BMA

Good morning, ladies and gentlemen, and thank you for waiting. At this time, we would like to welcome everyone to Banco Macro's first quarter 2026 earnings conference call. We would like to inform you that the first quarter 2026 press release is available to download at the investor relations website of Banco Macro, www.macro.com.ar/relaciones-inversores. Also, this event is being recorded, and all participants will be in a listen-only mode during the company's presentation. After the company's remarks are completed, there'll be a question and answer session. At that time, further instructions will be given. It is now my pleasure to introduce our speakers. Joining us from Argentina are Mr. Jorge Scarinci and Chief Financial Officer, and Mr. Nicolás Torres, IR. Now I will turn the conference over to Mr. Nicolás Torres. You may begin your conference.

Good morning, and welcome to Banco Macro's first quarter 2026 conference call. Any comment we may make today may include forward-looking statements which are subject to various conditions, and these are outlined in our 20-F, which was filed to the SEC and is available at our website. First quarter 2026 press release was distributed yesterday, and it's available at our website. All figures are in ARS and have been restated in terms of the measuring unit current at the end of the reporting period. As of 2020, the bank began reporting results applying hyperinflation accounting in accordance with IFRS, IAS 29, as established by the Central Bank. For ease of comparison, figures of previous quarters have been restated applying IAS 29 to reflect the accumulated effect of the inflation adjustment for each period to March 31st, 2026. I will now briefly comment on the bank's first quarter 2026 financial results.

Banco Macro's net income totaled ARS 139.8 billion in the first quarter of 2026, 28% or ARS 30.2 billion higher than the sum posted in the previous quarter and 131% or ARS 39.2 billion higher than a year ago. In the first quarter of 2026, the annualized return on average equity and the annualized return on average assets were 10% and 2.4% respectively. Excluding restructuring expenses, ARS 4.9 billion after tax, the first quarter 2026 net income would have totaled ARS 152.9 billion, and the annualized ROE and ROA would have been 10.9 and 2.6% respectively. In the first quarter of 2026, operating income before general and administrative and personnel expenses totaled ARS 1.23 trillion, 3% or ARS 43.6 billion lower than the fourth quarter of 2025 and 16% or ARS 169.2 billion higher than the same period of last year.

In the first quarter of 2026, operating income after general, administrative and personnel expenses was ARS 569.8 billion and 15% or ARS 73.8 billion higher than the fourth quarter of 2025 and 24% or ARS 108.6 billion higher than a year ago. The bank's first quarter 2026 net interest income totaled ARS 975.2 billion, 7% or ARS 59.7 billion higher than the fourth quarter of 2025, and 27% or ARS 207.2 billion higher year-on-year. This result is due to a 5% decrease in interest income and a 21% decrease in interest expense. In the first quarter of 2026, interest on loans represented 72% of total interest income. In the first quarter of 2026, the bank's strategy to remain short in US dollars proved successful.

The combination of the short dollar position together with the long futures position and the allocation of the ARS generated by the said sale of US dollars resulted in a net gain. The bank's first quarter 2026 interest expense totaled ARS 485.7 billion, decreasing 21% or ARS 132.7 billion compared to the previous quarter, and 27% or ARS 104 billion higher compared to the first quarter of 2025. In the first quarter of 2026, interest on deposits represented 93% of the bank's total interest expense, decreasing 22% or ARS 129.1 billion quarter on quarter due to a 470 basis point decrease in the average rate paid on deposits, while the average loan price of deposits increased 1%. On a yearly basis, interest on deposits increased 24% or ARS 87.1 billion.

In the first quarter of 2026, the bank's net interest margin, including FX, was 25.3%, higher than the 21.7% posted in the fourth quarter of 2025 and the 23.2% posted in the first quarter of 2020. The first quarter of 2026, Banco Macro's administrative expenses plus employee benefits totaled ARS 349.8 billion, 22% or ARS 101.5 billion lower than the previous quarter due to lower employee benefits, which decreased 28%, and lower administrative expenses, which decreased 9%. On a yearly basis, administrative expenses plus employee benefits increased 3% or ARS 9 billion. Employee benefits decreased 28% or ARS 89.6 billion quarter on quarter. Compensation and bonuses decreased 61% or ARS 74.8 billion. In the first quarter of 2026, the bank recorded ARS 19.9 billion restructuring expenses related to early retirement plans and severance payment provisions.

On a yearly basis, employee benefits increased 3% or ARS 6 billion, and excluding the restructuring expenses, employee benefits would have decreased 8% or ARS 18.7 billion quarter-on-quarter and 6% or ARS 13.9 billion year-on-year. It is worth mentioning that in the first quarter of 2026, Banco Macro reduced its branch network by 24 branches down to 420 from 444 in December of 2025 and reduced its headcount by 3%. In the first quarter of 2026, the result from the net monetary position totaled ARS 349.8 billion loss, 15% or ARS 46 billion higher than the loss posted in the fourth quarter of 2025, and 1% or ARS 4.4 billion lower than the loss posted one year ago. Higher inflation was observed during the quarter, 158 basis points above the fourth quarter of 2025.

