Skip to main content
Equibles

6-K

Macro Bank Inc. (BMA)

6-K 2023-05-24 For: 2023-05-24
View Original
Added on April 10, 2026

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C.  20549

FORM 6-K

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16 UNDER THE

SECURITIES EXCHANGE ACT OF 1934

May 24, 2023

Commission File Number: 001-32827

MACROBANK INC.

(Translation of registrant’s name intoEnglish)

Av. Eduardo Madero 1182

Buenos Aires C1106ACY

Tel: 54 11 5222 6500

(Address of registrant’s principal executiveoffices)

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

Form 20-F x Form 40-F o

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

Yes o No x

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

Yes o No x

BANCO MACRO SA

Financial Statements as of December 31, 2022 together with the Independent Auditor’s Reports on Financial Statements

BANCO MACRO SA
FINANCIAL STATEMENTS AS OF DECEMBER 31, 2022
CONTENT
Cover sheet
Consolidated Financial Statements
Consolidated statement of financial position
Consolidated statement of income
Consolidated statement of other comprehensive income
Consolidated statement of changes in shareholders’ equity
Consolidated statement of cash flows
Notes to the consolidated 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: Derivative financial instruments
Note 6: Repo transactions
Note 7: Other financial assets
Note 8: Loans and other financing
Note 9: Loss allowance for expected credit losses on credit exposures not measured at fair value through profit or loss
Note 10: Financial assets delivered as guarantee
Note 11: Equity instruments at fair value through profit or loss – Prisma Medios de Pago SA
Note 12: Fair value quantitative and qualitative disclosures
Note 13: Business combinations
Note 14: Investment in associates and joint arrangements
Note 15: Other non-financial assets
Note 16: Related parties
Note 17: Deposits
Note 18: Other financial liabilities
Note 19: Leases
Note 20: Provisions
Note 21: Other non-financial liabilities
Note 22: Employee benefits payable
Note 23: Analysis of financial assets to be recovered and financial liabilities to be settled
Note 24: Disclosures by operating segment
Note 25: Income tax
Note 26: Commissions income
Note 27: Differences in quoted prices of gold and foreign currency
Note 28: Other operating income
Note 29: Employee benefits
Note 30: Administrative expenses
Note 31: Other operating expenses
BANCO MACRO SA
---
FINANCIAL STATEMENTS AS OF DECEMBER 31, 2022
CONTENT (contd.)
Notes to the consolidated Financial Statements (contd.)
Note 32: Additional disclosures in the statement of cash flows
Note 33: Capital stock
Note 34: Earnings per share – Dividends
Note 35: Deposit guarantee insurance
Note 36: Restricted assets
Note 37: Trust activities
Note 38: Compliance with CNV regulations
Note 39: Accounting items that identify the compliance with minimum cash requirements
Note 40: Penalties applied to the entity and summary proceedings initiated by the BCRA
Note 41: Corporate bonds issuance
Note 42: Off balance sheet transactions
Note 43: Tax and other claims
Note 44: Restriction on dividends distribution
Note 45: Capital management, corporate governance transparency policy and risk management
Note 46: Changes in the Argentine macroeconomic environment and financial and capital markets
Note 47: Events after reporting period
Note 48: Accounting principles – explanation added for translation into English
Consolidated exhibits
Exhibit A: Detail of government and private securities
Exhibit B: Classification of loans and other financing by situation and collateral received
Exhibit C: Concentration of loans and financing facilities
Exhibit D: Breakdown of loans and other financing by terms
Exhibit E: Detailed information on interest in other companies
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 N: Credit assistance to related parties
Exhibit P: Categories of financial assets and liabilities
Exhibit Q: Breakdown of statement of income
Exhibit R: Value adjustment for credit losses – Allowances for uncollectibility risk
Separate Financial Statements
---
Separate Financial Statements
Notes to the separate Financial Statements
Separated exhibits
BANCO MACRO SA
---
FINANCIAL STATEMENTS AS OF DECEMBER 31, 2022
CONTENT (contd.)
Earnings distribution proposal

BANCO MACRO SA

Corporate name: Banco Macro SA

Registered office: Avenida Eduardo Madero 1182 – AutonomousCity of Buenos Aires

Corporate purpose and main activity: Commercial bank

Central Bank of Argentina: Authorized as “Argentine privatebank” under No. 285

Registration with the public Registry of Commerce: Under No. 1154- By-laws Book No. 2, Folio 75 dated March 8, 1967

By-Laws expiry date: March 8, 2066

Registration with the IGJ (Superintendency of Corporations): UnderNo. 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.

CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS OF DECEMBER 31, 2022 AND 2021
(Translation of the Financial Statements originally issued in Spanish – See Note 48)
(Figures stated in thousands of pesos in constant currency as of December 31, 2022)
Items Notes Exhibits 12/31/2022 12/31/2021
--- --- --- --- --- --- ---
ASSETS
Cash and Deposits in Banks 12 P 250,089,093 335,692,114
Cash 27,612,616 51,862,712
Central Bank of Argentina 143,526,540 207,729,609
Other Local and Foreign Entities 78,937,819 76,087,274
Other 12,118 12,519
Debt Securities at fair value through profit or loss 12 A and P 211,054,112 63,125,824
Derivative Financial Instruments 5 and 12 P 42,899 2,524
Repo transactions 6 and 12 P 61,929,317 61,176,357
Other Financial Assets 7, 9 and 12 P and R 57,944,523 68,497,221
Loans and other financing 8, 9 and 12 B, C, D, P and R 598,601,030 686,328,426
Non-financial Public Sector 2,206,935 4,628,306
Other Financial Entities 927,272 2,941,876
Non-financial Private Sector and Foreign Residents 595,466,823 678,758,244
Other Debt Securities 9 and 12 A, P and R 737,506,031 557,069,190
Financial Assets delivered as guarantee 10, 12 and 36 P 30,620,278 34,993,147
Current Income Tax Assets 25 - 1,058,582
Equity Instruments at fair value through profit or loss 11 and 12 A and P 839,458 4,245,510
Investment in associates and joint arrangements 14 E 1,141,599 953,520
Property, plant and equipment F 101,863,737 102,991,484
Intangible Assets G 17,439,760 16,370,965
Deferred Income Tax Assets 25 73,569 93,092
Other Non-financial Assets 15 12,452,870 4,541,843
Non-current Assets held for sale 8,856,247 6,314,263
TOTAL ASSETS 2,090,454,523 1,943,454,062

Delfín Jorge Ezequiel Carballo Chairperson

- 1 -
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS OF DECEMBER 31, 2022 AND 2021
(Translation of the Financial Statements originally issued in Spanish – See Note 48)
(Figures stated in thousands of pesos in constant currency as of December 31, 2022)
Items Notes Exhibits 12/31/2022 12/31/2021
--- --- --- --- --- --- --- ---
LIABILITIES
Deposits 12 and 17 H, I and P 1,295,395,069 1,147,041,028
Non-financial Public Sector 109,952,253 109,868,280
Financial Sector 1,653,447 1,872,336
Non-financial Private Sector and Foreign Residents 1,183,789,369 1,035,300,412
Liabilities at fair value through profit or loss 12 I and P 526,027 3,170,711
Derivative Financial Instruments 5 and 12 I and P 2,371 4,933
Other Financial Liabilities 12 and 18 I and P 135,091,316 131,278,389
Financing received from the Central Bank of Argentina and other financial institutions 12 I and P 2,449,342 852,660
Issued Corporate Bonds 12 and 41 I and P 2,715,556 5,825,893
Current Income Tax Liabilities 25 10,849,439 684,304
Subordinated Corporate Bonds 12 and 41 I and P 72,129,837 81,762,819
Provisions 20 J and R 2,713,078 3,197,675
Deferred Income Tax Liabilities 25 13,278,200 11,087,721
Other Non-financial Liabilities 21 42,809,291 93,758,925
TOTAL LIABILITIES 1,577,959,526 1,478,665,058
SHAREHOLDERS’ EQUITY
Capital Stock 33 639,413 639,413
Non-capital contributions 12,429,781 12,429,781
Adjustments to Shareholders’ Equity 173,290,106 173,290,106
Earnings Reserved 282,844,496 237,309,036
Unappropriated Retained Earnings 136,606 (17,376,187 )
Accumulated Other Comprehensive Income 31,388 5,590,301
Net Income for the fiscal year 43,038,519 52,832,766
Net Shareholders’ Equity attributable to controlling interest 512,410,309 464,715,216
Net Shareholders’ Equity attributable to non-controlling interests 84,688 73,788
TOTAL SHAREHOLDERS’ EQUITY 512,494,997 464,789,004
TOTAL SHAREHOLDERS’ EQUITY AND LIABILITIES 2,090,454,523 1,943,454,062

The notes 1 to 48 to the consolidated Financial Statements and exhibits A to J, L, N and P to R are an integral part of the consolidated Financial Statements

Delfín Jorge Ezequiel Carballo

Chairperson

- 2 -
CONSOLIDATED STATEMENT OF INCOME
FOR THE FISCAL YEARS ENDED DECEMBER 31, 2022 AND 2021
(Translation of the Financial Statements originally issued in Spanish – See Note 48)
(Figures stated in thousands of pesos in constant currency as of December 31, 2022)
Items Notes Exhibits 12/31/2022 12/31/2021
--- --- --- --- --- --- --- --- ---
Interest income Q 612,465,374 439,126,515
Interest expense Q (307,140,282 ) (183,872,424 )
Net Interest Income 305,325,092 255,254,091
Commissions income 26 Q 75,402,581 72,042,451
Commissions expense Q (7,413,595 ) (6,878,052 )
Net Commissions Income 67,988,986 65,164,399
Subtotal (Net Interest income plus Net Commissions income) 373,314,078 320,418,490
Net gain from measurement of financial instruments at fair value through profit or loss Q 47,846,601 38,576,987
Profit from sold or derecognized assets at amortized cost 169,626 475,397
Differences in quoted prices of gold and foreign currency 27 62,273,582 9,053,376
Other operating income 28 21,176,536 15,259,712
Allowance for loan losses (6,558,455 ) (4,782,700 )
Net Operating Income 498,221,968 379,001,262
Employee benefits 29 (77,638,291 ) (76,906,728 )
Administrative expenses 30 (39,155,671 ) (39,137,679 )
Depreciation and amortization of fixed assets F and G (15,248,627 ) (13,880,389 )
Other operating expenses 31 (74,992,991 ) (66,692,124 )
Operating Income 291,186,388 182,384,342
(Loss) / Income from associates and joint arrangements 14 (113,516 ) 170,439
Loss on net monetary position (228,573,138 ) (126,481,993 )
Income before tax on continuing operations 62,499,734 56,072,788
Income tax on continuing operations 25.c) (19,454,138 ) (3,238,566 )
Net Income from continuing operations 43,045,596 52,834,222
Net Income for the fiscal year 43,045,596 52,834,222
Net Income for the fiscal year attributable to controlling interest 43,038,519 52,832,766
Net Income for the fiscal year attributable to non-controlling interest 7,077 1,456

Delfín Jorge Ezequiel Carballo

Chairperson

- 3 -
CONSOLIDATED EARNINGS PER SHARE
FOR THE FISCAL YEARS ENDED DECEMBER 31, 2022 AND 2021
(Translation of the Financial Statements originally issued in Spanish – See Note 48)
(Figures stated in thousands of pesos in constant currency as of December 31, 2022)
Items 12/31/2022 12/31/2021
--- --- --- --- ---
Net Profit attributable to Parent’s shareholders 43,038,519 52,832,766
Plus: Potential diluted earnings per common share - -
Net Profit attributable to Parent’s shareholders adjusted as per diluted earnings 43,038,519 52,832,766
Weighted average of outstanding common shares for the fiscal year 639,413 639,413
Plus: Weighted average of the number of additional common shares with dilution effects - -
Weighted average of outstanding common shares for the fiscal year adjusted as per dilution effect 639,413 639,413
Basic earnings per share (in pesos) 67.3094 82.6270

Delfín Jorge Ezequiel Carballo

Chairperson

- 4 -
CONSOLIDATED STATEMENT OF OTHER COMPREHENSIVE INCOME
FOR THE FISCAL YEARS ENDED DECEMBER 31, 2022 AND 2021
(Translation of the Financial Statements originally issued in Spanish – See Note 48)
(Figures stated in thousands of pesos in constant currency as of December 31, 2022)
Items Notes Exhibits 12/31/2022 12/31/2021
--- --- --- --- --- --- --- --- ---
Net Income for the fiscal year 43,045,596 52,834,222
Items of Other Comprehensive Income that will be reclassified to profit or loss
Foreign currency translation differences in Financial Statements conversion (718,989 ) (1,492,767 )
Foreign currency translation differences for the fiscal year (718,989 ) (1,492,767 )
Profit or loss from financial instruments measured at fair value through other comprehensive income (FVOCI) (IFRS 9(4.1.2)(a)) (4,839,924 ) 3,779,030
Profit or loss for the fiscal year from financial instruments at fair value through other comprehensive income (FVOCI) Q (3,077,630 ) 965,318
Adjustment for reclassification for the fiscal year (4,208,221 ) 5,164,359
Income tax 25.c) 2,445,927 (2,350,647 )
Total Other Comprehensive (Loss) / Income that will be reclassified to profit or loss (5,558,913 ) 2,286,263
Total Other Comprehensive (Loss) / Income (5,558,913 ) 2,286,263
Total Comprehensive Income for the fiscal year 37,486,683 55,120,485
Total Comprehensive Income attributable to controlling interest 37,479,606 55,119,029
Total Comprehensive Income attributable to non-controlling interest 7,077 1,456

The notes 1 to 48 to the consolidated Financial Statements and exhibits A to J, L, N and P to R are an integral part of the consolidated Financial Statements

Delfín Jorge Ezequiel Carballo

Chairperson

- 5 -
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY
FOR THE FISCAL YEAR ENDED DECEMBER 31, 2022
(Translation of the Financial Statements originally issued in Spanish – See Note 48)
(Figures stated in thousands of pesos in constant currency as of December 31, 2022)
Capital <br><br>stock Non-capital<br><br> Contributions Other Comprehensive<br><br> Income Earnings Reserved
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Changes Notes Outstanding<br><br> shares Additional<br><br> paid-in<br><br> capital Adjustments<br><br> to<br><br> Shareholders’<br><br> Equity Accumulated<br><br> foreign<br><br> currency<br><br> translation<br><br> difference in<br><br> Financial<br><br> Statements<br><br> conversion Other Legal Other Unappropriated<br><br> Retained<br><br> Earnings Total<br><br> controlling<br><br> interests Total<br> Non-<br><br> controlling<br><br> interests Total<br> <br><br> Equity
Restated<br> amount at the beginning of the fiscal year 639,413 12,429,781 173,290,106 1,169,053 4,421,248 94,354,253 142,954,783 35,456,579 464,715,216 73,788 464,789,004
Total<br> comprehensive income for the fiscal year
-<br> Net income for the fiscal year 43,038,519 43,038,519 7,077 43,045,596
- Other<br> comprehensive loss for the fiscal year (718,989 ) (4,839,924 ) (5,558,913 ) (5,558,913 )
Distribution<br> of unappropriated retained earnings as approved by Shareholders´ Meeting held on April 29, 2022
Legal reserve 7,091,317 (7,091,317 )
Reserve<br> for dividends pending authorization from the BCRA 34 38,444,143 (27,637,010 ) 10,807,133 10,807,133
Personal<br> property tax on business corporation (591,646 ) (591,646 ) (591,646 )
Other changes 3,823 3,823
Amount<br> at the end of the fiscal year 639,413 12,429,781 173,290,106 450,064 (418,676 ) 101,445,570 181,398,926 43,175,125 512,410,309 84,688 512,494,997
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY
---
FOR THE FISCAL YEAR ENDED DECEMBER 31, 2021
(Translation of the Financial Statements originally issued in Spanish – See Note 48)
(Figures stated in thousands of pesos in constant currency as of December 31, 2022)
Capital<br> <br><br> stock Non-capital<br><br> Contributions Other<br> Comprehensive<br><br> Income Earnings<br> Reserved
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Changes Notes Outstanding<br><br> shares Additional<br><br> paid-in <br><br> capital Adjustments<br> <br><br> to<br><br> Shareholders’ <br><br> Equity Accumulated<br><br> foreign<br><br> currency<br><br> translation<br><br> difference in<br><br> Financial<br><br> Statements<br><br> conversion Other Legal Other Unappropriated<br><br> Retained<br><br> Earnings Total<br><br> controlling<br><br> interests Total<br> Non-<br><br> controlling<br><br> interests Total<br> <br><br> Equity
Restated amount at<br> the beginning of the fiscal year 639,413 12,429,781 173,290,106 2,661,820 642,218 94,354,253 228,532,620 (77,162,594 ) 435,387,617 5,493 435,393,110
Total comprehensive income for<br> the fiscal year
-<br> Net income for the fiscal year 52,832,766 52,832,766 1,456 52,834,222
-<br> Other comprehensive income for the fiscal year (1,492,767 ) 3,779,030 2,286,263 2,286,263
Distribution<br> of unappropriated retained earnings as approved by Shareholders´ Meeting held on April 30, 2021
-<br> Cash dividends (25,011,252 ) (25,011,252 ) (25,011,252 )
-<br> Absorption of Accumulated loss
Facultative<br> reserve (1,300 ) 1,300
Facultative<br> reserve for future distribution of earnings (59,785,107 ) 59,785,107
Personal<br> property tax on business corporation (780,178 ) (780,178 ) (780,178 )
Other changes 66,839 66,839
Amount at<br> the end of the fiscal year 639,413 12,429,781 173,290,106 1,169,053 4,421,248 94,354,253 142,954,783 35,456,579 464,715,216 73,788 464,789,004

The notes 1 to 48 to the consolidated Financial Statements and exhibits A to J, L, N and P to R are an integral part of the consolidated Financial Statements.

Delfín Jorge Ezequiel Carballo

Chairperson

- 6 -
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE FISCAL YEARS ENDED DECEMBER 31, 2022 AND 2021
(Translation of the Financial Statements originally issued in Spanish – See Note 48)
(Figures stated in thousands of pesos in constant currency as of December 31, 2022)
Items Notes 12/31/2022 12/31/2021
--- --- --- --- --- --- --- ---
Cash flows from operating activities
Income for the fiscal year before income tax 62,499,734 56,072,788
Adjustment for the total monetary effect for the fiscal year 228,573,138 126,481,993
Adjustments to obtain cash flows from operating activities:
Amortization and depreciation 15,248,627 13,880,389
Allowance for loan losses 6,558,455 4,782,700
Difference in quoted prices of foreign currency (84,617,122 ) (33,568,600 )
Other adjustments 146,428,135 97,880,267
Net (decrease) / increase from operating assets:
Debt Securities at fair value through profit or loss (147,937,755 ) 98,545,297
Derivative Financial Instruments (40,375 ) 18,739
Repo transactions (752,960 ) 54,732,918
Loans and other financing
Non-financial Public Sector 2,421,371 6,000,091
Other Financial Entities 2,014,604 2,417,129
Non-financial Private Sector and Foreign Residents 76,537,798 55,283,683
Other debt securities 45,093,362 (66,861,892 )
Financial assets delivered as guarantee 4,372,869 7,029,825
Equity instruments at fair value through profit or loss 3,406,052 644,162
Other assets 9,927,205 (14,255,818 )
Net increase / (decrease) from operating liabilities:
Deposits
Non-financial Public Sector 83,973 (106,431,724 )
Financial Sector (218,889 ) (175,291 )
Non-financial Private Sector and Foreign Residents 148,488,957 (183,368,916 )
Liabilities at fair value through profit or loss (2,644,684 ) 3,170,711
Derivative financial instruments (2,562 ) 4,256
Repo transactions - (1,818,749 )
Other liabilities 4,979,837 (11,639,183 )
Income Tax Payments (2,690,271 ) (21,553,893 )
Total cash from operating activities (A) 517,729,499 87,270,882

Delfín Jorge Ezequiel Carballo

Chairperson

- 7 -
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE FISCAL YEARS ENDED DECEMBER 31, 2022 AND 2021
(Translation of the Financial Statements originally issued in Spanish – See Note 48)
(Figures stated in thousands of pesos in constant currency as of December 31, 2022)
Items Notes 12/31/2022 12/31/2021
--- --- --- --- --- --- --- ---
Cash flows from investing activities
Payments:
Acquisition of PPE, intangible assets and other assets (24,326,413 ) (13,426,064 )
Other payments related to investing activities (3,823 )
Control obtained in subsidiaries and other businesses (69,450 )
Total cash used in investing activities (B) (24,330,236 ) (13,495,514 )
Cash flows from financing activities
Payments:
Dividends (19,094,765 ) -
Non-subordinated corporate bonds (5,096,519 ) (7,966,533 )
Financing to local financial entities - (1,546,812 )
Subordinated Corporate Bonds (4,654,071 ) (5,870,991 )
Other payments related to financing activities (1,037,329 ) (1,520,684 )
Collections/Incomes:
Non subordinated corporate bonds 2,949,563
Financing to local financial entities 1,954,296 -
Total cash used in financing activities (C) (24,978,825 ) (16,905,020 )
Effect of exchange rate fluctuations (D) 126,319,062 52,772,391
Monetary effect on cash and cash equivalents (E) (448,538,096 ) (280,977,767 )
Net increase/ (decrease) in cash and cash equivalents (A+B+C+D+E) 146,201,404 (171,335,028 )
Restated cash and cash equivalents at the beginning of the fiscal year 32 603,726,214 775,061,242
Cash and cash equivalents at the end of the fiscal year 32 749,927,618 603,726,214

The notes 1 to 48 to the consolidated Financial Statements and exhibits A to J, L, N and P to R are an integral part of the consolidated Financial Statements

Delfín Jorge Ezequiel Carballo

Chairperson

- 8 -

NOTES TO THE CONSOLIDATEDFINANCIAL STATEMENTS

AS OF DECEMBER 31, 2022

(Translation of Financial Statements originally issued in Spanish – See Note 48)

(Figures stated in thousands of pesos in constant currency)

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 has mainly focused on the regional areas outside the Autonomous City of Buenos Aires (CABA, for its acronym in Spanish). Following this strategy, in 1996, Banco Macro SA started the process to acquire entities and assets and liabilities during the privatization of provincial and other banks.

During 2020 and 2021, the Bank made contributions in the company Play Digital SA for a total amount of 253,557 (not restated). On July 21 and January 17, 2022, the Bank made irrevocable capital contributions for an amount of 245,539 and 130,758 (not restated), respectively. On October 4, 2022, the Bank sold 22,112,340 shares for an amount of 61,889. As a consequence, the Bank’s new interest in this company is 8.9927% (see also note 14). 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 is explained in note 3 section “Basis for consolidation”, 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 14.

On February 23, 2023, the Board of Directors approved the issuance of these consolidated Financial Statements. Even when the Shareholders’ Meeting has the power to amend these consolidated Financial Statements after issuance, in Management’s opinion it will not happen.

2. OPERATIONS OF THE BANK
2.1. Agreement with the Misiones Provincial Government
--- ---

The Bank and the Misiones Provincial Government entered into a special-relationship agreement whereby the Bank was appointed, for a five-year term since January 1, 1996, as the Provincial Government’s exclusive financial agent as well as revenue collection and obligation payment agent.

On November 25, 1999, December 28, 2006 and October 1, 2018, extensions to such agreement were agreed upon, making it currently effective through December 31, 2029.

As of December 31, 2022 and 2021, the deposits held by the Misiones Provincial Government with the Bank amounted to 21,301,169 and 17,672,411 (including 1,615,790 and 2,017,923, related to court deposits), respectively.

- 9 -

NOTES TO THE CONSOLIDATEDFINANCIAL STATEMENTS

AS OF DECEMBER 31, 2022

(Translation of Financial Statements originally issued in Spanish – See Note 48)

(Figures stated in thousands of pesos in constant currency)

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 December 31, 2022 and 2021, the deposits held by the Salta Provincial Government with the Bank amounted to 34,510,592 and 12,575,320 (including 3,456,827 and 4,287,043, 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 December 31, 2022 and 2021, the deposits held by the Jujuy Provincial Government with the Bank amounted to 7,776,867 and 16,415,761 (including 2,224,501 and 3,718,351, related to court deposits), respectively.

2.4. Agreement with the Tucumán Provincial Government

The Bank acts as an exclusive financial agent and as revenue collection and obligation payment agent of the Tucumán Provincial Government, the Municipality of San Miguel de Tucumán and the Municipality of Yerba Buena. The services agreements with the Provincial and Municipal Governments are effective through years 2031, 2028 and 2025, respectively. As established in the original agreement, the service agreement with the Municipality of San Miguel de Tucumán was extended until 2028.

As of December 31, 2022 and 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 34,684,101 and 34,098,539 (including 9,263,053 and 9,992,623, related to court deposits), respectively.

Additionally, the Bank granted loans to the Tucumán Provincial Government, the Municipality of San Miguel de Tucumán and the Municipality of Yerba Buena as of December 31, 2022 for an amount of 524,301, as well as to the Tucumán Provincial Government and the Municipality of Yerba Buena as of December 31, 2021 for an amount of 3,580,730.

3. BASIS FOR THE PREPARATION OF THESE FINANCIAL STATEMENTS AND APPLICABLE ACCOUNTING STANDARDS

Presentation basis

Applicable Accounting Standards

These consolidated 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 CONSOLIDATEDFINANCIAL STATEMENTS

AS OF DECEMBER 31, 2022

(Translation of Financial Statements originally issued in Spanish – See Note 48)

(Figures stated in thousands of pesos in constant currency)

The transitory exceptions and regulatory guidelines established by BCRA to the application of effective IFRS, that affect the preparation of these consolidated 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 consolidated Financial Statements,<br>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 specific guidelines related to measure such holding.<br>Taking into account such guidelines, the Bank adjusted its fair value previously determined (see note 11). In March 2022, the shares related<br>to the abovementioned holding were transferred, recording the profit for this transaction in the quarter ended March 31, 2022. If, for<br>the fair value measurement purpose previously mentioned, IFRS had been applied, the profit or loss for the previous fiscal years and for<br>the fiscal year ended December 31, 2022, should have been modified. However, this situation does not generate differences in the shareholders’<br>equity as of December 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 consolidated Financial Statements in accordance with the IFRS as adopted by the BCRA through Communiqué “A” 7642. Generally, the BCRA does not allow the anticipated application of any IFRS, unless otherwise expressly stated.

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 consolidated Financial Statements continue to be prepared on the going concern basis.

Transcription into books

As of the date of issuance of these consolidated Financial Statements, the analytical detail is in the process of being transcribed into the Bank’s inventory book (“Libro Inventario”), general ledger and the consolidated Financial Statements into the Bank’s balance book (“Libro Balances”) of Banco Macro SA.

Figures expressed in thousands of pesos

These consolidated Financial Statements disclose figures expressed in thousands of Argentine pesos in terms of purchasing power as of December 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).

Statement of financial position

  • Disclosure

The Bank presents its statement of financial position in order of liquidity, as established by BCRA Communiqué “A” 6324. The analysis referred to the recovery of assets and settlement of liabilities during the 12 months after the reporting date and more than 12 months after the reporting date is disclosed in note 23.

Financial assets and financial liabilities are generally reported in gross figures in the consolidated statement of financial position. They are only offset and reported in net figures when there is a legal and enforceable right to offset such financial assets and liabilities and the Management also intends to settle them on a net basis or to realize assets and settle liabilities simultaneously.

These consolidated Financial Statements were prepared on a historical cost basis except for certain financial instruments which were valued at fair value through Other Comprehensive Income (OCI) or at Fair Value through Profit or Loss. For further information see Exhibit P “Categories of financial assets and liabilities”. In addition, in the case of derivative instruments (Futures and Forwards) both assets and liabilities were valued at Fair Value through Profit or Loss.

- 11 -

NOTES TO THE CONSOLIDATEDFINANCIAL STATEMENTS

AS OF DECEMBER 31, 2022

(Translation of Financial Statements originally issued in Spanish – See Note 48)

(Figures stated in thousands of pesos in constant currency)

Comparative information

The statement of financial position as of December 31, 2022 and the statement of income and other comprehensive income, the statement of changes in shareholders’ equity and the statement of cash flows for the fiscal year ended December 31, 2022, are presented comparatively with 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 consolidated Financial Statements have been restated for the changes in the general purchasing power of the functional currency (Argentine pesos) of the Bank, as of December 31, 2022, as established by IAS 29 “Financial Reporting in Hyperinflationary Economies” and considering, in addition, specific rules established by BCRA through Communiqués “A” 6651, 6849, as amended, which established the obligation to apply this method, from fiscal years beginning on or after January 1, 2020, and determined as the transition date December 31, 2018.

According to IFRS, the restatement of Financial Statements is needed when the functional currency is the currency of a hyperinflationary economy. To achieve consistency in identifying an economic environment of that nature, IAS 29 establishes (i) certain nonexclusive qualitative indicators, consisting in analyzing the general population behavior, prices, interest rates and wages with changes in price indexes and the loss of purchasing power, and (ii) as quantitative characteristic, which is the most used condition in practice, to test if a three-year cumulative inflation rate is around 100% or more. Due to miscellaneous macroeconomic factors, the three-year inflation rate exceeded that figure and the Argentine government goals and other available estimates also indicate that this trend will not be reversed in the short term.

The restatement was applied as if the economy had always been hyperinflationary, using a general price index that reflects changes in general purchasing power. To apply the restatement, a series of indexes were used, as prepared and published on a monthly basis by the Argentine Federation of Professional Councils of Economic Sciences (FACPCE, for its acronym in Spanish), which combines the consumer price index (CPI) on a monthly basis published by the Argentine Institute of Statistics and Censuses (INDEC, for its acronym in Spanish) since January 2017 (baseline month: December 2016) with the wholesale prices indexes published by the INDEC until that date. For the months of November and December 2015, for which the INDEC did not publish the wholesale price index (WPI) variation, the CPI variation for CABA was used.

Considering the abovementioned indexes, the inflation rate was 94.79% and 50.94% for the fiscal years ended on December 31, 2022 and 2021, respectively.

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 fiscal year.
(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.
--- --- 
- 12 -

NOTES TO THE CONSOLIDATEDFINANCIAL STATEMENTS

AS OF DECEMBER 31, 2022

(Translation of Financial Statements originally issued in Spanish – See Note 48)

(Figures stated in thousands of pesos in constant currency)

(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 fiscal year<br>related to depreciation of property, plant and equipment and amortization of Intangible Assets and other non-monetary assets cost are<br>determined over the new restated amounts.
(v) When an entity capitalizes borrowing cost in the non-monetary assets, the part of the borrowing cost that<br>compensates for the inflation during the same fiscal year 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 fiscal year. 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 fiscal year and deferred tax<br>related to the revaluation is recognized in other comprehensive income for the fiscal year.
--- ---

Description of the main aspects of the restatement process for statements of income and other comprehensive income:

(i) Income and expenses are restated from the date the items were recorded, except for those income or loss<br>items that reflect or include, in their determination, the consumption of assets measured at the currency purchasing power from a date<br>prior to that which the consumption was recorded, which is restated using as a basis the acquisition date of the assets related to the<br>item, except for income or losses arising from comparing the two measurements at currency purchasing power of different dates, for which<br>it requires to identify the compared amounts, to restate them separately and to repeat the comparison, with the restated amounts.
(ii) The gain or loss from monetary position will be classified based on the item that generated it and will<br>be separately disclosed reflecting the inflationary effects over such items.
--- ---

Description of the main aspects of the restatement process for the statements of changes in shareholders’ equity:

(i) As the transition date (December 31, 2018), the Bank has applied the following procedures:
(a) The components of equity, except the ones mentioned below, were restated from the dates the components<br>were contributed or otherwise arose according to BCRA Communiqué “A” 6849, for each item.
--- ---
(b) Earnings reserved, including the special reserve for the first-time application of IFRS, were stated at<br>nominal value at the transition date (legal amount not restated).
--- ---
(c) The unappropriated retained earnings were determined as a difference between the restated net asset at<br>the transition date and the other components of equity, restated as disclosed in the abovementioned paragraphs.
--- ---
(d) The accumulated balances of other comprehensive income were recalculated 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 restated<br>by applying a general price index as mentioned before from the beginning of the fiscal year and each variation of those components is<br>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”.
--- --- 
- 13 -

NOTES TO THE CONSOLIDATEDFINANCIAL STATEMENTS

AS OF DECEMBER 31, 2022

(Translation of Financial Statements originally issued in Spanish – See Note 48)

(Figures stated in thousands of pesos in constant currency)

Basis for consolidation

These consolidated Financial Statements include the Financial Statements of the Bank and its subsidiaries as of December 31, 2022.

Subsidiaries are all the entities controlled by the Bank. The Bank 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.

This generally happens when there is a shareholding of more than half of its shares having voting rights.

Notwithstanding the above, under certain particular circumstances, the Bank may still have control with less than a 50% interest or may not have the control even if it holds more than half of the shares of such other entity.

Upon evaluating whether it has power over the controlled entity, and therefore controls the variation of its returns, the Bank shall consider all relevant facts and circumstances, including:

- The purpose and design of the controlled entity.
- What the relevant activities are and how decisions about those activities are made and whether the Bank<br>has the ability to direct such relevant activities.
--- ---
- Contractual arrangements such as call rights, put rights and liquidation rights.
--- ---
- Whether the Bank is exposed, or has rights, to variable returns from its involvement with such controlled<br>entity, and whether the Bank has the ability to use its power over the controlled entity to affect the amount of the Bank’s returns.
--- ---

The structured entities have been designed to reach a specific business goal and for voting or similar rights not to be the dominant factor in deciding who controls the entity, such as when any voting rights are related to the administrative tasks only and the relevant activities are directed by means of contractual agreements.

As explained in note 1, on October 1, 2021, the Bank acquired an investment in Fintech SGR. Even though the Bank holds 49.9939% of Class B shares held by the protector partners, and the 24.99% in the total capital stock of this company, the Bank has the power to direct Fintech’s relevant activities. Therefore, the Bank controls this structured entity and consolidates its Financial Statements together with the risk funds (“Fondo de Riesgo”).

Subsidiaries are completely consolidated since the date of the effective transfer of the control over them to the Bank and consolidation ceases when the Bank loses control over the subsidiaries. These consolidated Financial Statements include the assets, liabilities, income and each component of other comprehensive income of the Bank and its subsidiaries. Transactions between consolidated entities are completely eliminated.

Changes in a parent’s ownership interest in a subsidiary that do not result in the parent losing control of the subsidiary are equity transactions. However, if a parent company loses control of a subsidiary, it shall derecognize the assets (including any goodwill) and liabilities of the subsidiary, any non-controlling interests in the former subsidiary and other capital components, while any profit or loss derived from the transaction, event or circumstances that resulted in the loss of control shall be recognized as in profit or loss, and any investment retained in the former subsidiary shall be recognized at its fair value on the date control is lost.

The Financial Statements of the subsidiaries have been prepared as of the same dates and for the same accounting periods as those of the Bank, using uniform accounting policies consistent with those applied by the Bank. If necessary, adjustments shall be made to the Financial Statements of the subsidiaries so that the accounting policies used by the group are uniform.

The Bank considers the Argentine peso as its functional and presentation currency. To such effect, before consolidation, the Financial Statements of its subsidiary Macro Bank Limited, originally stated in US dollars, were translated to pesos (presentation currency) using the following method:

a) Assets and liabilities were converted at the reference exchange rate of the BCRA, in force for US Dollars<br>at the closing of business on the last business day of each year. 
- 14 -

NOTES TO THE CONSOLIDATEDFINANCIAL STATEMENTS

AS OF DECEMBER 31, 2022

(Translation of Financial Statements originally issued in Spanish – See Note 48)

(Figures stated in thousands of pesos in constant currency)

b) Figures related to the owners’ contributions (capital stock, non-capital Contributions and irrevocable<br>capital contributions) were translated applying the effective exchange rates as of the date on which such contributions were paid in.
c) Income for the fiscal years ended December 31, 2022 and 2021, were translated into pesos on a monthly<br>basis, using the monthly average of the reference exchange rate of the BCRA.
--- ---
d) Foreign currency translation differences arising as a result of the preceding paragraphs are recognized<br>as a separate component within the Shareholders’ Equity account reporting them in the statement of other comprehensive income, which<br>is called “Foreign currency translation differences in Financial Statements conversion”.
--- ---

On the other hand, non-controlling interests represent the portion of income and equity not directly or indirectly attributable to the Bank. In these consolidated Financial Statements they are disclosed as a separate line in the statement of financial position, the statement of income, the statement of other comprehensive income and the statement of changes in shareholders’ equity.

As of December 31, 2022 and 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 Securities SAU (1) Ave. Eduardo Madero 1182 – CABA Argentina Stock exchange services
Macro Fiducia SAU Ave. Eduardo Madero 1182 – 2nd floor. CABA Argentina Services
Macro Fondos SGFCISA Ave. Eduardo Madero 1182 – 24th floor, Office B–. CABA Argentina Management and administration of mutual funds
Macro Bank Limited (2) Caves Village, Building 8 Office 1 – West Bay St., Nassau Bahamas Banking entity
Argenpay SAU Ave. Eduardo Madero 1182 – CABA Argentina Electronic payments services
Fintech SGR (Structured entity) San Martín 140- 2^th^ floor –CABA Argentina Granting of guarantees
(1) Consolidated with Macro Fondos SGFCISA (80.90% equity interest and voting rights).
--- ---
(2) Consolidated with Sud Asesores (ROU) SA (100% voting rights – Equity interest: 34,063). 
- 15 -

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2022

(Translation of Financial Statements originally issued in Spanish – See Note 48)

(Figures stated in thousands of pesos in constant currency)

As of December 31, 2022 and 2021, the Bank’s equity interest and voting rights in the companies it consolidates is as follows:

· As<br>of December 31, 2022:
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 SAU Common 12,885,683 100.00 % 100.00 %
Macro Fiducia SAU Common 47,387,236 100.00 % 100.00 %
Macro Fondos SGFCISA Common 327,183 100.00 % 100.00 %
Macro Bank Limited Common 39,816,899 100.00 % 100.00 %
Argenpay SAU (1) Common 341,200,000 100.00 % 100.00 %
Fintech SGR (Structured entity) Common 119,993 24.999 % 24.999 % 75.001 % 75.001 %
(1) On January 30, 2023, the Bank made a new irrevocable capital contribution in this company for an amount<br>of 330,000.
--- ---
· As<br>of December 31, 2021:
--- ---
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 SAU Common 12,776,680 99.925 % 99.932 % 0.075 % 0.068 %
Macro Fiducia SAU 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 December 31, 2022 and 2021 are as follows:

Balances<br> as of 12/31/2022 Banco<br> <br>Macro SA Macro<br> Bank<br><br> Limited Macro Securities<br> <br>SAU Macro<br> <br>Fiducia SAU Argenpay<br> <br>SAU Fintech<br> <br>SGR Eliminations Consolidated
Assets 2,057,885,941 16,056,324 33,920,825 197,691 2,534,924 5,311,270 (25,452,452 ) 2,090,454,523
Liabilities 1,545,475,632 11,096,822 23,422,991 4,926 1,598,066 5,198,348 (8,837,259 ) 1,577,959,526
Equity attributable to the owners<br> of the Bank 512,410,309 4,959,502 9,991,335 192,765 936,858 112,922 (16,193,382 ) 512,410,309
Equity attributable to non-controlling<br> interests 506,499 (421,811 ) 84,688 
- 16 -

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2022

(Translation of Financial Statements originally issued in Spanish – See Note 48)

(Figures stated in thousands of pesos in constant currency)

Balances<br> as of 12/31/2021 Banco<br> <br>Macro SA Macro<br> Bank<br><br> Limited Macro<br><br><br> Securities<br><br> SAU Macro<br> <br>Fiducia SAU Argenpay<br> <br>SAU Fintech<br> <br>SGR Eliminations Consolidated
Assets 1,913,375,537 17,819,385 29,383,987 238,359 2,307,368 2,717,603 (22,388,177 ) 1,943,454,062
Liabilities 1,448,660,321 12,034,621 22,812,220 5,591 1,353,194 2,627,811 (8,828,700 ) 1,478,665,058
Equity attributable to the owners<br> of the Bank 464,715,216 5,784,764 6,236,163 232,768 954,174 89,792 (13,297,661 ) 464,715,216
Equity attributable to non-controlling<br> interests 335,604 (261,816 ) 73,788

The Bank’s Management considers there are no other companies or structured entities to be included in the consolidated Financial Statements as of December 31, 2022.

Summary of significant accountingpolicies

Below there is a description of the principal valuation and disclosure criteria used for the preparation of these consolidated Financial Statements as December 31, 2022:

3.1 Assets and liabilities denominated in foreign currency:

The Bank considers the Argentine Peso as its functional and presentation currency. The assets and liabilities denominated in foreign currency, mainly in US dollars, were valued at BCRA benchmark US dollar exchange rate effective as of the closing date of transactions on the last business day of each fiscal year.

Additionally, assets and liabilities denominated in other foreign currencies were translated at the repo exchange rate in US Dollars communicated by the BCRA’s dealing room. Foreign exchange differences were recorded in the related Statements of income as “Difference in quoted prices of gold and foreign currency”.

3.2 Financial Instruments

Initial Recognition and Measurement

The Bank recognizes a financial instrument when it becomes party to the contractual provisions thereof.

The purchase and sale of financial assets requiring the delivery of assets within the term generally established by the rules and regulations or the market conditions are recorded on the transaction’s trading date, i.e. on the date the Bank undertakes to acquire or sell the relevant asset.

At initial recognition, the financial assets and liabilities were recognized at fair value. Those financial assets and liabilities not recognized at fair value through profit or loss, were recognized at fair value adjusted for transaction costs directly attributable to the acquisition or issue of the financial asset or liability.

At initial recognition, the fair value of a financial instrument is generally the transaction price. Nevertheless, if part of the consideration received or paid is for something other than the financial instrument, the Bank estimates the fair value of the financial instrument. If the fair value is based on a valuation technique that uses only data from observable markets, the Bank shall recognize the difference between fair value at the initial recognition and the transaction price as gain or loss. When the fair value is based on a valuation technique that uses data from non-observable markets, the Bank shall recognize that deferred difference in profit or loss only to the extent that it arises from a change in a factor (including time) that market participants would take into account when pricing the asset or liability, or when the instrument is derecognized.

Finally, in the normal course of business, the Bank arranges repo transactions. According to IFRS 9, assets involved in repurchase and reverse repurchase transactions and received from or delivered to third parties, respectively, do not qualify to be recognized or derecognized, respectively (see note 6).

- 17 -

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2022

(Translation of Financial Statements originally issued in Spanish – See Note 48)

(Figures stated in thousands of pesos in constant currency)

Subsequent measurement – Business Model

The Bank established three categories for the classification and measurement of its debt instruments, in accordance with the Bank’s business model to manage them and the contractual cash flow characteristics thereof:

- At amortized cost: the objective of the business model is to hold financial assets in order to collect<br>contractual cash flows.
- At fair value through other comprehensive income: the objective of the business model is both collecting<br>the contractual cash flows of the financial asset and/or of those derived from the sale of the financial asset.
--- ---
- At fair value from profit or loss: the objective of the business model is generating income derived from<br>the purchase and sale of financial assets.
--- ---

Therefore, the Bank measures its financial assets at fair value, except for those that meet the following two conditions and are measured at amortized cost:

- The financial assets are held within a business model whose objective is to hold financial assets in order<br>to collect contractual cash flows.
- The contractual terms of the financial asset give rise, on specified dates, to cash flows that are solely<br>payments of principal and interest on the principal amount outstanding.
--- ---

The Bank’s business model is determined at a level that reflects how groups of financial assets are managed together to achieve a particular business objective.

The business model is not assessed on an instrument-by-instrument approach, but it should rather be determined on a higher level of aggregation and is based on observable factors such as:

- How the performance of the business model and the financial assets held within that business model are<br>evaluated and reported to the Bank’s key management personnel.
- The risks that affect the performance of the<br>business model (and the financial assets held within that business model) and, in particular, the way in which those risks are managed.
--- ---
- The expected frequency, value, timing and reasons<br>of sales are also important aspects.
--- ---

The assessment of the business model is performed on the basis of scenarios that the Bank reasonably expects to occur, without taking into account the scenarios such as the so-called ‘worst case’ or ‘stress case’ scenarios. If after the initial recognition cash flows are realized in a way that is different from the Bank’s expectations, the classification of the remaining financial assets held in that business model does not change, but it rather considers all relevant information to assess the newly originated or newly purchased financial assets.

Test of solely payments of principal and interest (the SPPI test)

As part of the classification process, the Bank assessed the contractual terms of its financial assets in order to determine if such financial instruments give rise to cash flows on specific dates which are solely payments of principal and interest on the principal amount outstanding.

For the purposes of this assessment, “principal” is defined as the fair value of the financial asset at initial recognition, provided such amount may change over the life of the financial instrument, for example, if there are repayments of principal or premium amortization or discount.

The most significant elements of interest within a loan agreement are typically the consideration for the time value of money and credit risk.

For the SPPI test, the Bank applies judgment and considers relevant factors such as the currency in which the financial asset is denominated and the period for which the interest rate is set.

However, contractual terms that introduce exposure to risks or volatility in the contractual cash flows that are unrelated to a basic lending arrangement do not give rise to contractual cash flows that are solely payments of principal and interest on the principal amount outstanding. In such cases, financial assets are required to be measured at fair value through profit or loss.

Therefore, the financial assets were classified pursuant to the above expressed as “Financial assets at fair value through profit or loss”, “Financial assets at fair value through other comprehensive income” or “Financial assets at amortized cost”. Such classification is disclosed in exhibit P.

- 18 -

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2022

(Translation of Financial Statements originally issued in Spanish – See Note 48)

(Figures stated in thousands of pesos in constant currency)

· Financial assets and liabilities at fair value<br>through profit or loss

This category presents two subcategories: financial assets at fair value held for trading and financial assets initially designated at fair value by the Management or under section 6.7.1. of IFRS 9. The Bank’s Management has not designated, at the beginning, financial assets at fair value through profit or loss.

The Bank classifies the financial assets as held for trading when they have been acquired or incurred principally for the purpose of selling or repurchasing them in the short term or when they are part of a portfolio of identified financial instruments that are managed together and for which there is evidence of a recent actual pattern of short-term profit-taking.

Financial assets and liabilities at fair value through profit or loss are recognized at fair value in the statement of financial position. Changes in fair value are recognized under the item “Net gain from measurement of financial instruments at fair value through profit or loss” in the statement of income, as well as interest income or expenses and dividends pursuant to the contractual terms and conditions, or when the right to receive payment of the dividend is established.

The fair value estimation is explained in detail in section “Accounting judgments, estimates and assumptions” of this note, and note 12 describes the valuation process of financial instruments at fair value.

· Financial assets at fair value through other<br>comprehensive income (OCI)

A financial asset shall be measured at fair value through other comprehensive income if (i) the financial instrument is held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets and (ii) the contractual terms of the financial asset meet the determination that cash flows are solely payments of principal and interest on the principal amount outstanding.

Debt instruments at fair value through other comprehensive income are recognized in the statement of financial position at fair value. Profit and loss derived from changes in fair value are recognized in other comprehensive income as “Net gain from financial instruments measured at fair value through other comprehensive income”. Interest income (calculated by the “effective interest method”, which is explained in the following section), profit and loss from translation differences and impairment are recognized in the statement of income in the same manner as for financial assets measured at amortized cost and are disclosed as “Interest income”, “Differences in quoted prices of gold and foreign currency” and “Allowance for loan losses”, respectively.

When the Bank has more than one investment on the same security, it must be considered that they shall be disclosed using the first-in first-out costing method.

On derecognition, accumulated gains and losses previously recognized in OCI are reclassified to profit or loss.

· Financial assets at amortized cost –<br>Effective interest method

They represent financial assets held in order to collect contractual cash flows and the contractual terms of which give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

After initial recognition, these financial assets are recognized in the statement of financial position at amortized cost using the effective interest method, less a loss allowance for expected credit losses (ECL), considering the exceptions established by BCRA Communiqué “A” 6847, detailed in section 3.2.4.

Interest income and impairment are disclosed in the statement of income as “Interest income” and “Allowance for loan losses”, respectively. Changes in the allowance for ECL are presented in note 9 and exhibit R “Value adjustment for credit losses – Allowance for uncollectibility risk”.

The effective interest method uses the rate that allows the discount of estimated future cash payments or receipts through the expected life of the financial instrument or lesser term, if applicable, to the net carrying amount of such financial instrument. When applying this method, the Bank identifies points paid or received, fees, premiums, discounts and transaction costs, incremental and direct costs as an integral part of the effective interest rate (hereinafter, EIR). For such purposes, interest is the consideration for the time value of money and for the credit risk associated with the amount of principal outstanding during a specific period of time.

- 19 -

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2022

(Translation of Financial Statements originally issued in Spanish – See Note 48)

(Figures stated in thousands of pesos in constant currency)

3.2.1 Cash and deposits in banks

They were valued at their nominal value plus the relevant accrued interest, if applicable. Accrued interests were allocated in the statement of income as “Interest income”.

3.2.2 Repo transactions (purchase and sale of financial instruments)

These transactions were recognized in the statement of financial position as financing granted (received), under “Repo transactions”.

The difference between purchase and sale prices of such instruments were recognized as interest accrued during the effective term of the transactions using the effective interest method and were allocated in the statement of income as “Interest income” and “Interest expense”.

3.2.3 Loans and other financing

They are non-derivative financial assets that the Bank holds within a business model whose objective is to hold financial assets in order to collect contractual cash flows and the contractual terms of which give rise, on specified dates, to cash flows that are solely payments of principal and interest on the principal amount outstanding.

After initial recognition, loans and other financing were measured at amortized cost using the effective interest method, less a loss allowance for ECL. The amortized cost was calculated taking into account any discount or premium incurred in the origination or acquisition, and origination fees or commissions, which are part of the EIR. Income from interest was allocated in the statement of income as “Interest income”.

3.2.4 Impairment of financial assets

The accounting policy adopted on the impairment of financial assets not measured at fair value through profit or loss is detailed below:

3.2.4.1 Overview of the ECL principles

Except for disclosures to the public sector, which were temporarily excluded by BCRA Communiqué “A” 6847, the Bank recognizes a loss allowance for ECL on loans, other financing and other debt instruments not measured at fair value through profit or loss along with loan commitments and financial guarantee contracts (not measured at fair value through profit or loss) and contract assets and accounts receivable on loans; hereinafter, the “financial instruments”. Investments in equity instruments are not subject to impairment under IFRS 9. According to Communiqué “A” 6847, for disclosures to the public sector, BCRA standards on minimum loan loss allowances still apply, which, particularly for this type of sector, indicate that they are not subject to allowances.

The loss allowance for ECL is based on credit losses expected to arise during the life of a financial asset (lifetime ECL), unless there was no significant increase in credit risk since initial recognition, in which case the loss allowance is based on 12-month ECL. The Bank’s policies to determine whether credit risk increased significantly are included in note 45.1.1 “Assessment of credit risk impairment”, section “Definitions of significant increase in risk (SICR), impairment and default”.

12-month ECL is the portion of lifetime ECL that results from default events on a financial instrument that are possible within the 12 months after the reporting date.

Lifetime ECL and 12-month ECL are calculated on individual or collective bases according to the nature of the portfolio of financial instruments. The Bank’s policy to group the financial assets measured on a collective basis are explained in note 45.1.1, sections “Customers analyzed on a collective basis” and “Customers analyzed on an individual basis”.

- 20 -

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2022

(Translation of Financial Statements originally issued in Spanish – See Note 48)

(Figures stated in thousands of pesos in constant currency)

The Bank adopted a policy to assess, at the end of each reporting period, whether there was a significant increase in the credit risk of a financial instrument since initial recognition considering the change in risk that the default may occur during the remaining life of a financial instrument. This is further explained in note 45.1.1, section “Definitions of significant increase in risk (SICR), impairment and default”.

According to the aforementioned process, the Bank groups its financial instruments into Stage 1, Stage 2 and Stage 3, also covering purchased or originated financial instruments that are credit impaired, as described below:

· Stage<br>1: When financial instruments are recognized for the first time, the Bank recognizes a loss allowance according to 12-month ECL. Stage<br>1-financial instruments also include credit lines in which credit risk improved within the parameters established by the Bank and the<br>financial instrument was reclassified to another stage.
· Stage 2: When a financial instrument shows a<br>SICR since initial recognition, the Bank books a loss allowance for lifetime ECL. Stage 2-financial instruments also include credit lines<br>in which credit risk improved within the parameters established by the Bank and the financial instrument was reclassified to Stage 3.
--- ---
· Stage 3: Financial instruments which credit value<br>is impaired (as described in note 45.1.1, section “Definitions of significant increase in risk (SICR), impairment and default”.)<br>The Bank books a loss allowance for lifetime ECL.
· Purchased or originated financial instruments<br>that are credit impaired: financial instruments that are credit impaired upon initial recognition. Purchased or originated financial instruments<br>that are credit impaired are booked at fair value upon initial recognition and interest income is recognized subsequently at a credit-adjusted<br>effective interest rate. The loss allowance of ECL is only recognized or reversed provided that there is a subsequent change in ECL. The<br>Bank did not purchase or generate credit-impaired financial instruments.

The Bank reduces the carrying amount of the financial instruments which amount owed it does not expect to recover in part or in full. This is considered a derecognition of the financial instrument.

3.2.4.2 The calculation of ECL

The key parameters to calculating ECL are as follows:

· Probability of default (PD): It is an estimate<br>of the probability of default during a certain time horizon. A default may occur only at a certain time during the period assessed if<br>the credit line was not derecognized before and is still part of the portfolio. The concept of probability of default is explained in<br>note 45.1.1, section “Probability of default (PD)”.
· Exposure at default (EAD): It is an estimate<br>of the exposure to a future default date considering the expected changes in exposure after reporting date, including the settlement of<br>principal and interest, whether they are scheduled by the agreement or otherwise, the expected disbursements on committed credit lines<br>and interest accrued on late payments. The exposure at default is explained in note 45.1.1 section, “Exposure at default (EAD)”.
--- ---
· Loss given default (LGD): It is an estimate of<br>the loss arising in the event of default in a certain term. It is based on the difference between contractual cash flows and cash flows<br>expected by the lender, including the performance of a guarantee or credit improvements related to the loan. In general, it is expressed<br>as a percentage of the exposure at default. Further information of LGD is included in note 45.1.1, section “Loss given default (LGD)”.
--- --- 
- 21 -

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2022

(Translation of Financial Statements originally issued in Spanish – See Note 48)

(Figures stated in thousands of pesos in constant currency)

For overdrafts which include both a loan and an unused loan commitment, ECL are calculated and disclosed with the loan. For loan commitments (including credit cards) and financial guarantee contracts, ECL are recognized in “Provisions”.

