Report of Foreign Issuer (6-k)

Date : 08/23/2018 @ 6:04AM
Source : Edgar (US Regulatory)
Stock : Banco Macro S.A. Adr (Representing Ten Class B ) (BMA)
Quote : 48.5  2.33 (5.05%) @ 4:02PM

Report of Foreign Issuer (6-k)

 

 

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C.  20549

 

 

 

FORM 6-K

REPORT OF FOREIGN PRIVATE ISSUER

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

SECURITIES EXCHANGE ACT OF 1934

 

August 22, 2018

  

 

 

Commission File Number: 001-32827

  

 

 

MACRO BANK INC.

(Translation of registrant’s name into English)

 

 

 

Sarmiento 447

Buenos Aires C1 1041

Tel: 54 11 5222 6500

 

(Address of registrant’s principal executive offices)

  

 

 

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

 

Form 20-F x Form 40-F ¨

 

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

 

Yes ¨ No x

 

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

 

Yes ¨ No x

 

 

 

 

 

  2Q18 Earnings Release

Banco Macro Announces Results for the Second Quarter of 2018

 

Buenos Aires, Argentina, August 22, 2018 – Banco Macro S.A. (NYSE: BMA; BCBA: BMA) (“Banco Macro” or “BMA” or the “Bank”) announced today its results for the second quarter ended June 30, 2018 (“2Q18”). All figures are in Argentine pesos (Ps.)

 

As from FY2018 Banco Macro results are reported in accordance with Communication “A” 6114 of the Central Bank of Argentina (Convergence of accounting standards to IFRS -International Financial Reporting Standards-). Figures for FY2017 have been restated in accordance with IFRS and some items have been reclassified in order to make comparisons between periods possible.

 

Summary

 

The Bank’s net income totaled Ps.3.1 billion in 2Q18. This result was 40% higher than the Ps.2.2 billion posted a year ago. In 2Q18, the accumulated annualized return on average equity (“ROAE”) and the accumulated annualized return on average assets (“ROAA”) were 27.2 % and 5.7%, respectively.

 

• In 2Q18, Banco Macro’s financing to the private sector grew 6% or Ps.8.9 billion quarter over quarter (“QoQ”) totaling Ps.151.3 billion and increased 44% or Ps.46.3 billion year over year (“YoY”). In the quarter, growth was driven by commercial loans, among which Documents and Others stand out, which grew 7% and 9% QoQ, respectively. Meanwhile within consumer loans, mortgage loans, personal loans and credit cards rose 16%, 7% and 7% QoQ, respectively.

 

• In 2Q18, the accumulated efficiency ratio reached 42.4%, better than the 45% posted in 2Q17.

 

• In 2Q18, Banco Macro’s total deposits grew 20% QoQ, totaling Ps.179.5 billion and representing 81% of the Bank’s total liabilities. Private sector deposits grew 18% QoQ.

 

• Banco Macro continued showing a strong solvency ratio, with excess capital of Ps.41.5 billion 27.6% regulatory capital ratio – Basel III and 21.5% Tier 1 Ratio. In addition, the Bank’s liquid assets remained at an adequate level, reaching 52.3% of its total deposits in 2Q18.

 

• In 2Q18, the Bank’s non-performing to total financing ratio was 1.38% and the coverage ratio reached 149.3%. Banco Macro continued showing outstanding asset quality metrics, with one of the lowest non-performing to total financing ratio in the industry.

  

 

2Q18 Earnings Release Conference Call    IR Contacts in Buenos Aires :
     
Thursday, August 23, 2018   Jorge Scarinci
Time: 11:00 a.m. Eastern Time | 12:00 p.m. Buenos Aires Time   Chief Financial Officer
 
To participate, please dial: Webcast Replay: click here Nicolás A. Torres
Argentina Toll Free: Investor Relations
(0800) 444 2930 Available from 08/23/2018 through
Participants Dial In (Toll Free): 09/06/2018
+1 (844) 839 2185   Phone: (54 11) 5222 6682
Participants International Dial In:   E-mail: investorelations@macro.com.ar
+1 (412) 317 2506  
   
Conference ID: Banco Macro   Visit our website at: www.ri-macro.com.ar
Webcast: click here  

 

With the presence of: Jorge Pablo Brito (Vice Chairman), Gustavo Manriquez (CEO) and Jorge Scarinci (CFO).

 

   

2Q18 Earnings Release

Disclaimer

 

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

 

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

 

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

 

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

 

  2

2Q18 Earnings Release

Results

 

Earnings per outstanding share were Ps.4.65 in 2Q18, 24% higher than 2Q17.

 

EARNINGS PER SHARE   MACRO Consolidated     Variation  
In MILLION $   2Q17     3Q17     4Q17     1Q18     2Q18     QoQ     YoY  
                                           
Net income -Parent Company- (M $)     2,223.5       2,735.3       3,101.3       3,542.1       3,115.7       -12 %     40 %
Average # of shares outstanding (M)     594.3       668.2       669.7       669.7       669.7       0 %     13 %
Book value per avg. Outstanding share ($)     65.8       65.1       69.8       75.1       75.2       0 %     14 %
Shares Outstanding (M)     658.6       669.7       669.7       669.7       669.7       0 %     2 %
Earnings per avg.  outstanding share ($)     3.74       4.09       4.63       5.29       4.65       -12 %     24 %
                                                         
Book value per avg. issued ADS (USD)     39.64       37.59       37.18       37.28       26.06       -30 %     -34 %
Earnings per avg. outstanding ADS (USD)     2.25       2.36       2.47       2.64       1.61       -39 %     -29 %

 

Banco Macro’s 2Q18 net income of Ps.3.1 billion was 12% or Ps.428 million lower than the previous quarter and 40% or Ps.894 billion higher YoY. This result represented an accumulated ROAE and ROAA of 27.2 % and 5.7% respectively.

 

Net operating income (before G&A and personnel expenses) was Ps.10.7 billion in 2Q18, increasing 33% or Ps.2.7 billion YoY.

 

Operating income (after G&A and personnel expenses) was Ps.4.3 billion in 2Q18, 25% or Ps.856 million higher than a year ago.

 

It is important to emphasize that this result was obtained with a leverage of 5.4x assets to equity ratio.

 

INCOME STATEMENT   MACRO Consolidated     Variation  
In MILLION $   2Q17     3Q17     4Q17     1Q18     2Q18     QoQ     YoY  
                                           
Net Interest Income     5,469.9       6,085.8       7,405.4       7,941.1       9,092.8       15 %     66 %
Net fee income     1,494.3       1,579.4       1,412.0       1,650.6       1,906.6       16 %     28 %
Subtotal (Net Interest Income + Net Fee Income)     6,964.2       7,665.2       8,817.4       9,591.7       10,999.4       15 %     58 %
Net Income from financial instruments at fair value through P&L     124.6       211.1       199.1       249.2       -46.3       -119 %     -137 %
Income from assets at amortized cost     32.0       18.4       -26.1       -2.9       -       -100 %     -100 %
Differences in quoted prices of gold and foreign currency     365.2       578.0       255.0       150.6       -1,012.3       -772 %     -377 %
Other operating income     1,068.2       1,007.2       1,144.7       1,304.0       1,375.7       5 %     29 %
Provision for loan losses     466.6       343.1       421.8       566.8       571.3       1 %     22 %
Net Operating Income     8,087.6       9,136.8       9,968.3       10,725.8       10,745.2       0 %     33 %
Employee benefits     1,861.1       1,928.3       2,185.4       2,017.7       2,443.1       21 %     31 %
Administrative expenses     1,100.5       1,186.6       1,394.2       1,402.0       1,549.5       11 %     41 %
Depreciation and impairment of assets     131.7       145.0       179.5       162.9       172.6       6 %     31 %
Other operating expenses     1,587.8       1,647.6       2,064.0       2,029.2       2,317.6       14 %     46 %
Operating Income     3,406.5       4,229.3       4,145.2       5,114.0       4,262.4       -17 %     25 %
Result from associates & joint ventures     29.7       45.9       108.3       75.4       145.1       92 %     389 %
Result before taxes from continuing operations     3,436.2       4,275.2       4,253.5       5,189.4       4,407.5       -15 %     28 %
Income tax     1,192.9       1,519.7       1,123.2       1,624.9       1,270.7       -22 %     7 %
Net income from continuing operations     2,243.3       2,755.5       3,130.3       3,564.5       3,136.8       -12 %     40 %
                                                         
