Banco Macro (BMA) Q4 2024 earnings summary

Executive summary

• Net income for Q4 2024 was ARS 102.2 billion, up 4% sequentially, but full-year net income fell 74% year-over-year to ARS 325.1 billion.

• Operating income before expenses in Q4 2024 was ARS 813.9 billion, down 9% sequentially and 72% year-over-year; after expenses, it dropped 17% from Q3 and 84% year-over-year.

• Asset quality remained strong with a non-performing loan ratio of 1.28% and coverage ratio of 158.8% in Q4 2024.

• Capital adequacy ratio was 32.4% and Tier 1 ratio 31.6% at year-end, with high solvency maintained.

• Total financing reached ARS 5.8 trillion, up 18% quarter-over-quarter and 45% year-over-year; total deposits were ARS 8.4 trillion, down 3% sequentially but up 15% year-over-year.

Financial highlights

• Net interest income in Q4 2024 was ARS 532.6 billion, down 13% sequentially but up 33% year-over-year.

• Net interest margin (including FX) was 26.1% in Q4 2024, down from 26.8% in Q3 and 41.7% a year ago.

• Provision for loan losses in Q4 2024 was ARS 37.5 billion, up 51% sequentially; cost of risk was 2.9%.

• Net fee income rose 6% sequentially and 11% year-over-year to ARS 134.9 billion in Q4 2024.

• Liquid assets to total deposits ratio was 79%, with liquid assets totaling ARS 6.7 trillion.

Outlook and guidance

• 2025 guidance targets 12%-15% ROE, 60% real loan growth, and a cost of risk up to 2.5%, with capital ratios expected to decline as lending accelerates.

• GDP is expected to grow 5.5% in 2025 after a 2% decline in 2024; inflation forecast for 2025 is 25%, down from 118% in 2024.

• ROE could return to 20% by end of 2026 if favorable conditions persist.

• The bank aims to make the best use of its excess capital and maintain strong asset quality.

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