BMA Banco Macro SA

 

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C.  20549

 

 

FORM 6-K

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16 UNDER THE

SECURITIES EXCHANGE ACT OF 1934

 

February 15, 2017

 

 

Commission File Number: 001-32827

 

 

MACRO BANK INC.

(Translation of registrant’s name into English)

 

 

Sarmiento 447

Buenos Aires C1 1041

Tel: 54 11 5222 6500

 

(Address of registrant’s principal executive offices)

 

 

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

 

Form 20-F

x

Form 40-F

¨

 

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):

 

Yes

¨

No

x

 

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):

 

Yes

¨

No

x

 

Indicate by check mark whether by furnishing the information contained in this Form, the registrant is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

 

Yes

¨

No

x

 

If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b):  82-     N/A  

 

 

4Q16 Earnings Release

 

Banco Macro Announces Results for the Fourth Quarter of 2016

 

Buenos Aires, Argentina, February 15, 2017 – Banco Macro S.A. (NYSE: BMA; BCBA: BMA) (“Banco Macro” or “BMA” or the “Bank”) announced today its results for the fourth quarter ended December 31, 2016 (“4Q16”). All figures are in Argentine pesos (Ps.) and have been prepared in accordance with Argentine GAAP.

 

Summary

 

• The Bank’s net income totaled Ps.1.7 billion in 4Q16. This result was 4% higher than the Ps.1.6 billion posted in the third quarter of 2016 (“3Q16”). In 4Q16, the accumulated annualized return on average equity (“ROAE”) and the accumulated annualized return on average assets (“ROAA”) were 34.1% and 5.2%, respectively. Net Income of Ps.6.5 billion in 2016 was 31% higher than net income in 2015.

 

• In 4Q16, Banco Macro’s financing to the private sector grew 14% or Ps.10.5 billion quarter over quarter (“QoQ”) totaling Ps.86.9 billion and increased 38% or Ps. 24 billion year over year (“YoY”). In the quarter, growth was driven by commercial loans, among which Documents and Mortgages stand out, which grew 19% and 22% QoQ, respectively. Meanwhile within consumer loans, credit cards and personal loans rose 16% and 9% QoQ, respectively. As of December 2016, the “Credit Line for Productive Financing and Financial Inclusion”, totaled Ps. 5.5 billion. Banco Macro´s market share over private sector loans reached 8.1% as of 4Q16, increasing 50bp compared to 4Q15.

 

• In 4Q16, Banco Macro’s total deposits grew 10% QoQ, totaling Ps.111.9 billion and representing 84% of the Bank’s total liabilities. Private sector deposits grew 17% QoQ. Banco Macro´s market share over private sector deposits reached 6.8% as of 4Q16, increasing 40bp compared to 4Q15.

 

• Banco Macro continued showing a strong solvency ratio, with excess capital of Ps.17.5 billion (22.1% regulatory capitalization ratio – Basel III). In addition, the Bank’s liquid assets remained at an adequate level, reaching 47.6% of its total deposits in 4Q16.

 

• In 4Q16, the Bank’s non-performing to total financing ratio was 1.14% and the coverage ratio reached 176.51%.

 

4Q16 Earnings Release Conference Call Thursday, February 16, 2017 Time: 11:00 a.m. Eastern Time | 1:00 p.m. Buenos Aires Time			IR Contacts in Buenos Aires :   Jorge Scarinci Finance & IR Manager
To participate, please dial: Argentina Toll Free: (0800) 444 2930 Participants Dial In (Toll Free): +1 (844) 839 2185 Participants International Dial In: +1 (412) 317 2506   Conference ID: Banco Macro Webcast: click here		Webcast Replay: click here   Available from 02/16/2017 through 03/02/2017	Ines Lanusse Head of Investor Relations   Phone: (54 11) 5222 6682 E-mail: investorelations@macro.com.ar   Visit our website at: www.ri-macro.com.ar

With the presence of: Jorge Pablo Brito (Director), Gustavo Manriquez (General Manager), Jorge Scarinci (Finance and IR Manager) and Ines Lanusse (Head of Investor Relations).

 

 

 

4Q16 Earnings Release

 

Disclaimer

 

This press release includes forward-looking statements. We have based these forward-looking statements largely on our current beliefs, expectations and projections about future events and financial trends affecting our business. Many important factors could cause our actual results to differ substantially from those anticipated in our forward-looking statements, including, among other things: inflation; changes in interest rates and the cost of deposits; government regulation; adverse legal or regulatory disputes or proceedings; credit and other risks of lending, such as increases in defaults by borrowers; fluctuations and declines in the value of Argentine public debt; competition in banking and financial services; deterioration in regional and national business and economic conditions in Argentina; and fluctuations in the exchange rate of the peso.

 

The words “believe,” “may,” “will,” “aim,” “estimate,” “continue,” “anticipate,” “intend,” “expect” and similar words are intended to identify forward-looking statements. Forward-looking statements include information concerning our possible or assumed future results of operations, business strategies, financing plans, competitive position, industry environment, potential growth opportunities, the effects of future regulation and the effects of competition. Forward-looking statements speak only as of the date they were made, and we undertake no obligation to update publicly or to revise any forward-looking statements after we distribute this press release because of new information, future events or other factors. In light of the risks and uncertainties described above, the forward-looking events and circumstances discussed in this press release might not occur and are not guarantees of future performance.

 

This report is a summary analysis of Banco Macro's financial condition and results of operations as of and for the period indicated. For a correct interpretation, this report must be read in conjunction with all other material periodically filed with the Comisión Nacional de Valores (www.cnv.gob.ar), the Securities and Exchange Commission (www.sec.gov), the Bolsa de Comercio de Buenos Aires (www.bolsar.com) and the New York Stock Exchange (www.nyse.com). In addition, the Central Bank (www.bcra.gov.ar) may publish information related to Banco Macro as of a date subsequent to the last date for which the Bank has published information.

 

Readers of this report must note that this is a translation made from an original version written and expressed in Spanish. Consequently, any matters of interpretation should be referred to the original version in Spanish.

 

 

 

4Q16 Earnings Release

 

Results

 

Earnings per outstanding share were Ps.2.90 in 4Q16, 4% higher than in 3Q16 and 14% lower than 4Q15.

 

EARNINGS PER SHARE		MACRO consolidated																												Variation
In MILLION $		4Q15				1Q15				2Q16				3Q16				4Q16				2015				2016				Annual
Net income (M $)			1,966.9				1,407.6				1,805.3				1,632.6				1,695.3				5,009.9				6,540.8				31	%
Average shares issued (M)			584.5				584.5				584.5				584.5				584.5				584.5				584.5				0	%
Book value per issued share ($)			27.16				30.20				32.13				34.92				37.82				27.2				37.8				39	%
Earnings per  outstanding share ($)			3.37				2.41				3.09				2.79				2.90				8.57				11.19				31	%
Book value per issued ADS (USD)			20.89				20.71				21.53				22.88				23.86				20.9				23.9				14	%
Earnings per outstanding ADS (USD)			2.59				1.65				2.07				1.83				1.83				6.59				7.06				7	%

 

Banco Macro’s 4Q16 net income of Ps.1.7 billion, was 4% or Ps.62.7 million higher than the previous quarter and 14% or Ps.271.6 million lower YoY.

 

In 2016 Banco Macro´s net income was Ps.6.5 billion, 31% higher than the Ps.5.0 billion posted in 2015. This result represented a ROAE and ROAA of 34.1% and 5.2% respectively.

 

The operating result for 4Q16 was Ps.2.6 billion, increasing 3% or Ps.75.7 million QoQ. Had Income from government and private securities and income on guaranteed loans and in CER adjustments been excluded, operating result would have been 15% higher than the 3Q16 result.

 

In 2016, the operating result of Ps.10 billion was 32% higher than the result of 2015.

 

It is important to emphasize that this result was obtained with a leverage of 7x assets to equity ratio.