Net Income of the period     2,243.3       2,755.5       3,130.3       3,564.5       3,136.8       -12 %     40 %
Net income of the period attributable to parent company     2,223.6       2,735.1       3,101.3       3,542.1       3,115.7       -12 %     40 %
Net income of the period atributable to minority interest     19.7       20.4       29.0       22.4       21.1       -6 %     7 %

 

  3

2Q18 Earnings Release

The Bank’s 2Q18 net interest income totaled Ps.9.1 billion, 15% or Ps.1.2 billion higher than in 1Q18 and 66% or Ps.3.5 higher YoY.

 

In 2Q18 interest income totaled Ps.13.6 billion, 20% or Ps.2.3 billion higher than in 1Q18 and 74% or Ps.5.8 billion higher than in 2Q17.

 

Income from interest on loans and other financing totaled Ps.10.4 billion, 13% or Ps.1.2 billion higher compared with the previous quarter and 59% or Ps.3.9 billion higher than a year ago.

 

In 2Q18 income from government and private securities increased 49% or Ps.1.1 billion QoQ and 162% or Ps.2.0 billion compared with the same period of last year. 98% of this result is explained by income from government and private securities through other comprehensive income (LEBAC’s) and the remaining 2% is explained by income of government and private securities at amortized cost.

 

In 2Q18 Differences in quoted prices of gold and foreign currency decreased Ps.1.2 billion, totaling a Ps.1 billion loss, due to the 43% argentine peso depreciation against the US dollar and the Bank’s short dollar position.

 

INTEREST INCOME   MACRO Consolidated     Variation  
In MILLION  $   2Q17     3Q17     4Q17     1Q18     2Q18     QoQ     YoY  
                                           
Interest on Cash and due from Banks     0.8       6.1       6.7       3.0       2.0       -33 %     150 %
Interest from government securities     1,167.8       1,606.4       2,005.6       2,087.0       3,144.1       51 %     169 %
Interest from private securities     50.7       52.3       -0.2       52.2       50.2       -4 %     -1 %
Interest on loans and other financing                                                        
To the financial sector     98.9       125.5       177.7       166.9       204.5       23 %     107 %
To the public non financial sector     0.0       0.0       0.0       0.0       0.0       0 %     0 %
Interest on overdrafts     622.3       680.0       753.8       780.6       961.7       23 %     55 %
Interest on mortgages loans     194.8       208.8       228.5       578.6       785.0       36 %     303 %
Interest on pledged loans     116.7       133.5       141.8       148.8       142.6       -4 %     22 %
Interest on personal loans     3,394.8       3,774.3       4,197.5       4,574.9       5,021.2       10 %     48 %
Interest on credit cards loans     1,085.8       1,064.3       1,212.3       1,356.2       1,545.2       14 %     42 %
Interest on financial leases     24.5       29.3       31.4       33.9       33.8       0 %     38 %
Interest on other loans     977.4       1,172.3       1,586.6       1,519.5       1,680.7       11 %     72 %
Interest on Repos                                                        
From the BCRA     79.6       15.1       71.4       15.6       7.1       -54 %     -91 %
Other financial institutions     6.0       1.6       28.1       19.5       38.7       98 %     545 %
Total Interest income     7,820.3       8,869.5       10,441.2       11,336.8       13,616.8       20 %     74 %
                                                         
Income from Interest on loans     6,515.3       7,188.0       8,329.6       9,159.5       10,374.7       13 %     59 %

 

The Bank’s 2Q18 interest expense totaled Ps.4.5 billion, increasing 33% (Ps.1.1 billion) compared to the previous quarter and 92% (Ps.2.2 billion) compared to 2Q17.

 

In 2Q18, interest on deposits represented 86% of the Bank’s total interest expense, increasing 29% or Ps.869 million QoQ. This increase was mainly driven by a 3p.p increase in the average interest rate on time deposits and a 7% increase in the average volume of time deposits. On a yearly basis, interest on deposits increased 81% or Ps.1.7 billion.

 

Expenses related to interest on corporate bonds increased 110% or Ps.222 million, due to the accrual of interest of Series “C” Notes (issued in April 2018), interest expenses related to subordinated bonds in dollars increased 25% or Ps.35 million due to the argentine peso depreciation.

 

  4

2Q18 Earnings Release

INTEREST EXPENSE   MACRO Consolidated     Variation  
In MILLION $   2Q17     3Q17     4Q17     1Q18     2Q18     QoQ     YoY  
                                           
Deposits                                                        
Interest on checking accounts     0.0       0.0       0.0       0.0       0.0       0 %     0 %
Interest on saving accounts     26.1       30.7       37.1       53.6       64.2       20 %     146 %
Interest on time deposits     2,114.6       2,352.0       2,618.8       2,955.9       3,813.8       29 %     80 %
Interest on other financing from BCRA and financial inst.     7.4       17.2       14.5       13.4       21.6       61 %     192 %
Repos                                                        
Other financial institutions     11.0       51.8       30.8       31.0       24.3       -22 %     121 %
Interest on corporate bonds     90.2       202.7       203.3       200.8       422.2       110 %     368 %
Interest on subordinated bonds     99.2       122.3       126.8       139.1       174.4       25 %     76 %
Interest on other financial liabilities     1.9       6.9       4.6       1.9       3.5       84 %     84 %
Total financial expense     2,350.4       2,783.6       3,035.9       3,395.7       4,524.0       33 %     92 %
                                                         
Expenses from interest on deposits     2,140.7       2,382.7       2,655.9       3,009.5       3,878.0       29 %     81 %

 

As of 2Q18, the Bank’s accumulated net interest margin was 15.2%, higher than the 15.1% posted in 1Q18 and the 14.4% posted in 2Q17.

 

ASSETS & LIABILITIES PERFORMANCE   MACRO Consolidated  
In MILLON $   2Q17     3Q17     4Q17     1Q18     2Q18        
Yields & rates in annualized nominal %   AVERAGE
BALANCE
    INT     AVERAGE
BALANCE
    INT     AVERAGE
BALANCE
    INT     AVERAGE
BALANCE
    INT     AVERAGE
BALANCE
    INT  
Interest-earning assets                                                            
Cash and Deposits in Banks     30,395.0       0.0 %     37,902.5       0.1 %     43,217.9       0.1 %     32,708.3       0.0 %     35,266.5       0 %
Goverment & Securities at fair value trhough P&L     1,459.9       6.7 %     541.8       17.9 %     4,041.2       18.7 %     1,059.6       64.4 %     949.5       -2.0 %
Loans & Other Financing                                                                                
Public Sector     792.6       16.5 %     1,685.6       27.3 %     1,561.5       36.8 %     1,881.5       30.2 %     1,937.2       32.2 %
Financial Sector     1,709.3       23.2 %     2,771.0       20.4 %     2,371.3       29.7 %     3,228.7       11.8 %     3,624.4       21.5 %
Private Sector     93,425.8       27.4 %     112,057.0       24.5 %     125,248.9       25.3 %     133,915.6       26.9 %     145,808.9       27.7 %
Other debt securities     18,943.9       27.4 %     33,521.2       21.2 %     66,911.3       12.0 %     34,532.5       25.5 %     40,264.8       31.3 %
Other interest-earning assets     8,979.0       4.4 %     4,807.3       3.0 %     6,366.2       7.2 %     8,756.8       2.9 %     9,260.2       1.7 %
Total interest-earning assets     155,705.5       20.5 %     193,286.4       18.5 %     249,718.3       16.9 %     216,083.0       21.6 %     237,111.5       23.0 %
                                                                                 
