6-K
Macro Bank Inc. (BMA)
SECURITIES AND EXCHANGE COMMISSION
Washington**,D.C. 20549**
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16 UNDERTHE
SECURITIES EXCHANGE ACT OF 1934
August 31, 2020
Commission File Number: 001-32827
MACROBANK INC.
(Translation of registrant’s nameinto English)
Avenida Eduardo Madero 1182
Ciudad Autónoma de Buenos Aires C1106 ACY
Tel: 54 11 5222 6500
(Address of registrant’s principalexecutive offices)
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.
Form 20-F x Form 40-F ¨
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):
Yes ¨ No x
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):
Yes ¨ No x
| 2Q20<br>Earnings Release |
|---|
BancoMacro Announces Results for the Second Quarter of 2020
BuenosAires, Argentina, August 31, 2020 – Banco Macro S.A. (NYSE: BMA; BYMA: BMA) (“Banco Macro” or “BMA” or the “Bank”) announced today its results for the first quarter ended June 30, 2020 (“2Q20”). All figures are in Argentine pesos (Ps.) and have been restated in terms of the measuring unit current at the end of the reporting period. As of 1Q20, the Bank began reporting results applying Hyperinflation Accounting, in accordance with IFRS IAS 29 as established by the Central Bank. For ease of comparison, figures of previous quarters of 2019 have been restated applying IAS 29 to reflect the accumulated effect of the inflation adjustment for each period through June 30, 2020.
Summary
· TheBank’s net income totaled Ps.6.4 billion in 2Q20. This result was 14% lower than the result posted in 1Q20 and 111%higher than in 2Q19. In 2Q20, the accumulated annualized return on average equity (“ROAE”) and the accumulatedannualized return on average assets (“ROAA”) were 23% and 5.2%, respectively.
·In 2Q20, Banco Macro’s financing to the private sector decreased 5% or Ps.12.2 billion quarter over quarter(“QoQ”) totaling Ps.219.4 billion and 12% or Ps.30.4 billion year over year (“YoY”). In the quartercommercial loans stand out, among which Others stand out; with a 58% increase QoQ, mainly driven by the 24% loans toSMEs.
· In2Q20, Banco Macro’s total deposits increased 24% or Ps.78 billion QoQ, totaling Ps.406 billion and representing 80% ofthe Bank’s total liabilities. Private sector deposits increased 16% or Ps.47 billion QoQ.
· Banco Macro continued showing a strong solvency ratio, with an excess capital of Ps.101.8 billion, 32.1% regulatorycapital ratio – Basel III and 25% Tier 1 Ratio. In addition, the Bank’s liquid assets remained at an adequate level,reaching 54% of its total deposits in 2Q20.
· As of 2Q20, the accumulated efficiency ratio reached 41.6%, slightly deteriorating fromthe 39.8% posted in 1Q20.
· In2Q20, the Bank’s non-performing to total financing ratio was 1.52% and the coverage ratio improved to 210%.
| 2Q20 Earnings Release Conference Call | |||
|---|---|---|---|
| IRContacts in Buenos Aires: | |||
| **Tuesday, September 1, 2020 Time: 11:00 a.m. Eastern Time | 12:00 p.m. Buenos Aires Time** | JorgeScarinci | |
| ChiefFinancial Officer | |||
| Toparticipate, please dial:<br><br><br><br>ArgentinaToll Free:<br><br><br><br>(011)3984 5677<br><br><br><br>ParticipantsDial In (Toll Free):<br><br><br><br>+1(844) 450 3847<br><br><br><br>ParticipantsInternational Dial In:<br><br><br><br>+1(412) 317 6370<br><br><br><br>ConferenceID: Banco Macro<br><br><br><br>Webcast:click here | <br><br> <br><br><br> <br>Webcast Replay: click here<br><br> <br><br><br><br><br>Availablefrom 09/01/2020 through 09/15/2020 | NicolásA. Torres<br><br><br><br>InvestorRelations<br><br><br><br><br><br><br><br>Phone:(54 11) 5222 6682<br><br><br><br>E-mail:[email protected]<br><br><br><br><br><br><br><br><br><br><br><br><br><br><br>Visitour website at:<br><br><br><br>www.macro.com.ar/relaciones-inversores |
2
| 2Q20<br>Earnings Release |
|---|
Disclaimer
This press release includes forward-looking statements. We have based these forward-looking statements largely on our current beliefs, expectations and projections about future events and financial trends affecting our business. Many important factors could cause our actual results to differ substantially from those anticipated in our forward-looking statements, including, among other things: inflation; changes in interest rates and the cost of deposits; government regulation; adverse legal or regulatory disputes or proceedings; credit and other risks of lending, such as increases in defaults by borrowers; fluctuations and declines in the value of Argentine public debt; competition in banking and financial services; deterioration in regional and national business and economic conditions in Argentina; and fluctuations in the exchange rate of the peso.
The words “believe,” “may,” “will,” “aim,” “estimate,” “continue,” “anticipate,” “intend,” “expect” and similar words are intended to identify forward-looking statements. Forward-looking statements include information concerning our possible or assumed future results of operations, business strategies, financing plans, competitive position, industry environment, potential growth opportunities, the effects of future regulation and the effects of competition. Forward-looking statements speak only as of the date they were made, and we undertake no obligation to update publicly or to revise any forward-looking statements after we distribute this press release because of new information, future events or other factors. In light of the risks and uncertainties described above, the forward-looking events and circumstances discussed in this press release might not occur and are not guarantees of future performance.
This report is a summary analysis of Banco Macro's financial condition and results of operations as of and for the period indicated. For a correct interpretation, this report must be read in conjunction with all other material periodically filed with the Comisión Nacional de Valores (www.cnv.gob.ar), the Securities and Exchange Commission (www.sec.gov), Bolsas y mercados Argentinos (www.byma.com.ar) and the New York Stock Exchange (www.nyse.com). In addition, the Central Bank (www.bcra.gov.ar) may publish information related to Banco Macro as of a date subsequent to the last date for which the Bank has published information.
Readers of this report must note that this is a translation made from an original version written and expressed in Spanish. Consequently, any matters of interpretation should be referred to the original version in Spanish.
3
| 2Q20 Earnings Release |
|---|
ThisEarnings Release has been prepared in accordance with the accounting framework established by the Central Bank of Argentina (“BCRA”),based on International Financial Reporting Standards (“I.F.R.S.”) and the resolutions adopted by the InternationalAccouting Standards Board (“I.A.S.B”) and by the Federación Argentina de Consejos Profesionales de CienciasEconómicas (“F.A.C.P.E.”). As of January 2020 the Bank started reporting with the application of (i) Expectedlosses of IFRS 9 “Financial Instruments” and (ii) IAS 29 “Financial Reporting in Hyperinflationary Economies”.Data and figures shown in this Earnings Release may differ from the ones shown in the 20-F annual report.
Results
Earnings per outstanding share were Ps.10.01 in 2Q20, 14% lower than 1Q20 and 111% higher than the result posted a year ago.
| EARNINGS PER SHARE | Change | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| In MILLION (Measuring Unit Current at EOP) | 1Q20 | 2Q20 | QoQ | YoY | |||||||
| Net income -Parent Company- (M ) | 3,026 | 7,454 | 6,396 | -14 | % | 111 | % | ||||
| Average # of shares outstanding (M) | 639 | 639 | 639 | 0 | % | 0 | % | ||||
| Average #of treasury stocks (shares repurchased) (M) | 43 | - | - | - | -100 | % | |||||
| Book value per avg. Outstanding share () | 152 | 186 | 187 | 1 | % | 23 | % | ||||
| Shares Outstanding (M) | 639 | 639 | 639 | 0 | % | 0 | % | ||||
| Earnings per avg. outstanding share () | 4.73 | 11.65 | 10.01 | -14 | % | 111 | % | ||||
| EOP FX (Pesos per ) | 42.4483 | 64.4700 | 70.4550 | 9 | % | 66 | % | ||||
| Book value per avg. issued ADS () | 35.81 | 28.85 | 26.54 | -8 | % | -26 | % | ||||
| Earnings per avg. outstanding ADS () | 1.11 | 1.81 | 1.42 | -21 | % | 28 | % |
All values are in US Dollars.
Banco Macro’s 2Q20 net income of Ps.6.4 billion was 14% or Ps.1.1 billion lower than the previous quarter and 111% or Ps.3.4 billion higher YoY. This result represented an accumulated ROAE and ROAA of 23% and 5.2% respectively.
Net operating income (before G&A and personnel expenses) was Ps.22.2 billion in 2Q20, decreasing 9% or Ps.2.3 billion compared to 1Q20 and increased 27% or Ps.4.7 billion compared to the previous year.
In 2Q20 Provision for loan losses totaled Ps.2.3 billion, 158% or Ps.1.4 billion higher than in 1Q20. This increase in loan loss provisions was explained by additional provisions made by the Bank based on estimations of the macroeconomic impact of the current Covid-19 pandemic. Three main groups showing signs of credit deterioration were included in the estimates; i) Ps.930 million related to loans with deferred installments (both commercial and consumer), ii) Ps.600 million related to refinancing of outstanding credit card balances and iii) Ps.750 million related to the 24% loans extended to SMEs, from sectors or activities which the Bank considered troubled o likely to have some trouble.
Operating income (after G&A and personnel expenses) was Ps.8.5 billion in 2Q20, 24% or Ps.2.7 billion lower than in 1Q20 and Ps.8.3 billion higher than a year ago.
It is important to emphasize that this result was obtained with a leverage of 5.2x assets to equity ratio.
