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Macro Bank Inc 6-K, filed Aug 26, 2021

Macro Bank Inc. (BMA)

6-K 2021-08-26 For: 2021-08-25
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Added on April 10, 2026

About this 6-K

Macro Bank Inc filed this 6-K on August 26, 2021.

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 25, 2021

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 o

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

Yes o No x

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

Yes o No x

BancoMacro Announces Results for the Second Quarter of 2021

Buenos Aires, Argentina, August 25, 2021 – Banco Macro S.A. (NYSE: BMA; BYMA: BMA) (“Banco Macro” or “BMA” or the “Bank”) announced today its results for the second quarter ended June 30, 2021 (“2Q21”). All figures are in Argentine pesos (Ps.) and have been restated in terms of the measuring unit current at the end of the reporting period. As of 1Q20, the Bank began reporting results applying Hyperinflation Accounting, in accordance with IFRS IAS 29 as established by the Central Bank. For ease of comparison, figures of previous quarters of 2020 have been restated applying IAS 29 to reflect the accumulated effect of the inflation adjustment for each period through June 30, 2021.

Summary

• The Bank’s net income totaledPs.4.6 billion in 2Q21. This result was 90% higher than the result posted in 1Q21 and 50% lower than in 2Q20. In 2Q21, the accumulatedannualized return on average equity (“ROAE”) and the annualized return on average assets (“ROAA”) were 7.8% and1.7%, respectively. Total comprehensive income was Ps.4.8 billion, 57% higher than in 1Q21

• In 2Q21, Banco Macro’sfinancing to the private sector decreased 7% or Ps.20 billion quarter over quarter (“QoQ”) totaling Ps.267.8 billion and19% or Ps.61.7. billion year over year (“YoY”).

• In 2Q21, Banco Macro’stotal deposits decreased 3% or Ps.15.1 billion QoQ, totaling Ps.492.3 billion and representing 78% of the Bank’s total liabilities.Private sector deposits decreased 1% or Ps.5.2 billion QoQ.

• Banco Macro continued showinga strong solvency ratio, with an excess capital of Ps.167 billion, 38.3% regulatory capital ratio – Basel III and 30.9% Tier 1Ratio. In addition, the Bank’s liquid assets remained at an adequate level, reaching 93% of its total deposits in 2Q21.

• In 2Q21, the Bank’s non-performingto total financing ratio was 1.68% and the coverage ratio reached 212.91%.

2Q21 Earnings Release Conference Call **** IR Contacts in Buenos Aires:
Thursday, August 26, 2021 Jorge Scarinci
**Time: 11:00 a.m. Eastern Time 12:00 p.m. Buenos Aires Time** Chief Financial Officer
To participate, please dial: Nicolás A. Torres
Argentina Toll Free: Investor Relations
(011) 3984 5677
Participants Dial In (Toll Free): Webcast Replay: click here
+1 (844) 450 3847 Phone: (54 11) 5222 6682
Participants International Dial In: Available from 08/26/2021 through 09/09/2021 E-mail: investorelations@macro.com.ar
+1 (412) 317 6370
Conference ID: Banco Macro Visit our website at:
Webcast: click here www.macro.com.ar/relaciones-inversores 
**2**

Disclaimer

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

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

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

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

**3**

This Earnings Release has been prepared inaccordance with the accounting framework established by the Central Bank of Argentina (“BCRA”), based on International FinancialReporting Standards (“I.F.R.S.”) and the resolutions adopted by the International Accouting Standards Board (“I.A.S.B”)and by the Federación Argentina de Consejos Profesionales de Ciencias Económicas (“F.A.C.P.E.”). As of January2020 the Bank started reporting with the application of (i) Expected losses of IFRS 9 “Financial Instruments” and (ii) IAS29 “Financial Reporting in Hyperinflationary Economies”. Data and figures shown in this Earnings Release may differ fromthe ones shown in the 20-F annual report. As of fiscal year 2021, the monetary result accrued by items of a monetary nature measuredat fair value with changes in Other Comprehensive Income (OCI), is recorded in the Result form the Net Monetary Position integratingthe Net Result of the period in accordance with Communication “A” 7211 of the Central Bank of Argentina. Previous quartersof 2020 have been restated in accordance with said Communication in order to make a comparison possible.

Results

Earnings per outstanding share were Ps.7.22 in 2Q21, 90% higher than in 1Q21 and 50% lower than the result posted a year ago.

EARNINGS<br> PER SHARE Change ****
In MILLION<br> (Measuring Unit Current at EOP) 3Q20 4Q20 1Q21 2Q21 QoQ **** YoY ****
Net income -Parent Company- (M ) 9,161 6,743 3,976 2,427 4,617 90 % -50 %
Average # of shares outstanding (M) 639 639 639 639 639 0 % 0 %
Average #of treasury stocks (shares repurchased) 0 0 0 - - - -100 %
Book value per avg. Outstanding share () 280 292 290 295 286 -3 % 2 %
Shares Outstanding (M) 639 639 639 639 639 0 % 0 %
Earnings per avg.  outstanding share () 14.33 10.55 6.22 3.80 7.22 90 % -50 %
EOP FX (Pesos per ) 70.4550 76.1750 84.1450 91.9850 95.7267 4 % 36 %
Book value per avg. issued ADS () 39.74 38.33 34.46 32.07 29.88 -7 % -25 %
Earnings per avg. outstanding ADS () 2.03 1.39 0.74 0.41 0.75 83 % -63 %

All values are in US Dollars.

Banco Macro’s 2Q21 net income of Ps.4.6 billion was 90% or Ps.2.2 billion higher than the previous quarter and 50% or Ps.4.5 billion lower YoY. This result represented an annualized ROAE and ROAA of 7.8% and 1.7% respectively. Total comprehensive income was Ps.4.8 billion, 57% or Ps.1.8 billion higher than in 1Q21 and 54% or Ps.5.7 billion lower than the same period of last year.

Net operating income (before G&A and personnel expenses) was Ps.39.4 billion in 2Q21, decreasing 5% or Ps.1.9 billion compared to 1Q21. On a yearly basis Net operating income decreased 1% or Ps.355 million due to lower net interest income and lower net fee income.

In 2Q21 Provision for loan losses totaled Ps.213 million, Ps.211 million higher than in 1Q21. It should be noted that in previous quarters loan loss provisions were explained by additional provisions made by the Bank based on estimations of the macroeconomic impact of the current Covid-19 pandemic.

Operating income (after G&A and personnel expenses) was Ps.19.4 billion in 2Q21, 7% or Ps.1.6 billion lower than in 1Q21 and 1% or Ps.178 million higher than a year ago.

It is important to emphasize that this result was obtained with a leverage of only 4.4x assets to equity ratio.

**4**

INCOME STATEMENT MACRO Consolidated Change
In MILLION $ (Measuring Unit Current at EOP) 2Q20 3Q20 4Q20 1Q21 2Q21 QoQ YoY
Net Interest Income 30,102 29,521 27,283 26,439 25,482 -4 % -15 %
Net fee income 6,982 7,354 7,093 6,578 6,764 3 % -3 %
Net Interest Income + Net Fee Income 37,084 36,875 34,376 33,017 32,246 -2 % -13 %
Net Income from financial instruments<br>  at fair value through P&L 3,409 3,767 4,114 5,061 5,282 4 % 55 %
Income from assets at amortized cost 28 85 157 66 61 -8 % 118 %
Differences in quoted prices of gold<br>  and foreign currency 1,180 1,684 1,594 1,349 640 -53 % -46 %
Other operating income 1,598 1,648 1,744 1,830 1,409 -23 % -12 %
Provision for loan losses 3,519 2,441 2,706 2 213 10550 % -94 %
Net Operating Income 39,780 41,618 39,279 41,321 39,425 -5 % -1 %
Employee benefits 8,613 8,649 8,593 8,053 8,395 4 % -3 %
Administrative expenses 4,362 4,743 4,884 3,788 3,887 3 % -11 %
Depreciation and impairment of assets 1,383 1,417 1,395 1,429 1,434 0 % 4 %
Other operating expenses 6,158 6,400 6,253 7,054 6,267 -11 % 2 %
Operating Income 19,264 20,409 18,154 20,997 19,442 -7 % 1 %
Result from associates & joint ventures 12 21 -74 26 19 -27 % 58 %
Result from net monetary postion -6,203 -9,272 -13,332 -16,025 -13,557 -15 % 119 %
Result before taxes from continuing operations 13,073 11,158 4,748 4,998 5,904 18 % -55 %
Income tax 3,912 4,415 772 2,571 1,287 -50 % -67 %
Net income from continuing operations 9,161 6,743 3,976 2,427 4,617 90 % -50 %
- -
Net Income of the period 9,161 6,743 3,976 2,427 4,617 90 % -50 %
Net income of the period attributable<br>  to parent company 9,161 6,743 3,976 2,427 4,617 90 % -50 %
Net income of the period attributable<br>  to minority interest - - - - - - -
Other Comprehensive Income 1,366 1,064 -149 652 213 -67 % -84 %
Foreign currency translation differences in<br> financial statements conversion 117 72 -28 -108 -200 - -
Profits or losses from financial assets measured<br> at fair value  through other comprehensive income<br> (FVOCI)  (IFRS 9(4.1.2)(a) 1,249 992 -121 760 413 - -
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD 10,527 7,807 3,827 3,079 4,830 57 % -54 %
Total Comprehensive Income attributable<br> to parent Company 10,527 7,807 3,827 3,079 4,830 57 % -54 %
Total Comprehensive Income attributable<br> to non-controlling interests - - - - - - -

The Bank’s 2Q21 net interest income totaled Ps.25.5 billion, 4% or Ps.957 million lower than in 1Q21 and 15% or Ps.4.6 billion lower YoY as a result of different regulations adopted that set caps on lending rates and floors on deposit rates.