 

INCOME STATEMENT		MACRO consolidated																												Variation
In MILLION $		4Q15				1Q15				2Q16				3Q16				4Q16				2015				2016				Annual
Net financial income			3,710.8				3,265.3				4,154.9				3,972.2				4,242.1				11,266.4				15,634.5				39	%
Provision for loan losses			-320.0				-178.2				-298.5				-242.4				-354.0				-877.1				-1,073.1				22	%
Net fee income			1,248.1				1,162.1				1,272.6				1,398.0				1,532.2				4,400.6				5,364.9				22	%
			4,638.9				4,249.2				5,129.0				5,127.8				5,420.3				14,789.9				19,926.3				35	%
Administrative expenses			-2,003.7				-2,120.9				-2,437.0				-2,598.0				-2,814.8				-7,225.9				-9,970.7				38	%
Operating result			2,635.2				2,128.3				2,692.0				2,529.8				2,605.5				7,564.0				9,955.6				32	%
Minority interest in subsidiaries			-9.8				-10.6				-14.7				-12.6				-16.7				-35.4				-54.6				54	%
Net other income			7.7				52.3				100.2				17.4				-52.7				-33.0				117.2				-455	%
Net income before income tax			2,633.1				2,170.0				2,777.5				2,534.6				2,536.1				7,495.6				10,018.2				34	%
Income tax			-666.2				-762.4				-972.2				-902.0				-840.8				-2,485.7				-3,477.4				40	%
NET INCOME			1,966.9				1,407.6				1,805.3				1,632.6				1,695.3				5,009.9				6,540.8				31	%

 

The Bank’s 4Q16 financial income totaled Ps.7.6 billion, increasing 2% (Ps.159.7 million) compared to 3Q16 and increasing 19% (Ps.1.2 billion) YoY.

 

In 2016, financial income totaled Ps.28.9 billion, 44% higher than in 2015.

 

Interest on loans represented 77% of total financial income in 4Q16. Interest on loans was 4% or Ps.237.4 million higher than 3Q16’s level due to an 11% higher average volume of the loan portfolio and a decrease in the average interest lending rates of 170bp. On an annual basis, interest on loans grew 33% or Ps.1.4 billion.

 

 

4Q16 Earnings Release

 

In 2016, interest on loans totaled Ps.21.6 billion, 43% higher than in 2015.

 

In 4Q16, net income from government and private securities decreased 2% or Ps.25.5 million QoQ, mainly due to less income from government and private securities, which was partially compensated with an increase in LEBACs income. On an annual basis, net income from government and private securities grew 8% or Ps.117.8 million.

 

In 2016, net income from government and private securities of Ps.6.2 billion, grew 56% compared to 2015.

 

In the quarter, a decrease of 23% or Ps.20.1 million in income from Guaranteed Loans and in CER Adjustment was observed. On an annual basis, income from Guaranteed Loans and in CER Adjustment increased Ps.35.1 million.

 

Income from differences in quoted prices of gold and foreign currency decreased 13% or Ps.13.5 million QoQ mainly due to lower foreign currency position (mostly more deposits and Notes). On an annual basis, a decrease of 77% or Ps.292.3 million was experienced.

 

Also in the quarter, other financial income decreased 32% or Ps.17.9 million compared to 3Q16 mainly due to less premiums on reverse repurchase agreements. On an annual basis, a decrease of 63% or Ps.63.1 million was experienced.

 

FINANCIAL INCOME		MACRO consolidated																												Variation
In MILLION  $		4Q15				1Q15				2Q16				3Q16				4Q16				2015				2016				Annual
Interest on cash and due from banks			0.1				0.3				0.4				0.4				0.1				0.2				1.2				500	%
Interest on loans to the financial sector			14.1				32.8				55.5				71.8				88.0				88.0				248.1				182	%
Interest on overdrafts			397.1				520.3				652.9				670.7				650.5				1,407.0				2,494.4				77	%
Interest on documents			350.7				395.4				373.1				390.9				399.7				1,146.2				1,559.1				36	%
Interest on mortgages loans			169.4				184.9				184.5				183.8				176.6				556.6				729.8				31	%
Interest on pledges loans			102.9				100.5				89.7				84.2				86.3				385.0				360.7				-6	%
Interest on credit cards loans			737.7				919.3				1,012.6				977.9				1,041.1				2,646.1				3,950.9				49	%
Interest on financial leases			22.6				23.5				23.9				21.9				20.6				81.7				89.9				10	%
Interest on other loans			2,568.9				2,784.9				2,921.3				3,157.8				3,333.6				8,811.8				12,197.6				38	%
Net Income from government & private securities (1)			1,465.2				1,015.6				2,015.7				1,608.5				1,583.0				3,985.9				6,222.8				56	%
Interest on other receivables from financial interm.			0.5				1.2				1.4				2.0				1.6				4.1				6.2				51	%
Income from Guaranteed Loans - Decree 1387/01			6.6				7.0				7.7				10.1				8.9				25.1				33.7				34	%
CER adjustment			24.9				56.9				64.7				76.6				57.7				58.5				255.9				337	%
CVS adjustment			0.3				0.2				0.2				0.2				0.2				0.7				0.8				14	%
Difference in quoted prices of gold and foreign currency			379.2				258.8				70.8				100.4				86.9				653.1				516.9				-21	%
Other			100.9				117.6				56.2				55.7				37.8				259.1				267.3				3	%
Total financial income			6,341.1				6,419.2				7,530.6				7,412.9				7,572.6				20,109.1				28,935.3				44	%
(1) Net Income from government & private securities
LEBACs			537.6				664.2				1,079.0				1,101.9				1,200.8				2,132.6				4,046.0				90	%
Other Govermnet Securities			633.7				223.2				715.3				357.9				306.3				1,420.3				1,602.7				13	%
Local Shares			346.9				57.0				138.1				103.2				25.3				295.7				323.6				9	%
Others			-53.0				71.2				83.3				45.5				50.5				137.3				250.5				82	%
Total			1,465.2				1,015.6				2,015.7				1,608.5				1,583.0				3,985.9				6,222.8				56	%

 

The Bank’s 4Q16 financial expense totaled Ps.3.3 billion, decreasing 3% (Ps.110.2 million) compared to the previous quarter and increasing 27% (Ps.700.2 million) compared to 4Q15.

 

In 2016, financial expense totaled Ps.13.3 billion, 50% higher than in 2015.

 

In 4Q16, interest on deposits represented 74% of the Bank’s total financial expense, decreasing 9% or Ps.247.2 million QoQ. This decrease was mainly driven by a decrease of 330bp in the average time deposit interest rate, which was partially compensated with a 7% increase of the average volume of time deposits. On a yearly basis, interest on deposits grew 22% or Ps.451.7 million.

 

In 2016, interest on deposits totaled Ps.10.4 billion, 53% higher than in 2015.

 

 

4Q16 Earnings Release

 

Other financial expense grew 12% or Ps.67 million QoQ mainly due to higher provincial taxes and increased 54% or Ps.227.4 million YoY.

 

FINANCIAL EXPENSE		MACRO consolidated																												Variation
In MILLION $		4Q15				1Q15				2Q16				3Q16				4Q16				2015				2016				Annual
Interest on saving accounts			20.8				20.7				22.9				22.8				23.5				68.2				89.9				32	%
Interest on time deposits			2,003.8				2,453.6				2,676.6				2,700.7				2,452.8				6,704.9				10,283.7				53	%
Interest on interfinancing received loans			1.1				1.0				0.1				0.7				1.2				7.0				3.0				-57	%
Interest on other financing from the finan. institu.			0.0				0.1				0.2				0.2				-0.5				0.0				0.0				0	%
Interest on subordinated bonds			37.8				53.6				51.3				55.1				117.2				136.2				277.2				104	%
Other Interest			0.6				0.9				1.4				1.1				0.8				2.6				4.2				62	%
Interest on other liabilities from fin intermediation			26.4				35.7				34.9				36.3				38.9				96.0				145.8				52	%
CER adjustment			0.9				3.5				2.7				3.0				2.9				4.6				12.1				163	%
Contribution to Deposit Guarantee Fund			117.1				96.4				35.5				38.6				44.5				418.4				215.0				-49	%
Other			421.8				488.4				550.1				582.2				649.2				1,404.8				2,269.9				62	%
Total financial expense			2,630.3				3,153.9				3,375.7				3,440.7				3,330.5				8,842.7				13,300.8				50	%

 

As of 4Q16, the Bank’s accumulated net interest margin was 18.2%, slightly lower than the 18.5% posted in 3Q16 and wider than the 17.9% posted in 4Q15. Had income from government and private securities and guaranteed loans been excluded, the Bank’s accumulated net interest margin would have been 15.3% in 4Q16, wider than the 15.2% in 3Q16 and slightly lower than the 15.6% posted in 4Q15.