Non interest-earning assets     8,993.6               8,737.9               11,147.9               10,718.4               10,792.3          
Total Average Assets     164,699.1               202,024.3               260,866.2               226,801.4               247,903.8          
                                                                                 
Interest-bearing liabilities                                                                                
Deposits                                                                                
Public Sector     11,541.3       7.3 %     15,132.1       5.1 %     10,256.4       7.0 %     13,865.7       7.1 %     14,499.7       8.4 %
Financial Sector     56.0       0.0 %     69.5       0.0 %     77.5       0.0 %     97.2       0.0 %     111.2       0.0 %
Private Sector     103,690.9       7.5 %     117,021.9       7.6 %     121,986.5       8.2 %     130,993.4       8.8 %     143,472.9       10.2 %
BCRA and other financial institutions     304.1       6.3 %     2,047.8       2.3 %     1,630.3       1.8 %     736.5       6.9 %     1,058.0       7.6 %
Corporate bonds     1,687.7       21.4 %     4,808.4       16.7 %     4,669.1       17.3 %     4,809.4       16.9 %     7,746.3       21.9 %
Subordinated bonds     6,304.9       6.5 %     6,976.4       7.6 %     7,180.9       7.6 %     7,986.8       7.1 %     9,474.3       7.5 %
Other interest-bearing liabilities     268.5       26.1 %     292.4       62.6 %     1,015.7       18.7 %     601.1       20.9 %     347.6       35.0 %
Total interest-bearing liabilities     123,853.4       7.6 %     146,348.5       7.7 %     146,816.4       8.4 %     159,090.1       8.8 %     176,710.0       10.4 %
                                                                                 
Total non interest-bearing liab. & equity     40,845.7               55,675.8               114,049.8               67,711.3               71,193.8          
                                                                                 
Total Average Liabilities & Equity     164,699.1               202,024.3               260,866.2               226,801.4               247,903.8          
                                                                                 
Assets Performance             7,942.7               9,029.0               10,632.9               11,522.3               13,593.1  
Liabilities Performance             2,354.9               2,832.3               3,112.3               3,459.7               4,598.9  
Net Interest Income             5,587.8               6,196.7               7,520.6               8,062.6               8,994.2  
Total interest-earning assets             155,705.5               193,286.4               249,718.3               216,083.0               237,111.5  
Net Interest Margin (NIM)             14.4 %             12.7 %             11.9 %             15.1 %             15.2 %

 

In 2Q18, Banco Macro’s net fee income totaled Ps.1.9 billion, 16% or Ps.256 million higher than 1Q18, and 28% or Ps.412 million higher than 2Q17.

 

In the quarter, fee income totaled Ps.2.1 billion, 15% or Ps.281 million higher than in 1Q18. Fees charged on deposit accounts stand out, with a 17% (Ps.188 million) increase, also collection services fees increased 21% or Ps.59 million QoQ. On a yearly basis, fee income increased 28% or Ps.457 million.

 

In the quarter, total fee expenses increased 13% or Ps.25 million. On a yearly basis, fee expenses increased 27% or Ps.44 million.

 

  5

2Q18 Earnings Release

NET FEE INCOME   MACRO Consolidated     Variation  
In MILLION $   2Q17     3Q17     4Q17     1Q18     2Q18     QoQ     YoY  
                                           
Fee charged on deposit accounts     968.5       1,027.2       853.0       1,082.0       1,270.4       17 %     31 %
Debit and credit card fees     61.9       69.4       71.2       81.0       85.2       5 %     38 %
Fees on collection services     256.6       266.8       275.0       279.8       338.7       21 %     32 %
Insurance fees     149.5       156.1       164.2       177.6       175.8       -1 %     18 %
Fees on private securities     97.0       101.1       100.4       99.4       107.6       8 %     11 %
Credit related fees     1.1       0.8       0.8       0.4       0.1       -75 %     -91 %
Fees related to transferable securities     16.6       16.0       20.6       21.8       25.5       17 %     54 %
Other fees related to foreign trade     37.1       44.3       39.7       41.4       50.8       23 %     37 %
Other     71.4       73.7       74.0       52.1       62.1       19 %     -13 %
Total fee income     1,659.7       1,755.4       1,598.9       1,835.5       2,116.2       15 %     28 %
                                                         
Total fee expense     165.4       178.7       184.2       184.9       209.6       13 %     27 %
                                                         
Net fee income     1,494.3       1,576.7       1,414.7       1,650.6       1,906.6       16 %     28 %

 

In the quarter Other Operating Income increased 5% or Ps.72 million, with fees charged on debit and credit cards and Other fees standing out with 9% and 51% increases respectively. On a yearly basis Other Operating Income increased 29% or Ps.308 million.

 

OTHER OPERATING INCOME   MACRO consolidated     Variation  
IN MILLION $   2T 17     3T 17     4T 17     1T 18     2T 18     QoQ     YoY  
                                           
Credit and debit cards     627.2       692.0       762.3       735.5       803.8       9 %     28 %
Lease of safe deposit boxes     42.7       44.5       49.0       49.5       50.5       2 %     18 %
Other service related fees     166.9       181.5       218.2       227.9       241.1       6 %     44 %
Sale of real estate and other non-financial assets     10.3       2.9       6.7       109.9       27.2       -75 %     164 %
Other adjustments and interest from other receivables     15.8       23.5       16.2       39.9       40.2       1 %     154 %
Initial recognition of loans     0.0       -41.0       -35.0       22.8       33.7       48 %     0 %
Sale of property, plant and equipment     0.8       0.1       2.6       0.7       0.8       14 %     0 %
Others     204.5       103.9       124.5       117.8       178.4       51 %     -13 %
Other Operating Income     1,068.2       1,007.4       1,144.5       1,304.0       1,375.7       5 %     29 %

 

In 2Q18 Banco Macro’s administrative expenses plus employee benefits totaled Ps.4 billion, 17% or Ps.573 million higher than the previous quarter. On a yearly basis administrative expenses plus employee benefits increased 35% or Ps.1 billion, due to higher expenses related to employee benefits (salary increases), maintenance, conservation and repair expenses and others.

 

Employee benefits increased 21% or Ps.425 million QoQ, mainly as a result of IFRS adoption related to vacations and social security contributions and the salary increase agreed with the Union. Employee benefits increased 31% or Ps.582 million YoY.

 

As of June 2018, the accumulated efficiency ratio reached 42.4%, lower than the 44.9% posted in 2Q17. In 2Q18 expenses (employee benefits + G&A expenses + depreciation and impairment of assets + other operating expenses) increased 31%, while income (net interest income + net fee income + differences in quoted prices of gold and foreign currency + other operating income) increased 39%.

