Banco Macro S.A. (NYSE:BMA) Q1 2023 Earnings Conference Call May 18, 2023 11:00 AM ET

Company Participants

Nicolas Torres - Investor Relations

Gustavo Manriquez - Chief Executive Officer

Jorge Scarinci - Chief Financial Officer

Conference Call Participants

Brian Flores - Citibank

Ernesto Gabilondo - Bank of America

Yuri Fernandes - JPMorgan

Carlos Gomez - HSBC

Rodrigo Nistor - Latin Securities

Operator

Good morning, ladies and gentlemen, and thank you for waiting. At this time, we would like to welcome everyone to Banco Macro’s 1Q ‘23 Earnings Conference Call. We would like to inform you that 1Q ‘23 press release is available to download at the Investor Relations website of Banco Macro at www.macro.com.ar/relaciones-inversores. [Operator Instructions]

It is now my pleasure to introduce our speakers joining from Argentina, are Mr. Gustavo Manriquez, Chief Executive Officer; and Mr. Jorge Scarinci, Chief Financial Officer; and Mr. Nicolas Torres, IR.

Now I will turn the conference over to Mr. Nicolas Torres. You may begin your conference.

Nicolas Torres

Thank you, Anthony. Good morning, and welcome to Banco Macro’s first quarter 2023 conference call. Any comments we may make today may include forward-looking statements, which are subject to various conditions, and these are outlined in the 20-F, which was filed to the SEC, and it’s available at our website. First quarter 2023 press release was distributed yesterday, and it’s available at our website. All figures are in Argentine pesos and have been restated in terms of the measuring unit current at the end of the reporting period.

As of the first quarter of 2020, the bank began reporting results applying hyperinflation accounting in accordance with IFRS IAS 29 as established by the Central Bank of Argentina. For recent comparison, figures of previous quarters have been restated assigned IAS 29 to reflect the estimated effect of the inflation adjustment for each period through March 31, 2023.

I will now briefly comment on the bank’s first quarter 2023 financial results. Banco Macro’s net income for the quarter was ARS9.8 billion, 52% lower than the fourth quarter of 2022 and 20% lower than the result posted a year ago. The bank’s first quarter 2023 ROE and ROA of 8.2% and 1.7%, respectively, remained healthy and showed the bank’s earnings potential. Net operating income before general, administrative and personnel expenses for the first quarter of 2023 was ARS167.8 billion, increasing 5% or ARS8 billion quarter-on-quarter due to higher income from financial instruments at fair value to profit or loss and higher net fee income. On a yearly basis, net operating income before general, administrative and personnel expenses increased 28% or ARS36.8 billion.