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 UNDER THE
SECURITIES EXCHANGE ACT OF 1934
August 10, 2023
Commission File Number: 001-32827
MACROBANK INC.
(Translation of registrant’s name intoEnglish)
Av. Eduardo Madero 1182
Buenos Aires C1106ACY
Tel: 54 11 5222 6500
(Address of registrant’s principal executiveoffices)
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 | o |
|---|
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 | o | 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 | o | No | x |
|---|
BANCO MACRO SA
Condensed interim financial statements as of March 31, 2023 together with the reports on review of interim financial statements
| BANCO MACRO SA |
|---|
| CONDENSED INTERIM FINANCIAL STATEMENTS AS OF MARCH 31, 2023 |
| CONTENT |
| Cover sheet |
| Condensed Consolidated Interim Financial Statements |
| Condensed<br> consolidated interim statement of financial position |
| Condensed<br> consolidated interim statement of income |
| Condensed<br> consolidated interim statement of other comprehensive income |
| Condensed<br> consolidated interim statement of changes in shareholders’ equity |
| Condensed<br> consolidated interim statement of cash flows |
| Notes to the condensed consolidated interim Financial Statements |
| Note<br> 1: Corporate information |
| Note<br> 2: Operations of the Bank |
| Note<br> 3: Basis for the preparation of these Financial Statements and applicable accounting standards |
| Note<br> 4: Contingent transactions |
| Note<br> 5: Debt securities at fair value through profit or loss |
| Note<br> 6: Other financial assets |
| Note<br> 7: Loans and other financing |
| Note<br> 8: Loss allowance for expected credit losses on credit exposures not measured at fair value through profit or loss |
| Note<br> 9: Other debt securities |
| Note<br> 10: Equity instruments at fair value through profit or loss – Prisma Medios de Pago SA |
| Note<br> 11: Fair value quantitative and qualitative disclosures |
| Note<br> 12: Business combinations |
| Note<br> 13: Investment in associates and joint arrangements |
| Note<br> 14: Other non-financial assets |
| Note<br> 15: Related parties |
| Note<br> 16: Deposits |
| Note<br> 17: Other financial liabilities |
| Note<br> 18: Provisions |
| Note<br> 19: Other non-financial liabilities |
| Note<br> 20: Analysis of financial assets to be recovered and financial liabilities to be settled |
| Note<br> 21: Disclosures by operating segment |
| Note<br> 22: Income tax |
| Note<br> 23: Commissions income |
| Note<br> 24: Differences in quoted prices of gold and foreign currency |
| Note<br> 25: Other operating income |
| Note<br> 26: Employee benefits |
| Note<br> 27: Administrative expenses |
| Note<br> 28: Other operating expenses |
| Note<br> 29: Additional disclosures in the statement of cash flows |
| Note<br> 30: Capital stock |
| Note<br> 31: Earnings per share – Dividends |
| BANCO MACRO SA |
| --- |
| CONDENSED INTERIM FINANCIAL STATEMENTS AS OF MARCH 31, 2023 |
| CONTENT (contd.) |
| Notes to the condensed consolidated interim Financial Statements (contd.) |
| Note<br> 32: Deposit guarantee insurance |
| Note<br> 33: Restricted assets |
| Note<br> 34: Trust activities |
| Note<br> 35: Compliance with CNV regulations |
| Note<br> 36: Accounting items that identify the compliance with minimum cash requirements |
| Note<br> 37: Penalties applied to the entity and summary proceedings initiated by the BCRA |
| Note<br> 38: Corporate bonds issuance |
| Note<br> 39: Off balance sheet transactions |
| Note<br> 40: Tax and other claims |
| Note<br> 41: Restriction on dividends distribution |
| Note<br> 42: Capital management, corporate governance transparency policy and risk management |
| Note<br> 43: Changes in the Argentine macroeconomic environment and financial and capital markets |
| Note<br> 44: Events after reporting period |
| Note<br> 45: Accounting principles – explanation added for translation into English |
| Condensed consolidated exhibits |
| Exhibit B:<br> Classification of loans and other financing by situation and collateral received |
| Exhibit C:<br> Concentration of loans and financing facilities |
| Exhibit D:<br> Breakdown of loans and other financing by terms |
| Exhibit F:<br> Change of property, plant and equipment |
| Exhibit G:<br> Change in intangible assets |
| Exhibit H:<br> Deposit concentration |
| Exhibit I:<br> Breakdown of financial liabilities for residual terms |
| Exhibit J:<br> Changes in provisions |
| Exhibit L:<br> Foreign currency amounts |
| Exhibit Q:<br> Breakdown of statement of income |
| Exhibit R:<br> Value adjustment for credit losses – Allowances for uncollectibility risk |
| Condensed separate interim Financial Statements |
| --- |
| Condensed<br> separate interim Financial Statements |
| Notes<br> to the condensed separate interim Financial Statements |
| Condensed<br> separate exhibits |
BANCO MACRO SA
Corporate name: Banco Macro SA
Registered office: Avenida Eduardo Madero1182 – Autonomous City of Buenos Aires
Corporate purpose and main activity: Commercialbank
Central Bank of Argentina: Authorizedas “Argentine private bank” under No. 285
Registration with the public Registryof Commerce: Under No. 1154 - By-laws Book No. 2, Folio 75 dated March 8, 1967
By-Laws expiry date: March 8, 2066
Registration withthe IGJ (Superintendency of Corporations): Under No. 9777 – Corporations Book No. 119 Volume A of Sociedades Anónimas,dated October 8, 1996
Personal tax identification number: 30-50001008-4
Registration datesof amendments to by-laws:August 18, 1972, August 10, 1973, July 15, 1975, May 30, 1985, September 3, 1992, May 10, 1993, November 8,1995, October 8, 1996, March 23, 1999, September 6, 1999, June 10, 2003, December 17, 2003, September 14,2005, February 8, 2006, July 11, 2006, July 14, 2009, November 14, 2012, August 2, 2014, July 15, 2019.
| CONDENSED CONSOLIDATED INTERIM STATEMENT OF FINANCIAL POSITION | ||||||
|---|---|---|---|---|---|---|
| AS OF MARCH 31, 2023 AND DECEMBER 31, 2022 | ||||||
| (Translation<br> of the Financial Statements originally issued in Spanish – See Note 45) | ||||||
| (Figures<br> stated in thousands of pesos in constant currency as of March 31, 2023) | ||||||
| Items | Notes | Exhibits | 03/31/2023 | 12/31/2022 | ||
| --- | --- | --- | --- | --- | --- | --- |
| ASSETS | ||||||
| Cash and Deposits in Banks | 11 | 297,608,616 | 304,439,346 | |||
| Cash | 35,190,191 | 33,613,487 | ||||
| Central Bank of Argentina | 181,264,323 | 174,718,240 | ||||
| Other Local and Foreign Entities | 81,140,535 | 96,092,867 | ||||
| Other | 13,567 | 14,752 | ||||
| Debt Securities at fair value through profit or loss | 5 and 11 | 286,961,214 | 256,921,146 | |||
| Derivative Financial Instruments | 11 | 455 | 52,222 | |||
| Repo transactions | 11 | 39,118,052 | 75,388,016 | |||
| Other Financial Assets | 6, 8 and 11 | R | 82,488,854 | 70,537,234 | ||
| Loans and other financing | 7, 8 and 11 | B, C, D and R | 697,785,970 | 728,691,136 | ||
| Non-financial Public Sector | 1,409,863 | 2,686,553 | ||||
| Other Financial Entities | 1,856,903 | 1,128,790 | ||||
| Non-financial Private Sector and Foreign<br> Residents | 694,519,204 | 724,875,793 | ||||
| Other Debt Securities | 8, 9 and 11 | R | 813,991,293 | 897,783,471 | ||
| Financial Assets delivered as guarantee | 11 and 33 | 37,498,405 | 37,274,786 | |||
| Equity Instruments at fair value through profit or loss | 10 and 11 | 1,072,672 | 1,021,892 | |||
| Investment in associates and joint arrangements | 13 | 1,491,722 | 1,389,695 | |||
| Property, plant and equipment | F | 124,426,006 | 124,001,126 | |||
| Intangible Assets | G | 21,808,325 | 21,229,833 | |||
| Deferred Income Tax Assets | 22 | 89,016 | 89,557 | |||
| Other Non-financial Assets | 14 | 15,257,843 | 15,159,173 | |||
| Non-current Assets held for sale | 10,530,398 | 10,780,918 | ||||
| TOTAL ASSETS | 2,430,128,841 | 2,544,759,551 |
| 1 | Carlos A. Giovanelli <br> Vice Chairperson |
| --- | --- | | CONDENSED CONSOLIDATED INTERIM STATEMENT OF FINANCIAL POSITION | | --- | | AS OF MARCH 31, 2023 AND DECEMBER 31, 2022 | | (Translation<br> of the Financial Statements originally issued in Spanish – See Note 45) | | (Figures<br> stated in thousands of pesos in constant currency as of March 31, 2023) | | Items | Notes | Exhibits | 03/31/2023 | | | 12/31/2022 | | | --- | --- | --- | --- | --- | --- | --- | --- | | LIABILITIES | | | | | | | | | Deposits | 11 and 16 | H and I | | 1,464,338,267 | | | 1,576,914,944 | | Non-financial Public Sector | | | | 111,059,915 | | | 133,847,469 | | Financial Sector | | | | 1,910,914 | | | 2,012,780 | | Non-financial Private Sector and Foreign Residents | | | | 1,351,367,438 | | | 1,441,054,695 | | Liabilities at fair value through profit or loss | 11 | I | | 2,476,842 | | | 640,345 | | Derivative Financial Instruments | 11 | I | | 100,398 | | | 2,886 | | Repo Transactions | 11 | I | | 4,486,445 | | | | | Other Financial Liabilities | 11 and 17 | I | | 153,007,216 | | | 164,449,843 | | Financing received from the Central Bank of Argentina<br> and other financial institutions | 11 | I | | 4,507,195 | | | 2,981,642 | | Issued Corporate Bonds | 11 and 38 | I | | 3,286,431 | | | 3,305,711 | | Current Income Tax Liabilities | 22 | | | 11,384,081 | | | 13,207,278 | | Subordinated Corporate Bonds | 11 and 38 | I | | 86,393,588 | | | 87,805,350 | | Provisions | 18 | J and R | | 3,165,946 | | | 3,302,694 | | Deferred Income Tax Liabilities | 22 | | | 16,551,510 | | | 16,163,865 | | Other Non-financial Liabilities | 19 | | | 47,613,336 | | | 52,112,752 | | TOTAL LIABILITIES | | | | 1,797,311,255 | | | 1,920,887,310 | | SHAREHOLDERS’ EQUITY | | | | | | | | | Capital Stock | 30 | | | 639,413 | | | 639,413 | | Non-capital contributions | | | | 12,429,781 | | | 12,429,781 | | Adjustments to Shareholders’ Equity | | | | 213,790,374 | | | 213,790,374 | | Earnings Reserved | | | | 344,313,270 | | | 344,313,270 | | Unappropriated Retained Earnings | | | | 52,558,097 | | | 166,294 | | Accumulated Other Comprehensive Income | | | | (793,074 | ) | | 38,208 | | Net Income of the period / for the fiscal year | | | | 9,763,227 | | | 52,391,803 | | Net Shareholders’ Equity attributable to controlling<br> interest | | | | 632,701,088 | | | 623,769,143 | | Net Shareholders’ Equity attributable to non-controlling<br> interests | | | | 116,498 | | | 103,098 | | TOTAL SHAREHOLDERS’ EQUITY | | | | 632,817,586 | | | 623,872,241 | | TOTAL SHAREHOLDERS’ EQUITY AND LIABILITIES | | | | 2,430,128,841 | | | 2,544,759,551 |
The notes 1 to 45 to the condensed consolidated interim Financial Statements and exhibits B to D, F to J, L, Q and R are an integral part of the condensed consolidated interim Financial Statements.
| 2 | Carlos A. Giovanelli <br> Vice Chairperson |
| --- | --- | | CONDENSED CONSOLIDATED INTERIM STATEMENT OF INCOME | | --- | | FOR THE THREE MONTH PERIODS ENDED MARCH 31, 2023 AND 2022 | | (Translation<br> of the Financial Statements originally issued in Spanish – See Note 45) | | (Figures<br> stated in thousands of pesos in constant currency as of March 31, 2023) | | Items | Notes | Exhibits | Quarter<br> ended<br><br> 03/31/2023 | | | Quarter<br> ended<br><br> 03/31/2022 | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | Interest income | | Q | | 228,617,933 | | | 140,653,070 | | | Interest expense | | Q | | (130,955,878 | ) | | (54,994,658 | ) | | Net Interest Income | | | | 97,662,055 | | | 85,658,412 | | | Commissions income | 23 | Q | | 24,292,411 | | | 23,029,529 | | | Commissions expense | | Q | | (2,260,494 | ) | | (2,159,834 | ) | | Net Commissions Income | | | | 22,031,917 | | | 20,869,695 | | | Subtotal (Net Interest income plus Net Commissions income) | | | | 119,693,972 | | | 106,528,107 | | | Net gain from measurement of financial instruments at fair<br> value through profit or loss | | Q | | 9,194,886 | | | 13,029,203 | | | Profit from sold or derecognized assets at amortized cost | | | | 60 | | | | | | Differences in quoted prices of gold and foreign currency | 24 | | | 36,673,135 | | | 6,303,048 | | | Other operating income | 25 | | | 5,715,846 | | | 6,772,473 | | | Allowance for loan losses | | | | (3,478,584 | ) | | (1,521,901 | ) | | Net Operating Income | | | | 167,799,315 | | | 131,110,930 | | | Employee benefits | 26 | | | (23,468,111 | ) | | (20,044,264 | ) | | Administrative expenses | 27 | | | (11,650,473 | ) | | (11,264,734 | ) | | Depreciation and amortization of fixed assets | | F and G | | (4,893,735 | ) | | (4,478,094 | ) | | Other operating expenses | 28 | | | (23,836,393 | ) | | (20,680,243 | ) | | Operating Income | | | | 103,950,603 | | | 74,643,595 | | | Loss from associates and joint arrangements | 13 | | | (219,703 | ) | | (73,470 | ) | | Loss on net monetary position | | | | (88,386,677 | ) | | (59,076,917 | ) | | Income before tax on continuing operations | | | | 15,344,223 | | | 15,493,208 | | | Income tax on continuing operations | 22.c) | | | (5,567,596 | ) | | (3,219,320 | ) | | Net Income from continuing operations | | | | 9,776,627 | | | 12,273,888 | | | Net Income of the period | | | | 9,776,627 | | | 12,273,888 | | | Net Income of the period attributable to controlling<br> interest | | | | 9,763,227 | | | 12,298,038 | | | Net Income / (Loss) of the period attributable to non-controlling<br> interest | | | | 13,400 | | | (24,150 | ) |
| 3 | Carlos A. Giovanelli <br> Vice Chairperson |
| --- | --- | | CONSOLIDATED EARNINGS PER SHARE | | --- | | FOR THE THREE MONTH PERIODS ENDED MARCH 31, 2023 AND 2022 | | (Translation<br> of the Financial Statements originally issued in Spanish – See Note 45) | | (Figures<br> stated in thousands of pesos in constant currency as of March 31, 2023) | | Items | Quarter<br> ended<br><br> 03/31/2023 | | Quarter<br> ended<br><br> 03/31/2022 | | | --- | --- | --- | --- | --- | | Net Profit attributable to Parent’s<br> shareholders | | 9,763,227 | | 12,298,038 | | Plus: Potential diluted earnings per common share | | | | | | Net Profit attributable to Parent’s shareholders<br> adjusted as per diluted earnings | | 9,763,227 | | 12,298,038 | | Weighted average of outstanding common shares of the period | | 639,413 | | 639,413 | | Plus: Weighted average of the number of additional common<br> shares with dilution effects | | | | | | Weighted average of outstanding common shares of the period adjusted as<br> per dilution effect | | 639,413 | | 639,413 | | Basic earnings per share (in pesos) | | 15.2690 | | 19.2333 |
| 4 | Carlos A. Giovanelli <br> Vice Chairperson |
| --- | --- | | CONDENSED CONSOLIDATED INTERIM STATEMENT OF OTHER COMPREHENSIVE INCOME | | --- | | FOR THE THREE MONTH PERIODS ENDED MARCH 31, 2023 AND 2022 | | (Translation<br> of the Financial Statements originally issued in Spanish – See Note 45) | | (Figures<br> stated in thousands of pesos in constant currency as of March 31, 2023) | | Items | Notes | Exhibits | Quarter<br> ended<br><br> 03/31/2023 | | | Quarter<br> ended<br><br> 03/31/2022 | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | Net Income of the period | | | | 9,776,627 | | | 12,273,888 | | | Items of Other Comprehensive Income that will be reclassified<br> to profit or loss | | | | | | | | | | Foreign currency translation differences in financial<br> statements conversion | | | | (211,961 | ) | | (527,321 | ) | | Foreign currency translation differences of the period | | | | (211,961 | ) | | (527,321 | ) | | Profit or loss from financial instruments measured at<br> fair value through other comprehensive income (FVOCI) (IFRS 9(4.1.2)(a)) | | | | (619,321 | ) | | (693,261 | ) | | Profit or loss of the period from financial instruments at<br> fair value through other comprehensive income (FVOCI) | | Q | | (1,880,529 | ) | | (3,312,595 | ) | | Adjustment for reclassification of period | | | | 908,177 | | | 2,277,253 | | | Income tax | 22.c) | | | 353,031 | | | 342,081 | | | Total Other Comprehensive Loss that will be reclassified<br> to profit or loss | | | | (831,282 | ) | | (1,220,582 | ) | | Total Other Comprehensive Loss | | | | (831,282 | ) | | (1,220,582 | ) | | Total Comprehensive Income of the period | | | | 8,945,345 | | | 11,053,306 | | | Total Comprehensive Income attributable to controlling<br> interest | | | | 8,931,945 | | | 11,077,456 | | | Total Comprehensive Income / (Loss) attributable to non-controlling<br> interest | | | | 13,400 | | | (24,150 | ) |
The notes 1 to 45 to the condensed consolidated interim Financial Statements and exhibits B to D, F to J, L, Q and R are an integral part of the condensed consolidated interim Financial Statements.
| 5 | Carlos A. Giovanelli <br> Vice Chairperson |
| --- | --- | | CONDENSED CONSOLIDATED INTERIM STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY | | --- | | FOR THE THREE MONTH PERIODS ENDED MARCH 31, 2023 | | (Translation<br> of the Financial Statements originally issued in Spanish – See Note 45) | | (Figures<br> stated in thousands of pesos in constant currency as of March 31, 2023) | | | | Capital<br> <br><br> stock | Non-capital<br><br> Contributions | | Other<br> Comprehensive<br><br> Income | | | | Earnings<br> Reserved | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | Changes | Notes | Outstanding<br><br> shares | Additional<br><br> paid-in<br><br> capital | Adjustments<br><br> to<br><br> Shareholders’<br><br> Equity | Accumulated<br><br> foreign<br><br> currency<br><br> translation<br><br> difference in<br><br> Financial<br><br> Statements<br><br> conversion | | Other | | Legal | Other | Unappropriated<br><br> Retained<br><br> Earnings | Total<br><br> controlling<br><br> interests | | Total<br> Non-<br><br> controlling<br><br> interests | Total<br> <br><br> Equity | | | Restated<br>amount at the beginning of the fiscal year | | 639,413 | 12,429,781 | 213,790,374 | 547,873 | | (509,665 | ) | 123,492,083 | 220,821,187 | 52,558,097 | 623,769,143 | | 103,098 | 623,872,241 | | | Total comprehensive<br>income of the period | | | | | | | | | | | | | | | | | | - Net<br>income of the period | | | | | | | | | | | 9,763,227 | 9,763,227 | | 13,400 | 9,776,627 | | | -<br>Other comprehensive loss of the period | | | | | (211,961 | ) | (619,321 | ) | | | | (831,282 | ) | | (831,282 | ) | | Amount<br>at the end of the period | | 639,413 | 12,429,781 | 213,790,374 | 335,912 | | (1,128,986 | ) | 123,492,083 | 220,821,187 | 62,321,324 | 632,701,088 | | 116,498 | 632,817,586 | | | CONDENSED CONSOLIDATED INTERIM STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY | | --- | | FOR THE THREE MONTH PERIODS ENDED MARCH 31, 2022 | | (Translation<br> of the Financial Statements originally issued in Spanish – See Note 45) | | (Figures<br> stated in thousands of pesos in constant currency as of March 31, 2023) | | | | Capital<br><br> stock | Non-capital<br><br>Contributions | | Other<br>Comprehensive<br> Income | | | | Earnings<br>Reserved | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | Changes | Notes | Outstanding<br><br>shares | Additional<br><br>paid-in <br> capital | Adjustments<br><br> to<br> Shareholders’ <br> Equity | Accumulated<br><br>foreign<br> currency<br> translation<br> difference in<br> Financial<br> Statements<br> conversion | | Other | | Legal | Other | Unappropriated<br><br>Retained<br> Earnings | Total<br><br>controlling<br> interests | | Total<br>Non-<br> controlling<br> interests | | Total<br><br> Equity | | | Restated amount at<br>the beginning of the fiscal year | | 639,413 | 12,429,781 | 213,790,374 | 1,423,115 | | 5,382,088 | | 114,859,656 | 174,022,226 | 43,162,129 | 565,708,782 | | 89,823 | | 565,798,605 | | | Total comprehensive<br>income of the period | | | | | | | | | | | | | | | | | | | - Net<br>income of the period | | | | | | | | | | | 12,298,038 | 12,298,038 | | (24,150 | ) | 12,273,888 | | | -<br>Other comprehensive Loss of the period | | | | | (527,321 | ) | (693,261 | ) | | | | (1,220,582 | ) | | | (1,220,582 | ) | | Amount<br>at the end of the period | | 639,413 | 12,429,781 | 213,790,374 | 895,794 | | 4,688,827 | | 114,859,656 | 174,022,226 | 55,460,167 | 576,786,238 | | 65,673 | | 576,851,911 | |
The notes 1 to 45 to the condensed consolidated interim Financial Statements and exhibits B to D, F to J, L, Q and R are an integral part of the condensed consolidated interim Financial Statements.
| 6 | Carlos A. Giovanelli <br> Vice Chairperson |
| --- | --- | | CONDENSED CONSOLIDATED INTERIM STATEMENT OF CASH FLOWS | | --- | | FOR THE THREE MONTH PERIODS ENDED MARCH 31, 2023 AND 2022 | | (Translation<br> of the Financial Statements originally issued in Spanish – See Note 45) | | (Figures<br> stated in thousands of pesos in constant currency as of March 31, 2023) | | Items | Notes | 03/31/2023 | | | 03/31/2022 | | | | --- | --- | --- | --- | --- | --- | --- | --- | | Cash flows from operating activities | | | | | | | | | Income of the period before income tax | | | 15,344,223 | | | 15,493,208 | | | Adjustment for the total monetary effect of the period | | | 88,386,677 | | | 59,076,917 | | | Adjustments to obtain cash flows from operating activities: | | | | | | | | | Amortization and depreciation | | | 4,893,735 | | | 4,478,094 | | | Allowance for loan losses | | | 3,478,584 | | | 1,521,901 | | | Difference in quoted prices of foreign currency | | | (26,112,178 | ) | | (14,458,059 | ) | | Other adjustments | | | 66,926,946 | | | 28,994,474 | | | Net increase / (decrease) from operating assets: | | | | | | | | | Debt Securities at fair value through profit or loss | | | (30,040,068 | ) | | 11,141,430 | | | Derivative Financial Instruments | | | 51,767 | | | 3,073 | | | Repo transactions | | | 36,269,964 | | | 74,471,421 | | | Loans and other financing | | | | | | | | | Non-financial Public Sector | | | 1,276,690 | | | 1,364,087 | | | Other Financial Entities | | | (728,113 | ) | | 2,133,014 | | | Non-financial Private Sector and Foreign<br> Residents | | | 26,844,834 | | | 66,496,873 | | | Other debt securities | | | 133,255,593 | | | (73,163,137 | ) | | Financial Assets delivered as guarantee | | | (223,619 | ) | | (22,874,762 | ) | | Equity instruments at fair value through profit or loss | | | (50,780 | ) | | 4,194,814 | | | Other assets | | | (11,717,089 | ) | | 31,893,538 | | | Net increase / (decrease) from operating liabilities: | | | | | | | | | Deposits | | | | | | | | | Non-financial Public Sector | | | (22,787,554 | ) | | 27,351,323 | | | Financial Sector | | | (101,866 | ) | | (167,275 | ) | | Non-financial Private Sector and Foreign<br> Residents | | | (89,687,257 | ) | | (39,303,833 | ) | | Liabilities at fair value through profit or loss | | | 1,836,497 | | | (2,917,457 | ) | | Derivative Financial Instruments | | | 97,512 | | | 9,221 | | | Repo transactions | | | 4,486,445 | | | 24,216,929 | | | Other liabilities | | | (16,439,378 | ) | | (45,783,685 | ) | | Income Tax Payments | | | (3,189,682 | ) | | (66,508 | ) | | Total cash from operating activities<br> (A) | | | 182,071,883 | | | 154,105,601 | |
| 7 | Carlos A. Giovanelli <br> Vice Chairperson |
| --- | --- | | CONDENSED CONSOLIDATED INTERIM STATEMENT OF CASH FLOWS | | --- | | FOR THE THREE MONTH PERIODS ENDED MARCH 31, 2023 AND 2022 | | (Translation<br> of the Financial Statements originally issued in Spanish – See Note 45) | | (Figures<br> stated in thousands of pesos in constant currency as of March 31, 2023) | | Items | Notes | 03/31/2023 | | | 03/31/2022 | | | | --- | --- | --- | --- | --- | --- | --- | --- | | Cash flows from investing activities | | | | | | | | | Payments: | | | | | | | | | Acquisition of PPE, intangible<br> assets and other assets | | | (5,216,939 | ) | | (3,127,918 | ) | | Total cash used in investing activities<br> (B) | | | (5,216,939 | ) | | (3,127,918 | ) | | Cash flows from financing activities | | | | | | | | | Payments: | | | | | | | | | Non-subordinated corporate bonds | | | (12,551 | ) | | | | | Subordinated Corporate Bonds | | | (52,758 | ) | | (42,375 | ) | | Other payments related to financing activities | | | (420,073 | ) | | (260,638 | ) | | Collections / Incomes: | | | | | | | | | Non subordinated corporate bonds | | | 76,678 | | | | | | Financing to local financial entities | | | 1,611,392 | | | 3,092,132 | | | Total cash used in financing activities<br> (C) | | | 1,202,688 | | | 2,789,119 | | | Effect of exchange rate fluctuations<br> (D) | | | 41,460,710 | | | 21,884,133 | | | Monetary effect on cash and cash<br> equivalents (E) | | | (176,918,828 | ) | | (112,920,711 | ) | | Net increase in cash and cash equivalents<br> (A+B+C+D+E) | | | 42,599,514 | | | 62,730,224 | | | Restated cash and cash equivalents<br> at the beginning of the period | 29 | | 912,904,561 | | | 734,930,146 | | | Cash and cash equivalents at the<br> end of the period | 29 | | 955,504,075 | | | 797,660,370 | |
The notes 1 to 45 to the condensed consolidated interim Financial Statements and exhibits B to D, F to J, L, Q and R are an integral part of the condensed consolidated interim Financial Statements.
| 8 | Carlos A. Giovanelli <br> Vice Chairperson |
| --- | --- |
NOTES TO THE CONDENSED CONSOLIDATED INTERIMFINANCIAL STATEMENTS
AS OF MARCH 31, 2023
(Translation of Financial Statements originally issued in Spanish – See Note 45)
(Figures stated in thousands of pesos in constant currency)
| 1. | CORPORATE INFORMATION |
|---|
Banco Macro SA (hereinafter, the Bank) is a stock corporation (sociedad anónima), organized in the Argentine Republic that offers traditional banking products and services to companies, including those companies operating in regional economies as well as to individuals, thus strengthening its goal to be a multiservice bank. In addition, through its subsidiaries, the Bank performs transactions as a trustee agent, manager and administrator of mutual funds and renders stock exchange services, electronic payments services and granting of guarantees.
Macro Compañía Financiera SA was created in 1977, as a non-banking financial institution. In May 1988, it received the authorization to operate as a commercial bank and was incorporated as Banco Macro SA. Subsequently, as a result of the merger process with other entities, it adopted other names (among them, Banco Macro Bansud SA) and since August 2006, Banco Macro SA.
The Bank’s shares have been publicly listed on Bolsas y Mercados Argentinos (BYMA) since November 1994; and as from March 24, 2006 they are listed on the New York Stock Exchange (NYSE). Additionally, on October 15, 2015, they were authorized to be listed on the Mercado Abierto Electrónico SA (MAE).
Since 1994, Banco Macro SA’s market strategy has mainly focused on the regional areas outside the Autonomous City of Buenos Aires (CABA, for its acronym in Spanish). Following this strategy, in 1996, Banco Macro SA started the process to acquire entities and assets and liabilities during the privatization of provincial and other banks.
During 2022, 2021 and 2020, the Bank made contributions in the company Play Digital SA for a total amount of 629,854 (not restated). On October 4, 2022, the Bank sold 22,112,340 shares for an amount of 61,889. In addition, on October 27, 2022, the Bank subscribed 178,911,312 shares for a face value of ARS 1 related to the abovementioned irrevocable capital contributions. As a consequence, the Bank’s new interest in this company is 9.6984%. Additionally, on February 23, 2023, the Bank made a new irrevocable capital contribution for an amount of 347,371 (not restated). The company’s purpose is to develop and market a payment solution linked to bank accounts held by financial system users in order to bring significant improvement to their payment experience.
On May 17, 2023, the Board of Directors approved the issuance of these condensed consolidated interim Financial Statements.
| 2. | OPERATIONS OF THE BANK |
|---|---|
| 2.1. | Agreement with the Misiones Provincial Government |
| --- | --- |
The Bank and the Misiones Provincial Government entered into a special-relationship agreement whereby the Bank was appointed, for a five-year term since January 1, 1996, as the Provincial Government’s exclusive financial agent as well as revenue collection and obligation payment agent.
On November 25, 1999, December 28, 2006 and October 1, 2018, extensions to such agreement were agreed upon, making it currently effective through December 31, 2029.
As of March 31, 2023 and December 31, 2022, the deposits held by the Misiones Provincial Government with the Bank amounted to 22,059,230 and 25,930,415 (including 1,943,607 and 1,966,939, related to court deposits), respectively.
| 2.2. | Agreement with the Salta Provincial Government |
|---|
The Bank and the Salta Provincial Government entered into a special-relationship agreement whereby the Bank was appointed, for a ten-year term since March 1, 1996, as the Provincial Government’s exclusive financial agent as well as revenue collection and obligation payment agent.
On February 22, 2005, and August 22, 2014, extensions to such agreements were agreed upon, making it currently effective through February 28, 2026.
As of March 31, 2023 and December 31, 2022, the deposits held by the Salta Provincial Government with the Bank amounted to 33,915,196 and 42,010,557 (including 4,216,984 and 4,208,077, related to court deposits), respectively.
| - 9 - |
| --- |
NOTES TO THE CONDENSED CONSOLIDATED INTERIMFINANCIAL STATEMENTS
AS OF MARCH 31, 2023
(Translation of Financial Statements originally issued in Spanish – See Note 45)
(Figures stated in thousands of pesos in constant currency)
| 2.3. | Agreement with the Jujuy Provincial Government |
|---|
The Bank and the Jujuy Provincial Government entered into a special-relationship agreement whereby the Bank was appointed, for a ten-year term since January 12, 1998, as the Provincial Government’s exclusive financial agent as well as revenue collection and obligation payment agent.
On April 29, 2005 and July 8, 2014, extensions to such agreement were agreed upon, making it currently effective through September 30, 2024.
As of March 31, 2023 and December 31, 2022, the deposits held by the Jujuy Provincial Government with the Bank amounted to 10,851,697 and 9,466,963 (including 2,653,042 and 2,707,938, related to court deposits), respectively.
| 2.4. | Agreement with the Tucumán Provincial Government |
|---|
The Bank acts as an exclusive financial agent and as revenue collection and obligation payment agent of the Tucumán Provincial Government, the Municipality of San Miguel de Tucumán and the Municipality of Yerba Buena. The services agreements with the Provincial and Municipal Governments are effective through years 2031, 2028 and 2025, respectively. As established in the original agreement, the service agreement with the Municipality of San Miguel de Tucumán was extended until 2028.
As of March 31, 2023 and December 31, 2022, the deposits held by the Tucumán Provincial Government, the Municipality of San Miguel de Tucumán and the Municipality of Yerba Buena with the Bank amounted to 30,349,699 and 42,221,773 (including 10,564,103 and 11,276,132, related to court deposits), respectively.
Additionally, the Bank granted loans to the Tucumán Provincial Government and the Municipality of Yerba Buena as of March 31, 2023 for an amount of 121,239, as well as to the Tucumán Provincial Government, the Municipality of San Miguel de Tucumán and the Municipality of Yerba Buena as of December 31, 2022 for an amount of 638,244.
| 3. | BASIS FOR THE PREPARATION OF THESE FINANCIAL STATEMENTS AND APPLICABLE ACCOUNTING STANDARDS |
|---|
Presentation basis
Applicable Accounting Standards
These condensed consolidated interim Financial Statements of the Bank were prepared in accordance with the accounting framework established by the Central Bank of Argentina (BCRA, for its acronym in Spanish) in its Communiqué “A” 6114 as supplemented. Except for the exceptions established by the BCRA, which are explained in the following paragraph, such framework is based on International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB) and adopted by the Argentine Federation of Professionals Councils in Economic Sciences (FACPCE, for its acronym in Spanish). The abovementioned international standards include the IFRS, the International Accounting Standards (IAS) and the interpretations developed by the IFRS Interpretations Committee (IFRIC) or former IFRIC (SIC).
The transitory exceptions and regulatory guidelines established by BCRA to the application of effective IFRS, that affect the preparation of these condensed consolidated interim Financial Statements are as follows:
| a) | According to Communiqué “A”<br> 6114, as supplemented, and in the convergence process through IFRS, the BCRA established<br> that since fiscal years beginning on or after January 1, 2020, financial institutions<br> defined as “Group A” by BCRA rules, in which the Bank is included, begin to apply<br> section 5.5 “Impairment” of the IFRS 9 “Financial Instruments” (sections<br> B5.5.1 to B5.5.55), except for the temporary exclusion for the debt securities of the non-financial<br> public sector established by BCRA Communiqué “A” 6847. As of the date<br> of issuance of these condensed consolidated interim Financial Statements, the Bank is in<br> the process of quantifying the effect of the full application of the abovementioned standard. |
|---|
| - 10 - |
| --- |
NOTES TO THE CONDENSED CONSOLIDATED INTERIMFINANCIAL STATEMENTS
AS OF MARCH 31, 2023
(Translation of Financial Statements originally issued in Spanish – See Note 45)
(Figures stated in thousands of pesos in constant currency)
| b) | In March 2022, the Bank’s<br> holdings in Prisma Medios de Pago SA (Prisma) were transferred. That company was measured<br> according to the Memorandums received from the BCRA on March 12 and 22, 2021, which<br> established specific guidelines related to the measurement at fair value of such holding.<br> If, for the fair value measurement purpose previously mentioned, IFRS had been applied,<br> the profit or loss for the three-month period ended March 31, 2022, should have been<br> modified. However, this situation did not generate differences in the shareholders’<br> equity as of March 31, 2022. |
|---|---|
| c) | Through Communiqué “A”<br> 7014 dated May 14, 2020, the BCRA established for financial institutions that received<br> debt securities of the public sector in a swap transaction, they must be initially recognized<br> at their carrying amount as of the date of the swap transaction, without assessing if they<br> qualify or not for derecognition under IFRS 9 standards and as a consequence, do not eventually<br> recognize the new instruments at the market value as provided by such IFRS (see also notes<br> 9 and 43 to the condensed consolidated interim Financial Statements). |
| --- | --- |
If IFRS 9 had applied, and according an estimation calculated by the Bank, the Statement of income for the period ended March 31, 2023, would have recorded a decrease in “other operating income” for an amount of 353,926 and an increase in “Net gain from measurement of financial instruments at fair value through profit or loss” for an amount of 734,550, and as a counterpart a decrease in “Other comprehensive income” of that period. These changes would not have resulted into modifications to the total shareholder equity as of that date nor the total comprehensive income for the three-month period ended March 31, 2023.
Except for what was mentioned in the previous paragraphs, the accounting policies applied by the Bank comply with the IFRS as currently approved and are applicable to the preparation of these condensed consolidated interim Financial Statements in accordance with the IFRS as adopted by the BCRA through Communiqué “A” 7642. Generally, the BCRA does not allow the anticipated application of any IFRS, unless otherwise expressly stated.
Basis for the preparation and consolidation
These condensed consolidated interim financial statements as of March 31, 2023, have been prepared in accordance with the accounting Framework established by the BCRA as mentioned in the previous section “Applicable accounting standards” which, particularly for condensed consolidated interim financial statements, is based on IAS 34 “Interim Financial Reporting”.
For the preparation of these condensed consolidated interim financial statements, in addition to section “measuring unit” of this note, the Bank has applied the basis for the preparation and consolidation, the accounting policies and the material accounting judgements, estimates and assumptions described in the consolidated financial statements for the fiscal year ended on December 31, 2022, already issued.
These condensed consolidated interim financial statements include all the necessary information for an appropriate understanding, by the users thereof, of the basis for the preparation and disclosure used therein as well as the relevant events and transactions occurred after the issuance of the last annual consolidated financial statements for the fiscal year ended on December 31, 2022, already issued. Nevertheless, the present condensed consolidated interim financial statements do not include all the information or all the disclosures required for the annual consolidated financial statements prepared in accordance with the IAS 1 “Presentation of Financial Statements”. Therefore, these condensed consolidated interim financial statements must be read together with the annual consolidated financial statements for the fiscal year ended December 31, 2022, already issued.
As of March 31, 2023 and December 31, 2022, the Bank has consolidated into its Financial Statements the Financial Statements of the following companies:
| Subsidiaries | Principal Place of Business | Country | Main Activity |
|---|---|---|---|
| Macro<br> Securities SAU (1) | Ave.<br> Eduardo Madero 1182 – CABA | Argentina | Stock<br> exchange services |
| Macro<br> Fiducia SAU | Ave.<br> Eduardo Madero 1182 – 2nd floor. CABA | Argentina | Services |
| - 11 - |
| --- |
NOTES TO THE CONDENSED CONSOLIDATED INTERIMFINANCIAL STATEMENTS
AS OF MARCH 31, 2023
(Translation of Financial Statements originally issued in Spanish – See Note 45)
(Figures stated in thousands of pesos in constant currency)
| Subsidiaries | Principal Place of Business | Country | Main Activity |
|---|---|---|---|
| Macro<br> Fondos SGFCISA | Ave.<br> Eduardo Madero 1182 – 24th floor, Office B–. CABA | Argentina | Management<br> and administration of mutual funds |
| Macro<br> Bank Limited (2) | Caves<br> Village, Building 8 Office 1 – West Bay St., Nassau | Bahamas | Banking<br> entity |
| Argenpay<br> SAU | Ave.<br> Eduardo Madero 1182 – CABA | Argentina | Electronic<br> payment services |
| Fintech<br> SGR (Structured entity) | San<br> Martín 140- 2nd floor –CABA | Argentina | Granting<br> of guarantees |
| (1) | Consolidated with Macro Fondos SGFCISA<br> (80.90% equity interest and voting rights). | ||
| --- | --- | ||
| (2) | Consolidated with Sud Asesores (ROU) SA<br> (100% voting rights – Equity interest: 27,066). |
As of March 31, 2023 and December 31, 2022, the Bank’s equity interest and voting rights in the companies it consolidates is as follows:
| Shares | Bank’s interest | Non-controlling interest | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Subsidiaries | Type | Number | Total capital<br><br> stock | Voting<br> <br>Rights | Total capital<br><br> stock | Voting<br> <br>rights | |||||||||
| Macro Securities SAU | Common | 12,885,683 | 100.00 | % | 100.00 | % | |||||||||
| Macro Fiducia SAU | Common | 47,387,236 | 100.00 | % | 100.00 | % | |||||||||
| Macro Fondos SGFCISA | Common | 327,183 | 100.00 | % | 100.00 | % | |||||||||
| Macro Bank Limited | Common | 39,816,899 | 100.00 | % | 100.00 | % | |||||||||
| Argenpay SAU (1) | Common | 341,200,000 | 100.00 | % | 100.00 | % | |||||||||
| Fintech SGR (Structured entity) | Common | 119,993 | 24.999 | % | 24.999 | % | 75.001 | % | 75.001 | % | |||||
| (1) | On January 30, the Bank made an irrevocable<br> capital contribution in this company for an amount of 330,000 (not restated). Additionally,<br> on March 15, 2023, the Bank made a new irrevocable capital contribution for 330,000. | ||||||||||||||
| --- | --- |
Total assets, liabilities and Shareholders’ equity of the Bank and all its subsidiaries as of March 31, 2023 and December 31, 2022 are as follows:
| Balances as of<br><br> 03/31/2023 | Banco Macro SA | Macro Bank<br><br> Limited | Macro Securities SAU | Macro Fiducia SAU | Argenpay SAU | Fintech SGR | Eliminations | Consolidated | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Assets | 2,376,493,731 | 22,740,899 | 54,801,620 | 230,661 | 3,288,282 | 4,984,788 | (32,411,140 | ) | 2,430,128,841 | ||||||||
| Liabilities | 1,743,792,643 | 16,688,913 | 40,385,818 | 4,783 | 1,797,482 | 4,829,452 | (10,187,836 | ) | 1,797,311,255 | ||||||||
| Equity attributable to the owners of the Bank | 632,701,088 | 6,051,986 | 13,647,494 | 225,878 | 1,490,800 | 155,336 | (21,571,494 | ) | 632,701,088 | ||||||||
| Equity attributable to non-controlling interests | 768,308 | (651,810 | ) | 116,498 |
| - 12 - |
| --- |
NOTES TO THE CONDENSED CONSOLIDATED INTERIMFINANCIAL STATEMENTS
AS OF MARCH 31, 2023
(Translation of Financial Statements originally issued in Spanish – See Note 45)
(Figures stated in thousands of pesos in constant currency)
| Balances as of<br><br> 12/31/2022 | Banco Macro SA | Macro Bank<br><br> Limited | Macro Securities SAU | Macro Fiducia SAU | Argenpay SAU | Fintech SGR | Eliminations | Consolidated | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Assets | 2,505,113,050 | 19,545,742 | 41,292,621 | 240,654 | 3,085,823 | 6,465,533 | (30,983,872 | ) | 2,544,759,551 | ||||||||
| Liabilities | 1,881,343,907 | 13,508,420 | 28,513,359 | 5,997 | 1,945,362 | 6,328,069 | (10,757,804 | ) | 1,920,887,310 | ||||||||
| Equity attributable to the owners of the Bank | 623,769,143 | 6,037,322 | 12,162,689 | 234,657 | 1,140,461 | 137,464 | (19,712,593 | ) | 623,769,143 | ||||||||
| Equity attributable to non-controlling interests | 616,573 | (513,475 | ) | 103,098 |
Going concern
The Bank’s management has made an assessment of its ability to continue as a going concern and is satisfied that it has the resources to continue in business for the foreseeable future. Furthermore, management is not aware of any material uncertainties that may cast significant doubt on the Bank’s ability to continue as a going concern. Therefore, these condensed consolidated interim Financial Statements continue to be prepared on the going concern basis.
Transcription into books
As of the date of issuance of these condensed consolidated interim Financial Statements, they are in the process of being transcribed into the Financial Statements (“Libro Balances”) of Banco Macro SA.
Figures expressed in thousands of pesos
These condensed consolidated interim Financial Statements disclose figures expressed in thousands of Argentine pesos in terms of purchasing power as of March 31, 2023, and are rounded up to the nearest amount in thousands of pesos, except as otherwise indicated (see section “Measuring unit” of this note).
Comparative information
The condensed consolidated interim statement of financial position as of March 31, 2023, is presented comparatively with year-end data of the immediately preceding fiscal year, while the statement of income, the statement of other comprehensive income, the statement of changes in shareholders’ equity and the statement of cash flows and cash equivalents for the three-month period ended on that date, are presented comparatively with data as of the same periods of the immediately preceding fiscal year.
The figures related to comparative information have been restated to consider the changes in the general purchasing power of the functional currency and, as a result, are stated in terms of the current measuring unit at the end of the reporting period (see the following section “Measuring unit”).
Measuring unit
These condensed consolidated interim Financial Statements have been restated for the changes in the general purchasing power of the functional currency (Argentine pesos) of the Bank, as of March 31, 2023, as established by IAS 29 “Financial Reporting in Hyperinflationary Economies” and considering, in addition, specific rules established by BCRA through Communiqués “A” 6651, 6849, as amended, which established the obligation to apply this method, for fiscal years beginning on or after January 1, 2020, and determined as the transition date December 31, 2018.
According to IFRS, the restatement of Financial Statements is needed when the functional currency is the currency of a hyperinflationary economy. To achieve consistency in identifying an economic environment of that nature, IAS 29 establishes (i) certain nonexclusive qualitative indicators, consisting in analyzing the general population behavior, prices, interest rates and wages with changes in price indexes and the loss of purchasing power, and (ii) as quantitative characteristic, which is the most used condition in practice, to test if a three-year cumulative inflation rate is around 100% or more. Due to miscellaneous macroeconomic factors, the three-year inflation rate exceeded that figure and the Argentine government goals and other available estimates also indicate that this trend will not be reversed in the short term.
| - 13 - |
| --- |
NOTES TO THE CONDENSED CONSOLIDATED INTERIMFINANCIAL STATEMENTS
AS OF MARCH 31, 2023
(Translation of Financial Statements originally issued in Spanish – See Note 45)
(Figures stated in thousands of pesos in constant currency)
The restatement was applied as if the economy had always been hyperinflationary, using a general price index that reflects changes in general purchasing power. To apply the restatement, a series of indexes were used, as prepared and published on a monthly basis by the Argentine Federation of Professional Councils of Economic Sciences (FACPCE, for its acronym in Spanish), which combines the consumer price index (CPI) on a monthly basis published by the Argentine Institute of Statistics and Censuses (INDEC, for its acronym in Spanish) since January 2017 (baseline month: December 2016) with the wholesale prices indexes published by the INDEC until that date. For the months of November and December 2015, for which the INDEC did not publish the wholesale price index (WPI) variation, the CPI variation for CABA was used.
Considering the abovementioned indexes, the inflation rate was 21.73% and 16.07% for the three-month periods ended March 31, 2023 and 2022, respectively, and 94.79% for the fiscal year ended on December 31, 2022.
Below is a description of the restatement mechanism provided by IAS 29 “Financial Reporting in Hyperinflationary Economies” and the restatement process for Financial Statements established by BCRA Communiqué “A” 6849, as supplemented:
Description of the main aspects of the restatement process for statements of financial position:
| (i) | Monetary items (the ones that are already<br> stated in terms of the current measuring unit) are not restated because they are already<br> expressed in terms of the monetary unit current at the end of the reporting period. In an<br> inflationary period, an entity holding monetary assets generates purchasing power loss and<br> holding monetary liabilities generates purchasing power gain, provided that the assets and<br> liabilities are not linked to an adjustment mechanism that offsets to some extent such effects.<br> The net gain or loss on a monetary basis is included in profit or loss of the period. |
|---|---|
| (ii) | Assets and liabilities subject to adjustments<br> based on specific agreements are adjusted in accordance with such agreements. |
| --- | --- |
| (iii) | Non-monetary items stated at current<br> cost at the end of the reporting period, are not restated for presentation purposes in the<br> statement of financial position, but the adjustment process must be completed to determine,<br> in terms of constant measurement unit, the income or loss produced by holding these non-monetary<br> items. |
| --- | --- |
| (iv) | Non-monetary items carried at historical<br> cost or at current cost at some earlier date before the reporting date, are restated by an<br> index that reflects the general level of price variation from the acquisition or revaluation<br> date to the closing date, proceeding then to compare the restated amounts of those assets<br> with their recoverable amounts. Income or loss of the period related to depreciation of property,<br> plant and equipment and amortization of Intangible Assets and other non-monetary assets cost<br> are determined over the new restated amounts. |
| --- | --- |
| (v) | When an entity capitalizes borrowing<br> cost in the non-monetary assets, the part of the borrowing cost that compensates for the<br> inflation during the same period is not capitalized. |
| --- | --- |
| (vi) | The restatement of non-monetary assets<br> in terms of a current measurement unit at the end of the reporting period, without an equivalent<br> adjustment for tax purposes generates a taxable temporary difference and a deferred income<br> tax liability is recognized and the contra account is recognized as profit or loss of the<br> period. When, beyond the restatement, there is a revaluation of non-monetary assets, the<br> deferred tax related to the restatement is recognized in profit or loss of the period and<br> deferred tax related to the revaluation is recognized in other comprehensive income of the<br> period. |
| --- | --- |
Description of the main aspects of the restatement process for statements of income and other comprehensive income:
| (i) | Income and expenses are restated from<br> the date the items were recorded, except for those income or loss items that reflect or include,<br> in their determination, the consumption of assets measured at the currency purchasing power<br> from a date prior to that which the consumption was recorded, which is restated using as<br> a basis the acquisition date of the assets related to the item, except for income or losses<br> arising from comparing the two measurements at currency purchasing power of different dates,<br> for which it requires to identify the compared amounts, to restate them separately and to<br> repeat the comparison, with the restated amounts. |
|---|---|
| (ii) | The gain or loss from monetary position<br> will be classified based on the item that generated it and will be separately disclosed reflecting<br> the inflationary effects over such items. |
| --- | --- |
| - 14 - |
| --- |
NOTES TO THE CONDENSED CONSOLIDATED INTERIMFINANCIAL STATEMENTS
AS OF MARCH 31, 2023
(Translation of Financial Statements originally issued in Spanish – See Note 45)
(Figures stated in thousands of pesos in constant currency)
Description of the main aspects of the restatement process for the statements of changes in shareholders’ equity:
| (i) | As the transition date (December 31,<br> 2018), the Bank has applied the following procedures: |
|---|---|
| (a) | The components of equity, except the<br> ones mentioned below, were restated from the dates the components were contributed or otherwise<br> arose according to BCRA Communiqué “A” 6849, for each item. |
| --- | --- |
| (b) | Earnings reserved, including the special<br> reserve for the first-time application of IFRS, were stated at nominal value at the transition<br> date (legal amount not restated). |
| --- | --- |
| (c) | The unappropriated retained earnings<br> were determined as a difference between the restated net asset at the transition date and<br> the other components of equity, restated as disclosed in the abovementioned paragraphs. |
| --- | --- |
| (d) | The accumulated balances of other comprehensive<br> income were recalculated in terms of measuring unit current at the transition date. |
| --- | --- |
| (ii) | After the restatement on the abovementioned<br> transition date in (i) above, all equity components are restated by applying a general<br> price index as mentioned before from the beginning of the fiscal year and each variation<br> of those components is restated from the contribution date or from the moment it was produced<br> in any other way, and the accumulated OCI balances are redetermined according to the items<br> that give rise to it. |
| --- | --- |
Description of the main aspects of the restatement process for the statement of cash flows:
| (i) | All items are restated in terms of the measuring unit current at<br> the end of the reporting period. |
|---|---|
| (ii) | The monetary gain or losses generated<br> by cash and cash equivalents are separately disclosed in the statement of cash flows after<br> the cash flow from operating investment activities and financing activities, in a separate<br> and independent line, under the description “Monetary effect on cash and cash equivalents”. |
| --- | --- |
Accountingjudgments, estimates and assumptions
The preparation of these condensed consolidated interim Financial Statements requires the Bank’s Management to consider significant accounting judgments, estimates and assumptions that impact on the reported assets and liabilities, income, revenues and expenses, as well as the assessment and disclosure of contingent assets and liabilities, as of the end of the period. The Bank’s reported amounts are based on the best estimate regarding the probability of occurrence of different future events and, therefore, the uncertainties associated with the estimates and assumptions made by the Bank’s Management may give rise in the future to final amounts that may differ from those estimates and may require material adjustments to the reported amounts of the affected assets and liabilities.