The method for calculating ECL is summarized below:

· Stage 1: 12-month ECL are calculated as a portion of lifetime<br>ECL, accounting for the ECL of financial instruments from default within the 12 months subsequent to year-end. The Bank calculates the<br>allocation of 12-month ECL based on the expectation of default within 12 months after year-end. These expected 12-month probabilities<br>of default are applied to an EAD and multiplied by the expected LGD and discounted to the original effective interest rate.
· Stage 2: When a financial instrument shows a significant increase<br>in credit risk since initial recognition, the Bank books a loss allowance for lifetime ECL. The method is similar to the one explained<br>above, including the use of different scenarios, but PD is estimated over the remaining life of the instrument. Expected cash shortfalls<br>are discounted to the original effective interest rate.
--- ---
· Stage 3: For financial instruments considered credit-impaired,<br>the Bank recognizes the ECL for the remaining life of these financial instruments. The method is similar to those used by Stage 2-financial<br>instruments, with a PD set at 100%.
--- ---
· Loan commitments and credit cards: Upon estimating the lifetime<br>ECL for loan commitments, the ECL are the present value of the difference between the cash flows owed to the bank and the expected cash<br>flows if the loan is withdrawn during the 12 months or expected lifetime. The cash flows are discounted at the original effective interest<br>rate of each transaction.
--- ---
· Guarantees and other commitments: The Bank’s liability<br>under each guarantee is measured at the higher of the amount initially recognized less cumulative amortization recognized in the statement<br>of income and the ECL provision. To such end, the Bank estimates the ECL based on the present value of the payments expected to be disbursed<br>to the guarantee holder should the debtor fail to pay the debt. Cash flows are discounted by the risk-adjusted interest rate relevant<br>to the disclosure. The ECL related to financial guarantee contracts are recognized in “Provisions”.
--- ---

In all these scenarios, the ECL are adjusted on a forward-looking base, weighing the three probable macroeconomic scenarios, as explained in section 3.2.4.3 “Prospective information”.

3.2.4.3 Prospective information

To determine a loss allowance in the calculation of ECL, the impact of the main macroeconomic variables should be analyzed to adjust historical information to the current conditions and short-term prospects. To such end, different and probable macroeconomic scenarios (base case, favorable and downside) should be weighed upon using relevant variables in assessing credit risk (such as GDP growth, interest rate and CPI).

The inputs and models used for calculating ECL may not always capture all market characteristics as of the date of these consolidated Financial Statements. Consequently, the Bank may consider certain qualitative temporary adjustments to ensure that they are taken into account if they are material. Further information is included in note 45.1.2 “Prospective information used in ECL models”.

3.2.4.4 Debt instruments measured at fair value through other comprehensive<br>income

The ECL of the debt instruments measured at fair value through other comprehensive income does not reduce the carrying amount of these financial instruments in the statement of financial position, which remains at fair value. Instead, an amount equal to the correction of value from these assets measured at amortized cost is recognized in “Other comprehensive income” as a cumulative impairment amount with the related charge to income. Cumulative loss recognized in “Other comprehensive income” is reclassified to the statement of income when the assets are derecognized.

- 22 -

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2022

(Translation of Financial Statements originally issued in Spanish – See Note 48)

(Figures stated in thousands of pesos in constant currency)

3.2.4.5 Credit cards and other revolving credit lines

In the case of credit cards and other revolving lines of credit, the Bank does not limit its exposure to expected losses to the contractual notice period, but rather calculates ECL over a period that reflects the Bank’s expectations of customer behaviors, their unused credit commitments, the probability of default and the Bank’s future risk mitigation expectations, which may include reducing or settling the lines of credit.

The interest rate used to discount the ECL for credit cards is based on the average effective interest rate that is expected to be charged over the expected period of exposure to these lines of credit. This estimate considers that some of these lines of credit may be settled every month fully and consequently no interest would be charged.

3.2.4.6 Applications

Financial instruments are settled in part or in full after the first month in which the Bank has no reasonable expectations of recovering the financial instrument or part of the instrument. Should the amount to be settled be higher than the loss allowance for accumulated losses, the difference is considered an addition to the loss allowance that is then applied against the gross carrying amount. Any subsequent recovery is disclosed in the statement of income for the year of recovery in “Other operating income.”

3.2.4.7 Forborne and modified loans

The Bank considers a loan forborne when such modification is a result of the borrower’s present or expected financial difficulties. The renegotiation may include the extension of the payment terms and the agreement of new loan conditions. Once the conditions are renegotiated, the impairment is measured using the original effective interest rate as calculated before the conditions were amended. The Bank monitors forborne loans to ensure the continuity of future payments. Derecognition decisions and the classification between Stages 2 and 3 are determined on a case-by-case basis for the commercial portfolio and collectively for the consumer portfolio. Should these procedures identify a loss related to a loan, it is disclosed and managed as an impaired Stage 3 forborne asset until it is collected or derecognized.

When the loan is renegotiated or modified but is not derecognized, the Bank also considers whether the assets should be classified in Stage 3. Once an asset is classified as renegotiated, it will continue in Stage 2 until it is collected in full or impaired (Stage 3).

If the modifications are substantial, the loan is derecognized and a new loan with different conditions is recognized.

3.2.4.8 Valuation of collaterals

To mitigate the risks of its financial instruments, the Bank seeks to use, when possible, collaterals. Collateral comes in various forms, such as cash, securities, letters of credit, real estate, receivables, other non-financial assets and credit enhancements, such as netting arrangements. Collateral, except for attached assets, is not recorded in the Bank’s statement of financial position. However, the fair value of collateral affects the calculation of ECL in certain products and customers assessed on an individual basis. The assessment is usually made at least at the beginning date and it is reassessed on a regular basis.

Whenever possible, the Bank uses active market data to assess the financial instruments maintained as collateral. Other financial instruments that do not have readily determinable market values are valued using internal methods. Non-financial collateral, such as real estate, is valued based on data provided by third parties, such as mortgage brokers.

- 23 -

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2022

(Translation of Financial Statements originally issued in Spanish – See Note 48)

(Figures stated in thousands of pesos in constant currency)

3.2.5 Collateral repossessed

The Bank’s policy is to determine whether an attached asset can be best used internally or should be sold. Assets determined to be useful internally are transferred to their relevant asset category at the lower of their attached value or the carrying value of the original secured asset.

The assets for which selling is determined to be a better option are transferred to assets held for sale at their fair value (if financial assets) and fair value less cost of sales for non-financial assets at attachment date according to the Bank’s policy.

During the normal course of business, the Bank does not include in its portfolio the properties and other attached assets but rather uses external agents to recover the funds, generally through auctions, to settle the outstanding payable. Any surplus fund is reimbursed to the customer/debtor. Hence, residential properties under attachment proceedings are not booked in the balance sheet.

3.2.6 Financial liabilities

After initial recognition, certain financial liabilities were measured at amortized cost using the effective interest method, except for derivatives that were measured at fair value through profit or loss. Interests were allocated in the statement of income as “Interest expense”.

Within other financial liabilities the Bank included guarantees granted and eventual liabilities, which must be disclosed in the notes to the Financial Statements, when the documents supporting such credit facilities are issued and are initially recognized at fair value of the commission received, in the statement of financial position. After initial recognition, the liability for each guarantee was recognized at the higher of the amount of the loss allowance and the amount initially recognized less, when appropriate, the cumulative amount of income recognized in accordance with the principles under IFRS 15 “Revenue from contracts with customers”. The commission received has been recognized as “Commissions income” in the statement of income, based on the amortization thereof following the straight-line method over the effective term of the financial guarantee granted.

3.2.7 Derivative financial instruments

Receivables and payables from forward transactions without delivery of underlying assets

It includes forward purchase and sale transactions of foreign currency without delivery of the traded underlying asset. Such transactions were measured at the fair value of the contracts and were performed by the Bank for intermediation purposes on its own account. The originated income was allocated in the consolidated statement of income as “Net gain from measurement of financial instruments at fair value through profit or loss”.

Derecognition of financial assets and liabilities

A financial asset (or, if applicable, a part of a financial asset or a part of a group of similar financial assets) shall be derecognized when: (i) the contractual rights to the cash flows from the financial asset expire, or (ii) the Bank transfers the contractual rights to receive the cash flows of the financial asset or retains the contractual rights to receive the cash flows of the financial asset, but assumes a contractual obligation to pay the cash flows received immediately to a third party pursuant to a transfer agreement.

A transfer shall qualify for derecognition of the financial asset only if (i) the Bank has transferred substantially all the risks and rewards of ownership of the financial asset, or (ii) it has neither transferred nor retained substantially all the risks and rewards of ownership of the financial asset, but has transferred the control of the financial asset, considering that the control is transferred if, and only if, the transferee has the practical ability to sell the asset in its entirety to an unrelated third party and is able to exercise that ability unilaterally and without needing to impose additional restrictions on the transfer.

If the Bank neither transfers nor retains substantially all the risks and rewards of ownership of a transferred asset, and has retained the control over it, the Bank shall continue to recognize such transferred asset to the extent to which it is exposed to changes in the value of the transferred asset.

- 24 -

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2022

(Translation of Financial Statements originally issued in Spanish – See Note 48)

(Figures stated in thousands of pesos in constant currency)

The Bank derecognizes a loan when the terms and conditions have been renegotiated and if, substantially, it becomes a new loan, recognizing the difference for derecognition in profit or loss. If the modification does not generate substantially different cash flows, the modification does not result in derecognition of the loan. The Bank recalculates the gross carrying amount of the assets as present value of modified contractual cash flows, using for the discount the original EIR and recognizes profit or loss from modification as explained in section 3.2.4.7 “Forborne and modified loans”.

On the other hand, a financial liability is derecognized when the obligation specified in the relevant contract is discharged, cancelled or expires. When there is an exchange between an existing borrower and lender of debt instruments with substantially different terms, or the terms are substantially modified, such exchange or modification shall be accounted for as an extinguishment of the original financial liability and the recognition of a new financial liability, recognizing the difference between the carrying amount of a financial liability extinguished or transferred to another party and the consideration paid, in the statement of income as “Other operating income”.

3.3 Leases

The Bank assesses at contract inception whether a contract is, or contains, a lease. That is, if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration.

3.3.1 The Bank as a lessee

The Bank applies a single recognition and measurement approach for all leases, except for short-term leases and leases of low-value assets, which payments are recognized as rent expense on a straight-line basis. The Bank recognizes lease liabilities to make lease payments and right-of-use assets representing the right to use the underlying assets.

· Right-of-use<br>assets

The Bank recognizes right-of-use assets at the commencement date of the lease. Right-of-use assets are measured at cost, less any accumulated depreciation and impairment losses, and adjusted for any remeasurement of lease liabilities. The cost of right-of-use assets includes the amount of lease liabilities recognized, initial direct costs incurred, and lease payments made at or before the commencement date less any lease incentives received. The right of use assets are depreciated on a straight-line basis over the shorter of its estimated useful life and the lease term. Right-of-use assets are subject to impairment, as described in section 3.10 of this note.

The right-of-use assets are also subject to impairment, as explained in section 3.10 of this note.

· Lease liabilities

At the commencement date of the lease, the Bank recognizes lease liabilities measured at the present value of lease payments to be made over the lease term. The lease payments include fixed payments less any lease incentives receivable, variable lease payments that depend on an index or a rate, and amounts expected to be paid under residual value guarantees. The lease payments also include the exercise price of a purchase option reasonably certain to be exercised by the Bank and payments of penalties for terminating a lease, if the lease term reflects the Bank exercising the option to terminate. Variable lease payments that do not depend on an index or a rate are recognized as expense in the period on which the event or condition that triggers the payment occurs.

In calculating the present value of lease payments, the Bank uses the incremental borrowing rate at the lease commencement date if the interest rate implicit in the lease is not readily determinable. After the commencement date, the amount of lease liabilities is increased to reflect the accretion of interest and reduced for the lease payments made. In addition, the carrying amount of lease liabilities is remeasured if there is a modification, a change in the lease term, a change in the in-substance fixed lease payments or a change in the assessment to purchase the underlying asset.

- 25 -

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2022

(Translation of Financial Statements originally issued in Spanish – See Note 48)

(Figures stated in thousands of pesos in constant currency)

3.3.2 The Bank as a lessor

The Bank grants loans through financial leases, recognizing the current value of lease payments as a financial asset, which is registered in the statement of financial position in the item “loans and other financing”. The difference between the total lease receivables and the current value of financing is recognized as interest to be accrued. This income is recognized during the term of the lease using the EIR method, which reflects a constant rate of return and is recognized in the statement of income as “Interest income”. Losses originated for impairment are included in the statement of income as “Allowance for loan losses” and changes in this accounting item are disclosed in exhibit R “Loss allowance– Allowance for uncollectibility risk”.

3.4 Business combinations

Business combinations are accounted for using the acquisition method. The cost of an acquisition is measured as the aggregate of the consideration transferred, which is measured at acquisition date fair value, and the amount of any non-controlling interests in the acquired company, measured under IFRS.

The Bank determines that it has acquired a business when the acquired set of activities and assets include an input and a substantive process that together significantly contribute to the ability to create outputs. The acquired process is considered substantive if it is critical to the ability to continue producing outputs, and the inputs acquired include an organized workforce with the necessary skills, knowledge, or experience to perform that process or it significantly contributes to the ability to continue producing outputs and is considered unique or scarce or cannot be replaced without significant cost, effort, or delay in the ability to continue producing outputs.

When the Bank acquires a business, it assesses the financial assets and liabilities assumed for appropriate classification and designation in accordance with the contractual terms, economic circumstances and pertinent conditions as of the acquisition date.

Any contingent consideration to be transferred by the acquirer will be recognized at fair value at the acquisition date. Contingent consideration classified as equity is not remeasured and its subsequent settlement is accounted for within equity. Contingent consideration classified as an asset or liability that is a financial instrument and within the scope of IFRS 9, is measured at fair value with the changes in fair value recognized in the statement of profit or loss. Other contingent consideration that is not within the scope of IFRS 9 is measured at fair value at each reporting date with changes in fair value recognized in profit or loss.

Goodwill is initially measured at cost (being the excess of the aggregate of the consideration transferred and the amount recognized for non-controlling interests and any previous interest held over the net identifiable assets acquired and liabilities assumed). If the fair value of the net assets acquired is in excess of the aggregate consideration transferred, the Group re-assesses whether it has correctly identified all of the assets acquired and all of the liabilities assumed and reviews the procedures used to measure the amounts to be recognized at the acquisition date. If the reassessment still results in an excess of the fair value of net assets acquired over the aggregate consideration transferred, then the gain is recognized in profit or loss.

After initial recognition, goodwill is measured at cost less any accumulated impairment losses as explained in section 3.10.

3.5 Investment in associates and joint arrangements

An associate is an entity over which the Bank has significant influence, i.e. the power to participate in the financial and operating policy decisions of such controlled entity, but without having the control thereof.

- 26 -

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2022

(Translation of Financial Statements originally issued in Spanish – See Note 48)

(Figures stated in thousands of pesos in constant currency)

A joint arrangement is an arrangement of which the Bank and other party or parties have joint control. Under IFRS 11 “Joint Arrangements”, investments in these arrangements are classified as joint ventures or joint operations depending on the contractual rights and obligations of each investor, regardless of the legal structure of the arrangement. A joint venture is an arrangement pursuant to which the parties having joint control of the arrangement have rights to the net assets of such arrangement. A joint operation is an arrangement pursuant to which the parties having joint control of the arrangement have rights to the assets and obligations for the liabilities, relating to the arrangement. The Bank has assessed the nature of its joint arrangements and determined that they are joint ventures.

These investments are accounted for using the equity method from the date on which they become an associate or a joint venture. On acquisition of the investment, any difference between the cost of the investment and the Entity’s share of the net fair value of the investee’s identifiable assets and liabilities are accounted: (i) as a goodwill, which is included in the carrying amount of the investment and is under impairment as explained in section 3.10; or (ii) any excess of the Entity´s share of the net fair value of the investee’s identifiable assets and liabilities over the cost of the investment is included as income. The Bank’s share in the profit or loss after the acquisition of its associates was accounted in the statement of income, and its share in other comprehensive income after the acquisition was accounted for in the consolidated statement of other comprehensive income. See also note 14.

3.6 Property, plant and equipment

The Bank chose the cost model for all kinds of assets accounted for in this accounting item. These assets were carried at their cost less any accumulated depreciation and any accumulated impairment losses, if applicable. The historical cost of acquisition includes all expenses directly attributable to the acquisition of the assets. Maintenance and repair costs were accounted for in the statement of income as incurred. Any replacement and significant improvement of an item of property, plant and equipment is recognized as an asset only when it is likely to produce any future economic benefits exceeding the return originally assessed for such asset.

Depreciation of the items of property, plant and equipment was assessed in proportion to the estimated months of useful life, depreciating completely the acquisition month of the assets and not the derecognition date. In addition, at least at each financial year-end, the Bank reviews if expectations regarding the useful life of each item of property, plant and equipment differ from previous estimates, in order to detect any material changes in useful life which, if confirmed, shall be adjusted applying the relevant correction to the depreciation of property, plant and equipment accounting item. Depreciation charges are recorded in the related statement of income as “Depreciation and amortization of fixed assets”.

The residual value of the assets, as a whole, does not exceed their recoverable amount.

3.7 Intangible Assets

Intangible assets acquired separately were initially measured at cost. After initial recognition, they were accounted for at cost less any accumulated depreciation (for those to which finite useful lives have been allocated) and any accumulated impairment losses, if applicable.

For internally generated intangible assets, only disbursements related to development are capitalized while the other disbursements are not capitalized and are recognized in the statement of income for the period in which such expenditure is incurred.

Useful lives of intangible assets may be finite or indefinite.

Intangible assets with finite useful lives are amortized over their economic useful lives and are reviewed in order to determine whether they had any impairment loss to the extent there is any evidence that indicates that the intangible asset may be impaired. The period and method of amortization for an intangible asset with a finite useful life are reviewed at least at the financial year-end of each reporting period. Depreciation charges of intangible assets with finite useful lives are accounted for in the statement of income as “Depreciation and amortization of fixed assets”.

Intangible assets with indefinite useful lives are not amortized and are subject to annual tests in order to determine whether they are impaired, either individually or as part of the cash-generating unit to which such intangible assets were allocated. The Bank has no intangible assets with indefinite useful lives.

- 27 -

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2022

(Translation of Financial Statements originally issued in Spanish – See Note 48)

(Figures stated in thousands of pesos in constant currency)

The gain or loss arising from the derecognition of an intangible asset shall be determined as the difference between the net disposal proceeds, if any, and the carrying amount of the asset, and it shall be recognized in the Statement of income when the asset is derecognized.

Development expenditure incurred in a specific project shall be recognized as intangible asset when the Bank can demonstrate all of the following:

- the technical feasibility of completing the intangible<br>asset so that it will be available for use or sale,
- its intention to complete the intangible asset<br>and use or sell it,
--- ---
- how the intangible asset will generate probable<br>future economic benefits,
--- ---
- the availability of adequate resources to complete<br>the development, and
--- ---
- its ability to measure reliably the expenditure<br>attributable to the intangible asset during its development.
--- ---

After initial recognition of the development expenditure as an asset, such asset shall be carried at its cost less any accumulated amortization and any applicable accumulated impairment losses. Amortization shall begin when the development phase has been completed and the asset is available for use. The asset amortizes over the period in which the asset is expected to generate future benefits. Amortization is accounted for in the statement of income as “Depreciation and amortization of fixed assets”. During the development phase, the asset is subject to annual tests to determine whether there is any impairment loss.

3.8 Investment Property

The Bank included certain real properties that holds for undetermined future use, which were recognized pursuant to IAS 40 “Investment Property”.

For this kind of property, the Bank chose the cost model as described in note 3.6 Property, plant and equipment.

An investment property is derecognized on disposal or when the investment property is permanently withdrawn from use and no future economic benefits are expected from its disposal. The difference between the net disposal proceeds and the carrying amount of the asset is recognized in the statement of income in the period of the retirement or disposal as “Other operating income”.

An entity shall transfer a property to, or from, investment property when, and only when, there is a change in use. For a transfer from investment property to an item of property, plant and equipment, the property’s deemed cost for subsequent accounting is its fair value on the date of change in use. If an item of property, plant and equipment becomes an investment property, the Bank recognizes the asset up to the date of change in use in accordance with the policy established for property, plant and equipment.

3.9 Non-current Assets Held for Sale

The Bank reclassifies in this category non-current assets of which the carrying amount will be recovered principally through a sale transaction rather than through continuing use. The asset (or disposal group) must be available for immediate sale in its present condition subject only to terms that are usual and customary for sales of such assets (or disposal groups) and its sale must be highly probable.

Non-current assets classified as held for sale are measured, when they are reclassified to this category, at the lower of carrying amount and fair value less costs to sell and are disclosed in a separate item in the statement of financial position. Once these assets are classified as held for sale, depreciation and amortization ceased.

Profit or loss generated in the sale of assets held for sale is recorded in the statement of income as “Other operating income”.

3.10 Impairment of Non-financial Assets

The Bank evaluates, at least at each fiscal year-end, whether there are any events or changes in the circumstances that may indicate the impairment of non-financial assets or whether there is any evidence that a non-financial asset may be impaired.

- 28 -

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2022

(Translation of Financial Statements originally issued in Spanish – See Note 48)

(Figures stated in thousands of pesos in constant currency)

When there is any evidence or when an annual impairment test is required for an asset, the Bank shall estimate the recoverable amount of such asset. If the carrying amount of an asset exceeds its recoverable amount, such asset is deemed impaired and its carrying amount shall be reduced to its recoverable amount. As of the date of issuance of these consolidated Financial Statements, there is no evidence of impairment of non-financial assets.

3.11 Provisions

The Bank recognizes a provision if and only if the following circumstances are met: (a) the Bank has a present obligation as a result of a past event; (b) it is probable (i.e. it is more likely than not) that an outflow of resources embodying economic benefits will be required to settle the obligation; and (c) a reliable estimate can be made of the amount of the obligation.

In order to determine the amount of provisions, the risks and uncertainties were considered taking into account the opinion of independent and internal legal advisors of the Bank. Where the effect of the time value of money is material, the provisions shall be discounted using a pre-tax rate that reflects, if applicable, current risks specific to the liability. When the discount is recognized, the effect of the provision derived from the lapse of time is accounted for as “Interest expense” in the statement of income. Based on the analysis carried out, the Bank recognized as provision the amount of the best estimate of the expenditure required to settle the present obligation at the end of each fiscal year.

The provisions accounted for by the Bank are reviewed at the end of each reporting period or fiscal year, as applicable, and adjusted to reflect the current best available estimate.

In addition, provisions are recognized with specific allocation to be used only for the expenditures for which they were originally recognized.

In the event: a) the obligation is possible; or b) it is not probable that an outflow of resources will be required for the Bank to settle the obligation; or c) the amount of the obligation cannot be estimated reliably, the contingent liability shall not be recognized and shall be disclosed in notes. Nevertheless, when the possibility of an outflow of resources is remote, no disclosures shall be made.

3.12 Recognition of income and expenses
3.12.1. Revenue from interests income and interests expense
--- ---

Revenue from interest received and expenses for interest paid were recognized according to their accrual period, applying the effective interest method, which is explained in section “Financial assets at amortized cost – Effective interest method”.

Revenue from interest received includes the return on fixed income investments and negotiable instruments, as well as the discount and premium on financial instruments.

Bond coupons were recognized at the time they were declared.

3.12.2. Loan commissions

Commission charges and direct incremental costs related with the granting of financing facilities were deferred and recognized adjusting the EIR thereof.

3.12.3. Service commissions

These revenues are recognized when (or to the extent) the Bank satisfies each performance obligation by transferring promised services for an amount that reflects the consideration to which the Bank expects to be entitled in exchange for such services.

At each contract inception, the Bank assesses the services promised in a contract and identifies as a performance obligation each promise to transfer a distinct service or a series of distinct services that are substantially the same and that have the same pattern of transfer.

- 29 -

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2022

(Translation of Financial Statements originally issued in Spanish – See Note 48)

(Figures stated in thousands of pesos in constant currency)

3.12.4. Non-financial revenue and expenses

These items are recognized according to the recognition criteria established in the Conceptual Framework, e.g. revenues should be accrued.

3.13 Customer Loyalty Program

The loyalty program offered by the Bank consists in accumulating points generated by purchases made with the credit cards, which can be exchanged by any reward (including, among other offers, products, benefits and awards) available in the program platform.

The Bank concluded that the rewards to be granted originate a separate performance obligation. Therefore, at the end of each fiscal year, the Bank recognized a provision for the rewards to be granted in “Other financial liabilities”.

Based on the variables that the Bank takes into account in order to estimate the fair value of the points granted to customers (and the relation thereof with the exchange of the reward), it is worth mentioning that such estimates are subject to a significant level of uncertainty (and variation) that should be considered. These considerations are described in detail in the section “Accounting judgments, estimates and assumptions” of this note.

3.14 Income Tax (see note 25)

Tax expense (tax income) comprises current tax expense (current tax income) and deferred tax expense (deferred tax income). This tax is accounted in the consolidated statement of income, except in the case of accounting items that are to be recognized directly in the statements of other comprehensive income. In this case, each accounting item is presented before assessing their impact on Income Tax, which is accounted for in the relevant accounting item.

- Current income tax: the consolidated current<br>income tax expense is the sum of the income tax expenses of the different entities that compose the Group (see note 1), which were assessed,<br>in each case, by applying the tax rate to taxable income, in accordance with Income Tax Law, or equivalent rule or provision, of the countries<br>in which any subsidiary operates.
- Deferred income tax: it is assessed based on<br>the separate Financial Statements of the Bank and of each of its subsidiaries and reflects the effects of temporary differences between<br>the carrying amount of an asset or liability in the statement of financial position and its tax base. Assets and liabilities are measured<br>using the tax rate that is expected to be applied to taxable income in the years in which these differences are expected to be settled<br>or recovered. The measurement of deferred tax liabilities and deferred tax assets reflects the tax consequences that will follow from<br>the manner in which the Bank and its subsidiaries expect, at the end of the reporting period, to recover or settle the carrying amount<br>of their assets and liabilities. Deferred tax assets and liabilities are measured by their nominal figures, without discount, the tax<br>rates that are expected to be applied in the fiscal year in which the asset shall be realized or the liability shall be settled. Deferred<br>tax assets are recognized when it is probable that taxable profit will be available against which the deductible temporary difference<br>can be utilized.
--- ---
3.15 Earnings per share
--- ---

Basic earnings per share shall be calculated by dividing Net profit attributable to parent’s shareholders of the Bank by the weighted average number of ordinary shares outstanding during the fiscal year. See also note 34.

3.16 Fiduciary activities and investment management

The Bank renders custody, administration, investment management and advisory services to third parties that originate the holding or placement of assets in the name of such third parties. These assets and income on them are not included in these consolidated Financial Statements, since they are not owned by the Bank. The commissions derived from these activities are accounted for as “Commissions income” in the statement of income. See also notes 37, 38.3 and 42.

- 30 -

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2022

(Translation of Financial Statements originally issued in Spanish – See Note 48)

(Figures stated in thousands of pesos in constant currency)

Accountingjudgments, estimates and assumptions

The preparation of these consolidated 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 fiscal year. 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.

In certain cases, the Financial Statements prepared in accordance with the accounting framework established by BCRA, require that the assets and liabilities to be recognized and/or presented at their fair value. 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 most advantageous market) duly informed and willing to transact in an orderly and current transaction. When prices in active markets are available, the Bank has used them as basis for valuation. When prices in active markets are not available, the Bank estimates those values as values based on the best available information, including the use of models and other assessment techniques. See additionally note 12.

In estimating accrued taxes, the Bank assesses the relative risks of the appropriate tax treatment considering judicial and regulatory guidance in the context of the tax position. Because of the complexity of tax laws and regulations, interpretation can be difficult and subject to legal judgment. It is possible that others, given the same information, may reach different reasonable conclusions regarding the estimated amounts of accrued taxes (for additional information regarding income tax see note 25).

In the normal course of business, the Bank is a party to lawsuits of various types. In note 43, contingent liabilities are disclosed with respect to existing or potential claims, lawsuits and other legal proceedings, and is booked an accrual for litigation when it is probable that future costs will be incurred and these costs can be reasonably estimated.

The measurement of impairment losses under IFRS 9 across all categories of financial instruments, taking into account the temporary exceptions established by Central Bank Communiqué “A” 6847, requires judgement, in particular, the estimation of the amount and timing of future cash flows and collateral values when determining impairment losses and the assessment of a significant increase in credit risk. These estimates are driven by a number of factors, changes that can result in different levels of allowances (for additional information regarding impairment losses under IFRS 9, see notes 3.2.4 and 45.1).

New standards adopted in thefiscal year

For the fiscal year beginning on January 1, 2022, the following amendments to IFRS are effective and they did not have a material impact on these consolidated 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 consolidated Financial Statements since currently, the Bank has not performed business combination transactions with contingent assets and liabilities.

- 31 -

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2022

(Translation of Financial Statements originally issued in Spanish – See Note 48)

(Figures stated in thousands of pesos in constant currency)

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 consolidated Financial Statements considering that the Bank does not have this type of item.

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 consolidated Financial Statements considering that the Bank does not have this type of item contract.

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 IFRS<br>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 consolidated 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 consolidated 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 consolidated 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. 
- 32 -

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2022

(Translation of Financial Statements originally issued in Spanish – See Note 48)

(Figures stated in thousands of pesos in constant currency)

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 judgment (having considered<br>the applicable tax law) whether such deductions are attributable for tax purposes to the liability recognized in the Financial Statements<br>(and interest expense) or to the related asset component (and interest expense). Professional judgment is important in determining whether<br>any temporary differences exist on initial recognition of the asset and liability. This amendment is applicable as of January 1, 2023.<br>The Bank does not expect this standard to have a material impact on the Financial Statements.
--- ---
d) Amendments to IFRS 16 “Leases” – Sale and Leaseback: the amendment to IFRS 16 specifies<br>the requirements that a seller-lessee uses in measuring the lease liability arising in a sale and leaseback transaction, to ensure the<br>seller-lessee does not recognize any amount of the gain or loss that relates to the right of use it retains. The amendment does not prescribe<br>specific measurement requirements for lease liabilities arising from a leaseback. The initial measurement of the lease liability arising<br>from a leaseback may result in a seller-lessee determining ‘lease payments’ that are different from the general definition<br>of lease payments. The seller lessee will need to develop and apply an accounting policy that results in information that is relevant<br>and reliable in accordance with IAS 8. This amendment is applicable as of January 1, 2024. The Bank does not expect this standard to have<br>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 December 31, 2022 and 2021, the Bank maintains the following maximum exposures to credit risk related to this type of transactions:

Composition 12/31/2022 12/31/2021
Undrawn commitments of credit cards and checking accounts 668,911,187 432,278,523
Guarantees granted (1) 7,208,822 4,424,104
Overdraft and unused agreed commitments (1) 613,294 1,699,653
Subtotal 676,733,303 438,402,280
Less: Allowance for Expected Credit Losses (ECL) (696,767 ) (664,446 )
Total 676,036,536 437,737,834
(1) Includes transactions not covered by BCRA debtor classification standard. The Guarantees granted include<br>an amount of 36,911 and 50,826 as of December 31, 2022 and 2021, respectively. The Overdraft and unused agreed commitments include an<br>amount of 453,507 and 187,409 as of December 31, 2022 and 2021, respectively.
--- ---

Disclosures related to the allowance for ECL are detailed in item 9.5 of note 9 “Loss allowance for expected credit losses on credit exposures not measured at fair value through profit or loss”.

- 33 -

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2022

(Translation of Financial Statements originally issued in Spanish – See Note 48)

(Figures stated in thousands of pesos in constant currency)

Risks related to the contingent transactions described above have been evaluated and are controlled within the framework of the Bank’s credit risk policy, as described in note 45.

5. DERIVATIVE FINANCIAL INSTRUMENTS

The Bank performs derivative transactions for trading purposes through Futures and Forwards. These are contractual agreements to buy or sell a specific financial instrument at a given price and a fixed date in the future. Future contracts, in turn, correspond to transactions for standardized amounts, executed in a regulated market and subject to daily cash margin requirements. Forward contracts are customized contracts traded on an over-the-counter market. The main differences in risks associated with these types of contracts are the credit risk and the liquidity risk. In forward contracts there is counterparty risk since the Bank has credit exposure to counterparties of the agreements. The credit risk related to futures contracts is deemed very low because daily cash margin requirements help guarantee these contracts are always fulfilled. In addition, forward contracts are generally settled in gross terms and, therefore, they are deemed to have a higher settlement risk than future contracts that, unless they are chosen to be performed by delivery, are settled on a net basis. Both types of contracts expose the Bank to market risk.

At the beginning, derivatives often imply only a mutual exchange of promises with little or no investment. Nevertheless, these instruments frequently imply high levels of leverage and are quite volatile. A relatively small movement in the value of the underlying asset could have a significant impact in profit or loss. Furthermore, over-the-counter derivatives may expose the Bank to risks related to the absence of an exchange market in which to close an open position. The Bank’s exposure for derivative contracts is monitored on a regular basis as part of its general risk management framework. Information on the Bank’s credit risk management objectives and policies is included in note 45.

Notional values indicate the amount of the underlying pending transactions at year end and are not indicative of either the market risk or the credit risk. The fair value of the derivative financial instruments recognized as assets or liabilities in the consolidated statement of financial position is presented as follows. Changes in fair values were accounted for in profit or loss, the breakdown of which is disclosed in exhibit Q “Breakdown of profit or loss”.

12/31/2022 12/31/2021
Derivative financial assets Underlying<br><br> Notional <br><br>Value Notional Value (in thousand) Fair<br> <br>Value Notional Value (in thousand) Fair<br> <br>Value
Transactions of foreign currency contract without delivery of underlying asset Dollars 62,971 42,899 1,270 2,524
Total derivatives held for trading 62,971 42,899 1,270 2,524
12/31/2022 12/31/2021
--- --- --- --- --- ---
Derivative financial liabilities Underlying<br><br> Notional<br><br> Value Notional Value (in thousand) Fair<br> <br>Value Notional Value (in thousand) Fair<br> <br>Value
Transactions of foreign currency contract without delivery of underlying asset Dollars 985 2,371 870 4,933
Total derivatives held for trading 985 2,371 870 4,933

Derivatives held for trading are generally related to products offered by the Bank to its customers. The Bank shall also take positions expecting to benefit from favorable changes in prices, rates or indexes, i.e. take advantage of the high level of leverage of these contracts to obtain yields, assuming at the same time high market risk. Additionally, they may be held for arbitrage, i.e. to obtain a benefit free of risk for the combination of a derivative product and a portfolio of financial assets, trying to benefit from anomalous situations in the prices of assets in the markets.

- 34 -

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2022

(Translation of Financial Statements originally issued in Spanish – See Note 48)

(Figures stated in thousands of pesos in constant currency)

6. REPO TRANSACTIONS

As of December 31, 2022 and 2021, the Bank has agreed-upon repurchase and reverse repurchase transactions of government and private securities, in absolute value, for 61,929,317 and 61,176,357, respectively. Maturity of the agreed-upon transactions as of December 2022 occurred during the month of January 2023. Furthermore, the securities received guarantee repurchase transactions as of December 31, 2022 and 2021, total 68,130,397 and 68,389,352, respectively and were recognized as an off balance sheet transaction.

Profit generated by the Bank as a result of its repurchase transactions arranged during the fiscal years ended on December 31, 2022 and 2021, total 13,284,829 and 16,627,587, respectively, and were accounted for in “Interest income” in the consolidated statement of income. In addition, losses generated by the Bank as a result of its reverse repurchase transactions arranged during the fiscal years ended on December 31, 2022 and 2021 total 975,643 and 573,796, respectively, and were recognized as “Interest expense” in the consolidated statement of income.

7. OTHER FINANCIAL ASSETS

The composition of the other financial assets as of December 31, 2022 and 2021 is as follows:

Composition 12/31/2022 12/31/2021
Sundry debtors (see note 11) 26,404,763 19,599,371
Receivables from spot sales of foreign currency pending settlement 16,005,430 30,130,186
Receivables from other spot sales pending settlement 10,245,861 13,401,002
Private securities 4,508,266 4,033,290
Receivables from spot sales of government securities pending settlement 488,596 176,965
Other 382,648 1,207,925
Subtotal 58,035,564 68,548,739
Less: Allowances for ECL (91,041 ) (51,518 )
Total 57,944,523 68,497,221

Disclosures related to allowance for ECL are detailed in item 9.4 of note 9 “Loss allowance for expected credit losses on credit exposures not measured at fair value through profit or loss”.

8. LOANS AND OTHER FINANCING

The composition of loans and other financing as of December 31, 2022 and 2021 is as follows:

Composition 12/31/2022 12/31/2021
Non-financial Public sector (1) 2,206,935 4,628,306
Other Financial Entities 927,272 2,941,876
Other Financial Entities 935,413 2,948,987
Less: allowance for ECL (8,141 ) (7,111 ) 
- 35 -

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2022

(Translation of Financial Statements originally issued in Spanish – See Note 48)

(Figures stated in thousands of pesos in constant currency)

Composition (contd.) 12/31/2022 12/31/2021
Non-financial Private Sector and Foreign Residents 595,466,823 678,758,244
Overdrafts 49,250,055 47,516,346
Documents 81,773,760 82,408,943
Mortgage loans 61,905,907 81,213,071
Pledge loans 9,581,277 14,727,607
Personal loans 142,529,651 190,678,438
Credit cards 190,779,144 184,981,594
Financial leases 1,386,801 931,091
Other 69,254,426 95,055,283
Less: allowance for ECL (10,994,198 ) (18,754,129 )
Total 598,601,030 686,328,426

(1) As explained in note 3, ECL are not calculated to public sector exposures.

9. 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.

Exhibit P discloses financial assets measured at fair value on a recurring basis and financial assets not recognized at fair value. This classification is made pursuant to the expressed in note 3 “Basis for the preparation of these Financial Statements and applicable accounting standards”. Additionally, note 12 explains the information related to the valuation process.

Moreover, considering the temporary exclusion established by BCRA mentioned in note 3 “Applicable accounting standards” the Bank applies the impairment requirements for the recognition and measurement of a loss allowance for financial assets measured at amortized cost or at fair value through other comprehensive income, except for public sector exposures. In addition, the Bank applies the impairment requirements for guarantees granted, undrawn commitments of credit cards and checking accounts, letter of credits, which are not recognized in the consolidated statement of financial position.

For the purpose of assessing the Bank’s credit risk exposure and identifying material credit risk concentration, disclosures regarding credit risk of financial assets and items not recognized in the statement of financial position are as follows:

9.1 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 12/31/2022 12/31/2021
Loans and other financing 609,603,369 705,089,666
Individual assessment 108,933,970 167,931,016
Collective assessment 500,669,399 537,158,650
Less: Allowance for ECL (1) (11,002,339 ) (18,761,240 )
Total 598,601,030 686,328,426

(1) As explained in note 3, ECL are not calculated to public sector exposures.

- 36 -

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2022

(Translation of Financial Statements originally issued in Spanish – See Note 48)

(Figures stated in thousands of pesos in constant currency)

As explained in note 45.1.3 “Additional Forward-looking allowances based on expert credit judgment”, section “Adjustment for uncertainty about conditions of accessing loans to MIPYMES”, as of December 31, 2022 and as a result of the incremental effect estimated in the allowance for ECL for covering an uncertainty scenario about the condition of accessing loans to PYMES, the Bank decided to record an adjustment on a forward-looking basis. As of December 31, 2022, the estimated amount was 1,514,000.

The following table shows the credit quality and the carrying amount of credit risk, based on the Bank’s credit risk rating system, the probability of default (PD) and the year-end stage classification, taking into account what was mentioned in the previous paragraph. The amounts are presented gross of the impairment allowances.

12/31/2022
Internal<br> rating grade Range PD Stage 1 Stage 2 Stage 3 Total %
Performing 580,654,510 12,586,012 593,240,522 97.32
High grade 0.00%<br> - 3.50% 540,102,835 2,466,546 542,569,381 89.00
Standard grade 3.51%<br> - 7.00% 23,952,353 3,046,375 26,998,728 4.43
Sub-standard grade 7.01%<br> -  33.00% 16,599,322 7,073,091 23,672,413 3.89
Past due but not impaired<br> (1) 33.01%<br> - 99.99% 3,787,155 7,563,530 11,350,685 1.86
Impaired 100% 5,012,162 5,012,162 0.82
Total 584,441,665 20,149,542 5,012,162 609,603,369 100
% 95.87 3.31 0.82 100
12/31/2021
--- --- --- --- --- --- ---
Internal<br> rating grade Range PD Stage 1 Stage 2 Stage 3 Total %
Performing 665,422,537 16,843,145 682,265,682 96.76
High grade 0.00%<br> - 3.50% 559,233,631 1,616,123 560,849,754 79.54
Standard<br> grade 3.51%<br> - 7.00% 82,840,667 4,895,725 87,736,392 12.44
Sub-standard<br> grade 7.01%<br> - 33.00% 23,348,239 10,331,297 33,679,536 4.78
Past due but not impaired<br> (1) 33.01%<br> - 99.99% 6,163,005 10,235,284 16,398,289 2.33
Impaired 100% 6,425,695 6,425,695 0.91
Total 671,585,542 27,078,429 6,425,695 705,089,666 100
% 95.25 3.84 0.91 100
(1) It also includes transactions which are more than 5 days past due independently of the PD range assigned. 
- 37 -

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2022

(Translation of Financial Statements originally issued in Spanish – See Note 48)

(Figures stated in thousands of pesos in constant currency)

9.1.1 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 45 section “Credit risk”.

12/31/2022
Internal<br> rating grade Range<br> PD Stage<br> 1 Stage<br> 2 Stage<br> 3 Total %
Performing 104,988,725 2,570,188 107,558,913 98.74
High grade 0.00%<br> - 3.50% 98,109,324 1,240,943 99,350,267 91.20
Standard grade 3.51%<br> - 7.00% 3,643,178 626,775 4,269,953 3.92
Sub-standard grade 7.01%<br> - 33.00% 3,236,223 702,470 3,938,693 3.62
Past due but not impaired<br> (1) 33.01%<br> - 99.99%
Impaired 100% 1,375,057 1,375,057 1.26
Total 104,988,725 2,570,188 1,375,057 108,933,970 100
% 96.38 2.36 1.26 100
12/31/2021
--- --- --- --- --- --- --- --- --- --- --- --- ---
Internal<br> rating grade Range<br> PD Stage<br> 1 Stage<br> 2 Stage<br> 3 Total %
Performing 157,218,100 6,971,767 164,189,867 97.77
High grade 0.00%<br> - 3.50% 118,533,334 842,799 119,376,133 71.09
Standard grade 3.51%<br> - 7.00% 31,814,097 2,447,336 34,261,433 20.40
Sub-standard grade 7.01%<br> - 33.00% 6,870,669 3,681,632 10,552,301 6.28
Past due but not impaired<br> (1) 33.01%<br> - 99.99% 2,253,730 2,253,730 1.34
Impaired 100% 1,487,419 1,487,419 0.89
Total 157,218,100 9,225,497 1,487,419 167,931,016 100
% 93.62 5.49 0.89 100
(1) It also includes transactions which are more than 5 days past due independently of the PD range assigned.
--- ---

An analysis of changes in the gross carrying amount and the corresponding ECL allowances in relation to commercial lending is as follows:

- 38 -

NOTESTO THE CONSOLIDATED FINANCIAL STATEMENTS

AS OFDECEMBER 31, 2022

(Translation of Financial Statements originally issued in Spanish – See Note 48)

(Figures stated in thousands of pesos in constant currency)

Stage
1 2 3 Total
Gross Carrying amount as of January 1, 2022 157,218,100 9,225,497 1,487,419 167,931,016
Assets originated or purchased (1) 126,856,246 1,567,141 128,423,387
Assets derecognized or repaid (1) (96,228,005 ) (3,653,073 ) (499,552 ) (100,380,630 )
Transfers to Stage 1 24,929 (24,929 )
Transfers to Stage 2
Transfers to Stage 3 (193,159 ) (1,602,140 ) 1,795,299
Amounts Written Off
Monetary effects (82,689,386 ) (2,942,308 ) (1,408,109 ) (87,039,803 )
As of December 31, 2022 104,988,725 2,570,188 1,375,057 108,933,970
Stage
--- --- --- --- --- --- --- --- --- --- --- --- ---
1 2 3 Total
Gross Carrying amount as of January 1, 2021 200,916,176 12,926,836 4,594,640 218,437,652
Assets originated or purchased (1) 199,095,323 8,122,700 207,218,023
Assets derecognized or repaid (1) (160,666,314 ) (7,054,896 ) (2,635,883 ) (170,357,093 )
Transfers to Stage 1 1,051 (1,051 )
Transfers to Stage 2 255,556 (255,556 )
Transfers to Stage 3 (2,014,633 ) (324,031 ) 2,338,664
Amounts Written Off (1,796,735 ) (1,796,735 )
Monetary effects (80,113,503 ) (4,699,617 ) (757,711 ) (85,570,831 )
As of December 31, 2021 157,218,100 9,225,497 1,487,419 167,931,016
(1) It includes the increases /decreases of the gross carrying amount for existing transactions at the beginning of the fiscal year.
--- ---
Stage
--- --- --- --- --- --- --- --- --- --- --- --- ---
1 2 3 Total
ECL amount as of January 1, 2022 1,297,006 4,892,299 1,204,240 7,393,545
Assets originated or purchased (1) 1,271,329 314,458 1,585,787
Assets derecognized or repaid (1) (850,583 ) (2,685,539 ) (720,269 ) (4,256,391 )
Transfers to Stage 1 15,564 (15,564 )
Transfers to Stage 2
Transfers to Stage 3 (124,148 ) (1,064,701 ) 1,188,849
Amounts Written Off
Monetary effects (666,406 ) (1,108,839 ) (903,876 ) (2,679,121 )
As of December 31, 2022 942,762 332,114 768,944 2,043,820 
- 39 -

NOTESTO THE CONSOLIDATED FINANCIAL STATEMENTS

AS OFDECEMBER 31, 2022

(Translation of Financial Statements originally issued in Spanish – See Note 48)

(Figures stated in thousands of pesos in constant currency)

Stage
1 2 3 Total
ECL amount as of January 1, 2021 1,943,642 2,229,728 2,301,119 6,474,489
Assets originated or purchased (1) 3,460,588 6,433,039 9,893,627
Assets derecognized or repaid (1) (1,783,177 ) (1,232,125 ) (1,235,429 ) (4,250,731 )
Transfers to Stage 1 38 (38 )
Transfers to Stage 2 57,010 (57,010 )
Transfers to Stage 3 (1,634,225 ) (82,961 ) 1,717,186
Amounts Written Off (887,975 ) (887,975 )
Monetary effects (689,860 ) (2,512,354 ) (633,651 ) (3,835,865 )
As of December 31, 2021 1,297,006 4,892,299 1,204,240 7,393,545

(1) It includes the increases /decreases of the ECL amount for existing transactions at the beginning of the fiscal year.

9.1.2 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 45.

12/31/2022
Internal rating grade Range PD Stage 1 Stage 2 Stage 3 Total %
Performing 475,665,785 10,015,824 485,681,609 97.01
High grade 0.00% - 3.50% 441,993,511 1,225,603 443,219,114 88.53
Standard grade 3.51% - 7.00% 20,309,175 2,419,600 22,728,775 4.54
Sub-standard grade 7.01% - 33.00% 13,363,099 6,370,621 19,733,720 3.94
Past due but not impaired (1) 33.01% -99.99% 3,787,155 7,563,530 11,350,685 2.27
Impaired 100 % 3,637,105 3,637,105 0.72
Total 479,452,940 17,579,354 3,637,105 500,669,399 100
% 95.76 3.51 0.73 100
12/31/2021
--- --- --- --- --- --- --- --- --- --- --- --- --- ---
Internal rating grade Range PD Stage 1 Stage 2 Stage 3 Total %
Performing 508,204,437 9,871,378 518,075,815 96.45
High grade 0.00% - 3.50% 440,700,297 773,324 441,473,621 82.19
Standard grade 3.51% - 7.00% 51,026,570 2,448,389 53,474,959 9.95
Sub-standard grade 7.01% - 33.00% 16,477,570 6,649,665 23,127,235 4.31
Past due but not impaired (1) 33.01% -99.99% 6,163,005 7,981,554 14,144,559 2.63
Impaired 100 % 4,938,276 4,938,276 0.92
Total 514,367,442 17,852,932 4,938,276 537,158,650 100
% 95.76 3.32 0.92 100 
- 40 -

NOTESTO THE CONSOLIDATED FINANCIAL STATEMENTS

AS OFDECEMBER 31, 2022

(Translation of Financial Statements originally issued in Spanish – See Note 48)

(Figures stated in thousands of pesos in constant currency)

(1) It also includes transactions which are more than 5 days past due independently of the PD range assigned.

An analysis of changes in the gross carrying amount and the corresponding ECL allowances in relation to consumer lending is as follows:

Stage
1 2 3 Total
Gross Carrying amount as of January 1, 2022 514,367,442 17,852,932 4,938,276 537,158,650
Assets originated or purchased (1) 447,961,742 9,317,412 457,279,154
Assets derecognized or repaid (1) (159,048,675 ) (1,273,146 ) (807,303 ) (161,129,124 )
Transfers to Stage 1 6,163,988 (6,037,876 ) (126,112 )
Transfers to Stage 2 (10,086,275 ) 10,262,715 (176,440 )
Transfers to Stage 3 (3,810,466 ) (782,063 ) 4,592,529
Amounts Written Off (276,975 ) (516,975 ) (2,003,678 ) (2,797,628 )
Monetary effects (315,817,841 ) (11,243,645 ) (2,780,167 ) (329,841,653 )
As of December 31, 2022 479,452,940 17,579,354 3,637,105 500,669,399
Stage
--- --- --- --- --- --- --- --- --- --- --- --- ---
1 2 3 Total
Gross Carrying amount as of January 1, 2021 531,047,239 32,272,387 4,313,911 567,633,537
Assets originated or purchased (1) 500,417,533 12,081,472 512,499,005
Assets derecognized or repaid (1) (250,178,218 ) (15,028,105 ) (1,962,542 ) (267,168,865 )
Transfers to Stage 1 12,587,619 (12,329,136 ) (258,483 )
Transfers to Stage 2 (11,613,367 ) 11,764,486 (151,119 )
Transfers to Stage 3 (5,570,742 ) (1,258,523 ) 6,829,265
Amounts Written Off (295,452 ) (555,071 ) (1,317,105 ) (2,167,628 )
Monetary effects (262,027,170 ) (9,094,578 ) (2,515,651 ) (273,637,399 )
As of December 31, 2021 514,367,442 17,852,932 4,938,276 537,158,650
(1) It includes the increases /decreases of the gross carrying amount for existing transactions at the beginning of the fiscal year.
--- ---
Stage
--- --- --- --- --- --- --- --- --- --- --- --- ---
1 2 3 Total
ECL amount as of January 1, 2022 5,466,567 1,955,166 3,945,962 11,367,695
Assets originated or purchased (1) 6,203,517 1,026,424 7,229,941
Assets derecognized or repaid (1) (2,720,013 ) 500,743 680,084 (1,539,186 )
Transfers to Stage 1 697,130 (593,329 ) (103,801 )
Transfers to Stage 2 (212,325 ) 314,878 (102,553 )
Transfers to Stage 3 (1,896,929 ) (139,667 ) 2,036,596
Amounts Written Off (16,666 ) (114,855 ) (1,643,923 ) (1,775,444 )
Monetary effects (3,063,405 ) (1,137,933 ) (2,123,149 ) (6,324,487 )
As of December 31, 2022 4,457,876 1,811,427 2,689,216 8,958,519 
- 41 -

NOTESTO THE CONSOLIDATED FINANCIAL STATEMENTS

AS OFDECEMBER 31, 2022

(Translation of Financial Statements originally issued in Spanish – See Note 48)

(Figures stated in thousands of pesos in constant currency)

Stage
1 2 3 Total
ECL amount as of January 1, 2021 13,347,709 7,072,534 2,574,132 22,994,375
Assets originated or purchased (1) 7,101,540 1,375,224 8,476,764
Assets derecognized or repaid (1) (11,127,080 ) (2,932,836 ) 951,902 (13,108,014 )
Transfers to Stage 1 2,603,881 (2,444,389 ) (159,492 )
Transfers to Stage 2 (538,509 ) 619,609 (81,100 )
Transfers to Stage 3 (3,013,428 ) (494,401 ) 3,507,829
Amounts Written Off (32,106 ) (220,682 ) (844,929 ) (1,097,717 )
Monetary effects (2,875,440 ) (1,019,893 ) (2,002,380 ) (5,897,713 )
As of December 31, 2021 5,466,567 1,955,166 3,945,962 11,367,695
(1) It includes the increases /decreases of the ECL amount for existing transactions at the beginning of the fiscal year.
--- ---
9.2 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.
The table below shows the exposures gross of impairment allowances by stage:
12/31/2022
--- --- --- --- --- --- --- ---
Composition Stage 1 Stage 2 Stage 3 Total %
Corporate bonds 1,039,008 1,039,008 77.11
Financial trust 308,364 308,364 22.89
Total 1,347,372 1,347,372 100
% 100 100
12/31/2021
--- --- --- --- --- --- --- ---
Composition Stage 1 Stage 2 Stage 3 Total %
Corporate bonds 168,471 168,471 32.67
Financial trust 347,130 347,130 67.33
Total 515,601 515,601 100
% 100 100

The related ECL for corporate bonds as of December 31, 2022 and 2021 amounted to 555 and 1,032, respectively. The ECL related to financial trusts as of December 31, 2022 and 2021 amounted to 241 and 25, respectively. During 2022 and 2021, there were no transfers between stages.

- 42 -

NOTESTO THE CONSOLIDATED FINANCIAL STATEMENTS

AS OFDECEMBER 31, 2022

(Translation of Financial Statements originally issued in Spanish – See Note 48)

(Figures stated in thousands of pesos in constant currency)

9.3 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 exhibit A.

9.4 Other financial assets

The table below shows the exposures gross of impairment allowances by stage:

12/31/2022
Composition Stage 1 Stage 2 Stage 3 Total %
Other financial assets 53,527,298 53,527,298 100
Total 53,527,298 53,527,298 100
% 100 100
12/31/2021
--- --- --- --- --- --- --- --- ---
Composition Stage 1 Stage 2 Stage 3 Total %
Other financial assets 64,515,449 64,515,449 100
Total 64,515,449 64,515,449 100
% 100 100

The ECL related to these types of instruments amounted to 91,041 and 51,518 as of December 31, 2022 and 2021, respectively, including the ECL related to the payments to be collected for the transaction mentioned in note 11. During 2022 and 2021, there were no transfers between stages.

9.5 Loans commitment

The table below shows the exposures gross of impairment allowances by stage:

12/31/2022
Composition Stage 1 Stage 2 Stage 3 Total %
Undrawn commitments of credit cards and checking accounts 658,112,548 10,797,137 1,502 668,911,187 98.92
Guarantees granted 7,171,911 7,171,911 1.06
Overdraft and unused agreed commitments 159,787 159,787 0.02
Total 665,444,246 10,797,137 1,502 676,242,885 100
% 98.40 1.60 0.0 100 
- 43 -

NOTESTO THE CONSOLIDATED FINANCIAL STATEMENTS

AS OFDECEMBER 31, 2022

(Translation of Financial Statements originally issued in Spanish – See Note 48)

(Figures stated in thousands of pesos in constant currency)

12/31/2021
Composition Stage 1 Stage 2 Stage 3 Total %
Undrawn commitments of credit cards and checking accounts 428,815,172 3,456,762 6,589 432,278,523 98.65
Guarantees granted 4,261,606 111,672 4,373,278 1.00
Overdraft and unused agreed commitments 1,512,244 1,512,244 0.35
Total 434,589,022 3,568,435 6,589 438,164,045 100
% 99.18 0.82 0.00 100

The related ECL for undrawn commitments of credit cards and checking accounts as of December 31, 2022 and 2021 amounted to 651,247 and 625,820, respectively. The ECL related to guarantees granted as of December 31, 2022 and 2021 amounted to 45,447 and 32,783, respectively. The ECL related to overdraft and unused agreed commitments as of December 31, 2022 and 2021 amounted to 73 and 5,843, respectively.

