Banco Macro's Q4 2024 Earnings Call: Contradictions in Loan Growth, Inflation, and Capital Strategy

These are the key contradictions discussed in Banco Macro's latest 2024Q4 earnings call, specifically including: Loan Growth Expectations, Inflation Forecasts, Deposit Strategy, and Capital Consumption Plans:



Revenue and Profitability Trends:
- Banco Macro reported a net income of Ps. 102.2 billion in Q4 2024, 4% higher than the previous quarter.
- The increase in net income was primarily driven by lower net interest income and higher net fee income, along with a decrease in net monetary position losses due to easing inflation.

Loan Growth and Portfolio Quality:
- Total financial loans increased by 18% quarter-on-quarter and 45% year-on-year, reaching Ps. 5.8 trillion.
- Despite the increase in loan growth, asset quality remained under control, with a nonperforming total financial ratio at 1.28% and a coverage ratio at 158.81%.

Capital and Liquidity Position:
- The bank maintained excess capital of Ps. 2.8 trillion, representing a capital adequacy ratio of 32.4% and a Tier 1 ratio of 31.6%.
- The liquid assets to total deposits ratio was at 79%, indicating strong liquidity.

Deposit Trends and Funding Strategy:
- Total deposits decreased by 3% quarter-on-quarter but increased by 15% year-on-year, reaching Ps. 8.4 trillion.
- The bank aims to fund loan growth primarily through deposit growth, with a target of 35% growth in 2025, and secondarily through a reduction in the securities portfolio.