In 2Q21 interest income totaled Ps.44.3 billion, 12% or Ps.5.8 billion lower than in 1Q21 and Ps.215 million lower than in 2Q20.

Income from interest on loans and other financing totaled Ps.23.1 billion, 7% or Ps.1.7 billion lower compared with the previous quarter. On a yearly basis Income from interest on loans decreased 15% or Ps.4 billion.

In 2Q21 income from government and private securities decreased 14% or Ps.3.2 billion QoQ (due to lower income from Government securities) and increased 30% or Ps.4.6 billion compared with the same period of last year. This result is explained 93% by income from government and private securities through other comprehensive income (Leliqs and Other government securities) and the remaining 7% is explained by income from sovereign bonds in pesos at amortized cost.

In 2Q21 income from Repos totaled Ps.1.4 billion, 41% or Ps.1 billion lower than the previous quarter and 38% or Ps.843 million lower than a year ago.

**5**

In 2Q21 FX income totaled Ps.640 million, 53% or Ps.709 million lower than the previous quarter and 46% or Ps.540 million lower than a year ago. FX income gain was due to the 4% argentine peso depreciation against the US dollar, the Bank’s long spot dollar position during the quarter and FX trading results.

FX INCOME MACRO Consolidated Variation
In MILLION $ (Measuring Unit Current at EOP) 2Q20 1Q21 2Q21 QoQ YoY
(1) Differences in quoted prices of<br>  gold and foreign currency 1,180 1,349 640 -53 % -46 %
Translation of FX assets and liabilities to Pesos 953 1,214 575 -53 % -40 %
Income from foreign currency exchange 227 135 65 -52 % -71 %
(2) Net Income from financial assets and<br> liabilities at fair value through P&L 29 0 0 -100 % -100 %
Income from investment in derivative<br>           financing instruments 29 0 0 - -100 %
(1) +(2) Total Result from Differences in quoted<br> prices of gold and foreign currency 1,209 1,349 640 -53 % -47 %
INTEREST INCOME MACRO<br> Consolidated Change
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
In MILLION $ (Measuring Unit Current at EOP) 2Q20 3Q20 4Q20 1Q21 2Q21 QoQ YoY
Interest on Cash and<br> due from Banks 21 40 3 3 3 0 % -86 %
Interest from government securities 14,636 23,207 24,225 22,822 19,702 -14 % 35 %
Interest from private securities 520 368 203 114 65 -43 % -88 %
Interest on loans and other financing
To<br> the financial sector 375 274 220 186 132 -29 % -65 %
To<br> the public non financial sector 934 810 618 512 408 -20 % -56 %
Interest<br> on overdrafts 3,947 1,915 1,721 1,883 1,455 -23 % -63 %
Interest<br> on documents 1,371 1,112 1,466 1,536 1,640 7 % 20 %
Interest<br> on mortgages loans 2,240 2,165 2,870 3,388 3,395 0 % 52 %
Interest<br> on pledged loans 145 147 136 123 145 18 % 0 %
Interest<br> on personal loans 10,473 9,984 9,973 10,259 9,898 -4 % -5 %
Interest<br> on credit cards loans 3,425 3,495 3,175 3,012 2,880 -4 % -16 %
Interest<br> on financial leases 17 7 12 24 16 -33 % -6 %
Interest<br> on other loans 4,160 4,869 4,379 3,852 3,153 -18 % -24 %
Interest on Repos
From<br> the BCRA 2,201 2,922 3,104 2,305 1,343 -42 % -39 %
Other<br> financial institutions 1 14 38 16 16 0 % 1500 %
Total Interest income 44,466 51,329 52,143 50,035 44,251 -12 % 0 %
Income from Interest on loans 27,087 24,778 24,570 24,775 23,122 -7 % -15 %

The Bank’s 2Q21 interest expense totaled Ps.18.8 billion, decreasing 20% or Ps.4.8 billion compared to the previous quarter and 31% or Ps.4.4 billion higher compared to 2Q20.

In 2Q21, interest on deposits represented 95% of the Bank’s total interest expense, decreasing 20% or Ps.4.5 billion QoQ, due to a 16% decrease in the average volume of deposits from the private sector and a 129 b.p. decrease in the average rate paid on deposits. On a yearly basis, interest on deposits increased 37% or Ps.4.8 billion.

**6**

INTEREST EXPENSE MACRO Consolidated Change
In MILLION $ (Measuring Unit Current at EOP) 2Q20 3Q20 4Q20 1Q21 2Q21 QoQ YoY
Deposits
Interest on checking accounts 167 591 1,528 806 79 -90 % -53 %
Interest on saving accounts 185 173 231 256 280 9 % 51 %
Interest on time deposits 12,657 19,746 21,710 21,291 17,464 -18 % 38 %
Interest on other financing from BCRA<br> and financial inst. 21 24 45 48 43 -10 % 105 %
Repos
Other financial institutions 30 2 109 60 67 12 % 123 %
Interest on corporate bonds 539 485 465 391 132 -66 % -76 %
Interest on subordinated bonds 748 771 761 737 699 -5 % -7 %
Interest on other financial liabilities 17 16 11 7 5 -29 % -71 %
Total financial expense 14,364 21,808 24,860 23,596 18,769 -5 % 55 %
Expenses from interest on deposits 13,009 20,510 23,469 22,353 17,823 -5 % 61 %

In 2Q21, the Bank’s net interest margin (including FX) was 18.8%, higher than the 17.4% posted in 1Q21 and lower than the 19.8% posted in 2Q20.

In 2Q21 Net Interest Margin (excluding FX) was 18.4%, higher than the 16.6% posted in 1Q21 and lower than the 19.1% posted in 2Q20.

In 2Q21 Net Interest Margin (Pesos) was 20.7%, higher than the 19.1% posted in 1Q21 and lower than the 23% posted in 2Q20; meanwhile Net Interest Margin (USD) was 3.4%, higher than the 2.2% posted in 1Q21 and lower than the 2.3% registered in 2Q20.

