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
July 15, 2022
Commission File Number: 001-32827
MACRO BANK INC.
(Translation of registrant’s name into English)
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 | ¨ |
|---|
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 March 31, 2022 together with the reports on review of interim financial statements
| BANCO MACRO SA |
|---|
| CONDENSED INTERIM FINANCIAL STATEMENTS AS OF MARCH 31, 2022 |
| 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: Business combinations |
| Note 12: Investment in associates and joint arrangements |
| Note 13: Other non-financial assets |
| Note 14: Related parties |
| Note 15: Other financial liabilities |
| Note 16: Provisions |
| Note 17: Other non-financial liabilities |
| Note 18: Analysis of financial assets to be recovered and financial liabilities to be settled |
| Note 19: Disclosures by operating segment |
| Note 20: Income tax |
| Note 21: Commissions income |
| Note 22: Differences in quoted prices of gold and foreign currency |
| Note 23: Other operating income |
| Note 24: Employee benefits |
| Note 25: Administrative expenses |
| Note 26: Other operating expenses |
| Note 27: Additional disclosures in the statement of cash flows |
| Note 28: Capital stock |
| Note 29: Earnings per share – Dividends |
| Note 30: Deposit guarantee insurance |
| Note 31: Restricted assets |
| BANCO MACRO SA |
| --- |
| CONDENSED INTERIM FINANCIAL STATEMENTS AS OF MARCH 31, 2022 |
| CONTENT (contd.) |
| Notes to the condensed consolidated interim financial statements (contd.) |
| Note 32: Trust activities |
| Note 33: Compliance with CNV regulations |
| Note 34: Accounting items that identify the compliance with minimum cash requirements |
| Note 35: Penalties applied to the entity and summary proceedings initiated by the BCRA |
| Note 36: Corporate bonds issuance |
| Note 37: Off balance sheet transactions |
| Note 38: Tax and other claims |
| Note 39: Restriction on dividends distribution |
| Note 40: Capital management, corporate governance transparency policy and risk management |
| Note 41: Changes in the Argentine macroeconomic environment and financial and capital markets |
| Note 42: Effects of the coronavirus (COVID–19) outbreak |
| Note 43: Events after reporting period |
| Note 44: Accounting principles – explanation added for translation into English |
| Condensed consolidated exhibits |
| Exhibit B: Classification of loans and other financing by situation and collateral received |
| Exhibit C: Concentration of loans and financing facilities |
| Exhibit D: Breakdown of loans and other financing by 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 |
| Condensed 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:Commercial bank
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 MARCH 31, 2022 AND DECEMBER 31, 2021 | ||||
| (Translation of the Financial statements originally issued in Spanish – See Note 44) | ||||
| (Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of March 31, 2022, except as otherwise indicated) | ||||
| Items | Notes | Exhibits | 03/31/2022 | 12/31/2021 |
| --- | --- | --- | --- | --- |
| ASSETS | ||||
| Cash and Deposits in Banks | 10 | 175,530,662 | 200,025,884 | |
| Cash | 32,105,319 | 30,902,976 | ||
| Central Bank of Argentina | 96,476,179 | 123,778,001 | ||
| Other Local and Foreign Entities | 46,886,294 | 45,337,448 | ||
| Other | 62,870 | 7,459 | ||
| Debt Securities at fair value through profit or loss | 5 and 10 | 32,243,512 | 37,614,226 | |
| Derivative Financial Instruments | 10 | 1,504 | ||
| Repo transactions | 10 | 36,452,615 | ||
| Other Financial Assets | 6, 7 and 10 | R | 24,944,864 | 40,786,731 |
| Loans and other financing | 7 and 10 | B, C, D and R | 373,888,227 | 408,984,539 |
| Non-financial Public Sector | 2,090,128 | 2,757,828 | ||
| Other Financial Entities | 708,873 | 1,752,948 | ||
| Non-financial Private Sector and Foreign Residents | 371,089,226 | 404,473,763 | ||
| Other Debt Securities | 7, 8 and 10 | R | 422,907,382 | 331,935,881 |
| Financial Assets delivered as guarantee | 10 and 31 | 32,047,903 | 20,851,057 | |
| Current Income Tax Assets | 20 | 197,230 | 630,768 | |
| Equity Instruments at fair value through profit or loss | 9 and 10 | 476,438 | 2,529,734 | |
| Investment in associates and joint arrangements | 12 | 652,301 | 568,166 | |
| Property, plant and equipment | F | 60,911,675 | 61,368,622 | |
| Intangible Assets | G | 9,717,578 | 9,754,821 | |
| Deferred Income Tax Assets | 20 | 42,257 | 55,470 | |
| Other Non-financial Assets | 13 | 3,325,866 | 2,706,307 | |
| Non-current Assets held for sale | 3,748,015 | 3,762,423 | ||
| TOTAL ASSETS | 1,140,633,910 | 1,158,028,748 |
| - 1 - | Delfín Jorge Ezequiel Carballo<br> Chairperson |
| --- | --- | | CONDENSED CONSOLIDATED INTERIM STATEMENT OF FINANCIAL POSITION | | --- | | AS OF MARCH 31, 2022 AND DECEMBER 31, 2021 | | (Translation of the Financial statements originally issued in Spanish – See Note 44) | | (Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of March 31, 2022, except as otherwise indicated) | | Items | Notes | Exhibits | 03/31/2022 | 12/31/2021 | | | --- | --- | --- | --- | --- | --- | | LIABILITIES | | | | | | | Deposits | 10 | H and I | 677,544,730 | 683,477,170 | | | Non-financial Public Sector | | | 78,854,292 | 65,466,238 | | | Financial Sector | | | 1,033,773 | 1,115,653 | | | Non-financial Private Sector and Foreign Residents | | | 597,656,665 | 616,895,279 | | | Liabilities at fair value through profit or loss | 10 | I | 461,253 | 1,889,304 | | | Derivative Financial Instruments | 10 | I | 7,453 | 2,939 | | | Repo Transactions | 10 | I | 11,853,813 | | | | Other Financial Liabilities | 10 and 15 | I | 59,738,262 | 78,852,081 | | | Financing received from the Central Bank of Argentina and other financial institutions | 10 | I | 2,008,345 | 508,067 | | | Issued Corporate Bonds | 10 and 36 | I | 3,096,173 | 3,471,423 | | | Current Income Tax Liabilities | 20 | | 554,007 | 407,750 | | | Subordinated Corporate Bonds | 10 and 36 | I | 46,028,349 | 48,719,287 | | | Provisions | 16 | J and R | 2,002,027 | 1,905,371 | | | Deferred Income Tax Liabilities | 20 | | 7,559,977 | 6,606,742 | | | Other Non-financial Liabilities | 17 | | 47,419,382 | 55,238,906 | | | TOTAL LIABILITIES | | | 858,273,771 | 881,079,040 | | | SHAREHOLDERS’ EQUITY | | | | | | | Capital Stock | 28 | | 639,413 | 639,413 | | | Non-capital contributions | | | 12,429,781 | 12,429,781 | | | Adjustments to Shareholders’ Equity | | | 97,975,071 | 97,975,071 | | | Earnings Reserved | | | 141,403,232 | 141,403,232 | | | Unappropriated Retained Earnings | | | 21,127,200 | (10,353,793 | ) | | Accumulated Other Comprehensive Income | | | 2,733,587 | 3,331,043 | | | Net Income of the period / fiscal year | | | 6,019,703 | 31,480,993 | | | Net Shareholders’ Equity attributable to controlling interest | | | 282,327,987 | 276,905,740 | | | Net Shareholders’ Equity attributable to non-controlling interests | | | 32,152 | 43,968 | | | TOTAL SHAREHOLDERS’ EQUITY | | | 282,360,139 | 276,949,708 | | | TOTAL SHAREHOLDERS’ EQUITY AND LIABILITIES | | | 1,140,633,910 | 1,158,028,748 | |
The notes 1 to 44 to the condensed consolidated interim financial statements and exhibits B to D, F to J, L, Q and R are an integral part of the condensed consolidated interim financial statements.
| - 2 - | Delfín Jorge Ezequiel Carballo<br> Chairperson |
| --- | --- |
CONDENSED CONSOLIDATED INTERIM STATEMENT OF INCOME FOR THE THREE MONTH PERIODS ENDED MARCH 31, 2022 AND 2021
(Translation of the Financial statements originally issued in Spanish – See Note 44)
(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of March 31, 2022, except as otherwise indicated)
| Items | Notes | Exhibits | Quarter ended<br><br>03/31/2022 | Quarter ended<br><br>03/31/2021 | ||||
|---|---|---|---|---|---|---|---|---|
| Interest income | Q | 68,847,519 | 69,946,106 | |||||
| Interest expense | Q | (26,936,813 | ) | (32,985,618 | ) | |||
| Net Interest income | 41,910,706 | 36,960,488 | ||||||
| Commissions income | 21 | Q | 11,272,601 | 10,125,950 | ||||
| Commissions expense | Q | (1,057,205 | ) | (930,525 | ) | |||
| Net Commissions income | 10,215,396 | 9,195,425 | ||||||
| Subtotal (Net Interest income + Net Commissions income) | 52,126,102 | 46,155,913 | ||||||
| Profit from measurement of financial instruments at fair value through profit or loss | Q | 6,448,472 | 7,075,217 | |||||
| Profit from sold or derecognized assets at amortized cost | 92,480 | |||||||
| Differences in quoted prices of gold and foreign currency | 22 | 3,085,246 | 1,886,516 | |||||
| Other operating income | 23 | 3,261,897 | 2,557,864 | |||||
| Allowance for loan losses | (744,948 | ) | (3,731 | ) | ||||
| Net Operating Income | 64,176,769 | 57,764,259 | ||||||
| Employee benefits | 24 | (9,811,358 | ) | (11,257,253 | ) | |||
| Administrative expenses | 25 | (5,513,912 | ) | (5,296,436 | ) | |||
| Depreciation and amortization of fixed assets | F and G | (2,191,958 | ) | (1,997,670 | ) | |||
| Other Operating Expenses | 26 | (10,122,642 | ) | (9,860,157 | ) | |||
| Operating Income | 36,536,899 | 29,352,743 | ||||||
| (Loss) / Income from associates and joint arrangements | 12 | (35,963 | ) | 35,727 | ||||
| Loss on net monetary position | (28,917,241 | ) | (22,401,531 | ) | ||||
| Income before tax on continuing operations | 7,583,695 | 6,986,939 | ||||||
| Income tax on continuing operations | 20.c) | (1,575,808 | ) | (3,594,097 | ) | |||
| Net Income from continuing operations | 6,007,887 | 3,392,842 | ||||||
| Net Income of the period | 6,007,887 | 3,392,842 | ||||||
| Net Income of the period attributable to controlling interest | 6,019,703 | 3,392,736 | ||||||
| Net Income of the period attributable to non-controlling interest | (11,816 | ) | 106 | |||||
| - 3 - | Delfín Jorge Ezequiel Carballo<br> Chairperson | |||||||
| --- | --- | |||||||
| CONSOLIDATED EARNINGS PER SHARE | ||||||||
| --- | ||||||||
| FOR THE THREE MONTH PERIODS ENDED MARCH 31, 2022 AND 2021 | ||||||||
| (Translation of the Financial statements originally issued in Spanish – See Note 44) | ||||||||
| (Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of March 31, 2022, except as otherwise indicated) | ||||||||
| Items | Quarter ended<br><br>03/31/2022 | Quarter ended<br><br>03/31/2021 | ||||||
| --- | --- | --- | --- | --- | ||||
| Net Profit attributable to Parent’s shareholders | 6,019,703 | 3,392,736 | ||||||
| Plus: Potential diluted earnings per common share | ||||||||
| Net Profit attributable to Parent’s shareholders adjusted as per diluted earnings | 6,019,703 | 3,392,736 | ||||||
| Weighted average of outstanding common shares of the period | 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 | ||||||
| Basic earnings per share (in pesos) | 9.4144 | 5.3060 | ||||||
| - 4 - | Delfín Jorge Ezequiel Carballo<br> Chairperson | |||||||
| --- | --- | |||||||
| CONDENSED CONSOLIDATED INTERIM STATEMENT OF OTHER COMPREHENSIVE INCOME | ||||||||
| --- | ||||||||
| FOR THE THREE MONTH PERIODS ENDED MARCH 31, 2022 AND 2021 | ||||||||
| (Translation of the Financial statements originally issued in Spanish – See Note 44) | ||||||||
| (Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of March 31, 2022, except as otherwise indicated) | ||||||||
| Items | Notes | Exhibits | Quarter ended<br><br>03/31/2022 | Quarter ended<br><br>03/31/2021 | ||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Net Income of the period | 6,007,887 | 3,392,842 | ||||||
| Items of Other Comprehensive Income that will be reclassified to profit or loss | ||||||||
| Foreign currency translation differences in financial statements conversion | (258,116 | ) | (149,985 | ) | ||||
| Foreign currency translation differences of the period | (258,116 | ) | (149,985 | ) | ||||
| Profit or loss for financial instruments measured at fair value through other comprehensive income (FVOCI) (IFRS 9(4.1.2)(a)) | (339,340 | ) | 1,061,865 | |||||
| Profit or loss for the period from financial instruments at fair value through other comprehensive income (FVOCI) | Q | (1,621,464 | ) | 491,991 | ||||
| Adjustment for reclassification of period | 1,114,680 | 990,538 | ||||||
| Income tax | 20.c) | 167,444 | (420,664 | ) | ||||
| Total Other Comprehensive (Loss) / Income that is subsequently reclassified to profit or loss | (597,456 | ) | 911,880 | |||||
| Total Other Comprehensive (Loss) / Income | (597,456 | ) | 911,880 | |||||
| Total Comprehensive Income of the period | 5,410,431 | 4,304,722 | ||||||
| Total Comprehensive Income attributable to controlling interest | 5,422,247 | 4,304,616 | ||||||
| Total Comprehensive Income attributable to non-controlling interest | (11,816 | ) | 106 |
The notes 1 to 44 to the condensed consolidated interim financial statements and exhibits B to D, F to J, L, Q and R are an integral part of the condensed consolidated interim financial statements.
| - 5 - | Delfín Jorge Ezequiel Carballo<br> Chairperson | |||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| CONDENSED CONSOLIDATED INTERIM STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY | ||||||||||||||||||||||||||||
| --- | ||||||||||||||||||||||||||||
| FOR THE THREE MONTH PERIOD ENDED MARCH 31, 2022 | ||||||||||||||||||||||||||||
| (Translation of the Financial statements originally issued in Spanish – See Note 44) | ||||||||||||||||||||||||||||
| (Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of March 31, 2022, except as otherwise indicated) | ||||||||||||||||||||||||||||
| Capital<br> stock | Non-capital<br> Contributions | Other Comprehensive<br> Income | Earnings Reserved | |||||||||||||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Changes | Notes | Outstanding<br> shares | Additional<br> paid-in<br> capital | Adjustments<br> to<br> Shareholders’<br> Equity | Accumulated<br><br> foreign<br> currency<br> translation<br> difference in<br> financial<br> statements<br> conversion | Other | Legal | Other | Unappropriated<br> Retained<br> Earnings | Total<br> Controlling<br> Interests | Total<br> Non-Controlling<br> Interests | Total <br> Equity | ||||||||||||||||
| Restated amount at the beginning of the fiscal year | 639,413 | 12,429,781 | 97,975,071 | 696,593 | 2,634,450 | 56,222,032 | 85,181,200 | 21,127,200 | 276,905,740 | 43,968 | 276,949,708 | |||||||||||||||||
| Total comprehensive income of the period | ||||||||||||||||||||||||||||
| - Net income of the period | 6,019,703 | 6,019,703 | (11,816 | ) | 6,007,887 | |||||||||||||||||||||||
| - Other comprehensive loss of the period | (258,116 | ) | (339,340 | ) | (597,456 | ) | (597,456 | ) | ||||||||||||||||||||
| Amount at the end of the period | 639,413 | 12,429,781 | 97,975,071 | 438,477 | 2,295,110 | 56,222,032 | 85,181,200 | 27,146,903 | 282,327,987 | 32,152 | 282,360,139 | |||||||||||||||||
| CONDENSED CONSOLIDATED INTERIM STATEMENTOF CHANGES IN SHAREHOLDERS’ EQUITY | ||||||||||||||||||||||||||||
| --- | ||||||||||||||||||||||||||||
| FOR THE THREE MONTH PERIOD ENDED MARCH 31, 2021 | ||||||||||||||||||||||||||||
| (Translation of the Financial statements originally issued in Spanish – See Note 44) | ||||||||||||||||||||||||||||
| (Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of March 31, 2022, except as otherwise indicated) | ||||||||||||||||||||||||||||
| Capital<br> stock | Non-capital<br> Contributions | Other Comprehensive<br> Income | Earnings Reserved | |||||||||||||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | |||
| Changes | Notes | Outstanding<br> shares | Additional<br> paid-in<br> capital | Adjustments to<br> Shareholders’<br> Equity | Accumulated<br> foreign<br> currency<br> translation<br> difference in<br> financial<br> statements<br> conversion | Other | Legal | Other | Unappropriated<br> Retained<br> Earnings | Total<br> Controlling<br> Interests | Total <br> Non-Controlling <br> Interests | Total <br> Equity | ||||||||||||||||
| Restated amount at the beginning of the fiscal year | 639,413 | 12,429,781 | 97,975,071 | 1,586,075 | 382,672 | 56,222,032 | 136,173,707 | (45,978,192 | ) | 259,430,559 | 3,274 | 259,433,833 | ||||||||||||||||
| Total comprehensive income of the period | ||||||||||||||||||||||||||||
| - Net income of the period | 3,392,736 | 3,392,736 | 106 | 3,392,842 | ||||||||||||||||||||||||
| - Other comprehensive income of the period | (149,985 | ) | 1,061,865 | 911,880 | 911,880 | |||||||||||||||||||||||
| Amount at the end of the period | 639,413 | 12,429,781 | 97,975,071 | 1,436,090 | 1,444,537 | 56,222,032 | 136,173,707 | (42,585,456 | ) | 263,735,175 | 3,380 | 263,738,555 |
The notes 1 to 44 to the condensed consolidated interim financial statements and exhibits B to D, F to J, L, Q and R are an integral part of the condensed consolidated interim financial statements.
| - 6 - | Delfín Jorge Ezequiel Carballo<br> Chairperson | ||||||
|---|---|---|---|---|---|---|---|
| CONDENSED CONSOLIDATED INTERIM STATEMENT OF CASH FLOWS | |||||||
| --- | |||||||
| FOR THE THREE MONTH PERIODS ENDED MARCH 31, 2022 AND 2021 | |||||||
| (Translation of the Financial statements originally issued in Spanish – See Note 44) | |||||||
| (Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of March 31, 2022, except as otherwise indicated) | |||||||
| Items | Notes | 03/31/2022 | 03/31/2021 | ||||
| --- | --- | --- | --- | --- | --- | --- | --- |
| Cash flows from operating activities | |||||||
| Income of the period before Income Tax | 7,583,695 | 6,986,939 | |||||
| Adjustment for the total monetary effect of the period | 28,917,241 | 22,401,531 | |||||
| Adjustments to obtain cash flows from operating activities: | |||||||
| Amortization and depreciation | 2,191,958 | 1,997,670 | |||||
| Allowance for loan losses | 744,948 | 3,731 | |||||
| Difference in quoted prices of foreign currency | (7,049,827 | ) | (10,874,616 | ) | |||
| Other adjustments | 14,117,912 | 22,148,336 | |||||
| Net increase / (decrease) from operating assets: | |||||||
| Debt Securities at fair value through profit or loss | 5,453,560 | 36,796,149 | |||||
| Derivative financial instruments | 1,504 | 12,670 | |||||
| Repo transactions | 36,452,615 | 49,072,678 | |||||
| Loans and other financing | |||||||
| Non-financial public sector | 667,700 | 1,230,464 | |||||
| Other financial entities | 1,044,075 | (936,613 | ) | ||||
| Non-financial private sector and foreign residents | 32,550,468 | 39,352,033 | |||||
| Other debt securities | (35,812,231 | ) | (3,635,478 | ) | |||
| Financial assets delivered as guarantee | (11,196,846 | ) | 3,725,830 | ||||
| Equity instruments at fair value through profit or loss | 2,053,296 | (276,149 | ) | ||||
| Other assets | 15,610,123 | 5,895,915 | |||||
| Net increase / (decrease) from operating liabilities: | |||||||
| Deposits | |||||||
| Non-financial public sector | 13,388,054 | (43,016,007 | ) | ||||
| Financial sector | (81,880 | ) | (144,172 | ) | |||
| Non-financial private sector and foreign residents | (19,238,614 | ) | (103,819,949 | ) | |||
| Liabilities at fair value through profit or loss | (1,359,367 | ) | |||||
| Derivative financial instruments | 4,514 | (393 | ) | ||||
| Repo transactions | 11,853,813 | (1,083,722 | ) | ||||
| Other liabilities | (22,479,090 | ) | (12,026,874 | ) | |||
| Income Tax Payments | (32,554 | ) | (2,646,129 | ) | |||
| Total cash from operating activities (A) | 75,385,067 | 11,163,844 | |||||
| - 7 - | Delfín Jorge Ezequiel Carballo<br> Chairperson | ||||||
| --- | --- | ||||||
| CONDENSED CONSOLIDATED INTERIM STATEMENT OF CASH FLOWS | |||||||
| --- | |||||||
| FOR THE THREE MONTH PERIODS ENDED MARCH 31, 2022 AND 2021 | |||||||
| (Translation of the Financial statements originally issued in Spanish – See Note 44) | |||||||
| (Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of March 31, 2022, except as otherwise indicated) | |||||||
| Items | Notes | 03/31/2022 | 03/31/2021 | ||||
| --- | --- | --- | --- | --- | --- | --- | --- |
| Cash flows from investing activities | |||||||
| Payments: | |||||||
| Acquisition of PPE, intangible assets and other assets | (1,531,078 | ) | (2,002,439 | ) | |||
| Total cash used in investing activities (B) | (1,531,078 | ) | (2,002,439 | ) | |||
| Cash flows from financing activities | |||||||
| Payments: | |||||||
| Non-subordinated corporate bonds | (354,162 | ) | |||||
| Subordinated Corporate Bonds | (20,742 | ) | |||||
| Other payments related to financing activities | (127,578 | ) | (221,611 | ) | |||
| Collections / Incomes: | |||||||
| Financing to local financial entities | 1,560,812 | 240,519 | |||||
| Total cash used in financing activities (C) | 1,412,492 | (335,254 | ) | ||||
| Effect of exchange rate fluctuations (D) | 10,711,946 | 16,285,169 | |||||
| Monetary effect on cash and cash equivalents (E) | (55,272,949 | ) | (54,966,671 | ) | |||
| Net increase / (decrease) in cash and cash equivalents (A+B+C+D+E) | 30,705,478 | (29,855,351 | ) | ||||
| Restated cash and cash equivalents at the beginning of the fiscal year | 27 | 359,736,989 | 461,828,872 | ||||
| Cash and cash equivalents at the end of the period | 27 | 390,442,467 | 431,973,521 |
The notes 1 to 44 to the condensed consolidated interim financial statements and exhibits B to D, F to J, L, Q and R are an integral part of the condensed consolidated interim financial statements.
| - 8 - | Delfín Jorge Ezequiel Carballo<br> Chairperson |
|---|
NOTES TO THE CONDENSED CONSOLIDATED INTERIMFINANCIAL STATEMENTS
AS OF MARCH 31, 2022
(Translation of Financial statements originally issued in Spanish – See Note 44)
(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of March 31, 2022, except as otherwise indicated)
| 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, electronic payments services and granting of guarantees.
Macro Compañía Financiera SA was created in 1977, as a non-banking financial institution. In May 1988, it received the authorization to operate as a commercial bank and was incorporated as Banco Macro SA. Subsequently, as a result of the merger process with other entities, it adopted other names (among them, Banco Macro Bansud SA) and since August 2006, Banco Macro SA.
The Bank’s shares 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 January 17, 2022, the Bank made a new irrevocable capital contribution for an amount of 130,758 (not restated). 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. The amount paid on October 15, 2021 was 33,488 (not restated). As it was explained in note 3 to the consolidated financial statements as of December 31, 2021, already issued, Fintech SGR is a structured entity in which the Bank has control. The purpose of this company is to enable small and medium-sized companies (PyMES, for its acronym in Spanish), to have access to credit by granting guarantees.
In addition, on October 1, 2021 Banco Macro SA paid 50,850 (not restated) in order to purchase shares 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). See also note 12.
On May 23, 2022, the Board of Directors approved the issuance of these condensed consolidated interim financial statements.
| 2. | OPERATIONSOF THE BANK |
|---|---|
| 2.1. | Agreement with the Misiones Provincial Government |
| --- | --- |
The Bank and the Misiones Provincial Government entered into a special-relationship agreement whereby the Bank was appointed, for a five-year term since January 1, 1996, as the Provincial Government’s exclusive financial agent as well as revenue collection and obligation payment agent.
On November 25, 1999, December 28, 2006 and October 1, 2018 extensions to such agreement were agreed upon, making it currently effective through December 31, 2029.
As of March 31, 2022 and December 31, 2021, the deposits held by the Misiones Provincial Government with the Bank amounted to 15,222,352 and 10,530,303 (including 1,148,377 and 1,202,402, related to court deposits), respectively.
| - 9 - |
|---|
NOTES TO THE CONDENSED CONSOLIDATED INTERIMFINANCIAL STATEMENTS
AS OF MARCH 31, 2022
(Translation of Financial statements originally issued in Spanish – See Note 44)
(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of March 31, 2022, except as otherwise indicated)
| 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 March 31, 2022 and December 31, 2021, the deposits held by the Salta Provincial Government with the Bank amounted to 24,009,700 and 7,493,144 (including 2,368,283 and 2,554,483, related to court deposits), respectively.
| 2.3. | Agreement with the Jujuy Provincial Government |
|---|
The Bank and the Jujuy Provincial Government entered into a special-relationship agreement whereby the Bank was appointed, for a ten-year term since January 12, 1998, as the Provincial Government’s exclusive financial agent as well as revenue collection and obligation payment agent.
On April 29, 2005 and July 8, 2014, extensions to such agreement were agreed upon, making it currently effective through September 30, 2024.
As of March 31, 2022 and December 31, 2021, the deposits held by the Jujuy Provincial Government with the Bank amounted to 10,084,831 and 9,781,514 (including 1,533,905 and 2,215,621, related to court deposits), respectively.
| 2.4. | Agreement with the Tucumán Provincial Government |
|---|
The Bank acts as an exclusive financial agent and as revenue collection and obligation payment agent of the Tucumán Provincial Government, the Municipality of San Miguel de Tucumán and the Municipality of Yerba Buena. The services agreements with the Provincial and Municipal Governments are effective through years 2031, 2023 and 2025, respectively.
As of March 31, 2022 and December 31, 2021, 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 17,301,741 and 20,317,994 (including 5,486,589 and 5,954,216, related to court deposits), respectively.
Additionally, as of March 31, 2022 and December 31, 2021, the Bank granted loans to the Tucumán Provincial Government for an amount of 1,606,751 and 2,133,618, respectively.
| 3. | BASISFOR THE PREPARATION OF THESE FINANCIAL STATEMENTS AND APPLICABLE ACCOUNTING STANDARDS |
|---|
Presentation basis
Applicable Accounting Standards
These condensed consolidated interim financial statements of the Bank were prepared in accordance with the accounting framework established by the Central Bank of Argentina (BCRA, for its acronym in Spanish) in its Communiqué “A” 6114 as supplemented. Except for the exceptions established by the BCRA which are explained in the following paragraph, such framework is based on International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB) and adopted by the Argentine Federation of Professionals Councils in Economic Sciences (FACPCE, for its acronym in Spanish). The abovementioned international standards include the IFRS, the International Accounting Standards (IAS) and the interpretations developed by the IFRS Interpretations Committee (IFRIC) or former IFRIC (SIC).
| - 10 - |
|---|
NOTES TO THE CONDENSED CONSOLIDATED INTERIMFINANCIAL STATEMENTS
AS OF MARCH 31, 2022
(Translation of Financial statements originally issued in Spanish – See Note 44)
(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of March 31, 2022, except as otherwise indicated)
The transitory exceptions and regulatory guidelines established by BCRA to the application of effective IFRS, that affect the preparation of these condensed consolidated interim financial statements are as follows:
| a) | According to Communiqué “A” 6114, as supplemented, and in the convergence process through<br>IFRS, the BCRA established that since fiscal years beginning on or after January 1, 2020, financial institutions defined as “Group<br>A” by BCRA rules, in which the Bank is included, begin to apply section 5.5 “Impairment” of the IFRS 9 “Financial<br>Instruments” (sections B5.5.1 to B5.5.55), except for the temporary exclusion for the debt securities of the non-financial public<br>sector established by BCRA Communiqué “A” 6847. As of the date of issuance of these condensed consolidated interim<br>financial statements, the Bank is in the process of quantifying the effect of the full application of the abovementioned standard. |
|---|---|
| b) | As of December 31, 2021 the Bank measured its holding in Prisma Medios de Pago SA (Prisma), according<br>to the Memorandums received from the BCRA on March 12 and 22, 2021, which established specifics guidelines related to the measurement<br>of such holding. Taking into account such guidelines, the Bank adjusted its fair value previously determined (see note 9). On March 2022,<br>the shares related to the abovementioned holding were transferred, recording the profit for this transaction in the quarter ended March 31,<br>2022. If, for the fair value measurement purpose before mentioned, IFRS had been applied, the profit or loss for the previous fiscal<br>years and for the period ended March 31, 2022, should have been modified. However, this situation does not generate differences in<br>the shareholders’ equity as of March 31, 2022. |
| --- | --- |
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” 7411. 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 March 31, 2022, have been prepared in accordance with the accounting Framework established by the BCRA as mentioned in the previous section “Applicable accounting standards” which, particularly for condensed consolidated interim financial statements, is based on IAS 34 “Interim Financial Reporting”.
For the preparation of these condensed consolidated interim financial statements, in addition to section “measuring unit” of this note, the Bank has applied the basis for the preparation and consolidation, the accounting policies and the material accounting judgements, estimates and assumptions described in the consolidated financial statements for the fiscal year ended on December 31, 2021, 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, 2021, 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, 2021, already issued.
As of March 31, 2022 and December 31, 2021, the Bank has consolidated into its financial statements the financial statements of the following companies:
| Subsidiaries | Principal Place of Business | Country | Main Activity |
|---|---|---|---|
| Macro<br> Securities SA (1) and (2) | Ave.<br> Eduardo Madero 1182 – CABA | Argentina | Stock<br> exchange services |
| Macro<br> Fiducia SA | Ave.<br> Eduardo Madero 1182 – 2nd floor. CABA | Argentina | Services |
| Macro<br> Fondos SGFCISA | Ave.<br> Eduardo Madero 1182 – 24th floor, Office B–. CABA | Argentina | Management<br> and administration of mutual funds |
| Macro<br> Bank Limited (3) | Caves<br> Village, Building 8 Office 1 – West Bay St., Nassau | Bahamas | Banking<br> entity |
- 11 -
NOTES TO THE CONDENSED CONSOLIDATED INTERIMFINANCIAL STATEMENTS
AS OF MARCH 31, 2022
(Translation of Financial statements originally issued in Spanish – See Note 44)
(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of March 31, 2022, except as otherwise indicated)
| Subsidiaries | Principal Place of Business | Country | Main Activity |
|---|---|---|---|
| Argenpay SAU | Ave. Eduardo Madero 1182 – CABA | Argentina | Electronic payments services |
| Fintech SGR (Structured entity) | Esmeralda 320 – 6^th^ floor – Office A – CABA | Argentina | Granting of guarantees |
| (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: 28,126). | ||
| --- | --- |
As of March 31, 2022 and December 31, 2021, 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 | 341,200,000 | 100.00 | % | 100.00 | % | |||||||||
| Fintech SGR (Structured entity) | Common | 119,993 | 24.999 | % | 24.999 | % | 75.001 | % | 75.001 | % |
Total assets, liabilities and Shareholders’ equity of the Bank and all its subsidiaries as of March 31, 2022 and December 31, 2021 are as follows:
| Balances as of 03/31/2022 | Banco<br> <br><br> <br>Macro SA | Macro Bank<br><br><br> Limited | Macro<br><br> Securities<br> SA | Macro<br> <br><br> <br>Fiducia SA | Argenpay<br> <br>SAU | Fintech<br> <br>SGR | Eliminations | Consolidated | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Assets | 1,123,770,545 | 9,194,629 | 17,788,022 | 140,042 | 1,162,663 | 1,294,609 | (12,716,600 | ) | 1,140,633,910 | ||||||||
| Liabilities | 841,442,558 | 6,038,000 | 13,364,247 | 2,763 | 640,302 | 1,257,240 | (4,471,339 | ) | 858,273,771 | ||||||||
| Equity attributable to the owners<br> of the Bank | 282,327,987 | 3,156,629 | 4,162,193 | 137,279 | 522,361 | 37,369 | (8,015,831 | ) | 282,327,987 | ||||||||
| Equity attributable to non-controlling<br> interests | 261,582 | (229,430 | ) | 32,152 | |||||||||||||
| Balances as of 12/31/2021 | Banco<br> <br>Macro SA | Macro Bank<br><br><br> Limited | Macro<br><br> Securities<br> SA | Macro<br> <br>Fiducia SA | Argenpay<br> <br>SAU | Fintech<br> <br>SGR | Eliminations | Consolidated | |||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Assets | 1,140,106,124 | 10,617,876 | 17,508,778 | 142,032 | 1,374,868 | 1,619,316 | (13,340,246 | ) | 1,158,028,748 | ||||||||
| Liabilities | 863,200,384 | 7,170,959 | 13,592,916 | 3,335 | 806,313 | 1,565,812 | (5,260,679 | ) | 881,079,040 | ||||||||
| Equity attributable to the owners<br> of the Bank | 276,905,740 | 3,446,917 | 3,715,888 | 138,697 | 568,555 | 53,504 | (7,923,561 | ) | 276,905,740 | ||||||||
| Equity attributable to non-controlling<br> interests | 199,974 | (156,006 | ) | 43,968 |
- 12 -
NOTES TO THE CONDENSED CONSOLIDATED INTERIMFINANCIAL STATEMENTS
AS OF MARCH 31, 2022
(Translation of Financial statements originally issued in Spanish – See Note 44)
(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of March 31, 2022, except as otherwise indicated)
Going concern
The Bank’s management has made an assessment of its ability to continue as a going concern and is satisfied that it has the resources to continue in business for the foreseeable future. Furthermore, management is not aware of any material uncertainties that may cast significant doubt on the Bank’s ability to continue as a going concern. Therefore, these condensed consolidated interim financial statements continue to be prepared on the going concern basis.
Transcription into books
As of the date of issuance of these condensed consolidated interim financial statements, they are in the process of being transcribed into the Bank’s balance book (“Libro Balances”) 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 March 31, 2022, and are rounded up to the nearest amount in thousands of pesos, except as otherwise indicated (see section “Measuring unit” of this note).
Comparative information
The condensed consolidated interim statement of financial position as of March 31, 2022, is presented comparatively with year-end data of the immediately preceding fiscal year, while the statement of income, the statement of other comprehensive income, the statement of changes in shareholders’ equity and the statement of cash flows and cash equivalents for the three-month period ended on that date, are presented comparatively with data as of the same periods of the immediately preceding fiscal year.
The figures related to comparative information have been restated to consider the changes in the general purchasing power of the functional currency and, as a result, are stated in terms of the current measuring unit at the end of the reporting period (see the following section “Measuring unit”).
Measuring unit
These condensed consolidated interim financial statements have been restated for the changes in the general purchasing power of the functional currency (Argentine pesos) of the Bank, as of March 31, 2022, 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 amended, which established the obligation to apply this method, from fiscal years beginning on or after January 1, 2020, and determined as the transition date December 31, 2018.
According to IFRS, the restatement of financial statements is needed when the functional currency is the currency of a hyperinflationary economy. To achieve consistency in identifying an economic environment of that nature, IAS 29 establishes (i) certain nonexclusive qualitative indicators, consisting in analyzing the general population behavior, prices, interest rates and wages with changes in price indexes and the loss of purchasing power, and (ii) as quantitative characteristic, which is the most used condition in practice, to test if a three-year cumulative inflation rate is around 100% or more. Due to miscellaneous macroeconomic factors, the three-year inflation rate exceeded that figure and the Argentine government goals and other available estimates also indicate that this trend will not be reversed in the short term.
The restatement was applied as if the economy had always been hyperinflationary, using a general price index that reflects changes in general purchasing power. To apply the restatement, a series of indexes were used, as prepared and published on a monthly basis by the Argentine Federation of Professional Councils of Economic Sciences (FACPCE, for its acronym in Spanish), which combines the consumer price index (CPI) on a monthly basis published by the Argentine Institute of Statistics and Censuses (INDEC, for its acronym in Spanish) since January 2017 (baseline month: December 2016) with the wholesale prices indexes published by the INDEC until that date. For the months of November and December 2015, for which the INDEC did not publish the wholesale price index (WPI) variation, the CPI variation for CABA was used.
Considering the abovementioned indexes, the inflation rate was 16.07% and 12.95% for the three-month periods ended March 31, 2022 and 2021, respectively, and 50.94% for the fiscal year ended on December 31, 2021.
- 13 -
NOTES TO THE CONDENSED CONSOLIDATED INTERIMFINANCIAL STATEMENTS
AS OF MARCH 31, 2022
(Translation of Financial statements originally issued in Spanish – See Note 44)
(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of March 31, 2022, except as otherwise indicated)
Below is a description of the restatement mechanism provided by IAS 29 “Financial Reporting in Hyperinflationary Economies” and the restatement process for financial statements established by BCRA Communiqué “A” 6849, as supplemented:
Description of the main aspects of the restatement process for statements of financial position:
| (i) | Monetary items (the ones that are already stated in terms of the current measuring unit) are not restated<br>because they are already expressed in terms of the monetary unit current at the end of the reporting period. In an inflationary period,<br>an entity holding monetary assets generates purchasing power loss and holding monetary liabilities generates purchasing power gain, provided<br>that the assets and liabilities are not linked to an adjustment mechanism that offsets to some extent such effects. The net gain or loss<br>on a monetary basis is included in profit or loss for the period. |
|---|---|
| (ii) | Assets and liabilities subject to adjustments based on specific agreements are adjusted in accordance<br>with 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 for 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 for 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 for the period and deferred tax related<br>to the revaluation is recognized in other comprehensive income for 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. |
| --- | --- |
- 14 -
NOTES TO THE CONDENSED CONSOLIDATED INTERIMFINANCIAL STATEMENTS
AS OF MARCH 31, 2022
(Translation of Financial statements originally issued in Spanish – See Note 44)
(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of March 31, 2022, except as otherwise indicated)
Description of the main aspects of the restatement process for the statements of changes in shareholders’ equity:
| (i) | As the transition date (December 31, 2018), the Bank has applied the following procedures: |
|---|---|
| (a) | The components of equity, except the ones mentioned below, were restated from the dates the components<br>were contributed or otherwise arose according to BCRA Communiqué “A” 6849, for each item. |
| --- | --- |
| (b) | Earnings reserved, including the special reserve for the first-time application of IFRS, were stated at<br>nominal value at the transition date (legal amount not restated). |
| --- | --- |
| (c) | The unappropriated retained earnings were determined as a difference between the restated net asset at<br>the transition date and the other components of equity, restated as disclosed in the abovementioned paragraphs. |
| --- | --- |
| (d) | The accumulated balances of other comprehensive income were recalculated in terms of measuring unit current<br>at the transition date. |
| --- | --- |
| (ii) | After the restatement on the abovementioned transition date in (i) above, all equity components are<br>restated by applying a general price index as mentioned before from the beginning of the period and each variation of those components<br>is restated from the contribution date or from the moment it was produced in any other way, and the accumulated OCI balances are redetermined<br>according to the items that give rise to it. |
| --- | --- |
Description of the main aspects of the restatement process for the statement of cash flows:
| (i) | All items are restated in terms of the measuring unit current at the end of the reporting period. |
|---|---|
| (ii) | The monetary gain or losses generated by cash and cash equivalents are separately disclosed in the statement<br>of cash flows after the cash flow from operating investment activities and financing activities, in a separate and independent line, under<br>the description “Monetary effect on cash and cash equivalents”. |
| --- | --- |
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, 2021, already issued.
New standards adopted in thefiscal year
For the fiscal year beginning on January 1, 2022, the following amendment to IFRS are effective and they did not have a material impact on these condensed consolidated interim financial statements:
Amendments to IFRS 3 - Reference to the Conceptual Framework
The amendments are intended to replace a reference to a previous version of the IASB’s Conceptual Framework with a reference to the current version issued in March 2018 without significantly changing its requirements. The amendments add an exception to the recognition principle of IFRS 3 to avoid the issue of potential ‘day 2’ gains or losses arising for liabilities and contingent liabilities that would be within the scope of IAS 37 “Provisions, Contingent Liabilities and Contingent Assets” or IFRIC 21 “Levies”, if incurred separately. The exception requires entities to apply the criteria in IAS 37 or IFRIC 21, respectively, instead of the Conceptual Framework, to determine whether a present obligation exists at the acquisition date. At the same time, the amendments add a new paragraph to IFRS 3 to clarify that contingent assets do not qualify for recognition at the acquisition date.
This amendment did not have a material impact on these condensed consolidated interim financial statements since currently, the Bank has not performed business combination transactions with contingent assets and liabilities.
