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
June 8, 2020
Commission File Number: 001-32827
MACRO BANK INC.
(Translation of registrant’s name into English)
Avenida Eduardo Madero 1182
Ciudad Autónoma de Buenos Aires C1106 ACY
Tel: 54 11 5222 6500
(Address of registrant’s principal executive offices)
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.
| Form 20-F | x | Form 40-F | ¨ |
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):
| Yes | ¨ | No | x |
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):
| Yes | ¨ | No | x |
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Banco Macro Announces Results for the First Quarter of 2020
Buenos Aires, Argentina, June 8, 2020 – Banco Macro S.A. (NYSE: BMA; BYMA: BMA) (“Banco Macro” or “BMA” or the “Bank”) announced today its results for the first quarter ended March 31, 2020 (“1Q20”). All figures are in Argentine pesos (Ps.) and have been restated in terms of the measuring unit current at the end of the reporting period. As of 1Q20, the Bank began reporting results applying Hyperinflation Accounting, in accordance with IFRS IAS 29 as established by the Central Bank. For ease of comparison, figures of previous quarters of 2019 have been restated applying IAS 29 to reflect the accumulated effect of the inflation adjustment for each period through March 31, 2020.
Summary
• The Bank’s net income totaled Ps.7.1 billion in 1Q20. This result was 15% higher than the result posted in 4Q19 and 80% higher than in 1Q19. In 1Q20, the accumulated annualized return on average equity (“ROAE”) and the accumulated annualized return on average assets (“ROAA”) were 27.3% and 4.9%, respectively.
• In 1Q20, Banco Macro’s net monetary position resulted in a Ps.295 million gain, improving from the Ps.5.1 billion loss posted in 4Q19 and lower than the Ps.3.2 billion gain registered in 1Q19.
• In 1Q20, Banco Macro’s financing to the private sector decreased 4% or Ps.9.2 billion quarter over quarter (“QoQ”) totaling Ps.219.8 billion and 15% or Ps.38.7 billion year over year (“YoY”). In the quarter commercial loans stand out, among which Documents and Others stand out; with a 8% and a 14% increase respectively QoQ.
• In 1Q20, Banco Macro’s total deposits increased 10% or Ps.27.9 billion QoQ, totaling Ps.311.3 billion and representing 80% of the Bank’s total liabilities. Private sector deposits increased 7% or Ps.19.6 billion QoQ.
• Banco Macro continued showing a strong solvency ratio, with an excess capital of Ps.96.4 billion, 32% regulatory capital ratio – Basel III and 25.4% Tier 1 Ratio. In addition, the Bank’s liquid assets remained at an adequate level, reaching 66% of its total deposits in 1Q20.
• As of 1Q20, the efficiency ratio reached 39.8%, deteriorating from the 35.5% posted in 4Q19.
• In 1Q20, the Bank’s non-performing to total financing ratio was 1.36% and the coverage ratio reached 173.49%.
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1Q20 Earnings Release Conference Call
Tuesday, June 9, 2020
Time: 11:00 a.m. Eastern Time | 1:00 p.m. Buenos Aires Time
| IR Contacts in Buenos Aires:
Jorge Scarinci Chief Financial Officer
Nicolás A. Torres Investor Relations
Phone: (54 11) 5222 6682 E-mail: investorelations@macro.com.ar
Visit our website at:
| |||
To participate, please dial: Argentina Toll Free: (011) 3984 5677 Participants Dial In (Toll Free): +1 (844) 450 3847 Participants International Dial In: +1 (412) 317 6370 Conference ID: Banco Macro Webcast:click here | Webcast Replay:click here
Available from 02/20/2020 through 03/05/2020 | |||
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Disclaimer
This press release includes forward-looking statements. We have based these forward-looking statements largely on our current beliefs, expectations and projections about future events and financial trends affecting our business. Many important factors could cause our actual results to differ substantially from those anticipated in our forward-looking statements, including, among other things: inflation; changes in interest rates and the cost of deposits; government regulation; adverse legal or regulatory disputes or proceedings; credit and other risks of lending, such as increases in defaults by borrowers; fluctuations and declines in the value of Argentine public debt; competition in banking and financial services; deterioration in regional and national business and economic conditions in Argentina; and fluctuations in the exchange rate of the peso.
The words “believe,” “may,” “will,” “aim,” “estimate,” “continue,” “anticipate,” “intend,” “expect” and similar words are intended to identify forward-looking statements. Forward-looking statements include information concerning our possible or assumed future results of operations, business strategies, financing plans, competitive position, industry environment, potential growth opportunities, the effects of future regulation and the effects of competition. Forward-looking statements speak only as of the date they were made, and we undertake no obligation to update publicly or to revise any forward-looking statements after we distribute this press release because of new information, future events or other factors. In light of the risks and uncertainties described above, the forward-looking events and circumstances discussed in this press release might not occur and are not guarantees of future performance.
This report is a summary analysis of Banco Macro's financial condition and results of operations as of and for the period indicated. For a correct interpretation, this report must be read in conjunction with all other material periodically filed with the Comisión Nacional de Valores (www.cnv.gob.ar), the Securities and Exchange Commission (www.sec.gov), Bolsas y mercados Argentinos (www.byma.com.ar) and the New York Stock Exchange (www.nyse.com). In addition, the Central Bank (www.bcra.gov.ar) may publish information related to Banco Macro as of a date subsequent to the last date for which the Bank has published information.
Readers of this report must note that this is a translation made from an original version written and expressed in Spanish. Consequently, any matters of interpretation should be referred to the original version in Spanish.
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This Earnings Release has been prepared in accordance with the accounting framework established by the Central Bank of Argentina (“BCRA”), based on International Financial Reporting Standards (“I.F.R.S.”) and the resolutions adopted by the International Accouting Standards Board (“I.A.S.B”) and by the Federación Argentina de Consejos Profesionales de Ciencias Económicas (“F.A.C.P.E.”). As of January 2020 the Bank started reporting with the application of (i) Expected losses of IFRS 9 “Financial Instruments” and (ii) IAS 29 “Financial Reporting in Hyperinflationary Economies”. Data and figures shown in this Earnings Release may differ from the ones shown in the 20-F annual report.
Results
Earnings per outstanding share were Ps.11.07 in 1Q20, 15% higher than 4Q19 and 80% higher than the result posted a year ago.
| EARNINGS PER SHARE | MACRO Consolidated | Change | ||||||||||||||||||
| In MILLION $ (Measuring Unit Current at EOP) | 1Q19 | 4Q19 | 1Q20 | QoQ | YoY | |||||||||||||||
| Net income -Parent Company- (M $) | 3,928 | 6,132 | 7,074 | 15 | % | 80 | % | |||||||||||||
| Average # of shares outstanding (M) | 639 | 639 | 639 | 0 | % | 0 | % | |||||||||||||
| Average #of treasury stocks (shares repurchased) | 45 | - | - | - | -100 | % | ||||||||||||||
| Book value per avg. Outstanding share ($) | 153 | 177 | 186 | 5 | % | 22 | % | |||||||||||||
| Shares Outstanding (M) | 639 | 639 | 639 | 0 | % | 0 | % | |||||||||||||
| Earnings per avg. outstanding share ($) | 6.15 | 9.60 | 11.07 | 15 | % | 80 | % | |||||||||||||
| EOP FX (Pesos per USD) | 43.3533 | 59.8950 | 64.4700 | 8 | % | 49 | % | |||||||||||||
| Book value per avg. issued ADS (USD) | 35.29 | 29.55 | 28.85 | -2 | % | -18 | % | |||||||||||||
| Earnings per avg. outstanding ADS (USD) | 1.42 | 1.60 | 1.72 | 7 | % | 21 | % | |||||||||||||
Banco Macro’s 1Q20 net income of Ps.7.1 billion was 15% or Ps.941 million higher than the previous quarter and 80% or Ps.3.1 billion higher YoY. This result represented an accumulated ROAE and ROAA of 27.3% and 4.9% respectively.
Net operating income (before G&A and personnel expenses) was Ps.23.3 billion in 1Q20, decreasing 25% or Ps.7.6 billion compared to 4Q19 and increased 16% or Ps.3.1 billion compared to the previous year.
Operating income (after G&A and personnel expenses) was Ps.10.7 billion in 1Q20, 31% or Ps.4.8 billion lower than in 4Q19 and 68% or Ps.4.3 billion higher than a year ago.
It is important to emphasize that this result was obtained with a leverage of 4.3x assets to equity ratio.
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| INCOME STATEMENT | MACRO Consolidated | Change | ||||||||||||||||||
| In MILLION $ (Measuring Unit Current at EOP) | 1Q19 | 4Q19 | 1Q20 | QoQ | YoY | |||||||||||||||
| Net Interest Income | 19,961 | 25,527 | 21,302 | -17 | % | 7 | % | |||||||||||||
| Net fee income | 5,130 | 4,616 | 4,431 | -4 | % | -14 | % | |||||||||||||
| Subtotal (Net Interest Income + Net Fee Income) | 25,091 | 30,143 | 25,733 | -15 | % | 3 | % | |||||||||||||
| Net Income from financial instruments at fair value through P&L | -8,103 | -279 | -4,093 | 1367 | % | -49 | % | |||||||||||||
| Income from assets at amortized cost | -27 | 60 | 853 | 1322 | % | - | ||||||||||||||
| Differences in quoted prices of gold and foreign currency | -44 | 1,472 | 532 | -64 | % | - | ||||||||||||||
| Other operating income | 4,798 | 1,011 | 1,099 | 9 | % | -77 | % | |||||||||||||
| Provision for loan losses | 1,577 | 1,565 | 861 | -45 | % | -45 | % | |||||||||||||
| Net Operating Income | 20,138 | 30,842 | 23,263 | -25 | % | 16 | % | |||||||||||||
| Employee benefits | 4,852 | 5,588 | 4,726 | -15 | % | -3 | % | |||||||||||||
| Administrative expenses | 3,238 | 3,693 | 2,674 | -28 | % | -17 | % | |||||||||||||
| Depreciation and impairment of assets | 770 | 838 | 836 | 0 | % | 9 | % | |||||||||||||
| Other operating expenses | 4,916 | 5,182 | 4,325 | -17 | % | -12 | % | |||||||||||||
| Operating Income | 6,362 | 15,541 | 10,702 | -31 | % | 68 | % | |||||||||||||
| Result from associates & joint ventures | 41 | 165 | 21 | -87 | % | -49 | % | |||||||||||||
| Result from net monetary postion | 3,200 | -5,112 | 295 | - | -91 | % | ||||||||||||||
| Result before taxes from continuing operations | 9,603 | 10,594 | 11,018 | 4 | % | 15 | % | |||||||||||||
| Income tax | 5,675 | 4,461 | 3,944 | -12 | % | -31 | % | |||||||||||||
| Net income from continuing operations | 3,928 | 6,133 | 7,074 | 15 | % | 80 | % | |||||||||||||
| Net Income of the period | 3,928 | 6,133 | 7,074 | 15 | % | 80 | % | |||||||||||||
| Net income of the period attributable to parent company | 3,928 | 6,132 | 7,074 | 15 | % | 80 | % | |||||||||||||
| Net income of the period attributable to minority interest | 0 | 1 | 0 | -100 | % | - | ||||||||||||||
The Bank’s 1Q20 net interest income totaled Ps.21.3 billion, 17% or Ps.4.2 billion lower than in 4Q19 and 7% or Ps.1.3 billion higher YoY.
