Macro Bank Q2 2025 Earnings Report

Macro Bank EPS Results

• Actual EPS: $1.95
• Consensus EPS: $1.99
• Beat/Miss: Missed by -$0.04
• One Year Ago EPS: N/A

Macro Bank Revenue Results

• Actual Revenue: $834.78 million
• Expected Revenue: $752.51 million
• Beat/Miss: Beat by +$82.27 million
• YoY Revenue Growth: N/A

Macro Bank Announcement Details

• Quarter: Q2 2025
• Date: 8/27/2025
• Time: Before Market Opens
• Conference Call Date: Thursday, August 28, 2025
• Conference Call Time: 11:00AM ET

Banco Macro S.A. provides various banking products and services to retail and corporate customers in Argentina. It offers various retail banking products and services, such as savings and checking accounts, time deposits, credit and debit cards, consumer finance loans, mortgage loans, automobile loans, overdrafts, credit-related services, home and car insurance coverage, tax collection, utility payments, automated teller machines, and money transfers. The company also provides personal loans, document discounts, residential mortgages, overdrafts, pledged loans, and credit card loans to retail customers. In addition, it offers corporate banking products and services, including deposits, lending, check cashing advances and factoring, guaranteed loans, credit lines for financing foreign trade, and cash management services; and trust, payroll, and financial agency services, as well as corporate credit cards and other specialty products; and working capital facilities, credit for investment projects, and leasing and foreign trade transactions. Further, the company provides transaction services, such as cash management, collection services, payments to suppliers, payroll services, foreign exchange transactions, and foreign trade services; information services comprising Datanet and Interpymes services to corporate customers; and Internet and mobile banking services. Additionally, it offers short-term and medium-to-long-term corporate lending products. Banco Macro S.A. was incorporated in 1966 and is headquartered in Buenos Aires, Argentina.

Macro Bank Q2 2025 Earnings Call Transcript

Key Takeaways

• Positive Sentiment: Net income surged 209% quarter-on-quarter, delivering an annualized ROE of 123.5% and marking another quarter of strong profitability.
• Positive Sentiment: Net interest income rose 14% and net fee income climbed 16% quarter-on-quarter, driven by higher lending rates, card fees and government securities income.
• Positive Sentiment: Total loans expanded 14% quarter-on-quarter (91% year-on-year) and deposits grew 4% (13% year-on-year), supported by robust retail and government-backed funding.
• Positive Sentiment: The efficiency ratio improved to 33.9% from 38.2%, reflecting tighter cost control and lower operating expenses relative to income.
• Negative Sentiment: Asset quality showed early signs of stress with the NPL ratio at 2.06% (up from 1.81%) and provisions rising 47% quarter-on-quarter, with management forecasting up to 3% by year-end.

Presentation

[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 twenty twenty five Earnings Conference Call. We would like to inform you that the second Q 'twenty five press release is available to download at the Investor Relations website of Banco Macro, www.macro.com. Arrelaciones inversoris. Also, this event is being recorded and all participants will be in a listen only mode during the company's presentation.

[Operator]

After the company's remarks are completed, there will be a question and answer session. At that time, further instructions will be given. It is now my pleasure to introduce our speakers. Joining us from Argentina Jorge Skarinsi, Chief Financial Officer and Mr. Nicolas Tojes, IR. Now I will turn the conference over to Mr. Nicolas Tojes. You may begin your conference.

[Nicolás Torres, Investor Relations at Banco Macro]

Thank you. Good morning, and welcome to Banco Macro's Second Quarter twenty twenty five 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 twenty twenty five 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.

[Nicolás Torres, Investor Relations at Banco Macro]

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 06/30/2025. I will now briefly comment on the bank's second quarter twenty twenty five financial results. In the 2025, Banco Macro's net income totaled billion, which was 209% or ARS101.1 billion higher than in the previous quarter. This result was mainly due to higher net interest income as well as higher net fee income.

[Nicolás Torres, Investor Relations at Banco Macro]

Higher net income from financial assets and liabilities at fair value to profit or loss and higher FX income and the lower loss related to the result from the net monetary position as lower inflation was registered in the quarter, which was partially offset by lower other operating income, higher loan loss provisions and higher income tax. This result represented an annualized ROE and ROA of 123.5%, respectively. Total comprehensive income for the quarter totaled ARS 157,100,000,000.0, 241% or billion higher than the result posted in the previous quarter. Net operating income before general and administrative and personnel expenses was ARS96.2 billion in the 2025, 13% or ARS 107,000,000,000 higher compared to the 2025 due to higher income from interest and loans and higher income from government securities. On a yearly basis, net operating income before general, administrative and personnel expenses increased 49% or ARS 314,600,000,000.0.

