Banco Macro reported second-quarter 2026 earnings that exceeded analyst forecasts, though its shares declined in after-hours trading as executives revised down loan growth targets for the year.
The bank posted earnings per share of $1.92, surpassing the $1.46 consensus estimate by 31.5%. Net income reached ARS 206.8 billion, a 39% increase from the prior quarter and 4% higher year-on-year. Adjusted net income, excluding ARS 14.2 billion in restructuring charges, totaled ARS 221 billion. Revenue declined 0.73% to $941.34 million, falling short of the $948.22 million forecast.
Return on equity improved, with adjusted annualized ROE rising to 14.3% from 9.9% in the first quarter. Reported ROE increased to 13.4% from 10%. Net interest income remained flat sequentially at ARS 1.03 trillion, up 11% from the same period last year. The efficiency ratio stood at 33.9%, while operating expenses totaled ARS 450 billion.
Asset quality metrics showed a net non-performing loan ratio of 6.25% as of June, below the system average of 7.7% reported in May. The total coverage ratio reached 95.4%, with Stage 3 loan coverage at 148.8%. The Stage 3 loans ratio edged up to 4.1% from 3.8%. Commercial NPLs improved to 2.9%, while consumer NPLs increased to 8.4%.
Capital and liquidity positions remained robust. The Tier 1 capital ratio was 28%, well above the 11.5% regulatory requirement. The loan-to-deposit ratio was 79%, with liquid assets equivalent to 74% of deposits. The bank’s private sector loan market share held steady at 8.2%.
Despite the strong earnings performance, Banco Macro’s stock fell 1.62% to $74 in after-hours trading, following a prior close of $75.22. The shares remain far below their 52-week high of $106.15 but well above the low of $38.30. The bank’s P/E ratio is 33.4, with a dividend yield of 7.2% and a beta of 0.45.
Management revised its 2026 guidance downward. Loan growth is now expected in a range of 2% to 5% in real terms, down from the prior target of 15% to 20%. Deposit growth is projected at about 10% in real terms. The net interest margin outlook was raised to above 20% for the full year, up from an initial target of 20%. Adjusted ROE guidance was increased to about 12%, while reported ROE is expected between 9% and 10% after restructuring charges.
The cost of risk is projected between 6.5% and 7% for 2026, with total NPLs expected to range between 5.5% and 6%. Stage 3 NPLs are forecast to remain well below 4%. The bank closed 18 branches in the quarter, reducing its total to 402. Restructuring efforts aim to lower the branch network to about 370 and headcount below 8,000 by year-end, from 8,180 employees at the end of Q2.
Long-term targets include a nominal ROE of about 20% by 2030 and an increase in primary customer penetration from 30% to 50%. Executives highlighted digital initiatives, including a loyalty program and a WhatsApp-based conversational banking channel serving 6 million customers, as key drivers of future growth.
