6-K
Macro Bank Inc. (BMA)
SECURITIES AND EXCHANGE COMMISSION
Washington**,D.C. 20549**
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16 UNDER THE
SECURITIES EXCHANGE ACT OF 1934
August 1, 2024
Commission File Number: 001-32827
MACRO BANK INC.
(Translation of registrant’s name intoEnglish)
Avenida Eduardo Madero 1182
Ciudad Autónoma de Buenos Aires C1106 ACY
Tel: 54 11 5222 6500
(Address of registrant’s principal executiveoffices)
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.
| Form 20-F | x | Form 40-F | ¨ |
|---|
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 SA
Condensed interim Financial Statements as of March 31, 2024 together with the reports on review of interim Financial Statements
| BANCO MACRO SA |
|---|
| CONDENSED INTERIM FINANCIAL STATEMENTS AS OF MARCH 31, 2024 |
| CONTENT |
| Cover sheet |
| Condensed consolidated interim Financial Statements |
| Condensed consolidated interim statement of financial position |
| Condensed consolidated interim statement of income |
| Condensed consolidated interim statement of other comprehensive income |
| Condensed consolidated interim statement of changes in shareholders’ equity |
| Condensed consolidated interim statement of cash flows |
| Notes to the condensed consolidated interim Financial Statements |
| Note 1: Corporate information |
| Note 2: Operations of the Bank |
| Note 3: Basis for the preparation of these Financial Statements and applicable accounting standards |
| Note 4: Contingent transactions |
| Note 5: Debt securities at fair value through profit or loss |
| Note 6: Other financial assets |
| Note 7: Loans and other financing |
| Note 8: Loss allowance for expected credit losses on credit exposures not measured at fair value through profit or loss |
| Note 9: Other debt securities |
| Note 10: Fair value quantitative and qualitative disclosures |
| Note 11: Business combinations |
| Note 12: Investments in associates and joint arrangements |
| Note 13: Other non-financial assets |
| Note 14: Related parties |
| Note 15: Deposits |
| Note 16: Other financial liabilities |
| Note 17: Provisions |
| Note 18: Other non-financial liabilities |
| Note 19: Analysis of financial assets to be recovered and financial liabilities to be settled |
| Note 20: Disclosures by operating segment |
| Note 21: Income tax |
| Note 22: Commissions income |
| Note 23: Differences in quoted prices of gold and foreign currency |
| Note 24: Other operating income |
| Note 25: Employee benefits |
| Note 26: Administrative expenses |
| Note 27: Other operating expenses |
| Note 28: Additional disclosures in the statement of cash flows |
| Note 29: Capital stock |
| BANCO MACRO SA |
| --- |
| CONDENSED INTERIM FINANCIAL STATEMENTS AS OF MARCH 31, 2024 |
| CONTENT (contd.) |
| Notes to the condensed consolidated interim Financial Statements (contd.) |
| Note 30: Earnings per share – Dividends |
| Note 31: Deposit guarantee insurance |
| Note 32: Restricted assets |
| Note 33: Trust activities |
| Note 34: Compliance with CNV regulations |
| Note 35: Accounting items that identify the compliance with minimum cash requirements |
| Note 36: Penalties applied to the Bank and summary proceedings initiated by the BCRA |
| Note 37: Corporate bonds issuance |
| Note 38: Off balance sheet transactions |
| Note 39: Tax and other claims |
| Note 40: Restriction on dividends distribution |
| Note 41: Capital management, corporate governance transparency policy and risk management |
| Note 42: Changes in the Argentine macroeconomic environment and financial and capital markets |
| Note 43: Events after reporting period |
| Note 44: Accounting principles – explanation added for translation into English |
| Condensed consolidated exhibits |
| Exhibit B: Classification of loans and other financing by situation and collateral received |
| Exhibit C: Concentration of loans and financing facilities |
| Exhibit D: Breakdown of loans and other financing by terms |
| Exhibit F: Change of property, plant and equipment |
| Exhibit G: Change in intangible assets |
| Exhibit H: Deposit concentration |
| Exhibit I: Breakdown of financial liabilities for residual terms |
| Exhibit J: Changes in provisions |
| Exhibit L: Foreign currency amounts |
| Exhibit Q: Breakdown of statement of income |
| Exhibit R: Value adjustment for credit losses – Allowances for uncollectibility risk |
| Condensed separate interim Financial Statements |
| Condensed separate interim Financial Statements |
| Notes to the condensed separate interim Financial Statements |
| Condensed separate exhibits |
| Reports |
| Review report on condensed consolidated interim Financial Statements |
| Review report on condensed separate interim Financial Statements |
BANCO MACRO SA
| 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 (Argentine regulatory agency of business associations): 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 MARCH 31, 2024 AND DECEMBER 31, 2023 | ||||||
| (Translation of the Financial Statements originally issued in Spanish – See Note 44) | ||||||
| (Figures stated in thousands of pesos in constant currency) | ||||||
| Items | Notes | Exhibits | 03/31/2024 | 12/31/2023 | ||
| --- | --- | --- | --- | --- | --- | --- |
| ASSETS | ||||||
| Cash and deposits in banks | 10 | 1,149,471,536 | 1,824,170,723 | |||
| Cash | 340,203,859 | 602,480,860 | ||||
| Central Bank of Argentina | 451,327,319 | 782,287,420 | ||||
| Other local and foreign entities | 357,446,165 | 439,317,478 | ||||
| Other | 494,193 | 84,965 | ||||
| Debt securities at fair value through profit or loss | 5 and 10 | 4,332,994,812 | 2,656,588,170 | |||
| Derivative financial instruments | 10 | 57,581,453 | 19,928,075 | |||
| Repo transactions | 10 | 279,193,344 | 933,357,661 | |||
| Other financial assets | 6, 8 and 10 | R | 228,230,854 | 305,338,273 | ||
| Loans and other financing | 7, 8 and 10 | B, C, D and R | 2,500,584,654 | 2,780,228,296 | ||
| Non-financial public sector | 2,817,424 | 7,151,596 | ||||
| Other financial entities | 19,637,132 | 15,109,236 | ||||
| Non-financial private sector and foreign residents | 2,478,130,098 | 2,757,967,464 | ||||
| Other debt securities | 8, 9 and 10 | R | 487,432,217 | 654,693,190 | ||
| Financial assets delivered as guarantee | 10 and 32 | 170,194,553 | 201,493,758 | |||
| Current income tax assets | 21 | 1,032,604 | 1,330,893 | |||
| Equity instruments at fair value through profit or loss | 10 | 3,318,120 | 4,872,886 | |||
| Investments in associates and joint arrangements | 12 | 2,163,240 | 2,554,996 | |||
| Property, plant and equipment | F | 542,982,918 | 540,967,793 | |||
| Intangible assets | G | 110,470,972 | 113,975,130 | |||
| Deferred income tax assets | 21 | 1,263,374 | 1,509,465 | |||
| Other non-financial assets | 13 | 67,602,081 | 83,062,393 | |||
| Non-current assets held for sale | 63,549,035 | 63,512,648 | ||||
| TOTAL ASSETS | 9,998,065,767 | 10,187,584,350 |
| | Jorge Pablo Brito |
| --- | --- | | 1 | Chairperson | | CONDENSED CONSOLIDATED INTERIM STATEMENT OF FINANCIAL POSITION | | --- | | AS OF MARCH 31, 2024 AND DECEMBER 31, 2023 | | (Translation of the Financial Statements originally issued in Spanish – See Note 44) | | (Figures stated in thousands of pesos in constant currency) | | Items | Notes | Exhibits | 03/31/2024 | | 12/31/2023 | | | --- | --- | --- | --- | --- | --- | --- | | LIABILITIES | | | | | | | | Deposits | 10 and 15 | H and I | | 5,035,760,917 | | 5,110,022,614 | | Non-financial public sector | | | | 517,845,898 | | 283,685,577 | | Financial sector | | | | 13,371,241 | | 30,605,533 | | Non-financial private sector and foreign residents | | | | 4,504,543,778 | | 4,795,731,504 | | Liabilities at fair value through profit or loss | 10 | I | | 19,867,094 | | 20,962,446 | | Derivative financial instruments | 10 | I | | 5,950,433 | | 4,302,846 | | Repo transactions | 10 | I | | 20,856,886 | | 35,784,780 | | Other financial liabilities | 10 and 16 | I | | 474,250,449 | | 567,811,773 | | Financing received from the BCRA and other financial institutions | 10 | I | | 19,743,387 | | 30,019,635 | | Issued corporate bonds | 10 and 37 | I | | 67,178,933 | | 89,250,730 | | Current income tax liabilities | 21 | | | 319,763,735 | | 324,294,904 | | Subordinated corporate bonds | 10 and 37 | I | | 353,562,657 | | 497,665,193 | | Provisions | 17 | J and R | | 11,756,978 | | 13,257,060 | | Deferred income tax liabilities | 21 | | | 59,920,664 | | 69,354,198 | | Other non-financial liabilities | 18 | | | 249,078,573 | | 324,751,703 | | TOTAL LIABILITIES | | | | 6,637,690,706 | | 7,087,477,882 | | SHAREHOLDERS’ EQUITY | | | | | | | | Capital stock | 29 | | | 639,413 | | 639,413 | | Non-capital contributions | | | | 12,429,781 | | 12,429,781 | | Capital adjustments | | | | 866,848,912 | | 866,848,912 | | Earnings reserved | | | | 1,267,024,498 | | 1,267,024,498 | | Unappropriated retained earnings | | | | 891,406,193 | | 924,592 | | Accumulated other comprehensive income | | | | 46,344,907 | | 61,051,279 | | Net income of the period / fiscal year | | | | 275,419,727 | | 890,481,601 | | Net shareholders’ equity attributable to controlling interests | | | | 3,360,113,431 | | 3,099,400,076 | | Net shareholders’ equity attributable to non-controlling interests | | | | 261,630 | | 706,392 | | TOTAL SHAREHOLDERS’ EQUITY | | | | 3,360,375,061 | | 3,100,106,468 | | TOTAL SHAREHOLDERS’ EQUITY AND LIABILITIES | | | | 9,998,065,767 | | 10,187,584,350 |
Notes 1 to 44 to the condensed consolidated interim Financial Statements and exhibits B to D, F to J, L, Q and R are an integral part of the condensed consolidated interim Financial Statements.
| | Jorge Pablo Brito |
| --- | --- | | 2 | Chairperson | | CONDENSED CONSOLIDATED INTERIM STATEMENT OF INCOME | | --- | | FOR THE THREE MONTH PERIODS ENDED MARCH 31, 2024 AND 2023 | | (Translation of the Financial Statements originally issued in Spanish – See Note 44) | | (Figures stated in thousands of pesos in constant currency) | | Items | Notes | Exhibits | Quarter ended<br><br> 03/31/2024 | | | Quarter ended<br><br> 03/31/2023 | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | Interest income | | Q | | 714,764,195 | | | 886,738,250 | | | Interest expense | | Q | | (547,249,362 | ) | | (507,937,356 | ) | | Net interest income | | | | 167,514,833 | | | 378,800,894 | | | Commissions income | 22 | Q | | 84,190,514 | | | 94,222,747 | | | Commissions expense | | Q | | (10,129,797 | ) | | (8,767,761 | ) | | Net commissions income | | | | 74,060,717 | | | 85,454,986 | | | Subtotal (Net interest income plus Net commissions income) | | | | 241,575,550 | | | 464,255,880 | | | Net gain from measurement of financial instruments at fair value through profit or loss | | Q | | 1,272,438,237 | | | 35,664,116 | | | Profit from sold or derecognized assets at amortized cost | | | | 21,317 | | | 232 | | | Differences in quoted prices of gold and foreign currency | 23 | | | 80,591,819 | | | 142,243,750 | | | Other operating income | 24 | | | 44,350,195 | | | 22,170,085 | | | Credit loss expense on financial assets | | | | (18,857,427 | ) | | (13,492,348 | ) | | Net operating income | | | | 1,620,119,691 | | | 650,841,715 | | | Employee benefits | 25 | | | (133,391,711 | ) | | (91,025,551 | ) | | Administrative expenses | 26 | | | (68,909,628 | ) | | (45,188,578 | ) | | Depreciation and amortization of fixed assets | | F and G | | (24,284,457 | ) | | (18,981,293 | ) | | Other operating expenses | 27 | | | (139,583,636 | ) | | (92,454,019 | ) | | Operating income | | | | 1,253,950,259 | | | 403,192,274 | | | Loss from associates and joint arrangements | 12 | | | (213,855 | ) | | (852,159 | ) | | Loss on net monetary position | | | | (888,993,638 | ) | | (342,824,588 | ) | | Income before tax on continuing operations | | | | 364,742,766 | | | 59,515,527 | | | Income tax on continuing operations | 21.c) | | | (89,507,301 | ) | | (21,594,982 | ) | | Net income from continuing operations | | | | 275,235,465 | | | 37,920,545 | | | Net income of the period | | | | 275,235,465 | | | 37,920,545 | | | Net income of the period attributable to controlling interests | | | | 275,419,727 | | | 37,868,540 | | | Net (loss) / income of the period attributable to non-controlling interest | | | | (184,262 | ) | | 52,005 | |
| | Jorge Pablo Brito |
| --- | --- | | 3 | Chairperson | | CONSOLIDATED EARNINGS PER SHARE | | --- | | FOR THE THREE MONTH PERIODS ENDED MARCH 31, 2024 AND 2023 | | (Translation of the Financial Statements originally issued in Spanish – See Note 44) | | (Figures stated in thousands of pesos in constant currency) | | Items | Quarter ended <br> 03/31/2024 | | Quarter ended <br> 03/31/2023 | | | --- | --- | --- | --- | --- | | Net profit attributable to parent’s shareholders | | 275,419,727 | | 37,868,540 | | Plus: Potential dilutive effect inherent to common shares | | | | | | Net profit attributable to parent’s shareholders adjusted for dilution | | 275,419,727 | | 37,868,540 | | Weighted average of outstanding common shares of the period | | 639,413 | | 639,413 | | Plus: Weighted average of additional common shares with dilutive effects | | | | | | Weighted average of outstanding common shares of the period adjusted for dilution | | 639,413 | | 639,413 | | Basic earnings per share (in pesos) | | 430.7384 | | 59.2239 |
| | Jorge Pablo Brito |
| --- | --- | | 4 | Chairperson |
CONDENSED CONSOLIDATED INTERIM STATEMENT OF OTHER COMPREHENSIVEINCOME
FOR THE THREE MONTH PERIODS ENDED MARCH 31, 2024 AND 2023
(Translation of the Financial Statements originally issued in Spanish – See Note 44)
(Figures stated in thousands of pesos in constant currency)
| Items | Notes | Exhibits | Quarter ended<br><br> 03/31/2024 | Quarter ended<br><br> 03/31/2023 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Net income of the period | 275,235,465 | 37,920,545 | ||||||||
| Items of Other Comprehensive Income that will be reclassified to profit or loss of the period | ||||||||||
| Foreign currency translation differences from Financial Statements conversion | (14,063,350 | ) | (822,130 | ) | ||||||
| Foreign currency translation differences of the period | (14,063,350 | ) | (822,130 | ) | ||||||
| Profit or loss from financial instruments measured at fair value through other comprehensive income (FVOCI) (IFRS 9(4.1.2)(a)) | (643,022 | ) | (2,402,157 | ) | ||||||
| Profit or loss of the period from financial instruments at fair value through other comprehensive income (FVOCI) | Q | 6,996,632 | (7,293,993 | ) | ||||||
| Adjustment for reclassification of the period | (9,095,229 | ) | 3,522,537 | |||||||
| Income tax | 21.c) | 1,455,575 | 1,369,299 | |||||||
| Total other comprehensive loss that will be reclassified to profit or loss of the period | (14,706,372 | ) | (3,224,287 | ) | ||||||
| Total other comprehensive loss | (14,706,372 | ) | (3,224,287 | ) | ||||||
| Total comprehensive income of the period | 260,529,093 | 34,696,258 | ||||||||
| Total comprehensive income attributable to controlling interests | 260,713,355 | 34,644,253 | ||||||||
| Total comprehensive (loss) / income attributable to non-controlling interests | (184,262 | ) | 52,005 |
Notes 1 to 44 to the condensed consolidated interim Financial Statements and exhibits B to D, F to J, L, Q and R are an integral part of the condensed consolidated interim Financial Statements.
| Jorge Pablo Brito | |
|---|---|
| 5 | Chairperson |
CONDENSED CONSOLIDATED INTERIM STATEMENT OF CHANGES IN SHAREHOLDERS’EQUITY
FOR THE THREE MONTH PERIOD ENDED MARCH 31, 2024
(Translation of the Financial Statements originally issued in Spanish – See Note 44)
(Figures stated in thousands of pesos in constant currency)
| Capital<br> <br><br> stock | Non-capital<br><br> contributions | Other<br> Comprehensive<br><br> Income | Earnings<br> Reserved | |||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Changes | Notes | Outstandingshares | Additionalpaid-in capital | Capitaladjustments | Accumulatedforeign currencytranslation difference from FinancialStatementsconversion | Other | Legal | Other | Unappropriatedretained earnings | Totalcontrollinginterests | Totalnon-controllinginterests | Total Equity | ||||||||||||||||
| Restated amount at<br> the beginning of the fiscal year | 639,413 | 12,429,781 | 866,848,912 | 16,921,591 | 44,129,688 | 519,629,920 | 747,394,578 | 891,406,193 | 3,099,400,076 | 706,392 | 3,100,106,468 | |||||||||||||||||
| Total comprehensive income of<br> the period | ||||||||||||||||||||||||||||
| - Net<br> income of the period | 275,419,727 | 275,419,727 | (184,262 | ) | 275,235,465 | |||||||||||||||||||||||
| - Other comprehensive loss of the period | (14,063,350 | ) | (643,022 | ) | (14,706,372 | ) | (14,706,372 | ) | ||||||||||||||||||||
| - Other<br> changes | (260,500 | ) | (260,500 | ) | ||||||||||||||||||||||||
| Amount at the end of the<br> period | 639,413 | 12,429,781 | 866,848,912 | 2,858,241 | 43,486,666 | 519,629,920 | 747,394,578 | 1,166,825,920 | 3,360,113,431 | 261,630 | 3,360,375,061 |
CONDENSED CONSOLIDATED INTERIM STATEMENT OF CHANGES IN SHAREHOLDERS’EQUITY
FOR THE THREE MONTH PERIOD ENDED MARCH 31, 2023
(Translation of the Financial Statements originally issued in Spanish – See Note 44)
(Figures stated in thousands of pesos in constant currency)
| Capital<br> <br><br> stock | Non-capital<br><br> contributions | Other<br> Comprehensive <br><br> Income | Earnings<br> Reserved | ||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Changes | Notes | Outstanding<br><br> shares | Additional<br><br> paid-in <br><br> capital | Capital<br><br> adjustments | Accumulated<br><br> foreign <br><br> currency<br><br> translation<br><br> difference <br><br> from Financial<br><br> Statements<br><br> conversion | Other | Legal | Other | Unappropriated<br><br> retained <br><br> earnings | Total<br> <br><br> controlling<br><br> interests | Total<br> non-<br><br> controlling<br><br> interests | Total<br> <br> Equity | |||||||||||||||
| Restated amount at<br> the beginning of the fiscal year | 639,413 | 12,429,781 | 866,848,912 | 2,125,031 | (1,976,834 | ) | 478,987,599 | 856,497,096 | 203,856,604 | 2,419,407,602 | 399,884 | 2,419,807,486 | |||||||||||||||
| Total comprehensive income of<br> the period | |||||||||||||||||||||||||||
| - Net<br> income of the period | 37,868,540 | 37,868,540 | 52,005 | 37,920,545 | |||||||||||||||||||||||
| - Other comprehensive loss of the period | (822,130 | ) | (2,402,157 | ) | (3,224,287 | ) | (3,224,287 | ) | |||||||||||||||||||
| Amount at the end of the<br> period | 639,413 | 12,429,781 | 866,848,912 | 1,302,901 | (4,378,991 | ) | 478,987,599 | 856,497,096 | 241,725,144 | 2,454,051,855 | 451,889 | 2,454,503,744 |
Notes 1 to 44 to the condensed consolidated interim Financial Statements and exhibits B to D, F to J, L, Q and R are an integral part of the condensed consolidated interim Financial Statements.
| Jorge Pablo Brito | |
|---|---|
| 6 | Chairperson |
CONDENSED CONSOLIDATED INTERIM STATEMENT OF CASH FLOWS
FOR THE THREE MONTH PERIODS ENDED MARCH 31, 2024 AND 2023
(Translation of the Financial Statements originally issued in Spanish – See Note 44)
(Figures stated in thousands of pesos in constant currency)
| Items | Notes | 03/31/2024 | 03/31/2023 | |||||
|---|---|---|---|---|---|---|---|---|
| Cash flows from operating activities | ||||||||
| Income of the period before income tax | 364,742,766 | 59,515,527 | ||||||
| Adjustment for the total monetary effect of the period | 888,993,638 | 342,824,588 | ||||||
| Adjustments to obtain cash flows from operating activities: | ||||||||
| Amortization and depreciation | 24,284,457 | 18,981,293 | ||||||
| Credit loss expense on financial assets | 18,857,427 | 13,492,348 | ||||||
| Difference in quoted prices of foreign currency | (33,988,309 | ) | (101,281,063 | ) | ||||
| Other adjustments | (561,067,564 | ) | 259,588,924 | |||||
| Net increase / (decrease) from operating assets: | ||||||||
| Debt securities at fair value through profit or loss | (1,558,361,369 | ) | (116,516,133 | ) | ||||
| Derivative financial instruments | (37,653,378 | ) | 200,790 | |||||
| Repo transactions | 654,164,317 | 140,679,974 | ||||||
| Loans and other financing | ||||||||
| Non-financial public sector | 4,334,172 | 4,951,886 | ||||||
| Other financial entities | (4,527,896 | ) | (2,824,127 | ) | ||||
| Non-financial private sector and foreign residents | 259,137,834 | 104,122,821 | ||||||
| Other debt securities | 30 | 141,417,339 | 516,857,234 | |||||
| Financial assets delivered as guarantee | 31,299,205 | (867,353 | ) | |||||
| Equity instruments at fair value through profit or loss | 1,554,766 | (196,961 | ) | |||||
| Other assets | 93,478,218 | (45,446,968 | ) | |||||
| Net increase / (decrease) from operating liabilities: | ||||||||
| Deposits | ||||||||
| Non-financial public sector | 234,160,321 | (88,385,881 | ) | |||||
| Financial sector | (17,234,292 | ) | (395,106 | ) | ||||
| Non-financial private sector and foreign residents | (291,187,726 | ) | (347,869,123 | ) | ||||
| Liabilities at fair value through profit or loss | (1,095,352 | ) | 7,123,201 | |||||
| Derivative financial instruments | 1,647,587 | 378,219 | ||||||
| Repo transactions | (14,927,894 | ) | 17,401,532 | |||||
| Other liabilities | (169,251,138 | ) | (63,763,293 | ) | ||||
| Income tax payments | (1,170,031 | ) | (12,371,789 | ) | ||||
| Total cash from operating activities (A) | 27,607,098 | 706,200,540 | ||||||
| Jorge Pablo Brito | ||||||||
| --- | --- | |||||||
| 7 | Chairperson |
CONDENSED CONSOLIDATED INTERIM STATEMENT OF CASH FLOWS
FOR THE THREE MONTH PERIODS ENDED MARCH 31, 2024 AND 2023
(Translation of the Financial Statements originally issued in Spanish – See Note 44)
(Figures stated in thousands of pesos in constant currency)
| Items | Notes | 03/31/2024 | 03/31/2023 | |||||
|---|---|---|---|---|---|---|---|---|
| Cash flows from investing activities | ||||||||
| Payments: | ||||||||
| Acquisition of PPE, intangible assets and other assets | (19,510,370 | ) | (20,234,891 | ) | ||||
| Other payments related to investing activities | (450,669 | ) | ||||||
| Total cash used in investing activities (B) | (19,961,039 | ) | (20,234,891 | ) | ||||
| Cash flows from financing activities | ||||||||
| Payments: | ||||||||
| Dividends | 30 | (110,373 | ) | |||||
| Non-subordinated corporate bonds | (2,854,329 | ) | (48,683 | ) | ||||
| Financing from local financial entities | (5,576,438 | ) | ||||||
| Subordinated corporate bonds | (204,631 | ) | ||||||
| Other payments related to financing activities | (1,503,126 | ) | (1,629,334 | ) | ||||
| Collections / Incomes: | ||||||||
| Non-subordinated corporate bonds | 297,410 | |||||||
| Financing from local financial entities | 6,250,097 | |||||||
| Total cash used in financing activities (C) | (10,044,266 | ) | 4,664,859 | |||||
| Effect of exchange rate fluctuations (D) | 61,331,826 | 160,813,272 | ||||||
| Monetary effect on cash and cash equivalents (E) | (643,273,272 | ) | (686,213,421 | ) | ||||
| Net (decrease) / increase in cash and cash equivalents (A+B+C+D+E) | (584,339,653 | ) | 165,230,359 | |||||
| Cash and cash equivalents at the beginning of the fiscal year | 28 | 2,099,171,469 | 3,540,874,459 | |||||
| Cash and cash equivalents at the end of the period | 28 | 1,514,831,816 | 3,706,104,818 |
Notes 1 to 44 to the condensed consolidated interim Financial Statements and exhibits B to D, F to J, L, Q and R are an integral part of the condensed consolidated interim Financial Statements.
| Jorge Pablo Brito | |
|---|---|
| 8 | Chairperson |
NOTES TO THE CONDENSED CONSOLIDATED INTERIMFINANCIAL STATEMENTS
AS OF MARCH 31, 2024
(Translation of Financial Statements originally issued in Spanish – See Note 44)
(Figures stated in thousands of pesos in constant currency)
| 1. | CORPORATE INFORMATION |
|---|
Banco Macro SA (hereinafter, the “Bank”) is a business corporation (sociedad anónima), organized in the Argentine Republic that offers traditional banking products and services to companies, including those companies operating in regional economies as well as to individuals, thus strengthening its goal to be a multiservice bank. In addition, through its subsidiaries, the Bank performs transactions as a trustee agent, manager and administrator of mutual funds and renders stock exchange services, electronic payment services and granting of guarantees.
Macro Compañía Financiera SA was created in 1977, as a non-banking financial institution. In May 1988, it received the authorization to operate as a commercial bank and was incorporated as Banco Macro SA. Subsequently, as a result of the merger process with other entities, it adopted other names (among them, Banco Macro Bansud SA) and since August 2006, Banco Macro SA.
The Bank’s shares are publicly listed on Bolsas y Mercados Argentinos (BYMA) since November 1994 and as from March 24, 2006 they are listed on the New York Stock Exchange (NYSE). Additionally, on October 15, 2015, they were authorized to be listed on the Mercado Abierto Electrónico SA (MAE).
Since 1994, Banco Macro SA’s market strategy has mainly focused on the regional areas outside the Autonomous City of Buenos Aires (CABA, for its acronym in Spanish). Following this strategy, in 1996, Banco Macro SA started the process to acquire entities and assets and liabilities during the privatization of provincial and other banks.
During 2023, 2022, 2021 and 2020, the Bank in conjunction with other entities of the argentine financial system made contributions in the company Play Digital SA for a total amount of 977,225 (not restated), reaching an equity interest of 9.1886%. In addition, the Bank, through its subsidiary Banco BMA SAU, indirectly owns an interest of 1.4342%, consequently, the interest at a consolidated level amounts to 10.6228%. The company’s purpose is to develop and market a payment solution linked to bank accounts held by financial system users in order to bring significant improvement to their payment experience.
On May 18, 2023, Banco Macro SA acquired 100% of Macro Agro SAU (formerly known as Comercio Interior SAU) capital stock at USD 5,218,800 payable with the proceeds of this company’s dividends. The main purpose of this company is grain brokerage. For further information see also Note 11.
Additionally, on November 2, 2023, the Board of Directors of the Central Bank of Argentina (BCRA, for its acronym in Spanish), authorized the acquisition by Banco Macro SA of 100% of the capital stock of Banco Itaú Argentina SA, Itaú Asset Management SA and Itaú Valores SA. For further information see also Note 11.
On May 22, 2024, the Board of Directors approved the issuance of these condensed consolidated interim Financial Statements.
| 2. | OPERATIONS OF THE BANK |
|---|---|
| 2.1 | Agreement with the Misiones Provincial Government |
| --- | --- |
The Bank and the Misiones Provincial Government entered into a special-relationship agreement whereby the Bank was appointed, for a five-year term since January 1, 1996, as the Provincial Government’s exclusive financial agent as well as revenue collection and obligation payment agent.
On November 25, 1999, December 28, 2006 and October 1, 2018, extensions to such agreement were agreed upon, making it currently effective through December 31, 2029.
As of March 31, 2024 and December 31, 2023, the deposits held by the Misiones Provincial Government with the Bank amounted to 94,688,779 and 69,484,699 (including 6,841,938 and 7,905,283 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.
9
NOTES TO THE CONDENSED CONSOLIDATED INTERIMFINANCIAL STATEMENTS
AS OF MARCH 31, 2024
(Translation of Financial Statements originally issued in Spanish – See Note 44)
(Figures stated in thousands of pesos in constant currency)
As of March 31, 2024 and December 31, 2023, the deposits held by the Salta Provincial Government with the Bank amounted to 80,910,901 and 99,964,508 (including 10,555,369 and 13,315,896, 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 March 31, 2024 and December 31, 2023, the deposits held by the Jujuy Provincial Government with the Bank amounted to 54,330,174 and 26,958,667 (including 6,921,715 and 8,335,212, related to court deposits), respectively.
| 2.4 | Agreement with the Tucumán Provincial Government |
|---|
The Bank acts as an exclusive financial agent and as revenue collection and obligation payment agent of the Tucumán Provincial Government, the Municipality of San Miguel de Tucumán and the Municipality of Yerba Buena. The services agreements with the Provincial and Municipal Governments are effective through years 2031, 2028 and 2025, respectively. As established in the original agreement, the service agreement with the Municipality of San Miguel de Tucumán was extended until 2028.
As of March 31, 2024 and December 31, 2023, 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 131,392,396 and 64,433,984 (including 26,760,553 and 34,211,160, related to court deposits), respectively.
Additionally, the Bank granted loans to the Tucumán Provincial Government and the Municipalities of San Miguel de Tucumán and Yerba Buena as of March 31, 2024 and December 31, 2023 for an amount of 57,661 and 3,455,314, 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 in accordance with the accounting framework established by the BCRA, in its Communiqué “A” 6114 as supplemented. Except for the exceptions established by the BCRA, which are explained in the following paragraph, such framework is based on International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB) and adopted by the Argentine Federation of Professionals Councils in Economic Sciences (FACPCE, for its acronym in Spanish). The abovementioned international standards include the IFRS, the International Accounting Standards (IAS) and the interpretations developed by the IFRS Interpretations Committee (IFRIC) or former IFRIC (SIC).
The transitory exceptions and regulatory guidelines established by BCRA to the application of effective IFRS, that affect the preparation of these condensed consolidated interim Financial Statements are as follows:
| a) | According to Communiqué “A” 6114, as supplemented, and in the convergence process through<br>IFRS, the BCRA established that since fiscal years beginning on or after January 1, 2020, financial institutions defined as “Group<br>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 public<br>sector established by BCRA Communiqué “A” 6847. As of the date of issuance of these condensed consolidated interim<br>Financial Statements, the Bank is in the process of quantifying the effect of the full application of the abovementioned standard. |
|---|
10
NOTES TO THE CONDENSED CONSOLIDATED INTERIMFINANCIAL STATEMENTS
AS OF MARCH 31, 2024
(Translation of Financial Statements originally issued in Spanish – See Note 44)
(Figures stated in thousands of pesos in constant currency)
| b) | Through Communiqué “A” 7014 dated May 14, 2020, the BCRA established for financial<br>institutions that received debt securities of the public sector in a swap transaction, they must be initially recognized at their carrying<br>amount as of the date of the swap transaction, without assessing if they qualify or not for derecognition under IFRS 9 standards and as<br>a consequence, do not eventually recognize the new instruments at the market value as provided by such IFRS (see Note 9 to the condensed<br>consolidated interim Financial Statements). |
|---|
If IFRS 9 had applied, and according an estimation calculated by the Bank, the Statement of income of the period ended March 31, 2024, would have recorded a decrease in “Other operating income” for an amount of 2,012,244. On the other hand, an increase in “Loss on net monetary position” for an amount of 1,554,435 and a decrease in “Net gain from measurement of financial instruments at fair value through profit or loss” for an amount of 215,304, and as a counterpart an increase in “Other comprehensive income” for that period. In addition, it would have been recorded in the Statement of income of the period ended March 31, 2023 a decrease in “Other operating income” for an amount of 4,654,240. On the other hand, a decrease in “Loss on net monetary position” for an amount of 1,407,955 and an increase in “Net gain from measurement of financial instruments at fair value through profit or loss” for an amount of 6,429,045, and as a counterpart an increase in “Other comprehensive income” for that period. These changes would not have resulted into modifications to the total shareholder equity as of that date nor the total comprehensive income of the three-month periods ended March 31, 2024 and 2023.
Except for what was mentioned in the previous paragraphs, the accounting policies applied by the Bank comply with the IFRS as currently approved and are applicable to the preparation of these condensed consolidated interim Financial Statements in accordance with the IFRS as adopted by the BCRA through Communiqué “A” 7899. Generally, the BCRA does not allow the anticipated application of any IFRS, unless otherwise expressly stated.
Basis for presentation and consolidation
These condensed consolidated interim Financial Statements as of March 31, 2024, have been prepared in accordance with the accounting Framework established by the BCRA as mentioned in the previous section “Applicable accounting standards” which, particularly for condensed consolidated interim Financial Statements, is based on IAS 34 “Interim Financial Reporting”.
For the preparation of these condensed consolidated interim Financial Statements, in addition to section “measuring unit” of this note, the Bank has applied the basis for the preparation and consolidation, the accounting policies and the material accounting judgements, estimates and assumptions described in the consolidated Financial Statements for the fiscal year ended on December 31, 2023, already issued.
These condensed consolidated interim Financial Statements include all the necessary information for an appropriate understanding, by the users thereof, of the basis for the preparation and disclosure used therein as well as the relevant events and transactions occurred after the issuance of the last annual consolidated Financial Statements for the fiscal year ended on December 31, 2023, 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, 2023, already issued.
As of March 31, 2024 and December 31, 2023, the Bank has consolidated into its Financial Statements the Financial Statements of the following companies:
| Subsidiaries | Principal place of business | Country | Main activity |
|---|---|---|---|
| Macro Securities SAU (1) | Ave. Eduardo Madero 1182 - CABA | Argentina | Stock exchange services |
| Macro Fiducia SAU | Ave. Eduardo Madero 1182 - 2nd floor - CABA | Argentina | Services |
| Macro Fondos SGFCISA | Ave. Eduardo Madero 1182 - 24th floor, Office B - CABA | Argentina | Management and administration of mutual funds |
11
NOTES TO THE CONDENSED CONSOLIDATED INTERIMFINANCIAL STATEMENTS
AS OF MARCH 31, 2024
(Translation of Financial Statements originally issued in Spanish – See Note 44)
(Figures stated in thousands of pesos in constant currency)
| Subsidiaries | Principal place of business | Country | Main activity |
|---|---|---|---|
| Macro Bank Limited (2) | Caves Village, Building 8 Office 1 - West Bay St., Nassau | Bahamas | Banking entity |
| Argenpay SAU | Ave. Eduardo Madero 1182 - CABA | Argentina | Electronic payment services |
| Fintech SGR (Structured entity) | San Martín 140 - 2nd floor - CABA | Argentina | Granting of guarantees |
| Macro Agro SAU (formerly known as Comercio Interior SAU) (3) | Santa Fe 1219 - 4th floor - Rosario, Santa Fe | Argentina | Grain Brokerage |
| Banco BMA SAU (4) | Ave. Eduardo Madero 1182 – 9th floor – CABA | Argentina | Financial entity |
| BMA Asset Management SA | Ave. Eduardo Madero 1182 – 2nd floor – CABA | Argentina | Management and administration of mutual funds |
| BMA Valores SA | Ave. Eduardo Madero 1182 – 2nd floor – CABA | Argentina | Stock exchange services |
| (1) | Consolidated with Macro Fondos SGFCISA (80.90% equity interest and voting rights). | ||
| --- | --- | ||
| (2) | Consolidated with Sud Asesores (ROU) SA (100% voting rights – Equity interest: 62,017). | ||
| --- | --- | ||
| (3) | Consolidated with the Bank since May 2023, as control was obtained in such month (see Note 11). | ||
| --- | --- | ||
| (4) | Consolidated with the Bank since November 2023, as control was obtained in such month. Additionally,<br>Banco BMA SAU consolidates with BMA Asset Management SA (87% equity interest and voting rights) and with BMA Valores SA (87% equity interest<br>and voting rights). | ||
| --- | --- |
As of March 31, 2024 and December 31, 2023, the Bank's interest in the companies it consolidates is as follows:
| Shares | Bank’s interest | Non-controlling interest | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Subsidiaries | Type | Number | Total capital<br><br> stock | Voting <br><br>rights | Total capital stock | Voting <br><br>rights | |||||||||
| Macro Securities SAU | Common | 12,885,683 | 100.00 | % | 100.00 | % | |||||||||
| Macro Fiducia SAU | Common | 47,387,236 | 100.00 | % | 100.00 | % | |||||||||
| Macro Fondos SGFCISA | Common | 327,183 | 100.00 | % | 100.00 | % | |||||||||
| Macro Bank Limited | Common | 39,816,899 | 100.00 | % | 100.00 | % | |||||||||
| Argenpay SAU | Common | 1,001,200,000 | 100.00 | % | 100.00 | % | |||||||||
| Fintech SGR (Structured entity) | Common | 119,993 | 24.999 | % | 24.999 | % | 75.001 | % | 75.001 | % | |||||
| Macro Agro SAU (formerly known as Comercio Interior SAU) (1) | Common | 615,519 | 100.00 | % | 100.00 | % | |||||||||
| Banco BMA SAU (2) | Common | 729,166,165 | 100.00 | % | 100.00 | % | |||||||||
| Preferred | 14,565,089 | 100.00 | % | ||||||||||||
| BMA Asset Management SA (2) | Common | 91,950 | 100.00 | % | 100.00 | % | |||||||||
| BMA Valores SA (2) | Common | 52,419,500 | 100.00 | % | 100.00 | % | |||||||||
| (1) | Interest acquired in May 2023 (see Note 11). | ||||||||||||||
| --- | --- | ||||||||||||||
| (2) | Interest acquired in November 2023 (see Note 11). | ||||||||||||||
| --- | --- |
12
NOTES TO THE CONDENSED CONSOLIDATED INTERIMFINANCIAL STATEMENTS
AS OF MARCH 31, 2024
(Translation of Financial Statements originally issued in Spanish – See Note 44)
(Figures stated in thousands of pesos in constant currency)
Total assets, liabilities and Shareholders’ equity of the Bank and all its subsidiaries as of March 31, 2024 and December 31, 2023 are as follows:
| Balances as of 03/31/2024 | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Entity | Assets | Liabilities | Equity<br><br> attributable to <br><br>the owners of the<br><br> Bank | Equity attributable<br><br> to non-controlling<br><br> interests | |||||||
| Banco Macro SA | 8,928,935,254 | 5,568,821,823 | 3,360,113,431 | ||||||||
| Macro Bank Limited | 108,299,316 | 76,225,139 | 32,074,177 | ||||||||
| Macro Securities SAU (1) | 269,807,555 | 177,697,124 | 92,110,431 | ||||||||
| Macro Fiducia SAU | 725,367 | 20,965 | 704,402 | ||||||||
| Argenpay SAU | 17,550,280 | 9,021,364 | 8,528,916 | ||||||||
| Fintech SGR | 17,045,858 | 16,697,015 | 87,213 | 261,630 | |||||||
| Macro Agro SAU (formerly known as Comercio Interior SAU) | 20,032,341 | 19,459,613 | 572,728 | ||||||||
| Banco BMA SAU (2) | 1,173,365,080 | 846,641,453 | 326,723,627 | ||||||||
| Eliminations | (537,695,284 | ) | (76,893,790 | ) | (460,801,494 | ) | |||||
| Consolidated | 9,998,065,767 | 6,637,690,706 | 3,360,113,431 | 261,630 | |||||||
| (1) | Includes the balance amounts of its subsidiary Macro Fondos SGFCISA. | ||||||||||
| --- | --- | ||||||||||
| (2) | Includes the balance amounts of its subsidiaries BMA Asset Management SA and BMA Valores SA. | ||||||||||
| --- | --- | ||||||||||
| Balances as of 12/31/2023 | |||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Entity | Assets | Liabilities | Equity <br><br>attributable to<br><br> the owners of the<br><br> Bank | Equity attributable<br><br> to non-controlling<br><br> interests | |||||||
| Banco Macro SA | 8,872,205,698 | 5,772,805,622 | 3,099,400,076 | ||||||||
| Macro Bank Limited | 146,941,368 | 105,429,728 | 41,511,639 | ||||||||
| Macro Securities SAU (1) | 260,953,813 | 173,901,554 | 87,052,259 | ||||||||
| Macro Fiducia SAU | 986,840 | 72,263 | 914,577 | ||||||||
| Argenpay SAU | 23,064,425 | 12,543,249 | 10,521,177 | ||||||||
| Fintech SGR | 25,435,854 | 24,494,013 | 235,449 | 706,392 | |||||||
| Macro Agro SAU (formerly known as Comercio Interior SAU) | 36,527,555 | 35,354,468 | 1,173,086 | ||||||||
| Banco BMA SAU (2) | 1,333,498,840 | 1,011,513,951 | 321,984,889 | ||||||||
| Eliminations | (512,030,043 | ) | (48,636,966 | ) | (463,393,076 | ) | |||||
| Consolidated | 10,187,584,350 | 7,087,477,882 | 3,099,400,076 | 706,392 | |||||||
| (1) | Includes the balance amounts of its subsidiary Macro Fondos SGFCISA. | ||||||||||
| --- | --- | ||||||||||
| (2) | Includes the balance amounts of its subsidiaries BMA Asset Management SA and BMA Valores SA. | ||||||||||
| --- | --- |
Going concern
The Bank’s management has made an assessment of its ability to continue as a going concern and is satisfied that it has the resources to continue in business for the foreseeable future. Furthermore, management is not aware of any material uncertainties that may cast significant doubt on the Bank’s ability to continue as a going concern. Therefore, these condensed consolidated interim Financial Statements continue to be prepared on the going concern basis.
Transcription into books
As of the date of issuance of these condensed consolidated interim Financial Statements, they are in the process of being transcribed into the Financial Statements book (“Libro Balances”) of Banco Macro SA.
13
NOTES TO THE CONDENSED CONSOLIDATED INTERIMFINANCIAL STATEMENTS
AS OF MARCH 31, 2024
(Translation of Financial Statements originally issued in Spanish – See Note 44)
(Figures stated in thousands of pesos in constant currency)
Figures expressed in thousands of pesos
These condensed consolidated interim Financial Statements disclose figures expressed in thousands of Argentine pesos in terms of purchasing power as of March 31, 2024, and are rounded up to the nearest amount in thousands of pesos, except as otherwise indicated (see section “Measuring unit” of this note).
Comparative information
The condensed consolidated interim statement of financial position as of March 31, 2024, is presented comparatively with year-end data of the immediately preceding fiscal year, while the statement of income, the statement of other comprehensive income, the statement of changes in shareholders’ equity and the statement of cash flows and cash equivalents for the three-month period ended on that date, are presented comparatively with data as of the same periods of the immediately preceding fiscal year.
The figures related to comparative information have been restated to consider the changes in the general purchasing power of the functional currency and, as a result, are stated in terms of the current measuring unit at the end of the reporting period (see the following section “Measuring unit”).
Measuring unit
These condensed consolidated interim Financial Statements have been restated for the changes in the general purchasing power of the functional currency (Argentine pesos) as of March 31, 2024, as established by IAS 29 “Financial Reporting in Hyperinflationary Economies” and considering, in addition, specific rules established by BCRA through Communiqués “A” 6651, 6849, as amended, which established the obligation to apply this method, from fiscal years beginning on or after January 1, 2020, and determined as the transition date December 31, 2018.
According to IFRS, the restatement of Financial Statements is needed when the functional currency is the currency of a hyperinflationary economy. To achieve consistency in identifying an economic environment of that nature, IAS 29 establishes (i) certain nonexclusive qualitative indicators, consisting in analyzing the general population behavior, prices, interest rates and wages with changes in price indexes and the loss of purchasing power, and (ii) as quantitative characteristic, which is the most used condition in practice, to test if a three-year cumulative inflation rate is around 100% or more. Due to miscellaneous macroeconomic factors, the three-year inflation rate exceeded that figure and the Argentine government goals and other available estimates also indicate that this trend will not be reversed in the short term.
The restatement was applied as if the economy had always been hyperinflationary, using a general price index that reflects changes in general purchasing power. To apply the restatement, a series of indexes were used, as prepared and published on a monthly basis by the Argentine Federation of Professional Councils of Economic Sciences (FACPCE, for its acronym in Spanish), which combines the consumer price index (CPI) on a monthly basis published by the Argentine Institute of Statistics and Censuses (INDEC, for its acronym in Spanish) since January 2017 (baseline month: December 2016) with the wholesale prices indexes published by the INDEC until that date. For the months of November and December 2015, for which the INDEC did not publish the wholesale price index (WPI) variation, the CPI variation for CABA was used.
Considering the abovementioned indexes, the inflation rate was 51.62% and 21.73% for the three-month periods ended on March 31, 2024 and 2023, respectively, and 211.41% for the fiscal year ended on December 31, 2023.
Below is a description of the restatement mechanism provided by IAS 29 “Financial Reporting in Hyperinflationary Economies” and the restatement process for Financial Statements established by BCRA Communiqué “A” 6849, as supplemented.
Description of the main aspects of the restatement process for statements of financial position
| (i) | Monetary items (the ones that are already stated in terms of the current measuring unit) are not restated<br>because they are already expressed in terms of the monetary unit current at the end of the reporting period. In an inflationary period,<br>an entity holding monetary assets generates purchasing 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 to some extent such effects. The net gain or loss<br>on a monetary basis is included in profit or loss of the reporting period. |
|---|---|
| (ii) | Assets and liabilities subject to adjustments based on specific agreements are adjusted in accordance<br>with such agreements. |
| --- | --- |
14
NOTES TO THE CONDENSED CONSOLIDATED INTERIMFINANCIAL STATEMENTS
AS OF MARCH 31, 2024
(Translation of Financial Statements originally issued in Spanish – See Note 44)
(Figures stated in thousands of pesos in constant currency)
| (iii) | Non-monetary items stated at current cost at the end of the reporting period, are not restated for presentation<br>purposes in the statement of financial position, but the adjustment process must be completed to determine, in terms of constant measurement<br>unit, the income or loss produced by holding these non-monetary items. |
|---|---|
| (iv) | Non-monetary items carried at historical cost or at current cost at some earlier date before the reporting<br>date, are restated by an index that reflects the general level of price variation from the acquisition or revaluation date to the closing<br>date, proceeding then to compare the restated amounts 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 and other non-monetary assets cost are determined<br>over the new restated amounts. |
| --- | --- |
| (v) | When an entity capitalizes borrowing cost in the non-monetary assets, the part of the borrowing cost that<br>compensates the creditor for the effects of inflation is not capitalized. |
| --- | --- |
| (vi) | The restatement of non-monetary assets in terms of a current measurement unit at the end of the reporting<br>period, without an equivalent adjustment for tax purposes generates a taxable temporary difference and a deferred income tax liability<br>is recognized and the contra account is recognized as profit or loss of the period. When, beyond the restatement, there is a revaluation<br>of non-monetary assets, the deferred tax related to the restatement is recognized in profit or loss of the period and deferred tax related<br>to the revaluation is recognized in other comprehensive income. |
| --- | --- |
Description of the main aspects of the restatement process for statements of income and other comprehensive income
| (i) | Income and expenses are restated from the date the items were recorded, except for those income or loss<br>items that reflect or include, in their determination, the consumption of assets measured at the currency purchasing power from a date<br>prior to that which the consumption was recorded, which is restated using as a basis the acquisition date of the assets related to the<br>item, except for income or losses arising from comparing the two measurements at currency purchasing power of different dates, for which<br>it requires to identify the compared amounts, to restate them separately and to repeat the comparison, with the restated amounts. |
|---|---|
| (ii) | The gain or loss from monetary position will be classified based on the item that generated it and will<br>be separately disclosed reflecting the inflationary effects over such items. |
| --- | --- |
Description of the main aspects of the restatement process for the statements of changes in shareholders’ equity
| (i) | As the transition date (December 31, 2018), the Bank has applied the following procedures: |
|---|---|
| a) | The components of equity, except the ones mentioned below, were restated from the dates the components<br>were contributed or otherwise arose according to BCRA Communiqué “A” 6849, for each item. |
| --- | --- |
| b) | Earnings reserved, including the special reserve for the first-time application of IFRS, were stated at<br>nominal value at the transition date (legal amount not restated). |
| --- | --- |
| c) | The unappropriated retained earnings were determined as a difference between the restated net asset at<br>the transition date and the other components of equity, restated as disclosed in the abovementioned paragraphs. |
| --- | --- |
| d) | The accumulated balances of other comprehensive income were recalculated at the transition date. |
| --- | --- |
| (ii) | After the restatement on the abovementioned transition date in (i) above, all equity components are<br>restated by applying a general price index as mentioned before from the beginning of the fiscal year and each variation of those components<br>is restated from the contribution date or from the moment it was produced in any other way, and the accumulated OCI balances are redetermined<br>according to the items that give rise to it. |
| --- | --- |
Description of the main aspects of the restatement process for the statement of cash flows
| (i) | All items are restated in terms of the measuring unit current at the end of the reporting period. |
|---|---|
| (ii) | The monetary gain or losses generated by cash and cash equivalents are separately disclosed in the statement<br>of cash flows after the cash flow from operating investment activities and financing activities, in a separate and independent line, under<br>the description “Monetary effect on cash and cash equivalents”. |
| --- | --- |
15
NOTES TO THE CONDENSED CONSOLIDATED INTERIMFINANCIAL STATEMENTS
AS OF MARCH 31, 2024
(Translation of Financial Statements originally issued in Spanish – See Note 44)
(Figures stated in thousands of pesos in constant currency)
Accounting judgments, estimates and assumptions
The preparation of these condensed consolidated interim Financial Statements requires the Bank’s Management to consider significant accounting judgments, estimates and assumptions that impact on the reported assets and liabilities, income, revenues and expenses, as well as the assessment and disclosure of contingent assets and liabilities, as of the end of the period. The Bank’s reported amounts are based on the best estimate regarding the probability of occurrence of different future events and, therefore, the uncertainties associated with the estimates and assumptions made by the Bank’s Management may drive in the future to final amounts that may differ from those estimates and may require material adjustments to the reported amounts of the affected assets and liabilities.
The Bank applies the same accounting judgments, estimates and assumptions described in Note 3 section “accounting judgments, estimates and assumptions” to the consolidated Financial Statements as of December 31, 2023, already issued.
New standards adopted in thefiscal year
For the fiscal year beginning on January 1, 2024, the following amendments to IFRS are effective and they did not have a material impact on these condensed consolidated interim Financial Statements as a whole:
Amendments to IFRS 16 “Leases” – Sale and leaseback transactions:
This amendment in the IFRS 16 specifies the requirements that the lessee-seller uses to measure the lease liability arising from these transactions, to ensure the lessee-seller does not recognize any amount of the gain or loss that relates to the right of use it retains. The amendment does not prescribe specific measurement requirements for lease liabilities arising from a leaseback. The initial measurement of the lease liability arising from a leaseback may result in a seller-lessee determining ‘lease payments’ that are different from the general definition of lease payments. The seller-lessee will need to develop and apply an accounting policy that results in information that is relevant and reliable in accordance with IAS 8. This amendment is applicable as of January 1, 2024.
This amendment in the IFRS did not have a material impact on these condensed consolidated interim Financial Statements.
Amendments to IAS 7 “Statements of Cash Flow” and IFRS 7 “Financial Instruments: Disclosures” – Disclosures on Supplier Finance Arrangement:
These amendments specify new disclosure requirements to enhance the current requirements, which are intended to assist users of Financial Statements in understanding the effects of these arrangements on the Bank’s liabilities, cash flows and exposure to liquidity risk.
These amendments did not have a material impact on the disclosures of these condensed consolidated interim Financial Statements.
New pronouncements
Pursuant to Communiqué “A” 6114 of the BCRA, as new IFRS are approved and existing IFRS are amended or revoked and once these changes are approved through the notices of approval issued by the FACPCE, the BCRA shall issue a statement on the approval thereof for financial entities. Generally, financial institutions shall not apply any IFRS in advance, except as specifically authorized at the time of the adoption thereof.