4
| 2Q20 Earnings Release | ||||||||
|---|---|---|---|---|---|---|---|---|
| INCOME STATEMENT | Change | |||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| In MILLION (Measuring Unit Current at EOP) | 2Q19 | 1Q20 | 2Q20 | QoQ | YoY | |||
| Net Interest Income | 24,671 | 22,447 | 20,041 | -11 | % | -19 | % | |
| Net fee income | 4,973 | 4,669 | 4,649 | 0 | % | -7 | % | |
| Net Interest Income + Net Fee Income | 29,644 | 27,116 | 24,690 | -9 | % | -17 | % | |
| Net Income from financial instruments at fair<br> value through P&L | -12,671 | -4,313 | -2,009 | -53 | % | -84 | % | |
| Income from assets at amortized cost | -1 | 899 | 18 | -98 | % | -1900 | % | |
| Differences in quoted prices of gold and foreign<br> currency | 482 | 561 | 786 | 40 | % | 63 | % | |
| Other operating income | 1,201 | 1,158 | 1,064 | -8 | % | -11 | % | |
| Provision for loan losses | 1,187 | 908 | 2,343 | 158 | % | 97 | % | |
| Net Operating Income | 17,468 | 24,513 | 22,206 | -9 | % | 27 | % | |
| Employee benefits | 7,185 | 4,980 | 5,734 | 15 | % | -20 | % | |
| Administrative expenses | 3,379 | 2,818 | 2,904 | 3 | % | -14 | % | |
| Depreciation and impairment of assets | 833 | 881 | 921 | 5 | % | 11 | % | |
| Other operating expenses | 5,797 | 4,557 | 4,100 | -10 | % | -29 | % | |
| Operating Income | 274 | 11,277 | 8,547 | -24 | % | 3019 | % | |
| Result from associates & joint ventures | 925 | 22 | 8 | -64 | % | -99 | % | |
| Result from net monetary postion | 6,307 | 311 | 445 | 43 | % | -93 | % | |
| Result before taxes from continuing operations | 7,506 | 11,610 | 9,000 | -22 | % | 20 | % | |
| Income tax | 4,480 | 4,156 | 2,604 | -37 | % | -42 | % | |
| Net income from continuing operations | 3,026 | 7,454 | 6,396 | -14 | % | 111 | % | |
| Net Income of the period | 3,026 | 7,454 | 6,396 | -14 | % | 111 | % | |
| Net income of the period attributable to parent<br> company | 3,026 | 7,454 | 6,396 | -14 | % | 111 | % | |
| Net income of the period attributable to minority<br> interest | 0 | 0 | 0 | - | - |
All values are in US Dollars.
The Bank’s 2Q20 net interest income totaled Ps.20 billion, 11% or Ps.2.4 billion lower than in 1Q20 and 19% or Ps.4.6 billion lower YoY.
In 2Q20 interest income totaled Ps.29.6 billion, 9% or Ps.3 billion lower than in 1Q20 (due to lower income from interest on loans and lower income from securities) and 36% or Ps.16.4 billion lower than in 2Q19.
Income from interest on loans and other financing totaled Ps.18 billion, 12% or Ps.2.5 billion lower compared with the previous quarter, due to a 408 b.p. decrease in the average lending rate (down from 35.6% in 1Q20 to 31.5% in 2Q20), while the average volume of private sector loans remained unchanged. On a yearly basis Income from interest on loans decreased 17% or Ps.3.6 billion.
In 2Q20 income from government and private securities decreased 12% or Ps1.3 billion QoQ (due to lower income from Government securities) and decreased 56% or Ps.12.2 billion compared with the same period of last year. This result is explained 86% by income from government and private securities through other comprehensive income (Central Bank Notes) and the remaining 14% is explained by income from government and private securities at amortized cost.
In 2Q20 income from Repos totaled Ps.1.5 billion, Ps.1.1 billion higher than the previous quarter and 38% or Ps.900 million lower than a year ago.
In 2Q20 FX income totaled a Ps.786 million gain, due to the 9% argentine peso depreciation against the US dollar and the Bank’s long spot dollar position during the quarter and FX trading results (Ps.151 million). It should be noted that if income from investment in derivative financing instruments is added then differences in quoted prices of gold and foreign currency in 2Q20 resulted in a Ps.805 million gain.
5
| 2Q20 Earnings Release | ||||||||
|---|---|---|---|---|---|---|---|---|
| FX INCOME | Variation | |||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| In MILLION (Measuring Unit Current at EOP) | 2Q19 | 1Q20 | 2Q20 | QoQ | YoY | |||
| (1) Differences in quoted prices of gold and<br> foreign currency | 482 | 561 | 786 | 40 | % | 63 | % | |
| Translation of FX assets and liabilities to Pesos | -195 | 510 | 635 | 25 | % | - | ||
| Income from foreign currency exchange | 677 | 51 | 151 | 196 | % | -78 | % | |
| (2) Net Income from financial assets and<br> liabilities at fair value through P&L | -19 | 38 | 19 | -50 | % | - | ||
| Income from investment in<br> derivative financing instruments | -19 | 38 | 19 | -50 | % | - | ||
| (1) +(2) Total Result from Differences in quoted<br> prices of gold and foreign currency | 463 | 599 | 805 | 34 | % | 74 | % |
All values are in US Dollars.
| INTEREST INCOME | MACRO Consolidated | Change | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| In MILLION $ (Measuring Unit Current at EOP) | 2Q19 | 1Q20 | 2Q20 | QoQ | YoY | |||||||
| Interest on Cash and due from Banks | 50 | 64 | 14 | -78 | % | -72 | % | |||||
| Interest from government securities | 21,969 | 11,007 | 9,744 | -11 | % | -56 | % | |||||
| Interest from private securities | 0 | 615 | 347 | -44 | % | - | ||||||
| Interest on loans and other financing | ||||||||||||
| To the financial sector | 522 | 266 | 249 | -6 | % | -52 | % | |||||
| To the public non financial sector | 173 | 585 | 388 | -34 | % | 124 | % | |||||
| Interest on overdrafts | 2,547 | 4,280 | 2,862 | -33 | % | 12 | % | |||||
| Interest on documents | 1,602 | 1,341 | 913 | -32 | % | -43 | % | |||||
| Interest on mortgages loans | 2,462 | 1,894 | 1,491 | -21 | % | -39 | % | |||||
| Interest on pledged loans | 183 | 113 | 96 | -15 | % | -48 | % | |||||
| Interest on personal loans | 8,817 | 7,016 | 6,973 | -1 | % | -21 | % | |||||
| Interest on credit cards loans | 3,932 | 2,883 | 2,280 | -21 | % | -42 | % | |||||
| Interest on financial leases | 64 | 23 | 12 | -48 | % | -81 | % | |||||
| Interest on other loans | 1,337 | 2,101 | 2,769 | 32 | % | 107 | % | |||||
| Interest on Repos | ||||||||||||
| From the BCRA | 0 | 339 | 1,466 | 332 | % | - | ||||||
| Other financial institutions | 2,367 | 44 | 1 | -98 | % | -100 | % | |||||
| Total Interest income | 46,025 | 32,571 | 29,605 | -9 | % | -36 | % | |||||
| Income from Interest on loans | 21,639 | 20,502 | 18,033 | -12 | % | -17 | % |
The Bank’s 2Q20 interest expense totaled Ps.9.6 billion, decreasing 6% (Ps.560 million) compared to the previous quarter and 55% (Ps.11.8 billion) compared to 2Q19.
In 2Q20, interest on deposits represented 91% of the Bank’s total interest expense, decreasing 6% or Ps.566 million QoQ, due to a 262 b.p. reduction in the average rate paid on deposits (down from 16.3% in 1Q20 to 13.6% in 2Q20). The average volume of deposits from the private sector increased 8% and did not offset the decline in interest rates. On a yearly basis, interest on deposits decreased 57% or Ps.11.3 billion.
6
| 2Q20<br> Earnings Release | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| INTEREST<br> EXPENSE | MACRO<br> Consolidated | Change | ||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| In MILLION<br> $ (Measuring Unit Current at EOP) | 2Q19 | 1Q20 | 2Q20 | QoQ | YoY | |||||||
| Deposits | ||||||||||||
| Interest<br> on checking accounts | 77 | 126 | 112 | -11 | % | 45 | % | |||||
| Interest<br> on saving accounts | 224 | 154 | 123 | -20 | % | -45 | % | |||||
| Interest<br> on time deposits | 19,617 | 8,947 | 8,426 | -6 | % | -57 | % | |||||
| Interest<br> on other financing from BCRA and financial inst. | 91 | 23 | 14 | -39 | % | -85 | % | |||||
| Repos | ||||||||||||
| Other<br> financial institutions | 159 | 70 | 19 | -73 | % | -88 | % | |||||
| Interest<br> on corporate bonds | 690 | 300 | 359 | 20 | % | -48 | % | |||||
| Interest<br> on subordinated bonds | 457 | 483 | 498 | 3 | % | 9 | % | |||||
| Interest<br> on other financial liabilities | 39 | 21 | 13 | -38 | % | -67 | % | |||||
| Total<br> financial expense | 21,354 | 10,124 | 9,564 | -6 | % | -55 | % | |||||
| Expenses<br> from interest on deposits | 19,918 | 9,227 | 8,661 | -6 | % | -57 | % |
As of 2Q20, the Bank’s accumulated net interest margin (including FX) was 22.3%, lower than the 25.2% posted in 1Q20 and higher than the 20% posted in 2Q19.
In 2Q20 Net Interest Margin (excluding FX) was 21.6%, lower than the 24.6% posted in 1Q20 but wider than the 19.8% posted in 2Q19.
