Banco Macro's Q3 Shows Mixed Results

Nov.26.08 | About: Banco Macro (BMA)

The Argentine Bank, Banco Macro (NYSE: BMA), for the quarter ended September 30, reported a net income of AR$163 million (US$49 million), an improvement from the AR$161 million reported of 2Q '08. EPS came in at AR$0.24 (US$0.07). Based on the last quarter's results, annualized ROE reached 24.2%, and ROA 2.9%.

Quarter-on-quarter, net financial income was down (7.8%), arriving at AR$367.4 million (US$110 million). On the other hand, fee income was up by 8.42%, to AR$189.2 million (US$56.8 million).

The bank's efficiency ratio (expenses/net financial and fee income) showed a slightly worse performance, rising to 53.5%, from 51.7% in 2Q '08, which was due in part to a slight increase in personell, according to the company's official statements.

Banco Macro's total deposits base amounted to AR$16.8 billion (US$5.05 billion) at the end of the quarter, representing 80% of total liabilities. Average cost of funds was reported at 6.9% for September 2008.

The bank reported exess capital at AR$1.6 billion (US$480 million) at the end of 3Q '08, and a capitalization ratio of 22.1%. Required capitalization ratio by the Central Bank is 10.5%.

Non-performing assets were reported at 2.04%, up 0.1 percentage point from previous quarter, but a more notable increase of 0.7 percentage points from 3Q '07, when non-performing assets were reported at 1.34%.

As of October 30, the company had repurchased 62.9 million shares, out of 650.7 million shares outstanding. The repurchases totalled AR$339.9 million (US$102 million).

On October 29, the Board of Directors increased the share buy-back program (which was launched January 8, 2008), to a total of 102 million ordinary shares, from 68 million originally, at a total amount of AR$495 million (US$148.6 million).

Banco Macro's shares are traded on Buenos Aires [BMA], and have NYSE listed ADR's. At the current share price of AR$2.99, the company trades at a P/E of 3.13, and a YTD performance of (-59.7%).

BMA's ADR ratio is 1:10, and the current exchange rate is AR$3.34/US$.

The company's interim statements can be found in our download section.