 

  6

2Q18 Earnings Release

PERSONNEL & ADMINISTRATIVE EXPENSES   MACRO Consolidated     Variation  
In MILLION $   2Q17     3Q17     4Q17     1Q18     2Q18     QoQ     YoY  
                                           
Employee benefits     1,861.1       1,928.3       2,185.4       2,017.7       2,443.1       21 %     31 %
Administrative Expenses     1,100.5       1,186.6       1,394.2       1,402.0       1,549.5       11 %     41 %
Taxes     177.5       179.9       206.4       226.2       223.6       -1 %     26 %
Maintenance, conservation fees     132.4       150.6       193.0       166.3       207.8       25 %     57 %
Directors & statutory auditors´fees     98.6       121.5       138.2       162.5       147.4       -9 %     49 %
Security services     122.2       135.8       157.6       147.3       167.5       14 %     37 %
Electricity & Communications     83.9       90.6       93.2       115.4       121.9       6 %     45 %
Other professional fees     84.4       92.2       104.6       105.1       124.4       18 %     47 %
Rental agreemets     53.7       58.3       61.8       64.2       73.7       15 %     37 %
Advertising & publicity     38.3       56.0       95.1       32.3       55.3       71 %     44 %
Personnel allowances     20.1       23.1       22.6       22.8       30.5       34 %     52 %
Stationary & Office Supplies     10.6       10.7       11.6       12.9       13.2       2 %     25 %
Insurance     12.6       10.7       10.7       10.7       13.3       24 %     6 %
Hired administrative services     2.6       4.8       4.7       3.5       4.5       29 %     73 %
Other     263.6       252.4       294.7       332.8       366.4       10 %     39 %
Total Administrative Expenses     2,961.6       3,114.9       3,579.6       3,419.7       3,992.6       17 %     35 %
                                                         
Total Employees     8,702       8,721       8,774       8,915       8,949                  
Branches     449       448       445       454       455                  
Efficiency ratio     45.0 %     42.1 %     46.2 %     39.8 %     44.9 %                
                                                         
Accumulated efficiency ratio     44.9 %     43.9 %     44.6 %     39.8 %     42.4 %                

 

Efficiency Ratio: (Employee Benefits + G&A Expenses + Depreciation & Impairment of assets + Other operating expenses (exc.Turnover Tax & Sedesa) / (Net Interest Income + Net Fee Income + Other operating income + Differences in quoted prices of gold and foreign currency)

 

In 2Q18, Other Operating Expenses totaled Ps.2.3 billion, with Turnover Tax and Other expenses standing out with 13% (Ps.153 million) and 17% (Ps.105 million) increases respectively. On a yearly basis Other Operating Expenses increased 46% or Ps. 730 million.

 

OTHER OPERATING EXPENSES   MACRO consolidated     Variation  
MILLION $   2Q17     3Q17     4Q17     1Q18     2Q18     QoQ     YoY  
                                           
Turnover Tax     815.2       885.1       987.8       1,155.9       1,309.3       13 %     61 %
Other provision charges     134.8       170.9       343.2       165.8       187.6       13 %     39 %
Deposit Guarantee Fund Contributions     50.5       54.2       59.4       64.0       68.9       8 %     37 %
Donations     23.7       24.7       25.2       22.9       24.7       8 %     4 %
Insurance claims     8.1       12.0       8.1       10.4       11.7       13 %     44 %
Initial loan recognition     42.0       -49.0       0.0       0.0       0.0       0 %     -100 %
Late charges and charges payable to the Central Bank     0.1       0.0       0.0       0.0       0.0       0 %     -100 %
Others     513.4       549.8       640.2       610.2       715.3       17 %     39 %
Other Operating Expenses     1,587.8       1,647.7       2,063.9       2,029.2       2,317.5       14 %     46 %

 

In 2Q18, Banco Macro's effective income tax rate was 28.8%, compared to 27.5% in 1Q18 and 34.7% in 2Q17. The lower effective tax rate is explained by the reduction in statutory tax rates included in the latest tax reform bill approved by Congress (Law 27.430/2017). As of January 2018 statutory tax rate is reduced from 35% to 30% and starting from January 2020 statutory tax rate will be further reduced to 25%.

 

  7

2Q18 Earnings Release

Financial Assets

 

Private sector financing

 

The volume of “core” financing to the private sector (including loans, financial trust and leasing portfolio) totaled Ps.151.2 billion, increasing 6% or Ps.8.9 billion QoQ and 44% or Ps.45.6 billion YoY.

 

Within commercial loans, growth was driven by Documents and Others, which grew 7% and 9% QoQ, respectively.

 

The main growth in consumer lending was driven by mortgage loans, personal loans and credit card loans which grew 16%, 7% and 7% QoQ, respectively.

 

As of 2Q18, Banco Macro´s market share over private sector loans was 7.4%.

 

FINANCING TO THE PRIVATE SECTOR   MACRO Consolidated     Variation  
In MILLION $   2Q17     3Q17     4Q17     1Q18     2Q18     QoQ     YoY  
                                           
Overdrafts     9,638.2       12,170.4       8,829.3       12,015.4       10,636.2       -11 %     10 %
Discounted documents     12,349.1       14,452.7       17,272.1       18,200.5       19,462.6       7 %     58 %
Mortgages loans     5,195.5       6,247.0       8,057.5       10,226.5       11,882.6       16 %     129 %
Pledged loans     3,263.4       3,551.3       4,150.1       4,133.0       4,406.0       7 %     35 %
Personal loans     37,342.5       42,361.4       47,376.8       51,663.4       55,195.0       7 %     48 %
Credit Card loans     20,590.9       21,507.2       24,971.9       26,350.0       28,073.9       7 %     36 %
Others     15,281.5       15,356.1       16,308.1       18,551.6       20,144.5       9 %     32 %
IFRS adjustment     -310.0       -276.2                                          
Total loan portfolio     103,351.0       115,370.0       126,965.8       141,140.3       149,800.6       6 %     45 %
                                                         
Financial trusts     1,121.5       1,281.8       1,011.8       683.4       919.4       35 %     -18 %
Leasing     479.8       526.3       587.5       550.5       515.8       -6 %     8 %
Total financing to the private sector     104,952.3       117,178.0       128,565.1       142,374.2       151,235.8       6 %     44 %

 

Public Sector Assets

 

In 2Q18, the Bank’s public sector assets (excluding LEBACs) to total assets ratio was 3%, higher than the 1.6% registered in the previous quarter, and than the 2.5% posted in 2Q17.

 

In 2Q18, a 21% increase in LEBACs position and a 237% increase in Other government securities stand out.

 

PUBLIC SECTOR ASSETS   MACRO Consolidated     Variation  
In MILLION $   2Q17     3Q17     4Q17     1Q18     2Q18     QoQ     YoY  
                                           
LEBACs     24,679.7       26,461.8       35,645.3       32,968.6       40,000.8       21 %     62 %
Other     4,270.5       4,638.5       1,930.0       1,786.1       6,012.2       237 %     41 %
Government securities     28,950.2       31,100.3       37,575.3       34,754.7       46,013.0       32 %     59 %
Provincial loans     495.2       1,832.2       1,797.3       1,826.9       1,973.4       8 %     299 %
Loans     495.2       1,832.2       1,797.3       1,826.9       1,973.4       8 %     299 %
Purchase of government bonds     36.1       39.5       42.1       44.5       59.7       34 %     65 %
Other receivables     36.1       39.5       42.1       44.5       59.7       34 %     65 %
                                                         
TOTAL PUBLIC SECTOR ASSETS     29,481.5       32,972.0       39,414.7       36,626.1       48,046.1       31 %     63 %
                                                         
TOTAL PUBLIC SECTOR LIABILITIES     15.2       10.1       4.5       1.0       0.1       -90 %     -99 %
                                                         
Net exposure     29,466.3       32,961.9       39,410.2       36,625.1       48,046.0       31 %     63 %
                                                         
TOTAL PUBLIC SECTOR ASSETS (net of LEBAC / NOBAC )     4,801.8       6,510.2       3,769.4       3,657.5       8,045.3       120 %     68 %
                                                         
TOTAL PUBLIC SECTOR ASSETS (net of LEBAC / NOBAC) /TOTAL ASSETS     2.5 %     3.1 %     1.7 %     1.6 %     3.0 %                

 

  8

2Q18 Earnings Release

Funding

 

Deposits

 

Banco Macro’s deposit base totaled Ps.179.5 billion in 2Q18, growing 20% or Ps.30 billion QoQ and 45% or Ps.56 billion YoY and representing 81% of the Bank’s total liabilities.