In 2Q20 Net Interest Margin (Pesos) was 23%, lower than the 30.3% posted in 1Q20 and then the 24.7% in 2Q19; meanwhile Net Interest Margin (USD) was 2.3%, lower than the 3.9% posted in 1Q20 and higher than the 1.1% registered in 2Q19.
| ASSETS<br> & LIABILITIES PERFORMANCE (AR$) | MACRO<br> Consolidated | |||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| In<br> MILLION $ (Measuring Unit Current at EOP) | 2Q19 | 1Q20 | 2Q20 | |||||||||||||||||||||
| AVERAGE BALANCE | REAL INT RATE | NOMINAL INT. RATE | AVERAGE BALANCE | REAL INT RATE | NOMINAL<br> INT. RATE | AVERAGE BALANCE | REAL INT RATE | NOMINAL<br> INT. RATE | ||||||||||||||||
| Yields<br> & rates in annualized nominal % | ||||||||||||||||||||||||
| Interest-earning<br> assets | ||||||||||||||||||||||||
| Loans<br> & Other Financing | ||||||||||||||||||||||||
| Public<br> Sector | 1,450 | 7.1 | % | 47.9 | % | 6,563 | 3.4 | % | 35.9 | % | 6,269 | 2.7 | % | 24.9 | % | |||||||||
| Financial<br> Sector | 5,185 | 1.0 | % | 39.5 | % | 2,232 | 11.5 | % | 46.5 | % | 2,366 | 16.9 | % | 42.2 | % | |||||||||
| Private<br> Sector | 246,506 | -4.4 | % | 32.1 | % | 177,716 | 7.6 | % | 41.4 | % | 185,557 | 11.3 | % | 35.4 | % | |||||||||
| Other<br> debt securities | ||||||||||||||||||||||||
| Central<br> Bank Securities (Leliqs) | 122,424 | 22.6 | % | 69.3 | % | 76,181 | 10.9 | % | 45.7 | % | 84,858 | 13.1 | % | 37.5 | % | |||||||||
| Government<br> & Private Securities | 9,541 | -3.9 | % | 32.8 | % | 21,248 | 18.7 | % | 55.9 | % | 28,548 | 7.4 | % | 30.6 | % | |||||||||
| Repos | 13,562 | 23.1 | % | 70.0 | % | 3,517 | 9.5 | % | 43.8 | % | 34,146 | -3.5 | % | 17.3 | % | |||||||||
| Total<br> interest-earning assets | 398,668 | 5.0 | % | 45.0 | % | 287,457 | 9.3 | % | 43.6 | % | 341,744 | 9.9 | % | 33.6 | % | |||||||||
| Non<br> interest-earning assets | 72,664 | 95,063 | 102,592 | |||||||||||||||||||||
| Total<br> Average Assets | 471,332 | 382,520 | 444,336 | |||||||||||||||||||||
| Interest-bearing<br> liabilities | ||||||||||||||||||||||||
| Deposits | ||||||||||||||||||||||||
| Public<br> Sector | 23,546 | -2.3 | % | 35.0 | % | 12,223 | -4.6 | % | 25.3 | % | 18,297 | -0.3 | % | 21.3 | % | |||||||||
| Private<br> Sector | 222,284 | -5.0 | % | 31.2 | % | 149,417 | -6.9 | % | 22.3 | % | 178,962 | -3.8 | % | 17.0 | % | |||||||||
| BCRA<br> and other financial institutions | 582 | 18.8 | % | 64.1 | % | 362 | -4.4 | % | 25.6 | % | 397 | -3.6 | % | 17.2 | % | |||||||||
| Corporate<br> bonds | 6,456 | 3.5 | % | 42.9 | % | 5,748 | -7.9 | % | 21.0 | % | 4,836 | 6.8 | % | 29.9 | % | |||||||||
| Repos | 1,006 | 18.3 | % | 63.4 | % | 1,212 | -6.2 | % | 23.2 | % | 872 | -10.5 | % | 8.8 | % | |||||||||
| Total<br> int.-bearing liabilities | 253,874 | -4.4 | % | 32.0 | % | 168,962 | -6.8 | % | 22.5 | % | 203,364 | -3.2 | % | 17.7 | % | |||||||||
| Total<br> non int.-bearing liab. & equity | 78,829 | 98,465 | 129,240 | |||||||||||||||||||||
| Total<br> Average Liabilities & Equity | 332,703 | 267,427 | 332,604 | |||||||||||||||||||||
| Assets<br> Performance | 44,698 | 31,132 | 28,521 | |||||||||||||||||||||
| Liabilities<br> Performance | 20,265 | 9,463 | 8,937 | |||||||||||||||||||||
| Net<br> Interest Income | 24,433 | 21,669 | 19,584 | |||||||||||||||||||||
| Total<br> interest-earning assets | 398,668 | 287,457 | 341,744 | |||||||||||||||||||||
| Net<br> Interest Margin (NIM) | 24.6 | % | 30.3 | % | 23.0 | % |
7
| 2Q20<br> Earnings Release | ||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| ASSETS<br> & LIABILITIES PERFORMANCE USD | MACRO<br> Consolidated | |||||||||||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| In<br> MILLION $ (Measuring Unit Current at EOP) | 2Q19 | 1Q20 | 2Q20 | |||||||||||||||||||||
| AVERAGE | REAL<br> INT | NOMINAL | AVERAGE | REAL<br> INT | NOMINAL | AVERAGE | REAL<br> INT | NOMINAL | ||||||||||||||||
| BALANCE | RATE | INT.<br> RATE | BALANCE | RATE | INT.<br> RATE | BALANCE | RATE | INT.<br> RATE | ||||||||||||||||
| Yields<br> & rates in annualized nominal % | ||||||||||||||||||||||||
| Interest-earning<br> assets | ||||||||||||||||||||||||
| Cash<br> and Deposits in Banks | 19,350 | -33.0 | % | 1.0 | % | 32,446 | 0.3 | % | 0.8 | % | 40,416 | 13.0 | % | 0.1 | % | |||||||||
| Loans<br> & Other Financing | ||||||||||||||||||||||||
| Public<br> Sector | 38 | 0.0 | % | 0.0 | % | 0 | 0.0 | % | 0.0 | % | 0 | 0.0 | % | 0.0 | % | |||||||||
| Financial<br> Sector | 506 | -27.9 | % | 8.7 | % | 485 | 6.1 | % | 6.6 | % | 63 | 20.2 | % | 6.4 | % | |||||||||
| Private<br> Sector | 60,767 | -28.2 | % | 8.2 | % | 44,383 | 11.7 | % | 12.2 | % | 36,510 | 26.1 | % | 11.7 | % | |||||||||
| Other<br> debt securities | ||||||||||||||||||||||||
| Government<br> & Private Securities | 2,622 | -31.4 | % | 3.4 | % | 2,948 | 1.7 | % | 2.2 | % | 4,131 | 13.5 | % | 0.5 | % | |||||||||
| Total<br> interest-earning assets | 83,283 | -29.4 | % | 6.4 | % | 80,262 | 6.7 | % | 7.2 | % | 81,120 | 19.0 | % | 5.4 | % | |||||||||
| Non<br> interest-earning assets | 49,464 | 45,996 | 41,886 | |||||||||||||||||||||
| Total<br> Average Assets | 132,747 | 126,258 | 123,006 | |||||||||||||||||||||
| Interest-bearing<br> liabilities | ||||||||||||||||||||||||
| Deposits | ||||||||||||||||||||||||
| Public<br> Sector | 1,559 | -31.5 | % | 3.3 | % | 2,084 | 0.7 | % | 1.2 | % | 1,317 | 13.9 | % | 0.9 | % | |||||||||
| Private<br> Sector | 79,060 | -31.7 | % | 3.0 | % | 59,582 | 0.5 | % | 1.0 | % | 47,717 | 14.1 | % | 1.0 | % | |||||||||
| BCRA<br> and other financial institutions | 1,940 | -28.6 | % | 7.7 | % | 1,340 | 5.8 | % | 6.3 | % | 601 | 20.5 | % | 6.7 | % | |||||||||
| Subordinated<br> bonds | 19,451 | -27.4 | % | 9.4 | % | 27,230 | 6.6 | % | 7.1 | % | 28,065 | 20.9 | % | 7.1 | % | |||||||||
| Total<br> int.-bearing liabilities | 102,010 | -30.8 | % | 4.3 | % | 90,236 | 2.4 | % | 3.0 | % | 77,700 | 16.5 | % | 3.2 | % | |||||||||
| Total<br> non int.-bearing liabilities | 27,059 | 29,035 | 37,298 | |||||||||||||||||||||
| Total<br> Average liabilities | 129,069 | 119,271 | 114,998 | |||||||||||||||||||||
| Assets<br> Performance | 1,327 | 1,438 | 1,084 | |||||||||||||||||||||
| Liabilities<br> Performance | 1,089 | 661 | 627 | |||||||||||||||||||||
| Net<br> Interest Income | 238 | 777 | 457 | |||||||||||||||||||||
| Total<br> interest-earning assets | 83,283 | 80,262 | 81,120 | |||||||||||||||||||||
| Net<br> Interest Margin (NIM) | 1.1 | % | 3.9 | % | 2.3 | % |
In 2Q20 Banco Macro’s net fee income totaled Ps.4.6 billion, Ps.20 million lower than in 1Q20 and 7% or Ps.324 million lower than the same period of last year.
In the quarter, fee income totaled Ps.5 billion, 2% or Ps.114 million lower than in 1Q20. Corporate services fees and credit card fees, stand out; with a 25% and 9% decrease respectively QoQ. On a yearly basis, fee income decreased 7% or Ps.367 million.
In the quarter, total fee expense decreased 20% or Ps.94 million. On a yearly basis, fee expenses decreased 11% or Ps.43 million.
| NET<br> FEE INCOME | MACRO<br> Consolidated | Change | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| In MILLION<br> $ (Measuring Unit Current at EOP) | 2Q19 | 1Q20 | 2Q20 | QoQ | YoY | |||||||
| Fees<br> charged on deposit accounts | 2,175 | 1,872 | 1,916 | 2 | % | -12 | % | |||||
| Credit<br> card fees | 1,091 | 1,132 | 1,029 | -9 | % | -6 | % | |||||
| Corporate<br> services fees | 590 | 567 | 427 | -25 | % | -28 | % | |||||
| ATM<br> transactions fees | 252 | 427 | 413 | -3 | % | 64 | % | |||||
| Insurance<br> fees | 341 | 326 | 334 | 2 | % | -2 | % | |||||
| Debit<br> card fees | 272 | 266 | 300 | 13 | % | 10 | % | |||||
| Financial<br> agent fees (Provinces) | 267 | 252 | 257 | 2 | % | -4 | % | |||||
| Credit<br> related fees | 216 | 160 | 210 | 31 | % | -3 | % | |||||
| Mutual<br> funds & securities fees | 136 | 90 | 101 | 12 | % | -26 | % | |||||
| AFIP<br> & Collection services | 30 | 25 | 16 | -36 | % | -47 | % | |||||
| ANSES<br> fees | 12 | 12 | 12 | 0 | % | 0 | % | |||||
| Total<br> fee income | 5,382 | 5,129 | 5,015 | -2 | % | -7 | % | |||||
| Total<br> fee expense | 409 | 460 | 366 | -20 | % | -11 | % | |||||
| Net<br> fee income | 4,973 | 4,669 | 4,649 | 0 | % | -7 | % |
8
| 2Q20 Earnings<br> Release |
|---|
In 2Q20 Net Income from financial assets and liabilities at fair value through profit or loss totaled a Ps.2 billion loss, improving from the Ps.4.3 billion loss posted in the previous quarter. This improvement can be traced to a lower loss related to sale of financial assets at fair value as a consequence of the inflation adjustment applied to our Leliq holdings (lower inflation was observed during 2Q20) and a Ps.616 increase in profit from government securities.
