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
April 17, 2015
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.
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):
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):
Indicate by check mark whether by furnishing the information contained
in this Form, the registrant is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the
Securities Exchange Act of 1934.
If “Yes” is marked, indicate below the file number assigned
to the registrant in connection with Rule 12g3-2(b): 82- N/A
Annual Report
Integrated Annual Report
Banco Macro S.A.
2014
To the Shareholders
In compliance with the legal and statutory
provisions currently in force, the Board of Directors submits to you this Integrated Report that includes the Annual Report, the
Financial Statements, Auditing Committee’s Report, Corporate Governance Explanatory Report and other documents for the 49th
Fiscal Year ended December 31, 2014.
Annual Report
This annual report explains the different activities
developed by the Bank throughout this fiscal year. In that connection, it highlights the policies and actions as well as the economic
and financial performance during the annual period ended December 31, 2014. In addition, this document expresses the expectations
for the next fiscal year.
This report focuses directly on the shareholders
and investors, and at the same time seeks to reach all our key targets: customers, suppliers, collaborators, related organizations,
public sector, vendors and communication media.
This document includes information regarding
our performance based on certain material indictors, pursuant to the following sustainability international guidelines:
· | G4 Guide of the Global Reporting
Initiative – GRI1 with the Financial Services Sector Supplements, meeting the “in accordance” criterion
and reaching the “Core” option. |
· | IIRC’s International
Integrated Reporting Framework. |
· | The UN Global Compact's ten
principles. |
Application of the IIRC’s International
Integrated Reporting Framework
The Integrated Annual Report 2014 consolidates
financial and non-financial information and generates a reference and useful document for financial analysts, investors and all
other groups of interest of the Bank.
Following the guidelines established by the
International Integrated Reporting Council (IIRC) in its document “The International ˂IR> Framework”, we have
prepared a table that relates the six capital of the model with the information contained in this Report.
At the same time, we made the exercise of linking
the Bank’s sustainability basis with the capitals of the IIRC model in order to align all the tools used to improve day after
day our performance in the aspects that are relevant to the Bank and our groups of interest2.
1 www.globalreporting.org
2 To know more about the relationship between the published information
and the capitals of the IIRC model, see the chapter Scope in this document.
Our sustainability strategy
In 2012 Banco Macro defined its Sustainability
Policy based on five strategic pillars connected with the business and of impact on all its targets, which mark the sustainability
strategy for the short, medium and long term.
“Develop a sustainable business making
life easier for Our Customers”
In that sense, our goal is to be a more sustainable
bank federally speaking. In line with the above, we developed a strategy that meets the interests of our collaborators, customers,
providers, shareholders, the government, the communication media, the local community and the environment.
Sustainability strategic pillars
| 1 | Transparency in all our actions: we operate with maximum transparency in order to create
an environment of trust and credibility for all groups of interest. We practice active listening and permanent accountability. |
Our commitment:
| · | Implement communication channels adjusted
to each profile. |
| · | Fight corruption, money laundering and
terrorism financing. |
| · | Adhere to and comply with the most important
standards and good practices, both locally and internationally, related with transparency and management accountability. |
| · | Develop tools and codes to respect ethics
and good business conduct in our transactions. |
| 2 | Responsibility for public welfare and inclusion: we accompany the professional development
of our employees, boosting diversity and inclusion in the working environment and we consider minorities and vulnerable groups.
In all cases we pursue the same goal: to improve life quality of people. |
Our commitment:
| · | Incorporate new employee benefits. |
| · | Develop a work and family life reconciliation
program. |
| · | Create innovative products and services
for each customer profile. |
| 3 | Financial education and inclusion: We promote a healthy financial system. That’s why
we are constantly generating products and tools for the education of critical, prudent and economically responsible bankarized
citizens contributing to the economic growth of the country. |
Our commitment:
| · | Promote bankarization and accessibility
through our wide branch network. |
| · | Focus on lower-income sectors adapting
our commercial offering. |
| · | Promote financial education programs in
all communities. |
| 4 | Development of PYMEs and ventures: We care for our social setting and for the environment,
both internally and in our entire value chain. |
Our commitment:
| · | Create products and services tailored
to meet the needs of PYMES. |
| · | Accompany their growth with training and
advice. |
| · | Listen to its customers with an excellent
customer service. |
| 5 | Direct and Indirect Environmental Impact: We promote the care of our social environment
and the environment, both internally and in our entire value chain. |
Our commitment:
| · | Use natural resources efficiently. |
| · | Raise awareness on our collaborators and
customers, seeking a multiplying effect in society. |
| · | Measure our institutional carbon footprint. |
| · | Manage in a responsible manner all technological,
plastic and paper waste. |
| · | Develop an energy saving program. |
| · | Go deeper into the analysis of environmental
and social risks in the granting of loans. |
History
Banco Macro started operating as a non-banking
financial institution in 1985, through the purchase of Macro Financiera. In 1988, it was granted the authorization to operate as
Retail Bank by the Central Bank of Argentina. From then onwards and up to 1995, Banco Macro operated as a wholesale bank, being
a pioneer in corporate bonds issue, mainly acting in the areas of money market, trading of government and corporate bonds and financial
services for medium and large companies.
Then, Banco Macro substantially changed its
business strategy, focusing on the retail banking in market areas with low level of banking transactions and high growth potential.
Following this course, since January 1996, during the privatization process of several provincial banks, Banco Macro started acquiring
entities and assets and liabilities of the following banks: Banco Misiones (93%), Banco Salta (98%) and Banco Jujuy (100%).
In December 2001, with a strong position in
the northern area of the country already achieved, Banco Macro decided to extend Argentine presence through the purchase of 59.58%
of the capital stock of Banco Bansud S.A.; this entity was the leading private bank in the southern territory of Argentina, with
significant experience in its area of influence and a large branch network.
In August 2002, Banco Macro acquired 36 branches
of Scotiabank Quilmes. The following year, 2003, Banco Macro and Banco Bansud shareholders decided to merge both financial institutions
with the strategic objective of creating an institution with presence in the whole territory of Argentina.
In December 2004, maintaining its objective
of constant growth and expansion, Banco Macro acquired Nuevo Banco Suquía S.A., becoming the largest private sector branch
network in Argentina with the highest coverage in the interior of the country.
By the end of March 2006, Banco Macro´s
shares were publicly listed on the New York Stock Exchange (NYSE), being the first Argentine company to be listed abroad since
1997.
In May 2006, Banco Macro acquired Nuevo Banco
Bisel S.A., incorporating a bank with a strong presence in the central area of the country, allowing us to reinforce our commitment
to be a multiservice bank, which chiefly knows and is near the people.
In October 2007, the merger with Nuevo Banco
Suquía S.A. was done and two years later, in August 2009, the merger with Nuevo Banco Bisel S.A. was completed.
In September 2010, with the intention of reinforcing
the strategy in Buenos Aires area, Banco Macro acquired Banco Privado de Inversiones S.A. from which 95% of the customer portfolio
was distributed in the City of Buenos Aires and Greater metropolitan area of Buenos Aires. This was a fundamental step to consolidate
the bank´s nationwide position, provide better quality of service and offer more and better products to our customers.
In December 2013, Banco Macro completed the
merger with Banco Privado de Inversiones S.A.
Grupo Macro
Corporate Governance
Corporate Governance Guidelines
The Corporate Governance scheme of Banco Macro
S.A. is based on its bylaws and the Corporate Governance Policy as approved by the Board of Directors, which takes in all applicable
best practices in this matter, which at the same time are applicable to the Bank’s subsidiaries.
Annually we make an integral revision of the
Policy, incorporating or making more efficient processes based on the best practices. During this year, we have included specific
guidelines as to “Anticorruption Policy” and we have updated information “Transparency Policies”, which
allow a better inter-relationship with the inside and the surrounding outside.
Applicable Rules and Regulations
The Bank meets all provisions and requirements
established regarding this aspect by the Central Bank of the Republic of Argentina (Communication “A 5201”), the Comisión
Nacional de Valores (Capital Markets Act and its regulatory framework, General Resolution 622/13) and the SEC, which also requires
the Bank to submit a comparative report or rules and regulations, which we posted in the Investor Relations section of our web
page.
Ownership Structure
The Bank’s controlling interests are
held by three of its shareholders, who have large experience in the financial system and are members of the Bank’s Board
of Directors.
The rest of the shares are owned by the Sustainability
Guarantee Fund (managed by the National Social Security Administration or ANSeS), several local and foreign investment funds, institutional
investors and retail investors.
Board of Directors
The Board of Directors is the top management
body and its main function is to establish the Bank’s goals and business and risk management policies, with view towards
the Bank’s long-term development and sustainability.
The Board of Directors is currently formed
by 11 Regular Members designated by the General Shareholders’ Meeting and who shall hold office for periods of three fiscal
years. The Directors have experience, solid knowledge and enough training to carry out activities in the banking business.
On the other hand, Banco Macro S.A., in compliance
with the rules of the CNV and the SEC, has a Supervisory Committee composed of three independent Directors.
Members of the Board of Directors |
Name |
Chairman
Jorge Horacio Brito |
Vice Chairman
Delfín Jorge Ezequiel Carballo (1) |
Regular Directors
Jorge Pablo Brito
Juan Pablo Brito Devoto
Luis Carlos Cerolini
Carlos Enrique Videla (2)
Alejandro Macfarlane (2)
Guillermo Eduardo Stanley (2)
Constanza Brito
Marcos Brito
Emanuel Álvarez Agis (2) |
Alternate Directors
Santiago Seeber
Santiago Brito
Ernesto Eduardo Medina
Nicolás Alejandro Todesca (2)
Chrystian Colombo (2) |
(1) Absent on leave.
(2) Independent Director |
Supervisory Committee
Name |
Regular Members
Alejando Almarza
Carlos Javier Piazza
Vivian Haydee Stenghele |
Alternate Members
Javier Rodrigo Siñeriz
Alejandro Carlos Piazza
Leonardo Pablo Cortigiani |
Audit Committee
Name |
Regular Members
Guillermo Eduardo Stanley
Carlos Enrique Videla
Alejandro Macfarlane
Alternate Member
Chrystian Colombo |
Control Environment
The Internal Control System is mainly supported
by integrity, the moral and ethical values and the capacity of its members, but there are also other aspects represented on the
shaping of the operating processes, and mainly, on how such operating processes are managed and controlled, the level of adherence
to policies and the compliance with the goals/ objectives arising from the Management.
This system is evaluated on a permanent basis
by several players, with the purpose of testing compliance with all legal, regulatory and internal requirements, which ensure proper
operation.
In 2014 The Internal Audit Department worked
together with the Fraud Risk Management area to identify new risks and plans to prevent, detect and act in case of fraudulent practices
and irregular conduct.
Additionally, as every year, we made the SOX
certification (Sarbanes-Oxley Act) pursuant to the provisions of the Securities Exchange Commission (SEC), and we performed 2,831
controls, out of which 660 were tested by Internal Audit and the remaining ones, certified by those responsible of the processes.
Besides, we observed and inspected the execution of the 660 critical controls.
As to anti-money laundering and anti-terrorism
financing, we made revisions in accordance with the requirements of the control entities and we evaluated on an integral basis
the companies of Grupo Macro.
Code of Ethics and Conduct
The Bank has established a Code of Ethics applicable
to directors and top management officers.
The Bank expects all of its employees to act
in accordance with the highest levels of personal and professional integrity in all aspects of their activities, comply with the
applicable law, discourage any reproachable behavior and abide by the Bank’s Code of Conduct and other policies and procedures
adopted by it and regulating its employees’ behavior. This Code of Ethics supplements the Bank’s Code of Conduct.
Banco Macro seeks for a work environment that
stimulates responsibility, executive behavior, commitment, results, loyalty, honesty, good communication and team work.
Reaching a pleasant work environment demands
basing everyday relationships on mutual respect, trust and cordial and natural treatment, both between colleagues and bosses and
vendors and customers, developing all the activities with the highest labor and personal ethical standards.
In this sense, the Code of Conduct is intended
to provide the basic standards for all members of the Bank to act in the same way and with the same values when faced to similar
situations. The trust offered by shareholders, customers and the public in general depends mainly on the compliance with these
standards.
Committees
The members of the Board of Directors participate
actively in the day to day management, contributing their experience and knowledge, and interacting with Top Management.
The existing committees are: Executive Committee,
Audit Committee, Assets & Liabilities Committee, Risk Management Committee, Recovery Committee, Systems and IT Committee, Internal
Audit Committee, Anti-Money Laundering Committee, Personnel Incentive Committee, Ethics and Compliance Committee, Corporate Governance
& Designations Committee and Works Committee.
Transparency
The Central Bank of the Republic of Argentina
has established, through its Communication “A” 5394 –known as Market Discipline-, a series of information disclosure
requirements to be complied with by the financial entities in its relevant web sites, as to capital sufficiency and evaluation
processes, risk management and remuneration practices.
Within the framework of our Information Transparency
Policy, which is part of our Corporate Governance Policy, we make the commitment to disclose the entity’s risk profile. Consequently,
we disclose relevant information to ensure an adequate transparency of our risk management and measurement practices, as well as
the capital adequacy.
This information is disclosed to the highest
consolidation level of the banking group subject to the minimum capital framework (pursuant to the Revised Text of Minimum Capital
Integration and Requirement), and therefore it is presented on an integrated basis for Banco Macro and its subsidiaries (Banco
del Tucumán S.A., Macro Bank Ltd., Macro Fiducia S.A., Macro Securities S.A., Macro Fondos S.A.).
Description of Business
Business Model
Based on the Framework prepared by the International
Integrated Reporting Council (IIRC), the business model adopted by Banco Macro S.A. identifies the capitals3 necessary
for the Bank’s development as well as those that generate impact for the entity and its groups of interest. These resources
are, together with the strategy, values and corporate culture focused on sustainability, those that create economic, social and
environmental value.
The result of these capitals are the actions,
processes and programs that we develop during the year and communicate in this Report with quantitative result indicators.4
In this way, the construction of value is transversal to the Bank from an integral management.
Business Strategic Goals
For the year 2014 we set out the following
goals:
· Maintain
our market share in credit facilities oriented to consumer financing, with a sustained leadership of the portfolio of personal
loans, as well as a sustained growth in Credit Card portfolio.
3 Capitals described in this model
are not all capitals, but only some examples. See the chapter on Scope of this Report for additional information.
4 To know the relationship between the published information
and the capitals of the IIRC model, see the chapter on Scope of this document.
· Continue
granting funding to the Private Sector, thus contributing to the economic development of the regions where we operate, in transactions
with good repayment capacity and proper guarantees.
· Increase
funding to companies through a broad offer of credit products that meet the profile and needs of each customer, especially the
micro business, small business and agribusiness segments, making the most of the advantages that our extensive nationwide network
of branches gives us.
· Define
in all management departments sustainability and reputational goals in order to monitor year to year their improved performance5.
Support in achieving goals
· We
keep on strengthening the level of satisfaction of our customers as to the services we deliver as our main customer loyalty tool.
· We
developed further the branch network management model, and enhanced the development of the network with new openings, improving
regional business opportunities, and segmenting the points of service and sale, in accordance with the specific characteristics
and needs of our customers.
· We
continue to optimize operating effectiveness in branches to provide more and better services to our customers, by adding Loans
through Home Banking to those already existing, loans through Automated Teller Machines and Phone Banking services.
· We
consolidated the development of the different alternative service channels, making different means available to Customers, so that
they can carry out their financial transactions without any time restriction, at their convenience, simply and safely.
· 38
sustainability goals managed by different departments and more than 200 reputational improvement actions programed for central
and regional areas.
Macroeconomic Context
Global economy showed a 3% expansion, slightly
lower than the pace between 2010 and 2013, which was 3.4% annually in average. This indicates that developed countries continue
to show a slow recovery process, while emerging countries show a slowdown trend.
U.S.A. grew by 2.3%, similarly to post-crisis
years 2008/2009, showing more vigor since the second semester due to the lessening of families’ debt relief, and the resulting
recovery of internal expenditure on account of improved employment.
Europe went from a slight downturn in 2013,
to a very small improvement, reflecting a more active private sector, even under the tax adjustment process for the stabilization
of the public debt, which began in 2009.
China, with a growing participation, reached
12% of the global GDP after expanding to 7.4% yearly. The economic process, driven by credit, sustained the internal market and,
combined with migration to cities, was the fuel for global demand for raw materials.
Latin America, participating with a 7.5% of
the global GDP, showed a slowed down pace compared to that kept during the last few years, along with a fall in the price of commodities
and Brazil’s slowing down, which provided 41% of the regional GDP.
Brazil’s growth markedly slowed down
due to lower productivity, increased public expenditure, and a lower tax surplus, which kept inflation high, and this caused the
outflow of capitals and cut the positive inflow of investments from previous years. Brazil grew by 0.5% after having an annual
mean of 3.5% between 2003 and 2013.
5 See the table of contents in Exhibit
I to find more about 2014 goals.
In the external context, along with the dynamics
typical of macroeconomic unbalances, the actual GDP of the Republic of Argentina showed an expansion close to 0% during 2014.
In the last months of 2013, the Government
initiated an external risk mitigation process through a faster foreign exchange adjustment pace, which ended in a 23% devaluation
during January 2014.
The local economy slowdown, along with the
smaller demand from the main commercial partners, resulted in a reduction in commercial surplus and volume, the main source of
foreign currency offer.
The commercial balance of 2014 reached USD
6,687 million, 16% lower than the previous year; exports totaled USD 71,935 million, and imports reached USD 65,248 million.
Exports dropped by 12% in value due to the
fall in prices and volume of 2% and 100%, respectively. Reduction in volumes was mainly found in industrial exports –mainly
cars to Brazil–, primary sales, and energy sales.
On the other hand, imports dropped by 11%,
resulting from a 1% fall in prices, and an 11% fall in volumes. The restriction on purchases and foreign payments situation –especially
as regards consumer goods and cars–, led to a drop in all categories. Economic slowdown reduced energy purchases for the
first time in the last 5 years, while consumables purchases decreased due to local substitution.
| |
| | |
12 months | | |
| | |
| | |
| |
| |
| | |
Million USD | | |
| | |
| | |
| |
Exports | |
Primary | | |
MOA | | |
MOI | | |
Fuel | | |
Total | |
2013 | |
| 18,655 | | |
| 28,938 | | |
| 28,408 | | |
| 5,659 | | |
| 81,660 | |
2014 | |
| 14,977 | | |
| 28,153 | | |
| 24,145 | | |
| 4,660 | | |
| 71,935 | |
Value Var. | |
| -20 | % | |
| -3 | % | |
| -15 | % | |
| -18 | % | |
| -12 | % |
Price | |
| -12 | % | |
| -1 | % | |
| 2 | % | |
| -5 | % | |
| -2 | % |
Quantity | |
| -9 | % | |
| -2 | % | |
| -17 | % | |
| -13 | % | |
| -10 | % |
| |
| | | |
| | | |
| | | |
| | | |
| | |
Imports | |
Capital Goods | | |
Raw Materials | | |
Cons.+Automobile | | |
Fuel | | |
Total | |
2013 | |
| 28,064 | | |
| 19,515 | | |
| 14,733 | | |
| 11,343 | | |
| 73,655 | |
2014 | |
| 25,083 | | |
| 18,754 | | |
| 10,507 | | |
| 10,904 | | |
| 65,248 | |
Value Var. | |
| -11 | % | |
| -4 | % | |
| -29 | % | |
| -4 | % | |
| -11 | % |
Price | |
| 2 | % | |
| -2 | % | |
| 0 | % | |
| 0 | % | |
| 1 | % |
Quantity | |
| -12 | % | |
| -2 | % | |
| -29 | % | |
| -4 | % | |
| -12 | % |
MOA: Manufactured products of agricultural
origin
MOI: Manufactured products
of industrial origin
The combination of lower commercial balance
associated with the services deficit (public and private interest, dividends, tourism, etc.) maintained the Goods and Services
Gain/Loss as a deficit, though lower than in the previous year.
Even with such lower deficit, reserves improved
slightly (USD 844 million) in the year due to the activation of the SWAP with China, along with other financial lines (country-country)
agreed for the reinforcement of the BCRA external position.
In contrast with private contraction, the National
Government maintained the expansive tax policy direction along with improved tax collection.
Tax collection reached ARS 1,169.7 billion,
growing 36% yearly, and with the tax pressure reaching 26.6% of the GDP, the maximum of the last decade.
On the other hand, primary expenditure grew
by 43% in the year, totaling ARS 1,061.5 billion, based on the utilities subsidy policy, and capital expenditure. National public
expenditure including paid interest reached 25.8% of the GDP.
Thus, there was a primary and financial deficit
of ARS 38.3 billion, and ARS 109.7 billion, respectively. Both of them grew compared to those reported in 2013.
Continuing with the debt relief policy, the
BCRA funded the National Government for its internal deficit in pesos (primary deficit and interest in national currency), which
meant a larger currency issue with foreign currency from reserves (interest in dollars).
Monetary Market and Financial System
Throughout the year 2014, monetary aggregates
grew at a pace slower than that of the nominal6 GDP estimated at 29%, which caused a slight demonetization of economy.
The Monetary Base, private M2, and M3 rose
by around 22% yearly on average, some 7 points below the nominal GDP.
Such results were the consequence of the change
in the implemented monetary policy, which was expansive between 2010 and 2013, and then moderate after devaluation according to
the tax unbalance management and the level of reserves
6 Estimated at 29%. Actual GDP 0.4%+
IPI [Implicit Price Index] 28.4%
The decrease in the Monetary Base creation
pace was accounted for by the strong placement of BCRA debt instruments (Repurchase Agreements and Lebacs), which absorbed 62%
of the expansion derived from tax assistance to the government7 and the purchase of foreign currency from the private
sector.
| |
Monetary Base | | |
Expansion Factors | | |
Purchases Reserves | | |
Hedging | |
| |
|
Avg. | | |
| | |
| | |
| | |
Foreign | | |
BCRA | | |
Billion | | |
| | |
| | |
| |
| |
|
Dec | | |
Var. % | | |
Var. ARS | | |
Govt. | | |
Currency | | |
Bonds | | |
USD | | |
Var. | | |
Stock | | |
Res. /MB | |
2007 | |
| 96 | | |
| 25 | % | |
| | | |
| -5 | | |
| 32 | | |
| -7 | | |
| 10 | | |
| 14 | | |
| 46.2 | | |
| 150 | % |
2008 | |
| 106 | | |
| 10 | % | |
| 10 | | |
| -8 | | |
| -3 | | |
| 21 | | |
| -1 | | |
| 0 | | |
| 46.4 | | |
| 149 | % |
2009 | |
| 119 | | |
| 11 | % | |
| 12 | | |
| 0 | | |
| 13 | | |
| -1 | | |
| 3 | | |
| 2 | | |
| 48.0 | | |
| 154 | % |
2010 | |
| 156 | | |
| 32 | % | |
| 37 | | |
| 19 | | |
| 46 | | |
| -28 | | |
| 12 | | |
| 4 | | |
| 52.2 | | |
| 133 | % |
2011 | |
| 210 | | |
| 35 | % | |
| 54 | | |
| 39 | | |
| 13 | | |
| 2 | | |
| 3 | | |
| -6 | | |
| 46.4 | | |
| 95 | % |
2012 | |
| 292 | | |
| 39 | % | |
| 82 | | |
| 60 | | |
| 41 | | |
| -19 | | |
| 9 | | |
| -3 | | |
| 43.2 | | |
| 72 | % |
2013 | |
| 362 | | |
| 24 | % | |
| 70 | | |
| 109 | | |
| -33 | | |
| -6 | | |
| -5 | | |
| -13 | | |
| 30.6 | | |
| 54 | % |
2014 | |
| 443 | | |
| 22 | % | |
| 81 | | |
| 181 | | |
| 33 | | |
| -133 | | |
| 6 | | |
| 1 | | |
| 31.4 | | |
| 61 | % |
Source: BCRA
The BCRA reserves totaled USD 31,443 million
by the end of 2014, increasing by USD 844 million, as a result of the purchase of foreign currency from the private sector in the
amount of USD 5.9 billion, swap transactions with China and purchase of Lebacs in dollars, which contributed USD 3 billion, and
notes for USD 8 billion used to tackle the tax deficit in dollars and payment of the debt.