- 15 -
NOTES TO THE CONDENSED CONSOLIDATED INTERIMFINANCIAL STATEMENTS
AS OF MARCH 31, 2022
(Translation of Financial statements originally issued in Spanish – See Note 44)
(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of March 31, 2022, except as otherwise indicated)
Amendments to IAS 16 - Property, Plant and Equipment (PP&E): proceeds before Intended Use.
The amendment prohibits entities to deduct from the cost of an item of PP&E any proceeds of the sale of items produced while bringing that asset to the location and under the conditions required to be capable of operating in the manner intended by management. Instead, an entity recognizes the proceeds from selling such items, and the costs of producing those items, in profit or loss.
This amendment did not have a material impact on these condensed consolidated interim financial statements as the Bank does not have these type of items.
Amendments to IAS 37 - Onerous Contracts – Costs of Fulfilling a Contract.
The IASB issued amendments to IAS 37 to specify which costs an entity needs to include when assessing whether a contract is onerous or loss-making. The amendments apply a ‘directly related cost approach’. The costs that relate directly to a contract to provide goods or services include both incremental costs and an allocation of costs directly related to contract. The impact of these amendments on entities that previously applied the incremental cost approach is that they will see provisions increase to reflect the inclusion of costs related directly to contract activities, whilst entities that previously recognized contract loss provisions using the guidance from the former standard, IAS 11 Construction Contracts, will be required to exclude the allocation of indirect overheads from their provisions.
This amendment did not have a material impact on these condensed consolidated interim financial statements as the Bank does not have these type of contracts.
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 did not have a material impact on these condensed consolidated interim financial statements.
| • | 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 the 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 did not have a material impact on these condensed consolidated interim financial statements.
New pronouncements
Pursuant to Communiqué “A” 6114 of the BCRA, as new IFRS are approved and existing IFRS are amended or revoked and, once these changes are approved through the notices of approval issued by the FACPCE, the BCRA shall issue a statement on the approval thereof for financial entities. Generally, financial institutions shall not apply any IFRS in advance, except as specifically authorized at the time of the adoption thereof.
The new and amended standards and interpretation that are issued, but not yet effective, up to the date of issuance of these condenses consolidated interim financial statements are disclosed below. The Bank intends to adopt these standards, if applicable, when they become effective.
| a) | 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. |
|---|
- 16 -
NOTES TO THE CONDENSED CONSOLIDATED INTERIMFINANCIAL STATEMENTS
AS OF MARCH 31, 2022
(Translation of Financial statements originally issued in Spanish – See Note 44)
(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of March 31, 2022, except as otherwise indicated)
| b) | 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. |
|---|---|
| c) | 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. |
| --- | --- |
| 4. | CONTINGENT TRANSACTIONS |
| --- | --- |
In order to meet specific financial needs of customers, the Bank’s credit policy also includes, among others, the granting of guarantees, securities, bonds, letters of credit and documentary credits. The Bank is also exposed to overdrafts and unused agreed credits on credit cards of the Bank. Since they imply a contingent obligation for the Bank, they expose the Bank to credit risks other than those recognized in the statement of financial position and, therefore, they are an integral part of the total risk of the Bank.
As of March 31, 2022 and December 31, 2021, the Bank maintains the following maximum exposures to credit risk related to this type of transactions:
| Composition | 03/31/2022 | 12/31/2021 | ||||
|---|---|---|---|---|---|---|
| Undrawn commitments of credit cards and checking accounts | 300,634,489 | 257,577,973 | ||||
| Guarantees granted (1) | 2,631,915 | 2,636,152 | ||||
| Overdraft and unused agreed commitments (1) | 1,452,115 | 1,012,758 | ||||
| Subtotal | 304,718,519 | 261,226,883 | ||||
| Less: Allowance for Expected Credit Losses (ECL) | (441,321 | ) | (395,918 | ) | ||
| Total | 304,277,198 | 260,830,965 | ||||
| (1) | Includes transactions not covered by BCRA debtor classification standard. The Guarantees granted include<br>an amount of 19,958 and 30,285 as of March 31, 2022 and December 31, 2021, respectively. The Overdraft and unused agreed commitments<br>include an amount of 654,172 and 111,670 as of March 31, 2022 and December 31, 2021, 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 43 to the consolidated financial statements as of December 31, 2021, already issued.
- 17 -
NOTES TO THE CONDENSED CONSOLIDATED INTERIMFINANCIAL STATEMENTS
AS OF MARCH 31, 2022
(Translation of Financial statements originally issued in Spanish – See Note 44)
(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of March 31, 2022, except as otherwise indicated)
| 5. | DEBT SECURITIES AT FAIR VALUE THROUGH PROFIT OR LOSS |
|---|
The composition of debt securities at fair value through profit or loss as of March 31, 2022 and December 31, 2021 is as follows:
| Composition | 03/31/2022 | 12/31/2021 | ||
|---|---|---|---|---|
| Government securities | 29,970,559 | 35,553,509 | ||
| Private securities | 2,272,953 | 2,060,717 | ||
| Total | 32,243,512 | 37,614,226 | ||
| 6. | OTHER FINANCIAL ASSETS | |||
| --- | --- |
The composition of the other financial assets as of March 31, 2022 and December 31, 2021 is as follows:
| Composition | 03/31/2022 | 12/31/2021 | ||||
|---|---|---|---|---|---|---|
| Sundry debtors (see note 9) | 13,531,907 | 11,650,401 | ||||
| Receivables from other spot sales pending settlement | 8,313,523 | 7,985,137 | ||||
| Private securities | 2,073,912 | 2,403,281 | ||||
| Receivables from spot sales of government securities pending settlement | 380,273 | 105,447 | ||||
| Receivables from spot sales of foreign currency pending settlement | 85,784 | 17,953,407 | ||||
| Other | 600,107 | 719,756 | ||||
| Subtotal | 24,985,506 | 40,817,429 | ||||
| Less: Allowances for ECL | (40,642 | ) | (30,698 | ) | ||
| Total | 24,944,864 | 40,786,731 |
Disclosures related to allowance for ECL are detailed in item 7.4 of note 7 “Loss allowance for credit losses on credit exposures not measured at fair value through profit or loss”.
| 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, 2021, 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.
- 18 -
NOTES TO THE CONDENSEDCONSOLIDATED INTERIM FINANCIAL STATEMENTS AS OF MARCH 31, 2022
(Translation of Financial statements originally issued in Spanish – See Note 44)
(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of March 31, 2022, except as otherwise indicated)
For the purpose of assessing the Bank’s credit risk exposure and identifying material credit risk concentration, disclosures regarding credit risk of financial assets and items not recognized in the statement of financial position are as follows:
7.1 Loans and other financing measured at amortized cost
According to the nature of the information to be disclosed and the loan characteristics, the Bank groups them as follows:
| Composition | 03/31/2022 | 12/31/2021 | ||||
|---|---|---|---|---|---|---|
| Loans and other financing | 383,773,222 | 420,163,636 | ||||
| Individual assessment | 80,649,549 | 100,091,671 | ||||
| Collective assessment | 303,123,673 | 320,071,965 | ||||
| Less: Allowance for ECL (1) | (9,884,995 | ) | (11,179,097 | ) | ||
| Total | 373,888,227 | 408,984,539 |
(1) As explained in note 3, ECL are not calculated to public sector exposures.
As explained in note 43.1.3 “Additional Forward-looking allowances based on expert credit judgment”, section “Adjustment for uncertainty in external obligation restructuring”, to the consolidated financial statements as of December 31, 2021, already issued, the Bank decided to record an adjustment on a forward-looking basis. Such adjustment amounted to 1,956,544 and 2,305,144 as of March 31, 2022 and December 31, 2021, respectively.
The following table shows the credit quality and the carrying amount of credit risk, based on the Bank’s credit risk rating system, the probability of default (PD) and the year-end stage classification, taking into account what was mentioned in the previous paragraphs. The amounts are presented gross of the impairment allowances.
| 03/31/2022 | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Internal<br> rating grade | Range<br> PD | Stage<br> 1 | Stage<br> 2 | Stage<br> 3 | Total | % | |||||
| Performing | 360,267,646 | 9,044,060 | 369,311,706 | 96.23 | |||||||
| High<br> grade | 0.00%<br> - 3.50% | 308,994,348 | 1,030,963 | 310,025,311 | 80.78 | ||||||
| Standard<br> grade | 3.51%<br> -7.00% | 39,948,062 | 3,020,728 | 42,968,790 | 11.20 | ||||||
| Sub-standard<br> grade | 7.01%<br> - 33.00% | 11,325,236 | 4,992,369 | 16,317,605 | 4.25 | ||||||
| Past<br> due but not impaired | 33.01%<br> - 99.99% | 4,508,644 | 5,035,518 | 9,544,162 | 2.49 | ||||||
| Impaired | 100% | 4,917,354 | 4,917,354 | 1.28 | |||||||
| Total | 364,776,290 | 14,079,578 | 4,917,354 | 383,773,222 | 100 | ||||||
| % | 95.05 | 3.67 | 1.28 | 100 |
- 19 -
NOTES TO THE CONDENSEDCONSOLIDATED INTERIM FINANCIAL STATEMENTS AS OF MARCH 31, 2022
(Translation of Financial statements originally issued in Spanish – See Note 44)
(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of March 31, 2022, except as otherwise indicated)
| 12/31/2021 | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Internal rating grade | Range PD | Stage 1 | Stage 2 | Stage 3 | Total | % | |||||
| Performing | 396,527,536 | 10,036,175 | 406,563,711 | 96.76 | |||||||
| High grade | 0.00%<br> - 3.50% | 333,253,694 | 962,985 | 334,216,679 | 79.54 | ||||||
| Standard grade | 3.51%<br> -7.00% | 49,361,534 | 2,917,172 | 52,278,706 | 12.44 | ||||||
| Sub-standard grade | 7.01%<br> - 33.00% | 13,912,308 | 6,156,018 | 20,068,326 | 4.78 | ||||||
| Past due but not impaired | 33.01%<br> - 99.99% | 3,672,294 | 6,098,808 | 9,771,102 | 2.33 | ||||||
| Impaired | 100% | 3,828,823 | 3,828,823 | 0.91 | |||||||
| Total | 400,199,830 | 16,134,983 | 3,828,823 | 420,163,636 | 100 | ||||||
| % | 95.25 | 3.84 | 0.91 | 100 |
7.1.1 Loans on an individual assessment
The table below shows the credit quality and the debt balance to credit risk of commercial loans by grade on the Bank’s internal credit rating system, PD range and year-end stage classification. The Bank’s internal credit rating systems and the evaluation and measurement approaches are explained in note 43, “Credit risk” section, to the consolidated financial statements as of December 31, 2021, already issued.
| 03/31/2022 | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Internal rating grade | Range PD | Stage 1 | Stage 2 | Stage 3 | Total | % | |||||
| Performing | 74,984,306 | 3,520,239 | 78,504,545 | 97.34 | |||||||
| High grade | 0.00%<br> - 3.50% | 55,353,500 | 445,336 | 55,798,836 | 69.19 | ||||||
| Standard grade | 3.51%<br> -7.00% | 16,197,588 | 1,866,463 | 18,064,051 | 22.39 | ||||||
| Sub-standard grade | 7.01%<br> - 33.00% | 3,433,218 | 1,208,440 | 4,641,658 | 5.76 | ||||||
| Past due but not impaired | 33.01%<br> - 99.99% | ||||||||||
| Impaired | 100% | 2,145,004 | 2,145,004 | 2.66 | |||||||
| Total | 74,984,306 | 3,520,239 | 2,145,004 | 80,649,549 | 100 | ||||||
| % | 92.98 | 4.36 | 2.66 | 100 | |||||||
| 12/31/2021 | |||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Internal rating grade | Range PD | Stage 1 | Stage 2 | Stage 3 | Total | % | |||||
| Performing | 93,708,263 | 4,154,205 | 97,862,468 | 97.77 | |||||||
| High grade | 0.00%<br> - 3.50% | 70,657,514 | 502,191 | 71,159,705 | 71.09 | ||||||
| Standard grade | 3.51%<br> -7.00% | 18,956,784 | 1,458,273 | 20,415,057 | 20.40 | ||||||
| Sub-standard grade | 7.01%<br> - 33.00% | 4,093,965 | 2,193,741 | 6,287,706 | 6.28 | ||||||
| Past due but not impaired | 33.01%<br> - 99.99% | 1,342,910 | 1,342,910 | 1.34 | |||||||
| Impaired | 100% | 886,293 | 886,293 | 0.89 | |||||||
| Total | 93,708,263 | 5,497,115 | 886,293 | 100,091,671 | 100 | ||||||
| % | 93.62 | 5.49 | 0.89 | 100 |
- 20 -
NOTES TO THE CONDENSEDCONSOLIDATED INTERIM FINANCIAL STATEMENTS AS OF MARCH 31, 2022
(Translation of Financial statements originally issued in Spanish – See Note 44)
(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of March 31, 2022, except as otherwise indicated)
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 year-end stage classification. The Bank’s internal credit rating systems and the evaluation and measurement approaches are explained in note 43, “Credit risk” section, to the consolidated financial statements as of December 31, 2021, already issued.
| 03/31/2022 | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Internal rating grade | Range PD | Stage 1 | Stage 2 | Stage 3 | Total | % | |||||
| Performing | 285,283,340 | 5,523,821 | 290,807,161 | 95.94 | |||||||
| High grade | 0.00%<br> - 3.50% | 253,640,848 | 585,627 | 254,226,475 | 83.87 | ||||||
| Standard grade | 3.51%<br> -7.00% | 23,750,474 | 1,154,265 | 24,904,739 | 8.22 | ||||||
| Sub-standard grade | 7.01%<br> - 33.00% | 7,892,018 | 3,783,929 | 11,675,947 | 3.85 | ||||||
| Past due but not impaired | 33.01%<br> - 99.99% | 4,508,644 | 5,035,518 | 9,544,162 | 3.15 | ||||||
| Impaired | 100% | 2,772,350 | 2,772,350 | 0.91 | |||||||
| Total | 289,791,984 | 10,559,339 | 2,772,350 | 303,123,673 | 100 | ||||||
| % | 95.61 | 3.48 | 0.91 | 100 | |||||||
| 12/31/2021 | |||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Internal rating grade | Range PD | Stage 1 | Stage 2 | Stage 3 | Total | % | |||||
| Performing | 302,819,273 | 5,881,970 | 308,701,243 | 96.45 | |||||||
| High grade | 0.00%<br> - 3.50% | 262,596,180 | 460,794 | 263,056,974 | 82.19 | ||||||
| Standard grade | 3.51%<br> -7.00% | 30,404,750 | 1,458,899 | 31,863,649 | 9.95 | ||||||
| Sub-standard grade | 7.01%<br> - 33.00% | 9,818,343 | 3,962,277 | 13,780,620 | 4.31 | ||||||
| Past due but not impaired | 33.01%<br> - 99.99% | 3,672,294 | 4,755,898 | 8,428,192 | 2.63 | ||||||
| Impaired | 100% | 2,942,530 | 2,942,530 | 0.92 | |||||||
| Total | 306,491,567 | 10,637,868 | 2,942,530 | 320,071,965 | 100 | ||||||
| % | 95.76 | 3.32 | 0.92 | 100 |
7.2 Other debt securities at amortized cost
For purchased corporate bonds, 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 type of debt securities that compose each financial trust. That is, the factor to be used will vary in relation to the holding debt securities class (A or B). It is assumed that the EAD is equal to the debt balance.
- 21 -
NOTES TO THE CONDENSEDCONSOLIDATED INTERIM FINANCIAL STATEMENTS AS OF MARCH 31, 2022
(Translation of Financial statements originally issued in Spanish – See Note 44)
(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of March 31, 2022, except as otherwise indicated)
The table below shows the exposures gross of impairment allowances by stage:
| 03/31/2022 | ||||||||
|---|---|---|---|---|---|---|---|---|
| Composition | Stage 1 | Stage 2 | Stage 3 | Total | % | |||
| Corporate bonds | 68,008 | 68,008 | 48.58 | |||||
| Financial trust | 71,973 | 71,973 | 51.42 | |||||
| Total | 139,981 | 139,981 | 100 | |||||
| % | 100 | 100 | ||||||
| 12/31/2021 | ||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Composition | Stage 1 | Stage 2 | Stage 3 | Total | % | |||
| Corporate bonds | 100,385 | 100,385 | 32.67 | |||||
| Financial trust | 206,841 | 206,841 | 67.33 | |||||
| Total | 307,226 | 307,226 | 100 | |||||
| % | 100 | 100 |
The related ECL for corporate bonds as of March 31, 2022 and December 31, 2021 amounted to 611 and 615, respectively. The ECL related to financial trusts as of March 31, 2022 and December 31, 2021 amounted to 5 and 15, respectively.
7.3 Government securities at amortized cost or fair value through OCI
This group includes federal government securities, provincial or BCRA 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 breakdown of these investments and their characteristics is disclosed in note 8.
| 7.4. | Other financial assets |
|---|
The table below shows the exposures gross of impairment allowances by stage:
| 03/31/2022 | ||||||||
|---|---|---|---|---|---|---|---|---|
| Composition | Stage 1 | Stage 2 | Stage 3 | Total | % | |||
| Other financial assets | 22,911,594 | 22,911,594 | 100 | |||||
| Total | 22,911,594 | 22,911,594 | 100 | |||||
| % | 100 | 100 | ||||||
| 12/31/2021 | ||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Composition | Stage 1 | Stage 2 | Stage 3 | Total | % | |||
| Other financial assets | 38,414,148 | 38,414,148 | 100 | |||||
| Total | 38,414,148 | 38,414,148 | 100 | |||||
| % | 100 | 100 |
- 22 -
NOTES TO THE CONDENSEDCONSOLIDATED INTERIM FINANCIAL STATEMENTS AS OF MARCH 31, 2022
(Translation of Financial statements originally issued in Spanish – See Note 44)
(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of March 31, 2022, except as otherwise indicated)
The ECL related to these types of instruments amounted to 40,642 and 30,698 as of March 31, 2022 and December 31, 2021, respectively, including the ECL related to the payments to be collected for the transaction mentioned in note 9.
In exhibit R “Value adjustment for credit losses – Allowance for uncollectibility risk”, the ECL movements by portfolio and products are also disclosed.
| 8. | OTHER DEBT SECURITIES |
|---|
The composition of other debt securities as of March 31, 2022 and December 31, 2021 is as follows:
| Composition | 03/31/2022 | 12/31/2021 | ||
|---|---|---|---|---|
| At fair value through OCI | ||||
| Central Bank internal bills | 200,611,251 | 154,338,735 | ||
| Government securities | 190,530,823 | 144,917,464 | ||
| Government securities – Foreign | 3,329,260 | 4,770,421 | ||
| Total at fair value through OCI | 394,471,334 | 304,026,620 | ||
| At amortized cost | ||||
| Government securities | 28,296,683 | 27,602,665 | ||
| Private securities | 139,365 | 306,596 | ||
| Total at amortized cost | 28,436,048 | 27,909,261 | ||
| Total | 422,907,382 | 331,935,881 | ||
| 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 March 31, 2022 and December 31, 2021 is as follows:
| Composition | 03/31/2022 | 12/31/2021 | ||
|---|---|---|---|---|
| Prisma Medios de Pago SA (1) | 2,078,881 | |||
| Other | 476,438 | 450,853 | ||
| Total | 476,438 | 2,529,734 | ||
| (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.
- 23 -
NOTES TO THE CONDENSEDCONSOLIDATED INTERIM FINANCIAL STATEMENTS AS OF MARCH 31, 2022
(Translation of Financial statements originally issued in Spanish – See Note 44)
(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of March 31, 2022, except as otherwise indicated)
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.
On October 1, 2021, the Bank, together with the other class B Shareholders of Prisma, gave notice with respect to the exercise of the existing put option and therefore started the procedure to sell the remaining 49% of the capital stock of Prisma.
As of December 31, 2021, the holding of the Bank in Prisma (equivalent to 49%), was 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 on March 12 and 22, 2021.
On March 18, 2022, the Bank completed the transfer of all remaining shares held in Prisma in favor of AI ZENITH (Netherlands) BV, representing 4.4941% of Prisma’s capital stock.
The price of such shares is (in thousand) USD 33,018 and shall be paid as follows: (i) 30% in Pesos at UVA plus a nominal annual rate of 15% that shall be paid 50% on March 18, 2027 and the remaining on March 18, 2028, and (ii) 70% in US Dollars at a nominal annual rate of 10% that shall be paid 50% on March 18, 2027 and the remaining on March 18, 2028. The profit generated for the sale of those shares were recording in the statement of income for the period ended March 31, 2022 under “Profit from measurement of financial instruments at fair value through profit or loss”.
On the other hand, the parties agreed that: (i) the 40% of the outstanding balance of the sale of 51% mentioned in the first paragraph of this note was paid on March 30, 2022 and (ii) the remaining balance shall be paid in two installments, on January 31, 2026 and January 31, 2027, respectively.
Finally, sellers retained the usufruct (dividends) of the shares sold to be declared by Prisma for the year ended December 31, 2018, which were collected on April 26, 2019. 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 March 18, 2022 an agreement updated was performed for the 100% of the shares.
| 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.
- 24 -
NOTES TO THE CONDENSEDCONSOLIDATED INTERIM FINANCIAL STATEMENTS AS OF MARCH 31, 2022
(Translation of Financial statements originally issued in Spanish – See Note 44)
(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of March 31, 2022, except as otherwise indicated)
Fair value hierarchy
The Bank uses the following hierarchy to determine and disclose the fair value of financial instruments, according to the valuation technique applied:
| - | Level 1: quoted prices (unadjusted) observable in active markets that the Bank accesses to at the measurement<br>day for identical assets or liabilities. The Bank considers markets as active only if there are sufficient trading activities with respect<br>to the volume and liquidity of the identical assets or liabilities and when there are binding and exercisable price quotes available at<br>each 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<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 March 31, 2022 and December 31, 2021:
| Financial assets and financial liabilities measured at fair value<br> on a recurring basis as of March 31, 2022 | ||||||||
|---|---|---|---|---|---|---|---|---|
| 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 | 32,243,512 | 30,522,798 | 368,480 | 1,352,234 | ||||
| Other financial assets | 2,073,912 | 2,036,930 | 36,982 | |||||
| Equity instruments at fair value through profit or loss | 476,438 | 63,559 | 412,879 | |||||
| At fair value through OCI | ||||||||
| Other debt Securities | 394,471,334 | 223,696,613 | 170,774,721 | |||||
| Financial assets delivered as guarantee | 13,415,360 | 13,415,360 | ||||||
| Total | 442,680,556 | 269,735,260 | 171,143,201 | 1,802,095 | ||||
| Financial liabilities | ||||||||
| At fair value through profit or loss | ||||||||
| Liabilities at fair value through profit or loss | 461,253 | 461,253 | ||||||
| Derivatives financial instruments | 7,453 | 7,453 | ||||||
| Total | 468,706 | 461,253 | 7,453 |
- 25 -
NOTES TO THE CONDENSEDCONSOLIDATED INTERIM FINANCIAL STATEMENTS AS OF MARCH 31, 2022
(Translation of Financial statements originally issued in Spanish – See Note 44)
(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of March 31, 2022, except as otherwise indicated)
| Financial assets and financial liabilities measured at fair value<br><br> on a recurring basis as of December 31, 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 | 37,614,226 | 35,982,562 | 335,452 | 1,296,212 | ||||
| Derivatives financial instruments | 1,504 | 460 | 1,044 | |||||
| Other financial assets | 2,403,281 | 2,367,275 | 36,006 | |||||
| Equity instruments at fair value through profit or loss | 2,529,734 | 78,336 | 2,451,398 | |||||
| At fair value through OCI | ||||||||
| Other debt Securities | 304,026,621 | 168,899,443 | 135,127,178 | |||||
| Total | 346,575,366 | 207,328,076 | 135,463,674 | 3,783,616 | ||||
| Financial liabilities | ||||||||
| At fair value through profit or loss | ||||||||
| Liabilities at fair value through profit or loss | 1,889,304 | 1,889,304 | ||||||
| Derivatives financial instruments | 2,939 | 2,939 | ||||||
| Total | 1,892,243 | 1,889,304 | 2,939 |
Description of the valuation process
The fair value of instruments categorized as Level 1 was assessed by using quoted prices effective at the end of each period or fiscal year, as applicable, in active markets for identical assets or liabilities, if representative. Currently, for most of the government and private securities, there are two principal markets in which the Bank operates: BYMA and MAE. Additionally, in the case of derivatives, both MAE and Mercado a Término de Rosario SA (ROFEX) are deemed active markets.
On the other hand, for certain assets and liabilities that do not have an active market, categorized as Level 2, the Bank used valuation techniques that included the use of market transactions performed under mutual independent terms and conditions, between interested and duly informed parties, provided that they are available as well as references to the current fair value of another instrument being substantially similar, or otherwise the analysis of cash flows discounted at rates built from market information of similar instruments.
In addition, certain assets and liabilities included in this category were valued using price quotes of identical instruments in “less active markets”.
Finally, the Bank has categorized as level 3 those assets and liabilities for which there are no identical or similar transactions in the market. To determine the market value of these instruments the Bank used valuation techniques based on own assumptions and independent appraisers’ valuations. For this approach, the Bank mainly used the cash flow discount model.
As of March 31, 2022 and December 31, 2021, the Bank has neither changed the techniques nor the assumptions used to estimate the fair value of the financial instruments.
- 26 -
NOTES TO THE CONDENSED CONSOLIDATED INTERIMFINANCIAL STATEMENTS
AS OF MARCH 31, 2022
(Translation of Financial statements originally issued in Spanish – See Note 44)
(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of March 31, 2022, except as otherwise indicated)
Below is the reconciliation between the amounts at the beginning and at the end of the period or fiscal year, as applicable, of the financial assets recognized at fair value categorized as level 3:
| As of March 31, 2022 | ||||||||
|---|---|---|---|---|---|---|---|---|
| Reconciliation | Debt instruments | Other financialassets | Equityinstruments<br><br>at fair value<br><br>through profit orloss | |||||
| Amount at the beginning | 1,296,212 | 36,006 | 2,451,398 | |||||
| Transfers to Level 3 | ||||||||
| Transfers from Level 3 | ||||||||
| Profit and loss | 115,042 | 3,351 | 233 | |||||
| Recognition and derecognition | 124,198 | 2,963 | (1,692,071 | ) | ||||
| Monetary effects | (183,218 | ) | (5,338 | ) | (346,681 | ) | ||
| Amount at the end of the period | 1,352,234 | 36,982 | 412,879 | |||||
| As of December 31, 2021 | ||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Reconciliation | Debt instruments | Other financialassets | Equityinstruments****at fair value through profit orloss | |||||
| Amount at the beginning | 663,025 | 45,865 | 2,896,299 | |||||
| Transfers to Level 3 | ||||||||
| Transfers from Level 3 | ||||||||
| Profit and loss | 409,223 | 2,122 | 721,689 | |||||
| Recognition and derecognition | 583,168 | 5,960 | (25,882 | ) | ||||
| Monetary effects | (359,204 | ) | (17,941 | ) | (1,140,708 | ) | ||
| Amount at the end of the fiscal year | 1,296,212 | 36,006 | 2,451,398 |
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 of | Significant | Range of inputs | |||||
|---|---|---|---|---|---|---|---|
| Level 3 Assets | Valuation | unobservable | 03/31/2022 | ||||
| Composition | 03/31/2022 | technique | inputs | Range of inputs | |||
| Low | High | Unit | |||||
| Provisional Debt Securities of Financial Trusts | 558,431 | Income approach (discounted cash flow) | Discount rate in pesos | 37.48 | 53.63 | % | |
| Corporate bonds | 790,568 | Income approach (discounted cash flow) | Discount rate in pesos | 10.21 | 11.05 | % |
- 27 -
NOTES TO THE CONDENSED CONSOLIDATED INTERIMFINANCIAL STATEMENTS
AS OF MARCH 31, 2022
(Translation of Financial statements originally issued in Spanish – See Note 44)
(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of March 31, 2022, except as otherwise indicated)
| Fair value of | Significant | Range of inputs | |||||
|---|---|---|---|---|---|---|---|
| Level 3 Assets | Valuation | unobservable | 12/31/2021 | ||||
| Composition | 12/31/2021 | technique | inputs | Range of inputs | |||
| Low | High | Unit | |||||
| Provisional Debt Securities of Financial Trusts | 373,367 | Income approach (discounted cash flow) | Discount rate in pesos | 43.32 | 46.14 | % | |
| Corporate bonds | 919,416 | Income approach (discounted cash flow) | Discount rate in pesos | 26.19 | 40.99 | % |
The table below describes the effect of changing the significant unobservable inputs to reasonably 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.
| 03/31/2022 | 12/31/2021 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Favorable<br> changes | Unfavorable<br> changes | Favorable<br> changes | Unfavorable<br> changes | |||||||
| Provisional Debt Securities of Financial Trusts | 3,800 | (3,377 | ) | 179 | (176 | ) | ||||
| Corporate bonds | 213 | (212 | ) | 17,743 | (16,356 | ) |
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 March 31, 2022 and December 31, 2021, the Bank has not recognized any transfers between levels 1, 2 and 3.
Financial assets and liabilities not measured at fair value
Next follows a description of the main methods and assumptions used to determine the fair values of financial instruments not recognized at their fair value in these condensed consolidated interim financial statements:
| - | Instruments with fair value similar to 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 renowned<br>pricing providers, the fair value was determined based on such prices. |
| --- | --- |
- 28 -
NOTES TO THE CONDENSED CONSOLIDATED INTERIMFINANCIAL STATEMENTS
AS OF MARCH 31, 2022
(Translation of Financial statements originally issued in Spanish – See Note 44)
(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of March 31, 2022, except as otherwise indicated)
The following table shows a comparison between the fair value and the carrying amount of financial instruments not measured at fair value as of March 31, 2022 and December 31, 2021:
| 03/31/2022 | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Composition | Carrying<br><br>amount | Level 1 | Level 2 | Level 3 | Fair value | |||||
| Financial assets | ||||||||||
| Cash and deposits in banks | 175,530,662 | 175,530,662 | 175,530,662 | |||||||
| Other financial assets | 22,870,952 | 22,870,952 | 22,870,952 | |||||||
| Loans and other financing | 373,888,227 | 342,528,904 | 342,528,904 | |||||||
| Other debt securities | 28,436,048 | 502,068 | 27,924,195 | 31,155 | 28,457,418 | |||||
| Financial assets delivered as guarantee | 18,632,543 | 18,632,543 | 18,632,543 | |||||||
| Total | 619,358,432 | 217,536,225 | 27,924,195 | 342,560,059 | 588,020,479 | |||||
| Financial liabilities | ||||||||||
| Deposits | 677,544,730 | 342,978,570 | 333,934,794 | 676,913,364 | ||||||
| Repo transactions | 11,853,813 | 11,853,813 | 11,853,813 | |||||||
| Other financial liabilities | 59,738,262 | 58,181,390 | 1,483,214 | 59,664,604 | ||||||
| Financing received from the BCRA and other financial institutions | 2,008,345 | 160,298 | 1,847,485 | 2,007,783 | ||||||
| Issued corporate bonds | 3,096,173 | 2,875,062 | 2,875,062 | |||||||
| Subordinated corporate bonds | 46,028,349 | 36,743,749 | 36,743,749 | |||||||
| Total | 800,269,672 | 413,174,071 | 42,949,510 | 333,934,794 | 790,058,375 | |||||
| 12/31/2021 | ||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Composition | Carrying<br><br>amount | Level 1 | Level 2 | Level 3 | Fair value | |||||
| Financial assets | ||||||||||
| Cash and deposits in banks | 200,025,884 | 200,025,884 | 200,025,884 | |||||||
| Repo transactions | 36,452,615 | 36,452,615 | 36,452,615 | |||||||
| Other financial assets | 38,383,450 | 38,383,450 | 38,383,450 | |||||||
| Loans and other financing | 408,984,539 | 379,995,367 | 379,995,367 | |||||||
| Other debt securities | 27,909,260 | 26,546,116 | 754,293 | 181,235 | 27,481,644 | |||||
| Financial assets delivered as guarantee | 20,851,057 | 20,851,057 | 20,851,057 | |||||||
| Total | 732,606,805 | 322,259,122 | 754,293 | 380,176,602 | 703,190,017 | |||||
| Financial liabilities | ||||||||||
| Deposits | 683,477,170 | 387,337,001 | 295,754,948 | 683,091,949 | ||||||
| Other financial liabilities | 78,852,081 | 77,173,869 | 1,665,381 | 78,839,250 | ||||||
| Financing received from the BCRA and other financial institutions | 508,067 | 459,880 | 44,542 | 504,422 | ||||||
| Issued corporate bonds | 3,471,423 | 3,055,687 | 3,055,687 | |||||||
| Subordinated corporate bonds | 48,719,287 | 39,996,562 | 39,996,562 | |||||||
| Total | 815,028,028 | 464,970,750 | 44,762,172 | 295,754,948 | 805,487,870 |
- 29 -
NOTES TO THE CONDENSED CONSOLIDATED INTERIMFINANCIAL STATEMENTS
AS OF MARCH 31, 2022
(Translation of Financial statements originally issued in Spanish – See Note 44)
(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of March 31, 2022, except as otherwise indicated)
| 11. | BUSINESS COMBINATIONS |
|---|
On October 1, 2021, the Bank exercised a call option to reach 24.99% of the equity interest in Fintech SGR, being a structured entity in which the Bank has control (see also note 1).
Assets acquired and liabilities assumed
The fair value of the identifiable assets and liabilities of Fintech SGR and the risk fund (“Fondo de Riesgo”), as of the date of acquisition, were as follows:
| Fair value recognized on acquisition | ||||
|---|---|---|---|---|
| Composition | SGR | Risk fund | ||
| Assets | 68,899 | 997,056 | ||
| Cash and deposits in Banks | 290 | 107,689 | ||
| Debt Securities at fair value through profit or loss | 722,155 | |||
| Other financial assets | 45,930 | 166,746 | ||
| Property, plant and equipment | 660 | |||
| Deferred tax assets | 4,602 | |||
| Other non-financial assets | 17,417 | 466 | ||
| Liabilities | 58,261 | 997,056 | ||
| Other financial liabilities | 58,261 | 988,241 | ||
| Other non-financial liabilities | 8,815 | |||
| Net assets acquired at fair value | 10,638 |
The goodwill generated by the acquisition of Fintech SGR amounted to 26,492.
The total consideration transferred amounted to 33,488 (not restated) and it was performed through an irrevocable capital contribution made by the Bank in order to increase the capital stock of Fintech SGR, which was approved by the Fintech SGR’s Ordinary and Special Shareholders’ Meeting involving class “A” and class “B”, held on October 18, 2021.
| 12. | INVESTMENT IN ASSOCIATES AND JOINT ARRANGEMENTS |
|---|---|
| 12.1 | Associates |
| --- | --- |
| a) | Macro Warrants SA |
| --- | --- |
| The Bank holds an investment in the associate Macro Warrants<br>SA. The existence of significant influence is evidenced by the representation the Bank has in the Board of Directors of the associate.<br>In order to measure this investment, the Bank used accounting information of Macro Warrants SA as of December 31, 2021. Additionally,<br>the Bank has considered, when applicable, the material transactions or events occurring between January 1, 2022 and March 31,<br>2022. | |
| --- |
- 30 -
NOTES TO THE CONDENSED CONSOLIDATED INTERIMFINANCIAL STATEMENTS
AS OF MARCH 31, 2022
(Translation of Financial statements originally issued in Spanish – See Note 44)
(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of March 31, 2022, except as otherwise indicated)
The following table presents the summarized financial information on the Bank’s investment in the associate:
| Summarized statement of financial position | 03/31/2022 | 12/31/2021 | ||||
|---|---|---|---|---|---|---|
| Total assets | 78,095 | 103,184 | ||||
| Total liabilities | 11,180 | 14,634 | ||||
| Shareholders’ equity | 66,915 | 88,550 | ||||
| Proportional Bank’s interest | 5 | % | 5 | % | ||
| Investment carrying amount | 3,346 | 4,428 |
As of March 31, 2022 and 2021, the investment carrying amount in the net income for the periods amounted to (1,082) and (228), respectively.
| b) | Play Digital SA |
|---|
As explained 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. In order to measure this investment, the Bank used accounting information of Play Digital SA as of December 31, 2021. Additionally, the Bank has considered, when applicable, the material transactions or events occurring between January 1, 2022 and March 31, 2022.
The following table presents the summarized financial information on the Bank’s interest in the associate:
| Summarized statement of financial position | 03/31/2022 | 12/31/2021 | ||||
|---|---|---|---|---|---|---|
| Total assets | 1,633,181 | 2,163,308 | ||||
| Total liabilities | 336,567 | 182,691 | ||||
| Shareholders’ equity | 1,296,614 | 1,980,617 | ||||
| Proportional Bank’s interest | 10.0197 | % | 10.0197 | % | ||
| Investment carrying amount | 129,917 | 198,452 | ||||
| Irrevocable capital contribution made on January 2022 (see note 1) | 130,758 | |||||
| 260,675 | 198,452 |
As of March 31, 2022 and 2021, the investment carrying amount in the net income for the periods amounted to (83,885) and (2,322) respectively.
| 12.2 | Joint ventures |
|---|
The Bank participates in the following joint ventures:
| a) | Banco Macro SA – Wordline Argentina SA Unión transitoria |
|---|
On April 7, 1998, the Bank executed an agreement with Siemens Itron Services SA to organize an joint venture (UTE, for its acronym in Spanish) controlled on a joint basis through a 50% interest, the purpose of which is to facilitate a data processing center for the tax administration, to modernize the systems and tax collection processes of the Province of Salta and manage and recover municipal taxes and fees.
- 31 -
NOTES TO THE CONDENSED CONSOLIDATED INTERIMFINANCIAL STATEMENTS
AS OF MARCH 31, 2022
(Translation of Financial statements originally issued in Spanish – See Note 44)
(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of March 31, 2022, except as otherwise indicated)
The following table presents the summarized financial information on the Bank’s investment in the UTE:
| Summarized statement of financial position | 03/31/2022 | 12/31/2021 | ||||
|---|---|---|---|---|---|---|
| Total assets | 849,041 | 823,064 | ||||
| Total liabilities | 165,682 | 191,282 | ||||
| Shareholders’ equity | 683,359 | 631,782 | ||||
| Proportional Bank’s interest | 50 | % | 50 | % | ||
| Investment carrying amount | 341,680 | 315,891 |
As of March 31, 2022 and 2021, the investment carrying amount in the net income for the periods amounted to 51,800 and 38,283, respectively.
| b) | Finova SA |
|---|
As explained in note 1, on October 1, 2021, the Bank acquired the 50% of Finova SA. The Bank has common control over this company, as the decisions about the relevant activities require unanimous consent.
The following table presents the summarized financial information on the Bank in this company, which as explained in note 3, section 3.5 “Investment in associates and joint arrangements” to the consolidated financial statements as of December 31, 2021, already issued, is measured at equity method plus goodwill:
| Summarized statement of financial position | 03/31/2022 | 12/31/2021 | ||||
|---|---|---|---|---|---|---|
| Total assets | 38,887 | 45,134 | ||||
| Total liabilities | 4,090 | 4,747 | ||||
| Shareholders’ equity | 34,797 | 40,387 | ||||
| Proportional Bank’s interest | 50 | % | 50 | % | ||
| Equity interest | 17,399 | 20,194 | ||||
| Goodwill | 29,201 | 29,201 | ||||
| Investment carrying amount | 46,600 | 49,395 |
As of March 31, 2022, the investment carrying amount in the net income for the period amounted to (2,796).
| 13. | OTHER NON-FINANCIAL ASSETS |
|---|
The composition of the other non-financial assets as of March 31, 2022 and December 31, 2021 is as follows:
| Composition | 03/31/2022 | 12/31/2021 | ||
|---|---|---|---|---|
| Advanced prepayments | 1,610,374 | 963,572 | ||
| Investment property (see Exhibit F) | 1,048,330 | 1,009,468 | ||
| Tax advances | 457,624 | 509,871 | ||
| Other | 209,538 | 223,396 | ||
| Total | 3,325,866 | 2,706,307 |
- 32 -
NOTES TO THE CONDENSED CONSOLIDATED INTERIMFINANCIAL STATEMENTS
AS OF MARCH 31, 2022
(Translation of Financial statements originally issued in Spanish – See Note 44)
(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of March 31, 2022, except as otherwise indicated)
| 14. | RELATED PARTIES |
|---|
A related party is a person or entity that is related to the Bank:
| - | has control or joint control of the Bank; |
|---|---|
| - | has significant influence over the Bank; |
| --- | --- |
| - | is a member of the key management personnel 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.
