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
January 10, 2022
Commission File Number: 001-32827
MACRO BANK INC.
(Translation of registrant’s name intoEnglish)
Av. Eduardo Madero 1182
Buenos Aires C1106ACY
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 |
|---|
BANCO MACRO SA
Condensed interim financial statements as of September 30, 2021 together with the reports on review of interim financial statements.
BANCO MACRO SA
CONDENSED INTERIM FINANCIAL STATEMENTS AS OF SEPTEMBER 30, 2021
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: Loss allowance for expected credit losses on credit exposures not measured at fair value through profit or loss |
| Note 8: Other debt securities |
| Note 9: Equity instruments at fair value through profit or loss – Prisma Medios de Pago SA |
| Note 10: Fair value quantitative and qualitative disclosures |
| Note 11: Investment in associates and joint arrangements |
| Note 12: Other non-financial assets |
| Note 13: Related parties |
| Note 14: Other financial liabilities |
| Note 15: Provisions |
| Note 16: Other non-financial liabilities |
| Note 17: Analysis of financial assets to be recovered and financial liabilities to be settled |
| Note 18: Disclosures by operating segment |
| Note 19: Income tax |
| Note 20: Commissions income |
| Note 21: Differences in quoted prices of gold and foreign currency |
| Note 22: Other operating income |
| Note 23: Employee benefits |
| Note 24: Administrative expenses |
| Note 25: Other operating expenses |
| Note 26: Additional disclosures in the statement of cash flows |
| Note 27: Capital stock |
BANCO MACRO SA
CONDENSEDINTERIM FINANCIAL STATEMENTS AS OF SEPTEMBER 30, 2021
CONTENT (contd.)
| Notes to the condensed consolidated interim financial statements (contd.) |
|---|
| Note 28: Earnings per share – Dividends |
| Note 29: Deposit guarantee insurance |
| Note 30: Restricted assets |
| Note 31: Trust activities |
| Note 32: Compliance with CNV regulations |
| Note 33: Accounting items that identify the compliance with minimum cash requirements |
| Note 34: Penalties applied to the entity and summary proceedings initiated by the BCRA |
| Note 35: Corporate bonds issuance |
| Note 36: Off balance sheet transactions |
| Note 37: Tax and other claims |
| Note 38: Restriction on dividends distribution |
| Nota 39: Capital management, corporate governance transparency policy and risk management |
| Nota 40: Changes in the Argentine macroeconomic environment and financial and capital markets |
| Nota 41: Effects of the coronavirus (COVID – 19) outbreak |
| Note 42: Events after reporting period |
| Note 43: Accounting principles – explanation added for translation into English |
| 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 term |
| 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 |
| Separate exhibits |
BANCO MACRO SA
Corporate name: Banco Macro SA
Registered office: Avenida Eduardo Madero1182 – Autonomous City of Buenos Aires
Corporate purpose and main activity: Commercialbank
Central Bank of Argentina: Authorized as “Argentine private bank” under No. 285
Registration with the public Registry ofCommerce: 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 (Superintendencyof Corporations): Under No. 9777 – Corporations Book No. 119 Volume A of Sociedades Anónimas, dated October 8,1996
Personal tax identification number: 30-50001008-4
Registration dates of amendments to By-Laws:
August 18, 1972,August 10, 1973, July 15, 1975, May 30, 1985, September 3, 1992, May 10, 1993, November 8, 1995, October 8,1996, March 23, 1999, September 6, 1999, June 10, 2003, December 17, 2003, September 14, 2005, February 8,2006, July 11, 2006, July 14, 2009, November 14, 2012, August 2, 2014, July 15, 2019.
| CONDENSED CONSOLIDATED INTERIM STATEMENT OF FINANCIAL POSITION | ||||||
|---|---|---|---|---|---|---|
| AS OF SEPTEMBER 30, 2021 AND DECEMBER 31, 2020 | ||||||
| (Translation of the Financial statements originally issued in Spanish – See Note 43) | ||||||
| (Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of September 30, 2021, except that indicated otherwise) | ||||||
| Items | Notes | Exhibits | 09/30/2021 | 12/31/2020 | ||
| --- | --- | --- | --- | --- | --- | --- |
| ASSETS | ||||||
| Cash and Deposits in Banks | 10 | 166,007,954 | 178,000,766 | |||
| Cash | 24,958,374 | 34,818,350 | ||||
| Central Bank of Argentina | 93,618,895 | 68,472,008 | ||||
| Other Local and Foreign Entities | 47,424,510 | 74,703,201 | ||||
| Other | 6,175 | 7,207 | ||||
| Debt Securities at fair value through profit or loss | 5 and 10 | 21,242,285 | 75,302,845 | |||
| Derivative Financial Instruments | 10 | 935 | 9,905 | |||
| Repo transactions | 10 | 22,431,396 | 53,991,148 | |||
| Other financial assets | 6, 7 and 10 | R | 21,429,022 | 25,866,273 | ||
| Loans and other financing | 7 and 10 | B, C, D and R | 309,921,930 | 352,429,316 | ||
| Non-financial Public Sector | 2,677,579 | 4,950,764 | ||||
| Other Financial Entities | 1,702,591 | 2,496,253 | ||||
| Non-financial Private Sector and Foreign Residents | 305,541,760 | 344,982,299 | ||||
| Other Debt Securities | 7, 8 and 10 | R | 275,830,848 | 286,410,605 | ||
| Financial Assets delivered as guarantee | 10 and 30 | 18,851,709 | 19,574,519 | |||
| Equity Instruments at fair value through profit or loss | 9 and 10 | 2,085,495 | 2,277,634 | |||
| Investment in associates and joint arrangements | 11 | 393,143 | 279,264 | |||
| Property, plant and equipment | F | 48,151,974 | 47,071,751 | |||
| Intangible Assets | G | 7,542,909 | 6,990,414 | |||
| Deferred Income Tax Assets | 19 | 33,829 | 86,543 | |||
| Other Non-financial Assets | 12 | 2,205,536 | 3,056,973 | |||
| Non-current assets held for sale | 2,992,366 | 3,092,759 | ||||
| TOTAL ASSETS | 899,121,331 | 1,054,440,715 |
| - 1 - | Delfín Jorge Ezequiel Carballo<br> Chairperson |
| --- | --- | | CONDENSED CONSOLIDATED INTERIM STATEMENT OF FINANCIAL POSITION | | --- | | AS OF SEPTEMBER 30, 2021 AND DECEMBER 31, 2020 | | (Translation of the Financial statements originally issued in Spanish – See Note 43) | | (Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of September 30, 2021, except that indicated otherwise) | | Items | Notes | Exhibits | 09/30/2021 | | | 12/31/2020 | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | LIABILITIES | | | | | | | | | | Deposits | 10 | H and I | | 542,154,341 | | | 669,370,029 | | | Non-financial Public Sector | | | | 53,929,846 | | | 100,753,677 | | | Financial Sector | | | | 829,782 | | | 953,796 | | | Non-financial Private Sector and Foreign Residents | | | | 487,394,713 | | | 567,662,556 | | | Liabilities at fair value through profit or loss | 10 | | | 2,220,152 | | | | | | Derivative Financial Instruments | 10 | I | | 2,440 | | | 315 | | | Repo Transactions | 10 | I | | 1,810,254 | | | 847,183 | | | Other Financial Liabilities | 10 and 14 | I | | 46,608,632 | | | 67,405,059 | | | Financing received from the Central Bank of Argentina and other financial institutions | 10 | I | | 595,242 | | | 1,258,785 | | | Issued Corporate Bonds | 10 and 35 | I | | 2,538,119 | | | 6,747,782 | | | Current Income Tax Liabilities | 19 | | | 2,432,551 | | | 7,046,929 | | | Subordinated Corporate Bonds | 10 and 35 | I | | 41,039,615 | | | 46,976,966 | | | Provisions | 15 | J and R | | 1,370,453 | | | 1,786,649 | | | Deferred Income Tax Liabilities | | | | 7,812,247 | | | 8,616,356 | | | Other Non-financial Liabilities | 16 | | | 43,687,701 | | | 41,576,269 | | | TOTAL LIABILITIES | | | | 692,271,747 | | | 851,632,322 | | | SHAREHOLDERS’ EQUITY | | | | | | | | | | Capital Stock | 27 | | | 639,413 | | | 639,413 | | | Non-capital contributions | | | | 12,429,781 | | | 12,429,781 | | | Adjustments to Shareholders’ Equity | | | | 73,737,944 | | | 73,737,944 | | | Earnings Reserved | | | | 110,539,792 | | | 150,402,396 | | | Unappropriated Retained Earnings | | | | (8,093,918 | ) | | (69,316,862 | ) | | Other Comprehensive Income | 3 | | | 2,541,617 | | | 1,539,038 | | | Net Income of the period/ fiscal year | | | | 15,052,094 | | | 33,374,121 | | | Net Shareholders’ Equity attributable to controlling interest | | | | 206,846,723 | | | 202,805,831 | | | Net Shareholders’ Equity attributable to non-controlling interests | | | | 2,861 | | | 2,562 | | | TOTAL SHAREHOLDERS’ EQUITY | | | | 206,849,584 | | | 202,808,393 | | | TOTAL SHAREHOLDERS’ EQUITY AND LIABILITIES | | | | 899,121,331 | | | 1,054,440,715 | |
The notes 1 to 43 to the condensed consolidated interim financial statements and the exhibits B to D, F to J, L, Q and R are an integral part of the condensed consolidated interim financial statements.
| - 2 - | Delfín Jorge Ezequiel Carballo<br> Chairperson |
| --- | --- | | CONDENSED CONSOLIDATED INTERIM STATEMENT OF INCOME | | --- | | FOR THE THREE AND NINE MONTH PERIODS ENDED SEPTEMBER 30, 2021 AND 2020 | | (Translation of the Financial statements originally issued in Spanish – See Note 43) | | (Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of September 30, 2021, except that indicated otherwise) | | Items | Notes | Exhibits | Quarter ended 09/30/2021 | | | Accumulated<br><br> from <br><br>beginning of<br><br> year up to<br><br> 09/30/2021 | | | Quarter ended 09/30/2020 | | | Accumulated<br><br> from<br><br> beginning of<br><br> year up to<br><br> 09/30/2020 | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | Interest income | | Q | | 49,892,491 | | | 152,930,878 | | | 56,093,210 | | | 158,150,068 | | | Interest expense | | Q | | (20,145,289 | ) | | (66,442,632 | ) | | (23,832,102 | ) | | (56,148,972 | ) | | Net Interest income | | | | 29,747,202 | | | 86,488,246 | | | 32,261,108 | | | 102,001,096 | | | Commissions income | 20 | Q | | 8,666,847 | | | 24,715,391 | | | 8,748,541 | | | 25,398,980 | | | Commissions expense | | Q | | (841,787 | ) | | (2,309,835 | ) | | (711,554 | ) | | (2,067,488 | ) | | Net Commissions income | | | | 7,825,060 | | | 22,405,556 | | | 8,036,987 | | | 23,331,492 | | | Subtotal (Net Interest income +Net Commissions income) | | | | 37,572,262 | | | 108,893,802 | | | 40,298,095 | | | 125,332,588 | | | Profit from measurement of financial instruments at fair value through profit or loss | | Q | | 3,456,675 | | | 14,759,470 | | | 4,116,258 | | | 10,688,133 | | | Profit from sold or derecognized assets at amortized cost | | | | 2 | | | 139,152 | | | 93,373 | | | 1,598,657 | | | Differences in quoted prices of gold and foreign currency | 21 | | | 591,568 | | | 2,765,485 | | | 1,840,237 | | | 4,050,596 | | | Other operating income | 22 | | | 1,763,621 | | | 5,303,461 | | | 1,801,495 | | | 5,448,686 | | | Allowance for loan losses | | | | (211,531 | ) | | (446,677 | ) | | (2,667,614 | ) | | (8,003,546 | ) | | Net Operating Income | | | | 43,172,597 | | | 131,414,693 | | | 45,481,844 | | | 139,115,114 | | | Employee benefits | 23 | | | (9,023,811 | ) | | (26,998,186 | ) | | (9,451,742 | ) | | (27,038,578 | ) | | Administrative expenses | 24 | | | (4,492,519 | ) | | (12,880,284 | ) | | (5,183,582 | ) | | (14,576,411 | ) | | Depreciation and amortization of fixed assets | | F and G | | (1,657,186 | ) | | (4,786,342 | ) | | (1,548,122 | ) | | (4,505,303 | ) | | Other Operating Expenses | 25 | | | (7,541,905 | ) | | (22,099,677 | ) | | (6,993,762 | ) | | (21,201,187 | ) | | Operating Income | | | | 20,457,176 | | | 64,650,204 | | | 22,304,636 | | | 71,793,635 | | | Income from associates and joint arrangements | 11 | | | (1,293 | ) | | 47,453 | | | 22,957 | | | 72,010 | | | Loss on net monetary position | | | | (12,816,472 | ) | | (45,144,225 | ) | | (10,132,807 | ) | | (26,917,957 | ) | | Income before tax on continuing operations | | | | 7,639,411 | | | 19,553,432 | | | 12,194,786 | | | 44,947,688 | | | Income tax on continuing operations | 19.c) | | | (285,036 | ) | | (4,501,039 | ) | | (4,824,319 | ) | | (15,920,671 | ) | | Net Income from continuing operations | | | | 7,354,375 | | | 15,052,393 | | | 7,370,467 | | | 29,027,017 | | | Net Income of the period | | | | 7,354,375 | | | 15,052,393 | | | 7,370,467 | | | 29,027,017 | | | Net Income of the period attributable to controlling interest | | | | 7,354,252 | | | 15,052,094 | | | 7,370,327 | | | 29,026,610 | | | Net Income of the period attributable to non-controlling interest | | | | 123 | | | 299 | | | 140 | | | 407 | |
| - 3 - | Delfín Jorge Ezequiel Carballo<br> Chairperson |
| --- | --- | | CONSOLIDATED EARNINGS PER SHARE | | --- | | FOR THE THREE AND NINE MONTH PERIODS ENDED SEPTEMBER 30, 2021 AND 2020 | | (Translation of the Financial statements originally issued in Spanish – See Note 43) | | (Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of September 30, 2021, except that indicated otherwise) | | Items | Quarter ended<br><br> 09/30/2021 | | Accumulated<br><br> from <br><br>beginning of<br><br> year up to<br><br> 09/30/2021 | | Quarter ended<br><br> 09/30/2020 | | Accumulated<br><br> from <br><br>beginning of<br><br> year up to<br><br> 09/30/2020 | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | Net Profit attributable to Parent’s shareholders | | 7,354,252 | | 15,052,094 | | 7,370,327 | | 29,026,610 | | Plus: Potential diluted earnings per common share | | | | | | | | | | Net Profit attributable to Parent’s shareholders adjusted as per diluted earnings | | 7,354,252 | | 15,052,094 | | 7,370,327 | | 29,026,610 | | Weighted average of outstanding common shares of the period | | 639,413 | | 639,413 | | 639,413 | | 639,413 | | Plus: Weighted average of the number of additional common shares with dilution effects | | | | | | | | | | Weighted average of outstanding common shares of the period adjusted as per dilution effect | | 639,413 | | 639,413 | | 639,413 | | 639,413 | | Basic earnings per share (in pesos) | | 11.5016 | | 23.5405 | | 11.5267 | | 45.3957 |
| - 4 - | Delfín Jorge Ezequiel Carballo<br> Chairperson |
| --- | --- |
CONDENSED CONSOLIDATED INTERIM STATEMENT OF OTHER COMPREHENSIVE INCOME
FOR THE THREE AND NINE MONTH PERIODS ENDED SEPTEMBER 30, 2021 AND 2020
(Translation of the Financial statements originally issued in Spanish – See Note 43)
(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of September 30, 2021, except that indicated otherwise)
| Items | Notes | Exhibits | Quarter<br><br> ended <br><br>09/30/2021 | Accumulated<br><br> from <br><br>beginning of <br><br>year up to <br><br>09/30/2021 | Quarter<br><br> ended <br><br>09/30/2020 | Accumulated<br><br> from <br><br>beginning of <br><br>year up to <br><br>09/30/2020 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net Income of the period | 7,354,375 | 15,052,393 | 7,370,467 | 29,027,017 | ||||||||||
| Items of Other Comprehensive Income that will be reclassified to profit or loss | ||||||||||||||
| Foreign currency translation differences in financial statements conversion | (184,306 | ) | (520,419 | ) | 79,007 | 194,322 | ||||||||
| Foreign currency translation differences of the period | (184,306 | ) | (520,419 | ) | 79,007 | 194,322 | ||||||||
| Profit or losses for financial instruments measured at fair value through other comprehensive income (FVOCI) (IFRS 9(4.1.2)(a)) | 241,444 | 1,522,998 | 1,084,864 | (1,253,140 | ) | |||||||||
| Profit or losses of the period from financial instruments at fair value through other comprehensive income (FVOCI) | Q | (257,039 | ) | 29,204 | (393,366 | ) | (1,164,345 | ) | ||||||
| Adjustment for reclassification of period | 619,520 | 2,206,112 | 1,550,089 | 2,605,137 | ||||||||||
| Income tax | 19.c) | (121,037 | ) | (712,318 | ) | (71,859 | ) | (187,652 | ) | |||||
| Total Other Comprehensive Income that is subsequently reclassified to profit or loss | 57,138 | 1,002,579 | 1,163,871 | 1,447,462 | ||||||||||
| Total Other Comprehensive Income | 57,138 | 1,002,579 | 1,163,871 | 1,447,462 | ||||||||||
| Total Comprehensive Income of the period | 7,411,513 | 16,054,972 | 8,534,338 | 30,474,479 | ||||||||||
| Total Comprehensive Income attributable to controlling interest | 7,411,390 | 16,054,673 | 8,534,198 | 30,474,072 | ||||||||||
| Total Comprehensive Income attributable to non-controlling interest | 123 | 299 | 140 | 407 |
The notes 1 to 43 to the condensed consolidated interim financial statements and the exhibits B to D, F to J, L, Q and R are an integral part of the condensed consolidated interim financial statements.
| - 5 - | Delfín Jorge Ezequiel Carballo<br> Chairperson |
| --- | --- |
CONDENSED CONSOLIDATED INTERIM STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY
FOR THE NINE MONTH PERIOD ENDED SEPTEMBER 30, 2021
(Translation of the Financial statements originally issued in Spanish – See Note 43)
(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of September 30, 2021, except that indicated otherwise)
| Capital<br><br> stock | Non-capital<br><br> Contributions | Other<br> Comprehensive<br> Income | Earnings<br><br> Reserved | |||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Changes | Notes | Outstanding<br><br> shares | Additional<br><br> paid-in <br><br> capital | Adjustments<br> <br><br> to <br><br> Shareholders’<br><br> Equity | Accumulative<br><br> foreign <br><br> currency<br><br> translation<br><br> difference in <br><br> financial <br><br> statements<br><br> conversion | Other<br><br> (1) | Legal | Other | Unappropriated<br><br> Retained <br><br> Earnings (1) | Total<br><br> Controlling <br><br> Interests | Total<br> Non-<br><br> Controlling<br><br> Interests | Total<br> <br><br> Equity | ||||||||||||||||
| Restated amount at the beginning of the fiscal year | 639,413 | 12,429,781 | 73,737,944 | 1,239,890 | 299,148 | 43,950,705 | 106,451,691 | (35,942,741 | ) | 202,805,831 | 2,562 | 202,808,393 | ||||||||||||||||
| Total comprehensive income of<br> the period | ||||||||||||||||||||||||||||
| - Net income of the period | 15,052,094 | 15,052,094 | 299 | 15,052,393 | ||||||||||||||||||||||||
| - Other comprehensive income<br> of the period | (520,419 | ) | 1,522,998 | 1,002,579 | 1,002,579 | |||||||||||||||||||||||
| Distribution of unappropriated<br> retained earnings as approved by Shareholders´ Meeting held on April 30, 2021 | ||||||||||||||||||||||||||||
| -Cash dividends | 28 | (11,650,368 | ) | (11,650,368 | ) | (11,650,368 | ) | |||||||||||||||||||||
| -Absorption of loss | 38 | |||||||||||||||||||||||||||
| Voluntary reserve | (605 | ) | 605 | |||||||||||||||||||||||||
| Voluntary reserve for future<br> distribution earnings | (27,848,218 | ) | 27,848,218 | |||||||||||||||||||||||||
| Personal<br> property tax on business corporation | (363,413 | ) | (363,413 | ) | (363,413 | ) | ||||||||||||||||||||||
| Amount<br> at the end of the period | 639,413 | 12,429,781 | 73,737,944 | 719,471 | 1,822,146 | 43,950,705 | 66,589,087 | 6,958,176 | 206,846,723 | 2,861 | 206,849,584 |
CONDENSED CONSOLIDATED INTERIM STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY
FOR THE NINE MONTH PERIOD ENDED SEPTEMBER 30, 2020
(Translation of the Financial statements originally issued in Spanish – See Note 43)
(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of September 30, 2021, except that indicated otherwise)
| Capital stock | Non-capital Contributions | Other Comprehensive Income | Earnings Reserved | |||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Changes | Notes | Outstanding shares | Additional paid-in capital | Adjustments to Shareholders’ Equity | Accumulative foreign currency translation difference in financial statements conversion | Other (1) | Legal | Other | Unappropriated Retained Earnings (1) | Total Controlling Interests | Total Non- Controlling Interests | Total Equity | ||||||||||||||||
| Restated amount at the<br> beginning of the fiscal year | 639,413 | 12,429,781 | 73,737,944 | 1,075,728 | (821,241 | ) | 28,736,032 | 73,676,513 | 6,037,784 | 195,511,954 | 2,615 | 195,514,569 | ||||||||||||||||
| Total comprehensive income<br> of the period | ||||||||||||||||||||||||||||
| - Net income of the period | 29,026,610 | 29,026,610 | 407 | 29,027,017 | ||||||||||||||||||||||||
| - Other comprehensive<br> income of the period | 194,322 | 1,253,140 | 1,447,462 | 1,447,462 | ||||||||||||||||||||||||
| Distribution of unappropriated<br> retained earnings as approved by Shareholders´ Meeting held on April 30, 2020 | ||||||||||||||||||||||||||||
| -Legal reserve | 15,214,673 | (15,214,673 | ) | |||||||||||||||||||||||||
| -Normative reserve | 60,139,973 | (60,139,973 | ) | |||||||||||||||||||||||||
| -Cash dividends | 28 | (21,793,062 | ) | (21,793,062 | ) | (21,793,062 | ) | |||||||||||||||||||||
| Other changes | (548 | ) | (548 | ) | ||||||||||||||||||||||||
| Amount at the end of the period | 639,413 | 12,429,781 | 73,737,944 | 1,270,050 | 431,899 | 43,950,705 | 112,023,424 | (40,290,252 | ) | 204,192,964 | 2,474 | 204,195,438 |
(1) Amounts at the beginning of the fiscal year were adjusted in accordance with Communication “A” 7211. See also Note 3 section “New standards adopted in the fiscal year”.
The notes 1 to 43 to the condensed consolidated interim financial statements and the exhibits B to D, F to J, L, Q and R are an integral part of the condensed consolidated interim financial statements.
| - 6 - | Delfín Jorge Ezequiel Carballo<br> Chairperson |
| --- | --- |
CONDENSED CONSOLIDATED INTERIM STATEMENT OF CASH FLOWS
FOR THE NINE MONTH PERIODS ENDED SEPTEMBER 30, 2021 AND 2020
(Translation of the Financial statements originally issued in Spanish – See Note 43)
(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of September 30, 2021, except that indicated otherwise)
| Items | Notes | 09/30/2021 | 09/30/2020 | ||||
|---|---|---|---|---|---|---|---|
| Cash flows from operating activities | |||||||
| Income of the period before Income Tax | 19,553,432 | 44,947,688 | |||||
| Adjustment for the total monetary effect of the period | 45,144,225 | 26,917,957 | |||||
| Adjustments to obtain cash flows from operating activities: | |||||||
| Amortization and depreciation | 4,786,342 | 4,505,303 | |||||
| Allowance for loan losses | 446,677 | 8,003,546 | |||||
| Difference in quoted prices of foreign currency | (12,667,148 | ) | (17,417,091 | ) | |||
| Other adjustments | 36,234,495 | 28,138,444 | |||||
| Net increase/(decrease) from operating assets: | |||||||
| Debt Securities at fair value through profit and loss | 54,128,702 | (14,647,409 | ) | ||||
| Derivative financial instruments | 8,970 | 73,641 | |||||
| Repo transactions | 31,559,752 | (80,261,515 | ) | ||||
| Loans and other financing | |||||||
| Non-financial public sector | 2,273,185 | 5,914,860 | |||||
| Other financial entities | 793,662 | 4,645,891 | |||||
| Non-financial private sector and foreign residents | 38,731,881 | 30,892,967 | |||||
| Other debt securities | (31,318,234 | ) | (133,428,616 | ) | |||
| Financial assets delivered as guarantee | 722,810 | 1,256,291 | |||||
| Equity instruments at fair value through profit or loss | 192,139 | 384,294 | |||||
| Other assets | 4,257,123 | (13,316,680 | ) | ||||
| Net increase/(decrease) from operating liabilities: | |||||||
| Deposits | |||||||
| Non-financial public sector | (46,823,831 | ) | 128,322,047 | ||||
| Financial sector | (124,014 | ) | 86,593 | ||||
| Non-financial private sector and foreign residents | (80,267,843 | ) | 132,705,132 | ||||
| Liabilities at fair value through profit or loss | 2,220,152 | ||||||
| Derivative financial instruments | 2,125 | (1,432,762 | ) | ||||
| Repo transactions | 963,071 | (1,869,236 | ) | ||||
| Other liabilities | (22,653,756 | ) | 472,212 | ||||
| Payments for Income Tax | (8,530,212 | ) | (9,014,120 | ) | |||
| Total cash from operating activities (A) | 39,633,705 | 145,879,437 |
| - 7 - | Delfín Jorge Ezequiel Carballo<br> Chairperson |
| --- | --- |
CONDENSED CONSOLIDATED INTERIM STATEMENT OF CASH FLOWS
FOR THE NINE MONTH PERIODS ENDED SEPTEMBER 30, 2021 AND 2020
(Translation of the Financial statements originally issued in Spanish – See Note 43)
(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of September 30, 2021, except that indicated otherwise)
| Items | Notes | 09/30/2021 | 09/30/2020 | ||||
|---|---|---|---|---|---|---|---|
| Cash flows from investing activities | |||||||
| Payments: | |||||||
| Acquisition of PPE, intangible assets and other assets | (5,346,510 | ) | (3,694,456 | ) | |||
| Total cash used in investing activities (B) | (5,346,510 | ) | (3,694,456 | ) | |||
| Cash flows from financing activities | |||||||
| Payments: | |||||||
| Dividends | (548 | ) | |||||
| Non subordinated corporate bonds | (3,472,661 | ) | (2,245,857 | ) | |||
| Financing from local financial entities | (541,940 | ) | (3,039,956 | ) | |||
| Subordinated Corporate Bonds | (1,425,876 | ) | (1,556,585 | ) | |||
| Other payments related to financing activities | (484,226 | ) | (563,207 | ) | |||
| Collections/Incomes: | |||||||
| Central Bank of Argentina | 6,526 | ||||||
| Total cash used in financing activities (C) | (5,924,703 | ) | (7,399,627 | ) | |||
| Effect of exchange rate fluctuations (D) | 20,027,616 | 29,100,387 | |||||
| Monetary effect on cash and cash equivalents (E) | (102,295,310 | ) | (66,887,853 | ) | |||
| Net (decrease)/increase in cash and cash equivalents (A+B+C+D+E) | (53,905,202 | ) | 96,997,888 | ||||
| Restated cash and cash equivalents at the beginning of the fiscal year | 26 | 361,027,582 | 274,817,859 | ||||
| Cash and cash equivalents at the end of the period | 26 | 307,122,380 | 371,815,747 |
The notes 1 to 43 to the condensed consolidated interim financial statements and the exhibits B to D, F to J, L, Q and R are an integral part of the condensed consolidated interim financial statements.
| - 8 - | Delfín Jorge Ezequiel Carballo<br> Chairperson |
| --- | --- |
NOTES TO THE CONDENSEDCONSOLIDATED INTERIM FINANCIAL STATEMENTS AS OF SEPTEMBER 30, 2021
(Translation of Financial statements originally issued in Spanish – See Note 43)
(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of September 30, 2021, unless otherwise expressly stated)
| 1. | CORPORATE INFORMATION |
|---|
Banco Macro SA (hereinafter, the Bank), is a stock corporation (sociedad anónima), organized in the Argentine Republic that offers traditional banking products and services to companies, including those companies operating in regional economies as well as to individuals, thus strengthening its goal to be a multiservice bank. In addition, through its subsidiaries, the Bank performs transactions as a trustee agent, manager and administrator of mutual funds and renders stock exchange services and electronic payments services.
Macro Compañía Financiera SA was created in 1977, as a non-banking financial institution. In May 1988, it received the authorization to operate as a commercial bank and it was incorporated as Banco Macro SA. Subsequently, as a result of the merger process with other entities, it adopted other names (among them, Banco Macro Bansud SA) and since August 2006, Banco Macro SA.
The Bank’s shares have been publicly listed on Bolsas y Mercados Argentinos (BYMA) since November 1994; and as from March 24, 2006 they are listed on the New York Stock Exchange (NYSE). Additionally, on October 15, 2015, they were authorized to be listed on the Mercado Abierto Electrónico SA (MAE).
Since 1994, Banco Macro SA’s market strategy was mainly focused on the regional areas outside the 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 2020 and 2021, the Bank made contributions in the company Play Digital SA for a total amount of 253,557 (not restated). On September 28, 2021, the Extraordinary Shareholders’ Meeting of Play Digital SA accepted the last irrevocable capital contributions made on March 4 and May 12, 2021 in which the Bank subscribed 96,539,571 common, registered shares, with a face value of Ps. 1, amounting to 215,717,076 shares. As a consequence, after the last acceptance of capital contribution, the Bank’s interest in Play Digital SA amounted to 10.020% while before the mentioned acceptance amounted to 9.9545%. 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.
Additionally, on October 1, 2021, Banco Macro SA decided to exercise a call option to reach 24.99% of the equity interest in Fintech SGR. Consequently, the Bank has 49.9939% of the Class B shares belonging to protector partners. The amount paid on October 15 was 33,488. The purpose of this company is to enable small and medium-sized companies (PyMES, for its acronym in Spanish), to access to credit by posting guarantees.
In addition, on October 15, 2021 Banco Macro SA paid 50,850 in order to purchase share representing 50% of the capital stock and votes of Finova SA. The main purpose of this company is to develop and market the website www.facturbo.com.ar, a digital solution that allows customers to negotiate credit instruments issued and accepted by large companies in favor of small and medium-sized companies (MiPyMES, for its acronym in Spanish).
On November 24, 2021, 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 September 30, 2021 and December 31, 2020, the deposits held by the Misiones Provincial Government with the Bank amounted to 12,187,202 and 22,241,609 (including 1,073,358 and 1,107,401, related to court deposits), respectively.
- 9 -
NOTES TO THE CONDENSEDCONSOLIDATED INTERIM FINANCIAL STATEMENTS AS OF SEPTEMBER 30, 2021
(Translation of Financial statements originally issued in Spanish – See Note 43)
(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of September 30, 2021, unless otherwise expressly stated)
| 2.2. | Agreement with the Salta Provincial Government |
|---|
The Bank and the Salta Provincial Government entered into a special-relationship agreement whereby the Bank was appointed, for a ten-year term since March 1, 1996, as the Provincial Government’s exclusive financial agent as well as revenue collection and obligation payment agent.
On February 22, 2005, and August 22, 2014, extensions to such agreements were agreed upon, making it currently effective through February 28, 2026.
As of September 30, 2021 and December 31, 2020, the deposits held by the Salta Provincial Government with the Bank amounted to 5,315,401 and 5,172,994 (including 2,075,368 and 1,699,555, related to court deposits), respectively.
| 2.3. | Agreement with the Jujuy Provincial Government |
|---|
The Bank and the Jujuy Provincial Government entered into a special-relationship agreement whereby the Bank was appointed, for a ten-year term since January 12, 1998, as the Provincial Government’s exclusive financial agent as well as revenue collection and obligation payment agent.
On April 29, 2005 and July 8, 2014, extensions to such agreement were agreed upon, making it currently effective through September 30, 2024.
As of September 30, 2021 and December 31, 2020, the deposits held by the Jujuy Provincial Government with the Bank amounted to 11,788,956 and 14,943,219 (including 1,915,037 and 1,600,241, 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 Municipalities Governments are effective through years 2031, 2023 and 2025, respectively.
As of September 30, 2021 and December 31, 2020, 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 16,667,000 and 19,550,026 (including 4,748,966 and 4,843,839, related to court deposits), respectively.
Additionally, as of September 30, 2021 and December 31, 2020, the Bank granted loans to the Tucumán Provincial Government for an amount of 2,145,176 and 3,917,842, 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 Central Bank of Argentina (BCRA, for its acronym in Spanish) in its Communiqué “A” 6114 as supplementary. 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).
- 10 -
NOTES TO THE CONDENSEDCONSOLIDATED INTERIM FINANCIAL STATEMENTS AS OF SEPTEMBER 30, 2021
(Translation of Financial statements originally issued in Spanish – See Note 43)
(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of September 30, 2021, unless otherwise expressly stated)
The transitory exceptions and regulatory guidelines established by BCRA to the application of effective IFRS, that have affected the preparation of these condensed consolidated interim financial statements are as follows:
| a) | According to Communiqué “A” 6114, as supplementary, and in the convergence process<br>through IFRS, the BCRA established that since fiscal years beginning on January 1, 2020 included, financial institutions defined<br>as “Group A” by BCRA rules, in which the Bank is included, begin to apply section 5.5 “Impairment” of the IFRS<br>9 “Financial Instruments” (sections B5.5.1 to B5.5.55), except for the temporary exclusion for the debt securities of the<br>non-financial public sector established by BCRA Communiqué “A” 6847. As of the date of issuance of these condensed<br>consolidated interim financial statements, the Bank is in the process of quantifying the effect of the full application of the mentioned<br>standard. |
|---|---|
| b) | Additionally, the Bank received on March 12 and 22, 2021 and April 29, 2019 Memorandums from<br>the BCRA, which established specifics guidelines related to the measurement of the Bank’s holding in Prisma Medios de Pago SA as<br>explained in note 9. Considering such guidelines, the Bank adjusted the fair value previously determined. As of the date of issuance of<br>these condensed consolidated interim financial statements, the Bank is in the process of quantifying the difference over such fair value<br>and the fair value calculated according to IFRS, which could be material. |
| --- | --- |
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” 7183. Generally, the BCRA does not allow the anticipated application of any IFRS, unless otherwise expressly stated.
Basis for the preparation and consolidation
These condensed consolidated interim financial statements as of September 30, 2021, 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 sections “measuring unit” and “new standards adopted in the fiscal year” 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, 2020, 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, 2020, 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, 2020, already issued.
As of September 30, 2021 and December 31, 2020, 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 SA (1) and (2) | Ave. Eduardo Madero 1182 – CABA | Argentina | Stock exchange services |
| Macro Fiducia SA | 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 CONDENSEDCONSOLIDATED INTERIM FINANCIAL STATEMENTS AS OF SEPTEMBER 30, 2021
(Translation of Financial statements originally issued in Spanish – See Note 43)
(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of September 30, 2021, unless otherwise expressly stated)
| Subsidiaries | Principal Place of Business | Country | Main Activity |
|---|---|---|---|
| Macro Bank Limited (3) | Caves Village, Building 8 Office 1 – West Bay St., Nassau | Bahamas | Banking entity |
| Argenpay SAU | Ave. Eduardo Madero 1182 – CABA | Argentina | Electronic payments services |
| (1) | Consolidated with Macro Fondos SGFCISA (80.90% equity interest and voting rights). | ||
| --- | --- | ||
| (2) | The indirect interest of Banco Macro SA is held through Macro Fiducia SA. | ||
| --- | --- | ||
| (3) | Consolidated with Sud Asesores (ROU) SA (100% voting rights – Equity interest 28,182). | ||
| --- | --- |
As of September 30, 2021 and December 31, 2020, the Bank’s equity interest and voting rights 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<br><br> stock | Voting <br><br>rights | |||||||||
| Macro Securities SA | Common | 12,776,680 | 99.925 | % | 99.932 | % | 0.075 | % | 0.068 | % | |||||
| Macro Fiducia SA | Common | 46,935,318 | 99.046 | % | 99.046 | % | 0.954 | % | 0.954 | % | |||||
| Macro Fondos SGFCISA | Common | 327,183 | 99.939 | % | 100.00 | % | 0.061 | % | |||||||
| Macro Bank Limited | Common | 39,816,899 | 99.999 | % | 100.00 | % | 0.001 | % | |||||||
| Argenpay SAU | Common | 241,200,000 | 100.00 | % | 100.00 | % |
Total assets, liabilities and Shareholders’ equity of the Bank and all its subsidiaries as of September 30, 2021 and December 31, 2020 are as follows:
| Balances as of 09/30/2021 | Banco Macro<br><br> SA | Macro Bank<br><br> Limited | Macro<br><br> Securities SA | Macro <br><br>Fiducia SA | Argenpay <br><br>SAU | Eliminations | Consolidated | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Assets | 884,371,361 | 15,081,709 | 12,396,688 | 112,246 | 638,140 | (13,478,813 | ) | 899,121,331 | |||||||
| Liabilities | 677,524,638 | 12,175,147 | 9,595,549 | 2,506 | 366,811 | (7,392,904 | ) | 692,271,747 | |||||||
| Equity attributable to the owners of the Bank | 206,846,723 | 2,906,562 | 2,685,118 | 109,740 | 271,329 | (5,972,749 | ) | 206,846,723 | |||||||
| Equity attributable to non-controlling interests | 116,021 | (113,160 | ) | 2,861 | |||||||||||
| Balances as of 12/31/2020 | Banco Macro<br><br> SA | Macro Bank<br><br> Limited | Macro<br><br> Securities SA | Macro <br><br>Fiducia SA | Argenpay <br><br>SAU | Eliminations | Consolidated | ||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Assets | 1,027,136,531 | 10,356,541 | 26,387,569 | 121,070 | 481,731 | (10,042,727 | ) | 1,054,440,715 | |||||||
| Liabilities | 824,330,700 | 6,789,134 | 24,101,325 | 7,369 | 232,450 | (3,828,656 | ) | 851,632,322 | |||||||
| Equity attributable to the owners of the Bank | 202,805,831 | 3,567,407 | 2,180,996 | 113,701 | 249,281 | (6,111,385 | ) | 202,805,831 | |||||||
| Equity attributable to non-controlling interests | 105,248 | (102,686 | ) | 2,562 |
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.
- 12 -
NOTES TO THE CONDENSEDCONSOLIDATED INTERIM FINANCIAL STATEMENTS AS OF SEPTEMBER 30, 2021
(Translation of Financial statements originally issued in Spanish – See Note 43)
(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of September 30, 2021, unless otherwise expressly stated)
Transcription into books
As of the date of issuance of these condensed consolidated interim financial statements, the same are in the process of being transcribed into the Books of Accounts of Banco Macro SA.
Figures expressed in thousands of pesos
These condensed consolidated interim financial statements disclose figures expressed in thousands of Argentine pesos in terms of purchasing power as of September 30, 2021, and are rounded up to the nearest amount in thousands of pesos, unless otherwise expressly stated (see section “Measuring unit” of this note).
Comparative information
The condensed consolidated interim statement of financial position as of September 30, 2021, is presented comparatively with year-end data of the immediately preceding fiscal year, while the statement of income and the statement of other comprehensive income for the three and nine-month periods ended September 30, 2021, and the statement of changes in shareholders’ equity and the statement of cash flows and cash equivalents for the nine-month period ended September 30, 2021, are presented comparatively with data as of the same periods of the immediately preceding fiscal year.
The figures related to comparative information have been restated to consider the changes in the general purchasing power of the functional currency and, as a result, are stated in terms of the measuring unit current at the end of the reporting period (see the following section “Measuring unit”).
Additionally and in accordance with Communiqué “A” 7211 certain reclassifications were made (see also section “New standards adopted in the fiscal year” of this note).
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) of the Bank, as of September 30, 2021, as established by IAS 29 “Financial Reporting in Hyperinflationary Economies” and considering, in addition, specifics rules established by BCRA through Communiqués “A” 6651, 6849, as amendments, which established to apply this method, on a mandatory basis, from fiscal years beginning on January 1, 2020, included and determined as the transition date on December 31, 2018.
According to IFRS, the restatement of financial statements is needed when the functional currency is the currency of a hyperinflationary economy. To achieve consistency in identifying an economic environment of that nature, IAS 29 establishes (i) certain qualitative indicators, not limited to, consisting of analyzing the general population behavior, prices, interest rates and wages with changes to a price index and the loss of purchasing power, and (ii) as quantitative characteristic, which is the most used condition in practice, to test if a three-year cumulative inflation rate is around 100% or more. Due to miscellaneous macroeconomic factors, the three-year inflation rate exceeds that figures and the Argentine government goals and other available estimates also indicate that this trend will not be reversed in the short term.
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 on Economic Sciences (FACPCE, for its acronym in Spanish), which combines consumer price index (CPI) on a monthly basis published by the Argentine Institute of Statistics and Censuses (INDEC, for its acronym in Spanish) since January 2017 (baseline month: December 2016) with the wholesale prices indexes published by the INDEC until that date. For the months of November and December 2015, for which the INDEC did not publish the wholesale price index (WPI) variation, the CPI variation for CABA was used.
Considering the abovementioned indexes, the inflation rate was 36.96% and 22.29% for the nine-month periods ended September 30, 2021 and 2020, respectively, and 36.14% for the fiscal year ended on December 31, 2020.
- 13 -
NOTES TO THE CONDENSED CONSOLIDATED INTERIMFINANCIAL STATEMENTS
AS OF SEPTEMBER 30, 2021
(Translation of Financial statements originally issued in Spanish – See Note 43)
(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of September 30, 2021, unless otherwise expressly stated)
Below is a description of the restating mechanism provided by IAS 29 and the restatement process for financial statements established by BCRA Communiqué “A” 6849, as supplementary:
Description of the main aspects of the restatement process for statements of financial position:
| (i) | Monetary items (the ones that 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, in some extend such effects. The net gain or loss<br>on a monetary basis is included in profit or loss of the period. |
|---|---|
| (ii) | Assets and liabilities subject to adjustments based on specific agreements is adjusted in accordance with<br>such agreements. |
| --- | --- |
| (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 of the period related<br>to depreciation of property, plant and equipment and amortization of Intangible Assets and other non-monetary cost are determined over<br>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 for the inflation during the same period 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 of the period. |
| --- | --- |
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. |
| --- | --- |
- 14 -
NOTES TO THE CONDENSED CONSOLIDATED INTERIMFINANCIAL STATEMENTS
AS OF SEPTEMBER 30, 2021
(Translation of Financial statements originally issued in Spanish – See Note 43)
(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of September 30, 2021, unless otherwise expressly stated)
| (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 determinated as a difference between the restated net asset<br>at 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 in terms of measuring unit current<br>at the transition date. |
| --- | --- |
| (ii) | After the transition date restatement abovementioned in (i), all equity’s components are restated<br>by applying a general price index as mentioned before from the beginning of the period and each variation of those components is restated<br>from the contribution date or from the moment it was produced by any other way, and the accumulated OCI balances are redetermined according<br>to the items that generated. |
| --- | --- |
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 equivalent”. |
| --- | --- |
Accountingjudgments, 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, 2020, already issued.
New standards adopted in thefiscal year
For the fiscal year beginning on January 1, 2021 the following amendment to accounting framework of the BCRA is effective:
Disclosures of the monetary effect from the application of the procedure for restating the financial statements (Communiqué “A” 7211):
As from this year, the Bank started recording in profit or loss of the period the monetary effect accrued from the monetary items measured at fair value through OCI. As a consequence, at the beginning of this fiscal year, the related unappropriated retained earnings were adjusted as a prior period earning adjustment (AREA, for its acronym in Spanish) in order to include the monetary effect of the abovementioned assets that would have been recorded in OCI as of such date.
Below are the amounts adjusted in the statement of income and other comprehensive income and in the statement of changes in the shareholders’ equity for the three and nine-month periods ended September 30, 2020, as a consequence of aforementioned procedure:
- 15 -
NOTES TO THE CONDENSED CONSOLIDATED INTERIMFINANCIAL STATEMENTS
AS OF SEPTEMBER 30, 2021
(Translation of Financial statements originally issued in Spanish – See Note 43)
(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of September 30, 2021, unless otherwise expressly stated)
| Before<br> amendment – restated | Amendment | After<br> amendment – restated | ||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Description | Quarter<br><br> ended<br><br> 09/30/2020 | Accumulated<br><br> from beginning<br><br> of year up to<br><br> 09/30/2020 | Quarter<br><br> ended<br><br> 09/30/2020 | Accumulated<br><br> from beginning<br><br> of year up to<br><br> 09/30/2020 | Quarter<br> ended<br><br> 09/30/2020 | Accumulated<br><br> from beginning <br><br> of year up to<br><br> 09/30/2020 | ||||||||||||
| Statement of income | ||||||||||||||||||
| (Loss) / Income from<br> measurement of financial instruments at fair value through profit or loss | (11,497,175 | ) | (21,874,336 | ) | 15,613,433 | 32,562,469 | 4,116,258 | 10,688,133 | ||||||||||
| Income / (Loss) on net monetary<br> position | 7,373,759 | 8,615,211 | (17,506,566 | ) | (35,533,168 | ) | (10,132,807 | ) | (26,917,957 | ) | ||||||||
| Statement of other comprehensive<br> income | ||||||||||||||||||
| Profit or losses for financial<br> instruments measured at fair value through other comprehensive income | (2,286,499 | ) | (4,135,044 | ) | 1,893,133 | 2,970,699 | (393,366 | ) | (1,164,345 | ) | ||||||||
| Statement of changes in<br> the shareholders’ equity | ||||||||||||||||||
| Unappropriated retained earnings | 9,263,460 | (37,307,299 | ) | (1,893,133 | ) | (2,982,953 | ) | 7,370,327 | (40,290,252 | ) | ||||||||
| Other comprehensive (loss) /<br> income – Other | (808,269 | ) | (2,551,054 | ) | 1,893,133 | 2,982,953 | 1,084,864 | 431,899 |
New pronouncements
Pursuant to Communiqué “A” 6114 of the BCRA, as new IFRS are approved and existing IFRS are amended or revoked and, once these changes are approved through the notices of approval issued by FACPCA, the BCRA shall issue a statement on the approval thereof for financial entities. Generally, financial institutions shall not apply any IFRS in advance, except as specifically authorized at the time of the adoption thereof.