Consistently with the lower growth of aggregates,
the financial activity slowed down. Dual currency deposits and credits grew by 26% and 20%, respectively.
Financial system liabilities and assets reached
22% and 15% of the GDP respectively, and financial penetration remained stable, even in the context of economic slowdown. Such
ratios continue to be very much below those reached by other financial systems in the region.
7 It includes deficit for Lebac interest.
As regards deposits, 2014 the trend observed
in the last few years continued throughout 2014, as there was a higher growth of private sector deposits compared to public sector
deposits, as a result of the permanent tax deficits of the National Government and the provinces.
Private deposits rose by 29% (71% of the Financial
System), totaling ARS 684 billion, and public deposits rose by 18%, reaching ARS 227 billion.
Total private deposits in pesos (91% from private
sector deposits) increased by 28%, where demand deposits (checking account and savings account) grew by 30%, and time deposits
rose by 26%.
As regards profitable assets, the financial
system grew in total loans by 19%, and at the same time doubled its Lebac holdings, totaling ARS 617 billion, and ARS 198 billion,
respectively. The Lebac-Loan ratio increased from 19% in the year 2013 to 32% in the year 2014.
Private loans, 94% of the total, totaled ARS
577 billion, thus increasing by 20%, which shows a marked slowdown compared to the previous years, on account of the brake on growth
and the rise induced by the BCRA after the January devaluation.
Within private loans, the consumer segment
(personal loans, and credit cards) led placements, growing by 27%, while loans to companies only rose by 19%.
| |
| | |
| | |
DEPOSITS | | |
| | |
| | |
| | |
| | |
LOANS | | |
| | |
Lebac FS | |
| |
| | |
Private | | |
| | |
| | |
Public Total | | |
| | |
Private | | |
| | |
Public | | |
Total | | |
Total | |
billion | |
Demand Time | | |
Total | | |
USD | | |
Total | | |
Total | | |
Commer. | | |
Cons. | | |
Guar. | | |
Total | | |
| | |
| | |
| |
Dec-10 | |
| 113 | | |
| 93 | | |
| 206 | | |
| 11.5 | | |
| 250 | | |
| 111 | | |
| 361 | | |
| 94 | | |
| 66 | | |
| 30 | | |
| 19 | G1 | |
| 20 | | |
| 211 | | |
| 51 | |
Dec-11 | |
| 144 | | |
| 125 | | |
| 269 | | |
| 12.1 | | |
| 316 | | |
| 124 | | |
| 439 | | |
| 139 | | |
| 99 | | |
| 44 | | |
| 282 | | |
| 27 | | |
| 310 | | |
| 23 | |
Dec-12 | |
| 196 | | |
| 185 | | |
| 381 | | |
| 7.8 | | |
| 410 | | |
| 161 | | |
| 571 | | |
| 176 | | |
| 132 | | |
| 58 | | |
| 366 | | |
| 35 | | |
| 401 | | |
| 75 | |
Dec-13 | |
| 247 | | |
| 242 | | |
| 489 | | |
| 6.7 | | |
| 529 | | |
| 193 | | |
| 722 | | |
| 223 | | |
| 181 | | |
| 75 | | |
| 479 | | |
| 41 | | |
| 520 | | |
| 98 | |
Dec-14 | |
| 320 | | |
| 304 | | |
| 624 | | |
| 7.2 | | |
| 684 | | |
| 227 | | |
| 911 | | |
| 266 | | |
| 230 | | |
| 81 | | |
| 577 | | |
| 40 | | |
| 617 | | |
| 198 | |
| |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
2010 | |
| 35 | % | |
| 28 | % | |
| 32 | % | |
| 15 | % | |
| 29 | % | |
| 63 | % | |
| 38 | % | |
| 44 | % | |
| 38 | % | |
| 17 | % | |
| 37 | % | |
| 17 | % | |
| 35 | % | |
| 17 | % |
2011 | |
| 27 | % | |
| 34 | % | |
| 30 | % | |
| 5 | % | |
| 26 | % | |
| 12 | % | |
| 22 | % | |
| 48 | % | |
| 49 | % | |
| 46 | % | |
| 48 | % | |
| 35 | % | |
| 47 | % | |
| -55 | % |
2012 | |
| 36 | % | |
| 48 | % | |
| 42 | % | |
| -36 | % | |
| 30 | % | |
| 30 | % | |
| 30 | % | |
| 27 | % | |
| 34 | % | |
| 30 | % | |
| 30 | % | |
| 27 | % | |
| 29 | % | |
| 227 | % |
2013 | |
| 26 | % | |
| 31 | % | |
| 28 | % | |
| -14 | % | |
| 29 | % | |
| 20 | % | |
| 26 | % | |
| 27 | % | |
| 37 | % | |
| 31 | % | |
| 31 | % | |
| 18 | % | |
| 30 | % | |
| 32 | % |
2014 | |
| 30 | % | |
| 26 | % | |
| 28 | % | |
| 7 | % | |
| 29 | % | |
| 18 | % | |
| 26 | % | |
| 19 | % | |
| 27 | % | |
| 8 | % | |
| 20 | % | |
| -3 | % | |
| 19 | % | |
| 101 | % |
Throughout the year 2014, the BCRA strengthened
the credit line for productive investment [LIP8] policy, with the LIP stock reaching ARS 123.4 billion, equivalent
to 21% of the total private sector loan portfolio.
Furthermore, the BCRA introduced a maximum
reference lending rate scheme for the consumer (credit cards and personal loans) and loans secured by pledge segments, as a mechanism
to encourage credit demand.
Systemic liquidity (Cash + Repos and Lebac
Holdings) rose from 33% to 45% compared to deposits in December 2014, due to the rise in Lebac holding by the Financial System.
Interest rates also rose in the year, being
the balancing entry to the deceleration of money supply.
Throughout the year, the borrowing rate gradually
decreased due to the excess of funds. The BCRA established a regulation mechanism, and fixed a minimum borrowing rate for depositing
customers with time-deposit holdings of less than ARS 350 thousand. Such rate was fixed based on the Lebac rate of the shortest
tranche paid by the BCRA.
The financial system showed changes in its
operation resulting from the monetary and sectorial policies defined by the BCRA. There was an increase in monetary absorption
assets along with the limits on financial and non-financial income related to the search for greater financial penetration and
“bankarization” in the economy.
Consequently, the financial system soundness
was increased. Positive results have been achieved for nine years so far, with Shareholders’ Equity amounting to ARS 168.1
million this year, showing a 38% increase, and exceeding by 89% the minimum required by the BCRA.
The solvency of the financial system would
make it possible to deal with contingent scenarios of economic volatility.
| |
Unit | |
2006 | | |
2007 | | |
2008 | | |
2009 | | |
2010 | | |
2011 | | |
2012 | | |
2013 | | |
2014 | |
| |
| |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| |
Assets | |
Billion ARS | |
| 258.4 | | |
| 298.0 | | |
| 346.8 | | |
| 387.4 | | |
| 510.3 | | |
| 628.4 | | |
| 790.0 | | |
| 1,004.9 | | |
| 1,341.3 | |
| |
| |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Private Loans | |
Var. % | |
| 26 | % | |
| 29 | % | |
| 41 | % | |
| 12 | % | |
| 35 | % | |
| 47 | % | |
| 30 | % | |
| 30 | % | |
| 19 | % |
| |
| |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Liabilities | |
Billion ARS | |
| 225.4 | | |
| 261.1 | | |
| 305.4 | | |
| 339.0 | | |
| 452.8 | | |
| 558.3 | | |
| 699.2 | | |
| 883.1 | | |
| 1,173.2 | |
| |
| |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Deposits | |
Var. % | |
| 24 | % | |
| 21 | % | |
| 14 | % | |
| 14 | % | |
| 38 | % | |
| 22 | % | |
| 30 | % | |
| 26 | % | |
| 27 | % |
| |
| |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Shareholders’ Equity | |
Billion ARS | |
| 33.0 | | |
| 36.8 | | |
| 41.4 | | |
| 48.3 | | |
| 57.6 | | |
| 70.1 | | |
| 90.8 | | |
| 121.8 | | |
| 168.1 | |
| |
| |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Gain or Loss | |
Billion ARS | |
| 4.3 | | |
| 3.9 | | |
| 4.8 | | |
| 7.9 | | |
| 11.8 | | |
| 14.7 | | |
| 19.4 | | |
| 29.1 | | |
| 45.9 | |
| |
| |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
ROA | |
% | |
| 1.9 | % | |
| 1.5 | % | |
| 1.6 | % | |
| 2.3 | % | |
| 2.8 | % | |
| 2.7 | % | |
| 2.9 | % | |
| 3.0 | % | |
| 5.6 | % |
| |
| |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
ROE | |
% | |
| 14.3 | % | |
| 11.0 | % | |
| 13.4 | % | |
| 19.2 | % | |
| 24.4 | % | |
| 25.3 | % | |
| 25.7 | % | |
| 26.2 | % | |
| 45.7 | % |
| |
| |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Private Portfolio Irregularity | |
% | |
| 4.5 | % | |
| 3.2 | % | |
| 3.1 | % | |
| 3.5 | % | |
| 2.1 | % | |
| 1.4 | % | |
| 1.7 | % | |
| 1.7 | % | |
| 1.8 | % |
| |
| |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Leverage-Liabilities/ Shareholders’
Equity | |
Times | |
| 6.8 | | |
| 7.1 | | |
| 7.4 | | |
| 7.0 | | |
| 7.9 | | |
| 8.0 | | |
| 7.7 | | |
| 7.3 | | |
| 7.0 | |
Source: BCRA
8 Spanish Abbreviation for Línea
de Crédito para Inversiones Productivas.
Corporate Banking
Strategies
and Actions
For the fiscal year 2014, our commercial action
strategy was mainly focused on achieving the following goals:
· Dealing
with all segments of corporate banking customers, especially the micro-business, small-business and agribusiness segments, taking
advantage of the benefits that our extensive network of branches offers to us nationwide.
· Increasing
funding to companies through a wide offer of credit products tailored to the profile and needs of each customer, and generating
sustainable business deals which make our customers’ life easier.
· Contributing
to the economic development of the regions in which we operate, in transactions and operations with a good repayment capacity and
proper guarantees.
· Strengthening
the sale of transactional products to companies, focusing on payment and collection services provided to medium-sized and large
companies, and on Foreign Trade.
· Maximizing
profitability by taking advantage of new business opportunities with existing and new customers, ensuring financial margins, increasing
fee income, and continuing with cross selling commercial actions and building up our customer value chain.
· Consolidating
the atomized growth of funding sources.
· Consolidating
the Cash Management service model, distinguishing the wholesale sector (Corporate Banking and Megra [Medium- and Large-Sized Companies]
Banking) from the retail sector (PYMEs [Small- and Medium-Sized Companies] and Agribusiness Banking).
Corporate
Banking Situation
Like in previous years, the goals set for 2014
were to continue consolidating our leadership position in the corporate business, achieving a growth rate above the average rate
in the banking system as regards the loan and deposit portfolio, and furthermore to increase, by means of crossed actions, the
sale of associated transactional products.
In this respect,
the following was fundamental:
· Consolidation
of the decentralized corporate service model, and its corresponding management structure in the network of branches.
· Strong
support, like in previous years, to Small Companies, mainly in the Small- and Medium-Sized Companies and Agribusiness segments.
· The
constant search to improve our offer of products and services, in order to adjust them to the needs of each segment and meet the
highest standards of quality and service.
· To
strengthen the loyalty of our customers through new sales of products and services that meet the financial and transactional needs
of each company, and through the generation of mass placement campaigns for micro-businesses and small companies.
· To
maintain the sustained growth of our portfolio of Demand and Time Deposits.
In 2014, the loan portfolio of Corporate Banking
(Small- and Medium-Sized Companies, Micro-Businesses, Megra [Medium- and Large-Sized Companies] and Agribusiness segments) showed
again significant results, and reached a 16.9% accumulated growth in the loan portfolio.
This improvement was driven by the increase
in loans secured by pledge (31%), Discounted Checks (35%), Construction Stage Completion Certificates (39%), Credit Cards (63%),
and Warrants (50%).
Like in the previous year, the contribution
of the Small- and Medium-Sized Companies segment was fundamental, which showed a 22% growth.
The deposit portfolio showed a favorable performance,
mainly in local currency deposits, which grew by 28%, and allowed to mitigate the lower growth of balances in US dollar accounts.
In this respect, deposits (Small- and Medium-Sized Companies, Micro-Businesses, Megra [Medium- and Large-Sized Companies] and Agribusiness
segments) rose by 27% in 2014, thus exceeding the performance of financing granted, and allowing to improve the sound relationship
between loans and deposits.
Composition of Corporate Banking Portfolio | |
2014 | | |
2013 | |
Corporations | |
| 0.8 | % | |
| 0.7 | % |
Medium-sized companies | |
| 2.5 | % | |
| 2.5 | % |
Small- and medium-sized companies [PYMEs] | |
| 20 | % | |
| 19.4 | % |
Micro-businesses | |
| 56.1 | % | |
| 56.8 | % |
Agribusiness | |
| 20.5 | % | |
| 20.6 | % |
% of Corporate Customers by region | |
2014 | |
Jujuy | |
| 2.74 | % |
Argentine Northeast (NEA) | |
| 4.84 | % |
Salta | |
| 5.99 | % |
Tucumán | |
| 2.25 | % |
West | |
| 4.31 | % |
Patagonia | |
| 3.17 | % |
Buenos Aires | |
| 20.04 | % |
Córdoba | |
| 23.19 | % |
Santa Fe | |
| 33.47 | % |
Agribusiness
Banking
For this segment, the year 2014 was less problematic
in climatic terms than the preceding year, which favorably impacted on the yields of traditional crops. In those areas with a greater
production potential, there were yields in accordance with historical averages, though no record was broken. Some areas managed
to reverse the bad yields of the previous two years.
In spite of that, the sector continues to be
subject to tax measures and export controls, which affects its overall profitability, for which reason the dynamism of the activity
has reached a plateau.
We continued to assist our portfolio of almost
15,000 agribusiness customers, by increasing working capital financing, and more importantly, supporting the level of investments
along the agribusiness chain. Furthermore, in the IV and V tranches of the Credit Line for Production Investment, more than ARS
578 million was paid off in 964 investment projects.
The good management of MacroAgro Cards made
the product growth cycle continue, by improving effectiveness in the activation of accounts, as well as increasing the volumes
of consumption and portfolio balances by 51% and 62%, respectively, thanks to the continuous commercial management of new alliances.
Small- and Medium-Sized Company (“PYME”)
Banking
In the decentralized corporate service model,
we can observe in “PYME” Banking the best reflection of its results. Our wide Network of branches allows us to get
to the Small Companies and Micro-Businesses located nationwide, positioning us as leaders of the market in the main regions of
the provinces.
In 2014, the credit portfolio of “PYME”
Banking grew by 22%. The most significant increase was observed in discounted checks, loans secured by pledge, and other advances.
Under the framework of the Production Investment
Credit Line, the Bank managed to finance successfully investment projects to more than 1,500 companies, for a total amount of ARS
935 million. In this respect, the Bank’s strategy was fundamental, which consisted of allocating almost 76% of the funds
for the financing of the “MiPyme”9 segment, seeking to get to a greater number of customers with a wide
offer of products under a quick approval system.
As regards the performance of the Bank’s
liabilities, we should highlight the importance of Small Companies and Micro-Businesses as a source of funds, which reached a 37%
year-on-year growth, and contributed 66% of the total deposits of Corporate Banking.
9 “My Small-/Medium-Sized
Company”
With the aim of providing the best service
to our customers, during 2014 we consolidated the Macro PYME XXI package, designed to satisfy the requirements of
our “PYMEs”, since it provides for transactional services and flexible credit lines. This year, the Macro PYME
XXI package was delivered to 10,063 companies. Furthermore, “Prenda ágil” (Expeditious Pledge)
incorporated in 2013, reached 186 transactions in 2014, for a total amount of ARS 57 million, thus fulfilling the expectations,
and becoming a highly useful tool, for the financing of vehicles and agricultural machines for our “PYMEs”.
“Prenda
ágil” (Expeditious Pledge) |
Segment | |
Amount | | |
Number of transactions | |
Agribusiness | |
| 2,406,446 | | |
| 10 | |
Micro-businesses | |
| 32,200,915 | | |
| 108 | |
Small companies | |
| 13,512,216 | | |
| 44 | |
Shareholders | |
| 523,800 | | |
| 2 | |
Grand total | |
| 48,643,377 | | |
| 164 | |
Other productive lines
We continued to finance Imports and Exports
for a total amount of USD 33,984,434. In turn, we granted confirmed Import Letters of Credits for € 370,335 and USD 33,313,671.
We issued a credit line so that contractors
for the company ENERSA (Energía de Entre Ríos S.A.) could acquire new vehicles or machinery, and we continued
to offer credit lines for the reactivation of production and for the promotion of regional exports in connection with the Consejo
Federal de Inversiones10.
Consejo Federal de Inversiones Line |
Segment | |
Original amount
Sum | |
Agribusiness | |
| 2,769,532 | |
Retired/Pensioners | |
| 135,000 | |
Over-the-counter market | |
| 1,823,560 | |
Micro-businesses | |
| 2,375,000 | |
Small companies | |
| 1,644,120 | |
Salary Plan | |
| 2,094,400 | |
Professionals and Business | |
| 8,263,498 | |
Grand total | |
| 19,105,110 | |
10
An entity created among all the Argentine provinces under a Federal Pact, whose mission is to promote the harmonious and integral
development of the country in order to improve the living conditions of its inhabitants.
Personal Banking
Strategies and Actions
The strategic goals defined for Personal Banking
have been satisfactorily achieved. We have continued with the participation in the market of the lines oriented to the financing
of consumption, maintaining a sustained leadership and the competitive positioning of the portfolio of personal loans, as well
as a significant growth in credit cards.
Along that line, and in pursuit of continuing
to grow in the credit card market, we intensified actions tending to achieve an increase in total consumption and assets. The credit
quality of the portfolio was maintained through the optimization of the relationship between risk and benefit with respect to our
customers. Furthermore, we enhanced the use of our customers’ information as a tool to generate better commercial sale and
loyalty development actions, and improved operations to prevent delays in payment.
Worthy of mention is the fact that we were able to consolidate the
increase in number of customers in the entire developed segment, which now amounts to more than 150,000 customers, and this represents
6% of the total portfolio.
Personal Banking in Figures
As a result of these actions, the Personal
Banking loan portfolios grew by 21% in 2014, thus the Bank remained in the second place among the financial system institutions,
due to the volume of its portfolios of personal loans and credit cards. The greatest growth occurred in the following segments:
Public Salary Plan, 27%, the Retired, 25%, Professionals and Business, 22%, and Private Salary Plan, 11%.
As regards the Personal Banking deposit portfolios,
there was a 29% growth during the same period. Demand deposits increased by 20%. The greatest growth occurred in the Public Salary
Plan segment (26%); these deposits increased by 21% in the Private Salary Plan, 19% in the Retired segment, and 14% in the Professionals
and Business segment. As regards time deposit portfolios, there was a 35% increase; these deposits grew by 39% in the Private Salary
Plan, 39% in the Retired segment, 34% in the Public Salary Plan, and 29% in the Professionals and Business segment.
The implemented actions, and the coordination
of such actions based on the potentiality of each of the regions where the bank operates, made it possible for the growth in the
loan and deposit portfolios to be that expected.
Products
· Personal
Loans
During 2014, this portfolio grew by 16%, which
represents a net increase of ARS 2,200 million.
This portfolio growth was strengthened by the
increase in the Public Salary Plan and the Retired segments, which grew by 19% and 32% respectively.
These figures allow us to reach a 14% market
share as a group, achieved as a result of our continuing with the mass communication strategy started in 2013. In addition to the
communication tools already used, mainly based on mobile devices, we included the Pre-Approved Loan notice, through an alert on
the Bank’s Homebanking page.
With all these tools, we were able to send
around 17,000,000 communications to inform about Pre-Approved Loans.
With the aim of improving the service and streamlining
the granting of Loans, we developed internal campaigns to encourage lending through automatic channels. Lending amounted to above
ARS 500 million through those channels, which represents an increase of more than 150% compared to the previous year.
· Credit
Cards
The year 2014 shows again a strong growth in
consumption, which exceeds 43%, while assets increased by 35%.
Credit cards were issued in connection with
around 250,000 accounts. This amount is below the number of account-connected credit cards granted in the previous year, as a consequence
of our decision to reduce the issue of credit cards through the marketer channel. We have redefined this strategy, and put our
efforts in the professionalization of credit card sales. We estimate that the results of this conversion will be obtained around
the middle of 2015.
Given this lower-acquisition scenario, Banco
Macro redirected its strategy to an aggressive telemarketing action program designed to improve indicators, the most outstanding
of which are the following:
o Activation of the product.
o Increased consumption.
o Cross selling and product upgrade actions
o Actions tending to prevent the loss of
customers.
o Actions to increase mass and focused limits.
The implementation of recurring actions involving
approximately 70,000 contacts impacted heavily on the use of credit cards, which made us observe, through the average consumption
of around 2,840 per account, a 46.5% growth of this indicator.
