Banco Macro S.A. (BMA) Q3 2025 Earnings Call Transcript
Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
Overview
The earnings call summary reveals several concerns: a rise in nonperforming loans, unexpected expenses, and poor bond portfolio performance. Despite optimistic loan and deposit growth forecasts, the Q&A section highlighted uncertainties, such as unclear management responses and no immediate buyback plans. The market may react negatively to the weak financial results, increased costs, and cautious outlook on returns. Given the mid-cap status of the company, these factors are likely to result in a stock price decrease of -2% to -8% over the next two weeks.
Key Financial Performance
Net Income Banco Macro's net income totaled ARS 33.1 billion loss in Q3 2025, ARS 191.5 billion lower than the previous quarter. This was due to higher loan loss provisions, higher administrative expenses, lower income from government and private securities, and lower net fee income, partially offset by higher other operating income and a lower loss related to the net monetary position.
Total Comprehensive Income Total comprehensive income for Q3 2025 was ARS 28.4 billion loss. For the first 9 months of 2025, net income was ARS 176.7 billion, 35% lower than the same period last year, when it was ARS 186.9 billion. The decline was attributed to the same factors affecting net income.
Net Operating Income Net operating income before general and administrative and personnel expenses was ARS 779.6 billion in Q3 2025, 23% or ARS 233.7 billion lower compared to Q2 2025 due to lower income from government securities. Year-over-year, it decreased 29% or ARS 312.9 billion.
Provision for Loan Losses Provision for loan losses totaled ARS 156.8 billion in Q3 2025, 45% or ARS 49.4 billion higher than Q2 2025. Year-over-year, it increased 424% or ARS 128.4 billion.
Net Interest Income Net interest income was ARS 686.2 billion in Q3 2025, 7% or ARS 52.2 billion lower than Q2 2025 and 8% or ARS 63.6 billion lower year-over-year. This was due to a ARS 113.9 billion increase in interest expense, while interest income increased ARS 61.6 billion.
Interest Income Interest income totaled ARS 1.32 trillion in Q3 2025, 5% or ARS 61.6 billion higher than Q2 2025 and 7% or ARS 84.7 billion higher year-over-year. Income from interest on loans increased 74% or ARS 396.2 billion year-over-year, driven by an 11% increase in private sector loans and a 111 basis point increase in the average lending rate.
Income from Government and Private Securities Income from government and private securities decreased 24% or ARS 85.4 billion quarter-over-quarter and 52% or ARS 292.8 billion year-over-year in Q3 2025. This was mainly due to inflation-adjusted bonds.
FX Income FX income was ARS 13.8 billion loss in Q3 2025, ARS 37.5 billion lower than Q2 2025, mainly due to losses from foreign currency exchange. Year-over-year, FX income decreased 164% or ARS 35.2 billion.
Interest Expense Interest expense totaled ARS 528.4 billion in Q3 2025, increasing 27% or ARS 113.9 billion quarter-over-quarter and 39% or ARS 148.4 billion year-over-year. Interest on deposits represented 94% of total interest expense, increasing 24% or ARS 96.6 billion quarter-over-quarter and 36% or ARS 131.3 billion year-over-year.
Net Fee Income Net fee income was ARS 177.3 billion in Q3 2025, 7% or ARS 13.9 billion lower than Q2 2025. Year-over-year, it increased 14% or ARS 22.1 billion.
Net Income from Financial Assets and Liabilities Net income from financial assets and liabilities at fair value to profit or loss was ARS 19.5 billion gain in Q3 2025, decreasing 84% or ARS 101 billion quarter-over-quarter and 86% or ARS 117 billion year-over-year.
Other Operating Income Other operating income totaled ARS 69 billion in Q3 2025, 42% or ARS 20.5 billion higher than Q2 2025 due to higher credit and debit card income. Year-over-year, it increased 16% or ARS 9.7 billion.
