Banco Macro Sa Class B · BCBA:BMA
Banco Macro Sa Class B — Investor Presentation (April 2019)
36 slides from Banco Macro Sa Class B's investor presentation, April 2019
Slide 1: Investor Relations
Investor Relations April 2019
Slide 2: Company Representatives and 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 prepared solely for informational purposes. This presentation contains forward-looking statements which are b
Slide 3: Agenda
AGENDA 01. Section I - BMA Business Overview 02. Section II - BMA Strengths and Opportunities 03. Section III - BMA Financial Performance 04. Section IV - Financial System & Argentine Economy 05. Section V - Appendix 3
Slide 4: Section I - BMA Business Overview
SECTION I BMA Business Overview
Slide 5: Macro in a Nutshell
MACRO IN A NUTSHELL 01 A Leading Private Sector Bank in Argentina 02 Presence in Fast Growing Segments 03 Strong Profitability & Returns 04 Diversified Loan Portfolio & Prudent Risk Management 05 Robust Liquidity & Capital Ratios 5 5
Slide 6: A Successful Business Model & Strategic Focus
A SUCCESSFUL BUSINESS MODEL & STRATEGIC FOCUS Banco Macro Strategy Jujuy Misiones Salta » Enhanced business model to increase efficiency and Tucuman Formosa cross-selling capabilities Catamarca Santiago Del Chaco Estero Corrientes » Continue gaining market share in low-to-mid income La Rioja Santa F
Slide 7: A Successful Business Model & Strategic Focus
A SUCCESSFUL BUSINESS MODEL & STRATEGIC FOCUS Business Model 7
Slide 8: A Successful Growth Story
A SUCCESSFUL GROWTH STORY 40 years of experience in the Argentine Financial System Banco Privado de Inversiones Merger Nuevo Banco Bisel Banco de Tucumán / NYSE IPO / Nuevo Banco Bisel Banco Empresario de Tucumán Nuevo Banco Suquía Banco Bansud / 35% of Scotiabank Argentina Branches of Banco Mayo, A
Slide 9: A Unique Branch Network
A UNIQUE BRANCH NETWORK Largest private sector branch network in Argentina and exclusive financial agent in 4 provinces Strongest presence outside Buenos Aires² Branches Macro 78% 16% 6% 471 Nationwide Nacion 60% 30% 10% 635 Presence¹ Supervielle 38% 27% 26% 179 471 Branches throughout the country P
Slide 10: An Increasing Branch Network in Buenos Aires
AN INCREASING BRANCH NETWORK IN BUENOS AIRES Keep increasing our market share in Buenos Aires Rest of Buenos Aires Province1 Metropolitan Area & Great Buenos Aires1 Market Market Bank (total branches) Total Bank (total branches) Total Share Share 1 Provincia de Bs As 227 26% 1 Santander Rio 222 15%
Slide 11: A Leading Private Sector Bank in Argentina
A LEADING PRIVATE SECTOR BANK IN ARGENTINA Assets (Ps Billion - % Market Share) Equity (Ps Billion - % Market Share) 100% 100% 553,483 5,164,429 25% 24% 628.450 10% 9% 8% 7% 6% 4% 1,272,030 23% 29% 3% 3% 3% 159,225 497,756 469,636 407,683 338,831 310,669 127,354 192,306 159,499 156,264 142,876 10% 7
Slide 12: Section II - BMA Financial Performance
SECTION II BMA Financial Performance
Slide 13: BMA's Earnings Consistent Growth
123 115 88 169 152 161 163 184 156 163 191 242 246 222 268 274 258 258 314 346 324 332 412 426 458 460 572 953 1,186 733 986 Quarterly Net Profit (Ps Million) 575 1,114 BMA’S EARNINGS CONSISTENT GROWTH 823 1,105 1,967 1,408 1,805 1,633 1,695 2,016 2,224 2,735 3,101 3,542 3,115 3,828 5,243 13
Slide 14: Banco Macro Highlights x Peers
BANCO MACRO HIGHLIGHTS’ X PEERS Banco Macro Banco Galicia BBVA Frances Santander Rio Profitability Net Interest Margin1 14.9% 12.9% 13.2% N/A Efficiency Ratio² 37.9% 40.4% 49.6% 54.1% ROAE 30.7% 30.9% 28.5% 29.7% ROAA 5.8% 3.2% 3.4% 2.5% Liquidity Loans / Deposits 75.2% 67.3% 69.9% 55.2% Capital Tot