We implemented a strong strategy for getting
customers to opt for the credit card e-statement (our electronic credit card statement), which made possible a considerable increase
in the number of accounts held by those who chose this option from 100,000 to 360,000 accounts. Additionally, we worked to achieve
greater efficiency and saving in the service, and better tools, giving us the possibility of building customer loyalty through
the communication of promotions and benefits.
E-statement option chosen | |
2014 | | |
2013 | |
Membership | |
| | | |
| | |
Customers subscribed to the service (i) | |
| 443,185 | | |
| 359,782 | |
Customers holding accounts | |
| 329,138 | | |
| 320,844 | |
Customers holding credit cards | |
| 265,940 | | |
| 173,668 | |
Accounts | |
| | | |
| | |
Checking account | |
| 9,884 | | |
| 9,774 | |
Savings account | |
| 140,379 | | |
| 136,010 | |
Packages | |
| 225,977 | | |
| 190,596 | |
Cards | |
| | | |
| | |
Visa | |
| 226,271 | | |
| 145,043 | |
Master | |
| 114,447 | | |
| 51,359 | |
American Express | |
| 9,421 | | |
| 4,433 | |
(i) Membership may refer to more than one product. |
Loyalty, MacroPremia [Macro Rewards], and Aerolíneas
Argentinas programs have exceeded by 10% the expected membership goal. In 2014, 750,000 customers participated in the MacroPremia
program, and we got 45,000 customers who enrolled in the Aerolíneas Plus program.
As regards the portfolio performance, it became
the most outstanding aspect. During the last quarter of the year, there was an increase in the outcome above 130% compared to the
same period of the previous year. This was achieved through a strong strategy which consisted of increasing fees and reducing funding
costs which did not affect the business volume.
Furthermore, in the last quarter, we launched
the American Express Platinum product, which was optimized through an incentive agreement achieved in 2014.
We will continue to be focused on the optimization
of the product profitability with savings in processing. We plan to shorten deadlines, in both e-statements and paper statements,
so as to optimize float time and its corresponding impact on profitability.
Additionally, we will begin to conduct micro-segmentation
actions with an internal development, intended for activation actions, increase in consumption, holding of the product, and for
making the product profitable. These actions will be focused on enhancing a segment/product model so that it will be more efficient
and consistent with improving the customer’s experience.
· Debit
Cards
This product occupies a prominent place within
the strategy aimed at generating a greater transactional relationship with customers, which encourages the use of the accounts.
Its supplementary objective is the development of checking account balances by reason of the growth in deposits in transactional
accounts, which thus increases the base of demand deposits.
Because of this strategy, the transactional
level showed a 45% increase in the monetary volume of purchase operations, and exceeded by 2 points the Visa system growth for
the same period. It should be mentioned that the number of purchase transactions grew above 15% in the year. Both improvements
are the result of the implementation of promotional actions and benefits for different segments of customers in different areas
according to their needs.
The number of Debit Cards currently exceeds
2,406,250, representing a portfolio growth of approximately 6.5%.
· Retail
funding and investments
Within the framework of regulation “A”
5640, the Bank adjusted its systems and circuits to provide its customers with the possibility of making transactions at regulated
minimum rates.
Furthermore, for those transactions to which
such regulation does not apply, we continued to implement the policy of properly paying interest on Time Deposits, which allowed
us to retain 10% of the market of deposits of less than one million Argentine pesos.
The commercial strategy included the development
of the “Professionals and Business” segment, with two new products available to it: Valora Comercial and Selecta
Comercial.
Finally, among the investment alternatives
during the year, we continued to work on inquiry and Mutual Fund purchase multi-channeling.
Supplementary Services
· Accounts
and Packages
Accounts and Packages constitute one of the
main “promoters” of fee income, and for this reason, we have worked on the life cycle of packages, by promoting loyalty
development actions, and the retaining of our products.
Furthermore, the use of the Debit Card was
strongly encouraged and driven through an integral offer of products and services to the new segment from the program “Acá
nomás” (Right Here), additionally with actions for the promotion of differential benefits for the entire portfolio
of packages: discounts on fuel, hairdressing, cinema and theater tickets; promotions at pharmacies for retirees, amongst others.
Within the context of the business optimization
project, we continued working intensively on a gradual process of migration from paper statement to digital statement.
· Insurance
As regards insurance, the business continued
to grow during 2014, maintaining the leadership achieved in the individual customer insurance banking market.
To improve the offer, we implemented new products
especially designed to provide a customized service to customers from certain segments, such as, “Protección en
Vía Pública Plan Premium” [Street Protection Premium Plan] for the Selecta segment, and “Macro
Comercio” [Macro Business] for the Professionals and Business segment.
In short, the total actions performed throughout
the year contributed to the growth of the stock to around 10% in the number of policies, in addition to the increase in the commissions
earned, the result of which was remarkably higher compared to the previous year.
· Products
and services with social value
In 2014 we continued to work for greater tax
formalization, accessibility and good understanding of the financial products.
- Social Card: Together with UOCRA11,
we offered to a traditionally “non-bankarized” segment the opportunity to have access to loans at competitive rates.
56 million active cards, 10 million new members in the year, ARS 80 million in consumption.
- UOCRA social network: 766 active accounts
per month on average, ARS 8,642,900 in accumulated consumption, 30 new members in the year.
- Personal Loans in municipalities: A new agreement
with the Municipality of General Juan
Madariaga was signed. In
addition, 4,323 customers received loans totaling ARS 166 million; the average loan amount was ARS 38,400.
- Insurance for education: The volume of the
portfolio was around 3,500 policies.
- | Payment protection insurance: In the event of unemployment or disability.
The portfolio volume was around 130,000
policies. |
- | Loans for Natural Gas facilities: 2,521 new homes were connected to the
gas network thanks to the financial
aid of ARS 14.1 million, mainly in the province of Tucumán. |
- | Free Universal Account: 7,201 customers were the beneficiaries/owners of the product
issued by the BCRA. |
- | Loan line for beneficiaries of the universal child allowance: 8,289 loans in the amount
of ARS 20.3 million. |
- | Loan line through ATMs: 50,273 loans in the amount of ARS 256.7 million. |
- | Loan line through MacrOnline: 5,556 loans in the amount of ARS 49.8 million. |
- | Telephone loan line: 8,436 loans in the amount of ARS 91.5 million. |
- Rapicompra loan line: 7,413 loans
in the amount of ARS 40.9 million.
- Banking and financial products: The
Bank’s insurance offer was adjusted so that a product consistent with the market need can be provided. Furthermore, in
order to protect the retired, we continued with the marketing of Personal Accident and Burial insurance; to protect minors,
Macro Education insurance; and to cover unemployment and disability, Payment Protection insurance.
In March, we bankarized 8,000 beneficiaries
from “Plan Progresar”, the national program supporting students between 18 and 24 years old. Nowadays, the Bank
has 25,176 beneficiaries.
11 Argentine Construction Workers Trade Union.
Actions by segment
· Mass
Segments
We have applied different strategies for the
development of the Retired and Salary Plan segments, and we have created a new segment named "Professionals and Business".
For the Retired segment, the number of beneficiaries
who are paid their salaries in the Bank remained at 615,000. We continued with the financial education program "Animate
a Aprender” [Give yourself the chance to learn] already implemented in 28 branches of 5 regions of the country: Tucumán,
Salta, Jujuy, Mendoza and Buenos Aires, and which also benefited 122,899 retirees who were trained in the use of ATMs, as well
as in the use of the debit card and its benefits. Furthermore, during 2014, and in association with Fundación Educando,
we trained more than 430 elderly individuals in the use of computers in San Pedro, Jujuy, also including a financial education
module linked to bank transactions.
Additionally, we sent direct marketing pieces
to welcome the new retirees whom were allowed access to exclusive benefits.
Along this line, we organized campaigns to
encourage the use of debit cards, conducting actions in stores frequently attended by the segment. These campaigns allowed 71%
of the Retired to use the Automated Teller Machine, and 36% to make purchases with the debit card, thus contributing to increasing
the channel value by 15%.
As regards service in branches, the Bank has
24 specialized payment centers for the retired, and proper infrastructure for their mobility (non-slip floors, special bathrooms,
and exclusive seats) and 450 additional branches for general service, distributed throughout the country, with specific benefits
for this specific public, and special building characteristics:
· Specific
cashier’s desks for the retirees to receive their pension.
· Survival
statement renewal window.
· Unlimited
and free-of-charge withdrawal of money up to the pension amount, at any ATM.
· TV
monitors and screens playing informative videos about the Bank and the ANSES [Argentine Social Security Administration].
The Retired Segment | |
2014 | | |
2013 | |
Number of retirees who received loans (1) | |
| 176,272 | | |
| 184,412 | |
Total amount of loans (2) | |
| 2,214 | | |
| 2,193 | |
Total amount of pensions paid (2) | |
| 3,324 | | |
| 2,523 | |
Number of centers | |
| 24 | | |
| 24 | |
Number of retirees served in these centers per month | |
| 160,873 | | |
| 158,776 | |
Number of retirees served in the year | |
| 549,461 | | |
| 500,564 | |
(1) Individuals/retirees who got a loan
(2) Amount in millions of Argentine pesos
With regard to the Salary Plan segment, actions
with our corporate customers, and the new system for grading agreements and their employees, enabled us to make new salary plan
agreements, and consolidate our relationships with corporations, medium- and large-sized companies to which we are providing the
salary payment service. These actions, along with the tasks conducted in each group of companies and region where they operate
through our network of branches, have generated an annual growth of 7% in current agreements, and 4% in salary payment service
agreements, which allowed a growth of 21,000 salary plan customers and resulted in a 35% increase in the segment value. Thus the
new service model that the Bank has been developing for the last few years is now consolidated, which enables us to know our corporate
customers better, and connect with their Human Resources areas through invitations to Exclusive Events, special Proposals tailored
to the specific characteristics of the company, its payroll, etc.
During 2014, we developed the new segment "Professionals
and Business" primarily aimed at individuals engaging in commercial activity (traders, freelance professionals, service providers
and producers), enhancing products and services that meet their credit and investment needs.
This allowed us to get to a total of 202,000 customers in the segment,
attracting new customers, and providing an offer according to their profile.
Selecta Segment
During 2014 we launched the new brand and image
of Banco Macro High Value banking, which we named “Macro Selecta”. This involved a redefinition of the layout
for Centers and Spaces in branches, a new service and management model for these customers.
The High Value customer portfolio was defined
under segmentation parameters, which resulted in the initiation of the application of banking precise metrics. Having identified
the High Value customer portfolio, we began to plan the opening of Macro Selecta centers and spaces throughout the country.
The plan provides for personalized multi-channel
service for these customers, under the premise that they should be identified in all the service channels that the Bank already
has, and in those it will develop, with those customers receiving exclusive assistance in each of them.
As part of the strategy of the Bank to provide
exclusivity, we created Macro Selecta Privado for our best customers to be assisted and served as an executive 24
hours a day, 365 days a year, thus making a competitive difference in the financial market.
Macro and its collaborators
Banco Macro Works to deliver a beneficial,
inclusive and safe work environment to its employees, promoting both their personal and professional development.
Human Capital in numbers | |
2014 | | |
MEN | | |
WOMEN | |
Total collaborators | |
| 8,641 | | |
| 5,415 | | |
| 3,226 | |
By antiquity | |
| | | |
| | | |
| | |
Less than 5 years | |
| 2,046 | | |
| 1,138 | | |
| 908 | |
Between 9 and 5 years | |
| 1,331 | | |
| 642 | | |
| 689 | |
Between 10 and 14 years | |
| 645 | | |
| 375 | | |
| 270 | |
Between 15 and 19 years | |
| 1,421 | | |
| 815 | | |
| 606 | |
Between 20 and 24 years | |
| 1,147 | | |
| 869 | | |
| 278 | |
Between 25 and 29 years | |
| 702 | | |
| 544 | | |
| 158 | |
More than 30 years | |
| 1,349 | | |
| 1,032 | | |
| 317 | |
By professional category | |
| | | |
| | | |
| | |
Top Management | |
| 22 | | |
| 19 | | |
| 3 | |
2nd Line Management | |
| 52 | | |
| 43 | | |
| 9 | |
Chief/Supervisor/Branch Managers | |
| 2,064 | | |
| 1,546 | | |
| 518 | |
Analyst/ Officers | |
| 3,224 | | |
| 1,677 | | |
| 1,547 | |
Rest of the Staff | |
| 3,279 | | |
| 2,130 | | |
| 1,149 | |
By age range | |
| | | |
| | | |
| | |
Below 30 years old | |
| 1,304 | | |
| 684 | | |
| 620 | |
Between 30 and 50 years old | |
| 4,741 | | |
| 2,787 | | |
| 1,954 | |
Above 50 years old | |
| 2,596 | | |
| 1,944 | | |
| 652 | |
Other indicators | |
| | | |
| | | |
| | |
Average Seniority | |
| 15.67 | | |
| 17.37 | | |
| 12.82 | |
Average Age | |
| 43.21 | | |
| 45.00 | | |
| 40.23 | |
Collaborator breakdown by region and gender |
Collaborators in the City of Buenos Aires and Buenos Aires Greater Metropolitan areas. - Men | |
| 13.91 | % |
Collaborators in the City of Buenos Aires and Buenos Aires Greater Metropolitan areas. - Women | |
| 10.02 | % |
Collaborators in the interior of the Country – Men | |
| 48.76 | % |
Collaborators in the interior of the Country – Women | |
| 27.31 | % |
Collaborators in Central Areas & Branches
breakdown by gender |
Collaborators in Central Areas - Men | |
| 25.05 | % |
Collaborators in Central Areas - Women | |
| 14.30 | % |
Collaborators in Branch Network – Men | |
| 37.61 | % |
Collaborators in Branch Network – Women | |
| 23.03 | % |
Staff distribution by professional category & age range | |
BELOW 30 YEARS | | |
BETWEEN 30 AND 50 YEARS | | |
ABOVE 50 YEARS | |
Top Management | |
| 0 | | |
| 11 | | |
| 11 | |
2nd Line Management | |
| 1 | | |
| 28 | | |
| 23 | |
Chief/ Supervisor/ Branch Managers | |
| 52 | | |
| 1,181 | | |
| 831 | |
Analyst/ Officers | |
| 759 | | |
| 1,875 | | |
| 590 | |
Rest of the Staff | |
| 492 | | |
| 1,646 | | |
| 1,141 | |
TOTAL | |
| 1,304 | | |
| 4,741 | | |
| 2,596 | |
Employee turnover (i) | |
Employees joining the Company | | |
Employees leaving the Company | | |
Turnover Rate | |
Women | |
| 174 | | |
| 130 | | |
| 9.49 | % |
Men | |
| 236 | | |
| 208 | | |
| 8.22 | % |
Total | |
| 410 | | |
| 338 | | |
| 8.69 | % |
(i) Based on an average staff of 3205 women and 5401 men. |
Hiring in 2014 | |
| |
Total hirings | |
| 410 | |
By region | |
| | |
City of Buenos Aires and Greater Metropolitan Areas of Buenos Aires | |
| 162 | |
Other Regions | |
| 248 | |
By gender | |
| | |
Men | |
| 236 | |
Women | |
| 174 | |
By age range | |
| | |
Below 30 years old | |
| 255 | |
Between 30 and 50 years old | |
| 152 | |
Above 50 years old | |
| 3 | |
Commitment to human capital
As to our commitment to development, during
2014 Banco Macro opened branches in the districts of Malargue, San Salvador (Entre Ríos), Villaguay, Cerrillos and Lomas
de Tafi, giving priority to the incorporation of collaborators born in such places. In 2014 we carried out the following actions:
- Generation
of 410 hirings.
- Making
of 115 internal searches and 204 employee promotions, in which we forward internal growth the Bank being self-sufficient in filling
positions.
In addition, we started a revision of all processes
transversely affecting the entire organization to line them up with the vision and principles of Banco Macro. In 3014 we implemented
the new selection, induction process and we started with the evaluation process, while the Bank defined the priority on the next
ones to be revised in 2015.
Employee development and training
In line with the cultural change that seeks
to professionalize and boost the entity’s growth as well as that of its people, Banco Macro moved forward with its training
and integration program both with in-person and distance courses. In this respect, the entity invested more than 114,000 man-hours
in training actions and kept on driving Development Programs focused on management and on key profiles: Liderate, Líderes
en Red, Corporate Banking, Personal Banking and Branch Manager Programs.
Employee Training | |
2014 | | |
2013 | | |
2012 | |
Total Man-hours | |
| 114,760 | | |
| 110,280 | | |
| 77,652 | |
Total participations | |
| 38,873 | | |
| 57,153 | | |
| 29,286 | |
In-person course participants | |
| 9,166 | | |
| 8,087 | | |
| 9,779 | |
Distance courses participants | |
| 29,707 | | |
| 49,066 | | |
| 19,507 | |
Participants | |
| 8,507 | | |
| 8,184 | | |
| 7,223 | |
In-person course participants | |
| 4,028 | | |
| 3,978 | | |
| 5,031 | |
Distance course participants | |
| 8,148 | | |
| 7,652 | | |
| 5,886 | |
Participation % on Total Personnel | |
| 98 | % | |
| 96 | % | |
| 85 | % |
Training man-hours per professional
category |
Top Management | |
| 0.85 | % |
Managers | |
| 1.68 | % |
Chief/ Supervisor | |
| 38.67 | % |
Analyst/ Officers | |
| 38.37 | % |
Employee | |
| 20.43 | % |
Training man-hours per gender |
Internal leadership development
Immersed in a context of change and increasing
competitiveness, Banco Macro Works everyday with the vision of developing sustainable businesses and making life easier for its
customers.
The Bank understands that in order to fulfill
this vision it does not only need to define a strategy, but also to base such strategy on an organizational structure that accompanies
and strengthens such vision. From Human Resources the Bank started leading a plan aimed at boosting cultural change. In this way,
we launched an ambitious program involving more than 1,300 persons in 6 editions, 3 of them in the interior of the country, ratifying
the federal spirit of this entity. This program is part of a plan of cultural change, based on four values: closeness to customers,
self-demand, commitment to development and diligence. The goal of this plan is to generate leaders, understanding leadership as
each person’s ability to generate changes adding value.
Within the framework of this program, we defined
and communicated to all collaborators the 10 Macro rules, a decalogue of the values shared by all those who are part of the Bank.
This program shall continue during 2015 with new editions in different points and organizational levels.
Communication channels to be closer
Aligned with its policy of being closed to
its customers, Banco Macro showed its presence with:
- Visits
of officers and top authorities of the Bank, who permanently go round the branches to be present transmitting the Bank’s
culture and gathering first-hand the concerns and proposals from actual issues.
- 180
visits of the Human Resources team members to Branches in all departments.
- 11
integration sessions and 40 regional activities aimed at strengthening and promoting team work.
Convinced that diligence is transmitted from
inside the organization to the outside, the Bank continued with its decentralized model, where each department has the necessary
autonomy to quickly and efficiently meet the needs of its collaborators, through the following:
- Permanent
intranet redesigning and improvement allowing us more accessibility to regulatory information.
- ProMacro
meetings at Branches and Central Areas
- Rapid
response to our Transparency Postbox channel for Bank members, as a confidential and well-cared-for communication channel, where
employees may submit their concerns.
- Weekly
newsletter for all our managers.
Benefits for employee well-being
· Children’s
Day: the entity handed over 6,000 presents to the children of its employees.
· School
Kits: we handed over 6,591 back-to-school kits.
· Births:
Banco Macro celebrated 214 births with a special welcome gift for the new member of the large Macro family.
· Vaccination
Campaign: once more we carried out a flu vaccination campaign with 5,735 participants.
· Work
Career: the Bank paid tribute to 38 retired employees with an honor that celebrates their work career and performance at the
Bank.
· Secretary’s
Day: Banco Macro celebrated the Secretary’s Day handing over 52 presents.
Work health and safety promotion
Banco Macro carries out integration activities
to bring together employees from different sectors in places outside the office, taking advantage of sports as a key tool to unify
and strengthen bonds. In this way, 200 employees walked together to Luján, 110 collaborators participated in 4 marathons,
60 employees attended training sessions, 120 employees participated in football tournaments and for the second consecutive year
20 women players participated in volleyball tournaments.
In 2014 the Bank offered first-aid, prevention
and fire-fighting courses, courses on ergonomics and accident prevention. Training was carried out through the Bank’s web
site and e-learning courses. This method allowed the Bank to rapidly deliver to its 8,500 employees clear and concise knowledge.
The Maintenance Department, in turn, coordinated
visits to the entire branch network and to central buildings to perform noise; lightning and fire load measurements, among others,
and ensure the work environments are healthy and safe.
During the second semester, we organized training
sessions and evacuation drill exercises at all the Bank’s facilities in the country. In this way, Hygiene and Safety professionals
and technicians, both employed by the Bank and third-party contractors, shared their knowledge on how to proceed in case of emergency
(fire, flood, collapse), fire-fighting systems and first-aid procedures. We also prepared evacuation plans and made official the
emergency roles.
On the other hand, the bank participates in
the Mixed Committee of Hygiene and Safety of the Province of Santa Fe, formed by top leaders of the Bank’s Administration,
Human Resources, Safety, Distribution and Sales management departments in that province, and members who are branch employees and
other employees. The province of Santa Fe gathers 21% of the Bank’s resources, about 1,800 employees, and 122 branches, 22%
of the Bank’s network. The latter hosted about 400 corrective and preventive actions, 30% of all actions developed throughout
the entire country.
2014 indicators
· 5.13
% Absentee Rate
· 108,307
Days lost due to absenteeism
· 0.12%
Absentee rate due to accidents
· 2,595
Days lost due to work accidents
· 2.56%
Absentee Rate due to sick leave
· 54,203
Days lost due to illness
"Generando el cambio" (Generating
Change Program)
During 2014 we worked intensely to offer the
team more and better opportunities to participate in this corporate volunteering program known as “Generando el cambio”.
As a result of this program, 4,669 volunteers donated more than 9,000 hours to different solidary actions:
- 40 volunteering sessions.
- 924 participated in the volunteering sessions.
- 4,620 donated during the volunteering sessions.
- 5,851 beneficiaries of volunteering sessions.
- 5 National fundraising campaigns.
- 1,708 beneficiaries of fundraising campaigns.
- 3,601 volunteers participated in the fundraising
campaigns.
- 83 volunteers acted as sponsors and mentors in several
foundations.
- 830 hours donated by professional volunteers.
- 61 teams submitted their solidary projects.
Service and Quality
In Banco Macro we work every day on building
a care and trust relationship with our customers, whose loyalty does not only depend on product quality but also on the service
they receive.
In this respect, in 2014 most of our efforts
were focused on developing services based on technology, with the end goal of achieving more easy and diligent operations, which
allowed us to:
- Increase the use of Automatic
Channels, evidenced by a 13% increase as compared to the previous year, performing an average of 14.9 million monthly
transactions.
