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Macro Bank Inc 6-K, filed Jan 20, 2021

Macro Bank Inc. (BMA)

6-K 2021-01-20 For: 2021-01-19
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Added on April 10, 2026

About this 6-K

Macro Bank Inc filed this 6-K on January 20, 2021.

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C.  20549

FORM 6-K

REPORT OF FOREIGNPRIVATE ISSUER

PURSUANT TO RULE13a-16 OR 15d-16 UNDER THE

SECURITIES EXCHANGEACT OF 1934

January 19, 2021

Commission File Number: 001-32827

MACROBANK INC.

(Translation ofregistrant’s name into English)

Av. Eduardo Madero 1182

Buenos Aires C1106ACY

Tel: 54 11 5222 6500

(Address of registrant’s principalexecutive offices)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

Form 20-F x Form 40-F ¨

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):

Yes ¨ No x

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):

Yes ¨ No x

BANCO MACRO S.A.

Condensed interim financial statements as of September 30, 2020 together with the reports on review of interim financial statements.

CONTENT

· Cover Sheet
· Condensed consolidated interim statement of financial<br>position
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· Condensed consolidated interim statement of income
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· Condensed consolidated interim statement of other<br>comprehensive income
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· Condensed consolidated interim statement of changes<br>in shareholders’ equity
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· Condensed consolidated interim statement of cash<br>flows
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· Notes to the condensed consolidated interim financial<br>statements
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· Consolidated exhibits
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· Condensed separate interim statement of financial<br>position
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· Condensed separate interim statement of income
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· Condensed separate interim statement of other comprehensive<br>income
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· Condensed separate interim statement of changes in<br>shareholders’ equity
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· Condensed separate interim statement of cash flows
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· Notes to the condensed separate interim financial<br>statements
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· Separate exhibits
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· Review report on condensed consolidated interim financial<br>statements
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· Review report on condensed separate interim financial<br>statements
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CONDENSED INTERIM FINANCIAL STATEMENTS

AS OF SEPTEMBER 30, 2020

CORPORATE NAME: Banco Macro SA

REGISTERED OFFICE: Avenida Eduardo Madero 1182 – Autonomous City of Buenos Aires

CORPORATE PURPOSE AND MAIN ACTIVITY: Commercial bank

CENTRAL BANK OF ARGENTINA: Authorized as “Argentine private bank” under No. 285.

REGISTRATION WITH THE PUBLIC REGISTRY OF COMMERCE: Under No. 1154 - By-laws Book No. 2, Folio 75 dated March 8, 1967

BY-LAWS EXPIRY DATE: March 8, 2066

**REGISTRATION WITH THE 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 DATES OF 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 SEPTEMBER 30, 2020 AND DECEMBER 31, 2019

(Translation of the Financial statements originally issued in Spanish – See Note 41)

(Figures stated in thousands of pesos in terms of purchasing power of pesos as of September 30, 2020, except that indicated otherwise)

Items Notes Exhibits 09/30/2020 12/31/2019
ASSETS
Cash and Deposits in Banks 6 112,933,534 123,120,508
Cash 20,151,251 23,860,558
Central Bank of Argentina 66,366,745 67,452,287
Other Local and Foreign Entities 26,410,774 31,803,082
Other 4,764 4,581
Debt Securities at fair value through profit or loss 6 and 37 16,546,573 6,939,904
Derivative Financial Instruments 6 13,685 61,982
Repo transactions 6 53,970,838 1,330,400
Other financial assets 6 and 8 R 15,568,222 7,537,762
Loans and other financing 5 and 6 B, C, D and R 237,678,324 270,133,440
Non-financial Public Sector 4,009,092 7,888,422
Other Financial Entities 1,786,047 4,833,107
Non-financial Private Sector and Foreign Residents 231,883,185 257,411,911
Other Debt Securities 6 and 37 R 240,247,772 78,947,577
Financial Assets delivered as guarantee 6 and 27 12,228,348 13,052,299
Equity Instruments at fair value through profit or loss 6, 11 and 37 1,626,591 1,878,634
Investment in associates and joint arrangements 7 181,618 178,947
Property, plant and equipment F 30,899,709 31,486,396
Intangible Assets G 4,431,855 4,331,546
Deferred Income Tax Assets 16 71,146 53,101
Other Non-financial Assets 8 2,077,899 1,327,248
Non-current assets held for sale 2,247,289 2,141,390
TOTAL ASSETS 730,723,403 542,521,134

Delfín Jorge Ezequiel Carballo

Chairperson

- 1 -

CONDENSED CONSOLIDATED INTERIM STATEMENT OF FINANCIAL POSITION

AS OF SEPTEMBER 30, 2020 AND DECEMBER 31, 2019

(Translation of the Financial statements originally issued in Spanish – See Note 41)

(Figures stated in thousands of pesos in terms of purchasing power of pesos as of September 30, 2020, except that indicated otherwise)

Items Notes Exhibits 09/30/2020 12/31/2019
LIABILITIES
Deposits 6 H and I 492,709,538 321,455,062
Non-financial Public Sector 105,635,759 21,474,272
Financial Sector 440,978 384,185
Non-financial Private Sector and Foreign Residents 386,632,801 299,596,605
Derivative Financial Instruments 6 I 381 940,073
Repo Transactions 6 I 1,225,960
Other Financial Liabilities 6 and 13 I 28,635,362 27,110,965
Financing received from the Central Bank of Argentina and other financial institutions 6 I 687,918 2,746,369
Issued Corporate Bonds 6 and 32 I 5,018,613 6,756,507
Current Income Tax Liabilities 16 9,961,129 9,949,649
Subordinated Corporate Bonds 6 and 32 I 31,529,966 29,730,457
Provisions 12 J 1,625,544 1,801,946
Deferred Income Tax Liabilities 2,534,570 198,852
Other Non-financial Liabilities 13 24,096,458 12,374,809
TOTAL LIABILITIES 596,799,479 414,290,649
SHAREHOLDERS’ EQUITY
Capital Stock 24 639,413 639,413
Non-capital contributions 12,429,781 12,429,781
Adjustments to Shareholders’ Equity 43,864,265 43,864,265
Earnings Reserved 102,297,425 67,168,444
Unappropriated Retained Earnings (45,454,225 ) (19,814,167 )
Other Comprehensive Income (840,159 ) 158,872
Net Income for the period / fiscal year 20,985,802 23,782,154
Net Shareholders’ Equity attributable to controlling interest 133,922,302 128,228,762
Net Shareholders’ Equity attributable to non-controlling interests 1,622 1,723
TOTAL SHAREHOLDERS’ EQUITY 133,923,924 128,230,485
TOTAL SHAREHOLDERS’ EQUITY AND LIABILITIES 730,723,403 542,521,134

The notes 1 to 41 to the condensed consolidated interim financial statements and the exhibits B to D, F to J, L, Q and R are an integral part of the condensed consolidated interim financial statements.

Delfín Jorge Ezequiel Carballo

Chairperson

- 2 -

CONDENSED CONSOLIDATED INTERIM STATEMENT OF INCOME

FOR THE THREE AND NINE MONTH PERIODS ENDED SEPTEMBER 30, 2020 AND 2019

(Translation of the Financial statements originally issued in Spanish – See Note 41)

(Figures stated in thousands of pesos in terms of purchasing power of pesos as of September 30, 2020, except that indicated otherwise)

Items Notes Exhibits Quarter<br><br> ended<br><br> 09/30/2020 Accumulated<br><br> from<br><br> beginning of<br><br> year up to<br><br> 09/30/2020 Quarter<br><br> ended<br><br> 09/30/2019 Accumulated<br><br> from<br><br> beginning of<br><br> year up to<br><br> 09/30/2019
Interest income Q 36,789,382 103,724,542 51,123,762 143,458,037
Interest expense Q (15,630,562 ) (36,825,950 ) (22,392,883 ) (65,524,033 )
Net Interest income 21,158,820 66,898,592 28,730,879 77,934,004
Commissions income 17 Q 5,737,830 16,658,213 5,946,633 17,983,620
Commissions expense Q (466,680 ) (1,355,984 ) (551,867 ) (1,414,784 )
Net Commissions income 5,271,150 15,302,229 5,394,766 16,568,836
Subtotal (Net Interest income +Net Commissions income) 26,429,970 82,200,821 34,125,645 94,502,840
Loss from measurement of financial instruments at fair value through profit or loss Q (7,540,551 ) (14,346,533 ) (16,732,216 ) (39,565,747 )
Profit / (Loss) from sold or derecognized assets at amortized cost 61,240 1,048,498 (281 ) (31,999 )
Differences in quoted prices of gold and foreign currency 18 1,206,941 2,656,630 2,137,825 2,607,324
Other operating income 19 1,181,527 3,573,568 1,510,281 8,246,375
Allowance for loan losses 5 (1,749,586 ) (5,249,218 ) (393,783 ) (3,461,430 )
Net Operating Income 19,589,541 69,883,766 20,647,471 62,297,363
Employee benefits 20 (6,199,034 ) (17,733,562 ) (6,349,867 ) (19,589,080 )
Administrative expenses 21 (3,399,705 ) (9,560,106 ) (4,153,107 ) (11,464,354 )
Depreciation and amortization of fixed assets F and G (1,015,353 ) (2,954,856 ) (956,344 ) (2,725,913 )
Other Operating Expenses 22 (4,586,948 ) (13,905,032 ) (9,332,573 ) (21,150,485 )
Operating Income/ (Loss) 4,388,501 25,730,210 (144,420 ) 7,367,531
Income from associates and joint arrangements 7 15,057 47,228 23,906 1,066,445
Gain on net monetary position 4,836,163 5,650,385 8,185,459 18,605,249
Income before tax on continuing operations 9,239,721 31,427,823 8,064,945 27,039,225
Income tax on continuing operations 16.c) (3,164,086 ) (10,441,755 ) 1,046,625 (10,213,936 )
Net Income from continuing operations 6,075,635 20,986,068 9,111,570 16,825,289
Net Income for the period 6,075,635 20,986,068 9,111,570 16,825,289
Net Income for the period attributable to controlling interest 6,075,553 20,985,802 9,111,646 16,825,239
Net Income / (Loss) for the period attributable to non-controlling interest 82 266 (76 ) 50

Delfín Jorge Ezequiel Carballo

Chairperson

- 3 -
CONSOLIDATED EARNINGS PER SHARE
FOR THE THREE AND NINE MONTH PERIODS ENDED SEPTEMBER 30, 2020 AND 2019
(Translation of the Financial statements originally issued in Spanish – See Note 41)
(Figures stated in<br> thousands of pesos in terms of purchasing power of pesos as of September 30, 2020, except that indicated<br> otherwise)
Items Quarter<br><br> ended<br><br> 09/30/2020 Accumulated<br><br> from beginning<br><br> of year up to<br><br> 09/30/2020 Quarter<br><br> ended<br><br> 09/30/2019 Accumulated<br><br> from beginning<br><br> of year up to<br><br> 09/30/2019
--- --- --- --- --- --- --- --- ---
Net Profit attributable to Parent’s shareholders 6,075,553 20,985,802 9,111,646 16,825,239
PLUS: Potential diluted earnings per common share
Net Profit attributable to Parent’s shareholders adjusted as per diluted earnings 6,075,553 20,985,802 9,111,646 16,825,239
Weighted average of outstanding common shares for the period 639,413 639,413 639,398 639,403
PLUS: Weighted average of the number of additional common shares with dilution effects
Weighted average of outstanding common shares for the period adjusted as per dilution effect 639,413 639,413 639,398 639,403
Basic earnings per share (in pesos) 9.5018 32.8204 14.2503 26.3140
Delfín Jorge Ezequiel<br> Carballo
---
Chairperson 
- 4 -
CONDENSED CONSOLIDATED INTERIM STATEMENT OF OTHER COMPREHENSIVE INCOME
FOR THE THREE AND NINE MONTH PERIODS ENDED SEPTEMBER 30, 2020 AND 2019
(Translation of the Financial statements originally issued in Spanish – See Note 41)
(Figures<br> stated in thousands of pesos in terms of purchasing power of pesos as of September 30, 2020, except that indicated<br> otherwise)
Items Notes Exhibits Quarter<br><br><br> ended<br><br> 09/30/2020 Accumulated<br><br><br> from<br><br> beginning of<br><br> year up to<br><br> 09/30/2020 Quarter<br><br><br> ended<br><br> 09/30/2019 Accumulated<br><br><br> from<br><br> beginning of<br><br> year up to<br><br> 09/30/2019
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Net Income<br> for the period 6,075,635 20,986,068 9,111,570 16,825,289
Items of Other Comprehensive<br> Income that will be reclassified to profit or loss
Foreign currency<br> translation differences in financial statements conversion 51,818 127,449 491,649 275,188
Foreign currency translation<br> differences for the period 51,818 127,449 491,649 275,188
Profit or losses<br> for financial instruments measured at fair value through other comprehensive income (FVOCI) (IFRS 9(4.1.2)(a)) (530,112 ) (1,126,480 ) 41,361 47,935
Profit or losses for the<br> period from financial instruments at fair value through other comprehensive income (FVOCI) (*) Q (482,983 ) (1,003,407 ) 176,935 166,040
Income tax 16.c) (47,129 ) (123,073 ) (135,574 ) (118,105 )
Total Other Comprehensive<br> (Loss) / Income  that is subsequently reclassified to profit or loss (478,294 ) (999,031 ) 533,010 323,123
Total Other Comprehensive<br> (Loss) / Income (478,294 ) (999,031 ) 533,010 323,123
Total Comprehensive<br> Income  for the period 5,597,341 19,987,037 9,644,580 17,148,412
Total Comprehensive Income<br> attributable to controlling interest 5,597,259 19,986,771 9,644,660 17,148,373
Total Comprehensive Income<br> / (Loss) attributable to non-controlling interest 82 266 (80 ) 39
(*) Net amount of reclassifications to the income statement<br>of instruments classified at fair value through other comprehensive income that were derecognized or charged during the period.<br>At September 30, 2020 and 2019 the reclassified amounts at profit or loss was (1,819,538) and (8,247,472), respectively.
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The notes 1 to 41 to the condensed consolidated interim financial statements and the exhibits B to D, F to J, L, Q and R are an integral part of the condensed consolidated interim financial statements.

Delfín Jorge Ezequiel<br> Carballo
Chairperson 
- 5 -

CONDENSED CONSOLIDATED INTERIM STATEMENT OF CHANGESIN SHAREHOLDERS’ EQUITY

FOR THE NINE MONTHPERIOD ENDED SEPTEMBER 30, 2020

(Translation of the Financial statements originally issued in Spanish – See Note 41)

(Figures stated in thousands of pesos in terms of purchasing power of pesos as of September 30, 2020, except that indicated otherwise)

Capital<br> stock Non-<br> capital<br><br> contributions Other<br> comprehensive<br><br> income Earnings<br> Reserved
Changes Notes Outstanding<br><br> shares In<br><br> treasury Additional<br><br> paid-in<br><br> capital Adjustments to Shareholders’ Equity Accumulative<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>Equity
Amount at the<br> beginning of the fiscal year restated 639,413 12,429,781 43,864,265 705,527 (546,655 ) 18,846,857 48,321,587 3,967,987 128,228,762 1,723 128,230,485
Total comprehensive income<br> for the period
- Net income for the period 20,985,802 20,985,802 266 20,986,068
- Other comprehensive income/<br> (loss) for the period 127,449 (1,126,480 ) (999,031 ) (999,031 )
Distribution of unappropriated<br> retained earnings as approved by Shareholders´ Meeting held on April 30, 2020
Legal<br> reserve 9,978,718 (9,978,718 )
Normative<br> reserve 39,443,494 (39,443,494 )
Cash<br> dividends 25 and 35 (14,293,231 ) (14,293,231 ) (14,293,231 )
Other<br> changes (367 ) (367 )
Amount<br> at the end of period 639,413 12,429,781 43,864,265 832,976 (1,673,135 ) 28,825,575 73,471,850 (24,468,423 ) 133,922,302 1,622 133,923,9240
CONDENSED CONSOLIDATED INTERIM STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY
---
FOR THE NINE MONTH PERIOD ENDED SEPTEMBER 30, 2019
(Translation of the Financial statements originally issued in Spanish – See Note 41)
(Figures stated in thousands of pesos<br> in terms of purchasing power of pesos as of September 30, 2020, except that indicated otherwise)
Non-capital Other<br> comprehensive
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Capital<br> stock Contributions income Earnings<br> Reserved
Accumulative
foreign
currency
translation
Adjustments difference<br> in
Additional to financial Unappropriated Total Total<br> Non-
Outstanding In paid-in Shareholders’ statements Retained Controlling Controlling Total
Changes Notes shares treasury capital Equity conversion Other Legal Other Earnings Interests Interests Equity
Amount at the<br> beginning of the fiscal year restated 640,715 28,948 12,428,461 43,896,564 601,187 (708,010 ) 12,928,892 28,449,843 15,944,082 114,210,682 1,897 114,212,579
Adjustment<br> and retroactive restatements 3 370,000 370,000 370,000
Amount<br> at the beginning of the fiscal year adjusted and restated 640,715 28,948 12,428,461 43,896,564 601,187 (708,010 ) 12,928,892 28,449,843 16,314,082 114,580,682 1,897 114,582,579
Total comprehensive income<br> for the period
- Net income for the period 16,825,239 16,825,239 50 16,825,289
- Other comprehensive income/<br> (loss) for the period 275,188 47,946 323,134 (11 ) 323,123
Distribution of unappropriated<br> retained earnings as approved by Shareholders´ Meeting held on April 30, 2019
Legal<br> reserve 5,917,966 (5,917,966 )
Normative<br> reserve 6,538,425 (6,538,425 )
Cash dividends (10,402,570 ) (10,402,570 ) (10,402,570 )
Other 23,671,870 (23,671,870 )
Own shares in treasury 24 (1,317 ) 1,317
Decrease of own shares<br> in treasury (30,265 ) (33,753 ) 64,018
Other<br> changes (387 ) (387 )
Amount<br> at the end of the period 639,398 12,428,461 43,862,811 876,375 (660,064 ) 18,846,858 48,321,586 (2,988,940 ) 121,326,485 1,549 121,328,0341

The notes 1 to 41 to the condensed consolidated interim financial statements and the exhibits B to D, F to J, L, Q and R are an integral part of the condensed consolidated interim financial statements.

Delfín Jorge Ezequiel<br> Carballo
Chairperson 
- 6 -
CONDENSED CONSOLIDATED INTERIM STATEMENT OF CASH FLOWS
FOR THE NINE MONTH PERIODS ENDED SEPTEMBER 30, 2020 AND 2019
(Translation of the Financial statements originally issued in Spanish – See Note 41)
(Figures stated in thousands of pesos<br> in terms of purchasing power of pesos as of September 30, 2020, except that indicated otherwise)
Items Notes 09/30/2020 09/30/2019
--- --- --- --- --- --- --- ---
CASH FLOWS FROM OPERATING ACTIVITIES
Income for the period before Income Tax 31,427,823 27,039,225
Adjustment for the total monetary effect of the period (5,650,385 ) (18,605,249 )
Adjustments to obtain cash flows from operating activities:
Amortization and depreciation 2,954,856 2,725,913
Allowance for loan losses 5,249,218 3,461,430
Difference in quoted prices of foreign currency (11,423,199 ) (28,490,180 )
Other adjustments 39,792,977 90,592,920
Net increase / (decrease) from operating assets:
Debt Securities at fair value through profit and loss (9,606,669 ) 2,913,923
Derivative financial instruments 48,297 (44,572 )
Repo transactions (52,640,438 )
Loans and other financing
Non-financial public sector 3,879,330 2,697,340
Other financial entities 3,047,060 7,252,611
Non-financial private sector and foreign residents 20,261,508 58,058,403
Other debt securities (87,510,689 ) (11,304,260 )
Financial assets delivered as guarantee 823,951 (1,922,912 )
Equity instruments at fair value through profit or loss 252,043 1,089,552
Other assets (8,733,896 ) (2,011,224 )
Net increase / (decrease) from operating liabilities:
Deposits
Non-financial public sector 84,161,487 (8,529,922 )
Financial sector 56,793 121,400
Non-financial private sector and foreign residents 87,036,196 (85,116,497 )
Derivative financial instruments (939,692 ) 198,679
Repo transactions (1,225,960 ) 2,651,201
Other liabilities 323,331 (5,616,876 )
Payments for Income Tax (5,912,014 ) (9,518,475 )
TOTAL CASH FROM OPERATING ACTIVITIES (A) 95,671,928 27,642,430
Delfín Jorge Ezequiel<br> Carballo
---
Chairperson 
- 7 -
CONDENSED CONSOLIDATED INTERIM STATEMENT OF CASH FLOWS
FOR THE NINE MONTH PERIODS ENDED SEPTEMBER 30, 2020 AND 2019
(Translation of the Financial statements originally issued in Spanish – See Note 41)
(Figures stated in thousands of pesos<br> in terms of purchasing power of pesos as of September 30, 2020, except that indicated otherwise)
Items Notes 09/30/2020 09/30/2019
--- --- --- --- --- --- --- ---
CASH FLOWS FROM INVESTING ACTIVITIES
Payments:
Acquisition of PPE, intangible assets and other assets (2,423,051 ) (3,842,667 )
TOTAL CASH USED IN INVESTING ACTIVITIES (B) (2,423,051 ) (3,842,667 )
CASH FLOWS FROM FINANCING ACTIVITIES
Payments:
Dividends (367 ) (10,402,957 )
Acquisition or redemption of equity instruments (365,330 )
Non subordinated corporate bonds (1,472,969 ) (2,818,903 )
Central Bank of Argentina (9,341 )
Financing from local financial entities (1,993,840 ) (1,318,561 )
Subordinated Corporate Bonds (1,020,904 ) (956,823 )
Other payments related to financing activities (369,390 ) (170,763 )
Proceeds:
Central Bank of Argentina 8,245
Financing to local financial entities 49
Subordinated Corporate Bonds 18,411
TOTAL CASH USED IN FINANCING ACTIVITIES (C) (4,848,351 ) (16,025,092 )
EFFECT OF EXCHANGE RATE FLUCTUATIONS (D) 19,085,823 42,433,953
MONETARY EFFECT ON CASH AND CASH EQUIVALENTS (E) (43,869,167 ) (86,994,327 )
NET INCREASE/ (DECREASE) IN CASH AND CASH EQUIVALENTS (A+B+C+D+E) 63,617,182 (36,785,703 )
CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE FISCAL YEAR 23 180,242,451 245,740,566
CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD 23 243,859,633 208,954,863

The notes 1 to 41 to the condensed consolidated interim financial statements and the exhibits B to D, F to J, L, Q and R are an integral part of the condensed consolidated interim financial statements.

Delfín Jorge Ezequiel<br> Carballo
Chairperson 
- 8 -

NOTES TO THE CONDENSED CONSOLIDATEDINTERIM FINANCIAL STATEMENTS

AS OF SEPTEMBER 30, 2020

(Translation of Financial statements originally issued in Spanish – See Note 41)

(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of September 30, 2020, unless otherwise expressly stated)

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.

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 it 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 was mainly focused on the regional areas outside the City of Buenos Aires. 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.

On May 21, 2019, the Bank acquired 100% of Argenpay SAU for an amount of 100 conformed by 100,000 common, registered shares, with a face value of Ps. 1 each one and entitled to one vote. The main activity of such company is the development of its own network or the incorporation into other networks so that it can operate with individuals or companies, in-person or remotely, by using information and communication technologies, grant, offer or accept electronic payments online or offline, digital and virtual wallets and e-commerce in general. This subsidiary started to develop its principal activities during the fourth quarter of 2019. On November 18, 2020, it was registered in the “Payment services suppliers Registry that offers payment accounts” of the Central Bank of Argentina (BCRA, for its acronym in Spanish) under Nº 33678.

Additionally, on July 17 and August 26, 2020, the Bank made irrevocable capital contributions in advance of future share subscription to the company Play Digital SA of 16,250 and 27,250, respectively. On July 23 and August 26, 2020, the Extraordinary Shareholders’ Meeting of Play Digital SA accepted the irrevocable capital contributions and gave its approval to the Bank to subscribe 16,250,000 and 26,634,046 common, registered shares, with a face value of Ps. 1, respectively, which represents 25% of the capital stock. On October 15, 2020, the Bank made a new irrevocable capital contribution of 61,689 which was accepted by the Extraordinary Shareholders’ Meeting of Play Digital SA on that date and gave its approval to the Bank to subscribe 58,017,400 common, registered shares, with a face value of Ps. 1. The capital stock increase totaled 685,631, which allowed that other companies were accepted as shareholders together with Banco de Galicia y Buenos Aires SAU, Banco BBVA Argentina SA and Banco Santander Río SA. After the abovementioned capital stock increase, the Bank’s interest in Play Digital amounted to 11.7715%. 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 November 30, 2020, 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
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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.

- 9 -

NOTES TO THE CONDENSED CONSOLIDATEDINTERIM FINANCIAL STATEMENTS

AS OF SEPTEMBER 30, 2020

(Translation of Financial statements originally issued in Spanish – See Note 41)

(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of September 30, 2020, unless otherwise expressly stated)

As of September 30, 2020 and December 31, 2019, the deposits held by the Misiones Provincial Government with the Bank amounted to 17,144,889 and 8,359,140 (including 818,821 and 846,426, 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 September 30, 2020 and December 31, 2019, the deposits held by the Salta Provincial Government with the Bank amounted to 6,682,956 and 5,330,045 (including 1,136,086 and 1,109,490, related to court deposits), respectively.

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 September 30, 2020 and December 31, 2019, the deposits held by the Jujuy Provincial Government with the Bank amounted to 6,769,875 and 1,443,682 (including 865,193 and 785,141, related to court deposits), respectively.

2.4. Agreement with the Tucumán Provincial Government.<br> Merger with Banco del Tucumán SA

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 Municipalities Governments are effective through years 2031, 2023 and 2025, respectively.

On July 4, 2018, the legislative body of the province of Tucumán enacted into law a bill issued by the provincial executive, authorizing the sale of the shares held by such province in Banco de Tucumán SA to Banco Macro SA. On August 10, 2018, the province of Tucumán transferred to Banco Macro SA, 43,960 Class B common registered non-endorsable shares, with a face value of Ps. 100 each one and entitled to one vote, which is equivalent to 10% of its common stock and votes and the exchange ratio was agreed at 0.65258 ordinary shares of Banco Macro SA for each face value Ps.1 of common share of Banco del Tucumán SA. Therefore, the minority shareholders of Banco del Tucumán SA were entitled to receive at 0.65258 common shares of Banco Macro SA, for each face value Ps. 1 of ordinary shares they hold in Banco del Tucumán SA. Consequently, Banco Macro SA issued 15,662 Class B common, registered shares, with a face value of Ps. 1 each one and entitled to one vote (see additionally note 24).

During 2019, the merger with Banco del Tucuman SA by Banco Macro SA was performed and authorized by the Board of the BCRA through Resolution No. 179. On September 25, 2019, Argentine Securities and Exchange Commission (CNV, for its acronym in Spanish), authorized the merger which was registered at the Public Registry of Commerce on September 30, 2019.

Through Communiqué “C” 84993 the BCRA informed that, according to the authorization gave in due time on October 15, 2019, Banco Macro SA performed the merger with Banco del Tucumán SA. Additionally, since that date, the authorization of Banco del Tucumán SA to operate as a commercial bank was revoked and its buildings were incorporated to Banco Macro SA as branches.

- 10 -

NOTES TO THE CONDENSED CONSOLIDATEDINTERIM FINANCIAL STATEMENTS

AS OF SEPTEMBER 30, 2020

(Translation of Financial statements originally issued in Spanish – See Note 41)

(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of September 30, 2020, unless otherwise expressly stated)

As of September 30, 2020 and December 31, 2019, 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 10,301,022 and 4,403,376 (including 3,151,091 and 3,002,247, related to court deposits), respectively.

Additionally, as of September 30, 2020 and December 31, 2019, the Bank granted loans to the Tucumán Provincial Government for an amount of 3,122,568 and 6,832,614, respectively.

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 pursuant with Conceptual Framework as established by BCRA (Communiqué “A” 6114 as supplementary rules of the BCRA). Apart from 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).

From transitory exceptions established by BCRA to the application of effective IFRS, the following have affected the preparation of these condensed consolidated interim financial statements.

a) According to Communiqué<br> “A” 6114, as supplementary, and in the convergence process through IFRS,<br> the BCRA established that since fiscal years beginning on January 1, 2020 included,<br> financial institutions defined as “Group A” by BCRA rules, in which the Bank<br> is included, begin to apply section 5.5 “Impairment” of the IFRS 9 “Financial<br> Instruments” (sections B5.5.1 to B5.5.55), except for the temporary exclusion for<br> the debt securities of the non-financial public sector established by BCRA Communiqué<br> “A” 6847.
b) Additionally, on April 29,<br> 2019, the Bank received a Memorandum from the BCRA, which established specifics guidelines<br> related to the measurement of the Bank’s holding in Prisma Medios de Pago SA as<br> explained in note 11. Considering such guidelines, the Bank adjusted the fair value previously<br> determined.
--- ---

As of the date of issuance of these condensed consolidated interim financial statements, the Bank is in the process of quantifying the effect of the fully application of section 5.5 “Impairment” will have and the needed adjustment over the fair value of the Bank’s holding in Prisma Medios de Pago SA, as mentioned in sections (a) and (b) abovementioned, which could be material.

Except for what was mentioned in the preceding 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” 6840. 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 for the nine-month period ended on September 30, 2020, have been prepared in accordance with the Conceptual 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 sections “measuring unit” and “Beginning effects of application of section 5.5. “impairment” of the IFRS 9”, 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, 2019, already issued.

- 11 -

NOTES TO THE CONDENSED CONSOLIDATEDINTERIM FINANCIAL STATEMENTS

AS OF SEPTEMBER 30, 2020

(Translation of Financial statements originally issued in Spanish – See Note 41)

(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of September 30, 2020, unless otherwise expressly stated)

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, 2019, 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, 2019, already issued.

As of September 30, 2020 and December 31, 2019, the Bank has consolidated into its financial statements the financial statements of the following companies:

Subsidiaries Principal<br> Place of Business Country Main<br> Activity
Macro Securities SA (a) and<br> (b) Av. Eduardo Madero 1182 – Autonomous City of<br> Buenos Aires Argentina Stock exchange services
Macro Fiducia SA Av. Leandro N. Alem 1110– 1st floor. Autonomous<br> City of Buenos Aires Argentina Services
Macro Fondos SGFCISA Av. Eduardo Madero 1182– 24th floor, Office B–.<br> Autonomous City of Buenos Aires Argentina Management and administration of mutual funds
Macro Bank Limited (c) Caves Village, Building 8 Office 1 – West Bay<br> St., Nassau Bahamas Banking entity
Argenpay SAU Av. Eduardo Madero 1182 – Autonomous City of<br> Buenos Aires Argentina Electronic payments services
(a) Consolidated with Macro Fondos<br> SGFCI SA (80.90% equity interest and voting rights).
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(b) The indirect interest of Banco<br> Macro SA comes from Macro Fiducia SA.
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(c) Consolidated with Sud Asesores<br>(ROU) SA (100% voting rights – Equity interest 18,461).
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As of September 30, 2020 and December 31, 2019, the Bank’s equity interest and voting rights in the companies it consolidates is as follows:

Shares Bank’s<br> interest Non-controlling<br> interest
Subsidiaries Type Number Total<br> capital<br><br> stock Voting<br> <br><br> rights Total<br> capital<br><br> stock Voting<br> <br><br> Rights
Macro Securities SA Common 12,776,680 99.925 % 99.932 % 0.075 % 0.068 %
Macro Fiducia SA Common 46,935,318 99.046 % 99.046 % 0.954 % 0.954 %
Macro Fondos SGFCISA Common 327,183 99.939 % 100.00 % 0.061 %
Macro Bank Limited Common 39,816,899 99.999 % 100.00 % 0.001 %
Argenpay SAU Common 7,700,000 100.00 % 100.00 %

Total assets, liabilities and Shareholders’ equity of the Bank and all its subsidiaries as of September 30, 2020 and December 31, 2019 are as follows:

As<br> of 09/30/2020 Banco<br> Macro <br><br> SA Macro<br> Bank<br><br> Limited Macro<br> <br><br> Securities SA Macro<br><br> Fiducia SA Argenpay<br> <br><br> SAU Eliminations Consolidated
Assets 716,293,091 15,934,056 5,288,011 81,967 251,042 (7,124,764 ) 730,723,403
Liabilities 582,370,789 13,542,159 3,913,073 5,184 47,136 (3,078,862 ) 596,799,479
Equity attributable to<br> the owners of the Bank 133,922,302 2,391,897 1,317,692 76,783 203,906 (3,990,278 ) 133,922,302
Equity attributable to<br> non-controlling interests 57,246 (55,624 ) 1,622 
- 12 -

NOTES TO THE CONDENSED CONSOLIDATEDINTERIM FINANCIAL STATEMENTS

AS OF SEPTEMBER 30, 2020

(Translation of Financial statements originally issued in Spanish – See Note 41)

(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of September 30, 2020, unless otherwise expressly stated)

As of 12/31/2019 Banco Macro<br><br> SA Macro<br> Bank<br><br> Limited Macro <br><br> Securities SA Macro <br><br> Fiducia SA Argenpay <br><br> SAU Eliminations Consolidated
Assets 538,747,442 4,205,113 4,921,212 78,284 9,436 (5,440,353 ) 542,521,134
Liabilities 410,518,680 1,781,941 3,343,612 3,843 691 (1,358,118 ) 414,290,649
Equity attributable to the owners of the Bank 128,228,762 2,423,172 1,491,774 74,441 8,745 (3,998,132 ) 128,228,762
Equity attributable to non-controlling interests 85,826 (84,103 ) 1,723

Transcription in the Books of Accounts

As of the date of issuance of these condensed consolidated interim financial statements, the same are in the process of being transcribed in the Books of Accounts 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 September 30, 2020, and are rounded up to the nearest amount in thousands of pesos, unless otherwise expressly stated (see section “Measuring unit” of this note).

Comparative information

The condensed consolidated interim statement of financial position as of September 30, 2020, is presented comparatively with year-end data of the immediately preceding fiscal year, while the statement of income and the statement of other comprehensive income for the three-month and nine-month periods ended September 30, 2020, and the statement of changes in shareholders’ equity and the statement of cash flows and cash equivalents for the nine-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 measuring unit current at the end of the reporting period (see the following section “Measuring unit”):

Measuring unit

These condensed consolidated interim financial statements as of September 30, 2020 have been restated for the changes in the general purchasing power of the functional currency (Argentine pesos) of the Bank, as of that date, as established by IAS 29 “Financial Reporting in Hyperinflationary Economies” and considering, in addition, specifics rules established by BCRA through Communiqués “A” 6651, 6849, as amendments, which established to apply this method, on a mandatory basis, from fiscal years beginning on January 1, 2020, included and determined as the transition date on 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 qualitative indicators, not limited to, consisting of analyzing the general population behavior, prices, interest rates and wages with changes to a price index 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 exceeds that figures 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 CONSOLIDATEDINTERIM FINANCIAL STATEMENTS

AS OF SEPTEMBER 30, 2020

(Translation of Financial statements originally issued in Spanish – See Note 41)

(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of September 30, 2020, unless otherwise expressly stated)

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 FACPCE, which combines 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 Autonomous City of Buenos Aires was used.

Considering the abovementioned indexes, the inflation rate was 22.29% and 37.70% for the nine-month periods ended on September 30, 2020 and 2019, respectively and 53.83% for the fiscal year ended on December 31, 2019.

Below is a description of the restating mechanism provided by IAS 29 and the restatement process for financial statements established by BCRA Communiqué “A” 6849, as supplementary:

Description of the main aspects of the restatement process for statements of financial position:

(i) Monetary items (the ones that<br> are already stated in terms of the current measuring unit) are not restated because they<br> are already expressed in terms of the monetary unit current at the end of the reporting<br> period. In an inflationary period, an entity holding monetary assets generates purchasing<br> power loss and holding monetary liabilities generates purchasing power gain, provided<br> that the assets and liabilities are not linked to an adjustment mechanism that offsets,<br> in some extend such effects. The net gain or loss on a monetary basis is included in<br> profit or loss for the period.
(ii) Assets and liabilities subject<br> to adjustments based on specific agreements is adjusted in accordance with such agreements.
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(iii) Non-monetary items stated at<br> current cost at the end of the reporting period, are not restated for presentation purposes<br> in the statement of financial position, but the adjustment process must be completed<br> to determine, in terms of constant measurement unit, the income or loss produced by holding<br> these non-monetary items.
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(iv) Non-monetary items carried at<br> historical cost or at current cost at some earlier date before the reporting date, are<br> restated by an index that reflects the general level of price variation from the acquisition<br> or revaluation date to the closing date, proceeding then to compare the restated amounts<br> of those assets with their recoverable amounts. Income or loss for the period related<br> to depreciation of property, plant and equipment and amortization of Intangible Assets<br> and other non-monetary cost are determined over the new restated amounts.
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(v) When an entity capitalizes borrowing<br> cost in the non-monetary assets, the part of the borrowing cost that compensates for<br> the inflation during the same period is not capitalized.
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(vi) The restatement of non-monetary<br> assets in terms of a current measurement unit at the end of the reporting period, without<br> an equivalent adjustment for tax purposes generates a taxable temporary difference and<br> a deferred income tax liability is recognized and the contra account is recognized as<br> profit or loss for the period. When, beyond the restatement, there is a revaluation of<br> non-monetary assets, the deferred tax related to the restatement is recognized in profit<br> or loss for the period and deferred tax related to the revaluation is recognized in other<br> comprehensive income for the period.
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Description of the main aspects of the restatement process for statements of income and other comprehensive income:

(i) Income and expenses are restated<br> from the date the items were recorded, except for those income or loss items that reflect<br> or include, in their determination, the consumption of assets measured at the currency<br> purchasing power from a date prior to that which the consumption was recorded, which<br> is restated using as a basis the acquisition date of the assets related to the item,<br> except for income or losses arising from comparing the two measurements at currency purchasing<br> power of different dates, for which it requires to identify the compared amounts, to<br> restate them separately and to repeat the comparison, with the restated amounts. 
- 14 -

NOTES TO THE CONDENSED CONSOLIDATEDINTERIM FINANCIAL STATEMENTS

AS OF SEPTEMBER 30, 2020

(Translation of Financial statements originally issued in Spanish – See Note 41)

(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of September 30, 2020, unless otherwise expressly stated)

(ii) Certain income and expenses generated<br> at fair value measurement or for derecognition of non-monetary assets and items of other<br> comprehensive income are disclosed in terms of measuring unit current.
(iii) The gain or loss from monetary<br> position will be classified based on the item that generated it and will be separately<br> disclosed reflecting the inflationary effects over such items.
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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<br> the ones mentioned below, were restated from the dates the components were contributed<br> or otherwise arose according to BCRA Communiqué “A” 6849, for each<br> item.
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(b) Earnings reserved, including<br> the special reserve for the first time application of IFRS, were stated at nominal value<br> at the transition date (legal amount not restated).
--- ---
(c) The accumulated balances of other<br> comprehensive income were recalculated in terms of measuring unit current at the transition<br> date.
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(d) The unappropriated retained earnings<br> were determinated as a difference between the restated net asset at the transition date<br> and the other components of equity, restated as disclosed in the abovementioned paragraphs.
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(ii) After the transition date restatement<br> abovementioned in (i), all equity’s components are restated by applying a general<br> price index as mentioned before from the beginning of the period and each variation of<br> those components is restated from the contribution date or from the moment it was produced<br> by any other way.
--- ---

Other comprehensive income generated after the transition date are presented in terms of the measuring unit current at the end of the reporting period.

Description of the main aspects of the restatement process for the statement of cash flows:

a) All items are restated in terms of the measuring unit current<br> at the end of the reporting period.
b) The monetary gain or losses generated<br> by cash and cash equivalents are separately disclosed in the statement of cash flows<br> after the cash flow from operating investment activities and financing activities, in<br> a separate and independent line, under the description “Effect of inflation on<br> cash and cash equivalent”.
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Reclassification of financial assets and liabilities – Changes in business model

Considering the volatile context in the local markets as described in note 38, during July and August 2020, the Bank’s management decided to update the objective related to the investments in Federal Government Treasury Bonds adjusted by CER 1%, resulting in a reclassification from business model at amortized cost to business model at fair value to profit or loss (FVPL) and the investments in Federal Government Treasury Bonds adjusted by CER maturing 2021, resulting in a reclassification business model at FVPL to business model at fair value through other comprehensive income (FVOCI).

At the reclassifications date abovementioned, the amortized cost of Federal Government Treasury Bonds adjusted by CER 1%, amounted to 2,338,686 and 4,595,929, respectively while the fair value as of that dates amounted to 3,237,658 and 4,951,124, respectively, generating reclassification gains for an amount of 898,972 and 355,195, respectively.

In addition, at the reclassifications date mentioned in the first paragraph, the investments reclassified from FVPL to FVOCI amounted to 3,728,110 and 4,522,706, respectively. At the reclassification dates, the effective interest rates were 31.45% and 33.31%, respectively. As of September 30, 2020, the fair values of such investments amounted to 3,788,000 and 4,545,600, respectively. The interest income recognized during the period amounted to 299,403 and 218,350, respectively.

These reclassifications do not have a material impact on these condensed consolidated interim financial statements.

- 15 -

NOTES TO THE CONDENSED CONSOLIDATEDINTERIM FINANCIAL STATEMENTS

AS OF SEPTEMBER 30, 2020

(Translation of Financial statements originally issued in Spanish – See Note 41)

(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of September 30, 2020, unless otherwise expressly stated)

Other new standards adoptedin the fiscal year

Beginning effects of application of section 5.5. “impairment” of the IFRS 9.

Through Communiqué “A” 6114, the BCRA set specific guidelines within the scope of the convergence process among which it defined the transitory exception to the application of section 5.5. of IFRS 9 “Financial Instruments” (sections B5.5.1 to B5.5.5) up to the fiscal years beginning as of January 1, 2020. In addition, the BCRA established that December 31, 2018 as the transition date and the temporary exclusion for the debt securities of the non-financial public sector under the scope of IFRS 9.