Slide 15: Superior and Consistent Performance Relative to Peers
SUPERIOR AND CONSISTENT PERFORMANCE RELATIVE TO PEERS ROAA¹ ROAE¹ 5.80% 30.90% 30.7% 29.70% 29.70% 3.40% 3.20% 3.03% 2.50% 28.50% Banco Macro Galicia BBVA Santander Peers Francés Rio Avarage Banco Macro Galicia BBVA Santander Peers Francés Rio Avarage Net interest Margin² Efficiency Ratio³ 54.10% 14
Slide 16: Financial Summary
FINANCIAL SUMMARY Balance Sheet Breakdown - Assets (Ps Billion) Balance Sheet Breakdown – Liabilities (Ps Billion) 4% 4% 4% 4% 4% 4% 2% 4% 2% 2% 1% 1% 1% 2% 1% 4% 3% 3% 3% 1% 3% 2% 3% 3% 0% 5% 3% 4% 6% 3% 2% 2% 2% 2% 2% 5% 3% 2% 2% 4% 9% 11% 8% 8% 7% 7% 6% 12% 14% 14% 6% 87% 86% 88% 86% 86% 81% 82%
Slide 17: Financial Summary: Income Statement Highlights
FINANCIAL SUMMARY Income Statement Highligths Ps Million 4Q17 1Q18 2Q18 3Q18 4Q18 Net Interest Income 7,407.4 7,942.1 9,092.5 10,322.7 12,288.2 Net fee income 2,271.7 2,385.1 2,710.7 2,901.2 3,136.1 Subtotal (Net Interest Income + Net Fee Income) 9,679.1 10,327.2 11,803.2 13,223.9 15,424.3 Net Incom
Slide 18: Financial Summary: Accumulated Annualized Ratios
FINANCIAL SUMMARY ACCUMULATED ANNUALIZED RATIOS 4Q17 1Q18 2Q18 3Q18 4Q18 Profitability & Performance Net interest margin 12.7% 15.4% 14.4% 14.0% 14.9% Net interest margin adjusted (exc. FX) 12.0% 15.1% 15.2% 15.2% 15.4% Net fee income ratio 19.7% 17.2% 18.2% 18.8% 16.7% Efficiency ratio 40.0% 35.6%
Slide 19: Total Loans & Deposits Breakdown
TOTAL LOANS & DEPOSITS BREAKDOWN Loans Deposits Low-Cost Pledged Deposits Mortgage Loans Loans 3% 8% Others 4% Overdrafts 27% of Loan Book in 10% dollars. Personal Time Sight Loans 34% 30% of deposits in 53% 43% dollars. Documents² 13% Others³ 15% Credit Cards 17% Publ & Fin Publ & Fin 8% 1% Cro
Slide 20: Deposits and Total Financing Maturity
DEPOSITS AND TOTAL FINANCING MATURITY Total Financing¹ Total Deposits¹ More than 3, up More than 6 to 6 Months months 3% 1% More than 1, up to 3 months Up to 1 14% Month¹ More than 24 19% months More than 1 30% up to 3 months 10% More than 3 up to 6 Up to 1 Month More than 12 months 82% up to 24 11%
Slide 21: Organic, Inorganic and Fee Income Growth
ORGANIC, INORGANIC AND FEE INCOME GROWTH Market Share Evolution1 Fee Income Growth 2 10% I II V 11,000 III IIV 12% 3% 7.9% 9,000 8% 29% 7.0% 7,000 5% (Million Ps.) 5,000 3% 3,000 56% 1,000 0% -1,000 Other Credit-related fees Debit and credit card income Fee charges on deposit accounts Source: BCRA N
Slide 22: Asset Quality
ASSET QUALITY NPLs as a % of Total Lending1 3.2 Banco Macro 4.5 Financial System¹ 2.6 3.5 3.2 3.1 2.0 2.1 2.0 1.9 2.8 1.8 1.7 1.5 1.5 1.6 2.1 2.0 1.1 1.1 1.7 1.7 1.7 1.8 1.7 1.4 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 20
Slide 23: Funding & Liquidity Management
FUNDING & LIQUIDITY MANAGEMENT Large share of demand deposits Appropriate liquidity complemented by low-cost available to take advantage of deposits from provinces expected credit expansion Deposit Base Liquidity Management 250,000 230,000 4% (Million Ps) 4Q17 4Q18 210,000 47% low-cost Cash + cash c
Slide 24: Lower Exposure to Public Sector and Solid Capitalization and Solvency
LOWER EXPOSURE TO PUBLIC SECTOR AN SOLID CAPITALIZATION AND SOLVENCY Exposure to the Public Sector1 Excess Capital 24 45,000 40 40,000 18 35,000 30 Net Public Exposure/Total Assets (%) 30,000 26.5 Excess of Capital (Million Ps.) Capitalization Ratio (%) 12 25,000 10.5 20 19.7 20,000 15,000 6 10 3.7