- Move forward in the number of
electronic media users, reaching by December 2014 a total of 464,911 users (a 6% increase as compared to the previous
year).
The Quality Plan integrates the corporate vision
and values, and has two key axes: on the one hand, the measurement and follow-up of all processes affecting customers and making
customers’ lives easier, and, on the other hand, market surveys that allow us to know customers’ opinions. Thus, in
2014:
- We made a customer satisfaction survey
in connection with the Call Center and we obtained a satisfaction score of 8.2.
- We completed the first corporate
reputation diagnosis of Banco Macro, in which we obtained a Global index of 8.16 (out of 10 points).
As part of the work staged of this Corporate
Reputation Plan, we performed an internal shareholder classification, then we carried out surveys in each group of interest, and
as the last stage in the process we designed the first reputation dashboard, aimed at strategically managing the entity’s
trademark image.
- We carried out advertising
pre-tests in Córdoba, Santa Fe, Salta and Tucumán; Personal Banking and Corporate-Scoring report crossing;
media surveys; and survey on customers’ complaints (63% of the customers were satisfied with the way in which their
complaint was finally resolved).
- We made a follow-up of the monitoring
and evaluation of Credit Card and Personal Loan advertising campaigns, measuring retailers’ sales quality.
- We carried out our Opinion Poll
throughout our branch network, incorporating the ideal quality curve in order to analyze the balance between branch yield and
quality delivered. In this way, we identified those branches that fall outside the ideal quality curve and we implemented the
necessary actions in order to adjust such deviations.
Communication and Customer Service channels
All through the year we continued working on
internal policies allowing the promotion of the automatic service for customers, aimed at speeding up both the operations of customers
and branches; always focusing on service quality.
During 2015 we shall work on the evaluation
and implementation of an omnichannel platform aimed at improving the service offered to our customers.
Automatic Channel users (1) | |
2014 | | |
2013 | |
Personal Banking | |
| 406,407 | | |
| 389,209 | |
Corporate Banking | |
| 55,817 | | |
| 51,522 | |
Total | |
| 462,224 | | |
| 440,731 | |
(1) The number of users includes all those who operate through
an automatic channel requiring a ClienteSI Integral Service password (to wit: Macro Direct; Self-service Terminals, IVR and Telephone
Customer Service System).
Number of Transactions
through Automatic Channels | |
Inquiries/ Orders | | |
Monetary | |
Internet (MacrOnline) | |
| 152,997,737 | | |
| 9,134,087 | |
Self-service Terminals | |
| 3,190,819 | | |
| 10,971,152 | |
IVR (automatic customer service) | |
| 1,930,574 | | |
| 7,241 | |
Telephone Customer Service System | |
| 1,314,930 | | |
| 32,614 | |
· MacrOnline
(Home Banking)
During 2014 we posted an ad on MacrOnline intended
to inform our Personal Banking customers about the possibility of getting a personal loan, the amount available and how to apply
for it .
Besides, we implemented the corporate collection
service, delivering the following benefits: safe (avoids moving money and checks to the branch), practical (easy and safe, PDF
receipt, payment history review and receipts), comfortable (available from any PC) and with no additional cost.
Our challenge for next year is to continue
to develop investment operations, including mutual fund and bond buying and selling transactions.
· Macro
Mobile Banking
We launched this channel on October 2010 and
it has continued to develop during this year reaching almost 90,000 users. This year, we doubled the number of total transactions
(8.8B as of December 2013 vs 19.3B as of December 2014) as well as the amounts of monetary transactions reaching 33B per month
(121.9B as of December 2013 vs 277.8B as of December 2014).
In line with user characteristics and the technological
trends that serve as framework for the development of this service, Macro Mobile Banking application is available in the virtual
stores of the principal operating systems (android and app store).
· Automatic
Teller Machines
Grupo Macro ranks as the first bank as regards
the number of Automated Teller Machines (ATMs) of the Banelco Network, with more than 1,300 installed units.
During 2014, we implemented new actions aimed
at maintaining high standards of security, service quality and availability of the ATM Network, by means of preventive training
and management strategies. As a result of this strategy, the average annual service level had a great performance, and this positioned
Banco Macro as one of the best performers for quality of service, an aspect that acquired a special dimension, if we take into
account quantity and geographical spread of the fleet of automated teller machines installed by Grupo Macro.
Furthermore, we continued strengthening and
technologically renewing our ATM fleet. In this respect, we carried out the following actions:
• 435 units were installed (44% for
replacements, 37% for new positions, and 19% for reinforcement of positions).
• 205 automated teller machines
with cash recognition and online deposit crediting.
• We incorporated 40 Machines with
Double Cassette Cash Dispenser capacity.
All these actions resulted in an increase in
transactions, which were more than 140 million, representing a 15% increase compared to the transactional volume of the fiscal
year 2013.
· Self-Service
Terminals
Macro has Self-Service Terminals distributed
across the Branch Network throughout the country, which offer a wide range of operations, and the possibility of making deposits
24 hours a day, 365 days a year. In 2014 we installed 16 Self-Service Terminals, 11 in new positions and 5 replacements. Banco
Macro currently has 838 Terminals, 234 of which are operative 7x24.
In 2014 we incorporated the smart check deposit
functionality intended to reduce operating tasks in the Branches, having a highly satisfactory result also for customers and evidencing
the following advantages:
· Safe:
customers get a ticket with an image of the checks.
· Easy:
customers enter a total amount, and not one by one the amount of each check.
· Fast:
faster than using an envelope.
In the initial stage, we installed 76 terminals
in 54 branches. During 2015 we shall work on an integral installation plan to reach the entire branch network.
· Call
Center (CAT)
Through the Call Center, our customers have access to a quick and
effective service whereby they can perform different operations and make inquiries, under two systems:
| · | Personalized service provided by highly
trained staff. |
| · | Automatic service supported by state-of-the-art
technology available 24 hours a day, every day of the year. |
As regards automatic service, in 2014 we made a change in the platform,
which allows an easier, faster and personalized navigation according to customer segment and the products customer has. The new
menu optimizes navigation, the duration of the call and adds new information to the existing functions.
During 2015 we shall implement an automatic call center for Macro
Selecta Customers, in order to offer them a more specialized service.
Calls answered at the Call Center | |
2014 | | |
2013 | |
BT Call Center | |
| 430,144 | | |
| 385,445 | |
MACRO Call Center | |
| 1,779,203 | | |
| 1,798,739 | |
Corporate Call Center Service | |
| 119,273 | | |
| 132,649 | |
Help Desk | |
| 93,712 | | |
| 81,133 | |
IVR Calls (Total) (**) | |
| 4,458,526 | | |
| 4,717,737 | |
(**) Interactive Voice Response
· Mobile
Banking Units: Macro Trucks
With our 4 trucks we travelled more than 10,000
km across our country and provided the automated teller machine and Internet connection service to our customers and visitors in
more than 12 cities across the Argentine territory.
With all these actions we succeeded in getting
much closer to our customers in each region with exclusive benefits. We were able to be present where they are, know and understand
their needs, offer them solutions, and help them in their projects.
Besides, together with these mobile units,
we continue strengthening our education proposal for the younger ones, the “Mini Banco Macro Branch” that uses playful
and interactive tools for children to learn by playing along with their parents. In this way, they are able to improve the understanding
of financial products, strengthen the knowledge of basic economy and financial concepts, and promote the creation of habits and
values related to responsible and sustainable consumption. This initiative is part of the program known as “Go for learning”
(“Animate a aprender”) focused on financial education for the different audiences.
· Other
actions aimed at improving customer service
- New Customer Service model with two
Commercial Managers: in order to be even closer to the needs of our customers we worked on a new customer service model, designating
two commercial managers to serve as “Greeters”, in order to be able to serve and/or refer the customer to the specialist
who shall better handle such customer´s concerns. The results obtained in the pilot tests carried out in the Branches of
Morón, Quilmes and the Bank’s Headquarters were satisfactory, therefore, we decided to implement this action in other
44 branches, achieving a significant improvement in customer service and in our customers’ wait time.
- Customer Identification: during
the first semester of 2014 we moved forward with a pilot test to incorporate the customer identification feature into our turn
terminal, allowing us to optimize the customer service model in our branches. Together with this module, we incorporated the feature
known as “Automatic Turn Expiration”, the purpose of which is to detect a turn with a long wait time and give it priority
for customer service. During 2015 we shall prepare a Plan add the service in new branches.
- New Report Generation: we
started redesigning our present service system turn reports, which shall allow us to improve the gathering of information and
to incorporate new analysis variables.
- CRM Project (Customer Integral
Information System) – Post-Sale Module: the Bank incorporated a new post-sale module in the Call Center and in the
branch network. As a result, we get the unification of processes that optimized customer service actions in both customer contact
channels, automatizing previous manual controls, reducing risk and shortening customer service waiting times, and allowing both
branch managers and Call Center operators to increase their productivity. In addition, we begun the analysis of our post-sale Stage
II, the scope of which includes the replacement of the application used by the Call Center. This shall allow the channel to perform
all its operations with only one application, thus reducing even more the customer service waiting times. We also started the design
of a new improvement in the customer complaint resolution process that consists in answering customers’ complaints and claims
of identical description automatically.
- ISO 9001:2008 Re-certification
audit: in August we carried out the external audit conducted by TUV Rheinland, with satisfactory results, and we got the
re-certification until September 2017.
- Increase in the number of
handicapped personnel: in line with our commitment to social inclusion, the Bank hired an operator with reduced mobility.
In this way the aggregate number of handicapped employees working at the Call Center is 6.
Presence at federal level
Grupo Macro works to be close to all Argentineans,
with the end goal of contributing to the development of the communities throughout the country, improving in this way the access
to the banking and financial system.
Districts with the presence of Banco Macro only |
Districts | |
2014 | | |
2013 | |
Salta y Jujuy | |
| 70 | | |
| 62 | |
Tucumán | |
| 26 | | |
| 25 | |
Córdoba | |
| 5 | | |
| 5 | |
Misiones | |
| 57 | | |
| 50 | |
Santa Fe | |
| 26 | | |
| 25 | |
Mendoza | |
| 2 | | |
| 0 | |
Total | |
| 186 | | |
| 168 | |
Accessibility
The Group seeks that all persons choosing it
are able to Access to an excellent service and a quality service. Blind customers or customers with any visual impairment, for
example, are offered the service of braille printed account statements. Additionally, the Bank has 429 ATMs (33% of the total fleet)
featuring the Voice Guide function for blind people. For the year 2015 we expect to implement this function in all ATMs supporting
voice technology, reaching 95% of the total ATM fleet.
Branch Accessibility | |
2014 | | |
2013 | |
Voice-enabled ATMs for blind people | |
| 429 | | |
| 200 | |
Branches with access ramps and special restrooms | |
| 129 | | |
| 105 | |
Branches with adapted restrooms for the handicapped | |
| 350 | | |
| 347 | |
Branches with special restrooms | |
| 135 | | |
| 129 | |
Complaint and quality management
We have the CRM (Customer Relationship Management)
tool to deal with the complaints along all their stages. This application allows us to work with a 360° view over our customers,
integrate information about products and claims, optimize the complaint management and administration circuit and reduce the time
of final resolution.
Furthermore, we work to reduce response times,
and in 2014 we enable the possibility for customer service channels to make direct reimbursements of low amounts at the time they
serve customer’s complaint, optimizing the response to customer complaints for reduced amounts. In turn, we eliminated certain
documentary requirements facilitating the processing of more than 1,000 monthly complaints.
Number of complaints filed by channel (*) | |
2014 | | |
2013 | |
Branch | |
| 70,951 | | |
| 68,383 | |
Call Center | |
| 103,458 | | |
| 99,552 | |
Internet | |
| 21,022 | | |
| 17,924 | |
Complaint Management & Quality Department | |
| 1,081 | | |
| 1,663 | |
Letters | |
| 338 | | |
| 758 | |
Corporations Back | |
| 270 | | |
| 245 | |
Person Responsible to the BCRA | |
| 362 | | |
| 172 | |
Total | |
| 197,482 | | |
| 188,697 | |
(*) The information shown in this table includes both GCR Macro
and BT
On the other hand, we developed the actions
aimed at improving the Bank’s complaint rates:
· We
incorporated improvements into the internal alert scheme for management delays.
· We
published a document as ´required reading´ for all branches on best complaint handling practices.
· We
designed explanatory inserts on Credit Card operation, to inform customers about some aspects regarding product operation
aspects that generate complaints when unknown.
Security of personas and information management
The Group features strong security tools for
its individual customers: personal identification password, user, coordinates card and positive identification for certain monetary
transactions.
In order to strengthen the security measures,
during 2014 we again implemented awareness campaigns oriented to customers operating online, informing about the latest fraud methods
existing in the Internet. Besides, the corporate web features a special section known as “security advice” that contains
all necessary information regarding prevention.
At the Branches, we implemented a communication
system between the security staff that Works inside the branch in order to strengthen the physical security of people visiting
the Bank. On the other hand, we carried out an analysis of the physical security technical verifications in 34% of the branches
along the nine country divisions.
Supplier Management
Grupo Macro is continuously working for the
integral development of the communities in which it is present. In this sense, it works to incorporate local vendors into the supply
chain, giving priority to regional companies to make remodeling at branches or buildings, and leading suppliers for the acquisition
of technology items.
In 2014 we have incorporated as suppliers new
Small- and Medium-Sized Companies (Pymes) and microenterprises for the acquisition of promotional items and gifts, as well as for
printing works: in 2014 25% of gift purchases were Pyme-oriented.
These social companies, cooperatives or small
ventures have work and production processes that respect the environment, promote local culture expressions and boost projects
that revitalize team work.
Some outstanding
examples include: Bodega Colomé, located in Molinos, Salta; and Asociación Civil Warmi Sayajsunqo, a venture in Jujuy
that groups women from La Puna who have recovered the first spinning and textile mill of Abrapampa.
Likewise,
we purchase FSC certified paper reams (originating from responsible sources) and for large printing Jobs, we work with printing
shops that use this kind of paper.
SUPPLIERS IN NUMBERS | |
2014 | | |
2013 | |
Number of suppliers (i) | |
| | | |
| 4,863 | | |
| 4,808 | |
Suppliers by Region: | |
| Total | | |
| % | | |
| % | |
Buenos Aires | |
| 1,994 | | |
| 41 | | |
| 40 | |
Large Argentine Northern Region | |
| 1,459 | | |
| 30 | | |
| 27 | |
Central Region | |
| 875 | | |
| 18 | | |
| 23 | |
Cuyo | |
| 292 | | |
| 6 | | |
| 4 | |
Patagonia | |
| 234 | | |
| 5 | | |
| 6 | |
(i) We have a total of 15,765 suppliers in the system and
31% of which remained active during 2014.
Top 10 CATEGORIES | |
NUMBER OF SUPPLIERS 2014 | |
Transportation | |
| 731 | |
Building repair and maintenance | |
| 628 | |
Professional services | |
| 613 | |
Advertising and publicity | |
| 566 | |
Security | |
| 108 | |
IT services | |
| 81 | |
Stationary and office supplies | |
| 75 | |
Medical services | |
| 72 | |
Cleaning services | |
| 60 | |
Machine and equipment maintenance | |
| 54 | |
From 2014 we implemented the Digital File,
saving paper and reducing the delivery of documents by internal mail. At present documents are scanned and emailed in real time.
Selection and evaluation
Through the Program “Know your supplier”,
in 2014 we visited 23 vendors from the cleaning, security and technology categories. This action allowed us to strengthen the relationship
with our suppliers and evaluate more accurately the potential thereof.
On the other hand, the Code of Conduct applicable
to suppliers allows us to disclose to our vendors the principles that rule our actions and in this sense we incorporated into the
employment contract social, human rights, safety and hygiene, environmental and ethical requirements. Approximately 42% of the
total active supplier base adhere to this Code of Conduct.
We perform bi-annual evaluations of the services
rendered or the products acquired in each sector or category. To such end, we take into account price weighting and compliance
in terms of quality and delivery deadlines or terms.
Corporate Image
Transparent and efficient communication
The Bank’s communication strategy gives
priority to the local support. We plan on a decentralized and federal basis, and we work with local communication media, small
radio stations and provincial programs from all around the country. Top management participates directly on the communication strategy
and sees that all messages reflect the corporate values and culture.
OUR COMMUNICATION IN NUMBERS | |
2014 | |
TV advertising seconds (air TV and cable) | |
| 1,484,993 | |
Number of TV channels (national and in the interior) | |
| 85 | |
Number of graphic media | |
| 104 | |
Number of radio seconds | |
| 2,653,645 | |
Number of radio stations | |
| 143 | |
Number of printed direct marketing pieces | |
| 1,082,411 | |
Number of mailings (*) | |
| 2,076 | |
(*) In Banco Macro and Banco del Tucumán
Events and sponsoring actions
· Sport
events
To accompany sports means to promote healthy
life and transmit positive values for all the communities. For this reason, we sponsor different teams and sport leagues both national
and local.
At Macro we are proud to support the Argentine
hockey teams, since we share the values that identify such teams and that lead them to such achievements: effort, team work, self-improvement,
fair play, loyalty, talent, courage, comradeship.
In 2014 we launched the institutional advertising
campaign “above all” aimed at highlighting the values that tie us to hockey, such as team work, solidarity and the
pride of being Argentinean.
Besides, in alliance with the Argentine Hockey
Association (Confederación Argentina de Hockey) we launched a campaign against gender violence, backed by the Argentine
Women Council (Consejo Nacional de las Mujeres). We rolled out this campaign at the 21st Edition of the women’s
Champions Trophy.
| o | Professional, amateur and promotional football |
We sponsor several football teams throughout
the country: Club Atlético Tigre, Club Quilmes, Crucero del Norte, Club Gimnasia y Esgrima de Jujuy, Club Independiente
de Rivadavia, Club Deportivo Maipú, Juventud Antoniana, Club Atlético Central Norte, Gimnasia y Tiro de Salta.
For the eighth consecutive year we sponsor
the football league in Salta. Our support to the regional league in the Province of Salta is the consequence of Banco Macro’s
commitment expressed and sustained for years to small teams, promoting team work, self-improvement and growth of all affiliated
clubs.
This year, we carried out a joint effort known
as “Hinchando Por un sueño” (“Pulling for a Dream”), which consists of different social organizations
being backed by a club, receiving tickets to be able to go to the matches and cheer for the team. Once the championship comes to
an end, the first three best teams and their relevant clubs will receive a cash prize.
Macro is the sponsor of Tucumán Rugby
Club. Although it was born in 1942 as a Rugby club, today it’s more than that. Tucumán Rugby Club’s premises
host the practice of many other sports such as hockey, tennis, paddle, football, squash and swimming.
Golf fans have the opportunity of participating
in our golf tournament carried out throughout the country. Some of the cities we visited with this tournament include: Mendoza,
Oberá, Tucumán, Olivos, Villa Allende, Salta, Río Cuarto and Córdoba.
Besides, Macro was the sponsor of the America’s
Golf Cup, an event that gathered some of the best golf players of the world, and that took place from October 21st to 26th 2014
at the Olivos Golf Club. Our customers were able to enjoy a comfortable VIP and watch a cup involving some of the most renowned
golf players in the world.
Once again we are present in Cristian Ledesma's
road rally (TC) team. We were present in each race, and invited our customers to have lunch with the racer and enjoy exclusive
experiences to live the entire rally experience.
In tennis we were the main sponsor of La Legión,
with the return of the best Argentine tennis players. We offered discounts and benefits tour customers, apart from special invitations
with preferential sits.
In 2013, for the fourth time, we sponsored
the Dakar Rally, a unique race of international level that went across the most remote places of the Republic of Argentina.
We were the official bank of the Dakar Rally
and we were present in the different stages of the race in Argentina, offering all our services through the branches nearest to
each point of race tour.
In boxing, we sponsored Charly Rodriguez in
each event and exhibition made. In June sponsored the Maidana vs Cuellar fight held in the City of Pilar, Province of Buenos Aires.
During the months of August and December we sponsored several events held in the city of Mercedes together with Walter Jacaré
Ramírez. In the city of Mendoza we accompanied the boxer Juan Carlos Reveco in his presentation held in his city of origin
Malargüe.
In December we sponsored the mega event Arena
Tour carried out in Buenos Aires at the Luna Park stadium.
At Banco Macro we believe running
generates positive habits for our health and for our life. Therefore, we decided to accompany the Argentina
Corre (Argentina Runs) program held in 15 locations around the country every year. Besides, Banco Macro sponsors some
of the leading local marathon races.
From October 2013 Banco Macro is the official
sponsor of the volleyball team Obras Sanitarias of the Province of San Juan. This team of renowned young players strongly supported
by the people of San Juan has given the best of it during the 2013/2014 season in the National Volleyball League, ranking in the
ninth position of the table.
·
Shows
We sponsored events and shows that allowed
us to bring some entertainment options to our customers, not only in large urban areas of our country but also in the most distant
places of Argentina. In 2014 we invited more than 20,000 customers to more than 380 shows of different artists and events such
as: Los Tekis, Fito Paez, Abel Pintos, Jorge Drexler, David Bisbal, Escape, Mireya, a tango musical… Y un día Nico
se fue (And One Day Nico Left), Primeras Damas del Musical (Divas of the Musical), Festival de Doma y Floklore de Jesús
Maria, Festival de Cosquín and Festival Nacional Peñas de Villa Maria.
·
Fairs and events
We were present in more than 300 fairs, exhibitions,
and events across the country. We take advantage of these events to spread the word about the benefits and products available to
all our current and potential customers, particularly to those in the PYME and agribusiness segment. Among these fairs, we can
highlight and mention our participation in: Expo Agro, Expo Láctea, Expo Tucumán, Expo Lules, Exposición Ganadera
Rio Gallegos, Expo Rural en Junín, Expo Jujuy, Expo Rio Cuarto, Fiesta del Inmigrante, Fiesta Nacional del Poncho, Fiesta
Nacional de los Estudiantes, Fiesta Nacional del Maní, Fiesta Nacional del Tabaco, Fiesta Bahía Blanca, Fiesta Nacional
del Salame, Fiesta Nacional de la Vendimia, Fiesta Nacional de la Chicha, Iguazú en Concierto, Concurso de la Empanada Salteña,
Festival Nacional de las Alturas, Fiesta del Queso, Fiesta de la Empanada Tucumana, Fiesta de la Tradición in San Antonio
de Areco, 62nd Annual Edition of the Convention of Cámara Argentina de la Construcción, TEDx Rosario and
the 2nd Social Responsibility International Congress.
Banco Macro’s Birthday
On October 24th, in Salta, we celebrated Banco
Macro’s birthday with a show that gathered several renowned artists such as Tekis, Princesita Karina and Chaqeño Palavecino.