[Nicolás Torres, Investor Relations at Banco Macro]

Provision for loan losses totaled ARS 103,000,000,000, 47% or ARS 33,100,000,000.0 higher than the 2025, given the loan growth experienced in the quarter. On a yearly basis, provision for loan losses increased 349% or ARS 80,100,000,000.0. In the quarter, net interest income totaled ARS 6 and 96,900,000,000.0, 14% or ARS 82,900,000,000.0 higher than the 2025 and one hundred and sixty three percent or ARS $432,000,000,000 higher year on year. This result was due to a 169,200,000,000.0 increase in interest income and an ARS 86,300,000,000.0 increase in interest expense. In the 2025, interest income totaled ARS 1,100,000,000,000.0, 18% or ARS 169,200,000,000.0 higher than the 2025 and twenty six percent or ARS 221,300,000,000.0 higher than in the 2024.

[Nicolás Torres, Investor Relations at Banco Macro]

Income from interest on loans and other financing totaled ARS 746,100,000,000.0, 19% or ARS 118,200,000,000.0 higher compared with the previous quarter, mainly due to a 17% increase in the average volume of private sector loans and by a 43 basis points increase in the average lending rate. On a yearly basis, income from interest on loans increased 30% or ARS 171,300,000,000.0. In the 2025, interest on loans represented 69% of total interest income. In the 2025, income from government and private securities increased 18% or ARS 50,800,000,000.0 quarter on quarter, mainly due the caps and inflation adjusted bonds, Bonsata, and increased 54% or ARS 118,800,000,000.0 compared with the same period of last year. This result is explained 94% by income from government and private securities at amortized cost, and the remaining 6% is explained by income from government securities valued at fair value to profit through other comprehensive income.

[Nicolás Torres, Investor Relations at Banco Macro]

In the 2025, income from Rivos totaled ARS 1,000,000,000, 10% or ARS 92,000,000 higher the previous quarter and 99% or ARS 67,000,000,000 lower than a year ago. It is worth noting that as of 07/22/2024, the Central Bank decided to terminate repos and replace them with levies, which were then terminated on 07/10/2025. In the 2025, FX income totaled a ARS 22,400,000,000.0 gain, 229% or ARS 15,600,000,000.0 higher than the 2025, mainly due to income from foreign currency exchange, which increased ARS 12,500,000,000.0. On a yearly basis, FX income decreased 37% or ARS 13,100,000,000.0. In the quarter, the Argentine peso depreciated 11.2% against the U.

[Nicolás Torres, Investor Relations at Banco Macro]

S. Dollar after the Central Bank of Argentina replaced the 1% foreign PEG, allowing the Argentine peso to grow freely between twenty one thousand fourteen hundred. In the 2025, interest expense totaled ARS391.2 billion, increasing 28% or ARS86.3 billion compared to the previous quarter and decreased 35% to 110,700,000,000.0 compared to the 2024. Within interest expenses, interest on deposits represented 96% of the bank's total interest expense, increasing 30% or ARS 86,600,000 quarter on quarter due to a two twenty eight basis points increase in the average rate paid on deposits, while the average volume of private sector deposits increased 14%. On a yearly basis, interest on deposits decreased 35% or ARS 205,100,000,000.0.

[Nicolás Torres, Investor Relations at Banco Macro]

In the 2025, the bank's net interest margin, including FX, was 23.5%, higher than the 23.2% posted in the 2025 and the 19.9% posted in the 2024. In the 2025, Banco Macro's net fee income totaled ARS 108,400,000,000.0, 16% or ARS 25,100,000,000.0 higher than the 2025. In the quarter, credit card fees stand out with a 90% or ARS 28,600,000,000.0 increase, followed by fees charged on deposit accounts and credit related fees, which increased 4% or ARS 2,900,000,000.0 33% or ARS 2,800,000,000.0, respectively, which were partially offset by a 30% or ARS 2,300,000,000.0 decrease in mutual funds and securities fees. On a yearly basis, fee income increased 34% or ARS 45,300,000,000.0. In the 2025, net income from financial assets and liabilities for a value to profit or loss totaled ARS 113,700,000,000.0 gain, increasing 61% or ARS43.3 billion compared to the 2025.

