Banco Macro (BMA) Q1 2025 earnings summary

Executive summary

• Net income for Q1 2025 was ARS 45.7 billion, down 59% from Q4 2024 and 89% year-on-year, mainly due to lower fair value gains and higher inflation; ROE was 3.8% and ROA 1.2%.

• Net operating income before expenses fell 9% quarter-on-quarter and 68% year-on-year, reflecting lower interest on government securities.

• Operating income after expenses was ARS 347.8 billion, 11% lower sequentially and 82% lower year-on-year.

• Loan and deposit growth exceeded expectations, with total financing up 22% QoQ and 97% YoY to ARS 7.7 trillion, and total deposits up 5% QoQ and 23% YoY to ARS 9.6 trillion.

• Strong solvency maintained with excess capital of ARS 3.2 trillion, capital adequacy ratio at 34.3%, and Tier 1 ratio at 33.6%.

Financial highlights

• Net interest income was ARS 579.2 billion, flat quarter-on-quarter and up 122% year-on-year.

• Interest income totaled ARS 866.7 billion, down 3% quarter-on-quarter and 22% year-on-year.

• Net interest margin (including FX) was 23.2%, down from 24.7% in Q4 2024 and 26.1% in Q1 2024.

• Provision for loan losses rose 62% QoQ and 124% YoY to ARS 66 billion.

• Liquid assets totaled ARS 6.5 trillion, with a liquid assets/total deposits ratio of 68%.

Outlook and guidance

• Real loan growth guidance for 2025 maintained at 60%; deposit growth guidance raised to 45% from 30%.

• ROE guidance for 2025 revised down to 8%-10%, with potential upside if bond prices improve.

• Capital ratio forecast increased to 28%-29% by year-end 2025.

• Operating expenses expected to grow close to inflation (~30%) in 2025.

• Forward-looking statements highlight risks from inflation, interest rates, regulation, credit quality, and macroeconomic volatility in Argentina.