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6-K

Macro Bank Inc. (BMA)

6-K 2020-02-19 For: 2020-02-19
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Added on April 10, 2026

SECURITIES AND EXCHANGE COMMISSION

Washington**,D.C.  20549**

FORM 6-K

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16 UNDERTHE

SECURITIES EXCHANGE ACT OF 1934

February 19, 2020

Commission File Number: 001-32827

MACROBANK INC.

(Translation of registrant’s nameinto English)

Avenida Eduardo Madero 1182

Ciudad Autónoma de Buenos Aires C1106 ACY

Tel: 54 11 5222 6500

(Address of registrant’s principalexecutive offices)

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

Form 20-F x Form 40-F ¨

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

Yes ¨ No x

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

Yes ¨ No x

4Q19 Earnings<br> Release

BancoMacro Announces Results for the Fourth Quarter of 2019

Buenos Aires, Argentina, February 19,2020 – Banco Macro S.A. (NYSE: BMA; BCBA: BMA) (“Banco Macro” or “BMA” or the “Bank”) announced today its results for the fourth quarter ended December 31, 2019 (“4Q19”). All figures are in Argentine pesos (Ps.)

Summary

• The Bank’s net incometotaled Ps.13.3 billion in 4Q19. This result was 1% higher than the result posted in 3Q19 and 153% higher than in 4Q18. In 4Q19,the accumulated annualized return on average equity (“ROAE”) and the accumulated annualized return on average assets(“ROAA”) were 59% and 10.4%, respectively. In FY2019 Net Income totaled Ps.40.8 billion increasing 159% or Ps.25 billioncompared with FY2018.

• In 4Q19, Banco Macro’sfinancing to the private sector grew 10% or Ps.18.7 billion quarter over quarter (“QoQ”) totaling Ps.211.6 billionand increased 22% or Ps.38.6 billion year over year (“YoY”). In the quarter, growth was driven by commercial loans,among which Overdrafts and Others stand out; with a 32% and a 52% increase respectively QoQ. Meanwhile within consumer loans,credit card loans increased 27% QoQ.

• In 4Q19, Banco Macro’stotal deposits increased 1% or Ps.3.7 billion QoQ, totaling Ps.262.9 billion and representing 78% of the Bank’s total liabilities.Private sector deposits increased 3% or Ps.6.4 billion QoQ.

• Banco Macro continued showinga strong solvency ratio, with excess capital of Ps.69 billion, 27.3% regulatory capital ratio – Basel III and 20% Tier 1Ratio. In addition, the Bank’s liquid assets remained at an adequate level, reaching 59% of its total deposits in 4Q19.

• As of 4Q19, the efficiencyratio reached 32.3%, improving from the 37.9% posted in 4Q18.

• In 4Q19, the Bank’snon-performing to total financing ratio was 2.07% and the coverage ratio reached 123.08%.

4Q19 Earnings Release Conference Call **** IR Contacts in Buenos Aires:
Thursday, February 20, 2020 Time: 11:00 a.m. Eastern Time 1:00 p.m. Buenos Aires Time Jorge Scarinci Chief Financial Officer
To participate, please dial: ****
Argentina Toll Free: Webcast Replay: click here Nicolás A. Torres
(011) 3984 5677 **** Investor Relations
Participants Dial In (Toll Free): Available from 02/20/2020 through ****
+1 (844) 450 3847 03/05/2020 Phone: (54 11) 5222 6682
Participants International Dial In: **** E-mail: [email protected]. ar
+1 (412) 317 6370 **** ****
Conference ID: Banco Macro **** Visit our website at:
Webcast: click here **** www.macro.com.ar/relaciones-inversores 
**2**
4Q19 Earnings<br> Release

Disclaimer

This press release includes forward-looking statements. We have based these forward-looking statements largely on our current beliefs, expectations and projections about future events and financial trends affecting our business. Many important factors could cause our actual results to differ substantially from those anticipated in our forward-looking statements, including, among other things: inflation; changes in interest rates and the cost of deposits; government regulation; adverse legal or regulatory disputes or proceedings; credit and other risks of lending, such as increases in defaults by borrowers; fluctuations and declines in the value of Argentine public debt; competition in banking and financial services; deterioration in regional and national business and economic conditions in Argentina; and fluctuations in the exchange rate of the peso.

The words “believe,” “may,” “will,” “aim,” “estimate,” “continue,” “anticipate,” “intend,” “expect” and similar words are intended to identify forward-looking statements. Forward-looking statements include information concerning our possible or assumed future results of operations, business strategies, financing plans, competitive position, industry environment, potential growth opportunities, the effects of future regulation and the effects of competition. Forward-looking statements speak only as of the date they were made, and we undertake no obligation to update publicly or to revise any forward-looking statements after we distribute this press release because of new information, future events or other factors. In light of the risks and uncertainties described above, the forward-looking events and circumstances discussed in this press release might not occur and are not guarantees of future performance.

This report is a summary analysis of Banco Macro's financial condition and results of operations as of and for the period indicated. For a correct interpretation, this report must be read in conjunction with all other material periodically filed with the Comisión Nacional de Valores (www.cnv.gob.ar), the Securities and Exchange Commission (www.sec.gov), Bolsas y mercados Argentinos (www.byma.com.ar) and the New York Stock Exchange (www.nyse.com). In addition, the Central Bank (www.bcra.gov.ar) may publish information related to Banco Macro as of a date subsequent to the last date for which the Bank has published information.

Readers of this report must note that this is a translation made from an original version written and expressed in Spanish. Consequently, any matters of interpretation should be referred to the original version in Spanish.

**3**
4Q19 Earnings<br> Release

This Earnings Release has been preparedin accordance with the accounting framework established by the Central Bank of Argentina (“BCRA”), based on InternationalFinancial Reporting Standards (“I.F.R.S.”) and the resolutions adopted by the International Accouting Standards Board(“I.A.S.B”) and by the Federación Argentina de Consejos Profesionales de Ciencias Económicas (“F.A.C.P.E.”)with the exception of (i) Expected losses of IFRS 9 “Financial Instruments” and (ii) IAS 29 “Financial Reportingin Hyperinflationary Economies” both temporarily excluded by the Central Bank of Argentina from the applicable accountingframework for Financial Institutions. Data and figures shown in this Earnings Release may differ from the ones shown in the 20-Fannual report which shows the impact of the application of I.F.R.S 9 and IAS 29.

Results

Earnings per outstanding share were Ps.20.76 in 4Q19, 1% higher than 3Q19 and 155% higher than the result posted a year ago. On a yearly basis Net Income increased 153% while Earnings per Share increased 155%, given that the average amount of shares outstanding decreased in 3Q18, 4Q18 and 1Q19 due to the Share buyback program.

In FY2019 Earnings per share were Ps.63.85 and increased 168% compared to FY2018

EARNINGS<br> PER SHARE Change
In MILLION 4Q18 1Q19 2Q19 3Q19 4Q19 2018 2019 QoQ YoY
Net income -Parent Company-<br> (M ) 5,243 7,343 7,033 13,158 13,266 15,729 40,800 1 % 153 %
Average # of shares outstanding (M) 643 639 639 639 639 661 639 0 % -1 %
Average #of treasury<br> stocks (shares repurchased) (M) 26 30 30 14 - 9 0 -100 % -100 %
Book value per avg. Outstanding share () 82 93 94 117 141 82 141 21 % 72 %
Shares Outstanding (M) 641 639 639 639 639 641 639 0 % 0 %
Earnings per avg.  outstanding<br> share () 8.15 11.49 11.01 20.59 20.76 23.79 63.85 1 % 155 %
EOP FX (Pesos per<br> ) 37.8083 43.3533 42.4483 57.5583 59.8950 37.8083 59.8950 4 % 58 %
Book value per avg. issued<br> ADS () 18.62 22.16 21.41 22.14 23.54 18.62 23.54 6 % 26 %
Earnings per avg.<br> outstanding ADS () 1.41 2.16 2.65 2.59 3.47 7.82 10.87 34 % 145 %

All values are in US Dollars.

Banco Macro’s 4Q19 net income of Ps.13.3 billion was 1% or Ps.106 million higher than the previous quarter and 153% or Ps.8 billion higher YoY. This result represented an accumulated ROAE and ROAA of 59% and 10.4% respectively.

In FY2019 Net income totaled Ps.40.8 billion, 159% higher than the result posted in FY2018.

**4**
4Q19<br> Earnings Release
INCOME<br> STATEMENT RECURRING MACRO<br> Consolidated Change
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
In MILLION $ 4Q18 (¹) 1Q19(²) 2Q19(³) 3Q19(****^4^) 4Q19(****^5^) QoQ **** YoY ****
Net Interest<br> Income 12,288 12,931 16,785 20,057 22,715 13 % 85 %
Net fee income 3,259 3,310 3,391 3,753 4,125 10 % 27 %
Subtotal (Net Interest<br> Income + Net Fee Income) 15,547 16,241 20,176 23,810 26,840 13 % 73 %
Net Income from financial<br> instruments at fair value through P&L 364 605 133 659 1,106 68 % 204 %
Income from assets at<br> amortized cost 1 -17 0 -1 54 - 5300 %
Differences in quoted<br> prices of gold and foreign currency 729 -167 333 1,497 1,281 -14 % 76 %
Other operating income 413 736 817 1,071 926 -14 % 124 %
Provision for loan losses 836 800 848 824 1,033 25 % 24 %
Net Operating Income 16,218 16,598 20,611 26,212 29,174 11 % 80 %
Employee benefits 3,124 3,133 4,007 4,308 4,979 16 % 59 %
Administrative expenses 2,105 2,096 2,301 2,903 3,294 13 % 56 %
Depreciation and impairment<br> of assets 215 290 317 366 397 8 % 85 %
Other operating expenses 2,916 3,104 2,886 4,382 6,631 51 % 127 %
Operating Income 7,858 7,975 11,100 14,253 13,873 -3 % 77 %
Result from associates<br> & joint ventures 33 26 23 17 25 47 % -24 %
Result before taxes<br> from continuing operations 7,891 8,001 11,123 14,270 13,898 -3 % 76 %
Income tax 2,440 2,307 3,319 -1,263 3,192 - 31 %
Net income from continuing<br> operations 5,451 5,694 7,804 15,533 10,706 -31 % 96 %
Recurring Net Income<br> of the period 5,451 5,694 7,804 15,533 10,706 -31 % 96 %
Non recurring income/loss<br> of the period -208 1,649 -772 -2,374 2,559 -208 % -1330 %
Net Income (Recurring<br> + Non Recurring) 5,243 7,343 7,032 13,159 13,265 1 % 153 %

