Delfín Jorge Ezequiel Carballo

Chairperson

- 59 -

EXHIBIT L

CONSOLIDATED FOREIGN CURRENCY AMOUNTS

AS OF SEPTEMBER 30, 2019 AND DECEMBER 31, 2018

(Translation of the financial statements originally issued in Spanish - See Note 39)

(Figures stated in thousands of pesos)

	09/30/2019										12/31/2018
	Total parent		Total per currency
	company and
Items	local branches		US dollar		Euro		Real		Other		Total
ASSETS
Cash and deposits in banks		55,628,657		55,172,398		357,733		17,584		80,942		42,745,328
Debt securities at fair value through profit or loss		236,706		236,706								388,276
Derivative instruments												2,738
Other financial assets		2,639,001		2,639,001								1,545,982
Loans and other financing		54,792,681		54,792,681								46,040,211
To the non-financial government sector		318		318								80
Other financial institutions		192,696		192,696								480,324
From the non-financial private sector and foreign residents		54,599,667		54,599,667								45,559,807
Other debt securities		1,487,359		1,487,359								1,217,229
Financial assets delivered as guarantee		1,713,402		1,713,402								929,442
Equity Instruments at fair value through profit or loss		9,601		9,601								5,746

TOTAL ASSETS		116,507,407		116,051,148		357,733		17,584		80,942		92,874,952

LIABILITIES
Deposits		80,358,051		80,357,991		60						71,357,886
Non-financial government sector		2,771,602		2,771,602								2,295,035
Financial sector		219,811		219,811								100,200
Non-financial private sector and foreign residents		77,366,638		77,366,578		60						68,962,651
Other financial liabilities		4,946,785		4,724,305		217,960				4,520		2,618,946
Financing from Central Bank and other financial Institutions		2,872,281		2,872,281								2,598,810
Subordinated corporate bonds		23,726,491		23,726,491								15,288,390
Other non-financial liabilities		60,009		60,009								34,948

TOTAL LIABILITIES		111,963,617		111,741,077		218,020				4,520		91,898,980

Delfín Jorge Ezequiel Carballo

Chairperson

- 60 -

EXHIBIT Q

CONSOLIDATED BREAKDOWN OF STATEMENT OF INCOME

AS OF SEPTEMBER 30, 2019

(Translation of the financial statements originally issued in Spanish - See Note 39)

(Figures stated in thousands of pesos)

	Net financial Income/ (Loss)
	Mandatory measurement
Items	Quarter ended 09/30/2019			Accumulated from beginning of period up to 09/30/2019
For measurement of financial assets at fair value through profit or loss
Loss from government securities		(327,860	)		(124,911	)
Gain from private securities		135,428			429,559
(Loss)/ Gain from derivative financial instruments
Forward transactions		737,275			1,024,116
Gain from other financial assets		12,566			113,405
(Loss)/Gain from equity instruments at fair value through profit or loss		(275	)		1,409,765
Gain/(Loss) from sales of financial assets at fair value		102,294			(86,002	)
TOTAL		659,428			2,765,932

Delfín Jorge Ezequiel Carballo

Chairperson

- 61 -

EXHIBIT Q

(Continued)

CONSOLIDATED BREAKDOWN OF STATEMENT OF INCOME

AS OF SEPTEMBER 30, 2019

(Translation of the financial statements originally issued in Spanish - See Note 39)

(Figures stated in thousands of pesos)

	Net financial Income/(Loss)
Interest and adjustment for the application of the effective interest rate of financial assets measured at amortized cost	Quarter ended 09/30/2019			Accumulated from beginning of period up to 09/30/2019
Interest income
For cash and bank deposits		86,041			152,039
For government securities		1,880,741			2,926,783
For debt securities		378,928			380,326
For loans and other financing
Financial sector		374,726			1,224,202
Non-financial private sector
Overdrafts		3,351,247			6,962,088
Documents		961,058			3,248,033
Mortgage loans		1,470,491			4,453,879
Pledge loans		128,530			381,733
Personal loans		6,162,229			17,951,907
Credit cards		2,588,722			7,833,169
Financial leases		28,134			115,412
Other		1,018,435			3,169,632
For repo transactions
Central Bank of Argentina					9,381
Other financial institutions		7,511			1,937,100
TOTAL		18,436,793			50,745,684
Interest expenses
For deposits
Non-financial private sector
Checking accounts		(104,630	)		(274,633	)
Saving accounts		(113,904	)		(363,468	)
Time deposits and investments accounts		(13,969,207	)		(37,709,221	)
For Financing received from Central Bank of Argentina and other financial institutions		(63,245	)		(167,926	)
For repo transactions
Other financial institutions		(53,300	)		(231,715	)
For other financial liabilities		(47,257	)		(104,533	)
Issued corporate bonds		(787,429	)		(1,709,311	)
For subordinated corporate bonds		(385,656	)		(976,856	)
TOTAL		(15,524,628	)		(41,537,663	)

Delfín Jorge Ezequiel Carballo

Chairperson

- 62 -

EXHIBIT Q

(Continued)

CONSOLIDATED BREAKDOWN OF STATEMENT OF INCOME

AS OF SEPTEMBER 30, 2019

(Translation of the Financial statements originally issued in Spanish – See Note 39)

(Figures expressed in thousands of Pesos)

	Income for the period				Other comprehensive income/ (loss)
Interest and adjustment for the application of the effective interest rate of financial assets measured at fair value through other comprehensive income	Quarter ended 09/30/2019		Accumulated from beginning of period up to 09/30/2019		Quarter ended 09/30/2019		Accumulated from beginning of period up to 09/30/2019
From debt government securities		17,145,155		40,565,165		47,368		(35,403	)
Total		17,145,155		40,565,165		47,368		(35,403	)

	Income for the period
Commissions income		Quarter ended 09/30/2019	Accumulated from beginning of period up to 09/30/2019
Commissions related to obligations		2,357,049	6,613,529
Commissions related to credits		46,949	110,354
Commissions related to loans commitments and financial guarantees		2,139	4,580
Commissions related to securities value		50,768	166,017
Commissions for credit cards		1,337,303	3,495,219
Commissions for insurance		230,296	687,818
Commissions related to trading and foreign exchange transactions		115,331	283,649
Total		4,139,835	11,361,166

	Loss for the period
Commissions expenses	Quarter ended 09/30/2019			Accumulated from beginning of period up to 09/30/2019
Commissions related to trading and foreign exchange transactions		(64,836	)		(93,130	)
Other
Commissions paid ATM exchange		(168,644	)		(404,323	)
Checkbooks commissions and compensating cameras		(76,343	)		(198,262	)
Commissions Credit cards and foreign trade		(77,274	)		(211,003	)
Total		(387,097	)		(906,718	)

Delfín Jorge Ezequiel Carballo

Chairperson

- 63 -

EXHIBIT Q

CONSOLIDATED BREAKDOWN OF STATEMENT OF INCOME

AS OF SEPTEMBER 30, 2018

(Translation of the Financial statements originally issued in Spanish – See Note 39)

(Figures expressed in thousands of Pesos)

	Net financial Income/ (Loss)
	Mandatory measurement
Items	Quarter ended 09/30/2018			Accumulated from beginning of period up to 09/30/2018
For measurement of financial assets at fair value through profit or loss
Gain from government securities		214,720			308,704
Gain from private securities		66,216			117,134
(Loss)/ Gain from derivative financial instruments
Forwards transactions		234,442			234,442
Gain from other financial assets		62,084			107,204
Gain from equity instruments at fair value through profit or loss		455			40,380
Loss from sales or low of financial assets at fair value		(84,988	)		(106,072	)
Forwards transactions		5,970
Total		498,899			701,792

Delfín Jorge Ezequiel Carballo

Chairperson

- 64 -

EXHIBIT Q

(Continued)

CONSOLIDATED BREAKDOWN OF STATEMENT OF INCOME

AS OF SEPTEMBER 30, 2018

(Translation of the Financial statements originally issued in Spanish – See Note 39)

(Figures expressed in thousands of Pesos)

	Net financial Income/ (Loss)
Interest and adjustment for the application of the effective interest rate of financial assets measured at amortized cost	Quarter ended 09/30/2018			Accumulated from beginning of period up to 09/30/2018
Interest income
For cash and bank deposits		4,722			9,692
For debt securities		71,257			173,629
For government securities		343,139			373,267
For loans and other financing
Financial sector		311,769			683,160
Non-financial private sector
Overdrafts		1,448,110			3,190,360
Documents		855,875			2,240,304
Mortgage loans		1,101,056			2,464,646
Pledge loans		142,085			434,208
Personal loans		5,446,789			15,042,907
Credit cards		1,788,251			4,689,662
Financial leases		39,570			107,272
Other		1,211,722			3,027,645
For repo transactions
Central Bank of Argentina					22,656
Other financial institutions		7,610			65,854
Total		12,771,955			32,525,262
Interest expenses
For deposits
Non financial private sector
Checking accounts		(142,137	)		(142,137	)
Saving accounts		(91,056	)		(208,897	)
Time deposits and investments accounts		(5,463,547	)		(12,233,294	)
For Financing received from Central Bank of Argentina and other financial institutions		(47,561	)		(82,569	)
Other financial institutions		(65,702	)		(121,014	)
For other financial liabilities		(18,433	)		(23,764	)
Issued corporate bonds		(405,786	)		(1,028,860	)
For subordinated corporate bonds		(252,059	)		(565,465	)
Total		(6,486,281	)		(14,406,000	)

Delfín Jorge Ezequiel Carballo

Chairperson

- 65 -

EXHIBIT Q

(Continued)

CONSOLIDATED BREAKDOWN OF STATEMENT OF INCOME

AS OF SEPTEMBER 30, 2018

(Translation of the Financial statements originally issued in Spanish – See Note 39)

(Figures expressed in thousands of Pesos)

	Income for the period				Other comprehensive income/ (loss)
Interest and adjustment for the application of the effective interest rate of financial assets measured at fair value through other comprehensive income	Quarter ended 09/30/2018		Accumulated from beginning of period up to 09/30/2018		Quarter ended 09/30/2018			Accumulated from beginning of period up to 09/30/2018
From debt government securities		4,037,082		9,238,074		(195,864	)		(319,339	)
Total		4,037,082		9,238,074		(195,864	)		(319,339	)

	Income for the period
Commissions income		Quarter ended 09/30/2018	Accumulated from beginning of period up to 09/30/2018
Commissions related to obligations		1,968,143	5,291,828
Commissions related to credits		21,697	64,475
Commissions related to loans commitments and financial guarantees		468	921
Commissions related to securities value		20,036	67,312
Commissions for credit cards		812,070	2,341,010
Commissions for insurance		178,226	519,961
Commissions related to trading and foreign exchange transactions		69,716	161,894
Total		3,070,356	8,447,401

	Loss for the period
Commissions expenses		Quarter ended 09/30/2018		Accumulated from beginning of period up to 09/30/2018
Commissions related to debt securities				(208	)
Commissions related to trading and foreign exchange transactions		(14,644	)	(31,672	)
Other
Commissions paid ATM exchange		(85,764	)	(221,081	)
Checkbooks commissions and compensating cameras		(47,041	)	(128,038	)
Commissions Credit cards and foreign trade		(53,981	)	(157,626	)
Total		(201,430	)	(538,625	)

Delfín Jorge Ezequiel Carballo

Chairperson

- 66 -

EXHIBIT R

VALUE ADJUSTMENT FOR CREDIT LOSSES - CONSOLIDATED ALLOWANCES FOR UNCOLLECTIBILITY RISK

AS OF SEPTEMBER 30, 2019

(Translation of the financial statements originally issued in Spanish - See Note 39)

(Figures stated in thousands of pesos)

	Balances at				Decreases
Item	beginning of the fiscal year		Increases		Reversals		Charge off		09/30/2019
Other financial assets		5,015		1,478,720		56		16		1,483,663
Loans and other financing		4,160,745		3,200,266		97,858		2,440,777		4,822,376
Other financial institutions		52,121		2,894		32,065				22,950
To the non-financial private sector and foreign residents
Overdrafts		282,498		245,302		2,897		81,196		443,707
Documents		354,248		82,415		22,903		81,938		331,822
Mortgage loans		272,753		119,558		1,940		32,293		358,078
Pledge loans		77,524		29,460		1,036		1,649		104,299
Personal loans		1,720,698		1,362,653		51		1,145,009		1,938,291
Credit cards		814,844		602,152		459		458,162		958,375
Financial leases		5,570		1,340		1,038				5,872
Other		580,489		754,492		35,469		640,530		658,982
Other debt securities				24,761						24,761
TOTAL OF ALLOWANCES		4,165,760		4,703,747		97,914		2,440,793		6,330,800

VALUE ADJUSTMENT FOR CREDIT LOSSES - CONSOLIDATED ALLOWANCES FOR UNCOLLECTIBILITY RISK

AS OF DECEMBER 31, 2018

(Translation of the financial statements originally issued in Spanish - See Note 39)

(Figures stated in thousands of pesos)

	Balances at				Decreases
Item	beginning of the fiscal year		Increases		Reversals		Charge off		12/31/2018
Other financial assets		5,131		1,850		131		1,835		5,015
Loans and other financing		2,666,738		3,100,127		40,961		1,565,159		4,160,745
Other financial institutions		31,251		25,571		4,701				52,121
To the non-financial private sector and foreign residents
Overdrafts		139,833		201,391		7,209		51,517		282,498
Documents		202,505		193,753		1,546		40,464		354,248
Mortgage loans		152,116		153,332		14,208		18,487		272,753
Pledge loans		74,380		29,647		3,929		22,574		77,524
Personal loans		1,207,483		1,495,470		267		981,988		1,720,698
Credit cards		590,483		575,386		1,005		350,020		814,844
Financial leases		6,487		273		1,190				5,570
Other		262,200		425,304		6,906		100,109		580,489
TOTAL OF ALLOWANCES		2,671,869		3,101,977		41,092		1,566,994		4,165,760

Delfín Jorge Ezequiel Carballo

Chairperson

- 67 -

CONDENSED SEPARATE INTERIM STATEMENT OF FINANCIAL POSITION

AS OF SEPTEMBER 30, 2019 AND DECEMBER 31,2018

(Translation of the Financial statements originally issued in Spanish – See Note 37)

(Figures expressed in thousands of Pesos)

Items	Notes		Exhibits	09/30/2019		12/31/2018
ASSETS
Cash and Deposits in Banks					90,631,294		68,178,537
Cash					14,609,035		9,319,226
Central Bank of Argentina					51,852,760		46,046,332
Other Local and Foreign Entities					24,165,899		12,370,152
Other					3,600		442,827
Debt Securities at fair value through profit or loss			A		1,086,146		2,150,737
Derivative Financial Instruments					56,436		14,555
Other financial assets		7	R		2,849,142		2,263,655
Loans and other financing			B, C, D y R		180,080,921		165,209,389
Non financial Public Sector					458,635		1,768,254
Other Financial Entities					2,423,272		5,573,806
Non financial Private Sector and Foreign Residents					177,199,014		157,867,329
Other Debt Securities			A		74,453,095		62,654,466
Financial Assets delivered as guarantee		25			9,806,691		6,323,938
Equity Instruments at fair value through profit or loss		10	A		1,505,187		47,020
Investment in subsidiaries, associates and joint arrangements					5,968,502		4,888,171
Property, plant and equipment			F		10,039,965		8,512,492
Intangible Assets			G		2,234,210		1,591,857
Deferred Income Tax Assets		15.b)			2,507,833		-
Other Non financial Assets		7			991,260		629,239
Non current assets held for sale		10			440,751		804,017
TOTAL ASSETS					382,651,433		323,268,073

Delfín Jorge Ezequiel Carballo

Chairperson

- 68 -

CONDENSED SEPARATE INTERIM STATEMENT OF FINANCIAL POSITION

AS OF SEPTEMBER 30, 2019 AND DECEMBER 31,2018

(Translation of the Financial statements originally issued in Spanish – See Note 37)

(Figures expressed in thousands of Pesos)

Items	Notes		Exhibits	09/30/2019		12/31/2018

LIABILITIES
Deposits			H e I		241,522,783		219,761,923
Non financial Public Sector					16,157,546		11,729,037
Financial Sector					293,021		148,269
Non financial Private Sector and Foreign Residents					225,072,216		207,884,617
Derivative Financial Instruments			I		147,309		1,369
Repo Transactions			I		2,167,021		164,469
Other Financial Liabilities		12	I		14,783,581		14,128,235
Financing received from the Central Bank of Argentina and other financial entities			I		3,335,440		3,297,393
Issued Corporate Bonds		30	I		6,008,238		6,388,191
Current Income Tax Liabilities		15.a)			4,486,717		2,712,536
Subordinated Corporate Bonds		30	I		23,726,491		15,288,390
Provisions		11	J		1,245,036		969,754
Deferred Income Tax Liabilities							254,957
Other Non-financial Liabilities		12			8,645,089		5,454,286
TOTAL LIABILITIES					306,067,705		268,421,503
SHAREHOLDERS’ EQUITY
Capital Stock		23	K		639,398		669,663
Non capital contributions					12,428,461		12,428,461
Adjustments to Shareholders’ Equity					4,511		4,511
Earnings Reserved					34,837,136		21,995,937
Unappropriated Retained Earnings							3,475,669
Other Comprehensive Income					1,140,100		543,086
Net Income for the period/ fiscal year					27,534,122		15,729,243
TOTAL SHAREHOLDERS’ EQUITY					76,583,728		54,846,570
TOTAL SHAREHOLDERS’ EQUITY AND LIABILITIES					382,651,433		323,268,073

The notes 1 to 37 to the condensed separate interim financial statements and the exhibits A to D, F to L, O, Q and R are an integral part of the condensed separate interim financial statements.