Slide 25: Section III - BMA Strengths and Opportunities
SECTION III BMA STRENGHTS AND OPPORTUNITIES 25
Slide 26: A Strong Position in Core Banking Activity
A STRONG POSITION IN CORE BANKING ACTIVITY Market Share / Group of Banks1 Loans to the Private Sector Private Sector Deposits Macro Macro 23% 21% Private Banks Public Banks Private Banks (Local) 32% (Local) 32% 33% Public Banks 35% Private Banks Private Banks (Foreign) (Foreign) 34% 31% Source: BCRA
Slide 27: Strong Well Diversified Loan Book
STRONG WELL DIVERSIFIED LOAN BOOK Private Loans – Banco Macro vs. System Banco Macro (Ps. 170.8 Billion)¹ System (Ps. 2.135 Billions)² Others (3) Overdraft Overdraft 5% 7% 10% Others (3) 15% Credit Cards Documents (2) 18% 14% Documents (2) Credit Cards 34% 17% Mortgage Loans 7% Personal Loans 20% Pe
Slide 28: Strong Well Diversified Loan Book: Loans by Economic Activity
STRONG WELL DIVERSIFIED LOAN BOOK Breakdown of Loans by Economic Activity¹ Agricultural livestock - Forestry Transportation, storage and - Fishing - Mining - Hunting communications. 14% 2% Other services 2% Hotels and restaurants 0% Foodstuff and beverages 6% Manufacturing and wholesale 5% Chemicals
Slide 29: Strong Presence in Fast Growing Segments
STRONG PRESENCE IN FAST GROWING SEGMENTS » As of December 2018, credit cards comprise 17% of Volume (Ps. Millions) 27,701 Breakdown¹ outstanding loans, up 19% YoY. » We have grown our credit cards business at 43% CAGR Credit Cards since 2007 through our point-of-sale promotion strategy Retirees and
Slide 30: Section IV - Financial System & Argentine Economy
SECTION IV FINANCIAL SYSTEM & ARGENTINE ECONOMY 30
Slide 31: Private Sector Loans Growth
PRIVATE SECTOR LOANS GROWTH Loans Growth Rates (YoY) Private Sector Loans/GDP¹ 80.0% 20% 60.0% 47% 40% 16% 40.0% 15% 34% 20.0% 0.0% 10% -20.0% -40.0% 05% 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Total Individuals Corporations Source: BCRA/BMA As of Novembe
Slide 32: Private Sector Deposits Growth
PRIVATE SECTOR DEPOSITS GROWTH Deposits Growth Rates (YoY) Private Sector Deposits/GDP¹ 100% 25% 80% 21% 20% 60% 19% 44% 40% 42% 41% 15% 20% 0% 10% -20% -40% 5% -60% 0% 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Dep SF ($+u$s) Priv S. Dep Total Individuals Corporations Sou
Slide 33: Private Sector Loans and Deposits Growth
PRIVATE SECTOR LOANS AND DEPOSITS GROWTH Deposits and Loans with Private Sector Consistent Growth 52% 52% 47% 47% 43% 43% 42% 41% 38% 38% 36% 30% 31%30% 31% 32% 27% 28% 29% 26% 25% 25% 21% 22% 21% 20% 20% 11% 10% 8% 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Loans Dep
Slide 34: Section V - Appendix
oo Nee) oi ie i SECTION V APPENDIX
Slide 35: Ownership Structure | Debt & Equity Information
OWNERSHIP STRUCTURE1 | DEBT & EQUITY INFORMATION Dividends paid to the Dividends per Banco Macro Anses Fiscal Year Payment shares share Payout (Treasury 28% Ratio (In thousands Ps.) (Ps) Major Stock) 2005 May/06 68,395 0.1 26.03% Shareholders 4% 33% 2006 May/07 102,591 0.15 24.18% 2007 May/08 170,99
Slide 36: Stock Performance
STOCK PERFORMANCE Banco Macro's Share Performance x Merval Index & Peers (100 points as of Jan, 2, 2006) 7000 6384.43 6000 5000 4468.92 4000 3134.67 3000 2335.13 2000 Merval Index Macro 1000 Galicia Frances 0 2006 20007 2008 2009 2010 2012 2013 2014 2015 2017 2018 Source: Bloomberg As of January 31,