Banco Macro (BMA) Q3 2024 earnings summary

Executive summary

• Net income for Q3 2024 reached ARS 91.3 billion, a 293% increase year-over-year, driven by higher net interest income and lower inflation-related losses, recovering from a loss in the previous quarter.

• Operating income before expenses was ARS 829.2 billion, up 61% sequentially but down 25% year-over-year; after expenses, it was ARS 403.7 billion, up 263% sequentially but 44% lower than Q3 2023.

• The bank exercised put options on inflation-linked securities, resulting in a one-time ARS 50 billion loss.

• Total financing increased 17% quarter-over-quarter and 28% year-over-year, reaching ARS 4.55 trillion.

• Total deposits rose 7% sequentially and 30% year-over-year to ARS 8.1 trillion, representing 76% of liabilities.

Financial highlights

• Net interest income was ARS 569.1 billion, up 167% quarter-on-quarter and 63% year-over-year.

• Net fee income totaled ARS 117.8 billion, up 8% sequentially and 7% year-over-year.

• Net interest margin (including FX) was 31.5%, up from 20% in Q2 2024 but down from 60% in Q3 2023.

• Provision for loan losses was ARS 23 billion, up 24% sequentially and 53% year-over-year.

• Earnings per share were ARS 142.1, up 293% year-over-year.

Outlook and guidance

• Loan growth expected to be 25–35% in real terms for 2024 and around 40% for 2025, supported by improving macro conditions and GDP growth forecasts of 5–6% for 2025.

• ROE guidance for 2024 is around 10%, with low to mid-10% expected for 2025.

• NII projected to grow 30–35% in real terms in 2025.

• NPL ratio expected to remain below 2% by end of 2025 despite loan book expansion.

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