| NET INCOME FROM FINANCIAL ASSETS AND LIABILITIES<br> AT FAIR VALUE THROUGH PROFIT OR LOSS | Change | ||||||
|---|---|---|---|---|---|---|---|
| In MILLION (Measuring Unit Current at EOP) | 2Q19 | 1Q20 | 2Q20 | QoQ | YoY | ||
| Profit or loss from government securities | 47 | 1,400 | 2,016 | 44 | % | 4189 | % |
| Profit or loss from private securities | 213 | 238 | 104 | -56 | % | -51 | % |
| Profit or loss from investment in derivative financing instruments | -19 | 38 | 19 | -50 | % | -200 | % |
| Profit or loss from other financial assets | 65 | -5 | 9 | -280 | % | -86 | % |
| Profit or loss from investment in equity instruments | 2 | 95 | 82 | -14 | % | 4000 | % |
| Profit or loss from the sale of financial assets at fair value | -12,978 | -6,079 | -4,239 | -30 | % | -67 | % |
| Income from financial assets at fair value through profit or loss | -12,670 | -4,313 | -2,009 | -53 | % | -84 | % |
| Profit or loss from derivative financing instruments | -1 | 0 | 0 | - | - | ||
| Income from financial liabilities at fair value through profit or loss | -1 | 0 | 0 | - | - | ||
| NET INCOME FROM FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS | -12,671 | -4,313 | -2,009 | -53 | % | -84 | % |
All values are in US Dollars.
In the quarter Other Operating Income totaled Ps.1.1 billion, 8% or Ps.94 million lower than in 1Q20. On a yearly basis Other Operating Income decreased 11% or Ps.137.
| OTHER OPERATING INCOME | Change | ||||||
|---|---|---|---|---|---|---|---|
| In MILLION (Measuring Unit Current at EOP) | 2Q19 | 1Q20 | 2Q20 | QoQ | YoY | ||
| Credit and debit cards | 82 | 26 | 17 | -35 | % | -79 | % |
| Lease of safe deposit boxes | 116 | 141 | 165 | 17 | % | 42 | % |
| Other service related fees | 252 | 508 | 363 | -29 | % | 44 | % |
| Other adjustments and interest from other<br> receivables | 247 | 213 | 171 | -20 | % | -31 | % |
| Initial recognition of loans | 63 | 0 | 18 | - | -71 | % | |
| Others | 441 | 270 | 330 | 22 | % | -25 | % |
| Other Operating Income | 1,201 | 1,158 | 1,064 | -8 | % | -11 | % |
All values are in US Dollars.
In 2Q20 Banco Macro’s administrative expenses plus employee benefits totaled Ps.8.6 billion, 11% or Ps.840 million higher than the previous quarter, due to higher (15%) expenses related to employee benefits (salary increases) and higher administrative expenses (3%). On a yearly basis administrative expenses plus employee benefits decreased 20% or Ps.1.9 billion.
During July, 2020 a 26% salary increase was agreed with the Union, which will be payable in installments, for 1Q20 and 2Q20 the increases were 7% and 6% respectively.
Employee benefits increased 15% or Ps.754 million QoQ (the main drivers for the increase were higher salaries and higher social security contributions (18% increases in both lines). On a yearly basis Employee benefits decreased 20% or Ps.1.5 billion. It should be noted that in 2Q19 social security contributions included a Ps.1 billion charge related to a higher social security contributions rate; if we were to exclude this non-recurring item employee benefits would have decreased 7% or Ps.641 million.
9
| 2Q20<br> Earnings Release |
|---|
In 2Q20, the efficiency ratio reached 43.3%, deteriorating from the 39.8% posted in 1Q20. In 2Q20 expenses (employee benefits + G&A expenses + depreciation and impairment of assets) increased 10%, while income (net interest income + net fee income + differences in quoted prices of gold and foreign currency + other operating income + net income from financial assets at fair value through profit or loss – (Turnover Tax
- Insurance on deposits)) were unchanged compared to 1Q20.
If we had excluded from the efficiency ratio calculation the inflation adjustment on our Leliqs holding (as per Central Bank rules shown under profit/loss from financial instruments at fair value through P&L), efficiency ratio would have been 37.2% in 2Q20 and 31.6% in 1Q20
| PERSONNEL & ADMINISTRATIVE EXPENSES | Change | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| In MILLION (Measuring Unit Current at EOP) | 2Q19 | 1Q20 | 2Q20 | QoQ | YoY | ||||||
| Employee benefits | 7,185 | 4,980 | 5,734 | 15 | % | -20 | % | ||||
| Remunerations | 4,414 | 3,670 | 4,335 | 18 | % | -2 | % | ||||
| Social Security Contributions | 2,247 | 816 | 964 | 18 | % | -57 | % | ||||
| Compensation and bonuses | 405 | 385 | 344 | -11 | % | -15 | % | ||||
| Employee services | 119 | 109 | 91 | -17 | % | -24 | % | ||||
| Administrative Expenses | 3,379 | 2,818 | 2,904 | 3 | % | -14 | % | ||||
| Taxes | 438 | 406 | 363 | -11 | % | -17 | % | ||||
| Maintenance, conservation fees | 465 | 427 | 459 | 7 | % | -1 | % | ||||
| Directors & statutory auditors fees | 430 | 319 | 287 | -10 | % | -33 | % | ||||
| Security services | 323 | 310 | 299 | -4 | % | -7 | % | ||||
| Electricity & Communications | 345 | 328 | 327 | 0 | % | -5 | % | ||||
| Other professional fees | 292 | 194 | 179 | -8 | % | -39 | % | ||||
| Rental agreements | 70 | 24 | 27 | 13 | % | -61 | % | ||||
| Advertising & publicity | 134 | 61 | 82 | 34 | % | -39 | % | ||||
| Personnel allowances | 58 | 35 | 22 | -37 | % | -62 | % | ||||
| Stationary & Office Supplies | 29 | 20 | 19 | -5 | % | -34 | % | ||||
| Insurance | 34 | 27 | 38 | 41 | % | 12 | % | ||||
| Hired administrative services | 1 | 1 | 0 | -100 | % | -100 | % | ||||
| Other | 760 | 666 | 802 | 20 | % | 6 | % | ||||
| Total Administrative Expenses | 10,564 | 7,798 | 8,638 | 11 | % | -18 | % | ||||
| Total Employees | 8,893 | 8,732 | 8,706 | ||||||||
| Branches | 463 | 463 | 463 | ||||||||
| Efficiency ratio | 72.2 | % | 39.8 | % | 43.3 | % | |||||
| Accumulated efficiency ratio | 58.4 | % | 39.8 | % | 41.6 | % |
All values are in US Dollars.
In 2Q20, Other Operating Expenses totaled Ps.4.1 billion, decreasing 10% or Ps.457 million QoQ. Turnover Tax and Other provision charges stand out with a 10% (Ps.248 million) decrease and a 38% (Ps.120 million) decrease respectively QoQ. On a yearly basis Other Operating Expenses decreased 29% or Ps.1.7 billion. If we were to exclude non-recurring items from 2Q19, Other Operating Expenses would have increased 40% or Ps.402 million.
10
| 2Q20 Earnings<br> Release | |||||||
|---|---|---|---|---|---|---|---|
| OTHER OPERATING EXPENSES | Change | ||||||
| --- | --- | --- | --- | --- | --- | --- | --- |
| In MILLION (Measuring Unit Current at EOP) | 2Q19 | 1Q20 | 2Q20 | QoQ | YoY | ||
| Turnover Tax | 2,687 | 2,576 | 2,328 | -10 | % | -13 | % |
| Other provision charges | 354 | 316 | 196 | -38 | % | -45 | % |
| Deposit Guarantee Fund Contributions | 173 | 128 | 143 | 12 | % | -17 | % |
| Donations | 54 | 114 | 22 | -81 | % | -59 | % |
| Insurance claims | 14 | 16 | 16 | 0 | % | 14 | % |
| Others | 2,515 | 1,404 | 1,398 | 0 | % | -44 | % |
| Other Operating Expenses | 5,797 | 4,557 | 4,100 | -10 | % | -29 | % |
All values are in US Dollars.
In 2Q20 the result from the net monetary position totaled a Ps.445 million gain, improving 43% or Ps.134 million from the Ps.311 million gain posted in 1Q20. This result is explained by the breakdown of monetary assets and monetary liabilities and their behavior during the quarter; monetary assets (cash, loans, and government securities) decreased while monetary liabilities (deposits) increased, and lower inflation observed during the quarter (242 b.p. below 1Q20 level, down from 7.7995% to 5.3746%) generating a positive result. On a yearly basis result from net monetary position decreased 93% or Ps.5.9 billion.
In 2Q20 Banco Macro's effective income tax rate was 28.9%, lower than the 35.8% effective tax rate of 1Q20.
Financial Assets
Private sector financing
The volume of “core” financing to the private sector (including loans, financial trust and leasing portfolio) totaled Ps.219.4 billion, decreasing 5% or Ps.12.2 billion QoQ and 12% or Ps.30.4 billion YoY.
Within commercial loans, Others stand out with an 30% or Ps.9 billion increase QoQ (mostly due to loans extended to SMEs at a 24% interest rate, as part of the relief package given the Covid-19 pandemic); meanwhile Overdrafts decreased 40% or Ps.13.4 billion.
Within consumer lending personal loans and credit card loans decreased 5% or Ps.2.9 billion and 3% or Ps.1.2 billion respectively QoQ.
Within private sector financing, peso financing increased Ps.244 million, while US dollar financing decreased 36% or USD232 million.
As of 2Q20, Banco Macro´s market share over private sector loans was 7.5%.