(^1^)Excluding provisions for class actions, deferred tax

(^2^)Excluding Prisma & Molinos Cañuelas

(^3^)Excluding results related to social security contributions (Employee benefits & Other Operating income), sale of real estate(Other Operating income), Prisma dividends (Result from associates & joint ventures) and Income tax

(^4^)Excluding IFRS adjustment on Government Securities, Severance Pay and provisions for class actions

(^5^)Excluding the reverse of IFRS adjustment on Governement Securities, higher loan loss provisions and adjustments on TC21

Net operating income (before G&A and personnel expenses) was Ps.29.7 billion in 4Q19, increasing 13% or Ps.3.5 billion compared to 3Q19 and 83% or Ps.13.5 billion compared to the previous year.

In FY2019 Net Operating income (before G&A and personnel expenses) totaled Ps.95.8 billion, 89% higher than the previous year.

Operating income (after G&A and personnel expenses) was Ps.16.4 billion in 4Q19, 38% or Ps.4.5 billion higher than in 3Q19 and 117% or Ps.8.9 billion higher than a year ago.

In FY2019 Operating Income (after G&A and personnel expenses) of Ps.48.1 billion was 114% higher than in FY2018.

It is important to emphasize that this result was obtained with a leverage of 4.8x assets to equity ratio.

**5**
4Q19 Earnings<br> Release
INCOME<br> STATEMENT Change
--- --- --- --- --- --- --- --- --- --- --- --- ---
In MILLION 4Q18 1Q19 2Q19 3Q19 4Q19 2018 2019 QoQ YoY
Net Interest Income 12,288 12,931 16,785 20,057 22,715 39,646 72,488 13 % 85 %
Net fee income 3,124 3,309 3,389 3,751 4,125 11,162 14,574 10 % 32 %
Subtotal (Net Interest<br> Income + Net Fee Income) 15,412 16,240 20,176 23,810 26,840 50,808 87,062 13 % 74 %
Net Income from financial<br> instruments  at fair value through P&L 364 1,974 133 659 2,580 1,066 5,346 292 % 609 %
Income from assets at<br> amortized cost 1 -17 0 -1 54 -5 36 - 5300 %
Differences in quoted<br> prices of gold and foreign currency 729 -51 333 1,497 1,281 -1,376 3,060 -14 % 76 %
Other operating income 413 3,114 983 1,071 926 2,945 6,099 -14 % 124 %
Provision for loan losses 836 2,154 848 824 1,991 2,706 5,818 142 % 138 %
Net Operating Income 16,218 19,108 20,776 26,211 29,690 50,604 95,785 13 % 83 %
Employee benefits 3,124 3,134 4,917 4,430 4,979 10,308 17,460 12 % 59 %
Administrative expenses 2,105 2,095 2,300 2,902 3,294 6,826 10,591 14 % 56 %
Depreciation and impairment<br> of assets 215 290 317 366 397 737 1,370 8 % 85 %
Other operating expenses 3,213 3,104 3,949 6,634 4,588 10,303 18,275 -31 % 43 %
Operating Income 7,561 10,484 9,293 11,879 16,432 22,430 48,088 38 % 117 %
Result from associates<br> & joint ventures 33 26 613 17 25 265 681 47 % -24 %
Result before taxes<br> from continuing operations 7,594 10,510 9,906 11,896 16,457 22,695 48,769 38 % 117 %
Income tax 2,351 3,166 2,874 -1,263 3,192 6,965 7,969 - -
Net income from continuing<br> operations 5,243 7,344 7,032 13,159 13,265 15,730 40,800 1 % 153 %
Net Income of the period 5,243 7,344 7,032 13,159 13,265 15,730 40,800 1 % 153 %
Net income of the period<br> attributable to parent company 5,243 7,343 7,033 13,158 13,266 15,729 40,800 1 % 153 %
Net income of the period<br> attributable to minority interest 0 1 -1 1 -1 1 0 - -

All values are in US Dollars.

The Bank’s 4Q19 net interest income totaled Ps.22.7 billion, 13% or Ps.2.7 billion higher than in 3Q19 and 85% or Ps.10.4 billion higher YoY.

In FY2019 net interest income totaled Ps.72.5 billion, 83% higher than in FY2018.

In 4Q19 interest income totaled Ps.32.8 billion, 8% or Ps.2.8 billion higher than in 3Q19 and 38% or Ps.9 billion higher than in 4Q18.

Income from interest on loans and other financing totaled Ps.22.1 billion, 38% or Ps.6.1 billion higher compared with the previous quarter. On a yearly basis Income from interest on loans increased 42% or Ps.6.6 billion.

In FY2019 Income from interest on loans and other financing totaled Ps.67.5 billion, 42% higher than in FY2018.

In 4Q19 income from government and private securities decreased 49% or Ps.9.5 billion QoQ (due to a 67% reduction in the average Leliq position and a 235b.p. reduction in the Leliq rate) and increased 25% or Ps.2 billion compared with the same period of last year. This result is explained 56% by income from government and private securities through other comprehensive income (Central Bank Notes) and the remaining 44% is explained by income of government and private securities at amortized cost.

In FY2019 income from government and private securities totaled Ps.53.8 billion, 245% higher than in FY2018.

In 4Q19 income from Repos totaled Ps.709 million, Ps.702 higher than the previous quarter and Ps.381 million higher than a year ago.

In 4Q19 Differences in foreign currency totaled a Ps.1.3 billion gain, due to the 4% argentine peso depreciation against the US dollar and the Bank’s long spot dollar position during the quarter and FX trading results (Ps.1 billion). It should be noted that if income from investment in derivative financing instruments is added then differences in quoted prices of gold and foreign currency in 4Q19 resulted in a Ps.1.5 billion gain.

In FY2019 Income from Differences in quoted prices of gold and foreign currency totaled a Ps.3.1 billion gain (with income from foreign currency exchange standing out) compared to a Ps.1.4 billion loss in FY2018.

**6**
4Q19 Earnings<br> Release
DIFFERENCES<br> IN QUOTED PRICES OF GOLD<br> AND FOREIGN CURRENCY Variation
--- --- --- --- --- --- --- --- --- --- --- --- ---
In MILLION 4Q18 1Q19 2Q19 3Q19 4Q19 2018 2019 QoQ YoY
(1) Differences in<br> quoted prices of  gold and foreign currency 729 -51 333 1,496 1,281 -1,377 3,060 -14 % 76 %
Translation<br> of FX assets and liabilities to Pesos 354 -481 -129 332 282 -2,721 5 -15 % -20 %
Income<br> from foreign currency exchange 375 430 462 1,164 999 1,343 3,055 -14 % 166 %
(2) Net Income from<br> financial assets and liabilities at fair value through P&L -22 301 -12 735 224 213 1248 -70 % -
Income<br> from investment in derivative financing instruments -22 301 -12 735 224 213 1,248 -70 % -
(1) +(2) Total<br> Result from Differences in quoted prices of gold and foreign currency 707 250 321 2,231 1,505 -1,165 4,308 -33 % 113 %

All values are in US Dollars.

INTEREST<br> INCOME Change
In MILLION 4Q18 1Q19 2Q19 3Q19 4Q19 2018 2019 QoQ YoY
Interest on Cash and due<br> from Banks 15 31 35 86 66 25 218 -23 % 340 %
Interest from government<br> securities 7,898 9,515 14,951 19,026 8,933 17,510 52,425 -53 % 13 %
Interest from private<br> securities 2 1 0 379 957 176 1,337 153 % 47750 %
Interest on loans and<br> other financing
To the financial sector 546 494 355 375 411 1,229 1,635 10 % -25 %
Interest on overdrafts 2,442 1,872 1,739 3,351 6,970 5,632 13,932 108 % 185 %
Interest on documents 1,089 1,201 1,086 961 1,262 3,329 4,510 31 % 16 %
Interest on mortgages loans 1,795 1,310 1,673 1,471 2,233 4,260 6,687 52 % 24 %
Interest on pledged loans 148 129 124 129 126 582 508 -2 % -15 %
Interest on personal loans 5,676 5,785 6,005 6,162 6,418 20,719 24,370 4 % 13 %
Interest on credit cards loans 2,371 2,567 2,677 2,589 2,886 7,060 10,719 11 % 22 %
Interest on financial leases 57 44 43 28 29 164 144 4 % -49 %
Interest on other loans 1,447 1,124 1,029 1,018 1,813 4,474 4,984 78 % 25 %
Interest on Repos
From the BCRA 0 9 0 0 389 23 398 0 % 0 %
Other financial institutions 328 313 1,617 7 320 395 2,257 4471 % -2 %
Total Interest income 23,814 24,395 31,334 35,582 32,813 65,578 124,124 -8 % 38 %
Income from Interest<br> on loans 15,571 14,526 14,731 16,084 22,148 47,452 67,489 38 % 42 %

All values are in US Dollars.

The Bank’s 4Q19 interest expense totaled Ps.10.1 billion, decreasing 35% (Ps.5.4 billion) compared to the previous quarter and 12% (Ps.1.4 billion) compared to 4Q18.