[Nicolás Torres, Investor Relations at Banco Macro]

This result is mainly due to higher income from government securities. On a yearly basis, net income from financial assets and liabilities for value to profit or loss decreased 33% or ARS55.3 billion. In the quarter, other operating income totaled ARS45.8 billion, 37% or ARS26.8 billion lower than the 2025 due to lower credit and debit card income. On a yearly basis, other operating income decreased 24% or ARS 14,300,000,000.0. In the 2025, Banco Macro's administrative expenses plus employee benefits totaled ARS 279,700,000,000.0, 3% or ARS 7,300,000,000 higher than the previous quarter due to higher administrative expenses, which increased 8%.

[Nicolás Torres, Investor Relations at Banco Macro]

Meanwhile, employee benefits were practically unchanged. On a yearly basis, administrative expenses plus employee benefits decreased 1% or 2,600,000,000.0. In the 2025, efficiency ratio reached 33.9, improving from the 38.2% posted in the 2025 and from the 55.6% posted a year ago. In the 2025, expenses, employee benefits plus general and administrative expenses, depreciation and impairment facets increased 2%, while income, net interest income, net fee income plus difference in quota prices of gold and foreign currency plus other operating income and net income from financial assets per value to profit or loss increased 15% compared to the 2025. In the 2025, the result from the net monetary position totaled €203,900,000,000 plus loss, 28% or MXN 79,300,000,000.0 lower than the loss posted in the first quarter of twenty twenty five, and sixty eight percent or MXN 4 and 39,900,000,000.0 lower than the loss posted one year ago.

[Nicolás Torres, Investor Relations at Banco Macro]

Lower inflation was observed during the quarter, two fifty six basis points below the 2025, down 6.1% from 8.77 in the 2025. In the first in the 2025,

[Nicolás Torres, Investor Relations at Banco Macro]

Banco Macro's effective income tax rate was 39%, lower than the one registered in the 2025. Further information is provided in Note 21 to our financial statement. In terms of loan growth, the bank's total financials reached ARS 9,240,000,000,000.00, increasing 14% or COP 1,100,000,000,000.0 quarter on quarter and increasing 91% or COP 4,400,000,000,000.0 year on year. In the 2025, private sector loans increased 13% or COP 1,100,000,000,000.0. On a yearly basis, private sector loans increased 91% or ARS 4,300,000,000,000.0.

[Nicolás Torres, Investor Relations at Banco Macro]

Within commercial loans, overdrafts, documents and others stand out with a ARS 369,800,000,000 increase at 19 or 243,500,000,000.0 pesos and a 14 or 200,600,000,000.0 pesos increase, respectively. In senior lending, almost all product lines increased during the 2025, except for credit card loans. Personal loans and mortgage loans stand out with a 12% or ARS206.8 billion and a 13% or ARS82.2 billion increase, respectively. In the 2025, peso financing increased 13% or 100,000,000.0, while U. Dollar financing increased 4% or $65,000,000 It is important to mention that Banco Macro's market share over private sector loans as of June 2025 reached 9.2%.

[Nicolás Torres, Investor Relations at Banco Macro]

On the funding side, total deposits increased 4% or ARS $4.00 6,200,000,000.0 quarter on quarter, totaling ARS 62,000,000,000,000 and increased 13% or ARS 1,200,000,000,000.0 year on year. Private sector deposits increased 4% or ARS $414,000,000,000 quarter on quarter, while private sector deposits decreased 1% or ARS 8,300,000,000.0 quarter on quarter. The increase in private sector deposits was led by time deposits, which increased 12% or ARS 514,600,000.0, while demand deposits increased 5% or ARS 209,900,000,000.0 quarter on quarter. Within the private sector deposits, peso deposits increased 1% or ARS 45,900,000,000.0, while U. S.

[Nicolás Torres, Investor Relations at Banco Macro]

Dollar deposits increased 2% or $45,000,000 As of June 2025, Banco Macro's transactional accounts represented approximately 48% of total deposits. Banco Macro's market share with private sector deposits as of June 2025 totaled 7.3%. In terms of asset quality, Banco Macro's nonperforming to total financial ratio reached 2.06%. The current ratio measured as total allowances under expected credit losses over nonperforming loans reached 137%. Consumer portfolio non performing loans deteriorated 100 basis points, up to 2.81% from 1.81% in the previous quarter, while commercial portfolio non performing loans improved 14 basis points in the 2025, down to 0.52% from 0.66 in the previous quarter.