 

On a quarterly basis, private sector deposits grew 18% or Ps.24.4 billion, while public sector deposits increased 40% or Ps.5.6 billion.

 

The increase in private sector deposits was led by time deposits, which grew 20% or Ps.13.4 billion QoQ. In addition, sight deposits increased 17% or Ps.11 billion QoQ.

 

Within private sector deposits, peso deposits increased 10% or Ps.12.1 billion, while US dollar deposits increased 11% or USD169 million.

 

As of 2Q18, Banco Macro´s market share over private sector deposits was 6.7%.

 

DEPOSITS   MACRO Consolidated     Variation  
In MILLION $   2Q17     3Q17     4Q18     1Q18     2Q18     QoQ     YoY  
                                           
Public sector     10,804.0       16,461.9       12,890.7       13,846.7       19,404.9       40 %     80 %
                                                         
Financial sector     57.4       54.6       81.4       93.2       125.4       35 %     119 %
                                                         
Private sector     112,581.5       120,009.6       131,157.1       135,548.2       159,942.9       18 %     42 %
Checking accounts     19,951.1       20,950.4       20,778.6       20,381.7       21,225.6       4 %     6 %
Savings accounts     34,079.8       35,039.4       44,531.9       43,307.7       53,507.2       24 %     57 %
Time deposits     53,328.9       59,147.1       61,602.4       66,881.0       80,250.3       20 %     50 %
Other     5,221.7       4,872.7       4,244.2       4,977.8       4,959.8       0 %     -5 %
Total     123,442.8       136,526.1       144,129.2       149,488.1       179,473.2       20 %     45 %
                                                         
Pesos     100,094.2       106,659.7       112,978.6       119,483.6       131,597.9       10 %     31 %
Foreign Currency     23,348.6       29,866.4       31,150.6       30,004.5       47,875.3       60 %     105 %

 

Other sources of funds

 

In 2Q18, the total amount of other sources of funds increased 13% or Ps.8 billion compared to 1Q18. In 2Q18 Subordinated corporate bonds stands out with a 41% or Ps.3.4 billion increase as a consequence of the argentine peso depreciation registered during the quarter. Issued Corporate bonds also increased in 2Q18 due to the Ps.3.2 billion issuance of Series “C” peso notes.

 

Shareholders’ Equity was unchanged during the quarter, given that net income for the period was Ps.3.1 billion was offset by Ps.3.3 billion cash dividend paid in may.

 

OTHER SOURCES OF FUNDS   MACRO Consolidated     Variation  
In MILLION $   2Q17     3Q17     4Q17     1Q18     2Q18     QoQ     YoY  
                                           
Central Bank of Argentina     10.4       9.8       11.5       13.3       16.1       21 %     55 %
Banks and international institutions     345.3       423.7       167.4       3.3       1,180.1       35661 %     242 %
Financing received from Argentine financial institutions     448.1       1,204.4       995.2       470.4       632.8       35 %     41 %
Subordinated corporate bonds     6,676.3       7,088.6       7,565.8       8,257.8       11,646.2       41 %     74 %
Corporate bonds     4,710.5       4,913.2       4,712.2       4,913.0       8,125.3       65 %     72 %
Shareholders´ equity     38,930.2       43,316.8       46,535.0       50,085.7       50,145.9       0 %     29 %
Total other source of funds     51,120.8       56,956.5       59,987.1       63,743.5       71,746.4       13 %     40 %

 

  9

2Q18 Earnings Release

Banco Macro’s transactional deposits represent approximately 48% of its total deposit base as of 2Q18. These accounts are low cost and are not sensitive to interest rate increases.

 

Liquid Assets

 

In 2Q18, the Bank’s liquid assets amounted to Ps.93.8 billion, showing a 39% or Ps.26.1 billion increase QoQ, and a 48% or Ps.30.4 billion increase on a yearly basis.

 

In 2Q18, Cash increased 71% or Ps.21 billion. Also in the quarter LEBAC/NOBAC own portfolio increased 15% or Ps.5.1 billion.

 

In 2Q18 Banco Macro’s liquid assets to total deposits ratio reached 52.3%.

 

LIQUID ASSETS   MACRO Consolidated     Variation  
In MILLION $   2Q17     3Q17     4Q17     1Q18     2Q18     QoQ     YoY  
                                           
Cash     36,414.8       37,693.3       35,561.6       29,440.8       50,309.6       71 %     38 %
Guarantees for compensating chambers     2,174.3       3,739.7       4,005.7       4,141.5       4,821.5       16 %     122 %
Call     235.0       410.0       146.0       1,138.4       620.0       -46 %     164 %
LEBAC / NOBAC own portfolio     24,555.2       26,688.1       32,655.9       32,968.6       38,038.9       15 %     55 %
Total     63,379.3       68,531.1       72,369.2       67,689.3       93,790.0       39 %     48 %
                                                         
Liquid assets to total deposits     51.3 %     50.2 %     50.2 %     45.3 %     52.3 %     15 %     2 %

 

Solvency

 

Banco Macro continued showing high solvency levels in 2Q18 with an integrated capital (RPC) of Ps.59 billion over a total capital requirement of Ps.17.5 billion. Banco Macro´s excess capital in 2Q18 was 237% or Ps.41.5 billion.

 

The regulatory capital ratio (as a percentage of risk-weighted assets- RWA) was 27.6% in 2Q18, TIER1 Ratio stands at 21.5%

 

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

 

  10

2Q18 Earnings Release

MINIMUM CAPITAL REQUIREMENT   MACRO Consolidated     Variation  
In MILLION $   2Q17     3Q17     4Q17     1Q18     2Q18     QoQ     YoY  
                                           
Credit risk requirement     9,410.4       10,942.8       11,023.2       12,371.2       13,184.6       7 %     40 %
Market risk requirement     863.4       711.8       184.4       188.4       450.5       139 %     -48 %
Operational risk requirement     2,715.0       2,959.5       3,219.3       3,530.4       3,843.2       9 %     42 %
Total capital requirements     12,988.8       14,614.0       14,426.9       16,090.1       17,478.3       9 %     35 %
                                                         
Ordinary Capital Level 1 (COn1)     34,887.9       38,899.1       41,709.1       46,564.4       48,526.5       4 %     39 %
Deductible concepts Level 1 (COn1)     -819.5       -928.5       -1,022.0       -2,476.2       -2,646.1       7 %     223 %
Aditional Capital Level 1 (CAn1)     14.6       16.9       18.1       20.9       21.2       2 %     46 %
Capital Level 2 (COn2)     7,715.5       8,139.3       8,836.5       9,530.0       13,087.2       37 %     70 %
Integrated capital - RPC (i)     41,798.4       46,126.8       49,541.6       53,639.1       58,988.8       10 %     41 %
                                                         
Excess capital     28,809.6       31,512.7       35,114.7       37,549.0       41,510.5       11 %     44 %
                                                         
Risk-weighted assets - RWA (ii)     158,934.5       178,691.4       176,323.3       196,622.3       213,678.7       9 %     34 %
                                                         
Regulatory Capital ratio [(i)/(ii)]     26.3 %     25.8 %     28.1 %     27.3 %     27.6 %                
                                                         
Ratio TIER 1 [Capital Level 1/RWA]     21.4 %     21.3 %     23.1 %     22.4 %     21.5 %                

 

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

 

Asset Quality

 

In 2Q18, Banco Macro’s non-performing to total financing ratio reached a level of 1.38%, up form 1.11% in 1Q18, and 1.27% posted in 2Q17.