 

ASSETS & LIABILITIES PERFORMANCE		MACRO consolidated
In MILLON $		4Q15								1Q15								2Q16								3Q16								4Q16
Yields & rates in annualized nominal %		AVERAGE BALANCE				INT				AVERAGE BALANCE				INT				AVERAGE BALANCE				INT				AVERAGE BALANCE				INT				AVERAGE BALANCE				INT
Interest-earning assets
Goverment Securities			15,031.4				31.1	%			17,185.8				20.9	%			20,414.7				35.4	%			22,933.0				25.4	%			25,904.9				23.2	%
Loans			58,579.2				29.8	%			63,168.6				32.0	%			65,811.0				32.9	%			72,253.9				31.1	%			80,012.5				29.2	%
Private Sector			58,079.2				29.8	%			62,398.6				31.8	%			64,943.9				32.7	%			71,261.2				30.8	%			78,975.2				29.1	%
Public Sector			500.0				28.0	%			770.0				48.2	%			867.1				49.3	%			992.7				49.6	%			1,037.3				35.2	%
Financial trusts			207.9				28.1	%			364.3				30.7	%			497.8				35.9	%			394.9				31.0	%			393.5				35.3	%
Other interest-earning assets			3,524.4				37.6	%			4,385.6				15.2	%			3,875.8				24.4	%			3,535.9				19.0	%			2,586.2				11.4	%
Total interest-earning assets			77,342.9				30.4	%			85,104.3				28.9	%			90,599.3				33.1	%			99,117.7				29.3	%			108,897.1				27.3	%
Non interest-earning assets			20,573.3								25,301.3								26,166.1								29,986.8								38,880.4
Total Average Assets			97,916.2								110,405.6								116,765.4								129,104.5								147,777.5
Interest-bearing liabilities
Checking accounts (*)			2,037.7				0.0	%			2,802.8				0.0	%			2,838.4				0.0	%			2,783.8				0.0	%			1,727.6				0.0	%
Saving accounts (*)			13,230.6				0.6	%			14,109.8				0.6	%			14,940.7				0.6	%			17,288.7				0.5	%			20,217.1				0.5	%
Time deposits (*)			34,920.2				22.8	%			42,577.3				23.2	%			45,867.7				23.5	%			51,054.3				21.1	%			54,751.6				17.8	%
Corporate Bonds			2,608.4				9.3	%			3,700.1				9.4	%			3,645.3				9.2	%			3,831.8				9.3	%			7,561.5				8.0	%
BCRA			6.9				8.6	%			5.4				8.4	%			3.7				8.2	%			1.2				5.2	%			0.2				0.0	%
Other interest-bearing liabilities			226.1				13.7	%			154.5				21.2	%			298.5				26.7	%			260.0				32.7	%			543.3				15.2	%
Total interest-bearing liabilities			53,029.9				15.7	%			63,349.9				16.3	%			67,594.3				16.7	%			75,219.8				15.0	%			84,801.3				12.4	%
Non interest-bearing liabilities
Demand deposits (*)			23,656.5								22,650.6								23,781.8								26,586.1								30,224.8
Other non interest-bearing libilities & equity			21,229.8								24,405.1								25,389.3								27,298.6								32,751.4
Total non interest-bearing liab. & equity			44,886.3								47,055.7								49,171.1								53,884.7								62,976.2
Total Average Liabilities & Equity			97,916.2								110,405.6								116,765.4								129,104.5								147,777.5
Assets Performance							5,918.9								6,111.9								7,463.2								7,311.8								7,485.0
Liabilities Performance							2,094.2								2,570.1								2,804.3								2,836.1								2,652.4
Net Interest Margin (NIM)							3,824.7								3,541.8								4,658.9								4,475.6								4,832.6

 

(*) The average cost of funds is calculated only considering deposits with and without interest-bearnig cost.

 

In 4Q16, Banco Macro’s net fee income totaled Ps.1.5 billion, 10% or Ps.134.2 million higher than 3Q16, and 23% or Ps.284.1 million higher than 4Q15.

 

In the quarter, fee income increased 12% or Ps.247.8 million. Fee charges on debit and credit card and deposit accounts fees stand out, which increased 17% and 9% respectively. On a yearly basis, fee income increased 30% or Ps.535 million, having the same concepts stand out (33% and 31% increase, respectively).

 

 

4Q16 Earnings Release

 

In the quarter, total fee expenses grew 17% or Ps.113.6 million, having higher charges paid to debit/credit card brands and higher other fee expenses. On a yearly basis, fee expenses increased 48% or Ps.250.9 million, having similar concepts stand out (58% and 99% respectively).

 

In 2016, net fee income totaled, Ps.5.4 billion, 22% higher than in 2015.

 

NET FEE INCOME		MACRO consolidated																												Variation
In MILLION $		4Q15				1Q15				2Q16				3Q16				4Q16				2015				2016				Annual
Fee charges on deposit accounts			992.1				1,026.4				1,081.3				1,192.4				1,296.1				3,561.2				4,596.2				29	%
Debit and credit card fees			514.5				470.0				517.3				583.7				685.4				1,628.6				2,256.4				39	%
Other fees related to foreign trade			29.8				38.8				30.5				32.1				33.4				100.6				134.8				34	%
Credit-related fees			42.8				17.4				31.7				33.9				69.6				124.6				152.6				22	%
Lease of safe-deposit boxes			26.6				26.7				27.1				31.0				35.1				95.6				119.9				25	%
Other			167.1				158.6				174.9				187.0				188.3				604.8				708.8				17	%
Total fee income			1,772.9				1,737.9				1,862.8				2,060.1				2,307.9				6,115.4				7,968.7				30	%
Debit and Credit card expenses			241.6				283.5				287.8				343.3				380.8				773.9				1,295.4				67	%
Turnover tax and municipal assessments			92.3				97.8				101.5				109.0				119.2				307.6				427.5				39	%
Comission paid to lending agencies			76.5				76.4				75.9				56.2				47.3				209.3				255.8				22	%
Foreign trade comissions			1.9				2.1				2.2				3.0				5.0				6.9				12.3				78	%
Others			112.5				116.0				122.8				150.6				223.4				417.1				612.8				47	%
Total fee expense			524.8				575.8				590.2				662.1				775.7				1,714.8				2,603.8				52	%
Net fee income			1,248.1				1,162.1				1,272.6				1,398.0				1,532.2				4,400.6				5,364.9				22	%

 

In 4Q16 Banco Macro’s administrative expenses reached Ps.2.8 billion, 8% or Ps.216.8 million higher than the previous quarter mainly due to higher personnel expenses and other operating expenses. Administrative expenses increased 40% or Ps.811.1 million YoY due to an increase in personnel expenses (mainly higher salaries and other concepts) and other operating expenses.

 

Personnel expenses grew 4% or Ps.67.5 million QoQ, basically due to bonuses and other personnel benefits and increased 41% or Ps.488.6 million YoY.

 

In 2016, administrative expenses totaled Ps.10 billion, 38% higher than in 2015.

 

As of December 2016, the accumulated efficiency ratio reached 47.5%, compared to the 47% posted in 3Q16. Administrative expenses grew 39%, while net financial income and net fee income grew 38% as whole.

 

ADMINISTRATIVE EXPENSES		MACRO consolidated																												Variation
In MILLION $		4Q15				1Q15				2Q16				3Q16				4Q16				2015				2016				Annual
Personnel expenses			1,195.4				1,245.6				1,492.9				1,616.5				1,684.0				4,324.1				6,039.0				40	%
Directors & statutory auditors´fees			72.0				67.6				84.3				80.1				82.5				233.0				314.5				35	%
Other professional fees			58.7				57.9				70.7				68.9				85.7				217.9				283.2				30	%
Advertising & publicity			45.5				47.8				35.3				39.4				75.0				143.9				197.5				37	%
Taxes			113.3				115.1				137.3				132.1				149.9				411.8				534.4				30	%
Depreciation of equipment			45.0				46.4				49.5				52.6				56.6				170.6				205.1				20	%
Amortization of organization costs			40.6				43.3				48.5				51.3				54.0				150.6				197.1				31	%
Other operating expenses			273.5				318.7				332.2				362.6				386.4				1,008.3				1,399.9				39	%
Other			159.7				178.5				186.3				194.5				240.7				565.7				800.0				41	%
Total Administrative Expenses			2,003.7				2,120.9				2,437.0				2,598.0				2,814.8				7,225.9				9,970.7				38	%
Total Employees			8,727				8,749				8,768				8,626				8,617				8,727				8,617				-1	%
Branches			439				439				438				444				444				439				444				1	%
Efficiency ratio			40.4	%			47.9	%			44.9	%			48.4	%			48.7	%
Accumulated efficiency ratio			46.1	%			47.9	%			46.3	%			47.0	%			47.5	%			46.1	%			47.5	%

 

 

4Q16 Earnings Release

 

In 4Q16, the Bank’s net other income/losses totaled a Ps.52.7 million loss, compared to the Ps.17.4 million gain registered in 3Q16. During this quarter, other expenses increased Ps.105.4 million (Ps.45 million for the Class A Subordinated Notes offering and other provisions for Ps.46.1 million), which were partially offset by an increase in other income for Ps.35.4 million, within which a provision recovery for Ps.36.3 million stand out.

