Banco Macro Announces Results for the First Quarter of 2021

Rhea-AI Summary

Banco Macro S.A. (NYSE: BMA) reported a net income of Ps.2.2 billion for 1Q21, marking a 39% decline from 4Q20 and a 77% decrease year-over-year. The annualized ROAE was 5.4% and ROAA was 1.1%. Operating income rose 16% QoQ to Ps.18.9 billion, but dropped 19% YoY. Private sector financing fell 9% QoQ and 17% YoY, while total deposits decreased 17% QoQ. Despite challenges, the bank maintained a strong solvency ratio with Ps.157.4 billion in excess capital. The efficiency ratio improved to 35.7%.

Positive

• Operating income increased 16% QoQ to Ps.18.9 billion
• Efficiency ratio improved to 35.7% from 38.8% in 4Q20
• Strong solvency ratio with Ps.157.4 billion in excess capital
• Liquid assets at an adequate level, reaching 94% of total deposits

Negative

• Net income declined 39% from 4Q20 and 77% YoY
• Private sector financing decreased 9% QoQ and 17% YoY
• Total deposits dropped 17% QoQ

BUENOS AIRES, Argentina, May 27, 2021 /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, 2021 ("1Q21").  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. As of 1Q20, the Bank began reporting results applying Hyperinflation Accounting, in accordance with IFRS IAS 29 as established by the Central Bank. For ease of comparison, figures of previous quarters of 2020 have been restated applying IAS 29 to reflect the accumulated effect of the inflation adjustment for each period through March 31, 2021.

Summary

• The Bank's net income totaled Ps.2.2 billion in 1Q21. This result was 39% lower than the result posted in 4Q20 and 77% lower than in 4Q19. In 1Q21, the annualized return on average equity ("ROAE") and the annualized return on average assets ("ROAA") were 5.4% and 1.1%, respectively.
• Operating income (after G&A and personnel expenses) was Ps.18.9 billion in 1Q21, 16% or Ps.2.6 billion higher than in 4Q20 and 19% or Ps.4.5 billion lower than a year ago.
• In 1Q21, Banco Macro's financing to the private sector decreased 9% or Ps.25.8 billion quarter over quarter ("QoQ") totaling Ps.259.4 billion and 17% or Ps.54.1. billion year over year ("YoY").
• In 1Q21, Banco Macro's total deposits decreased 17% or Ps.94.8 billion QoQ, totaling Ps.457.3 billion and representing 77% of the Bank's total liabilities. Private sector deposits decrased 14% or Ps.66.9 billion QoQ.
• Banco Macro continued showing a strong solvency ratio, with an excess capital of Ps.157.4 billion, 37.7% regulatory capital ratio – Basel III and 30.3% Tier 1 Ratio. In addition, the Bank's liquid assets remained at an adequate level, reaching 94% of its total deposits in 1Q21.
• In 1Q21, the efficiency ratio reached 35.7%, improving from the 38.8% posted in 4Q20 and higher than the 31.1% posted a year ago.
• In 1Q21, the Bank's non-performing to total financing ratio was 0.92% and the coverage ratio reached 387.82%.

1Q21 Earnings Release Conference Call
Friday, May 28, 2021 Time: 11:00 a.m. Eastern Time | 12:00 p.m. Buenos Aires Time
To participate, please dial:
Argentina Toll Free:
(011) 3984 5677
Participants Dial In (Toll Free):	Webcast Replay:  click here
+1 (844) 450 3847
Participants International Dial In:	Available from 05/28/2021 through 06/11/2021
+1 (412) 317 6370
Conference ID: Banco Macro
Webcast: click here

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:http://www.prnewswire.com/news-releases/banco-macro-announces-results-for-the-first-quarter-of-2021-301301351.html

SOURCE Banco Macro S.A.

FAQ

What is Banco Macro's net income for 1Q21?

Banco Macro's net income for 1Q21 totaled Ps.2.2 billion.

How did Banco Macro perform in terms of deposits in 1Q21?

In 1Q21, Banco Macro's total deposits decreased by 17% or Ps.94.8 billion QoQ.

What is the return on equity for Banco Macro in 1Q21?

The annualized return on average equity (ROAE) for Banco Macro in 1Q21 was 5.4%.

What challenges did Banco Macro face in 1Q21?

Banco Macro faced a decline in net income, private sector financing, and total deposits in 1Q21.

What was Banco Macro's efficiency ratio in 1Q21?

The efficiency ratio for Banco Macro in 1Q21 improved to 35.7%.