[Nicolás Torres, Investor Relations at Banco Macro]

In terms of capitalization, Banco Macro has an excess capital of ARS 3,130,000,000,000.00, which represented a capital adequacy ratio of 30.5% and a Tier one ratio of 9%. The bank claims is to make the best use of this excess capital. The bank's liquidity remains more than appropriate. Liquid assets total deposit ratio reached 67%. Overall, we have accounted for another positive quarter.

[Nicolás Torres, Investor Relations at Banco Macro]

We continue to show solid financial position. We keep a well optimized deposit base, asset quality remain under control and closing order, and we keep on working to improve more our efficiency standards. At this time, we would like to take the questions you may have.

[Operator]

Thank you. At this time, we are going to open it up for questions and answers. Our first question comes from Ernesto Gabilondo with Bank of America.

[Ernesto Gabilondo, Director - LatAm Financials Bank of America at Bank of America Merrill Lynch]

You. Jorge and Nicolas, and thanks for taking my call. I have a couple of questions from my side. The first one will be on what could be the potential impact on NIMs and asset quality from the recent volatility on interest rates and debt auctions? Should we continue to expect volatility in the next weeks?

[Ernesto Gabilondo, Director - LatAm Financials Bank of America at Bank of America Merrill Lynch]

Yesterday, we saw the renewal of peso debt maturities, but still at high rates. My understanding is that you are participating in the debt auctions, which are coming with a high cost of funding. But at the same time, you are lending personal loans with three year maturity and high fixed rates. So just want to understand if this should help to compensate the temporary higher cost of funding. And on the other hand, my question is, if we have these high fixed rates, I don't know if at some point this could create asset quality deterioration on your client base?

[Ernesto Gabilondo, Director - LatAm Financials Bank of America at Bank of America Merrill Lynch]

I know a lot of questions in this first one, but I will appreciate your thoughts. And my second question is on your ROE expectations. So looking to the first half, it came at the low end of the guidance range of 8% to 10%. We have seen other peers reducing guidance because of the temporary macro backdrop. So how are you thinking about your ROE in the second half and full year?

[Jorge Francisco Scarinci, CFO, Finance Manager & IR Manager at Banco Macro]

This is Jorge Carinci. Thanks for your questions. The first one, yes, we are in an environment with a higher volatility than the one that we experienced at least in the first quarter of this year. I would say that the government is trying to reach the midterm elections with some piece on FX expectations and also on inflation expectations to have these two macro variables under control. I think that the work or the consequences of this is basically what the government is looking for because inflation is under control, below 2% on a monthly basis and also the FX is also under control in the current spot market.

[Jorge Francisco Scarinci, CFO, Finance Manager & IR Manager at Banco Macro]

Yes, of course, also, we are foreseeing sorry, we are seeing an increase in the funding cost, basically on time deposits. We are seeing interest rates going up. It is also true that in time deposits, we have a well atomized deposit base and with a big standing in the interior of the country. And in those deposits, we can relatively pay lower interest rates compared to our competitors that are more based in Buenos Aires area. But even though that we are seeing an increase in the funding cost.

[Jorge Francisco Scarinci, CFO, Finance Manager & IR Manager at Banco Macro]

It is also true what you mentioned about the debt options that we are going to these auctions in order to comply with the reserve requirements that have been increased a lot in the last thirty to forty five days. And it is also true what you mentioned that we are extending loans on personal lending with high interest fixed rates. I would say that even though if you have a look at the NIMs in the second quarter and also in the 2025, we have been able to increase or to enlarge or to widen these net interest margins. What we are forecasting for the third quarter is when you put all the combination of the increasing funding costs and what we are doing on the asset side, we expect to some timid reduction in the NIMs in the third quarter, basically due to this volatility and to the increase in referral requirements and the options that we are complying with, with some fixed rate that are not that high as we have been expecting. So bottom line, the third quarter NIM should be typically below the second quarter net interest margin.

