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Banco Macro SA (BMA)
NYSE:BMA
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Banco Macro SA (BMA) AI Stock Analysis

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BMA

Banco Macro SA

(NYSE:BMA)

Rating:74Outperform
Price Target:―
Banco Macro's overall score reflects a balance of strong profitability and revenue growth against challenges in cash flow management and rising liabilities. The technical indicators show positive momentum, and the stock presents a fair valuation with an attractive dividend yield. The mixed results from the earnings call highlight the need to improve efficiency and manage loan loss provisions effectively. Despite these challenges, the bank's strong market position and capitalization provide a positive outlook for future growth.

Banco Macro SA (BMA) vs. SPDR S&P 500 ETF (SPY)

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: -32.42%|
Next Earnings Date:Aug 27, 2025
Earnings Call Sentiment Neutral
Banco Macro demonstrated strong loan growth and maintained a robust capital position, but faced significant challenges with a decreased net income and increased loan loss provisions. The efficiency ratio improved, yet income from government securities and net interest margins declined.
Q1-2025 Updates
Positive Updates
Loan Growth and Market Share Increase
Banco Macro's total financing reached ARS7.7 trillion, increasing 22% quarter-on-quarter and 97% year-on-year. The bank's market share over private sector loans as of March 2025 reached 9.5%.
Strong Capitalization and Liquidity
Banco Macro accounted for an excess capital of ARS3.2 trillion, representing a capital adequacy ratio of 34.3% and a Tier 1 ratio of 33.6%. Liquid assets during deposit ratio reached 68%.
Private Sector Loan Growth
Private sector loans increased 22% quarter-on-quarter and 94% year-on-year, with significant increases in personal loans (28%) and credit card loans (4%).
Improved Efficiency Ratio
The efficiency ratio reached 38.2%, improving from the 39.4% posted in the fourth quarter of 2024.
Negative Updates
Significant Decrease in Net Income
Net income totaled ARS45.7 billion, which was 59% lower than the fourth quarter of 2024, mainly due to lower net income from financial assets and liabilities and a bigger loss related to the net monetary position.
Decreased Income from Government Securities
Income from government and private securities decreased 21% quarter-on-quarter and 83% year-on-year.
Increased Provision for Loan Losses
Provision for loan losses totaled ARS66 billion, 62% higher than the fourth quarter of 2024 and 124% higher year-on-year.
Decline in Net Interest Margin
The Bank's net interest margin, including FX, was 23.2%, lower than the 24.7% posted in the fourth quarter of 2024 and the 26.1% posted in the first quarter of 2024.
Company Guidance
During Banco Macro's first quarter 2025 earnings call, several key metrics were highlighted as part of their financial performance and forward guidance. The bank reported a net income of ARS45.7 billion, a significant 59% decrease from the previous quarter, largely attributed to lower net income from financial assets and liabilities and increased inflation-related losses. Despite this, net interest income rose by 122% year-on-year, reaching ARS579.2 billion. The bank's annualized return on equity was 3.8%, with a return on average assets at 1.2%. Provision for loan losses surged by 62% from the previous quarter, totaling ARS66 billion, driven by loan growth. The efficiency ratio improved slightly to 38.2%, although it was higher than the previous year's 14.7%. Banco Macro's capital adequacy remained robust with a capital ratio of 34.3% and a Tier 1 ratio of 33.6%. Looking ahead, the bank maintained its 60% real loan growth target for 2025, revised deposit growth expectations to 45%, and adjusted its ROE forecast to between 8% and 10%. The bank also expressed a willingness to explore future M&A opportunities, leveraging its strong capital position. Overall, Banco Macro emphasized a solid financial position with a focus on optimizing deposit bases and monitoring asset quality.

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
88
Very Positive
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.
Balance Sheet
75
Positive
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.
Cash Flow
70
Positive
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue6.46T3.15B1.51T1.13T409.07B
Gross Profit4.41T2.83T1.51T1.13T409.07B
EBITDA498.16B772.19B47.23B35.79B12.82B
Net Income325.50B587.32B126.95B138.74B76.90B
Balance Sheet
Total Assets14.49T6.72T6.51T1.95T1.17T
Cash, Cash Equivalents and Short-Term Investments3.21T1.20T1.21T335.69B196.18B
Total Debt446.45B396.48B239.19B90.36B60.98B
Total Liabilities10.44T4.67T280.10B102.52B72.23B
Stockholders Equity4.05T2.04T1.59T466.72B228.74B
Cash Flow
Free Cash Flow794.07B-142.30B1.54T229.96B341.09B
Operating Cash Flow918.59B-85.23B1.61T271.77B351.90B
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

Technical Analysis Sentiment
Negative
Last Price60.00
Price Trends
50DMA
68.98
Negative
100DMA
76.60
Negative
200DMA
83.33
Negative
Market Momentum
MACD
-1.52
Positive
RSI
33.14
Neutral
STOCH
8.85
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BMA, the sentiment is Negative. The current price of 60 is below the 20-day moving average (MA) of 69.63, below the 50-day MA of 68.98, and below the 200-day MA of 83.33, indicating a bearish trend. The MACD of -1.52 indicates Positive momentum. The RSI at 33.14 is Neutral, neither overbought nor oversold. The STOCH value of 8.85 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 (68)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
81
Outperform
$13.20B14.1316.25%13.19%-8.82%4.87%
76
Outperform
$1.61B7.7016.45%5.47%3.46%12.88%
74
Outperform
$3.86B956.790.11%1.27%-62.73%-99.74%
72
Outperform
$3.15B13.189.40%4.08%-2.56%12.05%
71
Outperform
$7.34B4.8828.17%2.73%-42.73%22.18%
69
Neutral
$2.62B9.0613.26%0.18%-47.41%-18.95%
68
Neutral
$17.60B11.9310.30%3.77%9.67%0.38%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
BMA
Banco Macro SA
60.00
7.83
15.01%
BLX
Banco Latinoamericano De Comercio
46.14
16.98
58.23%
CIB
Bancolombia
50.19
21.69
76.11%
BBAR
Banco BBVA Argentina
12.79
3.34
35.34%
GGAL
Grupo Financiero Galicia SA
41.55
6.88
19.84%
FHB
First Hawaiian
25.31
2.34
10.19%
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.Date of analysis: May 02, 2025