BMA — Banco Macro S.A.

Banco Macro Q3 2025 Earnings Call Summary

1. Key Financial Results and Metrics:

• Net Income: Loss of ARS 33.1 billion, down ARS 191.5 billion from Q2 2025, and 35% lower year-on-year.
• Total Comprehensive Income: Loss of ARS 28.4 billion for the quarter.
• ROE and ROA: Annualized ROE at 4.5% and ROA at 1.5%.
• Net Operating Income: ARS 779.6 billion, down 23% from Q2 2025 and 29% year-on-year.
• Loan Loss Provisions: ARS 156.8 billion, up 45% from Q2 2025 and 424% year-on-year.
• Net Interest Income: ARS 686.2 billion, down 7% from Q2 2025 and 8% year-on-year.
• Interest Margin: 18.7%, down from 23.5% in Q2 2025 and 31.5% in Q3 2024.
• Deposits: Total deposits increased 5% quarter-on-quarter to ARS 11.8 trillion.

2. Strategic Updates and Business Highlights:

• Loan Growth: Total financial reached ARS 10.1 trillion, up 3% quarter-on-quarter and 69% year-on-year. Private sector loans increased by 3% quarter-on-quarter.
• Market Share: 9% in private sector loans and 7.4% in private deposits as of September 2025.
• Asset Quality: Nonperforming loans ratio at 30.2%, with a coverage ratio of 120.87%.
• Capital Adequacy: Capital adequacy ratio at 29.9% with excess capital of ARS 3.3 trillion.
• Efficiency Ratio: Increased to 39.1%, deteriorating from 35.9% in Q2 2025.

3. Forward Guidance and Outlook:

• Loan Growth Forecast: Expected to grow 35% in real terms for 2026; deposits to grow 25% in real terms.
• ROE Expectations: Forecasted to be around 8% for 2025 and low teens for 2026.
• NIM Outlook: Anticipated to improve to around 20% in 2026, with net interest income growth expected to exceed loan growth.

4. Bad News, Challenges, or Points of Concern:

• Increased Provisions: Significant rise in loan loss provisions due to higher delinquency rates, which were unexpected.
• Deteriorating Asset Quality: Nonperforming loans increased, particularly in consumer lending.
• Margin Compression: Affected by rising interest expenses and volatility in interest rates.
• Administrative Expenses: Increased due to unexpected costs related to early retirement plans.
• Foreign Exchange Losses: Notable losses in foreign exchange positions, although mitigated by gains in derivatives.

5. Notable Q&A Insights:

• Management Acknowledgment of Losses: CFO Jorge Scarinci noted that the losses were due to a combination of higher provisions, unexpected expenses, and margin compression.
• Peak NPLs Expected: Management anticipates that nonperforming loans will peak between October and November 2025.
• Future M&A Activity: The bank is exploring potential M&A opportunities, with expectations for developments in the next 12 to 18 months.
• Market Conditions: Positive sentiment post-elections may improve liquidity conditions and deposit growth in 2026.
• Concerns on Capital Allocation: Discussions on potential buybacks were deferred due to stock price increases following the elections.

This summary encapsulates Banco Macro's financial performance, strategic direction, and outlook, while highlighting challenges and management's responses during the earnings call.