[Jorge Francisco Scarinci, CFO, Finance Manager & IR Manager at Banco Macro]

On your second question, sorry, you also asked about NPLs. Yes, we are seeing NPLs across the board. I mean, the system going up. Even though that Banco Macro has the best asset quality standards among our peers. We are doing a great job there, but it's also true that with the current high real interest rate environment, we are foreseeing or we are showing an increase in NPLs.

[Jorge Francisco Scarinci, CFO, Finance Manager & IR Manager at Banco Macro]

Consider that with a monthly inflation of 2% and now real interest rates, at least in these personal loans are close to 6% or 7% positive in real terms, it becomes a bit more difficult for maybe debtors to pay, even though we have to say also that the economic program of this government has been focused on trying to maintain the salaries of the people rolling below inflation that is also affecting. And so therefore, we are forecasting for the third and fourth quarter of this year some additional deterioration in asset quality going to levels maybe between 2.5% to 3% of NPLs as a percentage of total loans. Finally, on your second question in terms of ROE expectations. For the moment, we are maintaining the range of between eight to 10% ROE in 2025 in real terms. So in that sense, are keeping our expectations and our guidance there.

[Ernesto Gabilondo, Director - LatAm Financials Bank of America at Bank of America Merrill Lynch]

Excellent. Just a follow-up in terms of the asset quality. You mentioned your expectations for the NPL in the second half. How should we think about cost of risk?

[Jorge Francisco Scarinci, CFO, Finance Manager & IR Manager at Banco Macro]

I would assume Ernesto cost of risk similar than the one that we saw maybe in the 2025. In the year of 4%, I would say four would be something reasonable to forecast for the second half.

[Operator]

Our next question comes from Brian Flores with Citi.

[Brian Flores, VP - Equity Research at Citi]

Hello, Nicolas. Thank you for taking my question. And I have only one question. What do you estimate for the then year year Tier one ratio would be?

[Jorge Francisco Scarinci, CFO, Finance Manager & IR Manager at Banco Macro]

In terms of the Tier one ratio, considering the increasing loans and the installments that we are paying our cash dividends announced in May, We are forecasting to end 2025 with a Tier one ratio in the area of 28.75%.

[Brian Flores, VP - Equity Research at Citi]

Thank you very much. Thinking on another question, what are your thoughts on the quality of the retail loan portfolio for the system?

[Jorge Francisco Scarinci, CFO, Finance Manager & IR Manager at Banco Macro]

Sorry, can you repeat that? Sorry.

[Brian Flores, VP - Equity Research at Citi]

What are your thoughts on the quality of the retail loan portfolio for the system?

[Jorge Francisco Scarinci, CFO, Finance Manager & IR Manager at Banco Macro]

Sorry. Yes. I mean, as I was commenting in the previous question, we are seeing some deterioration in asset quality. Basically, the increase in nominal and real interest rates is also impacting in the rhythm of the economy growth. What we are forecasting is that it should be maintained at least in the third quarter.

[Jorge Francisco Scarinci, CFO, Finance Manager & IR Manager at Banco Macro]

And we could see some relaxation of these interest rates in the fourth quarter. But in terms of delinquency rate, as I mentioned before, we are forecasting to have continued deterioration, in our case, maybe to level up to 3% of total loans by the end of the year. And I would say that across the board, it's going to be similar or might be a bit worse in other banks, Brian.

[Operator]

Next question from Yuri Fernandes with JPMorgan.

[Yuri Fernandes, Executive Director at JP Morgan]

I have one regarding the funding growth, particularly in Peru. I know all the cost debate, but we also have a volume debate, right? Like we are seeing your LDR in local currency approach 100%. This is not only macro, this is in the industry, it's the lack of peso, we get it. But what is the strategy for the funding, Jorge?

[Yuri Fernandes, Executive Director at JP Morgan]

What could macro do? Or should we see loan growth deceleration because like funding is getting too expensive and too difficult to find. So if you can comment a little bit on your funding strategy, maybe some guidance on deposits and also comment a little bit on your loan growth guidance, I would appreciate. And then I can ask a second question. Thank you.

[Jorge Francisco Scarinci, CFO, Finance Manager & IR Manager at Banco Macro]

Ulrik. I mean, in terms of what we are doing in terms of funding is, ideally, we are trying to pay a higher cost, but as far as we can, a relatively lower higher cost compared to our peers, as I mentioned in the first question, basically because of the deposit base more focused on the interior of the country and more retail than other peers. But of course, the idea is to continue growing in both in pesos deposits and dollar deposits. To give you an idea, in dollar deposits, we have the a very competitive interest rates among the markets, even though we have to say that we were able to issue a corporate bond in the second quarter that was, of course, is also helping the funding in dollars. We raised $530,000,000 It was a great transaction.