Delfín Jorge Ezequiel Carballo

Chairperson

- 69 -

CONDENSED SEPARATE INTERIM STATEMENT OF FINANCIAL POSITION

FOR THE THREE AND NINE MONTH PERIODS ENDED SEPTEMBER 30, 2019 AND 2018

(Translation of the Financial statements originally issued in Spanish – See Note 37)

(Figures expressed in thousands of Pesos)

Items	Notes		Exhibits	Quarter ended 09/30/2019			Accumulated from beginning of year up to 09/30/2019			Quarter ended 09/30/2018			Accumulated from beginning of year up to 09/30/2018

Interest income			Q		33,831,038			86,088,284			15,670,864			38,641,042
Interest expense			Q		(14,569,756	)		(38,655,087	)		(5,966,433	)		(13,309,624	)
Net Interest income					19,261,282			47,433,197			9,704,431			25,331,418
Commissions income		16	Q		3,837,207			10,479,348			2,898,035			7,978,601
Commissions expense			Q		(338,986	)		(786,315	)		(177,357	)		(464,911	)
Net Commissions income					3,498,221			9,693,033			2,720,678			7,513,690
Subtotal (Net Interest income +Net Commissions income)					22,759,503			57,126,230			12,425,109			32,845,108
Net Income/ (Loss) from measurement of financial instruments at fair value through profit or loss			Q		736,100			2,588,891			375,013			471,170
Profit/ (Loss) from sold assets at amortized cost					(188	)		6,209			(3,021	)		(5,891	)
Differences in quoted prices of gold and foreign currency		17			1,405,765			1,638,591			(1,396,988	)		(2,399,675	)
Other operating income		18			953,171			4,785,907			1,034,725			1,810,422
Allowances for loan losses					(769,575	)		(3,629,457	)		(661,512	)		(1,687,532	)
Net Operating Income					25,084,776			62,516,371			11,773,326			31,033,602
Employee benefits		19			(4,071,493	)		(11,467,697	)		(2,475,993	)		(6,527,473	)
Administrative expenses		20			(2,628,626	)		(6,589,469	)		(1,611,067	)		(4,263,964	)
Depreciation of Property, plant and equipment			F y G		(344,806	)		(921,755	)		(171,705	)		(476,457	)
Other Operating Expenses		21			(6,342,688	)		(12,882,637	)		(2,451,247	)		(6,364,287	)
Operating Income					11,697,163			30,654,813			5,063,314			13,401,421
Income from subsidiaries, associates and joint arrangements					471,269			1,697,613			331,541			1,227,811
Income before tax on continuing operations					12,168,432			32,352,426			5,394,855			14,629,232
Income tax on continuing operations		15.b)			989,951			(4,818,304	)		(1,566,708	)		(4,143,253	)
Net Income from continuing operations					13,158,383			27,534,122			3,828,147			10,485,979
Net Income for the period					13,158,383			27,534,122			3,828,147			10,485,979

Delfín Jorge Ezequiel Carballo

Chairperson

- 70 -

SEPARATE EARNINGS PER SHARE

FOR THE THREE AND NINE MONTH PERIODS ENDED SEPTEMBER 30, 2019 AND 2018

(Translation of the Financial statements originally issued in Spanish – See Note 37)

(Figures expressed in thousands of Pesos)

Items	Quarter ended 09/30/2019		Accumulated from beginning of year up to 09/30/2019		Quarter ended 09/30/2018		Accumulated from beginning of year up to 09/30/2018

Net Profit attributable to Parent’s shareholders		13,158,383		27,534,122		3,828,147		10,485,979
PLUS: Potential diluted earnings per common share
Net Profit attributable to Parent’s shareholders adjusted as per diluted earnings		13,158,383		27,534,122		3,828,147		10,485,979
Weighted average of outstanding common shares for the period		639,397		639,403		662,173		667,139
PLUS: Weighted average of the number of additional common shares with dilution effects
Weighted average of outstanding common shares for the fiscal year adjusted as per dilution effect		639,397		639,403		662,173		667,139
Basic earnings per share		20.5794		43.0622		5.7812		15.7178

Delfín Jorge Ezequiel Carballo

Chairperson

- 71 -

CONDENSED SEPARATE INTERIM STATEMENT OF OTHER COMPREHENSIVE INCOME

FOR THE THREE AND NINE MONTH PERIODS ENDED SEPTEMBER 30, 2019 AND 2018

(Translation of the Financial statements originally issued in Spanish – See Note 37)

(Figures expressed in thousands of Pesos)

Items	Notes	Exhibits	Quarter ended 09/30/2019			Accumulated from beginning of year up to 09/30/2019			Quarter ended 09/30/2018			Accumulated from beginning of year up to 09/30/2018

Net Income for the period				13,158,383			27,534,122			3,828,147			10,485,979
Items of Other Comprehensive Income that will be reclassified to profit or loss
Foreign currency translation differences in financial statements conversion				532,238			708,687			453,841			851,955
Foreign currency translation differences for the period				532,238			708,687			453,841			851,955
Profit or losses for financial instruments measured at fair value through other comprehensive income (FVOCI) (IFRS 9(4.1.2)(a))				221,130			178,529			(127,207	)		(189,206	)
Profit or losses for the period from financial instruments at fair value through other comprehensive income (FVOCI)		Q		315,900			255,041			(181,724	)		(270,294	)
Income tax	15.b)			(94,770	)		(76,512	)		54,517			81,088
Interest in Other Comprehensive Income of associates and joint ventures accounted for using the participation method				(272,176	)		(290,202	)		(13,208	)		(48,011	)
Income for the period from interest in Other Comprehensive Income of associates and joint ventures accounted for using the participation method				(272,176	)		(290,202	)		(13,208	)		(48,011	)
Total Other Comprehensive Income that will be reclassified to profit or loss for the period				481,192			597,014			313,426			614,738
Total Other Comprehensive Income				481,192			597,014			313,426			614,738
Total Comprehensive Income				13,639,575			28,131,136			4,141,573			11,100,717

The notes 1 to 37 to the condensed separate interim financial statements and the exhibits A to D, F to L, O, Q and R are an integral part of the condensed separate interim financial statements.

Delfín Jorge Ezequiel Carballo

Chairperson

- 72 -

CONDENSED SEPARATE INTERIM STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY

FOR THE NINE MONTH PERIOD ENDED SEPTEMBER 30, 2019

(Translation of Financial statements originally issued in Spanish – See Note 37)

(Figures expressed in thousands of Pesos)

			Capital stock						Non capital contributions				Other comprehensive income					Earnings Reserved
Changes	Notes		Outstanding shares			In portfolio			Additional paid-in capital		Adjustments to Shareholders’ Equity		Accumulative foreign currency translation difference in financial statements conversion		Other			Legal		Other			Unappropriated Retained Earnings			Total Equity

Amount at the beginning of the fiscal year				640,715			28,948			12,428,461		4,511		869,961		(326,875	)		6,872,687		15,123,250			19,204,912			54,846,570
Total comprehensive income for the period
- Net income for the period																								27,534,122			27,534,122
-Other comprehensive income for the period														708,687		(111,673	)										597,014
Own shares in portfolio		23		(1,317	)		1,317
Distribution of unappropied retained earnings as approved by Shareholders´ Meeting held on April 30, 2019
Legal Reserve																			3,145,849					(3,145,849	)
Normative Reserve																					3,475,669			(3,475,669	)
Cash Dividends																					(6,393,978	)					(6,393,978	)
Other																					12,583,394			(12,583,394	)
Decrease of own shares in treasury		23					(30,265	)													30,265
Amount at the end of the period				639,398						12,428,461		4,511		1,578,648		(438,548	)		10,018,536		24,818,600			27,534,122			76,583,728

CONDENSED SEPARATE INTERIM STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY

FOR THE NINE MONTH PERIOD ENDED SEPTEMBER 30, 2018

(Translation of Financial statements originally issued in Spanish – See Note 37)

(Figures expressed in thousands of Pesos)

			Capital stock					Non capital contributions				Other comprehensive income					Earnings Reserved
Changes	Notes		Outstanding shares			In portfolio		Additional paid-in capital		Adjustments to Shareholders’ Equity		Accumulative foreign currency translation difference in financial statements conversion		Other			Legal		Other			Unappropriated Retained Earnings			Total Equity

Amount at the beginning of the fiscal year				669,663					12,428,461		4,511		137,148		67,412			4,994,932		15,368,454			12,864,442			46,535,023
Total comprehensive income for the period
- Net income for the period																							10,485,979			10,485,979
-Other comprehensive income for the period													851,955		(237,217	)										614,738
Distribution of unappropied retained earnings as approved by Shareholders´ Meeting held on April 27, 2018
Legal Reserve																		1,877,755					(1,877,755	)
Cash Dividends																				(3,348,315	)					(3,348,315	)
Other																				7,511,018			(7,511,018	)
Own share in treasury		23		(21,463	)		21,463													(3,113,925	)					(3,113,925	)
Amount at the end of the period				648,200			21,463		12,428,461		4,511		989,103		(169,805	)		6,872,687		16,417,232			13,961,648			51,173,500

The notes 1 to 37 to the condensed separate interim financial statements and the exhibits A to D, F to L, O, Q and R, are an integral part of the condensed separate interim financial statements.

Delfín Jorge Ezequiel Carballo

Chairperson

- 73 -

CONDENSED SEPARATE INTERIM STATEMENT OF CASH FLOWS

FOR THE NINE MONTH PERIODS ENDED SEPTEMBER 30, 2019 AND 2018

(Translation of the Financial statements originally issued in Spanish – See Note 37)

(Figures expressed in thousands of Pesos)

Items	Notes	09/30/2019			09/30/2018

CASH FLOWS FROM OPERATING ACTIVITIES
Income for the period before Income Tax			32,352,426			14,629,232
Adjustments to obtain cash flows from operating activities:
Amortization and depreciation			921,755			476,457
Allowance for loan losses			3,629,457			1,687,532
Difference in quoted prices of foreign currency			(17,372,452	)		(9,392,290	)
Other adjustments			4,070,834			1,517,269
Net increase/ (decrease) from operating assets:
Debt Securities at fair value though profit and loss			1,064,591			(379,589	)
Derivative financial instruments			(41,881	)		(63,784	)
Repo transactions			-			1,419,808
Loans and other financing
Non financial public sector			1,309,619			(57,323	)
Other financial entities			3,150,534			(455,434	)
Non financial private sector and foreign residents			(22,961,142	)		(39,713,327	)
Other debt securities			(15,165,032	)		7,905,255
Financial assets delivered as guarantee			(3,482,753	)		1,449,733
Equity instruments at fair value through profit or loss			(37,471	)		(9,240	)
Other assets			(1,170,467	)		(2,162,425	)
Net increase/ (decrease) from operating liabilities:
Deposits
Non financial public sector			4,428,509			2,594,191
Financial sector			144,752			68,502
Non financial private sector and foreign residents			17,187,599			58,715,050
Liabilities at fair value through profit or loss			-			(6,217	)
Derivative financial instruments			145,940			187,964
Repo transactions			2,002,552			(2,688,093	)
Other liabilities			3,467,449			4,206,005
Payments for Income Tax			(5,590,495	)		(5,151,854	)
TOTAL CASH FROM OPERATING ACTIVITIES (A)			8,054,324			34,777,422

Delfín Jorge Ezequiel Carballo

Chairperson

- 74 -

CONDENSED SEPARATE INTERIM STATEMENT OF CASH FLOWS

FOR THE NINE MONTH PERIODS ENDED SEPTEMBER 30, 2019 AND 2018

(Translation of the Financial statements originally issued in Spanish – See Note 37)

(Figures expressed in thousands of Pesos)

Items	Notes	09/30/2019			09/30/2018

CASH FLOWS FROM INVESTING ACTIVITIES
Payments:
Acquisition of PPE, intangible assets and other assets			(2,555,251	)		(1,201,299	)
TOTAL CASH USED IN INVESTING ACTIVITIES (B)			(2,555,251	)		(1,201,299	)
CASH FLOWS FROM FINANCING ACTIVITIES
Payments:
Dividends			(6,393,978	)		(3,348,315	)
Acquisition or redemption of equity instruments			(199,843	)		(3,113,925	)
Non subordinated corporate bonds			(1,769,211	)		(2,156,165	)
Central Bank of Argentina			(768	)		-
Financing from local financial entities			(240,353	)		-
Subordinated corporate bonds			(606,105	)		(292,893	)
Changes in equity instruments of subsidiaries that do not lead to the loss of control			-			(456,757	)
Other payments related to financing activities			(76,704	)		-
Proceeds:			-			-
Non Subordinated Corporate Bonds			-			3,206,999
Central Bank of Argentina			-			10,130
Financing to local financial entities						175,431
TOTAL CASH USED IN FINANCING ACTIVITIES (C)			(9,286,962	)		(5,975,495	)

EFFECT OF EXCHANGE RATE FLUCTUATIONS (D)			25,439,803			18,350,327
TOTAL CHANGES IN CASH FLOWS
NET INCREASE IN CASH AND CASH EQUIVALENTS (A+B+C+D)			21,651,914			45,950,955
CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE FISCAL YEAR	22		123,248,445			51,788,928
CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD	22		144,900,359			97,739,883

The notes 1 to 37 to the condensed separate interim financial statements and the exhibits A to D, F to L, O, Q and R are an integral part of the condensed separate interim financial statements.

Delfín Jorge Ezequiel Carballo

Chairperson

- 75 -

NOTES TO THE CONDENSED SEPARATE INTERIM FINANCIAL STATEMENTS

AS OF SEPTEMBER 30, 2019

(Translation of Financial statements originally issued in Spanish – See Note 37)

(Figures expressed in thousands of Pesos)

CORPORATE INFORMATION

Banco Macro SA (hereinafter, the “Bank”) is a business corporation (sociedad anónima) organized in the Republic of Argentina that offers traditional banking products and services to companies, including those companies operating in regional economies, as well as to individuals, thus strengthening its goal to be a multiservice bank. In addition, the Bank performs certain transactions through its subsidiaries banco del Tucumán SA, Macro Bank Limited (a company organized under the laws of Bahamas), Macro Securities SA, Macro Fiducia SA and Macro Fondos SGFCISA.

Macro Compañía Financiera SA was created in 1977 as a nonbanking financial institution. In May 1988, it received the authorization to operate as a commercial bank and it was incorporated as Banco Macro SA. Subsequently, as a result of the merger process with other entities, it adopted other names (among them, Banco Macro Bansud SA) and since August 2006, Banco Macro SA.

The Bank’s shares are publicly listed on Bolsas y Mercados Argentinos (BYMA) since November 1994 and as from March 24, 2006, they are listed on the New York Stock Exchange (NYSE). Additionally, on October 15, 2015 they were authorized to be listed on the Mercado Abierto Electrónico SA (MAE).

In 2001, 2004, 2006 and 2010, the Bank acquired the control of Banco Bansud SA, Nuevo Banco Suquía SA, Nuevo Banco Bisel SA and Banco Privado de Inversiones SA, respectively. Such entities merged with and into Banco Macro SA in December 2003, October 2007, August 2009 and December 2013, respectively. In addition, during the fiscal year 2006, Banco Macro SA acquired control over Banco del Tucumán SA. Additionally, on May 21, 2019 the Bank acquired 100% of Argenpay SA (see note 1 to the condensed consolidated interim financial statements).

On November 8, 2019, the Bank’s Board of Directors approved the issuance of these condensed separate interim financial statements.

OPERATIONS OF THE BANK

Note 2 to the condensed consolidated interim financial statements includes a detailed description of the agreements that relate the Bank and its subsidiary Banco del Tucumán SA to the provincial and municipal governments.

In addition, as mentioned in note 2.4 to the condensed consolidated interim financial statement, the Bank acquired shares of Banco del Tucumán SA for an amount of 456,757. This transaction was registered by the acquisition method. The difference between the consideration paid and the application of the purchase price method gave rise to goodwill recognition for an amount of 210,927.

On the other hand, on October 17, 2018, the Board of Directors of Banco Macro SA, decided to initiate negotiations for the merger reorganization between Banco Macro SA and Banco del Tucuman SA.

On April 30 and July 19, 2019, the Shareholders' Meeting of Banco Macro SA and the Shareholders' Meeting Banco del Tucumán SA, respectively, decided, among other issues, to approve a preliminary merger agreement, the special consolidated financial statement of merger as of December 31, 2018, the exchange relationship of shares, the legal feasibility Report and the technical, economic and financial feasibility Report of the merger between Banco Macro SA and Banco del Tucumán SA.

- 76 -

NOTES TO THE CONDENSED SEPARATE INTERIM FINANCIAL STATEMENTS

AS OF SEPTEMBER 30, 2019

(Translation of Financial statements originally issued in Spanish – See Note 37)

(Figures expressed in thousands of Pesos)

For further information related to this subject, see additionally note 2 to the condensed consolidated interim financial statements.

BASIS FOR THE PREPARATION OF THESE FINANCIAL STATEMENTS AND APPLICABLE ACCOUNTING STANDARDS

On February 12, 2014 the BCRA, through Communiqué “A” 5541 established the general guidelines towards conversion to the IFRS issued by the International Accounting Standards Board (IASB) for preparing the financial statements of the entities under its supervision, for the annual fiscal years beginning on January 1, 2018 as well as those of interim-periods.