For undrawn commitments of credit cards and checking accounts, during 2022 there were transfers of the carrying amounts to Stage 1, Stage 2 and Stage 3 for an amount of (5,850,199), 5,793,518 and 56,681, respectively, and there were transfers of the ECL to Stage 1, Stage 2 and Stage 3 for an amount of 49,643, (49,896) and 253, respectively. For the other items, there were no transfers between stages during 2022 and 2021.

In exhibit R “Value adjustment for credit losses – Allowance for uncollectibility risk”, the ECL movements by portfolio and products are also disclosed.

10. FINANCIAL ASSETS DELIVERED AS GUARANTEE

The composition of financial assets delivered as guarantee as of December 31, 2022 and 2021 is as follows:

Carrying amount
Composition 12/31/2022 12/31/2021
For transactions with the BCRA 24,824,547 30,242,005
For guarantee deposits 5,795,731 4,751,142
Total 30,620,278 34,993,147

The Bank’s Management considers there shall be no losses due to the restrictions on the above listed financial assets.

11. EQUITY INSTRUMENTS AT FAIR VALUE THROUGH PROFIT OR LOSS – PRISMA MEDIOS DE PAGO SA

The composition of equity investment at fair value through profit or loss as of December 31, 2022 and 2021, is detailed in the Exhibit A.

In relation to the Bank’s holding in Prisma Medios de Pago SA (Prisma), on January 21, 2019, the Bank, together with the other shareholders, accepted a purchase offer made by AI ZENITH (Netherlands) B.V. (a company related to Advent International Corporation) for the acquisition of 1,933,051 common shares 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 stock in such company.

- 44 -

NOTES TO THE CONSOLIDATEDFINANCIAL STATEMENTS AS OF DECEMBER 31, 2022

(Translation of Financial Statements originally issued in Spanish – See Note 48)

(Figures stated in thousands of pesos in constant currency)

On February 1, 2019, the Bank completed the transfer of such shares for a total purchase price of (in thousands) USD 64,542 out of which the Bank received on the date hereof (in thousands) USD 38,311 and the payment of the balance for an amount of (in thousands) USD 26,231 shall be deferred for 5 years as follows: (i) 30% of such amount in pesos adjusted by Unit of Purchasing Power (UVA, for its acronym in Spanish) at a 15% nominal annual rate; and (ii) 70% in US Dollars at a 10% nominal annual rate. The purchase price is guaranteed by the issuance of notes in favor of the Bank and pledges of the transferred shares.

During July 2019, the process to determine the final selling price of the shares of Prisma 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 thousands) 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 is recorded in the statement of income under “Net gain 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.

12. FAIR VALUE QUANTITATIVE AND QUALITATIVE DISCLOSURES

The fair value is the amount at which an asset can be exchanged, or at which a liability can be settled, in mutual independent terms and conditions between participants of the principal market (or the most advantageous market) who are duly informed and willing to transact in an orderly and current transaction, at the measurement date under the current market conditions whether the price is directly observable or estimated using a valuation technique under the assumption that the Bank is an ongoing business.

When a financial instrument is quoted in a liquid and active market, its price in the market in a real transaction provides the most reliable evidence of its fair value. Nevertheless, when there is no quoted price in the market or it cannot be evidence of the fair value of such instrument, in order to determine such fair value, the entities may use the market value of another instrument with similar characteristics, the analysis of discounted cash flows or other applicable techniques, which shall be significantly affected by the assumptions used.

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.

- 45 -

NOTES TO THE CONSOLIDATEDFINANCIAL STATEMENTS AS OF DECEMBER 31, 2022

(Translation of Financial Statements originally issued in Spanish – See Note 48)

(Figures stated in thousands of pesos in constant currency)

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.
--- ---

Exhibit P presents the hierarchy in the Bank’s financial asset and liability at fair value measurement.

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 fiscal year, 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 December 31, 2022 and 2021, the Bank has neither changed the techniques nor the assumptions used to estimate the fair value of the financial instruments.

Below is the reconciliation between the amounts at the beginning and at the end of the fiscal year, of the financial assets recognized at fair value categorized as level 3:

- 46 -

NOTES TO THE CONSOLIDATEDFINANCIAL STATEMENTS AS OF DECEMBER 31, 2022

(Translation of Financial Statements originally issued in Spanish – See Note 48)

(Figures stated in thousands of pesos in constant currency)

As of December 31, 2022
Reconciliation Debt instruments Other financial assets Equity instruments at fair value through profit or loss
Amount at the beginning 2,175,359 60,427 4,114,042
Transfers to Level 3
Transfers from Level 3
Profit and loss 731,241 5,064 3,596
Recognition and derecognition (801,964 ) 21,061 (2,508,037 )
Monetary effects (1,072,772 ) (37,137 ) (924,618 )
Amount at the end of the fiscal year 1,031,864 49,415 684,983
As of December 31, 2021
--- --- --- --- --- --- --- ---
Reconciliation Debt instruments Other financial assets Equity instruments at fair value through profit or loss
Amount at the beginning 1,112,717 76,973 4,860,694
Transfers to Level 3
Transfers from Level 3
Profit and loss 686,775 3,562 1,211,173
Recognition and derecognition 978,699 10,002 (43,437 )
Monetary effects (602,832 ) (30,110 ) (1,914,388 )
Amount at the end of the fiscal year 2,175,359 60,427 4,114,042

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 11 as of December 31, 2021).

Range<br> of inputs
Fair<br> value of Significant 12/31/2022
Level<br> 3 Assets Valuation unobservable Range<br> of inputs
Composition 12/31/2022 technique inputs Low High Unit
Provisional<br> Debt Securities of Financial Trusts 593,120 Income<br> approach (discounted cash flow) Discount<br> rate in pesos 69.99 83.83 %
Corporate<br> bonds 434,678 Income<br> approach (discounted cash flow) Discount<br> rate in pesos 76.98 86.47 % 
- 47 -

NOTES TO THE CONSOLIDATEDFINANCIAL STATEMENTS AS OF DECEMBER 31, 2022

(Translation of Financial Statements originally issued in Spanish – See Note 48)

(Figures stated in thousands of pesos in constant currency)

Range<br> of inputs
Fair<br> value of Significant 12/31/2021
Level<br> 3 Assets Valuation unobservable Range<br> of inputs
Composition 12/31/2021 technique inputs Low High Unit
Provisional<br> Debt Securities of Financial Trusts 626,600 Income<br> approach (discounted cash flow) Discount<br> rate in pesos 43.32 46.14 %
Corporate<br> bonds 1,543,003 Income<br> approach (discounted cash flow) Discount<br> 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.

12/31/2022 12/31/2021
Favorable <br> changes Unfavorable <br> changes Favorable changes Unfavorable <br> changes
Provisional Debt Securities of Financial Trusts 1,223 (1,176 ) 300 (295 )
Corporate bonds 2,622 (2,537 ) 29,777 (27,449 )

Changes in fair value levels

The Bank monitors the availability of information in the market to evaluate the classification of financial instruments into the fair value hierarchy as well as the resulting determination of transfers between levels 1, 2 and 3 at each period end.

As of December 31, 2022 and 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 consolidated Financial Statements:

- Instruments with fair value similar to the carrying<br>amount: financial assets and liabilities that are liquid or have short-term maturities (less than three months) were deemed to have a<br>fair value similar to the carrying amount.
- Fixed and variable rate of financial instruments:<br>the fair value of financial assets was recognized discounting future cash flows at current market rates for each fiscal year, for financial<br>instruments of similar characteristics. The estimated fair value of fixed-interest rate deposits and liabilities was assessed discounting<br>future cash flows by using estimated interest rates for deposits or placings with similar maturities to those of the Bank’s portfolio.
--- ---
- For public listed assets and liabilities, or<br>those for which the prices are reported by certain renowned pricing providers, the fair value was determined based on such prices.
--- --- 
- 48 -

NOTES TO THE CONSOLIDATEDFINANCIAL STATEMENTS AS OF DECEMBER 31, 2022

(Translation of Financial Statements originally issued in Spanish – See Note 48)

(Figures stated in thousands of pesos in constant currency)

The following table shows a comparison between the fair value and the carrying amount of financial instruments not measured at fair value as of December 31, 2022 and 2021:

12/31/2022
Composition Carrying amount Level 1 Level 2 Level 3 Fair value
Financial assets
Cash and deposits<br> in banks 250,089,093 250,089,093 250,089,093
Repo transactions 61,929,317 61,929,317 61,929,317
Other financial assets 53,436,257 53,436,257 53,436,257
Loans and other financing 598,601,030 521,939,679 521,939,679
Other debt securities 599,594,038 511,722,746 82,669,663 96,304 594,488,713
Financial assets delivered<br> as guarantee 30,620,278 30,620,278 30,620,278
Total 1,594,270,013 907,797,691 82,669,663 522,035,983 1,512,503,337
Financial liabilities
Deposits 1,295,395,069 649,076,325 645,261,404 1,294,337,729
Other financial liabilities 135,091,316 130,781,463 4,371,904 135,153,367
Financing received from<br> the BCRA and other financial institutions 2,449,342 2,382,151 51,963 2,434,114
Issued corporate bonds 2,715,556 2,638,551 2,638,551
Subordinated corporate<br> bonds 72,129,837 58,815,433 58,815,433
Total 1,507,781,120 782,239,939 65,877,851 645,261,404 1,493,379,194
12/31/2021
--- --- --- --- --- ---
Composition Carrying amount Level 1 Level 2 Level 3 Fair value
Financial assets
Cash<br> and deposits in banks 335,692,114 335,692,114 335,692,114
Repo transactions 61,176,357 61,176,357 61,176,357
Other<br> financial assets 64,463,931 64,416,765 64,416,765
Loans<br> and other financing 686,328,426 637,724,702 637,724,702
Other<br> debt securities 46,838,533 44,550,843 1,265,887 304,156 46,120,886
Financial<br> assets delivered as guarantee 34,993,147 34,993,147 34,993,147
Total 1,229,492,508 540,829,226 1,265,887 638,028,858 1,180,123,971
Financial liabilities
Deposits 1,147,041,028 650,045,751 496,348,778 1,146,394,529
Other<br> financial liabilities 131,278,389 129,516,534 2,794,914 132,311,448
Financing<br> received from the BCRA and other financial institutions 852,660 771,790 74,752 846,542
Issued<br> corporate bonds 5,825,893 5,128,186 5,128,186
Subordinated<br> corporate bonds 81,762,819 67,123,964 67,123,964
Total 1,366,760,789 780,334,075 75,121,816 496,348,778 1,351,804,669 
- 49 -

NOTES TO THE CONSOLIDATEDFINANCIAL STATEMENTS AS OF DECEMBER 31, 2022

(Translation of Financial Statements originally issued in Spanish – See Note 48)

(Figures stated in thousands of pesos in constant currency)

13. BUSINESS COMBINATIONS

On October 1, 2021, the Bank exercised a call option to reach 24.99% of the equity interest in Fintech SGR, being this 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 115,632 1,673,303
Cash and deposits in Banks 487 180,729
Debt Securities at fair value through profit or loss 1,211,953
Other financial assets 77,082 279,840
Property, plant and equipment 1,108
Deferred tax assets 7,724
Other non-financial assets 29,231 781
Liabilities 97,776 1,673,303
Other financial liabilities 1,658,508
Other non-financial liabilities 97,776 14,795
Net assets acquired at fair value 17,856

The goodwill generated by the acquisition of Fintech SGR amounted to 44,460.

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.

14. INVESTMENT IN ASSOCIATES AND JOINT ARRANGEMENTS

14.1 Associates

a) Macro Warrants SA

The Bank holds an investment in the associate Macro Warrants SA. The existence of significant influence is evidenced by the representation the Bank has in the Board of Directors of the associate. In order to measure this investment, the Bank used accounting information of Macro Warrants SA as of September 30, 2022. Additionally, the Bank has considered, when applicable, the material transactions or events occurring between October 1, 2022 and December 31, 2022.

- 50 -

NOTES TO THE CONSOLIDATEDFINANCIAL STATEMENTS AS OF DECEMBER 31, 2022

(Translation of Financial Statements originally issued in Spanish – See Note 48)

(Figures stated in thousands of pesos in constant currency)

The following table presents the summarized financial information on the Bank’s investment in the associate:

Summarized statement of financial position 12/31/2022 12/31/2021
Total assets 127,243 173,171
Total liabilities 15,965 24,560
Shareholders’ equity 111,278 148,611
Proportional Bank’s interest 5 % 5 %
Investment carrying amount 5,564 7,431

As of December 31, 2022 and 2021, the investment carrying amount in the net income for the fiscal years amounted to (1,621) and 549, 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 September 30, 2022. Additionally, the Bank has considered, when applicable, the material transactions or events occurring between October 1, 2022 and December 31, 2022.

The following table presents the summarized financial information on the Bank’s interest in the associate:

Summarized statement of financial position 12/31/2022 12/31/2021
Total assets 4,321,080 3,630,568
Total liabilities 446,741 306,601
Shareholders’ equity 3,874,339 3,323,967
Effects of the irrevocable capital contributions made during 2022 pending capitalization (see note 1) (4,596,480 )
Adjusted Shareholders’ equity (722,141 ) 3,323,956
Proportional Bank’s interest (see note 1) 8.9927 % 10.0197 %
Equity interest (64,940 ) 333,052
Irrevocable capital contribution made in January and July 2022 (see note 1) 487,899
Investment carrying amount 422,959 333,052

As of December 31, 2022 and 2021, the investment carrying amount in the net income for the fiscal years amounted to (414,107) and (146,964), respectively.

14.2. 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.

- 51 -

NOTES TO THE CONSOLIDATEDFINANCIAL STATEMENTS AS OF DECEMBER 31, 2022

(Translation of Financial Statements originally issued in Spanish – See Note 48)

(Figures stated in thousands of pesos in constant currency)

The following table presents the summarized financial information on the Bank’s investment in the UTE:

Summarized statement of financial position 12/31/2022 12/31/2021
Total assets 1,551,310 1,381,302
Total liabilities 265,824 321,017
Shareholders’ equity 1,285,486 1,060,285
Proportional Bank’s interest 50 % 50 %
Investment carrying amount 642,743 530,143

As of December 31, 2022 and 2021, the investment carrying amount in the net income for the fiscal years amounted to 322,924 and 339,521, 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. In order to measure this investment, the Bank used accounting information of Finova SA as of September 30, 2022. Additionally, the Bank has considered, when applicable, the material transactions or events occurring between October 1, 2022 and December 31, 2022.

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”, is measured at equity method plus goodwill:

Summarized statement of financial position 12/31/2022 12/31/2021
Total assets 50,945 75,747
Total liabilities 8,287 7,967
Shareholders’ equity 42,658 67,780
Proportional Bank’s interest 50 % 50 %
Equity interest 21,329 33,890
Goodwill 49,004 49,004
Investment carrying amount 70,333 82,894

As of December 31, 2022 and 2021, the investment carrying amount in the net income for the fiscal years amounted to (12,562) and (22,562), respectively.

For further information on the Bank’s interest in associates and joint arrangements, see exhibit E “Detailed information on interest in other companies”.

15. OTHER NON-FINANCIAL ASSETS

The composition of the other non-financial assets as of December 31, 2022 and 2021 is as follows:

Composition 12/31/2022 12/31/2021
Investment property (see Exhibit F) 8,689,946 1,694,136
Advanced prepayments 2,347,616 1,617,108
Tax advances 1,230,143 855,688
Other 185,165 374,911
Total 12,452,870 4,541,843 
- 52 -

NOTES TO THE CONSOLIDATEDFINANCIAL STATEMENTS

AS OF DECEMBER 31, 2022

(Translation of Financial Statements originally issued in Spanish – See Note 48)

(Figures stated in thousands of pesos in constant currency)

16. 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<br>of the Bank;
--- ---
- members of the same group;
--- ---
- one entity is an associate (or an associate of<br>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 December 31, 2022 and 2021, amounts balances and profit or loss related to transactions generated with related parties are as follows:

As<br> of December 31, 2022
Main<br> subsidiaries (1)
Macro<br> Bank<br><br> Limited Macro<br><br> Securities<br><br> SAU 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 deposits<br> in banks 1,419 1,419
Other financial assets 3,017,035 232,533 19 3,249,587
Loans and other financing<br> (3)
Overdraft 56,268 420,910 477,178
Credit<br> cards 189,716 49,820 239,536
Lease 66,686 66,686
Personal<br> loans 1,162 1,162
Mortgage<br> loans 542,582 542,582
Other<br> loans 2,113,373 151,849 1,400,121 3,665,343
Guarantee<br> granted 1,540,021 1,540,021
Other non-financial<br> assets
Total<br> assets 1,419 2,113,373 3,017,035 1,174,110 3,477,577 9,783,514
Liabilities
Deposits 2,936,305 65,353 58,138 116 84,710 4,161,737 2,299,339 9,605,698
Liabilities<br> at fair value through profit or loss 164,605 164,605
Other financial<br> liabilities 51,690 12,028 63,718
Issued corporate<br> bonds 109,275 178,907 288,182
Subordinated<br> corporate bonds 144,549 144,549
Other non-financial<br> liabilities 20,216 20,216
Total liabilities 3,045,580 244,260 58,138 144,665 84,710 4,213,427 2,496,188 10,286,968
Income<br> / (loss)
Interest<br> income 4,323 293,908 1,983,298 2,281,529
Interest<br> expense (22,970 ) (104,453 ) (69,030 ) (196,453 )
Commissions<br> income 24,841 156 792 345 61 105,069 131,264
Commissions<br> expense (10,647 ) (51 ) (1,143 ) (11,841 )
Other operating<br> income 5 40 1,304,736 52 1,304,833
Allowance<br> for loan losses (374 ) (374 )
Administrative<br> expense (585,739 ) (585,739 )
Other<br> operating expense (14,511 ) (70,829 ) (85,340 )
Total Income / (loss) 5 14,279 156 40 1,294,881 (22,625 ) 189,465 1,361,678 2,837,879
(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<br>of December 31, 2022 for Macro Securities SAU, Fintech SGR, Key management personnel and other related parties amounted to 4,528,425,<br>2,535,472, 1,319,372 and 16,840,167, respectively. 
- 53 -

NOTES TO THE CONSOLIDATEDFINANCIAL STATEMENTS

AS OF DECEMBER 31, 2022

(Translation of Financial Statements originally issued in Spanish – See Note 48)

(Figures stated in thousands of pesos in constant currency)

As of December 31, 2021
Main subsidiaries (1)
Macro<br> Bank<br><br> Limited Macro<br><br> Securities<br><br> SAU 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<br> and deposits in banks 1,603 1,603
Other financial assets 1,477,165 290,117 281,735 2,049,017
Loans and other financing (3)
Documents 55,596 55,596
Overdraft 156,620 492,704 649,324
Credit cards 139,924 105,138 245,062
Lease 55,956 55,956
Personal<br> loans 2,776 2,776
Mortgage<br> loans 499,837 499,837
Other loans 2,697,732 148,709 3,095,126 5,941,567
Guarantee<br> granted 1,993,430 1,993,430
Other non-financial<br> assets 47 47
Total<br> assets 1,603 2,697,732 1,477,165 1,238,030 6,079,685 11,494,215
Liabilities
Deposits 8 3,097,952 318,915 133,622 60 102,927 7,197,104 3,339,357 14,189,945
Financial<br> liabilities at fair value through profit or loss 3,169,891 3,169,891
Other financial<br> liabilities 95,016 485,510 580,526
Subordinated<br> corporate bonds 81,844 81,844
Other non-financial<br> liabilities 29,963 29,963
Total<br> liabilities 8 3,097,952 318,915 133,622 81,904 102,927 7,292,120 7,024,721 18,052,169
Income<br> / (loss)
Interest<br> income 6,960 317,425 2,798,993 3,123,378
Interest<br> expense (8,205 ) (33,765 ) (74,764 ) (109,111 ) (225,845 )
Commissions<br> income 42,841 232 56 434 37 196,373 239,973
Commissions<br> expense (699 ) (45 ) (343 ) (1,087 )
Profit from<br> measurement of financial instruments at fair value through profit or loss 45,691 45,691
Other operating<br> income 8 6,693 13,049 62 19,812
Administrative<br> expense (468,070 ) (468,070 )
Other operating<br> expense (144,963 ) (144,963 )
Total<br> Income / (loss) 8 48,289 232 58,097 (33,331 ) 242,653 2,272,941 2,588,889
(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>SAU, Fintech SGR, Key management personnel and other related parties amounted to 2,720,419, 1,477,165, 1,395,627 and 11,912,135, respectively.
--- --- 
- 54 -

NOTES TO THE CONSOLIDATEDFINANCIAL STATEMENTS

AS OF DECEMBER 31, 2022

(Translation of Financial Statements originally issued in Spanish – See Note 48)

(Figures stated in thousands of pesos in constant currency)

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 December 31, 2022 and 2021, totaled 1,057,003 and 1,131,565, respectively.

In addition, fees received by the Directors as of December 31, 2022 and 2021 amounted to 1,802,678 and 2,227,536, respectively.

Additionally, the composition of the Board of Directors and key management personnel of the Bank and its subsidiaries is as follows:

Composition 12/31/2022 12/31/2021
Board of Directors 22 21
Senior managers of the key management personnel 12 12
Total 34 33 
- 55 -

NOTES TO THE CONSOLIDATEDFINANCIAL STATEMENTS

AS OF DECEMBER 31, 2022

(Translation of Financial Statements originally issued in Spanish – See Note 48)

(Figures stated in thousands of pesos in constant currency)

17. DEPOSITS

The composition of deposits as of December 31, 2022 and 2021 is as follows:

Composition 12/31/2022 12/31/2021
Non-financial Public Sector 109,952,253 109,868,280
Financial sector 1,653,447 1,872,336
Non-financial Private Sector and Foreign Residents 1,183,789,369 1,035,300,412
Checking accounts 159,123,762 196,484,984
Saving accounts 419,740,050 360,846,573
Time deposits 569,021,981 447,350,444
Investment accounts 20,484,440 13,237,020
Other 15,419,136 17,381,391
Total 1,295,395,069 1,147,041,028
18. OTHER FINANCIAL LIABILITIES
--- ---

The composition of the other financial liabilities as of December 31, 2022 and 2021 is as follows:

Composition 12/31/2022 12/31/2021
Credit and debit card settlement - due to merchants 73,511,478 64,371,122
Amounts payable for spot purchases of foreign currency pending settlement 16,050,423 30,215,931
Amounts payable for other spot purchases pending settlement 14,735,430 13,776,398
Amounts payable for spot purchases of government securities pending settlement 9,780,493 3,161,103
Payment orders pending to foreign exchange settlement 5,692,820 5,793,940
Collections and other transactions on account and behalf of others 2,805,941 4,736,909
Finance leases liabilities (see note 19) 1,965,258 2,766,394
Other 10,549,473 6,456,592
Total 135,091,316 131,278,389
19. LEASES
--- ---

19.1   The Bank as a lessee

The Bank has lease contracts mainly for real properties recognized in the item “Property, plant and equipment”. Generally, the Bank is restricted from assigning or subleasing the leased assets.

As of December 31, 2022 and 2021, the carrying amount of assets recognized for the right-of-use assets identified in the lease contracts, depreciation expense for the fiscal year and the additions to right-of-use assets are disclosed in Exhibit F to these consolidated Financial Statements.

Set out below are the carrying amounts of lease liabilities and the movements during the fiscal year:

Movements 2022 2021
At the beginning of the fiscal year 2,766,394 3,456,332
Additions 636,104 962,042
Accretion of interest 385,368 426,069
Difference in foreign currency 710,151 435,238
Payments (1,023,305 ) (1,505,130 )
Monetary effects (1,509,454 ) (1,008,157 )
At the end of the fiscal year (see note 18) 1,965,258 2,766,394 
- 56 -

NOTES TO THE CONSOLIDATEDFINANCIAL STATEMENTS

AS OF DECEMBER 31, 2022

(Translation of Financial Statements originally issued in Spanish – See Note 48)

(Figures stated in thousands of pesos in constant currency)

The short term leases were recognized as expense for an amount of 14,024 and 15,554 for the years ended December 31, 2022 and 2021, respectively.

The table below shows the maturity of the lease liabilities as of December 31, 2022 and 2021:

Lease liabilities Up to 1<br> month Over 1<br> month and<br> up to 3<br> months Over 3<br> months<br> and up to<br> 6 months Over 6<br> months and<br> up to 12<br> months Total up to<br> 12 months Over 12<br> months<br> and up to<br> 24 months Over 24<br> months Total <br> over 12<br> months
Balances as of 12/31/2022 102,002 167,767 230,466 375,032 875,267 459,239 630,752 1,089,991
Balances as of 12/31/2021 117,881 205,207 281,639 477,223 1,081,950 719,887 964,557 1,684,444

19.2 The Bank as a lessor

The Bank, as lessor, entered into financial lease contracts, under the usual characteristics of this kind of transactions, without there being any issues that may differentiate them in any aspect from those performed in the Argentine financial market in general. The lease contracts in force do not represent significant balances with respect to the total financing granted by the Bank.

The following table shows the reconciliation between the total gross investment of financial leases and the current value of the minimum payment receivables for such leases:

12/31/2022 12/31/2021
Current value <br> of minimum<br> payments Total gross<br> Investment Current value<br> of minimum<br> payments Total gross <br><br>investment
Up to 1 year 1,045,035 694,131 449,698 217,952
From 1 to 5 years 1,151,911 692,670 1,073,166 713,319
Total 2,196,946 1,386,801 1,522,864 931,091

Income for non-accrued interests amounted to 810,145 and 591,773, for the years ended December 31, 2022 and 2021, respectively.

20. 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 December 31, 2022 and 2021.

- 57 -

NOTES TO THE CONSOLIDATEDFINANCIAL STATEMENTS AS OF DECEMBER 31, 2022

(Translation of Financial Statements originally issued in Spanish – See Note 48)

(Figures stated in thousands of pesos in constant currency)

The expected terms to settle these obligations are as follows:

12/31/2022
Composition Within 12<br> months Over 12<br> months 12/31/2022 12/31/2021
For administrative, disciplinary and criminal penalties 500 500 972
Letters of credits, guarantees and other commitments (1) 696,767 696,767 664,446
Commercial claims in progress (2) 170,878 323,732 494,610 618,540
Labor lawsuits 220,529 45,837 266,366 419,573
Pension funds - reimbursement 303,631 214,859 518,490 206,987
Other 12,370 723,975 736,345 1,287,157
Total 1,404,175 1,308,903 2,713,078 3,197,675
(1) These amounts correspond to the ECL calculated for contingent transactions, which are mentioned in note<br>4.
--- ---
(2) See also note 43.2.
--- ---

In the opinion of the Bank’s Management and its legal counsel, there are no other significant effects other than those disclosed in these consolidated 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.

21. OTHER NON-FINANCIAL LIABILITIES

The composition of other non-financial liabilities as of December 31, 2022 and 2021 is as follows:

Composition 12/31/2022 12/31/2021
Withholdings 15,864,725 13,681,499
Salaries, bonuses and payroll taxes payables 10,968,737 12,823,688
Taxes payables 7,711,416 6,263,018
Miscellaneous payables 2,954,543 3,700,097
Retirement pension payment orders pending settlement 1,124,896 824,014
Fees payables 686,058 606,697
Dividends payables (see note 34) 51,776,837
Other 3,498,916 4,083,075
Total 42,809,291 93,758,925
22. EMPLOYEE BENEFITS PAYABLE
--- ---

The table below presents the amounts of employee benefits payable as of December 31, 2022 and 2021:

Short-term employee benefits 12/31/2022 12/31/2021
Salaries, bonuses and payroll taxes payables 6,274,225 6,276,869
Vacation accrual 4,694,512 6,546,819
Total short-term employee benefits 10,968,737 12,823,688

The Bank has not long-term employee benefits or post-employment benefits as of December 31, 2022 and 2021.

- 58 -

NOTES TO THE CONSOLIDATEDFINANCIAL STATEMENTS AS OF DECEMBER 31, 2022

(Translation of Financial Statements originally issued in Spanish – See Note 48)

(Figures stated in thousands of pesos in constant currency)

23. 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 December 31, 2022 and 2021:

12/31/2022 Without<br> due<br> date Up<br> to 1<br> month Over<br> 1<br> month and <br> up to 3<br> months Over<br> 3<br> months and <br> up to 6<br> months Over<br> 6<br> months and<br> up to 12 <br> months Total<br> up to<br> 12 months Over<br> 12<br> months and<br> up to 24<br> months Over<br> 24<br> months Total<br> over 12<br> months
Assets
Cash and deposits in banks 250,089,093
Debt securities at fair value<br> through profit or loss 3,606,944 23,020,407 81,818,949 82,227,649 190,673,949 13,052,363 7,327,800 20,380,163
Derivative financial instruments 8,486 15,431 18,982 42,899
Repo transactions 61,929,317 61,929,317
Other financial assets 11,450,388 34,052,024 13,881 670,485 34,736,390 11,757,745 11,757,745
Loans and other financing (1) 1,456,402 263,317,290 49,526,049 56,306,665 60,009,135 429,159,139 58,903,976 109,081,513 167,985,489
Other debt securities 524,424,144 103,201,972 4,775,989 53,229,670 685,631,775 13,748,089 38,126,167 51,874,256
Financial assets delivered as<br> guarantee 30,620,278
Equity instruments<br> at fair value through profit or loss 839,458
Total<br> assets 294,455,619 887,338,205 175,777,740 143,591,070 195,466,454 1,402,173,469 85,704,428 166,293,225 251,997,653
Liabilities
Deposits 640,314,252 533,536,796 104,045,528 16,006,720 1,471,095 655,060,139 6,295 14,383 20,678
Liabilities at fair value through<br> profit or loss 526,027 526,027
Derivative financial instruments 1,715 656 2,371
Other financial liabilities 130,625,153 361,232 307,095 632,952 131,926,432 882,492 2,282,392 3,164,884
Financing received from the BCRA<br> and other financial institutions 291,701 511,370 1,603,567 42,704 2,449,342
Issued corporate bonds 6,488 6,488 2,709,068 2,709,068
Subordinated<br> corporate bonds 1,420,220 1,420,220 70,709,617 70,709,617
Total<br> liabilities 640,314,252 664,981,392 104,925,274 19,337,602 2,146,751 791,391,019 3,597,855 73,006,392 76,604,247
(1) The amounts included in “without due date” are related to the non-performing portfolio.
--- --- 
- 59 -

NOTES TO THE CONSOLIDATEDFINANCIAL STATEMENTS AS OF DECEMBER 31, 2022

(Translation of Financial Statements originally issued in Spanish – See Note 48)

(Figures stated in thousands of pesos in constant currency)

12/31/2021 Without due<br> date Up to 1<br> month Over 1<br> month and <br> up to 3<br> months Over 3<br> months and<br> up to 6 <br> months Over 6<br> months and <br> up to 12 <br> months Total up to<br> 12 months Over 12<br> months and<br> up to 24<br> months Over 24<br> months Total over 12<br> months
Assets
Cash and deposits in banks 335,692,114
Debt securities at fair value through profit or loss 1,525,952 1,474,529 20,176,091 19,065,153 42,241,725 11,294,313 9,589,786 20,884,099
Derivative financial instruments 2,524 2,524
Repo transactions 61,176,357 61,176,357
Other financial assets 7,874,914 49,496,919 111,957 1,528,837 51,137,713 9,484,594 9,484,594
Loans and other financing (1) 319,135 253,753,858 59,795,231 64,027,592 73,753,392 451,330,073 77,414,659 157,264,559 234,679,218
Other debt securities 274,716,307 866,332 102,873,519 87,212,086 465,668,244 83,487,292 7,913,654 91,400,946
Financial assets delivered as guarantee 34,993,147
Equity instruments at fair value through profit or loss 4,245,510
Total assets 383,124,820 640,669,393 62,248,049 188,608,563 180,030,631 1,071,556,636 172,196,264 184,252,593 356,448,857
Liabilities
Deposits 638,343,581 399,889,458 96,274,539 11,568,297 903,931 508,636,225 60,388 834 61,222
Liabilities at fair value through profit or loss 3,170,711 3,170,711
Derivative financial instruments 4,933 4,933
Other financial liabilities 127,634,084 342,630 328,624 772,335 129,077,673 1,231,714 969,002 2,200,716
Financing received from the BCRA and other financial institutions 458,183 349,829 22,788 11,922 842,722 9,938 9,938
Issued corporate bonds 5,825,893 5,825,893
Subordinated corporate bonds 1,782,882 1,782,882 79,979,937 79,979,937
Total liabilities 638,343,581 531,152,436 96,966,998 19,533,417 1,688,188 649,341,039 1,302,040 80,949,773 82,251,813
(1) The amounts included in “without due date” are related to the non-performing portfolio.
--- ---
24. DISCLOSURES BY OPERATING SEGMENT

For management purposes the Bank’s Management has determined that it has only one operating segment related to the banking business. In this sense, the Bank supervises the operating segment income (loss) for the fiscal year in order to make decisions about resources to be allocated to the segment and assess its performance, which is measured on a consistent basis with the profit or loss in the Financial Statements.

25. 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. 
- 60 -

NOTES TO THE CONSOLIDATEDFINANCIAL STATEMENTS AS OF DECEMBER 31, 2022

(Translation of Financial Statements originally issued in Spanish – See Note 48)

(Figures stated in thousands of pesos in constant currency)

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 calculated<br>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 sixth<br>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 in which<br>it is determined.

As of December 31, 2022 and 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

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 deferred income tax:
Composition 12/31/2022 12/31/2021
--- --- --- --- ---
Deferred tax assets
Loans and other financing 3,624,426 5,120,431
Provisions and employee benefits 1,547,519 2,131,922
Allowances for contingencies 895,959 894,586
Leases 333,342 342,289
Investments in other companies 62,489
Other 731,636 774,998
Total deferred tax assets 7,195,371 9,264,226
Deferred tax liabilities
Property, plant and equipment and other non-financial assets 11,098,037 10,996,258
Intangible assets 6,062,959 5,712,776
Tax effects on forward sales 3,093,064 1,816,643
Investments in other companies 1,306,131
Other 145,942 427,047
Total deferred tax liabilities 20,400,002 20,258,855
Net deferred tax liabilities 13,204,631 10,994,629

In the consolidated Financial Statements, tax assets (current and deferred) of an entity of the Group shall not be offset with the tax liabilities (current and deferred) of another entity of the Group because they correspond to income tax applicable to different taxpayers and also they are not legally entitled before the tax authority to pay or receive only one amount to settle the net position.

- 61 -

NOTES TO THE CONSOLIDATEDFINANCIAL STATEMENTS AS OF DECEMBER 31, 2022

(Translation of Financial Statements originally issued in Spanish – See Note 48)

(Figures stated in thousands of pesos in constant currency)

Changes in net deferred tax assets and liabilities as of December 31, 2022 and 2021 are summarized as follows:

Composition 12/31/2022 12/31/2021
Net deferred tax liabilities at beginning of the fiscal year 10,994,629 18,311,974
Loss / (Profit) for deferred taxes recognized in the statement of income 2,210,002 (7,317,345 )
Net deferred tax liabilities at fiscal year end 13,204,631 10,994,629

The main items of income tax expense in the consolidated Financial Statements are as follows:

Composition 12/31/2022 12/31/2021
Current income tax expense 17,244,136 10,555,911
Loss / (Profit) for deferred taxes 2,210,002 (7,317,345 )
Income tax loss recorded in the statement of income 19,454,138 3,238,566
Income tax (profit) / loss recorded in other comprehensive income (2,445,927 ) 2,350,647
Total 17,008,211 5,589,213

The table below shows the reconciliation between income tax and the amounts obtained by applying the current tax rate in Argentina to the income carrying amount:

Composition 12/31/2022 12/31/2021
Income carrying amount before income tax 62,499,734 56,072,788
Applicable income tax rate 35 % 35 %
Income tax on income carrying amount 21,874,907 19,625,476
Net permanent differences and other tax effects including the fiscal inflation adjustment (2,420,769 ) (16,386,910 )
Total income tax 19,454,138 3,238,566

As of December 31, 2022 and 2021, the effective income tax rate is 31.1% and 5.8%, respectively. During fiscal year 2021, the effective income tax rate was affected by the inflation adjustment determined for accounting and income tax purposes, both current and deferred.

Fiscal years 2019 and 2020

As decided by the Board of Directors in the meeting held on May 11, 2020, considering certain case law on the matter assessed by its legal counsel and tax advisors, on May 26 of that year, the Bank filed with the Administración Federal de Ingresos Públicos (AFIP, for its acronym in Spanish) its annual income tax return considering the total effect of the inflation adjustment on income tax (see section a) iv) of this note). As a result, the current income tax determined by Banco Macro SA for fiscal year 2019 amounted to 7,002,124 (not restated). The same criterion was applied to determine the annual income tax report for 2020, which generated accrued income tax for Banco Macro SA for such fiscal year that amounted to 9,933,210 (not restated).

In addition, on July 23, 2021, the Bank filed a reimbursement action with the AFIP requesting that 254,305 (not restated) paid as income tax for the 2020 tax period be reimbursed.

As to the tax periods mentioned in previous paragraphs, on November 1, 2021, the AFIP notified the beginning of an income tax audit, which is in progress.

- 62 -

NOTESTO THE CONSOLIDATED FINANCIAL STATEMENTS

AS OFDECEMBER 31, 2022

(Translation of Financial Statements originally issued in Spanish – See Note 48)

(Figures stated in thousands of pesos in constant currency)

Along with the filings mentioned in the first paragraph of this section, on December 28, 2021, the Bank filed petitions for declaratory judgment with the Federal Administrative Contentious Court for the periods under analysis. The file 22274/2021, for the fiscal year 2019, is in process in Court No. 12 and the file 22278/2021, for the fiscal year 2020, is in process in Court No. 1.

Fiscal year 2021

On October 17, 2022, Banco Macro SA filed a reimbursement action with the AFIP requesting that 382,189 paid as income tax for the 2021 tax period be reimbursed.

On January 3, 2023, the AFIP notified the beginning of an income tax audit related to the abovementioned fiscal year, which is in progress.

Reimbursement actions – Fiscal years 2013 to 2017 and 2018

On October 24, 2019, Banco Macro SA filed with the AFIP-DGI (Argentine tax authorities) two reimbursement actions under the terms established by the first paragraph of section 81, Law No. 11683 requesting the reimbursement of 4,782,766 and 5,015,451 (not restated amounts) paid to tax authorities as income tax during tax periods 2013 through 2017 and 2018, respectively, arising from the impossibility to apply the adjustment for inflation and other adjustment mechanisms set forth by Income Tax Law (prior to the amendments introduced by Laws No. 27430 and 27468 for periods 2013 through 2017, and as revised in 2019 and amended for the 2018 tax period), plus the related compensatory interest (SIGEA [case and file management system] files No. 19144-14224/2019 and 19144-14222/2019). Since tax authorities have not yet issued a resolution with respect to the abovementioned claims, on August 7, 2020, the Bank filed both reimbursement requests under the terms of section 81, Law No. 11683 with the Federal Contentious and Administrative Trial Courts, which are pending in Courts No. 8 and 2 of such jurisdiction, respectively (cases No. 11285/2020 and 11296/2020). Currently, the file for the fiscal year 2018 is in the evidence 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.

26. COMMISSIONS INCOME
Composition 12/31/2022 12/31/2021
Performance obligations satisfied at a point in time
Commissions related to<br> obligations 42,688,825 39,677,960
Commissions related to credit cards 24,778,637 23,596,621
Commissions related to insurance 4,226,128 4,450,781
Commissions related to trading and<br> foreign exchange transactions 1,527,054 1,701,807
Commissions related to securities value 1,263,515 1,477,199
Commissions related to loans and other<br> financing 432,533 322,779
Commissions related to financial guarantees<br> granted 10,385 11,527
Performance obligations satisfied over certain time period
Commissions related to credit cards 407,727 716,392
Commissions related to trading and<br> foreign exchange transactions 59,020 75,697
Commissions related to loans and other<br> financing 7,186 9,377
Commissions related to obligations 1,571 2,127
Commissions related<br> to financial guarantees granted 184
Total 75,402,581 72,042,451 
- 63 -

NOTESTO THE CONSOLIDATED FINANCIAL STATEMENTS

AS OFDECEMBER 31, 2022

(Translation of Financial Statements originally issued in Spanish – See Note 48)

(Figures stated in thousands of pesos in constant currency)

27. DIFFERENCES IN QUOTED PRICES OF GOLD AND FOREIGN CURRENCY
Composition 12/31/2022 12/31/2021
Translation of foreign currency assets and liabilities<br> into pesos 61,080,728 7,984,321
Income from foreign currency exchange 1,192,854 1,069,055
Total 62,273,582 9,053,376
28. OTHER OPERATING INCOME
Composition 12/31/2022 12/31/2021
Services 9,657,167 8,395,016
Adjustments and interest from other receivables 2,379,227 2,179,393
Other receivables for financial intermediation 947,942 1,833,714
Adjustments from other receivables with CER clauses 1,679,397 681,084
Sale of investment in properties and other non-financial assets 76,116
Other 6,512,803 2,094,389
Total 21,176,536 15,259,712
29. EMPLOYEE BENEFITS
Composition 12/31/2022 12/31/2021
Remunerations 53,579,236 54,584,335
Payroll taxes 13,220,901 12,594,534
Compensations and bonuses to employees 8,115,316 7,611,677
Employee services 2,722,838 2,116,182
Total 77,638,291 76,906,728
30. ADMINISTRATIVE EXPENSES
Composition 12/31/2022 12/31/2021
Taxes 6,415,867 5,704,624
Maintenance, conservation and repair expenses 6,236,440 6,461,974
Armored truck, documentation and events 5,273,648 5,650,513
Other fees 3,778,624 3,317,564
Security services 3,761,984 3,972,295
Electricity and communications 3,464,711 3,959,287
Software 2,492,439 3,103,996
Advertising and publicity 2,374,900 1,699,823
Fees to directors and syndics 1,975,113 1,522,421
Representation, travel and transportation expenses 683,335 470,077
Insurance 412,674 529,174 
- 64 -

NOTESTO THE CONSOLIDATED FINANCIAL STATEMENTS

AS OFDECEMBER 31, 2022

(Translation of Financial Statements originally issued in Spanish – See Note 48)

(Figures stated in thousands of pesos in constant currency)

Composition (Contd.) 12/31/2022 12/31/2021
Stationery and office supplies 271,787 245,587
Hired administrative services 266,705 242,991
Leases 173,521 227,280
Other 1,573,923 2,030,073
Total 39,155,671 39,137,679
31. OTHER OPERATING EXPENSES
Composition 12/31/2022 12/31/2021
Turnover tax 41,332,037 35,193,119
From credit cards 17,189,552 14,978,007
Charges for other provisions 2,382,793 3,161,543
Deposit guarantee fund contributions 1,913,030 2,029,167
Other adjustments and interests for miscellaneous obligations 1,205,618 504,379
Taxes 842,900 921,221
Loss from sale or impairment of investment in properties and<br> other non-financial assets 542,323 140,151
Insurance claims 436,033 174,484
Donations 420,267 57,492
From administrative, disciplinary and criminal penalties 81,094
Other 8,728,438 9,451,467
Total 74,992,991 66,692,124
32. 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 fiscal year. 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<br> activities: the normal revenue-producing activities of the Bank as well as other activities<br> that cannot qualify as investing or financing activities.
- Investing<br> 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<br> 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. 
- 65 -

NOTESTO THE CONSOLIDATED FINANCIAL STATEMENTS

AS OFDECEMBER 31, 2022

(Translation of Financial Statements originally issued in Spanish – See Note 48)

(Figures stated in thousands of pesos in constant currency)

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 12/31/2022 12/31/2021 12/31/2020
Cash and deposits in banks 250,089,093 335,692,114 382,135,611
Debt Securities at fair value through profit or loss 9,467
Other debt securities 498,952,883 267,023,884 391,688,599
Loans and other financing 885,642 1,000,749 1,237,032
Total 749,927,618 603,726,214 775,061,242
33. CAPITAL STOCK
--- ---

The Bank’s subscribed and paid-in capital from December 31, 2019 to December 31, 2022, amounted to 639,413. The capital stock composition is detailed in Exhibit K to the separated Financial Statements.

34. 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 fiscal year.

To determine the weighted average number of common shares outstanding during the fiscal year, 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 fiscal year multiplied by the number of days that the shares were outstanding in the fiscal year. Note 33 provides a breakdown of the changes in the Bank’s capital stock.

The calculation of basic earnings per share is disclosed in the table of Earnings per share included in the consolidated statement of income. See additionally note 44.

Dividends paid and proposed

During 2020 and 2021, the BCRA issued Communiqués that suspended the payment of earnings distributions resolved by the Shareholders’ Meetings. As a consequence of the abovementioned suspensions, as of December 31, 2021 dividends pending distribution amounted to 26,580,415 (not restated), which had been approved by the Shareholders’ Meetings held on April 30 and October 21, 2020 and April 30, 2021, and were recorded under other non-financial liabilities (see note 21).

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.

On May 12, 2022, the BCRA approved the dividends distribution requested by the Bank in accordance with the Communiqué mentioned in the previous paragraph for an amount of 19,751,444 (not restated), which were paid during the fiscal year according to the schedule. Additionally, the balance of the dividends approved that are still to be paid because they exceed the abovementioned limit, amounted to 6,828,971 (not restated).

Moreover, 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 (not restated), representing 22.18 pesos per share, subject to prior authorization from the BCRA which, added to the dividends still to be paid because they exceed the abovementioned limited, amounted to 21,016,844 (not restated) and were recorded in a “Reserve for dividends pending authorization from the BCRA”. Through Communiqué “A” 7659 issued on December 15, 2022, the BCRA established the suspension on earning distributions for financial entities from January 1, 2023 up to December 31, 2023.

For further information see also note 44 together with the earnings distribution proposal.

- 66 -

NOTESTO THE CONSOLIDATED FINANCIAL STATEMENTS

AS OFDECEMBER 31, 2022

(Translation of Financial Statements originally issued in Spanish – See Note 48)

(Figures stated in thousands of pesos in constant currency)

35. 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 a 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. In addition, through Communiqué “A” 7661 issued on December 22, 2022, the BCRA resolved that from January 1, 2023, the guarantee will be up to 6,000.

On the other hand, the BCRA provided from the exclusion of the guarantee system, among others, of any deposits made by other financial entities, deposits made by persons related to the Bank and securities deposits.

36. RESTRICTED ASSETS

As of December 31, 2022 and 2021, the following Bank’s assets are restricted:

Composition 12/31/2022 12/31/2021
Cash and Deposits in Banks
· Fondo<br> de Riesgo Fintech SGR – Deposits in other entities (1). 58 2
Subtotal Cash and Deposits in Banks 58 2
Debt securities at fair value through profit or loss and other debt<br> securities
· Fondo<br> de Riesgo Fintech SGR – Debt securities at fair value through profit or loss and other debt securities (1). 4,741,056 2,065,517
· Letters<br> of National Estate in pesos adjusted by CER – Maturity: 02/17/2023. 148,920
· Discount<br> bonds in pesos regulated by Argentine legislation, maturing in 2033 for the minimum statutory guarantee account required for Agents<br> to act in the new categories contemplated under Resolution No. 622/2013, as amended, of the Argentine Securities Commission (CNV). 92,856 94,847
· Federal<br> Government Treasury Bonds in pesos adjusted by CER 1.40%, maturity 03/27/2023, securing the sectoral Credit Program of the Province<br> of San Juan, production investment financing fund. 83,319 86,975
· Federal<br> Government Treasury Bonds in pesos adjusted by CER 1.40%, maturity 03/27/2023, securing the regional economies Competitiveness Program<br> – IDB loan No. 3174/OC-AR. 33,682 35,160
· Federal<br> Government Treasury Bonds in pesos adjusted by CER 1.40%, maturity 03/27/2023, for the contribution to the Guarantee Fund II in BYMA<br> according to section 45, Law 26831, and supplementary regulations established by CNV standards (NT 2013, as amended). 14,891 15,545
Subtotal debt securities at fair value through profit<br> or loss and other debt securities 5,114,724 2,298,044 
- 67 -

NOTESTO THE CONSOLIDATED FINANCIAL STATEMENTS

AS OFDECEMBER 31, 2022

(Translation of Financial Statements originally issued in Spanish – See Note 48)

(Figures stated in thousands of pesos in constant currency)

Composition<br> (contd.) 12/31/2022 12/31/2021
Other financial assets
· Interests<br> derived from contributions made as protector partner (2). 2,413,559 1,485,299
· Mutual<br> fund shares for minimum statutory guarantee account required for Agents to act in the new categories contemplated under Resolution<br> No. 622/13, as amended, of the CNV. 145,451 293,643
· Fondo<br> de Riesgo Fintech SGR – Mutual fund shares (1). 120,502 396,548
· Sundry<br> debtors – Other. 8,787 9,792
· Sundry<br> debtors – attachment within the scope of the claim filed by the DGR against the CABA for turnover tax differences. 827 1,610
Subtotal Other financial assets 2,689,126 2,186,892
Loans and other financing – non-financial private sector and<br> foreign residents
--- --- --- ---
· Fondo<br> de Riesgo Fintech SGR – Loans and other financing (1). 5,100 4,036
Subtotal loans and other financing 5,100 4,036
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. 24,824,547 30,242,005
· Guarantee<br> deposits related to credit and debit card transactions. 4,043,563 2,567,119
· Other<br> guarantee deposits. 1,752,168 2,184,023
Subtotal Financial assets delivered as guarantee 30,620,278 34,993,147
Other non-financial assets
· Real property<br> related to a call option sold. 2,456,151 421,571
· Fondo<br> de Riesgo Fintech SGR – Other non-financial assets (1). 12,958 654
Subtotal other non-financial assets 2,469,109 422,225
Total 40,898,395 39,904,346
(1) According to Law 24467, as amended,<br> and Fintech SGR By-Law, this entity has a risk fund (“Fondo de Riesgo”) which<br> its main objective is to cover the guarantees granted to the protector partners and third<br> parties. The assets of the risk fund could only be applied to partners’ withdrawals,<br> to cover guarantees and other direct expenses.
--- ---
(2) As of December 31, 2022 and 2021 it<br> is related to the risk fund Fintech SGR and Garantizar SGR. In order to keep tax benefits<br> related to these contributions, they must be maintained between two and three years from<br> the date they were made.
--- --- 
- 68 -

NOTESTO THE CONSOLIDATED FINANCIAL STATEMENTS

AS OFDECEMBER 31, 2022

(Translation of Financial Statements originally issued in Spanish – See Note 48)

(Figures stated in thousands of pesos in constant currency)

37. 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:

37.1. 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 (Confibono 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 (Secubono and Confibono) and certificates of participation (Arfintech).

As of December 31, 2022 and 2021, debt securities and certificates of participation in financial trusts for investment, amounted to 950,899 and 1,034,155, respectively.

According to the latest accounting information available as of the date of issuance of these consolidated Financial Statements, the corpus assets of the trusts exceed the carrying amount in the related proportions.

37.2. 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 December 31, 2022 and 2021, considering the latest available accounting information as of the date of issuance of these consolidated Financial Statements, the assets managed through Macro Fiducia SAU (subsidiary) of this type of trusts amounted to 11,680 and 18,708, respectively.

37.3. 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 December 31, 2022 and 2021, considering the latest available accounting information as of the date of issuance of these consolidated Financial Statements, the assets managed by the Bank amounted to 2,721,267 and 3,942,468, respectively.

37.4. Trusts in which the<br> 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.

- 69 -

NOTESTO THE CONSOLIDATED FINANCIAL STATEMENTS

AS OFDECEMBER 31, 2022

(Translation of Financial Statements originally issued in Spanish – See Note 48)

(Figures stated in thousands of pesos in constant currency)

Trusts usually manage funds derived from the activities performed by trustors, for the following main purposes:

- Guaranteeing, in favor of the beneficiary<br> the existence of the resources required to finance and/or pay certain obligations, such as<br> the payment of amortization installments regarding work or service certificates, and the<br> payment of invoices and fees stipulated in the related agreements.
- Promoting the production development of<br> the private economic sector at a provincial level.
--- ---
- Being a party to public work concession<br> agreements granting road exploitation, management, keeping and maintenance.
--- ---

As of December 31, 2022 and 2021, considering the latest available accounting information as of the date of issuance of these consolidated Financial Statements, the assets managed by the Bank amounted to 17,810,671 and 23,690,901, respectively.

38. COMPLIANCE WITH CNV REGULATIONS
38.1 Compliance with CNV<br> standards to act in the different agent categories defined by the CNV:
38.1.1 Operations of Banco<br> Macro SA

Considering Banco Macro SA’s current operations, and according to the different categories of agents established by CNV rules (as per General Resolution No. 622/2013, as amended), the Bank is registered with this agency as agent for the custody of collective investment products of mutual funds (AC PIC FCI, for their acronyms in Spanish) – Comprehensive Depositary company, clearing and settlement agent and trading agent (ALyC and AN – comprehensive, for their acronyms in Spanish) and Guarantee Entity (in the process of being registered), and is registered in the “List of Authorized companies to guarantee capital market instruments”.

Additionally, the Bank’s shareholders’ equity as of December 31, 2022 stated in UVAs amounted to 2,765,002,747 and exceeds the minimum amount required by such regulation for the different categories of agents in which the Bank is registered, amounting to 470,350 UVAs as of that date, and the minimum required statutory guarantee account of 235,175 UVAs, which the Bank paid-in with government securities as described in note 36 and the cash deposits in BCRA accounts 000285 and 80285 belonging to the Bank.

38.1.2 Operations of Macro<br> Securities SAU

Considering the current operations of this subsidiary, and according to the provisions established by CNV effective as of the approval of General Resolution No. 622/2013, as amended, issued by such agency, such Company is registered under the following categories: clearing and settlement agent, trading agent, comprehensive trading agent and mutual investment funds placement and distribution agent and comprehensive mutual investment funds placement and distribution agent (ALyC, AN – comprehensive, ACyD FCI and ACyDI FCI).

Additionally, the shareholders’ equity of such Company as of December 31, 2022 stated in UVAs amounted to 54,318,228 and exceeds the minimum amount required by such regulation, amounting to 470,350 UVAs and the minimum statutory guarantee account required a minimum of 50% of the minimum amount of Shareholders’ equity, which the Company paid-in with mutual fund shares. Moreover, as result of the Company acting as “ACyD FCI and ACyDI FCI” an amount of 163,500 UVAs will be added to minimum Shareholder’s equity.

38.1.3 Operations of Macro<br> Fondos Sociedad Gerente de Fondos Comunes de Inversión SA

Considering the current operations of this subsidiary, and according to the provisions established by CNV effective as of the approval of General Resolution No. 622/2013, as amended, issued by such agency, such Company is registered as agent for the Administration of Collective Investment Products of Mutual Funds.

- 70 -

NOTESTO THE CONSOLIDATED FINANCIAL STATEMENTS

AS OFDECEMBER 31, 2022

(Translation of Financial Statements originally issued in Spanish – See Note 48)

(Figures stated in thousands of pesos in constant currency)

Additionally, the shareholders’ equity of this Company as of December 31, 2022 stated in UVAs amounted to 14,855,693 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.