This celebration represented the work of 8,700 Argentine citizens that are part of Banco Macro and that allow Banco Macro to be
the largest national private capital bank and the bank closest to people.
Support to social impact events
In addition to all social impact actions carried
out by Fundación Banco Macro, the Bank’s management participated in 2014 in more than 15 dinners for the benefit of
several Social Organizations and in different solidary events, such as AUDELA – Pumas vs Leonas challenge, Fundación
por Pilar –benefit golf cup- and Hospice Marathon, we sponsored the marathon organized by the civil association Hospice San
Camilo.
Awards and honors received. Rankings.
During 2014 we were recognized with the following awards:
·
Sol Andino 2014 Award: Best Bank of the Argentine Northwest Region
Cable Express recognizes with the Sol Andino award the most
important companies of the Northern region of our country. The purpose of this award is to recognize those institutions that
help disseminate our culture, while leading the business and industrial progress of the region. We were awarded this
recognition on October 2013 for the eleventh consecutive year.
·
Banco Macro, “2013 Best Neutral ATM Bank ”
Red Banelco awarded Banco Macro as the “2013 Best Neutral
ATM Bank”.
During 2013 the Group made a strong investment
in technology by increasing its ATM fleet, representing 35% of Red Banelco’s growth. We were granted this award on April
2014.
Contribution to local development
Through Fundación Banco Macro, we accompany
the social, cultural, and economic growth of the communities in which we operate, and we promote sustainable projects that foster
work culture and arouse the spirit of shared social responsibility.
Led by the Corporate Sustainability Area of
the Bank, which belongs to the Institutional Relations Department, we have regional coordinators who analyze the proposals from
civil society organizations in each region in order to generate a greater impact on each province.
In 2014, more than 70 organizations received
the Bank’s economic support in order to carry out joint projects, and furthermore, the 30 best initiatives proposed by the
Bank’s employees received an award, within the context of the “Solidarity Projects” initiative.
Assessment of our social actions
We continued to assess our actions through
a tool developed by Fundación Banco Macro, based on the guidelines of the LBG (London Benchmarking Group)
model. This tool allows us to evaluate the impact of those actions and manage the programs with order and efficiency. Thus, we
assess the specific contribution, and the installed capacity of each project.
SOCIAL INVESTMENT IN FIGURES | |
2014 | | |
2013 | |
Investment in Sustainability (in pesos) (1) | |
| 21,776,889 | | |
| 11,419,229 | |
By social work axis | |
| | | |
| | |
Sustainable Work Program | |
| 1,731,538 | | |
| 1,894,594 | |
Financial Inclusion and Education Program | |
| 1,117,978 | | |
| | |
Nutrition | |
| 949,629 | | |
| 1,235,370 | |
Integration | |
| 301,200 | | |
| 331,250 | |
Social Assistance | |
| 1,155,350 | | |
| 1,783,077 | |
Volunteering | |
| 1,095,000 | | |
| 317,474 | |
Alumbra Microloans | |
| 3,769,192 | | |
| | |
EcoBicis Program | |
| 6,734,812 | | |
| | |
Miscellaneous donations (2) | |
| 3,456,905 | | |
| 3,695,266 | (3) |
Other indicators | |
| | | |
| | |
Volunteer employees | |
| 4,669 | | |
| 3,213 | |
Number of programs | |
| 6 | | |
| 6 | |
Number of provinces | |
| 11 | | |
| 11 | |
Number of beneficiaries (4) | |
| 202,962 | | |
| 195,210 | |
Number of alliances with organizations | |
| 79 | | |
| 95 | |
(1) Indicator
consisting of social investment, plus miscellaneous donations and Corporate Sustainability management operating expenses. Investment
in programs with the community is part of the Sustainability area budget.
(2) We
began to systematize this indicator in 2012, taking into account Banco Macro’s donations to social events and projects exceeding
the activities of Fundación Banco Macro.
(3) Modified
data of the Sustainability Report 2013. The total amount is the sum of deductible and non-deductible donations of Banco Macro during
2013.
(4) It
includes direct, indirect beneficiaries, and elderly adults trained in the financial education program (122,899 retirees).
Program Axis | |
Direct beneficiaries | | |
Indirect beneficiaries | |
Financial Education | |
| 1,306 | | |
| 3,906 | |
Sustainable Work | |
| 1,264 | | |
| 1,764 | |
Integration | |
| 1,396 | | |
| 4,516 | |
Education | |
| 7,668 | | |
| 28,673 | |
Social Medicine | |
| 8,301 | | |
| 4,052 | |
Nutrition | |
| 2,993 | | |
| 6,665 | |
TOTALS | |
| 22,928 | | |
| 49,576 | |
2014 |
Number of beneficiaries – volunteering days | |
| 5,851 | |
Number of beneficiaries of solidarity collections | |
| 1,708 | |
Retirees participating in the Financial Education Program “Animate a Aprender” (Give yourself the chance to learn!) | |
| 122,899 | |
Number of beneficiaries (direct and indirect) of Integration, Social Medicine, Nutrition, Sustainable Work, and Education Programs | |
| 72,504 | |
Total number of beneficiaries | |
| 202,962 | |
Program “Reaching the Future”
A major part of our efforts is focused on alliances
that promote work culture and productive undertakings.
- “Go-Ahead Competition” Program:
Fundación Banco Macro, in alliance with Fundación Impulsar and several universities throughout the country, gives
support to young entrepreneurs by means of training, guidance, economic support and business advice.
In 2014, the second “Go-Ahead Competition”
finished. It took place in Salta, Tucumán, Jujuy, Santa Fe, Misiones, Córdoba, Mendoza, Neuquén and Buenos
Aires. Thus, we supported more than 180 micro-businesses interested in becoming a “pymes” [small- and medium-sized
company]. On this occasion, we invested more than ARS 1,600,000, by providing economic support in the amount of ARS 450,000 for
the best three projects in each province, and mentorships for the best ten projects of each town.
- “Potenciar Comunidades Banco Macro”12
Program: We fostered community development through the training of local organizations. Thus, after the strategic and associated
work of different “actors” of each town, we funded a community preserves undertaking in Colonia Santa Rosa, Salta,
and we funded a municipal carpentry undertaking in Urundel. In San Francisco, Jujuy, we trained students and teachers in the handling
of new technologies, and we equipped the only high school in that town, with the aim of supporting secondary tourism-based education.
In addition, we promoted the artisans’ fair project conceived by the aboriginal community. In the same province, but in
Valle Grande, another municipal carpentry project was supported.
- Pichanal, Salta:
In alliance with Frigorífico Bermejo, and in order to evaluate social investment possibilities, we started a diagnostic
process for that location, so that we can have a description of the territory and generate an exhaustive actors map.
Micro-loan Program “ALUMBRA”
This financial inclusion
program created by Fundación Banco Macro is targeted at “non-bankarized” micro-entrepreneurs who are
granted loans for production purposes. Financial aid is supplemented by advice (legal, accounting, and on commercial management)
so that they can improve their growth opportunities. We have been operating since the middle of 2014, in Salta, with 9 university
advisers who were trained in the best and most modern microfinance and service to this sector practices. The 3 new opened branches
had already granted, by the end of the year, the first ARS 726,000, and we intend to get to more than 1,000 customers in 2015,
thus becoming the most significant program in the region with this type of integral support to the sector.
More financial education initiatives
In different locations in the country, we worked
together with Junior Achievement, to carry out the educational programs “La Compañía” (The Company),
“Socios por un día” (Partners for One Day), and “Economía Personal” (Personal Economy), with
the aim of promoting an enterprising attitude in young students. The Bank’s employees participated in these initiatives as
teachers. Besides, nine “Mini Bank Branches” were built so that every region in the country could bring them to their
most important events and locations.
Alliances and association
·
United Nations Global Compact
We adhered in the year 2009 to the ten principles
of the United Nations Global Compact, concerning labor practices, human rights, environment, and anti-corruption. We annually submit
our Communication on Progress (COP) reporting the advances made in the application of the principles of the Global Compact to our
business activities.
In 2014, we supported once more the U.N. Global
Compact Network Argentina by jointly organizing the workshop “Alineando iniciativas internacionales de Responsabilidad
Social: Pacto Global + ISO 26000 + GRI G4” (“Aligning International Social Responsibility Initiatives: Global Compact
+ ISO 26000 + GRI G4”), in San Miguel de Tucumán. The purpose of that was to generate a greater and better understanding
of the different global initiatives that promote corporate sustainability, and facilitate the integration of these initiatives
into the organization management. Furthermore, through a practical integration case of the Global Compact, ISO, and GRI, we promoted
reflection on the contact points between initiatives, complementarities, and the synergy that can be generated in the use of the
3 tools.
12 Banco Macro’s program
to foster community development.
·
GDFE
Since 2008, the Bank has been a member of Grupo
de Fundaciones y Empresas (GDFE) [Group of Foundations and Companies], an entity that enables us to share and improve ourselves
from the private social investment experiences of different companies which form part of the group.
·
IARSE
Since 2012, the Bank has been a Gold member
of Instituto Argentino de Responsabilidad Social Empresaria (IARSE) [Argentine Corporate Social Responsibility Institute]. This
Institute provides information and training and updating on CSR strategic issues.
·
Sustainable North
The Bank is a founding member of this initiative
conceived in the province of Salta, and participates actively along with other companies that foster sustainability in the north
of the country.
·
CONAETI
The Bank is a member of, and supports the different
initiatives of the network of companies against child labor. All its providers, pursuant to the ethics code they adhere to, commit
themselves to preventing and eradicating child labor. Within the framework of this commitment, the Bank also develops different
public-private initiatives, such as “Jardines de Cosecha” [Harvest Gardens], along with the Tobacco Chamber of Salta,
the civil association “Conciencia”, and other member companies of Salta and Jujuy.
Environmental Management
Direct environmental impact: Improved management
of resources
In 2014, we replaced a total of 337 LCD monitors,
and progress was made as regards the replacement of clone equipment by brand name equipment, we installed 173 new pieces of equipment,
and replaced 1,411 pieces of equipment by new ones. In addition, the consumption of reams of paper, as well as the number of prints
diminished.
Management of residues
In 2014, 52 tons of technological equipment
were retired, and the material was sent to the company 3Rambiental and Fundación Equidad. As a result of this work, more
than 100 pieces of equipment were recycled and reconditioned, which were given to institutions that submitted educational projects,
and which we evaluated together with Fundación Equidad. Thus, more than 1,300 children and young people from six provinces
had a greater number of PCs in their IT laboratories, and different educational aspects could be dealt with.
Consumption of energy, and CO2 emissions | |
2014 | | |
2013 | |
Consumption of electricity (in kWh) | |
| 12,743,340 | | |
| 13,004,706 | |
CO2 emissions (scope 2) (1) | |
| 8,920.33 | | |
| 9,103.29 | |
Scope 2: Indirect emissions from consumption
of electricity purchased from the power supply company (external source). Emissions calculated according to the “World Resources
Institute (2009), GHG Protocol tool for stationary combustion. Version 4.1”.
Consumption of paper | |
2014 | | |
2013 | |
Consumption of reams | |
| 156,637 | | |
| 190,715 | |
Number of prints | |
| 121,462,806 | | |
| 124,799,495 | |
Management of residues | |
2014 | | |
2013 | |
Recycled paper (kg) (1) | |
| 52,734 | | |
| 54,822 | |
Recycled plastic (kg) (2) | |
| 1,608 | | |
| 1,906 | |
Management of electronic residues | |
| | | |
| | |
Number of pieces of furniture donated | |
| 944 | | |
| 907 | |
Computers donated or recycled (3) | |
| 155 | | |
| 189 | |
Benefited institutions | |
| 99 | | |
| 114 | |
(1) 29,719
kg are from Buenos Aires (data of November 2014), 4.254 kg from Salta, 9.470 kg from Santa Fe, 7.164 kg from Córdoba, and
2.127 kg from Tucumán.
(2) 616
kg are from Buenos Aires (data of November 2014), 133 kg from Salta, 580 kg from Santa Fe, 135 kg from Córdoba, and 144
kg from Tucumán.
(3) Complete
PCs donated to educational institutions and communities that submitted work proposals in connection with ICT.
Scope of the report
Selection of key indicators: Materiality
Analysis
With the aim of including in this report significant
data for the Bank and its interest groups, we developed a materiality analysis seeking to identify the key issues of the business
related to the triple performance: economic, social, and environmental.
For that purpose, during 2013 and 2014 we worked
on the following stages:
Identification: We drew up a list of
12 significant issues related to our Bank and sustainable management, based on the bank’s business strategy, sustainability
policy, and five pillars endorsed by the Bank’s Board of Directors. We also took into account international studies on sustainability
management trends in the financial industry, the ten principles of the United Nations Global Compact, the Social Responsibility
standard ISO 26000, the GRI document “Sustainability Topics for Sectors: What do stakeholders want to know?”, opinions
and expectations as surveyed from the interest groups, and other external sources such as local regulations, and regulations applicable
to the sector.
Fundamental aspects: After the making
of the list, and using as a basic tool for this stage the final version of the AA1000SES standard developed by Accountability,
99 persons who represented the press and civil society organizations, and 32 employees of the Bank, ranking from managers to directors,
analyzed the 12 issues according to their significance in the Bank’s management, focusing on the key interests of the internal
and external publics, and this resulted in a Materiality Matrix in which each issue was positioned in a specific area, which allowed
us to arrange them by importance for the Bank and our interest groups.
We linked these issues to our five strategic
sustainability pillars, with the aim of arranging them within the Report structure and, in turn, to the aspects of the G4 Guidelines
to be reported in the GRI Table of Contents, and as from this year to 6 (six) categories of capital in the framework made by the
International Integrated Report Council (IIRC).
Validation: The matrix was approved
by the Bank’s directors and first line managers, and along with an analysis of the issues which are characteristic of the
Bank, and which differentiates the Bank from others in the local financial market, and those activities which were a novelty during
that year, it represents the content selected to be published in this Banco Macro Report 2014.
Revision: This report is submitted to
the Board of Directors, and contains key indicators that are internally audited. Also, the report is examined by the Auditing Committee.
In turn, we invite all readers to let us know their comments as feedback for our rendering of accounts and to continue improving
every year13.
Application of the Global Reporting Initiative
(GRI) G4 Guidelines
The Report follows GRI G4 Guidelines, including
all the aspects which are material to the Bank. Furthermore, we include additional information in this report which does not correspond
to any GRI indicator, but which is significant for the interest groups and to explain the annual performance of the entity.
In the following Relationship Table, we connect
the material issues selected in the Analysis with Banco Macro’s five sustainability pillars, and the GRI aspects defined
for the construction of the Table of Contents14.
13 For any inquiry or suggestion, please contact our
Sustainability Department by writing to relacionesinstitucionales@macro.com.ar.
14 The GRI Indicators table of contents is contained
in Schedule III of this report.
|
|
Relationship Table |
Strategic
Sustainability
Pillars |
|
Key Sustainability Issues |
|
Directly related
GRI Aspects15 |
|
Scope |
Financial Inclusion and Education |
|
· Products
and services for low-income people.
· Work
together with the community to foster local development, especially in communities where only Banco Macro is present. |
|
Financial supplement – Product portfolio
SO Local communities – EC Indirect economic impact. |
|
Internal and external |
|
|
|
|
|
|
|
Direct and Indirect Environmental Impact
|
|
· Clauses
in application forms not to finance companies that cause environmental damages.
· Efficient
management of resources.
· Efficient
management of residues, such as technological residues. |
|
EN Materials
EN Energy
EN Products and services
EN Emissions
EN Transportation
EN Environmental evaluation of providers
EN Environmental impact complaints mechanisms
Financial supplement – Product portfolio. |
|
Internal and external |
|
|
|
|
|
|
|
Responsibility for the wellbeing and inclusion of people |
|
· Training
for employees.
· Corporate
volunteering. |
|
LA Employment
LA Company/workers relations
LA Occupational health and safety
LA Training and education
LA Diversity and equal opportunities
LA Equal remuneration for women and men
LA Labor practice complaints mechanisms
HR No discrimination
HR Freedom of association and collective bargaining agreements |
|
Internal |
|
|
|
|
|
|
|
Development of “Pymes” and undertakings
|
|
· “Inclusive
purchases”16.
· Micro-finances. |
|
EC Hiring practices
EC Indirect economic impact. |
|
External |
|
|
|
|
|
|
|
Transparency in all our actions |
|
· Assessment
of customers’ satisfaction level.
· Alliances
with customers.
· Protection
of customers’ confidential information. |
|
SO Struggle against corruption
PR Customer’s privacy
PR Labeling of products and services
PR Customers’ health and safety
EC Presence in the market
EC Economic performance. |
|
Internal and external |
15 These identified aspects are
shown in the GRI Table of Contents along with the following GRI aspects related to the 10 principles of the United Nations Global
Compact: HR Child Exploitation, and HR Forced or compulsory work. 15 Specification of abbreviations included in this column: SO
– Society, EN – Environment; LA – Labor; HR – Human Rights; EC – Economic; PR – Product Responsibility.
16 Purchases from providers who are excluded from the
competitive market. It’s a social responsibility practice which refers to the economic and social inclusion of vulnerable
groups that engage in a productive activity through their incorporation into the supply chain.
GRI Table – Relationship between Banco Macro’s Sustainability
Pillars and the IIRC Model categories of capital |
|
Transparency
in all our
actions |
|
Responsibility
for the
wellbeing and
inclusion of
people |
|
Financial
Inclusion and
Education |
|
Development of
“PyMEs” and
Undertakings |
|
Direct and
Indirect
Environmental
Impact |
Financial |
X |
|
|
|
|
|
|
|
|
Industrial |
X |
|
|
|
X |
|
X |
|
|
Intellectual |
X |
|
|
|
X |
|
X |
|
|
Human |
|
|
X |
|
|
|
|
|
|
Social and reputational |
x |
|
X |
|
X |
|
|
|
|
Natural |
|
|
|
|
|
|
|
|
X |
Communication on 2014 Progress
Through this document, “Establishing
the Connection”, we submit our Communication on 2014 Progress, whereby we inform about the attainment of the ten principles
in the areas of human rights, labor rights, environment, and anti-corruption of the United Nations Global Compact in connection
with the GRI indicators.
Grupo Macro’s Results
Financial Economic Situation
Within a framework of increased regulations,
assets performed at an inconsistent pace. Loans targeted at the private sector, through consumer, and working capital lines, remained
at 18% growth rates, in line with the performance of the rest of the financial system. Instead, liquidity management lines expanded
at the beginning of the year, and closed at negative values.
Based on the composition of assets, the holding
of BCRA letters of credit became relatively stronger compared to other higher-risk assets.
From the point of view of liabilities, the
average growth of deposits remained around 26%, with time deposits standing out, as they reached amounts above 34%.
The infrastructure for the provision of financial
services continued to improve during the year, with the opening of new branches in several cities and towns in the provinces: Cerrillos,
Plaza Empresas (Salta), Villaguay, San Salvador, Malargüe, and Lomas del Tafí. By December, the number of branches
totaled 434. Additionally, the number of ATMs and self-service terminals was increased by 140 new units in operation.
Through its representation in 22 jurisdictions,
and its 434 branches, the group constitutes the private entity with the strongest presence in the country. Simultaneously, its
representation as the financial agent of four provinces adds stability and a potential market to its business structure.
The following table shows the location of branches
by region within the entire Argentine financial system, revealing a strong presence in the productive areas of the provinces:
| |
| | |
Branches | | |
| |
| |
Branches | | |
Financial | | |
| |
Regions | |
Grupo Macro | | |
System | | |
Share | |
NOA (Argentine Northwest) | |
| 84 | | |
| 271 | | |
| 31 | % |
Middle | |
| 174 | | |
| 959 | | |
| 18 | % |
NEA (Argentine Northeast) | |
| 47 | | |
| 333 | | |
| 14 | % |
Patagonia | |
| 20 | | |
| 276 | | |
| 7 | % |
Cuyo | |
| 17 | | |
| 256 | | |
| 7 | % |
Province of Buenos Aires | |
| 60 | | |
| 1,350 | | |
| 4 | % |
City of Buenos Aires | |
| | | |
| | | |
| | |
| |
| 32 | | |
| 767 | | |
| 4 | % |
TOTAL | |
| 434 | | |
| 4,212 | | |
| 10 | % |
Solvency
Banco Macro stands out among its competitors
because of the strength of its capital. Indicators are conservative, and have progresses adequately throughout the fiscal year.
It ranks second among private banks with the largest equity.
Paid-up capital in excess of the established
standards amounts to more than twice the required capital (105%).
MINIMUM CAPITALS
| |
Iin thousand | |
| |
Dec-14 | |
Minimum Capitals requirement | |
| 5,657,902 | |
By credit risk | |
| 3,991,731 | |
By market risk | |
| 388,136 | |
By operating risk | |
| 1,278,035 | |
Regulatory capital | |
| 11,580,668 | |
of which, subordinate debt | |
| 366,816 | |
Margin (excess Re. Capital vs. Requirement) | |
| 5,922,766 | |
| |
| 105 | % |
In the current fiscal year, the Bank managed
to maintain the market share levels. This policy made possible that the Group’s leverage – Liabilities/Shareholders’
Equity – remained around 5.5 times below the average of the financial system –6.9 times–, and below that of the
main competitors.
Macro’s Shareholders Equity rose by 33%
in nominal terms, it went from ARS 8,627 million to ARS 11,492 million. This expansion is accounted for by the profits earned in
the fiscal year.
Deposits
In 2014 the increase in deposits was 26% annually.
Demand deposits of the private sector markedly rose by 34%, quite above time deposits.
By the end of the fiscal year, the BCRA, in
order to encourage saving, put into effect as from October, a directive that establishes a limit lower than the interest rates
for time deposits made by individuals in amounts not exceeding ARS 350 thousand. This incentive, in the short term, marginally
improved the system deposit-taking volumes as a whole around the end of the year, which was accompanied by an increase in the coverage
limit of deposit guarantees.
In this context, Grupo Macro remains among
the three private entities with the largest volume of deposits, and a market share close to 6% of the Financial System in its entirety.
The following detail shows the evolution of
components:
Deposits In
million ARS | |
12/31/2012 | | |
12/31/2013 | | |
12/31/2014 | |
Checking accounts | |
| 6,717 | | |
| 8,603 | | |
| 11,896 | |
Savings accounts | |
| 6,467 | | |
| 8,41 | | |
| 11,014 | |
Time deposits | |
| 13,596 | | |
| 18,417 | | |
| 21,511 | |
Others | |
| 1,066 | | |
| 1,360 | | |
| 1,687 | |
Total Deposits–Private Sector N.F. | |
| 27,846 | | |
| 36,820 | | |
| 46,108 | |
Total Deposits - Public Sector | |
| 8,318 | | |
| 6,580 | | |
| 8,570 | |
Total Deposits – Financial System | |
| 24 | | |
| 27 | | |
| 39 | |
Total Deposits | |
| 36,189 | | |
| 43,427 | | |
| 54,717 | |
Loans
By the end of the year, loans to the private
sector grew by around 13%, i.e., reaching ARS 44,497 million. Although a slowdown is observed in the expansion pace compared to
the previous years, this slowdown takes place within a strong growth context.
