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
November 30, 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 |
3Q20 Earnings Release |
Banco Macro Announces Results for the Third Quarter of 2020
Buenos Aires, Argentina, November 30, 2020 – Banco Macro S.A. (NYSE: BMA; BYMA: BMA) (“Banco Macro” or “BMA” or the “Bank”) announced today its results for the third quarter ended September 30, 2020 (“3Q20”). 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 September 30, 2020.
Summary
• The Bank’s net income totaled Ps.6.1 billion in 3Q20. This result was 12% lower than the result posted in 2Q20 and 33% lower than in 3Q19. In 3Q20, the accumulated annualized return on average equity (“ROAE”) and the accumulated annualized return on average assets (“ROAA”) were 21.5% and 4.6%, respectively.
• In 3Q20, Banco Macro’s financing to the private sector decreased 2% or Ps.3.9 billion quarter over quarter (“QoQ”) totaling Ps.232.2 billion and 12% or Ps.31.9 billion year over year (“YoY”). In the quarter consumer loans stood out, among which Credit card loans stood out; with a 8% increase QoQ, meanwhile within commercial loans Others stood out with a 7% increase QoQ, mainly driven by the 24% loans to SMEs.
• In 3Q20, Banco Macro’s total deposits increased 13% or Ps.55.6 billion QoQ, totaling Ps.493 billion and representing 83% of the Bank’s total liabilities. Private sector deposits increased 4% or Ps.14.2 billion QoQ.
• Banco Macro continued showing a strong solvency ratio, with an excess capital of Ps.116.9 billion, 34.8% regulatory capital ratio – Basel III and 27.3% Tier 1 Ratio. In addition, the Bank’s liquid assets remained at an adequate level, reaching 87% of its total deposits in 3Q20.
• In 3Q20, the Bank’s non-performing to total financing ratio was 1.14% and the coverage ratio improved to 302.9%.
3Q20 Earnings Release Conference Call
Tuesday, December 1, 2020
| 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 12/01/2020 through 12/15/2020 |
2
3Q20 Earnings Release |
Disclaimer
This press release includes forward-looking statements. We have based these forward-looking statements largely on our current beliefs, expectations and projections about future events and financial trends affecting our business. Many important factors could cause our actual results to differ substantially from those anticipated in our forward-looking statements, including, among other things: inflation; changes in interest rates and the cost of deposits; government regulation; adverse legal or regulatory disputes or proceedings; credit and other risks of lending, such as increases in defaults by borrowers; fluctuations and declines in the value of Argentine public debt; competition in banking and financial services; deterioration in regional and national business and economic conditions in Argentina; and fluctuations in the exchange rate of the peso.
The words “believe,” “may,” “will,” “aim,” “estimate,” “continue,” “anticipate,” “intend,” “expect” and similar words are intended to identify forward-looking statements. Forward-looking statements include information concerning our possible or assumed future results of operations, business strategies, financing plans, competitive position, industry environment, potential growth opportunities, the effects of future regulation and the effects of competition. Forward-looking statements speak only as of the date they were made, and we undertake no obligation to update publicly or to revise any forward-looking statements after we distribute this press release because of new information, future events or other factors. In light of the risks and uncertainties described above, the forward-looking events and circumstances discussed in this press release might not occur and are not guarantees of future performance.
This report is a summary analysis of Banco Macro's financial condition and results of operations as of and for the period indicated. For a correct interpretation, this report must be read in conjunction with all other material periodically filed with the Comisión Nacional de Valores (www.cnv.gob.ar), the Securities and Exchange Commission (www.sec.gov), Bolsas y mercados Argentinos (www.byma.com.ar) and the New York Stock Exchange (www.nyse.com). In addition, the Central Bank (www.bcra.gov.ar) may publish information related to Banco Macro as of a date subsequent to the last date for which the Bank has published information.
Readers of this report must note that this is a translation made from an original version written and expressed in Spanish. Consequently, any matters of interpretation should be referred to the original version in Spanish.
3
3Q20 Earnings Release |
This Earnings Release has been prepared in accordance with the accounting framework established by the Central Bank of Argentina (“BCRA”), based on International Financial Reporting Standards (“I.F.R.S.”) and the resolutions adopted by the International Accouting Standards Board (“I.A.S.B”) and by the Federación Argentina de Consejos Profesionales de Ciencias Económicas (“F.A.C.P.E.”). As of January 2020 the Bank started reporting with the application of (i) Expected losses of IFRS 9 “Financial Instruments” and (ii) IAS 29 “Financial Reporting in Hyperinflationary Economies”. Data and figures shown in this Earnings Release may differ from the ones shown in the 20-F annual report.
Results
Earnings per outstanding share were Ps.9.51 in 3Q20, 12% lower than 2Q20 and 33% lower than the result posted a year ago.
EARNINGS PER SHARE | MACRO Consolidated | Change | |||||||||||||||||||||
In MILLION $ (Measuring Unit Current at EOP) | 3Q19 | 4Q19 | 1Q20 | 2Q20 | 3Q20 | QoQ | YoY | ||||||||||||||||
Net income -Parent Company- (M $) | 9,112 | 6,956 | 8,025 | 6,885 | 6,076 | -12 | % | -33 | % | ||||||||||||||
Average # of shares outstanding (M) | 639 | 639 | 639 | 639 | 639 | 0 | % | 0 | % | ||||||||||||||
Average #of treasury stocks (shares repurchased) (M) | 19 | - | - | - | - | - | -100 | % | |||||||||||||||
Book value per avg. Outstanding share ($) | 184 | 201 | 211 | 201 | 210 | 4 | % | 14 | % | ||||||||||||||
Shares Outstanding (M) | 639 | 639 | 639 | 639 | 639 | 0 | % | 0 | % | ||||||||||||||
Earnings per avg. outstanding share ($) | 14.26 | 10.89 | 12.56 | 10.77 | 9.51 | -12 | % | -33 | % | ||||||||||||||
EOP FX (Pesos per USD) | 57.5583 | 59.8950 | 64.4700 | 70.4550 | 76.1750 | 8 | % | 32 | % | ||||||||||||||
Book value per avg. issued ADS (USD) | 31.97 | 33.56 | 32.73 | 28.53 | 27.57 | -3 | % | -14 | % | ||||||||||||||
Earnings per avg. outstanding ADS (USD) | 2.48 | 1.82 | 1.95 | 1.53 | 1.25 | -18 | % | -50 | % |
Banco Macro’s 3Q20 net income of Ps.6.1 billion was 12% or Ps.809 million lower than the previous quarter and 33% or Ps.3 billion lower YoY. This result represented an accumulated ROAE and ROAA of 21.5% and 4.6% respectively.
Net operating income (before G&A and personnel expenses) was Ps.19.6 billion in 3Q20, decreasing 18% or Ps.4.3 billion compared to 2Q20 and decreased 5% or Ps.1.1 billion compared to the previous year.
In 3Q20 Provision for loan losses totaled Ps.1.8 billion, 31% or Ps.774 million lower than in 2Q20. In the previous quarter loan loss provisions were explained by additional provisions made by the Bank based on estimations of the macroeconomic impact of the current Covid-19 pandemic. In this quarter three main groups showing signs of credit deterioration were included in the estimates; i) Ps.617 million related to loans with deferred installments (both commercial and consumer), ii) Ps.600 million related to refinancing of outstanding credit card balances and iii) Ps.531 million related to the 24% loans extended to SMEs, from sectors or activities which the Bank considered troubled o likely to have some trouble.
Operating income (after G&A and personnel expenses) was Ps.4.4 billion in 3Q20, 52% or Ps.4.8 billion lower than in 2Q20 and Ps.4.5 billion higher than a year ago.
It is important to emphasize that this result was obtained with a leverage of only 5.5x assets to equity ratio.
4
3Q20 Earnings Release |
INCOME STATEMENT | MACRO Consolidated | Change | ||||||||||||||||||||||||||
In MILLION $ (Measuring Unit Current at EOP) | 3Q19 | 4Q19 | 1Q20 | 2Q20 | 3Q20 | QoQ | YoY | |||||||||||||||||||||
Net Interest Income | 28,731 | 28,958 | 24,164 | 21,576 | 21,159 | -2 | % | -26 | % | |||||||||||||||||||
Net fee income | 5,395 | 5,237 | 5,027 | 5,004 | 5,271 | 5 | % | -2 | % | |||||||||||||||||||
Net Interest Income + Net Fee Income | 34,126 | 34,195 | 29,191 | 26,580 | 26,430 | -9 | % | -17 | % | |||||||||||||||||||
Net Income from financial instruments at fair value through P&L | -16,732 | -315 | -4,643 | -2,163 | -7,541 | 249 | % | -55 | % | |||||||||||||||||||
Income from assets at amortized cost | 0 | 66 | 967 | 20 | 61 | 205 | % | - | ||||||||||||||||||||
Differences in quoted prices of gold and foreign currency | 2,138 | 1,670 | 604 | 846 | 1,207 | 43 | % | -44 | % | |||||||||||||||||||
Other operating income | 1,510 | 1,147 | 1,247 | 1,145 | 1,182 | 3 | % | -22 | % | |||||||||||||||||||
Provision for loan losses | 393 | 1,776 | 977 | 2,523 | 1,749 | -31 | % | 345 | % | |||||||||||||||||||
Net Operating Income | 20,649 | 34,987 | 26,389 | 23,905 | 19,590 | -9 | % | 27 | % | |||||||||||||||||||
Employee benefits | 6,350 | 6,339 | 5,361 | 6,174 | 6,199 | 0 | % | -2 | % | |||||||||||||||||||
Administrative expenses | 4,153 | 4,190 | 3,034 | 3,126 | 3,400 | 9 | % | -18 | % | |||||||||||||||||||
Depreciation and impairment of assets | 956 | 950 | 948 | 992 | 1,015 | 2 | % | 6 | % | |||||||||||||||||||
Other operating expenses | 9,334 | 5,879 | 4,905 | 4,412 | 4,587 | 4 | % | -51 | % | |||||||||||||||||||
Operating Income | -144 | 17,629 | 12,141 | 9,201 | 4,389 | -24 | % | - | ||||||||||||||||||||
Result from associates & joint ventures | 24 | 9 | 15 | 67 | % | -38 | % | |||||||||||||||||||||
Result from net monetary postion | 8,185 | 32 | 23 | 479 | 4,836 | 910 | % | -41 | % | |||||||||||||||||||
Result before taxes from continuing operations | 8,065 | -5,644 | 335 | 9,689 | 9,240 | -22 | % | 20 | % | |||||||||||||||||||
Income tax | -1,047 | 12,017 | 12,499 | 2,804 | 3,164 | 13 | % | -402 | % | |||||||||||||||||||
Net income from continuing operations | 9,112 | 5,061 | 4,474 | 6,885 | 6,076 | -14 | % | 111 | % | |||||||||||||||||||
- | - | |||||||||||||||||||||||||||
Net Income of the period | 9,112 | 6,956 | 8,025 | 6,885 | 6,076 | -14 | % | 111 | % | |||||||||||||||||||
Net income of the period attributable to parent company | 9,112 | 6,956 | 8,025 | 6,885 | 6,076 | -12 | % | -33 | % | |||||||||||||||||||
Net income of the period attributable to minority interest | 0 | - | - | 0 | 0 | - | - |
The Bank’s 3Q20 net interest income totaled Ps.21.2 billion, 2% or Ps.417 million lower than in 2Q20 and 26% or Ps.7.6 billion lower YoY.
In 3Q20 interest income totaled Ps.36.8 billion, 15% or Ps.4.9 billion higher than in 2Q20 (due to higher income from securities) and 28% or Ps.14.3 billion lower than in 3Q19.
Income from interest on loans and other financing totaled Ps.17.8 billion, 9% or Ps.1.7 billion lower compared with the previous quarter, due to a 155 b.p. decrease in the average lending rate (down from 31.5% in 2Q20 to 30% in 3Q20), while the average volume of private sector loans decreased 5%. On a yearly basis Income from interest on loans decreased 23% or Ps.5.4 billion.
In 3Q20 income from government and private securities increased 56% or Ps.6 billion QoQ (due to higher income from Government securities) and increased 39% or Ps.11 billion compared with the same period of last year. This result is explained 90% by income from government and private securities through other comprehensive income (Central Bank Notes) and the remaining 10% is explained by income from government and private securities at amortized cost.
In 3Q20 income from Repos totaled Ps.2.1 billion, 33% or Ps.525 million higher than the previous quarter and Ps.2 billion higher than a year ago.
In 3Q20 FX income totaled a Ps.1.2 billion 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.457 million).
