Banco Macro S.A. (NYSE:BMA) Q2 2022 Earnings Conference Call August 25, 2022 11:00 AM ET

Company Participants

Nicolas Torres - Investor Relations

Jorge Scarinci - Chief Financial Officer

Conference Call Participants

Ernesto Gabilondo - Bank of America Merrill Lynch

Nicolas Riva - Bank of America Merrill Lynch

Operator

Good morning, ladies and gentlemen, and thank you for waiting. At this time, we would like to welcome everyone to Banco Macro's Second Quarter 2022 Earnings Conference Call. We would like to inform you that the 2Q '22 press release is available to download at the Investor Relations website of Banco Macro, www.macro.com.ar/relaciones-inversores. Also, this event is being recorded. And all participants’ will be in listen-only mode during the company’s presentation. After the company’s remarks are completed, there will be a question-and-answer session. At that time further instructions will be given. [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; 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. Good morning, and welcome to Banco Macro’s second quarter 2022 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 it's available at our website. Second quarter 2022 press release was distributed yesterday 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 June 30, 2022.

I will now briefly comment on the Bank's second quarter 2022 financial results. Banco Macro's net income for the quarter was ARS4 billion, 41% lower than the first quarter of 2021 and 45% lower than the result posted a year ago. The bank's second quarter 2022 annualized ROE and ROA of 5.1% and 1.3%, respectively, remained healthy and showed the Bank's earnings potential.

Net operating income before general and administrative and personnel expenses for the second quarter of 2022 was ARS81.3 billion, ARS6 billion higher quarter-on-quarter, due to higher net interest income and higher FX gains. On a yearly basis, net operating income increased 26% or ARS16.6 billion due to higher net interest income and higher net fee income.