 

In 2016, net other income/losses totaled Ps.117.2 million, Ps.150.2 million higher than in 2015.

 

NET OTHER INCOME/LOSSES		MACRO consolidated																												Variation
In MILLION $		4Q15				1Q15				2Q16				3Q16				4Q16				2015				2016				Annual
Other Income
Penalty interest			15.2				20.5				21.8				21.3				19.5				72.8				83.1				14	%
Recovered loans and  reversed allowances			44.7				39.9				55.0				49.2				85.5				151.8				229.6				51	%
Other			37.4				78.8				109.3				48.4				49.3				184.6				285.8				55	%
Total Other Income			97.3				139.2				186.1				118.9				154.3				409.2				598.5				46	%
Other Expense
Charges for other receivables uncollectibility and other allowances			51.7				32.8				39.4				51.4				79.7				185.7				203.3				9	%
Goodwill amortization			3.6				3.5				3.2				2.0				1.4				14.1				10.1				-28	%
Other Expense			34.3				50.5				43.3				48.2				125.9				242.4				267.9				11	%
Total Other Expense			89.6				86.8				85.9				101.6				207.0				442.2				481.3				9	%
Net Other Income/Losses			7.7				52.3				100.2				17.4				-52.7				-33.0				117.2				-455	%

 

In 2016, Banco Macro's effective income tax rate was 34.7%, compared to 33.2% in 2015.

 

Financial Assets

 

Private sector financing

 

The volume of “core” financing to the private sector (including loans, financial trust and leasing portfolio) totaled Ps.86.9 billion, increasing 14% or Ps.10.5 billion QoQ and 38% or Ps.24.0 billion YoY.

 

Within commercial loans, growth was driven by documents and mortgages loans, which grew 19% and 22% QoQ, respectively. Banco Macro continued supporting the Argentine productive sector through the “Credit Line for Productive Financing and Financial Inclusion”. As of 4Q16, Ps.5.5 billion loans have been accounted under this program, plus a residual loan portfolio from the former “Productive Investment Program (LIP)” for Ps.3.3 billion, totaling together, Ps.8.8 billion. Total loans to the productive sector from Banco Macro represented 10% of our financing to the private sector.

 

The main growth in consumer loans was driven by credit card and personal loans which grew 16% and 9% QoQ, respectively.

 

As of 4Q16, Banco Macro´s market share over private sector loans, was 8.1%, 50bp higher than in 4Q15.

 

 

4Q16 Earnings Release

 

FINANCING TO THE PRIVATE SECTOR		MACRO consolidated																				Variation
In MILLION $		4Q15				1Q15				2Q16				3Q16				4Q16				Quarterly				Annualy
Overdrafts			4,707.9				4,478.3				7,679.9				8,943.5				8,837.7				-1	%			88	%
Discounted documents			6,550.2				5,401.8				7,449.4				9,406.4				11,198.9				19	%			71	%
Mortgages loans			3,508.5				3,286.3				3,179.4				3,409.6				4,158.6				22	%			19	%
Pledges loans			2,152.6				1,958.2				1,767.3				1,819.6				2,285.1				26	%			6	%
Personal loans			23,231.6				24,566.1				25,761.3				27,251.4				29,784.8				9	%			28	%
Credit Card loans			14,793.3				14,896.4				16,052.9				16,305.5				18,851.6				16	%			27	%
Others			7,078.5				6,868.4				7,910.4				8,230.5				10,465.8				27	%			48	%
Total loan portfolio			62,022.6				61,455.5				69,800.6				75,366.5				85,582.5				14	%			38	%
Financial trusts			429.9				794.2				520.9				715.7				954.7				33	%			122	%
Leasing			432.5				416.5				393.0				369.0				369.1				0	%			-15	%
Total financing to the private sector			62,885.0				62,666.2				70,714.5				76,451.2				86,906.3				14	%			38	%
Market share over loan portfolio			7.6	%			7.4	%			7.8	%			8.0	%			8.1	%

 

Public Sector Assets

 

In 4Q16, the Bank’s public sector assets (excluding LEBACs) to total assets ratio was 3.7%, higher than the 3.4% posted in 3Q16 and the 5% posted in 4Q15.

 

In 4Q16, a 21% decrease in LEBACs position stands out.

 

PUBLIC SECTOR ASSETS		MACRO consolidated																				Variation
In MILLION $		4Q15				1Q15				2Q16				3Q16				4Q16				Quarterly				Annualy
LEBACs			8,303.0				12,433.6				12,220.5				20,259.3				15,964.3				-21	%			92	%
Other			4,507.4				4,541.6				5,068.2				3,593.6				4,205.4				17	%			-7	%
Government securities			12,810.4				16,975.2				17,288.7				23,852.9				20,169.7				-15	%			57	%
Guaranteed loans			465.2				522.0				586.4				662.2				717.6				8	%			54	%
Provincial loans			282.9				283.2				384.1				346.6				814.9				135	%			188	%
Government securities loans			0.0				5.9				0.0				0.0				0.0				0	%			0	%
Loans			748.1				811.1				970.5				1,008.8				1,532.5				52	%			105	%
Purchase of government bonds			32.1				32.1				35.3				35.9				37.0				3	%			15	%
Other receivables			32.1				32.1				35.3				35.9				37.0				3	%			15	%
TOTAL PUBLIC SECTOR ASSETS			13,590.6				17,818.4				18,294.5				24,897.6				21,739.2				-13	%			60	%
TOTAL PUBLIC SECTOR LIABILITIES			31.6				32.2				29.9				114.5				23.6				-79	%			-25	%
Net exposure			13,559.0				17,786.2				18,264.6				24,783.1				21,715.6				-12	%			60	%
TOTAL PUBLIC SECTOR ASSETS (net of LEBAC / NOBAC )			5,287.6				5,384.8				6,074.0				4,638.3				5,774.9				25	%			9	%
TOTAL PUBLIC SECTOR ASSETS (net of LEBAC / NOBAC) /TOTAL ASSETS			5.0	%			4.7	%			4.9	%			3.4	%			3.7	%

 

Funding

 

Deposits

 

Banco Macro’s deposit base totaled Ps.111.9 billion in 4Q16, growing 10% or Ps.10.0 billion QoQ and 46% or Ps.35.4 billion YoY and representing 84% of the Bank’s total liabilities.

 

 

4Q16 Earnings Release

 

On a quarterly basis, private sector deposits increased 17% or Ps.15.0 billion while public sector deposits decreased 34% or Ps.5 billion. Within private sector deposits, an increase in foreign currency deposits of 36% or USD366.3 million was observed, while peso deposits increased 11% or Ps.8.0 billion QoQ.

 

The increase in private sector deposits was led by sight deposits, which grew 21% or Ps.8 billion QoQ. In addition, time deposits increased 3% or Ps.1.5 billion QoQ.

 

As of 4Q16, Banco Macro´s market share over private sector deposits, was 6.8%, 40bp higher than in 4Q15.