5
3Q20 Earnings Release |
FX INCOME | MACRO Consolidated | Variation | ||||||||||||||||||
In MILLION $ (Measuring Unit Current at EOP) | 3Q19 | 2Q20 | 3Q20 | QoQ | YoY | |||||||||||||||
(1) Differences in quoted prices of gold and foreign currency | 2,138 | 846 | 1,207 | 43 | % | -44 | % | |||||||||||||
Translation of FX assets and liabilities to Pesos | 481 | 683 | 750 | 10 | % | 56 | % | |||||||||||||
Income from foreign currency exchange | 1,656 | 162 | 457 | 181 | % | -72 | % | |||||||||||||
(2) Net Income from financial assets and liabilities at fair value through P&L | 1,062 | 20 | 2 | -90 | % | -100 | % | |||||||||||||
Income from investment in derivative financing instruments | 1,062 | 20 | 2 | -90 | % | -100 | % | |||||||||||||
(1) +(2) Total Result from Differences in quoted prices of gold and foreign currency | 3,200 | 866 | 1,209 | 40 | % | -62 | % |
INTEREST INCOME | MACRO Consolidated | Change | ||||||||||||||||||||||||||
In MILLION $ (Measuring Unit Current at EOP) | 3Q19 | 4Q19 | 1Q20 | 2Q20 | 3Q20 | QoQ | YoY | |||||||||||||||||||||
Interest on Cash and due from Banks | 125 | 84 | 69 | 15 | 29 | 93 | % | -77 | % | |||||||||||||||||||
Interest from government securities | 27,357 | 11,458 | 11,850 | 10,490 | 16,633 | 59 | % | -39 | % | |||||||||||||||||||
Interest from private securities | 520 | 1,223 | 662 | 373 | 264 | -29 | % | -49 | % | |||||||||||||||||||
Interest on loans and other financing | ||||||||||||||||||||||||||||
To the financial sector | 540 | 559 | 286 | 269 | 196 | -27 | % | -64 | % | |||||||||||||||||||
To the public non financial sector | 103 | 348 | 630 | 418 | 509 | 22 | % | 394 | % | |||||||||||||||||||
Interest on overdrafts | 4,783 | 8,856 | 4,608 | 3,081 | 1,443 | -53 | % | -70 | % | |||||||||||||||||||
Interest on documents | 1,383 | 1,599 | 1,444 | 983 | 796 | -19 | % | -42 | % | |||||||||||||||||||
Interest on mortgages loans | 2,114 | 2,844 | 2,039 | 1,605 | 1,552 | -3 | % | -27 | % | |||||||||||||||||||
Interest on pledged loans | 185 | 160 | 121 | 104 | 105 | 1 | % | -43 | % | |||||||||||||||||||
Interest on personal loans | 8,870 | 8,158 | 7,553 | 7,507 | 7,156 | -5 | % | -19 | % | |||||||||||||||||||
Interest on credit cards loans | 3,730 | 3,670 | 3,104 | 2,455 | 2,505 | 2 | % | -33 | % | |||||||||||||||||||
Interest on financial leases | 40 | 36 | 25 | 13 | 4 | -69 | % | -90 | % | |||||||||||||||||||
Interest on other loans | 1,363 | 2,005 | 2,261 | 2,979 | 3,494 | 17 | % | 156 | % | |||||||||||||||||||
Interest on Repos | ||||||||||||||||||||||||||||
From the BCRA | 0 | 480 | 365 | 1,578 | 2,094 | 33 | % | - | ||||||||||||||||||||
Other financial institutions | 11 | 411 | 47 | 1 | 10 | 900 | % | -9 | % | |||||||||||||||||||
Total Interest income | 51,124 | 41,891 | 35,064 | 31,871 | 36,790 | 15 | % | -28 | % | |||||||||||||||||||
Income from Interest on loans | 23,111 | 28,235 | 22,071 | 19,414 | 17,760 | -9 | % | -23 | % |
The Bank’s 3Q20 interest expense totaled Ps.15.6 billion, increasing 52% or Ps.5.3 billion compared to the previous quarter and decreasing 30% (Ps.6.8 billion) compared to 3Q19.
In 3Q20, interest on deposits represented 94% of the Bank’s total interest expense, increasing 58% or Ps.5.4 billion QoQ, due to a 300 b.p. increase in the average rate paid on deposits (up from 13.6% in 2Q20 to 16.6% in 3Q20, this increase can be traced to a 458 b.p QoQ increase in the average Badlar rate). The average volume of deposits from the private sector increased 13%. On a yearly basis, interest on deposits decreased 28% or Ps.5.8 billion.
6
3Q20 Earnings Release |
INTEREST EXPENSE | MACRO Consolidated | Change | ||||||||||||||||||||||||||
In MILLION $ (Measuring Unit Current at EOP) | 3Q19 | 4Q19 | 2Q20 | 2Q20 | 3Q20 | QoQ | YoY | |||||||||||||||||||||
Deposits | ||||||||||||||||||||||||||||
Interest on checking accounts | 152 | 34 | 136 | 120 | 424 | 253 | % | 179 | % | |||||||||||||||||||
Interest on saving accounts | 164 | 230 | 165 | 133 | 124 | -7 | % | -24 | % | |||||||||||||||||||
Interest on time deposits | 20,153 | 11,710 | 9,632 | 9,069 | 14,155 | 56 | % | -30 | % | |||||||||||||||||||
Interest on other financing from BCRA and financial inst. | 90 | 59 | 25 | 15 | 17 | 13 | % | -81 | % | |||||||||||||||||||
Repos | ||||||||||||||||||||||||||||
Other financial institutions | 77 | 40 | 74 | 22 | 2 | -91 | % | -97 | % | |||||||||||||||||||
Interest on corporate bonds | 1,136 | 247 | 323 | 386 | 348 | -10 | % | -69 | % | |||||||||||||||||||
Interest on subordinated bonds | 553 | 547 | 520 | 536 | 552 | 3 | % | 0 | % | |||||||||||||||||||
Interest on other financial liabilities | 68 | 66 | 25 | 14 | 9 | -36 | % | -87 | % | |||||||||||||||||||
Total financial expense | 22,393 | 12,933 | 10,900 | 10,295 | 15,631 | 52 | % | -30 | % | |||||||||||||||||||
Expenses from interest on deposits | 20,469 | 11,974 | 9,933 | 9,322 | 14,703 | 58 | % | -28 | % |
As of 3Q20, the Bank’s accumulated net interest margin (including FX) was 20.3%, lower than the 22.3% posted in 2Q20 and the 21.5% posted in 3Q19.
In 3Q20 Net Interest Margin (excluding FX) was 19.5%, lower than the 21.6% posted in 2Q20 and than the 20.8% posted in 3Q19.
In 3Q20 Net Interest Margin (Pesos) was 18.6%, lower than the 23% posted in 2Q20 and than the 34.3% in 3Q19; meanwhile Net Interest Margin (USD) was 1.8%, lower than the 2.3% posted in 2Q20 and higher than the 0.6% registered in 3Q19.
ASSETS & LIABILITIES PERFORMANCE (AR$) | MACRO Consolidated | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
In MILLION $ | 3Q19 | 4Q19 | 1Q20 | 2Q20 | 3Q20 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Measuring Unit Current at EOP) | AVERAGE | REAL INT | NOMINAL | AVERAGE | REAL INT | NOMINAL | AVERAGE | REAL INT | NOMINAL | AVERAGE | REAL INT | NOMINAL | AVERAGE | REAL INT | NOMINAL | |||||||||||||||||||||||||||||||||||||||||||||
Yields & rates in annualized nominal % | BALANCE | RATE | INT RATE | BALANCE | RATE | INT RATE | BALANCE | RATE | INT RATE | BALANCE | RATE | INT RATE | BALANCE | RATE | INT RATE | |||||||||||||||||||||||||||||||||||||||||||||
Interest-earning assets | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans & Other Financing | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Public Sector | 2,094 | -20.1 | % | 19.5 | % | 3,512 | -4.9 | % | 39.3 | % | 7,065 | 3.4 | % | 35.9 | % | 6,749 | 2.7 | % | 24.9 | % | 5,025 | 7.5 | % | 40.3 | % | |||||||||||||||||||||||||||||||||||
Financial Sector | 4,063 | 1.7 | % | 52.1 | % | 4,062 | 5.1 | % | 54.0 | % | 2,403 | 11.4 | % | 46.4 | % | 2,547 | 17.0 | % | 42.3 | % | 1,927 | 7.5 | % | 40.3 | % | |||||||||||||||||||||||||||||||||||
Private Sector | 170,025 | -0.1 | % | 49.4 | % | 212,840 | 1.2 | % | 48.2 | % | 191,320 | 7.6 | % | 41.4 | % | 199,761 | 11.3 | % | 35.4 | % | 201,621 | 1.0 | % | 31.8 | % | |||||||||||||||||||||||||||||||||||
Other debt securities | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Central Bank Securities (Leliqs) | 133,981 | 15.5 | % | 72.7 | % | 27,756 | 37.2 | % | 101.0 | % | 82,013 | 10.9 | % | 45.7 | % | 91,354 | 13.1 | % | 37.5 | % | 121,719 | 5.4 | % | 37.5 | % | |||||||||||||||||||||||||||||||||||
Government & Private Securities | 19,159 | 12.7 | % | 68.5 | % | 25,407 | 27.8 | % | 87.2 | % | 22,875 | 18.7 | % | 55.9 | % | 30,733 | 7.3 | % | 30.5 | % | 72,175 | -0.6 | % | 29.7 | % | |||||||||||||||||||||||||||||||||||
Repos | 46 | 30.3 | % | 94.9 | % | 4,372 | 23.5 | % | 80.9 | % | 3,786 | 9.5 | % | 43.8 | % | 36,760 | -3.5 | % | 17.3 | % | 43,732 | -8.7 | % | 19.1 | % | |||||||||||||||||||||||||||||||||||
Total interest-earning assets | 329,368 | 6.8 | % | 59.8 | % | 277,949 | 7.6 | % | 57.6 | % | 309,462 | 9.3 | % | 43.6 | % | 367,904 | 9.9 | % | 33.6 | % | 446,199 | 1.1 | % | 31.9 | % | |||||||||||||||||||||||||||||||||||
Non interest-earning assets | 71,723 | 112,387 | 102,340 | 110,445 | 69,832 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total Average Assets | 401,091 | 390,336 | 411,802 | 478,349 | 516,031 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest-bearing liabilities | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Deposits | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Public Sector | 17,422 | -8.6 | % | 36.7 | % | 9,775 | -5.1 | % | 39.0 | % | 13,159 | -4.6 | % | 25.3 | % | 19,698 | -0.3 | % | 21.3 | % | 52,140 | -4.3 | % | 24.8 | % | |||||||||||||||||||||||||||||||||||
Private Sector | 200,446 | -8.9 | % | 36.2 | % | 148,160 | -12.0 | % | 28.9 | % | 160,855 | -6.9 | % | 22.3 | % | 192,661 | -3.8 | % | 17.0 | % | 224,237 | -7.9 | % | 20.2 | % | |||||||||||||||||||||||||||||||||||
BCRA and other financial institutions | 697 | 1.9 | % | 52.4 | % | 266 | 32.4 | % | 94.0 | % | 390 | -4.2 | % | 25.8 | % | 427 | -3.8 | % | 17.0 | % | 408 | -7.6 | % | 20.5 | % | |||||||||||||||||||||||||||||||||||
Corporate bonds | 8,311 | 3.1 | % | 54.2 | % | 7,035 | -22.3 | % | 13.9 | % | 6,188 | -7.9 | % | 21.0 | % | 5,206 | 6.7 | % | 29.8 | % | 4,963 | -2.0 | % | 27.9 | % | |||||||||||||||||||||||||||||||||||
Repos | 488 | 8.7 | % | 62.6 | % | 317 | 2.5 | % | 50.1 | % | 1,305 | -6.1 | % | 23.4 | % | 939 | -10.0 | % | 9.4 | % | 49 | -10.9 | % | 16.2 | % | |||||||||||||||||||||||||||||||||||
Total int.-bearing liabilities | 227,364 | -8.4 | % | 37.0 | % | 165,553 | -11.9 | % | 29.0 | % | 181,897 | -6.8 | % | 22.5 | % | 218,931 | -3.2 | % | 17.7 | % | 281,797 | -7.1 | % | 21.2 | % | |||||||||||||||||||||||||||||||||||
Total non int.-bearing liabilities | 84,179 | 106,478 | 106,002 | 139,133 | 148,631 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total Average Liabilities | 311,543 | 272,031 | 287,899 | 358,064 | 430,428 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Assets Performance | 49,668 | 40,321 | 33,516 | 30,703 | 35,798 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Liabilities Performance | 21,195 | 12,103 | 10,188 | 9,620 | 14,983 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Interest Income | 28,473 | 28,218 | 23,328 | 21,083 | 20,815 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total interest-earning assets | 329,368 | 277,949 | 309,462 | 367,904 | 446,199 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Interest Margin (NIM) | 34.3 | % | 40.3 | % | 30.3 | % | 23.0 | % | 18.6 | % |