In 1Q20 interest income totaled Ps.30.9 billion, 16% or Ps.6 billion lower than in 4Q19 (due to lower income from interest on loans) and 18% or Ps.6.8 billion lower than in 1Q19.
Income from interest on loans and other financing totaled Ps.19.5 billion, 22% or Ps.5.4 billion lower compared with the previous quarter, due to an 8% decrease in the loan portfolio and a 600 b.p. decrease in the average lending rate. On a yearly basis Income from interest on loans decreased 14% or Ps.3.1 billion.
In 1Q20 income from government and private securities decreased 1% or Ps148 million QoQ (due to lower income from Private securities) and decreased 25% or Ps.3.6 billion compared with the same period of last year. This result is explained 86% by income from government and private securities through other comprehensive income (Central Bank Notes) and the remaining 14% is explained by income from government and private securities at amortized cost.
In 1Q20 income from Repos totaled Ps.364 million, Ps.416 million lower than the previous quarter and Ps.136 million lower than a year ago.
In 1Q20 Differences in foreign currency totaled a Ps.532 million gain, due to the 8% argentine peso depreciation against the US dollar and the Bank’s long spot dollar position during the quarter and FX trading results (Ps.49 million). Income from differences in foreign currency decreased 96% or Ps.1.1 billion due to lower results from trading due to currency controls and regulations. It should be noted that if income from investment in derivative financing instruments is added then differences in quoted prices of gold and foreign currency in 1Q20 resulted in a Ps.568 million gain.
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| DIFFERENCES IN QUOTED PRICES OF GOLD AND FOREIGN CURRENCY | MACRO Consolidated | Variation | ||||||||||||||||||
| In MILLION $ (Measuring Unit Current at EOP) | 1Q19 | 4Q19 | 1Q20 | QoQ | YoY | |||||||||||||||
| (1) Differences in quoted prices of gold and foreign currency | -44 | 1,472 | 532 | -64 | % | - | ||||||||||||||
| Translation of FX assets and liabilities to Pesos | -713 | 304 | 484 | 59 | % | - | ||||||||||||||
| Income from foreign currency exchange | 669 | 1,168 | 49 | -96 | % | -93 | % | |||||||||||||
| (2) Net Income from financial assets and liabilities at fair value through P&L | 453 | 257 | 36 | -86 | % | -92 | % | |||||||||||||
| Income from investment in derivative financing instruments | 453 | 257 | 36 | -86 | % | -92 | % | |||||||||||||
| (1) +(2) Total Result from Differences in quoted prices of gold and foreign currency | 409 | 1,729 | 568 | -67 | % | 39 | % | |||||||||||||
| INTEREST INCOME | MACRO Consolidated | Change | ||||||||||||||||||
| In MILLION $ (Measuring Unit Current at EOP) | 1Q19 | 4Q19 | 1Q20 | QoQ | YoY | |||||||||||||||
| Interest on Cash and due from Banks | 49 | 74 | 61 | -18 | % | 24 | % | |||||||||||||
| Interest from government securities | 14,643 | 10,101 | 10,446 | 3 | % | -29 | % | |||||||||||||
| Interest from private securities | 2 | 1,077 | 584 | -46 | % | 29100 | % | |||||||||||||
| Interest on loans and other financing | ||||||||||||||||||||
| To the financial sector | 771 | 462 | 252 | -45 | % | -67 | % | |||||||||||||
| To the public non financial sector | 307 | 306 | 555 | 81 | % | 81 | % | |||||||||||||
| Interest on overdrafts | 2,915 | 7,806 | 4,062 | -48 | % | 39 | % | |||||||||||||
| Interest on documents | 1,864 | 1,410 | 1,273 | -10 | % | -32 | % | |||||||||||||
| Interest on mortgages loans | 2,028 | 2,507 | 1,797 | -28 | % | -11 | % | |||||||||||||
| Interest on pledged loans | 199 | 141 | 107 | -24 | % | -46 | % | |||||||||||||
| Interest on personal loans | 8,952 | 7,192 | 6,658 | -7 | % | -26 | % | |||||||||||||
| Interest on credit cards loans | 3,981 | 3,236 | 2,736 | -15 | % | -31 | % | |||||||||||||
| Interest on financial leases | 68 | 32 | 22 | -31 | % | -68 | % | |||||||||||||
| Interest on other loans | 1,438 | 1,768 | 1,993 | 13 | % | 39 | % | |||||||||||||
| Interest on Repos | ||||||||||||||||||||
| From the BCRA | 15 | 423 | 322 | -24 | % | 2047 | % | |||||||||||||
| Other financial institutions | 485 | 357 | 42 | -88 | % | -91 | % | |||||||||||||
| Total Interest income | 37,717 | 36,892 | 30,910 | -16 | % | -18 | % | |||||||||||||
| Income from Interest on loans | 22,523 | 24,860 | 19,455 | -22 | % | -14 | % | |||||||||||||
The Bank’s 1Q20 interest expense totaled Ps.9.6 billion, decreasing 15% (Ps.1.8 billion) compared to the previous quarter and 46% (Ps.8.1 billion) compared to 1Q19.
In 1Q20, interest on deposits represented 91% of the Bank’s total interest expense, decreasing 17% or Ps.1.8 billion QoQ, due to a 400 b.p. reduction in the average rate of time deposits .This decrease can be traced to a 1,190 b.p. decline in the BADLAR rate as a consequence of the Leliq rate decline from around 55% at the beginning of the quarter, to 38% by the end of March and a 5% increase in the average volume of time deposit that did not offset the decline in interest rates. On a yearly basis, interest on deposits decreased 47% or Ps.7.6 billion.
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| INTEREST EXPENSE | MACRO Consolidated | Change | ||||||||||||||||||
| In MILLION $ (Measuring Unit Current at EOP) | 1Q19 | 4Q19 | 1Q20 | QoQ | YoY | |||||||||||||||
| Deposits | ||||||||||||||||||||
| Interest on checking accounts | 188 | 30 | 120 | 300 | % | -36 | % | |||||||||||||
| Interest on saving accounts | 150 | 203 | 146 | -28 | % | -3 | % | |||||||||||||
| Interest on time deposits | 16,062 | 10,322 | 8,491 | -18 | % | -47 | % | |||||||||||||
| Interest on other financing from BCRA and financial inst. | 67 | 22 | 22 | 0 | % | -67 | % | |||||||||||||
| Repos | ||||||||||||||||||||
| Other financial institutions | 108 | 31 | 66 | 113 | % | -39 | % | |||||||||||||
| Interest on corporate bonds | 700 | 218 | 285 | 31 | % | -59 | % | |||||||||||||
| Interest on subordinated bonds | 433 | 482 | 458 | -5 | % | 6 | % | |||||||||||||
| Interest on other financial liabilities | 48 | 57 | 20 | -65 | % | -58 | % | |||||||||||||
| Total financial expense | 17,756 | 11,365 | 9,608 | -16 | % | -46 | % | |||||||||||||
| Expenses from interest on deposits | 16,400 | 10,555 | 8,757 | -17 | % | -47 | % | |||||||||||||
In 1Q20, the Bank’s accumulated net interest margin (including FX) was 19.2%, lower than the 24.8% posted in 4Q19 and in 1Q19.
In 1Q20 Net Interest Margin (excluding FX) was 18.7%, lower than the 23.9% posted in 4Q19 and the 24.8% in 1Q19.
In 1Q20 Net Interest Margin (Pesos) was 30.3%, lower than the 40.3% posted in 4Q19 and higher than the 24% in 1Q19; meanwhile Net Interest Margin (USD) was 3.9%, higher than the 3.5% posted in 4Q19 and the 1.1% in 1Q19.