Administrative Expenses and Employee Benefits Administrative expenses plus employee benefits totaled ARS 331.5 billion in Q3 2025, 12% or ARS 35.1 billion higher than Q2 2025 due to a 20% increase in employee benefits. Year-over-year, these expenses decreased ARS 431 million.
Efficiency Ratio The efficiency ratio was 39.1% in Q3 2025, deteriorating from 35.9% in Q2 2025 and 25.5% a year ago. This was due to a 10% increase in expenses and a 19% decrease in income.
Net Monetary Position The result from the net monetary position was ARS 203.1 billion loss in Q3 2025, 6% or ARS 13 billion lower than Q2 2025 and 46% or ARS 171 billion lower year-over-year. This was due to lower inflation during the quarter.
Loan Growth Total financial loans reached ARS 10.1 trillion in Q3 2025, increasing 3% or ARS 332.4 billion quarter-over-quarter and 69% or ARS 4.1 trillion year-over-year. Private sector loans increased 3% or ARS 278.2 billion quarter-over-quarter and 67% or ARS 3.94 trillion year-over-year.
Deposits Total deposits increased 5% or ARS 556.4 billion quarter-over-quarter, totaling ARS 11.8 trillion in Q3 2025, and increased 11% or ARS 1.2 trillion year-over-year. Private sector deposits increased 6% or ARS 604.9 billion quarter-over-quarter.
Asset Quality The nonperforming total finance ratio was 30.2% in Q3 2025. Consumer portfolio nonperforming loans increased to 4.3% from 2.81% in the previous quarter, while commercial portfolio nonperforming loans increased to 0.85% from 0.52%.
Capitalization Banco Macro had an excess capital of ARS 3.3 trillion in Q3 2025, representing a capital adequacy ratio of 29.9% and a Tier 1 ratio of 29.2%.
You have reached the limit. Sign up to access full content
Get started
Operating Highlights
Loan Growth: The bank's total financial reached ARS 10.1 trillion, increasing 3% quarter-on-quarter and 69% year-on-year. Private sector loans increased 3% quarter-on-quarter and 67% year-on-year. Commercial loans saw growth in documents and others, while overdrafts decreased. Consumer lending increased across most product lines except for credit card loans.
Deposit Growth: Total deposits increased 5% quarter-on-quarter and 11% year-on-year, totaling ARS 11.8 trillion. Private sector deposits increased 6% quarter-on-quarter, while public sector deposits decreased 5%. Demand deposits led the increase in private sector deposits.
Net Income: Banco Macro reported a net income loss of ARS 33.1 billion in Q3 2025, ARS 191.5 billion lower than the previous quarter. This was due to higher loan loss provisions, administrative expenses, and lower income from securities and fees.
Interest Income and Expense: Interest income totaled ARS 1.32 trillion, up 5% quarter-on-quarter and 7% year-on-year. Interest expense increased 27% quarter-on-quarter and 39% year-on-year, driven by higher rates on deposits.
Efficiency Ratio: The efficiency ratio deteriorated to 39.1% in Q3 2025 from 35.9% in the previous quarter and 25.5% a year ago. Expenses increased 10%, while income decreased 19% quarter-on-quarter.
Capitalization and Liquidity: Banco Macro maintained a strong capital position with an excess capital of ARS 3.3 trillion, a capital adequacy ratio of 29.9%, and a Tier 1 ratio of 29.2%. Liquidity remained robust with a liquid assets to total deposit ratio of 67%.
You have reached the limit. Sign up to access full content
Get started
Risk or Challenges
Net Income Loss: Banco Macro reported a net income loss of ARS 33.1 billion in Q3 2025, which is ARS 191.5 billion lower than the previous quarter. This was driven by higher loan loss provisions, increased administrative expenses, and lower income from government and private securities.
Loan Loss Provisions: Loan loss provisions increased by 45% quarter-on-quarter and 424% year-on-year, indicating a significant deterioration in asset quality and potential credit risk.
