Macro Bank NYSE: BMA reported fourth-quarter 2025 net income of ARS 100 billion and full-year 2025 net income of ARS 290.7 billion, returning to profitability after a loss in the prior quarter, management said on the company’s earnings call. The bank’s full-year result was down 32% from fiscal 2024, while total comprehensive income for 2025 rose 1% to ARS 303 billion.
Management emphasized that results were affected by restructuring charges booked in the quarter. The bank recorded ARS 82.9 billion of restructuring expenses tied to early retirement plans and severance provisions. Excluding those non-recurring expenses, management said fourth-quarter net income would have been ARS 183 billion and full-year net income would have been ARS 393.7 billion.
Profitability and one-time items
The bank reported accumulated annualized return on average equity (ROE) and return on average assets (ROA) of 5.1% and 1.4%, respectively, for 2025. Excluding the fourth-quarter restructuring charges, management said ROE and ROA would have been 6.6% and 1.8%.
Executives said additional restructuring-related expenses could be booked in the first and second quarters of 2026, and that the bank will continue to present both “reported” and “adjusted” profitability metrics to separate recurring performance from these charges. In response to an analyst question, management estimated restructuring charges could reduce 2026 ROE by roughly 3 percentage points, implying reported ROE near 5% versus adjusted ROE around 8%.
Management also highlighted progress on cost actions during 2025, including a reduction of 75 branches (to 444 from 519 as of December 2024) and a decrease of 514 employees, which it said was achieved while gaining market share in private sector loans and deposits.
Net interest income, margins, and securities performance
Net interest income totaled ARS 836.5 billion in the fourth quarter, up 13% from the third quarter and up 19% year-over-year, driven by a 7% rise in interest income and a 1% decline in interest expense. The bank’s net interest margin (including “effects,” as described on the call) was 21.7% in the quarter, up from 18% in the third quarter but below 24.7% in the year-ago period.
Management discussed volatility in securities results, noting that a weak third quarter was partly tied to bond portfolio performance amid election-related volatility, while the fourth quarter reflected a reversal as nominal and real rates declined and local peso securities rebounded. Executives said modeling the bond portfolio depends largely on expectations for inflation and short-term rates, given the mix of instruments, and noted that volatility in those variables can cause quarterly swings.
The bank also described its U.S. dollar positioning in the second half of 2025, saying a strategy of remaining short U.S. dollars—combined with a long futures position and reinvestment of pesos generated by selling dollars—produced a net gain of ARS 26.3 billion in the fourth quarter.
Credit costs, asset quality, and provisioning
Loan loss provisions were ARS 169.3 billion in the fourth quarter, down 1% sequentially but up 243% year-over-year. For fiscal 2025, provisions totaled ARS 538.1 billion, up 274% from 2024. Management said consumer credit metrics worsened during the quarter, while commercial credit improved.
- Non-performing total financial ratio: 3.87%
- Coverage ratio (allowances over NPLs under bank rules): 119.86%
- Commercial NPLs: improved to 0.68% from 0.85% in the prior quarter
- Consumer NPLs: rose to 5.23% from 4.3% in the third quarter
Executives said the pace of deterioration in the consumer portfolio has slowed and that early 2026 indicators were “neutral” and relatively stable based on January versus December readings. They attributed improving trends to tighter underwriting and constrained consumer loan origination starting around April–May 2025, noting newer vintages were performing better and closer to 2024 levels.
For 2026, management guided to a cost of risk of about 5.2%, down from 5.6% in 2025, and said it expects NPLs to trend toward the “mid to low threes.” They indicated improvements are more likely in the second half of 2026, with stability in the first half.
Balance sheet growth, deposits, and capital
Total financing reached ARS 10.71 trillion, up 2% quarter-over-quarter and up 40% year-over-year. Total deposits rose 8% sequentially to ARS 13.7 trillion and increased 24% year-over-year. Private sector deposits increased 11% quarter-over-quarter, while public sector deposits fell 33% in the quarter.
The bank said it gained market share as of December 2025, with private sector loans at 8.3% (up 30 basis points year-over-year) and private deposits at 7.9% (up 90 basis points year-over-year). Transactional accounts represented about 47% of total deposits, management said.
Macro reported a capital adequacy ratio and Tier 1 ratio of 30.6%, and said it had excess capital of ARS 3.6 trillion. Liquidity remained high, with a liquid assets-to-deposits ratio of 73%. Management reiterated its intention to “make the best use” of excess capital through a mix of organic growth, inorganic opportunities, dividends, and potential buybacks. Executives said the board plans to propose a 100% cash dividend payout ratio, subject to Central Bank approval regarding the payment schedule.
2026 guidance update and strategic priorities
Management updated its 2026 outlook versus prior “soft guidance,” citing economist consensus for lower real GDP growth and higher inflation. Executives said they now expect:
- Loan growth: 20% real growth in calendar 2026
- Deposit growth: 6% real growth in calendar 2026
- Adjusted profitability: ROE around 8%, ROA in the 1.8%–2.0% range
On the deposit outlook, management said it expects only slightly positive real interest rates, which it believes limits deposit growth. It also noted the bank holds a securities portfolio that could be used to help fund loan growth if the gap between loan and deposit growth widens, while emphasizing the loan-to-deposit ratio remains below 100%.
Executives discussed Argentina’s reform agenda, including labor reform and an expected tax reform, and said they were watching President Javier Milei’s March 1 speech opening the congressional session for further clarity. Management highlighted one labor reform provision they said was favorable for banks, confirming that salary and pension payments must be made through bank accounts rather than digital wallets.
On digital strategy, the bank provided an update on its announced acquisition of 50% of Personal Pay (Telecom’s wallet), describing the deal as a cash-in transaction where the equity investment goes into building the business. Management said it plans to develop a “Banking as a Service” model to engage Telecom’s customer base and is still evaluating whether to operate the initiative through Banco Macro directly or through a subsidiary.
Executives also addressed U.S. dollar lending, noting current regulation allows lending deposit-funded dollars only to borrowers with dollar revenues (such as exporters). They said the government is exploring alternatives and that Macro would be prepared to expand dollar lending to high-quality customers if regulations evolve.
Looking longer term, management said it expects loan demand to improve gradually and cited sectors such as energy (oil and gas), mining, and agribusiness as more active, while noting construction, infrastructure (for now), and some consumer-linked segments have lagged. Executives also said certain manufacturing segments, including textiles, clothing, and automotive, have been under pressure amid economic opening and deregulation.
In response to questions about when ROE could return to the mid-teens, management pointed to the expected full impact of restructuring actions by 2028 and the possibility of a shift back to nominal reporting if Argentina remains below 100% inflation for three consecutive years, suggesting mid-teens ROE could be achievable in the 2028–2030 period based on those factors.
About Macro Bank NYSE: BMA
Macro Bank NYSE: BMA is the American depositary receipt program of Banco Macro SA, one of the largest privately owned banks in Argentina. Headquartered in Buenos Aires, the institution delivers a comprehensive suite of banking solutions to retail, corporate and agricultural customers across the country. Through its extensive branch network and digital platforms, Macro Bank aims to serve diverse client segments with tailored financial products and services.
The bank’s offerings span traditional deposit accounts—including checking, savings and term deposits—alongside payment and transaction services.
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