38.1.4 Operations of Macro<br> Fiducia SAU

Considering the current operations of this subsidiary and according to the provisions established by CNV effective as of the approval of General Resolution 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 December 31, 2022 stated in UVAs amounted to 1,045,210 an exceeds the minimum amount required by General Resolution 795 established in 950,000 UVAs. 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.

38.2 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 five 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).

In addition, the documentary support on a digital format is protected on the Bank’s servers.

38.3 As depositary of mutual<br> funds

As of December 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<br> of shares Equity
Argenfunds Abierto Pymes 3,368,464,766 13,209,510
Argenfunds Ahorro Pesos 68,665,665 1,483,665
Argenfunds Infraestructura 124,707,305 200,913
Argenfunds Liquidez 10,487,802,190 35,478,857
Argenfunds Renta Argentina 95,229,288 1,716,424
Argenfunds Renta Balanceada 714,552,012 7,640,633
Argenfunds Renta Capital 17,579,499 3,156,160
Argenfunds Renta Crecimiento 7,416,062 1,243,800
Argenfunds Renta Dinámica 55,111,867,139 3,110,104
Argenfunds Renta Fija 268,962,626 7,901,050
Argenfunds Renta Flexible 136,970,768 939,800
Argenfunds Renta Global 223,046,965 1,858,292
Argenfunds Renta Mixta 2,456,709,951 3,110,839 
- 71 -

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2022

(Translation of Financial Statements originally issued in Spanish – See Note 48)

(Figures stated in thousands of pesos in constant currency)

Funds (contd.) Number of shares Equity
Argenfunds Renta Mixta Plus 1,165,105 177,582
Argenfunds Renta Pesos 204,190,813 4,657,582
Argenfunds Renta Total 548,961,979 1,311,417
Argenfunds Renta Variable 2,281,738,860 149,062
Argenfunds Retorno Absoluto 214,491,575 956,396
Pionero Acciones 13,492,368 1,665,300
Pionero Ahorro Dólares 10,920,588 1,818,596
Pionero Argentina Bicentenario 424,876,097 2,746,821
Pionero Capital 2,091,257,043 4,283,954
Pionero Desarrollo 4,815,845,697 5,869,207
Pionero Empresas FCI Abierto Pymes 204,630,659 2,329,663
Pionero FF 46,155,016 1,635,163
Pionero Gestión 1,871,950,929 5,661,357
Pionero Pesos 1,231,510,642 22,630,750
Pionero Pesos Plus 15,160,985,615 167,680,294
Pionero Renta 39,925,450 5,399,159
Pionero Renta Ahorro 242,765,317 10,689,989
Pionero Renta Ahorro Plus 811,963,183 6,338,065
Pionero Renta Balanceado 12,507,475,184 21,234,806
Pionero Renta Estratégico 702,329,083 5,867,099
Pionero Renta Fija Dólares 2,863,198 353,113
Pionero Renta Mixta I 77,051,608 870,677
Pionero Retorno 1,391,845,010 1,674,448
39. ACCOUNTING ITEMS THAT IDENTIFY THE COMPLIANCE WITH MINIMUM CASH REQUIREMENTS
--- ---

The items recognized by the Bank to constitute the minimum cash requirement effective for December 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 143,526,540
Other debt securities
Government securities computable for the minimum cash requirements 159,809,912
Financial assets delivered as guarantee
Special guarantee accounts with the BCRA 24,824,547
Total 328,160,999 
- 72 -

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2022

(Translation of Financial Statements originally issued in Spanish – See Note 48)

(Figures stated in thousands of pesos in constant currency)

40. 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 December 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. As of the date of issuance of these consolidated Financial Statements, this proceeding is pending resolution.

Criminal foreign exchange summary proceedings: No. 7642 dated 10/18/2021.

Reason: Supposed non-compliance with article 1 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).

Status: On 12/29/2021, Banco Macro SA and the natural persons subject to summary proceedings filed their joint defenses, offering evidence and requesting an acquittal. On 03/15/2022, the BCRA dismissed the previous defenses performed by the Bank and the rest of the responsibles who, on 03/25/2022, filed an extraordinary appeal and a nullity request which was dismissed by the BCRA. Against such resolution, on 04/25/2022 a complaint appeal was filed to the Economic Federal Court, Courtroom No. 5, which dismissed the abovementioned appeal and submitted the file to an administrative area to continue with the proceeding. As of the date of issuance of these consolidated Financial Statements, the file is on evidence stage in the BCRA.

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. On 01/26/2017 the fines imposed were paid. Against such resolution, the Bank and the individuals liable filed direct appeals, which will be decided at Room III of the CNACAF. Such appeals were dismissed through a final sentence dated 07/18/2019. On 08/15/2019, the Bank filed a federal extraordinary appeal which was dismissed through resolution dated 09/26/2019. On 10/03/2019 the Bank filed a complaint appeal before Argentine Supreme Court (CSJN, for its acronym in Spanish) which, as of the date of issuance of these consolidated Financial Statements, is still pending resolution.

- 73 -

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2022

(Translation of Financial Statements originally issued in Spanish – See Note 48)

(Figures stated in thousands of pesos in constant currency)

Additionally, there are pending summary proceedings before the CNV and the UIF, as described below:

File: No. 1480/2011 (CNV Resolution No. 17529) dated 09/26/2014.

Reason: potential non-compliance with the obligation to inform a “Significant Event”. Penalty amount: 500 (not restated).

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. In December 2021, the CNV referred the proceedings to the Federal Civil and Commercial Court of Appeals (CNACCF, for its acronym in Spanish), under the file number 14633/2021, styled “Szekely, Ladislao et al v. CNV on appealed administrative resolution” which as of the date of issuance of these consolidated Financial Statements, is pending.

File: No. 137/2015 (UIF Resolution No. 136/2017) dated 12/19/2017.

Reason: alleged breach to the contents of the Code of Procedure applicable to Anti-money Laundering and Terrorism Financing as Settlement and Clearing Agent at the time of an inspection of the CNV and to the Internal Audit Process referred to in its capacity as comprehensive settlement and clearing agent (UIF Resolution No. 229/2011, as amended). Penalty amount: 50 (not restated).

Persons subject to summary proceedings: Banco Macro SA, members of the Management Body during the period that is the subject matter of these summary proceedings (Jorge Horacio Brito, Jorge Pablo Brito, Juan Pablo Brito Devoto, Constanza Brito, Marcos Brito, Delfín Jorge Ezequiel Carballo, Delfín Federico Ezequiel Carballo, Carlos Enrique Videla, Alejandro Macfarlane, Guillermo Eduardo Stanley, Emmanuel Antonio Alvarez Agis, Nicolás Alejandro Todesca, Carlos Alberto Giovanelli, José Alfredo Sanchez, Martín Estanislao Gorosito, Roberto Julio Eilbaum, Mario Luis Vicens, Nelson Damián Pozzoli, Luis María Blaquier, Ariel Marcelo Sigal, Alejandro Eduardo Fargosi, Juan Martin Monge Varela and Luis Cerolini in his double capacity as Compliance Officer and member of the Management Body).

Status: on 04/23/2019, UIF passed Resolution No. 41, whereby it resolved the lack of responsibility of Mr. Juan Martín Monge Varela, Luis Maria Blaquier and Mario Luis Vicens, and also imposed fines to the rest liable. On 05/15/2019 the imposed fines were paid and on 06/12/2019, the Bank, its Board of Directors and its statutory audits filed a direct appeal against such resolution, requesting a repeal of the penalty imposed. 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 consolidated 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.

- 74 -

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2022

(Translation of Financial Statements originally issued in Spanish – See Note 48)

(Figures stated in thousands of pesos in constant currency)

Status: on 05/17/2018 UIF passed resolution No. 13/2016, whereby it filed the summary proceedings related to observations over an overall inspection performed by the BCRA. On 06/15/2018, the liable parties filed their defenses. On 07/02/2018, the UIF sustained the lack of capacity to be sued by 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 the 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 became 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 the bank filed a petition for the denied extraordinary appeal to CSJN. As of the date of issuance of these consolidated Financial Statements, 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 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 these consolidated Financial Statements, the case is on the final report stage.

Although the penalties described above do not involve material amounts, as of the date of issuance of these consolidated 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.

- 75 -

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2022

(Translation of Financial Statements originally issued in Spanish – See Note 48)

(Figures stated in thousands of pesos in constant currency)

41. 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> 12/31/2022 12/31/2022 12/31/2021
Subordinated Resettable – Class A USD 400,000,000 (1) USD 400,000,000 72,129,837 81,762,819
Non-subordinated – Class E USD 17,000,000 (2) USD 17,000,000 2,715,556
Non-subordinated – Class B $ 4,620,570,000 (3) 5,825,893
Total 74,845,393 87,588,712

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, in face value, from USD 1,500,000,000 to USD 2,500,000,000 or an equal amount in other currencies, as determined by the Board of Directors in due time. Finally, on October 20, 2021 due to a Board of Director resolution, the Bank required from the CNV a five-year extension of the abovementioned program, which was approved by the Regulator through a note issued on December 15, 2021.

(1) On November 4, 2016, under the 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 a face<br>value of USD 400,000,000 (four hundred million US dollars), under the terms and conditions set forth in the pricing supplement dated October<br>21, 2016. Interest is paid semiannually on May 4 and November 4 of every year and the reset date was November 4, 2021.

As of the date of issuance of these consolidated Financial Statements, the reset rate was established until the maturity date at 6.643% as a result of the benchmark reset rate plus 546.3 basis points, according to the abovementioned terms and conditions. As the Bank had not exercised the option to fully or partially redeem the issuance on the reset date and under the conditions established in the pricing supplement, it was established up to maturity.

On the other hand, it could be fully redeemed, not partially, and only for tax or regulatory purposes. The Bank used the funds derived from such issuance to grant loans in accordance with BCRA guidelines.

(2) On May 2, 2022, under the abovementioned Global Program, the Bank issued Class E non-subordinated simple<br>corporate bonds not convertible into shares, for a face value of USD 17,000,000 at a fixed rate of 1.45%, fully amortizable upon maturity<br>(May 2, 2024), under the terms and conditions set forth in the price supplement dated April 21, 2022. Interest is paid quarterly on August<br>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, according to the current regulations, particularly the BCRA’s foreign exchange regulations, the Bank may opt to redeem, Class E Corporate Bonds in full, not partially, at a price equal to (a) 102% of the outstanding principal if the Bank decides to make the redemption from the date of issuance and settlement through the term of 9 months therefrom, including the last business day; (b) 101% of outstanding principal if the Bank decides to make the redemption within the term starting 9 months after the date of issuance and settlement until the Class E maturity date, in all cases, along with the additional amount and accrued and unpaid interest, excluding the redemption date.

(3) 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, 2022) for<br>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 set<br>forth in the price supplement dated April 21, 2017. Interest is paid semiannually on November 8 and May 8 of every year, beginning on<br>November 8, 2017.

On the other hand, 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.

- 76 -

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2022

(Translation of Financial Statements originally issued in Spanish – See Note 48)

(Figures stated in thousands of pesos in constant currency)

On October 17, 2018 and October 16, 2019, the Board of Directors decided to pay off these corporate bonds for a face value of 1,229,518,000 and 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.

42. 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 December 31, 2022 and 2021, is as follows:

Composition 12/31/2022 12/31/2021
Custody of government and private securities and other assets held by third parties 724,968,797 757,383,931
Preferred and other collaterals received from customers (1) 187,502,326 234,703,412
Outstanding checks not yet paid 19,943,141 15,796,202
Checks already deposited and pending clearance 16,828,520 21,715,717
(1) Related to collaterals used to secure loans transactions and other financing, under the applicable rules<br>in force on this matter.
--- ---
43. TAX AND OTHER CLAIMS
--- ---
43.1. 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 former Banco Macro<br>SA (for the fiscal years ended from December 31, 1998, through December 31, 2000).
The matter under discussion that has not been resolved as yet and on which the<br> regulatory agency bases its position is the impossibility of deducting credits that have collateral security, an issue that has been<br> addressed by the Federal Administrative Tax Court and CSJN in similar cases, which have issued resolutions that are favorable to the<br> Bank’s position.
---
b) The AFIP’s ex-officio undocumented expenses determinations for the periods February, April, May<br>2015 and from July 2015 through January 2018, both included of date April 19, 2021. On October 5, 2021, the Bank filed an appeal to the<br>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<br> accounting effects could arise from the final outcome of the abovementioned proceedings other than those disclosed in these<br> consolidated Financial Statements.
--- 
- 77 -

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2022

(Translation of Financial Statements originally issued in Spanish – See Note 48)

(Figures stated in thousands of pesos in constant currency)

43.2. 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 consolidated 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 consolidated Financial Statements.

44. 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. As a consequence, the following Shareholders’ Meeting will apply 8,607,704 from Unappropriated retained<br>earnings to increase the legal retained earnings.
b) Through Communiqué “A” 6464, as amended, the BCRA establishes the general procedure<br>to distribute earnings. According to that procedure, earnings may only be distributed if certain circumstances are met, such as no records<br>of financial assistance from the BCRA due to illiquidity or shortages in payments of minimum capital or minimum cash requirement deficiencies<br>and not being subject to the provisions of sections 34 and 35 bis of the Financial Entities Law (sections dealing with tax payment and<br>restructuring agreements and reorganization of the Bank), among other conditions listed in the abovementioned communiqué that must<br>be met. In addition, the earnings distribution approved by the Shareholders’ Meeting of the Bank could only be formalized once the<br>Superintendence of Financial and Foreign Exchange Institutions approved it.
--- --- 
- 78 -

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2022

(Translation of Financial Statements originally issued in Spanish – See Note 48)

(Figures stated in thousands of pesos in constant currency)

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 December 31, 2022 was 21,402,113 (nominal value: 3,475,669).

As of December 31, 2022, the related adjustments to be made on unappropriated retained earnings of Banco Macro SA are as follows:

i. Other comprehensive income for 816,164.
ii. The positive net difference between the amortized cost and the fair value of government debt instruments<br>and/or monetary regulation instruments issued by the BCRA for those instruments recognized at amortized cost for 6,145,736.
--- ---

The Bank must verify that, after completion of the earning distribution, a capital maintenance margin equal to 3.5% of risk-weighted assets is kept, apart from the minimum capital required by law, to be integrated by Tier 1(Con1) ordinary capital, net of deductible items (CDCOn1).

According to BCRA Communiqué “A” 7312, the earning distribution was suspended up to December 31, 2021. Through Communiqué “A” 7421, effective since January 1 and up to December 31, 2022, the BCRA allowed financial institutions, which had its authorization, to distribute their earnings up to 20% of the amount that would have been distributed in 12 equal, monthly and consecutive installments.

In addition, through Communiqué “A” 7659 the BCRA suspended the earnings distribution from January 1, 2023 up to December 31, 2023. Lastly, it is worth noting that the BCRA, in the process of authorization of the earning distribution for an amount of 19,751,444 (not restated), as explained in note 34, required to the Bank to deduct the outstanding balance from the sale of Prisma Medios de Pago SA (see note 11). As of the date of issuance of these consolidated Financial Statements, the BCRA has not issued a decision about the application of the abovementioned situation for the fiscal year 2022.

c) Pursuant to CNV General Resolution No. 622, the Shareholders’ Meeting in charge of analyzing the<br>annual Financial Statements will be required to decide on the application of the Bank’s retained earnings, such as the actual distribution<br>of dividends, the capitalization thereof through the delivery of bonus shares, the creation of earnings reserves additional to the legal<br>earnings retained or a combination of any of these applications.

In compliance with the previous comments, the General Regular Shareholders’ Meeting of Banco Macro SA held on April 29, 2022 considering that at the end of the fiscal year ended December 31, 2021, the Bank recorded a negative adjustment to unappropriated retained earnings as of December 31, 2021 for 8,920,325 (not restated) because the monetary effect accrued in relation to monetary items measured at fair value through other comprehensive income had been recorded in the previous period, resolved to distribute the unappropriated retained earnings for 18,202,171 (not restated) as follows (the abovementioned figures are stated in constant pesos as of December 31, 2021):

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.
--- --- 
- 79 -

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2022

(Translation of Financial Statements originally issued in Spanish – See Note 48)

(Figures stated in thousands of pesos in constant currency)

45. CAPITAL MANAGEMENT, CORPORATE GOVERNANCE TRANSPARENCY POLICY AND RISK MANAGEMENT

As a financial institution, the activities of Banco Macro SA are governed by Financial Entities Law No. 21,526, as supplemented, and the regulations issued by the BCRA. Moreover, the Bank adheres to the good banking practices included in the Financial Entities Corporate Governance Guidelines, as supplemented of the BCRA.

The Bank publicly trades its shares on the Buenos Aires Stock Exchange (BCBA, for its acronym in Spanish) and, thus, it is subject to the regulations issued by the CNV.

Through General Resolution No. 797/19, the CNV established the minimum contents of the Corporate Governance Code, adding notions of good corporate governance to corporate management as guidelines or recommendations that seek to provide transparency thereto. The CNV annually requires the issuance of a report in which financial institutions have to explain how the recommendations are implemented or to explain the reasons why it decided not to adopt the good practices described in such resolution. The Bank annually publishes a document called Corporate Governance Explanatory Report together with the Annual Report to the Shareholders for the fiscal year, required by regulations, which is available on the Bank’s website and on that of such enforcement agency.

This regulation reinforces the notions contained in Capital Markets Law establishing principles such as “full disclosure”, “transparency”, “efficiency”, “public investor protection”, “equal footing between investors” and “protection of the stability of financial entities and financial intermediaries”.

On the other hand, as the Bank lists its shares on the NYSE, qualifying as a foreign private issuer, it is required to comply with certain corporate governance standards as established in section 303A of the NYSE’s Listed Company Manual, as amended.

The main guidelines under the BCRA standards contemplated in the revised text “Financial Entities Corporate Governance Guidelines”, as supplemented, are as follows:

·          Ownership structure

As of December 31, 2022, the Bank’s shareholders are:

Full name / corporate name Participating<br><br> Interest Voting Interest
Fideicomiso de Garantía JHB BMA (1) 17.28 19.65
Carballo Delfín Jorge Ezequiel 18.38 20.04
ANSES FGS Law No. 26425 28.80 26.91
Grouped shareholders (Local Stock Exchanges) 11.79 11.21
Grouped shareholders (Foreign stock exchanges) 23.75 22.19
(1) As of the date of issuance of these consolidated Financial Statements and due to the passing of Mr. Jorge<br>Horacio Brito on November 20, 2020 and as a testamentary disposition, his shares were transferred, ad referendum of BCRA, to Fideicomiso<br>de Garantía JHB BMA, which the beneficiaries are his forced heirs.
--- ---

·          Board of Directors and Senior Management

The Bank’s Board of Directors is currently made up of 12 regular directors and 2 alternate directors. Members are renewed by thirds and the appointed Directors remain in office for three fiscal years. Directors are selected and appointed by the Shareholders’ Meeting. Once elected, the BCRA must confirm the designation of the Directors, expressly authorizing them to accept the designation, pursuant to the terms as to experience and knowledge, contained in the rules CREFI 2-Creation, Operation and Expansion –XV- Financial Entities Authorities.

- 80 -

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2022

(Translation of Financial Statements originally issued in Spanish – See Note 48)

(Figures stated in thousands of pesos in constant currency)

Name Position
Delfín Jorge Ezequiel Carballo Chairperson
Jorge Pablo Brito Vice chairperson
Carlos Alberto Giovanelli Director
Nelson Damián Pozzoli Director
Fabian Alejandro De Paul (1) Director
Constanza Brito Director
Sebastián Palla (1) Director
Mario Luis Vicens (1) Director
Delfín Federico Ezequiel Carballo Director
Marcos Brito Director
Mariano Ignacio Elizondo (1)(2) Director
Guillermo Merediz (1)(2) Director
Santiago Horacio Seeber Alternate director
Alan Whamond (1) Alternate director

(1) Independent directors.

(2) Designated by Anses-Fgs proposal.

Directors should be morally suitable, experienced and knowledgeable in the banking business and meet the requirements established in the effective regulations, issued by the BCRA. Compliance with these requirements is assessed when the Shareholders’ Meeting appoints the directors and on a regular basis during their term of office.

At present, six Directors are independent, pursuant to the provisions of the CNV rules and regulations and the provisions of the Financial Entities Corporate Governance Guidelines issued by the BCRA.

Senior Management is directed by a General Manager appointed by the Board and also includes officers reporting directly to the general manager, forming the Senior Management, as well as officers of four staff areas reporting directly to the Board. Members are detailed below:

Name Position
Gustavo Alejandro Manriquez CEO
Gerardo Adrian Álvarez Human resources and administration manager
Alberto Figueroa Risk management manager
Ernesto López Legal manager
Ana María Magdalena Marcet Credit risk manager
Juan Domingo Mazzon Government and Management control manager
Ernesto Eduardo Medina System manager
Brian Anthony Commercial banking manager
Francisco Muro Distribution and sales manager
Jorge Francisco Scarinci CFO
Agustín Devoto Investment banking manager
Adrian Mariano Scosceria Corporate banking manager 
- 81 -

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2022

(Translation of Financial Statements originally issued in Spanish – See Note 48)

(Figures stated in thousands of pesos in constant currency)

·   Committees

The corporate by-laws state that the Board of Directors may establish the Committees that it deems appropriate for the business of the Bank, as well as appoint their members. The Bank currently features the following Committees:

Committee Functions
CNV Audit / SEC They are established in Capital Markets Law, as supplemented.
Internal Audit Overseeing the proper operation of the internal control systems defined at the Bank through a periodic assessment thereof and contributing to improving the effectiveness of internal controls.
Risk Management It is in charge of monitoring Senior Management’s activities involving the management of credit, market, liquidity, operational, compliance and reputation risks, among others. It advises the Board of Directors on the Bank’s risks.
Assets and Liabilities Setting out the Bank’s financial strategy, analyzing the markets and establishing the policies on assets and liabilities, management of market, liquidity, interest rate and currency risks.
IT Overseeing the proper operation of the information technology environment and contributing to improving the effectiveness thereof.
Credit Approving credit transactions based on credit capacity.
Legal Recovery Engaged in defining payment arrangements exceeding the predetermined parameters, as well as reclassifying portfolio to be subject to legal proceedings or accounting derecognitions
Personnel Incentives Ensuring the financial incentives for personnel system is consistent with the culture, the objectives, the business in the long term, the strategy and the control environment of the Bank.
Ethics and Compliance Ensuring the Bank has the proper means to promote correct decision-making and compliance with internal and external regulations.
Corporate Governance and Designations The Committee’s duties include those related to the process of renewing and replacing Senior Management members and the succession plans. It is also in charge of applying the Corporate Governance Code at the Bank and at its subsidiaries.
Anti-money Laundering of assets and terrorism financing Planning and coordinating compliance with the policies established by the Board of Directors on the matter.
Financial Services User Protection The duties of this Committee include those related to ensure the existence and maintenance of a financial services user protection process and a customer service system.
· Code of ethics
--- ---

The Bank has established a Code of Ethics for directors and senior management, expecting that their members act according to the highest standards of personal and professional integrity in all aspects of their activities; to comply with the applicable law, to discourage reproachable behaviors and to comply with the Bank’s Code of Conduct and other policies and procedures governing employee conduct. This Code of ethics is supplemental to the Bank’s Code of Conduct.

· Code of Conduct

The Entity promotes a work environment where responsibility, execution, commitment, results, loyalty, honesty, good communication and teamwork are encouraged.

The goal is to base daily relationships on mutual respect, trust and cordial and simple behavior between coworkers and bosses as well as with suppliers and customers, developing all the activities with the highest ethical working and personal principles.

- 82 -

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2022

(Translation of Financial Statements originally issued in Spanish – See Note 48)

(Figures stated in thousands of pesos in constant currency)

In that direction, the Code of Conduct is intended to establish the principles and values that all Bank members must comply with. The trust provided by shareholders, customers and the general public depends to a large extent on compliance with these principles.

· Ethical line

According to ethical behavior standards, an Ethical line or a report channel was implemented for the Bank and its subsidiaries, Macro Securities SA, Macro Fondos SGFCI SA, Macro Fiducia SA, Argenpay SAU and Fintech SGR, which is managed by an external third party, ensuring compliance with anonymity and confidentiality principles.

Reports are received by the Ethical and Compliance Committee, which becomes aware of them, as well as the resolution of cases, following the protocols.

Branches

As of the date of issuance of these consolidated Financial Statements, the Bank has 467 branches throughout the entire country.

Subsidiaries

The Bank carries out certain transactions through its subsidiaries, which are identified in note 3 to these consolidated Financial Statements.

Business lines

The Bank’s business lines and transactions with trusts are mentioned in notes 1 and 37, respectively.

·       Incentive practices

The Bank adopts a compensation policy that comprises fixed and variable compensation; the latter is granted within the framework of an objective and competency assessment process.

The variable compensation program, in the context of the compensation policy, is consistent with the Bank’s mission, values, organization, objectives, long-term business sustainability, strategy, control environment and the prudent assumption of risk. It is aimed at recognizing the extraordinary performance displayed by employees according to:

ü Their contribution to the results reached.
ü Their management in keeping with the Bank’s<br>mission and values.
--- ---

The key variables in determining compensation are:

ü The level of responsibility and complexity of<br>the position.
ü The person’s competencies and potential.
--- ---
ü The person’s performance and outcomes.
--- ---
ü The position with respect to the benchmark market.
--- ---
ü The results reached by the Bank.
--- ---

The Incentives Committee is in charge of ensuring the financial incentives for personnel system are consistent with the culture, the objectives, the business in the long term, the strategy and the control environment of the Bank, and the prudent assumption of risks.

The Bank aims at compensating personnel ensuring performance recognition, internal equity, competitiveness, productivity, efficiency and added value.

·          Role of financial agent

The Bank acts as financial agent in the Provinces of Misiones, Salta, Jujuy and Tucumán and the Municipalities of San Miguel de Tucumán and Yerba Buena.

- 83 -

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2022

(Translation of Financial Statements originally issued in Spanish – See Note 48)

(Figures stated in thousands of pesos in constant currency)

·          Corporate Sustainability Policy

The Bank is aware of its responsibility towards the surrounding communities. The Corporate Sustainability area promotes this development by fostering and implementing policies and actions that exert a positive social, environmental and economic impact.

Thus, it engages in constant dialogue with the different areas and stakeholders with the ultimate goal of creating social value and drafting policies aimed at promoting a fair, supporting and equal world.

These sustainability values are disclosed in the Comprehensive Report as a major milestone to align the financial information (in documents such as the Letter to the Shareholders and Financial Statements) and ensure their integration and consistency with corporate sustainability.

·          Anticorruption policy

Pursuant to Law No. 27401 (Law on Corporate Criminal Liability), the Board establishes that officers and employees of the Bank and its subsidiaries shall not offer to pay, pay or authorize the payment of money or anything of value to (public) officers to obtain or keep a business. It also extends these guidelines to the private sphere. These principles are contained in the Code of Ethics for directors and senior managers, and the Code of Conduct for all employees. Besides, the Bank has a Code of Conduct for suppliers.

The laws of other jurisdictions with similar prohibitions apply, especially the Foreign Corrupt Practices Act (FCPA), because Banco Macro SA is a foreign company that lists its shares in the NYSE and is subject to SEC control and oversight.

The Group companies that wish to perform any transaction involving any public administration officer, public agency or public company, either Argentine or foreign, shall communicate this event in advance to the Board through the General Manager and inform, before the transaction is conducted, the agents or intermediaries that may be involved in the transaction. The Bank also has a manual with guidelines for interacting with public officers.

This communication duty is not mandatory for the transactions derived from agreements with provincial financial agents (except for the subscription of framework agreements), ordinary bank transactions (for example, payroll processing) and the transactions that do not pose any major risk due to the minimum amounts involved.

Although these anticorruption policies are aimed at transactions within the public sector, they also apply to transactions between private parties, as specifically set forth in the Code of Ethic and the Code of Conduct.

The Bank has in place an Anticorruption Policy and an Integrity Program. The Ethics and Compliance Committee will be responsible for its adoption, follow-up and period reporting to the Board.

·          Transactions with related parties – Policy on conflict of interest

As an authorized financial institution, Banco Macro SA complies with the provisions and reporting requirements established in Financial and Foreign Exchange Entities Law No. 21526 and the regulations issued by the regulatory agency (BCRA).

As established by law (Argentine Business Company Law No. 19550), specific applicable regulations (Capital Markets Law, as supplemented), professional accounting standards (Technical Resolution No. 21), IAS 24 and best practice recommendations, the Bank reports on the transactions with related parties in notes to the Financial Statements. Such transactions are carried out under usual market conditions. See also note 16 to these consolidated and separate Financial Statements.

Under current Argentine legislation, directors are required to perform their duties with the loyalty and diligence of a prudent businessman. Directors are jointly and severally liable to the Bank, the shareholders and third parties for a poor performance of duties and infringements to the law, bylaws and regulations, as the case may be, and are responsible for repairing the damages caused by fraud, abuse of authority or negligence.

- 84 -

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2022

(Translation of Financial Statements originally issued in Spanish – See Note 48)

(Figures stated in thousands of pesos in constant currency)

The loyalty duties of a director are considered to include: (i) the ban from using corporate assets and the confidential information to which he/she may have access for personal purposes; (ii) the ban from taking advantage or, due to errors or omissions, allowing a third party to take advantage of the Bank’s business opportunities, (iii) the obligation of acting as director only for the purposes established in the law, the Bank’s bylaws or the intention of the shareholders or the Board of Directors; and (iv) the obligation of taking extreme care so that the acts conducted by the Board of Directors have no direct or indirect effects against the Bank’s interests.

A director should notify the Board of Directors and the Audit Committee about any conflict of interest such director may have in a transaction proposal and should refrain from voting on the matter.

·          Public information

The information related to corporate governance at the Bank is included within the transparency policy contained in such precepts and, hence, is available to interested members of the public on the website www.macro.com.ar (“Conocenos” – Relaciones con Inversores) and additionally, some guidelines are disclosed in other notes and exhibits to these consolidated Financial Statements. Moreover, the Bank’s public information is disclosed on the websites of the BCRA (www.bcra.gob.ar) and the CNV (www.cnv.gob.ar).

In addition, the Bank publishes the Market Discipline Report, pursuant to the guidelines established by the BCRA for such information regime, in accordance with the criteria of the Basel Banking Supervision Committee, which is available at the Bank’s website.

Integral Risk management

Within the framework of the Corporate Governance policy, the Board of Directors of the Bank resolved the creation of a Risk Management Committee. The Bank has appointed a Risk Manager who reports directly to the Board of Directors.

Its duties include ensuring that an independent risk management be established, establishing policies, procedures and measurement methodologies and report systems which allow the identification, measurement and monitoring of the risk under its charge and also the duties of each organizational level in the process.

The risk management process includes the establishment of the exposure limits for each risk by the Board of Directors, a follow-up on the exposure to each limit by the persons in charge, the preparation of regular reports for the Risk Management Committee, a follow-up on the alerts and the implementation of action plans regarding the alerts and the guidelines for developing stress tests.

The system supplements the policies and procedures specific to each risk (Financial, Credit, Operational, Counterparty Credit, Country Risk, Securitization, Reputational, Compliance, Strategic Risks, among others).

In addition, the Credit Risk Management area is in charge of interpreting, executing and guaranteeing the application of the General Credit Policy as approved by the Board of Directors, pursuant to the internal and external standards and regulations on the matter. Credit Risk Management reports functionally to the General Manager.

Risk Management

The Risk Management area is in charge of the Financial Risk, Credit Risk and Operating and Technology Risk areas.

The main procedures carried out by the Risk Management Department are:

·          Stress tests

The process of stress test includes documenting and formalizing the program as well as the persons in charge of carrying it out, the frequency of testing and the validation of the system. It also contemplates the Contingency Plan based on the test results. The Risk Management Committee leads and coordinates this application.

- 85 -

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2022

(Translation of Financial Statements originally issued in Spanish – See Note 48)

(Figures stated in thousands of pesos in constant currency)

·          Economic Capital Calculation

The Risk Management Department estimates the economic capital for each one of the individual risks (Market, Liquidity, Interest Rate, Credit, Counterparty Credit, Concentration, Operational, Securitization, Strategic and Reputational) determined for the Bank on a consolidated basis with its subsidiaries with the same scope as the regulation. The methods used to deal with subsidiaries are exactly the same.

The economic capital sufficiency evaluation process is an integral part of the corporate governance and risk management culture of the entities.

Quantified economic capital was implemented as a formal procedure, both currently and prospectively, and is a tool used in the day-to-day management of risks, in preparing the Business Plan and the Stress Tests.

The methods used to measure the economic capital of each risk were documented and approved by the Management, pursuant to the internal rules on Corporate Governance and Risk Management.

The results must serve to support decision-making, including strategic decisions adopted by the Board and the Senior Management. In this way they may:

- Estimate the level and trend of the relevant<br>risks and the effects thereof on capital needs.
- Evaluate the reasonability of the basic assumptions<br>used in the capital measuring system and the sensitivity of the results to changes in those assumptions.
--- ---
- Determine whether the Bank has sufficient regulatory<br>capital to cover the different risks and if it meets the capital sufficiency goals required.
--- ---
- Consider its future capital requirements based<br>on the risk profile and, according thereto, introduce the necessary adjustments into the strategic plan.
--- ---

The essential elements of the capital evaluation include:

- Policies and proceedings ensuring the risk management<br>process.
- A process connecting economic capital with risk<br>level.
--- ---
- A process establishing capital sufficiency goals<br>based on the risks, taking into account the strategic approach and the business plan.
--- ---
- An internal control process, in order to secure<br>a comprehensive risk management.
--- ---

The Bank actively uses guarantees to mitigate its credit risk.

Excessive risk concentration:

To avoid excessive risk concentrations, the Bank’s policies and procedures include specific guidelines to focus on keeping a diversified portfolio. The identified credit risk concentrations are controlled and managed accordingly. The selective coverage is used at the Bank to manage risk concentrations both in terms of relationships and industry.

In addition, note that the Bank meets the provisions established by the BCRA as regards maximum assistance limits to given groups of debtors, in order to atomize the portfolio, reducing credit risk concentration.

The main types of risks that the Bank is exposed to are those related to credit risk, liquidity risk, market risk, interest rate risk, foreign currency exchange rate risk, and operational risk.

- 86 -

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2022

(Translation of Financial Statements originally issued in Spanish – See Note 48)

(Figures stated in thousands of pesos in constant currency)

Minimum capital requirements:

The table below shows the minimum capital requirements measured on a consolidated basis, effective for the month of December 2022, together with the integration thereof (computable equity) as of the end of such month:

Item 12/31/2022
Minimum capital requirements 105,060,980
Computable equity 515,330,432
Capital surplus 410,269,452

The following are the policies and processes aimed at identifying, assessing, controlling and mitigating each one of the main risks:

45.1 CreditRisk

Credit risk is the risk that the Bank incurs a loss because its customers or counterparties fail to discharge their contractual obligations.

The Bank manages and controls credit risk by setting limits on the amount of risk it is willing to accept and by establishing indicators for monitoring.

The Board approves the credit and risk assessment policy to provide a framework to generate businesses to achieve a proper relationship between the risk assumed and profitability. The Bank has procedure manuals detailing the related guidelines, compliance with effective regulations and limits set. The goals are:

· Achieving<br>an adequate portfolio segmentation per type of customer and economic sector.
· Enhancing<br>the use of tools to analyze and assess risk that best adjust to the customer’s profile.
--- ---
· Establishing<br>consistent guidelines to grant loans following conservative parameters based on the customer’s solvency, cash flows and profitability<br>in the case of companies, and revenues and equity in the case of individuals.
--- ---
· Establishing limits to individual powers to grant<br>credits according to their amount, tending to the existence of specific committees, which, according to their scope of influence, will<br>define the levels of assistance.
--- ---
· Enhancing the quality of the risk assumed, with<br>proper guarantees according to the term of the loan and the level of risk involved.
--- ---
· Monitoring<br>on an ongoing basis the loan portfolio and customer level of compliance.
--- ---

Credit risk management involves the existence of a structure with the characteristics needed to attain the organizational goals during the stages of the credit cycle: admission, follow-up, monitoring and recovery.

The risk assessment process is differentiated based on whether customers belong to Corporate Banking or Retail Banking.

To assess Corporate Banking customers, the Bank has different methods involving different responsibility levels that become increasingly complex according to the size of the transactions in terms of assistance types and amounts, weighed by terms and hedges with guarantees.

For the authorization of assistance involving small amounts, self-liquidating collaterals or temporary assistance, the Bank grants special credit powers, on a personal basis, to higher-ranking officials based on their knowledge, experience and training. At any rate, the use of these powers is associated with the outcome of an objective assessment, avoiding any discretion in the credit approvals.

- 87 -

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2022

(Translation of Financial Statements originally issued in Spanish – See Note 48)

(Figures stated in thousands of pesos in constant currency)

To grant predefined products and restricted amounts to the Small Companies and Agro segments, the Bank has standardized assessment systems that are used on a decentralized manner and include origination scoring and screening methods to admit and assign limits, based on the customers’ economic, financial and equity information. There is also a centralized massive qualification periodic process that Credit Risk Management makes available to branches on a continuous basis.

When transactions in amount the instances of authorization by delegated powers or through the decentralized risk analysis, ratings are approved in the Credit Committees. The powers vested on the different decision-making bodies are continuously reviewed to adjust them to the Bank’s volume of transactions and thus improve credit rating.

The risk analysis of assistance addressed in the Credit Committees is carried out at the Corporate Risk Management Department by specialized risk analysts that prepare separate risk reports per customer or group of companies, which are provided to Committee members to support the credit decisions made.

Risk reports include, at least, information regarding the use of loans and their source of repayment, the debtor’s historical and current behavior and the group of companies to which it belongs; the debtor’s repayment capacity based on cash flows; the guarantees that will cover the transactions, the ownership status, the enforcement possibilities and their sensibility to the changes in the economy; the market in which the debtor operates and the debtor’s position, and the debtor’s equity, economic and financial position and possibility of accessing loans.

The Committees’ resolutions include the terms and conditions applicable to the assistance in terms of the amount, currency, terms, guarantees and follow-up provisions, among others. The decisions are based on the debtor’s cash flows and payment capacity and only to a secondary extent on debtor’s equity and risk mitigating factors.

Credit risk assessment for Retail Banking customers, is governed by specific policies that consider customers’ inclusion in one of the following segments:

·  Salary Plan customers (Public and Private) and retirees whose their retirements and pensions are deposited in the Bank.

·  Open Market customers.

To speed up origination circuits, the Credit Risk Management has widened the use of scoring methods, which impose a minimum limit for the customer to be admitted for credit purposes, considering an acceptable delinquency level.

Consumer portfolio qualifications are available on a permanent basis to branches in the system called Customer Relationship Management (CRM) and to customers through digital channels, which allows operating within the limits and conditions approved by the Credit Risk Management on a centralized basis. This modality restricts the operating risks that are inherent to the assessment.

For new nonprequalified customers, the originator enters the requested transactions in the risk assessment system related to the customer segment, which approves or rejects the transaction; if approved, maximum assistance amounts by product are provided. Assessment systems are mainly based on an admission and certain maximum indebtedness rules and installment/income ratio. The assessment systems are based mainly on a qualification score and certain maximum indebtedness and installment/income relationship rules.

There are specific rules regarding the debtor’s file integration to duly document the data entered into the assessment systems. Credit risk officers also define a credit power system based on the margins to be approved and, if applicable, the exceptions admitted.

The assessment process and its relationship with the loan settlement process, is fully automated: all customers must have a CRM-approved (individual or massive) assessment, an essential requirement to be granted a credit product. In addition, as part of the assessment process, the exception flow and the control of credit powers are also automated. These actions managed to reduce operating risks and allowed tracing transactions and their approval levels.

- 88 -

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2022

(Translation of Financial Statements originally issued in Spanish – See Note 48)

(Figures stated in thousands of pesos in constant currency)

The Bank adopts processes to detect interrelated debtor groups with correlated risk (group of companies) and to group risk exposures with the same debtor or counterparty in different lines of credit.

Before the transactions are settled, a series of controls are implemented to reduce related credit and operating risks and classify transactions within the technical relationships regulatory framework.

The Bank implements a formal, robust and well-defined process to manage nonperforming loans. These procedures are differentiated based on the type of portfolio and delinquency status.

To mitigate credit risk, guarantees are requested on agreed financing. A particular area of the Credit Risk Management Department manages all guarantees received by the Bank and assesses and updates regularly the appraisal value and effective term to monitor the quality of risk mitigators.

Debtor classification according to the BCRA:

As a general regulatory policy for classifying debtors, the Bank follows BCRA related regulations, which provide grouping levels in decreasing order of quality, in direct relation to the customer’s uncollectibility risk.

Classification guidelines also vary depending on whether they are commercial loans or consumer or housing loans.

The basic criterion to classify the commercial portfolio is the future payment capacity of the commitment assumed. The Bank reviews the classification of customers included in this portfolio according to the minimum regularity established by the BCRA, which provides as general rule an annual review of such classification, growing to a semiannual or quarterly frequency based on the increasing order of the debt.

According to their risk of default, the commercial portfolio is classified as follows:

1-Performing

2-a) In a watch list

2-b) Under negotiation or with refinancing agreements

2-c) Under special treatment

3-Nonperformign

4-With high insolvency risk

5-Irrecoverable

To classify the customers of the consumer portfolio and the commercial portfolio with payables of up to 227,220, for which the BCRA authorizes the Bank to follow a simplified method comparable to a consumer loan portfolio, the BCRA defines classification levels according to the days of arrears recorded at the end of the month.

1-Performing: Up to 31 days

2-Low risk: Up to 90 days

3-Medium risk: Up to 180 days

4-High risk: Up to 1 year

5-Irrecoverable: Over 1 year

Credit risk allowances of the loan portfolio

As from 2020, the Bank’s policy concerning credit risk allowances is based on the calculation of ECL based on analytical models (statistical models related to loan portfolio management) pursuant to IFRS 9. According to the guidelines in section 5.5. on Impairment (including the principles and methods to recognize ECL due to significant increases in credit risk and the subsequent impairment of financial assets for ECL), the Bank recognizes the impairment of its financial assets.

- 89 -

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2022

(Translation of Financial Statements originally issued in Spanish – See Note 48)

(Figures stated in thousands of pesos in constant currency)

The criterion to assess whether an instrument is impaired will depend on the type of analysis to which customers are exposed: to estimate ECL on a collective basis, disclosures are grouped based on customer segments showing similar risk characteristics that are relevant for their analysis, while the purpose of the individual assessment is the ECL estimate for customers with significant risk or customers which require a specific treatment, or do not have consistent characteristics with other portfolio segments for which the statistic information is insufficient to predict future behavior.

Under no circumstance could allowances calculated according to IFRS 9 be lower than the minimum allowances established by the BCRA in the revised text of minimum loan loss reserves. If they were lower, the difference should not be booked as loan losses in the Financial Statements, but rather as a deduction of computable equity under BCRA regulations.

The following chart shows the composition of loan loss allowances according to the type of financial instrument as of December 31, 2022, and 2021:

Composition 12/31/2022 12/31/2021
Loans and other financing 11,002,339 18,761,240
Loans commitment 696,767 664,446
Other financial assets 91,041 51,518
Other debt securities at amortized cost 796 1,057
Total 11,790,943 19,478,261

The Credit Risk Management manages credit risk, which consists of identifying, assessing, following up, controlling and mitigating this risk across credit cycle stages.

The Credit Risk Management Office designs and develops ECL models. It reports to the Credit Risk Management, which is also in charge of designing and calculating rating and scoring models to quantify credit risk and the measures to calculate PD, EAD and LGD, as well as other models to calculate the impact of the prospective view.

The Administration and Credit Operation Management, through the Credit Review area, analyze the entire portfolio under individual assessment and classifies customers in different credit risk stages. Together with the Corporate Risk and Credit Recovery Management Departments (that contribute their view from a standpoint of risk assessment and recovery management), they calculate ECL for corporate customers in stage 2 and stage 3.

The definitions and assessment of ECL are regularly presented to the Risk Management Committee, which approves the model methodologies, adjustments and validation.

45.1.1  Assessment of credit risk impairment

Definitions of significant increase in risk (SICR), impairment and default

The Bank recognizes the impairment of its financial assets according to point 5.5. of IFRS 9. To such end, the Bank calculates the ECL of financial instruments over a three stage risk model based on the changes in credit quality detected since the initial recognition, as summarized below:

· Stage 1: includes financial instruments which<br>credit risks have not increased significantly since initial recognition;
· Stage 2: includes financial instruments which significantly<br>SICR but it is not yet considered credit-impaired, and
--- ---
· Stage 3: comprises credit-impaired financial instruments.
--- --- 
- 90 -

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2022

(Translation of Financial Statements originally issued in Spanish – See Note 48)

(Figures stated in thousands of pesos in constant currency)

The Bank measures ECL according to the following definitions:

· For financial instruments included in Stage 1, the Bank measures<br>ECL as the portion of lifetime ECL that result from potential default events within the next 12 months.
· For financial instruments included in Stages 2 and 3, the Bank<br>measures lifetime ECL.
--- ---
· To calculate ECL, prospective information is considered according<br>to IFRS 9.
--- ---

Default:

The default status is defined according to the type of portfolio and segment, and thus, the impairment model is applied in accordance with the risk of each transaction. The default status is defined as follows:

· For the Commercial Portfolio: there is a “Default”<br>if the customer, based on an individual analysis, has been classified in Stage 3, as described in “Customers analyzed on an individual<br>basis.”
· For the Medium-sized and large companies and<br>Corporate segments of the Commercial Portfolio Comparable to Consumer: there is a “Default” if the customer has a transaction<br>that is more than 90 days past due or if a refinancing loan has been granted.
--- ---
· For the Consumer Portfolio or the<br>Commercial Portfolio Comparable to Consumer (excluding Medium-sized and large companies and Corporate segments): there is a “Default”<br>if the transaction is more than 90 days past due or if a refinancing loan has been granted in relation to the product assessed in the<br>performance period.
--- ---

Customers analyzed on a collective basis:

For the group of transactions in the Consumer portfolio and the Commercial Portfolio Comparable to Consumer, which is deemed a collective analysis portfolio, the Bank defined the application of the following delinquency criteria under IFRS 9:

· Stage 2: it involves the transactions<br>that are more than 30 days past due, refinanced transactions that are more than 90 days past due, and those with PD differences between<br>the time of transaction observation and origination and implying a SICR in absolute and relative terms.
· Stage 3: transactions that are<br>more than 90 days past due.
--- ---

Thus, summing up, the criterion used by the Bank to define the different transaction staging rules, according to its reporting structure, depend on the following characteristics:

· Type of product
· Segment
--- ---
· Portfolio
--- ---
· Delinquency
--- ---
· Refinancing
--- ---
· SICR under qualitative criterion
--- ---

ECL calculation:

The ECL is calculated using the following formula, the parameters of which are described below:

ECL = PD x EAD x LGD

Probability of default (PD)

The PD represents the probability of not paying for a transaction within a given term.

To calculate expected losses, the Bank considers the creation of two types of probabilities of default:

· PD at 12 months (Point in Time – PIT):<br>this is the estimated probability of occurrence of a default in the next 12 months of life of the instrument after the analysis date.<br>The Bank uses this criterion for the transactions with no SICR.
· PD Lifetime: this is the estimated probability<br>of occurrence of a default throughout the remaining life of an instrument, i.e. the PD referring to the maximum contractual term during<br>which the entity is exposed to the credit risk. The Bank applies this criterion to transactions with SICR (Stage 2), as established in<br>IFRS 9.
--- --- 
- 91 -

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2022

(Translation of Financial Statements originally issued in Spanish – See Note 48)

(Figures stated in thousands of pesos in constant currency)

The PDs are assessed per customer in individual analyses and per product in the case of customers analyzed collectively.

The PDs are amended by the macroeconomic models applied for the prospective vision.

The proposals to implement PD models are submitted for approval to the Risk Management Committee. The methods, variables, development population, observation windows and results that support the preparation of these models are tested and adjusted at least once a year.

The following table discloses the risk levels score and rating arising from the Bank’s models:

12/31/2022 12/31/2021
Category Weighted<br> <br>PD % Gross<br><br> Carrying<br><br> Amount Weighted<br> <br>PD % Gross<br><br> Carrying<br><br> Amount
Performing 1.54 % 97.32 % 2.05 % 96.76 %
High grade 0.93 % 89.00 % 1.02 % 79.54 %
Standard grade 5.00 % 4.44 % 5.05 % 12.44 %
Sub-standard grade 11.58 % 3.88 % 11.26 % 4.78 %
Past due but not impaired 29.73 % 1.86 % 30.27 % 2.33 %
Impaired 100.00 % 0.82 % 100.00 % 0.91 %
Total 100.00 100.00

Exposure at default (EAD)

The EAD represents the exposure of a financial instrument on the date of the analysis, i.e. the level to which the Bank is exposed to credit risk in the event of a potential default by the counterparty.

To calculate the EAD, segmentation is performed at product level, according to the following differentiation:

· Products with no exposure certainty: in the case<br>of revolving products (credit cards and saving accounts) in stages 1 and 2, in order to calculate the EAD, it is necessary to estimate<br>a credit conversion factor (CCF). For these transactions, the CCF represents the average percentage of exposure increase that may be observed<br>in a contract from measurement to default. For these products, in stage 3, no additional increase is considered in the exposure.
· Products<br>with exposure certainty: in these types of products (generally amortizable loans), future exposure is known because the counterparty<br>cannot increase its exposure beyond what was agreed upon in the contractual schedule. Therefore, the CCF does not apply to these products,<br>and the EAD varies at each moment in time by reflecting the amortization of the loan balance due.
--- ---

Loss given default (LGD)

LGD is the estimated loss in the case of default. It is based on the difference between all contractual cash flows and the cash flows expected by the lender (i.e., all cash shortfalls), considering the proceeds from the realization of collateral.

It is the supplement to the unit of the recovery rate; that is, the proportion not collected by the Bank with respect to the EAD. Consequently, the amount at default is compared with the present value of the amounts recovered after the date of default.

- 92 -

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2022

(Translation of Financial Statements originally issued in Spanish – See Note 48)

(Figures stated in thousands of pesos in constant currency)

LGD varies based on the type of counterparty, aging, type of claim and the existence of guarantees securing credits. It is expressed as a percentage of the loss for EAD.

Just as the PDs, to assess the LGD, a distinction is made per customer in individual analyses and per product in the case of customers analyzed collectively. The Bank bases its estimates on the historical information observed regarding the recoveries obtained on customers or default transactions, discounted at the effective interest rate of such agreements and measured upon default.

Once the recovery rates are obtained, this behavior is projected through the triangle method to estimate the periods with less maturity. Finally, the weighted average of the loss for each portfolio is determined.

The LGDs are also amended by the macroeconomic models applied for the prospective vision.

Customers analyzed on an individual basis:

The Bank’s credit risk impairment assessment model is set to analyze individually all Corporate Portfolio customers, as defined by the BCRA, financial institutions, the public sector and government and private securities.

To make such an assessment, some objective data were defined to analyze whether there is a SICR and to determine whether it should be reclassified to stage 2 or to stage 3 when a default is produced or expected, or whether they should remain in stage 1. Those events comprise mainly material delays in the main credit lines granted, the Bank’s legal action for the assistance granted, the petition for insolvency proceedings or bankruptcy, and past due loans with pending principal, among others.

All the customers subject to the individual analysis are examined on a monthly basis to define the stage, following different criteria for each one of them:

Stage 1: the customers whose individual assessment reflects the following characteristics are deemed included:

· The financial instruments did not experience<br>significant risk increases.
· The customer’s cash flow analysis shows<br>that it has the ability to meet all its obligations adequately.
--- ---
· It has a liquid financial position, with low<br>level of indebtedness.
--- ---
· Cash flows are not subject to drastic changes<br>in the event of major variations in the behavior of own and sector variables.
--- ---
· It regularly pays its obligations, even when<br>it suffers minor and insignificant delays.
--- ---

This stage also includes:

· The customers previously included in stages 2<br>or 3 who improved their credit risk indicators and meet the parameters defined for stage 1.

Stage 2: this stage includes the customers that, based on the individual analysis of their payment capacity, have a SICR that is not sufficiently severe to set default as defined for stage 3.

Some elements considered upon defining the existence of a significant increase in credit risk are:

· Profitability, liquidity and solvency indicators<br>that tend to weaken, or some of the indications of impairment:
o There is a significant increase in payables without a consistent rise in revenues.
--- ---
o There is a major decline in operating margins, or existence of operating loss.
--- ---
o There are adverse changes in the context that exert a negative effect on future financial flows.
--- ---
o There is a drastic decline in demand or negative changes in the business plans.
--- ---
o There are significant changes in the value of the guarantees received
--- --- 
- 93 -

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2022

(Translation of Financial Statements originally issued in Spanish – See Note 48)

(Figures stated in thousands of pesos in constant currency)

· The<br>arrears in payment to the Bank are due to current operating or extraordinary circumstances, and a prompt resolution is expected.

This stage also includes:

· The customers that, having been included in stage<br>3, improved their credit risk indicators and are no longer at default, but which status prevents them from being reclassified to stage<br>1.

Stage 3: it includes the customers that, after an individual analysis, experience some of the following situations:

· Significant delays in the main credit lines granted,<br>with no agreement with the Bank.
· Have<br>been subject to complaints filed the Bank for the recovery of the assistance granted.
--- ---
· Filed<br>for insolvency proceedings or went into bankruptcy
--- ---
· Refinance<br>their payables systematically and have still not settled over 5% of the refinanced principal.
--- ---
· Cash<br>flows analysis shows that it is highly unlikely that the customer may meet all its obligations in the agreed-upon conditions.
--- ---

The Credit Administration and Transactions Department analyzes all the portfolio under this approach, with special emphasis on customers in stages 2 and 3 in the previous month and those showing objective data that could evidence the existence of a SICR. The study is supplemented with the macroeconomic context and other news in relation to the performance of customers. Its staging proposal is submitted to the consideration of Corporate Risk and Credit Recovery Management Departments, which incorporate their own vision of the customer or the activity sector. The final assessment of the stage assigned to each customer is approved by the Credit Risk Management and is used as an input to estimate the ECL of the customers analyzed on an individual basis.

ECL calculation for customers included in an individual analysis:

Stage 1: the estimates of the customers classified in stage 1 arise from the parameters under expected credit loss models, whose characteristics are described in the previous sections on PD, EAD and LGD.

Stages 2 and 3: based on the evidence gathered upon the analysis, the Credit Risk Management –considering the level of progress of collection negotiations, as well as the evidence from a potential sale of collateral received or other credit improvements making up the contractual terms– prepares three potential recovery scenarios for each credit transaction of stage 2 and 3 customers, calculating the current value of expected flows for each scenario, which are weighted in view of their probability of occurrence. The expected loss of each transaction is the difference between the book payable of each transaction and the present weighted value of expected cash flows.

45.1.2  Prospective information used in ECL models

The calculation of ECL for risk impairment includes and is adjusted prospectively with respect to the portfolio behavior. To such end, the Bank examines the macroeconomics variables which have an impact on PD and LGD and designed 4 models which differ by customer type: Retail, Agro, Pymes and Commercial.