Macro maintained its leadership in personal
loans, totaling 1.1 million loans, for an amount of ARS 16,121 million, and a 2.1% portfolio irregularity. Share in the market
of this product attained 14%, two percent points above the closest competitor. On the other hand, the product Credit Cards got,
again, extraordinary growth levels, which in this case reached a 34% growth compared to the balances of the previous years, totaling
1.5 million credit card holders.
The following table shows the composition of
LOANS, and the evolution of this item in the last three years:
Loans In
million ARS | |
12/31/2012 | | |
12/31/2013 | | |
12/31/2014 | |
Advances | |
| 4,281 | | |
| 4,450 | | |
| 3,386 | |
Notes | |
| 3,651 | | |
| 4,321 | | |
| 4,627 | |
Secured by mortgage | |
| 1,508 | | |
| 2,309 | | |
| 2,466 | |
Secured by pledge | |
| 929 | | |
| 1,429 | | |
| 1,857 | |
Personal | |
| 10,827 | | |
| 13,874 | | |
| 16,121 | |
Credit Cards | |
| 4,725 | | |
| 6,841 | | |
| 9,189 | |
Others | |
| 5,283 | | |
| 5,799 | | |
| 6,462 | |
Total Loans | |
| 31,204 | | |
| 39,024 | | |
| 44,108 | |
Leasing | |
| 328 | | |
| 391 | | |
| 389 | |
Total Financing | |
| 31,532 | | |
| 39,415 | | |
| 44,497 | |
During this fiscal year, we continued with
the policy of maintenance of high levels of irregular portfolio hedging, through the setting up of provisions in addition to those
required by the BCRA. The hedge indicator remained around 135%, slightly below the financial system average.
Delinquency levels remained at historically
low values, with a bad debt ratio of 1.9%.
Liquidity
The Group’s liquidity reaches ARS 22,198
million at the end of the fiscal year, showing a 53% rise compared to the previous year. In terms of deposits, the indicator stands
at 40.6%, quite above that of the year 2013. In this period the position taken in letters of credit issued by the BCRA increased.
The following table shows us the consolidated
balances at the closing of each Fiscal Year:
Liquidity
In million ARS | |
12/31/2012 | | |
12/31/2013 | | |
12/31/2014 | |
Cash and Banks | |
| 10,047 | | |
| 12,861 | | |
| 15,434 | |
LEBAC / NOBAC | |
| 613 | | |
| 49 | | |
| 5,422 | |
Government securities repurchase agreements | |
| 146 | | |
| 679 | | |
| 425 | |
Others | |
| 684 | | |
| 890 | | |
| 916 | |
Total Liquid Assets | |
| 11,490 | | |
| 14,478 | | |
| 22,198 | |
Hedge on Deposits | |
| 31.7 | % | |
| 33.3 | % | |
| 40.6 | % |
Results
The results of this fiscal year show a strong
growth in the first month of the year, as a consequence of the exchange rate depreciation driven by the authorities of the governing
entity, thus generating in the Argentine financial system a revaluation of assets expressed in foreign currency.
In the specific case of Grupo Macro, the fiscal
year ends with a profit of ARS 3,480 million, 42% up from ARS 2,444 million in the previous fiscal year.
Financial income amounted to ARS 14,683 million,
thus growing by 51% compared to ARS 9,754 million in 2013. Seventy eight per cent (78%) of such amount was provided by interest
from loans, which rose in the fiscal year by 39%. Secondly, the position taken in securities and, mainly, the letters of credit
issued by the BCRA, generated additional income of around ARS 1,974 million. Combination of both instruments enabled the entity
to improve the financial margin by around 41%.
Less significant, but even so of certain importance,
was the income from gold and foreign currency quotation difference, as well as controlled levels of bad debt charges, which yielded
values of 0.9% on net assets.
Administration expenses rose at a pace similar
to that of net services, maintaining adequate efficiency indicators, quite above the system average.
Such profitability represented a Return on
Equity of 33.4%, and a Return on Assets of 5.1%, being ranked among the first positions in the Argentine financial system. These
results show stability and continuity in the generation of income, productivity and efficiency in the use of resources over the
years.
Profit or Loss | |
| | |
| | |
| |
In million ARS | |
31/12/2013 | | |
31/12/2014 | | |
Variation | |
Financial Income | |
| 9,754 | | |
| 14,683 | | |
| 51 | % |
Interest from loans | |
| 8,214 | | |
| 11,443 | | |
| 39 | % |
Government and Corporate Securities Gain or | |
| 409 | | |
| 1,974 | | |
| 383 | % |
Adjustments for CER & CVS + Miscellaneous | |
| 1,131 | | |
| 1,266 | | |
| 12 | % |
Financial Expense | |
| 4,022 | | |
| 6,583 | | |
| 64 | % |
Gross intermediation spread | |
| 5,732 | | |
| 8,100 | | |
| 41 | % |
Bad debt | |
| 540 | | |
| 665 | | |
| 23 | % |
Net Income for | |
| 2,509 | | |
| 3,440 | | |
| 37 | % |
Administration Expenses | |
| 4,015 | | |
| 5,499 | | |
| 37 | % |
Net financial intermediation gain | |
| 3,685 | | |
| 5,376 | | |
| 46 | % |
Various profits and losses, & third-party | |
| 91 | | |
| 65 | | |
| - | |
Net profit before income | |
| 3,776 | | |
| 5,442 | | |
| 44 | % |
Income | |
| 1,333 | | |
| 1,962 | | |
| 47 | % |
Profit of the Fiscal Year | |
| 2,444 | | |
| 3,480 | | |
| 42 | % |
CER: Reference Stabilization Coefficient –
CVS: Coefficient of Variation in Salaries
Main Indicators of Grupo Macro
The following table shows the evolution of
some chosen indicators of Grupo Macro.
| |
Unit | |
2012 | | |
2013 | | |
2014 | |
Assets | |
million ARS | |
| 48,379 | | |
| 59,295 | | |
| 74,996 | |
Loans to the Private Sector | |
million ARS | |
| 31,532 | | |
| 39,415 | | |
| 44,497 | |
Liabilities | |
million ARS | |
| 42,180 | | |
| 50,668 | | |
| 63,504 | |
Deposits | |
million ARS | |
| 36.189 | | |
| 43,427 | | |
| 54,717 | |
Shareholders’ Equity | |
million ARS | |
| 6,199 | | |
| 8,627 | | |
| 11,492 | |
Profitability | |
million ARS | |
| 1,494 | | |
| 2,444 | | |
| 3,480 | |
ROA – Return on assets (average) | |
% | |
| 3.3 | % | |
| 4.6 | % | |
| 5.1 | % |
ROE – Return on equity (average) | |
% | |
| 27.1 | % | |
| 33.3 | % | |
| 33.4 | % |
Hedging – Provisions / Irregular-Portfolio | |
% | |
| 155 | % | |
| 149 | % | |
| 135 | % |
Irregularity – Irregular Portfolio/Portfolio - | |
% | |
| 1.8 | % | |
| 1.7 | % | |
| 1.9 | % |
Minimum Capital Surplus | |
% | |
| 49 | % | |
| 97 | % | |
| 105 | % |
Leverage – Liabilities/Shareholders’ Equity | |
Times | |
| 6.8 | | |
| 5.9 | | |
| 5.5 | |
Distribution of Dividends
The distribution of dividends in financial
institutions is subject to the provisions of the Central Bank of the Republic of Argentina, which are contained in Communiqué
“A” 5273, and supplementary statements (Restated Text, Circular CONAU – Section 9 – Distribution of profits).
Such distribution requires previous authorization by the Superintendencia de Entidades Financieras y Cambiarias (Superintendency
of Financial and Exchange Institutions),
Through Communiqué “A” 5694,
it was established that the financial institutions classified as of local systemic importance by the Central Bank of the Republic
of Argentina, among which is Banco Macro S.A., must comply with an additional capital requirement equivalent to 1% of the risk-weighted
assets (RWA). This additional capital requirement must be met in accordance with an annual schedule as from the year 2016.
Notwithstanding the aforesaid schedule, this
additional capital requirement will be computed in its entirety as from 2015, so that the amount which financial institutions may
allocate to distribution of dividends be determined. Moreover, the requirement concerning the possible application of a 75% additional
margin on the aforesaid requirement will continue to apply.
The Board of Directors will propose to the
Meeting of Shareholders the distribution, as dividend, in cash, the sum of ARS 1.02 per share, which would yield a total amount
to be distributed of 596,254,288.56 (102 % of the Bank’s capital stock of ARS 584,563,028, after the capital reduction that
took place by operation of law during the fiscal year closed on December 31, 2014).
Considering that the distribution is subject
to the prior authorization by the Central Bank of the Republic of Argentina, such institution’s approval will be requested.
Remuneration of Directors
The Bank has not changed its policy regarding
the remuneration of Directors. All the members of the Board of Directors perform technical-administrative duties in the company.
The Meeting of Shareholders evaluates every
year the Board’s conduct of business and performance, and thus determines the remuneration of directors.
The remuneration of Senior Managers consists
of a fixed component (salary) and a variable sum consistent with the mission and values of the organization.
Acknowledgments
The Board of Directors thanks our customers, correspondents, providers
and colleague entities, the shareholders, and the authorities and officers of the Banco Central de la República Argentina
(Central Bank of the Republic of Argentina), Comisión Nacional de Valores (Argentine Securities Commission) and Bolsa de
Comercio de Buenos Aires (Stock Exchange of the City of Buenos Aires) for the support we received.
We thank very specially the staff of the Bank for the high degree
of loyalty, cooperation and professionalism with which they performed their duties.
Buenos Aires, March 10, 2015.
The Board of Directors
Exhibit I – Sustainability and Reputational Goals
Sustainability
Strategic Pillars |
|
2014 Goals |
|
2014 Compliance |
Transparency in all our actions |
|
Generate inclusion of the most vulnerable sectors in the use of new technologies and customer service channels, by implementing new commercial campaigns for these segments. |
|
We simplified the information on how to operate in automated and virtual service channels, developed stylistic and discursive guidelines for the retired segment and improved signposting inside branches to allow visitors a more clear, understandable and diligent operation. |
|
Continue with our branch network expansion plan . |
|
We installed new ATMs and Self-service Terminals to be closer to customers. |
|
Work to turn more efficient the SOX certification process, suggesting more controls at the entity level and redesigning self-testing. |
|
We improved internal controls at the entity’s level and the self-testing processes. |
Responsibility for people’s well-being and inclusion |
|
Carry out a program of lectures on healthy life habits. |
|
We organized a Lecture Program on healthy lives, turning it into a more complete project under the framework of a “2015 Healthy Work Environment Program”. |
|
Implement Flex-time system for the rest of the Central Areas. |
|
We implemented Flex-time system on 100% of central areas. |
|
Develop an e-learning course on human rights. |
|
We worked on redefining the contents, scope and depth of this issue at the organizational level. |
|
Evaluate new positions to integrate handicapped or disabled people. |
|
We evaluated new positions allowing the integration of handicapped or disabled people and defined the inclusion in positions within the Customer Service and Administrative Departments. |
Financial Education and Inclusion |
|
Start a project related to the granting of microloans in some province of the Argentine northern region. |
|
We launched the program known as “Alumbra Microloans” in Salta and we granted 78 loans. |
|
Make a financial education web site for the entire community. |
|
We started designing a Financial Education Web site. |
Pymes and venture development. |
|
Complete a larger number of visits to suppliers and vendors in order to optimize the relationship and verify by visual observation the infrastructure and working conditions generally. |
|
We visited 23 vendors under the program “Know your Supplier”, achieving a larger number of visits as compared to the previous year. |
|
|
|
|
Purchase 20% of the gifts from ventures or organizations. |
|
We were able to purchase 25% of the gifts from Pymes. |
|
Keep on promoting local development projects and productive ventures in the communities in which we operate. |
|
We maintained the “Macro y Potenciar Comunidades” program in Santa Rosa and Urundel, Salta; and in San Francisco, Jujuy. |
Direct and indirect environmental impact
|
|
Implement the replacement of LED lightning in all ATMs
inside the Bank’s premises.
|
|
We replaced with LED lights the ATMs lightning in 25% of the network and applied this system to all new construction works of the Bank. |
|
Organize at least 20% of the Bank’s own events on a “sustainable” basis. |
|
We made “sustainable gifts”, such as bowls and cup handmade by Fundación Los Naranjos and llama wool blankets woven by “Hilandería Warmi”, a spinning venture in Jujuy that groups women from La Puna. |
|
Present and implement in alliance with local municipalities the Eco Bikes Program aimed at promoting sustainable tourism and local development. |
|
We committed and started working the project in more than 10 districts. Most of the projects shall have their openings during 2015. |
Exhibit II – Corporate Governance Explanatory Report
|
|
Compliance |
|
Non- |
|
|
|
|
Total
(1) |
|
Partial
(1) |
|
compliance
(1) |
|
Notify
(2) or Explain (3) |
|
|
|
|
|
|
|
|
|
PRINCIPLE
I. TRANSPARENT THE RELATIONSHIP BETWEEN ISSUER, THE ECONOMIC GRUOP ISSUER LEADS AND/OR INTEGRATES AND ITS RELATED PARTIES |
|
|
|
|
|
|
Recommendation
I.1: Ensure the disclosure by the Management of policies applicable to the relationship of Issuer with the
economic group Issuer leads and/or integrates and with its related parties.
Answer
if:
|
Issuer
has an internal rule or policy of authorization of transactions between related parties in compliance with section 73
of Law 17811, transactions performed with shareholders and members of the Management Body, top managers and auditors and/or
members of the supervisory committee, within the scope of the economic group Issuer leads and/or integrates.
Explain
the main guidelines of the internal rule or policy |
|
x |
|
|
|
|
|
Banco
Macro S.A. (“Banco Macro” or the “Bank”) has adopted a procedure to comply with the provisions
of the Capital Markets Act 26831 and the rules and regulations issued by the Comisión Nacional de Valores or CNV
(N.T. 2003 and its amendments), as to treatment by the Audit Committee of the transactions with related parties involving
a significant amount.
This
procedure includes requesting the Audit Committee its opinion with respect to the transactions meeting the conditions
set forth in the above mentioned law for acts and contracts involving a significant amount.
On
the other hand, note that the Bank carries out its transactions with related parties under the same conditions as with
the rest of its customers, complying with the applicable Credit Policies and the exposure limits regulated by the BCRA.
Additionally,
the Bank, in its capacity as authorized financial entity, complies with the information provisions and obligations set
forth by the Financial and Exchange Entities Act No. 21526 and the regulations issued by the Controlling Entity (Central
Bank of the Republic of Argentina).
Pursuant
to the laws (Business Company Act 19550), the specific applicable rules and regulations issued by the CNV, the professional
accounting principles (Technical Resolution No. 21) and the best practices, the Bank informs about the transactions with
affiliated and related companies (subsidiaries), in notes to the financial statements.
The
information provided includes the relevant transactions carried out with shareholders and managers, in habitual market
conditions. |
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Recommendation I.2: Ensure the existence of mechanisms to prevent conflict of interests.
Answer if:
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Issuer has, notwithstanding
the laws and rules in force, clear policies and specific procedures to identify, handle and resolve any conflict of interest that
may arise between the members of the Management Body, top management officers and auditors and/or members of the supervisory committee
in their relationship with Issuer or with persons related to Issuer.
Include a description of the relevant aspects
of such policies.
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x |
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The Code of Ethics for Directors and Top Management
Officers sets forth the procedure to be followed in case of interest overlapping or conflict of interest.
The Code provides that the Directors and Officers
shall:
* Act honestly and in an ethical manner, including
the ethical handling of any conflicts of interest, be they apparent or real, between their personal and professional relationships,
promoting also an ethical behavior among colleagues and subordinates;
* Avoid any kind of conflict of interest known
by them or which might be reasonably deemed known thereby, reporting the Audit Committee of the Bank’s Board of Directors
(the “Audit Committee”) any significant transaction or personal relationship which might reasonably originate such
conflict of interest; |
Recommendation I.3: Prevent the abuse of privileged information.
Answer if: |
Issuer features, notwithstanding the laws and
rules in force, achievable policies and mechanisms to prevent the abuse of privileged information by the members of the Management
Body, top management officers, auditors and/or members of the supervisory committee, controlling shareholders or shareholders exercising
significant influence, acting professionals and the rest of the persons listed in sections 7 and 33 of the Decree No. 677/01.
Include a description of the relevant aspects of such policies.
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x |
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Banco Macro features a policy applicable to
it and to its subsidiaries (collectively referred to as the “Bank”) in connection with the handling of the confidential
information obtained by directors, executive officers and employees of the Bank and the trading of Securities (as defined below)
issued by the Bank on the basis of such confidential information (hereinafter the “Policy”).
This Policy determines the guidelines allowing
the directors, executive officers and employees of the Bank to comply with the obligations set forth by the laws in force and applicable
to securities in the jurisdictions in which securities of the Bank are traded.
This Policy does not limit in any manner the
restrictions and obligations set forth by the rules and regulations applicable to the trading of Securities. The directors, executive
officers and employees of the Bank must be aware or informed about the obligations imposed by the different local and national
rules and regulations in connection with the trading of Securities, before participating in that kind of transactions. |
PRINCIPLE II. SET THE BASIS FOR A SOLID MANAGEMENT AND SUPERVISION OF ISSUER |
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Recommendation II. 1: Ensure the Management Body assumes the management and supervision of Issuer and the strategic orientation thereof.
Answer whether the Management Body approves : |
II.1.1.1 the strategic o business plan, as well as the management
goals and annual budgets,
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x |
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The Board of Directors each year approves the
Business Plan, containing the description of all management goals and also he Expenditure and Investment Budget.
The Board trusts the Asset and Liability Committee
(ALC) with the preparation of the Business Plan, based on the goals defined by the Bank’s management. In this respect, the
Top Management executes and the ALC revises compliance with the Plan.
The Management Control Department is responsible
for the follow-up of the budgeting process and informs the Asset and Liability Committee about the revisions made and the causes
for the deviations detected by such Department.
The ALC informs the Board on the compliance
with these plans and budgets.
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II.1.1.2 the investment policy (investment in financial and capital
assets) and the financing policy, |
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x |
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The Board trusts the Asset & Liability
Committee (ALC) with the implementation, follow-up and adjustment of the Investment and Financing Policy. The Investment and Financing
Policy is reflected in the Business Plan and the Expenditure and Investment Budget.
The Board evaluates and approves both and also
becomes takes notice of the analyses performed by the ALC with respect to any deviations.
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II.1.1.3 the corporate governance policy (Code of Corporate Governance
compliance)
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X |
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The Board of Directors has approved the Corporate
Governance Policy applicable to the Bank and its subsidiaries. In addition, the Board has decided the creation of the Corporate
Governance & Designations Committee. This Committee is in charge of Supervising the implementation and compliance with the
good practices contemplated in the Code of Corporate Governance in the Bank and the subsidiary companies, all of which shall be
informed to the Board.
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II.1.1.4 the policy of selection, evaluation and remuneration of
first-line managers, |
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x |
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With respect to the evaluation and remuneration
of First-Line Managers, the Bank features a Compensation Policy that contemplates both the fixed remuneration as the variable one;
the latter subject to the process of evaluation of goals and responsibilities.
The Incentive Committee is in charge of controlling
whether the staff economic incentive system is consistent with the entity’s culture, goals, long-term business, strategy
and control environment and the prudent assumption of risks.
The goals that Banco Macro pursues are to compensate
its personnel ensuring recognition of their work and acts, internal equity, competitiveness, productivity, efficiency and added
value.
As to the selection of personnel, Banco Macro’s
policy is to ensure all vacancies are covered with the most appropriate person for each position, prioritizing internal candidates.
The Bank features a selection process that
includes defining position requirements and search strategy, competence selection interviews, level of adjustment to the Bank’s
culture and technical knowledge with Human Resources and the line, and also complementary pre-employment tests, aimed at gathering
as much information as possible to choose the best candidate to fill the position.
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II.1.1.5
the policy of allocation of responsibilities to first-line managers,
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x |
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The Organization Guide includes a summary of
the responsibilities and duties of first-line officers and higher positions (Assistant Directors/Managers) and lower positions.
The Bank’s Organization Guide and Organization Chart are approved by the Board of Directors.
Furthermore, the Bank features several Policies
that the Bank’s officers must observe and comply with, which are approved by such Body.
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II.1.1.6 the supervision of first-line managers
succession plans
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x |
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Through the delegation to the Corporate Governance
& Designations Committee. Such Committee is in charge of the process to replace or substitute top management officers, and
of approving the designation thereof, following the guidelines of the executive officers succession plan. The Bank features guidelines
for the succession of key positions.
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II.1.1.7 the corporate social responsibility
policy,
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x |
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The Bank features a Corporate Social Responsibility
Policy. The Board has decided that the Ethics & Compliance Committee shall be in charge of supervising the application of these
guidelines. Besides, the Bank has a specific department that develops actions related to such policy.
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II.1.1.8 integral risk management and internal
control policies, and fraud prevention policies,
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x |
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Risk Management: The Board has decided the
creation of a Risk Management Committee that shall be in charge of following up top management activities as to credit, market,
liquidity, operational and compliance risk management issues, among others. The Risk Management Committee also advises the Board
on the risks to which the entity is exposed.
Internal Control: The Board defines clear guidelines
with respect to the responsibility of each of the members of the organization. It is the responsibility of Top Management to implement
appropriate internal control systems and to monitor the effectiveness thereof, periodically reporting to the Board about compliance
with goals.
In addition, pursuant to the provisions set
forth in the Capital Markets Act 26831 and the Rules and Regulations thereof as issued by the CNV (N.T. 2013 and the amendments
thereof), it is the responsibility and duty of the Audit Committee to supervise the operation of the internal control systems and
of the administrative and accounting system, as well as the reliability of the latter and of all the financial information or of
other significant events submitted to the CNV (Argentine Securities Exchange Commission) and the self-regulated entities in compliance
with the applicable information requirements.
Furthermore, the Bank has an Internal Audit
Committee –as required by the rules of the Central Bank of the Republic of Argentina- in charge of supervising the appropriate
operation of the internal control systems defined in the entity by means of periodic evaluations.