The new and amended standards and interpretations that are issued, but not yet effective, up to the date of issuance of these condensed consolidated interim Financial Statements are disclosed below. The Bank intends to adopt these standards, if applicable, when they become effective.
| a) | Amendments to IAS 21 “Lack of Exchangeability”: the amendments to this standard will allow<br>an entity to evaluate whether a currency is exchangeable and how to determine a spot exchange rate when exchangeability is lacking. This<br>amendment is applicable as of January 1, 2025. The Bank is evaluating the effects that this amendment would cause in the Financial<br>Statements of the Bank. |
|---|---|
| b) | Amendments to NIIF 18 “Presentation and Disclosure in Financial Statements”: the amendments<br>establish a new requirement in the presentation of profits or losses in the Financial Statements. This amendment is applicable as of January 1,<br>2027. The Bank does not expect this standard to have a material impact on the Financial Statements. |
| --- | --- |
16
NOTES TO THE CONDENSED CONSOLIDATED INTERIMFINANCIAL STATEMENTS
AS OF MARCH 31, 2024
(Translation of Financial Statements originally issued in Spanish – See Note 44)
(Figures stated in thousands of pesos in constant currency)
| 4. | CONTINGENT TRANSACTIONS |
|---|
In order to meet specific financial needs of customers, the Bank’s credit policy also includes, among others, the granting of guarantees, securities, bonds, letters of credit and documentary credits. The Bank is also exposed to overdrafts and unused agreed credits on credit cards of the Bank. Since they imply a contingent obligation for the Bank, they expose the Bank to credit risks other than those recognized in the Statement of financial position and, therefore, they are an integral part of the total risk of the Bank.
As of March 31, 2024 and December 31, 2023, the Bank maintains the following maximum exposures to credit risk related to this type of transactions:
| Composition | 03/31/2024 | 12/31/2023 | ||||
|---|---|---|---|---|---|---|
| Undrawn commitments of credit cards and checking accounts | 1,736,547,273 | 2,099,478,452 | ||||
| Guarantees granted (1) | 207,823,105 | 280,563,302 | ||||
| Overdraft and unused agreed commitments (1) | 36,408,440 | 55,467,231 | ||||
| Responsibilities for foreign trade operations | 20,386,686 | 60,816,096 | ||||
| Subtotal | 2,001,165,504 | 2,496,325,081 | ||||
| Less: Allowance for Expected Credit Losses (ECL) | (2,682,349 | ) | (3,195,005 | ) | ||
| Total | 1,998,483,155 | 2,493,130,076 | ||||
| (1) | Includes transactions not covered by the financial system debtor classification standard. The Guarantees<br>granted include an amount of 1,113,326 and 991,299, as of March 31, 2024 and December 31, 2023, respectively. The Overdraft<br>and unused agreed commitments include an amount of 12,409 and 17,740, as of March 31, 2024 and December 31, 2023, respectively. | |||||
| --- | --- |
Risks related to the abovementioned contingent transactions have been assessed and are controlled within the framework of the Bank’s credit risk policy, as described in Note 45 to the consolidated Financial Statements as of December 31, 2023, already issued.
Disclosures related to the allowance for ECL are detailed in item 8.5 of Note 8 “Loss allowance for expected credit losses on credit exposures not measured at fair value through profit or loss”.
| 5. | DEBT SECURITIES AT FAIR VALUE THROUGH PROFIT OR LOSS |
|---|
The composition of debt securities at fair value through profit or loss as of March 31, 2024 and December 31, 2023 is as follows:
| Composition | 03/31/2024 | 12/31/2023 | ||
|---|---|---|---|---|
| Government securities (1) | 4,276,544,007 | 2,598,258,074 | ||
| Private securities (2) | 56,208,351 | 49,718,722 | ||
| Government securities – Foreign | 242,454 | 8,611,374 | ||
| Total | 4,332,994,812 | 2,656,588,170 | ||
| (1) | In March and June 2023, the Bank entered into voluntary debt exchange under the terms of section<br>11, Presidential Decree No. 331/2022 issued by the Ministry of Economy. The securities involved in such exchange transactions were<br>as follows: | |||
| --- | --- | |||
| · | Argentine government Treasury bills in pesos<br>adjusted by CER – Maturity: 05-19-2023 (X19Y3) for a face value of 1,145,882,575. | |||
| --- | --- | |||
| · | Argentine government discount bonds in dual currency<br> – Maturity: 07-21-2023 (TDL23) for a face value of 344,498,105. | |||
| --- | --- | |||
| · | Argentine government discount Treasury bills<br>in pesos – Maturity: 05-31-2023 (S31Y3) for a face value of 295,000,000. | |||
| --- | --- | |||
| · | Argentine government discount Treasury bills<br>in pesos – Maturity: 04-28-2023 (S28A3) for a face value of 210,000,000. | |||
| --- | --- |
17
NOTES TO THE CONDENSED CONSOLIDATED INTERIMFINANCIAL STATEMENTS
AS OF MARCH 31, 2024
(Translation of Financial Statements originally issued in Spanish – See Note 44)
(Figures stated in thousands of pesos in constant currency)
| · | Argentine government discount Treasury bills<br>in pesos – Maturity: 03-31-2023 (S31M3) for a face value of 200,000,000. |
|---|---|
| · | Argentine government Treasury bills in pesos<br>adjusted by CER – Maturity: 06-16-2023 (X16J3) for a face value of 159,305,395. |
| --- | --- |
| · | Argentine government discount bonds in dual currency<br> – Maturity: 09-29-2023 (TDS23) for a face value of 120,244,752. |
| --- | --- |
| · | Argentine government Treasury bonds tied to the<br>US dollar - Maturity: 07-31-2023 (T2V3) for a face value of 3,000,000. |
| --- | --- |
Additionally, with almost all the instruments received, the Bank acquired put options with the BCRA. These options give the Bank the opportunity to sell (put options) the underlying asset at a value determined by the applicable BCRA regulations. In this transaction, the options could be exercised up to one day before the maturity of the underlying instrument. Considering the terms and conditions of these put options established by the BCRA, they are considered "out of the money" with fair value amounted to zero. As of March 31, 2024 and December 31, 2023, the notional value amounted to 212,018,219 and 1,695,587,771, respectively (see Exhibits A and O to the condensed separate interim Financial Statements).
| (2) | During July 2023, the Bank decided to enter into an exchange of the following instrument: Aeropuertos<br>Argentina 2000 US dollars 4% class 3 - Maturity: 09-08-2023 (AER3D) for a total face value of 4,555,434. |
|---|---|
| 6. | OTHER FINANCIAL ASSETS |
| --- | --- |
The composition of the other financial assets as of March 31, 2024 and December 31, 2023 is as follows:
| Composition | 03/31/2024 | 12/31/2023 | ||||
|---|---|---|---|---|---|---|
| Sundry debtors | 117,890,744 | 157,376,758 | ||||
| Receivables from other spot sales pending settlement | 64,216,608 | 105,663,879 | ||||
| Private securities | 39,533,856 | 40,014,526 | ||||
| Receivables from spot sales of foreign currency pending settlement | 5,640,108 | 2,142,831 | ||||
| Receivables from spot sales of government securities pending settlement | 713,436 | 142,506 | ||||
| Other | 717,998 | 900,341 | ||||
| Subtotal | 228,712,750 | 306,240,841 | ||||
| Less: Allowances for ECL | (481,896 | ) | (902,568 | ) | ||
| Total | 228,230,854 | 305,338,273 |
Disclosures related to allowance for ECL are detailed in item 8.4 of Note 8 “Loss allowance for expected credit losses on credit exposures not measured at fair value through profit or loss”.
18
NOTES TO THE CONDENSED CONSOLIDATED INTERIMFINANCIAL STATEMENTS
AS OF MARCH 31, 2024
(Translation of Financial Statements originally issued in Spanish – See Note 44)
(Figures stated in thousands of pesos in constant currency)
| 7. | LOANS AND OTHER FINANCING |
|---|
The composition of loans and other financing as of March 31, 2024 and December 31, 2023 is as follows:
| Composition | 03/31/2024 | 12/31/2023 | ||||
|---|---|---|---|---|---|---|
| Non-financial public sector (1) | 2,817,424 | 7,151,596 | ||||
| Other financial entities | 19,637,132 | 15,109,236 | ||||
| Other financial entities | 19,658,810 | 15,144,452 | ||||
| Less: allowance for ECL | (21,678 | ) | (35,216 | ) | ||
| Non-financial private sector and foreign residents | 2,478,130,098 | 2,757,967,464 | ||||
| Overdrafts | 343,943,099 | 436,518,189 | ||||
| Documents | 502,966,349 | 512,995,756 | ||||
| Mortgage loans | 243,847,540 | 250,370,711 | ||||
| Pledge loans | 32,927,653 | 42,647,211 | ||||
| Personal loans | 316,412,740 | 361,272,425 | ||||
| Credit cards | 602,914,622 | 735,016,797 | ||||
| Financial leases | 10,056,505 | 14,386,793 | ||||
| Other | 494,242,531 | 486,066,145 | ||||
| Less: allowance for ECL | (69,180,941 | ) | (81,306,563 | ) | ||
| Total | 2,500,584,654 | 2,780,228,296 | ||||
| (1) | As explained in Note 3, ECL is not calculated to public sector exposures. | |||||
| --- | --- | |||||
| 8. | LOSS ALLOWANCE FOR EXPECTED CREDIT LOSSES ON CREDIT EXPOSURES NOT MEASURED AT FAIR VALUE THROUGH PROFITOR 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 10 discloses financial assets measured at fair value on a recurring basis and financial assets not recognized at fair value. This classification is made pursuant to the expressed in Note 3 “Basis for the preparation of these Financial Statements and applicable accounting standards” to the consolidated Financial Statements as of December 31, 2023, already issued. Additionally, Note 10 explains the information related to the valuation process.
Moreover, considering the temporary exclusion established by BCRA mentioned in Note 3 “Applicable accounting standards” the Bank applies the impairment requirements for the recognition and measurement of a loss allowance for financial assets measured at amortized cost or at fair value through other comprehensive income, except for public sector exposures. In addition, the Bank applies the impairment requirements for guarantees granted, undrawn commitments of credit cards and checking accounts, letter of credits, which are not recognized in the consolidated statement of financial position.
For the purpose of assessing the Bank’s credit risk exposure and identifying material credit risk concentration, disclosures regarding credit risk of financial assets and items not recognized in the statement of financial position are as follows.
19
NOTES TO THE CONDENSED CONSOLIDATED INTERIMFINANCIAL STATEMENTS
AS OF MARCH 31, 2024
(Translation of Financial Statements originally issued in Spanish – See Note 44)
(Figures stated in thousands of pesos in constant currency)
| 8.1 | Loans and other financing measured at amortized cost |
|---|
According to the nature of the information to be disclosed and the loan characteristics, the Bank groups them as follows:
| Composition | 03/31/2024 | 12/31/2023 | ||||
|---|---|---|---|---|---|---|
| Loans and other financing | 2,569,787,273 | 2,861,570,075 | ||||
| Individual assessment | 980,937,729 | 665,285,026 | ||||
| Collective assessment | 1,588,849,544 | 2,196,285,049 | ||||
| Less: Allowance for ECL (1) | (69,202,619 | ) | (81,341,779 | ) | ||
| Total | 2,500,584,654 | 2,780,228,296 | ||||
| (1) | As explained in Note 3, ECL is not calculated to public sector exposures. | |||||
| --- | --- |
As explained in Note 45.1.3 to the consolidated Financial Statements as of December 31, 2023, already issued, “Additional Forward-looking allowances based on expert credit judgment”, section “Adjustment for expectations of increased risk due to the change in economic policy”, the Bank resolved to carry out an adjustment with a prospective vision as a consequence of estimating an incremental effect in the forecasts determined by ECL for the purposes of covering a scenario of uncertainty regarding the impacts that could originate from the change in the economic policy regime, the implementation of a program to adjust imbalances macroeconomics and an inflation stabilization plan. As of March 31, 2024 and December 31, 2023, said adjustment was estimated at 10,089,134 and 16,645,255, respectively, as explained in the section "Adjustment for uncertainty about conditions of accessing loans to MIPYMES" of the aforementioned note.
The following table shows the credit quality and the carrying amount of credit risk, based on the Bank’s credit risk rating system, the probability of default (PD) and the year-end stage classification, taking into account what was mentioned in the previous paragraph. The amounts are presented gross of the impairment allowances.
| 03/31/2024 | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Internal rating grade | Range PD | Stage 1 | Stage 2 | Stage 3 | Total | % | |||||
| Performing | 2,395,515,239 | 69,557,327 | 2,465,072,566 | 95.93 | |||||||
| High grade | 0.00% - 3.50% | 2,234,771,747 | 20,501,056 | 2,255,272,803 | 87.76 | ||||||
| Standard grade | 3.51% - 7.00% | 105,557,899 | 13,321,735 | 118,879,634 | 4.63 | ||||||
| Sub-standard grade | 7.01% - 33.00% | 55,185,593 | 35,734,536 | 90,920,129 | 3.54 | ||||||
| Past due but not impaired (1) | 33.01% - 99.99% | 17,722,067 | 60,798,152 | 78,520,219 | 3.05 | ||||||
| Impaired | 100% | 26,194,488 | 26,194,488 | 1.02 | |||||||
| Total | 2,413,237,306 | 130,355,479 | 26,194,488 | 2,569,787,273 | 100 | ||||||
| % | 93.91 | 5.07 | 1.02 | 100 | |||||||
| 12/31/2023 | |||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Internal rating grade | Range PD | Stage 1 | Stage 2 | Stage 3 | Total | % | |||||
| Performing | 2,681,633,005 | 74,790,061 | 2,756,423,066 | 96.33 | |||||||
| High grade | 0.00%<br> - 3,50% | 2,511,885,060 | 26,719,528 | 2,538,604,588 | 88.71 | ||||||
| Standard grade | 3.51%<br> - 7,00% | 112,684,466 | 16,824,963 | 129,509,429 | 4.53 | ||||||
| Sub-standard grade | 7.01%<br> - 33,00% | 57,063,479 | 31,245,570 | 88,309,049 | 3.09 | ||||||
| Past due but not impaired (1) | 33.01%<br> - 99,99% | 14,495,462 | 60,337,194 | 74,832,656 | 2.61 | ||||||
| Impaired | 100% | 30,314,353 | 30,314,353 | 1.06 | |||||||
| Total | 2,696,128,467 | 135,127,255 | 30,314,353 | 2,861,570,075 | 100 | ||||||
| % | 94.22 | 4.72 | 1.06 | 100 | |||||||
| (1) | It also includes transactions under collective<br> assessment which are more than 5 days past due independently of the PD range assigned. | ||||||||||
| --- | --- |
20
NOTES TO THE CONDENSED CONSOLIDATED INTERIMFINANCIAL STATEMENTS
AS OF MARCH 31, 2024
(Translation of Financial Statements originally issued in Spanish – See Note 44)
(Figures stated in thousands of pesos in constant currency)
| 8.1.1 | Loans on an individual assessment |
|---|
The table below shows the credit quality and the debt balance to credit risk of commercial loans by grade of credit risk classification, based on the Bank’s internal credit rating system, PD range and classification by stages at the date of the reporting period. The Bank’s internal credit rating systems and the evaluation and measurement approaches are explained in Note 45 section “Credit risk” to the consolidated Financial Statements as of December 31, 2023, already issued.
| 03/31/2024 | ||||||
|---|---|---|---|---|---|---|
| Internal rating grade | Range PD | Stage 1 | Stage 2 | Stage 3 | Total | % |
| Performing | 944,892,137 | 7,917,948 | 952,810,085 | 97.13 | ||
| High grade | 0.00%<br> - 3.50% | 892,797,790 | 4,563,366 | 897,361,156 | 91.48 | |
| Standard grade | 3.51%<br> - 7.00% | 27,784,464 | 60,503 | 27,844,967 | 2.84 | |
| Sub-standard grade | 7.01%<br> - 33.00% | 24,309,883 | 3,294,079 | 27,603,962 | 2.81 | |
| Past due but not impaired | 33.01%<br> - 99.99% | 19,871,167 | 19,871,167 | 2.03 | ||
| Impaired | 100% | 8,256,477 | 8,256,477 | 0.84 | ||
| Total | 944,892,137 | 27,789,115 | 8,256,477 | 980,937,729 | 100 | |
| % | 96.33 | 2.83 | 0.84 | 100 | ||
| 12/31/2023 | ||||||
| --- | --- | --- | --- | --- | --- | --- |
| Internal rating grade | Range PD | Stage 1 | Stage 2 | Stage 3 | Total | % |
| Performing | 616,944,695 | 10,760,937 | 627,705,632 | 94.35 | ||
| High grade | 0.00%<br> - 3.50% | 562,350,833 | 6,478,437 | 568,829,270 | 85.50 | |
| Standard grade | 3.51%<br> - 7.00% | 31,120,908 | 2,215 | 31,123,123 | 4.68 | |
| Sub-standard grade | 7.01%<br> - 33.00% | 23,472,954 | 4,280,285 | 27,753,239 | 4.17 | |
| Past due but not impaired | 33.01%<br> - 99.99% | 26,867,500 | 26,867,500 | 4.04 | ||
| Impaired | 100% | 10,711,894 | 10,711,894 | 1.61 | ||
| Total | 616,944,695 | 37,628,437 | 10,711,894 | 665,285,026 | 100 | |
| % | 92.73 | 5.66 | 1.61 | 100 | ||
| 8.1.2 | Loans on a collective assessment | |||||
| --- | --- |
The table below shows the credit quality and the debt balance to credit risk of loans portfolio under collective assessment, by grade of credit risk classification, based on the Bank’s internal credit rating system, PD range and classification by stages at the date of the reporting period. The Bank’s internal credit rating systems and the evaluation and measurement approaches are explained in Note 45 section “Credit risk” to the consolidated Financial Statements as of December 31, 2023, already issued.
21
NOTES TO THE CONDENSED CONSOLIDATED INTERIMFINANCIAL STATEMENTS
AS OF MARCH 31, 2024
(Translation of Financial Statements originally issued in Spanish – See Note 44)
(Figures stated in thousands of pesos in constant currency)
| 03/31/2024 | ||||||
|---|---|---|---|---|---|---|
| Internal rating grade | Range PD | Stage 1 | Stage 2 | Stage 3 | Total | % |
| Performing | 1,450,623,102 | 61,639,380 | 1,512,262,482 | 95.18 | ||
| High grade | 0.00%<br> - 3.50% | 1,341,973,956 | 15,937,690 | 1,357,911,646 | 85.46 | |
| Standard grade | 3.51%<br> - 7.00% | 77,773,435 | 13,261,232 | 91,034,667 | 5.73 | |
| Sub-standard grade | 7.01%<br> - 33.00% | 30,875,711 | 32,440,458 | 63,316,169 | 3.99 | |
| Past due but not impaired (1) | 33.01%<br> - 99.99% | 17,722,067 | 40,926,985 | 58,649,052 | 3.69 | |
| Impaired | 100% | 17,938,010 | 17,938,010 | 1.13 | ||
| Total | 1,468,345,169 | 102,566,365 | 17,938,010 | 1,588,849,544 | 100 | |
| % | 92.41 | 6.46 | 1.13 | 100 | ||
| 12/31/2023 | ||||||
| --- | --- | --- | --- | --- | --- | --- |
| Internal rating grade | Range PD | Stage 1 | Stage 2 | Stage 3 | Total | % |
| Performing | 2,064,688,310 | 64,029,124 | 2,128,717,434 | 96.93 | ||
| High grade | 0.00%<br> - 3.50% | 1,949,534,227 | 20,241,091 | 1,969,775,318 | 89.69 | |
| Standard grade | 3.51%<br> - 7.00% | 81,563,558 | 16,822,748 | 98,386,306 | 4.48 | |
| Sub-standard grade | 7.01%<br> - 33.00% | 33,590,525 | 26,965,285 | 60,555,810 | 2.76 | |
| Past due but not impaired (1) | 33.01%<br> - 99.99% | 14,495,462 | 33,469,694 | 47,965,156 | 2.18 | |
| Impaired | 100% | 19,602,459 | 19,602,459 | 0.89 | ||
| Total | 2,079,183,772 | 97,498,818 | 19,602,459 | 2,196,285,049 | 100 | |
| % | 94.67 | 4.44 | 0.89 | 100 | ||
| (1) | It also includes transactions which are more than 5 days past due independently<br> of the PD range assigned. | |||||
| --- | --- | |||||
| 8.2 | Other debt securities at amortized cost | |||||
| --- | --- | |||||
| The criterion used to calculate ECL of Financial Trusts and Corporate Bonds is based on the rating<br> granted by risk rating agencies to each debt security type making up the financial trusts or each corporate bond series,<br> respectively. This means that the factor to be used will vary depending on the debt securities holdings (A or B). The EAD is assumed<br> to be equal to the outstanding balance. | ||||||
| --- |
The table below shows the exposures gross of impairment allowances by stage:
| 03/31/2024 | |||||
|---|---|---|---|---|---|
| Composition | Stage 1 | Stage 2 | Stage 3 | Total | % |
| Corporate bonds | 10,640,358 | 10,640,358 | 92.79 | ||
| Financial trusts | 826,469 | 826,469 | 7.21 | ||
| Other private securities | 144 | 144 | |||
| Total | 11,466,827 | 144 | 11,466,971 | 100 | |
| % | 100 | 100 |
22
NOTES TO THE CONDENSED CONSOLIDATED INTERIMFINANCIAL STATEMENTS
AS OF MARCH 31, 2024
(Translation of Financial Statements originally issued in Spanish – See Note 44)
(Figures stated in thousands of pesos in constant currency)
| 12/31/2023 | |||||
|---|---|---|---|---|---|
| Composition | Stage 1 | Stage 2 | Stage 3 | Total | % |
| Corporate bonds | 15,647,704 | 15,647,704 | 93,95 | ||
| Financial trusts | 1,008,496 | 1,008,496 | 6,05 | ||
| Other private securities | 218 | 218 | |||
| Total | 16,656,200 | 218 | 16,656,418 | 100 | |
| % | 100 | 100 |
The related ECL for Corporate bonds as of March 31, 2024 and December 31, 2023 amounted to 27,101 and 17,784, respectively. The ECL related to Financial trusts as of March 31, 2024 and December 31, 2023 amounted to 433 and 209, respectively. The ECL related to Other private securities as of March 31, 2024 and December 31, 2023 amounted to 144 and 218, respectively.
| 8.3 | Government securities at amortized cost<br> or fair value through OCI |
|---|
This group includes local government securities, provincial securities or BCRA instruments measured at amortized cost or fair value through OCI. For these assets, an individual assessment of the related parameters is performed. However, under domestic standards and according to Communiqué “A” 6847, no ECL is calculated for these instruments.
A breakdown of these investments and their characteristics is disclosed in Exhibit A to the condensed separate interim Financial Statements.
| 8.4 | Other financial assets |
|---|
The table below shows the exposures gross of impairment allowances by stage:
| 03/31/2024 | |||||
|---|---|---|---|---|---|
| Composition | Stage 1 | Stage 2 | Stage 3 | Total | % |
| Other financial assets | 189,167,188 | 11,674 | 32 | 189,178,894 | 100 |
| Total | 189,167,188 | 11,674 | 32 | 189,178,894 | 100 |
| % | 99.99 | 0.01 | 100 | ||
| 12/31/2023 | |||||
| --- | --- | --- | --- | --- | --- |
| Composition | Stage 1 | Stage 2 | Stage 3 | Total | % |
| Other financial assets | 266,226,315 | 266,226,315 | 100 | ||
| Total | 266,226,315 | 266,226,315 | 100 | ||
| % | 100 | 100 |
The ECL related to these types of instruments amounted to 481,896 and 902,568 as of March 31, 2024 and December 31, 2023, respectively.
23
NOTES TO THE CONDENSED CONSOLIDATED INTERIMFINANCIAL STATEMENTS
AS OF MARCH 31, 2024
(Translation of Financial Statements originally issued in Spanish – See Note 44)
(Figures stated in thousands of pesos in constant currency)
| 8.5 | Loans commitment |
|---|
The table below shows the exposures gross of impairment allowances by stage:
| 03/31/2024 | |||||
|---|---|---|---|---|---|
| Composition | Stage 1 | Stage 2 | Stage 3 | Total | % |
| Undrawn commitments of credit cards and checking accounts | 1,715,538,512 | 21,005,838 | 2,923 | 1,736,547,273 | 86.82 |
| Guarantees granted | 206,302,592 | 407,187 | 206,709,779 | 10.34 | |
| Responsibilities for foreign trade operations | 20,386,686 | 20,386,686 | 1.02 | ||
| Overdraft and unused agreed commitments | 36,396,031 | 36,396,031 | 1.82 | ||
| Total | 1,978,623,821 | 21,413,025 | 2,923 | 2,000,039,769 | 100 |
| % | 98.93 | 1.07 | 100 | ||
| 12/31/2023 | |||||
| --- | --- | --- | --- | --- | --- |
| Composition | Stage 1 | Stage 2 | Stage 3 | Total | % |
| Undrawn commitments of credit cards and checking accounts | 2,083,294,102 | 16,180,414 | 3,936 | 2,099,478,452 | 84.14 |
| Guarantees granted | 279,572,003 | 279,572,003 | 11.20 | ||
| Responsibilities for foreign trade operations | 60,816,096 | 60,816,096 | 2.44 | ||
| Overdraft and unused agreed commitments | 55,399,844 | 49,647 | 55,449,491 | 2.22 | |
| Total | 2,479,082,045 | 16,230,061 | 3,936 | 2,495,316,042 | 100 |
| % | 99.35 | 0.65 | 100 |
The related ECL for undrawn commitments of credit cards and checking accounts as of March 31, 2024 and December 31, 2023 amounted to 1,973,187 and 2,116,285, respectively. The ECL related to guarantees granted as of March 31, 2024 and December 31, 2023 amounted to 664,992 and 1,113,764, respectively. The ECL related to responsibilities for foreign trade operations as of March 31, 2024 amounted to 42,713.The ECL related to overdraft and unused agreed commitments as of March 31, 2024 and December 31, 2023 amounted to 1,456 and 64,956, respectively.
In exhibit R “Value adjustment for credit losses – Allowance for uncollectibility risk”, the ECL movements by portfolio and products are also disclosed.
24
NOTES TO THE CONDENSED CONSOLIDATED INTERIMFINANCIAL STATEMENTS
AS OF MARCH 31, 2024
(Translation of Financial Statements originally issued in Spanish – See Note 44)
(Figures stated in thousands of pesos in constant currency)
| 9. | OTHER DEBT SECURITIES |
|---|
The composition of other debt securities as of March 31, 2024 and December 31, 2023 is as follows:
| Composition | 03/31/2024 | 12/31/2023 | ||
|---|---|---|---|---|
| At fair value through OCI | ||||
| Government securities | 280,477,344 | 376,194,747 | ||
| Government securities – Foreign | 40,226,551 | 66,070,185 | ||
| Total at fair value through OCI (1) | 320,703,895 | 442,264,932 | ||
| At amortized cost | ||||
| Government securities | 146,028,929 | 145,653,290 | ||
| Private securities | 11,439,293 | 16,638,207 | ||
| BCRA bills | 9,260,100 | 50,136,761 | ||
| Total at amortized cost | 166,728,322 | 212,428,258 | ||
| Total | 487,432,217 | 654,693,190 | ||
| (1) | In January 2023, the Bank entered<br> into voluntary debt exchange under the terms of section 11, Presidential Decree No. 331/2022<br> issued by the Ministry of Economy. The securities involved in such swap transactions were<br> as follows: | |||
| --- | --- | |||
| · | Argentine<br> government Treasury bills in pesos adjusted by CER – Maturity: 02-17-2023 (X17F3) for<br> a face value of 20,900,000,000. | |||
| --- | --- | |||
| · | Argentine<br> government discount Treasury bills in pesos – Maturity: 02-28-2023 (S28F3) for a face<br> value of 12,893,000,000. | |||
| · | Argentine<br> government Treasury bills in pesos adjusted by CER – Maturity: 01-20-2023 for a face<br> value of 290,000,000. |
As mentioned in Note 5, during March 2023, the following securities entered into the exchange:
| · | Argentine<br> government discount Treasury bills in pesos – Maturity: 06-30-2023 (S3OJ3) for a face<br> value of 26,640,975,851. |
|---|---|
| · | Argentine<br> government Treasury bills in pesos adjusted by CER – Maturity: 06-16-2023 (X16J3) for<br> a face value of 4,516,000,000. |
| · | Argentine<br> government Treasury bills in pesos adjusted by CER – Maturity: 05-19-2023 (X19Y3) for<br> a face value of 1,759,369,713. |
| With almost all the instruments received, the Bank acquired put options with the BCRA. These options<br> give the Bank the opportunity to sell (put option) the underlying asset at a value determined by the applicable BCRA regulations. In<br> this transaction, the options could be exercised up to one day before the maturity of the underlying instrument. Considering the<br> terms and conditions of these put options established by the BCRA, they are considered "out of the money" with fair value<br> amounted to zero. As of March 31, 2024 and December 31, 2023, their notional value amounted to 118,146,028 and<br> 136,682,342, respectively (see also Note 5). | |
| --- | |
| 10. | FAIR VALUE QUANTITATIVE AND QUALITATIVE DISCLOSURES |
| --- | --- |
The fair value is the amount at which an asset can be exchanged, or at which a liability can be settled, in mutual independent terms and conditions between participants of the principal market (or the most advantageous market) who are duly informed and willing to transact in an orderly and current transaction, at the measurement date under the current market conditions whether the price is directly observable or estimated using a valuation technique under the assumption that the Bank is an ongoing business.
When a financial instrument is quoted in a liquid and active market, its price in the market in a real transaction provides the most reliable evidence of its fair value. Nevertheless, when there is no quoted price in the market or it cannot be evidence of the fair value of such instrument, in order to determine such fair value, the entities may use the market value of another instrument with similar characteristics, the analysis of discounted cash flows or other applicable techniques, which shall be significantly affected by the assumptions used.
25
NOTES TO THE CONDENSED CONSOLIDATED INTERIMFINANCIAL STATEMENTS
AS OF MARCH 31, 2024
(Translation of Financial Statements originally issued in Spanish – See Note 44)
(Figures stated in thousands of pesos in constant currency)
Although the Bank’s Management has used its best judgment to estimate the fair values of its financial instruments, any technique to perform such estimate implies certain inherent fragility level.
Fair value hierarchy
The Bank uses the following hierarchy to determine and disclose the fair value of financial instruments, according to the valuation technique applied:
| - | Level 1: quoted prices (unadjusted) observable<br> in active markets that the Bank accesses to at the measurement day for identical assets or<br> liabilities. The Bank considers markets as active only if there are sufficient trading activities<br> with respect to the volume and liquidity of the identical assets or liabilities and when<br> there are binding and exercisable price quotes available at the end of each period or fiscal<br> year, as applicable. |
|---|---|
| - | Level 2: Valuation techniques for which<br> the data and variables having a significant impact on the determination of the fair value<br> recognized or disclosed are observable for the asset or liability, either directly or indirectly.<br> Such inputs include quoted prices for similar assets or liabilities in active markets, quoted<br> prices for identical instruments in inactive markets and observable inputs other than quoted<br> prices, such as interest rates and yield curves, implied volatilities, and credit spreads.<br> In addition, adjustments to level 2 inputs may be required for the condition or location<br> of the asset or the extent to which it relates to items that are comparable to the valued<br> instrument. However, if such adjustments are based on unobservable inputs that are significant<br> to the entire measurement, the Bank will classify the instruments as Level 3. |
| --- | --- |
| - | Level 3: Valuation techniques for which<br> the data and variables having a significant impact on the determination of the fair value<br> recognized or disclosed are not based on observable market information. |
| --- | --- |
The following tables show the hierarchy in the Bank’s financial asset and liability at fair value measurement on a recurring basis, as of March 31, 2024 and December 31, 2023:
| Financial assets and financial liabilities measured at fair value on <br><br>a recurring basis as of March 31, 2024 | ||||||||
|---|---|---|---|---|---|---|---|---|
| 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 | 4,332,994,812 | 788,768,144 | 3,544,217,032 | 9,636 | ||||
| Derivatives financial instruments (1) | 57,581,453 | 82,263 | 57,499,190 | |||||
| Other financial assets | 39,533,856 | 39,326,252 | 207,604 | |||||
| Financial assets delivered as guarantee | 27,207,398 | 27,207,398 | ||||||
| Equity instruments at fair value through profit or loss | 3,318,120 | 1,238,707 | 2,079,413 | |||||
| At fair value through OCI | ||||||||
| Other debt securities | 320,703,895 | 320,703,895 | ||||||
| Total | 4,781,339,534 | 1,177,326,659 | 3,601,716,222 | 2,296,653 | ||||
| Financial liabilities | ||||||||
| At fair value through profit or loss | ||||||||
| Liabilities at fair value through profit or loss | 19,867,094 | 19,867,094 | ||||||
| Derivatives financial instruments | 5,950,433 | 26,511 | 5,923,922 | |||||
| Total | 25,817,527 | 19,893,605 | 5,923,922 | |||||
| (1) | Includes the premium corresponding to the<br> subscription of put options. | |||||||
| --- | --- |
26
NOTES TO THE CONDENSED CONSOLIDATED INTERIMFINANCIAL STATEMENTS
AS OF MARCH 31, 2024
(Translation of Financial Statements originally issued in Spanish – See Note 44)
(Figures stated in thousands of pesos in constant currency)
| Financial<br> assets and financial liabilities measured at fair value<br> on a recurring basis as of December 31, 2023 | ||||||||
|---|---|---|---|---|---|---|---|---|
| Description | Total | Level 1 | Level 2 | Level 3 | ||||
| Financial assets | ||||||||
| At fair value through profit or loss | ||||||||
| Debt securities at fair value through profit or loss | 2,656,588,170 | 2,625,259,346 | 31,318,186 | 10,638 | ||||
| Derivatives financial instruments | 19,928,075 | 995 | 19,927,080 | |||||
| Other financial assets | 40,014,526 | 39,918,396 | 96,130 | |||||
| Financial assets delivered as guarantee | 38,252,478 | 38,252,478 | ||||||
| Equity instruments at fair value through profit or loss | 4,872,886 | 1,722,437 | 3,150,449 | |||||
| At fair value through OCI | ||||||||
| Other debt securities | 442,264,932 | 438,090,357 | 4,174,575 | |||||
| Total | 3,201,921,067 | 3,143,244,009 | 55,419,841 | 3,257,217 | ||||
| Financial liabilities | ||||||||
| At fair value through profit or loss | ||||||||
| Liabilities at fair value through profit or loss | 20,962,446 | 20,962,446 | ||||||
| Derivatives financial instruments | 4,302,846 | 61,240 | 4.241,606 | |||||
| Total | 25,265,292 | 21,023,686 | 4,241,606 |
Description of the valuation process
The fair value of instruments categorized as level 1 was assessed by using quoted prices effective at the end of each period or fiscal year, as applicable, in active markets for identical assets or liabilities, if representative. Currently, for most of the government and private securities, there are two principal markets in which the Bank operates: BYMA and MAE. Additionally, in the case of derivatives, both MAE and Mercado a Término de Rosario SA (ROFEX) are deemed active markets.
On the other hand, for certain assets and liabilities that do not have an active market, categorized as level 2, the Bank used valuation techniques that included the use of market transactions performed under mutual independent terms and conditions, between interested and duly informed parties, provided that they are available as well as references to the current fair value of another instrument being substantially similar, or otherwise the analysis of cash flows discounted at rates built from market information of similar instruments.
In addition, certain assets and liabilities included in this category were valued using price quotes of identical instruments in “less active markets”.
Finally, the Bank has categorized as level 3 those assets and liabilities for which there are no identical or similar transactions in the market. To determine the market value of these instruments the Bank used valuation techniques based on own assumptions and independent appraisers’ valuations. For this approach, the Bank mainly used the cash flow discount model.
As of March 31, 2024 and December 31, 2023, 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 financial assets recognized at fair value categorized as level 3:
27
NOTES TO THE CONDENSED CONSOLIDATED INTERIMFINANCIAL STATEMENTS
AS OF MARCH 31, 2024
(Translation of Financial Statements originally issued in Spanish – See Note 44)
(Figures stated in thousands of pesos in constant currency)
| As of March 31, 2024 | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| Reconciliation | Debt instruments | Other financial<br><br> assets | Equity <br><br>instruments at<br><br> fair value through<br><br> profit or loss | ||||||
| Amount at the beginning | 10,638 | 96,130 | 3,150,449 | ||||||
| Transfers to level 3 | |||||||||
| Transfers from level 3 | |||||||||
| Profit and loss | 41,043 | 165,079 | 1,786 | ||||||
| Recognition and derecognition | (2,760 | ) | 18,222 | ||||||
| Monetary effects | (39,285 | ) | (71,827 | ) | (1,072,822 | ) | |||
| Amount at the end of the period | 9,636 | 207,604 | 2,079,413 | ||||||
| As of December 31, 2023 | |||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Reconciliation | Debt instruments | Other financial<br><br> assets | Equity<br><br> instruments at<br><br> fair value through<br><br> profit or loss | ||||||
| Amount at the beginning | 4,872,074 | 233,319 | 3,234,230 | ||||||
| Transfers to level 3 | |||||||||
| Transfers from level 3 (1) | (213,223 | ) | |||||||
| Profit and loss | 3,535,732 | 56,497 | 3,411,737 | ||||||
| Recognition and derecognition | (5,238,962 | ) | 38,030 | ||||||
| Monetary effects | (3,158,206 | ) | (193,686 | ) | (3,320,325 | ) | |||
| Amount at the end of the fiscal year | 10,638 | 96,130 | 3,150,449 | ||||||
| (1) | Transfer of equity instruments at fair<br> value through profit or loss from level 3 to level 1 that were measured using quoted prices<br> observable in active markets as of December 31, 2023. | ||||||||
| --- | --- |
The fair values of instruments measured at level 3 are determined by the Bank based on valuation techniques derived from the "income method", whose main unobservable data are related to discount rates, and on which a reasonable change in such input data would not generate significant effects on the Financial Statements taken as a whole.
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.
Except for the foregoing, as of March 31, 2024 and December 31, 2023, the Bank has not recognized any transfers between levels 1, 2 and 3.
Financial assets and liabilities not measured at fair value
Next follows a description of the main methods and assumptions used to determine the fair values of financial instruments not recognized at their fair value in these condensed consolidated interim Financial Statements:
| - | Instruments with fair value similar to<br> 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 instruments:<br> the fair value of financial assets was recognized discounting future cash flows at current<br> market rates for each fiscal year for financial instruments of similar characteristics. The<br> estimated fair value of fixed-interest rate deposits and liabilities was assessed discounting<br> future cash flows by using estimated interest rates for deposits or placings with similar<br> maturities to those of the Bank’s portfolio. |
| --- | --- |
28
NOTES TO THE CONDENSED CONSOLIDATED INTERIMFINANCIAL STATEMENTS
AS OF MARCH 31, 2024
(Translation of Financial Statements originally issued in Spanish – See Note 44)
(Figures stated in thousands of pesos in constant currency)
| - | For public listed assets and liabilities,<br> or those for which the prices are reported by certain renowned pricing providers, the fair<br> value was determined based on such prices. |
|---|
The following table shows a comparison between the fair value and the carrying amount of financial instruments not measured at fair value as of March 31, 2024 and December 31, 2023:
| 03/31/2024 | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Composition | Carrying<br><br> amount | Level 1 | Level 2 | Level 3 | Fair value | |||||
| Financial assets | ||||||||||
| Cash and deposits in banks | 1,149,471,536 | 1,149,471,536 | 1,149,471,536 | |||||||
| Repo transactions | 279,193,344 | 279,193,344 | 279,193,344 | |||||||
| Other financial assets | 188,696,998 | 188,696,998 | 188,696,998 | |||||||
| Loans and other financing | 2,500,584,654 | 2,279,263,104 | 2,279,263,104 | |||||||
| Other debt securities | 166,728,322 | 205,633,260 | 3,262,571 | 208,895,831 | ||||||
| Financial assets delivered as guarantee | 142,987,155 | 142,987,155 | 142,987,155 | |||||||
| Total | 4,427,662,009 | 1,965,982,293 | 3,262,571 | 2,279,263,104 | 4,248,507,968 | |||||
| Financial liabilities | ||||||||||
| Deposits | 5,035,760,917 | 2,412,959,857 | 2,640,250,487 | 5,053,210,344 | ||||||
| Repo transactions | 20,856,886 | 20,856,886 | 20,856,886 | |||||||
| Other financial liabilities | 474,250,449 | 458,488,740 | 14,963,799 | 473,452,539 | ||||||
| Financing received from the BCRA and other financial institutions | 19,743,387 | 12,225,563 | 7,517,824 | 19,743,387 | ||||||
| Issued corporate bonds | 67,178,933 | 67,047,681 | 67,047,681 | |||||||
| Subordinated corporate bonds | 353,562,657 | 318,116,077 | 318,116,077 | |||||||
| Total | 5,971,353,229 | 2,904,531,046 | 407,645,381 | 2,640,250,487 | 5,952,426,914 | |||||
| 12/31/2023 | ||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Composition | Carrying<br><br> amount | Level 1 | Level 2 | Level 3 | Fair value | |||||
| Financial assets | ||||||||||
| Cash and deposits in banks | 1,824,170,723 | 1,824,170,721 | 1,824,170,721 | |||||||
| Repo transactions | 933,357,661 | 933,357,661 | 933,357,661 | |||||||
| Other financial assets | 265,323,747 | 265,323,747 | 265,323,747 | |||||||
| Loans and other financing | 2,780,228,296 | 2,444,503,249 | 2,444,503,249 | |||||||
| Other debt securities | 212,428,258 | 139,541,214 | 84,249,560 | 223,790,774 | ||||||
| Financial assets delivered as guarantee | 163,241,280 | 163,241,279 | 163,241,279 | |||||||
| Total | 6,178,749,965 | 3,325,634,622 | 84,249,560 | 2,444,503,249 | 5,854,387,431 | |||||
| Financial liabilities | ||||||||||
| Deposits | 5,110,022,614 | 3,171,181,327 | 1,941,212,128 | 5,112,393,455 | ||||||
| Repo transactions | 35,784,780 | 35,784,780 | 35,784,780 | |||||||
| Other financial liabilities | 567,811,773 | 549,420,901 | 17,636,589 | 567,057,490 | ||||||
| Financing received from the BCRA and other financial institutions | 30,019,635 | 11,838,032 | 9,313,006 | 21,151,038 | ||||||
| Issued corporate bonds | 89,250,730 | 90,442,470 | 90,442,470 | |||||||
| Subordinated corporate bonds | 497,665,193 | 421,320,679 | 421,320,679 | |||||||
| Total | 6,330,554,725 | 3,768,225,040 | 538,712,744 | 1,941,212,128 | 6,248,149,912 |
29
NOTES TO THE CONDENSED CONSOLIDATED INTERIMFINANCIAL STATEMENTS
AS OF MARCH 31, 2024
(Translation of Financial Statements originally issued in Spanish – See Note 44)
(Figures stated in thousands of pesos in constant currency)
| 11. | BUSINESS COMBINATIONS |
|---|---|
| 11.1 | Macro Agro SAU (formerly known as Comercio<br> Interior SAU) |
| --- | --- |
On May 18, 2023, the Bank acquired from Inversora Juramento SA, 100% of the capital stock and votes of Macro Agro SAU (formerly known as Comercio Interior SAU), a company engaged in the grain brokerage business.
The Special Shareholders’ Meeting held on October 6, 2023 deemed it appropriate and approved the change of its corporate name to “Macro Agro SAU” and consequently, subject to the authorization of the Business Associations Regulatory Agency of the Province of Santa Fe (IGPJ), proposed the amendment of section 1 of the by-laws. On October 27, 2023, the proceedings were filed with the IGPJ. Additionally, on March 5, 2024, the Bank was notified of the resolution of the IGPJ, which approved the reform of the by-laws with the name of Macro Agro SAU.
Assets acquired and liabilities assumed
The fair value of the assets identified and liabilities assumed as of the acquisition date is as follows:
| Composition | Fair value recognized<br><br> on acquisition | |
|---|---|---|
| Assets | ||
| Cash and deposits in banks | 72,448 | |
| Debt securities at fair value through profit or loss | 1,495,698 | |
| Loans and other financing | 209,309 | |
| Financial assets delivered as guarantee | 2,880,191 | |
| Other financial assets | 11,209,622 | |
| Property, plant and equipment | 202,403 | |
| Intangible assets | 44,994 | |
| Other non-financial assets | 166,279 | |
| 16,280,944 | ||
| Liabilities | ||
| Other financial liabilities | 11,107,564 | |
| Provisions | 31,334 | |
| Current income tax liabilities | 188,757 | |
| Deferred income tax liabilities | 223,046 | |
| Other non-financial liabilities | 3,087,386 | |
| 14,638,087 | ||
| Net assets acquired at fair value | 1,642,857 |
The goodwill generated by the acquisition of Macro Agro SAU (formerly known as Comercio Interior SAU) amounted to 515,451.
In accordance with the share purchase contract, the transaction price was set at USD 5,218,800, which will be paid in variable annual installments using the proceeds from the dividends of Macro Agro SAU (formerly known as Comercio Interior SAU). Thus, the Bank assigns 100% of the rights over the dividends in favor of the seller, up to the full payment of the purchase price. Each installment will become due within fifteen days as from the Shareholders’ Meeting approval of the Financial Statements of Macro Agro SAU (formerly known as Comercio Interior SAU). The first installment will become due in 2024.
To measure the liabilities arising from this transaction the Bank estimated the company's future income, discounting them at its own business rate. As a consequence, at the acquisition date, the liability amounted to USD 2,973,375.
30
NOTES TO THE CONDENSED CONSOLIDATED INTERIMFINANCIAL STATEMENTS
AS OF MARCH 31, 2024
(Translation of Financial Statements originally issued in Spanish – See Note 44)
(Figures stated in thousands of pesos in constant currency)
On September 29, 2023, Macro Agro SAU (formerly known as Comercio Interior SAU) distributed cash dividends amounting to 440,000 (not restated). Those dividends were received by Banco Macro SA on October 2, 2023. As it was explained in the previous paragraphs, dividends were used to pay the liability arising from the purchase, which decreased by USD 558,651.70.
Additionally, on March 12, 2024, Macro Agro SAU (formerly known as Comercio Interior SAU) distributed cash dividends amounting to 450,669 (not restated). Those dividends were received by Banco Macro SA on March 12, 2024 and were used to pay the liability arising from the purchase, which decreased by USD 430,639.40.
| 11.2 | Banco BMA SAU (formerly known as Banco<br> Itaú Argentina SA) and its subsidiaries |
|---|
On August 23, 2023, Banco Macro SA entered into a stock purchase agreement with Itaú Unibanco Holding SA, through its affiliates Itaú Unibanco SA, Banco Itaú BBA SA and Itaú Consultoria de Valores Mobiliários e Participaçoes SA (collectively, “Itaú”), pursuant to which, subject to certain conditions (substantially the approval of the transaction by the BCRA), the Bank would acquire from Itaú the shares representing 100% of the capital stock and votes of Banco Itaú Argentina SA, Itaú Asset Management SA and Itaú Valores SA.
On November 2, 2023, the Board of Directors of the BCRA authorized the abovementioned purchase, as per the following breakdown:
| · | Banco Itaú Argentina SA: 100% of the capital stock and votes of Banco Itaú Argentina<br> SA were acquired, represented by 729,166,165 ordinary shares and 14,565,089 preferred shares,<br> out of which: (i) 721,697,119 ordinary shares and 14,565,089 preferred shares representing<br> 98.995733% of capital stock were acquired from Itaú Unibanco SA and (ii) 7,469,046<br> ordinary shares representing 1.004267% of capital stock were acquired from Itaú BBA<br> SA. |
|---|---|
| · | Itaú Asset Management SA: 11,950 shares representing 13.00% of the capital stock of Itaú<br> Asset Management SA were directly acquired from Itaú Unibanco SA, and indirectly,<br> 80,000 shares, which represent 87.00% of the capital stock of Itaú Asset Management<br> SA through the acquisition of Banco Itaú Argentina SA. |
| --- | --- |
| · | Itaú Valores SA: 6,814,535 shares representing 13.00% of the capital stock and votes of Itaú<br> Valores SA were directly acquired from Itaú Consultoria de Valores Mobiliários<br> e Participações SA; and indirectly, 45,604,965 shares, representing 87.00%<br> of the capital stock and votes of Itaú Valores SA, through the acquisition of Banco<br> Itaú Argentina SA. |
| --- | --- |
31
NOTES TO THE CONDENSED CONSOLIDATED INTERIMFINANCIAL STATEMENTS
AS OF MARCH 31, 2024
(Translation of Financial Statements originally issued in Spanish – See Note 44)
(Figures stated in thousands of pesos in constant currency)
Assets acquired and liabilities assumed
The fair value of the assets identified acquired and liabilities assumed as of the acquisition date is as follows:
| Composition | Fair value recognized<br><br> on acquisition | |
|---|---|---|
| Assets | ||
| Cash and deposits in banks | 244,073,690 | |
| Debt securities at fair value through profit or loss | 77,679,968 | |
| Derivative financial instruments | 33,657,936 | |
| Repo transactions | 387,474,275 | |
| Other financial assets | 25,185,038 | |
| Loans and other financing | 440,580,495 | |
| Other debt securities | 104,160,985 | |
| Financial assets delivered as guarantee | 61,718,290 | |
| Current income tax assets | 309,272 | |
| Equity instruments at fair value through profit or loss | 288,630 | |
| Investments in associates and joint arrangements | 14,555,079 | |
| Property, plant and equipment | 56,772,506 | |
| Intangible assets | 32,293,671 | |
| Deferred income tax assets | 28,450,209 | |
| Other non-financial assets | 11,221,191 | |
| Non-current assets held for sale | 19,672,574 | |
| 1,538,093,809 | ||
| Liabilities | ||
| Deposits | 1,023,500,757 | |
| Liabilities at fair value through profit or loss | 30,849,814 | |
| Derivative financial instruments | 13,006,990 | |
| Other financial liabilities | 28,932,632 | |
| Financing received from the BCRA and other financial institutions | 16,172,479 | |
| Issued corporate bonds | 8,977,347 | |
| Current income tax liabilities | 30,412,562 | |
| Provisions | 4,524,337 | |
| Deferred income tax liabilities | 26,848,159 | |
| Other non-financial liabilities | 83,121,214 | |
| 1,266,346,291 | ||
| Net assets acquired at fair value | 271,747,518 |
For the valuation of the core deposits intangible, the favorable source of funds methodology was used. This method determines the spread between the cost of central deposits acquired and the cost of an alternative source of financing over the estimated life of the core deposit base. As a result of this transaction, the intangible asset recognized amounted to 7,861,270. See Note 10 for additional fair value valuation techniques for other assets acquired and liabilities assumed in the business combination.
The price of this transaction was established at USD 50,000,000, which was set at the time of the agreement and paid on November 3, 2023, and an additional amount resulting from the adjustment of the result obtained by Banco BMA SAU (formerly known as Banco Itaú Argentina SA), BMA Asset Management SA (formerly known Itaú Asset Management SA) and BMA Valores SA (formerly known as Itaú Valores SA) between April 1, 2023 and the closing date established in the purchase contract, which was agreed between the parties in the month of May 2024 for an amount of USD 7,564,706.
If the business combination had taken place at the beginning of the year, the interest income and commission income of the Bank would have amounted to 4,286,887,269 and 399,683,399, respectively, and the net income for the fiscal year ended December 31, 2023 would have amounted to 899,534,942.
32
NOTES TO THE CONDENSED CONSOLIDATED INTERIMFINANCIAL STATEMENTS
AS OF MARCH 31, 2024
(Translation of Financial Statements originally issued in Spanish – See Note 44)
(Figures stated in thousands of pesos in constant currency)
As the amount of the net assets acquired exceeds the fair value of the price paid, including the estimated price adjustment based on the information available, the Bank recorded a gain generated by this acquisition for 237,694,794, which is recorded in “Income from associates and joint arrangements” for the fiscal year ended December 31, 2023. The gain was related to the price of this transaction determined in the arm’s length basis and the net assets acquired.
The calculation of this gain is subject to change because the estimates of all fair values are being reviewed and may be modified during the period of one year from the acquisition date as established by IFRS 3. However, the Bank’s Management does not expect significant changes in these amounts.