The Bank applies the same accounting judgments, estimates and assumptions described in note 3 section “accounting judgments, estimates and assumptions” to the consolidated Financial Statements as of December 31, 2022, already issued.
New standards adopted in thefiscal year
For the fiscal year beginning on January 1, 2023, the following amendments to IFRS are effective and they did not have a material impact on these condensed consolidated interim Financial Statements:
Amendments to IAS 1 “Presentation of Financial Statements” and IFRS Practice Statement 2 – Disclosures to accounting policies:
The amendments require that an entity discloses its material accounting policies, instead of its significant accounting policies. They also explain how an entity can identify material accounting policy information and give examples of when accounting policy information is likely to be material. Therefore, a guidance with explanations and examples denominated “four-step materiality process” was as described in the Practice Statement 2.
This amendment did not have a material impact on the disclosures of these condensed consolidated interim financial statements or the annual consolidated Financial Statements.
| - 15 - |
| --- |
NOTES TO THE CONDENSED CONSOLIDATED INTERIMFINANCIAL STATEMENTS
AS OF MARCH 31, 2023
(Translation of Financial Statements originally issued in Spanish – See Note 45)
(Figures stated in thousands of pesos in constant currency)
Amendments to IAS 8 “Accounting policies, changes in accounting estimates and Errors” – Definition of Accounting Estimates:
The amendments clarify the distinction between changes in accounting estimates and changes in accounting policies and the correction of errors. Also, they clarify how entities use measurement techniques and inputs to develop accounting estimates. The amended standard clarifies that the effects on an accounting estimate of a change in an input or a change in a measurement technique are changes in accounting estimates if they do not result from the correction of prior period errors. The previous definition of a change in accounting estimate specified that changes in accounting estimates may result from new information or new developments. Therefore, such changes are not corrections of errors. This amendment is applicable as of January 1, 2023.
This amendment would be applicable if the Bank performs a change in an accounting estimate, but it is not expected to have a material impact on the Financial Statements.
Amendments to IAS 12 “Income Tax” – Deferred Tax related to Assets and Liabilities arising from a Single Transaction:
The IASB issued amendments to IAS 12, which narrow the scope of the initial recognition exception under IAS 12, so that it no longer applies to transactions that give rise to equal taxable and deductible temporary differences. The amendments clarify that where payments that settle a liability are deductible for tax purposes, it is a matter of professional judgment (having considered the applicable tax law) whether such deductions are attributable for tax purposes to the liability recognized in the Financial Statements (and interest expense) or to the related asset component (and interest expense). Professional judgment is important in determining whether any temporary differences exist on initial recognition of the asset and liability.
This amendment did not have a material impact on the Financial Statements.
New pronouncements
Pursuant to Communiqué “A” 6114 of the BCRA, as new IFRS are approved and existing IFRS are amended or revoked and, once these changes are approved through the notices of approval issued by the FACPCE, the BCRA shall issue a statement on the approval thereof for financial entities. Generally, financial institutions shall not apply any IFRS in advance, except as specifically authorized at the time of the adoption thereof.
The new and amended standards and interpretation that are issued, but not yet effective, up to the date of issuance of these condensed consolidated interim Financial Statements are disclosed below. The Bank intends to adopt these standards, if applicable, when they become effective.
| a) | Amendments to IFRS 16 “Leases”<br> – Sale and Leaseback: the amendment to IFRS 16 specifies the requirements that a seller-lessee<br> uses in measuring the lease liability arising in a sale and leaseback transaction, to ensure<br> the seller-lessee does not recognize any amount of the gain or loss that relates to the right<br> of use it retains. The amendment does not prescribe specific measurement requirements for<br> lease liabilities arising from a leaseback. The initial measurement of the lease liability<br> arising from a leaseback may result in a seller-lessee determining ‘lease payments’<br> that are different from the general definition of lease payments. The seller lessee will<br> need to develop and apply an accounting policy that results in information that is relevant<br> and reliable in accordance with IAS 8. This amendment is applicable as of January 1,<br> 2024. The Bank does not expect this standard to have a material impact on the Financial Statements. |
|---|---|
| 4. | CONTINGENT TRANSACTIONS |
| --- | --- |
In order to meet specific financial needs of customers, the Bank’s credit policy also includes, among others, the granting of guarantees, securities, bonds, letters of credit and documentary credits. The Bank is also exposed to overdrafts and unused agreed credits on credit cards of the Bank. Since they imply a contingent obligation for the Bank, they expose the Bank to credit risks other than those recognized in the statement of financial position and, therefore, they are an integral part of the total risk of the Bank.
As of March 31, 2023 and December 31, 2022, the Bank maintains the following maximum exposures to credit risk related to this type of transactions:
| - 16 - |
| --- |
NOTES TO THE CONDENSED CONSOLIDATED INTERIMFINANCIAL STATEMENTS
AS OF MARCH 31, 2023
(Translation of Financial Statements originally issued in Spanish – See Note 45)
(Figures stated in thousands of pesos in constant currency)
| Composition | 03/31/2023 | 12/31/2022 | ||||
|---|---|---|---|---|---|---|
| Undrawn commitments of credit cards and checking accounts | 693,868,495 | 814,281,350 | ||||
| Guarantees granted (1) | 10,606,360 | 8,775,469 | ||||
| Overdraft and unused agreed commitments (1) | 2,373,837 | 746,577 | ||||
| Subtotal | 706,848,692 | 823,803,396 | ||||
| Less: Allowance for Expected Credit Losses (ECL) | (821,300 | ) | (848,191 | ) | ||
| Total | 706,027,392 | 822,955,205 | ||||
| (1) | Includes transactions not covered by<br> BCRA debtor classification standard. The guarantees granted include an amount of 31,303 and<br> 44,933 as of March 31, 2023 and December 31, 2022, respectively. The Overdraft<br> and unused agreed commitments include an amount of 159,684 and 552,065 as of March 31,<br> 2023 and December 31, 2022, respectively. | |||||
| --- | --- |
Risks related to the abovementioned contingent transactions have been assessed and are controlled within the framework of the Bank’s credit risk policy, as described in note 45 to the consolidated Financial Statements as of December 31, 2022, already issued.
Disclosures related to the allowance for ECL are detailed in item 8.5 of note 8 “Loss allowance for expected credit losses on credit exposures not measured at fair value through profit or loss”.
| 5. | DEBT SECURITIES AT FAIR VALUE THROUGH PROFIT OR LOSS |
|---|
The composition of debt securities at fair value through profit or loss as of March 31, 2023 and December 31, 2022 is as follows:
| Composition | 03/31/2023 | 12/31/2022 | ||
|---|---|---|---|---|
| Government securities (1) | 278,158,758 | 249,348,304 | ||
| Private securities | 8,802,456 | 7,572,842 | ||
| Total | 286,961,214 | 256,921,146 | ||
| (1) | During March 2023, the Bank decided<br> to enter into a voluntary debt swap in terms of Article 11 of Decree No. 331/2022<br> of the Argentine Ministry of Economy. The instruments that entered into that swap are as<br> follows: | |||
| --- | --- | |||
| · | Letters<br> of National Estate in pesos adjusted by CER – Maturity: 05-19-2023 (X19Y3) for a nominal<br> amount of 1,145,882,575. | |||
| --- | --- | |||
| · | Letters<br> of National Estate in pesos at discount – Maturity: 05-31-2023 (S31Y3) for a nominal<br> amount of 295,000,000. | |||
| --- | --- | |||
| · | Letters<br> of National Estate in pesos at discount – Maturity: 04-28-2023 (S28A3) for a nominal<br> amount of 210,000,000. | |||
| --- | --- | |||
| · | Letters<br> of National Estate in pesos at discount – Maturity: 03-31-2023 (S31M3) for a nominal<br> amount of 200,000,000. | |||
| --- | --- | |||
| · | Letters<br> of National Estate in pesos adjusted by CER – Maturity: 06-16-2023 (X16J3) for a nominal<br> amount of 159,305,395. | |||
| --- | --- |
In addition, with almost all the instruments received, the Bank purchased put options with the BCRA. These options provide to the Bank with the opportunity to sell (put options) the underlying asset at a value established by the BCRA’s rules. In this transaction, the options could be exercised up to one day before the maturity of the underlying instrument. As of March 31, 2023, the notional value amounted to 75,638,514 (see Exhibits A and O to the condensed separate interim Financial Statements).
| - 17 - |
| --- |
NOTES TO THE CONDENSED CONSOLIDATED INTERIMFINANCIAL STATEMENTS
AS OF MARCH 31, 2023
(Translation of Financial Statements originally issued in Spanish – See Note 45)
(Figures stated in thousands of pesos in constant currency)
| 6. | OTHER FINANCIAL ASSETS |
|---|
The composition of the other financial assets as of March 31, 2023 and December 31, 2022 is as follows:
| Composition | 03/31/2023 | 12/31/2022 | ||||
|---|---|---|---|---|---|---|
| Sundry debtors (see note 10) | 30,919,713 | 32,143,140 | ||||
| Receivables from other spot sales pending settlement | 24,370,199 | 12,472,529 | ||||
| Receivables from spot sales of foreign currency pending settlement | 21,026,477 | 19,483,787 | ||||
| Private securities | 5,406,381 | 5,488,019 | ||||
| Receivables from spot sales of government securities pending settlement | 469,531 | 594,779 | ||||
| Other | 407,315 | 465,806 | ||||
| Subtotal | 82,599,616 | 70,648,060 | ||||
| Less: Allowances for ECL | (110,762 | ) | (110,826 | ) | ||
| Total | 82,488,854 | 70,537,234 |
Disclosures related to allowance for ECL are detailed in item 8.4 of note 8 “Loss allowance for expected credit losses on credit exposures not measured at fair value through profit or loss”.
| 7. | LOANS AND OTHER FINANCING |
|---|
The composition of loans and other financing as of March 31, 2023 and December 31, 2022 is as follows:
| Composition | 03/31/2023 | 12/31/2022 | ||||
|---|---|---|---|---|---|---|
| Non-financial Public Sector (1) | 1,409,863 | 2,686,553 | ||||
| Other Financial Entities | 1,856,903 | 1,128,790 | ||||
| Other Financial Entities | 1,869,278 | 1,138,700 | ||||
| Less: allowance for ECL | (12,375 | ) | (9,910 | ) | ||
| Non-financial Private Sector and Foreign Residents | 694,519,204 | 724,875,793 | ||||
| Overdrafts | 53,795,511 | 59,953,253 | ||||
| Documents | 100,434,421 | 99,545,123 | ||||
| Mortgage loans | 71,414,283 | 75,359,519 | ||||
| Pledge loans | 10,968,997 | 11,663,515 | ||||
| Personal loans | 160,793,464 | 173,504,702 | ||||
| Credit cards | 216,178,489 | 232,239,948 | ||||
| Financial leases | 1,345,129 | 1,688,186 | ||||
| Other | 93,597,984 | 84,305,044 | ||||
| Less: allowance for ECL | (14,009,074 | ) | (13,383,497 | ) | ||
| Total | 697,785,970 | 728,691,136 |
(1) As explained in note 3, ECL are not calculated to public sector exposures.
| - 18 - |
| --- |
NOTES TO THE CONDENSED CONSOLIDATED INTERIMFINANCIAL STATEMENTS
AS OF MARCH 31, 2023
(Translation of Financial Statements originally issued in Spanish – See Note 45)
(Figures stated in thousands of pesos in constant currency)
| 8. | LOSS ALLOWANCE FOR EXPECTED CREDIT LOSSES ON CREDIT EXPOSURES NOT MEASURED AT FAIR VALUE THROUGH PROFIT OR LOSS |
|---|
The Bank recognizes a loss allowance for expected credit losses on all credit exposures not measured at fair value through profit or loss, like debt instruments measured at amortized cost, debt instruments measured at fair value through other comprehensive income, loan commitments and financial guarantee contracts (not measured at fair value through profit or loss), contract assets and lease receivables.
Note 11 discloses financial assets measured at fair value on a recurring basis and financial assets not recognized at fair value. This classification is made pursuant to what was detailed in note 3 “Basis for the preparation of these Financial Statements and applicable accounting standards”, to the consolidated Financial Statements as of December 31, 2022, already issued. In addition, the note 11 explains the information related to the valuation process.
Moreover, considering the temporary exclusion established by BCRA mentioned in note 3 “Applicable accounting standards” the Bank applies the impairment requirements for the recognition and measurement of a loss allowance for financial assets measured at amortized cost or at fair value through other comprehensive income, except for public sector exposures. In addition, the Bank applies the impairment requirements for guarantees granted, undrawn commitments of credit cards and checking accounts, letter of credits, which are not recognized in the consolidated statement of financial position.
For the purpose of assessing the Bank’s credit risk exposure and identifying material credit risk concentration, disclosures regarding credit risk of financial assets and items not recognized in the statement of financial position are as follows:
8.1 Loans and other financing measured at amortized cost
According to the nature of the information to be disclosed and the loan characteristics, the Bank groups them as follows:
| Composition | 03/31/2023 | 12/31/2022 | ||||
|---|---|---|---|---|---|---|
| Loans and other financing | 711,807,419 | 742,084,543 | ||||
| Individual assessment | 128,085,568 | 132,607,889 | ||||
| Collective assessment | 583,721,851 | 609,476,654 | ||||
| Less: Allowance for ECL (1) | (14,021,449 | ) | (13,393,407 | ) | ||
| Total | 697,785,970 | 728,691,136 |
(1) As explained in note 3, ECL are not calculated to public sector exposures.
As explained in note 45.1.3 “Additional Forward-looking allowances based on expert credit judgment”, section “Adjustment for uncertainty about conditions of accessing loans to MIPYMES”, to the consolidated Financial Statements as of December 31, 2022, already issued, the Bank decided to record an adjustment on a forward-looking basis, resulting from an estimate of the incremental effect of the allowances for ECL aimed at covering an uncertainty scenario about small and medium-sized companies credit access conditions. As of March 31, 2023 and December 31, 2022, the estimated amounts were 1,399,000 and 1,843,028, respectively.
The following table shows the credit quality and the carrying amount of credit risk, based on the Bank’s credit risk rating system, the probability of default (PD) and the year-end stage classification, taking into account what was mentioned in the previous paragraph. The amounts are presented gross of the impairment allowances.
| - 19 - |
| --- |
NOTES TO THE CONDENSED CONSOLIDATED INTERIMFINANCIAL STATEMENTS
AS OF MARCH 31, 2023
(Translation of Financial Statements originally issued in Spanish – See Note 45)
(Figures stated in thousands of pesos in constant currency)
| 03/31/2023 | ||||||
|---|---|---|---|---|---|---|
| Internal<br> rating grade | Range PD | Stage 1 | Stage 2 | Stage 3 | Total | % |
| Performing | 669,896,896 | 18,526,986 | 688,423,882 | 96.72 | ||
| High grade | 0.00%<br> - 3.50% | 619,187,412 | 3,594,544 | 622,781,956 | 87.50 | |
| Standard grade | 3.51%<br> - 7.00% | 31,564,962 | 3,132,122 | 34,697,084 | 4.87 | |
| Sub-standard grade | 7.01%<br> - 33.00% | 19,144,522 | 11,800,320 | 30,944,842 | 4.35 | |
| Past<br> due but not impaired (1) | 33.01%<br> - 99.99% | 5,152,777 | 10,722,809 | 15,875,586 | 2.23 | |
| Impaired | 100% | 7,507,951 | 7,507,951 | 1.05 | ||
| Total | 675,049,673 | 29,249,795 | 7,507,951 | 711,807,419 | 100 | |
| % | 94.84 | 4.11 | 1.05 | 100 | ||
| 12/31/2022 | ||||||
| --- | --- | --- | --- | --- | --- | --- |
| Internal<br> rating grade | Range PD | Stage 1 | Stage 2 | Stage 3 | Total | % |
| Performing | 706,844,418 | 15,321,248 | 722,165,666 | 97.32 | ||
| High grade | 0.00%<br> - 3.50% | 657,479,908 | 3,002,585 | 660,482,493 | 89.00 | |
| Standard<br> grade | 3.51%<br> - 7.00% | 29,157,764 | 3,708,423 | 32,866,187 | 4.43 | |
| Sub-standard<br> grade | 7.01%<br> - 33.00% | 20,206,746 | 8,610,240 | 28,816,986 | 3.89 | |
| Past<br> due but not impaired (1) | 33.01%<br> - 99.99% | 4,610,193 | 9,207,264 | 13,817,457 | 1.86 | |
| Impaired | 100% | 6,101,420 | 6,101,420 | 0.82 | ||
| Total | 711,454,611 | 24,528,512 | 6,101,420 | 742,084,543 | 100 | |
| % | 95.87 | 3.31 | 0.82 | 100 | ||
| (1) | It also includes transactions, under collective assessment, which<br> are more than 5 days past due independently of the PD range assigned. | |||||
| --- | --- |
8.1.1 Loans on an individual assessment
The table below shows the credit quality and the debt balance to credit risk of commercial loans by grade on the Bank’s internal credit rating system, PD range and year-end stage classification. The Bank’s internal credit rating systems and the evaluation and measurement approaches are explained in note 45, “Credit risk” section, to the consolidated Financial Statements as of December 31, 2022, already issued.
| 03/31/2023 | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Internal<br> rating grade | Range<br> PD | Stage<br> 1 | Stage<br> 2 | Stage<br> 3 | Total | % | |||||
| Performing | 123,468,086 | 3,001,393 | 126,469,479 | 98.74 | |||||||
| High grade | 0.00% - 3.50% | 112,642,750 | 1,464,120 | 114,106,870 | 89.08 | ||||||
| Standard grade | 3.51% - 7.00% | 4,172,450 | 740,759 | 4,913,209 | 3.84 | ||||||
| Sub-standard grade | 7.01% - 33.00% | 6,652,886 | 796,514 | 7,449,400 | 5.82 | ||||||
| Past due but not impaired | 33.01% - 99.99% | ||||||||||
| Impaired | 100% | 1,616,089 | 1,616,089 | 1.26 | |||||||
| Total | 123,468,086 | 3,001,393 | 1,616,089 | 128,085,568 | 100 | ||||||
| % | 96.40 | 2.34 | 1.26 | 100 |
| - 20 - |
| --- |
NOTES TO THE CONDENSED CONSOLIDATED INTERIMFINANCIAL STATEMENTS
AS OF MARCH 31, 2023
(Translation of Financial Statements originally issued in Spanish – See Note 45)
(Figures stated in thousands of pesos in constant currency)
| 12/31/2022 | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Internal<br> rating grade | Range<br> PD | Stage<br> 1 | Stage<br> 2 | Stage<br> 3 | Total | % | |||||
| Performing | 127,805,250 | 3,128,751 | 130,934,001 | 98.74 | |||||||
| High grade | 0.00% - 3.50% | 119,430,793 | 1,510,630 | 120,941,423 | 91.20 | ||||||
| Standard grade | 3.51% - 7.00% | 4,434,926 | 762,988 | 5,197,914 | 3.92 | ||||||
| Sub-standard grade | 7.01% - 33.00% | 3,939,531 | 855,133 | 4,794,664 | 3.62 | ||||||
| Past due but not impaired | 33.01% - 99.99% | ||||||||||
| Impaired | 100% | 1,673,888 | 1,673,888 | 1.26 | |||||||
| Total | 127,805,250 | 3,128,751 | 1,673,888 | 132,607,889 | 100 | ||||||
| % | 96.38 | 2.36 | 1.26 | 100 |
8.1.2 Loans on a collective assessment
The table below shows the credit quality and the debt balance to credit risk of loans portfolio under collective assessment, by grade of credit risk classification based on the Bank’s internal credit rating system, PD range and year-end stage classification. The Bank’s internal credit rating systems and the evaluation and measurement approaches are explained in note 45, “Credit risk” section to the consolidated Financial Statements as of December 31, 2022, already issued.
| 03/31/2023 | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Internal<br> rating grade | Range<br> PD | Stage<br> 1 | Stage<br> 2 | Stage<br> 3 | Total | % | |||||
| Performing | 546,428,810 | 15,525,593 | 561,954,403 | 96.27 | |||||||
| High grade | 0.00% - 3.50% | 506,544,662 | 2,130,424 | 508,675,086 | 87.14 | ||||||
| Standard grade | 3.51% - 7.00% | 27,392,512 | 2,391,363 | 29,783,875 | 5.10 | ||||||
| Sub-standard grade | 7.01% - 33.00% | 12,491,636 | 11,003,806 | 23,495,442 | 4.03 | ||||||
| Past due but not impaired<br> (1) | 33.01% - 99.99% | 5,152,777 | 10,722,809 | 15,875,586 | 2.72 | ||||||
| Impaired | 100% | 5,891,862 | 5,891,862 | 1.01 | |||||||
| Total | 551,581,587 | 26,248,402 | 5,891,862 | 583,721,851 | 100 | ||||||
| % | 94.49 | 4.50 | 1.01 | 100 |
| - 21 - |
| --- |
NOTES TO THE CONDENSED CONSOLIDATED INTERIMFINANCIAL STATEMENTS
AS OF MARCH 31, 2023
(Translation of Financial Statements originally issued in Spanish – See Note 45)
(Figures stated in thousands of pesos in constant currency)
| 12/31/2022 | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Internal<br> rating grade | Range<br> PD | Stage<br> 1 | Stage<br> 2 | Stage<br> 3 | Total | % | |||||
| Performing | 579,039,168 | 12,192,497 | 591,231,665 | 97.01 | |||||||
| High grade | 0.00% - 3.50% | 538,049,115 | 1,491,955 | 539,541,070 | 88.53 | ||||||
| Standard grade | 3.51% - 7.00% | 24,722,838 | 2,945,435 | 27,668,273 | 4.54 | ||||||
| Sub-standard grade | 7.01% - 33.00% | 16,267,215 | 7,755,107 | 24,022,322 | 3.94 | ||||||
| Past due but not impaired<br> (1) | 33.01% - 99.99% | 4,610,193 | 9,207,264 | 13,817,457 | 2.27 | ||||||
| Impaired | 100% | 4,427,532 | 4,427,532 | 0.72 | |||||||
| Total | 583,649,361 | 21,399,761 | 4,427,532 | 609,476,654 | 100 | ||||||
| % | 95.76 | 3.51 | 0.73 | 100 | |||||||
| (1) | It also includes transactions which are more than 5 days past due<br> independently of the PD range assigned. | ||||||||||
| --- | --- |
8.2 Other debt securities at amortized cost
For purchased corporate bonds, PD and LGD parameters calculated for loan exposures of those issuers were used. The corporate bonds’ EAD is considered equal to the debt balance.
For financial trusts at amortized cost, the criteria that was used in the calculation of ECL is based on credit risk ratings given by a credit rating agency for each type of debt securities that compose each financial trust. That is, the factor to be used will vary in relation to the holding debt securities class (A or B). It is assumed that the EAD is equal to the debt balance.
The table below shows the exposures gross of impairment allowances by stage:
| 03/31/2023 | |||||||
|---|---|---|---|---|---|---|---|
| Composition | Stage 1 | Stage 2 | Stage 3 | Total | % | ||
| Corporate bonds | 1,225,436 | 1,225,436 | 78.88 | ||||
| Financial trust | 328,133 | 328,133 | 21.12 | ||||
| Total | 1,553,569 | 1,553,569 | 100 | ||||
| % | 100 | 100 | |||||
| 12/31/2022 | |||||||
| --- | --- | --- | --- | --- | --- | --- | --- |
| Composition | Stage 1 | Stage 2 | Stage 3 | Total | % | ||
| Corporate bonds | 1,264,809 | 1,264,809 | 77.11 | ||||
| Financial trust | 375,379 | 375,379 | 22.89 | ||||
| Total | 1,640,188 | 1,640,188 | 100 | ||||
| % | 100 | 100 |
The related ECL for corporate bonds as of March 31, 2023 and December 31, 2022 amounted to 1,617 and 675, respectively. The ECL related to financial trusts as of March 31, 2023 and December 31, 2022 amounted to 192 and 294, respectively.
| - 22 - |
| --- |
NOTES TO THE CONDENSED CONSOLIDATED INTERIMFINANCIAL STATEMENTS
AS OF MARCH 31, 2023
(Translation of Financial Statements originally issued in Spanish – See Note 45)
(Figures stated in thousands of pesos in constant currency)
8.3 Government securities at amortized cost or fair value through OCI
This group includes federal government securities, provincial or BCRA instruments measured at amortized cost or fair value through OCI. For these assets, an individual assessment of the related parameters was performed. However, under domestic standards and according to Communiqué “A” 6847, no ECL was calculated for these instruments.
A breakdown of these investments and their characteristics is disclosed in note 9.
8.4 Other financial assets
The table below shows the exposures gross of impairment allowances by stage:
| 03/31/2023 | ||||||||
|---|---|---|---|---|---|---|---|---|
| Composition | Stage 1 | Stage 2 | Stage 3 | Total | % | |||
| Other financial assets | 77,193,235 | 77,193,235 | 100 | |||||
| Total | 77,193,235 | 77,193,235 | 100 | |||||
| % | 100 | 100 | ||||||
| 12/31/2022 | ||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Composition | Stage 1 | Stage 2 | Stage 3 | Total | % | |||
| Other financial assets | 65,160,042 | 65,160,042 | 100 | |||||
| Total | 65,160,042 | 65,160,042 | 100 | |||||
| % | 100 | 100 |
The ECL related to these types of instruments amounted to 110,762 and 110,826 as of March 31, 2023 and December 31, 2022, respectively, including the ECL related to the payments to be collected for the transaction mentioned in note 10.
8.5 Loans commitment
The table below shows the exposures gross of impairment allowances by stage:
| 03/31/2023 | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Composition | Stage 1 | Stage 2 | Stage 3 | Total | % | |||||
| Undrawn commitments of credit cards and checking accounts | 680,011,094 | 13,855,762 | 1,639 | 693,868,495 | 98.19 | |||||
| Guarantees granted | 10,575,057 | 10,575,057 | 1.50 | |||||||
| Overdraft and unused agreed commitments | 2,214,153 | 2,214,153 | 0.31 | |||||||
| Total | 692,800,304 | 13,855,762 | 1,639 | 706,657,705 | 100 | |||||
| % | 98.04 | 1.96 | 100 |
| - 23 - |
| --- |
NOTES TO THE CONDENSED CONSOLIDATED INTERIMFINANCIAL STATEMENTS
AS OF MARCH 31, 2023
(Translation of Financial Statements originally issued in Spanish – See Note 45)
(Figures stated in thousands of pesos in constant currency)
| 12/31/2022 | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Composition | Stage 1 | Stage 2 | Stage 3 | Total | % | |||||
| Undrawn commitments of credit cards and checking accounts | 801,135,914 | 13,143,609 | 1,828 | 814,281,351 | 98.92 | |||||
| Guarantees granted | 8,730,536 | 8,730,536 | 1.06 | |||||||
| Overdraft and unused agreed commitments | 194,512 | 194,512 | 0.02 | |||||||
| Total | 810,060,962 | 13,143,609 | 1,828 | 823,206,399 | 100 | |||||
| % | 98.40 | 1.60 | 100 |
The related ECL for undrawn commitments of credit cards and checking accounts as of March 31, 2023 and December 31, 2022 amounted to 756,550 and 792,778, respectively. The ECL related to guarantees granted as of March 31, 2023 and December 31, 2022 amounted to 53,997 and 55,324, respectively. The ECL related to overdraft and unused agreed commitments as of March 31, 2023 and December 31, 2022 amounted to 10,753 and 89, respectively.
In exhibit R “Value adjustment for credit losses – Allowance for uncollectibility risk”, the ECL movements by portfolio and products are also disclosed.
| 9. | OTHER DEBT SECURITIES |
|---|
The composition of other debt securities as of March 31, 2023 and December 31, 2022 is as follows:
| Composition | 03/31/2023 | 12/31/2022 | ||
|---|---|---|---|---|
| At fair value through OCI | ||||
| Government securities | 75,867,434 | 158,837,208 | ||
| Government securities – Foreign | 12,951,078 | 9,046,311 | ||
| Total at fair value through OCI (1) | 88,818,512 | 167,883,519 | ||
| At amortized cost | ||||
| Central Bank of Argentina Bills | 665,672,546 | 652,929,895 | ||
| Government securities | 57,948,475 | 60,594,002 | ||
| Private securities | 1,551,760 | 1,639,219 | ||
| Central Bank of Argentina Notes | 14,736,836 | |||
| Total at amortized cost | 725,172,781 | 729,899,952 | ||
| Total | 813,991,293 | 897,783,471 | ||
| (1) | During January 2023, the Bank decided<br> to enter into a voluntary debt swap in terms of Article 11 of Decree No. 331/2022<br> of the Argentine Ministry of Economy. The instruments that entered into that swap are as<br> follows: | |||
| --- | --- | |||
| · | Letters<br> of National Estate in pesos adjusted by CER – Maturity: 02-17-2023 (X17F3) for a nominal<br> amount of 20,900,000,000. | |||
| --- | --- | |||
| · | Letters<br> of National Estate in pesos at discount – Maturity: 02-28-2023 (S28F3) for a nominal<br> amount of 12,893,000,000. | |||
| --- | --- | |||
| · | Letters<br> of National Estate in pesos adjusted by CER – Maturity: 01-20-2023 for a nominal<br> amount of 290,000,000. | |||
| --- | --- |
As mentioned in note 5, during March 2023, the following instruments entered into the swap:
| · | Letters<br> of National treasury in pesos at discount – Maturity: 06-30-2023 (S3OJ3) for a nominal<br> amount of 26,640,975,851. |
|---|
| - 24 - |
| --- |
NOTES TO THE CONDENSED CONSOLIDATED INTERIMFINANCIAL STATEMENTS
AS OF MARCH 31, 2023
(Translation of Financial Statements originally issued in Spanish – See Note 45)
(Figures stated in thousands of pesos in constant currency)
| · | Letters of National Estate in pesos adjusted<br>by CER – Maturity: 06-16-2023 (X16J3) for a nominal amount of 4,516,000,000. |
|---|---|
| · | Letters of National Estate in pesos adjusted<br>by CER – Maturity: 05-19-2023 (X19Y3) for a nominal amount of 1,759,369,713. |
| --- | --- |
In addition, with almost all the instruments received, the Bank purchased put options with the BCRA that could be exercised up to one day before the maturity of the underlying instrument (see also note 5).
| 10. | EQUITY INSTRUMENTS AT FAIR VALUE THROUGH PROFIT OR LOSS – PRISMA MEDIOS DE PAGO SA |
|---|
On January 21, 2019, the Bank, together with the other shareholders of Prisma, accepted a purchase offer made by AI ZENITH (Netherlands) B.V. (a company related to Advent International Corporation) for the acquisition of 1,933,051 common shares of par value ARS 1 each and entitled to one vote, representing 4.6775 % of its share capital, equivalent to 51% of the Bank’s capital stock in such company.
On February 1, 2019, the Bank completed the transfer of such shares for a total purchase price of (in thousands) USD 64,542 out of which the Bank received on the date hereof (in thousands) USD 38,311 and the payment of the balance for an amount of (in thousands) USD 26,231 shall be deferred for 5 years as follows: (i) 30% of such amount in pesos adjusted by Unit of Purchasing Power (UVA, for its acronym in Spanish) at a 15% nominal annual rate; and (ii) 70% in US Dollars at a 10% nominal annual rate. The purchase price is guaranteed by the issuance of notes in favor of the Bank and pledges of the transferred shares.
During July 2019, the process to determine the final selling price of the shares of Prisma was completed and the final price was (in thousands) USD 63,456. The difference arising from a final price lower than the estimated price was deducted from the price balance, therefore there was no need for the Bank to return any amounts received. All other payment conditions were not modified and remain in full force and effect under the terms described in this note.
On October 1, 2021, the Bank, together with the other class B Shareholders of Prisma, gave notice with respect to the exercise of the existing put option and therefore started the procedure to sell the remaining 49% of the capital stock of Prisma.
As of December 31, 2021, the holding of the Bank in Prisma (equivalent to 49%), was recorded in “Equity instruments at fair value through profit or loss” determined from valuations performed by independent experts, which was adjusted in less, according to Memorandums issued by the BCRA on March 12 and 22, 2021.
On March 18, 2022, the Bank completed the transfer of all remaining shares held in Prisma in favor of AI ZENITH (Netherlands) BV, representing 4.4941% of Prisma’s capital stock.
The price of such shares is (in thousands) USD 33,018 and shall be paid as follows: (i) 30% in pesos at UVA plus a nominal annual rate of 15% that shall be paid 50% on March 18, 2027 and the remaining on March 18, 2028, and (ii) 70% in US Dollars at a nominal annual rate of 10% that shall be paid 50% on March 18, 2027 and the remaining on March 18, 2028. The profit generated for the sale of those shares is recorded in the statement of income under “Net gain from measurement of financial instruments at fair value through profit or loss”.
On the other hand, the parties agreed that: (i) the 40% of the outstanding balance of the sale of 51% mentioned in the first paragraph of this note was paid on March 30, 2022 and (ii) the remaining balance shall be paid in two installments, on January 31, 2026 and January 31, 2027, respectively.
Finally, sellers retained the usufruct (dividends) of the shares sold to be declared by Prisma for the year ended December 31, 2018, which were collected on April 26, 2019. Besides the proportion applicable to the buyer of the dividends to be reported for the following fiscal years –with the buyer’s commitment to voting in favor of the distribution of certain minimum percentages– will be used to create a guarantee trust to repay the deferred price amount through the concession by the buyer and Prisma of a usufruct over the economic rights of the shares in favor of such trust. On March 18, 2022, the agreement was amended to include 100% of the shares.
| - 25 - |
| --- |
NOTES TO THE CONDENSED CONSOLIDATED INTERIMFINANCIAL STATEMENTS
AS OF MARCH 31, 2023
(Translation of Financial Statements originally issued in Spanish – See Note 45)
(Figures stated in thousands of pesos in constant currency)
| 11. | FAIR VALUE QUANTITATIVE AND QUALITATIVE DISCLOSURES |
|---|
The fair value is the amount at which an asset can be exchanged, or at which a liability can be settled, in mutual independent terms and conditions between participants of the principal market (or the most advantageous market) who are duly informed and willing to transact in an orderly and current transaction, at the measurement date under the current market conditions whether the price is directly observable or estimated using a valuation technique under the assumption that the Bank is an ongoing business.
When a financial instrument is quoted in a liquid and active market, its price in the market in a real transaction provides the most reliable evidence of its fair value. Nevertheless, when there is no quoted price in the market or it cannot be evidence of the fair value of such instrument, in order to determine such fair value, the entities may use the market value of another instrument with similar characteristics, the analysis of discounted cash flows or other applicable techniques, which shall be significantly affected by the assumptions used.
Notwithstanding the above, the Bank’s Management has used its best judgment to estimate the fair values of its financial instruments; any technique to perform such estimate implies certain inherent fragility level.
Fair value hierarchy
The Bank uses the following hierarchy to determine and disclose the fair value of financial instruments, according to the valuation technique applied:
| - | Level 1: quoted prices (unadjusted) observable in active markets that the Bank accesses to at the measurement<br>day for identical assets or liabilities. The Bank considers markets as active only if there are sufficient trading activities with respect<br>to the volume and liquidity of the identical assets or liabilities and when there are binding and exercisable price quotes available at<br>each reporting period. |
|---|---|
| - | Level 2: Valuation techniques for which the data and variables having a significant impact on the determination<br>of the fair value recognized or disclosed are observable for the asset or liability, either directly or indirectly. Such inputs include<br>quoted prices for similar assets or liabilities in active markets, quoted prices for identical instruments in inactive markets and observable<br>inputs other than quoted prices, such as interest rates and yield curves, implied volatilities, and credit spreads. In addition, adjustments<br>to level 2 inputs may be required for the condition or location of the asset or the extent to which it relates to items that are comparable<br>to the valued instrument. However, if such adjustments are based on unobservable inputs that are significant to the entire measurement,<br>the Bank will classify the instruments as Level 3. |
| --- | --- |
| - | Level 3: Valuation techniques for which the data and variables having a significant impact on the<br> determination of the fair value recognized or disclosed<br>are not based on observable market information. |
| --- | --- |
The following tables show the hierarchy in the Bank’s financial asset and liability at fair value measurement on a recurring basis, as of March 31, 2023 and December 31, 2022:
| - 26 - |
| --- |
NOTES TO THE CONDENSED CONSOLIDATED INTERIMFINANCIAL STATEMENTS
AS OF MARCH 31, 2023
(Translation of Financial Statements originally issued in Spanish – See Note 45)
(Figures stated in thousands of pesos in constant currency)
| Financial assets and financial liabilities measured at fair value <br><br>on a recurring basis as of March 31, 2023 | ||||||||
|---|---|---|---|---|---|---|---|---|
| Description | Total | Level 1 | Level 2 | Level 3 | ||||
| Financial assets | ||||||||
| At fair value through profit or loss | ||||||||
| Debt securities at fair value through profit or loss | 286,961,214 | 282,288,604 | 4,016,021 | 656,589 | ||||
| Derivatives financial instruments | 455 | 234 | 221 | |||||
| Other financial assets | 5,406,381 | 5,351,239 | 55,142 | |||||
| Financial assets delivered as guarantee | 1,791,980 | 1,791,980 | ||||||
| Equity instruments at fair value through profit or loss | 1,072,672 | 190,455 | 882,217 | |||||
| At fair value through OCI | ||||||||
| Other debt Securities | 88,818,512 | 88,818,512 | ||||||
| Financial assets delivered as guarantee | 3,319,457 | 3,319,457 | ||||||
| Total | 387,370,671 | 381,760,481 | 4,016,242 | 1,593,948 | ||||
| Financial liabilities | ||||||||
| At fair value through profit or loss | ||||||||
| Liabilities at fair value through profit or loss | 2,476,842 | 2,476,842 | ||||||
| Derivatives financial instruments | 100,398 | 100,079 | 319 | |||||
| Total | 2,577,240 | 2,576,921 | 319 | |||||
| Financial assets and financial liabilities measured at fair value<br><br> on a recurring basis as of December 31, 2022 | ||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Description | Total | Level 1 | Level 2 | Level 3 | ||||
| Financial assets | ||||||||
| At fair value through profit or loss | ||||||||
| Debt securities at fair value through profit or loss | 256,921,146 | 251,450,243 | 4,214,791 | 1,256,112 | ||||
| Derivatives financial instruments | 52,222 | 23,364 | 28,858 | |||||
| Other financial assets | 5,488,018 | 5,427,864 | 60,154 | |||||
| Equity instruments at fair value through profit or loss | 1,021,892 | 188,046 | 833,846 | |||||
| At fair value through OCI | ||||||||
| Other debt Securities | 167,883,519 | 167,883,519 | ||||||
| Total | 431,366,797 | 424,973,036 | 4,243,649 | 2,150,112 | ||||
| Financial liabilities | ||||||||
| At fair value through profit or loss | ||||||||
| Liabilities at fair value through profit or loss | 640,345 | 640,345 | ||||||
| Derivatives financial instruments | 2,886 | 2,886 | ||||||
| Total | 643,231 | 640,345 | 2,886 |
| - 27 - |
| --- |
NOTES TO THE CONDENSED CONSOLIDATED INTERIMFINANCIAL STATEMENTS
AS OF MARCH 31, 2023
(Translation of Financial Statements originally issued in Spanish – See Note 45)
(Figures stated in thousands of pesos in constant currency)
Description of the valuation process
The fair value of instruments categorized as Level 1 was assessed by using quoted prices effective at the end of each period or fiscal year, as applicable, in active markets for identical assets or liabilities, if representative. Currently, for most of the government and private securities, there are two principal markets in which the Bank operates: BYMA and MAE. Additionally, in the case of derivatives, both MAE and Mercado a Término de Rosario SA (ROFEX) are deemed active markets.
On the other hand, for certain assets and liabilities that do not have an active market, categorized as Level 2, the Bank used valuation techniques that included the use of market transactions performed under mutual independent terms and conditions, between interested and duly informed parties, provided that they are available as well as references to the current fair value of another instrument being substantially similar, or otherwise the analysis of cash flows discounted at rates built from market information of similar instruments.
In addition, certain assets and liabilities included in this category were valued using price quotes of identical instruments in “less active markets”.
Finally, the Bank has categorized as level 3 those assets and liabilities for which there are no identical or similar transactions in the market. To determine the market value of these instruments the Bank used valuation techniques based on own assumptions and independent appraisers’ valuations. For this approach, the Bank mainly used the cash flow discount model.
As of March 31, 2023 and December 31, 2022, the Bank has neither changed the techniques nor the assumptions used to estimate the fair value of the financial instruments.
Below is the reconciliation between the amounts at the beginning and at the end of the period or fiscal year, as applicable, of the financial assets recognized at fair value categorized as level 3:
| As of March 31, 2023 | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| Reconciliation | Debt instruments | Other financial assets | Equity instruments<br> <br>at fair value<br> <br>through profit or loss | ||||||
| Amount at the beginning | 1,256,112 | 60,154 | 833,846 | ||||||
| Transfers to Level 3 | |||||||||
| Transfers from Level 3 | |||||||||
| Profit and loss | 195,593 | (3,287 | ) | 197,303 | |||||
| Recognition and derecognition | (570,178 | ) | 10,094 | ||||||
| Monetary effects | (224,938 | ) | (11,819 | ) | (148,932 | ) | |||
| Amount at the end of the period | 656,589 | 55,142 | 882,217 | ||||||
| As of December 31, 2022 | |||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Reconciliation | Debt instruments | Other financial assets | Equity instruments<br> <br>at fair value<br> <br>through profit or loss | ||||||
| Amount at the beginning | 2,648,116 | 73,559 | 5,008,120 | ||||||
| Transfers to Level 3 | |||||||||
| Transfers from Level 3 | |||||||||
| Profit and loss | 890,158 | 6,164 | 4,377 | ||||||
| Recognition and derecognition | (976,251 | ) | 25,638 | (3,053,093 | ) | ||||
| Monetary effects | (1,305,911 | ) | (45,207 | ) | (1,125,558 | ) | |||
| Amount at the end of the fiscal year | 1,256,112 | 60,154 | 833,846 |
| - 28 - |
| --- |
NOTES TO THE CONDENSED CONSOLIDATED INTERIMFINANCIAL STATEMENTS
AS OF MARCH 31, 2023
(Translation of Financial Statements originally issued in Spanish – See Note 45)
(Figures stated in thousands of pesos in constant currency)
Quantitative information about Level 3 fair value measurements
The following table provides quantitative information about the valuation techniques and significant unobservable inputs used in the valuation of substantially all of Level 3 principal assets measured at fair value on a recurring basis for which the Bank uses an internal model.
| Range of inputs | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Fair value of | Significant | 03/31/2023 | ||||||||
| Level 3 Assets | Valuation | unobservable | Range of inputs | |||||||
| Composition | 03/31/2023 | technique | inputs | Low | High | Unit | ||||
| Provisional Debt Securities of Financial<br> Trusts | 207,616 | Income approach (discounted cash<br> flow) | Discount rate in pesos | 69.68 | 84.06 | % | ||||
| Corporate bonds | 444,326 | Income approach (discounted cash flow) | Discount rate in pesos | 147.66 | 147.96 | % | ||||
| Range of inputs | ||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Fair value of | Significant | 12/31/2022 | ||||||||
| Level 3 Assets | Valuation | unobservable | Range of inputs | |||||||
| Composition | 12/31/2022 | technique | inputs | Low | High | Unit | ||||
| Provisional Debt Securities of Financial<br> Trusts | 722,019 | Income approach (discounted cash<br> flow) | Discount rate in pesos | 69.99 | 83.83 | % | ||||
| Corporate bonds | 529,144 | Income approach (discounted cash flow) | Discount rate in pesos | 76.98 | 86.47 | % |
The table below describes the effect of changing the significant unobservable inputs to reasonably possible alternatives. Sensitivity data were calculated using a number of techniques including analyzing price dispersion of different price sources, adjusting model inputs to analyze changes within the fair value methodology.
| 03/31/2023 | 12/31/2022 | |||||
|---|---|---|---|---|---|---|
| Favorable changes | Unfavorable changes | Favorable<br> <br>changes | Unfavorable changes | |||
| Provisional Debt Securities of Financial Trusts | 433 | (416 | ) | 1,489 | (1,432 | ) |
| Corporate bonds | 105 | (105 | ) | 3,191 | (3,088 | ) |
Changes in fair value levels
The Bank monitors the availability of information in the market to evaluate the classification of financial instruments into the fair value hierarchy as well as the resulting determination of transfers between levels 1, 2 and 3 at each period end.
As of March 31, 2023 and December 31, 2022, the Bank has not recognized any transfers between levels 1, 2 and 3.
Financial assets and liabilities not measured at fair value
Next follows a description of the main methods and assumptions used to determine the fair values of financial instruments not recognized at their fair value in these condensed consolidated interim Financial Statements:
| - 29 - |
| --- |
NOTES TO THE CONDENSED CONSOLIDATED INTERIMFINANCIAL STATEMENTS
AS OF MARCH 31, 2023
(Translation of Financial Statements originally issued in Spanish – See Note 45)
(Figures stated in thousands of pesos in constant currency)
| - | Instruments with fair value similar to the carrying amount: financial assets and liabilities that are<br>liquid or have short-term maturities (less than three months) were deemed to have a fair value similar to the carrying amount. |
|---|---|
| - | Fixed and variable rate of financial instruments: the fair value of financial assets was recognized discounting<br>future cash flows at current market rates for each period or fiscal year, as applicable, for financial instruments of similar characteristics.<br>The estimated fair value of fixed-interest rate deposits and liabilities was assessed discounting future cash flows by using estimated<br>interest rates for deposits or placings with similar maturities to those of the Bank’s portfolio. |
| --- | --- |
| - | For public listed assets and liabilities, or those for which the prices are reported by certain renowned<br>pricing providers, the fair value was determined based on such prices. |
| --- | --- |
The following table shows a comparison between the fair value and the carrying amount of financial instruments not measured at fair value as of March 31, 2023 and December 31, 2022:
| 03/31/2023 | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Composition | Carrying<br><br> amount | Level 1 | Level 2 | Level 3 | Fair value | |||||
| Financial assets | ||||||||||
| Cash and deposits in banks | 297,608,616 | 297,608,616 | 297,608,616 | |||||||
| Repo transactions | 39,118,052 | 39,118,052 | 39,118,052 | |||||||
| Other financial assets | 77,082,473 | 77,082,473 | 77,082,473 | |||||||
| Loans and other financing | 697,785,970 | 631,734,848 | 631,734,848 | |||||||
| Other debt securities | 725,172,781 | 618,271,886 | 81,591,491 | 24,657,989 | 724,521,366 | |||||
| Financial assets delivered as guarantee | 32,386,968 | 32,386,968 | 32,386,968 | |||||||
| Total | 1,869,154,860 | 1,064,467,995 | 81,591,491 | 656,392,837 | 1,802,452,323 | |||||
| Financial liabilities | ||||||||||
| --- | --- | --- | --- | --- | --- | |||||
| Deposits | 1,464,338,267 | 658,383,630 | 804,246,861 | 1,462,630,491 | ||||||
| Repo transactions | 4,486,445 | 4,486,445 | 4,486,445 | |||||||
| Other financial liabilities | 153,007,216 | 147,932,609 | 5,126,960 | 153,059,569 | ||||||
| Financing received from the BCRA and other financial institutions | 4,507,195 | 4,417,755 | 52,551 | 4,470,306 | ||||||
| Issued corporate bonds | 3,286,431 | 3,230,273 | 3,230,273 | |||||||
| Subordinated corporate bonds | 86,393,588 | 68,977,510 | 68,977,510 | |||||||
| Total | 1,716,019,142 | 815,220,439 | 77,387,294 | 804,246,861 | 1,696,854,594 | |||||
| 12/31/2022 | ||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Composition | Carrying<br><br> amount | Level 1 | Level 2 | Level 3 | Fair value | |||||
| Financial assets | ||||||||||
| Cash and deposits in banks | 304,439,346 | 304,439,346 | 304,439,346 | |||||||
| Repo transactions | 75,388,016 | 75,388,016 | 75,388,016 | |||||||
| Other financial assets | 65,049,216 | 65,049,216 | 65,049,216 | |||||||
| Loans and other financing | 728,691,136 | 635,369,471 | 635,369,471 | |||||||
| Other debt securities | 729,899,952 | 622,932,157 | 100,635,729 | 117,233 | 723,685,119 | |||||
| Financial assets delivered as guarantee | 37,274,786 | 37,274,786 | 37,274,786 | |||||||
| Total | 1,940,742,452 | 1,105,083,521 | 100,635,729 | 635,486,704 | 1,841,205,954 |
| - 30 - |
| --- |
NOTES TO THE CONDENSED CONSOLIDATED INTERIMFINANCIAL STATEMENTS
AS OF MARCH 31, 2023
(Translation of Financial Statements originally issued in Spanish – See Note 45)
(Figures stated in thousands of pesos in constant currency)
| 12/31/2022 | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Composition | Carrying amount | Level 1 | Level 2 | Level 3 | Fair value | |||||
| Financial liabilities | ||||||||||
| Deposits | 1,576,914,944 | 790,135,906 | 785,491,913 | 1,575,627,819 | ||||||
| Other financial liabilities | 164,449,843 | 159,203,357 | 5,322,022 | 164,525,379 | ||||||
| Financing received from the BCRA and other financial institutions | 2,981,642 | 2,899,849 | 63,256 | 2,963,105 | ||||||
| Issued corporate bonds | 3,305,711 | 3,211,970 | 3,211,970 | |||||||
| Subordinated corporate bonds | 87,805,350 | 71,597,413 | 71,597,413 | |||||||
| Total | 1,835,457,490 | 952,239,112 | 80,194,661 | 785,491,913 | 1,817,925,686 | |||||
| 12. | BUSINESS COMBINATIONS | |||||||||
| --- | --- |
On October 1, 2021, the Bank exercised a call option to reach 24.99% of the equity interest in Fintech SGR, being this a structured entity in which the Bank has control.
