Banco Macro S.A. Q2 FY2025 earnings call

• Net income was driven by higher net interest income, net fee income, net income from financial assets/liabilities at fair value, and FX income, partially offset by lower other operating income, higher loan loss provisions, and income tax.
• Net operating income before general and administrative/personnel expenses was ARS 906.2 billion in Q2 2025, up 13% from Q1 2025.
• Provision for loan losses was ARS 103 billion, up 47% from Q1 2025.
• Loan growth: Total financials up 14% q-o-q, private sector loans up 13% q-o-q; peso financing up 13% q-o-q, dollar financing up 4% q-o-q.
• Deposit growth: Total deposits up 4% q-o-q, private sector deposits up 4% q-o-q.
• Efficiency ratio improved to 33.9% in Q2 2025 from 38.2% in Q1 2025 and 55.6% a year ago.

In the second quarter of 2025, Banco Macro's net income totaled ARS 149.5 billion, a 209% increase from the previous quarter. Net interest income was ARS 696.9 billion, up 14% quarter-on-quarter. Net fee income was ARS 108.4 billion, up 16% quarter-on-quarter. Net income from financial assets and liabilities at fair value through profit or loss was ARS 113.7 billion gain, up 61% from the first quarter. Other operating income was ARS 45.8 billion, down 37% quarter-on-quarter. Total financials reached ARS 9.24 trillion, up 14% quarter-on-quarter, with private sector loans up 13% quarter-on-quarter. Total deposits totaled ARS 10.62 trillion, up 4% quarter-on-quarter.

• ROE guidance: Maintaining range of 8%-10% for 2025 in real terms.
• Loan growth guidance: Maintaining 60% growth for 2025.
• Deposit growth guidance: Maintaining 30% growth for 2025.
• NIM outlook: Expected to be slightly lower in Q3 2025 due to volatility, reserve requirement increases, and auction compliance.
• NPL outlook: Forecasted to increase to 2.5%-3% of total loans by end of 2025.

• Volatility in interest rates and debt auctions could impact NIMs.
• High real interest rate environment may lead to deterioration in asset quality, with NPLs expected to increase.
• Changes in reserve requirements, influenced by political events like elections, can affect liquidity and funding costs.

Q: What could be the potential impact on NIMs and asset quality from recent interest rate volatility and debt auctions?

A: Third quarter NIM expected to be timidly below Q2 due to funding cost increase and reserve requirement changes; NPLs forecasted to increase to 2.5%-3% by end of 2025 due to high real interest rates.

Q: What are ROE expectations for the second half and full year?

A: Maintaining ROE range of 8%-10% for 2025.

Q: Estimate for Tier 1 ratio?

A: Forecasting Tier 1 ratio to end 2025 in the area of 28.75.

Q: Funding strategy and loan growth guidance?

A: Focus on growing deposits in pesos and dollars, maintaining 60% loan growth and 30% deposit growth guidance for 2025.

Q: Outlook on M&A activity?

A: Open to analyzing M&A opportunities if suitable price and conditions are met.

Q: Loan growth mix and NPLs?

A: Maintain universal bank approach, being conservative in lending requirements for both commercial and consumer loans, with NPLs expected to rise due to high real interest rates.