The main economic variables that impact on the expected losses used to calculate ECL for each economic scenario are changes in GDP, changes in interest rates, among others.

As established in IFRS 9, impact is calculated based on the different behavior scenarios of the variables; to such end, a 36-month estimate on the variables used for the models is requested from a well-known economic consulting firm. This estimate is prepared for three alternative macroeconomic scenarios, to which a likelihood of occurrence is assigned.

- 94 -

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2022

(Translation of Financial Statements originally issued in Spanish – See Note 48)

(Figures stated in thousands of pesos in constant currency)

Finally, the Bank calculates ECL by applying the alternative scenarios on a weighted basis, which are updated on a quarterly basis in each calendar quarter.

The value of the macroeconomic variables used in calculating the forward-looking adjustment is restricted to econometric model calculations and the estimates of the independent consultant in relation to those variables. However, in line with the “Guidance on credit risk and accounting for expected credit losses” of the Basel Banking Supervision Committee, the Bank applies its own criterion based on experience in order to consider reasonable and sustainable prospective information in due manner (including macroeconomic factors) and, as applicable, to determine the proper level of value corrections.

The following table shows the estimated values for macroeconomic variables used in the models for each scenario (base case, favorable and downside), with the assigned probability of occurrence to each scenario for the fiscal year 2023:

Key Drivers ECL Scenario Assigned<br> Probabilities 2023
% %
Base case 70 1.00
GDP growth % Favorable 10 2.48
Downside 20 (3.01 )
Base case 70 67.97
Interest rates % Favorable 10 58.72
Downside 20 88.19
Base case 70 107.45
CPI % Favorable 10 85.82
Downside 20 170.55

45.1.3  Additional Forward-looking allowances based on expert credit judgment

Adjustment for uncertainty in external obligation restructuring

At the end of the fiscal year 2021, the Bank decided to record an additional adjustment, based on expert credit judgment and on a prospective basis after estimating an incremental effect on ECL allowances in order to cover an uncertain macroeconomic scenario due to the lack of an agreement between the Argentine Government and the IMF to restructure the debt. As of December 31, 2021, this adjustment amounted to 3,868,593.

When the agreement with the IFM was reached and approved by the Federal Congress, the Bank began to reverse the additional ECL. As of December 31, 2022 the Bank decided that the circumstances that generated the additional adjustment ceased to exist, therefore no other adjustment was recorded for this concept.

Adjustment for uncertainty about conditions of accessing loans to MIPYMES

As of December 31, 2022, the ECL were calculated with adjusted parameters considering the period November 2020 through October 2022. This adjustment determined a reduction in the default rates of MIPYMES that is explained by the application of the government policies of regulated and subsidized interest rates through financing programs to MIPYMES, which benefits the Commercial Portfolio Comparable to Consumer and MIPYMES’s natural persons from the Consumer Portfolio, enabling them to have access to loans with negative interest rates, in an growing inflationary context.

- 95 -

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2022

(Translation of Financial Statements originally issued in Spanish – See Note 48)

(Figures stated in thousands of pesos in constant currency)

As of the date of issuance of these consolidated Financial Statements, the Management considers that there is uncertainty about the conditions of the interest rate policy and the access to loans from the portfolio that was able to reduce its default rates. It is also understood that there are doubts as to whether these conditions will prevail in the future.

Therefore, the Bank decided to record an additional allowance for 1,514,000 that represents the difference between the ECL amount generated by the application of the adjustment for MIPYMES´s portfolio and the estimated impact that it would have on the ECL for companies on an individual basis if there is a negative change in the interest rate policy.

45.1.4  Portfolio quality

The Bank discloses in Exhibit B “Classification of loans and other financing by situation and collateral received” in these consolidated Financial Statements, a breakdown of loans and other financing by classification levels and collateral received.

In addition, the table below shows the analysis by aging of performing loans in arrears (in days):

12/31/2022
Delinquent, performing (in days)
Portfolio Type 0 to 31 From 32 to <br> 90 From 91 to <br> 180 From 181 to <br> 360 Over 360
Commercial loans 98.8 % 1.2 % 0.0 % 0.0 % 0.0 %
Commercial loans comparable to consumer 99.9 % 0.1 % 0.0 % 0.0 % 0.0 %
Consumer loans 100.0 % 0.0 % 0.0 % 0.0 % 0.0 %
Total 99.8 % 0.2 % 0.0 % 0.0 % 0.0 %
12/31/2021
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Delinquent, performing (in days)
Portfolio Type 0 to 31 From 32 to <br><br>90 From 91 to<br><br> 180 From 181 to<br><br> 360 Over 360
Commercial loans 98.9 % 0.9 % 0.0 % 0.2 % 0.0 %
Commercial loans comparable to consumer 99.7 % 0.3 % 0.0 % 0.0 % 0.0 %
Consumer loans 99.5 % 0.5 % 0.0 % 0.0 % 0.0 %
Total 99.4 % 0.5 % 0.0 % 0.1 % 0.0 % 
- 96 -

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2022

(Translation of Financial Statements originally issued in Spanish – See Note 48)

(Figures stated in thousands of pesos in constant currency)

The following table shows the loans and other financing portfolio under credit risk by industry sector, classified by risk stage and identifying the expected loss calculated under individual or collective basis:

1 2
Collective Individual Collective Individual 3 12/31/2022
Loans and other financing 479,452,940 104,988,725 17,579,354 2,570,188 5,012,162 609,603,369
Non-financial public sector 213,611 1,993,184 29 111 2,206,935
Other financial entities 127 935,286 935,413
Non-financial private sector 479,239,202 102,060,255 17,579,325 2,570,188 5,012,051 606,461,021
Individuals 274,924,089 3,148,236 12,067,795 2,668,258 292,808,378
Manufacturing Industry 31,183,788 24,274,647 746,964 1,329,244 403,405 57,938,048
Agricultural and cattle industry 44,869,029 17,883,431 799,999 1,240,944 1,268,562 66,061,965
Services 65,880,196 8,552,942 2,522,295 351,183 77,306,616
Commercial activities 44,682,587 23,420,277 1,061,948 226,414 69,391,226
Exploration of mines and quarries 2,247,027 7,225,151 21,074 3,182 9,496,434
Financial intermediation 2,480,513 9,527,822 60,956 25,963 12,095,254
Construction activities 9,787,338 7,874,875 184,136 43,311 17,889,660
Electricity supply and gas 503,461 152,874 7,295 1,609 665,239
Public administration 2,496,835 104,849 20,125 2,621,809
Water supply and public sanitation 184,339 2,014 39 186,392
1 2
--- --- --- --- --- --- --- --- --- --- --- --- ---
Collective Individual Collective Individual 3 12/31/2021
Loans and other financing 514,367,442 157,218,100 17,852,932 9,225,497 6,425,695 705,089,666
Non-financial public sector 139,590 4,488,641 75 4,628,306
Other financial entities 4,086 2,944,901 2,948,987
Non-financial private sector 514,223,766 149,784,558 17,852,857 9,225,497 6,425,695 697,512,373
Individuals 323,205,610 2,745,926 10,040,814 3,296,663 339,289,013
Manufacturing Industry 31,780,091 46,464,909 845,026 3,533,350 193,016 82,816,392
Agricultural and cattle industry 40,312,462 22,054,630 3,065,295 5,692,147 1,015,275 72,139,809
Services 61,670,626 19,022,152 2,421,080 578,179 83,692,037
Commercial activities 39,999,096 27,407,746 1,011,514 304,296 68,722,652
Exploration of mines and quarries 2,312,433 12,006,425 35,904 908,802 15,263,564
Financial intermediation 2,817,845 11,867,948 94,079 10,206 14,790,078
Construction activities 8,346,506 7,923,998 221,929 93,261 16,585,694
Electricity supply and gas 643,481 290,824 25,968 3,348 963,621
Public administration 3,025,323 69,117 22,184 3,116,624
Water supply and public sanitation 110,293 22,131 465 132,889 
- 97 -

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2022

(Translation of Financial Statements originally issued in Spanish – See Note 48)

(Figures stated in thousands of pesos in constant currency)

45.1.5 Collateral and other credit improvements

·  Guarantees received for the entirely portfolio

The following table shows the amounts of guarantees received for the entire portfolio as of December 31, 2022.

Fair<br> value of collateral
Class of<br> financial<br> instrument Maximum<br><br> exposure to<br> credit risk Pledges<br> on<br> time<br> deposits Deferred<br><br> payment<br> checks Mortgage<br><br> on real<br> property Pledges<br> on<br> vehicles and<br> machinery Pledges<br> on<br> personal<br> property Other Total<br><br> collateral Net<br><br> exposure Associated<br><br> ECL
Loans and other financing 609,603,369 1,892,396 28,716,066 39,795,825 9,011,936 3,284,991 100,749,510 183,450,724 426,152,645 11,002,339
Loans commitment 676,242,884 130,635 61354 6517 376514 3,476,582 4,051,602 672,191,282 696,767
Other financial assets 53,527,298 53,527,298 91,041
Other debt<br> Securities at amortized cost 1,347,372 1,347,372 796
Total 1,340,720,923 2,023,031 28,716,066 39,857,179 9,018,453 3,661,505 104,226,092 187,502,326 1,153,218,597 11,790,943

· Guarantees received for the portfolio in Stage 3

The following table shows the amounts of guarantees for the portfolio in Stage 3 as of December 31, 2022.

Fair<br> value of collateral
Class of<br> financial<br> instrument Maximum<br><br> exposure to<br> credit risk Pledges<br> on <br> time<br> deposits Deferred<br><br> payment<br> checks Mortgage<br> on<br> real property Pledges<br> on<br> vehicles and<br> machinery Pledges<br> on<br> personal<br> property Total<br><br> collateral Net<br> exposure Associated<br><br> ECL
Loans and<br> other financing 5,012,162 1,084,295 85,325 26,074 345,272 1,540,966 3,471,196 3,458,160
Total 5,012,162 1,084,295 85,325 26,074 345,272 1,540,966 3,471,196 3,458,160

· Guarantees received for the entirely portfolio

The following table shows the amounts of guarantees received for the entire portfolio as of December 31, 2021.

Fair value of collateral
Class of financial<br> instrument Maximum<br> exposure to<br> credit risk Pledges on <br> time<br> deposits Deferred<br> payment<br> checks Mortgage on<br> real<br> property Pledges on<br> vehicles and<br> machinery Pledges on<br> personal<br> property Other Total<br> collateral Net<br> exposure Associated<br> ECL
Loans and other financing 705,089,666 2,637,949 34,658,789 63,571,525 13,880,051 3,377,364 115,127,407 233,253,085 471,836,581 18,761,240
Loans commitment 438,164,047 4,542 146,385 115,666 1,183,734 1,450,327 436,713,720 664,446
Other financial assets 64,515,449 64,515,449 51,518
Other debt Securities at amortized cost 515,601 515,601 1,057
Total 1,208,284,763 2,642,491 34,658,789 63,717,910 13,880,051 3,493,030 116,311,141 234,703,412 973,581,351 19,478,261 
- 98 -

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2022

(Translation of Financial Statements originally issued in Spanish – See Note 48)

(Figures stated in thousands of pesos in constant currency)

· Guarantees received for the portfolio in Stage 3

The following table shows the amounts of guarantees for the portfolio in Stage 3 as of December 31, 2021.

Fair<br> value of collateral
Class of<br> financial<br> instrument Maximum<br><br> exposure to<br> credit risk Pledges<br> on<br> time<br> deposits Deferred<br><br> payment<br> checks Mortgage<br> on<br> real property Pledges<br> on<br> vehicles and<br> machinery Pledges<br> on<br> personal<br> property Total<br><br> collateral Net<br> exposure Associated<br><br> ECL
Loans and<br> other financing 6,425,695 613,180 161,038 29,463 1,689,672 2,493,353 3,932,342 5,150,202
Total 6,425,695 613,180 161,038 29,463 1,689,672 2,493,353 3,932,342 5,150,202

45.2 Liquidity Risk

The liquidity risk is defined as the possibility that the Bank may not be able to comply with expected and unexpected current and future cash flows effectively, as well as guarantees, without affecting daily transactions or its financial position.

In addition, the market liquidity risk refers to the risk that the Bank may not be able to clear or delete a position at market price:

· because the assets involved have no sufficient secondary market; or

· due to market variations.

The Bank features policies regarding liquidity, the purpose of which is to manage liquidity efficiently, optimizing cost and diversification of funding sources, and maximizing the profit from placements through prudent management that ensures the necessary funds to allow the continuity of transactions and compliance with the rules and regulations in force.

In order to reduce the liquidity risk, the Bank has been established a policy with the following main aspects:

Assets: a high-liquidity assets portfolio will be maintained to cover at least 25% of total liabilities, comprising deposits, the corporate bonds issued by the Bank, the repo agreements taken and the financial and interbank loans borrowed.

Liabilities: to minimize the unintended effects of illiquidity, deriving from the possible withdrawal of deposits and the repayment of interbank loans taken, the Bank:

- Seeks the proper diversification of financing sources to enable<br>the constant availability of funds and fulfill institutional obligations within a market variability environment.
- Gives priority to attracting retail deposits to have an atomized<br>deposit portfolio and lower risks in relation to material withdrawals concentrated in a few depositors.
--- ---
- Does not depend excessively on obtaining repo transactions and<br>interfinancial loans as a permanent funding source.
--- ---

In addition, the Bank implemented a series a risk measurement and control tools, including the regular monitoring of liquidity gaps, separated by currency, as well as different liquidity ratios, including the “bi-monetary liquidity ratio”, “Liquidity Coverage Ratio” (LCR) and “Net Stable Funding Ratio” (NSFR), among others.

The Executive Risk Management Department regularly monitors compliance of the different levels set by the Board of Directors in relation to liquidity risk, which include minimum levels of liquidity, maximum concentration levels allowed by type of deposit and by type of customer, among others.

- 99 -

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2022

(Translation of Financial Statements originally issued in Spanish – See Note 48)

(Figures stated in thousands of pesos in constant currency)

In the event of a liquidity crisis, the Bank has a contingency plan with different actions, like as follows:

· Financing through call banking and repo agreements with the BCRA.

· Spot sale of securities government portfolio.

· Limit credit assistance to private sector.

· Increase deposit rates in order to capture deposits.

The following table shows the liquidity ratios during the fiscal years 2022 and 2021, which arise from dividing net liquid assets, made up of cash and cash equivalents, by total deposits.

2022 2021
December, 31 93.65 % 87.37 %
Average 93.59 % 88.63 %
Max 95.25 % 92.77 %
Min 92.45 % 85.50 %

The Bank discloses in exhibit D “Breakdown of loans and other financing by terms” and exhibit I “Breakdown of financial liabilities by residual terms” to the accompanying consolidated Financial Statements the breakdown by contractual maturity, of financial assets and liabilities, respectively.

45.3 Market Risk

Market risk is defined as the possibility of suffering losses in positions on and off the Bank's balance sheet as a result of the adverse fluctuations in the market prices of different assets.

Market risks arise from interest rate, currency and price positions, all of which are exposed to general and specific market changes and changes in the price volatility such as interest rates, credit margins, foreign currency exchange rates and prices of shares and securities, among others.

The Bank determines the market risk exposure arising from the fluctuation in the value of portfolios of investments for trading, which result from changes in market prices, the Bank's net positions in foreign currency, and government and private securities with normal quoted prices.

These risks arise from the size of the Bank’s net positions and/or the volatility of the risk factors involved in each financial instrument.

The Bank features Market Risk Management Policies in which the Bank establishes the proceedings to monitor and control risks derived from the variations in the quotes of financial instruments in order to optimize the risk-return ratio, making use of the appropriate structure of limits, models and management tools. In addition, the Bank features proper tools and proceedings allowing the Risk Management Committee and the Assets and Liabilities Committee to measure and administer this risk.

Risks to which those investment portfolios are exposed are monitored through Montecarlo simulation techniques of “Value at Risk” (VaR). The Bank applies the VaR methodology to calculate the market risk of the main positions adopted and the expected maximum loss based on a series of assumptions for a variety of changes in market conditions.

In order to carry out the abovementioned simulation, the Bank needs to have the Price historical series of those instruments that compose the portfolio.

Prices are corrected by purging the effects of coupon payments and dividend payments, in the case of shares, in order to avoid affecting returns.

The method consists in creating return or price scenarios concerning an asset through the generation of random numbers. This is based on the selection of a stochastic model describing the performance of prices for each asset with the resulting specification of certain parameters required for calculation purposes. The model used is the geometric Brownian motion.

Once all “n” potential scenarios are obtained for valued positions, the P&L vector must be calculated as the difference between the estimated value of the future portfolio and its value upon calculation. Then profit and loss will be placed in order to obtain the value at risk according to the 99% percentage applied.

- 100 -

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2022

(Translation of Financial Statements originally issued in Spanish – See Note 48)

(Figures stated in thousands of pesos in constant currency)

Finally, the Economic Capital by market risk is obtained as the difference between the current value of the portfolio and the critical value previously obtained.

45.4 Interest Rate Risk

The interest rate risk is defined as the possibility that changes occur in the Bank's financial condition as a result of adverse interest rate fluctuations with a negative impact on the Shareholders’ equity and profit or loss.

Within the framework of the interest rate risk management the Bank features a series of policies, procedures and internal controls included in the Structural Risk Management.

The Bank monitors the net present value of its assets, liabilities and off balance sheet items, upon certain disturbance scenarios and interest rate stress through Montecarlo simulation techniques.

For this purpose, the maximum potential loss is determined considering a temporal line of three months and 99% confidence level interval.

The Equity Value Model (EVM) is determined as the net sum of cash flows (interest and principal losses) that the Bank can generate, discounted at market interest rate curve. If the market interest rate curve used for the discount is affected, the effect of such variation impacts directly on the value of the Bank. Generally speaking, reports related to EVM seek to analyze the Bank’s long-term solvency.

It is noteworthy that the use of that approach does not avoid losses beyond those limits in the event of the most significant market changes.

As of December 31, 2022 and 2021, the Bank’s economic capital by type of risk is as follows:

Economic capital (EC<br> – in millions) 12/31/2022 12/31/2021
Interest rate risk 12,656 9,124
Currency Exchange rate risk 10,687 7,454
Price risk 12,362 3,719

45.5 Foreign Currency ExchangeRate Risk

The Bank is exposed to fluctuations in foreign currencies exchange rates in its financial position and cash flows. The larger proportion of assets and liabilities kept are related to US dollars.

The foreign currency position includes assets and liabilities expressed in pesos at the exchange rate as of the closing dates mentioned below. An institution’s open position comprises assets, liabilities and memorandum accounts stated in foreign currency, where an institution assumes the risk. Any devaluation / revaluation of those currencies affect the Bank’s statement of income.

The Bank’s open position, stated in Argentine pesos by currency, is disclosed in exhibit L “Foreign currency balances” to these consolidated Financial Statements.

45.6 Operational Risk

Operational risk is defined as the risk of loss arising from the inadequacy or failure of internal processes, human errors and/or internal system failures, or those originated by external events. This definition includes the Legal Risk but excludes the Strategic Risk and Reputational Risk.

Within such framework, the legal risk (which may occur from within the Bank or externally) comprises, among other aspects, the exposure to penalties, sanctions or other economic consequences or results for failure to comply with any rule or regulation or contractual obligation.

- 101 -

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2022

(Translation of Financial Statements originally issued in Spanish – See Note 48)

(Figures stated in thousands of pesos in constant currency)

On the other hand, the Bank implemented an operational risk management system that meets the guidelines and provisions established by the BCRA in its Communiqué “A” 5398, as amended, and under Communiqué “A” 5272 the BCRA provided for a minimum capital requirement under this description, effective as of February 1, 2012.

The operating risk management system is formed by:

a) Organizational structure: the Bank has an Operational Risk Management that is in charge of managing operational<br>risk and a Risk Management Committee.
b) Policies: the Bank has a “Manual for the Operational Risk Management” approved by the Board<br>of Directors, which define the main concepts, roles and responsibilities of the Board of Directors, the Senior Management and all the<br>areas involved in this risk management.
--- ---
c) Procedures: the Bank features a procedure for the “Collection of events and losses from Operational<br>Risk” that includes a process to gather the Operational Events and Losses to register on a systematic basis the frequency, severity,<br>category and other relevant aspects related to the events and losses from Operational Risk.
--- ---
d) The objective is to assess the Bank’s situation upon occurrence of events, in order to better understand<br>the Operational Risk profile and, if applicable, take the necessary corrective actions.
--- ---

In addition, the Bank has a procedure that establishes the guidelines to prepare risk self-assessments and, in the event of risks exceeding allowed tolerance levels, guidelines to establish risk indicators and action plans.

e) Computer Systems: the Bank has computer systems that allow managing all Operational and Technology Risks.
f) Database: the Bank has an operational risk event database prepared pursuant to the guidelines established<br>in Communiqué “A” 4904, as supplemented.
--- ---
g) Information systems to measure risks: the Risk Management Department generates and sends, on a regular<br>basis, reports to the Board of Directors, the Risk Management Committee and the Senior Management. With such reports the Risk Management<br>Department communicates the results of the follow-up of the management of the main risks to which the Bank is exposed. Each report contains<br>information on risk measurement, evolution, trends, principal exposures, control of main limits and the capital level required for each<br>type of risk.
--- ---

At the meeting of the Risk Management Committee, the Comprehensive Risk Management Department shall submit for consideration the results of the performance of such department and the reports issued during the period under analysis. The resolutions adopted by the Committee shall be recorded in Minutes to be considered by the Board of Directors, who shall subsequently approve, in this manner, the performance and risk level of the analyzed period.

h) Stress tests: stress tests are a support tool to manage risks and a supplement of the results reported<br>by the measurement models of the different risks, which in general show risk measurements that are valid for “normal situations”.

They are also an instrument to evaluate the risk profile since they are used to quantify the potential impact in a situation of significant fluctuation of the variables affecting each risk. Stress tests are as well used in the process of internal assessment of economic capital sufficiency.

Stress tests are aimed at evaluating the Bank’s financial vulnerability potential faced with the sensibility of the main variables affecting each risk. Generally, it is considered a variation of low probability of occurrence, but if materialized may cause significant excess of the tolerance limits established for each risk.

i) Assessment of economic capital sufficiency: each year, the Bank calculates the economic capital for those<br>risks which, for their significance, may, eventually, affect the Bank’s solvency. 
- 102 -

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2022

(Translation of Financial Statements originally issued in Spanish – See Note 48)

(Figures stated in thousands of pesos in constant currency)

At present, the Bank calculates the economic capital of the following risks: Credit, Concentration, Market, Operational, Interest Rate, Liquidity and Concentration of Funding Sources, Securitization, Reputational and Strategic.

Risk management is directly related to economic capital assessment. Thus, it is expected that with a better management and follow-up, the Bank will need to allocate less amount of capital.

Based on the internal models developed, Banco Macro manages its risks, determines its risk profile and calculates, therefore, the necessary capital to develop its activities and businesses, adjusting each risk to its relevant exposure level.

j) Transparency: as a supplement to this Manual and as part of the Corporate Governance policy, the Bank<br>features an Information Policy aimed at allowing shareholders, investors and the market in general to evaluate aspects of the Bank related<br>to capital, risk exposure, risk assessment procedures and capital adequacy.
46. 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, the existing volatility was accentuated for the market values of government and private financial instruments and a process of rescheduling maturities and swaps of certain government debt instruments started. In addition, material increases were observed in the country’s risk and in the exchange rate between the Argentine peso and the US dollar.

Subsequently, 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, including several voluntary swaps and the reached agreements regarding the country’s indebtedness with the International Monetary Fund and the Paris Club, among others.

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 95% as of the date of issuance of these consolidated Financial Statements.

Even though, at the date of issuance of these consolidated 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, considering the effects of the pandemic declared for Coronavirus (COVID – 19) that recently has significantly affected the international economy activity and the military conflict between Russia and Ukraine in the level of the global economic recovery.

Therefore, the Bank’s Management permanently monitors any changes in the abovementioned situations in international and local markets, to determine the possible actions to adopt and to identify the possible impact on its financial situation that may need to be reflected in the future Financial Statements.

47. EVENTS AFTER REPORTING PERIOD

No other significant events occurred between the end of the fiscal year and the issuance of these consolidated Financial Statements that may materially affect the financial position or the profit and loss for the fiscal year, not disclosed in these consolidated Financial Statements.

- 103 -

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2022

(Translation of Financial Statements originally issued in Spanish – See Note 48)

(Figures stated in thousands of pesos in constant currency)

48. ACCOUNTING PRINCIPLES – EXPLANATION ADDED FOR TRANSLATION INTO ENGLISH

These consolidated 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 DECEMBER 31, 2022 AND 2021 | | (Translation of the Financial Statements originally issued in Spanish – See Note 48) | | (Figures stated in thousands of pesos in constant currency as of December 31, 2022) | | | | | Holdings | | | | | | Position | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | 12/31/2022 | | | | 12/31/2021 | | 12/31/2022 | | | | | | Name | Identification | | Fair<br> value | Fair<br><br> value<br> level | Book<br><br> amounts | | Book<br><br> amounts | | Position<br><br> without<br> options | | Options | Final<br> position | | | DEBT SECURITIES AT FAIR VALUE<br> THROUGH PROFIT OR LOSS | | | | | | | | | | | | | | | - Local | | | | | | | | | | | | | | | Government securities | | | | | | | | | | | | | | | Federal government<br> bonds in dual currency at discount - Maturity: 07-21-2023 | | 9146 | | 1 | | 58,946,978 | | | | 58,946,978 | | | 58,946,978 | | Federal government treasury bonds<br> linked at dollar - Maturity: 04-28-2023 | | 5928 | | 1 | | 56,990,201 | | 49 | | 56,990,201 | | | 56,990,201 | | Federal government bonds in dual<br> currency at discount - Maturity: 09-29-2023 | | 9147 | | 1 | | 21,913,191 | | | | 21,913,191 | | | 21,913,191 | | Federal government bonds in dual<br> currency at discount - Maturity: 06-30-2023 | | 9145 | | 1 | | 20,739,047 | | | | 20,739,047 | | | 20,739,047 | | Federal government treasury bonds<br> in pesos adjustment by CER - Maturity: 03-25-2023 | | 5492 | | 1 | | 14,667,234 | | 7,499,991 | | 14,667,234 | | | 14,667,234 | | Federal government bonds in dual<br> currency at discount - Maturity: 02-28-2023 | | 9156 | | 1 | | 11,476,239 | | | | 11,476,239 | | | 11,476,239 | | Federal government treasury bonds<br> in pesos adjustment by CER - Maturity: 03-06-2023 | | 5324 | | 1 | | 5,841,908 | | 3,334,906 | | 5,841,908 | | | 5,841,908 | | Letters of National Estate in<br> pesos adjustment by CER at discount - Maturity: 01-20-2023 | | 9105 | | 1 | | 2,969,113 | | | | 2,969,113 | | | 2,969,113 | | Letters of National Estate in<br> pesos adjustment by CER at discount - Maturity: 02-17-2023 | | 9111 | | 1 | | 2,184,546 | | | | 2,184,546 | | | 2,184,546 | | Federal government treasury bonds<br> in pesos adjustment by CER - Maturity: 05-19-2023 | | 9127 | | 1 | | 2,137,825 | | | | 2,137,825 | | | 2,137,825 | | Other | | | | | | 6,966,936 | | 48,832,493 | | 6,966,936 | | | 6,966,936 | | Subtotal<br> local government securities | | | | | | 204,833,218 | | 59,667,439 | | 204,833,218 | | | 204,833,218 | | Private securities | | | | | | | | | | | | | | | Corporate bonds Genneia SA Class 031<br> - Maturity: 09-02-2027 | | 96105 | | 1 | | 1,329,598 | | | | 1,329,598 | | | 1,329,598 | | Corporate bonds Transportadora<br> de Gas del Sur SA Class 002 - Maturity: 05-02-2025 | | 92902 | | 2 | | 708,031 | | | | 708,031 | | | 708,031 | | Corporate bonds Pampa Energía<br> SA Class I - Maturity: 01-24-2027 | | 91977 | | 2 | | 591,753 | | | | 591,753 | | | 591,753 | | Corporate bonds Tarjeta Naranja<br> SA Class 53 Series 01 - Maturity: 04-05-2023 | | 56056 | | 3 | | 434,678 | | | | 434,678 | | | 434,678 | | Debt Securities in Financial Trusts<br> Confibono | | | | 3 | | 417,426 | | | | 417,426 | | | 417,426 | | Corporate bonds Pan American Energy<br> Argentina S.L Class 21 - Maturity: 07-21-2025 | | 82424 | | 2 | | 335,505 | | | | 335,505 | | | 335,505 | | Corporate bonds Telecom Argentina<br> SA Class 001 - Maturity: 07-18-2026 | | 94390 | | 1 | | 276,554 | | 78,938 | | 276,554 | | | 276,554 | | Corporate bonds Pan American Energy<br> Argentina S.L Class 012 - Maturity: 04-30-2027 | | 95806 | | 1 | | 252,830 | | 257,440 | | 252,830 | | | 252,830 | | Corporate bonds Arcor SAIC Class 018<br> - Maturity: 10-09-2027 | | 96504 | | 1 | | 244,342 | | | | 244,342 | | | 244,342 | | Corporate bonds CT Barragan SA  Class 006<br> - Maturity: 05-16-2025 | | 56137 | | 1 | | 189,080 | | | | 189,080 | | | 189,080 | | Other | | | | | | 1,441,097 | | 3,122,007 | | 1,441,097 | | | 1,441,097 | | Subtotal<br> local private securities | | | | | | 6,220,894 | | 3,458,385 | | 6,220,894 | | | 6,220,894 | | TOTAL<br> DEBT SECURITIES AT FAIR VALUE THROUGH PROFIT OR LOSS | | | | | | 211,054,112 | | 63,125,824 | | 211,054,112 | | | 211,054,112 |

| - 105 - | Delfín Jorge Ezequiel Carballo<br> Chairperson |

| --- | --- |

EXHIBIT A

(continued)

DETAILOF GOVERNMENT AND PRIVATE SECURITIES

ASOF DECEMBER 31, 2022 AND 2021

(Translation of the Financial Statements originally issued in Spanish – See Note 48)

(Figures stated in thousands of pesos in constant currency as of December 31, 2022)

Holdings Position
12/31/2022 12/31/2021 12/31/2022
Name Identification Fair<br> <br><br> Value Fair<br> <br><br> value <br><br> level Book<br><br> amounts Book<br> <br><br> amounts Position<br> <br><br> without <br><br> options Options Final<br> position
OTHER DEBT SECURITIES
Measured at fair value through<br> other comprehensive income
- Local
Government securities
Letters<br> of National Estate in pesos adjusted by CER at discount - Maturity: 02-17-2023 9111 1 44,938,818 44,938,818 44,938,818
Bonds<br> of treasury of federal government in pesos adjusted by CER - Maturity: 03-25-2023 5492 1 34,466,456 20,285,891 34,466,456 34,466,456
Letters<br> of National Estate in pesos adjustment by CER at discount - Maturity: 01-20-2023 9105 1 13,323,179 13,323,179 13,323,179
Letters<br> of National treasury in pesos at discount - Maturity: 02-28-2023 9141 1 11,626,524 11,626,524 11,626,524
Letters<br> of National treasury in pesos at discount - Maturity: 03-31-2023 9164 1 10,732,116 10,732,116 10,732,116
Bonds<br> of treasury of federal government in pesos adjusted by CER - Maturity: 08-13-2023 5497 1 8,802,301 6,030,797 8,802,301 8,802,301
Bonds<br> of treasury of federal government in pesos adjusted by CER - Maturity: 05-19-2023 9127 1 2,849,299 2,849,299 2,849,299
Letters<br> of National Estate in pesos at discount - Maturity: 04-28-2023 9142 1 1,406,688 1,406,688 1,406,688
Bonds<br> of treasury of federal government in pesos adjusted by CER - Maturity: 03-06-2023 5324 1 1,354,629 1,354,629 1,354,629
Bonds<br> of federal government in dollars Step up - Maturity: 07-09-2030 5921 1 520,270 793,058 520,270 520,270
Other 460,401 216,097,027 460,401 460,401
Subtotal<br> local government securities (1) 130,480,681 243,206,773 130,480,681 130,480,681
Central<br> Bank of Argentina Bills
Liquidity<br> letters of Central Bank of Argentina in pesos - Maturity: 01-04-2022 41,921,012
Liquidity<br> letters of Central Bank of Argentina in pesos - Maturity: 01-27-2022 36,776,261
Liquidity<br> letters of Central Bank of Argentina in pesos - Maturity: 01-18-2022 36,305,152
Liquidity<br> letters of Central Bank of Argentina in pesos - Maturity: 01-11-2022 34,527,730
Liquidity<br> letters of Central Bank of Argentina in pesos - Maturity: 01-13-2022 34,092,263
Liquidity<br> letters of Central Bank of Argentina in pesos - Maturity: 01-25-2022 32,241,669
Liquidity<br> letters of Central Bank of Argentina in pesos - Maturity: 01-06-2022 30,950,258
Liquidity<br> letters of Central Bank of Argentina in pesos - Maturity: 01-20-2022 12,203,612
Subtotal<br> Central Bank of Argentina Bills 259,017,957
- Foreign
Government<br> securities
US Treasury<br> Bill – Maturity: 01-10-2023 1 3,894,153 3,894,153 3,894,153
US Treasury<br> Bill – Maturity: 01-17-2023 1 2,652,942 2,652,942 2,652,942
US Treasury<br> Bill – Maturity: 01-19-2023 1 884,217 884,217 884,217
US<br> Treasury Bill – Maturity: 01-20-2022 8,005,927
Subtotal<br> foreign government securities 7,431,312 8,005,927 7,431,312 7,431,312
Total<br> Other debt securities measured at fair value through other comprehensive income (2) 137,911,993 510,230,657 137,911,993 137,911,993
(1) During January 2023, the Bank entered into a voluntary debt<br> swap. The following instruments entered into that swap:
--- ---
• Letters<br> of National Estate in pesos adjusted by CER – Maturity 02-17-2023 (X17F3) for a nominal<br> amount of 20,900,000,000.
--- ---
• Letters<br> of National Estate in pesos at discount – Maturity 02-28-2023 (S28F3) for a nominal<br> amount of 12,893,000,000.
• Letters<br> of National Estate in pesos adjusted by CER – Maturity 01-20-2023 for a nominal amount<br> of 290,000,000.
(2) Changes in business model
--- ---

During the fiscal year, the Bank’s Management decided to update the objective related to certain investments which were reclassified from fair value through OCI to fair value through profit or loss.

During June 2022, the investments in Letters of National Estate in pesos adjusted by CER at discuount maturing on July 29, 2022 and August 16, 2022 were reclassified. At the reclasification date, the fair value of these investments amounted to 88,734,390.

In addition, during August 2022, the investments in Federal government treasury bonds linked to dollar at 0.30% maturing on April 28, 2023 (TV23) were reclassified. At the reclassification date, the fair value of these investments amounted to 48,064,512.

- 106 - Delfín Jorge Ezequiel Carballo<br> Chairperson

EXHIBIT A

(continued)

DETAILOF GOVERNMENT AND PRIVATE SECURITIES

ASOF DECEMBER 31, 2022 AND 2021

(Translation of the Financial Statements originally issued in Spanish – See Note 48)

(Figures stated in thousands of pesos in constant currency as of December 31, 2022)

Holdings Position
12/31/2022 12/31/2021 12/31/2022
Name Identification Fair<br> <br><br> Value Fair<br><br> value <br><br> level Book<br> <br><br> amounts Book<br> <br><br> amounts Position<br> <br><br> without<br><br> options Options Final<br> position
OTHER DEBT SECURITIES<br> <br>Measured at amortized cost
- Local
Government securities
Bonds<br> of treasury of federal government in pesos - Maturity: 05-23-2027 9132 39,222,468 2 40,469,619 40,469,619 40,469,619
Bonds<br> of treasury of federal government in pesos Badlar x 0.7 - Maturity: 11-23-2027 9166 8,374,568 1 8,400,364 8,400,364 8,400,364
Discount<br> bonds denominated in pesos at 5.83% - Maturity: 12-31-2033 45696 657,742 1 507,009 517,875 507,009 507,009
Debt securities<br> of Province of Río Negro in pesos - Maturity: 04-12-2023 42534 203,896 2 200,378 200,378 200,378
Treasury<br> bills of Province of Río Negro Series 02 in pesos - Maturity: 06-15-2023 42555 198,801 1 199,044 199,044 199,044
Bonds<br> of treasury of federal government in pesos at 22% - Maturity: 05-21-2022 5496 44,306,545
Treasury<br> bills of Province of Neuquén Series 1 Class 1 - Maturity: 04-07-2022 42382 607,285
Debt securities<br> of Province of Río Negro in pesos - Maturity: 04-12-2022 42385 425,837
Treasury<br> bills of Province of Río Negro Series 02 Class 01 - Maturity: 06-15-2022 42479 377,125
Treasury<br> bills of Province of Neuquén Series 4 Class 1 in pesos - Maturity: 02-28-2022 42426 89,322
Subtotal<br> local government securities 49,776,414 46,323,989 49,776,414 49,776,414
Central<br> Bank of Argentina Bills
Liquidity<br> letters of Central Bank of Argentina in pesos - Maturity: 01-03-2023 62,002,563 1 62,250,767 62,250,767 62,250,767
Liquidity<br> letters of Central Bank of Argentina in pesos - Maturity: 01-24-2023 61,833,200 1 62,080,786 62,080,786 62,080,786
Liquidity<br> letters of Central Bank of Argentina in pesos - Maturity: 01-05-2023 61,755,250 1 62,003,011 62,003,011 62,003,011
Liquidity<br> letters of Central Bank of Argentina in pesos - Maturity: 01-26-2023 61,586,655 1 61,833,224 61,833,224 61,833,224
Liquidity<br> letters of Central Bank of Argentina in pesos - Maturity: 01-10-2023 61,020,500 1 61,386,248 61,386,248 61,386,248
Liquidity<br> letters of Central Bank of Argentina in pesos - Maturity: 01-12-2023 60,897,625 1 61,141,456 61,141,456 61,141,456
Liquidity<br> letters of Central Bank of Argentina in pesos - Maturity: 01-17-2023 60,292,313 1 60,533,736 60,533,736 60,533,736
Liquidity<br> letters of Central Bank of Argentina in pesos - Maturity: 01-19-2023 60,032,938 1 60,292,343 60,292,343 60,292,343
Internal<br> letters of BCRA exchange rate of reference to rate 0 - Maturity – Maturity: 09-20-2023 3,610,530 2 3,796,524 3,796,524 3,796,524
Internal<br> letters of BCRA exchange rate of reference to rate 0 - Maturity – Maturity: 09-22-2023 3,478,168 2 3,660,475 3,660,475 3,660,475
Other 37,386,546 37,386,546 37,386,546
Subtotal<br> Central Bank of Argentina Bills 536,365,116 536,365,116 536,365,116
Central<br> Bank of Argentina Notes
Liquidity<br> notes of Central Bank of Argentina in pesos - Maturity: 01-04-2023 12,059,395 1 12,105,932 12,105,932 12,105,932
Subtotal<br> Central Bank of Argentina Notes 12,105,932 12,105,932 12,105,932
Private<br> securities
Corporate<br> Bonds Vista Energy Argentina SAU Class 13 - Maturity:  08-08-2024 (3) 56207 1,011,196 1 521,919 521,919 521,919
Corporate<br> Bonds Vista Oil y Gas Argentina SAU Class 15 - Maturity: 01-20-2025 (3) 56637 878,912 2 481,671 481,671 481,671
Debt Securities<br> in Financial Trusts Confibono Series 65 Class A - Maturity: 07-20-2023 56428 116,458 2 116,483 116,483 116,483
Debt Securities<br> in Financial Trusts Secubono Series 221 Class A - Maturity: 07-28-2023 56583 91,182 2 90,941 90,941 90,941
Debt Securities<br> in Financial Trusts Secubono Series 222 Class A - Maturity: 08-28-2023 56660 60,975 3 75,880 75,880 75,880
Corporate<br> Bonds YPF SA Class 043 - Maturity: 10-21-2023 50939 38,684 2 34,863 108,511 34,863 34,863
Debt Securities<br> in Financial Trusts Secubono Series 219 Class A - Maturity: 04-28-2023 56366 35,329 3 24,819 24,819 24,819
Debt Securities<br> in Financial Trusts Red Surcos Series 020 Class A - Maturity: 07-15-2022 55767 83,953
Debt Securities<br> in Financial Trusts Secubono Series 209 Class A - Maturity: 05-30-2022 55616 60,149
Corporate<br> Bonds Banco Santander Rio SA Class 021 - Maturity:  01-26-2022 53219 51,914
Other 210,017
Subtotal<br> local private securities 1,346,576 514,544 1,346,576 1,346,576
Total<br> other debt securities measurement at amortized cost 599,594,038 46,838,533 599,594,038 599,594,038
TOTAL<br> OTHER DEBT SECURITIES 737,506,031 557,069,190 737,506,031 737,506,031
(3) This fair value was obtained from price quotations in pesos.
--- ---
- 107 - Delfín Jorge Ezequiel Carballo<br> Chairperson
--- ---

EXHIBIT A

(continued)

DETAILOF GOVERNMENT AND PRIVATE SECURITIES

ASOF DECEMBER 31, 2022 AND 2021

(Translation of the Financial Statements originally issued in Spanish – See Note 48)

(Figures stated in thousands of pesos in constant currency as of December 31, 2022)

Holdings Position
12/31/2022 12/31/2021 12/31/2022
Name Identification Fair<br><br> Value Fair<br> <br><br> value <br><br> level Book<br> <br><br> amounts Book<br> <br><br> amounts Position<br><br> without<br><br> options Options Final<br> position
Equity Instruments
Measured at fair value through<br> profit or loss
- Local
Mercado<br> Abierto Electrónico SA 3 462,536 400,992 462,536 462,536
C.O.E.L.S.A 3 87,563 73,232 87,563 87,563
Matba Rofex<br> SA 3 58,306 61,161 58,306 58,306
Sedesa 3 21,291 29,835 21,291 21,291
AC Inversora<br> SA 3 19,583 19,826 19,583 19,583
Mercado<br> a Término Rosario SA 3 14,627 14,442 14,627 14,627
Provincanje<br> SA 3 14,506 17,253 14,506 14,506
Pampa Energía<br> SA 457 1 721 531 721 721
Argencontrol<br> SA 3 478 793 478 478
San Juan<br> Tennis Club SA 3 437 851 437 437
Other 10 3,490,243 10 10
Subtotal<br> local 680,058 4,109,159 680,058 680,058
- Foreign
Cedear<br> Exxon Mob 8019 1 22,559 6,298 22,559 22,559
Banco Latinoamericano<br> de Comercio Exterior SA 1 20,957 24,266 20,957 20,957
Cedear<br> Berkshire Hathaway Inc. 8529 1 19,363 9,384 19,363 19,363
Cedear<br> Pepsico 8146 1 18,785 9,348 18,785 18,785
Cedear<br> McDonald 8030 1 17,874 9,425 17,874 17,874
Cedear<br> Vista Oil & Gas 8527 1 14,711 2,556 14,711 14,711
Cedear<br> Wells F&C 8047 1 11,506 6,407 11,506 11,506
Cedear<br> Bankof America Corp. 8281 1 9,267 6,348 9,267 9,267
Sociedad<br> de Telecomunicaciones Financieras Interbancarias Mundiales 3 5,646 5,415 5,646 5,646
Cedear<br> Aztrazden 8244 1 3,657 2,435 3,657 3,657
Other 15,075 54,469 15,075 15,075
Subtotal<br> foreign 159,400 136,351 159,400 159,400
Total measured at fair value<br> through profit or loss 839,458 4,245,510 839,458 839,458
TOTAL EQUITY INSTRUMENTS 839,458 4,245,510 839,458 839,458
TOTAL GOVERNMENT AND PRIVATE<br> SECURITIES 949,399,601 624,440,524 949,399,601 949,399,601
- 108 - Delfín Jorge Ezequiel Carballo<br> Chairperson
--- ---

EXHIBIT B

CONSOLIDATEDCLASSIFICATION OF LOANS AND OTHER FINANCING

BYSITUATION AND COLLATERAL RECEIVED

ASOF DECEMBER 31, 2022 AND 2021

(Translation of the Financial Statements originally issued in Spanish – See Note 48)

(Figures stated in thousands of pesos in constant currency as of December 31, 2022)

COMMERCIAL 12/31/2022 12/31/2021
In normal situation 110,879,468 163,874,686
With senior “A” collateral<br> and counter-collateral 14,400,986 22,331,788
With senior “B” collateral<br> and counter-collateral 18,362,596 31,494,559
Without senior collateral or counter-collateral 78,115,886 110,048,339
Subject to special monitoring 4,151,452
In observation
With senior “A” collateral<br> and counter-collateral 2,871
With senior “B” collateral<br> and counter-collateral 3,434,738
Without senior collateral or counter-collateral 713,843
Troubled 1,400,613 1,462,761
With senior “A” collateral and counter-collateral 71,834
With senior “B” collateral<br> and counter-collateral 925,521 214,487
Without senior collateral or counter-collateral 403,258 1,248,274
With high risk of insolvency 806,278 224,904
With senior “A” collateral<br> and counter-collateral 87,077 196,727
With senior “B” collateral<br> and counter-collateral 594,265 13,431
Without senior collateral or counter-collateral 124,936 14,746
Subtotal Commercial 113,086,359 169,713,803
- 109 - Delfín Jorge Ezequiel Carballo<br> Chairperson
--- ---

EXHIBIT B

(continued)

CONSOLIDATEDCLASSIFICATION OF LOANS AND OTHER FINANCING

BYSITUATION AND COLLATERAL RECEIVED

ASOF DECEMBER 31, 2022 AND 2021

(Translation of the Financial Statements originally issued in Spanish – See Note 48)

(Figures stated in thousands of pesos in constant currency as of December 31, 2022)

CONSUMER AND MORTGAGE 12/31/2022 12/31/2021
Performing 497,279,321 532,302,833
With senior “A” collateral<br> and counter-collateral 33,019,973 37,210,683
With senior “B” collateral<br> and counter-collateral 29,623,850 45,245,051
Without senior collateral or counter-collateral 434,635,498 449,847,099
Low risk 3,860,072 3,767,760
With senior “A” collateral<br> and counter-collateral 59,378 122,391
With senior “B” collateral<br> and counter-collateral 84,565 224,462
Without senior collateral or counter-collateral 3,716,129 3,420,907
Low risk - in special treatment 29,386 121,389
With senior “B” collateral<br> and counter-collateral 39,833
Without senior collateral or counter-collateral 29,386 81,556
Medium risk 2,642,620 2,827,324
With senior “A” collateral<br> and counter-collateral 18,388 17,964
With senior “B” collateral<br> and counter-collateral 68,202 116,648
Without senior collateral or counter-collateral 2,556,030 2,692,712
High risk 2,013,089 3,236,432
With senior “A” collateral<br> and counter-collateral 22,707 41,261
With senior “B” collateral<br> and counter-collateral 78,242 219,598
Without senior collateral or counter-collateral 1,912,140 2,975,573
Irrecoverable 902,056 1,528,819
With senior “A” collateral<br> and counter-collateral 30,675 37,369
With senior “B” collateral<br> and counter-collateral 142,725 372,094
Without senior collateral or counter-collateral 728,656 1,119,356
Subtotal consumer and mortgage 506,726,544 543,784,557
Total 619,812,903 713,498,360
- 110 - Delfín Jorge Ezequiel Carballo<br> Chairperson
--- ---

EXHIBIT B

(continued)

CONSOLIDATED CLASSIFICATION OF LOANS AND OTHER FINANCING
BY SITUATION AND COLLATERAL RECEIVED
AS OF DECEMBER 31, 2022 AND 2021
(Translation<br> of the Financial Statements originally issued in Spanish – See Note 48)
(Figures<br> stated in thousands of pesos in constant currency as of December 31, 2022)

This exhibit discloses the contractual figures as established by the BCRA. The conciliation with the consolidated statement of financial position is listed below:

12/31/2022 12/31/2021
Loans and other<br> financing 598,601,030 686,328,426
Added:
Allowances<br> for loans and other financing 11,002,339 18,761,240
Adjustment<br> amortized cost and fair value 1,687,107 2,200,184
Debt<br> securities of financial trust - Measured at amortized cost 308,364 347,130
Corporate<br> bonds 1,039,008 168,471
Subtract:
Interest<br> and other accrued items receivable from financial assets with impaired credit value (156,643 ) (192,613 )
Guarantees provided and contingent<br> liabilities 7,331,698 5,885,522
Total computable items 619,812,903 713,498,360 
| - 111 - | Delfín Jorge Ezequiel Carballo<br> Chairperson |

| --- | --- |

EXHIBIT C

CONSOLIDATED CONCENTRATION OF LOANS AND FINANCINGFACILITIES AS OF DECEMBER 31, 2022 AND 2021

(Translation of the Financial Statements originally issued in Spanish – See Note 48)

(Figures stated in thousands of pesos in constant currency as of December 31, 2022)

12/31/2022 12/31/2021
Number<br> of customers Cut<br> off balance %<br> of total<br><br> portfolio Cut<br> off balance %<br> of total <br><br> portfolio
10 largest customers 21,767,167 3.51 35,792,772 5.02
50 next largest customers 40,039,176 6.46 56,740,431 7.95
100 next largest customers 32,753,709 5.28 41,199,572 5.77
Other customers 525,252,851 84.75 579,765,585 81.26
Total (1) 619,812,903 100.00 713,498,360 100.00

(1) See reconciliation in Exhibit B.

| - 112 - | Delfín Jorge Ezequiel Carballo<br> Chairperson |

| --- | --- |

EXHIBIT D

CONSOLIDATED BREAKDOWNOF LOANS AND OTHER FINANCING BY TERMS AS OF DECEMBER 31, 2022

(Translation of the Financial Statements originally issued in Spanish – See Note 48)

(Figures stated in thousands of pesos in constant currency as of December 31, 2022)

Remaining terms to maturity
Item Matured 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
Non-financial government<br> sector 108 1,354,472 574,763 104,041 186,988 292,711 172,905 2,685,988
Financial sector 49,118 66,153 558,685 203,511 305,741 93,406 1,276,614
Non-financial<br> private sector and foreign residents 3,479,647 262,631,874 72,764,504 88,437,289 111,848,422 119,772,924 151,596,150 810,530,810
Total 3,479,755 264,035,464 73,405,420 89,100,015 112,238,921 120,371,376 151,862,461 814,493,412

CONSOLIDATED BREAKDOWNOF LOANS AND OTHER FINANCING BY TERMS AS OF DECEMBER 31, 2021

(Translation of the Financial Statements originally issued in Spanish – See Note 48)

(Figures stated in thousands of pesos in constant currency as of December 31, 2022)

Remaining terms to maturity
Item Matured 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
Non-financial government<br> sector 451,655 1,215,393 948,547 2,397,187 930,619 5,943,401
Financial sector 498,131 1,297,578 72,892 252,966 1,419,953 261,144 3,802,664
Non-financial<br> private sector and foreign residents 2,947,910 262,744,595 82,388,879 94,106,166 124,267,841 146,635,855 223,868,192 936,959,438
Total 2,947,910 263,694,381 84,901,850 95,127,605 126,917,994 148,986,427 224,129,336 946,705,503

This exhibit discloses the contractual future cash flows that include interest and charges to be accrued until maturity of the contracts.

| - 113 - | Delfín Jorge Ezequiel Carballo<br> Chairperson |

| --- | --- |

EXHIBIT E

CONSOLIDATED DETAILED INFORMATION ON INTERESTS INOTHER COMPANIESAS OF DECEMBER 31, 2022 AND 2021

(Translation of the Financial Statements originally issued in Spanish – See Note 48)

(Figures stated in thousands of pesos in constant currency as of December 31, 2022)

Information<br> of the issuer
Shares<br> of interest Data<br> from latest Financial Statements
Name Class Unit<br> <br><br> face<br><br> value Votes<br> <br><br> per <br><br> share Number Amount<br> <br><br> 12/31/2022 Amount<br> <br><br> 12/31/2021 Main<br> business<br><br> activity Year-<br><br> end date <br><br> period / <br><br> year Capital<br> <br><br> stock Shareholders'<br> <br><br> equity Income<br><br> for the<br><br> Period /<br><br> Year
In complementary services<br> companies
- Associates and joint ventures
Local
Uniones<br> Transitorias de Empresas (See Note 14.2 a) 642,743 530,143 Management of tax services
Play Digital<br> SA (See Note 14.1 b) Common 1 1 193,604,736 422,959 333,052 Electronic, technological and<br> computer services 09/30/22 2,152,921 3,874,339 (2,875,476 )
Finova<br> SA (See Note 14.2.b) Common 1 1 225,000 70,333 82,894 Informatics<br> services 09/30/22 450 42,658 (48,233 )
Subtotal<br> local 1,136,035 946,089
Total<br> in complementary services associates companies and joint ventures 1,136,035 946,089
Total<br> in complementary services companies 1,136,035 946,089
In other associates
- Associates and joint ventures
Local
Macro<br> Warrants S.A. (See Note 14.1 a) Common 1 1 50,000 5,564 7,431 Issue of warrants 09/30/22 1,000 111,278 (19,793 )
Subtotal<br> local 5,564 7,431
Total<br> in other associates  and joint ventures 5,564 7,431
Total<br> investments in other companies 1,141,599 953,520 
| - 114 - | Delfín Jorge Ezequiel Carballo<br> Chairperson |

| --- | --- |

EXHIBIT F

CONSOLIDATED CHANGE OFPROPERTY, PLANT AND EQUIPMENT AS OF DECEMBER 31, 2022

(Translation of the Financial Statements originally issued in Spanish – See Note 48)

(Figures stated in thousands of pesos in constant currency as of December 31, 2022)

**** Original **** **** **** **** **** **** **** Depreciation for the fiscal year Residual
Item value<br> at <br><br> beginning of<br><br> fiscal year Total life estimated in years Increases Decreases Transfers Difference for conversion Accumulated Transfers Decrease Difference for conversion For the fiscal year At the end value<br> at the<br><br> end of the<br><br> fiscal year
Cost
Real property 93,362,070 50 595,519 122,169 1,368,237 9,384,580 (78,527 ) 20,995 2,047,203 11,332,261 83,871,396
Furniture and facilities 12,879,168 10 413,627 1,654 1,491,837 (181 ) 6,344,990 4 549 (145 ) 1,149,876 7,494,176 7,288,621
Machinery and equipment 18,318,136 5 2,098,953 5,590 1,052,134 (179 ) 12,646,651 (1,535 ) 5,358 (457 ) 2,692,115 15,331,416 6,132,038
Vehicles 2,602,997 5 449,948 176,501 (9,208 ) 7,739 2,134,400 (699 ) 115,344 14 263,049 2,281,420 593,555
Other 1,739 3 (911 ) 828 (1,058 ) 558 328 500
Work in progress 3,089,819 2,709,731 (4,503,132 ) 1,296,418
Right of<br> use real property 7,353,968 5 867,251 96,195 (3,095 ) 4,104,964 59,692 (255 ) 1,395,703 5,440,720 2,681,209
Total<br> property, plant and equipment 137,607,897 7,135,029 402,109 (600,132 ) 3,373 34,616,413 (80,757 ) 201,938 (1,901 ) 7,548,504 41,880,321 101,863,737

