Banco Macro (BMA) Q2 2024 earnings summary

Executive summary

• Net income for the first half of 2024 was ARS 93.1 billion, down 55% year-over-year, with a significant ARS 233.2 billion net loss in Q2 2024 due to negative mark-to-market on government securities and lower FX gains.

• Operating income before expenses rose 36% year-over-year to ARS 2.38 trillion, but after expenses, operating income dropped 93% sequentially and 85% year-over-year; before G&A and personnel expenses, it was ARS 460.2 billion, down 76% QoQ and 53% YoY.

• The bank applied hyperinflation accounting (IAS 29) for all figures, restated for comparability.

• Total financing increased 17% QoQ and 5% YoY to ARS 3.47 trillion; total deposits rose 13% QoQ but fell 5% YoY to ARS 6.74 trillion.

Financial highlights

• Net interest income in Q2 2024 was ARS 188 billion, down 6% sequentially and 53% year-over-year; net interest margin fell to 19.9% from 26.2% in Q1 2024.

• Net fee income increased 8% sequentially but was 2% lower year-over-year.

• Net income from financial assets at fair value through P&L was ARS 121.2 billion, down 92% QoQ and 37% YoY due to negative mark-to-market on government securities.

• Provision for loan losses decreased 26% sequentially and 20% year-over-year.

• Administrative expenses plus employee benefits fell 15% sequentially but rose 14% year-over-year.

Outlook and guidance

• Loan growth expected at 15% for 2024, with 30-35% growth anticipated in 2025 if GDP recovers.

• ROE guidance for 2024 is 10-13% in real terms, with a sustainable level of 15-20% in the future.

• Asset quality expected to remain strong, with manageable increases in delinquency if lending becomes more aggressive.

• NIMs expected to remain stable, with net interest income growth driven by increased lending.

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