| ASSETS & LIABILITIES PERFORMANCE (AR$) | MACRO Consolidated | |||||||||||||||||||||||||||||||||||
| In MILLION $ (Measuring Unit Current at EOP) | 1Q19 | 4Q19 | 1Q20 | |||||||||||||||||||||||||||||||||
| AVERAGE | REAL INT | NOMINAL | AVERAGE | REAL INT | NOMINAL | AVERAGE | REAL INT | NOMINAL | ||||||||||||||||||||||||||||
| BALANCE | RATE | INT. RATE | BALANCE | RATE | INT. RATE | BALANCE | RATE | INT. RATE | ||||||||||||||||||||||||||||
| Yields & rates in annualized nominal % | ||||||||||||||||||||||||||||||||||||
| Interest-earning assets | ||||||||||||||||||||||||||||||||||||
| Loans & Other Financing | ||||||||||||||||||||||||||||||||||||
| Public Sector | 2,121 | 42.0 | % | 58.7 | % | 3,096 | 24.6 | % | 39.2 | % | 6,229 | 25.9 | % | 35.8 | % | |||||||||||||||||||||
| Financial Sector | 6,303 | 33.2 | % | 48.9 | % | 3,581 | 34.9 | % | 50.7 | % | 2,118 | 35.6 | % | 46.2 | % | |||||||||||||||||||||
| Private Sector | 188,742 | 28.5 | % | 43.7 | % | 187,622 | 32.7 | % | 48.2 | % | 168,651 | 31.1 | % | 41.3 | % | |||||||||||||||||||||
| Other debt securities | ||||||||||||||||||||||||||||||||||||
| Central Bank Securities (Leliqs) | 118,013 | 31.9 | % | 47.4 | % | 24,467 | 80.0 | % | 101.0 | % | 72,296 | 35.1 | % | 45.6 | % | |||||||||||||||||||||
| Government & Private Securities | 13,161 | 12.1 | % | 25.3 | % | 22,396 | 67.6 | % | 87.2 | % | 20,164 | 44.4 | % | 55.7 | % | |||||||||||||||||||||
| Repos | 4,260 | 32.1 | % | 47.6 | % | 3,854 | 61.4 | % | 80.3 | % | 3,337 | 33.3 | % | 43.7 | % | |||||||||||||||||||||
| Total interest-earning assets | 332,600 | 29.3 | % | 44.5 | % | 245,016 | 41.0 | % | 57.5 | % | 272,795 | 33.1 | % | 43.4 | % | |||||||||||||||||||||
| Non interest-earning assets | 94,837 | 99,071 | 90,214 | |||||||||||||||||||||||||||||||||
| Total Average Assets | 427,437 | 344,087 | 363,009 | |||||||||||||||||||||||||||||||||
| Interest-bearing liabilities | ||||||||||||||||||||||||||||||||||||
| Deposits | ||||||||||||||||||||||||||||||||||||
| Public Sector | 26,187 | 18.0 | % | 31.9 | % | 8,617 | 24.5 | % | 39.1 | % | 11,599 | 16.2 | % | 25.3 | % | |||||||||||||||||||||
| Private Sector | 189,879 | 16.0 | % | 29.7 | % | 130,605 | 15.4 | % | 28.9 | % | 141,796 | 13.4 | % | 22.3 | % | |||||||||||||||||||||
| BCRA and other financial institutions | 628 | 28.8 | % | 44.0 | % | 234 | 28.2 | % | 43.2 | % | 343 | 17.9 | % | 27.1 | % | |||||||||||||||||||||
| Corporate bonds | 9,546 | 16.1 | % | 29.7 | % | 6,202 | 2.0 | % | 13.9 | % | 5,455 | 12.2 | % | 20.9 | % | |||||||||||||||||||||
| Repos | 914 | 32.4 | % | 48.0 | % | 279 | 29.0 | % | 44.1 | % | 1,150 | 14.0 | % | 22.9 | % | |||||||||||||||||||||
| Total int.-bearing liabilities | 227,154 | 16.3 | % | 30.0 | % | 145,937 | 15.4 | % | 28.9 | % | 160,343 | 13.6 | % | 22.5 | % | |||||||||||||||||||||
| Total non int.-bearing liab. & equity | 95,048 | 93,862 | 93,443 | |||||||||||||||||||||||||||||||||
| Total Average Liabilities & Equity | 322,202 | 239,799 | 253,786 | |||||||||||||||||||||||||||||||||
| Assets Performance | 36,512 | 35,509 | 29,545 | |||||||||||||||||||||||||||||||||
| Liabilities Performance | 16,819 | 10,634 | 8,981 | |||||||||||||||||||||||||||||||||
| Net Interest Income | 19,693 | 24,875 | 20,564 | |||||||||||||||||||||||||||||||||
| Total interest-earning assets | 332,600 | 245,016 | 272,795 | |||||||||||||||||||||||||||||||||
| Net Interest Margin (NIM) | 24.0 | % | 40.3 | % | 30.3 | % | ||||||||||||||||||||||||||||||
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| ASSETS & LIABILITIES PERFORMANCE USD | MACRO Consolidated | |||||||||||||||||||||||||||||||||||
| In MILLION $ (Measuring Unit Current at EOP) | 1Q19 | 4Q19 | 1Q20 | |||||||||||||||||||||||||||||||||
| AVERAGE BALANCE | REAL INT RATE | NOMINAL INT. RATE | AVERAGE BALANCE | REAL INT RATE | NOMINAL INT. RATE | AVERAGE BALANCE | REAL INT RATE | NOMINAL INT. RATE | ||||||||||||||||||||||||||||
| Yields & rates in annualized nominal % | ||||||||||||||||||||||||||||||||||||
| Interest-earning assets | ||||||||||||||||||||||||||||||||||||
| Cash and Deposits in Banks | 17,265 | 3.8 | % | 1.1 | % | 29,366 | -5.9 | % | 1.0 | % | 30,791 | 0.6 | % | 0.8 | % | |||||||||||||||||||||
| Loans & Other Financing | ||||||||||||||||||||||||||||||||||||
| Financial Sector | 774 | 8.8 | % | 6.0 | % | 340 | -1.1 | % | 6.2 | % | 460 | 6.8 | % | 6.9 | % | |||||||||||||||||||||
| Private Sector | 75,626 | 8.7 | % | 6.0 | % | 42,596 | 4.3 | % | 11.9 | % | 42,120 | 12.0 | % | 12.2 | % | |||||||||||||||||||||
| Other debt securities | ||||||||||||||||||||||||||||||||||||
| Government & Private Securities | 1,940 | 8.6 | % | 5.9 | % | 1,854 | -2.3 | % | 4.9 | % | 2,798 | 2.0 | % | 2.2 | % | |||||||||||||||||||||
| Total interest-earning assets | 95,605 | 7.8 | % | 5.1 | % | 74,156 | 0.0 | % | 7.4 | % | 76,169 | 7.0 | % | 7.2 | % | |||||||||||||||||||||
| Non interest-earning assets | 55,689 | 49,339 | 43,650 | |||||||||||||||||||||||||||||||||
| Total Average Assets | 151,294 | 123,495 | 119,819 | |||||||||||||||||||||||||||||||||
| Interest-bearing liabilities | ||||||||||||||||||||||||||||||||||||
| Deposits | ||||||||||||||||||||||||||||||||||||
| Public Sector | 1,368 | 4.5 | % | 1.8 | % | 1,154 | -5.1 | % | 1.9 | % | 1,978 | 1.0 | % | 1.1 | % | |||||||||||||||||||||
| Private Sector | 94,598 | 4.6 | % | 1.9 | % | 57,461 | -5.6 | % | 1.4 | % | 56,543 | 0.9 | % | 1.0 | % | |||||||||||||||||||||
| BCRA and other financial institutions | 3,854 | 7.6 | % | 4.9 | % | 2,784 | -1.4 | % | 5.9 | % | 1,272 | 6.1 | % | 6.3 | % | |||||||||||||||||||||
| Subordinated bonds | 25,183 | 9.7 | % | 7.0 | % | 27,360 | -0.4 | % | 7.0 | % | 25,841 | 7.0 | % | 7.1 | % | |||||||||||||||||||||
| Total int.-bearing liabilities | 125,003 | 5.7 | % | 3.0 | % | 88,759 | -3.8 | % | 3.3 | % | 85,634 | 2.8 | % | 2.9 | % | |||||||||||||||||||||
| Total non int.-bearing liabilities | 27,633 | 27,666 | 27,554 | |||||||||||||||||||||||||||||||||
| Total Average liabilities | 152,636 | 116,425 | 113,188 | |||||||||||||||||||||||||||||||||
| Assets Performance | 1,205 | 1,383 | 1,365 | |||||||||||||||||||||||||||||||||
| Liabilities Performance | 937 | 731 | 627 | |||||||||||||||||||||||||||||||||
| Net Interest Income | 268 | 652 | 738 | |||||||||||||||||||||||||||||||||
| Total interest-earning assets | 95,605 | 74,166 | 76,169 | |||||||||||||||||||||||||||||||||
| Net Interest Margin (NIM) | 1.1 | % | 3.5 | % | 3.9 | % | ||||||||||||||||||||||||||||||
In 1Q20 Banco Macro’s net fee income totaled Ps.4.4 billion, 4% or Ps.185 million lower than in 4Q19 and 14% or Ps.700 million lower than the same period of last year.
In the quarter, fee income totaled Ps.4.9 billion, 5% or Ps.238 million lower than in 4Q19. Fees charged to Provinces for financial agency services, corporate services fees, and AFIP and collection services fees stand out; with a 34%, 11% and 63% decrease respectively QoQ. On a yearly basis, fee income decreased 12% or Ps.636 million.
In the quarter, total fee expense decreased 11% or Ps.53 million. On a yearly basis, fee expenses increased 17% or Ps.63 million.
| NET FEE INCOME | MACRO Consolidated | Change | ||||||||||||||||||
| In MILLION $ (Measuring Unit Current at EOP) | 1Q19 | 4Q19 | 1Q20 | QoQ | YoY | |||||||||||||||
| Fees charged on deposit accounts | 2,405 | 1,803 | 1,778 | -1 | % | -26 | % | |||||||||||||
| Credit card fees | 1,219 | 1,027 | 1,074 | 5 | % | -12 | % | |||||||||||||
| Corporate services fees | 511 | 605 | 538 | -11 | % | 5 | % | |||||||||||||
| ATM transactions fees | 211 | 439 | 405 | -8 | % | 92 | % | |||||||||||||
| Insurance fees | 349 | 296 | 309 | 4 | % | -11 | % | |||||||||||||
| Debit card fees | 271 | 256 | 252 | -2 | % | -7 | % | |||||||||||||
| Financial agent fees (Provinces) | 233 | 361 | 239 | -34 | % | 3 | % | |||||||||||||
| Credit related fees | 229 | 174 | 152 | -13 | % | -34 | % | |||||||||||||
| Mutual funds & securities fees | 32 | 69 | 85 | 23 | % | 166 | % | |||||||||||||
| AFIP & Collection services | 30 | 64 | 24 | -63 | % | -20 | % | |||||||||||||
| ANSES fees | 13 | 11 | 11 | 0 | % | -15 | % | |||||||||||||
| Total fee income | 5,503 | 5,105 | 4,867 | -5 | % | -12 | % | |||||||||||||
| Total fee expense | 373 | 489 | 436 | -11 | % | 17 | % | |||||||||||||
| Net fee income | 5,130 | 4,616 | 4,431 | -4 | % | -14 | % | |||||||||||||
9
In 1Q20 Net Income from financial assets and liabilities at fair value through profit or loss totaled a Ps.4.1 billion loss, Ps.3.8 billion higher than the one registered in 4Q19, this loss is mainly due to an 85% or Ps.2.7 billion decrease in profit from the sale of financial assets at fair value as a consequence of the inflation adjustment applied to our Leliq holdings and a 40% or Ps.872 million decline in profit from government securities.
| NET INCOME FROM FINANCIAL ASSETS AND LIABILITIES AT FAIR VALUE THROUGH PROFIT OR LOSS | MACRO Consolidated | Change | ||||||||||||||||||
| In MILLION $ (Measuring Unit Current at EOP) | 1Q19 | 4Q19 | 1Q20 | QoQ | YoY | |||||||||||||||
| Profit or loss from government securities | 260 | 2,201 | 1,329 | -40 | % | 411 | % | |||||||||||||
| Profit or loss from private securities | 232 | 304 | 226 | -26 | % | -3 | % | |||||||||||||
| Profit or loss from investment in derivative financing instruments | 453 | 257 | 36 | -86 | % | -92 | % | |||||||||||||
| Profit or loss from other financial assets | 65 | 56 | -5 | - | - | |||||||||||||||
| Profit or loss from investment in equity instruments | 2,048 | 15 | 90 | - | 500 | % | ||||||||||||||
| Profit or loss from the sale of financial assets at fair value | -11,158 | -3,112 | -5,769 | 85 | % | -48 | % | |||||||||||||
| Income from financial assets at fair value through profit or loss | -8,100 | -279 | -4,093 | 1367 | % | -49 | % | |||||||||||||
| Profit or loss from derivative financing instruments | -3 | 0 | 0 | - | - | |||||||||||||||
| Income from financial liabilities at fair value through profit or loss | -3 | 0 | 0 | - | - | |||||||||||||||
| NET INCOME FROM FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS | -8,103 | -279 | -4,093 | 1367 | % | -49 | % | |||||||||||||
In the quarter Other Operating Income totaled Ps.1.1 billion, 9% or Ps.88 million lower than in 4Q19. On a yearly basis Other Operating Income decreased 77% or Ps.3.7 billion (note that in 1Q19 the result from the sale of Prisma S.A. was registered). If we were to exclude the Ps.3.8 billion (restated in terms of the measuring unit current at the end of 1Q20) Other Operating Income increased 14% or Ps.131 million on a yearly basis.
| OTHER OPERATING INCOME | MACRO Consolidated | Change | ||||||||||||||||||
| In MILLION $ (Measuring Unit Current at EOP) | 1Q19 | 4Q19 | 1Q20 | QoQ | YoY | |||||||||||||||
| Credit and debit cards | 56 | 48 | 25 | -48 | % | -55 | % | |||||||||||||
| Lease of safe deposit boxes | 112 | 124 | 134 | 8 | % | 20 | % | |||||||||||||
| Other service related fees | 399 | 300 | 482 | 61 | % | 21 | % | |||||||||||||
| Other adjustments and interest from other receivables | 203 | 205 | 202 | -1 | % | 0 | % | |||||||||||||
| Initial recognition of loans | 41 | 39 | 0 | -100 | % | -100 | % | |||||||||||||
| Others | 3,987 | 295 | 256 | -13 | % | -94 | % | |||||||||||||
| Other Operating Income | 4,798 | 1,011 | 1,099 | 9 | % | -77 | % | |||||||||||||
In 1Q20 Banco Macro’s administrative expenses plus employee benefits totaled Ps.7.4 billion, 20% or Ps.1.9 billion lower than the previous quarter, due to lower expenses related to employee benefits (salary increases and severance pay) and lower maintenance and conservation fees. On a yearly basis administrative expenses plus employee benefits decreased 9% or Ps.690 million.