The Shareholders’ Meeting held on May 6, 2024, approved the pre-merger by absorption commitment of Banco BMA SAU by Banco Macro SA, whereby Banco Macro SA will incorporate Banco BMA SAU retroactively as of January 1, 2024 based on the separate Financial Statements of each of the companies, prepared as of December 31, 2023 and the special consolidated merger statement of financial position as of the same date. As of the date of issuance of these condensed consolidated interim Financial Statements, the Bank is in process of obtaining the administrative approval of such merger before the CNV, and has also requested the authorization of the respective merger before the BCRA.
| 12. | INVESTMENTS IN ASSOCIATES AND JOINT BUSINESSES |
|---|---|
| 12.1 | Associates |
| --- | --- |
The following table provides summarized financial information about the Bank’s investment in its associates:
| Proportional | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Bank’s | Financial position | Loss of the period | |||||||||||
| Entity | interest | 03/31/2024 | 12/31/2023 | 03/31/2024 | 03/31/2023 | ||||||||
| Macro Warrants SA (1) and (2) | 5 | % | 17,484 | 17,559 | (76 | ) | (1,904 | ) | |||||
| Play Digital SA (1) and (2) | 9.19 | % | 602,278 | 1,011,696 | (409,417 | ) | (1,028,776 | ) | |||||
| Alianza SGR (1) | 24.98 | % | 3,010 | 4,564 | (1,554 | ) | |||||||
| (1) | The existence of significant influence<br> is evidenced by the representation that the Bank has in the Board of Directors of these associates. | ||||||||||||
| --- | --- | ||||||||||||
| (2) | To measure this investment, accounting<br> information of this associate as of March 31, 2024 and December 31, 2023 has been<br> used. Additionally, significant transactions conducted or events that occurred between January 1,<br> 2024 and March 31, 2024, have been considered. | ||||||||||||
| --- | --- | ||||||||||||
| 12.2 | Joint ventures | ||||||||||||
| --- | --- |
The following table provides summarized financial information about the Bank’s investment in its joint ventures:
| Proportional | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Bank’s | Financial position | Profit (Loss) of the period | |||||||||||
| Entity | interest | 03/31/2024 | 12/31/2023 | 03/31/2024 | 03/31/2023 | ||||||||
| Banco Macro SA – Bizland SAU Unión transitoria | 50 | % | 1,350,097 | 1,256,203 | 244,171 | 196,498 | |||||||
| Finova SA | 50 | % | 96,378 | 143,357 | (46,981 | ) | (17,978 | ) |
33
NOTES TO THE CONDENSED CONSOLIDATED INTERIMFINANCIAL STATEMENTS
AS OF MARCH 31, 2024
(Translation of Financial Statements originally issued in Spanish – See Note 44)
(Figures stated in thousands of pesos in constant currency)
| 13. | OTHER NON-FINANCIAL ASSETS |
|---|
The composition of the other non-financial assets as of March 31, 2024 and December 31, 2023 is as follows:
| Composition | 03/31/2024 | 12/31/2023 | ||
|---|---|---|---|---|
| Investment property (see Exhibit F) | 44,613,358 | 43,992,874 | ||
| Advanced prepayments | 14,447,892 | 14,112,895 | ||
| Tax advances | 5,212,734 | 21,902,373 | ||
| Other | 3,328,097 | 3,054,251 | ||
| Total | 67,602,081 | 83,062,393 | ||
| 14. | 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<br> of the Bank or of the parent of the Bank; |
| --- | --- |
| - | members of the same group; |
| --- | --- |
| - | one entity is an associate (or an associate<br> of a member of a group of which the other entity is a member). |
| --- | --- |
Key management personnel are those persons having authority and responsibility for planning, directing and controlling the activities of the Bank, directly or indirectly. The Bank considers as key management personnel, for the purposes of IAS 24, the members of the Board of Directors and the senior management members of the Risk Management Committee, the Assets and Liabilities Committee and the Senior Credit Committee.
As of March 31, 2024 and December 31, 2023, amounts balances related to transactions generated with related parties are as follows:
| As<br> of March 31, 2024 | |||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Main<br> subsidiaries (1) | |||||||||||||||||
| Macro<br><br> Bank<br><br> Limited | Macro<br><br> Securities<br><br> SAU (2) | Argenpay<br><br> SAU | Fintech<br> <br><br> SGR | Macro<br><br> <br>Agro<br> SAU<br><br> (formerly<br><br> known as<br><br> Comercio<br><br> Interior<br><br> SAU) | Banco<br><br> BMA SAU | Associates | Key<br><br> management<br><br> personnel<br><br> (3) | Other<br><br> related<br><br> parties | Total | ||||||||
| Assets | |||||||||||||||||
| Cash and deposits in banks | 6,870 | 6,870 | |||||||||||||||
| Debt securities at fair value<br> through profit or loss | 371,250 | 371,250 | |||||||||||||||
| Other financial assets | 7,557,567 | 592,355 | 12,276,510 | 20,426,432 | |||||||||||||
| Loans and other financing (4) | |||||||||||||||||
| Other financial entities | 12,870,060 | 12,870,060 | |||||||||||||||
| Documents | 420,520 | 420,520 | |||||||||||||||
| Overdraft | 164 | 3,685 | 2,660,487 | 2,664,336 | |||||||||||||
| Credit cards | 566,957 | 104,447 | 671,404 | ||||||||||||||
| Lease | 24,651 | 48,086 | 72,737 | ||||||||||||||
| Personal loans | 552 | 552 | |||||||||||||||
| Mortgage loans | 2,019,220 | 2,019,220 | |||||||||||||||
| Other loans (5) | 579,444 | 19,796,238 | 20,375,682 | ||||||||||||||
| Guarantee<br> granted | 26,893,116 | 26,893,116 | |||||||||||||||
| Total<br> Assets | 6,870 | 7,557,567 | 24,815 | 12,870,060 | 3,762,213 | 62,570,654 | 86,792,179 |
34
NOTES TO THE CONDENSED CONSOLIDATED INTERIMFINANCIAL STATEMENTS
AS OF MARCH 31, 2024
(Translation of Financial Statements originally issued in Spanish – See Note 44)
(Figures stated in thousands of pesos in constant currency)
| As of March 31, 2024 | ||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Main subsidiaries (1) | ||||||||||||||||||
| **** | Macro Bank Limited | Macro Securities SAU (2) | Argenpay SAU | Fintech SGR | Macro Agro SAU (formerly known as Comercio Interior SAU) | Banco BMA SAU | Associates | Key management personnel (3) | Other related parties | Total | ||||||||
| Liabilities | ||||||||||||||||||
| Deposits | 50,573,810 | 222,945 | 7,247 | 11,827 | 363,367 | 29,170,414 | 16,330,793 | 96,680,403 | ||||||||||
| Other financial liabilities | 487,232 | 1,270,258 | 1,757,490 | |||||||||||||||
| Issued corporate bonds | 2,175,000 | 2,175,000 | ||||||||||||||||
| Subordinated corporate bonds | 842,027 | 132,952 | 974,979 | |||||||||||||||
| Other non-financial<br> liabilities | 2,450,680 | 2,450,680 | ||||||||||||||||
| Total<br> liabilities | 52,748,810 | 222,945 | 849,274 | 144,779 | 363,367 | 29,657,646 | 20,051,731 | 104,038,552 | ||||||||||
| (1) | These transactions are eliminated during<br> the consolidation process. | |||||||||||||||||
| --- | --- | |||||||||||||||||
| (2) | It includes the balance amounts from its<br> subsidiary Macro Fondos SGFCISA. | |||||||||||||||||
| (3) | Includes close family members of the key<br> management personnel. | |||||||||||||||||
| (4) | The maximum financing amount for Loans and<br> other financing as of March 31, 2024 for Macro Securities SAU, Macro Agro SAU (formerly<br> known as Comercio Interior SAU), Banco BMA SAU, Key management personnel and Other related<br> parties amounted to 8,678,890, 36,658, 14,026,609, 4,187,782 and 62,143,057, respectively. | |||||||||||||||||
| (5) | It is related to Loans and other financing<br> not disclosed in other items, mainly Other loans, Financing of foreign exchange transactions<br> and Loans with government securities. | |||||||||||||||||
| As of December 31, 2023 | ||||||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | ||||||
| Main subsidiaries (1) | ||||||||||||||||||
| Macro Bank Limited | Macro Securities SAU (2) | Argenpay SAU | Fintech SGR | Macro Agro SAU (formerly known as Comercio Interior SAU) | Associates | Key management personnel (3) | Other related parties | Total | ||||||||||
| Assets | ||||||||||||||||||
| Cash and deposits<br> in banks | 9,822 | 9,822 | ||||||||||||||||
| Debt securities at fair value<br> through profit or loss | ||||||||||||||||||
| Other financial assets | 12,624,218 | 1,634,399 | 10,825,515 | 25,084,132 | ||||||||||||||
| Loans and other financing (4) | ||||||||||||||||||
| Documents | 1,947,565 | 1,947,565 | ||||||||||||||||
| Overdraft | 390,451 | 4,036,319 | 4,426,770 | |||||||||||||||
| Credit<br> cards | 917,532 | 195,656 | 1,113,188 | |||||||||||||||
| Lease | 46,966 | 78,240 | 125,206 | |||||||||||||||
| Personal<br> loans | 8,433 | 8,433 | ||||||||||||||||
| Mortgage<br> loans | 1,913,368 | 1,913,368 | ||||||||||||||||
| Other<br> loans (5) | 573,449 | 8,911,307 | 9,484,756 | |||||||||||||||
| Guarantee granted | 39,963,568 | 39,963,568 | ||||||||||||||||
| Total Assets | 9,822 | 12,624,218 | 46,966 | 5,437,632 | 65,958,170 | 84,076,808 |
35
NOTES TO THE CONDENSED CONSOLIDATED INTERIMFINANCIAL STATEMENTS
AS OF MARCH 31, 2024
(Translation of Financial Statements originally issued in Spanish – See Note 44)
(Figures stated in thousands of pesos in constant currency)
| As of December 31, 2023 | |||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Main subsidiaries (1) | |||||||||||||||||
| **** | Macro Bank Limited | Macro Securities SAU (2) | Argenpay SAU | Fintech SGR | Macro Agro SAU (formerly known as Comercio Interior SAU) | Associates | Key management personnel (3) | Other related parties | Total | ||||||||
| Liabilities | |||||||||||||||||
| Deposits | 23,933,528 | 392,024 | 37,422 | 16,936 | 461,417 | 37,397,939 | 32,895,381 | 95,134,647 | |||||||||
| Liabilities at fair value through<br> profit or loss | 20,950,673 | 20,950,673 | |||||||||||||||
| Other financial liabilities | 7,745,598 | 1,447,158 | 9,192,756 | ||||||||||||||
| Issued corporate bonds | 4,374,264 | 4,374,264 | |||||||||||||||
| Subordinated corporate bonds | 1,185,215 | 187,139 | 1,372,354 | ||||||||||||||
| Other non-financial<br> liabilities | 3,823,505 | 3,823,505 | |||||||||||||||
| Total<br> liabilities | 28,307,792 | 392,024 | 1,222,637 | 204,075 | 461,417 | 45,143,537 | 59,116,717 | 134,848,199 | |||||||||
| (1) | These transactions are eliminated during<br> the consolidation process. | ||||||||||||||||
| --- | --- | ||||||||||||||||
| (2) | It includes the balance amounts from its<br> subsidiary Macro Fondos SGFCISA. | ||||||||||||||||
| (3) | Includes close family members of the key<br> management personnel. | ||||||||||||||||
| (4) | The maximum financing amount for Loans and<br> other financing as of December 31, 2023 for Macro Securities SAU, Macro Agro SAU (formerly<br> known as Comercio Interior SAU), Key management personnel and Other related parties amounted<br> to 32,806,934, 103,864, 5,704,796 and 78,105,917, respectively. | ||||||||||||||||
| (5) | It is related to Loans and other financing<br> not disclosed in other items, mainly Other loans, Financing of foreign exchange transactions<br> and Loans with government securities. |
Profit or loss related to transactions generated during the three-month periods ended March 31, 2024 and 2023 with related parties are as follows:
| As<br> of March 31, 2024 | |||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Main subsidiaries (1) | |||||||||||||||||||||||
| Macro<br><br> Bank<br><br> Limited | Macro<br><br> Securities<br><br> SAU (2) | Argenpay<br><br> SAU | Fintech<br><br> SGR | Macro<br><br> Agro SAU<br><br> (formerly<br><br> known as<br><br> Comercio<br><br> Interior<br><br> SAU) | Banco<br><br> BMA SAU | Associates | Key<br><br> management<br><br> personnel (3) | Other<br><br> related<br><br> parties | Total | ||||||||||||||
| Income / (loss) | |||||||||||||||||||||||
| Interest income | 58,218 | 5,126 | 159,037 | 1 | 1,016,539 | 2,121,053 | 3,359,974 | ||||||||||||||||
| Interest expense | (46,575 | ) | (24,968 | ) | (22,797 | ) | (646,982 | ) | (741,322 | ) | |||||||||||||
| Commissions income | 27,157 | 1,939 | 173 | 237 | 144,980 | 174,486 | |||||||||||||||||
| Commissions expense | (2,985 | ) | (87 | ) | (95,605 | ) | (98,677 | ) | |||||||||||||||
| Other operating income | 1,482,493 | 2,392 | 755 | 6,105 | 1,491,745 | ||||||||||||||||||
| Administrative expense | (1,040,142 | ) | (1,040,142 | ) | |||||||||||||||||||
| Other operating<br> expense | (301,475 | ) | (301,475 | ) | |||||||||||||||||||
| Total<br> income / (loss) | 85,375 | 1,481,447 | 7,518 | 112,462 | (24,039 | ) | 993,892 | 187,934 | 2,844,589 | ||||||||||||||
| (1) | These transactions are eliminated during<br> the consolidation process. | ||||||||||||||||||||||
| --- | --- | ||||||||||||||||||||||
| (2) | It includes the balance amounts from its<br> subsidiary Macro Fondos SGFCISA. | ||||||||||||||||||||||
| (3) | Includes close family members of the key<br> management personnel. |
36
NOTES TO THE CONDENSED CONSOLIDATED INTERIMFINANCIAL STATEMENTS
AS OF MARCH 31, 2024
(Translation of Financial Statements originally issued in Spanish – See Note 44)
(Figures stated in thousands of pesos in constant currency)
| As of March 31, 2023 | |||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Main<br> subsidiaries (1) | |||||||||||||||||||
| Macro<br><br> Bank<br><br> Limited | Macro<br><br> Securities<br><br> SAU (2) | Argenpay<br><br> SAU | Fintech<br><br> SGR | Associates | Key<br><br> management<br><br> personnel (3) | Other<br><br> related<br><br> parties | Total | ||||||||||||
| Income / (loss) | |||||||||||||||||||
| Interest income | 3,177 | 420,442 | 1,533,363 | 1,956,982 | |||||||||||||||
| Interest expense | (31,716 | ) | (112,160 | ) | (78,125 | ) | (222,001 | ) | |||||||||||
| Commissions income | 44,764 | 1,133 | 900 | 186 | 461,731 | 508,714 | |||||||||||||
| Commissions expense | (18,924 | ) | (47 | ) | (39,485 | ) | (58,456 | ) | |||||||||||
| Other operating income | 101,102 | 50 | 1,638,413 | 70 | 1,739,635 | ||||||||||||||
| Administrative expense | (1,050,284 | ) | (1,050,284 | ) | |||||||||||||||
| Other operating<br> expense | (67,893 | ) | (67,893 | ) | |||||||||||||||
| Total<br> income / (loss) | 149,043 | 50 | 1,620,622 | (30,816 | ) | 308,421 | 759,377 | 2,806,697 | |||||||||||
| (1) | These transactions are eliminated during<br> the consolidation process. | ||||||||||||||||||
| --- | --- | ||||||||||||||||||
| (2) | It includes the balance amounts from its<br> subsidiary Macro Fondos SGFCISA. | ||||||||||||||||||
| (3) | Includes close family members of the key<br> management personnel. |
Transactions generated by the Bank with its related parties for arranged transactions within the course of the usual and ordinary course of business were performed in normal market conditions, both as to interest rates and prices and as to the required guarantees.
The Bank does not have loans granted to directors and other key management personnel secured with shares.
Total remunerations received as salary and bonus by the key management personnel as of March 31, 2024 and December 31, 2023 amounted to 1,104,118 and 1,078,936, respectively.
In addition, fees received by the Directors as of March 31, 2024 and 2023 amounted to 2,113,971 and 3,895,643, respectively.
Additionally, the composition of the Board of Directors and key management personnel of the Bank and its subsidiaries is as follows:
| Composition | 03/31/2024 | 12/31/2023 | ||
|---|---|---|---|---|
| Board of Directors | 22 | 22 | ||
| Senior managers of the key management<br> personnel | 12 | 12 | ||
| Total | 34 | 34 | ||
| 15. | DEPOSITS | |||
| --- | --- |
The composition of deposits as of March 31, 2024 and December 31, 2023 is as follows:
| Composition | 03/31/2024 | 12/31/2023 | ||
|---|---|---|---|---|
| Non-financial public sector | 517,845,898 | 283,685,577 | ||
| Financial sector | 13,371,241 | 30,605,533 | ||
| Non-financial private sector and foreign residents | 4,504,543,778 | 4,795,731,504 | ||
| Checking accounts | 541,276,474 | 772,697,706 | ||
| Saving accounts | 1,622,339,022 | 2,168,239,077 | ||
| Time deposits | 2,011,772,012 | 1,589,356,987 | ||
| Investment accounts | 262,273,127 | 189,853,393 | ||
| Other | 66,883,143 | 75,584,341 | ||
| Total | 5,035,760,917 | 5,110,022,614 |
37
NOTES TO THE CONDENSED CONSOLIDATED INTERIMFINANCIAL STATEMENTS
AS OF MARCH 31, 2024
(Translation of Financial Statements originally issued in Spanish – See Note 44)
(Figures stated in thousands of pesos in constant currency)
| 16. | OTHER FINANCIAL LIABILITIES |
|---|
The composition of the other financial liabilities as of March 31, 2024 and December 31, 2023 is as follows:
| Composition | 03/31/2024 | 12/31/2023 | ||
|---|---|---|---|---|
| Credit and debit card settlement - due to merchants | 222,701,854 | 298,424,215 | ||
| Amounts payable for other spot purchases pending settlement | 114,894,734 | 141,690,342 | ||
| Payment orders pending to foreign exchange settlement | 55,216,127 | 52,203,513 | ||
| Collections and other transactions on account and behalf of<br> others | 14,891,206 | 15,851,926 | ||
| Finance leases liabilities | 11,788,994 | 14,235,461 | ||
| Amounts payable for spot purchases of foreign currency pending<br> settlement | 1,798,324 | 2,011,342 | ||
| Amounts payable for spot purchases of government securities<br> pending settlement | 1,177,058 | 470,931 | ||
| Other | 51,782,152 | 42,924,043 | ||
| Total | 474,250,449 | 567,811,773 | ||
| 17. | PROVISIONS | |||
| --- | --- |
This item includes the amounts estimated to face a liability of probable occurrence, which if occurring, would originate a loss for the Bank.
Exhibit J “Changes in provisions” presents the changes in provisions as of March 31, 2024 and December 31, 2023.
The expected terms to settle these obligations are as follows:
| **** | 03/31/2024 | **** | **** | |
|---|---|---|---|---|
| Composition | Within 12 months | Over 12 months | 03/31/2024 | 12/31/2023 |
| For administrative, disciplinary and criminal<br> penalties | 500 | 500 | 758 | |
| Letters of credits, guarantees and other commitments (1) | 2,682,349 | 2,682,349 | 3,195,005 | |
| Commercial claims in progress (2) | 1,834,283 | 1,329,188 | 3,163,471 | 4,276,635 |
| Labor lawsuits | 907,503 | 200,320 | 1,107,823 | 960,455 |
| Pension funds - reimbursement | 801,772 | 510,165 | 1,311,937 | 1,848,779 |
| Other | 1,112,513 | 2,378,385 | 3,490,898 | 2,975,428 |
| Total | 7,338,420 | 4,418,558 | 11,756,978 | 13,257,060 |
| (1) | These amounts correspond to the ECL calculated for contingent transactions,<br> which are mentioned in Note 4. | |||
| --- | --- | |||
| (2) | See also Note 39.2. |
In the opinion of the Bank’s Management and its legal counsel, there are no other significant effects other than those disclosed in these condensed consolidated interim Financial Statements, the amounts and settlement terms of which have been recognized based on the current value of such estimates, considering the probable settlement date thereof.
38
NOTES TO THE CONDENSED CONSOLIDATED INTERIMFINANCIAL STATEMENTS
AS OF MARCH 31, 2024
(Translation of Financial Statements originally issued in Spanish – See Note 44)
(Figures stated in thousands of pesos in constant currency)
| 18. | OTHER NON-FINANCIAL LIABILITIES |
|---|
The composition of other non-financial liabilities as of March 31, 2024 and December 31, 2023 is as follows:
| Composition | 03/31/2024 | 12/31/2023 | ||
|---|---|---|---|---|
| Salaries, bonuses and payroll taxes payables | 70,135,330 | 80,195,150 | ||
| Withholdings | 48,365,618 | 56,175,904 | ||
| Miscellaneous payables | 47,629,342 | 68,444,597 | ||
| Taxes payables | 42,058,349 | 51,198,311 | ||
| Directors’ and syndics’ fees payable | 12,175,386 | 26,524,755 | ||
| Retirement pension payment orders pending settlement | 2,038,708 | 2,408,322 | ||
| Dividends payable (see Note 30) | 146,897 | 121,513 | ||
| Other | 26,528,943 | 39,683,151 | ||
| Total | 249,078,573 | 324,751,703 | ||
| 19. | ANALYSIS OF FINANCIAL ASSETS TO BE RECOVERED AND FINANCIAL LIABILITIES TO BE SETTLED | |||
| --- | --- |
The following tables show the analysis of financial assets and liabilities the Bank expects to recover and settle as of March 31, 2024 and December 31, 2023:
| 03/31/2024 | Without<br> due <br><br> date | Total up<br> to 12<br><br> months | Total over<br> 12<br><br> months | |||
|---|---|---|---|---|---|---|
| Assets | ||||||
| Cash and deposits in banks | 1,149,471,536 | |||||
| Debt securities at fair value through profit or loss | 32,697,803 | 4,300,297,009 | ||||
| Derivative financial instruments | 57,581,453 | |||||
| Repo transactions | 279,193,344 | |||||
| Other financial assets | 71,739,595 | 100,945,225 | 55,546,034 | |||
| Loans and other financing (1) | 7,071,770 | 1,966,464,011 | 527,048,873 | |||
| Other debt securities | 382,468,389 | 104,963,828 | ||||
| Financial assets delivered as guarantee | 141,951,555 | 28,242,998 | ||||
| Equity instruments at fair value through<br> profit or loss | 3,318,120 | |||||
| Total assets | 1,373,552,576 | 2,847,593,223 | 4,987,855,744 | |||
| Liabilities | ||||||
| Deposits | 2,019,464,346 | 3,014,688,017 | 1,608,554 | |||
| Financial liabilities at fair value through profit or loss | 19,867,094 | |||||
| Derivative financial instruments | 5,950,433 | |||||
| Repo transactions | 20,856,886 | |||||
| Other financial liabilities | 465,202,418 | 9,048,031 | ||||
| Financing received from the BCRA and other financial institutions | 12,778,435 | 6,964,952 | ||||
| Issued corporate bonds | 57,905,245 | 9,273,688 | ||||
| Subordinated corporate bonds | 11,539,135 | 342,023,522 | ||||
| Total liabilities | 2,019,464,346 | 3,608,787,663 | 368,918,747 | |||
| (1) | The amounts included in “without due date” are related<br> to the non-performing portfolio. | |||||
| --- | --- |
39
NOTES TO THE CONDENSED CONSOLIDATED INTERIMFINANCIAL STATEMENTS
AS OF MARCH 31, 2024
(Translation of Financial Statements originally issued in Spanish – See Note 44)
(Figures stated in thousands of pesos in constant currency)
| 12/31/2023 | Without<br> due<br><br> date | Total up<br> to 12<br><br> months | Total over<br> 12<br><br> months | |||
|---|---|---|---|---|---|---|
| Assets | ||||||
| Cash and deposits in banks | 1,824,170,723 | |||||
| Debt securities at fair value through profit or loss | 2,576,273,837 | 80,314,333 | ||||
| Derivative financial instruments | 19,928,075 | |||||
| Repo transactions | 933,357,661 | |||||
| Other financial assets | 79,932,423 | 141,673,926 | 83,731,924 | |||
| Loans and other financing (1) | 11,893,971 | 2,221,253,876 | 547,080,449 | |||
| Other debt securities | 220,089,069 | 434,604,121 | ||||
| Financial assets delivered as guarantee | 155,328,077 | 46,165,681 | ||||
| Equity instruments at fair value through<br> profit or loss | 4,872,886 | |||||
| Total assets | 2,076,198,080 | 6,158,742,125 | 1,145,730,827 | |||
| Liabilities | ||||||
| Deposits | 2,545,614,077 | 2,564,112,925 | 295,612 | |||
| Financial liabilities at fair value through profit or loss | 20,962,446 | |||||
| Derivative financial instruments | 4,302,846 | |||||
| Repo transactions | 35,784,780 | |||||
| Other financial liabilities | 555,659,523 | 12,152,250 | ||||
| Financing received from the BCRA and other financial institutions | 20,103,660 | 9,915,975 | ||||
| Issued corporate bonds | 80,962,927 | 8,287,803 | ||||
| Subordinated corporate bonds | 8,678,541 | 488,986,652 | ||||
| Total liabilities | 2,545,614,077 | 3,290,567,648 | 519,638,292 | |||
| (1) | The amounts included in “without due date” are related<br> to the non-performing portfolio. | |||||
| --- | --- | |||||
| 20. | DISCLOSURES BY OPERATING SEGMENT | |||||
| --- | --- |
For management purposes, the Bank’s Management has determined that it has only one operating segment related to the banking business. In this sense, the Bank supervises the operating segment income (loss) for the fiscal year in order to make decisions about resources to be allocated to the segment and assess its performance, which is measured on a consistent basis with the profit or loss in the Financial Statements.
| 21. | INCOME TAX |
|---|---|
| a) | Inflation adjustment on income tax |
| --- | --- |
Tax Reform Law 27430, amended by Laws 27468 and 27541, established the following, regarding inflation adjustment on income tax for the fiscal years beginning on January 1, 2018:
| i) | such adjustment will be applicable in<br> the fiscal year in which the variation of the CPI is higher than 100% for the thirty-six<br> months before the end of the tax period; |
|---|---|
| ii) | regarding the first, second and third<br> fiscal year after its effective date, this procedure will be applicable if the variation<br> of the abovementioned index, calculated from the beginning until the end of each of those<br> fiscal years exceeds 55%, 30% and 15% for the first, second and third fiscal years of application,<br> respectively; |
| --- | --- |
| iii) | the positive or negative inflation adjustment,<br> as the case may be, corresponding to the first, second and third fiscal years beginning on<br> January 1, 2018, shall be allocated one third in the fiscal year for which the adjustment<br> is calculated and the remaining two thirds in equal parts in the following two immediate<br> fiscal years; |
| --- | --- |
40
NOTES TO THE CONDENSED CONSOLIDATED INTERIMFINANCIAL STATEMENTS
AS OF MARCH 31, 2024
(Translation of Financial Statements originally issued in Spanish – See Note 44)
(Figures stated in thousands of pesos in constant currency)
| iv) | the positive or negative inflation adjustment,<br> corresponding to the first and second fiscal years beginning on January 1, 2019, shall<br> be allocated one sixth to the fiscal year in which the adjustment is determined and the remaining<br> five sixth in the following immediate fiscal years; and |
|---|---|
| v) | for fiscal years beginning on January 1,<br> 2021, 100% of the adjustment may be deducted in the year in which it is determined. |
| --- | --- |
As of March 31, 2024 and December 31, 2023, all the conditions established by the income tax Law to practice the inflation adjustment are met (see section “Fiscal years 2019 and 2020” and “Fiscal year 2021” of this note).
| b) | Income tax rate |
|---|
On June 16, 2021, through Decree No. 387/2021, Law No. 27630 was issued. This law established for fiscal years beginning on or after January 1, 2021, a progressive tax rates scheme of 25%, 30% and 35% which will be applied, on a progressive basis, to the taxable accumulated net profit at the end of each fiscal year.
| c) | The main items of income tax expense in<br> the condensed consolidated interim Financial Statements are as follows: | |||||
|---|---|---|---|---|---|---|
| Composition | 03/31/2024 | 03/31/2023 | ||||
| --- | --- | --- | --- | --- | --- | --- |
| Current income tax expense | 98,694,744 | 20,089,332 | ||||
| (Income) / loss for deferred income taxes | (9,187,443 | ) | 1,505,650 | |||
| Income tax loss recorded in the statement of income | 89,507,301 | 21,594,982 | ||||
| Income tax profit recorded in other comprehensive<br> income | (1,455,575 | ) | (1,369,299 | ) | ||
| Total | 88,051,726 | 20,225,683 |
Fiscal years 2019 and 2020
As decided by the Board of Directors in the meeting held on May 11, 2020, considering certain case law on the matter assessed by its legal counsel and tax advisors, on May 26 of that year, the Bank filed with the Administración Federal de Ingresos Públicos (AFIP, for its acronym in Spanish) its annual income tax return considering the total effect of the inflation adjustment on income tax (see section a) iv) of this note). As a result, the current income tax determined by Banco Macro SA for fiscal year 2019 amounted to 7,002,124 (not restated). The same criterion was applied to determine the annual income tax report for 2020, which generated accrued income tax for Banco Macro SA for such fiscal year that amounted to 9,933,210 (not restated).
In addition, on July 23, 2021, the Bank filed a reimbursement action with the AFIP requesting that 254,305 (not restated) paid as income tax for the 2020 tax period be reimbursed.
As to the tax periods mentioned in previous paragraphs, on November 1, 2021, the AFIP notified the beginning of an income tax audit, which is in progress.
Along with the filings mentioned in the first paragraph of this section, on December 28, 2021, the Bank filed petitions for declaratory judgment with the Federal Administrative Contentious Court for the periods under analysis. The file 22274/2021, for the fiscal year 2019, is in process in Court No. 12 and the file 22278/2021, for the fiscal year 2020, is in process in Court No. 1.
Fiscal year 2021
On October 17, 2022, Banco Macro SA filed a reimbursement action with the AFIP requesting that 382,189 (not restated) paid as income tax for the 2021 tax period be reimbursed.
On January 3, 2023, the AFIP notified the beginning of an income tax audit related to the abovementioned fiscal year. On April 8, 2024 the AFIP notified the closure of the audit, without tax adjustment as of the date of issuance of these condensed consolidated interim Financial Statements.
Fiscal year 2022
On June 30, 2023, Banco Macro SA filed a reimbursement action with the AFIP requesting that 654,673 (not restated) paid as income tax for the 2022 tax period be reimbursed.
41
NOTES TO THE CONDENSED CONSOLIDATED INTERIMFINANCIAL STATEMENTS
AS OF MARCH 31, 2024
(Translation of Financial Statements originally issued in Spanish – See Note 44)
(Figures stated in thousands of pesos in constant currency)
On 16 November, 2023, the AFIP notified the beginning of an income tax audit related to the abovementioned fiscal year, which is in progress as of the date of issuance of these condensed consolidated interim Financial Statements.
Reimbursement actions – Fiscal years 2013 to 2017 and 2018
On October 24, 2019, Banco Macro SA filed with the AFIP-DGI (Argentine tax authorities) two reimbursement actions under the terms established by the first paragraph of section 81, Law No. 11683 requesting the reimbursement of 4,782,766 and 5,015,451 (not restated amounts) paid to tax authorities as income tax during tax periods 2013 through 2017 and 2018, respectively, arising from the impossibility to apply the adjustment for inflation and other adjustment mechanisms set forth by income tax Law (prior to the amendments introduced by Laws No. 27430 and 27468 for periods 2013 through 2017, and as revised in 2019 and amended for the 2018 tax period), plus the related compensatory interest (SIGEA [case and file management system] files No. 19144-14224/2019 and 19144-14222/2019). Since tax authorities have not yet issued a resolution with respect to the abovementioned claims, on August 7, 2020, the Bank filed both reimbursement requests under the terms of section 81, Law No. 11683 with the Federal Contentious and Administrative Trial Courts, which are pending in Courts No. 8 and 2 of such jurisdiction, respectively (cases No. 11285/2020 and 11296/2020). Currently, in connection with the file for the fiscal year 2018, the evidence stage is closed and the process for allegation was delivered.
In connection with the tax periods mentioned in the previous paragraph, on December 19, 2019, the AFIP notified the beginning of the income tax audit for the 2018 tax period, and on May 3, 2021, it notified the beginning of the income tax audit for periods 2013 through 2017. On October 4, 2021, the AFIP ended the audit for periods 2013 through 2017 as the Bank had exercised in due time its right to resort to justice, and that the admission of reimbursement is subject to a court decision.
| 22. | COMMISSIONS INCOME | ||||
|---|---|---|---|---|---|
| Composition | 03/31/2024 | 03/31/2023 | |||
| --- | --- | --- | --- | --- | --- |
| Performance obligations satisfied<br> at a point in time | |||||
| Commissions related to<br> obligations | 43,327,699 | 53,106,350 | |||
| Commissions related to credit cards | 27,430,943 | 30,927,250 | |||
| Commissions related to insurance | 3,629,499 | 5,078,375 | |||
| Commissions related to securities value | 2,936,020 | 2,231,729 | |||
| Commissions related to trading and<br> foreign exchange transactions | 2,693,201 | 1,990,454 | |||
| Commissions related to loans and other<br> financing | 1,325,421 | 6,982 | |||
| Commissions related to financial guarantees<br> granted | 1,015,224 | 308,998 | |||
| Performance obligations satisfied<br> over certain time period | |||||
| Commissions related to trading and<br> foreign exchange transactions | 1,420,214 | 79,816 | |||
| Commissions related to credit cards | 408,904 | 418,382 | |||
| Commissions related to loans and other<br> financing | 3,461 | 72,612 | |||
| Commissions related to obligations | (72 | ) | 1,799 | ||
| Total | 84,190,514 | 94,222,747 | |||
| 23. | DIFFERENCES IN QUOTED PRICES OF GOLD AND FOREIGN CURRENCY | ||||
| --- | --- | ||||
| Composition | 03/31/2024 | 03/31/2023 | |||
| --- | --- | --- | --- | --- | |
| Translation of foreign currency assets and liabilities<br> into pesos | 80,390,915 | 141,393,140 | |||
| Income from foreign currency exchange | 200,904 | 850,610 | |||
| Total | 80,591,819 | 142,243,750 |
42
NOTES TO THE CONDENSED CONSOLIDATED INTERIMFINANCIAL STATEMENTS
AS OF MARCH 31, 2024
(Translation of Financial Statements originally issued in Spanish – See Note 44)
(Figures stated in thousands of pesos in constant currency)
| 24. | OTHER OPERATING INCOME | |||
|---|---|---|---|---|
| Composition | 03/31/2024 | 03/31/2023 | ||
| --- | --- | --- | --- | --- |
| Services | 19,281,289 | 12,181,609 | ||
| Adjustments and interest from other receivables | 7,443,306 | 3,567,485 | ||
| Adjustments from other receivables with CER clauses | 6,877,251 | 2,128,870 | ||
| Other receivables from financial intermediation | 2,195,359 | 492,065 | ||
| Other | 8,552,990 | 3,800,056 | ||
| Total | 44,350,195 | 22,170,085 | ||
| 25. | EMPLOYEE BENEFITS | |||
| --- | --- | |||
| Composition | 03/31/2024 | 03/31/2023 | ||
| --- | --- | --- | --- | --- |
| Remunerations | 91,400,202 | 61,356,163 | ||
| Payroll taxes | 21,913,205 | 15,605,008 | ||
| Compensations and bonuses to employees | 16,819,789 | 11,012,368 | ||
| Employee services | 3,258,515 | 3,052,012 | ||
| Total | 133,391,711 | 91,025,551 | ||
| 26. | ADMINISTRATIVE EXPENSES | |||
| --- | --- | |||
| Composition | 03/31/2024 | 03/31/2023 | ||
| --- | --- | --- | --- | --- |
| Fees to directors and syndics | 12,035,041 | 1,823,723 | ||
| Taxes | 11,787,861 | 7,672,179 | ||
| Maintenance, conservation and repair expenses | 9,673,332 | 6,995,525 | ||
| Other fees | 5,665,692 | 4,893,638 | ||
| Armored truck, documentation and events | 5,185,989 | 6,301,026 | ||
| Electricity and communications | 5,106,315 | 4,132,328 | ||
| Security services | 4,012,737 | 4,322,143 | ||
| Hired administrative services | 2,871,958 | 323,812 | ||
| Advertising and publicity | 2,782,962 | 1,847,976 | ||
| Software | 2,712,244 | 3,034,459 | ||
| Representation, travel and transportation expenses | 755,353 | 931,280 | ||
| Leases | 433,062 | 177,395 | ||
| Stationery and office supplies | 361,767 | 405,167 | ||
| Insurance | 336,886 | 374,311 | ||
| Other | 5,188,429 | 1,953,616 | ||
| Total | 68,909,628 | 45,188,578 |
43
NOTES TO THE CONDENSED CONSOLIDATED INTERIMFINANCIAL STATEMENTS
AS OF MARCH 31, 2024
(Translation of Financial Statements originally issued in Spanish – See Note 44)
(Figures stated in thousands of pesos in constant currency)
| 27. | OTHER OPERATING EXPENSES | |||
|---|---|---|---|---|
| Composition | 03/31/2024 | 03/31/2023 | ||
| --- | --- | --- | --- | --- |
| Turnover tax | 92,799,848 | 54,278,280 | ||
| From credit cards | 26,649,542 | 19,973,003 | ||
| Charges for other provisions | 3,720,453 | 2,567,636 | ||
| Other adjustments and interests for miscellaneous obligations | 1,715,329 | 1,858,540 | ||
| Deposit guarantee fund contributions | 1,687,111 | 2,351,616 | ||
| Insurance claims | 1,128,220 | 890,209 | ||
| Donations | 529,876 | 800,747 | ||
| Taxes | 32,758 | 179,248 | ||
| Loss from sale or depreciation of property, plant and equipment | 19,466 | |||
| Loss from sale or impairment of investment in properties and<br> other non-financial assets | 174,931 | |||
| Other | 11,301,033 | 9,379,809 | ||
| Total | 139,583,636 | 92,454,019 | ||
| 28. | ADDITIONAL DISCLOSURES IN THE STATEMENT OF CASH FLOWS | |||
| --- | --- |
The Statement of Cash Flows presents the changes in cash and cash equivalents derived from operating activities, investing activities and financing activities during the period. For the preparation of the statement of cash flows the Bank adopted the indirect method for Operating Activities and the direct method for Investment Activities and Financing Activities.
The Bank considers as “Cash and cash equivalents” the item Cash and deposits in banks and those financial assets that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value.
For the preparation of the Statement of Cash Flows the Bank considered the following:
| - | Operating activities: the normal revenue-producing<br> activities of the Bank as well as other activities that cannot qualify as investing or financing<br> activities. |
|---|---|
| - | Investing activities: the acquisition,<br> sale and disposal by other means of long-term assets and other investments not included in<br> cash and cash equivalents. |
| --- | --- |
| - | Financing activities: activities that<br> result in changes in the size and composition of the shareholders’ equity and liabilities<br> of the Bank and that are not part of the operating or investing activities. |
| --- | --- |
The table below presents the reconciliation between the item “Cash and cash equivalents” in the Statement of Cash Flows and the relevant accounting items of the Statement of financial position:
| Description | 03/31/2024 | 12/31/2023 | 03/31/2023 | 12/31/2022 | ||||
|---|---|---|---|---|---|---|---|---|
| Cash and deposits in banks | 1,149,471,536 | 1,824,170,723 | 1,154,331,789 | 1,180,826,064 | ||||
| Debt securities at fair value through profit or loss | 320,846,645 | 202,801,372 | ||||||
| Other debt securities | 40,226,551 | 66,070,185 | 2,547,720,021 | 2,355,866,730 | ||||
| Loans and other financing | 4,287,084 | 6,129,189 | 4,053,008 | 4,181,665 | ||||
| Total | 1,514,831,816 | 2,099,171,469 | 3,706,104,818 | 3,540,874,459 | ||||
| 29. | CAPITAL STOCK | |||||||
| --- | --- |
The Bank’s subscribed and paid-in capital from December 31, 2021 to March 31, 2024, amounted to 639,413. The capital stock composition is detailed in Exhibit K to the condensed separate interim Financial Statements.
44
NOTES TO THE CONDENSED CONSOLIDATED INTERIMFINANCIAL STATEMENTS
AS OF MARCH 31, 2024
(Translation of Financial Statements originally issued in Spanish – See Note 44)
(Figures stated in thousands of pesos in constant currency)
| 30. | 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.
In calculating the weighted average of outstanding common shares, the number of shares at the beginning of the year is adjusted, if applicable, by the number of common shares issued or withdrawn during the period, weighted by the number of days those shares have been outstanding. Note 29 provides a breakdown of the changes in the Bank's capital stock.
The calculation of basic earnings per share is provided in the “Earnings per share” table of the condensed consolidated interim income Statement. See also Note 40.
Dividends paid and proposed
The Shareholders’ Meeting held on April 29, 2022, resolved to distribute cash dividends and/or dividends in kind, in this last case, measured at market value for an amount of 14,187,873 (not restated), representing 22.18 pesos per share, subject to prior authorization from the BCRA which, added to the dividends still to be paid because they exceeded the abovementioned limit, amounted to 21,016,844 (not restated) and were recorded in a “Reserve for dividends pending authorization from the BCRA”. Through Communiqué “A” 7719 issued on March 9, 2023, the BCRA established that from April 1, 2023 up to December 31, 2023, financial institutions which have the BCRA’s authorization, will be allowed to distribute up to 40% of the amount of earnings that should have been distributed if the “Earnings distribution” rules had been applied, in six equal, monthly and consecutive installments.
The Shareholders’ Meeting held on April 25, 2023, decided to distribute cash dividends and/or dividends in kind, in this last case, measured at market value for an amount of 75,040,918 (not restated), representing 117.36 pesos per share, subject to prior authorization from the BCRA. On May 12, 2023 the BCRA authorized the dividends distribution, which were paid during the fiscal year ended December 31, 2023 according to the installment schedule.
On September 29, 2023, Macro Agro SAU (formerly known as Comercio Interior SAU) distributed cash dividends for an amount of 440,000 (not restated).
Through Communiqué “A” 7984 issued on March 21, 2024 the BCRA established that up to December 31, 2024, financial institutions which have the BCRA’s authorization will be allowed to distribute up to 60% of the amount of earnings that should have been distributed if the “Earnings distributions” rules had been applied, in six equal, monthly and consecutive installments. The amount of each dividend installment will be paid in homogeneous currency on each payment date.
The Shareholders’ Meeting held on April 12, 2024, approved to distribute cash dividends and/or dividends in kind, in this case measured at market value, for an amount of 401,735,819,252, representing 628.29 pesos per share, subject to prior BCRA authorization. On May 6, 2024, the BCRA authorized this earnings distribution.
On the other hand, according to Communiqué “A” 7997 issued on April 30, 2024, the BCRA established that financial institutions which have the BCRA’s authorization will be allowed to distribute earnings in three equal, monthly and consecutive installments. Additionally, financial institutions must grant the option to each non-resident shareholder to receive their dividends –totally or partially– in a single cash installment as long as those funds are applied directly to the primary subscription of Bonds for the reconstruction of a free Argentina (BOPREAL, for its acronym in Spanish) in accordance with current exchange regulations.
| 31. | DEPOSIT GUARANTEE INSURANCE |
|---|
Law No. 24485 and Decree No. 540/1995 created the Deposit Guarantee Insurance System, which was featured as a limited, compulsory and onerous system, aimed at covering the risks of bank deposits, as subsidiary and supplementary to the deposit privilege and protection system established under the Financial Entities Law. The abovementioned legislation also provided for the incorporation of Sedesa with the exclusive purpose of managing the Deposit Guarantee Fund (DGF). Sedesa was incorporated in August 1995.
45
NOTES TO THE CONDENSED CONSOLIDATED INTERIMFINANCIAL STATEMENTS
AS OF MARCH 31, 2024
(Translation of Financial Statements originally issued in Spanish – See Note 44)
(Figures stated in thousands of pesos in constant currency)
Bank’s interest in the capital stock of Sedesa according to the percentages disclosed by BCRA Communiqué “B” 12755 on March 4, 2024 is as follows:
| Banco Macro SA | 7.6285 | % |
|---|---|---|
| Banco BMA SAU | 1.6414 | % |
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 up to the amount of 6,000 which must meet the requirements provided for in Presidential Decree No. 540/1995 and other requirements that the regulatory authority may determine from time to time. Additionally, through Communiqué “A” 7985 issued on March 27, 2024, the BCRA resolved that, from April 1, 2024, the coverage will be up to 25,000.
On the other hand, the BCRA provided from the exclusion of the guarantee system, among others, of any deposits made by other financial entities, deposits made by persons related to the Bank and securities deposits.
| 32. | RESTRICTED ASSETS |
|---|
As of March 31, 2024 and December 31, 2023, the following Bank’s assets are restricted:
| Composition | 03/31/2024 | 12/31/2023 | ||
|---|---|---|---|---|
| Cash and deposits in banks | ||||
| ·<br> Fondo de Riesgo Fintech SGR – Deposits in other entities (1). | 1,369 | 1,594 | ||
| Subtotal cash and deposits in Banks | 1,369 | 1,594 | ||
| Debt securities at fair value through profit or loss and Other debt securities | ||||
| ·<br> Fondo de Riesgo Fintech SGR – Debt securities at fair value through profit or loss (1). | 11,428,460 | 20,011,352 | ||
| · Argentine<br> government Treasury bonds in pesos adjusted by CER 4.25% - Maturity 02/14/2025, as of March 31, 2024 and Argentine government<br> discount bonds in dual currency - Maturity: 02/28/2024 as of December 31, 2023, for the contribution to the Guarantee Fund II<br> in BYMA according to section 45, Law 26831 and supplementary regulations established by CNV standards (NT 2013, as amended). | 3,048,887 | 1,926,975 | ||
| · Discount bonds in pesos regulated by Argentine legislation, maturing in 2033, to guarantee the Credit Program for Production<br> Reactivation of the Province of San Juan. | 1,283,252 | 1,438,287 | ||
| ·<br> Discount bonds in pesos regulated by Argentine legislation, maturing in 2033 for the minimum statutory guarantee account required<br> for Agents to act in the new categories contemplated under Resolution No. 622/2013, as amended, of the Argentine Securities<br> Commission (CNV). | 370,425 | 415,177 | ||
| · Argentine<br> government Treasury bonds in pesos adjusted by CER 2% – Maturity: 11/09/2026, to guarantee the Credit Program for Production<br> Reactivation of the Province of San Juan. | 347,455 | 359,271 | ||
| ·<br> Discount bonds in pesos regulated by Argentine legislation, maturing in 2033, affected by guarantee the sectoral Credit Program of<br> the Province of San Juan, production investment financing fund. | 211,613 | 216,277 | ||
| ·<br> Discount bonds in pesos regulated by Argentine legislation, maturing in 2033, as of December 31, 2023 affected by the guarantee<br> of the Regional Economies Competitiveness Program - IDB Loan No. 3174/OC-AR. | 22,812 | |||
| · Other. | 467,311 | 607,167 | ||
| Subtotal Debt securities at fair value through profit or loss and Other debt securities | 17,157,403 | 24,997,318 |
46
NOTES TO THE CONDENSED CONSOLIDATED INTERIMFINANCIAL STATEMENTS
AS OF MARCH 31, 2024
(Translation of Financial Statements originally issued in Spanish – See Note 44)
(Figures stated in thousands of pesos in constant currency)
| Composition (contd.) | 03/31/2024 | 12/31/2023 | |||
|---|---|---|---|---|---|
| Other financial assets | |||||
| · | Interests derived from contributions made as protector partner<br>(2). | 8,171,284 | 12,389,455 | ||
| · | Fondo de Riesgo Fintech SGR – Mutual fund shares (1). | 2,955,346 | 2,681,723 | ||
| · | Financial instruments for minimum statutory guarantee account<br>required for Agents to act in the new categories contemplated under Resolution No. 622/2013, as amended, of the CNV. | 598,225 | 513,511 | ||
| · | Sundry debtors – other. | 947,902 | 433,423 | ||
| · | Sundry debtors – attachment within the scope of the claim<br>filed by the DGR against the CABA for turnover tax differences. | 827 | 1,254 | ||
| Subtotal Other financial assets | 12,673,584 | 16,019,366 | |||
| Loans and other financing | |||||
| --- | --- | --- | --- | ||
| · | Fondo de Riesgo Fintech<br>SGR – Loans and other financing (1). | 939,427 | 288,391 | ||
| Subtotal Loans and other financing | 939,427 | 288,391 | |||
| Financial assets delivered as a guarantee | |||||
| --- | --- | --- | --- | ||
| · | Special guarantee checking accounts opened in the BCRA for<br>transactions related to the electronic clearing houses and similar entities. | 99,616,384 | 103,281,114 | ||
| · | For securities forward contracts. | 28,242,998 | 46,165,681 | ||
| · | Guarantee deposits related to credit and debit card transactions. | 13,549,308 | 10,245,824 | ||
| · | Other guarantee deposits. | 28,785,863 | 41,801,139 | ||
| Subtotal Financial assets delivered as guarantee | 170,194,553 | 201,493,758 | |||
| Other non-financial assets | |||||
| · | Real property related to a call option sold. | 11,281,001 | 11,280,992 | ||
| · | Fondo de Riesgo Fintech SGR – Other non-financial assets<br>(1). | 15,053 | 16,719 | ||
| Subtotal Other non-financial assets | 11,296,054 | 11,297,711 | |||
| Total | 212,262,390 | 254,098,138 | |||
| (1) | According to Law 24467, as amended,<br> and Fintech SGR by-laws, this entity has a risk fund (“Fondo de Riesgo”) which<br> its main objective is to cover the guarantees granted to the protector partners and third<br> parties. The assets of the risk fund could only be applied to partners’ withdrawals,<br> to cover guarantees and other direct expenses. | ||||
| --- | --- | ||||
| (2) | As of March 31, 2024 and December 31,<br> 2024 it is related to the risk fund Fintech SGR, Alianza SGR and Innova SGR. In order to<br> keep tax benefits related to these contributions, they must be maintained between two and<br> three years from the date they were made. | ||||
| --- | --- | ||||
| 33. | 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:
| 33.1 | Financial trusts for investment purposes |
|---|
The portfolio of financial trusts for investment purposes is completed with definitive trust securities of financial trusts in public and private offering (Confibono, Secubono, Supercanal, Payway cobro anticipado, Solidario de Infraestructura Nasa IV, Moni Mobile and Red Surcos) and certificates of participation (Arfintech).
As of March 31, 2024 and December 31, 2023, debt securities and certificates of participation in financial trusts for investment purposes, amounted to 1,412,085 and 1,330,061, respectively.
According to the latest accounting information available as of the date of issuance of these condensed consolidated interim Financial Statements, the corpus assets of the trusts exceed the carrying amount in the related proportions.
47
NOTES TO THE CONDENSED CONSOLIDATED INTERIMFINANCIAL STATEMENTS
AS OF MARCH 31, 2024
(Translation of Financial Statements originally issued in Spanish – See Note 44)
(Figures stated in thousands of pesos in constant currency)
| 33.2 | Trusts created using financial assets transferred by the Bank (securitization) |
|---|
The Bank transferred financial assets (loans) to trusts for the purpose of issuing and selling securities whose collection is guaranteed by the cash flow resulting from such assets or group of assets. Through this way the funds that were originally used by the Bank to finance the loans are obtained earlier.
As of March 31, 2024 and December 31, 2023, considering the latest available accounting information as of the date of issuance of these condensed consolidated interim Financial Statements, the assets managed through Macro Fiducia SAU (subsidiary) of this type of trusts amounted to 2,636 and 3,997, respectively.
| 33.3 | Trusts guaranteeing loans granted by the Bank |
|---|
As it is common in the Argentine banking market, the Bank requires, in some cases, that the debtors present certain assets or entitlements to receive assets in a trust as a guarantee for the loans granted. This way, the risk of losses is minimized and access to the security is guaranteed in case of the debtor's non-compliance.
Trusts usually act as conduits to collect cash from the debtor’s flow of operations and send such cash to the Bank for the payment of the debtor’s loans and thus ensure compliance with the obligations assumed by the trustor and guaranteed through the trust.
Additionally, other guarantee trusts manage specific assets, mainly real property.
Provided there is no non-compliance or delays by the debtor in the obligations assumed with the beneficiary, the trustee shall not execute the guarantee and all excess amounts as to the value of the obligations are reimbursed by the trustee to the debtor.
As of March 31, 2024 and December 31, 2023, considering the latest available accounting information as of the date of issuance of these condensed consolidated interim Financial Statements, the assets managed by Banco Macro SA and Macro Fiducia SAU, amounted to 7,284,857 and 1,215,977, respectively.
| 33.4 | Trusts in which the Bank acts as Trustee (Management) |
|---|
The Bank, through its subsidiaries, performs management duties of the corpus assets directly according to the agreements, performing only trustee duties and has no other interests in the trust.