The impact of transition of retained earnings into Expected Credit Losses (ECP) methodology established in section 5.5 of IFRS 9 is as follows:

Retained<br> <br> earnings
Closing balance under previous standards<br> (December 31, 2018) 15,944,082
Recognition of IFRS 9 ECL 528,575
Deferred tax in relation to<br> the above (158,575 )
Opening balance under IFRS<br> 9’S ECL (January 1, 2019) 16,314,082
Total change in equity due<br> to adopting IFRS 9’s ECL 370,000

The following table reconciles the aggregate opening allowances and provisions for financial instruments in accordance with previous standards to the ECL:

Credit<br> loss <br> provision under <br> previous standards Re<br> - <br> measurement ECL<br> under IFRS 9 as<br> of January 1, 2019
Loans and other<br> financing and other items 7,827,072 (548,760 ) 7,278,312
Subtotal 7,827,072 (548,760 ) 7,278,312
Loan commitments 20,185 20,185
Subtotal 20,185 20,185
Total 7,827,072 (528,575 ) 7,298,497

1.      New accounting standard over impairment of financial assets not measured at fair value through profit or loss

1.1   Overview of the ECL principles

Except for public sector exposures which were temporary excluded through BCRA Communiqué “A” 6847, the Bank records an allowance for ECL for all loans, other financing and other debt financial assets not measured at fair value through profit or loss, together with loan commitments and financial guarantee contracts (not measured at fair value through profit or loss) and contract assets and lease receivables, in this section all referred to as ‘financial instruments’. Equity instruments are not subject to impairment under IFRS 9. In accordance with the abovementioned BCRA Communiqué “A” 6847, for public sector exposures the BCRA rule “Regulatory minimum allowance for uncollectibility risk” is continuing to apply and it established that this specific sector is not subject to impairment.

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 ECL are based on the 12 months expected credit loss (hereinafter, 12mECL). The Bank’s policies for determining if there has been a significant increase in credit risk are set out in note 36.1.1 "Definition of significant increase in credit risk, impaired and default”.

The 12mECL is the portion of the lifetime expected credit loss (hereinafter, LTECL) that represents the ECL that result from default events on a financial instrument that are possible within the 12 months after the reporting date.

- 16 -

NOTES TO THE CONDENSED CONSOLIDATEDINTERIM FINANCIAL STATEMENTS

AS OF SEPTEMBER 30, 2020

(Translation of Financial statements originally issued in Spanish – See Note 41)

(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of September 30, 2020, unless otherwise expressly stated)

Both the LTECL and 12mECL are calculated on either an individual basis or a collective basis, depending on the nature of the underlying portfolio of financial instruments. The Bank’s policy for grouping financial assets measured on a collective basis is explained in note 36.1.1.1 “Clients evaluated on a collective basis” and 36.1.1.2 “Clients evaluated on an individual basis”.

The Bank has established a policy to perform an assessment, at the end of each reporting period, of whether a financial instrument’s credit risk has increased significantly since initial recognition, by considering the change in the risk of default occurring over the remaining life of the financial instrument. This is further explained in note 36.1.1 "Definition of significant increase in credit risk, impaired and default”.

Based on the above process, the Bank groups its loans into Stage 1, Stage 2 and Stage 3, including Purchased or originated credit impaired (hereinafter, POCI), as described below:

· Stage<br> 1: when financial instruments are first recognized, the Bank recognizes an allowance<br> based on 12mECL. Stage 1 financial instruments also include facilities where the credit<br> risk has improved and the financial instrument has been reclassified from other stage.
· Stage<br> 2: when a financial instrument has shown a significant increase in credit risk since<br> origination, the Bank records an allowance for the LTECL. Stage 2 financial instruments<br> also include facilities, where the credit risk has improved and the loan has been reclassified<br> from Stage 3.
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· Stage<br> 3: financial instruments considered credit-impaired (as described in note 36.1.1 "Definition<br> of significant increase in credit risk, impaired and default”). The Bank records<br> an allowance for the LTECL.
--- ---
· POCI:<br> financial instruments that are credit impaired on initial recognition. POCI assets are<br> recorded at fair value at original recognition and interest income is subsequently recognized<br> based on a credit-adjusted effective interest rate. The ECL allowance is only recognized<br> or released to the extent that there is a subsequent change in the ECL. It is worthwhile<br> to mention that the Bank has not purchased nor originated POCI financial instruments.
--- ---

For financial instruments for which the Bank has no reasonable expectations of recovering either the entire outstanding amount, or a proportion thereof, the gross carrying amount of the financial instrument is reduced. This is considered a (partial) derecognition of the financial instruments.

1.2   The calculation of Expected Credit Loss

The mechanics of the ECL calculations are outlined below and the key elements are, as follows:

· Probability<br> of Default (PD): is an estimate of the likelihood of default over a given time horizon.<br> A default may only happen at a certain time over the assessed period, if the facility<br> has not been previously derecognized and is still in the portfolio. The concept of PD<br> is further explained in note 36.1.2 “The Bank’s internal rating and PD estimation<br> process”.
· Exposure<br> at Default (EAD): is an estimate of the exposure at a future default date, taking into<br> account expected changes in the exposure after the reporting date, including repayments<br> of principal and interest, whether scheduled by contract or otherwise, expected drawdowns<br> on committed facilities, and accrued interest from missed payments. The EAD is further<br> explained in note 36.1.3 “Exposure at default EAD”.
--- ---
· Loss<br> Given Default (LGD): is an estimate of the loss arising in the case where a default occurs<br> at a given time. It is based on the difference between the contractual cash flows due<br> and those that the lender would expect to receive, including from the realization of<br> any collateral or credit enhancement related to the loan. It is usually expressed as<br> a percentage of the EAD. The LGD is further explained in note 36.1.4 “Loss given<br> default”.
--- --- 
- 17 -

NOTES TO THE CONDENSED CONSOLIDATEDINTERIM FINANCIAL STATEMENTS

AS OF SEPTEMBER 30, 2020

(Translation of Financial statements originally issued in Spanish – See Note 41)

(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of September 30, 2020, unless otherwise expressly stated)

When estimating the ECL, the Bank considers three probability-weighted scenarios (base case, upside and downside) and the amount resulting for the multiplication of the abovementioned scenarios is discounted at the EIR determined at initial recognition.

For credit cards and revolving facilities that include both a loan and an undrawn commitment, ECL is calculated and presented together with the loan. For loan commitments and letters of credit, the ECL is recognized within Provisions.

The mechanics of the ECL method are summarized below:

· Stage<br> 1: the 12mECL is calculated as the portion of LTECL that represents the ECL that result<br> from default events on a financial instrument that are possible within the 12 months<br> after the reporting date. The Bank calculates the 12mECL allowance based on the expectation<br> of a default occurring in the 12 months following the reporting date. These expected<br> 12-month default probabilities are applied to a forecast EAD and multiplied by the expected<br> LGD and discounted by an approximation to the original EIR. This calculation is made<br> for each of the three scenarios (base case, upside and downside), as explained above.
· Stage<br> 2: when a financial instrument has shown a significant increase in credit risk since<br> origination, the Bank records a credit loss expense on financial instruments for the<br> LTECL. The mechanics are similar to those explained above, including the use of different<br> scenarios, but PDs are estimated over the lifetime of the instrument. The expected cash<br> shortfalls are discounted by an approximation to the original effective interest rate.
--- ---
· Stage<br> 3: for financial instruments considered credit-impaired, the Bank recognizes the LTECL<br> for these financial instruments. The method is similar to that for Stage 2 financial<br> instruments, with the PD set at 100%.
--- ---
· Loan<br> commitments and letters of credit: when estimating LTECL for undrawn loan commitments,<br> the Bank estimates the expected portion of the loan commitment that will be drawn down<br> over 12 months or its expected life. The ECL is then based on the present value of the<br> expected shortfalls in cash flows if the loan is drawn down, based on a probability-weighting<br> of the three scenarios. The expected cash shortfalls are discounted at an approximation<br> to the expected interest rate on the loan.
--- ---
· Guarantees<br> and other commitments: the Bank’s liability under each guarantee is measured at<br> the higher of the amount initially recognized less cumulative amortization recognized<br> in the income statement, and the ECL provision. For this purpose, the Bank estimates<br> ECL based on the present value of the expected payments to reimburse the holder for a<br> credit loss that it incurs. The shortfalls are discounted by the risk-adjusted interest<br> rate relevant to the exposure. The calculation is made using a probability-weighting<br> of the three forward-looking scenarios. The ECL related to financial guarantee contracts<br> are recognized within Provisions.
--- ---

1.3  Forward looking information

For the purpose of determining a loss allowance in the calculation of ECL, the impact of macroeconomic variables have to be analyzed in order to adjust historical information to the current conditions and the forward looking perspectives in the near future. To this end, different and probable macroeconomic scenarios have to be weighed (base case, upside and downside), using relevant variables in credit risk determination (like GDP growth, interest rate and CPI).

The inputs and models used for calculating ECL may not always capture all characteristics of the market at the date of these condensed consolidated interim financial statements. To reflect this, qualitative adjustments or overlays are occasionally made as temporary adjustments. Detailed information about these inputs and sensitivity analysis are provided in note 36.2 “Forward looking information use in ECL models”.

- 18 -

NOTES TO THE CONDENSED CONSOLIDATEDINTERIM FINANCIAL STATEMENTS

AS OF SEPTEMBER 30, 2020

(Translation of Financial statements originally issued in Spanish – See Note 41)

(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of September 30, 2020, unless otherwise expressly stated)

1.4 Debt instruments measured at fair value through OCI

The ECL for debt instruments measured at fair value through Other Comprehensive Income (OCI) do not reduce the carrying amount of these financial instruments in the statement of financial position, which remains at fair value. Instead, an amount equal to the allowance that would arise if the assets were measured at amortized cost is recognized in OCI as an accumulated impairment amount, with a corresponding charge to profit or loss. The accumulated loss recognized in OCI is recycled to the profit and loss upon derecognition of the assets.

1.5 Credit cards and other revolving facilities

For credit cards and other revolving facilities, the Bank does not limit its exposure to credit losses to the contractual notice period, but instead calculates ECL over a period that reflects the Bank’s expectations of the customer behavior, its unused agreed commitments, its likelihood of default and the Bank’s future risk mitigation procedures, which could include reducing or cancelling the facilities. Based on the Bank’s methodology, the period over which the Bank calculates ECL for these products is three years.

The interest rate used to discount the ECL for credit cards is based on the average EIR that is expected to be charged over the expected period of exposure to the facilities. This estimation takes into account that some facilities are repaid in full each month and are consequently charged no interest.

1.6 Write-offs

The Bank´s financial instruments are derecognized after the first month in which the Bank has no reasonable expectation of recovering a financial instrument in its entirety or a portion thereof. If the amount written off is greater than the accumulated loss allowance, the difference is first treated as an addition to the allowance that is then applied against the gross carrying amount. Any subsequent recoveries impact on the income statement of the current period under “Other operating income”.

1.7 Forborne and modified loans

The Bank considers a loan forborne when such modifications are provided as a result of the borrower’s present or expected financial difficulties. Forbearance may involve extending the payment arrangements and the agreement of new loan conditions. Once the terms have been renegotiated, any impairment is measured using the original EIR as calculated before the modification of terms. It is the Bank’s policy to monitor forborne loans to help ensure that future payments continue to be likely to occur. Derecognition decisions and classification between Stage 2 and Stage 3 are determined on a case-by-case basis for commercial portfolio and collectively for consumer portfolio. If these procedures identify a loss in relation to a loan, it is disclosed and managed as an impaired Stage 3 forborne asset until it is collected or written off.

When the loan has been renegotiated or modified, but not derecognized, considers whether the assets should be classified in Stage 3. Once an asset has been classified as forborne, it will remain in Stage 2 until it is fully collected or considered impaired (Stage 3).

If modifications are substantial, the loan is derecognized and a new loan with different conditions is recognized.

1.8 Collateral valuation

To mitigate its credit risks on financial instruments, the Bank seeks to use collateral, where possible. The collateral comes in various forms, such as cash, securities, letters of credit/guarantees, real estate, receivables, other non-financial assets and credit enhancements, such as netting agreements. Collateral, unless repossessed, is not recorded on the Bank’s statement of financial position. However, the fair value of collateral affects the calculation of ECL, in certain products and customers assessed on an individual basis. It is generally assessed, at a minimum, at inception and re-assessed on a periodically basis.

- 19 -

NOTES TO THE CONDENSED CONSOLIDATEDINTERIM FINANCIAL STATEMENTS

AS OF SEPTEMBER 30, 2020

(Translation of Financial statements originally issued in Spanish – See Note 41)

(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of September 30, 2020, unless otherwise expressly stated)

To the extent possible, the Bank uses active market data for valuing financial assets held as collateral. Other financial assets which do not have readily determinable market values are valued using internal procedures. Non-financial collateral, such as real estate, is valued based on data provided by third parties, such as mortgage brokers.

1.9 . Collateral repossessed

The Bank’s policy is to determine whether a repossessed asset can be best used for its internal operations or should be sold. Assets determined to be useful for the internal operations are transferred to their relevant asset category at the lower of their repossessed value or the carrying value of the original secured asset.

Assets for which selling is determined to be a better option are transferred to assets held for sale at their fair value (if financial assets) and fair value less cost to sell for non-financial assets at the repossession date in, line with the Bank’s policy.

In its normal course of business, the Bank does not physically repossess properties or other assets in its retail portfolio, but engages external agents to recover funds, generally at auction, to settle outstanding debt. Any surplus funds are returned to the customers/obligors. As a result of this practice, the residential properties under legal repossession processes are not recorded on the balance sheet.

2. Amendments to the Conceptual<br> Framework for Financial Reporting:

The modification to the Conceptual Framework includes some new concepts, provides updated definitions and recognition criteria for assets and liabilities and clarifies some important concepts.

The changes to the Conceptual Framework may affect the application of IFRS in situations where no standard applies to a particular transaction or event.

This standard did not have a material impact on these condensed consolidated interim financial statements since, currently, there are not material uncertainties about the application to a particular transaction or event.

3. IFRS 3 “Business Combination”<br> – amendments in definition of a business:

These amendments will help entities determine whether an acquisition made is a business or the purchase of a group of assets. The new amended definition emphasizes that the output of a business is to provide goods and services to customers, whereas the previous definition focused on returns in the form of dividends, lower costs or other economic benefits. This standard did not have a material impact on these condensed consolidated interim financial statements since, currently, there are not business combination transactions.

4. IAS 1 “Presentation of<br> Financial Statements” and IAS 8 “Accounting Policies, Changes in Accounting<br> Estimates and Errors” – amendments to definition of material:

The new definition states that information is material if omitting, misstating or obscuring it could reasonably be expected to influence decisions that the primary users of general purpose financial statements make on the basis of those financial statements. The amendments clarify that materiality will depend on the nature or magnitude of information or both. These amendments replaced the threshold “could influence” with “could reasonably be expected to influence”. This implies that the materiality assessment will need to take into account how primary users could reasonably be expected to be influenced in making economic decisions. This standard did not have a material impact on these condensed consolidated interim financial.

5. IFRS 16 “leases”<br> – Amendment that provides accounting relief to lessees on lease modification accounting<br> for rent concessions arising as a direct consequence of the COVID-19:

This amendment excepts lessees to assess lease arrangement, on an individual basis, whether a rent concession arising as a direct consequence of COVID-19 pandemic, is a lease modification and allows lessees to account the rent concession as if it was not a lease modification and charged it in the statement of income. This applies to rent concession related to COVID-19 that reduces lease payments due on or before June 30, 2021. This standard did not have a material impact on these condensed consolidated interim financial (see note 39).

- 20 -

NOTES TO THE CONDENSED CONSOLIDATEDINTERIM FINANCIAL STATEMENTS

AS OF SEPTEMBER 30, 2020

(Translation of Financial statements originally issued in Spanish – See Note 41)

(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of September 30, 2020, unless otherwise expressly stated)

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 FACPCA, 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 come effective.

a) Amendments to IFRS 3 - Reference<br> to the Conceptual: the amendments are intended to replace a reference to a previous version<br> of the IASB’s Conceptual Framework with a reference to the current version issued<br> in March 2018 without significantly changing its requirements. The amendments add<br> an exception to the recognition principle of IFRS 3 to avoid the issue of potential ‘day<br> 2’ gains or losses arising for liabilities and contingent liabilities that would<br> be within the scope of IAS 37 “Provisions, Contingent Liabilities and Contingent<br> Assets” or IFRIC 21 “Levies”, if incurred separately. The exception<br> requires entities to apply the criteria in IAS 37 or IFRIC 21, respectively, instead<br> of the Conceptual Framework, to determine whether a present obligation exists at the<br> acquisition date. At the same time, the amendments add a new paragraph to IFRS 3 to clarify<br> that contingent assets do not qualify for recognition at the acquisition date. This amendment<br> is applicable as of January 1, 2022. The Bank does not expect this standard to have<br> a material impact on the financial statements.
b) Amendments to IAS 16 - Property,<br> Plant and Equipment (PP&E): proceeds before Intended Use. The amendment prohibits<br> entities from deducting from the cost of an item of PP&E, any proceeds of the sale<br> of items produced while bringing that asset to the location and condition necessary for<br> it to be capable of operating in the manner intended by management. Instead, an entity<br> recognizes the proceeds from selling such items, and the costs of producing those items,<br> in profit or loss. This amendment is applicable as of January 1, 2022. The Bank<br> does not expect this standard to have a material impact on the financial statements.
--- ---
c) Amendments to IAS 37 - Onerous<br> Contracts – Costs of Fulfilling a Contract: the IASB issued amendments to IAS 37<br> to specify which costs an entity needs to include when assessing whether a contract is<br> onerous or loss-making. The amendments apply a ‘directly related cost approach’.<br> The costs that relate directly to a contract to provide goods or services include both<br> incremental costs and an allocation of costs directly related to contract. The impact<br> of these amendments on Entities that previously applied the incremental cost approach,<br> is that they will see provisions increase to reflect the inclusion of costs related directly<br> to contract activities, whilst entities that previously recognized contract loss provisions<br> using the guidance from the former standard, IAS 11 Construction Contracts, will<br> be required to exclude the allocation of indirect overheads from their provisions. This<br> amendment is applicable as of January 1, 2022. The Bank does not expect this standard<br> to have a material impact on the financial statements.
--- ---
d) Annual improvement cycle (2018-2020): the following is a summary<br> of the amendments from the 2018-2020 annual improvements cycle:
--- ---
· IFRS<br> 1 First-time Adoption of International Financial Reporting – Subsidiary as a first-time<br> adopter: the amendment<br> permits a subsidiary that elects to apply paragraph D16(a) of IFRS 1 to measure<br> cumulative translation differences using the amounts reported by the parent, based on<br> the parent’s date of transition to IFRS. This amendment is also applied to an associate<br> or joint venture that elects to apply paragraph D16(a) of IFRS 1. This amendment<br> is applicable as of 1 January 2022.
--- ---
· IFRS<br> 9 Financial Instruments Fees<br> in the ’10 per cent’ test for derecognition of financial liabilities: the<br> amendment clarifies the fees that an entity includes when assessing whether the terms<br> of a new or modified financial liability are substantially different from the terms of them original financial liability. These fees include only those paid<br>or received between the borrower and the lender, including fees paid or received by either the borrower or lender on the other’s<br>behalf.
--- --- 
- 21 -

NOTES TO THE CONDENSED CONSOLIDATEDINTERIM FINANCIAL STATEMENTS

AS OF SEPTEMBER 30, 2020

(Translation of Financial statements originally issued in Spanish – See Note 41)

(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of September 30, 2020, unless otherwise expressly stated)

· IFRS<br> 16 “Leases” Illustrative examples - Lease<br> incentives: the amendment removes the Example 13 accompanying IFRS 16 of payments from<br> the lessor relating to leasehold improvements. This removes potential confusion regarding<br> the treatment of lease incentives when applying IFRS 16.

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 statement of financial position and they are, therefore, an integral part of the total risk of the Bank.

As of September 30, 2020 and December 31, 2019, the Bank maintains the following maximum exposures to credit risk related to this type of transactions:

09/30/2020 12/31/2019
Undrawn commitments of credit cards and checking accounts 97,475,676 111,710,802
Guarantees granted (1) 1,172,854 2,102,164
Letters of credit 872,911 545,983
Overdraft and unused agreed commitments (1) 711,938 1,286,924
100,233,379 115,645,873
Less: Allowance for ECL (18,786 ) (21,122 )
Total 100,214,593 115,624,751
(1) Includes transactions not covered<br> by BCRA debtor classification standard. For Guarantee granted, it includes an amount<br> of 169,654 and 218,132 as of September 30, 2020 and December 31, 2019, respectively.<br> For Overdraft and unused agreed commitments, it includes an amount of 128,812 and 231,770<br> as of September 30, 2020 and December 31, 2019, respectively.
--- ---

Risks related to the contingent transactions described above have been evaluated and are controlled within the framework of the Bank’s credit risk policy, described in note 41 to the consolidated financial statements as of December 31, 2019, already issued.

5. 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 6 discloses financial assets measured at fair value through profit or loss on a recurring basis and financial assets not recognized at fair value. This classification is made pursuant to the expressed in note 3 “Basis for the preparation of these financial statements and applicable accounting standards” for the annual consolidated financial statements as of December 31, 2019, already issued. Additionally, note 6 explains the information related to the valuation process.

As a consequence, 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 profit or loss, 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.

- 22 -

NOTES TO THE CONDENSED CONSOLIDATEDINTERIM FINANCIAL STATEMENTS

AS OF SEPTEMBER 30, 2020

(Translation of Financial statements originally issued in Spanish – See Note 41)

(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of September 30, 2020, unless otherwise expressly stated)

For the purpose of assessing the Bank’s credit risk exposure and identifying material credit risk concentration, disclosures regarding to credit risk of financial assets and items not recognized in the statement of financial position, are as follows:

5.1 Loans and other financing measured at amortized cost

According to the nature of the information to be disclosed and the loans characteristic, the Bank groups them as follows:

09/30/2020 12/31/2019
Loans and other financing 246,263,313 276,333,149
Collective assessment 172,891,187 155,789,128
Individual assessment 73,372,126 120,544,021
Less: Allowance for ECL (*) (8,584,989 ) (6,199,709 )
237,678,324 270,133,440

(*) As explain in note 3 section “applicable accounting standards” point a), ECL are not calculated to public sector exposures.

The following table shows the credit quality and the debt balance to credit risk, based on the Bank’s credit risk rating system and the year-end stage classification, taking into account the several guidelines related to flexible conditions for credit established by the BCRA to moderate the pandemic effects generated by COVID-19 (see also note 36.2). The amounts are presented before the impairment allowances.

09/30/2020
Internal rating grade Range PD Stage 1 Stage 2 Stage  3 Total %
Performing 223,358,789 14,648,285 238,007,074 96.65 %
High grade 0.00%-3.50% 176,127,154 141,621 176,268,775 71.58 %
Standard grade 3.51%-7.00% 25,892,370 1,407,390 27,299,760 11.09 %
Sub-standard grade 7.01%-33.00% 21,339,265 13,099,274 34,438,539 13.98 %
Past due but not impaired 33.01%-99.99% 339,026 3,964,861 4,303,887 1.75 %
Not-performing 100% 3,952,352 3,952,352 1.60 %
Total 223,697,815 18,613,146 3,952,352 246,263,313 100 %
90.84 % 7.56 % 1.60 % 100 %
12/31/2019
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Internal rating grade Range PD Stage 1 Stage 2 Stage  3 Total %
Performing 251,577,906 12,185,308 263,763,214 95.45 %
High grade 0.00%-3.50% 210,964,474 137,831 211,102,305 76.40 %
Standard grade 3.51%-7.00% 20,826,750 1,926,874 22,753,624 8.23 %
Sub-standard grade 7.01%-33.00% 19,786,682 10,120,603 29,907,285 10.82 %
Past due but not impaired 33.01%-99.99% 440,518 7,393,074 7,833,592 2.84 %
Not-performing 100% 4,736,343 4,736,343 1.71 %
Total 252,018,424 19,578,382 4,736,343 276,333,149 100 %
91.20 % 7.09 % 1.71 % 100 %
5.1.1 Loans on individual assessment
--- ---

The table below shows the credit quality and the debt balance to credit risk of loans based 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 36 section “Credit risk”.

- 23 -

NOTES TO THE CONDENSED CONSOLIDATEDINTERIM FINANCIAL STATEMENTS

AS OF SEPTEMBER 30, 2020

(Translation of Financial statements originally issued in Spanish – See Note 41)

(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of September 30, 2020, unless otherwise expressly stated)

09/30/2020<br> (*)
Internal<br> rating grade Range<br> PD Stage<br> 1 Stage<br> 2 Stage  3 Total %
Performing 67,519,361 3,362,338 70,881,699 96.60 %
High grade 0.00%-3.50% 64,708,497 5 64,708,502 88.19 %
Standard grade 3.51%-7.00% 956,967 956,967 1.30 %
Sub-standard grade 7.01%-33.00% 2,810,864 2,405,366 5,216,230 7.11 %
Past due but not impaired 33.01%-99.99% 519,055 519,055 0.71 %
Not-performing 100% 1,971,372 1,971,372 2.69 %
Total 67,519,361 3,881,393 1,971,372 73,372,126 100 %
92.02 % 5.29 % 2.69 % 100 %
12/31/2019
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Internal<br> rating grade Range<br> PD Stage<br> 1 Stage<br> 2 Stage<br> 3 Total %
Performing 114,995,184 2,601,206 117,596,390 97.55 %
High grade 0.00%-3.50% 108,792,172 9,629 108,801,801 90.26 %
Standard grade 3.51%-7.00% 23,245 1,063,763 1,087,008 0.90 %
Sub-standard grade 7.01%-33.00% 6,179,767 1,527,814 7,707,581 6.39 %
Past due but not impaired 33.01%-99.99% 1,247,732 1,247,732 1.04 %
Not-performing 100% 1,699,899 1,699,899 1.41 %
Total 114,995,184 3,848,938 1,699,899 120,544,021 100 %
95.40 % 3.19 % 1.41 % 100 %

(*) See also note 36.2.

5.1.2 Loans on 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 36 section “Credit risk”.

09/30/2020 (*)
Internal rating grade Range PD Stage 1 Stage 2 Stage 3 Total %
Performing 155,839,428 11,285,947 167,125,375 96.67 %
High grade 0.00%-3.50% 111,418,657 141,616 111,560,273 64.53 %
Standard grade 3.51%-7.00% 25,892,370 450,423 26,342,793 15.24 %
Sub-standard grade 7.01%-33.00% 18,528,401 10,693,908 29,222,309 16.90 %
Past due but not impaired 33.01%-99.99% 339,026 3,445,806 3,784,832 2.18 %
Not-performing 100% 1,980,980 1,980,980 1.15 %
Total 156,178,454 14,731,753 1,980,980 172,891,187 100 %
90.33 % 8.52 % 1.15 % 100 %
12/31/2019
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Internal rating grade Range PD Stage 1 Stage 2 Stage 3 Total %
Performing 136,582,722 9,584,102 146,166,824 93.82 %
High grade 0.00%-3.50% 102,172,302 128,202 102,300,504 65.66 %
Standard grade 3.51%-7.00% 20,803,505 863,111 21,666,616 13.91 %
Sub-standard grade 7.01%-33.00% 13,606,915 8,592,789 22,199,704 14.25 %
Past due but not impaired 33.01%-99.99% 440,518 6,145,342 6,585,860 4.23 %
Not-performing 100% 3,036,444 3,036,444 1.95 %
Total 137,023,240 15,729,444 3,036,444 155,789,128 100 %
87.95 % 10.10 % 1.95 % 100 %

(*) See also note 36.2.

- 24 -

NOTES TO THE CONDENSED CONSOLIDATEDINTERIM FINANCIAL STATEMENTS

AS OF SEPTEMBER 30, 2020

(Translation of Financial statements originally issued in Spanish – See Note 41)

(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of September 30, 2020, unless otherwise expressly stated)

5.2 Other debt securities at amortized<br> cost

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 types of debt securities that compose each financial trust. That is, the factor to be used will vary in relation to the holding debt securities (A or B). It is assumed that the EAD is equal to the debt balance.

For corporate bonds issued by the Bank’s customers, PD and LGD parameters calculated for loan exposures of those customers were used. The corporate bonds’ EAD is considered equal to the debt balance, because there is not available information of such instrument´s behavior when it defaulted.

The table below shows the exposures gross of impairment allowances by stages:

09/30/2020
Stage 1 Stage 2 Stage 3 Total %
Corporate bonds 797,909 797,909 76.66 %
Financial trust 242,975 242,975 23.34 %
Total 1,040,884 1,040,884
100 % 100 %
12/31/2019
--- --- --- --- --- --- --- --- --- --- --- ---
Stage 1 Stage 2 Stage 3 Total %
Corporate bonds 1,974,743 1,974,743 59.47 %
Financial trust 1,345,987 1,345,987 40.53 %
Total 3,320,730 3,320,730
100 % 100 %

The related ECL for corporate bonds as of September 30, 2020 and December 31, 2019 amounted to 3,104 and 1,876, respectively. The ECL related to financial trusts as of September 30, 2020 and December 31, 2019 amounted to 300 and 493, respectively.

5.3 Government securities at amortized<br> cost or fair value through OCI

This group includes federal government securities, provincial or Central Bank 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 detail of these investments and their characteristics are disclosed in note 37.

5.4 Prisma Medios de Pago SA

The ECL related to the payments to be collect for the sale of Prisma Medios de Pago is recognized in the item “Other financial assets”, as mentioned in note 11 and amounted to 9,759 and 2,023 as of September 30, 2020 and December 31, 2019, respectively.

During the nine-month periods ended September 30, 2020 and 2019, losses for ECL related to loans and other financing and other debt securities measured at amortized cost amounted to 5,249,218 and 3,461,430, respectively, and were recognized in the condensed consolidated interim statements of income under the item “allowance for loan losses”.

In addition, in exhibit R “Value adjustment for credit losses for credit losses – Allowance for uncollectibility risk” are also disclosed the ECL movements by portfolio and products.

- 25 -

NOTES TO THE CONDENSED CONSOLIDATEDINTERIM FINANCIAL STATEMENTS

AS OF SEPTEMBER 30, 2020

(Translation of Financial statements originally issued in Spanish – See Note 41)

(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of September 30, 2020, unless otherwise expressly stated)

6. 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 an 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)<br> observable in active markets that the Bank accesses to at the measurement day for identical<br> assets or liabilities. The Bank considers markets as active only if there are sufficient<br> trading activities with regards to the volume and liquidity of the identical assets or<br> liabilities and when there are binding and exercisable price quotes available at each<br> reporting period.
- Level 2: Valuation techniques for<br> which the data and variables having a significant impact on the determination of the<br> fair value recognized or disclosed are observable for the asset or liability, either<br> directly or indirectly. Such inputs include quoted prices for similar assets or liabilities<br> 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,<br> and credit spreads. In addition, adjustments to level 2 inputs may be required for the<br> condition or location of the asset or the extent to which it relates to items that are<br> comparable to the valued instrument. However, if such adjustments are based on unobservable<br> inputs which are significant to the entire measurement, the Bank will classify the instruments<br> as Level 3.
--- ---
- Level 3: Valuation techniques for<br> which the data and variables having a significant impact on the determination of the<br> fair value recognized or disclosed 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, as of September 30, 2020 and December 31, 2019:

Financial<br> assets and financial liabilities measured at fair value on <br><br> a recurring basis as of September 30, 2020
Description Total Level<br> 1 Level<br> 2 Level<br> 3
Financial assets
At fair value through profit or loss
Debt Securities at fair value through profit or loss 16,546,573 16,471,531 75,042
Derivative financial instruments 13,685 118 13,567
Other financial assets 670,345 622,485 47,860
Equity instruments at fair value through profit or loss 1,626,591 6,858 1,619,733
At fair value through OCI
Other debt securities 218,721,026 91,970,821 126,750,205
Total 237,578,220 109,071,813 126,763,772 1,742,635 
- 26 -

NOTES TO THE CONDENSED CONSOLIDATEDINTERIM FINANCIAL STATEMENTS

AS OF SEPTEMBER 30, 2020

(Translation of Financial statements originally issued in Spanish – See Note 41)

(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of September 30, 2020, unless otherwise expressly stated)

Financial assets and financial liabilities measured at fair value on <br>a recurring basis as of September 30, 2020
Description (contd.) Total Level 1 Level 2 Level 3
Financial liabilities
At fair value through profit or loss
Derivatives financial instruments 381 357 24
Total 381 357 24
Financial assets and financial liabilities measured at fair value on <br> a recurring basis as of December 31, 2019
--- --- --- --- --- --- --- --- ---
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 6,939,904 5,351,459 591,719 996,726
Derivative financial instruments 61,982 38,636 23,346
Other financial assets 451,404 423,276 28,128
Equity instruments at fair value through profit or loss 1,878,634 11,535 1,867,099
At fair value through OCI
Other debt securities 57,330,842 45,232,250 12,098,592
Total 66,662,766 51,057,156 12,713,657 2,891,953
Financial liabilities
At fair value through profit or loss
Derivatives financial instruments 940,073 940,073
Total 940,073 940,073

Description of 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, valuation techniques based on own assumptions were used. For this approach, the Bank mainly used the cash flow discount model.

- 27 -

NOTES TO THE CONDENSED CONSOLIDATEDINTERIM FINANCIAL STATEMENTS

AS OF SEPTEMBER 30, 2020

(Translation of Financial statements originally issued in Spanish – See Note 41)

(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of September 30, 2020, unless otherwise expressly stated)

As of September 30, 2020 and December 31, 2019, 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 instruments recognized at fair value categorized as level 3:

As of September 30, 2020
Description Debt securities Other financial<br><br> assets Equity<br><br> instruments at<br><br> fair value<br><br> through profit or<br><br> loss
Amount at the beginning 996,726 28,128 1,867,099
Transfers to Level 3
Transfers from Level 3
Profit and loss 163,325 4,090 94,522
Recognition and derecognition (982,427 ) 19,366 9,244
Monetary effects (102,582 ) (3,724 ) (351,132 )
Amount at end of the period 75,042 47,860 1,619,733
As of December 31, 2019
--- --- --- --- --- --- --- --- --- ---
Description Debt securities Other financial <br><br>assets Equity<br><br> instruments at<br> fair value<br> through profit or <br><br>loss
Amount at the beginning 2,428,687 171,502 85,419
Transfers to Level 3
Transfers from Level 3
Profit and loss 795,324 16,831 (134,259 )
Recognition and derecognition (1,532,573 ) (128,689 ) 2,854,090 (*)
Monetary effects (694,712 ) (31,516 ) (938,151 )
Amount at end of the fiscal year 996,726 28,128 1,867,099

(*) It is mainly related to the reclassification from non-current assets held for sale of Prisma Medios de Pago SA. See also note 11.

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 and liabilities measured at fair value on a recurring basis for which the Bank uses an internal model (with the exception of the Bank’s holding in Prisma Medios de Pago SA for the reasons described in note 11).

Fair<br> value of Range<br> of inputs
Level<br> 3<br> Assets Valuation Significant<br> <br> unobservable 09/30/2020
09/30/2020 Technique inputs Range<br> of inputs
Low High Unit
Debt Securities<br> of Financial Trusts 58,240 Income approach<br> (discounted cash flow) Discount rate<br> in pesos 29.66 33.70 %
Debt Securities of Financial<br> Trusts Provisional 64,662 Income approach (discounted<br> cash flow) Discount rate in pesos 39.08 40.92 % 
- 28 -

NOTES TO THE CONDENSED CONSOLIDATEDINTERIM FINANCIAL STATEMENTS

AS OF SEPTEMBER 30, 2020

(Translation of Financial statements originally issued in Spanish – See Note 41)

(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of September 30, 2020, unless otherwise expressly stated)

Fair<br> value of Range of inputs
Level<br> 3 <br> Assets Valuation Significant<br><br> unobservable 12/31/2019
12/31/2019 Technique inputs Range of inputs
Low High Unit
Debt<br> Securities of Financial Trusts 263,338 Income<br> approach (discounted cash flow) Discount<br> rate in pesos 48.50 74.06 %
Debt<br> Securities of Financial Trusts Provisional 761,516 Income<br> approach (discounted cash flow) Discount<br> rate in pesos 39.27 44.97 %

The table below describes the effect of changing the significant unobservable inputs to reasonable 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.

09/30/2020 12/31/2019
Favorable<br><br> changes Unfavorable<br><br> changes Favorable<br><br> changes Unfavorable<br><br> changes
Debt / Interests in  Securities of Financial Trusts 145 (145 ) 5,079 (4,491 )
Debt Securities of Financial Trusts Provisional 18 (18 ) 972 (949 )

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 September 30, 2020 and December 31, 2019, the Bank has not recognized any transfers between levels 1, 2 and 3.

Financial assets and liabilities not recognized 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:

- Instruments with fair value similar<br> to the carrying amount: financial assets and liabilities that are liquid or have short-term<br> maturities (less than three months) were deemed to have a fair value similar to the carrying<br> amount.
- Fixed and variable rate of financial<br> instruments: the fair value of financial assets was recognized discounting future cash<br> flows at current market rates, for each period or fiscal year, as applicable, for financial<br> instruments of similar characteristics. The estimated fair value of fixed-interest rate<br> 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<br> portfolio.
--- ---
- For public listed assets and liabilities,<br> or those for which the prices are reported by certain renown pricing providers, the fair<br> value was determined based on such prices.
--- --- 
- 29 -

NOTES TO THE CONDENSED CONSOLIDATEDINTERIM FINANCIAL STATEMENTS

AS OF SEPTEMBER 30, 2020

(Translation of Financial statements originally issued in Spanish – See Note 41)

(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of September 30, 2020, unless otherwise expressly stated)

The following table shows a comparison between the fair value and the carrying amount of financial instruments not measured at fair value as of September 30, 2020 and December 31, 2019:

09/30/2020
Carrying<br><br> amount Level<br> 1 Level<br> 2 Level<br> 3 Fair<br> <br>Value
Financial<br> assets
Cash<br> and deposits in banks 112,933,534 112,933,534 112,933,534
Repo<br> transactions 53,970,838 53,970,838 53,970,838
Other<br> financial assets 14,897,877 14,897,877 14,897,877
Loans<br> and other financing 237,678,324 223,208,226 223,208,226
Other<br> debt securities 21,526,746 635,995 20,568,160 268,090 21,472,245
Financial<br> assets delivered as guarantee 12,228,348 12,228,348 12,228,348
453,235,667 194,666,592 20,568,160 223,476,316 438,711,068
Financial<br> liabilities
Deposits 492,709,538 223,081,066 269,473,552 492,554,618
Other financial liabilities 28,635,362 27,415,998 1,211,681 28,627,679
Financing received from<br> the BCRA and other financial entities 687,918 390,778 289,928 680,706
Issued corporate bonds 5,018,613 4,039,485 4,039,485
Subordinated<br> corporate bonds 31,529,966 22,852,500 22,852,500
558,581,397 250,887,842 28,393,594 269,473,552 548,754,988
12/31/2019
--- --- --- --- --- --- --- --- --- --- ---
Carrying<br><br> amount Level<br> 1 Level<br> 2 Level<br> 3 Fair<br><br> Value
Financial assets
Cash and<br> deposits in banks 123,120,508 123,120,508 123,120,508
Repo transactions 1,330,400 1,330,400 1,330,400
Other financial assets 7,086,358 7,086,358 7,086,358
Loans and other financing 270,133,440 381,208 237,297,282 237,678,490
Other debt securities 21,616,735 1,910,912 20,347,261 1,491,976 23,750,149
Financial<br> assets delivered as guarantee 13,052,299 11,735,148 11,735,148
436,339,740 145,564,534 20,347,261 238,789,258 404,701,053
Financial liabilities
Deposits 321,455,062 179,914,252 141,817,869 321,732,121
Repo transactions 1,225,960 1,225,960 1,225,960
Other financial liabilities 27,110,965 25,762,088 1,337,836 27,099,924
Financing received from<br> the BCRA and other financial entities 2,746,369 2,246,906 432,315 2,679,221
Issued corporate bonds 6,756,507 1,687,627 3,251,452 4,939,079
Subordinated<br> corporate bonds 29,730,457 22,427,007 22,427,007
389,025,320 209,149,206 25,884,785 145,069,321 380,103,312 
- 30 -

NOTES TO THE CONDENSED CONSOLIDATEDINTERIM FINANCIAL STATEMENTS

AS OF SEPTEMBER 30, 2020

(Translation of Financial statements originally issued in Spanish – See Note 41)

(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of September 30, 2020, unless otherwise expressly stated)

7. INVESTMENTS IN ASSOCIATES AND JOINT ARRANGEMENTS

7.1 Associates entities

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 June 30, 2020. Additionally, the Bank has considered, when applicable, the material transactions or events occurring between July 1, 2020, and September 30, 2020.

The following table presents the summarized financial information on the Bank’s investment in the associate:

Summarized statement of financial position 09/30/2020 12/31/2019
Total assets 46,073 38,495
Total liabilities 7,505 9,624
Shareholders’ equity 38,568 28,871
Proportional Bank’s interest 5 % 5 %
Investment carrying amount 1,928 1,444

As of September 30, 2020 and 2019, the investment carrying amount in the net income for the periods amounted to (1,200) and 615, respectively.

b) Play Digital SA

As explain in note 1, the Bank holds and investment in the associate Play Digital SA which, as of September 30, 2020 amounted to 43,500. Although as of the date of issuance of these condensed consolidated interim financial statements the Bank’s interest in Play Digital SA is 11.7715%, the investment is also classified as associate according to IAS 28 due to the representation that Banco Macro SA has in the Board of Director of the company.

7.2 Joint ventures

The Bank participates in the following joint ventures, implemented through Uniones Transitorias de Empresas (UTE, for its acronym in Spanish):

a) Banco Macro SA – Wordline<br> Argentina SA Unión transitoria: on April 7, 1998, the Bank executed an agreement<br> with Siemens Itron Services SA to organize an UTE controlled on a joint basis through<br> a 50% interest, the purpose of which is to facilitate a data processing center for the<br> tax administration, to modernize the systems and tax collection processes of the Province<br> 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 09/30/2020 12/31/2019
Total assets 369,750 465,383
Total liabilities 97,442 113,205
Shareholders’ equity 272,308 352,178
Proportional Bank’s interest 50 % 50 %
Investment carrying amount 136,154 176,089

As of September 30, 2020 and 2019, the investment carrying amount in the net income for the periods amounted to 49,807 and 105,437, respectively.

- 31 -

NOTES TO THE CONDENSED CONSOLIDATEDINTERIM FINANCIAL STATEMENTS

AS OF SEPTEMBER 30, 2020

(Translation of Financial statements originally issued in Spanish – See Note 41)

(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of September 30, 2020, unless otherwise expressly stated)

b) Banco Macro SA – Gestiva SA<br> Unión transitoria: on May 4, 2010 and August 15, 2012, the Bank executed<br> with Gestiva SA the UTE agreement to form “Banco Macro SA – Gestiva SA –<br> Unión Transitoria de Empresas”, under joint control, the purpose of which<br> is to render the integral processing and management services of the tax system of the<br> Province of Misiones, the management thereof and tax collection services. The Bank holds<br> a 5% interest in this UTE.