Finally, the Bank complies with the SOX Certification,
which is part of the regulatory requirements of the New York Stock Exchange (NYSE) for companies listing its shares in the United
States of America, and which requires the assertion that the Entity had, at the end of each fiscal year, an effective internal
control over the financial reporting based on a set of control criteria defined in order to meet the requirements under the Auditing
Standard No. 5 “An Audit of Internal Control Over Financial Reporting That is Integrated with An Audit of Financial Statements”
(AS N. 5) issued by the PCAOB (Public Company Accounting Oversight Board).
This certification is reviewed by our Independent
Auditors.
Prevention of Fraud: The Bank features a department
with specific functions as to the prevention and investigation of frauds. The procedures in this regard are aimed at detecting
behaviors and investigating fraudulent events and practices in order to protect customers’ rights and the Bank’s institutional
image, preserving the transparency and safety of its transactions.
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II.1.1.9 the policy of continuous training and formation for the
members of the Management Body and of first-line managers.
In case this policy is in place, please describe the main aspects
thereof. |
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x |
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The Bank has a continuous training and formation
program for the members of the Board of Directors and Top Management Executives. In addition, these officers, within the scope
of their responsibilities, have the possibility of arranging their training in different subjects or topics related to the business,
facilitating the Bank the necessary resources for such training.
During the last fiscal year, the Directors
have been able to attend presentations related to Corporate Governance, Corporate Social Responsibility, Anti-Money Laundering
issues, given by independent and internal advisors and which have had adequate compliance.
Besides they also attend regular information
sessions about regulatory issues, of banking matters and also about micro and macro-economic aspects, in connection with the context.
Furthermore, Board members and top management
officers frequently participate in courses, seminars or similar events that deal with banking, anti-money laundering issues, etc.
As to management executives, the Human Resources
Head Department designs and implements, on an annual basis, the training and formation program which is approved by the Board.
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II.1.2 If applicable, add other policies applied
by the Management Body and not mentioned herein, and describe the significant aspects thereof.
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x |
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• Code of Banking Practices
• Code of Investor Protection
• Corporate Social Responsibility Policy
• Protection
of Personally Identifiable Information
• Policy of Non-Discrimination in the
Composition of the Board of Directors
• Know Your Organization Structure
Policy
• Anticorruption Policy
• Information Transparency Policy
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II.1.3 Issuer features a policy aimed at ensuring
the availability of relevant information for decision making by its Management Body and a direct enquiry line for management level
members, in order to ensure a symmetric information resource for all its members (executive officers, independent and external)
in equal conditions and with reasonable advance in order to allow the adequate analysis of the its content. Please specify.
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x |
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The Bank complies with the provisions set forth
in the Business Company Act 19550 as to the operation of the Board of Directors as corporate management body.
As to the meetings of the Board, before each
one of them, the members of the Board are given the list of matters to be discussed and all relevant supporting information/ documentation
allowing a correct analysis. Additionally, the members of the Board have the Secretary of the Board to answer any inquiries or
questions that may arise.
On the other hand, the Bank’s committees
operate subject to a set of rules and regulations and under the coordination of an officer, who shall be responsible for the distribution
and access to the information material to be discussed in each meeting, before such meetings are held.
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II.1.4 All matters submitted to the Management
Body are accompanied by an analysis of the risks related to the decisions that such body may make, considering the corporate risk
level defined as acceptable by Issuer. Please explain.
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x |
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The Bank features Risk Management Policies and Procedures and a Risk Management Committee responsible of seeing to the application thereof. Within the scope of such Committee, the Entity has defined, with the Board’s approval, thresholds and limits for each exposure to significant risks, and an authorization scheme for the authorization of these exposures. Besides, Banco Macro features rules for the analysis and approval of new products and procedures, which include the analysis of any related risks. |
Recommendation II.2: Ensure an effective control of corporate
Management.
Answer whether the Management Body verifies: : |
II.2.1 compliance with the annual budget and
the business plan,
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x |
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The Assets & Liabilities Committee is in
charge of following up the compliance with the Business Plan and the Budget. Such Committee shall inform the Board of Directors
about any significant deviation it may detect.
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II.2.2 the acts and actions of first-line managers
and compliance of the goals defined for them (the level of expected profits versus the level of profits actually obtained, financial
rating, accounting report quality, market share, etc.)
Include a description of the relevant aspects
of Issuer’s Management Control policy providing details of the techniques employed and the frequency of the monitoring actions
carried out by the Management Body.
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x |
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The acts and actions of first-line managers
and the fulfillment of their goals are evaluated on a permanent basis.
The Board as a whole and the Directors individually,
through their participation in the different committees of the Bank, continuously evaluate the acts and actions of top management
officers, in addition to the annual planning and evaluation contemplated in the Incentive Policy.
Furthermore, this review is carried out through
the follow-up of the Business Plan and the Budget, which are responsibilities allocated by the Function Manual. |
Recommendation II.3: Disclose the evaluation process of Management’s
performance and the impact thereof.
Answer whether : |
II.3.1 Each member of the Management Body complies with the Bylaws
of the company and, if applicable, with the Operating rules and regulations of the Management Body. Provide details of the main
provisions of such Operating rules and regulations. Indicate the degree of compliance with the company’s Bylaws and the Operating
Rules and Regulations.
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x |
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The Board of Directors has no operating rules
and regulations. Each of its members fully complies with the provisions of the corporate bylaws. Section 10 of the Financial Entities
Act contemplates certain conditions the Directors must comply with. |
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II.3.2 The Management Body reports the results
of its administration taking into account the goals set at the beginning of the year, so that the shareholders are able to evaluate
the compliance degree of such goals, which include both financial and non-financial aspects. Additionally, the Management Body
submits a diagnosis on the compliance degree of the policies described in Recommendation II, items II.1.1. and II.1.2
Describe the main aspects of the evaluation
made by the Shareholders’ Meeting regarding the degree of compliance on the part of the Management Body of the goals set
at the beginning of the year and of the policies described in Recommendation II, items II.1.1 and II.1.2, specifying the date of
the Shareholders’ Meeting during which such evaluation was submitted.
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x |
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The Board of Directors discloses the results
of its administration through the Annual Report and the Balance Sheet, pursuant to section 66 and 63 of the Business Company Act
19550, respectively.
In addition, the Board set a Board Self-Assessment
Policy, being the Corporate Governance Committee the body in charge of implementing this policy, which shall be carried out individually
(with a Self-Assessment Survey) and in group, pursuant to the consolidated results obtained.
The Explanatory Report on the Code of Corporate
Governance and the Corporate Governance Policy supplement the disclosure regarding the management scope.
Finally, it is worthwhile mentioning that the
Directors’ administration has never been questioned by the shareholders. |
Recommendation II.4: That the number of external and independent
members be a significant proportion in the Management Body.
Answer whether: |
II.4.1 The proportion of executive
external and independent officers (the latter as defined in the rules of this Commission) of the Management Body relates
to Issuer’s capital structure. Please specify.
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x |
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The Bank has the number of independent
directors that is necessary to meet the requirements of the rules of the Central Bank of the Republic of Argentina, the
Argentine Securities Exchange Commission and the Securities and Exchange Commission (“SEC”) and relates to
Issuer’s capital structure. |
II.4.2 During the present year, the
shareholders agreed at a Shareholders’ Meeting upon a policy aimed at keeping a proportion of at least 20% of independent
members over the total number of members of the Management Body.
Describe the relevant aspects of such policy
and any other shareholders agreement that may help to understand the way in which the members of the Management Body are designated
and for how long. Specify whether the independent capacity of the members of the Management Body was questioned during the course
of the present year and whether there has been any abstention due to conflict of interests.
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x |
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There is no need of a shareholders’ agreement
to keep a proportion of at least 20% of independent members, pursuant to the laws mentioned in the preceding item.
The Bank complies with the indicated proportion
since five out of the 12 members elected by the Shareholders’ Meeting to compose the Board of Directors have declared their
independent capacity, and therefore, the proportion achieves 41% of the members.
The independent capacity of the members of
the Board has not been questioned. |
Recommendation II.5: Commit to the existence of rules and proceedings
inherent to the selection and proposal of the members of the Management Body and first-line managers.
Answer whether : |
II.5.1 Issuer has a Designations Committee |
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x |
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The Bank has a Designations Committee (known
as Corporate Governance and Designations Committee)
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II.5.1.1 composed by at least three members of the Management Body,
a majority of which acts as independent member,
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x |
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The Corporate Governance and Designations Committee
is composed of three members of the Board and only one of them acts as independent director. |
II.5.1.2 chaired by an independent member of
the Management Body,
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x |
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The Bank determined this Committee shall be
chaired by an independent director.
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II.5.1.3 whose members prove to have enough
knowledge and experience in human capital policy matters
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x |
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The members of the Committee have long and
proved experience in terms of Human Resources and solid knowledge of the banking business. |
II.5.1.4 that meets at least twice a year.
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x |
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The Committee meets at least semi-annually. |
II.5.1.5 whose decisions are not binding for
the General Shareholders’ Meeting but rather of an advisory nature as to the selection of the members of the Management Body. |
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x |
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For the Argentine Law, the shareholders are
the only ones authorized to propose the members who shall compose the Board.
According to the Board of Directors definition,
under the Corporate Governance Policy, the directors must be morally suitable and have experience in and knowledge of the banking
business. There are no formal requirements to participate in the board apart from those set forth by the applicable laws.
On the other hand, the Central Bank of the
Republic of Argentina (BCRA), through its CREFI circulars (communications regarding the Creation and Operation of Financial Entities),
sets forth evaluation criteria followed in order to grant the authorization to the directors designated by the shareholders’
meeting.
Pursuant to the rules of the BCRA, the boards
of financial entities shall be composed of at least an 80% of persons with knowledge and previous experience related with financial
activities.
Therefore, the background of the directors
appointed by the shareholders’ meeting are evaluated by the Central Bank and such directors may not hold such positions without
being previously authorized by the Board of such Institution.
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II.5.2 In case the entity has a Designations Committee, answer
whether such Committee :
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II.5.2.1. verifies the annual review and evaluation
of its rules and regulations and suggests the Management Body the amendments for the approval thereof,
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x |
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The Committee revises on an annual basis its
rules and regulations and suggests to the Board any possible amendments or changes to be done. |
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II.5.2.2 proposes the development of criteria
(qualification, experience, professional reputation, ethics and other) for the selection of new members of the Management and first-line
managers,
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x |
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The Board of Directors has defined the criteria
for the selection of new members of the Board and included them in the Corporate Governance Policy (see II.5.1.5).
The Bank’s directors must be morally
suitable and have experience in and knowledge of the banking business. There are no formal requirements to participate in the board
apart from those set forth by the applicable laws.
Fulfillment with such requirements is evaluated
at the time of the proposal for the designation of the directors made by the shareholders’ meeting as well as on a periodic
basis during the time the director holds office as such.
As to First-line Managers, the Bank features
a selection process that includes defining position requirements and search strategy, competence selection interviews, level of
adjustment to the Bank’s culture and technical knowledge with Human Resources and the line, and also complementary pre-employment
tests, aimed at gathering as much information as possible to choose the best candidate to fill the position. |
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II.5.2.3 identifies candidates to hold office
as members of the Management Body to be proposed by the Committee to the General Shareholders’ Meeting,
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We consider this item does not apply since the Argentine laws establish that the proposal for the designation of new Directors must be submitted by the shareholders, who have not delegated such functions. |
II.5.2.4 suggests members of the Management Body who shall act as
members of the different Committees within the Management Body in accordance with their background
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We consider this item does not apply since
the Board of Directors is the body deciding the composition of the Bank’s Committees.
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II.5.2.5 recommends
that the Chairman of the Board shall not simultaneously act as General Manager of Issuer
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x |
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The
Bank complies with this recommendation since the President of the Bank does not act as general manager. The Board has delegated
certain functions and responsibilities to an Executive Committee (the creation of which is provided for in the bylaws). Two assistant
managers, one of them with commercial functions and the other one with operating functions, report to such Executive Committee.
Staff departments of the Board also depend of the Executive Committee.
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II.5.2.6 ensures the availability of the resumes
of the members of the Management Body and first-line managers in Issuer’s web site, where there is express indication of
the term of their mandates in the first case,
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x |
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Pursuant to the provisions of the Board contemplated in the Transparency Policy, the Bank’s web site shows the information regarding the composition and a brief description of the resumes of the directors, the members of the supervisory committee and first-line managers. |
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II.5.2.7 confirms the existence of a succession plan applicable
to the Management Body and first-line managers
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x |
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The Argentine laws grant the shareholders’
meeting the power to appoint the members of the board of directors of a company.
First-line Managers. When companies
need to develop a Business Strategy, they require physical and financial assets, and inevitably people to provide them
with the knowledge and management capacity.
For this reason, the Bank decided
that Human Capital must also be planned, in order to efficiently meet present and future requirements of the business.
This planning implies: identifying
business needs and what competences and capabilities we will need; when should they be available and implementing actions
to have the necessary professional resources for each moment.
It’s Banco Macro’s policy
to have a qualified professional team to hold Management positions and to allow the Bank’s short, medium and long-term
growth and development.
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II.5.3 If applicable, please add any implemented policies
designed by the Designations Committee of Issuer not mentioned in the preceding item.
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Not Applicable. |
Recommendation II.6: Evaluate whether it is convenient to have
the members of the Management Committee and/or auditors and/or members of the supervisory committee rendering services for several
Issuers.
Answer whether: |
Issuer establishes a limit to the
members of the Management Body and/or auditors and/or members of the supervisory committee to render services for or hold offices
in other entities that are not part of the economic group, controlled by Issuer and/or of which Issuer is a member. Specify such
limit and indicate whether during the year Issuer detected and verified any violation of such limit. |
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x |
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The board considers appropriate not to limit
the number of companies in which the directors and/or auditors of the Bank may hold office as such. The board bases its decision
in this respect on the diversity of knowledge and experience that such other offices may contribute to the directors and/or auditors.
This decision is contemplated in the Corporate
Governance Policy as approved by the Board of Directors. |
Recommendation II.7: Ensure the training and development of the
members of the Management Body and first-line managers of Issuer
Answer whether : |
II.7.1 Issuer has continuing Training
Programs related to Issuer’s needs for the members of the Management Body and first-line managers, which include
matters regarding their role and responsibilities, the integral management of business risks, specific aspects of the
business and the rules and regulations applicable thereto, corporate governance dynamics and matters regarding corporate
social responsibility. In the case of the members of the Supervisory Committee, international accounting standards, audit
and internal control principles and rules and specific capital market rules and regulations.
Describe the programs implemented during the year and the
level of fulfillment thereof. |
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x |
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The Bank features a continuing formation
and training program for the members of the Board and Top Management officers. In addition, these officers, within the
scope of their responsibilities, have the possibility of arrange their training in different subjects related to the business,
and the bank facilitates the necessary resources to allow such training.
During the last fiscal year, the Directors
have attended training courses on Corporate Governance, Corporate Social Responsibility, Anti-Money Laundering, which
have been given by independent and internal advisors and have had adequate compliance.
Besides, they are given information
sessions related to regulatory matters of banking nature and also on micro and macroeconomic aspects.
They frequently participate in courses,
seminars or similar events on banking, anti-money laundering matters, among other subjects.
As to management executive officers,
each year the Human Resources Department designs and implements the formation and training program.
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II.7.2 Issuer encourages, by
other means not described in II.7.1 above, the members of the Management Body and first-line managers to keep a constant training
to complement is formation level in order to add value to Issuer. Indicate how Issuer accomplishes this.
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x |
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The formation and training program
is aimed at fostering the compromise of those who direct the company so that they are the main transmission sources both
of knowledge and the Bank’s culture.
Therefore, our policy includes both
internal and external training activities in order to allow the officers to propose the formation alternatives that best
suit or meet their needs and the needs of the person to carry out his/her work at the Bank. |
PRINCIPLE III. GUARANTEE AN EFFECTIVE POLICY OF IDENTIFICATION, MEASUREMENT, MANAGEMENT AND DISCLOSURE OF BUSINESS RISK |
Recommendation III: The Management Body must have an integral
business risk management policy and monitors the appropriate implementation thereof.
Answer whether :
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III.1 Issuer features integral business risk
management policies (compliance with strategic, operating, financial goals, with account reporting requirements, laws and rules
and regulations, among other). Please describe the most relevant aspects of such policies.
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x |
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Macro Risk Management Policy defines the environment
for the risk management process, under the notions of risk identification, measurement and monitoring. It also establishes the
responsibilities of each level within the Organization in this process.
The risk management process includes the Board
defining exposure limits for each of the risks, following up the exposure of each of such limits by the persons in charge, preparing
periodic reports for the Risk Management Committee, following up the alerts and applying the relevant action plans to such alerts.
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III.2 There is a Risk Management Committee
within the Management Body or the General Management. Please inform about the existence of procedural guidelines and provide
details of the principal risk factors that are specific for Issuer or its activity and the implemented mitigation actions.
In the absence of such Committee, please describe the supervisory function performed by the Supervisory Committee as the
risk management.
Additionally, specify the interaction
level between the Management Body or its committees and Issuer’s General Management regarding the integral business
risk management actions and proceedings.
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x |
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The Board of Banco Macro approved
the creation of a Risk Management Committee. One of its responsibilities is to ensure the definition of an independent
risk management, coordinating the administration of the different kinds of risks and the corresponding persons in charge
thereof.
In this sense, the Committees coordination
includes the persons in charge of Financial Risk, Credit Risk, Operational Risk and Compliance Risk; being as well responsible
for the application of the guidelines contemplated in the macro Risk Management policy. Both assistant general managers
participate in the Committee as well.
Within the scope of risk management,
each person in charge of risk management issues designs and implements the specific policies and proceedings applicable
to each of the risks (credit, market, operational), follows up risk exposure based on the limits and/or thresholds defined
for each risk in agreement with the Board. Additionally, the person in charge informs about any alerts that may arise
and coordinates the implementation of the applicable action plans to regularize the situation. The description of the
risk management framework is included in the Annual Report prepared for the present fiscal year, in the notes to the Financial
Statements and in our Web site.
The Committee keeps the Board updated
and informed about the risk management framework. The Board is aware of all the minutes of the meetings held by the Committee. |
III.3 There is an independent function
within Issuer’s General Management that implements the integral risk management policies (function of the Risk Management
Officer or equivalent). Specify.
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x |
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Risk management responsibility falls
on the Risk Committee.
The Risk Management Committee is in
charge of following up Top Management’s activities as to credit, market, liquidity, operational, compliance and
reputation risk management matters, among other things.
Is the responsibility of the Committee
to establish an independent risk management, coordinating the administration of the different kind of risks and the corresponding
persons in charge. It also advises and keeps the Board informed about the entity’s risks. |
III.4 Integral risk management policies
are constantly updated in accordance with the recommendations and methods recognized and accepted in this field. Specify
which ones (Enterprise Risk Management, under the scope of COSO – Committee of Sponsoring Organizations of the Treadway
Commission-, ISO 31000, IRAM 17551, section 404 of Sarbanes-Oxley Act, others)
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x |
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Risk Management Policies are continuously
updated, adjusting the bank’s practices to the best market practices, based on the model’s maturity.
Those officers in charge of Credit
Risk, Market Risk, Operational Risk and Compliance Risk issues keep their policies and specific procedures updated and
submit to the consideration of the Risk Committee any amendments or changes that must be introduced and, also, recommend
the Committee the incorporation of improved aspects into the Macro Risk Management Policy.
Risk management policies are in line
with the recommendations issued by the Basle Committee and the rules of the BCRA and complies with section 404 of Sarbanes-Oxley
Act.
|
III.5 The Management Body communicates
the results of supervision of risk management actions performed on a joint basis with the General Management in the financial
statements and in the annual report. Describe the main aspects of the statements made therein.
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x |
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The risk management framework is shown
through the Notes to the Financial statements, the Annual Report for the relevant fiscal year, and in our Web site section
called Investors Relations.
(http://ri-macro.com.ar/).
Additionally, in such web site we publish the Market Discipline report, a summary of the risk management framework applied
by the Bank.
The main aspects of the disclosure
involve a description of the process of identification, measurement, monitoring and control applicable to each risk, as
well as the guidelines for stress tests and the methods used to determine de economic capital.
|
PRINCIPLE IV. PROTECT THE INTEGRITY OF FINANCIAL INFORMATION
WITH INDEPENDENT AUDITS
|
Recommendation IV: Guarantee the independence and transparency
of the functions entrusted to the Audit Committee and the Independent Auditor.
Answer whether : |
IV.1. At the time the Management Body appoints
the members of the Audit Committee, taking into account that the majority of them must be independent, evaluates the convenience
that such Audit Committee be presided by and independent member.
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x |
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The Bank lists its shares in the New York Exchange;
therefore it is subject to Rule 10A-3 of the Securities Exchange Act of 1934 (Section 303A.06), which establishes that all the
members of the Audit Committee must be independent Directors.
The Bank’s Audit Committee is composed
of three regular directors and one alternate director, who are independent under the rules of the CNV. Accordingly, the Chairman
of the Audit Committee must be an independent Director.
|
IV.2 There is an internal audit function reporting
to the Audit Committee or to the Chairman of the Management Body and that is in charge of evaluating the internal control system.
Indicate whether the Audit Committee or the
Management Body makes an annual evaluation about the performance of the internal audit department and the degree of independence
of its professional work, meaning that the professionals in charge of such function are independent from the rest of the operating
departments and also meet independency requirements as to the controlling shareholders or related entities having significant influence
on Issuer.
Specify, as well, whether the internal audit
function carries out its work in accordance with the standards of international profession of internal audit issued by the Institute
of Internal Auditors (IIA). |
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x |
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There is an Internal Audit function that reports
to the Audit Committee provided for in section 109 of the Capital Markets Act 26831 and to the Internal Audit Committee (the latter,
required under the provisions of the Central Bank of the Republic of Argentina).
The
Audit Committee provided for in section 109 of the Capital Markets
Act 26831 performs an annual review on the performance of the Internal Audit department and also on the degree of independence
of such activities. This evaluation is carried out by reviewing the internal auditors’ plans and the performance thereof.
Particularly, there are periodic meetings with them in order to learn about: i) their responsibilities, ii) the internal audit
policies and proceedings, iii) the scope and plans for the fiscal year, including the sufficiency of available resources to be
used, personnel’s experience and related costs, iv) their evaluation on the quality of the controls carried out by the Entity,
v) fraud-related risk factors, and vi) the kind of reports issued thereby and to whom they address and send such reports. In addition,
they discuss about: i) the quality of the Entity’s general control environment, ii) the material recommendations to improve
internal controls and the Board’s response to such recommendations, iii) the treatment given to material recommendations
issued by independent auditors in order to improve internal control and, iv) the effectiveness of internal controls over the accounting
reports to be used by third parties.
The Internal Audit department reports directly
to the Committee, being independent form the operating and business departments.
The internal audit department performs its
work in accordance with the standards of international profession of internal audit issued by the Institute of Internal Auditors
(IIA).