As of March 31, 2022 and December 31, 2021, amounts balances related to transactions generated with related parties are as follows:
| As of March 31, 2022 | ||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Main subsidiaries (1) | ||||||||||||||||||
| Macro Bank Limited | Macro Securities SA | Macro Fondos SGFCISA | Argenpay SAU | Fintech SGR | Associates | Key management personnel (2) | Other related parties | Total | ||||||||||
| Assets | ||||||||||||||||||
| Cash and deposit in banks | 889 | 889 | ||||||||||||||||
| Other financial assets | 17,496 | 126,691 | 1,177 | 145,364 | ||||||||||||||
| Loans and other financing (3) | ||||||||||||||||||
| Documents | 30,778 | 30,778 | ||||||||||||||||
| Overdraft | 40,237 | 318,869 | 359,106 | |||||||||||||||
| Credit cards | 96,169 | 79,074 | 175,243 | |||||||||||||||
| Lease | 34,093 | 34,093 | ||||||||||||||||
| Personal loans | 1,334 | 1,334 | ||||||||||||||||
| Mortgage loans | 265,170 | 265,170 | ||||||||||||||||
| Other loans | 1,411,226 | 81,589 | 1,284,433 | 2,777,248 | ||||||||||||||
| Other receivables from financial intermediation | 699,169 | 699,169 | ||||||||||||||||
| Guarantee granted | 1,526,775 | 1,526,775 | ||||||||||||||||
| Other financial assets | 12 | 12 | ||||||||||||||||
| Total assets | 889 | 1,428,722 | 699,169 | 611,202 | 3,275,199 | 6,015,181 | ||||||||||||
| Liabilities | ||||||||||||||||||
| Deposits | 2 | 1,733,650 | 180,067 | 45,192 | 14 | 49,342 | 2,763,335 | 1,445,090 | 6,216,692 | |||||||||
| Financial liabilities at fair value through profit or loss | 113,627 | 113,627 | ||||||||||||||||
| Other financial liabilities | 35,756 | 76,842 | 112,598 | |||||||||||||||
| Subordinated corporate bonds | 57,607 | 57,607 | ||||||||||||||||
| Other non-financial liabilities | 14,615 | 14,615 | ||||||||||||||||
| Total liabilities | 2 | 1,733,650 | 180,067 | 45,192 | 57,621 | 49,342 | 2,799,091 | 1,650,174 | 6,515,139 | |||||||||
| (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 March 31, 2022 for Macro Securities<br>SA, Fintech SGR, Key management personnel and other related parties amounted to 1,427,836, 787,386, 680,678 and 5,339,487, respectively. |
- 33 -
NOTES TO THE CONDENSED CONSOLIDATED INTERIMFINANCIAL STATEMENTS
AS OF MARCH 31, 2022
(Translation of Financial statements originally issued in Spanish – See Note 44)
(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of March 31, 2022, except as otherwise indicated)
| As of December 31, 2021 | ||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Main subsidiaries (1) | ||||||||||||||||||
| Macro Bank<br><br> Limited | Macro<br><br>Securities<br><br> SA | Macro<br><br>Fondos<br><br>SGFCISA | Argenpay<br><br>SAU | Fintech<br><br>SGR | Associates | Key<br><br>management<br><br> personnel (2) | Other<br><br>related<br><br>parties | Total | ||||||||||
| Assets | ||||||||||||||||||
| Cash and deposit in banks | 955 | 955 | ||||||||||||||||
| Other financial assets | 172,870 | 167,875 | 340,745 | |||||||||||||||
| Loans and other financing (3) | ||||||||||||||||||
| Documents | 33,127 | 33,127 | ||||||||||||||||
| Overdraft | 93,324 | 293,583 | 386,907 | |||||||||||||||
| Credit cards | 83,375 | 62,647 | 146,022 | |||||||||||||||
| Lease | 33,342 | 33,342 | ||||||||||||||||
| Personal loans | 1,654 | 1,654 | ||||||||||||||||
| Mortgage loans | 297,834 | 297,834 | ||||||||||||||||
| Other loans | 1,607,473 | 88,610 | 1,836,256 | 3,532,339 | ||||||||||||||
| Other receivables from financial intermediation | 880,185 | 8,009 | 888,194 | |||||||||||||||
| Guarantee granted | 1,187,807 | 1,187,807 | ||||||||||||||||
| Other non-financial assets | 28 | 28 | ||||||||||||||||
| Total assets | 955 | 1,607,473 | 880,185 | 737,695 | 3,622,646 | 6,848,954 | ||||||||||||
| Liabilities | ||||||||||||||||||
| Deposits | 5 | 1,845,949 | 190,029 | 79,620 | 36 | 61,330 | 4,288,474 | 1,989,793 | 8,455,236 | |||||||||
| Financial liabilities at fair value through profit or loss | 1,888,815 | 1,888,815 | ||||||||||||||||
| Other financial liabilities | 56,616 | 289,297 | 345,913 | |||||||||||||||
| Subordinated corporate bonds | 48,768 | 48,768 | ||||||||||||||||
| Other non-financial liabilities | 17,854 | 17,854 | ||||||||||||||||
| Total liabilities | 5 | 1,845,949 | 190,029 | 79,620 | 48,804 | 61,330 | 4,345,090 | 4,185,759 | 10,756,586 | |||||||||
| (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, 2021 for Macro Securities<br>SA, Fintech SGR, Key management personnel and other related parties amounted to 1,620,992, 880,185, 831,600 and 7,097,978, respectively. |
- 34 -
NOTES TO THE CONDENSED CONSOLIDATED INTERIMFINANCIAL STATEMENTS
AS OF MARCH 31, 2022
(Translation of Financial statements originally issued in Spanish – See Note 44)
(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of March 31, 2022, except as otherwise indicated)
Profit or loss related to transactions generated during the three-month periods ended March 31, 2022 and 2021 with related parties are as follows:
| As of March 31, 2022 | ||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Main subsidiaries (1) | Key | |||||||||||||||||||||
| **** | Macro Bank Limited | Macro Securities SA | Macro Fondos SGFCISA | Argenpay SAU | Fintech SGR | Associates | **** | management personnel (2) | **** | Other related parties | **** | Total | **** | |||||||||
| Income / (loss) | ||||||||||||||||||||||
| Interest income | 906 | 52,415 | 236,591 | 289,912 | ||||||||||||||||||
| Interest expense | (2,545 | ) | (15,047 | ) | (1,185 | ) | (18,777 | ) | ||||||||||||||
| Commissions income | 383 | 25 | 149 | 35 | 4 | 12,195 | 12,791 | |||||||||||||||
| Commissions expense | (5 | ) | (680 | ) | (685 | ) | ||||||||||||||||
| Other operating income | 1 | 1,162 | 15 | 8 | 1,186 | |||||||||||||||||
| Administrative expense | (68,821 | ) | (68,821 | ) | ||||||||||||||||||
| Other operating expense | (13,207 | ) | (13,207 | ) | ||||||||||||||||||
| Total<br> Income / (loss) | 1 | 2,451 | 25 | 15 | 149 | (2,510 | ) | 37,367 | 164,901 | 202,399 | ||||||||||||
| (1) | These transactions<br> are eliminated during the consolidation process. | |||||||||||||||||||||
| --- | --- | |||||||||||||||||||||
| (2) | Includes<br> close family members of the key management personnel. | |||||||||||||||||||||
| --- | --- | |||||||||||||||||||||
| As<br> of March 31, 2021 | ||||||||||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | ||
| Main<br> subsidiaries (1) | Key | |||||||||||||||||||||
| Macro<br><br> Bank<br> Limited | Macro<br><br> Securities <br> SA | Macro<br><br> Fondos <br> SGFCISA | Argenpay<br><br> SAU | Associates | management<br> <br> personnel <br> (2) | Other<br><br> related <br> parties | Total | |||||||||||||||
| Income / (loss) | ||||||||||||||||||||||
| Interest income | 1,196 | 34,755 | 536,132 | 572,083 | ||||||||||||||||||
| Interest expense | (3,049 | ) | (5,351 | ) | (19,402 | ) | (240,381 | ) | (268,183 | ) | ||||||||||||
| Commissions income | 6,169 | 43 | 71 | 5 | 5,972 | 12,260 | ||||||||||||||||
| Commissions expense | (17 | ) | (203 | ) | (220 | ) | ||||||||||||||||
| Other operating income | 2 | 4,669 | 9 | 4,680 | ||||||||||||||||||
| Administrative expense | (58,512 | ) | (58,512 | ) | ||||||||||||||||||
| Other operating expense | (25,455 | ) | (25,455 | ) | ||||||||||||||||||
| Total<br> Income / (loss) | 2 | 8,985 | 43 | (5,280 | ) | 15,341 | 217,562 | 236,653 | ||||||||||||||
| (1) | These transactions<br> are eliminated during the consolidation process. | |||||||||||||||||||||
| --- | --- | |||||||||||||||||||||
| (2) | Includes<br> 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 March 31, 2022 and 2021, totaled 124,133 and 179,263, respectively.
In addition, fees received by the Directors as of March 31, 2022 and 2021 amounted to 491,926 and 890,994, respectively.
- 35 -
NOTES TO THE CONDENSED CONSOLIDATED INTERIMFINANCIAL STATEMENTS
AS OF MARCH 31, 2022
(Translation of Financial statements originally issued in Spanish – See Note 44)
(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of March 31, 2022, except as otherwise indicated)
Additionally, the composition of the Board of Directors and key management personnel of the Bank and its subsidiaries is as follows:
| Composition | 03/31/2022 | 12/31/2021 | ||
|---|---|---|---|---|
| Board of Directors | 21 | 21 | ||
| Senior managers of the key management personnel | 12 | 12 | ||
| Total | 33 | 33 | ||
| 15. | OTHER FINANCIAL LIABILITIES | |||
| --- | --- |
The composition of the other financial liabilities as of March 31, 2022 and December 31, 2021 is as follows:
| Composition | 03/31/2022 | 12/31/2021 | ||
|---|---|---|---|---|
| Credit and debit card settlement - due to merchants | 35,038,446 | 38,356,250 | ||
| Amounts payable for other spot purchases pending settlement | 8,933,295 | 8,208,821 | ||
| Amounts payable for spot purchases of government securities pending settlement | 4,047,130 | 1,883,579 | ||
| Payment orders pending to foreign exchange settlement | 3,191,140 | 3,452,384 | ||
| Collections and other transactions on account and behalf of others | 2,253,849 | 2,822,539 | ||
| Finance leases liabilities | 1,468,542 | 1,648,388 | ||
| Amounts payable for spot purchases of foreign currency pending settlement | 193,472 | 18,004,499 | ||
| Other | 4,612,388 | 4,475,621 | ||
| Total | 59,738,262 | 78,852,081 | ||
| 16. | PROVISIONS | |||
| --- | --- |
This item includes the amounts estimated to face a liability of probable occurrence, which if occurring, would originate a loss for the Bank.
Exhibit J “Changes in Provisions” presents the changes in provisions as of March 31, 2022 and December 31, 2021.
The expected terms to settle these obligations are as follows:
| 03/31/2022 | ||||||||
|---|---|---|---|---|---|---|---|---|
| Composition | Within 12<br> months | Over 12<br> months | 03/31/2022 | 12/31/2021 | ||||
| For administrative, disciplinary and criminal penalties | 500 | 500 | 580 | |||||
| Letters of credits, guarantees and other commitments (1) | 441,321 | 441,321 | 395,918 | |||||
| Commercial claims in progress (2) | 32,022 | 322,394 | 354,416 | 368,564 | ||||
| Labor lawsuits | 135,126 | 111,597 | 246,723 | 250,007 | ||||
| Pension funds - reimbursement | 39,416 | 98,258 | 137,674 | 123,336 | ||||
| Other | 16,393 | 805,000 | 821,393 | 766,966 | ||||
| Total | 664,278 | 1,337,749 | 2,002,027 | 1,905,371 | ||||
| (1) | These amounts correspond to the ECL calculated for contingent transactions, which are mentioned in note<br>4. | |||||||
| --- | --- | |||||||
| (2) | See also note 38.2. | |||||||
| --- | --- |
- 36 -
NOTES TO THE CONDENSED CONSOLIDATED INTERIMFINANCIAL STATEMENTS
AS OF MARCH 31, 2022
(Translation of Financial statements originally issued in Spanish – See Note 44)
(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of March 31, 2022, except as otherwise indicated)
In the opinion of the Bank’s Management and its legal counsel, there are no other significant effects other than those disclosed in these condensed consolidated interim financial statements, the amounts and settlement terms of which have been recognized based on the current value of such estimates, considering the probable settlement date thereof.
| 17. | OTHER NON-FINANCIAL LIABILITIES |
|---|
The composition of other non-financial liabilities as of March 31, 2022 and December 31, 2021 is as follows:
| Composition | 03/31/2022 | 12/31/2021 | ||
|---|---|---|---|---|
| Dividends payables (see note 29) | 26,580,415 | 30,851,805 | ||
| Withholdings | 7,916,596 | 8,152,274 | ||
| Salaries, bonuses and payroll taxes payables | 5,583,188 | 7,641,136 | ||
| Taxes payables | 3,730,184 | 3,731,889 | ||
| Miscellaneous payables | 1,618,956 | 2,204,738 | ||
| Retirement pension payment orders pending settlement | 571,968 | 490,998 | ||
| Fees payables | 126,364 | 361,507 | ||
| Other | 1,291,711 | 1,804,559 | ||
| Total | 47,419,382 | 55,238,906 | ||
| 18. | ANALYSIS OF FINANCIAL ASSETS TO BE RECOVERED AND FINANCIAL LIABILITIES TO BE SETTLED | |||
| --- | --- |
The following tables show the analysis of financial assets and liabilities the Bank expects to recover and settle as of March 31, 2022 and December 31, 2021:
| 03/31/2022 | Without due<br><br> date | Total up to 12<br><br> months | Total over 12<br><br> months | |||
|---|---|---|---|---|---|---|
| Assets | ||||||
| Cash and deposits in banks | 175,530,662 | |||||
| Debt securities at fair value through profit or loss | 24,697,254 | 7,546,258 | ||||
| Other financial assets | 4,835,910 | 12,975,023 | 7,133,931 | |||
| Loans and other financing (1) | 267,418 | 245,912,320 | 127,708,489 | |||
| Other debt securities | 381,237,162 | 41,670,220 | ||||
| Financial assets delivered as guarantee | 18,632,543 | 13,415,360 | ||||
| Equity instruments at fair value through profit or loss | 476,438 | |||||
| Total assets | 199,742,971 | 678,237,119 | 184,058,898 |
- 37 -
NOTES TO THE CONDENSED CONSOLIDATED INTERIMFINANCIAL STATEMENTS
AS OF MARCH 31, 2022
(Translation of Financial statements originally issued in Spanish – See Note 44)
(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of March 31, 2022, except as otherwise indicated)
| 03/31/2022 | Without due <br><br>date | Total up to 12<br><br> months | Total over 12<br><br> months | |||
|---|---|---|---|---|---|---|
| Liabilities | ||||||
| Deposits | 337,447,711 | 340,065,144 | 31,875 | |||
| Financial liabilities at fair value through profit or loss | 461,253 | |||||
| Derivative financial instruments | 7,453 | |||||
| Repo transactions | 11,853,813 | |||||
| Other financial liabilities | 58,525,684 | 1,212,578 | ||||
| Financing received from the BCRA and other financial institutions | 2,006,304 | 2,041 | ||||
| Issued corporate bonds | 3,096,173 | |||||
| Subordinated corporate bonds | 1,692,518 | 44,335,831 | ||||
| Total liabilities | 337,447,711 | 417,708,342 | 45,582,325 | |||
| (1) | The amounts included in “without due date” are related to the non-performing portfolio. | |||||
| --- | --- | |||||
| 12/31/2021 | Without due<br> date | Total up to 12<br> months | Total over 12<br> months | |||
| --- | --- | --- | --- | --- | --- | --- |
| Assets | ||||||
| Cash and deposits in banks | 200,025,884 | |||||
| Debt securities at fair value through profit or loss | 25,170,203 | 12,444,023 | ||||
| Derivative financial instruments | 1,504 | |||||
| Repo transactions | 36,452,615 | |||||
| Other financial assets | 4,423,749 | 30,711,480 | 5,651,502 | |||
| Loans and other financing (1) | 190,587 | 268,646,744 | 140,147,208 | |||
| Other debt securities | 277,473,613 | 54,462,268 | ||||
| Financial assets delivered as guarantee | 20,851,057 | |||||
| Equity instruments at fair value through profit or loss | 2,529,734 | |||||
| Total assets | 228,021,011 | 638,456,159 | 212,705,001 | |||
| Liabilities | ||||||
| --- | --- | --- | --- | |||
| Deposits | 380,364,128 | 303,076,563 | 36,479 | |||
| Liabilities at fair value through profit or loss | 1,889,304 | |||||
| Derivative financial instruments | 2,939 | |||||
| Other financial liabilities | 77,412,658 | 1,439,423 | ||||
| Financing received from the BCRA and other financial institutions | 502,145 | 5,922 | ||||
| Issued corporate bonds | 3,471,423 | |||||
| Subordinated corporate bonds | 1,062,350 | 47,656,937 | ||||
| Total liabilities | 380,364,128 | 387,417,382 | 49,138,761 | |||
| (1) | The amounts included in “without due date” are related to the non-performing portfolio. | |||||
| --- | --- |
- 38 -
NOTES TO THE CONDENSED CONSOLIDATED INTERIMFINANCIAL STATEMENTS
AS OF MARCH 31, 2022
(Translation of Financial statements originally issued in Spanish – See Note 44)
(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of March 31, 2022, except as otherwise indicated)
| 19. | 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.
| 20. | INCOME TAX |
|---|---|
| a) | Inflation adjustment on income tax |
| --- | --- |
Tax Reform Law 27430, amended by Laws 27468 and 27541, established the following, regarding inflation adjustment on income tax for the fiscal years beginning on January 1, 2018.
| i) | Such adjustment will be applicable in the fiscal year in which the variation of the IPC is higher than<br>100% for the thirty-six months before the end of the tax period. |
|---|---|
| ii) | Regarding the first, second and third fiscal year after its effective date, this procedure will be applicable<br>if the variation of the abovementioned index, calculated from the beginning until the end of each of those fiscal years exceeds 55%, 30%<br>and 15% for the first, second and third fiscal years 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 is determined. |
| --- | --- |
As of March 31, 2022 and December 31, 2021, all the conditions established by the income tax Law to practice the inflation adjustment are met and the current and deferred income tax was recognized, including the effects of the application of the inflation adjustment on income taxes established by Law (see section “Tax inflation adjustment – Fiscal years 2019 and 2020” of this note).
| b) | Income tax rate |
|---|
Law No. 27541 suspended, up to fiscal years beginning on or after January 1, 2021, the income tax rate reduction that had established Law No. 27430, setting up for the suspended period a rate of 30%. On June 16, 2021, through Decree No. 387/2021, Law No. 27630 was issued. This law established for fiscal years beginning on or after January 1, 2021, a progressive tax rates scheme of 25%, 30% and 35% which will be applied, on a progressively basis, to the taxable accumulated net profit at the end of each fiscal year.
| c) | The main items of income tax expense in the condensed consolidated interim financial statements are as<br>follows: | ||||
|---|---|---|---|---|---|
| Description | 03/31/2022 | 03/31/2021 | |||
| --- | --- | --- | --- | --- | --- |
| Current income tax expense | 526,861 | 1,711,191 | |||
| Loss for deferred income taxes | 966,448 | 1,557,565 | |||
| Monetary effects | 82,499 | 325,341 | |||
| Income tax loss recorded in the statement of income | 1,575,808 | 3,594,097 | |||
| Income tax (income) / loss recorded in other comprehensive income | (167,444 | ) | 420,664 | ||
| Total | 1,408,364 | 4,014,761 |
- 39 -
NOTES TO THE CONDENSED CONSOLIDATED INTERIMFINANCIAL STATEMENTS
AS OF MARCH 31, 2022
(Translation of Financial statements originally issued in Spanish – See Note 44)
(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of March 31, 2022, except as otherwise indicated)
Tax inflation adjustment – Fiscal years 2019 and 2020
As decided by the Board of Directors in the meeting held on May 11, 2020, considering certain case law on the matter assessed by its legal counsel and tax advisors, on May 26 of that year, the Bank filed with the Administración Federal de Ingresos Públicos (AFIP, for its acronym in Spanish) its annual income tax return considering the total effect of the inflation adjustment on income tax (see section a) iv) of this note). As a result, the current income tax determined by Banco Macro SA for fiscal year 2019 amounted to 7,002,124 (not restated). The same criterion was applied to determine the annual income tax report for 2020, which generated accrued income tax for Banco Macro SA for such fiscal year that amounted to 9,933,210 (not restated).
In addition, on July 23, 2021, the Bank filed a reimbursement action with the AFIP requesting that 254,305 (not restated) paid as income tax for the 2020 tax period be reimbursed.
As to the tax periods mentioned in previous paragraphs, on November 1, 2021, the AFIP notified the beginning of an income tax audit.
Along with the filings mentioned in the first paragraph of this section, on December 28, 2021, the Bank filed petitions for declaratory judgment with the Federal Administrative Contentious Court for the periods under analysis. The file 22274/2021, for the fiscal year 2019, is in process in Court No. 12 and the file 22278/2021, for the fiscal year 2020, is in process in Court No. 1.
Reimbursement actions – Fiscal years 2013 to 2017 and 2018
On October 24, 2019, Banco Macro SA filed with the AFIP-DGI (Argentine tax authorities) two reimbursement actions under the terms established by the first paragraph of section 81, Law No. 11683 requesting the reimbursement of 4,782,766 and 5,015,451 (not restated amounts) paid to tax authorities as income tax during tax periods 2013 through 2017 and 2018, respectively, arising from the impossibility to apply the adjustment for inflation and other adjustment mechanisms set forth by Income Tax Law (prior to the amendments introduced by Laws No. 27430 and 27468 for periods 2013 through 2017, and as revised in 2019 and amended for the 2018 tax period), plus the related compensatory interest (SIGEA [case and file management system] files No. 19144-14224/2019 and 19144-14222/2019). Since tax authorities have not yet issued a resolution with respect to the abovementioned claims, on August 7, 2020, the Bank filed both reimbursement requests under the terms of section 81, Law No. 11683 with the Federal Contentious and Administrative Trial Courts, which are pending in Courts No. 8 and 2 of such jurisdiction, respectively (cases No. 11285/2020 and 11296/2020). Both cases are currently at the trial stage.
In connection with the tax periods mentioned in the previous paragraph, on December 19, 2019, the AFIP notified the beginning of the income tax audit for the 2018 tax period, and on May 3, 2021, it notified the beginning of the income tax audit for periods 2013 through 2017. On October 4, 2021, the AFIP ended the audit for periods 2013 through 2017 as the Bank had exercised in due time its right to resort to justice, and that the admission of reimbursement is subject to a court decision.
- 40 -
NOTES TO THE CONDENSED CONSOLIDATED INTERIMFINANCIAL STATEMENTS
AS OF MARCH 31, 2022
(Translation of Financial statements originally issued in Spanish – See Note 44)
(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of March 31, 2022, except as otherwise indicated)
| 21. | COMMISSIONS INCOME | |||
|---|---|---|---|---|
| Composition | 03/31/2022 | 03/31/2021 | ||
| --- | --- | --- | --- | --- |
| Performance obligations satisfied at a point in time | ||||
| Commissions related to obligations | 6,297,815 | 5,419,983 | ||
| Commissions related to credit cards | 3,712,206 | 3,434,704 | ||
| Commissions related to insurance | 653,161 | 668,559 | ||
| Commissions related to trading and foreign exchange transactions | 242,455 | 231,562 | ||
| Commissions related to securities value | 214,309 | 199,919 | ||
| Commissions related to loans and other financing | 46,437 | 34,287 | ||
| Commissions related to financial guarantees granted | 563 | 189 | ||
| Performance obligations satisfied over certain time period | ||||
| Commissions related to credit cards | 96,542 | 121,893 | ||
| Commissions related to trading and foreign exchange transactions | 8,833 | 14,041 | ||
| Commissions related to obligations | 229 | 283 | ||
| Commissions related to loans and other financing | 51 | 420 | ||
| Commissions related to financial guarantees granted | 110 | |||
| Total | 11,272,601 | 10,125,950 | ||
| 22. | DIFFERENCES IN QUOTED PRICES OF GOLD AND FOREIGN CURRENCY | |||
| --- | --- | |||
| Composition | 03/31/2022 | 03/31/2021 | ||
| --- | --- | --- | --- | --- |
| Translation of foreign currency assets and liabilities into pesos | 2,835,104 | 1,697,130 | ||
| Income from foreign currency exchange | 250,142 | 189,386 | ||
| Total | 3,085,246 | 1,886,516 | ||
| 23. | OTHER OPERATING INCOME | |||
| --- | --- | |||
| Composition | 03/31/2022 | 03/31/2021 | ||
| --- | --- | --- | --- | --- |
| Services | 1,344,499 | 1,052,452 | ||
| For initial recognition of loans and other financing | 426,616 | 4,650 | ||
| Adjustments and interest from other receivables | 253,990 | 325,355 | ||
| Other receivables from financial intermediation | 202,499 | 478,085 | ||
| Adjustments from other receivables with CER clauses | 121,931 | 92,899 | ||
| Sale of investment properties and other non-financial assets | 12,883 | |||
| Sale of property, plant and equipment | 173 | 2,649 | ||
| Other | 899,306 | 601,774 | ||
| Total | 3,261,897 | 2,557,864 |
- 41 -
NOTES TO THE CONDENSED CONSOLIDATED INTERIMFINANCIAL STATEMENTS
AS OF MARCH 31, 2022
(Translation of Financial statements originally issued in Spanish – See Note 44)
(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of March 31, 2022, except as otherwise indicated)
| 24. | EMPLOYEE BENEFITS | |||
|---|---|---|---|---|
| Composition | 03/31/2022 | 03/31/2021 | ||
| --- | --- | --- | --- | --- |
| Remunerations | 6,670,051 | 8,115,621 | ||
| Payroll taxes | 1,537,915 | 1,826,929 | ||
| Compensations and bonuses to employees | 1,225,002 | 1,071,643 | ||
| Employee services | 378,390 | 243,060 | ||
| Total | 9,811,358 | 11,257,253 | ||
| 25. | ADMINISTRATIVE EXPENSES | |||
| --- | --- | |||
| Composition | 03/31/2022 | 03/31/2021 | ||
| --- | --- | --- | --- | --- |
| Maintenance, conservation and repair expenses | 889,909 | 902,880 | ||
| Taxes | 863,084 | 839,688 | ||
| Armored truck, documentation and events | 777,822 | 801,707 | ||
| Security services | 571,719 | 584,357 | ||
| Electricity and communications | 544,584 | 618,174 | ||
| Other fees | 508,650 | 394,250 | ||
| Software | 422,784 | 493,183 | ||
| Fees to directors and syndics | 276,061 | 162,711 | ||
| Advertising and publicity | 253,827 | 89,559 | ||
| Representation, travel and transportation expenses | 66,548 | 44,896 | ||
| Insurance | 66,200 | 70,652 | ||
| Stationery and office supplies | 38,256 | 30,876 | ||
| Hired administrative services | 38,243 | 25,423 | ||
| Leases | 27,963 | 48,369 | ||
| Other | 168,262 | 189,711 | ||
| Total | 5,513,912 | 5,296,436 | ||
| 26. | OTHER OPERATING EXPENSES | |||
| --- | --- | |||
| Composition | 03/31/2022 | 03/31/2021 | ||
| --- | --- | --- | --- | --- |
| Turnover tax | 5,550,583 | 5,422,812 | ||
| From credit cards | 2,391,731 | 2,016,414 | ||
| Charges for other provisions | 427,861 | 618,143 | ||
| Deposit guarantee fund contributions | 274,665 | 348,865 | ||
| Donations | 125,300 | 1,152 | ||
| Taxes | 70,899 | 143,569 | ||
| Interest on lease liabilities | 54,773 | 64,000 | ||
| Insurance claims | 53,790 | 16,735 | ||
| From administrative, disciplinary and criminal penalties | 47,576 | |||
| Loss from sale or impairment of investments in properties and other non-financial assets | 36,093 | |||
| Other | 1,173,040 | 1,144,798 | ||
| Total | 10,122,642 | 9,860,157 |
- 42 -
NOTES TO THE CONDENSED CONSOLIDATED INTERIMFINANCIAL STATEMENTS
AS OF MARCH 31, 2022
(Translation of Financial statements originally issued in Spanish – See Note 44)
(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of March 31, 2022, except as otherwise indicated)
| 27. | 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:
| Reconciliation | 03/31/2022 | 12/31/2021 | 03/31/2021 | 12/31/2020 | ||||
|---|---|---|---|---|---|---|---|---|
| Cash and deposits in banks | 175,530,662 | 200,025,884 | 238,112,071 | 227,699,759 | ||||
| Debt Securities at fair value through profit or loss | 88,487 | 5,641 | ||||||
| Other debt securities | 214,268,426 | 159,109,156 | 193,148,076 | 233,392,014 | ||||
| Loans and other financing | 554,892 | 596,308 | 713,374 | 737,099 | ||||
| Total | 390,442,467 | 359,736,989 | 431,973,521 | 461,828,872 | ||||
| 28. | CAPITAL STOCK | |||||||
| --- | --- |
The Bank’s subscribed and paid-in capital from December 31, 2019 to March 31, 2022, amounted to 639,413.
| 29. | 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 fiscal year 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 29 provides a breakdown of the changes in the Bank’s capital stock.
The calculation of basic earnings per share is disclosed in the table of Earnings per share included in the condensed consolidated interim statement of income. See additionally note 39.
| - 43 - |
| --- |
NOTES TO THE CONDENSED CONSOLIDATED INTERIMFINANCIAL STATEMENTS
AS OF MARCH 31, 2022
(Translation of Financial statements originally issued in Spanish – See Note 44)
(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of March 31, 2022, except as otherwise indicated)
Dividends paid and proposed
During 2020 and 2021, the BCRA issued Communiqués that suspended the payment of earnings distributions resolved by the Shareholders’ Meetings, being the last one the Communiqué “A” 7312, which suspended the payment up to December 31, 2021. As a consequence of the abovementioned suspensions, as of March 31, 2022 dividends pending distribution amounted to 26,580,415, representing an aggregated of 41.57 pesos per share, which were approved by the Shareholders’ Meetings held on April 30 and October 21, 2020 and April 30, 2021.
In addition, on December 16, 2021, the BCRA issued Communiqué “A” 7421, which established as follows: (i) from January 1, 2022, through December 31, 2022, financial institutions will be allowed to distribute up to 20% of the amount of earnings that should have been distributed if the “Earnings distributions” rules had been applied, and (ii) financial institutions that have the BCRA’s authorization for the earnings distributions have to perform it in 12 equal, monthly and consecutive installments.
The Shareholders’ Meeting held on April 29, 2022, resolved to distribute cash dividends or dividends in kind, in this case, measured at market value for an amount of 14,187,873, represented 22.18 pesos per share, subject to prior authorization of the BCRA which adding the amount of 26,580,415 before mentioned, generates an aggregate amount of 40,768,288. Therefore, in compliance with the abovementioned Communiqué “A” 7421, on April 29, 2022 the Bank requested to the BCRA the authorization for the partial payment of the dividends already approved in cash or in kind, for an amount of 19,751,444 (not restated) representing 30.89 pesos per share (not restated) and the 20% of the total distributable earnings and the remaining earnings pending distribution shall be recorded under “Unappropriated earnings for dividends pending BCRA authorization” as decided in the abovementioned Shareholders Meeting held on April 29, 2022 and delegating on the Board of Directors the power to make available such amount after BCRA authorization.
On May 12, 2022, the BCRA approved the abovementioned earning distribution for 19,751,444.
| 30. | DEPOSIT GUARANTEE INSURANCE |
|---|
Law No. 24485 and Decree No. 540/1995 created the Deposit Guarantee Insurance System, which was featured as a limited, compulsory and onerous system, aimed at covering the risks of bank deposits, as subsidiary and supplementary to the deposit privilege and protection system established under the Financial Entities Law. The abovementioned legislation also provided for the incorporation of Sedesa with the exclusive purpose of managing the Deposit Guarantee Fund (DGF). Sedesa was incorporated in August 1995.
Banco Macro SA holds an 7.7330% interest in the capital stock of Sedesa according to the percentages disclosed by BCRA Communiqué “B” 12305 on March 17, 2022.
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 determine from time to time. On the other hand, the BCRA provided from the exclusion of the guarantee system, among others, of any deposits made by other financial entities, deposits made by persons related to the Bank and securities deposits.
| 31. | RESTRICTED ASSETS |
|---|
As of March 31, 2022 and December 31, 2021, the following Bank’s assets are restricted:
| Composition | 03/31/2022 | 12/31/2021 | ||
|---|---|---|---|---|
| Cash and Deposits in Banks | ||||
| •<br> Fondo de Riesgo Fintech SGR – Deposits in other entities (1). | 68 | 1 | ||
| Subtotal Cash and Deposits in Banks | 68 | 1 |
| - 44 - |
| --- |
NOTES TO THE CONDENSED CONSOLIDATED INTERIMFINANCIAL STATEMENTS
AS OF MARCH 31, 2022
(Translation of Financial statements originally issued in Spanish – See Note 44)
(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of March 31, 2022, except as otherwise indicated)
| Composition (contd.) | 03/31/2022 | 12/31/2021 | ||
|---|---|---|---|---|
| Debt securities at fair value through profit or loss and other debt securities | ||||
| • Fondo de Riesgo Fintech SGR – Debt securities at fair value through profit or loss and other debt securities (1). | 943,828 | 1,230,761 | ||
| • Discount bonds in pesos regulated by Argentine legislation, maturing in 2033 for the minimum statutory guarantee account required for Agents to act in the new categories contemplated under Resolution No. 622/2013, as amended, of the Argentine Securities Commission (CNV). | 58,356 | 56,516 | ||
| • Federal Government Treasury Bonds in pesos adjusted by CER 1.40%, maturity 03/27/2023, securing the sectorial Credit Program of the Province of San Juan, production investment financing fund. | 51,066 | 51,825 | ||
| • Federal Government Treasury Bonds in pesos adjusted by CER 1.40%, maturity 03/27/2023, securing the regional economies Competitiveness Program – IDB loan No. 3174/OC-AR. | 20,644 | 20,951 | ||
| • Federal Government Treasury Bonds in pesos adjusted by CER 1.40%, maturity 03/27/2023, 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). | 9,127 | 9,262 | ||
| Subtotal debt securities at fair value through profit or loss and other debt securities | 1,083,021 | 1,369,315 | ||
| Other financial assets | ||||
| • Fondo de Riesgo Fintech SGR – Mutual fund shares (1). | 204,749 | 236,288 | ||
| • Mutual fund shares for minimum statutory guarantee account required for Agents to act in the new categories contemplated under Resolution No. 622/13, as amended, of the CNV. | 187,886 | 174,971 | ||
| • Sundry debtors – Other. | 5,489 | 5,835 | ||
| • Sundry debtors – attachment within the scope of the claim filed by the DGR against the CABA for turnover tax differences. | 827 | 960 | ||
| Subtotal Other financial assets | 398,951 | 418,054 | ||
| Loans and other financing – non-financial private sector and foreign residents | ||||
| • Interests derived from contributions made as protector partner (2). | 718,389 | 885,031 | ||
| • Fondo de Riesgo Fintech SGR – Loans and other financing (1). | 1,020 | 2,405 | ||
| Subtotal loans and other financing | 719,409 | 887,436 | ||
| Financial assets delivered as a guarantee | ||||
| • Special guarantee checking accounts opened in the BCRA for transactions related to the electronic clearing houses and similar entities. | 15,999,559 | 18,020,036 | ||
| • For securities forward contracts. | 13,415,360 | |||
| • Guarantee deposits related to credit and debit card transactions. | 2,021,139 | 1,529,646 | ||
| • Other guarantee deposits. | 611,845 | 1,301,375 | ||
| Subtotal Financial assets delivered as a guarantee | 32,047,903 | 20,851,057 |
| - 45 - |
| --- |
NOTES TO THE CONDENSED CONSOLIDATED INTERIMFINANCIAL STATEMENTS
AS OF MARCH 31, 2022
(Translation of Financial statements originally issued in Spanish – See Note 44)
(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of March 31, 2022, except as otherwise indicated)
| Composition (contd.) | 03/31/2022 | 12/31/2021 | ||
|---|---|---|---|---|
| Other non-financial assets | ||||
| • Real property related to a call option sold. | 90,231 | 90,231 | ||
| • Fondo<br> de Riesgo Fintech SGR – Other non-financial assets (1). | 461 | 390 | ||
| Subtotal other non-financial assets | 90,692 | 90,621 | ||
| Total | 34,340,044 | 23,616,484 | ||
| (1) | According to Law 24467, as amended, and Fintech SGR By-Law, this entity has a risk fund (“Fondo<br>de Riesgo”) which its main objective is to cover the guarantees granted to the protector partners and third parties. The assets<br>of the risk fund could only be applied to partners withdrawals, to cover guarantees and other direct expenses. | |||
| --- | --- | |||
| (2) | As of March 31, 2022 and December 31, 2021 it is related to the risk fund Fintech SGR and Garantizar<br>SGR. In order to keep tax benefits related to these contributions, they must be maintained between two and three years from the date they<br>were made. | |||
| --- | --- | |||
| 32. | 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:
| 32.1. | 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 (Accicom, Red Surcos and Secubono). 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 (Accicom, Red Surcos and Secubono) and certificates of participation (Arfintech).
As of March 31, 2022 and December 31, 2021, debt securities and certificates of participation in financial trusts for investment, amounted to 667,386 and 616,213, 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.
| 32.2. | 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 March 31, 2022 and December 31, 2021, considering the latest available accounting information as of the date of issuance of these condensed consolidated interim financial statements, the assets managed through Macro Fiducia SA (subsidiary) of this type of trusts amounted to 9,604 and 11,147, respectively.
| - 46 - |
| --- |
NOTES TO THE CONDENSED CONSOLIDATED INTERIMFINANCIAL STATEMENTS
AS OF MARCH 31, 2022
(Translation of Financial statements originally issued in Spanish – See Note 44)
(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of March 31, 2022, except as otherwise indicated)
| 32.3. | Trusts guaranteeing loans granted by the Bank |
|---|
As it is common in the Argentine banking market, the Bank requires, in some cases, that the debtors present certain assets or entitlements to receive assets in a trust as a guarantee for the loans granted. This way, the risk of losses is minimized and access to the security is guaranteed in case of the debtor's non-compliance.
Trusts usually act as conduits to collect cash from the debtor’s flow of operations and send such cash to the Bank for the payment of the debtor’s loans and thus ensure compliance with the obligations assumed by the trustor and guaranteed through the trust.
Additionally, other guarantee trusts manage specific assets, mainly real property.
Provided there is no non-compliance or delays by the debtor in the obligations assumed with the beneficiary, the trustee shall not execute the guarantee and all excess amounts as to the value of the obligations are reimbursed by the trustee to the debtor.
As of March 31, 2022 and December 31, 2021, considering the latest available accounting information as of the date of issuance of these condensed consolidated interim financial statements, the assets managed by the Bank amounted to 2,294,191 and 2,349,163, respectively.
| 32.4. | Trusts in which the Bank acts as trustee (management) |
|---|
The Bank, through its subsidiaries, performs management duties of the corpus assets directly according to the agreements, performing only trustee duties and has no other interests in the trust.
In no case shall the Trustee be liable with its own assets or for any obligation deriving from the performance as trustee. Such obligations do not imply any type of indebtedness or commitment for the trustee and they will be fulfilled only through trust assets. In addition, the trustee will not encumber the corpus assets or dispose of them beyond the limits established in the related trust agreements. The fees earned by the Bank from its role as trustee are calculated according to the terms and conditions of the agreements.
Trusts usually manage funds derived from the activities performed by trustors, for the following main purposes:
| - | Guaranteeing, in favor of the beneficiary 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 March 31, 2022 and December 31, 2021, considering the latest available accounting information as of the date of issuance of these condensed consolidated interim financial statements, the assets managed by the Bank amounted to 12,534,418 and 14,116,487, respectively.
| 33. | COMPLIANCE WITH CNV REGULATIONS |
|---|---|
| 33.1 | Compliance with CNV standards to act in the different agent categories<br>defined by the CNV: |
| --- | --- |
33.1.1 Operations of Banco Macro SA
Considering Banco Macro SA’s current operations, and according to the different categories of agents established by CNV rules (as per General Resolution No. 622/2013, as amended), the Bank is registered with this agency as agent for the custody of collective investment products of mutual funds (AC PIC FCI, for their acronyms in Spanish) – Comprehensive Depositary company, clearing and settlement agent and trading agent (ALyC and AN – comprehensive, for their acronyms in Spanish), financial trustee agent (FF, for its acronym in Spanish) and Guarantee Entity (in the process of being registered).
| - 47 - |
| --- |
NOTES TO THE CONDENSED CONSOLIDATED INTERIMFINANCIAL STATEMENTS
AS OF MARCH 31, 2022
(Translation of Financial statements originally issued in Spanish – See Note 44)
(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of March 31, 2022, except as otherwise indicated)
Additionally, the Bank’s shareholders’ equity as of March 31, 2022 stated in UVAs amounted to 2,592,543,499 and exceeds the minimum amount required by such 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 required statutory guarantee account of 710,175 UVAs, which the Bank paid-in with government securities as described in note 31 and the cash deposits in BCRA accounts 000285 and 80285 belonging to the Bank.
| 33.1.2 | 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 March 31, 2022 stated in UVAs amounted to 37,839,536 and exceeds the minimum amount required by such regulation, amounting to 470,350 UVAs and the minimum statutory guarantee account required a minimum of 50% of the minimum amount of Shareholders’ equity, which the Company paid-in with mutual fund shares. Moreover, the agents “ACyD FCI” are required to have a minimum Shareholder’s equity up to 2,500.
| 33.1.3 | Operations of Macro Fondos Sociedad Gerente de Fondos Comunes<br>de Inversión SA |
|---|
Considering the current operations of this subsidiary, and according to the provisions established by CNV effective as of the approval of General Resolution No. 622/2013, as amended, issued by such agency, such Company is registered as agent for the Administration of Collective Investment Products of Mutual Funds.