In 4Q19, interest on deposits represented 93% of the Bank’s total interest expense, decreasing 34% or Ps.4.8 billion QoQ. This decrease can be traced to a 2,138 b.p. decline in the BADLAR rate and an 18% decrease in the average volume of time deposits. On a yearly basis, interest on deposits decreased 12% or Ps.1.3 billion (due to a 588 b.p. reduction in the BADLAR rate)

In 4Q19, interest on corporate bonds decreased 75% or Ps.587 million due to lower interest rates in the case of Series “C” notes and the cancelation of repurchased Series “B” notes.

In FY2019 interest expense totaled Ps.51.6 billion and was 99% higher than in FY2018.

**7**
4Q19 Earnings Release
INTEREST<br> EXPENSE Change
--- --- --- --- --- --- --- --- --- --- --- --- ---
In<br> MILLION 4Q18 1Q19 2Q19 3Q19 4Q19 2018 2019 QoQ YoY
Deposits
Interest<br> on checking accounts 491 118 52 105 27 633 302 -74 % -95 %
Interest<br> on saving accounts 140 97 153 113 181 349 544 60 % 29 %
Interest<br> on time deposits 10,013 10,372 13,368 13,969 9,168 22,247 46,877 -34 % -8 %
Interest<br> on other financing from BCRA and financial inst. 45 43 62 62 17 128 184 -73 % -62 %
Repos
Other<br> financial institutions 64 71 107 54 27 185 259 -50 % -58 %
Interest<br> on corporate bonds 478 452 470 787 200 1,507 1,909 -75 % -58 %
Interest<br> on subordinated bonds 267 280 311 386 430 832 1,407 11 % 61 %
Interest<br> on other financial liabilities 28 31 26 49 48 51 154 -2 % 71 %
Total<br> financial expense 11,526 11,464 14,549 15,525 10,098 25,932 51,636 -35 % -12 %
Expenses<br> from interest on deposits 10,644 10,587 13,573 14,187 9,376 23,229 47,723 -34 % -12 %

All values are in US Dollars.

As of 4Q19, the Bank’s net interest margin (including FX) was 21.1%, higher than the 19.1% posted in 3Q19 and the 14.9% in 4Q18.

As of 4Q19 Net Interest Margin (excluding FX) was 20.3%, higher than the 18.5% posted in 3Q19 and the 15.4% in 4Q18. This result shows the Bank’s ability to defend its margin.

In 4Q19 Net Interest Margin (Pesos) was 35.9%, higher than the 28.3% posted in 3Q19 and the 22.3% in 4Q18; meanwhile Net Interest Margin (USD) was 2.1%, higher than the 0.6% posted in 3Q19 and the 0.5% in 4Q18.

ASSETS<br> & LIABILITIES PERFORMANCE<br><br>(AR$) MACRO Consolidated
In MILLON $ 4Q18 **** **** 1Q19 **** **** 2Q19 **** **** 3Q19 **** **** 4Q19 **** ****
Yields & rates in<br> annualized nominal % AVERAGEBALANCE INT AVERAGEBALANCE INT AVERAGEBALANCE INT AVERAGEBALANCE INT AVERAGEBALANCE INT
Interest-earning<br> assets
Cash<br> and Deposits in Banks 31,969 0.0 % 32,270 0.0 % 34,030 0.0 % 24,551 0.0 % 32,758 0.0 %
Goverment & Securities<br> at fair value through P&L 1,355 35.1 % 1,715 14.9 % 1,438 9.5 % 2,375 -23.4 % 2,379 325.7 %
Loans<br> & Other Financing
Public<br> Sector 2,069 69.8 % 1,401 57.0 % 952 49.7 % 1,533 66.8 % 3,265 66.0 %
Financial<br> Sector 4,247 50.3 % 4,736 41.7 % 3,143 44.4 % 2,974 49.5 % 2,927 55.0 %
Private<br> Sector 123,050 45.2 % 122,286 43.5 % 116,892 46.0 % 124,450 46.4 % 160,933 49.4 %
Other<br> debt securities 52,738 60.0 % 71,886 54.1 % 92,118 64.9 % 112,092 68.7 % 52,400 74.7 %
Other<br> interest-earning assets 8,752 23.9 % 10,259 72.7 % 16,603 43.0 % 9,614 2.8 % 16,280 27.5 %
Total<br> interest-earning assets 224,180 41.7 % 244,553 41.9 % 265,176 46.3 % 277,589 49.3 % 270,942 49.7 %
Non<br> interest-earning assets 13,107 14,266 20,860 15,991 18,268
Total<br> Average Assets 237,287 258,819 286,036 293,580 289,210
Interest-bearing<br> liabilities
Deposits
Public<br> Sector 14,323 35.5 % 16,375 33.0 % 16,069 34.8 % 12,752 34.8 % 11,246 26.5 %
Financial<br> Sector 0 0.0 % 0 0.0 % 0 0.0 % 0 0.0 % 0 0.0 %
Private<br> Sector 112,920 32.0 % 122,198 29.7 % 137,077 34.4 % 146,717 34.2 % 119,869 27.9 %
BCRA<br> and other financial institutions 492 36.3 % 898 19.4 % 513 47.7 % 510 46.7 % 238 25.0 %
Corporate<br> bonds 6,359 29.8 % 6,189 29.6 % 6,161 30.6 % 6,083 51.3 % 5,568 14.3 %
Subordinated<br> bonds 0 0.0 % 0 0.0 % 0 0.0 % 0 0.0 % 0 0.0 %
Other<br> interest-bearing liabilities 453 56.1 % 723 40.4 % 1,133 38.6 % 366 46.7 % 526 31.7 %
Total<br> int.-bearing liabilities 134,547 32.4 % 146,383 30.1 % 160,953 34.4 % 166,428 35.0 % 137,447 27.3 %
Total<br> non int.-bearing liab. & equity 46,582 52,988 60,779 61,607 73,282
Total<br> Average Liabilities & Equity 181,129 199,371 221,732 228,035 210,729
Assets<br> Performance 23,554 25,293 30,590 34,497 33,946
Liabilities<br> Performance 10,980 10,857 13,808 14,692 9,448
Net<br> Interest Income 12,574 14,436 16,782 19,805 24,498
Total<br> interest-earning assets 224,180 244,553 265,176 277,589 270,942
Net<br> Interest Margin (NIM) 22.3 % 23.9 % 25.4 % 28.3 % 35.9 % 
**8**
4Q19 Earnings Release
ASSETS<br> & LIABILITIES PERFORMANCE<br><br> (USD) MACRO Consolidated
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
In<br> MILLON $ 4Q18 1Q19 2Q19 3Q19 4Q19
Yields<br> & rates in annualized nominal % AVERAGE BALANCE INT AVERAGE BALANCE INT AVERAGE BALANCE INT AVERAGE BALANCE INT AVERAGE BALANCE INT
Interest-earning<br> assets
Cash<br> and Deposits in Banks 36,428 0.2 % 41,863 0.3 % 51,749 0.3 % 61,991 0.6 % 60,103 0.4 %
Goverment<br> & Securities at fair value through P&L 342 -9.3 % 209 34.9 % 279 8.6 % 284 18.2 % 255 24.9 %
Loans<br> & Other Financing
Financial<br> Sector 489 6.5 % 486 7.5 % 489 9.0 % 292 10.9 % 301 11.9 %
Private<br> Sector 43,259 5.8 % 47,627 6.1 % 55,590 6.0 % 59,228 6.1 % 40,255 11.2 %
Other<br> debt securities 86 9.2 % 31 13.1 % 0 0.0 % 0 0.0 % 1,644 0.0 %
Other<br> interest-earning assets 2,162 0.2 % 2,943 -0.1 % 3,084 -0.1 % 3,357 -0.2 % 5,059 -0.1 %
Total<br> interest-earning assets 82,766 3.1 % 93,159 3.4 % 111,191 3.2 % 125,152 3.2 % 107,617 4.5 %
Non<br> interest-earning assets 3,231 2,724 93 3,960 0
Total Average<br> Assets 85,997 95,883 111,284 129,112 107,617
Interest-bearing<br> liabilities
Deposits
Public<br> Sector 534 0.0 % 873 0.0 % 1,517 0.0 % 1,818 0.0 % 1,570 0.0 %
Private<br> Sector 53,499 1.9 % 60,155 2.0 % 71,749 2.3 % 76,150 2.1 % 53,667 1.4 %
BCRA<br> and other financial institutions 2,455 4.5 % 2,468 4.9 % 2,117 4.7 % 2,612 5.2 % 2,629 5.6 %
Subordinated<br> bonds 15,024 7.1 % 15,868 7.2 % 17,821 7.0 % 20,564 7.4 % 24,120 7.1 %
Other<br> interest-bearing liabilities 1 0.0 % 9 0.0 % 1 0.0 % 1 0.0 % 0 0.0 %
Total<br> int.-bearing liabilities 71,513 3.0 % 79,373 3.1 % 93,205 3.2 % 101,145 3.3 % 81,986 3.2 %
Total<br> non int.-bearing liab. 16,873 16,378 19,027 23,812 20,378
Total Average<br> Liabilities 88,386 95,751 112,232 124,957 102,364
Assets<br> Performance 645 775 887 1,010 1,223
Liabilities<br> Performance 547 606 741 832 651
Net<br> Interest Income 98 169 146 178 572
Total<br> interest-earning assets 82,766 93,159 111,191 125,152 107,617
Net<br> Interest Margin (NIM) 0.5 % 0.7 % 0.5 % 0.6 % 2.1 %

In 4Q19 Banco Macro’s net fee income totaled Ps.4.1 billion, 10% or Ps.374 million higher than in 3Q19 and 32% or Ps.1 billion higher than the same period of last year.

In FY2019 net fee income of 14.6billion increased 31% compared to FY2018.