Assets acquired and liabilities assumed
The fair value of the identifiable assets and liabilities of Fintech SGR and the risk fund (“Fondo de Riesgo”), as of the date of acquisition, were as follows:
| Fair value recognized on acquisition | ||||
|---|---|---|---|---|
| Composition | SGR | Risk fund | ||
| Assets | 140,760 | 2,036,951 | ||
| Cash and deposits in Banks | 593 | 220,006 | ||
| Debt Securities at fair value through profit or loss | 1,475,338 | |||
| Other financial assets | 93,833 | 340,656 | ||
| Property, plant and equipment | 1,349 | |||
| Deferred tax assets | 9,402 | |||
| Other non-financial assets | 35,583 | 951 | ||
| Liabilities | 119,026 | 2,036,951 | ||
| Other financial liabilities | 2,018,941 | |||
| Other non-financial liabilities | 119,026 | 18,010 | ||
| Net assets acquired at fair value | 21,734 |
The goodwill generated by the acquisition of Fintech SGR amounted to 54,122.
The total consideration transferred amounted to 33,488 (not restated) and it was performed through an irrevocable capital contribution made by the Bank in order to increase the capital stock of Fintech SGR, which was approved by the Fintech SGR’s Ordinary and Special Shareholders’ Meeting involving class “A” and class “B”, held on October 18, 2021.
| - 31 - |
| --- |
NOTES TO THE CONDENSED CONSOLIDATED INTERIMFINANCIAL STATEMENTS
AS OF MARCH 31, 2023
(Translation of Financial Statements originally issued in Spanish – See Note 45)
(Figures stated in thousands of pesos in constant currency)
| 13. | INVESTMENT IN ASSOCIATES AND JOINT ARRANGEMENTS |
|---|
13.1 Associates
| a) | Macro Warrants SA |
|---|
The Bank holds an investment in the associate Macro Warrants SA. The existence of significant influence is evidenced by the representation the Bank has in the Board of Directors of the associate. In order to measure this investment, the Bank used accounting information of Macro Warrants SA as of December 31, 2022. Additionally, the Bank has considered, when applicable, the material transactions or events occurring between January 1, 2023 and March 31, 2023.
The following table presents the summarized financial information on the Bank’s investment in the associate:
| Summarized statement of financial position | 03/31/2023 | 12/31/2022 | ||||
|---|---|---|---|---|---|---|
| Total assets | 138,960 | 154,900 | ||||
| Total liabilities | 13,315 | 19,435 | ||||
| Shareholders’ equity | 125,645 | 135,465 | ||||
| Proportional Bank’s interest | 5 | % | 5 | % | ||
| Investment carrying amount | 6,282 | 6,773 |
As of March 31, 2023 and 2022, the investment carrying amount in the net income of the periods amounted to (491) and (2,210), respectively.
| b) | Play Digital SA |
|---|
As explained in note 1, the Bank holds an investment in the associate Play Digital SA. The existence of significant influence is evidenced by the representation the Bank has in the Board of Directors of the associate. In order to measure this investment, the Bank used accounting information of Play Digital SA as of December 31, 2022. Additionally, the Bank has considered, when applicable, the material transactions or events occurring between January 1, 2023 and March 31, 2023.
The following table presents the summarized financial information on the Bank’s interest in the associate:
| Summarized statement of financial position | 03/31/2023 | 12/31/2022 | ||||
|---|---|---|---|---|---|---|
| Total assets | 4,312,277 | 5,260,153 | ||||
| Total liabilities | 1,463,342 | 543,828 | ||||
| Shareholders’ equity | 2,848,935 | 4,716,325 | ||||
| Effects of the irrevocable capital contributions made during 2022 pending capitalization (see note 1) | (5,595,404 | ) | ||||
| Adjusted Shareholders’ equity | 2,848,935 | (879,079 | ) | |||
| Proportional Bank’s interest (see note 1) | 9.6984 | % | 8.9927 | % | ||
| Equity interest | 276,301 | (79,053 | ) | |||
| Irrevocable capital contribution made during 2023 and 2022 (see note 1) | 347,371 | 593,931 | ||||
| Investment carrying amount | 623,672 | 514,878 |
As of March 31, 2023 and 2022, the investment carrying amount in the net income of the periods amounted to (265,238) and (171,374), respectively.
| - 32 - |
| --- |
NOTES TO THE CONDENSED CONSOLIDATED INTERIMFINANCIAL STATEMENTS
AS OF MARCH 31, 2023
(Translation of Financial Statements originally issued in Spanish – See Note 45)
(Figures stated in thousands of pesos in constant currency)
13.2 Joint ventures
The Bank participates in the following joint ventures:
| a) | Banco Macro SA – Wordline Argentina SA Unión transitoria |
|---|
On April 7, 1998, the Bank executed an agreement with Siemens Itron Services SA to organize a joint venture (UTE, for its acronym in Spanish) controlled on a joint basis through a 50% interest, the purpose of which is to facilitate a data processing center for the tax administration, to modernize the systems and tax collection processes of the Province of Salta and manage and recover municipal taxes and fees.
The following table presents the summarized financial information on the Bank’s investment in the UTE:
| Summarized statement of financial position | 03/31/2023 | 12/31/2022 | ||||
|---|---|---|---|---|---|---|
| Total assets | 1,858,217 | 1,888,446 | ||||
| Total liabilities | 296,647 | 323,594 | ||||
| Shareholders’ equity | 1,561,570 | 1,564,852 | ||||
| Proportional Bank’s interest | 50 | % | 50 | % | ||
| Investment carrying amount | 780,785 | 782,426 |
As of March 31, 2023 and 2022, the investment carrying amount in the net income of the periods amounted to 50,661 and 105,826, respectively.
| b) | Finova SA |
|---|
On October 1, 2021, the Bank acquired the 50% of Finova SA. The Bank has common control over this company, as the decisions about the relevant activities require unanimous consent.
The following table presents the summarized financial information on the Bank in this company, which as explained in note 3, section 3.5 “Investment in associates and joint arrangements” to the consolidated Financial Statements as of December 31, 2022, already issued, is measured at equity method plus goodwill:
| Summarized statement of financial position | 03/31/2023 | 12/31/2022 | ||||
|---|---|---|---|---|---|---|
| Total assets | 50,945 | 62,015 | ||||
| Total liabilities | 8,287 | 10,088 | ||||
| Shareholders’ equity | 42,658 | 51,927 | ||||
| Proportional Bank’s interest | 50 | % | 50 | % | ||
| Equity interest | 21,329 | 25,964 | ||||
| Goodwill | 59,654 | 59,654 | ||||
| Investment carrying amount | 80,983 | 85,618 |
As of March 31, 2023 and 2022, the investment carrying amount in the net income of the periods amounted to (4,635) and (5,712), respectively.
| 14. | OTHER NON-FINANCIAL ASSETS |
|---|
The composition of the other non-financial assets as of March 31, 2023 and December 31, 2022 is as follows:
| - 33 - |
| --- |
NOTES TO THE CONDENSED CONSOLIDATED INTERIMFINANCIAL STATEMENTS
AS OF MARCH 31, 2023
(Translation of Financial Statements originally issued in Spanish – See Note 45)
(Figures stated in thousands of pesos in constant currency)
| Composition | 03/31/2023 | 12/31/2022 | ||
|---|---|---|---|---|
| Investment property (see Exhibit F) | 11,013,156 | 10,578,476 | ||
| Advanced prepayments | 3,244,533 | 2,857,808 | ||
| Tax advances | 666,309 | 1,497,483 | ||
| Other | 333,845 | 225,406 | ||
| Total | 15,257,843 | 15,159,173 | ||
| 15. | RELATED PARTIES | |||
| --- | --- |
A related party is a person or entity that is related to the Bank:
| - | has control or joint control of the Bank; |
|---|---|
| - | has significant influence over the Bank; |
| - | is a member of the key management personnel of the Bank or of the parent of the Bank; |
| - | members of the same group; |
| - | one entity is an associate (or an associate of a member of a group of which the other entity is a member). |
Key management personnel are those persons having authority and responsibility for planning, directing and controlling the activities of the Bank, directly or indirectly. The Bank considers as key management personnel, for the purposes of IAS 24, the members of the Board of Directors and the senior management members of the Risk Management Committee, the Assets and Liabilities Committee and the Senior Credit Committee.
As of March 31, 2023 and December 31, 2022, amounts balances related to transactions generated with related parties are as follows:
| As<br> of March 31, 2023 | |||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Main<br> subsidiaries (1) | |||||||||||||||
| Macro Bank<br><br> Limited | Macro<br><br><br> Securities<br><br> SAU | Macro<br><br><br> Fondos<br><br> SGFCISA | Argenpay<br><br><br> SAU | Fintech<br><br><br> SGR | Associates | Key<br><br><br> management<br><br> personnel (2) | Other<br><br><br> related<br><br> parties | Total | |||||||
| Assets | |||||||||||||||
| Cash<br> and deposits in banks | 1,675 | 1,675 | |||||||||||||
| Other<br> financial assets | 2,793,910 | 229,199 | 964,632 | 3,987,741 | |||||||||||
| Loans<br> and other financing (3) | |||||||||||||||
| Documents | 36,176 | 36,176 | |||||||||||||
| Overdraft | 2,043 | 1,426,681 | 1,428,724 | ||||||||||||
| Credit<br> cards | 154,002 | 35,258 | 189,260 | ||||||||||||
| Lease | 64,406 | 64,406 | |||||||||||||
| Personal<br> loans | 1,069 | 1,069 | |||||||||||||
| Mortgage<br> loans | 613,118 | 613,118 | |||||||||||||
| Other<br> loans (4) | 2,113,739 | 238,766 | 2,656,490 | 5,008,995 | |||||||||||
| Guarantee<br> granted | 3,150,008 | 3,150,008 | |||||||||||||
| Total<br> assets | 1,675 | 2,113,739 | 2,793,910 | 1,238,197 | 8,333,651 | 14,481,172 |
| - 34 - |
| --- |
NOTES TO THE CONDENSED CONSOLIDATED INTERIMFINANCIAL STATEMENTS
AS OF MARCH 31, 2023
(Translation of Financial Statements originally issued in Spanish – See Note 45)
(Figures stated in thousands of pesos in constant currency)
| **** | As of March 31, 2023 | |||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| **** | Main subsidiaries (1) | **** | **** | **** | **** | |||||||||||||
| **** | Macro Bank Limited | Macro Securities SAU | Macro Fondos SGFCISA | Argenpay SAU | Fintech SGR | Associates | Key management personnel (2) | Other related parties | Total | |||||||||
| Liabilities | ||||||||||||||||||
| Deposits | 3,224,547 | 78,343 | 150,282 | 84 | 95,220 | 4,602,221 | 2,192,810 | 10,343,507 | ||||||||||
| Liabilities at fair value through<br> profit or loss | 208,218 | 208,218 | ||||||||||||||||
| Other financial liabilities | 57,366 | 33,368 | 90,734 | |||||||||||||||
| Issued corporate bonds | 49,202 | 211,259 | 260,461 | |||||||||||||||
| Subordinated corporate bonds | 205,673 | 205,673 | ||||||||||||||||
| Other non-financial liabilities | 9,134 | 25,655 | 34,789 | |||||||||||||||
| Total liabilities | 3,273,749 | 289,602 | 150,282 | 205,757 | 95,220 | 4,668,721 | 2,460,051 | 11,143,382 | ||||||||||
| (1) | These transactions<br> are eliminated during the consolidation process. | |||||||||||||||||
| --- | --- | |||||||||||||||||
| (2) | Includes close family members of the key management<br> personnel. | |||||||||||||||||
| (3) | The maximum financing amount for loans and other financing<br> as of March 31, 2023 for Macro Securities SAU, key management personnel and other related parties amounted<br> to 4,903,418, 1,291,187 and 9,890,238, respectively. | |||||||||||||||||
| (4) | It is related to Loans and other financing not disclosed<br> in other items, mainly other loans, financing of foreign exchange transactions and loans with government securities. | |||||||||||||||||
| As<br> of December 31, 2022 | ||||||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Main<br> subsidiaries (1) | ||||||||||||||||||
| Macro<br> Bank <br> Limited | Macro<br><br> Securities <br><br> SAU | Macro<br><br> Fondos <br><br> SGFCISA | Argenpay<br><br> SAU | Fintech<br><br> SGR | Associates | Key<br><br> management <br><br> personnel (2) | Other<br><br> related <br><br> parties | Total | ||||||||||
| Assets | ||||||||||||||||||
| Cash and deposits<br> in banks | 1,727 | 1,727 | ||||||||||||||||
| Other financial assets | 3,672,708 | 283,068 | 23 | 3,955,799 | ||||||||||||||
| Loans and other financing (3) | ||||||||||||||||||
| Overdraft | 68,496 | 512,384 | 580,880 | |||||||||||||||
| Credit<br> cards | 230,946 | 60,647 | 291,593 | |||||||||||||||
| Lease | 81,178 | 81,178 | ||||||||||||||||
| Personal<br> loans | 1,415 | 1,415 | ||||||||||||||||
| Mortgage<br> loans | 660,498 | 660,498 | ||||||||||||||||
| Other<br> loans (4) | 2,572,659 | 184,849 | 1,704,400 | 4,461,908 | ||||||||||||||
| Other non-financial assets | 1,874,704 | 1,874,704 | ||||||||||||||||
| Total assets | 1,727 | 2,572,659 | 3,672,708 | 1,429,272 | 4,233,336 | 11,909,702 | ||||||||||||
| Liabilities | ||||||||||||||||||
| Deposits | 3,574,433 | 79,556 | 70,773 | 141 | 103,119 | 5,066,181 | 2,799,040 | 11,693,243 | ||||||||||
| Liabilities at fair value through<br> profit or loss | 200,378 | 200,378 | ||||||||||||||||
| Other financial liabilities | 62,923 | 14,642 | 77,565 | |||||||||||||||
| Issued corporate bonds | 133,023 | 217,788 | 350,811 | |||||||||||||||
| Subordinated corporate bonds | 175,963 | 175,963 | ||||||||||||||||
| Other non-financial<br> liabilities | 24,609 | 24,609 | ||||||||||||||||
| Total<br> liabilities | 3,707,456 | 297,344 | 70,773 | 176,104 | 103,119 | 5,129,104 | 3,038,669 | 12,522,569 |
| - 35 - |
| --- |
NOTES TO THE CONDENSED CONSOLIDATED INTERIMFINANCIAL STATEMENTS
AS OF MARCH 31, 2023
(Translation of Financial Statements originally issued in Spanish – See Note 45)
(Figures stated in thousands of pesos in constant currency)
| (1) | These transactions are eliminated during<br> the consolidation process. |
|---|---|
| (2) | Includes close family members of the key<br> management personnel. |
| --- | --- |
| (3) | The maximum financing amount for loans and<br> other financing as of December 31, 2022 for Macro Securities SAU, Fintech SGR, key management<br> personnel and other related parties amounted to 5,512,558, 3,086,490, 1,606,103 and 20,499,932,<br> respectively. |
| --- | --- |
| (4) | It is related to Loans and other financing<br> not disclosed in other items, mainly other loans, financing of foreign exchange transactions<br> and loans with government securities. |
| --- | --- |
Profit or loss related to transactions generated during the three-month periods ended March 31, 2023 and 2022 with related parties are as follows:
| As<br> of March 31, 2023 | |||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Main<br> subsidiaries (1) | |||||||||||||||||||||
| Macro<br> Bank<br><br> Limited | Macro<br><br> Securities <br><br> SAU | Macro<br> <br><br> Fondos <br><br> SGFCISA | Argenpay<br><br> SAU | Fintech<br> <br><br> SGR | Associates | Key<br><br> management <br><br> personnel (2) | Other<br><br> related <br><br> parties | Total | |||||||||||||
| Income / (loss) | |||||||||||||||||||||
| Interest income | 819 | 108,398 | 395,330 | 504,547 | |||||||||||||||||
| Interest expense | (8,177 | ) | (28,917 | ) | (20,142 | ) | (57,236 | ) | |||||||||||||
| Commissions income | 11,491 | 50 | 292 | 232 | 48 | 119,043 | 131,156 | ||||||||||||||
| Commissions expense | (4,879 | ) | (12 | ) | (10,180 | ) | (15,071 | ) | |||||||||||||
| Other operating income | 26,066 | 13 | 422,414 | 18 | 448,511 | ||||||||||||||||
| Administrative expense | (270,783 | ) | (270,783 | ) | |||||||||||||||||
| Other operating<br> expense | (17,504 | ) | (17,504 | ) | |||||||||||||||||
| Total<br> Income / (loss) | 38,376 | 50 | 13 | 417,827 | (7,945 | ) | 79,517 | 195,782 | 723,620 | ||||||||||||
| (1) | These transactions are eliminated during<br> the consolidation process. | ||||||||||||||||||||
| --- | --- | ||||||||||||||||||||
| (2) | Includes close family members of the key<br> management personnel. | ||||||||||||||||||||
| --- | --- | ||||||||||||||||||||
| As<br> of March 31, 2022 | |||||||||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | |
| Main<br> subsidiaries (1) | |||||||||||||||||||||
| Macro<br> Bank<br><br> Limited | Macro<br><br><br> Securities <br><br>SAU | Macro<br><br><br> Fondos <br><br>SGFCISA | Argenpay<br><br><br> SAU | Fintech<br><br><br> SGR | Associates | Key<br><br><br> management <br><br>personnel (2) | Other<br><br><br> related <br><br>parties | Total | |||||||||||||
| Income / (loss) | |||||||||||||||||||||
| Interest income | 1,851 | 107,082 | 483,347 | 592,280 | |||||||||||||||||
| Interest expense | (5,199 | ) | (30,740 | ) | (2,421 | ) | (38,360 | ) | |||||||||||||
| Commissions income | 782 | 51 | 304 | 72 | 8 | 24,914 | 26,131 | ||||||||||||||
| Commissions expense | (10 | ) | (1,389 | ) | (1,399 | ) | |||||||||||||||
| Other operating income | 2 | 2,374 | 31 | 16 | 2,423 | ||||||||||||||||
| Administrative expense | (140,599 | ) | (140,599 | ) | |||||||||||||||||
| Other operating expense | (26,981 | ) | (26,981 | ) | |||||||||||||||||
| Total Income / (loss) | 2 | 5,007 | 51 | 31 | 304 | (5,127 | ) | 76,340 | 336,887 | 413,495 | |||||||||||
| (1) | These transactions are eliminated during<br> the consolidation process. | ||||||||||||||||||||
| --- | --- | ||||||||||||||||||||
| (2) | Includes close family members of the key<br> management personnel. | ||||||||||||||||||||
| --- | --- |
Transactions generated by the Bank with its related parties for transactions arranged within the course of the usual and ordinary course of business were performed in normal market conditions, both as to interest rates and prices and as to the required guarantees.
The Bank does not have loans granted to directors and other key management personnel secured with shares.
| - 36 - |
| --- |
NOTES TO THE CONDENSED CONSOLIDATED INTERIMFINANCIAL STATEMENTS
AS OF MARCH 31, 2023
(Translation of Financial Statements originally issued in Spanish – See Note 45)
(Figures stated in thousands of pesos in constant currency)
Total remunerations received as salary and bonus by the key management personnel as of March 31, 2023 and 2022, totaled 278,170 and 253,600, respectively.
In addition, fees received by the Directors as of March 31, 2023 and 2022 amounted to 1,004,370 and 1,004,988, respectively.
Additionally, the composition of the Board of Directors and key management personnel of the Bank and its subsidiaries is as follows:
| Composition | 03/31/2023 | 12/31/2022 | ||
|---|---|---|---|---|
| Board of Directors | 21 | 22 | ||
| Senior managers of the key management personnel | 12 | 12 | ||
| Total | 33 | 34 | ||
| 16. | DEPOSITS | |||
| --- | --- |
The composition of deposits as of March 31, 2023 and December 31, 2022 is as follows:
| Composition | 03/31/2023 | 12/31/2022 | ||
|---|---|---|---|---|
| Non-financial Public Sector | 111,059,915 | 133,847,469 | ||
| Financial sector | 1,910,914 | 2,012,780 | ||
| Non-financial Private Sector and Foreign Residents | 1,351,367,438 | 1,441,054,695 | ||
| Checking accounts | 167,488,304 | 193,705,106 | ||
| Saving accounts | 423,068,911 | 510,959,453 | ||
| Time deposits | 739,869,262 | 692,683,866 | ||
| Investment accounts | 1,746,973 | 24,936,192 | ||
| Other | 19,193,988 | 18,770,078 | ||
| Total | 1,464,338,267 | 1,576,914,944 | ||
| 17. | OTHER FINANCIAL LIABILITIES | |||
| --- | --- |
The composition of the other financial liabilities as of March 31, 2023 and December 31, 2022 is as follows:
| Composition | 03/31/2023 | 12/31/2022 | ||
|---|---|---|---|---|
| Credit and debit card settlement - due to merchants | 76,292,074 | 89,487,253 | ||
| Amounts payable for other spot purchases pending settlement | 31,956,085 | 17,937,785 | ||
| Amounts payable for spot purchases of foreign currency pending settlement | 20,985,949 | 19,538,557 | ||
| Payment orders pending to foreign exchange settlement | 7,383,806 | 6,930,002 | ||
| Collections and other transactions on account and behalf of others | 4,528,815 | 3,415,738 | ||
| Finance leases liabilities | 2,770,865 | 2,392,355 | ||
| Amounts payable for spot purchases of government securities pending settlement | 983,717 | 11,906,025 | ||
| Other | 8,105,905 | 12,842,128 | ||
| Total | 153,007,216 | 164,449,843 |
| - 37 - |
| --- |
NOTES TO THE CONDENSED CONSOLIDATED INTERIMFINANCIAL STATEMENTS
AS OF MARCH 31, 2023
(Translation of Financial Statements originally issued in Spanish – See Note 45)
(Figures stated in thousands of pesos in constant currency)
| 18. | PROVISIONS |
|---|
This item includes the amounts estimated to face a liability of probable occurrence, which if occurring, would originate a loss for the Bank.
Exhibit J “Changes in Provisions” presents the changes in provisions as of March 31, 2023 and December 31, 2022.
The expected terms to settle these obligations are as follows:
| 03/31/2023 | ||||||||
|---|---|---|---|---|---|---|---|---|
| Composition | Within<br> 12 months | Over 12<br> <br>months | 03/31/2023 | 12/31/2022 | ||||
| For administrative,<br> disciplinary and criminal penalties | 500 | 500 | 609 | |||||
| Letters of credits, guarantees<br> and other commitments (1) | 821,300 | 821,300 | 848,191 | |||||
| Commercial claims in progress<br> (2) | 442,804 | 190,198 | 633,002 | 602,100 | ||||
| Labor lawsuits | 331,098 | 94,614 | 425,712 | 324,254 | ||||
| Pension funds - reimbursement | 294,663 | 254,934 | 549,597 | 631,170 | ||||
| Other | 11,861 | 723,974 | 735,835 | 896,370 | ||||
| Total | 1,901,726 | 1,264,220 | 3,165,946 | 3,302,694 | ||||
| (1) | These amounts correspond to the ECL<br> calculated for contingent transactions, which are mentioned in note 4. | |||||||
| --- | --- | |||||||
| (2) | See also note 40.2. | |||||||
| --- | --- |
In the opinion of the Bank’s Management and its legal counsel, there are no other significant effects other than those disclosed in these condensed consolidated interim Financial Statements, the amounts and settlement terms of which have been recognized based on the current value of such estimates, considering the probable settlement date thereof.
| 19. | OTHER NON-FINANCIAL LIABILITIES |
|---|
The composition of other non-financial liabilities as of March 31, 2023 and December 31, 2022 is as follows:
| Composition | 03/31/2023 | 12/31/2022 | ||
|---|---|---|---|---|
| Withholdings | 17,089,112 | 19,312,503 | ||
| Salaries, bonuses and payroll taxes payables | 12,820,232 | 13,352,502 | ||
| Taxes payables | 9,123,373 | 9,387,288 | ||
| Miscellaneous payables | 4,159,381 | 3,596,632 | ||
| Retirement pension payment orders pending settlement | 1,140,458 | 1,369,362 | ||
| Fees payable | 289,493 | 835,154 | ||
| Other | 2,991,287 | 4,259,311 | ||
| Total | 47,613,336 | 52,112,752 |
| - 38 - |
| --- |
NOTES TO THE CONDENSED CONSOLIDATED INTERIMFINANCIAL STATEMENTS
AS OF MARCH 31, 2023
(Translation of Financial Statements originally issued in Spanish – See Note 45)
(Figures stated in thousands of pesos in constant currency)
| 20. | ANALYSIS OF FINANCIAL ASSETS TO BE RECOVERED AND FINANCIAL LIABILITIES TO BE SETTLED |
|---|
The following tables show the analysis of financial assets and liabilities the Bank expects to recover and settle as of March 31, 2023 and December 31, 2022:
| 03/31/2023 | Without due date | Total up to 12 months | Total over 12 months | |||
|---|---|---|---|---|---|---|
| Assets | ||||||
| Cash and deposits in banks | 297,608,616 | |||||
| Debt securities at fair value through profit or loss | 273,612,403 | 13,348,811 | ||||
| Derivative financial instruments | 455 | |||||
| Repo transactions | 39,118,052 | |||||
| Other financial assets | 13,501,970 | 55,022,852 | 13,964,032 | |||
| Loans and other financing (1) | 1,531,184 | 502,142,109 | 194,112,677 | |||
| Other debt securities | 731,578,534 | 82,412,759 | ||||
| Financial assets delivered as guarantee | 32,386,968 | 5,111,437 | ||||
| Equity instruments at fair value through profit or loss | 1,072,672 | |||||
| Total assets | 346,101,410 | 1,606,585,842 | 303,838,279 | |||
| Liabilities | ||||||
| Deposits | 647,418,860 | 816,887,366 | 32,041 | |||
| Financial liabilities at fair value through profit or loss | 2,476,842 | |||||
| Derivative financial instruments | 100,398 | |||||
| Repo transactions | 4,486,445 | |||||
| Other financial liabilities | 149,291,036 | 3,716,180 | ||||
| Financing received from the BCRA and other financial institutions | 4,507,195 | |||||
| Issued corporate bonds | 7,585 | 3,278,846 | ||||
| Subordinated corporate bonds | 2,996,807 | 83,396,781 | ||||
| Total liabilities | 647,418,860 | 980,753,674 | 90,423,848 | |||
| (1) | The amounts included in “without due date” are related<br> to the non-performing portfolio. | |||||
| --- | --- | |||||
| 12/31/2022 | Without due date | Total up to 12 months | Total over 12 months | |||
| --- | --- | --- | --- | --- | --- | --- |
| Assets | ||||||
| Cash and deposits in banks | 304,439,346 | |||||
| Debt securities at fair value through profit or loss | 232,111,893 | 24,809,253 | ||||
| Derivative financial instruments | 52,222 | |||||
| Repo transactions | 75,388,016 | |||||
| Other financial assets | 13,938,819 | 42,285,434 | 14,312,981 | |||
| Loans and other financing (1) | 1,772,911 | 522,425,531 | 204,492,694 | |||
| Other debt securities | 834,635,715 | 63,147,756 | ||||
| Financial assets delivered as guarantee | 37,274,786 | |||||
| Equity instruments at fair value through profit or loss | 1,021,892 | |||||
| Total assets | 358,447,754 | 1,706,898,811 | 306,762,684 |
| - 39 - |
| --- |
NOTES TO THE CONDENSED CONSOLIDATED INTERIMFINANCIAL STATEMENTS
AS OF MARCH 31, 2023
(Translation of Financial Statements originally issued in Spanish – See Note 45)
(Figures stated in thousands of pesos in constant currency)
| 12/31/2022 | Without due date | Total up to 12 months | Total over 12 months | |||
|---|---|---|---|---|---|---|
| Liabilities | ||||||
| Deposits | 779,469,627 | 797,420,145 | 25,172 | |||
| Liabilities at fair value through profit or loss | 640,345 | |||||
| Derivative financial instruments | 2,886 | |||||
| Other financial liabilities | 160,597,154 | 3,852,689 | ||||
| Financing received from the BCRA and other financial institutions | 2,981,642 | |||||
| Issued corporate bonds | 7,898 | 3,297,813 | ||||
| Subordinated corporate bonds | 1,728,867 | 86,076,483 | ||||
| Total liabilities | 779,469,627 | 963,378,937 | 93,252,157 | |||
| (1) | The amounts included in “without due date” are related<br> to the non-performing portfolio. | |||||
| --- | --- | |||||
| 21. | DISCLOSURES BY OPERATING SEGMENT | |||||
| --- | --- |
For management purposes, the Bank’s Management has determined that it has only one operating segment related to the banking business. In this sense, the Bank supervises the operating segment income (loss) for the fiscal year in order to make decisions about resources to be allocated to the segment and assess its performance, which is measured on a consistent basis with the profit or loss in the Financial Statements.
| 22. | INCOME TAX |
|---|---|
| a) | Inflation adjustment on income tax |
| --- | --- |
Tax Reform Law 27430, amended by Laws 27468 and 27541, established the following, regarding inflation adjustment on income tax for the fiscal years beginning on January 1, 2018:
| i) | Such adjustment will be applicable in<br> the fiscal year in which the variation of the CPI is higher than 100% for the thirty-six<br> months before the end of the tax period. |
|---|---|
| ii) | Regarding the first, second and third<br> fiscal year after its effective date, this procedure will be applicable if the variation<br> of the abovementioned index, calculated from the beginning until the end of each of those<br> fiscal years exceeds 55%, 30% and 15% for the first, second and third fiscal years of application,<br> respectively. |
| --- | --- |
| iii) | The positive or negative inflation adjustment,<br> as the case may be, corresponding to the first, second and third fiscal years beginning on<br> January 1, 2018, shall be allocated one third in the fiscal year for which the adjustment<br> is calculated and the remaining two thirds in equal parts in the following two immediate<br> fiscal years. |
| --- | --- |
| iv) | The positive or negative inflation adjustment,<br> corresponding to the first and second fiscal years beginning on January 1, 2019, shall<br> be allocated one sixth to the fiscal year in which the adjustment is determined and the remaining<br> five sixth in the following immediate fiscal years. |
| --- | --- |
| v) | For fiscal years beginning on January 1,<br> 2021, 100% of the adjustment may be deducted in the year in which it is determined. |
| --- | --- |
As of March 31, 2023 and December 31, 2022, all the conditions established by the income tax Law to practice the inflation adjustment are met and the current and deferred income tax was recognized, including the effects of the application of the inflation adjustment on income taxes established by Law (see section “Fiscal years 2019 and 2020” and “Fiscal year 2021” of this note).
| b) | Income tax rate |
|---|
On June 16, 2021, through Decree No. 387/2021, Law No. 27630 was issued. This law established for fiscal years beginning on or after January 1, 2021, a progressive tax rates scheme of 25%, 30% and 35% which will be applied, on a progressively basis, to the taxable accumulated net profit at the end of each fiscal year.
| - 40 - |
| --- |
NOTES TO THE CONDENSED CONSOLIDATED INTERIMFINANCIAL STATEMENTS
AS OF MARCH 31, 2023
(Translation of Financial Statements originally issued in Spanish – See Note 45)
(Figures stated in thousands of pesos in constant currency)
| c) | The main items of income tax expense<br> in the condensed consolidated interim financial statements are as follows: | |||||
|---|---|---|---|---|---|---|
| Description | 03/31/2023 | 03/31/2022 | ||||
| --- | --- | --- | --- | --- | --- | --- |
| Current income tax expense | 4,782,208 | 1,076,359 | ||||
| Loss for deferred income taxes | 388,185 | 1,974,417 | ||||
| Monetary effects | 397,203 | 168,544 | ||||
| Income tax loss recorded in the statement of income | 5,567,596 | 3,219,320 | ||||
| Income tax gain recorded in other comprehensive income | (353,031 | ) | (342,081 | ) | ||
| Total | 5,214,565 | 2,877,239 |
Fiscal years 2019 and 2020
As decided by the Board of Directors in the meeting held on May 11, 2020, considering certain case law on the matter assessed by its legal counsel and tax advisors, on May 26 of that year, the Bank filed with the Administración Federal de Ingresos Públicos (AFIP, for its acronym in Spanish) its annual income tax return considering the total effect of the inflation adjustment on income tax (see section a) iv) of this note). As a result, the current income tax determined by Banco Macro SA for fiscal year 2019 amounted to 7,002,124 (not restated). The same criterion was applied to determine the annual income tax report for 2020, which generated accrued income tax for Banco Macro SA for such fiscal year that amounted to 9,933,210 (not restated).
In addition, on July 23, 2021, the Bank filed a reimbursement action with the AFIP requesting that 254,305 (not restated) paid as income tax for the 2020 tax period be reimbursed.
As to the tax periods mentioned in previous paragraphs, on November 1, 2021, the AFIP notified the beginning of an income tax audit, which is in progress.
Along with the filings mentioned in the first paragraph of this section, on December 28, 2021, the Bank filed petitions for declaratory judgment with the Federal Administrative Contentious Court for the periods under analysis. The file 22274/2021, for the fiscal year 2019, is in process in Court No. 12 and the file 22278/2021, for the fiscal year 2020, is in process in Court No. 1.
Fiscal year 2021
On October 17, 2022, Banco Macro SA filed a reimbursement action with the AFIP requesting that 382,189 paid as income tax for the 2021 tax period be reimbursed.
On January 3, 2023, the AFIP notified the beginning of an income tax audit related to the abovementioned fiscal year, which is in progress.
Reimbursement actions – Fiscal years 2013 to 2017 and 2018
On October 24, 2019, Banco Macro SA filed with the AFIP-DGI (Argentine tax authorities) two reimbursement actions under the terms established by the first paragraph of section 81, Law No. 11683 requesting the reimbursement of 4,782,766 and 5,015,451 (not restated amounts) paid to tax authorities as income tax during tax periods 2013 through 2017 and 2018, respectively, arising from the impossibility to apply the adjustment for inflation and other adjustment mechanisms set forth by Income Tax Law (prior to the amendments introduced by Laws No. 27430 and 27468 for periods 2013 through 2017, and as revised in 2019 and amended for the 2018 tax period), plus the related compensatory interest (SIGEA [case and file management system] files No. 19144-14224/2019 and 19144-14222/2019). Since tax authorities have not yet issued a resolution with respect to the abovementioned claims, on August 7, 2020, the Bank filed both reimbursement requests under the terms of section 81, Law No. 11683 with the Federal Contentious and Administrative Trial Courts, which are pending in Courts No. 8 and 2 of such jurisdiction, respectively (cases No. 11285/2020 and 11296/2020). Currently, in connection with the file for the fiscal year 2018, the evidence stage is closed and the process for allegation was delivered.
| - 41 - |
| --- |
NOTES TO THE CONDENSED CONSOLIDATED INTERIMFINANCIAL STATEMENTS
AS OF MARCH 31, 2023
(Translation of Financial Statements originally issued in Spanish – See Note 45)
(Figures stated in thousands of pesos in constant currency)
In connection with the tax periods mentioned in the previous paragraph, on December 19, 2019, the AFIP notified the beginning of the income tax audit for the 2018 tax period, and on May 3, 2021, it notified the beginning of the income tax audit for periods 2013 through 2017. On October 4, 2021, the AFIP ended the audit for periods 2013 through 2017 as the Bank had exercised in due time its right to resort to justice, and that the admission of reimbursement is subject to a court decision.
| 23. | COMMISSIONS INCOME | |||
|---|---|---|---|---|
| Composition | 03/31/2023 | 03/31/2022 | ||
| --- | --- | --- | --- | --- |
| Performance obligations satisfied at a point in time | ||||
| Commissions related to obligations | 13,691,824 | 12,866,215 | ||
| Commissions related to credit cards | 7,973,631 | 7,583,910 | ||
| Commissions related to insurance | 1,309,301 | 1,334,386 | ||
| Commissions related to securities value | 575,383 | 437,825 | ||
| Commissions related to trading and foreign exchange transactions | 513,177 | 495,325 | ||
| Commissions related to loans and other financing | 79,665 | 94,871 | ||
| Commissions related to financial guarantees granted | 1,800 | 1,149 | ||
| Performance obligations satisfied over certain time period | ||||
| Commissions related to credit cards | 107,867 | 197,230 | ||
| Commissions related to trading and foreign exchange transactions | 20,578 | 18,047 | ||
| Commissions related to loans and other financing | 18,721 | 103 | ||
| Commissions related to obligations | 464 | 468 | ||
| Total | 24,292,411 | 23,029,529 | ||
| 24. | DIFFERENCES IN QUOTED PRICES OF GOLD AND FOREIGN CURRENCY | |||
| --- | --- | |||
| Composition | 03/31/2023 | 03/31/2022 | ||
| --- | --- | --- | --- | --- |
| Translation of foreign currency assets and liabilities into pesos | 36,453,833 | 5,792,020 | ||
| Income from foreign currency exchange | 219,302 | 511,028 | ||
| Total | 36,673,135 | 6,303,048 | ||
| 25. | OTHER OPERATING INCOME | |||
| --- | --- | |||
| Composition | 03/31/2023 | 03/31/2022 | ||
| --- | --- | --- | --- | --- |
| Services | 3,140,650 | 2,746,765 | ||
| Adjustments and interest from other receivables | 919,766 | 627,392 | ||
| Adjustments from other receivables with CER clauses | 548,863 | 249,100 | ||
| Other receivables for financial intermediation | 126,864 | 413,698 | ||
| Sale of investment in properties and other non-financial assets | 26,320 | |||
| Other | 979,703 | 2,709,198 | ||
| Total | 5,715,846 | 6,772,473 |
| - 42 - |
| --- |
NOTES TO THE CONDENSED CONSOLIDATED INTERIMFINANCIAL STATEMENTS
AS OF MARCH 31, 2023
(Translation of Financial Statements originally issued in Spanish – See Note 45)
(Figures stated in thousands of pesos in constant currency)
| 26. | EMPLOYEE BENEFITS | |||
|---|---|---|---|---|
| Composition | 03/31/2023 | 03/31/2022 | ||
| --- | --- | --- | --- | --- |
| Remunerations | 15,818,782 | 13,626,686 | ||
| Payroll taxes | 4,023,266 | 3,141,905 | ||
| Compensations and bonuses to employees | 2,839,197 | 2,502,635 | ||
| Employee services | 786,866 | 773,038 | ||
| Total | 23,468,111 | 20,044,264 | ||
| 27. | ADMINISTRATIVE EXPENSES | |||
| --- | --- | |||
| Composition | 03/31/2023 | 03/31/2022 | ||
| --- | --- | --- | --- | --- |
| Taxes | 1,978,033 | 1,763,252 | ||
| Maintenance, conservation and repair expenses | 1,803,579 | 1,818,055 | ||
| Armored truck, documentation and events | 1,624,523 | 1,589,065 | ||
| Other fees | 1,261,671 | 1,039,156 | ||
| Security services | 1,114,330 | 1,168,002 | ||
| Electricity and communications | 1,065,393 | 1,112,569 | ||
| Software | 782,341 | 863,733 | ||
| Advertising and publicity | 476,443 | 518,560 | ||
| Fees to directors and syndics | 470,190 | 563,983 | ||
| Representation, travel and transportation expenses | 240,102 | 135,957 | ||
| Stationery and office supplies | 104,460 | 78,158 | ||
| Insurance | 96,506 | 135,241 | ||
| Hired administrative services | 83,485 | 78,128 | ||
| Leases | 45,736 | 57,127 | ||
| Other | 503,681 | 343,748 | ||
| Total | 11,650,473 | 11,264,734 | ||
| 28. | OTHER OPERATING EXPENSES | |||
| --- | --- | |||
| Composition | 03/31/2023 | 03/31/2022 | ||
| --- | --- | --- | --- | --- |
| Turnover tax | 13,993,971 | 11,339,648 | ||
| From credit cards | 5,149,418 | 4,886,225 | ||
| Charges for other provisions | 661,986 | 874,105 | ||
| Deposit guarantee fund contributions | 606,291 | 561,131 | ||
| Other adjustments and interests for miscellaneous obligations | 479,168 | 111,900 | ||
| Insurance claims | 229,513 | 109,893 | ||
| Donations | 206,448 | 255,985 | ||
| Taxes | 46,214 | 144,843 | ||
| Loss from sale or impairment of investment in properties and other non-financial assets | 45,101 | |||
| Other | 2,418,283 | 2,396,513 | ||
| Total | 23,836,393 | 20,680,243 |
| - 43 - |
| --- |
NOTES TO THE CONDENSED CONSOLIDATED INTERIMFINANCIAL STATEMENTS
AS OF MARCH 31, 2023
(Translation of Financial Statements originally issued in Spanish – See Note 45)
(Figures stated in thousands of pesos in constant currency)
| 29. | ADDITIONAL DISCLOSURES IN THE STATEMENT OF CASH FLOWS |
|---|
The statement of cash flows presents the changes in cash and cash equivalents derived from operating activities, investing activities and financing activities during the period. For the preparation of the statement of cash flows, the Bank adopted the indirect method for operating activities and the direct method for investment activities and financing activities.
The Bank considers as “Cash and cash equivalents” the item Cash and deposits in banks and those financial assets that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value.
For the preparation of the statement of cash flows the Bank considered the following:
| - | Operating activities: the normal revenue-producing<br> activities of the Bank as well as other activities that cannot qualify as investing or financing<br> activities. |
|---|---|
| - | Investing activities: the acquisition,<br> sale and disposal by other means of long-term assets and other investments not included in<br> cash and cash equivalents. |
| --- | --- |
| - | Financing activities: activities that<br> result in changes in the size and composition of the shareholders’ equity and liabilities<br> of the Bank and that are not part of the operating or investing activities. |
| --- | --- |
The table below presents the reconciliation between the item “Cash and cash equivalents” in the statement of cash flows and the relevant accounting items of the statement of financial position:
| Reconciliation | 03/31/2023 | 12/31/2022 | 03/31/2022 | 12/31/2021 | ||||
|---|---|---|---|---|---|---|---|---|
| Cash and deposits in banks | 297,608,616 | 304,439,346 | 358,603,033 | 408,645,920 | ||||
| Debt Securities at fair value through profit or loss | 180,776 | 11,524 | ||||||
| Other debt securities | 656,850,517 | 607,387,102 | 437,742,936 | 325,054,467 | ||||
| Loans and other financing | 1,044,942 | 1,078,113 | 1,133,625 | 1,218,235 | ||||
| Total | 955,504,075 | 912,904,561 | 797,660,370 | 734,930,146 | ||||
| 30. | CAPITAL STOCK | |||||||
| --- | --- |
The Bank’s subscribed and paid-in capital from December 31, 2020 to March 31, 2023, amounted to 639,413. The capital stock composition is detailed in Exhibit K to the condensed separate interim Financial Statements.
| 31. | EARNINGS PER SHARE - DIVIDENDS |
|---|
Basic earnings per share were calculated by dividing net profit attributable to common shareholders of the Bank by the weighted average number of common shares outstanding during the period.
To determine the weighted average number of common shares outstanding during the period, the Bank used the number of common shares outstanding at the beginning of the period adjusted, if applicable, by the number of common shares bought back or issued during the period multiplied by the number of days that the shares were outstanding in the period. Note 30 provides a breakdown of the changes in the Bank’s capital stock.
The calculation of basic earnings per share is disclosed in the table of Earnings per share included in the condensed consolidated interim statement of income. See additionally note 41.
| - 44 - |
| --- |
NOTES TO THE CONDENSED CONSOLIDATED INTERIMFINANCIAL STATEMENTS
AS OF MARCH 31, 2023
(Translation of Financial Statements originally issued in Spanish – See Note 45)
(Figures stated in thousands of pesos in constant currency)
Dividends paid and proposed
During 2020 and 2021, the BCRA issued Communiqués that suspended the payment of earnings distributions resolved by the Shareholders’ Meetings. As a consequence of the abovementioned suspensions, as of December 31, 2021 dividends pending distribution amounted to 26,580,415 (not restated), which had been approved by the Shareholders’ Meetings held on April 30 and October 21, 2020 and April 30, 2021.
On December 16, 2021, the BCRA issued Communiqué “A” 7421, which established as follows: (i) from January 1, 2022, through December 31, 2022, financial institutions will be allowed to distribute up to 20% of the amount of earnings that should have been distributed if the “Earnings distributions” rules had been applied, and (ii) financial institutions that have the BCRA’s authorization for the earnings distributions have to perform it in 12 equal, monthly and consecutive installments.
On May 12, 2022, the BCRA approved the dividends distribution requested by the Bank in accordance with the Communiqué mentioned in the previous paragraph for an amount of 19,751,444 (not restated), which were paid during the fiscal year ended December 31, 2022 according to the schedule. Additionally, the balance of the dividends approved pending to be paid because they exceed the abovementioned limit, amounted to 6,828,971 (not restated).
Moreover, the Shareholders’ Meeting held on April 29, 2022, resolved to distribute cash dividends or dividends in kind, in this case, measured at market value for an amount of 14,187,873 (not restated), representing 22,18 pesos per share, subject to prior authorization from the BCRA which, added to the dividends still to be paid because they exceed the abovementioned limited, amounted to 21,016,844 (not restated) and were recorded in a “Reserve for dividends pending authorization from the BCRA”. Through Communiqué “A” 7719 issued on March 9, 2023, the BCRA established that from April 1, 2023 up to December 31, 2023, financial institutions, which have the BCRA’s authorization, will be allowed to distribute up to 40% of the amount of earnings that should have been distributed if the “Earnings distributions” rules had been applied, in 6 equal, monthly and consecutive installments.
Finally, the Shareholders’ Meeting held on April 25, 2023, decided to distribute a cash dividend and/or a dividend in kind, in this case measured at market value, for an amount of 75,040,918, representing 117.36 pesos per share, prior to BCRA authorization. On May 12, 2023 the BCRA authorized this earning distribution that shall be paid in 6 equal, monthly and consecutive installments. See also note 41.
| 32. | DEPOSIT GUARANTEE INSURANCE |
|---|
Law No, 24485 and Decree No, 540/1995 created the Deposit Guarantee Insurance System, which was featured as a limited, compulsory and onerous system, aimed at covering the risks of bank deposits, as subsidiary and supplementary to the deposit privilege and protection system established under the Financial Entities Law. The abovementioned legislation also provided for the incorporation of Sedesa with the exclusive purpose of managing the Deposit Guarantee Fund (DGF), Sedesa was incorporated in August 1995.
Banco Macro SA holds a 7.6859% interest in the capital stock of Sedesa according to the percentages disclosed by BCRA Communiqué “B” 12503 on March 22, 2023.
All deposits in pesos and foreign currency placed in participating entities in the form of checking accounts, savings accounts, certificates of deposits or other forms of deposit that the BCRA may determine from time to time shall be subject to the abovementioned Deposit Guarantee Insurance System up to the amount of 6,000 which must meet the requirements provided for in Presidential Decree 540/1995 and other requirements that the regulatory authority may determine from time to time.