ASSETS & LIABILITIES PERFORMANCE (AR$) MACRO Consolidated
In MILLION $ 2Q20 3Q20 4Q20 1Q21 2Q21
(Measuring Unit Current at EOP) AVERAGE REAL INT NOMINAL AVERAGE REAL INT NOMINAL AVERAGE REAL INT NOMINAL AVERAGE REAL INT NOMINAL AVERAGE REAL INT NOMINAL
Yields & rates in annualized<br> nominal % BALANCE RATE INT RATE BALANCE RATE INT RATE BALANCE RATE INT RATE BALANCE RATE INT RATE BALANCE RATE INT RATE
Interest-earning assets
Loans & Other Financing
Public Sector 9,415 15.0 % 39.9 % 7,011 11.9 % 46.0 % 5,174 1.7 % 47.5 % 4,127 -1.5 % 50.3 % 3,379 3.1 % 48.4 %
Financial Sector 3,553 17.0 % 42.3 % 2,688 7.6 % 40.4 % 2,346 -5.5 % 37.1 % 2,206 -12.0 % 34.2 % 1,617 -7.8 % 32.7 %
Private Sector 278,707 10.9 % 34.9 % 281,302 0.9 % 31.6 % 280,627 -9.2 % 31.7 % 267,000 -11.8 % 34.6 % 243,832 -6.3 % 34.9 %
Other debt securities
Central Bank Securities (Leliqs) 127,457 13.1 % 37.5 % 169,822 5.4 % 37.5 % 150,880 -5.4 % 37.2 % 151,343 -9.9 % 37.5 % 126,042 -4.5 % 37.5 %
Government & Private Securities 42,879 7.4 % 30.6 % 100,698 -0.6 % 29.7 % 125,663 -8.5 % 32.7 % 100,255 -10.8 % 36.1 % 91,800 -6.3 % 34.8 %
Repos 51,288 -3.5 % 17.3 % 61,015 -8.7 % 19.1 % 37,170 -7.9 % 33.6 % 26,008 -10.7 % 36.2 % 15,075 -5.4 % 36.2 %
Total interest-earning assets 513,299 9.9 % 33.6 % 622,536 1.1 % 31.9 % 601,860 -7.9 % 33.6 % 550,939 -10.9 % 35.9 % 481,745 -5.7 % 35.7 %
Non interest-earning assets 154,092 97,430 113,561 113,541 10,018
Total Average Assets 667,391 719,966 715,421 664,480 589,763
Interest-bearing liabilities
Deposits
Public Sector 27,482 -0.3 % 21.3 % 72,746 -4.3 % 24.8 % 70,209 -12.0 % 27.6 % 40,948 -14.9 % 29.8 % 24,775 -11.1 % 28.0 %
Private Sector 268,801 -3.8 % 17.0 % 312,855 -7.9 % 20.2 % 312,353 -14.8 % 23.6 % 309,097 -17.9 % 25.3 % 261,309 -13.4 % 24.7 %
BCRA and other financial institutions 596 -5.6 % 14.8 % 569 -6.7 % 21.7 % 685 -11.8 % 27.9 % 748 -16.7 % 27.1 % 676 -12.0 % 26.7 %
Corporate bonds 7,264 6.7 % 29.8 % 6,925 -2.0 % 27.9 % 6,295 -10.8 % 29.4 % 5,633 -16.0 % 28.2 % 2,772 -17.3 % 19.1 %
Repos 1,309 -10.2 % 9.2 % 69 -14.5 % 11.5 % 1,425 -10.1 % 30.4 % 790 -14.2 % 30.8 % 896 -9.7 % 30.0 %
Total int.-bearing liabilities 305,452 -3.2 % 17.7 % 393,164 -7.2 % 21.1 % 390,967 -14.2 % 24.5 % 357,216 -17.5 % 25.9 % 290,428 -13.2 % 24.9 %
Total non int.-bearing liabilities 194,118 207,371 209,161 188,364 183,611
Total Average Liabilities 499,570 600,535 600,128 545,580 474,039
Assets Performance 42,838 49,946 50,798 48,709 42,885
Liabilities Performance 13,421 20,901 24,038 22,816 18,044
Net Interest Income 29,417 29,045 26,760 25,893 24,841
Total interest-earning assets 513,299 622,536 601,860 550,939 481,745
Net Interest Margin (NIM) 23.0 % 18.6 % 17.7 % 19.1 % 20.7 % 
**7**

ASSETS & LIABILITIES PERFORMANCE USD MACRO Consolidated
In MILLION $ 2Q20 3Q20 4Q20 1Q21 2Q21
(Measuring Unit Current at EOP) AVERAGE REAL INT NOMINAL AVERAGE REAL INT NOMINAL AVERAGE REAL INT NOMINAL AVERAGE REAL INT NOMINAL AVERAGE REAL INT NOMINAL
Yields & rates in annualized<br> nominal % BALANCE RATE INT RATE BALANCE RATE INT RATE BALANCE RATE INT RATE BALANCE RATE INT RATE BALANCE RATE INT RATE
Interest-earning assets
Cash and Deposits in Banks 60,704 13.0 % 0.1 % 62,226 1.7 % 0.3 % 63,647 -2.4 % 0.0 % 65,302 -9.7 % 0.0 % 48,815 -19.2 % 0.0 %
Loans & Other Financing
Financial Sector 95 17.7 % 4.2 % 78 6.6 % 5.1 % 33 9.4 % 12.1 % 26 0.0 % 0.0 % 7 0.0 % 0.0 %
Private Sector 54,838 26.1 % 11.7 % 34,709 16.8 % 15.2 % 30,353 14.8 % 17.6 % 26,812 8.1 % 19.7 % 23,745 -0.8 % 22.7 %
Other debt securities
Government & Private Securities 6,204 13.5 % 0.5 % 6,394 2.5 % 1.1 % 7,476 0.0 % 0.0 % 6,277 -8.5 % 1.3 % 3,661 -17.5 % 2.1 %
Total interest-earning assets 121,841 19.0 % 5.4 % 103,407 6.8 % 5.3 % 101,509 2.8 % 5.3 % 98,417 -4.7 % 5.5 % 76,228 -13.4 % 7.2 %
Non interest-earning assets 62,912 129,798 117,917 124,289 124,444
Total Average Assets 184,753 233,205 219,426 222,706 200,672
Interest-bearing liabilities
Deposits
Public Sector 1,979 14.1 % 1.0 % 1,083 1.8 % 0.4 % 1,613 -9.4 % 0.3 % 1,613 -9.4 % 0.3 % 2,519 -19.0 % 0.2 %
Private Sector 71,672 14.1 % 1.0 % 70,243 2.1 % 0.7 % 62,576 -9.5 % 0.2 % 62,576 -9.5 % 0.2 % 58,512 -19.0 % 0.2 %
BCRA and other financial institutions 902 20.9 % 7.1 % 713 6.5 % 5.0 % 427 -5.4 % 4.7 % 427 -5.4 % 4.7 % 592 -17.6 % 2.0 %
Subordinated bonds 42,153 20.9 % 7.1 % 42,985 8.6 % 7.1 % 42,052 -3.3 % 7.1 % 42,052 -3.3 % 7.1 % 39,675 -13.4 % 7.1 %
Total int.-bearing liabilities 116,706 16.5 % 3.2 % 115,024 4.6 % 3.1 % 106,668 -7.0 % 3.0 % 106,668 -7.0 % 3.0 % 101,298 -16.8 % 2.9 %
Total non int.-bearing liabilities 56,021 54,711 51,409 51,409 35,310
Total Average liabilities 172,727 169,735 158,077 158,077 136,608
Assets Performance 1,628 1,383 1,345 1,326 1,366
Liabilities Performance 943 907 822 780 725
Net Interest Income 685 476 523 546 641
Total interest-earning assets 121,841 103,407 101,509 98,417 76,228
Net Interest Margin (NIM) 2.3 % 1.8 % 2.0 % 2.2 % 3.4 %

In 2Q21 Banco Macro’s net fee income totaled Ps.6.8 billion, 3% or Ps.186 million higher than in 1Q21 and 3% or Ps.218 million lower than the same period of last year.

In the quarter, fee income totaled Ps.7.4 billion, 3% or Ps.199 million higher than in 1Q21. On a yearly basis, fee income decreased 1% or Ps.90 million.

In the quarter, total fee expense increased 2% or Ps.13 million. On a yearly basis, fee expenses increased 23% or Ps.128 million.

NET FEE INCOME MACRO Consolidated Change
In MILLION $ (Measuring Unit Current at EOP) 2Q20 3Q20 4Q20 1Q21 2Q21 QoQ YoY
Fees charged on deposit accounts 2,877 3,100 2,772 2,722 2,983 10 % 4 %
Credit card fees 1,545 1,606 1,660 1,337 1,263 -6 % -18 %
Corporate services fees 642 769 773 766 787 3 % 23 %
ATM transactions fees 620 715 707 727 669 -8 % 8 %
Insurance fees 450 487 518 474 471 -1 % 5 %
Debit card fees 503 502 514 478 469 -2 % -7 %
Financial agent fees (Provinces) 386 389 423 391 436 12 % 13 %
Credit related fees 316 183 172 164 190 16 % -40 %
Mutual funds & securities fees 152 210 186 143 130 -9 % -14 %
AFIP & Collection services 23 28 28 30 32 7 % 39 %
ANSES fees 18 16 14 11 12 9 % -33 %
Total fee income 7,532 8,005 7,767 7,243 7,442 3 % -1 %
Total fee expense 550 651 674 665 678 2 % 23 %
Net fee income 6,982 7,354 7,093 6,578 6,764 3 % -3 %

In 2Q21 Net Income from financial assets and liabilities at fair value through profit or loss totaled a Ps.5.3 billion gain, 4% or Ps.221 million higher than the previous quarter. This gain is mostly related to higher income from Government and private securities.

On a yearly basis Net income from financial assets and liabilities at fair value through profit or loss increased 55% or Ps.1.9 billion.

**8**
2Q21<br> Earnings Release
NET INCOME<br> FROM FINANCIAL ASSETS <br><br>AND LIABILITIES<br> AT FAIR VALUE THROUGH PROFIT OR LOSS MACRO<br> Consolidated Change
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
In MILLION $ (Measuring Unit Current at EOP) 2Q20 3Q20 4Q20 1Q21 2Q21 QoQ YoY
Profit or loss from<br> government securities 3,028 3,616 3,882 4,485 4,839 8 % 60 %
Profit or loss from private securities 153 382 169 180 443 146 % 190 %
Profit or loss from investment in<br> derivative financing instruments 29 2 8 0 0 0 % -100 %
Profit or loss from other financial<br> assets 17 -5 -1 -13 -3 - -
Profit or loss from investment<br> in equity instruments 122 -149 -55 442 -19 - 209 %
Profit or loss from the sale of<br> financial assets at fair value 60 -79 111 -33 27 - -
Income from financial assets<br> at fair value through profit or loss 3,409 3,767 4,114 5,061 5,287 4 % 55 %
Profit or loss from derivative<br> financing instruments 0 0 0 0 -5 - -
Income from financial liabilities<br> at fair value through profit or loss 0 0 0 0 -5 - -
NET INCOME FROM FINANCIAL<br> ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS 3,409 3,767 4,114 5,061 5,282 4 % 55 %

In the quarter Other Operating Income totaled Ps.1.4 billion, 23% or Ps.421 million lower than in 1Q21. On a yearly basis Other Operating Income decreased 12% or Ps.189 million.