Additionally, through Communiqués “A” 6114, the BCRA set specific guidelines within the scope of such convergence process, among which it defined (i) the transitory exception to the application of section 5.5 “Impairment” of the IFRS 9 “Financial Instruments” (sections B5.5.1 to B5.5.55) up to the fiscal years beginning as of January 1, 2020, considering BCRA Communiqué “A” 6778; and (ii) in order to calculate the effective interest rate of assets and liabilities so requiring it for the measurement thereof, pursuant to IFRS 9, up to December 31, 2019, the Bank may transitorily make a global estimate of the calculation of the effective interest rate on a group of financial assets or liabilities with similar characteristics which shall be applied such effective interest rate. If section 5.5 “Impairment”, mentioned in (i) above had applied, according to a global estimation performed by the Bank, as of September 30, 2019 and December 31, 2018, the shareholders’ equity would have increased by 1,476,601 and 202,257, respectively. The figures stated as of September 30, 2019 includes 1,476,799 generated by the allowance mentioned in note 10 to the condensed consolidated interim financial statements.

As of September 30, 2019, the conditions to apply inflation adjustments in the separate financial statement for the nine-month period ended on that date, as established by IAS 29 “Financial Reporting in Hyperinflationary Economy” were met. However, for the reasons described in section “measuring unit” of this note, financial institutions, transitorily, cannot apply the abovementioned standard.

Note 3 to the condensed consolidated interim financial statements presents a detailed description of the basis for the presentation of these condensed separate interim financial statements. The main accounting policies used and the relevant information of the subsidiaries as well as all that is explained therein shall apply to these condensed separate interim financial statements.

These condensed separate interim financial statements, were prepared in accordance with the framework set forth by the Central Bank as mentioned in the previous paragraphs, for which these condensed separate interim financial statements, are based on IAS 34 “Interim Financial Reporting”. In that sense, these condensed separate interim financial statements include all the necessary information for an appropriate understanding, by the users thereof, of the basis for the preparation and disclosure used therein, as well as the relevant events and transactions occurred after the issuance of the last annual separate financial statements for the fiscal year ended December 31, 2018. Nevertheless, the present condensed separate interim financial statements do not include all the information or all the disclosures required for the annual separate financial statements prepared in accordance with the IAS 1 “Presentation of Financial Statements”. Therefore, these condensed separate interim Financial Statements must be read together with the annual separate financial statements for the fiscal year ended December 31, 2018, already issued.

Measuring unit

- 77 -

NOTES TO THE CONDENSED SEPARATE INTERIM FINANCIAL STATEMENTS

AS OF SEPTEMBER 30, 2019

(Translation of Financial statements originally issued in Spanish – See Note 37)

(Figures expressed in thousands of Pesos)

The nonrecognition of changes in the general purchasing power under hyperinflationary conditions, may distort accounting information and, therefore, this situation should be taken into account in the interpretation of the Bank’s information on these condensed separate interim financial statements over financial position, the result of its operations and its cash flows.

Below there is a description of the main impacts if IAS 29 were to be applied:

(a)

Financial Statements shall be restated considering the changes in the general purchasing power of the currency to ensure that they are stated in the current measuring unit at end of the reporting period.

(b)

To sum up, the restating mechanism provided by IAS 29 is as follows:

(i)

(ii)

Assets and liabilities subject to adjustments based on specific agreements will be adjusted in accordance with such agreements.

(iii)

(iv)

(v)

When an entity capitalizes borrowing cost in the nonmonetary assets, the part of the borrowing cost that compensates for the inflation during the same period will not be capitalized.

- 78 -

NOTES TO THE CONDENSED SEPARATE INTERIM FINANCIAL STATEMENTS

AS OF SEPTEMBER 30, 2019

(Translation of Financial statements originally issued in Spanish – See Note 37)

(Figures expressed in thousands of Pesos)

(vi)

(vii)

(viii)

If the Bank, according to a global estimation, had applied IAS 29, the Shareholders’ equity as of September 30, 2019 and December 31, 2018 would have increased by 12,562,072 and 29,366,178, respectively, including the effects for the application of section 5.5. “Impairment” of the IFRS 9 abovementioned. On the other hand, the comprehensive income for the nine-month period would have decreased by 15,583,888.

Subsidiaries

As mentioned in note 1, the Bank performs certain transactions through its subsidiaries.

Subsidiaries are all the entities controlled by the Bank. An entity controls another entity when it is exposed, or has rights, to variable returns from its continuing involvement with such other entity, and has the ability to use its power to direct the operating and financing policies of such other entity, to affect the amounts of such returns.

As provided under IAS 27 “Consolidated and Separate Financial Statements”, investments in subsidiaries were accounted for using the “equity method”, established in IAS 28. When using this method, investments are initially recognized at cost, and such amount increases or decreases to recognize investor’s interest in profits and losses of the entity after the date of acquisition or creation.

Shares in profits and losses of subsidiaries and associates are recognized under “Income from subsidiaries, associates and joint ventures” in the statement of income. Ownership interest in other comprehensive income of subsidiaries is accounted for under “Income for the period in other comprehensive income of subsidiaries, associates and joint ventures accounted for using the participation method”, in the statement of other comprehensive income.

Transcription in the Books of Accounts

As of the date of these condensed separate interim financial statements, the same are in the process of being transcribed in the Books of Accounts of Banco Macro SA.

New standards adopted

New standards adopted are described in note 3 to the condensed consolidated interim financial statements.

New pronouncements

New pronouncements are described in note 3 to the condensed consolidated interim financial statements.

- 79 -

NOTES TO THE CONDENSED SEPARATE INTERIM FINANCIAL STATEMENTS

AS OF SEPTEMBER 30, 2019

(Translation of Financial statements originally issued in Spanish – See Note 37)

(Figures expressed in thousands of Pesos)

CONTINGENT TRANSACTIONS

In order to meet specific financial needs of customers, the Bank’s credit policy also includes, among others, the granting of guarantees, securities, bonds, letters of credit and documentary credits. Although these transactions are not recognized in the statement of financial position, since they imply a possible liability for the Bank, they expose the Bank to credit risks other than those recognized in the statement of financial position and are, therefore, an integral part of the total risk of the Bank.

As of September 30, 2019 and December 31, 2018, the Bank maintains the following contingent transactions:

	09/30/2019		12/31/2018
Undrawn commitments of credit cards and checking accounts		87,251,476		89,947,565
Overdraft and unused agreed commitments (*)		2,472,081		634,288
Guarantees granted (*)		706,074		940,990
Letters of credit		312,141		256,788
		90,741,772		91,779,631

(*) Includes transactions not covered by BCRA debtor classification standards. For overdraft and unused agreed commitments, it includes an amount of 710,153 and 221,220, as of September 30, 2019 and December 31, 2018, respectively. For guarantees granted it includes the amount of 185,942 and 166,650, as of September 30, 2019 and December 31, 2018, respectively.

Risks related to the contingent transactions described above have been evaluated and are controlled within the framework of the Bank’s credit risk policy detail in note 39 to the consolidated financial statements as of December 31, 2018, already issued.

FAIR VALUE QUANTITATIVE AND QUALITATIVE DISCLOSURES

Note 5 to the condensed consolidated interim financial statements describes the methods and assumptions used to determine the fair value, both of the financial instruments recognized at fair value as of those not accounted for at such fair value in these condensed separate interim financial statements. In addition, the Bank discloses the relevant information as to instruments included in Level 3 of the fair value hierarchy.

Fair value hierarchy

The Bank uses the following hierarchy to determine and disclose the fair value of financial instruments, according to the valuation technique applied:

- 80 -

NOTES TO THE CONDENSED SEPARATE INTERIM FINANCIAL STATEMENTS

AS OF SEPTEMBER 30, 2019

(Translation of Financial statements originally issued in Spanish – See Note 37)

(Figures expressed in thousands of Pesos)

The following tables show the hierarchy in the Bank’s financial assets and liabilities at fair value measurement, as of September 30, 2019 and December 31, 2018:

Description	Financial assets and financial liabilities measured at fair value on a recurring basis as of September 30, 2019
	Total		Level 1		Level 2		Level 3
Financial assets

At fair value through profit or loss
Debt Securities at fair value through profit or loss		1,086,146		301,169		62,362		722,615
Derivative Financial Instruments		56,436		13,254		43,182
Other financial assets		24,437						24,437
Financial assets delivered as guarantee		60,920		60,920
Equity instruments at fair value through profit or loss		1,505,187		8,382				1,496,805

At fair value through OCI
Other debt securities		54,312,070		38,443,759		15,868,311
Financial assets delivered as guarantee		1,020,126		1,020,126
Total		58,065,322		39,847,610		15,973,855		2,243,857
Financial liabilities

At fair value through profit or loss
Derivatives financial instruments		147,309		2,385		144,924
Total		147,309		2,385		144,924

Description	Financial assets and financial liabilities measured at fair value on a recurring basis as of December 31, 2018
	Total		Level 1		Level 2		Level 3
Financial assets

At fair value through profit or loss
Debt Securities at fair value through profit or loss		2,150,737		591,483		268,202		1,291,052
Derivative Financial Instruments		14,555		10,994		3,561
Other financial assets		91,168						91,168
Financial Assets delivered as guarantee		150,456		150,456
Equity instruments at fair value through profit or loss		47,020		4,777				42,243

At fair value through OCI
Other debt securities		55,296,382		41,508,836		13,787,546
Total		57,750,318		42,266,546		14,059,309		1,424,463

Financial liabilities

At fair value through profit or loss
Derivatives financial instruments		1,369		593		776
Total		1,369		593		776

Below there is the reconciliation between the amounts at the beginning and the end of the period or fiscal year, as applicable, of the financial instruments recognized at fair value, using the valuation technical information based on the Bank’s own assumptions, as of September 30, 2019 and December 31, 2018:

- 81 -

NOTES TO THE CONDENSED SEPARATE INTERIM FINANCIAL STATEMENTS

AS OF SEPTEMBER 30, 2019

(Translation of Financial statements originally issued in Spanish – See Note 37)

(Figures expressed in thousands of Pesos)

	Fair values using valuation techniques based on the Bank’s own assumptions (level 3) September 30, 2019
Description	Debt Securities			Other financial assets			Equity instruments at fair value through profit or loss
Amount at the beginning		1,291,052			91,168			42,243
Transfers to Level 3
Transfers from Level 3
Profit and loss		397,842			8,946			31,629
Recognition and derecognition		(966,279	)		(75,677	)		1,422,933	(*)
Amount at end of the period		722,615			24,437			1,496,805

(*) It is related to the reclassification according to IFRS 5 of non current assets held for sale. Additionally, see note 10 to the condensed consolidated interim financial statements.

	Fair values using valuation techniques based on the Bank’s own assumptions (level 3) December 31, 2018
Description	Debt securities			Other financial assets			Investments in equity instruments
Amount at the beginning		35,841			161,751			33,197
Transfers to Level 3
Transfers from Level 3
Profit and loss		(200,279	)		(92,022	)		9,046
Recognition and derecognition		1,455,490			21,439
Amount at end of the fiscal year		1,291,052			91,168			42,243

Instruments measured as level 3 include mainly equity instruments at fair value through profit or loss and debt securities, for which the construction of fair values was obtained based on the Bank’s own assumptions that are not easily observable in the market.

Changes in fair value levels

As of September 30, 2019 and December 31, 2018, the Bank has not recognized any transfers between levels 1, 2 and 3 of the fair value hierarchy.

Financial assets and liabilities not recognized at fair value

The following table shows a comparison between the fair value and the carrying amount of financial instruments not recognized at fair value as of September 30, 2019 and December 31, 2018:

	09/30/2019
	Carrying amount		Level 1		Level 2		Level 3		Fair value
Financial assets
Cash and deposits in banks		90,631,294		90,631,294						90,631,294
Other financial assets		2,824,705		2,824,705						2,824,705
Loans and other financing		180,080,921				125,621		159,321,194		159,446,815
Other debt securities		20,141,025		2,317,264		16,919,341		599,465		19,836,070
Financial assets delivered as guarantee		8,725,645		7,262,402						7,262,402
		302,403,590		103,035,665		17,044,962		159,920,659		280,001,286

- 82 -

NOTES TO THE CONDENSED SEPARATE INTERIM FINANCIAL STATEMENTS

AS OF SEPTEMBER 30, 2019

(Translation of Financial statements originally issued in Spanish – See Note 37)

(Figures expressed in thousands of Pesos)

	09/30/2019
	Carrying amount		Level 1		Level 2		Level 3		Fair value
Financial liabilities
Deposits		241,522,783		120,276,636				121,362,996	241,639,632
Repo transactions		2,167,021		2,167,021					2,167,021
Other financial liabilities		14,783,581		13,662,026		1,117,087			14,779,113
Financing received from the BCRA and other financial entities		3,335,440		2,660,346		626,774			3,287,120
Issued corporate bonds		6,008,238				1,206,468		2,029,506	3,235,974
Subordinated corporate bonds		23,726,491				15,992,228			15,992,228
		291,543,554		138,766,029		18,942,557		123,392,502	281,101,088

	12/31/2018
	Carrying amount		Level 1		Level 2		Level 3		Fair value
Financial Assets
Cash and deposits in banks		68,178,537		68,178,537					68,178,537
Other financial assets		2,172,487		2,172,487					2,172,487
Loans and other financing		165,209,389				175,685		150,201,015	150,376,700
Other debt securities		7,358,084		173,337		7,158,360			7,331,697
Financial assets delivered as guarantee		6,173,482		6,141,490		31,992			6,173,482
		249,091,979		76,665,851		7,366,037		150,201,015	234,232,903

Financial liabilities
Deposits	219,761,923	99,926,237		119,925,037	219,851,274
Repo transactions	164,469	164,469			164,469
Other financial liabilities	14,128,235	13,962,137	166,522		14,128,659
Financing received from the BCRA and other financial entities	3,297,393	2,532,284	731,729		3,264,013
Issued corporate bonds	6,388,191		4,992,566		4,992,566
Subordinated corporate bonds	15,288,390		12,260,778		12,260,778
	259,028,601	116,585,127	18,151,595	119,925,037	254,661,759

INVESTMENTS IN ASSOCIATES AND JOINT ARRANGEMENTS

The Bank’s interests on associates and joint ventures are disclosed in note 6 to the condensed consolidated interim financial statements.

OTHER FINANCING AND NON FINANCING ASSETS

The breakdown of other financial and non financial assets as of September 30, 2019 and December 31, 2018 is as follows:

Other financial assets	09/30/2019			12/31/2018
Sundry debtors (note 10)		4,145,636			1.676.034
Amounts receivables from spot sales of foreign currency pending settlements		47,109			235.643
Private securities		24,437			91.168
Amounts receivables from spot sales of government securities pending settlements		2,937			253.992
Other		112,658			11.749
Allowances (note10)		(1,483,635	)		(4.931	)
		2,849,142			2.263.655

- 83 -

NOTES TO THE CONDENSED SEPARATE INTERIM FINANCIAL STATEMENTS

AS OF SEPTEMBER 30, 2019

(Translation of Financial statements originally issued in Spanish – See Note 37)

(Figures expressed in thousands of Pesos)

Other non financial assets	09/30/2019		12/31/2018
Investment in property (Exhibit F)		433,970		213,874
Advanced prepayment		321,872		141,654
Prepayments for the purchase of assets		159,398		159,231
Tax advances		30,133		33,185
Other		45,887		81,295
		991,260		629,239

RELATED PARTIES

A related party is a person or entity that is related to the Bank:

has control or joint control of the Bank;

has significant influence over the Bank;

is a member of the key management personnel of the Bank or of a parent of the Bank;

members of the same group;

one entity is an associate (or an associate of a member of a group of which the other entity is a member).

The amounts related to transactions generated with related parties as of September 30, 2019 and December 31, 2019 for the periods or fiscal year, as applicable, are as follows:

	Information as of September 30, 2019
	Main subsidiaries
	Banco del Tucumán SA		Macro Bank Limited		Macro Securities SA		Associates		Key management personnel		Other related parties		Total
ASSETS

Cash and deposits in banks				461									461
Other financial assets		3,108											3,108
Loans and other financing (1)
Documents												68,410	68,410
Overdrafts										91		927,879	927,970
Credit cards										29,764		7,579	37,343
Leases						3,891						7,272	11,163
Mortgage loans										61,627			61,627
Other loans												355,278	355,278
Guarantees granted												779,416	779,416

Total assets		3,108		461		3,891				91,482		2,145,834	2,244,776

LIABILITIES
Deposits				11		507,084		22,291		396,674		333,988	1,260,048
Derivative financial liabilities												133,615	133,615
Other financial liabilities						139,150				62		135,151	274,363

Total liabilities				11		646,234		22,291		396,736		602,754	1,668,026

(1)

The maximum financing amount for loans and other financing as of September 30, 2019 for Banco del Tucumán SA, Macro Securities SA, Key management personnel and other related parties amounted to 2,980,000, 5,188, 124,914 and 3,374,317, respectively.

