Macro Bank Inc 6-K, filed Mar 10, 2021
Macro Bank Inc. (BMA)
About this 6-K
Macro Bank Inc filed this 6-K on March 10, 2021.
SECURITIESAND EXCHANGE COMMISSION
Washington**,D.C. 20549**
FORM6-K
REPORTOF FOREIGN PRIVATE ISSUER
PURSUANTTO RULE 13a-16 OR 15d-16 UNDER THE
SECURITIESEXCHANGE ACT OF 1934
March 10, 2021
Commission File Number: 001-32827
MACROBANK INC.
(Translationof registrant’s name into English)
Avenida Eduardo Madero 1182
Ciudad Autónoma de Buenos Aires C1106 ACY
Tel: 54 11 5222 6500
(Addressof registrant’s principal executive offices)
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.
| Form 20-F | x | Form 40-F | ¨ |
|---|
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):
| Yes | ¨ | No | x |
|---|
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):
| Yes | ¨ | No | x |
|---|
| 4Q20 Earnings Release |
| --- |
Banco Macro Announces Results for the Fourth Quarter of 2020
BuenosAires, Argentina, March 10, 2021 – Banco Macro S.A. (NYSE: BMA; BYMA: BMA) (“Banco Macro” or “BMA” or the “Bank”) announced today its results for the fourth quarter ended December 31, 2020 (“4Q20”). All figures are in Argentine pesos (Ps.) and have been restated in terms of the measuring unit current at the end of the reporting period. As of 1Q20, the Bank began reporting results applying Hyperinflation Accounting, in accordance with IFRS IAS 29 as established by the Central Bank. For ease of comparison, figures of previous quarters of 2019 and 2020 have been restated applying IAS 29 to reflect the accumulated effect of the inflation adjustment for each period through December 31, 2020.
Summary
•The Bank’s net income totaled Ps.6.1 billion in 4Q20. This result was 2% higher than the result posted in 3Q20 and 11% lowerthan in 4Q19. In 4Q20, the accumulated annualized return on average equity (“ROAE”) and the accumulated annualizedreturn on average assets (“ROAA”) were 20.9% and 4.3%, respectively. Net Income for FY2020 totaled Ps.30.3 billion,14% higher than the Ps.26.5 posted in FY2019. Total Comprehensive Income for FY2020 totaled Ps.25.3 billion, 5% lower than inFY2019.
•In 4Q20, Banco Macro’s financing to the private sector decreased 2% or Ps.6.1 billion quarter over quarter (“QoQ”)totaling Ps.252.5 billion and 13% or Ps.36.7 billion year over year (“YoY”). In the quarter, within consumer loans,Credit card loans stood out; with a 9% increase QoQ, meanwhile within commercial loans Documents stood out with a 10% increaseQoQ, mainly driven by loans to SMEs.
•In 4Q20, Banco Macro’s total deposits decreased 11% or Ps.59.8 billion QoQ, totaling Ps.488.7 billion and representing 79%of the Bank’s total liabilities. Private sector deposits decrased 4% or Ps.15.9 billion QoQ. In FY2020, within private sectordeposits, both time and demand deposits increased 41% and 14% respectively YoY.
•Banco Macro continued showing a strong solvency ratio, with an excess capital of Ps.132.1 billion, 34.2% regulatory capital ratio – Basel III and 27.1% Tier 1 Ratio. In addition, the Bank’s liquid assets remained at an adequate level, reaching90% of its total deposits in 4Q20.
•In 4Q20, the Bank’s non-performing to total financing ratio was 0.78% and the coverage ratio improved to 479.2%.
| 4Q20 Earnings Release Conference Call | |||
|---|---|---|---|
| IR Contacts in Buenos Aires: | |||
| Thursday, March 11, 2021 | |||
| Time: 11:00 a.m. Eastern Time | 1:00 p.m. Buenos Aires Time | Jorge Scarinci | |
| Chief Financial Officer | |||
| To participate, please dial: | |||
| Argentina Toll Free: | Nicolás A. Torres | ||
| (011) 3984 5677 | Investor Relations | ||
| Participants Dial In (Toll Free): | Webcast Replay: click here | ||
| +1 (844) 450 3847 | Phone: (54 11) 5222 6682 | ||
| Participants International Dial In: | Available from 03/11/2021 through 03/25/2021 | E-mail: investorelations@macro.com.ar | |
| +1 (412) 317 6370 | |||
| Conference ID: Banco Macro | Visit our website at: | ||
| Webcast: click<br>here | www.macro.com.ar/relaciones-inversores |
2
| 4Q20 Earnings Release |
| --- |
Disclaimer
This press release includes forward-looking statements. We have based these forward-looking statements largely on our current beliefs, expectations and projections about future events and financial trends affecting our business. Many important factors could cause our actual results to differ substantially from those anticipated in our forward-looking statements, including, among other things: inflation; changes in interest rates and the cost of deposits; government regulation; adverse legal or regulatory disputes or proceedings; credit and other risks of lending, such as increases in defaults by borrowers; fluctuations and declines in the value of Argentine public debt; competition in banking and financial services; deterioration in regional and national business and economic conditions in Argentina; and fluctuations in the exchange rate of the peso.
The words “believe,” “may,” “will,” “aim,” “estimate,” “continue,” “anticipate,” “intend,” “expect” and similar words are intended to identify forward-looking statements. Forward-looking statements include information concerning our possible or assumed future results of operations, business strategies, financing plans, competitive position, industry environment, potential growth opportunities, the effects of future regulation and the effects of competition. Forward-looking statements speak only as of the date they were made, and we undertake no obligation to update publicly or to revise any forward-looking statements after we distribute this press release because of new information, future events or other factors. In light of the risks and uncertainties described above, the forward-looking events and circumstances discussed in this press release might not occur and are not guarantees of future performance.
This report is a summary analysis of Banco Macro's financial condition and results of operations as of and for the period indicated. For a correct interpretation, this report must be read in conjunction with all other material periodically filed with the Comisión Nacional de Valores (www.cnv.gob.ar), the Securities and Exchange Commission (www.sec.gov), Bolsas y mercados Argentinos (www.byma.com.ar) and the New York Stock Exchange (www.nyse.com). In addition, the Central Bank (www.bcra.gov.ar) may publish information related to Banco Macro as of a date subsequent to the last date for which the Bank has published information.
Readers of this report must note that this is a translation made from an original version written and expressed in Spanish. Consequently, any matters of interpretation should be referred to the original version in Spanish.
3
| 4Q20 Earnings Release |
| --- |
ThisEarnings Release has been prepared in accordance with the accounting framework established by the Central Bank of Argentina (“BCRA”),based on International Financial Reporting Standards (“I.F.R.S.”) and the resolutions adopted by the InternationalAccouting Standards Board (“I.A.S.B”) and by the Federación Argentina de Consejos Profesionales de CienciasEconómicas (“F.A.C.P.E.”). As of January 2020 the Bank started reporting with the application of (i) Expectedlosses of IFRS 9 “Financial Instruments” and (ii) IAS 29 “Financial Reporting in Hyperinflationary Economies”.Data and figures shown in this Earnings Release may differ from the ones shown in the 20-F annual report.
Results
Earnings per outstanding share were Ps.10.8 in 4Q20, 2% higher than in 3Q20 and 11% lower than the result posted a year ago.
In FY2020 earnings per outstanding share were Ps.47.34, 14% higher than in FY2019.
| EARNINGS PER SHARE | Change | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| In MILLION (Measuring Unit Current at EOP) | 4Q19 | 3Q20 | 4Q20 | FY2019 | FY2020 | QoQ | YoY | |||
| Net income -Parent Company- (M ) | 7,745 | 6,765 | 6,906 | 26,476 | 30,269 | 2 | % | -11 | % | |
| Average # of shares outstanding (M) | 639 | 639 | 639 | 639 | 639 | 0 | % | 0 | % | |
| Average #of treasury stocks (shares repurchased) (M) | 0 | - | - | 18 | 0 | - | - | |||
| Book value per avg. Outstanding share () | 223 | 233 | 232 | 223 | 232 | 0 | % | 4 | % | |
| Shares Outstanding (M) | 639 | 639 | 639 | 639 | 639 | 0 | % | 0 | % | |
| Earnings per avg. outstanding share () | 12.11 | 10.59 | 10.80 | 41.41 | 47.36 | 2 | % | -11 | % | |
| EOP FX (Pesos per ) | 59.8950 | 76.1750 | 84.1450 | 10 | % | 40 | % | |||
| Book value per avg. issued ADS () | 37.23 | 30.59 | 27.57 | 37.23 | 27.57 | -10 | % | -26 | % | |
| Earnings per avg. outstanding ADS () | 2.02 | 1.39 | 1.28 | 7.91 | 6.54 | -8 | % | -37 | % |
All values are in US Dollars.
Banco Macro’s 4Q20 net income of Ps.6.1 billion was 2% or Ps.141 million higher than the previous quarter and 11% or Ps.839 million lower YoY. This result represented an accumulated ROAE and ROAA of 20.9% and 4.3% respectively.
In FY2020 net income for the period totaled Ps.30.3 billion, 14% higher than the Ps.26.5 billion posted in FY2019. Total comprehensive income totaled Ps.25.3 billion, 5% lower than a year ago.
Net operating income (before G&A and personnel expenses) was Ps.17.4 billion in 4Q20, decreasing 20% or Ps.4.4 billion compared to 3Q20 and decreased 55% or Ps.21.6 billion compared to the previous year due to lower net interest income, lower net fee income and higher loan loss provisions.
In FY2020 Net operating income (before G&A and personnel expenses) totaled Ps.95.2 billion, 12% lower than the previous year.
In 4Q20 Provision for loan losses totaled Ps.2.2 billion, 11% or Ps.211 million higher than in 2Q20. In the previous quarter loan loss provisions were explained by additional provisions made by the Bank based on estimations of the macroeconomic impact of the current Covid-19 pandemic. In this quarter three main groups showing signs of credit deterioration were included in the estimates; i) Ps.666 million related to loans with deferred installments (both commercial and consumer), ii) Ps.1.5 billion related to refinancing of outstanding credit card balances and iii) Ps.68 million related to the 24% loans extended to SMEs, from sectors or activities which the Bank considered troubled o likely to have some trouble.
Operating income (after G&A and personnel expenses) was Ps.523 million in 4Q20, 89% or Ps.4.4 billion lower than in 3Q20 and 97% or Ps.19.1 billion lower than a year ago, nonetheless despite the lower result registered in 4Q20, Operating Income (after G&A and personnel expenses) in FY2020 totaled Ps.29.2 billion and was 5% higher than in FY2019.
It is important to emphasize that this result was obtained with a leverage of only 5.2x assets to equity ratio.