On June 27, 2018, the Bank, the UTE and the tax authorities of the Misiones provincial government entered into an agreement of “termination by mutual agreement” of the adaptation agreement, without implying or modifying the Bank’s rights and obligations as a financial agent of the province for the services provision established in the agreement. As of September 30, 2020 and December 31, 2019, according to the above-mentioned, the remaining investment amounted to 36 and 1,414, respectively.

8. OTHER FINANCIAL AND NON-FINANCIAL ASSETS

The breakdown of other financial and non-financial assets as of September 30, 2020 and December 31, 2019 is as follows:

Other financial assets 09/30/2020 12/31/2019
Receivables from spot sales of foreign currency pending settlement 7,658,638 16,439
Sundry debtors (see note 11) 6,231,067 5,745,949
Receivables from other spot sales pending settlement 850,735 1,115,103
Private securities 670,345 451,403
Receivables from spot sales of government securities pending settlement 100,867 7,861
Other 76,565 213,612
Allowances (19,995 ) (12,605 )
15,568,222 7,537,762
Other non-financial assets 09/30/2020 12/31/2019
--- --- --- --- ---
Investment property (see Exhibit F) 936,112 886,284
Advanced prepayments 608,487 287,722
Tax advances 454,732 46,068
Other 78,568 107,174
2,077,899 1,327,248

Disclosures related to allowance for ECL are detailed in note 5 “Loss allowance for credit losses on credit exposures not measured at fair value through profit or loss”.

9. 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<br> of the parent of the Bank;
--- ---
- members of the same group;
--- ---
- one entity is an associate (or<br> 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 September 30, 2020 and December 31, 2019, amounts related to transactions performed with the related parties are as follows:

- 32 -

NOTESTO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

ASOF SEPTEMBER 30, 2020

(Translation of Financial statements originally issued in Spanish – See Note 41)

(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of September 30, 2020, unless otherwise expressly stated)

Information as of September 30, 2020
Main subsidiaries (1)
Macro Bank<br><br>Limited Macro<br><br>Securities<br><br>SA Macro<br><br>Fondos<br><br>SGFCISA Argenpay<br><br> <br>SAU Associates Key<br><br>management<br><br>personnel (2) Other<br> related<br> parties Total
ASSETS
Cash and deposit in banks 610 610
Derivative instruments 12,340 12,340
Repo transaction 732,204 732,204
Loans and other financing  (3) 30 30
Documents
Overdraft 23,628 233,499 257,127
Credit Cards 28,375 8,576 36,951
Lease 1,676 5,622 7,298
Personal loans 11,364 11,364
Mortgage loans 63,759 63,759
Other loans 637,811 407,448 1,045,259
Guarantee granted 1,024,652 1,024,652
Total Assets 610 1,371,691 127,126 1,692,167 3,191,594
LIABILITIES
Deposits 8 1,273,344 118,758 26,243 37,805 384,391 12,851,581 14,692,130
Other financial liabilities 148 23,531 23,679
Other non-financial liabilities 8,462 8,462
Total Liabilities 8 1,273,344 118,758 26,243 37,805 384,539 12,883,574 14,724,271
(1) These transactions are eliminated during the consolidation process.
--- ---
(2) Includes close family members of the key management personnel.
(3) The maximum financing amount for loans and other financing as of September 30, 2020 for Macro<br>Securities SA, Key management personnel and other related parties amounted to 641,021, 1,051,332 and 4,432,677, respectively.
Information as of December 31, 2019
--- --- --- --- --- --- --- --- ---
Main subsidiaries (1)
Macro Bank<br><br>Limited Macro<br><br>Securities<br><br>SA Macro<br><br>Fondos<br><br>SGFCISA Argenpay<br><br>SAU Associates Key<br><br>management<br><br>personnel (2) Other related<br><br>parties Total
ASSETS
Cash and deposit in banks 587 587
Other financial assets 144,066 144,066
Loans and other financing (3)
Documents 673,118 673,118
Overdraft 813,725 1,300,140 2,113,865
Credit Cards 47,384 28,817 76,201
Lease 4,138 8,377 12,515
Mortgage loans 72,135 72,135
Other loans 409,209 409,209
Guarantee granted 698,834 698,834
Total Assets 587 148,204 933,244 3,118,495 4,200,530
LIABILIITES
Deposits 13 1,101,409 102,745 1,458 28,026 15,975,613 1,614,574 18,823,838
Other financial liabilities 111 6,843 6,954
Total Liabilities 13 1,101,409 102,745 1,458 28,026 15,975,724 1,621,417 18,830,792
(1) These transactions are eliminated during the consolidation process.
--- ---
(2) Includes close family members of the key management personnel.
(3) The maximum financing amount for loans and other financing as of December 31, 2019 for Macro<br>Securities SA, Key management personnel and other related parties amounted to 6,344, 1,006,870 and 4,400,907, respectively. 
- 33 -

NOTES TO THE CONDENSED CONSOLIDATEDINTERIM FINANCIAL STATEMENTS

AS OF SEPTEMBER 30, 2020

(Translation of Financial statements originally issued in Spanish – See Note 41)

(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of September 30, 2020, unless otherwise expressly stated)

Amounts related to transactions generated during the nine-month periods ended September 30, 2020 and 2019 with related parties are as follows:

As of September 30, 2020
Main subsidiaries (1)
Macro Bank<br><br>Limited Macro<br><br>Securities<br><br>SA Macro<br><br>Fondos<br><br>SGFCISA Argenpay<br><br>SAU Associates Key<br><br>management<br><br>personnel (2) Other related<br><br>parties Total
INCOME / (LOSS)
Interest income 2,299 46,233 461,795 510,327
Interest expense (5,166 ) (1,414,896 ) (36,384 ) (1,456,446 )
Commissions income 6,467 204 55 38 26,190 32,954
Commissions expense (122 ) (211 ) (333 )
Net income from measurement of financial instruments at fair value through profit or loss 3,731 3,731
Other operating income 3 1 17 21
Allowance for loan losses (8,014 ) (8,014 )
Administrative expense (108,377 ) (108,377 )
Other operating expense (58,784 ) (58,784 )
Income / (loss) 3 752 204 1 (5,111 ) (1,368,747 ) 287,977 (1,084,921 )
(1) These transactions are eliminated during the consolidation process.
--- ---
(2) Includes close family members of the key management personnel.
As of September 30, 2019
--- --- --- --- --- --- --- --- --- --- --- --- ---
Main subsidiaries (1)
Macro Bank<br><br>Limited Macro<br><br>Securities<br><br>SA Macro<br><br>Fondos<br><br>SGFCISA Argenpay<br><br>SAU Associates Key<br><br>management<br><br>personnel (2) Other related<br><br>parties Total
INCOME / (LOSS)
Interest income 6,797 4,656 188,623 200,076
Interest expense (2,130 ) (1,059,589 ) (297,910 ) (1,359,629 )
Commissions income 495 174 205 60 5,039 5,973
Net income from measurement of financial instruments at fair value through profit or loss (22,452 ) (34,485 ) (56,937 )
Other operating income 4 32 36
Administrative expense (27,166 ) (27,166 )
Other operating expense (81,197 ) (81,197 )
Income / (loss) 4 7,292 174 (1,925 ) (1,077,325 ) (247,064 ) (1,318,844 )
(1) These transactions are eliminated during the consolidation process.
--- ---
(2) Includes close family members of the key management personnel. 
- 34 -

NOTES TO THE CONDENSED CONSOLIDATEDINTERIM FINANCIAL STATEMENTS

AS OF SEPTEMBER 30, 2020

(Translation of Financial statements originally issued in Spanish – See Note 41)

(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of September 30, 2020, unless otherwise expressly stated)

Transactions generated by the Bank with its related parties to it 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 September 30, 2020 and 2019, totaled 208,739 and 232,849, respectively.

In addition, fees received by the Directors as of September 30, 2020 and 2019 amounted to 1,287,714 and 1,361,339, respectively.

Additionally, the composition of the Board of Directors and key management personnel is as follows:

09/30/2020 12/31/2019
Board of Directors 22 24
Senior managers of the key management personnel 10 10
32 34
10. MODIFICATIONS OF FINANCIAL ASSETS
--- ---

As explained in note 38, on August 28, 2019, the Federal Executive Power, through the Emergency Decree No. 596/2019 (DNU, for its acronym in Spanish) set, for certain short-term government securities, an immediate and stepped extension of their maturities, with no effects on the denomination currency, principal and the agreed-upon interest rate. This DNU, established the following schedule related to how these obligations will be canceled: (i) 15% upon maturity according to the original terms and conditions of its issuance, (ii) 90 calendar days after the payments described in (i), 25% of the amount owed will be cancelled, plus accrued interest over the carrying amount (net of the payments made according to section (i)); and (iii) the remaining amount owed will be cancelled 180 calendar days as from the first payment described in (i). For LECAPS with maturity date from January 1, 2020, the remaining amount owed, after the payments described in section (i), will be fully cancelled at 90 calendar days after such payments.

As the Bank had in its portfolio under amortized cost business model, government securities which contractual cash flows were modified as explained above, the Bank recalculated, at the modification date, the gross carrying amount of those financial assets as the present value of the modified contractual cash flows discounted at the original effective rate.

At the modification date, the gross carrying amount of the modified financial assets amounted to 11,647,844. As a consequence, the new gross carrying amount amounted to 8,142,757 and generated a modification loss for 3,505,087 included in “Other operating expenses”.

11. 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, 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 Ps.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 Medios de Pago SA 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.

Income generated in this sale was recorded in the item “other operating income”. The amounts receivable, in pesos and US dollars, are recorded in the item “Other financial assets”.

The remaining holding of the Bank in Prisma Medios de Pago SA (equivalent to 49%), is recorded in “Equity instruments at fair value through profit or loss” determined from valuations performed by independent experts, which was adjusted in less, as required by a Memorandum dated April 29, 2019, issued by the BCRA.

- 35 -

NOTES TO THE CONDENSED CONSOLIDATEDINTERIM FINANCIAL STATEMENTS

AS OF SEPTEMBER 30, 2020

(Translation of Financial statements originally issued in Spanish – See Note 41)

(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of September 30, 2020, unless otherwise expressly stated)

In addition, sellers retained the usufruct (dividends) of the shares sold to be reported by Prisma for the year ended December 31, 2018, which were collected on April 26, 2019, and have the possibility to execute a put for the non-sold shares of this transaction (49%) and the buyer has the obligation to buy them, on an specific term established on the agreement, according to specifics clauses. 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.

12. 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 during the period or fiscal year, as applicable, ended on September 30, 2020 and December 31, 2019.

The expected terms to settle these obligations are as follows:

09/30/2020
Within 12 months Beyond 12<br> <br>months 09/30/2020 12/31/2019
For administrative, disciplinary and criminal penalties 718 718 878
Letters of credits, guarantees and other Commitments (1) 18,786 18,786 21,122
Commercial claims in progress (2) 653,629 209,646 863,275 1,026,561
Labor lawsuits 24,290 158,761 183,051 216,860
Pension funds - reimbursement 52,292 36,387 88,679 195,480
Other 428,498 42,537 471,035 341,045
1,178,213 447,331 1,625,544 1,801,946
(1) These amounts correspond to the ECL calculated for contingent transactions mentioned in note 4.
--- ---
(2) See also note 34.2.

In the opinion of the Management of the Bank and its legal counsel, there are no other significant effects 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.

13. OTHER FINANCIAL AND NON-FINANCIAL LIABILITIES

The breakdown of other financial and non-financial liabilities as of September 30, 2020 and December 31, 2019 is as follows:

Other financial liabilities 09/30/2020 12/31/2019
Credit and debit card settlement - due to merchants 12,042,562 16,484,252
Amounts payable for spot purchases of foreign currency pending settlement 7,697,383 28,285
Payment orders pending settlement foreign exchange 2,602,567 2,505,846
Amounts payable for other spot purchases pending settlement 2,035,021 3,123,353
Collections and other transactions on account and behalf others 1,183,802 1,923,442
Finance leases liabilities 1,050,446 1,121,326
Amounts payable for spot purchases of government securities pending settlement 83,471 16,718
Other 1,940,110 1,907,743
28,635,362 27,110,965 
- 36 -

NOTES TO THE CONDENSED CONSOLIDATEDINTERIM FINANCIAL STATEMENTS

AS OF SEPTEMBER 30, 2020

(Translation of Financial statements originally issued in Spanish – See Note 41)

(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of September 30, 2020, unless otherwise expressly stated)

Other non-financial liabilities 09/30/2020 12/31/2019
Dividends to be paid (see note 35) 12,788,268
Salaries and payroll taxes payables 4,881,615 4,486,067
Withholdings 2,814,321 2,820,080
Taxes payables 1,714,358 2,317,724
Miscellaneous payables 938,035 1,171,792
Retirement pension payment orders pending settlement 275,525 406,053
Fees payables 162,377 599,416
Other 521,959 573,677
24,096,458 12,374,809
14. 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 September 30, 2020 and December 31, 2019:

09/30/2020 Without due<br><br>date Total up to 12<br><br>months Total over 12<br><br>months
Assets
Cash and deposits in banks 112,933,534
Debt securities at fair value through profit or loss 2,203 14,630,643 1,913,727
Derivative instruments 13,685
Repo transactions 53,970,838
Other financial assets 3,651,790 10,529,363 1,387,069
Loans and other financing (1) 655,818 164,722,942 72,299,564
Other debt securities 228,349,774 11,897,998
Financial assets delivered as guarantee 12,228,348
Investment in equity instruments at fair value through profit or loss 1,626,591
Total Assets 131,098,284 472,217,245 87,498,358
Liabilities
Deposits 217,557,074 275,119,517 32,947
Derivative instruments 381
Other financial liabilities 28,610,726 24,636
Financing received from the BCRA and other financial institutions 628,940 58,978
Issued corporate bonds 2,640,917 2,377,696
Subordinated corporate bonds 1,059,966 30,470,000
Total Liabilities 217,557,074 308,060,447 32,964,257
12/31/2019 Without due<br><br>date Total up to 12<br><br>months Total over 12<br><br>months
--- --- --- --- --- --- ---
Assets
Cash and deposits in banks 123,120,508
Debt securities at fair value through profit or loss 1,561,661 5,378,243
Derivative instruments 61,982
Repo transactions 1,330,400
Other financial assets 3,402,429 2,669,234 1,466,099
Loans and other financing (1) 3,573,785 177,302,065 89,257,590
Other debt securities 77,757,679 1,189,898
Financial assets delivered as guarantee 11,735,148 1,317,151
Investment in equity instruments at fair value through profit or loss 1,878,634
Total Assets 143,710,504 262,000,172 97,291,830 
- 37 -

NOTES TO THE CONDENSED CONSOLIDATEDINTERIM FINANCIAL STATEMENTS

AS OF SEPTEMBER 30, 2020

(Translation of Financial statements originally issued in Spanish – See Note 41)

(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of September 30, 2020, unless otherwise expressly stated)

12/31/2019 Without due<br><br>date Total up to 12<br><br>months Total over 12<br><br>months
Liabilities
Deposits 174,561,529 146,830,273 63,260
Derivative instruments 940,073
Repo transactions 1,225,960
Other financial liabilities 26,205,470 905,495
Financing received from the BCRA and other financial institutions 2,518,866 227,503
Issued corporate bonds 305,868 6,450,639
Subordinated corporate bonds 432,490 29,297,967
Total Liabilities 174,561,529 178,459,000 36,944,864
(1) The amounts included in “without due date”, are related to the non-performing portfolio.
--- ---
15. 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 period 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.

16. INCOME TAX
a) Inflation adjustment on income tax
--- ---

Tax Reform Law 27430, amended by Laws 27468 and 27541, established the following, regarding to inflation adjustment on income tax for the fiscal years beginning on January 1, 2018.

i) Such adjustment will be applicable in the fiscal year in which the variation of the IPC will be<br>higher than 100% for the thirty-six months before the end of the tax period.
ii) Regarding to the first, second and third fiscal year after its effective date, this procedure will<br>be applicable if the variation of the abovementioned index, calculated from the beginning until the end of each of those fiscal<br>years exceeds 55%, 30% and 15% for the first, second and third fiscal year of application, respectively.
iii) The positive or negative inflation adjustment, as the case may be, corresponding to the first,<br>second and third fiscal years beginning on January 1, 2018, shall be allocated one third in the fiscal year for which the<br>adjustment is calculated and the remaining two thirds in equal parts in the following two immediate fiscal years.
iv) The positive or negative inflation adjustment, corresponding to the first and second fiscal years<br>beginning on January 1, 2019, shall be allocated one sixth to the fiscal year in which the adjustment is determined and the<br>remaining five sixth in the following immediate fiscal years.
v) For fiscal years beginning on January 1, 2021, 100% of the adjustment may be deducted in the<br>year in which it will be determined.

As of September 30, 2020 and December 31, 2019, 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 d) of this note).

b) Income tax rate

The Law No. 27541 (see note 38) suspends, up to fiscal years beginning on January 1, 2019 included, the income tax rate reduction that had established the Law 27430, setting up for the suspended period a rate of 30%. For fiscal years beginning on January 1, 2022, the income rate will be 25%.

- 38 -

NOTES TO THE CONDENSED CONSOLIDATEDINTERIM FINANCIAL STATEMENTS

AS OF SEPTEMBER 30, 2020

(Translation of Financial statements originally issued in Spanish – See Note 41)

(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of September 30, 2020, unless otherwise expressly stated)

c) The main items of income tax expense in the condensed consolidated interim financial statements are as follows:
09/30/2020 09/30/2019
--- --- --- --- --- --- --- --- ---
Quarter ended<br><br>09/30/2020 Accumulated<br><br>from<br><br>beginning of<br><br>year up to<br><br>09/30/2020 Quarter<br><br>ended<br><br>09/30/2019 Accumulated from<br> <br>beginning of<br><br>year up to<br><br>09/30/2019
Current loss tax expense 4,217,272 7,422,670 1,678,155 10,489,906
(Gain) / Loss for deferred income tax (1,560,007 )(*) 2,069,098 (*) (3,865,117 ) (2,522,158 )
Monetary effects 506,821 949,987 1,140,337 2,246,188
Income tax expense / (gain) recorded in the statement of income 3,164,086 10,441,755 (1,046,625 ) 10,213,936
Income tax loss recorded in other comprehensive income 47,129 123,073 135,574 118,105
3,211,215 10,564,828 (911,051 ) 10,332,041

(*) Includes gain effects for the deferred income tax as explained point a) of this note.

d) As decided by the Board of Directors in the meeting dated May 11, 2020, considering certain<br>case-law on the subject assessed by its legal and tax advisors, on May 26, 2020, the Bank filed with the Administración<br>Federal de Ingresos Públicos (AFIP, for its acronym in Spanish) its annual income tax return considering the total effect<br>of the inflation adjustment on income tax (see section a) iv) of this note). As a result, the current income tax determined by<br>Banco Macro SA for fiscal year 2019 amounted to 7,002,124 (not restated).

In addition, on October 24, 2019 Banco Macro SA filed to AFIP-DGI two requests for the recovery of payments established by the first paragraph of section 81 Law 11683, in order to obtain the return of the amounts of 4,782,766 and 5,015,451 (not restated), inappropriately paid to the tax authority as income tax for the fiscal years 2013 to 2017 and 2018, respectively, due to the impossibility to apply the update mechanism and the inflation adjustment established by the Income Tax Law (before the amendments include by Laws 27430 and 27468, for the fiscal years 2013 to 2017, and as per 2019 and amendments, for the fiscal year 2018), plus the related compensatory interest (files SIGEA Nº 19144-14224/2019 and 19144-14222/2019). As the regulatory authority has not resolved the abovementioned claims, on August 7, 2020 the Bank filed, under the terms of the second paragraph of section 81 Law 11683, the requests for the recovery of payment to the Federal Civil and Commercial Court of Appeal which are in process at Court Nº 8 and 2, respectively (Files 11285/2020 and 11296/2020).

- 39 -

NOTESTO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF SEPTEMBER30, 2020

(Translation of Financial statements originally issued in Spanish – See Note 41)

(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of September 30, 2020, unless otherwise expressly stated)

17. COMMISSIONS INCOME
09/30/2020 09/30/2019
--- --- --- --- --- --- --- --- ---
Description Quarter ended<br><br> 09/30/2020 Accumulated<br><br> from<br><br> beginning of<br><br> year up to<br><br> 09/30/2020 Quarter ended<br><br> 09/30/2019 Accumulated<br><br> from <br>beginning of<br><br> year up to<br><br> 09/30/2019
Performance obligations satisfied at a point in time
Commissions related to obligations 3,016,408 8,849,254 3,368,818 10,389,691
Commissions related to credit cards 1,938,703 5,624,639 1,870,390 5,403,259
Commissions related to insurance 359,740 1,070,273 331,356 1,094,296
Commissions related to securities value 150,503 355,673 72,748 255,459
Commissions related to trading and foreign exchange transactions 147,596 346,696 151,225 423,443
Commissions related to loans and other financing 31,131 135,895 65,184 160,010
Commissions related to financial guarantees granted 104 454 446 4,704
Performance obligations satisfied over certain time period
Commissions related to credit cards 78,729 242,148 65,311 211,166
Commissions related to trading and foreign exchange transactions 14,704 31,822 14,867 23,006
Commissions related to loans and other financing 187 589 3,046 12,997
Commissions related to obligations 25 770 593 2,938
Commissions related to financial guarantees granted 2,649 2,651
5,737,830 16,658,213 5,946,633 17,983,620
18. DIFFERENCE IN QUOTED PRICES OF GOLD AND FOREIGN CURRENCY
--- ---
09/30/2020 09/30/2019
--- --- --- --- --- --- --- --- --- ---
Description Quarter ended<br><br> 09/30/2020 Accumulated<br><br> from<br><br> beginning of<br><br> year up to<br><br> 09/30/2020 Quarter ended<br><br> 09/30/2019 Accumulated<br><br> from<br><br> beginning of<br><br> year up to<br><br> 09/30/2019
Translation of foreign currency assets and liabilities into pesos 750,159 1,981,956 481,359 (536,630 )
Income from foreign currency exchange 456,782 674,674 1,656,466 3,143,954
**** **** 1,206,941 **** 2,656,630 **** 2,137,825 **** 2,607,324 **** 
- 40 -

NOTESTO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF SEPTEMBER30, 2020

(Translation of Financial statements originally issued in Spanish – See Note 41)

(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of September 30, 2020, unless otherwise expressly stated)

19. OTHER OPERATING INCOME
09/30/2020 09/30/2019
--- --- --- --- --- --- --- --- --- --- ---
Description Quarter ended<br><br> 09/30/2020 Accumulated<br><br> from<br><br> beginning of<br><br> year up to<br><br> 09/30/2020 Quarter ended<br><br> 09/30/2019 Accumulated<br><br> from <br>beginning of<br><br> year up to<br><br> 09/30/2019
Services 687,163 2,052,496 685,109 1,861,718
Other receivables for financial intermediation 185,076 219,025
Adjustments and interest from other receivables 155,824 489,915 194,363 600,779
Adjustments from other receivables with CER clauses 31,574 110,727 39,558 128,990
Sale of property, plant and equipment 5,085 5,572
Derecognition or substantial modification of financial liabilities 2,878 206,333 364,093 469,217
Initial recognition of loans (11,919 ) 7,356 (11,381 ) 102,225
Sale of non-current assets held for sale (1) (60,735 ) 4,033,572
Other 125,846 482,144 299,274 1,049,874
1,181,527 3,573,568 1,510,281 8,246,375
(1) Mainly related to the sale of Prisma Medios de Pago SA, which was classified as non-current assets held for sale when it was<br>sold. See also note 11.
--- ---
20. EMPLOYEE BENEFITS
--- ---
09/30/2020 09/30/2019
--- --- --- --- --- --- --- --- ---
Description Quarter ended<br><br> 09/30/2020 Accumulated<br><br> from<br><br> beginning of<br><br> year up to<br><br> 09/30/2020 Quarter ended<br><br> 09/30/2019 Accumulated<br><br> from <br>beginning of<br><br> year up to<br><br> 09/30/2019
Remunerations 4,616,338 13,234,219 4,536,500 13,326,724
Payroll taxes 1,024,425 2,941,001 960,649 4,218,531
Compensations and bonuses to employees 411,601 1,195,940 690,491 1,612,936
Employee services 146,670 362,402 162,227 430,889
6,199,034 17,733,562 6,349,867 19,589,080
21. ADMINISTRATIVE EXPENSES
--- ---
09/30/2020 09/30/2019
--- --- --- --- --- --- --- --- ---
Description Quarter ended<br><br> 09/30/2020 Accumulated<br><br> from<br><br> beginning of<br><br> year up to<br><br> 09/30/2020 Quarter ended<br><br> 09/30/2019 Accumulated<br><br> from <br>beginning of<br><br> year up to<br><br> 09/30/2019
Maintenance, conservation and repair expenses 507,646 1,461,139 480,068 1,471,844
Armored truck, documentation and events 482,338 1,359,082 669,350 1,498,854
Taxes 404,987 1,233,084 464,408 1,404,444 
- 41 -

NOTESTO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF SEPTEMBER30, 2020

(Translation of Financial statements originally issued in Spanish – See Note 41)

(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of September 30, 2020, unless otherwise expressly stated)

09/30/2020 09/30/2019
Description (contd.) Quarter ended<br><br> 09/30/2020 Accumulated<br><br> from<br><br> beginning of<br><br> year up to<br><br> 09/30/2020 Quarter ended<br><br> 09/30/2019 Accumulated<br><br> from <br>beginning of<br><br> year up to<br><br> 09/30/2019
Electricity and communications 340,970 1,046,129 347,568 1,083,755
Security services 309,627 965,584 363,415 1,084,003
Fees to directors and syndics 263,928 915,821 789,574 1,815,573
Software 242,724 716,571 245,394 759,278
Other fees 205,313 606,983 313,149 915,151
Advertising and publicity 75,065 229,336 148,717 382,754
Insurance 42,788 112,288 38,762 111,143
Representation, travel and transportation expenses 24,329 85,659 62,174 182,929
Stationery and office supplies 21,304 63,196 38,333 99,631
Leases 9,697 65,106 54,849 222,968
Hired administrative services 1,658 2,913 2,757 4,838
Other 467,331 697,215 134,589 427,189
3,399,705 9,560,106 4,153,107 11,464,354
22. OTHER OPERATING EXPENSES
--- ---
09/30/2020 09/30/2019
--- --- --- --- --- --- --- --- ---
Description Quarter ended<br><br> 09/30/2020 Accumulated<br><br> from<br><br> beginning of<br><br> year up to<br><br> 09/30/2020 Quarter ended<br><br> 09/30/2019 Accumulated<br><br> from <br>beginning of<br><br> year up to<br><br> 09/30/2019
Turnover tax 2,493,047 7,772,340 3,034,291 9,187,052
For credit cards 1,118,556 3,084,985 1,218,338 3,407,927
Charges for other provisions 261,948 813,414 659,216 1,361,607
Deposit guarantee fund contributions 184,269 475,776 194,058 563,299
Taxes 121,266 395,524 204,984 1,333,424
Interest on lease liabilities 39,124 123,778 37,729 99,989
Insurance claims 12,779 46,980 19,187 53,933
Loss from sale or impairment of investments in properties and other non-financial assets 11,467 26,614 6,047 148,157
Cost of onerous contracts 1,215 3,270
Donations 428 147,370 52,399 172,353
Modification of financial assets (note 10) 3,505,087 3,505,087
For administrative, disciplinary and criminal penalties 82
Other 342,849 1,014,981 401,237 1,317,575
4,586,948 13,905,032 9,332,573 21,150,485 
- 42 -

NOTESTO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF SEPTEMBER30, 2020

(Translation of Financial statements originally issued in Spanish – See Note 41)

(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of September 30, 2020, unless otherwise expressly stated)

23. 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 activities of the Bank as well as other activities<br>that cannot qualify as investing or financing activities.
- Investing activities: the acquisition, sale and disposal by other means of long-term assets and<br>other investments not included in cash and cash equivalents.
--- ---
- Financing activities: activities that result in changes in the size and composition of the shareholders’<br>equity and liabilities 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:

09/30/2020 12/31/2019 09/30/2019 12/31/2018
Cash and deposits in banks 112,933,534 123,120,508 131,987,552 140,649,799
Other debt securities 130,545,224 56,755,718 76,574,127 104,735,141
Loans and other financing 380,875 366,225 393,184 355,626
243,859,633 180,242,451 208,954,863 245,740,566
24. CAPITAL STOCK
--- ---

The Bank’s subscribed and paid-in capital as of September 30, 2020, amounted to 639,413. Since December 31, 2017, the Bank’s capital stock has changed as follows:

Capital stock issued<br><br> and paid-in Issued<br><br> outstanding In treasury
As of December 31, 2017 669,663 669,663
Own shares acquired (1) (28,948 ) 28,948
As of December 31, 2018 669,663 640,715 28,948
Own shares acquired (1) (1,317 ) 1,317
Capital stock decrease (2) (30,265 ) (30,265 )
Capital stock increase (3) 15 15
As of September 30, 2020 and December 31, 2019 639,413 639,413
(1) Related to the repurchase of the Bank’s own shares under the programs established by the<br>Bank’s Board of Directors on August 8, 2018, October 17, 2018 and December 20, 2018 with the purpose of reducing<br>share price fluctuations, minimizing possible temporary imbalances between market supply and demand.
--- ---

The Program dated on August 8, 2018, established, that the maximum amount of the investment amounted to 5,000,000 and the maximum numbers of shares to be acquired were equivalent to 5% of the capital stock. At the end of this program the Bank had acquired 21,463,005 common, registered, Class B shares with a face value of Ps. 1 each one entitled with one vote for an amount of 6,958,912 (nominal value:3,113,925).

- 43 -

NOTESTO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF SEPTEMBER30, 2020

(Translation of Financial statements originally issued in Spanish – See Note 41)

(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of September 30, 2020, unless otherwise expressly stated)

The Program dated on October 17, 2018, established the start over of the repurchase of the Bank’s own shares, with the pending use of funds of the abovementioned Program, already expired. At the end of this program, the Bank had acquired 6,774,019 common, registered, Class B shares with a face value of Ps. 1 each one entitled with one vote for an amount of 1,982,001 (nominal value: 995,786).

The Program dated on December 20, 2018, established that the maximum amount of the investment amounted to 900,000 and the maximum numbers of shares to be acquired were equivalent to 1% of the capital stock. At the end of this program the Bank had acquired 2,028,251 common, registered, Class B shares with a face value of Ps. 1 each one entitled with one vote for an amount of 560,966 (nominal value: 298,196) of which, as of December 31, 2018 were settled 711,386 common shares for an amount of 185,023 (nominal value: 98,353), and in January 2019 were settled 1,316,865 common shares for an amount of 375,944 (nominal value: 199,843).

(2) Related to capital stock decrease approved by the Shareholders’ Meeting of Banco Macro SA<br>held on April 30, 2019 for an amount of 30,265, equivalent to 30,265,275 common, registered, Class B shares with a face<br>value of Ps. 1 each one entitled with one vote, equivalent to all the own shares acquired as mentioned in section (1). On August 14,<br>2019 the Bank was notified that the capital stock decrease was registered at the Public Registry of Commerce.
(3) Related to the capital stock increase through the issuance of 15,662 common, registered, Class B<br>shares with a face value of Ps. 1 each one entitled with one vote, approved by Shareholders’ Meeting mentioned in (2), due<br>to the merger effects between Banco Macro SA and Banco del Tucumán SA (see additionally note 2.4). On October 29, 2019<br>the Bank was notified that the capital stock increase was registered at the Public Registry of Commerce.
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25. 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 24 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.

Dividends paid and proposed

Cash dividends paid during the fiscal years 2019 and 2018 to the shareholders of the Bank amount to 6,393,978 (not restated) and 3,348,315 (not restated), respectively, which considering the number of shares outstanding to the date of effective payment that represents 10 and 5 pesos per share (not restated), respectively.

The Shareholders’ Meeting held on April 30, 2020, resolved to distribute cash dividends for 14,293,231 (nominal value: 12,788,268), which considering the number of shares outstanding at the date of such resolution, represented 20 pesos per share (not restated). Additionally, as mentioned in note 35, the BCRA will not approve any earning distribution up to December 31, 2020. As a consequence, the Shareholders’ Meeting held on October 21, 2020, resolved to distribute a supplementary cash dividend which will be calculated by multiplying the dividend of Ps. 20 per share already approved by the Shareholders’ Meeting held on April, 30 2020, by the coefficient obtained after dividing the most recent CPI published by the INDEC and informed by such entity to the date on which the BCRA issues its authorization for the payment, by the CPI for the month of April 2020. The aggregate amount to be distributed for this purpose may not exceed the amount of 3,791,722.

- 44 -

NOTESTO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF SEPTEMBER30, 2020

(Translation of Financial statements originally issued in Spanish – See Note 41)

(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of September 30, 2020, unless otherwise expressly stated)

26. 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 above- mentioned 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 an 8.9440% interest in the capital stock of Sedesa according to the percentages disclosed by BCRA Communiqué “B” 11959 on February 27, 2020.

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 1,500 which must meet the requirements provided for in Presidential Decree 540/1995 and other requirements that the regulatory authority may from time to time determine. On the other hand, the BCRA provided for 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.

27. RESTRICTED ASSETS

As of September 30, 2020 and December 31, 2019, the following Bank’s assets are restricted:

Item 09/30/2020 12/31/2019
Debt securities at fair value through profit or loss and other debt securities
· Discount<br> bonds in pesos regulated by Argentine legislation, maturing 2033 used as security in favor of Sedesa (1). 126,889 117,842
· Federal<br> Government Treasury Bonds in pesos adjusted by CER 1%, maturing 2021 as of September 30, 2020 and Discount bonds in<br> pesos regulated by Argentine legislation, maturing 2033 as of December 31, 2019, securing the sectorial Credit Program<br> of the Province of San Juan. Production investment financing fund. 54,970 184,542
· Federal<br> Government Treasury Bonds in pesos adjusted by CER 1%, maturing 2021 as of September 30, 2020 and Discount bonds in<br> pesos regulated by Argentine legislation, maturing 2033, as of securing the regional economies Competitiveness Program<br> – IDB loan No. 3174/OC-AR. 35,372 143,484
· Discount<br> bonds in pesos regulated by Argentine legislation, maturing 2033 for minimum statutory guarantee account required for Agents<br> to act in the new categories contemplated under Resolution No. 622/2013, as amended, of the CNV 28,526 26,493
·<br> Federal Government Treasury Bonds in pesos adjusted by CER 1%, maturing 2021 for the contribution to the Guarantee Fund II in<br> BYMA according to section 45 Law 26831 and supplementary regulations established by CNV standards (NT 2013, as<br> amended) 2,868
· Federal<br> Government Treasury Bonds in pesos adjusted by CER 1%, maturing 2021 as of September 30, 2020 and Discount bonds in<br> pesos regulated by Argentine legislation, maturing 2033 securing a IDB loan of Province of San Juan<br> No. 2763/OC-AR. 275 4,200
Subtotal debt securities at fair value through profit or loss and other debt securities 248,900 476,561 
- 45 -

NOTESTO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF SEPTEMBER30, 2020

(Translation of Financial statements originally issued in Spanish – See Note 41)

(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of September 30, 2020, unless otherwise expressly stated)

Item (contd.) 09/30/2020 12/31/2019
Other financial assets
· Mutual<br> fund shares for minimum statutory guarantee account required for Agents to act in the new categories contemplated under<br> Resolution No. 622/13, as amended, of the CNV 96,129 82,300
· Sundry<br> debtors – Other 4,386 4,217
· Sundry<br> debtors – attachment within the scope of the claim filed by the DGR against the City of Buenos Aires for differences on<br> turnover tax. 827 1,011
Subtotal Other financial assets 101,342 87,528
Loans and other financing – non-financial private sector and foreign residents
· Interests<br> derived from contributions made as contributing partner (2) 159,149
Subtotal loans and other financing 159,149
Financial assets delivered as a guarantee
· Special<br> guarantee checking accounts opened in the BCRA for transactions related to the electronic clearing houses and similar<br> entities. 10,929,389 9,096,636
· Guarantee<br> deposits related to credit and debit card transactions 1,074,898 986,398
· Other<br> guarantee deposits 224,061 1,652,114
· Forward<br> purchase for repo transactions 1,317,151
Subtotal Financial assets delivered as a guarantee 12,228,348 13,052,299
Other non-financial assets
· Real<br> property related to a call option sold 239,273 392,221
Subtotal Other non-financial assets 239,273 392,221
Total 12,977,012 14,008,609
(1) As replacement for the preferred shares of former Nuevo Banco Bisel SA to secure to Sedesa the<br>price payment and the fulfillment of all the obligations assumed in the purchase and sale agreement dated May 28, 2007, maturing<br>on August 11, 2021.
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(2) As of September 30, 2020 it is related to the risk fund Fintech SGR. In order to keep tax<br>benefits related to these contributions, they must be maintained between two and three years from the date they were made. On November 4<br>and 16, 2020 two contributions to the risk funds were made for 40,000 and 40,841, respectively.
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In addition, on November 9, 2020 the Bank paid 12,638 for a call which gives right to increase up to 24.99% the Bank’s interest in the capital stock of Fintech SGR.

28. 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:

28.1 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 (Red Surcos). 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 and Garbarino) and certificates of participation (Ribeiro and Arfintech).

- 46 -

NOTES TO THE CONDENSED CONSOLIDATEDINTERIM FINANCIAL STATEMENTS

AS OF SEPTEMBER 30, 2020

(Translation of Financial statements originally issued in Spanish – See Note 41)

(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of September 30, 2020, unless otherwise expressly stated)

As of September 30, 2020 and December 31, 2019, debt securities and certificates of participation in financial trusts for investment purposes, total 363,674 and 2,368,711, 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.

28.2 Trusts created using financial assets transferred by the<br> 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 September 30, 2020 and December 31, 2019, considering the latest available accounting information as of the date of these condensed consolidated interim financial statements, the assets managed through Macro Fiducia SA (subsidiary) of this type of trusts amounted to 6,641 and 11,194, respectively.

28.3 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 it 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 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 September 30, 2020 and December 31, 2019, considering the latest available accounting information as of the date of these condensed consolidated interim financial statements, the assets managed by the Bank amounted to 1,134,744 and 1,255,115, respectively.

28.4 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<br> as the payment of amortization installments regarding work or service certificates, and<br> the payment of invoices and fees stipulated in the related agreements.
- Promoting the production development<br> of the private economic sector at a provincial level.
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- Being a party to public work concession<br> agreements granting road exploitation, management, keeping and maintenance.
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- 47 -

NOTES TO THE CONDENSED CONSOLIDATEDINTERIM FINANCIAL STATEMENTS

AS OF SEPTEMBER 30, 2020

(Translation of Financial statements originally issued in Spanish – See Note 41)

(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of September 30, 2020, unless otherwise expressly stated)

As of September 30, 2020 and December 31, 2019, considering the latest available accounting information as of these condensed consolidated interim financial statements, the assets managed by the Bank amounted to 7,804,326 and 7,733,453, respectively.

29. COMPLIANCE WITH CNV REGULATIONS

29.1 Compliance with CNV standards to act in the different agent categories defined by the CNV:

29.1.1 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) – Depositary company comprehensive clearing and settlement agent and trading agent (ALyC and AN – comprehensive, for their acronyms in Spanish), financial trustee agent (FF, for its acronym in Spanish) and Guarantee Entity (in the process of being registered).

Additionally, the Bank’s shareholders’ equity as of September 30, 2020 stated in UVAs amounted to 2,288,487,731 and exceeds minimum amount required by this regulation for the differents categories of agents amounting to 1,420,350 UVAs as of that date, and the minimum statutary guarantee account required of 710,175 UVAs, which the Bank paid-in with government securities as described in note 27 and the cash deposits in BCRA accounts 000285 and 80285 belogning to the Bank.

29.1.2 Operations of Macro Securities 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 under the following categories: clearing and settlement agent, trading agent, comprehensive trading agent and mutual investment funds placement and distribution agent (ALyC , AN – comprehensive and ACyD FCI).

Additionally, the shareholders’ equity of such Company as of September 30, 2020 stated in UVAs amounted to 21,995,146 and exceeds the minimum amount required by this regulation, amounting to 470,350 UVAs and the minimum statutary guarantee account required a minimum of 50% of the minimum amount of Shareholders’ equity, which the Company paid-in with mutual fund shares.

29.1.3 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 September 30, 2020 stated in UVAs amounted to 5,170,744 and exceeds the minimum amount required by this regulation, amounting to 150,000 UVAs plus 20,000 UVAs per each additional mutual fund it manages. The minimum statutary guarantee account required a minimum of 50% of the minimum amount of Shareholders’ equity, which the Company paid-in with mutual fund shares.

29.1.4 Operations of Macro Fiducia SA

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.

- 48 -

NOTES TO THE CONDENSED CONSOLIDATEDINTERIM FINANCIAL STATEMENTS

AS OF SEPTEMBER 30, 2020

(Translation of Financial statements originally issued in Spanish – See Note 41)

(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of September 30, 2020, unless otherwise expressly stated)

Additionally, the shareholders’ equity of such Company as of September 30, 2020 stated in UVAs amounted to 1,179,685 and exceeds the minimum amount required by General resolution No. 795 established in 950,000 UVAs. The minimum statutary guarantee account requires a minimum of 50% of the minimum amount of Shareholders’ equity, which the Company paid-in with mutual fund shares. The CNV through General resolution No. 825, decided that the 50% of the amounts required as of December 31, 2019, and September 30, 2020, shall be credited and the Shareholders’ equity may not be less than 6,000.

29.2 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 two fiscal years ended. In compliance with CNV General Resolution No. 629 requirements, the Bank has placed (i) the Inventory Books for fiscal years ended through December 31, 2016 included, and (ii) certain documentation supporting the economic transactions for fiscal years ended through December 31, 2018, included, 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).

