Banco Macro ((BMA)) has held its Q3 earnings call. Read on for the main highlights of the call.
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Banco Macro’s recent earnings call painted a mixed picture of the company’s financial health. While there was notable growth in loans, interest income, and deposits, these positive developments were overshadowed by significant losses, increased loan loss provisions, decreased net interest margins, and deteriorating asset quality. This duality of progress and challenges was a central theme throughout the call.
Loan Growth
In the third quarter of 2025, Banco Macro reported a substantial increase in its total financial assets, reaching ARS 10.1 trillion. This represented a 3% growth quarter-on-quarter and a remarkable 69% increase year-on-year. Loans to the private sector also saw a significant rise of 67% year-on-year, underscoring the bank’s expansion in lending activities.
Interest Income on Loans
Banco Macro’s income from interest on loans and other financing reached ARS 930.3 billion, marking an 18% increase from the previous quarter and a 74% rise year-on-year. This growth in interest income highlights the bank’s ability to capitalize on its expanding loan portfolio.
Deposit Growth
The bank’s total deposits increased by 5% quarter-on-quarter, totaling ARS 11.8 trillion, and saw an 11% rise year-on-year. Deposits from the private sector grew by 6% quarter-on-quarter, reflecting a strong confidence in the bank’s stability and services.
Capital Adequacy
Banco Macro maintained a robust capital position with an excess capital of ARS 3.3 trillion. The capital adequacy ratio stood at 29.9%, and the Tier 1 ratio was 29.2%, indicating a solid foundation to support future growth and absorb potential losses.
Net Income Loss
Despite the positive growth metrics, Banco Macro reported a net income loss of ARS 33.1 billion for Q3 2025, which was ARS 191.5 billion lower than the previous quarter. This significant loss highlights the challenges the bank faces in balancing growth with profitability.
Increase in Loan Loss Provisions
The provision for loan losses surged to ARS 156.8 billion, a 45% increase from the second quarter of 2025 and a staggering 424% rise year-on-year. This increase reflects the bank’s cautious approach in managing potential defaults and maintaining financial stability.
Decrease in Net Interest Margin
Banco Macro’s net interest margin, including foreign exchange, fell to 18.7%, down from 23.5% in the second quarter of 2025 and 31.5% in the third quarter of 2024. This decline indicates pressure on the bank’s profitability from its core lending activities.
Deterioration of Asset Quality
The bank’s asset quality showed signs of deterioration, with the nonperforming total finance ratio reaching 30.2%. The consumer portfolio’s nonperforming loans increased to 4.3% from 2.81% in the previous quarter, signaling potential challenges in credit risk management.
Guidance and Outlook
Looking ahead, Banco Macro outlined its expectations for 2026, forecasting a 35% growth in loans and a 25% increase in deposits in real terms. The bank anticipates a return on equity in the low tens, despite recent setbacks. The bank’s market share in private sector loans stood at 9% as of September 2025, with a liquidity ratio of 67% for liquid assets to total deposits, indicating a strong liquidity position.
In summary, Banco Macro’s earnings call revealed a complex financial landscape, with significant growth in key areas such as loans and deposits, yet facing substantial challenges in profitability and asset quality. The bank’s forward-looking guidance suggests optimism for future growth, albeit with cautious expectations. Investors and stakeholders will be keenly watching how Banco Macro navigates these dual realities in the coming quarters.