4
| 4Q20 Earnings Release |
| --- | | INCOME STATEMENT | | | | | | Change | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | In MILLION (Measuring Unit Current at EOP) | 4Q19 | 3Q20 | 4Q20 | FY2019 | FY2020 | | QoQ | | YoY | | | Net Interest Income | 32,238 | 23,555 | 21,770 | 119,000 | 96,246 | | -8 | % | -32 | % | | Net fee income | 5,830 | 5,869 | 5,660 | 24,276 | 22,696 | | -4 | % | -3 | % | | Net Interest Income + Net Fee Income | 38,068 | 29,424 | 27,430 | 143,276 | 118,942 | | -7 | % | -28 | % | | Net Income from financial instruments at fair<br> value through P&L | -351 | -8,395 | -10,682 | -44,398 | -26,653 | | 27 | % | 2943 | % | | Income from assets at amortized cost | 73 | 68 | 126 | 37 | 1,293 | | 85 | % | 73 | % | | Differences in quoted prices of gold and foreign<br> currency | 1,860 | 1,345 | 1,272 | 4,761 | 4,230 | | -5 | % | -32 | % | | Other operating income | 1,276 | 1,316 | 1,391 | 10,457 | 5,370 | | 6 | % | 9 | % | | Provision for loan losses | 1,977 | 1,948 | 2,159 | 5,830 | 8,003 | | 11 | % | 9 | % | | Net Operating Income | 38,949 | 21,810 | 17,378 | 108,303 | 95,179 | | -20 | % | -55 | % | | Employee benefits | 7,057 | 6,902 | 6,856 | 28,865 | 26,599 | | -1 | % | -3 | % | | Administrative expenses | 4,664 | 3,784 | 3,897 | 17,427 | 14,540 | | 3 | % | -16 | % | | Depreciation and impairment of assets | 1,058 | 1,130 | 1,113 | 4,093 | 4,402 | | -2 | % | 5 | % | | Other operating expenses | 6,542 | 5,109 | 4,989 | 30,088 | 20,471 | | -2 | % | -24 | % | | Operating Income | 19,628 | 4,886 | 523 | 27,830 | 29,167 | | -89 | % | -97 | % | | Result from associates & joint ventures | 36 | 16 | -59 | 1,223 | -7 | | -469 | % | -264 | % | | Result from net monetary postion | -6,284 | 5,385 | 7,058 | 14,429 | 13,349 | | 31 | % | -212 | % | | Result before taxes from continuing operations | 13,380 | 10,287 | 7,522 | 43,482 | 42,509 | | -27 | % | -44 | % | | Income tax | 5,635 | 3,522 | 616 | 17,006 | 12,240 | | -83 | % | -89 | % | | Net income from continuing operations | 7,745 | 6,765 | 6,906 | 26,476 | 30,269 | | 2 | % | -11 | % | | Net Income of the period | 7,745 | 6,765 | 6,906 | 26,476 | 30,269 | | 2 | % | -11 | % | | Net income of the period attributable to parent<br> company | 7,745 | 6,765 | 6,906 | 26,476 | 30,269 | | 2 | % | -11 | % | | Net income of the period attributable to<br> minority interest | 0 | 0 | 0 | 0 | 0 | | - | | - | | | Other Comprehensive Income | -64 | -534 | -3,850 | 296 | -4,963 | | - | | - | | | Foreign currency translation differences in financial<br> statements conversion | -190 | 58 | -22 | 116 | 120 | | -138 | % | -88 | % | | Profits or losses from financial assets measured at<br> fair value through other comprehensive income (FVOCI) (IFRS 9(4.1.2)(a) | 126 | -592 | -3,828 | 180 | -5,083 | | - | | - | | | TOTAL COMPREHENSIVE INCOME FOR THE PERIOD | 7,681 | 6,231 | 3,056 | 26,772 | 25,306 | | -51 | % | -60 | % | | Total Comprehensive Income attributable to parent<br> Company | 7,681 | 6,231 | 3,056 | 26,772 | 25,306 | | -51 | % | -60 | % | | Total Comprehensive Income attributable to<br> non-controlling interests | - | - | - | - | - | | - | | - | |
All values are in US Dollars.
The Bank’s 4Q20 net interest income totaled Ps.21.7 billion, 8% or Ps.1.8 billion lower than in 3Q20 and 32% or Ps.10.5 billion lower YoY.
In FY2020 net interest income was 19% lower than in FY2019 as a result of different regulations adopted that set caps on lending rates and floors on deposit rates.
In 4Q20 interest income totaled Ps.41.6 billion, 2% or Ps.651 million higher than in 3Q20 and 11% or Ps.5 billion lower than in 4Q19.
Income from interest on loans and other financing totaled Ps.19.6 billion, 1% or Ps.164 million lower compared with the previous quarter. On a yearly basis Income from interest on loans decreased 38% or Ps.11.8 billion.
In FY2020 interest on loans totaled Ps.85.6 billion and decreased 23% compared to FY2019.
In 4Q20 income from government and private securities increased 4% or Ps.680 million QoQ (due to higher income from Government securities) and increased 38% or Ps.5.4 billion compared with the same period of last year. This result is explained 91% by income from government and private securities through other comprehensive income (Leliqs and Other government securities) and the remaining 9% is explained by income from sovereign bonds in pesos at amortized cost.
5
| 4Q20 Earnings Release |
| --- |
In FY2020 income from government and private securities decreased 29% compared with FY2019.
In 4Q20 income from Repos totaled Ps.2.5 billion, 7% or Ps.165 million higher than the previous quarter and Ps.1.5 billion higher than a year ago.
In 4Q20 FX income totaled Ps.1.3 billion, 5% or Ps.73 million lower than the previous quarter and 32% lower than a year ago. FX income gain was due to the 10% argentine peso depreciation against the US dollar, the Bank’s long spot dollar position during the quarter and FX trading results.
In FY2020 FX income totaled a Ps.4.2 billion gain, 11% lower than FY2019.
| FX INCOME | Variation | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| In MILLION (Measuring Unit Current at EOP) | 4Q19 | 3Q20 | 4Q20 | FY2019 | FY2020 | QoQ | YoY | |||
| (1) Differences in quoted prices of gold<br> and foreign currency | 1,860 | 1,345 | 1,273 | 4,761 | 4,230 | -5 | % | -32 | % | |
| Translation of FX assets and liabilities to Pesos | 385 | 836 | 1,072 | -194 | 3,278 | 28 | % | 179 | % | |
| Income from foreign currency exchange | 1,475 | 509 | 201 | 4,955 | 952 | -61 | % | -86 | % | |
| (2) Net Income from financial assets and<br> liabilities at fair value through P&L | 325 | 1 | 6 | 2056 | 76 | 500 | % | -98 | % | |
| Income from investment in derivative financing<br> instruments | 325 | 1 | 6 | 2,056 | 76 | 500 | % | -98 | % | |
| (1) +(2) Total Result from Differences in quoted<br> prices of gold and foreign currency | 2,185 | 1,346 | 1,279 | 6,817 | 4,306 | -5 | % | -41 | % |
All values are in US Dollars.
| INTEREST INCOME | Change | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| In MILLION (Measuring Unit Current at EOP) | 4Q19 | 3Q20 | 4Q20 | FY2019 | FY2020 | QoQ | YoY | |||
| Interest on Cash and due from Banks | 94 | 32 | 2 | 355 | 128 | -94 | % | -98 | % | |
| Interest from government securities | 12,756 | 18,518 | 19,330 | 88,034 | 62,718 | 4 | % | 52 | % | |
| Interest from private securities | 1,361 | 294 | 162 | 1,943 | 1,608 | -45 | % | -88 | % | |
| Interest on loans and other financing | ||||||||||
| To the financial sector | 622 | 219 | 176 | 2,822 | 1,012 | -20 | % | -72 | % | |
| To the public non financial sector | 759 | 646 | 493 | 1,840 | 2,953 | -24 | % | -35 | % | |
| Interest on overdrafts | 9,486 | 1,528 | 1,373 | 21,176 | 10,813 | -10 | % | -86 | % | |
| Interest on documents | 1,780 | 887 | 1,170 | 7,594 | 4,759 | 32 | % | -34 | % | |
| Interest on mortgages loans | 3,166 | 1,727 | 2,290 | 11,032 | 8,074 | 33 | % | -28 | % | |
| Interest on pledged loans | 179 | 118 | 108 | 856 | 476 | -8 | % | -40 | % | |
| Interest on personal loans | 9,082 | 7,967 | 7,958 | 40,830 | 32,690 | 0 | % | -12 | % | |
| Interest on credit cards loans | 4,087 | 2,789 | 2,533 | 17,979 | 11,511 | -9 | % | -38 | % | |
| Interest on financial leases | 40 | 5 | 10 | 247 | 57 | 100 | % | -75 | % | |
| Interest on other loans | 2,233 | 3,883 | 3,494 | 7,164 | 13,213 | -10 | % | 56 | % | |
| Interest on Repos | ||||||||||
| From the BCRA | 534 | 2,332 | 2,477 | 553 | 6,972 | 6 | % | 364 | % | |
| Other financial institutions | 457 | 11 | 31 | 3,919 | 96 | 182 | % | -93 | % | |
| Total Interest income | 46,636 | 40,956 | 41,607 | 206,344 | 157,080 | 2 | % | -11 | % | |
| Income from Interest on loans | 31,434 | 19,769 | 19,605 | 111,540 | 85,558 | -1 | % | -38 | % |
All values are in US Dollars.
The Bank’s 4Q20 interest expense totaled Ps.19.8 billion, increasing 14% or Ps.2.4 billion compared to the previous quarter and 38% (Ps.5.4 billion) compared to 4Q19.
6
| 4Q20 Earnings Release |
| --- |
In 4Q20, interest on deposits represented 94% of the Bank’s total interest expense, increasing 14% or Ps.2.4 billion QoQ, due to a 320 b.p. increase in the average rate paid on deposits (up from 17.9% in 3Q20 to 21.1% in 4Q20, this increase can be traced to a 456 b.p QoQ increase in the average Badlar rate). The average volume of deposits from the private sector decreased 3%. On a yearly basis, interest on deposits increased 40% or Ps.5.4 billion.
In FY2020 interest expense decreased 30% compared with FY2019.
| INTEREST EXPENSE | Change | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| In MILLION (Measuring Unit Current at EOP) | 4Q19 | 3Q20 | 4Q20 | FY2019 | FY2020 | QoQ | YoY | |||
| Deposits | ||||||||||
| Interest on checking accounts | 38 | 471 | 1,219 | 537 | 1,976 | 159 | % | 3108 | % | |
| Interest on saving accounts | 256 | 138 | 184 | 896 | 654 | 33 | % | -28 | % | |
| Interest on time deposits | 13,036 | 15,756 | 17,323 | 79,268 | 53,900 | 10 | % | 33 | % | |
| Interest on other financing from BCRA and financial inst. | 66 | 19 | 36 | 360 | 99 | 89 | % | -45 | % | |
| Repos | ||||||||||
| Other financial institutions | 46 | 2 | 87 | 458 | 196 | 4250 | % | 89 | % | |
| Interest on corporate bonds | 275 | 387 | 371 | 3,250 | 1,548 | -4 | % | 35 | % | |
| Interest on subordinated bonds | 609 | 615 | 608 | 2,319 | 2,398 | -1 | % | 0 | % | |
| Interest on other financial liabilities | 72 | 13 | 9 | 256 | 63 | -31 | % | -88 | % | |
| Total financial expense | 14,398 | 17,401 | 19,837 | 87,344 | 60,834 | 14 | % | 38 | % | |
| Expenses from interest on deposits | 13,330 | 16,365 | 18,726 | 80,702 | 56,529 | 14 | % | 40 | % |
All values are in US Dollars.
In 4Q20, the Bank’s net interest margin (including FX) was 16.3%, lower than the 17.1% posted in 3Q20 and the 33.6% posted in 4Q19.
In 4Q20 Net Interest Margin (excluding FX) was 15.4%, lower than the 16.2% posted in 3Q20 and than the 31.7% posted in 4Q19.