7
3Q20 Earnings Release |
ASSETS & LIABILITIES PERFORMANCE USD In MILLION $ | MACRO Consolidated | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Measuring Unit Current at EOP) | 3Q19 | 4Q19 | 1Q20 | 2Q20 | 3Q20 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Yields & rates in annualized | AVERAGE | REAL INT | NOMINAL | AVERAGE | REAL INT | NOMINAL | AVERAGE | REAL INT | NOMINAL | AVERAGE | REAL INT | NOMINAL | AVERAGE | REAL INT | NOMINAL | |||||||||||||||||||||||||||||||||||||||||||||
nominal % | BALANCE | RATE | INT RATE | BALANCE | RATE | INT RATE | BALANCE | RATE | INT RATE | BALANCE | RATE | INT RATE | BALANCE | RATE | INT RATE | |||||||||||||||||||||||||||||||||||||||||||||
Interest-earning assets | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash and Deposits in Banks | 84,692 | 62.3 | % | 0.6 | % | 33,313 | -20.0 | % | 1.0 | % | 34,930 | 0.3 | % | 0.8 | % | 43,510 | 13.0 | % | 0.1 | % | 44,600 | 1.7 | % | 0.3 | % | |||||||||||||||||||||||||||||||||||
Loans & Other Financing | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Public Sector | 0 | 0.0 | % | 0.0 | % | 0 | 0.0 | % | 0.0 | % | 0 | 0.0 | % | 0.0 | % | 0 | 0.0 | % | 0.0 | % | 0 | 0.0 | % | 0.0 | % | |||||||||||||||||||||||||||||||||||
Financial Sector | 399 | 71.0 | % | 6.0 | % | 385 | -15.8 | % | 6.2 | % | 522 | 6.4 | % | 6.9 | % | 68 | 19.6 | % | 5.9 | % | 56 | 8.6 | % | 7.1 | % | |||||||||||||||||||||||||||||||||||
Private Sector | 80,918 | 71.6 | % | 6.4 | % | 48,321 | -11.3 | % | 11.9 | % | 47,780 | 11.6 | % | 12.2 | % | 39,305 | 26.1 | % | 11.7 | % | 24,878 | 16.8 | % | 15.2 | % | |||||||||||||||||||||||||||||||||||
Other debt securities | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Government & Private Securities | 0 | 0.0 | % | 0.0 | % | 2,104 | -16.9 | % | 4.9 | % | 3,174 | 1.7 | % | 2.2 | % | 4,447 | 13.5 | % | 0.5 | % | 4,583 | 2.5 | % | 1.1 | % | |||||||||||||||||||||||||||||||||||
Total interest-earning assets | 166,009 | 66.9 | % | 3.5 | % | 84,123 | -14.9 | % | 7.4 | % | 86,406 | 6.7 | % | 7.2 | % | 87,330 | 19.0 | % | 5.4 | % | 74,117 | 6.8 | % | 5.3 | % | |||||||||||||||||||||||||||||||||||
Non interest-earning assets | 10,384 | 55,971 | 49,517 | 45,092 | 93,032 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total Average Assets | 176,393 | 140,094 | 135,923 | 132,422 | 167,149 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest-bearing liabilities | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Deposits | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Public Sector | 2,484 | 64.4 | % | 1.9 | % | 1,309 | -18.6 | % | 2.7 | % | 2,244 | 0.6 | % | 1.1 | % | 1,418 | 13.9 | % | 0.9 | % | 776 | 1.9 | % | 0.5 | % | |||||||||||||||||||||||||||||||||||
Private Sector | 104,037 | 64.8 | % | 2.2 | % | 65,184 | -19.6 | % | 1.4 | % | 64,143 | 0.5 | % | 1.0 | % | 51,370 | 14.1 | % | 1.0 | % | 50,346 | 2.1 | % | 0.7 | % | |||||||||||||||||||||||||||||||||||
BCRA and other financial institutions | 3,569 | 70.0 | % | 5.4 | % | 3,159 | -16.1 | % | 5.9 | % | 1,443 | 5.9 | % | 6.4 | % | 647 | 20.6 | % | 6.8 | % | 511 | 6.9 | % | 5.4 | % | |||||||||||||||||||||||||||||||||||
Subordinated bonds | 28,095 | 73.9 | % | 7.8 | % | 31,038 | -15.2 | % | 7.0 | % | 29,314 | 6.6 | % | 7.1 | % | 30,213 | 20.9 | % | 7.1 | % | 30,809 | 8.6 | % | 7.1 | % | |||||||||||||||||||||||||||||||||||
Total int.-bearing liabilities | 138,185 | 66.8 | % | 3.4 | % | 100,690 | -18.1 | % | 3.3 | % | 97,144 | 2.4 | % | 2.9 | % | 90,236 | 2.4 | % | 3.0 | % | 82,442 | 4.6 | % | 3.1 | % | |||||||||||||||||||||||||||||||||||
Total non int.-bearing liabilities | 32,532 | 31,385 | 31,258 | 40,153 | 39,213 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total Average liabilities | 170,717 | 132,075 | 128,402 | 123,801 | 121,655 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Assets Performance | 1,456 | 1,570 | 1,548 | 1,168 | 992 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Liabilities Performance | 1,198 | 830 | 712 | 675 | 650 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Interest Income | 258 | 740 | 836 | 493 | 342 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total interest-earning assets | 166,009 | 84,123 | 86,406 | 87,330 | 74,117 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Interest Margin (NIM) | 0.6 | % | 3.5 | % | 3.9 | % | 2.3 | % | 1.8 | % |
In 3Q20 Banco Macro’s net fee income totaled Ps.5.3 billion, 5% or Ps.267 million higher than in 2Q20 and 2% or Ps.124 million lower than the same period of last year.
In the quarter, fee income totaled Ps.5.7 billion, 6% or Ps.340 million higher than in 2Q20. Fees charged on deposit accounts, Corporate Services fees and ATM transaction fees stand out; with an 8% and 20% and 15% increase respectively QoQ. On a yearly basis, fee income decreased 4% or Ps.209 million.
In the quarter, total fee expense increased 19% or Ps.73 million. On a yearly basis, fee expenses decreased 15% or Ps.85 million.
NET FEE INCOME | MACRO Consolidated | Change | ||||||||||||||||||||||||||
In MILLION $ (Measuring Unit Current at EOP) | 3Q19 | 4Q19 | 1Q20 | 2Q20 | 3Q20 | QoQ | YoY | |||||||||||||||||||||
Fees charged on deposit accounts | 2,338 | 2,042 | 2,018 | 2,060 | 2,223 | 8 | % | -5 | % | |||||||||||||||||||
Credit card fees | 1,286 | 1,166 | 1,219 | 1,107 | 1,152 | 4 | % | -10 | % | |||||||||||||||||||
Corporate services fees | 709 | 686 | 611 | 460 | 551 | 20 | % | -22 | % | |||||||||||||||||||
ATM transactions fees | 326 | 498 | 459 | 445 | 512 | 15 | % | 57 | % | |||||||||||||||||||
Insurance fees | 331 | 336 | 350 | 361 | 359 | -1 | % | 8 | % | |||||||||||||||||||
Debit card fees | 319 | 291 | 286 | 323 | 349 | 8 | % | 9 | % | |||||||||||||||||||
Financial agent fees (Provinces) | 274 | 410 | 271 | 277 | 279 | 1 | % | 2 | % | |||||||||||||||||||
Credit related fees | 248 | 197 | 172 | 226 | 131 | -42 | % | -47 | % | |||||||||||||||||||
Mutual funds & securities fees | 72 | 79 | 96 | 109 | 151 | 39 | % | 110 | % | |||||||||||||||||||
AFIP & Collection services | 32 | 72 | 27 | 17 | 20 | 18 | % | -38 | % | |||||||||||||||||||
ANSES fees | 12 | 14 | 13 | 13 | 11 | -15 | % | -8 | % | |||||||||||||||||||
Total fee income | 5,947 | 5,791 | 5,522 | 5,398 | 5,738 | 6 | % | -4 | % | |||||||||||||||||||
Total fee expense | 552 | 554 | 495 | 394 | 467 | 19 | % | -15 | % | |||||||||||||||||||
Net fee income | 5,395 | 5,237 | 5,027 | 5,004 | 5,271 | 5 | % | -2 | % |
In 3Q20 Net Income from financial assets and liabilities at fair value through profit or loss totaled a Ps.7.5 billion loss, higher than the Ps.2.1 billion loss posted in the previous quarter. This loss can be traced to a higher loss related to sale of financial assets at fair value as a consequence of the inflation adjustment applied to our Leliq holdings (higher inflation was observed during 3Q20) which was partially offset by a Ps.422 million increase in profit from government securities.
8
3Q20 Earnings Release |
NET INCOME FROM FINANCIAL ASSETS AND LIABILITIES AT FAIR VALUE THROUGH PROFIT OR LOSS | MACRO Consolidated | Change | ||||||||||||||||||||||||||
In MILLION $ (Measuring Unit Current at EOP) | 3Q19 | 4Q19 | 1Q20 | 2Q20 | 3Q20 | QoQ | YoY | |||||||||||||||||||||
Profit or loss from government securities | -535 | 2,498 | 1,508 | 2,170 | 2,592 | 19 | % | - | ||||||||||||||||||||
Profit or loss from private securities | 189 | 337 | 257 | 111 | 273 | 146 | % | 44 | % | |||||||||||||||||||
Profit or loss from investment in derivative financing instruments | 1,062 | 292 | 41 | 20 | 2 | -90 | % | -100 | % | |||||||||||||||||||
Profit or loss from other financial assets | 14 | 64 | -7 | 12 | -4 | - | - | |||||||||||||||||||||
Profit or loss from investment in equity instruments | -14 | 17 | 103 | 87 | -107 | - | 664 | % | ||||||||||||||||||||
Profit or loss from the sale of financial assets at fair value | -17,448 | -3,523 | -6,545 | -4,563 | -10,297 | 126 | % | -41 | % | |||||||||||||||||||
Income from financial assets at fair value through profit or loss | -16,732 | -315 | -4,643 | -2,163 | -7,541 | 249 | % | -55 | % | |||||||||||||||||||
Profit or loss from derivative financing instruments | 0 | 0 | 0 | 0 | 0 | - | - | |||||||||||||||||||||
Income from financial liabilities at fair value through profit or loss | 0 | 0 | 0 | 0 | 0 | - | - | |||||||||||||||||||||
NET INCOME FROM FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS | -16,732 | -315 | -4,643 | -2,163 | -7,541 | 249 | % | -55 | % |
In the quarter Other Operating Income totaled Ps.1.2 billion, 3% or Ps.37 million higher than in 2Q20. On a yearly basis Other Operating Income decreased 22% or Ps.328.
OTHER OPERATING INCOME | MACRO Consolidated | Change | ||||||||||||||||||||||||||
In MILLION $ (Measuring Unit Current at EOP) | 3Q19 | 4Q19 | 1Q20 | 2Q20 | 3Q20 | QoQ | YoY | |||||||||||||||||||||
Credit and debit cards | 63 | 55 | 28 | 18 | 28 | 56 | % | -56 | % | |||||||||||||||||||
Lease of safe deposit boxes | 132 | 141 | 152 | 178 | 194 | 9 | % | 47 | % | |||||||||||||||||||
Other service related fees | 453 | 340 | 547 | 390 | 436 | 12 | % | -4 | % | |||||||||||||||||||
Other adjustments and interest from other receivables | 234 | 233 | 229 | 184 | 188 | 2 | % | -20 | % | |||||||||||||||||||
Initial recognition of loans | -12 | 45 | 0 | 19 | -12 | - | 0 | % | ||||||||||||||||||||
Sale of property, plant and equipment | 0 | 0 | 0 | 0 | 6 | - | - | |||||||||||||||||||||
Others | 640 | 333 | 291 | 356 | 342 | -4 | % | -47 | % | |||||||||||||||||||
Other Operating Income | 1,201 | 1,147 | 1,247 | 1,158 | 1,064 | -8 | % | -11 | % |
In 3Q20 Banco Macro’s administrative expenses plus employee benefits totaled Ps.9.6 billion, 3% or Ps.299 million higher than the previous quarter, due to higher administrative expenses (9%). On a yearly basis administrative expenses plus employee benefits decreased 9% or Ps.904 million.