On the other hand, the BCRA provided from the exclusion of the guarantee system, among others, of any deposits made by other financial entities, deposits made by persons related to the Bank and securities deposits.
| - 45 - |
| --- |
NOTES TO THE CONDENSED CONSOLIDATED INTERIMFINANCIAL STATEMENTS
AS OF MARCH 31, 2023
(Translation of Financial Statements originally issued in Spanish – See Note 45)
(Figures stated in thousands of pesos in constant currency)
| 33. | RESTRICTED ASSETS |
|---|
As of March 31, 2023 and December 31, 2022, the following Bank’s assets are restricted:
| Composition | 03/31/2023 | 12/31/2022 | |||
|---|---|---|---|---|---|
| Cash and Deposits in Banks | |||||
| · | Fondo de Riesgo Fintech SGR – Deposits in other entities (1). | 760 | 71 | ||
| Subtotal Cash and Deposits in Banks | 760 | 71 | |||
| Debt securities at fair value through profit or loss and other debt securities | |||||
| · | Fondo de Riesgo Fintech SGR – Debt securities at fair value through profit or loss and other debt securities (1). | 4,167,968 | 5,771,399 | ||
| · | Federal government bonds in dual currency at discount - Maturity: 07/21/2023 as of March 31, 2023 and Government Treasury Bonds in pesos adjusted by CER 1.40% - Maturity 03/27/2023, as of December 31, 2022, for the contribution to the Guarantee Fund II in BYMA according to section 45, Law 26831, and supplementary regulations established by CNV standards (NT 2013, as amended). | 1,186,478 | 18,127 | ||
| · | Letters of National Estate at discount in pesos – Maturity 05/31/2023 as of March 31, 2023 and Letters of National Estate in pesos adjusted by CER – Maturity: 02/17/2023, as of December 31, 2022. | 134,926 | 181,284 | ||
| · | Discount bonds in pesos regulated by Argentine legislation, maturing in 2033 for the minimum statutory guarantee account required for Agents to act in the new categories contemplated under Resolution No. 622/2013, as amended, of the Argentine Securities Commission (CNV). | 109,535 | 113,036 | ||
| · | Discount bonds in pesos regulated by Argentine legislation, maturing in 2033, as of March 31, 2023 and Federal Government Treasury Bonds in pesos adjusted by CER 1.40% - Maturity 03/27/2023 as of December 31, 2022, securing the sectoral Credit Program of the Province of San Juan, production investment financing fund. | 37,388 | 101,426 | ||
| · | Discount bonds in pesos regulated by Argentine legislation, maturing in 2033, as of March 31, 2023 and Federal Government Treasury Bonds in pesos adjusted by CER 1.40% - Maturity 03/27/2023 as of December 31, 2022, securing the regional economies Competitiveness Program – IDB loan No. 3174/OC-AR. | 3,944 | 41,002 | ||
| Subtotal debt securities at fair value through profit or loss and other debt securities | 5,640,239 | 6,226,274 | |||
| Other financial assets | |||||
| · | Interests derived from contributions made as protector partner (2). | 2,420,625 | 2,938,082 | ||
| · | Mutual fund shares for minimum statutory guarantee account required for Agents to act in the new categories contemplated under Resolution No. 622/13, as amended, of the CNV. | 171,037 | 177,061 | ||
| · | Fondo de Riesgo Fintech SGR – Mutual fund shares (1). | 269,290 | 146,690 | ||
| · | Sundry debtors – Other. | 98,736 | 10,697 | ||
| · | Sundry debtors – attachment within the scope of the claim filed by the DGR against the CABA for turnover tax differences. | 827 | 1,007 | ||
| Subtotal Other financial assets | 2,960,515 | 3,273,537 | |||
| Loans and other financing – non-financial private sector and foreign residents | |||||
| · | Fondo de Riesgo Fintech SGR – Loans and other financing (1). | 14,100 | 6,208 | ||
| **** | Subtotal loans and other financing | **** | 14,100 | **** | 6,208 |
| - 46 - |
| --- |
NOTES TO THE CONDENSED CONSOLIDATED INTERIMFINANCIAL STATEMENTS
AS OF MARCH 31, 2023
(Translation of Financial Statements originally issued in Spanish – See Note 45)
(Figures stated in thousands of pesos in constant currency)
| Composition (contd.) | 03/31/2023 | 12/31/2022 | |||
|---|---|---|---|---|---|
| Financial assets delivered as a guarantee | |||||
| · | Special guarantee checking accounts opened in the BCRA for transactions related to the electronic clearing houses and similar entities. | 25,642,754 | 30,219,506 | ||
| · | For securities forward contracts | 5,111,437 | |||
| · | Guarantee deposits related to credit and debit card transactions. | 4,578,586 | 4,922,325 | ||
| · | Other guarantee deposits. | 2,165,628 | 2,132,955 | ||
| Subtotal Financial assets delivered as guarantee | 37,498,405 | 37,274,786 | |||
| Other non-financial assets | |||||
| · | Real property related to a call option sold. | 2,988,435 | 2,989,930 | ||
| · | Fondo de Riesgo Fintech SGR – Other non-financial assets (1). | 2,413 | 15,774 | ||
| Subtotal other non-financial assets | 2,990,848 | 3,005,704 | |||
| Total | 49,104,867 | 49,786,580 | |||
| (1) | According to Law 24467, as amended,<br> and Fintech SGR By-Law, this entity has a risk fund (“Fondo de Riesgo”) which<br> its main objective is to cover the guarantees granted to the protector partners and third<br> parties. The assets of the risk fund could only be applied to partners withdrawals, to cover<br> guarantees and other direct expenses. | ||||
| --- | --- | ||||
| (2) | As of March 31, 2023 and December 31,<br> 2022, it is related to the risk fund Fintech SGR and Garantizar SGR. In order to keep tax<br> benefits related to these contributions, they must be maintained between two and three years<br> from the date they were made. | ||||
| --- | --- | ||||
| 34. | TRUST ACTIVITIES | ||||
| --- | --- |
The Bank is related to several types of trusts, The different trust agreements according to the business purpose sought by the Bank are disclosed below:
34.1 Financial trusts for investment purposes
Debt securities include mainly prepayments towards the placement price of provisional trust securities of the financial trusts under public and private offerings (Accicom, Confibono and Secubono). The assets managed for these trusts are mainly related to securitizations of consumer loans. Trust securities are placed once the public offering is authorized by the CNV. Upon expiry of the placement period, once all trust securities have been placed on the market, the Bank recovers the disbursements made, plus an agreed-upon compensation. If after making the best efforts, such trust securities cannot be placed, the Bank will retain the definitive trust securities.
In addition, the Bank’s portfolio is completed with financial trusts for investment purposes, trust securities of definitive financial trusts in public and private offering (Secubono, Confibono, Supercanal and Solidario de Infraestructura Nasa IV) and certificates of participation (Arfintech).
As of March 31, 2023 and December 31, 2022, debt securities and certificates of participation in financial trusts for investment, amounted to 635,897 and 1,157,552, respectively.
According to the latest accounting information available as of the date of issuance of these condensed consolidated interim Financial Statements, the corpus assets of the trusts exceed the carrying amount in the related proportions.
| - 47 - |
| --- |
NOTES TO THE CONDENSED CONSOLIDATED INTERIMFINANCIAL STATEMENTS
AS OF MARCH 31, 2023
(Translation of Financial Statements originally issued in Spanish – See Note 45)
(Figures stated in thousands of pesos in constant currency)
34.2. Trusts created using financial assets transferred by the Bank (securitization)
The Bank transferred financial assets (loans) to trusts for the purpose of issuing and selling securities for which collection is guaranteed by the cash flow resulting from such assets or group of assets. Through this way the funds that were originally used by the Bank to finance the loans are obtained earlier.
As of March 31, 2023 and December 31, 2022, considering the latest available accounting information as of the date of issuance of these condensed consolidated interim Financial Statements, the assets managed through Macro Fiducia SAU (subsidiary) of this type of trusts amounted to 1,953 and 14,218, respectively.
34.3. Trusts guaranteeing loans granted by the Bank
As it is common in the Argentine banking market, the Bank requires, in some cases, that the debtors present certain assets or entitlements to receive assets in a trust as a guarantee for the loans granted. This way, the risk of losses is minimized and access to the security is guaranteed in case of the debtor's non-compliance.
Trusts usually act as conduits to collect cash from the debtor’s flow of operations and send such cash to the Bank for the payment of the debtor’s loans and thus ensure compliance with the obligations assumed by the trustor and guaranteed through the trust.
Additionally, other guarantee trusts manage specific assets, mainly real property.
Provided there is no non-compliance or delays by the debtor in the obligations assumed with the beneficiary, the trustee shall not execute the guarantee and all excess amounts as to the value of the obligations are reimbursed by the trustee to the debtor.
As of March 31, 2023 and December 31, 2022, considering the latest available accounting information as of the date of issuance of these condensed consolidated interim Financial Statements, the assets managed by the Bank amounted to 2,889,215 and 3,312,662, respectively.
34.4. Trusts in which the Bank acts as Trustee (Management)
The Bank, through its subsidiaries, performs management duties of the corpus assets directly according to the agreements, performing only trustee duties and has no other interests in the trust.
In no case shall the Trustee be liable with its own assets or for any obligation deriving from the performance as trustee. Such obligations do not imply any type of indebtedness or commitment for the trustee and they will be fulfilled only through trust assets. In addition, the trustee will not encumber the corpus assets or dispose of them beyond the limits established in the related trust agreements. The fees earned by the Bank from its role as trustee are calculated according to the terms and conditions of the agreements.
Trusts usually manage funds derived from the activities performed by trustors, for the following main purposes:
| - | Guaranteeing, in favor of the beneficiary<br> the existence of the resources required to finance and/or pay certain obligations, such as<br> the payment of amortization installments regarding work or service certificates, and the<br> payment of invoices and fees stipulated in the related agreements. |
|---|---|
| - | Promoting the production development of the<br> private economic sector at a provincial level. |
| --- | --- |
| - | Being a party to public work concession agreements<br> granting road exploitation, management, keeping and maintenance. |
| --- | --- |
As of March 31, 2023 and December 31, 2022, considering the latest available accounting information as of the date of issuance of these condensed consolidated interim Financial Statements, the assets managed by the Bank amounted to 18,984,749 and 21,681,349, respectively.
| - 48 - |
| --- |
NOTES TO THE CONDENSED CONSOLIDATED INTERIMFINANCIAL STATEMENTS
AS OF MARCH 31, 2023
(Translation of Financial Statements originally issued in Spanish – See Note 45)
(Figures stated in thousands of pesos in constant currency)
| 35. | COMPLIANCE WITH CNV REGULATIONS |
|---|
35.1 Compliance with CNV standards to act in the different agent categories defined by the CNV:
35.1.1 Operations of Banco Macro SA
Considering Banco Macro SA’s current operations, and according to the different categories of agents established by CNV rules (as per General Resolution No, 622/2013, as amended), the Bank is registered with this agency as agent for the custody of collective investment products of mutual funds (AC PIC FCI, for their acronyms in Spanish) – Comprehensive Depositary company, clearing and settlement agent and trading agent (ALyC and AN – comprehensive, for their acronyms in Spanish) and Guarantee Entity (in the process of being registered), and is registered in the “List of Authorized companies to guarantee capital market instruments”.
Additionally, the Bank’s shareholders’ equity as of March 31, 2023 stated in UVAs amounted to 2,898,708,425 and exceeds the minimum amount required by such regulation for the different categories of agents in which the Bank is registered, amounting to 470,350 UVAs as of that date, and the minimum required statutory guarantee account of 235,175 UVAs, which the Bank paid-in with government securities as described in note 33 and the cash deposits in BCRA accounts 000285 and 80285 belonging to the Bank.
35.1.2 Operations of Macro Securities SAU
Considering the current operations of this subsidiary, and according to the provisions established by CNV effective as of the approval of General Resolution No, 622/2013, as amended, issued by such agency, such Company is registered under the following categories: clearing and settlement agent, trading agent, comprehensive trading agent and mutual investment funds placement and distribution agent and comprehensive mutual investment funds placement and distribution agent (ALyC, AN – comprehensive, ACyD FCI and ACyDI FCI).
Additionally, the shareholders’ equity of such Company as of March 31, 2023 stated in UVAs amounted to 62,756,239 and exceeds the minimum amount required by such regulation, amounting to 470,350 UVAs and the minimum statutory guarantee account required a minimum of 50% of the minimum amount of Shareholders’ equity, which the Company paid-in with mutual fund shares. Moreover, as result of the Company acting as “ACyD FCI and ACyDI FCI” an amount of 163,500 UVAs will be added to minimum Shareholder’s equity.
35.1.3 Operations of Macro Fondos Sociedad Gerente de Fondos Comunes de Inversión SA
Considering the current operations of this subsidiary, and according to the provisions established by CNV effective as of the approval of General Resolution No, 622/2013, as amended, issued by such agency, such Company is registered as agent for the Administration of Collective Investment Products of Mutual Funds,
Additionally, the shareholders’ equity of this Company as of March 31, 2023 stated in UVAs amounted to 18,999,680 and exceeds the minimum amount required by such regulation, amounting to 150,000 UVAs plus 20,000 UVAs per each additional mutual fund it manages. The minimum statutory guarantee account required a minimum of 50% of the minimum amount of Shareholders’ equity, which the Company paid-in with mutual fund shares.
35.1.4 Operations of Macro Fiducia SAU
Considering the current operations of this subsidiary and according to the provisions established by CNV effective as of the approval of General Resolution 622/2013, as amended, issued by such agency, such Company is registered as financial trustee agent and non-financial trustee agent,
Additionally, the shareholders’ equity of such Company as of March 31, 2023 stated in UVAs amounted to 1,038,997 an exceeds the minimum amount required by General Resolution 795 established in 950,000 UVAs. The minimum statutory guarantee account required a minimum of 50% of the minimum amount of Shareholders’ equity, which the Company paid-in with mutual fund shares.
| - 49 - |
| --- |
NOTES TO THE CONDENSED CONSOLIDATED INTERIMFINANCIAL STATEMENTS
AS OF MARCH 31, 2023
(Translation of Financial Statements originally issued in Spanish – See Note 45)
(Figures stated in thousands of pesos in constant currency)
35.2 Documents in custody
As a general policy, the Bank delivers for custody to third parties the documentary support of its aged accounting and management operations, i.e. those whose date is prior to the last fiscal year-end, except for the Inventory Book, in which aging is deemed to include those with a date prior to the five fiscal years ended. In compliance with CNV General Resolution No, 629 requirements, the Bank has placed (i) the Inventory Books for fiscal years ended up to and including December 31, 2017, and (ii) certain documentation supporting the economic transactions for fiscal years ended up to and including December 31, 2017, under the custody of the following companies: AdeA Administradora de Archivos SA (warehouse located at Ruta 36, km 31,5, Florencio Varela, Province of Buenos Aires) and ADDOC Administración de Documentos SA (warehouse located at Avenida Circunvalación Agustín Tosco with no number, Colectora Sur, between Puente San Carlos and Puente 60 blocks, Province of Córdoba and Avenida Luis Lagomarsino 1750, formerly Ruta 8 Km 51,200, Pilar, Province of Buenos Aires).
In addition, the documentary support on a digital format is protected on the Bank’s servers.
35.3 As depositary of mutual funds
As of March 31, 2023 Banco Macro SA, in its capacity as depositary company, holds in custody the shares in mutual funds subscribed by third parties and assets from the following mutual funds:
| Funds | Number of shares | Equity | ||
|---|---|---|---|---|
| Argenfunds Abierto Pymes | 3,247,988,309 | 14,651,935 | ||
| Argenfunds Ahorro Pesos | 131,172,740 | 3,359,436 | ||
| Argenfunds Gestión Pesos | 100,000 | 100 | ||
| Argenfunds Infraestructura | 32,143,884 | 59,932 | ||
| Argenfunds Inversión Dólares | 1,000 | 177 | ||
| Argenfunds Inversión Pesos | 1,700,000,000 | 1,936,696 | ||
| Argenfunds Liquidez | 8,634,473,795 | 34,183,863 | ||
| Argenfunds Renta Argentina | 159,037,501 | 3,473,175 | ||
| Argenfunds Renta Balanceada | 588,876,842 | 7,455,322 | ||
| Argenfunds Renta Capital | 17,625,973 | 3,747,571 | ||
| Argenfunds Renta Crecimiento | 4,166,026 | 841,036 | ||
| Argenfunds Renta Dinámica | 86,093,838,394 | 5,798,519 | ||
| Argenfunds Renta Fija | 299,024,867 | 10,374,659 | ||
| Argenfunds Renta Flexible | 136,970,768 | 1,113,531 | ||
| Argenfunds Renta Global | 201,719,347 | 2,025,639 | ||
| Argenfunds Renta Mixta | 1,199,757,949 | 1,798,617 | ||
| Argenfunds Renta Mixta Plus | 1,545,519 | 279,901 | ||
| Argenfunds Renta Pesos | 81,087,140 | 2,176,455 | ||
| Argenfunds Renta Total | 548,961,979 | 1,477,932 | ||
| Argenfunds Renta Variable | 272,791,751 | 21,757 | ||
| Argenfunds Retorno Absoluto | 202,139,415 | 1,068,283 | ||
| Pionero Acciones | 16,212,910 | 2,460,415 | ||
| Pionero Ahorro Dólares | 12,365,169 | 2,427,416 | ||
| Pionero Argentina Bicentenario | 424,876,097 | 3,223,015 |
| - 50 - |
| --- |
NOTES TO THE CONDENSED CONSOLIDATED INTERIMFINANCIAL STATEMENTS
AS OF MARCH 31, 2023
(Translation of Financial Statements originally issued in Spanish – See Note 45)
(Figures stated in thousands of pesos in constant currency)
| Funds (contd.) | Number of shares | Equity | ||
|---|---|---|---|---|
| Pionero Capital | 376,276,153 | 929,729 | ||
| Pionero Crecimiento | 1,145,554,437 | 1,348,976 | ||
| Pionero Desarrollo | 5,742,658,493 | 8,259,625 | ||
| Pionero Empresas FCI Abierto Pymes | 210,915,095 | 2,803,001 | ||
| Pionero FF | 56,968,862 | 2,390,850 | ||
| Pionero Gestión | 2,001,934,552 | 7,198,628 | ||
| Pionero Infraestructura | 330,550,968 | 357,451 | ||
| Pionero Pesos | 1,472,303,114 | 31,630,097 | ||
| Pionero Pesos Plus | 16,164,757,669 | 208,878,306 | ||
| Pionero Renta | 57,166,197 | 9,182,628 | ||
| Pionero Renta Ahorro | 331,661,894 | 17,259,364 | ||
| Pionero Renta Ahorro Plus | 571,103,803 | 4,644,021 | ||
| Pionero Renta Balanceado | 9,686,522,033 | 19,590,715 | ||
| Pionero Renta Estratégico | 702,511,445 | 6,933,704 | ||
| Pionero Renta Fija Dólares | 3,031,214 | 439,949 | ||
| Pionero Renta Mixta I | 93,274,749 | 1,322,850 | ||
| Pionero Retorno | 3,837,907 | 5,422 | ||
| 36. | ACCOUNTING ITEMS THAT IDENTIFY THE COMPLIANCE WITH MINIMUM CASH REQUIREMENTS | |||
| --- | --- |
The items recognized by the Bank to constitute the minimum cash requirement effective for March 2023 are listed below, indicating the amounts as of month-end of the related items:
| Items | Banco Macro SA | |
|---|---|---|
| Cash and deposits in banks | ||
| Amounts in BCRA accounts | 181,264,323 | |
| Other debt securities | ||
| Government securities computable for the minimum cash requirements | 221,602,623 | |
| Financial assets delivered as guarantee | ||
| Special guarantee accounts with the BCRA | 25,642,754 | |
| Total | 428,509,700 |
| - 51 - |
| --- |
NOTES TO THE CONDENSED CONSOLIDATED INTERIMFINANCIAL STATEMENTS
AS OF MARCH 31, 2023
(Translation of Financial Statements originally issued in Spanish – See Note 45)
(Figures stated in thousands of pesos in constant currency)
| 37. | PENALTIES APPLIED TO THE ENTITY AND SUMMARY PROCEEDINGS INITIATED BY THE BCRA |
|---|
BCRA Communiqué “A” 5689, as supplemented and amended, requires financial institutions to disclose in their Financial Statements certain information regarding summaries and penalties received from certain regulatory authorities, regardless of the amounts involved and the final conclusions of each case.
There follows a description of the situation of Banco Macro SA as of March 31, 2023:
Summary proceedings filed by the BCRA
Financial summary proceedings: No. 1496 dated 02/24/2016.
Reason: control observations over subsidiaries. Penalty amount: 30,608 (not restated).
Proceeding filed against: Banco Macro SA and the Members of the Board of Directors (Jorge Horacio Brito, Delfín Jorge Ezequiel Carballo, Jorge Pablo Brito, Marcos Brito, Juan Pablo Brito Devoto, Luis Carlos Cerolini, Carlos Enrique Videla, Alejandro Macfarlane, Guillermo Eduardo Stanley, Constanza Brito and Emanuel Antonio Alvarez Agis).
Status: On 04/07/2016, the Bank filed the defenses and evidence on the BCRA, on 05/18/2016 the Bank requested on behalf of Mr. Delfín Jorge Ezequiel Carballo the resolution of the motion for lack of standing to be sued. On 09/09/2020, the BCRA filed Resolution No. 132/20 (notified on 02/22/2021) which acquitted Delfín Jorge Ezequiel Carballo and imposed a fine to the Bank and other responsible directors. On 03/01/2021 the Bank paid the fines. On 03/15/2021 the Bank filed a direct appeal against such resolution to the BCRA, which will be decided at Courtroom I of the Federal Civil and Commercial Court of Appeals (CNACAF, for its acronym in Spanish). The fine imposed on Mr. Jorge Horacio Brito was abrogated due to his passing. On 02/09/2023 the CNACAF issued a sentence, dismissing the direct appeals, with cost. Against such resolution, the Bank filed a Federal extraordinary appeal. As of the date of issuance of these condensed consolidated interim Financial Statements, this proceeding is pending resolution.
Criminal foreign exchange summary proceedings: No. 7642 dated 10/18/2021.
Reason: Supposed non-compliance with article 1 incs. e) and f) of the Criminal Foreign Exchange Regime (TO by Decree No, 480/95), together with points 5, 9, 15 and 18 of BCRA Communiqué “A” 6770, and points 1.2 and 5.3 of the BCRA Communiqué “A” 6844.
Responsibles: Banco Macro SA, Foreign Exchange Team Leader (Alfredo Muscari), head of Foreign Exchange and Banking Operations manager (Eduardo Roque Covello) and Compliance manager (Gustavo Emilio Pessagno).
Status: On 12/29/2021, Banco Macro SA and the natural persons subject to summary proceedings filed their joint defenses, offering evidence and requesting an acquittal. On 03/15/2022, the BCRA dismissed the previous defenses performed by the Bank and the rest of the responsibles who, on 03/25/2022, filed an extraordinary appeal and a nullity request which was dismissed by the BCRA. Against such resolution, on 04/25/2022 a complaint appeal was filed to the Economic Federal Court, Courtroom No. 5, which dismissed the abovementioned appeal and submitted the file to an administrative area to continue with the proceeding. On 04/04/2023, the Bank filed a Defense Statement, being closed the evidence stage. As of the date of issuance of these condensed consolidated interim Financial Statements, the file is still pending.
Penalties imposed by the Financial Information Unit (UIF)
File: No. 248/2014 (UIF Note Presidency 245/2013 11/26/2013) dated 07/30/2014.
Reason: alleged deficiencies in preparing certain “Reports on suspicious transactions (ROS)” due to cases of infringement detected in certain customer files. Penalty amount: 330 (not restated).
Penalty imposed on: Banco Macro SA, the members of the Board and those in charge of anti-money laundering regulation compliance (Luis Carlos Cerolini –both as Compliance Officer and Director- and Jorge Horacio Brito, Delfín Jorge Ezequiel Carballo, Juan Pablo Brito Devoto, Jorge Pablo Brito, Alejandro Macfarlane, Carlos Enrique Videla, Guillermo Eduardo Stanley, Constanza Brito, Emanuel Antonio Alvarez Agis, Marcos Brito and Rafael Magnanini, as Directors of Banco Macro SA).
Status: on 12/26/2016 the UIF passed Resolution No. 164/16 imposing fines on those responsible and issuing a favorable decision on the plea of lack of capacity to be sued lodged by Messrs. Carballo and Magnanini. On 01/26/2017 the fines imposed were paid. Against such resolution, the Bank and the individuals liable filed direct appeals, which will be decided at Room III of the CNACAF. Such appeals were dismissed through a final sentence dated 07/18/2019. On 08/15/2019, the Bank filed a federal extraordinary appeal which was dismissed through resolution dated 09/26/2019. On 10/03/2019 the Bank filed a complaint appeal before Argentine Supreme Court (CSJN, for its acronym in Spanish) which, as of the date of issuance of these condensed consolidated interim Financial Statements, is still pending resolution.
Additionally, there are pending summary proceedings before the CNV and the UIF, as described below:
File: No. 1480/2011 (CNV Resolution No. 17529) dated 09/26/2014.
Reason: potential non-compliance with the obligation to inform a “Significant Event”. Penalty amount: 500 (not restated).
| - 52 - |
| --- |
NOTES TO THE CONDENSED CONSOLIDATED INTERIMFINANCIAL STATEMENTS
AS OF MARCH 31, 2023
(Translation of Financial Statements originally issued in Spanish – See Note 45)
(Figures stated in thousands of pesos in constant currency)
Persons subject to summary proceedings: Banco Macro SA, the members of the Board, the regular members of the Statutory Audit Committee and the person/s responsible for market relations (Jorge Horacio Brito, Delfín Jorge Ezequiel Carballo, Juan Pablo Brito Devoto, Jorge Pablo Brito, Luis Carlos Cerolini, Roberto Julio Eilbaum, Alejandro Macfarlane, Carlos Enrique Videla, Guillermo Eduardo Stanley, Constanza Brito, Daniel Hugo Violatti, Ladislao Szekely, Santiago Marcelo Maidana and Herman Fernando Aner).
Status: on 10/28/2014 the Bank and the persons involved filed their defenses offering evidence and requesting their acquittal. On 08/03/2015 the term to produce evidence was closed and on 08/19/2015 the defendants lodged their memorials. On 03/04/2021, the Board of Directors of the CNV filed a resolution dismissing the nullity and imposing a fine to the Bank jointly and severally with its Directors at the moment when the facts where investigated. Against such resolution, on 05/03/2021 a direct appeal was filed. In December 2021, the CNV referred the proceedings to the Federal Civil and Commercial Court of Appeals (CNACCF, for its acronym in Spanish), under the file number 14633/2021, styled “Szekely, Ladislao et al v, CNV on appealed administrative resolution” which as of the date of issuance of these condensed consolidated interim Financial Statements, is pending.
File: No. 137/2015 (UIF Resolution No. 136/2017) dated 12/19/2017.
Reason: alleged breach to the contents of the Code of Procedure applicable to Anti-money Laundering and Terrorism Financing as Settlement and Clearing Agent at the time of an inspection of the CNV and to the Internal Audit Process referred to in its capacity as comprehensive settlement and clearing agent (UIF Resolution No. 229/2011, as amended), Penalty amount: 50 (not restated).
Persons subject to summary proceedings: Banco Macro SA, members of the Management Body during the period that is the subject matter of these summary proceedings (Jorge Horacio Brito, Jorge Pablo Brito, Juan Pablo Brito Devoto, Constanza Brito, Marcos Brito, Delfín Jorge Ezequiel Carballo, Delfín Federico Ezequiel Carballo, Carlos Enrique Videla, Alejandro Macfarlane, Guillermo Eduardo Stanley, Emmanuel Antonio Alvarez Agis, Nicolás Alejandro Todesca, Carlos Alberto Giovanelli, José Alfredo Sanchez, Martín Estanislao Gorosito, Roberto Julio Eilbaum, Mario Luis Vicens, Nelson Damián Pozzoli, Luis María Blaquier, Ariel Marcelo Sigal, Alejandro Eduardo Fargosi, Juan Martin Monge Varela and Luis Cerolini in his double capacity as Compliance Officer and member of the Management Body).
Status: on 04/23/2019, UIF passed Resolution No, 41, whereby it resolved the lack of responsibility of Mr. Juan Martín Monge Varela, Luis Maria Blaquier and Mario Luis Vicens, and also imposed fines to the rest liable. On 05/15/2019 the imposed fines were paid and on 06/12/2019, the Bank, its Board of Directors and its statutory audits filed a direct appeal against such resolution, requesting a repeal of the penalty imposed. The file was submitted to Courtroom V of CNACAF. On 05/11/2021, such Courtroom issued a sentence dismissing the direct appeal filed by the Banco Macro SA and against that on 05/26/2021, this Bank filed a federal extraordinary appeal. On 12/09/2021 the CNACAF decided to allow the imposed Extraordinary appeal submitted the file to the CSJN on 02/03/2022. As of the date of issuance of these condensed consolidated interim Financial Statements, the CSJN had not issued a decision on the appeal filed.
File: No. 1208/2014 (UIF Resolution No. 13/2016) dated 1/15/2016.
Reason: alleged failure to comply with Anti-Money Laundering Law, as amended, and UIF Resolution No. 121/11.
Persons subject to the summary proceedings: Banco Macro SA, Jorge Horacio Brito, Delfín Jorge Ezequiel Carballo, Juan Pablo Brito Devoto, Jorge Pablo Brito, Luis Carlos Cerolini, Alejandro Macfarlane, Carlos Enrique Videla, Guillermo Eduardo Stanley, Constanza Brito, Marcos Brito and Emmanuel Antonio Álvarez Agis.
Status: on 05/17/2018 UIF passed resolution No, 13/2016, whereby it filed the summary proceedings related to observations over an overall inspection performed by the BCRA. On 06/15/2018, the liable parties filed their defenses. On 07/02/2018, the UIF sustained the lack of capacity to be sued by Delfín Jorge Ezequiel Carballo, discarding his responsibility in this summary proceeding. On 01/08/2021 UIF filed Resolution No. 80 which imposed a fine to the Bank and the other liable parties. On 01/26/2021 through the BCRA account, the fine was paid for an amount of 60 (not restated). On 03/02/2021, against such resolution, a direct appeal was filed to CNACAF which was dismissed. On 08/27/2021 a Federal extraordinary appeal against such decision was filed. On 10/07/2021, the CNACAF dismissed the extraordinary appeal filed, passing the complaint appeal to CSJN. As of the date of issuance of these condensed consolidated interim Financial Statements, the petition file has not been resolved by the CSJN.
File: No. 379/2015 (UIF Resolution No. 96/2019) dated 09/17/2019.
Reason: alleged failure to comply with Anti-Money Laundering Law, as amended, and UIF Resolution No. 121/11.
Persons subject to the summary proceedings: Banco Macro SA, Jorge Horacio Brito, Delfín Jorge Ezequiel Carballo, Jorge Pablo Brito, Marcos Brito, Juan Pablo Brito Devoto, Carlos Enrique Videla, Alejandro Macfarlane, Guillermo Eduardo Stanley, Emanuel Antonio Alvarez Agis, Constanza Brito and Luis Carlos Cerolini.
| - 53 - |
| --- |
NOTES TO THE CONDENSED CONSOLIDATED INTERIMFINANCIAL STATEMENTS
AS OF MARCH 31, 2023
(Translation of Financial Statements originally issued in Spanish – See Note 45)
(Figures stated in thousands of pesos in constant currency)
Status: On 10/02/2019, Banco Macro SA and the liable individuals were notified about the initiation of the proceedings. On 10/31/2019, the Bank and the individuals subject to summary proceedings filed their defense. On 01/07/2020, the party hearing the summary proceedings considered the defense filed and deferred the motion to dismiss for lack of capacity to be sued and statute of limitations upon issuing an opinion about the substance of the case. The administrative terms were suspended due to the social and preventive lockdown declared in the country due to the Covid-19 pandemic (DNU 297/2020), up to and including 11/29/2020. On 11/30/2020, terms were resumed (DNU 876/2020). On 03/02/2021, the passing of Mr. Jorge Horacio Brito was informed and the lapse of the action against him was requested. In addition, as part of the BCRA summary proceedings styled “File No, 100889/15 – Banco Macro SA, Summary Proceedings No. 1496”, Resolution No. 2020-132-E-GDEBCRA-SEFYC#BCRA was issued, whereby penalties were imposed on Banco Macro SA and the parties subject to those proceedings, currently pending before the CNACAF, Courtroom I (File No. 3784/2021). The transactions for which the parties are investigated have already been subject to penalties in the abovementioned BCRA summary proceedings; therefore, there cannot be simultaneous penalties based on the same subject matter. As a result, a request was made to prevent the application of all types of penalties to the parties subject to the summary proceedings. On 08/18/2021, it was resolved to set the case for the production of evidence. As of the date of issuance of these condensed consolidated interim Financial Statements, the case is on the final report stage.
Although the penalties described above do not involve material amounts, as of the date of issuance of these condensed consolidated interim Financial Statements, the total amount of monetary penalties received, pending payment due to any appeal lodged by the Bank, amounts to 500 and was recognized according to the BCRA Communiqués “A” 5689 and 5940, as amended and supplemented.
The Bank’s Management and its legal counsel consider no further significant accounting effects could arise from the final outcome of the above mentioned judicial proceedings.
| 38. | CORPORATE BONDS ISSUANCE |
|---|
The corporate bonds liabilities recorded by the Bank are as follows:
| Corporate Bonds | Original value | Residual face<br> value as of<br> 03/31/2023 | 03/31/2023 | 12/31/2022 | |||||
|---|---|---|---|---|---|---|---|---|---|
| Subordinated Resettable – Class A | USD | 400,000,000 | (1) | USD | 400,000,000 | 86,393,588 | 87,805,350 | ||
| Non-subordinated – Class E | USD | 17,000,000 | (2) | USD | 17,000,000 | 3,286,431 | 3,305,711 | ||
| Total | 89,680,019 | 91,111,061 |
On April 26, 2016, the general regular shareholders’ meeting approved the creation of a Global Program for the Issuance of Medium-Term Debt Securities, in accordance with the provisions of Law No. 23576, as amended and further applicable regulations, up to a maximum amount outstanding at any time during the term of the program of USD 1,000,000,000 (one billion US dollars), or an equal amount in other currencies or power units, under which it is possible to issue simple corporate bonds, not convertible into shares in one or more classes. Also, on April 28, 2017, the General and Special Shareholder’ Meeting resolved to extend the maximum amount of the abovementioned Global Program up to USD 1,500,000,000 (one thousand five hundred millions US dollars), and on April 27, 2018, the abovementioned Shareholders’ Meeting resolved to increase the maximum amount of the Global Program for the Issuance of Corporate Bonds, in face value, from USD 1,500,000,000 to USD 2,500,000,000 or an equal amount in other currencies, as determined by the Board of Directors in due time. Finally, on October 20, 2021 due to a Board of Director resolution, the Bank required from the CNV a five-year extension of the abovementioned program, which was approved by the Regulator through a note issued on December 15, 2021.
| (1) | On November 4, 2016, under the<br> abovementioned Global Program, the Bank issued Subordinated Resettable Corporate Bonds, class<br> A, at a fixed rate of 6.750% p.a. until reset date, fully amortizable upon maturity (November 4,<br> 2026) for a face value of USD 400,000,000 (four hundred million US dollars), under the terms<br> and conditions set forth in the pricing supplement dated October 21, 2016. Interest<br> is paid semiannually on May 4 and November 4 of every year and the reset date was<br> November 4, 2021. |
|---|
| - 54 - |
| --- |
NOTESTO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
ASOF MARCH 31, 2023
(Translation of Financial Statements originally issued in Spanish – See Note 45)
(Figures stated in thousands of pesos in constant currency)
As of the date of issuance of these condensed consolidated interim Financial Statements, the reset rate was established until the maturity date at 6.643% as a result of the benchmark reset rate plus 546.3 basis points, according to the abovementioned terms and conditions. As the Bank had not exercised the option to fully or partially redeem the issuance on the reset date and under the conditions established in the pricing supplement, it was established up to maturity.
On the other hand, it could be fully redeemed, not partially, and only for tax or regulatory purposes. The Bank used the funds derived from such issuance to grant loans in accordance with BCRA guidelines.
| (2) | On<br> May 2, 2022, under the abovementioned Global Program, the Bank issued Class E non-subordinated<br> simple corporate bonds not convertible into shares, for a face value of USD 17,000,000 at<br> a fixed rate of 1.45%, fully amortizable upon maturity (May 2, 2024), under the terms<br> and conditions set forth in the price supplement dated April 21, 2022. Interest is paid<br> quarterly on August 2, 2022, November 2, 2022, February 2, 2023, May 2,<br> 2023, August 2, 2023, November 2, 2023, February 2, 2024, and May 2,<br> 2024. |
|---|
At any time, according to the current regulations, particularly the BCRA’s foreign exchange regulations, the Bank may opt to redeem, Class E Corporate Bonds in full, not partially, at a price equal to (a) 102% of the outstanding principal if the Bank decides to make the redemption from the date of issuance and settlement through the term of 9 months therefrom, including the last business day; (b) 101% of outstanding principal if the Bank decides to make the redemption within the term starting 9 months after the date of issuance and settlement until the Class E maturity date, in all cases, along with the additional amount and accrued and unpaid interest, excluding the redemption date.
| 39. | OFF BALANCE SHEET TRANSACTIONS |
|---|
In addition to note 4, the Bank maintains different off balance sheet transactions, pursuant to the BCRA standards. The composition of the amounts of the main off balance sheet transactions as of March 31, 2023 and December 31, 2022, is as follows:
| Composition | 03/31/2023 | 12/31/2022 | ||
|---|---|---|---|---|
| Custody<br> of government and private securities and other assets held by third parties | 885,417,668 | 882,521,600 | ||
| Preferred<br> and other collaterals received from customers (1) | 219,887,175 | 228,250,998 | ||
| Outstanding<br> checks not yet paid | 26,511,086 | 24,277,255 | ||
| Checks<br> already deposited and pending clearance | 21,465,705 | 20,485,754 | ||
| (1) | Related<br> to collaterals used to secure loans transactions and other financing, under the applicable<br> rules in force on this matter. | |||
| --- | --- | |||
| 40. | TAX AND OTHER CLAIMS | |||
| --- | --- | |||
| 40.1 | Tax<br> claims | |||
| --- | --- |
The AFIP and tax authorities of the relevant jurisdictions have reviewed the tax returns filed by the Bank related to income tax, minimum presumed income tax and other taxes (mainly turnover tax), As a result, there are claims pending at court and/or administrative levels, either subject to discussion or appeal, The most significant claims are summarized below:
| a) | AFIP’s<br> challenges against the income tax returns filed by former Banco Bansud SA (for the fiscal<br> years from June 30, 1995, through June 30, 1999, and for the irregular six-month<br> period ended December 31, 1999) and by former Banco Macro SA (for the fiscal years ended<br> from December 31, 1998, through December 31, 2000). |
|---|
| - 55 - |
| --- |
NOTESTO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
ASOF MARCH 31, 2023
(Translation of Financial Statements originally issued in Spanish – See Note 45)
(Figures stated in thousands of pesos in constant currency)
The matter under discussion that has not been resolved as yet and on which the regulatory agency bases its position is the impossibility of deducting credits that have collateral security, an issue that has been addressed by the Federal Administrative Tax Court and CSJN in similar cases, which have issued resolutions that are favorable to the Bank’s position.
| b) | The<br> AFIP’s ex-officio undocumented expenses determinations for the periods February, April,<br> May 2015 and from July 2015 through January 2018, both included of date April 19,<br> 2021, On October 5, 2021, the Bank filed an appeal to the Federal Tax Court which is<br> in process in Courtroom B, Office 6, under file 2021-96970075. |
|---|---|
| c) | Ex-officio<br> turnover tax determinations in progress and/or adjustments, as a withholding agent and over<br> municipal fees, pending resolution by the tax authorities of certain jurisdictions. |
| --- | --- |
The Bank’s Management and its legal counsel consider no further significant accounting effects could arise from the final outcome of the abovementioned proceedings other than those disclosed in these condensed consolidated interim Financial Statements.
| 40.2 | Other<br> claims |
|---|
Before merging with and into the Bank, Banco Privado de Inversiones SA (BPI) had a pending class action styled “Adecua v, Banco Privado de Inversiones on ordinary proceedings”, File No. 19073/2007, pending with Commercial Court No. 3 in and for the CABA, Clerk’s Office No. 5, whereby it was required to reimburse to its clients the life insurance amounts overcharged to amounts payable as well as to reduce the amounts charged in this regard in the future; this legal proceeding was concluded upon the abovementioned merger because BPI complied in full with the terms of the court-approved agreement reached with Adecua before answering the complaint. However, in March 2013, when BPI had already been merged with and into the Bank, the trial court resolved to amend the terms of the agreement and ordered the reimbursement of amounts of money to a larger number of clients as compared to the number arising from the terms approved by the court in due time. Such resolution was appealed by the Bank as BPI’s surviving company. The appeal was dismissed by the Court of Appeals, which abrogated both the trial court decision and the court-approved agreement, thus ordering the Bank to answer the complaint. This gave rise to the filing of an extraordinary appeal against such decision as well as the subsequent filing of a complaint for the extraordinary appeal denied. On May 5, 2021, the Bank was notified of the dismissal of the complaint appeal, ordering the return of the main process to the CNACAF for continuing with the proceedings, who also submitted them to the trial court, which received them on 09/27/2021 and were requested as effectum vivendi in proceedings “Estado Nacional – Ministerio Producción de la Nación c/ Asociación de Defensa de los Consumidores y Usuarios de la R.A y otros s/Ordinario” (File No. 6757/2013), in which the Bank is not a party, by the commercial court, clerk’s office No. 11. As of the date of issuance of these condensed consolidated interim Financial Statements, resolution is still pending.
Moreover, the Bank is subject to a class actions for the same purpose, currently pending with Commercial Court No. 7 in and for the CABA, Clerk’s Office No. 13, styled Unión de Usuarios y Consumidores v, Nuevo Banco Bisel on ordinary proceedings, File No. 44704/2008.
There are also other class actions initiated by consumer protection associations in relation to the collection of certain commissions and/or financial charges or practices and certain withholdings made by the Bank to individuals as CABA stamp tax withholding agent.
The Bank’s Management and its legal counsel consider no further significant accounting effects could arise from the final outcome of the abovementioned proceedings other than those disclosed in these condensed consolidated interim Financial Statements.
| 41. | RESTRICTION ON DIVIDENDS DISTRIBUTION |
|---|---|
| a) | According<br> to BCRA regulations, 20% of Banco Macro SA income for the year, without including Other comprehensive<br> income, for the year plus/less prior-year adjustments and less accumulated losses as for<br> the prior year-end, if any, should be allocated to the legal retained earnings. |
| --- | --- |
| - 56 - |
| --- |
NOTESTO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
ASOF MARCH 31, 2023
(Translation of Financial Statements originally issued in Spanish – See Note 45)
(Figures stated in thousands of pesos in constant currency)
| b) | Through<br> Communiqué “A” 6464, as amended, the BCRA establishes the general procedure<br> to distribute earnings. According to that procedure, earnings may only be distributed if<br> certain circumstances are met, such as no records of financial assistance from the BCRA due<br> to illiquidity or shortages in payments of minimum capital or minimum cash requirement deficiencies<br> and not being subject to the provisions of sections 34 and 35 bis of the Financial Entities<br> Law (sections dealing with tax payment and restructuring agreements and reorganization of<br> the Bank), among other conditions listed in the abovementioned communiqué that must<br> be met. In addition, the earnings distribution approved by the Shareholders’ Meeting<br> of the Bank could only be formalized once the Superintendence of Financial and Foreign Exchange<br> Institutions approved it. |
|---|
Additionally, profits may only be distributed to the extent that the financial institution has positive results, after deducting, on a non-accounting basis, from retained earnings and the optional reserves for the future distribution of profits, (i) the amounts of the legal and other earnings reserves which are mandatory, (ii) all debit amounts of each one of the accounting items recognized in “Other Comprehensive Income”, (iii) income from of the revaluation of property, plant and equipment, intangible assets and investment property, (iv) the positive net difference between the amortized cost and the fair value of government debt instruments and/or monetary regulation instruments issued by the BCRA for those instruments recognized at amortized cost, (v) the adjustments identified by the Superintendence of Financial and Exchange Entities of the BCRA or by the independent external auditor and that have not been recognized in the accounting records and (vi) certain franchises granted by the BCRA. Moreover, no profit distributions shall be made out of the profit originated as a result of the first-time application of the IFRS, for which a normative reserve was created, and its balance as of March 31, 2023 was 26,053,296 (nominal value: 3,475,669).
The Bank must verify that, after completion of the earning distribution, a capital maintenance margin equal to 3.5% of risk-weighted assets is kept, apart from the minimum capital required by law, to be integrated by Tier 1(Con1) ordinary capital, net of deductible items (CDCOn1).
According to BCRA Communiqué “A” 7312, the earning distribution was suspended up to December 31, 2021. Through Communiqué “A” 7421, effective since January 1 and up to December 31, 2022, the BCRA allowed financial institutions, which had its authorization, to distribute their earnings up to 20% of the amount that would have been distributed in 12 equal, monthly and consecutive installments.
In addition, through Communiqué “A” 7659 the BCRA suspended the earnings distribution from January 1, 2023 up to December 31, 2023. Finally, through Communiqué “A” 7719, the BCRA established that from April 1, 2023 up to December 31, 2023, financial institutions, which have the BCRA’s authorization, will be allowed to distribute up to 40% of the amount of earnings that should have been distributed if the “Earnings distributions” rules had been applied, in 6 equal, monthly and consecutive installments.
| c) | Pursuant<br> to CNV General Resolution No. 622, the Shareholders’ Meeting in charge of analyzing<br> the annual Financial Statements will be required to decide on the application of the Bank’s<br> retained earnings, such as the actual distribution of dividends, the capitalization thereof<br> through the delivery of bonus shares, the creation of earnings reserves additional to the<br> legal earnings retained or a combination of any of these applications. |
|---|
In compliance with the previous comments, the General Regular Shareholders’ Meeting of Banco Macro SA held on April 29, 2022 considering that at the end of the fiscal year ended December 31, 2021, the Bank recorded a negative adjustment to unappropriated retained earnings as of December 31, 2021 for 8,920,325 (not restated) because the monetary effect accrued in relation to monetary items measured at fair value through other comprehensive income had been recorded in the previous period, resolved to distribute the unappropriated retained earnings for 18,202,171 (not restated) as follows (the abovementioned figures are stated in constant pesos as of December 31, 2021):
| a) | 3,640,434<br> to the legal reserve; |
|---|---|
| b) | 373,864<br> to the Personal Asset Tax on Business Companies (Impuesto sobre los Bienes Personales Sociedades<br> y Participaciones), and; |
| --- | --- |
| c) | 14,187,873<br> to pay a cash dividend and/or a dividend in kind, in the latter case valued at market value,<br> prior BCRA authorization. |
| --- | --- |
For further information, see note 31.
| - 57 - |
| --- |
NOTESTO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
ASOF MARCH 31, 2023
(Translation of Financial Statements originally issued in Spanish – See Note 45)
(Figures stated in thousands of pesos in constant currency)
As it is also mentioned in note 31, the Shareholders’ Meeting of Banco Macro SA held on April 25, 2023 decided to applied the unappropriated retained earnings for an amount of 43,175,125 (not restated) as follows (the abovementioned figures are stated in constant pesos as of December 31, 2022):
| a) | 8,607,704<br> to the legal reserve; |
|---|---|
| b) | 808,505<br> to the Personal Asset Tax on Business Companies (Impuesto sobre los Bienes Personales Sociedades<br> y Participaciones), and; |
| --- | --- |
| c) | 33,758,916<br> to a Facultative reserve for future distribution of earnings. |
| --- | --- |
In addition, the shareholders decided to partially applied the Facultative reserve for future distribution of dividends up to 75,040,918 to pay cash dividends and/or a dividend in kind prior to BCRA authorization. On May 12, 2023 the BCRA authorized this earning distribution that shall be paid in 6 equal, monthly and consecutive installments.
| 42. | CAPITAL MANAGEMENT, CORPORATE GOVERNANCE TRANSPARENCY POLICY AND RISK MANAGEMENT |
|---|
As a financial institution, Banco Macro SA is governed by Financial Entities Law No. 21526, as supplemented, and the regulations issued by the BCRA and, is exposed to intrinsic risks related to the financial industry. Moreover, the Bank adheres to the good banking practices laid out in BCRA Communiqué “A” 5201 (Financial Entities Corporate Governance Guidelines). Detailed explanations about the main aspects related to capital management, corporate governance transparency policy and risk management related to the Bank, are disclosed in note 45 to the consolidated financial statements as of December 31, 2022, already issued.
Additionally, the table below shows the minimum capital requirements measured on a consolidated basis, effective for the month of March 2023, together with the integration thereof (computable equity) as of the end of such month:
| Item | 03/31/2023 | |
|---|---|---|
| Minimum<br> capital requirements | 123,584,765 | |
| Computable<br> equity | 643,566,219 | |
| Capital<br> surplus | 519,981,454 | |
| 43. | CHANGES IN THE ARGENTINE MACROECONOMIC ENVIRONMENT AND FINANCIAL AND CAPITAL MARKETS | |
| --- | --- |
During the second half of 2019, in a political context of federal general elections which gave rise to a change in the federal authorities and generated a period with significative volatility for the market values of government and private financial instruments and a process of rescheduling maturities and swaps of certain government debt instruments started, In addition, material increases were observed in the country’s risk and in the exchange rate between the Argentine peso and the US dollar.
Subsequently, among other regulations, relevant modifications to the tax regulation system were introduced, including changes in the income tax, withholdings related to foreign exchange transactions and for the acquisition of foreign currency for hoarding purposes, and material restrictions to the exchange market access were also established.
At the same time, the government’s debt restructuring process continued under domestic and foreign legislation, including several voluntary swaps and the reached agreements regarding the country’s indebtedness with the International Monetary Fund and the Paris Club, among others. In particular, during March 2023, it was established that the jurisdictions, entities and funds related to the National Public Sector must proceed to the sale or auction of their holdings of certain national government securities denominated and payable in US dollars under domestic legislation. In turn, it was provided that the certain holdings of securities under foreign legislation held by such jurisdictions, entities and funds must be delivered in exchange to the National Treasury for the government securities issued. Finally, the issuance of government securities payable in Pesos of the National Treasury was authorized up to the amount necessary for the exchange.
| - 58 - |
| --- |
NOTESTO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
ASOF MARCH 31, 2023
(Translation of Financial Statements originally issued in Spanish – See Note 45)
(Figures stated in thousands of pesos in constant currency)
Particularly, regarding to the price of US dollar, since the end of 2019, the gap between the official price of the US dollar -used mainly for foreign trade- and the alternative values that arise through the stock market operation and also with respect to the unofficial value, began to widen around 105% as of the date of issuance of these condensed consolidated interim Financial Statements.