In 4Q20 Net Interest Margin (Pesos) was 17.7%, lower than the 18.6% posted in 4Q20 and than the 40.3% in 4Q19; meanwhile Net Interest Margin (USD) was 2%, higher than the 1.8% posted in 3Q20 and lower than the 3.5% registered in 4Q19.
| ASSETS<br> & LIABILITIES PERFORMANCE (AR$) | MACRO Consolidated | |||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| In<br> MILLION $ | 4Q19 | 3Q20 | 4Q20 | |||||||||||||
| (Measuring Unit Current<br> at EOP) | AVERAGE | REAL INT | NOMINAL | AVERAGE | REAL INT | NOMINAL | AVERAGE | REAL INT | NOMINAL | |||||||
| Yields & rates<br> in annualized nominal % | BALANCE | RATE | INT RATE | BALANCE | RATE | INT RATE | BALANCE | RATE | INT RATE | |||||||
| Interest-earning<br> assets | ||||||||||||||||
| Loans & Other<br> Financing | ||||||||||||||||
| Public Sector | 3,910 | 20.8 | % | 77.0 | % | 5,594 | 11.8 | % | 45.9 | % | 4,128 | 1.7 | % | 47.5 | % | |
| Financial<br> Sector | 4,522 | 5.1 | % | 54.0 | % | 2,145 | 7.6 | % | 40.4 | % | 1,872 | -5.3 | % | 37.4 | % | |
| Private Sector | 236,948 | 0.8 | % | 47.6 | % | 224,459 | 0.9 | % | 31.6 | % | 223,921 | -9.2 | % | 31.7 | % | |
| Other debt securities | ||||||||||||||||
| Central<br> Bank Securities (Leliqs) | 30,900 | 37.2 | % | 101.0 | % | 135,506 | 5.4 | % | 37.5 | % | 120,392 | -5.4 | % | 37.2 | % | |
| Government<br> & Private Securities | 28,285 | 27.8 | % | 87.2 | % | 80,350 | -0.6 | % | 29.7 | % | 100,270 | -8.5 | % | 32.7 | % | |
| Repos | 4,867 | 23.4 | % | 80.8 | % | 48,686 | -8.7 | % | 19.1 | % | 29,659 | -7.9 | % | 33.6 | % | |
| Total interest-earning<br> assets | 309,432 | 7.6 | % | 57.6 | % | 496,740 | 1.1 | % | 31.9 | % | 480,242 | -7.9 | % | 33.6 | % | |
| Non interest-earning<br> assets | 125,117 | 77,742 | 90,614 | |||||||||||||
| Total Average Assets | 434,549 | 478,349 | 516,031 | |||||||||||||
| Interest-bearing<br> liabilities | ||||||||||||||||
| Deposits | ||||||||||||||||
| Public Sector | 10,882 | -5.1 | % | 39.0 | % | 58,046 | -4.3 | % | 24.8 | % | 56,022 | -12.0 | % | 27.6 | % | |
| Private Sector | 164,942 | -12.0 | % | 28.9 | % | 249,636 | -7.9 | % | 20.2 | % | 249,236 | -14.8 | % | 23.6 | % | |
| BCRA and other financial<br> institutions | 296 | 32.3 | % | 93.8 | % | 454 | -9.2 | % | 18.4 | % | 546 | -12.5 | % | 27.0 | % | |
| Corporate bonds | 7,832 | -22.3 | % | 13.9 | % | 5,525 | -2.0 | % | 27.9 | % | 5,023 | -10.8 | % | 29.4 | % | |
| Repos | 353 | 3.6 | % | 51.7 | % | 55 | -12.2 | % | 14.5 | % | 1,137 | -10.1 | % | 30.4 | % | |
| Total int.-bearing<br> liabilities | 184,305 | -11.9 | % | 29.0 | % | 313,716 | -7.2 | % | 21.1 | % | 311,964 | -14.2 | % | 24.5 | % | |
| Total non int.-bearing<br> liabilities | 118,539 | 165,467 | 166,896 | |||||||||||||
| Total Average Liabilities | 302,844 | 479,183 | 478,860 | |||||||||||||
| Assets Performance | 44,888 | 39,852 | 40,535 | |||||||||||||
| Liabilities Performance | 13,475 | 16,677 | 19,180 | |||||||||||||
| Net Interest Income | 31,413 | 23,175 | 21,355 | |||||||||||||
| Total interest-earning<br> assets | 309,432 | 496,740 | 480,242 | |||||||||||||
| Net Interest Margin<br> (NIM) | 40.3 | % | 18.6 | % | 17.7 | % |
7
| 4Q20 Earnings Release |
| --- | | ASSETS<br> & LIABILITIES PERFORMANCE | MACRO Consolidated | | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | In<br> MILLION | | | | | | 3Q20 | | | | | 4Q20 | | | | | | (Measuring<br> Unit Current at EOP) | AVERAGE | REAL INT | | NOMINAL | | AVERAGE | REAL INT | | NOMINAL | | AVERAGE | REAL INT | | NOMINAL | | | Yields<br> & rates in annualized nominal % | BALANCE | RATE | | INT RATE | | BALANCE | RATE | | INT RATE | | BALANCE | RATE | | INT RATE | | | Interest-earning<br> assets | | | | | | | | | | | | | | | | | Cash and Deposits in Banks | 37,086 | -20.0 | % | 1.0 | % | 49,652 | 1.7 | % | 0.3 | % | 50,786 | -2.4 | % | 0.0 | % | | Loans & Other<br> Financing | | | | | | | | | | | | | | | | | Financial<br> Sector | 429 | -15.6 | % | 6.5 | % | 62 | 7.9 | % | 6.4 | % | 27 | 0.0 | % | 0.0 | % | | Private<br> Sector | 53,794 | -11.3 | % | 11.9 | % | 27,696 | 16.8 | % | 15.2 | % | 24,220 | 14.8 | % | 17.6 | % | | Other debt securities | | | | | | | | | | | | | | | | | Government<br> & Private Securities | 2,342 | -16.9 | % | 4.9 | % | 5,102 | 2.5 | % | 1.1 | % | 5,965 | 0.0 | % | 0.0 | % | | Total interest-earning<br> assets | 93,651 | -14.9 | % | 7.4 | % | 82,512 | 6.8 | % | 5.3 | % | 80,998 | 2.8 | % | 5.3 | % | | Non interest-earning<br> assets | 62,311 | | | | | 103,570 | | | | | 94,090 | | | | | | Total Average Assets | 155,962 | | | | | 186,082 | | | | | 175,088 | | | | | | Interest-bearing<br> liabilities | | | | | | | | | | | | | | | | | Deposits | | | | | | | | | | | | | | | | | Public<br> Sector | 1,457 | -18.6 | % | 2.7 | % | 864 | 1.9 | % | 0.5 | % | 822 | -1.9 | % | 0.5 | % | | Private<br> Sector | 72,567 | -19.6 | % | 1.4 | % | 56,049 | 2.1 | % | 0.7 | % | 47,641 | -2.1 | % | 0.3 | % | | BCRA and other financial<br> institutions | 3,517 | -16.1 | % | 5.9 | % | 569 | 7.1 | % | 5.6 | % | 563 | 2.4 | % | 4.9 | % | | Subordinated bonds | 34,554 | -15.2 | % | 7.0 | % | 34,299 | 8.6 | % | 7.1 | % | 33,856 | 4.6 | % | 7.1 | % | | Total int.-bearing<br> liabilities | 112,095 | -18.1 | % | 3.3 | % | 91,781 | 4.6 | % | 3.1 | % | 82,882 | 0.8 | % | 3.2 | % | | Total non int.-bearing<br> liabilities | 34,940 | | | | | 43,655 | | | | | 40,645 | | | | | | Total Average liabilities | 147,035 | | | | | 135,436 | | | | | 123,527 | | | | | | Assets Performance | | 1,748 | | | | | 1,104 | | | | | 1,072 | | | | | Liabilities Performance | | 923 | | | | | 724 | | | | | 657 | | | | | Net Interest Income | | 825 | | | | | 380 | | | | | 415 | | | | | Total interest-earning<br> assets | | 93,651 | | | | | 82,512 | | | | | 80,998 | | | | | Net Interest Margin<br> (NIM) | | 3.5 | % | | | | 1.8 | % | | | | 2.0 | % | | |
All values are in US Dollars.
In 4Q20 Banco Macro’s net fee income totaled Ps.5.7 billion, 4% or Ps.209 million lower than in 3Q20 and 3% or Ps.170 million lower than the same period of last year.
In FY2020 net fee income was 7% lower than in the previous year.
In the quarter, fee income totaled Ps.6.2 billion, 3% or Ps.190 million lower than in 3Q20. Fees charged on deposit accounts decreased 11% QoQ and were partially offset by increases in Credit Card fees (3%) and financial agent fees (9%). On a yearly basis, fee income decreased 4% or Ps.204 million.
In the quarter, total fee expense increased 4% or Ps.19 million. On a yearly basis, fee expenses decreased 13% or Ps.79 million.
| NET FEE INCOME | Change | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| In MILLION (Measuring Unit Current at EOP) | 4Q19 | 3Q20 | 4Q20 | FY2019 | FY2020 | QoQ | YoY | |||
| Fees charged on deposit accounts | 2,276 | 2,475 | 2,213 | 10,519 | 9,230 | -11 | % | -3 | % | |
| Credit card fees | 1,298 | 1,282 | 1,324 | 5,578 | 5,196 | 3 | % | 2 | % | |
| Corporate services fees | 763 | 614 | 617 | 2,904 | 2,422 | 0 | % | -19 | % | |
| ATM transactions fees | 554 | 570 | 564 | 1,486 | 2,141 | -1 | % | 2 | % | |
| Insurance fees | 374 | 400 | 410 | 1,592 | 1,601 | 2 | % | 10 | % | |
| Debit card fees | 324 | 388 | 413 | 1,348 | 1,479 | 6 | % | 27 | % | |
| Financial agent fees (Provinces) | 457 | 310 | 338 | 1,377 | 1,258 | 9 | % | -26 | % | |
| Credit related fees | 219 | 146 | 137 | 1,043 | 726 | -6 | % | -37 | % | |
| Mutual funds & securities fees | 87 | 168 | 149 | 372 | 544 | -11 | % | 71 | % | |
| AFIP & Collection services | 80 | 22 | 22 | 189 | 93 | 0 | % | -73 | % | |
| ANSES fees | 15 | 13 | 11 | 60 | 53 | -15 | % | -27 | % | |
| Total fee income | 6,447 | 6,388 | 6,198 | 26,468 | 24,743 | -3 | % | -4 | % | |
| Total fee expense | 617 | 519 | 538 | 2,192 | 2,047 | 4 | % | -13 | % | |
| Net fee income | 5,830 | 5,869 | 5,660 | 24,276 | 22,696 | -4 | % | -3 | % |
All values are in US Dollars.
8
| 4Q20 Earnings Release |
| --- |
In 4Q20 Net Income from financial assets and liabilities at fair value through profit or loss totaled a Ps.10.7 billion loss, higher than the Ps.8.4 billion loss posted in the previous quarter. This loss can be traced to a higher loss related to sale of financial assets at fair value as a consequence of the inflation adjustment applied to our Leliq holdings (higher inflation was observed during 4Q20) which was partially offset by a Ps.212 million increase in profit from government securities. On a yearly basis the loss related to Net income from financial assets and liabilities at fair value through profit or loss increased Ps.10.3 billion.
In FY2020 Net Income from financial assets and liabilities at fair value through profit or loss totaled a Ps.26.6 billion loss and was 40% smaller than the loss posted in FY2019.
| NET INCOME FROM FINANCIAL ASSETS AND LIABILITIES AT FAIR VALUE THROUGH PROFIT OR LOSS | Change | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| In MILLION (Measuring Unit Current at EOP) | 4Q19 | 3Q20 | 4Q20 | FY2019 | FY2020 | QoQ | YoY | |||
| Profit or loss from government securities | 2,780 | 2,885 | 3,097 | 2,570.0 | 10,077.0 | 7 | % | 11 | % | |
| Profit or loss from private securities | 375 | 304 | 135 | 1,134.0 | 848.0 | -56 | % | -64 | % | |
| Profit or loss from investment in derivative financing<br> instruments | 325 | 1 | 6 | 2,056.0 | 76.0 | 500 | % | -98 | % | |
| Profit or loss from other financial assets | 71 | -5 | 0 | 250.0 | 4.0 | -100 | % | -100 | % | |
| Profit or loss from investment in equity instruments | 20 | -119 | -44 | 2,592 | 49 | -63 | % | -320 | % | |
| Profit or loss from the sale of financial assets at fair value | -3,922 | -11,463 | -13,876 | -52,992 | -37,705 | 21 | % | 254 | % | |
| Income from financial assets at fair value through profit or loss | -351 | -8,397 | -10,682 | -44,390 | -26,651 | 27 | % | 2943 | % | |
| Profit or loss from derivative financing instruments | 0 | 0 | 0 | 0 | 0 | - | - | |||
| Income from financial liabilities at fair value through profit or loss | 0 | 0 | 0 | 0 | 0 | - | - | |||
| NET INCOME FROM FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS | -351 | -8,395 | -10,682 | -44,398 | -26,653 | 27 | % | 2943 | % |
All values are in US Dollars.
In the quarter Other Operating Income totaled Ps.1.4 billion, 9% or Ps.115 million higher than in 3Q20. On a yearly basis Other Operating Income decreased 9% or Ps.115 million.