OTHER OPERATING<br> INCOME MACRO<br> Consolidated Change
In MILLION $ (Measuring Unit Current at EOP) 2Q20 3Q20 4Q20 1Q21 2Q21 QoQ YoY
Credit and debit<br> cards 25 39 50 57 66 16 % 164 %
Lease of safe deposit boxes 248 270 246 229 246 7 % -1 %
Other service related fees 545 608 428 466 499 7 % -8 %
Other adjustments and interest<br> from other receivables 257 261 288 299 415 39 % 61 %
Initial recognition of loans 27 -17 -10 3 -3 - -
Sale of property, plant and equipment 1 7 2 2 0 -100 % -100 %
Others 495 480 740 774 186 -76 % -62 %
Other Operating Income 1,598 1,648 1,744 1,830 1,409 -23 % -12 %

In 2Q21 Banco Macro’s administrative expenses plus employee benefits totaled Ps.12.3 billion, 4% or Ps.441 million higher than the previous quarter, due to higher employee benefits(+4%) and higher administrative expenses(+3%). On a yearly basis administrative expenses plus employee benefits decreased 5% or Ps.693 million.

Employee benefits increased 4% or Ps.342 million QoQ. On a yearly basis Employee benefits decreased 3% or Ps.218 million.

In 2Q21 administrative expenses increased 3% or Ps.99 million, due to higher advertising and publicity fees (+166%) and higher Other professional fees (+37%).

In 2Q21, the efficiency ratio reached 38.4%, deteriorating from the 35.7% posted in 1Q21 and higher than the 36.3% posted a year ago. In 2Q21 expenses (employee benefits + G&A expenses + depreciation and impairment of assets) increased 3% or Ps.446 million, while income (net interest income + net fee income

  • differences in quoted prices of gold and foreign currency + other operating income + net income from financial assets at fair value through profit or loss – (Turnover Tax + Insurance on deposits)) decreased 3% or Ps. 1.3 billion compared to 1Q21.

    9

2Q21<br> Earnings Release
PERSONNEL &<br> ADMINISTRATIVE EXPENSES MACRO<br> Consolidated Change
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
In MILLION $ (Measuring Unit Current at EOP) 2Q20 3Q20 4Q20 1Q21 2Q21 QoQ YoY
Employee benefits 8,613 8,649 8,593 8,053 8,395 4 % -3 %
Remunerations 6,511 6,441 6,197 5,805 6,080 5 % -7 %
Social<br> Security Contributions 1,449 1,429 1,427 1,307 1,393 7 % -4 %
Compensation<br> and bonuses 517 574 775 767 738 -4 % 43 %
Employee<br> services 136 205 194 174 184 6 % 35 %
Administrative Expenses 4,362 4,743 4,884 3,788 3,887 3 % -11 %
Taxes 546 565 604 601 599 0 % 10 %
Maintenance,<br> conservation fees 689 708 807 646 662 2 % -4 %
Directors<br> & statutory auditors fees 429 368 757 116 102 -12 % -76 %
Security<br> services 451 432 426 418 416 0 % -8 %
Electricity<br> & Communications 491 476 457 442 432 -2 % -12 %
Other<br> professional fees 270 286 266 282 386 37 % 43 %
Rental<br> agreements 41 14 23 35 19 -46 % -54 %
Advertising<br> & publicity 124 105 221 64 170 166 % 37 %
Personnel<br> allowances 33 34 41 32 41 28 % 24 %
Stationary<br> & Office Supplies 28 30 26 22 25 14 % -11 %
Insurance 56 60 57 51 55 8 % -2 %
Hired<br> administrative services 1 2 0 3 2 - 100 %
Other 1,203 1,663 1,199 1,076 978 -9 % -19 %
Total Administrative Expenses 12,975 13,392 13,477 11,841 12,282 4 % -5 %
Total Employees 8,706 8,651 8,561 8,459 8,318
Branches 463 463 463 463 464
Efficiency ratio 36.3 % 36.8 % 38.8 % 35.7 % 38.4 %
Accumulated efficiency ratio 50.7 % 43.7 % 41.2 % 45.9 % 50.7 %

In 2Q21, Other Operating Expenses totaled Ps.6.3 billion, decreasing 11% or Ps.787 million QoQ, due to lower Turnover Tax (7% or Ps.264 million), lower provision charges (59% or Ps.262 million) and lower other operating expenses (11% or Ps.281 million). On a yearly basis Other Operating Expenses increased 2% or Ps.109 million.

OTHER OPERATING<br> EXPENSES MACRO<br> Consolidated Change
In MILLION $ (Measuring Unit Current at EOP) 2Q20 3Q20 4Q20 1Q21 2Q21 QoQ YoY
Turnover Tax 3,496 3,478 3,262 3,879 3,615 -7 % 3 %
Other provision charges 294 365 271 442 180 -59 % -39 %
Deposit Guarantee Fund Contributions 215 257 263 250 208 -17 % -3 %
Donations 34 1 6 1 1 0 % -97 %
Insurance claims 24 18 14 12 14 17 % -42 %
Initial loan recognition -4 0 60 0 60 100 % -
Others 2,099 2,281 2,377 2,470 2,189 -11 % 4 %
Other Operating Expenses 6,158 6,400 6,253 7,054 6,267 -11 % 2 % 
**10**
2Q21<br> Earnings Release

In 2Q21 the result from the net monetary positiontotaled a Ps.13.6 billion loss, 15% or Ps.2.5 billion lower than the loss posted in 1Q21. On a yearly basis the loss related to the netmonetary position increased 119% or Ps.7.4 billion. This is the second quarter in which the result from net monetary position is shown pursuant to Communication “A” 7211 of the Central Bank of Argentina in which the inflation adjustment on our Leliqs and other government securities holdings is included (previously shown in Net Income from financial instruments at fair value through P&L). Previous quarters of 2020 have been restated in accordance with Communication “A” 7211 in order to make a comparison possible. Also lower inflation was observed during the quarter (200 b.p. below 1Q21 level, down from 12.95% to 10.95%).

OPERATING RESULT MACRO<br> consolidated Change
In MILLION $ (Measuring Unit Current at EOP) 2Q20 3Q20 4Q20 1Q21 2Q21 QoQ YoY
Operating Result<br> (exc. Loss from net monetary position) 19,264 20,409 18,154 20,997 19,442 -7 % 1 %
Result from net monetary<br> position (i.e. inflation adjustment) -6,203 -9,272 -13,332 -16,025 -13,557 -15 % 119 %
Operating Result (Inc. Loss<br> from net monetary position) 13,061 11,137 4,822 4,972 5,885 18 % -55 %

In 2Q21 Banco Macro's effective income tax rate was 21.8%, lower than the 51.4% effective tax rate of 1Q21 and the 29.9% registered one year ago. For more information see note 19 to our Financial Statements.

Financial Assets

Private sector financing

The volume of “core” financing to the private sector (including loans, financial trust and leasing portfolio) totaled Ps.267.8 billion, decreasing 7% or Ps.20 billion QoQ and 19% or Ps.61.7 billion YoY as a consequence of the economic recession that affected Argentina during 2020 and the effects of the ongoing Covid-19 pandemic.

Commercial loans decreased 13% or Ps.13.4 billion, among which Others stand out with a 24% or Ps.9.4 billion decrease (mostly loans extended to SMEs at 24% interest rate as part of the Covid-19 relief package) and Documents with a 9% or Ps.2.5 billion decrease.

Consumer lending decreased 5% or Ps.7.3 billion. Personal loans decreased 6% or Ps.4.7 billion, while Credit Card loans decreased 4% or Ps.2.6 billion.

Within private sector financing, peso financing decreased 5% or Ps.12.4 billion, while US dollar financing decreased 31% or USD 90 million.

As of 2Q21, Banco Macro´s market share over private sector loans was 7%.