Net Interest Margin: The net interest margin, including FX, dropped to 18.7% in Q3 2025 from 23.5% in the previous quarter and 31.5% a year ago, reflecting declining profitability in core lending activities.
Nonperforming Loans (NPLs): The nonperforming total finance ratio reached 30.2%, with consumer portfolio NPLs deteriorating to 4.3% from 2.81% in the previous quarter, signaling worsening credit quality.
FX Income Loss: The bank reported an FX income loss of ARS 13.8 billion, primarily due to losses from foreign currency exchange, exacerbated by the depreciation of the Argentine peso.
Administrative Expenses: Administrative expenses, including employee benefits, increased by 12% quarter-on-quarter, driven by higher compensation and provisions for early retirement and severance payments, impacting cost efficiency.
Income from Government and Private Securities: Income from government and private securities decreased by 24% quarter-on-quarter and 52% year-on-year, reflecting reduced returns from these investments.
Efficiency Ratio: The efficiency ratio deteriorated to 39.1% in Q3 2025 from 35.9% in the previous quarter and 25.5% a year ago, indicating declining operational efficiency.
Inflation and Monetary Loss: The result from the net monetary position was a loss of ARS 203.1 billion, reflecting the impact of high inflation and monetary adjustments on the bank's financials.
You have reached the limit. Sign up to access full content
Get started
Guidance & Outlook
Loan Growth: The bank's total financial reached ARS 10.1 trillion, increasing 3% or ARS 332.4 billion quarter-on-quarter and increasing 69% of ARS 4.1 trillion year-on-year. In the third quarter of 2025, private sector loans increased 3% or ARS 278.2 billion, and on a yearly basis, private sector loans increased 67% of ARS 3.94 trillion. Within commercial loans, documents and others stand out with a 4% or ARS 60.4 billion and a 27% or ARS 453.9 billion, respectively. Meanwhile, overdrafts decreased 21% or ARS 364.9 billion. Within consumer lending, almost all product lines increased during the third quarter of 2025, except for credit card loans, which decreased 1% or ARS 21.3 billion. Personal loans, mortgage loans and pledged loans stand out with an 8% or ARS 156.8 billion, 12% or ARS 92.8 billion, 6% or ARS 13.1 billion increase, respectively. In the third quarter of 2025, peso financing decreased 2% or ARS 192.1 billion, while U.S. dollar financing increased 10% or $170 million. It is important to mention that Banco Macro's market share over private sector loans as of September 2025 reached 9%.
Funding and Deposits: Total deposits increased 5% or ARS 556.4 billion quarter-on-quarter, totaling ARS 11.8 trillion and increase 11% of ARS 1.2 trillion year-on-year. Private sector deposits increased 6% or ARS 604.9 billion quarter-on-quarter, while public sector deposits decreased 5% or ARS 49.6 billion quarter-on-quarter. The increase in private sector deposits was led by demand deposits, which increased 10% or ARS 475.2 billion, while time deposits increased 4% or ARS 202.2 billion quarter-on-quarter. Peso deposits decreased 1% or ARS 48 billion, while U.S. dollar deposits increased 3% or $95 million. As of September 2025, Banco Macro's transactional accounts represented approximately 49% of total deposits. Banco Macro's market share over private deposits as of September 2025 totaled 7.4%.
Asset Quality: Banco Macro's nonperforming total finance ratio reached 30.2%. The coverage ratio, measured as total allowances under expected credit losses over nonperforming loans under Central Bank rules reached 120.87%. Consumer portfolio nonperforming loans deteriorated 149 basis points, up to 4.3% from 2.81% in the previous quarter while commercial portfolio nonperforming loans deteriorated 33 basis points in the third quarter of 2025, up to 0.85% from 0.52% in the previous quarter.
Capitalization: Banco Macro accounted an excess capital of ARS 3.3 trillion, which represented a capital adequacy ratio of 29.9% and a Tier 1 ratio of 29.2%. The bank's aim is to make the best use of this excess capital. The bank's liquidity remained more than appropriate. Liquid assets to total deposit ratio reached 67%.