In addition, the local and international macroeconomic context generates certain degree of uncertainty regarding its future progress, considering the residual effects of the pandemic declared for Coronavirus (COVID – 19) that recently has significantly affected the domestic and international economy activity and the military conflict between Russia and Ukraine in the level of the global economic recovery.
Therefore, the Bank’s Management permanently monitors any changes in the abovementioned situations in international and local markets, to determine the possible actions to adopt and to identify the possible impact on its financial situation that may need to be reflected in the future Financial Statements.
| 44. | EVENTS AFTER REPORTING PERIOD |
|---|
No other significant events occurred between the end of the period and the issuance of these condensed consolidated interim Financial Statements that may materially affect the financial position or the profit and loss of the period, not disclosed in these condensed consolidated interim Financial Statements.
| 45. | ACCOUNTING PRINCIPLES – EXPLANATION ADDED FOR TRANSLATION INTO ENGLISH |
|---|
These condensed consolidated interim Financial Statements are presented in accordance with the accounting framework established by the BCRA, as mentioned in note 3. These accounting standards may not conform to accounting principles generally accepted in other countries.
| - 59 - | Carlos A. Giovanelli<br> Vice Chairperson |
| --- | --- |
EXHIBIT B
CONSOLIDATEDCLASSIFICATION OF LOANS AND OTHER FINANCING
BYSITUATION AND COLLATERAL RECEIVED
ASOF MARCH 31, 2023 AND DECEMBER 31, 2022
(Translation of the Financial Statements originally issued in Spanish – See Note 45)
(Figures stated in thousands of pesos in constant currency as of March 31, 2023)
| COMMERCIAL | 03/31/2023 | 12/31/2022 | ||
|---|---|---|---|---|
| In<br> normal situation | 134,767,686 | 134,976,186 | ||
| With<br> senior “A” collateral and counter-collateral | 14,459,047 | 17,530,660 | ||
| With<br> senior “B” collateral and counter-collateral | 20,039,846 | 22,353,221 | ||
| Without<br> senior collateral or counter-collateral | 100,268,793 | 95,092,305 | ||
| Troubled | 1,576,047 | 1,704,999 | ||
| With<br> senior “A” collateral and counter-collateral | 87,445 | |||
| With<br> senior “B” collateral and counter-collateral | 943,508 | 1,126,659 | ||
| Without<br> senior collateral or counter-collateral | 632,539 | 490,895 | ||
| With<br> high risk of insolvency | 796,584 | 981,502 | ||
| With<br> senior “A” collateral and counter-collateral | 106,001 | |||
| With<br> senior “B” collateral and counter-collateral | 701,156 | 723,413 | ||
| Without<br> senior collateral or counter-collateral | 95,428 | 152,088 | ||
| Subtotal<br> Commercial | 137,140,317 | 137,662,687 |
| - 60 - | Carlos A. Giovanelli<br> Vice Chairperson |
| --- | --- |
EXHIBIT B
(continued)
CONSOLIDATEDCLASSIFICATION OF LOANS AND OTHER FINANCING
BYSITUATION AND COLLATERAL RECEIVED
ASOF MARCH 31, 2023 AND DECEMBER 31, 2022
(Translation of the Financial Statements originally issued in Spanish – See Note 45)
(Figures stated in thousands of pesos in constant currency as of March 31, 2023)
| CONSUMER<br> AND MORTGAGE | 03/31/2023 | 12/31/2022 | ||
|---|---|---|---|---|
| Performing | 576,897,604 | 605,349,836 | ||
| With<br> senior “A” collateral and counter-collateral | 37,389,618 | 40,195,991 | ||
| With<br> senior “B” collateral and counter-collateral | 32,426,022 | 36,061,811 | ||
| Without<br> senior collateral or counter-collateral | 507,081,964 | 529,092,034 | ||
| Low<br> risk | 5,790,951 | 4,698,956 | ||
| With<br> senior “A” collateral and counter-collateral | 99,493 | 72,282 | ||
| With<br> senior “B” collateral and counter-collateral | 148,375 | 102,943 | ||
| Without<br> senior collateral or counter-collateral | 5,543,083 | 4,523,731 | ||
| Low<br> risk - in special treatment | 41,507 | 35,772 | ||
| Without<br> senior collateral or counter-collateral | 41,507 | 35,772 | ||
| Medium<br> risk | 3,741,935 | 3,216,924 | ||
| With<br> senior “A” collateral and counter-collateral | 10,693 | 22,384 | ||
| With<br> senior “B” collateral and counter-collateral | 96,713 | 83,024 | ||
| Without<br> senior collateral or counter-collateral | 3,634,529 | 3,111,516 | ||
| High<br> risk | 2,884,763 | 2,450,581 | ||
| With<br> senior “A” collateral and counter-collateral | 18,833 | 27,642 | ||
| With<br> senior “B” collateral and counter-collateral | 44,283 | 95,246 | ||
| Without<br> senior collateral or counter-collateral | 2,821,647 | 2,327,693 | ||
| Irrecoverable | 1,294,355 | 1,098,094 | ||
| With<br> senior “A” collateral and counter-collateral | 36,960 | 37,341 | ||
| With<br> senior “B” collateral and counter-collateral | 203,541 | 173,743 | ||
| Without<br> senior collateral or counter-collateral | 1,053,854 | 887,010 | ||
| Subtotal<br> consumer and mortgage | 590,651,115 | 616,850,163 | ||
| Total | 727,791,432 | 754,512,850 |
| - 61 - | Carlos A. Giovanelli<br> Vice Chairperson |
| --- | --- |
EXHIBIT B
(continued)
CONSOLIDATEDCLASSIFICATION OF LOANS AND OTHER FINANCING
BYSITUATION AND COLLATERAL RECEIVED
ASOF MARCH 31, 2023 AND DECEMBER 31, 2022
(Translation of the Financial Statements originally issued in Spanish – See Note 45)
(Figures stated in thousands of pesos in constant currency as of March 31, 2023)
This exhibit discloses the contractual figures as established by the BCRA. The conciliation with the condensed consolidated interim Financial Statements is listed below:
| 03/31/2023 | 12/31/2022 | |||||
|---|---|---|---|---|---|---|
| Loans<br> and other financing | 697,785,970 | 728,691,136 | ||||
| Added: | ||||||
| Allowances<br> for loans and other financing | 14,021,449 | 13,393,407 | ||||
| Adjustment<br> amortized cost and fair value | 1,901,910 | 2,053,755 | ||||
| Debt<br> securities of financial trust - Measured at amortized cost | 328,133 | 375,379 | ||||
| Corporate<br> bonds | 1,225,436 | 1,264,809 | ||||
| Subtract: | ||||||
| Interest<br> and other accrued items receivable from financial assets with impaired credit value | (260,676 | ) | (190,684 | ) | ||
| Guarantees<br> provided and contingent liabilities | 12,789,210 | 8,925,048 | ||||
| Total<br> computable items | 727,791,432 | 754,512,850 |
| - 62 - | Carlos A. Giovanelli<br> Vice Chairperson |
| --- | --- |
EXHIBIT C
CONSOLIDATEDCONCENTRATION OF LOANS AND FINANCING FACILITIES
ASOF MARCH 31, 2023 AND DECEMBER 31, 2022
(Translation of the Financial Statements originally issued in Spanish – See Note 45)
(Figures stated in thousands of pesos in constant currency as of March 31, 2023)
| 03/31/2023 | 12/31/2022 | ||||
|---|---|---|---|---|---|
| Number<br> of customers | Cut<br> off <br><br> balance | %<br> of total<br><br> portfolio | Cut<br> off<br><br> balance | %<br> of total<br><br> portfolio | |
| 10<br> largest customers | 33,533,450 | 4.61 | 26,497,685 | 3.51 | |
| 50<br> next largest customers | 46,375,616 | 6.37 | 48,740,632 | 6.46 | |
| 100<br> next largest customers | 36,367,958 | 5.00 | 39,871,862 | 5.28 | |
| Other<br> customers | 611,514,408 | 84.02 | 639,402,671 | 84.75 | |
| Total<br> (1) | 727,791,432 | 100.00 | 754,512,850 | 100.00 |
(1) See reconciliation in Exhibit B.
| - 63 - | Carlos A. Giovanelli<br> Vice Chairperson |
| --- | --- |
EXHIBIT D
CONSOLIDATEDBREAKDOWN OF LOANS AND OTHER FINANCING BY TERMS
ASOF MARCH 31, 2023
(Translation of the Financial Statements originally issued in Spanish – See Note 45)
(Figures stated in thousands of pesos in constant currency as of March 31, 2023)
| Remaining terms to maturity | ||||||||
|---|---|---|---|---|---|---|---|---|
| Item | Matured | Up to 1 month | Over 1 month and up to 3 months | Over 3 months and up to 6 months | Over 6 months and up to 12 months | Over 12 months and up to 24 months | Over 24 months | Total |
| Non-financial<br> government sector | 108 | 1,018,497 | 129,178 | 97,797 | 173,868 | 266,766 | 117,222 | 1,803,436 |
| Financial<br> sector | 659,446 | 563,679 | 151,495 | 324,159 | 587,285 | 295,160 | 2,581,224 | |
| Non-financial<br> private sector and foreign residents | 4,143,261 | 285,613,418 | 119,338,328 | 104,992,754 | 124,116,240 | 149,415,669 | 169,045,094 | 956,664,764 |
| Total | 4,143,369 | 287,291,361 | 120,031,185 | 105,242,046 | 124,614,267 | 150,269,720 | 169,457,476 | 961,049,424 |
CONSOLIDATEDBREAKDOWN OF LOANS AND OTHER FINANCING BY TERMS
ASOF DECEMBER 31, 2022
(Translation of the Financial Statements originally issued in Spanish – See Note 45)
(Figures stated in thousands of pesos in constant currency as of March 31, 2023)
| Remaining terms to maturity | ||||||||
|---|---|---|---|---|---|---|---|---|
| Item | Matured | Up<br> to 1 month | Over<br> 1<br><br> month and<br><br> up to 3<br><br> months | Over<br> 3<br><br> months and<br><br> up to 6<br><br> months | Over<br> 6<br><br> months and<br><br> up to 12<br><br> months | Over<br> 12 <br><br>months and <br><br>up to 24<br><br> months | Over<br> 24<br><br> months | Total |
| Non-financial<br> government sector | 131 | 1,648,831 | 699,673 | 126,652 | 227,625 | 356,324 | 210,481 | 3,269,717 |
| Financial<br> sector | 59,792 | 80,530 | 680,100 | 247,739 | 372,186 | 113,705 | 1,554,052 | |
| Non-financial<br> private sector and foreign residents | 4,235,856 | 319,707,969 | 88,577,945 | 107,656,796 | 136,155,720 | 145,802,403 | 184,541,566 | 986,678,255 |
| Total | 4,235,987 | 321,416,592 | 89,358,148 | 108,463,548 | 136,631,084 | 146,530,913 | 184,865,752 | 991,502,024 |
This exhibit discloses the contractual future cash flows that include interest and charges to be accrued until maturity of the contracts.
| - 64 - | Carlos A. Giovanelli<br> Vice Chairperson |
| --- | --- |
EXHIBIT F
CONSOLIDATED CHANGE OF PROPERTY, PLANT AND EQUIPMENT
AS OF MARCH 31, 2023
(Translation of the Financial Statements originally issued in Spanish – See Note 45)
(Figures stated in thousands of pesos in constant currency as of March 31, 2023)
| **** | Original | **** | **** | **** | **** | **** | **** | Depreciation of the period | Residual | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Item | value at beginning of fiscal year | Total life estimated in years | Increases | Decreases | Transfers | Difference for conversion | **** | Accumulated | Transfers | Decrease | Difference for conversion | **** | Of the period | At the end | value at the end of the period |
| Cost | |||||||||||||||
| Real property | 115,893,655 | 50 | 26,101 | 24,757 | 13,795,028 | 2,989 | 649,983 | 14,442,022 | 101,452,977 | ||||||
| Furniture<br> and facilities | 17,995,447 | 10 | 147,583 | 9,122,836 | 1 | 373,233 | 9,496,070 | 8,646,960 | |||||||
| Machinery<br> and equipment | 26,127,969 | 5 | 484,995 | 301 | 18,663,294 | (51 | ) | 842,029 | 19,505,272 | 7,107,993 | |||||
| Vehicles | 3,499,775 | 5 | 358,011 | 94,140 | (290 | ) | 2,777,228 | 78,658 | (9 | ) | 89,367 | 2,787,928 | 975,428 | ||
| Other | 1,008 | 3 | 3 | 399 | 2 | 83 | 484 | 527 | |||||||
| Work in<br> progress | 1,578,160 | 924,356 | 2,502,516 | ||||||||||||
| Right of<br> use real property | 9,887,015 | 5 | 269,363 | (1,061 | ) | 6,623,118 | (631 | ) | 417,155 | 7,039,642 | 3,115,675 | ||||
| Right<br> of use furnitore | 5 | 653,674 | 29,744 | 29,744 | 623,930 | ||||||||||
| Total<br> property, plant and equipment | 174,983,029 | 2,864,083 | 118,897 | (1,047 | ) | 50,981,903 | 81,647 | (688 | ) | 2,401,594 | 53,301,162 | 124,426,006 |
CONSOLIDATED CHANGE OF PROPERTY, PLANT AND EQUIPMENT
AS OF DECEMBER 31, 2022
(Translation of the Financial Statements originally issued in Spanish – See Note 45)
(Figures stated in thousands of pesos in constant currency as of March 31, 2023)
| **** | Original | **** | **** | **** | **** | **** | **** | **** | Depreciation for the fiscal year | Residual | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Item | valueatbeginning of fiscal year | Total life estimated in years | Increases | Decreases | Transfers | **** | Difference for conversion | **** | Accumulated | Transfers | **** | Decrease | Difference for conversion | **** | For the fiscal year | At the end | value at the end of the fiscal year |
| Cost | |||||||||||||||||
| Real property | 113,651,848 | 50 | 724,939 | 148,719 | 1,665,587 | 11,424,070 | (95,593 | ) | 25,556 | 2,492,107 | 13,795,028 | 102,098,627 | |||||
| Furniture<br> and facilities | 15,678,113 | 10 | 503,518 | 2,013 | 1,816,049 | (220 | ) | 7,723,905 | 5 | 669 | (177 | ) | 1,399,772 | 9,122,836 | 8,872,611 | ||
| Machinery<br> and equipment | 22,299,100 | 5 | 2,555,107 | 6,806 | 1,280,788 | (220 | ) | 15,395,067 | (1,869 | ) | 6,523 | (556 | ) | 3,277,175 | 18,663,294 | 7,464,675 | |
| Vehicles | 3,168,690 | 5 | 547,732 | 214,859 | (11,209 | ) | 9,421 | 2,598,256 | (851 | ) | 140,410 | 17 | 320,216 | 2,777,228 | 722,547 | ||
| Other | 2,117 | 3 | (1,109 | ) | 1,008 | (1,288 | ) | 679 | 399 | 609 | |||||||
| Work in<br> progress | 3,761,309 | 3,298,619 | (5,481,768 | ) | 1,578,160 | ||||||||||||
| Right<br> of use real property | 8,952,159 | 5 | 1,055,723 | 117,099 | (3,768 | ) | 4,997,070 | 72,665 | (309 | ) | 1,699,022 | 6,623,118 | 3,263,897 | ||||
| Total<br> property, plant and equipment | 167,513,336 | 8,685,638 | 489,496 | (730,553 | ) | 4,104 | 42,139,376 | (98,308 | ) | 245,823 | (2,313 | ) | 9,188,971 | 50,981,903 | 124,001,126 |
| - 65 - | Carlos A. Giovanelli<br> Vice Chairperson |
| --- | --- |
EXHIBIT F
(Continued)
CONSOLIDATED CHANGE IN INVESTMENT PROPERTY
AS OF MARCH 31, 2023
(Translation of the Financial Statements originally issued in Spanish – See Note 45)
(Figures stated in thousands of pesos in constant currency as of March 31, 2023)
| **** | Original | **** | **** | **** | **** | **** | Depreciation of the period | Residual | ||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Item | Value at beginning of fiscal year | Useful life estimated in years | Increases | Decreases | Transfers | Difference for conversion | Accumulated | Transfers | Decrease | Of the period | At the end | value at the end of the period |
| Cost | ||||||||||||
| Leased properties | 482,814 | 50 | 72,992 | 1,818 | 74,810 | 408,004 | ||||||
| Other investment<br> properties | 10,508,195 | 50 | 509,884 | 22,215 | 2 | 339,541 | 11,259 | 62,432 | 390,714 | 10,605,152 | ||
| Total<br> investment property | 10,991,009 | 509,884 | 22,215 | 2 | 412,533 | 11,259 | 64,250 | 465,524 | 11,013,156 |
CONSOLIDATED CHANGE IN INVESTMENT PROPERTY
AS OF DECEMBER 31, 2022
(Translation of the Financial Statements originally issued in Spanish – See Note 45)
(Figures stated in thousands of pesos in constant currency as of March 31, 2023)
| **** | Original | **** | **** | **** | **** | **** | **** | **** | Depreciation for the fiscal year | Residual | |||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Item | Value at beginning of fiscal year | Useful life estimated in years | Increases | Decreases | Transfers (1) | **** | Difference for conversion | **** | Accumulated | Transfers (1) | **** | Decrease | For the fiscal year | At the end | value at the end of the fiscal year |
| Cost | |||||||||||||||
| Leased properties | 547,782 | 50 | 1,408 | (66,376 | ) | 19,789 | 46,791 | 6,412 | 72,992 | 409,822 | |||||
| Other investment properties | 1,668,753 | 50 | 12,144,601 | 32,042 | (3,273,112 | ) | (5 | ) | 134,434 | (6,939 | ) | 2,796 | 214,842 | 339,541 | 10,168,654 |
| Total investment property | 2,216,535 | 12,146,009 | 32,042 | (3,339,488 | ) | (5 | ) | 154,223 | 39,852 | 2,796 | 221,254 | 412,533 | 10,578,476 | ||
| (1) | During<br> the fiscal year 2022, under this item transfers were made to Non-current assets held for<br> sale. | ||||||||||||||
| --- | --- |
| - 66 - | Carlos A. Giovanelli<br> Vice Chairperson |
| --- | --- |
EXHIBIT G
CONSOLIDATED CHANGE IN INTANGIBLE ASSETS
AS OF MARCH 31, 2023
(Translation of the Financial Statements originally issued in Spanish – See Note 45)
(Figures stated in thousands of pesos in constant currency as of March 31, 2023)
| Original | Depreciation of the period | Residual | ||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Item | Value at<br> beginning of<br> fiscal year | Useful life<br> estimated<br> in years | Increases | Decreases | Transfers | Accumulated | Transfers | Decrease | Of the<br> period | At the end | value at the<br> end of the<br> period | |||||||||
| Cost | ||||||||||||||||||||
| Licenses | 13,587,482 | 5 | 638,187 | 9,514,924 | 587,969 | 10,102,893 | 4,122,776 | |||||||||||||
| Other intangible assets | 47,313,235 | 5 | 2,368,196 | 49 | 30,155,960 | 49 | 1,839,922 | 31,995,833 | 17,685,549 | |||||||||||
| Total intangible assets | 60,900,717 | 3,006,383 | 49 | 39,670,884 | 49 | 2,427,891 | 42,098,726 | 21,808,325 |
CONSOLIDATED CHANGE IN INTANGIBLE ASSETS
AS OF DECEMBER 31, 2022
(Translation of the Financial Statements originally issued in Spanish – See Note 45)
(Figures stated in thousands of pesos in constant currency as of March 31, 2023)
| **** | Original | **** | **** | **** | **** | **** | Depreciation for the fiscal year | Residual | ||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Item | Value at<br> beginning of<br> fiscal year | Useful life<br> estimated<br> in years | Increases | Decreases | Transfers | Accumulated | Transfers | Decrease | For the<br> fiscal year | At the end | value at the<br> end of the<br> fiscal year | |||||||||||||
| Cost | ||||||||||||||||||||||||
| Licenses | 11,881,161 | 5 | 1,596,769 | 109,552 | 7,267,933 | 4,110 | 0 | 2,242,881 | 9,514,924 | 4,072,558 | ||||||||||||||
| Other intangible assets | 38,565,308 | 5 | 8,885,867 | 40,851 | (97,089 | ) | 23,249,772 | (1,620 | ) | 1,599 | 6,909,407 | 30,155,960 | 17,157,275 | |||||||||||
| Total intangible assets | 50,446,469 | 10,482,636 | 40,851 | 12,463 | 30,517,705 | 2,490 | 1,599 | 9,152,288 | 39,670,884 | 21,229,833 |
| - 67 - | Carlos A. Giovanelli<br> Vice Chairperson |
| --- | --- |
EXHIBIT H
CONSOLIDATED DEPOSIT CONCENTRATION
AS OF MARCH 31, 2023 AND DECEMBER 31, 2022
(Translation of the Financial Statements originally issued in Spanish – See Note 45)
(Figures stated in thousands of pesos in constant currency as of March 31, 2023)
| 03/31/2023 | 12/31/2022 | |||||||
|---|---|---|---|---|---|---|---|---|
| Number of customers | Outstanding <br> balance | % of total<br> portfolio | Outstanding <br> balance | % of total<br> portfolio | ||||
| 10 largest customers | 143,085,667 | 9.77 | 187,038,290 | 11.86 | ||||
| 50 next largest customers | 165,208,059 | 11.28 | 160,587,317 | 10.18 | ||||
| 100 next largest customers | 64,766,012 | 4.42 | 74,940,249 | 4.75 | ||||
| Other customers | 1,091,278,529 | 74.53 | 1,154,349,088 | 73.21 | ||||
| Total | 1,464,338,267 | 100.00 | 1,576,914,944 | 100.00 |
| - 68 - | Carlos A. Giovanelli<br> Vice Chairperson |
| --- | --- |
EXHIBIT I
CONSOLIDATED BREAKDOWN OF FINANCIAL LIABILITIES
FOR RESIDUAL TERMS
AS OF MARCH 31, 2023
(Translation of the Financial Statements originally issued in Spanish – See Note 45)
(Figures stated in thousands of pesos in constant currency as of March 31, 2023)
| **** | Remaining terms to maturity | **** | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Item | Up<br> to 1 month | Over<br> 1<br><br> month and <br><br> up to 3 <br><br> months | Over<br> 3<br><br> months <br><br> and up to 6<br><br> months | Over<br> 6<br><br> months<br><br> and up to <br><br> 12 months | Over<br> 12<br><br> months <br><br> and up to<br><br> 24 months | Over<br> 24<br><br> months | Total | |||||||
| Deposits | 1,289,880,439 | 193,877,023 | 8,694,582 | 2,546,840 | 73,772 | 3,656 | 1,495,076,312 | |||||||
| From the<br> non-financial government sector | 104,232,312 | 7,365,016 | 1,228,071 | 5,922 | 1,697 | 112,833,018 | ||||||||
| From the<br> financial sector | 1,910,914 | 1,910,914 | ||||||||||||
| From the<br> non-financial private sector and foreign residents | 1,183,737,213 | 186,512,007 | 7,466,511 | 2,540,918 | 73,772 | 1,959 | 1,380,332,380 | |||||||
| Liabilities at fair value<br> through profit or loss | 2,476,842 | 2,476,842 | ||||||||||||
| Derivative instruments | 89,905 | 10,493 | 100,398 | |||||||||||
| Repo transactions | 4,506,489 | 4,506,489 | ||||||||||||
| Other financial<br> institutions | 4,506,489 | 4,506,489 | ||||||||||||
| Other Financial Liabilities | 147,945,283 | 475,510 | 467,536 | 853,193 | 1,381,477 | 3,045,436 | 154,168,435 | |||||||
| Financing received from the<br> Central Bank of Argentina and other financial institutions | 1,279,204 | 1,366,228 | 1,596,443 | 342,195 | 4,584,070 | |||||||||
| Issued corporate bonds | 11,656 | 12,050 | 24,100 | 3,308,753 | 3,356,559 | |||||||||
| Subordinated corporate bonds | 2,771,222 | 2,771,222 | 5,542,442 | 94,517,710 | 105,602,596 | |||||||||
| Total | 1,446,178,162 | 198,501,639 | 10,781,104 | 6,537,550 | 10,306,444 | 97,566,802 | 1,769,871,701 |
This exhibit discloses contractual future cash flows that include interests and charges to be accrued until maturity of the contracts.
| - 69 - | Carlos A. Giovanelli<br> Vice Chairperson |
| --- | --- |
EXHIBIT I
CONSOLIDATED BREAKDOWN OF FINANCIAL LIABILITIES
FOR RESIDUAL TERMS
AS OF DECEMBER 31, 2022
(Translation of the Financial Statements originally issued in Spanish – See Note 45)
(Figures stated in thousands of pesos in constant currency as of March 31, 2023)
| **** | Remaining terms to maturity | **** | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Item | Up to 1 month | Over 1 month and up to 3 months | Over 3 months and up to 6 months | Over 6 months and up to 12 months | Over 12 months and up to 24 months | Over 24 months | Total | |||||||
| Deposits | 1,444,759,137 | 138,213,256 | 24,046,390 | 2,315,537 | 14,967 | 44,846 | 1,609,394,133 | |||||||
| From the<br> non-financial government sector | 131,216,146 | 4,120,592 | 1,241,301 | 5,474 | 136,583,513 | |||||||||
| From the<br> financial sector | 2,012,780 | 2,012,780 | ||||||||||||
| From the<br> non-financial private sector and foreign residents | 1,311,530,211 | 134,092,664 | 22,805,089 | 2,310,063 | 14,967 | 44,846 | 1,470,797,840 | |||||||
| Liabilities at fair value<br> through profit or loss | 640,345 | 640,345 | ||||||||||||
| Derivative instruments | 2,087 | 799 | 2,886 | |||||||||||
| Other Financial Liabilities | 159,193,079 | 518,923 | 471,192 | 896,566 | 1,491,979 | 3,446,239 | 166,017,978 | |||||||
| Financing received from<br> the Central Bank of Argentina and other financial institutions | 355,923 | 629,914 | 1,968,281 | 54,742 | 3,008,860 | |||||||||
| Issued corporate bonds | 12,142 | 11,746 | 24,283 | 3,346,251 | 3,394,422 | |||||||||
| Subordinated corporate bonds | 2,860,143 | 2,860,143 | 5,720,285 | 97,550,528 | 108,991,099 | |||||||||
| Total | 1,604,950,571 | 139,375,034 | 29,357,752 | 6,151,271 | 10,573,482 | 101,041,613 | 1,891,449,723 |
This exhibit discloses contractual future cash flows that include interests and charges to be accrued until maturity of the contracts.
| - 70 - | Carlos A. Giovanelli<br> Vice Chairperson |
| --- | --- |
EXHIBIT J
CONSOLIDATED CHANGES IN PROVISIONS
AS OF MARCH 31, 2023
(Translation of the Financial Statements originally issued in Spanish – See Note 45)
(Figures stated in thousands of pesos in constant currency as of March 31, 2023)
| **** | Amounts at beginning of | **** | Decreases | Monetary effects generated by | **** | **** | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Item | fiscal year | Increases | Reversals | Charge off | provisions | **** | 03/31/2023 | |||||
| Provisions for eventual commitments | 848,191 | 130,005 | (156,896 | ) | 821,300 | |||||||
| For administrative, disciplinary and criminal penalties | 609 | (109 | ) | 500 | ||||||||
| Other | 2,453,894 | 531,981 | 184,068 | (457,661 | ) | 2,344,146 | ||||||
| Total provisions | 3,302,694 | 661,986 | 184,068 | (614,666 | ) | 3,165,946 |
CONSOLIDATED CHANGES IN PROVISIONS
AS OF DECEMBER 31, 2022
(Translation of the Financial Statements originally issued in Spanish – See Note 45)
(Figures stated in thousands of pesos in constant currency as of March 31, 2023)
| **** | Amounts at beginning of | **** | Decreases | Monetary effects generated by | **** | **** | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Item | fiscal year | Increases | Reversals | Charge off | provisions | 12/31/2022 | ||||||
| Provisions for eventual commitments | 808,846 | 584,330 | (544,985 | ) | 848,191 | |||||||
| For administrative, disciplinary and criminal penalties | 1,183 | (574 | ) | 609 | ||||||||
| Other | 3,082,576 | 3,198,936 | 2,173,221 | (1,654,397 | ) | 2,453,894 | ||||||
| Total provisions | 3,892,605 | 3,783,266 | 2,173,221 | (2,199,956 | ) | 3,302,694 |
| - 71 - | Carlos A. Giovanelli<br> Vice Chairperson |
| --- | --- |
EXHIBIT L
| CONSOLIDATED FOREIGN CURRENCY AMOUNTS | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| AS OF MARCH 31, 2023 AND DECEMBER 31, 2022 | ||||||||||||
| (Translation<br> of the Financial Statements originally issued in Spanish – See Note 45) | ||||||||||||
| (Figures<br> stated in thousands of pesos in constant currency as of March 31, 2023) | ||||||||||||
| Item | 03/31/2023 | 12/31/2022 | ||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Total parent company and local | Total per currency | Total | ||||||||||
| branches | US dollar | Euro | Real | Other | ||||||||
| Assets | ||||||||||||
| Cash and deposits<br> in banks | 241,283,112 | 239,310,116 | 1,358,616 | 48,734 | 565,646 | 256,409,440 | ||||||
| Debt securities at fair value<br> through profit or loss (1) | 278,146,212 | 278,146,212 | 216,605,816 | |||||||||
| Other financial assets | 21,092,214 | 21,091,617 | 597 | 19,080,693 | ||||||||
| Loans and other financing | 52,030,005 | 52,030,005 | 43,750,843 | |||||||||
| From the<br> non-financial private sector and foreign residents | 52,030,005 | 52,030,005 | 43,750,843 | |||||||||
| Other debt securities | 39,937,827 | 39,937,827 | 65,534,438 | |||||||||
| Financial assets delivered as<br> guarantee | 5,869,154 | 5,855,551 | 13,603 | 5,962,315 | ||||||||
| Equity Instruments at fair value<br> through profit or loss | 196,243 | 196,243 | 194,041 | |||||||||
| Total assets | 638,554,767 | 636,567,571 | 1,372,816 | 48,734 | 565,646 | 607,537,586 | ||||||
| Liabilities | ||||||||||||
| Deposits | 204,698,469 | 204,244,093 | 454,376 | 208,187,885 | ||||||||
| Non-financial<br> government sector | 8,063,278 | 8,063,278 | 7,502,481 | |||||||||
| Financial<br> sector | 1,651,080 | 1,651,080 | 1,703,400 | |||||||||
| Non-financial<br> private sector and foreign residents | 194,984,111 | 194,529,735 | 454,376 | 198,982,004 | ||||||||
| Liabilities at fair value through<br> profit or loss | 2,476,842 | 2,476,842 | 640,345 | |||||||||
| Other financial liabilities | 20,880,261 | 20,582,399 | 257,941 | 39,921 | 19,597,252 | |||||||
| Financing from Central Bank of<br> Argentina and other financial institutions | 4,456,171 | 4,456,171 | 2,918,700 | |||||||||
| Issued corporate bonds | 3,286,431 | 3,286,431 | 3,305,711 | |||||||||
| Subordinated corporate bonds | 86,393,588 | 86,393,588 | 87,805,350 | |||||||||
| Other non-financial liabilities | 131,926 | 131,926 | 65,813 | |||||||||
| Total liabilities | 322,323,688 | 321,571,450 | 712,317 | 39,921 | 322,521,056 | |||||||
| (1) | Mainly includes, Federal government<br> bonds in dual currency at discount to 189,676,015 and Federal government treasury bonds linked<br> to dolar linked dollar is 71,614,348. | |||||||||||
| --- | --- |
| - 72 - | Carlos A. Giovanelli<br> Vice Chairperson |
| --- | --- | | | EXHIBIT Q | | --- | --- | | CONSOLIDATED BREAKDOWN OF STATEMENT OF INCOME | | | FOR THE THREE MONTH PERIODS ENDED MARCH 31, 2023 AND 2022 | | | (Translation<br> of the Financial Statements originally issued in Spanish – See Note 45) | | | (Figures<br> stated in thousands of pesos in constant currency as of March 31, 2023) | | | | Net financial Income / (Loss) | | | | | | | --- | --- | --- | --- | --- | --- | --- | | | Mandatory measurement | | | | | | | Items | Quarter ended 03/31/2023 | | | Quarter ended 03/31/2022 | | | | For measurement of financial assets at fair value through profit or loss | | | | | | | | Gain from government securities | | 12,908,127 | | | 2,865,225 | | | (Loss) / Gain from private securities | | (3,054,799 | ) | | 307,972 | | | Gain from derivative financial instruments | | | | | | | | Forward transactions | | 194,481 | | | | | | Gain / (Loss) from other financial assets | | 16,958 | | | (5,155 | ) | | Gain from equity instruments at fair value through profit<br> or loss (1) | | 50,892 | | | 7,805,891 | | | (Loss) / Gain from sales or decreases of financial assets<br> at fair value | | (503,834 | ) | | 2,055,270 | | | For measurement of financial liabilities at fair value through<br> profit or loss | | | | | | | | Loss from derivative financial instruments | | | | | | | | Options | | (416,939 | ) | | | | | Total | | 9,194,886 | | | 13,029,203 | |
(1) Net amount of reclassifications to profit of instruments classified at fair value through other comprehensive income that were derecognized or charged during the period.
| - 73 - | Carlos A. Giovanelli<br> Vice Chairperson |
| --- | --- | | EXHIBIT Q | | --- | | (Continued) | | CONSOLIDATED BREAKDOWN OF STATEMENT OF INCOME | | --- | | FOR THE THREE MONTH PERIODS ENDED MARCH 31, 2023 AND 2022 | | (Translation<br> of the Financial Statements originally issued in Spanish – See Note 45) | | (Figures<br> stated in thousands of pesos in constant currency as of March 31, 2023) | | | Net financial<br> Income / (Loss) | | | | | | | --- | --- | --- | --- | --- | --- | --- | | Interest and adjustment for the application<br> of the effective interest rate <br><br>of financial assets and financial liabilities measured at amortized cost | Quarter<br> ended<br><br> 03/31/2023 | | | Quarter<br> ended<br><br> 03/31/2022 | | | | Interest income | | | | | | | | for cash and bank deposits | | 550,377 | | | 5,790 | | | for government securities | | 111,257,098 | | | 3,326,557 | | | for private securities | | 98,337 | | | 51,329 | | | for loans and other financing | | | | | | | | Non-financial public sector | | 387,107 | | | 564,420 | | | Financial sector | | 106,453 | | | 188,238 | | | Non-financial private sector | | | | | | | | Overdrafts | | 9,338,654 | | | 5,176,969 | | | Documents | | 9,081,032 | | | 6,232,692 | | | Mortgage loans | | 11,004,103 | | | 9,549,877 | | | Pledge loans | | 801,834 | | | 1,058,814 | | | Personal loans | | 25,947,766 | | | 28,199,817 | | | Credit cards | | 18,187,106 | | | 10,380,261 | | | Financial leases | | 115,229 | | | 93,380 | | | Other | | 11,167,322 | | | 7,677,021 | | | for repo transactions | | | | | | | | Central Bank of Argentina | | 6,712,679 | | | 811,784 | | | Other financial institutions | | 16,090 | | | 71,168 | | | Total | | 204,771,187 | | | 73,388,117 | | | Interest expenses | | | | | | | | for Deposits | | | | | | | | Non-financial Private sector | | | | | | | | Checking accounts | | (5,910,328 | ) | | (879,841 | ) | | Saving accounts | | (1,281,113 | ) | | (802,998 | ) | | Time deposits and investments accounts | | (120,579,318 | ) | | (50,974,023 | ) | | for Financing received from Central Bank of Argentina and<br> other financial institutions | | (212,379 | ) | | (90,964 | ) | | for repo transactions | | | | | | | | Other financial Institutions | | (1,240,270 | ) | | (443,582 | ) | | for other financial liabilities | | (372,892 | ) | | (91,220 | ) | | for issued corporate bonds | | (16,074 | ) | | (228,346 | ) | | for other subordinated corporate bonds | | (1,343,504 | ) | | (1,483,684 | ) | | Total | | (130,955,878 | ) | | (54,994,658 | ) |
| - 74 - | Carlos A. Giovanelli<br> Vice Chairperson |
| --- | --- | | | EXHIBIT Q | | --- | --- | | | (Continued) | | CONSOLIDATED BREAKDOWN OF STATEMENT OF INCOME | | | FOR THE THREE MONTH PERIODS ENDED MARCH 31, 2023 AND 2022 | | | (Translation<br> of the Financial Statements originally issued in Spanish – See Note 45) | | | (Figures<br> stated in thousands of pesos in constant currency as of March 31, 2023) | | | Interest and adjustment for the<br><br> application<br> of the effective interest rate<br><br> of financial assets measured at fair | Income<br> of the<br><br> period | | Other<br><br> comprehensive<br><br> income | | | Income<br> of the<br><br> period | | Other<br><br> comprehensive<br><br> income | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | value through other comprehensive<br><br> income | Quarter<br> ended<br><br> 03/31/2023 | | Quarter<br> ended<br><br> 03/31/2023 | | | Quarter<br> ended<br><br> 03/31/2022 | | Quarter<br> ended<br><br> 03/31/2022 | | | | for debt government securities | | 23,846,746 | | (1,880,529 | ) | | 67,264,953 | | (3,312,595 | ) | | Total | | 23,846,746 | | (1,880,529 | ) | | 67,264,953 | | (3,312,595 | ) | | | Income<br> of the period | | | | | | | --- | --- | --- | --- | --- | --- | --- | | Items | Quarter<br> ended<br><br> 03/31/2023 | | | Quarter<br> ended<br><br> 03/31/2022 | | | | Commissions income | | | | | | | | Commissions related to<br> obligations | | 13,692,288 | | | 12,866,683 | | | Commissions related to credits | | 98,386 | | | 94,974 | | | Commissions related to loans commitments<br> and financial guarantees | | 1,800 | | | 1,149 | | | Commissions related to securities value | | 575,383 | | | 437,825 | | | Commissions for credit cards | | 8,081,498 | | | 7,781,140 | | | Commissions for insurances | | 1,309,301 | | | 1,334,386 | | | Commissions related to trading and<br> foreign exchange transactions | | 533,755 | | | 513,372 | | | Total | | 24,292,411 | | | 23,029,529 | | | Commissions expenses | | | | | | | | Commissions related to trading with<br> debt securties | | (30,495 | ) | | (3,558 | ) | | Commissions related to trading and<br> foreign exchange transactions | | (103,281 | ) | | (73,407 | ) | | Other | | | | | | | | Commissions paid ATM exchange | | (1,429,986 | ) | | (1,473,476 | ) | | Checkbooks commissions and clearing<br> houses | | (475,240 | ) | | (383,542 | ) | | Credit cards and foreign trade commissions | | (221,492 | ) | | (225,851 | ) | | Total | | (2,260,494 | ) | | (2,159,834 | ) |
| - 75 - | Carlos A. Giovanelli<br> Vice Chairperson |
| --- | --- | | | EXHIBIT R | | --- | --- | | VALUE ADJUSTMENT FOR CREDIT LOSSES - CONSOLIDATED ALLOWANCES FOR UNCOLLECTIBILITY RISK AS OF MARCH 31, 2023 | | | (Translation<br> of the Financial Statements originally issued in Spanish – See Note 45) | | | (Figures<br> stated in thousands of pesos in constant currency as of March 31, 2023) | | | | | | Movements between stages of the period | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | ECL<br> of remanent life of financial asset | | | | | | | | | | | | Item | Balances<br> at <br> beginning of<br><br> the<br> fiscal year | | ECL<br> of the next <br><br> 12 months | | | Financial<br><br> instruments with a<br><br> significant<br><br> increase in credit <br><br> risk | | | Financial<br><br> instruments with<br><br> impairment | | | Monetary<br> effect<br><br> generated by<br><br> allowances | | | 03/31/2023 | | | Other financial assets | | 110,826 | | 21,132 | | | | | | | | | (21,196 | ) | | 110,762 | | Loans and other financing | | 13,393,407 | | 660,630 | | | 810,009 | | | 1,764,455 | | | (2,607,052 | ) | | 14,021,449 | | Other financial<br> institutions | | 9,910 | | 4,537 | | | | | | | | | (2,072 | ) | | 12,375 | | To the<br> non-financial private sector and foreign residents | | | | | | | | | | | | | | | | | | Overdrafts | | 641,369 | | 96,248 | | | (11,426 | ) | | 161,530 | | | (130,949 | ) | | 756,772 | | Documents | | 689,217 | | 91,157 | | | 9,966 | | | 19,528 | | | (131,098 | ) | | 678,770 | | Mortgage loans | | 1,453,382 | | 119,264 | | | 19,862 | | | 111,428 | | | (276,193 | ) | | 1,427,743 | | Pledge loans | | 230,852 | | 102,018 | | | 6,015 | | | (8,990 | ) | | (47,826 | ) | | 282,069 | | Personal loans | | 5,049,052 | | (139,465 | ) | | 189,946 | | | 888,499 | | | (964,077 | ) | | 5,023,955 | | Credit cards | | 3,366,855 | | 34,898 | | | 565,854 | | | 471,876 | | | (672,682 | ) | | 3,766,801 | | Financial leases | | 26,338 | | (3,551 | ) | | 821 | | | 29,418 | | | (6,484 | ) | | 46,542 | | Other | | 1,926,432 | | 355,524 | | | 28,971 | | | 91,166 | | | (375,671 | ) | | 2,026,422 | | Eventual commitments | | 848,191 | | 85,764 | | | 47,678 | | | | | | (160,333 | ) | | 821,300 | | Other debt<br> securities | | 969 | | 1,087 | | | | | | | | | (247 | ) | | 1,809 | | Total of allowances | | 14,353,393 | | 768,613 | | | 857,687 | | | 1,764,455 | | | (2,788,828 | ) | | 14,955,320 | | VALUE ADJUSTMENT FOR CREDIT LOSSES - CONSOLIDATED ALLOWANCES FOR UNCOLLECTIBILITY RISK AS OF DECEMBER 31, 2022 | | --- | | (Translation<br> of the Financial Statements originally issued in Spanish – See Note 45) | | (Figures<br> stated in thousands of pesos in constant currency as of March 31, 2023) | | | | | Movements<br> between stages for the fiscal year | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | ECL<br> of remanent life of financial asset | | | | | | | | | | | | Item | Balances at <br><br> beginning of<br><br> the<br> fiscal year | | ECL<br> of the next <br><br> 12 months | | | Financial<br><br> instruments with a <br><br> significant<br><br> increase in credit <br><br> risk | | | Financial<br><br> instruments with<br><br> impairment | | | Monetary<br> effect<br><br> generated by <br><br> allowances | | | 12/31/2022 | | | Other<br> financial assets | | 62,714 | | 101,522 | | | | | | | | | (53,410 | ) | | 110,826 | | Loans and other<br> financing | | 22,838,499 | | 2,881,254 | | | (2,991,148 | ) | | 1,625,106 | | | (10,960,304 | ) | | 13,393,407 | | Other financial<br> institutions | | 8,656 | | 5,301 | | | | | | | | | (4,047 | ) | | 9,910 | | To the<br> non-financial private sector and foreign residents | | | | | | | | | | | | | | | | | | Overdrafts | | 1,679,670 | | 319,825 | | | 5,448 | | | (676,256 | ) | | (687,318 | ) | | 641,369 | | Documents | | 2,280,189 | | (37,770 | ) | | (556,935 | ) | | 23,947 | | | (1,020,214 | ) | | 689,217 | | Mortgage<br> loans | | 4,738,210 | | 345,024 | | | (2,950,776 | ) | | 1,038,511 | | | (1,717,587 | ) | | 1,453,382 | | Pledge loans | | 292,982 | | 113,999 | | | (21,278 | ) | | (15,925 | ) | | (138,926 | ) | | 230,852 | | Personal<br> loans | | 5,882,075 | | 1,208,987 | | | 643,245 | | | 666,537 | | | (3,351,792 | ) | | 5,049,052 | | Credit cards | | 3,830,187 | | 808,576 | | | 648,668 | | | 388,472 | | | (2,309,048 | ) | | 3,366,855 | | Financial<br> leases | | 34,666 | | 16,064 | | | 44 | | | (5,717 | ) | | (18,719 | ) | | 26,338 | | Other | | 4,091,864 | | 101,248 | | | (759,564 | ) | | 205,537 | | | (1,712,653 | ) | | 1,926,432 | | Eventual commitments | | 808,846 | | 525,705 | | | 116,778 | | | | | | (603,138 | ) | | 848,191 | | Other<br> debts securities | | 1,287 | | 471 | | | | | | | | | (789 | ) | | 969 | | Total<br> of allowances | | 23,711,346 | | 3,508,952 | | | (2,874,370 | ) | | 1,625,106 | | | (11,617,641 | ) | | 14,353,393 |
| - 76 - | Carlos A. Giovanelli<br> Vice Chairperson |
| --- | --- | | CONDENSED SEPARATE INTERIM STATEMENT OF FINANCIAL POSITION | | --- | | AS OF MARCH 31, 2023 AND DECEMBER 31, 2022 | | (Translation<br> of the Financial statements originally issued in Spanish – See Note 42) | | (Figures<br> stated in thousands of pesos in constant currency as of March 31, 2023) | | Items | Notes | Exhibits | 03/31/2023 | | 12/31/2022 | | | --- | --- | --- | --- | --- | --- | --- | | ASSETS | | | | | | | | Cash and Deposits in Banks | 9 | | | 287,624,265 | | 292,172,683 | | Cash | | | | 35,187,490 | | 33,612,152 | | Central Bank of Argentina | | | | 181,264,323 | | 174,718,240 | | Other Local and Foreign<br> Entities | | | | 71,158,885 | | 83,827,539 | | Other | | | | 13,567 | | 14,752 | | Debt Securities at fair value through<br> profit or loss | 9 | A | | 268,098,001 | | 239,492,465 | | Derivative Financial Instruments | 9 | | | 455 | | 52,222 | | Repo transactions | 9 | | | 39,118,052 | | 75,388,016 | | Other Financial Assets | 5,<br> 7 and 9 | R | | 52,439,132 | | 52,662,518 | | Loans and other financing | 6,<br> 7 and 9 | B, C, D and R | | 697,033,198 | | 728,417,099 | | Non-financial Public<br> Sector | | | | 1,409,863 | | 2,686,553 | | Other Financial Entities | | | | 1,856,903 | | 1,128,868 | | Non-financial Private<br> Sector and Foreign Residents | | | | 693,766,432 | | 724,601,678 | | Other Debt Securities | 7<br> and 9 | A and R | | 800,333,776 | | 887,989,783 | | Financial Assets delivered as guarantee | 9<br> and 30 | | | 36,808,060 | | 36,636,596 | | Equity Instruments at fair value through<br> profit or loss | 8<br> and 9 | A | | 908,745 | | 859,357 | | Investment in subsidiaries, associates<br> and joint arrangements | 11 | | | 23,769,148 | | 21,669,885 | | Property, plant and equipment | | F | | 124,349,482 | | 123,912,324 | | Intangible Assets | | G | | 21,593,417 | | 21,087,381 | | Other Non-financial Assets | 12 | | | 13,887,602 | | 13,991,803 | | Non-current Assets<br> held for sale | | | | 10,530,398 | | 10,780,918 | | TOTAL ASSETS | | | | 2,376,493,731 | | 2,505,113,050 |
| - 77 - | Carlos A. Giovanelli<br> Vice Chairperson |
| --- | --- | | CONDENSED SEPARATE INTERIM STATEMENT OF FINANCIAL POSITION | | --- | | AS OF MARCH 31, 2023 AND DECEMBER 31, 2022 | | (Translation<br> of the Financial statements originally issued in Spanish – See Note 42) | | (Figures<br> stated in thousands of pesos in constant currency as of March 31, 2023) | | Items | Notes | Exhibits | 03/31/2023 | | | 12/31/2022 | | | --- | --- | --- | --- | --- | --- | --- | --- | | LIABILITIES | | | | | | | | | Deposits | 9<br> and 14 | H and I | | 1,453,131,232 | | | 1,567,778,777 | | Non-financial Public Sector | | | | 111,059,915 | | | 133,847,469 | | Financial Sector | | | | 1,910,914 | | | 2,012,780 | | Non-financial Private Sector and Foreign<br> Residents | | | | 1,340,160,403 | | | 1,431,918,528 | | Derivative Financial Instruments | 9 | I | | 100,398 | | | 2,886 | | Repo Transactions | 9 | I | | 4,486,445 | | | | | Other Financial Liabilities | 9<br> and 15 | I | | 118,055,965 | | | 139,877,427 | | Financing received from the Central Bank of Argentina<br> and other financial institutions | 9 | I | | 4,506,639 | | | 2,981,069 | | Issued Corporate Bonds | 9<br> and 35 | I | | 3,546,892 | | | 3,656,522 | | Current Income Tax Liabilities | 20 | | | 8,978,297 | | | 10,902,187 | | Subordinated Corporate Bonds | 9<br> and 35 | I | | 86,599,261 | | | 87,981,313 | | Provisions | 16 | J and R | | 3,149,705 | | | 3,290,225 | | Deferred Income Tax Liabilities | | | | 16,410,094 | | | 16,093,778 | | Other Non-financial Liabilities | 17 | | | 44,827,715 | | | 48,779,723 | | TOTAL LIABILITIES | | | | 1,743,792,643 | | | 1,881,343,907 | | SHAREHOLDERS’ EQUITY | | | | | | | | | Capital Stock | 28 | K | | 639,413 | | | 639,413 | | Non-capital contributions | | | | 12,429,781 | | | 12,429,781 | | Adjustments to Shareholders’ Equity | | | | 213,790,374 | | | 213,790,374 | | Earnings Reserved | | | | 344,313,270 | | | 344,313,270 | | Unappropriated Retained Earnings | | | | 52,558,097 | | | 166,294 | | Accumulated Other Comprehensive Income | | | | (793,074 | ) | | 38,208 | | Net Income of the period / fiscal year | | | | 9,763,227 | | | 52,391,803 | | TOTAL SHAREHOLDERS’ EQUITY | | | | 632,701,088 | | | 623,769,143 | | TOTAL SHAREHOLDERS’ EQUITY<br> AND LIABILITIES | | | | 2,376,493,731 | | | 2,505,113,050 |
The notes 1 to 42 to the condensed separate interim Financial Statements and exhibits A to D, F to L, O, Q and R are an integral part of the condensed separate interim Financial Statements.