11
| 2Q20 Earnings<br> Release | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| FINANCING TO THE PRIVATE SECTOR | Change | |||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| In MILLION (Measuring Unit Current<br> at EOP) | 2Q19 | 1Q20 | 2Q20 | QoQ | YoY | |||||
| Overdrafts | 22,607 | 33,890 | 20,473 | -40 | % | -9 | % | |||
| Discounted documents | 30,534 | 24,138 | 21,850 | -9 | % | -28 | % | |||
| Mortgage loans | 17,417 | 13,446 | 12,969 | -4 | % | -26 | % | |||
| Pledged loans | 5,656 | 3,923 | 3,689 | -6 | % | -35 | % | |||
| Personal loans | 80,592 | 60,695 | 57,764 | -5 | % | -28 | % | |||
| Credit Card loans | 42,462 | 46,666 | 45,461 | -3 | % | 7 | % | |||
| Others | 35,483 | 29,384 | 38,334 | 30 | % | 8 | % | |||
| Interest | 12,160 | 16,496 | 16,849 | 2 | % | 39 | % | |||
| Total loan portfolio | 246,911 | 228,638 | 217,389 | -5 | % | -12 | % | |||
| Total loans in Pesos | 170,204 | 187,500 | 188,709 | 1 | % | 11 | % | |||
| Total loans in | 76,707 | 41,138 | 28,680 | -30 | % | -63 | % | |||
| Financial trusts | 1,407 | 1,741 | 837 | -52 | % | -41 | % | |||
| Leasing | 479 | 207 | 155 | -25 | % | -68 | % | |||
| Others | 969 | 1,009 | 973 | -4 | % | 0 | % | |||
| Total other financing | 2,855 | 2,957 | 1,965 | -34 | % | -31 | % | |||
| Total other financing in Pesos | 1,490 | 1,940 | 955 | -51 | % | -36 | % | |||
| Total other financing in | 1,365 | 1,017 | 1,010 | -1 | % | -26 | % | |||
| Total financing to the private sector | 249,766 | 231,594 | 219,354 | -5 | % | -12 | % | |||
| EOP FX (Pesos per ) | 42.4483 | 64.4700 | 70.4550 | 9 | % | 66 | % | |||
| financing / Financing to the private sector | 31 | % | 18 | % | 14 | % |
All values are in US Dollars.
Public Sector Assets
In 2Q20, the Bank’s public sector assets (excluding LELIQs) to total assets ratio was 9.3%, higher than the 5% registered in the previous quarter, and higher than the 2.8% posted in 2Q19.
In 2Q20, a 40% or Ps.30.1 billion increase in Leliqs stands out, also in the quarter Other government securities increased 134% or Ps.29.8 billion, within Other government securities the Bank decided to invest in CER adjustable bonds and Badlar bonds.
12
| 2Q20<br> Earnings Release | |||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| PUBLIC SECTOR ASSETS | MACRO Consolidated | Change | |||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| In MILLION $ (Measuring Unit Current at EOP) | 2Q19 | 1Q20 | 2Q20 | QoQ | YoY | ||||||||||
| Leliqs | 121,836 | 75,282 | 105,409 | 40 | % | -13 | % | ||||||||
| Other | 15,175 | 22,185 | 51,982 | 134 | % | 243 | % | ||||||||
| Government securities | 137,011 | 97,466 | 157,391 | 61 | % | 15 | % | ||||||||
| Provincial loans | 1,394 | 4,259 | 6,324 | 48 | % | 354 | % | ||||||||
| Loans | 1,394 | 4,259 | 6,324 | 48 | % | 354 | % | ||||||||
| Purchase of government bonds | 118 | 128 | 130 | 2 | % | 10 | % | ||||||||
| Other receivables | 118 | 128 | 130 | 2 | % | 10 | % | ||||||||
| TOTAL PUBLIC SECTOR ASSETS | 138,523 | 101,853 | 163,845 | 61 | % | 18 | % | ||||||||
| TOTAL PUBLIC SECTOR ASSETS (net of LEBAC/NOBAC/LELIQ) | 16,687 | 26,571 | 58,436 | 120 | % | 250 | % | ||||||||
| TOTAL PUBLIC SECTOR ASSETS (net of LEBAC/NOBAC/LELIQ)/TOTAL ASSETS | 2.8 | % | 5.0 | % | 9.3 | % |
Funding
Deposits
Banco Macro’s deposit base totaled Ps.406 billion in 2Q20, increasing 24% or Ps.78 billion QoQ and a Ps.214 million increase YoY and representing 80% of the Bank’s total liabilities.
On a quarterly basis, both private sector and public sector deposits increased with a 16% or Ps.47 billion increase and a 107% or Ps.30.9 billion increase respectively.
The increase in private sector deposits was led by time deposits, which increased 18% or Ps.23.5 billion, while demand deposits increased 13% or Ps.20.5 billion QoQ.
Within private sector deposits, peso deposits increased 24% or Ps.52.3 billion, while US dollar deposits decreased 15% or USD179 million.
As of 2Q20, Banco Macro´s market share over private sector deposits was 6.3%.
| DEPOSITS | Change | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| In MILLION (Measuring Unit Current at EOP) | 1Q20 | 2Q20 | QoQ | YoY | ||||||||||
| Public sector | 33,518 | 28,778 | 59,669 | 107 | % | 78 | % | |||||||
| Financial sector | 348 | 307 | 349 | 14 | % | 0 | % | |||||||
| Private sector | 371,936 | 298,963 | 345,998 | 16 | % | -7 | % | |||||||
| Checking accounts | 41,643 | 56,570 | 71,397 | 26 | % | 71 | % | |||||||
| Savings accounts | 112,436 | 100,581 | 106,256 | 6 | % | -5 | % | |||||||
| Time deposits | 210,870 | 134,128 | 157,674 | 18 | % | -25 | % | |||||||
| Other | 6,987 | 7,683 | 10,671 | 39 | % | 53 | % | |||||||
| Total | 405,802 | 328,047 | 406,016 | 24 | % | 0 | % | |||||||
| Pesos | 273,741 | 245,958 | 329,118 | 34 | % | 20 | % | |||||||
| Foreign Currency (Pesos) | 132,061 | 82,089 | 76,898 | -6 | % | -42 | % | |||||||
| EOP FX (Pesos per ) | 42.4483 | 64.4700 | 70.4550 | 9 | % | 66 | % | |||||||
| Foreign Currency () | 3,111 | 1,273 | 1,091 | -14 | % | -65 | % | |||||||
| Deposits / Total Deposits | 33 | % | 25 | % | 19 | % |
All values are in US Dollars.
13
| 2Q20<br> Earnings Release |
|---|
Banco Macro’s transactional deposits represent approximately 49% of its total deposit base as of 2Q20. These accounts are low cost and are not sensitive to interest rate increases.
Other sources of funds
In 2Q20, the total amount of other sources of funds decreased 4% or Ps.6.4 billion compared to 1Q20. In 2Q20 Shareholder’s Equity decreased 5% or Ps.6.3, due to cash dividend that was declared and approved by the Shareholders’ meeting and which has yet not been paid (Central Bank Authorization still pending, pursuant to Communication “A” 7035 Financial Institutions are not allowed to pay dividends until December 31^st^, 2020); also in the quarter Non-subordinated corporate bonds decreased 16% or Ps.908 million while subordinated bonds increased 2% or Ps.616 million. On a yearly basis other sources of funds increased 10% or Ps.13.5 billion.
| OTHER SOURCES OF FUNDS | MACRO Consolidated | Change | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| In MILLION $ (Measuring Unit Current at EOP) | 2Q19 | 1Q20 | 2Q20 | QoQ | YoY | |||||||
| Central Bank of Argentina | 34 | 17 | 18 | 6 | % | -47 | % | |||||
| Banks and international institutions | 2,489 | 547 | 549 | 0 | % | -78 | % | |||||
| Financing received from Argentine financial institutions | 613 | 346 | 501 | 45 | % | -18 | % | |||||
| Subordinated corporate bonds | 24,543 | 28,036 | 28,652 | 2 | % | 17 | % | |||||
| Corporate bonds | 8,842 | 5,757 | 4,849 | -16 | % | -45 | % | |||||
| Shareholders' equity | 103,741 | 125,469 | 119,200 | -5 | % | 15 | % | |||||
| Total other source of funds | 140,262 | 160,171 | 153,769 | -4 | % | 10 | % |
Liquid Assets
In 2Q20, the Bank’s liquid assets amounted to Ps.220.6 billion, showing a 3% or Ps.5.6 billion increase QoQ, and an 18% or Ps.48.9 billion decrease on a yearly basis.
In 2Q20, LELIQs own portfolio increased 40% or Ps.30.1 billion, which was partially offset by a 20% or Ps.26.1 billion decrease in cash.
In 2Q20 Banco Macro’s liquid assets to total deposits ratio reached 54%.
| LIQUID ASSETS | MACRO Consolidated | Change | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| In MILLION $ (Measuring Unit Current at EOP) | 2Q19 | 1Q20 | 2Q20 | QoQ | YoY | ||||||||||
| Cash | 137,658 | 129,949 | 103,897 | -20 | % | -25 | % | ||||||||
| Guarantees for compensating chambers | 8,554 | 9,167 | 11,282 | 23 | % | 32 | % | ||||||||
| Call | 1,413 | 632 | 0 | -100 | % | -100 | % | ||||||||
| Leliq own portfolio | 121,836 | 75,282 | 105,409 | 40 | % | -13 | % | ||||||||
| Total | 269,461 | 215,030 | 220,588 | 3 | % | -18 | % | ||||||||
| Liquid assets to total deposits | 66.0 | % | 66.0 | % | 54.0 | % |
14
| 2Q20<br> Earnings Release |
|---|
Solvency
Banco Macro continued showing high solvency levels in 2Q20 with an integrated capital (RPC) of Ps.136.5 billion over a total capital requirement of Ps.34.7 billion. Banco Macro’s excess capital in 2Q20 was 294% or Ps.101.8 billion. Since the beginning of 2020 and due to inflation adjustments Equity has increased significantly leading to higher solvency levels (shown under Ordinary Capital Level 1).
The regulatory capital ratio (as a percentage of risk-weighted assets- RWA) was 32.1% in 2Q20; TIER1 Ratio stood at 25%.