**11**
2Q21<br> Earnings Release
FINANCING TO<br> THE PRIVATE SECTOR Change
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
In MILLION (Measuring Unit Current at EOP) 3Q20 4Q20 1Q21 2Q21 QoQ YoY
Overdrafts 30,750 23,982 21,400 16,103 15,604 -3 % -49 %
Discounted documents 32,819 29,803 32,800 29,744 27,197 -9 % -17 %
Mortgage loans 19,479 19,047 16,898 15,656 14,644 -6 % -25 %
Pledged loans 5,541 5,048 4,084 3,682 3,805 3 % -31 %
Personal loans 86,762 84,563 84,087 83,023 78,358 -6 % -10 %
Credit Card loans 68,283 73,412 80,053 72,661 70,071 -4 % 3 %
Others 57,577 61,528 49,390 39,975 30,533 -24 % -47 %
Interest 25,308 24,221 24,765 24,328 25,072 3 % -1 %
Total loan portfolio 326,519 321,604 313,477 285,172 265,284 -7 % -19 %
Total loans in Pesos 283,442 290,339 285,575 259,237 246,831 -5 % -13 %
Total loans in 43,077 31,265 27,902 25,935 18,453 -29 % -57 %
Financial trusts 1,257 507 713 326 420 29 % -67 %
Leasing 233 186 149 138 160 16 % -31 %
Others 1,462 1,734 2,053 2,145 1,899 -11 % 30 %
Total other financing 2,952 2,427 2,915 2,609 2,479 -5 % -16 %
Total other financing in<br> Pesos 1,436 1,113 1,622 1,405 1,351 -4 % -6 %
Total other financing in 1,516 1,314 1,293 1,204 1,128 -6 % -26 %
Total financing to the private<br> sector 329,471 324,031 316,392 287,781 267,763 -7 % -19 %
EOP FX (Pesos per ) 70.4550 76.1750 84.1450 91.9850 95.7267 4 % 36 %
financing / Financing<br> to the private sector 14 % 10 % 9 % 9 % 7 %

All values are in US Dollars.

Public Sector Assets

In 2Q21, the Bank’s public sector assets (excluding LELIQs) to total assets ratio was 21%, higher than the 16.9% registered in the previous quarter, and higher than the 9.3% posted in 2Q20.

In 2Q21, a 19% or Ps.26.8 billion increase in Other Government securities and a 9% or Ps.12.7 billion decrease in Leliqs stand out. Since 2Q20 the Bank decided to invest in CER adjustable and Badlar bonds.

PUBLIC SECTOR ASSETS MACRO Consolidated Change
In MILLION $ (Measuring Unit Current at EOP) 2Q20 3Q20 4Q20 1Q21 2Q21 QoQ YoY
Leliqs 158,325 176,402 161,262 135,209 122,501 -16 % 20 %
Other 78,078 175,015 164,151 140,106 166,932 -15 % 320 %
Government securities 236,403 351,417 325,413 275,315 289,433 -15 % 88 %
Provincial loans 9,499 5,426 4,315 3,481 3,461 -19 % -46 %
Loans 9,499 5,426 4,315 3,481 3,461 -19 % -46 %
Purchase of government bonds 195 194 192 184 172 -4 % -4 %
Other receivables 195 194 192 184 172 -4 % -4 %
TOTAL PUBLIC SECTOR ASSETS 246,097 357,037 329,920 278,980 293,066 -15 % 82 %
TOTAL PUBLIC SECTOR ASSETS (net of LEBAC/NOBAC/LELIQ) 87,772 180,635 168,658 143,771 170,565 -15 % 260 %
TOTAL PUBLIC SECTOR ASSETS (net of LEBAC/NOBAC/LELIQ)/TOTAL ASSETS 9.3 % 17.7 % 17.5 % 16.9 % 21.0 % 
**12**
2Q21<br> Earnings Release

Funding

Deposits

Banco Macro’s deposit base totaled Ps.492.3 billion in 2Q21, decreasing 3% or Ps.15.1 billion QoQ and a 19% or Ps.117.5 billion decrease YoY and representing 78% of the Bank’s total liabilities.

On a quarterly basis, both public and private sector deposits decreased with a 16% or Ps.9.8 billion decrease and a 1% or Ps.5.2 billion decrease respectively.

The decrease in private sector deposits was led by time deposits, which decreased 7% or Ps.15.7 billion, while demand deposits increased 4% or Ps.8.6 billion QoQ.

Within private sector deposits, peso deposits decreased 3% or Ps.11.1 billion, while US dollar deposits decreased 8% or USD 81 million.

As of 2Q21, Banco Macro´s market share over private sector deposits was 5.1%.

DEPOSITS Change
In MILLION (Measuring Unit Current at EOP) 3Q20 4Q20 1Q21 2Q21 QoQ YoY
Public sector 89,623 147,383 92,195 61,425 51,605 -16 % -42 %
Financial sector 525 615 873 770 720 -6 % 37 %
Private sector 519,688 539,430 519,444 445,177 439,984 -1 % -15 %
Checking accounts 107,238 100,045 81,964 77,150 77,961 1 % -27 %
Savings accounts 159,597 150,335 173,641 136,393 144,171 6 % -10 %
Time deposits 239,104 277,892 254,368 221,399 205,686 -7 % -14 %
Other 13,749 11,158 9,471 10,235 12,166 19 % -12 %
Total 609,836 687,428 612,512 507,372 492,309 -3 % -19 %
Pesos 494,335 577,545 515,886 415,414 404,341 -3 % -18 %
Foreign Currency (Pesos) 115,501 109,883 96,626 91,958 87,968 -4 % -24 %
EOP FX (Pesos per ) 70.4550 76.1750 84.1450 91.9850 95.7267 4 % 36 %
Foreign Currency () 1,639 1,443 1,148 1,000 919 -8 % -44 %
Deposits / Total Deposits 19 % 16 % 16 % 18 % 18 %

All values are in US Dollars.

Banco Macro’s transactional deposits represent approximately 51% of its total deposit base as of 2Q21. These accounts are low cost and are not sensitive to interest rate increases.

Other sources of funds

In 2Q21, the total amount of other sources of funds decreased 6% or Ps.13.1 billion compared to 1Q21. On a yearly basis other sources of funds decreased 13% or Ps.6.2 billion. In 2Q21 Shareholder’s Equity decreased 3% or Ps.6.2 billion as a consequence of the Ps.10.6 billion dividend declared and approved by the General Shareholders’ Meeting in April which was partially offset by the Ps.4.8 billion total comprehensive income of the quarter; also in the quarter subordinated corporate bonds decreased 8% while non subordinated corporate bonds decreased 57%. On April 9, 2021 the Bank fully paid principal and interest on Series “C” peso denominated notes.

OTHER SOURCES<br> OF FUNDS MACRO<br> Consolidated Change
In MILLION $ (Measuring Unit Current at EOP) 2Q20 3Q20 4Q20 1Q21 2Q21 QoQ YoY
Central Bank of Argentina 27 27 25 22 24 9 % -11 %
Banks and international institutions 825 561 445 578 567 -2 % -31 %
Financing received from Argentine<br> financial institutions 753 371 681 675 118 -83 % -84 %
Subordinated corporate bonds 43,036 43,991 42,987 42,327 39,093 -8 % -9 %
Corporate bonds 7,283 7,002 6,175 5,608 2,432 -57 % -67 %
Shareholders' equity 179,039 186,848 185,579 188,658 182,495 -3 % 2 %
Total other source of funds 230,963 238,800 235,892 237,868 224,729 -6 % -3 % 
**13**
2Q21<br> Earnings Release

Liquid Assets

In 2Q21, the Bank’s liquid assets amounted to Ps.457.8 billion, showing a 3% or Ps.16.7 billion decrease QoQ, and a 10% or Ps.52.9 billion decrease on a yearly basis.

In 2Q21, Cash decreased 16%; LELIQs own portfolio decreased 9% while Other government securities increased 19%

In 2Q21 Banco Macro’s liquid assets to total deposits ratio reached 93%.

LIQUID ASSETS MACRO Consolidated Change
In MILLION $ (Measuring Unit Current at EOP) 2Q20 3Q20 4Q20 1Q21 2Q21 QoQ YoY
Cash 156,053 157,565 162,881 170,329 143,465 -16 % -8 %
Guarantees for compensating chambers 16,946 15,249 15,090 13,262 12,168 -8 % -28 %
Call 0 209 63 1,220 0 -100 % 0 %
Leliq own portfolio 158,325 176,402 161,262 135,209 122,501 -9 % -23 %
Net Repos 101,340 75,300 48,630 14,302 12,776 -11 % -87 %
Other government & private securities 78,078 175,015 164,151 140,106 166,932 19 % 114 %
Total 510,742 599,740 552,077 474,428 457,842 -3 % -10 %
Liquid assets to total deposits 84 % 87 % 90 % 94 % 93 %

Solvency

Banco Macro continued showing high solvency levels in 2Q21 with an integrated capital (RPC) of Ps.212.2 billion over a total capital requirement of Ps.45.2 billion. Banco Macro’s excess capital in 2Q21 was 369% or Ps.167 billion. Since the beginning of 2020 and due to inflation adjustments Equity has increased significantly leading to higher solvency levels (shown under Ordinary Capital Level 1).

The regulatory capital ratio (as a percentage of risk-weighted assets- RWA) was 38.3% in 2Q21; TIER1 Ratio stood at 30.9%.