29.3 As depositary of mutual funds

As of September 30, 2020 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 (see note 33):

Fund Number<br> of shares Equity
Pionero Pesos 391,162,361 3,212,387
Pionero Renta Ahorro 126,710,973 2,280,665
Pionero FF 54,137,180 802,111
Pionero Renta 19,171,243 882,310
Pionero Acciones 12,861,365 349,394
Pionero Empresas FCI Abierto Pymes 243,827,129 1,298,235
Pionero Pesos Plus 4,416,312,825 21,770,620
Pionero Renta Ahorro Plus 407,468,600 1,713,022
Pionero Renta Mixta I 25,369,758 105,838
Pionero Renta Estratégico 668,816,030 1,685,338
Pionero Argentina Bicentenario 326,619,265 733,916
Pionero Ahorro Dólares 3,716,256 266,900
Pionero Renta Fija Dólares 3,307,693 189,827
Argenfunds Renta Pesos 394,632,132 2,427,509
Argenfunds Renta Argentina 8,911,464 32,708
Argenfunds Ahorro Pesos 42,940,702 369,484
Argenfunds Abierto Pymes 1,709,659,248 3,285,989
Argenfunds Renta Total 2,101,934,643 59
Argenfunds Renta Flexible 569,462,860 1,728,307
Argenfunds Renta Dinámica 41,562,014 161,498
Argenfunds Renta Mixta 51,661,242,240 30
Argenfunds Renta Global 8,983,257 31,441
Argenfunds Renta Capital 31,901,642 2,486,014
Argenfunds Renta Balanceada 167,765,004 628,813 
- 49 -

NOTES TO THE CONDENSED CONSOLIDATEDINTERIM FINANCIAL STATEMENTS

AS OF SEPTEMBER 30, 2020

(Translation of Financial statements originally issued in Spanish – See Note 41)

(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of September 30, 2020, unless otherwise expressly stated)

Fund<br> (contd.) Number<br> of shares Equity
Argenfunds Liquidez 5,443,088,955 8,215,570
Argenfunds Retorno Absoluto 609,274,480 1,056,659
Argenfunds Renta Crecimiento 30,489,844 2,131,822
Argenfunds Renta Mixta Plus 336,465 20,312
Argenfunds Renta Variable 276,458,840 4,399
Argenfunds Renta Fija 283,539,610 4,195,132
30. ACCOUNTING ITEMS THAT IDENTIFY THE COMPLIANCE WITH MINIMUM CASH REQUIREMENTS
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The items recognized by the Bank to constitute the minimum cash requirement effective for September 2020 are listed below, indicating the amounts as of month-end of the related items:

Description Banco<br> Macro SA
Cash and deposits in banks
Amounts in BCRA<br> accounts 66,366,745
Other debt securities
Central Bank Internal Bills<br> computable for the minimum cash requirements 44,316,152
Government securities computable<br> for the minimum cash requirements 17,123,740
Financial assets delivered as guarantee
Special<br> guarantee accounts with the BCRA 10,929,389
Total 138,736,026
31. PENALTIES APPLIED TO THE FINANCIAL ENTITY AND SUMMARY PROCEEDINGS INITIATED BY THE BCRA
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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.

Next follows a description of the situation of Banco Macro SA as of September 30, 2020:

Summary proceedings filed by the BCRA

Financial summary proceedings: No. 1496 dated 02/24/2016.

Reason: control observations over subsidiaries.

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: pending resolution before the BCRA. On 04/07/2016, we filed the defenses and evidence. On 05/18/2016 we requested on behalf of Mr. Delfín Jorge Ezequiel Carballo the resolution of the motion for lack of standing to be sued. The proceedings were not opened to the production of evidence. As of the date, it is pending resolution.

Penalties imposed by the BCRA

Financial summary proceedings: No. 1401 dated 08/14/2013.

Reason: alleged failure in financing to the non-financial public sector, for temporary overdrafts through checking accounts of the Municipality of Córdoba and Reconquista. Penalty amount: 2,400.

Proceeding filed against: Banco Macro SA and the members of the Board (Jorge Horacio Brito, Jorge Pablo Brito and Marcos Brito).

- 50 -

NOTES TO THE CONDENSED CONSOLIDATEDINTERIM FINANCIAL STATEMENTS

AS OF SEPTEMBER 30, 2020

(Translation of Financial statements originally issued in Spanish – See Note 41)

(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of September 30, 2020, unless otherwise expressly stated)

Status: on 03/02/2015 the BCRA passed Resolution No. 183/15 imposing fines to the Bank. Therefore and against such resolution, a direct appeal was filed to the Federal Civil and Commercial Court of Appeals (CNACAF, for its acronym in Spanish). Courtroom IV of the CNACAF sustained the appeal filed by the Bank and annulled the decision imposing the fines to the Bank. Consequently, the BCRA filed a federal extraordinary appeal, which was dismissed. Finally, BCRA lodged a motion for reconsideration of dismissal of the extraordinary appeal with the Argentine Supreme Court (CSJN, for its acronym in Spanish). On 07/30/2020 the CSJN dismissed the complaint for the extraordinary appeal denied filed by the BCRA. As of the date, the file is finished.

Penalties imposed by the Financial Information Unit (UIF)

File: No. 62/2009 dated 01/16/2009.

Reason: observations on the purchase of foreign currency from April 2006 through August 2007. Penalty amount: 718.

Penalty imposed on: Banco Macro SA and those in charge of anti-money laundering regulation compliance (Juan Pablo Brito Devoto and Luis Carlos Cerolini).

Status: the UIF passed Resolution No. 72/2011 on 06/09/2011, imposing fines to those responsible. After successive remedies filed by the Bank, part of the fines were dismissed in relation to statute-barred periods, and the decision became final on 06/25/2019; therefore, the case file will be submitted to the UIF to readjust fines to the open period. As of the date, is pending that UIF readjust the fines related to transactions performed during the period beginning on 3/5/2007 and since 4/17/2007 to 8/22/2007 according to Courtroom III resolution of CNACAF dated 10/31/2016.

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.

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. Against such resolution, the Bank and the individual responsibles 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. The term to file the federal extraordinary appeal against such resolution is already running. On 08/15/2019, the Bank filed a federal extraordinary appeal which was dismissed through resolution dated 09/26/2019. Against such resolution, on 10/03/2019 the Bank filed an appeal to Argentine Supreme Court, which is pending resolution from CSJN.

Although the above described penalties 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 718 and was recognized according to the BCRA Communiqués “A” 5689 and 5940, as amended and supplemented.

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”.

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. To the date hereof this action is still pending resolution.

- 51 -

NOTES TO THE CONDENSED CONSOLIDATEDINTERIM FINANCIAL STATEMENTS

AS OF SEPTEMBER 30, 2020

(Translation of Financial statements originally issued in Spanish – See Note 41)

(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of September 30, 2020, unless otherwise expressly stated)

File: 2577/2014 (CNV Resolution No. 18863) dated 07/20/2017.

Reason: potential non-compliance with de provisions of section 59, Law 19550, and paragraph 1 of Chapter 6 Section 19 of Article IV of Chapter II of CNV Rules (Revised 2013, as amended) in force at the time of the issues under analysis.

Persons subject to summary proceedings: Banco Macro SA, in its capacity as custody agent of collective investment products of mutual funds, regular directors and regular members of the Statutory Audit Committee (Jorge Horacio Brito, Delfín Jorge Ezequiel Carballo, Jorge Pablo Brito, Marcos Brito, Juan Pablo Brito Devoto, Luis Carlos Cerolini, Federico Pastrana, Carlos Enrique Videla, Alejandro Macfarlane, Guillermo Eduardo Stanley, Constanza Brito, Emmanuel Antonio Alvarez Agis, Alejandro Almarza, Carlos Javier Piazza and Vivian Haydee Stenghele).

Status: On May 22, 2019, the CNV (Argentine Securities Commission) issued Resolution No. 80/2019, whereby a warning penalty was imposed on the persons subject to the summary proceedings (except for Delfín J. E. Carballo and Federico Pastrana, as to whom the lack of capacity to be sued was sustained). On 6/7/2019, the Bank, its directors and statutory auditors filed a direct remedy requesting the abrogation of the penalty. The file was submitted to the CNACAF Courtroom II, which issued the resolution for the commencement of proceedings on 19/09/2019. On 12/23/2019, the Court served the direct appeal upon the CNV. On 03/02/2020 the direct appeal served was notified to the CNV. On 03/16/2020 the term for the CNV to answer the served expired, however, such date was declared non-business day and the following day the extraordinary judicial recess started due to the Covid-19 pandemic. On 08/06/2020, the CNV answered the served of the direct appeal filed by the Bank, its Directors and its Syndics. As of the date, it is pending that the CNV answer the served of the direct appeal filed by Argefunds, its Directors and its Syndics.

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).

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 imposed fines to responsibles. Against such resolution, the Bank, its Board of Directors and its Statutory audits filed a direct appeal on 06/12/2019, requesting a repeal of the penalty imposed. Such appeal is in process at CNACAF. The file was submitted to Courtroom IV of CNACAF that received the proceedings on 06/21/2019. The direct appeal filed was notified to UIF on 12/3/2019 and this Agent has not answered yet, having 30 business days to answer. On 02/19/2020, the UIF answered the mentioned served and after that the file was passed to the Public Attorney. On 07/29/2020, the case file returned from the Public Prosecutor's Office to be analyzed by the court in order to issue a decision.

File: No. 1208/2014 (UIF Resolution No. 13/2016) dated 1/15/2016.

- 52 -

NOTES TO THE CONDENSED CONSOLIDATEDINTERIM FINANCIAL STATEMENTS

AS OF SEPTEMBER 30, 2020

(Translation of Financial statements originally issued in Spanish – See Note 41)

(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of September 30, 2020, unless otherwise expressly stated)

Reason: alleged failure to comply with the 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 BCRA. On 06/15/2018, the responsibles filed their defenses. On 7/2/2018, the UIF sustained the lack of capacity to be sued of Delfín Jorge Ezequiel Carballo, discarding his responsibility in this summary proceeding. The proceedings were opened to the production of evidence and closing of the evidence stage; on September 2018 the defendants lodged their memorial. As of the date, is pending to issue an administrative resolution.

File: No. 379/2015 (UIF Resolution No. 96/2019) dated 09/17/2019

Reason: alleged failure to comply with the 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.

Status: On 10/02/2019, Banco Macro SA and the individual responsables were passed of the initiation of the proceedings. On 10/31/2019, the Bank and the individuals subject to summary proceedings filed their defense. To date, the plea filed in relation to the statute of limitations has not been resolved yet, and no initial notification has been issued yet. 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. Currently, all the administrative terms are suspended due to the social and preventive lockdown declared in the country due to Covid-19 pandemic (DNU 297/2020).

Bank Management and its legal counsel consider no further significant accounting effects could arise from the final outcome of the above mentioned judicial proceedings.

32. CORPORATE BONDS ISSUANCE

The corporate bond liabilities recorded by Banco Macro SA in these condensed consolidated interim financial statements amount to:

Corporate Bonds Original value Residual face value <br><br>as of 09/30/2020 09/30/2020 12/31/2019
Subordinated Resettable – Class A USD 400,000,000 (a.1) USD 400,000,000 31,529,966 29,730,457
Non-subordinated – Class B Ps. 4,620,570,000 (a.2) Ps. 2,889,191,000 2,533,127 3,548,959
Non-subordinated – Class C Ps. 3,207,500,000 (a.3) Ps. 2,413,000,000 2,485,486 3,207,548
Total 36,548,579 36,486,964

a.1) 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, 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).

On November 4, 2016, under the abovementioned Global Program, Banco Macro SA issued Subordinated Resettable Corporate Bonds, class A, at a fixed rate of 6.750% p.a. until reset date, fully amortizable upon maturity (November 4, 2026) for a face value of USD 400,000,000 (four hundred million US dollars), under the terms and conditions set forth in the pricing supplement dated October 21, 2016. Interest is paid semiannually on May 4 and November 4 of every year and the reset date will be November 4, 2021. Since reset date, these Corporate Bonds will accrue a benchmark reset rate plus 546.3 basis points, according to the abovementioned terms and conditions.

In addition, the Bank has the option to fully redeem the issuance as the reset date and under the conditions established in the pricing supplement after that date. The Bank used the funds derived from such issuance to grant loans in accordance with BCRA guidelines.

- 53 -

NOTES TO THE CONDENSED CONSOLIDATEDINTERIM FINANCIAL STATEMENTS

AS OF SEPTEMBER 30, 2020

(Translation of Financial statements originally issued in Spanish – See Note 41)

(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of September 30, 2020, unless otherwise expressly stated)

a.2) On May 8, 2017, under the Global Program mentioned on item a.1), Banco Macro SA issued non-subordinated simple corporate bonds Class B not convertible into shares, at a fixed rate of 17.50%, fully amortizable upon maturity (May 8, 2022) for a face value of pesos 4,620,570,000 equivalent to USD 300,000,000 (three hundred million US dollars), under the terms and conditions set forth in the price supplement dated April 21, 2017. Interest is paid semiannually on November 8 and May 8 of every year, beginning on November 8, 2017.

In addition, the Bank may fully redeem the issuance for tax matters, but not partially. The Bank used the funds derived from such issuance to grant loans in accordance with BCRA guidelines.

On October 17, 2018 and October 16, 2019 the Board of Directors decided to pay off these corporate bonds for a face value of 1,229,518,000 and 501,861,000, respectively, equivalent to the amount of purchases made as those dates.

As of the date of issuance of these condensed consolidated interim financial statements the Bank made purchases of this issuance for a face value of pesos 511,495,000, with a remaining outstanding face value of 2,377,696,000.

a.3) On April 9, 2018, under the Global Program mention on item a.1), Banco Macro SA issued non-subordinated simple corporate bonds Class C, for a face value of pesos 3,207,500,000, at an annual variable rate equivalent to the sum of (i) Badlar private rate applicable for the related accrued period; plus (ii) applicable margin of 3.5% p.a., fully amortizable upon maturity (April 9, 2021). Interest will be paid quarterly for the periods due on July 9, October 9, January 9 and April 9 of every year, beginning on July 9, 2018.

In addition, the Bank may fully redeem the issuance for tax matters, but not partially. The Bank used the funds derived from such issuance to grant loans in accordance with BCRA guidelines.

In addition, on October 16, 2019 and January 29, 2020, the Board of Directors decided to pay off these corporate bonds for a face value of 750,500,000 and 44,000,000, respectively.

As of the date of issuance of these condensed consolidated interim financial statements, the Bank made purchases of this issuance for a face value of pesos 45,000,000, with a remaining outstanding face value of pesos 2,368,000,000.

The Shareholder´s Meeting held on April 27, 2018, resolved to increase the maximum amount of the Global Program for the Issuance of Corporate Bonds for a face value from USD 1,500,000,000 to USD 2,500,000,000 or an equal amount in other currencies, as determinated by the Board of Directors in due time. During the meeting held on April 10, 2019 the Board of Directors decided to use the maximum amount of the Global Program for the Issuance of Corporate Bonds approved on April 27, 2018, i.e., U$S 1,000,000,000 (one billon US dollars) or an equal amount in other currencies or value units, for the issuance of Corporate Bonds under CNV frequent issuers system.

33. OFF BALANCE SHEET TRANSACTIONS

In addition to note 4, the Bank maintains different off balance sheet transactions, pursuant to the BCRA standards. Below are the amounts of the main off Balance sheet transactions as of September 30, 2020 and December 31, 2019:

Item 09/30/2020 12/31/2019
Custody of government and private securities<br> and other assets held by third parties 153,124,658 99,546,796
Preferred and other collaterals received from customers<br> (1) 82,854,246 67,919,926
Outstanding checks not yet paid 6,999,441 9,808,816
Checks already deposited and pending clearance 3,442,691 3,689,510
(1) Related to collaterals used to<br> secure loans transactions and other financing, under the applicable rules in force<br> in this matter.
--- --- 
- 54 -

NOTES TO THE CONDENSED CONSOLIDATEDINTERIM FINANCIAL STATEMENTS

AS OF SEPTEMBER 30, 2020

(Translation of Financial statements originally issued in Spanish – See Note 41)

(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of September 30, 2020, unless otherwise expressly stated)

34. TAX AND OTHER CLAIMS
34.1. Tax 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 challenges against the<br> income tax returns filed by former Banco Bansud SA (for the fiscal years since June 30,<br> 1995, through June 30, 1999, and of the irregular six-month period ended December 31,<br> 1999) and by former Banco Macro SA (for the fiscal years ended since December 31,<br> 1998, through December 31, 2000).

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) Ex-officio turnover tax assessments<br> in progress and/or adjustments 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 above-mentioned proceedings other than those disclosed in these condensed consolidated interim financial statements.

34.2. Other claims

In addition, 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 City of Buenos Aires, 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. It is currently pending with the Argentine Supreme Court.

Moreover, the Bank is also subject to three class actions initiated by consumers’ associations for the same purpose: a) Adecua v, Banco Macro on ordinary proceedings, File No. 20495/2007, pending with Commercial Court No.7 in and for the City of Buenos Aires, Clerk’s Office No. 13; b) Damnificados Financieros Asociación Civil Para Su Defensa et al v, Banco Macro on summary proceedings, File No. 37729/2007, pending with Commercial Court No. 7 in and for the City of Buenos Aires, Clerk’s Office No. 13; c) Unión de Usuarios y Consumidores v. Nuevo Banco Bisel on ordinary proceedings, File No. 44704/2008, pending with Commercial Court No. 27 in and for the City of Buenos Aires, Clerk’s Office No. 13.

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 Buenos Aires City stamp tax withholding agent.

- 55 -

NOTES TO THE CONDENSED CONSOLIDATEDINTERIM FINANCIAL STATEMENTS

AS OF SEPTEMBER 30, 2020

(Translation of Financial statements originally issued in Spanish – See Note 41)

(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of September 30, 2020, unless otherwise expressly stated)

Furthermore, in other case the Bank was challenged for charging credit card users until December 2014 a commission for “purchase limit excess” that consisted of a percentage over the purchase limit excess amount. It was styled “User and Consumer Union et. al v. Banco Macro SA on summary proceedings” [Unión de Usuarios y Consumidores y otro c/ Banco Macro SA s/ Sumarísimo], file No. 31958/2010, pending with Commercial Court No. 1 in and for the City of Buenos Aires, Clerk’s Office No

  1. On 03/15/2019 a court order was passed against the Bank from a trial court that ordered the reimbursement for all the collected amounts plus VAT and interest. Although this court decision was appealed, the Entity understands that there is a low probability that a favorable ruling shall be obtained from the trial court, as the Entity became aware of that the Court of Appeals approved related actions against other two banks, an agreement was reached and filed for court-approval effects on 11/03/2020. On such agreement, the Bank compromised to reimburse to credit card users for the period from August 2007 to December 2014, the amounts collected over the abovementioned concepts plus VAT over such commissions and interest calculated at the average current rate for Documents transactions in force at the Banco de la Nación Argentina. On August 26, 2020, the agreement was approved by the judge. On October 28, 2020, the first stage of the agreement was fulfilled while the second stage will be fulfilled in the next 12 months.

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 consolidated interim financial statements.

35. RESTRICTION ON DIVIDENDS DISTRIBUTION
a) According to BCRA regulations, 20% of Banco Macro SA income for the year, without including Other<br>comprehensive income, plus/less prior-year adjustments and less accumulated losses as for the prior year-end, if any, should be<br>allocated to the legal retained earnings.
--- ---
b) Through BCRA rules related to Earnings distribution of financial entities, the BCRA establishes<br>the general procedure to distribute earnings. According to that procedure, earnings may only be distributed if certain circumstances<br>are met, such as no records of financial assistance from the BCRA due to illiquidity or shortages in payments of minimum capital<br>or minimum cash requirement deficiencies 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 the Bank), among other conditions listed<br>in the abovementioned communiqué that must be met. In addition, as established by BCRA Communiqué “A”<br>6768, the earnings distribution approved by the Shareholders’ Meeting of the Bank could only be formalized once the Superintendence<br>of Financial and Foreign Exchange Institutions assesses the potential effects of the application of IFRS according to Communiqué<br> “A” 6430 (section 5.5 IFRS 9 “Impairment”) and the restatement of financial statements according to Communiqué<br> “A” 6651 in accordance with accounting standards established by Communiqué “A” 6847 and the guidelines<br>to apply the restatement procedures established by Communiqué “A” 6849.
--- ---

In addition, 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 Superintendency of Financial and Exchange Entities of the BCRA or by the independent external auditor and that have not been recognized in the accounting records, (vi) certain franchises granted by the BCRA. Additionally, no profit distributions shall be made out of the profit originated as a result of the first-time application of the IFRS, which was created a special reserve, and its balance as of September 30, 2020 was 6,538,425 (nominal value: 3,475,669).

The maximum amount to be distributed shall not be over the minimum capital excess recalculating, exclusively for these purposes, the position in order to consider the above-mentioned adjustments, among other issues.

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).

- 56 -

NOTES TO THE CONDENSED CONSOLIDATEDINTERIM FINANCIAL STATEMENTS

AS OF SEPTEMBER 30, 2020

(Translation of Financial statements originally issued in Spanish – See Note 41)

(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of September 30, 2020, unless otherwise expressly stated)

In addition, through Communiqué “A” 7035, the BCRA established the suspension of earning distribution of financial entities up to December 31, 2020.

c) Pursuant to CNV General Resolution No. 593, the Shareholders’ Meeting in charge of analyzing<br>the annual financial statements will be required to decide on the application of the Bank’s retained earnings, such as the<br>actual distribution of dividends, the capitalization thereof through the delivery of bonus shares, the creation of earnings reserves<br>additional to the Legal earnings retained or a combination of any of these applications.

In compliance with the abovementioned the General regular Shareholders’ Meeting held on April 30, 2020, approved cash dividends distribution (the Dividend) for 14,293,231 (nominal value: 12,788,268), that represents 20 pesos per action at the General regular Shareholders date, and delegated into the Board of Directors to establish the effective date that the cash dividends will be available to the shareholders, according to their holdings. The abovementioned cash dividends distribution is pending resolution for the BCRA, considering, in addition, what was established by Communiqué “A” 7035 abovementioned.

On October 21, 2020, the Extraordinary Shareholders Meeting was celebrated and it resolved to approve a supplementary cash dividend (the Supplementary Dividend) in order to increase the dividend amount decided by Extraordinary Shareholders’ Meeting held on April 30, 2020. The Supplementary Dividend will be calculated by multiplying the dividend by the coefficient obtained after dividing the most recent CPI published by INDEC and informed by such entity to the date on which BCRA issues its authorization for the payment of the Dividend and the Supplementary Dividend, by the CPI for the month of April 2020. The difference arising between the amounts obtained after the above described calculation and the Dividend shall determine the amount of the Supplementary Dividend. The aggregate amount to be distributed as Supplementary Dividend may not exceed the amount of 3,791,722, which will be derecognized from unappropriated retained earnings for future earnings distributions.

36. CAPITAL MANAGEMENT AND CORPORATE GOVERNANCE TRANSPARENCY POLICY AND RISK MANAGEMENT

As financial institution, Banco Macro SA is governed by the 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 and corporate governance transparency policy related to the Bank, are disclosed in note 41 to the consolidated financial statements as of December 31, 2019, already issued.

Additionally, the table below shows the minimum capital requirements measured on a consolidated basis, effective for the month of September 2020, together with the integration thereof (computable equity) as of the end of such month:

Description 09/30/2020
Minimum capital requirements 35,748,523
Computable equity 152,617,573
Capital surplus 116,869,050

Finally, in relation to risk management, note 41 to consolidated financial statements as of December 31, 2019, already issued, exposes relevant information of this regards. However, an update over credit risk is disclosed as follows, due to the beginning of the application of section 5.5 of IFRS 9 which is mentioned in note 3, with the temporary exclusion of public sector exposures.

Credit risk

An update over credit risk is disclosed as follows, taking into account the beginning effects of application of section 5.5 if IFRS 9, mentioned in note 3.

The credit risk is the existing risk regarding the possibility of the Bank to suffer a loss because one or several customers or counterparties fail to meet their obligations.

- 57 -

NOTES TO THE CONDENSED CONSOLIDATEDINTERIM FINANCIAL STATEMENTS

AS OF SEPTEMBER 30, 2020

(Translation of Financial statements originally issued in Spanish – See Note 41)

(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of September 30, 2020, unless otherwise expressly stated)

Losses for credit risk are generated by the default of the debtor or counterparty of their obligations and its extend is mainly related with two factors:

· The exposure amount at default; and
· The recoveries collected from the payments<br>made by the debtor or from the foreclose on the collateral, reducing severally the loses.
--- ---

The Bank’s Credit Risk Management is in charge of managing the credit risk which consist of identification, evaluation, monitoring, control and mitigation of this risk overall credit stages.

The Credit Risk Management area is in charge of the design and development of the Expected Credit Loss Models. Such area, which reports to Credit Risk Management, also is in charge of the design and calculation of the Rating and Scoring Models to quantify the credit risk as well as models that permit to calculate the Probability of Default (PD), exposure at default (EAD) and loss given default (LGD), and the models to calculate the forward looking impact.

The Administration and Credit Operation Management, through the credit review area, analyze the entire portfolio under individual assessment and classify customers in different credit risk stages. Together with Corporate Risk and Credit Recovery managements (which contribute with their view under risk assessment and recovery management), calculating the ECL for Corporate customers in stage 3.

Definitions and the measurement of ECL are regularly presented to the Risk Management Committee which approves the methodologies, adjustments and validation of the models.

36.1 Credit risk impairment assessment

This note must be read together with note 3 section “New accounting standards over impairment of financial assets not measured at fair value through profit or loss”.

36.1.1 Definition of significant increase in credit risk, impaired and default

The Bank recognizes the impairment of its financial assets according to point 5.5 of IFRS 9 guidelines. To this end, the Bank calculates the ECL for financial instruments over a “three stages” risk model based on the evidence of credit quality changes since the initial recognition, as summarized as follows:

· Stage 1: includes financial instruments<br>which credit risks have not increased significantly since initial recognition.
· Stage 2: includes financial instruments<br>which have shown a significant increase in credit risk, not yet considered credit-impaired, and
--- ---
· Stage 3: includes financial instruments<br>considered impaired.
--- ---

The Bank measures the ECL according to the following definitions:

· For financial instruments include in Stage<br>1, the Bank measures the ECL as the portion of the LTECL that result from possible default events within the next 12 months.
· For financial instruments include in Stage<br>2 and Stage 3, the Bank measures the ECL during the LTECL.
--- ---
· In the calculation of ECL, according to<br>IFRS 9, forward looking information is considered.
--- ---

The following chart resumes impairment requirements under IFRS 9:

- Stage 1: initial recognition
· 12mECL
--- ---
- Stage 2: significant increase in credit risk
--- ---
· Arrears > 30 days
--- ---
· PDs comparison
--- ---
§ LTECL
--- --- 
- 58 -

NOTES TO THE CONDENSED CONSOLIDATEDINTERIM FINANCIAL STATEMENTS

AS OF SEPTEMBER 30, 2020

(Translation of Financial statements originally issued in Spanish – See Note 41)

(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of September 30, 2020, unless otherwise expressly stated)

- Stage 3: default

·  Arrears > 90 days

§ Recoverable value

Staging by PD comparison

The significant increase of credit risk is assessed by comparing PD as from the date of origin and the PD as from the reporting date adjusted by the forward looking view. The Bank considers that there is a significant increase in credit risk when there are more than one level of variation in the customers’ risk category at the reporting date, except for clients considered of low risk (reduce PD) where the variation required is more than two risk categories to recognize a significant increase.

Moreover, through periodic reviews, the Bank monitors the effectiveness of the criteria used in identifying the significant increase in credit risk.

Customers segmentation

The criterion to assess if a financial instrument is impaired will depend on the analysis to which such customer is exposed. Losses are estimated either on a collective or an individual basis.

36.1.1.1 Customers evaluated on a collective basis

To estimate expected credit losses comprehensively, disclosures are grouped on the basis of customer segments showing similar risk characteristics relevant for analyzing their repayment capacity or future recovery flows.

The identified segments are grouped under two broad categories:

i) Low risk: characterized by the on-the-job stability of the customers making up such segment<br>and the contractual security in connection with the recovery of credits.
• Public salary plan: employees of federal, provincial or municipal agencies whose salaries are deposited<br>into Banco Macro accounts. High job stability. The Bank contractually ensures the collection of the financial commitments due and<br>payable upon the crediting of salaries.
--- ---
• Private salary plan: employees of private companies with which the Bank has salary crediting agreements<br>in place. The Bank contractually ensures the collection of the financial commitments due and payable upon the crediting of salaries.
--- ---
• Retirees: beneficiaries of federal, provincial or municipal pensions which are credited into Banco<br>Macro accounts. The fact that they are subject to a lifetime benefit ensures that their revenues are highly stable. In this segment,<br>the Bank ensures that credits are recovered through a third party (ANSES [Argentine social security administration] or the related<br>pension fund), which transfers them directly to the accounts held by each retiree with the Bank.
--- ---
ii) Nonlow risk: each of the segments is characterized by having a large number of cases and<br>atomized debt. The origination and risk management thereof involve the use of mass credit rating tools based on statistical models.
--- ---
• Open market: individuals involved in various types of activities (payroll employees, self-employed<br>workers or small taxpayers) who request financing for consumption or homes. This is a segment where the changes in the economic<br>cycle have a greater impact on its financial capacity.
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- 59 -

NOTES TO THE CONDENSED CONSOLIDATEDINTERIM FINANCIAL STATEMENTS

AS OF SEPTEMBER 30, 2020

(Translation of Financial statements originally issued in Spanish – See Note 41)

(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of September 30, 2020, unless otherwise expressly stated)

• Small and Medium size companies (SMEs) with portfolios similar to consumer portfolios according<br>to the definition by the BCRA: customers engaged in commercial, industrial and/or service activities requesting financial aid involving<br>relatively low amounts, mainly for commercial purposes and possibly for consumer in the case of natural persons.
• Agricultural companies with portfolios similar to consumer portfolios under the BCRA’s definition:<br>customers engaged in activities related to agricultural production or companies providing services aimed at that sector who mainly<br>request limited financial aid to perform their commercial activities or possibly for consumption, in the case of natural persons.<br>Their financial requirements and business cycles are inherent to the productive approach taken.
--- ---
• Microenterprises: customers engaged in commercial activities who request financial aid for working<br>capital or capital goods in low amounts, and also for consumption in the case of natural persons. The segment also includes low-revenue<br>customers requiring low financial aid amounts.
--- ---

Under collective basis assessment, the Bank has determined the following criterions to define the inclusions in different impairment stages:

For low risk customer:

· Stage 1:
o no arrears or less than 5 days,
--- ---
o arrears more than 4 days without significant increase risk for PD comparison.
--- ---
· Stage 2:
--- ---
o arrears more than 30 days,
--- ---
o arrears more than 4 days with significant increase of risk for PD comparison.
--- ---
· Stage 3:
--- ---
o arrears more than 90 days in some financial instruments.
--- ---

For no low risk customer:

· Stage 1:
o no arrears or less than 31 days,
--- ---
o no significant increase risk for PD comparison.
--- ---
· Stage 2:
--- ---
o arrears more than 30 days in some financial instrument,
--- ---
o arrears less than 31 days with significant increase of risk for PD comparison.
--- ---
· Stage 3:
--- ---
o Arrears more than 90 days in some financial instruments.
--- ---

36.1.1.2 Customers evaluated on an individual basis

The aim of the individual basis assessment is the estimation of ECL for customers with significate risk or customers which require a specific treatment, or do not have homogeneous characteristics with other portfolio segments for which statistic information is insufficient to predict future behavior.

This assessment includes the following customers and financial assets:

- 60 -

NOTES TO THE CONDENSED CONSOLIDATEDINTERIM FINANCIAL STATEMENTS

AS OF SEPTEMBER 30, 2020

(Translation of Financial statements originally issued in Spanish – See Note 41)

(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of September 30, 2020, unless otherwise expressly stated)

· Corporate companies.
· Large and medium size companies.
--- ---
· SMEs and Agricultural of commercial segment<br>according to BCRA definition.
--- ---
· Financial institutions.
--- ---
· Public sector.
--- ---
· Government and private securities.
--- ---

On a monthly basis the credit review sector assesses the whole portfolio under individual basis methodology, focus on customers who were, in the previous month, in Stage 2 and Stage 3 and those who being in Stage 1, a significant risk increase is observable. To make such assessment, some objective data were defined to analyze whether there is an increase in credit risk to determine whether it should be reclassified to Stage 2 due to the existence of a significant increase in risk; be reclassified to Stage 3 when a default is produced or projected, or remain in Stage 1. These events mainly comprise:

  • Significant arrears in the main credit lines granted.

  • Legal actions by the Bank to collect the assistance granted.

  • Request for reorganization proceeding or bankruptcy.

  • Forborne loans with principal still outstanding.

The “staging” proposal is complete with the expert opinion from Corporate risk and Credit recovery areas.

This assessment is used as an input for the Management Credit Risk Management to estimate the allowances for customers in Stage 1 or Stage 2.

Therefore, allowances related to customers in Stage 3 are calculated by the Credit review area, based on the Bank’s judging criteria, estimating, on a monthly basis, the expected cash flows to be received for each transaction discounting to their effective interest rate. The allowance is determined as the difference between the carrying amount and the present value of the expected cash flows to be received. For this task, the Credit review area requires to the Recovery Management to estimate the cash flows to be collected and when it will occur, taking into account the level of advance in the collection negotiation as well as cash flows from an eventual sale of the collateral received or other credit enhancement that are an integral part of the contractual terms.

36.1.2 The Bank’s internal rating and PD estimation process

The PD represents the probability that a debtor fail with its financial obligation, either during the next 12 month (Stage 1) or during the remaining life time of the financial asset (Stage 2 and 3).

PD determination is performed by customer, aligning with the Bank’s credit management model.

For the individual basis assessment, the rating model developed by the entity, in order to identify the risks and concentrations associated with the PDs in accordance with the Bank’s commercial strategy, is based on a Behavior Module considering the behavior scores of the commercial portfolio segments and contemplates variables of internal behavior and variables from external suppliers.

To classify the collective assessment per risk levels, the Bank developed a 12 month PD since dual-matrix methodology that combine Market Scores of internal behavior with Bureau generic Scores, getting a higher discrimination level when considering the internal behavior and the financial entities. PDs for the lifetime have also been developed, to each assets grouping defined as homogeneous risk, to calculate the financial asset amount classified in Stage 2.

The proposals for implementing the PD models are submitted to the Risk Management Committee for approval. The methodologies, variables, development population, observation windows and results that support the preparation of the models are documented in special reports, are tested and adjusted, at least, once a year.

- 61 -

NOTES TO THE CONDENSED CONSOLIDATEDINTERIM FINANCIAL STATEMENTS

AS OF SEPTEMBER 30, 2020

(Translation of Financial statements originally issued in Spanish – See Note 41)

(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of September 30, 2020, unless otherwise expressly stated)

36.1.3 Exposure at default (EAD)

EAD is based on the amounts that the Bank expects to be owed at default during the next 12 month (Stage 1) or during the instruments remaining lifetime (Stages 2 and 3).

The EAD model uses the same information sources than PD model. Segmentation is also used in the PD structure.

The Bank developed a calculation method for the products that have a defined flow schedule, and another method for the products that provide the customers with a credit line (revolving products). For revolving products, the Bank calculated a credit risk factor that contemplates the use that this credit line could represent in case of default. Upon building the credit risk factors, the aging of the product and level of use was considered, among other characteristics.

36.1.4 Loss given default (LGD)

LGD is an estimate of the loss arising in the case where a default occurs at a given time. It is based on the difference between the contractual cash flows due and those that the lender would expect to receive (i.e., all cash shortfalls), including from the realization of any collateral.

It is the complement to the unit of the recovery rate; that is, the proportion not collected by the Bank with respect to the EAD. Consequently, the default amount is compared with the current value of the amounts recovered after the date of default.

LGD varies according to counterparty, aging, and type of claim and if there is a collateral to protect the credits.

To the LGD calculation the Bank differentiates by product. The estimates are based on the historical information observed in the Bank, for recoveries over default transactions discounting at effective interest rate of such agreements at the default time.

Once the recovery rates are obtained, this behavior is projected through a triangular method to estimate the periods with less aging. Finally, the weighted average of the loss for each portfolio is determined.

Like PD, LGD is adjusted by macroeconomic models applying a forward looking view.

36.2 Forward looking information used in ECL models

The calculation of impairment for ECL includes and is adjusted by a forward looking view with respect to the portfolio behavior. To that end, the Bank performs researches related to macroeconomics variables which have an impact in both, the PD and LGD and has built models that capture such impact for the commercial portfolio, comparable portfolio and consumer portfolio.

The key economic variables used in each of the economic scenarios for the ECL calculation, are as follows:

§            GDP variation

§            Interest rate (BADLAR published by the BCRA)

§            CPI

As stated in IFRS 9, the impact is calculated considering various scenarios with different variables. To such end, a 36-month estimate on the variables underlying the models is requested from a well-known economic consulting firm. This estimate is prepared for three alternative macroeconomic scenarios, to which a likelihood of occurrence is assigned.

Finally, the Bank calculates the expected credit losses by applying the alternative scenarios which are updated on a quarterly basis based on the financial statements filed each calendar quarter.

- 62 -

NOTES TO THE CONDENSED CONSOLIDATEDINTERIM FINANCIAL STATEMENTS

AS OF SEPTEMBER 30, 2020

(Translation of Financial statements originally issued in Spanish – See Note 41)

(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of September 30, 2020, unless otherwise expressly stated)

Adjustment for expected losses due to COVID-19

The pandemic and its direct consequence, the social and preventive lockdown declared by the Argentine government as from March 20, have a high impact on the Argentine economy and, therefore, on the behavior of financial debtors. Despite the fact that the measures established by the government to counterbalance such effects, it is evident that there was a fall in production and consumption, which in turn affected employment and the economic agents’ financial flows, among other factors. In addition, the extension of the restrictions imposed by the pandemic is still uncertain and the magnitude of these effects cannot be fully estimated.

The Argentine government, the BCRA and other tax and regulatory agencies adopted a series of measures to reduce the impact of the economic stagnation arising from the lockdown. Some of the main ones include: extending tax and social security due dates, offering financial aid to the most vulnerable sectors, deferring payment of all bank debtor’s obligations —whether companies or individuals—, promoting the financing of salary payments (guarantees, negative rates, minimum cash exceptions), mandatory refinancing of past due payables, a more flexible treatment for recognizing the impairment of the banking customer portfolio, and banning dismissals and suspensions, among others. All of them contribute to having the period between the second quarter up to the end of 2020, with minimum impact on bank portfolio delinquency. However, it is expected that the financial statements for following fiscal year will incorporate more fully the results of the impairment in the debtors’ financial capacity.

As the Bank is not oblivious to the circumstances described, an increase in uncollectibility charges and an impairment of its assets subject to an uncertain credit risk are to be expected.

Since statistical models do not appropriately reflect the effects arising from the pandemic on expected credit losses, the Bank decided to make a special adjustment prospectively based on an estimate of the impairment of certain financial assets showing greater vulnerability levels or signs of difficulties related to the payment of obligations.

As to commercial loans, as of September 30, 2020, the Bank estimated an additional credit risk impairment loss for 531,200 in connection with beneficiaries of credit facilities at reduced rates during the social lockdown and who are part of the economy sectors which are expected to experience the pandemic’s most significant adverse effects, both in terms of a drop in revenues and the subsequent recovery term. The same criterion was used in connection with the companies which are part of the sectors that chose to reschedule the due dates of their payables using the general and extraordinary flexible conditions established by the BCRA for paying financial obligations. The estimated charge amounted to 167,410.

As regards loans granted to individuals, the adjustment affected the financing to employees on payroll private company, self-employed workers and microentrepreneurs. These sectors are considered to be the most affected by dismissals, suspensions and loss in salary purchasing power, fall in sales and a reduction in activity levels resulting from compulsory lockdown. In these segments, an impairment in customer risk was estimated in the cases in which they opted to defer the settlement of their payables to the Bank (amounts owed in connection with credit cards and personal loans) by making use of the mandatory extensions and payment facilities provided by the BCRA in connection with outstanding financial payables during the pandemic. The adjustment made in connection with consumer loans amounted to 1,050,878 as of September 30, 2020.

The adjustment made in connection with both the portfolios subject to individual and collective analyses is equivalent to the expected credit losses which should have been recognized had there been a fall in the risk of the selected customers as of March 31, 2020 or August 31, 2020, according to the financial request.

Finally, the Bank adjusted the expected credit losses prospectively by incorporating the impact of the new macroeconomic scenarios in the variables affecting credit risk, as stated at the beginning of this section 36.2.

- 63 -

NOTES TO THE CONDENSED CONSOLIDATEDINTERIM FINANCIAL STATEMENTS

AS OF SEPTEMBER 30, 2020

(Translation of Financial statements originally issued in Spanish – See Note 41)

(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of September 30, 2020, unless otherwise expressly stated)

37. ADDITIONAL INFORMATION

The table below shows the amounts corresponding to the detail of Government and private debt securities as of September 30, 2020 and December 31, 2019.

Description 09/30/2020 12/31/2019
Debt securities at fair value through profit or loss
Government securities 16,468,141 5,881,875
Private securities 75,042 1,058,029
Government securities – Foreign 3,390
Total debt securities at fair value through profit or loss 16,546,573 6,939,904
Other debt securities
At fair value through OCI
Central Bank internal bills 126,434,672 56,169,868
Government securities 88,175,802 575,124
Government securities – Foreign 4,110,552 585,850
Total at fair value through OCI 218,721,026 57,330,842
At amortized cost
Government securities (see notes 10 and 38) 20,489,266 18,298,374
Private securities 1,037,480 3,318,361
Total at amortized cost 21,526,746 21,616,735
Total other debt securities 240,247,772 78,947,577
Equity instruments
At fair value through profit or loss 1,626,591 1,878,634
Total equity instruments 1,626,591 1,878,634
38. CHANGES IN THE ARGENTINE MACROECONOMIC ENVIRONMENT OF THE FINANCIAL AND CAPITAL MARKETS
--- ---

The international and local macroeconomic context generates certain degree of uncertainty regarding its future progress as a result of the financial assets and foreign exchange market volatility, certain political events and the level of economic growth, among other issues, and additionally, for the effects mentioned in note 39.

Specifically, in Argentina, as a step prior to general presidential elections, the open primary elections (PASO, for its acronym in Spanish) were held on August 11, 2019. The results were adverse to the party running the Argentine government, which was confirmed with the results of the general presidential elections held on October 27, 2019, giving rise to a change in federal authorities on December 10, 2019. The market values of Argentine government and private financial instruments plummeted the day after the PASO thus, the country risk and the value of the US dollar also skyrocketed. These situations remain as of the date of issuance of these condensed consolidated interim financial statements.