In no case shall the trustee be liable with its own assets or for any obligation deriving from the performance as trustee. Such obligations do not imply any type of indebtedness or commitment for the trustee and they will be fulfilled only through trust assets. In addition, the trustee will not encumber the corpus assets or dispose of them beyond the limits established in the related trust agreements. The fees earned by the Bank from its role as trustee are calculated according to the terms and conditions of the agreements.
Trusts usually manage funds derived from the activities performed by trustors, for the following main purposes:
| - | guaranteeing, in favor of the beneficiary<br> the existence of the resources required to finance and/or pay certain obligations, such as<br> the payment of amortization installments regarding work or service certificates, and the<br> payment of invoices and fees stipulated in the related agreements, |
|---|---|
| - | promoting the production development of the<br> private economic sector at a provincial level, |
| --- | --- |
| - | being a party to public work concession agreements<br> granting road exploitation, management, keeping and maintenance. |
| --- | --- |
As of March 31, 2024 and December 31, 2023, considering the latest available accounting information as of the date of issuance of these condensed consolidated interim Financial Statements, the assets managed by the Bank amounted to 57,303,603 and 55,839,426, respectively.
48
NOTES TO THE CONDENSED CONSOLIDATED INTERIMFINANCIAL STATEMENTS
AS OF MARCH 31, 2024
(Translation of Financial Statements originally issued in Spanish – See Note 44)
(Figures stated in thousands of pesos in constant currency)
| 34. | COMPLIANCE WITH CNV REGULATIONS |
|---|---|
| 34.1 | Compliance with CNV standards to act<br> in the different agent categories defined by the CNV: |
| --- | --- |
| 34.1.1 | Operations of Banco Macro SA |
| --- | --- |
Considering Banco Macro SA’s current operations, and according to the different categories of agents established by CNV rules (as per General Resolution No. 622/2013, as amended), the Bank is registered with this agency as Agent for the Custody of Collective Investment Products of Mutual Funds (AC PIC FCI, for their acronyms in Spanish) – Comprehensive Depositary company, clearing and settlement agent and trading agent (ALyC and AN – comprehensive, for their acronyms in Spanish) and is registered in the “List of Authorized companies to guarantee capital market instruments”.
Additionally, the Bank’s shareholders’ equity as of March 31, 2024 stated in UVAs amounted to 4,274,409,657 and exceeds the minimum amount required by such regulation for the different categories of agents in which the Bank is registered, amounting to 470,350 UVAs as of that date, and the minimum required statutory guarantee account of 235,175 UVAs, which the Bank paid-in with government securities as described in Note 32 and the cash deposits in BCRA accounts 000285 and 80285 belonging to the Bank.
| 34.1.2 | Operations of Macro Securities SAU |
|---|
Considering the current operations of this subsidiary, and according to the provisions established by CNV effective as of the approval of General Resolution No. 622/2013, as amended, issued by such agency, such company is registered under the following categories: clearing and settlement agent, trading agent, comprehensive trading agent and mutual investment funds placement and distribution agent and comprehensive mutual investment funds placement and distribution agent (ALyC, AN – comprehensive, ACyD FCI and ACyDI FCI).
Additionally, the shareholders’ equity of such company as of March 31, 2024 stated in UVAs amounted to 120,340,957 and exceeds the minimum amount required by such regulation, amounting to 470,350 UVAs and the minimum statutory guarantee account required a minimum of 50% of the minimum amount of shareholders’ equity, which the company paid-in with mutual fund shares. Moreover, as result of the company acting as “ACyD FCI and ACyDI FCI” an amount of 163,500 UVAs will be added to minimum shareholder’s equity.
| 34.1.3 | Operations of Macro Fondos Sociedad<br> Gerente de Fondos Comunes de Inversión SA |
|---|
Considering the current operations of this subsidiary, and according to the provisions established by CNV effective as of the approval of General Resolution No. 622/2013, as amended, issued by such agency, such company is registered as agent for the Administration of Collective Investment Products of Mutual Funds.
Additionally, the shareholders’ equity of this company as of March 31, 2024 stated in UVAs amounted to 20,742,396 and exceeds the minimum amount required by such regulation, amounting to 150,000 UVAs plus 20,000 UVAs per each additional mutual fund it manages. The minimum statutory guarantee account required a minimum of 50% of the minimum amount of shareholders’ equity, which the company paid-in with mutual fund shares.
| 34.1.4 | Operations of Macro Fiducia SAU |
|---|
Considering the current operations of this subsidiary and according to the provisions established by CNV effective as of the approval of General Resolution No. 622/2013, as amended, issued by such agency, such company is registered as Financial Trustee Agent and Non-Financial Trustee Agent.
Additionally, the shareholders’ equity of such company as of March 31, 2024 stated in UVAs amounted to 902,059 and is lower than the minimum amount required by such regulation established in 950,000 UVAs. This condition is corrected by the company on May 9, 2024, as receiving an irrevocable contribution from Banco Macro SA for an amount of 250,000.
49
NOTES TO THE CONDENSED CONSOLIDATED INTERIMFINANCIAL STATEMENTS
AS OF MARCH 31, 2024
(Translation of Financial Statements originally issued in Spanish – See Note 44)
(Figures stated in thousands of pesos in constant currency)
| 34.1.5 | Operations of Macro Agro SAU (formerly<br> known as Comercio Interior SAU) |
|---|
Considering the current operations of this subsidiary and according to the provisions established by CNV effective as of the approval of General Resolution No. 622/2013, as amended, issued by such agency, this company is registered as Clearing and Settlement Agent – Agroindustrial (ALyC I AGRO, for its acronym in Spanish).
Additionally, the shareholders’ equity of such company as of March 31, 2024 stated in UVAs amounted to 1,692,696 and exceeds the minimum amount required by such General Resolution established in 1,175,000 UVAs. The minimum statutory guarantee account required a minimum of 40% of the minimum amount of shareholders’ equity.
| 34.1.6 | Operations of Banco BMA SAU (formerly<br> known as Banco Itaú Argentina SA) |
|---|
Considering the current operations of Banco BMA SAU and according to the provisions established by CNV effective as of the approval of General Resolution No. 622/2013, as amended, this company is registered as Comprehensive Settlement and Clearing Agent and Trading Agent (ALyC and AN – Integral, as its acronym in Spanish) and as Agent for the Custody of Collective Investment Products of Mutual Funds (AC PIC FCI, for its acronym in Spanish).
Additionally, the shareholders’ equity of such company as of March 31, 2024 stated in UVAs amounted to 406,746,112 and exceeds the minimum amount required by such General Resolution established in 470,350 UVAs, and is integrated with cash balances and equivalents belonging to Banco BMA SAU.
On the other hand, the shareholders’ equity of BMA Asset Management SA (formerly known as Itaú Asset Management SA) as of March 31, 2024 stated in UVAs amounted to 13,208,462 and exceeds the minimum amount required to act as Agent for the Administration of Collective Investment Products of Mutual Funds, amounting to 150,000 UVAs plus 20,000 UVAs per each additional mutual fund it manages. The minimum statutory guarantee account required a minimum of 50% of the minimum amount of shareholders’ equity, which the company paid-in with mutual fund shares.
Similarly, the shareholders’ equity of BMA Valores SA (formerly known as Itaú Valores SA) as of December 31, 2023 stated in UVAs amounted to 5,678,211 and exceeds the minimum shareholders’ equity required, established in 470,350 UVAs, to act as Comprehensive Clearing and Settlement Agent (ALyC Integral, for its acronym in Spanish) and 163,500 UVAs to act as Comprehensive Mutual Investment Funds Placement and Distribution Agent, also integrated into mutual funds.
| 34.2 | 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. In compliance with CNV General Resolution No. 629 requirements, the Bank has placed (i) the Inventory Books for fiscal years ended up to and including December 31, 2017, and (ii) certain documentation supporting the economic transactions for fiscal years ended up to and including December 31, 2017, under the custody of the following companies: AdeA Administradora de Archivos SA (warehouse located at Ruta 36, km 31.5, Florencio Varela, Province of Buenos Aires) and ADDOC Administración de Documentos SA (warehouse located at Avenida Circunvalación Agustín Tosco with no number, Colectora Sur, between Puente San Carlos and Puente 60 blocks, Province of Córdoba and Avenida Luis Lagomarsino 1750, formerly Ruta 8 Km 51,200, Pilar, Province of Buenos Aires).
In addition, the documentary support in digital format is stored in CD rom, DVD rom and the Bank’s own servers.
On the other hand, Banco BMA SAU safeguards the documentary support of its aged accounting and management operations, as established by CNV General Resolution No. 629, in its facilities at Victoria Ocampo No. 360, 7th floor. Additionally, ADDOC Administración de documentos SA is entrusted with the deposit of documentation not included in article 5, paragraph a.3) Section I, Chapter V, Title II of the standards (NT 2013, as amended), as well as aged documentation, which is placed in its Plant 3 warehouses, located at Ruta 36, km 31,500, Bosques, Florencio Varela, Province of Buenos Aires.
50
NOTES TO THE CONDENSED CONSOLIDATED INTERIMFINANCIAL STATEMENTS
AS OF MARCH 31, 2024
(Translation of Financial Statements originally issued in Spanish – See Note 44)
(Figures stated in thousands of pesos in constant currency)
| 34.3 | As depositary of mutual funds | |||
|---|---|---|---|---|
| 34.3.1 | As of March 31, 2024 Banco Macro<br> SA, in its capacity as depositary company, holds in custody the shares in mutual funds subscribed<br> by third parties and assets from the following mutual funds: | |||
| --- | --- | |||
| Funds | Number of shares | Equity | ||
| --- | --- | --- | --- | --- |
| Argenfunds Abierto Pymes | 3,216,820,380 | 40,472,474 | ||
| Argenfunds Ahorro Pesos | 176,041,316 | 12,616,171 | ||
| Argenfunds Financiamiento Pesos | 100,000 | 100 | ||
| Argenfunds Gestión Pesos | 15,976,445,349 | 18,078,857 | ||
| Argenfunds Infraestructura | 1,514,910 | 56 | ||
| Argenfunds Inversión Dólares | 1,000 | 857 | ||
| Argenfunds Inversión Pesos | 3,111,833,380 | 9,040,613 | ||
| Argenfunds Liquidez | 9,610,665,874 | 90,298,304 | ||
| Argenfunds Renta Argentina | 306,460,401 | 25,668,243 | ||
| Argenfunds Renta Balanceada | 519,494,284 | 26,770,770 | ||
| Argenfunds Renta Capital | 14,163,108 | 12,604,811 | ||
| Argenfunds Renta Crecimiento | 3,321,012 | 2,791,795 | ||
| Argenfunds Renta Dinámica | 87,902,584,422 | 21,520,645 | ||
| Argenfunds Renta Fija | 570,381,691 | 69,082,154 | ||
| Argenfunds Renta Flexible | 46,040,329 | 885,023 | ||
| Argenfunds Renta Global | 168,355,964 | 4,571,980 | ||
| Argenfunds Renta Mixta | 34,142,553 | 412,151 | ||
| Argenfunds Renta Mixta Plus | 1,352,780 | 1,091,083 | ||
| Argenfunds Renta Pesos | 96,499,608 | 8,160,156 | ||
| Argenfunds Renta Total | 548,961,979 | 2,802,558 | ||
| Argenfunds Renta Variable | 1,381,493,340 | 516,552 | ||
| Argenfunds Retorno Absoluto | 218,382,470 | 3,278,363 | ||
| Pionero Acciones | 28,130,217 | 19,812,820 | ||
| Pionero Ahorro Dólares | 28,115,066 | 24,604,433 | ||
| Pionero Argentina Bicentenario | 424,876,097 | 12,502,579 | ||
| Pionero Capital | 841,206,069 | 7,685,837 | ||
| Pionero Crecimiento | 1,686,724,286 | 8,518,827 | ||
| Pionero Desarrollo | 53,964,108 | 252,293 | ||
| Pionero Empresas FCI Abierto Pymes | 404,167,141 | 14,401,519 | ||
| Pionero FF | 97,898,261 | 10,540,221 | ||
| Pionero Gestión | 2,252,548,269 | 36,221,189 | ||
| Pionero Infraestructura | 2,216,424,751 | 7,430,630 | ||
| Pionero Patrimonio I | 100,000 | 100 | ||
| Pionero Pesos | 2,758,340,107 | 139,367,793 | ||
| Pionero Pesos Plus | 32,697,705,814 | 989,944,778 | ||
| Pionero Recovery | 1,621,035,111 | 1,805,210 | ||
| Pionero Renta | 50,473,973 | 36,704,390 | ||
| Pionero Renta Ahorro | 409,624,885 | 53,810,880 | ||
| Pionero Renta Ahorro Plus | 1,207,984,965 | 37,892,610 | ||
| Pionero Renta Balanceado | 8,208,692,460 | 47,805,368 | ||
| Pionero Renta Estratégico | 654,972,301 | 21,675,961 | ||
| Pionero Renta Fija Dólares | 11,558,571 | 11,943,483 | ||
| Pionero Renta Mixta I | 186,732,227 | 13,246,396 | ||
| Pionero Retorno | 1,724,324,621 | 9,934,572 |
51
NOTES TO THE CONDENSED CONSOLIDATED INTERIMFINANCIAL STATEMENTS
AS OF MARCH 31, 2024
(Translation of Financial Statements originally issued in Spanish – See Note 44)
(Figures stated in thousands of pesos in constant currency)
| 34.3.2 | As of March 31, 2024 Banco BMA<br> SAU, in its capacity as depositary company, holds in custody the shares in mutual funds subscribed<br> by third parties and assets from the following mutual funds: | |||
|---|---|---|---|---|
| Funds | Number of shares | Equity | ||
| --- | --- | --- | --- | --- |
| Goal Acciones Argentinas | 17,819 | 2,748,402 | ||
| Goal Renta Crecimiento | 24,813,562 | 22,130,237 | ||
| Goal Acciones Plus | 5,512,796 | 746,318 | ||
| Goal Capital Plus | 24,014,844 | 1,008,239 | ||
| Goal Ahorro Max | 129,345,074 | 6,873,916 | ||
| Goal Multiestrategia | 110,000 | 167 | ||
| Goal Multiestrategia Plus | 110,000 | 167 | ||
| Goal Perfomance | 65,332,675 | 5,148,291 | ||
| Goal Perfomance II | 247,952 | 7,654 | ||
| Goal Perfomance III | 252,458,706 | 9,449,905 | ||
| Goal Pesos | 2,435,585,136 | 290,941,726 | ||
| Goal Premium | 10,600,096 | 27,808 | ||
| Goal Renta Dólares | 6,213,364 | 5,995,259 | ||
| Goal Renta Dólares Estrategia | 7,796,237 | 7,705,345 | ||
| Goal Renta Dólares Plus | 2,139,597 | 2,172,888 | ||
| Goal Renta Global | 186,706,062 | 21,457,354 | ||
| Goal Retorno Total | 17,314,689 | 887,915 | ||
| Goal Renta Pesos | 23,693,138 | 1,851,039 | ||
| 35. | ACCOUNTING ITEMS THAT IDENTIFY THE COMPLIANCE WITH MINIMUM CASH REQUIREMENTS | |||
| --- | --- |
The items recognized by the Bank to constitute the minimum cash requirement effective for March 2024 are listed below, indicating the amounts as of month-end of the related items:
| Items | Banco Macro SA | Banco BMA SAU | ||
|---|---|---|---|---|
| Cash and deposits in banks | ||||
| Amounts in BCRA accounts | 274,295,727 | 177,031,592 | ||
| Other debt securities | ||||
| Government securities computable for the minimum cash requirements | 585,079,725 | |||
| Financial assets delivered as guarantee | ||||
| Special guarantee accounts with the BCRA | 78,037,888 | 21,578,496 | ||
| Total | 937,413,340 | 198,610,088 | ||
| 36. | PENALTIES APPLIED TO THE BANK AND SUMMARY PROCEEDINGS INITIATED BY THE BCRA | |||
| --- | --- |
BCRA Communiqué “A” 5689, as supplemented and amended, requires financial institutions to disclose in their Financial Statements certain information regarding summaries and penalties received from certain regulatory authorities, regardless of the amounts involved and the final conclusions of each case.
52
NOTES TO THE CONDENSED CONSOLIDATED INTERIMFINANCIAL STATEMENTS
AS OF MARCH 31, 2024
(Translation of Financial Statements originally issued in Spanish – See Note 44)
(Figures stated in thousands of pesos in constant currency)
| 36.1 | The situation of Banco Macro SA as of<br> March 31, 2024: |
|---|
Summary proceedings filed by the BCRA
Financial summary proceedings: No. 1496 dated 02/24/2016.
Reason: control observations over subsidiaries. Penalty amount: 30,608 (not restated).
Proceeding filed against: Banco Macro SA and 11 members of the Board of Directors.
Status: On 04/07/2016, the Bank filed the defenses and evidence on the BCRA. On 05/18/2016 the Bank requested on behalf of the person who was acting as Vice Chairman of the Bank when these summary proceedings were initiated, the resolution of the motion for lack of standing to be sued. On 09/09/2020, the BCRA filed Resolution No. 132/20 (notified on 02/22/2021) which acquitted Delfín Jorge Ezequiel Carballo and imposed a fine to the Bank and other responsible directors. On 03/01/2021 the Bank paid the fines. On 03/15/2021 the Bank filed a direct appeal against such resolution to the BCRA, which will be decided at Courtroom I of the Federal Civil and Commercial Court of Appeals (CNACAF, for its acronym in Spanish). The fine imposed on the person who was acting as Chairman of the Bank when this summary was initiated, was abrogated due to his passing. On 02/09/2023 the CNACAF issued a sentence, dismissing the direct appeals, with cost. For this reason, the Bank filed a Federal extraordinary appeal, which was granted for the federal law interpretation but rejected on the grounds of alleged arbitrariness. On 04/20/2023, the corresponding petition for denied appeal was filed against the rejection for the alleged arbitrariness, which is under study with the Argentine Supreme Court of Justice (CSJN, for its acronym in Spanish). As of the date of issuance of these condensed consolidated interim Financial Statements, this proceeding is pending resolution.
Criminal foreign exchange summary proceedings: No. 7642 dated 10/18/2021.
Reason: Supposed non-compliance with article 1 sections e) and f) of the Criminal Foreign Exchange Regime (TO by Decree No. 480/95), together with points 5, 9, 15 and 18 of BCRA Communiqué “A” 6770, and points 1.2 and 5.3 of the BCRA Communiqué “A” 6844.
Proceeding filed against: Banco Macro SA, Foreign Exchange Team Leader, head of Foreign Exchange and Banking Operations manager and Compliance manager.
Status: On 12/29/2021, Banco Macro SA and the natural persons subject to summary proceedings filed their joint defenses, offering evidence and requesting an acquittal. On 03/15/2022, the BCRA dismissed the previous defenses performed by the Bank and the rest of the responsibles who, on 03/25/2022, filed an extraordinary appeal and a nullity request which was dismissed by the BCRA. Against such resolution, on 04/25/2022 a complaint appeal was filed to the Economic Federal Court, Courtroom No. 5, which dismissed the abovementioned appeal and submitted the file to an administrative area to continue with the proceeding. On 04/04/2023, the Bank filed a Defense Statement, being closed the evidence stage. As of the date of issuance of these condensed consolidated interim Financial Statements, the file is still pending.
Criminal foreign exchange summary proceedings: No. 8062 dated 08/08/2023.
Reason: Alleged infringements of Criminal Foreign Exchange Law, section 1(e) and (f), as well as points 1.2, 3.6.2, 3.16.1, 5.3, 10.4.2.4 and 10.4.2.5 of the Revised Text on Foreign Exchange Matters.
Proceeding filed against: Banco Macro SA, Foreign exchange Team Leader, Foreign Exchange Control Head, Banking Transactions Manager and Compliance Manager.
Status: The case is at its initial stage, the BCRA have not yet resolved the previous defenses and no opened case for the production of evidence.
Penalties imposed by the Financial Information Unit (UIF)
File: No. 248/2014 (UIF Note Presidency 245/2013 11/26/2013) dated 07/30/2014.
Reason: alleged deficiencies in preparing certain “Reports on suspicious transactions (ROS)” due to cases of infringement detected in certain customer files. Penalty amount: 330 (not restated).
Proceeding filed against: Banco Macro SA, the members of the Board and those in charge of anti-money laundering regulation compliance.
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 two of the Directors. On 01/26/2017 the fines imposed were paid. Against such resolution, the Bank and the individuals liable filed direct appeals, which will be decided at Room III of the CNACAF. Such appeals were dismissed through a final sentence dated 07/18/2019. On 08/15/2019, the Bank filed a federal extraordinary appeal which was dismissed through resolution dated 09/26/2019. On 10/03/2019 the Bank filed a complaint appeal to CSJN which was dismissed on 02/29/2024.
53
NOTES TO THE CONDENSED CONSOLIDATED INTERIMFINANCIAL STATEMENTS
AS OF MARCH 31, 2024
(Translation of Financial Statements originally issued in Spanish – See Note 44)
(Figures stated in thousands of pesos in constant currency)
Additionally, there are pending summary proceedings before the CNV and the UIF, as described below:
File: No. 1480/2011 (CNV Resolution No. 17529) dated 09/26/2014.
Reason: potential non-compliance with the obligation to inform a “Significant Event”. Penalty amount: 500 (not restated).
Proceeding filed against: Banco Macro SA, 10 members of the Board, 3 regular members of the Statutory Audit Committee and the person/s responsible for market.
Status: on 10/28/2014 the Bank and the persons involved filed their defenses offering evidence and requesting their acquittal. On 08/03/2015 the term to produce evidence was closed and on 08/19/2015 the defendants lodged their memorials. On 03/04/2021, the Board of Directors of the CNV filed a resolution dismissing the nullity and imposing a fine to the Bank jointly and severally with its Directors at the moment when the facts were investigated. Against such resolution, on 05/03/2021 a direct appeal was filed. In December 2021, the CNV referred the proceedings to the Federal Civil and Commercial Court of Appeals (CNACCF, for its acronym in Spanish), under the file number 14633/2021. On August 10, 2023, the Court considered the notice sent to the Argentine Government’s legal counsel. On 02/20/2024, the Court resolved to revoke the appealed resolution, declaring the sanctioning action extinguished for having infringed the guarantee of reasonable period and due process, with costs to the defeated party. On 03/06/2024 the CNV brought an Extraordinary Federal Appeal.
File: No. 137/2015 (UIF Resolution No. 136/2017) dated 12/19/2017.
Reason: alleged breach to the contents of the Code of Procedure applicable to Anti-money Laundering and Terrorism Financing as Settlement and Clearing Agent at the time of an inspection of the CNV and to the Internal Audit Process referred to in its capacity as comprehensive settlement and clearing agent (UIF Resolution No. 229/2011, as amended), Penalty amount: 50 (not restated).
Proceeding filed against: Banco Macro SA and 23 members of the Management Body during the period that is the subject matter of these summary proceedings.
Status: on 04/23/2019, UIF passed Resolution No. 41, whereby it resolved the lack of responsibility of three of the Directors, and also imposed fines to the rest liable. On 05/15/2019 the imposed fines were paid and on 06/12/2019, the Bank, its Board of Directors and its statutory audits filed a direct appeal against such resolution, requesting a repeal of the penalty imposed. The file was submitted to Courtroom V of CNACAF. On 05/11/2021, such Courtroom issued a sentence dismissing the direct appeal filed by the Banco Macro SA and against that on 05/26/2021, this Bank filed a federal extraordinary appeal. On 12/09/2021 the CNACAF decided to allow the imposed Extraordinary appeal submitted the file to the CSJN on 02/03/2022. As of the date of issuance of these condensed consolidated interim Financial Statements, the CSJN had not issued a decision on the appeal filed.
File: No. 1208/2014 (UIF Resolution No. 13/2016) dated 01/15/2016.
Reason: alleged failure to comply with Anti-Money Laundering Law, as amended, and UIF Resolution No. 121/11.
Proceeding filed against: Banco Macro SA and 11 members of the Board of Directors.
Status: on 05/17/2018 UIF passed resolution No. 13/2016, whereby it filed the summary proceedings related to observations over an overall inspection performed by the BCRA. On 06/15/2018, the liable parties filed their defenses. On 07/02/2018, the UIF sustained the lack of capacity to be sued by one of the Directors, discarding his responsibility in this summary proceeding. On 01/08/2021 UIF filed Resolution No. 80 which imposed a fine to the Bank and the other liable parties. On 01/26/2021 through the BCRA account, the fine was paid for an amount of 60 (not restated). On 03/02/2021, against such resolution, a direct appeal was filed to CNACAF which was dismissed. On 08/27/2021 a Federal extraordinary appeal against such decision was filed. On 10/07/2021, the CNACAF dismissed the extraordinary appeal filed, passing the complaint appeal to CSJN. On November 7, 2023, the appeal was dismissed and the fine was confirmed.
File: No. 379/2015 (UIF Resolution No. 96/2019) dated 09/17/2019.
Reason: alleged failure to comply with Anti-Money Laundering Law, as amended, and UIF Resolution No. 121/11.
Proceeding filed against: Banco Macro SA and 11 members of the Board Directors.
54
NOTES TO THE CONDENSED CONSOLIDATED INTERIMFINANCIAL STATEMENTS
AS OF MARCH 31, 2024
(Translation of Financial Statements originally issued in Spanish – See Note 44)
(Figures stated in thousands of pesos in constant currency)
Status: On 10/02/2019, Banco Macro SA and the liable individuals were notified about the initiation of the proceedings. On 10/31/2019, the Bank and the individuals subject to summary proceedings filed their defense. On 01/07/2020, the party hearing the summary proceedings considered the defense filed and deferred the motion to dismiss for lack of capacity to be sued and statute of limitations upon issuing an opinion about the substance of the case. The administrative terms were suspended due to the social and preventive lockdown declared in the country due to the Covid-19 pandemic (DNU 297/2020), up to and including 11/29/2020. On 11/30/2020, terms were resumed (DNU 876/2020). On 03/02/2021, the passing of one of the Directors was informed and the lapse of the action against him was requested. In addition, as part of the BCRA summary proceedings styled “File No, 100889/15 – Banco Macro SA, Summary Proceedings No. 1496”, Resolution No. 2020-132-E-GDEBCRA-SEFYC#BCRA was issued, whereby penalties were imposed on Banco Macro SA and the parties subject to those proceedings, currently pending before the CNACAF, Courtroom I (File No. 3784/2021). The transactions for which the parties are investigated have already been subject to penalties in the abovementioned BCRA summary proceedings; therefore, there cannot be simultaneous penalties based on the same subject matter. As a result, a request was made to prevent the application of all types of penalties to the parties subject to the summary proceedings. On 08/18/2021, it was resolved to set the case for the production of evidence. On 05/05/2022 the probationary period was closed and the actions were put to pledge, and on 07/13/2022 it moved to the stage of preparation of the final report. As of the date of issuance of these condensed consolidated interim Financial Statements, the case is pending resolution.
Although the penalties described above do not involve material amounts, as of the date of issuance of these condensed consolidated interim Financial Statements, the total amount of monetary penalties received, pending payment due to any appeal lodged by the Bank, amounts to 500 and was recognized according to the BCRA Communiqués “A” 5689 and 5940, as amended and supplemented.
The Bank’s Management and its legal counsel consider no further significant accounting effects could arise from the final outcome of the above mentioned judicial proceedings.
| 36.2 | The situation of Banco BMA SAU as of<br> December 31, 2023: |
|---|
Summary proceedings filed by the BCRA
File: No. 7810.
Reason: alleged breach in exchange matters, 1 operation in 2018 and 12 operations in 2020.
Proceeding filed against: Entity’s General Manager.
Status: on October 25, 2022, Banco BMA SAU filed their defenses. On April 20, 2023, the BCRA ordered the opening of the evidence stage, which is in progress as of the date of issuance of these condensed consolidated interim Financial Statements.
| 37. | CORPORATE BONDS ISSUANCE |
|---|---|
| 37.1 | Banco Macro SA |
| --- | --- |
The corporate bonds liabilities recorded by the Bank are as follows:
| Corporate Bonds | Original value | Residual face<br><br> value as of<br><br> 03/31/2024 | 03/31/2024 | 12/31/2023 | |||||
|---|---|---|---|---|---|---|---|---|---|
| Subordinated Resettable – Class A | USD | 400,000,000 | (1) | USD | 400,000,000 | 353,562,657 | 497,665,193 | ||
| Non-subordinated – Class E | USD | 17,000,000 | (2) | USD | 17,000,000 | 14,144,272 | 18,884,825 | ||
| Non-subordinated – Class F | USD | 53,000,000 | (3) | USD | 53,000,000 | 44,523,138 | 62,802,980 | ||
| Total | 412,230,067 | 579,352,998 |
55
NOTES TO THE CONDENSED CONSOLIDATED INTERIMFINANCIAL STATEMENTS
AS OF MARCH 31, 2024
(Translation of Financial Statements originally issued in Spanish – See Note 44)
(Figures stated in thousands of pesos in constant currency)
On April 26, 2016, the general regular shareholders’ meeting approved the creation of a Global Program for the Issuance of Medium-Term Debt Securities, in accordance with the provisions of Law No. 23576, as amended and further applicable regulations, up to a maximum amount outstanding at any time during the term of the program of USD 1,000,000,000 (one billion US dollars), or an equal amount in other currencies or power units, under which it is possible to issue simple corporate bonds, not convertible into shares in one or more classes. Also, on April 28, 2017, the General Regular and Special Shareholder’ Meeting resolved to extend the maximum amount of the abovementioned Global Program up to USD 1,500,000,000 (one thousand five hundred millions US dollars), and on April 27, 2018, the abovementioned Shareholders’ Meeting resolved to increase the maximum amount of the Global Program for the Issuance of Corporate Bonds, in face value, from USD 1,500,000,000 to USD 2,500,000,000 or an equal amount in other currencies, as determined by the Board of Directors in due time. Finally, on October 20, 2021 due to a Board of Director resolution, the Bank required from the CNV a five-year extension of the abovementioned program, which was approved by the Regulator through a note issued on December 15, 2021.
| (1) | On November 4, 2016, under the<br> abovementioned Global Program, the Bank issued Subordinated Resettable Corporate Bonds, class<br> A, at a fixed rate of 6.750% p.a. until reset date, fully amortizable upon maturity (November 4,<br> 2026) for a face value of USD 400,000,000 (four hundred million US dollars), under the terms<br> and conditions set forth in the pricing supplement dated October 21, 2016. Interest<br> is paid semiannually on May 4 and November 4 of every year and the reset date was<br> November 4, 2021. |
|---|
As of the date of issuance of these condensed consolidated interim Financial Statements, the reset rate was established until the maturity date at 6.643% as a result of the benchmark reset rate plus 546.3 basis points, according to the abovementioned terms and conditions. As the Bank had not exercised the option to fully or partially redeem the issuance on the reset date and under the conditions established in the pricing supplement, it was established up to maturity.
On the other hand, it could be fully redeemed, not partially, and only for tax or regulatory purposes. The Bank used the funds derived from such issuance to grant loans in accordance with BCRA guidelines.
| (2) | On May 2, 2022, under the abovementioned<br> Global Program, the Bank issued Class E non-subordinated simple corporate bonds not<br> convertible into shares, for a face value of USD 17,000,000 at a fixed rate of 1.45%, fully<br> amortizable upon maturity (May 2, 2024), under the terms and conditions set forth in<br> the price supplement dated April 21, 2022. Interest is paid quarterly on August 2,<br> 2022, November 2, 2022, February 2, 2023, May 2, 2023, August 2, 2023,<br> November 2, 2023, February 2, 2024, and May 2, 2024. |
|---|
At any time, according to the current regulations, particularly the BCRA’s foreign exchange regulations, the Bank may opt to redeem Class E Corporate Bonds in full, not partially, at a price equal to (a) 102% of the outstanding principal if the Bank decides to make the redemption from the date of issuance and settlement through the term of 9 months therefrom, including the last business day; (b) 101% of outstanding principal if the Bank decides to make the redemption within the term starting 9 months after the date of issuance and settlement until the Class E maturity date, in all cases, along with the additional amount and accrued and unpaid interest, excluding the redemption date.
On May 2, 2024, the whole issuance of this series and the interest service corresponding to the period between February 2, 2024, date included, and May 2, 2024 were paid off.
| (3) | On October 31, 2023, under the<br> abovementioned Global Program, the Bank issued Class F corporate bonds for a face value<br> of USD 53,000,000 (fifty-three million US dollars) at a fixed rate of 5%, fully amortizable<br> upon maturity (October 31, 2024), under the terms and conditions set forth in the price<br> supplement dated October 24, 2023. Interest is paid semiannually on April 30, 2024,<br> and at the expiration date. |
|---|
At any time, according to the current regulations, particularly the BCRA’s foreign exchange regulations, the Bank may opt to redeem Class F corporate bonds in full, but not partially, at a price equal to (a) 102% of the outstanding principal if the Bank decides to redeem the bonds between the date of issuance and settlement date through the term of 9 months therefrom, including the last business day; (b) 101% of outstanding principal if the Bank decides to redeem them within the term starting 9 months after the date of issuance and settlement through Class F corporate bonds maturity date; in any case, along with the additional amounts and accrued and unpaid interest, excluding the redemption date.
56
NOTES TO THE CONDENSED CONSOLIDATED INTERIMFINANCIAL STATEMENTS
AS OF MARCH 31, 2024
(Translation of Financial Statements originally issued in Spanish – See Note 44)
(Figures stated in thousands of pesos in constant currency)
| 37.1 | Banco BMA SAU |
|---|
The corporate bonds liabilities recorded by Banco BMA SAU are as follows:
| Corporate Bonds | Original value | Residual face <br> value as of<br><br> 03/31/2024 | 03/31/2024 | 12/31/2023 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Non-subordinated –Series XXXII | 1,000,000 | (1) | 1,000,000 | (1) | 8,511,523 | 7,562,925 | ||||
| Total | 8,511,523 | 7,562,925 | ||||||||
| (1) | Value expressed in thousands of pesos. | |||||||||
| --- | --- |
On February 29, 2008, the shareholders’ meeting of Banco BMA SAU approved the presentation of a program for the issuance and placement of corporate bonds for USD 250,000,000 or its equivalent in other currencies. On April 30, 2008, the Board of Directors of the CNV authorized through resolution No. 15869 the entry of Banco Itaú Argentina SA into public offering regime through the issuance of corporate bonds for up to an amount of USD 250,000,000 or its equivalent in other currencies. On April 30, 2008, the CNV approved the Program Prospectus.
On March 9, 2013, the shareholders’ meeting of Banco BMA SAU resolved to extend the amount of the Corporate Bonds Program up to USD 350,000,000 or its equivalent in other currencies. On May 23, 2018, the CNV approved through resolution No.19527 the increase in the amount and the extension of the Program.
On March 14, 2022, under the abovementioned Program, Banco BMA SAU issued non-subordinated corporate bonds Series XXXII at a fixed rate of 2.78% plus UVA adjustment, fully amortizable upon maturity (August 18, 2025). Interest is paid quarterly, in arrears.
| 38. | OFF BALANCE SHEET TRANSACTIONS |
|---|
In addition to Note 4, the Bank maintains different off balance sheet transactions, pursuant to the BCRA standards. The composition of the amounts of the main off balance sheet transactions as of March 31, 2024 and December 31, 2023, is as follows:
| Composition | 03/31/2024 | 12/31/2023 | ||
|---|---|---|---|---|
| Custody of government and private securities and other assets held by third parties | 4,869,104,110 | 5,287,497,410 | ||
| Preferred and other collaterals received from customers (1) | 922,585,225 | 1,220,415,421 | ||
| Checks already deposited and pending clearance | 144,640,788 | 165,290,079 | ||
| Outstanding checks not yet paid | 52,244,968 | 119,940,045 | ||
| (1) | Related to collaterals used to secure<br> loans transactions and other financing, under the applicable rules in force on this<br> matter. | |||
| --- | --- | |||
| 39. | TAX AND OTHER CLAIMS | |||
| --- | --- | |||
| 39.1 | 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 income<br> tax returns filed by former Banco Bansud SA (for the fiscal years from June 30, 1995,<br> through June 30, 1999, and for the irregular six-month period ended December 31,<br> 1999) and by former Banco Macro SA (for the fiscal years ended from December 31, 1998,<br> 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.
57
NOTES TO THE CONDENSED CONSOLIDATED INTERIMFINANCIAL STATEMENTS
AS OF MARCH 31, 2024
(Translation of Financial Statements originally issued in Spanish – See Note 44)
(Figures stated in thousands of pesos in constant currency)
| b) | The AFIP’s ex-officio undocumented<br> expenses determinations for the periods February, April, May 2015 and from July 2015<br> through January 2018, both included of date April 19, 2021, On October 5,<br> 2021, the Bank filed an appeal to the Federal Tax Court which is in process in Courtroom<br> B, Office 6, under file 2021-96970075. |
|---|---|
| c) | Ex-officio turnover tax determinations in<br> progress and/or adjustments, as a withholding agent and over municipal fees, pending resolution<br> by the tax authorities of certain jurisdictions. |
| --- | --- |
The Bank’s Management and its legal counsel consider no further significant accounting effects could arise from the final outcome of the abovementioned proceedings other than those disclosed in these condensed consolidated interim Financial Statements.
| 39.2 | Other claims |
|---|
Before merging with and into the Bank, Banco Privado de Inversiones SA (BPI) had a pending class action styled “Adecua v, Banco Privado de Inversiones on ordinary proceedings”, File No. 19073/2007, pending with National Commercial Court No. 3, Clerk’s Office No. 5, whereby it was required to reimburse to its clients the life insurance amounts overcharged to amounts payable as well as to reduce the amounts charged in this regard in the future; this legal proceeding was concluded upon the abovementioned merger because BPI complied in full with the terms of the court-approved agreement reached with Adecua before answering the complaint. However, in March 2013, when BPI had already been merged with and into the Bank, the trial court resolved to amend the terms of the agreement and ordered the reimbursement of amounts of money to a larger number of clients as compared to the number arising from the terms approved by the court in due time. Such resolution was appealed by the Bank as BPI’s surviving company. The appeal was dismissed by the Court of Appeals, which abrogated both the trial court decision and the court-approved agreement, thus ordering the Bank to answer the complaint. This gave rise to the filing of an extraordinary appeal against such decision as well as the subsequent filing of a complaint for the extraordinary appeal denied. On May 5, 2021, the Bank was notified of the dismissal of the complaint appeal, ordering the return of the main process to the National Court of Appeals for continuing with the proceedings, who also submitted them to the trial court, which received them on 09/27/2021 and were requested as effectum vivendi in proceedings “Estado Nacional – Ministerio Producción de la Nación c/ Asociación de Defensa de los Consumidores y Usuarios de la R.A y otros s/Ordinario” (File No. 6757/2013), in which the Bank is not a party, by the national commercial court No. 6, clerk’s office No. 11, where, as of the date of issuance of these condensed consolidated interim Financial Statements, they are still filed.
Moreover, the Bank is subject to another collective action for the same purpose, currently pending with National Commercial Court No. 7, Clerk’s Office No. 13, styled Unión de Usuarios y Consumidores v, Nuevo Banco Bisel on ordinary proceedings, File No. 44704/2008.
There are also other class actions initiated by consumer protection associations in relation to the collection of certain commissions and/or financial charges or practices and certain withholdings made by the Bank to individuals as CABA stamp tax withholding agent.
The Bank’s Management and its legal counsel consider no further significant accounting effects could arise from the final outcome of the abovementioned proceedings other than those disclosed in these condensed consolidated interim Financial Statements.
| 40. | RESTRICTION ON DIVIDENDS DISTRIBUTION |
|---|---|
| a) | According to BCRA regulations, 20% of<br> Banco Macro SA income for the year, without including Other comprehensive income, for the<br> year plus/less prior-year adjustments and less accumulated losses as for the prior year-end,<br> if any, should be allocated to the legal retained earnings. |
| --- | --- |
| b) | Through Communiqué “A”<br> 6464, as amended, the BCRA establishes the general procedure to distribute earnings. According<br> to that procedure, earnings may only be distributed if certain circumstances are met, such<br> as no records of financial assistance from the BCRA due to illiquidity or shortages in payments<br> of minimum capital or minimum cash requirement deficiencies and not being subject to the<br> provisions of sections 34 and 35 bis of the Financial Entities Law (sections dealing with<br> tax payment and restructuring agreements and reorganization of the Bank), among other conditions<br> listed in the abovementioned communiqué that must be met. In addition, the earnings<br> distribution approved by the shareholders’ meeting of the Bank could only be formalized<br> once the Superintendence of Financial and Foreign Exchange Entities of the BCRA approved<br> it. |
| --- | --- |
58
NOTES TO THE CONDENSED CONSOLIDATED INTERIMFINANCIAL STATEMENTS
AS OF MARCH 31, 2024
(Translation of Financial Statements originally issued in Spanish – See Note 44)
(Figures stated in thousands of pesos in constant currency)
Additionally, profits may only be distributed to the extent that the financial institution has positive results, after deducting, on a non-accounting basis, from retained earnings and the optional reserves for the future distribution of profits, (i) the amounts of the legal and other earnings reserves which are mandatory, (ii) all debit amounts of each one of the accounting items recognized in “Other Comprehensive Income”, (iii) income from the revaluation of property, plant and equipment, intangible assets and investment property, (iv) the positive net difference between the amortized cost and the fair value of government debt instruments and/or monetary regulation instruments issued by the BCRA for those instruments recognized at amortized cost, (v) the adjustments identified by the Superintendence of Financial and Exchange Entities of the BCRA or by the independent external auditor and that have not been recognized in the accounting records and (vi) certain franchises granted by the BCRA. Moreover, no profit distributions shall be made out of the profit originated as a result of the first-time application of the IFRS, for which a normative reserve was created, and its balance as of March 31, 2024 was 101,052,679 (nominal value: 3,475,669).
The Bank must verify that, after completion of the earning distribution, a capital maintenance margin equal to 3.5% of risk-weighted assets is kept, apart from the minimum capital required by law, to be integrated by Tier 1 (COn1) ordinary capital, net of deductible items (CDCOn1).
According to Communiqué “A” 7984, the BCRA established that up to December 31, 2024, financial institutions which have the prior BCRA’s authorization will be allowed to distribute earnings up to 60% of the amount that would have corresponded in six equal, monthly and consecutive installments. Moreover, the BCRA established that the calculation of the items to determine the distributable earnings, as well as the amount of the installments, must be stated in constant currency as of the date of the meeting and the date of payment of each installment, as applicable. Subsequently, through Communiqué “A” 7997, the BCRA established that financial institutions that resolve or have resolved to distribute earnings within the framework of what is expected by the Communiqué "A” 7984, will be allowed to distribute earnings in three equal, monthly and consecutive installments up to the related amount in accordance with the abovementioned Communiqué. Such Communiqué also established that financial institutions must grant the option to each non-resident shareholder to receive their dividends –totally or partially– in a single cash installment as long as those funds are applied directly to the primary subscription of Bonds for the reconstruction of a free Argentina (BOPREAL, for its acronym in Spanish) in accordance with current exchange regulations.
| c) | Pursuant to CNV General Resolution No. 622,<br> the shareholders’ meeting in charge of analyzing the annual Financial Statements will<br> 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<br> shares, the creation of earnings reserves additional to the legal earnings retained or a<br> combination of any of these applications. |
|---|
Moreover, as it is mentioned in Note 30, the Regular Shareholders’ Meeting of Banco Macro SA held on April 12, 2024 decided to applied the unappropriated retained earnings for an amount of 587,913,905 (not restated) as follows (the abovementioned figures are stated in constant currency as of December 31, 2023):
| a) | 117,460,821 to the Legal Reserve; |
|---|---|
| b) | 1,737,776 to the Personal Asset Tax on<br> Business Companies; and |
| --- | --- |
| c) | 468,715,308 to the Facultative Reserve<br> for Future Distribution of Earnings. |
| --- | --- |
In addition, the shareholders decided to partially apply the Facultative Reserve for Future Distribution of Earnings, in order to allocate up to the amount of 294,130,168 (the abovementioned figures are stated in constant currency as of December 31, 2023) to the payment of a cash dividend and/or dividend in kind subject to prior authorization from the BCRA. On May 6, 2024, the BCRA authorized this earnings distribution.
| 41. | CAPITAL MANAGEMENT, CORPORATE GOVERNANCE TRANSPARENCY POLICY AND RISK MANAGEMENT |
|---|
As a financial institution, Banco Macro SA is governed by Financial Entities Law No. 21526, as supplemented, and the regulations issued by the BCRA, and is exposed to intrinsic risks related to the financial industry. Moreover, the Bank adheres to the good banking practices laid out in BCRA Communiqué “A” 7465 - Financial Entities Corporate Governance Guidelines. Detailed explanations about the main aspects related to capital management, corporate governance transparency policy and risk management related to the Bank, are disclosed in Note 45 to the consolidated Financial Statements as of December 31, 2023, already issued.
Additionally, the table below shows the minimum capital requirements measured on a consolidated basis, effective for the month of March 2024, together with the integration thereof (computable equity) as of the end of such month:
59
NOTES TO THE CONDENSED CONSOLIDATED INTERIMFINANCIAL STATEMENTS
AS OF MARCH 31, 2024
(Translation of Financial Statements originally issued in Spanish – See Note 44)
(Figures stated in thousands of pesos in constant currency)
| Item | 03/31/2024 | |
|---|---|---|
| Minimum capital requirements | 548,916,744 | |
| Computable equity | 3,140,848,842 | |
| Capital surplus | 2,591,932,098 | |
| 42. | CHANGES IN THE ARGENTINE MACROECONOMIC ENVIRONMENT AND FINANCIAL AND CAPITAL MARKETS | |
| --- | --- |
In the last years, the argentine financial market has observed a prolonged period of volatility in the market prices of public and private financial instruments, including a high level of country risk, an increase in the official exchange rate between the argentine peso and the US dollar, an increase in interest rates and a significant acceleration of the inflation rate (see Note 3. section "unit of measurement").
Particularly, related to the price of the US dollar, since the end of 2019 the gap between the official price of the US dollar -used mainly for foreign trade- and alternative market values began to widen significantly, having reached maximum peaks close to 200%. As of the date of issuance of these condensed consolidated interim Financial Statements, the aforementioned gap amounts to approximately 38%.
Regarding the administration of the national public debt, a restructuring process has been observed, including various voluntary exchanges and agreements reached regarding debts with the Paris Club and the International Monetary Fund.
In this context, on December 10, 2023, the new authorities of the argentine national government took office and issued a series of emergency measures. Among the main objectives pursued, among other relevant issues, are a regulatory flexibility in economic matters, reduction of the fiscal deficit mainly through a reduction in spending, including reduction of different types of subsidies. Likewise, there was a devaluation of the argentine peso close to 55% against to the US dollar (increasing the US dollar price from 366.50 pesos to 799.95 pesos on December 13, 2023), which has generated an acceleration of the inflation rate, with interannual inflation measured from the national CPI published by INDEC being 289.4% at the date of issue of these condensed consolidated interim Financial Statements.
The comprehensive program pursued by the new national government includes reforms in the economy, justice, foreign relations, infrastructure and others. On December 20, 2023, through Decree of Necessity and Urgency No. 70/2023, a significant number of reforms were established, regarding which different actors presented various protections or unconstitutionality requests to Justice to stop their application. On the other hand, as of the date of issuance of these condensed consolidated interim Financial Statements, a bill is under parliamentary treatment and include among its points, delegation of powers to the Executive Branch, tax, labor and social security reforms, among others.
In addition, the local and international macroeconomic context generates certain degree of uncertainty regarding its future progress, considering the level of the global economic recovery.