Forward-Looking Statements: Any comments we may make today may include forward-looking statements, which are subject to various conditions, and these are outlined in our 20-F, which was filed to the SEC, and it's available at our website.
You have reached the limit. Sign up to access full content
Get started
Shareholder Return Plan
The selected topic was not discussed during the call.
You have reached the limit. Sign up to access full content
Get started
Key Q&A
Q:Why were the results worse than anticipated, and were there any special charges or unexpected expenses?
A:The results were worse due to a combination of factors: higher-than-expected provisions for delinquency rates, additional unexpected expenses (e.g., early retirement plans), compression on margins due to fluctuating interest rates, and poor bond portfolio performance.
Q:What are the expectations for loan growth and returns for next year?
A:Loan growth is forecasted at 35% in real terms, deposit growth at 25% in real terms, and ROE for 2026 is expected to be in the low teens.
Q:Can you provide more details about the extra expenses?
A:The extra expenses were primarily related to early retirement plans, which were unexpected but occurred during the quarter.
Q:When do you expect the peak in NPLs and cost of risk, and what are the forecasts for next year?
A:The peak in NPLs is expected between October and November. Cost of risk was 6.5% in Q3 and is expected to remain similar in Q4, with a forecast of around 5% in 2026.
Q:What is the expected ROE for 2025?
A:The expected ROE for 2025 is around 8%.
Q:What are the plans for capital ratio and potential M&A opportunities?
A:The company is exploring M&A opportunities and expects potential activity within the next 12 to 18 months, depending on suitable targets.
Q:Where will the company focus its growth, and what is the expected loan book composition by 2026?
A:Growth will focus on both commercial and consumer sectors due to low loan-to-GDP penetration in Argentina. The loan book composition is expected to shift slightly from 65% consumer and 35% commercial to 60% consumer and 40% commercial by 2026.
Q:Will there be further buyback activity given current stock levels?
A:No further buyback activity is planned at the moment due to high stock prices following the midterm elections.
Q:What are the expectations for NIMs and NII growth in 2026?
A:NIMs are expected to be around 20% in 2026, slightly below the current average of 21.6%. NII is expected to grow slightly above the 35% real loan growth forecast.
Q:What measures have been taken to control NPLs, and what are the expected levels going forward?
A:Measures include more restrictive credit lines for consumers. NPLs are expected to stabilize and peak in Q4, with cost of risk around 5% in 2026. Past due loan ratios may stabilize in the mid-2% range due to loan book growth.
Q:What were the additional expenses related to early retirement plans, and will they recur in Q4?
A:The additional expenses were ARS 23.5 million, with 18.5% being nonrecurring. It is uncertain if similar expenses will recur in Q4.
Q:Will the bond portfolio losses reverse in Q4?
A:Yes, the bond portfolio is expected to perform better in Q4 compared to the significant losses in Q3.
Q:What factors will drive deposit growth in 2026, and how are liquidity conditions post-elections?
A:Deposit growth is expected to be 25% in real terms, driven by positive real interest rates. Liquidity conditions are strong, with high liquidity ratios in both dollars and pesos.
Q:What gives confidence that NPLs will peak in Q4, and what are the long-term margin expectations?
A:Stabilization in new vintages and improved portfolio behavior suggest NPLs will peak in Q4. Long-term NIMs are expected to decline to mid-teens by 2027 and low 10s by 2028.
Q:What are the plans for the $400 million bond maturing in 2026?
A:The company is considering various options, including cancellation, rolling over, or issuing a new senior bond, depending on market conditions and growth plans.
Q:How will the company achieve the 8% ROE target for 2025?
A:The company expects recovery in the bond portfolio, increased loan volumes, and improved NIMs to achieve the 8% ROE target.
Q:What caused the ARS 28 billion loss on foreign exchange?
A:The loss was due to a combination of being sold in spot FX and the increase in FX impacting the position. However, gains in futures resulted in a net positive income of ARS 9.5 billion.