- 84 -

NOTES TO THE CONDENSED SEPARATE INTERIM FINANCIAL STATEMENTS

AS OF SEPTEMBER 30, 2019

(Translation of Financial statements originally issued in Spanish – See Note 37)

(Figures expressed in thousands of Pesos)

	Information as of December 31, 2018
	Main subsidiaries
	Banco del Tucumán SA		Macro Bank Limited		Macro Securities SA		Associates		Key management personnel		Other related parties		Total
ASSETS

Cash and deposits in banks				583										583
Other financial assets		2,504				25,276		20,660						48,440
Loans and other financing (1)
Documents												331,265		331,265
Overdrafts						6				3,505		143,936		147,447
Credit cards						286				17,012		50,948		68,246
Leases						5,746						1,407		7,153
Personal loans										1,003				1,003
Mortgage loans										51,559				51,559
Other loans												232,670		232,670
Guarantees granted												391,699		391,699
Other nonfinancial assets						83,178								83,178

Total assets		2,504		583		114,492		20,660		73,079		1,151,925		1,363,243

LIABILITIES
Deposits				13		311,073		1,774,149		4,859,377		589,610		7,534,222
Other financial liabilities								101,232		29		514		101,775
Financing received from the BCRA and other financial entities		301,742												301,742
Issued corporate bonds						11,231								11,231
Subordinated corporate bonds												46,605		46,605

Total Liabilities		301,742		13		322,304		1,875,381		4,859,406		636,729		7,995,575

(1)

As of September 30, 2019 and 2018, income (loss) related to transactions generated with related parties are as follows:

	Information as of September 30, 2019
	Main subsidiaries
	Banco del Tucumán SA			Macro Bank Limited		Macro Securities SA		Associates			Key management personnel			Other related parties			Total
INCOME / (LOSS)
Interest income		33,844					4,448					2,574			113,510			154,376
Interest expense		(65,981	)						(1,275	)		(641,000	)		(163,836	)		(872,092	)
Commissions income		6					424		129			17			3,176			3,752
Net loss from measurement of financial instruments at fair value through profit or loss												(14,508	)		(18,864	)		(33,372	)
Other operating income		25,940			2										21			25,963
Administrative expenses															(17,419	)		(17,419	)
Other operating expenses															(51,757	)		(51,757	)

Income / (Loss)		(6,191	)		2		4,872		(1,146	)		(652,917	)		(135,169	)		(790,549	)

- 85 -

NOTES TO THE CONDENSED SEPARATE INTERIM FINANCIAL STATEMENTS

AS OF SEPTEMBER 30, 2019

(Translation of Financial statements originally issued in Spanish – See Note 37)

(Figures expressed in thousands of Pesos)

	Information as of September 30, 2018
	Main subsidiaries
	Banco del Tucumán SA			Macro Bank Limited		Macro Securities SA		Associates			Key management personnel			Other related parties			Total
INCOME / (LOSS)
Interest income		352,190					1,756					1,167			31,998		387,111
Interest expense		(2,781	)						(97,712	)		(130,701	)		(412	)	(231,606	)
Commissions income		7					251		82			13			4,153		4,506
Other operating income		18,279			29										11		18,319
Administrative expenses		(4	)												(7,022	)	(7,026	)
Other operating expenses									(793,188	)(1)					(17,643	)	(810,831	)

Income / (loss)		367,691			29		2,007		(890,818	)		(129,521	)		11,085		(639,527	)

(1)

These losses are mainly generated by debit and credit cards processing expenses billed by Prisma Medios de Pago SA.

Transactions generated by the Bank with related parties for transactions arranged within the usual and ordinary course of business were performed in normal market conditions, both as to interest rates and prices and as to the required guarantees.

The Bank does not have loans granted to Directors and other key management personnel secured with shares.

Total remunerations received as salary and bonus by the key management personnel as of September 30, 2019 and 2018, totaled 124,919 and 66,815, respectively.

In addition, fees received by the Directors as of September 30, 2019 and 2018 amounted to 797,186 and 420,052, respectively.

Additionally, the composition of the Board of Directors and key management personnel is as follows:

	09/30/2019		12/31/2018
Board of Directors		13		14
Senior manager of the key management personnel		9		10
		22		24

MODIFICATION OF FINANCIAL ASSETS

The financial assets modified during the period and their new gross carrying amounts are described in note 9 to the condensed consolidated interim financial statements. The net income for the modification is detailed in note 21.

10.

NONCURRENT ASSETS HELD FOR SALE – PRISMA MEDIOS DE PAGO SA

The Bank’s holding on Prisma Medios de Pago SA as of September 30, 2019 and December 31, 2018, is detailed in note 10 to the condensed consolidated interim financial statements.

11.

PROVISIONS

This item includes the amounts estimated to face a liability of probable occurrence, which if occurring, would originate a loss for the Bank.

Exhibit J “Changes in Provisions” presents the changes in provisions as of September 30, 2019 and December 31, 2018.

The expected terms to settle these obligations are as follows:

- 86 -

NOTES TO THE CONDENSED SEPARATE INTERIM FINANCIAL STATEMENTS

AS OF SEPTEMBER 30, 2019

(Translation of Financial statements originally issued in Spanish – See Note 37)

(Figures expressed in thousands of Pesos)

	09/30/2019
	Within 12 months		Beyond 12 months		09/30/2019		12/31/2018
For administrative, disciplinary and criminal penalties				718		718		718
Commercial claims		628,290		98,926		727,216		513,859
Labor lawsuits in progress		49,023		102,670		151,693		110,095
Pension funds - reimbursement		61,944		64,590		126,534		116,061
Other		207,025		31,850		238,875		229,021
		946,282		298,754		1,245,036		969,754

In the opinion of the Management of the Bank and its legal counsel, there are no other significant effects than those disclosed in these condensed separate interim financial statements, the amounts and settlement terms of which have been recognized based on the current value of such estimates, considering the probable settlement date thereof.

12.

OTHER FINANCIAL AND NON FINANCIAL LIABILITIES

The breakdown of other financial and non financial liabilities as of September 30, 2019 and December 31, 2018 is as follows:

Other financial liabilities	09/30/2019		12/31/2018
Credit card settlement - due to merchants		8,288,363		9,206,543
Payments orders pending settlement foreign exchange		2,710,647		1,584,612
Finance leases liabilities		927,960
Collections and other transactions on account and behalf others		779,384		723,352
Amounts payable for spot purchases of other pending settlement		106,600		284,535
Amounts payable for spot purchases of foreign currency pending settlement		47,287		678,307
Amounts payable for spot purchases of government securities pending settlement		33,404		146,910
Other		1,889,936		1,503,976
		14,783,581		14,128,235

Other non financial liabilities	09/30/2019		12/31/2018
Salaries and payroll taxes payables (note 32.1)		3,905,737		1,706,975
Withholdings		1,545,965		1,151,327
Taxes payables		1,414,288		1,220,814
Miscellaneous payables		665,495		577,105
Fees payables		460,065		140,036
Retirement pension payment orders pending settlement		187,022		234,275
Other		466,517		423,754
		8,645,089		5,454,286

- 87 -

NOTES TO THE CONDENSED SEPARATE INTERIM FINANCIAL STATEMENTS

AS OF SEPTEMBER 30, 2019

(Translation of Financial statements originally issued in Spanish – See Note 37)

(Figures expressed in thousands of Pesos)

13.

ANALYSIS OF FINANCIAL ASSETS TO BE RECOVERED AND FINANCIAL LIABILITIES TO BE SETTLED

The following tables show the analysis of financial assets and liabilities the Bank expects to recover and settle as of September 30, 2019 and December 31, 2018:

09/30/2019	Without due date	Total up to 12 months	Total over 12 months
Assets
Cash and deposits in banks	90,631,294
Debt securities at fair value through profit or loss	435,265	365,950	284,931
Derivative instruments		56,436
Other financial assets	2,121,414	727,728
Loans and other financing (1)	2,110,317	119,383,777	58,586,827
Other debt securities		63,123,025	11,330,070
Financial assets delivered as guarantee	7,262,402	2,544,289
Equity instruments at fair value through profit or loss	1,505,187
Total assets	104,065,879	186,201,205	70,201,828
Liabilities
Deposits	115,202,461	126,275,459	44,863
Derivative instruments		147,309
Repo transactions		2,167,021
Other financial liabilities		14,620,703	162,878
Financing received from BCRA and other financial entities		3,108,442	226,998
Issued corporate bonds		662,047	5,346,191
Subordinated corporate bonds		703,171	23,023,320
Total liabilities	115,202,461	147,684,152	28,804,250

12/31/2018	Without due date		Total up to 12 months		Total over 12 months
Assets
Cash and deposits in banks		68,178,537
Debt securities at fair value through profit or loss				1,349,106		801,631
Derivative instruments				14,555
Other financial assets		1,354,255		843,190		66,210
Loans and other financing (1)		1,198,862		106,719,119		57,291,408
Other debt securities				55,778,747		6,875,719
Financial assets delivered as guarantee		6,141,490		182,448
Equity instruments at fair value through profit or loss		47,020
Total assets		76,920,164		164,887,165		65,034,968
Liabilities
Deposits		97,057,501		122,635,635		68,787
Derivative instruments				1,369
Repo transactions				164,469
Other financial liabilities				13,982,160		146,075
Financing received from BCRA and other financial entities				3,127,049		170,344
Issued corporate bonds				306,639		6,081,552
Subordinated corporate bonds				165,070		15,123,320
Total liabilities		97,057,501		140,382,391		21,590,078

(1)

The amounts included in “without due date”, are related with the non-performing portfolio.

- 88 -

NOTES TO THE CONDENSED SEPARATE INTERIM FINANCIAL STATEMENTS

AS OF SEPTEMBER 30, 2019

(Translation of Financial statements originally issued in Spanish – See Note 37)

(Figures expressed in thousands of Pesos)

14.

DISCLOSURES BY OPERATING SEGMENT

The Bank has an approach of its banking business that is described in note 14 to the condensed consolidated interim financial statements.

15.

INCOME TAX

Inflation adjustment on income tax

Tax Reform Act 27430, amended by Act 27468, established the following, regarding to inflation adjustment on income tax for the fiscal years beginning on January 1, 2018.

Such adjustment will be applicable in the fiscal year in which the variation of the IPC will be higher than 100% for the thirty-six months before the end of the tax period;

ii)

iii)

At the closing date of an intermediate period, the Bank shall assess whether, at the closing date of the fiscal year, the conditions established by the income tax Act to practice the inflation adjustment are met. The available information at the issuance of these condensed separate interim financial statements related to changes of the CPI, confirmed that such conditions are met. As a consequence, the current and deferred income tax was recognized for the nine-month period ended September 30, 2019, including the effects of the application of the inflation adjustment on income taxes established by Law.

As a result of the assessment made by the legal and tax advisors and based on related case law, the Bank considers that is probable to obtain a final probable resolution. As of the date of issuance of these condensed separate interim financial statements, AFIP has not issued a resolution regarding the actions filed.

The main items of income tax expense in the condensed separate interim financial statements are as follows:

	09/30/2019						09/30/2018
	Accumulated from beginning of year up to 09/30/2019			Quarter ended 09/30/2019			Accumulated from beginning of year up to 09/30/2018			Quarter ended 09/30/2018
Current income tax expense		7,615,019			1,975,761			4,440,178			1,648,517
Gain for deferred income tax		(2,796,715	)(*)		(2,965,712	)		(296,925	)		(81,809	)
Income tax expense / (gain) recorded in the statement of income		4,818,304			(989,951	)		4,143,253			1,566,708
Income tax loss / (gain) recorded in other comprehensive income		76,512			94,770			(81,088	)		(54,517	)
		4,894,816			(895,181	)		4,062,165			1,512,191

(*) Includes gain effects for the deferred income tax as explained in 15.a).iii).

- 89 -

NOTES TO THE CONDENSED SEPARATE INTERIM FINANCIAL STATEMENTS

AS OF SEPTEMBER 30, 2019

(Translation of Financial statements originally issued in Spanish – See Note 37)

(Figures expressed in thousands of Pesos)

16.

COMMISSIONS INCOME

	09/30/2019				09/30/2018
Description	Accumulated from beginning of year up to 09/30/2019		Quarter ended 09/30/2019		Accumulated from beginning of year up to 09/30/2018		Quarter ended 09/30/2018
Performance obligations satisfied at a point in time
Commissions related to obligations		6,085,415		2,174,086		4,822,740		1,795,504
Commissions related to credit cards		3,182,625		1,223,133		2,271,960		776,626
Commissions related to insurance		606,439		204,248		519,961		178,226
Commissions related to trading and foreign exchange transactions		268,245		104,833		151,095		65,627
Commissions related to loans and other financing		102,126		44,946		57,406		17,720
Commissions related to securities		72,807		25,248		66,982		19,884
Commissions related to loans commitments and financial guarantees		2,749		308		178
Performance obligations satisfied over certain time period
Commissions related to credit cards		131,749		45,675		69,050		35,444
Commissions related to trading and foreign exchange transactions		15,404		10,498		10,799		4,089
Commissions related to loans and other financing		8,162		1,990		4,216		3,183
Commissions related to loans commitments and financial guarantees		1,831		1,831		743		468
Commissions related to obligations		1,796		411		3,471		1,264
		10,479,348		3,837,207		7,978,601		2,898,035

17.

DIFFERENCE IN QUOTED PRICES OF GOLD AND FOREIGN CURRENCY

	09/30/2019					09/30/2018
Description	Accumulated from beginning of year up to 09/30/2019			Quarter ended 09/30/2019		Accumulated from beginning of year up to 09/30/2018			Quarter ended 09/30/2018
Translation of foreign currency assets and liabilities into pesos		(352,826	)		268,711		(3,348,905	)		(1,902,350	)
Income from foreign currency exchange		1,991,417			1,137,054		949,230			505,362
		1,638,591			1,405,765		(2,399,675	)		(1,396,988	)

18.

OTHER OPERATING INCOME

	09/30/2019					09/30/2018
Description	Accumulated from beginning of year up to 09/30/2019		Quarter ended 09/30/2019			Accumulated from beginning of year up to 09/30/2018		Quarter ended 09/30/2018
Sale of noncurrent assets held for sale (note 10)		2,300,306		(40,386	)
Services		863,327		373,061			404,255		178,867

- 90 -

NOTES TO THE CONDENSED SEPARATE INTERIM FINANCIAL STATEMENTS

AS OF SEPTEMBER 30, 2019

(Translation of Financial statements originally issued in Spanish – See Note 37)

(Figures expressed in thousands of Pesos)

	09/30/2019					09/30/2018
Description (contd.)	Accumulated from beginning of year up to 09/30/2019		Quarter ended 09/30/2019			Accumulated from beginning of year up to 09/30/2018		Quarter ended 09/30/2018
Adjustments and interest from other receivables		350,559		130,365			151,312		71,674
Derecognition or substantial modification of financial liabilities		319,867		262,278			592,162		592,162
Sale of investment property and other nonfinancial assets		170,239		(31	)		137,227		104
Adjustments from other receivables with CER clauses		82,586		27,635
Initial recognition of loans		59,771		(8,055	)		95,719		45,970
Sale of property, plant and equipment		10,183		4,807			2,281		831
Other		629,069		203,497			427,466		145,117
		4,785,907		953,171			1,810,422		1,034,725

19.

EMPLOYEE BENEFITS

	09/30/2019				09/30/2018
Description	Accumulated from beginning of year up to 09/30/2019		Quarter ended 09/30/2019		Accumulated from beginning of year up to 09/30/2018		Quarter ended 09/30/2018
Salary		7,703,751		2,880,664		4,938,271		1,890,865
Payroll taxes (see note 32.1)		2,547,624		615,568		967,789		363,443
Compensations and bonuses to employees		978,051		476,884		470,684		163,345
Employee services		238,271		98,377		150,729		58,340
		11,467,697		4,071,493		6,527,473		2,475,993

20.

ADMINISTRATIVE EXPENSES

	09/30/2019				09/30/2018
Description	Accumulated from beginning of year up to 09/30/2019		Quarter ended 09/30/2019		Accumulated from beginning of year up to 09/30/2018		Quarter ended 09/30/2018
Fees to directors and statutory audits		1,118,510		539,647		442,031		162,010
Armored truck, documentation and events		858,380		422,504		529,665		186,257
Maintenance, conservation and repair expenses		818,416		291,928		553,726		217,428
Taxes		806,355		288,061		607,754		201,630
Security services		613,689		223,825		467,929		183,224
Electricity and communications		608,609		214,356		350,918		138,226
Other fees		533,881		202,698		345,231		133,624
Software		448,309		156,038		275,322		104,407
Advertising and publicity		231,292		99,962		160,387		78,374
Leases		120,378		32,130		208,886		81,220
Representation, travel and transportation expenses		88,259		31,888		65,048		23,858
Insurance		56,027		21,012		28,570		10,961
Stationery and office supplies		47,328		18,082		33,301		12,335
Hired administrative services		3,122		1,917		5,351		2,372
Other		236,914		84,578		189,845		75,141
		6,589,469		2,628,626		4,263,964		1,611,067

- 91 -

NOTES TO THE CONDENSED SEPARATE INTERIM FINANCIAL STATEMENTS

AS OF SEPTEMBER 30, 2019

(Translation of Financial statements originally issued in Spanish – See Note 37)

(Figures expressed in thousands of Pesos)

21.

OTHER OPERATING EXPENSES

	09/30/2019				09/30/2018
Description	Accumulated from beginning of year up to 09/30/2019		Quarter ended 09/30/2019		Accumulated from beginning of year up to 09/30/2018		Quarter ended 09/30/2018
Turnover tax		5,270,164		1,937,573		3,574,220		1,424,901
Modification of financial assets (note 9)		2,565,560		2,565,560
For credit cards		2,071,335		815,305		1,360,840		526,004
Taxes		875,794		142,261		736		249
Charges for other provisions		803,305		424,256		523,795		205,874
Deposit guarantee fund contributions		333,256		127,133		198,239		75,661
Donations		107,200		35,724		57,295		16,569
Interest on the lease liability		60,665		24,553
Insurance claims		33,370		13,205		36,607		15,042
Other		761,988		257,118		612,555		186,947
		12,882,637		6,342,688		6,364,287		2,451,247

22.