| - 78 - | Carlos A. Giovanelli<br> Vice Chairperson |
| --- | --- |
CONDENSED SEPARATE STATEMENT OF INCOME
FOR THE THREE MONTH PERIODS ENDED MARCH 31, 2023 AND 2022
(Translation of the Financial statements originally issued in Spanish – See Note 42)
(Figures stated in thousands of pesos in constant currency as of March 31, 2023)
| Items | Notes | Exhibits | Quarter ended<br> 03/31/2023 | Quarter ended<br> 03/31/2022 | |||||
|---|---|---|---|---|---|---|---|---|---|
| Interest income | Q | 228,108,335 | 140,413,379 | ||||||
| Interest expense | Q | (130,622,264 | ) | (54,907,354 | ) | ||||
| Net Interest Income | 97,486,071 | 85,506,025 | |||||||
| Commissions income | 21 | Q | 23,867,514 | 22,737,866 | |||||
| Commissions expense | Q | (1,838,559 | ) | (1,789,002 | ) | ||||
| Net Commissions Income | 22,028,955 | 20,948,864 | |||||||
| Subtotal (Net Interest income plus Net Commissions income) | 119,515,026 | 106,454,889 | |||||||
| Net gain from measurement of financial instruments at fair value through profit or loss | Q | 5,450,789 | 11,844,325 | ||||||
| Profit from sold or derecognized assets at amortized cost | 60 | ||||||||
| Differences in quoted prices of gold and foreign currency | 22 | 36,347,407 | 6,388,577 | ||||||
| Other operating income | 23 | 4,128,379 | 5,165,788 | ||||||
| Allowances for loan losses | (3,468,582 | ) | (1,521,487 | ) | |||||
| Net Operating Income | 161,973,079 | 128,332,092 | |||||||
| Employee benefits | 24 | (22,761,747 | ) | (19,608,723 | ) | ||||
| Administrative expenses | 25 | (11,174,219 | ) | (11,028,356 | ) | ||||
| Depreciation and amortization of fixed assets | F and G | (4,813,408 | ) | (4,413,405 | ) | ||||
| Other Operating Expenses | 26 | (23,239,836 | ) | (20,667,483 | ) | ||||
| Operating Income | 99,983,869 | 72,614,125 | |||||||
| Income from subsidiaries, associates and joint arrangements | 11 | 1,244,310 | 843,227 | ||||||
| Loss on net monetary position | (86,656,842 | ) | (58,480,814 | ) | |||||
| Income before tax on continuing operations | 14,571,337 | 14,976,538 | |||||||
| Income tax on continuing operations | 20 b) | (4,808,110 | ) | (2,678,500 | ) | ||||
| Net Income from continuing operations | 9,763,227 | 12,298,038 | |||||||
| Net Income of the period | 9,763,227 | 12,298,038 |
| - 79 - | Carlos A. Giovanelli<br> Vice Chairperson |
| --- | --- |
SEPARATE EARNINGS PER SHARE
FOR THE THREE MONTH PERIODS ENDED MARCH 31, 2023 AND 2022
(Translation of the Financial statements originally issued in Spanish – See Note 42)
(Figures stated in thousands of pesos in constant currency as of March 31, 2023)
| Items | Quarter ended<br> 03/31/2023 | Quarter ended<br> 03/31/2022 | ||
|---|---|---|---|---|
| Net Profit attributable to Parent’s shareholders | 9,763,227 | 12,298,038 | ||
| Plus: Potential diluted earnings per common share | ||||
| Net Profit attributable to Parent’s shareholders adjusted as per diluted earnings | 9,763,227 | 12,298,038 | ||
| Weighted average of outstanding common shares of the period | 639,413 | 639,413 | ||
| Plus: Weighted average of the number of additional common shares with dilution effects | ||||
| Weighted average of outstanding common shares for the fiscal year adjusted as per dilution effect | 639,413 | 639,413 | ||
| Basic earnings per share (in pesos) | 15.2690 | 19.2333 |
| - 80 - | Carlos A. Giovanelli<br> Vice Chairperson |
| --- | --- |
CONDENSED SEPARATE INTERIM STATEMENT OF OTHER COMPREHENSIVE INCOME
FOR THE THREE MONTH PERIODS ENDED MARCH 31, 2023 AND 2022
(Translation of the Financial statements originally issued in Spanish – See Note 42)
(Figures stated in thousands of pesos in constant currency as of March 31, 2023)
| Items | Notes | Exhibits | Quarter ended<br><br> 03/31/2023 | Quarter ended<br><br> 03/31/2022 | |||||
|---|---|---|---|---|---|---|---|---|---|
| Net Income of the period | 9,763,227 | 12,298,038 | |||||||
| Items of Other Comprehensive Income that will be reclassified to profit or loss | |||||||||
| Foreign currency translation differences in financial statements conversion | (211,961 | ) | (527,321 | ) | |||||
| Foreign currency translation differences of the period | (211,961 | ) | (527,321 | ) | |||||
| Profit or loss from financial instruments measured at fair value through other comprehensive income (FVOCI) (IFRS 9(4.1.2)(a)) | (655,628 | ) | (635,294 | ) | |||||
| Profit or loss of the period from financial instruments at fair value through other comprehensive income (FVOCI) | Q | (1,916,836 | ) | (3,254,628 | ) | ||||
| Adjustment for reclassification of the period | 908,177 | 2,277,253 | |||||||
| Income tax | 20.b) | 353,031 | 342,081 | ||||||
| Interest in Other Comprehensive Income / (Loss) of associates and joint ventures accounted for using the participation method | 36,307 | (57,967 | ) | ||||||
| Income / (Loss) for the fiscal year from interest in Other Comprehensive Income of associates and joint ventures accounted for using the participation method | 36,307 | (57,967 | ) | ||||||
| Total Other Comprehensive Loss that will be reclassified to profit or loss | (831,282 | ) | (1,220,582 | ) | |||||
| Total Other Comprehensive Loss | (831,282 | ) | (1,220,582 | ) | |||||
| Total Comprehensive Income of the period | 8,931,945 | 11,077,456 |
The notes 1 to 42 to the condensed separate interim Financial Statements and exhibits A to D, F to L, O, Q and R are an integral part of the condensed separate interim Financial Statements.
| - 81 - | Carlos A. Giovanelli<br> Vice Chairperson |
| --- | --- |
CONDENSED SEPARATE INTERIM STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY
FOR THE THREE MONTH PERIODS ENDED MARCH 31, 2023
(Translation of the Financial Statements originally issued in Spanish – See Note 42)
(Figures stated in thousands of pesos in constant currency as of March 31, 2023)
| Capital<br><br> stock | Non-capital<br><br> Contributions | Other<br> Comprehensive<br> Income | Earnings<br> Reserved | |||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Changes | Notes | Outstanding<br><br> shares | Additional<br><br> paid-in<br> capital | Adjustments<br><br> to<br> Shareholders’<br> Equity | Accumulated<br><br> foreign currency<br> translation<br> difference in<br> Financial<br> Statements<br> conversion | Other | Legal | Other | Unappropriated<br><br> Retained<br> Earnings | Total<br> <br> Equity | ||||||||||||
| Restated amount at<br> the beginning of the fiscal year | 639,413 | 12,429,781 | 213,790,374 | 547,873 | (509,665 | ) | 123,492,083 | 220,821,187 | 52,558,097 | 623,769,143 | ||||||||||||
| Total comprehensive income of<br> the period | ||||||||||||||||||||||
| - Net income of the period | 9,763,227 | 9,763,227 | ||||||||||||||||||||
| - Other<br> comprehensive loss of the period | (211,961 | ) | (619,321 | ) | (831,282 | ) | ||||||||||||||||
| Amount<br> at the end of the period | 639,413 | 12,429,781 | 213,790,374 | 335,912 | (1,128,986 | ) | 123,492,083 | 220,821,187 | 62,321,324 | 632,701,088 |
**** CONDENSED SEPARATE INTERIM STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY
FOR THE THREE MONTH PERIODS ENDED MARCH 31, 2022
(Translation of the Financial Statements originally issued in Spanish – See Note 42)
(Figures stated in thousands of pesos in constant currency as of March 31, 2023)
| Capital<br><br> stock | Non-capital<br><br> Contributions | Other<br> Comprehensive<br> Income | Earnings<br> Reserved | |||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Changes | Notes | Outstanding<br><br> shares | Additional<br><br> paid-in<br> capital | Adjustments<br><br> to<br> Shareholders’<br> Equity | Accumulated<br><br> foreign currency<br> translation<br> difference in<br> Financial<br> Statements<br> conversion | Other | Legal | Other | Unappropriated<br><br> Retained<br> Earnings | Total<br> <br> Equity | ||||||||||||
| Restated amount at<br> the beginning of the fiscal year | 639,413 | 12,429,781 | 213,790,374 | 1,423,115 | 5,382,088 | 114,859,656 | 174,022,226 | 43,162,129 | 565,708,782 | |||||||||||||
| Total comprehensive income of<br> the period | ||||||||||||||||||||||
| - Net income of the period | 12,298,038 | 12,298,038 | ||||||||||||||||||||
| - Other<br> comprehensive loss of the period | (527,321 | ) | (693,261 | ) | (1,220,582 | ) | ||||||||||||||||
| Amount<br> at the end of the period | 639,413 | 12,429,781 | 213,790,374 | 895,794 | 4,688,827 | 114,859,656 | 174,022,226 | 55,460,167 | 576,786,238 |
The notes 1 to 42 to the condensed separate interim Financial Statements and exhibits A to D, F to L, O, Q and R are an integral part of the condensed separate interim Financial Statements.
| - 82 - | Carlos A. Giovanelli<br> Vice Chairperson |
| --- | --- |
CONDENSED SEPARATE INTERIM STATEMENT OF CASH FLOWS
FOR THE THREE MONTH PERIODS ENDED MARCH 31, 2023 AND 2022
(Translation of the Financial Statements originally issued in Spanish – See Note 42)
(Figures stated in thousands of pesos in constant currency as of March 31, 2023)
| Items | Notes | 03/31/2023 | 03/31/2022 | ||||
|---|---|---|---|---|---|---|---|
| Cash flows from operating activities | |||||||
| Income of the period before income tax | 14,571,337 | 14,976,538 | |||||
| Adjustment for the total monetary effect of the period | 86,656,842 | 58,480,814 | |||||
| Adjustments to obtain cash flows from operating activities: | |||||||
| Amortization and depreciation | 4,813,408 | 4,413,405 | |||||
| Allowance for loan losses | 3,468,582 | 1,521,487 | |||||
| Difference in quoted prices of foreign currency | (24,285,553 | ) | (13,480,128 | ) | |||
| Other adjustments | 64,253,666 | 26,490,594 | |||||
| Net increase / (decrease) from operating assets: | |||||||
| Debt Securities at fair value through profit or loss | (28,605,536 | ) | 11,691,499 | ||||
| Derivative financial instruments | 51,767 | 3,073 | |||||
| Repo transactions | 36,269,964 | 74,471,421 | |||||
| Loans and other financing | |||||||
| Non-financial Public Sector | 1,276,690 | 1,364,087 | |||||
| Other Financial Entities | (728,035 | ) | 2,133,013 | ||||
| Non-financial Private Sector and Foreign Residents | 27,366,664 | 66,638,367 | |||||
| Other debt securities | 133,214,655 | (73,292,942 | ) | ||||
| Financial assets delivered as guarantee | (171,464 | ) | (22,901,356 | ) | |||
| Equity instruments at fair value through profit or loss | (49,388 | ) | 4,168,366 | ||||
| Other assets | (1,400,040 | ) | 31,633,883 | ||||
| Net increase / (decrease) from operating liabilities: | |||||||
| Deposits | |||||||
| Non-financial Public Sector | (22,787,554 | ) | 27,351,323 | ||||
| Financial Sector | (101,866 | ) | (167,275 | ) | |||
| Non-financial Private Sector and Foreign Residents | (91,758,125 | ) | (37,973,956 | ) | |||
| Derivative financial instruments | 97,512 | 9,221 | |||||
| Repo transactions | 4,486,445 | 24,216,929 | |||||
| Other liabilities | (26,283,975 | ) | (47,585,260 | ) | |||
| Income Tax Payments | (3,050,211 | ) | |||||
| Total cash from operating activities (A) | 177,305,785 | 154,163,103 |
| - 83 - | Carlos A. Giovanelli<br> Vice Chairperson |
| --- | --- |
CONDENSED SEPARATE INTERIM STATEMENT OF CASH FLOWS
FOR THE THREE MONTH PERIODS ENDED MARCH 31, 2023 AND 2022
(Translation of the Financial Statements originally issued in Spanish – See Note 42)
(Figures stated in thousands of pesos in constant currency as of March 31, 2023)
| Items | Notes | 03/31/2023 | 03/31/2022 | |||||
|---|---|---|---|---|---|---|---|---|
| Cash flows from investing activities | ||||||||
| Payments: | ||||||||
| Acquisition of PPE, intangible assets and other assets | (5,012,960 | ) | (2,994,951 | ) | ||||
| Total cash used in investing activities (B) | (5,012,960 | ) | (2,994,951 | ) | ||||
| Cash flows from financing activities | ||||||||
| Payments: | ||||||||
| Non-subordinated corporate bonds | (12,551 | ) | ||||||
| Other payments related to financing activities | (415,591 | ) | (255,667 | ) | ||||
| Collections / Incomes: | ||||||||
| Financing to local financial entities | 1,611,301 | 3,092,086 | ||||||
| Total cash used in financing activities (C) | 1,183,159 | 2,836,419 | ||||||
| Effect of exchange rate fluctuations (D) | 39,634,085 | 20,906,202 | ||||||
| Monetary effect on cash and cash equivalents (E) | (172,099,839 | ) | (109,729,203 | ) | ||||
| Net increase in cash and cash equivalents (A+B+C+D+E) | 41,010,230 | 65,181,570 | ||||||
| Restated Cash and cash equivalents at the beginning of the fiscal year | 27 | 890,513,474 | 713,286,157 | |||||
| Cash and cash equivalents at the end of the period | 27 | 931,523,704 | 778,467,727 |
The notes 1 to 42 to the condensed separate interim Financial Statements and exhibits A to D, F to L, O, Q and R are an integral part of the condensed separate interim Financial Statements.
| - 84 - | Carlos A. Giovanelli<br> Vice Chairperson |
| --- | --- |
NOTES TO THE CONDENSED SEPARATE INTERIM FINANCIALSTATEMENTS
AS OF MARCH 31, 2023
(Translation of Financial Statements originally issued in Spanish – See Note 42)
(Figures stated in thousands of pesos in constant currency)
| 1. | CORPORATE INFORMATION |
|---|
Banco Macro SA (hereinafter, the “Bank”) is a business corporation (sociedad anónima) organized in the Republic of Argentina that offers traditional banking products and services to companies, including those companies operating in regional economies as well as to individuals, thus strengthening its goal to be a multiservice bank. In addition, the Bank performs certain transactions through its subsidiaries Macro Bank Limited (a company organized under the laws of Bahamas), Macro Securities SAU, Macro Fiducia SAU, Macro Fondos SGFCISA, Argenpay SAU and Fintech SGR.
Macro Compañía Financiera SA was created in 1977 as a non-banking financial institution. In May 1988, it received the authorization to operate as a commercial bank and was incorporated as Banco Macro SA. Subsequently, as a result of the merger process with other entities, it adopted other names (among them, Banco Macro Bansud SA) and since August 2006, Banco Macro SA.
The Bank’s shares are publicly listed on Bolsas y Mercados Argentinos (BYMA) since November 1994 and as from March 24, 2006, they are listed on the New York Stock Exchange (NYSE). Additionally, on October 15, 2015 they were authorized to be listed on the Mercado Abierto Electrónico SA (MAE).
Since 1994, Banco Macro SA’s market strategy has mainly focused on the regional areas outside the Autonomous City of Buenos Aires (CABA, for its acronym in Spanish). Following this strategy, in 1996, Banco Macro SA started the process to acquire entities and assets and liabilities during the privatization of provincial and other banks.
In 2001, 2004, 2006 and 2010, the Bank acquired the control of Banco Bansud SA, Nuevo Banco Suquía SA, Nuevo Banco Bisel SA and Banco Privado de Inversiones SA, respectively. Such entities merged with and into Banco Macro SA in December 2003, October 2007, August 2009 and December 2013, respectively. During the fiscal year 2006, the Bank acquired control over Banco del Tucumán SA, which was merged with Banco Macro SA in October 2019. Additionally, on October 1, 2021, the Bank acquired the control of Fintech SGR that, as explained in note 3 to the consolidated Financial Statements as of December 31, 2022, already issued, this is a structured entity in which the Bank has control.
During 2022, 2021 and 2020 the Bank made irrevocable capital contributions in the company Play Digital SA for a total amount of 629,854 (not restated). On October 4, 2022, the Bank sold 22,112,340 shares for an amount of 61,889. In addition, on October 27, 2022, the Bank subscribed 178,911,312 shares for a face value of ARS 1 related to the abovementioned irrevocable capital contributions. As a consequence, the Bank’s new interest in this company is 9.6984%. Additionally, on February 23, 2023, the Bank made a new irrevocable capital contribution for an amount of 347,371 (not restated). See also note 1 to the condensed consolidated interim Financial Statements.
On May 17, 2023, the Board of Directors approved the issuance of these condensed separate interim Financial Statements.
| 2. | OPERATIONS OF THE BANK |
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Note 2 to the condensed consolidated interim Financial Statements includes a detailed description of the agreements that relate the Bank with the Provincial and Municipal governments.
| 3. | BASIS FOR THE PREPARATION OF THESE FINANCIAL STATEMENTS AND APPLICABLE ACCOUNTING STANDARDS |
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Applicable Accounting Standards
These condensed separate interim Financial Statements of the Bank were prepared in accordance with the accounting framework established by the Central Bank of Argentina (BCRA, for its acronym in Spanish), in its Communiqué “A” 6114 as supplemented. Except for the exceptions established by the BCRA, which are explained in the following paragraph, such framework is based on International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB) and adopted by the Argentine Federation of Professionals Councils in Economic Sciences (FACPCE, for its acronym in Spanish). The abovementioned international standards include the IFRS, the International Accounting Standards (IAS) and the interpretations developed by the IFRS Interpretations Committee (IFRIC) or former IFRIC (SIC).
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NOTES TO THE CONDENSED SEPARATE INTERIM FINANCIALSTATEMENTS
AS OF MARCH 31, 2023
(Translation of Financial Statements originally issued in Spanish – See Note 42)
(Figures stated in thousands of pesos in constant currency)
The transitory exceptions and regulatory guidelines established by BCRA to the application of effective IFRS, that affect the preparation of these condensed separate interim Financial Statements are as follows:
| a) | According to Communiqué “A”<br> 6114, as supplemented, and in the convergence process through IFRS, the BCRA established<br> that since fiscal years beginning on or after January 1, 2020, financial institutions<br> defined as “Group A” by BCRA rules, in which the Bank is included, begin to apply<br> section 5.5 “Impairment” of the IFRS 9 “Financial Instruments” (sections<br> B5.5.1 to B5.5.55), except for the temporary exclusion for the debt securities of the non-financial<br> public sector established by BCRA Communiqué “A” 6847. As of the date<br> of issuance of these condensed separate interim Financial Statements, the Bank is in the<br> process of quantifying the effect of the full application of the abovementioned standard. |
|---|---|
| b) | In March 2022, the Bank’s<br> holding in Prisma Medios de Pago SA (Prisma) were transferred. That company was measured<br> according to the Memorandums received from the BCRA on March 12 and 22, 2021, which<br> established specific guidelines related to the measurement at fair value of such holding.<br> If, for the fair value measurement purpose previously mentioned, IFRS had been applied,<br> the profit or loss for the three-month period ended March 31, 2022, should have been<br> modified. However, this situation did not generate differences in the shareholders’<br> equity as of March 31, 2022. |
| --- | --- |
| c) | Through Communiqué “A 7014<br> dated May 14, 2020, the BCRA established for financial institutions that received debt<br> securities of the public sector in a swap transaction, they must be initially recognized<br> at their carrying amount as of the date of the swap transaction, without assessing if they<br> qualify or not for derecognition under IFRS 9 standards and as a consequence, do not eventually<br> recognize the new instruments at the market value as provided by such IFRS (see also notes<br> 9 and 43 to the condensed consolidated interim Financial Statements). |
| --- | --- |
If IFRS 9 had applied, and according an estimation calculated by the Bank, the Statement of income of the period ended March 31, 2023, would have recorded a decrease in “other operating income” for an amount of 353,926 and an increase in “Net gain from measurement of financial instruments at fair value through profit or loss” for an amount of 734,550, and as a counterpart a decrease in “Other comprehensive income” of that period. These changes would not have resulted into modifications to the total shareholder equity as of that date nor the total comprehensive income for the three-month period ended March 31, 2023.
Applicable Accounting Standards
Except for what was mentioned in the previous paragraphs, the accounting policies applied by the Bank comply with the IFRS as currently approved and are applicable to the preparation of these condensed separate interim Financial Statements in accordance with the IFRS as adopted by the BCRA through Communiqué “A” 7642. Generally, the BCRA does not allow the anticipated application of any IFRS, unless otherwise expressly stated.
Note 3 to the consolidated Financial Statements as of December 31, 2022, already issued, presents further detailed descriptions of the basis for the presentation of such Financial Statements and the main accounting policies used and the relevant information of the subsidiaries. All that is explained therein shall apply to these condensed separate interim Financial Statements, except for the goodwill generated by the business combination, as mentioned in note 10, which according to BCRA Communiqué “A” 6618, in the condensed separate interim Financial Statements, is included in the net investment of the subsidiary.
Going concern
The Bank’s Management has made an assessment of its ability to continue as a going concern and is satisfied that it has the resources to continue in business for the foreseeable future. Furthermore, management is not aware of any material uncertainties that may cast significant doubt on the Bank’s ability to continue as a going concern. Therefore, these condensed separate interim Financial Statements continue to be prepared on the going concern basis.
Subsidiaries
As mentioned in note 1, the Bank performs certain transactions through its subsidiaries.
Subsidiaries are all the entities controlled by the Bank. An entity controls another entity when it is exposed, or has rights, to variable returns from its continuing involvement with such other entity and has the ability to use its power to direct the operating and financing policies of such other entity, to affect the amounts of such returns.
As provided under IAS 27 “Consolidated and Separate Financial Statements”, investments in subsidiaries were accounted for using the “equity method”, established in IAS 28 “Investment in associates and joint ventures”. When using this method, investments are initially recognized at cost, and such amount increases or decreases to recognize investor’s interest in profit and loss of the entity after the date of acquisition or creation.
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NOTES TO THE CONDENSED SEPARATE INTERIM FINANCIALSTATEMENTS
AS OF MARCH 31, 2023
(Translation of Financial Statements originally issued in Spanish – See Note 42)
(Figures stated in thousands of pesos in constant currency)
Shares in profit and loss of subsidiaries and associates are recognized under “Income / (loss) from subsidiaries, associates and joint ventures” in the condensed separate interim statement of income. Ownership interest in other comprehensive income of subsidiaries is accounted for under “Income / (loss) of the period from interest in other comprehensive income of subsidiaries, associates and joint ventures accounted for using the participation method”, in the condensed separate interim statement of other comprehensive income.
Transcription into books
As of the date of issuance of these condensed separate interim Financial Statements, they are in the process of being transcribed into the Financial Statements book (“Libro Balances”) of Banco Macro SA.
New standards adopted
New standards adopted are described in note 3 to the condensed consolidated interim Financial Statements.
New pronouncements
New pronouncements are described in note 3 to the condensed consolidated interim Financial Statements.
| 4. | CONTINGENT TRANSACTIONS |
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In order to meet specific financial needs of customers, the Bank’s credit policy also includes, among others, the granting of guarantees, securities, bonds, letters of credit and documentary credits. The Bank is also exposed to overdrafts and unused agreed credits on credit cards of the Bank. Since they imply a contingent obligation for the Bank, they expose the Bank to credit risks other than those recognized in the statement of financial position and, therefore, they are an integral part of the total risk of the Bank.
As of March 31, 2023 and December 31, 2022, the Bank maintains the following maximum exposures to credit risk related to this type of transactions:
| Composition | 03/31/2023 | 12/31/2022 | ||||
|---|---|---|---|---|---|---|
| Undrawn commitments<br> of credit cards and checking accounts | 693,868,495 | 814,281,350 | ||||
| Guarantees granted (1) | 8,458,510 | 6,321,754 | ||||
| Overdraft and unused agreed<br> commitments (1) | 2,373,837 | 746,577 | ||||
| Subtotal | 704,700,842 | 821,349,681 | ||||
| Less: Allowance for ECL | (805,059 | ) | (835,722 | ) | ||
| Total | 703,895,783 | 820,513,959 | ||||
| (1) | Includes transactions not covered by<br> BCRA debtor classification standard. The Guarantees granted include an amount of 31,303 and<br> 44,933 as of March 31, 2023 and December 31, 2022, respectively. The Overdraft<br> and unused agreed commitments include an amount of 159,684 and 552,065 as of March 31,<br> 2023 and December 31, 2022, respectively, | |||||
| --- | --- |
Risks related to the abovementioned contingent transactions have been assessed and are controlled within the framework of the Bank’s credit risk policy, as described in note 45 to the consolidated Financial Statements as of December 31, 2022, already issued.
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NOTES TO THE CONDENSED SEPARATE INTERIM FINANCIALSTATEMENTS
AS OF MARCH 31, 2023
(Translation of Financial Statements originally issued in Spanish – See Note 42)
(Figures stated in thousands of pesos in constant currency)
| 5. | OTHER FINANCIAL ASSETS |
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The composition of the other financial assets as of March 31, 2023 and December 31, 2022 is as follows:
| Composition | 03/31/2023 | 12/31/2022 | ||||
|---|---|---|---|---|---|---|
| Sundry debtors (see<br> note 8) | 30,776,962 | 32,499,699 | ||||
| Receivables from<br> spot sales of foreign currency pending settlement | 20,970,944 | 19,479,890 | ||||
| Receivables from<br> spot sales of government securities pending settlement | 339,531 | 267,795 | ||||
| Private securities | 55,142 | 60,154 | ||||
| Other | 407,315 | 465,806 | ||||
| Subtotal | 52,549,894 | 52,773,344 | ||||
| Less: Allowances<br> for ECL | (110,762 | ) | (110,826 | ) | ||
| Total | 52,439,132 | 52,662,518 |
Disclosures related to allowance for ECL are detailed in note 7 “Loss allowance for expected credit losses on credit exposures not measured at fair value through profit or loss”.
| 6. | LOANS AND OTHER FINANCING |
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The composition of loans and other financing as of March 31, 2023 and December 31, 2022 is as follows:
| Composition | 03/31/2023 | 12/31/2022 | ||||
|---|---|---|---|---|---|---|
| Non-financial Public Sector (1) | 1,409,863 | 2,686,553 | ||||
| Other Financial Entities | 1,856,903 | 1,128,868 | ||||
| Other Financial Entities | 1,869,278 | 1,138,778 | ||||
| Less: allowance for ECL | (12,375 | ) | (9,910 | ) | ||
| Non-financial Private Sector and Foreign Residents | 693,766,432 | 724,601,678 | ||||
| Overdrafts | 53,784,081 | 59,932,944 | ||||
| Documents | 100,150,287 | 98,726,003 | ||||
| Mortgage loans | 71,414,283 | 75,359,519 | ||||
| Pledge loans | 10,968,997 | 11,663,515 | ||||
| Personal loans | 160,793,464 | 173,504,702 | ||||
| Credit cards | 216,178,489 | 232,239,948 | ||||
| Financial leases | 1,345,129 | 1,688,186 | ||||
| Other | 93,124,978 | 84,855,186 | ||||
| Less: allowance for ECL | (13,993,276 | ) | (13,368,325 | ) | ||
| Total | 697,033,198 | 728,417,099 |
(1) As explained in note 3, ECL are not calculated to public sector exposures.
| 7. | LOSS ALLOWANCE FOR EXPECTED CREDIT LOSSES ON CREDIT EXPOSURES NOT MEASURED AT FAIR VALUE THROUGH PROFIT OR LOSS |
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Note 8 to the condensed consolidated interim Financial Statements, details the allowances recognized by the Bank under this concept.
In addition, exhibit R “Value adjustment for credit losses – Allowance for uncollectibility risk” also discloses the ECL movements by portfolio and products.
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NOTES TO THE CONDENSED SEPARATE INTERIM FINANCIALSTATEMENTS
AS OF MARCH 31, 2023
(Translation of Financial Statements originally issued in Spanish – See Note 42)
(Figures stated in thousands of pesos in constant currency)
| 8. | EQUITY INSTRUMENTS AT FAIR VALUE THROUGH PROFIT OR LOSS – PRISMA MEDIOS DE PAGO SA |
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The composition of equity instruments at fair value through profit or loss, as of March 31, 2023 and December 31, 2022, is detailed in Exhibit A. For the Bank’s investment in Prisma Medios de Pago SA, see also note 10 to the condensed consolidated interim Financial Statements.
| 9. | FAIR VALUE QUANTITATIVE AND QUALITATIVE DISCLOSURES |
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Note 11 to the condensed consolidated interim Financial Statements describes the methods and assumptions used to determine the fair value, both of the financial instruments recognized at fair value as of those not accounted for at such fair value in these condensed separate interim Financial Statements.
In addition, the Bank discloses the relevant information as to instruments included in Level 3 of the fair value hierarchy.
Even though the Bank’s Management has used its best judgment to estimate the fair values of its financial instruments, any technique to perform such estimate implies certain inherent fragility level.
Fair value hierarchy
The Bank uses the following hierarchy to determine and disclose the fair value of financial instruments, according to the valuation technique applied:
| - | Level 1: quoted prices (unadjusted) observable<br> in active markets that the Bank accesses to at the measurement day for identical assets or<br> liabilities. The Bank considers markets as active only if there are sufficient trading activities<br> with respect to the volume and liquidity of the identical assets or liabilities and when<br> there are binding and exercisable price quotes available at each reporting period. |
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| - | Level 2: Valuation techniques for which<br> the data and variables having a significant impact on the determination of the fair value<br> recognized or disclosed are observable for the asset or liability, either directly or indirectly.<br> Such inputs include quoted prices for similar assets or liabilities in active markets, quoted<br> prices for identical instruments in inactive markets and observable inputs other than quoted<br> prices, such as interest rates and yield curves, implied volatilities, and credit spreads.<br> In addition, adjustments to level 2 inputs may be required for the condition or location<br> of the asset or the extent to which it relates to items that are comparable to the valued<br> instrument. However, if such adjustments are based on unobservable inputs that are significant<br> to the entire measurement, the Bank will classify the instruments as Level 3. |
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| - | Level 3: Valuation techniques for which<br> the data and variables having a significant impact on the determination of the fair value<br> recognized or disclosed are not based on observable market information. |
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The following tables show the hierarchy in the Bank’s financial asset and liability at fair value measurement, as of March 31, 2023 and December 31, 2022:
| Financial assets and financial liabilities measured at fair value | ||||||||
|---|---|---|---|---|---|---|---|---|
| on a recurring basis<br> as of March 31, 2023 | ||||||||
| Description | Total | Level 1 | Level 2 | Level 3 | ||||
| Financial assets | ||||||||
| At fair value through profit or loss | ||||||||
| Debt securities at fair value through profit or loss | 268,098,001 | 267,441,412 | 656,589 | |||||
| Derivative financial instruments | 455 | 234 | 221 | |||||
| Other financial assets | 55,142 | 55,142 | ||||||
| Financial assets delivered as guarantee | 1,791,980 | 1,791,980 | ||||||
| Equity instruments at fair value through profit or loss | 908,745 | 26,528 | 882,217 | |||||
| At fair value through OCI | ||||||||
| Other debt Securities | 75,160,995 | 75,160,995 | ||||||
| Financial assets delivered as guarantee | 3,319,457 | 3,319,457 | ||||||
| Total | 349,334,775 | 347,740,606 | 221 | 1,593,948 |
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NOTES TO THE CONDENSED SEPARATE INTERIM FINANCIALSTATEMENTS
AS OF MARCH 31, 2023
(Translation of Financial Statements originally issued in Spanish – See Note 42)
(Figures stated in thousands of pesos in constant currency)
| Financial assets and financial liabilities measured at fair value | ||||||||
|---|---|---|---|---|---|---|---|---|
| on a recurring basis<br> as of March 31, 2023 | ||||||||
| Description | Total | Level 1 | Level 2 | Level 3 | ||||
| Financial liabilities | ||||||||
| At fair value through profit or loss | ||||||||
| Derivatives financial instruments | 100,398 | 100,079 | 319 | |||||
| Total | 100,398 | 100,079 | 319 | |||||
| Financial assets and financial liabilities measured at fair value | ||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| on a recurring basis<br> as of December 31, 2022 | ||||||||
| Description | Total | Level 1 | Level 2 | Level 3 | ||||
| Financial assets | ||||||||
| At fair value through profit or loss | ||||||||
| Debt securities at fair value through profit or loss | 239,492,465 | 238,236,353 | 1,256,112 | |||||
| Derivatives financial instruments | 52,222 | 23,364 | 28,858 | |||||
| Other financial assets | 60,154 | 60,154 | ||||||
| Equity instruments at fair value through profit or loss | 859,357 | 25,511 | 833,846 | |||||
| At fair value through OCI | ||||||||
| Other debt Securities | 158,089,831 | 158,089,831 | ||||||
| Total | 398,554,029 | 396,375,059 | 28,858 | 2,150,112 | ||||
| Financial liabilities | ||||||||
| --- | --- | --- | ||||||
| At fair value through profit or loss | ||||||||
| Derivatives financial instruments | 2,886 | 2,886 | ||||||
| Total | 2,886 | 2,886 |
Below is the reconciliation between the amounts at the beginning and the end of the period or fiscal year, as applicable, for the financial assets recognized at fair value, categorized as level 3:
| As of March 31, 2023 | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| Equity instruments | |||||||||
| at fair value | |||||||||
| Reconciliation | Debt instruments | Other financial assets | through profit or loss | ||||||
| Amount at the beginning | 1,256,112 | 60,154 | 833,846 | ||||||
| Transfers to Level 3 | |||||||||
| Transfers from Level 3 | |||||||||
| Profit and loss | 195,593 | (279 | ) | 197,303 | |||||
| Recognition and derecognition | (570,178 | ) | 7,087 | ||||||
| Monetary effects | (224,938 | ) | (11,820 | ) | (148,932 | ) | |||
| Amount at the end of the period | 656,589 | 55,142 | 882,217 |
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NOTES TO THE CONDENSED SEPARATE INTERIM FINANCIALSTATEMENTS
AS OF MARCH 31, 2023
(Translation of Financial Statements originally issued in Spanish – See Note 42)
(Figures stated in thousands of pesos in constant currency)
| As of December 31, 2022 | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| Equity instruments | |||||||||
| Other financial | at fair value | ||||||||
| Reconciliation | Debt instruments | assets | through profit or loss | ||||||
| Amount at the beginning | 2,648,116 | 73,559 | 5,008,120 | ||||||
| Transfers to Level 3 | |||||||||
| Transfers from Level 3 | |||||||||
| Profit and loss | 890,158 | 6,164 | 4,377 | ||||||
| Recognition and derecognition | (976,251 | ) | 25,638 | (3,053,093 | ) | ||||
| Monetary effects | (1,305,911 | ) | (45,207 | ) | (1,125,558 | ) | |||
| Amount at the end of the fiscal year | 1,256,112 | 60,154 | 833,846 |
Note 11 to the condensed consolidated interim Financial Statements, details the valuation techniques and significant unobservable inputs used in the valuation of assets at Level 3.
Changes in fair value levels
The Bank monitors the availability of information in the market to evaluate the classification of financial instruments into the fair value hierarchy as well as the resulting determination of transfers between levels 1, 2 and 3 at each period or fiscal year, as applicable.
As of March 31, 2023 and December 31, 2022, the Bank has not recognized any transfers between levels 1, 2 and 3 of the fair value hierarchy.
Financial assets and liabilities not measured at fair value
The following table shows a comparison between the fair value and the carrying amount of financial instruments not recognized at fair value as of March 31, 2023 and December 31, 2022:
| 03/31/2023 | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Composition | Carrying<br><br> amount | Level 1 | Level 2 | Level 3 | Fair value | |||||
| Financial assets | ||||||||||
| Cash and deposits in banks | 287,624,265 | 287,624,265 | 287,624,265 | |||||||
| Repo transactions | 39,118,052 | 39,118,052 | 39,118,052 | |||||||
| Other financial assets | 52,383,990 | 52,383,990 | 52,383,990 | |||||||
| Loans and other financing | 697,033,198 | 631,734,848 | 631,734,848 | |||||||
| Other debt securities | 725,172,781 | 618,271,886 | 81,591,491 | 24,657,989 | 724,521,366 | |||||
| Financial assets delivered as guarantee | 31,696,623 | 31,696,623 | 31,696,623 | |||||||
| Total | 1,833,028,909 | 1,029,094,816 | 81,591,491 | 656,392,837 | 1,767,079,144 | |||||
| Financial liabilities | ||||||||||
| --- | --- | --- | --- | --- | --- | |||||
| Deposits | 1,453,131,232 | 648,272,327 | 803,151,129 | 1,451,423,456 | ||||||
| Repo transactions | 4,486,445 | 4,486,445 | 4,486,445 | |||||||
| Other financial liabilities | 118,055,965 | 112,987,146 | 5,126,960 | 118,114,106 | ||||||
| Financing received from the BCRA and other financial institutions | 4,506,639 | 4,417,755 | 51,995 | 4,469,750 | ||||||
| Issued corporate bonds | 3,546,892 | 3,494,576 | 3,494,576 | |||||||
| Subordinated corporate bonds | 86,599,261 | 69,224,448 | 69,224,448 | |||||||
| Total | 1,670,326,434 | 770,163,673 | 77,897,979 | 803,151,129 | 1,651,212,781 |
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NOTES TO THE CONDENSED SEPARATE INTERIM FINANCIALSTATEMENTS
AS OF MARCH 31, 2023
(Translation of Financial Statements originally issued in Spanish – See Note 42)
(Figures stated in thousands of pesos in constant currency)
| 12/31/2022 | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Composition | Carrying<br><br> amount | Level 1 | Level 2 | Level 3 | Fair value | |||||
| Financial assets | ||||||||||
| Cash and deposits in banks | 292,172,683 | 292,172,683 | 292,172,683 | |||||||
| Repo transactions | 75,388,016 | 75,388,016 | 75,388,016 | |||||||
| Other financial assets | 52,602,364 | 52,602,364 | 52,602,364 | |||||||
| Loans and other financing | 728,417,099 | 635,369,471 | 635,369,471 | |||||||
| Other debt securities | 729,899,952 | 622,932,157 | 100,635,729 | 117,233 | 723,685,119 | |||||
| Financial assets delivered as guarantee | 36,636,596 | 36,636,596 | 36,636,596 | |||||||
| Total | 1,915,116,710 | 1,079,731,816 | 100,635,729 | 635,486,704 | 1,815,854,249 | |||||
| Financial liabilities | ||||||||||
| --- | --- | --- | --- | --- | --- | |||||
| Deposits | 1,567,778,777 | 781,754,500 | 784,737,152 | 1,566,491,652 | ||||||
| Other financial liabilities | 139,877,427 | 134,643,089 | 5,322,022 | 139,965,111 | ||||||
| Financing received from the BCRA and other financial institutions | 2,981,069 | 2,899,849 | 62,682 | 2,962,531 | ||||||
| Issued corporate bonds | 3,656,522 | 3,570,987 | 3,570,987 | |||||||
| Subordinated corporate bonds | 87,981,313 | 71,805,727 | 71,805,727 | |||||||
| Total | 1,802,275,108 | 919,297,438 | 80,761,418 | 784,737,152 | 1,784,796,008 | |||||
| 10. | BUSINESS COMBINATIONS | |||||||||
| --- | --- |
On October 1, 2021, the Bank exercised the call option to reach 24.99% of the equity interest in Fintech SGR, being this a structured entity in which the Bank has control. Details generated by this transaction are described in note 12 to the condensed consolidated interim Financial Statements.
| 11. | INVESTMENTS IN SUBSIDIARIES, ASSOCIATES AND JOINT ARRANGEMENTS |
|---|
The Bank’s interests in associates and joint ventures are disclosed in note 13 to the condensed consolidated interim Financial Statements.
| 12. | OTHER NON-FINANCIAL ASSETS |
|---|
The composition of other non-financial assets as of March 31, 2023 and December 31, 2022 is as follows:
| Composition | 03/31/2023 | 12/31/2022 | ||
|---|---|---|---|---|
| Investment property (see Exhibit F) | 10,057,495 | 9,685,859 | ||
| Advanced prepayments | 3,156,132 | 2,806,735 | ||
| Tax advances | 616,441 | 1,449,733 | ||
| Other | 57,534 | 49,476 | ||
| Total | 13,887,602 | 13,991,803 |
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NOTES TO THE CONDENSED SEPARATE INTERIM FINANCIALSTATEMENTS
AS OF MARCH 31, 2023
(Translation of Financial Statements originally issued in Spanish – See Note 42)
(Figures stated in thousands of pesos in constant currency)
| 13. | RELATED PARTIES |
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A related party is a person or entity that is related to the Bank:
| - | has control or joint control of the Bank; |
|---|---|
| - | has significant influence over the Bank; |
| --- | --- |
| - | is a member of the key management personnel<br> of the Bank or of a parent of the Bank; |
| --- | --- |
| - | members of the same group; |
| --- | --- |
| - | one entity is an associate (or an associate<br> of a member of a group of which the other entity is a member), |
| --- | --- |
Key management personnel are those persons having authority and responsibility for planning, directing and controlling the activities of the Bank, directly or indirectly, The Bank considers as key management personnel, for the purposes of IAS 24, the members of the Board of Directors and the senior management members of the Risk Management Committee, the Assets and Liabilities Committee and the Senior Credit Committee,
As of March 31, 2023 and December 31, 2022, amounts balances related to transactions generated with related parties are as follows:
| As of March 31, 2023 | ||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Main subsidiaries | ||||||||||||||||||
| **** | Macro | Macro | **** | **** | **** | Key | Other | **** | ||||||||||
| Macro Bank | Securities | Fondos | Argenpay | Fintech | management | related | ||||||||||||
| Limited | SAU | SGFCISA | SAU | SGR | Associates | personnel (1) | parties | Total | ||||||||||
| Assets | ||||||||||||||||||
| Cash and deposits in banks | 1,675 | 1,675 | ||||||||||||||||
| Other financial assets | 2,793,910 | 2,793,910 | ||||||||||||||||
| Loans and other financing (2) | ||||||||||||||||||
| Documents | 36,176 | 36,176 | ||||||||||||||||
| Overdraft | 2,043 | 1,419,106 | 1,421,149 | |||||||||||||||
| Credit cards | 126,892 | 35,258 | 162,150 | |||||||||||||||
| Lease | 64,406 | 64,406 | ||||||||||||||||
| Personal loans | 708 | 708 | ||||||||||||||||
| Mortgage loans | 613,118 | 613,118 | ||||||||||||||||
| Other loans (3) | 2,113,739 | 175,189 | 2,509,657 | 4,798,585 | ||||||||||||||
| Guarantee granted | 3,150,008 | 3,150,008 | ||||||||||||||||
| Total assets | 1,675 | 2,113,739 | 2,793,910 | 917,950 | 7,214,611 | 13,041,885 | ||||||||||||
| Liabilities | ||||||||||||||||||
| Deposits | 3,224,547 | 78,343 | 150,282 | 84 | 95,220 | 912,957 | 613,105 | 5,074,538 | ||||||||||
| Other financial liabilities | 711 | 33,262 | 33,973 | |||||||||||||||
| Issued corporate bonds | 49,202 | 211,259 | 260,461 | |||||||||||||||
| Subordinated corporate bonds | 205,673 | 205,673 | ||||||||||||||||
| Other non-financial liabilities | 25,655 | 25,655 | ||||||||||||||||
| Total liabilities | 3,273,749 | 289,602 | 150,282 | 205,757 | 95,220 | 913,668 | 672,022 | 5,600,300 | ||||||||||
| (1) | Includes close family members of the key<br> management personnel. | |||||||||||||||||
| --- | --- | |||||||||||||||||
| (2) | The maximum financing amount for loans and<br> other financing as of March 31, 2023 for Macro Securities SAU, key management personnel<br> and other related parties amounted to 4,903,418, 1,234,509 and 9,890,238, respectively. | |||||||||||||||||
| --- | --- | |||||||||||||||||
| (3) | It is related to Loans and other financing<br> not disclosed in other items, mainly other loans, financing of foreign exchange transactions<br> and loans with government securities. | |||||||||||||||||
| --- | --- |
| - 93 - |
| --- |
NOTES TO THE CONDENSED SEPARATE INTERIM FINANCIALSTATEMENTS
AS OF MARCH 31, 2023
(Translation of Financial Statements originally issued in Spanish – See Note 42)
(Figures stated in thousands of pesos in constant currency)
| As of December 31, 2022 | ||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Main subsidiaries | ||||||||||||||||||
| Macro | Macro | Key | Other | |||||||||||||||
| Macro Bank | Securities | Fondos | Argenpay | Fintech | management | related | ||||||||||||
| Limited | SAU | SGFCISA | SAU | SGR | Associates | personnel<br> (1) | parties | Total | ||||||||||
| Assets | ||||||||||||||||||
| Cash and deposits in banks | 1,727 | 1,727 | ||||||||||||||||
| Other financial assets | 3,672,708 | 3,672,708 | ||||||||||||||||
| Loans and other financing (2) | ||||||||||||||||||
| Overdraft | 68,476 | 512,404 | 580,880 | |||||||||||||||
| Credit cards | 198,683 | 60,647 | 259,330 | |||||||||||||||
| Lease | 81,178 | 81,178 | ||||||||||||||||
| Personal loans | 1,415 | 1,415 | ||||||||||||||||
| Mortgage loans | 660,498 | 660,498 | ||||||||||||||||
| Other loans (3) | 2,572,659 | 184,849 | 1,704,400 | 4,461,908 | ||||||||||||||
| Guarantee granted | 1,874,704 | 1,874,704 | ||||||||||||||||
| Total assets | 1,727 | 2,572,659 | 3,672,708 | 1,113,921 | 4,233,333 | 11,594,348 | ||||||||||||
| Liabilities | ||||||||||||||||||
| Deposits | 3,574,433 | 79,556 | 70,773 | 141 | 103,119 | 1,220,144 | 1,456,270 | 6,504,436 | ||||||||||
| Other financial liabilities | 624 | 14,209 | 14,833 | |||||||||||||||
| Issued corporate bonds | 133,023 | 217,788 | 350,811 | |||||||||||||||
| Subordinated corporate bonds | 175,963 | 175,963 | ||||||||||||||||
| Other non-financial liabilities | 24,609 | 24,609 | ||||||||||||||||
| Total liabilities | 3,707,456 | 297,344 | 70,773 | 176,104 | 103,119 | 1,220,768 | 1,495,088 | 7,070,652 | ||||||||||
| (1) | Includes close family members of the key<br> management personnel. | |||||||||||||||||
| --- | --- | |||||||||||||||||
| (2) | The maximum financing amount for loans and<br> other financing as of December 31, 2022 for Macro Securities SAU, Fintech SGR, key management<br> personnel and other related parties amounted to 5,512,558, 3,086,490, 1,543,390 and 20,499,932,<br> respectively. | |||||||||||||||||
| --- | --- | |||||||||||||||||
| (3) | It is related to Loans and other financing<br> not disclosed in other items, mainly other loans, financing of foreign exchange transactions<br> and loans with governments securities. | |||||||||||||||||
| --- | --- |
Profit or loss related to transactions generated during the three-month periods ended March 31, 2023 and 2022 with related parties are as follows:
| As of March 31, 2023 | ||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Main subsidiaries | ||||||||||||||||||||||
| Macro | Macro | Key | Othe | |||||||||||||||||||
| Macro Bank | Securities | Fondos | Argenpay | Fintech | management | related | ||||||||||||||||
| Limited | SAU | SGFCISA | SAU | SGR | Associates | personnel (1) | parties | Total | ||||||||||||||
| Income / (loss) | ||||||||||||||||||||||
| Interest income | 819 | 105,853 | 362,832 | 469,504 | ||||||||||||||||||
| Interest expense | (8,177 | ) | (26,596 | ) | (20,142 | ) | (54,915 | ) | ||||||||||||||
| Commissions income | 11,491 | 50 | 292 | 232 | 47 | 6,697 | 18,809 | |||||||||||||||
| Commissions expense | (4,879 | ) | (12 | ) | (4,891 | ) | ||||||||||||||||
| Other operating income | 26,066 | 13 | 422,414 | 18 | 448,511 | |||||||||||||||||
| Administrative expense | (270,783 | ) | (270,783 | ) | ||||||||||||||||||
| Other operating expense | (17,504 | ) | (17,504 | ) | ||||||||||||||||||
| Total Income / (loss) | 38,376 | 50 | 13 | 417,827 | (7,945 | ) | 79,292 | 61,118 | 588,731 | |||||||||||||
| (1) | Includes close family members of the<br> key management personnel. | |||||||||||||||||||||
| --- | --- |
| - 94 - |
| --- |
NOTES TO THE CONDENSED SEPARATE INTERIM FINANCIALSTATEMENTS
AS OF MARCH 31, 2023
(Translation of Financial Statements originally issued in Spanish – See Note 42)
(Figures stated in thousands of pesos in constant currency)
| As of March 31, 2022 | ||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Main subsidiaries | ||||||||||||||||||||||
| **** | **** | Macro | Macro | **** | **** | **** | **** | Key | **** | Other | **** | **** | **** | |||||||||
| Macro Bank | Securities | Fondos | Argenpay | Fintech | management | related | ||||||||||||||||
| Limited | SAU | SGFCISA | SAU | SGR | Associates | personnel (1) | parties | Total | ||||||||||||||
| Income / (loss) | ||||||||||||||||||||||
| Interest income | 1,851 | 106,218 | 470,654 | 578,723 | ||||||||||||||||||
| Interest expense | (5,199 | ) | (30,111 | ) | (2,419 | ) | (37,729 | ) | ||||||||||||||
| Commissions income | 782 | 51 | 304 | 72 | 8 | 14,873 | 16,090 | |||||||||||||||
| Commissions expense | (10 | ) | (501 | ) | (511 | ) | ||||||||||||||||
| Other operating income | 2 | 2,374 | 31 | 16 | 2,423 | |||||||||||||||||
| Administrative expense | (140,599 | ) | (140,599 | ) | ||||||||||||||||||
| Other operating expense | (26,981 | ) | (26,981 | ) | ||||||||||||||||||
| Total Income / (loss) | 2 | 5,007 | 51 | 31 | 304 | (5,127 | ) | 76,105 | 315,043 | 391,416 | ||||||||||||
| (1) | Includes close family members of the<br> key management personnel. | |||||||||||||||||||||
| --- | --- |
Transactions generated by the Bank with related parties for transactions arranged within the course of the usual and ordinary course of business were performed in normal market conditions, both as to interest rates and prices and as to the required guarantees.
