Macro Bank (NYSE:BMA) reported second-quarter 2026 net income of ARS 206.8 billion, up 39% from the prior quarter and 4% from a year earlier, as gains from financial instruments and lower loan-loss provisions outweighed pressure from moderating loan yields and continued restructuring costs.
Nicolás Torres, investor relations executive at Banco Macro, said the quarterly result translated into an annualized return on equity of 13.4%. Excluding ARS 14.2 billion in after-tax restructuring charges, adjusted net income was ARS 221 billion and adjusted annualized ROE was 14.3%, up 4.4 percentage points from the first quarter.
Margins Stable as Funding Costs Decline
Net interest income was broadly unchanged from the first quarter at ARS 1.03 trillion and increased 11% from the second quarter of 2025. Net interest margin, including foreign-exchange effects, declined to 24% from 25% in the prior quarter, largely because of a lower FX contribution.
Asset yields fell to 41% from 44%, reflecting a 327-basis-point decline in average lending rates. However, the average cost of funding dropped more sharply, to 19% from 24%, aided by lower rates paid on private-sector peso deposits.
Total deposits stood at ARS 14.7 trillion, down 1% sequentially but up 4% year over year. Deposits represented 76% of liabilities. Scarinci said the bank now expects deposit growth of about 10% in real terms for the full year, with peso deposits growing roughly in line with inflation and dollar deposits increasing somewhat faster.
Macro Bank’s loan portfolio expanded 3% during the quarter to ARS 12.6 trillion, led by commercial lending. Consumer lending represented 71% of the gross portfolio at quarter-end, while commercial loans accounted for 29%.
Management reduced its forecast for full-year real loan growth to a range of 2% to 5%, citing higher domestic interest rates in the pre-election period. Scarinci said the bank expects commercial lending to outperform consumer lending over the next two quarters, with demand concentrated in mining, oil and gas, agribusiness and potentially construction.
Asset Quality Remains a Focus
Management said Argentine banking-system asset quality remained under pressure, with systemwide nonperforming loans reaching 7.7% as of May. Banco Macro cited a reported NPL ratio of 6.25% in its quarterly highlights, below the system level, and said its loan-loss coverage ratio stood at 95.4%, compared with 86.3% for the system.
In a more detailed discussion, the bank said its Stage 3 loan ratio rose to 4.1% from 3.8% in the prior quarter. Stage 3 coverage was 148.8%. Scarinci emphasized the difference between the bank’s own-risk metrics and reported delinquency figures that can be affected by customers’ nonperformance elsewhere in the financial system.
Consumer credit conditions remained weaker than commercial credit conditions. Consumer NPLs rose to 8.4% from 6.9% in the first quarter, though they remained below the system’s 12.8% rate. Commercial NPLs were cited at 2.9%, below the 3.5% system average.
For year-end, Scarinci said Macro Bank expects total NPLs in a range of 5.5% to 6%, cost of risk between 6.5% and 7%, and total coverage to remain above 90%. The bank expects Stage 3 NPLs to be below 4% by the end of 2026.
Restructuring Continues as Digital Investments Expand
Operating expenses reached ARS 450 billion in the second quarter, while the efficiency ratio rose to 33.9% from 32% in the prior quarter. The bank continued to reduce its physical footprint, closing 18 branches during the quarter. It ended June with 402 branches, down 89 from a year earlier, and 8,180 employees, down 8% year over year.
Scarinci said the bank expects to finish 2026 with roughly 370 branches and fewer than 8,000 employees. Restructuring costs are expected to continue during 2026, while management expects the savings from lower staffing and branch counts to become more visible in 2027. The CFO forecast reported ROE of approximately 9% to 10% for 2026 after including one-time restructuring expenses.
Chief Executive Officer Juan Parma said the bank is investing the savings from its network restructuring in technology, customer acquisition and new fee-generating businesses. During the quarter, the bank nearly completed deployment of a new retail banking application, unified digital onboarding processes and introduced extended operating hours for commercial customers.
Parma also highlighted the launch of a loyalty program, a relationship-pricing capability, an acquiring platform, a wealth-management app and auto insurance offerings. The bank additionally launched a conversational banking channel through WhatsApp, allowing customers to interact through text, audio and images using an artificial intelligence agent.
Capital Strength Supports Growth Options
Macro Bank ended the quarter with a Tier 1 capital ratio of 28%, compared with an 11.5% regulatory requirement. Liquid assets equaled 74% of deposits, while the loan-to-deposit ratio was 79%.
Scarinci said the Tier 1 ratio declined from 32% primarily because of a new methodology for calculating operational risk-weighted assets, but described the bank’s capital position as the highest among Argentine banks. Management said surplus capital could be used for organic growth, acquisitions, dividends or share repurchases, though any buyback decision would rest with the board.
Looking toward its 2030 strategy, management said it expects a transition in which margins gradually compress as inflation and interest rates decline, while credit volumes expand. Parma said the bank aims to increase the share of primary customers to 50% from 30%, expand fee income from wealth management and insurance, and continue improving efficiency. Scarinci said Macro Bank targets a nominal ROE of about 20% by 2030 under an assumption that Argentina moves to single-digit inflation.
About Macro Bank (NYSE:BMA)
Macro Bank (NYSE: BMA) is the American depositary receipt program of Banco Macro SA, one of the largest privately owned banks in Argentina. Headquartered in Buenos Aires, the institution delivers a comprehensive suite of banking solutions to retail, corporate and agricultural customers across the country. Through its extensive branch network and digital platforms, Macro Bank aims to serve diverse client segments with tailored financial products and services.
The bank’s offerings span traditional deposit accounts—including checking, savings and term deposits—alongside payment and transaction services.