In FY2020 Other Operating Income was 49% lower than in FY2019, due to the sale of the 51% stake in Prisma being recorded in 1Q19.
| OTHER OPERATING INCOME | Change | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| In MILLION (Measuring Unit Current at EOP) | 4Q19 | 3Q20 | 4Q20 | FY2019 | FY2020 | QoQ | YoY | |||
| Credit and debit cards | 60 | 31 | 40 | 300 | 123 | 29 | % | -33 | % | |
| Lease of safe deposit boxes | 157 | 216 | 197 | 584 | 780 | -9 | % | 25 | % | |
| Other service related fees | 379 | 485 | 342 | 1,689 | 1,870 | -29 | % | -10 | % | |
| Other adjustments and interest from other receivables | 259 | 209 | 230 | 1,072 | 899 | 10 | % | -11 | % | |
| Initial recognition of loans | 49 | -13 | -8 | 163 | 0 | - | - | |||
| Sale of property, plant and equipment | 0 | 6 | 2 | 0 | 8 | -67 | % | - | ||
| Others | 372 | 382 | 588 | 6,649 | 1,690 | 54 | % | 58 | % | |
| Other Operating Income | 1,276 | 1,316 | 1,391 | 10,457 | 5,370 | 6 | % | 9 | % |
All values are in US Dollars.
In 4Q20 Banco Macro’s administrative expenses plus employee benefits totaled Ps.10.8 billion, 1% or Ps.67 million higher than the previous quarter, due to higher administrative expenses (3%). On a yearly basis administrative expenses plus employee benefits decreased 8% or Ps.968 million.
In FY2020 administrative expenses plus employee benefits decreased 11% compared to FY2019, showing the strict cost control policies adopted by the Bank’s senior management.
9
| 4Q20 Earnings Release |
| --- |
Employee benefits decreased 1% or Ps.46 million QoQ (remunerations were 4% lower but were offset by higher compensation and which increased 35% QoQ). On a yearly basis Employee benefits decreased 3% or Ps.201 million.
In 4Q20 administrative expenses increased 3% or Ps.113 million, due to higher Directors and statutory auditors fees (106% or Ps.311 million) and higher advertising and publicity fees (110% or Ps.92 million) related to legal expenses which were partially offset by lower (28% or Ps.371 million) other expenses.
In 4Q20, the efficiency ratio reached 50.7%, deteriorating from the 45.9% posted in 3Q20 and similar to the 50.7% posted a year ago. In 4Q20 expenses (employee benefits + G&A expenses + depreciation and impairment of assets) increased 1%, while income (net interest income + net fee income + differences in quoted prices of gold and foreign currency + other operating income + net income from financial assets at fair value through profit or loss – (Turnover Tax + Insurance on deposits)) decreased 16% compared to 3Q20.
| PERSONNEL & ADMINISTRATIVE EXPENSES | Change | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| In MILLION (Measuring Unit Current at EOP) | 4Q19 | 3Q20 | 4Q20 | FY2019 | FY2020 | QoQ | YoY | ||||||
| Employee benefits | 7,057 | 6,902 | 6,856 | 28,865 | 26,599 | -1 | % | -3 | % | ||||
| Remunerations | 5,121 | 5,141 | 4,943 | 19,958 | 19,678 | -4 | % | -3 | % | ||||
| Social Security Contributions | 1,162 | 1,140 | 1,139 | 5,858 | 4,413 | 0 | % | -2 | % | ||||
| Compensation and bonuses | 586 | 458 | 619 | 2,382 | 1,950 | 35 | % | 6 | % | ||||
| Employee services | 188 | 163 | 155 | 667 | 558 | -5 | % | -18 | % | ||||
| Administrative Expenses | 4,664 | 3,784 | 3,897 | 17,427 | 14,540 | 3 | % | -16 | % | ||||
| Taxes | 500 | 451 | 482 | 2,063 | 1,854 | 7 | % | -4 | % | ||||
| Maintenance, conservation fees | 697 | 565 | 644 | 2,336 | 2,270 | 14 | % | -8 | % | ||||
| Directors & statutory auditors fees | 799 | 294 | 604 | 2,820 | 1,623 | 105 | % | -24 | % | ||||
| Security services | 405 | 345 | 340 | 1,612 | 1,415 | -1 | % | -16 | % | ||||
| Electricity & Communications | 408 | 380 | 364 | 1,614 | 1,529 | -4 | % | -11 | % | ||||
| Other professional fees | 359 | 229 | 213 | 1,378 | 888 | -7 | % | -41 | % | ||||
| Rental agreements | 58 | 11 | 18 | 307 | 91 | 64 | % | -69 | % | ||||
| Advertising & publicity | 218 | 84 | 177 | 644 | 432 | 111 | % | -19 | % | ||||
| Personnel allowances | 66 | 27 | 33 | 270 | 128 | 22 | % | -50 | % | ||||
| Stationary & Office Supplies | 28 | 24 | 21 | 139 | 91 | -13 | % | -25 | % | ||||
| Insurance | 42 | 48 | 46 | 165 | 171 | -4 | % | 10 | % | ||||
| Hired administrative services | 1 | 2 | 0 | 6 | 3 | -100 | % | -100 | % | ||||
| Other | 1,083 | 1,324 | 955 | 4,073 | 4,045 | -28 | % | -12 | % | ||||
| Total Administrative Expenses | 11,721 | 10,686 | 10,753 | 46,292 | 41,139 | 1 | % | -8 | % | ||||
| Total Employees | 8,768 | 8,651 | 8,561 | ||||||||||
| Branches | 463 | 463 | 463 | ||||||||||
| Efficiency ratio | 34.5 | % | 57.1 | % | 71.5 | % | |||||||
| Accumulated efficiency ratio | 50.7 | % | 45.9 | % | 50.7 | % |
All values are in US Dollars.
In 4Q20, Other Operating Expenses totaled Ps.5 billion, decreasing 2% or Ps.120 million QoQ, due to lower Turnover Tax (6% or Ps.172 million). On a yearly basis Other Operating Expenses decreased 24% or Ps.1.5 billion.
In FY2020 Other Operating Expenses were 32% lower than in FY2019.
10
| 4Q20 Earnings Release |
| --- | | OTHER OPERATING EXPENSES | | | | | | Change | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | In MILLION (Measuring Unit Current at EOP) | 4Q19 | 3Q20 | 4Q20 | FY2019 | FY2020 | | QoQ | | YoY | | | Turnover Tax | 3,702 | 2,775 | 2,603 | 13,929 | 11,255 | | -6 | % | -30 | % | | Other provision charges | 433 | 292 | 216 | 1,949 | 1,122 | | -26 | % | -50 | % | | Deposit Guarantee Fund Contributions | 157 | 205 | 210 | 784 | 740 | | 2 | % | 34 | % | | Donations | 189 | 0 | 4 | 381 | 169 | | - | | -98 | % | | Insurance claims | 21 | 14 | 11 | 81 | 63 | | -21 | % | -48 | % | | Initial loan recognition | 0 | 0 | 48 | 0 | 48 | | - | | - | | | Others | 2,041 | 1,823 | 1,897 | 12,963 | 7,074 | | 4 | % | -7 | % | | Other Operating Expenses | 6,543 | 5,109 | 4,989 | 30,088 | 20,471 | | -2 | % | -24 | % |
All values are in US Dollars.
In 4Q20 the result from the net monetary position (excluding Leliqs) totaled a Ps.7.1 billion gain, Ps.1.7 billion higher than the Ps.5.4 billion gain posted in 3Q20. This result is explained by the breakdown of monetary assets and monetary liabilities and their behavior during the quarter; an increase in monetary assets (loans, and government securities) and a bigger increase in monetary liabilities (deposits), and higher inflation observed during the quarter (368 b.p. above 3Q20 level, up from 7.65% to 11.33%) generating a positive result. If we include the inflation adjustment on our Leliqs holdings and Other government securities (Ps.43.6 billion loss in FY2020) the total result from the monetary position (including Leliqs and Other government securities) would be a Ps.30.2 billion loss in FY2020.
In FY2020 Banco Macro's effective income tax rate 28.8%, lower than the 39.1% effective tax rate of FY2019.
| RESULT FROM NET MONETARY POSITION | BANCO MACRO | ||||||||
|---|---|---|---|---|---|---|---|---|---|
| In MILLION $ (Measuring Unit Current at EOP) | 1Q20 | 2Q20 | 3Q20 | 4Q20 | FY2020 | ||||
| Result from Net Monetary Position (Consolidated) | 373 | 533 | 5,384 | 7,058 | 13,348 | ||||
| Change in Consumer Price Index | 7.80 | % | 5.37 | % | 7.65 | % | 11.33 | % | |
| RECPPC MONETARY ASSETS & LIABILITIES (*) | |||||||||
| Monetary Assets (MA) | |||||||||
| Cash and deposits in banks | -9,219 | -6,916 | -9,010 | -11,441 | -36,586 | ||||
| Government and private securities | -2,009 | -1,359 | -3,056 | -9,829 | -16,253 | ||||
| Loans | -20,838 | -14,526 | -19,334 | -27,366 | -82,063 | ||||
| Other financial assets | -969 | -2,832 | -6,099 | -6,622 | -16,523 | ||||
| Other receivables | -21 | -11 | 0 | -14 | -46 | ||||
| Investment in other companies | -700 | -473 | -708 | -1,029 | -2,911 | ||||
| Others | -27 | -22 | -37 | -26 | -112 | ||||
| Total RECPPC Monetary Assets | -33,783 | -26,139 | -38,244 | -56,327 | -154,494 | ||||
| Monetary Liabilities (ML) | |||||||||
| Deposits | 27,222 | 21,429 | 35,959 | 51,353 | 135,962 | ||||
| Other financial liabilities | 2,662 | 1,721 | 2,504 | 4,284 | 11,171 | ||||
| Other liabilities | 1,730 | 1,682 | 2,545 | 3,975 | 9,932 | ||||
| Subordinated Corporte Bonds | 2,455 | 1,766 | 2,530 | 3,664 | 10,414 | ||||
| Others | 11 | 12 | 20 | 9 | 52 | ||||
| Provisions | 150 | 104 | 140 | 168 | 562 | ||||
| Total RECPPC Monetary Liabilities | 34,229 | 26,713 | 43,698 | 63,453 | 168,094 | ||||
| Result from Net Monetary Position | 446 | 574 | 5,454 | 12,652 | 13,600 | ||||
| RECPPC Leliqs | -7,113 | -4,758 | -9,270 | -12,815 | -33,956 | ||||
| RECPPC Other Government Securities (FVPL) | -3,713 | ||||||||
| RECPPC Other Government Securities (OCI) | -5,910 | ||||||||
| Result from Net Monetary Position (inc. Leliqs) | -7,707 | -3,627 | -4,331 | -9,654 | -30,231 |
RECPPC: Result from changes in purchasing power of currency
(*)Banco Macro, not consolidated
11
| 4Q20 Earnings Release |
| --- |
Financial Assets
Privatesector financing
The volume of “core” financing to the private sector (including loans, financial trust and leasing portfolio) totaled Ps.252.5 billion, decreasing 2% or Ps.6.1 billion QoQ and 13% or Ps.36.7 billion YoY as a consequence of the economic recession that affected Argentina during 2020.
Within commercial loans, Documents stand out with a 10% or Ps.2.4 billion increase QoQ (mostly due to loans extended to SMEs) meanwhile Others decreased 20% or Ps.9.7 billion.
Within consumer lending credit card loans increased 9% or Ps.5.3 billion QoQ.
Within private sector financing, peso financing decreased 1% or Ps.3.4 billion, while US dollar financing decreased 19% or USD 64 million.