The new and amended standards and interpretation that are issued, but not yet effective, up to the date of issuance of these condensed consolidated interim financial statements are disclosed below. The Bank intends to adopt these standards, if applicable, when they come effective.
| a) | Amendments to IFRS 3 - Reference to the Conceptual: the amendments are intended to replace a reference<br>to a previous version of the IASB’s Conceptual Framework with a reference to the current version issued in March 2018 without<br>significantly changing its requirements. The amendments add an exception to the recognition principle of IFRS 3 to avoid the issue of<br>potential ‘day 2’ gains or losses arising for liabilities and contingent liabilities that would be within the scope of IAS<br>37 “Provisions, Contingent Liabilities and Contingent Assets” or IFRIC 21 “Levies”, if incurred separately. The<br>exception requires entities to apply the criteria in IAS 37 or IFRIC 21, respectively, instead of the Conceptual Framework, to determine<br>whether a present obligation exists at the acquisition date. At the same time, the amendments add a new paragraph to IFRS 3 to clarify<br>that contingent assets do not qualify for recognition at the acquisition date. This amendment is applicable as of January 1, 2022.<br>The Bank does not expect this standard to have a material impact on the financial statements. |
|---|---|
| b) | Amendments to IAS 16 - Property, Plant and Equipment (PP&E): proceeds before Intended Use. The amendment<br>prohibits entities from deducting from the cost of an item of PP&E, any proceeds of the sale of items produced while bringing that<br>asset to the location and condition necessary for it to be capable of operating in the manner intended by management. Instead, an entity<br>recognizes the proceeds from selling such items, and the costs of producing those items, in profit or loss. This amendment is applicable<br>as of January 1, 2022. 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 SEPTEMBER 30, 2021
(Translation of Financial statements originally issued in Spanish – See Note 43)
(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of September 30, 2021, unless otherwise expressly stated)
| c) | Amendments to IAS 37 - Onerous Contracts – Costs of Fulfilling a Contract: the IASB issued amendments<br>to IAS 37 to specify which costs an entity needs to include when assessing whether a contract is onerous or loss-making. The amendments<br>apply a ‘directly related cost approach’. The costs that relate directly to a contract to provide goods or services include<br>both incremental costs and an allocation of costs directly related to contract. The impact of these amendments on Entities that previously<br>applied the incremental cost approach, is that they will see provisions increase to reflect the inclusion of costs related directly to<br>contract activities, whilst entities that previously recognized contract loss provisions using the guidance from the former standard, IAS<br>11 Construction Contracts, will be required to exclude the allocation of indirect overheads from their provisions. This amendment is applicable<br>as of January 1, 2022. The Bank does not expect this standard to have a material impact on the financial statements. |
|---|---|
| d) | Annual improvement cycle (2018-2020): the following is a summary of the amendments from the 2018-2020 annual improvements cycle: |
| --- | --- |
| · | IFRS 1 First-time Adoption of International Financial<br>Reporting – Subsidiary as a first-time adopter: the amendment permits a subsidiary that elects to apply paragraph D16(a) of<br>IFRS 1 to measure cumulative translation differences using the amounts reported by the parent, based on the parent’s date of transition<br>to IFRS. This amendment is also applied to an associate or joint venture that elects to apply paragraph D16(a) of IFRS 1. This amendment<br>is applicable as of January 1, 2022. |
| --- | --- |
| · | IFRS 9 Financial Instruments Fees in the ’10<br>per cent’ test for derecognition of financial liabilities: the amendment clarifies the fees that an entity includes when assessing<br>whether the terms of a new or modified financial liability are substantially different from the terms of them original financial liability.<br>These fees include only those paid or received between the borrower and the lender, including fees paid or received by either the borrower<br>or lender on the other’s behalf. This amendment is applicable as of January 1, 2022. |
| --- | --- |
| · | IFRS 16 “Leases” Illustrative examples<br>- Lease incentives: the amendment removes the Example 13 accompanying IFRS 16 of payments from the lessor relating to leasehold improvements.<br>This removes potential confusion regarding the treatment of lease incentives when applying IFRS 16. |
| --- | --- |
The Bank does not expect this standard to have a material impact on the financial statements.
| e) | Amendments to IAS 1 “Presentation of Financial Statements” and IFRS Practice Statement 2 –<br>Disclosures to accounting policies: the amendments require that an entity discloses its material accounting policies, instead of its significant<br>accounting policies. Further amendments explain how an entity can identify a material accounting policies and examples of when an accounting<br>policy likely. Therefore, a guidance with explanations and examples denominated “four-step materiality process” was developed.<br>This amendment is applicable as of January 1, 2023. The Bank does not expect this standard to have a material impact on the financial<br>statements. |
|---|---|
| f) | Amendments to IAS 8 “Accounting policies, changes in accounting estimates and Errors” –<br>Definition of Accounting Estimates: the amendments clarify the distinction between changes in accounting estimates and changes in accounting<br>policies and the correction of errors. Also, they clarify how entities use measurement techniques and inputs to develop accounting estimates.<br>The amended standard clarifies that the effects on an accounting estimate of a change in an input or a change in a measurement technique<br>are changes in accounting estimates if they do not result from the correction of prior period errors. The previous definition of a change<br>in accounting estimate specified that changes in accounting estimates may result from new information or new developments. Therefore,<br>such changes are not corrections of errors. This amendment is applicable as of January 1, 2023. The Bank does not expect this standard<br>to have a material impact on the financial statements. |
| --- | --- |
| g) | Amendments to IAS 12 “Income Tax” – Deferred Tax related to Assets and Liabilities arising<br>from a Single Transaction: the IASB issued amendments to IAS 12, which narrow the scope of the initial recognition exception under IAS<br>12, so that it no longer applies to transactions that give rise to equal taxable and deductible temporary differences. The amendments<br>clarify that where payments that settle a liability are deductible for tax purposes, it is a matter of professional judgement (having<br>considered the applicable tax law) whether such deductions are attributable for tax purposes to the liability recognized in the financial<br>statements (and interest expense) or to the related asset component (and interest expense). Professional judgement is important in determining<br>whether any temporary differences exist on initial recognition of the asset and liability. This amendment is applicable as of January 1,<br>2023. The Bank does not expect this standard to have a material impact on the financial statements. |
| --- | --- |
- 17 -
NOTES TO THE CONDENSED CONSOLIDATED INTERIMFINANCIAL STATEMENTS
AS OF SEPTEMBER 30, 2021
(Translation of Financial statements originally issued in Spanish – See Note 43)
(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of September 30, 2021, unless otherwise expressly stated)
| 4. | CONTINGENT TRANSACTIONS |
|---|
In order to meet specific financial needs of customers, the Bank’s credit policy also includes, among others, the granting of guarantees, securities, bonds, letters of credit and documentary credits. The Bank is also exposed to overdrafts and unused agreed credits on credit cards of the Bank. Since they imply a contingent obligation for the Bank, they expose the Bank to credit risks other than those recognized in statement of financial position and they are, therefore, an integral part of the total risk of the Bank.
As of September 30, 2021 and December 31, 2020, the Bank maintains the following maximum exposures to credit risk related to this type of transactions:
| Composition | 09/30/2021 | 12/31/2020 | ||||
|---|---|---|---|---|---|---|
| Undrawn commitments of credit cards and checking accounts | 145,836,899 | 130,411,743 | ||||
| Guarantees granted (1) | 1,790,688 | 1,756,855 | ||||
| Overdraft and unused agreed commitments (1) | 1,640,464 | 710,273 | ||||
| Letters of credit | 1,217,095 | |||||
| Subtotal | 149,268,051 | 134,095,966 | ||||
| Less: Allowance for expected credit losses (ECL) | (279,950 | ) | (23,566 | ) | ||
| Total | 148,988,101 | 134,072,400 | ||||
| (1) | Includes transactions not covered by BCRA debtor classification standard. For Guarantee granted, it includes<br>an amount of 29,208 and 221,693 as of September 30, 2021 and December 31, 2020, respectively. For Overdraft and unused agreed<br>commitments, it includes an amount of 898,449 and 111,789 as of September 30, 2021 and December 31, 2020, respectively. | |||||
| --- | --- |
Risks related to the contingent transactions described above have been evaluated and are controlled within the framework of the Bank’s credit risk policy, described in note 41 to the consolidated financial statements as of December 31, 2020, already issued.
| 5. | DEBT SECURITIES AT FAIR VALUE THROUGH PROFIT OR LOSS |
|---|
The composition of debt securities at fair value through profit or loss as of September 30, 2021 and December 31, 2020 is as follows:
| Composition | 09/30/2021 | 12/31/2020 | ||
|---|---|---|---|---|
| Government securities | 20,393,651 | 74,784,526 | ||
| Private securities | 848,634 | 518,319 | ||
| Total | 21,242,285 | 75,302,845 |
- 18 -
NOTES TO THE CONDENSED CONSOLIDATED INTERIMFINANCIAL STATEMENTS
AS OF SEPTEMBER 30, 2021
(Translation of Financial statements originally issued in Spanish – See Note 43)
(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of September 30, 2021, unless otherwise expressly stated)
| 6. | OTHER FINANCIAL ASSETS |
|---|
The composition of the other financial assets as of September 30, 2021 and December 31, 2020 is as follows:
| Composition | 09/30/2021 | 12/31/2020 | ||||
|---|---|---|---|---|---|---|
| Sundry debtors (see note 9) | 9,192,534 | 10,122,149 | ||||
| Receivables from spot sales of foreign currency pending settlement | 6,912,522 | 11,559,730 | ||||
| Receivables from other spot sales pending settlement | 2,617,489 | 2,358,532 | ||||
| Receivables from spot sales of government securities pending settlement | 1,552,417 | 758,667 | ||||
| Private securities | 838,580 | 829,202 | ||||
| Other | 340,876 | 263,915 | ||||
| Subtotal | 21,454,418 | 25,892,195 | ||||
| Less: Allowances for ECL | (25,396 | ) | (25,922 | ) | ||
| Total | 21,429,022 | 25,866,273 |
Disclosures related to allowance for ECL are detailed in note 7 “Loss allowance for credit losses on credit exposures not measured at fair value through profit or loss”, section 7.4.
| 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 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” for the annual consolidated financial statements as of December 31, 2020, 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.
- 19 -
NOTES TO THE CONDENSEDCONSOLIDATED INTERIM FINANCIAL STATEMENTS AS OF SEPTEMBER 30, 2021
(Translation of Financial statements originally issued in Spanish – See Note 43)
(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of September 30, 2021, unless otherwise expressly stated)
For the purpose of assessing the Bank’s credit risk exposure and identifying material credit risk concentration, disclosures regarding to credit risk of financial assets and items not recognized in the statement of financial position, are as follows:
| 7.1 | Loans and other financing measured at amortized cost |
|---|
According to the nature of the information to be disclosed and the loans characteristic, the Bank groups them as follows:
| Composition | 09/30/2021 | 12/31/2020 | ||||
|---|---|---|---|---|---|---|
| Loans and other financing | 319,075,359 | 366,156,068 | ||||
| Individual assessment | 80,896,878 | 101,749,402 | ||||
| Collective assessment | 238,178,481 | 264,406,666 | ||||
| Less: Allowance for ECL (1) | (9,153,429 | ) | (13,726,752 | ) | ||
| Total | 309,921,930 | 352,429,316 |
(1) As explain in note 3, ECL are not calculated to public sector exposures.
As is explained in note 41.1.3 “Adjustment for expected losses due to COVID-19 pandemic” to the consolidated financial statements as of December 31, 2020, already issued, the Bank make a special adjustment prospectively. As of September 30, 2021 and December 31, 2020 such adjustment amounted to 2,157,416 and 5,069,700, respectively.
The following table shows the credit quality and the debt balance to 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 the several guidelines related to flexible conditions for credit established by the BCRA to moderate the pandemic effects generated by COVID-19. The amounts are presented gross of the impairment allowances.
| 09/30/2021 | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Internal rating grade | Range PD | Stage 1 | Stage 2 | Stage 3 | Total | % | ||||||
| Performing | 298,562,960 | 9,390,502 | 307,953,462 | 96.51 | ||||||||
| High grade | 0.00% - 3.50% | 252,789,891 | 1,331,034 | 254,120,925 | 79.64 | |||||||
| Standard grade | 3.51% - 7.00% | 36,296,167 | 2,358,762 | 38,654,929 | 12.11 | |||||||
| Sub-standard grade | 7.01% - 33.00% | 9,476,902 | 5,700,706 | 15,177,608 | 4.76 | |||||||
| Past due but not impaired | 33.01% - 99.99% | 3,025,341 | 4,108,546 | 7,133,887 | 2.24 | |||||||
| Impaired | 100% | 3,988,010 | 3,988,010 | 1.25 | ||||||||
| Total | 301,588,301 | 13,499,048 | 3,988,010 | 319,075,359 | 100 | |||||||
| % | 94.52 | 4.23 | 1.25 | 100 | ||||||||
| 12/31/2020 | ||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Internal rating grade | Range PD | Stage 1 | Stage 2 | Stage 3 | Total | % | ||||||
| Performing | 339,864,922 | 11,870,572 | 351,735,494 | 96.06 | ||||||||
| High grade | 0.00% - 3.50% | 278,881,168 | 48,591 | 278,929,759 | 76.18 | |||||||
| Standard grade | 3.51% - 7.00% | 43,704,552 | 2,539,179 | 46,243,731 | 12.63 | |||||||
| Sub-standard grade | 7.01% - 33.00% | 17,279,202 | 9,282,802 | 26,562,004 | 7.25 | |||||||
| Past due but not impaired | 33.01% - 99.99% | 1,087,472 | 9,183,463 | 10,270,935 | 2.81 | |||||||
| Impaired | 100% | 4,149,639 | 4,149,639 | 1.13 | ||||||||
| Total | 340,952,394 | 21,054,035 | 4,149,639 | 366,156,068 | 100 | |||||||
| % | 93.12 | 5.75 | 1.13 | 100 |
- 20 -
NOTES TO THE CONDENSEDCONSOLIDATED INTERIM FINANCIAL STATEMENTS AS OF SEPTEMBER 30, 2021
(Translation of Financial statements originally issued in Spanish – See Note 43)
(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of September 30, 2021, unless otherwise expressly stated)
| 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 based by grade on the Bank’s internal credit rating system, PD range and period-end stage classification. The Bank’s internal credit rating systems and the evaluation and measurement approaches are explained in note 41 section “credit risk” to the consolidated financial statements as of December 31, 2020, already issued.
| 09/30/2021 | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Internal rating grade | Range PD | Stage 1 | Stage 2 | Stage 3 | Total | % | ||||||
| Performing | 75,389,665 | 5,029,998 | 80,419,663 | 99.41 | ||||||||
| High grade | 0.00% - 3.50% | 57,704,883 | 970,729 | 58,675,612 | 72.53 | |||||||
| Standard grade | 3.51% - 7.00% | 14,825,440 | 1,160,180 | 15,985,620 | 19.76 | |||||||
| Sub-standard grade | 7.01% - 33.00% | 2,859,342 | 2,899,089 | 5,758,431 | 7.12 | |||||||
| Past due but not impaired | 33.01% - 99.99% | |||||||||||
| Impaired | 100% | 477,215 | 477,215 | 0.59 | ||||||||
| Total | 75,389,665 | 5,029,998 | 477,215 | 80,896,878 | 100 | |||||||
| % | 93.19 | 6.22 | 0.59 | 100 | ||||||||
| 12/31/2020 | ||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Internal rating grade | Range PD | Stage 1 | Stage 2 | Stage 3 | Total | % | ||||||
| Performing | 93,077,420 | 3,809,633 | 96,887,053 | 95.22 | ||||||||
| High grade | 0.00% - 3.50% | 88,040,964 | 1,112 | 88,042,076 | 86.53 | |||||||
| Standard grade | 3.51% - 7.00% | 3,755,589 | 1,992,287 | 5,747,876 | 5.65 | |||||||
| Sub-standard grade | 7.01% - 33.00% | 1,280,867 | 1,816,234 | 3,097,101 | 3.04 | |||||||
| Past due but not impaired | 33.01% - 99.99% | 510,388 | 2,211,755 | 2,722,143 | 2.68 | |||||||
| Impaired | 100% | 2,140,206 | 2,140,206 | 2.10 | ||||||||
| Total | 93,587,808 | 6,021,388 | 2,140,206 | 101,749,402 | 100 | |||||||
| % | 91.98 | 5.92 | 2.10 | 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 period-end stage classification. The Bank’s internal credit rating systems and the evaluation and measurement approaches are explained in note 41 section “credit risk” to the consolidated financial statements as of December 31, 2020, already issued.
- 21 -
NOTES TO THE CONDENSEDCONSOLIDATED INTERIM FINANCIAL STATEMENTS AS OF SEPTEMBER 30, 2021
(Translation of Financial statements originally issued in Spanish – See Note 43)
(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of September 30, 2021, unless otherwise expressly stated)
| 09/30/2021 | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Internal rating grade | Range PD | Stage 1 | Stage 2 | Stage 3 | Total | % | ||||||
| Performing | 223,173,295 | 4,360,504 | 227,533,799 | 95.53 | ||||||||
| High grade | 0.00% - 3.50% | 195,085,008 | 360,305 | 195,445,313 | 82.06 | |||||||
| Standard grade | 3.51% - 7.00% | 21,470,727 | 1,198,582 | 22,669,309 | 9.52 | |||||||
| Sub-standard grade | 7.01% - 33.00% | 6,617,560 | 2,801,617 | 9,419,177 | 3.95 | |||||||
| Past due but not impaired | 33.01% - 99.99% | 3,025,341 | 4,108,546 | 7,133,887 | 3.00 | |||||||
| Impaired | 100% | 3,510,795 | 3,510,795 | 1.47 | ||||||||
| Total | 226,198,636 | 8,469,050 | 3,510,795 | 238,178,481 | 100 | |||||||
| % | 94.97 | 3.56 | 1.47 | 100 | ||||||||
| 12/31/2020 | ||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Internal rating grade | Range PD | Stage 1 | Stage 2 | Stage 3 | Total | % | ||||||
| Performing | 246,787,502 | 8,060,939 | 254,848,441 | 96.39 | ||||||||
| High grade | 0.00% - 3.50% | 190,840,204 | 47,479 | 190,887,683 | 72.19 | |||||||
| Standard grade | 3.51% - 7.00% | 39,948,963 | 546,892 | 40,495,855 | 15.32 | |||||||
| Sub-standard grade | 7.01% - 33.00% | 15,998,335 | 7,466,568 | 23,464,903 | 8.88 | |||||||
| Past due but not impaired | 33.01% - 99.99% | 577,084 | 6,971,708 | 7,548,792 | 2.85 | |||||||
| Impaired | 100% | 2,009,433 | 2,009,433 | 0.76 | ||||||||
| Total | 247,364,586 | 15,032,647 | 2,009,433 | 264,406,666 | 100 | |||||||
| % | 93.55 | 5.69 | 0.76 | 100 | ||||||||
| 7.2 | Other debt securities at amortized cost | |||||||||||
| --- | --- |
For corporate bonds bought, PD and LGD parameters calculated for loan exposures of those issuers were used. The corporate bonds’ EAD is considered equal to the debt balance.
For financial trusts at amortized cost, the criteria that was used in the calculation of ECL is based on credit risk ratings given by a credit rating agency for each types of debt securities that compose each financial trust. That is, the factor to be used will vary in relation to the holding debt securities (A or B). It is assumed that the EAD is equal to the debt balance.
The table below shows the exposures gross of impairment allowances by stages:
| 09/30/2021 | ||||||||
|---|---|---|---|---|---|---|---|---|
| Composition | Stage 1 | Stage 2 | Stage 3 | Total | % | |||
| Corporate bonds | 129,888 | 129,888 | 33.91 | |||||
| Financial trust | 253,198 | 253,198 | 66.09 | |||||
| Total | 383,086 | 383,086 | 100 | |||||
| % | 100 | 100 |
- 22 -
NOTES TO THE CONDENSEDCONSOLIDATED INTERIM FINANCIAL STATEMENTS AS OF SEPTEMBER 30, 2021
(Translation of Financial statements originally issued in Spanish – See Note 43)
(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of September 30, 2021, unless otherwise expressly stated)
| 12/31/2020 | ||||||||
|---|---|---|---|---|---|---|---|---|
| Composition | Stage 1 | Stage 2 | Stage 3 | Total | % | |||
| Corporate bonds | 500,363 | 500,363 | 68.67 | |||||
| Financial trust | 228,297 | 228,297 | 31.33 | |||||
| Total | 728,660 | 728,660 | 100 | |||||
| % | 100 | 100 |
The related ECL for corporate bonds as of September 30, 2021 and December 31, 2020 amounted to 400 and 1,690, respectively. The ECL related to financial trusts as of December 31, 2020 amounted to 149.
| 7.3 | Government securities at amortized cost or fair value through<br>OCI |
|---|
This group includes federal government securities, provincial or Central Bank instruments measured at amortized cost or fair value through OCI. For these assets, an individual assessment of the related parameters was performed. However, under domestic standards and according to Communiqué “A” 6847, no ECL was calculated for these instruments.
A detail of these investments and their characteristics are disclosed in note 8.
| 7.4. | Other financial assets |
|---|
The table below shows the exposures gross of impairment allowances by stages:
| 09/30/2021 | ||||||||
|---|---|---|---|---|---|---|---|---|
| Composition | Stage 1 | Stage 2 | Stage 3 | Total | % | |||
| Other financial assets | 21,454,418 | 21,454,418 | 100 | |||||
| Total | 21,454,418 | 21,454,418 | 100 | |||||
| % | 100 | 100 | ||||||
| 12/31/2020 | ||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Composition | Stage 1 | Stage 2 | Stage 3 | Total | % | |||
| Other financial assets | 25,892,195 | 25,892,195 | 100 | |||||
| Total | 25,892,195 | 25,892,195 | 100 | |||||
| % | 100 | 100 |
The ECL related to these types of instruments amounted to 25,396 and 25,922 as of September 30, 2021 and December 31, 2020, respectively, including the ECL related to the payments to be collected for transaction mentioned in note 9.
In exhibit R “Value adjustment for credit losses – Allowance for uncollectibility risk” are also disclosed the ECL movements by portfolio and products.
- 23 -
NOTES TO THE CONDENSEDCONSOLIDATED INTERIM FINANCIAL STATEMENTS AS OF SEPTEMBER 30, 2021
(Translation of Financial statements originally issued in Spanish – See Note 43)
(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of September 30, 2021, unless otherwise expressly stated)
| 8. | OTHER DEBT SECURITIES |
|---|
The composition of other debt securities as of September 30, 2021 and December 31, 2020 is as follows:
| Composition | 09/30/2021 | 12/31/2020 | ||
|---|---|---|---|---|
| At fair value through OCI | ||||
| Central Bank internal bills | 130,383,025 | 176,231,595 | ||
| Government securities | 112,699,945 | 61,341,551 | ||
| Government securities – Foreign | 10,169,584 | 6,219,005 | ||
| Total at fair value through OCI | 253,252,554 | 243,792,151 | ||
| At amortized cost | ||||
| Government securities | 22,195,608 | 41,891,633 | ||
| Private securities | 382,686 | 726,821 | ||
| Total at amortized cost | 22,578,294 | 42,618,454 | ||
| Total | 275,830,848 | 286,410,605 | ||
| 9. | EQUITY INSTRUMENTS AT FAIR VALUE THROUGH PROFIT OR LOSS – PRISMA MEDIOS DE PAGO SA | |||
| --- | --- |
The composition of equity instruments at fair value through profit or loss as of September 30, 2021 and December 31, 2020 is as follows:
| Composition | 09/30/2021 | 12/31/2020 | ||
|---|---|---|---|---|
| Prisma Medios de Pago SA (1) | 1,791,063 | 1,945,754 | ||
| Other | 294,432 | 331,880 | ||
| Total | 2,085,495 | 2,277,634 | ||
| (1) | On January 21, 2019, the Bank, together with the other shareholders, accepted a purchase offer made<br>by AI ZENITH (Netherlands) B.V. (a company related to Advent International Corporation) for the acquisition of 1,933,051 common shares<br>of par value Ps.1 each and entitled to one vote, representing 4.6775 % of its share capital, equivalent to 51% of the Bank’s capital<br>stock in such company. | |||
| --- | --- |
On February 1, 2019, the Bank completed the transfer of such shares for a total purchase price of (in thousands) USD 64,542 out of which the Bank received on the date hereof (in thousands) USD 38,311 and the payment of the balance for an amount of (in thousands) USD 26,231 shall be deferred for 5 years as follows: (i) 30% of such amount in Pesos adjusted by Unit of Purchasing Power (UVA, for its acronym in Spanish) at a 15% nominal annual rate; and (ii) 70% in US Dollars at a 10% nominal annual rate. The purchase price is guaranteed by the issuance of notes in favor of the Bank and pledges of the transferred shares.
During July 2019, the process to determine the final selling price of the shares of Prisma Medios de Pago SA (Prisma) was completed and the final price was (in thousands) USD 63,456. The difference arising from a final price lower than the estimated price was deducted from the price balance, therefore there was no need for the Bank to return any amounts received. All other payment conditions were not modified and remain in full force and effect under the terms described in this note.
The amounts receivable, in pesos and US dollars, are recorded in the item “Other financial assets”.
- 24 -
NOTES TO THE CONDENSEDCONSOLIDATED INTERIM FINANCIAL STATEMENTS AS OF SEPTEMBER 30, 2021
(Translation of Financial statements originally issued in Spanish – See Note 43)
(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of September 30, 2021, unless otherwise expressly stated)
The remaining holding of the Bank in Prisma (equivalent to 49%), is recorded in “Equity instruments at fair value through profit or loss” determined from valuations performed by independent experts, which was adjusted in less, according to Memorandums issued by the BCRA. As of September 30, 2021 the valuation was adjusted by Memorandums dated March 12 and 22, 2021 while, as of December 31, 2020, as required by a Memorandum dated April 29, 2019.
In addition, sellers retained the usufruct (dividends) of the shares sold to be reported by Prisma for the year ended December 31, 2018, which were collected on April 26, 2019, and have the possibility to execute a put for the non-sold shares of this transaction (49%) and the buyer has the obligation to buy them, on an specific term established on the agreement, according to specifics clauses. Besides the proportion applicable to the buyer of the dividends to be reported for the following fiscal years –with the buyer’s commitment to voting in favor of the distribution of certain minimum percentages– will be used to create a guarantee trust to repay the deferred price amount through the concession by the buyer and Prisma of a usufruct over the economic rights of the shares in favor of such trust.
On February 22, 2021 the Bank collected cash dividends for an amount of 541,144 which 275,065 were applied to decrease the receivable generated by the financing granted to AI ZENITH (Netherlands) BV, for the purchase of Prisma´s shares. In addition, on May 28, 2021, the Bank collected cash dividends for an amount of 340,940 which 171,327 were applied to decrease the receivable generated by the financing abovementioned.
On October 1st, 2021, the Bank together with the other Shareholders of Prisma, sent the relevant exercise notice for their option to sell the 49% of the capital stock and votes of Prisma to AI ZENITH (Netherlandas) BV that they still hold. The price of such shares shall be determined pursuant to the calculation proceeding contractually agreed the parties shall agree upon which, as of the date of issuance of these condensed consolidated interim financial statements, it is not completed.
| 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 an evidence of the fair value of such instrument, in order to determine such fair value, the entities may use the market value of another instrument with similar characteristics, the analysis of discounted cash flows or other applicable techniques, which shall be significantly affected by the assumptions used.
Notwithstanding the above, the Bank’s Management has used its best judgment to estimate the fair values of its financial instruments; any technique to perform such estimate implies certain inherent fragility level.
Fair value hierarchy
The Bank uses the following hierarchy to determine and disclose the fair value of financial instruments, according to the valuation technique applied:
| - | Level 1: quoted prices (unadjusted) 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 regards<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 reporting period. |
|---|
- 25 -
NOTES TO THE CONDENSEDCONSOLIDATED INTERIM FINANCIAL STATEMENTS AS OF SEPTEMBER 30, 2021
(Translation of Financial statements originally issued in Spanish – See Note 43)
(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of September 30, 2021, unless otherwise expressly stated)
| - | 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 which 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<br> determination of the fair value recognized or disclosed<br>are not based on observable market information. |
| --- | --- |
The following tables show the hierarchy in the Bank’s financial asset and liability at fair value measurement, as of September 30, 2021 and December 31, 2020:
| Financial assets and financial liabilities measured at fair value<br><br> on a recurring basis as of September 30, 2021 | ||||||||
|---|---|---|---|---|---|---|---|---|
| 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 | 21,242,285 | 20,393,651 | 1,049 | 847,585 | ||||
| Derivatives financial instruments | 935 | 935 | ||||||
| Other financial assets | 838,580 | 805,302 | 33,278 | |||||
| Equity instruments at fair value through profit or loss | 2,085,495 | 12,870 | 2,072,625 | |||||
| At fair value through OCI | ||||||||
| Other debt Securities | 253,252,554 | 197,855,105 | 55,397,449 | |||||
| Financial assets delivered as guarantee | 2,023,180 | 2,023,180 | ||||||
| Total | 279,443,029 | 221,091,043 | 55,398,498 | 2,953,488 | ||||
| Financial liabilities | ||||||||
| At fair value through profit or loss | ||||||||
| Liabilities at fair value through profit or loss | 2,220,152 | 2,220,152 | ||||||
| Derivatives financial instruments | 2,440 | 1,095 | 1,345 | |||||
| Total | 2,222,592 | 2,221,247 | 1,345 |
- 26 -
NOTES TO THE CONDENSEDCONSOLIDATED INTERIM FINANCIAL STATEMENTS AS OF SEPTEMBER 30, 2021
(Translation of Financial statements originally issued in Spanish – See Note 43)
(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of September 30, 2021, unless otherwise expressly stated)
| Financial assets and financial liabilities measured at fair value <br><br>on a recurring basis as of December 31, 2020 | ||||||||
|---|---|---|---|---|---|---|---|---|
| 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 | 75,302,845 | 74,784,526 | 9 | 518,310 | ||||
| Derivatives financial instruments | 9,905 | 9,905 | ||||||
| Other financial assets | 829,201 | 793,347 | 35,854 | |||||
| Equity instruments at fair value through profit or loss | 2,277,634 | 13,498 | 2,264,136 | |||||
| At fair value through OCI | ||||||||
| Other debt Securities | 243,792,151 | 158,073,389 | 85,718,762 | |||||
| Financial assets delivered as guarantee | 952,882 | 952,882 | ||||||
| Total | 323,164,618 | 234,617,642 | 85,728,676 | 2,818,300 | ||||
| Financial liabilities | ||||||||
| At fair value through profit or loss | ||||||||
| Derivatives financial instruments | 315 | 315 | ||||||
| Total | 315 | 315 |
Description of valuation process
The fair value of instruments categorized as Level 1 was assessed by using quoted prices effective at the end of each period or fiscal year, as applicable, in active markets for identical assets or liabilities, if representative. Currently, for most of the government and private securities, there are two principal markets in which the Bank operates: BYMA and MAE. Additionally, in the case of derivatives, both MAE and Mercadoa 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 September 30, 2021 and December 31, 2020, the Bank has neither changed the techniques nor the assumptions used to estimate the fair value of the financial instruments.
- 27 -
NOTES TO THE CONDENSEDCONSOLIDATED INTERIM FINANCIAL STATEMENTS AS OF SEPTEMBER 30, 2021
(Translation of Financial statements originally issued in Spanish – See Note 43)
(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of September 30, 2021, unless otherwise expressly stated)
Below is the reconciliation between the amounts at the beginning and at the end of the period, of the financial assets recognized at fair value categorized as level 3:
| As of September 30, 2021 | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| Description | Debt instruments | Other financial<br><br> assets | Equity investment at<br><br> fair value through<br><br> profit or loss | ||||||
| Amount at the beginning | 518,310 | 35,854 | 2,264,136 | ||||||
| Transfers to Level 3 | |||||||||
| Transfers for Level 3 | |||||||||
| Profit and loss | 209,226 | 2,816 | 526,121 | ||||||
| Recognition and derecognition | 306,382 | 5,555 | (19,004 | ) | |||||
| Monetary effects | (186,333 | ) | (10,947 | ) | (698,628 | ) | |||
| Amount at the end of the period | 847,585 | 33,278 | 2,072,625 | ||||||
| As of December 31, 2020 | |||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Description | Debt instruments | Other financial<br><br> assets | Equity investment at<br><br> fair value through<br><br> profit or loss | ||||||
| Amount at the beginning | 1,519,721 | 42,887 | 2,846,788 | ||||||
| Transfers to Level 3 | |||||||||
| Transfers for Level 3 | |||||||||
| Profit and loss | 284,587 | 12,972 | 183,074 | ||||||
| Recognition and derecognition | (1,084,097 | ) | (8,910 | ) | 23,435 | ||||
| Monetary effects | (201,901 | ) | (11,095 | ) | (789,161 | ) | |||
| Amount at the end of the fiscal year | 518,310 | 35,854 | 2,264,136 |
Quantitative information about Level 3 fair value measurements
The following table provides quantitative information about the valuation techniques and significant unobservable inputs used in the valuation of substantially all of Level 3 principal assets measured at fair value on a recurring basis for which the Bank uses an internal model (with the exception of the Bank’s holding in Prisma for the reasons described in note 9).
| Fair value<br> of<br><br> Level 3 Assets | Valuation | Significant <br><br>unobservable | Range of inputs<br><br>09/30/2021<br><br>Range of inputs | |||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Description | 09/30/2021 | technique | inputs | Low | High | Unit | **** | |||
| Debt Securities of Financial Trusts Provisional | 61,145 | Income approach (discounted cash flow) | Discount rate in pesos | 34.81 | 59.19 | % | ||||
| Corporate bonds | 783,647 | Income approach (discounted cash flow) | Discount rate in pesos | 30.26 | 54.15 | % |
- 28 -
NOTES TO THE CONDENSEDCONSOLIDATED INTERIM FINANCIAL STATEMENTS AS OF SEPTEMBER 30, 2021
(Translation of Financial statements originally issued in Spanish – See Note 43)
(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of September 30, 2021, unless otherwise expressly stated)
| Fair value<br> of<br><br> Level 3 Assets | Valuation | Significant <br><br>unobservable | Range of inputs<br><br>12/31/2020<br><br>Range of inputs | |||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Description | 12/31/2020 | technique | inputs | Low | High | Unit | **** | |||
| Debt Securities of Financial Trusts Provisional | 515,084 | Income approach (discounted cash flow) | Discount rate in pesos | 43.84 | 47.60 | % |
The table below describes the effect of changing the significant unobservable inputs to reasonable possible alternatives. Sensitivity data were calculated using a number of techniques including analyzing price dispersion of different price sources, adjusting model inputs to analyze changes within the fair value methodology.
| 09/30/2021 | 12/31/2020 | ||||||||
|---|---|---|---|---|---|---|---|---|---|
| Favorable changes | Unfavorable changes | **** | Favorable changes | Unfavorable changes | **** | ||||
| Debt Securities of Financial Trusts Provisional | 340 | (308 | ) | 616 | (602 | ) | |||
| Corporate bonds | 37,440 | (32,733 | ) |
Changes in fair value levels
The Bank monitors the availability of information in the market to evaluate the classification of financial instruments into the fair value hierarchy as well as the resulting determination of transfers between levels 1, 2 and 3 at each period end.
As of September 30, 2021 and December 31, 2020, the Bank has not recognized any transfers between levels 1, 2 and 3.
Financial assets and liabilities not recognized at fair value
Next follows a description of the main methods and assumptions used to determine the fair values of financial instruments not recognized at their fair value in these condensed consolidated interim financial statements:
| - | Instruments with fair value similar to the carrying amount: financial assets and liabilities that are<br>liquid or have short-term maturities (less than three months) were deemed to have a fair value similar to the carrying amount. |
|---|---|
| - | Fixed and variable rate of financial instruments: the fair value of financial assets was recognized discounting<br>future cash flows at current market rates for each period or fiscal year, as applicable, for financial instruments of similar characteristics.<br>The estimated fair value of fixed-interest rate deposits and liabilities was assessed discounting future cash flows by using estimated<br>interest rates for deposits or placings with similar maturities to those of the Bank’s portfolio. |
| --- | --- |
| - | For public listed assets and liabilities, or those for which the prices are reported by certain renown<br>pricing providers, the fair value was determined based on such prices. |
| --- | --- |
- 29 -
NOTES TO THE CONDENSEDCONSOLIDATED INTERIM FINANCIAL STATEMENTS
AS OF SEPTEMBER 30, 2021
(Translation of Financial statements originally issued in Spanish – See Note 43)
(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of September 30,
2021, unless otherwise expressly stated)
The following table shows a comparison between the fair value and the carrying amount of financial instruments not measured at fair value as of September 30, 2021 and December 31, 2020:
| 09/30/2021 | |||||
|---|---|---|---|---|---|
| Composition | Carrying amount | Level 1 | Level 2 | Level 3 | Fair value |
| Financial assets | |||||
| Cash and deposits in banks | 166,007,954 | 166,007,954 | 166,007,954 | ||
| Repo transactions | 22,431,396 | 22,431,396 | 22,431,396 | ||
| Other financial assets | 20,590,442 | 20,590,442 | 20,590,442 | ||
| Loans and other financing | 309,921,930 | 284,020,007 | 284,020,007 | ||
| Other debt securities | 22,578,294 | 329,287 | 21,278,232 | 805,442 | 22,412,961 |
| Financial assets delivered as guarantee | 16,828,529 | 16,828,529 | 16,828,529 | ||
| Total | 558,358,545 | 226,187,608 | 21,278,232 | 284,825,449 | 532,291,289 |
| Financial liabilities | |||||
| --- | --- | --- | --- | --- | --- |
| Deposits | 542,154,341 | 284,966,470 | 257,036,750 | 542,003,220 | |
| Repo transactions | 1,810,254 | 1,810,254 | 1,810,254 | ||
| Other financial liabilities | 46,608,632 | 45,045,996 | 1,549,124 | 46,595,120 | |
| Financing received from the BCRA and other financial entities | 595,242 | 431,518 | 159,376 | 590,894 | |
| Issued corporate bonds | 2,538,119 | 2,147,630 | 2,147,630 | ||
| Subordinated corporate bonds | 41,039,615 | 34,165,469 | 34,165,469 | ||
| Total | 634,746,203 | 332,254,238 | 38,021,599 | 257,036,750 | 627,312,587 |
| 12/31/2020 | |||||
| --- | --- | --- | --- | --- | --- |
| Composition | Carrying amount | Level 1 | Level 2 | Level 3 | Fair value |
| Financial assets | |||||
| Cash and deposits in banks | 178,000,766 | 178,000,766 | 178,000,766 | ||
| Repo transactions | 53,991,148 | 53,991,148 | 53,991,148 | ||
| Other financial assets | 25,037,072 | 25,037,072 | 25,037,072 | ||
| Loans and other financing | 352,429,316 | 328,643,322 | 328,643,322 | ||
| Other debt securities | 42,618,454 | 14,462,436 | 30,418,777 | 203,146 | 45,084,359 |
| Financial assets delivered as guarantee | 18,621,637 | 18,621,637 | 18,621,637 | ||
| Total | 670,698,393 | 290,113,059 | 30,418,777 | 328,846,468 | 649,378,304 |
| Financial liabilities | |||||
| --- | --- | --- | --- | --- | --- |
| Deposits | 669,370,029 | 332,893,699 | 336,095,422 | 668,989,121 | |
| Repo transactions | 847,183 | 847,183 | 847,183 | ||
| Other financial liabilities | 67,405,059 | 65,574,274 | 1,823,319 | 67,397,593 | |
| Financing received from the BCRA and other financial entities | 1,258,785 | 443,568 | 802,084 | 1,245,652 | |
| Issued corporate bonds | 6,747,782 | 5,643,759 | 5,643,759 | ||
| Subordinated corporate bonds | 46,976,966 | 39,859,873 | 39,859,873 | ||
| Total | 792,605,804 | 399,758,724 | 48,129,035 | 336,095,422 | 783,983,181 |
- 30 -
NOTES TO THE CONDENSEDCONSOLIDATED INTERIM FINANCIAL STATEMENTS
AS OF SEPTEMBER 30, 2021
(Translation of Financial statements originally issued in Spanish – See Note 43)
(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of September 30,
2021, unless otherwise expressly stated)
| 11. | INVESTMENT IN ASSOCIATES AND JOINT ARRANGEMENTS |
|---|
11.1 Associates entities
| a) | Macro Warrants SA |
|---|
The Bank holds an investment in the associate Macro Warrants SA. The existence of significant influence is evidenced by the representation the Bank has in the Board of Directors of the associate. In order to measure this investment, the Bank used accounting information of Macro Warrants SA as of June 30, 2021. Additionally, the Bank has considered, when applicable, the material transactions or events occurring between July 1, 2021 and September 30, 2021.
The following table presents the summarized financial information on the Bank’s investment in the associate:
| Summarized statement of financial position | 09/30/2021 | 12/31/2020 | ||||
|---|---|---|---|---|---|---|
| Total assets | 76,723 | 80,737 | ||||
| Total liabilities | 6,119 | 16,634 | ||||
| Shareholders’ equity | 70,604 | 64,103 | ||||
| Proportional Bank’s interest | 5 | % | 5 | % | ||
| Investment carrying amount | 3,530 | 3,205 |
As of September 30, 2021 and 2020, the investment carrying amount in the net income of the periods amounted to 325 y (1,830), respectively.
| b) | Play Digital SA |
|---|
As explain in note 1, the Bank holds an investment in the associate Play Digital SA. The existence of significant influence is evidenced by the representation the Bank has in the Board of Directors of the associate.
The following table presents the summarized financial information on the Bank’s interest in the associate:
| Summarized statement of financial position | 09/30/2021 | 12/31/2020 | ||||
|---|---|---|---|---|---|---|
| Total assets | 1,745,352 | 903,739 | ||||
| Total liabilities | 182,999 | 120,001 | ||||
| Shareholders’ equity | 1,562,353 | 783,738 | ||||
| Proportional Bank’s interest | 10.020 | % | 9.9545 | % | ||
| Investment carrying amount | 156,543 | 78,017 |
As of September 30, 2021, the investment carrying amount in the net income of the period amounted to 67,050 (loss).
11.2 Joint ventures
The Bank participates in the following joint ventures, implemented through Uniones Transitorias de Empresas (UTE, for its acronym in Spanish):
| a) | Banco Macro SA – Wordline Argentina SA Unión transitoria: on April 7, 1998, the Bank<br>executed an agreement with Siemens Itron Services SA to organize an UTE controlled on a joint basis through a 50% interest, the purpose<br>of which is to facilitate a data processing center for the tax administration, to modernize the systems and tax collection processes of<br>the Province of Salta and manage and recover municipal taxes and fees. |
|---|
- 31 -
NOTES TO THE CONDENSEDCONSOLIDATED INTERIM FINANCIAL STATEMENTS
AS OF SEPTEMBER 30, 2021
(Translation of Financial statements originally issued in Spanish – See Note 43)
(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of September 30,
2021, unless otherwise expressly stated)
The following table presents the summarized financial information on the Bank’s investment in the UTE:
| Summarized statement of financial position | 09/30/2021 | 12/31/2020 | ||||
|---|---|---|---|---|---|---|
| Total assets | 596,501 | 530,748 | ||||
| Total liabilities | 130,362 | 134,762 | ||||
| Shareholders’ equity | 466,139 | 395,986 | ||||
| Proportional Bank’s interest | 50 | % | 50 | % | ||
| Investment carrying amount | 233,070 | 197,993 |
As of September 30, 2021 and 2020, the investment carrying amount in the net income of the periods amounted to 114,228 and 75,941, respectively.
| b) | Banco Macro SA – Gestiva SA Unión transitoria: on May 4, 2010 and August 15, 2012,<br>the Bank executed with Gestiva SA the UTE agreement to form “Banco Macro SA – Gestiva SA – Unión Transitoria<br>de Empresas”, under joint control, the purpose of which is to render the integral processing and management services of the tax<br>system of the Province of Misiones, the management thereof and tax collection services. The Bank holds a 5% interest in this UTE. |
|---|
On April 5, 2018, the Bank, the UTE and the tax authorities of the Misiones provincial government entered into an agreement of “termination by mutual agreement” of the adaptation agreement, without implying or modifying the Bank’s rights and obligations as a financial agent of the province for the services provision established in the agreement. On May 31, 2021 and due to abovementioned agreement, this UTE was derecognized. As of December 31, 2020, according to the above-mentioned, the remaining investment amounted to 49.
| 12. | OTHER NON-FINANCIAL ASSETS |
|---|
The composition of the other non-financial assets as of September 30, 2021 and December 31, 2020 is as follows:
| Composition | 09/30/2021 | 12/31/2020 |
|---|---|---|
| Advanced prepayments | 1,084,711 | 638,503 |
| Investment property (see Exhibit F) | 788,310 | 1,342,429 |
| Tax advances | 146,592 | 827,576 |
| Other | 185,923 | 248,465 |
| Total | 2,205,536 | 3,056,973 |
| 13. | RELATED PARTIES | |
| --- | --- |
A related party is a person or entity that is related to the Bank:
| - | has control or joint control of the Bank; |
|---|---|
| - | has significant influence over the Bank; |
| --- | --- |
| - | is a member of the key management personnel of the Bank or of the parent of the Bank; |
| --- | --- |
| - | members of the same group; |
| --- | --- |
| - | one entity is an associate (or an associate of a member of a group of which the other entity is 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.