Therefore, the Bank’s Management permanently monitors any changes in the abovementioned situations, to determine the possible actions to adopt and to identify the possible impact on its financial situation that may need to be reflected in the future Financial Statements.
| 43. | EVENTS AFTER REPORTING PERIOD |
|---|
No other significant events occurred between the end of the period and the issuance of these condensed consolidated interim Financial Statements that may materially affect the financial position or the profit and loss of the period, not disclosed in these condensed consolidated interim Financial Statements.
| 44. | ACCOUNTING PRINCIPLES – EXPLANATION ADDED FOR TRANSLATION INTO ENGLISH |
|---|
These condensed consolidated interim Financial Statements are presented in accordance with the accounting framework established by the BCRA, as mentioned in Note 3. These accounting standards may not conform to accounting principles generally accepted in other countries.
| | Jorge Pablo Brito |
| --- | --- | | 60 | Chairperson | | EXHIBIT B | | --- | | CONSOLIDATED CLASSIFICATION OF LOANS AND OTHER FINANCING | | BY SITUATION AND COLLATERAL RECEIVED | | AS OF MARCH 31, 2024 AND DECEMBER 31, 2023 | | (Translation<br> of the Financial Statements originally issued in Spanish – See Note 44) | | (Figures<br> stated in thousands of pesos in constant currency) | | COMMERCIAL | 03/31/2024 | | 12/31/2023 | | | --- | --- | --- | --- | --- | | In normal situation | | 1,236,270,938 | | 1,356,414,152 | | With senior “A” collateral and counter-collateral | | 108,065,432 | | 104,053,613 | | With senior “B” collateral and counter-collateral | | 98,575,337 | | 131,517,141 | | Without senior collateral or counter-collateral | | 1,029,630,169 | | 1,120,843,398 | | Subject to special monitoring | | 2,789,052 | | | | In observation | | | | | | With senior “B” collateral and counter-collateral | | 2,788,963 | | | | Without senior collateral or counter-collateral | | 89 | | | | Troubled | | 5,850,363 | | 7,217,206 | | With senior “B” collateral and counter-collateral | | 3,865,735 | | 5,526,792 | | Without senior collateral or counter-collateral | | 1,984,628 | | 1,690,414 | | With high risk of insolvency | | 156,096 | | 6,026,814 | | With senior “A” collateral and counter-collateral | | 103,316 | | 491,940 | | With senior “B” collateral and counter-collateral | | | | 4,112,685 | | Without senior collateral or counter-collateral | | 52,780 | | 1,422,189 | | Irrecoverable | | 2,965,616 | | 3,295,312 | | Without senior collateral or counter-collateral | | 2,965,616 | | 3,295,312 | | Subtotal commercial | | 1,248,032,065 | | 1,372,953,484 |
| | Jorge Pablo Brito |
| --- | --- | | 61 | Chairperson | | EXHIBIT B | | --- | | (continued) | | CONSOLIDATED CLASSIFICATION OF LOANS AND OTHER FINANCING | | BY SITUATION AND COLLATERAL RECEIVED | | AS OF MARCH 31, 2024 AND DECEMBER 31, 2023 | | (Translation<br> of the Financial Statements originally issued in Spanish – See Note 44) | | (Figures<br> stated in thousands of pesos in constant currency) | | CONSUMER AND MORTGAGE | 03/31/2024 | | 12/31/2023 | | | --- | --- | --- | --- | --- | | Performing | | 1,554,506,251 | | 1,877,677,557 | | With senior “A” collateral and counter-collateral | | 108,764,058 | | 139,681,193 | | With senior “B” collateral and counter-collateral | | 82,057,987 | | 114,499,858 | | Without senior collateral or counter-collateral | | 1,363,684,206 | | 1,623,496,506 | | Low risk | | 22,597,502 | | 15,870,722 | | With senior “A” collateral and counter-collateral | | 809,637 | | 385,553 | | With senior “B” collateral and counter-collateral | | 1,441,927 | | 408,776 | | Without senior collateral or counter-collateral | | 20,345,938 | | 15,076,393 | | Low risk - in special treatment | | 71,305 | | 117,533 | | Without senior collateral or counter-collateral | | 71,305 | | 117,533 | | Medium risk | | 10,687,231 | | 10,644,183 | | With senior “A” collateral and counter-collateral | | 152,131 | | 202,406 | | With senior “B” collateral and counter-collateral | | 505,203 | | 241,123 | | Without senior collateral or counter-collateral | | 10,029,897 | | 10,200,654 | | High risk | | 7,954,289 | | 10,208,505 | | With senior “A” collateral and counter-collateral | | 107,283 | | 291,015 | | With senior “B” collateral and counter-collateral | | 44,015 | | 136,956 | | Without senior collateral or counter-collateral | | 7,802,991 | | 9,780,534 | | Irrecoverable | | 4,844,593 | | 5,047,199 | | With senior “A” collateral and counter-collateral | | 4,813 | | 5,126 | | With senior “B” collateral and counter-collateral | | 353,155 | | 525,023 | | Without senior collateral or counter-collateral | | 4,486,625 | | 4,517,050 | | Subtotal consumer and mortgage | | 1,600,661,171 | | 1,919,565,699 | | Total | | 2,848,693,236 | | 3,292,519,183 |
| | Jorge Pablo Brito |
| --- | --- | | 62 | Chairperson | | EXHIBIT B | | --- | | (continued) | | CONSOLIDATED CLASSIFICATION OF LOANS AND OTHER FINANCING | | BY SITUATION AND COLLATERAL RECEIVED | | AS OF MARCH 31, 2024 AND DECEMBER 31, 2023 | | (Translation<br> of the Financial Statements originally issued in Spanish – See Note 44) | | (Figures<br> stated in thousands of pesos in constant currency) |
This exhibit discloses the contractual figures as established by the BCRA. The conciliation with the condensed consolidated interim Statements of financial position is listed below.
| 03/31/2024 | 12/31/2023 | |||||
|---|---|---|---|---|---|---|
| Loans and other financing | 2,500,584,654 | 2,780,228,296 | ||||
| Added: | ||||||
| Allowances for loans and other financing | 69,202,619 | 81,341,779 | ||||
| Adjustment amortized cost and fair value | 8,286,204 | 22,435,659 | ||||
| Debt securities of financial trust - Measured at amortized cost | 826,469 | 1,008,496 | ||||
| Corporate bonds | 10,640,358 | 15,647,704 | ||||
| Subtract: | ||||||
| Interest and other accrued items receivable from financial assets with impaired credit value | (894,010 | ) | (995,773 | ) | ||
| Loans to employees | (3,445,554 | ) | (2,984,568 | ) | ||
| Guarantees provided and contingent liabilities | 263,492,496 | 395,837,590 | ||||
| Total computable items | 2,848,693,236 | 3,292,519,183 |
| | Jorge Pablo Brito |
| --- | --- | | 63 | Chairperson | | EXHIBIT C | | --- | | CONSOLIDATED CONCENTRATION OF LOANS AND FINANCING FACILITIES | | AS OF MARCH 31, 2024 AND DECEMBER 31, 2023 | | (Translation<br> of the Financial Statements originally issued in Spanish – See Note 44) | | (Figures<br> stated in thousands of pesos in constant currency) | | | 03/31/2024 | | | | 12/31/2023 | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | Number of customers | Cut off<br> balance | | % of total<br><br> portfolio | | Cut off<br> balance | | % of total<br><br> portfolio | | | 10 largest customers | | 340,285,004 | | 11.95 | | 325,234,962 | | 9.88 | | 50 next largest customers | | 396,093,375 | | 13.90 | | 448,339,194 | | 13.62 | | 100 next largest customers | | 228,999,980 | | 8.04 | | 260,601,569 | | 7.90 | | Other customers | | 1,883,314,877 | | 66.11 | | 2,258,343,458 | | 68.60 | | Total (1) | | 2,848,693,236 | | 100.00 | | 3,292,519,183 | | 100.00 | | (1) | See reconciliation in Exhibit B. | | --- | --- |
| | Jorge Pablo Brito |
| --- | --- | | 64 | Chairperson | | EXHIBIT D | | --- | | CONSOLIDATED BREAKDOWN OF LOANS AND OTHER FINANCING BY TERMS | | AS OF MARCH 31, 2024 | | (Translation<br> of the Financial Statements originally issued in Spanish – See Note 44) | | (Figures<br> stated in thousands of pesos in constant currency) | | | | | Remaining<br> terms to maturity | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | Item | Matured | | Up to 1<br> <br><br> month | | Over 1<br> <br><br> month and<br><br> up to 3<br><br> months | | Over 3<br><br> months and<br><br> up to 6<br><br> months | | Over 6<br><br> months and<br><br> up to 12<br><br> months | | Over 12<br><br> months and<br><br> up to 24<br><br> months | | Over 24<br><br> months | | Total | | | Non-financial government sector | | 623,817 | | 1,988,230 | | 71,412 | | 88,039 | | 144,390 | | 130,509 | | | | 3,046,397 | | Financial sector | | | | 30,463,469 | | 455,777 | | 1,268,395 | | 3,378,816 | | 1,972,164 | | 320,326 | | 37,858,947 | | Non-financial private sector and foreign residents | | 18,331,945 | | 1,133,635,427 | | 440,730,563 | | 497,800,688 | | 512,036,346 | | 409,403,711 | | 449,472,300 | | 3,461,410,980 | | Total | | 18,955,762 | | 1,166,087,126 | | 441,257,752 | | 499,157,122 | | 515,559,552 | | 411,506,384 | | 449,792,626 | | 3,502,316,324 |
This exhibit discloses the contractual future cash flows that include interest and charges to be accrued until maturity of the contracts.
| CONSOLIDATED BREAKDOWN OF LOANS AND OTHER FINANCING BY TERMS | ||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| AS OF DECEMBER 31, 2023 | ||||||||||||||||
| (Translation<br> of the Financial Statements originally issued in Spanish – See Note 44) | ||||||||||||||||
| (Figures<br> stated in thousands of pesos in constant currency) | ||||||||||||||||
| Remaining<br> terms to maturity | ||||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Item | Matured | Up to 1<br> <br><br>month | Over 1<br><br> month and <br><br> up to 3<br><br> months | Over 3<br><br> months and<br><br> up to 6<br><br> months | Over 6<br><br> months and<br><br> up to 12<br><br> months | Over 12<br><br> months and<br><br> up to 24<br><br> months | Over 24<br><br> months | Total | ||||||||
| Non-financial government sector | 164 | 4,777,539 | 2,148,952 | 165,600 | 275,969 | 318,501 | 7,686,725 | |||||||||
| Financial sector | 11,789,627 | 566,381 | 3,960,976 | 5,944,849 | 3,287,502 | 1,289,415 | 26,838,750 | |||||||||
| Non-financial private sector and foreign residents | 23,850,362 | 1,499,932,361 | 569,151,441 | 534,482,203 | 588,397,166 | 496,131,106 | 509,078,566 | 4,221,023,205 | ||||||||
| Total | 23,850,526 | 1,516,499,527 | 571,866,774 | 538,608,779 | 594,617,984 | 499,737,109 | 510,367,981 | 4,255,548,680 |
This exhibit discloses the contractual future cash flows that include interest and charges to be accrued until maturity of the contracts.
| | Jorge Pablo Brito |
| --- | --- | | 65 | Chairperson | | EXHIBIT F | | --- | | CONSOLIDATED CHANGE OF PROPERTY, PLANT AND EQUIPMENT | | AS OF MARCH 31, 2024 | | (Translation<br> of the Financial Statements originally issued in Spanish – See Note 44) | | (Figures<br> stated in thousands of pesos in constant currency) | | | Original | | | | | | | | Depreciation<br> of the period | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | Item | value<br> at<br><br> beginning of<br><br> fiscal year | Total<br> life<br><br> estimated<br><br> in years | Increases | Decreases | Transfers | | Difference<br><br> for<br><br> conversion | | Accumulated | Transfers | | Decrease | Difference<br><br> for<br><br> conversion | | Of<br> the<br><br> period | At<br> the end | Residual<br> value<br><br> at the end of<br><br> the period | | Cost | | | | | | | | | | | | | | | | | | | Real property | 510,541,965 | 50 | 568,389 | 403,381 | 1,490,923 | | | | 78,910,352 | | | 410,384 | | | 2,789,345 | 81,289,313 | 430,908,583 | | Furniture and facilities | 90,464,467 | 10 | 384,878 | 550,857 | 1,009,318 | | (654 | ) | 51,721,192 | | | 354,609 | (88 | ) | 1,539,294 | 52,905,789 | 38,401,363 | | Machinery and equipment | 148,568,612 | 5 | 4,379,871 | 1,866,457 | 190,239 | | (34,274 | ) | 111,493,562 | | | 1,614,986 | (5,810 | ) | 3,252,483 | 113,125,249 | 38,112,742 | | Vehicles | 16,865,688 | 5 | 756,851 | 179,700 | | | (16,097 | ) | 11,917,284 | | | 126,105 | (4,194 | ) | 471,629 | 12,258,614 | 5,168,128 | | Other | 11,367,749 | 3 | 735 | | | | (15,945 | ) | 11,252,576 | | | 50,894 | (2,041 | ) | 60,873 | 11,260,514 | 92,025 | | Work in progress | 12,958,619 | | 3,141,798 | | (2,690,480 | ) | | | | | | | | | | | 13,409,937 | | Right of use real property | 52,990,590 | 5 | 3,453,823 | 8,758,525 | | | (62,077 | ) | 40,623,096 | (252,599 | ) | 8,776,810 | (37,919 | ) | 2,306,068 | 33,861,836 | 13,761,975 | | Right of<br> use furniture | 3,777,820 | 5 | | | | | | | 649,655 | | | | | | | 649,655 | 3,128,165 | | Total<br> property, plant and equipment | 847,535,510 | | 12,686,345 | 11,758,920 | | | (129,047 | ) | 306,567,717 | (252,599 | ) | 11,333,788 | (50,052 | ) | 10,419,692 | 305,350,970 | 542,982,918 | | CONSOLIDATED CHANGE OF PROPERTY, PLANT AND EQUIPMENT | | --- | | AS OF DECEMBER 31, 2023 | | (Translation<br> of the Financial Statements originally issued in Spanish – See Note 44) | | (Figures<br> stated in thousands of pesos in constant currency) | | | Original | | | | | | | Depreciation<br> for the fiscal year | | | | | | | Residual | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | Item | value<br> at<br><br> beginning of<br><br> fiscal year | Total<br> life<br><br> estimated<br><br> in years | Increases | Decreases | Transfers | | Difference<br><br> for<br><br> conversion | Accumulated | Transfers | | Decrease | Difference<br><br> for<br><br> conversion | For<br> the <br><br> fiscal year | At<br> the end | value<br> at the<br><br> end of the<br><br> fiscal year | | Cost | | | | | | | | | | | | | | | | | Real property | 449,515,646 | 50 | 59,262,440 | 257,294 | 2,021,173 | | | 67,640,522 | (217,583 | ) | 41,632 | | 11,529,045 | 78,910,352 | 431,631,613 | | Furniture and facilities | 69,798,774 | 10 | 18,173,119 | 222,648 | 2,714,468 | | 754 | 45,987,204 | 2,788 | | 223,263 | 102 | 5,954,361 | 51,721,192 | 38,743,275 | | Machinery and equipment | 101,342,312 | 5 | 57,043,466 | 10,409,329 | 544,117 | | 48,046 | 108,679,975 | 1,858 | | 10,409,415 | 6,962 | 13,214,182 | 111,493,562 | 37,075,050 | | Vehicles | 13,574,543 | 5 | 4,540,509 | 1,252,538 | (13,844 | ) | 17,018 | 11,319,641 | 10,235 | | 1,015,738 | 4,599 | 1,598,547 | 11,917,284 | 4,948,404 | | Other | 3,912 | 3 | 11,341,364 | 703 | | | 23,176 | 11,197,675 | | | 703 | 2,303 | 53,301 | 11,252,576 | 115,173 | | Work in progress | 6,121,194 | | 13,733,940 | 72,587 | (6,823,928 | ) | | | | | | | | | 12,958,619 | | Right of use real property | 38,348,671 | 5 | 16,775,749 | 2,200,885 | 6,561 | | 60,494 | 34,648,825 | (1,049 | ) | 1,032,156 | 79,610 | 6,927,866 | 40,623,096 | 12,367,494 | | Right of<br> use furniture | | 5 | 3,777,820 | | | | | | | | | | 649,655 | 649,655 | 3,128,165 | | Total<br> property, plant and equipment | 678,705,052 | | 184,648,407 | 14,415,984 | (1,551,453 | ) | 149,488 | 279,473,842 | (203,751 | ) | 12,722,907 | 93,576 | 39,926,957 | 306,567,717 | 540,967,793 |
| | Jorge Pablo Brito |
| --- | --- | | 66 | Chairperson | | EXHIBIT F | | --- | | (continued) | | CONSOLIDATED CHANGE IN INVESTMENT PROPERTY | | AS OF MARCH 31, 2024 | | (Translation<br> of the Financial Statements originally issued in Spanish – See Note 44) | | (Figures<br> stated in thousands of pesos in constant currency) | | | Original<br><br> value at | Useful<br> life | | | Difference | | Depreciation<br> of the period | | | | | | Residual<br> value | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | Item | beginning<br> of<br><br> fiscal year | estimated<br><br> in years | Increases | Decreases | for<br><br> conversion | | Accumulated | Transfers | | Decrease | Of<br> the<br><br> period | At<br> the end | at<br> the end of<br><br> period | | Cost | | | | | | | | | | | | | | | Leased properties | 1,872,684 | 50 | | | | | 323,563 | 5,871 | | | 3,243 | 332,677 | 1,540,007 | | Other investment<br> properties | 44,591,934 | 50 | 830,976 | 103,474 | (818 | ) | 2,148,181 | (8,122 | ) | 103,474 | 208,682 | 2,245,267 | 43,073,351 | | Total<br> investment property | 46,464,618 | | 830,976 | 103,474 | (818 | ) | 2,471,744 | (2,251 | ) | 103,474 | 211,925 | 2,577,944 | 44,613,358 | | CONSOLIDATED CHANGE IN INVESTMENT PROPERTY | | --- | | AS OF DECEMBER 31, 2023 | | (Translation<br> of the Financial Statements originally issued in Spanish – See Note 44) | | (Figures<br> stated in thousands of pesos in constant currency) | | **** | Original value | Useful life | **** | **** | **** | **** | Difference | Depreciation for the fiscal year | | | | | Residual value | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | Item | at<br> beginning<br><br> of fiscal year | estimated<br><br> in years | Increases | Decreases | Transfers | | for<br><br> conversion | Accumulated | Transfers | Decrease | For<br> the fiscal<br><br> year | At<br> the end | at<br> the end of<br><br> the fiscal year | | Cost | | | | | | | | | | | | | | | Leased properties | 1,872,685 | 50 | | | (1 | ) | | 283,113 | 5,372 | | 35,078 | 323,563 | 1,549,121 | | Other investment<br> properties | 40,758,038 | 50 | 2,470,089 | 581,626 | 1,944,429 | | 1,004 | 1,316,977 | 333,379 | 356,458 | 854,283 | 2,148,181 | 42,443,753 | | Total<br> investment property | 42,630,723 | | 2,470,089 | 581,626 | 1,944,428 | | 1,004 | 1,600,090 | 338,751 | 356,458 | 889,361 | 2,471,744 | 43,992,874 |
| | Jorge Pablo Brito |
| --- | --- | | 67 | Chairperson | | EXHIBIT G | | --- | | CONSOLIDATED CHANGE IN INTANGIBLE ASSETS | | AS OF MARCH 31, 2024 | | (Translation<br> of the Financial Statements originally issued in Spanish – See Note 44) | | (Figures<br> stated in thousands of pesos in constant currency) | | **** | Original value at | Useful life | **** | **** | | Depreciation of the period | | | | | | Residual value at the | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | Item | beginning<br> of<br><br> fiscal year | estimated<br> <br><br> in years | Increases | Decreases | Transfers | Accumulated | Transfers | | Decrease | Of<br> the<br><br> period | At<br> the end | end<br> of the<br><br> period | | Cost | | | | | | | | | | | | | | Licenses | 66,969,713 | 5 | 1,373,623 | | | 46,353,897 | (5,605 | ) | | 3,164,269 | 49,512,561 | 18,830,775 | | Other intangible<br> assets | 295,191,053 | 5 | 9,624,787 | 1,940,850 | | 201,831,739 | 258,818 | | 1,344,335 | 10,488,571 | 211,234,793 | 91,640,197 | | Total<br> intangible assets | 362,160,766 | | 10,998,410 | 1,940,850 | | 248,185,636 | 253,213 | | 1,344,335 | 13,652,840 | 260,747,354 | 110,470,972 | | CONSOLIDATED CHANGE IN INTANGIBLE ASSETS | | --- | | AS OF DECEMBER 31, 2023 | | (Translation<br> of the Financial Statements originally issued in Spanish – See Note 44) | | (Figures<br> stated in thousands of pesos in constant currency) | | | Original value at | Useful life | | | | | Depreciation for the fiscal year | | | | | | Residual value at the | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | Item | beginning<br> of<br><br> fiscal year | estimated<br><br> in years | Increases | Decreases | Transfers | | Accumulated | Transfers | | Decrease | For the fiscal year | At the end | end<br> of the<br><br> fiscal year | | Cost | | | | | | | | | | | | | | | Licenses | 52,701,643 | 5 | 14,268,773 | | (703 | ) | 36,905,668 | (1,584 | ) | | 9,449,813 | 46,353,897 | 20,615,816 | | Other intangible assets | 183,303,478 | 5 | 112,827,276 | 931,835 | (7,866 | ) | 164,034,232 | 1,666 | | 28,477 | 37,824,318 | 201,831,739 | 93,359,314 | | Total intangible assets | 236,005,121 | | 127,096,049 | 931,835 | (8,569 | ) | 200,939,900 | 82 | | 28,477 | 47,274,131 | 248,185,636 | 113,975,130 |
| | Jorge Pablo Brito |
| --- | --- | | 68 | Chairperson | | EXHIBIT H | | --- | | CONSOLIDATED DEPOSIT CONCENTRATION | | AS OF MARCH 31, 2024 AND DECEMBER 31, 2023 | | (Translation<br> of the Financial Statements originally issued in Spanish – See Note 44) | | (Figures<br> stated in thousands of pesos in constant currency) | | | 03/31/2024 | | | | 12/31/2023 | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | Number of customers | Outstanding<br><br> balance | | %<br> of total<br><br> portfolio | | Outstanding<br><br> balance | | %<br> of total<br><br> portfolio | | | 10 largest customers | | 1,201,909,781 | | 23.87 | | 614,268,947 | | 12.02 | | 50 next largest customers | | 664,528,562 | | 13.20 | | 495,709,242 | | 9.70 | | 100 next largest customers | | 228,827,295 | | 4.54 | | 208,211,954 | | 4.07 | | Other customers | | 2,940,495,279 | | 58.39 | | 3,791,832,471 | | 74.21 | | Total | | 5,035,760,917 | | 100.00 | | 5,110,022,614 | | 100.00 |
| | Jorge Pablo Brito |
| --- | --- | | 69 | Chairperson | | EXHIBIT I | | --- | | CONSOLIDATED BREAKDOWN OF FINANCIAL LIABILITIES FOR RESIDUAL TERMS | | AS OF MARCH 31, 2024 | | (Translation<br> of the Financial Statements originally issued in Spanish – See Note 44) | | (Figures<br> stated in thousands of pesos in constant currency) | | | Remaining<br> terms to maturity | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | Item | Up to 1 month | | Over 1 month and up to 3 months | | Over 3 months and up to 6 months | | Over 6 months and up to 12 months | | Over 12 months and up to 24 months | | Over 24 months | | Total | | | Deposits | | 4,686,284,908 | | 218,303,057 | | 227,523,410 | | 7,339,469 | | 1,849,840 | | 9,057 | | 5,141,309,741 | | From the<br> non-financial government sector | | 518,881,630 | | 6,527,430 | | 2,964,178 | | 8,381 | | 1,697 | | | | 528,383,316 | | From the<br> financial sector | | 13,371,241 | | | | | | | | | | | | 13,371,241 | | From the<br> non-financial private sector and foreign residents | | 4,154,032,037 | | 211,775,627 | | 224,559,232 | | 7,331,088 | | 1,848,143 | | 9,057 | | 4,599,555,184 | | Liabilities at fair value<br> through profit or loss | | 19,867,094 | | | | | | | | | | | | 19,867,094 | | Derivative instruments | | 5,252,316 | | 698,117 | | | | | | | | | | 5,950,433 | | Repo transactions | | 21,054,262 | | 16,837 | | | | | | | | | | 21,071,099 | | Other<br> financial institutions | | 21,054,262 | | 16,837 | | | | | | | | | | 21,071,099 | | Other financial liabilities | | 447,672,694 | | 2,798,392 | | 1,650,878 | | 3,166,450 | | 4,654,889 | | 15,001,601 | | 474,944,904 | | Financing received from<br> the BCRA and other financial institutions | | 3,434,739 | | 6,097,531 | | 4,268,924 | | 4,213,708 | | 2,259,959 | | 52,153 | | 20,327,014 | | Issued corporate bonds | | 1,093,443 | | 14,181,824 | | 63,913 | | 45,091,845 | | 9,401,665 | | | | 69,832,690 | | Subordinated corporate bonds | | | | 11,364,635 | | | | 11,364,635 | | 22,729,272 | | 364,882,989 | | 410,341,531 | | Total | | 5,184,659,456 | | 253,460,393 | | 233,507,125 | | 71,176,107 | | 40,895,625 | | 379,945,800 | | 6,163,644,506 |
This exhibit discloses contractual future cash flows that include interests and charges to be accrued until maturity of the contracts.
| | Jorge Pablo Brito |
| --- | --- | | 70 | Chairperson | | EXHIBIT I | | --- | | CONSOLIDATED BREAKDOWN OF FINANCIAL LIABILITIES FOR RESIDUAL TERMS | | AS OF DECEMBER 31, 2023 | | (Translation<br> of the Financial Statements originally issued in Spanish – See Note 44) | | (Figures<br> stated in thousands of pesos in constant currency) | | | Remaining<br> terms to maturity | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | Item | Up to 1 month | | Over 1 month and up to 3 months | | Over 3 months and up to 6 months | | Over 6 months and up to 12 months | | Over 12 months and up to 24 months | | Over 24 months | | Total | | | Deposits | | 4,694,990,738 | | 282,449,788 | | 211,647,401 | | 99,891,731 | | 1,986,512 | | 22,346 | | 5,290,988,516 | | From the non-financial<br> government sector | | 276,883,859 | | 9,260,885 | | 7,699,399 | | | | 2,573 | | | | 293,846,716 | | From the financial<br> sector | | 30,605,533 | | | | | | | | | | | | 30,605,533 | | From the non-financial<br> private sector and foreign residents | | 4,387,501,346 | | 273,188,903 | | 203,948,002 | | 99,891,731 | | 1,983,939 | | 22,346 | | 4,966,536,267 | | Liabilities at fair value through<br> profit or loss | | 20,962,447 | | | | | | | | | | | | 20,962,447 | | Derivative instruments | | 622,746 | | 2,130,656 | | 197,692 | | 1,351,752 | | | | | | 4,302,846 | | Other financial institutions | | 35,881,080 | | 12 | | 3,606 | | 10,658 | | | | | | 35,895,356 | | Repo transactions | | 35,881,080 | | 12 | | 3,606 | | 10,658 | | | | | | 35,895,356 | | Other financial liabilities | | 534,471,805 | | 2,099,063 | | 2,556,171 | | 4,235,273 | | 6,670,150 | | 19,308,807 | | 569,341,269 | | Financing received from the BCRA<br> and other financial institutions | | 14,037,877 | | 5,606,112 | | 3,767,214 | | 3,200,468 | | 3,347,472 | | 94,062 | | 30,053,205 | | Issued corporate bonds | | | | 129,312 | | 21,482,010 | | 63,444,395 | | 8,460,345 | | | | 93,516,062 | | Subordinated corporate bonds | | | | | | 16,248,471 | | 16,248,471 | | 32,496,943 | | 521,687,711 | | 586,681,596 | | Total | | 5,300,966,693 | | 292,414,943 | | 255,902,565 | | 188,382,748 | | 52,961,422 | | 541,112,926 | | 6,631,741,297 |
This exhibit discloses contractual future cash flows that include interests and charges to be accrued until maturity of the contracts.
| | Jorge Pablo Brito |
| --- | --- | | 71 | Chairperson | | EXHIBIT J | | --- | | CONSOLIDATED CHANGES IN PROVISIONS | | AS OF MARCH 31, 2024 | | (Translation<br> of the Financial Statements originally issued in Spanish – See Note 44) | | (Figures<br> stated in thousands of pesos in constant currency) | | | Amounts<br> at<br><br> beginning of | | | | Decreases | | | | Monetary<br><br> effects<br><br> generated by | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | Item | fiscal<br> year | | Increases | | Reversals | | Charge<br> off | | provisions | | | 03/31/2024 | | | Provisions for eventual commitments | | 3,195,005 | | 703,172 | | | | 85,219 | | (1,130,609 | ) | | 2,682,349 | | For administrative, disciplinary and criminal penalties | | 758 | | | | | | | | (258 | ) | | 500 | | Contingencies with the BCRA | | | | 2,543 | | | | 2,543 | | | | | | | Other | | 10,061,297 | | 3,086,142 | | 373 | | 561,768 | | (3,511,169 | ) | | 9,074,129 | | Total provisions | | 13,257,060 | | 3,791,857 | | 373 | | 649,530 | | (4,642,036 | ) | | 11,756,978 | | CONSOLIDATED CHANGES IN PROVISIONS | | --- | | AS OF DECEMBER 31, 2023 | | (Translation<br> of the Financial Statements originally issued in Spanish – See Note 44) | | (Figures<br> stated in thousands of pesos in constant currency) | | | Amounts<br> at<br><br> beginning of | | | | Decreases | | | | Monetary<br><br> effects<br><br> generated by | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | Item | fiscal<br> year | | Increases | | Reversals | | Charge<br> off | | provisions | | | 12/31/2023 | | | Provisions for eventual commitments | | 3,289,869 | | 2,897,021 | | | | 221,432 | | (2,770,453 | ) | | 3,195,005 | | For administrative, disciplinary and criminal penalties | | 2,364 | | | | | | | | (1,606 | ) | | 758 | | Contingencies with the BCRA | | | | 1,819 | | | | 1,819 | | | | | | | Other | | 9,517,895 | | 16,016,624 | | 240,380 | | 6,504,879 | | (8,727,963 | ) | | 10,061,297 | | Total provisions | | 12,810,128 | | 18,915,464 | | 240,380 | | 6,728,130 | | (11,500,022 | ) | | 13,257,060 |
| | Jorge Pablo Brito |
| --- | --- | | 72 | Chairperson | | EXHIBIT L | | --- | | CONSOLIDATED FOREIGN CURRENCY AMOUNTS | | AS OF MARCH 31,2024 AND DECEMBER 31, 2023 | | (Translation<br> of the Financial Statements originally issued in Spanish – See Note 44) | | (Figures<br> stated in thousands of pesos in constant currency) | | | 03/31/2024 | | | | | | | | | | 12/31/2023 | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | Total<br> per currency | | | | | | | | | | | Item | Total parent<br><br> company and<br><br> local branches | | US dollar | | Euro | | Real | | Other | | Total | | | Assets | | | | | | | | | | | | | | Cash and deposits in banks | | 992,393,932 | | 970,633,576 | | 18,255,440 | | 200,641 | | 3,304,275 | | 1,698,725,006 | | Debt securities at fair value through profit or loss (1) | | 122,005,832 | | 122,005,832 | | | | | | | | 2,634,252,639 | | Other financial assets | | 104,394,131 | | 99,135,771 | | 54,148 | | | | 5,204,212 | | 120,056,592 | | Loans and other financing | | 507,160,475 | | 504,352,399 | | 225,816 | | | | 2,582,260 | | 272,891,130 | | From the non-financial<br> private sector and foreign residents | | 507,160,475 | | 504,352,399 | | 225,816 | | | | 2,582,260 | | 272,891,130 | | Other debt securities | | 63,578,404 | | 63,578,404 | | | | | | | | 134,407,010 | | Financial assets delivered as guarantee | | 24,429,236 | | 24,373,665 | | 55,571 | | | | | | 84,550,054 | | Equity Instruments at fair value through profit or loss | | 371,778 | | 371,778 | | | | | | | | 521,591 | | Total assets | | 1,814,333,788 | | 1,784,451,425 | | 18,590,975 | | 200,641 | | 11,090,747 | | 4,945,404,022 | | Liabilities | | | | | | | | | | | | | | Deposits | | 1,112,352,691 | | 1,112,329,026 | | 23,665 | | | | | | 1,551,798,130 | | Non-financial government sector | | 20,913,252 | | 20,913,252 | | | | | | | | 52,057,160 | | Financial sector | | 7,536,284 | | 7,536,284 | | | | | | | | 10,774,296 | | Non-financial private sector and foreign<br> residents | | 1,083,903,155 | | 1,083,879,490 | | 23,665 | | | | | | 1,488,966,674 | | Liabilities at fair value through profit or loss | | 14,203,500 | | 14,203,500 | | | | | | | | 20,950,673 | | Derivative instruments | | 5,127,009 | | 5,127,009 | | | | | | | | | | Other financial liabilities | | 146,918,112 | | 144,218,411 | | 2,240,629 | | | | 459,072 | | 130,959,149 | | Financing from<br> the BCRA and other financial institutions | | 18,828,672 | | 15,898,929 | | 347,483 | | | | 2,582,260 | | 23,309,769 | | Issued corporate bonds | | 58,645,291 | | 58,645,291 | | | | | | | | 81,650,013 | | Subordinated corporate bonds | | 353,562,657 | | 353,562,657 | | | | | | | | 497,665,193 | | Other non-financial liabilities | | 4,239,697 | | 4,239,697 | | | | | | | | 6,863,209 | | Total liabilities | | 1,713,877,629 | | 1,708,224,520 | | 2,611,777 | | | | 3,041,332 | | 2,313,196,136 | | (1) | Mainly including Argentine government discount bonds in dual currency<br> for 15,024,563 and Argentine government Treasury bonds tied to the US dollar for 3,067,315. | | --- | --- |
| | Jorge Pablo Brito |
| --- | --- | | 73 | Chairperson | | EXHIBIT Q | | --- | | CONSOLIDATED BREAKDOWN OF STATEMENT OF INCOME | | FOR THE THREE MONTH PERIODS ENDED MARCH 31, 2024 AND 2023 | | (Translation<br> of the Financial Statements originally issued in Spanish – See Note 44) | | (Figures<br> stated in thousands of pesos in constant currency) | | | Net financial<br> Income / (Loss) | | | | | | | --- | --- | --- | --- | --- | --- | --- | | | Mandatory<br> measurement | | | | | | | Item | Quarter<br> ended<br><br> 03/31/2024 | | | Quarter<br> ended<br><br> 03/31/2023 | | | | For measurement of financial assets at fair value through<br> profit or loss | | | | | | | | Gain from government securities | | 1,279,205,460 | | | 50,066,629 | | | Gain from private securities | | 6,579,049 | | | (11,848,619 | ) | | Gain from derivative financial<br> instruments Forward transactions | | 5,165,322 | | | 754,331 | | | Gain / (loss) from other financial assets | | 3,165,288 | | | 65,775 | | | Gain from equity instruments at fair value through profit<br> or loss | | 435,066 | | | 197,394 | | | Gain from sales or decreases of financial assets at fair value<br> (1) | | (14,504,187 | ) | | (1,954,215 | ) | | For measurement of financial liabilities at fair value through<br> profit or loss | | | | | | | | Loss from derivative financial instruments Options | | (7,607,761 | ) | | (1,617,179 | ) | | Total | | 1,272,438,237 | | | 35,664,116 | | | (1) | Net amount of reclassifications to profit<br> of instruments classified at fair value through other comprehensive income that were derecognized<br> or charged during the period. | | --- | --- |
| | Jorge Pablo Brito |
| --- | --- | | 74 | Chairperson | | EXHIBIT Q | | --- | | (continued) | | CONSOLIDATED BREAKDOWN OF STATEMENT OF INCOME | | FOR THE THREE MONTH PERIODS ENDED MARCH 31, 2024 AND 2023 | | (Translation<br> of the Financial Statements originally issued in Spanish – See Note 44) | | (Figures<br> stated in thousands of pesos in constant currency) | | | Net financial<br> Income / (Loss) | | | | | | | --- | --- | --- | --- | --- | --- | --- | | Interest and adjustment for the application of the effective interest rate of financial assets and financial liabilities measured at amortized cost | Quarter<br> ended<br><br> 03/31/2024 | | | Quarter<br> ended<br><br> 03/31/2023 | | | | Interest income | | | | | | | | for cash and bank deposits | | 3,134,723 | | | 2,134,741 | | | for government securities | | 29,086,502 | | | 431,531,876 | | | for private securities | | 1,049,607 | | | 381,421 | | | for loans and other financing | | | | | | | | Non-financial public<br> sector | | 1,666,183 | | | 1,501,473 | | | Financial sector | | 1,027,390 | | | 412,896 | | | Non-financial private<br> sector | | | | | | | | Overdrafts | | 71,365,004 | | | 36,221,746 | | | Documents | | 56,909,484 | | | 35,222,511 | | | Mortgage loans | | 108,751,110 | | | 42,681,516 | | | Pledge loans | | 3,142,762 | | | 3,110,065 | | | Personal loans | | 69,749,155 | | | 100,643,359 | | | Credit cards | | 64,916,578 | | | 70,542,157 | | | Financial leases | | 3,509,792 | | | 446,939 | | | Other | | 83,614,201 | | | 43,314,588 | | | for repo transactions | | | | | | | | Central Bank of Argentina | | 151,841,815 | | | 26,036,407 | | | Other financial institutions | | 64,547 | | | 62,407 | | | Total | | 649,828,853 | | | 794,244,102 | | | Interest expense | | | | | | | | for Deposits | | | | | | | | Non-financial private<br> sector | | | | | | | | Checking accounts | | (64,109,013 | ) | | (22,924,336 | ) | | Saving accounts | | (13,087,739 | ) | | (4,969,041 | ) | | Time deposits and investments accounts | | (449,934,586 | ) | | (467,689,883 | ) | | Other | | (25 | ) | | | | | for financing received from the BCRA and other financial institutions | | (2,137,158 | ) | | (823,757 | ) | | for repo transactions | | | | | | | | Other financial institutions | | (4,109,022 | ) | | (4,810,625 | ) | | for other financial liabilities | | (3,090,680 | ) | | (1,446,332 | ) | | for issued corporate bonds | | (4,746,191 | ) | | (62,347 | ) | | for other subordinated corporate bonds | | (6,034,948 | ) | | (5,211,035 | ) | | Total | | (547,249,362 | ) | | (507,937,356 | ) |
| | Jorge Pablo Brito |
| --- | --- | | 75 | Chairperson | | EXHIBIT Q | | --- | | (continued) | | CONSOLIDATED BREAKDOWN OF STATEMENT OF INCOME | | FOR THE THREE MONTH PERIODS ENDED MARCH 31, 2024 AND 2023 | | (Translation<br> of the Financial Statements originally issued in Spanish – See Note 44) | | (Figures<br> stated in thousands of pesos in constant currency) | | Interest and adjustment for the application of the effective interest rate of financial assets measured at fair value through other comprehensive income | Income for the period | | Other comprehensive income | | Income for the period | | Other comprehensive income | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | Quarter ended 03/31/2024 | | Quarter ended 03/31/2024 | | Quarter ended 03/31/2023 | | Quarter ended 03/31/2023 | | | | for debt government securities | | 64,935,342 | | 6,996,632 | | 92,494,148 | | (7,293,993 | ) | | Total | | 64,935,342 | | 6,996,632 | | 92,494,148 | | (7,293,993 | ) | | | Income<br> of the period | | | | | | | --- | --- | --- | --- | --- | --- | --- | | Item | Quarter<br> ended<br><br> 03/31/2024 | | | Quarter<br> ended<br><br> 03/31/2023 | | | | Commissions income | | | | | | | | Commissions related to obligations | | 43,327,627 | | | 53,108,149 | | | Commissions related to credits | | 1,018,685 | | | 381,610 | | | Commissions related to loans commitments<br> and financial guarantees | | 1,325,421 | | | 6,982 | | | Commissions related to securities value | | 2,936,020 | | | 2,231,729 | | | Commissions for credit cards | | 27,839,847 | | | 31,345,632 | | | Commissions for insurances | | 3,629,499 | | | 5,078,375 | | | Commissions related to trading and foreign<br> exchange transactions | | 4,113,415 | | | 2,070,270 | | | Total | | 84,190,514 | | | 94,222,747 | | | Commissions expense | | | | | | | | Commissions related to trading with debt<br> securities | | (213,538 | ) | | (118,280 | ) | | Commissions related to trading and foreign<br> exchange transactions | | (944,475 | ) | | (400,596 | ) | | Other | | | | | | | | Commissions paid ATM exchange | | (5,378,135 | ) | | (5,546,474 | ) | | Checkbooks commissions and clearing<br> houses | | (1,742,546 | ) | | (1,843,311 | ) | | Credit cards and foreign trade commissions | | (1,851,103 | ) | | (859,100 | ) | | Total | | (10,129,797 | ) | | (8,767,761 | ) |
| | Jorge Pablo Brito |
| --- | --- | | 76 | Chairperson | | EXHIBIT R | | --- | | VALUE ADJUSTMENT FOR CREDIT LOSSES - CONSOLIDATED ALLOWANCES FOR UNCOLLECTIBILITY RISK | | AS OF MARCH 31, 2024 | | (Translation<br> of the Financial Statements originally issued in Spanish – See Note 44) | | (Figures<br> stated in thousands of pesos in constant currency) | | | | | Movements<br> between stages of the period | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | ECL<br> of remaining life of <br><br> financial asset | | | | | | | | | | | | Item | Balances at beginning of the fiscal year | | ECL of the next 12 months | | | Financial<br><br> instruments <br><br> with a<br><br> significant <br><br> increase in <br><br> credit risk | | | Financial<br><br> instruments<br><br> with a <br><br> significant<br><br> increase in <br><br> credit risk | | | Monetary effect generated by allowances | | | 03/31/2024 | | | Other financial<br> assets | | 902,568 | | (126,151 | ) | | | | | | | | (294,521 | ) | | 481,896 | | Loans and other financing | | 81,341,779 | | 7,434,993 | | | 14,386,433 | | | (4,514,653 | ) | | (29,445,933 | ) | | 69,202,619 | | Other<br> financial institutions | | 35,216 | | (1,749 | ) | | 27 | | | | | | (11,816 | ) | | 21,678 | | To the<br> non-financial private sector and foreign residents | | | | | | | | | | | | | | | | | | Overdrafts | | 10,922,241 | | 1,201,877 | | | 339,224 | | | (425,531 | ) | | (3,831,565 | ) | | 8,206,246 | | Documents | | 4,948,144 | | 1,572,741 | | | 127,821 | | | (20,903 | ) | | (1,854,697 | ) | | 4,773,106 | | Mortgage<br> loans | | 7,417,213 | | 332,651 | | | 753,409 | | | 450,402 | | | (2,680,832 | ) | | 6,272,843 | | Pledge<br> loans | | 530,287 | | 74,880 | | | (15,828 | ) | | 16,358 | | | (188,178 | ) | | 417,519 | | Personal<br> loans | | 15,185,750 | | 627,717 | | | 1,123,417 | | | 1,300,686 | | | (5,479,141 | ) | | 12,758,429 | | Credit<br> cards | | 16,210,388 | | 339,222 | | | 2,339,418 | | | 2,174,142 | | | (6,010,302 | ) | | 15,052,868 | | Financial<br> leases | | 162,044 | | 5,255 | | | 11,283 | | | 41 | | | (56,848 | ) | | 121,775 | | Other | | 25,930,496 | | 3,282,399 | | | 9,707,662 | | | (8,009,848 | ) | | (9,332,554 | ) | | 21,578,155 | | Eventual commitments | | 3,195,005 | | 402,041 | | | 237,621 | | | 245 | | | (1,152,563 | ) | | 2,682,349 | | Other debt securities | | 18,211 | | 17,432 | | | | | | | | | (7,965 | ) | | 27,678 | | Total of allowances | | 85,457,563 | | 7,728,315 | | | 14,624,054 | | | (4,514,408 | ) | | (30,900,982 | ) | | 72,394,542 | | VALUE ADJUSTMENT FOR CREDIT LOSSES - CONSOLIDATED ALLOWANCES FOR UNCOLLECTIBILITY RISK | | --- | | AS OF DECEMBER 31, 2023 | | (Translation<br> of the Financial Statements originally issued in Spanish – See Note 44) | | (Figures<br> stated in thousands of pesos in constant currency) | | | | | Movements<br> between stages for the fiscal year | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | ECL of<br> remaining life of<br><br> financial asset | | | | | | | | | | Item | Balances at beginning of the fiscalyear | | ECL of<br> the<br><br> next 12 months | | **** | Financial instruments with a significant increase in credit risk | | Financial instruments with impairment | | Monetary effect generated by allowances | | **** | 12/31/2023 | | | Other financial assets | | 429,859 | | 995,370 | | | | | | | (522,661 | ) | | 902,568 | | Loans and other financing | | 51,948,880 | | 28,166,978 | | | 19,400,980 | | 45,800,615 | | (63,975,674 | ) | | 81,341,779 | | Other financial institutions | | 38,439 | | 50,620 | | | | | | | (53,843 | ) | | 35,216 | | To the non-financial private sector<br> and foreign residents | | | | | | | | | | | | | | | | Overdrafts | | 2,487,671 | | 3,275,279 | | | 6,248,293 | | 3,806,841 | | (4,895,843 | ) | | 10,922,241 | | Documents | | 2,673,259 | | 3,491,367 | | | 1,654,036 | | 1,294,466 | | (4,164,984 | ) | | 4,948,144 | | Mortgage loans | | 5,637,220 | | (168,338 | ) | | 1,615,941 | | 6,173,273 | | (5,840,883 | ) | | 7,417,213 | | Pledge loans | | 895,403 | | (36,389 | ) | | 371,277 | | 40,025 | | (740,029 | ) | | 530,287 | | Personal loans | | 19,583,710 | | 8,471,349 | | | 967,558 | | 6,027,560 | | (19,864,427 | ) | | 15,185,750 | | Credit cards | | 13,058,990 | | 9,031,126 | | | 2,712,385 | | 8,233,821 | | (16,825,934 | ) | | 16,210,388 | | Financial leases | | 102,157 | | 108,429 | | | 42,518 | | 20,575 | | (111,635 | ) | | 162,044 | | Other | | 7,472,031 | | 3,943,535 | | | 5,788,972 | | 20,204,054 | | (11,478,096 | ) | | 25,930,496 | | Eventual commitments | | 3,289,869 | | 2,850,810 | | | 149,281 | | 814 | | (3,095,769 | ) | | 3,195,005 | | Other debt securities | | 3,755 | | 25,186 | | | | | 262 | | (10,992 | ) | | 18,211 | | Total of allowances | | 55,672,363 | | 32,038,344 | | | 19,550,261 | | 45,801,691 | | (67,605,096 | ) | | 85,457,563 |
| | Jorge Pablo Brito |
| --- | --- | | 77 | Chairperson | | CONDENSED SEPARATE INTERIM STATEMENT OF FINANCIAL POSITION | | --- | | AS OF MARCH 31, 2024 AND DECEMBER 31, 2023 | | (Translation<br> of the Financial Statements originally issued in Spanish – See Note 41) | | (Figures<br> stated in thousands of pesos in constant currency) | | Items | Notes | | Exhibits | 03/31/2024 | | 12/31/2023 | | --- | --- | --- | --- | --- | --- | --- | | ASSETS | | | | | | | | Cash and deposits in banks | | 8 | | | 878,300,066 | 1,428,625,988 | | Cash | | | | | 306,830,816 | 539,275,203 | | Central Bank of Argentina | | | | | 274,295,727 | 515,509,854 | | Other local and foreign entities | | | | | 296,679,330 | 373,755,966 | | Other | | | | | 494,193 | 84,965 | | Debt securities at fair value through profit or loss | | 8 | A | | 3,909,575,258 | 2,345,991,270 | | Derivative financial instruments | | 8 | | | 42,279,672 | 136,769 | | Repo transactions | | 8 | | | 218,319,703 | 799,820,555 | | Other financial assets | | 5,<br> 7 and 8 | R | | 99,642,911 | 139,053,183 | | Loans and other financing | | 6,<br> 7 and 8 | B, C, D and R | | 2,130,332,976 | 2,319,119,101 | | Non-financial public sector | | | | | 2,816,898 | 7,151,377 | | Other financial entities | | | | | 29,295,452 | 8,682,795 | | Non-financial private sector and foreign<br> residents | | | | | 2,098,220,626 | 2,303,284,929 | | Other debt securities | | 7<br> and 8 | A and R | | 404,237,992 | 545,940,484 | | Financial assets delivered as guarantee | | 8<br> and 29 | | | 119,209,640 | 149,665,110 | | Equity instruments at fair value through profit or loss | | 8 | A | | 2,701,008 | 3,973,684 | | Investments in subsidiaries, associates and joint arrangements | | 10 | | | 463,386,189 | 466,341,904 | | Property, plant and equipment | | | F | | 487,412,533 | 484,993,662 | | Intangible assets | | | G | | 85,009,779 | 86,282,050 | | Other non-financial assets | | 11 | | | 51,561,461 | 65,295,871 | | Non-current assets held for sale | | | | | 36,966,066 | 36,966,067 | | TOTAL ASSETS | | | | | 8,928,935,254 | 8,872,205,698 |
| | Jorge Pablo Brito |
| --- | --- | | 78 | Chairperson | | CONDENSED SEPARATE INTERIM STATEMENT OF FINANCIAL POSITION | | --- | | AS OF MARCH 31, 2024 AND DECEMBER 31, 2023 | | (Translation<br> of the Financial Statements originally issued in Spanish – See Note 41) | | (Figures<br> stated in thousands of pesos in constant currency) | | Items | Notes | | Exhibits | 03/31/2024 | | 12/31/2023 | | | --- | --- | --- | --- | --- | --- | --- | --- | | LIABILITIES | | | | | | | | | Deposits | | 8<br> and 13 | H and I | | 4,308,084,818 | | 4,183,504,490 | | Non-financial public sector | | | | | 517,538,659 | | 282,727,782 | | Financial sector | | | | | 8,330,258 | | 11,254,151 | | Non-financial private sector and foreign<br> residents | | | | | 3,782,215,901 | | 3,889,522,557 | | Derivative financial instruments | | 8 | I | | 148,703 | | 113,930 | | Repo transactions | | 8 | I | | 20,856,886 | | 35,784,780 | | Other financial liabilities | | 8<br> and 15 | I | | 298,470,069 | | 390,435,332 | | Financing received from the BCRA and other financial<br> institutions | | 8 | I | | 10,756,481 | | 11,475,939 | | Issued corporate bonds | | 8<br> and 35 | I | | 60,842,410 | | 86,062,071 | | Current income tax liabilities | | 19 | | | 291,589,818 | | 282,541,233 | | Subordinated corporate bonds | | 8<br> and 35 | I | | 354,537,635 | | 499,037,547 | | Provisions | | 15 | J and R | | 8,752,197 | | 8,902,791 | | Deferred income tax liabilities | | | | | 48,439,388 | | 60,592,678 | | Other non-financial liabilities | | 16 | | | 166,343,418 | | 214,354,831 | | TOTAL LIABILITIES | | | | | 5,568,821,823 | | 5,772,805,622 | | SHAREHOLDERS’ EQUITY | | | | | | | | | Capital stock | | 27 | K | | 639,413 | | 639,413 | | Non-capital contributions | | | | | 12,429,781 | | 12,429,781 | | Capital adjustments | | | | | 866,848,912 | | 866,848,912 | | Earnings reserved | | | | | 1,267,024,498 | | 1,267,024,498 | | Unappropriated retained earnings | | | | | 891,406,193 | | 924,592 | | Accumulated other comprehensive income | | | | | 46,344,907 | | 61,051,279 | | Net income of the period / fiscal year | | | | | 275,419,727 | | 890,481,601 | | TOTAL SHAREHOLDERS’ EQUITY | | | | | 3,360,113,431 | | 3,099,400,076 | | TOTAL SHAREHOLDERS’ EQUITY AND LIABILITIES | | | | | 8,928,935,254 | | 8,872,205,698 |
Notes 1 to 41 to the condensed separate interim Financial Statements and exhibits A to D, F to L, O, Q and R are an integral part of the condensed separate interim Financial Statements.
| | Jorge Pablo Brito |
| --- | --- | | 79 | Chairperson | | CONDENSED SEPARATE INTERIM STATEMENT OF INCOME | | --- | | FOR THE THREE MONTH PERIODS ENDED MARCH 31, 2024 AND 2023 | | (Translation<br> of the Financial Statements originally issued in Spanish – See Note 41) | | (Figures<br> stated in thousands of pesos in constant currency) | | Items | Notes | | Exhibits | Quarter<br> ended<br><br> 03/31/2024 | | | Quarter<br> ended<br><br> 03/31/2023 | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | Interest income | | | Q | | 612,726,321 | | | 884,761,681 | | | Interest expense | | | Q | | (473,630,169 | ) | | (506,643,368 | ) | | Net interest income | | | | | 139,096,152 | | | 378,118,313 | | | Commissions income | | 20 | Q | | 73,397,532 | | | 92,574,707 | | | Commissions expense | | | Q | | (5,813,042 | ) | | (7,131,204 | ) | | Net commissions income | | | | | 67,584,490 | | | 85,443,503 | | | Subtotal (Net interest income plus Net commissions income) | | | | | 206,680,642 | | | 463,561,816 | | | Net gain from measurement of financial instruments at fair<br> value through profit or loss | | | Q | | 1,148,644,610 | | | 21,141,926 | | | Profit from sold or derecognized assets at amortized cost | | | | | | | | 232 | | | Differences in quoted prices of gold and foreign currency | | 21 | | | 71,906,980 | | | 140,980,351 | | | Other operating income | | 22 | | | 25,448,117 | | | 16,012,729 | | | Credit loss expense on financial assets | | | | | (15,145,756 | ) | | (13,453,556 | ) | | Net operating income | | | | | 1,437,534,593 | | | 628,243,498 | | | Employee benefits | | 23 | | | (104,707,360 | ) | | (88,285,779 | ) | | Administrative expenses | | 24 | | | (54,443,446 | ) | | (43,341,341 | ) | | Depreciation and amortization of fixed assets | | | F and G | | (19,600,765 | ) | | (18,669,726 | ) | | Other operating expenses | | 25 | | | (122,742,814 | ) | | (90,140,143 | ) | | Operating income | | | | | 1,136,040,208 | | | 387,806,509 | | | Income from subsidiaries, associates and joint arrangements | | 10 | | | 6,931,379 | | | 4,826,293 | | | Loss on net monetary position | | | | | (780,334,603 | ) | | (336,115,091 | ) | | Income before tax on continuing operations | | | | | 362,636,984 | | | 56,517,711 | | | Income tax on continuing operations | | 19.b) | | | (87,217,257 | ) | | (18,649,171 | ) | | Net income from continuing operations | | | | | 275,419,727 | | | 37,868,540 | | | Net income of the period | | | | | 275,419,727 | | | 37,868,540 | |
| | Jorge Pablo Brito |
| --- | --- | | 80 | Chairperson | | SEPARATE EARNINGS PER SHARE | | --- | | FOR THE THREE MONTH PERIODS ENDED MARCH 31, 2024 AND 2023 | | (Translation<br> of the Financial Statements originally issued in Spanish – See Note 41) | | (Figures<br> stated in thousands of pesos in constant currency) | | Items | Quarter<br> ended<br><br> 03/31/2024 | | Quarter<br> ended<br><br> 03/31/2023 | | | --- | --- | --- | --- | --- | | Net profit attributable to parent’s<br> shareholders | | 275,419,727 | | 37,868,540 | | Plus: Potential dilutive effect inherent to common shares | | | | | | Net profit attributable to parent’s shareholders<br> adjusted for dilution | | 275,419,727 | | 37,868,540 | | Weighted average of outstanding common shares of the period | | 639,413 | | 639,413 | | Plus: Weighted average of additional common shares with dilutive<br> effects | | | | | | Weighted average of outstanding common shares of the period adjusted for<br> dilution | | 639,413 | | 639,413 | | Basic earnings per share (in pesos) | | 430.7384 | | 59.2239 |
| | Jorge Pablo Brito |
| --- | --- | | 81 | Chairperson | | CONDENSED SEPARATE INTERIM STATEMENT OF OTHER COMPREHENSIVE INCOME | | --- | | FOR THE THREE MONTH PERIODS ENDED MARCH 31, 2024 AND 2023 | | (Translation<br> of the Financial Statements originally issued in Spanish – See Note 41) | | (Figures<br> stated in thousands of pesos in constant currency) | | Items | Notes | | Exhibits | | Quarter<br> ended<br><br> 03/31/2024 | | | Quarter<br> ended <br><br>03/31/2023 | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | Net income of the period | | | | | | 275,419,727 | | | 37,868,540 | | | Items of Other Comprehensive Income that<br> will be reclassified to profit or loss | | | | | | | | | | | | Foreign currency translation differences<br> from Financial Statements conversion | | | | | | (14,063,350 | ) | | (822,130 | ) | | Foreign currency translation differences<br> of the period | | | | | | (14,063,350 | ) | | (822,130 | ) | | Profit or loss from financial instruments<br> measured at fair value through other comprehensive income (FVOCI) (IFRS 9(4.1.2)(a)) | | | | | | (5,507,050 | ) | | (2,542,980 | ) | | Profit or loss of the period from financial<br> instruments at fair value through other comprehensive income (FVOCI) | | | | Q | | 622,844 | | | (7,434,816 | ) | | Adjustment for reclassification of the<br> period | | | | | | (9,095,229 | ) | | 3,522,537 | | | Income tax | | 19.b) | | | | 2,965,335 | | | 1,369,299 | | | Interest in other comprehensive<br> income of associates and joint ventures accounted for using the participation method | | | | | | 4,864,028 | | | 140,823 | | | Income of the period from interest in<br> other comprehensive income of subsidiaries, associates and joint ventures accounted for using the participation method | | | | | | 4,864,028 | | | 140,823 | | | Total other comprehensive loss that<br> will be reclassified to profit or loss | | | | | | (14,706,372 | ) | | (3,224,287 | ) | | Total other<br> comprehensive loss | | | | | | (14,706,372 | ) | | (3,224,287 | ) | | Total comprehensive<br> income of the period | | | | | | 260,713,355 | | | 34,644,253 | |
Notes 1 to 41 to the condensed separate interim Financial Statements and exhibits A to D, F to L, O, Q and R are an integral part of the condensed separate interim Financial Statements.