Employee benefits increased Ps.25 million QoQ (remunerations and social security contributions were 1% lower but were offset by higher compensation a bonuses and employee services which increased 11% and 49% respectively QoQ). On a yearly basis Employee benefits decreased 2% or Ps.151 million.
In 3Q20 administrative expenses increased 9% or Ps.274 million, due to higher other administrative expenses (38% or Ps.329 million) related to legal expenses which were partially offset by lower (14% or Ps.44 million) Directors and auditors fees.
In 3Q20, the efficiency ratio reached 45.9%, deteriorating from the 41.6% posted in 2Q20. In 3Q20 expenses (employee benefits + G&A expenses + depreciation and impairment of assets) increased 3%, 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 22% compared to 2Q20.
9
3Q20 Earnings Release |
If we had excluded from the efficiency ratio calculation the inflation adjustment on our Leliqs holding (as per Central Bank rules shown under profit/loss from financial instruments at fair value through P&L), efficiency ratio would have been 34.7% in 3Q20 and 33.7% in 2Q20
PERSONNEL & ADMINISTRATIVE EXPENSES | MACRO Consolidated | Change | ||||||||||||||||||||||||||
In MILLION $ (Measuring Unit Current at EOP) | 3Q19 | 4Q19 | 1Q20 | 2Q20 | 3Q20 | QoQ | YoY | |||||||||||||||||||||
Employee benefits | 6,350 | 6,339 | 5,361 | 6,174 | 6,199 | 0 | % | -2 | % | |||||||||||||||||||
Remunerations | 4,536 | 4,601 | 3,951 | 4,667 | 4,617 | -1 | % | 2 | % | |||||||||||||||||||
Social Security Contributions | 961 | 1,043 | 878 | 1,039 | 1,024 | -1 | % | 7 | % | |||||||||||||||||||
Compensation and bonuses | 691 | 527 | 414 | 370 | 412 | 11 | % | -40 | % | |||||||||||||||||||
Employee services | 162 | 168 | 118 | 98 | 146 | 49 | % | -10 | % | |||||||||||||||||||
Administrative Expenses | 4,153 | 4,190 | 3,034 | 3,126 | 3,400 | 9 | % | -18 | % | |||||||||||||||||||
Taxes | 464 | 450 | 436 | 392 | 405 | 3 | % | -13 | % | |||||||||||||||||||
Maintenance, conservation fees | 480 | 626 | 460 | 493 | 508 | 3 | % | 6 | % | |||||||||||||||||||
Directors & statutory auditors fees | 790 | 717 | 344 | 308 | 264 | -14 | % | -67 | % | |||||||||||||||||||
Security services | 363 | 364 | 333 | 323 | 310 | -4 | % | -15 | % | |||||||||||||||||||
Electricity & Communications | 348 | 366 | 353 | 352 | 341 | -3 | % | -2 | % | |||||||||||||||||||
Other professional fees | 313 | 323 | 208 | 194 | 205 | 6 | % | -35 | % | |||||||||||||||||||
Rental agreements | 55 | 52 | 26 | 29 | 10 | -66 | % | -82 | % | |||||||||||||||||||
Advertising & publicity | 149 | 195 | 66 | 88 | 75 | -15 | % | -50 | % | |||||||||||||||||||
Personnel allowances | 62 | 59 | 38 | 23 | 25 | 9 | % | -60 | % | |||||||||||||||||||
Stationary & Office Supplies | 39 | 25 | 22 | 20 | 21 | 5 | % | -46 | % | |||||||||||||||||||
Insurance | 39 | 38 | 29 | 41 | 42 | 2 | % | 8 | % | |||||||||||||||||||
Hired administrative services | 3 | 0 | 1 | 0 | 2 | - | -33 | % | ||||||||||||||||||||
Other | 1,048 | 975 | 718 | 863 | 1,192 | 38 | % | 14 | % | |||||||||||||||||||
Total Administrative Expenses | 10,503 | 10,529 | 8,395 | 9,300 | 9,599 | 3 | % | -9 | % | |||||||||||||||||||
Total Employees | 8,843 | 8,768 | 8,732 | 8,706 | 8,651 | |||||||||||||||||||||||
Branches | 462 | 463 | 463 | 463 | 463 | |||||||||||||||||||||||
Efficiency ratio | 64.3 | % | 34.5 | % | 39.8 | % | 43.3 | % | 57.1 | % | ||||||||||||||||||
Accumulated efficiency ratio | 60.3 | % | 50.7 | % | 39.8 | % | 41.6 | % | 45.9 | % |
In 3Q20, Other Operating Expenses totaled Ps.4.6 billion, increasing 4% or Ps.175 million QoQ. Others and Other provision charges stand out with a 9% (Ps.132 million) increase and a 25% (Ps.52 million) increase respectively QoQ. On a yearly basis Other Operating Expenses decreased 51% or Ps.4.7 billion.
OTHER OPERATING EXPENSES | MACRO Consolidated | Change | ||||||||||||||||||||||||||
In MILLION $ (Measuring Unit Current at EOP) | 3Q19 | 4Q19 | 1Q20 | 2Q20 | 3Q20 | QoQ | YoY | |||||||||||||||||||||
Turnover Tax | 3,034 | 3,325 | 2,773 | 2,506 | 2,493 | -1 | % | -18 | % | |||||||||||||||||||
Other provision charges | 660 | 389 | 341 | 210 | 262 | 25 | % | -60 | % | |||||||||||||||||||
Deposit Guarantee Fund Contributions | 194 | 141 | 137 | 155 | 184 | 19 | % | -5 | % | |||||||||||||||||||
Donations | 52 | 170 | 123 | 24 | 0 | -100 | % | -100 | % | |||||||||||||||||||
Insurance claims | 19 | 19 | 17 | 17 | 13 | -24 | % | -32 | % | |||||||||||||||||||
Initial loan recognition | 0 | 0 | 3 | -3 | 0 | - | - | |||||||||||||||||||||
Others | 5,375 | 1,834 | 1,511 | 1,503 | 1,635 | 9 | % | -70 | % | |||||||||||||||||||
Other Operating Expenses | 9,334 | 5,879 | 4,905 | 4,412 | 4,587 | 4 | % | -51 | % |
In 3Q20 the result from the net monetary position (excluding Leliqs) totaled a Ps.4.8 million gain, Ps.4.4 billion higher than the Ps.479 million gain posted in 2Q20. This result is explained by the breakdown of monetary assets and monetary liabilities and their behavior during the quarter; an increase in monetary assets (loans, and government securities) and a bigger increase in monetary liabilities (deposits), and higher inflation observed during the quarter (228 b.p. above 2Q20 level, up from 5.37% to 7.65%) generating a positive result. If we include the inflation adjustment on our Leliqs holdings (a Ps.8.3 billion loss) the total result from the monetary position (including Leliqs) would be a Ps.3.4 billion loss, lower than the Ps.3.8 billion loss posted in 2Q20. On a yearly basis result from net monetary position (exc. Leliqs) decreased 41% or Ps.3.4 billion.
10
3Q20 Earnings Release |
In 3Q20 Banco Macro's effective income tax rate 34.2%, higher than the 28.9% effective tax rate of 2Q20.
RESULT FROM NET MONETARY POSITION | BANCO MACRO | |||||||||||
In MILLION $ (Measuring Unit Current at EOP) | 1Q20 | 2Q20 | 3Q20 | |||||||||
Result from Net Monetary Position (Consolidated) | 335 | 479 | 4,836 | |||||||||
Change in Consumer Price Index | 7.7995 | % | 5.3746 | % | 7.6549 | % | ||||||
RECPPC MONETARY ASSETS & LIABILITIES (*) | ||||||||||||
Monetary Assets (MA) | ||||||||||||
Cash and deposits in banks | -8,281 | -6,212 | -8,093 | |||||||||
Government and private securities | -1,805 | -1,221 | -2,745 | |||||||||
Loans | -18,718 | -13,048 | -17,367 | |||||||||
Other financial assets | -871 | -2,544 | -5,479 | |||||||||
Other receivables | -629 | -425 | -636 | |||||||||
Investment in other companies | -33 | |||||||||||
Others | -43 | -30 | ||||||||||
Total RECPPC Monetary Assets | -30,346 | -23,480 | -34,353 | |||||||||
Monetary Liabilities (ML) | ||||||||||||
Deposits | 24,452 | 19,249 | 32,300 | |||||||||
Other financial liabilities | 2,391 | 1,546 | 2,250 | |||||||||
Other liabilities | 1,554 | 1,511 | 2,286 | |||||||||
Subordinated Corporte Bonds | 2,205 | 1,586 | 2,272 | |||||||||
Others | 10 | 11 | 18 | |||||||||
Provisions | 135 | 93 | 126 | |||||||||
Total RECPPC Monetary Liabilities | 30,747 | 23,995 | 39,252 | |||||||||
Result from Net Monetary Position | 401 | 516 | 4,899 | |||||||||
RECPPC Leliqs | -6,389 | -4,274 | -8,327 | |||||||||
Result from Net Monetary Position (inc. Leliqs) | -5,988 | -3,758 | -3,428 | |||||||||
RECPPC: Result from changes in purchasing power of currency | ||||||||||||
(*)Banco Macro, not consolidated |
Financial Assets
Private sector financing
The volume of “core” financing to the private sector (including loans, financial trust and leasing portfolio) totaled Ps.232.2 billion, decreasing 2% or Ps.3.9 billion QoQ and 12% or Ps.31.9 billion YoY.
Within commercial loans, Others stand out with a 7% or Ps.2.8 billion increase QoQ (mostly due to loans extended to SMEs at a 24% interest rate, as part of the relief package given the Covid-19 pandemic); meanwhile Overdrafts decreased 22% or Ps.4.9 billion.
Within consumer lending credit card loans increased 8% or Ps.3.7 billion QoQ.
Within private sector financing, peso financing increased 2% or Ps.4.7million, while US dollar financing decreased 32% or USD 147 million.
As of 3Q20, Banco Macro´s market share over private sector loans was 7.6%.
11
3Q20 Earnings Release |
FINANCING TO THE PRIVATE SECTOR | MACRO Consilidated | Change | ||||||||||||||||||||||||||
In MILLION $ (Measuring Unit Current at EOP) | 3Q19 | 4Q19 | 1Q20 | 2Q20 | 3Q20 | QoQ | YoY | |||||||||||||||||||||
Overdrafts | 38,433 | 45,416 | 36,483 | 22,040 | 17,189 | -22 | % | -55 | % | |||||||||||||||||||
Discounted documents | 29,605 | 24,038 | 25,986 | 23,523 | 21,361 | -9 | % | -28 | % | |||||||||||||||||||
Mortgage loans | 17,685 | 15,579 | 14,475 | 13,962 | 13,652 | -2 | % | -23 | % | |||||||||||||||||||
Pledged loans | 6,159 | 4,900 | 4,223 | 3,971 | 3,618 | -9 | % | -41 | % | |||||||||||||||||||
Personal loans | 76,781 | 67,978 | 65,341 | 62,186 | 60,610 | -3 | % | -21 | % | |||||||||||||||||||
Credit Card loans | 45,233 | 51,553 | 50,239 | 48,941 | 52,618 | 8 | % | 16 | % | |||||||||||||||||||
Others | 32,933 | 27,694 | 31,630 | 41,268 | 44,099 | 7 | % | 34 | % | |||||||||||||||||||
Interest | 13,848 | 18,921 | 17,760 | 18,139 | 17,360 | -4 | % | 25 | % | |||||||||||||||||||
Total loan portfolio | 260,677 | 256,079 | 246,137 | 234,030 | 230,507 | -2 | % | -12 | % | |||||||||||||||||||
Total loans in Pesos | 186,975 | 210,117 | 201,850 | 203,155 | 208,098 | 2 | % | 11 | % | |||||||||||||||||||
Total loans in USD | 73,702 | 45,962 | 44,287 | 30,875 | 22,409 | -27 | % | -70 | % | |||||||||||||||||||
Financial trusts | 1,873 | 2,369 | 1,874 | 901 | 364 | -60 | % | -81 | % | |||||||||||||||||||
Leasing | 399 | 281 | 223 | 167 | 133 | -20 | % | -67 | % | |||||||||||||||||||
Others | 1,151 | 1,052 | 1,087 | 1,048 | 1,243 | 19 | % | 8 | % | |||||||||||||||||||
Total other financing | 3,423 | 3,702 | 3,184 | 2,116 | 1,740 | -18 | % | -49 | % | |||||||||||||||||||
Total other financing in Pesos | 2,050 | 2,441 | 2,090 | 1,029 | 798 | -22 | % | -61 | % | |||||||||||||||||||
Total other financing in USD | 1,373 | 1,261 | 1,094 | 1,087 | 942 | -13 | % | -31 | % | |||||||||||||||||||
Total financing to the private sector | 264,100 | 259,781 | 249,321 | 236,146 | 232,247 | -2 | % | -12 | % | |||||||||||||||||||
EOP FX (Pesos per USD) | 57.5583 | 59.8950 | 64.4697 | 70.4550 | 76.1750 | 8 | % | 32 | % | |||||||||||||||||||
USD financing / Financing to the private sector | 28 | % | 18 | % | 18 | % | 14 | % | 10 | % |
Public Sector Assets
In 3Q20, the Bank’s public sector assets (excluding LELIQs) to total assets ratio was 17.7%, higher than the 9.3% registered in the previous quarter, and higher than the 4.8% posted in 3Q19.