In the quarter, fee income totaled Ps.4.6 billion, 10% or Ps.422 million higher than in 3Q19. Fees charged on deposit accounts, credit card fees and ATM transaction fees stand out; with a 9%, 12% and 50% increase respectively QoQ. On a yearly basis, fee income increased 36% or Ps.1.2 billion.

In the quarter, total fee expenses increased 12% or Ps.48 million. On a yearly basis, fee expenses increased 100% or Ps.218 million.

NET<br> FEE INCOME Change
In<br> MILLION 4Q18 1Q19 2Q19 3Q19 4Q19 2018 2019 QoQ YoY
Fees<br> charged on deposit accounts 1,435 1,522 1,445 1,590 1,738 5,314 6,295 9 % 21 %
Credit<br> card fees 700 757 727 883 989 2,853 3,356 12 % 41 %
Corporate<br> services fees 336 332 404 496 529 1,039 1,761 7 % 57 %
ATM<br> transactions fees 52 158 180 232 349 52 919 50 % 571 %
Insurance<br> fees 179 225 233 230 264 719 952 15 % 47 %
Financial<br> agent fees (Provinces) 229 172 209 217 230 619 828 6 % 0 %
Debit<br> card fees 200 181 192 229 206 572 808 -10 % 3 %
Credit<br> related fees 138 147 147 172 155 540 621 -10 % 12 %
Mutual<br> funds & securities fees 16 21 94 51 62 84 228 22 % 288 %
AFIP<br> & Collection services 44 27 28 30 27 93 112 -10 % -39 %
ANSES<br> fees 12 8 9 8 11 33 36 38 % -8 %
Total<br> fee income 3,341 3,550 3,668 4,138 4,560 11,918 15,916 10 % 36 %
Total<br> fee expense 217 241 279 387 435 756 1,342 12 % 100 %
Net<br> fee income 3,124 3,309 3,389 3,751 4,125 11,162 14,574 10 % 32 %

All values are in US Dollars.

In 4Q19 Net Income from financial assets and liabilities at fair value through profit or loss totaled Ps.2.6 billion, increasing 292% or Ps.1.9 billion compared to 3Q19. Profit from government securities stands out with a Ps.2.4 billion increase related to the mark to market of TC21 Government Bond.

In FY2019 Net Income from financial assets and liabilities at fair value through profit or loss totaled Ps.5.3 billion, 402% higher than in FY2018.

**9**
4Q19 Earnings Release
NET<br> INCOME FROM FINANCIAL ASSETS AND LIABILITIES AT FAIR VALUE THROUGH PROFIT OR LOSS Change
--- --- --- --- --- --- --- --- --- --- --- --- ---
In<br> MILLION 4Q18 1Q19 2Q19 3Q19 4Q19 2018 2019 QoQ YoY
Profit<br> or loss from government securities 165 165 39 -328 2,022 474 1,898 - 1125 %
Profit<br> or loss from private securities 168 149 145 136 266 285 696 96 % 58 %
Profit<br> or loss from investment in derivative financing instruments -22 301 -12 735 224 213 1,248 -70 % -
Profit<br> or loss from other financial assets 65 51 49 12 51 171 163 325 % -22 %
Profit<br> or loss from investment in equity instruments 4 1,401 9 0 24 46 1,434 - 500 %
Profit<br> or loss from the sale of financial assets at fair value -16 -91 -97 102 -7 -123 -93 - -
Income<br> from financial assets at fair value through profit or loss 364 1,976 133 657 2,580 1,066 5,346 293 % 610 %
Profit<br> or loss from derivative financing instruments 0 -2 0 2 0 0 0 -100 % 0 %
Income<br> from financial liabilities at fair value through profit or loss 0 -2 0 2 0 2 0 -100 % 0 %
NET<br> INCOME FROM FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS 364 1,974 133 659 2,580 1,066 5,346 292 % 610 %

All values are in US Dollars.

In the quarter Other Operating Income totaled Ps.926 million, 9% or Ps.147 million lower than in 3Q19. On a yearly basis Other Operating Income increased 69% or Ps.378 million.

In FY2019 Other Operating Income totaled Ps.6.1 billion, 117% higher than in FY2018.

OTHER<br> OPERATING INCOME Change
IN<br> MILLION 4Q18 1Q19 2Q19 3Q19 4Q19 2018 2019 QoQ YoY
Credit<br> and debit cards 2 37 56 44 41 2 178 -7 % 1950 %
Lease<br> of safe deposit boxes 62 72 80 91 111 220 354 22 % 79 %
Other<br> service related fees 220 258 171 321 261 885 1,011 -19 % 19 %
Sale<br> of real estate and other non-financial assets 24 4 165 0 38 161 207 - 58 %
Other<br> adjustments and interest from other receivables 69 133 168 165 183 222 649 11 % 165 %
Initial<br> recognition of loans -51 28 42 -8 34 53 96 - -
Sale<br> of property, plant and equipment 36 2 3 5 -10 39 0 - -
Others 186 2,582 299 455 268 1,235 3,604 -41 % 44 %
Other<br> Operating Income 548 3,116 984 1,073 926 2,817 6,099 -14 % 69 %

All values are in US Dollars.

In 4Q19 Banco Macro’s administrative expenses plus employee benefits totaled Ps.8.3 billion, 13% or Ps.941 million higher than the previous quarter. On a yearly basis administrative expenses plus employee benefits increased 58% or Ps.3 billion, due to higher expenses related to employee benefits (salary increases and severance pay) and maintenance and conservation fees.

In FY2019 administrative expenses plus employee benefits increased 64% compared with FY2018.

Employee benefits increased 12% or Ps.549 million QoQ (the main drivers for the increase were higher salaries and higher social security contributions (Ps.605 million), related to the last leg of the salary increases agreed with the Union). On a yearly basis Employee benefits increased 59% or Ps.1.9 billion.

As of 4Q19, the accumulated efficiency ratio reached 32.3%, improving from the 33.2% posted in 3Q19. In 4Q19 expenses (employee benefits + G&A expenses + depreciation and impairment of assets) increased 13%, while income (net interest income + net fee income + differences in quoted prices of gold and foreign currency + other operating income + net income from financial assets at fair value through profit or loss – (Turnover Tax + Insurance on deposits)) increased 17% compared to 3Q19.

In FY2019 the accumulated efficiency ratio reached 32.3% improving from the 37.9% posted in FY2018.

**10**
4Q19 Earnings Release
PERSONNEL & ADMINISTRATIVE EXPENSES MACRO Consolidated Change
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
In MILLION $ 4Q18 1Q19 2Q19 3Q19 4Q19 2018 2019 QoQ YoY
Employee benefits 3,124 3,134 4,917 4,430 4,979 10,308 17,460 12 % 59 %
Remunerations 2,350 2,299 3,004 3,155 3,612 7,781 12,070 14 % 54 %
Social Security Contributions 453 476 1,555 672 820 1,516 3,523 22 % 81 %
Compensation and bonuses 235 278 276 491 415 752 1,460 -15 % 77 %
Employee services 86 81 82 112 132 259 407 18 % 53 %
Administrative Expenses 2,105 2,095 2,300 2,902 3,294 6,826 10,591 14 % 56 %
Taxes 236 266 300 322 354 901 1,242 10 % 50 %
Maintenance, conservation fees 293 280 316 335 496 910 1,427 48 % 69 %
Directors & statutory auditors fees 233 323 290 555 567 717 1,735 2 % 143 %
Security services 195 212 220 253 288 710 973 14 % 48 %
Electricity & Communications 201 208 235 242 289 593 974 19 % 44 %
Other professional fees 191 164 199 219 254 565 836 16 % 33 %
Rental agreements 105 53 48 38 41 330 180 8 % -61 %
Advertising & publicity 146 51 92 103 155 315 401 50 % 6 %
Personnel allowances 32 33 40 43 47 116 163 9 % 47 %
Stationary & Office Supplies 16 18 19 27 20 55 84 -26 % 25 %
Insurance 24 21 25 24 30 60 100 25 % 25 %
Hired administrative services 5 4 4 -5 1 19 4 -120 % -80 %
Other 428 462 512 746 752 1,535 2,472 1 % 76 %
Total Administrative Expenses 5,229 5,229 7,217 7,332 8,273 17,134 28,051 13 % 58 %
Total Employees 9,096 9,028 8,978 8,893 8,768
Branches 473 471 464 462 463
Efficiency ratio 39.1 % 35.8 % 28.6 % 38.3 % 31.4 %
Accumulated efficiency ratio 37.6 % 37.9 % 28.6 % 33.5 % 32.3 %

In 4Q19, Other Operating Expenses totaled Ps.4.6 billion, decreasing 31% or Ps.2 billion QoQ. Turnover Tax and Others stand out with a 24% (Ps.500 million) increase and a 63% (Ps.2.5 billion) decrease respectively QoQ. It should be noted that in this quarter no loss related to the reprofiling of short term debt is registered (as it was the case in 3Q19). On a yearly basis Other Operating Expenses increased 43% or Ps. 1.4 billion.

In FY2019 Other Operating Expenses totaled Ps.18.3 billion, 77% higher than in FY2018.

OTHER OPERATING EXPENSES MACRO Consolidated Change
MILLION $ 4Q18 1Q19 2Q19 3Q19 4Q19 2018 2019 QoQ YoY
Turnover Tax 1,749 1,855 1,831 2,115 2,615 5,814 8,416 24 % 50 %
Other provision charges 527 185 236 471 300 1,104 1,192 -36 % -43 %
Deposit Guarantee Fund Contributions 91 104 118 135 111 305 468 -18 % 22 %
Donations 18 35 37 36 136 86 244 278 % 656 %
Insurance claims 17 11 10 13 15 55 49 15 % -12 %
Others 811 914 1,717 3,864 1,411 2,939 7,906 -63 % 74 %
Other Operating Expenses 3,213 3,104 3,949 6,634 4,588 10,303 18,275 -31 % 43 %

In FY2019 Banco Macro's effective income tax rate was 16.3%, lower than the 30.6% effective tax rate of FY2018. During FY2019 and in accordance with applicable Income Tax Law and regulations and the evolution of Consumer Price Index the Bank decided to adjust income tax by inflation.