ADDITIONAL DISCLOSURES IN THE STATEMENT OF CASH FLOWS

The statement of cash flows presents the changes in cash and cash equivalents derived from operating activities, investing activities and financing activities during the period. For the preparation of the statement of cash flows the Bank adopted the indirect method for operating activities and the direct method for investment activities and financing activities.

The Bank considers as “Cash and cash equivalents” the item Cash and Deposits in Banks and those financial assets that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value.

For the preparation of the statement of cash flows the Bank considered the following:

Operating activities: the normal revenue-producing activities of the Bank as well as other activities that cannot qualify as investing or financing activities.

Investing activities: the acquisition, sale and disposal by other means of long-term assets and other investments not included in cash and cash equivalents.

The table below presents the reconciliation between the item “Cash and cash equivalents” in the statement of cash flows and the relevant accounting items of the Balance Sheet:

	09/30/2019		12/31/2018		09/30/2018		12/31/2017
Cash and deposits in banks		90,631,294		68,178,537		63,091,874		32,473,987
Debt securities at fair value								20,415
Other debt securities		54,269,065		55,069,908		34,648,009		19,294,526
		144,900,359		123,248,445		97,739,883		51,788,928

23.

CAPITAL STOCK

Note 23 to the condensed consolidated interim financial statements presents the changes in the Bank’s capital stock.

- 92 -

NOTES TO THE CONDENSED SEPARATE INTERIM FINANCIAL STATEMENTS

AS OF SEPTEMBER 30, 2019

(Translation of Financial statements originally issued in Spanish – See Note 37)

(Figures expressed in thousands of Pesos)

24.

DEPOSIT GUARANTEE INSURANCE

Note 25 to the condensed consolidated interim financial statements describes the Deposit Guarantee Insurance System and the scope thereof.

Banco Macro SA holds an 8.300% interest in the capital stock according to the percentages disclosed by BCRA Communiqué “B” 11816 issued on February 28, 2019.

25.

RESTRICTED ASSETS

As of September 30, 2019 and December 31, 2018 the following Bank’s assets are restricted:

Item	09/30/2019		12/31/2018
Debt securities at fair value through profit or loss and other debt securities
· Discount bonds in pesos regulated by Argentine legislation, maturing 2033 securing the sectorial Credit Program of the Province of San Juan. Production investment financing fund.		116,937		64,703
· Discount bonds in pesos regulated by Argentine legislation, maturing 2033 securing the regional economies Competitiveness Program – IDB Loan No. 3174/OC-AR.		97,209		108,633
· Discount bonds in pesos regulated by Argentine legislation, maturing 2033 used as security in favor of Sedesa (1).		89,147		92,659
· Discount bonds in pesos regulated by Argentine legislation, maturing 2033, for minimum statutory guarantee account required for Agents to act in the new categories contemplated under Resolution No. 622/13, as amended, of the CNV.		20,042		14,620
· Discount bonds in pesos regulated by Argentine legislation, maturing 2033 securing IBD Loan of the Province of San Juan No. 2763/OC-AR.		2,610		6,609
Subtotal Debt securities at fair value through profit or loss and other debt securities		325,945		287,224

Other financial assets
· Sundry debtors – attachment within the scope of the claim filed by the DGR against the City of Buenos Aires for differences in turnover tax		827		827
Subtotal other financial assets		827		827

Loans and other financing – Nonfinancial sector and foreign residents
· Interests derived from contributions made as contributing partner (2)		7,008		10,000
Subtotal loans and other financing -		7,008		10,000

Financial assets delivered as guarantee
· Special guarantee checking accounts opened in BCRA for transactions related to the electronic clearing houses and similar entities.		6,269,481		5,330,580
· Forward purchase for repo transactions		2,544,289		182,448
· Guarantee deposits related to credit and debit card transactions		673,501		715,022
· Other guarantee deposits		319,420		95,888
Subtotal Other financial assets delivered as guarantee		9,806,691		6,323,938
Other nonfinancial assets
· Real property related to call options sold		244,374		73,006
Subtotal Other nonfinancial assets		244,374		73,006
Total		10,384,845		6,694,995

(1)

(2)

In order to keep tax benefits related to these contributions, they must be maintained between two and three years from the date they were made. They correspond to the following risk funds: Risk Fund of Los Grobo SGR as of September 30, 2019 and December 31, 2018.

- 93 -

NOTES TO THE CONDENSED SEPARATE INTERIM FINANCIAL STATEMENTS

AS OF SEPTEMBER 30, 2019

(Translation of Financial statements originally issued in Spanish – See Note 37)

(Figures expressed in thousands of Pesos)

26.

TRUST AGREEMENTS

Note 27 to the condensed consolidated interim financial statements describe the different trust agreements according to the business purpose sought by the Bank, which may be summarized as follows:

26.1

Financial trusts for investment purposes

As of September 30, 2019 and December 31, 2018, the debt securities with investment purposes and certificate of participation in financial trusts for investment purpose total 1,370,747 and 1,380,994, respectively.

According to the latest accounting information available as of the date of issuance of these condensed separate interim financial statements, the corpus assets of the trusts exceed the carrying amount in the related proportions.

26.2

Trusts created using financial assets transferred by the Bank (Securitization)

Al of September 30, 2019 and December 31, 2018, considering the latest available accounting information as of the date of these condensed separate interim financial statements, the assets managed through Macro Fiducia SA of this type of trusts amount to 4,332 and 69,444, respectively.

26.3

Trusts guaranteeing loans granted by the Bank

As of September 30, 2019 and December 31, 2018, considering the latest available accounting information as of the date of these condensed separate interim financial statements, the assets managed by the Bank amount to 1,059,435 and 269,507, respectively.

26.4

Trusts in which the Bank acts as Trustee (Management)

27.

COMPLIANCE WITH CNV REGULATIONS

Considering Banco Macro SA’s current operations, and according to the different categories of agents established by CNV rules (as per General Resolution 622/2013, as amended), the Bank is registered with this agency as agent for the custody of collective investment products of mutual funds (AC PIC FCI, for their acronyms in Spanish), comprehensive clearing and settlement agent and trading agent (ALyC and AN – comprehensive, for their acronyms in Spanish), financial trustee Agent (FF, for its acronym in Spanish) and Guarantee Entity (in the process of being registered). Note 28.3 to the condensed consolidated interim financial statements describes the number of shares subscribed by third parties and the assets held by the Bank in its capacity as depositary company.

Additionally, the Bank’s shareholders’ equity exceeds the minimum amount required by this regulation, amounting to 21,000, as well as the minimum statutory guarantee account required of 12,000, which the Bank paid-in with government securities as described in note 25 to the these condensed separated interim financial statements and with cash deposits in BCRA accounts 00285 and 80285 belogning to the Bank.

In addition, note 28.2 to the condensed consolidated interim financial statements presents the general policy of documents in custody, describing which information has been disclosed and delivered to third parties for custody.

- 94 -

NOTES TO THE CONDENSED SEPARATE INTERIM FINANCIAL STATEMENTS

AS OF SEPTEMBER 30, 2019

(Translation of Financial statements originally issued in Spanish – See Note 37)

(Figures expressed in thousands of Pesos)

28.

ACCOUNTING ITEMS THAT IDENTIFY THE COMPLIANCE WITH MINIMUM CASH REQUIREMENTS

The items recognized by the Bank to constitute the minimum cash requirement effective for September 2019 are listed below, indicating the amounts as of month-end of the related items:

Description	Banco Macro SA
Cash and deposits in banks
Amounts in BCRA accounts		51,852,760
Other debt securities
BCRA Internal Bills computable for the minimum cash requirements		23,320,035
Government securities computable for the minimum cash requirements		8,891,911
Financial assets delivered as guarantee
Special guarantee accounts with the BCRA		6,269,481
Total		90,334,187

29.

PENALTIES APPLIED TO THE FINANCIAL ENTITY AND SUMMARY PROCEEDINGS INITIATED BY THE BCRA

Note 30 to the condensed consolidated interim financial statements describes the penalties applied and the proceedings filed by the BCRA against the Bank, classified as follows:

Summary proceedings filed by the BCRA

Penalties applied by the BCRA

Penalties applied by the UIF

The Bank’s Management and its legal counsel consider no further significant accounting effects, other than those previous mentioned, should be recorded or disclosed.

30.

ISSUANCE OF CORPORATE BONDS

Note 31 to the condensed consolidated interim financial statements describes liabilities for corporate bonds recognized by the Bank as September 30, 2019 and December 31, 2018, under the terms and values therein expressed.

The carrying amount for corporate bonds recorded by the Bank in its separate interim financial statements is as follows:

Corporate Bonds	Original value		Residual face value as of 09/30/2019		09/30/2019		12/31/2018
Subordinated Resettable – Class A	USD	400,000,000	USD	400,000,000		23,726,491		15,288,390
Nonsubordinated – Class B	Ps.	4,620,570,000	Ps.	3,391,052,000		3,076,448		3,460,899
Nonsubordinated – Class C	Ps.	3,207,500,000	Ps.	3,207,500,000		2,931,790		2,927,292
Total						29,734,729		21,676,581

- 95 -

NOTES TO THE CONDENSED SEPARATE INTERIM FINANCIAL STATEMENTS

AS OF SEPTEMBER 30, 2019

(Translation of Financial statements originally issued in Spanish – See Note 37)

(Figures expressed in thousands of Pesos)

31.

OFF BALANCE SHEET TRANSACTIONS

In addition to note 4, the Bank recognizes different off balance sheet transactions, pursuant to the BCRA standards. Below are the amounts of the main off balance sheet transactions as of September 30, 2019 and December 31, 2018:

Item	09/30/2019		12/31/2018
Custody of government and private securities and other assets held by third parties		69,386,966		63,662,007
Preferred and other collaterals received from customers (1)		47,563,656		44,383,138
Outstanding checks not paid yet		7,286,348		3,224,266
Checks already deposited and pending clearance		3,195,373		1,680,896

(1)

Related to collaterals used to secure loans transactions and other financing, under the applicable rules in force in this matter.

32.

TAX AND OTHER CLAIMS

32.1. Tax claims

Note 33.1 to the condensed consolidated interim financial statements describes the most relevant claims pending resolution and filed by AFIP and the tax authorities of the relevant jurisdiction.

The Bank’s Management and its legal counsel consider no further significant accounting effects could arise from the final outcome of the above mentioned proceedings other than those already disclosed.

32.2. Other claims

Note 33.2. to the condensed consolidated interim financial statements describes the most relevant claims pending resolution and filed by the different consumer´s associations.

33.

RESTRICTION ON DIVIDENDS DISTRIBUTION

Note 34 to the condensed consolidated interim financial statements describes the main legal provisions regulating the restriction on profit distribution.

34.

CAPITAL MANAGEMENT, CORPORATE GOVERNANCE TRANSPARENCY POLICY AND RISK MANAGEMENT

Note 35 to the condensed consolidated interim financial statements describes the main guidelines of the Bank related to capital management, corporate governance transparency policy and risk management.

Additionally, the table below shows the minimum capital requirements measured on a separate basis, effective for the month of September 2019 together with the integration thereof (computable equity) as of the end of such month:

Description	09/30/2019
Minimum capital requirements		24,387,331
Computable equity		82,489,785
Capital surplus		58,102,454

35.

CHANGES IN THE ARGENTINE MACROECONOMIC ENVIRONMENT OF THE FINANCIAL AND CAPITAL MARKETS

The international and domestic macroeconomics environments in which the Bank operates and its impacts are described in note 37 to the condensed consolidated interim financial statements.

- 96 -

NOTES TO THE CONDENSED SEPARATE INTERIM FINANCIAL STATEMENTS

AS OF SEPTEMBER 30, 2019

(Translation of Financial statements originally issued in Spanish – See Note 37)

(Figures expressed in thousands of Pesos)

36.

EVENTS AFTER REPORTING PERIOD

No other events occurred between the end of the reporting period and the issuance of these condensed separate interim financial statements that may materially affect the financial position or the profit and loss for the period, not disclosed in these condensed separate interim financial statements.

37.

ACCOUNTING PRINCIPLES – EXPLANATION ADDED FOR TRANSLATION INTO ENGLISH

These condensed separate interim financial statements are presented in accordance with the accounting framework established by the BCRA, as mention in note 3. These accounting standards may not conform with accounting principles generally accepted in other countries.

- 97 -

EXHIBIT A

DETAIL OF GOVERNMENT AND PRIVATE SECURITIES
AS OF SEPTEMBER 30, 2019 AND DECEMBER 31, 2018
(Translation of the financial statements originally issued in Spanish – See Note 37)
(Figures stated in thousands of pesos)

			Holdings							Position
			09/30/2019					12/31/2018		09/30/2019
				Fair						Position
			Fair	value		Book		Book		without			Final
Name	Identification		Value	level		amounts		amounts		options		Options	position
DEBT SECURITIES AT FAIR VALUE THROUGH PROFIT OR LOSS
- Local
Government securities
Discount bonds denominated in pesos at 5.83% - Maturity: 12-31-2033		45696			1		120,347		2,274		120,347			120,347
Bonds Par denominated in pesos - Maturity: 12-31-2038		45695			1		94,666		36,656		94,666			94,666
Debt Securities of Province of Río Negro in pesos - Badlar Private + 500 basis point - Maturity: 07-06-2020		32922			2		60,185		122,869		60,185			60,185
Consolidation bonds in pesos 6° Serie at 2%- Maturity: 03-15-2024		2420			1		48,167		48,396		48,167			48,167
Consolidation bonds in pesos 8° Serie - Maturity: 10-04-2022		2571			1		17,856		169,663		17,856			17,856
Federal government bonds in US dollars at 8.75 % - Maturity: 05-07-2024		5458			1		7,640		61,833		7,640			7,640
Bonds Par denominated in US dollars Argentina law - Maturity: 12-31-2038		45699			1		3,032				3,032			3,032
Federal government bonds in pesos- Badlar Private + 200 Basic Points - Maturity: 04-03-2022		5480			1		2,882		38,419		2,882			2,882
Bonds of the Argentina Republic in US dollars at 8,00 % - Maturity: 10-08-2020		5468			1		2,732		34,844		2,732			2,732
Bonds of the Argentina Republic treasury in pesos adjustable by CER - Maturity: 03-06-2023		5324			2		2,122		5,622		2,122			2,122
Other							3,902		331,640		64,822			64,822
Subtotal local government securities							363,531		852,216		424,451			424,451
Private securities
Debt Securities in Financial Trusts Secubono Series 191 Class A - Maturity: 06-29-2020		54375			3		112,083				112,083			112,083
Debt Securities in Financial Trusts Surcos		80036			3		98,638				98,638			98,638
Debt Securities in Financial Trusts Agrocap		80039			3		89,147		130,735		89,147			89,147
Debt Securities in Financial Trusts Secubono		80038			3		77,346		79,203		77,346			77,346
Debt Securities in Financial Trusts Accicom Préstamos Personales		80035			3		74,268		32,716		74,268			74,268
Debt Securities in Financial Trust provisional Garbarino		80034			3		69,895		21,574		69,895			69,895
Debt Securities in Financial Trusts Chubut Regalías Hidrocarburíferas - Maturity: 07-01-2020		36425			3		35,461		48,366		35,461			35,461
Debt Securities in Financial Trusts Megabono Series 180 Class A - Maturity: 12-24-2019		53887			3		34,922		165,980		34,922			34,922
Debt Securities in Financial Trusts Secubono Series 189 Class A - Maturity: 03-30-2019		54228			3		31,977				31,977			31,977
Debt Securities in Financial Trusts Carfauto		80037			3		24,380				24,380			24,380
Other							74.498		819.947		74.498			74.498
Subtotal local private securities							722,615		1,298,521		722,615			722,615
TOTAL DEBT SECURITIES AT FAIR VALUE THROUGH PROFIT OR LOSS							1,086,146		2,150,737		1,147,066			1,147,066

- 98 -

EXHIBIT A

(continued)

DETAIL OF GOVERNMENT AND PRIVATE SECURITIES

AS OF SEPTEMBER 30, 2019 AND DECEMBER 31, 2018

(Translation of the financial statements originally issued in Spanish - See Note 37)

(Figures stated in thousands of pesos)

			Holdings								Position
			09/30/2019						12/31/2018		09/30/2019
					Fair						Position
			Fair		value		Book		Book		without			Final
Name		Identification	Value		level		amounts		amounts		options		Options	position
OTHER DEBT SECURITIES
Measured at fair value through other comprehensive income
- Local
Government securities
Discount bonds denominated in pesos at 5.83% - Maturity: 12-31-2033		45696				1		43,005		144,844		43,005			43,005
International bonds of the Argentina Republic in US dollars at 7.125 - Maturity: 06-28-2117		92208								81,630
Subtotal local government securities								43,005		226,474		43,005			43,005

