Banco Macro Announces Results for the Second Quarter of 2020

Rhea-AI Summary

Banco Macro S.A. (NYSE: BMA) reported its 2Q20 results, showing a net income of Ps.6.4 billion, a 14% decrease from 1Q20 but a 111% increase from 2Q19. The bank's financing to the private sector fell 5% QoQ, while total deposits rose 24% QoQ, totaling Ps.406 billion. The solvency ratio remains strong with excess capital of Ps.101.8 billion. However, the efficiency ratio worsened to 41.6% from 39.8% in 1Q20, and the non-performing loans ratio was 1.52%, although the coverage ratio improved to 210%.

Positive

• Net income increased by 111% YoY.
• Total deposits rose 24% QoQ, reflecting strong liquidity.
• Solvency ratio remains strong with excess capital of Ps.101.8 billion.
• Improved coverage ratio for non-performing loans at 210%.

Negative

• Net income decreased by 14% QoQ.
• Financing to the private sector decreased by 5% QoQ and 12% YoY.
• Efficiency ratio deteriorated to 41.6% from 39.8% in 1Q20.

BUENOS AIRES, Aug. 31, 2020 /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 June 30, 2020 ("2Q20").  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 2019 have been restated applying IAS 29 to reflect the accumulated effect of the inflation adjustment for each period through June 30, 2020.

Summary

• The Bank's net income totaled Ps.6.4 billion in 2Q20. This result was 14% lower than the result posted in 1Q20 and 111% higher than in 2Q19. In 2Q20, the accumulated annualized return on average equity ("ROAE") and the accumulated annualized return on average assets ("ROAA") were 23% and 5.2%, respectively.
• In 2Q20, Banco Macro's financing to the private sector decreased 5% or Ps.12.2 billion quarter over quarter ("QoQ") totaling Ps.219.4 billion and 12% or Ps.30.4 billion year over year ("YoY"). In the quarter commercial loans stand out, among which Others stand out; with a 58% increase QoQ, mainly driven by the 24% loans to SMEs.
• In 2Q20, Banco Macro's total deposits increased 24% or Ps.78 billion QoQ, totaling Ps.406 billion and representing 80% of the Bank's total liabilities. Private sector deposits increased 16% or Ps.47 billion QoQ.
• Banco Macro continued showing a strong solvency ratio, with an excess capital of Ps.101.8 billion, 32.1% regulatory capital ratio – Basel III and 25% Tier 1 Ratio. In addition, the Bank's liquid assets remained at an adequate level, reaching 54% of its total deposits in 2Q20.
• As of 2Q20, the accumulated efficiency ratio reached 41.6%, deteriorating from the 39.8% posted in 1Q20.
• In 2Q20, the Bank's non-performing to total financing ratio was 1.52% and the coverage ratio improved to 210%.

2Q20 Earnings Release Conference Call

Tuesday, September 1, 2020
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): +1 (844) 450 3847
Participants International Dial In: +1 (412) 317 6370

Conference ID: Banco Macro
Webcast: click here

Webcast Replay:  click here
Available from 09/01/2020 through 09/15/2020

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-second-quarter-of-2020-301121356.html

SOURCE Banco Macro S.A.

FAQ

What were Banco Macro's net income results for 2Q20?

Banco Macro's net income for 2Q20 was Ps.6.4 billion, 14% lower than 1Q20.

How did private sector financing change in 2Q20?

Private sector financing decreased by 5% QoQ and 12% YoY, totaling Ps.219.4 billion.

What was the total deposit amount for Banco Macro in 2Q20?

Total deposits for Banco Macro increased to Ps.406 billion, a 24% increase QoQ.

What is Banco Macro's solvency ratio as of 2Q20?

Banco Macro's solvency ratio stands at 32.1% with excess capital of Ps.101.8 billion.

What is the non-performing loan ratio for Banco Macro in 2Q20?

The non-performing loan ratio for Banco Macro was 1.52% in 2Q20.