 

Commercial portfolio non-performing loans increased 23bp in 2Q18 meanwhile consumer portfolio showed a slightly worse performance with non-performing loans increasing 28bp, from 1.54% in 1Q18 to 1.82%.

 

The coverage ratio reached 149.3% in 2Q18. Write-offs over total loans totaled 0.24%.

 

The Bank is committed to continue working in this area to maintain excellent asset quality standards. Banco Macro’s low non-performing to total financing ratio and high coverage ratio are among the best in the industry.

 

ASSET QUALITY   MACRO Consolidated     Variation  
In MILLION $   2Q17     3Q17     4Q17     1Q18     2Q18     QoQ     YoY  
                                           
Commercial portfolio     41,052.2       48,541.0       48,851.6       56,697.6       59,005.7       4 %     44 %
Non-performing     265.4       127.7       187.6       222.1       367.6       66 %     39 %
Consumer portfolio     68,524.1       75,910.0       87,734.1       95,573.9       102,220.6       7 %     49 %
Non-performing     1,130.4       1,121.5       1,275.9       1,468.7       1,857.4       26 %     64 %
Total portfolio     109,576.3       124,451.0       136,585.7       152,271.5       161,226.3       6 %     47 %
Non-performing     1,395.8       1,249.2       1,463.5       1,690.8       2,225.0       32 %     59 %
Total non-performing/ Total portfolio     1.27 %     1.00 %     1.07 %     1.11 %     1.38 %                
                                                         
Total allowances     2,346.1       2,489.0       2,666.7       3,015.5       3,321.9       10 %     42 %
Coverage ratio w/allowances     168.08 %     199.25 %     182.21 %     178.35 %     149.30 %                
Write Offs     223.4       225.0       285.1       239.7       385.9       61 %     73 %
Write Offs/ Total portfolio     0.18 %     0.16 %     0.19 %     0.16 %     0.24 %                

 

  11

2Q18 Earnings Release

CER Exposure and Foreign Currency Position

 

CER EXPOSURE   MACRO Consolidated     Variation  
In MILLION $   2Q17     3Q17     4Q17     1Q18     2Q18     QoQ     YoY  
                                           
CER adjustable ASSETS                                                        
Private sector loans (*)     1,467.3       3,442.7       3,582.2       5,416.5       6,521.0       20 %     344 %
Other loans     0.4       0.3       10.5       0.4       0.5       25 %     25 %
Total CER adjustable assets     1,467.7       3,443.0       3,592.7       5,416.9       6,521.5       20 %     344 %
                                                         
CER adjustable LIABILITIES                                                        
Deposits (*)     77.3       98.1       86.7       536.0       737.3       38 %     854 %
Other liabilities from financial intermediation     13.1       8.7       3.9       0.0       0.0       0 %     0 %
Total CER adjustable liabilities     90.4       106.8       90.6       536.0       737.3       38 %     716 %
                                                         
NET CER EXPOSURE     1,377.3       3,336.2       3,502.1       4,880.9       5,784.2       19 %     320 %

 

(*) Includes Loans &Time Deposits CER adjustable (UVAs)

 

FOREIGN CURRENCY POSITION   Macro Consolidated     Variation  
In MILLION $   2Q17     3Q17     4Q17     1Q18     2Q18     QoQ     YoY  
                                           
Cash and deposits in Banks     21,651.1       25,191.5       21,049.4       13,224.8       27,819.2       110 %     28 %
Cash     1,091.2       1,099.8       1,602.8       1,409.7       1,802.9       28 %     65 %
Central Bank of Argentina     10,683.5       13,071.0       14,366.4       9,670.9       20,866.1       116 %     95 %
Other financial institutions local and abroad     9,799.4       11,019.6       3,765.0       1,929.3       5,109.9       165 %     -48 %
Others     77.0       1.1       1,315.2       214.9       40.3       -81 %     -48 %
Net Income from financial instruments at fair value through P&L     80.3       45.8       50.9       112.1       230.8       106 %     187 %
Derivatives     0.0       0.0       0.6       0.0       0.7       100 %     0 %
Other financial assets     675.8       677.7       875.4       1,220.3       1,233.8       1 %     83 %
Loans and other financing     16,612.5       18,928.8       18,771.0       22,541.5       27,830.1       23 %     68 %
Other financial institutions     149.2       178.9       175.1       500.4       254.7       -49 %     71 %
Non financial private sector & foreign residents     16,463.3       18,749.9       18,595.9       22,041.1       27,575.4       25 %     67 %
Other debt securities     2,020.2       2,014.0       1,092.9       1,095.1       1,306.6       19 %     -35 %
Guarantess received     165.4       216.6       247.0       263.8       581.9       121 %     252 %
Investment in equity instruments     3.5       4.2       4.0       4.5       5.9       31 %     69 %
Investment in associates and joint ventures     0.1       0.1       0.0       0.0       0.0       0 %     0 %
Total Assets     41,208.9       47,078.7       42,091.2       38,462.1       59,009.0       53 %     43 %
Deposits     23,348.6       29,868.4       31,150.6       30,004.5       47,875.3       60 %     105 %
Non financial public sector     552.1       3,817.1       3,927.0       1,409.9       2,676.0       90 %     385 %
Financial sector     32.8       34.4       45.9       54.0       77.4       43 %     136 %
Non financial private sector & foreign residents     22,763.7       26,016.9       27,177.7       28,540.6       45,121.9       58 %     98 %
Other liabilities from financial intermediation     1,158.5       1,503.9       1,382.7       1,475.7       2,406.0       63 %     108 %
Non-subordinated corporate bonds     732.1       1,551.9       887.3       265.2       1,180.1       345 %     61 %
Subordinated corporate bonds     6,682.3       7,090.7       7,589.9       8,279.4       11,665.9       41 %     75 %
Other liabilities     6.2       5.3       49.1       16.3       24.9       53 %     302 %
Total Liabilities     31,921.7       39,991.8       41,035.5       40,019.5       63,132.5       58 %     98 %
                                                         
NET FX POSITION     9,287.2       7,086.9       1,055.7       -1,557.4       -4,123.5       165 %     -144 %

 

  12

2Q18 Earnings Release

Key concepts under I.F.R.S.

 

The Bank established three categories for the classification and measurement of its financial instruments, in accordance with the Bank’s business model to manage its financial assets 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 contractual cash flows.

 

· at fair value through other comprehensive income : the objective of the business model is both collecting the contractual cash flows of the financial asset and/or of those derived from the sale of the financial asset.

 

· at fair value through profit or loss : the objective of the business model is generating income derived from 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 to collect contractual cash flows,

 

· the contractual terms of the financial asset give rise, on specified dates, to cash flows that are solely payments of principal and interest on the principal amount outstanding.

 

Relevant and Recent Events

 

· Interest Payment Class C Peso denominated Notes. In July 2018, the Bank paid quarterly interest on Class C peso denominated notes in the amount of Ps.242,603,950.44

 

· Banco del Tucumán. In July 2018 the Legislature of the Province of Tucumán approved and passed a law authorizing the Government of the Province of Tucumán to sell to Banco Macro S.A. the shares held by the Province in Banco del Tucumán S.A.; as well as its continuity as financial agent of such Province for an additional term of 10 years from the maturity contract date and, if applicable, the possibility to merge both entities. On August 10, 2018 the Province of Tucumán transferred to Banco Macro S.A. 43,960 Class B common registered and non-endorsable shares of par value $100 each and entitled to one vote per share of Banco del Tucumán S.A., representing 10% of the capital stock and votes

 

· Repurchase of Class B Peso linked Notes . During August 2018, the Bank repurchased face value Ps.632,871,000 of Class B peso linked notes (Ps.4,620,570,000 issuance, 17.5% fixed rate, with final maturity May 2022) issued under the Bank’s Global Notes Program of USD 1,500,000,000.