In 3Q20, a 124% or Ps.69.5 billion increase in Government Securities stands out, also in the quarter Leliqs increased 11% or Ps.13 billion. Since 2Q20 the Bank decided to invest in CER adjustable bonds and Badlar bonds.
PUBLIC SECTOR ASSETS | MACRO Consolidated | Change | ||||||||||||||||||||||||||
In MILLION $ (Measuring Unit Current at EOP) | 3Q19 | 4Q19 | 1Q20 | 2Q20 | 3Q20 | QoQ | YoY | |||||||||||||||||||||
Leliqs | 76,396 | 56,170 | 81,045 | 113,478 | 126,435 | 11 | % | 65 | % | |||||||||||||||||||
Other | 26,430 | 26,073 | 23,883 | 55,962 | 125,441 | 124 | % | 375 | % | |||||||||||||||||||
Government securities | 102,826 | 82,243 | 104,928 | 169,440 | 251,876 | 49 | % | 145 | % | |||||||||||||||||||
Provincial loans | 464 | 7,717 | 4,585 | 6,809 | 3,889 | -43 | % | 738 | % | |||||||||||||||||||
Loans | 464 | 7,717 | 4,585 | 6,809 | 3,889 | -43 | % | 738 | % | |||||||||||||||||||
Purchase of government bonds | 150 | 139 | 137 | 140 | 139 | -1 | % | -8 | % | |||||||||||||||||||
Other receivables | 150 | 139 | 137 | 140 | 139 | -1 | % | -8 | % | |||||||||||||||||||
TOTAL PUBLIC SECTOR ASSETS | 103,440 | 90,099 | 109,650 | 176,389 | 255,904 | 45 | % | 147 | % | |||||||||||||||||||
TOTAL PUBLIC SECTOR ASSETS (net of LEBAC/NOBAC/LELIQ) | 27,044 | 33,929 | 28,605 | 62,911 | 129,469 | 106 | % | 379 | % | |||||||||||||||||||
TOTAL PUBLIC SECTOR ASSETS (net of LEBAC/NOBAC/LELIQ)/TOTAL ASSETS | 4.8 | % | 6.3 | % | 5.0 | % | 9.3 | % | 17.7 | % |
12
3Q20 Earnings Release |
Funding
Deposits
Banco Macro’s deposit base totaled Ps.493 billion in 3Q20, increasing 13% or Ps.55.6 billion QoQ and 39% or Ps.138.6 billion increase YoY and representing 83% of the Bank’s total liabilities.
On a quarterly basis, both public and private sector deposits increased with a 64% or Ps.41.4 billion increase and a 4% or Ps.14.2 billion increase respectively.
The increase in private sector deposits was led by time deposits, which increased 17% or Ps.29.4 billion, while demand deposits decreased 6% or Ps.11.8 billion QoQ.
Within private sector deposits, peso deposits increased 6% or Ps.17.2 billion, while US dollar deposits decreased 11% or USD 124 million.
As of 3Q20, Banco Macro´s market share over private sector deposits was 6.6%.
DEPOSITS | MACRO Consolidated | Change | ||||||||||||||||||||||||||
In MILLION $ (Measuring Unit Current at EOP) | 3Q19 | 4Q19 | 1Q20 | 2Q20 | 3Q20 | QoQ | YoY | |||||||||||||||||||||
Public sector | 27,799 | 21,474 | 30,980 | 64,237 | 105,636 | 64 | % | 280 | % | |||||||||||||||||||
Financial sector | 400 | 384 | 330 | 376 | 441 | 17 | % | 10 | % | |||||||||||||||||||
Private sector | 325,921 | 299,597 | 321,849 | 372,483 | 386,633 | 4 | % | 19 | % | |||||||||||||||||||
Checking accounts | 47,979 | 49,067 | 60,901 | 76,862 | 71,707 | -7 | % | 49 | % | |||||||||||||||||||
Savings accounts | 105,464 | 110,950 | 108,280 | 114,390 | 107,751 | -6 | % | 2 | % | |||||||||||||||||||
Time deposits | 162,960 | 129,710 | 144,396 | 169,744 | 199,177 | 17 | % | 22 | % | |||||||||||||||||||
Other | 9,518 | 9,870 | 8,272 | 11,487 | 7,998 | -30 | % | -16 | % | |||||||||||||||||||
Total | 354,120 | 321,455 | 353,159 | 437,096 | 492,710 | 13 | % | 39 | % | |||||||||||||||||||
Pesos | 244,335 | 224,013 | 264,787 | 354,311 | 413,952 | 17 | % | 69 | % | |||||||||||||||||||
Foreign Currency (Pesos) | 109,785 | 97,442 | 88,372 | 82,785 | 78,758 | -5 | % | -28 | % | |||||||||||||||||||
EOP FX (Pesos per USD) | 57.5583 | 59.8950 | 64.4697 | 70.4550 | 76.1750 | 8 | % | 32 | % | |||||||||||||||||||
Foreign Currency (USD) | 1,907 | 1,627 | 1,371 | 1,175 | 1,034 | -12 | % | -46 | % | |||||||||||||||||||
USD Deposits / Total Deposits | 31 | % | 30 | % | 25 | % | 19 | % | 16 | % |
Banco Macro’s transactional deposits represent approximately 44% of its total deposit base as of 3Q20. These accounts are low cost and are not sensitive to interest rate increases.
Other sources of funds
In 3Q20, the total amount of other sources of funds increased 3% or Ps.5.6 billion compared to 2Q20. On a yearly basis other sources of funds increased 3% or Ps.4.6 billion. In 2Q20 Shareholder’s Equity increased 4% or Ps.5.6; also in the quarter subordinated corporate bonds increased 2% or Ps.648 due to the argentine peso depreciation.
OTHER SOURCES OF FUNDS | MACRO Consolidated | Change | ||||||||||||||||||||||||||
In MILLION $ (Measuring Unit Current at EOP) | 3Q19 | 4Q19 | 1Q20 | 2Q20 | 3Q20 | QoQ | YoY | |||||||||||||||||||||
Central Bank of Argentina | 42 | 33 | 18 | 20 | 19 | -5 | % | -55 | % | |||||||||||||||||||
Banks and international institutions | 3,635 | 2,247 | 589 | 591 | 402 | -32 | % | -89 | % | |||||||||||||||||||
Financing received from Argentine financial institutions | 891 | 465 | 372 | 540 | 266 | -51 | % | -70 | % | |||||||||||||||||||
Subordinated corporate bonds | 32,415 | 29,730 | 30,182 | 30,846 | 31,530 | 2 | % | -3 | % | |||||||||||||||||||
Corporate bonds | 8,208 | 6,757 | 6,197 | 5,220 | 5,019 | -4 | % | -39 | % | |||||||||||||||||||
Shareholders' equity | 121,326 | 128,229 | 135,073 | 128,325 | 133,922 | 4 | % | 10 | % | |||||||||||||||||||
Total other source of funds | 166,517 | 167,461 | 172,431 | 165,542 | 171,158 | 3 | % | 3 | % |
13
3Q20 Earnings Release |
Liquid Assets
In 3Q20, the Bank’s liquid assets amounted to Ps.429.9 billion, showing a 17% or Ps.63.8 billion increase QoQ, and a 79% or Ps.189.5 billion increase on a yearly basis.
In 3Q20, LELIQs own portfolio increased 11% or Ps.13 billion. Other government & private securities increased 124% or Ps.69.5 billion.
In 3Q20 Banco Macro’s liquid assets to total deposits ratio reached 87%.
LIQUID ASSETS | MACRO Consolidated | Change | ||||||||||||||||||||||||||
In MILLION $ (Measuring Unit Current at EOP) | 3Q19 | 4Q19 | 1Q20 | 2Q20 | 3Q20 | QoQ | YoY | |||||||||||||||||||||
Cash | 131,988 | 123,121 | 139,896 | 111,850 | 112,934 | 1 | % | -14 | % | |||||||||||||||||||
Guarantees for compensating chambers | 9,703 | 9,097 | 9,868 | 12,146 | 10,929 | -10 | % | 13 | % | |||||||||||||||||||
Call | 205 | 122 | 681 | 0 | 150 | - | -27 | % | ||||||||||||||||||||
Leliq own portfolio | 75,002 | 56,170 | 81,045 | 113,478 | 126,435 | 11 | % | 69 | % | |||||||||||||||||||
Net Repos | -2,961 | 104 | 465 | 72,635 | 53,971 | -26 | % | - | ||||||||||||||||||||
Other government & private securities | 26,430 | 26,073 | 23,883 | 55,962 | 125,441 | 124 | % | 375 | % | |||||||||||||||||||
Total | 240,367 | 214,687 | 255,838 | 366,071 | 429,860 | 17 | % | 79 | % | |||||||||||||||||||
Liquid assets to total deposits | 68 | % | 67 | % | 72 | % | �� | 84 | % | 87 | % |
Solvency
Banco Macro continued showing high solvency levels in 3Q20 with an integrated capital (RPC) of Ps.152.6 billion over a total capital requirement of Ps.35.7 billion. Banco Macro’s excess capital in 3Q20 was 327% or Ps.116.9 billion. Since the beginning of 2020 and due to inflation adjustments Equity has increased significantly leading to higher solvency levels (shown under Ordinary Capital Level 1).
The regulatory capital ratio (as a percentage of risk-weighted assets- RWA) was 34.8% in 3Q20; TIER1 Ratio stood at 27.3%.
The Bank’s aim is to make the best use of this excess capital.
MINIMUM CAPITAL REQUIREMENT | MACRO Consolidated | Change | ||||||||||||||||||||||||||
In MILLION $ | 3Q19(¹) | 4Q19(¹) | 1Q20(²) | 2Q20(²) | 3Q20(²) | QoQ | YoY | |||||||||||||||||||||
Credit risk requirement | 19,343 | 21,404 | 23,808 | 24,046 | 23,972 | 0 | % | 24 | % | |||||||||||||||||||
Market risk requirement | 778 | 591 | 694 | 1,122 | 1,172 | 5 | % | 51 | % | |||||||||||||||||||
Operational risk requirement | 6,627 | 7,563 | 8,606 | 9,493 | 10,604 | 12 | % | 60 | % | |||||||||||||||||||
Total capital requirements | 26,748 | 29,558 | 33,108 | 34,660 | 35,749 | 3 | % | 34 | % | |||||||||||||||||||
Ordinary Capital Level 1 (COn1) | 69,629 | 83,090 | 115,532 | 116,048 | 131,531 | 13 | % | 89 | % | |||||||||||||||||||
Deductible concepts Level 1 (COn1) | -7,807 | -10,637 | -12,442 | -10,011 | -11,768 | 18 | % | 51 | % | |||||||||||||||||||
Capital Level 2 (COn2) | 24,972 | 26,113 | 26,427 | 30,427 | 32,854 | 8 | % | 32 | % | |||||||||||||||||||
Integrated capital - RPC (i) | 86,793 | 98,566 | 129,517 | 136,464 | 152,618 | 12 | % | 76 | % | |||||||||||||||||||
Excess capital | 60,045 | 69,008 | 96,409 | 101,804 | 116,869 | 15 | % | 95 | % | |||||||||||||||||||
Risk-weighted assets - RWA (ii) | 327,312 | 361,678 | 405,179 | 424,501 | 438,129 | 3 | % | 34 | % | |||||||||||||||||||
Regulatory Capital ratio [(i)/(ii)] | 26.5 | % | 27.3 | % | 32.0 | % | 32.1 | % | 34.8 | % | ||||||||||||||||||
Ratio TIER 1 [Capital Level 1/RWA] | 18.9 | % | 20.0 | % | 25.4 | % | 25.0 | % | 27.3 | % |
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
14
3Q20 Earnings Release |
Asset Quality
In 3Q20, Banco Macro’s non-performing to total financing ratio (under Central Bank rules) reached a level of 1.14%, down from 1.52% in 2Q20, and down from the 1.9% posted in 3Q19.