CONSOLIDATED CHANGE OFPROPERTY, PLANT AND EQUIPMENT AS OF DECEMBER 31, 2021

(Translation of the Financial Statements originally issued in Spanish – See Note 48)

(Figures stated in thousands of pesos in constant currency as of December 31, 2022)

Original Depreciation for the fiscal year Residual
Item value<br> at <br><br> beginning<br><br> of fiscal<br><br> year Total life estimated in years Increases Decreases Transfers (1) Difference for conversion Accumulated Transfers (1) Decrease Difference for conversion For the fiscal year At the end value<br> at <br><br> the end of <br><br> the fiscal<br><br> year
Cost
Real property 89,603,312 50 581,468 170,251 3,347,541 7,337,992 191,404 21,520 1,876,704 9,384,580 83,977,490
Furniture and facilities 11,676,005 10 378,954 3,915 828,386 (262 ) 5,253,668 261 2,039 (218 ) 1,093,318 6,344,990 6,534,178
Machinery and equipment 16,148,014 5 1,244,554 59,966 987,034 (1,500 ) 10,158,717 (1,371 ) 9,007 (984 ) 2,499,296 12,646,651 5,671,485
Vehicles 2,508,068 5 250,176 161,513 6,266 2,052,788 348 142,235 223,499 2,134,400 468,597
Other 2,591 3 614 808 (658 ) 1,199 808 (354 ) 791 828 911
Work in progress 2,465,445 4,292,728 (3,668,354 ) 3,089,819
Right of<br> use real property 6,104,186 5 1,274,776 47,589 31,279 (8,684 ) 2,648,786 1,423 40,239 (2,628 ) 1,497,622 4,104,964 3,249,004
Total<br> property, plant and equipment 128,507,621 8,023,270 444,042 1,532,152 (11,104 ) 27,453,150 192,065 215,848 (4,184 ) 7,191,230 34,616,413 102,991,484
(1) During the fiscal year 2021, under<br> this item transfers were made to Non-current assets held for sale.
--- --- 
| - 115 - | Delfín Jorge Ezequiel Carballo<br> Chairperson |

| --- | --- |

EXHIBIT F

(Continued)

CONSOLIDATED CHANGE IN INVESTMENT PROPERTY
AS OF DECEMBER 31, 2022
(Translation<br> of the Financial Statements originally issued in Spanish – See Note 48)
(Figures<br> stated in thousands of pesos in constant currency as of December 31, 2022)
Original Value at Depreciation<br> for the fiscal year Residual value at
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Item beginning<br><br> of fiscal<br><br> year Useful life estimated in<br><br> years Increases Decreases Transfers<br><br> (1) Difference<br> <br><br> for <br><br> conversion Accumulated Transfers<br><br> (1) Decrease Difference for conversion For<br> the<br><br> fiscal <br><br> year At<br> the<br><br> end the<br> end of<br><br> the fiscal<br><br> year
Cost
Leased properties 449,989 50 1,156 (54,526 ) 16,256 38,437 5,268 59,961 336,658
Other investment properties 1,370,837 50 9,976,486 26,330 (2,688,777 ) (4) 110,434 (5,699 ) 2,297 176,486 278,924 8,353,288
Total investment property 1,820,826 9,977,642 26,330 (2,743,303 ) (4) 126,690 32,738 2,297 181,754 338,885 8,689,946
CONSOLIDATED CHANGE IN INVESTMENT PROPERTY
---
AS OF DECEMBER 31, 2021
(Translation<br> of the Financial Statements originally issued in Spanish – See Note 46)
(Figures<br> stated in thousands of pesos in constant currency as of December 31, 2022)
Original Value at Depreciation for the fiscal year Residual value at
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
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 the end of the fiscal year
Cost
Leased<br> properties 647,497 50 0 0 (197,508 ) 106,305 (96,629 ) 6,580 16,256 433,733
Other<br> investment properties 2,490,034 50 247,628 46,210 (1,320,485 ) (130 ) 149,274 (94,776 ) 7,571 63,507 110,434 1,260,403
Total investment property 3,137,531 247,628 46,210 (1,517,993 ) (130 ) 255,579 (191,405 ) 7,571 70,087 126,690 1,694,136
(1) During the fiscal year 2022, under this item transfers were made<br> to Non-current assets held for sale.
--- ---
- 116 - Delfín Jorge Ezequiel Carballo<br> Chairperson
--- ---

EXHIBIT G

CONSOLIDATEDCHANGE IN INTANGIBLE ASSETS

ASOF DECEMBER 31, 2022

(Translation of the Financial Statements originally issued in Spanish – See Note 48)

(Figures stated in thousands of pesos in constant currency as of December 31, 2022)

Original Value at Depreciation<br> for the fiscal year Residual value at
Item beginning<br> <br><br> of fiscal <br><br> year Useful life estimated in years Increases Decreases Transfers Accumulated Transfers Decrease For<br> the<br><br> fiscal year At<br> the end the end<br> of<br><br> the fiscal<br><br> year
Cost
Licenses 9,760,068 5 1,311,705 0 89,994 5,970,420 3,376 0 1,842,469 7,816,265 3,345,502
Other intangible<br> assets 31,680,407 5 7,299,511 33,558 (79,756 ) 19,099,090 (1,330 ) 1,314 5,675,900 24,772,346 14,094,258
Total<br> intangible assets 41,440,475 8,611,216 33,558 10,238 25,069,510 2,046 1,314 7,518,369 32,588,611 17,439,760
CONSOLIDATED CHANGE IN INTANGIBLE ASSETS
---
AS OF DECEMBER 31, 2021
(Translation<br> of the Financial Statements originally issued in Spanish – See Note 48)
(Figures<br> stated in thousands of pesos in constant currency as of December 31, 2022)
Original Value at Depreciation<br> for the fiscal year Residual value at
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Item beginning<br><br> of fiscal<br><br> year Useful life estimated in years Increases Decreases Transfers Accumulated Transfers Decrease For<br> the <br><br> fiscal year At<br> the end the end<br> of<br><br> the fiscal<br><br> year
Cost
Licenses 8,084,142 5 1,695,543 (19,617 ) 4,193,712 (660 ) 1,777,368 5,970,420 3,789,648
Other intangible<br> assets 25,374,163 5 6,306,426 182 14,257,429 43 4,841,704 19,099,090 12,581,317
Total<br> intangible assets 33,458,305 8,001,969 182 (19,617 ) 18,451,141 (660 ) 43 6,619,072 25,069,510 16,370,965
- 117 - Delfín Jorge Ezequiel Carballo<br> Chairperson
--- ---

EXHIBIT H

CONSOLIDATEDDEPOSIT CONCENTRATION

ASOF DECEMBER 31, 2022 AND 2021

(Translation of the Financial Statements originally issued in Spanish – See Note 48)

(Figures stated in thousands of pesos in constant currency as of December 31, 2022)

12/31/2022 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 153,647,145 11.86 89,303,162 7.79
50 next largest customers 131,918,351 10.18 68,803,839 6.00
100 next largest customers 61,561,487 4.75 43,712,679 3.81
Other customers 948,268,086 73.21 945,221,348 82.40
Total 1,295,395,069 100.00 1,147,041,028 100.00
- 118 - Delfín Jorge Ezequiel Carballo<br> Chairperson
--- ---

EXHIBIT I

CONSOLIDATEDBREAKDOWN OF FINANCIAL LIABILITIES

FORRESIDUAL TERMS

ASOF DECEMBER 31, 2022

(Translation of the Financial Statements originally issued in Spanish – See Note 48)

(Figures stated in thousands of pesos in constant currency as of December 31, 2022)

Remaining<br> terms to maturity
Item Up<br> to 1 month Over<br> 1 <br><br> month <br><br> and up to<br><br> 3 months Over<br> 3 <br><br> months <br><br> and up to <br><br> 6 months Over<br> 6 <br><br> months<br><br> and up to <br><br> 12 months Over<br> 12 <br><br> months<br><br> and up to <br><br> 24 months Over<br> 24<br><br> months Total
Deposits 1,186,832,473 113,538,635 19,753,491 1,902,154 12,295 36,840 1,322,075,888
From the<br> non-financial government sector 107,790,689 3,384,960 1,019,697 4,497 112,199,843
From the<br> financial sector 1,653,447 1,653,447
From the<br> non-financial private sector and foreign residents 1,077,388,337 110,153,675 18,733,794 1,897,657 12,295 36,840 1,208,222,598
Liabilities at fair value<br> through profit or loss 526,027 526,027
Derivative instruments 1,715 656 2,371
Other Financial Liabilities 130,773,020 426,282 387,072 736,506 1,225,622 2,830,997 136,379,499
Financing received from the<br> Central Bank of Argentina and other financial institutions 292,382 517,458 1,616,892 44,969 2,471,701
Issued corporate bonds 9,974 9,649 19,948 2,748,859 2,788,430
Subordinated corporate bonds 2,349,534 2,349,534 4,699,067 80,135,250 89,533,385
Total 1,318,425,617 114,493,005 24,116,638 5,053,111 8,685,843 83,003,087 1,553,777,301

This exhibit discloses contractual future cash flows that include interests and charges to be accrued until maturity of the contracts.

- 119 - Delfín Jorge Ezequiel Carballo<br> Chairperson

EXHIBIT I

CONSOLIDATEDBREAKDOWN OF FINANCIAL LIABILITIES

FORRESIDUAL TERMS

ASOF DECEMBER 31, 2021

(Translation of the Financial Statements originally issued in Spanish – See Note 48)

(Figures stated in thousands of pesos in constant currency as of December 31, 2022)

Remaining<br> terms to maturity
Item Up to 1<br> month Over 1<br><br> month <br><br> and 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 12<br><br> months Over 12<br><br> months <br><br> and up to 24<br><br> months Over 24<br><br> months Total
Deposits 1,040,999,187 101,780,527 12,548,302 1,071,555 84,281 2,462 1,156,486,314
From the non-financial government sector 104,125,831 4,116,058 2,304,904 5,076 110,551,869
From the financial sector 1,872,336 1,872,336
From the non-financial private sector<br> and foreign residents 935,001,020 97,664,469 10,243,398 1,066,479 84,281 2,462 1,044,062,109
Liabilities at fair value through profit or loss 3,170,711 3,170,711
Derivative instruments 4,933 4,933
Other Financial Liabilities 129,482,229 343,991 308,099 502,578 736,092 969,392 132,342,381
Financing received from the Central Bank of Argentina<br> and other financial institutions 458,364 356,378 26,334 16,203 11,150 868,429
Issued corporate bonds 6,120,392 6,120,392
Subordinated corporate bonds 2,657,150 2,657,152 5,314,305 95,941,472 106,570,079
Total 1,174,110,491 102,480,896 21,665,210 4,247,488 6,145,828 96,913,326 1,405,563,239

This exhibit discloses contractual future cash flows that include interests and charges to be accrued until maturity of the contracts.

- 120 - Delfín Jorge Ezequiel Carballo<br> Chairperson

EXHIBIT J

CONSOLIDATED CHANGES IN PROVISIONS

AS OF DECEMBER 31, 2022

(Translation of the Financial Statements originally issued in Spanish – See Note 48)

(Figures stated in thousands of pesos in constant currency as of December 31, 2022)

**** Amounts at****beginning of **** **** Decreases Monetary effects generated by **** **** ****
Item fiscal year Increases Reversals Charge off provisions **** 12/31/2022
Provisions<br> for eventual commitments 664,446 480,012 (447,691 ) 696,767
For<br> Administrative, disciplinary and criminal penalties 972 (472 ) 500
Other 2,532,257 2,627,844 1,785,245 (1,359,045 ) 2,015,811
Total Provisions 3,197,675 3,107,856 1,785,245 (1,807,208 ) 2,713,078
CONSOLIDATED CHANGES IN PROVISIONS
---
AS OF DECEMBER 31, 2021
(Translation of the Financial Statements originally issued in Spanish – See Note 48)
(Figures stated in thousands of pesos in constant currency as of December 31, 2022)
**** Amounts at beginning of **** **** Decreases Monetary effects generated by **** **** ****
--- --- --- --- --- --- --- --- --- --- --- --- --- ---
Item fiscal year Increases Reversals Charge off provisions **** 12/31/2021
Provisions for eventual<br> commitments 50,593 720,236 2,476 (103,907 ) 664,446
For Administrative, disciplinary<br> and criminal penalties 2,112 81,094 491 80,987 (756 ) 972
Other 3,782,909 2,836,625 2,923,633 (1,163,644 ) 2,532,257
Total Provisions 3,835,614 3,637,955 491 3,007,096 (1,268,307 ) 3,197,675 
| - 121 - | Delfín Jorge Ezequiel Carballo<br><br>Chairperson |

| --- | --- |

EXHIBIT L

CONSOLIDATED FOREIGN CURRENCY AMOUNTS
AS OF DECEMBER 31, 2022 AND 2021
(Translation of the Financial Statements originally issued in Spanish – See Note 48)
(Figures stated in thousands of pesos in constant currency as of December 31, 2022)
Item 12/31/2022 12/31/2021
--- --- --- --- --- --- --- --- --- --- --- --- ---
Total parent company and local Total per currency Total
branches US dollar Euro Real Other
Assets
Cash and deposits in banks 210,633,760 209,280,210 906,888 39,623 407,039 237,705,445
Debt securities at fair value through profit or loss 177,936,106 177,936,106 2,403,624
Other financial assets 15,674,298 15,673,799 499 11,667,552
Loans and other financing 35,940,193 35,940,193 29,871,080
From the non-financial private sector and foreign residents 35,940,193 35,940,193 29,871,080
Other debt securities 53,834,855 53,834,855 65,977,832
Financial assets delivered as guarantee 4,897,889 4,886,503 11,386 4,474,038
Equity Instruments at fair value through profit or loss 159,400 159,400 136,351
Total assets 499,076,501 497,711,066 918,773 39,623 407,039 352,235,922
Liabilities
Deposits 171,020,993 170,830,412 190,581 188,175,885
Non-financial government sector 6,163,095 6,163,095 14,953,269
Financial sector 1,399,299 1,399,299 1,481,552
Non-financial private sector and foreign residents 163,458,599 163,268,018 190,581 171,741,064
Liabilities at fair value through profit or loss 526,027 526,027 246,045
Other financial liabilities 16,098,638 15,901,667 175,733 21,238 12,676,197
Financing from Central Bank and other financial institutions 2,397,637 2,397,637 538,958
Issued corporate bonds 2,715,556 2,715,556
Subordinated corporate bonds 72,129,837 72,129,837 81,762,819
Other non-financial liabilities 54,067 54,067 78,773
Total liabilities 264,942,755 264,555,203 366,314 21,238 283,478,677 
| - 122 - | Delfín Jorge Ezequiel Carballo<br><br>Chairperson |

| --- | --- |

EXHIBIT N

CONSOLIDATED CREDIT ASSISTANCE TO RELATED PARTIES

AS OF DECEMBER 31, 2022 AND 2021

(Translation of the Financial Statements originally issued in Spanish – See Note 48)

(Figures stated in thousands of pesos in constant currency as of December 31, 2022)

In normal Troubled / Medium risk
Item situation Matured 12/31/2022 12/31/2021
Loans and other financing
Overdrafts 347,065 6 347,071 689,480
Without senior collateral or counter-collateral 347,065 6 347,071 689,480
Documents 55,596
With senior “A” collateral and counter-collateral 5,421
Without senior collateral or counter-collateral 50,175
Mortgage and pledge 514,164 514,164 449,150
With senior “B” collateral and counter-collateral 223,888 223,888 189,972
Without senior guarantees or counter-guarantees 290,276 290,276 259,178
Personal 3,100 3,100 3,497
Without senior collateral or counter-collateral 3,100 3,100 3,497
Credit cards 250,142 250,142 277,222
With senior “A” collateral and counter-collateral 310
Without senior collateral or counter-collateral 250,142 250,142 276,912
Other 3,634,566 3,634,566 7,364,545
With senior “A” collateral and counter-collateral 10,682
With senior “B” collateral and counter-collateral 56,412 56,412 44,935
Without senior collateral or counter-collateral 3,578,154 3,578,154 7,308,928
Total loans and other financial 4,749,037 6 4,749,043 8,839,490
Eventual commitments 8,805 8,805 267,598
Total 4,757,842 6 4,757,848 9,107,088
Allowances 55,954 4 55,958 127,562 
| - 123 - | Delfín Jorge Ezequiel Carballo<br><br>Chairperson |

| --- | --- |

EXHIBIT P

CONSOLIDATED CATEGORIES OF FINANCIAL ASSETS AND LIABILITIES

AS OF DECEMBER 31, 2022

(Translation of the Financial Statements originally issued in Spanish – See Note 48)

(Figures stated in thousands of pesos in constant currency as of December 31, 2022)

Fair value through P/L Fair value hierarchy
Item Amortized cost Fair value through OCI Obligatory measurement Level 1 Level 2 Level 3
Financial assets
Cash and deposits in banks
Cash 27,612,616
Financial institutions 222,464,359
Other 12,118
Debt securities at fair value through profit or loss 211,054,112 206,559,906 3,462,342 1,031,864
Derivative financial instruments 42,899 19,193 23,706
Repo transactions
BCRA 61,929,317
Other financial assets 53,436,257 4,508,266 4,458,851 49,415
Loans and other financing
To the<br> non-financial government sector 2,206,935
Other financial institutions<br> (1) 927,272
To the<br> non-financial private sector and foreign residents
Overdrafts 49,250,055
Documents 81,773,760
Mortgage loans 61,905,907
Pledge loans 9,581,277
Personal loans 142,529,651
Credit cards 190,779,144
Financial leases 1,386,801
Other (1) 58,260,228
Other debt securities 599,594,038 137,911,993 137,911,993
Financial<br> assets delivered as guarantee 30,620,278
Equity<br> Instruments at fair value through profit or loss 839,458 154,475 684,983
Total Financial Assets 1,594,270,013 137,911,993 216,444,735 349,104,418 3,486,048 1,766,262

(1) Includes totals provisions of sector.

| - 124 - | Delfín Jorge Ezequiel Carballo<br><br>Chairperson |

| --- | --- |

EXHIBIT P

(continued)

CONSOLIDATED CATEGORIES OF FINANCIAL ASSETS AND LIABILITIES

AS OF DECEMBER 31, 2022

(Translation of the Financial Statements originally issued in Spanish – See Note 48)

(Figures stated in thousands of pesos in constant currency as of December 31, 2022)

Fair value through P/L Fair value hierarchy
Item Amortized cost Fair value through OCI Obligatory measurement Level 1 Level 2 Level 3
Financial liabilities
Deposits
From<br> the non-financial government sector 109,952,253
From the<br> financial sector 1,653,447
From<br> the non-financial private sector and foreign residents
Checking<br> accounts 159,123,762
Savings<br> accounts 419,740,050
Time<br> deposits and Investment accounts 569,021,981
Other 35,903,576
Liabilities<br> at fair value through profit or loss 526,027 526,027
Derivative<br> financial instruments 2,371 2,371
Other financial liabilities 135,091,316
Financing<br> received from Central Bank and other financial institutions 2,449,342
Issued corporate bonds 2,715,556
Subordinated<br> corporate bonds 72,129,837
Total Financial Liabilities 1,507,781,120 528,398 528,398 
| - 125 - | Delfín Jorge Ezequiel Carballo<br><br>Chairperson |

| --- | --- | | | EXHIBIT P | | --- | --- | | CONSOLIDATED CATEGORIES OF FINANCIAL ASSETS AND LIABILITIES | | | AS OF DECEMBER 31, 2021 | | | (Translation of the Financial Statements originally issued in Spanish – See Note 48) | | | (Figures stated in thousands of pesos in constant currency as of December 31, 2022) | | | | | | | | Fair value<br> <br><br> through P/L | | Fair<br> value hierarchy | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | Item | Amortized<br> <br><br> cost | | Fair<br> value<br><br> through OCI | | Obligatory<br> <br><br> measurement | | Level<br> 1 | | Level<br> 2 | | Level<br> 3 | | | Financial assets | | | | | | | | | | | | | | Cash and deposits in banks | | | | | | | | | | | | | | Cash | | 51,862,712 | | | | | | | | | | | | Financial<br> institutions | | 283,816,883 | | | | | | | | | | | | Other | | 12,519 | | | | | | | | | | | | Debt securities at fair value<br> through profit or loss | | | | | | 63,125,824 | | 60,387,495 | | 562,970 | | 2,175,359 | | Derivative financial instruments | | | | | | 2,524 | | 771 | | 1,753 | | | | Repo transactions | | | | | | | | | | | | | | BCRA | | 61,176,357 | | | | | | | | | | | | Other financial assets | | 64,463,931 | | | | 4,033,290 | | 3,972,863 | | | | 60,427 | | Loans and other financing | | | | | | | | | | | | | | To the<br> non-financial government sector | | 4,628,306 | | | | | | | | | | | | Other<br> financial institutions (1) | | 2,941,876 | | | | | | | | | | | | To the<br> non-financial private sector and foreign residents | | | | | | | | | | | | | | Overdrafts | | 47,516,346 | | | | | | | | | | | | Documents | | 82,408,943 | | | | | | | | | | | | Mortgage<br> loans | | 81,213,071 | | | | | | | | | | | | Pledge<br> loans | | 14,727,607 | | | | | | | | | | | | Personal<br> loans | | 190,678,438 | | | | | | | | | | | | Credit<br> cards | | 184,981,594 | | | | | | | | | | | | Financial<br> leases | | 931,091 | | | | | | | | | | | | Other (1) | | 76,301,154 | | | | | | | | | | | | Other debt securities | | 46,838,533 | | 510,230,657 | | | | 283,454,369 | | 226,776,288 | | | | Financial assets delivered as<br> guarantee | | 34,993,147 | | | | | | | | | | | | Equity Instruments<br> at fair value through profit or loss | | | | | | 4,245,510 | | 131,468 | | | | 4,114,042 | | Total<br> Financial Assets | | 1,229,492,508 | | 510,230,657 | | 71,407,148 | | 347,946,966 | | 227,341,011 | | 6,349,828 | | (1) | Includes totals provisions of sector. | | --- | --- | | - 126 - | Delfín Jorge Ezequiel Carballo<br> Chairperson | | --- | --- | | | EXHIBIT P | | --- | --- | | | (continued) | | CONSOLIDATED CATEGORIES OF FINANCIAL ASSETS AND LIABILITIES | | | AS OF DECEMBER 31, 2021 | | | (Translation of the Financial Statements originally issued in Spanish – See Note 48) | | | (Figures stated in thousands of pesos in constant currency as of December 31, 2022) | | | | | | | | Fair value<br><br> through P/L | | Fair<br> value hierarchy | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | Item | Amortized<br><br> cost | | Fair<br> value<br><br> through OCI | | Obligatory<br><br> measurement | | Level<br> 1 | | Level<br> 2 | | Level<br> 3 | | Financial liabilities | | | | | | | | | | | | | Deposits | | | | | | | | | | | | | From the<br> non-financial government sector | | 109,868,280 | | | | | | | | | | | From the<br> financial sector | | 1,872,336 | | | | | | | | | | | From the<br> non-financial private sector and foreign residents | | | | | | | | | | | | | Checking<br> accounts | | 196,484,984 | | | | | | | | | | | Savings<br> accounts | | 360,846,573 | | | | | | | | | | | Time deposits<br> and Investment accounts | | 447,350,444 | | | | | | | | | | | Other | | 30,618,411 | | | | | | | | | | | Liabilities at fair value through<br> profit or loss | | | | 2,924,666 | | 246,045 | | 3,170,711 | | | | | Derivative financial instruments | | | | | | 4,933 | | | | 4,933 | | | Other financial liabilities | | 131,278,389 | | | | | | | | | | | Financing received from Central<br> Bank and other financial institutions | | 852,660 | | | | | | | | | | | Issued corporate bonds | | 5,825,893 | | | | | | | | | | | Subordinated<br> corporate bonds | | 81,762,819 | | | | | | | | | | | Total<br> Financial Liabilities | | 1,366,760,789 | | 2,924,666 | | 250,978 | | 3,170,711 | | 4,933 | | | - 127 - | Delfín Jorge Ezequiel Carballo<br> Chairperson | | --- | --- | | | EXHIBIT Q | | --- | --- | | CONSOLIDATED BREAKDOWN OF STATEMENT OF INCOME | | | AS OF DECEMBER 31, 2022 AND 2021 | | | (Translation of the Financial Statements originally issued in Spanish – See Note 48) | | | (Figures stated in thousands of pesos in constant currency as of December 31, 2022) | | | | Net financial Income/ (Loss) | | | | | | | --- | --- | --- | --- | --- | --- | --- | | | Mandatory measurement | | | | | | | Items | 12/31/2022 | | | 12/31/2021 | | | | For measurement of financial assets at fair value through profit or loss | | | | | | | | Gain from government securities | | 18,344,550 | | | 32,948,561 | | | Gain from private securities | | 19,736,146 | | | 2,421,027 | | | Gain from derivative financial instruments | | | | | | | | Forward transactions | | 752,927 | | | | | | Loss from other financial assets | | (26,383 | ) | | (28,188 | ) | | Gain from equity instruments at fair value through profit or loss | | 6,750,429 | | | 2,025,507 | | | Gain from sales or decreases of financial assets at fair value (1) | | 2,288,932 | | | 1,392,533 | | | For measurement of financial liabilities at fair value through profit or loss | | | | | | | | Loss from derivative financial instruments | | | | | | | | Forward transactions | | | | | (182,453 | ) | | Total | | 47,846,601 | | | 38,576,987 | |

(1) Net amount of reclassifications to profit of instruments classified at fair value through other comprehensive income that were derecognized or charged during the fiscal year.

- 128 - Delfín Jorge Ezequiel Carballo<br> Chairperson
EXHIBIT Q
---
(Continued)
CONSOLIDATED BREAKDOWN OF STATEMENT OF INCOME
---
AS OF DECEMBER 31, 2022 AND 2021
(Translation of the Financial Statements originally issued in Spanish – See Note 48)
(Figures stated in thousands of pesos in constant currency as of December 31, 2022)
Interest and adjustment for the application of the effective Net financial Income/(Loss)
--- --- --- --- --- --- ---
interest rate of financial assets measured at amortized cost 12/31/2022 12/31/2021
Interest income
for cash and bank deposits 400,119 25,671
for government securities 208,959,332 14,675,565
for debt securities 193,000 589,979
for loans and other financing
Non-financial public sector 1,513,955 3,536,708
Financial sector 535,913 1,316,785
Non-financial private sector
Overdrafts 25,399,566 15,724,087
Documents 25,583,152 18,258,697
Mortgage loans 37,615,857 29,769,779
Pledge loans 2,976,314 2,071,559
Personal loans 89,374,385 93,771,253
Credit cards 40,706,936 28,693,425
Financial leases 344,679 164,129
Other 26,952,978 30,183,129
for repo transactions
Central Bank of Argentina 12,635,845 16,524,973
Other financial institutions 648,984 102,614
Total 473,841,015 255,408,353
Interest expenses
for Deposits
Non-financial Private sector
Checking accounts (15,477,783 ) (2,563,967 )
Saving accounts (3,807,897 ) (2,409,161 )
Time deposits and investments accounts (280,598,419 ) (169,973,426 )
for Financing received from Central Bank of Argentina and other financial institutions (505,838 ) (304,567 )
for repo transactions
Other financial institutions (975,643 ) (573,796 )
for other financial liabilities (887,190 ) (47,111 )
for issued corporate bonds (259,358 ) (1,679,267 )
for other subordinated corporate bonds (4,628,154 ) (6,321,129 )
Total (307,140,282 ) (183,872,424 )
- 129 - Delfín Jorge Ezequiel Carballo<br> Chairperson
--- ---
EXHIBIT Q
--- ---
(Continued)
CONSOLIDATED BREAKDOWN OF STATEMENT OF INCOME
AS OF DECEMBER 31, 2022 AND 2021
(Translation of the Financial Statements originally issued in Spanish – See Note 48)
(Figures stated in thousands of pesos in constant currency as of December 31, 2022)
Interest and adjustment for the application of the effective interest rate of financial assets measured at fair value through Income for the<br><br> fiscal year Other <br><br>comprehensive<br><br> income Income for<br><br> the fiscal <br><br>year Other <br><br>comprehensive<br><br> income
--- --- --- --- --- --- --- --- --- ---
other comprehensive income 12/31/2022 12/31/2022 12/31/2021 12/31/2021
for debt government securities 138,624,359 (3,077,630 ) 183,718,162 965,318
Total 138,624,359 (3,077,630 ) 183,718,162 965,318
Income for the fiscal year
--- --- --- --- --- --- ---
Items 12/31/2022 12/31/2021
Commissions income
Commissions related to obligations 42,690,396 39,680,087
Commissions related to credits 439,719 332,156
Commissions related to loans commitments and financial guarantees 10,385 11,711
Commissions related to securities value 1,263,515 1,477,199
Commissions for credit cards 25,186,364 24,313,013
Commissions for insurances 4,226,128 4,450,781
Commissions related to trading and foreign exchange transactions 1,586,074 1,777,504
Total 75,402,581 72,042,451
Commissions expenses
Commissions related to trading with debt securities (66,660 ) (3,743 )
Commissions related to trading and foreign exchange transactions (249,774 ) (298,075 )
Other
Commissions paid ATM exchange (4,974,761 ) (4,611,640 )
Checkbooks commissions and clearing houses (1,385,594 ) (1,231,636 )
Credit cards and foreign trade commissions (736,806 ) (732,958 )
Total (7,413,595 ) (6,878,052 )
- 130 - Delfín Jorge Ezequiel Carballo<br> Chairperson
--- ---
EXHIBIT R
---

VALUE ADJUSTMENT FOR CREDIT LOSSES - CONSOLIDATED ALLOWANCES FOR UNCOLLECTIBILITY RISK AS OF DECEMBER 31, 2022

(Translation of the Financial Statements originally issued in Spanish – See Note 48)

(Figures stated in thousands of pesos in constant currency as of December 31, 2022)

Movements<br> between stages for the fiscal year
ECL<br> of remanent life of financial asset
Item Balances<br> at <br> beginning of the<br> fiscal year ECL<br> of the next <br><br> 12 months Financial<br> instruments <br><br> with a significant<br><br> increase in credit risk Financial<br><br> instruments with<br><br> impairment Monetary<br> effect<br><br> generated by provisions 12/31/2022
Other financial assets 51,518 83,398 (43,875 ) 91,041
Loans and other financing 18,761,240 2,366,876 (2,457,152 ) 1,334,983 (9,003,608 ) 11,002,339
Other financial institutions 7,111 4,355 (3,325 ) 8,141
To the non-financial private sector<br> and foreign residents
Overdrafts 1,379,806 262,728 4,475 (555,527 ) (564,614 ) 526,868
Documents 1,873,117 (31,027 ) (457,508 ) 19,672 (838,080 ) 566,174
Mortgage loans 3,892,318 283,428 (2,423,987 ) 853,110 (1,410,953 ) 1,193,916
Pledge loans 240,677 93,647 (17,479 ) (13,082 ) (114,124 ) 189,639
Personal loans 4,831,973 993,152 528,409 547,543 (2,753,411 ) 4,147,666
Credit cards 3,146,400 664,224 532,864 319,120 (1,896,823 ) 2,765,785
Financial leases 28,477 13,196 36 (4,696 ) (15,377 ) 21,636
Other 3,361,361 83,173 (623,962 ) 168,843 (1,406,901 ) 1,582,514
Eventual commitments 664,446 431,853 95,930 (495,462 ) 696,767
Other debt<br> securities 1,057 387 (648 ) 796
Total of allowances 19,478,261 2,882,514 (2,361,222 ) 1,334,983 (9,543,593 ) 11,790,943
VALUE ADJUSTMENT FOR CREDIT LOSSES - CONSOLIDATED ALLOWANCES FOR UNCOLLECTIBILITY RISK AS OF DECEMBER 31, 2021
---
(Translation of the Financial Statements originally issued in Spanish – See Note 48)
(Figures stated in thousands of pesos in constant currency as of December 31, 2022)
Movements<br> between stages for the fiscal year
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
ECL<br> of remanent life of financial asset
Item Balances at <br><br>beginning<br> of the<br> fiscal year ECL<br> of the next <br><br> 12 months Financial<br> instruments <br><br> with a significant<br><br> increase in credit risk Financial<br><br> instruments with<br><br> impairment Monetary<br> effect<br><br> generated by provisions 12/31/2021
Other financial assets 55,651 17,093 (21,226 ) 51,518
Loans and other financing 29,468,864 (4,744,489 ) 988,053 2,782,390 (9,733,578 ) 18,761,240
Other financial institutions 48,844 (30,322 ) (11,411 ) 7,111
To the non-financial private sector<br> and foreign residents
Overdrafts 2,016,222 237,488 133,387 (508,956 ) (498,335 ) 1,379,806
Documents 1,571,917 509,591 350,713 14,226 (573,330 ) 1,873,117
Mortgage loans 2,213,852 96,637 2,097,718 353,688 (869,577 ) 3,892,318
Pledge loans 395,013 (5,495 ) (77,549 ) 66,956 (138,248 ) 240,677
Personal loans 8,367,150 (1,610,244 ) (648,480 ) 2,110,841 (3,387,294 ) 4,831,973
Credit cards 9,964,072 (3,449,300 ) (1,518,902 ) 879,522 (2,728,992 ) 3,146,400
Financial leases 29,542 19,834 (8 ) (12,572 ) (8,319 ) 28,477
Other 4,862,252 (512,678 ) 651,174 (121,315 ) (1,518,072 ) 3,361,361
Eventual commitments 50,593 616,850 88,726 (91,723 ) 664,446
Other debts<br> securities 3,949 (2,108 ) (784 ) 1,057
Total of allowances 29,579,057 (4,112,654 ) 1,076,779 2,782,390 (9,847,311 ) 19,478,261 
| - 131 - | Delfín Jorge Ezequiel Carballo<br> Chairperson |

| --- | --- | | SEPARATE STATEMENT OF FINANCIAL POSITION | | --- | | AS OF DECEMBER 31, 2022 AND 2021 | | (Translation of the Financial Statements originally issued in Spanish – See Note 47) | | (Figures stated in thousands of pesos in constant currency as of December 31, 2022) | | Items | Notes | Exhibits | 12/31/2022 | | 12/31/2021 | | | --- | --- | --- | --- | --- | --- | --- | | ASSETS | | | | | | | | Cash and Deposits in Banks | 12 | P | | 240,012,345 | | 326,918,809 | | Cash | | | | 27,611,519 | | 51,860,984 | | Central Bank of Argentina | | | | 143,526,540 | | 207,729,609 | | Other Local and Foreign Entities | | | | 68,862,168 | | 67,315,697 | | Other | | | | 12,118 | | 12,519 | | Debt Securities at fair value through profit or loss | 12 | A and P | | 196,736,900 | | 55,120,422 | | Derivative Financial Instruments | 5 and 12 | P | | 42,899 | | 2,524 | | Repo transactions | 6 and 12 | P | | 61,929,317 | | 61,176,357 | | Other Financial Assets | 7, 9 and 12 | P and R | | 43,260,905 | | 50,807,274 | | Loans and other financing | 8, 9 and 12 | B, C, D, P and R | | 598,375,914 | | 687,818,816 | | Non-financial Public Sector | | | | 2,206,935 | | 4,628,306 | | Other Financial Entities | | | | 927,336 | | 2,941,876 | | Non-financial Private Sector and Foreign Residents | | | | 595,241,643 | | 680,248,634 | | Other Debt Securities | 9 and 12 | A, P and R | | 729,460,768 | | 548,213,850 | | Financial Assets delivered as guarantee | 10, 12 and 35 | P | | 30,096,021 | | 34,470,761 | | Current Income Tax Assets | 25 | | | | | 1,058,582 | | Equity Instruments at fair value through profit or loss | 11 and 12 | A and P | | 705,940 | | 4,138,309 | | Investment in subsidiaries, associates and joint arrangements | 14 | E | | 17,801,251 | | 14,508,928 | | Property, plant and equipment | | F | | 101,790,787 | | 102,899,584 | | Intangible Assets | | G | | 17,322,741 | | 16,322,215 | | Other Non-financial Assets | 15 | | | 11,493,906 | | 3,604,843 | | Non-current Assets held for sale | | | | 8,856,247 | | 6,314,263 | | TOTAL ASSETS | | | | 2,057,885,941 | | 1,913,375,537 |

| - 132 - | Delfín Jorge Ezequiel Carballo<br> Chairperson |

| --- | --- | | SEPARATE STATEMENT OF FINANCIAL POSITION | | --- | | AS OF DECEMBER 31, 2022 AND 2021 | | (Translation of the Financial Statements originally issued in Spanish – See Note 47) | | (Figures stated in thousands of pesos in constant currency as of December 31, 2022) | | Items | Notes | Exhibits | 12/31/2022 | | 12/31/2021 | | | | --- | --- | --- | --- | --- | --- | --- | --- | | LIABILITIES | | | | | | | | | Deposits | 12 and 17 | H, I and P | | 1,287,889,944 | | 1,139,660,478 | | | Non-financial Public Sector | | | | 109,952,253 | | 109,868,280 | | | Financial Sector | | | | 1,653,447 | | 1,872,336 | | | Non-financial Private Sector and Foreign Residents | | | | 1,176,284,244 | | 1,027,919,862 | | | Derivative Financial Instruments | 5 and 12 | I and P | | 2,371 | | 4,933 | | | Other Financial Liabilities | 12 and 18 | I and P | | 114,905,708 | | 114,974,304 | | | Financing received from the Central Bank of Argentina and other financial institutions | 12 | I and P | | 2,448,871 | | 852,127 | | | Issued Corporate Bonds | 12 and 40 | I and P | | 3,003,738 | | 5,825,893 | | | Current Income Tax Liabilities | 25 | | | 8,955,866 | | | | | Subordinated Corporate Bonds | 12 and 40 | I and P | | 72,274,386 | | 81,844,664 | | | Provisions | 20 | J and  R | | 2,702,835 | | 3,181,778 | | | Deferred Income Tax Liabilities | 25 | | | 13,220,625 | | 11,087,721 | | | Other Non-financial Liabilities | 21 | | | 40,071,288 | | 91,228,423 | | | TOTAL LIABILITIES | | | | 1,545,475,632 | | 1,448,660,321 | | | SHAREHOLDERS’ EQUITY | | | | | | | | | Capital Stock | 33 | K | | 639,413 | | 639,413 | | | Non-capital contributions | | | | 12,429,781 | | 12,429,781 | | | Adjustments to Shareholders’ Equity | | | | 173,290,106 | | 173,290,106 | | | Earnings Reserved | | | | 282,844,496 | | 237,309,036 | | | Unappropriated Retained Earnings | | | | 136,606 | | (17,376,187 | ) | | Accumulated Other Comprehensive Income | | | | 31,388 | | 5,590,301 | | | Net Income of the fiscal year | | | | 43,038,519 | | 52,832,766 | | | TOTAL SHAREHOLDERS’ EQUITY | | | | 512,410,309 | | 464,715,216 | | | TOTAL SHAREHOLDERS’ EQUITY AND LIABILITIES | | | | 2,057,885,941 | | 1,913,375,537 | |

Notes 1 to 47 to the separate Financial Statements and exhibits A to L and N to R are an integral part of the separate Financial Statements.

| - 133 - | Delfín Jorge Ezequiel Carballo<br> Chairperson |

| --- | --- | | SEPARATE STATEMENT OF INCOME | | --- | | FOR THE FISCAL YEARS ENDED DECEMBER 31, 2022 AND 2021 | | (Translation of the Financial Statements originally issued in Spanish – See Note 47) | | (Figures stated in thousands of pesos in constant currency as of December 31, 2022) | | Items | Notes | Exhibits | 12/31/2022 | | | 12/31/2021 | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | Interest income | | Q | | 611,905,338 | | | 438,561,466 | | | Interest expense | | Q | | (306,346,909 | ) | | (183,875,297 | ) | | Net Interest Income | | | | 305,558,429 | | | 254,686,169 | | | Commissions income | 26 | Q | | 74,621,355 | | | 71,079,473 | | | Commissions expense | | Q | | (6,145,536 | ) | | (6,188,314 | ) | | Net Commissions Income | | | | 68,475,819 | | | 64,891,159 | | | Subtotal (Net Interest income plus Net Commissions income) | | | | 374,034,248 | | | 319,577,328 | | | Net gain from measurement of financial instruments at fair value through profit or loss | | Q | | 38,144,496 | | | 36,866,081 | | | Profit from sold or derecognized assets at amortized cost | | | | 169,626 | | | 475,397 | | | Differences in quoted prices of gold and foreign currency | 27 | | | 61,215,523 | | | 8,680,673 | | | Other operating income | 28 | | | 16,923,844 | | | 11,600,300 | | | Allowances for loan losses | | | | (6,545,768 | ) | | (4,778,374 | ) | | Net Operating Income | | | | 483,941,969 | | | 372,421,405 | | | Employee benefits | 29 | | | (76,055,967 | ) | | (75,650,690 | ) | | Administrative expenses | 30 | | | (38,050,082 | ) | | (38,555,910 | ) | | Depreciation and amortization of fixed assets | | F and G | | (15,029,187 | ) | | (13,775,377 | ) | | Other operating expenses | 31 | | | (73,666,969 | ) | | (66,125,358 | ) | | Operating Income | | | | 281,139,764 | | | 178,314,070 | | | Income from subsidiaries, associates and joint arrangements | 14 | | | 3,662,118 | | | 1,712,719 | | | Loss on net monetary position | | | | (225,363,008 | ) | | (125,179,198 | ) | | Income before tax on continuing operations | | | | 59,438,874 | | | 54,847,591 | | | Income tax on continuing operations | 25 | | | (16,400,355 | ) | | (2,014,825 | ) | | Net Income from continuing operations | | | | 43,038,519 | | | 52,832,766 | | | Net Income for the fiscal year | | | | 43,038,519 | | | 52,832,766 | |

| - 134 - | Delfín Jorge Ezequiel Carballo<br> Chairperson |

| --- | --- | | SEPARATE EARNINGS PER SHARE | | --- | | FOR THE FISCAL YEARS ENDED DECEMBER 31, 2022 AND 2021 | | (Translation of the Financial Statements originally issued in Spanish – See Note 47) | | (Figures stated in thousands of pesos in constant currency as of December 31, 2022) | | Items | 12/31/2022 | | 12/31/2021 | | | --- | --- | --- | --- | --- | | Net Profit attributable to Parent’s shareholders | | 43,038,519 | | 52,832,766 | | Plus: Potential diluted earnings per common share | | | | | | Net Profit attributable to Parent’s shareholders adjusted as per diluted earnings | | 43,038,519 | | 52,832,766 | | Weighted average of outstanding common shares for the fiscal year | | 639,413 | | 639,413 | | Plus: Weighted average of the number of additional common shares with dilution effects | | | | | | Weighted average of outstanding common shares for the fiscal year adjusted as per dilution effect | | 639,413 | | 639,413 | | Basic earnings per share (in pesos) | | 67.3094 | | 82.6270 |

| - 135 - | Delfín Jorge Ezequiel Carballo<br> Chairperson |

| --- | --- | | SEPARATE STATEMENT OF OTHER COMPREHENSIVE INCOME | | --- | | FOR THE FISCAL YEARS ENDED DECEMBER 31, 2022 AND 2021 | | (Translation of the Financial Statements originally issued in Spanish – See Note 47) | | (Figures stated in thousands of pesos in constant currency as of December 31, 2022) | | Items | Notes | Exhibits | 12/31/2022 | | | 12/31/2021 | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | Net Income for the fiscal year | | | | 43,038,519 | | | 52,832,766 | | | Items of Other Comprehensive Income that will be reclassified to profit or loss | | | | | | | | | | Foreign currency translation differences in Financial Statements conversion | | | | (718,989 | ) | | (1,492,767 | ) | | Foreign currency translation differences for the fiscal year | | | | (718,989 | ) | | (1,492,767 | ) | | Profit or loss from financial instruments measured at fair value through other comprehensive income (FVOCI) (IFRS 9(4.1.2)(a)) | | | | (4,542,436 | ) | | 4,126,249 | | | Profit or loss for the period from financial instruments at fair value through other comprehensive income (FVOCI) | | Q | | (2,780,142 | ) | | 1,312,537 | | | Adjustment for reclassification for the fiscal year | | | | (4,208,221 | ) | | 5,164,359 | | | Income tax | 25.b) | | | 2,445,927 | | | (2,350,647 | ) | | Interest in Other Comprehensive Income of associates and joint ventures accounted for using the participation method | | | | (297,488 | ) | | (347,219 | ) | | Loss for the fiscal year from interest in Other Comprehensive Income of associates and joint ventures accounted for using the participation method | | | | (297,488 | ) | | (347,219 | ) | | Total Other Comprehensive (Loss) / Income that will be reclassified to profit or loss | | | | (5,558,913 | ) | | 2,286,263 | | | Total Other Comprehensive (Loss) / Income | | | | (5,558,913 | ) | | 2,286,263 | | | Total Comprehensive Income for the fiscal year | | | | 37,479,606 | | | 55,119,029 | |

Notes 1 to 47 to the separate Financial Statements and exhibits A to L and N to R are an integral part of the separate Financial Statements.

| - 136 - | Delfín Jorge Ezequiel Carballo<br> Chairperson |

| --- | --- | | SEPARATE STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY | | --- | | FOR THE FISCAL YEARS ENDED DECEMBER 31, 2022 | | (Translation of the Financial Statements originally issued in Spanish – See Note 47) | | (Figures stated in thousands of pesos in constant currency as of December 31, 2022) | | **** | **** | Capital stock | Non-capital Contributions | **** | Other Comprehensive Income | | | **** | Earnings Reserved | | **** | **** | **** | **** | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | Changes | Notes | Outstanding shares | Additional paid-in capital | Adjustments to Shareholders’ Equity | Accumulated foreign currency translation difference in Financial Statements conversion | **** | Other | **** | Legal | Other | Unappropriated Retained Earnings | **** | Total Equity | **** | | Restated amount at the beginning<br> for the fiscal year | | 639,413 | 12,429,781 | 173,290,106 | 1,169,053 | | 4,421,248 | | 94,354,253 | 142,954,783 | 35,456,579 | | 464,715,216 | | | Total comprehensive income for<br> the fiscal year | | | | | | | | | | | | | | | | - Net income for the fiscal year | | | | | | | | | | | 43,038,519 | | 43,038,519 | | | - Other comprehensive loss for<br> the fiscal year | | | | | (718,989 | ) | (4,839,924 | ) | | | | | (5,558,913 | ) | | Distribution of unappropriated<br> retained earnings as approved by Shareholders´ Meeting held on April 29, 2022 | | | | | | | | | | | | | | | | Legal reserve | | | | | | | | | 7,091,317 | | (7,091,317 | ) | | | | Reserve for dividends pending<br> authorization from the BCRA | (1) | | | | | | | | | 38,444,143 | (27,637,010 | ) | 10,807,133 | | | Personal<br> property tax on business corporation | | | | | | | | | | | (591,646 | ) | (591,646 | ) | | Amount<br> at the end of the fiscal year | | 639,413 | 12,429,781 | 173,290,106 | 450,064 | | (418,676 | ) | 101,445,570 | 181,398,926 | 43,175,125 | | 512,410,309 | | | (1) | See<br> note 34 to the consolidated Financial Statements. | | --- | --- | | SEPARATE STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY | | --- | | FOR THE FISCAL YEARS ENDED DECEMBER 31, 2021 | | (Translation of the Financial Statements originally issued in Spanish – See Note 47) | | (Figures stated in thousands of pesos in constant currency as of December 31, 2022) | | **** | **** | Capital stock | Non-capital Contributions | **** | Other Comprehensive Income | | | Earnings Reserved | | **** | **** | **** | **** | **** | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | Changes | Notes | Outstanding shares | Additional paid-in capital | Adjustments to Shareholders’ Equity | Accumulated foreign currency translation difference in Financial Statements conversion | **** | Other | Legal | Other | **** | UnappropriatedRetainedEarnings | **** | Total Equity | **** | | Restated amount at<br> the beginning of the fiscal year | | 639,413 | 12,429,781 | 173,290,106 | 2,661,820 | | 642,218 | 94,354,253 | 228,532,620 | | (77,162,594 | ) | 435,387,617 | | | Total comprehensive income for<br> the fiscal year | | | | | | | | | | | | | | | | - Net income for the fiscal year | | | | | | | | | | | 52,832,766 | | 52,832,766 | | | - Other comprehensive loss for<br> the fiscal year | | | | | (1,492,767 | ) | 3,779,030 | | | | | | 2,286,263 | | | Distribution of unappropriated<br> retained earnings as approved by Shareholders´ Meeting held on April 30, 2021 | | | | | | | | | | | | | | | | - Dividends | | | | | | | | | (25,011,252 | ) | | | (25,011,252 | ) | | - Absorption of loss accumulated | | | | | | | | | | | | | | | | Facultative reserve | | | | | | | | | (1,300 | ) | 1,300 | | | | | Facultative reserve for future<br> distribution of earnings | | | | | | | | | (59,785,107 | ) | 59,785,107 | | | | | Personal<br> property tax on business corporation | | | | | | | | | (780,178 | ) | | | (780,178 | ) | | Amount<br> at the end of the fiscal year | | 639,413 | 12,429,781 | 173,290,106 | 1,169,053 | | 4,421,248 | 94,354,253 | 142,954,783 | | 35,456,579 | | 464,715,216 | |

Notes 1 to 47 to the separate Financial Statements and exhibits A to L and N to R are an integral part of the separate Financial Statements.

| - 137 - | Delfín Jorge Ezequiel Carballo<br> Chairperson |

| --- | --- | | SEPARATE STATEMENT OF CASH FLOWS | | --- | | FOR THE FISCAL YEARS ENDED DECEMBER 31, 2022 AND 2021 | | (Translation of the Financial Statements originally issued in Spanish – See Note 47) | | (Figures stated in thousands of pesos in constant currency as of December 31, 2022) | | Items | Notes | 12/31/2022 | | | 12/31/2021 | | | | --- | --- | --- | --- | --- | --- | --- | --- | | Cash flows from operating activities | | | | | | | | | Income for the fiscal year before income tax | | | 59,438,874 | | | 54,847,591 | | | Adjustment for the total monetary effect of the fiscal year | | | 225,363,008 | | | 125,179,198 | | | Adjustments to obtain cash flows from operating activities: | | | | | | | | | Amortization and depreciation | | | 15,029,187 | | | 13,775,377 | | | Allowance for loan losses | | | 6,545,768 | | | 4,778,374 | | | Difference in quoted prices of foreign currency | | | (80,777,733 | ) | | (32,030,051 | ) | | Other adjustments | | | 138,432,659 | | | 81,898,784 | | | Net increase / (decrease) from operating assets: | | | | | | | | | Debt Securities at fair value through profit or loss | | | (141,625,945 | ) | | 101,270,330 | | | Derivative Financial Instruments | | | (40,375 | ) | | 18,739 | | | Repo transactions | | | (752,960 | ) | | 56,989,218 | | | Loans and other financing | | | | | | | | | Non-financial Public Sector | | | 2,421,371 | | | 6,000,091 | | | Other Financial Entities | | | 2,014,540 | | | 2,417,129 | | | Non-financial Private Sector and Foreign Residents | | | 78,381,162 | | | 54,231,891 | | | Other debt securities | | | 44,857,900 | | | (67,324,262 | ) | | Financial Assets delivered as guarantee | | | 4,374,740 | | | 7,312,975 | | | Equity instruments at fair value through profit or loss | | | 3,432,369 | | | 750,988 | | | Other assets | | | 3,942,453 | | | (4,372,006 | ) | | Net increase / (decrease) from operating liabilities: | | | | | | | | | Deposits | | | | | | | | | Non-financial Public Sector | | | 83,973 | | | (106,431,724 | ) | | Financial Sector | | | (218,889 | ) | | (175,291 | ) | | Non-financial Private Sector and Foreign Residents | | | 148,364,382 | | | (180,045,129 | ) | | Derivative financial instruments | | | (2,562 | ) | | 4,256 | | | Repo transactions | | | | | | (1,818,749 | ) | | Other liabilities | | | 873,589 | | | 16,950,335 | | | Income Tax Payments | | | (1,691,713 | ) | | (20,759,005 | ) | | Total cash from operating activities (A) | | | 508,445,798 | | | 113,469,059 | |

| - 138 - | Delfín Jorge Ezequiel Carballo<br> Chairperson |

| --- | --- | | SEPARATE STATEMENT OF CASH FLOWS | | --- | | FOR THE FISCAL YEARS ENDED DECEMBER 31, 2022 AND 2021 | | (Translation of the Financial Statements originally issued in Spanish – See Note 47) | | (Figures stated in thousands of pesos in constant currency as of December 31, 2022) | | Items | Notes | | 12/31/2022 | | | 12/31/2021 | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | Cash flows from investing activities | | | | | | | | | | Payments: | | | | | | | | | | Acquisition of PPE, intangible assets and other assets | | | | (24,136,113 | ) | | (13,109,399 | ) | | Other paymenyts related investing activities | | | | (44,708 | ) | | | | | Control obtained in subsidiaries and other businesses | | | | | | | (69,450 | ) | | Total cash used in investing activities (B) | | | | (24,180,821 | ) | | (13,178,849 | ) | | Cash flows from financing activities | | | | | | | | | | Payments: | | | | | | | | | | Dividends | | | | (19,094,765 | ) | | | | | Non-subordinated corporate bonds | | | | (4,743,590 | ) | | (7,966,533 | ) | | Financing to local financial entities | | | | | | | (1,546,932 | ) | | Subordinated corporate bonds | | | | (4,529,710 | ) | | (5,789,146 | ) | | Other payments related to financing activities | | | | (1,025,341 | ) | | (1,496,919 | ) | | Collections/Incomes: | | | | | | | | | | Non Subordinated Corporate Bonds | | | | 2,949,563 | | | 1,284,763 | | | Financing to local financial entities | | | | 1,954,046 | | | | | | Total cash used in financing activities (C) | | | | (24,489,797 | ) | | (15,514,767 | ) | | Effect of exchange rate fluctuations (D) | | | | 122,479,673 | | | 51,233,842 | | | Monetary effect on cash and cash equivalents (E) | | | | (436,667,170 | ) | | (265,050,077 | ) | | Net increase/ (decrease) in cash and cash equivalents (A+B+C+D+E) | | | | 145,587,683 | | | (129,040,792 | ) | | Restated Cash and cash equivalents at the beginning of the fiscal year | | 32 | | 585,946,233 | | | 714,987,025 | | | Cash and cash equivalents at the end of the fiscal year | | 32 | | 731,533,916 | | | 585,946,233 | |

Notes 1 to 47 to the separate Financial Statements and exhibits A to L and N to R are an integral part of the separate Financial Statements.

| - 139 - | Delfín Jorge Ezequiel Carballo<br> Chairperson |

| --- | --- |

NOTES TO THE SEPARATE FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2022

(Translation of Financial Statements originally issued in Spanish – See Note 47)

(Figures stated in thousands of pesos in constant currency)

1. CORPORATE INFORMATION

Banco Macro SA (hereinafter, the “Bank”) is a business corporation (sociedad anónima) organized in the 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 SAU, Macro Fiducia SAU, Macro Fondos SGFCISA, Argenpay SAU and Fintech SGR.

Macro Compañía Financiera SA was created in 1977 as a non-banking financial institution. In May 1988, it received the authorization to operate as a commercial bank and was incorporated as Banco Macro SA. Subsequently, as a result of the merger process with other entities, it adopted other names (among them, Banco Macro Bansud SA) and since August 2006, Banco Macro SA.