Additionally, the shareholders’ equity of this Company as of March 31, 2022 stated in UVAs amounted to 12,605,237 and exceeds the minimum amount required by such regulation, amounting to 150,000 UVAs plus 20,000 UVAs per each additional mutual fund it manages. The minimum statutory guarantee account required a minimum of 50% of the minimum amount of Shareholders’ equity, which the Company paid-in with mutual fund shares.
| 33.1.4 | 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 March 31, 2022 stated in UVAs amounted to 1,006,225, 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 50% of the amounts required, shall be credited and the Shareholders’ equity may not be less than 6,000.
| 33.2 | 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 four fiscal years ended. In compliance with CNV General Resolution No. 629 requirements, the Bank has placed (i) the Inventory Books for fiscal years ended up to and including December 31, 2017, and (ii) certain documentation supporting the economic transactions for fiscal years ended up to and including December 31, 2017, under the custody of the following companies: AdeA Administradora de Archivos SA (warehouse located at Ruta 36, km 31.5, Florencio Varela, Province of Buenos Aires) and ADDOC Administración de Documentos SA (warehouse located at Avenida Circunvalación Agustín Tosco with no number, Colectora Sur, between Puente San Carlos and Puente 60 blocks, Province of Córdoba and Avenida Luis Lagomarsino 1750, formerly Ruta 8 Km 51,200, Pilar, Province of Buenos Aires).
| - 48 - |
| --- |
NOTES TO THE CONDENSED CONSOLIDATED INTERIMFINANCIAL STATEMENTS
AS OF MARCH 31, 2022
(Translation of Financial statements originally issued in Spanish – See Note 44)
(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of March 31, 2022, except as otherwise indicated)
In addition, the documentary support on a digital format is protected on the Bank’s servers.
| 33.3 | As depositary of mutual funds |
|---|
As of March 31, 2022 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 | 3,384,797,860 | 10,093,646 | ||
| Argenfunds Ahorro Pesos | 136,971,891 | 1,975,485 | ||
| Argenfunds Infraestructura | 299,458,427 | 336,484 | ||
| Argenfunds Liquidez | 3,634,902,428 | 8,544,872 | ||
| Argenfunds Renta Argentina | 65,596,732 | 751,706 | ||
| Argenfunds Renta Balanceada | 1,332,872,616 | 9,495,813 | ||
| Argenfunds Renta Capital | 20,525,957 | 2,312,603 | ||
| Argenfunds Renta Crecimiento | 10,752,516 | 1,156,381 | ||
| Argenfunds Renta Dinámica | 23,460,944,957 | 824,972 | ||
| Argenfunds Renta Fija | 158,162,730 | 3,204,911 | ||
| Argenfunds Renta Flexible | 378,774,381 | 1,759,189 | ||
| Argenfunds Renta Global | 8,983,257 | 50,188 | ||
| Argenfunds Renta Mixta | 4,085,184,192 | 3,429,332 | ||
| Argenfunds Renta Mixta Plus | 795,452 | 72,887 | ||
| Argenfunds Renta Pesos | 73,349,916 | 764,583 | ||
| Argenfunds Renta Total | 835,174,866 | 1,275,039 | ||
| Argenfunds Renta Variable | 272,791,751 | 8,567 | ||
| Argenfunds Retorno Absoluto | 424,700,590 | 1,294,073 | ||
| Pionero Acciones | 13,354,958 | 752,007 | ||
| Pionero Ahorro Dólares | 3,636,988 | 363,560 | ||
| Pionero Argentina Bicentenario | 424,876,097 | 1,585,647 | ||
| Pionero Capital | 3,413,461,192 | 4,590,112 | ||
| Pionero Empresas FCI Abierto Pymes | 212,716,983 | 1,711,739 | ||
| Pionero FF | 83,823,300 | 2,043,457 | ||
| Pionero Gestión | 949,181,047 | 1,661,191 | ||
| Pionero Pesos | 674,569,408 | 8,623,103 | ||
| Pionero Pesos Plus | 10,534,621,426 | 81,040,645 | ||
| Pionero Renta | 165,647,179 | 13,880,046 | ||
| Pionero Renta Ahorro | 329,925,593 | 9,693,767 | ||
| Pionero Renta Ahorro Plus | 638,494,855 | 3,624,131 | ||
| Pionero Renta Balanceado | 7,075,376,750 | 7,542,157 | ||
| Pionero Renta Estratégico | 698,618,187 | 3,311,314 | ||
| Pionero Renta Fija Dólares | 21,698,846 | 2,317,597 | ||
| Pionero Renta Mixta I | 78,723,946 | 518,462 |
| - 49 - |
| --- |
NOTES TO THE CONDENSED CONSOLIDATED INTERIMFINANCIAL STATEMENTS
AS OF MARCH 31, 2022
(Translation of Financial statements originally issued in Spanish – See Note 44)
(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of March 31, 2022, except as otherwise indicated)
| 34. | ACCOUNTING ITEMS THAT IDENTIFY THE COMPLIANCE WITH MINIMUM CASH REQUIREMENTS |
|---|
The items recognized by the Bank to constitute the minimum cash requirement effective for March 2022 are listed below, indicating the amounts as of month-end of the related items:
| Items | Banco Macro SA | |
|---|---|---|
| Cash and deposits in banks | ||
| Amounts in BCRA accounts | 96,476,179 | |
| Other debt securities | ||
| Liquidity letters of Central Bank of Argentina computable for the minimum cash requirements | 56,582,228 | |
| Government securities computable for the minimum cash requirements | 24,841,445 | |
| Financial assets delivered as guarantee | ||
| Special guarantee accounts with the BCRA | 15,999,559 | |
| Total | 193,899,411 | |
| 35. | 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.
There follows a description of the situation of Banco Macro SA as of March 31, 2022:
Summary proceedings filed by the BCRA
Financial summary proceedings: No. 1496 dated 02/24/2016.
Reason: control observations over subsidiaries. Penalty amount: 30,608 (not restated).
Proceeding filed against: Banco Macro SA and 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: On 04/07/2016, the Bank filed the defenses and evidence on the BCRA. On 05/18/2016 the Bank 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, the BCRA filed Resolution No. 132/20 (notified on 02/22/2021) which acquitted Delfín Jorge Ezequiel Carballo and imposed a fine to the Bank and other responsible directors. On 03/01/2021 the Bank paid the fines. On 03/15/2021 the Bank filed a direct appeal against such resolution to the BCRA, which will be decided at Courtroom I of the Federal Civil and Commercial Court of Appeals (CNACAF, for its acronym in Spanish), where resolution is pending. The fine imposed to Mr. Jorge Horacio Brito was abrogated due to his passing. On 12/03/2021, the BCRA answered the notice of the direct appeal, requesting the dismissal. At the same date the CNACAF decided to include the process into the agreement to issue a sentence. However, on 12/27/2021 and before ruling, the Court delivered a new official letter to the BCRA, in which it has to submit the entirety administrative file in paper format. To the date, the BCRA has not complied with the request.
Criminal foreign exchange summary proceedings: No. 7642 dated 10/18/2021.
Reason: Supposed non-compliance with article 1 incs. e) and f) of the Criminal Foreign Exchange Regime (TO by Decree No. 480/95), together with points 5, 9 15 and 18 of BCRA Communiqué “A” 6770, and points 1.2 and 5.3 of the BCRA Communiqué “A” 6844.
Responsibles: Banco Macro SA, Foreign Exchange Team Leader (Alfredo Muscari), head of Foreign Exchange and Banking Operations manager (Eduardo Roque Covello) and Compliance manager (Gustavo Emilio Pessagno).
| - 50 - |
| --- |
NOTES TO THE CONDENSED CONSOLIDATED INTERIMFINANCIAL STATEMENTS
AS OF MARCH 31, 2022
(Translation of Financial statements originally issued in Spanish – See Note 44)
(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of March 31, 2022, except as otherwise indicated)
Status: On 12/29/2021, Banco Macro SA and the natural persons subject to summary proceedings filed their joint defenses, offering evidence and requesting an acquittal. Such filing established that: (i) the crime charged in the summary proceedings is inadmissible and inappropriate; ii) the Criminal Foreign Exchange System is unconstitutional; iii) the infringements charged are barred by the statute of limitations; iv) the charge is null because it was filed by the director of the SEFyC (Financial Institutions and Foreign Exchange Regulatory Agency); v) the accusation made by the BCRA lacks the minimum requirements for the criminal charge to be valid; vi) there are no arguments or evidence proving a criminal behavior by Banco Macro SA’s staff; therefore, this would be an objective charge; vii) the parties charged have not participated in the events under investigation, and viii) the infringements under investigation are atypical from the objective and subjective perspectives.
Penalties imposed by the Financial Information Unit (UIF)
File: No. 248/2014 (UIF Note Presidency 245/2013 11/26/2013) dated 07/30/2014.
Reason: alleged deficiencies in preparing certain “Reports on suspicious transactions (ROS)” due to cases of infringement detected in certain customer files. Penalty amount: 330 (not restated).
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 individuals liable filed direct appeals, which will be decided at Room III of the CNACAF. Such appeals were dismissed through a final sentence dated 07/18/2019. On 08/15/2019, the Bank filed a federal extraordinary appeal which was dismissed through resolution dated 09/26/2019. On 10/03/2019 the Bank filed an appeal before Argentine Supreme Court (CSJN, for its acronym in Spanish), which is still pending resolution.
Additionally, there are pending summary proceedings before the CNV and the UIF, as described below:
File: No. 1480/2011 (CNV Resolution No. 17529) dated 09/26/2014.
Reason: potential non-compliance with the obligation to inform a “Significant Event”. Penalty amount: 500 (not restated).
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 the CNV filed a resolution dismissing the nullity and imposing a fine to the Bank jointly and severally with its Directors at the moment when the facts where investigated. Against such resolution, on 05/03/2021 a direct appeal was filed. On December 2021, the CNV referred the proceedings to the Federal Civil and Commercial Court of Appeals (CNACCF, for its acronym in Spanish), under the file number 14633/2021, styled “Szekely, Ladislao et al v. CNV on appealed administrative resolution”.
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).
- 51 -
NOTES TO THE CONDENSED CONSOLIDATED INTERIMFINANCIAL STATEMENTS
AS OF MARCH 31, 2022
(Translation of Financial statements originally issued in Spanish – See Note 44)
(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of March 31, 2022, except as otherwise indicated)
Status: on 04/23/2019, UIF passed Resolution No. 41, whereby it imposed fines to those liable. On 05/15/2019 the imposed fines were paid and on 06/12/2019, the Bank, its Board of Directors and its statutory audits filed a direct appeal against such resolution, requesting a repeal of the penalty imposed. Such appeal is in process at CNACAF. The file was submitted to Courtroom V of CNACAF that received the proceedings on 06/21/2019. On 05/11/2021, 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 12/09/2021 the CNACAF decided to allow the imposed Extraordinary appeal, on 12/10/2021, ordered that the case file be submitted to the CSJN, which took place on 12/30/2021, and the case file was received by the latter on 02/03/2022. As of the date of issuance of these condensed consolidated interim financial statements, the CSJN had not issued a decision on the appeal filed.
File: No. 1208/2014 (UIF Resolution No. 13/2016) dated 1/15/2016.
Reason: alleged failure to comply with Anti-Money Laundering Law, as amended, and UIF Resolution No. 121/11.
Persons subject to the summary proceedings: Banco Macro SA, Jorge Horacio Brito, Delfín Jorge Ezequiel Carballo, Juan Pablo Brito Devoto, Jorge Pablo Brito, Luis Carlos Cerolini, Alejandro Macfarlane, Carlos Enrique Videla, Guillermo Eduardo Stanley, Constanza Brito, Marcos Brito and Emmanuel Antonio Álvarez Agis.
Status: on 05/17/2018 UIF passed resolution No. 13/2016, whereby it filed the summary proceedings related to observations over an overall inspection performed by the BCRA. On 06/15/2018, the liable parties filed their defenses. On 07/02/2018, the UIF sustained the lack of capacity to be sued of Delfín Jorge Ezequiel Carballo, discarding his responsibility in this summary proceeding. On 01/08/2021 UIF filed Resolution No. 80 which imposed a fine to the Bank and the other liable parties. On 01/26/2021 through BCRA account, the fine was paid for an amount of 60 (not restated). On 03/02/2021, against such resolution a direct appeal to CNACAF was deducted. The proceedings will be decided at Room IV of such jurisdiction. On 05/05/2021, the UIF become a party to the case file and answered the notice served of the direct appeal imposed by the responsibles. 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 10/04/2021, the CNACAF dismissed the extraordinary appeal filed, where it was held that there was no federal grievance and no manifest arbitrariness in the resolution. On 10/18/2021 Banco Macro SA filed a petition for the denied extraordinary appeal to CSJN. The petition file has not been resolved by the CSJN.
File: No. 379/2015 (UIF Resolution No. 96/2019) dated 09/17/2019.
Reason: alleged failure to comply with Anti-Money Laundering Law, as amended, and UIF Resolution No. 121/11.
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 liable individuals were notified about the initiation of the proceedings. On 10/31/2019, the Bank and the individuals subject to summary proceedings filed their defense. On 01/07/2020, the party hearing the summary proceedings considered the defense filed and deferred the motion to dismiss for lack of capacity to be sued and statute of limitations upon issuing an opinion about the substance of the case. The administrative terms were suspended due to the social and preventive lockdown declared in the country due to the Covid-19 pandemic (DNU 297/2020), up to and including 11/29/2020. On 11/30/2020, terms were resumed (DNU 876/2020). On 03/02/2021, the passing of Mr. Jorge Horacio Brito was informed and the lapse of the action against him was requested. In addition, as part of the BCRA summary proceedings styled “File No. 100889/15 – Banco Macro SA, Summary Proceedings No. 1496”, Resolution No. 2020-132-E-GDEBCRA-SEFYC#BCRA was issued, whereby penalties were imposed on Banco Macro SA and the parties subject to those proceedings, currently pending before the CNACAF, Courtroom I (File No. 3784/2021). The transactions for which the parties are investigated have already been subject to penalties in the abovementioned BCRA summary proceedings; therefore, there cannot be simultaneous penalties based on the same subject matter. As a result, a request was made to prevent the application of all types of penalties to the parties subject to the summary proceedings. On 04/22/2021, the judge in charge of the summary proceedings informed that the pleas filed will be resolved in the final ruling; therefore, the brief will be added to the case file without analyzing the issue, expecting the issuance of a resolution. On 05/26/2021, it was advised that the terms of the summary proceedings pending with the UIF would be suspended from 05/26/2021, up to and including 05/28/2021. On 08/18/2021, it was resolved to set the case for the production of evidence and to summon all the parties involved to give testimony as parties subject to the summary proceedings. As of the date of issuance of the these condensed consolidated interim financial statements, the case is still in trial stage.
- 52 -
NOTES TO THE CONDENSED CONSOLIDATED INTERIMFINANCIAL STATEMENTS
AS OF MARCH 31, 2022
(Translation of Financial statements originally issued in Spanish – See Note 44)
(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of March 31, 2022, except as otherwise indicated)
Although the penalties described above do not involve material amounts, as of the date of issuance of these condensed consolidated interim financial statements, the total amount of monetary penalties received, pending payment due to any appeal lodged by the Bank, amounts to 500 and was recognized according to the BCRA Communiqués “A” 5689 and 5940, as amended and supplemented.
The Bank’s Management and its legal counsel consider no further significant accounting effects could arise from the final outcome of the above mentioned judicial proceedings.
| 36. | 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> 03/31/2022 | 03/31/2022 | 12/31/2021 | |||||
|---|---|---|---|---|---|---|---|---|---|
| Subordinated Resettable – Class A | USD | 400,000,000 | (1) | USD | 400,000,000 | 46,028,349 | 48,719,287 | ||
| Non-subordinated – Class B | $ | 4,620,570,000 | (2) | $ | 2,889,191,000 | 3,096,173 | 3,471,423 | ||
| Total | 49,124,522 | 52,190,710 |
On April 26, 2016, the general regular shareholders’ meeting approved the creation of a Global Program for the Issuance of Medium-Term Debt Securities, in accordance with the provisions of Law No. 23576, as amended and further applicable regulations, up to a maximum amount outstanding at any time during the term of the program of USD 1,000,000,000 (one billion US dollars), or an equal amount in other currencies or power units, under which it is possible to issue simple corporate bonds, not convertible into shares in one or more classes. Also, on April 28, 2017, the General and Special Shareholder’ Meeting resolved to extend the maximum amount of the abovementioned Global Program up to USD 1,500,000,000 (one thousand five hundred millions US dollars), and on April 27, 2018, the abovementioned Shareholders’ Meeting resolved to increase the maximum amount of the Global Program for the Issuance of Corporate Bonds for, in face values, from USD 1,500,000,000 to USD 2,500,000,000 or an equal amount in other currencies, as determined by the Board of Directors in due time. Finally, on October 20, 2021 due to a Board of Director resolution, the Bank required from the CNV a five-years extension of the abovementioned program, which was approved by the Regulator through a note issued on December 15, 2021.
| (1) | On November 4, 2016, under the abovementioned Global Program, the Bank issued Subordinated Resettable<br>Corporate Bonds, class A, at a fixed rate of 6.750% p.a. until reset date, fully amortizable upon maturity (November 4, 2026) for<br>a face value of USD 400,000,000 (four hundred million US dollars), under the terms and conditions set forth in the pricing supplement<br>dated October 21, 2016. Interest is paid semiannually on May 4 and November 4 of every year and the reset date was November 4,<br>2021. |
|---|
As of the date of issuance of these condensed consolidated interim financial statements, the reset rate was established until the maturity date at 6.643% as a result of the benchmark reset rate plus 546.3 basis points, according to the abovementioned terms and conditions. As the Bank had not exercised the option to fully or partially redeem the issuance on the reset date and under the conditions established in the pricing supplement, it was established up to maturity.
On the other hand, it could be fully 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 in 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.
- 53 -
NOTES TO THE CONDENSED CONSOLIDATED INTERIMFINANCIAL STATEMENTS
AS OF MARCH 31, 2022
(Translation of Financial statements originally issued in Spanish – See Note 44)
(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of March 31, 2022, except as otherwise indicated)
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 of those dates.
On May 9, 2022, the Bank fully paid the principal and interest for a face value of 2,889,191,000.
On May 2, 2022, under the Global Program abovementioned, the Bank issued non-subordinated simple corporate bonds Class E not convertible into shares, for a face value of USD 17,000,000 at a fixed rate of 1.45%, fully amortizable upon maturity (May 2, 2024), under the terms and conditions set forth in the price supplement dated April 21, 2022. Interest is paid quarterly on August 2, 2022, November 2, 2022, February 2, 2023, May 2, 2023, August 2, 2023, November 2, 2023, February 2, 2024, and May 2, 2024.
At any time and according to the current regulations and by the foreign exchange regime issued by the BCRA, in particular, the Bank will be able to redeem, fully but not partially, the Class E Corporate Bonds to a price equally to (a) 102% of the remaining principal if the Bank will decide to redeem during the term between the Issuance and the Settlement date up to 9 (nine) month, including the last day; (b) 101 % of the remaining principal, if the Bank will decide to redeem during the terms beginning after the 9 (nine) month since the Issuance date up to maturity date of the Class E, in all cases with expenses and accrued interest not paid, excluding the redeem date.
| 37. | OFF BALANCE SHEET TRANSACTIONS |
|---|
In addition to note 4, the Bank maintains different off balance sheet transactions, pursuant to the BCRA standards. The composition of the amounts of the main off balance sheet transactions as of March 31, 2022 and December 31, 2021, is as follows:
| Composition | 03/31/2022 | 12/31/2021 | ||
|---|---|---|---|---|
| Custody of government and private securities and other assets held by third parties | 415,026,395 | 451,295,652 | ||
| Preferred and other collaterals received from customers (1) | 117,437,732 | 139,850,641 | ||
| Outstanding checks not yet paid | 10,636,095 | 12,939,552 | ||
| Checks already deposited and pending clearance | 7,776,134 | 9,412,343 | ||
| (1) | Related to collaterals used to secure loans transactions and other financing, under the applicable rules in<br>force on this matter. | |||
| --- | --- | |||
| 38. | TAX AND OTHER CLAIMS | |||
| --- | --- | |||
| 38.1. | 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 from June 30, 1995, through June 30, 1999, and for the irregular six-month period ended December 31, 1999) and by<br>former Banco Macro SA (for the fiscal years ended from December 31, 1998, through December 31, 2000). |
|---|
- 54 -
NOTES TO THE CONDENSED CONSOLIDATED INTERIMFINANCIAL STATEMENTS
AS OF MARCH 31, 2022
(Translation of Financial statements originally issued in Spanish – See Note 44)
(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of March 31, 2022, except as otherwise indicated)
The matter under discussion that has not been resolved as yet and on which the regulatory agency bases its position is the impossibility of deducting credits that have collateral security, an issue that has been addressed by the Federal Administrative Tax Court and CSJN in similar cases, which have issued resolutions that are favorable to the Bank’s position.
| b) | The AFIP’s ex-officio undocumented expenses determinations for the periods February, April, May 2015<br>and from July 2015 through January 2018, both included of date April 19, 2021. On October 5, 2021, the Bank filed<br>an appeal to the Federal Tax Court which is in process in Courtroom B, Office 6, under file 2021-96970075. |
|---|---|
| c) | Ex-officio turnover tax determinations in progress and/or adjustments, as a withholding agent and over<br>municipal 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 abovementioned proceedings other than those disclosed in these condensed consolidated interim financial statements.
| 38.2. | Other claims |
|---|
Before merging with and into the Bank, Banco Privado de Inversiones SA (BPI) had a pending class action styled “Adecua v. Banco Privado de Inversiones on ordinary proceedings”, File No. 19073/2007, pending with 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, who also submitted them to the trial court, which received them on 09/27/2021 and were requested as effectum vivendi in proceedings “Estado Nacional – Ministerio Producción de la Nación c/ Asociación de Defensa de los Consumidores y Usuarios de la R.A y otros s/Ordinario” (File No. 6757/2013), in which the Bank is not a party, by the commercial court, clerk’s office No. 11. As of the date of issuance of these condensed consolidated interim financial statements, resolution is still pending.
Moreover, the Bank is subject to a class actions for the same purpose, currently pending with Commercial Court No. 7 in and for the CABA, Clerk’s Office No. 13, styled Unión de Usuarios y Consumidores v. Nuevo Banco Bisel on ordinary proceedings, File No. 44704/2008.
There are also other class actions initiated by consumer protection associations in relation to the collection of certain commissions and/or financial charges or practices and certain withholdings made by the Bank to individuals as CABA stamp tax withholding agent.
The Bank’s Management and its legal counsel consider no further significant accounting effects could arise from the final outcome of the abovementioned proceedings other than those disclosed in these condensed consolidated interim financial statements.
| 39. | 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. |
| --- | --- |
- 55 -
NOTES TO THE CONDENSED CONSOLIDATED INTERIMFINANCIAL STATEMENTS
AS OF MARCH 31, 2022
(Translation of Financial statements originally issued in Spanish – See Note 44)
(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of March 31, 2022, except as otherwise indicated)
| 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, the earnings distribution approved by the Shareholders’ Meeting of the Bank could only be formalized once the Superintendence<br>of Financial and Foreign Exchange Institutions approved it. |
|---|
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, for which a normative reserve was created, and its balance as of March 31, 2022 was 12,752,687 (nominal value: 3,475,669).
The Bank must verify that, after completion of the earning distribution, a capital maintenance margin equal to 3.5% of risk-weighted assets is kept, apart from the minimum capital required by law, to be integrated by Tier 1(Con1) ordinary capital, net of deductible items (CDCOn1).
Additionally to what was previously mentioned, and according to BCRA Communiqué “A” 7312, the earning distribution was suspended up to December 31, 2021. In accordance with BCRA Communiqué “A” 7421, effective since January 1 and up to December 31, 2022, financial institutions will be allowed to distribute their earnings up to 20% of the amount that would have been distributed if the “Earnings distributions” rules had been applied. Since January 2022, financial institutions that have the BCRA authorization for earnings distributions have to perform it in 12 equal, monthly and consecutive installments. See also note 29.
| 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 29, 2022 and taking into account that at the end of the fiscal year ended December 31, 2021, the Bank had negative unappropriated retained earnings for 8,920,325 as a consequence of recording in the income for the previous period the accrued monetary effect which were measured at fair value through other comprehensive income (OCI), for which the unappropriated retaining earnings amounted to 18,202,171, were applied as follows:
| a) | 3,640,434 to the legal reserve; |
|---|---|
| b) | 373,864 to the Personal Asset Tax on Business Companies (Impuesto<br>sobre los Bienes Personales Sociedades y Participaciones), and; |
| --- | --- |
| c) | 14,187,873 to pay a cash dividend and/or a dividend in kind, in the latter case valued at market value,<br>prior BCRA authorization. |
| --- | --- |
For further information see note 29.
- 56 -
NOTES TO THE CONDENSED CONSOLIDATED INTERIMFINANCIAL STATEMENTS
AS OF MARCH 31, 2022
(Translation of Financial statements originally issued in Spanish – See Note 44)
(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of March 31, 2022, except as otherwise indicated)
| 40. | CAPITAL MANAGEMENT, CORPORATE GOVERNANCE TRANSPARENCY POLICY AND RISK MANAGEMENT |
|---|
As financial institution, Banco Macro SA is governed by Financial Entities Law No. 21526, as supplemented, and the regulations issued by the BCRA and, is exposed to intrinsic risks related to the financial industry. Moreover, the Bank adheres to the good banking practices laid out in BCRA Communiqué “A” 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 43 to the consolidated financial statements as of December 31, 2021, already issued.
Additionally, the table below shows the minimum capital requirements measured on a consolidated basis, effective for the month of March 2022, together with the integration thereof (computable equity) as of the end of such month:
| Item | 03/31/2022 | |
|---|---|---|
| Minimum capital requirements | 63,580,583 | |
| Computable equity | 300,195,796 | |
| Capital surplus | 236,615,213 | |
| 41. | 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 Argentine peso and the US dollar.
During 2021 and 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 material restrictions to the exchange market access were also established.
At the same time, the government’s debt restructuring process continued under domestic and foreign legislation. The negotiations carried out as of the date of issuance of these condensed consolidated interim financial statements include the agreement reached by the Federal Executive’s and the International Monetary Fund regarding the country’s indebtedness with that body.
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 70% as of the date of issuance of these condensed consolidated interim financial statements.
Even though, at the date of issuance of these condensed consolidated interim financial statements certain volatility levels previously mentioned have been decreased, the local and international macroeconomic context generates certain degree of uncertainty regarding its future progress, and also considering the effects of the Russian invasion of Ukraine in the level of the global economic recovery, after the pandemic as mentioned in note 42.
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.
- 57 -
NOTES TO THE CONDENSED CONSOLIDATED INTERIMFINANCIAL STATEMENTS
AS OF MARCH 31, 2022
(Translation of Financial statements originally issued in Spanish – See Note 44)
(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of March 31, 2022, except as otherwise indicated)
| 42. | EFFECTS OF THE CORONAVIRUS (COVID-19) OUTBREAK |
|---|
In early March 2020, the World Health Organization declared Coronavirus (Covid-19) a pandemic. This emergency situation over public health was worldwide expanded and several countries took 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 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.
Considering the size of the abovementioned situation, the Bank's Management estimates, on an ongoing basis, the effects on its operations, the financial situation and in its profit or loss.
| 43. | EVENTS AFTER REPORTING PERIOD |
|---|
No other significant events occurred between the end of the period and the issuance of these condensed consolidated interim financial statements that may materially affect the financial position or the profit and loss for the period, not disclosed in these condensed consolidated interim financial statements.
| 44. | ACCOUNTING PRINCIPLES – EXPLANATION ADDED FOR TRANSLATION INTO ENGLISH |
|---|
These condensed consolidated interim financial statements are presented in accordance with the accounting framework established by the BCRA, as mentioned in note 3. These accounting standards may not conform to accounting principles generally accepted in other countries.
| - 58 - | Delfín Jorge Ezequiel Carballo<br> Chairperson |
| --- | --- |
EXHIBIT B
| CONSOLIDATED CLASSIFICATION OF LOANS AND OTHER FINANCING | ||||
|---|---|---|---|---|
| BY SITUATION AND COLLATERAL RECEIVED | ||||
| AS OF MARCH 31, 2022 AND DECEMBER 31, 2021 | ||||
| (Translation<br> of the Financial statements originally issued in Spanish – See Note 44) | ||||
| (Figures stated in thousands<br> of pesos in terms of purchasing power of Argentine pesos as of March 31, 2022, except as otherwise indicated) | ||||
| COMMERCIAL | 03/31/2022 | 12/31/2021 | ||
| --- | --- | --- | --- | --- |
| In normal situation | 77,732,652 | 97,674,664 | ||
| With senior<br> “A” collateral and counter-collateral | 9,535,041 | 13,306,645 | ||
| With senior<br> “B” collateral and counter-collateral | 15,278,760 | 18,766,384 | ||
| Without<br> senior collateral or counter-collateral | 52,918,851 | 65,601,635 | ||
| Subject to special monitoring | 1,148,722 | 2,473,689 | ||
| In<br> observation | ||||
| With senior<br> “A” collateral and counter-collateral | 298 | 1,711 | ||
| With senior<br> “B” collateral and counter-collateral | 777,204 | 2,046,627 | ||
| Without<br> senior collateral or counter-collateral | 371,220 | 425,351 | ||
| Troubled | 1,884,378 | 871,602 | ||
| With senior<br> “B” collateral and counter-collateral | 1,256,530 | 127,804 | ||
| Without<br> senior collateral or counter-collateral | 627,848 | 743,798 | ||
| With high risk of insolvency | 359,104 | 134,011 | ||
| With senior<br> “A” collateral and counter-collateral | 114,696 | 117,222 | ||
| With senior<br> “B” collateral and counter-collateral | 125,448 | 8,003 | ||
| Without<br> senior collateral or counter-collateral | 118,960 | 8,786 | ||
| Subtotal Commercial | 81,124,856 | 101,153,966 |
| - 59 - | Delfín Jorge Ezequiel Carballo<br> Chairperson |
| --- | --- |
EXHIBIT B
(Continued)
| CONSOLIDATED CLASSIFICATION OF LOANS AND OTHER FINANCING | ||||
|---|---|---|---|---|
| BY SITUATION AND COLLATERAL RECEIVED | ||||
| AS OF MARCH 31, 2022 AND DECEMBER 31, 2021 | ||||
| (Translation<br> of the Financial statements originally issued in Spanish – See Note 44) | ||||
| (Figures<br> stated in thousands of pesos in terms of purchasing power of Argentine pesos as of March 31, 2022, except as otherwise indicated) | ||||
| CONSUMER AND MORTGAGE | 03/31/2022 | 12/31/2021 | ||
| --- | --- | --- | --- | --- |
| Performing | 300,503,482 | 317,178,571 | ||
| With senior “A” collateral and counter-collateral | 17,705,901 | 22,172,400 | ||
| With senior “B” collateral and counter-collateral | 23,491,506 | 26,959,767 | ||
| Without senior collateral or counter-collateral | 259,306,075 | 268,046,404 | ||
| Low risk | 2,176,978 | 2,245,062 | ||
| With senior “A” collateral and counter-collateral | 93,013 | 72,928 | ||
| With senior “B” collateral and counter-collateral | 93,962 | 133,748 | ||
| Without senior collateral or counter-collateral | 1,990,003 | 2,038,386 | ||
| Low risk - in special treatment | 21,940 | 72,331 | ||
| With senior “B” collateral and counter-collateral | 23,735 | |||
| Without senior collateral or counter-collateral | 21,940 | 48,596 | ||
| Medium risk | 1,511,984 | 1,684,692 | ||
| With senior “A” collateral and counter-collateral | 40,072 | 10,704 | ||
| With senior “B” collateral and counter-collateral | 42,412 | 69,506 | ||
| Without senior collateral or counter-collateral | 1,429,500 | 1,604,482 | ||
| High risk | 1,799,785 | 1,928,464 | ||
| With senior “A” collateral and counter-collateral | 24,047 | 24,586 | ||
| With senior “B” collateral and counter-collateral | 120,290 | 130,850 | ||
| Without senior collateral or counter-collateral | 1,655,448 | 1,773,028 | ||
| Irrecoverable | 787,896 | 910,964 | ||
| With senior “A” collateral and counter-collateral | 26,822 | 22,267 | ||
| With senior “B” collateral and counter-collateral | 121,973 | 221,716 | ||
| Without senior collateral or counter-collateral | 639,101 | 666,981 | ||
| Subtotal consumer and mortgage | 306,802,065 | 324,020,084 | ||
| Total | 387,926,921 | 425,174,050 |
| - 60 - | Delfín Jorge Ezequiel Carballo<br> Chairperson |
| --- | --- |
EXHIBIT B
(Continued)
| CONSOLIDATED CLASSIFICATION OF LOANS AND OTHER FINANCING |
|---|
| BY SITUATION AND COLLATERAL RECEIVED |
| AS OF MARCH 31, 2022 AND DECEMBER 31, 2021 |
| (Translation of the Financial statements originally issued in Spanish – See Note 44) |
| (Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of March 31, 2022, except as otherwise indicated) |
This exhibit discloses the contractual figures as established by the BCRA. The conciliation with the condensed consolidated interim statement of financial position is listed below:
| 03/31/2022 | 12/31/2021 | |||||
|---|---|---|---|---|---|---|
| Loans and other financing | 373,888,227 | 408,984,539 | ||||
| Added: | ||||||
| Allowances for loans and other financing | 9,884,995 | 11,179,097 | ||||
| Adjustment amortized cost and fair value | 728,882 | 1,311,004 | ||||
| Debt securities of financial trust - Measured at amortized cost | 71,973 | 206,841 | ||||
| Corporate bonds | 68,008 | 100,385 | ||||
| Subtract: | ||||||
| Interest and other accrued items receivable from financial assets with impaired credit value | (125,064 | ) | (114,771 | ) | ||
| Guarantees provided and contingent liabilities | 3,409,900 | 3,506,955 | ||||
| Total computable items | 387,926,921 | 425,174,050 |
| - 61 - | Delfín Jorge Ezequiel Carballo<br> Chairperson |
| --- | --- |
EXHIBIT C
| CONSOLIDATED CONCENTRATION OF LOANS AND FINANCING FACILITIES | ||||||||
|---|---|---|---|---|---|---|---|---|
| AS OF MARCH 31, 2022 AND DECEMBER 31, 2021 | ||||||||
| (Translation of the Financial statements originally issued in Spanish – See Note 44) | ||||||||
| (Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of March 31, 2022, except as otherwise indicated) | ||||||||
| 03/31/2022 | 12/31/2021 | |||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| 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 | 19,304,806 | 4.98 | 21,327,522 | 5.02 | ||||
| 50 next largest customers | 26,221,292 | 6.76 | 34,688,920 | 8.16 | ||||
| 100 next largest customers | 20,241,380 | 5.22 | 24,736,880 | 5.82 | ||||
| Other customers | 322,159,443 | 83.04 | 344,420,728 | 81.00 | ||||
| Total (1) | 387,926,921 | 100.00 | 425,174,050 | 100.00 |
(1) See reconciliation in Exhibit B
| - 62 - | Delfín Jorge Ezequiel Carballo<br> Chairperson |
| --- | --- |
EXHIBIT D
CONSOLIDATED BREAKDOWN OF LOANS AND OTHER FINANCINGBY TERM
AS OF MARCH 31, 2022
(Translation of the Financial statements originally issued in Spanish – See Note 44)
(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of March 31, 2022, except as otherwise indicated)
| Remaining terms to maturity | ||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Item | Matured | Up to 1<br><br> month | Over 1<br><br> month<br> and<br><br> up to 3<br><br> months | Over 3<br><br> months<br><br><br> and up to 6<br><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 24<br><br> months | Total | ||||||||
| Non-financial<br> government sector | 464,049 | 369,170 | 443,227 | 1,294,494 | 2,570,940 | |||||||||||
| Financial<br> sector | 13,933 | 27,238 | 59,450 | 142,779 | 714,436 | 76,221 | 1,034,057 | |||||||||
| Non-financial<br> private sector and foreign residents | 1,795,259 | 151,024,815 | 45,283,620 | 49,035,680 | 63,852,384 | 82,357,702 | 121,504,230 | 514,853,690 | ||||||||
| Total | 1,795,259 | 151,502,797 | 45,680,028 | 49,538,357 | 65,289,657 | 83,072,138 | 121,580,451 | 518,458,687 |
CONSOLIDATED BREAKDOWN OF LOANS AND OTHER FINANCINGBY TERM
AS OF DECEMBER 31, 2021
(Translation of the Financial statements originally issued in Spanish – See Note 44)
(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of March 31, 2022, except as otherwise indicated)
| Remaining terms to maturity | ||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Item | Matured | Up to 1<br><br> month | Over 1<br><br> month<br> and<br><br> up to 3<br><br> months | Over 3<br><br> months<br><br><br> and up to 6<br><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 24<br><br> months | Total | ||||||||
| Non-financial<br> government sector | 269,124 | 724,205 | 565,203 | 1,428,391 | 554,519 | 3,541,442 | ||||||||||
| Financial<br> sector | 296,817 | 773,176 | 43,433 | 150,733 | 846,095 | 155,605 | 2,265,859 | |||||||||
| Non-financial<br> private sector and foreign residents | 1,756,545 | 156,558,066 | 49,092,828 | 56,074,827 | 74,046,545 | 87,402,713 | 133,394,355 | 558,325,879 | ||||||||
| Total | 1,756,545 | 157,124,007 | 50,590,209 | 56,683,463 | 75,625,669 | 88,803,327 | 133,549,960 | 564,133,180 |
This exhibit discloses the contractual future cash flows that include interest and charges to be accrued until maturity of the contracts.