| | Jorge Pablo Brito |
| --- | --- | | 82 | Chairperson | | CONDESED SEPARATE INTERIM STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY | | --- | | FOR THE THREE MONTH PERIOD ENDED MARCH 31, 2024 | | (Translation<br> of the Financial Statements originally issued in Spanish – See Note 41) | | (Figures<br> stated in thousands of pesos in constant currency) | | | | Capital<br><br><br> stock | | Non-capital<br><br> contributions | | | | Other<br> Comprehensive<br><br> Income | | | | | | Earnings<br> Reserved | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | Changes | Notes | Outstanding<br><br> shares | | Additional<br><br> paid-in capital | | Capital adjustments | | Accumulated<br><br> foreign<br><br> currency<br><br> translation<br><br> difference<br><br> from<br><br> Financial<br><br> Statements<br><br> conversion | | | Other | | | Legal | | Other | | Unappropriated retained earnings | | Total Equity | | | | Restated amount at<br> the beginning of the fiscal year | | | 639,413 | | 12,429,781 | | 866,848,912 | | 16,921,591 | | | 44,129,688 | | | 519,629,920 | | 747,394,578 | | 891,406,193 | | 3,099,400,076 | | | Total comprehensive income of<br> the period | | | | | | | | | | | | | | | | | | | | | | | | - Net income of the period | | | | | | | | | | | | | | | | | | | 275,419,727 | | 275,419,727 | | | - Other<br> comprehensive loss of the period | | | | | | | | | (14,063,350 | ) | | (643,022 | ) | | | | | | | | (14,706,372 | ) | | Amount at the end of the<br> period | | | 639,413 | | 12,429,781 | | 866,848,912 | | 2,858,241 | | | 43,486,666 | | | 519,629,920 | | 747,394,578 | | 1,166,825,920 | | 3,360,113,431 | | | CONDENSED SEPARATE INTERIM STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY | | --- | | FOR THE THREE MONTH PERIOD ENDED MARCH 31, 2023 | | (Translation<br> of the Financial Statements originally issued in Spanish – See Note 41) | | (Figures<br> stated in thousands of pesos in constant currency) | | | | Capital<br><br><br> stock | | Non-capital<br><br><br> contributions | | | | Other<br> Comprehensive<br><br> Income | | | | | | Earnings<br> Reserved | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | Changes | Notes | Outstanding shares | | Additional paid-in capital | | Capital adjustments | | Accumulated foreign currency translation difference from Financial Statements conversion | | **** | Other | | **** | Legal | | Other | | Unappropriated retained earnings | | Total Equity | | **** | | Restated amount at<br> the beginning of the period | | | 639,413 | | 12,429,781 | | 866,848,912 | | 2,125,031 | | | (1,976,834 | ) | | 478,987,599 | | 856,497,096 | | 203,856,604 | | 2,419,407,602 | | | Total comprehensive income of<br> the period | | | | | | | | | | | | | | | | | | | | | | | | - Net income of the period | | | | | | | | | | | | | | | | | | | 37,868,540 | | 37,868,540 | | | - Other comprehensive loss<br> of the period | | | | | | | | | (822,130 | ) | | (2,402,157 | ) | | | | | | | | (3,224,287 | ) | | Amount at the end of the<br> period | | | 639,413 | | 12,429,781 | | 866,848,912 | | 1,302,901 | | | (4,378,991 | ) | | 478,987,599 | | 856,497,096 | | 241,725,144 | | 2,454,051,855 | |
Notes 1 to 41 to the condensed separate interim Financial Statements and exhibits A to D, F to L. O, Q and R are an integral part of the condensed separate interim Financial Statements.
| | Jorge Pablo Brito |
| --- | --- | | 83 | Chairperson | | CONDENSED SEPARATE INTERIM STATEMENT OF CASH FLOWS | | --- | | FOR THE THREE MONTH PERIODS ENDED MARCH 31, 2024 AND 2023 | | (Translation<br> of the Financial Statements originally issued in Spanish – See Note 41) | | (Figures<br> stated in thousands of pesos in constant currency) | | Items | Notes | 03/31/2024 | | | 03/31/2023 | | | | --- | --- | --- | --- | --- | --- | --- | --- | | Cash flows from operating activities | | | | | | | | | Income of the period before income tax | | | 362,636,984 | | | 56,517,711 | | | Adjustment for the total monetary effect of the period | | | 780,334,603 | | | 336,115,091 | | | Adjustments to obtain cash flows from operating activities: | | | | | | | | | Amortization and depreciation | | | 19,600,765 | | | 18,669,726 | | | Credit loss expense on financial assets | | | 15,145,756 | | | 13,453,556 | | | Difference in quoted prices of foreign currency | | | (31,384,428 | ) | | (94,196,150 | ) | | Other adjustments | | | (586,426,851 | ) | | 249,220,100 | | | Net increase / (decrease) from operating assets: | | | | | | | | | Debt securities at fair value through profit or loss | | | (1,562,962,182 | ) | | (110,952,029 | ) | | Derivative financial instruments | | | (42,142,903 | ) | | 200,790 | | | Repo transactions | | | 581,500,852 | | | 140,679,974 | | | Loans and other financing | | | | | | | | | Non-financial public sector | | | 4,334,479 | | | 4,951,886 | | | Other financial entities | | | (20,612,657 | ) | | (2,823,822 | ) | | Non-financial private sector and foreign<br> residents | | | 189,918,547 | | | 106,146,839 | | | Other debt securities | | | 141,702,492 | | | 516,698,449 | | | Financial assets delivered as guarantee | | | 30,455,470 | | | (665,056 | ) | | Equity instruments at fair value through profit or loss | | | 1,272,676 | | | (191,563 | ) | | Other assets | | | 56,095,468 | | | (5,430,328 | ) | | Net increase / (decrease) from operating liabilities: | | | | | | | | | Deposits | | | | | | | | | Non-financial public sector | | | 234,810,877 | | | (88,385,881 | ) | | Financial sector | | | (2,923,893 | ) | | (395,106 | ) | | Non-financial private sector and foreign<br> residents | | | (107,306,656 | ) | | (355,901,383 | ) | | Derivative financial instruments | | | 34,773 | | | 378,219 | | | Repo transactions | | | (14,927,894 | ) | | 17,401,532 | | | Other liabilities | | | (138,282,854 | ) | | (101,947,408 | ) | | Income tax payments | | | (1,011,392 | ) | | (11,830,824 | ) | | Total cash from operating activities (A) | | | (90,137,968 | ) | | 687,714,323 | |
| | Jorge Pablo Brito |
| --- | --- | | 84 | Chairperson | | CONDENSED SEPARATE INTERIM STATEMENT OF CASH FLOWS | | --- | | FOR THE THREE MONTH PERIODS ENDED MARCH 31, 2024 AND 2023 | | (Translation of the Financial Statements originally issued in Spanish – See Note 41) | | (Figures stated in thousands of pesos in constant currency) | | Items | Notes | 03/31/2024 | | | 03/31/2023 | | | | --- | --- | --- | --- | --- | --- | --- | --- | | Cash flows from investing activities | | | | | | | | | Payments: | | | | | | | | | Acquisition of PPE, intangible assets and other assets | | | (17,305,571 | ) | | (19,443,743 | ) | | Total cash used in investing activities (B) | | | (17,305,571 | ) | | (19,443,743 | ) | | Cash flows from financing activities | | | | | | | | | Payments: | | | | | | | | | Non-subordinated corporate bonds | | | (57,064 | ) | | (48,683 | ) | | Other payments related to financing activities | | | (1,477,011 | ) | | (1,611,949 | ) | | Collections / Incomes: | | | | | | | | | Financing from local financial entities | | | 2,464,429 | | | 6,249,741 | | | Total cash used in financing activities (C) | | | 930,354 | | | 4,589,109 | | | Effect of exchange rate fluctuations (D) | | | 58,727,945 | | | 153,728,359 | | | Monetary effect on cash and cash equivalents (E) | | | (501,918,876 | ) | | (667,522,053 | ) | | Net (decrease) / increase in cash and cash equivalents (A+B+C+D+E) | | | (549,704,116 | ) | | 159,065,995 | | | Cash and cash equivalents at the beginning of the fiscal year | 32 | | 1,428,625,988 | | | 3,454,026,368 | | | Cash and cash equivalents at the end of the period | 32 | | 878,921,872 | | | 3,613,092,363 | |
Notes 1 to 41 to the condensed separate interim Financial Statements and exhibits A to D, F to L, O, Q and R are an integral part of the condensed separate interim Financial Statements.
| 85 | Jorge Pablo Brito <br> Chairperson |
| --- | --- |
NOTES TO THE CONDENSED SEPARATE INTERIM FINANCIALSTATEMENTS
AS OF MARCH 31, 2024
(Translation of Financial Statements originally issued in Spanish – See Note 41)
(Figures stated in thousands of pesos in constant currency)
| 1. | CORPORATE INFORMATION |
|---|
Banco Macro SA (hereinafter, the “Bank”) is a business corporation (sociedad anónima) organized in the 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, the Bank performs certain transactions through its subsidiaries Macro Bank Limited (a company organized under the laws of Bahamas), Macro Securities SAU, Macro Fiducia SAU, Macro Fondos SGFCISA, Argenpay SAU and Fintech SGR.
Macro Compañía Financiera SA was created in 1977 as a non-banking financial institution. In May 1988, it received the authorization to operate as a commercial bank and was incorporated as Banco Macro SA. Subsequently, as a result of the merger process with other entities, it adopted other names (among them, Banco Macro Bansud SA) and since August 2006, Banco Macro SA.
The Bank’s shares are publicly listed on Bolsas y Mercados Argentinos (BYMA) since November 1994 and as from March 24, 2006, they are listed on the New York Stock Exchange (NYSE). Additionally, on October 15, 2015 they were authorized to be listed on the Mercado Abierto Electrónico SA (MAE).
Since 1994, Banco Macro SA’s market strategy has mainly focused on the regional areas outside the Autonomous City of Buenos Aires (CABA, for its acronym in Spanish). Following this strategy, in 1996, Banco Macro SA started the process to acquire entities and assets and liabilities during the privatization of provincial and other banks.
In 2001, 2004, 2006 and 2010, the Bank acquired the control of Banco Bansud SA, Nuevo Banco Suquía SA, Nuevo Banco Bisel SA and Banco Privado de Inversiones SA, respectively. Such entities merged with and into Banco Macro SA in December 2003, October 2007, August 2009 and December 2013, respectively. During the fiscal year 2006, the Bank acquired control over Banco del Tucumán SA, which was merged with Banco Macro SA in October 2019. Additionally, on October 1, 2021, the Bank acquired the control of Fintech SGR that, as explained in Note 3 to the consolidated Financial Statements as of December 31, 2023, already issued, this is a structured entity in which the Bank has control.
During 2023, 2022, 2021 and 2020 the Bank in conjunction with other entities of the argentine financial system made contributions in the company Play Digital SA for a total amount of 977,225 (not restated), reaching an equity interest of 9.1886%. See also Note 1 to the condensed consolidated interim Financial Statements.
On May 18, 2023, Banco Macro SA acquired 100% of Macro Agro SAU (formerly known as Comercio Interior SAU) capital stock at USD 5,218,800 payable with the proceeds of this company’s dividends. The main purpose of this company is grain brokerage. For further information see also Note 9.
Additionally, on November 2, 2023, the Board of Directors of the Central Bank of Argentina (BCRA, for its acronym in Spanish), authorized the acquisition by Banco Macro SA of 100% of the capital stock of Banco Itaú Argentina SA, Itaú Asset Management SA and Itaú Valores SA. For further information see also Note 1 to the condensed consolidated interim Financial Statements.
On May 22, 2024, the 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 Municipal governments.
| 86 |
| --- |
NOTES TO THE CONDENSED SEPARATE INTERIM FINANCIALSTATEMENTS
AS OF MARCH 31, 2024
(Translation of Financial Statements originally issued in Spanish – See Note 41)
(Figures stated in thousands of pesos in constant currency)
| 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 in accordance with the accounting framework established by the BCRA, in its Communiqué “A” 6114 as supplemented. Except for the exceptions established by the BCRA, which are explained in the following paragraph, such framework is based on International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB) and adopted by the Argentine Federation of Professionals Councils in Economic Sciences (FACPCE, for its acronym in Spanish). The abovementioned international standards include the IFRS, the International Accounting Standards (IAS) and the interpretations developed by the IFRS Interpretations Committee (IFRIC) or former IFRIC (SIC).
The transitory exceptions and regulatory guidelines established by BCRA to the application of effective IFRS, that affect the preparation of these condensed separate interim Financial Statements are as follows:
| a) | According to Communiqué “A” 6114, as supplemented, and in the convergence process through<br>IFRS, the BCRA established that since fiscal years beginning on or after January 1, 2020, financial institutions defined as “Group<br>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 public<br>sector established by BCRA Communiqué “A” 6847. As of the date of issuance of these condensed separate interim Financial<br>Statements, the Bank is in the process of quantifying the effect of the full application of the abovementioned standard. |
|---|---|
| b) | Through Communiqué “A 7014 dated May 14, 2020, the BCRA established for financial institutions<br>that received debt securities of the public sector in a swap transaction, they must be initially recognized at their carrying amount as<br>of the date of the swap transaction, without assessing if they qualify or not for derecognition under IFRS 9 standards and as a consequence,<br>do not eventually recognize the new instruments at the market value as provided by such IFRS (see Note 9 to the condensed consolidated<br>interim Financial Statements). |
| --- | --- |
If IFRS 9 had applied, and according an estimation calculated by the Bank, the Statement of income of the period ended March 31, 2024, would have recorded a decrease in “Other operating income” for an amount of 2,012,244. On the other hand, an increase in “Loss on net monetary position” for an amount of 1,554,435 and a decrease in “Net gain from measurement of financial instruments at fair value through profit or loss” for an amount of 215,304, and as a counterpart an increase in “Other comprehensive income” for that period. In addition, it would have been recorded in the Statement of income of the period ended March 31, 2023 a decrease in “Other operating income” for an amount of 4,654,240. On the other hand, a decrease in “Loss on net monetary position” for an amount of 1,407,955 and an increase in “Net gain from measurement of financial instruments at fair value through profit or loss” for an amount of 6,429,045, and as a counterpart an increase in “Other comprehensive income” for that period. These changes would not have resulted into modifications to the total shareholder equity as of that date nor the total comprehensive income of the three-month periods ended March 31, 2024 and 2023.
Applicable Accounting Policies
Except for what was mentioned in the previous paragraphs, the accounting policies applied by the Bank comply with the IFRS as currently approved and are applicable to the preparation of these condensed separate interim Financial Statements in accordance with the IFRS as adopted by the BCRA through Communiqué “A” 7899. Generally, the BCRA does not allow the anticipated application of any IFRS, unless otherwise expressly stated.
Note 3 to the consolidated Financial Statements as of December 31, 2023, already issued presents further detailed descriptions of the basis for the presentation of such Financial Statements and the main accounting policies used and the relevant information of the subsidiaries. All that is explained therein shall apply to these condensed separate interim Financial Statements, except for the goodwill generated by the business combination, as mentioned in Note 9, which according to BCRA Communiqué “A” 6618, in the condensed separate interim Financial Statements, is included in the net investment of the subsidiary.
| 87 |
| --- |
NOTES TO THE CONDENSED SEPARATE INTERIM FINANCIALSTATEMENTS
AS OF MARCH 31, 2024
(Translation of Financial Statements originally issued in Spanish – See Note 41)
(Figures stated in thousands of pesos in constant currency)
Going concern
The Bank’s Management has made an assessment of its ability to continue as a going concern and is satisfied that it has the resources to continue in business for the foreseeable future. Furthermore, management is not aware of any material uncertainties that may cast significant doubt on the Bank’s ability to continue as a going concern. Therefore, these condensed separate interim Financial Statements continue to be prepared on the going concern basis.
Subsidiaries
As mentioned in Note 1, the Bank performs certain transactions through its subsidiaries.
Subsidiaries are all the entities controlled by the Bank. An entity controls another entity when it is exposed, or has rights, to variable returns from its continuing involvement with such other entity and has the ability to use its power to direct the operating and financing policies of such other entity, to affect the amounts of such returns.
As provided under IAS 27 “Consolidated and Separate Financial Statements”, investments in subsidiaries were accounted for using the “equity method”, established in IAS 28 “Investments in associates and joint ventures”. When using this method, investments are initially recognized at cost, and such amount increases or decreases to recognize investor’s interest in profit and loss of the entity after the date of acquisition or creation.
Shares in profit and loss of subsidiaries and associates are recognized under “Income / (loss) from subsidiaries, associates and joint ventures” in the condensed separate interim statement of income. Ownership interest in other comprehensive income of subsidiaries is accounted for under “Income / (loss) of the period from interest in other comprehensive income of subsidiaries, associates and joint ventures accounted for using the participation method”, in the condensed separate interim statement of other comprehensive income.
Transcription into books
As of the date of issuance of these condensed separate interim Financial Statements, they are in the process of being transcribed into the Financial Statements book (“Libro Balance”) of Banco Macro SA.
New standards adopted
New standards adopted are described in Note 3 to the condensed consolidated interim Financial Statements.
New pronouncements
New pronouncements are described in Note 3 to the condensed consolidated interim Financial Statements.
| 4. | CONTINGENT TRANSACTIONS |
|---|
In order to meet specific financial needs of customers, the Bank’s credit policy also includes, among others, the granting of guarantees, securities, bonds, letters of credit and documentary credits. The Bank is also exposed to overdrafts and unused agreed credits on credit cards of the Bank. Since they imply a contingent obligation for the Bank, they expose the Bank to credit risks other than those recognized in the Statement of financial position and, therefore, they are an integral part of the total risk of the Bank.
As of March 31, 2024 and December 31, 2023, the Bank maintains the following maximum exposures to credit risk related to this type of transactions:
| Composition | 03/31/2024 | 12/31/2023 | ||||
|---|---|---|---|---|---|---|
| Undrawn commitments of credit cards and checking accounts | 1,537,520,296 | 1,806,755,101 | ||||
| Guarantees granted (1) | 68,606,753 | 104,530,087 | ||||
| Overdraft and unused agreed commitments (1) | 7,846,548 | 11,899,054 | ||||
| Subtotal | 1,613,973,597 | 1,923,184,242 | ||||
| Less: Allowance for ECL | (1,898,500 | ) | (2,075,697 | ) | ||
| Total | 1,612,075,097 | 1,921,108,545 |
| 88 |
| --- |
NOTES TO THE CONDENSED SEPARATE INTERIM FINANCIALSTATEMENTS
AS OF MARCH 31, 2024
(Translation of Financial Statements originally issued in Spanish – See Note 41)
(Figures stated in thousands of pesos in constant currency)
| (1) | Includes transactions not covered by BCRA debtor classification standard. The Guarantees granted include<br>an amount of 1,113,326 and 991,299, as of March 31, 2024 and December 31, 2023, respectively. The Overdraft and unused agreed<br>commitments include an amount of 12,409 and 17,740, as of March 31, 2024 and December 31, 2023, respectively. |
|---|
Risks related to the abovementioned contingent transactions have been assessed and are controlled within the framework of the Bank’s credit risk policy, as described in Note 45 to the consolidated Financial Statements as of December 31, 2023, already issued.
| 5. | OTHER FINANCIAL ASSETS |
|---|
The composition of the other financial assets as of March 31, 2024 and December 31, 2023 is as follows:
| Composition | 03/31/2024 | 12/31/2023 | ||||
|---|---|---|---|---|---|---|
| Sundry debtors | 98,027,030 | 136,816,341 | ||||
| Receivables from spot sales of government securities pending settlement | 703,963 | |||||
| Receivables from spot sales of foreign currency pending settlement | 435,897 | 1,993,009 | ||||
| Private securities | 207,604 | 96,130 | ||||
| Other | 609,093 | 804,216 | ||||
| Subtotal | 99,983,587 | 139,709,696 | ||||
| Less: Allowances for ECL | (340,676 | ) | (656,513 | ) | ||
| Total | 99,642,911 | 139,053,183 |
Disclosures related to allowance for ECL are detailed in Note 7 “Loss allowance for expected credit losses on credit exposures not measured at fair value through profit or loss”.
| 6. | LOANS AND OTHER FINANCING |
|---|
The composition of loans and other financing as of March 31, 2024 and December 31, 2023 is as follows:
| Composition | 03/31/2024 | 12/31/2023 | ||||
|---|---|---|---|---|---|---|
| Non-financial public sector (1) | 2,816,898 | 7,151,377 | ||||
| Other financial entities | 29,295,452 | 8,682,795 | ||||
| Other financial entities | 29,316,586 | 8,716,584 | ||||
| Less: allowance for ECL | (21,134 | ) | (33,789 | ) | ||
| Non-financial private sector and foreign residents | 2,098,220,626 | 2,303,284,929 | ||||
| Overdrafts | 225,098,413 | 260,688,035 | ||||
| Documents | 468,392,856 | 481,828,727 | ||||
| Mortgage loans | 230,651,603 | 239,622,112 | ||||
| Pledge loans | 32,927,653 | 42,647,211 | ||||
| Personal loans | 302,877,045 | 343,321,647 | ||||
| Credit cards | 553,947,672 | 675,749,731 | ||||
| Financial leases | 1,329,269 | 2,161,652 | ||||
| Other | 331,351,166 | 311,889,710 | ||||
| Less: allowance for ECL | (48,355,051 | ) | (54,623,896 | ) | ||
| Total | 2,130,332,976 | 2,319,119,101 | ||||
| (1) | As explained in Note 3, ECL is not calculated to public sector exposures. | |||||
| --- | --- |
| 89 |
| --- |
NOTES TO THE CONDENSED SEPARATE INTERIM FINANCIALSTATEMENTS
AS OF MARCH 31, 2024
(Translation of Financial Statements originally issued in Spanish – See Note 41)
(Figures stated in thousands of pesos in constant currency)
| 7. | LOSS ALLOWANCE FOR EXPECTED CREDIT LOSSES ON CREDIT EXPOSURES NOT MEASURED AT FAIR VALUE THROUGH PROFITOR 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 8 discloses financial assets measured at fair value on a recurring basis and financial assets not recognized at fair value. This classification is made pursuant to the expressed in Note 3 “Basis for the preparation of these Financial Statements and applicable accounting standards”. Additionally, Note 8 explains the information related to the valuation process.
Moreover, considering the temporary exclusion established by BCRA mentioned in Note 3 “Applicable accounting standards” the Bank applies the impairment requirements for the recognition and measurement of a loss allowance for financial assets measured at amortized cost or at fair value through other comprehensive income, except for public sector exposures. In addition, the Bank applies the impairment requirements for guarantees granted, undrawn commitments of credit cards and checking accounts, letter of credits, which are not recognized in the condensed consolidated interim statement of financial position.
For the purpose of assessing the Bank’s credit risk exposure and identifying material credit risk concentration, disclosures regarding credit risk of financial assets and items not recognized in the statement of financial position are as follows.
| 7.1 | Loans and other financing measured at amortized cost |
|---|
According to the nature of the information to be disclosed and the loan characteristics, the Bank groups them as follows:
| Composition | 03/31/2024 | 12/31/2023 | ||||
|---|---|---|---|---|---|---|
| Loans and other financing | 2,178,709,161 | 2,373,776,786 | ||||
| Individual assessment | 686,063,986 | 592,322,792 | ||||
| Collective assessment | 1,492,645,175 | 1,781,453,994 | ||||
| Less: Allowance for ECL (1) | (48,376,185 | ) | (54,657,685 | ) | ||
| Total | 2,130,332,976 | 2,319,119,101 | ||||
| (1) | As explained in Note 3, ECL is not calculated to public sector exposures. | |||||
| --- | --- |
As explained in Note 45.1.3 to the consolidated Financial Statements as of December 31, 2023, already issued, “Additional Forward-looking allowances based on expert credit judgment”, section “Adjustment for expectations of increased risk due to the change in economic policy”, the Bank resolved to carry out an adjustment with a prospective vision as a consequence of estimating an incremental effect in the forecasts determined by ECL for the purposes of covering a scenario of uncertainty regarding the impacts that could originate from the change in the economic policy regime, the implementation of a program to adjust imbalances macroeconomics and an inflation stabilization plan. As of March 31, 2024 and December 31, 2023, said adjustment was estimated at 10,089,134 and 16,645,255, respectively, as explained in the section "Adjustment for uncertainty about conditions of accessing loans to MIPYMES" of the aforementioned note.
The following table shows the credit quality and the carrying amount of credit risk, based on the Bank’s credit risk rating system, the probability of default (PD) and the year-end stage classification, taking into account what was mentioned in the previous paragraph. The amounts are presented gross of the impairment allowances.
| 90 |
| --- |
NOTES TO THE CONDENSED SEPARATE INTERIM FINANCIALSTATEMENTS
AS OF MARCH 31, 2024
(Translation of Financial Statements originally issued in Spanish – See Note 41)
(Figures stated in thousands of pesos in constant currency)
| 03/31/2024 | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Internal rating<br><br> grade | Range PD | Stage 1 | Stage 2 | Stage 3 | Total | % | |||||
| Performing | 2,033,425,183 | 67,501,567 | 2,100,926,750 | 96.43 | |||||||
| High grade | 0.00% - 3.50% | 1,892,667,555 | 20,343,646 | 1,913,011,201 | 87.80 | ||||||
| Standard grade | 3.51% - 7.00% | 90,900,867 | 12,983,883 | 103,884,750 | 4.77 | ||||||
| Sub-standard grade | 7.01% - 33.00% | 49,856,761 | 34,174,038 | 84,030,799 | 3.86 | ||||||
| Past due but not impaired (1) | 33.01% - 99.99% | 17,720,462 | 38,081,095 | 55,801,557 | 2.56 | ||||||
| Impaired | 100% | 21,980,854 | 21,980,854 | 1.01 | |||||||
| Total | 2,051,145,645 | 105,582,662 | 21,980,854 | 2,178,709,161 | 100 | ||||||
| % | 94.14 | 4.85 | 1.01 | 100 | |||||||
| 12/31/2023 | |||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Internal rating <br><br>grade | Range PD | Stage 1 | Stage 2 | Stage 3 | Total | % | |||||
| Performing | 2,230,449,586 | 72,366,862 | 2,302,816,448 | 97.01 | |||||||
| High grade | 0.00% - 3.50% | 2,077,080,083 | 26,257,674 | 2,103,337,757 | 88.61 | ||||||
| Standard grade | 3.51% - 7.00% | 101,649,460 | 16,305,773 | 117,955,233 | 4.97 | ||||||
| Sub-standard grade | 7.01% - 33.00% | 51,720,043 | 29,803,415 | 81,523,458 | 3.43 | ||||||
| Past due but not impaired (1) | 33.01% - 99.99% | 14,491,312 | 30,913,862 | 45,405,174 | 1.91 | ||||||
| Impaired | 100% | 25,555,164 | 25,555,164 | 1.08 | |||||||
| Total | 2,244,940,898 | 103,280,724 | 25,555,164 | 2,373,776,786 | 100 | ||||||
| % | 94.57 | 4.35 | 1.08 | 100 | |||||||
| (1) | It also includes transactions which are more than 5 days past due independently of the PD range assigned. | ||||||||||
| --- | --- | ||||||||||
| 7.1.1 | Loans on an individual assessment | ||||||||||
| --- | --- |
The table below shows the credit quality and the debt balance to credit risk of commercial loans by grade of credit risk classification, based on the Bank’s internal credit rating system, PD range and classification by stages at the date of the reporting period. The Bank’s internal credit rating systems and the evaluation and measurement approaches are explained in Note 45 section “Credit risk” to the consolidated Financial Statements as of December 31, 2023, already issued.
| 03/31/2024 | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Internal rating<br><br> grade | Range PD | Stage 1 | Stage 2 | Stage 3 | Total | % | |||||
| Performing | 672,982,511 | 7,882,920 | 680,865,431 | 99.24 | |||||||
| High grade | 0.00% - 3.50% | 622,506,360 | 4,528,404 | 627,034,764 | 91.39 | ||||||
| Standard grade | 3.51% - 7.00% | 26,756,884 | 60,503 | 26,817,387 | 3.91 | ||||||
| Sub-standard grade | 7.01% - 33.00% | 23,719,267 | 3,294,013 | 27,013,280 | 3.94 | ||||||
| Past due but not impaired | 33.01% - 99.99% | ||||||||||
| Impaired | 100% | 5,198,555 | 5,198,555 | 0.76 | |||||||
| Total | 672,982,511 | 7,882,920 | 5,198,555 | 686,063,986 | 100 | ||||||
| % | 98.09 | 1.15 | 0.76 | 100 |
| 91 |
| --- |
NOTES TO THE CONDENSED SEPARATE INTERIM FINANCIALSTATEMENTS
AS OF MARCH 31, 2024
(Translation of Financial Statements originally issued in Spanish – See Note 41)
(Figures stated in thousands of pesos in constant currency)
| 12/31/2023 | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Internal rating<br><br> grade | Range PD | Stage 1 | Stage 2 | Stage 3 | Total | % | |||||
| Performing | 573,821,922 | 10,755,511 | 584,577,433 | 98.69 | |||||||
| High grade | 0.00% - 3.50% | 519,228,060 | 6,475,226 | 525,703,286 | 88.75 | ||||||
| Standard grade | 3.51% - 7.00% | 31,120,908 | 31,120,908 | 5.25 | |||||||
| Sub-standard grade | 7.01% - 33.00% | 23,472,954 | 4,280,285 | 27,753,239 | 4.69 | ||||||
| Past due but not impaired | 33.01% - 99.99% | ||||||||||
| Impaired | 100% | 7,745,359 | 7,745,359 | 1.31 | |||||||
| Total | 573,821,922 | 10,755,511 | 7,745,359 | 592,322,792 | 100 | ||||||
| % | 96.87 | 1.82 | 1.31 | 100 | |||||||
| 7.1.2 | Loans on a collective assessment | ||||||||||
| --- | --- |
The table below shows the credit quality and the debt balance to credit risk of loans portfolio under collective assessment, by grade of credit risk classification based on the Bank’s internal credit rating system, PD range and classification by stages at the date of the reporting period. The Bank’s internal credit rating systems and the evaluation and measurement approaches are explained in Note 45 section “Credit risk” to the consolidated Financial Statements as of December 31, 2023, already issued.
| 03/31/2024 | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Internal rating<br><br> grade | Range PD | Stage 1 | Stage 2 | Stage 3 | Total | % | |||||
| Performing | 1,360,442,672 | 59,618,647 | 1,420,061,319 | 95.14 | |||||||
| High grade | 0.00% - 3.50% | 1,270,161,195 | 15,815,242 | 1,285,976,437 | 86.16 | ||||||
| Standard grade | 3.51% - 7.00% | 64,143,983 | 12,923,380 | 77,067,363 | 5.16 | ||||||
| Sub-standard grade | 7.01% - 33.00% | 26,137,494 | 30,880,025 | 57,017,519 | 3.82 | ||||||
| Past due but not impaired (1) | 33.01% - 99.99% | 17,720,462 | 38,081,095 | 55,801,557 | 3.74 | ||||||
| Impaired | 100% | 16,782,299 | 16,782,299 | 1.12 | |||||||
| Total | 1,378,163,134 | 97,699,742 | 16,782,299 | 1,492,645,175 | 100 | ||||||
| % | 92.33 | 6.55 | 1.12 | 100 | |||||||
| 12/31/2023 | |||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Internal rating<br><br> grade | Range PD | Stage 1 | Stage 2 | Stage 3 | Total | % | |||||
| Performing | 1,656,627,664 | 61,611,351 | 1,718,239,015 | 96.45 | |||||||
| High grade | 0.00% - 3.50% | 1,557,852,023 | 19,782,448 | 1,577,634,471 | 88.56 | ||||||
| Standard grade | 3.51% - 7.00% | 70,528,552 | 16,305,773 | 86,834,325 | 4.87 | ||||||
| Sub-standard grade | 7.01% - 33.00% | 28,247,089 | 25,523,130 | 53,770,219 | 3.02 | ||||||
| Past due but not impaired (1) | 33.01% - 99.99% | 14,491,312 | 30,913,862 | 45,405,174 | 2.55 | ||||||
| Impaired | 100% | 17,809,805 | 17,809,805 | 1.00 | |||||||
| Total | 1,671,118,976 | 92,525,213 | 17,809,805 | 1,781,453,994 | 100 | ||||||
| % | 93.81 | 5.19 | 1.00 | 100 | |||||||
| (1) | It also includes transactions which are more than 5 days past due independently of the PD range assigned. | ||||||||||
| --- | --- |
| 92 |
| --- |
NOTES TO THE CONDENSED SEPARATE INTERIM FINANCIALSTATEMENTS
AS OF MARCH 31, 2024
(Translation of Financial Statements originally issued in Spanish – See Note 41)
(Figures stated in thousands of pesos in constant currency)
| 7.2 | Other debt securities at amortized cost |
|---|
The criterion used to calculate ECL of Financial Trusts and Corporate Bonds is based on the rating granted by risk rating agencies to each debt security type making up the financial trusts or each corporate bond series, respectively. This means that the factor to be used will vary depending on the debt securities holdings (A or B). The EAD is assumed to be equal to the outstanding balance.
The table below shows the exposures gross of impairment allowances by stage:
| 03/31/2024 | ||||||||
|---|---|---|---|---|---|---|---|---|
| Composition | Stage 1 | Stage 2 | Stage 3 | Total | % | |||
| Corporate bonds | 9,927,657 | 9,927,657 | 92.31 | |||||
| Financial trusts | 826,469 | 826,469 | 7.69 | |||||
| Total | 10,754,126 | 10,754,126 | 100 | |||||
| % | 100 | 100 | ||||||
| 12/31/2023 | ||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Composition | Stage 1 | Stage 2 | Stage 3 | Total | % | |||
| Corporate bonds | 14,412,193 | 14,412,193 | 93.46 | |||||
| Financial trusts | 1,008,496 | 1,008,496 | 6.54 | |||||
| Total | 15,420,689 | 15,420,689 | 100 | |||||
| % | 100 | 100 |
The related ECL for Corporate Bonds as of March 31, 2024 and December 31, 2023 amounted to 24,099 and 12,686, respectively. The ECL related to financial trusts as of March 31, 2024 and December 31, 2023 amounted to 433 and 211, respectively.
| 7.3 | Government securities at amortized cost or fair value through OCI |
|---|
This group includes local government securities, provincial securities or BCRA instruments measured at amortized cost or fair value through OCI. For these assets, an individual assessment of the related parameters is performed. However, under domestic standards and according to Communiqué “A” 6847, no ECL is calculated for these instruments.
A breakdown of these investments and their characteristics is disclosed in Exhibit A.
| 7.4 | Other financial assets |
|---|
The table below shows the exposures gross of impairment allowances by stage:
| 03/31/2024 | ||||||||
|---|---|---|---|---|---|---|---|---|
| Composition | Stage 1 | Stage 2 | Stage 3 | Total | % | |||
| Other financial assets | 99,775,983 | 99,775,983 | 100 | |||||
| Total | 99,775,983 | 99,775,983 | 100 | |||||
| % | 100 | 100 |
| 93 |
| --- |
NOTES TO THE CONDENSED SEPARATE INTERIM FINANCIALSTATEMENTS
AS OF MARCH 31, 2024
(Translation of Financial Statements originally issued in Spanish – See Note 41)
(Figures stated in thousands of pesos in constant currency)
| 12/31/2023 | ||||||||
|---|---|---|---|---|---|---|---|---|
| Composition | Stage 1 | Stage 2 | Stage 3 | Total | % | |||
| Other financial assets | 139,613,566 | 139,613,566 | 100 | |||||
| Total | 139,613,566 | 139,613,566 | 100 | |||||
| % | 100 | 100 |
The ECL related to these types of instruments amounted to 340,676 and 656,513 as of March 31, 2024 and December 31, 2023, respectively.
Exhibit R “Value correction for losses – Allowances for bad debt risk” also shows the evolution of the forecasts for expected credit losses at the sector and product level.
| 7.5 | Loans commitment |
|---|
The table below shows the exposures gross of impairment allowances by stage:
| 03/31/2024 | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Composition | Stage 1 | Stage 2 | Stage 3 | Total | % | |||||
| Undrawn commitments of credit cards and checking accounts | 1,519,628,494 | 17,888,879 | 2.923 | 1,537,520,296 | 95.33 | |||||
| Guarantees granted | 67,086,240 | 407,187 | 67,493,427 | 4.18 | ||||||
| Overdraft and unused agreed commitments | 7,834,139 | 7,834,139 | 0.49 | |||||||
| Total | 1,594,548,873 | 18,296,066 | 2.923 | 1,612,847,862 | 100 | |||||
| % | 98.87 | 1.13 | 100 | |||||||
| 12/31/2023 | ||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Composition | Stage 1 | Stage 2 | Stage 3 | Total | % | |||||
| Undrawn commitments of credit cards and checking accounts | 1,794,234,291 | 12,517,118 | 3,692 | 1,806,755,101 | 93.99 | |||||
| Guarantees granted | 103,538,788 | 103,538,788 | 5.39 | |||||||
| Overdraft and unused agreed commitments | 11,881,314 | 11,881,314 | 0.62 | |||||||
| Total | 1,909,654,393 | 12,517,118 | 3,692 | 1,922,175,203 | 100 | |||||
| % | 99.35 | 0.65 | 100 |
The related ECL for undrawn commitments of credit cards and checking accounts as of March 31, 2024 and December 31, 2023 amounted to 1,463,304 and 1,493,351, respectively. The ECL related to guarantees granted as of March 31, 2024 and December 31, 2023 amounted to 430,477 and 517,390, respectively. The ECL related to overdraft and unused agreed commitments as of March 31, 2024 and December 31, 2023 amounted to 4,719 and 64,956, respectively.
In exhibit R “Value adjustment for credit losses – Allowance for uncollectibility risk”, the ECL movements by portfolio and products are also disclosed.
| 94 |
| --- |
NOTES TO THE CONDENSED SEPARATE INTERIM FINANCIALSTATEMENTS
AS OF MARCH 31, 2024
(Translation of Financial Statements originally issued in Spanish – See Note 41)
(Figures stated in thousands of pesos in constant currency)
| 8. | FAIR VALUE QUANTITATIVE AND QUALITATIVE DISCLOSURES |
|---|
Note 10 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 measurement<br>day for identical assets or liabilities. The Bank considers markets as active only if there are sufficient trading activities with respect<br>to the volume and liquidity of the identical assets or liabilities and when there are binding and exercisable price quotes available at<br>each period or fiscal year, as applicable. |
|---|---|
| - | Level 2: Valuation techniques for which the data and variables having a significant impact on the determination<br>of the fair value recognized or disclosed are observable for the asset or liability, either directly or indirectly. Such inputs include<br>quoted prices for similar assets or liabilities in active markets, quoted prices for identical instruments in inactive markets and observable<br>inputs other than quoted prices, such as interest rates and yield curves, implied volatilities, and credit spreads. In addition, adjustments<br>to level 2 inputs may be required for the condition or location of the asset or the extent to which it relates to items that are comparable<br>to the valued instrument. However, if such adjustments are based on unobservable inputs that are significant to the entire measurement,<br>the Bank will classify the instruments as Level 3. |
| --- | --- |
| - | Level 3: Valuation techniques for which the data and variables having a significant impact on the determination<br>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 March 31, 2024 and December 31, 2023:
| Financial assets and financial liabilities measured at fair value on a recurring basis as of March 31, 2024 | ||||||||
|---|---|---|---|---|---|---|---|---|
| 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 | 3,909,575,258 | 388,303,998 | 3,521,261,624 | 9,636 | ||||
| Derivatives financial instruments (1) | 42,279,672 | 82,263 | 42,197,409 | |||||
| Other financial assets | 207,604 | 207,604 | ||||||
| Financial assets delivered as guarantee | 27,207,398 | 27,207,398 | ||||||
| Investments in equity instruments | 2,701,008 | 642,316 | 2,058,692 | |||||
| At fair value through OCI | ||||||||
| Other debt securities | 243,148,336 | 243,148,336 | ||||||
| Total | 4,225,119,276 | 659,384,311 | 3,563,459,033 | 2,275,932 | ||||
| Financial liabilities | ||||||||
| At fair value through profit or loss | ||||||||
| Derivatives financial instruments | 148,703 | 26,511 | 122,192 | |||||
| Total | 148,703 | 26,511 | 122,192 | |||||
| (1) | Includes the premium corresponding to the subscription of put options. | |||||||
| --- | --- |
95
NOTES TO THE CONDENSED SEPARATE INTERIM FINANCIALSTATEMENTS
AS OF MARCH 31, 2024
(Translation of Financial Statements originally issued in Spanish – See Note 41)
(Figures stated in thousands of pesos in constant currency)
| Financial assets and financial liabilities measured at fair value on a recurring basis as of December 31, 2023 | ||||||||
|---|---|---|---|---|---|---|---|---|
| Description | Total | Level 1 | Level 2 | Level 3 | ||||
| Financial assets | ||||||||
| At fair value through profit or loss | ||||||||
| Debt securities at fair value through profit or loss | 2,345,991,270 | 2,332,079,632 | 13,901,000 | 10,638 | ||||
| Derivatives financial instruments | 136,769 | 995 | 135,774 | |||||
| Other financial assets | 96,130 | 96,130 | ||||||
| Financial assets delivered as guarantee | 38,252,478 | 38,252,478 | ||||||
| Investments in equity instruments | 3,973,684 | 854,653 | 3,119,031 | |||||
| At fair value through OCI | ||||||||
| Other debt securities | 334,742,642 | 334,742,642 | ||||||
| Total | 2,723,192,973 | 2,705,930,400 | 14,036,774 | 3,225,799 | ||||
| Financial liabilities | ||||||||
| At fair value through profit or loss | ||||||||
| Derivatives financial instruments | 113,930 | 61,240 | 52,690 | |||||
| Total | 113,930 | 61,240 | 52,690 |
Below is the reconciliation between the amounts at the beginning and the end of the fiscal year for the financial assets recognized at fair value, categorized as level 3:
| As of March 31, 2024 | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| Reconciliation | Debt<br><br> instruments | Other financial<br><br> assets | Equity<br><br> instruments at<br><br> fair value through<br><br> profit or loss | ||||||
| Amount at the beginning | 10,638 | 96,130 | 3,119,031 | ||||||
| Transfers to level 3 | |||||||||
| Transfers from level 3 | |||||||||
| Profit and loss | 41,043 | 165,079 | 1,786 | ||||||
| Recognition and derecognition | (2,760 | ) | 18,222 | ||||||
| Monetary effects | (39,285 | ) | (71,827 | ) | (1,062,125 | ) | |||
| Amount at the end of the period | 9,636 | 207,604 | 2,058,692 | ||||||
| As of December 31, 2023 | |||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Reconciliation | Debt<br><br> instruments | Other financial<br><br> assets | Equity<br><br> instruments at<br><br> fair value through <br><br>profit or loss | ||||||
| Amount at the beginning | 4,872,074 | 233,319 | 3,234,230 | ||||||
| Transfers to level 3 | |||||||||
| Transfers from level 3 (1) | (213,223 | ) | |||||||
| Profit and loss | 3,535,732 | 56,497 | 3,411,737 | ||||||
| Recognition and derecognition | (5,238,962 | ) | |||||||
| Monetary effects | (3,158,206 | ) | (193,686 | ) | (3,313,713 | ) | |||
| Amount at the end of the fiscal year | 10,638 | 96,130 | 3,119,031 | ||||||
| (1) | Transfer of equity instruments at fair value through profit or loss from level 3 to level 1 that were<br>measured using quoted prices observable in active markets as of December 31, 2023. | ||||||||
| --- | --- |
96
NOTES TO THE CONDENSED SEPARATE INTERIM FINANCIALSTATEMENTS
AS OF MARCH 31, 2024
(Translation of Financial Statements originally issued in Spanish – See Note 41)
(Figures stated in thousands of pesos in constant currency)
Note 10 to the condensed consolidated interim Financial Statements, details the valuation techniques and significant unobservable inputs used in the valuation of assets at Level 3.
Changes in fair value levels
The Bank monitors the availability of information in the market to evaluate the classification of financial instruments into the fair value hierarchy as well as the resulting determination of transfers between levels 1, 2 and 3 at each period end.
Except for the foregoing, as of March 31, 2024 and December 31, 2023, the Bank has not recognized any transfers between levels 1, 2 and 3.
Financial assets and liabilities not measured at fair value
The following table shows a comparison between the fair value and the carrying amount of financial instruments not recognized at fair value as of March 31, 2024 and December 31, 2023:
| 03/31/2024 | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Composition | Carrying<br><br> amount | Level 1 | Level 2 | Level 3 | Fair value | |||||
| Financial assets | ||||||||||
| Cash and deposits in banks | 878,300,066 | 878,300,066 | 878,300,066 | |||||||
| Repo transactions | 218,319,703 | 218,319,703 | 218,319,703 | |||||||
| Other financial assets | 99,435,307 | 99,435,307 | 99,435,307 | |||||||
| Loans and other financing | 2,130,332,976 | 1,942,304,365 | 1,942,304,365 | |||||||
| Other debt securities | 161,089,656 | 204,814,029 | 3,262,571 | 208,076,600 | ||||||
| Financial assets delivered as guarantee | 92,002,242 | 92,002,242 | 92,002,242 | |||||||
| Total | 3,579,479,950 | 1,492,871,347 | 3,262,571 | 1,942,304,365 | 3,438,438,283 | |||||
| Financial liabilities | ||||||||||
| Deposits | 4,308,084,818 | 2,028,382,070 | 2,293,865,906 | 4,322,247,976 | ||||||
| Repo transactions | 20,856,886 | 20,856,886 | 20,856,886 | |||||||
| Other financial liabilities | 298,470,069 | 284,087,413 | 13,584,746 | 297,672,159 | ||||||
| Financing received from the BCRA and other financial institutions | 10,756,481 | 10,489,211 | 267,270 | 10,756,481 | ||||||
| Issued corporate bonds | 60,842,410 | 60,706,297 | 60,706,297 | |||||||
| Subordinated corporate bonds | 354,537,635 | 318,993,309 | 318,993,309 | |||||||
| Total | 5,053,548,299 | 2,343,815,580 | 393,551,622 | 2,293,865,906 | 5,031,233,108 | |||||
| 12/31/2023 | ||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Composition | Carrying<br><br> amount | Level 1 | Level 2 | Level 3 | Fair value | |||||
| Financial assets | ||||||||||
| Cash and deposits in banks | 1,428,625,988 | 1,428,625,988 | 1,428,625,988 | |||||||
| Repo transactions | 799,820,555 | 799,820,554 | 799,820,554 | |||||||
| Other financial assets | 138,957,053 | 138,957,053 | 138,957,053 | |||||||
| Loans and other financing | 2,319,119,101 | 2,256,557,116 | 2,256,557,116 | |||||||
| Other debt securities | 211,197,842 | 64,169,076 | 84,249,560 | 73,855,919 | 222,274,555 | |||||
| Financial assets delivered as guarantee | 111,412,632 | 111,412,631 | 111,412,631 | |||||||
| Total | 5,009,133,171 | 2,542,985,302 | 84,249,560 | 2,330,413,035 | 4,957,647,897 |
97
NOTES TO THE CONDENSED SEPARATE INTERIM FINANCIALSTATEMENTS
AS OF MARCH 31, 2024
(Translation of Financial Statements originally issued in Spanish – See Note 41)
(Figures stated in thousands of pesos in constant currency)
| 12/31/2023 | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Composition | Carrying amount | Level 1 | Level 2 | Level 3 | Fair value | |||||
| Financial liabilities | ||||||||||
| Deposits | 4,183,504,490 | 2,512,320,735 | 1,673,554,593 | 4,185,875,328 | ||||||
| Repo transactions | 35,784,780 | 35,784,780 | 35,784,780 | |||||||
| Other financial liabilities | 390,435,332 | 373,764,091 | 15,916,957 | 389,681,048 | ||||||
| Financing received from the BCRA and other financial institutions | 11,475,939 | 11,141,241 | 334,699 | 11,475,940 | ||||||
| Issued corporate bonds | 86,062,071 | 87,293,559 | 87,293,559 | |||||||
| Subordinated corporate bonds | 499,037,547 | 422,482,506 | 422,482,506 | |||||||
| Total | 5,206,300,159 | 2,933,010,847 | 526,027,721 | 1,673,554,593 | 5,132,593,161 | |||||
| 9. | BUSINESS COMBINATIONS | |||||||||
| --- | --- | |||||||||
| 9.1 | Macro Agro SAU (formerly known as Comercio Interior SAU) | |||||||||
| --- | --- |
On May 18, 2023, the Bank acquired from Inversora Juramento SA, 100% of the capital stock and votes of Macro Agro SAU (formerly known as Comercio Interior SAU). Detailed information on this transaction is included in Note 11.1 to the condensed consolidated interim Financial Statements.
| 9.2 | Banco BMA SAU (formerly known as Banco Itaú Argentina SA) |
|---|
On August 23, 2023, Banco Macro SA entered into a stock purchase agreement with Itaú Unibanco Holding SA, through its affiliates Itaú Unibanco SA, Banco Itaú BBA SA and Itaú Consultoria de Valores Mobiliários e Participações SA (collectively, “Itaú”), pursuant to which, subject to certain conditions (substantially the approval of the transaction by the BCRA), the Bank would acquire from Itaú the shares representing 100% of the capital stock and votes of Banco Itaú Argentina SA, Itaú Asset Management SA and Itaú Valores SA.