- 32 -
NOTES TO THE CONDENSEDCONSOLIDATED INTERIM FINANCIAL STATEMENTS
AS OF SEPTEMBER 30, 2021
(Translation of Financial statements originally issued in Spanish – See Note 43)
(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of September 30,
2021, unless otherwise expressly stated)
As of September 30, 2021 and December 31, 2020, amounts balances related to transactions generated with related parties are as follows:
| As of September 30, 2021 | ||||||||
|---|---|---|---|---|---|---|---|---|
| Main subsidiaries (1) | ||||||||
| MacroBankLimited | MacroSecuritiesSA | MacroFondosSGFCISA | ArgenpaySAU | Associates | Keymanagementpersonnel (2) | Otherrelatedparties | Total | |
| Assets | ||||||||
| Cash and deposit in banks | 791 | 791 | ||||||
| Other financial assets | 71,477 | 104,891 | 129,807 | 306,175 | ||||
| Loans and other financing (3) | ||||||||
| Documents | 26,422 | 26,422 | ||||||
| Overdraft | 93,731 | 784,441 | 878,172 | |||||
| Credit Cards | 58,017 | 30,034 | 88,051 | |||||
| Lease | 12,620 | 12,620 | ||||||
| Personal loans | 1,478 | 1,478 | ||||||
| Mortgage loans | 235,113 | 235,113 | ||||||
| Other loans | 650,915 | 8,471 | 1,012,979 | 1,672,365 | ||||
| Other receivables for financial intermediation | 6,405 | 6,405 | ||||||
| Guarantee granted | 852,144 | 852,144 | ||||||
| Total assets | 791 | 722,392 | 501,701 | 2,854,852 | 4,079,736 | |||
| Liabilities | ||||||||
| Deposits | 5 | 3,235,209 | 157,137 | 46,602 | 44,952 | 9,970,197 | 1,175,360 | 14,629,462 |
| Liabilities at fair value through profit or loss | 2,117,051 | 2,117,051 | ||||||
| Other financial liabilities | 2,120,049 | 880,640 | 23,222 | 3,023,911 | ||||
| Issued corporate bonds | 598,544 | 598,544 | ||||||
| Other non-financial liabilities | 13,057 | 13,057 | ||||||
| Total liabilities | 5 | 5,953,802 | 157,137 | 46,602 | 44,952 | 10,850,837 | 3,328,690 | 20,382,025 |
| (1) | These transactions are eliminated during the consolidation process. | |||||||
| --- | --- | |||||||
| (2) | Includes close family members of the key management personnel. | |||||||
| --- | --- | |||||||
| (3) | The maximum financing amount for loans and other financing as of September 30, 2021 for Macro Securities<br>SA, Key management personnel and other related parties amounted to 971,842, 515,882 and 4,980,774, respectively. | |||||||
| --- | --- |
- 33 -
NOTES TO THE CONDENSEDCONSOLIDATED INTERIM FINANCIAL STATEMENTS
AS OF SEPTEMBER 30, 2021
(Translation of Financial statements originally issued in Spanish – See Note 43)
(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of September 30,
2021, unless otherwise expressly stated)
| As of December 31, 2020 | ||||||||
|---|---|---|---|---|---|---|---|---|
| Main subsidiaries (1) | ||||||||
| MacroBankLimited | MacroSecuritiesSA | MacroFondosSGFCISA | ArgenpaySAU | Associates | Keymanagementpersonnel (2) | Otherrelatedparties | Total | |
| Assets | ||||||||
| Cash and deposit in banks | 923 | 923 | ||||||
| Repo transaction | 1,050,996 | 1,050,996 | ||||||
| Other financial assets | 203 | 203 | ||||||
| Loans and other financing (3) | ||||||||
| Documents | 2,093 | 2,093 | ||||||
| Overdraft | 44,859 | 556,622 | 601,481 | |||||
| Credit Cards | 62,067 | 15,069 | 77,136 | |||||
| Lease | 1,416 | 7,153 | 8,569 | |||||
| Personal loans | 15,957 | 15,957 | ||||||
| Mortgage loans | 115,282 | 115,282 | ||||||
| Other loans | 974,835 | 521,110 | 1,495,945 | |||||
| Guarantee granted | 1,139,080 | 1,139,080 | ||||||
| Total assets | 923 | 2,027,247 | 238,165 | 2,241,330 | 4,507,665 | |||
| As of December 31, 2020 | ||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Main subsidiaries (1) | ||||||||
| Macro Bank Limited | Macro Securities SA | Macro Fondos SGFCISA | Argenpay SAU | Associates | Key management personnel (2) | Other related parties | Total | |
| Liabilities | ||||||||
| Deposits | 10 | 919,563 | 178,886 | 78,033 | 59,356 | 850,035 | 5,173,221 | 7,259,104 |
| Other financial liabilities | 21,386 | 16,164,230 | 15,857 | 16,201,473 | ||||
| Other non-financial liabilities | 15,645 | 15,645 | ||||||
| Total liabilities | 10 | 940,949 | 178,886 | 78,033 | 59,356 | 17,014,265 | 5,204,723 | 23,476,222 |
| (1) | These transactions are eliminated during the consolidation process. | |||||||
| --- | --- | |||||||
| (2) | Includes close family members of the key management personnel. | |||||||
| --- | --- | |||||||
| (3) | The maximum financing amount for loans and other financing as of December 31, 2020 for Macro Securities<br>SA, Key management personnel and other related parties amounted to 979,231, 1,365,944 and 6,400,520, respectively. | |||||||
| --- | --- |
Profit or loss related to transactions generated during the nine-month periods ended September 30, 2021 and 2020 with related parties are as follows:
- 34 -
NOTES TO THE CONDENSEDCONSOLIDATED INTERIM FINANCIAL STATEMENTSAS OF SEPTEMBER 30, 2021
(Translation of Financial statements originally issued in Spanish – See Note 43)
(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of September 30,
2021, unless otherwise expressly stated)
| As of September 30, 2021 | ||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Main subsidiaries (1) | ||||||||||||||||||||
| Macro<br><br> Bank<br><br> Limited | Macro Securities SA | Macro<br><br> Fondos<br><br> SGFCISA | Argenpay<br><br> SAU | Associates | Key management personnel (2) | Other related parties | Total | |||||||||||||
| Income / (loss) | ||||||||||||||||||||
| Interest income | 2,517 | 106,626 | 945,755 | 1,054,898 | ||||||||||||||||
| Interest expense | (3,822 | ) | (13,011 | ) | (30,671 | ) | (57,018 | ) | (104,522) | |||||||||||
| Commissions income | 13,743 | 83 | 139 | 14 | 14,001 | 27,980 | ||||||||||||||
| Commissions expense | (21 | ) | (159 | ) | (180) | |||||||||||||||
| Other operating income | 2 | 6,478 | 22 | 6,502 | ||||||||||||||||
| Administrative expense | (171,200 | ) | (171,200) | |||||||||||||||||
| Other operating expense | (52,542 | ) | (52,542) | |||||||||||||||||
| Income / (loss) | 2 | 18,916 | 83 | (12,872 | ) | 75,948 | 678,859 | 760,936 | ||||||||||||
| (1) | These transactions are eliminated during the consolidation process. | |||||||||||||||||||
| --- | --- | |||||||||||||||||||
| (2) | Includes close family members of the key management personnel. | |||||||||||||||||||
| --- | --- | |||||||||||||||||||
| As of September 30, 2020 | ||||||||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Main subsidiaries (1) | ||||||||||||||||||||
| Macro Bank Limited | Macro Securities SA | Macro Fondos SGFCISA | Argenpay SAU | Associates | Key management personnel (2) | Other related parties | Total | |||||||||||||
| Income / (loss) | ||||||||||||||||||||
| Interest income | 3,505 | 75,982 | 698,615 | 778,102 | ||||||||||||||||
| Interest expense | (7,877 | ) | (2,157,309 | ) | (55,475 | ) | (2,220,661 | ) | ||||||||||||
| Commissions income | 9,860 | 311 | 84 | 58 | 39,932 | 50,245 | ||||||||||||||
| Commissions expense | (186 | ) | (322 | ) | (508 | ) | ||||||||||||||
| Income from measurement of financial instruments at fair value through profit or loss | 5,689 | 5,689 | ||||||||||||||||||
| Other operating income | 5 | 2 | 26 | 33 | ||||||||||||||||
| Allowance for loan losses | (12,219 | ) | (12,219 | ) | ||||||||||||||||
| Administrative expense | (165,244 | ) | (165,244 | ) | ||||||||||||||||
| Other operating expense | (89,629 | ) | (89,629 | ) | ||||||||||||||||
| Income / (loss) | 5 | 1,146 | 311 | 2 | (7,793 | ) | (2,081,455 | ) | 433,592 | (1,654,192 | ) | |||||||||
| (1) | These transactions are eliminated during the consolidation process. | |||||||||||||||||||
| --- | --- | |||||||||||||||||||
| (2) | Includes close family members of the key management personnel. | |||||||||||||||||||
| --- | --- |
Transactions generated by the Bank with its related parties for transactions arranged within the course of the usual and ordinary course of business were performed in normal market conditions, both as to interest rates and prices and as to the required guarantees.
The Bank does not have loans granted to directors and other key management personnel secured with shares.
Total remunerations received as salary and bonus by the key management personnel as of September 30, 2021 and 2020, totaled 410,414 and 318,267, respectively.
In addition, fees received by the Directors as of September 30, 2021 and 2020 amounted to 926,461 and 1,963,394, respectively.
- 35 -
NOTES TO THE CONDENSEDCONSOLIDATED INTERIM FINANCIAL STATEMENTSAS OF SEPTEMBER 30, 2021
(Translation of Financial statements originally issued in Spanish – See Note 43)
(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of September 30,
2021, unless otherwise expressly stated)
Additionally, the composition of the Board of Directors and key management personnel of the Bank and its subsidiaries is as follows:
| Composition | 09/30/2021 | 12/31/2020 | ||
|---|---|---|---|---|
| Board of Directors | 21 | 22 | ||
| Senior managers of the key management personnel | 12 | 11 | ||
| Total | 33 | 33 | ||
| 14. | OTHER FINANCIAL LIABILITIES | |||
| --- | --- |
The composition of the other financial liabilities as of September 30, 2021 and December 31, 2020 is as follows:
| Composition | 09/30/2021 | 12/31/2020 | ||
|---|---|---|---|---|
| Credit and debit card settlement - due to merchants | 23,504,884 | 23,561,639 | ||
| Amounts payable for spot purchases of foreign currency pending settlement | 7,935,607 | 11,572,905 | ||
| Amounts payable for other spot purchases pending settlement | 5,845,216 | 21,237,800 | ||
| Payment orders pending settlement foreign exchange | 3,193,427 | 4,208,861 | ||
| Collections and other transactions on account and behalf others | 1,933,973 | 1,935,961 | ||
| Finance leases liabilities | 1,419,105 | 1,609,978 | ||
| Amounts payable for spot purchases of government securities pending settlement | 39,989 | 575,978 | ||
| Other | 2,736,431 | 2,701,937 | ||
| Total | 46,608,632 | 67,405,059 | ||
| 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 September 30, 2021 and December 31, 2020.
The expected terms to settle these obligations are as follows:
| 09/30/2021 | ||||||||
|---|---|---|---|---|---|---|---|---|
| Composition | Within 12 months | Beyond 12 Months | 09/30/2021 | 12/31/2020 | ||||
| For administrative, disciplinary and criminal penalties | 500 | 500 | 984 | |||||
| Letters of credits, guarantees and other Commitments (1) | 279,950 | 279,950 | 23,566 | |||||
| Commercial claims in progress (2) | 25,613 | 221,509 | 247,122 | 943,801 | ||||
| Labor lawsuits | 115,112 | 119,696 | 234,808 | 311,923 | ||||
| Pension funds - reimbursement | 40,902 | 63,950 | 104,852 | 121,688 | ||||
| Other | 11,607 | 491,614 | 503,221 | 384,687 | ||||
| Total | 473,184 | 897,269 | 1,370,453 | 1,786,649 | ||||
| (1) | These amounts correspond to the ECL calculated for contingent transactions which are mentioned in note<br>4. | |||||||
| --- | --- | |||||||
| (2) | See also note 37.2. | |||||||
| --- | --- |
- 36 -
NOTES TO THE CONDENSEDCONSOLIDATED INTERIM FINANCIAL STATEMENTSAS OF SEPTEMBER 30, 2021
(Translation of Financial statements originally issued in Spanish – See Note 43)
(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of September 30,
2021, unless otherwise expressly stated)
In the opinion of the Management of the Bank and its legal counsel, there are no other significant effects than those disclosed in these condensed consolidated interim financial statements, the amounts and settlement terms of which have been recognized based on the current value of such estimates, considering the probable settlement date thereof.
| 16. | OTHER NON-FINANCIAL LIABILITIES |
|---|
The composition of other non-financial liabilities as of September 30, 2021 and December 31, 2020 is as follows:
| Composition | 09/30/2021 | 12/31/2020 | ||
|---|---|---|---|---|
| Dividends payables (see note 28) | 26,580,415 | 22,707,610 | ||
| Salaries, bonuses and payroll taxes payables | 7,213,731 | 6,724,330 | ||
| Withholdings | 5,126,191 | 5,665,250 | ||
| Taxes payables | 2,706,531 | 2,449,340 | ||
| Miscellaneous payables | 1,069,778 | 1,954,058 | ||
| Retirement pension payment orders pending settlement | 368,222 | 560,889 | ||
| Fees payables | 35,901 | 689,788 | ||
| Other | 586,932 | 825,004 | ||
| Total | 43,687,701 | 41,576,269 | ||
| 17. | ANALYSIS OF FINANCIAL ASSETS TO BE RECOVERED AND FINANCIALLIABILITIES TO BE SETTLED | |||
| --- | --- |
The following tables show the analysis of financial assets and liabilities the Bank expects to recover and settle as of September 30, 2021 and December 31, 2020:
| 09/30/2021 | Without due<br><br> date | Total up to 12<br><br> months | Total over 12<br><br> months | |||
|---|---|---|---|---|---|---|
| Assets | ||||||
| Cash and deposits in banks | 166,007,954 | |||||
| Debt securities at fair value through profit or loss | 16,374,677 | 4,867,608 | ||||
| Derivative financial instruments | 935 | |||||
| Repo transactions | 22,431,396 | |||||
| Other financial assets | 2,477,260 | 14,303,687 | 4,648,075 | |||
| Loans and other financing (1) | 61,842 | 203,416,519 | 106,443,569 | |||
| Other debt securities | 267,779,949 | 8,050,899 | ||||
| Financial assets delivered as guarantee | 16,828,529 | 2,023,180 | ||||
| Equity instruments at fair value through profit or loss | 2,085,495 | |||||
| Total assets | 187,461,080 | 526,330,343 | 124,010,151 |
- 37 -
NOTES TO THE CONDENSEDCONSOLIDATED INTERIM FINANCIAL STATEMENTSAS OF SEPTEMBER 30, 2021
(Translation of Financial statements originally issued in Spanish – See Note 43)
(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of September 30,
2021, unless otherwise expressly stated)
| 09/30/2021 | Without due<br><br> date | Total up to 12<br><br> months | Total over 12<br><br> months | |||
|---|---|---|---|---|---|---|
| Liabilities | ||||||
| Deposits | 279,587,598 | 262,556,602 | 10,141 | |||
| Financial liabilities at fair value through profit or loss | 2,220,152 | |||||
| Derivative financial instruments | 2,440 | |||||
| Repo transactions | 1,810,254 | |||||
| Other financial liabilities | 45,713,788 | 894,844 | ||||
| Financing received from the BCRA and other financial institutions | 587,079 | 8,163 | ||||
| Issued corporate bonds | 2,538,119 | |||||
| Subordinated corporate bonds | 1,545,615 | 39,494,000 | ||||
| Total liabilities | 279,587,598 | 316,974,049 | 40,407,148 | |||
| 12/31/2020 | Without due<br><br> date | Total up to 12 <br><br>months | Total over 12 <br><br>months | |||
| --- | --- | --- | --- | --- | --- | --- |
| Assets | ||||||
| Cash and deposits in banks | 178,000,766 | |||||
| Debt securities at fair value through profit or loss | 71,939,330 | 3,363,515 | ||||
| Derivative financial instruments | 9,905 | |||||
| Repo transactions | 53,991,148 | |||||
| Other financial assets | 2,781,128 | 17,352,449 | 5,732,696 | |||
| Loans and other financing (1) | 857,284 | 243,895,665 | 107,676,367 | |||
| Other debt securities | 255,038,500 | 31,372,105 | ||||
| Financial assets delivered as guarantee | 18,621,637 | 952,882 | ||||
| Equity instruments at fair value through profit or loss | 2,277,634 | |||||
| Total assets | 202,538,449 | 643,179,879 | 148,144,683 | |||
| Liabilities | ||||||
| --- | --- | --- | --- | |||
| Deposits | 326,482,574 | 342,858,119 | 29,336 | |||
| Derivative financial instruments | 315 | |||||
| Repo transactions | 847,183 | |||||
| Other financial liabilities | 66,341,170 | 1,063,889 | ||||
| Financing received from the BCRA and other financial institutions | 1,205,958 | 52,827 | ||||
| Issued corporate bonds | 3,491,339 | 3,256,443 | ||||
| Subordinated corporate bonds | 879,668 | 46,097,298 | ||||
| Total liabilities | 326,482,574 | 415,623,752 | 50,499,793 | |||
| (1) | The amounts included in “without due date”, are related to the non-performing portfolio. | |||||
| --- | --- |
- 38 -
NOTES TO THE CONDENSEDCONSOLIDATED INTERIM FINANCIAL STATEMENTSAS OF SEPTEMBER 30, 2021
(Translation of Financial statements originally issued in Spanish – See Note 43)
(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of September 30,
2021, unless otherwise expressly stated)
| 18. | DISCLOSURES BY OPERATING SEGMENT |
|---|
For management purposes the Bank’s Management has determined that it has only one operating segment related to the banking business. In this sense, the Bank supervises the operating segment income (loss) for the period in order to make decisions about resources to be allocated to the segment and assess its performance, which is measured on a consistent basis with the profit or loss in the financial statements.
| 19. | INCOME TAX |
|---|---|
| a) | Inflation adjustment on income tax |
| --- | --- |
Tax Reform Law 27430, amended by Laws 27468 and 27541, established the following, regarding to inflation adjustment on income tax for the fiscal years beginning on January 1, 2018.
| i) | Such adjustment will be applicable in the fiscal year in which the variation of the IPC will be higher<br>than 100% for the thirty-six months before the end of the tax period. |
|---|---|
| ii) | Regarding to the first, second and third fiscal year after its effective date, this procedure will be<br>applicable if the variation of the abovementioned index, calculated from the beginning until the end of each of those fiscal years exceeds<br>55%, 30% and 15% for the first, second and third fiscal year of application, respectively. |
| --- | --- |
| iii) | The positive or negative inflation adjustment, as the case may be, corresponding to the first, second<br>and third fiscal years beginning on January 1, 2018, shall be allocated one third in the fiscal year for which the adjustment is<br>calculated and the remaining two thirds in equal parts in the following two immediate fiscal years. |
| --- | --- |
| iv) | The positive or negative inflation adjustment, corresponding to the first and second fiscal years beginning<br>on January 1, 2019, shall be allocated one sixth to the fiscal year in which the adjustment is determined and the remaining five<br>sixth in the following immediate fiscal years. |
| --- | --- |
| v) | For fiscal years beginning on January 1, 2021, 100% of the adjustment may be deducted in the year<br>in which it will be determined. |
| --- | --- |
As of September 30, 2021 and December 31, 2020, all the conditions established by the income tax Law to practice the inflation adjustment are met and the current and deferred income tax was recognized, including the effects of the application of the inflation adjustment on income taxes established by Law (see the last paragraphs of this note).
| b) | Income tax rate |
|---|
The Law No. 27541 suspended, up to fiscal years beginning on January 1, 2021 included, the income tax rate reduction that had established the Law 27430, setting up for the suspended period a rate of 30%. On June 16, 2021, through Decree 387/2021, the Law 27630 was issued. This law established for fiscal years beginning on January 1, 2021 included, a progressive tax rates scheme of 25%, 30% and 35% which will be applied, on a progressively basis, to the taxable accumulated net profit at the end of each the fiscal year.
- 39 -
NOTES TO THE CONDENSEDCONSOLIDATED INTERIM FINANCIAL STATEMENTS AS OF SEPTEMBER 30, 2021
(Translation of Financial statements originally issued in Spanish – See Note 43)
(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of September 30, 2021, unless otherwise expressly stated)
| c) | The main items of income tax expense in the condensed consolidated interim financial statements are as<br>follows: | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| 09/30/2021 | 09/30/2020 | ||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Description | Quarter <br> ended <br> 09/30/2021 | Accumulated <br><br> from beginning<br><br> of year up to<br> 09/30/2021 | Quarter <br> ended <br> 09/30/2020 | Accumulated <br> from beginning<br><br> of year up to<br> 09/30/2020 | |||||||
| Current income tax expense (1) | 2,030,845 | 4,540,677 | 6,430,126 | 11,317,435 | |||||||
| (Income) / Loss for deferred income taxes | (2,094,901 | ) | (803,644 | ) | (2,153,707 | ) | 3,533,783 | ||||
| Monetary effects | 349,092 | 764,006 | 547,900 | 1,069,453 | |||||||
| Income tax loss recorded in the statement of income | 285,036 | 4,501,039 | 4,824,319 | 15,920,671 | |||||||
| Income tax loss recorded in other comprehensive income | 121,037 | 712,318 | 71,859 | 187,652 | |||||||
| Total | 406,073 | 5,213,357 | 4,896,178 | 16,108,323 |
(1) See the following paragraph.
As decided by the Board of Directors in the meeting dated May 11, 2020, considering certain case-law on the subject assessed by its legal and tax advisors, on May 26, 2020, 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 an 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 amount) 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.
On the other hand, 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). Both cases are currently at the trial stage.
With respect to 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.
- 40 -
NOTES TO THE CONDENSED CONSOLIDATED INTERIMFINANCIAL STATEMENTS
AS OF SEPTEMBER 30, 2021
(Translation of Financial statements originally issued in Spanish – See Note 43)
(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of September 30, 2021, unless otherwise expressly stated)
| 20. | COMMISSIONS INCOME | |||||||
|---|---|---|---|---|---|---|---|---|
| 09/30/2021 | 09/30/2020 | |||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Composition | Quarter<br> ended <br> 09/30/2021 | Accumulated<br><br> from beginning<br><br> of year up to<br> 09/30/2021 | Quarter <br> ended<br> 09/30/2020 | Accumulated<br><br> from beginning<br><br> of year up to<br> 09/30/2020 | ||||
| Performance obligations satisfied at a point in time | ||||||||
| Commissions related to obligations | 4,822,967 | 13,665,629 | 4,599,153 | 13,492,564 | ||||
| Commissions related to credit cards | 2,815,432 | 8,053,240 | 2,955,964 | 8,575,956 | ||||
| Commissions related to insurance | 500,931 | 1,535,835 | 548,500 | 1,631,858 | ||||
| Commissions related to trading and foreign exchange transactions | 210,220 | 579,549 | 225,045 | 528,614 | ||||
| Commissions related to securities value | 194,558 | 492,371 | 229,477 | 542,301 | ||||
| Commissions related to loans and other financing | 29,428 | 99,050 | 47,466 | 207,201 | ||||
| Commissions related to financial guarantees granted | 981 | 2,355 | 157 | 690 | ||||
| Performance obligations satisfied over certain time period | ||||||||
| Commissions related to credit cards | 82,059 | 256,985 | 120,039 | 369,205 | ||||
| Commissions related to trading and foreign exchange transactions | 8,062 | 27,317 | 22,416 | 48,517 | ||||
| Commissions related to loans and other financing | 1,843 | 2,179 | 285 | 898 | ||||
| Commissions related to obligations | 366 | 795 | 39 | 1,175 | ||||
| Commissions related to financial guarantees granted | 86 | 1 | ||||||
| Total | 8,666,847 | 24,715,391 | 8,748,541 | 25,398,980 | ||||
| 21. | DIFFERENCES IN QUOTED PRICES OF GOLD AND FOREIGN CURRENCY | |||||||
| --- | --- | |||||||
| 09/30/2021 | 09/30/2020 | |||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Composition | Quarter <br> ended <br> 09/30/2021 | Accumulated<br> from beginning<br> of year up to<br> 09/30/2021 | Quarter <br> ended<br> 09/30/2020 | Accumulated<br> from beginning<br> of year up to<br> 09/30/2020 | ||||
| Translation of foreign currency assets and liabilities into pesos | 459,013 | 2,413,563 | 1,143,774 | 3,021,910 | ||||
| Income from foreign currency exchange | 132,555 | 351,922 | 696,463 | 1,028,686 | ||||
| Total | 591,568 | 2,765,485 | 1,840,237 | 4,050,596 |
- 41 -
NOTES TO THE CONDENSED CONSOLIDATED INTERIMFINANCIAL STATEMENTS
AS OF SEPTEMBER 30, 2021
(Translation of Financial statements originally issued in Spanish – See Note 43)
(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of September 30, 2021, unless otherwise expressly stated)
| 22. | OTHER OPERATING INCOME | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| 09/30/2021 | 09/30/2020 | |||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Composition | Quarter <br> ended <br> 09/30/2021 | Accumulated <br> from beginning<br> of year up to<br> 09/30/2021 | Quarter <br> ended<br> 09/30/2020 | Accumulated<br> from beginning<br> of year up to<br> 09/30/2020 | ||||||
| Services | 1,136,641 | 2,854,037 | 1,047,727 | 3,129,465 | ||||||
| Adjustments and interest from other receivables | 207,403 | 812,349 | 237,586 | 746,979 | ||||||
| Other receivables for financial intermediation | 128,415 | 698,828 | 282,189 | 333,951 | ||||||
| Adjustments from other receivables with CER clauses | 69,553 | 244,891 | 48,141 | 168,827 | ||||||
| Sale of property, plant and equipment | (7 | ) | 2,303 | 7,754 | 8,496 | |||||
| For derecognition or substantial modification of financial liabilities | 4,389 | 314,598 | ||||||||
| Initial recognition of loans | (18,172 | ) | 11,216 | |||||||
| Other | 221,616 | 691,053 | 191,881 | 735,154 | ||||||
| Total | 1,763,621 | 5,303,461 | 1,801,495 | 5,448,686 | ||||||
| 23. | EMPLOYEE BENEFITS | |||||||||
| --- | --- | |||||||||
| 09/30/2021 | 09/30/2020 | |||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | ||
| Composition | Quarter <br> ended <br> 09/30/2021 | Accumulated<br> from beginning<br> of year up to<br> 09/30/2021 | Quarter<br> ended <br> 09/30/2020 | Accumulated<br> from beginning<br> of year up to<br> 09/30/2020 | ||||||
| Remunerations | 6,320,181 | 19,308,274 | 7,038,587 | 20,178,374 | ||||||
| Payroll taxes | 1,458,539 | 4,409,229 | 1,561,953 | 4,484,180 | ||||||
| Compensations and bonuses to employees | 992,452 | 2,636,652 | 627,572 | 1,823,465 | ||||||
| Employee services | 252,639 | 644,031 | 223,630 | 552,559 | ||||||
| Total | 9,023,811 | 26,998,186 | 9,451,742 | 27,038,578 |
- 42 -
NOTES TO THE CONDENSED CONSOLIDATED INTERIMFINANCIAL STATEMENTS
AS OF SEPTEMBER 30, 2021
(Translation of Financial statements originally issued in Spanish – See Note 43)
(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of September 30, 2021, unless otherwise expressly stated)
| 24. | ADMINISTRATIVE EXPENSES | |||||||
|---|---|---|---|---|---|---|---|---|
| 09/30/2021 | 09/30/2020 | |||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Composition | Quarter<br> ended<br> 09/30/2021 | Accumulated <br> from beginning<br> of year up to<br> 09/30/2021 | Quarter<br> ended <br> 09/30/2020 | Accumulated<br> from beginning<br> of year up to<br> 09/30/2020 | ||||
| Maintenance, conservation and repair expenses | 773,823 | 2,202,871 | 774,018 | 2,227,818 | ||||
| Armored truck, documentation and events | 690,340 | 1,887,769 | 735,425 | 2,072,207 | ||||
| Taxes | 674,423 | 1,984,964 | 617,490 | 1,880,098 | ||||
| Security services | 468,623 | 1,380,277 | 472,091 | 1,472,237 | ||||
| Electricity and communications | 451,720 | 1,406,536 | 519,882 | 1,595,045 | ||||
| Software | 371,666 | 1,092,856 | 370,084 | 1,092,564 | ||||
| Other fees | 365,569 | 1,096,092 | 313,046 | 925,475 | ||||
| Advertising and publicity | 219,658 | 475,403 | 114,453 | 349,672 | ||||
| Fees to directors and syndics | 121,305 | 359,515 | 402,414 | 1,396,364 | ||||
| Insurance | 73,662 | 189,028 | 65,241 | 171,207 | ||||
| Representation, travel and transportation expenses | 49,243 | 128,914 | 37,097 | 130,606 | ||||
| Stationery and office supplies | 29,681 | 81,481 | 32,484 | 96,355 | ||||
| Leases | 20,807 | 79,492 | 14,784 | 99,267 | ||||
| Hired administrative services | 2,387 | 7,083 | 2,527 | 4,441 | ||||
| Other | 179,612 | 508,003 | 712,546 | 1,063,055 | ||||
| Total | 4,492,519 | 12,880,284 | 5,183,582 | 14,576,411 | ||||
| 25. | OTHER OPERATING EXPENSES | |||||||
| --- | --- | |||||||
| 09/30/2021 | 09/30/2020 | |||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Composition | Quarter <br> ended <br> 09/30/2021 | Accumulated <br> from beginning<br> of year up to<br> 09/30/2021 | Quarter <br> ended <br> 09/30/2020 | Accumulated<br> from beginning<br> of year up to<br> 09/30/2020 | ||||
| Turnover tax | 4,014,130 | 12,203,394 | 3,801,178 | 11,850,581 | ||||
| For credit cards | 1,854,491 | 4,788,163 | 1,705,467 | 4,703,708 | ||||
| Charges for other provisions | 334,388 | 1,014,455 | 399,395 | 1,240,222 | ||||
| Deposit guarantee fund contributions | 224,729 | 724,925 | 280,955 | 725,421 | ||||
| Taxes | 81,363 | 287,837 | 184,897 | 603,061 | ||||
| Interest on lease liabilities | 50,928 | 152,706 | 59,653 | 188,726 | ||||
| Insurance claims | 19,194 | 47,600 | 19,484 | 71,630 | ||||
| Loss from sale or impairment of investments in properties and other non-financial assets | 9,051 | 71,426 | 17,484 | 40,579 | ||||
| Donations | 6,894 | 9,045 | 653 | 224,697 | ||||
| For administrative, disciplinary and criminal penalties | 37,775 | |||||||
| Other | 946,737 | 2,762,351 | 524,596 | 1,552,562 | ||||
| Total | 7,541,905 | 22,099,677 | 6,993,762 | 21,201,187 |
- 43 -
NOTES TO THE CONDENSED CONSOLIDATED INTERIMFINANCIAL STATEMENTS
AS OF SEPTEMBER 30, 2021
(Translation of Financial statements originally issued in Spanish – See Note 43)
(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of September 30, 2021, unless otherwise expressly stated)
| 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 | 09/30/2021 | 12/31/2020 | 09/30/2020 | 12/31/2019 | ||||
|---|---|---|---|---|---|---|---|---|
| Cash and deposits in banks | 166,007,954 | 178,000,766 | 172,191,131 | 187,723,338 | ||||
| Debt Securities at fair value through profit or loss | 68,142 | |||||||
| Other debt securities | 140,552,609 | 182,450,600 | 199,043,891 | 86,536,134 | ||||
| Loans and other financing | 493,675 | 576,216 | 580,725 | 558,387 | ||||
| Total | 307,122,380 | 361,027,582 | 371,815,747 | 274,817,859 | ||||
| 27. | CAPITAL STOCK | |||||||
| --- | --- |
The Bank’s subscribed and paid-in capital as of September 30, 2021, amounted to 639,413. Since December 31, 2018, the Bank’s capital stock has changed as follows:
| Capital stock <br> issued and<br> paid-in | Issued <br> outstanding | In treasury | |||||||
|---|---|---|---|---|---|---|---|---|---|
| As of December 31, 2018 | 669,663 | 640,715 | 28,948 | ||||||
| Own shares acquired (1) | (1,317 | ) | 1,317 | ||||||
| Capital stock decrease (2) | (30,265 | ) | (30,265 | ) | |||||
| Capital stock increase (3) | 15 | 15 | |||||||
| As of September 30, 2021 and December 31, 2020 and 2019 | 639,413 | 639,413 | |||||||
| (1) | Related to the repurchase of the Bank’s own shares under the programs established by the Bank’s<br>Board of Directors on August 8, 2018, October 17, 2018 and December 20, 2018 with the purpose of reducing share price fluctuations,<br>minimizing possible temporary imbalances between market supply and demand. | ||||||||
| --- | --- |
- 44 -
NOTES TO THE CONDENSED CONSOLIDATED INTERIMFINANCIAL STATEMENTS
AS OF SEPTEMBER 30, 2021
(Translation of Financial statements originally issued in Spanish – See Note 43)
(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of September 30, 2021, unless otherwise expressly stated)
The Program dated on August 8, 2018, established, that the maximum amount of the investment amounted to 5,000,000 and the maximum numbers of shares to be acquired were equivalent to 5% of the capital stock. At the end of this program the Bank had acquired 21,463,005 common, registered, Class B shares with a face value of Ps. 1 each one entitled with one vote for an amount of 10,610,337 (nominal value: 3,113,925).
The Program dated on October 17, 2018, established the start over of the repurchase of the Bank’s own shares, with the pending use of funds of the abovementioned Program, already expired. At the end of this program, the Bank had acquired 6,774,019 common, registered, Class B shares with a face value of Ps. 1 each one entitled with one vote for an amount of 3,021,980 (nominal value: 995,786).
The Program dated on December 20, 2018, established that the maximum amount of the investment amounted to 900,000 and the maximum numbers of shares to be acquired were equivalent to 1% of the capital stock. At the end of this program the Bank had acquired 2,028,251 common, registered, Class B shares with a face value of Ps. 1 each one entitled with one vote for an amount of 855,312 (nominal value: 298,196) of which, as of December 31, 2018 were settled 711,386 common shares for an amount of 282,105 (nominal value: 98,353), and in January 2019 were settled 1,316,865 common shares for an amount of 573,207 (nominal value: 199,843).
| (2) | Related to capital stock decrease approved by the Shareholders’ Meeting of Banco Macro SA held on<br>April 30, 2019 for an amount of 30,265, equivalent to 30,265,275 common, registered, Class B shares with a face value of Ps.<br>1 each one entitled with one vote, equivalent to all the own shares acquired on that date. On August 14, 2019 the Bank was notified<br>that the capital stock decrease was registered at the Public Registry of Commerce. |
|---|---|
| (3) | Related to the capital stock increase through the issuance of 15,662 common, registered, Class B<br>shares with a face value of Ps. 1 each one entitled with one vote, approved by Shareholders’ Meeting mentioned in (2), due to the<br>merger effects between Banco Macro SA and Banco del Tucumán SA. On October 29, 2019 the Bank was notified that the capital<br>stock increase was registered at the Public Registry of Commerce. |
| --- | --- |
| 28. | EARNINGS PER SHARE - DIVIDENDS |
| --- | --- |
Basic earnings per share were calculated by dividing net profit attributable to common shareholders of the Bank by the weighted average number of common shares outstanding during the period.
To determine the weighted average number of common shares outstanding during the period, the Bank used the number of common shares outstanding at the beginning of the period adjusted, if applicable, by the number of common shares bought back or issued during the period multiplied by the number of days that the shares were outstanding in the period. Note 27 provides a breakdown of the changes in the Bank’s capital stock.
The calculation of basic earnings per share is disclosed in the table of Earnings per share included in the consolidated statement of income. See additionally note 38 and the Earning distribution proposal.
Dividends paid and proposed
The Shareholders’ Meeting held on April 30, 2020, resolved to distribute cash dividends for 12,788,268 (not restated), which considering the number of shares outstanding at the date of such resolution, represented 20 pesos per share (not restated). According to Communiqué “A” 7035, the Central Bank extended the suspension of payment on earning distributions up to December 31, 2020. Afterwards, through Communiqué “A” 7181, such suspension was extended up to June 30, 2021. On June 24, 2021, the BCRA through Communiqué “A” 7312, decided to extend the abovementioned suspension up to December 31, 2021. The Shareholders’ Meeting held on October 21, 2020, resolved to distribute a supplementary cash dividend which will be calculated by multiplying the dividend of 20 pesos per share already approved by the Shareholders’ Meeting held on April, 30 2020, by the coefficient obtained after dividing the most recent CPI published by the INDEC and informed by such entity to the date on which the BCRA issues its authorization for the payment, by the CPI for the month of April 2020. The aggregate amount to be distributed for this purpose may not exceed the amount of 3,791,722 (not restated).
- 45 -
NOTES TO THE CONDENSED CONSOLIDATED INTERIMFINANCIAL STATEMENTS
AS OF SEPTEMBER 30, 2021
(Translation of Financial statements originally issued in Spanish – See Note 43)
(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of September 30, 2021, unless otherwise expressly stated)
The Shareholders’ Meeting held on April 30, 2021, resolved to distribute cash dividends or dividends in kind, in this case, measured at market value, or any combination of both alternatives for an amount of 10,000,426 (not restated) which considering the number of shares outstanding at the date of such resolution, represented 15.64 pesos per share (not restated), subject to prior authorization of BCRA. As mentioned in the previous paragraph and according to Communiqué “A” 7312, the cash dividends payment is suspended, up to December 31, 2021. For further information see also note 38.
| 29. | DEPOSIT GUARANTEE INSURANCE |
|---|
Law No. 24485 and Decree No. 540/1995 created the Deposit Guarantee Insurance System, which was featured as a limited, compulsory and onerous system, aimed at covering the risks of bank deposits, as subsidiary and supplementary to the deposit privilege and protection system established under the Financial Entities Law. The above- mentioned legislation also provided for the incorporation of Sedesa with the exclusive purpose of managing the Deposit Guarantee Fund (DGF). Sedesa was incorporated in August 1995.
Banco Macro SA holds an 8.4180% interest in the capital stock of Sedesa according to the percentages disclosed by BCRA Communiqué “B” 12152 on April 14, 2021.
All deposits in pesos and foreign currency placed in participating entities in the form of checking accounts, savings accounts, certificates of deposits or other forms of deposit that the BCRA may determine from time to time shall be subject to the abovementioned Deposit Guarantee Insurance System up to the amount of 1,500 which must meet the requirements provided for in Presidential Decree 540/1995 and other requirements that the regulatory authority may from time to time determine. On the other hand, the BCRA provided for the exclusion of the guarantee system, among others, of any deposits made by other financial entities, deposits made by persons related to the Bank and securities deposits.
| 30. | RESTRICTED ASSETS |
|---|
As of September 30, 2021 and December 31, 2020, the following Bank’s assets are restricted:
| Composition | 09/30/2021 | 12/31/2020 | |||
|---|---|---|---|---|---|
| Debt securities at fair value through profit or loss and other debt securities | |||||
| · | Federal Government Treasury Bonds in pesos adjusted by CER<br>1.30% maturity 09/20/2022 as of September 30, 2021 and Federal Government Treasury letters at discount in pesos maturity 01/29/2021<br>as of December 31, 2020, securing the transaction of MAE Futuro Garantizado CPC2. | 353,056 | 26,844 | ||
| · | Discount bonds in pesos regulated by Argentine legislation,<br>maturing 2033 for minimum statutory guarantee account required for Agents to act in the new categories contemplated under Resolution<br>No. 622/2013, as amended, of the CNV. | 41,045 | 45,095 | ||
| · | Federal Government Treasury Bonds in pesos adjusted by CER<br>1.40% maturity 03/27/2023 as of September 30, 2021 and Federal Government Treasury Bonds in pesos adjusted by CER 1%, maturing 2021,<br>securing the sectorial Credit Program of the Province of San Juan, production investment financing fund. | 38,951 | 83,791 | ||
| · | Federal Government Treasury Bonds in pesos adjusted by CER<br>1%, maturing 2021 securing the regional economies Competitiveness Program – IDB loan No. 3174/OC-AR. | 15,746 | 53,918 | ||
| · | Federal Government Treasury Bonds in pesos adjusted by CER<br>1.40% maturity 03/27/2023 as of September 30, 2021 and Federal Government Treasury Bonds in pesos adjusted by CER 1%, maturing 2021<br>for the contribution to the Guarantee Fund II in BYMA according to section 45 Law 26831 and supplementary regulations established by<br>CNV standards (NT 2013, as amended). | 6,630 | 4,372 |
- 46 -
NOTES TO THE CONDENSED CONSOLIDATED INTERIMFINANCIAL STATEMENTS
AS OF SEPTEMBER 30, 2021
(Translation of Financial statements originally issued in Spanish – See Note 43)
(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of September 30, 2021, unless otherwise expressly stated)
| Composition (contd.) | 09/30/2021 | 12/31/2020 | |||
|---|---|---|---|---|---|
| Debt securities at fair value through profit or loss and other debt securities (contd.) | |||||
| · | Discount bonds in pesos regulated by Argentine legislation,<br>maturing 2033 used as security in favor of Sedesa (1). | 200,586 | |||
| Subtotal debt securities at fair value through profit or loss and other debt securities | 455,428 | 414,606 | |||
| Other financial assets | |||||
| · | Mutual fund shares for minimum statutory guarantee account<br>required for Agents to act in the new categories contemplated under Resolution No. 622/13, as amended, of the CNV. | 140,098 | 141,412 | ||
| · | Sundry debtors – Other. | 5,234 | 15,694 | ||
| · | Sundry debtors – attachment within the scope of the claim<br>filed by the DGR against the CABA for differences on turnover tax. | 827 | 1,133 | ||
| Subtotal Other financial assets | 146,159 | 158,239 | |||
| Loans and other financing – non-financial private sector and foreign residents | |||||
| · | Interests derived from contributions made as contributing partner<br>(2). | 500,000 | 356,091 | ||
| Subtotal loans and other financing | 500,000 | 356,091 | |||
| 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. | 14,639,772 | 16,490,757 | ||
| · | For securities forward contracts. | 2,023,180 | 952,882 | ||
| · | Guarantee deposits related to credit and debit card transactions. | 1,758,404 | 1,804,926 | ||
| · | Other guarantee deposits. | 430,353 | 325,954 | ||
| Subtotal Financial assets delivered as a guarantee | 18,851,709 | 19,574,519 | |||
| Other non-financial assets | |||||
| · | Real property related to a call option sold | 295,304 | 296,404 | ||
| Subtotal other non-financial assets | 295,304 | 296,404 | |||
| Total | 20,248,600 | 20,799,859 | |||
| (1) | As replacement for the preferred shares of former Nuevo Banco Bisel SA to secure to Sedesa the price payment<br>and the fulfillment of all the obligations assumed in the purchase and sale agreement dated May 28, 2007, maturing on August 11,<br>2021. Due to the Bank paid such obligations on August 12, 2021, as of the date of issuance of these condensed consolidated interim<br>financial statements, the pledge over the discount bonds in pesos regulated by Argentine legislation was lifted. | ||||
| --- | --- | ||||
| (2) | As of September 30, 2021 and December 31, 2020 it is related to the risk fund Fintech SGR and<br>Garantizar SGR. In order to keep tax benefits related to these contributions, they must be maintained between two and three years from<br>the date they were made. | ||||
| --- | --- |
Moreover, on October 1, 2021 the Bank executed the call option which gives right to increase up to 24.99% the Bank’s interest in the capital stock of Fintech SGR. See also note 1.
- 47 -
NOTES TO THE CONDENSED CONSOLIDATED INTERIMFINANCIAL STATEMENTS
AS OF SEPTEMBER 30, 2021
(Translation of Financial statements originally issued in Spanish – See Note 43)
(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of September 30, 2021, unless otherwise expressly stated)
| 31. | 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:
| 31.1. | Financial trusts for investment purposes |
|---|
Debt securities include mainly prepayments towards the placement price of provisional trust securities of the financial trusts under public and private offerings (Red Surcos). The assets managed for these trusts are mainly related to securitizations of consumer loans. Trust securities are placed once the public offering is authorized by the CNV. Upon expiry of the placement period, once all trust securities have been placed on the market, the Bank recovers the disbursements made, plus an agreed-upon compensation. If after making the best efforts, such trust securities cannot be placed, the Bank will retain the definitive trust securities.
In addition, the Bank’s portfolio is completed with financial trusts for investment purposes, trust securities of definitive financial trusts in public and private offering (Secubono, Accicom and Confibono) and certificates of participation (Arfintech).
As of September 30, 2021 and December 31, 2020, debt securities and certificates of participation in financial trusts for investment purposes, total 347,621 and 779,237, 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.
| 31.2. | 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 for which collection is guaranteed by the cash flow resulting from such assets or group of assets. Through this way the funds that were originally used by the Bank to finance the loans are obtained earlier.
As of September 30, 2021 and December 31, 2020, considering the latest available accounting information as of the date of these condensed consolidated interim financial statements, the assets managed through Macro Fiducia SA (subsidiary) of this type of trusts amounted to 9,604 and 9,095, respectively.
| 31.3. | Trusts guaranteeing loans granted by the Bank |
|---|
As it is common in the Argentine banking market, the Bank requires, in some cases, that the debtors present certain assets or entitlements to receive assets in a trust as a guarantee for the loans granted. This way, the risk of losses is minimized and access to the security is guaranteed in case of the debtor's non-compliance.
Trusts usually act as conduits to collect cash from the debtor’s flow of operations and send it to the Bank for the payment of the debtor’s loans and thus ensure compliance with the obligations assumed by the trustor and guaranteed through the trust.
Additionally, other guarantee trusts manage specific assets, mainly real property.
Provided there is no non-compliance or delays by debtor in the obligations assumed with the beneficiary, the trustee shall not execute the guarantee and all excess amounts as to the value of the obligations are reimbursed by the trustee to the debtor.
As of September 30, 2021 and December 31, 2020, considering the latest available accounting information as of the date of these condensed consolidated interim financial statements, the assets managed by the Bank amounted to 2,027,665 and 2,823,583, respectively.
| 31.4. | 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.
- 48 -
NOTES TO THE CONDENSED CONSOLIDATED INTERIMFINANCIAL STATEMENTS
AS OF SEPTEMBER 30, 2021
(Translation of Financial statements originally issued in Spanish – See Note 43)
(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of September 30, 2021, unless otherwise expressly stated)
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 the existence of the resources required to finance and/or pay<br>certain obligations, such as the payment of amortization installments regarding work or service certificates, and the payment of invoices<br>and fees stipulated in the related agreements. |
|---|---|
| - | Promoting the production development of the private economic sector at a provincial level. |
| --- | --- |
| - | Being a party to public work concession agreements granting road exploitation, management, keeping and<br>maintenance. |
| --- | --- |
As of September 30, 2021 and December 31, 2020, considering the latest available accounting information as of these condensed consolidated interim financial statements, the assets managed by the Bank amounted to 12,144,110 and 12,718,137, respectively.
| 32. | COMPLIANCE WITH CNV REGULATIONS |
|---|
32.1 Compliance with CNV standards to act in the different agent categories defined by the CNV:
32.1.1 Operations of Banco Macro SA
Considering Banco Macro SA’s current operations, and according to the different categories of agents established by CNV rules (as per General Resolution No. 622/2013, as amended), the Bank is registered with this agency as agent for the custody of collective investment products of mutual funds (AC PIC FCI, for their acronyms in Spanish) – Depositary company comprehensive clearing and settlement agent and trading agent (ALyC and AN – comprehensive, for their acronyms in Spanish), financial trustee agent (FF, for its acronym in Spanish) and Guarantee Entity (in the process of being registered).
Additionally, the Bank’s shareholders’ equity as of September 30, 2021 stated in UVAs amounted to 2,330,404,721 and exceeds minimum amount required by this regulation for the different categories of agents in which the Bank is registered, amounting to 1,420,350 UVAs as of that date, and the minimum statutory guarantee account required of 710,175 UVAs, which the Bank paid-in with government securities as described in note 30 and the cash deposits in BCRA accounts 000285 and 80285 belonging to the Bank.
32.1.2 Operations of Macro Securities SA
Considering the current operations of this subsidiary, and according to the provisions established by CNV effective as of the approval of General Resolution No. 622/2013, as amended, issued by such agency, such Company is registered under the following categories: clearing and settlement agent, trading agent, comprehensive trading agent and mutual investment funds placement and distribution agent (ALyC , AN – comprehensive and ACyD FCI).
Additionally, the shareholders’ equity of such Company as of September 30, 2021 stated in UVAs amounted to 29,253,346 and exceeds the minimum amount required by this 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, the agents “ACyD FCI” are required to have a minimum Shareholder’s equity up to 2,500.
- 49 -
NOTES TO THE CONDENSED CONSOLIDATED INTERIMFINANCIAL STATEMENTS
AS OF SEPTEMBER 30, 2021
(Translation of Financial statements originally issued in Spanish – See Note 43)
(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of September 30, 2021, unless otherwise expressly stated)
32.1.3 Operations of Macro Fondos Sociedad Gerente de Fondos Comunes de Inversión SA
Considering the current operations of this subsidiary, and according to the provisions established by CNV effective as of the approval of General Resolution No. 622/2013, as amended, issued by such agency, such Company is registered as agent for the Administration of Collective Investment Products of Mutual Funds.
Additionally, the shareholders’ equity of this Company as of September 30, 2021 stated in UVAs amounted to 6,871,250 and exceeds the minimum amount required by this regulation, amounting to 150,000 UVAs plus 20,000 UVAs per each additional mutual fund it manages. The minimum statutory guarantee account required a minimum of 50% of the minimum amount of Shareholders’ equity, which the Company paid-in with mutual fund shares.
32.1.4 Operations of Macro Fiducia SA
Considering the current operations of this subsidiary and according to the provisions established by CNV effective as of the approval of General Resolution 622/2013, as amended, issued by such agency, such Company is registered as financial trustee agent and non-financial trustee agent.
Additionally, the shareholders’ equity of such Company as of September 30, 2021 and December 31, 2020 stated in UVAs amounted to 1,047,230 and 1,142,819, respectively, and exceeds the minimum amount required by General resolution No. 795 established in 950,000 UVAs. The minimum statutory guarantee account requires a minimum of 50% of the minimum amount of Shareholders’ equity, which the Company paid-in with mutual fund shares. The CNV through General resolution No. 825, decided that the 50% of the amounts required as of September 30, 2021 and December 31, 2020, shall be credited and the Shareholders’ equity may not be less than 6,000.
32.2 Documents in custody
As a general policy, the Bank delivers for custody to third parties the documentary support of its aged accounting and management operations, i.e. those whose date is prior to the last fiscal year-end, except for the Inventory Book, in which aging is deemed to include those with a date prior to the two fiscal years ended. In compliance with CNV General Resolution No. 629 requirements, the Bank has placed (i) the Inventory Books for fiscal years ended through December 31, 2017 included, and (ii) certain documentation supporting the economic transactions for fiscal years ended through December 31, 2017, included, under the custody of the following companies: AdeA Administradora de Archivos SA (warehouse located at Ruta 36, km 31.5, Florencio Varela, Province of Buenos Aires) and ADDOC Administración de Documentos SA (warehouse located at Avenida Circunvalación Agustín Tosco with no number, Colectora Sur, between Puente San Carlos and Puente 60 blocks, Province of Córdoba and Avenida Luis Lagomarsino 1750, formerly Ruta 8 Km 51.200, Pilar, Province of Buenos Aires).
