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01/11 03:34
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Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
The earnings call reveals a significant drop in net income and operating income, alongside increased loan loss provisions. Despite some positive aspects like deposit growth and capital adequacy, the overall financial performance is weak with declining margins and income. The Q&A further highlights concerns with lowered ROE guidance and unclear responses on M&A opportunities. The market cap suggests moderate sensitivity, leading to a predicted negative stock price movement of -2% to -8% over the next two weeks.
Net Income ARS 45.7 billion, 59% or ARS 65.3 billion lower than Q4 2024; mainly due to lower net income from financial assets and liabilities at fair value and a bigger loss from the net monetary position.
Net Operating Income Before General and Administrative Expenses ARS 801 billion, 9% or ARS 82.6 billion lower than Q4 2024; due to lower income from interest on government securities. Yearly decrease of 68% or ARS 1.7 trillion.
Provision for Loan Losses ARS 66 billion, 62% or ARS 25.3 billion higher than Q4 2024; due to loan growth. Yearly increase of 124% or ARS 36.6 billion.
Net Interest Income ARS 579.2 billion, ARS 1 billion higher than Q4 2024, and 122% or ARS 318 billion higher year-on-year; due to an 8% decrease in interest expense and a 3% decrease in interest income.
Interest Income ARS 866.7 billion, 3% or ARS 22.6 billion lower than Q4 2024, and 22% or ARS 247.8 billion lower than Q1 2024.
Income from Interest on Loans ARS 592.3 billion, 9% or ARS 49.6 billion higher than Q4 2024; mainly due to an 18% increase in average volume of private sector loans. Yearly decrease of 18% or ARS 132.2 billion.
Income from Government and Private Securities Decreased 21% or ARS 71.5 billion quarter-on-quarter, but increased 83% or ARS 123 billion year-on-year; mainly due to lower income from Bonos del Tesoro Nacional and inflation adjusted bonds.
FX Income ARS 6.4 billion gain, 95% or ARS 118.7 billion lower than a year ago; due to a 4% depreciation of the Argentine peso against the US dollar.
Interest Expense ARS 287.6 billion, decreasing 8% or ARS 23.5 billion compared to Q4 2024, and 66% or ARS 565.8 billion lower compared to Q1 2024.
Net Interest Margin 23.2%, lower than 24.7% in Q4 2024 and 26.1% in Q1 2024.
Fee Income ARS 169.8 billion, 1% or ARS 943 million lower than Q4 2024; yearly increase of 29% or ARS 38.5 billion.
Net Income from Financial Assets and Liabilities at Fair Value ARS 66.4 billion gain, decreasing 55% or ARS 80 billion compared to Q4 2024; mainly due to lower income from Government Securities. Yearly decrease of 97% or ARS 1.9 trillion.
Other Operating Income ARS 68.5 billion, 29% or ARS 15.5 billion higher than Q4 2024; yearly decrease of 2% or ARS 1.4 billion.
Administrative Expenses and Employee Benefits ARS 257 billion, 10% or ARS 27.3 billion lower than Q4 2024; yearly decrease of 19% or ARS 58.5 billion.
Efficiency Ratio 38.2%, improving from 39.4% in Q4 2024; deteriorating from 14.7% a year ago.
Result from Net Monetary Position ARS 267.1 billion loss, 11% or ARS 27.1 billion higher than Q4 2024; 81% or ARS 1.1 trillion lower than a year ago.
Effective Income Tax Rate 43%, higher than the previous quarter.
Total Financing ARS 7.7 trillion, increasing 22% or ARS 1.4 trillion quarter-on-quarter and 97% or ARS 3.8 trillion year-on-year.
Total Deposits ARS 9.6 trillion, increasing 5% or ARS 485.4 billion quarter-on-quarter and 23% or ARS 1.8 trillion year-on-year.
Non-Performing Total Financial Ratio 1.44%.
Capital Adequacy Ratio 34.3%.
Tier 1 Ratio 33.6%.
Liquid Assets to Deposit Ratio 68%.
Market Share in Private Sector Loans: Banco Macro's market share over private sector loans as of March 2025 reached 9.5%.
Market Share in Private Deposits: Banco Macro's market share over private deposits as of March 2025 totaled 7.8%.
Loan Growth: The Bank's total financing reached ARS7.7 trillion, increasing 22%, or ARS1.4 trillion, quarter-on-quarter and increasing 97%, or ARS3.8 trillion year-on-year.
Private Sector Loans: In the first quarter of 2025, private sector loans increased 22%, or ARS1.3 trillion, and on a yearly basis, increased 94%, or ARS3.6 trillion.
Deposits Growth: Total deposits increased 5%, or ARS485.4 billion quarter-on-quarter, totaling ARS9.6 trillion and increased 23%, or ARS1.8 trillion year-on-year.
Non-Performing Loans: Banco Macro's non-performing total financial ratio reached 1.44%.