The Bank’s shares are publicly listed on Bolsas y Mercados Argentinos (BYMA) since November 1994 and as from March 24, 2006, they are listed on the New York Stock Exchange (NYSE). Additionally, on October 15, 2015 they were authorized to be listed on the Mercado Abierto Electrónico SA (MAE).

Since 1994, Banco Macro SA’s market strategy has mainly focused on the regional areas outside the Autonomous City of Buenos Aires (CABA, for its acronym in Spanish). Following this strategy, in 1996, Banco Macro SA started the process to acquire entities and assets and liabilities during the privatization of provincial and other banks.

In 2001, 2004, 2006 and 2010, the Bank acquired the control of Banco Bansud SA, Nuevo Banco Suquía SA, Nuevo Banco Bisel SA and Banco Privado de Inversiones SA, respectively. Such entities merged with and into Banco Macro SA in December 2003, October 2007, August 2009 and December 2013, respectively. 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 July 21 and January 17, 2022, the Bank made irrevocable capital contributions in Play Digital SA for 245,539 and 130,758 (not restated). On October 4, 2022, the Bank sold 22,112,340 shares for an amount of 61,889. As a consequence, the Bank’s new interest in this company is 8.9927%. See note 1 to the consolidated 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 is explained in note 3 under “Basis for consolidation” to the consolidated Financial Statements, Fintech SGR is a structured entity in which the Bank has control. See note 1 to the consolidated 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 consolidated Financial Statements.

On February 23, 2023, the Board of Directors approved the issuance of these separate Financial Statements. Even when the Shareholders’ Meeting has the power to amend these separate Financial Statements after issuance, in Management’s opinion it will not happen.

2. OPERATIONS OF THE BANK

Note 2 to the consolidated Financial Statements includes a detailed description of the agreements that relate the Bank with the Provincial and Municipal governments.

- 140 -

NOTES TO THE SEPARATE FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2022

(Translation of Financial Statements originally issued in Spanish – See Note 47)

(Figures stated in thousands of pesos in constant currency)

3. BASIS FOR THE PREPARATION OF THESE FINANCIAL STATEMENTS AND APPLICABLE ACCOUNTING STANDARDS

Applicable Accounting Standards

These separate 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 separate 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 separate Financial Statements,<br>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 specific guidelines related to measure such<br>holding. Taking into account such guidelines, the Bank adjusted its fair value previously determined (see note 11). In 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 previously mentioned, IFRS had been applied, the profit or loss for the previous<br>fiscal years and for the fiscal year ended December 31, 2022, should have been modified. However, this situation does not generate<br>differences in the shareholders’ equity as of December 31, 2022.
--- ---

Applicable Accounting Standards

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 annual separate Financial Statements in accordance with the IFRS as adopted by the BCRA through Communiqué “A” 7642. Generally, the BCRA does not allow the anticipated application of any IFRS, unless otherwise expressly stated.

Note 3 to the consolidated Financial Statements, presents further detailed descriptions of the basis for the presentation of such Financial Statements and the main accounting policies used and the relevant information of the subsidiaries. All that is explained therein shall apply to these separate Financial Statements, except for the goodwill generated by the business combination, as mentioned in note 13, which according to BCRA Communiqué “A” 6618, in the separate 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 separate 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.

- 141 -

NOTES TO THE SEPARATE FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2022

(Translation of Financial Statements originally issued in Spanish – See Note 47)

(Figures stated in thousands of pesos in constant currency)

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 separate statement of income. Ownership interest in other comprehensive income of subsidiaries is accounted for under “Income / (loss) for the fiscal year from interest in other comprehensive income of subsidiaries, associates and joint ventures accounted for using the participation method”, in the separate statement of other comprehensive income.

Transcription into books

As of the date of issuance of these separate Financial Statements, the analytical detail is in the process of being transcribed into the Bank’s inventory book (“Libro Inventario”), general ledger and the separate Financial Statements into the Bank’s balance book (“Libro Balances”) of Banco Macro SA.

New standards adopted

New standards adopted are described in note 3 to the consolidated Financial Statements.

New pronouncements

New pronouncements are described in note 3 to the consolidated 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 December 31, 2022 and 2021, the Bank maintains the following maximum exposures to credit risk related to this type of transactions:

Composition 12/31/2022 12/31/2021
Undrawn commitments of credit cards and checking accounts 668,911,187 432,278,523
Guarantees granted (1) 5,193,158 3,624,788
Overdraft and unused agreed commitments (1) 613,294 1,699,653
Subtotal 674,717,639 437,602,964
Less: Allowance for Expected credit losses (ECL) (686,524 ) (648,549 )
Total 674,031,115 436,954,415
(1) Includes transactions not covered by BCRA debtor classification standard. The Guarantees granted include<br>an amount of 36,911 and 50,826 as of December 31, 2022 and 2021, respectively. The Overdraft and unused agreed commitments include<br>an amount of 453,507 and 187,409 as of December 31, 2022 and 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, as described in note 45 to the consolidated Financial Statements

- 142 -

NOTES TO THE SEPARATE FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2022

(Translation of Financial Statements originally issued in Spanish – See Note 47)

(Figures stated in thousands of pesos in constant currency)

5. DERIVATIVE FINANCIAL INSTRUMENTS

The Bank performs derivative transactions for trading purposes. In note 5 to the consolidated Financial Statements, the Bank discloses the reasons, types of derivative financial transactions performed by the Bank, the notional value and the fair value of the financial instruments recognized as assets or liabilities in the statement of financial position.

6. REPO TRANSACTIONS

Repo transactions performed by the Bank are detailed in note 6 to the consolidated Financial Statements.

7. OTHER FINANCIAL ASSETS

The composition of the other financial assets as of December 31, 2022 and 2021 is as follows:

Composition 12/31/2022 12/31/2021
Sundry debtors (see note 11) 26,697,667 19,283,304
Receivables from spot sales of foreign currency pending settlement 16,002,229 30,130,171
Receivables from spot sales of government securities pending settlement 219,987 176,965
Private securities 49,415 60,427
Other 382,648 1,207,925
Subtotal 43,351,946 50,858,792
Less: Allowances for ECL (91,041 ) (51,518 )
Total 43,260,905 50,807,274

Disclosures related to allowance for ECL are detailed in note 9 “Loss allowance for expected credit losses on credit exposures not measured at fair value through profit or loss”.

8. LOANS AND OTHER FINANCING

The composition of loans and other financing as of December 31, 2022 and 2021 is as follows:

Composition 12/31/2022 12/31/2021
Non-financial Public sector (1) 2,206,935 4,628,306
Other Financial Entities 927,336 2,941,876
Other Financial Entities 935,477 2,948,987
Less: allowance for ECL (8,141 ) (7,111 )
Non-financial Private Sector and Foreign Residents 595,241,643 680,248,634
Overdrafts 49,233,372 47,465,357
Documents 81,100,874 82,408,943
Mortgage loans 61,905,907 81,213,071
Pledge loans 9,581,277 14,727,607
Personal loans 142,529,651 190,678,438
Credit cards 190,779,144 184,981,594
Financial leases 1,386,801 931,091
Other 69,706,352 96,594,839
Less: allowance for ECL (10,981,735 ) (18,752,306 )
Total 598,375,914 687,818,816 
- 143 -

NOTES TO THE SEPARATE FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2022

(Translation of Financial Statements originally issued in Spanish – See Note 47)

(Figures stated in thousands of pesos in constant currency)

(1) As explained in note 3, ECL are not calculated to public sector exposures.

9. LOSS ALLOWANCE FOR EXPECTED CREDIT LOSSES ON CREDIT EXPOSURES NOT MEASURED AT FAIR VALUE THROUGH PROFITOR LOSS

Note 9 to the consolidated 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.

10. FINANCIAL ASSETS DELIVERED AS GUARANTEE

The composition of financial assets delivered as guarantee as of December 31, 2022 and 2021 is as follows:

Carrying amount
Composition 12/31/2022 12/31/2021
For transactions with the BCRA 24,824,547 30,242,005
For guarantee deposits 5,271,474 4,228,756
Total 30,096,021 34,470,761

The Bank’s Management considers there shall be no losses due to the restrictions on the above listed financial assets.

11. 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 December 31, 2022 and 2021, is detailed in Exhibit A. For the Bank’s investment in Prisma Medios de Pago SA see also note 11 to the consolidated Financial Statements.

12. FAIR VALUE QUANTITATIVE AND QUALITATIVE DISCLOSURES

Note 12 to the consolidated 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 separate 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. 
- 144 -

NOTES TO THE SEPARATE FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2022

(Translation of Financial Statements originally issued in Spanish – See Note 47)

(Figures stated in thousands of pesos in constant currency)

- 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.
--- ---

Exhibit P “Categories of Financial Assets and Liabilities” presents the hierarchy in the Bank’s financial asset and liability at fair value measurement.

Below is the reconciliation between the amounts at the beginning and the end of the fiscal year, for the financial assets recognized at fair value, categorized as level 3:

As of December 31, 2022
Reconciliation Debt instruments Other financial<br><br> assets Equity instruments<br> <br>at fair value<br> <br>through profit or loss
Amount at the beginning 2,175,359 60,427 4,114,042
Transfers to Level 3
Transfers from Level 3
Profit and loss 731,241 5,064 3,596
Recognition and derecognition (801,964 ) 21,061 (2,508,037 )
Monetary effects (1,072,772 ) (37,137 ) (924,618 )
Amount at the end of the fiscal year 1,031,864 49,415 684,983
As of December 31, 2021
--- --- --- --- --- --- --- --- --- ---
Reconciliation Debt instruments Other financial<br><br> assets Equity instruments<br> <br>at fair value<br> <br>through profit or loss
Amount at the beginning 1,112,717 76,973 4,860,694
Transfers to Level 3
Transfers from Level 3
Profit and loss 686,775 3,562 1,211,173
Recognition and derecognition 978,699 10,002 (43,437 )
Monetary effects (602,832 ) (30,110 ) (1,914,388 )
Amount at the end of the fiscal year 2,175,359 60,427 4,114,042

Note 12 to the consolidated 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 December 31, 2022 and 2021, the Bank has not recognized any transfers between levels 1, 2 and 3 of the fair value hierarchy.

- 145 -

NOTES TO THE SEPARATE FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2022

(Translation of Financial Statements originally issued in Spanish – See Note 47)

(Figures stated in thousands of pesos in constant currency)

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 December 31, 2022 and 2021:

12/31/2022
Composition Carrying<br> amount Level 1 Level 2 Level 3 Fair value
Financial assets
Cash and deposits in banks 240,012,345 240,012,345 240,012,345
Repo transactions 61,929,317 61,929,317 61,929,317
Other financial assets 43,211,490 43,211,490 43,211,490
Loans and other financing 598,375,914 521,939,679 521,939,679
Other debt securities 599,594,038 511,722,746 82,669,663 96,304 594,488,713
Financial assets delivered as guarantee 30,096,021 30,096,021 30,096,021
Total 1,573,219,125 886,971,919 82,669,663 522,035,983 1,491,677,565
Financial liabilities
Deposits 1,287,889,944 642,191,216 644,641,388 1,286,832,604
Other financial liabilities 114,905,708 110,605,835 4,371,904 114,977,739
Financing received from the BCRA and other financial institutions 2,448,871 2,382,151 51,492 2,433,643
Issued corporate bonds 3,003,738 2,933,474 2,933,474
Subordinated corporate bonds 72,274,386 58,986,558 58,986,558
Total 1,480,522,647 755,179,202 66,343,428 644,641,388 1,466,164,018
12/31/2021
--- --- --- --- --- --- --- --- --- --- ---
Composition Carrying<br> amount Level 1 Level 2 Level 3 Fair value
Financial assets
Cash and deposits in banks 326,918,809 326,918,809 326,918,809
Repo transactions 61,176,357 61,176,357 61,176,357
Other financial assets 50,746,847 50,746,847 50,746,847
Loans and other financing 687,818,816 637,724,702 637,724,702
Other debt securities 46,838,533 44,550,843 1,265,887 304,156 46,120,886
Financial assets delivered as guarantee 34,470,761 34,470,761 34,470,761
Total 1,207,970,123 517,863,617 1,265,887 638,028,858 1,157,158,362
Financial liabilities
Deposits 1,139,660,478 643,214,212 495,799,566 1,139,013,778
Other financial liabilities 114,974,304 112,179,459 2,794,914 114,974,373
Financing received from the BCRA and other financial institutions 852,127 771,258 74,752 846,010
Issued corporate bonds 5,825,893 5,128,186 5,128,186
Subordinated corporate bonds 81,844,664 67,191,154 67,191,154
Total 1,343,157,466 756,164,929 75,189,006 495,799,566 1,327,153,501 
- 146 -

NOTES TO THE SEPARATE FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2022

(Translation of Financial Statements originally issued in Spanish – See Note 47)

(Figures stated in thousands of pesos in constant currency)

13. BUSINESS COMBINATIONS

On October 1, 2021, the Bank exercised the call option to reach 24.99% of the equity interest in Fintech SGR, being this a structured entity in which the Bank has control. Details generated by this transaction are described in note 13 to the consolidated Financial Statements.

14. INVESTMENTS IN SUBSIDIARIES, ASSOCIATES AND JOINT ARRANGEMENTS

The Bank’s interests in associates and joint ventures are disclosed in note 14 to the consolidated Financial Statements. For further information on the Bank’s interest in subsidiaries, associates and joint ventures, see also Exhibit E “Detailed information on interest on other companies”.

15. OTHER NON-FINANCIAL ASSETS

The composition of other non-financial assets as of December 31, 2022 and 2021 is as follows:

Composition 12/31/2022 12/31/2021
Investment property (see Exhibit F) 7,956,684 890,858
Advanced prepayments 2,305,661 1,597,689
Tax advances 1,190,918 834,882
Other 40,643 281,414
Total 11,493,906 3,604,843
16. 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.

- 147 -

NOTES TO THE SEPARATE FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2022

(Translation of Financial Statements originally issued in Spanish – See Note 47)

(Figures stated in thousands of pesos in constant currency)

As of December 31, 2022 and 2021, amounts balances and profit or loss related to transactions generated with related parties are as follows:

As of December 31, 2022
Main subsidiaries
Macro Bank<br> Limited Macro<br> Securities<br> SAU Macro<br> Fondos<br> SGFCISA Argenpay<br> SAU Fintech<br> SGR Associates Key<br> management<br> personnel<br> (1) Other<br> related<br> parties Total
Assets
Cash and deposits in banks 1,419 1,419
Other financial assets 3,017,035 3,017,035
Loans and other financing (2)
Overdraft 56,251 420,927 477,178
Credit cards 163,213 49,820 213,033
Lease 66,686 66,686
Personal loans 1,162 1,162
Mortgage loans 542,582 542,582
Other loans 2,113,373 151,849 1,400,121 3,665,343
Guarantee granted 1,540,021 1,540,021
Total assets 1,419 2,113,373 3,017,035 915,057 3,477,575 9,524,459
Liabilities
Deposits 2,936,305 65,353 58,138 116 84,710 1,002,317 1,196,288 5,343,227
Other financial liabilities 513 11,672 12,185
Issued corporate bonds 109,275 178,907 288,182
Subordinated corporate bonds 144,549 144,549
Other non-financial liabilities 20,216 20,216
Total liabilities 3,045,580 244,260 58,138 144,665 84,710 1,002,830 1,228,176 5,808,359
Income / (loss)
Interest income 4,323 288,313 1,928,422 2,221,058
Interest expense (22,970 ) (103,386 ) (69,031 ) (195,387 )
Commissions income 24,841 156 792 345 59 47,043 73,236
Commissions expense (10,647 ) (19 ) (412 ) (11,078 )
Other operating income 5 40 1,304,736 52 1,304,833
Allowance for loan losses (374 ) (374 )
Administrative expense (585,739 ) (585,739 )
Other operating expense (14,511 ) (70,829 ) (85,340 )
Total Income / (loss) 5 14,279 156 40 1,294,881 (22,625 ) 184,967 1,249,506 2,721,209
(1) Includes close family members of the key management personnel.
--- ---
(2) The maximum financing amount for loans and other financing as of December 31, 2022 for Macro Securities<br>SAU, Fintech SGR, Key management personnel and other related parties amounted to 4,528,425, 2,535,472, 1,267,855 and 16,840,167, respectively. 
- 148 -

NOTES TO THE SEPARATE FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2022

(Translation of Financial Statements originally issued in Spanish – See Note 47)

(Figures stated in thousands of pesos in constant currency)

As of December 31, 2021
Main subsidiaries
Macro Bank<br> Limited Macro<br> Securities<br> SAU Macro<br> Fondos<br> SGFCISA Argenpay<br> SAU Fintech<br> SGR Associates Key<br> management<br> personnel<br> (1) Other<br> related<br> parties Total
Assets
Cash and deposits in banks 1,603 1,603
Other financial assets 1,477,165 1,477,165
Loans and other financing (2)
Documents 55,596 55,596
Overdraft 156,620 492,663 649,283
Credit cards 139,924 87,404 227,328
Lease 55,956 55,956
Personal loans 2,776 2,776
Mortgage loans 499,837 499,837
Other loans 2,697,732 148,709 3,095,126 5,941,567
Guarantee granted 1,989,329 1,989,329
Total assets 1,603 2,697,732 1,477,165 947,866 5,776,074 10,900,440
Liabilities
Deposits 8 3,097,952 318,915 133,622 60 102,927 911,474 2,124,631 6,689,589
Other financial liabilities 382 10,357 10,739
Subordinated corporate bonds 81,844 81,844
Other non-financial liabilities 29,963 29,963
Total liabilities 8 3,097,952 318,915 133,622 81,904 102,927 911,856 2,164,951 6,812,135
Income / (loss)
Interest income 6,960 313,510 2,675,551 2,996,021
Interest expense (8,205 ) (33,765 ) (63,380 ) (109,113 ) (214,463 )
Commissions income 42,841 232 56 434 31 43,945 87,539
Commissions expense (699 ) (45 ) (343 ) (1,087 )
Profit from measurement of financial instruments at fair value through profit or loss 45,691 45,691
Other operating income 8 6,693 13,049 62 19,812
Administrative expense (468,070 ) (468,070 )
Other operating expense (144,963 ) (144,963 )
Total Income / (loss) 8 48,289 232 58,097 (33,331 ) 250,116 1,997,069 2,320,480
(1) Includes close family members of the key management personnel.
--- ---
(2) The maximum financing amount for loans and other financing as of December 31, 2021 for Macro Securities<br>SAU, Fintech SGR, Key management personnel and other related parties amounted to 2,720,419, 1,477,165, 1,341,171 and 11,912,135, respectively.

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 December 31, 2022 and 2021, totaled 909,402 and 997,395, respectively.

- 149 -

NOTES TO THE SEPARATE FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2022

(Translation of Financial Statements originally issued in Spanish – See Note 47)

(Figures stated in thousands of pesos in constant currency)

In addition, fees received by the Directors as of December 31, 2022 and 2021 amounted to 1,658,985 and 2,117,929, respectively.

Additionally, the composition of the Board of Directors and key management personnel is as follows:

Composition 12/31/2022 12/31/2021
Board of Directors 12 13
Senior managers of the key management personnel 11 11
Total 23 24
17. DEPOSITS
--- ---

The composition of deposits as of December 31, 2022 and 2021 is as follows:

Composition 12/31/2022 12/31/2021
Non-financial Public Sector 109,952,253 109,868,280
Financial sector 1,653,447 1,872,336
Non-financial Private Sector and Foreign Residents 1,176,284,244 1,027,919,862
Checking accounts 149,669,947 187,256,260
Saving accounts 422,308,756 363,243,763
Time deposits 568,401,965 446,801,428
Investment accounts 20,484,440 13,237,020
Other 15,419,136 17,381,391
Total 1,287,889,944 1,139,660,478
18. OTHER FINANCIAL LIABILITIES
--- ---

The composition of other financial liabilities as of December 31, 2022 and 2021 is as follows:

Composition 12/31/2022 12/31/2021
Credit and debit card settlement - due to merchants 73,511,478 64,371,122
Amounts payable for spot purchases of foreign currency pending settlement 16,050,423 30,215,931
Amounts payable for spot purchases of government securities pending settlement 9,780,493 3,097,733
Payment orders pending to foreign exchange settlement 5,161,399 5,793,940
Collections and other transactions on account and behalf of others 2,805,832 4,736,340
Finance leases liabilities (note 19) 1,955,278 2,744,791
Other 5,640,805 4,014,447
Total 114,905,708 114,974,304
19. LEASES
--- ---

19.1 The Bank as a lessee

As explained in note 19.1 to the consolidated Financial Statements, the Bank has lease arrangements mainly for real properties recognized in the item “Property, plant and equipment”.

- 150 -

NOTES TO THE SEPARATE FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2022

(Translation of Financial Statements originally issued in Spanish – See Note 47)

(Figures stated in thousands of pesos in constant currency)

Set out below are the carrying amounts of lease liabilities and the movements during the fiscal year:

Movements 2022 2021
At the beginning of the fiscal year 2,744,791 3,444,123
Additions 624,820 924,936
Accretion of interest (see note 31) 385,368 426,069
Difference in foreign currency 710,151 435,238
Payments (1,011,317 ) (1,481,365 )
Monetary effects (1,498,535 ) (1,004,210 )
At the end of the fiscal year (see note 18) 1,955,278 2,744,791

The short term leases were recognized as expense for an amount of 14,024 and 15,554 for the years ended December 31, 2022 and 2021, respectively.

The table below shows the maturity of the lease liabilities as of December 31, 2022 and 2021:

Lease<br> liabilities Up<br> to 1<br> month Over<br> 1<br> month and<br> up to 3<br> months Over<br> 3<br> months<br> and up to <br> 6 months Over<br> 6<br> months and<br> up to 12<br> months Total<br> up to<br> 12 months Over<br> 12<br> months<br> and up to<br> 24 months Over<br> 24<br> months Total<br><br> over 12<br> months
Balances as of 12/31/2022 100,311 164,384 226,322 374,270 865,287 459,239 630,753 1,089,992
Balances as of 12/31/2021 115,707 200,861 276,170 471,536 1,064,274 715,960 964,557 1,680,517

19.2 The Bank as a lessor

In note 19.2 to the consolidated Financial Statements, are detailed the Bank´s transactions when acts as a lessor.

20. 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 December 31, 2022 and 2021.

The expected terms to settle these obligations are as follows:

12/31/2022
Composition Within 12<br> months Over 12<br> months 12/31/2022 12/31/2021
For administrative, disciplinary and criminal penalties 500 500 972
Letters of credits, guarantees and other commitments (1) 686,524 686,524 648,549
Commercial claims in progress (2) 170,878 323,732 494,610 618,540
Labor lawsuits 220,529 45,837 266,366 419,573
Pension funds - reimbursement 303,631 214,859 518,490 206,987
Other 12,370 723,975 736,345 1,287,157
Total 1,393,932 1,308,903 2,702,835 3,181,778
(1) These amounts correspond to the ECL<br> calculated for contingent transactions, which are mentioned in note 4.
--- ---
(2) See also note 42.2. 
- 151 -

NOTES TO THE SEPARATE FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2022

(Translation of Financial Statements originally issued in Spanish – See Note 47)

(Figures stated in thousands of pesos in constant currency)

21. OTHER NON-FINANCIAL LIABILITIES

The composition of other non-financial liabilities as of December 31, 2022 and 2021 is as follows:

Composition 12/31/2022 12/31/2021
Withholdings 15,754,918 13,608,455
Salaries, bonuses and payroll taxes payables 10,659,434 12,570,741
Taxes payables 7,711,416 6,263,018
Miscellaneous payables 2,790,806 3,570,449
Retirement pension payment orders pending settlement 1,124,896 824,014
Fees payables 560,130 506,715
Dividends payables (see note 43) 51,776,837
Other 1,469,688 2,108,194
Total 40,071,288 91,228,423
22. EMPLOYEE BENEFITS PAYABLE
--- ---

The table below presents the amounts of employee benefits payable as of December 31, 2022 and 2021:

Short-term employee benefits 12/31/2022 12/31/2021
Salaries, bonuses and payroll taxes payables 6,016,668 6,085,996
Vacation accrual 4,642,766 6,484,745
Total short-term employee benefits 10,659,434 12,570,741

The Bank has not long-term employee benefits or post-employment benefits as of December 31, 2022 and 2021.

23. 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 December 31, 2022 and 2021:

12/31/2022 Without<br> due<br> date Up<br> to 1<br> month Over<br> 1<br> month and<br> up to 3<br> months Over<br> 3<br> months and <br> up to 6<br> months Over<br> 6<br> months and<br> up to 12<br> months Total<br> up to<br> 12 months Over<br> 12<br> months and <br> up to 24<br> months Over<br> 24<br> months Total<br> over 12<br> months
Assets
Cash and deposits in banks 240,012,345
Debt securities at fair value<br> through profit or loss 1,288,529 19,934,801 81,060,489 81,144,792 183,428,611 12,235,910 1,072,379 13,308,289
Derivative financial instruments 8,486 15,431 18,982 42,899
Repo transactions 61,929,317 61,929,317
Other financial assets 10,008,572 20,810,222 13,881 670,485 21,494,588 11,757,745 11,757,745
Loans and other financing (1) 1,456,402 263,092,174 49,526,049 56,306,665 60,009,135 428,934,023 58,903,976 109,081,513 167,985,489
Other debt securities 516,992,832 103,140,469 4,775,989 53,229,670 678,138,960 13,727,439 37,594,369 51,321,808
Financial assets delivered as<br> guarantee 30,096,021
Equity instruments<br> at fair value through profit or loss 705,940
Total<br> assets 282,279,280 864,121,560 172,630,631 142,832,610 194,383,597 1,373,968,398 84,867,325 159,506,006 244,373,331 
- 152 -

NOTES TO THE SEPARATE FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2022

(Translation of Financial Statements originally issued in Spanish – See Note 47)

(Figures stated in thousands of pesos in constant currency)

12/31/2022 Without<br> due<br> date Up<br> to 1<br> month Over<br> 1<br> month and<br> up to 3<br> months Over<br> 3<br> months and <br> up to 6<br> months Over<br> 6<br> months and <br> up to 12<br> months Total<br> up to<br> 12 months Over<br> 12<br> months<br> and up to<br> 24 <br> months Over<br> 24<br> months Total<br> over 12<br> months
Liabilities
Deposits 633,429,143 532,916,780 104,045,528 16,006,720 1,471,095 654,440,123 6,295 14,383 20,678
Derivative financial instruments 1,715 656 2,371
Other financial liabilities 110,565,046 356,056 280,311 539,411 111,740,824 882,492 2,282,392 3,164,884
Financing received from the BCRA<br> and other financial institutions 291,230 511,370 1,603,567 42,704 2,448,871
Issued corporate bonds 7,177 7,177 2,996,561 2,996,561
Subordinated<br> corporate bonds 1,423,066 1,423,066 70,851,320 70,851,320
Total<br> liabilities 633,429,143 643,774,771 104,920,787 19,313,664 2,053,210 770,062,432 3,885,348 73,148,095 77,033,443
(1) The amounts included in “without due date” are related to<br> the non-performing portfolio.
--- ---
12/31/2021 Without<br> due<br> date Up<br> to 1<br> month Over<br> 1<br> month and<br> up to 3<br> months Over<br> 3<br> months and <br> up to 6<br> months Over<br> 6<br> months and<br> up to 12<br> months Total<br> up to<br> 12 months Over<br> 12<br> months and<br> up to 24<br> months Over<br> 24<br> months Total<br> over 12<br> months
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Assets
Cash and deposits<br> in banks 326,918,809
Debt securities at fair value<br> through profit or loss 633,209 404,629 19,520,451 15,259,990 35,818,279 10,847,218 8,454,925 19,302,143
Derivative financial instruments 2,524 2,524
Repo transactions 61,176,357 61,176,357
Other financial assets 3,902,051 35,779,835 111,957 1,528,837 37,420,629 9,484,594 9,484,594
Loans and other financing (1) 319,135 255,244,248 59,795,231 64,027,592 73,753,392 452,820,463 77,414,659 157,264,559 234,679,218
Other debt securities 266,710,380 866,332 102,873,519 87,212,086 457,662,317 83,487,292 7,064,241 90,551,533
Financial assets delivered as<br> guarantee 34,470,761
Equity instruments<br> at fair value through profit or loss 4,138,309
Total<br> assets 369,749,065 619,544,029 61,178,149 187,952,923 176,225,468 1,044,900,569 171,749,169 182,268,319 354,017,488
Liabilities
Deposits 631,512,047 399,340,442 96,274,539 11,568,297 903,931 508,087,209 60,388 834 61,222
Derivative financial instruments 4,933 4,933
Other financial liabilities 112,141,476 338,284 300,953 494,491 113,275,204 730,098 969,002 1,699,100
Financing received from the BCRA<br> and other financial institutions 457,650 349,829 22,788 11,922 842,189 9,938 9,938
Issued corporate bonds 5,825,893 5,825,893
Subordinated<br> corporate bonds 1,784,666 1,784,666 80,059,998 80,059,998
Total<br> liabilities 631,512,047 511,939,568 96,962,652 19,507,530 1,410,344 629,820,094 800,424 81,029,834 81,830,258
(1) The amounts included in “without due date” are related<br> to the non-performing portfolio.
--- ---
24. DISCLOSURES BY OPERATING SEGMENT
--- ---

The Bank has an approach of its banking business that is described in note 24 to the consolidated Financial Statements.

- 153 -

NOTES TO THE SEPARATE FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2022

(Translation of Financial Statements originally issued in Spanish – See Note 47)

(Figures stated in thousands of pesos in constant currency)

25. INCOME TAX
a) Inflation adjustment and tax rate on<br> income tax
--- ---

Note 25 to the consolidated 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 deferred income tax:
Composition 12/31/2022 12/31/2021
--- --- --- --- ---
Deferred tax assets
Loans and other financing 3,626,197 5,124,894
Provisions and employee benefits 1,529,978 2,111,591
Allowances for contingencies 895,959 894,586
Leases 333,342 342,289
Investments in other companies 62,489
Other 523,739 503,131
Total deferred tax assets 6,971,704 8,976,491
Deferred tax liabilities
Property, plant and equipment and other non-financial assets 10,910,128 10,813,704
Intangible assets 6,062,959 5,712,776
Tax effects on forward sales 3,093,064 1,816,643
Investments in other companies 1,306,131
Other 126,178 414,958
Total deferred tax liabilities 20,192,329 20,064,212
Net deferred tax liabilities 13,220,625 11,087,721

Changes in net deferred tax assets and liabilities as of December 31, 2022 and 2021 are summarized as follows:

Composition 12/31/2022 12/31/2021
Net deferred tax liabilities at beginning of the fiscal year 11,087,721 18,497,764
Loss / (Profit) for deferred taxes recognized in the statement of income 2,132,904 (7,410,043 )
Net deferred tax liabilities at fiscal year end 13,220,625 11,087,721

The main items of income tax expense in the consolidated Financial Statements are as follows:

Composition 12/31/2022 12/31/2021
Current income tax expense 14,267,451 9,424,868
Loss / (Profit) for deferred taxes 2,132,904 (7,410,043 )
Income tax loss recorded in the statement of income 16,400,355 2,014,825
Income tax (profit) / loss recorded in other comprehensive income (2,445,927 ) 2,350,647
Total 13,954,428 4,365,472 
- 154 -

NOTES TO THE SEPARATE FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2022

(Translation of Financial Statements originally issued in Spanish – See Note 47)

(Figures stated in thousands of pesos in constant currency)

The table below shows the reconciliation between income tax and the amounts obtained by applying the current tax rate in Argentina to the income carrying amount:

Composition 12/31/2022 12/31/2021
Income carrying amount before income tax 59,438,874 54,847,591
Applicable income tax rate 35 % 35 %
Income tax on income carrying amount 20,803,606 19,196,657
Net permanent differences and other tax effects including the fiscal inflation adjustment (4,403,251 ) (17,181,832 )
Total income tax 16,400,355 2,014,825

As of December 31, 2022 and 2021, the effective income tax rate is 27.6% and 3.7%, respectively. During fiscal year 2021, the effective income tax rate was affected by the inflation adjustment determined for accounting and income tax purposes, both current and deferred.

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 25 to the consolidated 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, which is in progress.

Along with the filings mentioned in the first paragraph of this section, on December 28, 2021, the Bank filed petitions for declaratory judgment with the Federal Administrative Contentious Court for the periods under analysis. The file 22274/2021, for the fiscal year 2019, is in process in Court No. 12 and the file 22278/2021, for the fiscal year 2020, is in process in Court No. 1.

Fiscal year 2021

On October 17, 2022, the Bank filed a reimbursement action with the AFIP requesting that 382,189 paid as income tax for the 2021 tax period be reimbursed.

On January 3, 2023, the AFIP notified the beginning of an income tax audit related to the abovementioned fiscal year, which is in progress.

Reimbursement actions – Fiscal years 2013 to 2017 and 2018

On October 24, 2019, Banco Macro SA filed with the AFIP-DGI (Argentine tax authorities) two reimbursement actions under the terms established by the first paragraph of section 81, Law No. 11683 requesting the reimbursement of 4,782,766 and 5,015,451 (not restated amounts) paid to tax authorities as income tax during tax periods 2013 through 2017 and 2018, respectively, arising from the impossibility to apply the adjustment for inflation and other adjustment mechanisms set forth by Income Tax Law (prior to the amendments introduced by Laws No. 27430 and 27468 for periods 2013 through 2017, and as revised in 2019 and amended for the 2018 tax period), plus the related compensatory interest (SIGEA [case and file management system] files No. 19144-14224/2019 and 19144-14222/2019). Since tax authorities have not yet issued a resolution with respect to the abovementioned claims, on August 7, 2020, the Bank filed both reimbursement requests under the terms of section 81, Law No. 11683 with the Federal Contentious and Administrative Trial Courts, which are pending in Courts No. 8 and 2 of such jurisdiction, respectively (cases No. 11285/2020 and 11296/2020). Currently, the file for the fiscal year 2018 is in the evidence stage.

- 155 -

NOTES TO THE SEPARATE FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2022

(Translation of Financial Statements originally issued in Spanish – See Note 47)

(Figures stated in thousands of pesos in constant currency)

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.

26. COMMISSIONS INCOME
Composition 12/31/2022 12/31/2021
--- --- --- --- ---
Performance obligations satisfied at a point in time
Commissions related to obligations 42,576,947 39,653,921
Commissions related to credit cards 24,778,637 23,596,621
Commissions related to insurance 4,226,128 4,450,781
Commissions related to trading and foreign exchange transactions 1,527,054 1,701,807
Commissions related to securities value 610,305 552,621
Commissions related to loans and other financing 416,395 308,418
Commissions related to financial guarantees granted 10,385 11,527
Performance obligations satisfied over certain time period
Commissions related to credit cards 407,727 716,392
Commissions related to trading and foreign exchange transactions 59,020 75,697
Commissions related to loans and other financing 7,186 9,377
Commissions related to obligations 1,571 2,127
Commissions related to financial guarantees granted 184
Total 74,621,355 71,079,473
27. DIFFERENCES IN QUOTED PRICES OF GOLD AND FOREIGN CURRENCY
--- ---
Composition 12/31/2022 12/31/2021
--- --- --- --- ---
Translation of foreign currency assets and liabilities into pesos 60,022,668 7,611,619
Income from foreign currency exchange 1,192,855 1,069,054
Total 61,215,523 8,680,673
28. OTHER OPERATING INCOME
--- ---
Composition 12/31/2022 12/31/2021
--- --- --- --- ---
Services 4,140,776 4,693,608
Adjustments and interest from other receivables 3,669,477 2,225,082
Adjustments from other receivables with CER clauses 1,679,397 681,084
Other receivables for financial intermediation 947,942 1,833,714
Sale of investment in properties and other non-financial assets 76,116
Other 6,486,252 2,090,696
Total 16,923,844 11,600,300 
- 156 -

NOTES TO THE SEPARATE FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2022

(Translation of Financial Statements originally issued in Spanish – See Note 47)

(Figures stated in thousands of pesos in constant currency)

29. EMPLOYEE BENEFITS
Composition 12/31/2022 12/31/2021
--- --- --- --- ---
Remunerations 52,753,996 53,886,491
Payroll taxes 12,970,225 12,405,544
Compensations and bonuses to employees 7,610,940 7,243,454
Employee services 2,720,806 2,115,201
Total 76,055,967 75,650,690
30. ADMINISTRATIVE EXPENSES
--- ---
Composition 12/31/2022 12/31/2021
--- --- --- --- ---
Taxes 6,291,269 5,605,097
Maintenance, conservation and repair expenses 6,142,377 6,379,009
Armored truck, documentation and events 5,260,049 5,631,941
Security services 3,761,984 3,972,295
Other fees 3,605,405 3,198,275
Electricity and communications 3,456,562 3,952,079
Software 2,487,680 3,102,540
Advertising and publicity 2,316,936 1,693,442
Fees to directors and syndics 1,808,419 1,390,481
Representation, travel and transportation expenses 647,984 442,357
Insurance 404,296 519,742
Stationery and office supplies 269,390 243,719
Hired administrative services 266,403 242,756
Leases 173,494 227,185
Other 1,157,834 1,954,992
Total 38,050,082 38,555,910
31. OTHER OPERATING EXPENSES
--- ---
Composition 12/31/2022 12/31/2021
--- --- --- --- ---
Turnover tax 40,895,424 34,905,903
From credit cards 17,189,552 14,978,007
Charges for other provisions 2,373,338 3,160,367
Deposit guarantee fund contributions 1,913,030 2,029,167
Taxes 842,584 920,997
Loss from sale or impairment of investment in properties and other non-financial assets 542,323
Insurance claims 436,033 174,484
Donations 417,558 56,647
Other adjustments and interests for miscellaneous obligations (see note 19) 385,368 426,069
From administrative, disciplinary and criminal penalties 81,094
Other 8,671,759 9,392,623
Total 73,666,969 66,125,358 
- 157 -

NOTES TO THE SEPARATE FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2022

(Translation of Financial Statements originally issued in Spanish – See Note 47)

(Figures stated in thousands of pesos in constant currency)

32. 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 fiscal year. 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 12/31/2022 12/31/2021 12/31/2020
Cash and deposits in banks 240,012,345 326,918,809 336,649,511
Debt Securities at fair value through profit or loss 9,467
Other debt securities 491,521,571 259,017,957 378,337,514
Total 731,533,916 585,946,233 714,987,025
33. CAPITAL STOCK
--- ---

The Bank’s subscribed and paid-in capital from December 31, 2019 to December 31, 2022, amounted to 639,413. See also Exhibit K.

34. DEPOSIT GUARANTEE INSURANCE

Note 35 to the consolidated 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.

- 158 -

NOTES TO THE SEPARATE FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2022

(Translation of Financial Statements originally issued in Spanish – See Note 47)

(Figures stated in thousands of pesos in constant currency)

35. RESTRICTED ASSETS

As of December 31, 2022 and 2021 the following Bank’s assets are restricted:

Composition 12/31/2022 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. 92,856 94,847
· Federal Government Treasury Bonds in pesos adjusted by CER 1.40%, maturity 03/27/2023, securing the sectoral Credit Program of the Province<br>of San Juan, production investment financing fund. 83,319 86,975
· 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. 33,682 35,160
· 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). 14,891 15,545
Subtotal debt securities at fair value through profit or loss and other debt securities 224,748 232,527
Other financial assets
· Interests derived from contributions made as protector partner<br>(1). 2,413,559 1,485,299
· Sundry debtors – attachment within the scope of the claim<br>filed by the DGR against the CABA for turnover tax differences. 827 1,610
Subtotal Other financial assets 2,414,386 1,486,909
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. 24,824,547 30,242,005
· Guarantee deposits related to credit and debit card transactions. 4,043,563 2,567,119
· Other guarantee deposits. 1,227,911 1,661,637
Subtotal Financial assets delivered as guarantee 30,096,021 34,470,761
Other non-financial assets
· Real property related to a call option sold. 2,456,151 421,571
Subtotal other non-financial assets 2,456,151 421,571
Total 35,191,306 36,611,768
(1) As of December 31, 2022 and 2021 it is related to the risk fund Fintech SGR and Garantizar SGR. In<br>order to keep tax benefits related to these contributions, they must be maintained between two and three years from the date they were<br>made.
--- ---
36. TRUST ACTIVITIES
--- ---

Note 37 to the consolidated Financial Statements describes the different trust agreements according to the business purpose sought by the Bank, which may be summarized as follows:

36.1 Financial trusts for investment purposes

As of December 31, 2022 and 2021, the debt securities with investment purposes and certificate of participation in financial trusts amounted to 950,899 and 1,034,155, respectively.

According to the latest accounting information available as of the date of issuance of these separate Financial Statements, the corpus assets of the trusts exceed the carrying amount in the related proportions.

- 159 -

NOTES TO THE SEPARATE FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2022

(Translation of Financial Statements originally issued in Spanish – See Note 47)

(Figures stated in thousands of pesos in constant currency)

36.2 Trusts created using financial assets transferred by the Bank (Securitization)

As of December 31, 2022 and 2021, considering the latest available accounting information as of the date of issuance of these separate Financial Statements, the assets managed through Macro Fiducia SAU of this type of trusts amounted to 11,680 and 18,708, respectively.

36.3 Trusts guaranteeing loans granted by the Bank

As of December 31, 2022 and 2021, considering the latest available accounting information as of the date of issuance of these separate Financial Statements, the assets managed by the Bank amounted to 2,721,267 and 3,942,468, respectively.

36.4 Trusts in which the Bank acts as Trustee (Management)

As of December 31, 2022 and 2021, considering the latest available accounting information as of the date of issuance of these separate Financial Statements, the assets managed by the Bank amounted to 4,086,750 and 5,786,674, respectively.

37. COMPLIANCE WITH CNV REGULATIONS

Considering Banco Macro SA’s current operations, and according to the different categories of agents established by CNV rules (as per General Resolution 622/2013, as amended), the Bank is registered with this agency as Agent for the Custody of Collective Investment Products of Mutual Funds (AC PIC FCI, for their acronyms in Spanish) – Comprehensive Depositary Company, clearing and settlement agent and trading agent (ALyC and AN – comprehensive, for their acronyms in Spanish) and is registered in the “List of Authorized companies to guarantee capital market instruments”, as described in note 38.1.1 to the consolidated Financial Statements. Note 38.3 to the mentioned Financial Statements describes the number of shares subscribed by third parties and the assets held by the Bank in its capacity as depositary company.

Additionally, the Bank’s shareholders’ equity as of December 31, 2022 stated in Units of Purchasing Power (UVA, for its acronym in Spanish) amounted to 2,765,002,747 and exceeds the minimum amount required by such regulation for the different categories of agents in which the Bank is registered, amounting to 470,350 UVAs as of that date, and the minimum required statutory guarantee account of 235,175 UVAs, which the Bank paid-in with government securities as described in note 35 and the cash deposits in BCRA accounts 000285 and 80285 belonging to the Bank.

In addition, note 38.2 to the consolidated Financial Statements presents the general policy of documents in custody, describing which information has been disclosed and delivered to third parties for custody.

38. ACCOUNTING ITEMS THAT IDENTIFY THE COMPLIANCE WITH MINIMUM CASH REQUIREMENTS

The items recognized by the Bank to constitute the minimum cash requirement effective for December 2022 are described in note 39 to the consolidated Financial Statements.

39. PENALTIES APPLIED TO THE ENTITY AND SUMMARY PROCEEDINGS INITIATED BY THE BCRA

Note 40 to the consolidated 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.

- 160 -

NOTES TO THE SEPARATE FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2022

(Translation of Financial Statements originally issued in Spanish – See Note 47)

(Figures stated in thousands of pesos in constant currency)

40. CORPORATE BONDS ISSUANCE

The corporate bonds liabilities recorded by the Bank are as follows:

Corporate<br> Bonds Original<br> value Residual<br> face<br><br> value as of<br><br> 12/31/2022 12/31/2022 12/31/2021
Subordinated Resettable<br> – Class A USD 400,000,000 USD 400,000,000 72,274,386 81,844,664
Non-subordinated – Class E USD 17,000,000 USD 17,000,000 3,003,738
Non-subordinated – Class B $ 4,620,570,000 5,825,893
Total 75,278,124 87,670,557

Note 41 to the consolidated Financial Statements describes liabilities for corporate bonds recognized by the Bank.

41. 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 December 31, 2022 and 2021 is as follows:

Composition 12/31/2022 12/31/2021
Custody of government and private securities and<br> other assets held by third parties 619,972,455 591,389,869
Preferred and other collaterals received from customers (1) 186,767,881 234,168,943
Outstanding checks not yet paid 19,943,141 15,796,202
Checks already deposited and pending clearance 16,828,520 21,715,717
(1) Related to collaterals used to secure loans transactions and other<br> financing, under the applicable rules in force on this matter.
--- ---
42. TAX AND OTHER CLAIMS
--- ---

42.1. Tax claims

Note 43.1 to the consolidated 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 separate Financial Statements.

42.2. Other claims

Note 43.2 to the consolidated 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 separate Financial Statements.

- 161 -

NOTES TO THE SEPARATEFINANCIAL STATEMENTS

AS OF DECEMBER 31, 2022

(Translation of Financial Statements originally issued in Spanish – See Note 47)

(Figures stated in thousands of pesos in constant currency)

43. RESTRICTION ON DIVIDENDS DISTRIBUTION

Note 44 to the consolidated Financial Statements describes the main legal provisions regulating the restriction on profit distribution.

As of December 31, 2022, the related adjustments to be made on unappropriated retained earnings of Banco Macro SA are as follows:

i. Other comprehensive income for 816,164.
ii. The positive net difference between the<br> amortized cost and the fair value of government debt instruments and/or monetary regulation<br> instruments issued by the BCRA for those instruments recognized at amortized cost for 6,145,736.
--- ---
44. CAPITAL MANAGEMENT, CORPORATE GOVERNANCE TRANSPARENCY POLICY AND RISK MANAGEMENT
--- ---

Note 45 to the consolidated Financial Statements describes the main guidelines of the Bank as to capital management, corporate governance transparency policy and risk management.

45. 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 46 to the consolidated Financial Statements.

46. EVENTS AFTER REPORTING PERIOD

No other significant events occurred between the end of the fiscal year and the issuance of these separate Financial Statements that may materially affect the financial position or the profit and loss for the fiscal year, not disclosed in these separate Financial Statements.

47. ACCOUNTING PRINCIPLES – EXPLANATION ADDED FOR TRANSLATION INTO ENGLISH

These separate 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.

| - 162 - | Delfín Jorge Ezequiel Carballo<br> Chairperson |

| --- | --- |

EXHIBIT A

DETAILOF GOVERNMENT AND PRIVATE SECURITIES

ASOF DECEMBER 31, 2022 AND 2021

(Translation of the Financial Statements originally issued in Spanish – See Note 47)

(Figures stated in thousands of pesos in constant currency as of December 31, 2022)

**** **** Holdings Position
**** **** 12/31/2022 12/31/2021 12/31/2022
Name Identification FairValue Fairvalue level Book<br><br><br>amounts Book<br><br><br>amounts Position<br>without options Options Final<br>position
DEBT SECURITIES AT FAIR VALUE<br>THROUGH PROFIT OR LOSS
- Local
Government securities
Federal government bonds<br>in dual currency at discount - Maturity: 07-21-2023 9146 1 58,644,665 58,644,665 58,644,665
Federal government treasury bonds<br>linked to dolar - Maturity: 04-28-2023 5928 1 56,988,590 56,988,590 56,988,590
Federal government bonds in dual<br>currency at discount - Maturity: 09-29-2023 9147 1 21,773,638 21,773,638 21,773,638
Federal government bonds in dual<br>at discount - Maturity: 06-30-2023 9145 1 20,540,723 20,540,723 20,540,723
Federal government treasury bonds<br>in pesos adjusted by CER - Maturity: 03-25-2023 5492 1 12,542,445 7,499,991 14,669,745 14,669,745
Federal government bonds in dual<br>at discount - Maturity: 02-28-2024 9156 1 11,476,239 11,476,239 11,476,239
Federal government treasury bonds<br>in pesos adjusted by CER - Maturity: 03-06-2023 5324 1 5,523,468 3,334,906 5,523,468 5,523,468
Letters of National Estate in pesos<br>adjusted by CER at discount - Maturity: 02-17-2023 9111 1 1,846,948 1,846,948 1,846,948
Federal government treasury bonds<br>in pesos adjusted by CER - Maturity: 06-19-2023 9127 1 1,814,052 1,814,052 1,814,052
Federal government treasury bonds<br>in pesos adjusted by CER - Maturity: 11-09-2026 5925 1 1,260,311 1,210,579 1,260,311 1,260,311
Other 3,293,957 40,899,587 3,293,957 3,293,957
Subtotal<br>local government securities 195,705,036 52,945,063 197,832,336 197,832,336
Private securities
Corporate Bonds Tarjeta Naranja S.A.<br>Class 53 Series 01- Maturity: 04-05-2023 56056 3 434,678 434,678 434,678
Debt Securities in Financial Trusts<br>Confibono 3 417,426 417,426 417,426
Debt Securities in Financial Trusts<br>Secubono 3 175,694 374,604 175,694 175,694
Securities of companies of public<br>services 3 4,066 5,756 4,066 4,066
Corporate Bonds Tarjeta Naranja S.A.<br>C048- Maturity: 04-26-2022 55317 1,050,971
Corporate Bonds Ledesma S.A. Class 10-<br>Maturity: 05-27-2022 55500 492,032
Debt Securities<br>in Financial Trusts Surcos 251,996
Subtotal<br>local private securities 1,031,864 2,175,359 1,031,864 1,031,864
TOTAL DEBT<br>SECURITIES AT FAIR VALUE THROUGH PROFIT OR LOSS 196,736,900 55,120,422 198,864,200 198,864,200 
| - 163 - | Delfín Jorge Ezequiel Carballo<br> Chairperson |

| --- | --- |

EXHIBIT A

(continued)

DETAIL OF GOVERNMENT AND PRIVATE SECURITIES

AS OF DECEMBER 31, 2022 AND 2021

(Translation of the Financial Statements originally issued in Spanish – See Note 47)

(Figures stated in thousands of pesos in constant currency as of December 31, 2022)

**** **** Holdings Position
**** **** 12/31/2022 12/31/2021 12/31/2022
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<br> other comprehensive income
- Local
Government securities
Letters of National<br> Estate in pesos adjusted by CER at discount - Maturity: 02-17-2023 9111 1 44,938,818 44,938,818 44,938,818
Federal government treasury bonds<br> in pesos adjusted by CER - Maturity: 03-25-2023 5492 1 34,466,456 20,285,891 34,466,456 34,466,456
Letters of National Estate in<br> pesos adjusted by CER at discount - Maturity: 01-20-2023 9105 1 13,323,179 13,323,179 13,323,179
Letters of National treasury<br> in pesos at discount - Maturity: 02-28-2023 9141 1 11,565,021 11,565,021 11,565,021
Letters of National treasury<br> in pesos at discount - Maturity: 03-31-2023 9164 1 10,732,116 10,732,116 10,732,116
Bonds of treasury of federal<br> government in pesos adjusted by CER - Maturity: 08-13-2023 5497 1 8,802,301 6,030,797 8,802,301 8,802,301
Bonds of treasury of federal<br> government in pesos adjusted by CER - Maturity: 05-19-2023 9127 1 2,849,299 2,849,299 2,849,299
Letters of National Estate in<br> pesos at discount - Maturity: 04-28-2023 9142 1 1,406,688 1,406,688 1,406,688
Bonds of treasury of federal<br> government in pesos adjusted by CER - Maturity: 03-06-2023 5324 1 1,354,629 1,354,629 1,354,629
Bonds of treasury of federal<br> government in pesos adjusted by CER - Maturity: 07-26-2024 5405 1 414,991 414,991 414,991
Other 13,232 216,040,672 13,232 13,232
Subtotal<br> local government securities (1) 129,866,730 242,357,360 129,866,730 129,866,730
Central Bank of Argentina<br> Bills
Liquidity letters of Central<br> Bank of Argentina in pesos - Maturity: 01-04-2022 41,921,012
Liquidity letters of Central<br> Bank of Argentina in pesos - Maturity: 01-27-2022 36,776,261
Liquidity letters of Central<br> Bank of Argentina in pesos - Maturity: 01-18-2022 36,305,152
Liquidity letters of Central<br> Bank of Argentina in pesos - Maturity: 01-11-2022 34,527,730
Liquidity letters of Central<br> Bank of Argentina in pesos - Maturity: 01-13-2022 34,092,263
Liquidity letters of Central<br> Bank of Argentina in pesos - Maturity: 01-25-2022 32,241,669
Liquidity letters of Central<br> Bank of Argentina in pesos - Maturity: 01-06-2022 30,950,258
Liquidity<br> letters of Central Bank of Argentina in pesos - Maturity: 01-20-2022 12,203,612
Subtotal<br> Central Bank of Argentina Bills 259,017,957
Total<br> Other debt securities measured at fair value through  other comprehensive income 129,866,730 501,375,317 129,866,730 129,866,730
(1) During January 2023, the Bank entered into a voluntary debt<br> swap. The following instruments entered into that swap:
--- ---
· Letters<br> of National Estate in pesos adjusted at discount by CER – Maturity 02-17-2023 (X17F3)<br> for a nominal amount of 20,900,000,000.
--- ---
· Letters<br> of National Estate in pesos at discount – Maturity 02-28-2023 (S28F3) for a nominal<br> amount of 12,893,000,000.
--- --- 
| - 164 - | Delfín Jorge Ezequiel Carballo<br> Chairperson |

| --- | --- |

EXHIBIT A

(continued)

DETAILOF GOVERNMENT AND PRIVATE SECURITIES

ASOF DECEMBER 31, 2022 AND 2021

(Translation of the Financial Statements originally issued in Spanish – See Note 47)

(Figures stated in thousands of pesos in constant currency as of December 31, 2022)

