Slide 1: Investor Relations
macro.com.ar May 2024 INVESTOR RELATIONS
Slide 2: Disclaimer
Company Representatives Jorge Scarinci, CFA Nicolás A. Torres Chief Financial Officer Investor Relations DICLAIMER The information contained in this presentation is confidential and has been Inflation changes in interest rates and the cost of deposits government prepared solely for informational pur
Slide 3: Agenda
Agenda 01 Section I 02 Section II Argentina’s Macro and Political Context Banco Macro Business Overview 03 Section III 04 Section IV Banco Macro Financial Banco Macro Strengths Performance and Opportunites 05 Section V Banco Macro Strategy and Digitalization 3
Slide 4: Section I: Argentina's Macro & Political Context
SECTION I Argentina’s Macro & Political Context 4
Slide 5: Milei received a troubled and imbalanced economy
Milei received a troubled and imbalanced economy, with a lot of challenges • No International reserves • Overvalued fx. and an important gap between the oficial fx and Blue chip swap • High Inflation • Huge fiscal deficit • No Access to International debt markets • Over a decade of no growth in real
Slide 6: Key issues to reignite the economy
Key issues to reignite the economy • Initial political measures (Good start) • Accumulating International Reserves: Devaluation Fx. and import controls • Reducing the fiscal deficit • Structural Reforms. Executive Order (DNU) + B.A.S.E.S Law • Agreement with the I.M.F • Second stage plan • Fight aga
Slide 7: S.W.O.T Analysis: Milei's program
S.W.O.T Analysis: Milei’s program Strengths Opportunities • Structural reforms • Harvest better than in 2023 • Fiscal surplus • Lower International interest rates Weaknesses Threats • Unclear monetary policy • Official fx / Blue chip swap gap • Unclear fx policy • Commodities prices • Negative Inter
Slide 8: LLA faces a challenge in Congress
LLA faces a challenge in Congress Senate House of Representatives Composition Composition UxP UxP JxC JxC LLA LLA Others Others 24 94 34 107 8 38 6 18 Source: Econviews based on CNE Source: Ecoviews based on CNE 8 8
Slide 9: Net International Reserves have improved but remain negative
Net International Reserves have improved over the last months, but continue to be negative Net International Reserves International Reserves USD Milllions USD Millions Gross International Reserves 27,751 USD Deposits Reserve Requirements 9,316 Swap with PBOC (China) 18,053 SEDESA (Insurance on depos
Slide 10: Money demand decreased in recent years
Money demand decreased in recent years Monetary base Monetary Reserves in real terms Average as % Quarterly GDP AR$ Billions (constant prices feb24) Source: Econviews based on BCRA data Source: Econviews based on BCRA data 10 10
Slide 11: Higher inflation proved useful to erode BCRA's liabilities
Higher inflation proved useful to erode BCRA’s liabilities BCRA remunerated liabilities BCRA remunerated liabilities Monthly Average- AR$ billions constant prices feb-24 as % of total liabilities Pases Pasivos Lebac + Nobac Leliq + Notaliq Lediv + Boperal Leliq + Notaliq Pases Lediv + Bopreal Source
Slide 12: Real fx. improved after the December 2023 devaluation
Real fx. Improved after the December 2023 devaluation, but could worsen due to inflation Multilateral Real Fx. Constant Prices feb24- Monthly Average as of March 4 12 Source: Econviews based on Reuters and BCRA data 12
Slide 13: Real fx. improved after the December 2023 devaluation
Real fx. Improved after the December 2023 devaluation, but could worsen due to inflation An overvalued fx can help in containing Multilateral real Fx. inflation, but could lead to difficulties on the December 17,2015 = 100 fiscal front due to import tariffs and the accumulation of International rese
Slide 14: Official fx / Blue chip swap gap decreased significantly
Official fx / Blue chip swap gap decreased significantly, now near 25% Official Fx / Blue Chip swap Againsta official fx % - Bid-Ask average price 14 Source: Econviews based on Reuters data 14
Slide 15: Recession in 2024, but 2025 can be quite positive
Recession in 2024, but 2025 can be quite positive Real GDP Harvest in 2024 will be better than last YoY change , 2004=100 year and will help in offsetting the decline of real GDP, however for most people it will feel a lot worse than -3% and that can lead to governability problems. 15 Source: Econvi
Slide 16: Is 0% deficit achievable in 2024?