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

MINIMUM CAPITAL REQUIREMENT MACRO Consolidated Change
In MILLION $ 2Q20 3Q20 4Q20 1Q21 2Q21 QoQ YoY
Credit risk requirement 24,046 23,972 28,025 29,047 29,413 1 % 22 %
Market risk requirement 1,122 1,172 1,556 1,538 1,559 1 % 39 %
Operational risk requirement 9,493 10,604 11,777 12,934 14,252 10 % 50 %
Total capital requirements 34,660 35,749 41,358 43,519 45,224 4 % 30 %
Ordinary Capital Level 1 (COn1) 116,048 131,531 146,350 171,410 182,409 6 % 57 %
Deductible concepts Level 1 (COn1) -10,011 -11,768 -9,150 -9,889 -11,194 13 % 12 %
Capital Level 2 (COn2) 30,427 32,854 36,248 39,442 40,987 4 % 35 %
Integrated capital - RPC (i) 136,464 152,618 173,449 200,964 212,202 6 % 56 %
Excess capital 101,804 116,869 132,091 157,445 166,978 6 % 64 %
Risk-weighted assets - RWA (ii) 424,501 438,129 506,766 533,407 554,596 4 % 31 %
Regulatory Capital ratio [(i)/(ii)] 32.1 % 34.8 % 34.2 % 37.7 % 38.3 %
Ratio TIER 1 [Capital Level 1/RWA] 25.0 % 27.3 % 27.1 % 30.3 % 30.9 %

RWA - (ii): Risk Weighted Assets, considering total capital requirements.

(¹) Figueres are not inflation adjusted. Expressed in Pesos current at end of each quarter

(²) Figures are inflaiton adjusted. Expressed in Pesos current at EOP

**14**
2Q21<br> Earnings Release

Asset Quality

In 2Q21, Banco Macro’s non-performing to total financing ratio (under Central Bank rules) reached a level of 1.68%, up from 0.92% in 1Q21, and above the 1.52% posted in 2Q20.

Consumer portfolio non-performing loans increased 89b.p. (up to 1.88% from 0.89%) while Commercial portfolio non-performing loans increased 11b.p. in 2Q21 (up to 1.11% from 1%).

During 2020 Consumer portfolio non-performing loans ratio were positively impacted by measures adopted by the Central Bank of Argentina in the current Covid19 pandemic context, particularly the 60 day grace period that was added to debtor classification before a loan was considered as non performing and the possibility to refinance outstanding credit card balances. These measures were in place until March 31^st^, 2021.

In March 2021 through Communication “A” 7245, the Central Bank established a gradual transition in the definition of debtors for clients who chose to postpone the payment of installments. Financial entities must increase the grace period to classify their debtors in levels 1, 2 and 3, both for the commercial portfolio and for the consumer or housing portfolio, according to the following schedule: i) Until March 31, 2021, in 60 days, ii) Until May 31, 2021, in 30 days, and iii) As of June 1, 21, financial entities must classify their debtors according to the general debtor classification.

The coverage ratio (measured as total allowances under Expected Credit Losses over Non Performing loans under Central Bank rules) reached to 212.91% in 2Q21. Write-offs over total loans totaled 0.04%.

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

ASSET QUALITY MACRO Consolidated Change
In MILLION $ (Measuring Unit Current at EOP) 2Q20 3Q20 4Q20 1Q21 2Q21 QoQ YoY
Commercial portfolio 122,751 106,083 95,814 84,227 73,132 -13 % -40 %
Non-performing 1,896 1,647 864 840 815 -3 % -57 %
Consumer portfolio 236,237 242,347 243,069 223,791 212,443 -5 % -10 %
Non-performing 3,553 2,325 1,766 1,991 3,988 100 % 12 %
Total portfolio 358,988 348,430 338,883 308,018 285,574 -7 % -20 %
Non-performing 5,449 3,972 2,630 2,831 4,803 70 % -12 %
Commercial non-perfoming ratio 1.54 % 1.55 % 0.90 % 1.00 % 1.11 %
Consumer non-perfoming ratio 1.50 % 0.96 % 0.73 % 0.89 % 1.88 %
Total non-performing/ Total portfolio 1.52 % 1.14 % 0.78 % 0.92 % 1.68 %
Total allowances 11,479 12,034 12,605 10,979 10,226 -7 % -11 %
Coverage ratio w/allowances 210.65 % 302.96 % 479.28 % 387.82 % 212.91 %
Write Offs 762 880 1,244 142 110 -23 % -86 %
Write Offs/ Total portfolio 0.21 % 0.25 % 0.37 % 0.05 % 0.04 % 
**15**
2Q21<br> Earnings Release

Expected Credit Losses (E.C.L) (I.F.R.S.9)

The Bank records an allowance for expected credit losses for all loans and other debt financial assets not held at fair value through profit or loss, together with loan commitments and financial guarantee contracts, in this section all referred to as ‘financial instruments’. Equity instruments are not subject to impairment under IFRS 9. The ECL allowance is based on the credit losses expected to arise over the life of the asset (the lifetime expected credit loss), unless there has been no significant increase in credit risk since origination, in which case, the allowance is based on the 12 months expected credit loss.(For further information please see our 2020 20-F)

CER Exposure and Foreign Currency Position

CER EXPOSURE MACRO Consolidated Change
In MILLION $ (Measuring Unit Current at EOP) 2Q20 3Q20 4Q20 1Q21 2Q21 QoQ YoY
CER adjustable ASSETS
Government Securities 29,418 61,680 64,161 79,096 98,917 25 % 236 %
Loans (*) 24,653 24,076 23,366 22,929 22,807 -1 % -7 %
Private sector loans 10,312 9,688 8,789 7,989 7,146 -11 % -28 %
Mortgage loans (UVA adjusted) 14,336 14,382 14,568 14,931 15,652 5 % -28 %
Other loans 5 6 9 9 9 0 % -28 %
Total CER adjustable assets 54,071 85,756 87,527 102,025 121,724 19 % 125 %
CER adjustable LIABILITIES
Deposits (*) 3,361 1,333 1,729 4,014 8,075 101 % -28 %
UVA Unemployment fund 908 968 971 1,016 1,178 16 % -28 %
Total CER adjustable liabilities 4,269 2,301 2,700 5,030 9,253 84 % 117 %
NET CER EXPOSURE 49,802 83,455 84,827 96,995 112,471 16 % 126 %
(*) Includes Loans &Time Deposits CER adjustable (UVAs)
FOREIGN CURRENCY POSITION Change
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
In MILLION (Measuring Unit Current at EOP) 3Q20 4Q20 1Q21 2Q21 QoQ YoY
Cash and deposits in Banks 120,130 128,848 132,494 130,081 112,530 -13 % -6 %
Cash 6,537 10,768 12,288 8,788 8,280 -6 % 27 %
Central Bank of Argentina 52,065 81,230 51,851 61,358 59,572 -3 % 14 %
Other financial institutions local and abroad 61,521 36,843 68,348 59,928 44,672 -25 % -27 %
Others 7 7 7 6 6 0 % -14 %
Net Income from financial instruments at fair value through P&L 50 6 7 42 769 1731 % 1438 %
Other financial assets 6,162 6,375 6,238 6,270 5,462 -13 % -11 %
Loans and other financing 44,502 32,600 29,189 27,131 19,551 -28 % -56 %
Other financial institutions 89 54 27 26 0 -100 % -100 %
Non financial private sector & foreign residents 44,413 32,545 29,163 27,105 19,551 -28 % -56 %
Other debt securities 6,430 6,318 7,382 4,367 5,608 28 % -13 %
Guarantees received 3,217 2,199 2,284 2,004 1,934 -3 % -40 %
Investment in equity instruments 11 12 15 14 11 -21 % 0 %
Total Assets 180,503 176,357 177,608 169,910 145,865 -14 % -19 %
Deposits 115,501 109,883 96,626 91,958 87,968 -4 % -24 %
Non financial public sector 5,073 3,539 5,262 4,537 5,342 18 % 5 %
Financial sector 404 549 719 703 659 -6 % 63 %
Non financial private sector & foreign residents 110,024 105,796 90,645 86,717 81,967 -5 % -26 %
Other liabilities from financial intermediation 8,185 7,937 23,121 20,477 7,038 -66 % -14 %
Financing from the Central Bank and other fin. Inst 1,066 753 589 670 610 -9 % -43 %
Subordinated corporate bonds 43,036 43,991 42,987 42,327 39,093 -8 % -9 %
Other non financial liabilities 90 78 25 29 22 -24 % -76 %
Total Liabilities 167,878 162,641 163,347 155,461 134,731 -13 % -20 %
NET FX POSITION (Pesos) 12,625 13,716 14,261 14,449 11,134 -23 % -12 %
EOP FX (Pesos per ) 70.4550 76.1750 84.1450 91.9850 95.7267 4 % 36 %
NET FX POSITION () 179 180 169 157 116 -26 % -35 %

All values are in US Dollars.

