Banco Macro S.A. (NYSE:BMA) Q3 2022 Earnings Conference Call November 28, 2022 11:00 AM ET

Company Participants

Nicolas Torres - Investor Relations

Jorge Scarinci - Chief Financial Officer

Conference Call Participants

Alonso Garcia - Credit Suisse

Nicolas Riva - Bank of America

Alejandra Aranda - Itau

Carlos Gomez - HSBC

Santiago Petri - Franklin Templeton

Operator

Good morning ladies and gentlemen, and thank you for waiting. At this time, we would like to welcome everyone to Banco Macro's Third Quarter 2022 Earnings Conference Call. We would like to inform you that this third quarter 2022 press release is available to download at the Investor Relations website at www.macro.com.ar/relaciones-inversores. Also, this event is also being recorded and all participants will be in a listen-only mode during the company’s presentation. [Operator Instructions] It is now my pleasure to introduce our speakers. Joining us from Argentina are Mr. Gustavo Manriquez, Chief Executive Officer; Mr. Jorge Scarinci, Chief Financial Officer, Mr. Nicolas Torres, Investor Relations.

Now, I would like to turn the conference over to Mr. Nicolas Torres. You may begin your conference, sir.

Nicolas Torres

Thank you. Good morning, and welcome to Banco Macro's third quarter 2020 conference call. Any comments we may make today may include forward-looking statements, which are subject to various conditions, and these are outlined in our 20-F, which was filed to the SEC and is available at our website. Third quarter 2022 press release was distributed last Wednesday and it’s also 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 2020, the bank began reporting results applying hyperinflation accounting in accordance with IFRS IAS 29 as established by the Central Bank of Argentina. For ease of comparison, figures of previous quarters have been restated applying IAS 29 to reflect the accumulated effect of the inflation adjustment for each period through September 30, 2022.

I will now briefly comment on the bank's third quarter 2022 financial results. Banco Macro's net income for the quarter was ARS8.9 billion, 76% higher than the second quarter of 2022 and 34% lower than the result posted a year ago. As of the third quarter of 2022 the bank's accumulated annualized ROE and ROA of 7.7% and 1.9%, respectively, remained healthy and showed the bank's earnings potential.

Net operating income before general and personnel expenses in the third quarter of 2020 was ARS122 billion, 22% or [ARS22 billion] [ph] higher quarter-on-quarter due to higher income from financial instruments at fair value [to profit] [ph] or loss and higher FX gains. On a yearly basis, net operating income increased 54% or ARS42.6 billion due to higher income from financial instruments at fair value for profit and loss and higher FX gains.