BMA — Banco Macro S.A.

Banco Macro Q4 2025 Earnings Call Summary

1. Key Financial Results and Metrics

• Net Income: ARS 100 billion for Q4 2025, a recovery from the previous quarter's loss but 26% lower than Q4 2024.
• Fiscal Year 2025 Net Income: ARS 290.7 billion, down 32% from FY 2024.
• Return on Equity (ROE): 5.1% for Q4 2025; 6.6% when excluding ARS 82.9 billion in nonrecurring expenses.
• Return on Assets (ROA): 1.4% for Q4 2025; 1.8% adjusted.
• Net Interest Income: ARS 836.5 billion for Q4 2025, up 19% year-on-year.
• Provision for Loan Losses: ARS 169.3 million for Q4 2025, a significant increase of 243% year-on-year.
• Efficiency Ratio: Improved to 38.7% from 46.5% in Q3 2025.
• Non-performing Loans (NPL) Ratio: 3.87% as of Q4 2025.

2. Strategic Updates and Business Highlights

• The bank reduced its branch network by 75 branches, down to 444, and cut its headcount by 514 employees while gaining market share in loans and deposits.
• A successful strategy to remain short in U.S. dollars led to a net gain of ARS 26.3 billion.
• The bank is focusing on a bank-as-a-service model through its acquisition of 50% of Personal Pay, aiming to engage Telecom's 30 million customers.

3. Forward Guidance and Outlook

• 2026 Guidance: Adjusted loan growth expected at 20% in real terms, with deposit growth forecasted at 6%.
• Cost of Risk: Projected to decrease to 5.2% in 2026 from 5.6% in 2025.
• ROE Expectations: Adjusted ROE for 2026 is targeted at around 8%, with a potential return to mid-teens ROE by 2028 as inflation stabilizes.
• The bank anticipates a gradual increase in loan growth towards the second half of 2026.

4. Bad News, Challenges, or Points of Concern

• Declining Metrics: Net income and ROE are significantly lower year-on-year, raising concerns about profitability.
• Asset Quality: Continued deterioration in consumer asset quality, with NPLs expected to remain a challenge in the near term.
• Economic Environment: The macroeconomic outlook remains uncertain, with inflation projected to be higher than previously expected, impacting growth and lending capacity.
• Restructuring Costs: Ongoing restructuring expenses may continue to affect reported earnings in the near term.

5. Notable Q&A Insights

• The management acknowledged the need to adjust guidance based on changing macroeconomic conditions, including GDP growth and inflation forecasts.
• Concerns were raised about the widening gap between loan and deposit growth, attributed to lower consumer savings capacity.
• The bank's management expressed cautious optimism regarding asset quality improvements, citing better performance in new loan originations.
• The political landscape and upcoming reforms were discussed, with expectations that labor and tax reforms could positively influence the banking sector.

This summary encapsulates the key financial metrics, strategic initiatives, forward guidance, challenges, and insights from the Q&A session, providing a comprehensive overview of Banco Macro's performance and outlook for Q4 2025.