 

DEPOSITS		MACRO consolidated																				Variation
In MILLION $		4Q15				1Q15				2Q16				3Q16				4Q16				Quarterly				Annualy
Public sector			9,588.4				9,197.9				10,548.6				14,531.6				9,552.2				-34	%			0	%
Financial sector			40.1				41.1				44.4				42.0				55.8				33	%			39	%
Private sector			66,893.1				74,533.0				80,346.8				87,326.3				102,331.7				17	%			53	%
Checking accounts			14,062.9				15,381.4				16,796.4				17,777.6				17,686.2				-1	%			26	%
Savings accounts			15,507.9				15,836.7				19,406.5				19,850.3				27,896.0				41	%			80	%
Time deposits			34,719.8				40,359.4				41,108.1				46,146.1				47,652.4				3	%			37	%
Other			2,602.5				2,955.5				3,035.8				3,552.3				9,097.1				156	%			250	%
Total			76,521.6				83,772.0				90,939.8				101,899.9				111,939.7				10	%			46	%
Pesos			66,046.4				71,307.6				76,789.6				86,045.1				88,640.4				3	%			34	%
Foreign Currency			10,475.2				12,464.4				14,150.2				15,854.8				23,299.3				47	%			122	%
Market share over private deposits			6.4	%			6.7	%			6.8	%			7.0	%			6.8	%

 

Other sources of funds

 

In 4Q16, the total amount of other sources of funds increased 24% or Ps.5.9 billion compared to 3Q16, as a result of the issuance of the Class A Subordinated Notes due 2026 for USD400 million, and for a 8% or Ps.1.7 billion increase in the shareholder’s equity which was driven by 4Q16 positive results.

 

OTHER SOURCE OF FUNDS		MACRO consolidated																				Variation
In MILLION $		4Q15				1Q15				2Q16				3Q16				4Q16				Quarterly				Annualy
Central Bank of Argentina			12.9				10.3				10.6				7.1				8.4				18	%			-35	%
Banks and international institutions			98.6				29.7				42.6				38.6				129.9				237	%			32	%
Financing received from Argentine financial institutions			85.9				42.7				40.6				134.0				142.7				6	%			66	%
Subordinated corporate bonds			1,957.6				2,248.3				2,245.3				2,352.7				6,407.8				172	%			227	%
Non-subordinated corporate bonds			1,432.7				1,573.4				1,643.3				1,646.6				1,684.9				2	%			18	%
Shareholders´ equity			15,877.6				17,653.7				18,778.0				20,410.6				22,105.9				8	%			39	%
Total other source of funds			19,465.3				21,558.1				22,760.4				24,589.6				30,479.6				24	%			57	%

 

In 4Q16, Banco Macro’s average cost of funds reached 9.2%. This was mainly due to the decrease in the liabilities interest rate, and to Banco Macro’s transactional deposits, which represent approximately 45% of its total deposit base as of 4Q16. These accounts are low cost and are not sensitive to interest rate increases.

 

 

4Q16 Earnings Release

 

Liquid Assets

 

In 4Q16, the Bank’s liquid assets amounted to Ps.53.3 billion, showing an increase QoQ of 17% or Ps.7.8 billion on a yearly basis.

 

In 4Q16, Banco Macro experienced an increase in Cash of Ps.13.7 billion, and a decrease in LEBACS own portfolio of Ps.4.9 billion.

 

In 4Q16 Banco Macro’s liquid assets to total deposits ratio reached 47.6%.

 

LIQUID ASSETS		MACRO consolidated																				Variation
In MILLION  $		4Q15				1Q15				2Q16				3Q16				4Q16				Quarterly				Annualy
Cash			19,402.8				21,189.3				18,457.0				22,353.1				36,089.2				61	%			86	%
Guarantees for compensating chambers			1,541.4				1,877.6				1,934.1				2,031.1				2,094.0				3	%			36	%
Call			160.0				245.9				265.0				548.0				5.0				-99	%			-97	%
Reverse repos from other securities			3.5				272.3				16.2				-				-				0	%			0	%
Reverse repos from LEBAC/NOBAC			-				1,151.5				4,260.5				577.3				19.4				-97	%			0	%
LEBAC / NOBAC own portfolio			8,302.9				12,433.6				12,337.2				20,050.4				15,125.9				-25	%			82	%
Total			29,410.6				37,170.2				37,270.0				45,559.9				53,333.5				17	%			81	%
Liquid assets to total deposits			38.4	%			44.4	%			41.0	%			44.7	%			47.6	%

 

Solvency

 

Banco Macro continued showing high solvency levels in 4Q16 with an integrated capital (RPC) of Ps.27.8 billion over a total capital requirement of Ps.10.3 billion. Banco Macro´s excess capital in 4Q16 was 171% or Ps.17.5 billion.

 

The capitalization ratio (as a percentage of risk-weighted assets- RWA) was 22.1% in 4Q16, above the minimum required by the Central Bank.

 

The Bank´s aim is to make the best use of this excess capital.

 

 

4Q16 Earnings Release

 

MINIMUM CAPITAL REQUIREMENT		MACRO consolidated																				Variation
In MILLION $		4Q15				1Q15				2Q16				3Q16				4Q16				Quarterly				Annualy
Credit risk requirement			6,088.4				6,103.9				6,662.7				6,986.9				7,634.6				9	%			25	%
Market risk requirement			568.8				642.1				477.6				253.9				267.2				5	%			-53	%
Operational risk requirement			1,734.9				1,887.7				2,027.2				2,203.7				2,368.0				7	%			36	%
Total capital requirements			8,392.1				8,633.7				9,167.5				9,444.6				10,269.8				9	%			22	%
Ordinary Capital Level 1 (COn1)			14,892.6				16,948.4				17,796.9				19,571.0				21,258.3				9	%			43	%
Deductible concepts Level 1 (COn1)			-535.1				-526.7				-600.7				-638.6				-684.3				7	%			28	%
Aditional Capital Level 1 (CAn1)			321.0				275.1				275.1				275.1				0.0				-100	%			-100	%
Capital Level 2 (COn2)			629.2				626.5				709.7				765.1				7,217.9				843	%			1047	%
Integrated capital - RPC (i)			15,307.7				17,323.4				18,181.0				19,972.5				27,791.9				39	%			82	%
Risk-weighted assets - RWAc (ii)			73,636.8				73,793.0				80,791.8				84,777.6				92,647.2				9	%			26	%
Excess capital			6,915.6				8,689.7				9,013.5				10,528.0				17,522.1				66	%			153	%
Capitalization ratio [(i)/(ii)]			20.8	%			23.5	%			22.5	%			23.6	%			30.0	%
Risk-weighted assets - RWA (iii)			104,900.9				105,699.0				112,168.3				115,513.4				125,593.1				9	%			20	%
Regulatory Capital ratio [(i)/(iii)]			14.6	%			16.4	%			16.2	%			17.3	%			22.1	%
Ratio TIER 1 [Capital Level 1/RWA]			14.0	%			15.8	%			15.6	%			16.6	%			16.4	%

 

RWAc -(ii): Risk Weighed Assets, just cosidering credit risk requirement.

RWA - (iii): Risk Weighetd Assets, considering total capital requirements.

 

Asset Quality

 

In 4Q16, Banco Macro’s non-performing to total financing ratio reached a level of 1.14%, lower than the 1.46% posted in 3Q16, and lower than the 1.52% posted in 4Q15.

 

The coverage ratio reached 176.51% in 4Q16.

 

The Bank is committed to continue working in this area to maintain excellent asset quality standards.

