Banco Macro Posts 131% Profit Surge in Q1 2026
Argentina’s largest private-sector bank by deposits reported strong first-quarter results Thursday, with Benzinga publishing the full earnings-call transcript showing a dramatic year-over-year profit recovery.
Profit Surges on Lower Funding Costs
Banco Macro S.A. (NYSE: BMA) generated net income of 139.8 billion pesos in the first three months of 2026. That figure was 28% above the prior quarter and 131% above the same period a year earlier. The bank’s net interest income reached 975.2 billion pesos, rising roughly 7% from Q4 2025 and 27% from Q1 2025. Interest expense fell sharply, dropping 21% quarter over quarter to 485.7 billion pesos. Lower funding costs provided much of the tailwind behind the profit improvement.
Management Holds Conservative Return Targets
Chief Financial Officer Jorge Iscarincini and investor-relations officer Nicolas Tojis led the call. Management held its full-year guidance for nominal loan growth at 42% and deposit growth at 34%. Both figures assume an annual inflation rate of around 28%, meaning real growth projections are more modest. The bank’s annualised return on equity stood at 10%, though management set its official ROE guidance closer to 8%. Executives said they preferred to wait for additional quarters before revising that target upward.
Background: Argentina’s Banking Sector Under Pressure
Argentine banks have operated through years of currency volatility, capital controls, and runaway inflation. Banco Macro, founded in 1976 and listed on the New York Stock Exchange, has navigated successive macro shocks by maintaining conservative lending standards and a wide branch network across Argentina’s interior provinces. The current recovery in profitability mirrors a broader stabilisation effort under the Milei administration’s austerity programme, which has succeeded in compressing monthly inflation from peak double-digit rates.
Asset Quality Slips but Coverage Stays Solid
Non-performing loans ticked up to a ratio of 5.4%, signalling some borrower stress as real wages adjust. The bank’s coverage ratio remained near 110%, suggesting provisions are adequate for current conditions. Management guided cost of risk for the full year between 5.5% and 6%. On the cost side, Banco Macro continued a streamlining push, cutting its branch count by 24 locations and trimming headcount by 3%. Executives said negative real expense growth remained a priority heading into the second half of 2026.
Operating income before expenses fell 3% from Q4 2025 but was 15% higher than a year ago, pointing to improving underlying momentum even as near-term quarterly comparisons tighten.
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