The Bank’s aim is to make the best use of this excess capital.
| MINIMUM CAPITAL REQUIREMENT | MACRO Consolidated | Change | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| In MILLION $ | 2Q19(¹) | 1Q20(²) | 2Q20(²) | QoQ | YoY | ||||||||||
| Credit risk requirement | 16,641 | 23,808 | 24,046 | 1 | % | 44 | % | ||||||||
| Market risk requirement | 421 | 694 | 1,122 | 62 | % | 166 | % | ||||||||
| Operational risk requirement | 5,959 | 8,606 | 9,493 | 10 | % | 59 | % | ||||||||
| Total capital requirements | 23,021 | 33,108 | 34,660 | 5 | % | 51 | % | ||||||||
| Ordinary Capital Level 1 (COn1) | 59,406 | 115,532 | 116,048 | 0 | % | 95 | % | ||||||||
| Deductible concepts Level 1 (COn1) | -4,160 | -12,442 | -10,011 | -20 | % | 141 | % | ||||||||
| Capital Level 2 (COn2) | 18,740 | 26,427 | 30,427 | 15 | % | 62 | % | ||||||||
| Integrated capital - RPC (i) | 73,986 | 129,517 | 136,464 | 5 | % | 84 | % | ||||||||
| Excess capital | 50,965 | 96,409 | 101,804 | 6 | % | 100 | % | ||||||||
| Risk-weighted assets - RWA (ii) | 281,700 | 405,179 | 424,501 | 5 | % | 51 | % | ||||||||
| Regulatory Capital ratio [(i)/(ii)] | 26.0 | % | 32.0 | % | 32.0 | % | |||||||||
| Ratio TIER 1 [Capital Level 1/RWA] | 20.0 | % | 25.0 | % | 25.0 | % |
RWA - (ii): Risk Weighted Assets, considering total capital requirements.
(¹) Figueres are not inflation adjusted. Expressed in Pesos current at end of each quarter
(²) Figures are inflaiton adjusted. Expressed in Pesos current at EOP
15
| 2Q20<br> Earnings Release |
|---|
Asset Quality
In 2Q20, Banco Macro’s non-performing to total financing ratio (under Central Bank rules) reached a level of 1.52%, up from 1.36% in 1Q20, and down from the 2.12% posted in 2Q19.
Consumer portfolio non-performing loans deteriorated 14b.p. (up to 1.50% from 1.36%) while Commercial portfolio non-performing loans deteriorated 18 b.p. in 2Q20 (up to 1.54% from 1.36%).
Consumer portfolio non-performing loans ratio continues to be positively impacted by recent measures adopted by the Central Bank of Argentina in the current Covid19 pandemic context, particularly the 60 day grace period that was added to debtor classification before a loan is considered non performing and the possibility to refinance outstanding credit card balances.
The coverage ratio (measured as total allowances under Expected Credit Losses over Non Performing loans under Central Bank rules) improved to 210.65% in 2Q20. Write-offs over total loans totaled 0.21%.
The Bank is committed to continue working in this area to maintain excellent asset quality standards.
| ASSET QUALITY | MACRO Consolidated | Change | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| In MILLION $ (Measuring Unit Current at EOP) | 2Q19 | 1Q20 | 2Q20 | QoQ | YoY | ||||||||||
| Commercial portfolio | 103,534 | 104,694 | 81,725 | -22 | % | -21 | % | ||||||||
| Non-performing | 821 | 1,426 | 1,262 | -12 | % | 54 | % | ||||||||
| Consumer portfolio | 161,229 | 142,176 | 157,282 | 11 | % | -2 | % | ||||||||
| Non-performing | 4,801 | 1,934 | 2,366 | 22 | % | -51 | % | ||||||||
| Total portfolio | 264,763 | 246,870 | 239,007 | -3 | % | -10 | % | ||||||||
| Non-performing | 5,621 | 3,360 | 3,628 | 8 | % | -35 | % | ||||||||
| Commercial non-perfoming ratio | 0.79 | % | 1.36 | % | 1.54 | % | |||||||||
| Consumer non-perfoming ratio | 2.98 | % | 1.36 | % | 1.50 | % | |||||||||
| Total non-performing/ Total portfolio | 2.12 | % | 1.36 | % | 1.52 | % | |||||||||
| Total allowances | 6,188 | 5,828 | 7,642 | 31 | % | 23 | % | ||||||||
| Coverage ratio w/allowances | 110.09 | % | 173.45 | % | 210.64 | % | |||||||||
| Write Offs | 927 | 550 | 507 | -8 | % | -45 | % | ||||||||
| Write Offs/ Total portfolio | 0.35 | % | 0.22 | % | 0.21 | % |
16
| 2Q20 Earnings Release |
|---|
Expected Credit Losses (E.C.L) (I.F.R.S.9)
The Bank records an allowance for expected credit losses for all loans and other debt financial assets not held at fair value through profit or loss, together with loan commitments and financial guarantee contracts, in this section all referred to as ‘financial instruments’. Equity instruments are not subject to impairment under IFRS 9. The ECL allowance is based on the credit losses expected to arise over the life of the asset (the lifetime expected credit loss), unless there has been no significant increase in credit risk since origination, in which case, the allowance is based on the 12 months expected credit loss.(For further information please see our 2019 20-F)
The table below shows, under the E.C.L model, the allowances for credit losses with their respective classification in stages, and the impact the transition to I.F.R.S. 9 has on earnings.
| Transition to I.F.R.S.9 (BOP Jan 1,2019) |
|---|
| IN MILLION (Measuring Unit Current at end of 2Q20) |
| Allowances under BCRA rules |
| Re-measurement of financial inst. |
| ECL under I.F.R.S9 (Jan 2019) |
All values are in US Dollars.
| Expected Credit Losses (ECL) - 2020 Evolution | |
|---|---|
| ECL under I.F.R.S.9 EOP 4Q19 | 5,792 |
| ECL under I.F.R.S.9 EOP 1Q20 | 5,828 |
| 12months ECL (Stage 1) | 1,355 |
| Financial inst. with increased credit risk (Stage 2) | 896 |
| Financial inst. considered credit impaired (Stage 3) | 292 |
| Monetary result generated by allowances | -693 |
| ECL under I.F.R.S.9 EOP 2Q20 | 7,643 |
17
| 2Q20 Earnings Release |
|---|
CER Exposure and Foreign Currency Position
| CER<br> EXPOSURE | MACRO<br> Consolidated | Change | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| In<br> MILLION $ (Measuring Unit Current at EOP) | 2Q19 | 1Q20 | 2Q20 | QoQ | YoY | |||||||
| CER adjustable ASSETS | ||||||||||||
| Government<br> Securities | 119 | 2,724 | 19,586 | 619 | % | 16359 | % | |||||
| Loans (*) | 16,807 | 16,588 | 16,413 | -1 | % | -2 | % | |||||
| Private sector loans | 9,641 | 7,368 | 6,865 | -7 | % | -29 | % | |||||
| Mortgage loans (UVA adjusted) | 7,166 | 9,217 | 9,545 | 4 | % | 33 | % | |||||
| Other loans | 0 | 3 | 3 | - | - | |||||||
| Total CER adjustable<br> assets | 16,926 | 19,312 | 35,999 | 86 | % | 113 | % | |||||
| CER adjustable LIABILITIES | ||||||||||||
| Deposits<br> (*) | 371 | 1,283 | 2,238 | 74 | % | 503 | % | |||||
| UVA Unemployment fund | 497 | 651 | 604 | -7 | % | 22 | % | |||||
| Total CER adjustable<br> liabilities | 868 | 1,934 | 2,842 | 47 | % | 227 | % | |||||
| NET CER EXPOSURE | 16,058 | 17,378 | 33,157 | 91 | % | 106 | % | |||||
| (*) Includes Loans &Time Deposits CER adjustable (UVAs) | ||||||||||||
| --- | ||||||||||||
| FOREIGN<br> CURRENCY POSITION | Change | |||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | |
| In MILLION (Measuring Unit Current<br> at EOP) | 1Q20 | 2Q20 | QoQ | YoY | ||||||||
| Cash and deposits<br> in Banks | 81,607 | 72,259 | 79,980 | 11 | % | -2 | % | |||||
| Cash | 4,807 | 4,731 | 4,352 | -8 | % | -9 | % | |||||
| Central Bank of Argentina | 52,452 | 32,814 | 34,664 | 6 | % | -34 | % | |||||
| Other financial institutions local and abroad | 24,345 | 34,709 | 40,959 | 18 | % | 68 | % | |||||
| Others | 3 | 4 | 5 | 25 | % | 67 | % | |||||
| Net Income from financial<br> instruments at fair value through P&L | 543 | 148 | 34 | -77 | % | -94 | % | |||||
| Derivatives | 0 | 0 | 0 | - | - | |||||||
| Other financial assets | 4,670 | 4,283 | 4,103 | -4 | % | -12 | % | |||||
| Loans and other financing | 78,183 | 42,076 | 29,628 | -30 | % | -62 | % | |||||
| Other financial institutions | 653 | 75 | 59 | -21 | % | -91 | % | |||||
| Non financial private sector & foreign residents | 77,530 | 42,001 | 29,569 | -30 | % | -62 | % | |||||
| Other debt securities | 4,486 | 3,916 | 4,281 | 9 | % | -5 | % | |||||
| Guarantees received | 1,771 | 2,202 | 2,142 | -3 | % | 21 | % | |||||
| Investment in equity instruments | 10 | 6 | 7 | 17 | % | -30 | % | |||||
| Investment in associates<br> and joint ventures | 0 | 0 | 0 | - | - | |||||||
| Total Assets | 171,270 | 124,891 | 120,175 | -4 | % | -30 | % | |||||
| Deposits | 132,061 | 82,089 | 76,898 | -6 | % | -42 | % | |||||
| Non financial public sector | 3,960 | 3,292 | 3,378 | 3 | % | -15 | % | |||||
| Financial sector | 233 | 259 | 269 | 4 | % | 15 | % | |||||
| Non financial private sector & foreign residents | 127,868 | 78,538 | 73,251 | -7 | % | -43 | % | |||||
| Other liabilities from financial intermediation | 4,936 | 6,118 | 5,449 | -11 | % | 10 | % | |||||
| Financing from the Central Bank and other fin. Inst | 2,747 | 725 | 710 | -2 | % | -74 | % | |||||
| Subordinated corporate bonds | 24,494 | 28,036 | 28,652 | 2 | % | 17 | % | |||||
| Other non financial liabilities | 62 | 32 | 60 | 88 | % | -3 | % | |||||
| Total Liabilities | 164,301 | 117,000 | 111,769 | -4 | % | -32 | % | |||||
| NET FX POSITION (Pesos) | 6,969 | 7,892 | 8,406 | 7 | % | 21 | % | |||||
| EOP FX (Pesos per ) | 42.4483 | 64.4700 | 70.4550 | 9 | % | 66 | % | |||||
| NET FX POSITION () | 164 | 122 | 119 | -3 | % | -27 | % |
All values are in US Dollars.