Among other measures introduced by the PEN after the PASO, DNU No. 596/2019 was issued on August 28, 2019, whereby it established, with certain exceptions, a first reprofiling in the maturities of short-term Government securities (Letes, Lecaps, Lelinks and Lecer) Then, the new PEN issued Presidential Decree No. 49/2019 on December 19, 2019, to extend through August 31, 2020, the amortization of treasury bills (Letes) in US dollars.

On December 23, 2019, “Social Solidarity and Productive Reactivation” Law No. 27541 was published in the Official Bulletin, which established several changes and empowered the PEN to complete the formalities and acts needed to recover and secure the sustainability of the government debt as already mentioned, among other issues.

- 64 -

NOTES TO THE CONDENSED CONSOLIDATEDINTERIM FINANCIAL STATEMENTS

AS OF SEPTEMBER 30, 2020

(Translation of Financial statements originally issued in Spanish – See Note 41)

(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of September 30, 2020, unless otherwise expressly stated)

On January 20, 2020, the PEN voluntarily swapped Lecaps for about 60% of the stock for the new Lebads, and after that, on February 11, 2020, through Presidential Decree No. 141/2020 it was decided, with certain exceptions, to delay up to September 30, 2020, the charge for the principal amortization of Federal Government bonds of dual currency (AF20, as its acronym in Spanish).

On February 12, 2020, Law No. 27544 "Restoration of the sustainability of government debt issued under foreign law” was published in the Official Bulletin which, among other issues, empowers the PEN to perform transactions to manage liabilities or swaps or restructuring of interest expiry and principal amortization of government securities issued under foreign law.

On April 6, 2020, the payment of all public debt issued under Argentine legislation was deferred through Decree No. 346/2020 until December 31, 2020. Subsequently, several swaps and restructuring of other debt instruments under Argentine legislation were made.

Finally, on August 31, 2020, the Argentine Ministry of Economy issued a resolution stating that Argentina and creditor group representatives had reached an agreement over 99.01% of the principal of the Argentina’s debt restructuring proposal under foreign legislation. The restructuring mainly includes a reduction in interest and the establishment of a grace period before payments is resumed. In addition, on August 8, 2020, Law No. 27556 established a voluntary swap of government securities stated in US dollars and issued under Argentine laws for an initial 90-day term was published, extending such term for eligible securities not entered into the initial swap up to July 28, 2021 through the Ministry of Economy Resolution 540/2020.

Related to tax regulation, through the abovementioned Law No. 27541, among other provisions, redressing systems were added, amendments to employer contributions were made and a “tax for an inclusive and supportive Argentina” (PAIS tax, for its acronym in Spanish) was created for five fiscal years at a 30% rate on the acquisition of foreign currency for hoarding purposes, to purchase assets and services in foreign currency and international passenger transportation, among others. Finally, note 16 a) and b) explains the amendments introduced pursuant to Income Tax Law.

Between August 2019 and the date of issuance of these condensed consolidated interim financial statements, the BCRA issued several regulations that, along with Presidential Decree No. 609/2019 of September 1, 2019, introduced certain restrictions with different scopes and specifications for natural and artificial persons, including the acquisition of foreign currency for hoarding purposes, transfers abroad and foreign exchange transactions, among other issues, effective as of the date of issuance of these condensed consolidated interim financial statements according to BCRA Communiqué “A” 6844, as supplemented and amended. Subsequently, in September 2020 was established that for the acquisition of foreign currency for hoarding purposes, besides the 30% of PAIS tax, an additional 35% have to be paid as income tax withholding. Additionally, 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 95% as of the date of issuance of these condensed consolidated interim financial statements.

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 consolidated financial statements.

39. EFFECTS OF THE CORONAVIRUS (COVID-19) OUTBREAK

In early March 2020, the World Health Organization recognized Coronavirus (Covid-19) as a pandemic. This emergency situation over public health was worldwide expanded and several countries have taken different measures to contain the effects. This situation and the measures adopted have materially affected the international economy activity with different impacts on several countries and business lines.

Particularly in the Argentine Republic, on March 19, 2020, through Decree No. 297/2020, the Government established the "social, preventive and compulsory isolation" which, after several extends and amendments, which as of the date of issuance of these condensed consolidated interim financial statements, is still effective in some urban agglomerations and some communes of the Argentinian provinces, while in other cities it was making flexible into “social, preventive and compulsory distancing”.

- 65 -

NOTES TO THE CONDENSED CONSOLIDATEDINTERIM FINANCIAL STATEMENTS

AS OF SEPTEMBER 30, 2020

(Translation of Financial statements originally issued in Spanish – See Note 41)

(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of September 30, 2020, unless otherwise expressly stated)

Along with health protection rules, tax and financial measures were taken to mitigate the impact on the economy associated with the pandemic, including public direct financial assistance measures for part of the population, the establishment of financial and fiscal facilities for both individuals and companies. As regards measures related to the financial institutions, the BCRA established maturities extensions, froze the mortgage loan installments and encouraged banks to lend to companies at reduced rates. In addition, as explained in note 35, the distribution of dividends of the finance institutions was suspended until December 31, 2020.

In addition, in the mandatory quarantine context, the BCRA ruled that financial institutions would not be able to open their branches for public service during that period and should continue to provide services to users remotely. They could also trade with each other and their clients in the exchange market remotely. During quarantine, remote trading of stock exchanges and capital markets authorized by the CNV, by the custodians and capital market agents registered with the CNV was admitted.

In view of the extension of mandatory quarantine, the BCRA then decided that financial institutions would open their branches from Friday, April 3, 2020 for public attention through previous appointments obtained by the Bank's website.

The Bank is developing its activities under the conditions detailed above, giving priority to the compliance of social isolation measures by its employees, with the primary objective of taking care of the public health and well-being of all its stakeholders (employees, suppliers, customers, among others). To this end, it has put in place contingency procedures and has enabled its staff to carry out their tasks remotely. From a commercial point of view, it has emphasized maintaining a close relationship with its customers, trying to respond to their needs at this difficult time, sustaining all virtual channels of care to ensure operability and a good response to requirements, monitoring compliance with their business obligations and monitoring the active portfolio in order to detect possible delays in collection and set new conditions for them.

Considering the size of the abovementioned situation, the Bank's Management estimates that this situation could have an impact on its operations and the financial situation and the profit or loss of the Bank, which are under analysis, and will ultimately depend on the extent and duration of the health emergency and the success of the measures taken and taken in the future.

40. 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 for the period, not disclosed in these condensed consolidated interim financial statements.

41. 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 with accounting principles generally accepted in other countries.

Delfín<br> Jorge Ezequiel Carballo<br><br> <br>Chairperson 
- 66 -

EXHIBIT B

CONSOLIDATEDCLASSIFICATION OF LOANS AND OTHER FINANCING

BY SITUATION AND COLLATERAL RECEIVED

AS OF SEPTEMBER 30, 2020 AND DECEMBER 31, 2019

(Translation of the Financial statements originally issued in Spanish – See Note 41)

(Figures stated in thousands of pesos in terms of purchasing power of pesos as of September 30, 2020, except that indicated otherwise)

09/30/2020 12/31/2019
COMMERCIAL
In normal situation 73,460,682 125,316,100
With senior “A” collateral and counter-collateral 2,947,491 4,108,622
With senior “B” collateral and counter-collateral 10,424,066 13,431,243
Without senior collateral or counter-collateral 60,089,125 107,776,235
Subject to special monitoring 1,393,373 314,800
In observation
With senior “A” collateral and counter-collateral 338
With senior “B” collateral and counter-collateral 138,515
Without senior collateral or counter-collateral 997,429 629
In negotiation or with financing agreements
With senior “B” collateral and counter-collateral 123,192 118,454
Without senior collateral or counter-collateral 133,899 195,717
Troubled 179,789 86,602
With senior “A” collateral and counter-collateral 48,069
With senior “B” collateral and counter-collateral 131,588 12,840
Without senior collateral or counter-collateral 132 73,762
With high risk of insolvency 705,398 1,606,372
With senior “A” collateral and counter-collateral 10,604
With senior “B” collateral and counter-collateral 70,828 377,639
Without senior collateral or counter-collateral 634,570 1,218,129
Irrecoverable 295,132 6,928
With senior “A” collateral and counter-collateral 509
With senior “B” collateral and counter-collateral 255,567
Without senior collateral or counter-collateral 39,565 6,419
Subtotal Commercial 76,034,374 127,330,802

Delfín Jorge Ezequiel Carballo

Chairperson

- 67 -

EXHIBIT B

(Continued)

CONSOLIDATED CLASSIFICATION OF LOANS AND OTHER FINANCING

BYSITUATION AND COLLATERAL RECEIVED

AS OF SEPTEMBER 30, 2020 AND DECEMBER 31, 2019

(Translation of the Financial statements originally issued in Spanish – See Note 41)

(Figures stated in thousands of pesos in terms of purchasing power of pesos as of September 30, 2020, except that indicated otherwise)

09/30/2020 12/31/2019
CONSUMER AND MORTGAGE
Performing 171,653,040 149,689,365
With senior “A” collateral and counter-collateral 17,632,616 2,926,665
With senior “B” collateral and counter-collateral 16,611,588 17,461,291
Without senior collateral or counter-collateral 137,408,836 129,301,409
Low risk 367,639 2,021,185
With senior “A” collateral and counter-collateral 5,163 20,399
With senior “B” collateral and counter-collateral 40,328 222,366
Without senior collateral or counter-collateral 322,148 1,778,420
Low risk - in special treatment 13,466
Without senior collateral or counter-collateral 13,466
Medium risk 350,548 1,709,062
With senior “A” collateral and counter-collateral 5,461 16,304
With senior “B” collateral and counter-collateral 45,738 158,967
Without senior collateral or counter-collateral 299,349 1,533,791
High risk 627,810 1,932,697
With senior “A” collateral and counter-collateral 18,357 32,808
With senior “B” collateral and counter-collateral 92,961 161,972
Without senior collateral or counter-collateral 516,492 1,737,917
Irrecuperable 688,481 528,616
With senior “A” collateral and counter-collateral 8,638 11,412
With senior “B” collateral and counter-collateral 224,424 174,828
Without senior collateral or counter-collateral 455,419 342,376
Subtotal consumer and mortgage 173,700,984 155,880,925
Total 249,735,358 283,211,727
This exhibit discloses the contractual figures as established by the BCRA. The conciliation with the condensed consolidated interim statement of financial position is listed below:
At 09/30/2020 At 12/31/2019
Loans and other financing 237,678,324 270,133,440
+ Allowances for loans and other financing 8,584,989 6,199,709
+ Adjustment IFRS (adjustment amortized cost and fair value) 68,960 139,172
+ Debt securities of financial trust - Measured at amortized cost 242,975 1,345,987
+ Corporate bonds 797,909 1,974,743
-<br>  Interest and other accrued items receivable from financial assets with impaired credit value (97,036 ) (66,493 )
Guarantees provided and contingent liabilities 2,459,237 3,485,169
Total computable items 249,735,358 283,211,727

Delfín Jorge Ezequiel Carballo

Chairperson

- 68 -
EXHIBIT C
CONSOLIDATED CONCENTRATION OF LOANS AND FINANCING FACILITIES
AS OF SEPTEMBER 30, 2020 AND DECEMBER 31, 2019
(Translation of the Financial statements originally issued in Spanish – See Note 41)
(Figures stated in thousands of pesos in terms of purchasing power of pesos as of September 30, 2020, except that indicated otherwise)
09/30/2020 12/31/2019
--- --- --- --- --- --- --- --- ---
Number of customers Cut off balance % of total portfolio Cut off balance % of total portfolio
10 largest customers 30,771,019 12.32 46,438,929 16.40
50 next largest customers 23,725,589 9.50 43,596,698 15.39
100 next largest customers 13,085,736 5.24 19,143,418 6.76
Other customers 182,153,014 72.94 174,032,682 61.45
Total  (1) 249,735,358 100.00 283,211,727 100.00
(1) See reconciliation in Exhibit B
---

Delfín Jorge Ezequiel Carballo

Chairperson

- 69 -
EXHIBIT D
CONSOLIDATED BREAKDOWN OF LOANS AND OTHER FINANCING BY TERM
AS OF SEPTEMBER 30, 2020
(Translation of the Financial statements originally issued in Spanish – See Note 41)
(Figures stated in thousands of pesos in terms of purchasing power of pesos as of September 30, 2020, except that indicated otherwise)
Remaining terms to maturity
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Over<br> 6 Over<br> 12
Over<br> 1 Over<br> 3 months months
month months and<br> up to and<br> up to
Up<br> to 1 and<br> up to and<br> up to 12 24 Over<br> 24
Item Matured month 3 months 6 months months months months Total
Non-financial government<br> sector 278,509 679,945 724,847 1,338,391 1,974,335 1,500,812 6,496,839
Financial sector 199,855 204,056 171,846 1,089,598 1,006,089 1,297 2,672,741
Non-financial private<br> sector and foreign residents 1,942,590 80,265,930 30,211,345 34,680,979 54,777,612 42,301,304 68,805,431 312,985,191
Total 1,942,590 80,744,294 31,095,346 35,577,672 57,205,601 45,281,728 70,307,540 322,154,771
CONSOLIDATED BREAKDOWN OF LOANS AND OTHER FINANCING BY TERM
---
AS OF DECEMBER 31, 2019
(Translation of the Financial statements originally issued in Spanish – See Note 41)
(Figures stated in thousands of pesos in terms of purchasing power of pesos as of September 30, 2020, except that indicated otherwise)
Remaining terms to maturity
--- --- --- --- --- --- --- --- ---
Over 6 Over 12
Over 1 Over 3 months months
month months and up to and up to
Up to 1 and up to and up to 12 24 Over 24
Item Matured month 3 months 6 months months months months Total
Non-financial<br> government sector 3,344,059 791,296 934,667 2,246,660 3,702,545 2,471,287 13,490,514
Financial<br> sector 2,244,407 2,698,446 576,980 772,139 1,092,035 6,686 7,390,693
Non-financial<br> private sector and foreign residents 4,433,914 110,912,713 33,033,744 29,651,325 37,033,305 53,408,328 82,402,251 350,875,580
Total 4,433,914 116,501,179 36,523,486 31,162,972 40,052,104 58,202,908 84,880,224 371,756,787

This exhibit discloses the contractual future cash flows that include interest and charges to be accrued until maturity of the contracts.

Delfín Jorge Ezequiel Carballo

Chairperson

- 70 -
EXHIBIT F
CONSOLIDATED CHANGE OF PROPERTY, PLANT AND EQUIPMENT
AS OF SEPTEMBER 30, 2020
(Translation of the Financial statements originally issued in Spanish – See Note 41)
(Figures stated in thousands of pesos in terms of purchasing power of pesos as of September 30, 2020, except that indicated otherwise)
Depreciation for the period
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Item Original<br> <br><br>value at beginning<br><br> of fiscal <br><br>year Total<br> life estimated <br><br>in years Increases Decreases Accumulated Decrease For<br> the <br><br>period At<br> the <br><br>end Residual<br> <br><br>value at <br><br>the end of <br><br>the period
Cost
Real<br> property 26,787,704 50 392,002 28 1,697,701 27 413,268 2,110,942 25,068,736
Furniture<br> and facilities 3,308,136 10 211,124 703 1,289,122 29 247,983 1,537,076 1,981,481
Machinery<br> and equipment 4,367,071 5 391,248 95 2,321,339 41 585,346 2,906,644 1,851,580
Vehicles 752,716 5 51,158 49,071 614,768 44,941 50,736 620,563 134,240
Other 2,396 28 2,379 19 2,398 26
Work<br> in progress 1,068,218 246,433 485,843 828,808
Right<br> of use real property 1,495,861 5 334,809 105,576 370,397 31,123 350,982 690,256 1,034,838
Total<br> property, plant and equipment (1) 37,782,102 1,626,802 641,316 6,295,706 76,161 1,648,334 7,867,879 30,899,709
CONSOLIDATED CHANGE OF PROPERTY, PLANT AND EQUIPMENT
---
AS OF DECEMBER 31, 2019
(Translation of the Financial statements originally issued in Spanish – See Note 41)
(Figures stated in thousands of pesos in terms of purchasing power of pesos as of September 30, 2020, except that indicated otherwise)
Depreciation for the fiscal year
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Item Original<br> <br><br>value at beginning<br><br> of fiscal <br><br>year Total<br> life estimated <br><br>in years Increases Decreases Accumulated Decrease For<br> the <br><br>fiscal <br><br>year At<br> the <br><br>end Residual<br> <br><br>value at<br><br> the end of<br><br> the fiscal <br><br>year
Cost
Real<br> property (1) 24,810,352 50 2,113,253 135,901 1,324,754 106,339 479,286 1,697,701 25,090,003
Furniture<br> and facilities 3,087,915 10 651,001 430,780 1,439,469 428,725 278,378 1,289,122 2,019,014
Machinery<br> and equipment 6,867,886 5 772,763 3,273,578 4,745,919 3,270,128 845,548 2,321,339 2,045,732
Vehicles 746,373 5 120,352 114,009 598,849 58,824 74,743 614,768 137,948
Other 2,214 182 2,177 202 2,379 17
Work<br> in progress 1,838,008 1,777,994 2,547,784 1,068,218
Right<br> of use real property 1,626,560 130,699 37,353 407,750 370,397 1,125,464
Total<br> property, plant and equipment (1) 37,352,748 7,062,105 6,632,751 8,111,168 3,901,369 2,085,907 6,295,706 31,486,396

(1) During the fiscal year 2020 and 2019, this item observed transfers to and from property, plant and equipment and/or non-current assets held for sale.

Delfín Jorge Ezequiel Carballo

Chairperson

- 71 -
EXHIBIT F
(Continued)
CONSOLIDATED CHANGE IN INVESTMENT PROPERTY
AS OF SEPTEMBER 30, 2020
(Translation of the Financial statements originally issued in Spanish – See Note 41)
(Figures stated in thousands of pesos in terms of purchasing power of pesos as of September 30, 2020, except that indicated otherwise)
Depreciation for the period
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Item Original<br> Value at beginning <br><br>of fiscal <br><br>year Useful<br> life estimated<br><br> in years Increases Decreases Accumulated Decrease For<br> the <br><br>period At<br> the <br><br>end Residual<br><br><br> value at <br><br>the end<br><br> of the<br><br> period
Cost
Rented properties 197,812 50 1 30,266 1,699 31,965 165,848
Other<br> investment properties 753,620 50 63,058 3,651 34,882 4 7,885 42,763 770,264
Total<br> investment property (1) 951,432 63,059 3,651 65,148 4 9,584 74,728 936,112
CONSOLIDATED CHANGE IN INVESTMENT PROPERTY
---
AS OF DECEMBER 31, 2019
(Translation of the Financial statements originally issued in Spanish – See Note 41)
(Figures stated in thousands of pesos in terms of purchasing power of pesos as of September 30, 2020, except that indicated otherwise)
Depreciation for the fiscal year
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Item Original<br> Value at beginning<br><br> of fiscal <br><br>year Useful<br> life estimated <br><br>in years Increases Decreases Accumulated Decrease For<br> the <br><br>fiscal <br><br>year At<br> the<br><br> end Residual<br> <br><br>value at <br><br>the end <br><br>of the <br><br>fiscal <br><br>year
Cost
Rented<br> properties 197,809 50 4 1 28,055 1 2,212 30,266 167,546
Other<br> investment properties 655,215 50 389,786 291,381 25,762 9,120 34,882 718,738
Total<br> investment property (1) 853,024 389,790 291,382 53,817 1 11,332 65,148 886,284

(1) During the fiscal year 2020 and 2019, this item observed transfers to and from property, plant and equipment and/or non-current assets held for sale.

Delfín Jorge Ezequiel Carballo

Chairperson

- 72 -
EXHIBIT G
CONSOLIDATED CHANGE IN INTANGIBLE ASSETS
AS OF SEPTEMBER 30, 2020
(Translation of the Financial statements originally issued in Spanish – See Note 41)
(Figures stated in thousands of pesos in terms of purchasing power of pesos as of September 30, 2020, except that indicated otherwise)
Depreciation for the period
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Item Original<br> Value at beginning<br><br> of fiscal <br><br>year Useful<br> life estimated <br><br>in years Increases Decreases Accumulated Decrease For<br> the<br><br> period At<br> the end Residual<br> <br><br>value at<br><br> the end of<br><br> the period
Cost
Licenses 1,998,401 5 419,940 819,188 1 342,092 1,161,279 1,257,062
Other<br> intangible assets 6,236,205 5 977,305 1,071 3,083,872 1,072 954,846 4,037,646 3,174,793
Total<br> intangible assets (1) 8,234,606 1,397,245 1,071 3,903,060 1,073 1,296,938 5,198,925 4,431,855
CONSOLIDATED CHANGE IN INTANGIBLE ASSETS
---
AS OF DECEMBER 31, 2019
(Translation of the Financial statements originally issued in Spanish – See Note 41)
(Figures stated in thousands of pesos in terms of purchasing power of pesos as of September 30, 2020, except that indicated otherwise)
Depreciation for the fiscal year
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Item Original<br> Value at beginning<br><br> of fiscal <br><br>year Useful<br> life estimated<br><br> in years Increases Decreases Accumulated Decrease For<br> the <br><br>fiscal year At<br> the end Residual<br> <br><br>value at <br><br>the end <br><br>of the <br><br>fiscal <br><br>year
Cost
Licenses 2,432,409 5 625,127 1,059,135 1,499,644 1,052,102 371,646 819,188 1,179,213
Other<br> intangible assets 7,411,750 5 1,453,617 2,629,162 4,355,314 2,479,303 1,207,861 3,083,872 3,152,333
Total<br> intangible assets (1) 9,844,159 2,078,744 3,688,297 5,854,958 3,531,405 1,579,507 3,903,060 4,331,546
(1) During the fiscal year 2020 and 2019, transfers was produced between different lines of this item,<br>that producing differences between amounts at the end of the year and the beginning another, without implying modifications of<br>the total item.
--- ---

Delfín Jorge Ezequiel Carballo

Chairperson

- 73 -

EXHIBIT H

CONSOLIDATED DEPOSIT CONCENTRATION

AS OF SEPTEMBER 30, 2020 AND DECEMBER 31, 2019

(Translation of the Financial statements originally issued in Spanish – See Note 41)

(Figures stated in thousands of pesos in terms of purchasing power of pesos as of September 30, 2020, except that indicated otherwise)

09/30/2020 12/31/2019
Outstanding % of total Outstanding % of total
Number of customers balance portfolio balance portfolio
10 largest customers 121,924,426 24.75 29,996,657 9.33
50 next largest customers 41,261,144 8.37 14,924,834 4.64
100 next largest customers 20,642,410 4.19 11,620,985 3.62
Other customers 308,881,558 62.69 264,912,586 82.41
Total 492,709,538 100.00 321,455,062 100.00

Delfín Jorge Ezequiel Carballo

Chairperson

- 74 -

EXHIBIT I

CONSOLIDATED BREAKDOWN OF FINANCIAL LIABILITIES

FOR RESIDUAL TERMS

AS OF SEPTEMBER 30, 2020

(Translation of the Financial statements originally issued in Spanish – See Note 41)

(Figures stated in thousands of pesos in terms of purchasing power of pesos as of September 30, 2020, except that indicated otherwise)

Remaining terms to maturity
Over 1 Over 3 Over 6 Over 12
month and months and months and months and
Up to up to up to up to up to Over
Item 1 month 3 months 6 months 12 months 24 months 24 months Total
Deposits 436,768,303 43,023,859 6,951,830 11,314,667 51,326 2,419 498,112,404
From the non-financial government sector 95,917,756 9,806,003 1,052,909 1,926 106,778,594
From the financial sector 440,978 440,978
From the non-financial private sector and foreign residents 340,409,569 33,217,856 5,898,921 11,312,741 51,326 2,419 390,892,832
Derivative instruments 3 378 381
Other Financial Liabilities 28,410,675 52,450 16,499 144,147 20,390 7,429 28,651,590
Financing received from the Central Bank of Argentina and other financial institutions 35,393 296,584 213,073 112,766 60,348 9,670 727,834
Issued corporate bonds 197,750 208,048 215,866 2,800,652 2,793,793 6,216,109
Subordinated corporate bonds 1,028,362 1,028,363 2,159,257 40,648,046 44,864,028
Total 465,412,124 44,609,681 7,397,268 15,400,595 5,085,114 40,667,564 578,572,346

This exhibit discloses contractual future cash flows that include interests and accessories to be accrued until maturity of the contracts.

Delfín Jorge Ezequiel Carballo

Chairperson

- 75 -

EXHIBIT I

(Continued)

CONSOLIDATED BREAKDOWN OF FINANCIAL LIABILITIES

FOR RESIDUAL TERMS

AS OF DECEMBER 31, 2019

(Translation of the Financial statements originally issued in Spanish – See Note 41)

(Figures stated in thousands of pesos in terms of purchasing power of pesos as of September 30, 2020, except that indicated otherwise)

Remaining<br> terms to maturity
Over<br> 1 Over<br> 3 Over<br> 6 Over<br> 12
month<br> and months<br> and months<br> and months<br> and
Up to up to up to up to up to Over
Item 1<br> month 3<br> months 6<br> months 12<br> months 24<br> months 24<br> months Total
Deposits 286,658,448 31,936,853 4,247,226 1,256,621 65,467 27,725 324,192,340
From<br> the non-financial government sector 20,636,575 951,662 52,287 2,544 21,643,068
From<br> the financial sector 384,185 384,185
From<br> the non-financial private sector and foreign residents 265,637,688 30,985,191 4,194,939 1,254,077 65,467 27,725 302,165,087
Derivative instruments 358,472 417,185 164,416 940,073
Repo transactions 1,226,083 1,226,083
Other<br> financial institutions 1,226,083 1,226,083
Other Financial Liabilities 25,768,825 119,832 127,236 204,786 397,199 525,530 27,143,408
Financing received<br> from the Central Bank of Argentina and other financial institutions 1,260,919 1,015,080 184,144 120,069 207,472 56,029 2,843,713
Issued corporate bonds 391,667 629,763 904,300 4,113,993 3,778,116 9,817,839
Subordinated corporate<br> bonds 988,806 988,807 1,977,613 40,171,906 44,127,132
Total 315,664,414 33,488,950 6,341,591 3,474,583 6,761,744 44,559,306 410,290,588

This exhibit discloses contractual future cash flows that include interests and accessories to be accrued until maturity of the contracts.

Delfín Jorge Ezequiel Carballo

Chairperson

- 76 -
EXHIBIT J
CONSOLIDATED CHANGES IN PROVISIONS
AS OF SEPTEMBER 30, 2020
(Translation of the Financial statements originally issued in Spanish – See Note 41)
(Figures stated in thousands of pesos in terms of purchasing power of pesos as of September 30, 2020, except that indicated otherwise)
Decreases
--- --- --- --- --- --- --- --- --- --- --- --- --- ---
Item Amounts<br> at<br><br> beginning of<br><br> fiscal year Increases Reversals Charge<br> off Monetary<br> effects<br><br> generated for<br><br> provisions 09/30/2020
Provisions<br> for eventual commitments 21,122 8,550 7,205 (3,681 ) 18,786
For  Administrative,<br> disciplinary and criminal penalties 878 (160 ) 718
Other 1,779,946 812,051 7 635,603 (350,347 ) 1,606,040
Total<br> Provisions 1,801,946 820,601 7 642,808 (354,188 ) 1,625,544
CONSOLIDATED CHANGES IN PROVISIONS
---
AS OF DECEMBER 31, 2019
(Translation of the Financial statements originally issued in Spanish – See Note 41)
(Figures stated in thousands of pesos in terms of purchasing power of pesos as of September 30, 2020, except that indicated otherwise)
Decreases
--- --- --- --- --- --- --- --- --- --- --- --- --- ---
Item Amounts<br> at<br> beginning of <br> fiscal year Increases Reversals Charge off Monetary effects generated for provisions 12/31/2019
Provisions<br> for eventual commitments 20,185 9,864 (8,927 ) 21,122
For<br> Administrative, disciplinary and criminal penalties 1,350 (472 ) 878
Other 1,966,153 1,615,880 1,035,404 32,989 (733,694 ) 1,779,946
Total<br> Provisions 1,987,688 1,625,744 1,035,404 32,989 (743,093 ) 1,801,946

Delfín Jorge Ezequiel Carballo

Chairperson

- 77 -
EXHIBIT L
CONSOLIDATED FOREIGN CURRENCY AMOUNTS
AS OF SEPTEMBER 30, 2020 AND DECEMBER 31, 2019
(Translation of the Financial statements originally issued in Spanish – See Note 41)
(Figures stated in thousands of pesos in terms of purchasing power of pesos as of September 30, 2020, except that indicated otherwise)
09/30/2020 12/31/2019
--- --- --- --- --- --- --- --- --- --- --- --- ---
Total per currency
Total parent
company and
Items local branches US dollar Euro Real Other Total
ASSETS
Cash and deposits in banks 92,350,711 91,859,822 349,120 16,273 125,496 86,770,215
Debt securities at fair value through profit or loss 4,244 4,244 302,355
Other financial assets 4,568,921 4,568,921 4,585,782
Loans and other financing 23,365,581 23,365,581 47,660,594
Other financial institutions 39,045 39,045 743,743
From the non-financial private sector and foreign residents 23,326,536 23,326,536 46,916,851
Other debt securities 4,528,556 4,528,556 1,058,429
Financial assets delivered as guarantee 1,576,372 1,571,010 5,362 3,536,835
Equity Instruments at fair value through profit or loss 8,479 8,479 12,987
TOTAL ASSETS 126,402,864 125,906,613 354,482 16,273 125,496 143,927,197
LIABILITIES
Deposits 78,758,066 78,758,014 52 97,442,188
Non-financial government sector 2,536,305 2,536,305 4,879,694
Financial sector 393,423 393,423 281,170
Non-financial private sector and foreign residents 75,828,338 75,828,286 52 92,281,324
Other financial liabilities 5,688,455 5,570,503 104,684 13,268 6,417,789
Financing from Central Bank and other financial Institutions 540,042 540,042 2,501,572
Subordinated corporate bonds 31,529,966 31,529,966 29,730,457
Other non-financial liabilities 55,681 55,681 30,524
TOTAL LIABILITIES 116,572,210 116,454,206 104,736 13,268 136,122,530

Delfín Jorge Ezequiel Carballo

Chairperson

- 78 -
EXHIBIT Q
CONSOLIDATED  BREAKDOWN  OF STATEMENT OF INCOME
FOR THE THREE AND NINE MONTH PERIODS ENDED SEPTEMBER 30, 2020 AND 2019
(Translation of the Financial statements originally issued in Spanish – See Note 41)
(Figures stated in thousands of pesos in terms of purchasing power of pesos as of September 30, 2020, except that indicated otherwise)
Net financial Income/ (Loss)
--- --- --- --- --- --- --- --- --- --- --- --- ---
Mandatory measurement
Items Quarter ended<br> 09/30/2020 Accumulated from<br> beginning of year<br> up to 09/30/2020 Quarter ended<br> 09/30/2019 Accumulated from<br> beginning of year<br> up to 09/30/2019
For measurement of financial assets at fair value through profit or loss
Gain/ (Loss) from government securities 2,591,569 6,269,513 (534,802 ) (188,730 )
Gain from private securities 273,516 640,188 189,040 680,927
Gain from derivative financial instruments
Forward transactions 1,328 62,659 1,061,783 1,550,517
(Loss) / Gain from other financial assets (3,467 ) 2,690 14,034 157,849
(Loss) / Gain from equity instruments at fair value through profit or loss (106,772 ) 83,324 (14,411 ) 2,310,656
Loss from sales or decreases of financial assets at fair value (*) (10,296,725 ) (21,404,907 ) (17,447,860 ) (44,076,966 )
TOTAL (7,540,551 ) (14,346,533 ) (16,732,216 ) (39,565,747 )

(*) Includes reclassifications of instruments classified at fair value through other comprehensive income that were derecognized or charged during the period.

Delfín Jorge Ezequiel Carballo

Chairperson

- 79 -
EXHIBIT Q
(Continued)
CONSOLIDATED  BREAKDOWN  OF STATEMENT OF INCOME
FOR THE THREE AND NINE MONTH PERIODS ENDED SEPTEMBER 30, 2020 AND 2019
(Translation of the Financial statements originally issued in Spanish – See Note 41)
(Figures stated in thousands of pesos in terms of purchasing power of pesos as of September 30, 2020, except that indicated otherwise)
Net financial Income/(Loss)
--- --- --- --- --- --- --- --- --- --- --- --- ---
Interest and adjustment for the application of the effective interest rate of financial assets measured at amortized cost Quarter ended 09/30/2020 Accumulated from beginning of year up to 09/30/2020 Quarter ended 09/30/2019 Accumulated from beginning of year up to 09/30/2019
Interest income
for cash and bank deposits 28,760 113,064 124,275 234,594
for government securities 1,370,422 4,399,533 2,692,067 4,434,756
for debt securities 263,773 1,299,165 520,048 522,400
for loans and other financing
Non-financial public sector 509,337 1,557,352 103,208 638,448
Financial sector 196,467 751,345 539,976 1,975,771
Non-financial private sector
Overdrafts 1,443,246 9,131,983 4,783,699 10,833,304
Documents 796,783 3,223,490 1,383,648 5,222,207
Mortgage loans 1,551,722 5,195,749 2,113,814 7,065,253
Pledge loans 105,656 330,270 184,913 607,898
Personal loans 7,156,123 22,216,041 8,869,787 28,517,016
Credit cards 2,505,333 8,064,054 3,729,438 12,478,512
Financial leases 4,706 42,437 40,403 186,359
Other 3,489,133 8,730,493 1,363,028 4,430,560
for repo transactions
Central Bank of Argentina 2,094,661 4,037,375 17,148
Other financial institutions 9,930 58,380 10,787 3,109,572
TOTAL 21,526,052 69,150,731 26,459,091 80,273,798
Interest expenses
for deposits
Non-financial private sector
Checking accounts (423,356 ) (679,717 ) (151,565 ) (447,955 )
Saving accounts (124,333 ) (422,085 ) (164,045 ) (575,325 )
Time deposits and investments accounts (14,152,513 ) (32,855,845 ) (20,153,470 ) (59,493,084 )
for Financing received from Central Bank of Argentina and other financial institutions (17,822 ) (57,979 ) (90,926 ) (265,203 )
for repo transactions
Other financial institutions (1,695 ) (97,810 ) (76,763 ) (370,520 )
for other financial liabilities (11,123 ) (47,489 ) (66,976 ) (162,675 )
Issued corporate bonds (347,449 ) (1,056,916 ) (1,136,128 ) (2,673,090 )
for subordinated corporate bonds (552,271 ) (1,608,109 ) (553,010 ) (1,536,181 )
TOTAL (15,630,562 ) (36,825,950 ) (22,392,883 ) (65,524,033 )

Delfín Jorge Ezequiel Carballo

Chairperson

- 80 -

EXHIBIT Q

(Continued)

CONSOLIDATED  BREAKDOWN  OF STATEMENT OF INCOME
FOR THE THREE AND NINE MONTH PERIODS ENDED SEPTEMBER 30, 2020 AND 2019
(Translation of the Financial statements originally issued in Spanish – See Note 41)
(Figures<br> stated in thousands of pesos in terms of purchasing power of pesos as of September 30, 2020, except that indicated<br> otherwise)
Income for the period Other comprehensive <br><br>income Income for the period Other comprehensive<br><br> income
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Interest and adjustment for<br><br> the application of the effective<br><br> interest rate of financial <br><br>assets measured at fair value<br><br> through other comprehensive <br><br>income Quarter <br><br>ended<br><br> 09/30/2020 Accumulated <br><br>from beginning <br><br>of year up to 09/30/2020 Quarter <br><br>ended <br><br>09/30/2020 Accumulated<br><br> from <br><br>beginning <br><br>of year up to 09/30/2020 Quarter<br><br> ended<br><br> 09/30/2019 Accumulated<br><br> from<br><br> beginning of <br><br>year up to 09/30/2019 Quarter<br><br> ended<br><br> 09/30/2019 Accumulated <br><br>from <br><br>beginning of<br><br> year up to 09/30/2019
From debt government securities 15,263,330 34,573,811 (482,983 ) (1,003,407 ) 24,664,671 63,184,239 176,935 166,040
Total 15,263,330 34,573,811 (482,983 ) (1,003,407 ) 24,664,671 63,184,239 176,935 166,040
Income for the period
--- --- --- --- --- --- --- --- ---
Commissions income Quarter ended 09/30/2020 Accumulated from beginning of year up to 09/30/2020 Quarter ended 09/30/2019 Accumulated from beginning of year up to 09/30/2019
Commissions related to obligations 3,016,433 8,850,024 3,369,411 10,392,629
Commissions related to credits 31,318 136,484 68,230 173,007
Commissions related to loans commitments and financial guarantees 104 454 3,095 7,355
Commissions related to securities value 150,503 355,673 72,748 255,459
Commissions for credit cards 2,017,432 5,866,787 1,935,701 5,614,425
Commissions for insurances 359,740 1,070,273 331,356 1,094,296
Commissions related to trading and foreign exchange transactions 162,300 378,518 166,092 446,449
Total 5,737,830 16,658,213 5,946,633 17,983,620
Loss for the period
--- --- --- --- --- --- --- --- --- --- --- --- ---
Commissions expenses Quarter ended 09/30/2020 Accumulated from beginning of year up to 09/30/2020 Quarter ended 09/30/2019 Accumulated from beginning of year up to 09/30/2019
Commissions related to trading and foreign exchange transactions (30,069 ) (82,767 ) (91,522 ) (137,971 )
Commissions paid ATM exchange (281,855 ) (816,887 ) (239,763 ) (631,310 )
Checkbooks commissions and compensating cameras (97,356 ) (278,661 ) (109,327 ) (311,622 )
Commissions credit cards and foreign trade (57,400 ) (177,669 ) (111,255 ) (333,881 )
Total (466,680 ) (1,355,984 ) (551,867 ) (1,414,784 )

Delfín Jorge Ezequiel Carballo

Chairperson

- 81 -

EXHIBIT R

VALUE ADJUSTMENT FOR CREDIT LOSSES - CONSOLIDATED ALLOWANCES FOR UNCOLLECTIBILITY RISK
AS OF SEPTEMBER 30, 2020
(Translation of the Financial statements originally issued in Spanish – See Note 41)
(Figures stated in thousands of pesos in terms of purchasing power of pesos as of September 30, 2020, except that indicated otherwise)
ECL of remanent life of financial asset
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Item Balances at beginning of the fiscal year ECL of<br> <br>the next 12 months Financial <br> instruments with a <br> significant increase<br> in credit risk Financial instruments <br> with<br> impairment Effect <br> monetary generated for provisions 09/30/2020
Other financial assets 12,605 9,688 (2,298 ) 19,995
Loans and other financing 6,199,709 2,140,385 1,125,199 249,673 (1,129,977 ) 8,584,989
Other financial institutions 33,749 (6,151 ) (6,151 ) 21,447
To the non-financial private sector and foreign residents
Overdrafts 943,767 28,529 44,102 495,225 (172,010 ) 1,339,613
Documents 449,160 74,191 80,984 (5,024 ) (81,866 ) 517,445
Mortgage loans 468,419 86,471 111,213 (14,787 ) (85,376 ) 565,940
Pledge loans 157,815 18,851 65,766 (15,410 ) (28,764 ) 198,258
Personal loans 2,246,910 402,455 186,999 (77,359 ) (409,528 ) 2,349,477
Credit cards 969,822 798,367 374,749 (10,484 ) (176,764 ) 1,955,690
Financial leases 6,544 (1,526 ) 316 1,677 (1,193 ) 5,818
Other 923,523 739,198 261,070 (124,165 ) (168,325 ) 1,631,301
Eventual commitments 21,122 4,865 (3,354 ) (3,847 ) 18,786
Other debt securities 2,369 1,466 (431 ) 3,404
TOTAL OF ALLOWANCES 6,235,805 2,156,404 1,121,845 249,673 (1,136,553 ) 8,627,174
VALUE ADJUSTMENT FOR CREDIT LOSSES - CONSOLIDATED ALLOWANCES FOR UNCOLLECTIBILITY RISK
---
AS OF DECEMBER 31, 2019
(Translation of the Financial statements originally issued in Spanish – See Note 41)
(Figures stated in thousands of pesos in terms of purchasing power of pesos as of September 30, 2020, except that indicated otherwise)
ECL of remanent life of financial asset
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Item Balances<br> at <br><br>beginning of <br> the fiscal year ECL<br> of the<br> next 12 <br> months Financial <br><br> instruments with a <br> significant increase<br> in credit risk Financial instruments <br> with<br> impairment Effect <br><br> monetary <br><br>generated for<br><br> provisions 12/31/2019
Other financial assets 12,605 12,605
Loans and other financing 7,278,312 551,910 146,277 770,122 (2,546,912 ) 6,199,709
Other financial institutions 70 33,703 (24 ) 33,749
To the non-financial private sector and foreign residents
Overdrafts 487,430 104,084 (80,146 ) 602,966 (170,567 ) 943,767
Documents 984,631 (44,312 ) 97,359 (243,964 ) (344,554 ) 449,160
Mortgage loans 460,138 2,371 108,368 58,559 (161,017 ) 468,419
Pledge loans 389,850 7,212 (128,546 ) 25,720 (136,421 ) 157,815
Personal loans 2,602,011 344,613 162,192 48,620 (910,526 ) 2,246,910
Credit cards 1,550,335 81,532 (96,210 ) (23,324 ) (542,511 ) 969,822
Financial leases 18,574 529 (3,018 ) (3,041 ) (6,500 ) 6,544
Other 785,273 22,178 86,278 304,586 (274,792 ) 923,523
Eventual commitments 20,185 1,080 6,920 (7,063 ) 21,122
Other debts securities 2,369 2,369
TOTAL OF ALLOWANCES 7,298,497 567,964 153,197 770,122 (2,553,975 ) 6,235,805

Delfín Jorge Ezequiel Carballo

Chairperson

- 82 -
CONDENSED SEPARATE INTERIM STATEMENT OF FINANCIAL POSITION
AS OF SEPTEMBER 30, 2020 AND DECEMBER 31,2019
(Translation of the Financial statements originally issued in Spanish – See Note 39)
(Figures stated in thousands of pesos in terms of purchasing power of pesos as of September 30, 2020, except that indicated otherwise)
Items Notes Exhibits 09/30/2020 12/31/2019
--- --- --- --- --- --- --- ---
ASSETS
Cash and Deposits in Banks 6 101,705,607 119,105,966
Cash 20,149,628 23,859,621
Central Bank of Argentina 66,366,745 67,452,287
Other Local and Foreign Entities 15,184,470 27,789,477
Other 4,764 4,581
Debt Securities at fair value through profit or loss 6 A 14,918,124 6,314,733
Derivative Financial Instruments 6 13,685 61,982
Repo transactions 6 54,703,042 1,330,400
Other financial assets 6 and 8 R 13,974,340 6,095,389
Loans and other financing 5 and 6 B, C, D and R 237,915,479 269,753,991
Non-financial Public Sector 4,009,092 7,888,422
Other Financial Entities 1,786,047 4,833,107
Non-financial Private Sector and Foreign Residents 232,120,340 257,032,462
Other Debt Securities 6 A and R 235,719,216 77,889,148
Financial Assets delivered as guarantee 6 and 26 12,149,567 13,035,069
Equity Instruments at fair value through profit or loss 6 and 11 A 1,626,493 1,878,534
Investment in subsidiaries, associates and joint arrangements 4,217,265 4,249,572
Property, plant and equipment F 30,870,931 31,449,278
Intangible Assets G 4,430,077 4,330,066
Other Non-financial Assets 8 1,868,101 1,117,650
Non-current assets held for sale 2,181,164 2,135,664
TOTAL ASSETS 716,293,091 538,747,442

Delfín Jorge Ezequiel Carballo

Chairperson

- 83 -
CONDENSED SEPARATE INTERIM STATEMENT OF FINANCIAL POSITION
AS OF SEPTEMBER 30, 2020 AND DECEMBER 31,2019
(Translation of the Financial statements originally issued in Spanish – See Note 39)
(Figures stated in thousands of pesos in terms of purchasing power of pesos as of September 30, 2020, except that indicated otherwise)
Items Notes Exhibits 09/30/2020 12/31/2019
--- --- --- --- --- --- --- --- --- ---
LIABILITIES
Deposits 6 H and I 480,889,480 320,901,178
Non-financial Public Sector 105,635,759 21,474,272
Financial Sector 440,978 384,185
Non-financial Private Sector and Foreign Residents 374,812,743 299,042,721
Derivative Financial Instruments 6 I 381 940,073
Repo Transactions 6 I 1,225,960
Other Financial Liabilities 6 and 13 I 26,234,910 24,013,447
Financing received from the Central Bank of Argentina and other financial entities 6 I 687,715 2,746,175
Issued Corporate Bonds 6 and 31 I 5,018,613 6,756,507
Current Income Tax Liabilities 16 9,848,459 9,887,756
Subordinated Corporate Bonds 6 and 31 I 31,529,966 29,730,457
Provisions 12 J 1,625,544 1,801,946
Deferred Income Tax Liabilities 2,534,570 196,272
Other Non-financial Liabilities 13 24,001,151 12,318,909
TOTAL LIABILITIES 582,370,789 410,518,680
SHAREHOLDERS’ EQUITY
Capital Stock 24 K 639,413 639,413
Non capital contributions 12,429,781 12,429,781
Adjustments to Shareholders’ Equity 43,864,265 43,864,265
Earnings Reserved 102,297,425 67,168,444
Unappropriated Retained Earnings (45,454,225 ) (19,814,167 )
Other Comprehensive Income accumulated (840,159 ) 158,872
Net Income for the period/ fiscal year 20,985,802 23,782,154
TOTAL SHAREHOLDERS’ EQUITY 133,922,302 128,228,762
TOTAL SHAREHOLDERS’ EQUITY AND LIABILITIES 716,293,091 538,747,442

The notes 1 to 39 to the condensed separate interim financial statement and the exhibits A to D, F to L, O, Q and R are an integral part of the condensed separate interim financial statement.