On November 2, 2023, the Board of Directors of the BCRA authorized the abovementioned purchase. Detailed information on this transaction is included in Note 11.2 to the condensed consolidated interim Financial Statements.
| 10. | INVESTMENTS IN SUBSIDIARIES, ASSOCIATES AND JOINT ARRANGEMENTS |
|---|
The Bank’s interests in associates and joint ventures are disclosed in Note 12 to the condensed consolidated interim Financial Statements.
| 11. | OTHER NON-FINANCIAL ASSETS |
|---|
The composition of other non-financial assets as of March 31, 2024 and December 31, 2023 is as follows:
| Composition | 03/31/2024 | 12/31/2023 | ||
|---|---|---|---|---|
| Investment property (see Exhibit F) | 40,651,070 | 40,655,999 | ||
| Advanced prepayments | 9,382,506 | 7,575,562 | ||
| Tax advances | 1,272,587 | 16,948,383 | ||
| Other | 255,298 | 115,927 | ||
| Total | 51,561,461 | 65,295,871 |
98
NOTES TO THE CONDENSED SEPARATE INTERIM FINANCIALSTATEMENTS
AS OF MARCH 31, 2024
(Translation of Financial Statements originally issued in Spanish – See Note 41)
(Figures stated in thousands of pesos in constant currency)
| 12. | RELATED PARTIES |
|---|
A related party is a person or entity that is related to the Bank:
| - | has control or joint control of<br>the Bank; |
|---|---|
| - | has significant influence over<br>the Bank; |
| --- | --- |
| - | is a member of the key management<br>personnel of the Bank or of a 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 March 31, 2024 and December 31, 2023, amounts balances related to transactions generated with related parties are as follows:
| As<br> of March 31, 2024 | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Main<br> subsidiaries | |||||||||||
| Macro<br><br><br> Bank<br><br> Limited | Macro<br><br><br> Securities<br><br> SAU (1) | Argenpay<br><br><br> SAU | Fintech<br><br><br> SGR | Macro<br><br><br> Agro SAU<br><br> (formerly<br><br> known as<br><br> Comercio<br><br> Interior<br><br> SAU) | Banco<br><br><br> BMA SAU | Associates | Key<br><br><br> management<br><br> personnel<br><br> (2) | Other<br><br><br> related<br><br> parties | Total | ||
| Assets | |||||||||||
| Cash and deposits in banks | 6,870 | 6,870 | |||||||||
| Other financial assets | 7,557,567 | 7,557,567 | |||||||||
| Loans and other financing (3) | |||||||||||
| Other financial entities | 12,870,060 | 12,870,060 | |||||||||
| Documents | 420,520 | 420,520 | |||||||||
| Overdraft | 164 | 3,683 | 2,660,487 | 2,664,334 | |||||||
| Credit cards | 476,461 | 103,916 | 580,377 | ||||||||
| Lease | 24,651 | 48,086 | 72,737 | ||||||||
| Personal loans | 335 | 335 | |||||||||
| Mortgage loans | 2,019,220 | 2,019,220 | |||||||||
| Other loans (4) | 579,345 | 19,796,238 | 20,375,583 | ||||||||
| Guarantee<br> granted | 26,893,116 | 26,893,116 | |||||||||
| Total<br> assets | 6,870 | 7,557,567 | 24,815 | 12,870,060 | 3,079,044 | 49.922.363 | 73,460,719 |
99
NOTES TO THE CONDENSED SEPARATE INTERIM FINANCIALSTATEMENTS
AS OF MARCH 31, 2024
(Translation of Financial Statements originally issued in Spanish – See Note 41)
(Figures stated in thousands of pesos in constant currency)
| As of March 31, 2024 | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Main subsidiaries | ||||||||||
| Macro<br><br> Bank<br><br> Limited | Macro<br><br> Securities<br><br> SAU (1) | Argenpay<br><br> SAU | Fintech<br><br> SGR | Macro<br><br> Agro SAU<br><br> (formerly<br><br> known as<br><br> Comercio<br><br> Interior<br><br> SAU) | Banco<br><br> BMA SAU | Associates | Key<br><br> management<br><br> personnel<br><br> (2) | Other<br><br> related<br><br> parties | Total | |
| Liabilities | ||||||||||
| Deposits | 50,573,810 | 222,945 | 7,247 | 11,827 | 363,367 | 12,013,189 | 7,970,939 | 71,163,324 | ||
| Other financial liabilities | 3,678 | 10,052 | 13,730 | |||||||
| Issued corporate bonds | 2,175,000 | 2,175,000 | ||||||||
| Subordinated corporate bonds | 842,027 | 132,952 | 974,979 | |||||||
| Other non-financial liabilities | 2,450,680 | 2,450,680 | ||||||||
| Total liabilities | 52,748,810 | 222,945 | 849,274 | 144,779 | 363,367 | 12,016,867 | 10,431,671 | 76,777,713 | ||
| (1) | It includes the balance amounts from its subsidiary Macro Fondos SGFCISA. | |||||||||
| --- | --- | |||||||||
| (2) | Includes close family members of the key management personnel. | |||||||||
| --- | --- | |||||||||
| (3) | The maximum financing amount for Loans and other financing as of March 31, 2024 for Macro Securities<br>SAU, Macro Agro SAU (formerly known as Comercio Interior SAU), Banco BMA SAU, Key management personnel and Other related parties amounted<br>to 8,678,890, 36,658, 14,026,609, 3,988,693 and 62,141,538, respectively. | |||||||||
| --- | --- | |||||||||
| (4) | It is related to Loans and other financing not disclosed in other items, mainly Other loans, Financing<br>of foreign exchange transactions and Loans with government securities. | |||||||||
| --- | --- | |||||||||
| As of December 31, 2023 | ||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | |
| Main subsidiaries | ||||||||||
| Macro<br><br> Bank<br><br> Limited | Macro<br><br> Securities<br><br> SAU (1) | Argenpay<br><br> SAU | Fintech<br><br> SGR | Macro<br><br> Agro SAU<br><br> (formerly<br><br> known as<br><br> Comercio<br><br> Interior<br><br> SAU) | Associates | Key<br><br> management<br><br> personnel<br><br> (2) | Other<br><br> related<br><br> parties | Total | ||
| Assets | ||||||||||
| Cash and deposits in banks | 9,822 | 9,822 | ||||||||
| Other financial assets | 12,624,218 | 12,624,218 | ||||||||
| Loans and other financing (3) | ||||||||||
| Documents | 1,947,565 | 1,947,565 | ||||||||
| Overdraft | 382,413 | 4,036,320 | 4,418,733 | |||||||
| Credit cards | 739,512 | 195,363 | 934,875 | |||||||
| Lease | 46,966 | 78,240 | 125,206 | |||||||
| Personal loans | 6,990 | 6,990 | ||||||||
| Mortgage loans | 1,913,368 | 1,913,368 | ||||||||
| Other loans (4) | 526,313 | 7,212,384 | 7,738,697 | |||||||
| Guarantee granted | 39,963,568 | 39,963,568 | ||||||||
| Total assets | 9,822 | 12,624,218 | 46,966 | 3,568,596 | 53,433,440 | 69,683,042 | ||||
| Liabilities | ||||||||||
| Deposits | 23,933,528 | 392,024 | 37,422 | 16,936 | 461,417 | 7,596,989 | 22,643,909 | 55,082,225 | ||
| Other financial liabilities | 4,191 | 81,027 | 85,218 | |||||||
| Issued corporate bonds | 4,374,264 | 4,374,264 | ||||||||
| Subordinated corporate bonds | 1,185,215 | 187,139 | 1,372,354 | |||||||
| Other non-financial liabilities | 3,823,505 | 3,823,505 | ||||||||
| Total liabilities | 28,307,792 | 392,024 | 1,222,637 | 204,075 | 461,417 | 7,601,180 | 26,548,441 | 64,737,566 |
100
NOTES TO THE CONDENSED SEPARATE INTERIM FINANCIALSTATEMENTS
AS OF MARCH 31, 2024
(Translation of Financial Statements originally issued in Spanish – See Note 41)
(Figures stated in thousands of pesos in constant currency)
| (1) | It includes the balance amounts from its subsidiary Macro Fondos SGFCISA. |
|---|---|
| (2) | Includes close family members of the key management personnel. |
| --- | --- |
| (3) | The maximum financing amount for Loans and other financing as of December 31, 2023 for Macro Securities<br>SAU, Macro Agro SAU (formerly known as Comercio Interior SAU), Key management personnel and Other related parties amounted to 32,806,934,<br>103,864, 5,230,317 and 78,095,857, respectively. |
| --- | --- |
| (4) | It is related to Loans and other financing not disclosed in other items, mainly Other loans, Financing<br>of foreign exchange transactions and Loans with government securities. |
| --- | --- |
Profit or loss related to transactions generated during the three-month periods ended March 31, 2024 and 2023 with related parties are as follows:
| As of March 31, 2024 | ||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Main subsidiaries | ||||||||||||||||
| Macro<br><br> Bank<br><br> Limited | Macro<br><br> Securities<br><br> SAU (1) | Argenpay<br><br> SAU | Fintech<br><br> SGR | Macro<br><br> Agro SAU<br><br> (formerly<br><br> known as<br><br> Comercio<br><br> Interior<br><br> SAU) | Banco<br><br> BMA SAU | Associates | Key<br><br> management<br><br> personnel<br><br> (2) | Other<br><br> related<br><br> parties | Total | |||||||
| Income / (loss) | ||||||||||||||||
| Interest income | 58,218 | 5,126 | 159,037 | 1 | 1,000,637 | 2,043,367 | 3,266,386 | |||||||||
| Interest expense | (46,575 | ) | (24,968 | ) | (15,799 | ) | (646,982 | ) | (734,324 | ) | ||||||
| Commissions income | 27,157 | 1,939 | 173 | 237 | 27,478 | 56,984 | ||||||||||
| Commissions expense | (2,985 | ) | (87 | ) | (45,345 | ) | (48,417 | ) | ||||||||
| Other operating income | 1,482,493 | 2,392 | 755 | 4,731 | 1,490,371 | |||||||||||
| Administrative expense | (1,040,142 | ) | (1,040,142 | ) | ||||||||||||
| Other operating expense | (301,475 | ) | (301,475 | ) | ||||||||||||
| Total income / (loss) | 85,375 | 1,481,447 | 7,518 | 112,462 | (24,039 | ) | 984,988 | 41,632 | 2,689,383 | |||||||
| (1) | It includes the balance amounts from its subsidiary Macro Fondos SGFCISA. | |||||||||||||||
| --- | --- | |||||||||||||||
| (2) | Includes close family members of the key management personnel. | |||||||||||||||
| --- | --- | |||||||||||||||
| As of March 31, 2023 | ||||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | |||
| Main subsidiaries | ||||||||||||||||
| Macro<br><br> Bank<br><br> Limited | Macro<br><br> Securities<br><br> SAU (1) | Argenpay<br><br> SAU | Fintech<br><br> SGR | Associates | Key<br><br> management<br><br> personnel<br><br> (2) | Other<br><br> related<br><br> parties | Total | |||||||||
| Income / (loss) | ||||||||||||||||
| Interest income | 3,177 | 410,571 | 1,407,313 | 1,821,061 | ||||||||||||
| Interest expense | (31,716 | ) | (103,158 | ) | (78,125 | ) | (212,999 | ) | ||||||||
| Commissions income | 44,764 | 1,133 | 900 | 182 | 25,976 | 72,955 | ||||||||||
| Commissions expense | (18,924 | ) | (47 | ) | (18,971 | ) | ||||||||||
| Other operating income | 101,102 | 50 | 1,638,413 | 70 | 1,739,635 | |||||||||||
| Administrative expense | (1,050,284 | ) | (1,050,284 | ) | ||||||||||||
| Other operating expense | (67,893 | ) | (67,893 | ) | ||||||||||||
| Total income / (loss) | 149,043 | 50 | 1,620,622 | (30,816 | ) | 307,548 | 237,057 | 2,283,504 | ||||||||
| (1) | It includes the balance amounts from its subsidiary Macro Fondos SGFCISA. | |||||||||||||||
| --- | --- | |||||||||||||||
| (2) | Includes close family members of the key management personnel. | |||||||||||||||
| --- | --- |
Transactions generated by the Bank with its related parties for arranged transactions within the course of the usual and ordinary course of business were performed in normal market conditions, both as to interest rates and prices and as to the required guarantees.
The Bank does not have loans granted to Directors and other key management personnel secured with shares.
Total remunerations received as salary and bonus by the key management personnel as of March 31, 2024 and 2023 amounted to 957,513 and 819,882, respectively.
101
NOTES TO THE CONDENSED SEPARATE INTERIM FINANCIALSTATEMENTS
AS OF MARCH 31, 2024
(Translation of Financial Statements originally issued in Spanish – See Note 41)
(Figures stated in thousands of pesos in constant currency)
In addition, fees received by the Directors as of March 31, 2024 and 2023 amounted to 957,513 and 819,882, respectively.
Additionally, the composition of the Board of Directors and key management personnel is as follows:
| Composition | 03/31/2024 | 12/31/2023 | ||
|---|---|---|---|---|
| Board of Directors | 12 | 12 | ||
| Senior managers of the key management personnel | 11 | 11 | ||
| Total | 23 | 23 | ||
| 13. | DEPOSITS | |||
| --- | --- |
The composition of deposits as of March 31, 2024 and December 31, 2023 is as follows:
| Composition | 03/31/2024 | 12/31/2023 | ||
|---|---|---|---|---|
| Non-financial public sector | 517,538,659 | 282,727,782 | ||
| Financial sector | 8,330,258 | 11,254,151 | ||
| Non-financial private sector and foreign residents | 3,782,215,901 | 3,889,522,557 | ||
| Checking accounts | 372,363,166 | 487,961,704 | ||
| Saving accounts | 1,418,907,019 | 1,820,761,688 | ||
| Time deposits | 1,756,620,934 | 1,412,342,875 | ||
| Investment accounts | 175,481,847 | 102,282,707 | ||
| Other | 58,842,935 | 66,173,583 | ||
| Total | 4,308,084,818 | 4,183,504,490 | ||
| 14. | OTHER FINANCIAL LIABILITIES | |||
| --- | --- |
The composition of other financial liabilities as of March 31, 2024 and December 31, 2023 is as follows:
| Composition | 03/31/2024 | 12/31/2023 | ||
|---|---|---|---|---|
| Credit and debit card settlement - due to merchants | 220,639,745 | 296,182,853 | ||
| Payment orders pending to foreign exchange settlement | 31,454,485 | 40,798,643 | ||
| Collections and other transactions on account and behalf of others | 14,329,045 | 15,181,181 | ||
| Finance leases liabilities | 10,409,941 | 12,515,830 | ||
| Amounts payable for spot purchases of government securities pending settlement | 1,167,585 | |||
| Amounts payable for spot purchases of foreign currency pending settlement | 1,045,385 | 2,011,342 | ||
| Other | 19,423,883 | 23,745,483 | ||
| Total | 298,470,069 | 390,435,332 | ||
| 15. | PROVISIONS | |||
| --- | --- |
This item includes the amounts estimated to face a liability of probable occurrence, which if occurring, would originate a loss for the Bank.
Exhibit J “Changes in provisions” presents the changes in provisions as of March 31, 2024 and December 31, 2023.
102
NOTES TO THE CONDENSED SEPARATE INTERIM FINANCIALSTATEMENTS
AS OF MARCH 31, 2024
(Translation of Financial Statements originally issued in Spanish – See Note 41)
(Figures stated in thousands of pesos in constant currency)
The expected terms to settle these obligations are as follows:
| 03/31/2024 | ||||||||
|---|---|---|---|---|---|---|---|---|
| Composition | Within 12<br><br> months | Over 12 <br><br>months | 03/31/2024 | 12/31/2023 | ||||
| For administrative, disciplinary and criminal penalties | 500 | 500 | 758 | |||||
| Letters of credits, guarantees and other commitments (1) | 1,898,500 | 1,898,500 | 2,075,697 | |||||
| Commercial claims in progress (2) | 1,627,509 | 827,736 | 2,455,245 | 3,331,912 | ||||
| Labor lawsuits | 852,765 | 170,931 | 1,023,696 | 791,857 | ||||
| Pension funds - reimbursement | 801,772 | 510,165 | 1,311,937 | 1,848,780 | ||||
| Other | 838 | 2,061,481 | 2,062,319 | 853,787 | ||||
| Total | 5,181,384 | 3,570,813 | 8,752,197 | 8,902,791 | ||||
| (1) | These amounts correspond to the ECL calculated for contingent transactions, which are mentioned in Note 4. | |||||||
| --- | --- | |||||||
| (2) | See also Note 36.2. | |||||||
| --- | --- | |||||||
| 16. | OTHER NON-FINANCIAL LIABILITIES | |||||||
| --- | --- |
The composition of other non-financial liabilities as of March 31, 2024 and December 31, 2023 is as follows:
| Composition | 03/31/2024 | 12/31/2023 | ||
|---|---|---|---|---|
| Salaries, bonuses and payroll taxes payables | 53,723,161 | 60,138,868 | ||
| Withholdings | 38,791,395 | 55,573,254 | ||
| Taxes payables | 39,040,380 | 46,661,716 | ||
| Miscellaneous payables | 21,950,797 | 24,371,080 | ||
| Directors’ and syndics’ fees payable | 10,002,050 | 24,261,019 | ||
| Retirement pension payment orders pending settlement | 1,771,666 | 2,194,192 | ||
| Dividends payable | 83,595 | 121,511 | ||
| Other | 980,374 | 1,033,191 | ||
| Total | 166,343,418 | 214,354,831 | ||
| 17. | ANALYSIS OF FINANCIAL ASSETS TO BE RECOVERED AND FINANCIAL LIABILITIES TO BE SETTLED | |||
| --- | --- |
The following tables show the analysis of financial assets and liabilities the Bank expects to recover and settle as of March 31, 2024 and December 31, 2023:
| 03/31/2024 | Without due<br><br> date | Total up to 12<br><br> months | Total over 12<br><br> months | |||
|---|---|---|---|---|---|---|
| Assets | ||||||
| Cash and deposits in banks | 878,300,066 | |||||
| Debt securities at fair value through profit or loss | 7,199,230 | 3,902,376,028 | ||||
| Derivative financial instruments | 42,279,672 | |||||
| Repo transactions | 218,319,703 | |||||
| Other financial assets | 34,689,337 | 19,970,763 | 44,982,811 | |||
| Loans and other financing (1) | 4,183,922 | 1,643,220,000 | 482,929,054 | |||
| Other debt securities | 317,213,663 | 87,024,329 | ||||
| Financial assets delivered as guarantee | 90,966,642 | 28,242,998 | ||||
| Investments in equity instruments | 2,701,008 | |||||
| Total assets | 1,010,840,975 | 2,276,446,029 | 4,517,312,222 |
103
NOTES TO THE CONDENSED SEPARATE INTERIM FINANCIALSTATEMENTS
AS OF MARCH 31, 2024
(Translation of Financial Statements originally issued in Spanish – See Note 41)
(Figures stated in thousands of pesos in constant currency)
| 03/31/2024 | Without due <br><br>date | Total up to 12<br><br> months | Total over 12<br><br> months | |||
|---|---|---|---|---|---|---|
| Liabilities | ||||||
| Deposits | 1,996,415,496 | 2,311,477,627 | 191,695 | |||
| Derivative financial instruments | 148,703 | |||||
| Repo transactions | 20,856,886 | |||||
| Other financial liabilities | 290,021,621 | 8,448,448 | ||||
| Financing received from the BCRA and other financial institutions | 10,756,481 | |||||
| Issued corporate bonds | 60,842,410 | |||||
| Subordinated corporate bonds | 11,570,955 | 342,966,680 | ||||
| Total liabilities | 1,996,415,496 | 2,705,674,683 | 351,606,823 | |||
| (1) | The amounts included in “without due date” are related to the non-performing portfolio. | |||||
| --- | --- | |||||
| 12/31/2023 | Without due<br><br> date | Total up to 12<br><br> months | Total over 12<br><br> months | |||
| --- | --- | --- | --- | --- | --- | --- |
| Assets | ||||||
| Cash and deposits in banks | 1,428,625,988 | |||||
| Debt securities at fair value through profit or loss | 2,314,152,593 | 31,838,677 | ||||
| Derivative financial instruments | 136,769 | |||||
| Repo transactions | 799,820,555 | |||||
| Other financial assets | 47,553,125 | 23,008,069 | 68,491,989 | |||
| Loans and other financing (1) | 772,618 | 1,833,342,126 | 485,004,357 | |||
| Other debt securities | 148,005,772 | 397,934,712 | ||||
| Financial assets delivered as guarantee | 103,499,429 | 46,165,681 | ||||
| Investments in equity instruments | 3,973,684 | |||||
| Total assets | 1,584,424,844 | 5,164,631,565 | 983,269,735 | |||
| Liabilities | ||||||
| Deposits | 2,474,163,751 | 1,709,045,127 | 295,612 | |||
| Derivative financial instruments | 113,930 | |||||
| Repo transactions | 35,784,780 | |||||
| Other financial liabilities | 379,039,390 | 11,395,942 | ||||
| Financing received from the BCRA and other financial institutions | 11,475,939 | |||||
| Issued corporate bonds | 86,062,071 | |||||
| Subordinated corporate bonds | 8,702,473 | 490,335,074 | ||||
| Total liabilities | 2,474,163,751 | 2,230,223,710 | 502,026,628 | |||
| (1) | The amounts included in “without due date” are related to the non-performing portfolio. | |||||
| --- | --- | |||||
| 18. | DISCLOSURES BY OPERATING SEGMENT | |||||
| --- | --- |
The Bank has an approach of its banking business that is described in Note 20 to the condensed consolidated interim Financial Statements.
104
NOTES TO THE CONDENSED SEPARATE INTERIM FINANCIALSTATEMENTS
AS OF MARCH 31, 2024
(Translation of Financial Statements originally issued in Spanish – See Note 41)
(Figures stated in thousands of pesos in constant currency)
| 19. | INCOME TAX |
|---|---|
| a) | Inflation adjustment and tax rate<br>on income tax |
| --- | --- |
Note 21 to the condensed consolidated interim Financial Statements are detailed the legal aspects of the inflation adjustment on income tax and the corporate tax rate on tax rate.
| b) | The main items of income tax expense in the condensed consolidated interim Financial Statements are as<br>follows: | |||||
|---|---|---|---|---|---|---|
| Composition | 03/31/2024 | 03/31/2023 | ||||
| --- | --- | --- | --- | --- | --- | --- |
| Current income tax expense | 99,370,547 | 17,422,280 | ||||
| (Income) / loss for deferred income taxes | (12,153,290 | ) | 1,226,891 | |||
| Income tax loss recorded in the statement of income | 87,217,257 | 18,649,171 | ||||
| Income tax profit recorded in other comprehensive income | (2,965,335 | ) | (1,369,299 | ) | ||
| Total | 84,251,922 | 17,279,872 |
Fiscal years 2019 and 2020
As decided by the Board of Directors in the meeting held on May 11, 2020, considering certain case law on the matter assessed by its legal counsel and tax advisors, on May 26 the Bank filed with the Administración Federal de Ingresos Públicos (AFIP, for its acronym in Spanish) its annual income tax return considering the total effect of the inflation adjustment on income tax (see section a) iv) of Note 21 to the condensed consolidated interim Financial Statements). As a result, the current income tax determined by the Bank for fiscal year 2019 amounted to 7,002,124 (not restated). The same criterion was applied to determine the annual income tax report for 2020, which generated accrued income tax for the Bank for such fiscal year that amounted to 9,933,210 (not restated).
In addition, on July 23, 2021, the Bank filed a reimbursement action with the AFIP requesting that 254,305 (not restated) paid as income tax for the 2020 tax period be reimbursed.
As to the tax periods mentioned in previous paragraphs, on November 1, 2021, the AFIP notified the beginning of an income tax audit, which is in progress.
Along with the filings mentioned in the first paragraph of this section, on December 28, 2021, the Bank filed petitions for declaratory judgment with the Federal Administrative Contentious Court for the periods under analysis. The file 22274/2021, for the fiscal year 2019, is in process in Court No. 12 and the file 22278/2021, for the fiscal year 2020, is in process in Court No. 1.
Fiscal year 2021
On October 17, 2022, Banco Macro SA filed a reimbursement action with the AFIP requesting that 382,189 (not restated) paid as income tax for the 2021 tax period be reimbursed.
On January 3, 2023, the AFIP notified the beginning of an income tax audit related to the abovementioned fiscal year, which is in progress.
Fiscal year 2022
On June 30, 2023, Banco Macro SA filed a reimbursement action with the AFIP requesting that 654,673 paid as income tax for the 2022 tax period be reimbursed.
105
NOTES TO THE CONDENSED SEPARATE INTERIM FINANCIALSTATEMENTS
AS OF MARCH 31, 2024
(Translation of Financial Statements originally issued in Spanish – See Note 41)
(Figures stated in thousands of pesos in constant currency)
Reimbursement actions – Fiscal years 2013 to 2017 and 2018
On October 24, 2019, Banco Macro SA filed with the AFIP-DGI (Argentine tax authorities) two reimbursement actions under the terms established by the first paragraph of section 81, Law No. 11683 requesting the reimbursement of 4,782,766 and 5,015,451 (not restated amounts) paid to tax authorities as income tax during tax periods 2013 through 2017 and 2018, respectively, arising from the impossibility to apply the adjustment for inflation and other adjustment mechanisms set forth by income tax Law (prior to the amendments introduced by Laws No. 27430 and 27468 for periods 2013 through 2017, and as revised in 2019 and amended for the 2018 tax period), plus the related compensatory interest (SIGEA [case and file management system] files No. 19144-14224/2019 and 19144-14222/2019). Since tax authorities have not yet issued a resolution with respect to the abovementioned claims, on August 7, 2020, the Bank filed both reimbursement requests under the terms of section 81, Law No. 11683 with the Federal Contentious and Administrative Trial Courts, which are pending in Courts No. 8 and 2 of such jurisdiction, respectively (cases No. 11285/2020 and 11296/2020). Currently, in connection with the file for the fiscal year 2018, the evidence stage is closed and the process for allegation was delivered.
In connection with the tax periods mentioned in the previous paragraph, on December 19, 2019, the AFIP notified the beginning of the income tax audit for the 2018 tax period, and on May 3, 2021, it notified the beginning of the income tax audit for periods 2013 through 2017. On October 4, 2021, the AFIP ended the audit for periods 2013 through 2017 as the Bank had exercised in due time its right to resort to justice, and that the admission of reimbursement is subject to a court decision.
| 20. | COMMISSIONS INCOME | ||||
|---|---|---|---|---|---|
| Composition | 03/31/2024 | 03/31/2023 | |||
| --- | --- | --- | --- | --- | --- |
| Performance obligations satisfied at a point in time | |||||
| Commissions related to obligations | 41,431,863 | 52,979,092 | |||
| Commissions related to credit cards | 24,307,619 | 30,927,250 | |||
| Commissions related to insurance | 3,255,766 | 5,078,375 | |||
| Commissions related to trading and foreign exchange transactions | 2,114,401 | 1,990,454 | |||
| Commissions related to securities value | 960,051 | 787,753 | |||
| Commissions related to loans and other financing | 744,126 | 232,192 | |||
| Commissions related to financial guarantees granted | 1,248 | 6,982 | |||
| Performance obligations satisfied over certain time period | |||||
| cards Commissions related to trading and foreign exchange transactions | 291,941 | 79,816 | |||
| Commissions related to credit | 287,128 | 418,382 | |||
| Commissions related to loans and other financing | 3,461 | 72,612 | |||
| Commissions related to obligations | (72 | ) | 1,799 | ||
| Total | 73,397,532 | 92,574,707 | |||
| 21. | DIFFERENCES IN QUOTED PRICES OF GOLD AND FOREIGN CURRENCY | ||||
| --- | --- | ||||
| Composition | 03/31/2024 | 03/31/2023 | |||
| --- | --- | --- | --- | --- | |
| Translation of foreign currency assets and liabilities into pesos | 71,706,073 | 140,129,743 | |||
| Income from foreign currency exchange | 200,907 | 850,608 | |||
| Total | 71,906,980 | 140,980,351 |
106
NOTES TO THE CONDENSED SEPARATE INTERIM FINANCIALSTATEMENTS
AS OF MARCH 31, 2024
(Translation of Financial Statements originally issued in Spanish – See Note 41)
(Figures stated in thousands of pesos in constant currency)
| 22. | OTHER OPERATING INCOME | |||
|---|---|---|---|---|
| Composition | 03/31/2024 | 03/31/2023 | ||
| --- | --- | --- | --- | --- |
| Adjustments and interest from other receivables | 6,545,168 | 5,205,901 | ||
| Adjustments from other receivables with CER clauses | 5,217,585 | 2,128,870 | ||
| Services | 3,680,172 | 4,574,303 | ||
| Other receivables from financial intermediation | 2,195,359 | 492,065 | ||
| Other | 7,809,833 | 3,611,590 | ||
| Total | 25,448,117 | 16,012,729 | ||
| 23. | EMPLOYEE BENEFITS | |||
| --- | --- | |||
| Composition | 03/31/2024 | 03/31/2023 | ||
| --- | --- | --- | --- | --- |
| Remunerations | 69,014,743 | 60,194,124 | ||
| Payroll taxes | 18,330,203 | 15,170,119 | ||
| Compensations and bonuses to employees | 14,570,999 | 9,875,111 | ||
| Employee services | 2,791,415 | 3,046,425 | ||
| Total | 104,707,360 | 88,285,779 | ||
| 24. | ADMINISTRATIVE EXPENSES | |||
| --- | --- | |||
| Composition | 03/31/2024 | 03/31/2023 | ||
| --- | --- | --- | --- | --- |
| Fees to directors and syndics | 11,253,382 | 1,544,337 | ||
| Taxes | 8,717,176 | 7,430,633 | ||
| Maintenance, conservation and repair expenses | 6,706,457 | 6,883,819 | ||
| Armored truck, documentation and events | 5,166,829 | 6,292,248 | ||
| Electricity and communications | 4,763,197 | 4,123,921 | ||
| Other fees | 4,392,558 | 4,621,264 | ||
| Security services | 3,540,877 | 4,322,143 | ||
| Advertising and publicity | 2,630,522 | 1,765,400 | ||
| Software | 2,577,393 | 3,028,030 | ||
| Hired administrative services | 1,671,131 | 323,538 | ||
| Representation, travel and transportation expenses | 644,815 | 826,277 | ||
| Stationery and office supplies | 303,586 | 402,605 | ||
| Insurance | 243,598 | 367,666 | ||
| Leases | 173,109 | 177,395 | ||
| Other | 1,658,816 | 1,232,065 | ||
| Total | 54,443,446 | 43,341,341 |
107
NOTES TO THE CONDENSED SEPARATE INTERIM FINANCIALSTATEMENTS
AS OF MARCH 31, 2024
(Translation of Financial Statements originally issued in Spanish – See Note 41)
(Figures stated in thousands of pesos in constant currency)
| 25. | OTHER OPERATING EXPENSES | |||
|---|---|---|---|---|
| Composition | 03/31/2024 | 03/31/2023 | ||
| --- | --- | --- | --- | --- |
| Turnover tax | 81,945,248 | 53,572,859 | ||
| From credit cards | 25,355,729 | 19,973,003 | ||
| Charges for other provisions | 3,401,601 | 2,544,617 | ||
| Deposit guarantee fund contributions | 1,418,650 | 2,351,616 | ||
| Insurance claims | 977,178 | 890,209 | ||
| Other adjustments and interests for miscellaneous obligations | 536,046 | 394,725 | ||
| Donations | 529,813 | 800,371 | ||
| Taxes | 25,016 | 179,093 | ||
| Loss from sale or depreciation of property, plant and equipment | 19,466 | |||
| Loss from sale or impairment of investment in properties and other non-financial assets | 174,931 | |||
| Other | 8,534,067 | 9,258,719 | ||
| Total | 122,742,814 | 90,140,143 | ||
| 26. | 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 other<br>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:
| Description | 03/31/2024 | 12/31/2023 | 03/31/2023 | 12/31/2022 | ||||
|---|---|---|---|---|---|---|---|---|
| Cash and deposits in banks | 878,300,066 | 1,428,625,988 | 1,115,605,567 | 1,133,247,479 | ||||
| Debt securities at fair value through profit or loss | 621,806 | |||||||
| Other debt securities | 2,497,486,796 | 2,320,778,889 | ||||||
| Total | 878,921,872 | 1,428,625,988 | 3,613,092,363 | 3,454,026,368 | ||||
| 27. | CAPITAL STOCK | |||||||
| --- | --- |
The Bank’s subscribed and paid-in capital from December 31, 2021 to March 31, 2024, amounted to 639,413. See also Exhibit K.
108
NOTES TO THE CONDENSED SEPARATE INTERIM FINANCIALSTATEMENTS
AS OF MARCH 31, 2024
(Translation of Financial Statements originally issued in Spanish – See Note 41)
(Figures stated in thousands of pesos in constant currency)
| 28. | DEPOSIT GUARANTEE INSURANCE |
|---|
Note 31 to the condensed consolidated interim Financial Statements describes the Deposit Guarantee Insurance System and the scope thereof.
Banco Macro SA holds a 7.6285% interest in the capital stock according to the percentages disclosed by BCRA Communiqué “B” 12755 issued on March 4, 2024.
| 29. | RESTRICTED ASSETS |
|---|
As of March 31, 2024 and December 31, 2023 the following Bank’s assets are restricted:
| Composition | 03/31/2024 | 12/31/2023 | |||
|---|---|---|---|---|---|
| Debt securities at fair value through profit or loss and Other debt securities | |||||
| · | Argentine government Treasury bonds in pesos adjusted by CER 4.25% - Maturity: 02/14/2025, as of March 31, 2024 and Argentine government discount bonds in dual currency – Maturity - 02/28/2024, as of December 31, 2023, for the contribution to Guarantee Fund II in BYMA in accordance to section 45, Law 26,831 and its complementary regulations established in the CNV Standards (NT 2013 and amendments). | 3,048,887 | 1,926,975 | ||
| · | Discount bonds in pesos regulated by Argentine legislation, maturing in 2033, to guarantee the Credit Program for Production Reactivation of the Province of San Juan. | 1,283,252 | 1,438,287 | ||
| · | Discount bonds in pesos regulated by Argentine legislation, maturing in 2033 for the minimum statutory guarantee account required for Agents to act in the new categories contemplated under Resolution No. 622/2013, as amended, of the Argentine Securities Commission (CNV). | 370,425 | 415,177 | ||
| · | Argentine government Treasury bonds in pesos adjusted by CER 2% – Maturity: 11/09/2026, to guarantee the Credit Program for Production Reactivation of the Province of San Juan. | 347,455 | 359,271 | ||
| · | Discount bonds in pesos regulated by Argentine legislation, maturing in 2033, affected by guarantee the sectoral Credit Program of the Province of San Juan, production investment financing fund. | 211,613 | 216,277 | ||
| · | Discount bonds in pesos regulated by Argentine legislation, maturing in 2033, as of December 31, 2023 affected by the guarantee of the Regional Economies Competitiveness Program - IDB Loan No. 3174/OC-AR | 22,812 | |||
| · | Other. | 6,648 | |||
| Subtotal Debt securities at fair value through profit or loss and Other debt securities | 5,268,280 | 4,378,799 | |||
| Other financial assets | |||||
| · | Interests derived from contributions made as protector partner<br>(1). | 8,171,284 | 12,389,455 | ||
| · | Sundry debtors – attachment within the scope of the claim<br>filed by the DGR against the CABA for turnover tax differences. | 827 | 1,254 | ||
| Subtotal Other financial assets | 8,172,111 | 12,390,709 | |||
| Financial assets delivered as a guarantee | |||||
| · | Special guarantee checking accounts opened in the BCRA for<br>transactions related to the electronic clearing houses and similar entities. | 78,037,888 | 86,717,858 | ||
| · | For securities forward contracts. | 28,242,998 | 46,165,681 | ||
| · | Guarantee deposits related to credit and debit card transactions. | 11,134,378 | 10,245,824 | ||
| · | Other guarantee deposits. | 1,794,376 | 6,535,746 | ||
| Subtotal Financial assets delivered as guarantee | 119,209,640 | 149,665,109 |
109
NOTES TO THE CONDENSED SEPARATE INTERIM FINANCIALSTATEMENTS
AS OF MARCH 31, 2024
(Translation of Financial Statements originally issued in Spanish – See Note 41)
(Figures stated in thousands of pesos in constant currency)
| Composition (contd.) | 03/31/2024 | 12/31/2023 | |||
|---|---|---|---|---|---|
| Other non-financial assets | |||||
| · | Real<br>property related to a call option sold. | 11,281,001 | 11,280,992 | ||
| Subtotal Other non-financial assets | 11,281,001 | 11,280,992 | |||
| Total | 143,931,032 | 177,715,609 | |||
| (1) | As of March 31, 2024 and December 31, 2023, it corresponds to contributions to the Fintech SGR,<br>Alianza SGR and Innova SGR risk fund. In order to maintain the tax benefits generated by these contributions, they must remain between<br>two and three years from the date of their making. | ||||
| --- | --- | ||||
| 30. | TRUST ACTIVITIES | ||||
| --- | --- |
Note 33 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:
| 30.1 | Financial trusts for investment purposes |
|---|
As of March 31, 2024 and December 31, 2023, the debt securities with investment purposes and certificate of participation in financial trusts amounted to 1,034,073 and 1,104,626, 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.
| 30.2 | Trusts created using financial assets transferred by the Bank (Securitization) |
|---|
As of March 31, 2024 and December 31, 2023, considering the latest available accounting information as of the date of issuance of these condensed separate interim Financial Statements, the assets managed through Macro Fiducia SAU of this type of trusts amounted to 2,636 and 3,997, respectively.
| 30.3 | Trusts guaranteeing loans granted by the Bank |
|---|
As of March 31, 2024 and December 31, 2023, considering the latest accounting information available as of the date of issuance of these condensed separate interim Financial Statements, the assets managed by the Bank amounted to 7,284,857 and 1,215,977, respectively.
| 30.4 | Trusts in which the Bank acts as Trustee (Management) |
|---|
As of March 31, 2024 and December 31, 2023, considering the latest available accounting information as of the date of issuance of these condensed separate interim Financial Statements, the assets managed by the Bank amounted to 13,096,800 and 10,491,534, respectively.
| 31. | COMPLIANCE WITH CNV REGULATIONS |
|---|
Considering Banco Macro SA’s current operations, and according to the different categories of agents established by CNV rules (as per General Resolution 622/2013, as amended), the Bank is registered with this agency as Agent for the Custody of Collective Investment Products of Mutual Funds (AC PIC FCI, for their acronyms in Spanish) – Comprehensive Depositary Company, clearing and settlement agent and trading agent (ALyC and AN – comprehensive, for their acronyms in Spanish) and is registered in the “List of Authorized companies to guarantee capital market instruments”, as described in Note 34.1.1 to the condensed consolidated interim Financial Statements. Note 34.3 to the mentioned Financial Statements describes the number of shares subscribed by third parties and the assets held by the Bank in its capacity as depositary company.
Additionally, the Bank’s shareholders’ equity as of March 31, 2024 stated in Units of Purchasing Power (UVA, for its acronym in Spanish) amounted to 4,274,409,657 and exceeds the minimum amount required by such regulation for the different categories of agents in which the Bank is registered, amounting to 470,350 UVAs as of that date, and the minimum required statutory guarantee account of 235,175 UVAs, which the Bank paid-in with government securities as described in Note 29 and the cash deposits in BCRA accounts 000285 and 80285 belonging to the Bank.
110
NOTES TO THE CONDENSED SEPARATE INTERIM FINANCIALSTATEMENTS
AS OF MARCH 31, 2024
(Translation of Financial Statements originally issued in Spanish – See Note 41)
(Figures stated in thousands of pesos in constant currency)
In addition, Note 34.2 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.
| 32. | ACCOUNTING ITEMS THAT IDENTIFY THE COMPLIANCE WITH MINIMUM CASH REQUIREMENTS |
|---|
The items recognized by the Bank to constitute the minimum cash requirement effective for March 2024 are described in Note 35 to the condensed consolidated interim Financial Statements.
| 33. | PENALTIES APPLIED TO THE BANK AND SUMMARY PROCEEDINGS INITIATED BY THE BCRA |
|---|
Note 36.1 to the condensed consolidated interim Financial Statements describes the penalties applied and the summary proceedings filed by the BCRA against the Bank, classified as follows:
| - | Summary proceedings filed by the<br>BCRA. |
|---|---|
| - | Penalties applied by the BCRA. |
| --- | --- |
| - | Penalties applied by the UIF. |
| --- | --- |
| - | Summary proceedings before the<br>CNV and the UIF. |
| --- | --- |
The Bank’s Management and its legal counsel consider no further significant accounting effects could arise from the final outcome of the above mentioned judicial proceedings.
| 34. | CORPORATE BONDS ISSUANCE |
|---|
Note 37.1 to the condensed consolidated interim Financial Statements describes liabilities for corporate bonds recognized by the Bank. The corporate bonds liabilities recorded by the Bank are as follows:
| Corporate Bonds | Original value | Residual face<br><br> value as of<br><br> 03/31/2024 | 03/31/2024 | 12/31/2023 | ||||
|---|---|---|---|---|---|---|---|---|
| Subordinated Resettable – Class A | USD | 400,000,000 | USD | 400,000,000 | 354,537,635 | 499,037,547 | ||
| Non-subordinated – Class E | USD | 17,000,000 | USD | 17,000,000 | 14,605,667 | 20,863,306 | ||
| Non-subordinated – Class F | USD | 53,000,000 | USD | 53,000,000 | 46,236,743 | 65,198,765 | ||
| Total | 415,380,045 | 585,099,618 | ||||||
| 35. | OFF BALANCE SHEET TRANSACTIONS | |||||||
| --- | --- |
In addition to Note 4, the Bank recognizes different off balance sheet transactions, pursuant to the BCRA standards. The composition of the amounts of the main off balance sheet transactions as of March 31, 2024 and December 31, 2023 is as follows:
| Composition | 03/31/2024 | 12/31/2023 | ||
|---|---|---|---|---|
| Custody of government and private securities and other assets held by third parties | 3,339,602,906 | 3,548,834,959 | ||
| Preferred and other collaterals received from customers (1) | 676,622,989 | 838,220,296 | ||
| Checks already deposited and pending clearance | 67,035,075 | 79,640,720 | ||
| Outstanding checks not yet paid | 52,244,968 | 119,940,045 | ||
| (1) | Related to collaterals used to secure loans transactions and other financing, under the applicable rules in<br>force on this matter. | |||
| --- | --- |
111
NOTES TO THE CONDENSED SEPARATE INTERIM FINANCIALSTATEMENTS
AS OF MARCH 31, 2024
(Translation of Financial Statements originally issued in Spanish – See Note 41)
(Figures stated in thousands of pesos in constant currency)
| 36. | TAX AND OTHER CLAIMS |
|---|---|
| 36.1 | Tax claims |
| --- | --- |
Note 39.1 to the condensed consolidated interim Financial Statements describes the most relevant claims filed by the AFIP and the tax authorities of the relevant jurisdictions.
The Bank’s Management and its legal counsel consider no further significant accounting effects could arise from the final outcome of the abovementioned proceedings other than those already disclosed.
| 36.2 | Other claims |
|---|
Note 39.2 to the condensed consolidated interim Financial Statements describes the most relevant claims filed by the different consumers’ associations.
The Bank’s Management and its legal counsel consider no further significant accounting effects could arise from the final outcome of the above mentioned proceedings other than those already disclosed.
| 37. | RESTRICTION ON DIVIDENDS DISTRIBUTION |
|---|
Note 40 to the condensed consolidated interim Financial Statements describes the main legal provisions regulating the restriction on dividends distribution and the decisions made by the Shareholders’ Meeting held on April 12, 2024.
| 38. | CAPITAL MANAGEMENT, CORPORATE GOVERNANCE TRANSPARENCY POLICY AND RISK MANAGEMENT |
|---|
Note 41 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.
Minimum capital:
The table below details the minimum capital requirement of the Bank, effective for the month of March 2024, along with its integration (computable equity liability) at the end of such month:
| Item | 03/31/2024 | |
|---|---|---|
| Minimum capital requirement | 450,987,351 | |
| Computable equity | 2,823,870,936 | |
| Capital surplus | 2,372,883,585 | |
| 39. | CHANGES IN THE ARGENTINE MACROECONOMIC ENVIRONMENT AND FINANCIAL AND CAPITAL MARKETS | |
| --- | --- |
The international and domestic macroeconomics environments in which the Bank operates and its impacts are described in Note 42 to the condensed consolidated interim Financial Statements.
| 40. | EVENTS AFTER REPORTING PERIOD |
|---|
No other significant events occurred between the end of the period and the issuance of these condensed separate interim Financial Statements that may materially affect the financial position or the profit and loss of the period, not disclosed in these condensed separate interim Financial Statements.
| 41. | ACCOUNTING PRINCIPLES – EXPLANATION ADDED FOR TRANSLATION INTO ENGLISH |
|---|
These condensed separate interim Financial Statements are presented in accordance with the accounting framework established by the BCRA, as mentioned in Note 3. These accounting standards may not conform to accounting principles generally accepted in other countries.
