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Banco Macro (BMA)
:BMA
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Banco Macro SA
(NYSE:BMA)
Rating:74Outperform
Price Target:―
Banco Macro SA (BMA) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$4.65B
Dividend Yield3.21%
Average Volume (3M)328.75K
Price to Earnings (P/E)1013.1
Beta (1Y)0.96
Revenue Growth-46.30%
EPS Growth-79.35%
CountryUS
Employees9,004
SectorFinancial
Sector Strength64
IndustryBanks - Regional
Share Statistics
EPS (TTM)0.60
Shares Outstanding62,817,800
10 Day Avg. Volume336,390
30 Day Avg. Volume328,750
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)0.00
Price to Sales (P/S)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap0.80
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$125.00Price Target Upside71.61% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering0
Banco Macro SA Business Overview & Revenue Model
Company DescriptionBanco Macro SA (BMA) is a leading financial institution in Argentina, offering a wide range of banking products and services. It operates in the financial services sector, providing personal and commercial banking solutions. Core services include savings and checking accounts, personal and business loans, credit cards, and investment products. Banco Macro is known for its extensive network of branches and ATMs across Argentina, catering to both individual and corporate clients.
How the Company Makes MoneyBanco Macro SA generates revenue primarily through interest income from loans and credit products, including personal, mortgage, and commercial loans. Another significant source of income is fee-based services, such as transaction fees, account maintenance fees, and fees from investment products. The bank also earns from the spread between interest earned on loans and paid on deposits. Banco Macro has established partnerships with various businesses and institutions to enhance its service offerings and reach a broader customer base, contributing to its financial performance.
Banco Macro SA Earnings Call Summary
Earnings Call Date:May 28, 2025
(Q1-2025)
| % Change Since: -18.39%|
Next Earnings Date:Aug 20, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed picture for Banco Macro. While the bank demonstrated solid loan growth and maintained a strong capital position, significant challenges were evident in the form of decreased net income, increased loan loss provisions, and lower interest and FX income. The bank's financial health is stable, but there are areas that require attention.Q1-2025 Updates
Positive Updates
Net Income Performance
Banco Macro's net income totaled ARS45.7 billion in the first quarter of 2025. Although this is a decrease from the previous quarter, it represents continued profitability despite challenging conditions.
Net Interest Income Growth
Net interest income totaled ARS579.2 billion, which is ARS1 billion higher than the fourth quarter of 2024 and represents a 122% year-on-year increase.
Loan Growth
Private sector loans increased by 22% quarter-on-quarter and 94% year-on-year. The bank's total financing reached ARS7.7 trillion, reflecting robust loan demand.
Efficiency Ratio Improvement
The efficiency ratio improved to 38.2% from 39.4% in the previous quarter, indicating better cost management.
Strong Capitalization
Banco Macro reported an excess capital of ARS3.2 trillion, with a capital adequacy ratio of 34.3% and a Tier 1 ratio of 33.6%.
Negative Updates
Significant Decrease in Net Income Compared to Previous Quarter
Net income was 59% lower than in the fourth quarter of 2024, primarily due to lower net income from financial assets and liabilities at fair value through profit or loss.
Provision for Loan Losses Increase
Provision for loan losses increased by 62% quarter-on-quarter and 124% year-on-year, reflecting higher risk associated with loan growth.
Interest Income Decline
Interest income totaled ARS866.7 billion, which is 3% lower than the previous quarter and 22% lower than the same period last year.
Decreased FX Income
FX income was 95% lower than a year ago, impacted by the depreciation of the Argentine peso against the US dollar.