Delfín Jorge Ezequiel Carballo

Chairperson

- 84 -
CONDENSED SEPARATE STATEMENT OF INCOME
FOR THE THREE AND NINE MONTH PERIODS ENDED SEPTEMBER 30, 2020 AND 2019
(Translation of the Financial statements originally issued in Spanish – See Note 39)
(Figures stated in thousands of pesos in terms of purchasing power of pesos as of September 30, 2020, except that indicated otherwise)
Items Notes Exhibits Quarter <br><br>ended<br><br> 09/30/2020 Accumulated<br><br> from beginning<br><br> of year up to<br><br> 09/30/2020 Quarter <br><br>ended <br><br>09/30/2019 Accumulated<br><br> from beginning<br><br> of year up to<br><br> 09/30/2019
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Interest income Q 36,851,057 103,675,469 51,116,812 143,370,247
Interest expense Q (15,627,386 ) (36,822,774 ) (22,375,037 ) (65,506,187 )
Net Interest income 21,223,671 66,852,695 28,741,775 77,864,060
Commissions income 17 Q 5,617,336 16,392,831 5,910,302 17,843,802
Commissions expense Q (454,798 ) (1,333,568 ) (549,406 ) (1,408,060 )
Net Commissions income 5,162,538 15,059,263 5,360,896 16,435,742
Subtotal (Net Interest income +Net Commissions income) 26,386,209 81,911,958 34,102,671 94,299,802
Loss from measurement of financial instruments at fair value through profit or loss Q (7,088,903 ) (14,059,225 ) (16,618,798 ) (39,867,616 )
Profit / (Loss) from sold or derecognized assets at amortized cost 61,240 1,048,498 (281 ) (31,999 )
Differences in quoted prices of gold and foreign currency 18 1,161,399 2,537,130 2,059,333 2,488,116
Other operating income 19 1,009,330 3,143,508 1,368,496 7,735,132
Allowances for loan losses 5 (1,747,687 ) (5,256,927 ) (390,768 ) (3,457,660 )
Net Operating Income 19,781,588 69,324,942 20,520,653 61,165,775
Employee benefits 20 (6,103,842 ) (17,460,948 ) (6,293,428 ) (19,366,722 )
Administrative expenses 21 (3,361,596 ) (9,435,395 ) (4,105,258 ) (11,322,418 )
Depreciation and amortization of fixed assets F and G (1,010,586 ) (2,939,653 ) (946,331 ) (2,708,347 )
Other Operating Expenses 22 (4,558,080 ) (13,818,500 ) (9,328,895 ) (21,104,987 )
Operating Income 4,747,484 25,670,446 (153,259 ) 6,663,301
(Loss) / Income from subsidiaries, associates and joint arrangements (530,002 ) (280,164 ) 17,742 1,263,443
Gain on net monetary position 4,898,890 5,815,662 8,338,219 19,084,229
Income before tax on continuing operations 9,116,372 31,205,944 8,202,702 27,010,973
Income tax on continuing operations 16.b) (3,040,819 ) (10,220,142 ) 908,944 (10,185,734 )
Net Income from continuing operations 6,075,553 20,985,802 9,111,646 16,825,239
Net Income for the period 6,075,553 20,985,802 9,111,646 16,825,239

Delfín Jorge Ezequiel Carballo

Chairperson

- 85 -
SEPARATE EARNINGS PER SHARE
FOR THE THREE AND NINE MONTH PERIODS ENDED SEPTEMBER 30, 2020 AND 2019
(Translation of the Financial statements originally issued in Spanish – See Note 39)
(Figures stated in thousands of pesos in terms of purchasing power of pesos as of September 30, 2020, except that indicated otherwise)
Items Quarter<br><br> ended<br><br> 09/30/2020 Accumulated <br><br>from beginning of <br><br>year up to <br><br>09/30/2020 Quarter<br><br> ended<br><br> 09/30/2019 Accumulated<br><br> from<br><br> beginning of<br><br> year up to<br><br> 09/30/2019
--- --- --- --- --- --- --- --- ---
Net Profit attributable to Parent’s shareholders 6,075,553 20,985,802 9,111,646 16,825,239
PLUS: Potential diluted earnings per common share
Net Profit attributable to Parent’s shareholders adjusted as per diluted earnings 6,075,553 20,985,802 9,111,646 16,825,239
Weighted average of outstanding common shares for the fiscal year 639,413 639,413 639,398 639,403
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 639,413 639,413 639,398 639,403
Basic earnings per share (in pesos) 9.5018 32.8204 14.2503 26.3140

Delfín Jorge Ezequiel Carballo

Chairperson

- 86 -
CONDENSED SEPARATE INTERIM STATEMENT OF OTHER COMPREHENSIVE INCOME
FOR THE THREE AND NINE MONTH PERIODS ENDED SEPTEMBER 30, 2020 AND 2019
(Translation of the Financial statements originally issued in Spanish – See Note 39)
(Figures stated in thousands of pesos in terms of purchasing power of pesos as of September 30, 2020, except that indicated otherwise)
Items Notes Exhibits Quarter <br><br>ended 09/30/2020 Accumulated from beginning of year up to 09/30/2020 Quarter <br><br>ended 09/30/2019 Accumulated <br><br>from<br><br> beginning of <br><br>year up to <br><br>09/30/2019
--- --- --- --- --- --- --- --- --- --- --- ---
Net Income for the period 6,075,553 20,985,802 9,111,646 16,825,239
Items of Other Comprehensive Income that will be reclassified to profit or loss
Foreign currency translation differences in financial statements conversion 51,818 127,449 491,649 275,188
Foreign currency translation differences for the period 51,818 127,449 491,649 275,188
Profit or losses for financial instruments measured at fair value through OCI (IFRS 9(4.1.2)(a)) (1,117,594 ) (1,639,908 ) 451,942 471,351
Profit or losses for financial instruments at fair value through OCI (*) Q (1,070,465 ) (1,516,835 ) 587,858 589,790
Income tax 16.b) (47,129 ) (123,073 ) (135,916 ) (118,439 )
Interest in Other Comprehensive Income/ (Loss) of associates and joint ventures accounted for using the participation method 587,482 513,428 (410,577 ) (423,405 )
Income/ (Loss) for the period from interest in Other Comprehensive Income of associates and joint ventures accounted for using the participation method 587,482 513,428 (410,577 ) (423,405 )
Total Other Comprehensive (Loss) / Income that will be reclassified to profit or loss for the period (478,294 ) (999,031 ) 533,014 323,134
Total Other Comprehensive (Loss) / Income (478,294 ) (999,031 ) 533,014 323,134
Total Comprehensive Income 5,597,259 19,986,771 9,644,660 17,148,373
(*) Net amount of reclassifications to the income<br>statement of instruments classified at fair value through other comprehensive income that were derecognized or charged during<br>the period. At September 30, 2020 and 2019 the reclassified amounts at profit or loss was (1,172,590) and (8,247,577), respectively.
--- ---

The notes 1 to 39 to the condensed separate interim financial statement and the exhibits A to D, F to L, O, Q and R are an integral part of the condensed separate interim financial statement.

Delfín Jorge Ezequiel Carballo

Chairperson

- 87 -
CONDENSED SEPARATE INTERIM STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY
FOR THE NINE MONTH PERIOD ENDED SEPTEMBER 30, 2020
(Translation of the Financial statements originally issued in Spanish – See Note 39)
(Figures stated in thousands of pesos in terms of purchasing power of pesos as of September 30, 2020, except that indicated otherwise)
Capital stock Non- capital  contributions Other comprehensive income Earnings Reserved
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Changes Notes Outstanding shares In treasury Additional paid-in capital Adjustments to Shareholders’ Equity Accumulative foreign currency translation difference in financial statements conversion Other Legal Other Unappropriated Retained Earnings Total Equity
Amount at<br> the beginning of the fiscal year restated 639,413 12,429,781 43,864,265 705,527 (564,655 ) 18,846,857 48,321,587 3,967,987 128,228,762
Total comprehensive income<br> for the period
- Net income for the period 20,985,802 20,985,802
- Other comprehensive<br> income/ (loss) for the period 127,449 (1,126,480 ) (999,031 )
Distribution of unappropriated<br> retained earnings as approved by Shareholders´ Meeting held on April 30, 2020
Legal reserve 9,978,718 (9,978,718 )
Normative<br> reserve 39,443,494 (39,443,494 )
Cash dividends 34 (14,293,231 ) (14,293,231 )
Amount at the end of the period 639,413 12,429,781 43,864,265 832,976 (1,673,135 ) 28,825,575 73,471,850 (24,468,423 ) 133,922,302
CONDENSED SEPARATE INTERIM STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY
---
FOR THE NINE MONTH PERIOD ENDED SEPTEMBER 30, 2019
(Translation of the Financial statements originally issued in Spanish – See Note 39)
(Figures stated in thousands of pesos in terms of purchasing power of pesos as of September 30, 2020, except that indicated otherwise)
Capital<br> stock Non-<br> capital<br>  Contributions Other<br> comprehensive income Earnings<br> Reserved
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Changes Notes Outstanding<br> shares In<br> treasury Additional<br> paid-in capital Adjustments<br> to Shareholders’ Equity Accumulative<br> foreign <br> currency translation <br> difference in financial <br> statements conversion Other Legal Other Unappropriated<br> Retained Earnings Total<br> <br> Equity
Amount at the<br> beginning of the fiscal year restated 640,715 28,948 12,428,461 43,896,564 601,187 (708,010 ) 12,928,892 28,449,843 15,944,082 114,210,682
Adjustment<br> and retroactive restatements 3 370,000 370,000
Amount at the beginning<br> of the fiscal year adjusted and restated 640,715 28,948 12,428,461 43,896,564 601,187 (708,010 ) 12,928,892 28,449,843 16,314,082 114,580,682
Total comprehensive income<br> for the period
- Net income for the period 16,825,239 16,825,239
- Other comprehensive income/<br> (loss) for the period 275,188 47,946 323,134
Distribution of unappropriated<br> retained earnings as approved by Shareholders´ Meeting held on April 30, 2019
Legal reserve 5,917,966 (5,917,966 )
Normative reserve 6,538,425 (6,538,425 )
Cash dividends (10,402,570 ) (10,402,570 )
Other 23,671,870 (23,671,870 )
Own shares in treasury 24 (1,317 ) 1,317
Decrease<br> of own shares in treasury (30,625 ) (33,753 ) 64,018
Amount<br> at the end of the period 639,398 12,428,461 43,862,811 876,375 (660,064 ) 18,846,858 48,321,586 (2,988,940 ) 121,326,485

The notes 1 to 39 to the condensed separate interim financial statement and the exhibits A to D, F to L, O, Q and R are an integral part of the condensed separate interim financial statement.

Delfín Jorge Ezequiel Carballo

Chairperson

-88-
CONDENSED SEPARATE INTERIM STATEMENT OF CASH FLOWS
FOR THE NINE MONTH PERIODS ENDED SEPTEMBER 30, 2020 AND 2019
(Translation of the Financial statements originally issued in Spanish – See Note 39)
(Figures stated in thousands of pesos in terms of purchasing power of pesos as of September 30, 2020, except that indicated otherwise)
Items Notes 09/30/2020 09/30/2019
--- --- --- --- --- --- --- ---
CASH FLOWS FROM OPERATING ACTIVITIES
Income for the period before Income Tax 31,205,944 27,010,973
Adjustment for the total monetary effect of the period (5,815,662 ) (19,084,229 )
Adjustments to obtain cash flows from operating activities:
Amortization and depreciation 2,939,653 2,708,347
Allowance for loan losses 5,256,927 3,457,660
Difference in quoted prices of foreign currency (10,498,245 ) (28,490,180 )
Other adjustments 37,511,601 89,601,220
Net increase / (decrease) from operating assets:
Debt Securities at fair value through profit and loss (8,603,391 ) 2,565,194
Derivative financial instruments 48,297 (49,723 )
Repo transactions (53,372,642 )
Loans and other financing
Non-financial public sector 3,879,330 2,697,340
Other financial entities 3,047,060 7,252,611
Non-financial private sector and foreign residents 19,622,545 58,015,563
Other debt securities (87,565,264 ) (11,844,977 )
Financial assets delivered as guarantee 885,502 (1,910,976 )
Equity instruments at fair value through profit or loss 252,041 1,087,143
Other assets (8,546,300 ) (1,069,968 )
Net increase / (decrease) from operating liabilities:
Deposits
Non-financial public sector 84,161,487 (8,529,922 )
Financial sector 56,793 121,400
Non-financial private sector and foreign residents 75,770,022 (86,157,843 )
Derivative financial instruments (939,692 ) 198,679
Repo transactions (1,225,960 ) 2,651,201
Other liabilities 980,637 (6,405,839 )
Payments for Income Tax (5,737,063 ) (9,043,418 )
TOTAL CASH FROM OPERATING ACTIVITIES (A) 83,313,620 24,780,256

Delfín Jorge Ezequiel Carballo

Chairperson

-89-
CONDENSED SEPARATE INTERIM STATEMENT OF CASH FLOWS
FOR THE NINE MONTH PERIODS ENDED SEPTEMBER 30, 2020 AND 2019
(Translation of the Financial statements originally issued in Spanish – See Note 39)
(Figures stated in thousands of pesos in terms of purchasing power of pesos as of September 30, 2020, except that indicated otherwise)
Items Notes 09/30/2020 09/30/2019
--- --- --- --- --- --- --- --- ---
CASH FLOWS FROM INVESTING ACTIVITIES
Payments:
Acquisition of PPE, intangible assets and other assets (2,338,001 ) (3,839,077 )
TOTAL CASH USED IN INVESTING ACTIVITIES (B) (2,338,001 ) (3,839,077 )
CASH FLOWS FROM FINANCING ACTIVITIES
Payments:
Dividends (10,402,570 )
Acquisition or redemption of equity instruments (365,330 )
Non subordinated corporate bonds (1,472,969 ) (2,818,903 )
Central Bank of Argentina (9,341 )
Financing from local financial entities (1,993,840 ) (1,317,291 )
Subordinated corporate bonds (994,471 ) (956,823 )
Other payments related to financing activities (363,253 ) (162,363 )
Proceeds:
Central Bank of Argentina 8,245
TOTAL CASH USED IN FINANCING ACTIVITIES (C) (4,833,874 ) (16,015,035 )
EFFECT OF EXCHANGE RATE FLUCTUATIONS (D) 18,160,869 42,433,953
MONETARY EFFECT ON CASH AND CASH EQUIVALENTS (E) (41,438,169 ) (85,473,450 )
NET INCREASE/ (DECREASE) IN CASH AND CASH EQUIVALENTS (A+B+C+D+E) 52,864,445 (38,113,353 )
CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE FISCAL YEAR 23 175,275,834 242,393,201
CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD 23 228,140,279 204,279,848
The notes 1 to 39 to the condensed separate interim financial statement and the exhibits A to D, F to L, O, Q and R are an integral part of the condensed separate interim financial statement.
---

Delfín Jorge Ezequiel Carballo

Chairperson

-90-

NOTES TO THE CONDENSED SEPARATE INTERIMFINANCIAL STATEMENTS

AS OF SEPTEMBER 30, 2020

(Translation of Financial statements originally issued in Spanish – See Note 39)

(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of September 30, 2020, unless expressly stated)

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 SA, Macro Fiducia SA, Macro Fondos SGFCISA and Argenpay SAU.

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 it 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 was mainly focused on the regional areas outside the City of Buenos Aires. 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. In addition, 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 May 21, 2019 the Bank acquired 100% of Argenpay SA (see note 1 to the condensed consolidated interim financial statements).

Moreover, on July 17 and August 26, 2020, the Bank made irrevocable capital contributions in advance of future share subscription to the company Play Digital SA, which were accepted on those dates for the Extraordinary Shareholder’s Meeting of that company. Additionally, on October 15, 2020, the Bank made a new irrevocable capital contribution for 61,689, which was accepted on that date (see note 1 to the condensed consolidated interim financial statements).

On November 30, 2020, the Bank’s Board of Directors approved the issuance of these condensed separate interim financial statements.

2. OPERATIONS OF THE BANK

Note 2 to the condensed consolidated interim financial statements includes a detailed description of the agreements that relate the Bank with the provincial and municipalities governments.

3. BASIS FOR THE PREPARATION OF THESE FINANCIAL STATEMENTS AND APPLICABLE ACCOUNTING STANDARDS

Applicable Accounting Standards

These condensed separate interim financial statements of the Bank were prepared pursuant with Conceptual Framework as established by BCRA (Communiqué “A” 6114 as supplementary rules of the BCRA). Apart from 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).

From the transitory exceptions established by BCRA to the application of effective IFRS, the following have affected the preparation of these condensed consolidated interim financial statements.

91

NOTES TO THE CONDENSED SEPARATE INTERIMFINANCIAL STATEMENTS

AS OF SEPTEMBER 30, 2020

(Translation of Financial statements originally issued in Spanish – See Note 39)

(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of September 30, 2020, unless expressly stated)

a) According to Communiqué “A” 6114, as supplementary, and in the convergence process<br>through IFRS, the BCRA established that since fiscal years beginning on January 1, 2020 included, financial institutions defined<br>as Group A by BCRA rules, in which the Bank is included, begin to apply section 5.5 “Impairment” of the IFRS 9 “Financial<br>Instruments” (sections 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.
b) Additionally, on April 29, 2019, the Bank received a Memorandum from the BCRA, which established<br>specifics guidelines related to the measurement of the Bank’s holding in Prisma Medios de Pago SA as explained in note 11.<br>Considering such guidelines, the Bank adjusted the fair value previously determined.
--- ---

As of the date of issuance of these condensed separate interim financial statements, the Bank is in the process of quantifying the effect of the application of section 5.5 “Impairment” will have and the needed adjustment over the fair value of the Bank’s holding in Prisma Medios de Pago SA, as mentioned in sections a) and b) abovementioned, which could be material.

Except for what was mentioned in the preceding 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” 6840. Generally, the BCRA does not allow the anticipated application of any IFRS, unless otherwise expressly stated.

Note 3 to the condensed consolidated interim financial statements presents a detailed description 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.

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. When using this method, investments are initially recognized at cost, and such amount increases or decreases to recognize investor’s interest in profits and losses of the entity after the date of acquisition or creation.

Shares in profits and losses of subsidiaries and associates are recognized under “Income from subsidiaries, associates and joint ventures” in the statement of income. Ownership interest in other comprehensive income of subsidiaries is accounted for under “Income for the period in other comprehensive income of subsidiaries, associates and joint ventures accounted for using the participation method”, in the statement of other comprehensive income.

Transcription in the Books of Accounts

As of the date of issuance of these condensed separate interim financial statements, the same are in the process of being transcribed in the Books of Accounts of Banco Macro SA.

Reclassification of financial assets and liabilities – Changes in business model

During July and August 2020, the Bank’s management decided to update the objective related to the investments in Federal Government Treasury Bonds adjusted by CER 1%, resulting in a reclassification from business model at amortized cost to business model at fair value to profit or loss (FVPL) and the investments in Federal Government Treasury Bonds adjusted by CER maturing 2021, resulting in a reclassification business model at FVPL to business model at fair value through other comprehensive income (FVOCI). For further information see note 3 section “Reclassification of financial assets and liabilities – Changes in business model” to the Condensed consolidated interim financial statements.

Delfín Jorge Ezequiel Carballo

Chairperson

92

NOTES TO THE CONDENSED SEPARATE INTERIMFINANCIAL STATEMENTS

AS OF SEPTEMBER 30, 2020

(Translation of Financial statements originally issued in Spanish – See Note 39)

(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of September 30, 2020, unless expressly stated)

New standards adopted

New standards adopted are described in note 3 to the condensed consolidated interim financial statements.

New pronoucements

New pronouncements are described in note 3 to the condensed consolidated interim 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 statement of financial position and they are, therefore, an integral part of the total risk of the Bank. These Transactions are detailed in note 4 to the condensed consolidated interim financial statements.

Risks related to the contingent transactions described above have been evaluated and are controlled within the framework of the Bank’s credit risk policy, described in note 41 to the consolidated financial statements as of December 31, 2019, already issued.

5. LOSS ALLOWANCE FOR EXPECTED CREDIT LOSSES ON CREDIT EXPOSURES NOT MEASURED AT FAIR VALUE THROUGHPROFIT OR LOSS

Note 5 to the condensed consolidated interim financial statements, are detailed the allowances recognized by the Bank under this concept.

During nine-month periods ended September 30, 2020 and 2019, losses for ECL related to loans and other financing and other debt securities measured at amortized cost amounted to 5,256,927 and 3,457,660, respectively, which were recognized in the condensed separate interim statements of income under the item “allowance for loan losses”.

In addition, in exhibit R “Value adjustment for credit losses for credit losses – Allowance for uncollectibility risk” are also disclosed the ECL movements by portfolio and products.

6. FAIR VALUE QUANTITATIVE AND QUALITATIVE DISCLOSURES

Note 6 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 in active markets that the Bank accesses to at the<br>measurement day for identical assets or liabilities. The Bank considers markets as active only if there are sufficient trading<br>activities with regards to the volume and liquidity of the identical assets or liabilities and when there are binding and exercisable<br>price quotes available at each reporting period.

Delfín Jorge Ezequiel Carballo

Chairperson

93

NOTES TO THE CONDENSED SEPARATE INTERIMFINANCIAL STATEMENTS

AS OF SEPTEMBER 30, 2020

(Translation of Financial statements originally issued in Spanish – See Note 39)

(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of September 30, 2020, unless expressly stated)

- Level 2: Valuation techniques for which the data and variables having a significant impact on the<br>determination of the fair value 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 prices for identical instruments<br>in inactive markets and observable inputs other than quoted prices, such as interest rates and yield curves, implied volatilities,<br>and credit spreads. In addition, adjustments to level 2 inputs may be required for the condition or location of the asset or the<br>extent to which it relates to items that are comparable to the valued instrument. However, if such adjustments are based on unobservable<br>inputs which are significant to the entire measurement, 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 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, as of September 30, 2020 and December 31, 2019:

Description Financial assets and financial liabilities measured at fair value on a recurring basis as of September 30, 2020
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 14,918,124 14,843,082 75,042
Derivative Financial Instruments 13,685 118 13,567
Other financial assets 47,860 47,860
Equity instruments at fair value through profit or loss 1,626,493 6,760 1,619,733
At fair value through OCI
Other debt securities 214,192,470 87,442,265 126,750,205
Total 230,798,632 102,292,225 126,763,772 1,742,635
Financial liabilities
At fair value through profit or loss
Derivatives financial instruments 381 357 24
Total 381 357 24
Description Financial assets and financial liabilities measured at fair value on a recurring basis as of December 31, 2019
--- --- --- --- --- --- --- --- ---
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 6,314,733 5,314,023 3,984 996,726
Derivative Financial Instruments 61,982 38,636 23,346
Other financial assets 28,128 28,128
Equity instruments at fair value through profit or loss 1,878,534 11,435 1,867,099
At fair value through OCI
Other debt securities 56,272,413 44,173,821 12,098,592
Total 64,555,790 49,537,915 12,125,922 2,891,953
Financial liabilities
At fair value through profit or loss
Derivatives financial instruments 940,073 940,073
Total 940,073 940,073

Delfín Jorge Ezequiel Carballo

Chairperson

94

NOTESTO THE CONDENSED SEPARATE INTERIM FINANCIAL STATEMENTS

AS OF SEPTEMBER 30, 2020

(Translation of Financial statements originally issued in Spanish – See Note 39)

(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of September 30, 2020, unless expressly stated)

Below is the reconciliation between the amounts at the beginning and the end of the period or fiscal, as applicable, year for the financial assets and liabilities recognized at fair value, categorized as level 3:

As of September 30, 2020
Description Debt<br><br> securities Other financial assets Investments in equity instruments
Amount at the beginning 996,726 28,128 1,867,099
Transfers to Level 3
Transfers from Level 3
Profit and loss 163,325 4,090 94,522
Recognition and derecognition (982,427 ) 19,366 9,244
Monetary effects (102,582 ) (3,724 ) (351,132 )
Amount at end of the period 75,042 47,860 1,619,733
As of December 31, 2019
--- --- --- --- --- --- --- --- --- --- ---
Description Debt<br><br> securities Other financial assets Investments in equity instruments
Amount at the beginning 2,428,687 171,502 79,465
Transfers to Level 3
Transfers from Level 3
Profit and loss 822,851 16,831 (138,093 )
Recognition and derecognition (1,565,159 ) (128,689 ) 2,854,090 (*)
Monetary effects (689,653 ) (31,516 ) (928,363 )
Amount at end of the fiscal year 996,726 28,128 1,867,099

(*)It is mainly related to the reclassification from non-current assets held for sale of Prisma Medios de Pago SA. See also note 11 to the condensed consolidated interim financial statements.

In note 6 to the condensed consolidated interim financial statements, are detailed the valuation techniques and significant unobservable inputs used in the valuation of assets and liabilities 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 end.

As of September 30, 2020 and December 31, 2019, the Bank has not recognized any transfers between levels 1, 2 and 3 of the fair value hierarchy.

Financial assets and liabilities not recognized 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 September 30, 2020 and December 31, 2019:

09/30/2020
Carrying<br> amount Level<br> 1 Level<br> 2 Level<br> 3 Fair<br>value
Financial assets
Cash<br> and deposits in banks 101,705,607 101,705,607 101,705,607
Repo<br> transactions 54,703,042 54,703,042 54,703,042
Other<br> financial assets 13,926,480 13,926,480 13,926,480
Loans<br> and other financing 237,915,479 223,208,226 223,208,226
Other<br> debt securities 21,526,746 635,995 20,568,160 268,090 21,472,245
Financial<br> assets delivered as <br><br> guarantee 12,149,567 12,149,567 12,149,567
441,926,921 183,120,691 20,568,160 223,476,316 427,165,167

Delfín Jorge Ezequiel Carballo

Chairperson

95

NOTES TO THE CONDENSED SEPARATE INTERIMFINANCIAL STATEMENTS

AS OF SEPTEMBER 30, 2020

(Translation of Financial statements originally issued in Spanish – See Note 39)

(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of September 30, 2020, unless expressly stated)

09/30/2020
Carrying amount Level 1 Level 2 Level 3 Fair value
Financial liabilities
Deposits 480,889,480 211,431,871 269,239,978 480,671,849
Other financial liabilities 26,234,910 25,021,258 1,211,681 26,232,939
Financing received from the BCRA and other financial entities 687,715 390,778 289,725 680,503
Issued corporate bonds 5,018,613 4,039,485 4,039,485
Subordinated corporate bonds 31,529,966 22,852,500 22,852,500
544,360,684 236,843,907 28,393,391 269,239,978 534,477,276
12/31/2019
--- --- --- --- --- --- --- --- --- --- ---
Carrying<br> amount Level<br> 1 Level<br> 2 Level<br> 3 Fair<br>value
Financial assets
Cash and deposits<br> in banks 119,105,966 119,105,966 119,105,966
Repo transactions 1,330,400 1,330,400 1,330,400
Other financial assets 6,067,261 6,067,261 6,067,261
Loans and other financing 269,753,991 237,297,282 237,297,282
Other debt securities 21,616,735 1,910,912 20,347,261 1,491,976 23,750,149
Financial assets delivered<br> as guarantee 13,035,069 11,717,917 11,717,917
430,909,422 140,132,456 20,347,261 238,789,258 399,268,975
Financial liabilities
Deposits 320,901,178 179,360,367 141,817,869 321,178,236
Repo transactions 1,225,960 1,225,960 1,225,960
Other financial liabilities 24,013,447 22,671,043 1,337,836 24,008,879
Financing received from<br> the BCRA and other financial entities 2,746,175 2,246,906 432,121 2,679,027
Issued corporate bonds 6,756,507 1,687,627 3,251,452 4,939,079
Subordinated corporate<br> bonds 29,730,457 22,427,007 22,427,007
385,373,724 205,504,276 25,884,591 145,069,321 376,458,188
7. INVESTMENTS IN ASSOCIATES AND JOINT ARRANGEMENTS
--- ---
The Bank’s interests on associates and joint ventures are disclosed in note 7 to the<br> condensed consolidated interim financial statements.

Delfín Jorge Ezequiel Carballo

Chairperson

96

NOTES TO THE CONDENSED SEPARATE INTERIMFINANCIAL STATEMENTS

AS OF SEPTEMBER 30, 2020

(Translation of Financial statements originally issued in Spanish – See Note 39)

(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of September 30, 2020, unless expressly stated)

8. OTHER FINANCIAL AND NON-FINANCIAL ASSETS
The  breakdown of other financial and non-financial assets as of September 30,<br> 2020 and December 31, 2019 is as follows:
Other financial assets 09/30/2020 12/31/2019
--- --- --- --- --- --- ---
Receivables from spot sales of foreign currency pending settlements 7,658,638 16,438
Sundry debtors (see note 11) 6,110,405 5,697,889
Receivables from spot sales of government securities pending settlements 100,867 151,927
Private securities 47,860 28,128
Other 76,565 213,612
Allowances (19,995 ) (12,605 )
13,974,340 6,095,389
Other non-financial assets 09/30/2020 12/31/2019
--- --- --- --- ---
Investment property (see Exhibit F) 749,701 698,906
Advanced prepayment 608,487 286,905
Tax advances 452,813 44,515
Other 57,100 87,324
1,868,101 1,117,650

Delfín Jorge Ezequiel Carballo

Chairperson

97

NOTES TO THE CONDENSED SEPARATE INTERIMFINANCIAL STATEMENTS

AS OF SEPTEMBER 30, 2020

(Translation of Financial statements originally issued in Spanish – See Note 39)

(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of September 30, 2020, unless expressly stated)

Disclosures related to allowance for ECL are detailed in note 5 “Loss allowance for<br> credit losses on credit exposures not measured at fair value through profit or loss”.
9. 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 a 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<br>a member).
--- ---
Key management personnel are those persons having authority and responsibility for planning, directing and controlling the activities<br>of the Bank, directly or indirectly. The Bank considers as key management personnel, for the purposes of IAS 24, the members of<br>the Board of Directors and the senior management members of the Risk Management Committee, the Assets and Liabilities Committee<br>and the Senior Credit Committee.
---
As of September 30, 2020 and December 31, 2019, amounts related to transactions performed with related parties are as<br>follows:
---
Information<br> as of September 30, 2020
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Main<br> subsidiaries
Macro<br> Bank Limited Macro<br> Securities SA Macro<br> Fondos SGFCISA Argenpay<br> SAU Associates Key<br> management personnel (1) Other<br> related parties Total
ASSETS
Cash<br> and deposits in banks 610 610
Derivative<br> instruments 12,340 12,340
Repo<br> transactions 732,204 732,204
Loans<br> and other financing  (2)
Documents
Overdraft 23,628 226,520 250,148
Credit<br> cards 28,375 4,320 32,695
Lease 1,676 5,622 7,298
Mortgage<br> loans 11,364 11,364
Personal<br> loans 63,759 63,759
Other<br> loans 637,811 395,139 1,032,950
Guarantees<br> granted 1,024,652 1,024,652
Total<br> Assets 610 1,371,691 127,126 1,668,593 3,168,020
LIABILITIES
Deposits 8 1,273,344 118,758 26,243 37,805 375,261 784,112 2,615,531
Other<br> financial liabilities 134 23,531 23,665
Other<br> non-financial liabilities 8,462 8,462
Total<br> Liabilities 8 1,273,344 118,758 26,243 37,805 375,395 816,105 2,647,658
(1) Includes close family members of the key management personnel.
--- ---
(2) The maximum financing amount for loans and other financing as of September 30, 2020 for Macro<br>Securities SA, Key management personnel and other related parties amounted to 641,021, 1,042,928 and 4,432,677, respectively.
--- ---

Delfín Jorge Ezequiel Carballo

Chairperson

98

NOTES TO THE CONDENSED SEPARATE INTERIMFINANCIAL STATEMENTS

AS OF SEPTEMBER 30, 2020

(Translation of Financial statements originally issued in Spanish – See Note 39)

(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of September 30, 2020, unless expressly stated)

Information as of December 31, 2019
Main subsidiaries
Macro Bank Limited Macro Securities SA Macro Fondos SGFCISA Argenpay SAU Associates Key management personnel (1) Other related parties Total
ASSETS
Cash and deposits in banks 587 587
Other financial assets 144,066 144,066
Loans and other financing  (2)
Documents 673,118 673,118
Overdraft 813,716 1,297,574 2,111,290
Credit cards 38,794 28,817 67,611
Lease 4,138 8,377 12,515
Mortgage loans 58,733 58,733
Other loans 409,209 409,209
Guarantees granted 698,834 698,834
Total Assets 587 148,204 911,243 3,115,929 4,175,963
LIABILITIES
Deposits 13 1,101,409 102,745 1,458 28,026 15,898,947 495,875 17,628,473
Other financial liabilities 100 6,843 6,943
Total liabilities 13 1,101,409 102,745 1,458 28,026 15,899,047 502,718 17,635,416
(1) Includes close family members of the key management personnel.
--- ---
(2) The maximum financing amount for loans and other financing as of December 31, 2019 for Macro<br>Securities SA, Key management personnel and other related parties amounted to de 6,344, 967,919 and 4,400,907, respectively.
--- ---
Amounts related to transactions generated during the nine-month periods ended September 30, 2020 and 2019 with related parties<br>are as follows:
---
As<br> of September 30, 2020
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Main<br> subsidiaries
Macro<br> Bank Limited Macro<br> Securities SA Macro<br> Fondos SGFCISA Argenpay<br> SAU Associates Key<br> management personnel (1) Other<br> related parties Total
INCOME<br> / (LOSS)
Interest<br> income 2,299 46,205 436,233 484,737
Interest<br> expense (5,166 ) (1,414,605 ) (36,422 ) (1,456,193 )
Commissions<br> income 6,467 204 55 26 4,280 11,032
Commissions<br> expense (122 ) (211 ) (333 )
Net<br> income from measurement of financial instruments at fair value through profit or loss 3,731 3,731
Other<br> operating income 3 1 17 21
Allowance<br> for loan losses (8,014 ) (8,014 )
Administrative<br> expense (108,377 ) (108,377 )
Other<br> operating expense (58,784 ) (58,784 )
Total<br> Income / (loss) 3 752 204 1 (5,111 ) (1,368,496 ) 240,467 (1,132,180 )
(1) Includes close family members of the key management personnel.
--- ---

Delfín Jorge Ezequiel Carballo

Chairperson

99

NOTES TO THE CONDENSED SEPARATE INTERIMFINANCIAL STATEMENTS

AS OF SEPTEMBER 30, 2020

(Translation of Financial statements originally issued in Spanish – See Note 39)

(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of September 30, 2020, unless expressly stated)

As<br> of September 30, 2019
Main<br> subsidiaries
Macro<br> Bank Limited Macro<br> Securities SA Macro<br> Fondos SGFCISA Argenpay<br> SAU Associates Key<br> management personnel (1) Other<br> related parties Total
INCOME<br> / (LOSS)
Interest<br> income 6,797 4,170 177,014 187,981
Interest<br> expense (2,130 ) (1,059,349 ) (297,983 ) (1,359,462 )
Commissions<br> income 495 174 205 28 5,029 5,931
Net<br> loss from measurement of financial instruments at fair value through profit or loss (22,452 ) (34,485 ) (56,937 )
Other<br> operating income 4 32 36
Administrative<br> expense (27,166 ) (27,166 )
Other<br> operating expense (81,197 ) (81,197 )
Total<br> Income / (loss) 4 7,292 174 (1,925 ) (1,077,603 ) (258,756 ) (1,330,814 )
(1) Includes close family members of the key management personnel.
--- ---
Transactions generated by the Bank with other related parties to it for transactions arranged within the course of the usual and<br>ordinary course of business were performed in normal market conditions, both as to interest rates and prices and as to the required<br>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 September 30, 2020 and 2019, totaled<br>188,694 and 213,480, respectively.
---
In addition, fees received by the Directors as of September 30, 2020 and 2019 amounted to 1,266,139 and 1,332,576, respectively.
---
Additionally, the composition of the Board of Directors and key management personnel is as follows:
---
09/30/2020 12/31/2019
--- --- --- --- ---
Board of Directors 13 14
Senior manager of the key management personnel 10 10
23 24
10. MODIFICATION OF FINANCIAL ASSETS
--- ---
The financial assets modified during the period and their new gross carrying amounts are described in note 10 to the condensed<br>consolidated interim financial statements.
---
11. EQUITY INSTRUMENTS AT FAIR VALUE THROUGH PROFIT OR LOSS – PRIMA MEDIOS DE PAGO SA
--- ---
The Bank’s investment in Prisma Medios de Pago SA as of September 30, 2020 and December 31, 2019 is described<br>in note 11 to the condensed consolidated interim financial statements.
---
12. PROVISIONS
--- ---
This item includes the amounts estimated to face a liability of probable occurrence, which if occurring, would originate a loss<br>for the Bank.
---
Exhibit J “Changes in Provisions” presents the changes in provisions during the period or fiscal year, as applicable,<br>ended on September 30, 2020 and December 31, 2019.
---

Delfín Jorge Ezequiel Carballo

Chairperson

100

NOTES TO THE CONDENSED SEPARATE INTERIMFINANCIAL STATEMENTS

AS OF SEPTEMBER 30, 2020

(Translation of Financial statements originally issued in Spanish – See Note 39)

(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of September 30, 2020, unless expressly stated)

The expected terms to settle these obligations are detailed in note 12 to the condensed consolidated interim financial statements.
13. OTHER FINANCIAL AND NON-FINANCIAL LIABILITIES
--- ---
The breakdown of other financial and non-financial liabilities as of September 30, 2020 and December 31, 2019 is as<br>follows:
---
Other financial liabilities 09/30/2020 12/31/2019
--- --- --- --- ---
Credit and debit card settlement - due to merchants 12,042,562 16,484,252
Amounts payable for spot purchases of foreign currency pending settlement 7,697,383 28,285
Payments orders pending settlement foreign exchange 2,602,567 2,505,846
Collections and other transactions on account and behalf others 1,183,802 1,923,442
Finance leases liabilities 1,044,734 1,114,853
Amounts payable for spot purchases of government securities  pending settlement 83,471 16,718
Amounts payable for spot purchases of other pending settlement 32,406
Other 1,580,391 1,907,645
26,234,910 24,013,447
Other non-financial liabilities 09/30/2020 12/31/2019
--- --- --- --- ---
Dividends to be paid (see note 34) 12,788,268
Salaries and payroll taxes payables 4,826,798 4,470,546
Withholdings 2,808,548 2,817,925
Taxes payables 1,714,358 2,317,724
Miscellaneous payables 924,535 1,157,777
Retirement pension payment orders pending settlement 275,525 406,053
Fees payables 145,593 580,952
Other 517,526 567,932
24,001,151 12,318,909
14. 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 September 30,<br>2020 and December 31, 2019:
---
09/30/2020 Without due date Total up to<br><br>12 months Total over <br><br>12 months
--- --- --- --- --- --- ---
Assets
Cash and deposits in banks 101,705,607
Debt securities at fair value through profit or loss 2,203 13,333,194 1,582,727
Derivative instruments 13,685
Repo transactions 54,703,042
Other financial assets 3,029,305 9,557,966 1,387,069
Loans and other financing (1) 655,818 164,960,097 72,299,564
Other debt securities 224,239,222 11,479,994
Financial assets delivered as guarantee 12,149,567
Investment in equity instruments 1,626,493
Total Assets 119,168,993 466,807,206 86,749,354

