Banco Macro SA (BUE:BMA) Q3 2024 Earnings Call Highlights: Record Net Income and Robust Loan ...

In This Article:

  • Net Income: ARS91.3 billion, 293% higher than Q3 2023.

  • Return on Average Equity: 6.8% annualized.

  • Return on Average Assets: 2.1% annualized.

  • Operating Income: ARS829.2 billion, 61% higher than Q2 2024.

  • Net Operating Income: ARS403.7 billion, 263% higher than Q2 2024.

  • Net Interest Income: ARS569.1 billion, 167% higher than Q2 2024.

  • Interest Income: ARS857.6 billion, 23% higher than Q2 2024.

  • Interest Expense: ARS288.4 billion, 40% higher than Q2 2024.

  • Net Interest Margin: 31.5%, higher than 20% in Q2 2024.

  • Net Fee Income: ARS117.8 billion, 8% higher than Q2 2024.

  • Administrative Expenses: ARS251.9 billion, 11% higher than Q2 2024.

  • Efficiency Ratio: 25.5%, deteriorated from 22.2% in Q2 2024.

  • Loan Growth: Total financing reached ARS4.55 trillion, 17% higher than Q2 2024.

  • Total Deposits: ARS8.1 trillion, 7% higher than Q2 2024.

  • Nonperforming Loan Ratio: 1.15%.

  • Capital Adequacy Ratio: 32.8%.

  • Tier 1 Ratio: 31.3%.

  • Liquidity Ratio: Liquid assets to total deposit ratio at 91%.

Release Date: December 02, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • Banco Macro SA (BUE:BMA) reported a significant increase in net income for the third quarter of 2024, totaling ARS91.3 billion, which is 293% higher than the same period in 2023.

  • The bank's net interest income saw a substantial rise, increasing by 167% quarter-on-quarter and 63% year-on-year, driven by higher interest income and reduced interest expenses.

  • Loan growth was robust, with total financing reaching ARS4.55 trillion, marking a 17% increase quarter-on-quarter and a 28% increase year-on-year.

  • Banco Macro SA (BUE:BMA) maintained a strong capital position with an excess capital of ARS2.53 trillion, representing a capital adequacy ratio of 32.8%.

  • The bank's asset quality remained stable, with a nonperforming loan ratio of 1.15% and a coverage ratio of 177.6%.

Negative Points

  • Banco Macro SA (BUE:BMA) experienced a ARS50 billion loss related to the exercise of put options on inflation-adjusted securities.

  • Provision for loan losses increased by 24% quarter-on-quarter and 53% year-on-year, indicating rising credit risk.

  • Interest income from loans decreased by 28% year-on-year, primarily due to a decrease in the average lending rate.

  • The bank's efficiency ratio deteriorated to 25.5% from 22.2% in the previous quarter, indicating higher administrative and personnel expenses.

  • FX income saw a significant decline, with a 43% decrease quarter-on-quarter and a 98% decrease year-on-year, impacted by peso depreciation against the US dollar.