Banco Macro Maintains Strong Solvency and Liquidity Despite Year-Over-Year Profit Decline

Solid Capital Ratios and Liquidity Cushion Highlight Resilience

Banco Macro (NYSE: BMA) revealed its third-quarter 2025 earnings, painting a nuanced picture: While headline profits and operating income are down sharply from the prior year, the bank's capital base and liquidity remain firm. For investors and analysts tracking Argentine banks, this blend of caution and strength provides critical context as the financial sector navigates macroeconomic headwinds.

Net Income Down 35%, But Capital Adequacy and Excess Capital Remain High

Through the first nine months of 2025, Banco Macro reported net income of Ps.176.7 billion, marking a 35% decline compared to the same period last year. Operating income, after expenses, totaled Ps.1.03 trillion—a sharp 64% drop year-over-year, reflecting broader pressures in the Argentine economy.

Despite these declines, Banco Macro's capital position remains robust. As of the end of Q3 2025, the bank reported:

Lending and Deposits Growth Outpace Inflation—With Currency Mix Shifts

In Q3 2025, Banco Macro's total financing rose 3% quarter-over-quarter to Ps.10.12 trillion and surged 69% year-over-year, led by a 10% quarterly increase in USD-denominated lending. Conversely, peso financing edged 2% lower—a reflection of local market dynamics and dollarization trends.

On the deposit side, totals grew 5% quarter-over-quarter and 11% year-over-year to Ps.11.81 trillion, making up 75% of total liabilities. Private sector deposits rose a robust 6% quarter-over-quarter. There was, however, a divergence between currency types: Peso deposits fell by 1%, while USD deposits climbed 3%.

Stable Asset Quality: Non-Performing Loans Well-Covered

Banco Macro’s non-performing loan (NPL) ratio held steady at 3.19% in Q3 2025, with a healthy coverage ratio of 120.87%. This indicates that the bank’s loss provisions more than adequately cover its NPL exposures—a positive signal in a challenging credit environment.

Branch Network and Customer Base Continue to Grow

Banco Macro operates 469 branches and employs 8,811 staff across Argentina, serving over 6.29 million retail clients—including 2.5 million digital customers—and more than 219,000 corporate clients in 23 out of 24 provinces.

Key Takeaways: Risk Management and Growth Amid Headwinds

Banco Macro’s third-quarter results underscore its resilience. While earnings and operational efficiency remain under pressure from economic challenges and inflationary forces, the bank’s robust capital, liquidity, and coverage metrics position it well to navigate further volatility. The rise in dollar-based financing and deposits suggests customers and management are proactively adjusting to Argentina’s unique monetary landscape.

Investors will be watching the upcoming earnings call on December 1, 2025, for more color on management’s outlook and strategy. For now, Banco Macro stands out for maintaining a strong financial foundation—even as profit growth remains a longer-term question.

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