Is 0% deficit achivable in 2024? National Government Fiscal balance As % of GDP - Fiscal balance Primary balance 16 Source: Econviews based on Ministerio de Economía data 16
Slide 17: Section II: Banco Macro Business Overview
SECTION II Banco Macro Business Overview 17
Slide 18: Macro in a Nutshell
Macro in a Nutshell 01 A LeadingPrivate Sector 02 Presence in Fast Bank in Argentina Growing Segments 03 Strong Profitability 04 Diversified Loan Portfolio & Returns & Prudent Risk Management 05 Robust Liquidity & Capital Ratios 18
Slide 19: A successful business model & strategic focus
A successful business model & strategic focus Jujuy (18) Banco Macro Strategy ➡ Enhanced business model to increase efficiency and cross selling Salta (38) Formosa Misiones (36) Catamarca Tucumán (1) (43) Chaco(2) capabilities. Santiago del Estero(2) La Rioja Santa Fé Santiago del (2) (106) Estero(2
Slide 20: A successful business model & strategic focus
A Successful business model & Strategic focus Business Model Fast Growth Payroll Accounts Export Driven Small & Mid-Sized Companies Under-served Nationwide Improving Wealth Distribution Low & Presence Provincial Low & Mid-Income Goverments Mid-Income Individuals Individuals Stable Deposits 020 20
Slide 21: A successful growth story
A successful growth story 45 years of experience in the Argentine Financial System 2023 2023 Assets (Ps. Mm) 3,708,274 2018 Banco Itaú 2017 Acquisition Branches 460 2016 Braches 460 2015 Assets Ps. 2014 Million 6,719,072 2013 2012 2011 2010 Banco Privado de Inversiones 2009 Merger Nuevo Banco Bisel
Slide 22: A unique branch network
A unique branch network Largest private sector branch network in Argentina and exclusive Financial agente in 4 provinces Strongest presence outside Buenos Aires² Branches Macro 80% 14% 6% 460 Nación 60% 30% 10% 640 Supervielle 38% 39% 23% 183 Patagonia 48% 26% 26% 193 Credicoop 44% 37% 19% 285 460 B
Slide 23: An increasing branch network in Buenos Aires
An increasing branch network in Buenos Aires Keep increasing our market share in Buenos Aires City of 6% City of Buenos City of City of Buenos City of Buenos Buenos Aires 31% 32% 24% 23% Aires Buenos Aires Aires Aires Province of 14% Province of Province of Province of Province of Buenos Aires 37% 3
Slide 24: A leading private sector bank in Argentina
A leading Private sector bank in Argentina Assets (Ps Billion - % Market Share) Equity (Ps Billion - % Market Share) 97,538,705 22,397,751 21,288,252 24,143,401 5,522,338 5,280,227 8,682,680 8,673,082 8,577,091 6,059,941 5,851,533 2,044,164 1,653,969 1,501,381 1,406,170 1,367,643 3,965,613 3,965,963
Slide 25: Section III: Banco Macro Financial Performance
SECTION III Banco Macro Financial Performance 25 25
Slide 26: Banco Macro's earnings consistent growth
Banco Macro´s earnings consistent growth Net Income Operating Income 500000 459,865 750000 1100000 1,039,862 2200000 2,023,733 587,655 375000 600000 825000 1650000 450000 250000 550000 1100000 906,776 300000 360,249 125000 134,047 275000 243,465 550000 150000 FY2022 FY2023 FY2023 51,738 11,514 0 0 0
Slide 27: Banco Macro highlights x peers
Banco Macro highlights’ x peers FY 2023 Banco Macro Banco Galicia BBVA Supervielle Santander Peers Average Profitability Net Interest Margin1 40.50% 34.53% 37.30% 31.40% N/A 34.41% Efficiency Ratio² 18.60% 60.60% 58.60% 54.70% 37.00% 45.90% ROAE 33.20% 18.18% 13.00% 16.70% 21.90% 20.60% ROAA 8.70% 3
Slide 28: Superior and consistent performance relative to peers
Superior and consistent performance relative to peers (FY2023) Accumulated ROAE Accumulated ROAA Net Interest Margin (NIM) ² 33.20% 8.70% 40.50% 37.30% 34.53% 34.53% 31.40% 21.90% 20.60% 18.80% 16.70% 4.15% 13.00% 3.34% 3.50% 2.70% 2.50% Banco Macro Galicia BBVA Superville Santander Peers Average Ba
Slide 29: Financial summary
Financial summary Balance Sheet Breakdown - Assets (Ps Billion) Balance Sheet Breakdown – Liabilities (Ps Billion) 1% 1% 1% 1% 0% 1% 0% 0% 1% 2% 2% 2% 2% 2% 2% 4% 4% 4% 4% 4% 4% 4% 4% 1% 2% 3% 3% 3% 4% 7% 6% 7% 7% 3% 3% 7% 2% 10% 2% 2% 3% 3% 4% 6% 2% 2% 2% 2% 5% 5% 2% 4% 10% 4% 8% 6% 14% 15% 17% 11%
Slide 30: Financial summary
Financial summary Earnings per Outstanding Share (USD)¹ 15 12 11.83 11.36 9 8.89 (PS) 6 4.57 3 0.51 0 4Q22 3Q23 4Q23 FY2023 FY2023 30 30
Slide 31: Financial summary