Consumer portfolio non-performing loans improved 54b.p. (down to 0.96% from 1.5%) while Commercial portfolio non-performing loans were practically unchanged in 3Q20 (up to 1.55% from 1.54%).
Consumer portfolio non-performing loans ratio continues to be positively impacted by 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 non performing and the possibility to refinance outstanding credit card balances.
The coverage ratio (measured as total allowances under Expected Credit Losses over Non Performing loans under Central Bank rules) improved to 302.94% in 3Q20. Write-offs over total loans totaled 0.25%.
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) | 3Q19 | 4Q19 | 1Q20 | 2Q20 | 3Q20 | QoQ | YoY | |||||||||||||||||||||
Commercial portfolio | 121,370 | 127,331 | 112,709 | 87,981 | 76,034 | -14 | % | -37 | % | |||||||||||||||||||
Non-performing | 566 | 1,700 | 1,535 | 1,359 | 1,180 | -13 | % | 109 | % | |||||||||||||||||||
Consumer portfolio | 159,267 | 155,881 | 153,059 | 169,322 | 173,701 | 3 | % | 9 | % | |||||||||||||||||||
Non-performing | 4,768 | 4,170 | 2,082 | 2,547 | 1,667 | -35 | % | -65 | % | |||||||||||||||||||
Total portfolio | 280,637 | 283,212 | 265,768 | 257,302 | 249,735 | -3 | % | -11 | % | |||||||||||||||||||
Non-performing | 5,334 | 5,870 | 3,617 | 3,906 | 2,847 | -27 | % | -47 | % | |||||||||||||||||||
Commercial non-perfoming ratio | 0.47 | % | 1.34 | % | 1.36 | % | 1.54 | % | 1.55 | % | ||||||||||||||||||
Consumer non-perfoming ratio | 2.99 | % | 2.68 | % | 1.36 | % | 1.50 | % | 0.96 | % | ||||||||||||||||||
Total non-performing/ Total portfolio | 1.90 | % | 2.07 | % | 1.36 | % | 1.52 | % | 1.14 | % | ||||||||||||||||||
Total allowances | 5,929 | 6,225 | 6,275 | 8,227 | 8,625 | 5 | % | 45 | % | |||||||||||||||||||
Coverage ratio w/allowances | 111.15 | % | 106.05 | % | 173.49 | % | 210.62 | % | 302.94 | % | ||||||||||||||||||
Write Offs | 1,134 | 753 | 592 | 546 | 631 | 16 | % | -44 | % | |||||||||||||||||||
Write Offs/ Total portfolio | 0.40 | % | 0.27 | % | 0.22 | % | 0.21 | % | 0.25 | % |
15
3Q20 Earnings Release |
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 3Q20) | ||||
Allowances under BCRA rules | 7,827 | |||
Re-measurement of financial inst. | -529 | |||
ECL under I.F.R.S9 (Jan 2019) | 7,298 | |||
Expected Credit Losses (ECL) - 2020 Evolution | ||||
ECL under I.F.R.S.9 EOP 4Q19 | 6,235 | |||
12months ECL (Stage 1) | 2,156 | |||
Financial inst. with increased credit risk (Stage 2) | 1,121 | |||
Financial inst. considered credit impaired (Stage 3) | 250 | |||
Monetary result generated by allowances | �� | -1,137 | ||
ECL under I.F.R.S.9 EOP 3Q20 | 8,625 |
16
3Q20 Earnings Release |
CER Exposure and Foreign Currency Position
CER EXPOSURE | MACRO Consolidated | Change | ||||||||||||||||||||||||||
In MILLION $ (Measuring Unit Current at EOP) | 3Q19 | 4Q19 | 1Q20 | 2Q20 | 3Q20 | QoQ | YoY | |||||||||||||||||||||
CER adjustable ASSETS | ||||||||||||||||||||||||||||
Government Securities | 119 | 5,014 | 2,932 | 21,085 | 44,209 | 110 | % | 37050 | % | |||||||||||||||||||
Loans (*) | 17,641 | 17,780 | 17,858 | 17,669 | 17,257 | -2 | % | -2 | % | |||||||||||||||||||
Private sector loans | 9,536 | 8,522 | 7,932 | 7,391 | 6,944 | -6 | % | -27 | % | |||||||||||||||||||
Mortgage loans (UVA adjusted) | 8,105 | 9,258 | 9,923 | 10,275 | 10,309 | 0 | % | 27 | % | |||||||||||||||||||
Other loans | 0 | 0 | 3 | 3 | 4 | - | - | |||||||||||||||||||||
Total CER adjustable assets | 17,760 | 22,794 | 20,790 | 38,754 | 61,466 | 59 | % | 246 | % | |||||||||||||||||||
CER adjustable LIABILITIES | ||||||||||||||||||||||||||||
Deposits (*) | 272 | 503 | 662 | 2,409 | 955 | -60 | % | 251 | % | |||||||||||||||||||
UVA Unemployment fund | 497 | 681 | 702 | 651 | 694 | 7 | % | 40 | % | |||||||||||||||||||
Total CER adjustable liabilities | 769 | 1,184 | 1,364 | 3,060 | 1,649 | -46 | % | 114 | % | |||||||||||||||||||
NET CER EXPOSURE | 16,991 | 21,610 | 19,426 | 35,694 | 59,817 | 68 | % | 252 | % | |||||||||||||||||||
(*) Includes Loans &Time Deposits CER adjustable (UVAs) |
FOREIGN CURRENCY POSITION | MACRO Consolidated | Change | ||||||||||||||||||||||||||
In MILLION $ (Measuring Unit Current at EOP) | 3Q19 | 4Q19 | 1Q20 | 2Q20 | 3Q20 | QoQ | YoY | |||||||||||||||||||||
Cash and deposits in Banks | 76,000 | 86,770 | 77,790 | 86,103 | 92,351 | 7 | % | 22 | % | |||||||||||||||||||
Cash | 13,315 | 13,350 | 5,094 | 4,686 | 7,718 | 65 | % | -42 | % | |||||||||||||||||||
Central Bank of Argentina | 26,958 | 41,658 | 35,325 | 37,318 | 58,221 | 56 | % | 116 | % | |||||||||||||||||||
Other financial institutions local and abroad | 35,722 | 31,757 | 37,367 | 44,095 | 26,407 | -40 | % | -26 | % | |||||||||||||||||||
Others | 5 | 5 | 4 | 4 | 5 | 25 | % | 0 | % | |||||||||||||||||||
Net Income from financial instruments at fair value through P&L | 323 | 302 | 159 | 36 | 4 | -89 | % | -99 | % | |||||||||||||||||||
Derivatives | 0 | 0 | 0 | - | - | |||||||||||||||||||||||
Other financial assets | 5,145 | 4,602 | 4,612 | 4,417 | 4,569 | 3 | % | -11 | % | |||||||||||||||||||
Loans and other financing | 75,007 | 47,661 | 45,297 | 31,896 | 23,366 | -27 | % | -69 | % | |||||||||||||||||||
Other financial institutions | 265 | 744 | 81 | 64 | 39 | -39 | % | -85 | % | |||||||||||||||||||
Non financial private sector & foreign residents | 74,742 | 46,917 | 45,216 | 31,832 | 23,327 | -27 | % | -69 | % | |||||||||||||||||||
Other debt securities | 2,032 | 1,058 | 4,216 | 4,609 | 4,529 | -2 | % | 123 | % | |||||||||||||||||||
Guarantees received | 2,341 | 3,537 | 2,371 | 2,306 | 1,576 | -32 | % | -33 | % | |||||||||||||||||||
Investment in equity instruments | 12 | 13 | 6 | 7 | 7 | 0 | % | -42 | % | |||||||||||||||||||
Investment in associates and joint ventures | 0 | 1 | 0 | 0 | 0 | - | - | |||||||||||||||||||||
Total Assets | 160,861 | 143,944 | 134,451 | 129,375 | 126,403 | -2 | % | -21 | % | |||||||||||||||||||
Deposits | 109,785 | 97,442 | 88,372 | 82,785 | 78,758 | -5 | % | -28 | % | |||||||||||||||||||
Non financial public sector | 3,725 | 4,880 | 3,544 | 3,636 | 2,536 | -30 | % | -32 | % | |||||||||||||||||||
Financial sector | 300 | 281 | 279 | 290 | 393 | 36 | % | 31 | % | |||||||||||||||||||
Non financial private sector & foreign residents | 105,760 | 92,281 | 84,549 | 78,859 | 75,829 | -4 | % | -28 | % | |||||||||||||||||||
Other liabilities from financial intermediation | 6,759 | 6,418 | 6,586 | 5,866 | 5,688 | -3 | % | -16 | % | |||||||||||||||||||
Financing from the Central Bank and other fin. Inst | 3,924 | 2,502 | 780 | 764 | 540 | -29 | % | -86 | % | |||||||||||||||||||
Subordinated corporate bonds | 32,316 | 29,611 | 30,182 | 30,846 | 31,530 | 2 | % | -2 | % | |||||||||||||||||||
Other non financial liabilities | 82 | 30 | 36 | 64 | 56 | -13 | % | -32 | % | |||||||||||||||||||
Total Liabilities | 152,866 | 136,003 | 125,956 | 120,325 | 116,572 | -3 | % | -24 | % | |||||||||||||||||||
NET FX POSITION (Pesos) | 7,995 | 7,941 | 8,495 | 9,050 | 9,831 | 9 | % | 23 | % | |||||||||||||||||||
EOP FX (Pesos per USD) | 57.5583 | 59.8950 | 64.4700 | 70.4550 | 76.1750 | 8 | % | 32 | % | |||||||||||||||||||
NET FX POSITION (USD) | 139 | 133 | 132 | 128 | 129 | 0 | % | -7 | % |
17
3Q20 Earnings Release |
Relevant and Recent Events
· | Interest Payment Class C Peso denominated Notes. In October 2020, the Bank paid quarterly interest on Class C Peso denominated notes in the amount of Ps.201,528,367.94. |
· | Interest Payment Class A Subordinated Notes. In November 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 Novebmer 2020, the Bank paid semiannual interest on Class B Peso denominated notes in the amount of Ps.252,804,212. |
· | Special Shareholders Meeting- Complementary Dividend. The Special Shareholders’ Meeting held on October 21st, 2020 adopted the following resolutions: a) separate a portion of the optional reserve fund for future profit distributions equal to $3,791,721,509 to be applied to the payment of a cash dividend to supplement the Dividend (hereinafter referred to as the ”Supplementary Dividend”) pursuant to paragraph b) below; b) calculate the Supplementary Dividend by multiplying the dividend of $ 20 per share already approved by the General and Special Shareholders’ Meeting held on April 30th 2020, by the coefficient obtained after dividing the most recent Consumer Price Index (“CPI”) published by Instituto Nacional de Estadísticas y Censos (INDEC) and informed by such entity to the date on which Banco Central de la República Argentina issues its authorization for the payment of the Dividend and the Supplementary Dividend, by the CPI of the month of April 2020. The difference arising between the amount obtained after the above described calculation and the Dividend shall determine the amount of the Supplementary Dividend. The aggregate amount to be distributed as Supplementary Dividend may not exceed the amount of $3,791,721,509 separated from the optional reserve fund for future profit distributions. This amount will be deducted from Shareholders’ equity in 4Q20. |
· | Death of Mr. Jorge Horacio Brito- Chairman of the Board of Banco Macro. On November 23rd, 2020 Banco Macro informed the death of the Chairman of our Board, Mr. Jorge Horacio Brito. Pursuant to article 17 of the Bylaws, the office of the Chairman shall be covered by the Vice Chairman, Dr. Delfín J. Ezequiel Carballo. At the first Board meeting to be held, the appointment of a new Vice Chairman and the election, from among the Alternate Directors appointed by the General Shareholder Meeting, of the one who will assume in order to complete the number of regular directors will be discussed. |
· | 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. |
18
3Q20 Earnings Release |
Regulatory Changes
· | Net Foreign Currency Position. In September 2020, through Communication “A” 7101 the Central Bank of Argentina established that that export pre-financings for which its foreign currency funding is matched by liabilities linked to the evolution of such currency (for the same amount), can be deducted from the calculation of the cash position within the Net foreign currency position USD-linked liabilities that exceed that position are not to be considered in such deduction. |
· | USD savings account opening. In September through Communication “A” 7105 the BCRA established that prior to the opening of a USD currency savings account; financial institutions must gather evidence that the client has an income or assets consistent with foreign currency savings, and should not be a beneficiary of any social plan or program. |