 

· Repurchase of Class C Peso denominated Notes. During July and August 2018, the Bank repurchased face value Ps.215,000,000 of Class C Peso denominated notes (Ps.3,207,500,000 issuance, variable rate Badlar + 3.5%, final maturity April 2021) issued under the Bank’s Global Notes Program of USD 1,500,000,000.

 

· Share Repurchase Program: On August 8th, 2018 the Board of Directors decided to establish the terms and conditions for the repurchase of shares issued by the Bank:

 

o Maximum amount of the investment : Up to Ps. 5,000,000,000.
o Maximum number of shares to be acquired : Up to 5.0% of the Bank’s total capital stock, in compliance with applicable Argentine laws and regulations.
o Maximum payable price: Up to Ps$. 158.00 per share.
o Term for the acquisition : 30 calendar days, from the date following the publication date of the relevant information in the Bulletin of the Buenos Aires Stock Exchange, subject to any further renewal or extension, which shall be duly informed to the public in such Bulletin.
o As of August 21 st , 2018 7,149,135 shares have been repurchased, totalizing Ps. 1,030,754,238.60 and representing 20.6% of the buyback program.

 

  13

2Q18 Earnings Release

Regulatory Changes

 

· Reserve Requirements & Net Global FX Position . On June 18 th , 2018, through Communication “A” 6526 the Central Bank of Argentina (BCRA) established that

 

o Net Global FX Position: As of June 18 th , 2018 “Net Global long FX position” when converted to Ps. At the applicable exchange rate on a daily basis cannot be greater than 5% (down from 10%) of the previous month integrated capital (RPC) or the Bank’s own liquid assets whichever is less.
o Reserve Requirements: Increase Reserve requirements as of June 21 st , 2018 by 300bp. and an additional 200bp as of July 18 th , 2018. These increases in reserve requirements could be met by buying Treasury Bonds with final maturity 2020.

 

· Reserve Requirements. On July 2 nd , 2018, through Communication “A” 6532 the Central Bank of Argentina (BCRA) increased reserve requirements by 300bp. for sight and time deposits. This increase in reserve requirements should be met in Ps. (and not by buying Treasury Bonds)

 

· Reserve Requirements. On August 16 th , 2018, through Communication “A” 6550 the Central Bank of Argentina (BCRA) increased reserve requirements by 300bp for sight and time deposits. This increase in reserve requirements should be met in Ps. (and not by buying Treasury Bonds)

 

  14

2Q18 Earnings Release

 

QUARTERLY BALANCE SHEET   MACRO Consolidated     Variation  
IN MILLIONS $   2Q17     3Q17     4Q17     1Q18     2Q18     QoQ     YoY  
                                           
ASSETS                                                        
Cash and deposits in Banks     36,414.8       37,693.3       35,561.6       29,440.8       50,309.6       71 %     38 %
 Cash     5,243.5       5,735.3       6,761.4       7,386.0       6,588.0       -11 %     26 %
 Central Bank of Argentina     21,262.8       20,909.2       23,703.5       19,891.7       38,529.5       94 %     81 %
 Other locan & foreign entities     9,831.6       11,047.7       3,781.5       1,948.2       5,151.8       164 %     -48 %
 Other     77.0       1.1       1,315.2       214.9       40.3       -81 %     -48 %
Debt securities at fair value through profit & loss     816.0       805.0       1,086.0       605.2       1,339.7       121 %     64 %
Derivatives     1.8       4.9       8.2       4.6       43.0       835 %     2242 %
Repo Transactions     2,052.8       956.8       1,419.8       587.3       156.2       -73 %     -92 %
Other financial assets     1,934.5       2,740.0       2,272.7       3,055.0       2,515.4       -18 %     30 %
Loans & other recievables     105,923.5       120,336.3       132,658.7       147,618.8       155,620.5       5 %     47 %
 Non Financial Public Sector     545.2       1,890.3       1,865.9       1,886.0       2,040.8       8 %     274 %
 Financial Sector     2,231.1       2,999.9       3,239.5       4,042.0       3,263.3       -19 %     46 %
 Non Financial private sector and foreign     103,147.2       115,446.0       127,553.3       141,690.8       150,316.4       6 %     46 %
Other debt securities     29,465.3       31,889.0       34,703.8       34,745.7       43,162.6       24 %     46 %
Financial assets in guarantee     2,647.2       4,347.2       7,638.4       4,729.2       7,477.1       58 %     182 %
Investments in equity instruments     148.3       177.3       282.7       110.2       50.0       -55 %     -66 %
Investments in other companies (subsidiaries and joint ventures)     102.0       106.2       218.9       288.0       97.8       -66 %     -4 %
Property, plant and equipment     6,630.5       6,810.6       7,040.2       7,233.7       7,591.2       5 %     14 %
Intangible assets     578.7       779.0       880.7       947.3       993.8       5 %     72 %
Deferred income tax assets     17.5       31.3       27.8       33.4       46.8       40 %     168 %
Other non financial assets     2,076.1       2,261.4       2,339.9       2,157.6       2,204.8       2 %     6 %
Non-current assets held for sale     204.7       204.7       199.9       109.4       126.6       16 %     -38 %
TOTAL ASSETS     189,013.7       209,143.1       226,339.1       231,666.2       271,735.1       17 %     44 %
                                                         
LIABILITIES                                                        
Deposits     123,442.8       136,526.1       144,129.2       149,488.1       179,473.2       20 %     45 %
 Non Financial Public Sector     10,804.0       16,461.9       12,890.7       13,846.7       19,404.9       40 %     80 %
 Financial Sector     57.4       54.6       81.4       93.2       125.4       35 %     119 %
 Non Financial private sector and foreign     112,581.5       120,009.6       131,157.1       135,548.2       159,942.9       18 %     42 %
Liabilities at fair value through profit & loss     -       -       6.5       12.8       -       -100 %     0 %
Derivatives     0.2       1.0       23.1       13.7       34.2       150 %     15660 %
Repo Transactions     -       295.2       2,688.1       9.2       1,829.2       19783 %     0 %
Other financial liabilities     7,796.3       7,668.4       10,561.2       9,093.9       11,195.1       23 %     44 %
Financig received from Central Bank and Other Financial Institutions     803.8       1,637.9       1,174.1       487.0       1,829.0       276 %     128 %
Issued Corporate Bonds     4,737.4       4,939.5       4,712.2       4,913.0       8,125.3       65 %     72 %
Current income tax liabilities     1,653.7       2,433.5       3,975.3       4,072.1       1,781.1       -56 %     8 %
Subordinated corporate bonds     6,649.4       7,062.3       7,565.8       8,257.8       11,646.2       41 %     75 %
Provisions     376.9       477.5       694.9       734.6       784.6       7 %     108 %
Deferred income tax liabilities     1,116.4       974.6       496.8       357.9       211.1       -41 %     -81 %
Other non financial liabilities     3,355.1       3,638.3       3,576.0       3,917.2       4,436.0       13 %     32 %
TOTAL LIABILITIES     149,932.1       165,654.4       179,603.2       181,357.3       221,345.0       22 %     48 %
                                                         
SHAREHOLDERS' EQUITY                                                        
Capital Stock     658.6       669.7       669.7       669.7       669.7       0 %     2 %
Issued Shares premium     10,787.2       12,426.8       12,428.5       12,428.5       12,428.5       0 %     15 %
Adjustment to Shareholders' Equity     4.5       4.5       4.5       4.5       4.5       0 %     0 %
Reserves     20,363.4       20,363.4       20,363.4       20,363.4       26,403.8       30 %     30 %
Retained earnings     2,799.1       2,799.1       2,799.1       12,864.4       3,475.7       -73 %     24 %
Other accumulated comprehensive income     88.6       89.3       204.6       213.0       505.9       138 %     471 %
Net income for the period / fiscal year     4,228.8       6,964.0       10,065.4       3,542.2       6,657.8       88 %     57 %
Shareholders' Equity attributable to parent company     38,930.2       43,316.8       46,535.0       50,085.7       50,145.9       0 %     29 %
                                                         