 

ASSET QUALITY		MACRO consolidated																				Variation
In MILLION $		4Q15				1Q15				2Q16				3Q16				4Q16				Quarterly				Annualy
Commercial portfolio			23,162.8				22,917.1				27,614.4				30,075.3				34,989.5				16	%			51	%
Non-performing			405.7				377.5				397.1				360.3				194.9				-46	%			-52	%
Consumer portfolio			43,516.7				44,506.9				48,165.3				50,485.1				56,613.1				12	%			30	%
Non-performing			605.0				654.0				754.0				817.8				853.6				4	%			41	%
Total portfolio			66,679.5				67,424.0				75,779.7				80,560.4				91,602.6				14	%			37	%
Non-performing			1,010.7				1,031.5				1,151.1				1,178.1				1,048.5				-11	%			4	%
Total non-performing/ Total portfolio			1.52	%			1.53	%			1.52	%			1.46	%			1.14	%
Total allowances			1,526.6				1,562.4				1,732.5				1,827.8				1,850.7				1	%			21	%
Coverage ratio w/allowances			151.04	%			151.47	%			150.51	%			155.15	%			176.51	%

 

 

4Q16 Earnings Release

 

CER Exposure and Foreign Currency Position

 

CER EXPOSURE		MACRO consolidated																				Variation
In MILLION $		4Q15				1Q15				2Q16				3Q16				4Q16				Quarterly				Annualy
CER adjustable ASSETS
Guaranteed loans			465.2				522.0				586.4				662.2				717.5				8	%			54	%
Private sector loans			1.0				0.7				0.8				1.1				3.3				200	%			230	%
Other loans			0.3				0.2				0.5				0.7				0.2				-71	%			-33	%
Total CER adjustable assets			466.5				522.9				587.7				664.0				721.0				9	%			55	%
CER adjustable LIABILITIES
Deposits (*)			0.3				0.4				0.9				35.7				48.7				36	%			16133	%
Other liabilities from financial intermediation			31.4				31.1				29.6				27.2				23.4				-14	%			-25	%
Total CER adjustable liabilities			31.7				31.5				30.5				62.9				72.1				15	%			127	%
NET CER EXPOSURE			434.8				491.4				557.2				601.1				648.9				8	%			49	%

 

(*) Includes Time Deposits CER adjustable (UVAs)

 

FOREIGN CURRENCY POSITION		MACRO consolidated																				Variation
In MILLION $		4Q15				1Q15				2Q16				3Q16				4Q16				Quarterly				Annualy
Cash			10,102.6				12,521.0				9,955.9				9,254.3				21,394.9				131	%			112	%
Government and private securities			3,837.3				3,198.2				3,515.3				3,269.3				1,636.4				-50	%			-57	%
Loans			1,797.2				2,451.0				4,843.6				7,367.4				10,088.3				37	%			461	%
Other receivables from financial intermediation			539.7				632.6				759.4				833.4				524.1				-37	%			-3	%
Other assets			180.2				271.3				266.6				300.4				346.1				15	%			92	%
Total Assets			16,457.0				19,074.1				19,340.8				21,024.8				33,989.8				62	%			107	%
Deposits			10,475.3				12,464.2				14,150.2				15,854.8				23,299.4				47	%			122	%
Other liabilities from financial intermediation			928.5				1,303.0				1,108.8				844.7				1,142.5				35	%			23	%
Non-subordinated corporate bonds			1,432.7				1,573.4				1,643.2				1,646.5				1,684.9				2	%			18	%
Subordinated corporate bonds			1,957.6				2,248.3				2,245.3				2,352.7				6,407.8				172	%			227	%
Other liabilities			9.9				3.4				24.6				3.3				1.8				-45	%			-82	%
Total Liabilities			14,804.0				17,592.3				19,172.1				20,702.0				32,536.4				57	%			120	%
NET FX POSITION			1,653.0				1,481.8				168.7				322.8				1,453.4				350	%			-12	%

 

 

4Q16 Earnings Release

 

Relevant and Recent Events

 

·

Redemption of Subordinated Note 2036. In December 2016 the redemption option on Notes 2036 were exercised.

 

·

Cancelation Senior Note 2017. In February 2017, Senior Notes 2017 were completely paid (capital and interest).

 

·

Credit Line for Productive Financing and Financial Inclusion. As of December 2016, the Bank has satisfactorily fulfilled the quota for the second semester of 2016.

 

·

Local Private Shares Portfolio . As of January 2017, Banco Macro had sold the entire portfolio.

 

Regulatory Changes

 

·

Net Global Position (PGN). On December 23rd 2016, through Communication "A" 6128 of BCRA, the PGN limits were modified. The Central Bank decided that as January 1st 2017, Negative PGN, may not exceed 25% of RWA of the previous month (15% up to now), while Positive daily PGN may not exceed 25% of RWA or the Bank’s own liquid resources, both referring to the previous month, whichever is the less (15% up to now).

 

Business Strategy

 

·

Telecom Personal Deal. During December 2016 and together with Telecom Personal, Banco Macro launched a cell phone plan associated with banking account. It is exclusive for Banco Macro customers. It includes discounts, monthly installments and lower prices when acquiring new equipment.

 

·

Digital Banking. During December 2016 Banco Macro launched its mobile app, a key component of its Omni channel strategy, now offering the same technologies and platforms that its peers, giving customers a quick response to their needs.

 

·

Expansion Strategy. Between December 2016 and January 2017, a new branch in Villa Carlos Paz (Province of Córdoba) was inaugurated. Also, Banco Macro installed 31 extra ATMs in different locations of Argentina.

 

·

IT Investments. During 2016 Banco Macro invested heavily in IT systems (IBM Pure Data for Analytics) and micro segmentation tools and predictive models with the objective of offering its clients a better and faster response to their needs.

 

News

 

·

Price Winner. In November 2016 Banco Macro was awarded with the “Best Private Bank of the year” by Latin Finance magazine.

 

 

4Q16 Earnings Release

 

QUARTERLY BALANCE SHEET		MACRO consolidated																				Variation
In MILLION $		4Q15				1Q15				2Q16				3Q16				4Q16				Quarterly				Annualy
ASSETS			104,952.0				115,697.7				127,981.1				136,780.4				154,999.0				13	%			48	%
Cash			19,402.8				21,189.3				18,457.0				22,353.1				36,089.2				61	%			86	%
Government and Private Securities			15,391.4				21,503.2				25,149.0				27,230.8				19,846.3				-27	%			29	%
-LEBAC/NOBAC			8,303.0				13,585.1				16,597.7				20,627.7				15,145.3				-27	%			82	%
-Other			7,088.4				7,918.1				8,551.3				6,603.1				4,701.0				-29	%			-34	%
Loans			62,332.4				62,148.3				70,918.6				76,870.5				87,973.0				14	%			41	%
to the non-financial government sector			748.1				805.2				970.5				1,008.8				1,532.5				52	%			105	%
to the financial sector			227.4				491.7				864.7				1,317.5				1,730.6				31	%			661	%
to the non-financial private sector and foreign residents			62,852.9				62,380.2				70,790.2				76,347.0				86,540.4				13	%			38	%
-Overdrafts			4,707.9				4,478.3				7,679.9				8,943.5				8,837.7				-1	%			88	%
-Documents			6,550.2				5,401.8				7,449.4				9,406.4				11,198.9				19	%			71	%
-Mortgage loans			3,508.5				3,286.3				3,179.4				3,409.6				4,158.6				22	%			19	%
-Pledge loans			2,152.6				1,958.2				1,767.3				1,819.6				2,285.1				26	%			6	%
-Personal loans			23,231.6				24,566.1				25,761.3				27,251.4				29,784.8				9	%			28	%
-Credit cards			14,793.3				14,896.4				16,052.9				16,305.5				18,851.6				16	%			27	%
-Other			7,078.5				6,868.4				7,910.4				8,230.5				10,465.8				27	%			48	%
-Accrued interest, adjustments, price differences receivables and unearned discount			830.3				924.7				989.6				980.5				957.9				-2	%			15	%
Allowances			-1,496.0				-1,528.8				-1,706.8				-1,802.8				-1,830.5				2	%			22	%
Other receivables from financial intermediation			3,295.3				5,996.4				8,342.8				4,899.6				5,313.6				8	%			61	%
Receivables from financial leases			433.9				417.6				396.4				369.7				370.2				0	%			-15	%
Investments in other companies			10.9				11.1				11.1				11.2				11.4				2	%			5	%
Other receivables			978.9				1,156.8				1,136.5				1,212.2				1,277.1				5	%			30	%
Other assets			3,106.4				3,275.0				3,569.7				3,833.3				4,118.2				7	%			33	%
LIABILITIES			89,075.9				98,045.5				109,203.1				116,369.8				132,893.1				14	%			49	%
Deposits			76,521.6				83,772.0				90,939.8				101,899.9				111,939.7				10	%			46	%
From the non-financial government sector			9,588.4				9,197.9				10,548.6				14,531.6				9,552.2				-34	%			0	%
From the financial sector			40.1				41.1				44.4				42.0				55.8				33	%			39	%
From the non-financial private sector and foreign residents			66,893.1				74,533.0				80,346.8				87,326.3				102,331.7				17	%			53	%
-Checking accounts			14,062.9				15,381.4				16,796.4				17,777.6				17,686.2				-1	%			26	%
-Savings accounts			15,507.9				15,836.7				19,406.5				19,850.3				27,896.0				41	%			80	%
-Time deposits			34,719.8				40,359.4				41,108.1				46,146.1				47,652.4				3	%			37	%
-Other			2,602.5				2,955.5				3,035.8				3,552.3				9,097.1				156	%			250	%
Other liabilities from financial intermediation			7,537.4				9,111.0				12,540.1				8,695.7				10,528.5				21	%			40	%
Subordinated corporate bonds			1,957.6				2,248.3				2,245.3				2,352.7				6,407.8				172	%			227	%
Other liabilities			3,059.3				2,914.2				3,477.9				3,421.5				4,017.1				17	%			31	%
SHAREHOLDERS' EQUITY			15,876.1				17,652.2				18,778.0				20,410.6				22,105.9				8	%			39	%
LIABILITIES + SHAREHOLDERS' EQUITY			104,952.0				115,697.7				127,981.1				136,780.4				154,999.0				13	%			48	%

