Banco Macro S.A. released its third‑quarter 2025 financial results on November 26, 2025, reporting a 35% year‑over‑year decline in net income to Ps.176.7 billion for the first nine months of the year, compared with Ps.276.5 billion in the same period in 2024. Operating income after general and administrative expenses and personnel costs fell 64% to Ps.1.03 trillion, underscoring a sharp contraction in profitability.
The decline in earnings is driven primarily by a 18.7% net interest margin in Q3 2025, down from 23.5% in Q2 2025 and 31.5% in Q3 2024. The compression reflects a combination of lower interest‑rate spreads, currency‑related headwinds, and higher cost of funds in a high‑inflation environment. The bank’s return on average equity (ROAE) slipped to 4.5% and return on average assets (ROAA) to 1.3%, both below the 2024 levels, indicating reduced efficiency in generating earnings from its asset base.
Despite the earnings decline, Banco Macro’s balance sheet remains robust. Capital adequacy, measured by the Basel III common equity tier 1 ratio, stands at 29.9%, well above regulatory minimums. Liquidity ratios and the ratio of liquid assets to total deposits remain healthy, supporting the bank’s ability to meet short‑term obligations. Financing activity grew 69% year‑over‑year, while deposits increased 11%, suggesting continued customer confidence and a solid core banking foundation.
Market reaction to the earnings has been mixed. Some analysts have expressed concern over the margin compression and the sharp drop in operating income, while others have highlighted the bank’s strong capital position and deposit growth as mitigating factors. The overall sentiment reflects a balance between the immediate profitability challenges and the longer‑term resilience of the bank’s balance sheet.
The earnings release signals that Banco Macro is navigating a challenging macroeconomic environment marked by high inflation and currency volatility. While profitability has contracted, the bank’s capital strength and deposit growth provide a buffer that may support future earnings recovery as interest‑rate spreads normalize and operational efficiencies are realized. Investors will likely monitor subsequent guidance and management commentary for signals of how the bank plans to address margin pressures and sustain growth in its core banking activities.
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