In addition, the documentary support on a digital format is protected on the Bank’s servers.
32.3 As depositary of mutual funds
As of September 30, 2021 Banco Macro SA, in its capacity as depositary company, holds in custody the shares in mutual funds subscribed by third parties and assets from the following mutual funds:
| Funds | Number of shares | Equity | ||
|---|---|---|---|---|
| Argenfunds Abierto Pymes | 3,229,855,263 | 8,160,965 | ||
| Argenfunds Ahorro Pesos | 118,079,528 | 1,409,029 | ||
| Argenfunds Liquidez | 4,137,428,810 | 8,375,033 | ||
| Argenfunds Renta Argentina | 7,991,639 | 33,806 | ||
| Argenfunds Renta Balanceada | 633,948,926 | 3,541,850 |
- 50 -
NOTES TO THE CONDENSED CONSOLIDATED INTERIMFINANCIAL STATEMENTS
AS OF SEPTEMBER 30, 2021
(Translation of Financial statements originally issued in Spanish – See Note 43)
(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of September 30, 2021, unless otherwise expressly stated)
| Funds (contd.) | Number of shares | Equity | ||
|---|---|---|---|---|
| Argenfunds Renta Capital | 25,107,896 | 2,536,416 | ||
| Argenfunds Renta Crecimiento | 18,053,005 | 1,854,201 | ||
| Argenfunds Renta Dinámica | 23,461,459,112 | 665,932 | ||
| Argenfunds Renta Fija | 181,591,580 | 3,333,537 | ||
| Argenfunds Renta Flexible | 983,087,927 | 3,943,754 | ||
| Argenfunds Renta Global | 8,983,257 | 41,456 | ||
| Argenfunds Renta Mixta | 147,968 | 149 | ||
| Argenfunds Renta Mixta Plus | 353,432 | 30,804 | ||
| Argenfunds Renta Pesos | 94,203,939 | 823,839 | ||
| Argenfunds Renta Total | 835,175,866 | 1,093,670 | ||
| Argenfunds Renta Variable | 451,192,233 | 13,438 | ||
| Argenfunds Retorno Absoluto | 586,870,366 | 1,456,898 | ||
| Pionero Acciones | 10,512,742 | 522,305 | ||
| Pionero Ahorro Dólares | 3,613,442 | 323,496 | ||
| Pionero Argentina Bicentenario | 419,358,269 | 1,339,673 | ||
| Pionero Empresas FCI Abierto Pymes | 241,527,629 | 1,657,867 | ||
| Pionero FF | 44,127,718 | 902,084 | ||
| Pionero Gestión | 904,319,038 | 1,325,657 | ||
| Pionero Pesos | 605,015,951 | 6,658,295 | ||
| Pionero Pesos Plus | 10,032,093,073 | 66,400,833 | ||
| Pionero Renta | 108,927,485 | 7,306,232 | ||
| Pionero Renta Ahorro | 416,433,790 | 10,356,532 | ||
| Pionero Renta Ahorro Plus | 341,658,424 | 1,807,044 | ||
| Pionero Renta Balanceado | 100,000 | 100 | ||
| Pionero Renta Estratégico | 710,168,940 | 2,691,598 | ||
| Pionero Renta Fija Dólares | 3,019,951 | 224,936 | ||
| Pionero Renta Mixta I | 31,222,381 | 181,576 | ||
| 33. | ACCOUNTING ITEMS THAT IDENTIFY THE COMPLIANCE WITH MINIMUM CASH REQUIREMENTS | |||
| --- | --- |
The items recognized by the Bank to constitute the minimum cash requirement effective for September 2021 are listed below, indicating the amounts as of month-end of the related items:
- 51 -
NOTES TO THE CONDENSED CONSOLIDATED INTERIMFINANCIAL STATEMENTS
AS OF SEPTEMBER 30, 2021
(Translation of Financial statements originally issued in Spanish – See Note 43)
(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of September 30, 2021, unless otherwise expressly stated)
| Items | Banco Macro SA | |
|---|---|---|
| Cash and deposits in banks | ||
| Amounts in BCRA accounts | 93,618,895 | |
| Other debt securities | ||
| Liquidity letters of Central Bank of Argentina computable for the minimum cash requirements | 45,601,203 | |
| Government securities computable for the minimum cash requirements | 19,958,443 | |
| Financial assets delivered as guarantee | ||
| Special guarantee accounts with the BCRA | 14,639,772 | |
| Total | 173,818,313 | |
| 34. | PENALTIES APPLIED TO THE ENTITY 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.
Next follows a description of the situation of Banco Macro SA as of September 30, 2021:
Summary proceedings filed by the BCRA
Financial summary proceedings: No. 1496 dated 02/24/2016. Penalty amount: 30,608 (not restated).
Reason: control observations over subsidiaries.
Proceeding filed against: Banco Macro SA and the Members of the Board of Directors (Jorge Horacio Brito, Delfín Jorge Ezequiel Carballo, Jorge Pablo Brito, Marcos Brito, Juan Pablo Brito Devoto, Luis Carlos Cerolini, Carlos Enrique Videla, Alejandro Macfarlane, Guillermo Eduardo Stanley, Constanza Brito and Emanuel Antonio Alvarez Agis).
Status: pending resolution before the BCRA. On 04/07/2016, we filed the defenses and evidence. On 05/18/2016 we requested on behalf of Mr. Delfín Jorge Ezequiel Carballo the resolution of the motion for lack of standing to be sued. On 09/09/2020 – notified on 02/22/2021, the BCRA filed Resolution No. 132/20 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), where is pending resolution. The fine imposed to Mr. Jorge Horacio Brito was abrogated due to his passing. On 09/08/2021, it was incorporated the decision issued by the civil and commercial federal prosecutor office which ruled that the Courtroom is competent to challenge against the decision and that there are no other observations over the admissibility of the direct appeal.
Penalties imposed by the Financial Information Unit (UIF)
File: No. 62/2009 dated 01/16/2009.
Reason: observations on the purchase of foreign currency from April 2006 through August 2007. Penalty amount: 718 (not restated).
Penalty imposed on: Banco Macro SA and those in charge of anti-money laundering regulation compliance (Juan Pablo Brito Devoto and Luis Carlos Cerolini).
- 52 -
NOTES TO THE CONDENSED CONSOLIDATED INTERIMFINANCIAL STATEMENTS
AS OF SEPTEMBER 30, 2021
(Translation of Financial statements originally issued in Spanish – See Note 43)
(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of September 30, 2021, unless otherwise expressly stated)
Status: the UIF passed Resolution No. 72/2011 on 06/09/2011, imposing fines to those responsible. After successive remedies filed by the Bank, part of the fines were dismissed in relation to statute-barred periods, and the decision became final on 06/25/2019; therefore, the case file will be submitted to the UIF to readjust fines to the open period. As of the date, is pending that UIF readjust the fines related to transactions performed during the period beginning on 3/5/2007 and since 4/17/2007 to 8/22/2007 according to Courtroom III resolution of CNACAF dated 10/31/2016. On 04/27/2021 UIF, in compliance with what was ruled by Courtroom IV and Courtroom III of CNACAF, filed the Resolution No. 028 and readjusted the imposed fine for an amount of 502 which was paid by the Bank on 07/07/2021. This file is closed.
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).
Penalty imposed on: Banco Macro SA, the members of the Board and those in charge of anti-money laundering regulation compliance (Luis Carlos Cerolini – both as Compliance Officer and Director - and Jorge Horacio Brito, Delfín Jorge Ezequiel Carballo, Juan Pablo Brito Devoto, Jorge Pablo Brito, Alejandro Macfarlane, Carlos Enrique Videla, Guillermo Eduardo Stanley, Constanza Brito, Emanuel Antonio Alvarez Agis, Marcos Brito and Rafael Magnanini –as Directors of Banco Macro SA).
Status: on 12/26/2016 the UIF passed Resolution No. 164/16 imposing fines on those responsible and issuing a favorable decision on the plea of lack of capacity to be sued lodged by Messrs. Carballo and Magnanini. Against such resolution, the Bank and the individual responsibles filed direct appeals, which will be decided at Room III of the CNACAF. Such appeals were dismissed through a final sentence dated 07/18/2019. The term to file the federal extraordinary appeal against such resolution is already running. On 08/15/2019, the Bank filed a federal extraordinary appeal which was dismissed through resolution dated 09/26/2019. Against such resolution, on 10/03/2019 the Bank filed an appeal to Argentine Supreme Court (CSJN, for its acronym in Spanish), which is pending resolution from CSJN.
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.
Persons subject to summary proceedings: Banco Macro SA, the members of the Board, the regular members of the Statutory Audit Committee and the person/s responsible for market relations (Jorge Horacio Brito, Delfín Jorge Ezequiel Carballo, Juan Pablo Brito Devoto, Jorge Pablo Brito, Luis Carlos Cerolini, Roberto Julio Eilbaum, Alejandro Macfarlane, Carlos Enrique Videla, Guillermo Eduardo Stanley, Constanza Brito, Daniel Hugo Violatti, Ladislao Szekely, Santiago Marcelo Maidana and Herman Fernando Aner).
Status: on 10/28/2014 the Bank and the persons involved filed their defenses offering evidence and requesting their acquittal. On 08/03/2015 the term to produce evidence was closed and on 08/19/2015 the defendants lodged their memorials. On 03/04/2021, the Board of Directors of 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 where investigated. Against such resolution, on 05/03/2021 a direct appeal was filed. As of the date of issuance of these condensed consolidated interim financial statements, the appeal is pending to be filed to CNACAF.
File: 2577/2014 (CNV Resolution No. 18863) dated 07/20/2017.
Reason: potential non-compliance with de provisions of section 59, Law 19550, and paragraph 1 of Chapter 6 Section 19 of Article IV of Chapter II of CNV Rules (Revised 2013, as amended) in force at the time of the issues under analysis.
Persons subject to summary proceedings: Banco Macro SA, in its capacity as custody agent of collective investment products of mutual funds, regular directors and regular members of the Statutory Audit Committee (Jorge Horacio Brito, Delfín Jorge Ezequiel Carballo, Jorge Pablo Brito, Marcos Brito, Juan Pablo Brito Devoto, Luis Carlos Cerolini, Federico Pastrana, Carlos Enrique Videla, Alejandro Macfarlane, Guillermo Eduardo Stanley, Constanza Brito, Emmanuel Antonio Alvarez Agis, Alejandro Almarza, Carlos Javier Piazza and Vivian Haydee Stenghele).
- 53 -
NOTES TO THE CONDENSED CONSOLIDATED INTERIMFINANCIAL STATEMENTS
AS OF SEPTEMBER 30, 2021
(Translation of Financial statements originally issued in Spanish – See Note 43)
(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of September 30, 2021, unless otherwise expressly stated)
Status: On May 22, 2019, the CNV (Argentine Securities Commission) issued Resolution No. 80/2019, whereby a warning penalty was imposed on the persons subject to the summary proceedings (except for Delfín J. E. Carballo and Federico Pastrana, as to whom the lack of capacity to be sued was sustained). On 6/7/2019, the Bank, its directors and statutory auditors filed a direct remedy requesting the abrogation of the penalty. The file was submitted to the CNACAF Courtroom II, which issued the resolution for the commencement of proceedings on 19/09/2019. The CNV has answered the served of the direct appeals filed by the Bank and Argenfunds. On 02/12/2021 the file moved to analyze in order to issue a final decision. On 06/16/2021, the prosecutor office issued a decision, dismissing the responsibles’ arguments. On 08/25/2021, the Courtroom II filed a final sentence in which decided the abrogation of the penalty imposed to Banco Macro SA and Mr. Jorge Horacio Brito, Jorge Pablo Brito, Marcos Brito, Juan Pablo Brito Devoto, Luis Carlos Cerolini, Carlos Enrique Videla, Alejandro Macfarlane, Guillermo Eduardo Stanley, Constanza Brito, Emmanuel Álvarez Agis, Alejandro Almarza, Carlos Javier Piazza and Vivian Haydee Stenghele. Such decision is final, therefore this file is ended.
File: No. 137/2015 (UIF Resolution No. 136/2017) dated 12/19/2017.
Reason: alleged breach to the contents of the Code of Procedure applicable to Anti-money Laundering and Terrorism Financing as Settlement and Clearing Agent at the time of an inspection of the CNV and to the Internal Audit Process referred to in its capacity as comprehensive settlement and clearing agent (UIF Resolution No. 229/2011, as amended).
Persons subject to summary proceedings: Banco Macro SA, members of the Management Body during the period that is the subject matter of these summary proceedings (Jorge Horacio Brito, Jorge Pablo Brito, Juan Pablo Brito Devoto, Constanza Brito, Marcos Brito, Delfín Jorge Ezequiel Carballo, Delfín Federico Ezequiel Carballo, Carlos Enrique Videla, Alejandro Macfarlane, Guillermo Eduardo Stanley, Emmanuel Antonio Alvarez Agis, Nicolás Alejandro Todesca, Carlos Alberto Giovanelli, José Alfredo Sanchez, Martín Estanislao Gorosito, Roberto Julio Eilbaum, Mario Luis Vicens, Nelson Damián Pozzoli, Luis María Blaquier, Ariel Marcelo Sigal, Alejandro Eduardo Fargosi, Juan Martin Monge Varela and Luis Cerolini in his double capacity as Compliance Officer and member of the Management Body).
Status: on 04/23/2019, UIF passed Resolution No. 41, whereby it imposed fines to responsibles. Against such resolution, the Bank, its Board of Directors and its Statutory audits filed a direct appeal on 06/12/2019, requesting a repeal of the penalty imposed. Such appeal is in process at CNACAF. The file was submitted to Courtroom V of CNACAF that received the proceedings on 06/21/2019. The direct appeal filed was notified to UIF on 12/3/2019. On 02/19/2020, the UIF answered the mentioned served and after that the file was passed to the Public Attorney. On 07/29/2020, the case file returned from the Public Prosecutor's Office to be analyzed by the court in order to issue a decision. On 05/11/2021, the Courtroom V of the CNACAF 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 06/16/2021, the CNACAF served the federal extraordinary appeal filed by the UIF for 10 days. On 07/15/2021, the answer to the extraordinary appeal filed by the UIF was incorporated. Consequently, the case was set for the agreement on August 6, 2021. As of the date of issuance of these condensed consolidated interim financial statements, is pending that the CNACAF issue a resolution about the admissibility of the extraordinary appeal.
File: No. 1208/2014 (UIF Resolution No. 13/2016) dated 1/15/2016.
Reason: alleged failure to comply with the Anti-Money Laundering Law, as amended, and UIF Resolution No. 121/11.
Persons subject to the summary proceedings: Banco Macro SA, Jorge Horacio Brito, Delfín Jorge Ezequiel Carballo, Juan Pablo Brito Devoto, Jorge Pablo Brito, Luis Carlos Cerolini, Alejandro Macfarlane, Carlos Enrique Videla, Guillermo Eduardo Stanley, Constanza Brito, Marcos Brito and Emmanuel Antonio Álvarez Agis.
- 54 -
NOTES TO THE CONDENSED CONSOLIDATED INTERIMFINANCIAL STATEMENTS
AS OF SEPTEMBER 30, 2021
(Translation of Financial statements originally issued in Spanish – See Note 43)
(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of September 30, 2021, unless otherwise expressly stated)
Status: on 05/17/2018 UIF passed resolution No. 13/2016, whereby it filed the summary proceedings related to observations over an overall inspection performed by BCRA. On 06/15/2018, the responsibles filed their defenses. On 7/2/2018, the UIF sustained the lack of capacity to be sued of Delfín Jorge Ezequiel Carballo, discarding his responsibility in this summary proceeding. The proceedings were opened to the production of evidence and closing of the evidence stage; on September 2018 the defendants lodged their memorial. On 01/08/2021 UIF filed Resolution No. 80 which imposed a fine to the Bank and the other responsibles. On 01/26/2021 through BCRA account, the fine was paid for an amount of 60. On 03/02/2021, against such resolution a direct appeal to CNACAF was deducted. The proceeding will be decided at Room IV of such jurisdiction. On 03/22/2021, it was notice the served of the direct appeal to UIF and as of the date it has not answered it. On 05/05/2021, the UIF become a party in the file and answered the served of the direct appeal imposed by the responsibles. On 05/05/2021, the CNACAF took it as an answered and noticed the proceedings to the General Attorney. On 07/02/2021, the General Attorney issued his decision through an opinion in which stated that there are not assumptions to move the power in related actions. On 08/12/2021, the CNACAF dismissed the direct appeal filed by the Bank. On 08/27/2021 a Federal extraordinary appeal against such decision was filed. On October 7, 2021, the CNACAF declared inadmissible the extraordinary appeal filed, where it was held that there was no federal grievance and no manifest arbitrariness in the resolution. As of the date of issuance of these condensed consolidated interim financial statements, work is being done to file a petition for denied extraordinary appeal.
File: No. 379/2015 (UIF Resolution No. 96/2019) dated 09/17/2019.
Reason: alleged failure to comply with the Anti-Money Laundering Law, as amended, and UIF Resolution No. 121/11.
Persons subject to the summary proceedings: Banco Macro SA, Jorge Horacio Brito, Delfín Jorge Ezequiel Carballo, Jorge Pablo Brito, Marcos Brito, Juan Pablo Brito Devoto, Carlos Enrique Videla, Alejandro Macfarlane, Guillermo Eduardo Stanley, Emanuel Antonio Alvarez Agis, Constanza Brito and Luis Carlos Cerolini.
Status: On 10/02/2019, Banco Macro SA and the individual responsables were passed of the initiation of the proceedings. On 10/31/2019, the Bank and the individuals subject to summary proceedings filed their defense. To date, the plea filed in relation to the statute of limitations has not been resolved yet, and no initial notification has been issued yet. On 01/07/2020, the party hearing the summary proceedings considered the defense filed and deferred the motion to dismiss for lack of capacity to be sued and statute of limitations upon issuing an opinion about the substance of the case. The administrative terms were suspended due to the social and preventive lockdown declared in the country due to Covid-19 pandemic (DNU 297/2020), until 11/29/2020, included. On 11/30/2020, terms were resumed (DNU 876/2020). On 03/02/2021, the passing of Mr. Jorge Horacio Brito was informed and was requested the ended of the related action. In addition, it was informed that under the BCRA summary named “File No. 100889/15 – Banco Macro SA financial summary No. 1496”, the resolution No. -2020-132-E-GDEBCRA-SEFYC#BCRA was issued and Banco Macro SA and the responsibles were penalized, emphasizing that the transactions for what the responsibles are under investigation, had been already penalized in the mentioned BCRA summary and therefore it is not possible that sanctions based on the same object coexist. On this basis, it was required the dismissal of the application of any penalty to the responsibles in this proceeding. On 04/22/2021, the Bank was informed that the exceptions will be decided in the final resolution, due to it will be included a statement into the file without analyzing the subject, waiting for such resolution. On 05/26/2021, it was informed the suspension of the administrative summary terms which are in process at UIF since 05/26/2021 up to 05/28/2021, included. On 08/18/2021, the proceedings were opened to the production of evidence and all the responsables involved were subpoenaed. As of the date of issuance of these condensed consolidated interim financial statements, the file is still in the produce-evidence stage.
Although the above described penalties do not involve material amounts, as of the date of issuance of these condensed consolidated interim financial statements, the total amount of monetary penalties received, pending payment due to any appeal lodged by the Bank, amounts to 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.
- 55 -
NOTES TO THE CONDENSED CONSOLIDATED INTERIMFINANCIAL STATEMENTS
AS OF SEPTEMBER 30, 2021
(Translation of Financial statements originally issued in Spanish – See Note 43)
(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of September 30, 2021, unless otherwise expressly stated)
| 35. | CORPORATE BONDS ISSUANCE |
|---|
The corporate bonds liabilities recorded by the Bank are as follows:
| Corporate Bonds | Original value | Residual face<br><br> value as of<br><br> 09/30/2021 | 12/31/2020 | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Subordinated Resettable – Class A | U$S 400,000,000 | (1 | ) | US 400,000,000 | 41,039,615 | 46,976,966 | |||
| Non-subordinated – Class B | $ | 4,620,570,000 | (2 | ) | $ | 2,889,191,000 | 2,538,119 | 3,329,205 | |
| Non-subordinated – Class C | $ | 3,207,500,000 | (3 | ) | 3,418,577 | ||||
| Total | 43,577,734 | 53,724,748 |
All values are in US Dollars.
| (1) | On April 26, 2016, the general regular shareholders’ meeting approved the creation of a Global<br>Program for the Issuance of Medium-Term Debt Securities, in accordance with the provisions of Law No. 23576, as amended and further<br>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<br>US dollars), or an equal amount in other currencies, under which it is possible to issue simple corporate bonds, not convertible into<br>shares in one or more classes. Also, on April 28, 2017, the General and Special Shareholder’ Meeting resolved to extend the<br>maximum amount of the abovementioned Global Program up to USD 1,500,000,000 (one thousand five hundred millions US dollars). |
|---|
On November 4, 2016, under the abovementioned Global Program, Banco Macro SA issued Subordinated Resettable Corporate Bonds, class A, at a fixed rate of 6.750% p.a. until reset date, fully amortizable upon maturity (November 4, 2026) for a face value of USD 400,000,000 (four hundred million US dollars), under the terms and conditions set forth in the pricing supplement dated October 21, 2016. Interest is paid semiannually on May 4 and November 4 of every year and the reset date was on November 4, 2021.
As of the date of issuance of these condensed consolidated interim financial statements, the reset rate was established up to maturity in 6.643% as a result of the benchmark reset rate plus 546.3 basis points, according to the abovementioned terms and conditions. Due to the Bank had not exercised the option to fully redeem the issuance as 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 redeem, not partially, and only for tax or regulatory purpose. The Bank used the funds derived from such issuance to grant loans in accordance with BCRA guidelines.
| (2) | On May 8, 2017, under the Global Program mentioned on item a.1), Banco Macro SA issued non-subordinated<br>simple corporate bonds Class B not convertible into shares, at a fixed rate of 17.50%, fully amortizable upon maturity (May 8,<br>2022) for a face value of pesos 4,620,570,000 equivalent to USD 300,000,000 (three hundred million US dollars), under the terms and conditions<br>set forth in the price supplement dated April 21, 2017. Interest is paid semiannually on November 8 and May 8 of every<br>year, beginning on November 8, 2017. |
|---|
In addition, the Bank may fully redeem the issuance for tax matters, but not partially. The Bank used the funds derived from such issuance to grant loans in accordance with BCRA guidelines.
On October 17, 2018 and October 16, 2019 the Board of Directors decided to pay off these corporate bonds for a face value of pesos 1,229,518,000 and pesos 501,861,000, respectively, equivalent to the amount of purchases made as those dates.
As of the date of issuance of these condensed consolidated interim financial statements the Bank made purchases of this issuance for a face value of pesos 511,495,000, with a remaining outstanding face value of pesos 2,377,696,000.
- 56 -
NOTES TO THE CONDENSED CONSOLIDATED INTERIMFINANCIAL STATEMENTS
AS OF SEPTEMBER 30, 2021
(Translation of Financial statements originally issued in Spanish – See Note 43)
(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of September 30, 2021, unless otherwise expressly stated)
| (3) | On April 9, 2018, under the Global Program mention on item a.1), Banco Macro SA issued non-subordinated<br>simple corporate bonds Class C, for a face value of pesos 3,207,500,000, at an annual variable rate equivalent to the sum of (i) Badlar<br>private rate applicable for the related accrued period; plus (ii) applicable margin of 3.5% p.a., fully amortizable upon maturity<br>(April 9, 2021). Interest will be paid quarterly for the periods due on July 9, October 9, January 9 and April 9<br>of every year, beginning on July 9, 2018. |
|---|
In addition, the Bank may fully redeem the issuance for tax matters, but not partially. The Bank used the funds derived from such issuance to grant loans in accordance with BCRA guidelines.
In addition, on October 16, 2019 and January 29, 2020, the Board of Directors decided to pay off these corporate bonds for a face value of pesos 750,500,000 and pesos 44,000,000, respectively.
On April 9, 2021, the Bank cancelled the total principal and interest for a face value of 2,413,000,000.
The Shareholder´s Meeting held on April 27, 2018, resolved to increase the maximum amount of the Global Program for the Issuance of Corporate Bonds for a face value from USD 1,500,000,000 to USD 2,500,000,000 or an equal amount in other currencies, as determinated by the Board of Directors in due time.
| 36. | OFF BALANCE SHEET TRANSACTIONS |
|---|
In addition to note 4, the Bank maintains different off balance sheet transactions, pursuant to the BCRA standards. Below are the amounts of the main off balance sheet transactions as of September 30, 2021 and December 31, 2020:
| Items | 09/30/2021 | 12/31/2020 | ||
|---|---|---|---|---|
| Custody of government and private securities and other assets held by third parties | 289,521,249 | 252,588,643 | ||
| Preferred and other collaterals received from customers (1) | 100,688,154 | 115,695,045 | ||
| Outstanding checks not yet paid | 10,928,325 | 10,321,367 | ||
| Checks already deposited and pending clearance | 8,236,800 | 5,230,242 | ||
| (1) | Related to collaterals used to secure loans transactions and other financing, under the applicable rules in<br>force in this matter. | |||
| --- | --- | |||
| 37. | TAX AND OTHER CLAIMS | |||
| --- | --- | |||
| 37.1. | 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 tax returns filed by former Banco Bansud SA (for the fiscal<br>years since June 30, 1995, through June 30, 1999, and of the irregular six-month period ended December 31, 1999) and by<br>former Banco Macro SA (for the fiscal years ended since December 31, 1998, through December 31, 2000). |
|---|
The matter under discussion that has not been resolved as yet and on which the regulatory agency bases its position is the impossibility of deducting credits that have collateral security, an issue that has been addressed by the Federal Administrative Tax Court and CSJN in similar cases, which have issued resolutions that are favorable to the Bank’s position.
- 57 -
NOTES TO THE CONDENSED CONSOLIDATED INTERIMFINANCIAL STATEMENTS
AS OF SEPTEMBER 30, 2021
(Translation of Financial statements originally issued in Spanish – See Note 43)
(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of September 30, 2021, unless otherwise expressly stated)
| b) | Afip’s ex officio undocumented expenses assessment for the periods February, April, May 2015<br>and since July 2015 up to January 2018, both included of date April 19, 2021. On October 5, 2021, the Bank filed an<br>appeal to the Federal Tax Court which is in process in the Courtroom B, Office 6, under the file 2021-96970075. |
|---|---|
| c) | Ex-officio turnover tax assessments in progress and/or adjustments, as a withholding agent and over municipal<br>fees, pending resolution by the tax authorities of certain jurisdictions. |
| --- | --- |
The Bank’s Management and its legal counsel consider no further significant accounting effects could arise from the final outcome of the above-mentioned proceedings other than those disclosed in these condensed consolidated interim financial statements.
| 37.2. | Other claims |
|---|
In addition, before merging with and into the Bank, Banco Privado de Inversiones SA (BPI) had a pending class action styled “Adecua v. Banco Privado de Inversiones on ordinary proceedings”, File No. 19073/2007, pending with Commercial Court No. 3 in and for the CABA, 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 CNACAF for continuing with the proceedings.
Moreover, the Bank is also subject to three class actions initiated by consumers’ associations for the same purpose, all of them currently pending with Commercial Court No. 7 in and for the CABA, Clerk’s Office No. 13: a) Adecua v, Banco Macro on ordinary proceedings, File No. 20495/2007; b) Damnificados Financieros Asociación Civil Para Su Defensa et al v, Banco Macro on summary proceedings, File No. 37729/2007; c) Unión de Usuarios y Consumidores v. Nuevo Banco Bisel on ordinary proceedings, File No. 44704/2008. Regarding the actions mentioned in a) and b), on February 1, 2021, an agreement was reached and filed for court-approval effects. On such agreement, the Bank assumed to reimburse to its clients and former clients under the agreement, the 75% (seventy five percent) of the difference between the premium collected for life insurance over the debt balance of several products, and the amount that results for applying 2.45 per thousand on the assured amounts for the period between May 2, 2004, and July 31, 2011, both included, plus interest at the current rate of Banco de la Nación Argentina until the final approval of the agreement. On March 16, 2021, the agreement was approved by the Court. On April 8, 2021, the Bank completed the first stage of the approved agreement, while the rest of it will be fulfilled between May and November 2021. During the last month, the remaining funds were transferred into a judicial account and the Bank’s obligations, generated on this agreement, were totally fulfilled.
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.
- 58 -
NOTES TO THE CONDENSED CONSOLIDATED INTERIMFINANCIAL STATEMENTS
AS OF SEPTEMBER 30, 2021
(Translation of Financial statements originally issued in Spanish – See Note 43)
(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of September 30, 2021, unless otherwise expressly stated)
Furthermore, in other case the Bank was challenged for charging credit card users until December 2014 a commission for “purchase limit excess” that consisted of a percentage over the purchase limit excess amount. It was styled “User and Consumer Union et. al v. Banco Macro SA on summary proceedings” [Unión de Usuarios y Consumidores y otro c/ Banco Macro SA s/ Sumarísimo], file No. 31958/2010, pending with Commercial Court No. 1 in and for the CABA, Clerk’s Office No 1. On 03/15/2019 a court order was passed against the Bank from a trial court that ordered the reimbursement for all the collected amounts plus VAT and interest. Although this court decision was appealed, the Entity understands that there is a low probability that a favorable ruling shall be obtained from the trial court, as the Entity became aware of that the Court of Appeals approved related actions against other two banks, an agreement was reached and filed for court-approval effects on 11/03/2020. On such agreement, the Bank compromised to reimburse to credit card users for the period from August 2007 to December 2014, the amounts collected over the abovementioned concepts plus VAT over such commissions and interest calculated at the average current rate for Documents transactions in force at the Banco de la Nación Argentina. On August 26, 2020, the agreement was approved by the judge. On October 28, 2020, the first stage of the agreement was fulfilled while the second stage will be fulfilled in the next 12 months. During November 2021, the Bank will transfer the remaining funds into a judicial account and its obligations, generated on this agreement, will be totally fulfilled.
The Bank’s Management and its legal counsel consider no further significant accounting effects could arise from the final outcome of the above-mentioned proceedings other than those disclosed in these condensed consolidated interim financial statements.
| 38. | RESTRICTION ON DIVIDENDS DISTRIBUTION |
|---|---|
| a) | According to BCRA regulations, 20% of Banco Macro SA income for the year, without including Other comprehensive<br>income, for the year plus/less prior-year adjustments and less accumulated losses as for the prior year-end, if any, should be allocated<br>to the legal retained earnings. |
| --- | --- |
| b) | Through Communiqué “A” 6464, the BCRA establishes the general procedure to distribute<br>earnings. According to that procedure, earnings may only be distributed if certain circumstances are met, such as no records of financial<br>assistance from the BCRA due to illiquidity or shortages in payments of minimum capital or minimum cash requirement deficiencies and not<br>being subject to the provisions of sections 34 and 35 bis of the Financial Entities Law (sections dealing with tax payment and restructuring<br>agreements and reorganization of the Bank), among other conditions listed in the abovementioned communiqué that must be met. In<br>addition, as established by BCRA Communiqué “A” 6886, the earnings distribution approved by the Shareholders’<br>Meeting of the Bank could only be formalized once the Superintendence of Financial and Foreign Exchange Institutions assesses the potential<br>effects of the application of IFRS according to Communiqué “A” 6430 (section 5.5 IFRS 9 “Impairment”),<br>the reduction of the lower loss allowances and a higher computable equity (RPC, for its acronym in Spanish) as a consequence of the application<br>of Communiqué “A” 6946 section 2, as amended, for payroll financing to microenterprises and the restatement of financial<br>statements according to Communiqué “A” 6651 in accordance with accounting standards established by Communiqué<br> “A” 6847 and the guidelines to apply the restatement procedures established by Communiqué “A” 6849. |
| --- | --- |
In addition, profits may only be distributed to the extent that the financial institution has positive results, after deducting, on a non-accounting basis, from retained earnings and the optional reserves for the future distribution of profits, (i) the amounts of the legal and other earnings reserves which are mandatory, (ii) all debit amounts of each one of the accounting items recognized in “Other Comprehensive Income”, (iii) income from of the revaluation of property, plant and equipment, intangible assets and investment property, (iv) the positive net difference between the amortized cost and the fair value of government debt instruments and/or monetary regulation instruments issued by the BCRA for those instruments recognized at amortized cost, (v) the adjustments identified by the 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. Additionally, no profit distributions shall be made out of the profit originated as a result of the first-time application of the IFRS, which was created a special reserve, and its balance as of September 30, 2021 was 9,969,216 (nominal value: 3,475,669).
- 59 -
NOTES TO THE CONDENSED CONSOLIDATED INTERIMFINANCIAL STATEMENTS
AS OF SEPTEMBER 30, 2021
(Translation of Financial statements originally issued in Spanish – See Note 43)
(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of September 30, 2021, unless otherwise expressly stated)
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).
In addition, through Communiqué “A” 7312, the BCRA established the suspension of earning distribution of financial entities up to December 31, 2021.
| c) | Pursuant to CNV General Resolution No. 622, the Shareholders’ Meeting in charge of analyzing<br>the annual financial statements will be required to decide on the application of the Bank’s retained earnings, such as the actual<br>distribution of dividends, the capitalization thereof through the delivery of bonus shares, the creation of earnings reserves additional<br>to the Legal earnings retained or a combination of any of these applications. |
|---|
In compliance with the abovementioned the General regular and Extraordinary Shareholders’ Meeting of Banco Macro SA held on April 30, 2021 and taking into account that at the end of the fiscal year ended December 31, 2020, the Bank had negative unappropriated retained earnings for 50,602,847 and personal property tax on business corporation for 311,944, decided to apply them as follows (figures stated in terms of purchasing power as of December 31, 2020):
a) 30,268,993 to the net income for the fiscal year 2020;
b) 442 to the voluntary reserve; and
c) 20,645,356 to the voluntary reserve for future distributions of earnings.
In addition, the abovementioned Shareholders’ Meeting resolved to distribute cash dividends which is described in note 28.
| 39. | CAPITAL MANAGEMENT, CORPORATE GOVERNANCE TRANSPARENCY POLICY AND RISK MANAGEMENT |
|---|
As financial institution, Banco Macro SA is governed by the Financial Entities Law No. 21526, as supplemented, and the regulations issued by the BCRA and, is exposed to intrinsic risks related to the financial industry. Moreover, the Bank adheres to the good banking practices laid out in BCRA Communiqué “A” 5201 (Financial Entities Corporate Governance Guidelines). Detailed explanations about the main aspects related to capital management, corporate governance transparency policy and risk management related to the Bank, are disclosed in note 41 to the consolidated financial statements as of December 31, 2020, already issued.
Additionally, the table below shows the minimum capital requirements measured on a consolidated basis, effective for the month of September 2021, together with the integration thereof (computable equity) as of the end of such month:
| Item | 09/30/2021 | |
|---|---|---|
| Minimum capital requirements | 51,351,594 | |
| Computable equity | 234,011,650 | |
| Capital surplus | 182,660,056 | |
| 40. | CHANGES IN THE ARGENTINE MACROECONOMIC ENVIRONMENT AND FINANCIAL AND CAPITAL MARKETS | |
| --- | --- |
During the second half of 2019, in a political context of federal general elections which gave rise to a change in the federal authorities, a significant volatile period began for the market values of government and private financial instrument and a process of rescheduling maturities and swaps of certain government debt instruments started. In addition, material increases were observed in the country risk and in the exchange rate between the Argentinian peso and US dollar.
- 60 -
NOTES TO THE CONDENSED CONSOLIDATED INTERIMFINANCIAL STATEMENTS
AS OF SEPTEMBER 30, 2021
(Translation of Financial statements originally issued in Spanish – See Note 43)
(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of September 30, 2021, unless otherwise expressly stated)
During 2020, among other regulations, relevant modifications to the tax regulation system were introduced, including changes in the income tax, withholdings related to foreign exchange transactions and for the acquisition of foreign currency for hoarding purposes, and were also established material restrictions to the exchange market access.
At the same time, the government’s debt restructuring process continued under domestic and foreign legislation which includes the undergoing negotiation with the International Monetary Funds.
Particularly, regarding to the price of Us dollar, since the end of 2019, the gap between the official price of the US dollar -used mainly for foreign trade- and the alternative values that arise through the stock market operation and also with respect to the unofficial value, began to widen around 100% as of the date of issuance of these condensed consolidated interim financial statements.
Although, at the end of issuance of these condensed consolidated interim financial statements certain volatility levels abovementioned have been decreased, the local and international macroeconomic context generates certain degree of uncertainty regarding its future progress, and also considering the effect mentioned in note 41, mainly related to the level of the global economic recovery.
Therefore, the Bank’s Management permanently monitors any changes in the abovementioned situations in international and local markets, to determine the possible actions to adopt and to identify the possible impact on its financial situation that may need to be reflected in the future financial statements.
| 41. | EFFECTS OF THE CORONAVIRUS (COVID-19) OUTBREAK |
|---|
In early March 2020, the World Health Organization recognized Coronavirus (Covid-19) as a pandemic. This emergency situation over public health was worldwide expanded and several countries have taken different measures to contain the effects. This situation and the measures adopted have materially affected the international economy activity with different impacts on several countries and business lines.
Particularly in the Argentine Republic, on March 19, 2020, through Decree No. 297/2020, the Government established the "social, preventive and compulsory isolation".
Along with health protection rules, tax and financial measures were taken to mitigate the impact on the economy associated with the pandemic, including public direct financial assistance measures for part of the population, the establishment of financial and fiscal facilities for both individuals and companies. As regards measures related to the financial institutions, the BCRA established maturities extensions, froze the mortgage loan installments and encouraged banks to lend to companies at reduced rates. In addition, as explained in note 28, the distribution of dividends of the finance institutions was suspended until December 31, 2021.
The Bank is developing its activities under the conditions detailed above, giving priority to the compliance of social distancing measures by its employees, with the primary objective of taking care of the public health and well-being of all its stakeholders (employees, suppliers, customers, among others). To this end, it has put in place contingency procedures and has enabled its staff to carry out their tasks remotely.
From a commercial point of view, it has emphasized maintaining a close relationship with its customers, trying to respond to their needs at this difficult time, sustaining all virtual channels of care to ensure operability and a good response to requirements, monitoring compliance with their business obligations and monitoring the active portfolio in order to detect possible delays in collection and set new conditions for them.
As of the date of issuance of these condensed consolidated interim financial statements, certain health control measures continue to be effective. However, social, commercial and professional activities started to be performed with less restrictions, but subject to controls and protocols and with limited capacity of people, while restrictions in public transport were eliminated.
Considering the size of the abovementioned situation, the Bank's Management estimates that this situation could have an impact on its operations and the financial situation and the profit or loss of the Bank, which are under analysis, and will ultimately depend on the extent and duration of the health emergency and the success of the measures taken and taken in the future.
- 61 -
NOTES TO THE CONDENSED CONSOLIDATED INTERIMFINANCIAL STATEMENTS
AS OF SEPTEMBER 30, 2021
(Translation of Financial statements originally issued in Spanish – See Note 43)
(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of September 30, 2021, unless otherwise expressly stated)
| 42. | 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.
| 43. | ACCOUNTING PRINCIPLES – EXPLANATION ADDED FOR TRANSLATION INTO ENGLISH |
|---|
These condensed consolidated interim financial statements are presented in accordance with the accounting framework established by the BCRA, as mentioned in note 3. These accounting standards may not conform with accounting principles generally accepted in other countries.
| - 62 - | Delfín Jorge Ezequiel Carballo<br> Chairman |
| --- | --- | | EXHIBIT B | | --- | | CONSOLIDATED CLASSIFICATION OF LOANS AND OTHER FINANCING | | --- | | BY SITUATION AND COLLATERAL RECEIVED | | AS OF SEPTEMBER 30, 2021 AND DECEMBER 31, 2020 | | (Translation of the Financial statements originally issued in Spanish – See Note 43) | | (Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of September 30, 2021, except that indicated otherwise) | | COMMERCIAL | 09/30/2021 | | 12/31/2020 | | | --- | --- | --- | --- | --- | | In normal situation | | 79,603,236 | | 99,658,871 | | With senior “A” collateral and counter-collateral | | 9,392,502 | | 4,645,132 | | With senior “B” collateral and counter-collateral | | 15,012,839 | | 13,286,243 | | Without senior collateral or counter-collateral | | 55,197,895 | | 81,727,496 | | Subject to special monitoring | | 2,594,843 | | 4,105,650 | | In observation | | | | | | With senior “A” collateral and counter-collateral | | 3,290 | | 463 | | With senior “B” collateral and counter-collateral | | 2,275,589 | | 2,917,523 | | Without senior collateral or counter-collateral | | 315,964 | | 835,557 | | In negotiation or with financing agreements | | | | | | With senior “B” collateral and counter-collateral | | | | 186,374 | | Without senior collateral or counter-collateral | | | | 165,733 | | Troubled | | 266,164 | | 112,926 | | With senior “B” collateral and counter-collateral | | 106,471 | | | | Without senior collateral or counter-collateral | | 159,693 | | 112,926 | | With high risk of insolvency | | 105,708 | | 116,635 | | With senior “B” collateral and counter-collateral | | 90,767 | | 107,153 | | Without senior collateral or counter-collateral | | 14,941 | | 9,482 | | Irrecoverable | | 96,674 | | 714,736 | | With senior “A” collateral and counter-collateral | | 62,305 | | 72,722 | | With senior “B” collateral and counter-collateral | | 34,351 | | 582,131 | | Without senior collateral or counter-collateral | | 18 | | 59,883 | | Subtotal Commercial | | 82,666,625 | | 104,708,818 |
| - 63 - | Delfín Jorge Ezequiel Carballo<br> Chairperson |
| --- | --- | | EXHIBIT B | | --- | | (Continued) | | CONSOLIDATED CLASSIFICATION OF LOANS AND OTHER FINANCING | | --- | | BY SITUATION AND COLLATERAL RECEIVED | | AS OF SEPTEMBER 30, 2021 AND DECEMBER 31, 2020 | | (Translation of the Financial statements originally issued in Spanish – See Note 43) | | (Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of September 30, 2021, except that indicated otherwise) | | CONSUMER AND MORTGAGE | 09/30/2021 | | 12/31/2020 | | | --- | --- | --- | --- | --- | | Performing | | 232,600,495 | | 263,585,721 | | With senior “A” collateral and counter-collateral | | 16,907,594 | | 26,819,643 | | With senior “B” collateral and counter-collateral | | 20,425,345 | | 22,411,162 | | Without senior collateral or counter-collateral | | 195,267,556 | | 214,354,916 | | Low risk | | 1,997,476 | | 101,880 | | With senior “A” collateral and counter-collateral | | 43,438 | | 6,855 | | With senior “B” collateral and counter-collateral | | 172,078 | | 75 | | Without senior collateral or counter-collateral | | 1,781,960 | | 94,950 | | Low risk - in special treatment | | 30,210 | | 14,433 | | With senior “A” collateral and counter-collateral | | | | | | With senior “B” collateral and counter-collateral | | 12,403 | | | | Without senior collateral or counter-collateral | | 17,807 | | 14,433 | | Medium risk | | 2,202,011 | | 294,084 | | With senior “A” collateral and counter-collateral | | 90,604 | | 6,217 | | With senior “B” collateral and counter-collateral | | 124,704 | | 41,122 | | Without senior collateral or counter-collateral | | 1,986,703 | | 246,745 | | High risk | | 2,107,060 | | 512,622 | | With senior “A” collateral and counter-collateral | | 86,673 | | 28,675 | | With senior “B” collateral and counter-collateral | | 98,504 | | 64,832 | | Without senior collateral or counter-collateral | | 1,921,883 | | 419,115 | | Irrecoverable | | 594,672 | | 1,123,065 | | With senior “A” collateral and counter-collateral | | 3,081 | | 15,379 | | With senior “B” collateral and counter-collateral | | 181,301 | | 328,439 | | Without senior collateral or counter-collateral | | 410,290 | | 779,247 | | Subtotal consumer and mortgage | | 239,531,924 | | 265,631,805 | | Total | | 322,198,549 | | 370,340,623 |
| - 64 - | Delfín Jorge Ezequiel Carballo<br> Chairperson |
| --- | --- | | EXHIBIT B | | --- | | (Continued) | | CONSOLIDATED CLASSIFICATION OF LOANS AND OTHER FINANCING | | --- | | BY SITUATION AND COLLATERAL RECEIVED | | AS OF SEPTEMBER 30, 2021 AND DECEMBER 31, 2020 | | (Translation of the Financial statements originally issued in Spanish – See Note 43) | | (Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of September 30, 2021, except that indicated otherwise) |
This exhibit discloses the contractual figures as established by the BCRA. The conciliation with the condensed consolidated interim statement of financial position is listed.
| 09/30/2021 | 12/31/2020 | |||||
|---|---|---|---|---|---|---|
| Loans and other financing | 309,921,930 | 352,429,316 | ||||
| Added: | ||||||
| Allowances for loans and other financing | 9,153,429 | 13,726,752 | ||||
| Adjustment amortized cost and fair value | 350,853 | 185,005 | ||||
| Debt securities of financial trust - Measured at amortized cost | 253,198 | 228,297 | ||||
| Corporate bonds | 129,888 | 500,363 | ||||
| Subtract: | ||||||
| Interest and other accrued items receivable from financial assets with impaired credit value | (114,244 | ) | (79,851 | ) | ||
| Guarantees provided and contingent liabilities | 2,503,495 | 3,350,741 | ||||
| Total computable items | 322,198,549 | 370,340,623 |
| - 65 - | Delfín Jorge Ezequiel Carballo<br> Chairperson |
| --- | --- |
EXHIBIT C
CONSOLIDATED CONCENTRATION OF LOANS AND FINANCING FACILITIES
AS OF SEPTEMBER 30, 2021 AND DECEMBER 31, 2020
(Translation of the Financial statements originally issued in Spanish – See Note 43)
(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of September 30, 2021, except that indicated otherwise)
| 09/30/2021 | 12/31/2020 | |||||||
|---|---|---|---|---|---|---|---|---|
| Number of customers | Cut off <br><br>balance | % of total<br><br> portfolio | Cut off <br><br>balance | % of total<br><br> portfolio | ||||
| 10 largest customers | 18,574,135 | 5.76 | 41,367,628 | 11.17 | ||||
| 50 next largest customers | 29,158,406 | 9.05 | 32,198,025 | 8.69 | ||||
| 100 next largest customers | 20,697,940 | 6.42 | 18,704,220 | 5.05 | ||||
| Other customers | 253,768,068 | 78.77 | 278,070,750 | 75.09 | ||||
| Total (1) | 322,198,549 | 100.00 | 370,340,623 | 100.00 |
(1) See reconciliation in Exhibit B
| - 66 - | Delfín Jorge Ezequiel Carballo<br> Chairperson |
| --- | --- |
EXHIBIT D
CONSOLIDATED BREAKDOWN OF LOANS AND OTHER FINANCING BY TERM
AS OF SEPTEMBER 30, 2021
(Translation of the Financial statements originally issued in Spanish – See Note 43)
(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of September 30, 2021, except that indicated otherwise)
| Remaining<br> terms to maturity | ||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Item | Matured | Up<br> to 1<br><br> month | Over<br> 1 <br><br>month and<br><br> up to 3<br><br> months | Over<br> 3<br><br> months and<br><br> up to 6<br><br> months | Over<br> 6<br><br> months and<br><br> up to 12<br><br> months | Over<br> 12<br><br> months and<br><br> up to 24<br><br> months | Over<br> 24<br><br> months | Total | ||||||||
| Non-financial government<br> sector | 252,353 | 652,813 | 540,961 | 921,400 | 1,273,978 | 3,641,505 | ||||||||||
| Financial sector | 193,347 | 131,465 | 918,601 | 90,193 | 746,879 | 195,698 | 2,276,183 | |||||||||
| Non-financial<br> private sector and foreign residents | 2,187,386 | 114,631,115 | 35,211,346 | 43,453,304 | 57,032,862 | 66,112,119 | 100,752,326 | 419,380,458 | ||||||||
| Total | 2,187,386 | 115,076,815 | 35,995,624 | 44,912,866 | 58,044,455 | 68,132,976 | 100,948,024 | 425,298,146 |
CONSOLIDATED BREAKDOWNOF LOANS AND OTHER FINANCING BY TERM
AS OF DECEMBER 31, 2020
(Translation of the Financial statements originally issued in Spanish – See Note 43)
(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of September 30, 2021, except that indicated otherwise)
| Remaining<br> terms to maturity | ||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Item | Matured | Up<br> to 1 <br><br>month | Over<br> 1 <br><br>month and <br><br>up to 3<br><br> months | Over<br> 3<br><br> months and<br><br> up to 6<br><br> months | Over<br> 6<br><br> months and<br><br> up to 12<br><br> months | Over<br> 12<br><br> months and<br><br> up to 24<br><br> months | Over<br> 24<br><br> months | Total | ||||||||
| Non-financial government<br> sector | 328,785 | 972,112 | 989,006 | 1,784,152 | 3,068,145 | 650,804 | 7,793,004 | |||||||||
| Financial sector | 100,204 | 501,413 | 742,980 | 460,498 | 1,377,402 | 3,182,497 | ||||||||||
| Non-financial<br> private sector and foreign residents | 1,793,671 | 129,515,505 | 42,118,681 | 57,445,150 | 67,807,857 | 64,462,499 | 104,898,703 | 468,042,066 | ||||||||
| Total | 1,793,671 | 129,944,494 | 43,592,206 | 59,177,136 | 70,052,507 | 68,908,046 | 105,549,507 | 479,017,567 |
This exhibit discloses the contractual future cash flows that include interest and charges to be accrued until maturity of the contracts.