| - 63 - | Delfín Jorge Ezequiel Carballo<br> Chairperson |
| --- | --- |
EXHIBIT F
CONSOLIDATED CHANGE OF PROPERTY, PLANT AND EQUIPMENT
AS OF MARCH 31, 2022
(Translation of the Financial statements originally issued in Spanish – See Note 44)
(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of March 31, 2022, except as otherwise indicated)
| Original | |||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| value at | Depreciation of the period | Residual | |||||||||||||||
| beginning | Total<br> life | Difference | Difference | value at | |||||||||||||
| of fiscal | estimated in | for | for | Of the | At the | the end of | |||||||||||
| Item | year | years | Increases | Decreases | Transfers | conversion | Accumulated | Transfers | Decrease | conversion | period | end | the period | ||||
| Cost | |||||||||||||||||
| Real property | 55,630,829 | 50 | 10,739 | 42,713 | 5,591,905 | 297,002 | 5,888,907 | 49,795,374 | |||||||||
| Furniture and facilities | 7,674,196 | 10 | 40,766 | 578 | 49,071 | (8 | ) | 3,780,733 | 294 | (5 | ) | 164,379 | 3,944,813 | 3,818,634 | |||
| Machinery and equipment | 10,915,065 | 5 | 171,222 | 181 | 174,000 | 2 | 7,535,649 | 352 | 39 | (3 | ) | 381,987 | 7,917,946 | 3,342,162 | |||
| Vehicles | 1,551,025 | 5 | 27,726 | 6,439 | (3,169 | ) | 1,271,807 | (352 | ) | 3,938 | 36,204 | 1,303,721 | 265,422 | ||||
| Other | 1,037 | 3 | 7 | 494 | 5 | 86 | 585 | 459 | |||||||||
| Work in progress | 1,841,103 | 271,374 | (262,606 | ) | 1,849,871 | ||||||||||||
| Right of<br> use real property | 4,381,944 | 5 | 111,927 | (9 | ) | (1,335 | ) | 2,445,989 | (505 | ) | 207,290 | 2,652,774 | 1,839,753 | ||||
| Total<br> property, plant and equipment | 81,995,199 | 633,754 | 7,198 | (1,334 | ) | 20,626,577 | 4,271 | (508 | ) | 1,086,948 | 21,708,746 | 60,911,675 |
CONSOLIDATED CHANGEOF PROPERTY, PLANT AND EQUIPMENT
AS OF DECEMBER31, 2021
(Translation of the Financial statements originally issued in Spanish – See Note 44)
(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of March 31, 2022, except as otherwise indicated)
| Original | Residual | ||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| value at | Depreciation for the fiscal year | value at | |||||||||||||||
| beginning | Total life | Difference | Difference | For the | the end of | ||||||||||||
| of fiscal | estimated in | Transfers | for | Transfers | for | fiscal | the fiscal | ||||||||||
| Item | year | years | Increases | Decreases | (1) | conversion | Accumulated | (1) | Decrease | conversion | year | At the end | year | ||||
| Cost | |||||||||||||||||
| Real property | 53,391,131 | 50 | 346,474 | 101,446 | 1,994,670 | 4,372,422 | 114,056 | 12,829 | 1,118,256 | 5,591,905 | 50,038,924 | ||||||
| Furniture and facilities | 6,957,279 | 10 | 225,803 | 2,332 | 493,603 | (157 | ) | 3,130,456 | 156 | 1,215 | (130 | ) | 651,466 | 3,780,733 | 3,893,463 | ||
| Machinery and equipment | 9,621,974 | 5 | 741,582 | 35,732 | 588,135 | (894 | ) | 6,053,185 | (817 | ) | 5,367 | (584 | ) | 1,489,232 | 7,535,649 | 3,379,416 | |
| Vehicles | 1,494,459 | 5 | 149,071 | 96,239 | 3,734 | 1,223,176 | 207 | 84,751 | 133,175 | 1,271,807 | 279,218 | ||||||
| Other | 1,544 | 3 | 366 | 481 | (392 | ) | 714 | 481 | (210 | ) | 471 | 494 | 543 | ||||
| Work in progress | 1,469,063 | 2,557,869 | (2,185,829 | ) | 1,841,103 | ||||||||||||
| Right of<br> use real property | 3,637,246 | 5 | 759,591 | 28,356 | 18,638 | (5,175 | ) | 1,578,309 | 847 | 23,975 | (1,567 | ) | 892,375 | 2,445,989 | 1,935,955 | ||
| Total<br> property, plant and equipment | 76,572,696 | 4,780,756 | 264,586 | 912,951 | (6,618 | ) | 16,358,262 | 114,449 | 128,618 | (2,491 | ) | 4,284,975 | 20,626,577 | 61,368,622 | |||
| (1) | During<br> the fiscal year 2021, under this item transfers were made to Non-current assets held for<br> sale. | ||||||||||||||||
| --- | --- |
| - 64 - | Delfín Jorge Ezequiel Carballo<br> Chairperson |
| --- | --- |
EXHIBIT F
(Continued)
CONSOLIDATED CHANGE IN INVESTMENT PROPERTY
AS OF MARCH 31, 2022
(Translation of the Financial statements originally issued in Spanish – See Note 44)
(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of March 31, 2022, except as otherwise indicated)
| **** | Original | **** | **** | **** | **** | **** | **** | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| **** | Value at | **** | **** | **** | **** | **** | Depreciation of the period | Residual | |||||
| **** | beginning | Useful life | **** | **** | **** | Difference | **** | **** | **** | Difference | **** | **** | value at the |
| **** | of fiscal | estimated in | **** | **** | **** | for | **** | **** | **** | for | Of the | **** | end of the |
| Item | year | years | Increases | Decreases | Transfers | conversion | Accumulated | Transfers | Decrease | conversion | period | At the end | period |
| Cost | |||||||||||||
| Leased properties | 268,131 | 50 | 9,686 | 785 | 10,471 | 257,660 | |||||||
| Other investment properties | 816,829 | 50 | 75,741 | 12,125 | 3 | 65,806 | 40 | 24,012 | 89,778 | 790,670 | |||
| Total investment property | 1,084,960 | 75,741 | 12,125 | 3 | 75,492 | 40 | 24,797 | 100,249 | 1,048,330 |
CONSOLIDATED CHANGE IN INVESTMENT PROPERTY
AS OF DECEMBER 31, 2021
(Translation of the Financial statements originally issued in Spanish – See Note 44)
(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of March 31, 2022, except as otherwise indicated)
| **** | Original Value at | **** | **** | **** | **** | **** | **** | **** | Depreciation for the fiscal year | Residual | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Item | beginning of fiscal year | Useful life estimated in years | Increases | Decreases | Transfers | **** | Difference for conversion | **** | Accumulated | Transfers | **** | Decrease | Difference for conversion | For the fiscal year | At the end | value at the end of the fiscal year |
| Cost | ||||||||||||||||
| Leased properties | 385,818 | 50 | (117,687 | ) | 63,343 | (57,577 | ) | 3,920 | 9,686 | 258,445 | ||||||
| Other investment properties | 1,483,716 | 50 | 147,552 | 27,534 | (786,827 | ) | (78 | ) | 88,950 | (56,479 | ) | 4,508 | 37,843 | 65,806 | 751,023 | |
| Total investment property | 1,869,534 | 147,552 | 27,534 | (904,514 | ) | (78 | ) | 152,293 | (114,056 | ) | 4,508 | 41,763 | 75,492 | 1,009,468 |
| - 65 - | Delfín Jorge Ezequiel Carballo<br> Chairperson |
| --- | --- |
EXHIBIT G
CONSOLIDATEDCHANGE IN INTANGIBLE ASSETS
ASOF MARCH 31, 2022
(Translation of the Financial statements originally issued in Spanish – See Note 44)
(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of March 31, 2022, except as otherwise indicated)
| **** | Original<br><br> Value at beginning of | Useful life estimated in | **** | **** | **** | Depreciation of the period | Residual<br><br> value at the end of the | ||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Item | fiscal year | years | Increases | Decreases | Transfers | Accumulated | Transfers | Decrease | Of the period | At the end | period |
| Cost | |||||||||||
| Licenses | 5,815,645 | 5 | 45,384 | 3,557,542 | 256,183 | 3,813,725 | 2,047,304 | ||||
| Other<br> intangible assets | 18,877,123 | 5 | 997,586 | 35 | 11,380,405 | 35 | 824,030 | 12,204,400 | 7,670,274 | ||
| Total<br> intangible assets | 24,692,768 | 1,042,970 | 35 | 14,937,947 | 35 | 1,080,213 | 16,018,125 | 9,717,578 |
CONSOLIDATEDCHANGE IN INTANGIBLE ASSETS
ASOF DECEMBER 31, 2021
(Translation of the Financial statements originally issued in Spanish – See Note 44)
(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of March 31, 2022, except as otherwise indicated)
| **** | Original<br><br> Value at | Useful life | **** | **** | **** | **** | Depreciation<br> for the fiscal year | Residual<br><br> value at the | |||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Item | beginning of fiscal year | estimated in years | Increases | Decreases | Transfers | **** | Accumulated | Transfers | **** | Decrease | For the fiscal year | At the end | end of the fiscal year |
| Cost | |||||||||||||
| Licenses | 4,817,026 | 5 | 1,010,312 | (11,693 | ) | 2,498,870 | (393 | ) | 1,059,065 | 3,557,542 | 2,258,103 | ||
| Other<br> intangible assets | 15,119,477 | 5 | 3,757,754 | 108 | 8,495,447 | 25 | 2,884,983 | 11,380,405 | 7,496,718 | ||||
| Total<br> intangible assets | 19,936,503 | 4,768,066 | 108 | (11,693 | ) | 10,994,317 | (393 | ) | 25 | 3,944,048 | 14,937,947 | 9,754,821 |
| - 66 - | Delfín Jorge Ezequiel Carballo<br> Chairperson |
| --- | --- |
EXHIBIT H
CONSOLIDATEDDEPOSIT CONCENTRATION
ASOF MARCH 31, 2022 AND DECEMBER 31, 2021
(Translation of the Financial statements originally issued in Spanish – See Note 44)
(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of March 31, 2022, except as otherwise indicated)
| 03/31/2022 | 12/31/2021 | |||
|---|---|---|---|---|
| Number of customers | Outstanding balance | % of total portfolio | Outstanding balance | % of total portfolio |
| 10 largest customers | 69,540,133 | 10.26 | 53,212,284 | 7.79 |
| 50 next largest customers | 49,430,336 | 7.30 | 40,997,534 | 6.00 |
| 100 next largest customers | 27,320,640 | 4.03 | 26,046,687 | 3.81 |
| Other customers | 531,253,621 | 78.41 | 563,220,665 | 82.40 |
| Total | 677,544,730 | 100.00 | 683,477,170 | 100.00 |
| - 67 - | Delfín Jorge Ezequiel Carballo<br> Chairperson |
| --- | --- |
EXHIBIT I
CONSOLIDATEDBREAKDOWN OF FINANCIAL LIABILITIES
FORRESIDUAL TERMS
ASOF MARCH 31, 2022
(Translation of the Financial statements originally issued in Spanish – See Note 44)
(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of March 31, 2022, except as otherwise indicated)
| Remaining terms to maturity | |||||||
|---|---|---|---|---|---|---|---|
| Item | Up to 1 month | Over 1 month and up to 3 months | Over 3 months and up to 6 months | Over 6 months and up to 12 months | Over 12 months and up to 24 months | Over 24 months | Total |
| Deposits | 599,156,000 | 76,033,205 | 8,553,226 | 914,962 | 39,977 | 3,333 | 684,700,703 |
| From the<br> non-financial government sector | 65,582,694 | 13,592,929 | 578,366 | 3,601 | 79,757,590 | ||
| From the<br> financial sector | 1,033,773 | 1,033,773 | |||||
| From<br> the non-financial private sector and foreign residents | 532,539,533 | 62,440,276 | 7,974,860 | 911,361 | 39,977 | 3,333 | 603,909,340 |
| Liabilities at fair value<br> through profit or loss | 461,253 | 461,253 | |||||
| Derivative instruments | 7,317 | 136 | 7,453 | ||||
| Repo transactions | 11,853,813 | 11,853,813 | |||||
| Other financial institutions | 11,853,813 | 11,853,813 | |||||
| Other Financial Liabilities | 58,219,610 | 200,920 | 163,938 | 281,473 | 388,306 | 487,647 | 59,741,894 |
| Financing received from<br> the Central Bank of Argentina and other financial institutions | 1,977,712 | 16,880 | 8,086 | 7,501 | 2,169 | 2,012,348 | |
| Issued corporate bonds | 3,141,995 | 3,141,995 | |||||
| Subordinated<br> corporate bonds | 1,473,022 | 1,473,022 | 2,946,042 | 53,186,203 | 59,078,289 | ||
| Total | 671,675,705 | 80,866,158 | 8,725,250 | 2,676,958 | 3,376,494 | 53,677,183 | 820,997,748 |
This exhibit discloses contractual future cash flows that include interests and charges to be accrued until maturity of the contracts.
| - 68 - | Delfín Jorge Ezequiel Carballo<br> Chairperson |
| --- | --- |
EXHIBIT I
CONSOLIDATED BREAKDOWN OF FINANCIAL LIABILITIES
FOR RESIDUAL TERMS
AS OF DECEMBER 31, 2021
(Translation of the Financial statements originally issued in Spanish – See Note 44)
(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of March 31, 2022, except as otherwise indicated)
| Remaining terms to maturity | |||||||
|---|---|---|---|---|---|---|---|
| Item | Up to 1 month | Over 1 month and up to 3 months | Over 3 months and up to 6 months | Over 6 months and up to 12 months | Over 12 months and up to 24 months | Over 24 months | Total |
| Deposits | 620,290,962 | 60,647,061 | 7,477,046 | 638,498 | 50,220 | 1,467 | 689,105,254 |
| From the non-financial government<br> sector | 62,044,536 | 2,452,599 | 1,373,403 | 3,025 | 65,873,563 | ||
| From the financial sector | 1,115,653 | 1,115,653 | |||||
| From the non-financial private<br> sector and foreign residents | 557,130,773 | 58,194,462 | 6,103,643 | 635,473 | 50,220 | 1,467 | 622,116,038 |
| Liabilities at fair value<br> through profit or loss | 1,889,304 | 1,889,304 | |||||
| Derivative instruments | 2,939 | 2,939 | |||||
| Other Financial Liabilities | 77,153,428 | 204,971 | 183,584 | 299,467 | 438,609 | 577,623 | 78,857,682 |
| Financing received from<br> the Central Bank of Argentina and other financial institutions | 273,121 | 212,352 | 15,691 | 9,655 | 6,644 | 517,463 | |
| Issued corporate bonds | 3,646,904 | 3,646,904 | |||||
| Subordinated corporate bonds | 1,583,293 | 1,583,294 | 3,166,588 | 57,167,795 | 63,500,970 | ||
| Total | 699,606,815 | 61,064,384 | 12,909,457 | 2,530,914 | 3,662,061 | 57,746,885 | 837,520,516 |
This exhibit discloses contractual future cash flows that include interests and charges to be accrued until maturity of the contracts.
| - 69 - | Delfín Jorge Ezequiel Carballo<br> Chairperson |
| --- | --- |
EXHIBIT J
CONSOLIDATED CHANGES IN PROVISIONS
AS OF MARCH 31, 2022
(Translation of the Financial statements originally issued in Spanish – See Note 44)
(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of March 31, 2022, except as otherwise indicated)
| **** | Amounts at****beginning of fiscal | **** | Decreases | Monetary effects****generated by | **** | **** | |
|---|---|---|---|---|---|---|---|
| Item | year | Increases **** | Reversals **** | Charge off **** | provisions | **** | 03/31/2022 **** |
| Provisions for eventual<br> commitments | 395,918 | 107,617 | (62,214 | ) | 441,321 | ||
| For Administrative, disciplinary<br> and criminal penalties | 580 | (80 | ) | 500 | |||
| Other | 1,508,873 | 320,244 | 42,205 | (226,706 | ) | 1,560,206 | |
| Total<br> Provisions | 1,905,371 | 427,861 | 42,205 | (289,000 | ) | 2,002,027 |
CONSOLIDATED CHANGES IN PROVISIONS
AS OF DECEMBER 31, 2021
(Translation of the Financial statements originally issued in Spanish – See Note 44)
(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of March 31, 2022, except as otherwise indicated)
| **** | Amounts at****beginning of fiscal | **** | Decreases | Monetary effects****generated by | **** | ||
|---|---|---|---|---|---|---|---|
| Item | year | Increases **** | Reversals **** | Charge off **** | provisions | **** | 12/31/2021 |
| Provisions for eventual<br> commitments | 30,146 | 429,161 | 1,475 | (61,914 | ) | 395,918 | |
| For Administrative, disciplinary<br> and criminal penalties | 1,258 | 48,321 | 292 | 48,257 | (450 | ) | 580 |
| Other | 2,254,088 | 1,690,235 | 1,742,079 | (693,371 | ) | 1,508,873 | |
| Total<br> Provisions | 2,285,492 | 2,167,717 | 292 | 1,791,811 | (755,735 | ) | 1,905,371 |
| - 70 - | Delfín Jorge Ezequiel Carballo<br> Chairperson |
| --- | --- |
EXHIBIT L
CONSOLIDATED FOREIGN CURRENCY AMOUNTS
AS OF MARCH 31, 2022 AND DECEMBER 31, 2021
(Translation of the Financial statements originally issued in Spanish – See Note 44)
(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of March 31, 2022, except as otherwise indicated)
| 03/31/2022 | 12/31/2021 | |||||
|---|---|---|---|---|---|---|
| **** | Total parent company and | Total per currency | **** | |||
| Item | local branches | US dollar | Euro | Real | Other | Total |
| Assets | ||||||
| Cash and deposits<br> in banks | 130,774,299 | 130,021,988 | 461,573 | 28,173 | 262,565 | 141,639,436 |
| Debt securities at fair value<br> through profit or loss | 2,153,469 | 2,153,469 | 1,432,226 | |||
| Other financial assets | 8,604,150 | 8,604,150 | 6,952,243 | |||
| Loans and other financing | 16,632,641 | 16,632,641 | 17,799,014 | |||
| From the<br> non-financial private sector and foreign residents | 16,632,641 | 16,632,641 | 17,799,014 | |||
| Other debt securities | 33,652,528 | 33,652,528 | 39,313,626 | |||
| Financial assets delivered as<br> guarantee | 2,492,696 | 2,485,321 | 7,375 | 2,665,905 | ||
| Equity Instruments<br> at fair value through profit or loss | 66,264 | 66,264 | 81,247 | |||
| Total<br> assets | 194,376,047 | 193,616,361 | 468,948 | 28,173 | 262,565 | 209,883,697 |
| Liabilities | ||||||
| Deposits | 101,902,219 | 101,901,715 | 504 | 112,126,697 | ||
| Non-financial<br> government sector | 7,689,313 | 7,689,313 | 8,910,072 | |||
| Financial<br> sector | 876,729 | 876,729 | 882,799 | |||
| Non-financial<br> private sector and foreign residents | 93,336,177 | 93,335,673 | 504 | 102,333,826 | ||
| Liabilities at fair value through<br> profit or loss | 461,253 | 461,253 | 146,609 | |||
| Other financial liabilities | 7,089,073 | 6,898,895 | 175,479 | 14,699 | 7,553,254 | |
| Financing from Central Bank and<br> other financial institutions | 160,593 | 160,593 | 321,143 | |||
| Subordinated corporate bonds | 46,028,349 | 46,028,349 | 48,719,287 | |||
| Other non-financial<br> liabilities | 26,349 | 26,349 | 46,932 | |||
| Total<br> liabilities | 155,667,836 | 155,477,154 | 175,983 | 14,699 | 168,913,922 |
| - 71 - | Delfín Jorge Ezequiel Carballo<br> Chairperson |
| --- | --- |
EXHIBIT Q
CONSOLIDATED BREAKDOWN OF STATEMENT OF INCOME
AS OF MARCH 31, 2022 AND 2021
(Translation of the Financial statements originally issued in Spanish – See Note 44)
(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of March 31, 2022, except as otherwise indicated)
| Net financial Income/ (Loss) | |||||
|---|---|---|---|---|---|
| Mandatory measurement | |||||
| Items | Quarter ended03/31/2022 | Quarter ended03/31/2021 | |||
| For measurement of financial assets at fair value through profit or loss | |||||
| Gain from government securities | 1,402,482 | 6,255,404 | |||
| Gain from private securities | 150,747 | 251,917 | |||
| Gain / (Loss) from other financial assets | 68,359 | (3,997 | ) | ||
| Gain from equity instruments at fair value through profit or loss (See Note 9) | 3,820,861 | 617,911 | |||
| Gain / (Loss) from sales or decreases of financial assets at fair value (1) | 1,006,023 | (46,018 | ) | ||
| Total | 6,448,472 | 7,075,217 | |||
| (1) | Net<br>amount of reclassifications to profit of instruments classified at fair value through other comprehensive income that were derecognized<br>or charged during the period. | ||||
| --- | --- |
| - 72 - | Delfín Jorge Ezequiel Carballo<br> Chairperson |
| --- | --- | | EXHIBIT Q | | --- | | (Continued) | | CONSOLIDATED BREAKDOWN OF STATEMENT OF INCOME | | --- | | AS OF MARCH 31, 2022 AND 2021 | | (Translation of the Financial statements originally issued in Spanish – See Note 44) | | (Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of March 31, 2022, except as otherwise indicated) | | | Net financial Income/(Loss) | | | | | | | --- | --- | --- | --- | --- | --- | --- | | Interest and adjustment for the application of the effective interest <br><br>rate of financial assets measured at amortized cost | Quarter ended <br><br>03/31/2022 | | | Quarter ended <br><br>03/31/2021 | | | | Interest income | | | | | | | | for cash and bank deposits | | 2,836 | | | 4,076 | | | for government securities | | 1,628,298 | | | 3,683,077 | | | for debt securities | | 25,125 | | | 160,044 | | | for loans and other financing | | | | | | | | Non-financial public sector | | 276,274 | | | 716,055 | | | Financial sector | | 92,140 | | | 260,615 | | | Non-financial private sector | | | | | | | | Overdrafts | | 2,534,049 | | | 2,631,817 | | | Documents | | 3,050,807 | | | 2,146,564 | | | Mortgage loans | | 4,674,518 | | | 4,736,694 | | | Pledge loans | | 518,273 | | | 171,620 | | | Personal loans | | 13,803,376 | | | 14,341,473 | | | Credit cards | | 5,080,978 | | | 4,210,690 | | | Financial leases | | 45,709 | | | 33,865 | | | Other | | 3,757,784 | | | 5,383,026 | | | for repo transactions | | | | | | | | Central Bank of Argentina | | 397,356 | | | 3,222,952 | | | Other financial institutions | | 34,836 | | | 22,373 | | | Total | | 35,922,359 | | | 41,724,941 | | | Interest expenses | | | | | | | | for deposits | | | | | | | | Non-financial private sector | | | | | | | | Checking accounts | | (430,670 | ) | | (1,127,033 | ) | | Saving accounts | | (393,055 | ) | | (357,810 | ) | | Time deposits and investments accounts | | (24,951,000 | ) | | (29,763,182 | ) | | for financing received from Central Bank of Argentina and other financial institutions | | (44,526 | ) | | (67,594 | ) | | for repo transactions | | | | | | | | Other financial institutions | | (217,126 | ) | | (84,560 | ) | | for other financial liabilities | | (62,424 | ) | | (8,328 | ) | | for issued corporate bonds | | (111,772 | ) | | (546,456 | ) | | for other subordinated corporate bonds | | (726,240 | ) | | (1,030,655 | ) | | Total | | (26,936,813 | ) | | (32,985,618 | ) |
| - 73 - | Delfín Jorge Ezequiel Carballo<br> Chairperson |
| --- | --- | | | EXHIBIT Q | | --- | --- | | | (Continued) | | CONSOLIDATED BREAKDOWN OF STATEMENT OF INCOME | | | AS OF MARCH 31, 2022 AND 2021 | | | (Translation of the Financial statements originally issued in Spanish – See Note 44) | | | (Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of March 31, 2022, except as otherwise indicated) | | | Interest and adjustment for theapplication of the effective interest rateof financial assets measured at fair | Income of the<br><br>period | | Other<br><br>comprehensive<br><br>income | | | Income of the<br><br>period | | Other<br><br>comprehensive<br><br>income | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | value through other comprehensive<br><br>income | Quarter ended <br><br>03/31/2022 | | Quarter ended <br><br>03/31/2022 | | | Quarter ended <br><br>03/31/2021 | | Quarter ended<br><br> 03/31/2021 | | | for debt government securities | | 32,925,160 | | (1,621,464 | ) | | 28,221,165 | | 491,991 | | Total | | 32,925,160 | | (1,621,464 | ) | | 28,221,165 | | 491,991 | | | Income of the period | | | | | | | --- | --- | --- | --- | --- | --- | --- | | Items | Quarter ended<br><br> 03/31/2022 | | | Quarter ended<br><br> 03/31/2021 | | | | Commissions income | | | | | | | | Commissions related to obligations | | 6,298,044 | | | 5,420,266 | | | Commissions related to credits | | 46,488 | | | 34,707 | | | Commissions related to loans commitments and financial guarantees | | 563 | | | 299 | | | Commissions related to securities value | | 214,309 | | | 199,919 | | | Commissions for credit cards | | 3,808,748 | | | 3,556,597 | | | Commissions for insurances | | 653,161 | | | 668,559 | | | Commissions related to trading and foreign exchange transactions | | 251,288 | | | 245,603 | | | Total | | 11,272,601 | | | 10,125,950 | | | Commissions expenses | | | | | | | | Commissions related to trading with debt securities | | (1,742 | ) | | | | | Commissions related to trading and foreign exchange transactions | | (35,931 | ) | | (18,203 | ) | | Other | | | | | | | | Commissions paid ATM exchange | | (721,243 | ) | | (642,158 | ) | | Checkbooks commissions and clearing houses | | (187,739 | ) | | (168,568 | ) | | Credit cards and foreign trade commissions | | (110,550 | ) | | (101,596 | ) | | Total | | (1,057,205 | ) | | (930,525 | ) |
| - 74 - | Delfín Jorge Ezequiel Carballo<br> Chairperson |
| --- | --- | | | EXHIBIT R | | --- | --- | | VALUE ADJUSTMENT FOR CREDIT LOSSES - CONSOLIDATED ALLOWANCES FOR UNCOLLECTIBILITY RISK AS OF MARCH 31, 2022 | | | (Translation of the Financial statements originally issued in Spanish – See Note 44) | | | (Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of March 31, 2022, except as otherwise indicated) | | | | | | Movements<br> between stages of period | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | ECL<br> of remanent life of financial asset | | | | | | | | | | | | Item | Balances<br> at <br> beginning of<br><br>the<br> fiscal year | | ECL<br> of the next<br><br> 12 months | | | Financial<br><br>instruments with a<br><br>significant increase<br><br>in credit risk | | | Financial<br><br>instruments<br><br> with<br><br>impairment | | | Monetary<br> effect <br><br>generated by<br><br> provisions | | | 03/31/2022 | | | Other financial assets | | 30,698 | | 15,037 | | | | | | | | | (5,093 | ) | | 40,642 | | Loans and other financing | | 11,179,097 | | (24,903 | ) | | (857,077 | ) | | 1,150,669 | | | (1,562,791 | ) | | 9,884,995 | | Other<br> financial institutions | | 4,238 | | (731 | ) | | | | | | | | (546 | ) | | 2,961 | | To the<br> non-financial private sector and foreign residents | | | | | | | | | | | | | | | | | | Overdrafts | | 822,175 | | 57,974 | | | (7,071 | ) | | (60,977 | ) | | (113,264 | ) | | 698,837 | | Documents | | 1,116,118 | | (71,141 | ) | | 6,746 | | | (292 | ) | | (150,902 | ) | | 900,529 | | Mortgage<br> loans | | 2,319,280 | | (32,785 | ) | | (956,516 | ) | | 1,016,422 | | | (322,621 | ) | | 2,023,780 | | Pledge<br> loans | | 143,409 | | (422 | ) | | (1,529 | ) | | (2,118 | ) | | (19,626 | ) | | 119,714 | | Personal<br> loans | | 2,879,183 | | 84,539 | | | 25,741 | | | 202,696 | | | (416,156 | ) | | 2,776,003 | | Credit<br> cards | | 1,874,819 | | 110,657 | | | 60,403 | | | 74,596 | | | (273,333 | ) | | 1,847,142 | | Financial<br> leases | | 16,968 | | 4,848 | | | 20 | | | (1,819 | ) | | (2,520 | ) | | 17,497 | | Other | | 2,002,907 | | (177,842 | ) | | 15,129 | | | (77,839 | ) | | (263,823 | ) | | 1,498,532 | | Eventual commitments | | 395,918 | | 96,012 | | | 10,154 | | | | | | (60,763 | ) | | 441,321 | | Other debt securities | | 630 | | 77 | | | | | | | | | (91 | ) | | 616 | | Total of allowances | | 11,606,343 | | 86,223 | | | (846,923 | ) | | 1,150,669 | | | (1,628,738 | ) | | 10,367,574 | | VALUE ADJUSTMENTFOR CREDIT LOSSES - CONSOLIDATED ALLOWANCES FOR UNCOLLECTIBILITY RISK AS OF DECEMBER 31, 2021 | | --- | | (Translation of the Financial statements originally issued in Spanish – See Note 44) | | (Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of March 31, 2022, except as otherwise indicated) | | | | | Movements<br> between stages for the fiscal year | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | ECL<br> of remanent life of financial asset | | | | | | | | | | | | Item | Balances<br> at <br> beginning of<br><br>the<br> fiscal year | | ECL<br> of the next<br><br> 12 months | | | Financial<br><br>instruments with a<br><br>significant increase<br><br>in credit risk | | | Financial<br><br>instruments <br><br>with<br><br>impairment | | | Monetary<br> effect<br><br> generated by <br><br>provisions | | | 12/31/2021 | | | Other financial assets | | 33,159 | | 10,185 | | | | | | | | | (12,646 | ) | | 30,698 | | Loans and other financing | | 17,559,350 | | (2,827,057 | ) | | 588,741 | | | 1,657,919 | | | (5,799,856 | ) | | 11,179,097 | | Other financial institutions | | 29,104 | | (18,067 | ) | | | | | | | | (6,799 | ) | | 4,238 | | To the non-financial private<br> sector and foreign residents | | | | | | | | | | | | | | | | | | Overdrafts | | 1,201,390 | | 141,510 | | | 79,480 | | | (303,267 | ) | | (296,938 | ) | | 822,175 | | Documents | | 936,644 | | 303,645 | | | 208,976 | | | 8,477 | | | (341,624 | ) | | 1,116,118 | | Mortgage<br> loans | | 1,319,149 | | 57,582 | | | 1,249,949 | | | 210,749 | | | (518,149 | ) | | 2,319,280 | | Pledge<br> loans | | 235,371 | | (3,274 | ) | | (46,209 | ) | | 39,897 | | | (82,376 | ) | | 143,409 | | Personal<br> loans | | 4,985,660 | | (959,482 | ) | | (386,404 | ) | | 1,257,768 | | | (2,018,359 | ) | | 2,879,183 | | Credit<br> cards | | 5,937,202 | | (2,055,304 | ) | | (905,055 | ) | | 524,073 | | | (1,626,097 | ) | | 1,874,819 | | Financial<br> leases | | 17,603 | | 11,818 | | | (5 | ) | | (7,491 | ) | | (4,957 | ) | | 16,968 | | Other | | 2,897,227 | | (305,485 | ) | | 388,009 | | | (72,287 | ) | | (904,557 | ) | | 2,002,907 | | Eventual commitments | | 30,146 | | 367,557 | | | 52,869 | | | | | | (54,654 | ) | | 395,918 | | Other debts securities | | 2,353 | | (1,256 | ) | | | | | | | | (467 | ) | | 630 | | Total of allowances | | 17,625,008 | | (2,450,571 | ) | | 641,610 | | | 1,657,919 | | | (5,867,623 | ) | | 11,606,343 |
| - 75 - | Delfín Jorge Ezequiel Carballo<br> Chairperson |
| --- | --- | | CONDENSED SEPARATE INTERIM STATEMENT OF FINANCIAL POSITION | | --- | | AS OF MARCH 31, 2022 AND DECEMBER 31, 2021 | | (Translation of the Financial statements originally issued in Spanish – See Note 41) | | (Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of March 31, 2022, except as otherwise indicated) | | Items | Notes | Exhibits | 03/31/2022 | | 12/31/2021 | | | --- | --- | --- | --- | --- | --- | --- | | ASSETS | | | | | | | | Cash and Deposits in Banks | 8 | | | 170,020,311 | | 194,798,213 | | Cash | | | | 32,104,255 | | 30,901,946 | | Central Bank of Argentina | | | | 96,476,179 | | 123,778,001 | | Other Local and Foreign Entities | | | | 41,377,007 | | 40,110,807 | | Other | | | | 62,870 | | 7,459 | | Debt Securities at fair value through profit or loss | 8 | A | | 27,204,154 | | 32,844,118 | | Derivative Financial Instruments | 8 | | | | | 1,504 | | Repo transactions | 8 | | | | | 36,452,615 | | Other Financial Assets | 5, 6 and 8 | R | | 13,674,645 | | 29,365,791 | | Loans and other financing | 6 and 8 | B, C, D and R | | 375,447,821 | | 410,752,790 | | Non-financial Public Sector | | | | 2,090,128 | | 2,757,828 | | Other Financial Entities | | | | 708,874 | | 1,752,948 | | Non-financial Private Sector and Foreign Residents | | | | 372,648,819 | | 406,242,014 | | Other Debt Securities | 6 and 8 | A and R | | 419,135,528 | | 326,659,328 | | Financial Assets delivered as guarantee | 8 and 28 | | | 31,749,649 | | 20,539,787 | | Current Income Tax Assets | 18 | | | 197,230 | | 630,768 | | Equity Instruments at fair value through profit or loss | 7 and 8 | A | | 425,507 | | 2,465,857 | | Investment in subsidiaries, associates and joint arrangements | 10 | | | 8,891,662 | | 8,645,306 | | Property, plant and equipment | | F | | 60,864,694 | | 61,313,865 | | Intangible Assets | | G | | 9,681,690 | | 9,725,773 | | Other Non-financial Assets | 11 | | | 2,729,639 | | 2,147,986 | | Non-current Assets held for sale | | | | 3,748,015 | | 3,762,423 | | TOTAL ASSETS | | | | 1,123,770,545 | | 1,140,106,124 |
| - 76 - | Delfín Jorge Ezequiel Carballo<br> Chairperson |
| --- | --- | | CONDENSED SEPARATE INTERIM STATEMENT OF FINANCIAL POSITION | | --- | | AS OF MARCH 31, 2022 AND DECEMBER 31, 2021 | | (Translation of the Financial statements originally issued in Spanish – See Note 41) | | (Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of March 31, 2022, except as otherwise indicated) | | Items | Notes | Exhibits | 03/31/2022 | | 12/31/2021 | | | | --- | --- | --- | --- | --- | --- | --- | --- | | LIABILITIES | | | | | | | | | Deposits | 8 | H and I | | 673,797,903 | | 679,079,386 | | | Non-financial Public Sector | | | | 78,854,292 | | 65,466,238 | | | Financial Sector | | | | 1,033,773 | | 1,115,653 | | | Non-financial Private Sector and Foreign Residents | | | | 593,909,838 | | 612,497,495 | | | Derivative Financial Instruments | 8 | I | | 7,453 | | 2,939 | | | Repo Transactions | 8 | I | | 11,853,813 | | | | | Other Financial Liabilities | 8 and 13 | I | | 48,302,204 | | 68,508,718 | | | Financing received from the Central Bank of Argentina and other financial institutions | 8 | I | | 2,008,050 | | 507,750 | | | Issued Corporate Bonds | 8 and 33 | I | | 3,096,173 | | 3,471,423 | | | Subordinated Corporate Bonds | 8 and 33 | I | | 46,085,956 | | 48,768,055 | | | Provisions | 14 | J and R | | 1,990,967 | | 1,895,899 | | | Deferred Income Tax Liabilities | | | | 7,543,727 | | 6,606,742 | | | Other Non-financial Liabilities | 15 | | | 46,756,312 | | 54,359,472 | | | TOTAL LIABILITIES | | | | 841,442,558 | | 863,200,384 | | | SHAREHOLDERS’ EQUITY | | | | | | | | | Capital Stock | 26 | K | | 639,413 | | 639,413 | | | Non-capital contributions | | | | 12,429,781 | | 12,429,781 | | | Adjustments to Shareholders’ Equity | | | | 97,975,071 | | 97,975,071 | | | Earnings Reserved | | | | 141,403,232 | | 141,403,232 | | | Unappropriated Retained Earnings | | | | 21,127,200 | | (10,353,793 | ) | | Accumulated Other Comprehensive Income | | | | 2,733,587 | | 3,331,043 | | | Net Income of the period / fiscal year | | | | 6,019,703 | | 31,480,993 | | | TOTAL SHAREHOLDERS’ EQUITY | | | | 282,327,987 | | 276,905,740 | | | TOTAL SHAREHOLDERS’ EQUITY AND LIABILITIES | | | | 1,123,770,545 | | 1,140,106,124 | |
The notes 1 to 41 to the condensed separate interim financial statements and exhibits A to D, F to L, O, Q and R are an integral part of the condensed separate interim financial statements.
| - 77 - | Delfín Jorge Ezequiel Carballo<br> Chairperson |
| --- | --- | | CONDENSED SEPARATE STATEMENT OF INCOME | | --- | | FOR THE THREE MONTH PERIODS ENDED MARCH 31, 2022 AND 2021 | | (Translation of the Financial statements originally issued in Spanish – See Note 41) | | (Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of March 31, 2022, except as otherwise indicated) | | Items | Notes | Exhibits | Quarter ended <br><br>03/31/2022 | | | Quarter ended<br><br> 03/31/2021 | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | Interest income | | Q | | 68,730,192 | | | 69,872,442 | | | Interest expense | | Q | | (26,876,305 | ) | | (32,988,666 | ) | | Net Interest income | | | | 41,853,887 | | | 36,883,776 | | | Commissions income | 19 | Q | | 11,129,836 | | | 9,993,280 | | | Commissions expense | | Q | | (875,688 | ) | | (862,075 | ) | | Net Commissions income | | | | 10,254,148 | | | 9,131,205 | | | Subtotal (Net Interest income + Net Commissions income) | | | | 52,108,035 | | | 46,014,981 | | | Profit from measurement of financial instruments at fair value through profit or loss | | Q | | 5,733,836 | | | 6,989,559 | | | Profit from sold or derecognized assets at amortized cost | | | | | | | 92,480 | | | Differences in quoted prices of gold and foreign currency | 20 | | | 3,127,110 | | | 1,777,101 | | | Other operating income | 21 | | | 2,528,565 | | | 2,097,799 | | | Allowances for loan losses | | | | (744,745 | ) | | | | | Net Operating Income | | | | 62,752,801 | | | 56,971,920 | | | Employee benefits | 22 | | | (9,598,169 | ) | | (11,066,107 | ) | | Administrative expenses | 23 | | | (5,398,210 | ) | | (5,218,914 | ) | | Depreciation and amortization of fixed assets | | F and G | | (2,160,294 | ) | | (1,987,614 | ) | | Other Operating Expenses | 24 | | | (10,052,631 | ) | | (9,790,881 | ) | | Operating Income | | | | 35,543,497 | | | 28,908,404 | | | Income from subsidiaries, associates and joint arrangements | | | | 412,747 | | | 190,599 | | | Loss on net monetary position | | | | (28,625,457 | ) | | (22,216,647 | ) | | Income before tax on continuing operations | | | | 7,330,787 | | | 6,882,356 | | | Income tax on continuing operations | 18.b) | | | (1,311,084 | ) | | (3,489,620 | ) | | Net Income from continuing operations | | | | 6,019,703 | | | 3,392,736 | | | Net Income of the period | | | | 6,019,703 | | | 3,392,736 | |
| - 78 - | Delfín Jorge Ezequiel Carballo<br> Chairperson |
| --- | --- | | SEPARATE EARNINGS PER SHARE | | --- | | FOR THE THREE MONTH PERIODS ENDED MARCH 31, 2022 AND 2021 | | (Translation of the Financial statements originally issued in Spanish – See Note 41) | | (Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of March 31, 2022, except as otherwise indicated) | | Items | Quarter ended <br><br>03/31/2022 | | Quarter ended <br><br>03/31/2021 | | | --- | --- | --- | --- | --- | | Net Profit attributable to Parent’s shareholders | | 6,019,703 | | 3,392,736 | | Plus: Potential diluted earnings per common share | | | | | | Net Profit attributable to Parent’s shareholders adjusted as per diluted earnings | | 6,019,703 | | 3,392,736 | | Weighted average of outstanding common shares of the period | | 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 | | Basic earnings per share (in pesos) | | 9.4144 | | 5.3060 |
| - 79 - | Delfín Jorge Ezequiel Carballo<br> Chairperson |
| --- | --- | | CONDENSED SEPARATE INTERIM STATEMENT OF OTHER COMPREHENSIVE INCOME | | --- | | FOR THE THREE MONTH PERIODS ENDED MARCH 31, 2022 AND 2021 | | (Translation of the Financial statements originally issued in Spanish – See Note 41) | | (Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of March 31, 2022, except as otherwise indicated) | | Items | Notes | Exhibits | Quarter ended <br><br>03/31/2022 | | | Quarter ended<br><br> 03/31/2021 | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | Net Income of the period | | | | 6,019,703 | | | 3,392,736 | | | Items of Other Comprehensive Income that will be reclassified to profit or loss | | | | | | | | | | Foreign currency translation differences in financial statements conversion | | | | (258,116 | ) | | (149,985 | ) | | Foreign currency translation differences of the period | | | | (258,116 | ) | | (149,985 | ) | | Profit or loss for financial instruments measured at fair value through OCI (IFRS 9(4.1.2)(a)) | | | | (310,966 | ) | | 1,214,612 | | | Profit or loss for the period from financial instruments at fair value through other comprehensive income (FVOCI) | | Q | | (1,593,090 | ) | | 644,897 | | | Adjustment for reclassification of period | | | | 1,114,680 | | | 990,379 | | | Income tax | 18.b) | | | 167,444 | | | (420,664 | ) | | Interest in Other Comprehensive Income of associates and joint ventures accounted for using the participation method | | | | (28,374 | ) | | (152,747 | ) | | Loss for the period from interest in Other Comprehensive Income of associates and joint ventures accounted for using the participation method | | | | (28,374 | ) | | (152,747 | ) | | Total Other Comprehensive (Loss) / Income that is subsequently reclassified to profit or loss | | | | (597,456 | ) | | 911,880 | | | Total Other Comprehensive (Loss) / Income | | | | (597,456 | ) | | 911,880 | | | Total Comprehensive Income | | | | 5,422,247 | | | 4,304,616 | |
The notes 1 to 41 to the condensed separate interim financial statements and exhibits A to D, F to L, O, Q and R are an integral part of the condensed separate interim financial statements.
| - 80 - | Delfín Jorge Ezequiel Carballo<br> Chairperson |
| --- | --- |
CONDENSED SEPARATE INTERIM STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY
FOR THE THREE MONTH PERIOD ENDED MARCH 31, 2022
(Translation of the Financial statements originally issued in Spanish – See Note 41)
(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of March 31, 2022, except as otherwise indicated)
| **** | **** | Capital stock | Non-capital Contributions | **** | Other Comprehensive Income | Earnings Reserved | **** | **** | **** | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Changes | Notes | Outstanding shares | Additional paid-in capital | Adjustments<br> <br>toShareholders’<br> <br>Equity | Accumulated foreign currency translation difference in financial statements conversion | **** | Other | **** | Legal | Other | Unappropriated Retained Earnings | Total Equity | **** | |||||||||
| Restated amount at the beginning of the fiscal year | 639,413 | 12,429,781 | 97,975,071 | 696,593 | 2,634,450 | 56,222,032 | 85,181,200 | 21,127,200 | 276,905,740 | |||||||||||||
| Total comprehensive income of the period | ||||||||||||||||||||||
| - Net income of the period | 6,019,703 | 6,019,703 | ||||||||||||||||||||
| - Other comprehensive loss of the period | (258,116 | ) | (339,340 | ) | (597,456 | ) | ||||||||||||||||
| Amount at the end of the period | 639,413 | 12,429,781 | 97,975,071 | 438,477 | 2,295,110 | 56,222,032 | 85,181,200 | 27,146,903 | 282,327,987 |
CONDENSED SEPARATE INTERIM STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY
FOR THE THREE MONTH PERIOD ENDED MARCH 31, 2021
(Translation of the Financial statements originally issued in Spanish – See Note 41)
(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of March 31, 2022, except as otherwise indicated)
| Capital stock | Non-capital Contributions | Other Comprehensive Income | Earnings Reserved | |||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Changes | Notes | Outstandingshares | Additionalpaid-incapital | Adjustments<br><br> <br>toShareholders’<br><br> <br>Equity | Accumulatedforeigncurrencytranslationdifference infinancialstatementsconversion | Other | Legal | Other | UnappropriatedRetainedEarnings | Total Equity | ||||||||||||
| Restated<br> amount at the beginning of the fiscal year | 639,413 | 12,429,781 | 97,975,071 | 1,586,075 | 382,672 | 56,222,032 | 136,173,707 | (45,978,192 | ) | 259,430,559 | ||||||||||||
| Total<br> comprehensive income of the period | ||||||||||||||||||||||
| -<br> Net income of the period | 3,392,736 | 3,392,736 | ||||||||||||||||||||
| -<br> Other comprehensive income of the period | (149,985 | ) | 1,061,865 | 911,880 | ||||||||||||||||||
| Amount at the end of the period | 639,413 | 12,429,781 | 97,975,071 | 1,436,090 | 1,444,537 | 56,222,032 | 136,173,707 | (42,585,456 | ) | 263,735,175 |
The notes 1 to 41 to the condensed separate interim financial statements and exhibits A to D, F to L, O, Q and R are an integral part of the condensed separate interim financial statements.
