Banco Macro Announces Results for the First Quarter of 2025

Rhea-AI Summary

Banco Macro (NYSE: BMA) reported its Q1 2025 financial results with notable declines in key metrics. The bank's net income reached Ps.45.7 billion, showing a significant 59% decrease from Q4 2024. Operating income before expenses totaled Ps.801 billion, dropping 9% QoQ and 68% YoY. The bank's total financing increased by 22% QoQ to Ps.7.7 trillion, while total deposits grew 5% QoQ to Ps.9.6 trillion. BMA maintained strong financial health with a Capital Adequacy Ratio of 34.3% and excess capital of Ps.3.2 trillion. The bank's asset quality remained solid with a non-performing ratio of 1.44% and coverage ratio of 163.34%. Banco Macro serves 6.23 million retail customers through 505 branches across Argentina.

Positive

• Total financing increased 22% QoQ to Ps.7.7 trillion and 97% YoY
• Strong capital position with Ps.3.2 trillion excess capital and 34.3% Capital Adequacy Ratio
• Healthy asset quality with low 1.44% non-performing ratio and 163.34% coverage ratio
• Total deposits grew 5% QoQ to Ps.9.6 trillion
• Solid liquidity with liquid assets at 68% of total deposits

Negative

• Net income declined 59% QoQ to Ps.45.7 billion
• Operating income before expenses decreased 68% YoY and 9% QoQ
• Operating income after expenses fell 82% YoY and 11% QoQ
• USD deposits decreased 17% in Q1 2025
• ROAE declined to 3.8% and ROAA to 1.2%

Insights

Banking Financial Analyst

Banco Macro's Q1 2025 shows concerning 59% profit decline amid mixed operational signals in Argentina's challenging economic landscape.

Banco Macro's Q1 2025 results reveal a significant profit deterioration, with net income falling to Ps.45.7 billion, down 59% from the previous quarter. This substantial decline has driven key performance metrics to concerning levels, with ROAE at just 3.8% and ROAA at 1.2%.

The bank's operational performance shows troubling trends. Operating income before expenses decreased 9% quarter-over-quarter to Ps.801 billion and plummeted 68% year-over-year. Even more concerning, operating income after expenses fell to Ps.347.8 billion, representing an 11% quarterly decline and a dramatic 82% year-over-year collapse.

Despite these profit challenges, BMA's balance sheet shows expansion with total financing increasing 22% QoQ to Ps.7.7 trillion, reflecting growth in both peso and dollar-denominated loans. The deposit base grew more modestly at 5% QoQ to Ps.9.6 trillion, with an interesting divergence between peso deposits (up 15%) and USD deposits (down 17%), suggesting potential currency preference shifts among Argentine depositors.

The bank maintains strong capital positions with Ps.3.2 trillion excess capital and impressive capital adequacy ratios of 34.3% (Basel III) and 33.6% (Tier 1). Liquidity remains robust at 68% of total deposits, while asset quality appears stable with a non-performing financing ratio of 1.44% and healthy coverage ratio of 163.34%.

The divergence between the bank's deteriorating profitability and its expanding balance sheet suggests Banco Macro is navigating Argentina's complex monetary environment by prioritizing balance sheet strength over short-term profits, potentially positioning for longer-term stability despite current earnings challenges.

BUENOS AIRES, Argentina, May 28, 2025 /PRNewswire/ -- Banco Macro S.A. (NYSE: BMA; BYMA: BMA) ("Banco Macro" or "BMA" or the "Bank") announced today its results for the first quarter ended March 31, 2025 ("1Q25").  All figures are in Argentine pesos (Ps.) and have been restated in terms of the measuring unit current at the end of the reporting period. For ease of comparison, figures of previous quarters of 2024 have been restated applying IAS 29 to reflect the accumulated effect of the inflation adjustment for each period through March 31, 2025.

