Banco Macro Q1 2026 Earnings Call Summary

1Key Financial Results and Metrics

Net Income: ARS 139.8 billion, up 28% quarter-over-quarter and 131% year-over-year.

Annualized Return on Equity (ROE): 10% (10.9% excluding restructuring expenses).

Annualized Return on Assets (ROA): 2.4% (2.6% excluding restructuring expenses).

Operating Income: ARS 1.23 trillion, down 3% from Q4 2025 but up 16% year-over-year.

Net Interest Income: ARS 975.2 billion, up 7% quarter-over-quarter and 27% year-over-year.

Net Interest Margin: 25.3%, up from 21.7% in Q4 2025.

Administrative Expenses: ARS 349.8 billion, down 22% quarter-over-quarter.

Non-Performing Loans (NPL) Ratio: 5.4%, an increase from 4.73% in Q4 2025.

Coverage Ratio: 109.79% for NPLs, indicating a conservative provisioning approach.

2Strategic Updates and Business Highlights

The bank successfully reduced its branch network by 24 branches and headcount by 3%.

A strategic focus on maintaining a short position in U.S. dollars contributed to net gains.

Continued emphasis on improving efficiency and optimizing the deposit base.

The bank is preparing for the integration of Banco S enz into its digital ecosystem, with expected operational readiness by Q1 2027, pending regulatory approval.

3Forward Guidance and Outlook

Loan Growth Guidance: Maintaining a nominal growth target of 42% for the year, with a focus on both peso and dollar loans.

Deposit Growth Guidance: Targeting a nominal growth of 34% for the year.

Cost of Risk: Expected to stabilize, with indications of a peak in asset quality deterioration.

The bank is optimistic about improving economic conditions in Argentina, which may positively impact loan demand and delinquency rates.

4Bad News, Challenges, or Points of Concern

The NPL ratio deteriorated, indicating challenges in asset quality, particularly in the consumer portfolio.

Total financing decreased by 9% quarter-over-quarter, reflecting a contraction in both peso and U.S. dollar financing.

A decline in transactional deposits, which dropped to 41% of total private deposits from 48% a year ago, raises concerns about the bank's funding structure.

Inflationary pressures remain a concern, with inflation recorded at 9.44%, impacting overall economic conditions.

5Notable Q&A Insights

Management confirmed they are maintaining previous guidance for loan and deposit growth despite recent quarterly declines.

There are signs of stabilization in asset quality, with improvements noted in consumer loan performance in recent months.

The bank's conservative approach to provisioning and recalibration of risk models sets it apart from peers, with a higher coverage ratio.

The management expressed cautious optimism about the economic recovery in Argentina, which may lead to improved loan demand and reduced delinquency rates in the future. This summary encapsulates Banco Macro's financial performance, strategic initiatives, and outlook while highlighting both strengths and challenges faced in the current economic environment.