Financial summary Note: 1 Net interest margin (excluding difference in quote in foreign currency). 31 31
Slide 32: Deposits and total financing maturity
Deposits and total financing maturity Loans Mortgage Pledged Loans Deposits Loans Low-Cost Deposits 4% 2% Overdrafts Personal Loans Others 16% 13% 11% Time 30% Credit Cards ▪ 10% of Loan Book in dollars. 29% ▪ 30% of deposits in dollars. Documents² 18% Sight Others³ 59% 18% Publ & Fin 1% Publ & Cros
Slide 33: Deposits and total financing maturity
Deposits and total financing maturity Total Deposits¹ Total Financing¹ More than 3 up to 6 months; 4% More than 6 up to 12 months; 2% More than 24 More than 1 up to 3 months 14% months; 5% Up to 1 More than 12 up Month to 24 months 13% 37% More than 6 More than 1, months up to 3 Up to 1 13% months M
Slide 34: Organic, inorganic and fee income growth
Organic, inorganic and fee income growth Market Share Evolution1 Net Fee Income 80000 70000 10% I II III IIV V VI 9.1% 211,723 6,040 7,222 220,769 5,918 6,040 5,918 60000 62,792 60,443 59,061 60,443 8% 59,061 6.2% 40000 52500 4Q22 3Q23 4Q23 FY2022 FY2023 5% Fee Income Fee Expenses Fee Income Fee Exp
Slide 35: Asset quality
Asset quality NPLs as a % of Total Lending1 NPL Peers & Financial System Supervielle 1,20 % 3.2 BBVA 1,29 % 2.6 3.0 Macro 2.1 1,30 % 2.0 1.8 1.7 2.0 1.9 2.1 1.5 1.5 1.6 Private Banks 1.1 1.1 1.3 1.3 1.3 1,54 % 0.8 Santander 1,60 % Galicia 2,34 % 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Slide 36: Funding & Liquidity management
Funding & Liquidity management Large share of demand deposits complemented by Appropriate liquidity available to low-cost deposits from provinces take advantage of expected Deposit Base credit expansion Liquidity Management 1.25 (Million Ps) 4Q22 4Q23 1 11% 7% 11% 10% 10% Cash + cash collateral + ca
Slide 37: Lower exposure to public sector and solid capitalization
Lower exposure to public sector an solid capitalization and solvency Exposure to the Public Sector1 Excess Capital 28 600,000 45 22 36 450,000 17 27 300,000 11 18 150,000 6 9 0 0 0 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2006 2007 2008 2009 2010 2011
Slide 38: Section IV: Banco Macro Strengths and Opportunities
SECTION IV Banco Macro Strengths and opportunities 38 38
Slide 39: Strong well diversified loan book
Strong well diversified loan book Private Sector Loans – Banco Macro vs. System Banco Macro (Ps. 1.1 trillion)¹ System (Ps. 13.8 Trillion)² 0.375 0.4 Overdraft Overdraft Documents (2) Documents (2) Mortgage Loans 34% Mortgage Loans Pledged Loans Pledged Loans 0.3 29% Personal Loans Personal Loans 30
Slide 40: Strong well diversified loan book
Strong well diversified loan book Breakdown of Loans by Economic Activity¹ Transportation, storage and Othercommunications. services Hotels and restaurants Agricultural livestock - Forestry - 0% 2% 3% Fishing - Mining - Hunting 18% Foodstuff and beverages Retail loans 6% 35% Manufacturing and wholes
Slide 41: Strong presence in fast growing segments
Strong presence in fast growing segments Category 1 Breakdown¹ ‣ As of December 2023, credit cards comprise 30% of outstanding loans, down 9% YoY. Volume (Ps. Millions) Retirees 22% ‣ We have grown our credit cards business at 38% CAGR since 2007 through our point-of-sale Credit Cards Open Market pr
Slide 42: Section V: Financial System & Argentine Economy
SECTION V Financial System & Argentine Economy 42 42
Slide 43: Private sector loans growth
Private sector loans growth Loans Growth Rates (YoY) Private Sector Loans/GDP¹ 90.0% 20% 60.0% 30.0% 0.0% -30.0% -60.0% 05% Total Individuals Corporations 43 Source: BCRA/BMA | As of 2023. Note 1 : As of December, 2021. 43
Slide 44: Private sector deposits growth
Private sector deposits growth Deposits Growth Rates (YoY) Private Sector Deposits/GDP¹ 120% 29% 23% 80% 17% 40% 12% 0% 6% -40% 0% Total Individuals Corporations Dep SF ($+u$s) Priv S. Dep 44 Source: BCRA/BMA | As of 2023. Note 1 : As of December, 2021. 44
Slide 45: Private sector loans and deposits growth
Private sector loans and deposits growth Private Sector Loans & Deposits with Consistent Growth 26.00% 25% 24% 23% 21% 21% 21% 20% 20% 19.50% 18% 16% 14% 15% 15% 14% 12% 12% 13.00% 10% 9% 9% 7% 6.50% 0.00% 2015 2016 2017 2018 2019 2020 2021 2022 2023E 2024E Deposits Loans Low Penetration Compared to