Summary

• THE BANK'S NET INCOME totaled Ps.45.7 billion in 1Q25. This result was 59%  or Ps.65.3 billion lower than the result posted in 4Q24. In 1Q25, the annualized return on average equity ("ROAE") and the annualized return on average assets ("ROAA") were 3.8% and 1.2%, respectively.
  
  
• In 1Q25, OPERATING INCOME (before G&A and personnel expenses) totaled Ps.801 billion, 9% or Ps.82.6 billion lower than in 4Q24 and 68% or Ps.1.7 trillion lower than the same period of last year.
  
  
• In 1Q25, OPERATING INCOME (after G&A and personnel expenses) totaled Ps.347.8 billion, 11% or Ps.43 billion lower than in 4Q24 and 82% or Ps.1.6 trillion lower than the same period of last year.
  
  
• In 1Q25, BANCO MACRO'S TOTAL FINANCING increased 22% or Ps.1.4 trillion quarter over quarter ("QoQ") totaling Ps.7.7 trillion and increased 97% or Ps.3.8 trillion year over year ("YoY"). In 1Q25 both peso an USD financing increased 21% and 22% respectively.
  
  
• In 1Q25, BANCO MACRO'S TOTAL DEPOSITS increased 5% or Ps.485.4 billion QoQ and increased 23% or Ps.1.8 trillion YoY, totaling Ps.9.6 trillion and representing 82% of the Bank's total liabilities. Private sector deposits increased 4% or Ps.349.6 billion QoQ. In1Q25, Peso deposits increased 15% while USD deposits decreased, 17%.
  
  
• Banco Macro continued showing a strong solvency ratio, with an EXCESS CAPITAL of Ps.3.2 trillion, 34.3% Capital Adequacy Ratio – Basel III and 33.6% Tier 1 Ratio. In addition, the Bank's LIQUID ASSETS remained at an adequate level, reaching 68% of its total deposits in 1Q25.
  
  
• In 1Q25, the Bank's NON-PERFORMING TO TOTAL FINANCING RATIO was 1.44% and the COVERAGE RATIO reached 163.34%.
  
  
• As of 1Q25, through its 505 branches and 8,903 employees Banco Macro serves 6.23 million retail customers (2.6 million digital customers) across 23 of the 24 Provinces in Argentina and over 205,816 corporate customers.

1Q25 Earnings Release Conference Call

Thursday, May 29, 2025
Time: 11:00 a.m. Eastern Time | 12:00 p.m. Buenos Aires Time

To participate, please register here:

Banco Macro 1Q25 Earnings Call

IR Contacts in Buenos Aires:

Jorge Scarinci
Chief Financial Officer

Nicolás A. Torres
Investor Relations

Phone: (54 11) 5222 6682
E-mail: investorelations@macro.com.ar 

Visit our website at:
www.macro.com.ar/relaciones-inversores

View original content:https://www.prnewswire.com/news-releases/banco-macro-announces-results-for-the-first-quarter-of-2025-302467711.html

SOURCE Banco Macro S.A.

FAQ

What was Banco Macro's (BMA) net income in Q1 2025?

Banco Macro reported a net income of Ps.45.7 billion in Q1 2025, representing a 59% decrease from Q4 2024.

What is Banco Macro's (BMA) current Capital Adequacy Ratio?

Banco Macro maintained a strong Capital Adequacy Ratio of 34.3% (Basel III) with excess capital of Ps.3.2 trillion in Q1 2025.

How many customers does Banco Macro (BMA) serve in Argentina?

Banco Macro serves 6.23 million retail customers (including 2.6 million digital customers) and over 205,816 corporate customers through 505 branches across 23 Argentine provinces.

What was BMA's loan quality in Q1 2025?

Banco Macro maintained strong asset quality with a non-performing to total financing ratio of 1.44% and a coverage ratio of 163.34% in Q1 2025.

How much did Banco Macro's (BMA) deposits grow in Q1 2025?

Banco Macro's total deposits increased 5% quarter-over-quarter to Ps.9.6 trillion, with peso deposits growing 15% while USD deposits decreased 17%.