Delfín Jorge Ezequiel Carballo

Chairperson

101

NOTES TO THE CONDENSED SEPARATE INTERIMFINANCIAL STATEMENTS

AS OF SEPTEMBER 30, 2020

(Translation of Financial statements originally issued in Spanish – See Note 39)

(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of September 30, 2020, unless expressly stated)

09/30/2020 Without due date Total up to<br><br>12 months Total over <br><br>12 months
Liabilities
Deposits 205,907,879 274,948,654 32,947
Derivative instruments 381
Other financial liabilities 26,210,274 24,636
Financing received from the BCRA and other financial entities 628,737 58,978
Issued Corporate bonds 2,640,917 2,377,696
Subordinated corporate bonds 1,059,966 30,470,000
Total Liabilities 205,907,879 305,488,929 32,964,257
12/31/2019 Without due<br> <br>date Total up to <br><br>12 months Total over <br><br>12 months
--- --- --- --- --- --- ---
Assets
Cash and deposits in banks 119,105,966
Debt securities at fair value through profit or loss 1,035,224 5,279,509
Derivative instruments 61,982
Repo transactions 1,330,400
Other financial assets 2,979,155 1,650,135 1,466,099
Loans and other financing (1) 3,573,785 176,922,616 89,257,590
Other debt securities 77,077,359 811,789
Financial assets delivered as guarantee 11,717,918 1,317,151
Investment in equity instruments 1,878,534
Total Assets 139,255,358 259,394,867 96,814,987
Liabilities
Deposits 174,007,645 146,830,273 63,260
Derivative instruments 940,073
Repo transaction 1,225,960
Other financial liabilities 23,111,094 902,353
Financing received from the BCRA and other financial entities 2,518,672 227,503
Issued Corporate bonds 305,868 6,450,639
Subordinated corporate bonds 432,490 29,297,967
Total Liabilities 174,007,645 175,364,430 36,941,722
(1) The amounts included in “without due date”, are related to the non-performing portfolio.
--- ---
15. DISCLOSURES BY OPERATING SEGMENT
--- ---
The Bank<br> has an approach of its banking business that is described in note 15 to the condensed consolidated interim financial<br> statements.
---
16. INCOME TAX
--- ---
a) Inflation adjustment and tax rate on income tax
--- ---
In note 16 to the condensed consolidated interim financial statements are detailed the legal aspects of the inflation adjustment<br>on income tax and the corporate tax rate on tax rate.
---

Delfín Jorge Ezequiel Carballo

Chairperson

102

NOTES TO THE CONDENSED SEPARATE INTERIMFINANCIAL STATEMENTS

AS OF SEPTEMBER 30, 2020

(Translation of Financial statements originally issued in Spanish – See Note 39)

(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of September 30, 2020, unless expressly stated)

b) The main items of income tax expense in the condensed consolidated interim financial statements are as follows:
09/30/2020 09/30/2019
--- --- --- --- --- --- --- --- --- --- --- --- --- ---
Quarter<br> ended 09/30/2020 Accumulated<br> from beginning of year up to 09/30/2020 Quarter<br> ended 09/30/2019 Accumulated<br> from <br>beginning of year up to 09/30/2019
Current<br> loss tax expense 4,103,505 7,200,032 1,736,896 10,403,694
(Gain)<br> / Loss for deferred income tax (1,630,964 ) (*) 2,016,913 (*) (3,842,498 ) (2,493,991 )
Monetary<br> effects 568,278 1,003,197 1,196,658 2,276,031
Income<br> tax expense / (gain) recorded in the statement of income 3,040,819 10,220,142 (908,944 ) 10,185,734
Income<br> tax loss recorded in other comprehensive income 47,129 123,073 135,916 118,439
3,087,948 10,343,215 (773,028 ) 10,304,173
(*) Includes gain effects for the deferred income tax as explained point a) in note 16 to the condensed consolidated interim financial<br>statements.
---
c) As decided by the Board of Directors in the meeting dated May 11, 2020, considering certain<br>case-law on the subject assessed by its legal and tax advisors, on May 26, 2020, the Bank filed with the Administración<br>Federal de Ingresos Públicos (AFIP, for its acronym in Spanish) its annual income tax return considering the total effect<br>of the inflation adjustment on income tax (see section a) iv) of note 16 to the condensed consolidated interim financial statements).<br>As a result, the current income tax determined by the Bank for fiscal year 2019 amounted to 7,002,124 (not restated).
--- ---
In addition, on October 24, 2020 Banco Macro SA filed to AFIP-DGI two requests for the recovery of payments established by<br>the first paragraph of section 81 Law 11683, in order to obtain the return of the amounts 4,782,766 and 5,015,451 (not restated),<br>inappropriately paid to the tax authority as income tax for the fiscal years 2013 to 2017 and 2018, respectively, due to the impossibility<br>to apply the update mechanism and the inflation adjustment established by the Income Tax Law. For further information see note<br>16 point d) to the condensed consolidated interim financial statements.
---
17. COMMISSIONS INCOME
--- ---
09/30/2020 09/30/2019
--- --- --- --- --- --- --- --- ---
Description Quarter ended 09/30/2020 Accumulated from <br>beginning of year up to 09/30/2020 Quarter ended 09/30/2019 Accumulated from <br>beginning of year up to 09/30/2019
Performance obligations satisfied at a point in time
Commissions related to obligations 3,016,572 8,849,797 3,369,018 10,390,361
Commissions related to credit cards 1,938,703 5,624,639 1,870,390 5,403,259
Commissions related to insurance 359,740 1,070,273 331,356 1,094,296
Commissions related to trading and foreign exchange transactions 147,596 346,696 151,225 423,443
Commissions related to securities value 33,287 90,206 36,217 114,971
Commissions related to loans and other financing 27,689 135,437 65,184 160,010
Commissions related to financial guarantees granted 104 454 446 4,704

Delfín Jorge Ezequiel Carballo

Chairperson

103

NOTES TO THE CONDENSED SEPARATE INTERIMFINANCIAL STATEMENTS

AS OF SEPTEMBER 30, 2020

(Translation of Financial statements originally issued in Spanish – See Note 39)

(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of September 30, 2020, unless expressly stated)

09/30/2020 09/30/2020
Description<br> (contd.) Quarter<br> ended 09/30/2020 Accumulated<br><br><br> from <br>beginning of<br><br> year up to 09/30/2020 Quarter<br> ended 09/30/2019 Accumulated<br> from <br>beginning of year up to 09/30/2019
Performance<br> obligations satisfied over certain time period
Commissions<br> related to credit cards 78,729 242,148 65,311 211,166
Commissions<br> related to trading and foreign exchange transactions 14,704 31,822 14,867 23,006
Commissions<br> related to loans and other financing 187 589 3,046 12,997
Commissions<br> related to obligations 25 770 593 2,938
Commissions<br> related to financial guarantees granted 2,649 2,651
5,617,336 16,392,831 5,910,302 17,843,802
18. DIFFERENCE IN QUOTED PRICES OF GOLD AND FOREIGN CURRENCY
--- ---
09/30/2020 09/30/2019
--- --- --- --- --- --- --- --- --- ---
Description Quarter ended 09/30/2020 Accumulated from <br>beginning of year up to 09/30/2020 Quarter ended 09/30/2019 Accumulated from <br>beginning of year up to 09/30/2019
Translation of foreign currency assets and liabilities into pesos 704,617 1,862,456 402,867 (655,839 )
Income from foreign currency exchange 456,782 674,674 1,656,466 3,143,955
1,161,399 2,537,130 2,059,333 2,488,116
19. OTHER OPERATING INCOME
--- ---
09/30/2020 09/30/2019
--- --- --- --- --- --- --- --- --- --- ---
Description Quarter ended 09/30/2020 Accumulated from <br>beginning of year up to 09/30/2020 Quarter ended 09/30/2019 Accumulated from <br>beginning of year up to 09/30/2019
Services 516,954 1,625,897 542,696 1,376,169
Other receivables for financial intermediation 185,076 219,025
Adjustments and interest from other receivables 155,824 489,915 194,363 600,779
Adjustments from other receivables with CER clauses 31,574 110,727 39,558 128,990
Sale of property, plant and equipment 3,748 4,235
Derecognition or substantial modification of financial liabilities 2,878 206,333 364,093 469,217
Initial recognition of loans (11,919 ) 7,356 (11,381 ) 102,225
Sale of non-current assets held for sale (1) (60,735 ) 4,033,572
Other 125,195 480,020 299,902 1,024,180
1,009,330 3,143,508 1,368,496 7,735,132
(1) Mainly related to the sale of Prisma Medios de Pago SA, which was classified as non-current assets<br>held for sale when it was sold. See also note 11.
--- --- 
103

NOTES TO THE CONDENSED SEPARATE INTERIMFINANCIAL STATEMENTS

AS OF SEPTEMBER 30, 2020

(Translation of Financial statements originally issued in Spanish – See Note 39)

(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of September 30, 2020, unless expressly stated)

20. EMPLOYEE BENEFITS
09/30/2020 09/30/2019
--- --- --- --- --- --- --- --- ---
Description Quarter ended 09/30/2020 Accumulated from beginning of year up to 09/30/2020 Quarter ended 09/30/2019 Accumulated from <br>beginning of year up to 09/30/2019
Remunerations 4,558,789 13,081,907 4,495,461 13,198,263
Payroll taxes 1,011,072 2,897,189 950,923 4,178,568
Compensations and bonuses to employees 387,672 1,120,340 685,096 1,560,283
Employee services 146,309 361,512 161,948 429,608
6,103,842 17,460,948 6,293,428 19,366,722
21. ADMINISTRATIVE EXPENSES
--- ---
09/30/2020 09/30/2019
--- --- --- --- --- --- --- --- ---
Description Quarter<br> ended 09/30/2020 Accumulated<br> from beginning of year up to 09/30/2020 Quarter<br> ended 09/30/2019 Accumulated<br> from <br>beginning of year up to 09/30/2019
Maintenance,<br> conservation and repair expenses 503,309 1,448,213 476,667 1,459,782
Armored<br> truck, documentation and events 480,844 1,356,626 669,350 1,498,854
Taxes 399,366 1,208,907 451,709 1,379,770
Electricity<br> and communications 340,521 1,044,769 346,975 1,081,596
Security<br> services 309,627 965,584 363,415 1,084,003
Fees<br> to directors and syndics 255,087 887,855 781,118 1,788,701
Software 242,724 716,571 245,394 759,278
Other<br> fees 196,503 579,399 301,797 880,879
Advertising<br> and publicity 73,952 227,252 148,590 382,587
Insurance 42,040 110,121 38,082 108,287
Representation,<br> travel and transportation expenses 21,947 77,110 54,285 161,764
Stationery<br> and office supplies 21,202 62,792 38,059 98,816
Leases 9,382 64,106 56,413 220,408
Hired<br> administrative services 1,658 2,913 2,757 4,838
Other 463,434 683,177 130,647 412,855
3,361,596 9,435,395 4,105,258 11,322,418
22. OTHER OPERATING EXPENSES
--- ---
09/30/2020 09/30/2019
--- --- --- --- --- --- --- --- ---
Description Quarter<br> ended 09/30/2020 Accumulated<br> from beginning of year up to 09/30/2020 Quarter<br> ended 09/30/2019 Accumulated<br> from <br>beginning of year up to 09/30/2019
Turnover<br> tax 2,476,905 7,730,755 3,024,198 9,146,436
For<br> credit cards 1,118,556 3,084,985 1,218,338 3,407,927
Charges<br> for other provisions 261,948 813,414 659,216 1,361,607
Deposit<br> guarantee fund contributions 184,269 475,776 194,058 563,299
Taxes 121,265 389,721 204,984 1,333,298 
104

NOTES TO THE CONDENSED SEPARATE INTERIMFINANCIAL STATEMENTS

AS OF SEPTEMBER 30, 2020

(Translation of Financial statements originally issued in Spanish – See Note 39)

(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of September 30, 2020, unless expressly stated)

09/30/2020 09/30/2019
Description (contd.) Quarter ended 09/30/2020 Accumulated from beginning of year up to 09/30/2020 Quarter ended 09/30/2019 Accumulated from <br>beginning of year up to 09/30/2019
Interest on lease liabilities 39,124 123,778 37,729 99,989
Insurance claims 12,779 46,980 19,187 53,933
Cost of onerous contracts 1,215 3,270
Donations 335 147,074 52,253 171,817
Loss from sale or impairment of investments in properties and other non-financial assets 2,444 2,444 6,047 148,157
For modification of financial assets (note 10) 3,505,087 3,505,087
For administrative, disciplinary and criminal penalties 82
Other 339,240 1,000,303 407,798 1,313,355
4,558,080 13,818,500 9,328,895 21,104,987
23. 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 activities of the Bank as well as other activities<br>that cannot qualify as investing or financing activities.
- Investing activities: the acquisition, sale and disposal by other means of long-term assets and<br>other investments not included in cash and cash equivalents.
--- ---
- Financing activities: activities that result in changes in the size and composition of the shareholders´<br>equity and liabilities 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:

09/30/2020 12/31/2019 09/30/2019 12/31/2018
Cash and deposit in banks 101,705,607 119,105,966 129,277,998 138,795,745
Other debt securities 126,434,672 56,169,868 75,001,850 103,597,456
228,140,279 175,275,834 204,279,848 242,393,201
24. CAPITAL STOCK
--- ---

Note 24 to the condensed consolidated interim financial statements presents the changes in the Bank’s capital stock.

25. DEPOSIT GUARANTEE INSURANCE

Note 26 to the condensed consolidated interim financial statements describes the Deposit Guarantee Insurance System and the scope thereof.

Banco Macro SA holds an 8.9440% interest in the capital stock according to the percentages disclosed by BCRA Communiqué “B” 11959 issued on February 27, 2020.

105

NOTES TO THE CONDENSED SEPARATE INTERIMFINANCIAL STATEMENTS

AS OF SEPTEMBER 30, 2020

(Translation of Financial statements originally issued in Spanish – See Note 39)

(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of September 30, 2020, unless expressly stated)

26. RESTRICTED ASSETS

As of September 30, 2020 and December 31, 2019 the following Bank’s assets are restricted:

Item 09/30/2020 12/31/2019
Debt securities at fair value through profit or loss and other debt securities
· Discount bonds in pesos regulated by Argentine legislation, maturing 2033 used as security in favor of Sedesa (1). 126,889 117,842
· Federal Government Treasury Bonds in pesos adjusted by CER 1%, maturing 2021 as of September 30, 2020 and Discount bonds in pesos regulated by Argentine legislation, maturing 2033 as of December 31, 2019, securing the sectorial Credit Program of the Province of San Juan. Production investment financing fund. 54,970 184,542
· Federal Government Treasury Bonds in pesos adjusted by CER 1%, maturing 2021 as of September 30, 2020 and Discount bonds in pesos regulated by Argentine legislation, maturing 2033, as of securing the regional economies Competitiveness Program – IDB loan No. 3174/OC-AR. 35,372 143,484
· Discount bonds in pesos regulated by Argentine legislation, maturing 2033 for minimum statutory guarantee account required for Agents to act in the new categories contemplated under Resolution No. 622/2013, as amended, of the CNV 28,526 26,493
· Federal Government Treasury Bonds in pesos adjusted by CER 1%, maturing 2021 for the guarantee fund contribution in BYMA according to section 45 Law 26831 and supplementary regulations established by CNV standards (NT 2013, as amended) 2,868
· Federal Government Treasury Bonds in pesos adjusted by CER 1%, maturing 2021 as of September 30, 2020 and Discount bonds in pesos regulated by Argentine legislation, maturing 2033 securing a IDB loan of Province of San Juan No. 2763/OC-AR. 275 4,200
Subtotal debt securities at fair value through profit or loss and other debt securities 248,900 476,561
Other financial assets
· Sundry debtors – attachment within the scope of the claim filed by the DGR against the City of Buenos Aires for differences in turnover tax 827 1,011
Subtotal other financial assets 827 1,011
Loans and other financing – non-financial private sector and foreign residents
· Interests derived from contributions made as contributing partner (2) 159,149
Subtotal loans and other financing 159,149
Financial assets delivered as guarantee
· Special guarantee checking accounts opened in BCRA for transactions related to the electronic clearing houses and similar entities. 10,929,389 9,096,636
· Guarantee deposits related to credit and debit card transactions 1,074,898 986,398
· Other guarantee deposits 145,280 1,634,883
· Forward purchase for repo transactions 1,317,152
Subtotal Other financial assets delivered as guarantee 12,149,567 13,035,069
Other non-financial assets
· Real property related to call options sold 239,273 392,221
Subtotal Other non-financial assets 239,273 392,221
Total 12,797,716 13,904,862 
106

NOTES TO THE CONDENSED SEPARATE INTERIMFINANCIAL STATEMENTS

AS OF SEPTEMBER 30, 2020

(Translation of Financial statements originally issued in Spanish – See Note 39)

(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of September 30, 2020, unless expressly stated)

(1) As replacement for the preferred shares of former Nuevo Banco Bisel SA to secure to Sedesa the<br>price payment and the fulfillment of all the obligations assumed in the purchase and sale agreement dated May 28, 2007, maturing<br>on August 11, 2021.
(2) As of September 30, 2020 it is related to the risk fund Fintech SGR. In order to keep tax<br>benefits related to these contributions, they must be maintained between two and three years from the date they were made. On November 4<br>and 16, 2020 two contributions to the risk funds were made for 40,000 and 40,841, respectively.
--- ---

In addition, on November 9, 2020 the Bank paid 12,638 for a call which gives right to increase up to 24.99% the Bank’s interest in the capital stock of Fintech SGR.

27. TRUST ACTIVITIES

Note 28 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:

27.1 Financial trusts for investment purposes

As of September 30, 2020 and December 31, 2019 the debt securities with investment purposes and certificate of participation in financial trusts total 363,674 and 2,368,711, 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.

27.2 Trusts created using financial assets transferred by the Bank (Securitization)

As of September 30, 2020 and December 31, 2019, considering the latest available accounting information as of the date of these condensed separate interim financial statements, the assets managed through Macro Fiducia SA of this type of trusts amount to 6,641 and 11,194, respectively.

27.3 Trusts guaranteeing loans granted by the Bank

As of September 30, 2020 and December 31, 2019, considering the latest available accounting information as of the date of these condensed separate interim financial statements, the assets managed by the Bank amount to 1,134,744 and 1,255,115, respectively.

27.4 Trusts in which the Bank acts as Trustee (Management)

As of September 30, 2020 and December 31, 2019, considering the latest available accounting information as of the date of these condensed separate interim financial statements, the assets managed by the Bank amount to 2,339,900 and 2,377,187, respectively.

28. 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) – Depositary Company, comprehensive clearing and settlement agent and trading agent (ALyC and AN – comprehensive, for their acronyms in Spanish), financial trustee Agent (FF, for its acronym in Spanish) and Guarantee Entity (in the process of being registered). Note 29.3 to the condensed consolidated interim financial statements describes the number of shares subscribed by third parties and the assets held by the Bank in its capacity as depositary company.

107

NOTES TO THE CONDENSED SEPARATE INTERIMFINANCIAL STATEMENTS

AS OF SEPTEMBER 30, 2020

(Translation of Financial statements originally issued in Spanish – See Note 39)

(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of September 30, 2020, unless expressly stated)

Additionally, the Bank’s shareholders’ equity as of September 30, 2020 stated in Unit of Purchasing Power (UVA, for its acronym in Spanish) amounted to 2,288,487,731 and exceeds the minimum amount required by this regulation as of that date, for the different categories of agents in which the Bank is registered, amounting to 1,420,350 UVAs, and the minimum statutory guarantee account required of 710,175 UVA, which the Bank paid-in with government securities as described in note 26 and with cash deposits in BCRA accounts 00285 and 80285 belogning to the Bank.

In addition, note 29.2 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.

29. ACCOUNTING ITEMS THAT IDENTIFY THE COMPLIANCE WITH MINIMUM CASH REQUIREMENTS

The items recognized by the Bank to constitute the minimum cash requirement effective for September 2020 are described in note 30 to the condensed consolidated interim financial statements.

30. PENALTIES APPLIED TO THE FINANCIAL ENTITY AND SUMMARY PROCEEDINGS INITIATED BY THE BCRA

Note 31 to the condensed consolidated interim financial statements describes the penalties applied and the proceedings filed by the BCRA against the Bank, classified as follows:

- Summary proceedings filed by the BCRA.
- Penalties applied by the BCRA.
--- ---
- Penalties applied by the UIF.
--- ---

The Bank’s Management and its legal counsel consider no further significant accounting effects, other than those previous mentioned, should be recorded or disclosed.

31. ISSUANCE OF CORPORATE BONDS

Note 32 to the condensed consolidated interim financial statements describes liabilities for corporate bonds recognized by the Bank as September 30, 2020 and December 31, 2019, under the terms and values therein expressed.

32. OFF BALANCE SHEET TRANSACTIONS

In addition to note 4, the Bank recognizes different off balance sheet transactions, pursuant to the BCRA standards. Below are the amounts of the main off balance sheet transactions as of September 30, 2020 and December 31, 2019:

Item 09/30/2020 12/31/2019
Custody of government and private securities and other assets held by third parties 133,782,305 83,465,878
Preferred and other collaterals received from customers (1) 82,855,922 67,919,926
Outstanding checks not yet paid 6,999,441 9,808,816
Checks already deposited and pending clearance 3,442,691 3,689,510
(1) Related to collaterals used to secure loans transactions and other financing, under the applicable rules in force in this<br>matter.
--- --- 
108

NOTES TO THE CONDENSED SEPARATE INTERIMFINANCIAL STATEMENTS

AS OF SEPTEMBER 30, 2020

(Translation of Financial statements originally issued in Spanish – See Note 39)

(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of September 30, 2020, unless expressly stated)

33. TAX AND OTHER CLAIMS

33.1. Tax claims

Note 34.1 to the condensed consolidated interim financial statements describes the most relevant claims pending resolution and filed by Federal Public Revenue Agency (AFIP, for its acronym in Spanish) and the tax authorities of the relevant jurisdiction.

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.

33.2. Other claims

Note 34.2. to the condensed consolidated interim financial statements describes the most relevant claims pending resolution and filed by the different consumer´s 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.

34. RESTRICTION ON DIVIDENDS DISTRIBUTION

Note 35 to the condensed consolidated interim financial statements describes the main legal provisions regulating the restriction on profit distribution.

35. CAPITAL MANAGEMENT, CORPORATE GOVERNANCE TRANSPARENCY POLICY AND RISK MANAGEMENT

Note 36 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.

36. CHANGES IN THE ARGENTINE MACROECONOMIC ENVIRONMENT OF THE FINANCIAL AND CAPITAL MARKET

The international and domestic macroeconomics environments in which the Bank operates, and its impacts are described in note 38 to the condensed consolidated interim financial statements.

37. EFFECTS OF THE CORONAVIRUS (COVID-19) OUTBREAK

In early March 2020, the World Health Organization recognized Coronavirus (Covid-19) as a pandemic. This emergency situation over public health was worldwide expanded and several countries have taken different measures to contain the effects. This situation and the measures adopted have materially affected the international economy activity with different impacts on several countries and business lines and are detailed in note 39 to the condensed consolidated interim financial statements.

38. EVENTS AFTER REPORTING PERIOD

No other significant events occurred between the end of the reporting period and the issuance of these condensed separate interim financial statements that may materially affect the financial position or the profit and loss for the period, not disclosed in these condensed separate interim financial statements.

39. 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 mention in note 3. These accounting standards may not conform with accounting principles generally accepted in other countries.

Delfín Jorge Ezequiel Carballo

Chairperson

109

EXHIBIT A

DETAIL OF GOVERNMENT AND PRIVATE SECURITIES AS OF SEPTEMBER 30, 2020 AND DECEMBER 31, 2019 (Translation of the Financial statements originally issued in Spanish – See Note 39) (Figures stated in thousands of pesos in terms of purchasing power of pesos as of September 30, 2020, except that indicated otherwise)

**** Holdings Position
09/30/2020 12/31/2019 09/30/2020
Fair Position
Fair value Book Book without Final
Name Identification Value level amounts amounts options Options position
DEBT SECURITIES AT<br> FAIR VALUE THROUGH PROFIT OR LOSS
-  Local
Government<br> securities
Federal<br> government treasury bonds in pesos adjustment by CER - Maturity: 07-22-2021 5315 1 6,610,842 4,797,765 7,227,621 7,227,621
Federal<br> government treasury bonds in pesos adjustment by CER - Maturity: 08-05-2021 5359 1 6,432,638 6,758,942 6,758,942
Federal<br> government treasury bonds in pesos adjustment by CER - Maturity: 03-25-2023 5492 1 597,962 597,962 597,962
Federal<br> government  bonds in pesos -Private Badlar + 200 PBS- Maturity: 04-03-2022 5480 1 446,968 2,961 446,968 446,968
Federal<br> government treasury bonds in pesos adjustment by CER - Maturity: 11-09-2026 5925 1 215,284 215,284 215,284
Federal<br> government treasury  bonds in pesos  adjustment by CER- Maturity: 03-25-2024 5493 1 168,031 168,031 168,031
Federal<br> government treasury bonds in pesos adjustment by CER - Maturity: 04-17-2021 5494 1 139,933 139,933 139,933
Federal<br> government treasury  bonds in pesos  adjustment by CER- Maturity: 03-18-2022 5491 1 83,004 83,004 83,004
Consolidation<br> bonds in pesos  6° Serie at 2%- Maturity: 03-15-2024 2420 1 79,615 87,175 79,615 79,615
Federal<br> government  bonds in pesos -Private Badlar + 100 PBS- Maturity: 08-05-2021 5360 1 53,977 53,977 53,977
Other 14,828 430,105 14,828 14,828
Subtotal<br> local government securities 14,843,082 5,318,006 15,786,165 15,786,165
Private<br> securities
Debt<br> Securities in Financial Trusts Surcos 3 64,661 128,780 64,661 64,661
Debt<br> Securities in Financial Trusts Secubono Series 191  Class C - Maturity: 08-28-2020 (1) 54377 3 6,139 5,898 6,139 6,139
Values<br> of business of services public 3 2,203 2,130 2,203 2,203
Debt<br> Securities in Financial Trusts Secubono Series 191  Class B - Maturity: 07-28-2020 (1) 54376 3 2,039 14,750 2,039 2,039
Debt<br> Securities in Financial Trusts Consubond 433,291
Debt<br> Securities in Financial Trusts Agrocap 115,957
Debt<br> Securities in Financial Trusts Secubono Series 191  Class B - Maturity: 06-29-2020 54375 103,137
Debt<br> Securities in Financial Trusts Secubono 83,488
Debt<br> Securities in Financial Trusts Chubut Regalías Hidrocarburíferas - Maturity: 07-01-2020 36425 36,923
Debt<br> Securities in Financial Trusts Secubono S189 A - Maturity: 03-30-2020 54228 27,146
Other 45,227
Subtotal<br> local private securities 75,042 996,727 75,042 75,042
TOTAL<br> DEBT SECURITIES AT FAIR VALUE THROUGH PROFIT OR LOSS 14,918,124 6,314,733 15,861,207 15,861,207

(1) The date exposed related to the reported at the emission brochure.

Delfín Jorge Ezequiel Carballo

Chairperson

110

EXHIBIT A (continued)

DETAIL OF GOVERNMENT AND PRIVATE SECURITIES AS OF SEPTEMBER 30, 2020 AND DECEMBER 31, 2019 (Translation of the Financial statements originally issued in Spanish – See Note 39) (Figures stated in thousands of pesos in terms of purchasing power of pesos as of September 30, 2020, except that indicated otherwise)

Holdings Position
09/30/2020 12/31/2019 09/30/2020
Fair Position
Fair value Book Book without Final
Name Identification Value level amounts amounts options Options position
OTHER  DEBT<br> SECURITIES
Measured<br> at fair value through other comprehensive income
-  Local
Government securities
National treasury bills<br> at discount in pesos - Maturity: 01-29-2021 5381 1 23,567,841 23,567,841 23,567,841
Federal government treasury<br> bonds in pesos BADLAR + 100 PB - Maturity: 08-05-2021 5360 1 19,090,830 19,090,830 19,090,830
Federal government treasury<br> bonds in pesos adjustment by CER - Maturity: 04-17-2021 5494 1 15,714,041 15,714,041 15,714,041
National treasury bills<br> at discount in pesos - Maturity: 02-26-2021 5385 1 13,125,000 13,125,000 13,125,000
Federal government treasury<br> bonds in pesos adjustment by CER - Maturity: 07-22-2021 5315 1 8,036,342 8,036,342 8,036,342
Federal government treasury<br> bonds in pesos adjustment by CER - Maturity: 08-05-2021 5359 1 3,072,837 3,072,837 3,072,837
National treasury bills<br> at discount in pesos - Maturity: 12-30-2020 5380 1 3,026,328 3,026,328 3,026,328
Federal government treasury<br> bonds in pesos adjustment by CER - Maturity: 03-25-2023 5492 1 945,582 945,582 945,582
Federal government treasury<br> bonds in pesos adjustment by CER - Maturity: 03-25-2024 5493 1 823,085 823,085 823,085
Treasury bills of Province<br> of Neuquén S. 1 C. 1 - Maturity: 04-07-2021 42263 2 285,062 285,062 285,062
Other 70,850 102,545 70,850 70,850
Subtotal local government<br> securities 87,757,798 102,545 87,757,798 87,757,798
Central Bank of Argentina<br> Bills
Liquidity letters of Central<br> Bank of Argentina in pesos - Maturity: 10-27-2020 2 28,699,144 28,699,144 28,699,144
Liquidity letters of Central<br> Bank of Argentina in pesos - Maturity: 10-13-2020 2 22,732,486 22,732,486 22,732,486
Liquidity letters of Central<br> Bank of Argentina in pesos - Maturity: 10-20-2020 2 21,441,925 21,441,925 21,441,925
Liquidity letters of Central<br> Bank of Argentina in pesos - Maturity: 10-06-2020 2 16,894,464 16,894,464 16,894,464
Liquidity letters of Central<br> Bank of Argentina in pesos - Maturity: 10-22-2020 2 11,254,214 11,254,214 11,254,214
Liquidity letters of Central<br> Bank of Argentina in pesos - Maturity: 10-08-2020 2 9,932,645 9,932,645 9,932,645
Liquidity letters of Central<br> Bank of Argentina in pesos - Maturity: 10-15-2020 2 8,383,507 8,383,507 8,383,507
Liquidity letters of Central<br> Bank of Argentina in pesos - Maturity: 10-01-2020 2 7,096,287 7,096,287 7,096,287
Liquidity letters of Central<br> Bank of Argentina in pesos - Maturity: 01-03-2020 18,077,211
Liquidity letters of Central<br> Bank of Argentina in pesos - Maturity: 01-07-2020 13,828,561
Other 24,264,096
Subtotal Central<br> Bank of Argentina Bills 126,434,672 56,169,868 126,434,672 126,434,672
Total<br> Other debt securities measured at fair value though  other comprehensive income 214,192,470 56,272,413 214,192,470 214,192,470
Measured at amortized<br> cost
-  Local
Government securities
Federal government bonds<br> in pesos - Fixed rate 26%  - Maturity: 11-21-2020 5330 10,839,983 2 10,933,488 9,751,305 10,933,488 10,933,488
Federal government bonds<br> in pesos 22%  - Maturity: 05-21-2022 5496 8,765,200 2 9,174,821 9,174,821 9,174,821
Discount bonds denominated<br> in pesos at 5.83% - Maturity: 12-31-2033 45696 504,553 1 304,431 393,068 304,431 304,431
Federal government treasury<br> bonds adjustment by CER - Maturity: 03-18-2022 5491 53,942 1 50,302 50,302 50,302
Bonds Par denominated<br> in Pesos - Maturity 12-31-2038 45695 77,500 1 26,224 28,282 26,224 26,224
National treasury bills<br> coupon capitalized in pesos - Maturity: 02-26-2020 5349 1,836,994
National treasury bills<br> capitalized in pesos - Maturity: 05-13-2020 5343 1,758,387
National treasury bills<br> capitalized in pesos - Maturity: 08-29-2020 5341 1,494,600
National treasury bills<br> coupon capitalized in pesos - Maturity: 03-11-2020 5351 1,080,168
National treasury bills<br> capitalized in pesos - Maturity: 10-31-2019 5269 957,780
Other 997,790
Subtotal local government<br> securities 20,489,266 18,298,374 20,489,266 20,489,266
Private securities
Corporate Bonds Pan American<br> Energy LLC. C012 -Maturity: 11-19-2020 54723 124,574 2 123,120 123,120 123,120
Corporate Bonds HSBC Bank<br> Argentina SA C007 -Maturity: 12-17-2020 53068 132,917 2 114,244 80,870 114,244 114,244
Corporate Bonds YPF C043-Maturity:<br> 10-21-2023 50939 112,675 2 87,513 90,129 87,513 87,513
Corporate Bonds YPF C046-Maturity:<br> 03-04-2023 51308 109,033 2 70,607 72,055 70,607 70,607
Corporate Bonds Tecteprol<br> S.A. C003-Maturity: 02-20-2021 54629 50,221 2 49,053 49,053 49,053
Corporate Bonds Pan American<br> Energy LLC. C007 -Maturity: 11-20-2020 51035 51,442 2 46,802 28,707 46,802 46,802
Corporate Bonds Albanessi<br> S.A. CL003-Maturity: 06-15-2021 52559 58,554 2 40,185 34,534 40,185 40,185
Debt Securities in Financial<br> Trusts  Secubono S198 CLA - Maturity: 03-01-2020 54692 41,389 3 37,365 37,365 37,365
Debt Securities in Financial<br> Trusts  Secubono S199 CLA - Maturity: 03-01-2020 54760 39,220 3 36,832 36,832 36,832
Debt Securities in Financial<br> Trusts  Secubono S197 CLA - Maturity: 12-28-2020 54645 44,248 3 35,949 35,949 35,949
Other 395,810 3,012,066 395,810 395,810
Subtotal local private<br> securities 1,037,480 3,318,361 1,037,480 1,037,480
Total<br> Other debt securities measured at cost amortized 21,526,746 21,616,735 21,526,746 21,526,746
TOTAL<br> OTHER DEBT SECURITIES 235,719,216 77,889,148 235,719,216 235,719,216

Delfín Jorge Ezequiel Carballo

Chairperson

111

EXHIBIT A

(continued)

DETAIL OF GOVERNMENT AND PRIVATE SECURITIES AS OF SEPTEMBER 30, 2020 AND DECEMBER 31, 2019 (Translation of the Financial statements originally issued in Spanish – See Note 39)

(Figures stated in thousands of pesos in terms of purchasing power of pesos as of September 30, 2020, except that indicated otherwise)

Holdings Position
09/30/2020 12/31/2019 09/30/2020
Fair Position
Fair value Book Book without Final
Name Identification Value level amounts amounts options Options position
Equity Instruments
Measured at fair<br> value through profit or loss
-  Local
Prisma Medios de Pago<br> SA 3 1,420,695 1,737,352 1,420,695 1,420,695
Mercado Abierto Electrónico<br> SA 3 127,959 63,534 127,959 127,959
C.O.E.L.S.A 3 19,511 11,746 19,511 19,511
Matba Rofex SA 3 14,246 14,123 14,246 14,246
Sedesa 3 11,682 8,526 11,682 11,682
Argentina Clearing y Resgistro<br> SA 3 10,331 12,771 10,331 10,331
AC Inversora SA 3 4,439 4,439 4,439
Mercado a Término<br> Rosario SA 3 3,477 11,237 3,477 3,477
Provincanje SA 3 2,435 2,978 2,435 2,435
Proin SA 3 1,960 1,807 1,960 1,960
Other 1,279 1,473 1,279 1,279
Subtotal local 1,618,014 1,865,547 1,618,014 1,618,014
-  Foreign
Banco Latinoamericano<br> de Comercio Exterior SA 1 6,760 11,435 6,760 6,760
Sociedad<br> de Telecomunicaciones Financieras Interbancarias Mundiales 3 1,719 1,552 1,719 1,719
Subtotal foreign 8,479 12,987 8,479 8,479
Total<br> measured at fair value through profit or loss 1,626,493 1,878,534 1,626,493 1,626,493
TOTAL<br> EQUITY INSTRUMENTS 1,626,493 1,878,534 1,626,493 1,626,493
TOTAL<br> GOVERNMENT AND PRIVATE SECURITIES 252,263,833 86,082,415 253,206,916 253,206,916

Delfín Jorge Ezequiel Carballo

Chairperson

112

EXHIBIT B

CLASSIFICATIONOF LOANS AND OTHER FINANCING BY SITUATION AND COLLATERAL RECEIVED AS OF SEPTEMBER 30, 2020 AND DECEMBER 31, 2019

(Translation of the Financial statements originally issued in Spanish – See Note 39) (Figures stated in thousands of pesos in terms of purchasing power of pesos as of September 30, 2020, except that indicated otherwise)

09/30/2020 12/31/2019
COMMERCIAL
In normal situation 73,701,487 124,931,000
With senior “A” collateral and counter-collateral 2,947,491 4,108,622
With senior “B” collateral and counter-collateral 10,425,742 13,435,381
Without senior collateral or counter-collateral 60,328,254 107,386,997
Subject to special monitoring 1,393,373 314,800
In observation
With senior “A” collateral and counter-collateral 338
With senior “B” collateral and counter-collateral 138,515
Without senior collateral or counter-collateral 997,429 629
In negotiation or with financing agreements
With senior “B” collateral and counter-collateral 123,192 118,454
Without senior collateral or counter-collateral 133,899 195,717
Troubled 179,789 86,602
With senior “A” collateral and counter-collateral 48,069
With senior “B” collateral and counter-collateral 131,588 12,840
Without senior collateral or counter-collateral 132 73,762
With high risk of insolvency 705,398 1,606,372
With senior “A” collateral and counter-collateral 10,604
With senior “B” collateral and counter-collateral 70,828 377,639
Without senior collateral or counter-collateral 634,570 1,218,129
Irrecoverable 295,132 6,928
With senior “A” collateral and counter-collateral 509
With senior “B” collateral and counter-collateral 255,567
Without senior collateral or counter-collateral 39,565 6,419
Subtotal Commercial 76,275,179 126,945,702

Delfín Jorge Ezequiel Carballo

Chairperson

113

EXHIBIT B(continued)

CLASSIFICATION OF LOANS AND OTHER FINANCING BY SITUATION AND COLLATERAL RECEIVED AS OF SEPTIEMBRE 30, 2020 AND DECEMBER 31, 2019 (Translation of the Financial statements originally issued in Spanish – See Note 39) (Figures stated in thousands of pesos in terms of purchasing power of pesos as of September 30, 2020, except that indicated otherwise)

09/30/2020 12/31/2019
CONSUMER AND MORTGAGE
Performing 171,653,040 149,689,365
With senior “A” collateral and counter-collateral 17,632,616 2,926,665
With senior “B” collateral and counter-collateral 16,611,588 17,461,291
Without senior collateral or counter-collateral 137,408,836 129,301,409
Low risk 367,639 2,021,185
With senior “A” collateral and counter-collateral 5,163 20,399
With senior “B” collateral and counter-collateral 40,328 222,366
Without senior collateral or counter-collateral 322,148 1,778,420
Low risk - in special treatment 13,466
Without senior collateral or counter-collateral 13,466
Medium risk 350,548 1,709,062
With senior “A” collateral and counter-collateral 5,461 16,304
With senior “B” collateral and counter-collateral 45,738 158,967
Without senior collateral or counter-collateral 299,349 1,533,791
High risk 627,810 1,932,697
With senior “A” collateral and counter-collateral 18,357 32,808
With senior “B” collateral and counter-collateral 92,961 161,972
Without senior collateral or counter-collateral 516,492 1,737,917
Irrecoverable 688,481 528,616
With senior “A” collateral and counter-collateral 8,638 11,412
With senior “B” collateral and counter-collateral 224,424 174,828
Without senior collateral or counter-collateral 455,419 342,376
Subtotal consumer and mortgage 173,700,984 155,880,925
Total 249,976,163 282,826,627
This exhibit discloses the contractual figures as established by the BCRA. The conciliation with the consolidated statement of financial position is listed below:
At 09/30/2020 At 12/31/2019
Loans and other financing 237,915,479 269,753,991
+ Allowances for loans and other financing 8,588,639 6,194,058
+ Adjustment IFRS (Adjustment amortized cost and fair value) 68,960 139,172
+ Debt securities of financial trust - Measured at amortized cost 242,975 1,345,987
+ Corporate bonds 797,909 1,974,743
- Interest and other accrued items receivable from financial assets with impaired credit value (97,036 ) (66,493 )
Guarantees provided and contingent liabilities 2,459,237 3,485,169
Total computable items 249,976,163 282,826,627

Delfín Jorge Ezequiel Carballo

Chairperson

114

EXHIBIT C

CONCENTRATIONOF LOANS AND FINANCING FACILITIES AS OF SEPTEMBER 30, 2020 AND DECEMBER 31, 2019 (Translation of the Financial statements originally issued in Spanish – See Note 39) (Figures stated in thousands of pesos in terms of purchasing power of pesos as of September 30, 2020, except that indicated otherwise)

09/30/2020 12/31/2019
Number of customers Cut off<br><br> balance % of<br><br> total<br><br> portfolio Cut off<br><br> balance % of <br><br>total<br><br> portfolio
10 largest customers 30,771,020 12.31 46,438,931 16.42
50 next largest customers 23,992,268 9.60 43,596,695 15.41
100 next largest customers 13,085,737 5.23 18,885,071 6.68
Other customers 182,127,138 72.86 173,905,930 61.49
Total (1) 249,976,163 100.00 282,826,627 100.00

(1) See reconciliation in Exhibit B

Delfín Jorge Ezequiel Carballo

Chairperson

115

EXHIBIT D

BREAKDOWN OF LOANS AND OTHER FINANCING BY TERMS AS OF SEPTEMBER 30, 2020 (Translation of the Financial statements originally issued in Spanish – See Note 39) (Figures stated in thousands of pesos in terms of purchasing power of pesos as of September 30, 2020, except that indicated otherwise)

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 278,509 679,945 724,847 1,338,391 1,974,335 1,500,812 6,496,839
Financial sector 199,855 204,056 171,846 1,089,598 1,006,089 1,297 2,672,741
Non-financial private<br> sector and foreign residents 1,936,331 80,253,555 30,476,525 34,674,560 54,778,216 42,301,304 68,805,431 313,225,922
Total 1,936,331 80,731,919 31,360,526 35,571,253 57,206,205 45,281,728 70,307,540 322,395,502

BREAKDOWN OF LOANS AND OTHER FINANCING BY TERMS AS OF DECEMBER 31, 2019 (Translation of the Financial statements originally issued in Spanish – See Note 39) (Figures stated in thousands of pesos in terms of purchasing power of pesos as of September 30, 2020, except that indicated otherwise)

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 3,344,059 791,296 934,667 2,246,660 3,702,545 2,471,287 13,490,514
Financial sector 2,244,407 2,698,446 576,980 772,139 1,092,035 6,686 7,390,693
Non-financial<br> private sector and foreign residents 4,413,926 110,912,461 32,667,546 29,649,277 37,035,088 53,409,957 82,402,251 350,490,506
Total 4,413,926 116,500,927 36,157,288 31,160,924 40,053,887 58,204,537 84,880,224 371,371,713
This exhibit disclosures contractual future cash flows that include interests and accessories to be accrued until maturity of the contracts.
---

Delfín Jorge Ezequiel Carballo

Chairperson

116
EXHIBIT F
CHANGE OF PROPERTY, PLANT AND EQUIPMENT
AS OF SEPTEMBER 30, 2020
(Translation of the Financial statements originally issued in Spanish – See Note 39)
(Figures stated in thousands of pesos in terms of purchasing power of pesos as of September 30, 2020, except that indicated otherwise)
Depreciation for the period
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Item Original <br><br>value at<br><br> beginning<br> <br><br>of fiscal <br><br>year Total life<br><br> estimated <br><br>in<br> years Increases Decreases Accumulated Decrease Of<br> the <br><br>period At<br> the end Residual <br><br>value at <br><br>the end<br> of <br><br>the period
Cost
Real<br> property 26,787,704 50 392,002 28 1,697,701 27 413,268 2,110,942 25,068,736
Furniture<br> and facilities 3,248,176 10 210,579 574 1,247,108 30 244,109 1,491,187 1,966,994
Machinery<br> and equipment 4,355,905 5 391,221 65 2,313,211 17 584,346 2,897,540 1,849,521
Vehicles 731,608 5 51,158 49,067 603,307 44,942 47,588 605,953 127,746
Work<br> in progress 1,068,218 246,433 485,843 828,808
Right<br> of use 1,481,038 5 325,977 92,752 362,044 22,755 345,848 685,137 1,029,126
Total<br> property, plant and equipment (1) 37,672,649 1,617,370 628,329 6,223,371 67,771 1,635,159 7,790,759 30,870,931
CHANGE OF PROPERTY, PLANT AND EQUIPMENT
---
AS OF DECEMBER 31, 2019
(Translation of the Financial statements originally issued in Spanish – See Note 39)
(Figures stated in thousands of pesos in terms of purchasing power of pesos as of September 30, 2020, except that indicated otherwise)
Depreciation for the period
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Item Original <br> value at<br> beginning <br> of fiscal<br> year Total life<br> estimated <br> in years Increases Decreases Accumulated Decrease Of the <br> period At the end Residual <br> value at <br> the end of <br> the fiscal<br> year
Cost
Real property 24,810,352 50 2,113,253 135,901 1,324,754 106,339 479,286 1,697,701 25,090,003
Furniture and facilities 3,028,852 10 650,104 430,780 1,402,497 428,723 273,334 1,247,108 2,001,068
Machinery and equipment 6,860,087 5 769,394 3,273,576 4,739,104 3,270,014 844,121 2,313,211 2,042,694
Vehicles 724,160 5 118,525 111,077 590,067 56,955 70,195 603,307 128,301
Work in progress 1,838,008 1,777,994 2,547,784 0 0 0 0 1,068,218
Right of use 1,611,737 130,699 37,354 399,398 362,044 1,118,994
Total property, plant and equipment (1) 37,261,459 7,041,007 6,629,817 8,056,422 3,899,385 2,066,334 6,223,371 31,449,278

(1) During the fiscal year 2020 and 2019, this item observed transfers to and from property, plant and equipment and/or non- current assets held for sale.