As of 4Q20, Banco Macro´s market share over private sector loans was 7.1%.
| FINANCING TO THE PRIVATE SECTOR | Change | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| In MILLION (Measuring Unit Current at EOP) | 4Q19 | 3Q20 | 4Q20 | QoQ | YoY | ||||||
| Overdrafts | 50,561 | 19,136 | 17,075 | -11 | % | -66 | % | ||||
| Discounted documents | 26,761 | 23,780 | 26,172 | 10 | % | -2 | % | ||||
| Mortgage loans | 17,343 | 15,198 | 13,483 | -11 | % | -22 | % | ||||
| Pledged loans | 5,455 | 4,028 | 3,259 | -19 | % | -40 | % | ||||
| Personal loans | 75,678 | 67,475 | 67,095 | -1 | % | -11 | % | ||||
| Credit Card loans | 57,393 | 58,578 | 63,876 | 9 | % | 11 | % | ||||
| Others | 30,831 | 49,095 | 39,411 | -20 | % | 28 | % | ||||
| Interest | 21,064 | 19,327 | 19,761 | 2 | % | -6 | % | ||||
| Total loan portfolio | 285,086 | 256,617 | 250,132 | -3 | % | -12 | % | ||||
| Total loans in Pesos | 233,918 | 231,669 | 227,868 | -2 | % | -3 | % | ||||
| Total loans in | 51,168 | 24,948 | 22,264 | -11 | % | -56 | % | ||||
| Financial trusts | 2,637 | 405 | 569 | 40 | % | -78 | % | ||||
| Leasing | 312 | 149 | 119 | -20 | % | -62 | % | ||||
| Others | 1,171 | 1,383 | 1,638 | 18 | % | 40 | % | ||||
| Total other financing | 4,120 | 1,937 | 2,326 | 20 | % | -44 | % | ||||
| Total other financing in Pesos | 2,716 | 889 | 1,294 | 46 | % | -52 | % | ||||
| Total other financing in | 1,404 | 1,048 | 1,032 | -2 | % | -26 | % | ||||
| Total financing to the private sector | 289,206 | 258,554 | 252,458 | -2 | % | -13 | % | ||||
| EOP FX (Pesos per ) | 59.8950 | 76.1750 | 84.1450 | 10 | % | 40 | % | ||||
| financing / Financing to the private sector | 18 | % | 10 | % | 9 | % |
All values are in US Dollars.
Public Sector Assets
In 4Q20, the Bank’s public sector assets (excluding LELIQs) to total assets ratio was 17.5%, slightly lower than the 17.7% registered in the previous quarter, and higher than the 6.3% posted in 3Q19.
In 4Q20, a 9% or Ps.12.1 billion decrease in Leliqs and a 6% or Ps.8.7 billion decrease in Government Securities stand. Since 2Q20 the Bank decided to invest in CER adjustable and Badlar bonds.
12
| 4Q20 Earnings Release |
| --- | | PUBLIC SECTOR ASSETS | | | | | | | Change | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | In MILLION (Measuring Unit Current at EOP) | 4Q19 | | 3Q20 | | 4Q20 | | | QoQ | | YoY | | | Leliqs | 62,532 | | 140,756 | | 128,676 | | | -9 | % | 106 | % | | Other | 29,026 | | 139,650 | | 130,981 | | | -6 | % | 351 | % | | Government securities | 91,558 | | 280,406 | | 259,657 | | | -7 | % | 184 | % | | Provincial loans | 8,591 | | 4,330 | | 3,443 | | | -20 | % | -60 | % | | Loans | 8,591 | | 4,330 | | 3,443 | | | -20 | % | -60 | % | | Purchase of government bonds | 155 | | 155 | | 153 | | | -1 | % | -1 | % | | Other receivables | 155 | | 155 | | 153 | | | -1 | % | -1 | % | | TOTAL PUBLIC SECTOR ASSETS | 100,304 | | 284,891 | | 263,253 | | | -8 | % | 162 | % | | TOTAL PUBLIC SECTOR ASSETS (net of<br> LEBAC/NOBAC/LELIQ) | 37,772 | | 144,135 | | 134,577 | | | -7 | % | 256 | % | | TOTAL PUBLIC SECTOR ASSETS (net of<br> LEBAC/NOBAC/LELIQ)/TOTAL ASSETS | 6.3 | % | 17.7 | % | 17.5 | % | | | | | |
All values are in US Dollars.
Funding
Deposits
Banco Macro’s deposit base totaled Ps.488.7 billion in 4Q20, decreasing 11% or Ps.59.8 billion QoQ and a 37% or Ps.130.8 billion increase YoY and representing 79% of the Bank’s total liabilities.
On a quarterly basis, both public and private sector deposits decreased with a 37% or Ps.44 billion decrease and a 4% or Ps.15.9 billion decrease respectively.
The decrease in private sector deposits was led by time deposits, which decreased 8% or Ps.18.8 billion, while demand deposits increased 2% or Ps.4.2 billion QoQ.
Within private sector deposits, peso deposits decreased 1% or Ps.3.9 billion, while US dollar deposits decreased 22% or USD 249 million.
In FY2020, within private sector deposits, time deposits increased 14% while demand deposits increased 41%.
As of 4Q20, Banco Macro´s market share over private sector deposits was 6.4%.
| DEPOSITS | Change | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| In MILLION (Measuring Unit Current at EOP) | 4Q19 | 3Q20 | 4Q20 | QoQ | YoY | ||||||
| Public sector | 23,907 | 117,601 | 73,565 | -37 | % | 208 | % | ||||
| Financial sector | 428 | 491 | 696 | 42 | % | 63 | % | ||||
| Private sector | 333,531 | 430,427 | 414,480 | -4 | % | 24 | % | ||||
| Checking accounts | 54,625 | 79,829 | 65,401 | -18 | % | 20 | % | ||||
| Savings accounts | 123,518 | 119,956 | 138,553 | 16 | % | 12 | % | ||||
| Time deposits | 144,416 | 221,738 | 202,968 | -8 | % | 41 | % | ||||
| Other | 10,972 | 8,904 | 7,558 | -15 | % | -31 | % | ||||
| Total | 357,866 | 548,519 | 488,741 | -11 | % | 37 | % | ||||
| Pesos | 249,386 | 460,840 | 411,641 | -11 | % | 65 | % | ||||
| Foreign Currency (Pesos) | 108,480 | 87,679 | 77,100 | -12 | % | -29 | % | ||||
| EOP FX (Pesos per ) | 59.8950 | 76.1750 | 84.1450 | 10 | % | 40 | % | ||||
| Foreign Currency () | 1,811 | 1,151 | 916 | -20 | % | -49 | % | ||||
| Deposits / Total Deposits | 30 | % | 16 | % | 16 | % |
All values are in US Dollars.
13
| 4Q20 Earnings Release |
| --- |
Banco Macro’s transactional deposits represent approximately 48% of its total deposit base as of 3Q20. These accounts are low cost and are not sensitive to interest rate increases.
Othersources of funds
In 4Q20, the total amount of other sources of funds decreased 1% or Ps.2.3 billion compared to 3Q20. On a yearly basis other sources of funds increased 1% or Ps.1.8 billion. In 4Q20 Shareholder’s Equity decreased 1% or Ps.1 billion; also in the quarter subordinated corporate bonds decreased 2% or Ps.801 million while non subordinated corporate bonds decreased 12% or Ps.660 million.
The decrease in Shareholders’ equity is explained by the inflation adjustment applied to Other government securities (not Leliqs) that are registered in Other Comprehensive Income that totaled a Ps.3.9 billion loss and a Ps.4.1 billion decrease in reserved earnings due to the supplementary dividend (Ps.3.8 billion) approved in October by the Special Shareholders’ meeting.
| OTHER SOURCES OF FUNDS | Change | |||||||
|---|---|---|---|---|---|---|---|---|
| In MILLION (Measuring Unit Current at EOP) | 4Q19 | 3Q20 | 4Q20 | QoQ | YoY | |||
| Central Bank of Argentina | 37 | 22 | 20 | -9 | % | -46 | % | |
| Banks and international institutions | 2,502 | 447 | 355 | -21 | % | -86 | % | |
| Financing received from Argentine financial institutions | 517 | 296 | 543 | 83 | % | 5 | % | |
| Subordinated corporate bonds | 33,098 | 35,101 | 34,300 | -2 | % | 4 | % | |
| Corporate bonds | 7,522 | 5,587 | 4,927 | -12 | % | -34 | % | |
| Shareholders' equity | 142,753 | 149,092 | 148,079 | -1 | % | 4 | % | |
| Total other source of funds | 186,429 | 190,545 | 188,448 | -1 | % | 1 | % |
All values are in US Dollars.
Liquid Assets
In 4Q20, the Bank’s liquid assets amounted to Ps.440.5 billion, showing a 8% or Ps.38 billion decrease QoQ, and an 84% or Ps.201.5 billion increase on a yearly basis.
In 4Q20, LELIQs own portfolio decreased 9% or Ps.12.1 billion. Net Repos decreased 35% or Ps.21.3 billion.
In 4Q20 Banco Macro’s liquid assets to total deposits ratio reached 90%.
| LIQUID ASSETS | Change | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| In MILLION (Measuring Unit Current at EOP) | 4Q19 | 3Q20 | 4Q20 | QoQ | YoY | ||||||
| Cash | 137,066 | 125,726 | 129,967 | 3 | % | -5 | % | ||||
| Guarantees for compensating chambers | 10,127 | 12,167 | 12,041 | -1 | % | 19 | % | ||||
| Call | 136 | 167 | 50 | -70 | % | -63 | % | ||||
| Leliq own portfolio | 62,532 | 140,756 | 128,676 | -9 | % | 106 | % | ||||
| Net Repos | 116 | 60,084 | 38,803 | -35 | % | 33351 | % | ||||
| Other government & private securities | 29,026 | 139,650 | 130,981 | -6 | % | 351 | % | ||||
| Total | 239,003 | 478,550 | 440,518 | -8 | % | 84 | % | ||||
| Liquid assets to total deposits | 67 | % | 87 | % | 90 | % |
All values are in US Dollars.
14
| 4Q20 Earnings Release |
| --- |
Solvency
Banco Macro continued showing high solvency levels in 4Q20 with an integrated capital (RPC) of Ps.173.5 billion over a total capital requirement of Ps.41.4 billion. Banco Macro’s excess capital in 4Q20 was 319% or Ps.132.1 billion. Since the beginning of 2020 and due to inflation adjustments Equity has increased significantly leading to higher solvency levels (shown under Ordinary Capital Level 1).
The regulatory capital ratio (as a percentage of risk-weighted assets- RWA) was 34.2% in 4Q20; TIER1 Ratio stood at 27.1%.
The Bank’s aim is to make the best use of this excess capital.
| MINIMUM CAPITAL REQUIREMENT | MACRO Consolidated | Change | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| In MILLION $ | 4Q19(¹) | 3Q20(²) | 4Q20(²) | QoQ | YoY | ||||||||||
| Credit risk requirement | 21,404 | 23,972 | 28,025 | 17 | % | 31 | % | ||||||||
| Market risk requirement | 591 | 1,172 | 1,556 | 33 | % | 163 | % | ||||||||
| Operational risk requirement | 7,563 | 10,604 | 11,777 | 11 | % | 56 | % | ||||||||
| Total capital requirements | 29,558 | 35,749 | 41,358 | 16 | % | 40 | % | ||||||||
| Ordinary Capital Level 1 (COn1) | 83,090 | 131,531 | 146,350 | 11 | % | 76 | % | ||||||||
| Deductible concepts Level 1 (COn1) | -10,637 | -11,768 | -9,150 | -22 | % | -14 | % | ||||||||
| Capital Level 2 (COn2) | 26,113 | 32,854 | 36,248 | 10 | % | 39 | % | ||||||||
| Integrated capital - RPC (i) | 98,566 | 152,618 | 173,449 | 14 | % | 76 | % | ||||||||
| Excess capital | 69,008 | 116,869 | 132,091 | 13 | % | 91 | % | ||||||||
| Risk-weighted assets - RWA (ii) | 361,678 | 438,129 | 506,766 | 16 | % | 40 | % | ||||||||
| Regulatory Capital ratio [(i)/(ii)] | 27.3 | % | 34.8 | % | 34.2 | % | |||||||||
| Ratio TIER 1 [Capital Level 1/RWA] | 20.0 | % | 27.3 | % | 27.1 | % |
RWA - (ii): Risk Weighted Assets,considering total capital requirements.
(¹) Figueres are not inflation adjusted. Expressed in Pesos current at end of each quarter
(²) Figures are inflaiton adjusted. Expressed in Pesos current at EOP
Asset Quality
In 4Q20, Banco Macro’s non-performing to total financing ratio (under Central Bank rules) reached a level of 0.78%, down from 1.14% in 3Q20, and down from the 2.07% posted in 4Q19.
Consumer portfolio non-performing loans improved 23b.p. (down to 0.73% from 0.96%) while Commercial portfolio non-performing loans improved 65b.p. in 4Q20 (down to 0.9% from 1.55%).
The improvement in Commercial non-performing loans can be traced to the write off of a specific agro exporter client.
Consumer portfolio non-performing loans ratio continues to be positively impacted by recent measures adopted by the Central Bank of Argentina in the current Covid19 pandemic context, particularly the 60 day grace period that was added to debtor classification before a loan is considered as non performing and the possibility to refinance outstanding credit card balances.