**** Holdings Position
12/31/2022 12/31/2021 12/31/2022
Name Identification Fair Value Fair valuelevel Book amounts Book amounts Position without options Options Final<br><br> <br>position
OTHER DEBT SECURITIES (continued)
Measured at amortized cost
- Local
Government securities
Bonds of treasury of federal<br> government in pesos - Maturity: 05-23-2027 9132 39,222,468 2 40,469,619 40,469,619 40,469,619
Bonds of treasury of federal<br> government in pesos Badlar x 0.7 - Maturity: 11-23-2027 9166 8,374,568 1 8,400,364 8,400,364 8,400,364
Discount bonds denominated in<br> pesos at 5.83% - Maturity: 12-31-2033 45696 657,742 1 507,009 517,875 507,009 507,009
Debt securities of Province of<br> Río Negro in pesos - Maturity: 04-12-2023 42534 203,896 2 200,378 200,378 200,378
Treasury bills of Province of<br> Río Negro Series 02 in pesos - Maturity: 06-15-2023 42555 198,801 1 199,044 199,044 199,044
Bonds of treasury of federal<br> government in pesos at 22% - Maturity: 05-21-2022 5496 44,306,545
Treasury bills of Province of<br> Neuquén Series 1 Class 1 - Maturity: 04-07-2022 42382 607,285
Debt securities of Province of<br> Río Negro in pesos - Maturity: 04-12-2022 42385 425,837
Treasury bills of Province of<br> Río Negro Series 2 Class 1 - Maturity: 06-15-2022 42479 377,125
Treasury<br> bills of Province of Neuquen Series 4 Class 1 in pesos - Maturity: 02-28-2022 42426 89,322
Subtotal<br> local government securities 49,776,414 46,323,989 49,776,414 49,776,414
Central Bank of Argentina<br> Bills
Liquidity letters of Central<br> Bank of Argentina in pesos - Maturity: 01-03-2023 62,002,563 1 62,250,767 62,250,767 62,250,767
Liquidity letters of Central<br> Bank of Argentina in pesos - Maturity: 01-24-2023 61,833,200 1 62,080,786 62,080,786 62,080,786
Liquidity letters of Central<br> Bank of Argentina in pesos - Maturity: 01-05-2023 61,755,250 1 62,003,011 62,003,011 62,003,011
Liquidity letters of Central<br> Bank of Argentina in pesos - Maturity: 01-26-2023 61,586,655 1 61,833,224 61,833,224 61,833,224
Liquidity letters of Central<br> Bank of Argentina in pesos - Maturity: 01-10-2023 61,020,500 1 61,386,248 61,386,248 61,386,248
Liquidity letters of Central<br> Bank of Argentina in pesos - Maturity: 01-12-2023 60,897,625 1 61,141,456 61,141,456 61,141,456
Liquidity letters of Central<br> Bank of Argentina in pesos - Maturity: 01-17-2023 60,292,313 1 60,533,736 60,533,736 60,533,736
Liquidity letters of Central<br> Bank of Argentina in pesos - Maturity: 01-19-2023 60,032,938 1 60,292,343 60,292,343 60,292,343
Internal letters of BCRA exchange<br> rate of reference to rate 0 - Maturity - Vto. 09-20-2023 3,610,530 2 3,796,524 3,796,524 3,796,524
Internal letters of BCRA exchange<br> rate of reference to rate 0 - Maturity - Vto. 09-22-2023 3,478,168 2 3,660,475 3,660,475 3,660,475
Other 37,386,546 37,386,546 37,386,546
Subtotal<br> Central Bank of Argentina Bills 536,365,116 536,365,116 536,365,116
Central Bank of Argentina<br> Notes
Liquidity<br> notes of Central Bank of Argentina in pesos - Maturity: 01-04-2023 12,059,395 1 12,105,932 12,105,932 12,105,932
Subtotal<br> Central Bank of Argentina Notes 12,105,932 12,105,932 12,105,932
Private securities
Corporate Bonds Vista Energy<br> Argentina SAU Class 013 -Maturity: 08-08-2024 (2) 56207 1,011,196 1 521,919 521,919 521,919
Corporate Bonds Vista Oil y Gas<br> Argentina SAU Class 015 -Maturity: 01-20-2025 (2) 56637 878,912 2 481,671 481,671 481,671
Debt Securities in Financial<br> Trusts  Confibono Series 065 Class A - Maturity: 07-20-2023 56428 116,458 2 116,483 116,483 116,483
Debt Securities in Financial<br> Trusts  Secubono Series 221 Class A - Maturity: 07-28-2023 56583 91,182 2 90,941 90,941 90,941
Debt Securities in Financial<br> Trusts  Secubono Series 222 Class A - Maturity: 08-28-2023 56660 60,975 3 75,880 75,880 75,880
Corporate Bonds YPF SA Class 043<br> -Maturity: 10-21-2023 50939 38,684 2 34,863 108,511 34,863 34,863
Debt Securities in Financial<br> Trusts  Secubono Series 219 Class A - Maturity: 04-28-2023 56366 35,329 3 24,819 24,819 24,819
Debt Securities in Financial<br> Trusts Red Surcos Series 020 Class A - Maturity: 07-15-2022 55767 83,953
Debt Securities in Financial<br> Trusts  Secubono Series 209 Class A - Maturity: 05-30-2022 55616 60,149
Corporate Bonds Santander Río<br> Bank S.A. Class 021 -Maturity: 01-26-2022 53219 51,914
Other 210,017
Subtotal<br> local private securities 1,346,576 514,544 1,346,576 1,346,576
Total<br> Other debt securities measured at cost amortized 599,594,038 46,838,533 599,594,038 599,594,038
TOTAL<br> OTHER DEBT SECURITIES 729,460,768 548,213,850 729,460,768 729,460,768

This fair value was obtained from price quotations in pesos.

| - 165 - | Delfín Jorge Ezequiel Carballo<br> Chairperson |

| --- | --- | | EXHIBIT A | | --- | | (continued) | | DETAIL OF GOVERNMENT AND PRIVATE SECURITIES | | AS OF DECEMBER 31, 2022 AND 2021 | | (Translation of the Financial Statements originally issued in Spanish – See Note 47) | | (Figures stated in thousands of pesos in constant currency as of December 31, 2022) | | | | Holdings | | | | | | | Position | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | 12/31/2022 | | | | | 12/31/2021 | | 12/31/2022 | | | | | | Name | Identification | Fair<br> Value | Fair<br> value<br> level | | Book<br> amounts | | Book<br> amounts | | Position<br> without<br> options | | Options | Final <br> position | | | Equity Instruments | | | | | | | | | | | | | | | Measured at fair value through profit or loss | | | | | | | | | | | | | | | - Local | | | | | | | | | | | | | | | Mercado Abierto Electrónico SA | | | | 3 | | 462,536 | | 400,992 | | 462,536 | | | 462,536 | | C.O.E.L.S.A | | | | 3 | | 87,563 | | 73,232 | | 87,563 | | | 87,563 | | Matba Rofex SA | | | | 3 | | 58,306 | | 61,161 | | 58,306 | | | 58,306 | | Sedesa | | | | 3 | | 21,291 | | 29,835 | | 21,291 | | | 21,291 | | AC Inversora SA | | | | 3 | | 19,583 | | 19,826 | | 19,583 | | | 19,583 | | Mercado a Término Rosario SA | | | | 3 | | 14,627 | | 14,442 | | 14,627 | | | 14,627 | | Provincanje SA | | | | 3 | | 14,506 | | 17,253 | | 14,506 | | | 14,506 | | Argencontrol SA | | | | 3 | | 478 | | 793 | | 478 | | | 478 | | San Juan Tennis Club SA | | | | 3 | | 437 | | 851 | | 437 | | | 437 | | Garantizar SGR | | | | 3 | | 10 | | 19 | | 10 | | | 10 | | Other | | | | | | | | 3,490,224 | | | | | | | Subtotal local | | | | | | 679,337 | | 4,108,628 | | 679,337 | | | 679,337 | | - Foreign | | | | | | | | | | | | | | | Banco Latinoamericano de Comercio Exterior SA | | | | 1 | | 20,957 | | 24,266 | | 20,957 | | | 20,957 | | Sociedad de Telecomunicaciones Financieras Interbancarias Mundiales | | | | 3 | | 5,646 | | 5,415 | | 5,646 | | | 5,646 | | Subtotal foreign | | | | | | 26,603 | | 29,681 | | 26,603 | | | 26,603 | | Total measured at fair value through profit or loss | | | | | | 705,940 | | 4,138,309 | | 705,940 | | | 705,940 | | TOTAL EQUITY INSTRUMENTS | | | | | | 705,940 | | 4,138,309 | | 705,940 | | | 705,940 | | TOTAL GOVERNMENT AND PRIVATE SECURITIES | | | | | | 926,903,608 | | 607,472,581 | | 929,030,908 | | | 929,030,908 |

| - 166 - | Delfín Jorge Ezequiel Carballo<br> Chairperson |

| --- | --- |

EXHIBIT B

CLASSIFICATION OF LOANS AND OTHER FINANCING
BYSITUATION AND COLLATERAL RECEIVED
AS OF DECEMBER 31, 2022 AND 2021
(Translation of the Financial Statements originally issued in Spanish – See Note 47)
(Figures stated in thousands of pesos in constant currency as of December 31, 2022)
COMMERCIAL 12/31/2022 12/31/2021
--- --- --- --- ---
In normal situation 110,649,544 164,569,197
With senior “A” collateral and counter-collateral 14,400,986 22,331,788
With senior “B” collateral and counter-collateral 18,362,596 31,494,559
Without senior collateral or counter-collateral 77,885,962 110,742,850
Subject to special monitoring 4,151,452
In observation
With senior “A” collateral and counter-collateral 2,871
With senior “B” collateral and counter-collateral 3,434,738
Without senior collateral or counter-collateral 713,843
Troubled 1,400,613 1,459,517
With senior “A” collateral and counter-collateral 71,834
With senior “B” collateral and counter-collateral 925,521 214,487
Without senior collateral or counter-collateral 403,258 1,245,030
With high risk of insolvency 806,278 224,904
With senior “A” collateral and counter-collateral 87,077 196,727
With senior “B” collateral and counter-collateral 594,265 13,431
Without senior collateral or counter-collateral 124,936 14,746
Subtotal Commercial 112,856,435 170,405,070 
| - 167 - | Delfín Jorge Ezequiel Carballo<br> Chairperson |

| --- | --- |

EXHIBIT B

(continued)

CLASSIFICATION OF LOANS AND OTHER FINANCING
BY SITUATION AND COLLATERAL RECEIVED
AS OF DECEMBER 31, 2022 AND 2021
(Translation of the Financial Statements originally issued in Spanish – See Note 47)
(Figures stated in thousands of pesos in constant currency as of December 31, 2022)
CONSUMER AND MORTGAGE 12/31/2022 12/31/2021
--- --- --- --- ---
Performing 495,262,163 532,302,833
With senior “A” collateral and counter-collateral 32,546,090 37,210,683
With senior “B” collateral and counter-collateral 29,571,729 45,245,051
Without senior collateral or counter-collateral 433,144,344 449,847,099
Low risk 3,857,703 3,767,246
With senior “A” collateral and counter-collateral 59,378 122,391
With senior “B” collateral and counter-collateral 84,565 224,462
Without senior collateral or counter-collateral 3,713,760 3,420,393
Low risk - in special treatment 29,386 121,389
With senior “B” collateral and counter-collateral 39,833
Without senior collateral or counter-collateral 29,386 81,556
Medium risk 2,642,620 2,825,822
With senior “A” collateral and counter-collateral 18,388 17,964
With senior “B” collateral and counter-collateral 68,202 116,648
Without senior collateral or counter-collateral 2,556,030 2,691,210
High risk 2,012,771 3,236,432
With senior “A” collateral and counter-collateral 22,707 41,261
With senior “B” collateral and counter-collateral 78,242 219,598
Without senior collateral or counter-collateral 1,911,822 2,975,573
Irrecoverable 898,582 1,528,819
With senior “A” collateral and counter-collateral 30,675 37,369
With senior “B” collateral and counter-collateral 142,725 372,094
Without senior collateral or counter-collateral 725,182 1,119,356
Subtotal consumer and mortgage 504,703,225 543,782,541
Total 617,559,660 714,187,611 
| - 168 - | Delfín Jorge Ezequiel Carballo<br> Chairperson |

| --- | --- |

EXHIBIT B

(continued)

CLASSIFICATION OF LOANS AND OTHER FINANCING
BY SITUATION AND COLLATERAL RECEIVED
AS OF DECEMBER 31, 2022 AND 2021
(Translation of the Financial Statements originally issued in Spanish – See Note 47)
(Figures stated in thousands of pesos in constant currency as of December 31, 2022)

This exhibit discloses the contractual figures as established by the BCRA. The reconciliation with the separated statement of financial position is listed below:

12/31/2022 12/31/2021
Loans and other financing 598,375,914 687,818,816
Added:
Allowances for loans and other financing 10,989,876 18,759,417
Adjustment  amortized cost and fair value 1,687,107 2,200,184
Debt securities of financial trust - Measured at amortized cost 308,364 347,130
Corporate bonds 1,039,008 168,471
Subtract:
Interest and other accrued items receivable from financial assets with impaired credit value (156,643 ) (192,613 )
Guarantees provided and contingent liabilities 5,316,034 5,086,206
Total computable items 617,559,660 714,187,611 
| - 169 - | Delfín Jorge Ezequiel Carballo<br> Chairperson |

| --- | --- |

EXHIBIT C

CONCENTRATION OF LOANS AND FINANCING FACILITIES
AS OF DECEMBER 31, 2022 AND 2021
(Translation of the Financial Statements originally issued in Spanish – See Note 47)
(Figures stated in thousands of pesos in constant currency as of December 31, 2022)
12/31/2022 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 22,460,061 3.64 36,296,186 5.08
50 next largest customers 40,393,012 6.54 58,470,029 8.19
100 next largest customers 32,031,601 5.19 41,199,576 5.77
Other customers 522,674,986 84.63 578,221,820 80.96
Total (1) 617,559,660 100.00 714,187,611 100.00

(1) See reconciliation in Exhibit B.

| - 170 - | Delfín Jorge Ezequiel Carballo<br> Chairperson |

| --- | --- |

EXHIBIT D

BREAKDOWNOF LOANS AND OTHER FINANCING BY TERMS

ASOF DECEMBER 31, 2022

(Translation of the Financial Statements originally issued in Spanish – See Note 47)

(Figures stated in thousands of pesos in constant currency as of December 31, 2022)

Remaining<br> terms to maturity
Item Matured Up<br> to 1<br><br> month Over<br> 1 <br><br> month and <br><br> up to 3 <br><br> months Over<br> 3 <br><br> months and<br><br> up to 6<br><br> months Over<br> 6<br><br> months and <br><br> up to <br><br> 12 months Over<br> 12 <br><br> months and <br><br> up to <br><br> 24 months Over<br> 24 <br><br> months Total
Non-financial government<br> sector 108 1,354,472 574,763 104,041 186,988 292,711 172,905 2,685,988
Financial sector 49,118 66,153 558,685 203,511 305,741 93,406 1,276,614
Non-financial<br> private sector and foreign residents 3,468,982 268,956,364 70,704,813 86,547,754 108,058,374 119,604,406 150,836,128 808,176,821
Total 3,469,090 270,359,954 71,345,729 87,210,480 108,448,873 120,202,858 151,102,439 812,139,423
BREAKDOWN OF LOANS AND OTHER FINANCING BY TERMS
---
AS OF DECEMBER 31, 2021
(Translation<br> of the Financial Statements originally issued in Spanish – See Note 47)
(Figures<br> stated in thousands of pesos in constant currency as of December 31, 2022)
Remaining<br> terms to maturity
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Item Matured Up<br> to<br><br> 1 month Over<br> 1 <br><br> month and <br><br> up to 3 <br><br> months Over<br> 3<br><br> months and <br><br> up to <br><br> 6 months Over<br> 6 <br><br> months and <br><br> up to<br><br> 12 months Over<br> 12<br><br> months and <br><br> up to <br><br> 24 months Over<br> 24 <br><br> months Total
Non-financial government<br> sector 451,655 1,215,393 948,547 2,397,187 930,619 5,943,401
Financial sector 498,131 1,297,578 72,892 252,966 1,419,953 261,144 3,802,664
Non-financial<br> private sector and foreign residents 2,942,651 265,153,863 81,191,203 93,835,298 124,168,980 146,635,855 223,720,839 937,648,689
Total 2,942,651 266,103,649 83,704,174 94,856,737 126,819,133 148,986,427 223,981,983 947,394,754
This<br> exhibit disclosures contractual future cash flows that include interests and charges to be accrued until maturity of the contracts.
---
- 171 - Delfín Jorge Ezequiel Carballo<br> Chairperson
--- ---

EXHIBIT E

DETAILEDINFORMATION ON INTERESTS IN OTHER COMPANIES

ASOF DECEMBER 31, 2022 AND 2021

(Translation of the Financial Statements originally issued in Spanish – See Note 47)

(Figures stated in thousands of pesos in constant currency as of December 31, 2022)

Information<br> of the issuer
Shares<br> of interest Data<br> from latest Financial Statements
Name Class Unit<br><br> face<br><br> value Votes<br><br> per <br><br> share Number Amount<br><br> 12/31/2022 Amount<br><br> 12/31/2021 Main<br> business<br><br> activity Year-end<br> <br><br> date /<br><br> Period Capital<br> <br><br> stock Shareholders'<br><br> equity Income<br> for<br><br> the year /<br><br> Period
In financial institutions
- Subsidiaries Foreign
Macro<br> Bank Limited Common 1 1 39,816,899 4,959,505 5,784,763 Financial<br> Institution 12-31-2022 86,501 4,959,505 191,219
Subtotal foreign 4,959,505 5,784,763
Total<br> in financial institutions subsidiaries 4,959,505 5,784,763
Total<br> in financial institutions 4,959,505 5,784,763
In complementary services<br> companies
- Subsidiaries
Local
Macro Securities SAU Common 1 1 12,885,683 9,991,335 6,183,412 Brokerage house 12-31-2022 12,886 10,066,254 3,892,181
Macro Fondos SGFCISA Common 1 1 327,183 506,499 335,605 Management company of FCI 12-31-2022 1,713 2,753,057 2,199,818
Macro Fiducia SAU Common 1 1 47,387,236 192,765 230,547 Services 12-31-2022 47,387 193,698 1,002
Argenpay SAU Common 1 1 341,200,000 936,858 954,173 Services of electronic payments 12-31-2022 341,200 938,069 (557,720 )
Fintech<br> SGR Common 1 1 119,993 72,690 66,908 Mutual guarantee<br> company 12-31-2022 480 112,240 66,342
Subtotal local 11,700,147 7,770,645
Total<br> in complementary services subsidiary companies 11,700,147 7,770,645
- Associates and joint ventures
Local
Uniones Transitorias de Empresas 642,743 530,143 Management of tax<br> services
Play Digital<br> SA Common 1 1 193,604,736 422,959 333,052 Electronic, technological and<br> computer services 09-30-2022 2,152,921 3,874,339 (2,875,476 )
Finova<br> SA Common 1 1 225,000 70,333 82,894 Informatics<br> services 09-30-2022 450 42,658 (48,233 )
Subtotal local 1,136,035 946,089
Total<br> in complementary services associates companies and join ventures 1,136,035 946,089
Total<br> in complementary services associates companies and join ventures 12,836,182 8,716,734
In other associates
-<br>Associates and joint ventures
Local
Macro Warrants SA Common 1 1 50,000 5,564 7,431 Issue of warrants 09-30-2022 1,000 111,278 (19,793 )
Subtotal local 5,564 7,431
Total<br> in other associates 5,564 7,431
Total<br> investments in other companies 17,801,251 14,508,928
- 172 - Delfín Jorge Ezequiel Carballo<br> Chairperson
--- ---

EXHIBIT F

CHANGEOF PROPERTY, PLANT AND EQUIPMENT

ASOF DECEMBER 31, 2022

(Translation of the Financial Statements originally issued in Spanish – See Note 47)

(Figures stated in thousands of pesos in constant currency as of December 31, 2022)

Original value atbeginning Total life Depreciation<br> for the fiscal year Residual value at the end of
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<br> the end the fiscal<br><br> year
Cost
Real property 93,362,070 50 595,519 122,169 1,368,237 9,384,580 (78,527 ) 20,995 2,047,203 11,332,261 83,871,396
Furniture and facilities 12,725,299 10 413,627 1,178 1,491,837 6,235,329 4 73 1,142,899 7,378,159 7,251,426
Machinery and equipment 18,288,628 5 2,097,920 290 1,052,134 12,622,197 (1,535 ) 66 2,688,300 15,308,896 6,129,496
Vehicles 2,546,557 5 449,948 176,501 (9,208 ) 2,095,982 (699 ) 115,344 254,368 2,234,307 576,489
Work in progress 3,089,819 2,709,731 (4,503,132 ) 1,296,418
Right of<br> use real property 7,314,636 5 855,968 84,912 4,089,337 48,409 1,379,202 5,420,130 2,665,562
Total<br> property, plant and equipment 137,327,009 7,122,713 385,050 (600,132 ) 34,427,425 (80,757 ) 184,887 7,511,972 41,673,753 101,790,787

CHANGEOF PROPERTY, PLANT AND EQUIPMENT

ASOF DECEMBER 31, 2021

(Translation of the Financial Statements originally issued in Spanish – See Note 47)

(Figures stated in thousands of pesos in constant currency as of December 31, 2022)

Original value atbeginning Total life Depreciation<br> for the fiscal year Residual value at the end of
Item of fiscal<br><br> year estimated<br><br>in years Increases Decreases Transfers(1) Accumulated Transfers(1) Decrease For<br> the<br><br> fiscal year At<br> the end the fiscal<br><br> year
Cost
Real property 89,603,312 50 581,468 170,251 3,347,541 7,337,992 191,404 21,520 1,876,704 9,384,580 83,977,490
Furniture and facilities 11,535,939 10 363,798 2,824 828,386 5,153,924 261 948 1,082,092 6,235,329 6,489,970
Machinery and equipment 16,111,673 5 1,242,178 52,257 987,034 10,130,556 (1,371 ) 1,298 2,494,310 12,622,197 5,666,431
Vehicles 2,448,098 5 237,035 144,842 6,266 2,010,732 348 126,745 211,647 2,095,982 450,575
Work in progress 2,465,445 4,292,728 (3,668,354 ) 3,089,819
Right of use real property 6,069,007 5 1,230,063 15,713 31,279 2,625,818 1,423 8,363 1,470,459 4,089,337 3,225,299
Total property, plant and equipment 128,233,474 7,947,270 385,887 1,532,152 27,259,022 192,065 158,874 7,135,212 34,427,425 102,899,584
(1) During<br> the fiscal year 2021, under this item transfers were made to Non-current assets held for sale.
---
- 173 - Delfín Jorge Ezequiel Carballo<br> Chairperson
--- ---

EXHIBIT F

(Continued)

CHANGEIN INVESTMENT PROPERTY

ASOF DECEMBER 31, 2022

(Translation of the Financial Statements originally issued in Spanish – See Note 47)

(Figures stated in thousands of pesos in constant currency as of December 31, 2022)

Original Value at **** Depreciation<br> for the fiscal year Residual value at
Item beginning<br><br>of fiscal<br><br> year Useful life<br><br>estimated<br><br>in years Increases Decreases Transfers Accumulated Transfers Decrease For<br> the <br><br>fiscal<br><br> year At<br> the end the end<br> of <br><br>the fiscal<br><br> year
Cost
Leased properties 449,989 50 1,156 (54,526 ) 16,256 38,437 5,268 59,961 336,658
Other investment<br> properties 495,670 50 9,872,434 19,990 (2,688,777 ) 38,545 (5,699 ) 6,465 39,311 7,620,026
Total<br> investment property 945,659 9,873,590 19,990 (2,743,303 ) 54,801 32,738 11,733 99,272 7,956,684
CHANGE IN INVESTMENT PROPERTY
---
AS OF DECEMBER 31, 2021
(Translation<br> of the Financial Statements originally issued in Spanish – See Note 47)
(Figures<br> stated in thousands of pesos in constant currency as of December 31, 2022)
Original Value at Depreciation<br> for the fiscal year Residual value at
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Item beginning<br><br> of fiscal<br><br> year Useful<br> life<br><br> estimated<br><br> in years Increases Decreases Transfers Accumulated Transfers Decrease For<br> the<br><br> fiscal <br><br>year At<br> the end the end<br> of<br><br> the fiscal<br><br> year
Cost
Leased properties 647,497 50 (197,508 ) 106,305 (96,629 ) 6,580 16,256 433,733
Other investment<br> properties 1,856,029 50 5,543 45,417 (1,320,485 ) 123,860 (94,776 ) 7,571 17,032 38,545 457,125
Total<br> investment property 2,503,526 5,543 45,417 (1,517,993 ) 230,165 (191,405 ) 7,571 23,612 54,801 890,858
(1) During the fiscal year 2022, under this item transfers were made<br> to Non-current assets held for sale.
--- ---
- 174 - Delfín Jorge Ezequiel Carballo<br> Chairperson
--- ---

EXHIBIT G

CHANGEIN INTANGIBLE ASSETS

ASOF DECEMBER 31, 2022

(Translation of the Financial Statements originally issued in Spanish – See Note 47)

(Figures stated in thousands of pesos in constant currency as of December 31, 2022)

Original Value at Depreciation<br> for the fiscal year Residual value at
Item beginning<br><br> of fiscal<br><br> year Useful<br> life<br><br> estimated<br><br> in years Increases Decreases Transfers Accumulated Transfers Decrease For<br> the<br><br> fiscal<br><br> year At<br> the end the end<br> of<br><br> the fiscal<br><br> year
Cost
Licenses 9,760,068 5 1,311,705 89,994 5,970,420 3,376 1,842,469 7,816,265 3,345,502
Other intangible<br> assets 31,600,806 5 7,218,183 33,386 (79,756 ) 19,068,239 (1,330 ) 1,314 5,663,013 24,728,608 13,977,239
Total<br> intangible assets 41,360,874 8,529,888 33,386 10,238 25,038,659 2,046 1,314 7,505,482 32,544,873 17,322,741
CHANGE IN INTANGIBLE ASSETS
---
AS OF DECEMBER 31, 2021
(Translation<br> of the Financial Statements originally issued in Spanish – See Note 47)
(Figures<br> stated in thousands of pesos in constant currency as of December 31, 2022)
Original Value at Depreciation for the fiscal year Residual value at
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Item beginning of fiscal year Useful life estimated in years Increases Decreases Transfers Accumulated Transfers Decrease For the fiscal year At the end the end of the fiscal year
Cost
Licenses 8,084,142 5 1,695,543 (19,617 ) 4,193,712 (660 ) 1,777,368 5,970,420 3,789,648
Other intangible assets 25,340,646 5 6,260,299 139 14,229,054 4,839,185 19,068,239 12,532,567
Total intangible assets 33,424,788 7,955,842 139 (19,617 ) 18,422,766 (660 ) 6,616,553 25,038,659 16,322,215
- 175 - Delfín Jorge Ezequiel Carballo<br> Chairperson
--- ---

EXHIBIT H

DEPOSIT CONCENTRATION

AS OF DECEMBER 31, 2022 AND 2021

(Translation of the Financial Statements originally issued in Spanish – See Note 47)

(Figures stated in thousands of pesos in constant currency as of December 31, 2022)

12/31/2022 12/31/2021
Number of customers Outstanding <br> balance % of total <br> portfolio Outstanding <br> balance % of total<br> portfolio
10 largest customers 153,647,145 11.93 89,303,162 7.84
50 next largest customers 133,766,370 10.39 70,276,986 6.17
100 next largest customers 62,255,164 4.83 44,088,955 3.87
Other customers 938,221,265 72.85 935,991,375 82.12
Total 1,287,889,944 100.00 1,139,660,478 100.00 
| - 176 - | Delfín Jorge Ezequiel Carballo<br> Chairperson |

| --- | --- |

EXHIBIT I

BREAKDOWN OF FINANCIAL LIABILITIES FOR RESIDUAL TERMS

AS OF DECEMBER 31, 2022

(Translation of the Financial Statements originally issued in Spanish – See Note 47)

(Figures stated in thousands of pesos in constant currency as of December 31, 2022)

Remaining terms to maturity
Item Up to 1 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
Deposits 1,179,327,347 113,538,635 19,753,491 1,902,154 12,295 36,840 1,314,570,762
From the non-financial government sector 107,790,689 3,384,960 1,019,697 4,497 112,199,843
From the financial sector 1,653,447 1,653,447
From the non-financial private sector and foreign residents 1,069,883,211 110,153,675 18,733,794 1,897,657 12,295 36,840 1,200,717,472
Derivative instruments 1,715 656 2,371
Other financial liabilities 110,595,810 422,899 382,928 735,744 1,225,622 2,830,997 116,194,000
Financing received from the Central Bank of Argentina and other financial institutions 291,911 517,458 1,616,892 44,969 2,471,230
Issued corporate bonds 11,005 10,646 22,010 3,032,952 3,076,613
Subordinated corporate bonds 2,353,327 2,353,327 4,706,653 80,264,626 89,677,933
Total 1,290,216,783 114,490,653 24,117,284 5,058,204 8,977,522 83,132,463 1,525,992,909

This exhibit discloses contractual future cash flows that include interests and charges to be accrued until maturity of the contracts.

| - 177 - | 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 47)

(Figures stated in thousands of pesos in constant currency as of December 31, 2022)

Remaining terms to maturity
Item Up to 1 month Over 1 month<br><br> and 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
Deposits 1,033,618,626 101,780,527 12,548,302 1,071,555 84,281 2,462 1,149,105,753
From the non-financial government sector 104,125,831 4,116,058 2,304,904 5,076 110,551,869
From the financial sector 1,872,336 1,872,336
From the non-financial private sector and foreign residents 927,620,459 97,664,469 10,243,398 1,066,479 84,281 2,462 1,036,681,548
Derivative instruments 4,933 4,933
Other financial liabilities 112,142,980 339,645 302,629 496,890 732,165 969,392 114,983,701
Financing received from the Central Bank of Argentina and other financial institutions 457,832 356,378 26,334 16,203 11,150 867,897
Issued corporate bonds 6,120,392 6,120,392
Subordinated corporate bonds 2,659,192 2,659,194 5,318,386 96,015,155 106,651,927
Total 1,146,219,438 102,476,550 21,661,782 4,243,842 6,145,982 96,987,009 1,377,734,603

This exhibit discloses contractual future cash flows that include interests and charges to be accrued until maturity of the contracts.

| - 178 - | Delfín Jorge Ezequiel Carballo<br> Chairperson |

| --- | --- |

EXHIBIT J

CHANGES IN PROVISIONS

AS OF DECEMBER 31, 2022

(Translation of the Financial Statements originally issued in Spanish – See Note 47)

(Figures stated in thousands of pesos in constant currency as of December 31, 2022)

Amounts at<br> beginning of Decreases Monetary effects<br> generated by
Item fiscal year Increases Reversals Charge off provisions 12/31/2022
Provisions for eventual commitments 648,549 521,115 (483,140 ) 686,524
For administrative, disciplinary and criminal penalties 972 (472 ) 500
Other 2,532,257 2,360,517 1,173,534 (1,703,429 ) 2,015,811
Total Provisions 3,181,778 2,881,632 1,173,534 (2,187,041 ) 2,702,835
CHANGES IN PROVISIONS
---
AS OF DECEMBER 31, 2021
(Translation of the Financial Statements originally issued in Spanish – See Note 47)
(Figures stated in thousands of pesos in constant currency as of December 31, 2022)
Amounts at<br> beginning of Decreases Monetary effects<br> generated by
--- --- --- --- --- --- --- --- --- --- --- --- --- ---
Item fiscal year Increases Reversals Charge off provisions 12/31/2021
Provisions for eventual commitments 50,593 704,339 2,476 (103,907 ) 648,549
For administrative, disciplinary and criminal penalties 2,112 81,094 491 80,987 (756 ) 972
Other 3,782,909 2,836,625 2,923,633 (1,163,644 ) 2,532,257
Total Provisions 3,835,614 3,622,058 491 3,007,096 (1,268,307 ) 3,181,778 
| - 179 - | Delfín Jorge Ezequiel Carballo<br> Chairperson |

| --- | --- |

EXHIBIT K

COMPOSITION OF CAPITAL STOCK

AS OF DECEMBER 31, 2022

(Translation of the Financial Statements originally issued in Spanish – See Note 47)

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 47)

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 
| - 180 - | Delfín Jorge Ezequiel Carballo<br> Chairperson |

| --- | --- |

EXHIBIT L

FOREIGN CURRENCY AMOUNTS
AS OF DECEMBER 31, 2022 AND 2021
(Translation of the Financial Statements originally issued in Spanish – See Note 47)
(Figures stated in thousands of pesos in constant currency as of December 31, 2022)
**** 12/31/2022 12/31/2021
--- --- --- --- --- --- --- --- --- --- --- --- ---
Total parent company and Total per currency ****
Items local<br>branches US dollar Euro Real Other Total
Assets
Cash and deposits in banks 200,557,826 199,395,450 715,714 39,623 407,039 228,933,093
Debt securities at fair value through profit or loss 169,514,773 169,514,773 105,261
Other financial assets 13,177,939 13,177,440 499 10,879,820
Loans and other financing 34,202,754 34,202,754 28,832,545
From the non-financial private sector and foreign residents 34,202,754 34,202,754 28,832,545
Other debt securities 45,851,095 45,851,095 57,122,492
Financial assets delivered as guarantee 4,388,959 4,388,959 3,971,220
Equity instruments at fair value through profit or loss 26,603 26,603 29,681
Investments in subsidiaries, associates and joint ventures 4,959,505 4,959,505 5,784,763
Total assets 472,679,454 471,516,579 716,213 39,623 407,039 335,658,875
Liabilities
Deposits 163,018,828 163,018,828 179,636,165
Non-financial government sector 6,163,095 6,163,095 14,953,269
Financial sector 1,399,299 1,399,299 1,481,552
Non-financial private sector and foreign residents 155,456,434 155,456,434 163,201,344
Other financial liabilities 7,900,439 7,703,468 175,733 21,238 9,317,297
Financing from the Central Bank and other financial institutions 2,397,166 2,397,166 538,425
Issued corporate bonds 3,003,738 3,003,738
Subordinated corporate bonds 72,274,386 72,274,386 81,844,664
Other non-financial liabilities 14,188 14,188 15,253
Total liabilities 248,608,745 248,411,774 175,733 21,238 271,351,804 
| - 181 - | Delfín Jorge Ezequiel Carballo<br> Chairperson |

| --- | --- |

EXHIBIT N

CREDIT ASSISTANCE TO RELATED PARTIES

AS OF DECEMBER 31, 2022 AND 2021

(Translation of the Financial Statements originally issued in Spanish – See Note 47)

(Figures stated in thousands of pesos in constant currency as of December 31, 2022)

In normal Troubled / Medium risk
Item situation Matured 12/31/2022 12/31/2021
Loans and other financing
Overdrafts 330,382 6 330,388 689,480
Without senior collateral or counter-collateral 330,382 6 330,388 689,480
Documents 55,596
With senior “A” collateral and counter-collateral 5,421
Without senior collateral or counter-collateral 50,175
Mortgage and pledge 514,164 514,164 449,150
With senior “B” collateral and counter-collateral 223,888 223,888 189,972
Without senior collateral or counter-collateral 290,276 290,276 259,178
Personal 3,100 3,100 3,497
Without senior collateral or counter-collateral 3,100 3,100 3,497
Credit cards 250,142 250,142 277,222
With senior “A” collateral and counter-collateral 310
Without senior collateral or counter-collateral 250,142 250,142 276,912
Other 3,634,566 3,634,566 7,364,545
With senior “A” collateral and counter-collateral 10,682
With senior “B” collateral and counter-collateral 56,412 56,412 44,935
Without senior collateral or counter-collateral 3,578,154 3,578,154 7,308,928
Total loans and other financial 4,732,354 6 4,732,360 8,839,490
Eventual commitments 8,805 8,805 267,597
Total 4,741,159 6 4,741,165 9,107,087
Allowances 55,787 4 55,791 127,562 
| - 182 - | Delfín Jorge Ezequiel Carballo<br> Chairperson |

| --- | --- |

EXHIBIT O

DERIVATIVE FINANCIAL INSTRUMENTS
AS OF DECEMBER 31, 2022
(Translation of the Financial Statements originally issued in Spanish – See Note 47)
(Figures stated in thousands of pesos in constant currency as of December 31, 2022)
Type<br> of<br> 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<br> 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> (1)
--- --- --- --- --- --- --- --- --- --- --- --- ---
Futures (2) Intermediation<br><br> - own account Foreign<br> currency Daily settlement<br> of differences ROFEX (over-the-counter<br> electronic market) 4 4 1 12,642,710
Forward (2) Intermediation<br> - own account Foreign<br> currency Maturity settlement of differences Over The Counter  -<br> Residents in Argentina - Non financial sector 5 2 30 1,632,334
Repo transactions Intermediation<br> - own account Local government securities With delivery of underlying asset Other countries of local 1 1 68,130,397
Options Intermediation<br> - own account Other With delivery of underlying asset Over The Counter  -<br> Residents in Argentina - Non financial sector 30 21 2,458,718

(1) Related to the valuation of the underlying traded, disclosed in absolute values.

(2) Related to compensated operations forward (OCT).

| - 183 - | Delfín Jorge Ezequiel Carballo<br> Chairperson |

| --- | --- | | EXHIBIT P | | --- | | CATEGORIES OF FINANCIAL ASSETS AND LIABILITIES | | AS OF DECEMBER 31, 2022 | | (Translation of the Financial Statements originally issued in Spanish – See Note 47) | | (Figures stated in thousands of pesos in constant currency as of December 31, 2022) | | | Amortized | | Fair<br> value | | Fair value<br><br><br> through P/L<br><br>Obligatory | | Fair value<br> hierarchy | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | Item | cost | | through OCI | | measurement | | Level 1 | | Level 2 | | Level 3 | | | Financial assets | | | | | | | | | | | | | | Cash and deposits in banks | | | | | | | | | | | | | | Cash | | 27,611,519 | | | | | | | | | | | | Financial institutions | | 212,388,708 | | | | | | | | | | | | Other | | 12,118 | | | | | | | | | | | | Debt securities at fair value<br> through profit or loss | | | | | | 196,736,900 | | 195,705,036 | | | | 1,031,864 | | Derivative financial instruments | | | | | | 42,899 | | 19,193 | | 23,706 | | | | Repo transactions | | | | | | | | | | | | | | BCRA | | 61,929,317 | | | | | | | | | | | | Other financial assets | | 43,211,490 | | | | 49,415 | | | | | | 49,415 | | Loans and other financing | | | | | | | | | | | | | | To the non-financial government<br> sector | | 2,206,935 | | | | | | | | | | | | Other financial institutions (1) | | 927,336 | | | | | | | | | | | | To the non financial private sector<br> and foreign residents | | | | | | | | | | | | | | Overdrafts | | 49,233,372 | | | | | | | | | | | | Documents | | 81,100,874 | | | | | | | | | | | | Mortgage loans | | 61,905,907 | | | | | | | | | | | | Pledge loans | | 9,581,277 | | | | | | | | | | | | Personal loans | | 142,529,651 | | | | | | | | | | | | Credit cards | | 190,779,144 | | | | | | | | | | | | Financial leases | | 1,386,801 | | | | | | | | | | | | Other (1) | | 58,724,617 | | | | | | | | | | | | Other debt securities | | 599,594,038 | | 129,866,730 | | | | 129,866,730 | | | | | | Financial assets delivered as<br> guarantee | | 30,096,021 | | | | | | | | | | | | Investments in equity instruments | | | | | | 705,940 | | 20,957 | | | | 684,983 | | Total Financial Assets | | 1,573,219,125 | | 129,866,730 | | 197,535,154 | | 325,611,916 | | 23,706 | | 1,766,262 |

(1) Includes totals provisions of sector.

| - 184 - | Delfín Jorge Ezequiel Carballo<br> Chairperson |

| --- | --- | | EXHIBIT P | | --- | | (continued) | | CATEGORIES OF FINANCIAL ASSETS AND LIABILITIES | | AS OF DECEMBER 31, 2022 | | (Translation of the Financial Statements originally issued in Spanish – See Note 47) | | (Figures stated in thousands of pesos in constant currency as of December 31, 2022) | | **** | **** | | | Fair value through P/L | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | Fair value | Obligatory | | Fair value hierarchy | | | | | Item | Amortized cost | | through OCI | measurement | | Level 1 | | Level 2 | Level 3 | | Financial liabilities | | | | | | | | | | | Deposits | | | | | | | | | | | From the non-financial government sector | | 109,952,253 | | | | | | | | | From the financial sector | | 1,653,447 | | | | | | | | | From the non-financial private sector and foreign residents | | | | | | | | | | | Checking accounts | | 149,669,947 | | | | | | | | | Savings accounts | | 422,308,756 | | | | | | | | | Time deposits and Investment accounts | | 568,401,965 | | | | | | | | | Other | | 35,903,576 | | | | | | | | | Derivative financial instruments | | | | | 2,371 | | 2,371 | | | | Other financial liabilities | | 114,905,708 | | | | | | | | | Financing received from Central Bank and other financial institutions | | 2,448,871 | | | | | | | | | Issued corporate bonds | | 3,003,738 | | | | | | | | | Subordinated corporate bonds | | 72,274,386 | | | | | | | | | Total Financial Liabilities | | 1,480,522,647 | | | 2,371 | | 2,371 | | |

| - 185 - | Delfín Jorge Ezequiel Carballo<br> Chairperson |

| --- | --- | | | EXHIBIT P | | --- | --- | | CATEGORIES OF FINANCIAL ASSETS AND LIABILITIES | | | AS OF DECEMBER 31, 2021 | | | (Translation of the Financial Statements originally issued in Spanish – See Note 47) | | | (Figures stated in thousands of pesos in constant currency as of December 31, 2022) | | | | | | | | Fair value<br><br> through P/L | | Fair value hierarchy | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | Item | Amortized<br><br> cost | | Fair value<br><br> through OCI | | Obligatory<br><br> measurement | | Level 1 | | Level 2 | | Level 3 | | | Financial assets | | | | | | | | | | | | | | Cash and deposits in banks | | | | | | | | | | | | | | Cash | | 51,860,984 | | | | | | | | | | | | Financial institutions | | 275,045,306 | | | | | | | | | | | | Other | | 12,519 | | | | | | | | | | | | Debt securities at fair value through profit or loss | | | | | | 55,120,422 | | 52,945,063 | | | | 2,175,359 | | Derivative financial instruments | | | | | | 2,524 | | 771 | | 1,753 | | | | Repo transactions | | | | | | | | | | | | | | BCRA | | 61,176,357 | | | | | | | | | | | | Other financial assets | | 50,746,847 | | | | 60,427 | | | | | | 60,427 | | Loans and other financing | | | | | | | | | | | | | | To the non-financial government sector | | 4,628,306 | | | | | | | | | | | | Other financial institutions (1) | | 2,941,876 | | | | | | | | | | | | To the non financial private sector and foreign residents | | | | | | | | | | | | | | Overdrafts | | 47,465,357 | | | | | | | | | | | | Documents | | 82,408,943 | | | | | | | | | | | | Mortgage loans | | 81,213,071 | | | | | | | | | | | | Pledge loans | | 14,727,607 | | | | | | | | | | | | Personal loans | | 190,678,438 | | | | | | | | | | | | Credit cards | | 184,981,594 | | | | | | | | | | | | Financial leases | | 931,091 | | | | | | | | | | | | Other (1) | | 77,842,533 | | | | | | | | | | | | Other debt securities | | 46,838,533 | | 501,375,317 | | | | 274,599,027 | | 226,776,290 | | | | Financial assets delivered as guarantee | | 34,470,761 | | | | | | | | | | | | Investments in equity instruments | | | | | | 4,138,309 | | 24,267 | | | | 4,114,042 | | Total Financial Assets | | 1,207,970,123 | | 501,375,317 | | 59,321,682 | | 327,569,128 | | 226,778,043 | | 6,349,828 |

(1) Includes totals provisions of sector.

| - 186 - | Delfín Jorge Ezequiel Carballo<br> Chairperson |

| --- | --- | | | EXHIBIT P | | --- | --- | | | (continued) | | CATEGORIES OF FINANCIAL ASSETS AND LIABILITIES | | | AS OF DECEMBER 31, 2021 | | | (Translation of the Financial Statements originally issued in Spanish – See Note 47) | | | (Figures stated in thousands of pesos in constant currency as of December 31, 2022) | | | | | | | Fair value<br><br> through P/L | | Fair value hierarchy | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | Item | Amortized <br><br>cost | | Fair value<br><br> through OCI | Obligatory<br><br> measurement | | Level 1 | Level 2 | | Level 3 | | Financial liabilities | | | | | | | | | | | Deposits | | | | | | | | | | | From the non-financial government sector | | 109,868,280 | | | | | | | | | From the financial sector | | 1,872,336 | | | | | | | | | From the non-financial private sector and foreign residents | | | | | | | | | | | Checking accounts | | 187,256,260 | | | | | | | | | Savings accounts | | 363,243,763 | | | | | | | | | Time deposits and Investment accounts | | 446,801,428 | | | | | | | | | Other | | 30,618,411 | | | | | | | | | Derivative financial instruments | | | | | 4,933 | | | 4,933 | | | Other financial liabilities | | 114,974,304 | | | | | | | | | Financing received from Central Bank and other financial institutions | | 852,127 | | | | | | | | | Issued corporate bonds | | 5,825,893 | | | | | | | | | Subordinated corporate bonds | | 81,844,664 | | | | | | | | | Total Financial Liabilities | | 1,343,157,466 | | | 4,933 | | | 4,933 | |

| - 187 - | Delfín Jorge Ezequiel Carballo<br> Chairperson |

| --- | --- | | | EXHIBIT Q | | --- | --- | | BREAKDOWN OF STATEMENT OF INCOME | | | AS OF DECEMBER 31, 2022 AND 2021 | | | (Translation of the Financial Statements originally issued in Spanish – See Note 47) | | | (Figures stated in thousands of pesos in constant currency as of December 31, 2022) | | | | Net financial Income/(Loss) | | | | | | | --- | --- | --- | --- | --- | --- | --- | | | Mandatory measurement | | | | | | | Items | 12/31/2022 | | | 12/31/2021 | | | | For measurement of financial assets at fair value through profit or loss | | | | | | | | Gain from government securities | | 32,908,643 | | | 34,786,176 | | | Gain from private securities | | 737,035 | | | 686,775 | | | Gain from derivative financial instruments | | | | | | | | Forward transactions | | 752,927 | | | | | | Loss from other financial assets | | (40,622 | ) | | (31,121 | ) | | Gain from equity instruments at fair value through profit or loss | | 1,551,421 | | | 301,958 | | | Gain from sales or decreases of financial assets at fair value (1) | | 2,235,092 | | | 1,304,746 | | | For measurement of financial liabilities at fair value through profit or loss | | | | | | | | Loss from derivative financial instruments | | | | | | | | Forward transactions | | | | | (182,453 | ) | | Total | | 38,144,496 | | | 36,866,081 | | | (1) | Net amount of reclassifications to profit of instruments classified at fair value through other comprehensive income that were derecognized<br>or charged during the fiscal year. | | --- | --- |

| - 188 - | Delfín Jorge Ezequiel Carballo<br> Chairperson |

| --- | --- |

EXHIBIT Q

(Continued)

BREAKDOWN OF STATEMENT OF INCOME

ASOF DECEMBER 31, 2022 AND 2021

(Translation of the Financial Statements originally issued in Spanish – See Note 47)

(Figures stated in thousands of pesos in constant currency as of December 31, 2022)

Net financial income/(Loss)
Interest and adjustment for the application of the effective interest rate of financial assets measured at amortized cost 12/31/2022 12/31/2021
Interest income
for cash and bank deposits 400,116 25,671
for government securities 208,959,332 14,675,565
for private securities 193,000 589,973
for loans and other financing
Non-financial public sector 1,513,955 3,536,708
Financial sector 535,913 1,316,785
Non-financial private sector
Overdrafts 25,399,139 15,724,479
Documents 25,572,829 18,258,697
Mortgage loans 37,615,857 29,769,779
Pledge loans 2,976,314 2,071,559
Personal loans 89,374,385 93,771,253
Credit cards 40,706,936 28,395,069
Financial leases 344,665 164,409
Other 26,883,876 30,173,720
for repo transactions
Central Bank of Argentina 12,635,845 16,524,973
Other financial institutions 648,984 102,614
Total 473,761,146 255,101,254
Interest expenses
for Deposits
Non-financial Private sector
Checking accounts (15,477,783 ) (2,563,967 )
Saving accounts (3,807,897 ) (2,409,161 )
Time deposits and investments accounts (280,598,419 ) (169,981,631 )
for financing received from Central Bank of Argentina and other financial institutions (505,837 ) (304,567 )
for repo transactions
Other financial institutions (975,643 ) (573,796 )
for other financial liabilities (93,818 ) (41,779 )
for issued corporate bonds (259,358 ) (1,679,267 )
for other subordinated corporate bonds (4,628,154 ) (6,321,129 )
Total (306,346,909 ) (183,875,297 ) 
| - 189 - | Delfín Jorge Ezequiel Carballo<br> Chairperson |

| --- | --- |

EXHIBIT Q

(Continued)

BREAKDOWN OF STATEMENT OF INCOME

AS OF DECEMBER 31, 2022 AND 2021

(Translation of the Financial Statements originally issued in Spanish – See Note 47)

(Figures stated in thousands of pesos in constant currency as of December 31, 2022)

Interest and adjustment for the application of the effective interest rate of financial assets measured at fair Income of the<br><br> fiscal year Other<br><br> comprehensive<br><br> income Income of the<br><br> fiscal year Other<br><br> comprehensive<br><br> income
value through other comprehensive income 12/31/2022 12/31/2022 12/31/2021 12/31/2021
for debt government securities 138,144,192 (2,780,142 ) 183,460,212 1,312,537
Total 138,144,192 (2,780,142 ) 183,460,212 1,312,537
Income of the fiscal year
--- --- --- --- --- --- ---
Items 12/31/2022 12/31/2021
Commissions income
Commissions related to obligations 42,578,518 39,656,048
Commissions related to credits 423,581 317,795
Commissions related to loans commitments and financial guarantees 10,385 11,711
Commissions related to securities value 610,305 552,621
Commissions to credit cards 25,186,364 24,313,013
Commissions to insurances 4,226,128 4,450,781
Commissions related to trading and foreign exchange transactions 1,586,074 1,777,504
Total 74,621,355 71,079,473
Commissions expenses
Commissions related to trading with debt securities (1 )
Commissions related to trading and foreign exchange transactions (249,774 ) (298,075 )
Other
Commissions paid ATM exchange (3,795,993 ) (3,940,669 )
Checkbooks commissions and clearing houses (1,385,594 ) (1,231,636 )
Credit cards and foreign trade commissions (714,174 ) (717,934 )
Total (6,145,536 ) (6,188,314 ) 
| - 190 - | Delfín Jorge Ezequiel Carballo<br> Chairperson |

| --- | --- |

EXHIBIT R

VALUE ADJUSTMENT FOR CREDIT LOSSES - ALLOWANCES FOR UNCOLLECTIBILITY RISK

AS OF DECEMBER 31, 2022

(Translation of the Financial Statements originally issued in Spanish – See Note 47)

(Figures stated in thousands of pesos in constant currency as of December 31, 2022)

Movements<br> between stages of the fiscal year
ECL<br> of remanent life of financial asset
Item Amounts<br> at<br> beginning <br> of the fiscal<br> year ECL<br> of the next <br> 12 months Financial<br><br> instruments with<br> a significant<br> increase in credit<br> risk Financial<br><br> instruments<br> with<br> impairment Monetary<br> effect <br> generated by <br> provisions 12/31/2022
Other financial assets 51,518 83,398 (43,875 ) 91,041
Loans and other financing 18,759,417 2,353,232 (2,457,152 ) 1,334,983 (9,000,604 ) 10,989,876
Other<br> financial institutions 7,111 4,355 (3,325 ) 8,141
To the<br> non-financial private sector and foreign residents
Overdrafts 1,379,210 263,130 4,475 (555,527 ) (564,556 ) 526,732
Documents 1,873,117 (36,800 ) (457,508 ) 19,672 (837,807 ) 560,674
Mortgage<br> loans 3,892,318 283,428 (2,423,987 ) 853,110 (1,410,953 ) 1,193,916
Pledge<br> loans 240,677 93,647 (17,479 ) (13,082 ) (114,124 ) 189,639
Personal<br> loans 4,831,973 993,152 528,409 547,543 (2,753,411 ) 4,147,666
Credit<br> cards 3,146,400 664,224 532,864 319,120 (1,896,823 ) 2,765,785
Financial<br> leases 28,477 13,196 36 (4,696 ) (15,377 ) 21,636
Other 3,360,134 74,900 (623,962 ) 168,843 (1,404,228 ) 1,575,687
Eventual commitments 648,549 424,385 95,930 (482,340 ) 686,524
Other debt<br> securities 1,057 387 (648 ) 796
Total<br> allowances 19,460,541 2,861,402 (2,361,222 ) 1,334,983 (9,527,467 ) 11,768,237

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 47)

(Figures stated in thousands of pesos in constant currency as of December 31, 2022)

Movements<br> between stages for the fiscal year
ECL<br> of remanent life of financial asset
Item Amounts<br> at<br> beginning of<br> the fiscal<br> year ECL<br> of the next 12<br> months Financial<br><br> instruments with<br> a significant<br> increase in credit<br> risk Financial<br><br> instruments<br> with<br> impairment Monetary<br> effect <br> generated by <br> provisions 12/31/2021
Other financial assets 55,651 17,093 (21,226 ) 51,518
Loans and other financing 29,472,082 (4,751,539 ) 988,051 2,782,390 (9,731,567 ) 18,759,417
Other<br> financial institutions 48,844 (30,322 ) (11,411 ) 7,111
To the<br> non-financial private sector and foreign residents
Overdrafts 2,016,222 236,806 133,387 (508,956 ) (498,249 ) 1,379,210
Documents 1,571,917 509,591 350,713 14,226 (573,330 ) 1,873,117
Mortgage<br> loans 2,213,852 96,637 2,097,718 353,688 (869,577 ) 3,892,318
Pledge<br> loans 395,007 (5,495 ) (77,549 ) 66,956 (138,242 ) 240,677
Personal<br> loans 8,367,154 (1,610,238 ) (648,480 ) 2,110,841 (3,387,304 ) 4,831,973
Credit<br> cards 9,964,088 (3,449,300 ) (1,518,902 ) 879,522 (2,729,008 ) 3,146,400
Financial<br> leases 29,542 19,834 (8 ) (12,572 ) (8,319 ) 28,477
Other 4,865,456 (519,052 ) 651,172 (121,315 ) (1,516,127 ) 3,360,134
Eventual commitments 50,593 600,419 88,726 (91,189 ) 648,549
Other debts<br> securities 3,949 (2,108 ) (784 ) 1,057
Total<br> allowances 29,582,275 (4,136,135 ) 1,076,777 2,782,390 (9,844,766 ) 19,460,541 
| - 191 - | Delfín Jorge Ezequiel Carballo<br> Chairperson |

| --- | --- |

EARNING DISTRIBUTION PROPOSAL

FOR THE FISCAL YEAR

ENDED DECEMBER 31, 2022

(Translation of Financial Statements originally issued in Spanish - See Note 48 to the consolidated Financial Statements)

(Figures stated in thousands of pesos)

UNAPPROPRIATED RETAINED EARNINGS (1) 203,171,939
To legal retained reserve (8,607,704 )
Adjustments (Point 2.3. of BCRA rules regarding "Earnings distribution") (2) (6,145,736 )
SUBTOTAL 1 188,418,499
Adjustments (Point 2.1. of BCRA rules regarding “Earnings distribution") (2) (816,164 )
SUBTOTAL 2 187,602,335
DISTRIBUTABLE AMOUNT (3) 187,602,335
(1) Includes normative reserve for future distribution of earnings amounting to 159,996,814 (See aditionally Note 34).
--- ---
(2) See note 43 to the Separate Financial Statements.
(3) The earnings distribution will be admitted, provided that the minimum cash requirement, on average (in pesos or foreign currency) is lower be shorter than the closing date position or the projected one, considering the earnings distribution effects.

The Board of Directors will evaluate in due time the proposed use to be given to profit, which shall be submitted for Shareholders’ Meeting consideration.

Daniel H. Violatti Gustavo A. Manriquez Delfín Jorge
Accounting General management Ezequiel Carballo
Manager Chairperson 
| - 192 - | 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: May 24, 2023

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

Report a Problem

Category
Description
Email (optional, for follow-up)