Employee benefits decreased 15% or Ps.862 million QoQ (the main drivers for the decrease were lower salaries and lower social security contributions (Ps.719 million). On a yearly basis Employee benefits decreased 3% or Ps.126 million.
As of 1Q20, the accumulated efficiency ratio reached 39.8%, deteriorating from the 35.5% posted in 4Q19. In 1Q20 expenses (employee benefits + G&A expenses + depreciation and impairment of assets) decreased 20%, while income (net interest income + net fee income + differences in quoted prices of gold and foreign currency + other operating income + net income from financial assets at fair value through profit or loss – (Turnover Tax + Insurance on deposits)) decreased 27% compared to 4Q19.
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| PERSONNEL & ADMINISTRATIVE EXPENSES | MACRO Consolidated | Change | ||||||||||||||||||
| In MILLION $ (Measuring Unit Current at EOP) | 1Q19 | 4Q19 | 1Q20 | QoQ | YoY | |||||||||||||||
| Employee benefits | 4,852 | 5,588 | 4,726 | -15 | % | -3 | % | |||||||||||||
| Remunerations | 3,560 | 4,056 | 3,483 | -14 | % | -2 | % | |||||||||||||
| Social Security Contributions | 739 | 920 | 774 | -16 | % | 5 | % | |||||||||||||
| Compensation and bonuses | 429 | 464 | 365 | -21 | % | -15 | % | |||||||||||||
| Employee services | 124 | 148 | 104 | -30 | % | -16 | % | |||||||||||||
| Administrative Expenses | 3,238 | 3,693 | 2,674 | -28 | % | -17 | % | |||||||||||||
| Taxes | 413 | 396 | 385 | -3 | % | -7 | % | |||||||||||||
| Maintenance, conservation fees | 433 | 553 | 405 | -27 | % | -6 | % | |||||||||||||
| Directors & statutory auditors fees | 496 | 633 | 303 | -52 | % | -39 | % | |||||||||||||
| Security services | 328 | 320 | 294 | -8 | % | -10 | % | |||||||||||||
| Electricity & Communications | 322 | 323 | 311 | -4 | % | -3 | % | |||||||||||||
| Other professional fees | 253 | 284 | 184 | -35 | % | -27 | % | |||||||||||||
| Rental agreements | 82 | 46 | 23 | -50 | % | -72 | % | |||||||||||||
| Advertising & publicity | 79 | 173 | 58 | -66 | % | -27 | % | |||||||||||||
| Personnel allowances | 51 | 52 | 33 | -37 | % | -35 | % | |||||||||||||
| Stationary & Office Supplies | 27 | 22 | 19 | -14 | % | -30 | % | |||||||||||||
| Insurance | 31 | 33 | 26 | -21 | % | -16 | % | |||||||||||||
| Hired administrative services | 1 | 1 | 1 | 0 | % | 0 | % | |||||||||||||
| Other | 722 | 857 | 632 | -26 | % | -12 | % | |||||||||||||
| Total Administrative Expenses | 8,090 | 9,281 | 7,400 | -20 | % | -9 | % | |||||||||||||
| Total Employees | 8,978 | 8,768 | 8,732 | |||||||||||||||||
| Branches | 464 | 463 | 463 | |||||||||||||||||
| Efficiency ratio | 25.3 | % | 35.5 | % | 39.8 | % | ||||||||||||||
| Accumulated efficiency ratio | 25.3 | % | 26.8 | % | 39.8 | % | ||||||||||||||
In 1Q20, Other Operating Expenses totaled Ps.4.3 billion, decreasing 17% or Ps.857 million QoQ. Turnover Tax and Others stand out with a 17% (Ps.486 million) decrease and an 18% (Ps.286 million) decrease respectively QoQ. On a yearly basis Other Operating Expenses decreased 12% or Ps.591 million.
| OTHER OPERATING EXPENSES | MACRO Consolidated | Change | ||||||||||||||||||
| In MILLION $ (Measuring Unit Current at EOP) | 1Q19 | 4Q19 | 1Q20 | QoQ | YoY | |||||||||||||||
| Turnover Tax | 2,874 | 2,931 | 2,445 | -17 | % | -15 | % | |||||||||||||
| Other provision charges | 283 | 343 | 300 | -13 | % | 6 | % | |||||||||||||
| Deposit Guarantee Fund Contributions | 161 | 124 | 121 | -2 | % | -25 | % | |||||||||||||
| Donations | 54 | 149 | 108 | -28 | % | 100 | % | |||||||||||||
| Insurance claims | 17 | 16 | 15 | -6 | % | -12 | % | |||||||||||||
| Others | 1,527 | 1,619 | 1,333 | -18 | % | -13 | % | |||||||||||||
| Other Operating Expenses | 4,916 | 5,182 | 4,325 | -17 | % | -12 | % | |||||||||||||
In 1Q20 the result from the net monetary position totaled a Ps.295 million gain, improving 106% or Ps.5.4 billion from the Ps.5.1 billion loss posted in 4Q19. This result is explained by the breakdown of monetary assets and monetary liabilities and their behavior during the quarter; monetary assets (cash, loans, government securities) decreased while monetary liabilities (deposits) increased, generating a positive result. On a yearly basis result from net monetary position decreased 91% or Ps.2.9 billion.
In 1Q20 Banco Macro's effective income tax rate was 35.8%, lower than the 41.4% effective tax rate of 4Q19 and the 38.3% registered a year ago.
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Financial Assets
Private sector financing
The volume of “core” financing to the private sector (including loans, financial trust and leasing portfolio) totaled Ps.219.8 billion, decreasing 4% or Ps.9.2 billion QoQ and 15% or Ps.38.7 billion YoY.
Within commercial loans, Documents and Others stand out with an 8% or Ps.1.7 billion and a 14% or Ps.3.5 billion increase QoQ respectively; meanwhile Overdrafts decreased 20% or Ps.7.9 billion.
Within consumer lending personal loans and credit card loans decreased 4% or Ps.2.3 billion and 3% or Ps.1.2 billion respectively QoQ.
Within private sector financing, peso financing decreased 4% or 7.6 billion, while US dollar financing decreased 11% or USD74 million.
As of 1Q20, Banco Macro´s market share over private sector loans was 8.1%.
| FINANCING TO THE PRIVATE SECTOR | MACRO Consilidated | Change | ||||||||||||||||||
| In MILLION $ (Measuring Unit Current at EOP) | 1Q19 | 4Q19 | 1Q20 | QoQ | YoY | |||||||||||||||
| Overdrafts | 16,520 | 40,035 | 32,161 | -20 | % | 95 | % | |||||||||||||
| Discounted documents | 38,957 | 21,190 | 22,907 | 8 | % | -41 | % | |||||||||||||
| Mortgage loans | 18,936 | 13,733 | 12,760 | -7 | % | -33 | % | |||||||||||||
| Pledged loans | 6,464 | 4,319 | 3,723 | -14 | % | -42 | % | |||||||||||||
| Personal loans | 84,687 | 59,924 | 57,599 | -4 | % | -32 | % | |||||||||||||
| Credit Card loans | 43,951 | 45,445 | 44,286 | -3 | % | 1 | % | |||||||||||||
| Others | 34,803 | 24,414 | 27,885 | 14 | % | -20 | % | |||||||||||||
| Interest | 10,927 | 16,679 | 15,655 | -6 | % | 43 | % | |||||||||||||
| Total loan portfolio | 255,245 | 225,739 | 216,976 | -4 | % | -15 | % | |||||||||||||
| Total loans in Pesos | 175,297 | 185,223 | 177,936 | -4 | % | 2 | % | |||||||||||||
| Total loans in USD | 79,948 | 40,516 | 39,040 | -4 | % | -51 | % | |||||||||||||
| Financial trusts | 2,037 | 2,088 | 1,652 | -21 | % | -19 | % | |||||||||||||
| Leasing | 570 | 247 | 196 | -21 | % | -66 | % | |||||||||||||
| Others | 652 | 927 | 958 | 3 | % | 47 | % | |||||||||||||
| Total other financing | 3,259 | 3,262 | 2,806 | -14 | % | -14 | % | |||||||||||||
| Total other financing in Pesos | 2,346 | 2,150 | 1,841 | -14 | % | -22 | % | |||||||||||||
| Total other financing in USD | 913 | 1,112 | 965 | -13 | % | 6 | % | |||||||||||||
| Total financing to the private sector | 258,504 | 229,001 | 219,782 | -4 | % | -15 | % | |||||||||||||
| EOP FX (Pesos per USD) | 43.3533 | 59.8950 | 64.4700 | 8 | % | 49 | % | |||||||||||||
| USD financing / Financing to the private sector | 31 | % | 18 | % | 18 | % | ||||||||||||||
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Public Sector Assets
In 1Q20, the Bank’s public sector assets (excluding LELIQs) to total assets ratio was 5%, lower than the 6.3% registered in the previous quarter, and higher than the 3% posted in 1Q19.