The coverage ratio (measured as total allowances under Expected Credit Losses over Non Performing loans under Central Bank rules) improved to 479.2% in 4Q20. Write-offs over total loans totaled 0.37%.
The Bank is committed to continue working in this area to maintain excellent asset quality standards.
15
| 4Q20 Earnings Release |
| --- | | ASSET QUALITY | | | | | | | Change | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | In MILLION (Measuring Unit Current at EOP) | 4Q19 | | 3Q20 | | 4Q20 | | | QoQ | | YoY | | | Commercial portfolio | 141,754 | | 84,647 | | 76,453 | | | -10 | % | -46 | % | | Non-performing | 1,892 | | 1,314 | | 690 | | | -48 | % | -64 | % | | Consumer portfolio | 173,538 | | 193,376 | | 193,951 | | | 0 | % | 12 | % | | Non-performing | 4,643 | | 1,856 | | 1,409 | | | -24 | % | -70 | % | | Total portfolio | 315,291 | | 278,023 | | 270,405 | | | -3 | % | -14 | % | | Non-performing | 6,535 | | 3,170 | | 2,099 | | | -34 | % | -68 | % | | Commercial non-perfoming ratio | 1.33 | % | 1.55 | % | 0.90 | % | | | | | | | Consumer non-perfoming ratio | 2.68 | % | 0.96 | % | 0.73 | % | | | | | | | Total non-performing/ Total portfolio | 2.07 | % | 1.14 | % | 0.78 | % | | | | | | | Total allowances | 6,930 | | 9,602 | | 10,056 | | | 5 | % | 45 | % | | Coverage ratio w/allowances | 106.04 | % | 302.90 | % | 479.20 | % | | | | | | | Write Offs | 839 | | 702 | | 993 | | | 41 | % | 18 | % | | Write Offs/ Total portfolio | 0.27 | % | 0.25 | % | 0.37 | % | | | | | |
All values are in US Dollars.
Expected Credit Losses (E.C.L) (I.F.R.S.9)
The Bank records an allowance for expected credit losses for all loans and other debt financial assets not held at fair value through profit or loss, together with loan commitments and financial guarantee contracts, in this section all referred to as ‘financial instruments’. Equity instruments are not subject to impairment under IFRS 9. The ECL allowance is based on the credit losses expected to arise over the life of the asset (the lifetime expected credit loss), unless there has been no significant increase in credit risk since origination, in which case, the allowance is based on the 12 months expected credit loss.(For further information please see our 2019 20-F)
The table below shows, under the E.C.L model, the allowances for credit losses with their respective classification in stages, and the impact the transition to I.F.R.S. 9 has on earnings.
16
| 4Q20 Earnings Release |
| --- |
CER Exposure and Foreign Currency Position
| CER<br> EXPOSURE | Change | |||||||
|---|---|---|---|---|---|---|---|---|
| In<br> MILLION (Measuring Unit Current at EOP) | 4Q19 | 3Q20 | 4Q20 | QoQ | YoY | |||
| CER<br> adjustable ASSETS | ||||||||
| Government<br> Securities | 5,595 | 49,217 | 51,196 | 4 | % | 815 | % | |
| Loans<br> (*) | 19,795 | 19,211 | 18,644 | -3 | % | -6 | % | |
| Private<br> sector loans | 9,488 | 7,731 | 7,013 | -9 | % | -26 | % | |
| Mortgage<br> loans (UVA adjusted) | 10,307 | 11,476 | 11,624 | 1 | % | 13 | % | |
| Other<br> loans | 0 | 4 | 7 | 75 | % | - | ||
| Total<br> CER adjustable assets | 25,390 | 68,428 | 69,840 | 2 | % | 175 | % | |
| CER<br> adjustable LIABILITIES | ||||||||
| Deposits<br> (*) | 560 | 1,063 | 1,379 | 30 | % | 146 | % | |
| UVA<br> Unemployment fund | 758 | 773 | 775 | 0 | % | 2 | % | |
| Total<br> CER adjustable liabilities | 1,318 | 1,836 | 2,154 | 17 | % | 63 | % | |
| NET<br> CER EXPOSURE | 24,072 | 66,592 | 67,686 | 2 | % | 181 | % |
All values are in US Dollars.
(*)Includes Loans &Time Deposits CER adjustable (UVAs)
| FOREIGN<br> CURRENCY POSITION | Change | |||||||
|---|---|---|---|---|---|---|---|---|
| In<br> MILLION (Measuring Unit Current at EOP) | 4Q19 | 3Q20 | 4Q20 | QoQ | YoY | |||
| Cash<br> and deposits in Banks | 96,599 | 102,811 | 105,721 | 3 | % | 9 | % | |
| Cash | 14,862 | 8,592 | 9,805 | 14 | % | -34 | % | |
| Central<br> Bank of Argentina | 46,377 | 64,816 | 41,373 | -36 | % | -11 | % | |
| Other<br> financial institutions local and abroad | 35,354 | 29,398 | 54,537 | 86 | % | 54 | % | |
| Others | 5 | 5 | 5 | 0 | % | 0 | % | |
| Net<br> Income from financial instruments at fair value through P&L | 337 | 5 | 6 | 20 | % | -98 | % | |
| Other<br> financial assets | 5,105 | 5,086 | 4,977 | -2 | % | -3 | % | |
| Loans<br> and other financing | 53,059 | 26,012 | 23,291 | -10 | % | -56 | % | |
| Other<br> financial institutions | 828 | 43 | 21 | -51 | % | -97 | % | |
| Non<br> financial private sector & foreign residents | 52,231 | 25,969 | 23,270 | -10 | % | -55 | % | |
| Other<br> debt securities | 1,178 | 5,042 | 5,890 | 17 | % | 400 | % | |
| Guarantees<br> received | 3,937 | 1,755 | 1,822 | 4 | % | -54 | % | |
| Investment<br> in equity instruments | 0 | 0 | 0 | 0 | % | 0 | % | |
| Investment<br> in associates and joint ventures | 14 | 9 | 12 | 33 | % | -14 | % | |
| Total<br> Assets | 160,230 | 140,721 | 141,719 | 1 | % | -12 | % | |
| Deposits | 108,480 | 87,679 | 77,100 | -12 | % | -29 | % | |
| Non<br> financial public sector | 5,432 | 2,824 | 4,198 | 49 | % | -23 | % | |
| Financial<br> sector | 313 | 438 | 574 | 31 | % | 83 | % | |
| Non<br> financial private sector & foreign residents | 102,734 | 84,417 | 72,328 | -14 | % | -30 | % | |
| Other<br> liabilities from financial intermediation | 7,145 | 6,333 | 18,449 | 191 | % | 158 | % | |
| Financing<br> from the Central Bank and other fin. Inst | 2,785 | 601 | 470 | -22 | % | -83 | % | |
| Subordinated<br> corporate bonds | 33,098 | 35,101 | 34,300 | -2 | % | 4 | % | |
| Other<br> non financial liabilities | 34 | 62 | 20 | -68 | % | -41 | % | |
| Total<br> Liabilities | 151,541 | 129,776 | 130,340 | 0 | % | -14 | % | |
| NET<br> FX POSITION (Pesos) | 8,689 | 10,945 | 11,379 | 4 | % | 31 | % | |
| EOP<br> FX (Pesos per ) | 59.8950 | 76.1750 | 84.1450 | 10 | % | 40 | % | |
| NET<br> FX POSITION () | 145 | 144 | 135 | -6 | % | -7 | % |
All values are in US Dollars.
17
| 4Q20 Earnings Release |
| --- |
Relevantand Recent Events
| · | Interest Payment Class C Peso denominated Notes. In January 2021, the Bank paid quarterly<br> interest on Class C Peso denominated notes in the amount of Ps.210,335,089.47. |
|---|---|
| · | Mr. Delfín Jorge Ezequiel Carballo- Appointed Chairman of the Board of Banco Macro. On November 30^th^, 2020 Mr. Delfín J. Ezequiel Carballo was appointed<br> Chairman of the Board of Directors, while Jorge Pablo Brito was appointed Vice Chairman<br> of the Board. |
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| · | Moody’s Investor Services- Ratings. In December Moody’s Investors Services informed<br> that, in line with changes in their methodology, updated the rating of Banco Macro S.A.<br> (global scale) Senior Unsecured debt Series B notes from Ca to Caa3. |
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| · | **Covid-19:**In early March 2020, the World Health Organization recognized Coronavirus (Covid-19) as a pandemic that is severely affecting<br>almost all countries around the world. The spread of this disease globally has forced the authorities to take drastic health and<br>financial measures to contain and mitigate its effects on health and economic activity. Particularly in the Argentine Republic,<br>on March 19, 2020, through Decree No. 297/2020, the Government established the “social, preventive and compulsory isolation”<br>measure until March 31, 2020, which was then extended until June 7, 2020. Along with health protection rules, tax and financial<br>measures were taken to mitigate the impact on the economy associated with the pandemic, including public direct financial assistance<br>measures for part of the population, the establishment of financial and fiscal facilities for both individuals and companies.<br>As regards measures related to the Entity’s business, the BCRA established maturities extensions, froze the mortgage loan<br>installments and encouraged banks to lend to companies at reduced rates. In addition, the distribution of dividends of the finance<br>institutions was suspended until June 30, 2020. In addition, in the mandatory quarantine context, the BCRA ruled that financial<br>institutions would not be able to open their branches for public service during that period and should continue to provide services<br>to users remotely. They could also trade with each other and their clients in the exchange market remotely. During quarantine,<br>remote trading of stock exchanges and capital markets authorized by the CNV, the custodians and capital market agents registered<br>with the CNV was admitted. In view of the extension of mandatory quarantine, the BCRA then decided that financial institutions<br>would open their branches from Friday, April 3, 2020 for public attention through previous appointments obtained by the Bank’s<br>website. The Bank is developing its activities under the conditions detailed above, giving priority to the compliance of social<br>isolation measures by its employees, with the primary objective of taking care of the public health and well-being of all its<br>stakeholders (employees, suppliers, customers, among others). To this end, it has put in place contingency procedures and has<br>enabled its staff to carry out their tasks remotely. From a commercial point of view, it has emphasized maintaining a close relationship<br>with its customers, trying to respond to their needs at this difficult time, sustaining all virtual channels of care to ensure<br>operability and good response to requirements, monitoring compliance with their business obligations and monitoring the active<br>portfolio in order to detect possible delays in collection and set new conditions for them. Considering the size of the abovementioned<br>situation, the Bank’s Management estimates that this situation could have an impact on its operations and the financial<br>situation and the results of the Bank, which are under analysis, and will ultimately, depend on the extent an duration of the<br>health emergency and the success of the measures taken. |
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18
| 4Q20 Earnings Release |
| --- |
RegulatoryChanges