| 112 | Jorge Pablo Brito <br> Chairperson |
| --- | --- |
EXHIBIT A
| DETAIL OF GOVERNMENT AND PRIVATE SECURITIES | ||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| AS OF MARCH 31, 2024 AND DECEMBER 31, 2023 | ||||||||||||||||
| (Translation of the Financial Statements originally issued in Spanish – See Note 41) | ||||||||||||||||
| (Figures stated in thousands of pesos in constant currency) | ||||||||||||||||
| Holdings | Position | |||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| 03/31/2024 | 12/31/2023 | 03/31/2024 | ||||||||||||||
| Name | Identification | Fair<br> Value | Fair<br> value<br> level | Book<br> amounts | Book<br> amounts | Position<br> without<br> options | Options | Final <br> position | ||||||||
| DEBT<br> SECURITIES AT FAIR VALUE THROUGH PROFIT OR LOSS | ||||||||||||||||
| - Local | ||||||||||||||||
| Government<br> securities | ||||||||||||||||
| Argentine<br> government Treasury discount bonds in pesos adjusted by CER - Maturity: 06-30-2027 | 9241 | 2 | 3,511,808,604 | 3,542,950,302 | (3,529,934,999 | ) | 13,015,303 | |||||||||
| Argentine<br> government Treasury discount bonds in pesos adjusted by CER - Maturity: 06-30-2025 | 9244 | 1 | 365,850,688 | 365,850,688 | 365,850,688 | |||||||||||
| Province<br> of Neuquén Treasury bills S01 C01 - Maturity: 04-19-2026 | 42753 | 2 | 9,453,020 | 13,901,000 | 9,453,020 | 9,453,020 | ||||||||||
| Argentine<br> government Treasury bonds in pesos adjusted by CER - Maturity: 11-09-2026 | 5925 | 1 | 3,690,450 | 3,580,015 | 3,690,450 | 3,690,450 | ||||||||||
| Argentine<br> government discount bonds in dual currency - Maturity: 06-30-2024 | 9230 | 1 | 2,636,681 | 101,631,122 | 2,636,681 | 2,636,681 | ||||||||||
| Argentine<br> government Treasury bonds tied to the US dollar - Maturity: 03-31-2025 | 9231 | 1 | 1,507,128 | 1,507,128 | 1,507,128 | |||||||||||
| Argentine<br> government Treasury bonds in pesos adjusted by CER - Maturity 11-04-2028 | 5926 | 1 | 1,010,403 | 55 | 1,010,403 | 1,010,403 | ||||||||||
| Argentine<br> government Treasury bonds in pesos adjusted by CER 4.25% - Maturity 02-14-2025 | 9180 | 1 | 798,768 | 75,039 | 798,768 | 798,768 | ||||||||||
| Argentine<br> government discount bonds in dual currency - Maturity: 08-30-2024 | 9201 | 1 | 558,179 | 1,229,561,928 | 558,179 | (415,547 | ) | 142,632 | ||||||||
| Argentine<br> government Treasury discount bonds in pesos adjusted by CER - Maturity: 06-30-2026 | 9240 | 1 | 403,918 | 403,918 | 403,918 | |||||||||||
| Other | 1,297,719 | 982,454,496 | 1,297,719 | (211,771,679 | ) | (210,473,960 | ) | |||||||||
| Subtotal<br> local government securities (1) | 3,899,015,558 | 2,331,203,655 | 3,930,157,256 | (3,742,122,225 | ) | 188,035,031 | ||||||||||
| Private<br> securities | ||||||||||||||||
| Corporate<br> bonds YPF SA C025 - Maturity: 02-13-2026 | 57118 | 1 | 10,550,064 | 14,776,977 | 10,550,064 | 10,550,064 | ||||||||||
| Utility<br> Company Securities | 3 | 9,636 | 10,638 | 9,636 | 9,636 | |||||||||||
| Subtotal<br> local private securities (1) | 10,559,700 | 14,787,615 | 10,559,700 | 10,559,700 | ||||||||||||
| TOTAL<br> DEBT SECURITIES AT FAIR VALUE THROUGH PROFIT OR LOSS | 3,909,575,258 | 2,345,991,270 | 3,940,716,956 | (3,742,122,225 | ) | 198,594,731 | ||||||||||
| 1) | See Note 5 to the condensed consolidated interim Financial Statements. | |||||||||||||||
| --- | --- |
| 113 | Jorge Pablo Brito <br> Chairperson |
| --- | --- |
EXHIBIT A
(continued)
DETAIL OF GOVERNMENT AND PRIVATE SECURITIES
AS OF MARCH 31, 2024 AND DECEMBER 31, 2023
(Translation of the Financial Statements originally issued in Spanish – See Note 41)
(Figures stated in thousands of pesos in constant currency)
| Holdings | Position | |||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 03/31/2024 | 12/31/2023 | 03/31/2024 | ||||||||||||||
| Name | Identification | Fair<br> Value | Fair<br> value<br> level | Book<br> amounts | Book<br> amounts | Position<br> without<br> options | Options | Final <br> position | ||||||||
| OTHER<br> DEBT SECURITIES | ||||||||||||||||
| Measured<br> at fair value through other comprehensive income | ||||||||||||||||
| - Local | ||||||||||||||||
| Government<br> securities | ||||||||||||||||
| Argentine<br> government Treasury bonds in pesos adjusted by CER 4.25% - Maturity: 02-14-2025 | 9180 | 1 | 239,862,001 | 280,949,671 | 249,822,676 | (257,778,944 | ) | (7,956,268 | ) | |||||||
| Argentine<br> government Treasury bonds in pesos adjusted by CER 4.25% - Maturity: 10-14-2024 | 9179 | 1 | 2,556,050 | 3,336,743 | 2,767,100 | (68,260,532 | ) | (65,493,432 | ) | |||||||
| Argentine<br> government Treasury bonds in pesos adjusted by CER 3.75% - Maturity: 04-14-2024 | 9178 | 1 | 703,452 | 50,428,229 | 1,045,902 | (37,441,200 | ) | (36,395,298 | ) | |||||||
| Argentine<br> government US dollar step-up bonds - Maturity: 07-09-2030 | 5921 | 1 | 26,833 | 27,998 | 26,833 | 26,833 | ||||||||||
| Argentine<br> government Treasury bonds in pesos adjusted by CER - Maturity: 11-09-2025 | 9131 | (25,797 | ) | (25,797 | ) | |||||||||||
| Subtotal<br> local government securities (2) | 243,148,336 | 334,742,641 | 253,662,511 | (363,506,473 | ) | (109,843,962 | ) | |||||||||
| Total<br> Other debt securities measured at fair value through other comprehensive income | 243,148,336 | 334,742,641 | 253,662,511 | (363,506,473 | ) | (109,843,962 | ) | |||||||||
| Measured<br> at amortized cost | ||||||||||||||||
| - Local | ||||||||||||||||
| Government<br> securities | ||||||||||||||||
| Argentine<br> government Treasury bonds in pesos - Maturity: 08-23-2025 | 9196 | 123,272,780 | 1 | 78,043,238 | 68,176,210 | 78,043,238 | 78,043,238 | |||||||||
| Argentine<br> government Treasury bonds in pesos - Maturity: 05-23-2027 | 9132 | 43,655,389 | 1 | 43,625,275 | 53,479,683 | 44,660,875 | 44,660,875 | |||||||||
| Argentine<br> government Treasury bonds in pesos BADLAR x 0.7 - Maturity: 11-23-2027 | 9166 | 12,768,015 | 1 | 14,093,696 | 21,350,632 | 14,093,696 | 14,093,696 | |||||||||
| Córdoba<br> bills Series L - Maturity: 03-16-2025 | 42808 | 3,080,685 | 1 | 3,070,755 | 3,070,755 | 3,070,755 | ||||||||||
| Discount<br> bonds in pesos 5.83% - Maturity: 12-31-2033 | 45696 | 4,048,295 | 1 | 2,022,571 | 2,266,926 | 2,022,571 | 2,022,571 | |||||||||
| Province<br> of Río Negro Treasury bills S03 - Maturity: 06-14-2024 | 42698 | 212,950 | 2 | 244,427 | 379,839 | 244,427 | 244,427 | |||||||||
| Subtotal<br> local government securities | 141,099,962 | 145,653,290 | 142,135,562 | 142,135,562 | ||||||||||||
| 2) | See Note 9 to the condensed consolidated interim Financial Statements. | |||||||||||||||
| --- | --- |
| 114 | Jorge Pablo Brito <br> Chairperson |
| --- | --- |
EXHIBIT A
(continued)
DETAIL OF GOVERNMENT AND PRIVATE SECURITIES
AS OF MARCH 31, 2024 AND DECEMBER 31, 2023
(Translation of the Financial Statements originally issued in Spanish – See Note 41)
(Figures stated in thousands of pesos in constant currency)
| Holdings | Position | ||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 03/31/2024 | 12/31/2023 | 03/31/2024 | |||||||||||||
| Name | Identification | Fair<br> Value | Fair<br> value<br> level | Book<br> amounts | Book<br> amounts | Position<br> without<br> options | Options | Final <br> position | |||||||
| OTHER DEBT SECURITIES (continued) | |||||||||||||||
| BCRA bills | |||||||||||||||
| BCRA internal bills at benchmark exchange rate, at zero rate – Maturity: 11-18-2024 | 7,716,750 | 1 | 7,716,750 | 11,032,540 | 7,716,750 | 7,716,750 | |||||||||
| BCRA internal bills at benchmark exchange rate, at zero rate – Maturity: 11-20-2024 | 1,543,350 | 1 | 1,543,350 | 2,206,508 | 1,543,350 | 1,543,350 | |||||||||
| BCRA internal bills at benchmark exchange rate, at zero rate – Maturity: 10-03-2024 | 15,322,969 | ||||||||||||||
| BCRA internal bills at benchmark exchange rate, at zero rate – Maturity: 10-19-2024 | 6,129,189 | ||||||||||||||
| BCRA internal bills at benchmark exchange rate, at zero rate – Maturity: 11-15-2024 | 5,025,935 | ||||||||||||||
| BCRA internal bills at benchmark exchange rate, at zero rate – Maturity: 08-06-2024 | 3,432,345 | ||||||||||||||
| BCRA internal bills at benchmark exchange rate, at zero rate – Maturity: 08-08-2024 | 2,942,011 | ||||||||||||||
| BCRA internal bills at benchmark exchange rate, at zero rate – Maturity: 11-13-2024 | 2,574,259 | ||||||||||||||
| BCRA internal bills at benchmark exchange rate, at zero rate – Maturity: 11-18-2024 | 1,225,837 | ||||||||||||||
| BCRA internal bills at benchmark exchange rate, at zero rate – Maturity: 08-03-2024 | 245,168 | ||||||||||||||
| Subtotal BCRA bills | 9,260,100 | 50,136,761 | 9,260,100 | 9,260,100 | |||||||||||
| Private securities | |||||||||||||||
| Corporate bonds Vista Energy Argentina SAU C20 - Maturity: 07-20-2025 (3) | 57081 | 3,085,061 | 1 | 2,730,985 | 3,910,560 | 2,730,985 | 2,730,985 | ||||||||
| Corporate bonds Vista Energy Argentina SAU C13 - Maturity: 08-08-2024 (3) | 56207 | 3,115,895 | 1 | 2,522,895 | 3,607,399 | 2,522,895 | 2,522,895 | ||||||||
| Corporate bonds Vista Oil y Gas Argentina SAU C15 - Maturity: 01-20-2025 (3) | 56637 | 2,527,809 | 1 | 2,325,755 | 3,327,834 | 2,325,755 | 2,325,755 | ||||||||
| Corporate bonds Volkswagen Financial Services C010 - Maturity: 10-12-2024 | 57447 | 1,851,669 | 2 | 1,908,294 | 2,916,794 | 1,908,294 | 1,908,294 | ||||||||
| Corporate bonds SME Liliana SRL Guaranteed S01 - Maturity: 04-18-2025 | 57457 | 472,664 | 2 | 415,629 | 636,921 | 415,629 | 415,629 | ||||||||
| Fiduciary debt securities Secubono Financial Trust S232 CL.A - Maturity: 08-28-2024 | 57664 | 346,831 | 2 | 396,431 | 396,431 | 396,431 | |||||||||
| Fiduciary debt securities Confibono Financial Trust S73 CL.A - Maturity: 05-20-2024 | 57520 | 213,851 | 2 | 201,851 | 719,334 | 201,851 | 201,851 | ||||||||
| Fiduciary debt securities Secubono Financial Trust S231 CL.A - Maturity: 08-28-2024 | 57567 | 111,739 | 2 | 153,580 | 153,580 | 153,580 | |||||||||
| Fiduciary debt securities Secubono Financial Trust S230 CL.A - Maturity: 06-28-2024 | 57480 | 19,274 | 2 | 42,701 | 117,325 | 42,701 | 42,701 | ||||||||
| Fiduciary debt securities Moni Mobile Financial Trust S09 Class A - Maturity: 09-16-2024 | 57474 | 25,075 | 2 | 22,961 | 84,071 | 22,961 | 22,961 | ||||||||
| Other | 8,512 | 87,554 | 8,512 | 8,512 | |||||||||||
| Subtotal local private securities | 10,729,594 | 15,407,792 | 10,729,594 | 10,729,594 | |||||||||||
| Total Other debt securities measured at amortized cost | 161,089,656 | 211,197,843 | 162,125,256 | 162,125,256 | |||||||||||
| TOTAL OTHER DEBT SECURITIES | 404,237,992 | 545,940,484 | 415,787,767 | (363,506,473 | ) | 52,281,294 | |||||||||
| 3) | Fair value obtained from the use of quotes in pesos. | ||||||||||||||
| --- | --- | ||||||||||||||
| 115 | Jorge Pablo Brito<br> Chairperson | ||||||||||||||
| --- | --- | ||||||||||||||
| EXHIBIT A | |||||||||||||||
| --- | |||||||||||||||
| (continued) | |||||||||||||||
| DETAIL OF GOVERNMENT AND PRIVATE SECURITIES | |||||||||||||||
| AS OF MARCH 31, 2024 AND DECEMBER 31, 2023 | |||||||||||||||
| (Translation of the Financial Statements originally issued in Spanish – See Note 41) | |||||||||||||||
| (Figures stated in thousands of pesos in constant currency) | |||||||||||||||
| Holdings | Position | ||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | |||||
| 03/31/2024 | 12/31/2023 | 03/31/2024 | |||||||||||||
| Name | Identification | Fair Value | Fair<br><br> value<br> level | Book amounts | Book amounts | Position without options | Options | Final position | |||||||
| EQUITY<br> INSTRUMENTS | |||||||||||||||
| Measured<br> at fair value through profit or loss | |||||||||||||||
| - Local | |||||||||||||||
| Mercado<br> Abierto Electrónico SA | 3 | 1,669,450 | 2,531,252 | 1,669,450 | 1,669,450 | ||||||||||
| Matba Rofex<br> SA | 30023 | 1 | 456,831 | 633,158 | 456,831 | 456,831 | |||||||||
| C.O.E.L.S.A | 3 | 242,424 | 367,568 | 242,424 | 242,424 | ||||||||||
| AC Inversora<br> SA | 3 | 39,182 | 59,408 | 39,182 | 39,182 | ||||||||||
| Sedesa | 3 | 37,638 | 57,067 | 37,638 | 37,638 | ||||||||||
| Mercado<br> a Término Rosario SA | 3 | 25,702 | 38,970 | 25,702 | 25,702 | ||||||||||
| Provincanje<br> SA | 3 | 15,290 | 23,183 | 15,290 | 15,290 | ||||||||||
| Argencontrol<br> SA | 3 | 856 | 1,298 | 856 | 856 | ||||||||||
| San Juan<br> Tennis Club SA | 3 | 437 | 663 | 437 | 437 | ||||||||||
| Garantizar<br> SGR | 3 | 10 | 15 | 10 | 10 | ||||||||||
| Subtotal<br> local | 2,487,820 | 3,712,582 | 2,487,820 | 2,487,820 | |||||||||||
| - Foreign | |||||||||||||||
| Banco Latinoamericano<br> de Comercio Exterior SA | 80033 | 1 | 185,485 | 221,495 | 185,485 | 185,485 | |||||||||
| Sociedad<br> de Telecomunicaciones Financieras Interbancarias Mundiales | 80034 | 3 | 27,703 | 39,607 | 27,703 | 27,703 | |||||||||
| Subtotal<br> foreign | 213,188 | 261,102 | 213,188 | 213,188 | |||||||||||
| Total<br> measured at fair value through profit or loss | 2,701,008 | 3,973,684 | 2,701,008 | 2,701,008 | |||||||||||
| TOTAL<br> EQUITY INSTRUMENTS | 2,701,008 | 3,973,684 | 2,701,008 | 2,701,008 | |||||||||||
| TOTAL<br> GOVERNMENT AND PRIVATE SECURITIES | 4,316,514,258 | 2,895,905,438 | 4,359,205,731 | (4,105,628,698 | ) | 253,577,033 | |||||||||
| 116 | Jorge Pablo Brito<br> Chairperson | ||||||||||||||
| --- | --- | ||||||||||||||
| EXHIBIT B | |||||||||||||||
| --- | |||||||||||||||
| CLASSIFICATION OF LOANS AND OTHER FINANCING | |||||||||||||||
| BY SITUATION AND COLLATERAL RECEIVED | |||||||||||||||
| AS OF MARCH 31, 2024 AND DECEMBER 31, 2023 | |||||||||||||||
| (Translation of the Financial Statements originally issued in Spanish – See Note 41) | |||||||||||||||
| (Figures stated in thousands of pesos in constant currency) | |||||||||||||||
| COMMERCIAL | 03/31/2024 | 12/31/2023 | |||||||||||||
| --- | --- | --- | --- | --- | |||||||||||
| In normal situation | 762,814,877 | 710,865,991 | |||||||||||||
| With senior “A” collateral and counter-collateral | 60,253,463 | 77,980,434 | |||||||||||||
| With senior “B” collateral and counter-collateral | 69,710,441 | 84,955,184 | |||||||||||||
| Without senior collateral or counter-collateral | 632,850,973 | 547,930,373 | |||||||||||||
| Subject to special monitoring | 2,789,052 | ||||||||||||||
| In observation | |||||||||||||||
| With senior “B” collateral and counter-collateral | 2,788,963 | ||||||||||||||
| Without senior collateral or counter-collateral | 89 | ||||||||||||||
| Troubled | 5,048,101 | 7,217,206 | |||||||||||||
| With senior “B” collateral and counter-collateral | 3,865,735 | 5,526,792 | |||||||||||||
| Without senior collateral or counter-collateral | 1,182,366 | 1,690,414 | |||||||||||||
| With high risk of insolvency | 4,280,950 | ||||||||||||||
| With senior “B” collateral and counter-collateral | 4,112,685 | ||||||||||||||
| Without senior collateral or counter-collateral | 168,265 | ||||||||||||||
| Irrecoverable | 95 | 365,526 | |||||||||||||
| Without senior collateral or counter-collateral | 95 | 365,526 | |||||||||||||
| Subtotal commercial | 770,652,125 | 722,729,673 | |||||||||||||
| 117 | Jorge Pablo Brito<br> Chairperson | ||||||||||||||
| --- | --- | ||||||||||||||
| EXHIBIT B | |||||||||||||||
| --- | |||||||||||||||
| (continued) | |||||||||||||||
| CLASSIFICATION OF LOANS AND OTHER FINANCING | |||||||||||||||
| BY SITUATION AND COLLATERAL RECEIVED | |||||||||||||||
| AS OF MARCH 31, 2024 AND DECEMBER 31, 2023 | |||||||||||||||
| (Translation of the Financial Statements originally issued in Spanish – See Note 41) | |||||||||||||||
| (Figures stated in thousands of pesos in constant currency) | |||||||||||||||
| CONSUMER AND MORTGAGE | 03/31/2024 | 12/31/2023 | |||||||||||||
| --- | --- | --- | --- | --- | |||||||||||
| Performing | 1,455,496,616 | 1,758,285,171 | |||||||||||||
| With senior “A” collateral and counter-collateral | 103,879,765 | 133,684,925 | |||||||||||||
| With senior “B” collateral and counter-collateral | 65,780,154 | 97,738,227 | |||||||||||||
| Without senior collateral or counter-collateral | 1,285,836,697 | 1,526,862,019 | |||||||||||||
| Low risk | 21,294,679 | 14,936,104 | |||||||||||||
| With senior “A” collateral and counter-collateral | 799,509 | 385,553 | |||||||||||||
| With senior “B” collateral and counter-collateral | 1,170,966 | 244,824 | |||||||||||||
| Without senior collateral or counter-collateral | 19,324,204 | 14,305,727 | |||||||||||||
| Low risk - in special treatment | 71,305 | 117,533 | |||||||||||||
| Without senior collateral or counter-collateral | 71,305 | 117,533 | |||||||||||||
| Medium risk | 10,035,089 | 9,983,398 | |||||||||||||
| With senior “A” collateral and counter-collateral | 151,871 | 195,271 | |||||||||||||
| With senior “B” collateral and counter-collateral | 429,478 | 241,123 | |||||||||||||
| Without senior collateral or counter-collateral | 9,453,740 | 9,547,004 | |||||||||||||
| High risk | 7,263,575 | 9,349,704 | |||||||||||||
| With senior “A” collateral and counter-collateral | 100,744 | 274,696 | |||||||||||||
| With senior “B” collateral and counter-collateral | 39,765 | 129,195 | |||||||||||||
| Without senior collateral or counter-collateral | 7,123,066 | 8,945,813 | |||||||||||||
| Irrecoverable | 4,664,382 | 4,586,273 | |||||||||||||
| With senior “A” collateral and counter-collateral | 3,261 | 5,126 | |||||||||||||
| With senior “B” collateral and counter-collateral | 326,065 | 483,935 | |||||||||||||
| Without senior collateral or counter-collateral | 4,335,056 | 4,097,212 | |||||||||||||
| Subtotal consumer and mortgage | 1,498,825,646 | 1,797,258,183 | |||||||||||||
| Total | 2,269,477,771 | 2,519,987,856 | |||||||||||||
| 118 | Jorge Pablo Brito<br> Chairperson | ||||||||||||||
| --- | --- | ||||||||||||||
| EXHIBIT B | |||||||||||||||
| --- | |||||||||||||||
| (continued) | |||||||||||||||
| CLASSIFICATION OF LOANS AND OTHER FINANCING | |||||||||||||||
| BY SITUATION AND COLLATERAL RECEIVED | |||||||||||||||
| AS OF MARCH 31, 2024 AND DECEMBER 31, 2023 | |||||||||||||||
| (Translation of the Financial Statements originally issued in Spanish – See Note 41) | |||||||||||||||
| (Figures stated in thousands of pesos in constant currency) |
This exhibit discloses the contractual figures as established by the BCRA. The reconciliation with the condensed separate interim Statements of financial position is listed below:
| 03/31/2024 | 12/31/2023 | |||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Loans and other financing | 2,130,332,976 | 2,319,119,101 | ||||||||||||||
| Added: | ||||||||||||||||
| Allowances for loans and other financing | 48,376,185 | 54,657,685 | ||||||||||||||
| Adjustment amortized cost and fair value | 5,532,030 | 16,180,970 | ||||||||||||||
| Debt securities of financial trust - Measured at amortized cost | 826,469 | 1,008,496 | ||||||||||||||
| Corporate bonds | 9,927,657 | 14,412,193 | ||||||||||||||
| Subtract: | ||||||||||||||||
| Interest and other accrued items receivable from financial assets with impaired credit value | (845,112 | ) | (810,691 | ) | ||||||||||||
| Guarantees provided and contingent liabilities | 75,327,566 | 115,420,102 | ||||||||||||||
| Total computable items | 2,269,477,771 | 2,519,987,856 | ||||||||||||||
| 119 | Jorge Pablo Brito<br> Chairperson | |||||||||||||||
| --- | --- | |||||||||||||||
| EXHIBIT C | ||||||||||||||||
| --- | ||||||||||||||||
| CONCENTRATION OF LOANS AND FINANCING FACILITIES | ||||||||||||||||
| AS OF MARCH 31, 2024 AND DECEMBER 31, 2023 | ||||||||||||||||
| (Translation of the Financial Statements originally issued in Spanish – See Note 41) | ||||||||||||||||
| (Figures stated in thousands of pesos in constant currency) | ||||||||||||||||
| 03/31/2024 | 12/31/2023 | |||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | ||||||||
| Number of customers | Cut off<br> balance | % of total portfolio | Cut off<br> balance | % of total portfolio | ||||||||||||
| 10 largest customers | 227,761,830 | 10.04 | 197,576,997 | 7.84 | ||||||||||||
| 50 next largest customers | 229,093,051 | 10.09 | 215,207,901 | 8.54 | ||||||||||||
| 100 next largest customers | 143,609,481 | 6.33 | 161,138,382 | 6.39 | ||||||||||||
| Other customers | 1,669,013,409 | 73.54 | 1,946,064,576 | 77.23 | ||||||||||||
| Total (1) | 2,269,477,771 | 100.00 | 2,519,987,856 | 100.00 | ||||||||||||
| (1) | See reconciliation in Exhibit B. | |||||||||||||||
| --- | --- | |||||||||||||||
| 120 | Jorge Pablo Brito<br> Chairperson | |||||||||||||||
| --- | --- | |||||||||||||||
| EXHIBIT D | ||||||||||||||||
| --- | ||||||||||||||||
| BREAKDOWN OF LOANS AND OTHER FINANCING BY TERMS | ||||||||||||||||
| AS OF MARCH 31, 2024 | ||||||||||||||||
| (Translation of the Financial Statements originally issued in Spanish – See Note 41) | ||||||||||||||||
| (Figures stated in thousands of pesos in constant currency) | ||||||||||||||||
| Remaining terms to maturity | ||||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Item | Matured | Up to 1 <br><br>month | Over 1 <br><br>month and <br><br>up to 3 <br><br>months | Over 3 <br><br>months and <br><br>up to 6 <br><br>months | Over 6<br><br> months and <br><br>up to 12 <br><br>months | Over 12 <br><br>months and <br><br>up to 24 <br><br>months | Over 24 <br><br>months | Total | ||||||||
| Non-financial government sector | 623,817 | 1,987,704 | 71,412 | 88,039 | 144,390 | 130,509 | 3,045,871 | |||||||||
| Financial sector | 27,398,022 | 421,988 | 1,220,596 | 3,299,412 | 1,890,185 | 320,326 | 34,550,529 | |||||||||
| Non-financial private sector and foreign residents | 14,864,326 | 967,514,927 | 308,930,341 | 361,543,931 | 402,959,436 | 367,209,658 | 412,465,428 | 2,835,488,047 | ||||||||
| Total | 15,488,143 | 996,900,653 | 309,423,741 | 362,852,566 | 406,403,238 | 369,230,352 | 412,785,754 | 2,873,084,447 |
This exhibit discloses the contractual future cash flows that include interest and charges to be accrued until maturity of the contracts.
| BREAKDOWN OF LOANS AND OTHER FINANCING BY TERMS | ||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| AS OF DECEMBER 31, 2023 | ||||||||||||||||
| (Translation of the Financial Statements originally issued in Spanish – See Note 41) | ||||||||||||||||
| (Figures stated in thousands of pesos in constant currency) | ||||||||||||||||
| Remaining terms to maturity | ||||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Item | Matured | Up to 1<br><br> month | Over 1 <br><br>month and <br><br>up to 3 <br><br>months | Over 3 <br><br>months and <br><br>up to 6 <br><br>months | Over 6 <br><br>months and <br><br>up to 12 <br><br>months | Over 12 <br><br>months and <br><br>up to 24 <br><br>months | Over 24 <br><br>months | Total | ||||||||
| Non-financial government sector | 164 | 4,777,321 | 2,148,952 | 165,600 | 275,969 | 318,501 | 7,686,507 | |||||||||
| Financial sector | 5,580,274 | 566,381 | 3,960,976 | 5,923,761 | 3,236,380 | 1,056,748 | 20,324,520 | |||||||||
| Non-financial private sector and foreign residents | 11,796,997 | 1,153,557,228 | 356,138,337 | 395,197,048 | 430,114,106 | 402,937,217 | 458,649,818 | 3,208,390,751 | ||||||||
| Total | 11,797,161 | 1,163,914,823 | 358,853,670 | 399,323,624 | 436,313,836 | 406,492,098 | 459,706,566 | 3,236,401,778 |
This exhibit discloses the contractual future cash flows that include interest and charges to be accrued until maturity of the contracts.
| 121 | Jorge Pablo Brito<br> Chairperson | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| EXHIBIT F | |||||||||||||
| --- | |||||||||||||
| CHANGE OF PROPERTY, PLANT AND EQUIPMENT | |||||||||||||
| AS OF MARCH 31, 2024 | |||||||||||||
| (Translation of the Financial Statements originally issued in Spanish – See Note 41) | |||||||||||||
| (Figures stated in thousands of pesos in constant currency) | |||||||||||||
| Depreciation<br> of the period | |||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Item | Original<br><br> value at <br><br> beginning of <br><br> fiscal year | Total<br> life <br><br> estimated<br><br> in years | Increases | Decreases | Transfers | Accumulated | Transfers | Decreases | Of<br> the<br><br> period | At<br> the end | Residual<br><br> value at the<br><br> end of the<br><br> period | ||
| Cost | |||||||||||||
| Real<br> property | 453,871,190 | 50 | 568,389 | 1,490,923 | 63,421,935 | 2,558,955 | 65,980,890 | 389,949,612 | |||||
| Furniture<br> and facilities | 74,143,503 | 10 | 367,011 | 1,009,318 | 40,717,627 | 1,509,238 | 42,226,865 | 33,292,967 | |||||
| Machinery<br> and equipment | 114,816,561 | 5 | 4,001,768 | 190,239 | 85,193,015 | 2,882,668 | 88,075,683 | 30,932,885 | |||||
| Vehicles | 15,490,339 | 5 | 519,599 | 179,700 | 11,054,168 | 126,105 | 412,998 | 11,341,061 | 4,489,177 | ||||
| Work<br> in progress | 12,921,573 | 3,141,798 | (2,690,480 | ) | 13,372,891 | ||||||||
| Right<br> of use real property | 41,566,026 | 5 | 2,944,346 | 30,556,950 | (252,599 | ) | 1,959,185 | 32,263,536 | 12,246,836 | ||||
| Right<br> of use furniture | 3,777,820 | 5 | 649,655 | 649,655 | 3,128,165 | ||||||||
| Total<br> property, plant and equipment | 716,587,012 | 11,542,911 | 179,700 | 231,593,350 | (252,599 | ) | 126,105 | 9,323,044 | 240,537,690 | 487,412,533 | |||
| CHANGE OF PROPERTY, PLANT AND EQUIPMENT | |||||||||||||
| --- | |||||||||||||
| AS OF DECEMBER 31, 2023 | |||||||||||||
| (Translation of the Financial Statements originally issued in Spanish – See Note 41) | |||||||||||||
| (Figures stated in thousands of pesos in constant currency) | |||||||||||||
| Depreciation for the fiscal year | |||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Item | Original<br><br> value at<br><br> beginning of <br><br> fiscal year | Total<br> life <br><br> estimated<br><br> in years | Increases | Decreases | Transfers | Accumulated | Transfers | Decreases | For the<br><br> fiscal year | At<br> the end | Residual<br> <br><br> value at the <br><br> end of the <br><br> fiscal year | ||
| Cost | |||||||||||||
| Real<br> property | 449,515,646 | 50 | 2,575,464 | 241,093 | 2,021,173 | 53,506,649 | (217,583 | ) | 41,632 | 10,174,501 | 63,421,935 | 390,449,255 | |
| Furniture<br> and facilities | 69,075,365 | 10 | 2,353,670 | 2,714,468 | 34,836,875 | 2,788 | 5,877,964 | 40,717,627 | 33,425,876 | ||||
| Machinery<br> and equipment | 101,223,977 | 5 | 13,048,467 | 544,117 | 72,282,813 | 1,858 | 12,908,344 | 85,193,015 | 29,623,546 | ||||
| Vehicles | 13,271,513 | 5 | 3,485,208 | 1,252,538 | (13,844 | ) | 10,549,556 | 10,235 | 1,015,738 | 1,510,115 | 11,054,168 | 4,436,171 | |
| Work<br> in progress | 6,121,194 | 13,624,307 | (6,823,928 | ) | 12,921,573 | ||||||||
| Right<br> of use real property | 38,177,575 | 5 | 5,212,996 | 1,831,106 | 6,561 | 25,591,808 | (1,049 | ) | 898,402 | 5,864,593 | 30,556,950 | 11,009,076 | |
| Right<br> of use furniture | 5 | 3,777,820 | 649,655 | 649,655 | 3,128,165 | ||||||||
| Total<br> property, plant and equipment | 677,385,270 | 44,077,932 | 3,324,737 | (1,551,453 | ) | 196,767,701 | (203,751 | ) | 1,955,772 | 36,985,172 | 231,593,350 | 484.993.662 | |
| 122 | Jorge Pablo Brito<br> Chairperson | ||||||||||||
| --- | --- | ||||||||||||
| EXHIBIT F | |||||||||||||
| --- | |||||||||||||
| (continued) | |||||||||||||
| CHANGE IN INVESTMENT PROPERTY | |||||||||||||
| AS OF MARCH 31, 2024 | |||||||||||||
| (Translation of the Financial Statements originally issued in Spanish – See Note 41) | |||||||||||||
| (Figures stated in thousands of pesos in constant currency) | |||||||||||||
| Depreciation of the period | |||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | ||
| Item | Original value at beginning of fiscal year | Total life estimated in years | Increases | Decreases | Transfers | Accumulated | Transfers | Decreases | Of the period | At the end | Residual value at the end of the period | ||
| Cost | |||||||||||||
| Leased properties | 1,872,684 | 50 | 323,563 | 5,871 | 3,243 | 332,677 | 1,540,007 | ||||||
| Other investment properties | 39,645,868 | 50 | 25,547 | 538,990 | 21,362 | 560,352 | 39,111,063 | ||||||
| Total investment property | 41,518,552 | 25,547 | 862,553 | 5,871 | 24,605 | 893,029 | 40,651,070 | ||||||
| CHANGE IN INVESTMENT PROPERTY | |||||||||||||
| --- | |||||||||||||
| AS OF DECEMBER 31, 2023 | |||||||||||||
| (Translation of the Financial Statements originally issued in Spanish – See Note 41) | |||||||||||||
| (Figures stated in thousands of pesos in constant currency) | |||||||||||||
| Depreciation for the fiscal year | |||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | ||
| Item | Original value at beginning of fiscal year | Total life estimated in years | Increases | Decreases | Transfers | Accumulated | Transfers | Decreases | For the fiscal year | At the end | Residual value at the end of the fiscal year | ||
| Cost | |||||||||||||
| Leased properties | 1,872,685 | 50 | (1) | 283,113 | 5,372 | 35,078 | 323,563 | 1,549,121 | |||||
| Other investment properties | 36,164,490 | 50 | 1,706,521 | 169,572 | 1,944,429 | 185,616 | 325,755 | 2,262 | 29,881 | 538,990 | 39,106,878 | ||
| Total investment property | 38,037,175 | 1,706,521 | 169,572 | 1,944,428 | 468,729 | 331,127 | 2,262 | 64,959 | 862,553 | 40,655,999 | |||
| 123 | Jorge Pablo Brito<br> Chairperson | ||||||||||||
| --- | --- | ||||||||||||
| EXHIBIT G | |||||||||||||
| --- | |||||||||||||
| CHANGE IN INTANGIBLE ASSETS | |||||||||||||
| AS OF MARCH 31, 2024 | |||||||||||||
| (Translation of the Financial Statements originally issued in Spanish – See Note 41) | |||||||||||||
| (Figures stated in thousands of pesos in constant currency) | |||||||||||||
| Depreciation of the period | |||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | |
| Item | Original value at beginning of fiscal year | Useful life estimated in years | Increases | Decreases | Transfers | Accumulated | Transfers | Decreases | Ofthe period | At the end | Residual value at the end of the period | ||
| Cost | |||||||||||||
| Licenses | 59,108,221 | 5 | 1,251,568 | 45,698,569 | (5,605 | ) | 2,156,242 | 47,849,206 | 12,510,583 | ||||
| Other intangible assets | 219,476,478 | 5 | 7,976,005 | 146,604,080 | 252,333 | 8,096,874 | 154,953,287 | 72,499,196 | |||||
| Total intangible assets | 278,584,699 | 9,227,573 | 192,302,649 | 246,728 | 10,253,116 | 202,802,493 | 85,009,779 | ||||||
| CHANGE IN INTANGIBLE ASSETS | |||||||||||||
| --- | |||||||||||||
| AS OF DECEMBER 31, 2023 | |||||||||||||
| (Translation of the Financial Statements originally issued in Spanish – See Note 41) | |||||||||||||
| (Figures stated in thousands of pesos in constant currency) | |||||||||||||
| Depreciation for the fiscal year | |||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Item | Original value at beginning of fiscal year | Useful life estimated in years | Increases | Decreases | Transfers | Accumulated | Transfers | Decreases | For the fiscal year | At the end | Residual value at the end of the fiscal year | ||
| Cost | |||||||||||||
| Licenses | 52,701,643 | 5 | 6,407,281 | (703 | ) | 36,905,445 | (1,584 | ) | 8,794,708 | 45,698,569 | 13,409,652 | ||
| Other intangible assets | 182,754,365 | 5 | 36,729,979 | (7,866 | ) | 116,759,132 | 1,666 | 29,843,282 | 146,604,080 | 72,872,398 | |||
| Total intangible assets | 235,456,008 | 43,137,260 | (8,569 | ) | 153,664,577 | 82 | 38,637,990 | 192,302,649 | 86,282,050 | ||||
| 124 | Jorge Pablo Brito<br> Chairperson | ||||||||||||
| --- | --- |
EXHIBIT H
DEPOSIT CONCENTRATION
AS OF MARCH 31, 2024 AND DECEMBER 31, 2023
(Translation of the Financial Statements originally issued in Spanish – See Note 41)
(Figures stated in thousands of pesos in constant currency)
| 03/31/2024 | 12/31/2023 | |||||||
|---|---|---|---|---|---|---|---|---|
| Number of customers | Outstanding<br><br> balance | % of total<br><br> portfolio | Outstanding<br><br> balance | % of total<br><br> portfolio | ||||
| 10 largest customers | 927,135,667 | 21.52 | 416,969,312 | 9.97 | ||||
| 50 next largest customers | 577,513,395 | 13.41 | 376,895,537 | 9.01 | ||||
| 100 next largest customers | 197,231,366 | 4.58 | 185,559,666 | 4.44 | ||||
| Other customers | 2,606,204,390 | 60.49 | 3,204,079,975 | 76.58 | ||||
| Total | 4,308,084,818 | 100.00 | 4,183,504,490 | 100.00 |
| 125 | Jorge Pablo Brito <br> Chairperson |
| --- | --- |
EXHIBIT I
BREAKDOWN OF FINANCIAL LIABILITIES FOR RESIDUAL TERMS
AS OF MARCH 31, 2024
(Translation of the Financial Statements originally issued in Spanish – See Note 41)
(Figures stated in thousands of pesos in constant currency)
| Remaining terms to maturity | ||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Item | Up to 1 month | Over 1 month and up to 3 months | Over 3 months and up to 6 months | Over 6 months and up to 12 months | Over 12 months and up to 24 months | Over 24 months | Total | |||||||
| Deposits | 4,067,465,259 | 169,689,957 | 141,509,550 | 6,637,882 | 423,729 | 9,057 | 4,385,735,434 | |||||||
| From the non-financial government<br> sector | 518,574,391 | 6,527,430 | 2,964,178 | 8,381 | 1,697 | 528,076,077 | ||||||||
| From the financial sector | 8,330,258 | 8,330,258 | ||||||||||||
| From the non-financial private<br> sector and foreign residents | 3,540,560,610 | 163,162,527 | 138,545,372 | 6,629,501 | 422,032 | 9,057 | 3,849,329,099 | |||||||
| Derivative instruments | 122,303 | 26,400 | 148,703 | |||||||||||
| Repo transactions | 21,054,262 | 16,837 | 21,071,099 | |||||||||||
| Other financial institutions | 21,054,262 | 16,837 | 21,071,099 | |||||||||||
| Other financial liabilities | 274,634,255 | 2,235,348 | 1,360,726 | 2,446,589 | 3,913,393 | 14,903,807 | 299,494,118 | |||||||
| Financing received from<br> the BCRA and other financial institutions | 1,705,793 | 3,003,703 | 4,133,499 | 1,980,717 | 10,823,712 | |||||||||
| Issued corporate bonds | 1,132,965 | 14,628,198 | 46,588,500 | 62,349,663 | ||||||||||
| Subordinated corporate bonds | 11,391,638 | 11,391,638 | 22,783,277 | 365,749,957 | 411,316,510 | |||||||||
| Total | 4,366,114,837 | 200,992,081 | 147,003,775 | 69,045,326 | 27,120,399 | 380,662,821 | 5,190,939,239 |
This exhibit discloses contractual future cash flows that include interests and charges to be accrued until maturity of the contracts.
| 126 | Jorge Pablo Brito <br> Chairperson |
| --- | --- |
EXHIBIT I
BREAKDOWN OF FINANCIAL LIABILITIES FOR RESIDUAL TERMS
AS OF DECEMBER 31, 2023
(Translation of the Financial Statements originally issued in Spanish – See Note 41)
(Figures stated in thousands of pesos in constant currency)
| Remaining terms to maturity | ||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Item | Up to 1 month | Over 1 month and up to 3 months | Over 3 months and up to 6 months | Over 6 months and up to 12 months | Over 12 months and up to 24 months | Over 24 months | Total | |||||||
| Deposits | 3,900,494,102 | 231,435,026 | 93,396,445 | 98,439,160 | 714,227 | 22,346 | 4,324,501,306 | |||||||
| From the<br> non-financial government sector | 275,926,064 | 9,260,885 | 7,699,399 | 2,573 | 292,888,921 | |||||||||
| From the<br> financial sector | 11,254,151 | 11,254,151 | ||||||||||||
| From the<br> non-financial private sector and foreign residents | 3,613,313,887 | 222,174,141 | 85,697,046 | 98,439,160 | 711,654 | 22,346 | 4,020,358,234 | |||||||
| Derivative instruments | 19,333 | 90,973 | 3,624 | 113,930 | ||||||||||
| Repo transactions | 35,881,080 | 35,881,080 | ||||||||||||
| Other financial<br> institutions | 35,881,080 | 35,881,080 | ||||||||||||
| Other financial liabilities | 361,485,419 | 1,727,665 | 1,639,472 | 3,246,423 | 5,733,627 | 19,065,129 | 392,897,735 | |||||||
| Financing received from the<br> BCRA and other financial institutions | 5,656,790 | 5,339,457 | 551,053 | 11,547,300 | ||||||||||
| Issued corporate bonds | 76,163 | 22,533,533 | 66,606,982 | 89,216,678 | ||||||||||
| Subordinated corporate bonds | 16,286,479 | 16,286,479 | 32,572,959 | 522,908,033 | 588,053,950 | |||||||||
| Total | 4,303,536,724 | 238,669,284 | 134,410,606 | 184,579,044 | 39,020,813 | 541,995,508 | 5,442,211,979 |
This exhibit discloses contractual future cash flows that include interests and charges to be accrued until maturity of the contracts.
| 127 | Jorge Pablo Brito <br> Chairperson |
| --- | --- |
EXHIBIT J
CHANGES IN PROVISIONS
AS OF MARCH 31, 2024
(Translation of the Financial Statements originally issued in Spanish – See Note 41)
(Figures stated in thousands of pesos in constant currency)
| **** | **** | **** | Decreases | **** | **** | **** | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Item | Amounts at beginning of fiscal year | Increases | Reversals | Charge off | Monetary effects generated by provisions | **** | 03/31/2024 | |||||
| Provisions for eventual commitments | 2,075,697 | 571,413 | (748,610 | ) | 1,898,500 | |||||||
| For administrative, disciplinary and criminal penalties | 758 | (258 | ) | 500 | ||||||||
| Other | 6,826,336 | 2,830,188 | 393,548 | (2,409,779 | ) | 6,853,197 | ||||||
| Total provisions | 8,902,791 | 3,401,601 | 393,548 | (3,158,647 | ) | 8,752,197 |
CHANGES IN PROVISIONS
AS OF DECEMBER 31, 2023
(Translation of the Financial Statements originally issued in Spanish – See Note 41)
(Figures stated in thousands of pesos in constant currency)
| **** | **** | **** | Decreases | **** | **** | **** | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Item | Amounts at beginning of fiscal year | Increases | Reversals | Charge off | Monetary effects generated by provisions | **** | 12/31/2023 | ||||||
| Provisions for eventual commitments | 3,241,508 | 1,554,647 | (2,720,458 | ) | 2,075,697 | ||||||||
| For administrative, disciplinary and criminal penalties | 2,364 | (1,606 | ) | 758 | |||||||||
| Other | 9,517,895 | 10,623,397 | 85,239 | 4,519,793 | (8,709,924 | ) | 6,826,336 | ||||||
| Total provisions | 12,761,767 | 12,178,044 | 85,239 | 4,519,793 | (11,431,988 | ) | 8,902,791 |
| 128 | Jorge Pablo Brito <br> Chairperson |
| --- | --- |
EXHIBIT K
COMPOSITION OF CAPITAL STOCK
AS OF MARCH 31, 2024
(Translation of the Financial Statements originally issued in Spanish – See Note 41)
(Figures stated in thousands of pesos in constant currency)
| Shares | Capital Stock | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Class | Stock number | Face value | Votes per <br><br>share | Issued<br><br> outstanding | Paid in | |||||
| Registered common stock A | 11,235,670 | 1 | 5 | 11,236 | 11,236 | |||||
| Registered common stock B | 628,177,738 | 1 | 1 | 628,177 | 628,177 | |||||
| Total | 639,413,408 | 639,413 | 639,413 |
COMPOSITION OF CAPITAL STOCK
AS OF DECEMBER 31, 2023
(Translation of the Financial Statements originally issued in Spanish – See Note 41)
(Figures stated in thousands of pesos in constant currency)
| Shares | Capital Stock | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Class | Stock number | Face value | Votes per <br><br>share | Issued<br><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 |
| 129 | Jorge Pablo Brito <br> Chairperson |
| --- | --- |
EXHIBIT L
FOREIGN CURRENCY AMOUNTS
AS OF MARCH 31, 2024 AND DECEMBER 31, 2023
(Translation of the Financial Statements originally issued in Spanish – See Note 41)
(Figures stated in thousands of pesos in constant currency)
| **** | 03/31/2024 | 12/31/2023 | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total per currency | ||||||||||||
| Item | Total parent company and local branches | US dollar | Euro | Real | Other | Total | ||||||
| Assets | ||||||||||||
| Cash and deposits in banks | 736,118,399 | 728,684,892 | 3,957,630 | 198,400 | 3,277,477 | 1,315,051,895 | ||||||
| Debt securities at fair value through profit or loss (1) | 25,129,494 | 25,129,494 | 2,335,430,362 | |||||||||
| Other financial assets | 52,148,591 | 52,146,824 | 1,767 | 78,622,911 | ||||||||
| Loans and other financing | 406,360,507 | 403,552,431 | 225,816 | 2,582,260 | 196,682,740 | |||||||
| Other financial institutions | 12,869,744 | 12,869,744 | ||||||||||
| From the non-financial private sector and foreign residents | 393,490,763 | 390,682,687 | 225,816 | 2,582,260 | 196,682,740 | |||||||
| Other debt securities | 16,866,568 | 16,866,568 | 61,010,552 | |||||||||
| Financial assets delivered as guarantee | 18,181,192 | 18,181,192 | 66,921,901 | |||||||||
| Equity instruments at fair value through profit or loss | 213,188 | 213,188 | 261,102 | |||||||||
| Investments in subsidiaries, associates and joint ventures | 32,074,175 | 32,074,175 | 41,511,635 | |||||||||
| Total assets | 1,287,092,114 | 1,276,848,764 | 4,185,213 | 198,400 | 5,859,737 | 4,095,493,098 | ||||||
| Liabilities | ||||||||||||
| Deposits | 824,651,027 | 824,651,027 | 1,103,526,808 | |||||||||
| Non-financial government sector | 20,913,252 | 20,913,252 | 52,057,160 | |||||||||
| Financial sector | 7,536,284 | 7,536,284 | 10,774,296 | |||||||||
| Non-financial private sector and foreign residents | 796,201,491 | 796,201,491 | 1,040,695,352 | |||||||||
| Other financial liabilities | 48,355,682 | 46,604,846 | 1,299,107 | 451,729 | 61,849,556 | |||||||
| Financing from the BCRA and other financial institutions | 10,686,193 | 7,877,999 | 225,934 | 2,582,260 | 11,356,338 | |||||||
| Issued corporate bonds | 60,842,410 | 60,842,410 | 86,062,071 | |||||||||
| Subordinated corporate bonds | 354,537,635 | 354,537,635 | 499,037,547 | |||||||||
| Other non-financial liabilities | 3,571,330 | 3,571,330 | 5,560,925 | |||||||||
| Total liabilities | 1,302,644,277 | 1,298,085,247 | 1,525,041 | 3,033,989 | 1,767,393,245 | |||||||
| (1) | Mainly including Argentine government discount bonds in dual currency for 3,283,417 and Argentine government<br>Treasury bonds tied to the US dollar for 1,854,475. | |||||||||||
| --- | --- |
| 130 | Jorge Pablo Brito <br> Chairperson |
| --- | --- |
EXHIBIT O
DERIVATIVE FINANCIAL INSTRUMENTS8
AS OF MARCH 31, 2024
(Translation of the Financial Statements originally issued in Spanish – See Note 41)
(Figures stated in thousands of pesos in constant currency)
| Type of contract | Purpose of the<br> transactions performed | Underlying<br> asset | Type of<br> settlement | Negotiation<br> environment <br> or counter-<br> party | Originally<br> agreed<br> weighted<br> average term<br> (months) | Residual<br> weighted<br> average <br> term<br> (months) | Weighted<br> daily<br> average<br> term<br> settlement<br> of <br> differences<br> (days) | Amount (1) |
|---|---|---|---|---|---|---|---|---|
| Futures (2) | Intermediation - own<br> account | Foreign currency | Daily settlement of differences | ROFEX (over-the-counter electronic market) | 1 | 1 | 1 | 5,463,288 |
| Forward (2) | Intermediation - own account | Foreign currency | Maturity settlement of differences | Over The Counter - Residents in Argentina – Non-financial sector | 2 | 1 | 30 | 7,960,888 |
| Repo transactions | Intermediation - own account | Local government securities | With delivery of underlying asset | Other local markets | 1 | 1 | 288,346,463 | |
| Options | Intermediation - own account | Other | With delivery of underlying asset | Over The Counter – Residents in Argentina – Non-financial sector | 30 | 7 | 11,773,752 | |
| Options (3) | Intermediation - own account | Local government securities | With delivery of underlying asset | Over The Counter – Residents in Argentina - financial sector | 28 | 26 | 4,105,628,698 | |
| (1) | Related to the valuation of the underlying traded, disclosed in absolute values. | |||||||
| --- | --- | |||||||
| (2) | Related to compensated operations forward (OCT). | |||||||
| (3) | See Note 5 and Note 9 to the condensed consolidated interim Financial Statements. |
| 131 | Jorge Pablo Brito <br> Chairperson |
| --- | --- |
EXHIBIT Q
BREAKDOWN OF STATEMENT OF INCOME
FOR THE THREE MONTH PERIODS ENDED MARCH 31, 2024 AND 2023
(Translation of the Financial Statements originally issued in Spanish – See Note 41)
(Figures stated in thousands of pesos in constant currency)
| **** | Net financial Income / (Loss) | **** | ||||
|---|---|---|---|---|---|---|
| **** | Mandatory measurement | **** | ||||
| Item | Quarter ended 03/31/2024 | **** | Quarterended 03/31/2023 | **** | ||
| For measurement of financial assets at fair value through profit or loss | ||||||
| Gain from government securities | 1,170,911,886 | 23,287,505 | ||||
| (Loss) / gain from private securities | (930,731 | ) | 836,868 | |||
| Gain from derivative financial instruments | ||||||
| Forward transactions | 66,756 | 754,331 | ||||
| Gain / (loss) from other financial assets | 101,210 | (57,759 | ) | |||
| Gain from equity instruments at fair value through profit or loss | 34,978 | 197,156 | ||||
| Loss from sales or decreases of financial assets at fair value (1) | (14,300,883 | ) | (2,258,996 | ) | ||
| For measurement of financial liabilities at fair value through profit or loss | ||||||
| Loss from derivative financial instruments | ||||||
| Options | (7,238,606 | ) | (1,617,179 | ) | ||
| Total | 1,148,644,610 | 21,141,926 | ||||
| (1) | Net amount of reclassifications to profit of instruments classified<br>at fair value through other comprehensive income that were derecognized or charged during the period. | |||||
| --- | --- |
| 132 | Jorge Pablo Brito <br> Chairperson |
| --- | --- |
EXHIBIT Q
(continued)
BREAKDOWN OF STATEMENT OF INCOME
FOR THE THREE MONTH PERIODS ENDED MARCH 31, 2024 AND 2023
(Translation of the Financial Statements originally issued in Spanish – See Note 41)
(Figures stated in thousands of pesos in constant currency)
| **** | Net financial Income / (Loss) | **** | ||
|---|---|---|---|---|
| Interest and adjustment for the application of the effective interest rate of financial assets and financial liabilities measured at amortized cost | Quarter ended 03/31/2024 | **** | Quarter ended 03/31/2023 | **** |
| Interest income | ||||
| for cash and bank deposits | 3,128,009 | 2,134,741 | ||
| for government securities | 29,129,242 | 431,531,876 | ||
| for private securities | 976,598 | 380,710 | ||
| for loans and other financing | ||||
| Non-financial public sector | 1,666,183 | 1,501,473 | ||
| Financial sector | 854,329 | 412,896 | ||
| Non-financial private sector | ||||
| Overdrafts | 47,768,677 | 36,223,795 | ||
| Documents | 52,823,521 | 35,113,186 | ||
| Mortgage loans | 98,399,630 | 42,681,516 | ||
| Pledge loans | 3,142,762 | 3,110,065 | ||
| Personal loans | 66,151,143 | 100,643,359 | ||
| Credit cards | 59,840,078 | 70,542,157 | ||
| Financial leases | 159,888 | 446,939 | ||
| Other | 64,482,663 | 42,972,372 | ||
| for repo transactions | ||||
| Central Bank of Argentina | 124,572,791 | 26,036,407 | ||
| Other financial institutions | 64,231 | 59,158 | ||
| Total | 553,159,745 | 793,790,650 | ||
| Interest expenses | ||||
| for Deposits | ||||
| Non-financial private sector | ||||
| Checking accounts | (50,496,510 | ) | (22,924,336 | ) |
| Saving accounts | (11,965,885 | ) | (4,969,041 | ) |
| Time deposits and investments accounts | (399,415,904 | ) | (467,687,292 | ) |
| for Financing received from the BCRA and other financial institutions | (727,810 | ) | (823,757 | ) |
| for repo transactions | ||||
| Other financial institutions | (4,109,022 | ) | (4,810,625 | ) |
| for other financial liabilities | (110,545 | ) | (154,935 | ) |
| for issued corporate bonds | (769,545 | ) | (62,347 | ) |
| for other subordinated corporate bonds | (6,034,948 | ) | (5,211,035 | ) |
| Total | (473,630,169 | ) | (506,643,368 | ) |
| 133 | Jorge Pablo Brito <br> Chairperson |
| --- | --- |
EXHIBIT Q
(continued)
BREAKDOWN OF STATEMENT OF INCOME
FOR THE THREE MONTH PERIODS ENDED MARCH 31, 2024 AND 2023
(Translation of the Financial Statements originally issued in Spanish – See Note 41)
(Figures stated in thousands of pesos in constant currency)
| Interest and adjustment for the application of the effective interest rate of financial assets | Income of the period | Other comprehensive income | Income of the period | Other comprehensive income | **** | ||||
|---|---|---|---|---|---|---|---|---|---|
| measured at fair value through other comprehensive income | Quarter ended 03/31/2024 | Quarter ended 03/31/2024 | Quarter ended 03/31/2023 | Quarter ended 03/31/2023 | **** | ||||
| for debt government securities | 59,566,576 | 622,844 | 90,971,031 | (7,434,816 | ) | ||||
| Total | 59,566,576 | 622,844 | 90,971,031 | (7,434,816 | ) | ||||
| Income of the period | |||||||||
| --- | --- | --- | --- | --- | --- | --- | |||
| Item | Quarter ended 03/31/2024 | **** | Quarter ended 03/31/2023 | **** | |||||
| Commissions income | |||||||||
| Commissions related to obligations | 41,431,791 | 52,980,891 | |||||||
| Commissions related to credits | 747,587 | 304,804 | |||||||
| Commissions related to loans commitments and financial guarantees | 1,248 | 6,982 | |||||||
| Commissions related to securities value | 960,051 | 787,753 | |||||||
| Commissions to credit cards | 24,594,747 | 31,345,632 | |||||||
| Commissions to insurances | 3,255,766 | 5,078,375 | |||||||
| Commissions related to trading and foreign exchange transactions | 2,406,342 | 2,070,270 | |||||||
| Total | 73,397,532 | 92,574,707 | |||||||
| Commissions expenses | |||||||||
| Commissions related to trading and foreign exchange transactions | (399,103 | ) | (400,596 | ) | |||||
| Other | |||||||||
| Commissions paid ATM exchange | (3,072,704 | ) | (4,053,738 | ) | |||||
| Checkbooks commissions and clearing houses | (1,682,792 | ) | (1,843,311 | ) | |||||
| Credit cards and foreign trade commissions | (658,443 | ) | (833,559 | ) | |||||
| Total | (5,813,042 | ) | (7,131,204 | ) |
| 134 | Jorge Pablo Brito <br> Chairperson |
| --- | --- |
EXHIBIT R
VALUE ADJUSTMENT FOR CREDIT LOSSES - ALLOWANCES FOR UNCOLLECTIBILITY RISK
AS OF MARCH 31, 2024
(Translation of the Financial Statements originally issued in Spanish – See Note 41)
(Figures stated in thousands of pesos in constant currency)
| **** | **** | Movements between stages of the period | **** | **** | **** | **** | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| **** | **** | **** | **** | ECL of remaining life of financial asset | **** | **** | **** | **** | ||||||||
| Item | Amounts at beginning of the fiscal year | ECL of the next 12 months | **** | Financial instruments with a significant increase in credit risk | **** | Financial instruments with impairment | **** | Monetary effect generated by allowances | **** | 03/31/2024 | ||||||
| Other financial assets | 656,513 | (102,717 | ) | (213,120 | ) | 340,676 | ||||||||||
| Loans and other financing | 54,657,685 | 4,968,282 | 4,508,433 | 4,239,232 | (19,997,447 | ) | 48,376,185 | |||||||||
| Other financial institutions | 33,789 | (1,307 | ) | 27 | (11,375 | ) | 21,134 | |||||||||
| To the non-financial private sector and foreign residents | ||||||||||||||||
| Overdrafts | 3,776,331 | 1,123,172 | 208,195 | 167,165 | (1,437,401 | ) | 3,837,462 | |||||||||
| Documents | 4,832,532 | 1,545,135 | 128,812 | (3,714 | ) | (1,814,380 | ) | 4,688,385 | ||||||||
| Mortgage loans | 7,179,127 | 295,155 | 640,304 | 441,969 | (2,583,674 | ) | 5,972,881 | |||||||||
| Pledge loans | 530,287 | 74,880 | (15,828 | ) | 16,358 | (188,178 | ) | 417,519 | ||||||||
| Personal loans | 14,610,125 | 558,285 | 1,074,528 | 1,269,114 | (5,267,987 | ) | 12,244,065 | |||||||||
| Credit cards | 15,573,702 | 237,986 | 2,172,466 | 2,146,071 | (5,763,544 | ) | 14,366,681 | |||||||||
| Financial leases | 40,139 | (6,568 | ) | 1,680 | (13,171 | ) | 22,080 | |||||||||
| Other | 8,081,653 | 1,141,544 | 298,249 | 202,269 | (2,917,737 | ) | 6,805,978 | |||||||||
| Eventual commitments | 2,075,697 | 397,149 | 191,992 | (766,338 | ) | 1,898,500 | ||||||||||
| Other debt securities | 12,897 | 17,831 | (6,196 | ) | 24,532 | |||||||||||
| Total allowances | 57,402,792 | 5,280,545 | 4,700,425 | 4,239,232 | (20,983,101 | ) | 50,639,893 |
VALUE ADJUSTMENT FOR CREDIT LOSSES - ALLOWANCES FOR UNCOLLECTIBILITY RISK
AS OF DECEMBER 31, 2023
(Translation of the Financial Statements originally issued in Spanish – See Note 41)
(Figures stated in thousands of pesos in constant currency)
| **** | **** | Movements between stages for the fiscal year | **** | **** | **** | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| **** | **** | **** | **** | ECL of remaining life of financial asset | **** | **** | **** | |||||||
| Item | Amounts at beginning of the fiscal year | ECL of the next 12 months | **** | Financial instruments with a significant increase in credit risk | Financial instruments with impairment | Monetary effect generated by allowances | **** | 12/31/2023 | ||||||
| Other financial assets | 429,859 | 700,523 | (473,869 | ) | 656,513 | |||||||||
| Loans and other financing | 51,890,031 | 26,568,162 | 10,830,711 | 23,952,596 | (58,583,815 | ) | 54,657,685 | |||||||
| Other financial institutions | 38,439 | 48,912 | (53,562 | ) | 33,789 | |||||||||
| To the non-financial private sector and foreign residents | ||||||||||||||
| Overdrafts | 2,487,030 | 3,032,585 | 439,570 | 1,295,817 | (3,478,671 | ) | 3,776,331 | |||||||
| Documents | 2,647,291 | 3,465,979 | 1,650,994 | 1,193,107 | (4,124,839 | ) | 4,832,532 | |||||||
| Mortgage loans | 5,637,220 | (272,058 | ) | 1,434,363 | 6,173,273 | (5,793,671 | ) | 7,179,127 | ||||||
| Pledge loans | 895,403 | (36,389 | ) | 371,277 | 40,025 | (740,029 | ) | 530,287 | ||||||
| Personal loans | 19,583,710 | 8,152,185 | 770,909 | 5,853,598 | (19,750,277 | ) | 14,610,125 | |||||||
| Credit cards | 13,058,990 | 8,681,049 | 2,499,725 | 8,033,619 | (16,699,681 | ) | 15,573,702 | |||||||
| Financial leases | 102,157 | (15,362 | ) | 20,229 | 20,575 | (87,460 | ) | 40,139 | ||||||
| Other | 7,439,791 | 3,511,261 | 3,643,644 | 1,342,582 | (7,855,625 | ) | 8,081,653 | |||||||
| Eventual commitments | 3,241,508 | 1,628,026 | 39,373 | (2,833,210 | ) | 2,075,697 | ||||||||
| Other debt securities | 3,755 | 19,079 | (9,937 | ) | 12,897 | |||||||||
| Total allowances | 55,565,153 | 28,915,790 | 10,870,084 | 23,952,596 | (61,900,831 | ) | 57,402,792 |
| 135 | Jorge Pablo Brito <br> Chairperson |
| --- | --- |
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereto duly authorized.
Date: August 1, 2024
| MACRO BANK INC. | |
|---|---|
| By: | /s/ Jorge Francisco Scarinci |
| Name: Jorge Francisco Scarinci | |
| Title: Chief Financial Officer |