Slide 46: Ownership structure, dividends and debt information
Ownership structure1 | Debt & equity information Dividends per share Fiscal Year Payment Dividends paid (In thousands Ps.) Payout Ratio (Ps) Local 2005 May/06 68,395 0.1 26.03% Shareholders 11% ADRS 2006 May/07 102,591 0.15 24.18% 23% 2007 May/08 170,995 0.25 34.53% 2008 Sep/09 148,334 0.25 22.47% 2
Slide 47: Banco Macro's share performance x Merval Index & Peers
Banco Macro’s share performance X Merval Index & Peers (100 points as of Jan, 2, 2006) Banco Macro's Share Performance x Merval Index & Peers (100 points as of Jan, 2, 2006) 160000 Merval Index Macro Galicia BBVA 140000 120000 100000 80000 60000 40000 20000 0 2006 20007 2008 2010 2011 2012 2014 2015
Slide 48: Section V: Banco Macro Strategy and Digitalization
SECTION V Banco Macro Strategy and digitalization 48 48
Slide 49: Banco Macro's long term strategic vision
Banco Macro’s long term strategic vision seeks to change the way we do Banking in Argentina Establishing a new value proposal that it is non existent in today’s Argentine market, by reshaping and redefining game rules 01 Integrating the best customer serivce with digital service for customers. 02 Cl
Slide 50: Argentina's Competitive Environment
Argentina’s Competitive Environment • Digital channels have absorbed day to day operations. It is worth mentioning that some digital wallets have disappeared due to • Banks have improved considerably their value propositions, not only transactional operations difficulties to be profitable. MODO but
Slide 51: Argentina's Competitive Environment
Argentina’s Competitive Environment • The interior of the country continues to be the “big opportunity” being the core for the productive development of the country but it shows the potential of some sectors like: mining, oil and gas, renewable energies, tourism, agribusiness. • Few products show an
Slide 52: Digitalization – Advanced Origination
Digitalization – Advanced Origination PRESENT DAY 402 Branches with Advanced Origination 92% 1186 Relationship Executives +1000 Courses (e-Learning) with tablets Of total branch network 2024 Q2 85% 435 BRANCHES WITH Originated by Advanced Origination (Digital) ADVANCED ORIGINATION 52 52
Slide 53: "Use" of digitalization
Our Model (2023) “Use” of digitalization 64% of personal loans are originated digitally • Sales with digital origination: DIGITALIZATION / 37,131 → 81% 47% of total loans originated in branches are transfered ADVANCED ORIGINATION • Products sold with digital to digital channels. originatio: 51,892 →
Slide 54: "Use" of digital
Our model- (2023) “Use” of digital Self Serive Terminals: Use of Biometrics • 80% of sales SELF SERVICE Transactions using % USO TERMINALS • 21% active clients Transactions own Biometrics BIOMETRICS • (+13,5% monthly average) MARCH 360,869 45,372 13% BIOMETRICS • 36% de digital clients APRIL 370,000
Slide 55: Biometrics: 2023 Achievements and 2024 Objectives
Biometrics 2023 Achievements 2024 Objectives Increase the remote channels that use Biometric validation. 426 Branches with biometrics 774.864 1.081.908 Implement Biometrics on all BMA (Itaú) Branches Face Id registrations Touch Id registrations Channels were Biometrics is used Biometrics for Corpora
Slide 56: BancoChat 2024 Focus
BancoChat 2024 Focus Increase our operations offer and 01 Continue to incorpórate credit card operations, accounts and top ups Improve user experience by Natural 02 Language Processing • Natural Languague Processing integration • Reduce conversational flows • Change tones in conversations STRATEGY •
Slide 57: BancoChat Metrics
BancoChat Metrics February 2023 through January 2024 # of conversations and users # of conversations and customer satisfaction rate Transactions evolution 200.000 conversations and over Over 130.000 users (per month). We increased transactionality by adding new features and operations. Over 70% cust
Slide 58: We are technology services providers for corporates and governments
We are not only financial services providers, we are technology services providers for corporates, provincial and municipal governments. We strive to offer more and better experiences. Ours is not only a digital transformation, it is a cultural and nationwide transformation.
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