Central Bank of Argentina Bills
Liquidity letters of Central Bank of Argentina in pesos - Maturity: 02-10-2019		80010				1		16,936,431				17,932,692			17,932,692
Liquidity letters of Central Bank of Argentina in pesos - Maturity: 10-04-2019		80014				2		15,868,311				15,868,311			15,868,311
Liquidity letters of Central Bank of Argentina in pesos - Maturity: 10-03-2019		80012				1		10,914,556				10,938,422			10,938,422
Liquidity letters of Central Bank of Argentina in pesos - Maturity:. 10-01-2019		80008				1		10,549,767				10,549,767			10,549,767
Liquidity letters of Central Bank of Argentina in pesos - Maturity:. 01-04-2019		80007								15,546,415
Liquidity letters of Central Bank of Argentina in pesos - Maturity: 01-08-2019		80010								13,787,546
Liquidity letters of Central Bank of Argentina in pesos - Maturity:. 01-02-2019		80005								12,404,850
Liquidity letters of Central Bank of Argentina in pesos - Maturity:. 01-03-2019		80006								7,926,384
Liquidity letters of Central Bank of Argentina in pesos - Maturity: 01-07-2019		80009								5,404,713
Subtotal Central Bank of Argentina Bills								54,269,065		55,069,908		55,289,192			55,289,192

Total Other debt securities measured at fair value though other comprehensive income								54,312,070		55,296,382		55,332,197			55,332,197

Measured at amortized cost
- Local
Government securities
Bonds of the Argentina Republic in pesos fixed rate 26 % - Maturity: 11-21-2020		5330		8,925,829		2		9,071,577		7,201,040		9,343,572			9,343,572
Bonds of the Argentina Republic treasury in pesos adjustable by CER - Maturity: 07-22-2021		5315		1,509,768		1		1,595,264				2,227,890			2,227,890
Letters of National treasury with capitalization in pesos - Maturity: 08-30-2019	(*)	5335		1,499,392		2		1,426,455				1,490,992			1,490,992
Letters of National treasury with capitalization in pesos - Maturity: 05-13-2019	(*)	5343		962,400		2		1,203,127				1,293,329			1,293,329
Letters of National treasury with capitalization in pesos - Maturity: 09-13-2019	(*)	5337		1,062,010		2		963,038				1,055,178			1,055,178
Letters of National treasury with capitalization in pesos - Maturity: 08-29-2020	(*)	5341		804,743		2		868,178				868,178			868,178
Letters of National treasury with capitalization in pesos - Maturity: 10-31-2019	(*)	5269		588,436		2		740,261				740,261			740,261
Discount bonds denominated in pesos at 5.83% - Maturity: 12-31-2033		45696		161,443		1		297,353		157,044		297,353			297,353
Letters of the federal treasury adjustable by CER - Maturity: 02-26-2020	(*)	5290		230,864		2		183,965				183,965			183,965
Other	(*)							339,292				651,034			651,034
Subtotal local government securities								16,688,510		7,358,084		18,151,752			18,151,752

Private securities
Corporate bonds Banco Provincia de Buenos Aires Class 011 - Maturity: 11-15-2019		42074		579,053		1		566,394				566,394			566,394
Corporate bonds Banco Provincia de Buenos Aires Class 006 - Maturity: 11-01-2019		92644		254,437		2		247,373				247,373			247,373
Corporate bonds BBVA Banco Frances SA Class 026 - Maturity: 11-28-2019		54078		231,262		2		215,459				215,459			215,459
Corporate bonds Tarjeta Naranja Class 040 Series 001 - Maturity: 10-10-2019		53417		162,921		2		159,200				159,200			159,200
Corporate bonds Banco de Inversión y Comercio Exterior SA Class 004 - Maturity: 12-19-2019		52082		141,819		2		133,534				133,534			133,534
Debt Securities in Financial Trusts Secubono Series 192 Class A - Maturity: 07-28-2020		54392		121,964		3		125,704				125,704			125,704
Debt Securities in Financial Trusts Garbarino Series 153 - Maturity: 02-10-2020		54371		125,469		3		121,117				121,117			121,117
Corporate bonds Tarjeta Naranja Class 041 Series 001 - Maturity. 11-15-2019		53845		112,592		2		105,708				105,708			105,708
Corporate bonds Banco de la Ciudad de Buenos Aires Class 019 - Maturity: 11-22-2019		42076		102,269		2		97,473				97,473			97,473
Debt Securities in Financial Trusts Garbarino 153 Class B - Maturity: 06-10-2020		54404		91,204		3		95,035				95,035			95,035
Corporate bonds Banco Galicia SA Class 005 Series 001 - Maturity: 04-26-2020		53477		102,603		2		94,417				94,417			94,417
Debt Securities in Financial Trust Consubond Series 156 Class A - Maturity: 05-26-2020		54389		79,217		3		93,200				93,200			93,200
Debt Securities in Financial Trust Megabono 212 Class A - Maturity: 09-28-2020		80040		89,010		3		88,120				88,120			88,120
Corporate bonds YPF Class 017 - Maturity: 04-30-2020		38562		95,714		2		79,955				79,955			79,955
Corporate bonds HSBC Bank Argentina SA Class 007 - Maturity: 12-17-2020		53068		122,689		2		74,310				74,310			74,310
Corporate bonds Tarjeta Naranja Class 036 Series 002 - Maturity: 12-07-2019		52050		71,104		2		73,250				73,250			73,250
Corporate bonds Banco Provincia de Buenos Aires Class 012 - Maturity: 02-15-2020		42075		65,230		2		69,575				69,575			69,575
Corporate bonds Volkswagen Financieral Services Class 004 - Maturity: 02-27-2020		54076		81,184		2		69,304				69,304			69,304
Corporate bonds Banco Santander Río SA Class 019 - Maturity: 03-20-2020		52320		65,657		2		59,121				59,121			59,121
Corporate bonds BBVA Banco Frances SA Class 027 - Maturity: 08-28-2020		54079		79,624		2		55,853				55,853			55,853
Corporate bonds YPF SA Class 043 - Maturity: 10-21-2023		50939		59,276		2		54,172				54,172			54,172
Corporate bonds Tarjetas Cuyanas SA Class 027 - maturity: 02-10-2020		52227		55,954		2		49,463				49,463			49,463
Debt Securities in Financial Trust Garbarino 153 Class A - Maturity: 03-10-2020		54403		47,790		3		48,659				48,659			48,659
Other								676,119				676,119			676,119
Subtotal local private securities								3,452,515				3,452,515			3,452,515
Total Other debt securities measured at cost amortized								20,141,025		7,358,084		21,604,267			21,604,267
TOTAL OTHER DEBT SECURITIES								74,453,095		62,654,466		76,936,464			76,936,464

(*) The maturities disclosed are related to conditions of original issuance. See additionally Notes 9 and 37 to the condensed consolidated interim financial statements.

Delfín Jorge Ezequiel Carballo

Chairperson

- 99 -

EXHIBIT A

(continued)

DETAIL OF GOVERNMENT AND PRIVATE SECURITIES

AS OF SEPTEMBER 30, 2019 AND DECEMBER 31, 2018

(Translation of the financial statements originally issued in Spanish - See Note 37)

(Figures stated in thousands of pesos)

		Holdings							Position
		09/30/2019					12/31/2018		09/30/2019
			Fair						Position
		Fair	value		Book		Book		without			Final
Name	Identification	Value	level		amounts		amounts		options		Options	position
Equity Instruments
Measured at fair value through profit or loss
- Local
Prisma Medios de Pago SA	80031			3		1,420,696				1,420,696			1,420,696
Mercado Abierto Electrónico SA	80024			3		46,181		22,292		46,181			46,181
C.O.E.L.S.A	80025			3		9,605		4,826		9,605			9,605
Sedesa	80016			3		6,972		3,975		6,972			6,972
Argentina Clearing SA	80026			3		4,569		4,569		4,569			4,569
Matba Rofex SA	80032			3		2,237				2,237			2,237
Proin SA	80020			3		1,478		513		1,478			1,478
Mercado a Término Rosario SA	80021			3		1,426		3,663		1,426			1,426
Provincanje SA	80028			3		1,218		379		1,218			1,218
Sanatorio Las Lomas SA	80018			3		694		600		694			694
Other						510		457		510			510
Subtotal local						1,495,586		41,274		1,495,586			1,495,586

- Foreign
Banco Latinoamericano de Comercio Exterior SA	80028			1		8,382		4,777		8,382			8,382
Sociedad de Telecomunicaciones Financieras Interbancarias Mundiales	80029			3		1,219		969		1,219			1,219
Subtotal foreign						9,601		5,746		9,601			9,601
Total measured at fair value through profit or loss						1,505,187		47,020		1,505,187			1,505,187
TOTAL EQUITY INSTRUMENTS						1,505,187		47,020		1,505,187			1,505,187
TOTAL GOVERNMENT AND PRIVATE SECURITIES						77,044,428		64,852,223		79,588,717			79,588,717

Delfín Jorge Ezequiel Carballo

Chairperson

- 100 -

EXHIBIT B

CLASSIFICATION OF LOANS AND OTHER FINANCING

BY SITUATION AND COLLATERAL RECEIVED

AS OF SEPTEMBER 30, 2019 AND DECEMBER 31, 2018

(Translation of the financial statements originally issued in Spanish - See Note 37)

(Figures stated in thousands of pesos)

	09/30/2019		12/31/2018
COMMERCIAL
In normal situation		87,317,875		69,702,689
With senior “A” collateral and counter-collateral		2,395,485		2,542,734
With senior “B” collateral and counter-collateral		11,158,107		8,381,277
Without senior collateral or counter-collateral		73,764,283		58,778,678
Subject to special monitoring		713,232		213,632
In observation
With senior “A” collateral and counter-collateral		83,805		3,226
With senior “B” collateral and counter-collateral		186,729		68,007
Without senior collateral or counter-collateral		187,921		41,805
In negotiation or with financing agreements
With senior “A” collateral and counter-collateral				43,592
Without senior collateral or counter-collateral		254,777		57,002
Troubled		201,682		633,432
With senior “B” collateral and counter-collateral		62,659		179,598
Without senior collateral or counter-collateral		139,023		453,834
With high risk of insolvency		194,645		277,016
With senior “A” collateral and counter-collateral		9,174		1,223
With senior “B” collateral and counter-collateral		39,699		180,785
Without senior collateral or counter-collateral		145,772		95,008
Irrecoverable		17,983
With senior “B” collateral and counter-collateral		17,644
Without senior collateral or counter-collateral		339
Subtotal Commercial		88,445,417		70,826,769

Delfín Jorge Ezequiel Carballo

Chairperson

- 101 -

EXHIBIT B

(continued)

CLASSIFICATION OF LOANS AND OTHER FINANCING

BY SITUATION AND COLLATERAL RECEIVED

AS OF SEPTEMBER 30, 2019 AND DECEMBER 31, 2018

(Translation of the financial statements originally issued in Spanish - See Note 37)

(Figures stated in thousands of pesos)

	09/30/2019		12/31/2018
CONSUMER AND MORTGAGE
Performing		97,577,185		95,744,514
With senior “A” collateral and counter-collateral		1,808,397		2,949,577
With senior “B” collateral and counter-collateral		13,776,038		13,676,510
Without senior collateral or counter-collateral		81,992,750		79,118,427
Low risk		1,697,681		1,926,667
With senior “A” collateral and counter-collateral		62,081		48,130
With senior “B” collateral and counter-collateral		200,035		187,262
Without senior collateral or counter-collateral		1,435,565		1,691,275
Medium risk		1,368,539		1,250,021
With senior “A” collateral and counter-collateral		18,329		16,916
With senior “B” collateral and counter-collateral		187,371		74,792
Without senior collateral or counter-collateral		1,162,839		1,158,313
High risk		1,235,107		818,569
With senior “A” collateral and counter-collateral		9,253		13,707
With senior “B” collateral and counter-collateral		82,921		38,991
Without senior collateral or counter-collateral		1,142,933		765,871
Irrecuperable		491,568		211,895
With senior “A” collateral and counter-collateral		16,352		1,260
With senior “B” collateral and counter-collateral		107,389		26,682
Without senior collateral or counter-collateral		367,827		183,953
Irrecoverable according to Central Bank's rules		597		872
Without senior collateral or counter-collateral		597		872
Subtotal consumer and mortgage		102,370,677		99,952,538
Total		190,816,094		170,779,307

This exhibit discloses the contractual figures as established by the BCRA. The conciliation with the condensed separate interim statement of financial position, is listed below:

	09/30/2019		12/31/2018
Loans and other financing		180,080,921		165,209,389
+ Allowances for loans and other financing		4,504,123		3,875,164
+ Adjustment amortized cost and fair value		159,573		250,558
+ Debt securities of financial trust - Measured at amortized cost		625,286
+ Corporate bonds		2,851,990
Guarantees provided and contingent liabilities		2,594,201		1,444,196
Total computable items		190,816,094		170,779,307

Delfín Jorge Ezequiel Carballo

Chairperson

- 102 -

EXHIBIT C

CONCENTRATION OF LOANS AND FINANCING FACILITIES

AS OF SEPTEMBER 30, 2019 AND DECEMBER 31, 2018

(Translation of the financial statements originally issued in Spanish - See Note 37)

(Figures stated in thousands of pesos)

	09/30/2019				12/31/2018
Number of customers	Cut off balance		% of total portfolio		Cut off balance		% of total portfolio
10 largest customers		34,417,436		18.04		19,431,966		11.38
50 next largest customers		25,593,372		13.41		22,338,628		13.08
100 next largest customers		14,611,070		7.66		13,582,068		7.95
Other customers		116,194,216		60.89		115,426,645		67.59
Total (1)		190,816,094		100.00		170,779,307		100.00

(1) See reconciliation in Exhibit B

Delfín Jorge Ezequiel Carballo

Chairperson

- 103 -

EXHIBIT D

BREAKDOWN OF LOANS AND OTHER FINANCING BY TERMS

AS OF SEPTEMBER 30, 2019

(Translation of the financial statements originally issued in Spanish - See Note 37)

(Figures stated in thousands of pesos)

			Remaining terms to maturity
Item	Matured		Up to 1 month		Over 1 month and up to 3 months		Over 3 months and up to 6 months		Over 6 months and up to 12 months		Over 12 months and up to 24 months		Over 24 months		Total
Non-financial government sector - Central Bank				64,788		240,430		95,118		98,494		76,320				575,150
Financial sector				623,563		2,429,716		1,212,166		717,192		1,121,028				6,103,665
Non-financial private sector and foreign residents		2,289,373		66,438,559		24,321,163		29,392,402		24,089,686		34,949,402		58,236,313		239,716,898

Total		2,289,373		67,126,910		26,991,309		30,699,686		24,905,372		36,146,750		58,236,313		246,395,713

BREAKDOWN OF LOANS AND OTHER FINANCING BY TERMS

AS OF DECEMBER 31, 2018

(Translation of the financial statements originally issued in Spanish - See Note 37)

(Figures stated in thousands of pesos)

			Remaining terms to maturity
Item	Matured		Up to 1 month		Over 1 month and up to 3 months		Over 3 months and up to 6 months		Over 6 months and up to 12 months		Over 12 months and up to 24 months		Over 24 months		Total
Non-financial government sector - Central Bank				147,547		403,613		434,592		745,089		968,517		323,784		3,023,142
Financial sector				1,098,948		1,733,758		1,205,293		1,698,740		598,110		22,143		6,356,992
Non-financial private sector and foreign residents		1,844,588		49,760,432		21,985,020		23,678,562		27,665,062		30,337,330		60,455,954		215,726,948

Total		1,844,588		51,006,927		24,122,391		25,318,447		30,108,891		31,903,957		60,801,881		225,107,082

This exhibit disclosures contractual future cash flows that include interests and accessories to be accrued until maturity of the contracts.

Delfín Jorge Ezequiel Carballo

Chairperson

- 104 -

EXHIBIT F

CHANGE OF PROPERTY, PLANT AND EQUIPMENT

AS OF SEPTEMBER 30, 2019

(Translation of the financial statements originally issued in Spanish - See Note 37)

(Figures stated in thousands of pesos)

								Depreciation for the period
Item	Original value at beginning of fiscal year		Total life estimated in years	Increases		Decreases		Accumulated		Decrease		Of the period		At the end		Residual value at the end of the period
Cost
Real property		6,961,072	50		19,017		21,023		308,138		11,309		95,762		392,591		6,566,475
Furniture and facilities		588,044	10		39,710		28,080		161,859		27,807		44,048		178,100		421,574
Machinery and equipment		1,378,179	5		280,069		151,480		698,999		151,479		193,730		741,250		765,518
Vehicles		127,543	5		24,548		14,260		80,201		10,366		18,463		88,298		49,533
Work in progress		706,851			802,818		1										1,509,668
Right of use			5		898,210		16,107				2,183		157,089		154,906		727,197
Total property, plant and equipment		9,761,689			2,064,372		230,951		1,249,197		203,144		509,092		1,555,145		10,039,965

CHANGE OF PROPERTY, PLANT AND EQUIPMENT

AS OF DECEMBER 31, 2018

(Translation of the financial statements originally issued in Spanish - See Note 37)

(Figures stated in thousands of pesos)

								Depreciation for the fiscal year
Item	Original value at beginning of fiscal year		Total life estimated in years	Increases		Decreases		Accumulated		Decrease		For the fiscal year		At the end		Residual value at the end of the fiscal year
Cost
Real property		4,885,709	50		2,819,803		744,440		397,490		176,473		87,121		308,138		6,652,934
Furniture and facilities		339,327	10		254,999		6,282		126,282		10		35,587		161,859		426,185
Machinery and equipment		939,919	5		554,843		116,583		509,167				189,832		698,999		679,180
Vehicles		109,825	5		34,399		16,681		75,696		13,940		18,445		80,201		47,342
Work in progress		2,569,113			1,539,596		3,401,858										706,851
Total property, plant and equipment (1)		8,843,893			5,203,640		4,285,844		1,108,635		190,423		330,985		1,249,197		8,512,492

(1) During the fiscal year 2018, this item observed transfers to and from property, plant and equipment and/or non current assets held for sale.