| - 81 - | Delfín Jorge Ezequiel Carballo<br> Chairperson |
| --- | --- |
CONDENSED SEPARATE INTERIM STATEMENT OF CASH FLOWS
FOR THE THREE MONTH PERIODS ENDED MARCH 31, 2022 AND 2021
(Translation of the Financial statements originally issued in Spanish – See Note 41)
(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of March 31, 2022, except as otherwise indicated)
| Items | Notes | 03/31/2022 | 03/31/2021 | ||||
|---|---|---|---|---|---|---|---|
| Cash flows from operating activities | |||||||
| Income of the period before Income Tax | 7,330,787 | 6,882,356 | |||||
| Adjustment for the total monetary effect of the period | 28,625,457 | 22,216,647 | |||||
| Adjustments to obtain cash flows from operating activities: | |||||||
| Amortization and depreciation | 2,160,294 | 1,987,614 | |||||
| Allowance for loan losses | 744,745 | ||||||
| Difference in quoted prices of foreign currency | (6,571,145 | ) | (8,645,090 | ) | |||
| Other adjustments | 12,892,305 | 18,357,229 | |||||
| Net increase / (decrease) from operating assets: | |||||||
| Debt Securities at fair value through profit or loss | 5,722,810 | 35,555,711 | |||||
| Derivative financial instruments | 1,504 | 12,670 | |||||
| Repo transactions | 36,452,615 | 50,417,119 | |||||
| Loans and other financing | |||||||
| Non-financial public sector | 667,700 | 1,230,464 | |||||
| Other financial entities | 1,044,074 | (936,613 | ) | ||||
| Non-financial private sector and foreign residents | 32,800,745 | 39,730,246 | |||||
| Other debt securities | (35,875,769 | ) | (3,787,401 | ) | |||
| Financial assets delivered as guarantee | (11,209,862 | ) | 3,729,707 | ||||
| Equity instruments at fair value through profit or loss | 2,040,350 | (276,155 | ) | ||||
| Other assets | 15,302,003 | 4,953,707 | |||||
| Net increase / (decrease) from operating liabilities: | |||||||
| Deposits | |||||||
| Non-financial public sector | 13,388,054 | (43,016,007 | ) | ||||
| Financial sector | (81,880 | ) | (144,172 | ) | |||
| Non-financial private sector and foreign residents | (18,587,657 | ) | (102,902,213 | ) | |||
| Liabilities at fair value through profit or loss | 68,684 | ||||||
| Derivative Financial Instruments | 4,514 | (393 | ) | ||||
| Repo transactions | 11,853,813 | (1,083,722 | ) | ||||
| Other liabilities | (23,360,933 | ) | (8,536,035 | ) | |||
| Income Tax Payments | (2,555,199 | ) | |||||
| Total cash from operating activities (A) | 75,413,208 | 13,190,470 |
| - 82 - | Delfín Jorge Ezequiel Carballo<br> Chairperson |
| --- | --- |
CONDENSED SEPARATE INTERIM STATEMENT OF CASH FLOWS
FOR THE THREE MONTH PERIODS ENDED MARCH 31, 2022 AND 2021
(Translation of the Financial statements originally issued in Spanish – See Note 41)
(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of March 31, 2022, except as otherwise indicated)
| Items | Notes | 03/31/2022 | 03/31/2021 | |||||
|---|---|---|---|---|---|---|---|---|
| Cash flows from investing activities | ||||||||
| Payments: | ||||||||
| Acquisition of PPE, intangible assets and other assets | (1,465,986 | ) | (1,949,538 | ) | ||||
| Total cash used in investing activities (B) | (1,465,986 | ) | (1,949,538 | ) | ||||
| Cash flows from financing activities | ||||||||
| Payments: | ||||||||
| Non-subordinated corporate bonds | (354,162 | ) | ||||||
| Other payments related to financing activities | (125,145 | ) | (218,424 | ) | ||||
| Collections / Incomes: | ||||||||
| Financing to local financial entities | 1,560,789 | 240,484 | ||||||
| Total cash used in financing activities (C) | 1,435,644 | (332,102 | ) | |||||
| Effect of exchange rate fluctuations (D) | 10,233,264 | 14,055,643 | ||||||
| Monetary effect on cash and cash equivalents (E) | (53,710,755 | ) | (50,983,038 | ) | ||||
| Net increase / (decrease) in cash and cash equivalents (A+B+C+D+E) | 31,905,375 | (26,018,565 | ) | |||||
| Restated Cash and cash equivalents at the beginning of the fiscal year | 25 | 349,142,589 | 426,032,981 | |||||
| Cash and cash equivalents at the end of the period | 25 | 381,047,964 | 400,014,416 |
The notes 1 to 41 to the condensed separate interim financial statements and exhibits A to D, F to L, O, Q and R are an integral part of the condensed separate interim financial statements.
| - 83 - | Delfín Jorge Ezequiel Carballo<br> Chairperson |
| --- | --- |
NOTES TO THE CONDENSED SEPARATE INTERIM FINANCIALSTATEMENTS
AS OF MARCH 31, 2022
(Translation of Financial statements originally issued in Spanish – See Note 41)
(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of March 31, 2022, except as otherwise indicated)
| 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, Argenpay SAU and Fintech SGR.
Macro Compañía Financiera SA was created in 1977 as a non-banking financial institution. In May 1988, it received the authorization to operate as a commercial bank and was incorporated as Banco Macro SA. Subsequently, as a result of the merger process with other entities, it adopted other names (among them, Banco Macro Bansud SA) and since August 2006, Banco Macro SA.
The Bank’s shares are publicly listed on Bolsas y Mercados Argentinos (BYMA) since November 1994 and as from March 24, 2006, they are listed on the New York Stock Exchange (NYSE). Additionally, on October 15, 2015 they were authorized to be listed on the Mercado Abierto Electrónico SA (MAE).
Since 1994, Banco Macro SA’s market strategy 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). On January 17, 2022, the Bank made a new irrevocable capital contribution in Play Digital SA for 130,758 (not restated). 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 increase up to 24.99% the Bank’s interest in the capital stock of Fintech SGR. As it was explained in note 3 under “Basis for consolidation” to the consolidated financial statements as of December 31, 2021, already issued, Fintech SGR is a structured entity in which the Bank has control. See note 1 to the condensed consolidated interim financial statements.
Additionally, on October 1, 2021, the Bank paid 50,850 (not restated) in order to purchase shares representing 50% of the capital stock and votes of Finova SA. See also note 1 to the condensed consolidated interim financial statements.
On May 23, 2022, 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 Municipal governments.
| - 84 - |
| --- |
NOTES TO THE CONDENSED SEPARATE INTERIM FINANCIALSTATEMENTS
AS OF MARCH 31, 2022
(Translation of Financial statements originally issued in Spanish – See Note 41)
(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of March 31, 2022, except as otherwise indicated)
| 3. | BASIS FOR THE PREPARATION OF THESE FINANCIAL STATEMENTS AND APPLICABLE ACCOUNTING STANDARDS |
|---|
Applicable Accounting Standards
These condensed separate interim financial statements of the Bank were prepared in accordance with the accounting framework established by the Central Bank of Argentina (BCRA, for its acronym in Spanish), in its Communiqué “A” 6114 as supplemented. Except for the exceptions established by the BCRA which are explained in the following paragraph, such framework is based on International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB) and adopted by the Argentine Federation of Professionals Councils in Economic Sciences (FACPCE, for its acronym in Spanish). The abovementioned international standards include the IFRS, the International Accounting Standards (IAS) and the interpretations developed by the IFRS Interpretations Committee (IFRIC) or former IFRIC (SIC).
The transitory exceptions and regulatory guidelines established by BCRA to the application of effective IFRS, that affect the preparation of these condensed separate interim financial statements are as follows:
| a) | According to Communiqué “A” 6114, as supplemented, and in the convergence process through<br>IFRS, the BCRA established that since fiscal years beginning on or after January 1, 2020, financial institutions defined as “Group<br>A” by BCRA rules, in which the Bank is included, begin to apply section 5.5 “Impairment” of the IFRS 9 “Financial<br>Instruments” (sections B5.5.1 to B5.5.55), except for the temporary exclusion for the debt securities of the non-financial public<br>sector established by BCRA Communiqué “A” 6847. As of the date of issuance of these condensed separate interim financial<br>statements, the Bank is in the process of quantifying the effect of the full application of the abovementioned standard. |
|---|---|
| b) | As of December 31, 2021 the Bank measured its holding in Prisma Medios de Pago SA (Prisma), according<br>to the Memorandums received from the BCRA on March 12 and 22, 2021, which established specifics guidelines related to the measurement<br>of such holding. Taking into account such guidelines, the Bank adjusted its fair value previously determined (see note 7). On March 2022,<br>the shares related to the abovementioned holding were transferred, recording the profit for this transaction in the quarter ended March 31,<br>2022. If, for the fair value measurement purpose before mentioned, IFRS had been applied, the profit or loss for the previous fiscal<br>years and for the period ended March 31, 2022, should have been modified. However, this situation does not generate differences in<br>the shareholders’ equity as of March 31, 2022. |
| --- | --- |
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” 7411. Generally, the BCRA does not allow the anticipated application of any IFRS, unless otherwise expressly stated.
Note 3 to the consolidated financial statements as of December 31, 2021, already issued, presents further detailed descriptions of the basis for the presentation of such financial statements and the main accounting policies used and the relevant information of the subsidiaries. All that is explained therein shall apply to these condensed separate interim financial statements, except for the goodwill generated by the business combination, as mentioned in note 9, which according to BCRA Communiqué “A” 6618, in the condensed separate interim financial statements, is included in the net investment of the subsidiary.
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.
- 85 -
NOTES TO THE CONDENSED SEPARATE INTERIM FINANCIALSTATEMENTS
AS OF MARCH 31, 2022
(Translation of Financial statements originally issued in Spanish – See Note 41)
(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of March 31, 2022, except as otherwise indicated)
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 profit and loss of the entity after the date of acquisition or creation.
Shares in profit and loss of subsidiaries and associates are recognized under “Income / (loss) from subsidiaries, associates and joint ventures” in the condensed separate interim statement of income. Ownership interest in other comprehensive income of subsidiaries is accounted for under “Income / (loss) for the period from interest in other comprehensive income of subsidiaries, associates and joint ventures accounted for using the participation method”, in the condensed separate statement of other comprehensive income.
Transcription into books
As of the date of issuance of these condensed separate interim financial statements, they are in process of being transcribed into the inventory book (“Libro Inventario”) of Banco Macro SA.
New standards adopted
New standards adopted are described in note 3 to the condensed consolidated interim financial statements.
New pronouncements
New pronouncements are described in note 3 to the condensed consolidated interim financial statements.
| 4. | CONTINGENT TRANSACTIONS |
|---|
In order to meet specific financial needs of customers, the Bank’s credit policy also includes, among others, the granting of guarantees, securities, bonds, letters of credit and documentary credits. The Bank is also exposed to overdrafts and unused agreed credits on credit cards of the Bank. Since they imply a contingent obligation for the Bank, they expose the Bank to credit risks other than those recognized in the statement of financial position and, therefore, they are an integral part of the total risk of the Bank.
As of March 31, 2022 and December 31, 2021, the Bank maintains the following maximum exposures to credit risk related to this type of transactions:
| Composition | 03/31/2022 | 12/31/2021 | ||||
|---|---|---|---|---|---|---|
| Undrawn commitments of credit cards and checking accounts | 300,634,489 | 257,577,973 | ||||
| Guarantees granted (1) | 1,895,029 | 2,159,870 | ||||
| Overdraft and unused agreed commitments (1) | 1,452,115 | 1,012,758 | ||||
| Subtotal | 303,981,633 | 260,750,601 | ||||
| Less: Allowance for Expected credit losses (ECL) | (430,261 | ) | (386,446 | ) | ||
| Total | 303,551,372 | 260,364,155 | ||||
| (1) | Includes transactions not covered by BCRA debtor classification standard. The Guarantees granted include<br>an amount of 19,958 and 30,285 as of March 31, 2022 and December 31, 2021, respectively. The Overdraft and unused agreed commitments<br>include an amount of 654,172 and 111,670 as of March 31, 2022 and December 31, 2021, 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 43 to the consolidated financial statements as of December 31, 2021, already issued.
- 86 -
NOTES TO THE CONDENSED SEPARATE INTERIM FINANCIALSTATEMENTS
AS OF MARCH 31, 2022
(Translation of Financial statements originally issued in Spanish – See Note 41)
(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of March 31, 2022, except as otherwise indicated)
| 5. | OTHER FINANCIAL ASSETS |
|---|
The composition of the other financial assets as of March 31, 2022 and December 31, 2021 is as follows:
| Composition | 03/31/2022 | 12/31/2021 | ||||
|---|---|---|---|---|---|---|
| Sundry debtors (see note 7) | 12,612,091 | 10,581,882 | ||||
| Receivables from spot sales of government securities pending settlement | 397,769 | 105,447 | ||||
| Receivables from spot sales of foreign currency pending settlement | 68,338 | 17,953,398 | ||||
| Private securities | 36,982 | 36,006 | ||||
| Other | 600,107 | 719,756 | ||||
| Subtotal | 13,715,287 | 29,396,489 | ||||
| Less: Allowances for ECL | (40,642 | ) | (30,698 | ) | ||
| Total | 13,674,645 | 29,365,791 |
Disclosures related to allowance for ECL are detailed in note 7 “Loss allowance for expected credit losses on credit exposures not measured at fair value through profit or loss”.
| 6. | LOSS ALLOWANCE FOR EXPECTED CREDIT LOSSES ON CREDIT EXPOSURES NOT MEASURED AT FAIR VALUE THROUGH PROFITOR LOSS |
|---|
Note 7 to the condensed consolidated interim financial statements, details the allowances recognized by the Bank under this concept.
In addition, exhibit R “Value adjustment for credit losses – Allowance for uncollectibility risk” also discloses the ECL movements by portfolio and products.
| 7. | 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 is detailed in Exhibit A. For the Bank’s investment in Prisma Medios de Pago SA. see also note 9 to the condensed consolidated interim financial statements.
| 8. | FAIR VALUE QUANTITATIVE AND QUALITATIVE DISCLOSURES |
|---|
Note 10 to the condensed consolidated interim financial statements describes the methods and assumptions used to determine the fair value, both of the financial instruments recognized at fair value as of those not accounted for at such fair value in these condensed separate interim financial statements. In addition, the Bank discloses the relevant information as to instruments included in Level 3 of the fair value hierarchy.
Even though the Bank’s Management has used its best judgment to estimate the fair values of its financial instruments, any technique to perform such estimate implies certain inherent fragility level.
Fair value hierarchy
The Bank uses the following hierarchy to determine and disclose the fair value of financial instruments, according to the valuation technique applied:
| - | Level 1: quoted prices (unadjusted) observable in active markets that the Bank accesses to at the measurement<br>day for identical assets or liabilities. The Bank considers markets as active only if there are sufficient trading activities with respect<br>to the volume and liquidity of the identical assets or liabilities and when there are binding and exercisable price quotes available at<br>each reporting period. |
|---|
- 87 -
NOTES TO THE CONDENSED SEPARATE INTERIM FINANCIALSTATEMENTS
AS OF MARCH 31, 2022
(Translation of Financial statements originally issued in Spanish – See Note 41)
(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of March 31, 2022, except as otherwise indicated)
| - | 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 March 31, 2022 and December 31, 2021:
| Financial assets and financial liabilities measured at fair value <br><br>on a recurring basis as of March 31, 2022 | ||||||||
|---|---|---|---|---|---|---|---|---|
| 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 | 27,204,154 | 25,851,920 | 1,352,234 | |||||
| Other financial assets | 36,982 | 36,982 | ||||||
| Equity instruments at fair value through profit or loss | 425,507 | 12,628 | 412,879 | |||||
| At fair value through OCI | ||||||||
| Other debt Securities | 390,699,480 | 219,924,759 | 170,774,721 | |||||
| Financial assets delivered as guarantee | 13,415,360 | 13,415,360 | ||||||
| Total | 431,781,483 | 259,204,667 | 170,774,721 | 1,802,095 | ||||
| Financial liabilities | ||||||||
| At fair value through profit or loss | ||||||||
| Derivatives financial instruments | 7,453 | 7,453 | ||||||
| Total | 7,453 | 7,453 | ||||||
| Financial assets and financial liabilities measured at fair value<br> on a recurring basis as of December 31, 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 | 32,844,118 | 31,547,906 | 1,296,212 | |||||
| Derivatives financial instruments | 1,504 | 460 | 1,044 | |||||
| Other financial assets | 36,006 | 36,006 | ||||||
| Equity instruments at fair value through profit or loss | 2,465,857 | 14,459 | 2,451,398 | |||||
| At fair value through OCI | ||||||||
| Other debt Securities | 298,750,068 | 163,622,890 | 135,127,178 | |||||
| Total | 334,097,553 | 195,185,715 | 135,128,222 | 3,783,616 |
- 88 -
NOTES TO THE CONDENSEDSEPARATE INTERIM FINANCIAL STATEMENTS AS OF MARCH 31, 2022
(Translation of Financial statements originally issued in Spanish – See Note 41)
(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of March 31, 2022, except as otherwise indicated)
| Financial assets and financial liabilities measured at fair value <br><br>on a recurring basis as of December 31, 2021 | ||||||
|---|---|---|---|---|---|---|
| Description | Total | Level 1 | Level 2 | Level 3 | ||
| Financial liabilities | ||||||
| At fair value through profit or loss | ||||||
| Derivatives financial instruments | 2,939 | 2,939 | ||||
| Total | 2,939 | 2,939 |
Below is the reconciliation between the amounts at the beginning and the end of the period or fiscal year, as applicable, for the financial assets recognized at fair value, categorized as level 3:
| As of March 31, 2022 | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| Reconciliation | Debt instruments | Other financial<br> assets | Equity instruments<br> at fair value<br> through profit or<br> loss | ||||||
| Amount at the beginning | 1,296,212 | 36,006 | 2,451,398 | ||||||
| Transfers to Level 3 | |||||||||
| Transfers from Level 3 | |||||||||
| Profit and loss | 115,042 | 3,351 | 233 | ||||||
| Recognition and derecognition | 124,198 | 2,963 | (1,692,071 | ) | |||||
| Monetary effects | (183,218 | ) | (5,338 | ) | (346,681 | ) | |||
| Amount at the end of the period | 1,352,234 | 36,982 | 412,879 | ||||||
| As of December 31, 2021 | |||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Reconciliation | Debt instruments | Other financial<br> assets | Equity instruments<br> <br>at fair value<br> <br>through profit or loss | ||||||
| Amount at the beginning | 663,025 | 45,865 | 2,896,299 | ||||||
| Transfers to Level 3 | |||||||||
| Transfers from Level 3 | |||||||||
| Profit and loss | 409,223 | 2,122 | 721,689 | ||||||
| Recognition and derecognition | 583,168 | 5,960 | (25,882 | ) | |||||
| Monetary effects | (359,204 | ) | (17,941 | ) | (1,140,708 | ) | |||
| Amount at the end of the fiscal year | 1,296,212 | 36,006 | 2,451,398 |
Note 10 to the condensed consolidated interim financial statements, details the valuation techniques and significant unobservable inputs used in the valuation of assets at Level 3.
Changes in fair value levels
The Bank monitors the availability of information in the market to evaluate the classification of financial instruments into the fair value hierarchy as well as the resulting determination of transfers between levels 1, 2 and 3 at each fiscal year.
As of March 31, 2022 and December 31, 2021, the Bank has not recognized any transfers between levels 1, 2 and 3 of the fair value hierarchy.
- 89 -
NOTES TO THE CONDENSEDSEPARATE INTERIM FINANCIAL STATEMENTSAS OF MARCH 31, 2022
(Translation of Financial statements originally issued in Spanish – See Note 41)
(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of March 31, 2022, except as otherwise indicated)
Financial assets and liabilities not measured at fair value
The following table shows a comparison between the fair value and the carrying amount of financial instruments not recognized at fair value as of March 31, 2022 and December 31, 2021:
| 03/31/2022 | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Composition | Carrying<br><br> amount | Level 1 | Level 2 | Level 3 | Fair value | |||||
| Financial assets | ||||||||||
| Cash and deposits in banks | 170,020,311 | 170,020,311 | 170,020,311 | |||||||
| Other financial assets | 13,637,663 | 13,637,663 | 13,637,663 | |||||||
| Loans and other financing | 375,447,821 | 342,528,904 | 342,528,904 | |||||||
| Other debt securities | 28,436,048 | 22,870,843 | 649,862 | 156,143 | 23,676,848 | |||||
| Financial assets delivered as guarantee | 18,334,289 | 18,334,289 | 18,334,289 | |||||||
| Total | 605,876,132 | 224,863,106 | 649,862 | 342,685,047 | 568,198,015 | |||||
| Financial liabilities | ||||||||||
| Deposits | 673,797,903 | 339,591,649 | 333,574,888 | 673,166,537 | ||||||
| Repo transactions | 11,853,813 | 11,853,813 | 11,853,813 | |||||||
| Other financial liabilities | 48,302,204 | 46,754,132 | 1,483,214 | 48,237,346 | ||||||
| Financing received from the BCRA and other financial institutions | 2,008,050 | 160,298 | 1,847,190 | 2,007,488 | ||||||
| Issued corporate bonds | 3,096,173 | 2,875,062 | 2,875,062 | |||||||
| Subordinated corporate bonds | 46,085,956 | 36,838,136 | 36,838,136 | |||||||
| Total | 785,144,099 | 398,359,892 | 43,043,602 | 333,574,888 | 774,978,382 | |||||
| 12/31/2021 | ||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Composition | Carrying<br><br> amount | Level 1 | Level 2 | Level 3 | Fair value | |||||
| Financial assets | ||||||||||
| Cash and deposits in banks | 194,798,213 | 194,798,213 | 194,798,213 | |||||||
| Repo transactions | 36,452,615 | 36,452,615 | 36,452,615 | |||||||
| Other financial assets | 29,329,785 | 29,329,785 | 29,329,785 | |||||||
| Loans and other financing | 410,752,790 | 379,995,367 | 379,995,367 | |||||||
| Other debt securities | 27,909,260 | 26,546,116 | 754,293 | 181,235 | 27,481,644 | |||||
| Financial assets delivered as guarantee | 20,539,787 | 20,539,787 | 20,539,787 | |||||||
| Total | 719,782,450 | 307,666,516 | 754,293 | 380,176,602 | 688,597,411 | |||||
| Financial liabilities | ||||||||||
| Deposits | 679,079,386 | 383,266,353 | 295,427,694 | 678,694,047 | ||||||
| Other financial liabilities | 68,508,718 | 66,843,380 | 1,665,381 | 68,508,761 | ||||||
| Financing received from the BCRA and other financial institutions | 507,750 | 459,563 | 44,542 | 504,105 | ||||||
| Issued corporate bonds | 3,471,423 | 3,055,687 | 3,055,687 | |||||||
| Subordinated corporate bonds | 48,768,055 | 40,036,597 | 40,036,597 | |||||||
| Total | 800,335,332 | 450,569,296 | 44,802,207 | 295,427,694 | 790,799,197 |
- 90 -
NOTES TO THE CONDENSEDSEPARATE INTERIM FINANCIAL STATEMENTSAS OF MARCH 31, 2022
(Translation of Financial statements originally issued in Spanish – See Note 41)
(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of March 31, 2022, except as otherwise indicated)
| 9. | BUSINESS COMBINATIONS |
|---|
On October 1, 2021, the Bank exercised the call option to reach 24.99% of the equity interest in Fintech SGR, a structured entity in which the Bank has control. Details generated by this transaction are described in note 11 to the condensed consolidated interim financial statements.
| 10. | INVESTMENTS IN SUBSIDIARIES, ASSOCIATES AND JOINT ARRANGEMENTS |
|---|
The Bank’s interests in associates and joint ventures are disclosed in note 12 to the condensed consolidated interim financial statements.
| 11. | OTHER NON-FINANCIAL ASSETS |
|---|
The composition of other non-financial assets as of March 31, 2022 and December 31, 2021 is as follows:
| Composition | 03/31/2022 | 12/31/2021 | ||
|---|---|---|---|---|
| Advanced prepayments | 1,609,940 | 952,001 | ||
| Investment property (see Exhibit F) | 536,155 | 530,827 | ||
| Tax advances | 442,567 | 497,474 | ||
| Other | 140,977 | 167,684 | ||
| Total | 2,729,639 | 2,147,986 | ||
| 12. | 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.
- 91 -
NOTES TO THE CONDENSEDSEPARATE INTERIM FINANCIAL STATEMENTSAS OF MARCH 31, 2022
(Translation of Financial statements originally issued in Spanish – See Note 41)
(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of March 31, 2022, except as otherwise indicated)
As of March 31, 2022 and December 31, 2021, amounts balances related to transactions generated with related parties are as follows:
| As<br> of March 31, 2022 | ||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Main<br> subsidiaries | ||||||||||||||||||
| Macro<br> Bank<br><br> Limited | Macro<br><br> Securities <br><br> SA | Macro<br><br> Fondos <br><br> SGFCISA | Argenpay<br><br> SAU | Fintech<br><br> SGR | Associates | Key<br><br> management <br><br> personnel (1) | Other<br> <br><br> related <br><br> parties | Total | ||||||||||
| Assets | ||||||||||||||||||
| Cash and deposit in banks | 889 | 889 | ||||||||||||||||
| Other financial assets | 17,496 | 17,496 | ||||||||||||||||
| Loans and other financing (2) | ||||||||||||||||||
| Documents | 30,778 | 30,778 | ||||||||||||||||
| Overdraft | 40,237 | 318,868 | 359,105 | |||||||||||||||
| Credit cards | 78,271 | 79,074 | 157,345 | |||||||||||||||
| Lease | 34,093 | 34,093 | ||||||||||||||||
| Personal loans | 1,334 | 1,334 | ||||||||||||||||
| Mortgage loans | 265,170 | 265,170 | ||||||||||||||||
| Other loans | 1,411,226 | 81,589 | 1,284,433 | 2,777,248 | ||||||||||||||
| Other receivables from financial<br> intermediation | 699,169 | 699,169 | ||||||||||||||||
| Guarantee granted | 1,526,775 | 1,526,775 | ||||||||||||||||
| Total assets | 889 | 1,428,722 | 699,169 | 466,601 | 3,274,021 | 5,869,402 | ||||||||||||
| Liabilities | ||||||||||||||||||
| Deposits | 2 | 1,733,650 | 180,067 | 45,192 | 14 | 49,342 | 642,897 | 670,015 | 3,321,179 | |||||||||
| Other financial<br> liabilities | 271 | 16,918 | 17,189 | |||||||||||||||
| Subordinated<br> corporate bonds | 57,607 | 57,607 | ||||||||||||||||
| Other<br> non-financial liabilities | 13,273 | 13,273 | ||||||||||||||||
| Total<br> liabilities | 2 | 1,733,650 | 180,067 | 45,192 | 57,621 | 49,342 | 643,168 | 700,206 | 3,409,248 | |||||||||
| (1) | Includes close<br> family members of the key management personnel. | |||||||||||||||||
| --- | --- | |||||||||||||||||
| (2) | The maximum<br> financing amount for loans and other financing as of March 31, 2022 for Macro Securities<br> SA, Fintech SGR, Key management personnel and other related parties amounted to 1,427,836,<br> 787,386, 655,983 and 5,339,487, respectively. | |||||||||||||||||
| As<br> of December 31, 2021 | ||||||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | |||
| Main<br> subsidiaries | ||||||||||||||||||
| Macro<br> Bank<br><br> Limited | Macro<br><br> Securities <br><br> SA | Macro<br><br> Fondos <br><br> SGFCISA | Argenpay<br><br> SAU | Fintech<br><br> SGR | Associates | Key<br><br> management <br><br> personnel (1) | Other<br><br> related <br><br> parties | Total | ||||||||||
| Assets | ||||||||||||||||||
| Cash and deposit in banks | 955 | 955 | ||||||||||||||||
| Loans and other financing (2) | ||||||||||||||||||
| Documents | 33,127 | 33,127 | ||||||||||||||||
| Overdraft | 93,324 | 293,559 | 386,883 | |||||||||||||||
| Credit<br> cards | 83,375 | 52,080 | 135,455 | |||||||||||||||
| Lease | 33,342 | 33,342 | ||||||||||||||||
| Personal<br> loans | 1,654 | 1,654 | ||||||||||||||||
| Mortgage<br> loans | 297,834 | 297,834 | ||||||||||||||||
| Other<br> loans | 1,607,473 | 88,610 | 1,836,256 | 3,532,339 | ||||||||||||||
| Other<br> receivables from financial intermediation | 880,185 | 8,009 | 888,194 | |||||||||||||||
| Guarantee<br> granted | 1,185,364 | 1,185,364 | ||||||||||||||||
| Total assets | 955 | 1,607,473 | 880,185 | 564,797 | 3,441,737 | 6,495,147 |
- 92 -
NOTES TO THE CONDENSEDSEPARATE INTERIM FINANCIAL STATEMENTS AS OF MARCH 31, 2022
(Translation of Financial statements originally issued in Spanish – See Note 41)
(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of March 31, 2022, except as otherwise indicated)
| As<br> of December 31, 2021 | ||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Main<br> subsidiaries | ||||||||||||||||||
| Macro<br> Bank<br><br> Limited | Macro<br><br> Securities <br><br> SA | Macro<br><br> Fondos <br><br> SGFCISA | Argenpay<br><br> SAU | Fintech<br><br> SGR | Associates | Key<br><br> management <br><br> personnel (1) | Other<br><br> related <br><br> parties | Total | ||||||||||
| Liabilities | ||||||||||||||||||
| Deposits | 5 | 1,845,949 | 190,029 | 79,620 | 36 | 61,330 | 543,112 | 1,265,985 | 3,986,066 | |||||||||
| Other financial liabilities | 227 | 6,171 | 6,398 | |||||||||||||||
| Subordinated corporate bonds | 48,768 | 48,768 | ||||||||||||||||
| Other non-financial liabilities | 17,854 | 17,854 | ||||||||||||||||
| Total liabilities | 5 | 1,845,949 | 190,029 | 79,620 | 48,804 | 61,330 | 543,339 | 1,290,010 | 4,059,086 | |||||||||
| (1) | Includes close<br> family members of the key management personnel. | |||||||||||||||||
| --- | --- | |||||||||||||||||
| (2) | The maximum<br> financing amount for loans and other financing as of December 31, 2021 for Macro Securities<br> SA, Fintech SGR, Key management personnel and other related parties amounted to 1,620,992,<br> 880,185, 799,151 and 7,097,978, respectively. |
Profit or loss related to transactions generated during the three-month periods ended March 31, 2022 and 2021 with related parties are as follows:
| As<br> of March 31, 2022 | ||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Main<br> subsidiaries | ||||||||||||||||||||||
| Macro<br> Bank<br><br> Limited | Macro<br> <br><br> Securities <br><br> SA | Macro<br><br> Fondos <br><br> SGFCISA | Argenpay<br><br> SAU | Fintech<br><br> SGR | Associates | Key<br><br> management <br><br> personnel (1) | Other<br><br> related <br><br> parties | Total | ||||||||||||||
| Income / (loss) | ||||||||||||||||||||||
| Interest income | 906 | 51,992 | 230,378 | 283,276 | ||||||||||||||||||
| Interest expense | (2,545 | ) | (14,739 | ) | (1,184 | ) | (18,468 | ) | ||||||||||||||
| Commissions income | 383 | 25 | 149 | 35 | 4 | 7,280 | 7,876 | |||||||||||||||
| Commissions expense | (5 | ) | (245 | ) | (250 | ) | ||||||||||||||||
| Other operating income | 1 | 1,162 | 15 | 8 | 1,186 | |||||||||||||||||
| Administrative expense | (68,821 | ) | (68,821 | ) | ||||||||||||||||||
| Other operating expense | (13,207 | ) | (13,207 | ) | ||||||||||||||||||
| Total Income / (loss) | 1 | 2,451 | 25 | 15 | 149 | (2,510 | ) | 37,252 | 154,209 | 191,592 | ||||||||||||
| (1) | Includes close<br> family members of the key management personnel. | |||||||||||||||||||||
| --- | --- | |||||||||||||||||||||
| As of March 31, 2021 | ||||||||||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | ||
| Main<br> subsidiaries | ||||||||||||||||||||||
| Macro<br><br> Bank<br><br> Limited | Macro<br><br> Securities <br> SA | Macro<br><br> Fondos <br> SGFCISA | Argenpay<br><br> SAU | Associates | Key<br><br> management <br> personnel (1) | Other<br><br> related <br> parties | Total | |||||||||||||||
| Income / (loss) | ||||||||||||||||||||||
| Interest income | 1,196 | 34,755 | 318,308 | 354,259 | ||||||||||||||||||
| Interest expense | (3,049 | ) | (5,351 | ) | (17,834 | ) | (240,383 | ) | (266,617 | ) | ||||||||||||
| Commissions income | 6,169 | 43 | 71 | 3 | 5,972 | 12,258 | ||||||||||||||||
| Commissions expense | (17 | ) | (203 | ) | (220 | ) | ||||||||||||||||
| Other operating income | 2 | 4,669 | 9 | 4,680 | ||||||||||||||||||
| Administrative expense | (58,512 | ) | (58,512 | ) | ||||||||||||||||||
| Other operating expense | (25,455 | ) | (25,455 | ) | ||||||||||||||||||
| Total Income / (loss) | 2 | 8,985 | 43 | (5,280 | ) | 16,907 | (264 | ) | 20,393 | |||||||||||||
| (1) | Includes close<br> family members of the key management personnel. | |||||||||||||||||||||
| --- | --- |
- 93 -
NOTES TO THE CONDENSEDSEPARATE INTERIM FINANCIAL STATEMENTS AS OF MARCH 31, 2022
(Translation of Financial statements originally issued in Spanish – See Note 41)
(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of March 31, 2022, except as otherwise indicated)
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 March 31, 2022 and 2021, totaled 95,804 and 145,565, respectively.
In addition, fees received by the Directors as of March 31, 2022 and 2021 amounted to 469,837 and 877,338, respectively.
Additionally, the composition of the Board of Directors and key management personnel is as follows:
| Composition | 03/31/2022 | 12/31/2021 | ||
|---|---|---|---|---|
| Board of Directors | 13 | 13 | ||
| Senior managers of the key management personnel | 11 | 11 | ||
| Total | 24 | 24 | ||
| 13. | OTHER FINANCIAL LIABILITIES | |||
| --- | --- |
The composition of other financial liabilities as of March 31, 2022 and December 31, 2021 is as follows:
| Composition | 03/31/2022 | 12/31/2021 | ||
|---|---|---|---|---|
| Credit and debit card settlement - due to merchants | 35,038,446 | 38,356,250 | ||
| Amounts payable for spot purchases of government securities pending settlement | 4,047,130 | 1,845,819 | ||
| Payment orders pending to foreign exchange settlement | 3,191,140 | 3,452,384 | ||
| Collections and other transactions on account and behalf of others | 2,253,818 | 2,822,200 | ||
| Finance leases liabilities | 1,459,742 | 1,635,515 | ||
| Amounts payable for spot purchases of foreign currency pending settlement | 193,472 | 18,004,499 | ||
| Other | 2,118,456 | 2,392,051 | ||
| Total | 48,302,204 | 68,508,718 | ||
| 14. | PROVISIONS | |||
| --- | --- |
This item includes the amounts estimated to face a liability of probable occurrence, which if occurring, would originate a loss for the Bank.
Exhibit J “Changes in Provisions” presents the changes in provisions as of March 31, 2022 and December 31, 2021.
- 94 -
NOTES TO THE CONDENSEDSEPARATE INTERIM FINANCIAL STATEMENTS AS OF MARCH 31, 2022
(Translation of Financial statements originally issued in Spanish – See Note 41)
(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of March 31, 2022, except as otherwise indicated)
The expected terms to settle these obligations are as follows:
| 03/31/2022 | ||||||||
|---|---|---|---|---|---|---|---|---|
| Composition | Within 12<br><br> months | Over12<br> <br>months | 03/31/2022 | 12/31/2021 | ||||
| For administrative, disciplinary and criminal penalties | 500 | 500 | 580 | |||||
| Letters of credits, guarantees and other commitments (1) | 430,261 | 430,261 | 386,446 | |||||
| Commercial claims in progress (2) | 32,022 | 322,394 | 354,416 | 368,564 | ||||
| Labor lawsuits | 135,126 | 111,597 | 246,723 | 250,007 | ||||
| Pension funds - reimbursement | 39,416 | 98,258 | 137,674 | 123,336 | ||||
| Other | 16,393 | 805,000 | 821,393 | 766,966 | ||||
| Total | 653,218 | 1,337,749 | 1,990,967 | 1,895,899 | ||||
| (1) | These amounts correspond to the ECL calculated for contingent transactions, which are mentioned in note<br>4. | |||||||
| --- | --- | |||||||
| (2) | See also note 35.2. | |||||||
| 15. | OTHER NON-FINANCIAL LIABILITIES | |||||||
| --- | --- |
The composition of other non-financial liabilities as of March 31, 2022 and December 31, 2021 is as follows:
| Composition | 03/31/2022 | 12/31/2021 | ||
|---|---|---|---|---|
| Dividends payables (see note 36) | 26,580,415 | 30,851,805 | ||
| Withholdings | 7,853,099 | 8,108,750 | ||
| Salaries, bonuses and payroll taxes payables | 5,485,185 | 7,490,416 | ||
| Taxes payables | 3,730,184 | 3,731,889 | ||
| Miscellaneous payables | 1,562,973 | 2,127,492 | ||
| Retirement pension payment orders pending settlement | 571,968 | 490,998 | ||
| Fees payables | 55,065 | 301,932 | ||
| Other | 917,423 | 1,256,190 | ||
| Total | 46,756,312 | 54,359,472 | ||
| 16. | ANALYSIS OF FINANCIAL ASSETS TO BE RECOVERED AND FINANCIAL LIABILITIES TO BE SETTLED | |||
| --- | --- |
The following tables show the analysis of financial assets and liabilities the Bank expects to recover and settle as of March 31, 2022 and December 31, 2021:
| 03/31/2022 | Without due<br><br> date | Total up to 12<br><br> months | Total over 12<br><br> months | |||
|---|---|---|---|---|---|---|
| Assets | ||||||
| Cash and deposits in banks | 170,020,311 | |||||
| Debt securities at fair value through profit or loss | 21,405,761 | 5,798,393 | ||||
| Other financial assets | 2,798,980 | 3,741,734 | 7,133,931 | |||
| Loans and other financing (1) | 267,418 | 247,471,914 | 127,708,489 | |||
| Other debt securities | 377,907,902 | 41,227,626 | ||||
| Financial assets delivered as guarantee | 18,334,289 | 13,415,360 | ||||
| Equity instruments at fair value through profit or loss | 425,507 | |||||
| Total assets | 191,846,505 | 663,942,671 | 181,868,439 |
- 95 -
NOTES TO THE CONDENSEDSEPARATE INTERIM FINANCIAL STATEMENTS AS OF MARCH 31, 2022
(Translation of Financial statements originally issued in Spanish – See Note 41)
(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of March 31, 2022, except as otherwise indicated)
| 03/31/2022 | Without due<br><br> date | Total up to 12<br><br> months | Total over 12<br><br> months | |||
|---|---|---|---|---|---|---|
| Liabilities | ||||||
| Deposits | 334,060,790 | 339,705,238 | 31,875 | |||
| Derivative financial instruments | 7,453 | |||||
| Repo transactions | 11,853,813 | |||||
| Other financial liabilities | 47,428,244 | 873,960 | ||||
| Financing received from the BCRA and other financial institutions | 2,006,009 | 2,041 | ||||
| Issued corporate bonds | 3,096,173 | |||||
| Subordinated corporate bonds | 1,694,636 | 44,391,320 | ||||
| Total liabilities | 334,060,790 | 405,791,566 | 45,299,196 | |||
| (1) | The amounts included in “without due date” are related to the non-performing portfolio. | |||||
| --- | --- | |||||
| 12/31/2021 | Without due<br><br> date | Total up to 12<br><br> months | Total over 12<br><br> months | |||
| --- | --- | --- | --- | --- | --- | --- |
| Assets | ||||||
| Cash and deposits in banks | 194,798,213 | |||||
| Debt securities at fair value through profit or loss | 21,342,722 | 11,501,396 | ||||
| Derivative financial instruments | 1,504 | |||||
| Repo transactions | 36,452,615 | |||||
| Other financial assets | 2,056,474 | 21,657,815 | 5,651,502 | |||
| Loans and other financing (1) | 190,587 | 270,414,995 | 140,147,208 | |||
| Other debt securities | 272,703,192 | 53,956,136 | ||||
| Financial assets delivered as guarantee | 20,539,787 | |||||
| Equity instruments at fair value through profit or loss | 2,465,857 | |||||
| Total assets | 220,050,918 | 622,572,843 | 211,256,242 | |||
| Liabilities | ||||||
| --- | --- | --- | --- | |||
| Deposits | 376,293,482 | 302,749,425 | 36,479 | |||
| Derivative financial instruments | 2,939 | |||||
| Other financial liabilities | 67,496,294 | 1,012,424 | ||||
| Financing received from the BCRA and other financial institutions | 501,828 | 5,922 | ||||
| Issued corporate bonds | 3,471,423 | |||||
| Subordinated corporate bonds | 1,063,413 | 47,704,642 | ||||
| Total liabilities | 376,293,482 | 375,285,322 | 48,759,467 | |||
| (1) | The amounts included in “without due date” are related to the non-performing portfolio. | |||||
| --- | --- | |||||
| 17. | DISCLOSURES BY OPERATING SEGMENT | |||||
| --- | --- |
The Bank has an approach of its banking business that is described in note 19 to the condensed consolidated interim financial statements.