In 1Q20, a 44% or Ps.21.9 billion increase in Leliqs stands out; also in 1Q20 an 8% or Ps.1.9 billion decrease in Other government securities was experienced and a 41% or Ps.2.8 billion decrease in Provincial loans.
| PUBLIC SECTOR ASSETS | MACRO Consolidated | Change | ||||||||||||||||||
| In MILLION $ (Measuring Unit Current at EOP) | 1Q19 | 4Q19 | 1Q20 | QoQ | YoY | |||||||||||||||
| Leliqs | 146,752 | 49,515 | 71,442 | 44 | % | -51 | % | |||||||||||||
| Other | 16,172 | 22,983 | 21,053 | -8 | % | 30 | % | |||||||||||||
| Government securities | 162,924 | 72,498 | 92,495 | 28 | % | -43 | % | |||||||||||||
| Provincial loans | 1,775 | 6,803 | 4,042 | -41 | % | 128 | % | |||||||||||||
| Loans | 1,775 | 6,803 | 4,042 | -41 | % | 128 | % | |||||||||||||
| Purchase of government bonds | 126.10 | 114 | 121 | 6 | % | -4 | % | |||||||||||||
| Other receivables | 126 | 114 | 121 | 6 | % | -4 | % | |||||||||||||
| TOTAL PUBLIC SECTOR ASSETS | 164,825 | 79,415 | 96,658 | 22 | % | -41 | % | |||||||||||||
| TOTAL PUBLIC SECTOR ASSETS (net of LEBAC/NOBAC/LELIQ) | 18,073 | 29,900 | 25,216 | -16 | % | 40 | % | |||||||||||||
| TOTAL PUBLIC SECTOR ASSETS (net of LEBAC/NOBAC/LELIQ)/TOTAL ASSETS | 3.0 | % | 6.3 | % | 5.0 | % | ||||||||||||||
Funding
Deposits
Banco Macro’s deposit base totaled Ps.311.3 billion in 1Q20, increasing 10% or Ps.27.9 billion QoQ and decreasing 23% or Ps.93.1 billion YoY and representing 80% of the Bank’s total liabilities.
On a quarterly basis, both private sector and public sector deposits increased with a 7% or Ps.19.6 billion increase and a 44% or Ps.8.4 billion increase respectively.
The increase in private sector deposits was led by demand deposits, which increased 6% or Ps.8.1 billion, while time deposits increased 11% or Ps.12.9 billion QoQ.
Within private sector deposits, peso deposits increased 14% or Ps.26.3 billion, while US dollar deposits decreased 8% or USD106 million.
As of 1Q20, Banco Macro´s market share over private sector deposits was 6.1%.
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| DEPOSITS | MACRO Consolidated | Change | ||||||||||||||||||
| In MILLION $ (Measuring Unit Current at EOP) | 1Q19 | 4Q19 | 1Q20 | QoQ | YoY | |||||||||||||||
| Public sector | 41,767 | 18,930 | 27,310 | 44 | % | -35 | % | |||||||||||||
| Financial sector | 313 | 339 | 291 | -14 | % | -7 | % | |||||||||||||
| Private sector | 362,357 | 264,099 | 283,714 | 7 | % | -22 | % | |||||||||||||
| Checking accounts | 36,369 | 43,253 | 53,685 | 24 | % | 48 | % | |||||||||||||
| Savings accounts | 98,913 | 97,804 | 95,451 | -2 | % | -4 | % | |||||||||||||
| Time deposits | 220,804 | 114,341 | 127,287 | 11 | % | -42 | % | |||||||||||||
| Other | 6,271 | 8,701 | 7,291 | -16 | % | 16 | % | |||||||||||||
| Total | 404,437 | 283,368 | 311,315 | 10 | % | -23 | % | |||||||||||||
| Pesos | 278,367 | 197,471 | 233,413 | 18 | % | -16 | % | |||||||||||||
| Foreign Currency (Pesos) | 126,070 | 85,897 | 77,902 | -9 | % | -38 | % | |||||||||||||
| EOP FX (Pesos per USD) | 43.3533 | 59.8950 | 64.4700 | 8 | % | 49 | % | |||||||||||||
| Foreign Currency (USD) | 2,908 | 1,434 | 1,208 | -16 | % | -58 | % | |||||||||||||
| USD Deposits / Total Deposits | 31 | % | 30 | % | 25 | % | ||||||||||||||
Banco Macro’s transactional deposits represent approximately 51% of its total deposit base as of 1Q20. These accounts are low cost and are not sensitive to interest rate increases.
Other sources of funds
In 1Q20, the total amount of other sources of funds increased 3% or Ps.4.4 billion compared to 4Q19. In 1Q20 Shareholder’s Equity increased 5% or Ps.6 billion due to the positive result registered in the quarter and was partially offset by Other Comprehensive Income of Ps.1 billion loss. On a yearly basis other sources of funds increased 5% or Ps.6.7 billion pesos.
| OTHER SOURCES OF FUNDS | MACRO Consolidated | Change | ||||||||||||||||||
| In MILLION $ (Measuring Unit Current at EOP) | 1Q19 | 4Q19 | 1Q20 | QoQ | YoY | |||||||||||||||
| Central Bank of Argentina | 30 | 29 | 16 | -45 | % | -47 | % | |||||||||||||
| Banks and international institutions | 3,479 | 1,981 | 519 | -74 | % | -85 | % | |||||||||||||
| Financing received from Argentine financial institutions | 1,105 | 410 | 328 | -20 | % | -70 | % | |||||||||||||
| Subordinated corporate bonds | 26,461 | 26,208 | 26,606 | 2 | % | 1 | % | |||||||||||||
| Corporate bonds | 9,367 | 5,956 | 5,463 | -8 | % | -42 | % | |||||||||||||
| Shareholders' equity | 104,907 | 113,036 | 119,069 | 5 | % | 13 | % | |||||||||||||
| Total other source of funds | 145,349 | 147,620 | 152,001 | 3 | % | 5 | % | |||||||||||||
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Liquid Assets
In 1Q20, the Bank’s liquid assets amounted to Ps.204.1 billion, showing a 23% or Ps.37.9 billion increase QoQ, and a 24% or Ps.63.2 billion decrease on a yearly basis.
In 1Q20, LELIQs own portfolio increased 44% or Ps.21.9 billion, also in the quarter cash increased 14% or Ps.14.8 billion.
In 1Q20 Banco Macro’s liquid assets to total deposits ratio reached 66%.
| LIQUID ASSETS | MACRO Consolidated | Change | ||||||||||||||||||
| In MILLION $ (Measuring Unit Current at EOP) | 1Q19 | 4Q19 | 1Q20 | QoQ | YoY | |||||||||||||||
| Cash | 111,725 | 108,533 | 123,321 | 14 | % | 10 | % | |||||||||||||
| Guarantees for compensating chambers | 8,508 | 8,019 | 8,699 | 8 | % | 2 | % | |||||||||||||
| Call | 265 | 108 | 600 | 456 | % | 126 | % | |||||||||||||
| Leliq own portfolio | 146,752 | 49,515 | 71,442 | 44 | % | -51 | % | |||||||||||||
| Total | 267,250 | 166,175 | 204,062 | 23 | % | -24 | % | |||||||||||||
| Liquid assets to total deposits | 66.0 | % | 59.0 | % | 66.0 | % | ||||||||||||||
Solvency
Banco Macro continued showing high solvency levels in 1Q20 with an integrated capital (RPC) of Ps.129.5 billion over a total capital requirement of Ps.33.1 billion. Banco Macro’s excess capital in 1Q20 was 291% or Ps.96.4 billion. During 1Q20 and due to inflation adjustments Equity increased 3% (shown under Ordinary Capital Level 1).
The regulatory capital ratio (as a percentage of risk-weighted assets- RWA) was 32% in 1Q20; TIER1 Ratio stood at 25.4%.
The Bank’s aim is to make the best use of this excess capital.
| MINIMUM CAPITAL REQUIREMENT | MACRO Consolidated | Change | ||||||||||||||||||
| In MILLION $ | 1Q19(¹) | 4Q19(¹) | 1Q20(²) | QoQ | YoY | |||||||||||||||
| Credit risk requirement | 16,329 | 21,404 | 23,808 | 11 | % | 46 | % | |||||||||||||
| Market risk requirement | 284 | 591 | 694 | 17 | % | 145 | % | |||||||||||||
| Operational risk requirement | 5,189 | 7,563 | 8,606 | 14 | % | 66 | % | |||||||||||||
| Total capital requirements | 21,802 | 29,558 | 33,108 | 12 | % | 52 | % | |||||||||||||
| Ordinary Capital Level 1 (COn1) | 58,520 | 83,090 | 115,532 | 39 | % | 97 | % | |||||||||||||
| Deductible concepts Level 1 (COn1) | -3,708 | -10,637 | -12,442 | 17 | % | 235 | % | |||||||||||||
| Capital Level 2 (COn2) | 19,092 | 26,113 | 26,427 | 1 | % | 38 | % | |||||||||||||
| Integrated capital - RPC (i) | 73,903 | 98,566 | 129,517 | 31 | % | 75 | % | |||||||||||||
| Excess capital | 52,101 | 69,009 | 96,409 | 40 | % | 85 | % | |||||||||||||
| Risk-weighted assets - RWA (ii) | 266,581 | 361,678 | 405,179 | 12 | % | 52 | % | |||||||||||||
| Regulatory Capital ratio [(i)/(ii)] | 27.7 | % | 27.3 | % | 32.0 | % | ||||||||||||||
| Ratio TIER 1 [Capital Level 1/RWA] | 20.6 | % | 20.0 | % | 25.4 | % | ||||||||||||||
RWA - (ii): Risk Weighted Assets, considering total capital requirements.
(¹) Figueres are not inflation adjusted. Expressed in Pesos current at end of each quarter
(²) Figures are inflaiton adjusted. Expressed in Pesos current at EOP
15
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Asset Quality
In 1Q20, Banco Macro’s non-performing to total financing ratio (under Central Bank rules) reached a level of 1.36%, down from 2.07% in 4Q19, and the 2.03% posted in 1Q19.
Consumer portfolio non-performing loans improved 132b.p. (down to 1.36% from 2.68%) while Commercial portfolio non-performing loans were almost unchanged in 1Q20 (up to 1.36% from 1.34%).
Consumer portfolio non-performing loans ratio improved significantly due to recent measures adopted by the Central Bank of Argentina in the current Covid19 pandemic context, particularly the 60 day grace period that was added to debtor classification before a loan is considered
The coverage ratio (measured as total allowances under Expected Credit Losses over Non Performing loans under Central Bank rules) reached 173.49% in 1Q20. Write-offs over total loans totaled 0.22%.