Q:Review of Unclear Management Responses
A:Management avoided providing a direct answer to the question about the average age of the workforce, stating they would need to check with Human Resources and follow up later.
You have reached the limit. Sign up to access full content
Get started
Earnings Word Cloud
The most frequently occurring keywords in this quarter's earning call
Bank ease
Conference comment
Instructions pleasure
Mr IR
Mr conference
Wednesday website
accounting accordance
bank result
conference sir
hyperinflation accounting
period bank
release Wednesday
result hyperinflation
sir Banco
term unit
wwwmacrocomarrelacionesinversores Instructions
BMA Transcript
Banco Macro S.A. (BMA) Q1 2026 Earnings Call Transcript
Unknown5-29
The earnings call lacks specific financial figures and operational updates, making it difficult to gauge performance. The hyperinflationary environment poses a risk, but without clear negative or positive indicators, the sentiment remains neutral. The market cap suggests limited drastic movement.
Banco Macro S.A. (BMA) Q4 2025 Earnings Call Transcript
Positive3-2
The earnings call reflects strong financial metrics, including a significant increase in loan growth and deposits, and an improvement in the commercial portfolio's NPL ratio. The Q&A highlights optimistic guidance on loan growth and sectors being financed, as well as a strategic acquisition. Despite some concerns about consumer portfolio deterioration and unclear management responses, the overall sentiment is positive. The bank's capital adequacy and proposed 100% dividend payout also contribute positively. Given the market cap, the stock is likely to see a positive reaction in the range of 2% to 8%.
Banco Macro S.A. (BMA) Q3 2025 Earnings Call Transcript
Unknown12-1
The earnings call summary reveals several concerns: a rise in nonperforming loans, unexpected expenses, and poor bond portfolio performance. Despite optimistic loan and deposit growth forecasts, the Q&A section highlighted uncertainties, such as unclear management responses and no immediate buyback plans. The market may react negatively to the weak financial results, increased costs, and cautious outlook on returns. Given the mid-cap status of the company, these factors are likely to result in a stock price decrease of -2% to -8% over the next two weeks.
Banco Macro S.A. (BMA) Q2 2025 Earnings Call Transcript
Unknown8-28
The earnings call highlights mixed signals: while there is strong loan growth and a robust capital position, the decrease in net income and rising non-performing loans, coupled with management's cautious outlook on NIMs and asset quality, balance out the positives. The Q&A reveals concerns about volatility and rising interest rates, which could pressure margins and asset quality. However, optimistic loan and deposit growth guidance provide a counterbalance. Given the market cap of $3.7 billion, the stock is likely to see a neutral movement in the next two weeks.
BMA Report
Frequently Asked Questions
Where does this earnings call transcript come from?
All transcripts are sourced directly from the official live webcast or the company’s official investor relations website. We use the exact words spoken during the call with no paraphrasing of the core discussion.
How soon is the transcript available after the earnings call ends?
Full verbatim transcripts are typically published within 4–12 hours after the call ends. Same-day availability is guaranteed for all S&P 500 and most mid-cap companies.
Is the transcript edited or altered in any way?
No material content is ever changed or summarized in the “Full Transcript” section. We only correct obvious spoken typos (e.g., “um”, “ah”, repeated 10 times”, or clear misspoken ticker symbols) and add speaker names/titles for readability. Every substantive sentence remains 100% as spoken.
Why do some answers appear as “Unclear” or “Inaudible”?
When audio quality is poor or multiple speakers talk over each other, we mark the section instead of guessing. This ensures complete accuracy rather than introducing potential errors.
Who creates the AI Summary and Key Q&A highlights shown above the transcript?
They are generated by a specialized financial-language model trained exclusively on 15+ years of earnings transcripts. The model extracts financial figures, guidance, and tone with 97%+ accuracy and is regularly validated against human analysts. The full raw transcript always remains available for verification.