· | Foreign currency purchase restrictions. In September 2020 through Communication “A” 7106, the Central Bank of Argentina established debit and credit card consumption abroad with debit on local accounts in pesos, and foreign currency purchased by individuals for the payment of obligations between residents, including payments of foreign currency consumptions through credit cards, will be deducted as of the following month, from the USD 200 cap. Those who are beneficiaries of credit relief programs related to the pandemic will not be able, until the total cancellation of credits or while the relief stands, to have access to the foreign exchange market or sell securities that settle in foreign currency, or transfer them to custodians abroad. For those with capital amortizations due between October 15, 2020 and March 31, 2021, related to financial debts abroad or public securities denominated in foreign currency, must present to the BCRA refinancing plan. |
· | COVID-19. In September 2020 through Communication “A” 7107 the BCRA extended until December 31, 2020, the regulation stating that financial institutions cannot charge fees for transactions done through ATMs (previously until June 30 and extended until September 30). It also extended the regulation that financial institutions cannot charge punitive interest over unpaid credits, and ratifies unpaid instalments deferral to maturity, considering accrual of a compensatory interest rate. |
· | LELIQ position. As of October 2, 2020 through Communication “A” 7122 the Central Bank of Argentina established that financial institutions must reduce in 20 percentage points their net excess position in LELIQ versus their monthly average of daily balances recorded in September 2020. To comply, they shall reduce the excess net position through the gradual maturity of the securities. Along this regulation but in line with it, the BCRA decided to increase the REPO rate from 19% t0 24%. |
· | Rates (Leliqs and Repo). The BCRA decided to increase to 27% the passive REPO BCRA rate (from 24% and previously 19%) and increase the LELIQ rate to 37%. It also determined that companies can access the foreign exchange market 30 days prior to financial debt maturities to cancel capital and interest payments. Corporates can also have access when the pre-cancellation is done within the frame of a securities exchange restructuring process. |
· | Time deposits minimum rate. In October 2020 through Communication “A” 7131 the Central Bank established that as of October 13, 2020, the minimum interest rates are for time deposits of up to Ps.1 million to 89.35% (previously 87%). Additionally, as of the same date, the coefficient that determines the fixed rate of pre-cancellation of UVA-linked time deposits (with early termination option) was increased to 0.7703. |
· | Minimum cash requirements. In October 2020 through Communication “A” 7132 the Central Bank of Argentina decided that for financings that are disbursed as of October 9, 2020, financial institutions will not be able to deduct from cash requirements financings granted to individuals or companies that (i) belong to activity sectors that are not eligible for the “Programa de Asistencia de Emergencia al Trabajo y la Producción” (ATP) social program benefits and/or (ii) have imported consumer goods after March 19, 2020, unless these were medical products and/or supplies. |
19
3Q20 Earnings Release |
· | Rates (Leliq and Repo). The BCRA decided to increase the one-day passive REPO nominal annual rate from 27% to 30%, implying an increment of three percentage points, and offer 7-day REPOs at a nominal annual rate of 33%. In line with this, the LELIQ rate was established at 36%. |
· | Time deposits minimum rate. (Communication “A” 7139. 10/15/2020). The BCRA decided to increase, for time deposits granted as of October 16, 2020, the percentages applicable to the average rates of LELIQ used to set the minimum rates for time deposits of less than $1 million to 91.89% (previously 89.35%). For time deposits granted as of October 21, 2020, the increment goes up to 94.44% and the coefficient that determines the fixed rate of pre-cancellation of UVA-linked time deposits (with early termination option) was increased to 0.7917. This is equivalent to a 34% nominal annual rate for individuals with time deposits of less than $1 million and 32% for the rest. |
· | New credit lines. In October 2020 through Communication “A” 7140 the Central Bank of Argentina established that financial institutions shall grant, within the frame of the ATP social program created by the Decree N°332/2020- financing for a maximum limit equivalent to the amount resulting from the number of employees (F.931) multiplied by the minimum wage plus a 20%, to the SMEs in a list provided by the Federal Administration of Public Revenues (AFIP), and that will be able to rely on a warrant to be arranged by FOGAR, and as of November 1, 2020, can be deducted of reserve requirements (40%). Moreover, credit lines to SMEs are launched to (i) finance investment projects aimed for the purchase of capital assets and/or the construction of facilities necessary for the manufacturing of goods and/or services, at a 30% nominal annual rate; and (ii) for working capital and discounted instruments to SMEs at 35%. Financial institutions affected by this regulation must comprise under these financings, as of October 16, 2020 and until March 31, 2021, the equivalent to 7.5% of their non-financial private sector deposits in pesos (as a monthly average of daily balances of September 2020). For the financing of investment projects, this limit must be 30% of the 7.5% previously stated. |
· | Branch Closures. In October 2020, through Communication “A” 7147 the Central Bank established that financial institutions must require prior approval by the BCRA to proceed to the transfer or closure of branches until March 31, 2020. |
· | REPO rate. In October through Communciation “C” 88436 the Central Bank of Argentina increased the 1-day REPO rate from 30% to 31% and the 7-day REPO rate from 33% to 34.5%. |
· | Fee increases. In November 2020, through Communication “A” 7158 the BCRA established that until February 28, 2020, financial institutions cannot communicate fee increases greater than 9% for January 2021, and 9% for February 2021 for fees on i) Savings accounts: additional debit card issuance; replacement of stolen or lost debit cards; ATM use (other than the Bank’s, the Bank network local or abroad) and cash withdrawal services at points of purchase. Ii) Credit cards: issuance services, renewal, maintenance; replacement or reprinting of stolen or lost cards and additional cards. |
· | Time deposits minimum rate. In November 2020, through Communication “A” 7160 the BCRA increased rates, for time deposits granted as of November 13, 2020, the percentages applicable to the average rates of LELIQ used to set the minimum rates for time deposits of less than $1 million to 102.78% (previously 94.44%). For the rest of time deposits this percentage will be 94.44% (prev. 88.89%). For time deposits granted as of November 18, 2020, for time deposits of less than $1 million, the applicable rate over LELIQ will be 97.37% (89.48% for the rest). The coefficient that determines the fixed rate of pre-cancellation of UVA-linked time deposits (with early termination option) granted as of November 13, 2020, was increased to0.8472 (from 0.7917). For the ones granted as of November 18, 2020, the coefficient will be 0.8026. Additionally, as of November 13, 2020, financial institutions that keep time deposits from the non-financial private sector in pesos below 10% of total deposits in pesos considering only capital balances without interests or adjustments will not be able to: (i) buy LELIQ for their excess position (ii) do 7-day REPOs with the BCRA. |
· | SMEs productive investment credit lines. Reserve requirements. (Communication “A” 7161. |
· | 12/11/2020). The BCRA states that as of November 1, 2020, it grants a reduction in the average reserve requirements in pesos for an amount of 14% of financings considered in item 4.1. of “SMEs productive investment credit line” regulation, granted at a nominal annual rate of up to 30%. As of November 13, 2020, financings to SMEs that have imported consumer goods after March 19, 2020, can be considered within this credit line. |
· | Rates (Leliq and Repo). In November 2020, through Communication “C” 88548 the Central Bank of Argentina increased the one-day passive REPO rate from 31% to 32% and the 7-day rate from 34.5% to 36.5% Additional to this regulation, the BCRA decided to increase the LELIQ rate from 37% to 38%. |
20
3Q20 Earnings Release |
QUARTERLY BALANCE SHEET | MACRO Consolidated | Change | ||||||||||||||||||||||||||
In MILLION $ (Measuring Unit Current at EOP) | 3Q19 | 4Q19 | 1Q20 | 2Q20 | 3Q20 | QoQ | YoY | |||||||||||||||||||||
ASSETS | ||||||||||||||||||||||||||||
Cash and deposits in Banks | 131,988 | 123,121 | 139,896 | 111,850 | 112,934 | 1 | % | -14 | % | |||||||||||||||||||
Cash | 21,146 | 23,861 | 21,052 | 17,097 | 20,151 | 18 | % | -5 | % | |||||||||||||||||||
Central Bank of Argentina | 75,097 | 67,452 | 81,472 | 50,563 | 66,367 | 31 | % | -12 | % | |||||||||||||||||||
Other local& foreign entities | 35,740 | 31,803 | 37,368 | 44,185 | 26,411 | -40 | % | -26 | % | |||||||||||||||||||
Other | 5 | 5 | 4 | 5 | 5 | 0 | % | 0 | % | |||||||||||||||||||
Debt securities at fair value through profit& loss | 2,044 | 6,940 | 1,926 | 13,475 | 16,547 | 23 | % | 710 | % | |||||||||||||||||||
Derivatives | 77 | 62 | 47 | 18 | 14 | -22 | % | -82 | % | |||||||||||||||||||
Repo Transactions | - | 1,330 | 465 | 74,007 | 53,971 | -27 | % | - | ||||||||||||||||||||
Other financial assets | 7,590 | 7,538 | 13,833 | 12,071 | 15,568 | 29 | % | 105 | % | |||||||||||||||||||
Loans& other receivables | 266,204 | 270,133 | 255,365 | 244,582 | 237,678 | -3 | % | -11 | % | |||||||||||||||||||
Non Financial Public Sector | 646 | 7,888 | 4,769 | 6,984 | 4,009 | -43 | % | 521 | % | |||||||||||||||||||
Financial Sector | 3,331 | 4,833 | 3,149 | 2,353 | 1,786 | -24 | % | -46 | % | |||||||||||||||||||
Non Financial private sector and foreign | 262,227 | 257,412 | 247,447 | 235,245 | 231,883 | -1 | % | -12 | % | |||||||||||||||||||
Other debt securities | 104,640 | 78,948 | 110,358 | 160,578 | 240,248 | 50 | % | 130 | % | |||||||||||||||||||
Financial assets in guarantee | 14,633 | 13,052 | 11,344 | 14,986 | 12,228 | -18 | % | -16 | % | |||||||||||||||||||
Investments in equity instruments | 2,066 | 1,879 | 1,796 | 1,733 | 1,627 | -6 | % | -21 | % | |||||||||||||||||||
Investments in other companies (subsidiaries and joint ventures) | 185 | 179 | 191 | 161 | 182 | 13 | % | -2 | % | |||||||||||||||||||
Property, plant and equipment | 31,356 | 31,486 | 31,265 | 30,970 | 30,900 | 0 | % | -1 | % | |||||||||||||||||||
Intangible assets | 4,447 | 4,332 | 4,478 | 4,439 | 4,432 | 0 | % | 0 | % | |||||||||||||||||||