 

 

4Q16 Earnings Release

 

ANNUAL BALANCE SHEET		Macro Consolidated												Variation
In MILLION $		2014				2015				2016				Annual
ASSETS			74,995.6				104,952.0				154,999.0				48	%
Cash			15,434.2				19,402.8				36,089.2				86	%
Government and Private Securities			10,312.5				15,391.4				19,846.3				29	%
-LEBAC/NOBAC			5,729.9				8,303.0				15,145.3				82	%
-Other			4,582.6				7,088.4				4,701.0				-34	%
Loans			43,740.3				62,332.4				87,973.0				41	%
to the non-financial government sector			604.4				748.1				1,532.5				105	%
to the financial sector			213.9				227.4				1,730.6				661	%
to the non-financial private sector and foreign residents			44,108.1				62,852.9				86,540.4				38	%
-Overdrafts			3,385.6				4,707.9				8,837.7				88	%
-Documents			4,627.4				6,550.2				11,198.9				71	%
-Mortgage loans			2,466.1				3,508.5				4,158.6				19	%
-Pledge loans			1,857.1				2,152.6				2,285.1				6	%
-Personal loans			16,120.9				23,231.6				29,784.8				28	%
-Credit cards			9,189.5				14,793.3				18,851.6				27	%
-Other			5,835.2				7,078.5				10,465.8				48	%
-Accrued interest, adjustments, price differences receivables and unearned discount			626.3				830.3				957.9				15	%
Allowances			-1,186.1				-1,496.0				-1,830.5				22	%
Other receivables from financial intermediation			2,349.1				3,295.3				5,313.6				61	%
Receivables from financial leases			384.4				433.9				370.2				-15	%
Investments in other companies			11.2				10.9				11.4				5	%
Other receivables			605.4				978.9				1,277.1				30	%
Other assets			2,158.5				3,106.4				4,118.2				33	%
LIABILITIES			63,503.8				89,075.9				132,893.1				49	%
Deposits			54,716.6				76,521.6				111,939.7				46	%
From the non-financial government sector			8,570.1				9,588.4				9,552.2				0	%
From the financial sector			38.7				40.1				55.8				39	%
From the non-financial private sector and foreign residents			46,107.8				66,893.1				102,331.7				53	%
-Checking accounts			11,896.3				14,062.9				17,686.2				26	%
-Savings accounts			11,013.9				15,507.9				27,896.0				80	%
-Time deposits			21,510.8				34,719.8				47,652.4				37	%
-Other			1,686.8				2,602.5				9,097.1				250	%
Other liabilities from financial intermediation			5,356.7				7,537.4				10,528.5				40	%
Subordinated corporate bonds			1,287.3				1,957.6				6,407.8				227	%
Other liabilities			2,143.2				3,059.3				4,017.1				31	%
SHAREHOLDERS' EQUITY			11,491.8				15,876.1				22,105.9				39	%
LIABILITIES + SHAREHOLDERS' EQUITY			74,995.6				104,952.0				154,999.0				48	%

 

 

4Q16 Earnings Release

 

QUARTERLY INCOME STATEMENT		MACRO consolidated																				Variation
In MILLION  $		4Q15				1Q15				2Q16				3Q16				4Q16				Quarterly				Annualy
Financial income			6,341.1				6,419.2				7,530.6				7,412.9				7,572.6				2	%			19	%
Interest on cash and due from banks			0.1				0.3				0.4				0.4				0.1				-75	%			0	%
Interest on loans to the financial sector			14.1				32.8				55.5				71.8				88.0				23	%			524	%
Interest on overdrafts			397.1				520.3				652.9				670.7				650.5				-3	%			64	%
Interest on documents			350.7				395.4				373.1				390.9				399.7				2	%			14	%
Interest on mortgage loans			169.4				184.9				184.5				183.8				176.6				-4	%			4	%
Interest on pledge loans			102.9				100.5				89.7				84.2				86.3				2	%			-16	%
Interest on credit card loans			737.7				919.3				1,012.6				977.9				1,041.1				6	%			41	%
Interest on financial leases			22.6				23.5				23.9				21.9				20.6				-6	%			-9	%
Interest on other loans			2,568.9				2,784.9				2,921.3				3,157.8				3,333.6				6	%			30	%
Income from government & private securities, net			1,465.2				1,015.6				2,015.7				1,608.5				1,583.0				-2	%			8	%
Interest on other receivables from fin. intermediation			0.5				1.2				1.4				2.0				1.6				-20	%			220	%
Income from Guaranteed Loans - Decree 1387/01			6.6				7.0				7.7				10.1				8.9				-12	%			35	%
CER adjustment			24.9				56.9				64.7				76.6				57.7				-25	%			132	%
CVS adjustment			0.3				0.2				0.2				0.2				0.2				0	%			-33	%
Difference in quoted prices of gold and foreign currency			379.2				258.8				70.8				100.4				86.9				-13	%			-77	%
Other			100.9				117.6				56.2				55.7				37.8				-32	%			-63	%
Financial expense			-2,630.3				-3,153.9				-3,375.7				-3,440.7				-3,330.5				-3	%			27	%
Interest on saving accounts			-20.8				-20.7				-22.9				-22.8				-23.5				3	%			13	%
Interest on time deposits			-2,003.8				-2,453.6				-2,676.6				-2,700.7				-2,452.8				-9	%			22	%
Interest on interfinancing received loans			-1.1				-1.0				-0.1				-0.7				-1.2				71	%			9	%
Interest on other financing from the financial institutions			0.0				-0.1				-0.2				-0.2				0.5				-350	%			0	%
Interest on subordinated bonds			-37.8				-53.6				-51.3				-55.1				-117.2				113	%			210	%
Other Interest			-0.6				-0.9				-1.4				-1.1				-0.8				-27	%			33	%
Interests on other liabilities from fin. intermediation			-26.4				-35.7				-34.9				-36.3				-38.9				7	%			47	%
CER adjustment			-0.9				-3.5				-2.7				-3.0				-2.9				-3	%			222	%
Contribution to Deposit Guarantee Fund			-117.1				-96.4				-35.5				-38.6				-44.5				15	%			-62	%
Other			-421.8				-488.4				-550.1				-582.2				-649.2				12	%			54	%
Net financial income			3,710.8				3,265.3				4,154.9				3,972.2				4,242.1				7	%			14	%
Provision for loan losses			-320.0				-178.2				-298.5				-242.4				-354.0				46	%			11	%
Fee income			1,772.9				1,737.9				1,862.8				2,060.1				2,307.9				12	%			30	%
Fee expense			-524.8				-575.8				-590.2				-662.1				-775.7				17	%			48	%
Net fee income			1,248.1				1,162.1				1,272.6				1,398.0				1,532.2				10	%			23	%
Administrative expenses			-2,003.7				-2,120.9				-2,437.0				-2,598.0				-2,814.8				8	%			40	%
Minority interest in subsidiaries			-9.8				-10.6				-14.7				-12.6				-16.7				33	%			70	%
Net other income			7.7				52.3				100.2				17.4				-52.7				-403	%			-784	%
Earnings before income tax			2,633.1				2,170.0				2,777.5				2,534.6				2,536.1				0	%			-4	%
Income tax			-666.2				-762.4				-972.2				-902.0				-840.8				-7	%			26	%
Net income			1,966.9				1,407.6				1,805.3				1,632.6				1,695.3				4	%			-14	%

 

 

4Q16 Earnings Release

 