**11**
4Q19 Earnings Release

Financial Assets

Private sector financing

The volume of “core” financing to the private sector (including loans, financial trust and leasing portfolio) totaled Ps.211.6 billion, increasing 10% or Ps.18.7 billion QoQ and 22% or Ps.38.6 billion YoY.

Within commercial loans, growth was driven by Overdrafts and Others; with a 32% or Ps.9 billion and a 52% or Ps. 5.3 billion increase QoQ respectively.

The main growth in consumer lending was driven by credit card loans which grew 27% or Ps.9 billion QoQ.

In FY2019 Overdrafts, Others and Credit Card loans stand out with 120%, 43% and 123% increases respectively.

As of 4Q19, Banco Macro´s market share over private sector loans was 8.1%.

FINANCING TO THE PRIVATE SECTOR Change
In MILLION 1Q19 2Q19 3Q19 4Q19 QoQ YoY
Overdrafts 16,897 11,132 15,832 28,131 37,138 32 % 120 %
Discounted documents 24,218 26,250 21,380 21,669 19,657 -9 % -19 %
Mortgages loans 12,667 12,733 12,172 12,944 12,739 -2 % 1 %
Pledged loans 4,333 4,325 3,934 4,507 4,007 -11 % -8 %
Personal loans 56,413 57,095 56,459 56,200 55,588 -1 % -1 %
Credit Card loans 29,567 29,515 29,676 33,108 42,157 27 % 43 %
Others 19,717 23,393 24,766 23,633 21,819 -8 % 11 %
Interest 6,900 7,366 8,518 10,136 15,418 52 % 123 %
Total loan portfolio 170,712 171,809 172,737 190,328 208,523 10 % 22 %
Total loans in Pesos 125,374 117,783 119,172 136,488 170,920 25 % 36 %
Total loans in 45,338 54,026 53,565 53,840 37,603 -30 % -17 %
Financial trusts 1,384 1,373 985 1,371 1,937 41 % 40 %
Leasing 446 386 335 292 230 -21 % -48 %
Others 367 434 650 840 860 2 % 134 %
Total other financing 2,197 2,193 1,970 2,503 3,027 21 % 38 %
Total other financing in Pesos 1,787 1,578 1,017 1,500 1,997 33 % 12 %
Total other financing in 410 615 953 1,003 1,030 3 % 151 %
Total financing to the private sector 172,909 174,002 174,707 192,831 211,550 10 % 22 %
EOP FX (Pesos per ) 37.8083 43.3533 42.4483 57.5583 59.8950 4 % 58 %
financing / Financing to the private sector 26 % 31 % 31 % 28 % 18 %

All values are in US Dollars.

**12**
4Q19 Earnings Release

Public Sector Assets

In 4Q19, the Bank’s public sector assets (excluding LELIQs) to total assets ratio was 6.5%, higher than the 4.9% registered in the previous quarter, and higher than the 3.5% posted in 4Q18.

In 4Q19, a Ps.6 billion increase in Provincial loans stands out; also in 4Q19 a 10% or Ps.2 billion increase in Other government securities was experienced. Banco Macro’s strategy during the quarter was to reduce Leliq exposure (an 18% reduction was registered during the quarter) while allocating excess liquidity in loans and other financial instruments.

PUBLIC SECTOR ASSETS MACRO<br> Consolidated Change
In MILLION $ 4Q18 1Q19 2Q19 3Q19 4Q19 QoQ YoY
Leliqs 55,070 98,918 85,344 55,918 45,932 -18 % -17 %
Other 10,333 10,901 10,630 19,346 21,320 10 % 106 %
Government securities 65,403 109,819 95,974 75,264 67,252 -11 % 3 %
Provincial loans 1,685 1,197 976 340 6,310 1756 % 274 %
Loans 1,685 1,197 976 340 6,310 1756 % 274 %
Purchase of government bonds 75 - - - 114 - 52 %
Other receivables 75 - - - 114 - 52 %
TOTAL PUBLIC SECTOR ASSETS 67,163 111,016 96,950 75,604 73,676 -3 % 10 %
TOTAL PUBLIC SECTOR LIABILITIES 0 0 0 0 0 0 % 0 %
Net exposure 67,163 111,016 96,950 75,604 73,676 -3 % 10 %
TOTAL PUBLIC SECTOR ASSETS<br> (net of LEBAC/NOBAC/LELIQ) 12,093 12,098 11,606 19,686 27,744 41 % 129 %
TOTAL PUBLIC SECTOR ASSETS<br> (net of LEBAC/NOBAC/LELIQ)/TOTAL ASSETS 3.5 % 3.1 % 2.9 % 4.9 % 6.5 %

Funding

Deposits

Banco Macro’s deposit base totaled Ps.262.9 billion in 4Q19, increasing 1% or Ps.3.7 billion QoQ and increasing 10% or Ps.24.9 billion YoY and representing 78% of the Bank’s total liabilities.

On a quarterly basis, private sector deposits increased 3% or Ps.6.4 billion, while public sector deposits decreased 14% or Ps.2.8 billion.

The increase in private sector deposits was led by demand deposits, which increased 17% or Ps.18.5 billion, while time deposits decreased 11% or Ps.13.2 billion QoQ.

Within private sector deposits, peso deposits increased 2% or Ps.4.3 billion, while US dollar deposits decreased 6% or USD84 million.

As of 4Q19, Banco Macro´s market share over private sector deposits was 6.2%.

**13**
4Q19 Earnings Release
DEPOSITS Change
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
In MILLION 1Q19 2Q19 3Q19 4Q19 QoQ YoY
Public sector 19,312 28,153 23,479 20,348 17,560 -14 % -9 %
Financial sector 148 211 244 293 314 7 % 112 %
Private sector 218,497 244,247 260,534 238,558 244,991 3 % 12 %
Checking accounts 24,438 24,514 29,171 35,118 40,124 14 % 64 %
Savings accounts 68,696 66,673 78,759 77,195 90,728 18 % 32 %
Time deposits 121,102 148,833 147,711 119,279 106,068 -11 % -12 %
Other 4,261 4,227 4,893 6,966 8,071 16 % 89 %
Total 237,957 272,611 284,257 259,199 262,865 1 % 10 %
Pesos 166,599 187,633 191,751 178,842 183,183 2 % 10 %
Foreign Currency (Pesos) 71,358 84,978 92,507 80,357 79,682 -1 % 12 %
EOP FX (Pesos per ) 37.8083 43.3533 42.4483 57.5583 59.8950 4 % 58 %
Foreign Currency () 1,887 1,960 2,179 1,396 1,330 -5 % -30 %
Deposits / Total Deposits 30 % 31 % 33 % 31 % 30 %

All values are in US Dollars.

Banco Macro’s transactional deposits represent approximately 54% of its total deposit base as of 4Q19. These accounts are low cost and are not sensitive to interest rate increases.

Other sources of funds

In 4Q19, the total amount of other sources of funds increased 11% or Ps.12.4 billion compared to 3Q19. In 4Q19 Shareholder’s Equity increased 18% or Ps.13.4 billion due to the positive result registered in the quarter.

OTHER SOURCES OF FUNDS MACRO Consolidated Change
In MILLION $ 4Q18 1Q19 2Q19 3Q19 4Q19 QoQ YoY
Central Bank of Argentina 24 20 24 31 27 -13 % 13 %
Banks and international institutions 2,568 2,345 1,743 2,660 1,838 -31 % -28 %
Financing received from Argentine financial institutions 406 745 430 652 380 -42 % -6 %
Subordinated corporate bonds 15,288 17,836 17,192 23,726 24,312 2 % 59 %
Corporate bonds 6,377 6,314 6,193 6,008 5,525 -8 % -13 %
Shareholders' equity 54,636 62,087 62,735 76,374 89,806 18 % 64 %
Total other source of funds 79,299 89,345 88,317 109,451 121,888 11 % 54 % 
**14**
4Q19 Earnings Release

Liquid Assets

In 4Q19, the Bank’s liquid assets amounted to Ps.154.2 billion, showing a 3% or Ps.4.6 billion decrease QoQ, and a 13% or Ps.18.2 billion increase on a yearly basis.

In 4Q19, LELIQs own portfolio decreased 16% or Ps.9 billion, in line with the strategy adopted by the Bank to reduce its exposure to Central Bank Notes.

In 4Q19 Banco Macro’s liquid assets to total deposits ratio reached 59%.

LIQUID ASSETS MACRO Consolidated Change
In MILLION  $ 4Q18 1Q19 2Q19 3Q19 4Q19 QoQ YoY
Cash 74,766 75,309 96,427 96,609 100,680 4 % 35 %
Guarantees for compensating chambers 5,720 5,735 5,992 7,102 7,439 5 % 30 %
Call 405 178 990 150 100 -33 % -75 %
Leliq own portfolio 55,070 98,918 85,344 54,898 45,932 -16 % -17 %
Total 135,961 180,140 188,753 158,759 154,151 -3 % 13 %
Liquid assets to total deposits 57.1 % 66.1 % 66.4 % 61.0 % 59.0 %

Solvency

Banco Macro continued showing high solvency levels in 4Q19 with an integrated capital (RPC) of Ps.98.6 billion over a total capital requirement of Ps.29.6 billion. Banco Macro’s excess capital in 4Q19 was 233% or Ps.69 billion.

The regulatory capital ratio (as a percentage of risk-weighted assets- RWA) was 27.3% in 4Q19; TIER1 Ratio stands at 20%.

The Bank’s aim is to make the best use of this excess capital.