| - 67 - | Delfín Jorge Ezequiel Carballo<br> Chairperson |
| --- | --- |
EXHIBIT F
CONSOLIDATED CHANGE OF PROPERTY, PLANT AND EQUIPMENT
AS OF SEPTEMBER 30, 2021
(Translation of the Financial statements originally issued in Spanish – See Note 43)
(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of September 30, 2021, except that indicated otherwise)
| Original<br><br> value at<br><br> beginning | Total<br> life | Depreciation<br> of the period | Residual<br><br> value at <br><br> the end | ||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Item | of<br> fiscal<br><br> year | estimated<br><br> in years | Increases | Decreases | Transfers<br><br> (1) | Accumulated | Transfers<br><br> (1) | Decrease | Of<br> the<br><br> period | At<br> the<br><br> end | of<br> the <br><br> period | ||||||||||||
| Cost | |||||||||||||||||||||||
| Real property | 41,737,692 | 50 | 242,702 | 1,042,115 | 3,418,073 | 92,002 | 649,703 | 4,159,778 | 38,862,731 | ||||||||||||||
| Furniture and facilities | 5,438,746 | 10 | 113,024 | 1,741 | 216,072 | 2,447,140 | 121 | 868 | 381,521 | 2,827,914 | 2,938,187 | ||||||||||||
| Machinery and equipment | 7,521,830 | 5 | 406,088 | 28,148 | 135,295 | 4,731,983 | (605 | ) | 4,411 | 873,970 | 5,600,937 | 2,434,128 | |||||||||||
| Vehicles | 1,168,270 | 5 | 98,031 | 66,907 | 2,919 | 956,199 | 162 | 57,927 | 75,865 | 974,299 | 228,014 | ||||||||||||
| Other | 1,207 | 276 | 558 | 309 | 867 | 616 | |||||||||||||||||
| Work in progress | 1,148,417 | 1,619,122 | (676,377 | ) | 2,091,162 | ||||||||||||||||||
| Right of<br> use real property | 2,843,361 | 5 | 508,082 | 23,096 | 14,570 | 1,233,819 | 663 | 19,361 | 530,660 | 1,745,781 | 1,597,136 | ||||||||||||
| Total<br> property, plant and equipment | 59,859,523 | 2,987,325 | 119,892 | 734,594 | 12,787,772 | 92,343 | 82,567 | 2,512,028 | 15,309,576 | 48,151,974 |
CONSOLIDATED CHANGE OF PROPERTY, PLANT AND EQUIPMENT
AS OF DECEMBER 31, 2020
(Translation of the Financial statements originally issued in Spanish – See Note 43)
(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of September 30, 2021, except that indicated otherwise)
| Original<br><br> value at<br><br> beginning | Total<br> life | Depreciation<br> for the fiscal year | Residual<br><br> value at <br><br> the end | ||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Item | of<br> fiscal<br><br> year | estimated<br><br> in years | Increases | Decreases | Transfers | Accumulated | Transfers | Decrease | For<br> the<br><br> fiscal year | At<br> the <br><br> end | of<br> the<br><br> fiscal year | ||||||||||||
| Cost | |||||||||||||||||||||||
| Real property | 40,843,538 | 50 | 263,433 | 630,721 | 2,588,504 | (16,658 | ) | 846,227 | 3,418,073 | 38,319,619 | |||||||||||||
| Furniture and facilities | 5,043,958 | 10 | 118,889 | 27,856 | 303,755 | 1,965,544 | 192 | 25,279 | 506,683 | 2,447,140 | 2,991,606 | ||||||||||||
| Machinery and equipment | 6,658,530 | 5 | 680,959 | 201 | 182,542 | 3,539,377 | 130 | 1,151 | 1,193,627 | 4,731,983 | 2,789,847 | ||||||||||||
| Vehicles | 1,147,678 | 5 | 110,729 | 90,137 | 937,344 | 84,235 | 103,090 | 956,199 | 212,071 | ||||||||||||||
| Other | 3,653 | 38 | 3,627 | 3,098 | 29 | 558 | 649 | ||||||||||||||||
| Work in progress | 1,628,725 | 634,757 | (1,115,065 | ) | 1,148,417 | ||||||||||||||||||
| Right of<br> use real property | 2,280,757 | 5 | 723,823 | 161,219 | 564,747 | 46,101 | 715,173 | 1,233,819 | 1,609,542 | ||||||||||||||
| Total<br> property, plant and equipment | 57,606,839 | 2,532,628 | 281,897 | 1,953 | 9,599,143 | (16,336 | ) | 159,864 | 3,364,829 | 12,787,772 | 47,071,751 | ||||||||||||
| (1) | During the fiscal year 2021, this item<br> observed transfers to Non-current assets held for sale. | ||||||||||||||||||||||
| --- | --- |
| - 68 - | Delfín Jorge Ezequiel Carballo<br> Chairperson |
| --- | --- |
EXHIBIT F
(Continued)
CONSOLIDATED CHANGE IN INVESTMENT PROPERTY
AS OF SEPTEMBER 30, 2021
(Translation of the Financial statements originally issued in Spanish – See Note 43)
(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of September 30, 2021, except that indicated otherwise)
| Original<br><br><br> Value at<br><br> beginning | Useful<br><br><br> life | Depreciation<br> of the period | Residual<br><br>value at <br><br>the end | ||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Item | of<br> fiscal<br><br> year | estimated<br> <br><br>in years | Increases | Decreases | Transfers | Accumulated | Transfers | Decrease | Of<br> the<br><br> period | At<br> the<br><br> end | of<br> the<br><br> period | ||||||||||||
| Cost | |||||||||||||||||||||||
| Rented<br> properties | 301,607 | 50 | (92,000 | ) | 49,517 | (45,010 | ) | 2,451 | 6,958 | 202,649 | |||||||||||||
| Other<br> investment properties | 1,159,873 | 50 | 115,347 | 21,157 | (634,782 | ) | 69,534 | (46,991 | ) | 3,523 | 14,600 | 33,620 | 585,661 | ||||||||||
| Total<br> investment property | 1,461,480 | 115,347 | 21,157 | (726,782 | ) | 119,051 | (92,001 | ) | 3,523 | 17,051 | 40,578 | 788,310 |
CONSOLIDATED CHANGE IN INVESTMENT PROPERTY
AS OF DECEMBER 31, 2020
(Translation of the Financial statements originally issued in Spanish – See Note 43)
(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of September 30, 2021, except that indicated otherwise)
| Original<br><br> Value at<br><br> beginning | Useful<br><br> life | Depreciation<br> for the fiscal year | Residual<br><br> value at <br><br> the end | |||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Item | of<br> fiscal<br><br> year | estimated<br> <br><br> in years | Increases | Decreases | Transfers<br><br> (1) | Accumulated | Transfers<br> <br><br> (1) | Decrease | For<br> the<br><br> fiscal year | At<br> the<br><br> end | of<br> the <br> fiscal year | |||||||||||
| Cost | ||||||||||||||||||||||
| Rented<br> properties | 301,606 | 50 | 2 | (1 | ) | 46,146 | 1 | 3,370 | 49,517 | 252,090 | ||||||||||||
| Other<br> investment properties | 1,149,056 | 50 | 96,023 | 58 | (85,148 | ) | 53,187 | 150 | 7 | 16,204 | 69,534 | 1,090,339 | ||||||||||
| Total<br> investment property | 1,450,662 | 96,025 | 58 | (85,149 | ) | 99,333 | 151 | 7 | 19,574 | 119,051 | 1,342,429 | |||||||||||
| (1) | During the fiscal year 2020, this item<br> observed transfers from/ to property, plant and equipment. | |||||||||||||||||||||
| --- | --- |
| - 69 - | Delfín Jorge Ezequiel Carballo<br> Chairperson |
| --- | --- |
EXHIBIT G
CONSOLIDATED CHANGE IN INTANGIBLE ASSETS
AS OF SEPTEMBER 30, 2021
(Translation of the Financial statements originally issued in Spanish – See Note 43)
(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of September 30, 2021, except that indicated otherwise)
| Original<br><br> Value at<br><br> beginning | Useful<br><br> life | Depreciation<br> of the period | Residual<br><br> value at <br><br> the end | ||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Item | of<br> fiscal<br><br> year | estimated<br> <br><br> in years | Increases | Decreases | Transfers | Accumulated | Transfers | Decrease | Of<br> the<br><br> period | At<br> the<br><br> end | of<br> the<br><br> period | ||||||||||
| Cost | |||||||||||||||||||||
| Licenses | 3,765,635 | 5 | 780,790 | (10,354 | ) | 1,953,453 | (342 | ) | 618,480 | 2,571,591 | 1,964,480 | ||||||||||
| Other<br> intangible assets | 11,819,417 | 5 | 2,038,980 | 6,641,185 | 1,638,783 | 8,279,968 | 5,578,429 | ||||||||||||||
| Total<br> intangible assets | 15,585,052 | 2,819,770 | (10,354 | ) | 8,594,638 | (342 | ) | 2,257,263 | 10,851,559 | 7,542,909 |
CONSOLIDATED CHANGE IN INTANGIBLE ASSETS
AS OF DECEMBER 31, 2020
(Translation of the Financial statements originally issued in Spanish – See Note 43)
(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of September 30, 2021, except that indicated otherwise)
| Original<br><br> Value at<br><br> beginning | Useful <br><br>life | Depreciation<br> for the fiscal year | Residual<br><br> value at <br><br> the end | ||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Item | of<br> fiscal<br><br> year | estimated<br> <br><br> in years | Increases | Decreases | Transfers | Accumulated | Transfers | Decrease | For<br> the<br> fiscal year | At<br> the<br><br> end | of<br> the<br> fiscal year | ||||||||||||
| Cost | |||||||||||||||||||||||
| Licenses | 3,046,987 | 5 | 718,653 | (5 | ) | 1,249,027 | (4 | ) | 704,430 | 1,953,453 | 1,812,182 | ||||||||||||
| Other<br> intangible assets | 9,508,636 | 5 | 2,312,415 | 1,631 | (3 | ) | 4,702,238 | (3 | ) | 1,631 | 1,940,581 | 6,641,185 | 5,178,232 | ||||||||||
| Total<br> intangible assets | 12,555,623 | 3,031,068 | 1,631 | (8 | ) | 5,951,265 | (7 | ) | 1,631 | 2,645,011 | 8,594,638 | 6,990,414 |
| - 70 - | Delfín Jorge Ezequiel Carballo<br> Chairperson |
| --- | --- |
EXHIBIT H
| CONSOLIDATED DEPOSIT CONCENTRATION | ||||||||
|---|---|---|---|---|---|---|---|---|
| AS OF SEPTEMBER 30, 2021 AND DECEMBER 31, 2020 | ||||||||
| (Translation of the Financial statements originally issued in Spanish – See Note 43) | ||||||||
| (Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of September 30, 2021, except that indicated otherwise) | ||||||||
| 09/30/2021 | 12/31/2020 | |||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Number of customers | Outstanding balance | % of total portfolio | Outstanding balance | % of total<br> <br>portfolio | ||||
| 10 largest customers | 39,519,306 | 7.29 | 128,193,230 | 19.15 | ||||
| 50 next largest customers | 34,234,187 | 6.31 | 63,115,445 | 9.43 | ||||
| 100 next largest customers | 22,916,312 | 4.23 | 28,626,788 | 4.28 | ||||
| Other customers | 445,484,536 | 82.17 | 449,434,566 | 67.14 | ||||
| Total | 542,154,341 | 100.00 | 669,370,029 | 100.00 |
| - 71 - | Delfín Jorge Ezequiel Carballo<br> Chairperson |
| --- | --- |
EXHIBIT I
| CONSOLIDATED BREAKDOWN OF FINANCIAL LIABILITIES | ||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| FOR RESIDUAL TERMS | ||||||||||||||
| AS OF SEPTEMBER 30, 2021 | ||||||||||||||
| (Translation of the Financial statements originally issued in Spanish – See Note 43) | ||||||||||||||
| (Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of September 30, 2021, except that indicated otherwise) | ||||||||||||||
| Remaining terms to maturity | ||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Item | Up to 1<br> month | Over 1<br> month and<br> up to 3<br> months | Over 3<br> months<br> and up to<br> 6 months | Over 6<br> months<br> and up to<br> 12 months | Over 12<br> months<br> and up to<br> 24 months | Over 24<br> months | Total | |||||||
| Deposits | 481,976,225 | 57,742,528 | 6,386,854 | 981,081 | 13,246 | 1,600 | 547,101,534 | |||||||
| From the non-financial government sector | 50,247,600 | 3,498,678 | 580,635 | 2,504 | 54,329,417 | |||||||||
| From the financial sector | 829,782 | 829,782 | ||||||||||||
| From the non-financial private sector and foreign residents | 430,898,843 | 54,243,850 | 5,806,219 | 978,577 | 13,246 | 1,600 | 491,942,335 | |||||||
| Liabilities at fair value through profit or loss | 2,220,152 | 2,220,152 | ||||||||||||
| Derivative instruments | 2,440 | 2,440 | ||||||||||||
| Repo transactions | 1,810,254 | 1,810,254 | ||||||||||||
| Other financial institutions | 1,810,254 | 1,810,254 | ||||||||||||
| Other Financial Liabilities | 45,137,690 | 173,822 | 156,658 | 249,656 | 370,346 | 525,794 | 46,613,966 | |||||||
| Financing received from the Central Bank of Argentina and other financial institutions | 167,294 | 243,355 | 172,250 | 17,891 | 9,670 | 610,460 | ||||||||
| Issued corporate bonds | 252,804 | 2,543,451 | 2,796,255 | |||||||||||
| Subordinated corporate bonds | 1,332,923 | 1,465,820 | 2,931,640 | 49,754,740 | 55,485,123 | |||||||||
| Total | 531,314,055 | 59,745,432 | 6,715,762 | 5,257,899 | 3,324,902 | 50,282,134 | 656,640,184 |
This exhibit discloses contractual future cash flows that include interests and accessories to be accrued until maturity of the contracts.
| - 72 - | Delfín Jorge Ezequiel Carballo<br> Chairperson |
| --- | --- |
EXHIBIT I
(Continued)
| CONSOLIDATED BREAKDOWN OF FINANCIAL LIABILITIES | ||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| FOR RESIDUAL TERMS | ||||||||||||||
| AS OF DECEMBER 31, 2020 | ||||||||||||||
| (Translation of the Financial statements originally issued in Spanish – See Note 43) | ||||||||||||||
| (Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of September 30, 2021, except that indicated otherwise) | ||||||||||||||
| Remaining terms to maturity | ||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Item | Up to 1 month | Over 1 <br>month and <br>up to 3 <br>months | Over 3 <br>months and <br>up to 6 <br>months | Over 6 <br>months and <br>up to 12 <br>months | Over 12 <br>months and <br>up to 24 <br>months | Over 24 <br>months | Total | |||||||
| Deposits | 602,477,822 | 61,696,373 | 7,644,603 | 4,143,548 | 47,671 | 2,995 | 676,013,012 | |||||||
| From the non-financial government sector | 92,957,864 | 7,613,455 | 1,235,325 | 2,914 | 101,809,558 | |||||||||
| From the financial sector | 953,796 | 953,796 | ||||||||||||
| From the non-financial private sector and foreign residents | 508,566,162 | 54,082,918 | 6,409,278 | 4,140,634 | 47,671 | 2,995 | 573,249,658 | |||||||
| Derivative instruments | 58 | 257 | 315 | |||||||||||
| Repo transactions | 849,672 | 849,672 | ||||||||||||
| Other financial institutions | 849,672 | 849,672 | ||||||||||||
| Other Financial Liabilities | 65,570,535 | 183,077 | 172,353 | 434,429 | 362,377 | 704,449 | 67,427,220 | |||||||
| Financing received from the Central Bank of Argentina and other financial institutions | 574,458 | 273,191 | 279,496 | 110,529 | 54,911 | 7,839 | 1,300,424 | |||||||
| Issued corporate bonds | 286,716 | 3,782,912 | 284,938 | 3,541,381 | 7,895,947 | |||||||||
| Subordinated corporate bonds | 1,555,783 | 1,555,785 | 3,421,802 | 59,784,506 | 66,317,876 | |||||||||
| Total | 669,759,261 | 62,152,898 | 13,435,147 | 6,529,229 | 7,428,142 | 60,499,789 | 819,804,466 |
This exhibit discloses contractual future cash flows that include interests and accessories to be accrued until maturity of the contracts.
| - 73 - | Delfín Jorge Ezequiel Carballo<br> Chairperson |
| --- | --- |
EXHIBIT J
| CONSOLIDATED CHANGES IN PROVISIONS | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| AS OF SEPTEMBER 30, 2021 | |||||||||||||
| (Translation of the Financial statements originally issued in Spanish – See Note 43) | |||||||||||||
| (Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of September 30, 2021, except that indicated otherwise) | |||||||||||||
| **** | Amounts at beginning of | **** | Decreases | Monetary effects generated for | **** | **** | |||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Item | fiscal year | Increases | Reversals | Charge off | provisions | 09/30/2021 | |||||||
| Provisions for eventual commitments | 23,566 | 278,780 | 1,153 | (21,243 | ) | 279,950 | |||||||
| For Administrative, disciplinary and criminal penalties | 984 | 37,775 | 229 | 37,725 | (305 | ) | 500 | ||||||
| Other | 1,762,099 | 912,959 | 1,150,295 | (434,760 | ) | 1,090,003 | |||||||
| Total Provisions | 1,786,649 | 1,229,514 | 229 | 1,189,173 | (456,308 | ) | 1,370,453 | ||||||
| CONSOLIDATED CHANGES IN PROVISIONS | |||||||||||||
| --- | |||||||||||||
| AS OF DECEMBER 31, 2020 | |||||||||||||
| (Translation of the Financial statements originally issued in Spanish – See Note 43) | |||||||||||||
| (Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of September 30, 2021, except that indicated otherwise) | |||||||||||||
| Amounts at beginning of | Decreases | Monetary <br> effects<br> generated<br> for | |||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Item | fiscal year | Increases | Reversals | Charge off | provisions | 12/31/2020 | |||||||
| Provisions for eventual commitments | 32,204 | 10,781 | 10,985 | (8,434 | ) | 23,566 | |||||||
| For Administrative, disciplinary and criminal penalties | 1,338 | (354 | ) | 984 | |||||||||
| Other | 2,713,905 | 1,536,684 | 11 | 1,727,187 | (761,292 | ) | 1,762,099 | ||||||
| Total Provisions | 2,747,447 | 1,547,465 | 11 | 1,738,172 | (770,080 | ) | 1,786,649 |
| - 74 - | Delfín Jorge Ezequiel Carballo<br> Chairperson |
| --- | --- | | EXHIBIT L | | --- | | CONSOLIDATED FOREIGN CURRENCY AMOUNTS | | --- | | AS OF SEPTEMBER 30, 2021 AND DECEMBER 31, 2020 | | (Translation of the Financial statements originally issued in Spanish – See Note 43) | | (Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of September 30, 2021, except that indicated otherwise) | | | 09/30/2021 | | | | | | | | | | 12/31/2020 | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | Total parent<br> <br>company and local | | Total per currency | | | | | | | | | | | Item | branches | | US dollar | | Euro | | Real | | Other | | Total | | | Assets | | | | | | | | | | | | | | Cash and deposits in banks | | 122,312,954 | | 121,499,620 | | 561,805 | | 21,771 | | 229,758 | | 144,792,684 | | Debt securities at fair value through profit or loss | | 926,466 | | 926,466 | | | | | | | | 8,159 | | Other financial assets | | 5,749,525 | | 5,749,525 | | | | | | | | 6,816,722 | | Loans and other financing | | 20,084,871 | | 20,074,407 | | 10,464 | | | | | | 31,898,669 | | Other financial institutions | | | | | | | | | | | | 29,075 | | From the non-financial private sector and foreign residents | | 20,084,871 | | 20,074,407 | | 10,464 | | | | | | 31,869,594 | | Other debt securities | | 11,734,495 | | 11,734,495 | | | | | | | | 8,067,236 | | Financial assets delivered as guarantee | | 2,085,392 | | 2,078,526 | | 6,866 | | | | | | 2,495,890 | | Equity Instruments at fair value through profit or loss | | 15,319 | | 15,319 | | | | | | | | 15,924 | | Total assets | | 162,909,022 | | 162,078,358 | | 579,135 | | 21,771 | | 229,758 | | 194,095,284 | | Liabilities | | | | | | | | | | | | | | Deposits | | 100,561,946 | | 100,561,627 | | 319 | | | | | | 105,595,017 | | Non-financial government sector | | 5,703,950 | | 5,703,950 | | | | | | | | 5,750,152 | | Financial sector | | 730,824 | | 730,824 | | | | | | | | 785,991 | | Non-financial private sector and foreign residents | | 94,127,172 | | 94,126,853 | | 319 | | | | | | 99,058,874 | | Other financial liabilities | | 8,469,646 | | 8,148,583 | | 304,615 | | | | 16,448 | | 25,267,499 | | Financing from Central Bank and other financial Institutions | | 513,055 | | 502,562 | | 10,493 | | | | | | 643,174 | | Subordinated corporate bonds | | 41,039,615 | | 41,039,615 | | | | | | | | 46,976,966 | | Other non-financial liabilities | | 23,321 | | 23,321 | | | | | | | | 27,822 | | Total liabilities | | 150,607,583 | | 150,275,708 | | 315,427 | | | | 16,448 | | 178,510,478 |
| - 75 - | Delfín Jorge Ezequiel Carballo<br> Chairperson |
| --- | --- |
EXHIBIT Q
| CONSOLIDATED BREAKDOWN OF STATEMENT OF INCOME | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| FOR THE THREE AND NINE MONTH PERIODS ENDED SEPTEMBER 30, 2021 AND 2020 | ||||||||||||
| (Translation of the Financial statements originally issued in Spanish – See Note 43) | ||||||||||||
| (Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of September 30, 2021, except that indicated otherwise) | ||||||||||||
| Net financial Income/(Loss) | ||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Mandatory measurement | ||||||||||||
| Items | Quarter ended 09/30/2021 | Accumulated from beginning of year up to 09/30/2021 | Quarter ended 09/30/2020 | Accumulated from beginning of year up to 09/30/2020 | ||||||||
| For measurement of financial assets at fair value through profit or loss | ||||||||||||
| Gain from government securities | 2,666,104 | 12,856,187 | 3,951,396 | 9,559,201 | ||||||||
| Gain from private securities | 487,430 | 1,168,792 | 417,030 | 976,100 | ||||||||
| Gain from derivative financial instruments | ||||||||||||
| Forward transactions | 2,024 | 95,536 | ||||||||||
| Gain/(Loss) from other financial assets | 10,292 | (7,586 | ) | (5,286 | ) | 4,103 | ||||||
| (Loss)/Gain from equity instruments at fair value through profit or loss | (50,055 | ) | 411,999 | (162,795 | ) | 127,046 | ||||||
| Gain/(Loss) from sales or decreases of financial assets at fair value (1) | 414,400 | 407,424 | (86,111 | ) | (73,853 | ) | ||||||
| For measurement of financial liabilities at fair value through profit or loss | ||||||||||||
| Loss from derivative financial instruments | ||||||||||||
| Forward transactions | (71,496 | ) | (77,346 | ) | ||||||||
| Total | 3,456,675 | 14,759,470 | 4,116,258 | 10,688,133 | ||||||||
| (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. | |||||||||||
| --- | --- |
| - 76 - | Delfín Jorge Ezequiel Carballo<br> Chairperson |
| --- | --- | | EXHIBIT Q | | --- | | (Continued) | | CONSOLIDATED BREAKDOWN OF STATEMENT OF INCOME | | --- | | FOR THE THREE AND NINE MONTH PERIODS ENDED SEPTEMBER 30, 2021 AND 2020 | | (Translation of the Financial statements originally issued in Spanish – See Note 43) | | (Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of September 30, 2021, except that indicated otherwise) | | | Net financial Income/(Loss) | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | Interest and adjustment for the application of the <br> effective interest rate of financial assets measured at amortized cost | Quarter <br> ended<br> 09/30/2021 | | | Accumulated<br> from<br> beginning of<br> year up to<br> 09/30/2021 | | | Quarter<br> ended<br> 09/30/2020 | | | Accumulated<br> from<br> beginning of <br> year up to<br> 09/30/2020 | | | | Interest income | | | | | | | | | | | | | | for cash and bank deposits | | 2,911 | | | 9,273 | | | 43,852 | | | 172,390 | | | for government securities | | 1,271,331 | | | 5,572,745 | | | 1,976,012 | | | 6,705,341 | | | for debt securities | | 43,670 | | | 239,811 | | | 402,181 | | | 1,980,852 | | | for loans and other financing | | | | | | | | | | | | | | Non-financial public sector | | 359,834 | | | 1,365,271 | | | 884,892 | | | 3,369,768 | | | Financial sector | | 138,913 | | | 487,406 | | | 299,554 | | | 1,145,584 | | | Non-financial private sector | | | | | | | | | | | | | | Overdrafts | | 1,813,119 | | | 5,460,951 | | | 2,092,232 | | | 12,928,390 | | | Documents | | 2,315,439 | | | 5,785,398 | | | 1,214,865 | | | 4,914,895 | | | Mortgage loans | | 2,998,737 | | | 10,412,244 | | | 2,365,930 | | | 7,922,022 | | | Pledge loans | | 255,792 | | | 548,945 | | | 161,094 | | | 503,567 | | | Personal loans | | 10,611,172 | | | 32,638,789 | | | 10,911,028 | | | 33,873,068 | | | Credit cards | | 3,213,888 | | | 9,652,897 | | | 3,819,911 | | | 12,295,362 | | | Financial leases | | (929 | ) | | 42,681 | | | 7,173 | | | 64,702 | | | Other | | 3,222,849 | | | 10,888,105 | | | 5,322,602 | | | 13,314,170 | | | for repo transactions | | | | | | | | | | | | | | Central Bank of Argentina | | 2,185,885 | | | 6,173,180 | | | 3,193,754 | | | 6,155,834 | | | Other financial institutions | | 5,395 | | | 40,272 | | | 15,139 | | | 89,012 | | | Total | | 28,438,006 | | | 89,317,968 | | | 32,710,219 | | | 105,434,957 | | | Interest expenses | | | | | | | | | | | | | | for deposits | | | | | | | | | | | | | | Non-financial private sector | | | | | | | | | | | | | | Checking accounts | | (98,069 | ) | | (1,065,398 | ) | | (645,496 | ) | | (1,036,373 | ) | | Saving accounts | | (259,818 | ) | | (845,894 | ) | | (189,573 | ) | | (643,558 | ) | | Time deposits and investments accounts | | (18,840,737 | ) | | (61,193,179 | ) | | (21,578,508 | ) | | (50,095,706 | ) | | for Financing received from Central Bank of Argentina and other financial institutions | | (23,088 | ) | | (123,442 | ) | | (27,172 | ) | | (88,402 | ) | | for repo transactions | | | | | | | | | | | | | | Other financial institutions | | (73,506 | ) | | (212,792 | ) | | (2,584 | ) | | (149,132 | ) | | for other financial liabilities | | (6,666 | ) | | (17,600 | ) | | (16,955 | ) | | (72,406 | ) | | Issued corporate bonds | | (110,055 | ) | | (681,784 | ) | | (529,760 | ) | | (1,611,492 | ) | | for subordinated corporate bonds | | (733,350 | ) | | (2,302,543 | ) | | (842,054 | ) | | (2,451,903 | ) | | Total | | (20,145,289 | ) | | (66,442,632 | ) | | (23,832,102 | ) | | (56,148,972 | ) |
| - 77 - | Delfín Jorge Ezequiel Carballo<br> Chairperson |
| --- | --- | | | EXHIBIT Q | | --- | --- | | | (Continued) | | CONSOLIDATED BREAKDOWN OF STATEMENT OF INCOME | | | FOR THE THREE AND NINE MONTH PERIODS ENDED SEPTEMBER 30, 2021 AND 2020 | | | (Translation of the Financial statements originally issued in Spanish – See Note 43) | | | (Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of September 30, 2021, except that indicated otherwise) | | | | Income of the period | | | | | Other<br> comprehensive<br> income | | | | | | Income of the period | | | | | Other<br> comprehensive<br> income | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | Interest and<br> adjustment for the application of the effective interest rate of financial assets measured at fair value through other comprehensive<br> income | | Quarter<br> <br> ended<br> 09/30/2021 | | Accumulated<br> <br> from<br> beginning of<br> year up to<br> 09/30/2021 | | | Quarter<br> <br> ended<br> 09/30/2021 | | | Accumulated<br><br> from <br> beginning of <br> year up to<br> 09/30/2021 | | | Quarter<br> <br> ended<br> 09/30/2020 | | Accumulated<br> <br> from <br> beginning of<br> year up to<br> 09/30/2020 | | | Quarter<br> <br> ended<br> 09/30/2020 | | | Accumulated<br><br> from <br> beginning of <br> year up to<br> 09/30/2020 | | | | From<br> debt government securities | | | 21,454,485 | | 63,612,910 | | | (257,039 | ) | | 29,204 | | | 23,382,991 | | 52,715,111 | | | (393,366 | ) | | (1,164,345 | ) | | Total | | | 21,454,485 | | 63,612,910 | | | (257,039 | ) | | 29,204 | | | 23,382,991 | | 52,715,111 | | | (393,366 | ) | | (1,164,345 | ) | | **** | Income of the period | | | | | | | | | | | **** | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | Items | Quarter <br> ended <br> 09/30/2021 | | | Accumulated<br><br> from <br><br>beginning of<br><br> year up to<br><br> 09/30/2021 | | | Quarter <br><br>ended<br><br>09/30/2020 | | | Accumulated<br><br> from<br><br> beginning of<br><br> year up to<br><br> 09/30/2020 | | | | Commissions income | | | | | | | | | | | | | | Commissions related to obligations | | 4,823,334 | | | 13,666,424 | | | 4,599,192 | | | 13,493,739 | | | Commissions related to credits | | 31,272 | | | 101,229 | | | 47,752 | | | 208,099 | | | Commissions related to loans commitments and financial guarantees | | 981 | | | 2,441 | | | 157 | | | 691 | | | Commissions related to securities value | | 194,558 | | | 492,371 | | | 229,477 | | | 542,301 | | | Commissions for credit cards | | 2,897,489 | | | 8,310,225 | | | 3,076,002 | | | 8,945,161 | | | Commissions for insurances | | 500,931 | | | 1,535,835 | | | 548,500 | | | 1,631,858 | | | Commissions related to trading and foreign exchange transactions | | 218,282 | | | 606,866 | | | 247,461 | | | 577,131 | | | Total | | 8,666,847 | | | 24,715,391 | | | 8,748,541 | | | 25,398,980 | | | Commissions expenses | | | | | | | | | | | | | | Commissions related to trading and foreign exchange transactions | | (46,394 | ) | | (79,405 | ) | | (45,846 | ) | | (126,195 | ) | | Other | | | | | | | | | | | | | | Commissions paid ATM exchange | | (555,144 | ) | | (1,547,109 | ) | | (429,750 | ) | | (1,245,518 | ) | | Checkbooks commissions and compensating cameras | | (155,852 | ) | | (429,967 | ) | | (148,441 | ) | | (424,880 | ) | | Commissions credit cards and foreign trade | | (84,397 | ) | | (253,354 | ) | | (87,517 | ) | | (270,895 | ) | | Total | | (841,787 | ) | | (2,309,835 | ) | | (711,554 | ) | | (2,067,488 | ) |
| - 78 - | Delfín Jorge Ezequiel Carballo<br> Chairperson |
| --- | --- | | | EXHIBIT R | | --- | --- | | VALUE ADJUSTMENT FOR CREDIT LOSSES - CONSOLIDATED ALLOWANCES FOR UNCOLLECTIBILITY RISK | | | AS OF SEPTEMBER 30, 2021 | | | (Translation of the Financial statements originally issued in Spanish – See Note 43) | | | (Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of September 30, 2021, except that indicated otherwise) | | | **** | **** | Movements between stages of period | | | | | **** | **** | **** | **** | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | **** | **** | **** | **** | ECL of remanent life of financial asset | | | **** | **** | **** | **** | | Item | Balances 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 | **** | Effect monetary generated for provisions | **** | 09/30/2021 | | Other<br> financial assets | 25,922 | 6,975 | | | | | | (7,501 | ) | 25,396 | | Loans and<br> other financing | 13,726,752 | (3,088,160 | ) | (1,897 | ) | 2,188,082 | | (3,671,348 | ) | 9,153,429 | | Other financial<br> institutions | 22,752 | (13,545 | ) | | | | | (4,939 | ) | 4,268 | | To the<br> non-financial private sector and foreign residents | | | | | | | | | | | | Overdrafts | 939,167 | 47,857 | | 217,147 | | (595,383 | ) | (184,117 | ) | 424,671 | | Documents | 732,207 | 153,322 | | 40,500 | | 11,646 | | (191,340 | ) | 746,335 | | Mortgage<br> loans | 1,031,224 | (29,966 | ) | (16,607 | ) | 89,205 | | (295,690 | ) | 778,166 | | Pledge<br> loans | 183,997 | (16,188 | ) | (25,913 | ) | 40,486 | | (52,561 | ) | 129,821 | | Personal<br> loans | 3,897,463 | (936,769 | ) | 303,135 | | 1,748,676 | | (1,269,635 | ) | 3,742,870 | | Credit<br> cards | 4,641,319 | (1,836,216 | ) | (542,578 | ) | 739,165 | | (1,103,999 | ) | 1,897,691 | | Financial<br> leases | 13,761 | 357 | | (70 | ) | (5,096 | ) | (3,063 | ) | 5,889 | | Other | 2,264,862 | (457,012 | ) | 22,489 | | 159,383 | | (566,004 | ) | 1,423,718 | | Eventual<br> commitments | 23,566 | 220,220 | | 51,085 | | | | (14,921 | ) | 279,950 | | Other<br> debt securities | 1,839 | (1,116 | ) | | | | | (323 | ) | 400 | | Total<br> of allowances | 13,778,079 | (2,862,081 | ) | 49,188 | | 2,188,082 | | (3,694,093 | ) | 9,459,175 |
VALUE ADJUSTMENT FOR CREDIT LOSSES - CONSOLIDATED ALLOWANCES FOR UNCOLLECTIBILITY RISK
AS OF DECEMBER 31, 2020
(Translation of the Financial statements originally issued in Spanish – See Note 43)
(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of September 30, 2021, except that indicated otherwise)
| **** | **** | Movements between stages of the fiscal year | **** | **** | **** | **** | ||||
|---|---|---|---|---|---|---|---|---|---|---|
| **** | **** | **** | **** | ECL of remanent life of financial asset | **** | **** | **** | **** | ||
| Item | Balances 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 | **** | Effect monetary generated for provisions | **** | 12/31/2020 |
| Other<br> financial assets | 19,217 | 15,501 | (8,796 | ) | 25,922 | |||||
| Loans and<br> other financing | 9,452,773 | 5,761,650 | 2,757,918 | (653,824 | ) | (3,591,765 | ) | 13,726,752 | ||
| Other financial<br> institutions | 51,458 | (17,876 | ) | (10,830 | ) | 22,752 | ||||
| To the<br> non-financial private sector and foreign residents | ||||||||||
| Overdrafts | 1,438,974 | 18,621 | 1,728 | (29,456 | ) | (490,700 | ) | 939,167 | ||
| Documents | 684,839 | 189,935 | 115,518 | (42,427 | ) | (215,658 | ) | 732,207 | ||
| Mortgage<br> loans | 714,204 | 143,798 | 413,617 | 5,380 | (245,775 | ) | 1,031,224 | |||
| Pledge<br> loans | 240,623 | 33,711 | 9,827 | (23,624 | ) | (76,540 | ) | 183,997 | ||
| Personal<br> loans | 3,425,892 | 1,251,778 | 684,093 | (321,952 | ) | (1,142,348 | ) | 3,897,463 | ||
| Credit<br> cards | 1,478,699 | 2,964,120 | 1,101,244 | (100,700 | ) | (802,044 | ) | 4,641,319 | ||
| Financial<br> leases | 9,977 | (2,665 | ) | (1,081 | ) | 10,584 | (3,054 | ) | 13,761 | |
| Other | 1,408,107 | 1,180,228 | 432,972 | (151,629 | ) | (604,816 | ) | 2,264,862 | ||
| Eventual<br> commitments | 32,204 | 7,283 | (7,451 | ) | 478 | (8,948 | ) | 23,566 | ||
| Other<br> debts securities | 3,612 | 364 | (2,137 | ) | 1,839 | |||||
| Total<br> of allowances | 9,507,806 | 5,784,798 | 2,750,467 | (653,346 | ) | (3,611,646 | ) | 13,778,079 |
| - 79 - | Delfín Jorge Ezequiel Carballo<br> Chairperson |
| --- | --- | | CONDENSED SEPARATE INTERIM STATEMENT OF FINANCIAL POSITION | | --- | | AS OF SEPTEMBER 30, 2021 AND DECEMBER 31, 2020 | | (Translation of the Financial statements originally issued in Spanish – See Note 40) | | (Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of September 30, 2021, except that indicated otherwise) | | Items | Notes | Exhibits | 09/30/2021 | | 12/31/2020 | | | --- | --- | --- | --- | --- | --- | --- | | ASSETS | | | | | | | | Cash and Deposits in Banks | 8 | | | 161,741,706 | | 156,813,102 | | Cash | | | | 24,957,605 | | 34,817,092 | | Central Bank of Argentina | | | | 93,618,895 | | 68,472,008 | | Other Local and Foreign Entities | | | | 43,159,031 | | 53,516,795 | | Other | | | | 6,175 | | 7,207 | | Debt Securities at fair value through profit or loss | 8 | A | | 19,736,558 | | 72,843,222 | | Derivative Financial Instruments | 8 | | | 935 | | 9,905 | | Repo transactions | 8 | | | 22,431,396 | | 55,042,144 | | Other financial assets | 5, 6 and 8 | R | | 17,584,575 | | 22,354,642 | | Loans and other financing | 6 and 8 | B, C, D and R | | 310,049,053 | | 352,521,541 | | Non-financial Public Sector | | | | 2,677,579 | | 4,950,764 | | Other Financial Entities | | | | 1,702,591 | | 2,496,253 | | Non-financial Private Sector and Foreign Residents | | | | 305,668,883 | | 345,074,524 | | Other Debt Securities | 8 | A and R | | 265,215,493 | | 279,580,564 | | Financial Assets delivered as guarantee | 8 and 27 | | | 18,671,709 | | 19,463,082 | | Equity Instruments at fair value through profit or loss | 7 and 8 | A | | 2,085,273 | | 2,277,460 | | Investment in subsidiaries, associates and joint arrangements | 9 | | | 6,458,155 | | 6,476,362 | | Property, plant and equipment | | F | | 48,107,617 | | 47,034,429 | | Intangible Assets | | G | | 7,540,663 | | 6,988,019 | | Other Non-financial Assets | 10 | | | 1,755,862 | | 2,704,407 | | Non-current assets held for sale | | | | 2,992,366 | | 3,027,652 | | TOTAL ASSETS | | | | 884,371,361 | | 1,027,136,531 |
| - 80 - | Delfín Jorge Ezequiel Carballo<br> Chairperson |
| --- | --- | | CONDENSED SEPARATE INTERIM STATEMENT OF FINANCIAL POSITION | | --- | | AS OF SEPTEMBER 30, 2021 AND DECEMBER 31, 2020 | | (Translation of the Financial statements originally issued in Spanish – See Note 40) | | (Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of September 30, 2021, except that indicated otherwise) | | Items | Notes | | Exhibits | | 09/30/2021 | | | 12/31/2020 | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | LIABILITIES | | | | | | | | | | | | Deposits | | 8 | | H and I | | 534,030,146 | | | 664,383,893 | | | Non-financial Public Sector | | | | | | 53,929,846 | | | 100,753,677 | | | Financial Sector | | | | | | 829,782 | | | 953,796 | | | Non-financial Private Sector and Foreign Residents | | | | | | 479,270,518 | | | 562,676,420 | | | Derivative Financial Instruments | | 8 | | I | | 2,440 | | | 315 | | | Repo Transactions | | 8 | | I | | 1,810,254 | | | 847,183 | | | Other Financial Liabilities | | 8 and 12 | | I | | 41,889,714 | | | 45,511,176 | | | Financing received from the Central Bank of Argentina and other financial entities | | 8 | | I | | 594,979 | | | 1,258,478 | | | Issued Corporate Bonds | | 8 and 32 | | I | | 3,136,663 | | | 6,747,782 | | | Current Income Tax Liabilities | | | | | | 2,349,822 | | | 6,832,455 | | | Subordinated Corporate Bonds | | 8 and 32 | | I | | 41,039,615 | | | 46,976,966 | | | Provisions | | 13 | | J and R | | 1,370,453 | | | 1,786,649 | | | Deferred Income Tax Liabilities | | 17 | | | | 7,812,247 | | | 8,616,356 | | | Other Non-financial Liabilities | | 14 | | | | 43,488,305 | | | 41,369,447 | | | TOTAL LIABILITIES | | | | | | 677,524,638 | | | 824,330,700 | | | SHAREHOLDERS’ EQUITY | | | | | | | | | | | | Capital Stock | | 25 | | K | | 639,413 | | | 639,413 | | | Non-capital contributions | | | | | | 12,429,781 | | | 12,429,781 | | | Adjustments to Shareholders’ Equity | | | | | | 73,737,944 | | | 73,737,944 | | | Earnings Reserved | | | | | | 110,539,792 | | | 150,402,396 | | | Unappropriated Retained Earnings | | | | | | (8,093,918 | ) | | (69,316,862 | ) | | Other Comprehensive Income accumulated | | 3 | | | | 2,541,617 | | | 1,539,038 | | | Net Income of the period/ fiscal year | | | | | | 15,052,094 | | | 33,374,121 | | | TOTAL SHAREHOLDERS’ EQUITY | | | | | | 206,846,723 | | | 202,805,831 | | | TOTAL SHAREHOLDERS’ EQUITY AND LIABILITIES | | | | | | 884,371,361 | | | 1,027,136,531 | |
The notes 1 to 40 to the condensed separate interim financial statement and the exhibits A to D, F to L, O, Q and R are an integral part of the condensed separate interim financial statement.