[Jorge Francisco Scarinci, CFO, Finance Manager & IR Manager at Banco Macro]

In that sense, we feel really comfortable and pretty liquid. When you look at the liquidity standards in macro, you can see that we have the highest levels among our peers, both in pesos and in dollars. And going back into pesos, also remember that we have been mentioning this in previous calls that in order to fuel the increase in loans, we not only look at the increase in deposit, but also the portfolio of securities that we have that we can also change or transform into loans. So but the idea is to keep on growing in both deposit in pesos and in dollars and also in loans. To give you the guidance that we have, when you look at loans, for example, in the 2025, we grew 36% in real terms our loans. The idea is to maintain the 60% loan growth guidance that we have been giving the previous quarter.

[Jorge Francisco Scarinci, CFO, Finance Manager & IR Manager at Banco Macro]

So 60% is maintained as a guidance for 2025 for loans. Deposits in the 2025, we grew our deposit base by 15%. So the idea is to keep the 30% guidance for 2025 for the moment.

[Yuri Fernandes, Executive Director at JP Morgan]

Super clear, Jorge. Just a follow-up here. Do you think like government may change like reserve requirements for the elections? Is there a hope from the industry here to help on this?

[Jorge Francisco Scarinci, CFO, Finance Manager & IR Manager at Banco Macro]

I mean, Yuri, the government, at least what they have been saying is that at least in August, we are finishing August this weekend. So next Monday, we are starting September. So at least in August, they didn't want to see spare liquidity in pesos that could be fueling an increase in inflation on the FX. So that was the main reason behind the increase in reserve requirements. Honestly, I don't know what will happen in September.

[Jorge Francisco Scarinci, CFO, Finance Manager & IR Manager at Banco Macro]

I think that we have to focus on what could be going on in the Buenos Aires province election that is taking place on Sunday, September 7. I would say that if the government can have a good performance in that election, I would say that all the liquidity and FX and inflation, everything is going to be more relaxed after that. But honestly, it is very difficult for me to answer that question right now, Yuri. No, No, thank you.

[Yuri Fernandes, Executive Director at JP Morgan]

I know it's a difficult one. Just a final one here, Jorge, on my side. Going back to Ernesto's question on the margin pressure for the third quarter. You mentioned a marginal pressure. Can you quantify or explain the moving parts?

[Yuri Fernandes, Executive Director at JP Morgan]

Where I struggle is the funding, right? When you go to the time deposits, like you go to the bottler, the bottler is, I don't know, running around 60%. And this is something that's starting July. And when we go to the asset side, I know you can reprice the loan, but we see an increasing rates for commercial papers, right, the loans and those other things. But when we go to the personal loans, we don't see a major repricing.

[Yuri Fernandes, Executive Director at JP Morgan]

And then when I think about your, I don't know, mortgage book that will not reprice as quickly, I struggle with like a marginal pressure. I wouldn't expect like a bigger pressure for the third quarter. So if you can help us understand a little bit. I know it's a quarterly thing, so it should not change your story. But just to understand a little bit the third quarter margin pressure here, how to quantify this? Thank you.

[Jorge Francisco Scarinci, CFO, Finance Manager & IR Manager at Banco Macro]

Well, Yuri, we are in the middle of the third quarter. So and with this volatile scenario, it's not easy to forecast. For the moment, what we are doing is what you have been mentioning, the increase that we are seeing in the time deposits, of course, is translated in short term lending. Also, we are or we have been repricing a little bit our personal loans. Remember that interest rate that we have in personal loans were in the area of 73%.

[Jorge Francisco Scarinci, CFO, Finance Manager & IR Manager at Banco Macro]

Nominal, we are or we have been moving those rates in it to low 80s. But basically, the big impact is on the short term liquidity that we are charging to big corporates in short term financing and also in maybe in some short term discount documents. If I have to say I would say that the compression that we could be foreseeing in the third quarter again should be in the area of 100 basis points for the moment. I mean, this could change, but for the moment, that is what we are seeing.

[Yuri Fernandes, Executive Director at JP Morgan]

So that's your best guess. Super clear, Jorge. And thanks and congrats on your asset quality. No, congrats if you were seeing it's not good, but as you said, it will be a little bit better than most years. So good on that. Thank you.