Delfín Jorge Ezequiel Carballo

Chairperson

- 105 -

EXHIBIT F

(Continued)

CHANGE IN INVESTMENT PROPERTY

AS OF SEPTEMBER 30, 2019

(Translation of the financial statements originally issued in Spanish - See Note 37)

(Figures stated in thousands of pesos)

								Depreciation for the period
Item	Original Value at beginning of fiscal year		Useful life estimated in years	Increases		Decreases		Accumulated		Decrease		Of the period		At the end		Residual value at the end of the period
Cost
Rented properties		90,485	50						8,127				771		8,898		81,587
Other investment properties		137,606	50		222,431		22		6,090		5		1,547		7,632		352,383
Total investment property		228,091			222,431		22		14,217		5		2,318		16,530		433,970

CHANGE IN INVESTMENT PROPERTY

AS OF DECEMBER 31, 2018

(Translation of the financial statements originally issued in Spanish - See Note 37)

(Figures stated in thousands of pesos)

								Depreciation for the fiscal year
Item	Original Value at beginning of fiscal year		Useful life estimated in years	Increases		Decreases		Accumulated		Decrease		For the fiscal year		At the end		Residual value at the end of the fiscal year
Cost
Rented properties			50		90,485				8,027				100		8,127		82,358
Other investment properties		634,771	50		258,330		755,495		19,306		18,680		5,464		6,090		131,516
Total investment property (1)		634,771			348,815		755,495		27,333		18,680		5,564		14,217		213,874

(1) During the fiscal year 2018, this item observed transfers to and from property, plant and equipment and/or non current assets held for sale.

Delfín Jorge Ezequiel Carballo

Chairperson

- 106 -

EXHIBIT G

CHANGE IN INTANGIBLE ASSETS

AS OF SEPTEMBER 30, 2019

(Translation of the financial statements originally issued in Spanish - See Note 37)

(Figures stated in thousands of pesos)

								Depreciation for the period
Item	Original Value at beginning of fiscal year		Useful life estimated in years	Increases		Decreases		Accumulated		Decrease		Of the period		At the end		Residual value at the end of the period
Cost
Licenses		549,788	5		360,025		104,448		224,722		104,448		102,060		222,334		583,031
Goodwill - Business combination		210,927															210,927
Other intangible assets		1,847,186	5		692,673		300,694		791,322		300,694		308,285		798,913		1,440,252
Total intangible assets		2,607,901			1,052,698		405,142		1,016,044		405,142		410,345		1,021,247		2,234,210

CHANGE IN INTANGIBLE ASSETS

AS OF DECEMBER 31, 2018

(Translation of the financial statements originally issued in Spanish - See Note 37)

(Figures stated in thousands of pesos)

								Depreciation for the fiscal year
Item	Original Value at beginning of fiscal year		Useful life estimated in years	Increases		Decreases		Accumulated		Decrease		For the fiscal year		At the end		Residual value at the end of the fiscal year
Cost
Licenses		306,420			243,862		494		163,541		2		61,183		224,722		325,066
Goodwill - Business combination			5		210,927												210,927
Other intangible assets		1,179,178	5		740,976		72,968		511,548				279,774		791,322		1,055,864
Total intangible assets (1)		1,485,598			1,195,765		73,462		675,089		2		340,957		1,016,044		1,591,857

Delfín Jorge Ezequiel Carballo

Chairperson

- 107 -

EXHIBIT H

DEPOSIT CONCENTRATION

AS OF SEPTEMBER 30, 2019 AND DECEMBER 31, 2018

(Translation of the financial statements originally issued in Spanish - See Note 37)

(Figures stated in thousands of pesos)

	09/30/2019				12/31/2018
Number of customers	Outstanding balance		% of total portfolio		Outstanding balance		% of total portfolio
10 largest customers		14,399,271		5.96		17,296,726		7.87
50 next largest customers		13,047,538		5.40		15,385,676		7.00
100 next largest customers		9,220,144		3.82		10,281,792		4.68
Other customers		204,855,830		84.82		176,797,729		80.45

Total		241,522,783		100.00		219,761,923		100.00

Delfín Jorge Ezequiel Carballo

Chairperson

- 108 -

EXHIBIT I

BREAKDOWN OF FINANCIAL LIABILITIES

FOR RESIDUAL TERMS

AS OF SEPTEMBER 30, 2019

(Translation of the financial statements originally issued in Spanish - See Note 37)

(Figures stated in thousands of pesos)

	Remaining terms to maturity
Item	Up to 1 month		Over 1 month and up to 3 months		Over 3 months and up to 6 months		Over 6 months and up to 12 months		Over 12 months and up to 24 months		Over 24 months		Total
Deposits		214,290,772		25,259,197		3,621,143		1,296,992		44,543		19,545		244,532,192

From the non financial government sector		14,133,040		2,298,971		156,567		1,625						16,590,203
From the financial sector		293,021												293,021
From the non financial private sector and foreign residents		199,864,711		22,960,226		3,464,576		1,295,367		44,543		19,545		227,648,968

Derivative instruments		8,035		128,020		11,254								147,309

Repo transactions		2,167,021												2,167,021

Other financial entities		2,167,021												2,167,021

Other Financial Liabilities		14,562,590		33,803		31,139		37,570		154,233		26,727		14,846,062

Financing received from the Central Bank of Argentina and other financial institutions		596,713		793,253		1,682,423		75,046		189,011		65,656		3,402,102

Issued corporate bonds		357,901		252,804		384,791		966,854		3,808,077		3,394,799		9,165,226

Subordinated corporate bonds				777,037				777,037		1,554,074		32,345,463		35,453,611

Total		231,983,032		27,244,114		5,730,750		3,153,499		5,749,938		35,852,190		309,713,523

This exhibit discloses contractual future cash flows that include interests and accesories to be accrued until maturity of the contracts.

Delfín Jorge Ezequiel Carballo

Chairperson

- 109 -

ANEXO I

(Continued)

BREAKDOWN OF FINANCIAL LIABILITIES

FOR RESIDUAL TERMS

AS OF DECEMBER 31, 2018

(Translation of the financial statements originally issued in Spanish - See Note 37)

(Figures stated in thousands of pesos)

	Remaining terms to maturity
Item	Up to 1 month		Over 1 month and up to 3 months		Over 3 months and up to 6 months		Over 6 months and up to 12 months		Over 12 months and up to 24 months		Over 24 months		Total
Deposits		182,738,073		31,261,800		7,363,772		1,293,292		61,860		15,985		222,734,782

From the non-financial government sector		10,262,572		1,021,797		639,422		46,091		206				11,970,088
From the financial sector		148,269												148,269
From the non-financial private sector and foreign residents		172,327,232		30,240,003		6,724,350		1,247,201		61,654		15,985		210,616,425

Derivative instruments		1,019				350								1,369

Repo transactions		164,667												164,667

Other financial entities		164,667												164,667

Other Financial Liabilities		13,945,078		18,936		9,668		14,045		22,435		141,539		14,151,701

Financing received from the Central Bank of Argentina and other financial institutions		724,436		918,813		1,083,024		470,177		87,151		125,173		3,408,774

Issued corporate bonds		362,870				585,301		735,047		1,443,264		7,394,296		10,520,778

Subordinated corporate bonds						510,412		510,412		1,020,824		21,757,164		23,798,812

Total		197,936,143		32,199,549		9,552,527		3,022,973		2,635,534		29,434,157		274,780,883

This exhibit discloses contractual future cash flows that include interests and accessories to be accrued until maturity of the contracts.

Delfín Jorge Ezequiel Carballo

Chairperson

- 110 -

EXHIBIT J

CHANGES IN PROVISIONS

AS OF SEPTEMBER 30, 2019

(Translation of the financial statements originally issued in Spanish - See Note 37)

(Figures stated in thousands of pesos)

	Amounts at				Decreases
Item	beginning of fiscal year		Increases		Reversals		Charge off		09/30/2019
For Administrative, disciplinary and criminal sanctions		718		50				50		718
Other		969,036		803,305		18,045		509,978		1,244,318
Total Provisions		969,754		803,355		18,045		510,028		1,245,036

CHANGES IN PROVISIONS

AS OF DECEMBER 31, 2018

(Translation of the financial statements originally issued in Spanish - See Note 37)

(Figures stated in thousands of pesos)

	Amounts at				Decreases
Item	beginning of fiscal year		Increases		Reversals		Charge off		12/31/2018
For Administrative, disciplinary and criminal sanctions		718								718
Other		595,277		1,031,170		14,119		643,292		969,036
Total Provisions		595,995		1,031,170		14,119		643,292		969,754

Delfín Jorge Ezequiel Carballo

Chairperson

- 111 -

EXHIBIT K

COMPOSITION OF CAPITAL STOCK

AS OF SEPTEMBER 30, 2019

(Translation of the financial statements originally issued in Spanish - See Note 37)

(Figures stated in thousands of pesos)

Shares							Capital Stock
					Votes per		Issued
Class	Stock number		Face value		share		outstanding		In treasury	Paid in
Registered common stock A		11,235,670		1		5		11,236			11,236
Registered common stock B		628,162,076		1		1		628,162			628,162
Total		639,397,746						639,398			639,398

COMPOSITION OF CAPITAL STOCK

AS OF DECEMBER 31, 2018

(Translation of the financial statements originally issued in Spanish - See Note 37)

(Figures stated in thousands of pesos)

Shares							Capital Stock
					Votes per		Issued		In treasury
Class	Stocknumber		Facevalue		share		outstanding		(1)		Paid in
Registered common stock A		11,235,670		1		5		11,236				11,236
Registered common stock B		658,427,351		1		1		629,479		28,948		658,427
Total		669,663,021						640,715		28,948		669,663

(1)

See Note 23.

Delfín Jorge Ezequiel Carballo

Chairperson

- 112 -

EXHIBIT L

FOREIGN CURRENCY AMOUNTS

AS OF SEPTEMBER 30, 2019 AND DECEMBER 31, 2018

(Translation of the financial statements originally issued in Spanish - See Note 37)

(Figures stated in thousands of pesos)

	09/30/2019										12/31/2018
	Total parent		Total per currency
Item	company and local branches		US dollar		Euro		Real		Other		Total
ASSETS
Cash and deposits in banks		51,194,204		50,751,318		347,251		15,896		79,739		39,768,830
Debt securities at fair value through profit or loss		236,706		236,706								332,797
Other financial assets		2,142,127		2,142,127								1,375,996
Loans and other financing		54,466,390		54,466,390								45,803,582
Other financial institutions		192,696		192,696								480,324
From the non financial private sector and foreign residents		54,273,694		54,273,694								45,323,258
Other debt securities												81,630
Financial assets delivered as guarantee		1,687,893		1,687,893								916,165
Equity instruments at fair value through profit or loss		9,601		9,601								5,746
Investments in associates and joint ventures		1,842,616		1,842,616								1,417,060

TOTAL ASSETS		111,579,537		111,136,651		347,251		15,896		79,739		89,701,806

LIABILITIES
Deposits		76,511,644		76,511,644								69,034,060
Non financial government sector		2,170,210		2,170,210								2,008,915
Financial sector		219,811		219,811								100,200
Non financial private sector and foreign residents		74,121,623		74,121,623								66,924,945
Other financial liabilities		4,231,605		4,009,125		217,960				4,520		2,142,161
Financing from the Central Bank and other financial institutions		2,872,128		2,872,128								2,598,810
Subordinated corporate bonds		23,726,491		23,726,491								15,288,390
Provisions
Other non financial liabilities		50,277		50,277								29,566
TOTAL LIABILITIES		107,392,145		107,169,665		217,960				4,520		89,092,987

Delfín Jorge Ezequiel Carballo

Chairperson

- 113 -

EXHIBIT O

DERIVATIVE FINANCIAL INSTRUMENTS

AS OF SEPTEMBER 30, 2019

(Translation of the financial statements originally issued in Spanish - See Note 37)

(Figures stated in thousands of pesos)

Type of
contract

Purpose of
the
transactions
performed

Underlying asset

Type of settlement

Negotiation environment or
counter-party

Originally
agreed
weighted
monthly
average
term (in
months)

Residual
weighted
monthly
average
term (in
months)

Weighted
daily
average term
settlement of
differences
(in days)

Amount (*)

Futures

Intermediation - own account

Foreign currency

Daily settlement of differences

MAE (over-the-counter electronic market) (ROFEX)

2,056,800

Forward

Intermediation - own account

Foreign currency

Maturity settlement of differences

Over The Counter - Residents in Argentina - Non-financial sector

2,911,371

Repo transactions

Intermediation - own account

Local government securities

With delivery of underlying asset

Other countries of local

2,544,289

Options

Intermediation - own account

Other

With delivery of underlying asset

Over The Counter - Residents in Argentina - Non-financial sector

416,146

(*) Related to the valuation of the underlying traded, exposed in absolute value.

Delfín Jorge Ezequiel Carballo

Chairperson

- 114 -

EXHIBIT Q

BREAKDOWN OF STATEMENT OF INCOME

AS OF SEPTEMBER 30, 2019

(Translation of the financial statements originally issued in Spanish - See Note 37)

(Figures stated in thousands of pesos)

	Net financial Income/ (Loss)
	Mandatory measurement
Items	Quarter ended 09/30/2019			Accumulated from beginning of period up to 09/30/2019
For measurement of financial assets at fair value through profit or loss
Loss from government securities		(198,281	)		(105,138	)
Gain from private securities		110,313			351,175
Gain from derivative financial instruments
Forward transactions		735,002			1,024,116
(Loss)/Gain from other financial assets		(860	)		13,349
(Loss)/Gain from equity instruments at fair value through profit or loss		(275	)		1,403,587
Gain/(Loss) from sales or low of financial assets at fair value		90,201			(98,198	)
Total		736,100			2,588,891

Delfín Jorge Ezequiel Carballo

Chairperson

- 115 -

EXHIBIT Q

(Continued)

BREAKDOWN OF STATEMENT OF INCOME

AS OF SEPTEMBER 30, 2019

(Translation of the financial statements originally issued in Spanish - See Note 37)

(Figures stated in thousands of pesos)

	Net financial income/ (Loss)
Interest and adjustment for the application of the effective interest rate of financial assets measured at amortized cost	Quarter ended 09/30/2019			Accumulated from beginning of period up to 09/30/2019
Interest income
For cash and bank deposits		85,983			151,800
For government securities		1,880,737			2,926,780
For debt securities		378,928			378,928
For loans and other financing
Financial sector		374,727			1,240,294
Non financial private sector
Overdrafts		3,344,749			6,941,661
Documents		956,112			3,232,004
Mortgage loans		1,370,071			4,138,564
Pledge loans		126,217			371,683
Personal loans		5,040,855			14,704,162
Credit cards		2,386,998			7,240,324
Financial leases		35,485			117,670
Other		1,010,756			3,143,606
For repo transactions
Central Bank of Argentina					9,381
Other financial institutions		7,511			1,954,852
Total		16,999,129			46,551,709
Interest expenses
For deposits
Non financial private sector
Checking accounts		(104,630	)		(274,633	)
Saving accounts		(111,046	)		(355,281	)
Time deposits and investments accounts		(13,030,364	)		(34,782,023	)
For Financing received from Central Bank of Argentina and other financial institutions		(62,160	)		(232,821	)
For repo transactions
Other financial institutions		(53,300	)		(231,715	)
For other financial liabilities		(35,171	)		(92,447	)
Issued corporate bonds		(787,429	)		(1,709,311	)
For subordinated corporate bonds		(385,656	)		(976,856	)
Total		(14,569,756	)		(38,655,087	)

Delfín Jorge Ezequiel Carballo

Chairperson

- 116 -

EXHIBIT Q

(Continued)

BREAKDOWN OF STATEMENT OF INCOME

AS OF SEPTEMBER 30, 2019

(Translation of the financial statements originally issued in Spanish - See Note 37)

(Figures stated in thousands of pesos)

	Income for the period				Other comprehensive income
Interest and adjustment for the application of the effective interest rate of financial assets measured at fair value through other comprehensive income	Quarter ended 09/30/2019		Accumulated from beginning of period up to 09/30/2019		Quarter ended 09/30/2019		Accumulated from beginning of period up to 09/30/2019
From debt government securities		16,831,909		39,536,575		315,900		255,041
Total		16,831,909		39,536,575		315,900		255,041

	Income for the period
Commissions income	Quarter ended 09/30/2019		Accumulated from beginning of period up to 09/30/2019
Commissions related to obligations		2,174,497		6,087,211
Commissions related to credits		46,936		110,288
Commissions related to loans commitments and financial guarantees		2,139		4,580
Commissions related to securities value		25,248		72,807
Commissions to credit cards		1,268,808		3,314,374
Commissions to insurance		204,248		606,439
Commissions related to trading and foreign exchange transactions		115,331		283,649
Total		3,837,207		10,479,348

	Loss for the period
Commissions expenses	Quarter ended 09/30/2019			Accumulated from beginning of period up to 09/30/2019
Commissions related to trading and foreign exchange transactions		(64,778	)		(92,975	)
Other
Commissions paid ATM exchange		(149,527	)		(357,722	)
Checkbooks commissions and compensating cameras		(71,207	)		(189,558	)
Commissions Credit cards and foreign trade		(53,474	)		(146,060	)
Total		(338,986	)		(786,315	)