MINIMUM CAPITAL REQUIREMENT MACRO Consolidated Change
In MILLION $ 4Q18 1Q19 2Q19 3Q19 4Q19 QoQ YoY
Credit risk requirement 15,609 16,329 16,641 19,343 21,404 11 % 37 %
Market risk requirement 212 284 421 778 591 -24 % 179 %
Operational risk requirement 4,616 5,189 5,959 6,627 7,563 14 % 64 %
Total capital requirements 20,437 21,802 23,021 26,748 29,558 11 % 45 %
Ordinary Capital Level 1 (COn1) 52,285 58,520 59,406 69,629 83,090 19 % 59 %
Deductible concepts Level 1 (COn1) -3,047 -3,708 -4,160 -7,807 -10,637 36 % 249 %
Capital Level 2 (COn2) 16,875 19,092 18,740 24,972 26,113 33 % 38 %
Integrated capital - RPC (i) 66,113 73,903 73,986 86,793 98,566 14 % 49 %
Excess capital 45,676 52,101 50,965 60,045 69,009 15 % 51 %
Risk-weighted assets - RWA (ii) 249,781 266,581 281,700 327,312 361,678 10 % 45 %
Regulatory Capital ratio [(i)/(ii)] 26.5 % 27.7 % 26.3 % 26.5 % 27.3 %
Ratio TIER 1 [Capital Level 1/RWA] 19.7 % 20.6 % 19.6 % 18.9 % 20.0 %
RWA - (ii): Risk Weighted Assets, considering total capital requirements. 
**15**
4Q19 Earnings Release

Asset Quality

In 4Q19, Banco Macro’s non-performing to total financing ratio reached a level of 2.07%, up from 1.9% in 3Q19, and higher than the 1.91% posted in 4Q18.

Consumer portfolio non-performing loans improved 32b.p. while Commercial portfolio non-performing loans worsened 87b.p.(related to specific commercial clients among which Vicentin S.A stands out) in 4Q19.

The coverage ratio reached 123.08% in 4Q19. Write-offs over total loans totaled 0.27%.

The Bank is committed to continue working in this area to maintain excellent asset quality standards.

ASSET QUALITY MACRO Consolidated Change
In MILLION $ 4Q18 1Q19 2Q19 3Q19 4Q19 QoQ YoY
Commercial portfolio 71,202 68,794 72,524 88,833 104,123 17 % 46 %
Non-performing 917 618 575 414 1,390 236 % 52 %
Consumer portfolio 113,538 114,936 112,938 116,576 127,469 9 % 12 %
Non-performing 2,617 3,111 3,363 3,490 3,410 -2 % 30 %
Total portfolio 184,740 183,730 185,462 205,409 231,592 13 % 25 %
Non-performing 3,534 3,729 3,938 3,904 4,800 23 % 36 %
Commercial non-perfoming ratio 1.29 % 0.90 % 0.79 % 0.47 % 1.34 %
Consumer non-perfoming ratio 2.30 % 2.71 % 2.98 % 2.99 % 2.68 %
Total non-performing/ Total portfolio 1.91 % 2.03 % 2.12 % 1.90 % 2.07 %
Total allowances 4,161 4,446 4,573 4,847 5,909 22 % 42 %
Coverage ratio w/allowances 117.74 % 119.23 % 116.14 % 124.16 % 123.08 %
Write Offs 556 967 649 830 616 -26 % 11 %
Write Offs/ Total portfolio 0.30 % 0.53 % 0.35 % 0.40 % 0.27 % 
**16**
4Q19 Earnings Release

CER Exposure and Foreign Currency Position

CER EXPOSURE Change
In MILLION 4Q18 1Q19 2Q19 3Q19 4Q19 QoQ YoY
CER adjustable ASSETS
Private sector loans (*) 9,801 10,625 11,776 12,916 14,542 13 % 48 %
Government Securities 77 80 49 1,595 3,923 146 % 4995 %
Total CER adjustable assets 9,878 10,705 11,825 14,511 18,465 27 % 87 %
CER adjustable LIABILITIES
Deposits (*) 929 348 273 199 223 12 % -76 %
UVA Unemployment fund 267 335 458 530 557 5 % 109 %
Total CER adjustable liabilities 1,196 683 731 729 780 7 % -35 %
NET CER EXPOSURE 8,682 10,022 11,094 13,782 17,685 28 % 104 %

All values are in US Dollars.

(*) Includes Loans &TimeDeposits CER adjustable (UVAs)

FOREIGN CURRENCY POSITION Change
In MILLION 1Q19 2Q19 3Q19 4Q19 QoQ YoY
Cash and deposits in Banks 42,745 46,286 57,164 55,629 70,955 28 % 66 %
Cash 3,287 3,031 3,367 9,746 10,917 12 % 232 %
Central Bank of Argentina 25,617 33,803 36,741 19,732 34,065 73 % 33 %
Other financial institutions local and abroad 13,385 9,450 17,053 26,147 25,969 -1 % 94 %
Others 456 2 3 4 4 0 % -99 %
Net Income from financial instruments at fair value through P&L 388 298 380 237 247 4 % -36 %
Derivatives 3 1 0 0 0 0 % -100 %
Other financial assets 1,547 1,724 1,771 2,639 2,600 -1 % 68 %
Loans and other financing 46,040 54,891 54,591 54,793 38,984 -29 % -15 %
Other financial institutions 480 513 453 193 602 212 % 25 %
Non financial private sector & foreign residents 45,560 54,378 54,138 54,600 38,382 -30 % -16 %
Other debt securities 1,217 1,313 3,143 1,487 866 -42 % -29 %
Guarantees received 929 1,756 1,241 1,713 2,892 69 % 211 %
Investment in equity instruments 6 7 7 10 11 10 % 83 %
Investment in associates and joint ventures 0 1 0 -1 0 - -
Total Assets 92,875 106,277 118,297 116,507 116,555 0 % 25 %
Deposits 71,358 84,978 92,507 80,358 79,682 -1 % 12 %
Non financial public sector 2,295 2,102 2,807 2,772 3,990 44 % 74 %
Financial sector 100 167 163 220 230 5 % 130 %
Non financial private sector & foreign residents 68,963 82,709 89,537 77,366 75,462 -2 % 9 %
Derivatives 0 0 1 0 0 -100 % -100 %
Other liabilities from financial intermediation 2,619 3,749 3,457 4,947 5,248 6 % 100 %
Non-subordinated corporate bonds 2,599 2,541 1,924 2,872 2,046 -29 % -21 %
Subordinated corporate bonds 15,288 17,836 17,192 23,726 24,312 2 % 59 %
Other liabilities 35 43 43 61 24 -61 % -31 %
Total Liabilities 91,899 109,147 115,124 111,964 111,312 -1 % 21 %
NET FX POSITION (Pesos) 976 -2,870 3,173 4,543 5,243 15 % 437 %
EOP FX (Pesos per ) 37.8083 43.3533 42.4483 57.5583 59.8950 4 % 58 %
NET FX POSITION () 25.8 -66.2 74.7 78.9 87.5 11 % 239 %

All values are in US Dollars.

**17**
4Q19 Earnings Release

Relevant and RecentEvents

· BYMA Corporate Governance Trading Panel. In December 2019 Banco Macro was included in<br> BYMA’s special stock trading panel known as Corporate Governance Panel in which<br> it was invited to join. BYMA’s Corporate Governance Panel is a market segment formed<br> by companies who adhere to good corporate governance and transparency practices that<br> are additional to the standard regulatory requirements set forth by the Argentine legislation<br> and commit to the periodic monitoring thereof. Corporate Governance Panel standards are<br> aimed at improving the disclosure of information to investors when it comes to exercising<br> their rights or investing, strengthening the visibility of the Company and making it<br> more attractive for international investors.
· Repurchase of Class C Peso denominated Notes. During 4Q19 the Bank repurchased Class C Peso<br> denominated notes in the aggregate amount of Ps.44,000,000.
--- ---
· Repurchase of Class B peso denominated notes. During 4Q19, the Bank repurchased an aggregate<br> amount of Ps.48,271,000 of Class B peso denominated notes.
--- ---
· Interest Payment Class C Peso denominated Notes. In January 2020, the Bank paid quarterly<br> interest on Class C Peso denominated notes in the amount of Ps.422,061,230.88.
--- ---
· Class C peso denominated notes cancellation. In February 2020, the Bank cancelled class<br> C peso denominated notes in the aggregate amount of Ps.794,500,000; reducing the total<br> outstanding amount to Ps.2,413,000.
--- ---

Regulatory Changes

· Inflation Adjustment. In February 2019, through Communication “A” 6651 the Central<br> Bank of Argentina (BCRA) established that financial institutions should restate financial<br> statements in accordance with IAS 29 starting from January 1^st^, 2020. As of<br> the date of this report the Bank has quantified the effects of the application of Expected<br> losses of IFRS 9 “Financial Instruments” and IAS 29 “Financial Reporting<br> in Hyperinflationary Economies”. As of December 31, 2019 equity would be approximately<br> Ps.104.7 billion, and net income for the twelve months ended December 31, 2019 would<br> be ~Ps.18.789 billion.
· Income Tax. Inflation Adjustment. Fiscal Reform Law 27,430 as amended by Law 27,468 established<br> the terms and conditions for inflation adjustments for tax purposes for fiscal years<br> starting from January 2018. The following table sets forth reconciliation between the<br> income tax charge and the amount payable resulting of the application of the income tax<br> rate.
--- ---
Ps. '000 FY2019 FY2018
--- --- --- --- --- --- ---
Income before Income tax 48,769,109 22,694,533
Statutory Income Tax rate 30 % 30 %
Income tax 14,630,733 6,808,360
Differences in Income Tax (Inflation<br> Adj) -6,662,034 156,395
Total Income Tax 7,968,699 6,964,755

In FY2019 Banco Macro's effective income tax rate was 16.3%, lower than the 30.6% effective tax rate of FY2018.