**16**
2Q21<br> Earnings Release

Relevantand Recent Events

· Credit Rating Senior UnsecuredSeries B Notes. In July 2021 Moody’s Local Argentina informed us the upgrading of the local ratings of Banco Macro S.A., particularly<br>the rating affected was: Senior Unsecured debt Series B notes from AA+.ar to AAA.ar
· Credit Rating SubordinatedSeries A Notes. In August 2021, that Fix SCR S.A (affiliated of Fitch Ratings) informed us of the upgrading of the local ratings of<br>Banco Macro S.A., particularly the rating affected was: Subordinated debt Series A notes from AA(arg) to AA+(arg)
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· Covid-19: In early March<br>2020, the World Health Organization recognized Coronavirus (Covid-19) as a pandemic that is severely affecting almost all countries around<br>the world. The spread of this disease globally has forced the authorities to take drastic health and financial measures to contain and<br>mitigate its effects on health and economic activity. Particularly in the Argentine Republic, on March 19, 2020, through Decree No.<br>297/2020, the Government established the “social, preventive and compulsory isolation” measure until March 31, 2020, which<br>was then extended until June 7, 2020. Along with health protection rules, tax and financial measures were taken to mitigate the impact<br>on the economy associated with the pandemic, including public direct financial assistance measures for part of the population, the establishment<br>of financial and fiscal facilities for both individuals and companies. As regards measures related to the Entity’s business, the<br>BCRA established maturities extensions, froze the mortgage loan installments and encouraged banks to lend to companies at reduced rates.<br>In addition, the distribution of dividends of the finance institutions was suspended until December 31, 2021. In addition, in the mandatory<br>quarantine context, the BCRA ruled that financial institutions would not be able to open their branches for public service during that<br>period and should continue to provide services to users remotely. They could also trade with each other and their clients in the exchange<br>market remotely. During quarantine, remote trading of stock exchanges and capital markets authorized by the CNV, the custodians and capital<br>market agents registered with the CNV was admitted. In view of the extension of mandatory quarantine, the BCRA then decided that financial<br>institutions would open their branches from Friday, April 3, 2020 for public attention through previous appointments obtained by the Bank’s<br>website. The Bank is developing its activities under the conditions detailed above, giving priority to the compliance of social isolation<br>measures by its employees, with the primary objective of taking care of the public health and well-being of all its stakeholders (employees,<br>suppliers, customers, among others). To this end, it has put in place contingency procedures and has enabled its staff to carry out their<br>tasks remotely. From a commercial point of view, it has emphasized maintaining a close relationship with its customers, trying to respond<br>to their needs at this difficult time, sustaining all virtual channels of care to ensure operability and good response to requirements,<br>monitoring compliance with their business obligations and monitoring the active portfolio in order to detect possible delays in collection<br>and set new conditions for them. Considering the size of the abovementioned situation, the Bank’s Management estimates that this<br>situation could have an impact on its operations and the financial situation and the results of the Bank, which are under analysis, and<br>will ultimately; depend on the extent an duration of the health emergency and the success of the measures taken.
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**17**
2Q21<br> Earnings Release