Delfín Jorge Ezequiel Carballo

Chairperson

- 117 -

EXHIBIT Q

BREAKDOWN OF STATEMENT OF INCOME

AS OF SEPTEMBER 30, 2018

(Translation of the financial statements originally issued in Spanish - See Note 37)

(Figures stated in thousands of pesos)

	Net financial Income/ (Loss)
	Mandatory measurement
Item	Quarter ended 09/30/2018			Accumulated from beginning of period up to 09/30/2018
For measurement of financial assets at fair value through profit or loss
Gain from government securities		162,850			247,813
Gain from private securities		12,158			34,493
Gain from derivative financial instruments
Forwards transactions		234,461			234,461
Gain from other financial assets		26,254			54,584
(Loss)/Gain from equity instruments at fair value through profit or loss		(2	)		6,113
Loss from sales or low of financial assets at fair value		(66,678	)		(106,294	)
Gain from derivative financial instruments
Forward transactions		5,970
Total		375,013			471,170

Delfín Jorge Ezequiel Carballo

Chairperson

- 118 -

EXHIBIT Q

(continued)

BREAKDOWN OF STATEMENT OF INCOME

AS OF SEPTEMBER 30, 2018

(Translation of the financial statements originally issued in Spanish - See Note 37)

(Figures stated in thousands of pesos)

Interest and adjustment for the application of the effective interest rate of financial assets measured at amortized cost	Net financial income/ (Loss)
	Quarter ended 09/30/2018			Accumulated from beginning of period up to 09/30/2018
Interest income
For cash and bank deposits		4,684			9,636
for debt securities		69,868			169,889
for government securities		343,139			373,266
For loans and other financing
Financial sector		478,911			1,035,349
Non Financial sector
Overdrafts		1,441,247			3,171,071
Documents		847,214			2,214,697
Mortgage loans		1,024,300			2,288,487
Pledge loans		138,410			421,969
Personal loans		4,488,940			12,382,887
Credit cards		1,646,938			4,316,412
Financial leases		40,158			108,700
Other		1,200,939			2,999,006
For repo transactions
Central Bank of Argentina					21,248
Other financial institutions		7,610			65,854
Total		11,732,358			29,578,471
Interest expenses
For deposits
Non financial private sector
Checking accounts		(142,137	)		(142,137	)
Saving accounts		(88,844	)		(202,811	)
Time deposits and investments accounts		(4,948,561	)		(11,147,564	)
For Financing received from Central Bank of Argentina and other financial institutions		(44,911	)		(78,009	)
For repo transactions
Other financial institutions		(65,702	)		(121,014	)
For other financial liabilities		(18,433	)		(23,764	)
Issued corporate bonds		(405,786	)		(1,028,860	)
For subordinated corporate bonds		(252,059	)		(565,465	)
Total		(5,966,433	)		(13,309,624	)

- 119 -

EXHIBIT Q

(Continued)

BREAKDOWN OF STATEMENT OF INCOME

AS OF SEPTEMBER 30, 2018

(Translation of the financial statements originally issued in Spanish - See Note 37)

(Figures stated in thousands of pesos)

Interest and adjustment for the application of the effective interest rate of financial assets measured at fair value through other comprehensive income	Income for the period							Other comprehensive income
	Quarter ended 09/30/2018		Accumulated from beginning of period up to 09/30/2018		Quarter ended 09/30/2018			Accumulated from beginning of period up to 09/30/2018
From debt government securities		3,938,506		9,062,571		(181,724	)		(270,294	)
Total		3,938,506		9,062,571		(181,724	)		(270,294	)

Commissions income	Income for the period
Commissions income	Quarter ended 09/30/2018		Accumulated from beginning of period up to 09/30/2018
Commissions related to obligations		1,796,768		4,826,211
Commissions related to credits		20,903		61,622
Commissions related to loans commitments and financial guarantees		468		921
Commissions related to securities value		19,884		66,982
Commissions to credit cards		812,070		2,341,010
Commissions to insurance		178,226		519,961
Commissions related to trading and foreign exchange transactions		69,716		161,894
Total		2,898,035		7,978,601

Commissions expenses	Loss for the period
Commissions expenses	Quarter ended 09/30/2018		Accumulated from beginning of period up to 09/30/2018
Commissions related to transactions to debt securities			(208	)
Commissions related to trading and foreign exchange transactions	(14,614	)	(31,476	)
Other
Commissions paid ATM exchange	(77,625	)	(198,065	)
Checkbooks commissions and compensating cameras	(45,714	)	(124,282	)
Commissions Credit cards and foreign trade	(39,404	)	(110,880	)
Total	(177,357	)	(464,911	)

- 120 -

							EXHIBIT R
VALUE ADJUSTMENT FOR CREDIT LOSSES - ALLOWANCES FOR UNCOLLECTIBILITY RISK
AS OF SEPTEMBER 30, 2019
(Translation of the financial statements originally issued in Spanish - See Note 37)
(Figures stated in thousands of pesos)

				Decreases
Item	Amounts at beginning of the fiscal year		Increases		Reversals	Charge off		09/30/2019
Other financial assets (Note 10)		4,931	1,478,720				16	1,483,635
Loans and other financing		3,875,164	3,007,370		95,909		2,282,502	4,504,123
Other financial institutions		52,121	2,894		32,065			22,950
To the non-financial private sector and foreign residents
Overdrafts		278,910	245,199		2,683		79,691	441,735
Documents		352,955	82,246		22,843		81,475	330,883
Mortgage loans		262,750	117,146		1,165		32,293	346,438
Pledge loans		75,762	29,439		972		1,538	102,691
Personal loans		1,497,309	1,183,721		52		989,580	1,691,398
Credit cards		772,847	592,018		457		457,545	906,863
Financial leases		5,567	1,340		1,037			5,870
Other		576,943	753,367		34,635		640,380	655,295
Other debt securities			24,761					24,761
Total allowances		3,880,095	4,510,851		95,909		2,282,518	6,012,519

VALUE ADJUSTMENT FOR CREDIT LOSSES - ALLOWANCES FOR UNCOLLECTIBILITY RISK

AS OF DECEMBER 31, 2018

(Translation of the financial statements originally issued in Spanish - See Note 37)

(Figures stated in thousands of pesos)

				Decreases
Item	Amounts at beginning of the fiscal year		Increases		Reversals	Charge off		09/30/2018
Other financial assets		4,916	1,850				1,835	4,931
Loans and other financing		2,470,303	2,867,749		37,684		1,425,204	3,875,164
Other financial institutions		31,251	25,571		4,701			52,121
To the non-financial private sector and foreign residents
Overdrafts		138,311	198,938		6,822		51,517	278,910
Documents		200,750	193,380		807		40,368	352,955
Mortgage loans		146,296	148,407		13,466		18,487	262,750
Pledge loans		73,070	28,738		3,681		22,365	75,762
Personal loans		1,055,897	1,284,557		267		842,878	1,497,309
Credit cards		557,682	565,559		905		349,489	772,847
Financial leases		6,487	268		1,188		0	5,567
Other		260,559	422,331		5,847		100,100	576,943
Total allowances		2,475,219	2,869,599		37,684		1,427,039	3,880,095

- 121 -

REVIEW REPORT ON CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

To the Directors of

BANCO MACRO S.A.

CUIT (Argentine tax identification number): 30-50001008-4

Registered office: Avenida Eduardo Madero 1182

Buenos Aires City

Report on the financial statements

Introduction

We have reviewed the accompanying condensed consolidated interim financial statements of BANCO MACRO S.A. and its subsidiaries (“the Bank”), which comprise: (a) the consolidated statement of financial position as of September 30, 2019, (b) the consolidated statements of income and other comprehensive income for the three and nine-month periods ended at September 30, 2019, and the changes in shareholders’ equity and cash flows for the nine-month period then ended, and (c) explanatory notes and other supplementary information.

Responsibility of the Bank’s Board of Directors and Management in connection with the financial statements

The Bank’s Board of Directors and Management are responsible for the preparation and presentation of the financial statements mentioned in paragraph 1. in accordance with the accounting framework established by the Central Bank of Argentina (“BCRA”), which, as indicated in note 3. to the financial statements mentioned in paragraph 1., is based on International Financial Reporting Standards (“IFRS”), and in particular for the condensed interim financial statements on the International Accounting Standard (“IAS”) 34 "Interim Financial Reporting", as those standards were issued by the International Accounting Standards Board ("IASB") and adopted by the Argentine Federation of Professional Councils in Economic Sciences (“FACPCE” for its Spanish acronym), only subject to the exceptions stated in (i) point 5.5. "Impairment" of IFRS 9 "Financial instruments", and (ii) International Accounting Standards (“IAS”) 29 “Financial Reporting in Hyperinflationary Economies”, which were temporarily excluded by the BCRA from the accounting framework applicable to financial institutions. The Bank’s Board of Directors and Management are also responsible for the internal control they may deem necessary to allow the interim financial statements to be prepared free of material misstatements, whether due to errors or irregularities.

Auditor’s responsibility

Our responsibility is to express a conclusion on the financial statements mentioned in paragraph 1. based on our review, which was performed in accordance with the standards established by FACPCE Technical Resolution No. 37 and with the “Minimum external auditing standards” issued by the BCRA, applicable to the review of interim financial statements, and in compliance with the ethical requirements relevant to the audit of the Bank’s annual financial statements. A review of interim financial statements consists of making inquiries, mainly to the persons in charge of accounting and financial matters, as well as applying analytical procedures and other review procedures. A review is substantially less in scope than an audit of financial statements; therefore, we cannot obtain reasonable assurance that we will become aware of all the material issues that may arise in an audit. Therefore, we do not express an audit opinion.

Conclusion

Based on our review, we have not become aware of anything that may lead us to believe that the financial statements mentioned in paragraph 1. have not been prepared, in all material respects, in accordance with the accounting framework established by the BCRA mentioned in paragraph 2.

Emphasis on certain aspects disclosed in the financial statements and other issues

We would like to draw attention to the information contained in the following notes to the consolidated financial statements mentioned in paragraph 1.:

(a) Note 3. “Basis for the preparation of these financial statements and applicable accounting standards”, section “Applicable Accounting Standards”, in which the Bank quantifies the effect that the application of section 5.5 “Impairment” of IFRS 9 “Financial instruments” would have on the financial statements mentioned in paragraph 1., which was temporarily excluded by the BCRA from the accounting framework applicable to financial entities. This issue does not change the conclusion stated in paragraph 4., but it should be taken into account by the users of IFRS for interpreting the financial statements mentioned in paragraph 1.

(b) Note 3. “Basis for the preparation of these financial statements and applicable accounting standards”, section “Measuring unit”, which (a) explains that although as of September 30, 2019, the conditions mentioned in IAS 29 for the inflation adjustment of the financial statements into measuring unit current are met, BCRA Communiqué "A" 6651 does not allow such inflation adjustment temporarily; (b) describes the main impacts that would be derived from applying IAS 29, together with a quantification of certain global effects on the attached financial statements, and (c) warns that the nonrecognition of changes occurred in the general purchasing power may distort the accounting information and should be taken into account in the interpretation of the information included by the Bank in the accompanying financial statements over financial position, results of operations and cash flows. This issue does not modify the conclusion mentioned in paragraph 4., but we expressly state that although the financial statements mentioned in paragraph 1. were prepared pursuant to the accounting information framework established by the BCRA, the practices within this information framework concerning the measuring unit do not allow to make a presentation according to professional accounting standards.

As further explained in Note 39. to the consolidated financial statements mentioned in paragraph 1., certain accounting practices used by the Bank to prepare the accompanying financial statements conform with the accounting framework established by the BCRA but may not conform with the accounting principles generally accepted in other countries.

Other matters

We also issued a separate report on the condensed separate interim financial statements of BANCO MACRO S.A. as of the same date and for the same period indicated in paragraph 1.

II.

Report on other legal and regulatory requirements

In compliance with current legal requirements, we further report that:

(a)

The financial statements mentioned in paragraph 1., as mentioned in note 3. thereto, are in process of being transcribed into the Books of Accounts of BANCO MACRO S.A. and, based on our review, we have not become aware of anything that may lead us to believe that these financial statements have not been prepared, in all material respects, in conformity with the applicable Argentine Business Associations Law provisions and Argentine Securities Commission (“CNV”) regulations.

(b)

The condensed separate interim financial statements of BANCO MACRO S.A. as of September 30, 2019, arise from the accounting books kept, in all formal respects, pursuant to current legal requirements.

(c)

As of September 30, 2019, the liabilities accrued from employee and employer contributions to the Integrated Pension Fund System, as recorded in the Bank’s books, amounted to Ps. 160,586,622, none of which was due and payable as of that date.

Buenos Aires City,

November 8, 2019

PISTRELLI, HENRY MARTIN Y ASOCIADOS S.R.L.

C.P.C.E.C.A.B.A. Vol. 1 – Fo. 13

CARLOS M. SZPUNAR

Partner

Certified Public Accountant (U.B.A.)

C.P.C.E.C.A.B.A. Vol. 192 – Fo. 110

REVIEW REPORT ON CONDENSED SEPARATE INTERIM FINANCIAL STATEMENTS

To the Directors of

BANCO MACRO S.A.

CUIT (Argentine tax identification number): 30-50001008-4

Registered office: Avenida Eduardo Madero 1182

Buenos Aires City

III.

Report on the financial statements

Introduction

We have reviewed the accompanying condensed separate interim financial statements of BANCO MACRO S.A. (“the Bank”), which comprise: (a) the separate statement of financial position as of September 30, 2019, (b) the separate statements of income and other comprehensive income for the three and nine-month periods ended at September 30, 2019, and the changes in shareholders’ equity and cash flows for the nine-month period then ended, and (c) explanatory notes and other supplementary information.

Responsibility of the Bank’s Board of Directors and Management in connection with the financial statements

Auditor’s responsibility

Conclusion

Emphasis on certain aspects disclosed in the financial statements and other issues

10.

We would like to draw attention to the information contained in the following notes to the separate financial statements mentioned in paragraph 1.:

(c) Note 3. “Basis for the preparation of these financial statements and applicable accounting standards”, in which the Bank quantifies the effect that the application of section 5.5 "Impairment” of IFRS 9 "Financial instruments" would have on the financial statements mentioned in paragraph 1., which was temporarily excluded by the BCRA from the accounting framework applicable to financial entities. This issue does not change the conclusion stated in paragraph 4., but it should be taken into account by the users of IFRS for interpreting the financial statements mentioned in paragraph 1.

(d) Note 3. “Basis for the preparation of these financial statements and applicable accounting standards”, section “Measuring unit”, which (a) explains that although as of September 30, 2019, the conditions mentioned in IAS 29 for the inflation adjustment of the financial statements into measuring unit current are met, BCRA Communiqué "A" 6651 does not allow such inflation adjustment temporarily; (b) describes the main impacts that would be derived from applying IAS 29, together with a quantification of certain global effects on the attached financial statements, and (c) warns that the nonrecognition of changes occurred in the general purchasing power may distort the accounting information and should be taken into account in the interpretation of the information included by the Bank in the accompanying financial statements over financial position, results of operations and cash flows. This issue does not modify the conclusion mentioned in paragraph 4., but we expressly state that although the financial statements mentioned in paragraph 1. were prepared pursuant to the accounting information framework established by the BCRA, the practices within this information framework concerning the measuring unit do not allow to make a presentation according to professional accounting standards.

As further explained in note 37. to the separate financial statements mentioned in paragraph 1., certain accounting practices used by the Bank to prepare the accompanying financial statements conform with the accounting framework established by the BCRA but may not conform with the accounting principles generally accepted in other countries.

Other matters

We also issued a separate report on the condensed consolidated interim financial statements of BANCO MACRO S.A. and its subsidiaries as of the same date and for the same period indicated in paragraph 1.

IV.

Report on other legal and regulatory requirements

8. In compliance with current legal requirements, we further report that:

(a)

Based on our review, we have not become aware of anything that may lead us to believe that the financial statements mentioned in paragraph 1. have not been prepared, in all material respects, in conformity with the applicable Argentine Business Associations Law provisions and Argentine Securities Commission (“CNV”) regulations.

(b)

The financial statements mentioned in paragraph 1. as mentioned in note 3. thereto, are in process of being transcribed into the Books of Accounts of BANCO MACRO S.A. and arise from the accounting books kept, in all formal respects, pursuant to current legal requirements.

(c)

(d)

As of September 30, 2019, as stated in note 27. to the financial statements mentioned in paragraph 1., the Bank carries shareholders’ equity and a statutory guarantee account to eligible assets that exceed the minimum amounts required by relevant CNV regulations for these items.

Buenos Aires City,

November 8, 2019

PISTRELLI, HENRY MARTIN Y ASOCIADOS S.R.L.

C.P.C.E.C.A.B.A. Vol. 1 – Fo. 13

CARLOS M. SZPUNAR

Partner

Certified Public Accountant (U.B.A.)

C.P.C.E.C.A.B.A. Vol. 192 – Fo. 110

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereto duly authorized.

Date: January 27, 2020

	MACRO BANK INC.


	By:	/s/ Jorge Francisco Scarinci
	Name:	Jorge Francisco Scarinci
	Title:	Chief Financial Officer

Banco Macro (BMA) 6-KCurrent report (foreign)