| - 81 - | Delfín Jorge Ezequiel Carballo<br> Chairperson |
| --- | --- | | CONDENSED SEPARATE STATEMENT OF INCOME | | --- | | FOR THE THREE AND NINE MONTH PERIODS ENDED SEPTEMBER 30, 2021 AND 2020 | | (Translation of the Financial statements originally issued in Spanish – See Note 40) | | (Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of September 30, 2021, except that indicated otherwise) | | Items | Notes | | Exhibits | | Quarter <br><br>ended 09/30/2021 | | | Accumulated from<br><br> beginning of year up to 09/30/2021 | | | Quarter<br><br> ended 09/30/2020 | | | Accumulated from<br><br> beginning of year up to 09/30/2020 | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | Interest income | | | | Q | | 49,839,000 | | | 152,763,649 | | | 56,187,248 | | | 158,075,246 | | | Interest expense | | | | Q | | (20,143,465 | ) | | (66,444,630 | ) | | (23,827,259 | ) | | (56,144,129 | ) | | Net Interest income | | | | | | 29,695,535 | | | 86,319,019 | | | 32,359,989 | | | 101,931,117 | | | Commissions income | | 18 | | Q | | 8,543,031 | | | 24,408,601 | | | 8,564,821 | | | 24,994,348 | | | Commissions expense | | | | Q | | (762,127 | ) | | (2,114,240 | ) | | (693,435 | ) | | (2,033,307 | ) | | Net Commissions income | | | | | | 7,780,904 | | | 22,294,361 | | | 7,871,386 | | | 22,961,041 | | | Subtotal (Net Interest income +Net Commissions income) | | | | | | 37,476,439 | | | 108,613,380 | | | 40,231,375 | | | 124,892,158 | | | Profit from measurement of financial instruments at fair value through profit or loss | | | | Q | | 3,258,735 | | | 14,286,009 | | | 4,804,897 | | | 11,126,199 | | | Profit from sold or derecognized assets at amortized cost | | | | | | 2 | | | 139,152 | | | 93,373 | | | 1,598,657 | | | Differences in quoted prices of gold and foreign currency | | 19 | | | | 530,848 | | | 2,610,488 | | | 1,770,799 | | | 3,868,393 | | | Other operating income | | 20 | | | | 1,331,717 | | | 4,131,222 | | | 1,538,925 | | | 4,792,946 | | | Allowances for loan losses | | | | | | (212,893 | ) | | (446,171 | ) | | (2,664,722 | ) | | (8,015,302 | ) | | Net Operating Income | | | | | | 42,384,848 | | | 129,334,080 | | | 45,774,647 | | | 138,263,051 | | | Employee benefits | | 21 | | | | (8,891,583 | ) | | (26,573,671 | ) | | (9,306,602 | ) | | (26,622,919 | ) | | Administrative expenses | | 22 | | | | (4,425,241 | ) | | (12,687,677 | ) | | (5,125,467 | ) | | (14,386,261 | ) | | Depreciation and amortization of fixed assets | | | | F and G | | (1,644,020 | ) | | (4,757,946 | ) | | (1,540,852 | ) | | (4,482,123 | ) | | Other Operating Expenses | | 23 | | | | (7,479,735 | ) | | (21,923,928 | ) | | (6,949,758 | ) | | (21,069,236 | ) | | Operating Income | | | | | | 19,944,269 | | | 63,390,858 | | | 22,851,968 | | | 71,702,512 | | | Income/(loss) from subsidiaries, associates and joint arrangements | | 9 | | | | 198,833 | | | 526,506 | | | (808,100 | ) | | (427,169 | ) | | Loss on net monetary position | | | | | | (12,651,895 | ) | | (44,667,081 | ) | | (10,037,167 | ) | | (26,665,957 | ) | | Income before tax on continuing operations | | | | | | 7,491,207 | | | 19,250,283 | | | 12,006,701 | | | 44,609,386 | | | Income tax on continuing operations | | 17.b) | | | | (136,955 | ) | | (4,198,189 | ) | | (4,636,374 | ) | | (15,582,776 | ) | | Net Income from continuing operations | | | | | | 7,354,252 | | | 15,052,094 | | | 7,370,327 | | | 29,026,610 | | | Net Income of the period | | | | | | 7,354,252 | | | 15,052,094 | | | 7,370,327 | | | 29,026,610 | |
| - 82 - | Delfín Jorge Ezequiel Carballo<br> Chairperson |
| --- | --- | | SEPARATE EARNINGS PER SHARE | | --- | | FOR THE THREE AND NINE MONTH PERIODS ENDED SEPTEMBER 30, 2021 AND 2020 | | (Translation of the Financial statements originally issued in Spanish – See Note 40) | | (Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of September 30, 2021, except that indicated otherwise) | | Items | Quarter <br> ended <br> 09/30/2021 | | Accumulated <br> from <br> beginning of <br> year up to <br> 09/30/2021 | | Quarter <br> ended <br> 09/30/2020 | | Accumulated <br> from <br> beginning of <br> year up to<br> 09/30/2020 | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | Net Profit attributable to Parent’s shareholders | | 7,354,252 | | 15,052,094 | | 7,370,327 | | 29,026,610 | | PLUS: Potential diluted earnings per common share | | | | | | | | | | Net Profit attributable to Parent’s shareholders adjusted as per diluted earnings | | 7,354,252 | | 15,052,094 | | 7,370,327 | | 29,026,610 | | Weighted average of outstanding common shares of the period | | 639,413 | | 639,413 | | 639,413 | | 639,413 | | PLUS: Weighted average of the number of additional common shares with dilution effects | | | | | | | | | | Weighted average of outstanding common shares of the period adjusted as per dilution effect | | 639,413 | | 639,413 | | 639,413 | | 639,413 | | Basic earnings per share (in pesos) | | 11.5016 | | 23.5405 | | 11.5267 | | 45.3957 |
| - 83 - | Delfín Jorge Ezequiel Carballo<br> Chairperson |
| --- | --- | | CONDENSED SEPARATE INTERIM STATEMENT OF OTHER COMPREHENSIVE INCOME | | --- | | FOR THE THREE AND NINE MONTH PERIODS ENDED SEPTEMBER 30, 2021 AND 2020 | | (Translation of the Financial statements originally issued in Spanish – See Note 40) | | (Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of September 30, 2021, except that indicated otherwise) | | Items | Notes | | Exhibits | | Quarter<br><br>ended<br><br>09/30/2021 | | | Accumulated<br> from <br> beginning<br> of year up to 09/30/2021 | | | Quarter<br> ended 09/30/2020 | | | Accumulated<br> from <br> beginning of <br> year up to 09/30/2020 | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | Net Income of the period | | | | | | 7,354,252 | | | 15,052,094 | | | 7,370,327 | | | 29,026,610 | | | Items of Other Comprehensive Income that will be reclassified to profit or loss | | | | | | | | | | | | | | | | | | Foreign currency translation differences in financial statements conversion | | | | | | (184,306 | ) | | (520,419 | ) | | 79,007 | | | 194,322 | | | Foreign currency translation differences of the period | | | | | | (184,306 | ) | | (520,419 | ) | | 79,007 | | | 194,322 | | | Profit or losses for financial instruments measured at fair value through OCI (IFRS 9(4.1.2)(a)) | | | | | | 249,121 | | | 1,649,945 | | | 189,123 | | | 470,310 | | | Profit or losses of the period financial instruments at fair value through OCI | | | | Q | | (249,362 | ) | | 156,151 | | | (302,614 | ) | | (960,765 | ) | | Adjustment for reclassification of period | | | | | | 619,520 | | | 2,206,112 | | | 563,596 | | | 1,618,727 | | | Income tax | | 17.b) | | | | (121,037 | ) | | (712,318 | ) | | (71,859 | ) | | (187,652 | ) | | Interest in Other Comprehensive Income of associates and joint ventures accounted for using the participation method | | | | | | (7,677 | ) | | (126,947 | ) | | 895,741 | | | 782,830 | | | (Losses)/Income of the period from interest in Other Comprehensive Income of associates and joint ventures accounted for using the participation method | | | | | | (7,677 | ) | | (126,947 | ) | | 895,741 | | | 782,830 | | | Total Other Comprehensive Income that will be reclassified to profit or loss of the period | | | | | | 57,138 | | | 1,002,579 | | | 1,163,871 | | | 1,447,462 | | | Total Other Comprehensive Income | | | | | | 57,138 | | | 1,002,579 | | | 1,163,871 | | | 1,447,462 | | | Total Comprehensive Income | | | | | | 7,411,390 | | | 16,054,673 | | | 8,534,198 | | | 30,474,072 | |
The notes 1 to 40 to the condensed separate interim financial statement and the exhibits A to D, F to L, O, Q and R are an integral part of the condensed separate interim financial statement.
| - 84 - | Delfín Jorge Ezequiel Carballo<br> Chairperson |
| --- | --- | | CONDENSED SEPARATE INTERIM STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY | | --- | | FOR THE NINE MONTH PERIOD ENDED SEPTEMBER 30, 2021 | | (Translation of the Financial statements originally issued in Spanish – See Note 40) | | (Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of September 30, 2021, except that indicated otherwise) | | **** | **** | Capital<br><br> <br>stock | Non-capital Contributions | **** | Other Comprehensive Income | | | Earnings Reserved | | **** | **** | **** | **** | **** | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | Changes | Notes | Outstanding shares | Additional paid-in capital | Adjustments<br> <br>to Shareholders’ Equity | Accumulative foreign currency translation difference in financial statements conversion | **** | Other (1) | Legal | Other | **** | Unappropriated Retained Earnings (1) | **** | Total Equity | **** | | Restated amount at the beginning of the fiscal year | | 639,413 | 12,429,781 | 73,737,944 | 1,239,890 | | 299,148 | 43,950,705 | 106,451,691 | | (35,942,741 | ) | 202,805,831 | | | Total comprehensive income of the period | | | | | | | | | | | | | | | | - Net income of the period | | | | | | | | | | | 15,052,094 | | 15,052,094 | | | - Other comprehensive income of the period | | | | | (520,419 | ) | 1,522,998 | | | | 0 | | 1,002,579 | | | Distribution of unappropriated retained earnings as approved by Shareholders´ Meeting held on April 30, 2021 | 35 | | | | | | | | | | | | | | | -Cash dividends | | | | | | | | | (11,650,368 | ) | | | (11,650,368 | ) | | -Absorption of loss accumulated | | | | | | | | | | | | | | | | Voluntary reserve | | | | | | | | | (605 | ) | 605 | | | | | Voluntary reserve for future distribution earnings | | | | | | | | | (27,848,218 | ) | 27,848,218 | | | | | Personal property tax on business corporation | | | | | | | | | (363,413 | ) | | | (363,413 | ) | | Amount at the end of the period | | 639,413 | 12,429,781 | 73,737,944 | 719,471 | | 1,822,146 | 43,950,705 | 66,589,087 | | 6,958,176 | | 206,846,723 | | | CONDENSED SEPARATE INTERIM STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY | | --- | | FOR THE NINE MONTH PERIOD ENDED SEPTEMBER 30, 2020 | | (Translation of the Financial statements originally issued in Spanish – See Note 40) | | (Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of September 30, 2021, except that indicated otherwise) | | **** | **** | Capital stock | Non-capital Contributions | **** | Other Comprehensive Income | | **** | Earnings Reserved | | **** | **** | **** | **** | **** | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | Changes | Notes | Outstanding shares | Additional paid-in capital | Adjustments to Shareholders’ Equity | Accumulative foreign currency translation difference in financial statements conversion | Other (1) | **** | Legal | Other | **** | Unappropriated Retained Earnings (1) | **** | Total Equity | **** | | Restated amount at the beginning of the fiscal year | | 639,413 | 12,429,781 | 73,737,944 | 1,075,728 | (821,241 | ) | 28,736,032 | 73,676,513 | | 6,037,784 | | 195,511,954 | | | Total comprehensive income of the period | | | | | | | | | | | | | | | | - Net income of the period | | | | | | | | | | | 29,026,610 | | 29,026,610 | | | - Other comprehensive income of the period | | | | | 194,322 | 1,253,140 | | | | | 0 | | 1,447,462 | | | Distribution of unappropriated retained earnings as approved by Shareholders´ Meeting held on April 30, 2020 | | | | | | | | | | | | | | | | - Legal reserve | | | | | | | | 15,214,673 | | | (15,214,673 | ) | | | | - Normative reserve | | | | | | | | | 60,139,973 | | (60,139,973 | ) | | | | - Cash dividends | | | | | | | | | (21,793,062 | ) | | | (21,793,062 | ) | | Amount at the end of the period | | 639,413 | 12,429,781 | 73,737,944 | 1,270,050 | 431,899 | | 43,950,705 | 112,023,424 | | (40,290,252 | ) | 204,192,964 | |
(1) Amounts at the beginning of the fiscal year were adjusted in accordance with Communication “A” 7211. See also Note 3 to the condensed consolidated interim financial statements section “New standards adopted in the fiscal year”.
The notes 1 to 40 to the condensed separate interim financial statement and the exhibits A to D, F to L, O, Q and R are an integral part of the condensed separate interim financial statement.
| - 85 - | Delfín Jorge Ezequiel Carballo<br> Chairperson |
| --- | --- |
CONDENSED SEPARATE INTERIM STATEMENT OF CASH FLOWS
FOR THE NINE MONTH PERIODS ENDED SEPTEMBER 30, 2021 AND 2020
(Translation of the Financial statements originally issued in Spanish – See Note 40)
(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of September 30, 2021, except that indicated otherwise)
| Items | Notes | 09/30/2021 | 09/30/2020 | ||||
|---|---|---|---|---|---|---|---|
| Cash flows from operating activities | |||||||
| Income of the period before Income Tax | 19,250,283 | 44,609,386 | |||||
| Adjustment for the total monetary effect of the period | 44,667,081 | 26,665,957 | |||||
| Adjustments to obtain cash flows from operating activities: | - | - | |||||
| Amortization and depreciation | 4,757,946 | 4,482,123 | |||||
| Allowance for loan losses | 446,171 | 8,015,302 | |||||
| Difference in quoted prices of foreign currency | (12,057,013 | ) | (16,006,802 | ) | |||
| Other adjustments | 30,500,377 | 24,631,927 | |||||
| Net increase/(decrease) from operating assets: | - | - | |||||
| Debt Securities at fair value through profit and loss | 53,174,806 | (13,117,700 | ) | ||||
| Derivative financial instruments | 8,970 | 73,641 | |||||
| Repo transactions | 32,610,748 | (81,377,915 | ) | ||||
| Loans and other financing | - | - | |||||
| Non-financial public sector | 2,273,185 | 5,914,860 | |||||
| Other financial entities | 793,662 | 4,645,891 | |||||
| Non-financial private sector and foreign residents | 38,780,030 | 29,918,735 | |||||
| Other debt securities | (31,483,499 | ) | (133,511,825 | ) | |||
| Financial assets delivered as guarantee | 791,373 | 1,350,137 | |||||
| Equity instruments at fair value through profit or loss | 192,187 | 384,291 | |||||
| Other assets | 4,713,431 | (13,030,751 | ) | ||||
| Net increase/(decrease) from operating liabilities: | - | - | |||||
| Deposits | - | - | |||||
| Non-financial public sector | (46,823,831 | ) | 128,322,047 | ||||
| Financial sector | (124,014 | ) | 86,593 | ||||
| Non-financial private sector and foreign residents | (83,405,902 | ) | 115,527,462 | ||||
| Derivative financial instruments | 2,125 | (1,432,762 | ) | ||||
| Repo transactions | 963,071 | (1,869,236 | ) | ||||
| Other liabilities | (5,467,069 | ) | 1,474,524 | ||||
| Payments for Income Tax | (8,188,742 | ) | (8,747,368 | ) | |||
| Total cash from operating activities (A) | 46,375,376 | 127,008,517 |
| - 86 - | Delfín Jorge Ezequiel Carballo<br> Chairperson |
| --- | --- |
CONDENSED SEPARATE INTERIM STATEMENT OF CASH FLOWS
FOR THE NINE MONTH PERIODS ENDED SEPTEMBER 30, 2021 AND 2020
(Translation of the Financial statements originally issued in Spanish – See Note 40)
(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of September 30, 2021, except that indicated otherwise)
| Items | Notes | 09/30/2021 | 09/30/2020 | ||||
|---|---|---|---|---|---|---|---|
| Cash flows from investing activities | |||||||
| Payments: | |||||||
| Acquisition of PPE, intangible assets and other assets | (5,224,381 | ) | (3,564,778 | ) | |||
| Total cash used in investing activities (B) | (5,224,381 | ) | (3,564,778 | ) | |||
| Cash flows from financing activities | |||||||
| Payments: | |||||||
| Non subordinated corporate bonds | (3,472,661 | ) | (2,245,857 | ) | |||
| Financing from local financial entities | (541,986 | ) | (3,040,030 | ) | |||
| Subordinated corporate bonds | (1,425,876 | ) | (1,516,282 | ) | |||
| Other payments related to financing activities | (472,907 | ) | (553,852 | ) | |||
| Collections/Incomes: | - | - | |||||
| Non Subordinated Corporate Bonds | 598,449 | - | |||||
| Central Bank of Argentina | - | 6,526 | |||||
| Total cash used in financing activities (C) | (5,314,981 | ) | (7,349,495 | ) | |||
| Effect of exchange rate fluctuations (D) | 19,417,481 | 27,690,098 | |||||
| Monetary effect on cash and cash equivalents (E) | (96,105,319 | ) | 63,181,280 | ) | |||
| Net (decrease)/increase in cash and cash equivalents (A+B+C+D+E) | (40,851,824 | ) | 80,603,062 | ||||
| Restated cash and cash equivalents at the beginning of the fiscal year | 24 | 333,044,697 | 267,245,199 | ||||
| Cash and cash equivalents at the end of the period | 24 | 292,192,873 | 347,848,261 |
The notes 1 to 40 to the condensed separate interim financial statement and the exhibits A to D, F to L, O, Q and R are an integral part of the condensed separate interim financial statement.
| - 87 - | Delfín Jorge Ezequiel Carballo<br> Chairperson |
| --- | --- |
NOTES TO THE CONDENSEDSEPARATE INTERIM FINANCIAL STATEMENTS AS OF SEPTEMBER 30, 2021
(Translation of Financial statements originally issued in Spanish – See Note 40)
(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of September 30, 2021, unless expressly stated)
| 1. | CORPORATE INFORMATION |
|---|
Banco Macro SA (hereinafter, the “Bank”) is a business corporation (sociedad anónima) organized in the Republic of Argentina that offers traditional banking products and services to companies, including those companies operating in regional economies as well as to individuals, thus strengthening its goal to be a multiservice bank. In addition, the Bank performs certain transactions through its subsidiaries Macro Bank Limited (a company organized under the laws of Bahamas), Macro Securities SA, Macro Fiducia SA, Macro Fondos SGFCISA and Argenpay SAU.
Macro Compañía Financiera SA was created in 1977 as a non-banking financial institution. In May 1988, it received the authorization to operate as a commercial bank and it was incorporated as Banco Macro SA. Subsequently, as a result of the merger process with other entities, it adopted other names (among them, Banco Macro Bansud SA) and since August 2006, Banco Macro SA.
The Bank’s shares are publicly listed on Bolsas y Mercados Argentinos (BYMA) since November 1994 and as from March 24, 2006, they are listed on the New York Stock Exchange (NYSE). Additionally, on October 15, 2015 they were authorized to be listed on the Mercado Abierto Electrónico SA (MAE).
Since 1994, Banco Macro SA’s market strategy was mainly focused on the regional areas outside the 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. In addition, during the fiscal year 2006, the Bank acquired control over Banco del Tucumán SA, which was merged with Banco Macro SA in October 2019.
During 2020 and 2021 the Bank made irrevocable capital contributions in the company Play Digital SA for a total amount of 253,557 (not restated), subscribing 215,717,076 common, registered shares, with a face value of Ps. 1. See note 1 to the condensed consolidated interim financial statements.
In addition, on October 1, 2021 the bank decided to exercise a call option to reach 24.99% of the equity interest in Fintech SGR. Additionally, on October 15, 2021, the bank paid 50,850 in order to purchase share representing 50% of the capital stock and votes of Finova SA (see also note 1 to the condensed consolidated interim financial statements).
On November 24, 2021, the Bank’s Board of Directors approved the issuance of these condensed separate interim financial statements.
| 2. | OPERATIONS OF THE BANK |
|---|
Note 2 to the condensed consolidated interim financial statements includes a detailed description of the agreements that relate the Bank with the provincial and municipalities governments.
| 3. | BASIS FOR THE PREPARATION OF THESE FINANCIAL STATEMENTS AND APPLICABLE ACCOUNTING STANDARDS |
|---|
Applicable Accounting Standards
These condensed separate interim financial statements of the Bank were prepared in accordance with the accounting framework established by Central Bank of Argentina (BCRA, for its acronym in Spanish), in its Communiqué “A” 6114 as supplementary. 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).
- 88 -
NOTES TO THE CONDENSEDSEPARATE INTERIM FINANCIAL STATEMENTS AS OF SEPTEMBER 30, 2021
(Translation of Financial statements originally issued in Spanish – See Note 40)
(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of September 30, 2021, unless expressly stated)
The transitory exceptions and regulatory guidelines established by BCRA to the application of effective IFRS, that have affected the preparation of these condensed separate interim financial statements are as follows:
| a) | According to Communiqué “A” 6114, as supplementary, and in the convergence process<br>through IFRS, the BCRA established that since fiscal years beginning on January 1, 2020 included, financial institutions defined<br>as “Group A” by BCRA rules, in which the Bank is included, begin to apply section 5.5 “Impairment” of the IFRS<br>9 “Financial Instruments” (sections B5.5.1 to B5.5.55), except for the temporary exclusion for the debt securities of the<br>non-financial public sector established by BCRA Communiqué “A” 6847. As of the date of issuance of these condensed<br>separate interim financial statements, the Bank is in the process of quantifying the effect of the full application of the mentioned standard. |
|---|---|
| b) | Additionally, the Bank received on March 12 and 22, 2021 and April 29, 2019 Memorandums from<br>the BCRA, which established specifics guidelines related to the measurement of the Bank’s holding in Prisma Medios de Pago SA as<br>explained in note 7. Considering such guidelines, the Bank adjusted the fair value previously determined. As of the date of issuance of<br>these condensed separate interim financial statements, the Bank is in the process of quantifying the difference over such fair value and<br>the fair value calculated according to IFRS, which could be material. |
| --- | --- |
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” 7183. Generally, the BCRA does not allow the anticipated application of any IFRS, unless otherwise expressly stated.
Note 3 to the condensed consolidated interim financial statements presents 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.
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 “Investment 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 profits and losses of the entity after the date of acquisition or creation.
Shares in profits and losses of subsidiaries and associates are recognized under “Income / (loss) from associates and joint ventures” in the statement of income. Ownership interest in other comprehensive income of subsidiaries is accounted for under “Income / (loss) of the period in other comprehensive income of subsidiaries, associates and joint ventures accounted for using the participation method”, in the statement of other comprehensive income.
Transcription into books
As of the date of issuance of these condensed separate interim financial statements, the same are in the process of being transcribed into the Books of Accounts of Banco Macro SA.
New standards adopted
New standards adopted are described in note 3 to the condensed consolidated interim financial statements.
- 89 -
NOTES TO THE CONDENSEDSEPARATE INTERIM FINANCIAL STATEMENTS AS OF SEPTEMBER 30, 2021
(Translation of Financial statements originally issued in Spanish – See Note 40)
(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of September 30, 2021, unless expressly stated)
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 statement of financial position and they are, therefore, an integral part of the total risk of the Bank. These transactions are detailed in note 4 to the condensed consolidated interim financial statements.
Risks related to the contingent transactions described above have been evaluated and are controlled within the framework of the Bank’s credit risk policy, described in note 41 to the consolidated financial statements as of December 31, 2020, already issued.
| 5. | OTHER FINANCIAL ASSETS |
|---|
The composition of the other financial assets as of September 30, 2021 and December 31, 2020 is as follows:
| Composition | 09/30/2021 | 12/31/2020 | ||||
|---|---|---|---|---|---|---|
| Sundry debtors (see note 7) | 8,699,404 | 9,762,397 | ||||
| Receivables from spot sales of foreign currency pending settlement | 6,912,519 | 11,559,730 | ||||
| Receivables from spot sales of government securities pending settlement | 1,623,894 | 758,667 | ||||
| Private securities | 33,278 | 35,855 | ||||
| Other | 340,876 | 263,915 | ||||
| Subtotal | 17,609,971 | 22,380,564 | ||||
| Less: Allowances for Expected Credit Losses (ECL) | (25,396 | ) | (25,922 | ) | ||
| Total | 17,584,575 | 22,354,642 |
Disclosures related to allowance for ECL are detailed in note 6 “Loss allowance for expected credit losses on credit exposures not measured at fair value through profit or loss”.
| 6. | LOSS ALLOWANCE FOR EXPECTED CREDIT LOSSES ON CREDIT EXPOSURES NOT MEASURED AT FAIR VALUE THROUGH PROFITOR LOSS |
|---|
In note 7 to the condensed consolidated interim financial statements, are detailed the allowances recognized by the Bank under this concept.
In addition, in exhibit R “Value adjustment for credit losses – Allowance for uncollectibility risk” are also disclosed the ECL movements by portfolio and products.
| 7. | EQUITY INSTRUMENTS AT FAIR VALUE THROUGH PROFIT OR LOSS – PRISMA MEDIOS DE PAGO SA |
|---|
The Bank’s investment in Prisma Medios de Pago SA as of September 30, 2021 and December 31, 2020 is described in note 9 to the condensed consolidated interim financial statements.
- 90 -
| NOTES TO THE CONDENSED SEPARATE INTERIM FINANCIAL STATEMENTS AS OF SEPTEMBER 30, 2021 | |
|---|---|
| (Translation of Financial statements originally issued in Spanish – See Note 40) | |
| (Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of September 30, 2021, unless expressly stated) | |
| 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 regards<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 reporting period. |
|---|---|
| - | 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 which 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 September 30, 2021 and December 31, 2020:
| Financial assets and financial liabilities measured at fair value<br><br> on a recurring basis as of September 30, 2021 | ||||||||
|---|---|---|---|---|---|---|---|---|
| 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 | 19,736,558 | 18,888,973 | 847,585 | |||||
| Derivatives financial instruments | 935 | 935 | ||||||
| Other financial assets | 33,278 | 33,278 | ||||||
| Equity instruments at fair value through profit or loss | 2,085,273 | 12,648 | 2,072,625 | |||||
| At fair value through OCI | ||||||||
| Other debt Securities | 242,637,199 | 187,239,750 | 55,397,449 | |||||
| Financial assets delivered as guarantee | 2,023,180 | 2,023,180 | ||||||
| Total | 266,516,423 | 208,165,486 | 55,397,449 | 2,953,488 | ||||
| Financial liabilities | ||||||||
| At fair value through profit or loss | ||||||||
| Derivatives financial instruments | 2,440 | 1,095 | 1,345 | |||||
| Total | 2,440 | 1,095 | 1,345 |
- 91 -
| NOTES TO THE CONDENSED SEPARATE INTERIM FINANCIAL STATEMENTS AS OF SEPTEMBER 30, 2021 | ||||||||
|---|---|---|---|---|---|---|---|---|
| (Translation of Financial statements originally issued in Spanish – See Note 40) | ||||||||
| (Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of September 30, 2021, unless expressly stated) | ||||||||
| Financial assets and financial liabilities measured at fair value<br><br> on a recurring basis as of December 31, 2020 | ||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| 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 | 72,843,222 | 72,324,912 | 518,310 | |||||
| Derivatives financial instruments | 9,905 | 9,905 | ||||||
| Other financial assets | 35,854 | 35,854 | ||||||
| Equity instruments at fair value through profit or loss | 2,277,460 | 13,324 | 2,264,136 | |||||
| At fair value through OCI | ||||||||
| Other debt Securities | 236,962,110 | 151,243,348 | 85,718,762 | |||||
| Financial assets delivered as guarantee | 952,882 | 952,882 | ||||||
| Total | 313,081,433 | 224,534,466 | 85,728,667 | 2,818,300 | ||||
| Financial liabilities | ||||||||
| At fair value through profit or loss | ||||||||
| Derivatives financial instruments | 315 | 315 | ||||||
| Total | 315 | 315 |
Below is the reconciliation between the amounts at the beginning and the end of the period for the financial assets recognized at fair value, categorized as level 3:
| As of September 30, 2021 | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| Description | Debt instruments | Other financial<br><br> assets | Equity investment at<br><br> fair value through <br><br>profit or loss | ||||||
| Amount at the beginning | 518,310 | 35,854 | 2,264,136 | ||||||
| Transfers to Level 3 | |||||||||
| Transfers for Level 3 | |||||||||
| Profit and loss | 209,226 | 2,816 | 526,121 | ||||||
| Recognition and derecognition | 306,382 | 5,555 | (19,004 | ) | |||||
| Monetary effects | (186,333 | ) | (10,947 | ) | (698,628 | ) | |||
| Amount at the end of the period | 847,585 | 33,278 | 2,072,625 | ||||||
| As of December 31, 2020 | |||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Description | Debt instruments | Other financial<br><br> assets | Equity investment at<br><br> fair value through<br><br> profit or loss | ||||||
| Amount at the beginning | 1,519,721 | 42,887 | 2,846,788 | ||||||
| Transfers to Level 3 | |||||||||
| Transfers for Level 3 | |||||||||
| Profit and loss | 284,587 | 12,972 | 183,074 | ||||||
| Recognition and derecognition | (1,084,097 | ) | (8,910 | ) | 23,435 | ||||
| Monetary effects | (201,901 | ) | (11,095 | ) | (789,161 | ) | |||
| Amount at the end of the fiscal year | 518,310 | 35,854 | 2,264,136 |
- 92 -
| NOTES TO THE CONDENSED SEPARATE INTERIM FINANCIAL STATEMENTS AS OF SEPTEMBER 30, 2021 |
|---|
| (Translation of Financial statements originally issued in Spanish – See Note 40) |
| (Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of September 30, 2021, unless expressly stated) |
In note 10 to the condensed consolidated interim financial statements, are detailed 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.
As of September 30, 2021 and December 31, 2020, the Bank has not recognized any transfers between levels 1, 2 and 3 of the fair value hierarchy.
Financial assets and liabilities not recognized at fair value
The following table shows a comparison between the fair value and the carrying amount of financial instruments not recognized at fair value as of September 30, 2021 and December 31, 2020:
| 09/30/2021 | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Composition | Carrying amount | Level 1 | Level 2 | Level 3 | Fair value | |||||
| Financial assets | ||||||||||
| Cash and deposits in banks | 161,741,706 | 161,741,706 | 161,741,706 | |||||||
| Repo transactions | 22,431,396 | 22,431,396 | 22,431,396 | |||||||
| Other financial assets | 17,551,297 | 17,551,297 | 17,551,297 | |||||||
| Loans and other financing | 310,049,053 | 284,020,007 | 284,020,007 | |||||||
| Other debt securities | 22,578,294 | 329,287 | 21,278,232 | 805,442 | 22,412,961 | |||||
| Financial assets delivered as guarantee | 16,648,529 | 16,648,529 | 16,648,529 | |||||||
| Total | 551,000,275 | 218,702,215 | 21,278,232 | 284,825,449 | 524,805,896 | |||||
| Financial liabilities | ||||||||||
| --- | --- | --- | --- | --- | --- | |||||
| Deposits | 534,030,146 | 277,113,108 | 256,765,917 | 533,879,025 | ||||||
| Repo transactions | 1,810,254 | 1,810,254 | 1,810,254 | |||||||
| Other financial liabilities | 41,889,714 | 40,340,564 | 1,549,124 | 41,889,688 | ||||||
| Financing received from the BCRA and other financial entities | 594,979 | 431,518 | 159,113 | 590,631 | ||||||
| Issued corporate bonds | 3,136,663 | 2,609,633 | 2,609,633 | |||||||
| Subordinated corporate bonds | 41,039,615 | 34,165,469 | 34,165,469 | |||||||
| Total | 622,501,371 | 319,695,444 | 38,483,339 | 256,765,917 | 614,944,700 | |||||
| 12/31/2020 | ||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Composition | Carrying amount | Level 1 | Level 2 | Level 3 | Fair value | |||||
| Financial assets | ||||||||||
| Cash and deposits in banks | 156,813,102 | 156,813,102 | 156,813,102 | |||||||
| Repo transactions | 55,042,144 | 55,042,144 | 55,042,144 | |||||||
| Other financial assets | 22,318,788 | 22,318,788 | 22,318,788 | |||||||
| Loans and other financing | 352,521,541 | 328,643,322 | 328,643,322 | |||||||
| Other debt securities | 42,618,454 | 14,462,436 | 30,418,777 | 203,146 | 45,084,359 | |||||
| Financial assets delivered as guarantee | 18,510,200 | 18,510,200 | 18,510,200 | |||||||
| Total | 647,824,229 | 267,146,670 | 30,418,777 | 328,846,468 | 626,411,915 |
- 93 -
| NOTES TO THE CONDENSED SEPARATE INTERIM FINANCIAL STATEMENTS AS OF SEPTEMBER 30, 2021 | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| (Translation of Financial statements originally issued in Spanish – See Note 40) | ||||||||||
| (Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of September 30, 2021, unless expressly stated) | ||||||||||
| 12/31/2020 | ||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Composition | Carrying amount | Level 1 | Level 2 | Level 3 | Fair value | |||||
| Financial liabilities | ||||||||||
| Deposits | 664,383,893 | 328,166,055 | 335,837,000 | 664,003,055 | ||||||
| Repo transactions | 847,183 | 847,183 | 847,183 | |||||||
| Other financial liabilities | 45,511,176 | 43,686,078 | 1,823,319 | 45,509,397 | ||||||
| Financing received from the BCRA and other financial entities | 1,258,478 | 443,568 | 801,778 | 1,245,346 | ||||||
| Issued corporate bonds | 6,747,782 | 5,643,759 | 5,643,759 | |||||||
| Subordinated corporate bonds | 46,976,966 | 39,859,873 | 39,859,873 | |||||||
| Total | 765,725,478 | 373,142,884 | 48,128,729 | 335,837,000 | 757,108,613 | |||||
| 9. | INVESTMENTS IN SUBSIDIARIES, ASSOCIATES AND JOINT ARRANGEMENTS | |||||||||
| --- | --- |
The Bank’s interests on subsidiaries, associates and joint ventures are disclosed in note 11 to the condensed consolidated interim financial statements.
| 10. | OTHER NON-FINANCIAL ASSETS |
|---|
The composition of other non-financial assets as of September 30, 2021 and December 31, 2020 is as follows:
| Composition | 09/30/2021 | 12/31/2020 | ||
|---|---|---|---|---|
| Advanced prepayments | 1,074,739 | 624,443 | ||
| Investment property (see Exhibit F) | 398,968 | 1,058,944 | ||
| Tax advances | 140,678 | 823,088 | ||
| Other | 141,477 | 197,932 | ||
| Total | 1,755,862 | 2,704,407 | ||
| 11. | RELATED PARTIES | |||
| --- | --- |
A related party is a person or entity that is related to the Bank:
| - | has control or joint control of the Bank; |
|---|---|
| - | has significant influence over the Bank; |
| --- | --- |
| - | is a member of the key management personnel of the Bank or of a parent of the Bank; |
| --- | --- |
| - | members of the same group; |
| --- | --- |
| - | one entity is an associate (or an associate of a member of a group of which the other entity is 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.
- 94 -
NOTES TO THE CONDENSEDSEPARATE INTERIM FINANCIAL STATEMENTS AS OF SEPTEMBER 30, 2021
(Translation of Financial statements originally issued in Spanish – See Note 40)
(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of September 30, 2021, unless expressly stated)
As of September 30, 2021 and December 31, 2020, amount balances related to transactions generated with related parties are as follows:
| As of September 30, 2021 | ||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Main subsidiaries | ||||||||||||||||
| Macro<br> Bank <br> Limited | Macro<br> Securities <br> SA | Macro<br> Fondos<br> SGFCISA | Argenpay<br> SAU | Associates | Key<br> management<br> personnel (1) | Other<br> related<br> parties | Total | |||||||||
| Assets | ||||||||||||||||
| Cash and deposit in banks | 791 | 791 | ||||||||||||||
| Other financial assets | 71,477 | 71,477 | ||||||||||||||
| Loans and other financing (2) | ||||||||||||||||
| Documents | 26,422 | 26,422 | ||||||||||||||
| Overdraft | 93,731 | 784,413 | 878,144 | |||||||||||||
| Credit Cards | 58,017 | 18,883 | 76,900 | |||||||||||||
| Lease | 12,620 | 12,620 | ||||||||||||||
| Personal loans | 1,478 | 1,478 | ||||||||||||||
| Mortgage loans | 235,113 | 235,113 | ||||||||||||||
| Other loans | 650,915 | 8,471 | 1,012,979 | 1,672,365 | ||||||||||||
| Other receivables for financial intermediation | 6,405 | 6,405 | ||||||||||||||
| Guarantee granted | 852,144 | 852,144 | ||||||||||||||
| Total assets | 791 | 722,392 | 396,810 | 2,713,866 | 3,833,859 | |||||||||||
| Liabilities | ||||||||||||||||
| Deposits | 5 | 3,235,209 | 157,137 | 46,602 | 44,952 | 300,117 | 814,715 | 4,598,737 | ||||||||
| Other financial liabilities | 2,120,049 | 219 | 7,004 | 2,127,272 | ||||||||||||
| Issued corporate bonds | 598,544 | 598,544 | ||||||||||||||
| Other non-financial liabilities | 13,057 | 13,057 | ||||||||||||||
| Total liabilities | 5 | 5,953,802 | 157,137 | 46,602 | 44,952 | 300,336 | 834,776 | 7,337,610 | ||||||||
| (1) | Includes close family members of the key management personnel. | |||||||||||||||
| --- | --- | |||||||||||||||
| (2) | The maximum financing amount for loans and other financing as of September 30, 2021 for Macro Securities<br>SA, Key management personnel and other related parties amounted to 971,842, 492,886 and 4,980,774, respectively. | |||||||||||||||
| --- | --- |
- 95 -
NOTES TO THE CONDENSEDSEPARATE INTERIM FINANCIAL STATEMENTS AS OF SEPTEMBER 30, 2021
(Translation of Financial statements originally issued in Spanish – See Note 40)
(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of September 30, 2021, unless expressly stated)
| As of December 31, 2020 | ||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Main subsidiaries | ||||||||||||||||
| Macro<br> Bank <br> Limited | Macro<br> Securities <br> SA | Macro<br> Fondos<br> SGFCISA | Argenpay<br> SAU | Associates | Key<br> management<br> personnel (1) | Other<br> related<br> parties | Total | |||||||||
| Assets | ||||||||||||||||
| Cash and deposit in banks | 923 | 923 | ||||||||||||||
| Repo transaction | 1,050,996 | 1,050,996 | ||||||||||||||
| Other financial assets | ||||||||||||||||
| Loans and other financing (2) | 2,093 | 2,093 | ||||||||||||||
| Documents | 44,859 | 556,622 | 601,481 | |||||||||||||
| Overdraft | 62,067 | 6,756 | 68,823 | |||||||||||||
| Lease | 1,416 | 7,153 | 8,569 | |||||||||||||
| Personal loans | 15,957 | 15,957 | ||||||||||||||
| Mortgage loans | 115,282 | 115,282 | ||||||||||||||
| Other loans | 974,835 | 521,110 | 1,495,945 | |||||||||||||
| Guarantee granted | 1,139,080 | 1,139,080 | ||||||||||||||
| Total assets | 923 | 2,027,247 | 238,165 | 2,232,814 | 4,499,149 | |||||||||||
| Liabilities | ||||||||||||||||
| Deposits | 10 | 919,563 | 178,886 | 78,033 | 59,356 | 680,271 | 1,087,117 | 3,003,236 | ||||||||
| Other financial liabilities | 21,386 | 204 | 11,459 | 33,049 | ||||||||||||
| Other non-financial liabilities | 15,645 | 15,645 | ||||||||||||||
| Total liabilities | 10 | 940,949 | 178,886 | 78,033 | 59,356 | 680,475 | 1,114,221 | 3,051,930 | ||||||||
| (1) | Includes close family members of the key management personnel. | |||||||||||||||
| --- | --- | |||||||||||||||
| (2) | The maximum financing amount for loans and other financing as of December 31, 2020 for Macro Securities<br>SA, Key management personnel and other related parties amounted to 979,231, 1,352,857 and 6,400,520, respectively. | |||||||||||||||
| --- | --- |
Profit or loss related to transactions generated during the nine-month periods ended September 30, 2021 and 2020 with related parties are as follows:
| As of September 30, 2021 | ||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Main subsidiaries | ||||||||||||||||||||
| Macro<br> Bank <br> Limited | Macro<br> Securities <br> SA | Macro<br> Fondos<br> SGFCISA | Argenpay<br> SAU | Associates | Key<br> management<br> personnel (1) | Other<br> related<br> parties | Total | |||||||||||||
| Income / (loss) | ||||||||||||||||||||
| Interest income | 2,517 | 105,107 | 901,257 | 1,008,881 | ||||||||||||||||
| Interest expense | (3,822 | ) | (13,011 | ) | (26,019 | ) | (57,018 | ) | (99,870 | ) | ||||||||||
| Commissions income | 13,743 | 83 | 139 | 12 | 14,001 | 27,978 | ||||||||||||||
| Commissions expense | (21 | ) | (159 | ) | (180 | ) | ||||||||||||||
| Other operating income | 2 | 6,478 | 22 | 6,502 | ||||||||||||||||
| Administrative expense | (171,200 | ) | (171,200 | ) | ||||||||||||||||
| Other operating expense | (52,542 | ) | (52,542 | ) | ||||||||||||||||
| Income / (loss) | 2 | 18,916 | 83 | (12,872 | ) | 79,079 | 634,361 | 719,569 | ||||||||||||
| (1) | Includes close family members of the key management personnel. | |||||||||||||||||||
| --- | --- |
- 96 -
NOTES TO THE CONDENSEDSEPARATE INTERIM FINANCIAL STATEMENTS AS OF SEPTEMBER 30, 2021
(Translation of Financial statements originally issued in Spanish – See Note 40)
(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of September 30, 2021, unless expressly stated)
| As of September 30, 2020 | |||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Main<br> subsidiaries (1) | |||||||||||||||||||||
| Macro<br> Bank <br> Limited | Macro<br> Securities <br> SA | Macro<br> Fondos<br> SGFCISA | Argenpay<br> SAU | Associates | Key<br> management<br> personnel (2) | Other<br> related<br> parties | Total | ||||||||||||||
| Income / (loss) | |||||||||||||||||||||
| Interest income | 3,505 | 70,449 | 665,130 | 739,084 | |||||||||||||||||
| Interest expense | (7,877 | ) | (2,156,865 | ) | (55,533 | ) | (2,220,275 | ) | |||||||||||||
| Commissions income | 9,860 | 311 | 84 | 40 | 6,526 | 16,821 | |||||||||||||||
| Commissions expense | (186 | ) | (322 | ) | (508 | ) | |||||||||||||||
| Income from measurement of financial instruments at fair value through profit or loss | 5,689 | 5,689 | |||||||||||||||||||
| Other operating income | 5 | 2 | 26 | 33 | |||||||||||||||||
| Allowance for loan losses | (12,219 | ) | (12,219 | ) | |||||||||||||||||
| Administrative expense | (165,244 | ) | (165,244 | ) | |||||||||||||||||
| Other operating expense | (89,629 | ) | (89,629 | ) | |||||||||||||||||
| Income / (loss) | 5 | 1,146 | 311 | 2 | (7,793 | ) | (2,086,562 | ) | 366,643 | (1,726,248 | ) | ||||||||||
| (1) | Includes close family members of the key management personnel. | ||||||||||||||||||||
| --- | --- |
Transactions generated by the Bank with related parties for transactions arranged within the course of the usual and ordinary course of business were performed in normal market conditions, both as to interest rates and prices and as to the required guarantees.
The Bank does not have loans granted to Directors and other key management personnel secured with shares.
Total remunerations received as salary and bonus by the key management personnel as of September 30, 2021 and 2020, totaled 358,820 and 287,706, respectively.
In addition, fees received by the Directors as of September 30, 2021 and 2020 amounted to 889,699 and 1,930,499, respectively.
Additionally, the composition of the Board of Directors and key management personnel is as follows:
| Composition | 09/30/2021 | 12/31/2020 | ||
|---|---|---|---|---|
| Board of Directors | 12 | 13 | ||
| Senior managers of the key management personnel | 11 | 11 | ||
| Total | 23 | 24 |
- 97 -
NOTES TO THE CONDENSEDSEPARATE INTERIM FINANCIAL STATEMENTS AS OF SEPTEMBER 30, 2021
(Translation of Financial statements originally issued in Spanish – See Note 40)
(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of September 30, 2021, unless expressly stated)
| 12. | OTHER FINANCIAL LIABILITIES |
|---|
The composition of other financial liabilities as of September 30, 2021 and December 31, 2020 is as follows:
| Composition | 09/30/2021 | 12/31/2020 | ||
|---|---|---|---|---|
| Credit and debit card settlement - due to merchants | 23,504,884 | 23,561,639 | ||
| Amounts payable for spot purchases of foreign currency pending settlement | 7,935,607 | 11,572,905 | ||
| Payment orders pending settlement foreign exchange | 3,193,427 | 4,208,861 | ||
| Amounts payable for spot purchases of government securities pending settlement | 2,160,038 | 597,365 | ||
| Collections and other transactions on account and behalf others | 1,933,973 | 1,935,961 | ||
| Finance leases liabilities | 1,405,619 | 1,604,291 | ||
| Other | 1,756,166 | 2,030,154 | ||
| Total | 41,889,714 | 45,511,176 | ||
| 13. | 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 September 30, 2021 and December 31, 2020.
The expected terms to settle these obligations are detailed in note 15 to the condensed consolidated interim financial statements.
| 14. | OTHER NON-FINANCIAL LIABILITIES |
|---|
The composition of other non-financial liabilities as of September 30, 2021 and December 31, 2020 is as follows:
| Composition | 09/30/2021 | 12/31/2020 | ||
|---|---|---|---|---|
| Dividends payables (see note 35) | 26,580,415 | 22,707,610 | ||
| Salaries, bonuses and payroll taxes payables | 7,119,221 | 6,615,503 | ||
| Withholdings | 5,097,823 | 5,644,420 | ||
| Taxes payables | 2,706,531 | 2,449,340 | ||
| Miscellaneous payables | 1,039,707 | 1,920,959 | ||
| Retirement pension payment orders pending settlement | 368,222 | 560,889 | ||
| Fees payables | 65 | 652,448 | ||
| Other | 576,321 | 818,278 | ||
| Total | 43,488,305 | 41,369,447 |
- 98 -
NOTES TO THE CONDENSEDSEPARATE INTERIM FINANCIAL STATEMENTS AS OF SEPTEMBER 30, 2021
(Translation of Financial statements originally issued in Spanish – See Note 40)
(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of September 30, 2021, unless expressly stated)
| 15. | ANALYSIS OF FINANCIAL ASSETS TO BE RECOVERED AND FINANCIAL LIABILITIES TO BE SETTLED |
|---|
The following tables show the analysis of financial assets and liabilities the Bank expects to recover and settle as of September 30, 2021 and December 31, 2020:
| 09/30/2021 | Without due<br> date | Total up to 12<br> months | Total over 12<br> months | |||
|---|---|---|---|---|---|---|
| Assets | ||||||
| Cash and deposits in banks | 161,741,706 | |||||
| Debt securities at fair value through profit or loss | 14,881,394 | 4,855,164 | ||||
| Derivative financial instruments | 935 | |||||
| Repo transactions | 22,431,396 | |||||
| Other financial assets | 1,671,958 | 11,264,542 | 4,648,075 | |||
| Loans and other financing (1) | 61,842 | 203,543,642 | 106,443,569 | |||
| Other debt securities | 257,610,365 | 7,605,128 | ||||
| Financial assets delivered as guarantee | 16,648,529 | 2,023,180 | ||||
| Equity instruments at fair value through profit or loss | 2,085,273 | |||||
| Total assets | 182,209,308 | 511,755,454 | 123,551,936 | |||
| Liabilities | ||||||
| Deposits | 271,734,236 | 262,285,769 | 10,141 | |||
| Derivative financial instruments | 2,440 | |||||
| Repo transactions | 1,810,254 | |||||
| Other financial liabilities | 40,997,620 | 892,094 | ||||
| Financing received from the BCRA and other financial institutions | 586,816 | 8,163 | ||||
| Issued corporate bonds | 3,136,663 | |||||
| Subordinated corporate bonds | 1,545,615 | 39,494,000 | ||||
| Total liabilities | 271,734,236 | 310,365,177 | 40,404,398 | |||
| 12/31/2020 | Without due <br><br>date | Total up to 12<br><br> months | Total over 12<br><br> months | |||
| --- | --- | --- | --- | --- | --- | --- |
| Assets | ||||||
| Cash and deposits in banks | 156,813,102 | |||||
| Debt securities at fair value through profit or loss | 69,987,962 | 2,855,260 | ||||
| Derivative financial instruments | 9,905 | |||||
| Repo transactions | 55,042,144 | |||||
| Other financial assets | 1,987,781 | 14,634,165 | 5,732,696 | |||
| Loans and other financing (1) | 857,284 | 243,987,890 | 107,676,367 | |||
| Other debt securities | 248,819,495 | 30,761,069 | ||||
| Financial assets delivered as guarantee | 18,510,200 | 952,882 | ||||
| Equity instruments at fair value through profit or loss | 2,277,460 | |||||
| Total assets | 180,445,827 | 633,434,443 | 147,025,392 |
- 99 -
NOTES TO THE CONDENSEDSEPARATE INTERIM FINANCIAL STATEMENTS AS OF SEPTEMBER 30, 2021
(Translation of Financial statements originally issued in Spanish – See Note 40)
(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of September 30, 2021, unless expressly stated)
| 12/31/2020 | Without due<br> <br>date | Total up to 12 months | Total over 12 months | |||
|---|---|---|---|---|---|---|
| Liabilities | ||||||
| Deposits | 321,719,225 | 342,635,332 | 29,336 | |||
| Derivative financial instruments | 315 | |||||
| Repo transactions | 847,183 | |||||
| Other financial liabilities | 44,447,287 | 1,063,889 | ||||
| Financing received from the BCRA and other financial institutions | 1,205,651 | 52,827 | ||||
| Issued corporate bonds | 3,491,339 | 3,256,443 | ||||
| Subordinated corporate bonds | 879,668 | 46,097,298 | ||||
| Total liabilities | 321,719,225 | 393,506,775 | 50,499,793 | |||
| (1) | The amounts included in “without due date”, are related to the non-performing portfolio. | |||||
| --- | --- | |||||
| 16. | DISCLOSURES BY OPERATING SEGMENT | |||||
| --- | --- |
The Bank has an approach of its banking business that is described in note 18 to the condensed consolidated interim financial statements.
| 17. | INCOME TAX |
|---|---|
| a) | Inflation adjustment and tax rate on income tax |
| --- | --- |
In note 19 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 separate interim financial statements are as follows: | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| 09/30/2021 | 09/30/2020 | ||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Description | Quarter <br><br>ended <br><br>09/30/2021 | Accumulated<br><br> from <br><br>beginning of <br><br>year up to <br><br>09/30/2021 | Quarter <br><br>ended <br><br>09/30/2020 | Accumulated<br><br> from beginning <br><br>of year up to <br><br>09/30/2020 | |||||||
| Current income tax expense (1) | 1,937,822 | 4,310,913 | 6,256,663 | 10,977,976 | |||||||
| (Income) / Loss for deferred income taxes | (2,085,405 | ) | (804,108 | ) | (2,125,866 | ) | 3,590,650 | ||||
| Monetary effects | 284,538 | 691,384 | 505,577 | 1,014,150 | |||||||
| Income tax loss recorded in the statement of income | 136,955 | 4,198,189 | 4,636,374 | 15,582,776 | |||||||
| Income tax loss recorded in other comprehensive income | 121,037 | 712,318 | 71,859 | 187,652 | |||||||
| Total | 257,992 | 4,910,507 | 4,708,233 | 15,770,428 |
(1) See the following paragraph of this note.