Shareholders' Equity attributable to non controlling interest     151.4       171.9       200.9       223.2       244.2       9 %     61 %
TOTAL SHAREHOLDERS' EQUITY     39,081.6       43,488.7       46,735.9       50,308.9       50,390.1       0 %     29 %

 

  15

2Q18 Earnings Release

INCOME STATEMENT   MACRO Consolidated     Variation  
IN MILLION $   2Q17     3Q17     4Q17     1Q18     2Q18     QoQ     YoY  
                                           
Interest Income     7,820.3       8,869.5       10,441.2       11,336.8       13,616.8       20 %     74 %
Interest Expense     2,350.4       2,783.6       3,035.9       3,395.7       4,524.0       33 %     92 %
Net Interest Income     5,469.9       6,085.9       7,405.3       7,941.1       9,092.8       15 %     66 %
Fee income     1,659.7       1,755.4       1,598.9       1,835.5       2,116.2       15 %     28 %
Fee expense     165.4       178.7       184.2       184.9       209.6       13 %     27 %
Net Fee Income     1,494.3       1,576.7       1,414.7       1,650.6       1,906.6       16 %     28 %
Subtotal (Net Interest Income + Net Fee Income)     6,964.2       7,662.6       8,820.0       9,591.7       10,999.4       15 %     58 %
Net Income from financial instruments at Fair Value Through Profit & Loss     124.6       211.1       199.1       249.2       -46.3       -119 %     -137 %
Result from assets at amortised cost     32.0       18.4       -26.1       -2.9       -       -100 %     -100 %
Difference in quoted prices of gold and foreign currency     365.2       578.0       255.0       150.6       -1,012.3       -772 %     -377 %
Other operating income     1,068.2       1,009.8       1,142.1       1,304.0       1,375.7       5 %     29 %
Provision for loan losses     466.6       343.1       421.8       566.8       571.3       1 %     22 %
Net Operating Income     8,087.6       9,136.8       9,968.3       10,725.8       10,745.2       0 %     33 %
Personnel expenses     1,861.1       1,928.3       2,185.4       2,017.7       2,443.1       21 %     31 %
Administrative expenses     1,100.5       1,186.6       1,394.2       1,402.0       1,549.5       11 %     41 %
Depreciation and impairment of assets     131.7       145.0       179.5       162.9       172.6       6 %     31 %
Other operating expense     1,587.8       1,647.6       2,064.0       2,029.2       2,317.6       14 %     46 %
Operating Income     3,406.5       4,229.3       4,145.2       5,114.0       4,262.4       -17 %     25 %
Income from associates and joint ventures     29.7       45.9       108.3       75.4       145.1       92 %     389 %
Net Income before income tax on continuing operations     3,436.2       4,275.2       4,253.5       5,189.4       4,407.5       -15 %     28 %
Income tax on continuing operations     1,192.9       1,519.7       1,123.2       1,624.9       1,270.7       -22 %     7 %
Net Income from continuing operations     2,243.3       2,755.5       3,130.3       3,564.5       3,136.8       -12 %     40 %
Net Income for the period     2,243.3       2,755.5       3,130.3       3,564.5       3,136.8       -12 %     40 %
Net Income of the period attributable to parent company     2,223.6       2,735.1       3,101.3       3,542.1       3,115.7       -12 %     40 %
Net income of the period attributable to non-controlling interests     19.7       20.4       29.0       22.4       21.1       -6 %     7 %
Other Comprehensive Income     47.9       0.7       115.2       8.5       292.8       3345 %     511 %
Foreign currency translation differences in financial statements conversion     58.8       36.7       64.1       53.7       344.4       541 %     486 %
Profits or losses from financial assets measured at fair value through other
 comprehensive income (FVOCI) (IFRS 9(4.1.2)(a)
    -10.9       -36.0       51.1       -45.2       -51.6       14 %     373 %
                                                         
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD     2,291.2       2,756.2       3,245.5       3,573.0       3,429.6       -4 %     50 %
Total Comprehensive Income attributable to parent Company     2,271.6       2,735.9       3,216.6       3,550.7       3,408.4       -4 %     50 %
Total Comprehensive Income attributable to non-controlling interests     19.6       20.3       28.9       22.3       21.2       -5 %     9 %

 

  16

2Q18 Earnings Release

ANNUALIZED RATIOS   MACRO Consolidated  
    2Q17     3Q17     4Q17     1Q18     2Q18  
Profitability & performance                                        
Net interest margin     14.4 %     12.7 %     11.9 %     15.1 %     15.2 %
Efficiency ratio     45.0 %     42.1 %     46.2 %     39.8 %     44.9 %
Efficiency ratio (accumulated)     44.9 %     43.9 %     44.6 %     39.8 %     42.4 %
Return on average assets     5.4 %     5.6 %     5.9 %     6.4 %     5.1 %
Return on average assets (accumulated)     5.3 %     5.4 %     5.6 %     6.4 %     5.7 %
Return on average equity     34.2 %     27.9 %     29.5 %     29.4 %     25.1 %
Return on average equity (accumulated)     34.6 %     31.6 %     31.0 %     29.4 %     27.2 %
Liquidity                                        
Loans as a percentage of total deposits     87.0 %     89.3 %     93.2 %     99.9 %     87.8 %
Liquid assets as a percentage of total deposits     51.3 %     50.2 %     50.2 %     45.3 %     52.3 %
Capital                                        
Total equity as a percentage of total assets     20.7 %     20.8 %     20.6 %     21.7 %     18.5 %
Regulatory capital as % of APR     26.3 %     25.8 %     28.1 %     27.3 %     27.6 %
Asset Quality                                        
Allowances over total loans     2.2 %     2.0 %     2.0 %     2.0 %     2.1 %
Non-performing financing as a percentage of total financing     1.3 %     1.0 %     1.1 %     1.1 %     1.4 %
Coverage ratio w/allowances     168.1 %     199.2 %     182.2 %     178.4 %     149.3 %
Cost of Risk     1.6 %     1.5 %     1.4 %     1.4 %     1.4 %

 

  17

  

SIGNATURE

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereto duly authorized.

 

Date: August 22, 2018

 

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

 

 

 

Banco Macro Bansud (NYSE:BMA)
Historical Stock Chart

1 Year : From Sep 2017 to Sep 2018

Click Here for more Banco Macro Bansud Charts.

Banco Macro Bansud (NYSE:BMA)
Intraday Stock Chart

Today : Saturday 22 September 2018

Click Here for more Banco Macro Bansud Charts.

Latest BMA Messages

{{bbMessage.M_Alias}} {{bbMessage.MSG_Date}} {{bbMessage.HowLongAgo}} {{bbMessage.MSG_ID}} {{bbMessage.MSG_Subject}}

Loading Messages....


No posts yet, be the first! No {{symbol}} Message Board. Create One! See More Posts on {{symbol}} Message Board See More Message Board Posts


Your Recent History
LSE
GKP
Gulf Keyst..
LSE
QPP
Quindell
FTSE
UKX
FTSE 100
LSE
IOF
Iofina
FX
GBPUSD
UK Sterlin..
Stocks you've viewed will appear in this box, letting you easily return to quotes you've seen previously.

Register now to create your own custom streaming stock watchlist.


NYSE, AMEX, and ASX quotes are delayed by at least 20 minutes.
All other quotes are delayed by at least 15 minutes unless otherwise stated.