- 96 -
NOTES TO THE CONDENSEDSEPARATE INTERIM FINANCIAL STATEMENTS
AS OF MARCH 31, 2022
(Translation of Financial statements originally issued in Spanish – See Note 41)
(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of March 31, 2022, except as otherwise indicated)
| 18. | INCOME TAX |
|---|---|
| a) | Inflation adjustment and tax rate on income tax |
| --- | --- |
Note 20 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: | ||||
|---|---|---|---|---|---|
| Description | 03/31/2022 | 03/31/2021 | |||
| --- | --- | --- | --- | --- | --- |
| Current income tax expense | 295,707 | 1,632,131 | |||
| Loss for deferred income taxes | 936,985 | 1,534,352 | |||
| Monetary effects | 78,392 | 323,137 | |||
| Income tax loss recorded in the statement of income | 1,311,084 | 3,489,620 | |||
| Income tax (income) / loss recorded in other comprehensive income | (167,444 | ) | 420,664 | ||
| Total | 1,143,640 | 3,910,284 |
Tax inflation adjustment – Fiscal years 2019 and 2020.
As decided by the Board of Directors in the meeting held on May 11, 2020, considering certain case law on the matter assessed by its legal counsel and tax advisors, on May 26, 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 20 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 accrued income tax for Banco Macro SA for such fiscal year that amounted to 9,933,210 (not restated).
In addition, on July 23, 2021, the Bank filed a reimbursement action with the AFIP requesting that 254,305 (not restated) paid as income tax for the 2020 tax period be reimbursed.
As to the tax periods mentioned in previous paragraphs, on November 1, 2021, the AFIP notified the beginning of an income tax audit.
Along with the filings mentioned in the first paragraph of this section, on December 28, 2021, the Bank filed petitions for declaratory judgment with the Federal Administrative Contentious Court for the periods under analysis. The file 22274/2021, for the fiscal year 2019, is in process in Court No. 12 and the file 22278/2021, for the fiscal year 2020, is in process in Court No. 1.
Reimbursement actions – Fiscal years 2013 to 2017 and 2018
On October 24, 2019, Banco Macro SA filed with the AFIP-DGI (Argentine tax authorities) two reimbursement actions under the terms established by the first paragraph of section 81, Law No. 11683 requesting the reimbursement of 4,782,766 and 5,015,451 (not restated amounts) paid to tax authorities as income tax during tax periods 2013 through 2017 and 2018, respectively, arising from the impossibility to apply the adjustment for inflation and other adjustment mechanisms set forth by Income Tax Law (prior to the amendments introduced by Laws No. 27430 and 27468 for periods 2013 through 2017, and as revised in 2019 and amended for the 2018 tax period), plus the related compensatory interest (SIGEA [case and file management system] files No. 19144-14224/2019 and 19144-14222/2019). Since tax authorities have not yet issued a resolution with respect to the abovementioned claims, on August 7, 2020, the Bank filed both reimbursement requests under the terms of section 81, Law No. 11683 with the Federal Contentious and Administrative Trial Courts, which are pending in Courts No. 8 and 2 of such jurisdiction, respectively (cases No. 11285/2020 and 11296/2020). Both cases are currently at the trial stage.
- 97 -
NOTES TO THE CONDENSED SEPARATE INTERIM FINANCIAL STATEMENTS
ASOF MARCH 31, 2022
(Translation of Financial statements originally issued in Spanish – See Note 41)
(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of March 31, 2022, except as otherwise indicated)
In connection with the tax periods mentioned in the previous paragraph, on December 19, 2019, the AFIP notified the beginning of the income tax audit for the 2018 tax period, and on May 3, 2021, it notified the beginning of the income tax audit for periods 2013 through 2017. On October 4, 2021, the AFIP ended the audit for periods 2013 through 2017 as the Bank had exercised in due time its right to resort to justice, and that the admission of reimbursement is subject to a court decision.
| 19. | COMMISSIONS INCOME | |||
|---|---|---|---|---|
| Composition | 03/31/2022 | 03/31/2021 | ||
| --- | --- | --- | --- | --- |
| Performance obligations satisfied at a point in time | ||||
| Commissions related to obligations | 6,277,557 | 5,420,263 | ||
| Commissions related to credit cards | 3,712,206 | 3,434,704 | ||
| Commissions related to insurance | 653,161 | 668,559 | ||
| Commissions related to trading and foreign exchange transactions | 242,455 | 231,562 | ||
| Commissions related to securities value | 95,453 | 72,137 | ||
| Commissions related to loans and other financing | 42,786 | 29,119 | ||
| Commissions related to financial guarantees granted | 563 | 189 | ||
| Performance obligations satisfied over certain time period | ||||
| Commissions related to credit cards | 96,542 | 121,893 | ||
| Commissions related to trading and foreign exchange transactions | 8,833 | 14,041 | ||
| Commissions related to obligations | 229 | 283 | ||
| Commissions related to loans and other financing | 51 | 420 | ||
| Commissions related to financial guarantees granted | 110 | |||
| Total | 11,129,836 | 9,993,280 | ||
| 20. | DIFFERENCES IN QUOTED PRICES OF GOLD AND FOREIGN CURRENCY | |||
| --- | --- | |||
| Composition | 03/31/2022 | 03/31/2021 | ||
| --- | --- | --- | --- | --- |
| Translation of foreign currency assets and liabilities into pesos | 2,876,968 | 1,587,714 | ||
| Income from foreign currency exchange | 250,142 | 189,387 | ||
| Total | 3,127,110 | 1,777,101 | ||
| 21. | OTHER OPERATING INCOME | |||
| --- | --- | |||
| Composition | 03/31/2022 | 03/31/2021 | ||
| --- | --- | --- | --- | --- |
| Services | 611,482 | 588,005 | ||
| For initial recognition of loans and other financing | 426,616 | 4,650 | ||
| Adjustments and interest from other receivables | 253,990 | 325,355 | ||
| Other receivables from financial intermediation | 202,499 | 478,085 | ||
| Adjustments from other receivables with CER clauses | 121,931 | 92,899 | ||
| Sale of investment properties and other non-financial assets | 12,883 | |||
| Sale of property, plant and equipment | 173 | 2,649 | ||
| Other | 898,991 | 606,156 | ||
| Total | 2,528,565 | 2,097,799 |
- 98 -
NOTES TO THE CONDENSEDSEPARATE INTERIM FINANCIAL STATEMENTS
AS OF MARCH 31, 2022
(Translation of Financial statements originally issued in Spanish – See Note 41)
(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of March 31, 2022, except as otherwise indicated)
| 22. | EMPLOYEE BENEFITS | |||
|---|---|---|---|---|
| Composition | 03/31/2022 | 03/31/2021 | ||
| --- | --- | --- | --- | --- |
| Remunerations | 6,567,582 | 8,020,853 | ||
| Payroll taxes | 1,500,397 | 1,798,867 | ||
| Compensations and bonuses to employees | 1,151,904 | 1,003,442 | ||
| Employee services | 378,286 | 242,945 | ||
| Total | 9,598,169 | 11,066,107 | ||
| 23. | ADMINISTRATIVE EXPENSES | |||
| --- | --- | |||
| Composition | 03/31/2022 | 03/31/2021 | ||
| --- | --- | --- | --- | --- |
| Maintenance, conservation and repair expenses | 875,007 | 890,456 | ||
| Taxes | 849,919 | 829,397 | ||
| Armored truck, documentation and events | 776,170 | 799,898 | ||
| Security services | 571,719 | 584,357 | ||
| Electricity and communications | 543,323 | 616,930 | ||
| Other fees | 487,368 | 378,489 | ||
| Software | 422,024 | 493,183 | ||
| Fees to directors and syndics | 252,658 | 142,813 | ||
| Advertising and publicity | 250,680 | 88,314 | ||
| Insurance | 65,327 | 69,434 | ||
| Representation, travel and transportation expenses | 63,043 | 41,832 | ||
| Hired administrative services | 38,175 | 25,374 | ||
| Stationery and office supplies | 38,013 | 30,612 | ||
| Leases | 27,947 | 48,369 | ||
| Other | 136,837 | 179,456 | ||
| Total | 5,398,210 | 5,218,914 | ||
| 24. | OTHER OPERATING EXPENSES | |||
| --- | --- | |||
| Composition | 03/31/2022 | 03/31/2021 | ||
| --- | --- | --- | --- | --- |
| Turnover tax | 5,491,777 | 5,385,314 | ||
| From credit cards | 2,391,731 | 2,016,414 | ||
| Charges for other provisions | 424,987 | 618,143 | ||
| Deposit guarantee fund contributions | 274,665 | 348,865 | ||
| Donations | 125,204 | 1,006 | ||
| Taxes | 70,899 | 143,569 | ||
| Interest on lease liabilities | 54,773 | 64,000 | ||
| Insurance claims | 53,790 | 16,735 | ||
| From administrative, disciplinary and criminal penalties | 47,576 | |||
| Loss from sale or impairment of investments in properties and other non-financial assets | 11,707 | |||
| Other | 1,164,805 | 1,137,552 | ||
| Total | 10,052,631 | 9,790,881 |
- 99 -
NOTES TO THE CONDENSED SEPARATE INTERIM FINANCIAL STATEMENTS
ASOF MARCH 31, 2022
(Translation of Financial statements originally issued in Spanish – See Note 41)
(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of March 31, 2022, except as otherwise indicated)
| 25. | 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:
| Reconciliation | 03/31/2022 | 12/31/2021 | 03/31/2021 | 12/31/2020 | ||||
|---|---|---|---|---|---|---|---|---|
| Cash and deposits in banks | 170,020,311 | 194,798,213 | 210,999,164 | 200,596,359 | ||||
| Debt Securities at fair value through profit or loss | 88,487 | 5,641 | ||||||
| Other debt securities | 210,939,166 | 154,338,735 | 189,015,252 | 225,436,622 | ||||
| Total | 381,047,964 | 349,142,589 | 400,014,416 | 426,032,981 | ||||
| 26. | CAPITAL STOCK | |||||||
| --- | --- |
The Bank’s subscribed and paid-in capital from December 31, 2019 to March 31, 2022, amounted to 639,413.
| 27. | DEPOSIT GUARANTEE INSURANCE |
|---|
Note 30 to the condensed consolidated interim financial statements describes the Deposit Guarantee Insurance System and the scope thereof.
Banco Macro SA holds a 7.7330% interest in the capital stock according to the percentages disclosed by BCRA Communiqué “B” 12305 issued on March 17, 2022.
| 28. | RESTRICTED ASSETS |
|---|
As of March 31, 2022 and December 31, 2021 the following Bank’s assets are restricted:
| Composition | 03/31/2022 | 12/31/2021 | |||
|---|---|---|---|---|---|
| Debt securities at fair value through profit or loss and other debt securities | |||||
| ● | Discount bonds in pesos regulated by Argentine legislation,<br>maturing in 2033 for the 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. | 58,356 | 56,516 |
- 100 -
NOTES TO THE CONDENSEDSEPARATE INTERIM FINANCIAL STATEMENTS
AS OF MARCH 31, 2022
(Translation of Financial statements originally issued in Spanish – See Note 41)
(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of March 31, 2022, except as otherwise indicated)
| Composition (contd.) | 03/31/2022 | 12/31/2021 | |||
|---|---|---|---|---|---|
| Debt securities at fair value through profit or loss and other debt securities (contd.) | |||||
| ● | Federal<br>Government Treasury Bonds in pesos adjusted by CER 1.40%, maturity 03/27/2023, securing the sectorial Credit Program of the Province<br>of San Juan, production investment financing fund. | 51,066 | 51,825 | ||
| ● | Federal Government Treasury Bonds in pesos adjusted by CER<br>1.40%, maturity 03/27/2023, securing the regional economies Competitiveness Program – IDB loan No. 3174/OC-AR. | 20,644 | 20,951 | ||
| ● | Federal Government Treasury Bonds in pesos adjusted by CER<br>1.40%, maturity 03/27/2023, for the contribution to the Guarantee Fund II in BYMA according to section 45, Law 26831, and supplementary<br>regulations established by CNV standards (NT 2013, as amended). | 9,127 | 9,262 | ||
| Subtotal debt securities at fair value through profit or loss and other debt securities | 139,193 | 138,554 | |||
| Other financial assets | |||||
| --- | --- | --- | --- | ||
| ● | Sundry<br>debtors – attachment within the scope of the claim filed by the DGR against the CABA for turnover tax differences. | 827 | 960 | ||
| Subtotal Other financial assets | 827 | 960 | |||
| Loans and other financing – non-financial private sector and foreign residents | |||||
| --- | --- | --- | --- | ||
| ● | Interests<br>derived from contributions made as protector partner (1). | 718,389 | 885,031 | ||
| Subtotal loans and other financing | 718,389 | 885,031 | |||
| Financial assets delivered as a guarantee | |||||
| --- | --- | --- | --- | ||
| ● | Special<br>guarantee checking accounts opened in the BCRA for transactions related to the electronic clearing houses and similar entities. | 15,999,559 | 18,020,036 | ||
| ● | For<br>securities forward contracts. | 13,415,360 | |||
| ● | Guarantee<br>deposits related to credit and debit card transactions. | 2,021,139 | 1,529,646 | ||
| ● | Other<br>guarantee deposits. | 313,591 | 990,105 | ||
| Subtotal Financial assets delivered as a guarantee | 31,749,649 | 20,539,787 | |||
| Other non-financial assets | |||||
| ● | Real<br>property related to a call option sold. | 90,231 | 90,231 | ||
| Subtotal other non-financial assets | 90,231 | 90,231 | |||
| Total | 32,698,289 | 21,654,563 | |||
| (1) | As of March 31, 2022 and December 31, 2021 it is related to the risk fund Fintech SGR and Garantizar<br>SGR. In order to keep tax benefits related to these contributions, they must be maintained between two and three years from the date they<br>were made. | ||||
| --- | --- | ||||
| 29. | TRUST ACTIVITIES | ||||
| --- | --- |
Note 32 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:
| 29.1 | Financial trusts for investment purposes |
|---|
As of March 31, 2022 and December 31, 2021, the debt securities with investment purposes and certificate of participation in financial trusts amounted to 667,386 and 616,213, 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.
- 101 -
NOTES TO THE CONDENSEDSEPARATE INTERIM FINANCIAL STATEMENTS
AS OF MARCH 31, 2022
(Translation of Financial statements originally issued in Spanish – See Note 41)
(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of March 31, 2022, except as otherwise indicated)
| 29.2 | Trusts created using financial assets transferred by the Bank (Securitization) |
|---|
As of March 31, 2022 and December 31, 2021, considering the latest available accounting information as of the date of issuance of these condensed separate interim financial statements, the assets managed through Macro Fiducia SA of this type of trusts amounted to 9,604 and 11,147, respectively.
| 29.3 | Trusts guaranteeing loans granted by the Bank |
|---|
As of March 31, 2022 and December 31, 2021, considering the latest available accounting information as of the date of issuance of these condensed separate interim financial statements, the assets managed by the Bank amounted to 2,294,141 and 2,349,163, respectively.
| 29.4 | Trusts in which the Bank acts as Trustee (Management) |
|---|
As of March 31, 2022 and December 31, 2021, considering the latest available accounting information as of the date of issuance of these condensed separate interim financial statements, the assets managed by the Bank amounted to 3,196,087 and 3,448,054, respectively.
| 30. | COMPLIANCE WITH CNV REGULATIONS |
|---|
Considering Banco Macro SA’s current operations, and according to the different categories of agents established by CNV rules (as per General Resolution 622/2013, as amended), the Bank is registered with this agency as Agent for the Custody of Collective Investment Products of Mutual Funds (AC PIC FCI, for their acronyms in Spanish) – Comprehensive Depositary Company, clearing and settlement agent and trading agent (ALyC and AN – comprehensive for their acronyms in Spanish), financial trustee Agent (FF, for its acronym in Spanish) and Guarantee Entity (in the process of being registered). Note 33.3 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 March 31, 2022 stated in Units of Purchasing Power (UVA, for its acronym in Spanish) amounted to 2,592,543,499 and exceeds the minimum amount required by such 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 required statutory guarantee account of 710,175 UVAs, which the Bank paid-in with government securities as described in note 28 and the cash deposits in BCRA accounts 000285 and 80285 belonging to the Bank.
In addition, note 33.2 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.
| 31. | ACCOUNTING ITEMS THAT IDENTIFY THE COMPLIANCE WITH MINIMUM CASH REQUIREMENTS |
|---|
The items recognized by the Bank to constitute the minimum cash requirement effective for March 2022 are described in note 34 to the condensed consolidated interim financial statements.
| 32. | PENALTIES APPLIED TO THE ENTITY AND SUMMARY PROCEEDINGS INITIATED BY THE BCRA |
|---|
Note 35 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 previously mentioned, should be recorded or disclosed.
- 102 -
NOTES TO THE CONDENSEDSEPARATE INTERIM FINANCIAL STATEMENTS
AS OF MARCH 31, 2022
(Translation of Financial statements originally issued in Spanish – See Note 41)
(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of March 31, 2022, except as otherwise indicated)
| 33. | 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>03/31/2022 | 03/31/2022 | 12/31/2021 | ||||
|---|---|---|---|---|---|---|---|---|
| Subordinated Resettable – Class A | USD | 400,000,000 | USD | 400,000,000 | 46,085,956 | 48,768,055 | ||
| Non-subordinated – Class B | $ | 4,620,570,000 | $ | 2,889,191,000 | 3,096,173 | 3,471,423 | ||
| Total | 49,182,129 | 52,239,478 |
Note 36 to the condensed consolidated interim financial statements describes liabilities for corporate bonds recognized by the Bank.
| 34. | OFF BALANCE SHEET TRANSACTIONS |
|---|
In addition to note 4, the Bank recognizes different off balance sheet transactions, pursuant to the BCRA standards. The composition of the amounts of the main off balance sheet transactions as of March 31, 2022 and December 31, 2021 is as follows:
| Composition | 03/31/2022 | 12/31/2021 | ||
|---|---|---|---|---|
| Custody of government and private securities and other assets held by third parties | 367,014,788 | 352,386,241 | ||
| Preferred and other collaterals received from customers (1) | 116,951,013 | 139,532,172 | ||
| Outstanding checks not yet paid | 10,636,095 | 12,939,552 | ||
| Checks already deposited and pending clearance | 7,776,134 | 9,412,343 | ||
| (1) | Related to collaterals used to secure loans transactions and other financing, under the applicable rules in force on this matter. | |||
| --- | --- | |||
| 35. | TAX AND OTHER CLAIMS | |||
| --- | --- |
35.1. Tax claims
Note 38.1 to the condensed consolidated interim financial statements describes the most relevant claims pending resolution and filed by the AFIP and the tax authorities of the relevant jurisdictions.
The Bank’s Management and its legal counsel consider no further significant accounting effects could arise from the final outcome of the abovementioned proceedings other than those disclosed in these condensed separate interim financial statements.
35.2. Other claims
Note 38.2 to the condensed consolidated interim financial statements describes the most relevant claims pending resolution and filed by the different consumers’ associations.
The Bank’s Management and its legal counsel consider no further significant accounting effects could arise from the final outcome of the above mentioned proceedings other than those disclosed in these condensed separate interim financial statements.
- 103 -
NOTES TO THE CONDENSEDSEPARATE INTERIM FINANCIAL STATEMENTS
AS OF MARCH 31, 2022
(Translation of Financial statements originally issued in Spanish – See Note 41)
(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of March 31, 2022, except as otherwise indicated)
| 36. | RESTRICTION ON DIVIDENDS DISTRIBUTION |
|---|
Note 39 to the condensed consolidated interim financial statements describes the main legal provisions regulating the restriction on profit distribution, and also the decisions adopted by the Shareholders’ Meeting held on April 29, 2022.
| 37. | CAPITAL MANAGEMENT, CORPORATE GOVERNANCE TRANSPARENCY POLICY AND RISK MANAGEMENT |
|---|
Note 40 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.
| 38. | 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 41 to the condensed consolidated interim financial statements.
| 39. | EFFECTS OF THE CORONAVIRUS (COVID-19) OUTBREAK |
|---|
In early March 2020, the World Health Organization declared Coronavirus (Covid-19) a pandemic. This emergency situation over public health was worldwide expanded and several countries took 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 42 to the condensed consolidated interim financial statements.
| 40. | EVENTS AFTER REPORTING PERIOD |
|---|
No other significant events occurred between the end of the period and the issuance of these condensed separate interim financial statements that may materially affect the financial position or the profit and loss for the period, not disclosed in these condensed separate interim financial statements.
| 41. | ACCOUNTING PRINCIPLES – EXPLANATION ADDED FOR TRANSLATION INTO ENGLISH |
|---|
These condensed separate interim financial statements are presented in accordance with the accounting framework established by the BCRA, as mentioned in note 3. These accounting standards may not conform to accounting principles generally accepted in other countries.
| - 104 - | Delfín Jorge Ezequiel Carballo<br> Chairperson | ||||||||
|---|---|---|---|---|---|---|---|---|---|
| EXHIBIT A | |||||||||
| --- | |||||||||
| DETAIL OF GOVERNMENT AND PRIVATE SECURITIES | |||||||||
| AS OF MARCH 31, 2022 AND DECEMBER 31, 2021 | |||||||||
| (Translation of the Financial statements originally issued in Spanish – See Note 41) | |||||||||
| (Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of March 31, 2022, except as otherwise indicated) | |||||||||
| **** | **** | Holdings | Position | ||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| **** | **** | 03/31/2022 | 12/31/2021 | 03/31/2022 | |||||
| Name | Identification | Fair Value | Fair value level | Book amounts | Book amounts | Position without options | Options | Final position | |
| DEBT SECURITIES AT FAIR VALUE THROUGH PROFIT OR LOSS | |||||||||
| - Local | |||||||||
| Government securities | |||||||||
| Federal government bonds in pesos - Private Badlar + 200 PB - Maturity: 04-03-2022 | 5480 | 1 | 6,127,490 | 8,513,826 | 6,127,490 | 6,127,490 | |||
| Federal government treasury bonds in pesos adjusted by CER - Maturity: 09-20-2022 | 5495 | 1 | 5,648,662 | 8,487,154 | 7,066,802 | 7,066,802 | |||
| Federal government treasury bonds in pesos adjusted by CER - Maturity: 03-25-2024 | 5493 | 1 | 4,476,398 | 4,306,033 | 4,476,398 | 4,476,398 | |||
| Federal government treasury bonds in pesos adjusted by CER - Maturity: 03-25-2023 | 5492 | 1 | 3,671,926 | 4,468,953 | 4,219,522 | 4,219,522 | |||
| Federal government treasury bonds in pesos adjusted by CER - Maturity: 03-06-2023 | 5324 | 1 | 2,079,542 | 1,987,141 | 2,079,542 | 2,079,542 | |||
| Federal government treasury bonds in pesos adjusted by CER - Maturity: 11-09-2026 | 5925 | 1 | 890,011 | 721,337 | 890,011 | 890,011 | |||
| Treasury bills in pesos adjusted by CER to discount - Maturity: 04-29-2022 | 5948 | 1 | 662,178 | 662,178 | 662,178 | ||||
| Letters of National Estate in pesos adjusted by CER to discount - Maturity: 10-21-2022 | 5969 | 1 | 558,794 | 558,794 | 558,794 | ||||
| Letters of National Estate in pesos adjusted by CER to discount - Maturity: 05-23-2022 | 5936 | 1 | 473,699 | 539,678 | 524,204 | 524,204 | |||
| Letters of National Estate in pesos adjusted by CER to discount - Maturity: 07-29-2022 | 5815 | 1 | 432,228 | 473,238 | 432,228 | 432,228 | |||
| Other | 830,992 | 2,050,546 | 2,177,654 | 2,177,654 | |||||
| Subtotal local government securities | 25,851,920 | 31,547,906 | 29,214,823 | 29,214,823 | |||||
| Private securities | |||||||||
| Corporate Bonds Tarjeta Naranja C048 - Maturity: 04-26-2022 | 55317 | 3 | 543,144 | 626,233 | 543,144 | 543,144 | |||
| Debt Securities in Financial Trusts Secubono | 3 | 410,077 | 223,211 | 410,077 | 410,077 | ||||
| Corporate Bonds Ledesma SA C010 - Maturity: 05-27-2022 | 55500 | 3 | 247,424 | 293,183 | 247,424 | 247,424 | |||
| Debt Securities in Financial Trusts Surcos | 3 | 115,458 | 150,155 | 115,458 | 115,458 | ||||
| Debt Securities in Financial Trusts Accicom Loans Personal | 3 | 32,896 | 32,896 | 32,896 | |||||
| Securities of companies of public services | 3 | 3,235 | 3,430 | 3,235 | 3,235 | ||||
| Subtotal local private securities | 1,352,234 | 1,296,212 | 1,352,234 | 1,352,234 | |||||
| TOTAL DEBT SECURITIES AT FAIR VALUE THROUGH PROFIT OR LOSS | 27,204,154 | 32,844,118 | 30,567,057 | 30,567,057 | |||||
| - 105 - | Delfín Jorge Ezequiel Carballo<br> Chairperson | ||||||||
| --- | --- | ||||||||
| EXHIBIT A | |||||||||
| --- | |||||||||
| (continued) | |||||||||
| DETAIL OF GOVERNMENT AND PRIVATE SECURITIES | |||||||||
| AS OF MARCH 31, 2022 AND DECEMBER 31, 2021 | |||||||||
| (Translation of the Financial statements originally issued in Spanish – See Note 41) | |||||||||
| (Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of March 31, 2022, except as otherwise indicated) | |||||||||
| **** | **** | Holdings | Position | ||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | |
| **** | **** | 03/31/2022 | 12/31/2021 | 03/31/2022 | |||||
| Name | Identification | Fair Value | Fair value level | Book amounts | Book amounts | Position without options | Options | Final position | |
| OTHER DEBT SECURITIES | |||||||||
| Measured at fair value through other comprehensive income | |||||||||
| - Local | |||||||||
| Government securities | |||||||||
| Federal government treasury bonds linked to dollar - Maturity: 04-28-2023 | 5928 | 1 | 29,877,837 | 34,033,408 | 29,877,837 | 29,877,837 | |||
| Federal government treasury bonds in pesos adjusted by CER - Maturity: 09-20-2022 | 5495 | 1 | 25,585,184 | 29,150,765 | 25,585,184 | 25,585,184 | |||
| Letters of National Estate in pesos adjusted by CER to discount - Maturity: 01-20-2023 | 9105 | 1 | 24,812,114 | 24,812,114 | 24,812,114 | ||||
| Letters of National Estate in pesos adjusted by CER to discount - Maturity: 07-29-2022 | 5815 | 1 | 20,006,789 | 22,736,664 | 20,006,789 | 20,006,789 | |||
| Letters of National Estate in pesos adjusted by CER to discount - Maturity: 10-21-2022 | 5969 | 1 | 16,414,102 | 16,414,102 | 16,414,102 | ||||
| Federal government bonds in pesos Private Badlar + 200 PB - Maturity: 04-03-2022 | 5480 | 1 | 15,277,109 | 17,645,715 | 15,277,109 | 15,277,109 | |||
| Federal government treasury bonds in pesos adjusted by CER - Maturity: 03-25-2023 | 5492 | 1 | 14,873,958 | 12,087,574 | 14,873,958 | 14,873,958 | |||
| Letters of National Estate in pesos adjusted by CER to discount - Maturity: 04-18-2022 | 5934 | 1 | 10,987,332 | 11,497,423 | 11,051,015 | 11,051,015 | |||
| Letters of National Estate in pesos adjusted by CER to discount - Maturity: 02-17-2023 | 9111 | 1 | 8,462,505 | 8,462,505 | 8,462,505 | ||||
| Bonds of treasury of federal government in pesos adjusted by CER - Maturity: 08-13-2023 | 5497 | 1 | 7,132,839 | 3,593,518 | 7,132,839 | 7,132,839 | |||
| Other | 16,658,460 | 13,666,265 | 16,768,148 | 16,768,148 | |||||
| Subtotal local government securities | 190,088,229 | 144,411,332 | 190,261,600 | 190,261,600 | |||||
| Central Bank of Argentina Bills | |||||||||
| Liquidity letters of Central Bank of Argentina in pesos - Maturity: 04-21-2022 | 2 | 32,817,752 | 33,154,662 | 33,154,662 | |||||
| Liquidity letters of Central Bank of Argentina in pesos - Maturity: 04-05-2022 | 1 | 29,836,530 | 29,836,530 | 29,836,530 | |||||
| Liquidity letters of Central Bank of Argentina in pesos - Maturity: 04-12-2022 | 2 | 24,642,812 | 24,642,812 | 24,642,812 | |||||
| Liquidity letters of Central Bank of Argentina in pesos - Maturity: 04-28-2022 | 2 | 24,174,747 | 24,174,747 | 24,174,747 | |||||
| Liquidity letters of Central Bank of Argentina in pesos - Maturity: 04-26-2022 | 2 | 23,263,461 | 24,232,772 | 24,232,772 | |||||
| Liquidity letters of Central Bank of Argentina in pesos - Maturity: 04-13-2022 | 2 | 22,723,976 | 24,613,292 | 24,613,292 | |||||
| Liquidity letters of Central Bank of Argentina in pesos - Maturity: 04-07-2022 | 2 | 21,647,474 | 29,749,163 | 29,749,163 | |||||
| Liquidity letters of Central Bank of Argentina in pesos - Maturity: 04-19-2022 | 2 | 21,504,499 | 21,504,499 | 21,504,499 | |||||
| Liquidity letters of Central Bank of Argentina in pesos - Maturity: 01-04-2022 | 24,979,102 | ||||||||
| Liquidity letters of Central Bank of Argentina in pesos - Maturity: 01-27-2022 | 21,913,545 | ||||||||
| Other | 107,446,088 | ||||||||
| Subtotal Central Bank of Argentina Bills | 200,611,251 | 154,338,735 | 211,908,477 | 211,908,477 | |||||
| Total Other debt securities measured at fair value through other comprehensive income | 390,699,480 | 298,750,067 | 402,170,077 | 402,170,077 | |||||
| Measured at amortized cost | |||||||||
| - Local | |||||||||
| Government securities | |||||||||
| Federal government bonds in pesos 22% - Maturity: 05-21-2022 | 5496 | 27,060,313 | 2 | 27,255,448 | 26,400,547 | 27,255,448 | 27,255,448 | ||
| Discount bonds denominated in pesos at 5.83% - Maturity: 12-31-2033 | 45696 | 498,967 | 1 | 318,631 | 308,582 | 318,631 | 318,631 | ||
| Treasury bills of Province of Neuquén Series 1 Class 1 - Maturity: 04-07-2022 | 42382 | 315,432 | 2 | 311,098 | 361,858 | 311,098 | 311,098 | ||
| Debt securities of Province of Río Negro in pesos - Maturity: 04-12-2022 | 42385 | 221,838 | 2 | 218,147 | 253,740 | 218,147 | 218,147 | ||
| Treasury bills of Province of Río Negro Series 2 Class 1 - Maturity: 06-15-2022 | 42479 | 196,011 | 2 | 193,359 | 224,714 | 193,359 | 193,359 | ||
| Treasury bills of Province of Neuquén Series 4 Class 1 - Maturity: 02-28-2022 | 42426 | 53,224 | |||||||
| Subtotal local government securities | 28,296,683 | 27,602,665 | 28,296,683 | 28,296,683 | |||||
| Private securities | |||||||||
| Corporate Bonds YPF SA Class 043 -Maturity: 10-21-2023 | 50939 | 80,366 | 2 | 64,617 | 64,657 | 64,617 | 64,617 | ||
| Debt Securities in Financial Trusts Red Surcos Series 020 Class A - Maturity: 07-15-2022 | 55767 | 49,304 | 2 | 47,230 | 50,024 | 47,230 | 47,230 | ||
| Debt Securities in Financial Trusts Accicom Loans Personal Series 11 Class A - Maturity: 12-20-2022 | 55645 | 16,135 | 3 | 13,607 | 22,469 | 13,607 | 13,607 | ||
| Debt Securities in Financial Trusts Secubono Series 211 Class A - Maturity: 07-28-2022 | 55735 | 7,207 | 3 | 5,395 | 15,199 | 5,395 | 5,395 | ||
| Debt Securities in Financial Trusts Secubono Series 210 Class A - Maturity: 06-28-2022 | 55661 | 7,813 | 3 | 4,786 | 21,598 | 4,786 | 4,786 | ||
| Corporate Bonds Banco de la Ciudad de Buenos Aires Class 016 -Maturity: 12-05-2022 | 92655 | 3,101 | 1 | 2,782 | 4,180 | 2,782 | 2,782 | ||
| Debt Securities in Financial Trusts Secubono Series 209 Class A - Maturity: 05-30-2022 | 55616 | 931 | 2 | 948 | 35,840 | 948 | 948 | ||
| Corporate Bonds Santander Río Bank S.A. Class 021 -Maturity: 01-26-2022 | 53219 | 30,934 | |||||||
| Debt Securities in Financial Trusts Secubono Series 208 Class A - Maturity: 04-28-2022 | 55519 | 30,314 | |||||||
| Debt Securities in Financial Trusts Confibono Series 059 Class A - Maturity: 03-21-2022 | 55570 | 24,419 | |||||||
| Other | 6,962 | ||||||||
| Subtotal local private securities | 139,365 | 306,596 | 139,365 | 139,365 | |||||
| Total Other debt securities measured at cost amortized | 28,436,048 | 27,909,261 | 28,436,048 | 28,436,048 | |||||
| TOTAL OTHER DEBT SECURITIES | 419,135,528 | 326,659,328 | 430,606,125 | 430,606,125 | |||||
| - 106 - | Delfín Jorge Ezequiel Carballo<br> Chairperson | ||||||||
| --- | --- | ||||||||
| EXHIBIT A | |||||||||
| --- | |||||||||
| (continued) | |||||||||
| DETAIL OF GOVERNMENT AND PRIVATE SECURITIES | |||||||||
| AS OF MARCH 31, 2022 AND DECEMBER 31, 2021 | |||||||||
| (Translation of the Financial statements originally issued in Spanish – See Note 41) | |||||||||
| (Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of March 31, 2022, except as otherwise indicated) | |||||||||
| **** | **** | Holdings | Position | ||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | |
| **** | **** | 03/31/2022 | 12/31/2021 | 03/31/2022 | |||||
| Name | Identification | Fair Value | Fair value level | Book amounts | Book amounts | Position without options | Options | Final position | |
| Equity Instruments | |||||||||
| Measured at fair value through profit or loss | |||||||||
| - Local | |||||||||
| Mercado Abierto Electrónico SA | 80022 | 3 | 295,796 | 238,935 | 295,796 | 295,796 | |||
| C.O.E.L.S.A | 80023 | 3 | 37,595 | 43,636 | 37,595 | 37,595 | |||
| Matba Rofex SA | 80030 | 3 | 33,868 | 36,444 | 33,868 | 33,868 | |||
| Sedesa | 80016 | 3 | 15,314 | 17,778 | 15,314 | 15,314 | |||
| AC Inversora SA | 80024 | 3 | 10,178 | 11,814 | 10,178 | 10,178 | |||
| Provincanje SA | 80026 | 3 | 8,857 | 10,280 | 8,857 | 8,857 | |||
| Mercado a Término Rosario SA | 80020 | 3 | 7,414 | 8,605 | 7,414 | 7,414 | |||
| San Juan Tennis Club SA | 80017 | 3 | 437 | 507 | 437 | 437 | |||
| Argencontrol SA | 80019 | 3 | 407 | 472 | 407 | 407 | |||
| Garantizar SGR | 80025 | 3 | 10 | 12 | 10 | 10 | |||
| Other | 1 | 2,079,688 | 1 | 1 | |||||
| Subtotal local | 409,877 | 2,448,171 | 409,877 | 409,877 | |||||
| - Foreign | |||||||||
| Banco Latinoamericano de Comercio Exterior SA | 1 | 12,628 | 14,459 | 12,628 | 12,628 | ||||
| Sociedad de Telecomunicaciones Financieras Interbancarias Mundiales | 3 | 3,002 | 3,227 | 3,002 | 3,002 | ||||
| Subtotal foreign | 15,630 | 17,686 | 15,630 | 15,630 | |||||
| Total measured at fair value through profit or loss | 425,507 | 2,465,857 | 425,507 | 425,507 | |||||
| TOTAL EQUITY INSTRUMENTS | 425,507 | 2,465,857 | 425,507 | 425,507 | |||||
| TOTAL GOVERNMENT AND PRIVATE SECURITIES | 446,765,189 | 361,969,303 | 461,598,689 | 461,598,689 | |||||
| - 107 - | Delfín Jorge Ezequiel Carballo<br> Chairperson | ||||||||
| --- | --- | ||||||||
| EXHIBIT B | |||||||||
| --- | |||||||||
| CLASSIFICATION OF LOANS AND OTHER FINANCING | |||||||||
| --- | |||||||||
| BY SITUATION AND COLLATERAL RECEIVED | |||||||||
| AS OF MARCH 31, 2022 AND DECEMBER 31, 2021 | |||||||||
| (Translation of the Financial statements originally issued in Spanish – See Note 41) | |||||||||
| (Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of March 31, 2022, except as otherwise indicated) | |||||||||
| COMMERCIAL | 03/31/2022 | 12/31/2021 | |||||||
| --- | --- | --- | --- | --- | |||||
| In normal situation | 79,282,201 | 98,968,681 | |||||||
| With senior “A” collateral and counter-collateral | 9,535,041 | 13,306,645 | |||||||
| With senior “B” collateral and counter-collateral | 15,278,760 | 18,766,384 | |||||||
| Without senior collateral or counter-collateral | 54,468,400 | 66,895,652 | |||||||
| Subject to special monitoring | 1,148,722 | 2,473,689 | |||||||
| In observation | |||||||||
| With senior “A” collateral and counter-collateral | 298 | 1,711 | |||||||
| With senior “B” collateral and counter-collateral | 777,204 | 2,046,627 | |||||||
| Without senior collateral or counter-collateral | 371,220 | 425,351 | |||||||
| Troubled | 1,884,378 | 869,669 | |||||||
| With senior “B” collateral and counter-collateral | 1,256,530 | 127,804 | |||||||
| Without senior collateral or counter-collateral | 627,848 | 741,865 | |||||||
| With high risk of insolvency | 359,104 | 134,011 | |||||||
| With senior “A” collateral and counter-collateral | 114,696 | 117,222 | |||||||
| With senior “B” collateral and counter-collateral | 125,448 | 8,003 | |||||||
| Without senior collateral or counter-collateral | 118,960 | 8,786 | |||||||
| Subtotal Commercial | 82,674,405 | 102,446,050 | |||||||
| - 108 - | Delfín Jorge Ezequiel Carballo<br> Chairperson | ||||||||
| --- | --- | ||||||||
| EXHIBIT B | |||||||||
| --- | |||||||||
| (continued) | |||||||||
| CLASSIFICATION OF LOANS AND OTHER FINANCING | |||||||||
| --- | |||||||||
| BY SITUATION AND COLLATERAL RECEIVED | |||||||||
| AS OF MARCH 31, 2022 AND DECEMBER 31, 2021 | |||||||||
| (Translation of the Financial statements originally issued in Spanish – See Note 41) | |||||||||
| (Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of March 31, 2022, except as otherwise indicated) | |||||||||
| CONSUMER AND MORTGAGE | 03/31/2022 | 12/31/2021 | |||||||
| --- | --- | --- | |||||||
| Performing | 299,776,366 | 317,178,571 | |||||||
| With senior “A” collateral and counter-collateral | 17,516,854 | 22,172,400 | |||||||
| With senior “B” collateral and counter-collateral | 23,409,667 | 26,959,767 | |||||||
| Without senior collateral or counter-collateral | 258,849,845 | 268,046,404 | |||||||
| Low risk | 2,176,978 | 2,244,755 | |||||||
| With senior “A” collateral and counter-collateral | 93,013 | 72,928 | |||||||
| With senior “B” collateral and counter-collateral | 93,962 | 133,748 | |||||||
| Without senior collateral or counter-collateral | 1,990,003 | 2,038,079 | |||||||
| Low risk - in special treatment | 21,940 | 72,331 | |||||||
| With senior “B” collateral and counter-collateral | 23,735 | ||||||||
| Without senior collateral or counter-collateral | 21,940 | 48,596 | |||||||
| Medium risk | 1,511,984 | 1,683,797 | |||||||
| With senior “A” collateral and counter-collateral | 40,072 | 10,704 | |||||||
| With senior “B” collateral and counter-collateral | 42,412 | 69,506 | |||||||
| Without senior collateral or counter-collateral | 1,429,500 | 1,603,587 | |||||||
| High risk | 1,799,129 | 1,928,464 | |||||||
| With senior “A” collateral and counter-collateral | 24,047 | 24,586 | |||||||
| With senior “B” collateral and counter-collateral | 120,290 | 130,850 | |||||||
| Without senior collateral or counter-collateral | 1,654,792 | 1,773,028 | |||||||
| Irrecoverable | 787,689 | 910,964 | |||||||
| With senior “A” collateral and counter-collateral | 26,822 | 22,267 | |||||||
| With senior “B” collateral and counter-collateral | 121,973 | 221,716 | |||||||
| Without senior collateral or counter-collateral | 638,894 | 666,981 | |||||||
| Subtotal consumer and mortgage | 306,074,086 | 324,018,882 | |||||||
| Total | 388,748,491 | 426,464,932 | |||||||
| - 109 - | Delfín Jorge Ezequiel Carballo<br> Chairperson | ||||||||
| --- | --- | ||||||||
| EXHIBIT B | |||||||||
| --- | |||||||||
| (continued) | |||||||||
| CLASSIFICATION OF LOANS AND OTHER FINANCING | |||||||||
| --- | |||||||||
| BY SITUATION AND COLLATERAL RECEIVED | |||||||||
| AS OF MARCH 31, 2022 AND DECEMBER 31, 2021 | |||||||||
| (Translation of the Financial statements originally issued in Spanish – See Note 41) | |||||||||
| (Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of March 31, 2022, except as otherwise indicated) |
This exhibit discloses the contractual figures as established by the BCRA. The reconciliation with the separated statement of financial position is listed below:
| 03/31/2022 | 12/31/2021 | |||||||
|---|---|---|---|---|---|---|---|---|
| Loans and other financings | 375,447,821 | 410,752,790 | ||||||
| Added: | ||||||||
| Allowances for loans and other financings | 9,883,857 | 11,178,010 | ||||||
| Adjustment amortized cost and fair value | 728,882 | 1,311,004 | ||||||
| Debt securities of financial trust - Measured at amortized cost | 71,973 | 206,841 | ||||||
| Corporate bonds | 68,008 | 100,385 | ||||||
| Subtract: | ||||||||
| Interest and other accrued items receivable from financial assets with impaired credit value | (125,064 | ) | (114,771 | ) | ||||
| Guarantees provided and contingent liabilities | 2,673,014 | 3,030,673 | ||||||
| Total computable items | 388,748,491 | 426,464,932 | ||||||
| - 110 - | Delfín Jorge Ezequiel Carballo<br> Chairperson | |||||||
| --- | --- | |||||||
| EXHIBIT C | ||||||||
| --- | ||||||||
| CONCENTRATION OF LOANS AND FINANCING FACILITIES | ||||||||
| --- | ||||||||
| AS OF MARCH 31, 2022 AND DECEMBER 31, 2021 | ||||||||
| (Translation of the Financial statements originally issued in Spanish – See Note 41) | ||||||||
| (Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of March 31, 2022, except as otherwise indicated) | ||||||||
| **** | 03/31/2022 | 12/31/2021 | ||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Number of customers | Cut off balance | % of total portfolio | Cut off balance | % of total portfolio | ||||
| 10 largest customers | 19,609,620 | 5.04 | 21,627,487 | 5.07 | ||||
| 50 next largest customers | 27,138,245 | 6.98 | 35,362,875 | 8.29 | ||||
| 100 next largest customers | 20,282,431 | 5.22 | 24,736,882 | 5.80 | ||||
| Other customers | 321,718,195 | 82.76 | 344,737,688 | 80.84 | ||||
| Total (1) | 388,748,491 | 100.00 | 426,464,932 | 100.00 |
(1) See reconciliation in Exhibit B.