**18**
4Q19 Earnings Release
· Limits to LELIQs Daily Auction. In January 2020 through Communication “C” 85996<br> the Central Bank of Argentina (BCRA) established that financial institutions cannot auction<br> LELIQs in an amount higher than: any available balance (above minimum reserve requirements)<br> deposited at the BCRA checking account, plus REPOS with the BCRA, plus the amount of<br> LELIQs maturing on any given day.
--- ---
· Loan<br> Loss Provisions. In December 2019 through Communication “A” 6851 the Central<br> Bank of Argentina (BCRA) established that effective January 2020:
--- ---
o Financial Institutions will continue<br> to inform Minimum loan loss provisions as established by the Central Bank of Argentina,<br> notwithstanding the regulatory framework established by the adoption of I.F.R.S
--- ---
o Financial Institutions should reduce<br> from their integrated capital (RPC) the difference between the minimum regulatory loan<br> loss provision as established by the Central Bank of Argentina in Minimum Loan Loss Provisions<br> and the one calculated in accordance with I.F.R.S.9 Expected Losses.
--- ---
o Loans classified as category 6 (irrecoverable<br> according to Central Bank’s rules) will be absorbed by category 5 (Irrecoverable)<br> and will be provisioned as loans without preferred guarantees.
--- ---
· Minimum Cash Reserve Requirements. In January 2020 the Central Bank of Argentina through<br> Communication “A” 6858 established that as of February 1^st^, 2020:
--- ---
o For financial institutions included<br> in Group A: reserve requirements will be reduced in an amount equal up to a 30% of the<br> peso financing given to SMEs at a maximum fixed interest rate of 40%. This reduction<br> cannot be higher than 2% of reserve requirements.
--- ---
· UVA Time Deposits. In January 2020 through communication “A” 6871 the Central<br> Bank of Argentina (BCRA) established the creation of UVA (CER) peso denominated time<br> deposits. These deposits will have a minimum maturity period of 90 days, but can be withdrawn<br> early (30 days). The minimum interest rate can’t be below 1%. In the case of withdrawal<br> early withdrawal, the resulting rate would be 70% of the average of the last five business<br> days shortest LELIQ at the time of incorporation
--- --- 
**19**
4Q19 Earnings Release
QUARTERLY BALANCE SHEET MACRO Consolidated Change
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
IN MILLIONS $ 4Q18 1Q19 2Q19 3Q19 4Q19 QoQ YoY
ASSETS
Cash and deposits in Banks 74,766 75,309 96,427 96,609 100,680 0 % 40 %
Cash 10,697 8,770 9,247 15,478 19,512 67 % 75 %
Central Bank of Argentina 50,211 57,079 70,116 54,967 55,158 -22 % 9 %
Other local & foreign entities 13,402 9,456 17,062 26,160 26,007 53 % 178 %
Other 456 4 2 4 3 100 % -99 %
Debt securities at fair value through profit & loss 2,635 2,964 1,980 1,496 5,675 -24 % -15 %
Derivatives 17 42 17 56 51 229 % -21 %
Repo Transactions - - - - 1,088 0 % 0 %
Other financial assets 3,000 3,170 4,100 4,080 4,549 0 % 23 %
Loans & other receivables 178,875 177,717 178,851 194,354 220,005 9 % 12 %
Non Financial Public Sector 1,776 1,304 1,105 471 6,451 -57 % -76 %
Financial Sector 5,574 3,784 4,024 2,423 3,941 -40 % -48 %
Non Financial private sector and foreign 171,525 172,629 173,722 191,460 209,613 10 % 14 %
Other debt securities 64,585 109,048 97,381 76,570 64,534 -21 % 70 %
Financial assets in guarantee 6,756 7,300 7,157 10,710 10,673 50 % 72 %
Investments in equity instruments 52 1,504 1,510 1,512 1,536 0 % 2808 %
Investments in other companies (subsidiaries and joint ventures) 109 124 124 135 146 9 % 59 %
Property, plant and equipment 9,003 9,849 10,112 10,691 11,002 6 % 35 %
Intangible assets 1,401 1,548 1,869 2,049 2,123 10 % 79 %
Deferred income tax assets 47 60 77 2,776 4,939 3505 % 4770 %
Other non financial assets 833 1,078 986 1,178 670 19 % -47 %
Non-current assets held for sale 804 583 441 441 739 0 % 247 %
TOTAL ASSETS 342,883 390,296 401,032 402,657 428,410 0 % 29 %
LIABILITIES
Deposits 237,954 272,611 284,259 259,202 262,865 -9 % 22 %
Non Financial Public Sector 19,354 28,192 23,565 20,438 17,560 -13 % 2 %
Financial Sector 148 211 244 293 314 20 % 95 %
Non Financial private sector and foreign 218,452 244,208 260,450 238,471 244,991 -8 % 24 %
Liabilities at fair value through profit & loss - - - - - 0 % 0 %
Derivatives 1 111 11 147 769 1236 % -31 %
Repo Transactions 165 - 278 2,167 1,003 679 % 100 %
Other financial liabilities 15,319 16,622 14,833 16,711 22,170 13 % 31 %
Financing received from Central Bank and Other<br> Financial Institutions 2,998 3,111 2,198 3,345 2,246 52 % 3 %
Issued Corporate Bonds 6,377 6,314 6,193 6,008 5,525 -3 % -8 %
Current income tax liabilities 2,947 4,567 4,149 4,508 8,136 9 % 114 %
Subordinated corporate bonds 15,288 17,836 17,192 23,726 24,312 38 % 41 %
Provisions 1,046 970 1,026 1,329 1,456 30 % 67 %
Deferred income tax liabilities 275 404 475 1 2 -100 % -99 %
Other non financial liabilities 5,875 5,662 7,682 9,137 10,119 19 % 82 %
TOTAL LIABILITIES 288,245 328,208 338,296 326,281 338,603 -4 % 25 %
SHAREHOLDERS' EQUITY
Capital Stock 670 670 670 639 639 -5 % -5 %
Issued Shares premium 12,429 12,428 12,428 12,428 12,430 0 % 0 %
Adjustment to Shareholders' Equity 5 5 5 5 5 0 % 0 %
Reserves 21,996 21,996 34,807 34,837 34,837 0 % 50 %
Retained earnings 3,265 18,994 -211 -211 -211 - -
Other accumulated comprehensive income 543 649 658 1,141 1,306 73 % 39 %
Net income for the period / fiscal year 15,729 7,343 14,376 27,534 40,800 92 % 163 %
Shareholders' Equity attributable to parent company 54,636 62,085 62,733 76,373 89,806 22 % 50 %
Shareholders' Equity attributable to non controlling interest 1 - 1 1 1 0 % 0 %
TOTAL SHAREHOLDERS' EQUITY 54,637 62,087 62,736 76,375 89,807 22 % 50 % 
**20**
4Q19 Earnings Release
ANNUAL BALANCE SHEET MACRO Consolidated Change
--- --- --- --- --- --- --- ---
IN MILLIONS $ 2018 2019 FY19/FY18
ASSETS
Cash and deposits in Banks 74,766 100,680 0 %
Cash 10,697 19,512 67 %
Central Bank of Argentina 50,211 55,158 -22 %
Other local & foreign entities 13,402 26,007 53 %
Other 456 3 100 %
Debt securities at fair value through profit & loss 2,635 5,675 -24 %
Derivatives 17 51 229 %
Repo Transactions - 1,088 0 %
Other financial assets 3,000 4,549 0 %
Loans & other receivables 178,875 220,005 9 %
Non Financial Public Sector 1,776 6,451 -57 %
Financial Sector 5,574 3,941 -40 %
Non Financial private sector and foreign 171,525 209,613 10 %
Other debt securities 64,585 64,534 -21 %
Financial assets in guarantee 6,756 10,673 50 %
Investments in equity instruments 52 1,536 0 %
Investments in other companies (subsidiaries and joint ventures) 109 146 9 %
Property, plant and equipment 9,003 11,002 6 %
Intangible assets 1,401 2,123 10 %
Deferred income tax assets 47 4,939 3505 %
Other non financial assets 833 670 19 %
Non-current assets held for sale 804 739 0 %
TOTAL ASSETS 342,883 428,410 0 %
LIABILITIES
Deposits 237,954 262,865 -9 %
Non Financial Public Sector 19,354 17,560 -13 %
Financial Sector 148 314 20 %
Non Financial private sector and foreign 218,452 244,991 -8 %
Liabilities at fair value through profit & loss - - 0 %
Derivatives 1 769 1236 %
Repo Transactions 165 1,003 679 %
Other financial liabilities 15,319 22,170 13 %
Financing received from Central Bank and Other Financial Institutions 2,998 2,246 52 %
Issued Corporate Bonds 6,377 5,525 -3 %
Current income tax liabilities 2,947 8,136 9 %
Subordinated corporate bonds 15,288 24,312 38 %
Provisions 1,046 1,456 30 %
Deferred income tax liabilities 275 2 -100 %
Other non financial liabilities 5,875 10,119 19 %
TOTAL LIABILITIES 288,245 338,603 -4 %
SHAREHOLDERS' EQUITY
Capital Stock 670 639 -5 %
Issued Shares premium 12,429 12,430 0 %
Adjustment to Shareholders' Equity 5 5 0 %
Reserves 21,996 34,837 0 %
Retained earnings 3,265 -211 -
Other accumulated comprehensive income 543 1,306 73 %
Net income for the period / fiscal year 15,729 40,800 92 %
Shareholders' Equity attributable to parent company 54,636 89,806 22 %
Shareholders' Equity attributable to non controlling interest 1 1 0 %