| · | COVID-19. In December 2020 through Communication “A” 7107 the BCRA extended until<br> March 31, 2021, the regulation stating that financial institutions cannot charge fees<br> for transactions done through ATMs (previously until June 30 and extended until September<br> 30). It also extended the regulation that financial institutions cannot charge punitive<br> interest over unpaid credits, and ratifies unpaid instalments deferral to maturity, considering<br> accrual of a compensatory interest rate. Debtors Classification: The Central Bank established<br> rules regarding the criteria for debtor classification and provisioning until December<br> 31, 2020, then these rules were extended through Communication “A” 7181 until<br> March 31, 2021. These rules provide an additional 60-day period of non-payment before<br> a loan is required to be classified as non-performing and include all financings to commercial<br> portfolio clients and loans granted for consumption or housing purposes. At the same<br> time, the Central Bank ruled the suspension of the mandatory reclassification of debtors<br> who are non-performing in other banks. |
|---|---|
| · | Inflation Adjustment (Other Comprehensive Income) In January 2021 through Communication “A”<br> 7221 with starting in fiscal year 2021, the monetary result accrued with respect to items<br> of a monetary nature that are measured at fair value with changes in Other Comprehensive<br> Income (OCI), must be recorded in results for the period/fiscal year. Consequently, the<br> unallocated results must be adjusted and recorded in the account "Adjustments to<br> results from previous years" at the beginning of fiscal year 2021, in order to incorporate<br> the accumulated monetary results of the aforementioned items as of that date that will<br> be recorded in OCI. All the comparative information for the next periods/fiscal years<br> must consider this change in the exposure criteria. |
| --- | --- |
| · | Later<br> on through Communication “A” 7222 the Central Bank of Argentina allowed Banks,<br> at its own criteria, to record the impact of Communication “A” 7221 as of<br> December 2020. Banco Macro decided not to take this option. |
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| · | Mandatory Lending SMEs. On January 6, 2021, through Communication “A” 7197, the<br> Central Bank determined that the 65% amount of credit lines granted to finance working<br> capital needs from SMEs disbursed since October 16, 2020 may be applied to achieve th<br> abovementioned 30% of total origination of the 30% interest rate credit line. On February<br> 25, 2021, through Communication “A” 7227, the Central bank increased from<br> 65% to 100% the amount of credit lines granted to fund working capital needs from SMEs<br> disbursed since October 16, 2020 that can be applied to achieve the required origination<br> of the 30% interest rate credit line |
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19
| 4Q20 Earnings Release |
| --- | | QUARTERLY BALANCE SHEET | | | | | | Change | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | In MILLION (Measuring Unit Current at EOP) | 4Q19 | 3Q20 | 4Q20 | FY2019 | FY2020 | | QoQ | | YoY | | | ASSETS | | | | | | | | | | | | Cash and deposits in Banks | 137,066 | 125,726 | 129,967 | 137,066 | 129,967 | | 3 | % | -5 | % | | Cash | 26,563 | 22,434 | 25,423 | 26,563 | 25,423 | | 13 | % | -4 | % | | Central Bank of Argentina | 75,093 | 73,884 | 49,995 | 75,093 | 49,995 | | -32 | % | -33 | % | | Other local & foreign entities | 35,405 | 29,402 | 54,545 | 35,405 | 54,545 | | 86 | % | 54 | % | | Other | 5 | 6 | 4 | 5 | 4 | | -33 | % | -20 | % | | Debt securities at fair value through profit & loss | 7,726 | 18,421 | 54,982 | 7,726 | 54,982 | | 198 | % | 612 | % | | Derivatives | 69 | 15 | 7 | 69 | 7 | | -53 | % | -90 | % | | Repo Transactions | 1,481 | 60,084 | 39,422 | 1,481 | 39,422 | | -34 | % | 2562 | % | | Other financial assets | 8,392 | 17,332 | 18,886 | 8,392 | 18,886 | | 9 | % | 125 | % | | Loans & other receivables | 300,732 | 264,600 | 257,327 | 300,732 | 257,327 | | -3 | % | -14 | % | | Non Financial Public Sector | 8,782 | 4,463 | 3,615 | 8,782 | 3,615 | | -19 | % | -59 | % | | Financial Sector | 5,381 | 1,988 | 1,823 | 5,381 | 1,823 | | -8 | % | -66 | % | | Non Financial private sector and foreign | 286,569 | 258,149 | 251,889 | 286,569 | 251,889 | | -2 | % | -12 | % | | Other debt securities | 87,890 | 267,461 | 209,123 | 87,890 | 209,123 | | -22 | % | 138 | % | | Financial assets in guarantee | 14,531 | 13,613 | 14,292 | 14,531 | 14,292 | | 5 | % | -2 | % | | Investments in equity instruments | 2,091 | 1,811 | 1,663 | 2,091 | 1,663 | | -8 | % | -20 | % | | Investments in other companies (subsidiaries and joint<br> ventures) | 199 | 202 | 204 | 199 | 204 | | 1 | % | 3 | % | | Property, plant and equipment | 35,053 | 34,400 | 34,369 | 35,053 | 34,369 | | 0 | % | -2 | % | | Intangible assets | 4,822 | 4,934 | 5,104 | 4,822 | 5,104 | | 3 | % | 6 | % | | Deferred income tax assets | 59 | 79 | 63 | 59 | 63 | | -20 | % | 7 | % | | Other non financial assets | 1,478 | 2,313 | 2,234 | 1,478 | 2,234 | | -3 | % | 51 | % | | Non-current assets held for sale | 2,384 | 2,502 | 2,258 | 2,384 | 2,258 | | -10 | % | -5 | % | | TOTAL ASSETS | 603,973 | 813,493 | 769,901 | 603,973 | 769,901 | | -5 | % | 27 | % | | LIABILITIES | | | | | | | | | | | | Deposits | 357,866 | 548,519 | 488,741 | 357,866 | 488,741 | | -11 | % | 37 | % | | Non Financial Public Sector | 23,907 | 117,601 | 73,565 | 23,907 | 73,565 | | -37 | % | 208 | % | | Financial Sector | 428 | 491 | 696 | 428 | 696 | | 42 | % | 63 | % | | Non Financial private sector and foreign | 333,531 | 430,427 | 414,480 | 333,531 | 414,480 | | -4 | % | 24 | % | | Derivatives | 1,047 | - | - | 1,047 | - | | 0 | % | 0 | % | | Repo Transactions | 1,365 | - | 619 | 1,365 | 619 | | - | | -55 | % | | Other financial liabilities | 30,182 | 31,879 | 49,216 | 30,182 | 49,216 | | 54 | % | 63 | % | | Financing received from Central Bank and Other<br> Financial Institutions | 3,057 | 766 | 919 | 3,057 | 919 | | 20 | % | -70 | % | | Issued Corporate Bonds | 7,522 | 5,587 | 4,927 | 7,522 | 4,927 | | -12 | % | -34 | % | | Current income tax liabilities | 11,077 | 11,089 | 5,145 | 11,077 | 5,145 | | -54 | % | -54 | % | | Subordinated corporate bonds | 33,098 | 35,101 | 34,300 | 33,098 | 34,300 | | -2 | % | 4 | % | | Provisions | 2,006 | 1,810 | 1,305 | 2,006 | 1,305 | | -28 | % | -35 | % | | Deferred income tax liabilities | 221 | 2,822 | 6,291 | 221 | 6,291 | | 123 | % | 2747 | % | | Other non financial liabilities | 13,777 | 26,826 | 30,357 | 13,777 | 30,357 | | 13 | % | 120 | % | | TOTAL LIABILITIES | 461,218 | 664,399 | 621,820 | 461,218 | 621,820 | | -6 | % | 35 | % | | SHAREHOLDERS' EQUITY | | | | | | | | | | | | Capital Stock | 639 | 639 | 639 | 639 | 639 | | 0 | % | 0 | % | | Issued Shares premium | 12,430 | 12,430 | 12,430 | 12,430 | 12,430 | | 0 | % | 0 | % | | Adjustment to Shareholders' Equity | 50,313 | 50,313 | 50,313 | 50,313 | 50,313 | | 0 | % | 0 | % | | Reserves | 74,777 | 113,885 | 109,816 | 74,777 | 109,816 | | -4 | % | 47 | % | | Retained earnings | -22,059 | -50,603 | -50,603 | -22,059 | -50,603 | | 0 | % | 129 | % | | Other accumulated comprehensive income | 177 | -935 | -4,785 | 177 | -4,785 | | 412 | % | -2803 | % | | Net income for the period / fiscal year | 26,476 | 23,363 | 30,269 | 26,476 | 30,269 | | 30 | % | 14 | % | | Shareholders' Equity attributable to parent<br> company | 142,753 | 149,092 | 148,079 | 142,753 | 148,079 | | -1 | % | 4 | % | | Shareholders' Equity attributable to non<br> controlling interest | 2 | 2 | 2 | 2 | 2 | | 0 | % | 0 | % | | TOTAL SHAREHOLDERS' EQUITY | 142,755 | 149,094 | 148,081 | 142,755 | 148,081 | | -1 | % | 4 | % |
All values are in US Dollars.
20
| 4Q20 Earnings Release |
| --- | | ANNUAL BALANCE SHEET | Macro Consolidated | | | | Change% | | | | --- | --- | --- | --- | --- | --- | --- | --- | | In MILLION $ (Measuring Unit Current at EOP) | FY2019 | | FY2020 | | YoY | | | | ASSETS | | | | | | | | | Cash and deposits in Banks | | 137,066 | | 129,967 | | -5 | % | | Cash | | 26,563 | | 25,423 | | -4 | % | | Central Bank of Argentina | | 75,093 | | 49,995 | | -33 | % | | Other local & foreign entities | | 35,405 | | 54,545 | | 54 | % | | Other | | 5 | | 4 | | -20 | % | | Debt securities at fair value through profit & loss | | 7,726 | | 54,982 | | 612 | % | | Derivatives | | 69 | | 7 | | -90 | % | | Repo Transactions | | 1,481 | | 39,422 | | 2562 | % | | Other financial assets | | 8,392 | | 18,886 | | 125 | % | | Loans & other receivables | | 300,732 | | 257,327 | | -14 | % | | Non Financial Public Sector | | 8,782 | | 3,615 | | -59 | % | | Financial Sector | | 5,381 | | 1,823 | | -66 | % | | Non Financial private sector and foreign | | 286,569 | | 251,889 | | -12 | % | | Other debt securities | | 87,890 | | 209,123 | | 138 | % | | Financial assets in guarantee | | 14,531 | | 14,292 | | -2 | % | | Investments in equity instruments | | 2,091 | | 1,663 | | -20 | % | | Investments in other companies (subsidiaries and joint<br> ventures) | | 199 | | 204 | | 3 | % | | Property, plant and equipment | | 35,053 | | 34,369 | | -2 | % | | Intangible assets | | 4,822 | | 5,104 | | 6 | % | | Deferred income tax assets | | 59 | | 63 | | 7 | % | | Other non financial assets | | 1,478 | | 2,234 | | 51 | % | | Non-current assets held for sale | | 2,384 | | 2,258 | | -5 | % | | TOTAL ASSETS | | 603,973 | | 769,901 | | 27 | % | | LIABILITIES | | | | | | | | | Deposits | | 357,866 | | 488,741 | | 37 | % | | Non Financial Public Sector | | 23,907 | | 73,565 | | 208 | % | | Financial Sector | | 428 | | 696 | | 63 | % | | Non Financial private sector and foreign | | 333,531 | | 414,480 | | 24 | % | | Derivatives | | 1,047 | | - | | -100 | % | | Repo Transactions | | 1,365 | | 619 | | -55 | % | | Other financial liabilities | | 30,182 | | 49,216 | | 63 | % | | Financing received from Central Bank and Other<br> Financial Institutions | | 3,057 | | 919 | | -70 | % | | Issued Corporate Bonds | | 7,522 | | 4,927 | | -34 | % | | Current income tax liabilities | | 11,077 | | 5,145 | | -54 | % | | Subordinated corporate bonds | | 33,098 | | 34,300 | | 4 | % | | Provisions | | 2,006 | | 1,305 | | -35 | % | | Deferred income tax liabilities | | 221 | | 6,291 | | 2747 | % | | Other non financial liabilities | | 13,777 | | 30,357 | | 120 | % | | TOTAL LIABILITIES | | 461,218 | | 621,820 | | 35 | % | | SHAREHOLDERS' EQUITY | | | | | | | | | Capital Stock | | 639 | | 639 | | 0 | % | | Issued Shares premium | | 12,430 | | 12,430 | | 0 | % | | Adjustment to Shareholders' Equity | | 50,313 | | 50,313 | | 0 | % | | Reserves | | 74,777 | | 109,816 | | 47 | % | | Retained earnings | | -22,059 | | -50,603 | | 129 | % | | Other accumulated comprehensive income | | 177 | | -4,785 | | -2803 | % | | Net income for the period / fiscal year | | 26,476 | | 30,269 | | 14 | % | | Shareholders' Equity attributable to parent<br> company | | 142,753 | | 148,079 | | 4 | % | | Shareholders' Equity attributable to non<br> controlling interest | | 2 | | 2 | | 0 | % | | TOTAL SHAREHOLDERS' EQUITY | | 142,755 | | 148,081 | | 4 | % |