18
| 2Q20 Earnings Release |
|---|
Relevantand Recent Events
| · | Interest Payment Class C Peso denominated Notes. In July 2020, the Bank paid quarterly<br> interest on Class C Peso denominated notes in the amount of Ps.168,089,726.31. |
|---|---|
| · | Play Digital. In July and August Banco Macro in line with its business strategy,<br> decided to make an irrevocable capital contribution in advance of future share subscription<br> to the company “Play Digital S.A.” as of this date these contributions have<br> been accepted. The Company’s purpose is to develop and market a payment solution<br> linked to bank accounts held by financial system users in order to bring significant<br> improvement to their payment experience. The Company’s shareholders are Banco de<br> Galicia y Buenos Aires S.A.U., Banco BBVA Argentina S.A. and Banco Santander Río<br> S.A. and we expect other financial entities to join us and participate progressively<br> in the Company’s capital stock and payment solution. |
| --- | --- |
| · | Covid-19: In early March 2020, the World Health Organization recognized Coronavirus (Covid-19)<br> as a pandemic that is severely affecting almost all countries around the world. The spread<br> of this disease globally has forced the authorities to take drastic health and financial<br> measures to contain and mitigate its effects on health and economic activity. Particularly<br> in the Argentine Republic, on March 19, 2020, through Decree No. 297/2020,<br> the Government established the “social, preventive and compulsory isolation”<br> measure until March 31, 2020, which was then extended until June 7, 2020. Along<br> with health protection rules, tax and financial measures were taken to mitigate the impact<br> on the economy associated with the pandemic, including public direct financial assistance<br> measures for part of the population, the establishment of financial and fiscal facilities<br> for both individuals and companies. As regards measures related to the Entity’s<br> business, the BCRA established maturities extensions, froze the mortgage loan installments<br> and encouraged banks to lend to companies at reduced rates. In addition, the distribution<br> of dividends of the finance institutions was suspended until June 30, 2020. In addition,<br> in the mandatory quarantine context, the BCRA ruled that financial institutions would<br> not be able to open their branches for public service during that period and should continue<br> to provide services to users remotely. They could also trade with each other and their<br> clients in the exchange market remotely. During quarantine, remote trading of stock exchanges<br> and capital markets authorized by the CNV, the custodians and capital market agents registered<br> with the CNV was admitted. In view of the extension of mandatory quarantine, the BCRA<br> then decided that financial institutions would open their branches from Friday, April 3,<br> 2020 for public attention through previous appointments obtained by the Bank’s<br> website. The Bank is developing its activities under the conditions detailed above, giving<br> priority to the compliance of social isolation measures by its employees, with the primary<br> objective of taking care of the public health and well-being of all its stakeholders<br> (employees, suppliers, customers, among others). To this end, it has put in place contingency<br> procedures and has enabled its staff to carry out their tasks remotely. From a commercial<br> point of view, it has emphasized maintaining a close relationship with its customers,<br> trying to respond to their needs at this difficult time, sustaining all virtual channels<br> of care to ensure operability and good response to requirements, monitoring compliance<br> with their business obligations and monitoring the active portfolio in order to detect<br> possible delays in collection and set new conditions for them. Considering the size of<br> the abovementioned situation, the Bank’s Management estimates that this situation<br> could have an impact on its operations and the financial situation and the results of<br> the Bank, which are under analysis, and will ultimately, depend on the extent an duration<br> of the health emergency and the success of the measures taken and taken in |
| --- | --- |
RegulatoryChanges
| · | ATM fees. The Central Bank determined through Communication “A” 7044 that,<br> until December 31, 2020, any operation effected through ATMs will not be subject<br> to any charges or fees. The Central Bank also stated that all outstanding and unpaid<br> installments on loans through September 30, 2020 will be deferred to maturity. |
|---|
19
| 2Q20 Earnings Release | |
|---|---|
| · | Reserve requirements. The Central Bank through Communication “A” 7046 overruled<br> the consolidated calculation for reserve requirements in pesos for the periods July/August 2020<br> and December/January 2021. |
| --- | --- |
| · | Credit card payments. The Central Bank determined that the unpaid balances of credit card<br> financings due between September 1 and September 30, 2020 will be automatically<br> refinanced in nine equal consecutive monthly installments beginning after a three-month<br> grace period. Interest rates on such unpaid balances may not exceed an annual nominal<br> rate of 40%. |
| --- | --- |
| · | Minimum holding period. The CNV (National Securities Commission) through Resolution 843 established<br> that all purchases and sales of securities in the local market with foreign settlement<br> are to be compensated. Additionally all securities transfer from abroad and settled in<br> foreign currency are subject to a minimum holding period of five business days. |
| --- | --- |
| · | Prohibition of bank account closures. The government prohibited the closure and disabling of<br> bank accounts and the imposition of penalties until December 31, 2020. |
| --- | --- |
| · | Subsidized loans to non-SME clients. Through Communication “A” 7054 the Central<br> Bank allowed financing at a 24% interest rate to non-SME clients, provided that the funds<br> are used for the acquisition of machinery and equipment manufactured by SMEs. These loans<br> are included in the reserve requirement reduction and the calculation of the Leliq daily<br> position. |
| --- | --- |
| · | USD wire transfers. The Central Bank through Communication “A” 7063 urged<br> financial institutions to proceed with increased caution when performing USD wire transfers.<br> Particularly the Central Bank flagged certain USD accounts as being suspicious, and established<br> that from the second transfer received by these account in the same month, financial<br> institutions should defer the accreditation until all suspicions are cleared. |
| --- | --- |
| · | Leliq Position vs. PGNME (Net Foreign Exchange Position). The Central Bank established<br> through Communication “A” 7077 that as of August 1, 2020, the excess<br> net position in LELIQ can be incremented by the positive difference between: the maximum<br> limit of the cash position within the Net positive Global Currency Position (the highest<br> between USD 2.5 million, and 4% of the month’s regulatory capital) and the current<br> cash position. In the case that the difference is negative, the increment in limit is<br> zero. |
| --- | --- |
| · | Time deposits minimum rate. The Central Bank ruled through Communication “A”<br> 7078 that all non-adjustable time deposits under Ps.1 million made by individuals as<br> of August 1, 2020 will have a minimum interest rate equivalent to the 87% (up from<br> 79%) of the average LELIQ’s tendering during the week prior to the date in which<br> the deposit was made. Furthermore the Central Bank established that as of September 1,<br> 2020 financial institutions paying this interest rate will be able to increase their<br> excess Leliq position by 13% of the average amount of time deposits of the previous month. |
| --- | --- |
| · | New subsidized credit lines. The Central Bank through communication “A” 7082<br> established that financial institutions must grant loans at a subsidized interest rate<br> to all companies that request them, provided that they are included in the beneficiary<br> list that will be released by the AFIP (Internal Tax Revenue Service). The interest rate<br> will be determined according to the year over year increase in the company’s revenues<br> (with a maximum rate of 15%). The Fondo Nacional de Desarrollo Productivo (FONDEP) will<br> recognize an annual nominal rate equivalent to the difference between 15% and the interest<br> rate paid by the company, in line with the previously mentioned limits. |
| --- | --- |
20
| 2Q20 Earnings<br> Release | |||||||
|---|---|---|---|---|---|---|---|
| QUARTERLY BALANCE SHEET | MACRO<br> Consilidated | Changed | |||||
| --- | --- | --- | --- | --- | --- | --- | --- |
| In MILLION $ (Measuring Unit Current at EOP) | 2Q19 | 1Q20 | 2Q20 | QoQ | YoY | ||
| ASSETS | |||||||
| Cash and deposits in Banks | 137,658 | 129,949 | 103,897 | -20 | % | -25 | % |
| Cash | 13,200 | 19,554 | 15,881 | -19 | % | 20 | % |
| Central Bank of Argentina | 100,097 | 75,679 | 46,968 | -38 | % | -53 | % |