Company Guidance
In the first quarter of 2025 earnings call, Banco Macro provided guidance on several financial metrics. The bank expects real loan growth of 60% and deposit growth of 45% for the year. They anticipate a return on equity (ROE) between 8% to 10%, adjusted based on bond price fluctuations, with a capital adequacy ratio forecasted to be in the range of 28% to 29% by year-end. The bank's net interest margin, including foreign exchange, was reported at 23.2%, lower than previous quarters. Despite a decrease in net income due to lower financial asset income and higher inflation, the bank maintained a strong capital position with a Tier 1 ratio of 33.6%. Banco Macro's non-performing loan ratio was 1.44%, with a coverage ratio of 163.34%. The bank's market share over private sector loans was 9.5%, while its market share over private deposits stood at 7.8%. They also highlighted their strategic focus on organic growth, while remaining open to potential M&A opportunities in the future.Banco Macro SA Financial Statement Overview
Summary
Banco Macro SA exhibits strong financial performance, particularly in terms of profitability and revenue growth. The balance sheet is stable with a solid equity base, though rising liabilities could pose a risk if not managed properly. Cash flow management appears to be an area for improvement, as recent declines may affect liquidity. Overall, the company is in a strong financial position, but should focus on enhancing cash flow stability and managing liabilities.Income Statement
Banco Macro SA demonstrates strong revenue growth, with total revenue increasing significantly over the years. The gross profit margin is exceptionally high, indicating efficient cost management. However, the net profit margin shows fluctuations, suggesting some volatility in managing expenses or other income sources. Overall, the income statement reflects a robust financial performance with high profitability metrics.88
Very Positive
Balance Sheet
The balance sheet shows a healthy equity position with a relatively low debt-to-equity ratio, indicating strong financial stability. The equity ratio is also strong, reflecting a solid capital structure. However, there is a noticeable increase in total liabilities over the years, which could indicate rising obligations. Overall, the balance sheet is solid, but attention to liability management is advisable.75
Positive
Cash Flow
The company's cash flow statement reveals fluctuations in operating cash flow, with a notable decline in the latest year. Free cash flow has also decreased recently, indicating potential challenges in maintaining liquidity. Despite the past strong free cash flow, recent trends suggest the need for improved cash flow management to support ongoing operations and investments.70
Positive
| Breakdown | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 6.46T | 3.15B | 1.51T | 1.13T | 409.07B |
| Gross Profit | 4.41T | 2.83T | 1.51T | 1.13T | 409.07B |
| EBITDA | 498.16B | 772.19B | 47.23B | 35.79B | 12.82B |
| Net Income | 325.50B | 587.32B | 126.95B | 138.74B | 76.90B |
Balance Sheet | |||||
| Total Assets | 14.49T | 6.72T | 6.51T | 1.95T | 1.17T |
| Cash, Cash Equivalents and Short-Term Investments | 3.21T | 1.20T | 1.21T | 335.69B | 196.18B |
| Total Debt | 446.45B | 396.48B | 239.19B | 90.36B | 60.98B |
| Total Liabilities | 10.44T | 4.67T | 280.10B | 102.52B | 72.23B |
| Stockholders Equity | 4.05T | 2.04T | 1.59T | 466.72B | 228.74B |
Cash Flow | |||||
| Free Cash Flow | 794.07B | -142.30B | 1.54T | 229.96B | 341.09B |
| Operating Cash Flow | 918.59B | -85.23B | 1.61T | 271.77B | 351.90B |
| Investing Cash Flow | -133.69B | -951.69B | -75.77B | -42.03B | -10.81B |
| Financing Cash Flow | -592.03B | -56.91M | -77.79B | -52.64B | -20.05B |
Banco Macro SA Technical Analysis
Positive
72.84
Price Trends
72.65
Positive
78.52
Negative
84.13
Negative
Market Momentum
-0.23
Negative
55.58
Neutral
50.70
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BMA, the sentiment is Positive. The current price of 72.84 is above the 20-day moving average (MA) of 68.10, above the 50-day MA of 72.65, and below the 200-day MA of 84.13, indicating a neutral trend. The MACD of -0.23 indicates Negative momentum. The RSI at 55.58 is Neutral, neither overbought nor oversold. The STOCH value of 50.70 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BMA.
Banco Macro SA Risk Analysis
Banco Macro SA disclosed 38 risk factors in its most recent earnings report. Banco Macro SA reported the most risks in the "Macro & Political" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 2 New Risks
1.
The Argentine economy has experienced significant volatility in recent decades, characterized by periods of low or negative growth, high levels of inflation and currency devaluation. Q4, 2023
2.
The occurrence of any of the above may have a material adverse effect on our business, results of operations, cash flow or financial condition. Q4, 2023
Banco Macro SA Peers Comparison
Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $3.00B | 12.42 | 9.40% | 4.38% | -2.63% | 12.05% | |
75 Outperform | $11.87B | 13.12 | 15.99% | 14.57% | -5.45% | 3.43% | |
74 Outperform | $4.65B | 1,013.14 | 0.11% | 3.21% | -46.30% | -79.35% | |
74 Outperform | $3.40B | 8.62 | 15.46% | 3.37% | -48.81% | 0.18% | |
71 Outperform | $0.00 | 5.31 | 28.17% | 2.25% | -35.65% | 70.23% | |
68 Neutral | $1.43B | 6.80 | 16.45% | 5.72% | 8.33% | 13.48% | |
65 Neutral | £5.09B | 9.37 | 5.51% | 4.87% | 24.62% | -23.11% |
* Financial Sector Average
Performance Comparison
BMA
Banco Macro SA
72.84
27.31
59.98%
BLX
Banco Latinoamericano De Comercio
40.84
13.92
51.71%
CIB
Bancolombia
44.94
18.57
70.42%
BBAR
Banco BBVA Argentina
16.40
8.27
101.72%
GGAL
Grupo Financiero Galicia SA
50.95
23.09
82.88%
FHB
First Hawaiian
24.04
2.06
9.37%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.