TOTAL SHAREHOLDERS' EQUITY 54,637 89,807 22 % 
**21**
4Q19 Earnings Release
INCOME STATEMENT MACRO Consolidated Change
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
IN MILLION $ 4Q18 1Q19 2Q19 3Q19 4Q19 QoQ YoY
Interest Income 23,814 24,395 31,334 35,582 32,813 -8 % 38 %
Interest Expense 11,526 11,464 14,549 15,525 10,098 -35 % -12 %
Net Interest Income 12,288 12,931 16,785 20,057 22,715 13 % 85 %
Fee income 3,341 3,550 3,668 4,138 4,560 10 % 36 %
Fee expense 217 241 279 387 435 12 % 100 %
Net Fee Income 3,124 3,309 3,389 3,751 4,125 10 % 32 %
Subtotal (Net Interest Income + Net Fee Income) 15,412 16,240 20,174 23,808 26,840 13 % 74 %
Net Income from financial instruments  at Fair Value Through Profit & Loss 364 1,974 133 659 2,580 292 % 609 %
Result from assets at amortised cost 1 -17 - -1 54 - 5300 %
Difference in quoted prices of gold and foreign currency 729 -51 333 1,497 1,281 -14 % 76 %
Other operating income 548 3,116 984 1,073 926 -14 % 69 %
Provision for loan losses 836 2,154 848 825 1,991 141 % 138 %
Net Operating Income 16,218 19,108 20,776 26,211 29,690 13 % 83 %
Personnel expenses 3,124 3,134 4,917 4,430 4,979 12 % 59 %
Administrative expenses 2,105 2,095 2,300 2,902 3,294 14 % 56 %
Depreciation and impairment of assets 215 290 317 366 397 8 % 85 %
Other operating expense 3,213 3,104 3,949 6,634 4,588 -31 % 43 %
Operating Income 7,561 10,484 9,293 11,879 16,432 38 % 117 %
Income from associates and joint ventures 33 26 613 17 25 47 % -24 %
Net Income before income tax on cont. operations 7,594 10,510 9,906 11,896 16,457 38 % 117 %
Income tax on continuing operations 2,351 3,166 2,874 -1,263 3,192 - 36 %
Net Income from continuing operations 5,243 7,344 7,032 13,159 13,265 1 % 153 %
Net Income for the period 5,243 7,344 7,032 13,159 13,265 1 % 153 %
Net Income of the period attributable to parent company 5,243 7,343 7,033 13,158 13,266 1 % 153 %
Net income of the period attributable to non-controlling interests - 1 -1 1 -1 - -
Other Comprehensive Income -276 106 10 481 166 -65 % -160 %
Foreign currency translation differences in financial statements conversion -119 211 -35 533 74 -86 % -162 %
Profits or losses from financial assets measured at fair value  through other comprehensive income (FVOCI)  (IFRS 9(4.1.2)(a) -157 -105 45 -52 92 - -
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD 4,967 7,450 7,042 13,640 13,431 -2 % 170 %
Total Comprehensive Income attributable to parent Company 4,967 7,449 7,043 13,638 13,432 -2 % 170 %
Total Comprehensive Income attributable to non-controlling interests - 1 -1 1 -1 - - 
**22**
4Q19 Earnings Release
ANNUAL INCOME STATEMENT MACRO Consolidated Change
--- --- --- --- --- --- --- ---
IN MILLION $ 2018 2019 FY19/FY18
Interest Income 65,578 124,124 89 %
Interest Expense 25,932 51,636 99 %
Net Interest Income 39,646 72,488 83 %
Fee income 11,918 15,916 34 %
Fee expense 756 1,342 78 %
Net Fee Income 11,162 14,574 31 %
Subtotal (Net Interest Income + Net Fee Income) 50,808 87,062 71 %
Net Income from financial instruments at<br> Fair Value Through Profit & Loss 1,066 5,346 402 %
Result from assets at amortised cost -5 36 -
Difference in quoted prices of gold and<br> foreign currency -1,376 3,060 -322 %
Other operating income 2,817 6,099 117 %
Provision for loan losses 2,706 5,818 115 %
Net Operating Income 50,604 95,785 89 %
Personnel expenses 10,308 17,460 69 %
Administrative expenses 6,826 10,591 55 %
Depreciation and impairment of assets 737 1,370 86 %
Other operating expense 10,303 18,275 77 %
Operating Income 22,430 48,088 114 %
Income from associates and joint ventures 265 681 157 %
Net Income before income tax on cont. operations 22,695 48,769 115 %
Income tax on continuing operations 6,965 7,969 -
Net Income from continuing operations 15,730 40,800 159 %
Net Income for the period 15,730 40,800 159 %
Net Income of the period attributable to<br> parent company 15,729 40,800 159 %
Net income of the period attributable to<br> non-controlling interests 1 - -
Other Comprehensive Income 339 763 125 %
Foreign currency translation differences<br> in financial statements conversion 733 783 7 %
Profits or losses from financial assets<br> measured at fair value  through other comprehensive income (FVOCI)  (IFRS 9(4.1.2)(a) - - -
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD 16,069 41,563 159 %
Total Comprehensive Income attributable<br> to parent Company 16,068 41,562 159 %
Total Comprehensive Income attributable<br> to non-controlling interests 1 - - 
**23**
4Q19 Earnings Release
QUARTERLY<br> ANNUALIZED RATIOS MACRO<br> Consolidated
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
4Q18 1Q19 2Q19 3Q19 4Q19
Profitability<br> & performance
Net<br> interest margin 16.9 % 17.2 % 18.0 % 21.2 % 27.6 %
Net interest<br> margin adjusted (exc. FX) 16.0 % 17.3 % 17.7 % 19.7 % 26.3 %
Net fee<br> income ratio 12.0 % 23.1 % 12.3 % 10.4 % 8.0 %
Efficiency<br> ratio 35.8 % 28.6 % 38.3 % 31.1 % 30.0 %
Net fee<br> income as % of A&G Expenses 33.7 % 80.9 % 32.2 % 33.4 % 26.8 %
Return on<br> average assets 6.4 % 8.4 % 7.1 % 12.4 % 13.3 %
Return on<br> average equity 38.8 % 50.0 % 44.4 % 74.9 % 62.9 %
Liquidity
Loans as<br> a percentage of total deposits 75.2 % 65.2 % 62.9 % 75.0 % 83.7 %
Liquid assets<br> as a percentage of total deposits 57.1 % 66.1 % 66.0 % 61.0 % 59.0 %
Capital
Total equity<br> as a percentage of total assets 15.9 % 15.9 % 15.6 % 19.0 % 21.0 %
Regulatory capital as % of<br> APR 26.5 % 27.7 % 26.3 % 26.5 % 27.3 %
Asset<br> Quality
Allowances<br> over total loans 2.3 % 2.4 % 2.5 % 2.4 % 2.6 %
Non-performing<br> financing as a percentage of total financing 1.9 % 2.0 % 2.1 % 1.9 % 2.1 %
Coverage<br> ratio w/allowances 117.7 % 119.2 % 116.1 % 124.2 % 123.1 %
Cost of Risk 1.9 % 4.9 % 1.9 % 1.7 % 3.8 %
ACCUMULATED<br> ANNUALIZED RATIOS MACRO<br> Consolidated
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
4Q18 1Q19 2Q19 3Q19 4Q19
Profitability<br> & performance
Net<br> interest margin 14.9 % 17.2 % 17.6 % 19.1 % 21.1 %
Net interest<br> margin adjusted (exc. FX) 15.4 % 17.3 % 17.5 % 18.5 % 20.3 %
Net fee<br> income ratio 16.7 % 23.1 % 17.7 % 14.8 % 12.7 %
Efficiency<br> ratio 37.9 % 28.6 % 33.5 % 32.5 % 31.7 %
Net fee<br> income as % of A&G Expenses 44.0 % 80.9 % 52.8 % 45.6 % 40.1 %
Return on<br> average assets 5.8 % 8.4 % 7.7 % 9.4 % 10.4 %
Return on<br> average equity 30.7 % 50.0 % 47.0 % 57.3 % 59.0 %
Liquidity
Loans as<br> a percentage of total deposits 121.1 % 65.2 % 62.9 % 75.0 % 83.7 %
Liquid assets<br> as a percentage of total deposits 57.1 % 66.1 % 66.0 % 61.0 % 59.0 %
Capital
Total equity<br> as a percentage of total assets 15.9 % 15.9 % 15.6 % 19.0 % 21.0 %
Regulatory capital as % of<br> APR 26.5 % 27.7 % 26.3 % 26.5 % 27.3 %
Asset<br> Quality
Allowances<br> over total loans 2.3 % 2.4 % 2.5 % 2.4 % 2.6 %
Non-performing<br> financing as a percentage of total financing 1.9 % 2.0 % 2.1 % 1.9 % 2.1 %
Coverage<br> ratio w/allowances 117.7 % 119.2 % 116.1 % 124.2 % 123.1 %
Cost of Risk 1.7 % 4.9 % 3.4 % 2.8 % 3.1 % 
**24**
4Q19 Earnings Release
ACCUMULATED ANNUAL RATIOS MACRO Consolidated
--- --- --- --- --- --- ---
2018 2019
Profitability & performance
Net interest margin 14.9 % 21.1 %
Net interest margin adjusted (exc. FX) 15.4 % 20.3 %
Net fee income ratio 16.7 % 12.7 %
Efficiency ratio 37.9 % 31.7 %
Net fee income as % of A&G Expenses 44.0 % 40.1 %
Return on average assets 5.8 % 10.4 %
Return on average equity 30.7 % 59.0 %
Liquidity
Loans as a percentage of total deposits 75.2 % 83.7 %
Liquid assets as a percentage of total deposits 57.1 % 59.0 %
Capital
Total equity as a percentage of total assets 15.9 % 21.0 %
Regulatory capital as % of APR 26.5 % 27.3 %
Asset Quality
Allowances over total loans 2.3 % 2.6 %
Non-performing financing as a percentage of total financing 1.9 % 2.1 %
Coverage ratio w/allowances 117.7 % 123.1 %
Cost of Risk 1.7 % 3.1 % 
**25**

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: February 19, 2020

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

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