The Bank is committed to continue working in this area to maintain excellent asset quality standards.
| ASSET QUALITY | MACRO Consolidated | Change | ||||||||||||||||||
| In MILLION $ (Measuring Unit Current at EOP) | 1Q19 | 4Q19 | 1Q20 | QoQ | YoY | |||||||||||||||
| Commercial portfolio | 102,061 | 112,244 | 99,354 | -11 | % | -3 | % | |||||||||||||
| Non-performing | 917 | 1,499 | 1,353 | -10 | % | 48 | % | |||||||||||||
| Consumer portfolio | 170,515 | 137,411 | 134,924 | -2 | % | -21 | % | |||||||||||||
| Non-performing | 4,616 | 3,676 | 1,835 | -50 | % | -60 | % | |||||||||||||
| Total portfolio | 272,576 | 249,655 | 234,279 | -6 | % | -14 | % | |||||||||||||
| Non-performing | 5,533 | 5,175 | 3,188 | -38 | % | -42 | % | |||||||||||||
| Commercial non-perfoming ratio | 0.90 | % | 1.34 | % | 1.36 | % | ||||||||||||||
| Consumer non-perfoming ratio | 2.71 | % | 2.68 | % | 1.36 | % | ||||||||||||||
| Total non-performing/ Total portfolio | 2.03 | % | 2.07 | % | 1.36 | % | ||||||||||||||
| Total allowances | 6,192 | 5,488 | 5,531 | 1 | % | -11 | % | |||||||||||||
| Coverage ratio w/allowances | 111.91 | % | 106.05 | % | 173.49 | % | ||||||||||||||
| Write Offs | 1,434 | 664 | 522 | -21 | % | -64 | % | |||||||||||||
| Write Offs/ Total portfolio | 0.53 | % | 0.27 | % | 0.22 | % | ||||||||||||||
16
Expected Credit Losses (E.C.L) (I.F.R.S.9)
The Bank records an allowance for expected credit losses for all loans and other debt financial assets not held at fair value through profit or loss, together with loan commitments and financial guarantee contracts, in this section all referred to as ‘financial instruments’. Equity instruments are not subject to impairment under IFRS 9. The ECL allowance is based on the credit losses expected to arise over the life of the asset (the lifetime expected credit loss), unless there has been no significant increase in credit risk since origination, in which case, the allowance is based on the 12 months expected credit loss.(For further information please see our 2019 20-F)
The table below shows, under the E.C.L model, the allowances for credit losses with their respective classification in stages, and the impact the transition to I.F.R.S. 9 has on earnings.
| Transition to I.F.R.S.9 (BOP Jan 1,2019) | ||||
| IN MILLION $ (Measuring Unit Current at end of 1Q20) | ||||
| Allowances under BCRA rules | 6,900 | |||
| Re-measurement of financial inst. | -466 | |||
| ECL under I.F.R.S9 (Jan 2019) | 6,434 | |||
| ECL under I.F.R.S.9 (1Q19) | 6,192 | |||
| Expected Credit Losses (ECL) - 2020 Evolution | ||||
| ECL under I.F.R.S.9 BOP 4Q19 | 5,488 | |||
| 12months ECL (Stage 1) | 43 | |||
| Financial inst. with increased credit risk (Stage 2) | 215 | |||
| Financial inst. considered credit impaired (Stage 3) | 182 | |||
| Monetary result generated by allowances | -397 | |||
| ECL under I.F.R.S.9 EOP 1Q20 | 5,531 | |||
17
CER Exposure and Foreign Currency Position
| CER EXPOSURE | MACRO Consolidated | Change | ||||||||||||||||||
| In MILLION $ (Measuring Unit Current at EOP) | 1Q19 | 4Q19 | 1Q20 | QoQ | YoY | |||||||||||||||
| CER adjustable ASSETS | ||||||||||||||||||||
| Government Securities | 119 | 4,229 | 2,585 | -39 | % | 2072 | % | |||||||||||||
| Loans (*) | 15,761 | 15,674 | 15,742 | 0 | % | 0 | % | |||||||||||||
| Private sector loans | 10,052 | 7,513 | 6,992 | -7 | % | -30 | % | |||||||||||||
| Mortgage loans (UVA adjusted) | 5,709 | 8,161 | 8,747 | 7 | % | 53 | % | |||||||||||||
| Other loans | 0 | 0 | 3 | - | - | |||||||||||||||
| Total CER adjustable assets | 15,880 | 19,903 | 18,327 | -8 | % | 15 | % | |||||||||||||
| CER adjustable LIABILITIES | ||||||||||||||||||||
| Deposits(*) | 491 | 232 | �� | 583 | 151 | % | 19 | % | ||||||||||||
| UVA Unemployment fund | 497 | 600 | 618 | 3 | % | 24 | % | |||||||||||||
| Total CER adjustable liabilities | 988 | 832 | 1,201 | 44 | % | 22 | % | |||||||||||||
| NET CER EXPOSURE | 14,892 | 19,071 | 17,126 | -10 | % | 15 | % | |||||||||||||
| (*) Includes Loans &Time Deposits CER adjustable (UVAs) | ||||||||||||||||||||
| FOREIGN CURRENCY POSITION | MACRO Consolidated | Change | ||||||||||||||||||
| In MILLION $ (Measuring Unit Current at EOP) | 1Q19 | 4Q19 | 1Q20 | QoQ | YoY | |||||||||||||||
| Cash and deposits in Banks | 68,669 | 76,489 | 68,573 | -10 | % | 0 | % | |||||||||||||
| Cash | 4,497 | 11,768 | 4,490 | -62 | % | 0 | % | |||||||||||||
| Central Bank of Argentina | 50,149 | 36,722 | 31,140 | -15 | % | -38 | % | |||||||||||||
| Other financial institutions local and abroad | 14,020 | 27,994 | 32,939 | 18 | % | 135 | % | |||||||||||||
| Others | 3 | 5 | 4 | -20 | % | 33 | % | |||||||||||||
| Net Income from financial instruments at fair value through P&L | 443 | 267 | 140 | -48 | % | -68 | % | |||||||||||||
| Derivatives | 2 | 0 | 0 | - | -100 | % | ||||||||||||||
| Other financial assets | 3,885 | 4,042 | 4,065 | 1 | % | 5 | % | |||||||||||||
| Loans and other financing | 81,241 | 42,014 | 39,930 | -5 | % | -51 | % | |||||||||||||
| Other financial institutions | 769 | 656 | 71 | -89 | % | -91 | % | |||||||||||||
| Non financial private sector & foreign residents | 80,472 | 41,358 | 39,859 | -4 | % | -50 | % | |||||||||||||
| Other debt securities | 1,948 | 933 | 3,716 | 298 | % | 91 | % | |||||||||||||
| Guarantees received | 2,605 | 3,118 | 2,090 | -33 | % | -20 | % | |||||||||||||
| Investment in equity instruments | 10 | 11 | 6 | -45 | % | -40 | % | |||||||||||||
| Investment in associates and joint ventures | 0 | 0 | 1 | 100 | % | 100 | % | |||||||||||||
| Total Assets | 158,803 | 126,874 | 118,521 | -7 | % | -25 | % | |||||||||||||
| Deposits | 126,070 | 85,897 | 77,902 | -9 | % | -38 | % | |||||||||||||
| Non financial public sector | 3,118 | 4,302 | 3,124 | -27 | % | 0 | % | |||||||||||||
| Financial sector | 248 | 248 | 246 | -1 | % | -1 | % | |||||||||||||
| Non financial private sector & foreign residents | 122,704 | 81,347 | 74,532 | -8 | % | -39 | % | |||||||||||||
| Other liabilities from financial intermediation | 5,563 | 5,657 | 5,806 | 3 | % | 4 | % | |||||||||||||
| Financing from the Central Bank and other fin. Inst | 3,770 | 2,205 | 688 | -69 | % | -82 | % | |||||||||||||
| Subordinated corporate bonds | 26,436 | 26,208 | 26,606 | 2 | % | 1 | % | |||||||||||||
| Other non financial liabilities | 63 | 27 | 30 | 11 | % | -52 | % | |||||||||||||
| Total Liabilities | 161,902 | 119,994 | 111,032 | -7 | % | -31 | % | |||||||||||||
| NET FX POSITION (Pesos) | -3,099 | 6,880 | 7,489 | 9 | % | -342 | % | |||||||||||||
| EOP FX (Pesos per USD) | 43.3533 | 59.8950 | 64.4700 | 8 | % | 49 | % | |||||||||||||
| NET FX POSITION (USD) | -71 | 115 | 116 | 1 | % | - | ||||||||||||||
18
| | |
Relevant and Recent Events
· Annual General Shareholders’ Meeting. –Cash Dividend- The Shareholders’ Meeting held on April 30th2020 resolved to distribute as cash dividend to the shareholders the amount of AR$ 12,788,268,160, which represents AR$ 20 per share, and delegated to the Board the powers to determine the date of the effective availability thereof to the shareholders in proportion to their respective shareholdings. The effective distribution of the dividends is subject to BCRA’s authorization, which has not yet been granted. Pursuant to the provisions of Communication “A” 6939 issued by the BCRA, the distribution of profits by financial entities is suspended until June 30th 2020.
· Repurchase of Class B peso denominated notes.As of this date, the Bank has repurchased an aggregate amount of Ps.463,224,000 of Class B peso denominated notes during FY2020.
· Repurchase of Class C Peso denominated Notes.As of this date, the Bank has repurchased Class C Peso denominated notes in the aggregate amount of Ps.66,000,000 (Ps.21,000,000 were cancelled in February) in FY2020.
· Class C peso denominated notes cancellation. In February 2020, the Bank cancelled class C peso denominated notes in the aggregate amount of Ps.794,500,000; reducing the total outstanding amount to Ps.2,413,000.
· Interest Payment Class C Peso denominated Notes.In April 2020, the Bank paid quarterly interest on Class C Peso denominated notes in the amount of Ps.223,632,686.48.
· Interest Payment Class A Subordinated Notes.In May 2020, the Bank paid semiannual interest on Class A subordinated notes in the amount of USD 13,500,000.
· Interest Payment Class B Peso denominated Notes.In May 2020, the Bank paid semiannual interest on Class B Peso denominated notes in the amount of Ps.252,804,212.
· Downgrade of Corporate bond Ratings:
| o | Moody’s Investor Services:Moody’s Investors Services and Moody’s Latin America in line with Moody’s lowering of the Argentine government's bond ratings, downgraded the global ratings of Banco Macro S.A., particularly the ratings affected were: |
| § | Global Scale Foreign Currency subordinated debt Series A notes from Caa3 to Ca Senior Unsecured debt Series B notes from Caa2 to Ca |
| § | National Scale: Senior Unsecured debt Series B notes from B1.ar to Ca.ar |
| o | Fitch Ratings: In line with Fitch’s lowering of the Argentine government's bond ratings they have assessed the ratings of Argentine Financial Institutions and consequentially downgraded the global ratings of Banco Macro S.A., particularly Banco Macro’s senior unsecured debt rating to CC/RR4 from CCC/RR4, and the foreign currency subordinated debt rating to C/RR6 from CCC-/RR6. |
· Covid-19: In early March 2020, the World Health Organization recognized Coronavirus (Covid-19) as a pandemic that is severely affecting almost all countries around the world. The spread of this disease globally has forced the authorities to take drastic health and financial measures to contain and mitigate its effects on health and economic activity. Particularly in the Argentine Republic, on March 19, 2020, through Decree No. 297/2020, the Government established the “social, preventive and compulsory isolation” measure until March 31, 2020, which was then extended until June 7, 2020. Along with health protection rules, tax and financial measures were taken to mitigate the impact on the economy associated with the pandemic, including public direct financial assistance measures for part of the population, the establishment of financial and fiscal facilities for both individuals and companies. As regards measures related to the Entity’s business, the BCRA established maturities extensions, froze the mortgage loan installments and encouraged banks to lend to companies at reduced rates. In addition, the distribution of dividends of the finance institutions was suspended until June 30, 2020. In addition, in the mandatory quarantine context, the BCRA ruled that financial institutions would not be able to open their branches for public service during that period and should continue to provide services to users remotely. They could also trade with each other and their clients in the exchange market remotely. During quarantine, remote trading of stock exchanges and capital markets authorized by the CNV, the custodians and capital market agents registered with the CNV was admitted. In view of the extension of mandatory quarantine, the BCRA then decided that financial institutions would open their branches from Friday, April 3, 2020 for public attention through previous appointments obtained by the Bank’s website. The Bank is developing its activities under the conditions detailed above, giving priority to the compliance of social isolation measures by its employees, with the primary objective of taking care of the public health and well-being of all its stakeholders (employees, suppliers, customers, among others). To this end, it has put in place contingency procedures and has enabled its staff to carry out their tasks remotely. From a commercial point of view, it has emphasized maintaining a close relationship with its customers, trying to respond to their needs at this difficult time, sustaining all virtual channels of care to ensure operability and good response to requirements, monitoring compliance with their business obligations and monitoring the active portfolio in order to detect possible delays in collection and set new conditions for them. Considering the size of the abovementioned situation, the Bank’s Management estimates that this situation could have an impact on its operations and the financial situation and the results of the Bank, which are under analysis, and will ultimately, depend on the extent an duration of the health emergency and the success of the measures taken and taken in the future.