| Other local & foreign entities | 24,357 | 34,710 | 41,043 | 18 | % | 69 | % |
| Other | 4 | 6 | 5 | -17 | % | 25 | % |
| Debt securities at fair value through profit & loss | 2,826 | 1,789 | 12,517 | 600 | % | 343 | % |
| Derivatives | 25 | 43 | 17 | -60 | % | -32 | % |
| Repo Transactions | - | 432 | 68,745 | 15813 | % | - | |
| Other financial assets | 7,542 | 12,849 | 11,213 | -13 | % | 49 | % |
| Loans & other receivables | 255,687 | 237,209 | 227,191 | -4 | % | -11 | % |
| Non Financial Public Sector | 1,552 | 4,430 | 6,488 | 46 | % | 318 | % |
| Financial Sector | 5,776 | 2,925 | 2,186 | -25 | % | -62 | % |
| Non Financial private sector and foreign | 248,359 | 229,854 | 218,517 | -5 | % | -12 | % |
| Other debt securities | 139,020 | 102,511 | 149,160 | 46 | % | 7 | % |
| Financial assets in guarantee | 10,217 | 10,537 | 13,920 | 32 | % | 36 | % |
| Investments in equity instruments | 2,156 | 1,669 | 1,610 | -4 | % | -25 | % |
| Investments in other companies<br> (subsidiaries and joint ventures) | 177 | 177 | 149 | -16 | % | -16 | % |
| Property, plant and equipment | 28,603 | 29,042 | 28,767 | -1 | % | 1 | % |
| Intangible assets | 4,053 | 4,159 | 4,123 | -1 | % | 2 | % |
| Deferred income tax assets | - | 60 | 65 | 8 | % | - | |
| Other non financial assets | 1,835 | 1,540 | 1,946 | 26 | % | 6 | % |
| Non-current assets held for sale | 1,597 | 2,054 | 2,040 | -1 | % | 28 | % |
| TOTAL ASSETS | 591,396 | 534,020 | 625,360 | 17 | % | 6 | % |
| LIABILITIES | |||||||
| Deposits | 405,802 | 328,047 | 406,016 | 24 | % | 0 | % |
| Non Financial Public Sector | 33,518 | 28,778 | 59,669 | 107 | % | 78 | % |
| Financial Sector | 348 | 307 | 349 | 14 | % | 0 | % |
| Non Financial private sector and foreign | 371,936 | 298,962 | 345,998 | 16 | % | -7 | % |
| Derivatives | 16 | 169 | - | -100 | % | -100 | % |
| Repo Transactions | 396 | - | 1,275 | - | 222 | % | |
| Other financial liabilities | 21,177 | 24,747 | 28,792 | 16 | % | 36 | % |
| Financing received from Central Bank and Other<br> Financial Institutions | 3,138 | 911 | 1,070 | 17 | % | -66 | % |
| Issued Corporate Bonds | 8,842 | 5,757 | 4,849 | -16 | % | -45 | % |
| Current income tax liabilities | 5,922 | 10,844 | 7,489 | -31 | % | 26 | % |
| Subordinated corporate bonds | 24,543 | 28,036 | 28,652 | 2 | % | 17 | % |
| Provisions | 1,484 | 1,673 | 1,614 | -4 | % | 9 | % |
| Deferred income tax liabilities | 5,364 | 4 | 3,665 | 91525 | % | -32 | % |
| Other non financial liabilities | 10,970 | 8,362 | 22,736 | 172 | % | 107 | % |
| TOTAL LIABILITIES | 487,654 | 408,550 | 506,158 | 24 | % | 4 | % |
| SHAREHOLDERS' EQUITY | |||||||
| Capital Stock | 670 | 639 | 639 | 0 | % | -5 | % |
| Issued Shares premium | 12,428 | 12,430 | 12,430 | 0 | % | 0 | % |
| Adjustment to Shareholders' Equity | 39,844 | 39,817 | 39,816 | 0 | % | 0 | % |
| Reserves | 62,333 | 62,392 | 95,023 | 52 | % | 52 | % |
| Retained earnings | -18,405 | 3,686 | -42,222 | - | - | ||
| Other accumulated comprehensive income | -294 | -949 | -336 | - | - | ||
| Net income for the period / fiscal year | 7,165 | 7,454 | 13,850 | -66 | % | 80 | % |
| Shareholders'<br> Equity attributable to parent company | 103,741 | 125,469 | 119,200 | -5 | % | 15 | % |
| Shareholders'<br> Equity attributable to non controlling interest | 1 | 1 | 2 | 100 | % | 100 | % |
| TOTAL SHAREHOLDERS' EQUITY | 103,742 | 125,470 | 119,202 | -5 | % | 15 | % |
21
| 2Q20 Earnings<br> Release | |||||||
|---|---|---|---|---|---|---|---|
| INCOME STATEMENT | Change | ||||||
| --- | --- | --- | --- | --- | --- | --- | --- |
| In MILLION $ (Measuring Unit Current at EOP) | 2Q19 | 1Q20 | 2Q20 | QoQ | YoY | ||
| Interest Income | 46,025 | 32,571 | 29,605 | -9 | % | -36 | % |
| Interest Expense | 21,354 | 10,124 | 9,564 | -6 | % | -55 | % |
| Net Interest Income | 24,671 | 22,447 | 20,041 | -11 | % | -19 | % |
| Fee income | 5,382 | 5,129 | 5,015 | -2 | % | -7 | % |
| Fee expense | 409 | 460 | 366 | -20 | % | -11 | % |
| Net Fee Income | 4,973 | 4,669 | 4,649 | 0 | % | -7 | % |
| Subtotal (Net Interest Income + Net Fee Income) | 29,644 | 27,116 | 24,690 | -9 | % | -17 | % |
| Net<br> Income from financial instruments at Fair Value Through Profit & Loss | -12,671 | -4,313 | -2,009 | -53 | % | -84 | % |
| Result from assets at amortised cost | -1 | 899 | 18 | -98 | % | - | |
| Difference<br> in quoted prices of gold and foreign currency | 482 | 561 | 786 | 40 | % | 63 | % |
| Other operating income | 1,201 | 1,158 | 1,064 | -8 | % | -11 | % |
| Provision for loan losses | 1,187 | 908 | 2,343 | 158 | % | 97 | % |
| Net Operating Income | 17,468 | 24,513 | 22,206 | -9 | % | 27 | % |
| Personnel expenses | 7,185 | 4,980 | 5,734 | 15 | % | -20 | % |
| Administrative expenses | 3,379 | 2,818 | 2,904 | 3 | % | -14 | % |
| Depreciation and impairment of assets | 833 | 881 | 921 | 5 | % | 11 | % |
| Other operating expense | 5,797 | 4,557 | 4,100 | -10 | % | -29 | % |
| Operating Income | 274 | 11,277 | 8,547 | -24 | % | 3019 | % |
| Income from associates and joint ventures | 925 | 22 | 8 | -64 | % | -99 | % |
| Result from net monetary position | 6,307 | 311 | 445 | 43 | % | -93 | % |
| Net Income before income tax on cont. operations | 7,506 | 11,610 | 9,000 | -22 | % | 20 | % |
| Income tax on continuing operations | 4,480 | 4,156 | 2,604 | -37 | % | -42 | % |
| Net Income from continuing operations | 3,026 | 7,454 | 6,396 | -14 | % | 111 | % |
| Net Income for the period | 3,026 | 7,454 | 6,396 | -14 | % | 111 | % |
| Net<br> Income of the period attributable to parent company | 3,026 | 7,454 | 6,396 | -14 | % | 111 | % |
| Net<br> income of the period attributable to non-controlling interests | - | - | - | - | - | ||
| Other Comprehensive Income | -165 | -1,097 | 613 | - | - | ||
| Foreign<br> currency translation differences in financial statements conversion | -265 | -7 | 77 | - | - | ||
| Profits<br> or losses from financial assets measured at fair value through other comprehensive income (FVOCI) (IFRS<br> 9(4.1.2)(a) | 100 | -1,090 | 536 | - | 436 | % | |
| TOTAL COMPREHENSIVE INCOME FOR THE PERIOD | 2,860 | 6,357 | 7,009 | 10 | % | 145 | % |
| Total<br> Comprehensive Income attributable to parent Company | 2,860 | 6,357 | 7,009 | 10 | % | 145 | % |
| Total<br> Comprehensive Income attributable to non-controlling interests | - | - | - | - | - |
22
| 2Q20 Earnings<br> Release | ||||||
|---|---|---|---|---|---|---|
| QUARTERLY ANNUALIZED RATIOS | MACRO Consolidated | |||||
| --- | --- | --- | --- | --- | --- | --- |
| 2Q19 | 1Q20 | 2Q20 | ||||
| Profitability & performance | ||||||
| Net interest margin | 21.0 | % | 25.2 | % | 19.8 | % |
| Net interest margin adjusted (exc. FX) | 20.6 | % | 24.6 | % | 19.1 | % |
| Net fee income ratio | 21.0 | % | 14.3 | % | 14.7 | % |
| Efficiency ratio | 72.2 | % | 39.8 | % | 43.3 | % |
| Net fee income as % of A&G Expenses | 29.1 | % | 36.0 | % | 33.9 | % |
| Return on average assets | 2.0 | % | 5.9 | % | 4.5 | % |
| Return on average equity | 8.6 | % | 24.6 | % | 21.5 | % |
| Liquidity | ||||||
| Loans as a percentage of total deposits | 63.0 | % | 72.3 | % | 56.0 | % |
| Liquid assets as a percentage of total deposits | 66.4 | % | 66.0 | % | 54.0 | % |
| Capital | ||||||
| Total equity as a percentage of total assets | 17.5 | % | 23.5 | % | 19.1 | % |
| Regulatory capital as % of APR | 26.3 | % | 32.0 | % | 32.2 | % |
| Asset Quality | ||||||
| Allowances over total loans | 2.4 | % | 2.5 | % | 3.4 | % |
| Non-performing financing as a percentage of total financing | 2.1 | % | 1.4 | % | 1.5 | % |
| Coverage ratio w/allowances | 110.1 | % | 173.5 | % | 210,65 | % |
| Cost of Risk | 1.5 | % | 1.6 | % | 4.1 | % |
| ACCUMULATED ANNUALIZED RATIOS | MACRO Consolidated | |||||
| --- | --- | --- | --- | --- | --- | --- |
| 2Q19 | 1Q20 | 2Q20 | ||||
| Profitability & performance | ||||||
| Net interest margin | 20.0 | % | 25.2 | % | 22.3 | % |
| Net interest margin adjusted (exc. FX) | 19.8 | % | 24.6 | % | 21.6 | % |
| Net fee income ratio | 29.8 | % | 14.3 | % | 14.5 | % |
| Efficiency ratio | 58.4 | % | 39.8 | % | 41.6 | % |
| Net fee income as % of A&G Expenses | 51.0 | % | 36.0 | % | 34.9 | % |
| Return on average assets | 2.4 | % | 5.9 | % | 5.2 | % |
| Return on average equity | 11.5 | % | 24.6 | % | 23.0 | % |
| Liquidity | ||||||
| Loans as a percentage of total deposits | 63.0 | % | 72.3 | % | 56.0 | % |
| Liquid assets as a percentage of total deposits | 66.4 | % | 66.0 | % | 54.0 | % |
| Capital | ||||||
| Total equity as a percentage of total assets | 17.5 | % | 23.5 | % | 19.1 | % |
| Regulatory capital as % of APR | 26.3 | % | 32.0 | % | 32.2 | % |
| Asset Quality | ||||||
| Allowances over total loans | 2.4 | % | 2.5 | % | 3.4 | % |
| Non-performing financing as a percentage of total financing | 2.1 | % | 1.4 | % | 1.5 | % |
| Coverage ratio w/allowances | 110.1 | % | 173.5 | % | 210,65 | % |
| Cost of Risk | 1.9 | % | 1.6 | % | 2.8 | % |
23
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereto duly authorized.
Date: August 31, 2020
| MACRO BANK INC. | |
|---|---|
| By: | /s/ Jorge Francisco Scarinci |
| Name: Jorge Francisco Scarinci | |
| Title: Chief Financial Officer |