Capital Adequacy Ratio: Banco Macro accounted an excess capital of ARS3.2 trillion, representing a capital adequacy ratio of 34.3%.
Efficiency Ratio: The efficiency ratio reached 38.2%, improving from the 39.4% posted in the fourth quarter of 2024.
Liquidity Position: The Bank's liquidity remained more than appropriate, with liquid assets during deposit ratio reaching 68%.
Net Income Decline: Banco Macro's net income decreased by ARS65.3 billion (59%) compared to Q4 2024, primarily due to lower net income from financial assets and liabilities and increased losses from the net monetary position.
Provision for Loan Losses: Provision for loan losses increased by ARS25.3 billion (62%) compared to Q4 2024, indicating potential credit risk and challenges in loan performance.
Inflation Impact: Higher inflation observed in Q1 2025, with a rate of 8.6%, which negatively affected the net monetary position, resulting in a loss of ARS267.1 billion.
Interest Income Decline: Interest income decreased by ARS22.6 billion (3%) compared to Q4 2024, and 22% year-on-year, indicating challenges in generating revenue from loans.
Non-Performing Loans: The non-performing total financial ratio reached 1.44%, with a deterioration in the consumer portfolio non-performing loans, which increased to 1.81%.
Regulatory Compliance: The effective income tax rate increased to 43%, which may impact net income and overall profitability.
Currency Depreciation: The Argentine peso depreciated by 4% against the US dollar, affecting FX income, which decreased by ARS118.7 billion (95%) year-on-year.
Market Share Risks: Banco Macro's market share over private sector loans is 9.5%, indicating competitive pressures in the banking sector.
Loan Growth: In the first quarter of 2025, total financing reached ARS7.7 trillion, increasing 22%, or ARS1.4 trillion, quarter-on-quarter and increasing 97%, or ARS3.8 trillion year-on-year.
Market Share: Banco Macro's market share over private sector loans as of March 2025 reached 9.5%.
Capital Utilization: Banco Macro accounted an excess capital of ARS3.2 trillion, representing a capital adequacy ratio of 34.3% and a Tier 1 ratio of 33.6%. The Bank aims to make the best use of this excess capital.
Efficiency Improvement: The efficiency ratio reached 38.2%, improving from the 39.4% posted in the fourth quarter of 2024.
Net Income Expectations: In the first quarter of 2025, Banco Macro's net income totaled ARS45.7 billion, a decrease of 59% compared to the fourth quarter of 2024.
Provision for Loan Losses: Provision for loan losses totaled ARS66 billion, 62% higher than the fourth quarter of 2024, indicating a cautious outlook due to loan growth.
Interest Margin: The net interest margin, including FX, was 23.2%, lower than the 24.7% posted in the fourth quarter of 2024.
Asset Quality: The non-performing total financial ratio reached 1.44%, with a coverage ratio of 163.34%.
Share Buyback Program: Banco Macro has not announced any share buyback program during the first quarter of 2025.
Dividend Program: Banco Macro has not discussed any dividend program during the first quarter of 2025.
The earnings call summary reveals several concerns: a rise in nonperforming loans, unexpected expenses, and poor bond portfolio performance. Despite optimistic loan and deposit growth forecasts, the Q&A section highlighted uncertainties, such as unclear management responses and no immediate buyback plans. The market may react negatively to the weak financial results, increased costs, and cautious outlook on returns. Given the mid-cap status of the company, these factors are likely to result in a stock price decrease of -2% to -8% over the next two weeks.
The earnings call highlights mixed signals: while there is strong loan growth and a robust capital position, the decrease in net income and rising non-performing loans, coupled with management's cautious outlook on NIMs and asset quality, balance out the positives. The Q&A reveals concerns about volatility and rising interest rates, which could pressure margins and asset quality. However, optimistic loan and deposit growth guidance provide a counterbalance. Given the market cap of $3.7 billion, the stock is likely to see a neutral movement in the next two weeks.
The earnings call reveals a significant drop in net income and operating income, alongside increased loan loss provisions. Despite some positive aspects like deposit growth and capital adequacy, the overall financial performance is weak with declining margins and income. The Q&A further highlights concerns with lowered ROE guidance and unclear responses on M&A opportunities. The market cap suggests moderate sensitivity, leading to a predicted negative stock price movement of -2% to -8% over the next two weeks.
The earnings report reveals mixed financial performance with declining interest income and a reduced net interest margin. Despite some positive aspects like increased net fee income, the overall sentiment is negative due to higher loan loss provisions and deteriorating efficiency ratio. The Q&A section highlights concerns about inflation, modest NPL deterioration, and unclear management strategies. Additionally, the market cap of $3.7 billion suggests moderate sensitivity to earnings announcements. Overall, the report's negative aspects outweigh the positives, leading to a negative sentiment rating.
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