19
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· Expected Credit Losses (E.C.L) I.F.R.S.9: The Bank records an allowance for expected credit losses for all loans and other debt financial assets not held at fair value through profit or loss, together with loan commitments and financial guarantee contracts, in this section all referred to as ‘financial instruments’. Equity instruments are not subject to impairment under IFRS 9. The ECL allowance is based on the credit losses expected to arise over the life of the asset (the lifetime expected credit loss), unless there has been no significant increase in credit risk since origination, in which case, the allowance is based on the 12 months expected credit loss (hereinafter, 12mECL). The Bank’s policies for determining if there has been a significant increase in credit risk are set out in note 51.1.1.6 in our 20-F. The 12mECL is the portion of the lifetime expected credit loss (hereinafter, LTECL) that represents the ECL that result from default events on a financial instrument that are possible within the 12 months after the reporting date. Both the LTECL and 12mECL are calculated on either an individual basis or a collective basis, depending on the nature of the underlying portfolio of financial instruments. The Bank’s policy for grouping financial assets measured on a collective basis is explained in note 51.1.1.1 in our 20-F. The Bank has established a policy to perform an assessment, at the end of each reporting period, of whether a financial instrument’s credit risk has increased significantly since initial recognition, by considering the change in the risk of default occurring over the remaining life of the financial instrument. This is further explained in note 51.1.1.6 in our 20-F Based on the above process, the Bank groups its loans into Stage 1, Stage 2, Stage 3 and Purchased or originated credit impaired (hereinafter, POCI), as described below:
| o | Stage 1: when financial instruments subject to impairment according to section 5.5 of IFRS 9 are first recognized, the Bank recognizes an allowance based on 12mECL. Stage 1 financial instruments also include facilities where the credit risk has improved and the financial instrument has been reclassified from Stage 2. |
| o | Stage 2: when a financial instrument has shown a significant increase in credit risk since origination, the Bank records an allowance for the LTECL. Stage 2 financial instruments also include facilities, where the credit risk has improved and the loan has been reclassified from Stage 3. |
| o | Stage 3: financial instruments considered credit-impaired. The Bank records an allowance for the LTECL. |
| o | POCI: financial instruments that are credit impaired on initial recognition. POCI assets are recorded at fair value at original recognition and interest income is subsequently recognized based on a credit-adjusted EIR. The ECL allowance is only recognized or released to the extent that there is a subsequent change in the expected credit losses. It is worthwhile to mention that the Bank has not purchased nor originated POCI financial instruments. |
For financial instruments for which the Bank has no reasonable expectations of recovering either the entire outstanding amount, or a proportion thereof, the gross carrying amount of the financial instrument is reduced.
20
| | |
Regulatory Changes
· Measures implemented to mitigate the economic impact of the COVID-19 pandemic.
| o | Closure of bank branches. On March 20, 2020, the Central Bank determined that bank branches in Argentina should remain closed. From April 3 until April 10, 2020, branches were allowed to open with limited hours, only for the attention of beneficiaries of pension schemes and certain retirement benefits and beneficiaries of aid programs funded by the ANSES. During this period, the rest of the banking activities were performed only through digital means. Beginning on April 13, 2020, financial entities have been allowed to reopen only for a limited number of services, and only by prior appointment, with teller services initially restricted to pensioners and social plan beneficiaries, provided that certain health and security requirements are complied with. Additionally, beginning on April 20, 2020, the Central Bank has allowed the provision of teller services exclusively for deposits in, and withdrawals from, foreign currency accounts. |
| o | Postponement of loan payments. The Central Bank postponed payments on loans maturing during the national lockdown period, and suspended the accrual of punitive interests on loans with maturity between April 1 and June 30, 2020. |
| o | ATM fees. The Central Bank determined that, until June 30, 2020, any operation effected through ATMs will not be subject to any charges or fees. |
| o | Mortgage loan installments and mortgage foreclosures. The government froze the monthly installments of mortgage loans over properties designated as the borrower’s only and permanent residence and prohibited mortgage foreclosures, until September 30, 2020. The debit balance resulting from the freezing of the installment increases may be refinanced in up to nine consecutive monthly installments, upon request by the borrower. |
| o | Credit card payments. The Central Bank determined that the unpaid balances of credit card financings due between April 13 and April 30, 2020 will be automatically refinanced in nine equal consecutive monthly installments beginning after a three-month grace period. Interest rates on such unpaid balances may not exceed an annual nominal rate of 43%. |
| o | Prohibition of bank account closures.The government prohibited the closure and disabling of bank accounts and the imposition of penalties until April 30, 2020. |
| o | Time deposits minimum rate. The Central Bank ruled that all non-adjustable time deposits under Ps.1 million made by individuals as of April 20, 2020 will have a minimum interest rate equivalent to the 70% of the average LELIQ’s tendering during the week prior to the date in which the deposit was made. |
| o | Family emergency income and extraordinary subsidies. The government established (i) a stipend of Ps.10,000, for the month of April 2020, for people who are unemployed or working informally, and self-employed workers who are not currently generating or receiving other income; and (ii) an extraordinary subsidy of Ps.3,000, for the month of April 2020, for beneficiaries of pension schemes and certain retirement benefits. |
| o | Prohibition of dismissals and suspensions. The government prohibited dismissals of employees until May 30, 2020. |
| o | Labor market emergency assistance program. The government created a fund of specific application within the FOGAR (acronym in Spanish for Fondo de Garantías Argentino), with the aim of backing financings provided to PyMEs by financial entities in order to pay salaries. |
· Easing of limitations on holding Central Bank notes. Simultaneously with the creation of the fund within the FOGAR, the Central Bank eased the limitations on banks’ holdings of notes from the Central Bank (LELIQ), in order to make liquidity available and encourage the provision of credit lines to PyMEs. More recently in May 2020 the Central Bank established that Banks could set up all reserve requirements from time deposits with Leliqs.
· Reserve requirements. The Central Bank established that the facilities granted at a preferential rate (not more than 24% per year) within the framework of Communication “A” 6937 to PyMEs and households may be deducted from reserve requirements, considering 130% of the amount when the proceeds are for the payment of salaries and the granting entity is the payment agent of those salaries.
· Distribution of Dividends by Financial Institutions. In March 2020 through Communication “A” 6939, the Central Bank of Argentina suspended, until June 30, 2020, the distribution of dividends by financial entities, including the Bank. Additionally on June 4, 2020 the Central Bank through Communication “A” 7035 extended the limitation to pay dividends until December 31, 2020.
· Classification of Debtors. The Central Bank established for regulatory purposes new rules regarding the criteria for debtor classification and provisioning until September 30, 2020. These rules provide an additional 60 days period of non-payment before a debtor is required to be reclassified, and include all financings to commercial portfolio clients and loans granted for consumption or housing purposes.