The Bank does not have loans granted to Directors and other key management personnel secured with shares.
Total remunerations received as salary and bonus by the key management personnel as of March 31, 2023 and 2022, totaled 211,381 and 195,723, respectively.
In addition, fees received by the Directors as of March 31, 2023 and 2022 amounted to 881,256 and 959,860, respectively,
Additionally, the composition of the Board of Directors and key management personnel is as follows:
| Composition | 03/31/2023 | 12/31/2022 | ||
|---|---|---|---|---|
| Board of Directors | 11 | 12 | ||
| Senior managers of the key management personnel | 11 | 11 | ||
| Total | 22 | 23 | ||
| 14. | DEPOSITS | |||
| --- | --- |
The composition of deposits as of March 31, 2023 and December 31, 2022 is as follows:
| Composition | 03/31/2023 | 12/31/2022 | ||
|---|---|---|---|---|
| Non-financial Public Sector | 111,059,915 | 133,847,469 | ||
| Financial sector | 1,910,914 | 2,012,780 | ||
| Non-financial Private Sector and Foreign Residents | 1,340,160,403 | 1,431,918,528 | ||
| Checking accounts | 155,003,324 | 182,196,753 | ||
| Saving accounts | 425,442,588 | 514,086,399 | ||
| Time deposits | 738,773,530 | 691,929,106 | ||
| Investment accounts | 1,746,973 | 24,936,192 | ||
| Other | 19,193,988 | 18,770,078 | ||
| Total | 1,453,131,232 | 1,567,778,777 |
| - 95 - |
| --- |
NOTES TO THE CONDENSED SEPARATE INTERIM FINANCIALSTATEMENTS
AS OF MARCH 31, 2023
(Translation of Financial Statements originally issued in Spanish – See Note 42)
(Figures stated in thousands of pesos in constant currency)
| 15. | OTHER FINANCIAL LIABILITIES |
|---|
The composition of other financial liabilities as of March 31, 2023 and December 31, 2022 is as follows:
| Composition | 03/31/2023 | 12/31/2022 | ||
|---|---|---|---|---|
| Credit and debit card settlement - due to merchants | 76,292,074 | 89,487,253 | ||
| Amounts payable for spot purchases of foreign currency pending<br> settlement | 20,985,949 | 19,538,557 | ||
| Payment orders pending to foreign exchange settlement | 6,110,304 | 6,283,091 | ||
| Collections and other transactions on account and behalf of<br> others | 4,528,706 | 3,415,605 | ||
| Finance leases liabilities | 2,765,077 | 2,380,206 | ||
| Amounts payable for spot purchases of government securities<br> pending settlement | 983,717 | 11,906,025 | ||
| Other | 6,390,138 | 6,866,690 | ||
| Total | 118,055,965 | 139,877,427 | ||
| 16. | PROVISIONS | |||
| --- | --- |
This item includes the amounts estimated to face a liability of probable occurrence, which if occurring, would originate a loss for the Bank.
Exhibit J “Changes in Provisions” presents the changes in provisions as of March 31, 2023 and December 31, 2022.
The expected terms to settle these obligations are as follows:
| 03/31/2023 | ||||||||
|---|---|---|---|---|---|---|---|---|
| Composition | Within 12 months | Over 12 months | 03/31/2023 | 12/31/2022 | ||||
| For administrative, disciplinary<br> and criminal penalties | 500 | 500 | 609 | |||||
| Letters of credits, guarantees and other<br> commitments (1) | 805,059 | 805,059 | 835,722 | |||||
| Commercial claims in progress (2) | 442,804 | 190,198 | 633,002 | 602,100 | ||||
| Labor lawsuits | 331,098 | 94,614 | 425,712 | 324,254 | ||||
| Pension funds - reimbursement | 294,663 | 254,934 | 549,597 | 631,170 | ||||
| Other | 11,861 | 723,974 | 735,835 | 896,370 | ||||
| Total | 1,885,485 | 1,264,220 | 3,149,705 | 3,290,225 | ||||
| (1) | These amounts correspond to the ECL<br> calculated for contingent transactions, which are mentioned in note 4. | |||||||
| --- | --- | |||||||
| (2) | See also note 37.2. | |||||||
| --- | --- |
| - 96 - |
| --- |
NOTES TO THE CONDENSED SEPARATE INTERIM FINANCIALSTATEMENTS
AS OF MARCH 31, 2023
(Translation of Financial Statements originally issued in Spanish – See Note 42)
(Figures stated in thousands of pesos in constant currency)
| 17. | OTHER NON-FINANCIAL LIABILITIES |
|---|
The composition of other non-financial liabilities as of March 31, 2023 and December 31, 2022 is as follows:
| Composition | 03/31/2023 | 12/31/2022 | ||
|---|---|---|---|---|
| Withholdings | 16,949,911 | 19,178,833 | ||
| Salaries, bonuses and payroll taxes payables | 12,515,814 | 12,975,980 | ||
| Taxes payables | 9,123,373 | 9,387,288 | ||
| Miscellaneous payables | 3,934,741 | 3,397,316 | ||
| Retirement pension payment orders pending settlement | 1,140,458 | 1,369,362 | ||
| Fees payable | 100,065 | 681,859 | ||
| Other | 1,063,353 | 1,789,085 | ||
| Total | 44,827,715 | 48,779,723 | ||
| 18. | ANALYSIS OF FINANCIAL ASSETS TO BE RECOVERED AND FINANCIAL LIABILITIES TO BE SETTLED | |||
| --- | --- |
The following tables show the analysis of financial assets and liabilities the Bank expects to recover and settle as of March 31, 2023 and December 31, 2022:
| 03/31/2023 | Without<br> due<br><br> date | Total up<br> to 12<br><br> months | Total over<br> 12<br><br> months | |||
|---|---|---|---|---|---|---|
| Assets | ||||||
| Cash and deposits in banks | 287,624,265 | |||||
| Debt securities at fair value through profit or loss | 266,220,702 | 1,877,299 | ||||
| Derivative financial instruments | 455 | |||||
| Repo transactions | 39,118,052 | |||||
| Other financial assets | 10,944,641 | 27,530,459 | 13,964,032 | |||
| Loans and other financing (1) | 1,531,184 | 501,389,337 | 194,112,677 | |||
| Other debt securities | 718,627,456 | 81,706,320 | ||||
| Financial assets delivered as guarantee | 31,696,623 | 5,111,437 | ||||
| Equity instruments at fair value through<br> profit or loss | 908,745 | |||||
| Total assets | 332,705,458 | 1,557,997,898 | 291,660,328 | |||
| Liabilities | ||||||
| Deposits | 637,307,557 | 815,791,634 | 32,041 | |||
| Derivative financial instruments | 100,398 | |||||
| Repo transactions | 4,486,445 | |||||
| Other financial liabilities | 114,424,967 | 3,630,998 | ||||
| Financing received from the BCRA and other financial institutions | 4,506,639 | |||||
| Issued corporate bonds | 8,186 | 3,538,706 | ||||
| Subordinated corporate bonds | 3,003,941 | 83,595,320 | ||||
| Total liabilities | 637,307,557 | 942,322,210 | 90,797,065 | |||
| (1) | The amounts included in “without due date” are related to<br> the non-performing portfolio. | |||||
| --- | --- |
| - 97 - |
| --- |
NOTES TO THE CONDENSED SEPARATE INTERIM FINANCIALSTATEMENTS
AS OF MARCH 31, 2023
(Translation of Financial Statements originally issued in Spanish – See Note 42)
(Figures stated in thousands of pesos in constant currency)
| 12/31/2022 | Without<br> due<br><br> date | Total up<br> to 12<br><br> months | Total over<br> 12<br><br> months | |||
|---|---|---|---|---|---|---|
| Assets | ||||||
| Cash and deposits in banks | 292,172,683 | |||||
| Debt securities at fair value through profit or loss | 223,291,971 | 16,200,494 | ||||
| Derivative financial instruments | 52,222 | |||||
| Repo transactions | 75,388,016 | |||||
| Other financial assets | 12,183,668 | 26,165,869 | 14,312,981 | |||
| Loans and other financing (1) | 1,772,911 | 522,151,494 | 204,492,694 | |||
| Other debt securities | 825,514,535 | 62,475,248 | ||||
| Financial assets delivered as guarantee | 36,636,596 | |||||
| Equity instruments at fair value through<br> profit or loss | 859,357 | |||||
| Total assets | 343,625,215 | 1,672,564,107 | 297,481,417 | |||
| Liabilities | ||||||
| Deposits | 771,088,220 | 796,665,385 | 25,172 | |||
| Derivative financial instruments | 2,886 | |||||
| Other financial liabilities | 136,024,738 | 3,852,689 | ||||
| Financing received from the BCRA and other financial institutions | 2,981,069 | |||||
| Issued corporate bonds | 8,737 | 3,647,785 | ||||
| Subordinated corporate bonds | 1,732,332 | 86,248,981 | ||||
| Total liabilities | 771,088,220 | 937,415,147 | 93,774,627 | |||
| (1) | The amounts included in “without due date” are related<br> to the non-performing portfolio. | |||||
| --- | --- | |||||
| 19. | DISCLOSURES BY OPERATING SEGMENT | |||||
| --- | --- |
The Bank has an approach of its banking business that is described in note 21 to the condensed consolidated interim Financial Statements.
| 20. | INCOME TAX |
|---|---|
| a) | Inflation adjustment and tax rate on<br> income tax |
| --- | --- |
Note 22 to the condensed consolidated interim Financial Statements are detailed the legal aspects of the inflation adjustment on income tax and the corporate tax rate on tax rate.
| b) | The main items of income tax expense<br> in the condensed consolidated interim financial statements are as follows: | |||||
|---|---|---|---|---|---|---|
| Description | 03/31/2023 | 03/31/2022 | ||||
| --- | --- | --- | --- | --- | --- | --- |
| Current income tax expense | 4,151,917 | 604,119 | ||||
| Loss for deferred income taxes | 316,316 | 1,914,227 | ||||
| Monetary effects | 339,877 | 160,154 | ||||
| Income tax loss recorded in the statement of income | 4,808,110 | 2,678,500 | ||||
| Income tax gain recorded in other comprehensive<br> income | (353,031 | ) | (342,081 | ) | ||
| Total | 4,455,079 | 2,336,419 |
| - 98 - |
| --- |
NOTES TO THE CONDENSED SEPARATE INTERIM FINANCIALSTATEMENTS
AS OF MARCH 31, 2023
(Translation of Financial Statements originally issued in Spanish – See Note 42)
(Figures stated in thousands of pesos in constant currency)
Fiscal years 2019 and 2020
As decided by the Board of Directors in the meeting held on May 11, 2020, considering certain case law on the matter assessed by its legal counsel and tax advisors, on May 26, 2020, the Bank filed with the Administración Federal de Ingresos Públicos (AFIP, for its acronym in Spanish) its annual income tax return considering the total effect of the inflation adjustment on income tax (see section a) iv) of note 22 to the condensed consolidated interim Financial Statements). As a result, the current income tax determined by Banco Macro SA for fiscal year 2019 amounted to 7,002,124 (not restated). The same criterion was applied to determine the annual income tax report for 2020, which generated accrued income tax for Banco Macro SA for such fiscal year that amounted to 9,933,210 (not restated).
In addition, on July 23, 2021, the Bank filed a reimbursement action with the AFIP requesting that 254,305 (not restated) paid as income tax for the 2020 tax period be reimbursed.
As to the tax periods mentioned in previous paragraphs, on November 1, 2021, the AFIP notified the beginning of an income tax audit, which is in progress.
Along with the filings mentioned in the first paragraph of this section, on December 28, 2021, the Bank filed petitions for declaratory judgment with the Federal Administrative Contentious Court for the periods under analysis. The file 22274/2021, for the fiscal year 2019, is in process in Court No. 12 and the file 22278/2021, for the fiscal year 2020, is in process in Court No. 1.
Fiscal year 2021
On October 17, 2022, the Bank filed a reimbursement action with the AFIP requesting that 382,189 paid as income tax for the 2021 tax period be reimbursed.
On January 3, 2023, the AFIP notified the beginning of an income tax audit related to the abovementioned fiscal year, which is in progress.
Reimbursement actions – Fiscal years 2013 to 2017 and 2018
On October 24, 2019, Banco Macro SA filed with the AFIP-DGI (Argentine tax authorities) two reimbursement actions under the terms established by the first paragraph of section 81, Law No. 11683 requesting the reimbursement of 4,782,766 and 5,015,451 (not restated amounts) paid to tax authorities as income tax during tax periods 2013 through 2017 and 2018, respectively, arising from the impossibility to apply the adjustment for inflation and other adjustment mechanisms set forth by Income Tax Law (prior to the amendments introduced by Laws No. 27430 and 27468 for periods 2013 through 2017, and as revised in 2019 and amended for the 2018 tax period), plus the related compensatory interest (SIGEA [case and file management system] files No. 19144-14224/2019 and 19144-14222/2019). Since tax authorities have not yet issued a resolution with respect to the abovementioned claims, on August 7, 2020, the Bank filed both reimbursement requests under the terms of section 81, Law No. 11683 with the Federal Contentious and Administrative Trial Courts, which are pending in Courts No. 8 and 2 of such jurisdiction, respectively (cases No. 11285/2020 and 11296/2020). Currently, in connection with the file for the fiscal year 2018, the evidence stage is closed and the process for allegation was delivered.
In connection with the tax periods mentioned in the previous paragraph, on December 19, 2019, the AFIP notified the beginning of the income tax audit for the 2018 tax period, and on May 3, 2021, it notified the beginning of the income tax audit for periods 2013 through 2017, On October 4, 2021, the AFIP ended the audit for periods 2013 through 2017 as the Bank had exercised in due time its right to resort to justice, and that the admission of reimbursement is subject to a court decision.
| - 99 - |
| --- |
NOTES TO THE CONDENSED SEPARATE INTERIM FINANCIALSTATEMENTS
AS OF MARCH 31, 2023
(Translation of Financial Statements originally issued in Spanish – See Note 42)
(Figures stated in thousands of pesos in constant currency)
| 21. | COMMISSIONS INCOME | |||
|---|---|---|---|---|
| Composition | 03/31/2023 | 03/31/2022 | ||
| --- | --- | --- | --- | --- |
| Performance obligations satisfied at a point in time | ||||
| Commissions related to obligations | 13,659,014 | 12,824,829 | ||
| Commissions related to credit cards | 7,973,631 | 7,583,910 | ||
| Commissions related to insurance | 1,309,301 | 1,334,386 | ||
| Commissions related to trading and foreign exchange transactions | 513,177 | 495,325 | ||
| Commissions related to securities value | 203,098 | 195,007 | ||
| Commissions related to loans and other financing | 59,863 | 87,412 | ||
| Commissions related to financial guarantees granted | 1,800 | 1,149 | ||
| Performance obligations satisfied over certain time period | ||||
| Commissions related to credit cards | 107,867 | 197,230 | ||
| Commissions related to trading and foreign exchange transactions | 20,578 | 18,047 | ||
| Commissions related to loans and other financing | 18,721 | 103 | ||
| Commissions related to obligations | 464 | 468 | ||
| Total | 23,867,514 | 22,737,866 | ||
| 22. | DIFFERENCES IN QUOTED PRICES OF GOLD AND FOREIGN CURRENCY | |||
| --- | --- | |||
| Composition | 03/31/2023 | 03/31/2022 | ||
| --- | --- | --- | --- | --- |
| Translation of foreign currency assets and liabilities<br> into pesos | 36,128,105 | 5,877,548 | ||
| Income from foreign currency exchange | 219,302 | 511,029 | ||
| Total | 36,347,407 | 6,388,577 | ||
| 23. | OTHER OPERATING INCOME | |||
| --- | --- | |||
| Composition | 03/31/2023 | 03/31/2022 | ||
| --- | --- | --- | --- | --- |
| Adjustments and interest from other receivables | 1,342,180 | 518,893 | ||
| Services | 1,179,342 | 1,249,236 | ||
| Adjustments from other receivables with CER clauses | 548,863 | 249,100 | ||
| Other receivables for financial intermediation | 126,864 | 413,698 | ||
| Sale of investment in properties and other non-financial assets | 26,320 | |||
| Other | 931,130 | 2,708,541 | ||
| Total | 4,128,379 | 5,165,788 |
| - 100 - |
| --- |
NOTES TO THE CONDENSED SEPARATE INTERIM FINANCIALSTATEMENTS
AS OF MARCH 31, 2023
(Translation of Financial Statements originally issued in Spanish – See Note 42)
(Figures stated in thousands of pesos in constant currency)
| 24. | EMPLOYEE BENEFITS | |||
|---|---|---|---|---|
| Composition | 03/31/2023 | 03/31/2022 | ||
| --- | --- | --- | --- | --- |
| Remunerations | 15,519,186 | 13,417,342 | ||
| Payroll taxes | 3,911,144 | 3,065,257 | ||
| Compensations and bonuses to employees | 2,545,991 | 2,353,299 | ||
| Employee services | 785,426 | 772,825 | ||
| Total | 22,761,747 | 19,608,723 | ||
| 25. | ADMINISTRATIVE EXPENSES | |||
| --- | --- | |||
| Composition | 03/31/2023 | 03/31/2022 | ||
| --- | --- | --- | --- | --- |
| Taxes | 1,915,758 | 1,736,356 | ||
| Maintenance, conservation and repair expenses | 1,774,779 | 1,787,609 | ||
| Armored truck, documentation and events | 1,622,260 | 1,585,690 | ||
| Other fees | 1,191,449 | 995,676 | ||
| Security services | 1,114,330 | 1,168,002 | ||
| Electricity and communications | 1,063,225 | 1,109,991 | ||
| Software | 780,683 | 862,179 | ||
| Advertising and publicity | 455,154 | 512,132 | ||
| Fees to directors and syndics | 398,159 | 516,171 | ||
| Representation, travel and transportation expenses | 213,030 | 128,795 | ||
| Stationery and office supplies | 103,799 | 77,659 | ||
| Insurance | 94,792 | 133,461 | ||
| Hired administrative services | 83,414 | 77,989 | ||
| Leases | 45,736 | 57,094 | ||
| Other | 317,651 | 279,552 | ||
| Total | 11,174,219 | 11,028,356 | ||
| 26. | OTHER OPERATING EXPENSES | |||
| --- | --- | |||
| Composition | 03/31/2023 | 03/31/2022 | ||
| --- | --- | --- | --- | --- |
| Turnover tax | 13,812,100 | 11,219,508 | ||
| From credit cards | 5,149,418 | 4,886,225 | ||
| Charges for other provisions | 656,051 | 868,234 | ||
| Deposit guarantee fund contributions | 606,291 | 561,131 | ||
| Insurance claims | 229,513 | 109,893 | ||
| Donations | 206,351 | 255,788 | ||
| Other adjustments and interests for miscellaneous obligations | 101,768 | 242,195 | ||
| Taxes | 46,173 | 144,843 | ||
| Loss from sale or impairment of investment in properties and<br> other non-financial assets | 45,101 | |||
| Other | 2,387,070 | 2,379,666 | ||
| Total | 23,239,836 | 20,667,483 |
| - 101 - |
| --- |
NOTES TO THE CONDENSED SEPARATE INTERIM FINANCIALSTATEMENTS
AS OF MARCH 31, 2023
(Translation of Financial Statements originally issued in Spanish – See Note 42)
(Figures stated in thousands of pesos in constant currency)
| 27. | ADDITIONAL DISCLOSURES IN THE STATEMENT OF CASH FLOWS |
|---|
The statement of cash flows presents the changes in cash and cash equivalents derived from operating activities, investing activities and financing activities during the period. For the preparation of the statement of cash flows the Bank adopted the indirect method for operating activities and the direct method for investment activities and financing activities.
The Bank considers as “Cash and cash equivalents” the item Cash and Deposits in Banks and those financial assets that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value.
For the preparation of the statement of cash flows the Bank considered the following:
| - | Operating activities: the normal revenue-producing<br> activities of the Bank as well as other activities that cannot qualify as investing or financing<br> activities. |
|---|---|
| - | Investing activities: the acquisition,<br> sale and disposal by other means of long-term assets and other investments not included in<br> cash and cash equivalents. |
| --- | --- |
| - | Financing activities: activities that<br> result in changes in the size and composition of the shareholders´ equity and liabilities<br> of the Bank and that are not part of the operating or investing activities. |
| --- | --- |
The table below presents the reconciliation between the item “Cash and cash equivalents” in the statement of cash flows and the relevant accounting items of the statement of financial position:
| Reconciliation | 03/31/2023 | 12/31/2022 | 03/31/2022 | 12/31/2021 | ||||
|---|---|---|---|---|---|---|---|---|
| Cash and deposits in banks | 287,624,265 | 292,172,683 | 347,345,578 | 397,965,970 | ||||
| Debt Securities at fair value through profit or loss | 180,776 | 11,524 | ||||||
| Other debt securities | 643,899,439 | 598,340,791 | 430,941,373 | 315,308,663 | ||||
| Total | 931,523,704 | 890,513,474 | 778,467,727 | 713,286,157 | ||||
| 28. | CAPITAL STOCK | |||||||
| --- | --- |
The Bank’s subscribed and paid-in capital from December 31, 2020 to March 31, 2023, amounted to 639,413. See also Exhibit K.
| 29. | DEPOSIT GUARANTEE INSURANCE |
|---|
Note 32 to the condensed consolidated interim Financial Statements describes the Deposit Guarantee Insurance System and the scope thereof.
Banco Macro SA holds a 7.6859% interest in the capital stock according to the percentages disclosed by BCRA Communiqué “B” 12503 issued on March 22, 2023.
| 30. | RESTRICTED ASSETS |
|---|
As of March 31, 2023 and December 31, 2022 the following Bank’s assets are restricted:
| - 102 - |
| --- |
NOTES TO THECONDENSED SEPARATE INTERIM FINANCIAL STATEMENTS
AS OF MARCH 31,2023
(Translation of Financial Statements originally issued in Spanish – See Note 42)
(Figures stated in thousands of pesos in constant currency)
| Composition | 03/31/2023 | 12/31/2022 | |||
|---|---|---|---|---|---|
| Debt securities<br> at fair value through profit or loss and other debt securities | |||||
| · | Federal government<br> bonds in dual currency at discount - Maturity: 07/21/2023 as of March 31, 2023 and Government Treasury Bonds in pesos adjusted<br> by CER 1.40% - Maturity 03/27/2023, as of December 31, 2022, for the contribution to the Guarantee Fund II in BYMA according<br> to section 45, Law 26831, and supplementary regulations established by CNV standards (NT 2013, as amended). | 1,186,478 | 18,127 | ||
| · | Discount bonds in pesos regulated<br> by Argentine legislation, maturing in 2033 for the minimum statutory guarantee account required for Agents to act in the new categories<br> contemplated under Resolution No. 622/2013, as amended, of the CNV. | 109,535 | 113,036 | ||
| · | Discount bonds in pesos regulated<br> by Argentine legislation, maturing in 2033, as of March 31, 2023 and Federal Government Treasury Bonds in pesos adjusted by<br> CER 1.40% - Maturity 03/27/2023 as of December 31, 2022, securing the sectoral Credit Program of the Province of San Juan, production<br> investment financing fund. | 37,388 | 101,426 | ||
| · | Discount<br> bonds in pesos regulated by Argentine legislation, maturing in 2033, as of March 31, 2023 and Federal Government Treasury Bonds<br> in pesos adjusted by CER 1.40% - Maturity 03/27/2023 as of December 31, 2022, securing the regional economies Competitiveness<br> Program – IDB loan No. 3174/OC-AR. | 3,944 | 41,002 | ||
| Subtotal<br> debt securities at fair value through profit or loss and other debt securities | 1,337,345 | 273,591 | |||
| Other financial<br> assets | |||||
| · | Interests derived<br> from contributions made as protector partner (1). | 2,420,625 | 2,938,082 | ||
| · | Sundry debtors – attachment<br> within the scope of the claim filed by the DGR against the CABA for turnover tax differences. | 827 | 1,007 | ||
| Subtotal Other financial<br> assets | 2,421,452 | 2,939,089 | |||
| Financial assets<br> delivered as a guarantee | |||||
| · | Special guarantee<br> checking accounts opened in the BCRA for transactions related to the electronic clearing houses and similar entities. | 25,642,754 | 30,219,504 | ||
| · | For securities forward contracts. | 5,111,437 | |||
| · | Guarantee deposits related<br> to credit and debit card transactions. | 4,578,586 | 4,922,325 | ||
| · | Other guarantee deposits. | 1,475,283 | 1,494,767 | ||
| Subtotal Financial assets<br> delivered as guarantee | 36,808,060 | 36,636,596 | |||
| Other non-financial<br> assets | |||||
| · | Real property<br> related to a call option sold. | 2,988,435 | 2,989,930 | ||
| Subtotal other non-financial<br> assets | 2,988,435 | 2,989,930 | |||
| Total | 43,555,292 | 42,839,206 | |||
| (1) | As<br> of March 31, 2023 and December 31, 2022 it is related to the risk fund Fintech<br> SGR and Garantizar SGR, In order to keep tax benefits related to these contributions,<br> they must be maintained between two and three years from the date they were made. | ||||
| --- | --- |
| - 103 - |
| --- |
NOTES TO THECONDENSED SEPARATE INTERIM FINANCIAL STATEMENTS
AS OF MARCH 31,2023
(Translation of Financial Statements originally issued in Spanish – See Note 42)
(Figures stated in thousands of pesos in constant currency)
| 31. | TRUST ACTIVITIES |
|---|
Note 34 to the condensed consolidated interim Financial Statements describes the different trust agreements according to the business purpose sought by the Bank, which may be summarized as follows:
| 31.1 | Financial<br> trusts for investment purposes |
|---|
As of March 31, 2023 and December 31, 2022, the debt securities with investment purposes and certificate of participation in financial trusts amounted to 590,891 and 1,157,552, respectively.
According to the latest accounting information available as of the date of issuance of these condensed separate interim Financial Statements, the corpus assets of the trusts exceed the carrying amount in the related proportions.
| 31.2 | Trusts created using financial<br>assets transferred by the Bank (Securitization) |
|---|
As of March 31, 2023 and December 31, 2022, considering the latest available accounting information as of the date of issuance of these condensed separate interim Financial Statements, the assets managed through Macro Fiducia SAU of this type of trusts amounted to 1,953 and 14,218, respectively.
| 31.3 | Trusts guaranteeing loans granted<br>by the Bank |
|---|
As of March 31, 2023 and December 31, 2022, considering the latest available accounting information as of the date of issuance of these condensed separate interim Financial Statements, the assets managed by the Bank amounted to 2,889,215 and 3,312,662, respectively.
| 31.4 | Trusts<br> in which the Bank acts as Trustee (Management) |
|---|
As of March 31, 2023 and December 31, 2022, considering the latest available accounting information as of the date of issuance of these condensed separate interim Financial Statements, the assets managed by the Bank amounted to 5,057,634 and 4,974,897, respectively.
| 32. | COMPLIANCE WITH CNV REGULATIONS |
|---|
Considering Banco Macro SA’s current operations, and according to the different categories of agents established by CNV rules (as per General Resolution 622/2013, as amended), the Bank is registered with this agency as Agent for the Custody of Collective Investment Products of Mutual Funds (AC PIC FCI, for their acronyms in Spanish) – Comprehensive Depositary Company, clearing and settlement agent and trading agent (ALyC and AN – comprehensive, for their acronyms in Spanish) and is registered in the “List of Authorized companies to guarantee capital market instruments”, as described in note 35.1.1 to the condensed consolidated interim Financial Statements. Note 35.3 to the mentioned Financial Statements describes the number of shares subscribed by third parties and the assets held by the Bank in its capacity as depositary company.
Additionally, the Bank’s shareholders’ equity as of March 31, 2023 stated in Units of Purchasing Power (UVA, for its acronym in Spanish) amounted to 2,898,708,425 and exceeds the minimum amount required by such regulation for the different categories of agents in which the Bank is registered, amounting to 470,350 UVAs as of that date, and the minimum required statutory guarantee account of 235,175 UVAs, which the Bank paid-in with government securities as described in note 30 and the cash deposits in BCRA accounts 000285 and 80285 belonging to the Bank.
In addition, note 35.2 to the condensed consolidated interim Financial Statements presents the general policy of documents in custody, describing which information has been disclosed and delivered to third parties for custody.
| 33. | ACCOUNTING ITEMS THAT IDENTIFY THE COMPLIANCE WITH MINIMUM CASH REQUIREMENTS |
|---|
The items recognized by the Bank to constitute the minimum cash requirement effective for March 2023 are described in note 36 to the condensed consolidated interim Financial Statements.
| - 104 - |
| --- |
NOTES TO THECONDENSED SEPARATE INTERIM FINANCIAL STATEMENTS
AS OF MARCH 31,2023
(Translation of Financial Statements originally issued in Spanish – See Note 42)
(Figures stated in thousands of pesos in constant currency)
| 34. | PENALTIES APPLIED TO THE ENTITY AND SUMMARY PROCEEDINGS INITIATED BY THE BCRA |
|---|
Note 37 to the condensed consolidated interim Financial Statements describes the penalties applied and the summary proceedings filed by the BCRA against the Bank, classified as follows:
| - | Summary<br> proceedings filed by the BCRA. |
|---|---|
| - | Penalties<br> applied by the BCRA. |
| --- | --- |
| - | Penalties<br> applied by the UIF. |
| --- | --- |
| - | Summary<br> proceedings before the CNV and the UIF. |
| --- | --- |
The Bank’s Management and its legal counsel consider no further significant accounting effects, other than those previously mentioned, should be recorded or disclosed.
| 35. | CORPORATE BONDS ISSUANCE |
|---|
The corporate bonds liabilities recorded by the Bank are as follows:
| Corporate Bonds | Original value | Residual face<br><br> value as of<br><br> 03/31/2023 | 03/31/2023 | 12/31/2022 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Subordinated Resettable – Class A | USD | 400,000,000 | USD | 400,000,000 | 86,599,261 | 87,981,313 | ||||
| Non-subordinated – Class E | USD | 17,000,000 | USD | 17,000,000 | 3,546,892 | 3,656,522 | ||||
| Total | 90,146,153 | 91,637,835 |
Note 38 to the condensed consolidated interim Financial Statements describes liabilities for corporate bonds recognized by the Bank.
| 36. | OFF BALANCE SHEET TRANSACTIONS |
|---|
In addition to note 4, the Bank recognizes different off balance sheet transactions, pursuant to the BCRA standards. The composition of the amounts of the main off balance sheet transactions as of March 31, 2023 and December 31, 2022 is as follows:
| Composition | 03/31/2023 | 12/31/2022 | ||
|---|---|---|---|---|
| Custody of government and private securities and other assets held by third parties | 765,920,721 | 754,707,079 | ||
| Preferred and other collaterals received from customers (1) | 218,748,621 | 227,356,941 | ||
| Outstanding checks not yet paid | 26,511,086 | 24,277,255 | ||
| Checks already deposited and pending clearance | 21,465,705 | 20,485,754 | ||
| (1) | Related<br> to collaterals used to secure loans transactions and other financing, under the applicable<br> rules in force on this matter. | |||
| --- | --- | |||
| 37. | TAX AND OTHER CLAIMS | |||
| --- | --- |
37.1 Tax claims
Note 40.1 to the condensed consolidated interim Financial Statements describes the most relevant claims pending resolution and filed by the AFIP and the tax authorities of the relevant jurisdictions.
The Bank’s Management and its legal counsel consider no further significant accounting effects could arise from the final outcome of the abovementioned proceedings other than those disclosed in these condensed separate interim Financial Statements.
| - 105 - |
| --- |
NOTES TO THECONDENSED SEPARATE INTERIM FINANCIAL STATEMENTS
AS OF MARCH 31,2023
(Translation of Financial Statements originally issued in Spanish – See Note 42)
(Figures stated in thousands of pesos in constant currency)
37.2. Other claims
Note 40.2 to the condensed consolidated interim Financial Statements describes the most relevant claims pending resolution and filed by the different consumers’ associations.
The Bank’s Management and its legal counsel consider no further significant accounting effects could arise from the final outcome of the above mentioned proceedings other than those disclosed in these condensed separate interim Financial Statements.
| 38. | RESTRICTION ON DIVIDENDS DISTRIBUTION |
|---|
Note 41 to the condensed consolidated interim Financial Statements describes the main legal provisions regulating the restriction on profit distribution and the decisions made by the Shareholders’ Meeting held on April 25, 2023.
| 39. | CAPITAL MANAGEMENT, CORPORATE GOVERNANCE TRANSPARENCY POLICY AND RISK MANAGEMENT |
|---|
Note 42 to the condensed consolidated interim Financial Statements describes the main guidelines of the Bank as to capital management, corporate governance transparency policy and risk management.
| 40. | CHANGES IN THE ARGENTINE MACROECONOMIC ENVIRONMENT AND FINANCIAL AND CAPITAL MARKET |
|---|
The international and domestic macroeconomics environments in which the Bank operates and its impacts are described in note 43 to the condensed consolidated interim Financial Statements.
| 41. | EVENTS AFTER REPORTING PERIOD |
|---|
No other significant events occurred between the end of the period and the issuance of these condensed separate interim Financial Statements that may materially affect the financial position or the profit and loss of the period, not disclosed in these condensed separate interim Financial Statements.
| 42. | ACCOUNTING PRINCIPLES – EXPLANATION ADDED FOR TRANSLATION INTO ENGLISH |
|---|
These condensed separate interim Financial Statements are presented in accordance with the accounting framework established by the BCRA, as mentioned in note 3. These accounting standards may not conform to accounting principles generally accepted in other countries.
| - 106 - | Carlos A. Giovanelli<br> Vice Chairperson |
| --- | --- |
EXHIBIT A
DETAIL OF GOVERNMENT AND PRIVATE SECURITIES
AS OF MARCH 31, 2023 AND DECEMBER 31,2022
(Translation of the Financial Statements originally issued in Spanish – See Note 42)
(Figures stated in thousands of pesos in constant currency as of March 31, 2023)
| Holdings | Position | ||||||||
|---|---|---|---|---|---|---|---|---|---|
| 03/31/2023 | 12/31/2022 | 03/31/2023 | |||||||
| Fair | Position | ||||||||
| Fair | value | Book | Book | without | Final | ||||
| Name | Identification | value | level | amounts | amounts | options | Options | position | |
| DEBT SECURITIES AT FAIR VALUE THROUGH PROFIT OR LOSS | |||||||||
| - Local | |||||||||
| Government securities | |||||||||
| Federal government bonds in dual currency at discount - Maturity: 07-21-2023 | 9146 | 1 | 69,171,856 | 71,389,533 | 71,918,067 | 71,918,067 | |||
| Federal government treasury bonds linked to dolar - Maturity: 04-28-2023 | 5928 | 1 | 68,861,445 | 69,373,554 | 68,861,445 | 68,861,445 | |||
| Federal government bonds in dual currency at discount - Maturity: 02-28-2024 | 9156 | 1 | 67,428,869 | 13,970,296 | 67,428,869 | (52,706,104 | ) | 14,722,765 | |
| Federal government bonds in dual currency at discount - Maturity: 09-29-2023 | 9147 | 1 | 26,669,829 | 26,505,563 | 26,669,829 | 26,669,829 | |||
| Federal government bonds in dual currency at discount - Maturity: 06-30-2023 | 9145 | 1 | 26,405,460 | 25,004,706 | 26,405,460 | 26,405,460 | |||
| Letters of National Estate at discount in pesos - Maturity: 05-31-2023 | 9171 | 1 | 2,849,091 | 2,849,091 | 2,849,091 | ||||
| Federal government treasury bonds linked to dolar - Maturity: 07-31-2023 | 9143 | 1 | 2,505,543 | 3,519 | 2,505,543 | 2,505,543 | |||
| Federal government treasury bonds in pesos adjusted by CER - Maturity: 11-09-2026 | 5925 | 1 | 1,525,406 | 1,534,206 | 1,525,406 | 1,525,406 | |||
| Letters of National Estate in pesos at discount - Maturity: 04-28-2023 | 9142 | 1 | 882,676 | 22,268 | 882,676 | 882,676 | |||
| Federal government treasury bonds in pesos adjusted by CER - Maturity: 08-13-2023 | 5497 | 1 | 600,388 | 880,853 | 600,388 | 600,388 | |||
| Other | 540,849 | 29,551,854 | 540,849 | 540,849 | |||||
| Subtotal local government securities (1) | 267,441,412 | 238,236,352 | 270,187,623 | (52,706,104 | ) | 217,481,519 | |||
| Private securities | |||||||||
| Corporate Bonds Tarjeta Naranja S.A. Class 53 Series 01- Maturity: 04-05-2023 | 56056 | 3 | 444,326 | 529,144 | 444,326 | 444,326 | |||
| Debt Securities in Financial Trusts Confibono | 80049 | 3 | 155,071 | 508,143 | 155,071 | 155,071 | |||
| Debt Securities in Financial Trusts Accicom Personal Loans | 80048 | 3 | 52,545 | 52,545 | 52,545 | ||||
| Securities of companies of public services | 80039 | 3 | 4,647 | 4,950 | 4,647 | 4,647 | |||
| Debt Securities in Financial Trusts Secubono | 80051 | 213,876 | |||||||
| Subtotal local private securities | 656,589 | 1,256,113 | 656,589 | 656,589 | |||||
| TOTAL DEBT SECURITIES AT FAIR VALUE THROUGH PROFIT OR LOSS | 268,098,001 | 239,492,465 | 270,844,212 | (52,706,104 | ) | 218,138,108 |
| - 107 - | Carlos A. Giovanelli<br> Vice Chairperson |
| --- | --- |
EXHIBIT A
(continued)
DETAIL OF GOVERNMENT AND PRIVATE SECURITIES
AS OF MARCH 31, 2023 AND DECEMBER 31,2022
(Translation of the Financial Statements originally issued in Spanish – See Note 42)
(Figures stated in thousands of pesos in constant currency as of March 31, 2023)
| Holdings | Position | ||||||||
|---|---|---|---|---|---|---|---|---|---|
| 03/31/2023 | 12/31/2022 | 03/31/2023 | |||||||
| Name | Identification | Fair<br><br> Value | Fair<br><br> value<br> level | Book<br><br> amounts | Book<br><br> amounts | Position<br><br> without<br> options | Options | Final<br> <br> position | |
| OTHER DEBT SECURITIES | |||||||||
| Measured at fair value through<br> other comprehensive income | |||||||||
| - Local | |||||||||
| Government<br> securities | |||||||||
| Letters<br> of National treasury in pesos to discount - Maturity: 04-28-2023 | 9142 | 1 | 23,231,918 | 1,712,394 | 23,231,918 | 23,231,918 | |||
| Letters<br> of National treasury in pesos to discount - Maturity: 05-31-2023 | 9171 | 1 | 20,290,364 | 20,290,364 | 20,290,364 | ||||
| Bonds<br> of treasury of federal government in pesos adjusted by CER 4.25% - Maturity: 10-14-2024 | 9179 | 1 | 13,244,581 | 13,244,581 | (13,244,581 | ) | |||
| Bonds<br> of treasury of federal government in pesos adjusted by CER 4.25% - Maturity: 02-14-2025 | 9180 | 1 | 9,687,829 | 9,687,829 | (9,687,829 | ) | |||
| Bonds<br> of treasury of federal government in pesos adjusted by CER - Maturity: 08-13-2023 | 5497 | 1 | 8,655,897 | 10,715,248 | 8,655,897 | 10,447,877 | 10,447,877 | ||
| Bonds<br> of treasury of federal government in pesos adjusted by CER - Maturity: 07-26-2024 | 5405 | 1 | 34,601 | 505,178 | 34,601 | 34,601 | |||
| Letters<br> of National Estate in pesos adjusted by CER to discount - Maturity: 04-21-2023 | 9118 | 1 | 10,829 | 11,287 | 10,829 | 10,829 | |||
| Bonds<br> of federal government in dollars Step up - Maturity: 07-09-2030 | 5921 | 1 | 4,976 | 4,821 | 4,976 | 4,976 | |||
| Letters<br> of National Estate in pesos adjusted by CER to discount - Maturity: 02-17-2023 | 9111 | 54,705,082 | |||||||
| Bonds<br> of treasury of federal government in pesos adjusted by CER - Maturity: 03-25-2023 | 5492 | 41,956,829 | |||||||
| Other | 48,478,992 | ||||||||
| Subtotal<br> local government securities (1) | 75,160,995 | 158,089,831 | 76,952,975 | (22,932,410 | ) | 54,020,565 | |||
| Total Other debt securities<br> measured at fair value through other comprehensive income | 75,160,995 | 158,089,831 | 76,952,975 | (22,932,410 | ) | 54,020,565 | |||
| Measured at amortized cost | |||||||||
| - Local | |||||||||
| Government<br> securities | |||||||||
| Bonds<br> of treasury of federal government in pesos - Maturity: 05-23-2027 | 9132 | 44,795,287 | 1 | 44,589,247 | 49,264,621 | 44,589,247 | 44,589,247 | ||
| Bonds<br> of treasury of federal government in pesos Badlar x 0.7 - Maturity: 11-23-2027 | 9166 | 12,657,399 | 1 | 12,360,764 | 10,225,961 | 12,360,764 | 12,360,764 | ||
| Discount<br> bonds denominated in pesos at 5.83% - Maturity: 12-31-2033 | 45696 | 715,263 | 1 | 598,074 | 617,194 | 598,074 | 598,074 | ||
| Debt<br> securities of Province of Río Negro in pesos - Maturity: 04-12-2023 | 42534 | 203,385 | 3 | 202,608 | 243,925 | 202,608 | 202,608 | ||
| Treasury<br> bills of Province of Río Negro Series 02 in pesos - Maturity: 06-15-2023 | 42555 | 196,526 | 1 | 197,782 | 242,301 | 197,782 | 197,782 | ||
| Subtotal local government<br> securities | 57,948,475 | 60,594,002 | 57,948,475 | 57,948,475 | |||||
| (1) | During<br> January 2023, in terms of the Article 11 of the Decree No. 331/2022 of the<br> Argentine Ministry of Economy, the Bank decided to enter into a debt voluntary swap. The<br> instruments that entered into that swap are as follows: | ||||||||
| --- | --- | ||||||||
| · | Letters<br>of National Estate in pesos adjusted by CER – Maturity: 02-17-2023 (X17F3) for a nominal amount of 20,900,000,000. | ||||||||
| --- | --- | ||||||||
| · | Letters<br>of National Estate in pesos at discount – Maturity: 02-28-2023 (S28F3) for a nominal amount of 12,893,000,000. | ||||||||
| --- | --- |
During March 2023, the Bank entered into a voluntary debt swap in terms of the Article 11 of the Decree No. 331/2022 of the Argentine Ministry of Economy. The following instruments entered into the swap:
| · | Letters<br>of National treasury in pesos at discount – Maturity: 06-30-2023 (S3OJ3) for a nominal amount of 26,640,975,851. |
|---|---|
| · | Letters<br>of National Estate in pesos adjusted by CER – Maturity: 06-16-2023 (X16J3) for a nominal amount of 4,675,305,395. |
| --- | --- |
| · | Letters<br>of National Estate in pesos adjusted by CER – Maturity: 05-19-2023 (X19Y3) for a nominal amount of 2,905,252,288. |
| --- | --- |
| - 108 - | Carlos A. Giovanelli<br> Vice Chairperson |
| --- | --- |
EXHIBIT A
(continued)
DETAIL OF GOVERNMENT AND PRIVATE SECURITIES
AS OF MARCH 31, 2023 AND DECEMBER 31,2022
(Translation of the Financial Statements originally issued in Spanish – See Note 42)
(Figures stated in thousands of pesos in constant currency as of March 31, 2023)
| Holdings | Position | ||||||||
|---|---|---|---|---|---|---|---|---|---|
| 03/31/2023 | 12/31/2022 | 03/31/2023 | |||||||
| Name | Identification | Fair Value | Fair value level | Book amounts | Book amounts | Position without options | Options | **** | Final position |
| OTHER DEBT SECURITIES (continued) | |||||||||
| Central<br> Bank of Argentina Bills | |||||||||
| Liquidity<br> letters of Central Bank of Argentina in pesos - Maturity: 04-11-2023 | 80026 | 83,152,355 | 1 | 83,318,672 | 83,318,672 | 83,318,672 | |||
| Liquidity<br> letters of Central Bank of Argentina in pesos - Maturity: 04-18-2023 | 80031 | 81,883,050 | 1 | 82,053,204 | 82,053,204 | 82,053,204 | |||
| Liquidity<br> letters of Central Bank of Argentina in pesos - Maturity: 04-20-2023 | 80032 | 81,543,900 | 1 | 81,713,308 | 81,713,308 | 81,713,308 | |||
| Liquidity<br> letters of Central Bank of Argentina in pesos - Maturity: 04-25-2023 | 80033 | 80,702,060 | 1 | 80,869,715 | 80,869,715 | 80,869,715 | |||
| Liquidity<br> letters of Central Bank of Argentina in pesos - Maturity: 04-27-2023 | 80034 | 80,367,899 | 2 | 80,534,721 | 80,534,721 | 80,534,721 | |||
| Liquidity<br> letters of Central Bank of Argentina in pesos - Maturity: 04-13-2023 | 80029 | 79,507,939 | 1 | 79,666,962 | 82,986,419 | 82,986,419 | |||
| Liquidity<br> letters of Central Bank of Argentina in pesos - Maturity: 04-05-2023 | 80025 | 79,012,880 | 1 | 79,362,610 | 79,362,610 | 79,362,610 | |||
| Liquidity<br> letters of Central Bank of Argentina in pesos - Maturity: 04-04-2023 | 80024 | 72,914,720 | 1 | 73,060,790 | 73,060,790 | 73,060,790 | |||
| Internal<br> letters of BCRA exchange rate of reference to rate 0 - Maturity - 10-03-2023 | 80003 | 3,376,656 | 3 | 3,453,925 | 3,563,567 | 3,453,925 | 3,453,925 | ||
| Internal<br> letters of BCRA exchange rate of reference to rate 0 - Maturity - Vto. 10-02-2023 | 80002 | 3,121,234 | 3 | 3,191,960 | 3,293,286 | 3,191,960 | 3,191,960 | ||
| Other | 18,446,679 | 646,073,042 | 18,446,679 | 18,446,679 | |||||
| Subtotal<br> Central Bank of Argentina Bills | 665,672,546 | 652,929,895 | 668,992,003 | 668,992,003 | |||||
| Central<br> Bank of Argentina Notes | |||||||||
| Liquidity<br> notes of Central Bank of Argentina in pesos - Maturity: 01-04-2023 | 80051 | 14,736,836 | |||||||
| Subtotal<br> Central Bank of Argentina Notes | 14,736,836 | ||||||||
| Private<br> securities | |||||||||
| Corporate<br> Bonds Vista Energy Argentina SAU Class 013 - Maturity: 08-08-2024 (2) | 56207 | 1,190,507 | 1 | 615,203 | 635,344 | 615,203 | 615,203 | ||
| Corporate<br> Bonds Vista Oil y Gas Argentina SAU Class 015 - Maturity: 01-20-2025 (2) | 56637 | 1,052,617 | 2 | 567,567 | 586,350 | 567,567 | 567,567 | ||
| Debt Securities<br> in Financial Trusts Secubono Series 223 Class A - Maturity: 09-28-2023 | 56771 | 110,110 | 3 | 99,547 | 99,547 | 99,547 | |||
| Debt Securities<br> in Financial Supercanal II Class A - Maturity: 03-21-2024 | 56949 | 85,360 | 2 | 85,137 | 85,137 | 85,137 | |||
| Debt Securities<br> in Financial Trusts Confibono Series 065 Class A - Maturity: 07-20-2023 | 56428 | 61,987 | 3 | 64,723 | 141,797 | 64,723 | 64,723 | ||
| Corporate<br> Bonds YPF SA Class 043 - Maturity: 10-21-2023 | 50939 | 45,109 | 2 | 41,049 | 42,439 | 41,049 | 41,049 | ||
| Debt Securities<br> in Financial Trusts Secubono Series 221 Class A - Maturity: 07-28-2023 | 56583 | 40,506 | 2 | 39,922 | 110,705 | 39,922 | 39,922 | ||
| Debt Securities<br> in Financial Trusts Red Surcos Series 222 Class A - Maturity: 08-28-2023 | 56660 | 44,206 | 3 | 38,612 | 92,371 | 38,612 | 38,612 | ||
| Debt<br> Securities in Financial Trusts Secubono Series 219 Class A - Maturity: 04-28-2023 | 56366 | 30,213 | |||||||
| Subtotal<br> local private securities | 1,551,760 | 1,639,219 | 1,551,760 | 1,551,760 | |||||
| Total<br> Other debt securities measured at cost amortized | 725,172,781 | 729,899,952 | 728,492,238 | 728,492,238 | |||||
| TOTAL<br> OTHER DEBT SECURITIES | 800,333,776 | 887,989,783 | 805,445,213 | (22,932,410 | ) | 782,512,803 | |||
| (2) | Fair<br> value obtained from the use of quotes in pesos. | ||||||||
| --- | --- |
| - 109 - | Carlos A. Giovanelli<br> Vice Chairperson |
| --- | --- |
EXHIBIT A
(continued)
DETAIL OF GOVERNMENT AND PRIVATE SECURITIES
AS OF MARCH 31, 2023 AND DECEMBER 31,2022
(Translation of the Financial Statements originally issued in Spanish – See Note 42)
(Figures stated in thousands of pesos in constant currency as of March 31, 2023)
| Holdings | Position | ||||||||
|---|---|---|---|---|---|---|---|---|---|
| 03/31/2023 | 12/31/2022 | 03/31/2023 | |||||||
| Name | Identification | Fair Value | Fair value level | Book amounts | Book amounts | Position without options | Options | Final position | |
| Equity Instruments | |||||||||
| Measured at fair value through<br> profit or loss | |||||||||
| - Local | |||||||||
| Mercado<br> Abierto Electrónico SA | 80040 | 3 | 649,014 | 563,056 | 649,014 | 649,014 | |||
| C.O.E.L.S.A | 80041 | 3 | 87,563 | 106,593 | 87,563 | 87,563 | |||
| Matba<br> Rofex SA | 80047 | 3 | 68,046 | 70,977 | 68,046 | 68,046 | |||
| Sedesa | 80035 | 3 | 21,291 | 25,918 | 21,291 | 21,291 | |||
| AC Inversora<br> SA | 80042 | 3 | 19,583 | 23,839 | 19,583 | 19,583 | |||
| Mercado<br> a Término Rosario SA | 80038 | 3 | 14,627 | 17,806 | 14,627 | 14,627 | |||
| Provincanje<br> SA | 80044 | 3 | 14,506 | 17,658 | 14,506 | 14,506 | |||
| Argencontrol<br> SA | 80037 | 3 | 478 | 582 | 478 | 478 | |||
| San Juan<br> Tennis Club SA | 80036 | 3 | 437 | 532 | 437 | 437 | |||
| Garantizar<br> SGR | 80043 | 3 | 10 | 12 | 10 | 10 | |||
| Subtotal local | 875,555 | 826,973 | 875,555 | 875,555 | |||||
| - Foreign | |||||||||
| Banco<br> Latinoamericano de Comercio Exterior SA | 80045 | 1 | 26,528 | 25,511 | 26,528 | 26,528 | |||
| Sociedad<br> de Telecomunicaciones Financieras Interbancarias Mundiales | 80046 | 3 | 6,662 | 6,873 | 6,662 | 6,662 | |||
| Subtotal<br> foreign | 33,190 | 32,384 | 33,190 | 33,190 | |||||
| Total measured at fair value<br> through profit or loss | 908,745 | 859,357 | 908,745 | 908,745 | |||||
| TOTAL EQUITY INSTRUMENTS | 908,745 | 859,357 | 908,745 | 908,745 | |||||
| TOTAL GOVERNMENT AND PRIVATE<br> SECURITIES | 1,069,340,522 | 1,128,341,605 | 1,077,198,170 | (75,638,514 | ) | 1,001,559,656 |
| - 110 - | Carlos A. Giovanelli<br> Vice Chairperson |
| --- | --- |
EXHIBIT B
CLASSIFICATION OF LOANS AND OTHER FINANCING
BY SITUATION AND COLLATERAL RECEIVED
AS OF MARCH 31, 2023 AND DECEMBER 31, 2022
(Translation of the Financial Statements originally issued in Spanish – See Note 42)
(Figures stated in thousands of pesos in constant currency as of March 31, 2023)
| COMMERCIAL | 03/31/2023 | 12/31/2022 | ||
|---|---|---|---|---|
| In normal situation | 134,016,589 | 134,696,295 | ||
| With senior “A” collateral and counter-collateral | 14,459,047 | 17,530,660 | ||
| With senior “B” collateral and counter-collateral | 19,755,418 | 22,353,221 | ||
| Without senior collateral or counter-collateral | 99,802,124 | 94,812,414 | ||
| Troubled | 1,576,047 | 1,704,999 | ||
| With senior “A” collateral and counter-collateral | 87,445 | |||
| With senior “B” collateral and counter-collateral | 943,508 | 1,126,659 | ||
| Without senior collateral or counter-collateral | 632,539 | 490,895 | ||
| With high risk of insolvency | 796,584 | 981,502 | ||
| With senior “A” collateral and counter-collateral | 106,001 | |||
| With senior “B” collateral and counter-collateral | 701,156 | 723,413 | ||
| Without senior collateral or counter-collateral | 95,428 | 152,088 | ||
| Subtotal Commercial | 136,389,220 | 137,382,796 |
| - 111 - | Carlos A. Giovanelli<br> Vice Chairperson |
| --- | --- |
EXHIBIT B
(continued)
CLASSIFICATION OF LOANS AND OTHER FINANCING
BY SITUATION AND COLLATERAL RECEIVED
AS OF MARCH 31, 2023 AND DECEMBER 31, 2022
(Translation of the Financial Statements originally issued in Spanish – See Note 42)
(Figures stated in thousands of pesos in constant currency as of March 31, 2023)
| CONSUMER AND MORTGAGE | 03/31/2023 | 12/31/2022 |
|---|---|---|
| Performing | 574,740,799 | 602,894,302 |
| With senior “A” collateral and counter-collateral | 36,734,786 | 39,619,122 |
| With senior “B” collateral and counter-collateral | 32,342,276 | 35,998,363 |
| Without senior collateral or counter-collateral | 505,663,737 | 527,276,817 |
| Low risk | 5,790,704 | 4,696,073 |
| With senior “A” collateral and counter-collateral | 99,493 | 72,282 |
| With senior “B” collateral and counter-collateral | 148,375 | 102,943 |
| Without senior collateral or counter-collateral | 5,542,836 | 4,520,848 |
| Low risk - in special treatment | 41,507 | 35,772 |
| Without senior collateral or counter-collateral | 41,507 | 35,772 |
| Medium risk | 3,737,645 | 3,216,924 |
| With senior “A” collateral and counter-collateral | 10,693 | 22,384 |
| With senior “B” collateral and counter-collateral | 96,713 | 83,024 |
| Without senior collateral or counter-collateral | 3,630,239 | 3,111,516 |
| High risk | 2,884,414 | 2,450,194 |
| With senior “A” collateral and counter-collateral | 18,833 | 27,642 |
| With senior “B” collateral and counter-collateral | 44,283 | 95,246 |
| Without senior collateral or counter-collateral | 2,821,298 | 2,327,306 |
| Irrecoverable | 1,290,723 | 1,093,865 |
| With senior “A” collateral and counter-collateral | 36,960 | 37,341 |
| With senior “B” collateral and counter-collateral | 203,541 | 173,743 |
| Without senior collateral or counter-collateral | 1,050,222 | 882,781 |
| Subtotal consumer and mortgage | 588,485,792 | 614,387,130 |
| Total | 724,875,012 | 751,769,926 |
| - 112 - | Carlos A. Giovanelli<br> Vice Chairperson |
| --- | --- |
EXHIBIT B
(continued)
CLASSIFICATION OF LOANS AND OTHER FINANCING
BY SITUATION AND COLLATERAL RECEIVED
AS OF MARCH 31, 2023 AND DECEMBER 31, 2022
(Translation of the Financial Statements originally issued in Spanish – See Note 42)
(Figures stated in thousands of pesos in constant currency as of March 31, 2023)
This exhibit discloses the contractual figures as established by the BCRA. The reconciliation with the condensed separate interim Financial Statements is listed below:
| 03/31/2023 | 12/31/2022 | |||||
|---|---|---|---|---|---|---|
| Loans and other financings | 697,033,198 | 728,417,099 | ||||
| Added: | ||||||
| Allowances for loans and other financings | 14,005,651 | 13,378,235 | ||||
| Adjustment amortized cost and fair value | 1,901,910 | 2,053,755 | ||||
| Debt securities of financial trust - Measured at amortized cost | 328,133 | 375,379 | ||||
| Corporate bonds | 1,225,436 | 1,264,809 | ||||
| Subtract: | ||||||
| Interest and other accrued items receivable from financial assets with impaired credit value | (260,676 | ) | (190,684 | ) | ||
| Guarantees provided and contingent liabilities | 10,641,360 | 6,471,333 | ||||
| Total computable items | 724,875,012 | 751,769,926 |
| - 113 - | Carlos A. Giovanelli<br> Vice Chairperson |
| --- | --- |
EXHIBIT C
CONCENTRATION OF LOANS AND FINANCING FACILITIES
AS OF MARCH 31, 2023 AND DECEMBER 31, 2022
(Translation of the Financial Statements originally issued in Spanish – See Note 42)
(Figures stated in thousands of pesos in constant currency as of March 31, 2023)
| 03/31/2023 | 12/31/2022 | |||
|---|---|---|---|---|
| Number of customers | Cut off balance | % of total portfolio | Cut off balance | % of total portfolio |
| 10 largest customers | 34,071,712 | 4.70 | 27,341,162 | 3.64 |
| 50 next largest customers | 46,457,182 | 6.41 | 49,171,365 | 6.54 |
| 100 next largest customers | 35,631,460 | 4.92 | 38,992,823 | 5.19 |
| Other customers | 608,714,658 | 83.97 | 636,264,576 | 84.63 |
| Total (1) | 724,875,012 | 100.00 | 751,769,926 | 100.00 |
(1) See reconciliation in Exhibit B.