| - 111 - | Delfín Jorge Ezequiel Carballo<br> Chairperson | |||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| EXHIBIT D | ||||||||||||||||
| --- | ||||||||||||||||
| BREAKDOWN OF LOANS AND OTHER FINANCING BY TERMS | ||||||||||||||||
| AS OF MARCH 31, 2022 | ||||||||||||||||
| (Translation of the Financial statements originally issued in Spanish – See Note 41) | ||||||||||||||||
| (Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of March 31, 2022, except as otherwise indicated) | ||||||||||||||||
| **** | **** | Remaining terms to maturity | **** | |||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Item | Matured | Up to 1<br><br> month | Over 1<br><br> month and<br><br> up to 3<br><br> months | Over 3 <br><br>months and<br><br> up to 6<br><br> months | Over 6<br><br> months and<br><br> up to 12<br><br> months | Over 12 <br><br>months and<br><br> up to 24<br><br> months | Over 24 <br><br>months | Total | ||||||||
| Non-financial government sector | 464,049 | 369,170 | 443,227 | 1,294,494 | 2,570,940 | |||||||||||
| Financial sector | 13,933 | 27,238 | 59,450 | 142,779 | 714,436 | 76,221 | 1,034,057 | |||||||||
| Non-financial private sector and foreign residents | 1,792,239 | 152,131,938 | 45,088,379 | 50,083,122 | 62,738,114 | 82,585,837 | 121,255,592 | 515,675,221 | ||||||||
| Total | 1,792,239 | 152,609,920 | 45,484,787 | 50,585,799 | 64,175,387 | 83,300,273 | 121,331,813 | 519,280,218 | ||||||||
| BREAKDOWN OF LOANS AND OTHER FINANCING BY TERMS | ||||||||||||||||
| --- | ||||||||||||||||
| AS OF DECEMBER 31, 2021 | ||||||||||||||||
| (Translation of the Financial statements originally issued in Spanish – See Note 41) | ||||||||||||||||
| (Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of March 31, 2022, except as otherwise indicated) | ||||||||||||||||
| **** | **** | Remaining terms to maturity | **** | |||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Item | Matured | Up to 1 <br><br>month | Over 1<br><br> month and<br><br> up to 3<br><br> months | Over 3<br><br> months and<br><br> up to 6<br><br> months | Over 6<br><br> months and<br><br> up to 12<br><br> months | Over 12<br><br> months and<br><br> up to 24<br><br> months | Over 24<br><br> months | Total | ||||||||
| Non-financial government sector | 269,124 | 724,205 | 565,203 | 1,428,391 | 554,519 | 3,541,442 | ||||||||||
| Financial sector | 296,817 | 773,176 | 43,433 | 150,733 | 846,095 | 155,605 | 2,265,859 | |||||||||
| Non-financial private sector and foreign residents | 1,753,411 | 157,994,352 | 48,379,179 | 55,913,428 | 74,266,204 | 87,681,280 | 133,628,907 | 559,616,761 | ||||||||
| Total | 1,753,411 | 158,560,293 | 49,876,560 | 56,522,064 | 75,845,328 | 89,081,894 | 133,784,512 | 565,424,062 | ||||||||
| This exhibit disclosures contractual future cash flows that include interests and charges to be accrued until maturity of the contracts. | ||||||||||||||||
| --- | ||||||||||||||||
| - 112 - | Delfín Jorge Ezequiel Carballo<br> Chairperson | |||||||||||||||
| --- | --- |
EXHIBIT F
CHANGE OF PROPERTY, PLANT AND EQUIPMENT
AS OF MARCH 31, 2022
(Translation of the Financial statements originally issued in Spanish – See Note 41)
(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of March 31, 2022, except as otherwise indicated)
| Original<br><br> value at<br><br> beginning | Total life | Depreciation<br> of the period | Residual<br><br> value at the | ||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Item | of<br> fiscal<br><br> year | estimated<br><br> in years | Increases | Decreases | Transfers | Accumulated | Transfers | Decrease | Of<br> the<br><br> period | At<br> the end | end<br> of the<br><br> period | ||||||||||||
| Cost | |||||||||||||||||||||||
| Real property | 55,630,829 | 50 | 10,739 | 42,713 | 5,591,905 | 297,002 | 5,888,907 | 49,795,374 | |||||||||||||||
| Furniture and facilities | 7,582,511 | 10 | 40,766 | 294 | 49,071 | 3,715,390 | 10 | 163,307 | 3,878,687 | 3,793,367 | |||||||||||||
| Machinery and equipment | 10,897,482 | 5 | 170,872 | 181 | 174,000 | 7,521,077 | 352 | 39 | 381,319 | 7,902,709 | 3,339,464 | ||||||||||||
| Vehicles | 1,517,395 | 5 | 27,726 | 6,439 | (3,169 | ) | 1,248,914 | (352 | ) | 3,938 | 34,434 | 1,279,058 | 256,455 | ||||||||||
| Work in progress | 1,841,103 | 271,374 | (262,606 | ) | 1,849,871 | ||||||||||||||||||
| Right of use real property | 4,358,508 | 5 | 111,927 | (9 | ) | 2,436,677 | 203,586 | 2,640,263 | 1,830,163 | ||||||||||||||
| Total property, plant and<br> equipment | 81,827,828 | 633,404 | 6,914 | 20,513,963 | 3,987 | 1,079,648 | 21,589,624 | 60,864,694 |
CHANGE OF PROPERTY, PLANT AND EQUIPMENT
AS OF DECEMBER 31, 2021
(Translation of the Financial statements originally issued in Spanish – See Note 41)
(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of March 31, 2022, except as otherwise indicated)
| Original<br><br> value at<br><br> beginning | Total life | Depreciation<br> for the fiscal year | Residual<br><br> value at the | ||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Item | of<br> fiscal<br><br> year | estimated<br><br> in years | Increases | Decreases | Transfers<br><br> (1) | Accumulated | Transfers<br><br> (1) | Decrease | For<br> the<br><br> fiscal year | At<br> the end | end<br> of the<br><br> fiscal year | ||||||||||||
| Cost | |||||||||||||||||||||||
| Real property | 53,391,131 | 50 | 346,474 | 101,446 | 1,994,670 | 4,372,422 | 114,056 | 12,829 | 1,118,256 | 5,591,905 | 50,038,924 | ||||||||||||
| Furniture and facilities | 6,873,818 | 10 | 216,772 | 1,682 | 493,603 | 3,071,023 | 156 | 565 | 644,776 | 3,715,390 | 3,867,121 | ||||||||||||
| Machinery and equipment | 9,600,319 | 5 | 740,166 | 31,138 | 588,135 | 6,036,405 | (817 | ) | 773 | 1,486,262 | 7,521,077 | 3,376,405 | |||||||||||
| Vehicles | 1,458,726 | 5 | 141,241 | 86,306 | 3,734 | 1,198,117 | 207 | 75,522 | 126,112 | 1,248,914 | 268,481 | ||||||||||||
| Work in progress | 1,469,063 | 2,557,869 | (2,185,829 | ) | 1,841,103 | ||||||||||||||||||
| Right of use real property | 3,616,285 | 5 | 732,948 | 9,363 | 18,638 | 1,564,623 | 847 | 4,982 | 876,189 | 2,436,677 | 1,921,831 | ||||||||||||
| Total property, plant and<br> equipment | 76,409,342 | 4,735,470 | 229,935 | 912,951 | 16,242,590 | 114,449 | 94,671 | 4,251,595 | 20,513,963 | 61,313,865 | |||||||||||||
| (1) During<br> the fiscal year 2021, under this item transfers were made to Non-current assets held for sale. | |||||||||||||||||||||||
| --- | |||||||||||||||||||||||
| - 113 - | Delfín Jorge Ezequiel Carballo<br> Chairperson | ||||||||||||||||||||||
| --- | --- |
EXHIBIT F
(Continued)
CHANGE IN INVESTMENT PROPERTY
AS OF MARCH 31, 2022
(Translation of the Financial statements originally issued in Spanish – See Note 41)
(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of March 31, 2022, except as otherwise indicated)
| Original<br><br> Value at<br><br> beginning | Useful life | Depreciation<br> for the fiscal year | Residual<br><br> value at | |||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Item | of<br> fiscal<br><br> year | estimated<br><br> in years | Increases | Decreases | Transfers | Accumulated | Transfers | Decrease | Of<br> the<br><br> period | At<br> the<br><br> end | the end of<br> <br><br> the period | |||||||
| Cost | ||||||||||||||||||
| Leased properties | 268,131 | 50 | 9,686 | 785 | 10,471 | 257,660 | ||||||||||||
| Other investment<br> properties | 295,351 | 50 | 18,383 | 11,884 | 22,969 | 386 | 23,355 | 278,495 | ||||||||||
| Total<br> investment property | 563,482 | 18,383 | 11,884 | 32,655 | 1,171 | 33,826 | 536,155 |
CHANGE IN INVESTMENT PROPERTY
AS OF DECEMBER 31, 2021
(Translation of the Financial statements originally issued in Spanish – See Note 41)
(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of March 31, 2022, except as otherwise indicated)
| Original<br><br> Value at<br><br> beginning | Useful life | Depreciation<br> for the fiscal year | Residual<br><br> value at<br><br> the end of | ||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Item | of<br> fiscal<br><br> year | estimated<br><br> in years | Increases | Decreases | Transfers | Accumulated | Transfers | Decrease | For the fiscal<br> year | At<br> the<br><br> end | the<br> fiscal<br><br> year | ||||||||||||
| Cost | |||||||||||||||||||||||
| Leased properties | 385,818 | 50 | (117,687 | ) | 63,343 | (57,577 | ) | 3,920 | 9,686 | 258,445 | |||||||||||||
| Other investment properties | 1,105,937 | 50 | 3,303 | 27,062 | (786,827 | ) | 73,806 | (56,479 | ) | 4,508 | 10,150 | 22,969 | 272,382 | ||||||||||
| Total investment property | 1,491,755 | 3,303 | 27,062 | (904,514 | ) | 137,149 | (114,056 | ) | 4,508 | 14,070 | 32,655 | 530,827 | |||||||||||
| - 114 - | Delfín Jorge Ezequiel Carballo<br> Chairperson | ||||||||||||||||||||||
| --- | --- |
EXHIBIT G
CHANGE IN INTANGIBLE ASSETS
AS OF MARCH 31, 2022
(Translation of the Financial statements originally issued in Spanish – See Note 41)
(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of March 31, 2022, except as otherwise indicated)
| Original<br><br> Value at<br><br>beginning | Useful life | Depreciation<br> of the period | Residual<br><br> value at the | ||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Item | of fiscal<br><br>year | estimated<br><br> in years | Increases | Decreases | Transfers | Accumulated | Transfers | Decrease | Of<br> the<br><br> period | At the end | end<br> of the<br><br> period | ||||||
| Cost | |||||||||||||||||
| Licenses | 5,815,645 | 5 | 45,384 | 3,557,542 | 256,183 | 3,813,725 | 2,047,304 | ||||||||||
| Other intangible<br> assets | 18,829,693 | 5 | 990,008 | 11,362,023 | 823,292 | 12,185,315 | 7,634,386 | ||||||||||
| Total<br> intangible assets | 24,645,338 | 1,035,392 | 14,919,565 | 1,079,475 | 15,999,040 | 9,681,690 |
CHANGE IN INTANGIBLE ASSETS
AS OF DECEMBER 31, 2021
(Translation of the Financial statements originally issued in Spanish – See Note 41)
(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of March 31, 2022, except as otherwise indicated)
| Original<br><br> Value at<br><br>beginning | Useful life | Depreciation<br> for the fiscal year | Residual<br><br> value at the | |||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Item | of fiscal<br><br>year | estimated<br><br> in years | Increases | Decreases | Transfers | Accumulated | Transfers | Decrease | For<br> the<br><br> fiscal year | At the end | end<br> of the<br><br> fiscal year | |||||||||||
| Cost | ||||||||||||||||||||||
| Licenses | 4,817,026 | 5 | 1,010,312 | (11,693 | ) | 2,498,870 | (393 | ) | 1,059,065 | 3,557,542 | 2,258,103 | |||||||||||
| Other intangible<br> assets | 15,099,506 | 5 | 3,730,270 | 83 | 8,478,541 | 2,883,482 | 11,362,023 | 7,467,670 | ||||||||||||||
| Total<br> intangible assets | 19,916,532 | 4,740,582 | 83 | (11,693 | ) | 10,977,411 | (393 | ) | 3,942,547 | 14,919,565 | 9,725,773 | |||||||||||
| - 115 - | Delfín Jorge Ezequiel Carballo<br> Chairperson | |||||||||||||||||||||
| --- | --- |
EXHIBIT H
DEPOSIT CONCENTRATION
AS OF MARCH 31, 2022 AND DECEMBER 31, 2021
(Translation of the Financial statements originally issued in Spanish – See Note 41)
(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of March 31, 2022, except as otherwise indicated)
| 03/31/2022 | 12/31/2021 | |||||||
|---|---|---|---|---|---|---|---|---|
| Number of customers | Outstanding<br><br> balance | % of total<br><br> portfolio | Outstanding<br><br> balance | % of total<br><br> portfolio | ||||
| 10 largest customers | 69,540,133 | 10.32 | 53,212,284 | 7.84 | ||||
| 50 next largest customers | 50,744,771 | 7.53 | 41,875,325 | 6.17 | ||||
| 100 next largest customers | 27,278,609 | 4.05 | 26,270,895 | 3.87 | ||||
| Other customers | 526,234,390 | 78.10 | 557,720,882 | 82.12 | ||||
| Total | 673,797,903 | 100.00 | 679,079,386 | 100.00 | ||||
| - 116 - | Delfín Jorge Ezequiel Carballo<br> Chairperson | |||||||
| --- | --- |
EXHIBIT I
BREAKDOWN OF FINANCIAL LIABILITIES FOR RESIDUAL TERMS
AS OF MARCH 31, 2022
(Translation of the Financial statements originally issued in Spanish – See Note 41)
(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of March 31, 2022, except as otherwise indicated)
| Remaining terms to maturity | ||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Item | Up to 1 <br><br>month | Over 1 <br><br>month and <br><br>up to 3 <br><br>months | Over 3 <br><br>months <br><br>and up to <br><br>6 months | Over 6 <br><br>months <br><br>and up to <br><br>12 months | Over 12<br><br> months<br><br> and up to <br><br>24 months | Over 24<br><br> months | Total | |||||||
| Deposits | 595,409,171 | 76,033,205 | 8,553,226 | 914,962 | 39,977 | 3,333 | 680,953,874 | |||||||
| From the non-financial government sector | 65,582,694 | 13,592,929 | 578,366 | 3,601 | 79,757,590 | |||||||||
| From the financial sector | 1,033,773 | 1,033,773 | ||||||||||||
| From the non-financial private sector and foreign residents | 528,792,704 | 62,440,276 | 7,974,860 | 911,361 | 39,977 | 3,333 | 600,162,511 | |||||||
| Derivative instruments | 7,317 | 136 | 7,453 | |||||||||||
| Repo transactions | 11,853,813 | 11,853,813 | ||||||||||||
| Other financial institutions | 11,853,813 | 11,853,813 | ||||||||||||
| Other financial liabilities | 46,791,135 | 199,067 | 162,190 | 278,610 | 387,187 | 487,647 | 48,305,836 | |||||||
| Financing received from the Central Bank of Argentina and other financial institutions | 1,977,417 | 16,880 | 8,086 | 7,501 | 2,169 | 2,012,053 | ||||||||
| Issued corporate bonds | 3,141,995 | 3,141,995 | ||||||||||||
| Subordinated corporate bonds | 1,474,458 | 1,474,458 | 2,948,915 | 53,238,065 | 59,135,896 | |||||||||
| Total | 656,038,853 | 80,865,741 | 8,723,502 | 2,675,531 | 3,378,248 | 53,729,045 | 805,410,920 |
This exhibit discloses contractual future cash flows that include interests and charges to be accrued until maturity of the contracts.
| - 117 - | Delfín Jorge Ezequiel Carballo<br> Chairperson |
|---|
EXHIBIT I
BREAKDOWN OF FINANCIAL LIABILITIES FOR RESIDUAL TERMS
AS OF DECEMBER 31, 2021
(Translation of the Financial statements originally issued in Spanish – See Note 41)
(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of March 31, 2022, except as otherwise indicated)
| Remaining terms to maturity | ||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Item | Up to 1 <br><br>month | Over 1 <br><br>month and <br><br>up to 3 <br><br>months | Over 3 <br><br>months <br><br>and up to 6<br><br> months | Over 6 <br><br>months <br><br>and up to <br><br>12 months | Over 12<br><br> months <br><br>and up to <br><br>24 months | Over 24<br><br> months | Total | |||||||
| Deposits | 615,893,172 | 60,647,061 | 7,477,046 | 638,498 | 50,220 | 1,467 | 684,707,464 | |||||||
| From the non-financial government sector | 62,044,536 | 2,452,599 | 1,373,403 | 3,025 | 65,873,563 | |||||||||
| From the financial sector | 1,115,653 | 1,115,653 | ||||||||||||
| From the non-financial private sector and foreign residents | 552,732,983 | 58,194,462 | 6,103,643 | 635,473 | 50,220 | 1,467 | 617,718,248 | |||||||
| Derivative instruments | 2,939 | 2,939 | ||||||||||||
| Other financial liabilities | 66,821,644 | 202,381 | 180,325 | 296,078 | 436,269 | 577,623 | 68,514,320 | |||||||
| Financing received from the Central Bank of Argentina and other financial institutions | 272,804 | 212,352 | 15,691 | 9,655 | 6,644 | 517,146 | ||||||||
| Issued corporate bonds | 3,646,904 | 3,646,904 | ||||||||||||
| Subordinated corporate bonds | 1,584,509 | 1,584,510 | 3,169,019 | 57,211,700 | 63,549,738 | |||||||||
| Total | 682,987,620 | 61,061,794 | 12,907,414 | 2,528,741 | 3,662,152 | 57,790,790 | 820,938,511 |
This exhibit discloses contractual future cash flows that include interests and charges to be accrued until maturity of the contracts.
| - 118 - | Delfín Jorge Ezequiel Carballo<br> Chairperson |
|---|
EXHIBIT J
CHANGES IN PROVISIONS
AS OF MARCH 31, 2022
(Translation of the Financial statements originally issued in Spanish – See Note 41)
(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of March 31, 2022, except as otherwise indicated)
| Amounts at<br><br> beginning of | Decreases | Monetary <br><br>effects <br><br>generated by | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Item | fiscal year | Increases | Reversals | Charge off | provisions | 03/31/2022 | |||||
| Provisions for eventual commitments | 386,446 | 104,743 | (60,928 | ) | 430,261 | ||||||
| For Administrative, disciplinary and criminal penalties | 580 | (80 | ) | 500 | |||||||
| Other | 1,508,873 | 320,244 | 42,205 | (226,706 | ) | 1,560,206 | |||||
| Total Provisions | 1,895,899 | 424,987 | 42,205 | (287,714 | ) | 1,990,967 |
CHANGES IN PROVISIONS
AS OF DECEMBER 31, 2021
(Translation of the Financial statements originally issued in Spanish – See Note 41)
(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of March 31, 2022, except as otherwise indicated)
| Amounts at<br><br> beginning of | Decreases | Monetary <br><br>effects <br><br>generated by | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Item | fiscal year | Increases | Reversals | Charge off | provisions | 12/31/2021 | ||||||
| Provisions for eventual commitments | 30,146 | 419,688 | 1,475 | (61,913 | ) | 386,446 | ||||||
| For Administrative, disciplinary and criminal penalties | 1,258 | 48,321 | 292 | 48,257 | (450 | ) | 580 | |||||
| Other | 2,254,088 | 1,690,235 | 1,742,079 | (693,371 | ) | 1,508,873 | ||||||
| Total Provisions | 2,285,492 | 2,158,244 | 292 | 1,791,811 | (755,734 | ) | 1,895,899 | |||||
| - 119 - | Delfín Jorge Ezequiel Carballo<br> Chairperson | |||||||||||
| --- | --- |
EXHIBIT K
COMPOSITION OF CAPITAL STOCK
AS OF MARCH 31, 2022
(Translation of the Financial statements originally issued in Spanish – See Note 41)
| Shares | Capital Stock | |||||||
|---|---|---|---|---|---|---|---|---|
| Class | Stock 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, 2021
(Translation of the Financial statements originally issued in Spanish – See Note 41)
| Shares | Capital Stock | |||||||
|---|---|---|---|---|---|---|---|---|
| Class | Stock number | Face value | Votes per <br> share | Issued<br> outstanding | Paid in | |||
| Registered common stock A | 11,235,670 | 1 | 5 | 11,236 | 11,236 | |||
| Registered common stock B | 628,177,738 | 1 | 1 | 628,177 | 628,177 | |||
| Total | 639,413,408 | 639,413 | 639,413 | |||||
| - 120 - | Delfín Jorge Ezequiel Carballo<br> Chairperson | |||||||
| --- | --- |
EXHIBIT L
FOREIGN CURRENCY AMOUNTS
AS OF MARCH 31, 2022 AND DECEMBER 31, 2021
(Translation of the Financial statements originally issued in Spanish – See Note 41)
(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of March 31, 2022, except as otherwise indicated)
| 03/31/2022 | 12/31/2021 | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total<br> parent<br><br> company | ||||||||||||
| and local | Total per currency | |||||||||||
| Item | branches | US dollar | Euro | Real | Other | Total | ||||||
| Assets | ||||||||||||
| Cash and deposits in banks | 125,267,367 | 124,516,195 | 460,714 | 28,173 | 262,285 | 136,412,333 | ||||||
| Debt securities at fair value through profit or loss | 143,728 | 143,728 | 62,721 | |||||||||
| Other financial assets | 8,082,231 | 8,082,231 | 6,482,862 | |||||||||
| Loans and other financing | 16,083,344 | 16,083,344 | 17,180,192 | |||||||||
| From the non-financial private sector and foreign residents | 16,083,344 | 16,083,344 | 17,180,192 | |||||||||
| Other debt securities | 29,880,674 | 29,880,674 | 34,037,073 | |||||||||
| Financial assets delivered as guarantee | 2,205,218 | 2,205,218 | 2,366,295 | |||||||||
| Equity instruments at fair value through profit or loss | 15,630 | 15,630 | 17,686 | |||||||||
| Investments in subsidiaries, associates and joint ventures | 3,156,629 | 3,156,629 | 3,446,915 | |||||||||
| Total assets | 184,834,821 | 184,083,649 | 460,714 | 28,173 | 262,285 | 200,006,077 | ||||||
| Liabilities | ||||||||||||
| Deposits | 97,572,868 | 97,572,868 | 107,038,209 | |||||||||
| Non-financial government sector | 7,689,313 | 7,689,313 | 8,910,072 | |||||||||
| Financial sector | 876,729 | 876,729 | 882,799 | |||||||||
| Non-financial private sector and foreign residents | 89,006,826 | 89,006,826 | 97,245,338 | |||||||||
| Other financial liabilities | 4,994,446 | 4,804,268 | 175,479 | 14,699 | 5,551,815 | |||||||
| Financing from the Central Bank and other financial institutions | 160,298 | 160,298 | 320,826 | |||||||||
| Subordinated corporate bonds | 46,085,956 | 46,085,956 | 48,768,055 | |||||||||
| Other non-financial liabilities | 8,434 | 8,434 | 9,089 | |||||||||
| Total liabilities | 148,822,002 | 148,631,824 | 175,479 | 14,699 | 161,687,994 |
| - 121 - | Delfín Jorge Ezequiel Carballo<br> Chairperson |
| --- | --- |
EXHIBIT O
DERIVATIVEFINANCIAL INSTRUMENTS
AS OF MARCH 31, 2022
(Translation of the Financial statements originally issued in Spanish – See Note 41)
(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of March 31, 2022, except as otherwise indicated)
| Type<br> of contract | Purpose<br> of<br> the <br> transactions<br> performed | Underlying<br><br> asset | Type<br> of<br> settlement | Negotiation<br><br> environment or <br> counter-party | Originally<br><br> agreed <br> weighted<br> average term <br> (months) | Residual<br><br> weighted <br> average <br> term <br> (months) | Weighted<br><br> daily <br> average <br> term <br> settlement <br> of <br> differences <br> (days) | Amount<br> <br><br>(1) | ||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Futures (2) | Intermediation<br><br> - own account | Foreign<br> currency | Daily settlement<br> <br><br>of<br> differences | ROFEX (over-the-<br><br>counter<br> <br> electronic market) | 1 | 1 | 1 | 124,429 | ||||
| Forward (2) | Intermediation<br> - own account | Foreign<br> currency | Maturity <br><br>settlement<br> of differences | Over The Counter<br><br>-<br> Residents<br> in Argentina - Non<br><br> financial sector | 6 | 1 | 30 | 124,429 | ||||
| Repo transactions | Intermediation<br> - own account | Local government securities | With delivery of<br> underlying<br> asset | Other countries of <br><br>local | 1 | 1 | 13,415,360 | |||||
| Options | Intermediation<br> - own account | Other | With delivery of<br> underlying<br> asset | Over The Counter<br><br>-<br> Residents<br> in Argentina - Non<br><br> financial sector | 36 | 11 | 76,575 |
(1) Related to the valuation of the underlying traded, disclosed in absolute values.
(2) Related to compensated operations forward (OCT).
| - 122 - | Delfín Jorge Ezequiel Carballo<br> Chairperson |
| --- | --- |
EXHIBIT Q
BREAKDOWNOF STATEMENT OF INCOME
AS OF MARCH 31, 2022 AND 2021
(Translation of the Financial statements originally issued in Spanish – See Note 41)
(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of March 31, 2022, except as otherwise indicated)
| Net financial<br> Income/(Loss) | |||||
|---|---|---|---|---|---|
| Mandatory<br> measurement | |||||
| Items | Quarter ended 03/31/2022 | Quarter ended 03/31/2021 | |||
| For measurement of financial<br> assets at fair value through profit or loss | |||||
| Gain from government securities | 3,758,978 | 6,377,913 | |||
| Gain from private securities | 115,043 | 44,083 | |||
| Loss from other financial assets | (66,384 | ) | (3,999 | ) | |
| Gain from equity instruments<br> at fair value through profit or loss | 924,743 | 617,911 | |||
| Gain /<br> (Loss) from sales or decreases of financial assets at fair value (1) | 1,001,456 | (46,349 | ) | ||
| Total | 5,733,836 | 6,989,559 | |||
| (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. | ||||
| --- | --- |
| - 123 - | Delfín Jorge Ezequiel Carballo<br> Chairperson |
| --- | --- |
EXHIBIT Q
(Continued)
BREAKDOWNOF STATEMENT OF INCOME
AS OF MARCH 31, 2022 AND 2021
(Translation of the Financial statements originally issued in Spanish – See Note 41)
(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of March 31, 2022, except as otherwise indicated)
| Net financial income/(Loss) | |||||
|---|---|---|---|---|---|
| Interest and adjustment for the application of the effective interest rate of financial assets measured at amortized cost | **** | Quarter ended 03/31/2022 | **** | Quarter ended 03/31/2021 | **** |
| Interest income | |||||
| for cash and bank deposits | 2,834 | 4,076 | |||
| for government securities | 1,628,298 | 3,683,077 | |||
| for private securities | 25,125 | 160,042 | |||
| for loans and other financing | |||||
| Non-financial public sector | 276,274 | 716,055 | |||
| Financial sector | 92,140 | 260,615 | |||
| Non-financial private sector | |||||
| Overdrafts | 2,533,430 | 2,632,864 | |||
| Documents | 3,050,807 | 2,146,564 | |||
| Mortgage loans | 4,674,518 | 4,736,694 | |||
| Pledge loans | 518,273 | 171,620 | |||
| Personal loans | 13,803,376 | 14,341,473 | |||
| Credit cards | 5,021,640 | 4,181,070 | |||
| Financial leases | 45,701 | 17,226 | |||
| Other | 3,757,290 | 5,382,766 | |||
| for repo transactions | |||||
| Central Bank of Argentina | 397,356 | 3,222,952 | |||
| Other financial institutions | 34,836 | 22,373 | |||
| Total | 35,861,898 | 41,679,467 | |||
| Interest expenses | |||||
| for deposits | |||||
| Non-financial private sector | |||||
| Checking accounts | (430,670 | ) | (1,127,033 | ) | |
| Saving accounts | (393,055 | ) | (357,810 | ) | |
| Time deposits and investments accounts | (24,951,000 | ) | (29,766,230 | ) | |
| for Financing received from Central Bank of Argentina and other financial institutions | (44,526 | ) | (67,594 | ) | |
| for repo transactions | |||||
| Other financial institutions | (217,126 | ) | (84,560 | ) | |
| for other financial liabilities | (1,916 | ) | (8,328 | ) | |
| for issued corporate bonds | (111,772 | ) | (546,456 | ) | |
| for subordinated corporate bonds | (726,240 | ) | (1,030,655 | ) | |
| Total | (26,876,305 | ) | (32,988,666 | ) |
| - 124 - | Delfín Jorge Ezequiel Carballo<br> Chairperson |
| --- | --- |
EXHIBIT Q
(Continued)
BREAKDOWN OF STATEMENT OF INCOME
AS OF MARCH 31, 2022 AND 2021
(Translation of the Financial statements originally issued in Spanish – See Note 41)
(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of March 31, 2022, except as otherwise indicated)
| Interest and adjustment for the application<br><br> of the effective interest rate of financial | Income of the <br><br>period | Other<br><br> comprehensive<br><br> income | Income of the <br><br>period | Other<br><br> comprehensive<br><br> income | |||||
|---|---|---|---|---|---|---|---|---|---|
| assets measured at fair value through other<br><br> comprehensive income | Quarter ended<br><br> 03/31/2022 | Quarter ended<br><br> 03/31/2022 | Quarter ended<br><br> 03/31/2021 | Quarter ended<br><br> 03/31/2021 | |||||
| for debt government securities | 32,868,294 | (1,593,090 | ) | 28,192,975 | 644,897 | ||||
| Total | 32,868,294 | (1,593,090 | ) | 28,192,975 | 644,897 | ||||
| Income of the period | |||||||||
| --- | --- | --- | --- | --- | --- | --- | |||
| Items | Quarter ended <br> 03/31/2022 | Quarter ended<br> 03/31/2021 | |||||||
| Commissions income | |||||||||
| Commissions related to obligations | 6,277,786 | 5,420,546 | |||||||
| Commissions related to credits | 42,837 | 29,539 | |||||||
| Commissions related to loans commitments and financial guarantees | 563 | 299 | |||||||
| Commissions related to securities value | 95,453 | 72,137 | |||||||
| Commissions to credit cards | 3,808,748 | 3,556,597 | |||||||
| Commissions to insurances | 653,161 | 668,559 | |||||||
| Commissions related to trading and foreign exchange transactions | 251,288 | 245,603 | |||||||
| Total | 11,129,836 | 9,993,280 | |||||||
| Commissions expenses | |||||||||
| Commissions related to trading and foreign exchange transactions | (35,931 | ) | (18,203 | ) | |||||
| Other | |||||||||
| Commissions paid ATM exchange | (545,547 | ) | (576,821 | ) | |||||
| Checkbooks commissions and clearing houses | (187,739 | ) | (168,568 | ) | |||||
| Credit cards and foreign trade commissions | (106,471 | ) | (98,483 | ) | |||||
| Total | (875,688 | ) | (862,075 | ) |
| - 125 - | Delfín Jorge Ezequiel Carballo<br> Chairperson |
| --- | --- |
EXHIBIT R
VALUE ADJUSTMENT FOR CREDIT LOSSES - ALLOWANCES FOR UNCOLLECTIBILITY RISK
AS OF MARCH 31, 2022
(Translation of the Financial statements originally issued in Spanish – See Note 41)
(Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of March 31, 2022, except as otherwise indicated)
| Movements<br> between stages of the period | ||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| ECL<br> of remanent life of financial asset | ||||||||||||||||
| Item | Amounts<br> <br><br> at <br><br> beginning <br><br> of the <br><br> fiscal year | ECL of the next 12 months | Financial<br><br> instruments with a <br><br> significant increase <br><br> in credit risk | Financial<br><br> instruments with <br><br> impairment | Monetary<br> effect<br><br> generated by <br><br> provisions | 03/31/2022 | ||||||||||
| Other financial assets | 30,698 | 15,038 | (5,094 | ) | 40,642 | |||||||||||
| Loans and other financing | 11,178,010 | (25,119 | ) | (857,077 | ) | 1,150,669 | (1,562,626 | ) | 9,883,857 | |||||||
| Other<br> financial institutions | 4,238 | (731 | ) | (546 | ) | 2,961 | ||||||||||
| To the<br> non-financial private sector and foreign residents | ||||||||||||||||
| Overdrafts | 821,817 | 58,285 | (7,071 | ) | (60,977 | ) | (113,232 | ) | 698,822 | |||||||
| Documents | 1,116,118 | (71,141 | ) | 6,746 | (292 | ) | (150,902 | ) | 900,529 | |||||||
| Mortgage<br> loans | 2,319,281 | (32,786 | ) | (956,516 | ) | 1,016,422 | (322,621 | ) | 2,023,780 | |||||||
| Pledge<br> loans | 143,410 | (423 | ) | (1,529 | ) | (2,118 | ) | (19,626 | ) | 119,714 | ||||||
| Personal<br> loans | 2,879,187 | 84,539 | 25,741 | 202,696 | (416,158 | ) | 2,776,005 | |||||||||
| Credit<br> cards | 1,874,818 | 110,657 | 60,403 | 74,596 | (273,332 | ) | 1,847,142 | |||||||||
| Financial<br> leases | 16,968 | 4,848 | 20 | (1,819 | ) | (2,520 | ) | 17,497 | ||||||||
| Other | 2,002,173 | (178,367 | ) | 15,129 | (77,839 | ) | (263,689 | ) | 1,497,407 | |||||||
| Eventual commitments | 386,446 | 92,941 | 10,154 | (59,280 | ) | 430,261 | ||||||||||
| Other debt<br> securities | 630 | 77 | (91 | ) | 616 | |||||||||||
| Total<br> allowances | 11,595,784 | 82,937 | (846,923 | ) | 1,150,669 | (1,627,091 | ) | 10,355,376 |
VALUE ADJUSTMENT FOR CREDIT LOSSES - ALLOWANCES FOR UNCOLLECTIBILITY RISK
AS OF DECEMBER 31, 2021
(Translation of the Financial statements originally issued in Spanish – See Note 41) (Figures stated in thousands of pesos in terms of purchasing power of Argentine pesos as of March 31, 2022, except as otherwise indicated)
| Movements<br> between stages of the period | ||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| ECL<br> of remanent life of financial asset | ||||||||||||||||
| Item | Amounts<br> <br><br> at <br><br> beginning <br><br> of the <br><br> fiscal year | ECL of the next 12 months | Financial<br><br> instruments with a <br><br> significant increase <br><br> in credit risk | Financial<br><br> instruments with <br><br> impairment | Monetary<br> effect<br><br> generated by <br><br> provisions | 12/31/2021 | ||||||||||
| Other financial assets | 33,159 | 10,185 | (12,646 | ) | 30,698 | |||||||||||
| Loans and other financing | 17,561,267 | (2,831,257 | ) | 588,741 | 1,657,919 | (5,798,660 | ) | 11,178,010 | ||||||||
| Other financial institutions | 29,104 | (18,067 | ) | (6,799 | ) | 4,238 | ||||||||||
| To the non-financial private<br> sector and foreign residents | ||||||||||||||||
| Overdrafts | 1,201,389 | 141,104 | 79,480 | (303,267 | ) | (296,889 | ) | 821,817 | ||||||||
| Documents | 936,644 | 303,645 | 208,977 | 8,477 | (341,625 | ) | 1,116,118 | |||||||||
| Mortgage loans | 1,319,148 | 57,582 | 1,249,949 | 210,749 | (518,147 | ) | 2,319,281 | |||||||||
| Pledge loans | 235,370 | (3,274 | ) | (46,209 | ) | 39,897 | (82,374 | ) | 143,410 | |||||||
| Personal loans | 4,985,662 | (959,478 | ) | (386,404 | ) | 1,257,768 | (2,018,361 | ) | 2,879,187 | |||||||
| Credit cards | 5,937,211 | (2,055,304 | ) | (905,055 | ) | 524,073 | (1,626,107 | ) | 1,874,818 | |||||||
| Financial leases | 17,603 | 11,818 | (5 | ) | (7,491 | ) | (4,957 | ) | 16,968 | |||||||
| Other | 2,899,136 | (309,283 | ) | 388,008 | (72,287 | ) | (903,401 | ) | 2,002,173 | |||||||
| Eventual commitments | 30,146 | 357,766 | 52,869 | (54,335 | ) | 386,446 | ||||||||||
| Other debts securities | 2,353 | (1,256 | ) | (467 | ) | 630 | ||||||||||
| Total allowances | 17,626,925 | (2,464,562 | ) | 641,610 | 1,657,919 | (5,866,108 | ) | 11,595,784 |
| - 126 - | 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: July 15, 2022
| MACRO BANK INC. | |
|---|---|
| By: | /s/ Jorge Francisco Scarinci |
| Name: Jorge Francisco Scarinci | |
| Title: Chief Financial Officer |