21
| |
| QUARTERLY BALANCE SHEET | MACRO Consolidated | Change | ||||||||||||||||||
| In MILLION $ (Measuring Unit Current at EOP) | 1Q19 | 4Q19 | 1Q20 | QoQ | YoY | |||||||||||||||
| ASSETS | ||||||||||||||||||||
| Cash and deposits in Banks | 111,725 | 108,533 | 123,321 | 14 | % | 10 | % | |||||||||||||
| Cash | 13,011 | 21,033 | 18,557 | -12 | % | 43 | % | |||||||||||||
| Central Bank of Argentina | 84,681 | 59,460 | 71,819 | 21 | % | -15 | % | |||||||||||||
| Other local & foreign entities | 14,029 | 28,035 | 32,940 | 17 | % | 135 | % | |||||||||||||
| Other | 4 | 5 | 5 | 0 | % | 25 | % | |||||||||||||
| Debt securities at fair value through profit & loss | 4,397 | 6,118 | 1,698 | -72 | % | -61 | % | |||||||||||||
| Derivatives | 62 | 55 | 41 | -25 | % | -34 | % | |||||||||||||
| Repo Transactions | - | 1,173 | 410 | -65 | % | - | ||||||||||||||
| Other financial assets | 6,377 | 6,645 | 12,194 | 84 | % | 91 | % | |||||||||||||
| Loans & other receivables | 264,070 | 238,127 | 225,110 | -5 | % | -15 | % | |||||||||||||
| Non Financial Public Sector | 1,935 | 6,954 | 4,204 | -40 | % | 117 | % | |||||||||||||
| Financial Sector | 5,668 | 4,260 | 2,776 | -35 | % | -51 | % | |||||||||||||
| Non Financial private sector and foreign | 256,467 | 226,913 | 218,130 | -4 | % | -15 | % | |||||||||||||
| Other debt securities | 161,780 | 69,594 | 97,282 | 40 | % | -40 | % | |||||||||||||
| Financial assets in guarantee | 10,830 | 11,506 | 10,000 | -13 | % | -8 | % | |||||||||||||
| Investments in equity instruments | 2,232 | 1,656 | 1,584 | -4 | % | -29 | % | |||||||||||||
| Investments in other companies (subsidiaries and joint ventures) | 184 | 158 | 168 | 6 | % | -9 | % | |||||||||||||
| Property, plant and equipment | 26,972 | 27,756 | 27,561 | -1 | % | 2 | % | |||||||||||||
| Intangible assets | 3,537 | 3,818 | 3,947 | 3 | % | 12 | % | |||||||||||||
| Deferred income tax assets | - | 47 | 57 | 21 | % | - | ||||||||||||||
| Other non financial assets | 1,952 | 1,167 | 1,460 | 25 | % | -25 | % | |||||||||||||
| Non-current assets held for sale | 1,958 | 1,888 | 1,949 | 3 | % | 0 | % | |||||||||||||
| TOTAL ASSETS | 596,076 | 478,241 | 506,782 | 6 | % | -15 | % | |||||||||||||
| LIABILITIES | ||||||||||||||||||||
| Deposits | 404,437 | 283,368 | 311,315 | 10 | % | -23 | % | |||||||||||||
| Non Financial Public Sector | 41,767 | 18,930 | 27,310 | 44 | % | -35 | % | |||||||||||||
| Financial Sector | 313 | 339 | 291 | -14 | % | -7 | % | |||||||||||||
| Non Financial private sector and foreign | 362,357 | 264,099 | 283,714 | 7 | % | -22 | % | |||||||||||||
| Derivatives | 164 | 829 | 160 | -81 | % | -2 | % | |||||||||||||
| Repo Transactions | - | 1,081 | - | -100 | % | - | ||||||||||||||
| Other financial liabilities | 24,661 | 23,899 | 23,485 | -2 | % | -5 | % | |||||||||||||
| Financing received from Central Bank and Other Financial Institutions | 4,616 | 2,421 | 865 | -64 | % | -81 | % | |||||||||||||
| Issued Corporate Bonds | 9,367 | 5,956 | 5,463 | -8 | % | -42 | % | |||||||||||||
| Current income tax liabilities | 6,776 | 8,771 | 10,291 | 17 | % | 52 | % | |||||||||||||
| Subordinated corporate bonds | 26,461 | 26,208 | 26,606 | 2 | % | 1 | % | |||||||||||||
| Provisions | 1,449 | 1,588 | 1,588 | 0 | % | 10 | % | |||||||||||||
| Deferred income tax liabilities | 4,836 | 175 | 4 | -98 | % | -100 | % | |||||||||||||
| Other non financial liabilities | 8,402 | 10,908 | 7,935 | -27 | % | -6 | % | |||||||||||||
| TOTAL LIABILITIES | 491,169 | 365,204 | 387,712 | 6 | % | -21 | % | |||||||||||||
| SHAREHOLDERS' EQUITY | ||||||||||||||||||||
| Capital Stock | 670 | 639 | 639 | 0 | % | -5 | % | |||||||||||||
| Issued Shares premium | 12,428 | 12,430 | 12,430 | 0 | % | 0 | % | |||||||||||||
| Adjustment to Shareholders' Equity | 37,145 | 37,119 | 37,119 | 0 | % | 0 | % | |||||||||||||
| Reserves | 36,476 | 59,210 | 59,210 | 0 | % | 62 | % | |||||||||||||
| Retained earnings | 14,381 | -17,466 | 3,498 | -120 | % | -76 | % | |||||||||||||
| Other accumulated comprehensive income | -123 | 140 | -901 | - | - | |||||||||||||||
| Net income for the period / fiscal year | 3,928 | 20,964 | 7,074 | -66 | % | 80 | % | |||||||||||||
| Shareholders' Equity attributable to parent company | 104,905 | 113,036 | 119,069 | 5 | % | 13 | % | |||||||||||||
| Shareholders' Equity attributable to non controlling interest | 2 | 1 | 1 | 0 | % | -50 | % | |||||||||||||
| TOTAL SHAREHOLDERS' EQUITY | 104,907 | 113,037 | 119,070 | 5 | % | 13 | % | |||||||||||||
22
| |
| INCOME STATEMENT | Change | |||||||||||||||||||
| In MILLION $ (Measuring Unit Current at EOP) | 1Q19 | 4Q19 | 1Q20 | QoQ | YoY | |||||||||||||||
| Interest Income | 37,717 | 36,892 | 30,910 | -16 | % | -18 | % | |||||||||||||
| Interest Expense | 17,756 | 11,365 | 9,608 | -15 | % | -46 | % | |||||||||||||
| Net Interest Income | 19,961 | 25,527 | 21,302 | -17 | % | 7 | % | |||||||||||||
| Fee income | 5,503 | 5,105 | 4,867 | -5 | % | -12 | % | |||||||||||||
| Fee expense | 373 | 489 | 436 | -11 | % | 17 | % | |||||||||||||
| Net Fee Income | 5,130 | 4,616 | 4,431 | -4 | % | -14 | % | |||||||||||||
| Subtotal (Net Interest Income + Net Fee Income) | 25,091 | 30,143 | 25,733 | -15 | % | 3 | % | |||||||||||||
| Net Income from financial instruments at Fair Value Through Profit & Loss | -8,103 | -279 | -4,093 | 1367 | % | -49 | % | |||||||||||||
| Result from assets at amortised cost | -27 | 60 | 853 | 1322 | % | -3259 | % | |||||||||||||
| Difference in quoted prices of gold and foreign currency | -44 | 1,472 | 532 | -64 | % | -1309 | % | |||||||||||||
| Other operating income | 4,798 | 1,011 | 1,099 | 9 | % | -77 | % | |||||||||||||
| Provision for loan losses | 1,577 | 1,565 | 861 | -45 | % | -45 | % | |||||||||||||
| Net Operating Income | 20,138 | 30,842 | 23,263 | -25 | % | 16 | % | |||||||||||||
| Personnel expenses | 4,852 | 5,588 | 4,726 | -15 | % | -3 | % | |||||||||||||
| Administrative expenses | 3,238 | 3,693 | 2,674 | -28 | % | -17 | % | |||||||||||||
| Depreciation and impairment of assets | 770 | 838 | 836 | 0 | % | 9 | % | |||||||||||||
| Other operating expense | 4,916 | 5,182 | 4,325 | -17 | % | -12 | % | |||||||||||||
| Operating Income | 6,362 | 15,541 | 10,702 | -31 | % | 68 | % | |||||||||||||
| Income from associates and joint ventures | 41 | 165 | 21 | -87 | % | -49 | % | |||||||||||||
| Result from net monetary position | 3,200 | -5,112 | 295 | -106 | % | -91 | % | |||||||||||||
| Net Income before income tax on cont. operations | 9,603 | 10,594 | 11,018 | 4 | % | 15 | % | |||||||||||||
| Income tax on continuing operations | 5,675 | 4,461 | 3,944 | -12 | % | -31 | % | |||||||||||||
| Net Income from continuing operations | 3,928 | 6,133 | 7,074 | 15 | % | 80 | % | |||||||||||||
| Net Income for the period | 3,928 | 6,133 | 7,074 | 15 | % | 80 | % | |||||||||||||
| Net Income of the period attributable to parent company | 3,928 | 6,132 | 7,074 | 15 | % | 80 | % | |||||||||||||
| Net income of the period attributable to non-controlling interests | - | 1 | - | -100 | % | - | ||||||||||||||
| Other Comprehensive Income | -28 | -50 | -1,041 | 1982 | % | 3618 | % | |||||||||||||
| Foreign currency translation differences in financial statements conversion | 61 | -151 | -7 | -95 | % | -111 | % | |||||||||||||
| Profits or losses from financial assets measured at fair value through other comprehensive income (FVOCI) (IFRS 9(4.1.2)(a) | -89 | 101 | -1,034 | - | 1062 | % | ||||||||||||||
| TOTAL COMPREHENSIVE INCOME FOR THE PERIOD | 3,900 | 6,083 | 6,033 | -1 | % | 55 | % | |||||||||||||
| Total Comprehensive Income attributable to parent Company | 3,900 | 6,082 | 6,033 | -1 | % | 55 | % | |||||||||||||
| Total Comprehensive Income attributable to non-controlling interests | - | 1 | - | -100 | % | - | ||||||||||||||
23
| | |
| QUARTERLY ANNUALIZED RATIOS | MACRO Consolidated | |||||||||||
| 1Q19 | 4Q19 | 1Q20 | ||||||||||
| Profitability & performance | ||||||||||||
| Net interest margin | 24.8 | % | 24.8 | % | 19.2 | % | ||||||
| Net interest margin adjusted (exc. FX) | 24.8 | % | 23.9 | % | 18.7 | % | ||||||
| Net fee income ratio | 19.7 | % | 10.6 | % | 14.3 | % | ||||||
| Efficiency ratio | 25.3 | % | 26.8 | % | 39.8 | % | ||||||
| Net fee income as % of A&G Expenses | 77.8 | % | 39.7 | % | 36.0 | % | ||||||
| Return on average assets | 3.3 | % | 3.8 | % | 4.9 | % | ||||||
| Return on average equity | 13.8 | % | 20.1 | % | 27.3 | % | ||||||
| Liquidity | ||||||||||||
| Loans as a percentage of total deposits | 65.3 | % | 84.0 | % | 72.3 | % | ||||||
| Liquid assets as a percentage of total deposits | 66.0 | % | 59.0 | % | 66.0 | % | ||||||
| Capital | ||||||||||||
| Total equity as a percentage of total assets | 17.6 | % | 23.6 | % | 23.5 | % | ||||||
| Regulatory capital as % of APR | 27.7 | % | 27.3 | % | 32.0 | % | ||||||
| Asset Quality | ||||||||||||
| Allowances over total loans | 2.3 | % | 2.3 | % | 2.5 | % | ||||||
| Non-performing financing as a percentage of total financing | 2.0 | % | 2.1 | % | 1.4 | % | ||||||
| Coverage ratio w/allowances | 111.9 | % | 106.1 | % | 173.5 | % | ||||||
| Cost of Risk | 2.9 | % | 1.8 | % | 1.3 | % | ||||||
| ACCUMULATED ANNUALIZED RATIOS | MACRO Consolidated | |||||||||||
| 1Q19 | 4Q19 | 1Q20 | ||||||||||
| Profitability & performance | ||||||||||||
| Net interest margin | 24.8 | % | 33.6 | % | 19.2 | % | ||||||
| Net interest margin adjusted (exc. FX) | 24.8 | % | 31.7 | % | 18.7 | % | ||||||
| Net fee income ratio | 19.7 | % | 6.3 | % | 14.3 | % | ||||||
| Efficiency ratio | 25.3 | % | 35.5 | % | 39.8 | % | ||||||
| Net fee income as % of A&G Expenses | 77.8 | % | 17.8 | % | 36.0 | % | ||||||
| Return on average assets | 3.3 | % | 5.2 | % | 4.9 | % | ||||||
| Return on average equity | 13.8 | % | 21.9 | % | 27.3 | % | ||||||
| Liquidity | ||||||||||||
| Loans as a percentage of total deposits | 65.3 | % | 84.0 | % | 72.3 | % | ||||||
| Liquid assets as a percentage of total deposits | 66.0 | % | 59.0 | % | 66.0 | % | ||||||
| Capital | ||||||||||||
| Total equity as a percentage of total assets | 17.6 | % | 23.6 | % | 23.5 | % | ||||||
| Regulatory capital as % of APR | 27.7 | % | 27.3 | % | 32.0 | % | ||||||
| Asset Quality | ||||||||||||
| Allowances over total loans | 2.3 | % | 2.3 | % | 2.5 | % | ||||||
| Non-performing financing as a percentage of total financing | 2.0 | % | 2.1 | % | 1.4 | % | ||||||
| Coverage ratio w/allowances | 111.9 | % | 106.1 | % | 173.5 | % | ||||||
| Cost of Risk | 2.9 | % | 2.6 | % | 1.3 | % | ||||||
24
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereto duly authorized.
Date: June 8, 2020
| MACRO BANK INC. | ||
| By: | /s/ Jorge Francisco Scarinci | |
| Name: | Jorge Francisco Scarinci | |
| Title: | Chief Financial Officer | |