In addition, the Internal Audit department
is evaluated by the Central Bank of the Republic of Argentina. |
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IV.3 The members of the Audit Committee perform an annual evaluation
of the competence, independence and performance of Independent Auditors appointed by the Shareholders’ Meeting. Describe
the relevant aspects of the proceedings used to carry out such evaluation.
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x |
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The
Audit Committee provided for in section 109 of the Capital Markets
Act 26831 makes an annual evaluation of the competence, experience and performance of Independent Auditors, through periodic meetings
with them in order to learn about: i) the internal quality controls the have, ii) the scope and plans for their reviews limited
by interim periods and for their audit for the final year, including the sufficiency of the resources to be used and the fees,
iii) their evaluation of the risk of material errors in the financial statements and the designed controls, iv) the departments
evaluated as of higher risk, and v) internal control improvement recommendations. Besides, at such meetings the Audit Committee
and the Independent Auditors discuss about: i) critical accounting policies and alternative accounting treatments discussed with
the Management, ii) the most significant estimates and opinions, iii) changes in the scope of the work or proceedings planned
due to a change in risk assessment, iii) weakness in internal control of accounting reporting, iv) the use of specialized people
or experts in material matters, and v) the results of their limited reviews and audits.
Finally, the Committee evaluates the different
professional services and their relationship with independence, pursuant to the provisions of the professional standards, the CNV’s
rules and regulations and the internal policies aimed at ensuring compliance with the above described independence rules and/or
standards. The Bank has obtained information on the composition of the fees billed by the different services rendered in accordance
with the categorization defined under the CNV’s rules and regulations.
The Independent Auditors’ function
is in turn evaluated by the Central Bank of the Republic of Argentina. |
IV.4 Issuer features any policy regarding the rotation of the members of the Supervisory Committee and/or the Independent Auditor; and in connection with the latter, whether such rotation includes the auditors company or firm or only the individuals that are members thereof. |
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x |
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The provisions of the Central Bank of the Republic
of Argentina, through the CONAU rules – Accounting and Audit, Chapter F – Minimum Provisions on Independent Audits
of the BCRA, provide for the rotation of the signing partner every five years.
On the other hand, the provisions of the CNV
for issuing companies provide that the maximum period in which an firm or company may perform audit functions in an entity authorized
to make public offering of its negotiable securities, must not exceed THREE (3) years and that the members of such audit firm or
company may not act as such form more than TWO (2) years.
In addition, the Bank has no rotation
policy applicable to the members of the Supervisory Committee, since the designation thereof is the responsibility of the shareholders. |
PRINCIPLE V. RESPECT THE RIGHTS OF SHAREHOLDERS
|
Recommendation V.1: Ensure shareholders have access to Issuer’s
information.
Answer whether : |
V.1.1 The Management Body promotes periodic information meetings
with the shareholders simultaneously with the presentation of the interim financial statements. Provide details and indicate the
number and frequency of the meetings held during the year.
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x |
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The Investor Relations department, operating
within the Finance Managing Department and whose purpose is to create and maintain relations with institutional investors, analysts
and other agents of the local and international financial system, organized during 2012 four public conference calls with investors,
in which they submitted the quarterly/annual statements of income. |
V.1.2 Issuer features mechanisms to keep investors informed and
a specialized department to attend to their queries. It also has a web site available to the shareholders and other investors,
and allowing an access channel for them to be able to contact among themselves. Provide details.
|
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x |
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|
Issuer features a cannel open to investors
through its web site and a specialized department devoted to managing Investor Relations through which investors may direct their
queries and/or requests.
Additionally, Issuer hired a press release
distribution services and a mail distribution system (mailing) that allows the distribution of all news Issuer considers relevant.
Due to the shareholding structure
of Banco Macro and the knowledge they have of each other, the Bank does not consider necessary to establish access channels to
allow the shareholders to contact among them. |
Recommendation V.2: Encourage shareholders’ active participation.
Answer whether : |
V.2.1
The Management Body adopts actions to encourage the participation of all the shareholders in the General Shareholders’
Meetings. Specify, differentiating those measures or actions required by law and those voluntarily offered by Issuer to
its shareholders.
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x |
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Banco
Macro considers very important to encourage and Foster the attendance and active participation of minority shareholders
in the meetings. The Board is permanently watching over the respect of the rights of all the shareholders.
There
are no restrictions at all which may limit the participation of such shareholders, being their rights legally and statutorily
guaranteed and protected.
|
V.2.2
2 The General Shareholders Meeting has Rules and Regulations for its operation that ensure the information is available
to the shareholders, sufficiently in advance for decision making. Describe the main guidelines of such Rules and Regulations.
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x |
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The provisions of
the Business Company Act No. 19550 ensure that the information and documentation for decision making by the shareholders’
meeting is available to the shareholders sufficiently in advance. |
V.2.3
The mechanisms implemented by Issuer for the minority shareholders to propose matters to be discussed at the General Shareholders’
Meeting pursuant to the laws in force. Explain the results.
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x |
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|
Banco Macro complies
with the mechanisms established under Act 19550 and the Rules of the Argentine Securities Exchange Commission (CNV), so that
the minority shareholders may propose mattes to be discussed at the General Shareholders’ Meeting. |
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V.2.4
Issuer features policies encouraging the participation of the most relevant shareholders, such as institutional investors.
Specify.
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x |
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|
Banco
Macro complies with the applicable laws and, therefore, gives the same treatment to all the shareholders.
The
Bank has a department of Investor Relations devoted to create and maintain relations with institutional investors, analysts
and other local and international financial system agents.
|
V.2.5
At Shareholders’ Meetings, the agenda of which includes the designation of members of the Management Body, the entity
discloses, prior to voting: (i) the position of each of the candidates as to the adoption or not of a Code of Corporate
Governance; and (ii) the basis for such position.
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The
Bank has determined that these representations be made at shareholders’ meetings and this aspect is communicated
to the shareholders in the notice calling to the relevant meeting.
|
Recommendation V.3: Guarantee the equity principle between share
and vote.
Answer whether : |
Issuer features a policy that encourages the
equity principle between share and vote. Indicate the changes in the composition of outstanding shares per class during the last
three years.
|
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X |
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|
Pursuant to Sect. 216 of the Business Company
Act 19550, no shares with privileged voting rights may be issued after the company has been authorized to enter the public offering
regime.
Therefore, at present Banco Macro cannot issue
shares with plural voting votes. The existing 11,235,670 shares with 5 votes represent 1.9% of the total outstanding shares.
The composition of the capital stock has not
changed during the last three years:
Class A Shares: 11,235,670
Class A + Class B Shares: 584,563,028 |
Recommendation V.4: Define mechanisms to protect all the shareholders
from control changes.
Answer whether : |
Issuer
adheres to the public offering regime of mandatory acquisition. Otherwise, specify if there are other alternative mechanisms
provided for in the entity’s bylaws, such as tag along or other.
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x |
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Banco
Macro adheres to the mandatory public offering regime of acquisition under the Capital Markets Act 26831 and its applicable
Rules and Regulations issued by the CNV (N.T. 2013 and the amendments thereof). |
Recommendation V.5: Increase the percentage of outstanding shares
over capital sock..
Answer whether : |
Issuer has a stock dispersion of at least 20%
for its common shares. Otherwise, Issuer has a policy aimed at increasing stock dispersion in the market.
Indicate Issuer’s stock dispersion as
a percentage of Issuer’s capital stock and the changes it went through during the last three years. |
|
x |
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|
Banco Macro’s stock dispersion index is above the 20% defined
as good practice.
Three comparative years: (Add Table)
Floating
Anses (FGS) Controlling Group
12/31/2012 29.84
30.97 39.19
31/12/2013 30.37 30.97 38.66
31/12/2014 29.96 30.97
39.07 |
Recommendation V.6: Ensure a transparent dividend policy. Answer whether : |
V.6.1 Issuer features a dividend
distribution policy under the Corporate Bylaws and approved by the Shareholders’ Meeting, which establish the conditions
to distribute dividends in cash or in kind. If such policy exists, indicate the criteria, frequency and conditions that must
be met to declare the payment of dividends. |
|
x |
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|
Section
32 of the bylaws provides for the application by shareholders’ meeting shall of the net profits reported in the
financial statements as approved by such management.
The
Corporate Governance Policy provides that the dividend distribution policy of Banco Macro is based on keeping the appropriate
balance between the distributed amounts and the investment and expansion policies of the Bank. It is worthwhile to mention
that this dividend policy may be conditioned in the future for the existence of market regulations and for the strategic
plans that the company may adopt on each opportunity.
Additionally,
the distribution of dividends to shareholders is regulated by Communication “A” 5072 (Revised CONAU-B. Accounts
Manual – 9. Income Distribution) issued by the Central Bank of the Republic of Argentina and subject to its express
approval.
|
V.6.2
Issuer has documented processes for the preparation of the proposal regarding the application of accumulated earnings
of Issuer deriving in the creation of legal, statutory or voluntary reserve funds, or carry forwards and/or payment of
dividends.
Explain
such processes and provide details as to which Shareholders’ Meeting approved the distribution (in cash or in kind)
or otherwise resolved no to distribute such earnings, in case there are no provisions regarding this aspect in the Corporate
Bylaws.
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x |
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The
Bank features a procedure for the preparation of the “Year Profit Distribution Project”. Such procedure involves
the determination of the distributable amount under the provisions of Communication “A” 5372 of the Central
Bank of the Republic of Argentina, the issuance of accompanying reports on the results thereof, the effects of the potential
distribution of profits on the technical relationships with the BCRA, the Banks financial position and Business Plan.
These reports are submitted to the Board of Directors to be taken into account at the time of making the proposal to be
submitted to the Shareholders’ Meeting, which shall be previously authorized to by the Superintendency of Financial
and Exchange Entities, in case it contemplates the distribution of cash dividends.
The
Shareholders’ Meeting held on April 29th 2014 resolved to apply the retained earnings of the year 2013
as follows:
“Total
Retained Earnings: 2,515,402,050.52, applied as follows: a) AR $488,713,267.35 to the Legal Reserve fund; b) AR $95,325,750
to the Statutory Reserve fund – Special Statutory Reserve Fund for Subordinated Debt Instruments under the global
program of Negotiable Obligations approved by the general shareholders’ meeting held on September 1st 2006; c) AR$
19,711,710.67 to tax on corporate personal assets and participating interests; d) AR$ 1.911,621,322.50 to the optional
reserve fund for future distributions, pursuant to Communication “A” 5273 issued by the Central Bank of the
Republic of Argentina. The Shareholders’ Meeting further resolved to approve the release of $596,254,288.56 from
the optional reserve fund created by the General and Extraordinary Shareholders’ Meeting held on April 16th
2012, for the payment of a cash dividend. |
PRINCIPLE VI. MAINTAIN A DIRECT AND RESPONSIBLE RELATIONSHIP WITH THE COMMUNITY |
|
Recommendation VI: Provide to the community the disclosure of
matters related to Issuer and a direct communication channel with the company.
Answer whether : |
VI.1 Issuer features an updated public access
Web site, not only providing company-related information (bylaws, economic group, composition of the Management Body, financial
statements, annual report, among other information) but also servicing and attending to customers queries in general.
|
|
x |
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|
Banco Macro’s Web site contains an “Investors”
link where the Bank presents company-related information required to comply with the best practices.
In addition the Bank has defined several contact
mechanisms through the channels receiving customers’ queries (branch offices, call center, customer service, Internet banking). |
VI.2 Issuer issues a Social Corporate and Environmental
Responsibility Report on an annual basis, under the verification of an Independent Auditor. In case it does so, indicate the scope
or legal or geographical coverage thereof and where to find it. Specify which standards or initiatives Issuer has adopted to carry
out its corporate social responsibility policy (Global Reporting Initiative and/or United Nations Global Compact ISO 26,000, SA8000,
Milenium Development Goals, ESG 21-Foretica, AA 1000, Equator Principles, among other).
|
|
x |
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Banco Macro issues from the year 2007
its annual report on Corporate Social and Environmental Responsibility accounting for the actions performed throughout
the country. For the preparation thereof the Bank uses the guidelines provided under G3 standards of the Global Reporting
Initiative (GRI). This document represents in addition the Communication on Progress that the members of the United Nations
Global Compact must annually submit and to which we adhere since 2009. The report had in its last edition a revision made
by the Bank’s Internal Audit department. These documents are available in http://macro.com.ar/institucional
|
PRINCIPLE VII. PAY FAIR AND RESPONSIBLE REMMUNERATIONS |
|
Recommendation VII: Define clear remmuneration policies applicable
to the members of the Management Body and first-line managers, paying particular attention to the recognition of conventional or
statutory limitations based on the existence or non-existence of earnings.
Answer whether: |
VII.1 Issuer has a Remuneration Committee
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x |
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The Board has established the creation of an
Incentive Committee, with responsibilities regarding the supervision of the economic incentive system applicable to the Bank’s
personnel and its consistency with the Entity’s culture, goals, long-term business, strategy and control environment and
prudent assumption of risks. In the definition and description of such responsibilities the Entity considered the recommendations
issued by the Central Bank of the Republic of Argentina in its Communication “A” 5201 – Financial Entities Corporate
Governance Guidelines.
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VII.1.1 composed of at least three members
of the Management Body, in its majority independent members,
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X |
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The Incentives Committee is composed of 3 members, out of which one is an independent director. |
VII.1.2 presided by an independent member of the Management Body, |
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x |
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The Remuneration Committee is presided by an
independent director.
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VII.1.3 composed by members who prove to have
sufficient knowledge and experience in human resources policies,
|
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x |
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The Committee members prove to have knowledge and experience in banking business matters and in human resource management-related policies. |
VII.1.4 that meets at least twice a year,
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X |
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The Committee meets at least semiannually.
|
VII.1.5 whose decisions are not necessarily binding upon the General
Shareholders’ Meeting or the Supervisory Committee , but are of an advisory nature as to the remuneration of the members
of the Management Body.
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x |
|
The Argentine laws provide that the Shareholders’
Meeting shall evaluate on an annual basis the performance and acts of the Board at the time of holding the general meeting evaluating
the matters provided for under subsections 1 and 2 of section 234 of the Business Company Act No. 19550. To the date hereof, such
body has not evaluated the possibility that the Board evaluates its own performance prior to the holding of such Shareholders’
Meeting.
Notwithstanding the above, the Board has established
for its own management, the Board’s Self-Assessment Policy, being the Corporate Governance Committee the body in charge of
seeing to the implementation thereof, which shall be performed individually (through a Self-Assessment Survey) and in group, pursuant
to the consolidated results obtained. |
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VII.2 If Issuer does not have a Remunerations
Committee, answer whether: |
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VII.2.1 it ensures the existence of a clear
relationship between the key personnel’s performance and the fixed and variable remuneration thereof, taking into account
the risks assumed and the management thereof,
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x |
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The Variable Remuneration program, within the
scope of the Remuneration Policy, is consistent with the mission and values of the organization, the goals, the long-term business
sustainability, the strategy, the control environment and the prudent assumption of risks. The Variable Remuneration is aimed at
recognizing the extraordinary performance of the employees in accordance with:
· the
employee’s contribution to the results obtained
· the
employee’s acts in line with the mission and values of the Organization
The relevant variables for the determination
of the remunerations are the following:
· Position’s
degree of responsibility and complexity
· Employee’s
Capacities and Potential
· Employee’s
Performance and Results
· Position
with respect to reference market
· Organization’s
results |
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VII.2.2 it supervises that the variable portion of the remuneration of the members of the Management Body and first-line managers relates to the medium/long-term performance of Issuer, |
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x |
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|
The Incentives Committee supervises compliance
with the Remuneration Policy and carries out an annual revision of the entire incentive system. The Remuneration Policy, in its
chapter on variable remuneration, includes the First-line Managers and some supervision positions.
The remuneration of the Directors is determined
by the Shareholders’ Meeting that evaluates on annual basis the performance and acts of the Board at time of holding the
general meeting called to consider the matters provided for under subsections 1 and 2 of section 234 of the Business Company Act
No. 19550.
The shareholders’ meeting defines
a fixed amount as annual remuneration of the directors in accordance with reasonability criteria, based on the results obtained
during their administration, taking into account the provisions of the Business Company Act No. 19550, as amended and supplemented
and the Rules of the Argentine Securities Exchange Commission (CNV). |
VII.2.3 it revises the competitive position
of Issuer’s policies and practices as to remunerations and benefits of comparable companies, and recommends or does not recommend
changes,
|
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X |
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The Remuneration Policy includes as fixed remuneration
revision mechanism the evaluation of the level thereof within the market scenario.
|
VII.2.4 it defines and communicates Issuer’s employee-retention,
promotion, dismissal and suspension policy applicable to key personnel,
|
|
X |
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The Remuneration Policy, the supervision of
which is the responsibility of the Incentive Committee, contemplates the mechanisms to be applied in order to evaluate the retention
and promotion of the employees marked as key employees for the organization.
On the other hand, the Bank has implemented
a Code of Ethics and a Code of Business Conduct applicable to its officers. Deviations from internal compliance standards, is
within the scope of the Ethics and Compliance Committee and some of the penalties are the suspension or dismissal of employees.
|
VII.2.5 it informs the guidelines to determine
the retirement programs for the members of Issuer’s Management Body and first-line managers,
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Not applicable since Issuer has not defined
retirement programs.
|
VII.2.6 it accounts on a regular basis for
the actions taken and the matters analyzed during its meetings to the Management Body and the Shareholders’ Meeting,
|
|
x |
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The Board acknowledges the minutes of the meetings
held by the Incentive Committee. |
VII.2.7 it guarantees the presence of the chairman
of the Remuneration Committee at the General Shareholders’ Meeting approving the remunerations payable to the Management
Body for the chairman to explain Issuer’s policy as to the remuneration of the members of the Management Body and first-line
managers.
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This item does not apply since the shareholders’
meeting determines the annual remuneration of the directors in accordance with the reasonability criteria, based on the results
obtained during their administration, taking into account the provisions of the Business Company Act No. 19550, as amended and
supplemented and the Rules of the Argentine Securities Exchange Commission (CNV).
In addition, it is not applicable
for the reasons described in the Remuneration Policy and because in the case of Banco Macro First-line Managers are hired by the
Bank and receive no additional payments apart from their remuneration. |
VII.3 If relevant, please mention the policies
applied by the Remuneration Committee of Issuer not described in the preceding section.
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Not applicable. |
VII.4 If Issuer has a Remuneration
Committee, explain how the functions described in VII.2 are performed within the Management Body. |
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Not applicable. |
PRINCIPLE VIII. ENCOURAGE CORPORATE ETHICS
|
Recommendation VIII: Guarantee ethical behavior within Issuer.
Answer whether : |
VIII.1 Issuer has a Code of Business Conduct. Describe the main
guidelines and if such Code is available to the public in general. Answer if such Code is signed by at least the members of the
Management Body and first-line managers. Indicate whether Issuer’s employees are encouraged to apply such Code to suppliers
and customers.
|
|
x |
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|
Banco Macro has adopted a Code of Ethics for
first-line financial officers (hereinafter referred to as the “Code of Ethics”), applicable to directors and first-line
managers of the Bank and to the persons that carry out similar functions (jointly referred to as “First-line Financial Officers”).
This Code is available to the public in general and can be found in our corporate web site.
The Bank expects all its employees to act in
accordance with the highest personal and professional integrity levels in all aspects of their activity, to comply with the applicable
laws, to discourage the performance of reprehensible acts and to abide by the Bank’s Code of Conduct and other policies and
proceedings adopted by the entity and that regulate the conduct of its employees. This Code of Ethics supplements the Bank’s
Code of Conduct.
Furthermore, the Bank has implemented the Code
of Conduct for Suppliers, aimed at transmitting suppliers the mission, philosophy and values of the Bank, so as to bring to them
the responsibility of sustainable actions. This Code includes aspects such as Ethical Behavior, Human Rights, Employment Practices,
Environment and Conduct.
|
VIII.2 Issuer features mechanisms to receive the reporting of any unlawful act or any non-ethical action, in person or through any electronic means ensuring the information transmitted meets high confidentiality and integrity standards, such as those of registration and preservation of information. Indicate whether the report-reception and evaluation services are rendered by Issuer’s personnel or by independent professionals for additional protection of those who report this kind of acts or behavior. |
|
x |
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In line with its integrity and transparency
standards, Banco Macro has made available to its personnel, suppliers, investors, and third parties in general, a confidential
communication cannel known as Transparency Line.
This communication channel allows the reporting
of any possible irregularities, including without limitation, those regarding accounting, audit and internal control issues.
The reports may be sent in writing by generating
an electronic document through our Transparency Line available 24 x 7. In order to facilitate the analysis of the reports addressed
to the Transparence Line it is very important to describe all details regarding: what happened, who were the persons involved,
when, how and where such behavior or act took place.
The Audit Committee analyzes the reports
received through our Transparency Line, considering all the information furnished in such reports as strictly confidential to
the extent permitted by the applicable law. The reports are received and evaluated by the Bank’s personnel reporting to
the Committee. |
VIII.3 Issuers features policies, processes
and systems to manage and resolve the reports described in item VIII.2. Please describe the most relevant aspects thereof and indicate
the degree of involvement of the Audit Committee in such resolutions, particularly in those related to accounting reporting internal
control issues and to the behavior of the members of the Management Body and first-line managers.
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x |
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The Audit Committee has defined proceedings
to manage and resolve the reports received through the Bank’s Transparency Line.
The reports are entered through a link in the
Bank’s web site and subsequently registered in a system that returns the person entering such report a control number. This
number allows the person to follow up the situation or stage of the process.
The reports are evaluated by the personnel
supervised by the Audit Committee and managed on an independent basis; therefore, the Audit Committee is absolutely involved. |
PRINCIPLE IX: GO DEEPER INTO THE SCOPE OF THE CODE |
Recommendation IX: Encourage the incorporation good practices
of corporate governance provisions into the Bylaws.
Answer whether : |
The Management
Body evaluates if the provisions of the Code of Corporate Governance must be reflected, totally or partially, in Issuer’s
Bylaws, including the general and particular responsibilities of the Management Body. Indicate which provisions are actually included
in the Bylaws from the effective day of the Code up to the present day. |
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x |
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The general and special shareholders’ meeting held on April 21st 2009 resolved to incorporate section 23 bis into the bylaws. This section provides that the Board of Directors may create a Designations and Corporate Governance Committee. Within the scope of such section, on November 7th 2011 the Board resolved to create a Designations and Corporate Governance Committee effective as of January 1st 2012, as well as the Risk Management Committee, the Incentives Committee and the Ethics and Compliance Committee. |
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: April 17, 2015
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MACRO BANK INC. |
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By: |
/s/ Luis Cerolini |
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Name: Luis Cerolini |
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Title: Director |
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