[Jorge Francisco Scarinci, CFO, Finance Manager & IR Manager at Banco Macro]

Thank you very much, Yuri.

[Operator]

Next question from Matthias Cataruzzi with ADCAB Securities.

[Matías Cattaruzzi, Senior Equity Research Analyst at Adcap Grupo Financiero]

I have a question about the expected loan growth and deposit growth for 2025. The guidance was 60% on loans and as well 45% on deposits. We've seen twenty five percent on the first quarter on loans and then 14%. So there's still room to grow in loans and deposits on the only had a five and a 4% growth in prior quarters. How do you see this tendency, especially with the third quarter expected to be a little bit more illiquid than prior expectations?

[Jorge Francisco Scarinci, CFO, Finance Manager & IR Manager at Banco Macro]

Matthias. Yes, what we are seeing is that in the third quarter, at least in terms of lending, there should be a number maybe not that high. But what we are forecasting is that in the fourth quarter, macroeconomic conditions should be more relaxed and there could be some pickup there in demand in order to get to the 60% guidance in loans. And also in terms of the guidance in deposits that I mentioned that is 30% for 2025 is similar. I would say that some volatility in the third quarter and more normalized scenario in the fourth quarter.

[Matías Cattaruzzi, Senior Equity Research Analyst at Adcap Grupo Financiero]

And then another question on your strong capital position. Do you still consider M and A activity acquiring a midsized peer or given valuations right now are more hurt than before? Or what are your what is your outlook on that field?

[Jorge Francisco Scarinci, CFO, Finance Manager & IR Manager at Banco Macro]

I mean, when you look at Banco Macro and our track record, we always are trying to find opportunities in the markets. So of course, if there is an opportunity, we are going to analyze it. Of course, price is very important. The physical presence of branches, type of businesses, overlapping of branches, we consider all that. So for the moment, there's nothing on the table, but we are open to analyze any potential target as always, as we have been doing the last twenty two years.

[Matías Cattaruzzi, Senior Equity Research Analyst at Adcap Grupo Financiero]

Great. And then on loan growth opportunities going forward, which should be the mix going forward? We've seen some rising NPLs on consumer lending. Are you shifting to corporates and small and medium enterprises? Or what's your outlook?

[Jorge Francisco Scarinci, CFO, Finance Manager & IR Manager at Banco Macro]

We maintain our policy of being a universal bank and tackling commercial and consumer lending with the same appetite. Of course, in this volatile scenario, we are a bit more conservative in some requirements for both type of loans, commercial and consumer, and of course, with the higher interest rates. But that's we are not stopping one in order to focus into the other. No.

[Matías Cattaruzzi, Senior Equity Research Analyst at Adcap Grupo Financiero]

Our

[Operator]

next question comes from Shyamalie van der Poorten. What is the inflation adjustment item in the P and L? Is it due to inflation accounting?

[Jorge Francisco Scarinci, CFO, Finance Manager & IR Manager at Banco Macro]

REPRESENTATIVE:] Yes, it's due to inflation accounting.

[Operator]

Next question from Jonti Fish. What real growth for loans can we expect for 'twenty five and 'twenty six?

[Jorge Francisco Scarinci, CFO, Finance Manager & IR Manager at Banco Macro]

Well, in terms of loan growth for 'twenty five, I have been commenting that 60%. And for 2026, for the moment, we are forecasting a 45% real loan growth.

[Operator]

There are no more questions at this time. This concludes the question and answer session. I will now turn over to Mr. Nicolas Tohis for final considerations.

[Nicolás Torres, Investor Relations at Banco Macro]

Thank you for your interest in Banco Macro. We appreciate your time and look forward to speaking with you again. Have a good day.

[Operator]

This concludes Banco Macro's conference. Thank you.

Participants

Analysts

• Nicolás Torres, Investor Relations at Banco Macro
• Ernesto Gabilondo, Director - LatAm Financials Bank of America at Bank of America Merrill Lynch
• Jorge Francisco Scarinci, CFO, Finance Manager & IR Manager at Banco Macro
• Brian Flores, VP - Equity Research at Citi
• Yuri Fernandes, Executive Director at JP Morgan
• Matías Cattaruzzi, Senior Equity Research Analyst at Adcap Grupo Financiero