Deferred income tax assets | 44 | 53 | 65 | 70 | 71 | 1 | % | 61 | % | |||||||||||||||||||
Other non financial assets | 2,146 | 1,327 | 1,659 | 2,094 | 2,076 | -1 | % | -3 | % | |||||||||||||||||||
Non-current assets held for sale | 1,718 | 2,141 | 2,211 | 2,196 | 2,247 | 2 | % | 31 | % | |||||||||||||||||||
TOTAL ASSETS | 569,138 | 542,521 | 574,899 | 673,230 | 730,723 | 9 | % | 28 | % | |||||||||||||||||||
LIABILITIES | ||||||||||||||||||||||||||||
Deposits | 354,120 | 321,455 | 353,159 | 437,096 | 492,710 | 13 | % | 39 | % | |||||||||||||||||||
Non Financial Public Sector | 27,799 | 21,474 | 30,980 | 64,237 | 105,636 | 64 | % | 280 | % | |||||||||||||||||||
Financial Sector | 400 | 384 | 330 | 376 | 441 | 17 | % | 10 | % | |||||||||||||||||||
Non Financial private sector and foreign | 325,921 | 299,597 | 321,849 | 372,483 | 386,633 | 4 | % | 19 | % | |||||||||||||||||||
Derivatives | 201 | 940 | 182 | - | - | - | -100 | % | ||||||||||||||||||||
Repo Transactions | 2,961 | 1,226 | - | 1,372 | - | -100 | % | -100 | % | |||||||||||||||||||
Other financial liabilities | 22,832 | 27,111 | 26,641 | 30,996 | 28,635 | -8 | % | 25 | % | |||||||||||||||||||
Financing received from Central Bank and Other Financial Institutions | 4,570 | 2,746 | 981 | 1,151 | 688 | -40 | % | -85 | % | |||||||||||||||||||
Issued Corporate Bonds | 8,208 | 6,757 | 6,197 | 5,220 | 5,019 | -4 | % | -39 | % | |||||||||||||||||||
Current income tax liabilities | 6,159 | 9,950 | 11,674 | 8,062 | 9,961 | 24 | % | 62 | % | |||||||||||||||||||
Subordinated corporate bonds | 32,415 | 29,730 | 30,182 | 30,846 | 31,530 | 2 | % | -3 | % | |||||||||||||||||||
Provisions | 1,834 | 1,802 | 1,801 | 1,738 | 1,626 | -6 | % | -11 | % | |||||||||||||||||||
Deferred income tax liabilities | 2,022 | 199 | 4 | 3,946 | 2,535 | -36 | % | 25 | % | |||||||||||||||||||
Other non financial liabilities | 12,488 | 12,375 | 9,003 | 24,477 | 24,095 | -2 | % | 93 | % | |||||||||||||||||||
TOTAL LIABILITIES | 447,810 | 414,291 | 439,824 | 544,904 | 596,799 | 10 | % | 33 | % | |||||||||||||||||||
SHAREHOLDERS' EQUITY | ||||||||||||||||||||||||||||
Capital Stock | 639 | 639 | 639 | 639 | 639 | 0 | % | 0 | % | |||||||||||||||||||
Issued Shares premium | 12,428 | 12,430 | 12,430 | 12,430 | 12,430 | 0 | % | 0 | % | |||||||||||||||||||
Adjustment to Shareholders' Equity | 43,863 | 43,864 | 43,864 | 43,864 | 43,864 | 0 | % | 0 | % | |||||||||||||||||||
Reserves | 67,168 | 67,168 | 67,168 | 102,297 | 102,297 | 0 | % | 52 | % | |||||||||||||||||||
Retained earnings | -19,814 | -19,814 | 3,968 | -45,454 | -45,454 | 0 | % | 129 | % | |||||||||||||||||||
Other accumulated comprehensive income | 217 | 160 | -1,021 | -361 | -840 | 133 | % | - | ||||||||||||||||||||
Net income for the period / fiscal year | 16,825 | 23,782 | 8,025 | 14,910 | 20,986 | 41 | % | 25 | % | |||||||||||||||||||
Shareholders' Equity attributable to parent company | 121,326 | 128,229 | 135,073 | 128,325 | 133,922 | 4 | % | 10 | % | |||||||||||||||||||
Shareholders' Equity attributable to non controlling interest | 2 | 1 | 2 | 1 | 2 | 100 | % | 0 | % | |||||||||||||||||||
TOTAL SHAREHOLDERS' EQUITY | 121,328 | 128,230 | 135,075 | 128,326 | 133,924 | 4 | % | 10 | % |
21
3Q20 Earnings Release |
INCOME STATEMENT | MACRO Consolidated | Change | ||||||||||||||||||||||||||
In MILLION $ (Measuring Unit Current at EOP) | 3Q19 | 4Q19 | 1Q20 | 2Q20 | 3Q20 | QoQ | YoY | |||||||||||||||||||||
Interest Income | 51,124 | 41,891 | 35,064 | 31,871 | 36,790 | 15 | % | -28 | % | |||||||||||||||||||
Interest Expense | 22,393 | 12,933 | 10,900 | 10,295 | 15,631 | 52 | % | -30 | % | |||||||||||||||||||
Net Interest Income | 28,731 | 28,958 | 24,164 | 21,576 | 21,159 | -2 | % | -26 | % | |||||||||||||||||||
Fee income | 5,947 | 5,791 | 5,522 | 5,398 | 5,738 | 6 | % | -4 | % | |||||||||||||||||||
Fee expense | 552 | 554 | 495 | 394 | 467 | 19 | % | -15 | % | |||||||||||||||||||
Net Fee Income | 5,395 | 5,237 | 5,027 | 5,004 | 5,271 | 5 | % | -2 | % | |||||||||||||||||||
Subtotal (Net Interest Income + Net Fee Income) | 34,126 | 34,195 | 29,191 | 26,580 | 26,430 | -1 | % | -23 | % | |||||||||||||||||||
Net Income from financial instruments at Fair Value Through Profit& Loss | -16,732 | -315 | -4,643 | -2,163 | -7,541 | 249 | % | -55 | % | |||||||||||||||||||
Result from assets at amortised cost | - | 66 | 967 | 20 | 61 | 205 | % | - | ||||||||||||||||||||
Difference in quoted prices of gold and foreign currency | 2,138 | 1,670 | 604 | 846 | 1,207 | 43 | % | -44 | % | |||||||||||||||||||
Other operating income | 1,510 | 1,147 | 1,247 | 1,145 | 1,182 | 3 | % | -22 | % | |||||||||||||||||||
Provision for loan losses | 393 | 1,776 | 977 | 2,523 | 1,749 | -31 | % | 345 | % | |||||||||||||||||||
Net Operating Income | 20,649 | 34,987 | 26,389 | 23,905 | 19,590 | -18 | % | -5 | % | |||||||||||||||||||
Personnel expenses | 6,350 | 6,339 | 5,361 | 6,174 | 6,199 | 0 | % | -2 | % | |||||||||||||||||||
Administrative expenses | 4,153 | 4,190 | 3,034 | 3,126 | 3,400 | 9 | % | -18 | % | |||||||||||||||||||
Depreciation and impairment of assets | 956 | 950 | 948 | 992 | 1,015 | 2 | % | 6 | % | |||||||||||||||||||
Other operating expense | 9,334 | 5,879 | 4,905 | 4,412 | 4,587 | 4 | % | -51 | % | |||||||||||||||||||
Operating Income | -144 | 17,629 | 12,141 | 9,201 | 4,389 | -52 | % | - | ||||||||||||||||||||
Income from associates and joint ventures | 24 | 32 | 23 | 9 | 15 | 67 | % | -38 | % | |||||||||||||||||||
Result from net monetary position | 8,185 | -5,644 | 335 | 479 | 4,836 | 910 | % | -41 | % | |||||||||||||||||||
Net Income before income tax on cont. operations | 8,065 | 12,017 | 12,499 | 9,689 | 9,240 | -5 | % | 15 | % | |||||||||||||||||||
Income tax on continuing operations | -1,047 | 5,061 | 4,474 | 2,804 | 3,164 | 13 | % | -402 | % | |||||||||||||||||||
Net Income from continuing operations | 9,112 | 6,956 | 8,025 | 6,885 | 6,076 | -12 | % | -33 | % | |||||||||||||||||||
Net Income for the period | 9,112 | 6,956 | 8,025 | 6,885 | 6,076 | -12 | % | -33 | % | |||||||||||||||||||
Net Income of the period attributable to parent company | 9,112 | 6,956 | 8,025 | 6,885 | 6,076 | -12 | % | -33 | % | |||||||||||||||||||
Net income of the period attributable to non-controlling interests | - | - | - | - | - | - | - | |||||||||||||||||||||
Other Comprehensive Income | 533 | -57 | -1,181 | 660 | -478 | - | - | |||||||||||||||||||||
Foreign currency translation differences in financial statements conversion | 492 | -172 | -8 | 84 | 51 | -39 | % | -90 | % | |||||||||||||||||||
Profits or losses from financial assets measured at fair value through other comprehensive income (FVOCI)(IFRS 9(4.1.2)(a) | 41 | - | - | -1,173 | -529 | - | - | |||||||||||||||||||||
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD | 9,645 | 6,899 | 6,844 | 7,545 | 5,598 | 10 | % | 145 | % | |||||||||||||||||||
Total Comprehensive Income attributable to parent Company | 9,645 | 6,899 | 6,844 | 7,545 | 5,598 | 10 | % | 145 | % | |||||||||||||||||||
Total Comprehensive Income attributable to non-controlling interests | - | - | - | - | - | - | - |
22
3Q20 Earnings Release |
QUARTERLY ANNUALIZED RATIOS | MACRO Consolidated | |||||||||||||||||||
3Q19 | 4Q19 | 1Q20 | 2Q20 | 3Q20 | ||||||||||||||||
Profitability & performance | ||||||||||||||||||||
Net interest margin | 24.7 | % | 33.6 | % | 25.2 | % | 19.8 | % | 17.1 | % | ||||||||||
Net interest margin adjusted (exc. FX) | 23.0 | % | 31.7 | % | 24.6 | % | 19.1 | % | 16.2 | % | ||||||||||
Net fee income ratio | 20.6 | % | 8.8 | % | 14.3 | % | 14.7 | % | 20.3 | % | ||||||||||
Efficiency ratio | 64.3 | % | 34.5 | % | 39.8 | % | 43.3 | % | 57.1 | % | ||||||||||
Net fee income as % of A&G Expenses | 32.1 | % | 25.4 | % | 36.0 | % | 33.9 | % | 35.6 | % | ||||||||||
Return on average assets | 6.3 | % | 5.2 | % | 5.9 | % | 4.5 | % | 3.5 | % | ||||||||||
Return on average equity | 38.0 | % | 21.8 | % | 24.6 | % | 21.5 | % | 18.4 | % | ||||||||||
Liquidity | ||||||||||||||||||||
Loans as a percentage of total deposits | 75.2 | % | 84.0 | % | 72.3 | % | 56.0 | % | 48.2 | % | ||||||||||
Liquid assets as a percentage of total deposits | 61.0 | % | 59.0 | % | 66.0 | % | 54.0 | % | 51.0 | % | ||||||||||
Capital | ||||||||||||||||||||
Total equity as a percentage of total assets | 21.3 | % | 23.6 | % | 23.5 | % | 19.1 | % | 18.3 | % | ||||||||||
Regulatory capital as % of APR | 26.5 | % | 27.3 | % | 32.0 | % | 32.2 | % | 34.8 | % | ||||||||||
Asset Quality | ||||||||||||||||||||
Allowances over total loans | 2.2 | % | 2.4 | % | 2.5 | % | 3.1 | % | 3.6 | % | ||||||||||
Non-performing financing as a percentage of total financing | 1.9 | % | 2.1 | % | 1.4 | % | 1.5 | % | 1.1 | % | ||||||||||
Coverage ratio w/allowances | 111.2 | % | 106.1 | % | 173.5 | % | 210.7 | % | 302.9 | % | ||||||||||
Cost of Risk | 0.6 | % | 2.6 | % | 1.6 | % | 4.1 | % | 3.0 | % |
ACCUMULATED ANNUALIZED RATIOS | MACRO Consolidated | |||||||||||||||||||
3Q19 | 4Q19 | 1Q20 | 2Q20 | 3Q20 | ||||||||||||||||
Profitability & performance | ||||||||||||||||||||
Net interest margin | 21.5 | % | 23.9 | % | 25.2 | % | 22.3 | % | 20.3 | % | ||||||||||
Net interest margin adjusted (exc. FX) | 20.8 | % | 23.0 | % | 24.6 | % | 21.6 | % | 19.5 | % | ||||||||||
Net fee income ratio | 26.9 | % | 20.1 | % | 14.3 | % | 14.5 | % | 16.1 | % | ||||||||||
Efficiency ratio | 60.3 | % | 50.7 | % | 39.8 | % | 41.6 | % | 45.9 | % | ||||||||||
Net fee income as % of A&G Expenses | 44.6 | % | 39.7 | % | 36.0 | % | 34.9 | % | 35.1 | % | ||||||||||
Return on average assets | 3.6 | % | 3.9 | % | 5.9 | % | 5.2 | % | 4.6 | % | ||||||||||
Return on average equity | 18.4 | % | 19.3 | % | 24.6 | % | 23.0 | % | 21.5 | % | ||||||||||
Liquidity | ||||||||||||||||||||
Loans as a percentage of total deposits | 75.2 | % | 84.0 | % | 72.3 | % | 56.0 | % | 48.2 | % | ||||||||||
Liquid assets as a percentage of total deposits | 61.0 | % | 59.0 | % | 66.0 | % | 54.0 | % | 51.0 | % | ||||||||||
Capital | ||||||||||||||||||||
Total equity as a percentage of total assets | 21.3 | % | 23.6 | % | 23.5 | % | 19.1 | % | 18.3 | % | ||||||||||
Regulatory capital as % of APR | 26.5 | % | 27.3 | % | 32.0 | % | 32.2 | % | 34.8 | % | ||||||||||
Asset Quality | ||||||||||||||||||||
Allowances over total loans | 2.2 | % | 2.4 | % | 2.5 | % | 3.1 | % | 3.6 | % | ||||||||||
Non-performing financing as a percentage of total financing | 1.9 | % | 2.1 | % | 1.4 | % | 1.5 | % | 1.1 | % | ||||||||||
Coverage ratio w/allowances | 111.2 | % | 106.1 | % | 173.5 | % | 210.7 | % | 302.9 | % | ||||||||||
Cost of Risk | 1.5 | % | 1.8 | % | 1.6 | % | 2.8 | % | 2.9 | % |
23
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: November 30, 2020
MACRO BANK INC. | ||
By: | /s/ Jorge Francisco Scarinci | |
Name: Jorge Francisco Scarinci | ||
Title: Chief Financial Officer |