- 100 -
NOTESTO THE CONDENSED SEPARATE INTERIM FINANCIAL STATEMENTS AS OF SEPTEMBER 30, 2021
(Translation of Financial statements originally issued in Spanish – See Note 40)
(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of September 30, 2021, unless expressly stated)
As decided by the Board of Directors in the meeting dated May 11, 2020, considering certain case-law on the subject assessed by its legal and tax advisors, on May 26, 2020, 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 19 to the condensed consolidated interim financial statements). 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 an 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 amount) 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.
On the other hand, 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). Both cases are currently at the trial stage.
With respect to 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.
| 18. | COMMISSIONS INCOME | |||||||
|---|---|---|---|---|---|---|---|---|
| 09/30/2021 | 09/30/2020 | |||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Composition | Quarter ended <br><br>09/30/2021 | Accumulated <br><br>from beginning <br><br>of year up to <br><br>09/30/2021 | Quarter<br><br>ended<br><br> 09/30/2020 | Accumulated<br><br> from beginning <br><br>of year up to <br><br>09/30/2020 | ||||
| Performance obligations satisfied at a point in time | ||||||||
| Commissions related to obligations | 4,823,418 | 13,666,509 | 4,599,403 | 13,493,392 | ||||
| Commissions related to credit cards | 2,815,432 | 8,053,240 | 2,955,964 | 8,575,956 | ||||
| Commissions related to insurance | 500,931 | 1,535,835 | 548,500 | 1,631,858 | ||||
| Commissions related to trading and foreign exchange transactions | 210,220 | 579,549 | 225,045 | 528,614 | ||||
| Commissions related to securities value | 65,434 | 187,164 | 50,754 | 137,539 | ||||
| Commissions related to loans and other financing | 34,285 | 96,587 | 42,219 | 206,503 | ||||
| Commissions related to financial guarantees granted | 981 | 2,355 | 157 | 690 |
- 101 -
NOTESTO THE CONDENSED SEPARATE INTERIM FINANCIAL STATEMENTS AS OF SEPTEMBER 30, 2021
(Translation of Financial statements originally issued in Spanish – See Note 40)
(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of September 30, 2021, unless expressly stated)
| 09/30/2021 | 09/30/2020 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Composition (contd.) | Quarter<br> ended<br> 09/30/2021 | Accumulated<br> from<br> beginning of<br> year up to<br> 09/30/2021 | Quarter<br> ended <br> 09/30/2020 | Accumulated<br> from<br> beginning of<br> year up to<br> 09/30/2020 | ||||||
| Performance obligations satisfied over certain time period | ||||||||||
| Commissions related to credit cards | 82,059 | 256,985 | 120,039 | 369,205 | ||||||
| Commissions related to trading and foreign exchange transactions | 8,062 | 27,317 | 22,416 | 48,517 | ||||||
| Commissions related to loans and other financing | 1,843 | 2,179 | 285 | 898 | ||||||
| Commissions related to obligations | 366 | 795 | 39 | 1,175 | ||||||
| Commissions related to financial guarantees granted | 86 | 1 | ||||||||
| Total | 8,543,031 | 24,408,601 | 8,564,821 | 24,994,348 | ||||||
| 19. | DIFFERENCES IN QUOTED PRICES OF GOLD AND FOREIGN CURRENCY | |||||||||
| --- | --- | |||||||||
| 09/30/2021 | 09/30/2020 | |||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | ||
| Composition | Quarter<br> ended<br> 09/30/2021 | Accumulated<br> from beginning<br> of year up to <br> 09/30/2021 | Quarter<br> ended<br> 09/30/2020 | Accumulated<br> from beginning<br> of year up to<br> 09/30/2020 | ||||||
| Translation of foreign currency assets and liabilities into pesos | 398,295 | 2,258,566 | 1,074,337 | 2,839,708 | ||||||
| Income from foreign currency exchange | 132,553 | 351,922 | 696,462 | 1,028,685 | ||||||
| Total | 530,848 | 2,610,488 | 1,770,799 | 3,868,393 | ||||||
| 20. | OTHER OPERATING INCOME | |||||||||
| --- | --- | |||||||||
| 09/30/2021 | 09/30/2020 | |||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Composition | Quarter<br> ended<br> 09/30/2021 | Accumulated<br> from beginning<br> of year up to<br> 09/30/2021 | Quarter<br> ended<br> 09/30/2020 | Accumulated<br> from beginning<br> of year up to<br> 09/30/2020 | ||||||
| Services | 702,267 | 1,681,376 | 788,208 | 2,479,026 | ||||||
| Adjustments and interest from other receivables | 207,403 | 812,349 | 237,586 | 746,979 | ||||||
| Other receivables for financial intermediation | 128,415 | 698,828 | 282,189 | 333,951 | ||||||
| Adjustments from other receivables with CER clauses | 69,553 | 244,891 | 48,141 | 168,827 | ||||||
| Sale of property, plant and equipment | (6 | ) | 2,236 | 5,716 | 6,458 | |||||
| For derecognition or substantial modification of financial liabilities | 4,389 | 314,598 | ||||||||
| Initial recognition of loans | (18,172 | ) | 11,216 | |||||||
| Other | 224,085 | 691,542 | 190,868 | 731,891 | ||||||
| Total | 1,331,717 | 4,131,222 | 1,538,925 | 4,792,946 |
- 102 -
NOTESTO THE CONDENSED SEPARATE INTERIM FINANCIAL STATEMENTS AS OF SEPTEMBER 30, 2021
(Translation of Financial statements originally issued in Spanish – See Note 40)
(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of September 30, 2021, unless expressly stated)
| 21. | EMPLOYEE BENEFITS | |||||||
|---|---|---|---|---|---|---|---|---|
| 09/30/2021 | 09/30/2020 | |||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Composition | Quarter<br> ended<br> 09/30/2021 | Accumulated<br> from beginning<br> of year up to<br> 09/30/2021 | Quarter<br> ended<br> 09/30/2020 | Accumulated<br> from beginning<br> of year up to<br> 09/30/2020 | ||||
| Remunerations | 6,239,014 | 19,069,313 | 6,950,840 | 19,946,142 | ||||
| Payroll taxes | 1,438,246 | 4,345,557 | 1,541,595 | 4,417,380 | ||||
| Compensations and bonuses to employees | 961,807 | 2,515,114 | 591,087 | 1,708,196 | ||||
| Employee services | 252,516 | 643,687 | 223,080 | 551,201 | ||||
| Total | 8,891,583 | 26,573,671 | 9,306,602 | 26,622,919 | ||||
| 22. | ADMINISTRATIVE EXPENSES | |||||||
| --- | --- | |||||||
| 09/30/2021 | 09/30/2020 | |||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Composition | Quarter <br> ended <br> 09/30/2021 | Accumulated<br> from beginning<br> of year up to<br> 09/30/2021 | Quarter<br> ended<br> 09/30/2020 | Accumulated<br> from beginning<br> of year up to<br> 09/30/2020 | ||||
| Maintenance, conservation and repair expenses | 765,462 | 2,175,781 | 767,403 | 2,208,109 | ||||
| Armored truck, documentation and events | 688,187 | 1,881,257 | 733,149 | 2,068,463 | ||||
| Taxes | 657,986 | 1,948,873 | 608,919 | 1,843,236 | ||||
| Security services | 468,623 | 1,380,277 | 472,091 | 1,472,237 | ||||
| Electricity and communications | 450,971 | 1,403,829 | 519,197 | 1,592,972 | ||||
| Software | 371,666 | 1,092,856 | 370,084 | 1,092,564 | ||||
| Other fees | 351,343 | 1,056,002 | 299,611 | 883,417 | ||||
| Advertising and publicity | 219,432 | 473,544 | 112,756 | 346,494 | ||||
| Fees to directors and syndics | 107,111 | 314,387 | 388,934 | 1,353,724 | ||||
| Insurance | 72,185 | 185,348 | 64,099 | 167,903 | ||||
| Representation, travel and transportation expenses | 47,898 | 123,683 | 33,463 | 117,570 | ||||
| Stationery and office supplies | 29,501 | 80,820 | 32,327 | 95,739 | ||||
| Leases | 20,807 | 79,492 | 14,305 | 97,743 | ||||
| Hired administrative services | 2,387 | 7,083 | 2,527 | 4,441 | ||||
| Other | 171,682 | 484,445 | 706,602 | 1,041,649 | ||||
| Total | 4,425,241 | 12,687,677 | 5,125,467 | 14,386,261 |
- 103 -
NOTESTO THE CONDENSED SEPARATE INTERIM FINANCIAL STATEMENTS AS OF SEPTEMBER 30, 2021
(Translation of Financial statements originally issued in Spanish – See Note 40)
(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of September 30, 2021, unless expressly stated)
| 23. | OTHER OPERATING EXPENSES | ||||||||
|---|---|---|---|---|---|---|---|---|---|
| 09/30/2021 | 09/30/2020 | ||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Composition | Quarter<br> ended<br> 09/30/2021 | Accumulated<br> from beginning<br> of year up to<br> 09/30/2021 | Quarter<br> ended<br> 09/30/2020 | Accumulated<br> from beginning<br> of year up to<br> 09/30/2020 | |||||
| Turnover tax | 3,980,652 | 12,112,868 | 3,776,564 | 11,787,175 | |||||
| For credit cards | 1,854,491 | 4,788,163 | 1,705,467 | 4,703,708 | |||||
| Charges for other provisions | 334,388 | 1,014,455 | 399,395 | 1,240,222 | |||||
| Deposit guarantee fund contributions | 224,729 | 724,925 | 280,955 | 725,421 | |||||
| Taxes | 81,362 | 287,746 | 184,895 | 594,213 | |||||
| Interest on lease liabilities | 50,928 | 152,706 | 59,653 | 188,726 | |||||
| Insurance claims | 19,194 | 47,600 | 19,484 | 71,630 | |||||
| Donations | 6,801 | 8,737 | 510 | 224,245 | |||||
| Loss from sale or impairment of investments in properties and other non-financial assets | (12,931 | ) | 6,144 | 3,727 | 3,727 | ||||
| For administrative, disciplinary and criminal penalties | 37,775 | ||||||||
| Other | 940,121 | 2,742,809 | 519,108 | 1,530,169 | |||||
| Total | 7,479,735 | 21,923,928 | 6,949,758 | 21,069,236 | |||||
| 24. | 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 | 09/30/2021 | 12/31/2020 | 09/30/2020 | 12/31/2019 | ||||
|---|---|---|---|---|---|---|---|---|
| Cash and deposits in banks | 161,741,706 | 156,813,102 | 155,071,778 | 181,602,318 | ||||
| Debt Securities at fair value through profit or loss | 68,142 | |||||||
| Other debt securities | 130,383,025 | 176,231,595 | 192,776,483 | 85,642,881 | ||||
| Total | 292,192,873 | 333,044,697 | 347,848,261 | 267,245,199 |
- 104 -
NOTESTO THE CONDENSED SEPARATE INTERIM FINANCIAL STATEMENTS AS OF SEPTEMBER 30, 2021
(Translation of Financial statements originally issued in Spanish – See Note 40)
(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of September 30, 2021, unless expressly stated)
| 25. | CAPITAL STOCK |
|---|
Note 27 to the condensed consolidated interim financial statements presents the changes in the Bank’s capital stock.
| 26. | DEPOSIT GUARANTEE INSURANCE |
|---|
Note 29 to the condensed consolidated interim financial statements describes the Deposit Guarantee Insurance System and the scope thereof.
Banco Macro SA holds an 8.4180% interest in the capital stock according to the percentages disclosed by BCRA Communiqué “B” 12152 issued on April 14, 2021.
| 27. | RESTRICTED ASSETS |
|---|
As of September 30, 2021 and December 31, 2020 the following Bank’s assets are restricted:
| Item | 09/30/2021 | 12/31/2020 | ||
|---|---|---|---|---|
| Debt securities at fair value through profit or loss and other debt securities | ||||
| · Federal<br> Government Treasury Bonds in pesos adjusted by CER 1.30% maturity 09/20/2022 as of September 30, 2021 and Federal Government<br> Treasury letters at discount in pesos maturity 01/29/2021 as of December 31, 2020, securing the transaction of MAE Futuro<br> Garantizado CPC2. | 353,056 | 26,844 | ||
| · Discount bonds in pesos regulated by Argentine legislation, maturing 2033 for minimum statutory guarantee account required for Agents to act in the new categories contemplated under Resolution No. 622/2013, as amended, of the CNV. | 41,045 | 45,095 | ||
| · Federal Government Treasury Bonds in pesos adjusted by CER 1.40% maturity 03/27/2023 as of September 30, 2021 and Federal Government Treasury Bonds in pesos adjusted by CER 1%, maturing 2021, securing the sectorial Credit Program of the Province of San Juan, production investment financing fund. | 38,951 | 83,791 | ||
| · Federal Government Treasury Bonds in pesos adjusted by CER 1%, maturing 2021 securing the regional economies Competitiveness Program – IDB loan No. 3174/OC-AR. | 15,746 | 53,918 | ||
| · Federal Government Treasury Bonds in pesos adjusted by CER 1.40% maturity 03/27/2023 as of September 30, 2021 and Federal Government Treasury Bonds in pesos adjusted by CER 1%, maturing 2021 for the contribution to the Guarantee Fund II in BYMA according to section 45 Law 26831 and supplementary regulations established by CNV standards (NT 2013, as amended). | 6,630 | 4,372 | ||
| · Discount bonds in pesos regulated by Argentine legislation, maturing 2033 used as security in favor of Sedesa (1). | 200,586 | |||
| Subtotal debt securities at fair value through profit or loss and other debt securities | 455,428 | 414,606 | ||
| Other financial assets | ||||
| · Sundry debtors – attachment within the scope of the claim filed by the DGR against the CABA for differences on turnover tax. | 827 | 1,133 | ||
| Subtotal Other financial assets | 827 | 1,133 | ||
| Loans and other financing – non-financial private sector and foreign residents | ||||
| · Interests derived from contributions made as contributing partner (2) | 500,000 | 356,091 | ||
| Subtotal loans and other financing | 500,000 | 356,091 |
- 105 -
NOTES TO THE CONDENSEDSEPARATE INTERIM FINANCIAL STATEMENTS AS OF SEPTEMBER 30, 2021
(Translation of Financial statements originally issued in Spanish – See Note 40)
(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of September 30, 2021, unless expressly stated)
| Item | 09/30/2021 | 12/31/2020 | |||
|---|---|---|---|---|---|
| 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. | 14,639,772 | 16,490,757 | ||
| · | For securities forward contracts | 2,023,180 | 952,882 | ||
| · | Guarantee deposits related to credit and debit card transactions | 1,758,404 | 1,804,926 | ||
| · | Other guarantee deposits | 250,353 | 214,517 | ||
| Subtotal Financial assets delivered as a guarantee | 18,671,709 | 19,463,082 | |||
| Other non-financial assets | |||||
| · | Real property related to a call option sold. | 295,304 | 296,404 | ||
| Subtotal other non-financial assets | 295,304 | 296,404 | |||
| Total | 19,923,268 | 20,531,316 | |||
| (1) | As replacement for the preferred shares of former Nuevo Banco Bisel SA to secure to Sedesa the price payment<br>and the fulfillment of all the obligations assumed in the purchase and sale agreement dated May 28, 2007, maturing on August 11,<br>2021. As of the date of issuance of these condensed separate interim financial statements, the pledge over the discount bonds in pesos<br>regulated by Argentine legislation was lifted. | ||||
| --- | --- | ||||
| (2) | As of September 30, 2021 and December 31, 2020 it is related to the risk fund Fintech SGR and<br>Garantizar SGR. In order to keep tax benefits related to these contributions, they must be maintained between two and three years from<br>the date they were made. | ||||
| --- | --- |
Moreover, on October 1, 2021 the Bank exercised the call option which gives right to increase up to 24.99% the Bank’s interest in the capital stock of Fintech SGR. See also note 1.
| 28. | TRUST ACTIVITIES |
|---|
Note 31 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:
| 28.1 | Financial trusts for investment purposes |
|---|
As of September 30, 2021 and December 31, 2020 the debt securities with investment purposes and certificate of participation in financial trusts total 347,621 and 779,237, 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.
| 28.2 | Trusts created using financial assets transferred by the Bank (Securitization) |
|---|
As of September 30, 2021 and December 31, 2020, considering the latest available accounting information as of the date of these condensed separate interim financial statements, the assets managed through Macro Fiducia SA of this type of trusts amount to 9,604 and 9,095, respectively.
| 28.3 | Trusts guaranteeing loans granted by the Bank |
|---|
As of September 30, 2021 and December 31, 2020, considering the latest available accounting information as of the date of these condensed separate interim financial statements, the assets managed by the Bank amount to 2,027,665 and 2,823,583, respectively.
- 106 -
NOTES TO THE CONDENSEDSEPARATE INTERIM FINANCIAL STATEMENTS AS OF SEPTEMBER 30, 2021
(Translation of Financial statements originally issued in Spanish – See Note 40)
(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of September 30, 2021, unless expressly stated)
| 28.4 | Trusts in which the Bank acts as Trustee (Management) |
|---|
As of September 30, 2021 and December 31, 2020, considering the latest available accounting information as of the date of these condensed separate interim financial statements, the assets managed by the Bank amount to 2,914,809 and 3,259,560, respectively.
| 29. | COMPLIANCE WITH CNV REGULATIONS |
|---|
Considering Banco Macro SA’s current operations, and according to the different categories of agents established by CNV rules (as per General Resolution 622/2013, as amended), the Bank is registered with this agency as Agent for the Custody of Collective Investment Products of Mutual Funds (AC PIC FCI, for their acronyms in Spanish) – Depositary Company, comprehensive clearing and settlement agent and trading agent (ALyC and AN – comprehensive, for their acronyms in Spanish), financial trustee Agent (FF, for its acronym in Spanish) and Guarantee Entity (in the process of being registered). Note 32.3 to the condensed consolidated interim financial statements describes the number of shares subscribed by third parties and the assets held by the Bank in its capacity as depositary company.
Additionally, the Bank’s shareholders’ equity as of September 30, 2021 stated in Unit of Purchasing Power (UVA, for its acronym in Spanish) amounted to 2,330,404,721 and exceeds the minimum amount required by this for the different categories of agents in which the Bank is registered, amounting to 1,420,350 UVAs as of that date, and the minimum statutory guarantee account required of 710,175 UVAs, which the Bank paid-in with government securities as described in note 27 and the cash deposits in BCRA accounts 000285 and 80285 belonging to the Bank.
In addition, note 32.2 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.
| 30. | ACCOUNTING ITEMS THAT IDENTIFY THE COMPLIANCE WITH MINIMUM CASH REQUIREMENTS |
|---|
The items recognized by the Bank to constitute the minimum cash requirement effective for September 2021 are described in note 33 to the condensed consolidated interim financial statements.
| 31. | PENALTIES APPLIED TO THE ENTITY AND SUMMARY PROCEEDINGS INITIATED BY THE BCRA |
|---|
Note 34 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 BCRA. |
|---|---|
| - | Penalties applied by the BCRA. |
| --- | --- |
| - | Penalties applied by the UIF. |
| --- | --- |
The Bank’s Management and its legal counsel consider no further significant accounting effects, other than those previous mentioned, should be recorded or disclosed.
| 32. | CORPORATE BONDS ISSUANCE |
|---|
The corporate bonds liabilities recorded by the Bank are as follows:
| Corporate Bonds | Original value | Residual face <br><br>value as of <br><br>09/30/2021 | 09/30/2021 | 12/31/2020 | ||||
|---|---|---|---|---|---|---|---|---|
| Subordinated Resettable – Class A | U$S | 400,000,000 | U$S | 400,000,000 | 41,039,615 | 46,976,966 | ||
| Non-subordinated – Class B | $ | 4,620,570,000 | $ | 2,889,191,000 | 3,136,663 | 3,329,205 | ||
| Non-subordinated – Class C | $ | 3,207,500,000 | 3,418,577 | |||||
| Total | 44,176,278 | 53,724,748 |
- 107 -
NOTES TO THE CONDENSEDSEPARATE INTERIM FINANCIAL STATEMENTS AS OF SEPTEMBER 30, 2021
(Translation of Financial statements originally issued in Spanish – See Note 40)
(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of September 30, 2021, unless expressly stated)
Note 35 to the condensed consolidated interim financial statements describes liabilities for corporate bonds recognized by the Bank.
| 33. | OFF BALANCE SHEET TRANSACTIONS |
|---|
In addition to note 4, the Bank recognizes different off balance sheet transactions, pursuant to the BCRA standards. Below are the amounts of the main off balance sheet transactions as of September 30, 2021 and December 31, 2020:
| Item | 09/30/2021 | 12/31/2020 | ||
|---|---|---|---|---|
| Custody of government and private securities and other assets held by third parties | 262,332,658 | 218,041,276 | ||
| Preferred and other collaterals received from customers (1) | 100,632,436 | 115,696,461 | ||
| Outstanding checks not yet paid | 10,928,325 | 10,321,367 | ||
| Checks already deposited and pending clearance | 8,236,800 | 5,230,242 | ||
| (1) | Related to collaterals used to secure loans transactions and other financing, under the applicable rules in force in this matter. | |||
| --- | --- | |||
| 34. | TAX AND OTHER CLAIMS | |||
| --- | --- |
34.1. Tax claims
Note 37.1 to the condensed consolidated interim financial statements describes the most relevant claims pending resolution and filed by Federal Public Revenue Agency AFIP and the tax authorities of the relevant jurisdiction.
The Bank’s Management and its legal counsel consider no further significant accounting effects could arise from the final outcome of the above mentioned proceedings other than those disclosed in these condensed separate interim financial statements.
34.2. Other claims
Note 37.2. to the condensed consolidated interim financial statements describes the most relevant claims pending resolution and filed by the different consumer´s associations.
The Bank’s Management and its legal counsel consider no further significant accounting effects could arise from the final outcome of the above mentioned proceedings other than those disclosed in these condensed separate interim financial statements.
| 35. | RESTRICTION ON DIVIDENDS DISTRIBUTION |
|---|
Note 38 to the condensed consolidated interim financial statements describes the main legal provisions regulating the restriction on profit distribution.
| 36. | CAPITAL MANAGEMENT, CORPORATE GOVERNANCE TRANSPARENCY POLICY AND RISK MANAGEMENT |
|---|
Note 39 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.
- 108 -
NOTES TO THE CONDENSEDSEPARATE INTERIM FINANCIAL STATEMENTS AS OF SEPTEMBER 30, 2021
(Translation of Financial statements originally issued in Spanish – See Note 40)
(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of September 30, 2021, unless expressly stated)
| 37. | CHANGES IN THE ARGENTINE MACROECONOMIC ENVIRONMENT AND FINANCIAL AND CAPITAL MARKET |
|---|
The international and domestic macroeconomics environments in which the Bank operates, and its impacts are described in note 40 to the condensed consolidated interim financial statements.
| 38. | EFFECTS OF THE CORONAVIRUS (COVID-19) OUTBREAK |
|---|
In early March 2020, the World Health Organization recognized Coronavirus (Covid-19) as a pandemic. This emergency situation over public health was worldwide expanded and several countries have taken different measures to contain the effects. This situation and the measures adopted have materially affected the international economy activity with different impacts on several countries and business lines and are detailed in note 41 to the condensed consolidated interim financial statements.
| 39. | EVENTS AFTER REPORTING PERIOD |
|---|
No other significant events occurred between the end of the reporting period and the issuance of these condensed separate interim financial statements that may materially affect the financial position or the profit and loss of the period, not disclosed in these condensed separate interim financial statements.
| 40. | ACCOUNTING PRINCIPLES – EXPLANATION ADDED FOR TRANSLATION INTO ENGLISH |
|---|
These condensed separate interim financial statements are presented in accordance with the accounting framework established by the BCRA, as mention in note 3. These accounting standards may not conform with accounting principles generally accepted in other countries.
| - 109 - | Delfín Jorge Ezequiel Carballo<br> Chairperson |
|---|
EXHIBIT A
DETAIL OF GOVERNMENT AND PRIVATE SECURITIES
AS OF SEPTEMBER 30, 2021 AND DECEMBER 31, 2020
(Translation of the Financial statements originally issued in Spanish – See Note 40)
(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of September 30, 2021, except that indicated otherwise)
| Holdings | Position | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 09/30/2021 | 12/31/2020 | 09/30/2021 | ||||||||||||
| Name | Identification | Fair<br><br> Value | Fair<br><br> value<br> level | Book<br><br> amounts | Book<br><br> amounts | Position<br><br> without<br> options | Options | Final<br> <br> position | ||||||
| DEBT SECURITIES AT FAIR VALUE<br> THROUGH PROFIT OR LOSS | ||||||||||||||
| - Local | ||||||||||||||
| Government securities | ||||||||||||||
| Federal government<br> treasury bonds in pesos BADLAR +200 PB - Maturity: 04-03-2022 | 5480 | 1 | 7,204,677 | 730,844 | 7,210,563 | 7,210,563 | ||||||||
| Federal government treasury bonds<br> in pesos adjustment by CER - Maturity: 09-20-2022 | 5495 | 1 | 5,025,445 | 5 | 7,401,103 | 7,401,103 | ||||||||
| Federal government treasury bonds<br> in pesos adjustment by CER - Maturity: 03-25-2024 | 5493 | 1 | 3,160,698 | 345,252 | 3,160,698 | 3,160,698 | ||||||||
| Federal government treasury bonds<br> in pesos adjustment by CER - Maturity: 03-25-2023 | 5492 | 1 | 1,102,860 | 1,090,948 | 1,102,860 | 1,102,860 | ||||||||
| Federal government treasury bonds<br> linked to dollar - Maturity: 11-30-2021 | 5498 | 1 | 823,347 | 823,347 | 823,347 | |||||||||
| Federal government treasury bonds<br> in pesos adjustment by CER - Maturity: 11-09-2026 | 5925 | 1 | 528,467 | 430,967 | 528,467 | 528,467 | ||||||||
| Letters of National Estate in<br> pesos adjustment by CER to discount - Maturity: 03-25-2022 | 5936 | 1 | 397,069 | 397,069 | 397,069 | |||||||||
| Federal government treasury bonds<br> in pesos - Maturity: 10-03-2021 | 5318 | 1 | 358,302 | 358,302 | 358,302 | |||||||||
| Letters of National Estate in<br> pesos adjustment by CER to discount - Maturity: 02-28-2022 | 5500 | 1 | 161,443 | 161,443 | 161,443 | |||||||||
| Consolidation bonds in pesos 6°<br> Serie at 2%- Maturity: 03-15-2024 | 2420 | 1 | 34,582 | 72,247 | 34,582 | 34,582 | ||||||||
| Other | 92,083 | 69,654,649 | 92,083 | 92,083 | ||||||||||
| Subtotal local government<br> securities | 18,888,973 | 72,324,912 | 21,270,517 | 21,270,517 | ||||||||||
| Private securities | ||||||||||||||
| Corporate Bonds Tarjeta Naranja<br> C048 - Maturity: 04-26-2022 | 55317 | 3 | 539,973 | 539,973 | 539,973 | |||||||||
| Corporate Bonds Ledesma SA C010<br> - Maturity: 05-27-2022 | 55500 | 3 | 243,674 | 243,674 | 243,674 | |||||||||
| Debt Securities in Financial Trusts<br> Surcos | 3 | 61,145 | 341,173 | 61,145 | 61,145 | |||||||||
| Securities of companies of public<br> services | 3 | 2,793 | 3,224 | 2,793 | 2,793 | |||||||||
| Debt Securities in Financial Trusts<br> Secubono | 173,913 | |||||||||||||
| Subtotal local private securities | 847,585 | 518,310 | 847,585 | 847,585 | ||||||||||
| TOTAL DEBT SECURITIES AT<br> FAIR VALUE THROUGH PROFIT OR LOSS | 19,736,558 | 72,843,222 | 22,118,102 | 22,118,102 | ||||||||||
| - 110 - | Delfín Jorge Ezequiel Carballo<br> Chairperson | |||||||||||||
| --- | --- |
EXHIBITA
(continued)
DETAIL OF GOVERNMENT AND PRIVATE SECURITIES
AS OF SEPTEMBER 30, 2021 AND DECEMBER 31, 2020
(Translation of the Financial statements originally issued in Spanish – See Note 40)
(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of September 30, 2021, except that indicated otherwise)
| Holdings | Position | ||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 09/30/2021 | 12/31/2020 | 09/30/2021 | |||||||||||||
| Name | Identification | Fair<br> Value | Fair<br> value<br> level | Book<br> amounts | Book<br> amounts | Position<br><br> without<br> options | Options | Final <br> position | |||||||
| OTHER DEBT<br> SECURITIES | |||||||||||||||
| Measured<br> at fair value through other comprehensive income | |||||||||||||||
| - Local | |||||||||||||||
| Government<br> securities | |||||||||||||||
| Letters of<br> National Estate in pesos adjustment by CER to discount - Maturity: 07-29-2022 | 5815 | 1 | 21,756,427 | 21,756,427 | 21,756,427 | ||||||||||
| Bonds of<br> treasury of federal government in pesos adjustment by CER - Maturity: 09-20-2022 | 5495 | 1 | 21,599,162 | 21,599,162 | 21,599,162 | ||||||||||
| Federal government<br> treasury bonds in pesos BADLAR + 200 PB - Maturity: 04-03-2022 | 5480 | 1 | 14,923,089 | 45,121 | 14,923,089 | 14,923,089 | |||||||||
| Letters of<br> National treasury to discount in pesos - Maturity: 01-31-2022 | 5917 | 1 | 12,816,594 | 12,816,594 | 12,816,594 | ||||||||||
| Letters of<br> National treasury to variable rate in pesos - Maturity: 10-29-2021 | 5933 | 1 | 10,852,451 | 11,068,391 | 11,068,391 | ||||||||||
| Letters of<br> National treasury to discount in pesos - Maturity: 11-30-2021 | 5935 | 1 | 9,092,288 | 9,582,663 | 9,582,663 | ||||||||||
| Letters of<br> National Estate in pesos adjustment by CER to discount - Maturity: 04-18-2022 | 5934 | 1 | 8,916,923 | 8,916,923 | 8,916,923 | ||||||||||
| Federal government<br> treasury bonds in pesos adjustment by CER - Maturity: 03-25-2023 | 5492 | 1 | 4,477,053 | 1,423,361 | 4,477,053 | 4,477,053 | |||||||||
| Letters of<br> National Estate in pesos adjustment by CER to discount - Maturity: 05-23-2022 | 5936 | 1 | 3,217,538 | 3,217,538 | 3,217,538 | ||||||||||
| Bonds of<br> treasury of federal government in pesos adjustment by CER - Maturity: 03-25-2024 | 5493 | 1 | 2,826,621 | 1,199,421 | 2,826,621 | 2,826,621 | |||||||||
| Other | 1,776,028 | 58,062,612 | 1,776,028 | 1,776,028 | |||||||||||
| Subtotal<br> local government securities | 112,254,174 | 60,730,515 | 112,960,489 | 112,960,489 | |||||||||||
| Central<br> Bank of Argentina Bills | |||||||||||||||
| Liquidity<br> letters of Central Bank of Argentina in pesos - Maturity: 10-12-2021 | 1 | 22,271,845 | 22,271,845 | 22,271,845 | |||||||||||
| Liquidity<br> letters of Central Bank of Argentina in pesos - Maturity: 10-14-2021 | 1 | 19,488,650 | 19,488,650 | 19,488,650 | |||||||||||
| Liquidity<br> letters of Central Bank of Argentina in pesos - Maturity: 10-05-2021 | 1 | 16,865,674 | 16,865,674 | 16,865,674 | |||||||||||
| Liquidity<br> letters of Central Bank of Argentina in pesos - Maturity: 10-21-2021 | 1 | 16,359,407 | 16,359,407 | 16,359,407 | |||||||||||
| Liquidity<br> letters of Central Bank of Argentina in pesos - Maturity: 10-19-2021 | 2 | 15,694,793 | 15,694,793 | 15,694,793 | |||||||||||
| Liquidity<br> letters of Central Bank of Argentina in pesos - Maturity: 10-07-2021 | 2 | 13,907,817 | 13,907,817 | 13,907,817 | |||||||||||
| Liquidity<br> letters of Central Bank of Argentina in pesos - Maturity: 10-26-2021 | 2 | 13,648,901 | 13,648,901 | 13,648,901 | |||||||||||
| Liquidity<br> letters of Central Bank of Argentina in pesos - Maturity: 10-28-2021 | 2 | 12,145,938 | 12,145,938 | 12,145,938 | |||||||||||
| Liquidity<br> letters of Central Bank of Argentina in pesos - Maturity: 01-21-2021 | 29,060,502 | ||||||||||||||
| Liquidity<br> letters of Central Bank of Argentina in pesos - Maturity: 01-12-2021 | 27,025,825 | ||||||||||||||
| Other | 120,145,268 | ||||||||||||||
| Subtotal<br> Central Bank of Argentina Bills | 130,383,025 | 176,231,595 | 130,383,025 | 130,383,025 | |||||||||||
| Total<br> Other debt securities measured at fair value though other comprehensive income | 242,637,199 | 236,962,110 | 243,343,514 | 243,343,514 | |||||||||||
| Measured<br> at amortized cost | |||||||||||||||
| Local | |||||||||||||||
| Government<br> securities | |||||||||||||||
| Federal government<br> bonds in pesos 22% - Maturity: 05-21-2022 | 5496 | 21,129,200 | 2 | 21,399,534 | 27,613,442 | 21,399,534 | 21,399,534 | ||||||||
| Treasury<br> bills of Province of Neuquén Series 1 Class 1 - Maturity: 04-07-2022 | 42382 | 296,527 | 3 | 311,713 | 311,713 | 311,713 | |||||||||
| Discount<br> bonds denominated in pesos at 5.83% - Maturity: 12-31-2033 | 45696 | 329,287 | 1 | 224,110 | 251,542 | 224,110 | 224,110 | ||||||||
| Debt securities<br> of Province of Río Negro in pesos - Maturity: 04-12-2022 | 42385 | 208,090 | 3 | 218,577 | 218,577 | 218,577 | |||||||||
| Treasury<br> bills of Province of Neuquén Series 4 Class 1 - Maturity: 02-28-2022 | 42426 | 41,183 | 3 | 41,674 | 41,674 | 41,674 | |||||||||
| Federal government<br> treasury bonds adjustment by CER - Maturity: 04-17-2021 | 5494 | 11,743,139 | |||||||||||||
| Federal government<br> treasury letters at variable rate in pesos - Maturity: 03-31-2021 | 5388 | 2,168,527 | |||||||||||||
| Federal government<br> treasury bonds adjustment by CER - Maturity: 03-18-2022 | 5491 | 76,286 | |||||||||||||
| Bonds<br> Par denominated in Pesos - Maturity 12-31-2038 | 45695 | 38,697 | |||||||||||||
| Subtotal<br> local government securities | 22,195,608 | 41,891,633 | 22,195,608 | 22,195,608 | |||||||||||
| Private<br> securities | |||||||||||||||
| Corporate<br> Bonds YPF SA Class 043 -Maturity: 10-21-2023 | 50939 | 118,118 | 2 | 99,537 | 101,717 | 99,537 | 99,537 | ||||||||
| Debt Securities<br> in Financial Trusts Secubono Series 208 Class A - Maturity: 04-28-2022 | 55519 | 71,634 | 3 | 65,196 | 65,196 | 65,196 | |||||||||
| Debt Securities<br> in Financial Trusts Secubono Series 209 Class A - Maturity: 05-30-2022 | 55616 | 60,989 | 3 | 61,252 | 61,252 | 61,252 | |||||||||
| Debt Securities<br> in Financial Trusts Confibono Series 059 Class A - Maturity: 03-21-2022 | 55570 | 46,662 | 3 | 46,860 | 46,860 | 46,860 | |||||||||
| Debt Securities<br> in Financial Trusts Secubono Series 210 Class A - Maturity: 06-28-2022 | 55661 | 34,668 | 3 | 34,706 | 34,706 | 34,706 | |||||||||
| Corporate<br> Bonds Santander Río Bank S.A. Class 021 -Maturity: 01-26-2022 | 53219 | 26,791 | 2 | 26,531 | 35,211 | 26,531 | 26,531 | ||||||||
| Debt Securities<br> in Financial Trusts Secubono Series 207 Class A - Maturity: 03-28-2022 | 55448 | 24,900 | 3 | 24,070 | 24,070 | 24,070 | |||||||||
| Debt Securities<br> in Financial Trusts Accicom Loans Personal Series 11 Class A - Maturity: 12-20-2022 | 55645 | 20,789 | 3 | 21,114 | 21,114 | 21,114 | |||||||||
| Corporate<br> Bonds Banco de la Ciudad de Buenos Aires Class 16 - Maturity: 12-05-2022 | 92655 | 4,123 | 2 | 3,420 | 4,003 | 3,420 | 3,420 | ||||||||
| Corporate<br> Bonds YPF SA Class 046 -Maturity: 03-04-2021 | 51308 | 134,017 | |||||||||||||
| Other | 451,873 | ||||||||||||||
| Subtotal<br> local private securities | 382,686 | 726,821 | 382,686 | 382,686 | |||||||||||
| Total<br> Other debt securities measured at cost amortized | 22,578,294 | 42,618,454 | 22,578,294 | 22,578,294 | |||||||||||
| TOTAL<br> OTHER DEBT SECURITIES | 265,215,493 | 279,580,564 | 265,921,808 | 265,921,808 | |||||||||||
| - 111 - | Delfín Jorge Ezequiel Carballo<br> Chairperson | ||||||||||||||
| --- | --- | ||||||||||||||
| EXHIBIT A | |||||||||||||||
| --- | |||||||||||||||
| (continued) | |||||||||||||||
| DETAILOF GOVERNMENT AND PRIVATE SECURITIES | |||||||||||||||
| AS OF SEPTEMBER 30, 2021 AND DECEMBER 31, 2020 | |||||||||||||||
| (Translation of the Financial statements originally issued in Spanish – See Note 40) | |||||||||||||||
| (Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of September 30, 2021, except that indicated otherwise) | |||||||||||||||
| Holdings | Position | ||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | ||
| 09/30/2021 | 12/31/2020 | 09/30/2021 | |||||||||||||
| Name | Identification | Fair<br><br> Value | Fair<br><br> value<br> level | Book<br><br> amounts | Book<br><br> amounts | Position<br><br> without<br> options | Options | Final<br> <br> position | |||||||
| Equity Instruments | |||||||||||||||
| Measured at fair value through profit or loss | |||||||||||||||
| - Local | |||||||||||||||
| Prisma Medios<br> de Pago SA | 3 | 1,791,063 | 1,945,754 | 1,791,063 | 1,791,063 | ||||||||||
| Mercado Abierto<br> Electrónico SA | 3 | 195,830 | 197,524 | 195,830 | 195,830 | ||||||||||
| Matba Rofex<br> SA | 3 | 26,014 | 29,093 | 26,014 | 26,014 | ||||||||||
| C.O.E.L.S.A | 3 | 19,511 | 26,722 | 19,511 | 19,511 | ||||||||||
| Sedesa | 3 | 15,315 | 16,000 | 15,315 | 15,315 | ||||||||||
| Provincanje<br> SA | 3 | 8,857 | 8,550 | 8,857 | 8,857 | ||||||||||
| AC Inversora<br> SA | 3 | 5,389 | 7,381 | 5,389 | 5,389 | ||||||||||
| Mercado a<br> Término Rosario SA | 3 | 4,308 | 5,901 | 4,308 | 4,308 | ||||||||||
| Proin SA | 3 | 2,543 | 2,685 | 2,543 | 2,543 | ||||||||||
| Sanatorio<br> Las Lomas SA | 3 | 694 | 950 | 694 | 694 | ||||||||||
| Other | 430 | 20,976 | 430 | 430 | |||||||||||
| Subtotal<br> local | 2,069,954 | 2,261,536 | 2,069,954 | 2,069,954 | |||||||||||
| - Foreign | |||||||||||||||
| Banco Latinoamericano<br> de Comercio Exterior SA | 1 | 12,648 | 13,323 | 12,648 | 12,648 | ||||||||||
| Sociedad<br> de Telecomunicaciones Financieras Interbancarias Mundiales | 3 | 2,671 | 2,601 | 2,671 | 2,671 | ||||||||||
| Subtotal<br> foreign | 15,319 | 15,924 | 15,319 | 15,319 | |||||||||||
| Total<br> measured at fair value through profit or loss | 2,085,273 | 2,277,460 | 2,085,273 | 2,085,273 | |||||||||||
| TOTAL<br> EQUITY INSTRUMENTS | 2,085,273 | 2,277,460 | 2,085,273 | 2,085,273 | |||||||||||
| TOTAL<br> GOVERNMENT AND PRIVATE SECURITIES | 287,037,324 | 354,701,246 | 290,125,183 | 290,125,183 | |||||||||||
| - 112 - | Delfín Jorge Ezequiel Carballo<br> Chairperson | ||||||||||||||
| --- | --- | ||||||||||||||
| EXHIBIT B | |||||||||||||||
| --- | |||||||||||||||
| CLASSIFICATION OF LOANS AND OTHER FINANCING | |||||||||||||||
| --- | |||||||||||||||
| BY SITUATION AND COLLATERAL RECEIVED | |||||||||||||||
| AS OF SEPTEMBER 30, 2021 AND DECEMBER 31, 2020 | |||||||||||||||
| (Translation of the Financial statements originally issued in Spanish – See Note 40) | |||||||||||||||
| (Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of September 30, 2021, except that indicated otherwise) | |||||||||||||||
| COMMERCIAL | 09/30/2021 | 12/31/2020 | |||||||||||||
| --- | --- | --- | --- | --- | |||||||||||
| In normal situation | 79,727,200 | 99,752,594 | |||||||||||||
| With senior “A” collateral and counter-collateral | 9,392,502 | 4,645,132 | |||||||||||||
| With senior “B” collateral and counter-collateral | 15,012,839 | 13,287,659 | |||||||||||||
| Without senior collateral or counter-collateral | 55,321,859 | 81,819,803 | |||||||||||||
| Subject to special monitoring | 2,594,843 | 4,105,650 | |||||||||||||
| In observation | |||||||||||||||
| With senior “A” collateral and counter-collateral | 3,290 | 463 | |||||||||||||
| With senior “B” collateral and counter-collateral | 2,275,589 | 2,917,523 | |||||||||||||
| Without senior collateral or counter-collateral | 315,964 | 835,557 | |||||||||||||
| In negotiation or with financing agreements | |||||||||||||||
| With senior “B” collateral and counter-collateral | 186,374 | ||||||||||||||
| Without senior collateral or counter-collateral | 165,733 | ||||||||||||||
| Troubled | 266,164 | 112,926 | |||||||||||||
| With senior “B” collateral and counter-collateral | 106,471 | ||||||||||||||
| Without senior collateral or counter-collateral | 159,693 | 112,926 | |||||||||||||
| With high risk of insolvency | 105,708 | 116,635 | |||||||||||||
| With senior “B” collateral and counter-collateral | 90,767 | 107,153 | |||||||||||||
| Without senior collateral or counter-collateral | 14,941 | 9,482 | |||||||||||||
| Irrecoverable | 96,674 | 714,736 | |||||||||||||
| With senior “A” collateral and counter-collateral | 62,305 | 72,722 | |||||||||||||
| With senior “B” collateral and counter-collateral | 34,351 | 582,131 | |||||||||||||
| Without senior collateral or counter-collateral | 18 | 59,883 | |||||||||||||
| Subtotal Commercial | 82,790,589 | 104,802,541 | |||||||||||||
| - 113 - | Delfín Jorge Ezequiel Carballo<br> Chairperson | ||||||||||||||
| --- | --- | ||||||||||||||
| EXHIBIT B | |||||||||||||||
| --- | |||||||||||||||
| (continued) | |||||||||||||||
| CLASSIFICATION OF LOANS AND OTHER FINANCING | |||||||||||||||
| --- | |||||||||||||||
| BY SITUATION AND COLLATERAL RECEIVED | |||||||||||||||
| AS OF SEPTEMBER 30, 2021 AND DECEMBER 31, 2020 | |||||||||||||||
| (Translation of the Financial statements originally issued in Spanish – See Note 40) | |||||||||||||||
| (Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of September 30, 2021, except that indicated otherwise) | |||||||||||||||
| CONSUMER AND MORTGAGE | 09/30/2021 | 12/31/2020 | |||||||||||||
| --- | --- | --- | --- | --- | |||||||||||
| Performing | 232,600,495 | 263,585,721 | |||||||||||||
| With senior “A” collateral and counter-collateral | 16,907,594 | 26,819,643 | |||||||||||||
| With senior “B” collateral and counter-collateral | 20,425,345 | 22,411,162 | |||||||||||||
| Without senior collateral or counter-collateral | 195,267,556 | 214,354,916 | |||||||||||||
| Low risk | 1,997,476 | 101,880 | |||||||||||||
| With senior “A” collateral and counter-collateral | 43,438 | 6,855 | |||||||||||||
| With senior “B” collateral and counter-collateral | 172,078 | 75 | |||||||||||||
| Without senior collateral or counter-collateral | 1,781,960 | 94,950 | |||||||||||||
| Low risk - in special treatment | 30,210 | 14,433 | |||||||||||||
| With senior “A” collateral and counter-collateral | |||||||||||||||
| With senior “B” collateral and counter-collateral | 12,403 | ||||||||||||||
| Without senior collateral or counter-collateral | 17,807 | 14,433 | |||||||||||||
| Medium risk | 2,202,011 | 294,084 | |||||||||||||
| With senior “A” collateral and counter-collateral | 90,604 | 6,217 | |||||||||||||
| With senior “B” collateral and counter-collateral | 124,704 | 41,122 | |||||||||||||
| Without senior collateral or counter-collateral | 1,986,703 | 246,745 | |||||||||||||
| High risk | 2,107,060 | 512,622 | |||||||||||||
| With senior “A” collateral and counter-collateral | 86,673 | 28,675 | |||||||||||||
| With senior “B” collateral and counter-collateral | 98,504 | 64,832 | |||||||||||||
| Without senior collateral or counter-collateral | 1,921,883 | 419,115 | |||||||||||||
| Irrecoverable | 594,672 | 1,123,065 | |||||||||||||
| With senior “A” collateral and counter-collateral | 3,081 | 15,379 | |||||||||||||
| With senior “B” collateral and counter-collateral | 181,301 | 328,439 | |||||||||||||
| Without senior collateral or counter-collateral | 410,290 | 779,247 | |||||||||||||
| Subtotal consumer and mortgage | 239,531,924 | 265,631,805 | |||||||||||||
| Total | 322,322,513 | 370,434,346 | |||||||||||||
| - 114 - | Delfín Jorge Ezequiel Carballo<br> Chairperson | ||||||||||||||
| --- | --- |
EXHIBIT B
(continued)
| CLASSIFICATION OF LOANS AND OTHER FINANCING |
|---|
| BYSITUATION AND COLLATERAL RECEIVED |
| AS OF SEPTEMBER 30, 2021 AND DECEMBER 31, 2020 |
| (Translation of the Financial statements originally issued in Spanish – See Note 40) |
| (Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of September 30, 2021, except that indicated otherwise) |
This exhibit discloses the contractual figures as established by the BCRA. The conciliation with the separated statement of financial position is listed below:
| 09/30/2021 | 12/31/2020 | |||||
|---|---|---|---|---|---|---|
| Loans and other financing | 310,049,053 | 352,521,541 | ||||
| Added: | ||||||
| Allowances for loans and other financing | 9,150,270 | 13,728,250 | ||||
| Adjustment amortized cost and fair value | 350,853 | 185,005 | ||||
| Debt securities of financial trust - Measured at amortized cost | 253,198 | 228,297 | ||||
| Corporate bonds | 129,888 | 500,363 | ||||
| Subtract: | ||||||
| Interest and other accrued items receivable from financial assets with impaired credit value | (114,244 | ) | (79,851 | ) | ||
| Guarantees provided and contingent liabilities | 2,503,495 | 3,350,741 | ||||
| Total computable items | 322,322,513 | 370,434,346 | ||||
| - 115 - | Delfín Jorge Ezequiel Carballo<br> Chairperson | |||||
| --- | --- |
EXHIBIT C
| CONCENTRATION OF LOANS AND FINANCING FACILITIES | ||||||||
|---|---|---|---|---|---|---|---|---|
| AS OF SEPTEMBER 30, 2021 AND DECEMBER 31, 2020 | ||||||||
| (Translation of the Financial statements originally issued in Spanish – See Note 40) | ||||||||
| (Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of September 30, 2021, except that indicated otherwise) | ||||||||
| 09/30/2021 | 12/31/2020 | |||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Number of customers | Cut off <br><br>balance | % of total <br><br>portfolio | Cut off <br><br>balance | % of total <br><br>portfolio | ||||
| 10 largest customers | 18,574,134 | 5.76 | 41,367,630 | 11.17 | ||||
| 50 next largest customers | 29,319,160 | 9.10 | 32,607,767 | 8.80 | ||||
| 100 next largest customers | 20,697,939 | 6.42 | 18,704,220 | 5.05 | ||||
| Other customers | 253,731,280 | 78.72 | 277,754,729 | 74.98 | ||||
| Total (1) | 322,322,513 | 100.00 | 370,434,346 | 100.00 |
(1) See reconciliation in Exhibit B
| - 116 - | Delfín Jorge Ezequiel Carballo<br> Chairperson | |||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| EXHIBIT D | ||||||||||||||||
| --- | --- | |||||||||||||||
| BREAKDOWN OF LOANS AND OTHER FINANCING BY TERMS | ||||||||||||||||
| AS OF SEPTEMBER 30, 2021 | ||||||||||||||||
| (Translation of the Financial statements originally issued in Spanish – See Note 40) | ||||||||||||||||
| (Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of September 30, 2021, except that indicated otherwise) | ||||||||||||||||
| Remaining<br> terms to maturity | ||||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Item | Matured | Up<br> to 1<br> month | Over<br> 1<br> month and <br> up to 3 <br> months | Over<br> 3 <br> months and <br> up to 6 <br> months | Over<br> 6 <br> months <br> and up to <br> 12 months | Over<br> 12<br> months<br> and up to <br> 24 months | Over<br> 24<br> months | Total | ||||||||
| Non-financial government<br> sector | 252,353 | 652,813 | 540,961 | 921,400 | 1,273,978 | 3,641,505 | ||||||||||
| Financial sector | 193,347 | 131,465 | 918,601 | 90,193 | 746,879 | 195,698 | 2,276,183 | |||||||||
| Non-financial<br> private sector and foreign residents | 2,181,405 | 114,600,596 | 34,717,658 | 44,107,172 | 57,032,862 | 66,112,119 | 100,752,326 | 419,504,138 | ||||||||
| Total | 2,181,405 | 115,046,296 | 35,501,936 | 45,566,734 | 58,044,455 | 68,132,976 | 100,948,024 | 425,421,826 | ||||||||
| BREAKDOWN OF LOANS AND OTHER FINANCING BY TERMS | ||||||||||||||||
| --- | ||||||||||||||||
| AS OF DECEMBER 31, 2020 | ||||||||||||||||
| (Translation of the Financial statements originally issued in Spanish – See Note 40) | ||||||||||||||||
| (Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of September 30, 2021, except that indicated otherwise) | ||||||||||||||||
| Remaining<br> terms to maturity | ||||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Item | Matured | Up<br> to 1<br> month | Over<br> 1<br> month and <br> up to 3 <br> months | Over<br> 3 <br> months and <br> up to 6 <br> months | Over<br> 6 <br> months <br> and up to <br> 12 months | Over<br> 12<br> months<br> and up to <br> 24 months | Over<br> 24<br> months | Total | ||||||||
| Non-financial government sector | 328,785 | 972,112 | 989,006 | 1,784,152 | 3,068,145 | 650,804 | 7,793,004 | |||||||||
| Financial sector | 100,204 | 501,413 | 742,980 | 460,498 | 1,377,402 | 3,182,497 | ||||||||||
| Non-financial private sector<br> and foreign residents | 1,785,093 | 129,208,953 | 42,527,026 | 57,445,635 | 67,807,857 | 64,462,499 | 104,898,703 | 468,135,766 | ||||||||
| Total | 1,785,093 | 129,637,942 | 44,000,551 | 59,177,621 | 70,052,507 | 68,908,046 | 105,549,507 | 479,111,267 |
This exhibit disclosures contractual future cash flows that include interests and accessories to be accrued until maturity of the contracts.