ANNUAL INCOME STATEMENT		Macro Consolidated												Variation
In MILLION  $		2014				2015				2016				Annual
Financial income			14,682.6				20,109.1				28,935.3				44	%
Interest on cash and due from banks			0.1				0.2				1.2				500	%
Interest on loans to the financial sector			64.3				88.0				248.1				182	%
Interest on overdrafts			1,338.2				1,407.0				2,494.4				77	%
Interest on documents			960.4				1,146.2				1,559.1				36	%
Interest on mortgage loans			483.1				556.6				729.8				31	%
Interest on pledge loans			274.3				385.0				360.7				-6	%
Interest on credit card loans			1,930.1				2,646.1				3,950.9				49	%
Interest on financial leases			76.3				81.7				89.9				10	%
Interest on other loans			6,272.4				8,811.8				12,197.6				38	%
Income from government & private securities, net			1,974.2				3,985.9				6,222.8				56	%
Interest on other receivables from fin. intermediation			3.5				4.1				6.2				51	%
Income from Guaranteed Loans - Decree 1387/01			40.2				25.1				33.7				34	%
CER adjustment			78.3				58.5				255.9				337	%
CVS adjustment			0.7				0.7				0.8				14	%
Difference in quoted prices of gold and foreign currency			827.6				653.1				516.9				-21	%
Other			358.9				259.1				267.3				3	%
Financial expense			-6,582.5				-8,842.7				-13,300.8				50	%
Interest on saving accounts			-0.5				0.0				0.0				0	%
Interest on time deposits			-49.3				-68.2				-89.9				32	%
Interest on interfinancing received loans			-5,137.2				-6,704.9				-10,283.7				53	%
Interest on other financing from the financial institutions			-1.2				-7.0				-3.0				-57	%
Interest on subordinated bonds			-120.4				-136.2				-277.2				104	%
Other Interest			-3.1				-2.6				-4.2				62	%
Interests on other liabilities from fin. intermediation			-91.7				-96.0				-145.8				52	%
CER adjustment			-9.2				-4.6				-12.1				163	%
Contribution to Deposit Guarantee Fund			-151.0				-418.4				-215.0				-49	%
Other			-1,018.9				-1,404.8				-2,269.9				62	%
Net financial income			8,100.1				11,266.4				15,634.5				39	%
Provision for loan losses			-664.9				-877.1				-1,073.1				22	%
Fee income			4,655.8				6,115.4				7,968.7				30	%
Fee expense			-1,215.7				-1,714.8				-2,603.8				52	%
Net fee income			3,440.1				4,400.6				5,364.9				22	%
Administrative expenses			-5,498.9				-7,225.9				-9,970.7				38	%
Minority interest in subsidiaries			-23.5				-35.4				-54.6				54	%
Net other income			88.8				-33.0				117.2				-440	%
Earnings before income tax			5,441.7				7,495.6				10,018.2				34	%
Income tax			-1,962.2				-2,485.7				-3,477.4				40	%
Net income			3,479.5				5,009.9				6,540.8				31	%

 

 

4Q16 Earnings Release

 

QUARTER ANNUALIZED RATIOS		MACRO consolidated
		4Q15				1Q15				2Q16				3Q16				4Q16
Profitability & performance
Net interest margin (1)			19.6	%			16.7	%			20.7	%			18.0	%			17.7	%
Net interest margin adjusted (2)			15.4	%			15.2	%			15.3	%			15.0	%			15.6	%
Net fee income ratio			25.2	%			26.2	%			23.4	%			26.0	%			26.5	%
Efficiency ratio			40.4	%			47.9	%			44.9	%			48.4	%			48.7	%
Net fee income as a percentage of adm expenses			62.3	%			54.8	%			52.2	%			53.8	%			54.4	%
Return on average assets			8.0	%			5.1	%			6.2	%			5.0	%			4.6	%
Return on average equity			51.6	%			33.4	%			39.8	%			32.6	%			31.2	%
Liquidity
Loans as a percentage of total deposits			83.4	%			76.0	%			79.9	%			77.2	%			80.2	%
Liquid assets as a percentage of total deposits			38.4	%			44.4	%			41.0	%			44.7	%			47.6	%
Capital
Total equity as a percentage of total assets			15.1	%			15.3	%			14.7	%			14.9	%			14.3	%
Regulatory capital as % of APR			14.6	%			16.4	%			16.2	%			17.3	%			22.1	%
Asset Quality
Allowances over total loans			2.3	%			2.4	%			2.4	%			2.3	%			2.0	%
Non-performing financing as a percentage of total financing			1.5	%			1.5	%			1.5	%			1.5	%			1.1	%
Coverage ratio w/allowances			151.0	%			151.5	%			150.5	%			155.1	%			176.5	%

 

(1) Net interest margin excluding difference in quote in foreign currency

(2) Net interest margin (excluding difference in quote in foreign currency) except income from government & private securities and guaranteed loans

 

ACCUMULATED ANNUALIZED RATIOS		MACRO consolidated
		4Q15				1Q15				2Q16				3Q16				4Q16
Profitability & performance
Net interest margin (1)			17.9	%			16.7	%			18.8	%			18.5	%			18.2	%
Net interest margin adjusted (2)			15.6	%			15.2	%			15.3	%			15.2	%			15.3	%
Net fee income ratio			28.1	%			26.2	%			24.7	%			25.2	%			25.5	%
Efficiency ratio			46.1	%			47.9	%			46.3	%			47.0	%			47.5	%
Net fee income as a percentage of adm expenses			60.9	%			54.8	%			53.4	%			53.6	%			53.8	%
Return on average assets			5.8	%			5.1	%			5.7	%			5.4	%			5.2	%
Return on average equity			37.2	%			33.4	%			36.7	%			35.2	%			34.1	%
Liquidity
Loans as a percentage of total deposits			83.4	%			76.0	%			79.9	%			77.2	%			80.2	%
Liquid assets as a percentage of total deposits			38.4	%			44.4	%			41.0	%			44.7	%			47.6	%
Capital
Total equity as a percentage of total assets			15.1	%			15.3	%			14.7	%			14.9	%			14.3	%
Regulatory capital as % of APR			14.6	%			16.4	%			16.2	%			17.3	%			22.1	%
Asset Quality
Allowances over total loans			2.3	%			2.4	%			2.4	%			2.3	%			2.0	%
Non-performing financing as a percentage of total financing			1.5	%			1.5	%			1.5	%			1.5	%			1.1	%
Coverage ratio w/allowances			151.0	%			151.5	%			150.5	%			155.1	%			176.5	%

 

(1) Net interest margin excluding difference in quote in foreign currency

(2) Net interest margin (excluding difference in quote in foreign currency) except income from government & private securities and guaranteed loans

 

 

4Q16 Earnings Release

 

ACCUMULATED ANNUALIZED RATIOS		MACRO consolidated
		2014				2015				2016
Profitability & performance
Net interest margin (1)			15.7	%			17.9	%			18.2	%
Net interest margin adjusted (2)			14.9	%			15.6	%			15.3	%
Net fee income ratio			29.8	%			28.1	%			25.5	%
Efficiency ratio			47.7	%			46.1	%			47.5	%
Net fee income as a percentage of adm expenses			62.6	%			60.9	%			53.8	%
Return on average assets			5.1	%			5.8	%			5.2	%
Return on average equity			33.4	%			37.2	%			34.1	%
Liquidity
Loans as a percentage of total deposits			82.1	%			83.4	%			80.2	%
Liquid assets as a percentage of total deposits			40.6	%			38.4	%			47.6	%
Capital
Total equity as a percentage of total assets			15.3	%			15.1	%			14.3	%
Regulatory capital as % of APR			16.1	%			14.6	%			22.1	%
Asset Quality
Allowances over total loans			2.6	%			2.3	%			2.0	%
Non-performing financing as a percentage of total financing			1.9	%			1.5	%			1.1	%
Coverage ratio w/allowances			135.3	%			151.0	%			176.5	%

 

(1) Net interest margin excluding difference in quote in foreign currency

(2) Net interest margin (excluding difference in quote in foreign currency) except income from government & private securities and guaranteed loans

 

 

SIGNATURE

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereto duly authorized.

 

Date: February 15, 2017

 

	MACRO BANK INC.
	By:	/s/ Jorge Francisco Scarinci
	Name: Jorge Francisco Scarinci
	Title: Finance Manager