21
| 4Q20 Earnings Release |
| --- | | INCOME STATEMENT | | | | | | Change | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | In MILLION (Measuring Unit Current at EOP) | 4Q19 | 3Q20 | 4Q20 | FY2019 | FY2020 | | QoQ | | YoY | | | Interest Income | 46,636 | 40,956 | 41,607 | 206,344 | 157,080 | | 2 | % | -11 | % | | Interest Expense | 14,398 | 17,401 | 19,837 | 87,344 | 60,834 | | 14 | % | 38 | % | | Net Interest Income | 32,238 | 23,555 | 21,770 | 119,000 | 96,246 | | -8 | % | -32 | % | | Fee income | 6,447 | 6,388 | 6,198 | 26,468 | 24,743 | | -3 | % | -4 | % | | Fee expense | 617 | 519 | 538 | 2,192 | 2,047 | | 4 | % | -13 | % | | Net Fee Income | 5,830 | 5,869 | 5,660 | 24,276 | 22,696 | | -4 | % | -3 | % | | Subtotal (Net Interest Income + Net Fee Income) | 38,068 | 29,424 | 27,430 | 143,276 | 118,942 | | -7 | % | -28 | % | | Net Income from financial instruments at Fair<br> Value Through Profit & Loss | -351 | -8,395 | -10,682 | -44,398 | -26,653 | | 27 | % | 2943 | % | | Result from assets at amortised cost | 73 | 68 | 126 | 37 | 1,293 | | 85 | % | 73 | % | | Difference in quoted prices of gold and foreign<br> currency | 1,860 | 1,345 | 1,272 | 4,761 | 4,230 | | -5 | % | -32 | % | | Other operating income | 1,276 | 1,315 | 1,391 | 10,457 | 5,370 | | 6 | % | 9 | % | | Provision for loan losses | 1,977 | 1,948 | 2,159 | 5,830 | 8,003 | | 11 | % | 9 | % | | Net Operating Income | 38,949 | 21,810 | 17,378 | 108,303 | 95,179 | | -20 | % | -55 | % | | Personnel expenses | 7,057 | 6,902 | 6,856 | 28,865 | 26,599 | | -1 | % | -3 | % | | Administrative expenses | 4,664 | 3,784 | 3,897 | 17,427 | 14,540 | | 3 | % | -16 | % | | Depreciation and impairment of assets | 1,058 | 1,130 | 1,113 | 4,093 | 4,402 | | -2 | % | 5 | % | | Other operating expense | 6,542 | 5,109 | 4,989 | 30,088 | 20,471 | | -2 | % | -24 | % | | Operating Income | 19,628 | 4,886 | 523 | 27,830 | 29,167 | | -89 | % | -97 | % | | Income from associates and joint ventures | 36 | 16 | -59 | 1,223 | -7 | | -469 | % | -264 | % | | Result from net monetary position | -6,284 | 5,385 | 7,058 | 14,429 | 13,349 | | 31 | % | -212 | % | | Net Income before income tax on cont. operations | 13,380 | 10,287 | 7,522 | 43,482 | 42,509 | | -27 | % | -44 | % | | Income tax on continuing operations | 5,635 | 3,522 | 616 | 17,006 | 12,240 | | -83 | % | -89 | % | | Net Income from continuing operations | 7,745 | 6,765 | 6,906 | 26,476 | 30,269 | | 2 | % | -11 | % | | Net Income for the period | 7,745 | 6,765 | 6,906 | 26,476 | 30,269 | | 2 | % | -11 | % | | Net Income of the period attributable to parent<br> company | 7,745 | 6,765 | 6,906 | 26,476 | 30,269 | | 2 | % | -11 | % | | Net income of the period attributable to<br> non-controlling interests | - | - | - | - | - | | - | | - | | | Other Comprehensive Income | -64 | -534 | -3,850 | 296 | -4,963 | | - | | - | | | Foreign currency translation differences in financial<br> statements conversion | -190 | 58 | -22 | 116 | 120 | | -138 | % | -88 | % | | Profits or losses from financial assets measured at<br> fair value through other comprehensive income (FVOCI) (IFRS 9(4.1.2)(a) | 126 | -592 | -3,828 | 180 | -5,083 | | - | | - | | | TOTAL COMPREHENSIVE INCOME FOR THE PERIOD | 7,681 | 6,231 | 3,056 | 26,772 | 25,306 | | -51 | % | -60 | % | | Total Comprehensive Income attributable to parent<br> Company | 7,681 | 6,231 | 3,056 | 26,772 | 25,306 | | -51 | % | -60 | % | | Total Comprehensive Income attributable to<br> non-controlling interests | - | - | - | - | - | | - | | - | |
All values are in US Dollars.
22
| 4Q20 Earnings Release |
| --- | | INCOME STATEMENT | Macro Consolidated | | | | Change | | | | --- | --- | --- | --- | --- | --- | --- | --- | | In MILLION $ (Measuring Unit Current at EOP) | FY2019 | | FY2020 | | YoY | | | | Interest Income | | 206,344 | | 157,080 | | -24 | % | | Interest Expense | | 87,344 | | 60,834 | | -30 | % | | Net Interest Income | | 119,000 | | 96,246 | | -19 | % | | Fee income | | 26,468 | | 24,743 | | -7 | % | | Fee expense | | 2,192 | | 2,047 | | -7 | % | | Net Fee Income | | 24,276 | | 22,696 | | -7 | % | | Subtotal (Net Interest Income + Net Fee Income) | | 143,276 | | 118,942 | | -17 | % | | Net Income from financial instruments at Fair<br> Value Through Profit & Loss | | -44,398 | | -26,653 | | -40 | % | | Result from assets at amortised cost | | 37 | | 1,293 | | 3395 | % | | Difference in quoted prices of gold and foreign<br> currency | | 4,761 | | 4,230 | | -11 | % | | Other operating income | | 10,457 | | 5,370 | | -49 | % | | Provision for loan losses | | 5,830 | | 8,003 | | 37 | % | | Net Operating Income | | 108,303 | | 95,179 | | -12 | % | | Personnel expenses | | 28,865 | | 26,599 | | -8 | % | | Administrative expenses | | 17,427 | | 14,540 | | -17 | % | | Depreciation and impairment of assets | | 4,093 | | 4,402 | | 8 | % | | Other operating expense | | 30,088 | | 20,471 | | -32 | % | | Operating Income | | 27,830 | | 29,167 | | 5 | % | | Income from associates and joint ventures | | 1,223 | | -7 | | -101 | % | | Result from net monetary position | | 14,429 | | 13,349 | | -7 | % | | Net Income before income tax on cont. operations | | 43,482 | | 42,509 | | -2 | % | | Income tax on continuing operations | | 17,006 | | 12,240 | | -28 | % | | Net Income from continuing operations | | 26,476 | | 30,269 | | 14 | % | | Net Income for the period | | 26,476 | | 30,269 | | 14 | % | | Net Income of the period attributable to parent<br> company | | 26,476 | | 30,269 | | 14 | % | | Net income of the period attributable to<br> non-controlling interests | | - | | - | | - | | | Other Comprehensive Income | | 296 | | -4,963 | | - | | | Foreign currency translation differences in financial<br> statements conversion | | 116 | | 120 | | 3 | % | | Profits or losses from financial assets measured at<br> fair value through other comprehensive income (FVOCI) (IFRS 9(4.1.2)(a) | | 180 | | -5,083 | | - | | | TOTAL COMPREHENSIVE INCOME FOR THE PERIOD | | 26,772 | | 25,306 | | -5 | % | | Total Comprehensive Income attributable to parent<br> Company | | 26,772 | | 25,306 | | -5 | % | | Total Comprehensive Income attributable to<br> non-controlling interests | | - | | - | | - | |
23
| 4Q20 Earnings Release |
| --- | | QUARTERLY ANNUALIZED RATIOS | MACRO Consolidated | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | 4Q19 | | 1Q20 | | 2Q20 | | 3Q20 | | 4Q20 | | | Profitability & performance | | | | | | | | | | | | Net interest margin | 33.6 | % | 25.2 | % | 19.8 | % | 17.1 | % | 16.3 | % | | Net interest margin adjusted (exc. FX) | 31.7 | % | 24.6 | % | 19.1 | % | 16.2 | % | 15.4 | % | | Net fee income ratio | 8.8 | % | 14.3 | % | 14.7 | % | 20.3 | % | 25.5 | % | | Efficiency ratio | 34.5 | % | 39.8 | % | 43.3 | % | 57.1 | % | 71.5 | % | | Net fee income as % of A&G Expenses | 25.4 | % | 36.0 | % | 33.9 | % | 35.6 | % | 35.7 | % | | Return on average assets | 5.2 | % | 5.9 | % | 4.5 | % | 3.5 | % | 3.7 | % | | Return on average equity | 21.8 | % | 24.6 | % | 21.5 | % | 18.4 | % | 19.1 | % | | Liquidity | | | | | | | | | | | | Loans as a percentage of total deposits | 84.0 | % | 72.3 | % | 56.0 | % | 48.2 | % | 52.7 | % | | Liquid assets as a percentage of total deposits | 66.8 | % | 72.4 | % | 83.8 | % | 87.2 | % | 90.1 | % | | Capital | | | | | | | | | | | | Total equity as a percentage of total assets | 23.6 | % | 23.5 | % | 19.1 | % | 18.3 | % | 19.2 | % | | Regulatory capital as % of APR | 27.3 | % | 32.0 | % | 32.2 | % | 34.8 | % | 34.3 | % | | Asset Quality | | | | | | | | | | | | Allowances over total loans | 2.3 | % | 2.5 | % | 2.8 | % | 3.3 | % | 3.9 | % | | Non-performing financing as a percentage of total financing | 2.1 | % | 1.4 | % | 1.5 | % | 1.1 | % | 0.8 | % | | Coverage ratio w/allowances | 106.1 | % | 173.5 | % | 210.7 | % | 302.9 | % | 479.2 | % | | Cost of Risk | 2.6 | % | 1.6 | % | 4.1 | % | 3.0 | % | 3.4 | % | | ACCUMULATED ANNUALIZED RATIOS | MACRO Consolidated | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | 4Q19 | | 1Q20 | | 2Q20 | | 3Q20 | | 4Q20 | | | Profitability & performance | | | | | | | | | | | | Net interest margin | 18.1 | % | 25.2 | % | 22.3 | % | 20.3 | % | 19.2 | % | | Net interest margin adjusted (exc. FX) | 17.1 | % | 24.6 | % | 21.6 | % | 19.5 | % | 18.4 | % | | Net fee income ratio | 20.1 | % | 14.3 | % | 14.5 | % | 16.1 | % | 17.9 | % | | Efficiency ratio | 50.7 | % | 39.8 | % | 41.6 | % | 45.9 | % | 50.7 | % | | Net fee income as % of A&G Expenses | 39.7 | % | 36.0 | % | 34.9 | % | 35.1 | % | 35.3 | % | | Return on average assets | 4.2 | % | 5.9 | % | 5.2 | % | 4.6 | % | 4.3 | % | | Return on average equity | 19.3 | % | 24.6 | % | 23.0 | % | 21.5 | % | 20.9 | % | | Liquidity | | | | | | | | | | | | Loans as a percentage of total deposits | 84.0 | % | 72.3 | % | 56.0 | % | 48.2 | % | 52.7 | % | | Liquid assets as a percentage of total deposits | 66.8 | % | 72.4 | % | 83.8 | % | 87.2 | % | 90.1 | % | | Capital | | | | | | | | | | | | Total equity as a percentage of total assets | 23.6 | % | 23.5 | % | 19.1 | % | 18.3 | % | 19.2 | % | | Regulatory capital as % of APR | 27.3 | % | 32.0 | % | 32.2 | % | 34.8 | % | 34.3 | % | | Asset Quality | | | | | | | | | | | | Allowances over total loans | 2.3 | % | 2.5 | % | 2.8 | % | 3.3 | % | 3.9 | % | | Non-performing financing as a percentage of total financing | 2.1 | % | 1.4 | % | 1.5 | % | 1.1 | % | 0.8 | % | | Coverage ratio w/allowances | 106.1 | % | 173.5 | % | 210.7 | % | 302.9 | % | 479.2 | % | | Cost of Risk | 1.9 | % | 1.6 | % | 2.8 | % | 2.9 | % | 3.0 | % |
24
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: March 10, 2021
| MACRO BANK INC. | |
|---|---|
| By: | /s/<br> Jorge Francisco Scarinci |
| Name: Jorge Francisco Scarinci | |
| Title: Chief Financial Officer |