| - 117 - | Delfín Jorge Ezequiel Carballo<br> Chairperson | |||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| EXHIBIT F | ||||||||||||||||||||||||
| --- | --- | |||||||||||||||||||||||
| CHANGE OF PROPERTY, PLANT AND EQUIPMENT | ||||||||||||||||||||||||
| AS OF SEPTEMBER 30, 2021 | ||||||||||||||||||||||||
| (Translation of the Financial statements originally issued in Spanish – See Note 40) | ||||||||||||||||||||||||
| (Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of September 30, 2021, except that indicated otherwise) | ||||||||||||||||||||||||
| Original <br><br> value at <br><br> beginning | Total life | Depreciation<br> of the period | Residual value at the end | |||||||||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Item | of<br> fiscal<br><br> year | estimated<br><br> in years | Increases | Decreases | Transfers (1) | **** | Accumulated | Transfers (1) | **** | Decrease | Of the period | At the end | of the period | |||||||||||
| Cost | ||||||||||||||||||||||||
| Real property | 41,737,692 | 50 | 242,702 | 1,042,115 | 3,418,073 | 92,002 | 649,703 | 4,159,778 | 38,862,731 | |||||||||||||||
| Furniture and facilities | 5,373,501 | 10 | 111,465 | 1,315 | 216,072 | 2,400,725 | 121 | 442 | 377,111 | 2,777,515 | 2,922,208 | |||||||||||||
| Machinery and equipment | 7,504,901 | 5 | 405,015 | 24,342 | 135,295 | 4,718,866 | (605 | ) | 605 | 872,117 | 5,589,773 | 2,431,096 | ||||||||||||
| Vehicles | 1,140,336 | 5 | 91,910 | 59,142 | 2,919 | 936,609 | 162 | 50,712 | 71,728 | 957,787 | 218,236 | |||||||||||||
| Work in progress | 1,148,417 | 1,619,122 | (676,377 | ) | 2,091,162 | |||||||||||||||||||
| Right of<br> use real property | 2,826,975 | 5 | 488,374 | 6,711 | 14,570 | 1,223,120 | 663 | 3,566 | 520,807 | 1,741,024 | 1,582,184 | |||||||||||||
| Total<br> property, plant and equipment | 59,731,822 | 2,958,588 | 91,510 | 734,594 | 12,697,393 | 92,343 | 55,325 | 2,491,466 | 15,225,877 | 48,107,617 | ||||||||||||||
| CHANGE OF PROPERTY, PLANT AND EQUIPMENT | ||||||||||||||||||||||||
| --- | ||||||||||||||||||||||||
| AS OF DECEMBER 31, 2020 | ||||||||||||||||||||||||
| (Translation of the Financial statements originally issued in Spanish – See Note 40) | ||||||||||||||||||||||||
| (Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of September 30, 2021, except that indicated otherwise) | ||||||||||||||||||||||||
| Original <br><br> value at <br><br> beginning | Total life | Depreciation<br>for the fiscal year | Residual value at the end of | |||||||||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Item | of<br> fiscal<br><br> year | estimated<br><br> in years | Increases | Decreases | Transfers | **** | Accumulated | Transfers | **** | Decrease | For thefiscal year | At the end | thefiscal year | |||||||||||
| Cost | ||||||||||||||||||||||||
| Real property | 40,843,538 | 50 | 263,433 | 630,721 | 2,588,504 | (16,658 | ) | 846,227 | 3,418,073 | 38,319,619 | ||||||||||||||
| Furniture and facilities | 4,952,534 | 10 | 118,059 | 847 | 303,755 | 1,901,481 | 192 | 51 | 499,103 | 2,400,725 | 2,972,776 | |||||||||||||
| Machinery and equipment | 6,641,503 | 5 | 680,919 | 63 | 182,542 | 3,526,982 | 130 | 3 | 1,191,757 | 4,718,866 | 2,786,035 | |||||||||||||
| Vehicles | 1,115,493 | 5 | 110,729 | 85,886 | 919,870 | 79,992 | 96,731 | 936,609 | 203,727 | |||||||||||||||
| Work in progress | 1,628,725 | 634,757 | (1,115,065 | ) | 1,148,417 | |||||||||||||||||||
| Right of use | 2,258,157 | 5 | 710,240 | 141,422 | 552,012 | 34,693 | 705,801 | 1,223,120 | 1,603,855 | |||||||||||||||
| Total<br> property, plant and equipment | 57,439,950 | 2,518,137 | 228,218 | 1,953 | 9,488,849 | (16,336 | ) | 114,739 | 3,339,619 | 12,697,393 | 47,034,429 |
(1) During the fiscal year 2021, this item observed transfers to Non-current assets held for sale.
| - 118 - | Delfín Jorge Ezequiel Carballo<br> Chairperson | |||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| EXHIBIT F | ||||||||||||||||||||||||
| --- | --- | |||||||||||||||||||||||
| (Continued) | ||||||||||||||||||||||||
| CHANGE IN INVESTMENT PROPERTY | ||||||||||||||||||||||||
| AS OF SEPTEMBER 30, 2021 | ||||||||||||||||||||||||
| (Translation of the Financial statements originally issued in Spanish – See Note 40) | ||||||||||||||||||||||||
| (Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of September 30, 2021, except that indicated otherwise) | ||||||||||||||||||||||||
| Original <br><br> value at <br><br> beginning | Useful life | Depreciation<br> of the period | Residual value at the end | |||||||||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Item | of<br> fiscal<br><br> year | estimated<br><br> in years | Increases | Decreases | Transfers | **** | Accumulated | Transfers | **** | Decrease | Of the period | At the end | of the period | |||||||||||
| Cost | ||||||||||||||||||||||||
| Rented properties | 301,607 | 50 | (92,000 | ) | 49,517 | (45,010 | ) | 2,451 | 6,958 | 202,649 | ||||||||||||||
| Other investment<br> properties | 864,550 | 50 | 2,582 | 21,157 | (634,782 | ) | 57,696 | (46,991 | ) | 3,523 | 7,692 | 14,874 | 196,319 | |||||||||||
| Total<br> investment property | 1,166,157 | 2,582 | 21,157 | (726,782 | ) | 107,213 | (92,001 | ) | 3,523 | 10,143 | 21,832 | 398,968 | ||||||||||||
| CHANGE IN INVESTMENT PROPERTY | ||||||||||||||||||||||||
| --- | ||||||||||||||||||||||||
| AS OF DECEMBER 31, 2020 | ||||||||||||||||||||||||
| (Translation of the Financial statements originally issued in Spanish – See Note 40) | ||||||||||||||||||||||||
| (Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of September 30, 2021, except that indicated otherwise) | ||||||||||||||||||||||||
| Original <br><br> value at <br><br> beginning | Useful life | Depreciation<br> for the fiscal year | Residual value at the end of | |||||||||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | |
| Item | of<br> fiscal<br><br> year | estimated<br><br> in years | Increases | Decreases | Transfers (1) | **** | Accumulated | Transfers (1) | Decrease | For thefiscal year | At the end | the fiscal year | ||||||||||||
| Cost | ||||||||||||||||||||||||
| Rented properties | 301,606 | 50 | 2 | (1 | ) | 46,146 | 1 | 3,370 | 49,517 | 252,090 | ||||||||||||||
| Other investment<br> properties | 854,479 | 50 | 95,277 | 58 | (85,148 | ) | 44,308 | 150 | 7 | 13,245 | 57,696 | 806,854 | ||||||||||||
| Total<br> investment property | 1,156,085 | 95,279 | 58 | (85,149 | ) | 90,454 | 151 | 7 | 16,615 | 107,213 | 1,058,944 |
(1) During the fiscal year 2020, this item observed transfers to and from property, plant and equipment.
| - 119 - | Delfín Jorge Ezequiel Carballo<br> Chairperson | |||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| EXHIBIT G | ||||||||||||||||||||||
| --- | --- | |||||||||||||||||||||
| CHANGE IN INTANGIBLE ASSETS | ||||||||||||||||||||||
| AS OF SEPTEMBER 30, 2021 | ||||||||||||||||||||||
| (Translation of the Financial statements originally issued in Spanish – See Note 40) | ||||||||||||||||||||||
| (Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of September 30, 2021, except that indicated otherwise) | ||||||||||||||||||||||
| Original <br><br> value at <br><br> beginning | Useful life | Depreciation<br> of the period | Residual value at the end | |||||||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Item | of<br> fiscal<br><br> year | estimated<br><br> in years | Increases | Decreases | Transfers | **** | Accumulated | Transfers | **** | Decrease | Of the period | At the end | of the period | |||||||||
| Cost | ||||||||||||||||||||||
| Licenses | 3,765,635 | 5 | 780,790 | (10,354 | ) | 1,953,453 | (342 | ) | 618,480 | 2,571,591 | 1,964,480 | |||||||||||
| Other intangible assets | 11,803,805 | 5 | 2,038,203 | 6,627,968 | 1,637,857 | 8,265,825 | 5,576,183 | |||||||||||||||
| Total intangible assets | 15,569,440 | 2,818,993 | (10,354 | ) | 8,581,421 | (342 | ) | 2,256,337 | 10,837,416 | 7,540,663 | ||||||||||||
| CHANGE IN INTANGIBLE ASSETS | ||||||||||||||||||||||
| --- | ||||||||||||||||||||||
| AS OF DECEMBER 31, 2020 | ||||||||||||||||||||||
| (Translation of the Financial statements originally issued in Spanish – See Note 40) | ||||||||||||||||||||||
| (Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of September 30, 2021, except that indicated otherwise) | ||||||||||||||||||||||
| Original <br><br> value at <br><br> beginning | Useful life | Depreciation<br> for the fiscal year | Residual value at the end of | |||||||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Item | of<br> fiscal<br><br> year | estimated<br><br> in years | Increases | Decreases | Transfers | **** | Accumulated | Transfers | **** | Decrease | For thefiscal year | At the end | the fiscal year | |||||||||
| Cost | ||||||||||||||||||||||
| Licenses | 3,046,987 | 5 | 718,653 | (5 | ) | 1,249,027 | (4 | ) | 704,430 | 1,953,453 | 1,812,182 | |||||||||||
| Other<br> intangible assets | 9,492,724 | 5 | 2,311,084 | (3 | ) | 4,688,579 | (3 | ) | 1,939,392 | 6,627,968 | 5,175,837 | |||||||||||
| Total<br> intangible assets | 12,539,711 | 3,029,737 | (8 | ) | 5,937,606 | (7 | ) | 2,643,822 | 8,581,421 | 6,988,019 | ||||||||||||
| - 120 - | Delfín Jorge Ezequiel Carballo<br> Chairperson | |||||||||||||||||||||
| --- | --- | |||||||||||||||||||||
| EXHIBIT H | ||||||||||||||||||||||
| --- | --- | |||||||||||||||||||||
| DEPOSIT CONCENTRATION | ||||||||||||||||||||||
| AS OF SEPTEMBER 30, 2021 AND DECEMBER 31, 2020 | ||||||||||||||||||||||
| (Translation of the Financial statements originally issued in Spanish – See Note 40) | ||||||||||||||||||||||
| (Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of September 30, 2021, except that indicated otherwise) | ||||||||||||||||||||||
| 09/30/2021 | 12/31/2020 | |||||||||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | ||||||||||||||
| Number of customers | Outstanding <br><br>balance | % of total <br><br>portfolio | Outstanding <br><br>balance | % of total portfolio | ||||||||||||||||||
| 10 largest customers | 40,543,644 | 7.59 | 128,193,230 | 19.30 | ||||||||||||||||||
| 50 next largest customers | 36,069,667 | 6.75 | 63,543,916 | 9.56 | ||||||||||||||||||
| 100 next largest customers | 23,144,119 | 4.33 | 28,930,110 | 4.35 | ||||||||||||||||||
| Other customers | 434,272,716 | 81.33 | 443,716,637 | 66.79 | ||||||||||||||||||
| Total | 534,030,146 | 100.00 | 664,383,893 | 100.00 | ||||||||||||||||||
| - 121 - | Delfín Jorge Ezequiel Carballo<br> Chairperson | |||||||||||||||||||||
| --- | --- | |||||||||||||||||||||
| EXHIBIT I | ||||||||||||||||||||||
| --- | ||||||||||||||||||||||
| BREAKDOWN OF FINANCIAL LIABILITIES | ||||||||||||||||||||||
| FOR RESIDUAL TERMS | ||||||||||||||||||||||
| AS OF SEPTEMBER 30, 2021 | ||||||||||||||||||||||
| (Translation of the Financial statements originally issued in Spanish – See Note 40) | ||||||||||||||||||||||
| (Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of September 30, 2021, except that indicated otherwise) | ||||||||||||||||||||||
| 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 | 473,852,028 | 57,742,528 | 6,386,854 | 981,081 | 13,246 | 1,600 | 538,977,337 | |||||||||||||||
| From the<br> non-financial government sector | 50,247,600 | 3,498,678 | 580,635 | 2,504 | 54,329,417 | |||||||||||||||||
| From the<br> financial sector | 829,782 | 829,782 | ||||||||||||||||||||
| From the<br> non-financial private sector and foreign residents | 422,774,646 | 54,243,850 | 5,806,219 | 978,577 | 13,246 | 1,600 | 483,818,138 | |||||||||||||||
| Derivative instruments | 2,440 | 2,440 | ||||||||||||||||||||
| Repo transactions | 1,810,254 | 1,810,254 | ||||||||||||||||||||
| Other<br> financial institutions | 1,810,254 | 1,810,254 | ||||||||||||||||||||
| Other financial liabilities | 40,431,179 | 171,664 | 153,422 | 245,392 | 367,596 | 525,794 | 41,895,047 | |||||||||||||||
| Financing received from<br> the Central Bank of Argentina and other financial institutions | 167,031 | 243,355 | 172,250 | 17,891 | 9,670 | 610,197 | ||||||||||||||||
| Issued corporate bonds | 252,804 | 3,141,995 | 3,394,799 | |||||||||||||||||||
| Subordinated corporate bonds | 1,332,923 | 1,465,820 | 2,931,640 | 49,754,740 | 55,485,123 | |||||||||||||||||
| Total | 516,262,932 | 59,743,274 | 6,712,526 | 5,852,179 | 3,322,152 | 50,282,134 | 642,175,197 |
This exhibit discloses contractual future cash flows that include interests and accessories to be accrued until maturity of the contracts.
| - 122 - | Delfín Jorge Ezequiel Carballo<br> Chairperson | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| EXHIBIT I | ||||||||||||||
| --- | ||||||||||||||
| (Continued) | ||||||||||||||
| BREAKDOWN OF FINANCIAL LIABILITIES | ||||||||||||||
| FOR RESIDUAL TERMS | ||||||||||||||
| AS OF DECEMBER 31, 2020 | ||||||||||||||
| (Translation of the Financial statements originally issued in Spanish – See Note 40) | ||||||||||||||
| (Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of September 30, 2021, except that indicated otherwise) | ||||||||||||||
| Remaining<br> terms to maturity | ||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Item | Up<br> to 1 month | Over<br> 1<br><br> month and<br><br> up to 3<br><br> months | Over<br> 3<br><br> months and<br><br> up to 6<br><br> months | Over<br> 6<br><br> months and<br><br> up to 12<br><br> months | Over<br> 12<br><br> months and<br><br> up to 24<br><br> months | Over<br> 24<br><br> months | Total | |||||||
| Deposits | 597,491,686 | 61,696,373 | 7,644,603 | 4,143,548 | 47,671 | 2,995 | 671,026,876 | |||||||
| From the<br> non-financial government sector | 92,957,864 | 7,613,455 | 1,235,325 | 2,914 | 101,809,558 | |||||||||
| From the<br> financial sector | 953,796 | 953,796 | ||||||||||||
| From the<br> non-financial private sector and foreign residents | 503,580,026 | 54,082,918 | 6,409,278 | 4,140,634 | 47,671 | 2,995 | 568,263,522 | |||||||
| Derivative instruments | 58 | 257 | 315 | |||||||||||
| Repo transactions | 849,672 | 849,672 | ||||||||||||
| Other<br> financial institutions | 849,672 | 849,672 | ||||||||||||
| Other financial liabilities | 43,679,257 | 179,764 | 167,757 | 434,048 | 362,377 | 704,449 | 45,527,652 | |||||||
| Financing received from<br> the Central Bank of Argentina and other financial institutions | 574,151 | 273,191 | 279,496 | 110,529 | 54,911 | 7,839 | 1,300,117 | |||||||
| Issued corporate bonds | 286,716 | 3,782,912 | 284,938 | 3,541,381 | 7,895,947 | |||||||||
| Subordinated corporate bonds | 1,555,783 | 1,555,785 | 3,421,802 | 59,784,506 | 66,317,876 | |||||||||
| Total | 642,881,540 | 62,149,585 | 13,430,551 | 6,528,848 | 7,428,142 | 60,499,789 | 792,918,455 |
This exhibit discloses contractual future cash flows that include interests and accessories to be accrued until maturity of the contracts.
| - 123 - | Delfín Jorge Ezequiel Carballo<br> Chairperson | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| EXHIBIT J | |||||||||||||
| --- | |||||||||||||
| CHANGESIN PROVISIONS | |||||||||||||
| AS OF SEPTEMBER 30, 2021 | |||||||||||||
| (Translation of the Financial statements originally issued in Spanish – See Note 40) | |||||||||||||
| (Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of September 30, 2021, except that indicated otherwise) | |||||||||||||
| **** | Amounts atbeginning of | **** | Decreases | Monetary effectsgenerated by | **** | **** | |||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Item | fiscal year | Increases | Reversals | Charge off | provisions | **** | 09/30/2021 | ||||||
| Provisions for eventual commitments | 23,566 | 278,780 | 1,153 | (21,243 | ) | 279,950 | |||||||
| For Administrative, disciplinary and criminal penalties | 984 | 37,775 | 229 | 37,725 | (305 | ) | 500 | ||||||
| Other | 1,762,099 | 912,959 | 1,150,295 | (434,760 | ) | 1,090,003 | |||||||
| Total Provisions | 1,786,649 | 1,229,514 | 229 | 1,189,173 | (456,308 | ) | 1,370,453 | ||||||
| CHANGES IN PROVISIONS | |||||||||||||
| --- | |||||||||||||
| AS OF DECEMBER 31, 2020 | |||||||||||||
| (Translation of the Financial statements originally issued in Spanish – See Note 40) | |||||||||||||
| (Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of September 30, 2021, except that indicated otherwise) | |||||||||||||
| **** | Amounts at beginning of | **** | Decreases | Monetary effects generated by | **** | **** | |||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Item | fiscal year | Increases | Reversals | Charge off | provisions | 12/31/2020 | |||||||
| Provisions for eventual commitments | 32,204 | 10,781 | 10,985 | (8,434 | ) | 23,566 | |||||||
| For Administrative, disciplinary and criminal penalties | 1,338 | (354 | ) | 984 | |||||||||
| Other | 2,713,905 | 1,536,684 | 11 | 1,727,187 | (761,292 | ) | 1,762,099 | ||||||
| Total Provisions | 2,747,447 | 1,547,465 | 11 | 1,738,172 | (770,080 | ) | 1,786,649 | ||||||
| - 124 - | Delfín Jorge Ezequiel Carballo<br> Chairperson | ||||||||||||
| --- | --- | ||||||||||||
| EXHIBIT K | |||||||||||||
| --- | |||||||||||||
| COMPOSITION OF CAPITAL STOCK | |||||||||||||
| AS OF SEPTEMBER 30, 2021 | |||||||||||||
| (Translation of the Financial statements originally issued in Spanish – See Note 40) | |||||||||||||
| Shares | Capital Stock | ||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | |||
| Class | Stock<br><br> number | Face<br><br> value | Votes per <br> share | Issued<br> outstanding | Paid in | ||||||||
| Registered common stock A | 11,235,670 | 1 | 5 | 11,236 | 11,236 | ||||||||
| Registered common stock B | 628,177,738 | 1 | 1 | 628,177 | 628,177 | ||||||||
| Total | 639,413,408 | 639,413 | 639,413 | ||||||||||
| COMPOSITION OF CAPITAL STOCK | |||||||||||||
| --- | |||||||||||||
| AS OF DECEMBER 31, 2020 | |||||||||||||
| (Translation of the Financial statements originally issued in Spanish – See Note 40) | |||||||||||||
| Shares | Capital Stock | ||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | |||
| Class | Stock <br><br>number | Face <br><br>value | Votes per <br> share | Issued<br> outstanding | Paid in | ||||||||
| Registered common stock A | 11,235,670 | 1 | 5 | 11,236 | 11,236 | ||||||||
| Registered common stock B | 628,177,738 | 1 | 1 | 628,177 | 628,177 | ||||||||
| Total | 639,413,408 | 639,413 | 639,413 | ||||||||||
| - 125 - | Delfín Jorge Ezequiel Carballo<br> Chairperson | ||||||||||||
| --- | --- | ||||||||||||
| EXHIBIT L | |||||||||||||
| --- | |||||||||||||
| FOREIGN CURRENCY AMOUNTS | |||||||||||||
| AS OF SEPTEMBER 30, 2021 AND DECEMBER 31, 2020 | |||||||||||||
| (Translation of the Financial statements originally issued in Spanish – See Note 40) | |||||||||||||
| (Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of September 30, 2021, except that indicated otherwise) | |||||||||||||
| 09/30/2021 | |||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | |
| Total parent<br><br> company and<br><br> local | Total per currency | 12/31/2020 | |||||||||||
| Item | branches | US dollar | Euro | Real | Other | Total | |||||||
| Assets | |||||||||||||
| Cash and deposits in banks | 118,046,912 | 117,234,254 | 561,152 | 21,771 | 229,735 | 123,605,042 | |||||||
| Debt securities at fair value through profit or loss | 838,979 | 838,979 | |||||||||||
| Other financial assets | 5,446,150 | 5,446,150 | 6,398,604 | ||||||||||
| Loans and other financing | 19,568,817 | 19,558,353 | 10,464 | 31,328,935 | |||||||||
| Other financial institutions | 29,075 | ||||||||||||
| From the non-financial private sector and foreign residents | 19,568,817 | 19,558,353 | 10,464 | 31,299,860 | |||||||||
| Other debt securities | 1,119,140 | 1,119,140 | 1,237,195 | ||||||||||
| Financial assets delivered as guarantee | 1,928,958 | 1,928,958 | 2,406,080 | ||||||||||
| Equity instruments at fair value through profit or loss | 15,319 | 15,319 | 15,924 | ||||||||||
| Investments in associates and joint ventures | 2,906,561 | 2,906,561 | 3,567,404 | ||||||||||
| Total assets | 149,870,836 | 149,047,714 | 571,616 | 21,771 | 229,735 | 168,559,184 | |||||||
| Liabilities | |||||||||||||
| Deposits | 92,259,136 | 92,259,136 | 100,304,036 | ||||||||||
| Non-financial government sector | 5,703,950 | 5,703,950 | 5,750,152 | ||||||||||
| Financial sector | 730,824 | 730,824 | 785,991 | ||||||||||
| Non-financial private sector and foreign residents | 85,824,362 | 85,824,362 | 93,767,893 | ||||||||||
| Other financial liabilities | 4,822,434 | 4,501,371 | 304,615 | 16,448 | 6,041,963 | ||||||||
| Financing from the Central Bank and other financial institutions | 512,792 | 502,299 | 10,493 | 642,867 | |||||||||
| Subordinated corporate bonds | 41,039,615 | 41,039,615 | 46,976,966 | ||||||||||
| Other non financial liabilities | 7,449 | 7,449 | 8,882 | ||||||||||
| Total liabilities | 138,641,426 | 138,309,870 | 315,108 | 16,448 | 153,974,714 | ||||||||
| - 126 - | Delfín Jorge Ezequiel Carballo<br> Chairperson | ||||||||||||
| --- | --- |
EXHIBIT O
| DERIVATIVEFINANCIAL INSTRUMENTS | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| AS OF SEPTEMBER 30, 2021 | ||||||||||||
| (Translation of the Financial statements originally issued in Spanish – See Note 40) | ||||||||||||
| (Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of September 30, 2021, except that indicated otherwise) | ||||||||||||
| Type of<br><br> contract | Purpose of<br><br> the<br><br> transactions<br><br> performed | Underlying<br><br> asset | Type of<br><br> settlement | Negotiation<br><br> environment or<br><br> counter-party | Originally<br><br> agreed <br><br>weighted <br><br>average<br><br> term <br><br>(months) | Residual<br><br> weighted<br><br> average<br><br> term<br><br> (months) | Weighted daily<br><br> average term<br><br> settlement of<br><br> differences (days) | Amount (1) | ||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Futures | Intermediation<br> - own account | Foreign<br> currency | Daily settlement of<br> differences | ROFEX (over-the-counter <br> electronic market) | 2 | 2 | 1 | 1,871,308 | ||||
| Futures | Intermediation<br> - own account | Foreign<br> currency | Daily settlement of<br> differences | MAE (over-the-counter <br> electronic market) | 1 | 1 | 1 | 803,520 | ||||
| Repo transactions | Intermediation<br> - own account | Local government securities | With delivery of<br> underlying asset | Other countries of local | 1 | 1 | 27,230,369 | |||||
| Options | Intermediation<br> - own account | Other | With delivery of<br> underlying asset | Over The Counter - Residents<br> in Argentina – Non-financial sector | 36 | 6 | 290,281 |
(1) Related to the valuation of the underlying traded, exposed in absolute value.
| - 127 - | Delfín Jorge Ezequiel Carballo<br> Chairperson | ||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| EXHIBIT Q | |||||||||||||||||||
| --- | |||||||||||||||||||
| BREAKDOWN OF STATEMENT OF INCOME | |||||||||||||||||||
| FOR THE THREE AND NINE PERIODS ENDED SEPTEMBER 30, 2021 AND 2020 | |||||||||||||||||||
| (Translation of the Financial statements originally issued in Spanish – See Note 40) | |||||||||||||||||||
| (Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of September 30, 2021, except that indicated otherwise) | |||||||||||||||||||
| Net financial Income/(Loss) | |||||||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | |||||||
| Mandatory measurement | |||||||||||||||||||
| Items | Quarter <br><br>ended<br><br> 09/30/2021 | Accumulated<br><br> from <br><br>beginning of<br><br> year up to<br><br> 09/30/2021 | Quarter <br><br>ended 09/30/2020 | Accumulated<br><br> from <br><br>beginning of<br><br> year up to<br><br> 09/30/2020 | |||||||||||||||
| For measurement of financial assets at fair value through profit or loss | |||||||||||||||||||
| Gain from government securities | 2,972,721 | 13,454,678 | 4,032,581 | 9,743,511 | |||||||||||||||
| Gain from private securities | 90,591 | 214,976 | 31,661 | 249,023 | |||||||||||||||
| Gain from derivative financial instruments | |||||||||||||||||||
| Forward transactions | 2,024 | 95,536 | |||||||||||||||||
| Loss from other financial assets | (1,120 | ) | (7,601 | ) | (3,819 | ) | (1,496 | ) | |||||||||||
| Loss/Gain from equity instruments at fair value through profit or loss | (146,361 | ) | 294,137 | (162,795 | ) | 127,046 | |||||||||||||
| Gain from sales or decreases of financial assets at fair value (1) | 414,400 | 407,165 | 905,245 | 912,579 | |||||||||||||||
| For measurement of financial liabilities at fair value through profit or loss | |||||||||||||||||||
| Loss from derivative financial instruments | |||||||||||||||||||
| Forward transactions | (71,496 | ) | (77,346 | ) | |||||||||||||||
| Total | 3,258,735 | 14,286,009 | 4,804,897 | 11,126,199 | |||||||||||||||
| (1) | Net amount of reclassifications to profit of instruments classified at fair value through other comprehensive<br>income that were derecognized or charged during the period. | ||||||||||||||||||
| --- | --- | ||||||||||||||||||
| - 128 - | Delfín Jorge Ezequiel Carballo<br> Chairperson | ||||||||||||||||||
| --- | --- | ||||||||||||||||||
| EXHIBIT Q | |||||||||||||||||||
| --- | --- | ||||||||||||||||||
| (Continued) | |||||||||||||||||||
| BREAKDOWN OF STATEMENT OF INCOME | |||||||||||||||||||
| FOR THE THREE AND NINE MONTH PERIODS ENDED SEPTEMBER 30, 2021 AND 2020 | |||||||||||||||||||
| (Translation of the Financial statements originally issued in Spanish – See Note 40) | |||||||||||||||||||
| (Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of September 30, 2021, except that indicated otherwise) | |||||||||||||||||||
| Net financial income/ (Loss) | |||||||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | |||||||
| Interest and adjustment for the<br><br> application of the effective interest <br><br>rate of financial assets measured at <br><br>amortized cost | Quarter ended<br><br> 09/30/2021 | Accumulated<br><br> from beginning<br><br> of year up to<br><br> 09/30/2021 | Quarter ended<br><br> 09/30/2020 | Accumulated<br><br> from beginning<br><br> of year up to<br><br> 09/30/2020 | |||||||||||||||
| Interest income | |||||||||||||||||||
| for cash and bank deposits | 2,911 | 9,273 | 43,856 | 172,366 | |||||||||||||||
| for government securities | 1,271,331 | 5,572,745 | 2,086,819 | 6,705,341 | |||||||||||||||
| for private securities | 43,698 | 239,809 | 402,181 | 1,980,852 | |||||||||||||||
| for loans and other financing | |||||||||||||||||||
| Non-financial public sector | 359,834 | 1,365,271 | 884,892 | 3,369,768 | |||||||||||||||
| Financial sector | 138,913 | 487,406 | 299,554 | 1,145,584 | |||||||||||||||
| Non-financial private sector | |||||||||||||||||||
| Overdrafts | 1,812,313 | 5,461,890 | 2,092,210 | 12,929,804 | |||||||||||||||
| Documents | 2,315,439 | 5,785,398 | 1,214,865 | 4,914,895 | |||||||||||||||
| Mortgage loans | 2,998,737 | 10,412,244 | 2,365,930 | 7,922,022 | |||||||||||||||
| Pledge loans | 255,792 | 548,945 | 161,094 | 503,567 | |||||||||||||||
| Personal loans | 10,611,172 | 32,638,789 | 10,911,028 | 33,873,068 | |||||||||||||||
| Credit cards | 3,177,798 | 9,562,375 | 3,812,883 | 12,285,634 | |||||||||||||||
| Financial leases | 15,464 | 42,812 | 16,486 | 66,076 | |||||||||||||||
| Other | 3,220,551 | 10,884,122 | 5,321,791 | 13,298,920 | |||||||||||||||
| for repo transactions | |||||||||||||||||||
| Central Bank of Argentina | 2,185,885 | 6,173,180 | 3,193,754 | 6,155,834 | |||||||||||||||
| Other financial institutions | 5,395 | 40,272 | 15,139 | 89,012 | |||||||||||||||
| Total | 28,415,233 | 89,224,531 | 32,822,482 | 105,412,743 | |||||||||||||||
| Interest expenses | |||||||||||||||||||
| for deposits | |||||||||||||||||||
| Non-financial private sector | |||||||||||||||||||
| Checking accounts | (98,069 | ) | (1,065,398 | ) | (645,496 | ) | (1,036,373 | ) | |||||||||||
| Saving accounts | (259,818 | ) | (845,894 | ) | (189,573 | ) | (643,558 | ) | |||||||||||
| Time deposits and investments accounts | (18,840,737 | ) | (61,197,001 | ) | (21,578,508 | ) | (50,095,706 | ) | |||||||||||
| for Financing received from Central Bank of Argentina and other financial institutions | (23,088 | ) | (123,442 | ) | (27,172 | ) | (88,402 | ) | |||||||||||
| For repo transactions | |||||||||||||||||||
| Other financial institutions | (73,506 | ) | (212,792 | ) | (2,584 | ) | (149,132 | ) | |||||||||||
| for other financial liabilities | (4,842 | ) | (15,776 | ) | (12,112 | ) | (67,563 | ) | |||||||||||
| Issued corporate bonds | (110,055 | ) | (681,784 | ) | (529,760 | ) | (1,611,492 | ) | |||||||||||
| for subordinated corporate bonds | (733,350 | ) | (2,302,543 | ) | (842,054 | ) | (2,451,903 | ) | |||||||||||
| Total | (20,143,465 | ) | (66,444,630 | ) | (23,827,259 | ) | (56,144,129 | ) | |||||||||||
| - 129 - | Delfín Jorge Ezequiel Carballo<br> Chairperson | ||||||||||||||||||
| --- | --- | ||||||||||||||||||
| EXHIBIT Q | |||||||||||||||||||
| --- | --- | ||||||||||||||||||
| (Continued) | |||||||||||||||||||
| BREAKDOWN OF STATEMENT OF INCOME | |||||||||||||||||||
| FOR THE THREE AND NINE MONTH PERIODS ENDED SEPTEMBER 30, 2021 AND 2020 | |||||||||||||||||||
| (Translation of the Financial statements originally issued in Spanish – See Note 40) | |||||||||||||||||||
| (Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of September 30, 2021, except that indicated otherwise) | |||||||||||||||||||
| Interest and adjustment for the application of the | Income<br> of the period | Other<br> comprehensive income | Income<br> of the period | Other<br> comprehensive income | |||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| effective<br> interest rate<br><br> of financial assets <br><br> measured at fair value <br><br> through other <br><br> comprehensive income | Quarter<br> ended<br><br> 09/30/2021 | Accumulated<br><br> from<br><br> beginning of<br><br> year up to<br><br> 09/30/2021 | Quarter<br><br> ended<br><br> 09/30/2021 | Accumulated<br><br> from<br><br> beginning of<br><br> year up to<br><br> 09/30/2021 | Quarter<br><br> ended<br><br> 09/30/2020 | Accumulated<br><br> from<br><br> beginning of<br><br> year up to<br><br> 09/30/2020 | Quarter<br><br> ended<br><br> 09/30/2020 | Accumulated<br><br> from<br><br> beginning of<br><br> year up to<br><br> 09/30/2020 | |||||||||||
| From<br> debt government securities | 21,423,767 | 63,539,118 | (249,362 | ) | 156,151 | 23,364,766 | 52,662,503 | (302,614 | ) | (960,765 | ) | ||||||||
| Total | 21,423,767 | 63,539,118 | (249,362 | ) | 156,151 | 23,364,766 | 52,662,503 | (302,614 | ) | (960,765 | ) | ||||||||
| Income of the period | |||||||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | |||||||
| Items | Quarter <br><br>ended<br><br> 09/30/2021 | Accumulated<br><br> from<br><br> beginning of<br><br> year up to<br><br> 09/30/2021 | Quarter<br><br> ended<br><br> 09/30/2020 | Accumulated<br><br> from<br><br> beginning of<br><br> year up to<br><br> 09/30/2020 | |||||||||||||||
| Commissions income | |||||||||||||||||||
| Commissions related to obligations | 4,823,784 | 13,667,304 | 4,599,442 | 13,494,567 | |||||||||||||||
| Commissions related to credits | 36,128 | 98,766 | 42,504 | 207,401 | |||||||||||||||
| Commissions related to loans commitments and financial guarantees | 981 | 2,441 | 157 | 691 | |||||||||||||||
| Commissions related to securities value | 65,434 | 187,164 | 50,754 | 137,539 | |||||||||||||||
| Commissions to credit cards | 2,897,491 | 8,310,225 | 3,076,003 | 8,945,161 | |||||||||||||||
| Commissions to insurances | 500,931 | 1,535,835 | 548,500 | 1,631,858 | |||||||||||||||
| Commissions related to trading and foreign exchange transactions | 218,282 | 606,866 | 247,461 | 577,131 | |||||||||||||||
| Total | 8,543,031 | 24,408,601 | 8,564,821 | 24,994,348 | |||||||||||||||
| Commissions expenses | |||||||||||||||||||
| Commissions related to trading and foreign exchange transactions | (46,394 | ) | (79,405 | ) | (45,846 | ) | (126,195 | ) | |||||||||||
| Other | |||||||||||||||||||
| Commissions paid ATM exchange | (477,149 | ) | (1,357,229 | ) | (412,966 | ) | (1,214,590 | ) | |||||||||||
| Checkbooks commissions and compensating cameras | (155,852 | ) | (429,967 | ) | (148,441 | ) | (424,880 | ) | |||||||||||
| Commissions Credit cards and foreign trade | (82,732 | ) | (247,639 | ) | (86,182 | ) | (267,642 | ) | |||||||||||
| Total | (762,127 | ) | (2,114,240 | ) | (693,435 | ) | (2,033,307 | ) | |||||||||||
| - 130 - | Delfín Jorge Ezequiel Carballo<br> Chairperson | ||||||||||||||||||
| --- | --- | ||||||||||||||||||
| EXHIBIT R | |||||||||||||||||||
| --- | |||||||||||||||||||
| VALUE ADJUSTMENT FOR CREDIT LOSSES - ALLOWANCES FOR UNCOLLECTIBILITY RISK | |||||||||||||||||||
| AS OF SEPTEMBER 30, 2021 | |||||||||||||||||||
| (Translation of the Financial statements originally issued in Spanish – See Note 40) | |||||||||||||||||||
| (Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of September 30, 2021, except that indicated otherwise) | |||||||||||||||||||
| Movements between stages of period | |||||||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | |||
| ECL of remanent life of financial asset | |||||||||||||||||||
| Item | Amounts at<br><br> beginning of<br><br> the fiscal<br><br> year | ECL of the next<br><br> 12 months | Financial<br><br> instruments with<br><br> a significant<br><br> increase in credit<br><br> risk | Financial<br><br> instruments with<br><br> impairment | Effect<br><br> monetary<br><br> generated for<br><br> provisions | 09/30/2021 | |||||||||||||
| Other financial assets | 25,922 | 6,975 | (7,501 | ) | 25,396 | ||||||||||||||
| Loans and other financing | 13,728,250 | (3,093,529 | ) | (1,897 | ) | 2,188,082 | (3,670,636 | ) | 9,150,270 | ||||||||||
| Other financial institutions | 22,752 | (13,545 | ) | (4,939 | ) | 4,268 | |||||||||||||
| To the non-financial private sector and foreign residents | |||||||||||||||||||
| Overdrafts | 939,167 | 47,534 | 217,147 | (595,383 | ) | (184,107 | ) | 424,358 | |||||||||||
| Documents | 732,207 | 153,322 | 40,500 | 11,646 | (191,340 | ) | 746,335 | ||||||||||||
| Mortgage loans | 1,031,223 | (29,966 | ) | (16,607 | ) | 89,205 | (295,689 | ) | 778,166 | ||||||||||
| Pledge loans | 183,997 | (16,188 | ) | (25,913 | ) | 40,486 | (52,561 | ) | 129,821 | ||||||||||
| Personal loans | 3,897,464 | (936,767 | ) | 303,135 | 1,748,676 | (1,269,635 | ) | 3,742,873 | |||||||||||
| Credit cards | 4,641,323 | (1,836,216 | ) | (542,578 | ) | 739,165 | (1,104,005 | ) | 1,897,689 | ||||||||||
| Financial leases | 13,761 | 357 | (70 | ) | (5,096 | ) | (3,063 | ) | 5,889 | ||||||||||
| Other | 2,266,356 | (462,060 | ) | 22,489 | 159,383 | (565,297 | ) | 1,420,871 | |||||||||||
| Eventual commitments | 23,566 | 220,220 | 51,085 | (14,921 | ) | 279,950 | |||||||||||||
| Other debt securities | 1,839 | (1,116 | ) | (323 | ) | 400 | |||||||||||||
| Total allowances | 13,779,577 | (2,867,450 | ) | 49,188 | 2,188,082 | (3,693,381 | ) | 9,456,016 | |||||||||||
| VALUE ADJUSTMENT FOR CREDIT LOSSES - ALLOWANCES FOR UNCOLLECTIBILITY RISK | |||||||||||||||||||
| --- | |||||||||||||||||||
| AS OF DECEMBER 31, 2020 | |||||||||||||||||||
| (Translation of the Financial statements originally issued in Spanish – See Note 40) | |||||||||||||||||||
| (Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of September 30, 2021, except that indicated otherwise) | |||||||||||||||||||
| Movements between stages of period | |||||||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | |||
| ECL of remanent life of financial asset | |||||||||||||||||||
| Item | Amounts at<br><br> beginning of<br><br> the fiscal <br><br>year | ECL of the next<br><br> 12 months | Financial<br><br> instruments with<br><br> a significant <br><br>increase in credit <br><br>risk | Financial<br><br> instruments with<br><br> impairment | Effect <br><br>monetary<br><br> generated for<br><br> provisions | 12/31/2020 | |||||||||||||
| Other financial assets | 19,217 | 15,501 | (8,796 | ) | 25,922 | ||||||||||||||
| Loans and other financing | 9,444,156 | 5,771,913 | 2,757,918 | (653,825 | ) | (3,591,912 | ) | 13,728,250 | |||||||||||
| Other financial institutions | 51,458 | (17,876 | ) | (10,830 | ) | 22,752 | |||||||||||||
| To the non-financial private sector and foreign residents | |||||||||||||||||||
| Overdrafts | 1,438,916 | 18,624 | 1,728 | (29,456 | ) | (490,645 | ) | 939,167 | |||||||||||
| Documents | 684,839 | 189,935 | 115,519 | (42,427 | ) | (215,659 | ) | 732,207 | |||||||||||
| Mortgage loans | 714,204 | 143,798 | 413,617 | 5,380 | (245,776 | ) | 1,031,223 | ||||||||||||
| Pledge loans | 240,623 | 33,714 | 9,827 | (23,624 | ) | (76,543 | ) | 183,997 | |||||||||||
| Personal loans | 3,425,892 | 1,251,780 | 684,093 | (321,952 | ) | (1,142,349 | ) | 3,897,464 | |||||||||||
| Credit cards | 1,478,699 | 2,964,120 | 1,101,244 | (100,700 | ) | (802,040 | ) | 4,641,323 | |||||||||||
| Financial leases | 9,977 | (2,665 | ) | (1,081 | ) | 10,584 | (3,054 | ) | 13,761 | ||||||||||
| Other | 1,399,548 | 1,190,483 | 432,971 | (151,630 | ) | (605,016 | ) | 2,266,356 | |||||||||||
| Eventual commitments | 32,204 | 7,285 | (7,452 | ) | 478 | (8,949 | ) | 23,566 | |||||||||||
| Other debts securities | 3,612 | 364 | (2,137 | ) | 1,839 | ||||||||||||||
| Total allowances | 9,499,189 | 5,795,063 | 2,750,466 | (653,347 | ) | (3,611,794 | ) | 13,779,577 | |||||||||||
| - 131 - | Delfín Jorge Ezequiel Carballo<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: January 10, 2022
| MACRO BANK INC. | |
|---|---|
| By: | /s/ Jorge Francisco Scarinci |
| Name: Jorge Francisco Scarinci | |
| Title: Chief Financial Officer |