Regulatory Changes

· Inflation Adjustment (OtherComprehensive Income) In January 2021 through Communication “A” 7221 with starting in fiscal year 2021, the monetary result<br>accrued with respect to items of a monetary nature that are measured at fair value with changes in Other Comprehensive Income (OCI), must<br>be recorded in results for the period/fiscal year. Consequently, the unallocated results must be adjusted and recorded in the account<br>"Adjustments to results from previous years" at the beginning of fiscal year 2021, in order to incorporate the accumulated monetary<br>results of the aforementioned items as of that date that will be recorded in OCI. All the comparative information for the next periods/fiscal<br>years must consider this change in the exposure criteria.
· **Minimum Reserve Requirements.**In late May 2021, through Communication “A” 7290 The Central Bank resolved that as of June 1, 2021, all reserve requirement<br>that financial institutions meet with LELIQs, will also be able to be integrated with sovereign securities in pesos that are not USD linked,<br>with a residual maturity of at least 180 days and 450 days at most, purchased at primary offering as of that date. Public securities used<br>to integrate reserve requirements in pesos will be excluded from “Nonfinancial public sector financing” regulation limits.
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· Dividend distribution.<br>On June 24, 2021 The Central Bank of Argentina through Communication “A” 7312 extended until December31, 2021, the ban on<br>dividend distribution for financial institutions.
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· Minimum Reserve requirements.<br>On July 29, 2021 through Communication “A” 7334 the Central Bank of Argentina resolve that as of September 1, 2021, the deduction<br>of average reserve requirements in pesos related to financings within the “Ahora 12” Program, cannot exceed 8% of all concepts<br>in pesos subject to reserve requirement, in average, from the month prior to calculation (previously 6%).
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· Financing at subsidized interestrate. In August 2021, through Communication “A” 7342 the<br>Central Bank of Argentina resolved that financial institutions must grant “Zero interest rate credits” financing in pesos,<br>pursuant to Decree No 512/21,with the same conditions as the “Zero rate credits” specified in the “Financial services<br>within the sanitary emergency disposed by Decree No 260/2020 Coronavirus (COVID-19)” regulation, with the following characteristics:
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o Financing must be granted in one unique installment.
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o Fee charges are banned on these credits, even if they are classified as non-performing.
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o Clients granted these financings will pay an interest rate and total financial cost of 0%.
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o Financing will get a grace period of 6 months since accreditation. As of month 7, it will be repaid in<br>at least 12 monthly equal consecutive installments.
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o Refinancing of “Zero rate credits” specified in Decree No 332/2020 through “Zero rate<br>credits 2021” lines must absorb the amounts due and will not be considered as refinancing in accordance to regulation regarding<br>debtor classification.
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o Financial institutions will not be able to deduct from these financings any kind of charge or fee against<br>the client. The interest rate that the FONDEP will recognize to financial institution will be 15% nominal annual over the balances of<br>granted credits.
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**18**
2Q21 Earnings Release
QUARTERLY<br> BALANCE SHEET MACRO<br> Consolidated Change
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
In MILLION<br> $ (Measuring Unit Current at EOP) 2Q20 3Q20 4Q20 1Q21 2Q21 QoQ YoY
ASSETS
Cash and deposits<br> in Banks 156,053 157,565 162,881 170,329 143,465 -16 % -8 %
Cash 23,853 28,115 31,861 26,241 21,372 -19 % -10 %
Central<br> Bank of Argentina 70,546 92,595 62,656 84,142 77,411 -8 % 10 %
Other<br> local & foreign entities 61,647 36,848 68,358 59,940 44,676 -25 % -28 %
Other 7 7 6 6 6 0 % -14 %
Debt securities at fair value<br> through profit & loss 18,800 23,086 68,906 42,585 61,942 45 % 229 %
Derivatives 25 19 9 - 4 - -84 %
Repo Transactions 103,255 75,300 49,405 14,302 13,052 -9 % -87 %
Other financial assets 16,841 21,721 23,669 19,380 15,400 -19 % -7 %
Loans & other receivables 341,241 331,609 322,493 294,059 272,546 -7 % -20 %
Non<br> Financial Public Sector 9,744 5,593 4,530 3,650 3,654 0 % -63 %
Financial<br> Sector 3,283 2,492 2,284 2,954 1,549 -48 % -53 %
Non<br> Financial private sector and foreign 328,214 323,524 315,679 287,455 267,343 -7 % -19 %
Other debt securities 224,038 335,193 262,082 235,895 232,127 -2 % 4 %
Financial assets in guarantee 20,909 17,061 17,912 15,247 14,443 -5 % -31 %
Investments in equity instruments 2,418 2,269 2,084 2,282 2,087 -9 % -14 %
Investments in other companies<br> (subsidiaries and joint ventures) 224 253 256 274 384 40 % 71 %
Property, plant and equipment 43,209 43,111 43,073 43,123 43,372 1 % 0 %
Intangible assets 6,193 6,183 6,397 6,455 6,647 3 % 7 %
Deferred income tax assets 97 99 79 63 70 11 % -28 %
Other non financial assets 2,923 2,900 2,798 2,846 2,530 -11 % -13 %
Non-current assets held for sale 3,064 3,135 2,830 2,828 2,824 0 % -8 %
TOTAL ASSETS 939,290 1,019,504 964,874 849,668 810,893 -5 % -14 %
LIABILITIES
Deposits 609,836 687,428 612,512 507,372 492,309 -3 % -19 %
Non<br> Financial Public Sector 89,623 147,383 92,195 61,425 51,605 -16 % -42 %
Financial<br> Sector 525 615 873 770 720 -6 % 37 %
Non<br> Financial private sector and foreign 519,688 539,430 519,444 445,177 439,984 -1 % -15 %
Liabilities at fair value through<br> profit & loss - - - - 12 - -
Derivatives - 1 - - 2 - 0 %
Repo Transactions 1,915 - 775 - 275 - -86 %
Other financial liabilities 43,246 39,952 61,679 55,338 40,365 -27 % -7 %
Financing received from Central<br> Bank and Other Financial Institutions 1,607 960 1,152 1,275 709 -44 % -56 %
Issued Corporate Bonds 7,283 7,002 6,175 5,608 2,432 -57 % -67 %
Current income tax liabilities 11,248 13,898 6,448 5,248 1,585 -70 % -86 %
Subordinated corporate bonds 43,036 43,991 42,987 42,327 39,093 -8 % -9 %
Provisions 2,425 2,268 1,635 1,544 963 -38 % -60 %
Deferred income tax liabilities 5,505 3,536 7,884 8,982 9,057 1 % 65 %
Other non financial liabilities 34,148 33,618 38,045 33,314 41,594 26 % 23 %
TOTAL LIABILITIES 760,249 832,654 779,292 661,008 628,396 -5 % -17 %
SHAREHOLDERS' EQUITY
Capital Stock 639 639 639 639 639 0 % 0 %
Issued Shares premium 12,430 12,430 12,430 12,430 12,430 0 % 0 %
Adjustment to Shareholders' Equity 66,364 66,364 66,364 66,364 66,364 0 % 0 %
Reserves 142,725 142,725 137,627 137,627 101,150 -27 % -29 %
Retained earnings -63,429 -63,429 -63,429 -32,890 -7,406 -77 % -88 %
Other accumulated comprehensive<br> income 493 1,558 1,409 2,061 2,274 10 % 361 %
Net income for the period / fiscal<br> year 19,817 26,561 30,539 2,427 7,044 190 % -64 %
Shareholders' Equity<br> attributable to parent company 179,039 186,848 185,579 188,658 182,495 -3 % 2 %
Shareholders' Equity<br> attributable to non controlling interest 2 2 3 2 2 0 % 0 %
TOTAL SHAREHOLDERS' EQUITY 179,041 186,850 185,582 188,660 182,497 -3 % 2 % 
**19**
2Q21 Earnings Release
INCOME STATEMENT MACRO<br> Consolidated Change
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
In MILLION<br> $ (Measuring Unit Current at EOP) 1Q20 2Q20 3Q20 4Q20 1Q21 QoQ YoY
Interest Income 44,466 51,329 52,143 50,035 44,251 -12 % 0 %
Interest Expense 14,364 21,808 24,860 23,596 18,769 -20 % 31 %
Net Interest Income 30,102 29,521 27,283 26,439 25,482 -4 % -15 %
Fee income 7,532 8,005 7,767 7,243 7,442 3 % -1 %
Fee expense 550 651 674 665 678 2 % 23 %
Net Fee Income 6,982 7,354 7,093 6,578 6,764 3 % -3 %
Subtotal (Net Interest Income<br> + Net Fee Income) 37,084 36,875 34,376 33,017 32,246 -2 % -13 %
Net Income from financial<br> instruments at Fair Value Through Profit & Loss 3,409 3,767 4,114 5,061 5,282 4 % 55 %
Result from assets at amortised<br> cost 28 85 157 66 61 -8 % 118 %
Difference in quoted prices of<br> gold and foreign currency 1,180 1,684 1,594 1,349 640 -53 % -46 %
Other operating income 1,598 1,648 1,744 1,830 1,409 -23 % -12 %
Provision for loan losses 3,519 2,441 2,706 2 213 10550 % -94 %
Net Operating Income 39,780 41,618 39,279 41,321 39,425 -5 % -1 %
Personnel expenses 8,613 8,649 8,593 8,053 8,395 4 % -3 %
Administrative expenses 4,362 4,743 4,884 3,788 3,887 3 % -11 %
Depreciation and impairment of<br> assets 1,383 1,417 1,395 1,429 1,434 0 % 4 %
Other operating expenses 6,158 6,400 6,253 7,054 6,267 -11 % 2 %
Operating Income 19,264 20,409 18,154 20,997 19,442 -7 % 1 %
Income from associates and joint<br> ventures 12 21 -74 26 19 -27 % 58 %
Result from net monetary position -6,203 -9,272 -13,332 -16,025 -13,557 - -
Net Income before income<br> tax on cont. operations 13,073 11,158 4,748 4,998 5,904 18 % -55 %
Income tax on continuing operations 3,912 4,415 772 2,571 1,287 -50 % -67 %
Net Income from continuing<br> operations 9,161 6,743 3,976 2,427 4,617 90 % -50 %
Net Income for the period 9,161 6,743 3,976 2,427 4,617 90 % -50 %
Net Income of the period attributable<br> to parent company 9,161 6,743 3,976 2,427 4,617 90 % -50 %
Net income of the period attributable<br> to non-controlling interests - - - - - - -
Other Comprehensive Income 1,366 1,064 -149 652 213 -67 % -84 %
Foreign currency translation<br> differences in financial statements conversion 117 72 -28 -108 -200 - -
Profits or losses from financial<br> assets measured at fair value through other comprehensive income (FVOCI) (IFRS 9(4.1.2)(a) 1,249 992 -121 760 413 -46 % -67 %
TOTAL COMPREHENSIVE INCOME<br> FOR THE PERIOD 10,527 7,807 3,827 3,079 4,830 57 % -54 %
Total Comprehensive Income attributable<br> to parent Company 10,527 7,807 3,827 3,079 4,830 57 % -54 %
Total Comprehensive Income attributable<br> to non-controlling interests - - - - - - - 
**20**
2Q21 Earnings Release
MACRO Consolidated
--- --- --- --- --- --- --- --- --- --- ---
QUARTERLYANNUALIZED RATIOS 2Q20 3Q20 4Q20 1Q21 2Q21
Profitability & performance
Net interest margin 19.8 % 17.1 % 16.3 % 17.4 % 18.8 %
Net interest margin adjusted<br> (exc. FX) 19.1 % 16.2 % 15.4 % 16.6 % 18.4 %
Net fee income ratio 12.3 % 13.1 % 13.9 % 11.5 % 12.2 %
Efficiency ratio 36.3 % 36.8 % 38.8 % 35.7 % 38.4 %
Net fee income as % of A&G<br> Expenses 33.9 % 35.6 % 35.7 % 32.2 % 31.7 %
Return on average assets 4.3 % 2.8 % 1.7 % 1.1 % 2.3 %
Return on average equity 20.5 % 14.7 % 8.8 % 5.4 % 10.3 %
Liquidity
Loans as a percentage of total<br> deposits 56.0 % 48.2 % 52.7 % 58.0 % 55.4 %
Liquid assets as a percentage<br> of total deposits 84.0 % 87.0 % 90.0 % 94.0 % 93.0 %
Capital
Total equity as a percentage<br> of total assets 19.1 % 18.3 % 19.2 % 22.2 % 22.5 %
Regulatory capital as % of APR 32.2 % 34.8 % 34.2 % 37.7 % 38.3 %
Asset Quality
Allowances over total loans 2.5 % 2.9 % 3.5 % 3.7 % 3.8 %
Non-performing financing as a<br> percentage of total financing 1.5 % 1.1 % 0.8 % 0.9 % 1.7 %
Coverage ratio w/allowances 210.7 % 303.0 % 479.3 % 387.8 % 212.9 %
Cost of Risk 4.1 % 3.0 % 3.4 % 0.0 % 0.3 %
MACRO Consolidated
--- --- --- --- --- --- --- --- --- --- ---
ACCUMULATED ANNUALIZED RATIOS 2Q20 3Q20 4Q20 1Q21 2Q21
Profitability & performance
Net interest margin 22.3 % 20.3 % 19.2 % 17.4 % 18.1 %
Net interest margin adjusted<br> (exc. FX) 21.6 % 19.5 % 18.4 % 16.6 % 17.4 %
Net fee income ratio 11.7 % 12.2 % 12.6 % 11.5 % 11.8 %
Efficiency ratio 33.6 % 34.7 % 35.7 % 35.7 % 37.0 %
Net fee income as % of A&G<br> Expenses 34.9 % 35.1 % 35.3 % 32.2 % 32.0 %
Return on average assets 4.9 % 4.1 % 3.5 % 1.1 % 1.7 %
Return on average equity 21.9 % 19.5 % 16.8 % 5.4 % 7.8 %
Liquidity
Loans as a percentage of total<br> deposits 56.0 % 48.2 % 52.7 % 58.0 % 55.4 %
Liquid assets as a percentage<br> of total deposits 84.0 % 87.0 % 90.0 % 94.0 % 93.0 %
Capital
Total equity as a percentage<br> of total assets 19.1 % 18.3 % 19.2 % 22.2 % 22.5 %
Regulatory capital as % of APR 32.2 % 34.8 % 34.2 % 37.7 % 38.3 %
Asset Quality
Allowances over total loans 2.5 % 2.9 % 3.5 % 3.7 % 3.8 %
Non-performing financing as a<br> percentage of total financing 1.5 % 1.1 % 0.8 % 0.9 % 1.7 %
Coverage ratio w/allowances 210.7 % 303.0 % 479.3 % 387.8 % 212.9 %
Cost of Risk 2.9 % 2.9 % 3.1 % 0.0 % 0.2 % 
**21**

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 25, 2021

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