It is one of the country’s most profitable financial institutions, with a 21.2% RoE. The balance sheet has a low leverage level of 7.3 times assets to equity, thanks largely to the merger of the bank with two regional entities, acquired in 2004 and 2006, which were themselves extremely low-leveraged. The bank is now in the process of merging the recently acquired Banco Suquía.
In terms of customer initiative, Banco Macro is Argentina’s fastest growing bank in terms of personal loans extended to payroll accounts. In Argentina, banks can deduct loan payments from a borrower’s salary, yielding a low level of delinquencies. The bank has the largest branch network of its peers and ranks as the fourth largest bank in the country.
It turned in an impressive financial performance in 2006, with a 61% rise in net profits, a 102% increase in Tier 1 capital and 53% growth in assets. Apart from the improved RoE, the bank managed a sharp reduction in non-performing loans (NPLs) to 2% of the loan book in 2006 from 5.3% in the previous year.
“Banco Macro has become one of the leading banks in Argentina after the 2001 domestic financial crisis,” says chief executive Jorge Brito. “Since then, it was able to take advantage of its relatively higher liquidity and capitalisation standards, and positioned itself among the three largest private banks in the country. With a leading presence in the interior of the country, Banco Macro focuses on lending to SMEs and low-income people, although it has a universal menu of banking products.”