Delfín Jorge Ezequiel Carballo

Chairperson

- 117 -
EXHIBIT F
(Continued)
CHANGE IN INVESTMENT PROPERTY
AS OF SEPTEMBER 30, 2020
(Translation of the Financial statements originally issued in Spanish – See Note 39)
(Figures stated in thousands of pesos in terms of purchasing power of pesos as of September 30, 2020, except that indicated otherwise)
Depreciation for the period
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Item Original <br><br>value at<br><br> beginning<br> <br><br>of fiscal <br><br>year Total life<br><br> estimated <br><br>in<br> years Increases Decreases Accumulated Decrease Of<br> the <br><br>period At<br> the end Residual <br><br>value at <br><br>the end<br> of <br><br>the period
Cost
Rented<br> properties 197,812 50 1 30,266 1,699 31,965 165,848
Other<br> investment properties 560,419 50 62,569 3,651 29,059 4 6,429 35,484 583,853
Total<br> investment property 758,231 62,570 3,651 59,325 4 8,128 67,449 749,701
CHANGE IN INVESTMENT PROPERTY
---
AS OF DECEMBER 31, 2019
(Translation of the Financial statements originally issued in Spanish – See Note 39)
(Figures stated in thousands of pesos in terms of purchasing power of pesos as of September 30, 2020, except that indicated otherwise)
Depreciation for the period
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Item Original <br><br>value at<br><br> beginning<br> <br><br>of fiscal <br><br>year Total life<br><br> estimated<br><br> in<br> years Increases Decreases Accumulated Decrease Of<br> the <br><br>period At<br> the end Residual <br><br> value at <br> the end of <br> the fiscal<br> year
Cost
Rented<br> properties 197,812 50 28,055 1 2,212 30,266 167,546
Other<br> investment properties 462,017 50 389,783 291,381 21,880 1 7,180 29,059 531,360
Total<br> investment property 659,829 389,783 291,381 49,935 2 9,392 59,325 698,906

Delfín Jorge Ezequiel Carballo

Chairperson

- 118 -
EXHIBIT G
CHANGE IN INTANGIBLE ASSETS
AS OF SEPTEMBER 30, 2020
(Translation of the Financial statements originally issued in Spanish – See Note 39)
(Figures stated in thousands of pesos in terms of purchasing power of pesos as of September 30, 2020, except that indicated otherwise)
Depreciation for the period
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Item Original <br><br>value at<br><br> beginning<br> <br><br>of fiscal <br><br>year Total life<br><br> estimated <br><br>in<br> years Increases Decreases Accumulated Decrease Of<br> the<br><br> period At<br> the end Residual <br><br>value at <br><br>the end<br> of <br><br>the period
Cost
Licenses 1,998,401 5 419,940 819,188 1 342,092 1,161,279 1,257,062
Other<br> intangible assets 6,225,912 5 976,433 3,075,059 3 954,274 4,029,330 3,173,015
Total<br> intangible assets (1) 8,224,313 1,396,373 3,894,247 4 1,296,366 5,190,609 4,430,077
CHANGE IN INTANGIBLE ASSETS
---
AS OF DECEMBER 31, 2019
(Translation of the Financial statements originally issued in Spanish – See Note 39)
(Figures stated in thousands of pesos in terms of purchasing power of pesos as of September 30, 2020, except that indicated otherwise)
Depreciation for the period
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Item Original <br><br>value at<br><br> beginning<br> <br><br>of fiscal<br><br> year Total life<br><br> estimated <br><br>in<br> years Increases Decreases Accumulated Decrease Of<br> the <br><br>period At<br> the end Residual <br> value at <br><br> the end of<br> the fiscal<br> year
Cost
Licenses 2,432,409 5 625,127 1,059,135 1,499,644 1,052,102 371,646 819,188 1,179,213
Other<br> intangible assets 7,401,985 5 1,452,691 2,628,764 4,346,873 2,478,933 1,207,119 3,075,059 3,150,853
Total<br> intangible assets (1) 9,834,394 2,077,818 3,687,899 5,846,517 3,531,035 1,578,765 3,894,247 4,330,066
(1) During the fiscal year 2020 and 2019, transfers was produced between different lines of this item,<br>that producing differences between amounts at the end of the year and the beginning another, without implying modifications of<br>the total item.
--- ---

Delfín Jorge Ezequiel Carballo

Chairperson

- 119 -
EXHIBIT H
DEPOSIT CONCENTRATION
AS OF SEPTEMBER 30, 2020 AND DECEMBER 31, 2019
(Translation of the Financial statements originally issued in Spanish – See Note 39)
(Figures stated in thousands of pesos in terms of purchasing power of pesos as of September 30, 2020, except that indicated otherwise)
09/30/2020 12/31/2019
--- --- --- --- --- --- --- --- ---
Number of customers Outstanding balance % of total portfolio Outstanding balance % of total portfolio
10 largest customers 121,924,426 25.35 30,407,014 9.48
50 next largest customers 42,156,671 8.77 15,445,212 4.81
100 next largest customers 20,889,066 4.34 11,714,142 3.65
Other customers 295,919,317 61.54 263,334,810 82.06
Total 480,889,480 100.00 320,901,178 100.00

Delfín Jorge Ezequiel Carballo

Chairperson

- 120 -
EXHIBIT I
BREAKDOWN OF FINANCIAL LIABILITIES
FOR RESIDUAL TERMS
AS OF SEPTEMBER 30, 2020
(Translation of the Financial statements originally issued in Spanish – See Note 39)
(Figures stated in thousands of pesos in terms of purchasing power of pesos as of September 30, 2020, except that indicated otherwise)
Remaining terms to maturity
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Item Up to 1<br> month Over 1<br> month and<br> up to 3<br> months Over 3<br> months <br> and up to 6<br> months Over 6<br> months <br> and up to 12<br> months Over 12<br> months <br> and up to 24<br> months Over 24<br> months Total
Deposits 424,948,247 43,023,859 6,951,830 11,314,667 51,326 2,419 486,292,348
From the non-financial government sector 95,917,756 9,806,003 1,052,909 1,926 106,778,594
From the financial sector 440,978 440,978
From the non-financial private sector and foreign residents 328,589,513 33,217,856 5,898,921 11,312,741 51,326 2,419 379,072,776
Derivative instruments 3 378 381
Other financial liabilities 26,013,817 51,579 15,579 142,342 20,390 7,429 26,251,136
Financing received from the Central Bank of Argentina and other financial institutions 35,190 296,584 213,073 112,766 60,348 9,670 727,631
Issued corporate bonds 197,750 208,048 215,866 2,800,652 2,793,793 6,216,109
Subordinated corporate bonds 1,028,362 1,028,363 2,159,257 40,648,046 44,864,028
Total 451,195,007 44,608,810 7,396,348 15,398,790 5,085,114 40,667,564 564,351,633

This exhibit discloses contractual future cash flows that include interests and accessories to be accrued until maturity of the contracts.

Delfín Jorge Ezequiel Carballo

Chairperson

- 121 -
EXHIBIT I
(Continued)
BREAKDOWN OF FINANCIAL LIABILITIES
FOR RESIDUAL TERMS
AS OF DECEMBER 31, 2019
(Translation of the Financial statements originally issued in Spanish – See Note 39)
(Figures stated in thousands of pesos in terms of purchasing power of pesos as of September 30, 2020, except that indicated otherwise)
Remaining terms to maturity
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Item Up to 1<br> month Over 1<br> month and<br> up to 3<br> months Over 3<br> months <br> and up to 6<br> months Over 6<br> months <br> and up to 12<br> months Over 12<br> months <br> and up to 24<br> months Over 24<br> months Total
Deposits 286,104,570 31,936,853 4,247,226 1,256,621 65,467 27,725 323,638,462
From the non-financial government sector 20,636,575 951,662 52,287 2,544 21,643,068
From the financial sector 384,185 384,185
From the non-financial private sector and foreign residents 265,083,810 30,985,191 4,194,939 1,254,077 65,467 27,725 301,611,209
Derivative instruments 358,472 417,185 164,416 940,073
Repo transactions 1,226,083 1,226,083
Other financial institutions 1,226,083 1,226,083
Other financial liabilities 22,673,042 119,041 126,454 204,858 396,771 525,530 24,045,696
Financing received from the Central Bank of Argentina and other financial institutions 1,260,919 1,015,080 184,144 120,069 207,472 56,029 2,843,713
Issued corporate bonds 391,667 629,763 904,300 4,113,993 3,778,116 9,817,839
Subordinated corporate bonds 988,806 988,807 1,977,613 40,171,906 44,127,132
Total 312,014,753 33,488,159 6,340,809 3,474,655 6,761,316 44,559,306 406,638,998

This exhibit discloses contractual future cash flows that include interests and accessories to be accrued until maturity of the contracts.

Delfín Jorge Ezequiel Carballo

Chairperson

- 122 -
EXHIBIT J
CHANGES IN PROVISIONS
AS OF SEPTEMBER 30, 2020
(Translation of the Financial statements originally issued in Spanish – See Note 39)
(Figures stated in thousands of pesos in terms of purchasing power of pesos as of September 30, 2020, except that indicated otherwise)
Decreases
--- --- --- --- --- --- --- --- --- --- --- --- --- ---
Item Amounts at beginning of fiscal year Increases Reversals Charge off Monetary effects generated by provisions 09/30/2020
Provisions<br> for eventual commitments 21,122 8,550 7,205 (3,681 ) 18,786
For  Administrative,<br> disciplinary and criminal penalties 878 (160 ) 718
Other 1,779,946 812,051 7 635,603 (350,347 ) 1,606,040
Total<br> Provisions 1,801,946 820,601 7 642,808 (354,188 ) 1,625,544
CHANGES IN PROVISIONS
---
AS OF DECEMBER 31, 2019
(Translation of the Financial statements originally issued in Spanish – See Note 39)
(Figures stated in thousands of pesos in terms of purchasing power of pesos as of September 30, 2020, except that indicated otherwise)
Decreases
--- --- --- --- --- --- --- --- --- --- --- --- --- ---
Item Amounts at beginning of fiscal year Increases Reversals Charge off Monetary effects generated by provisions 09/30/2020
Provisions<br> for eventual commitments 20,185 9,864 (8,927 ) 21,122
For  Administrative,<br> disciplinary and criminal penalties 1,350 (472 ) 878
Other 1,966,153 1,615,880 1,035,404 32,989 (733,694 ) 1,779,946
Total<br> Provisions 1,987,688 1,625,744 1,035,404 32,989 (743,093 ) 1,801,946

Delfín Jorge Ezequiel Carballo

Chairperson

- 123 -

EXHIBIT K

COMPOSITION OF CAPITAL STOCK
AS OF SEPTEMBER 30, 2020
(Translation of the Financial statements originally issued in Spanish – See Note 39)
(Figures stated in thousands of pesos in terms of purchasing power of pesos as of September 30, 2020, except that <br><br>indicated otherwise)
Shares Capital Stock
--- --- --- --- --- --- --- --- --- --- ---
Votes per Issued
Class Stock number Face value share 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, 2019
(Translation of the Financial statements originally issued in Spanish – See Note 39)
(Figures stated in thousands of pesos in terms of purchasing power of pesos as of September 30, 2020, except that <br><br>indicated otherwise)
Shares Capital Stock
--- --- --- --- --- --- --- --- --- --- ---
Class Stock number Face 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

Delfín Jorge Ezequiel Carballo

Chairperson

124

EXHIBIT L

FOREIGN CURRENCY AMOUNTS
AS OF SEPTEMBER 30, 2020 AND DECEMBER 31, 2019
(Translation of the Financial statements originally issued in Spanish – See Note 39)
(Figures<br> stated in thousands of pesos in terms of purchasing power of pesos as of September 30, 2020, except that <br><br>indicated<br> otherwise)
09/30/2020 12/31/2019
--- --- --- --- --- --- --- --- --- --- --- --- ---
Total parent company Total per currency
Item and local branches US dollar Euro Real Other Total
ASSETS
Cash and deposits in banks 81,122,802 80,632,293 348,808 16,273 125,428 82,755,712
Debt securities at fair value through profit or loss 854 854 302,355
Other financial assets 4,297,537 4,297,537 4,477,295
Loans and other financing 22,981,754 22,981,754 47,296,250
Non-financial Public Sector
Other financial institutions 39,045 39,045 743,743
From the non-financial private sector and foreign residents 22,942,709 22,942,709 46,552,507
Other debt securities
Financial assets delivered as guarantee 1,517,236 1,517,236 3,519,605
Equity instruments at fair value through profit or loss 8,479 8,479 12,987
Investments in associates and joint ventures 2,391,898 2,391,898 2,423,174
TOTAL ASSETS 112,320,560 111,830,051 348,808 16,273 125,428 140,787,378
LIABILITIES
Deposits 66,840,363 66,840,363 96,867,544
Non-financial government sector 2,536,305 2,536,305 4,879,694
Financial sector 393,423 393,423 281,170
Non-financial private sector and foreign residents 63,910,635 63,910,635 91,706,680
Other financial  liabilities 4,162,146 4,044,194 104,684 13,268 4,262,525
Financing from the Central Bank and other financial institutions 539,839 539,839 2,501,378
Subordinated corporate bonds 31,529,966 31,529,966 29,730,457
Other non-financial liabilities 45,312 45,312 17,552
TOTAL LIABILITIES 103,117,626 102,999,674 104,684 13,268 133,379,456

Delfín Jorge Ezequiel Carballo

Chairperson

125

EXHIBIT O

DERIVATIVE FINANCIAL INSTRUMENTS
AS OF SEPTEMBER 30, 2020
(Translation of the Financial statements originally issued in Spanish – See Note 39)
(Figures stated in thousands of pesos in terms of purchasing power of pesos as of September 30, 2020, except that<br><br> indicated otherwise)
Type of <br><br>contract Purpose of the transactions performed Underlying <br><br>asset Type of settlement Negotiation environment or counter-party Originally<br><br> agreed weighted monthly <br><br>average term <br><br>(in moths) Residual <br><br>weighted <br><br>monthly <br><br>average term <br><br>(in moths) Weighted <br><br>daily average <br><br>term<br><br> settlement of differences<br><br> (in days) Amount (*)
--- --- --- --- --- --- --- --- --- --- --- --- ---
Intermediation Foreign Daily settlement of ROFEX (over-the-counter 2 2 1 128,912
Futures - own account currency differences electronic market)
Intermediation Foreign Maturity settlement Over The Counter  - Residents
Forwards - own account currency of differences in Argentina – Non-financial sector 6 2 30 321,818
Intermediation Local government With delivery of Other countries of <br> local
Repo transactions - own account securities underlying asset 1 1 61,700,148
Intermediation With delivery of Over The Counter  - Residents
Options - own account Other underlying asset in Argentina – Non- 33 14 334,408
Financial sector
(*) Related to the valuation of the underlying traded, exposed in absolute value.
---

Delfín Jorge Ezequiel Carballo

Chairperson

126

EXHIBIT Q

BREAKDOWN  OF STATEMENT OF INCOME
FOR THE THREE AND NINE MONTH PERIODS ENDED SEPTEMBER 30, 2020 AND 2019
(Translation of the Financial statements originally issued in Spanish – See Note 39)
(Figures stated in thousands of pesos in terms of purchasing power of pesos as of September 30, 2020, except that<br><br> indicated otherwise)
Net financial Income/ (Loss)
--- --- --- --- --- --- --- --- --- --- --- --- ---
Mandatory measurement
Items Quarter ended 09/30/2020 Accumulated from beginning of year up to 09/30/2020 Quarter ended 09/30/2019 Accumulated from beginning of year up to 09/30/2019
For measurement of financial assets at fair value through profit or loss
Gain / (Loss) from government securities 2,644,815 6,390,394 (348,643 ) (184,450 )
Gain from private securities 20,765 163,325 153,683 556,222
Gain from derivative financial instruments
Forward transactions 1,328 62,659 1,062,084 1,554,730
Loss from other financial assets (2,505 ) (982 ) (5,492 ) (5,812 )
(Loss) / Gain from equity instruments at fair value through profit or loss (106,772 ) 83,324 (14,393 ) 2,307,001
Loss from sales or decreases of financial assets at fair value (*) (9,646,534 ) (20,757,945 ) (17,466,037 ) (44,095,307 )
Total (7,088,903 ) (14,059,225 ) (16,618,798 ) (39,867,616 )

(*) Includes reclassifications of instruments classified at fair value through other comprehensive income that were derecognized or charged or charged during the period.

Delfín Jorge Ezequiel Carballo

Chairperson

127

EXHIBIT Q

(Continued)

BREAKDOWN  OF STATEMENT OF INCOME
FOR THE THREE AND NINE MONTH PERIODS ENDED SEPTEMBER 30, 2020 AND 2019
(Translation of the Financial statements originally issued in Spanish – See Note 39)
(Figures stated in thousands of pesos in terms of purchasing power of pesos as of September 30, 2020, except that <br><br>indicated otherwise)
Net financial income/ (Loss)
--- --- --- --- --- --- --- --- --- --- --- --- ---
Interest and adjustment for the <br><br>application of the effective interest rate <br><br>of financial assets measured at <br><br>amortized cost Quarter ended 09/30/2020 Accumulated<br> <br><br>from beginning<br><br> of year up to<br><br> 09/30/2020 Quarter ended 09/30/2019 Accumulated <br><br>from beginning <br><br>of year up to <br><br>09/30/2019
Interest income
for cash and bank deposits 28,763 113,048 124,189 234,212
for government securities 1,370,422 4,399,533 2,692,067 4,434,756
for private securities 263,773 1,299,165 520,046 522,398
for loans and other financing
Non-financial public sector 509,337 1,557,352 103,208 638,448
Financial sector 196,467 751,345 539,976 1,975,771
Non-financial private sector
Overdrafts 1,443,231 9,132,910 4,785,434 10,835,235
Documents 796,783 3,223,490 1,383,648 5,222,207
Mortgage loans 1,551,722 5,195,749 2,113,814 7,065,253
Pledge loans 105,656 330,270 184,913 607,898
Personal loans 7,156,123 22,216,041 8,869,787 28,517,016
Credit cards 2,500,724 8,057,674 3,729,438 12,478,512
Financial leases 10,813 43,338 51,097 188,783
Other 3,488,603 8,720,492 1,354,496 4,404,682
for repo transactions
Central Bank of Argentina 2,094,661 4,037,375 17,148
Other financial institutions 9,930 58,380 10,787 3,109,572
Total 21,527,008 69,136,162 26,462,900 80,251,891
Interest expenses
for deposits
Financial private sector
Non-financial private sector
Checking accounts (423,356 ) (679,717 ) (151,565 ) (447,955 )
Saving accounts (124,333 ) (422,085 ) (164,045 ) (575,325 )
Time deposits and investments accounts (14,152,513 ) (32,855,845 ) (20,153,470 ) (59,493,084 )
for Financing received from Central Bank of Argentina and other financial institutions (17,822 ) (57,979 ) (89,447 ) (263,724 )
for repo transactions
Other financial institutions (1,695 ) (97,810 ) (76,763 ) (370,520 )
for other financial liabilities (7,947 ) (44,313 ) (50,609 ) (146,308 )
Issued corporate bonds (347,449 ) (1,056,916 ) (1,136,128 ) (2,673,090 )
for subordinated corporate bonds (552,271 ) (1,608,109 ) (553,010 ) (1,536,181 )
Total (15,627,386 ) (36,822,774 ) (22,375,037 ) (65,506,187 )

Delfín Jorge Ezequiel Carballo

Chairperson

128

EXHIBIT Q

(Continued)

BREAKDOWN  OF STATEMENT OF INCOME
FOR THE THREE AND NINE MONTH PERIODS ENDED SEPTEMBER 30, 2020 AND 2019
(Translation of the Financial statements originally issued in Spanish – See Note 39)
(Figures<br> stated in thousands of pesos in terms of purchasing power of pesos as of September 30, 2020, except that<br><br> indicated<br> otherwise)
Income for the period Other comprehensive income Income for the period Other comprehensive income
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Interest and <br><br>adjustment for the <br><br>application of the<br><br> effective interest rate <br><br>of financial assets <br><br>measured at fair value <br><br>through other <br><br>comprehensive income Quarter <br><br>ended 09/30/2020 Accumulated from beginning of year up to 09/30/2020 Quarter <br><br>ended 09/30/2020 Accumulated from beginning of year up to 09/30/2020 Quarter <br><br>ended 09/30/2019 Accumulated from beginning of year up to 09/30/2019 Quarter <br><br>ended 09/30/2019 Accumulated from beginning of year up to 09/30/2019
From debt government securities 15,324,049 34,539,307 (1,070,465 ) (1,516,835 ) 24,653,912 63,118,356 587,858 589,790
Total 15,324,049 34,539,307 (1,070,465 ) (1,516,835 ) 24,653,912 63,118,356 587,858 589,790
Income for the period
--- --- --- --- --- --- --- --- ---
Commissions income Quarter ended 09/30/2020 Accumulated from beginning of year up to 09/30/2020 Quarter ended 09/30/2019 Accumulated from beginning of year up to 09/30/2019
Commissions related to obligations 3,016,597 8,850,567 3,369,611 10,393,299
Commissions related to credits 27,876 136,026 68,230 173,007
Commissions related to loans commitments and financial guarantees 104 454 3,095 7,355
Commissions related to securities value 33,287 90,206 36,217 114,971
Commissions to credit cards 2,017,432 5,866,787 1,935,701 5,614,425
Commissions to insurances 359,740 1,070,273 331,356 1,094,296
Commissions related to trading and foreign exchange transactions 162,300 378,518 166,092 446,449
Total 5,617,336 16,392,831 5,910,302 17,843,802
Loss for the period
--- --- --- --- --- --- --- --- --- --- --- --- ---
Commissions expenses Quarter ended 09/30/2020 Accumulated from beginning of year up to 09/30/2020 Quarter ended 09/30/2019 Accumulated from beginning of year up to 09/30/2019
Commissions related to trading and foreign exchange transactions (30,069 ) (82,767 ) (91,522 ) (137,971 )
Other
Commissions paid ATM exchange (270,848 ) (796,604 ) (237,979 ) (626,876 )
Checkbooks commissions and compensating cameras (97,356 ) (278,661 ) (109,327 ) (311,622 )
Commissions Credit cards and foreign trade (56,525 ) (175,536 ) (110,578 ) (331,591 )
(454,798 ) (1,333,568 ) (549,406 ) (1,408,060 )

Delfín Jorge Ezequiel Carballo

Chairperson

129

EXHIBIT R

VALUE ADJUSTMENT FOR CREDIT LOSSES - ALLOWANCES FOR UNCOLLECTIBILITY RISK
AS OF SEPTEMBER 30, 2020
(Translation of the Financial statements originally issued in Spanish – See Note 39)
(Figures stated in thousands of pesos in terms of purchasing power of pesos as of September 30, 2020, except that <br><br>indicated otherwise)
ECL of remanent life of financial <br><br>asset
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Item Amounts at beginning of the fiscal year ECL of the<br><br> next 12 <br><br>months Financial <br><br>instruments with a <br><br>significant <br><br>increase in credit <br><br>risk Financial instruments with impairment Effect <br><br>monetary generated for provisions 09/30/2020
Other financial assets 12,605 9,688 (2,298 ) 19,995
Loans and other financing 6,194,058 2,148,661 1,125,199 249,673 (1,128,952 ) 8,588,639
Other financial institutions 33,749 (6,149 ) (6,153 ) 21,447
To the non-financial private sector and foreign residents
Overdrafts 943,729 28,516 44,102 495,225 (172,006 ) 1,339,566
Documents 449,160 74,191 80,984 (5,024 ) (81,866 ) 517,445
Mortgage loans 468,419 86,471 111,213 (14,787 ) (85,376 ) 565,940
Pledge loans 157,815 18,851 65,766 (15,410 ) (28,764 ) 198,258
Personal loans 2,246,910 402,455 186,999 (77,359 ) (409,528 ) 2,349,477
Credit cards 969,822 798,367 374,749 (10,484 ) (176,764 ) 1,955,690
Financial leases 6,544 (1,526 ) 316 1,677 (1,193 ) 5,818
Other 917,910 747,485 261,070 (124,165 ) (167,302 ) 1,634,998
Eventual commitments 21,122 4,865 (3,354 ) (3,847 ) 18,786
Other debt securities 2,369 1,466 (431 ) 3,404
Total allowances 6,230,154 2,164,680 1,121,845 249,673 (1,135,528 ) 8,630,824
VALUE ADJUSTMENT FOR CREDIT LOSSES - ALLOWANCES FOR UNCOLLECTIBILITY RISK
---
AS OF DECEMBER 31, 2019
(Translation of the Financial statements originally issued in Spanish – See Note 39)
(Figures stated in thousands of pesos in terms of purchasing power of pesos as of September 30, 2020, except that<br><br> indicated otherwise)
ECL of remanent life of financial <br><br>asset
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Item Amounts at beginning of the fiscal year ECL of the <br><br>next 12 <br><br>months Financial <br><br>instruments with a <br><br>significant <br><br>increase in credit <br><br>risk Financial instruments <br><br>with <br><br>impairment Effect <br><br>monetary generated for provisions 12/31/2019
Other financial assets 12,605 12,605
Loans and other financing 7,278,207 546,327 146,277 770,122 (2,546,875 ) 6,194,058
Other financial institutions 70 33,703 (24 ) 33,749
To the non-financial private sector and foreign residents
Overdrafts 487,430 104,046 (80,146 ) 602,966 (170,567 ) 943,729
Documents 984,631 (44,312 ) 97,359 (243,964 ) (344,554 ) 449,160
Mortgage loans 460,138 2,371 108,368 58,559 (161,017 ) 468,419
Pledge loans 389,850 7,212 (128,546 ) 25,720 (136,421 ) 157,815
Personal loans 2,602,011 344,613 162,192 48,620 (910,526 ) 2,246,910
Credit cards 1,550,335 81,532 (96,210 ) (23,324 ) (542,511 ) 969,822
Financial leases 18,574 529 (3,018 ) (3,041 ) (6,500 ) 6,544
Other 785,168 16,633 86,278 304,586 (274,755 ) 917,910
Eventual commitments 20,185 1,080 6,920 (7,063 ) 21,122
Other debts securities 2,369 2,369
Total allowances 7,298,392 562,381 153,197 770,122 (2,553,938 ) 6,230,154

Delfín Jorge Ezequiel Carballo

Chairperson

130

REVIEW REPORT ON CONDENSED CONSOLIDATEDINTERIM FINANCIAL STATEMENTS

To the Directors of

BANCO MACRO S.A.

CUIT (Argentine tax identification number): 30-50001008-4

Registered office: Avenida Eduardo Madero 1182

Buenos Aires City

I. Report on the financial statements

Introduction

1. We have reviewed the accompanying condensed consolidated interim financial statements of BANCO<br>MACRO S.A. and its subsidiaries (“the Bank”), which comprise: (a) the consolidated statement of financial position<br>as of September 30, 2020, (b) the consolidated statements of income and other comprehensive income for the three and<br>nine months periods ended September 30, 2020, the changes in shareholders’ equity and cash flows for the nine-month<br>period then ended, and (c) explanatory notes and other supplementary information.

Responsibility of the Bank’s Boardof Directors and Management in connection with the financial statements

2. The Bank’s Board of Directors and Management are responsible for the preparation and presentation<br>of the financial statements mentioned in paragraph 1. in accordance with the accounting framework established by the Central Bank<br>of Argentina (“BCRA”), which, as indicated in note 3. to the financial statements mentioned in paragraph 1., is based<br>on International Financial Reporting Standards (“IFRS”), and in particular for the condensed interim financial statements<br>on the International Accounting Standard (“IAS”) 34 "Interim Financial Reporting", as those standards were<br>issued by the International Accounting Standards Board ("IASB") and adopted by the Argentine Federation of Professional<br>Councils in Economic Sciences (“FACPCE” for its Spanish acronym), subject to the exceptions established by the BCRA<br>that are explained in the aforementioned note. The Bank’s Board of Directors and Management are also responsible for the<br>internal control they may deem necessary to allow the interim consolidated financial statements to be prepared free of material<br>misstatements, whether due to errors or irregularities. 
2

Auditor’s responsibility

3. Our responsibility is to express a conclusion on the financial statements mentioned in paragraph<br>1. based on our review, which was performed in accordance with the standards established by FACPCE Technical Resolution No. 37<br>and with the “Minimum external auditing standards” issued by the BCRA, applicable to the review of interim financial<br>statements, and in compliance with the ethical requirements relevant to the audit of the Bank’s annual financial statements.<br>A review of interim financial statements consists of making inquiries, mainly to the persons in charge of accounting and financial<br>matters, as well as applying analytical procedures and other review procedures. A review is substantially less in scope than an<br>audit of financial statements; therefore, we cannot obtain reasonable assurance that we will become aware of all the material issues<br>that may arise in an audit. Therefore, we do not express an audit opinion.

Conclusion

4. Based on our review, we have not become aware of anything that may lead us to believe that the<br>financial statements mentioned in paragraph 1. have not been prepared, in all material respects, in accordance with the accounting<br>framework established by the BCRA mentioned in paragraph 2.

Emphasis oncertain aspects disclosed in the financial statements and other issues

5. We would like to draw attention to the information contained in the following notes to the consolidated<br>financial statements mentioned in paragraph 1.:
(a) Note 3. “Basis for the preparation of these financial statements and applicable accounting<br>standards”, section “Applicable Accounting Standards”, in which the Entity indicates (i) that it has not<br>applied section 5.5 “Impairment” of the IFRS 9 “Financial Instruments” to financial assets that comprise<br>exposures to the public sector, which were temporarily excluded from that application by Communication “A” 6847 of<br>the BCRA, and (ii) that although it is in process of quantifying the effects that the full application of the mentioned standard<br>would have on the financial statements, the Entity considers that these effects could be significant.
--- --- 
3
(b) Note 3. “Basis for the preparation of these financial statements and applicable accounting<br>standards”, section "Applicable Accounting Standards", in which the Entity discloses that (i) for the purposes<br>of measuring a holding of equity instruments in particular at fair value, it has applied the items required by the BCRA through<br>a Memorandum dated April 29, 2019, and (ii) that although it is in process of quantifying the difference between the<br>value that arises from what is mentioned in point (i) above and the fair value determined in accordance with the application<br>of IFRS as of September 30, 2020, the Entity estimates that these effects could be significant.

These aspects do not modify the conclusion expressed in paragraph 4., but must be taken into account by those users who use IFRS for the interpretation of the financial statements mentioned in paragraph 1.

6. As further explained in note 41. to the consolidated financial statements mentioned in paragraph<br>1., certain accounting practices used by the Bank to prepare the accompanying financial statements conform with the accounting<br>framework established by the BCRA but may not conform with the accounting principles generally accepted in other countries.

Other matters

7. We also issued a separate report on the condensed separate interim financial statements of BANCO<br>MACRO S.A. as of the same date and for the same periods indicated in paragraph 1.
II. Report on other legal and regulatory requirements
--- ---
8. In compliance with current legal requirements, we further report that:
--- ---
(a) The financial statements mentioned in paragraph 1., as mentioned in note 3. thereto, are in process<br>of being transcribed into the Books of Accounts of BANCO MACRO S.A. and, based on our review, we have not become aware of anything<br>that may lead us to believe that these financial statements have not been prepared, in all material respects, in conformity with<br>the applicable Argentine Business Associations Law provisions and Argentine Securities Commission (“CNV”) regulations.
--- --- 
4
(b) The condensed separate interim financial statements of BANCO MACRO S.A. as of September 30,<br>2020, arise from the accounting books kept, in all formal respects, pursuant to current legal requirements.
(c) As of September 30, 2020, the liabilities accrued from employee and employer contributions<br>to the Integrated Pension Fund System, as recorded in the Bank’s books, amounted to Ps. 257,508,003, none of which was due<br>and payable as of that date.
--- ---

Buenos Aires City,

November 30, 2020

PISTRELLI, HENRY MARTIN Y ASOCIADOS S.R.L.
C.P.C.E.C.A.B.A. Vol. 1 – Fo. 13
CARLOS M. SZPUNAR
Partner
Certified Public Accountant (U.B.A.)
C.P.C.E.C.A.B.A. Vol. 192 – Fo. 110

REVIEW REPORT ON CONDENSED SEPARATEINTERIM FINANCIAL STATEMENTS

To the Directors of

BANCO MACRO S.A.

CUIT (Argentine tax identification number): 30-50001008-4

Registered office: Avenida Eduardo Madero 1182

Buenos Aires City

I. Report on the financial statements

Introduction

1. We have reviewed the accompanying condensed separate interim financial statements of BANCO MACRO<br>S.A. (“the Bank”), which comprise: (a) the separate statement of financial position as of September 30, 2020,<br>(b) the separate statements of income and other comprehensive income for the three and nine months periods ended September 30,<br>2020, the changes in shareholders’ equity and cash flows for the nine-month period then ended, and (c) explanatory notes<br>and other supplementary information.

Responsibility of the Bank’s Boardof Directors and Management in connection with the financial statements

2. The Bank’s Board of Directors and Management are responsible for the preparation and presentation<br>of the financial statements mentioned in paragraph 1. in accordance with the accounting framework established by the Central Bank<br>of Argentina (“BCRA”), which, as indicated in note 3. to the financial statements mentioned in paragraph 1., is based<br>on International Financial Reporting Standards (“IFRS”), and in particular for the condensed interim financial statements<br>on the International Accounting Standard (“IAS”) 34 "Interim Financial Reporting", as those standards were<br>issued by the International Accounting Standards Board ("IASB") and adopted by the Argentine Federation of Professional<br>Councils in Economic Sciences (“FACPCE” for its Spanish acronym), subject to the exceptions established by the BCRA<br>that are explained in the aforementioned note. The Bank’s Board of Directors and Management are also responsible for the<br>internal control they may deem necessary to allow the interim separate financial statements to be prepared free of material misstatements,<br>whether due to errors or irregularities. 
-2-

Auditor’s responsibility

3. Our responsibility is to express a conclusion on the financial statements mentioned in paragraph<br>1. based on our review, which was performed in accordance with the standards established by FACPCE Technical Resolution No. 37<br>and with the “Minimum external auditing standards” issued by the BCRA, applicable to the review of interim financial<br>statements, and in compliance with the ethical requirements relevant to the audit of the Bank’s annual financial statements.<br>A review of interim financial statements consists of making inquiries, mainly to the persons in charge of accounting and financial<br>matters, as well as applying analytical procedures and other review procedures. A review is substantially less in scope than an<br>audit of financial statements; therefore, we cannot obtain reasonable assurance that we will become aware of all the material issues<br>that may arise in an audit. Therefore, we do not express an audit opinion.

Conclusion

4. Based on our review, we have not become aware of anything that may lead us to believe that the<br>financial statements mentioned in paragraph 1. have not been prepared, in all material respects, in accordance with the accounting<br>framework established by the BCRA mentioned in paragraph 2.

Emphasis on certain aspects disclosedin the financial statements and other issues

5. We would like to draw attention to the information contained in the following notes to the separate<br>financial statements mentioned in paragraph 1.:
(a) Note 3. “Basis for the preparation of these financial statements and applicable accounting<br>standards”, section “Applicable Accounting Standards”, in which the Entity indicates (i) that it has not<br>applied section 5.5 “Impairment” of the IFRS 9 “Financial Instruments” to financial assets that comprise<br>exposures to the public sector, which were temporarily excluded from that application by Communication “A” 6847 of<br>the BCRA, and (ii) that although it is in process of quantifying the effects that the full application of the mentioned standard<br>would have on the financial statements, the Entity considers that these effects could be significant.
--- --- 
-3-
(b) Note 3. “Basis for the preparation of these financial statements and applicable accounting<br>standards”, section "Applicable Accounting Standards ", in which the Entity discloses that (i) for the purposes<br>of measuring a holding of equity instruments in particular at fair value, it has applied the items required by the BCRA through<br>a Memorandum dated April 29, 2019, and (ii) that although it is in process of quantifying the difference between the<br>value that arises from what is mentioned in point (i) above and the fair value determined in accordance with the application<br>of IFRS as of September 30, 2020, the Entity estimates that these effects could be significant.

These aspects do not modify the conclusion expressed in paragraph 4., but must be taken into account by those users who use IFRS for the interpretation of the financial statements mentioned in paragraph 1.

6. As further explained in note 39. to the separate financial statements mentioned in paragraph 1.,<br>certain accounting practices used by the Bank to prepare the accompanying financial statements conform with the accounting framework<br>established by the BCRA but may not conform with the accounting principles generally accepted in other countries.

Other matters

7. We also issued a separate report on the condensed consolidated interim financial statements of<br>BANCO MACRO S.A. and its subsidiaries as of the same date and for the same periods indicated in paragraph 1.
II. Report on other legal and regulatory requirements
--- ---
8. In compliance with current legal requirements, we further report that:
--- ---
(a) Based on our review, we have not become aware of anything that may lead us to believe that the<br>financial statements mentioned in paragraph 1. have not been prepared, in all material respects, in conformity with the applicable<br>Argentine Business Associations Law provisions and Argentine Securities Commission (“CNV”) regulations.
--- --- 
-4-
(b) The financial statements mentioned in paragraph 1. as mentioned in note 3. thereto, are in process<br>of being transcribed into the Books of Accounts of BANCO MACRO S.A. and arise from the accounting books kept, in all formal respects,<br>pursuant to current legal requirements.
(c) As of September 30, 2020, the liabilities accrued from employee and employer contributions<br>to the Integrated Pension Fund System, as recorded in the Bank’s books, amounted to Ps. 257,508,003, none of which was due<br>and payable as of that date.
--- ---
(d) As of September 30, 2020, as stated in note 28. to the financial statements mentioned in paragraph<br>1., the Bank carries shareholders’ equity and a statutory guarantee account to eligible assets that exceed the minimum amounts<br>required by relevant CNV regulations for the categories indicated in the abovementioned note.
--- ---

Buenos Aires City,

November 30, 2020

PISTRELLI, HENRY MARTIN Y ASOCIADOS S.R.L.
C.P.C.E.C.A.B.A. Vol. 1 – Fo. 13
CARLOS M. SZPUNAR
Partner
Certified Public Accountant (U.B.A.)
C.P.C.E.C.A.B.A. Vol. 192 – Fo. 110

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: January 19, 2021

MACRO BANK INC.
By: /s/ Jorge Francisco Scarinci
Name: Jorge Francisco Scarinci
Title: Chief Financial Officer
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