Banco Macro SA Q1 FY2025 earnings call

• Net income in 1Q '25 was ARS45.7 billion, 59% lower than 4Q '24 due to factors like lower net income from financial assets/liabilities at fair value and bigger loss from net monetary position. - Net operating income before general and administrative expenses was ARS801 billion, 9% lower than 4Q '24. - Provision for loan losses was ARS66 billion, 62% higher than 4Q '24. - Net interest income was ARS579.2 billion, ARS1 billion higher than 4Q '24. - Fee income was ARS169.8 billion, 1% lower than 4Q '24. - Other operating income was ARS68.5 billion, 29% higher than 4Q '24. - Administrative expenses plus employee benefits totaled ARS257 billion, 10% lower than previous quarter. - Loan growth: Total financing ARS7.7 trillion, up 22% QoQ; private sector loans up 22% QoQ. - Deposit growth: Total deposits ARS9.6 trillion, up 5% QoQ; private sector deposits up 4% QoQ.

In the first quarter of 2025, Banco Macro's net income totaled ARS45.7 billion. Net interest income was ARS579.2 billion, ARS1 billion higher than the fourth quarter of 2024. Fee income totaled ARS169.8 billion, 1% lower than the fourth quarter of 2024. Other operating income was ARS68.5 billion, 29% higher than the fourth quarter of 2024. Provision for loan losses totaled ARS66 billion, 62% higher than the fourth quarter of 2024. Total financing reached ARS7.7 trillion, increasing 22% quarter-on-quarter. Total deposits increased 5% quarter-on-quarter to ARS9.6 trillion. Private sector loans increased 22% quarter-on-quarter, and private sector deposits increased 4% quarter-on-quarter.

• Loan growth: Keep 60% real growth in 2025. - Deposit growth: Revised to 45% real growth. - Capital ratio: Expected to be in the area of 28%-29% by end of 2025. - ROE: Downgraded to 8%-10% for 2025, considering ordinary bond price evolution but could be slightly higher if prices improve.

Q: Quick update on guidance, including loan growth, deposit growth, capital ratio, and ROE.

A: Loan growth to maintain 60% real in 2025; deposit growth revised to 45% real; capital ratio expected 28%-29% by end 2025; ROE downgraded to 8%-10% for 2025.

Q: Follow up on deposit growth, driven by?

A: First quarter volume growth in loans and deposits, with dollar deposit growth stronger than expected.

Q: Macro expectations on interest rates, inflation, GDP growth, FX?

A: GDP growth expected 5% in 2025 and 3% in 2026; inflation expected 30% area in 2025 and 22% area in 2026; interest rates expected to decline; FX with peso depreciation.

Q: OpEx growth in 2025?

A: OpEx expected to move close to inflation rate.

Q: Loan to deposit ratio evolution?

A: Expected to be in 90s by end 2025.

Q: Bond portfolio positioning?

A: Working on permutative changes, wanting available for sale level of ARS1 billion with different bonds to trim public sector exposure for loan growth, with high exposure to inflation linkers.