| - 114 - | Carlos A. Giovanelli<br> Vice Chairperson |
| --- | --- |
EXHIBIT D
BREAKDOWN OF LOANS AND OTHER FINANCING BY TERMS
AS OF MARCH 31, 2023
(Translation of the Financial Statements originally issued in Spanish – See Note 42)
(Figures stated in thousands of pesos in constant currency as of March 31, 2023)
| Remaining terms to maturity | ||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Item | Matured | Up to 1 <br><br> month | Over 1 month<br> <br> and up to 3<br> months | Over 3 months<br><br> and up to 6<br> months | Over 6 months<br><br> and up to 12<br> months | Over 12 <br><br> months and up <br> to 24 months | Over 24<br><br> months | Total | ||||||||
| Non-financial government sector | 108 | 1,018,497 | 129,178 | 97,797 | 173,868 | 266,766 | 117,222 | 1,803,436 | ||||||||
| Financial sector | 659,446 | 563,679 | 151,495 | 324,159 | 587,285 | 295,160 | 2,581,224 | |||||||||
| Non-financial private sector<br> and foreign residents | 4,122,046 | 292,757,168 | 117,181,748 | 102,762,935 | 120,058,922 | 149,066,388 | 167,577,145 | 953,526,352 | ||||||||
| Total | 4,122,154 | 294,435,111 | 117,874,605 | 103,012,227 | 120,556,949 | 149,920,439 | 167,989,527 | 957,911,012 |
BREAKDOWN OF LOANS AND OTHER FINANCING BY TERMS
AS OF DECEMBER 31, 2022
(Translation of the Financial Statements originally issued in Spanish – See Note 42)
(Figures stated in thousands of pesos in constant currency as of March 31, 2023)
| Remaining terms to maturity | ||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Item | Matured | Up to 1 <br><br> month | Over 1 month<br> <br> and up to 3<br> months | Over 3 months<br><br> and up to 6<br> months | Over 6 months<br><br> and up to 12<br> months | Over 12 <br><br> months and up <br> to 24 months | Over 24<br><br> months | Total | ||||||||
| Non-financial government sector | 131 | 1,648,831 | 699,673 | 126,652 | 227,625 | 356,324 | 210,481 | 3,269,717 | ||||||||
| Financial sector | 59,792 | 80,530 | 680,100 | 247,739 | 372,186 | 113,705 | 1,554,052 | |||||||||
| Non-financial private sector<br> and foreign residents | 4,222,874 | 327,406,920 | 86,070,635 | 105,356,620 | 131,542,005 | 145,597,262 | 183,616,373 | 983,812,689 | ||||||||
| Total | 4,223,005 | 329,115,543 | 86,850,838 | 106,163,372 | 132,017,369 | 146,325,772 | 183,940,559 | 988,636,458 |
This exhibit disclosures contractual future cash flows that include interests and charges to be accrued until maturity of the contracts.
| - 115 - | Carlos A. Giovanelli<br> Vice Chairperson |
| --- | --- |
EXHIBIT F
CHANGE OF PROPERTY, PLANT AND EQUIPMENT
AS OF MARCH 31, 2023
(Translation of the Financial Statements originally issued in Spanish – See Note 42)
(Figures stated in thousands of pesos in constant currency as of March 31, 2023)
| **** | Original value at beginning of | Total life estimated | **** | **** | **** | Depreciation of the period | Residual value at the end of the | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Item | fiscal year | in years | Increases | Decreases | Transfers | Accumulated | Transfers | Decrease | Of the period | At the end | period | ||||||||
| Cost | |||||||||||||||||||
| Real<br> property | 115,893,655 | 50 | 26,101 | 24,757 | 13,795,028 | 2,989 | 649,983 | 14,442,022 | 101,452,977 | ||||||||||
| Furniture<br> and facilities | 17,808,939 | 10 | 147,583 | 8,981,605 | 371,133 | 9,352,738 | 8,603,784 | ||||||||||||
| Machinery<br> and equipment | 26,097,460 | 5 | 484,995 | 18,635,880 | 841,532 | 19,477,412 | 7,105,043 | ||||||||||||
| Vehicles | 3,421,648 | 5 | 358,011 | 94,140 | 2,719,875 | 78,658 | 87,063 | 2,728,280 | 957,239 | ||||||||||
| Work in<br> progress | 1,578,160 | 924,356 | 2,502,516 | ||||||||||||||||
| Right of<br> use real property | 9,842,903 | 5 | 269,363 | 6,598,053 | 410,221 | 7,008,274 | 3,103,992 | ||||||||||||
| Right of<br> use furniture | 5 | 653,674 | 29,743 | 29,743 | 623,931 | ||||||||||||||
| Total<br> property, plant and equipment | 174,642,765 | 2,864,083 | 118,897 | 50,730,441 | 81,647 | 2,389,675 | 53,038,469 | 124,349,482 |
CHANGE OF PROPERTY, PLANT AND EQUIPMENT
AS OF DECEMBER 31, 2022
(Translation of the Financial Statements originally issued in Spanish – See Note 42)
(Figures stated in thousands of pesos in constant currency as of March 31, 2023)
| Depreciation<br> for the fiscal year | Residual | ||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Item | Original<br> value<br> at beginning of<br> fiscal year | Total<br> life <br> estimated<br> in years | Increases | Decreases | Transfers | Accumulated | Transfers | Decrease | For<br> the<br> fiscal<br> year | At<br> the end | value<br> at the <br> end of the<br> fiscal year | ||||||||||||
| Cost | |||||||||||||||||||||||
| Real<br> property | 113,651,848 | 50 | 724,939 | 148,719 | 1,665,587 | 11,424,070 | (95,593 | ) | 25,556 | 2,492,107 | 13,795,028 | 102,098,627 | |||||||||||
| Furniture<br> and facilities | 15,490,806 | 10 | 503,518 | 1,434 | 1,816,049 | 7,590,411 | 5 | 90 | 1,391,279 | 8,981,605 | 8,827,334 | ||||||||||||
| Machinery<br> and equipment | 22,263,178 | 5 | 2,553,848 | 354 | 1,280,788 | 15,365,298 | (1,869 | ) | 80 | 3,272,531 | 18,635,880 | 7,461,580 | |||||||||||
| Vehicles | 3,099,984 | 5 | 547,732 | 214,859 | (11,209 | ) | 2,551,488 | (851 | ) | 140,410 | 309,648 | 2,719,875 | 701,773 | ||||||||||
| Work in progress | 3,761,309 | 3,298,619 | (5,481,768 | ) | 1,578,160 | ||||||||||||||||||
| Right<br> of use real property | 8,904,279 | 5 | 1,041,987 | 103,363 | 4,978,047 | 58,929 | 1,678,935 | 6,598,053 | 3,244,850 | ||||||||||||||
| Total<br> property, plant and equipment | 167,171,404 | 8,670,643 | 468,729 | (730,553 | ) | 41,909,314 | (98,308 | ) | 225,065 | 9,144,500 | 50,730,441 | 123,912,324 |
| - 116 - | Carlos A. Giovanelli<br> Vice Chairperson |
| --- | --- | | EXHIBIT F | | --- | | (Continued) | | CHANGE IN INVESTMENT PROPERTY | | AS OF MARCH 31, 2023 | | (Translation<br> of the Financial Statements originally issued in Spanish – See Note 42) | | (Figures<br> stated in thousands of pesos in constant currency as of March 31, 2023) | | **** | Original Value at | | Useful | | **** | | **** | **** | Depreciation of the period | | | | | | | **** | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | Item | beginning of fiscal year | | life estimated in years | | Increases | | Decreases | Transfers | Accumulated | | Transfers | Of the period | | At the end | | Residual value at the end of the period | | | Cost | | | | | | | | | | | | | | | | | | | Leased<br> properties | | 482,814 | | 50 | | | | | | 72,992 | | | 1,818 | | 74,810 | | 408,004 | | Other<br> investment properties | | 9,323,891 | | 50 | | 375,085 | | | | 47,854 | | | 1,631 | | 49,485 | | 9,649,491 | | Total<br> investment property | | 9,806,705 | | | | 375,085 | | | | 120,846 | | | 3,449 | | 124,295 | | 10,057,495 | | CHANGE IN INVESTMENT PROPERTY | | --- | | AS OF DECEMBER 31, 2022 | | (Translation<br> of the Financial Statements originally issued in Spanish – See Note 42) | | (Figures<br> stated in thousands of pesos in constant currency as of March 31, 2023) | | **** | Original Value at | | Useful | | **** | | **** | | **** | | **** | Depreciation for the fiscal year | | | | | | | | | **** | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | Item | beginning of fiscal year | | life estimated in years | | Increases | | Decreases | | Transfers (1) | | **** | Accumulated | | Transfers (1) | | **** | For the fiscal <br><br>year | | At the end | | Residual value at the end of the fiscal year | | | Cost | | | | | | | | | | | | | | | | | | | | | | | | Leased<br> properties | | 547,782 | | 50 | | 1,408 | | | | (66,376 | ) | | 19,789 | | 46,791 | | | 6,412 | | 72,992 | | 409,822 | | Other<br> investment properties | | 603,391 | | 50 | | 12,017,936 | | 24,324 | | (3,273,112 | ) | | 46,922 | | (6,939 | ) | | 7,871 | | 47,854 | | 9,276,037 | | Total<br> investment property | | 1,151,173 | | | | 12,019,344 | | 24,324 | | (3,339,488 | ) | | 66,711 | | 39,852 | | | 14,283 | | 120,846 | | 9,685,859 | | (1) | During the fiscal year 2022, under this item transfers were made<br> to Non-current assets held for sale. | | --- | --- |
| - 117 - | Carlos A. Giovanelli<br> Vice Chairperson |
| --- | --- | | EXHIBIT G | | --- | | CHANGE IN INTANGIBLE ASSETS | | AS OF MARCH 31, 2023 | | (Translation<br> of the Financial Statements originally issued in Spanish – See Note 42) | | (Figures<br> stated in thousands of pesos in constant currency as of March 31, 2023) | | | Original<br> <br><br>Value at | | Useful | | | | | | Depreciation<br> of the period | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | Item | beginning<br> <br><br>of fiscal<br><br> year | | life<br><br><br> estimated <br><br>in years | | Increases | | Decreases | Transfers | Accumulated | | Transfers | Decrease | Of<br> the period | | At<br> the end | | Residual<br> value <br><br>at the end of <br><br>the period | | | Cost | | | | | | | | | | | | | | | | | | | | Licenses | | 13,587,482 | | 5 | | 638,187 | | | | 9,514,924 | | | | 587,969 | | 10,102,893 | | 4,122,776 | | Other<br> intangible assets | | 47,117,540 | | 5 | | 2,288,133 | | | | 30,102,717 | | | | 1,832,315 | | 31,935,032 | | 17,470,641 | | Total<br> intangible assets | | 60,705,022 | | | | 2,926,320 | | | | 39,617,641 | | | | 2,420,284 | | 42,037,925 | | 21,593,417 | | CHANGE IN INTANGIBLE ASSETS | | --- | | AS OF DECEMBER 31, 2022 | | (Translation<br> of the Financial Statements originally issued in Spanish – See Note 42) | | (Figures<br> stated in thousands of pesos in constant currency as of March 31, 2023) | | | Original<br> <br><br> Value at | | Useful | | | | | | | | | Depreciation<br> for the fiscal year | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | Item | beginning<br> <br><br> of fiscal<br><br> year | | life<br><br> estimated <br><br> in years | | Increases | | Decreases | | Transfers | | | Accumulated | | Transfers | | | Decrease | | For <br> the fiscal <br><br>year | | At<br> the end | | Residual<br> value <br> at the end of <br> the fiscal year | | | Cost | | | | | | | | | | | | | | | | | | | | | | | | | | Licenses | | 11,881,161 | | 5 | | 1,596,769 | | | | 109,552 | | | 7,267,933 | | 4,110 | | | | | 2,242,881 | | 9,514,924 | | 4,072,558 | | Other<br> intangible assets | | 38,468,406 | | 5 | | 8,786,865 | | 40,642 | | (97,089 | ) | | 23,212,217 | | (1,620 | ) | | 1,599 | | 6,893,719 | | 30,102,717 | | 17,014,823 | | Total<br> intangible assets | | 50,349,567 | | | | 10,383,634 | | 40,642 | | 12,463 | | | 30,480,150 | | 2,490 | | | 1,599 | | 9,136,600 | | 39,617,641 | | 21,087,381 |
| - 118 - | Carlos A. Giovanelli<br> Vice Chairperson |
| --- | --- | | EXHIBIT H | | --- | | DEPOSIT CONCENTRATION | | AS OF MARCH 31, 2023 AND DECEMBER 31, 2022 | | (Translation<br> of the Financial Statements originally issued in Spanish – See Note 42) | | (Figures<br> stated in thousands of pesos in constant currency as of March 31, 2023) | | | 03/31/2023 | | | | 12/31/2022 | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | Number of customers | Outstanding <br><br>balance | | % of total <br><br>portfolio | | Outstanding <br><br>balance | | % of total <br><br>portfolio | | | 10 largest customers | | 143,085,667 | | 9.85 | | 187,038,290 | | 11.93 | | 50 next largest customers | | 167,275,120 | | 11.51 | | 162,836,954 | | 10.39 | | 100 next largest customers | | 65,487,108 | | 4.51 | | 75,784,678 | | 4.83 | | Other customers | | 1,077,283,337 | | 74.13 | | 1,142,118,855 | | 72.85 | | Total | | 1,453,131,232 | | 100.00 | | 1,567,778,777 | | 100.00 |
| - 119 - | Carlos A. Giovanelli<br> Vice Chairperson |
| --- | --- | | EXHIBIT I | | --- | | BREAKDOWN OF FINANCIAL LIABILITIES FOR RESIDUAL TERMS | | AS OF MARCH 31, 2023 | | (Translation<br> of the Financial Statements originally issued in Spanish – See Note 42) | | (Figures<br> stated in thousands of pesos in constant currency as of March 31, 2023) | | **** | Remaining terms to maturity | | | | | | | | | | | | **** | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | Item | Up<br> to 1 month | | Over<br> 1 <br><br>month and <br><br>up to 3 <br><br>months | | Over<br> 3 <br><br>months and <br><br>up to 6 <br><br>months | | Over<br> 6 <br><br>months and <br><br>up to 12<br><br> months | | Over<br> 12 <br><br>months and <br><br>up to 24 <br><br>months | | Over<br> 24 <br><br>months | | Total | | | Deposits | | 1,278,673,404 | | 193,877,023 | | 8,694,582 | | 2,546,840 | | 73,772 | | 3,656 | | 1,483,869,277 | | From<br> the non-financial government sector | | 104,232,312 | | 7,365,016 | | 1,228,071 | | 5,922 | | | | 1,697 | | 112,833,018 | | From<br> the financial sector | | 1,910,914 | | | | | | | | | | | | 1,910,914 | | From<br> the non-financial private sector and foreign residents | | 1,172,530,178 | | 186,512,007 | | 7,466,511 | | 2,540,918 | | 73,772 | | 1,959 | | 1,369,125,345 | | Derivative<br> instruments | | 89,905 | | | | 10,493 | | | | | | | | 100,398 | | Repo<br> transactions | | 4,506,489 | | | | | | | | | | | | 4,506,489 | | Other<br> financial institutions | | 4,506,489 | | | | | | | | | | | | 4,506,489 | | Other<br> financial liabilities | | 112,997,932 | | 472,616 | | 466,637 | | 853,193 | | 1,381,477 | | 3,045,436 | | 119,217,291 | | Financing<br> received from the Central Bank of Argentina and other financial institutions | | 1,278,648 | | 1,366,228 | | 1,596,443 | | 342,195 | | | | | | 4,583,514 | | Issued<br> corporate bonds | | | | 12,561 | | 12,985 | | 25,970 | | 3,565,504 | | | | 3,617,020 | | Subordinated<br> corporate bonds | | | | 2,776,619 | | | | 2,776,619 | | 5,553,237 | | 94,701,794 | | 105,808,269 | | Total | | 1,397,546,378 | | 198,505,047 | | 10,781,140 | | 6,544,817 | | 10,573,990 | | 97,750,886 | | 1,721,702,258 |
This exhibit discloses contractual future cash flows that include interests and charges to be accrued until maturity of the contracts.
| - 120 - | Carlos A. Giovanelli<br> Vice Chairperson |
| --- | --- | | EXHIBIT I | | --- | | BREAKDOWN OF FINANCIAL LIABILITIES FOR RESIDUAL TERMS | | AS OF DECEMBER 31, 2022 | | (Translation<br> of the Financial Statements originally issued in Spanish – See Note 42) | | (Figures<br> stated in thousands of pesos in constant currency as of March 31, 2023) | | **** | Remaining terms to maturity | | | | | | | | | | | | **** | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | Item | Up<br> to 1 month | | Over<br> 1 <br><br> month and <br><br> up to 3 <br><br> months | | Over<br> 3 <br><br> months and <br><br> up to 6 <br><br> months | | Over<br> 6 <br><br> months and<br><br> up to 12 <br><br>months | | Over<br> 12 <br><br> months and <br><br> up to 24 <br><br> months | | Over<br> 24 <br><br> months | | Total | | | Deposits | | 1,435,622,970 | | 138,213,256 | | 24,046,390 | | 2,315,537 | | 14,967 | | 44,846 | | 1,600,257,966 | | From<br> the non-financial government sector | | 131,216,146 | | 4,120,592 | | 1,241,301 | | 5,474 | | | | | | 136,583,513 | | From<br> the financial sector | | 2,012,780 | | | | | | | | | | | | 2,012,780 | | From<br> the non-financial private sector and foreign residents | | 1,302,394,044 | | 134,092,664 | | 22,805,089 | | 2,310,063 | | 14,967 | | 44,846 | | 1,461,661,673 | | Derivative<br> instruments | | 2,087 | | 799 | | | | | | | | | | 2,886 | | Other<br> financial liabilities | | 134,630,886 | | 514,805 | | 466,147 | | 895,639 | | 1,491,979 | | 3,446,239 | | 141,445,695 | | Financing<br> received from the Central Bank of Argentina and other financial institutions | | 355,350 | | 629,914 | | 1,968,281 | | 54,742 | | | | | | 3,008,287 | | Issued<br> corporate bonds | | | | 13,397 | | 12,960 | | 26,793 | | 3,692,084 | | | | 3,745,234 | | Subordinated<br> corporate bonds | | | | | | 2,864,760 | | 2,864,760 | | 5,729,520 | | 97,708,021 | | 109,167,061 | | Total | | 1,570,611,293 | | 139,372,171 | | 29,358,538 | | 6,157,471 | | 10,928,550 | | 101,199,106 | | 1,857,627,129 |
This exhibit discloses contractual future cash flows that include interests and charges to be accrued until maturity of the contracts.
| - 121 - | Carlos A. Giovanelli<br> Vice Chairperson |
| --- | --- | | EXHIBIT J | | --- | | CHANGES IN PROVISIONS | | AS OF MARCH 31, 2023 | | (Translation<br> of the Financial Statements originally issued in Spanish – See Note 42) | | (Figures<br> stated in thousands of pesos in constant currency as of March 31, 2023) | | **** | Amounts at beginning of | | **** | | Decreases | | | Monetary effects generated by | | **** | **** | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | Item | fiscal year | | Increases | | Reversals | Charge off | | provisions | | **** | 03/31/2023 | | | Provisions<br> for eventual commitments | | 835,722 | | 124,070 | | | | | (154,733 | ) | | 805,059 | | For<br> administrative, disciplinary and criminal penalties | | 609 | | | | | | | (109 | ) | | 500 | | Other | | 2,453,894 | | 531,981 | | | 184,068 | | (457,661 | ) | | 2,344,146 | | Total<br> Provisions | | 3,290,225 | | 656,051 | | | 184,068 | | (612,503 | ) | | 3,149,705 | | CHANGES IN PROVISIONS | | --- | | AS OF DECEMBER 31, 2022 | | (Translation<br> of the Financial Statements originally issued in Spanish – See Note 42) | | (Figures<br> stated in thousands of pesos in constant currency as of March 31, 2023) | | **** | Amounts at beginning of | | **** | | Decreases | | | Monetary effects generated by | | **** | **** | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | Item | fiscal year | | Increases | | Reversals | Charge off | | provisions | | **** | 12/31/2022 | | | Provisions<br> for eventual commitments | | 789,494 | | 634,366 | | | | | (588,138 | ) | | 835,722 | | For<br> administrative, disciplinary and criminal penalties | | 1,183 | | | | | | | (574 | ) | | 609 | | Other | | 3,082,576 | | 2,873,513 | | | 1,428,571 | | (2,073,624 | ) | | 2,453,894 | | Total<br> Provisions | | 3,873,253 | | 3,507,879 | | | 1,428,571 | | (2,662,336 | ) | | 3,290,225 |
| - 122 - | Carlos A. Giovanelli<br> Vice Chairperson |
| --- | --- | | EXHIBIT K | | --- | | COMPOSITION OF CAPITAL STOCK | | AS OF MARCH 31, 2023 | | (Translation of the Financial Statements originally issued in Spanish – See Note 42) | | Shares | | | | | | | Capital Stock | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | Class | Stock number | | Face <br><br>value | | Votes per <br> share | | Issued<br> outstanding | | Paid in | | | Registered common stock A | | 11,235,670 | | 1 | | 5 | | 11,236 | | 11,236 | | Registered common stock B | | 628,177,738 | | 1 | | 1 | | 628,177 | | 628,177 | | Total | | 639,413,408 | | | | | | 639,413 | | 639,413 | | COMPOSITION OF CAPITAL STOCK | | --- | | AS OF DECEMBER 31, 2022 | | (Translation<br> of the Financial Statements originally issued in Spanish – See Note 42) | | Shares | | | | | | | Capital Stock | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | Class | Stock number | | Face <br><br>value | | Votes per <br> share | | Issued<br> outstanding | | Paid in | | | Registered common stock A | | 11,235,670 | | 1 | | 5 | | 11,236 | | 11,236 | | Registered common stock B | | 628,177,738 | | 1 | | 1 | | 628,177 | | 628,177 | | Total | | 639,413,408 | | | | | | 639,413 | | 639,413 |
| - 123 - | Carlos A. Giovanelli<br> Vice Chairperson |
| --- | --- | | | EXHIBIT L | | --- | --- | | FOREIGN CURRENCY AMOUNTS | | | AS OF MARCH 31, 2023 AND DECEMBER 31, 2022 | | | (Translation of the Financial Statements originally issued in Spanish – See Note 42) | | | (Figures stated in thousands of pesos in constant currency as of March 31, 2023) | | | **** | 03/31/2023 | | | | | | | | | | 12/31/2022 | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | Total parent company and | | Total per currency | | | | | | | | **** | | | Items | local<br> branches | | US dollar | | Euro | | Real | | Other | | Total | | | Assets | | | | | | | | | | | | | | Cash and deposits<br> in banks | | 231,301,108 | | 229,783,199 | | 903,529 | | 48,734 | | 565,646 | | 244,143,768 | | Debt securities at fair value<br> through profit or loss (1) | | 261,297,773 | | 261,297,773 | | | | | | | | 206,354,328 | | Other financial assets | | 15,740,819 | | 15,740,222 | | 597 | | | | | | 16,041,815 | | Loans and other financing | | 51,677,025 | | 51,677,025 | | | | | | | | 41,635,818 | | From the<br> non-financial private sector and foreign residents | | 51,677,025 | | 51,677,025 | | | | | | | | 41,635,818 | | Other debt securities | | 26,280,310 | | 26,280,310 | | | | | | | | 55,815,619 | | Financial assets delivered as<br> guarantee | | 5,196,643 | | 5,196,643 | | | | | | | | 5,342,783 | | Equity instruments at fair value<br> through profit or loss | | 33,190 | | 33,190 | | | | | | | | 32,384 | | Investments<br> in subsidiaries, associates and joint ventures | | 6,051,987 | | 6,051,987 | | | | | | | | 6,037,322 | | Total<br> assets | | 597,578,855 | | 596,060,349 | | 904,126 | | 48,734 | | 565,646 | | 575,403,837 | | Liabilities | | | | | | | | | | | | | | Deposits | | 192,409,049 | | 192,409,049 | | | | | | | | 198,446,660 | | Non-financial<br> government sector | | 8,063,278 | | 8,063,278 | | | | | | | | 7,502,481 | | Financial<br> sector | | 1,651,080 | | 1,651,080 | | | | | | | | 1,703,400 | | Non-financial<br> private sector and foreign residents | | 182,694,691 | | 182,694,691 | | | | | | | | 189,240,779 | | Other financial liabilities | | 9,901,187 | | 9,603,325 | | 257,941 | | | | 39,921 | | 9,617,392 | | Financing from the Central Bank<br> and other financial institutions | | 4,455,615 | | 4,455,615 | | | | | | | | 2,918,127 | | Issued corporate bonds | | 3,546,892 | | 3,546,892 | | | | | | | | 3,656,522 | | Subordinated corporate bonds | | 86,599,261 | | 86,599,261 | | | | | | | | 87,981,313 | | Other non-financial<br> liabilities | | 17,743 | | 17,743 | | | | | | | | 17,271 | | Total<br> liabilities | | 296,929,747 | | 296,631,885 | | 257,941 | | | | 39,921 | | 302,637,285 | | (1) | Included mainly, Federal government bonds in dual currency at discount for 189,676,015 and Federal government treasury bonds linked<br>to dolar for 71,614,348. | | --- | --- |
| - 124 - | Carlos A. Giovanelli<br> Vice Chairperson |
| --- | --- |
EXHIBIT O
| DERIVATIVE FINANCIAL INSTRUMENTS | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| AS OF MARCH 31, 2023 | ||||||||||||
| (Translation of the Financial Statements originally issued in Spanish – See Note 42) | ||||||||||||
| (Figures stated in thousands of pesos in constant currency as of March 31, 2023) | ||||||||||||
| Type<br> of contract | Purpose<br> of the<br><br> transactions<br><br> performed | Underlying<br> <br><br>asset | Type<br> of settlement | Negotiation<br><br><br> environment or<br><br> counter-party | Originally<br><br><br> agreed<br><br> weighted<br> average term<br><br> (months) | Residual<br><br><br> weighted<br><br> average term<br><br> (months) | Weighted<br> daily<br><br> average term<br><br> settlement of<br><br> differences<br><br> (days) | Amount<br> (1) | ||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Futures<br> (2) | Intermediation - own<br> account | Foreign<br> currency | Daily settlement of<br> differences | ROFEX<br> (over-the-counter electronic market) | 1 | 1 | 1 | 15,003,386 | ||||
| Forward<br> (2) | Intermediation - own<br> account | Foreign currency | Maturity settlement of<br> differences | Over The Counter -<br> Residents in Argentina - Non financial sector | 6 | 1 | 30 | 151,085 | ||||
| Repo<br> transactions | Intermediation - own<br> account | Local<br> government securities | With delivery of underlying<br> asset | Other<br> countries of local | 1 | 1 | 48,149,162 | |||||
| Options | Intermediation - own<br> account | Other | With delivery of underlying<br> asset | Over The Counter -<br> Residents in Argentina - Non financial sector | 29 | 18 | 3,004,365 | |||||
| Options<br> (3) | Intermediation - own<br> account | Local<br> government securities | With delivery of underlying<br> asset | Over The Counter -<br> Residents in Argentina - financial sector | 14 | 14 | 75,638,514 |
(1) Related to the valuation of the underlying traded, disclosed in absolute values.
(2) Related to compensated operations forward (OCT).
(3) See Notes 5 and 9 to the condensed consolidated interim Financial Statements.
| - 125 - | Carlos A. Giovanelli<br> Vice Chairperson |
| --- | --- | | | EXHIBIT Q | | --- | --- | | BREAKDOWN OF STATEMENT OF INCOME | | | FOR THE THREE MONTH PERIODS ENDED MARCH 31, 2023 AND 2022 | | | (Translation of the Financial Statements originally issued in Spanish – See Note 42) | | | (Figures stated in thousands of pesos in constant currency as of March 31, 2023) | | | | Net financial Income / (Loss) | | | | | | | --- | --- | --- | --- | --- | --- | --- | | | Mandatory measurement | | | | | | | Items | Quarter ended<br><br> 03/31/2023 | | | Quarter ended<br><br> 03/31/2022 | | | | For measurement of financial assets at fair value through profit or loss | | | | | | | | Gain from government securities | | 6,003,960 | | | 7,679,463 | | | Gain from private securities | | 215,760 | | | 235,030 | | | Gain from derivative financial instruments | | | | | | | | Forward transactions | | 194,481 | | | | | | Loss from other financial assets | | (14,892 | ) | | (5,326 | ) | | Gain from equity instruments at fair value through profit or loss | | 50,831 | | | 1,889,218 | | | (Loss) / Gain from sales or decreases of financial assets at fair value (1) | | (582,412 | ) | | 2,045,940 | | | For measurement of financial liabilities at fair value through profit or loss | | | | | | | | Loss from derivative financial instruments | | | | | | | | Options | | (416,939 | ) | | | | | Total | | 5,450,789 | | | 11,844,325 | | | (1) | Net amount of reclassifications to profit of instruments classified at fair value through other comprehensive income that were derecognized<br>or charged during of the period. | | --- | --- |
| - 126 - | Carlos A. Giovanelli<br> Vice Chairperson |
| --- | --- | | | EXHIBIT Q | | --- | --- | | | (Continued) | | BREAKDOWN OF STATEMENT OF INCOME | | | FOR THE THREE MONTH PERIODS ENDED MARCH 31, 2023 AND 2022 | | | (Translation of the Financial Statements originally issued in Spanish – See Note 42) | | | (Figures stated in thousands of pesos in constant currency as of March 31, 2023) | | | Interest and adjustment for the application of the effective | Net financial income / (Loss) | | | | | **** | | --- | --- | --- | --- | --- | --- | --- | | interest rate of financial assets and financial liabilities measured at amortized cost | Quarter ended<br><br> 03/31/2023 | | | Quarter ended<br><br> 03/31/2022 | | | | Interest income | | | | | | | | for cash and bank deposits | | 550,377 | | | 5,788 | | | for government securities | | 111,257,098 | | | 3,326,557 | | | for private securities | | 98,154 | | | 51,329 | | | for loans and other financing | | | | | | | | Non-financial public sector | | 387,107 | | | 564,420 | | | Financial sector | | 106,453 | | | 188,238 | | | Non-financial private sector | | | | | | | | Overdrafts | | 9,339,182 | | | 5,175,706 | | | Documents | | 9,052,846 | | | 6,232,692 | | | Mortgage loans | | 11,004,103 | | | 9,549,877 | | | Pledge loans | | 801,834 | | | 1,058,814 | | | Personal loans | | 25,947,766 | | | 28,199,817 | | | Credit cards | | 18,187,106 | | | 10,259,035 | | | Financial leases | | 115,229 | | | 93,364 | | | Other | | 11,079,093 | | | 7,676,013 | | | for repo transactions | | | | | | | | Central Bank of Argentina | | 6,712,679 | | | 811,784 | | | Other financial institutions | | 15,252 | | | 71,168 | | | Total | | 204,654,279 | | | 73,264,602 | | | Interest expenses | | | | | | | | for Deposits | | | | | | | | Non-financial Private sector | | | | | | | | Checking accounts | | (5,910,328 | ) | | (879,841 | ) | | Saving accounts | | (1,281,113 | ) | | (802,998 | ) | | Time deposits and investments accounts | | (120,578,650 | ) | | (50,974,023 | ) | | for Financing received from Central Bank of Argentina and other financial institutions | | (212,379 | ) | | (90,964 | ) | | for repo transactions | | | | | | | | Other financial institutions | | (1,240,270 | ) | | (443,582 | ) | | for other financial liabilities | | (39,946 | ) | | (3,916 | ) | | for issued corporate bonds | | (16,074 | ) | | (228,346 | ) | | for other subordinated corporate bonds | | (1,343,504 | ) | | (1,483,684 | ) | | Total | | (130,622,264 | ) | | (54,907,354 | ) |
| - 127 - | Carlos A. Giovanelli<br> Vice Chairperson |
| --- | --- | | | EXHIBIT Q | | --- | --- | | | (Continued) | | BREAKDOWN OF STATEMENT OF INCOME | | | FOR THE THREE MONTH PERIODS ENDED MARCH 31, 2023 AND 2022 | | | (Translation of the Financial Statements originally issued in Spanish – See Note 42) | | | (Figures stated in thousands of pesos in constant currency as of March 31, 2023) | | | Interest and adjustment for the application of the effective | Income of the<br><br> period | | Other<br><br> comprehensive<br><br> income | | | Income of the<br><br> period | | Other<br><br> comprehensive<br><br> income | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | interest rate of financial assets measured at fair value through other comprehensive income | Quarter ended<br><br> 03/31/2023 | | Quarter ended<br><br> 03/31/2023 | | | Quarter ended<br><br> 03/31/2022 | | Quarter ended<br><br> 03/31/2022 | | | | for debt government securities | | 23,454,056 | | (1,916,836 | ) | | 67,148,777 | | (3,254,628 | ) | | Total | | 23,454,056 | | (1,916,836 | ) | | 67,148,777 | | (3,254,628 | ) | | | Income of the period | | | | | | | --- | --- | --- | --- | --- | --- | --- | | Items | Quarter ended<br><br> 03/31/2023 | | | Quarter ended<br><br> 03/31/2022 | | | | Commissions income | | | | | | | | Commissions related to obligations | | 13,659,478 | | | 12,825,297 | | | Commissions related to credits | | 78,584 | | | 87,515 | | | Commissions related to loans commitments and financial guarantees | | 1,800 | | | 1,149 | | | Commissions related to securities value | | 203,098 | | | 195,007 | | | Commissions to credit cards | | 8,081,498 | | | 7,781,140 | | | Commissions to insurances | | 1,309,301 | | | 1,334,386 | | | Commissions related to trading and foreign exchange transactions | | 533,755 | | | 513,372 | | | Total | | 23,867,514 | | | 22,737,866 | | | Commissions expenses | | | | | | | | Commissions related to trading with debt securties | | | | | | | | Commissions related to trading and foreign exchange transactions | | (103,281 | ) | | (73,407 | ) | | Other | | | | | | | | Commissions paid ATM exchange | | (1,045,131 | ) | | (1,114,535 | ) | | Checkbooks commissions and clearing houses | | (475,240 | ) | | (383,542 | ) | | Credit cards and foreign trade commissions | | (214,907 | ) | | (217,518 | ) | | Total | | (1,838,559 | ) | | (1,789,002 | ) |
| - 128 - | Carlos A. Giovanelli<br> Vice Chairperson |
| --- | --- | | | EXHIBIT R | | --- | --- | | VALUE ADJUSTMENT FOR CREDIT LOSSES - ALLOWANCES FOR UNCOLLECTIBILITY RISK | | | AS OF MARCH 31, 2023 | | | (Translation of the Financial Statements originally issued in Spanish – See Note 42) | | | (Figures stated in thousands of pesos in constant currency as of March 31, 2023) | | | | | | Movements<br> between stages of the fiscal year period | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | ECL<br> of remanent life of financial<br><br> asset | | | | | | | | | | | | Item | Amounts<br> at<br> beginning of the<br> fiscal year | | ECL<br> of the next <br> 12 months | | | Financial<br><br> instruments with<br> a significant<br> increase in credit<br> risk | | | Financial<br><br> instruments<br> with impairment | | | Monetary<br> effect <br> generated by <br> allowances | | | 03/31/2023 | | | Other<br> financial assets | | 110,826 | | 21,132 | | | | | | | | | (21,196 | ) | | 110,762 | | Loans and<br> other financing | | 13,378,235 | | 657,056 | | | 810,009 | | | 1,764,455 | | | (2,604,104 | ) | | 14,005,651 | | Other financial<br> institutions | | 9,910 | | 4,537 | | | | | | | | | (2,072 | ) | | 12,375 | | To the non-financial<br> private sector and foreign residents | | | | | | | | | | | | | | | | | | Overdrafts | | 641,203 | | 96,293 | | | (11,426 | ) | | 161,530 | | | (130,921 | ) | | 756,679 | | Documents | | 682,522 | | 94,453 | | | 9,966 | | | 19,528 | | | (130,123 | ) | | 676,346 | | Mortgage<br> loans | | 1,453,382 | | 119,264 | | | 19,862 | | | 111,428 | | | (276,193 | ) | | 1,427,743 | | Pledge<br> loans | | 230,852 | | 102,018 | | | 6,015 | | | (8,990 | ) | | (47,826 | ) | | 282,069 | | Personal<br> loans | | 5,049,052 | | (139,465 | ) | | 189,946 | | | 888,499 | | | (964,075 | ) | | 5,023,957 | | Credit<br> cards | | 3,366,855 | | 34,898 | | | 565,854 | | | 471,876 | | | (672,682 | ) | | 3,766,801 | | Financial<br> leases | | 26,338 | | (3,551 | ) | | 821 | | | 29,418 | | | (6,484 | ) | | 46,542 | | Other | | 1,918,121 | | 348,609 | | | 28,971 | | | 91,166 | | | (373,728 | ) | | 2,013,139 | | Eventual<br> commitments | | 835,722 | | 79,337 | | | 47,678 | | | | | | (157,678 | ) | | 805,059 | | Other<br> debt securities | | 969 | | 1,087 | | | | | | | | | (247 | ) | | 1,809 | | Total<br> allowances | | 14,325,752 | | 758,612 | | | 857,687 | | | 1,764,455 | | | (2,783,225 | ) | | 14,923,281 | | VALUE ADJUSTMENT FOR CREDIT LOSSES - ALLOWANCES FOR UNCOLLECTIBILITY RISK | | --- | | AS OF DECEMBER 31, 2022 | | (Translation of the Financial Statements originally issued in Spanish – See Note 42)<br><br> (Figures stated in thousands of pesos in constant currency as of March 31, 2023) | | | | | Movements<br> between stages for the fiscal year | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | ECL<br> of remanent life of financial<br><br> asset | | | | | | | | | | | | Item | Amounts<br> at<br> beginning of the<br> fiscal year | | ECL<br> of the next <br> 12 months | | | Financial<br><br> instruments with<br> a significant<br> increase in credit<br> risk | | | Financial<br><br> instruments<br> with impairment | | | Monetary<br> effect <br> generated by <br> allowances | | | 12/31/2022 | | | Other financial assets | | 62,714 | | 101,522 | | | | | | | | | (53,410 | ) | | 110,826 | | Loans and other financing | | 22,836,281 | | 2,864,645 | | | (2,991,148 | ) | | 1,625,106 | | | (10,956,649 | ) | | 13,378,235 | | Other financial institutions | | 8,656 | | 5,301 | | | | | | | | | (4,047 | ) | | 9,910 | | To the non-financial private sector and foreign residents | | | | | | | | | | | | | | | | | | Overdrafts | | 1,678,946 | | 320,314 | | | 5,448 | | | (676,256 | ) | | (687,249 | ) | | 641,203 | | Documents | | 2,280,189 | | (44,798 | ) | | (556,935 | ) | | 23,947 | | | (1,019,881 | ) | | 682,522 | | Mortgage loans | | 4,738,210 | | 345,024 | | | (2,950,776 | ) | | 1,038,511 | | | (1,717,587 | ) | | 1,453,382 | | Pledge loans | | 292,982 | | 113,999 | | | (21,278 | ) | | (15,925 | ) | | (138,926 | ) | | 230,852 | | Personal loans | | 5,882,075 | | 1,208,987 | | | 643,245 | | | 666,537 | | | (3,351,792 | ) | | 5,049,052 | | Credit cards | | 3,830,187 | | 808,576 | | | 648,668 | | | 388,472 | | | (2,309,048 | ) | | 3,366,855 | | Financial leases | | 34,666 | | 16,064 | | | 44 | | | (5,717 | ) | | (18,719 | ) | | 26,338 | | Other | | 4,090,370 | | 91,178 | | | (759,564 | ) | | 205,537 | | | (1,709,400 | ) | | 1,918,121 | | Eventual commitments | | 789,494 | | 516,614 | | | 116,778 | | | | | | (587,164 | ) | | 835,722 | | Other debts securities | | 1,287 | | 471 | | | | | | | | | (789 | ) | | 969 | | Total allowances | | 23,689,776 | | 3,483,252 | | | (2,874,370 | ) | | 1,625,106 | | | (11,598,012 | ) | | 14,325,752 |
| - 129 - | Carlos A. Giovanelli<br> Vice Chairperson |
| --- | --- |
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 10, 2023
| MACRO BANK INC. | |
|---|---|
| By: | /s/ Jorge F. Scarinci |
| Name: Jorge F. Scarinci | |
| Title: Chief Financial Officer |