Banco Macro (BMA) Q2 2025 earnings summary

Executive summary

• Net income for Q2 2025 reached ARS 149.5 billion, up 209% from the previous quarter, returning to profitability after a loss a year ago, driven by higher net interest and fee income, gains from financial assets, and lower inflation-related losses, partially offset by higher provisions and taxes.

• Total comprehensive income was ARS 157.1 billion, a 241% increase quarter-on-quarter.

• Annualized ROE and ROA for the quarter were 12% and 3.5%, respectively.

• Operating income after G&A and personnel expenses was ARS 448.8 billion, up 22% QoQ and 226% YoY.

• The result was achieved with a low leverage of 4.1x assets to equity.

Financial highlights

• Net interest income was ARS 696.9 billion, up 14% QoQ and 163% YoY, with interest income up 18% quarter-on-quarter.

• Net fee income reached ARS 180.4 billion, up 16% QoQ and 34% YoY, led by a 90% increase in credit card fees.

• Net income from financial assets and liabilities at fair value was ARS 113.7 billion, up 61% QoQ but down 33% YoY.

• Efficiency ratio improved to 33.9% from 38.2% in Q1 and 55.6% a year ago.

• Provision for loan losses was ARS 103 billion, up 47% QoQ and 349% YoY.

Outlook and guidance

• Net interest margin expected to decline modestly in Q3 due to higher funding costs and reserve requirements.

• Asset quality expected to deteriorate further, with NPLs forecasted to reach 2.5%-3% by year-end.

• ROE guidance for 2025 maintained at 8%-10% in real terms.

• Cost of risk for H2 2025 expected to be around 4%.

• Loan growth guidance for 2025 is 60%, with 45% for 2026.

• Deposit growth guidance for 2025 is 30%.

• Management highlights strong solvency and capital adequacy, aiming to make the best use of excess capital.

• Forward-looking statements caution about risks from inflation, interest rates, regulation, and macroeconomic conditions.