Inflation was 9.44% in the first quarter of 2026, compared to 7.86% in the fourth quarter of 2025. In the first quarter of 2026, Banco Macro's effective income tax rate was 34.3%. In the first quarter of 2025 to 2026, Banco Macro's total financing decreased 9% or ARS 1.1 trillion quarter-on-quarter, totaling ARS 10.63 trillion, and increased 5% or ARS 458.9 billion year-on-year. In the first quarter of 2026, ARS financing decreased 9%, while U.S. dollar financing decreased 6%. It is important to mention that Banco Macro's market share over private sector loans as of March 2026, reached 8.2%, decreasing 40 basis points compared to December of 2025.

On the funding side, Banco Macro's total deposits decreased 7% or ARS 993.7 billion quarter-on-quarter, and increased 10% or ARS 1.22 trillion year-on-year, totaling ARS 13.99 trillion and representing 76% of the bank's total liabilities. Private sector deposits decreased 8% or ARS 1.1 trillion quarter-on-quarter. In the first quarter of 2026, peso deposits decreased 4%, while US dollar deposits decreased 7%. Banco Macro's market share over private sector deposits as of March 2026 total 7.9% unchanged from the previous quarter. In terms of asset quality, Banco Macro's non-performing total financial ratio reached 5.4%. It is worth mentioning that Banco Macro's non-performing total financial ratio under expected credit losses, Stage 3, plus 90 days past due loans deteriorated 84 basis points during the first quarter of 2026, totaling 3.64% versus 2.8% in the fourth quarter of 2025.

The final non-performing ratio is affected by mandatory classification of customers under central bank rules, taking into consideration customers' behavior across the financial system. Banco Macro's non-performing total financial ratio, excluding mandatory classification of customers, increased 109 basis points, reaching 4.73% in the first quarter of 2026 versus 3.64% in the fourth quarter of 2025. Consumer portfolio non-performing loans deteriorated 168 basis points up to 6.92% from 5.3% in the fourth quarter of 2025. While commercial portfolio non-performing loans deteriorated 66 basis points in the first quarter of 2026, up to 134% from 0.68% in the fourth quarter of 2025. The coverage ratio, measured as total allowance under credit losses over non-performing loans under central bank rules, reached 109.79% in the first quarter of 2026.

Had the coverage ratio been 90%, which is similar to the coverage ratio of other private banks in Argentina, net income in the first quarter of 2026 would have totaled ARS 219.7 billion, representing an adjusted ROE of 15.7%. Banco Macro continued showing a strong solvency ratio with an excess capital of ARS 4 trillion, 32.4% capital adequacy ratio and 32.4% Tier 1 ratio. The bank's liquid assets remain at an adequate level, reaching 78% of its total deposits in the first quarter of 2026. The bank seems to make the best use of this excess capital. We have accounted for another positive quarter. We continue showing a solid financial position. Asset quality remain under control and closing model. We keep on working to improve more our efficiency standards, and we keep a well-atomized deposit base.

At this time, we would like to take the questions you may have.

Okay. At this time, we are going to open it up for questions and answers. If you would like to ask a question, please press the Q&A button at the bottom of the screen, or to ask questions on audio, click on Raise Hand. You will receive a request to activate your microphone. Our first question comes from Brian Flores with Citi.

Hi, team. Good morning, and thank you for the opportunity to ask question. The first one is the usual one we have. If you have any revision on guidance, we know some of your peers have revised growth a bit in both loans and deposits. Just checking with you if the previous ranges you provided are still valid. I wanted to maybe do a double click on asset quality. We saw still obviously some NPL deterioration, and we know you kept the coverage ratio at healthy levels. I just wanted to check with you if, going forward or you're already seeing better trends in terms of provision and customer behavior. Thank you.

Hi, Brian. This is Jorge Scarinci. On your first question about guidance in terms of growth, loans or deposits, for the moment, we are maintaining the guidance that we gave last quarter. What we are seeing basically is that the first quarter, when you look at growth in loans, there was a decline. There was an increase in real times when you compare that on a yearly basis. Something to mention here is when you have a look at advances, sorry, overdraft, that is one of the components of our loans. This line is usually used as a way of allocating excess liquidity. As of March 2026, the market share in this line was 14.6%, well below the 18.1% market share that we posted one year ago. This is quite affecting and that's why the 5% growth on annual basis.

However, when you have a look at other lines like pledges, personal loans, discounted documents or mortgages, they are growing above 20% on a yearly basis. Because of this, and also.

Because of what we've seen in April, credit demand, both in ARS and in USD, and what is going on in May, that we are seeing a recovery in loan demand. That's why that we are maintaining our guidance for loans. Similar trend with the deposits. We are maintaining the guidance on the deposits, even though on a quarterly basis, there was a decrease. We are seeing some upward trend in the current quarter onwards. In terms of your second question, asset quality, I think that is worth mentioning here that even though there was a deterioration that we've seen in the whole portfolio that reached 5.4%, we are still showing the best NPL, so total loan ratio among our peers. Also when you look at the coverage ratio, that is almost 110%, this is also a ratio that we are showing the highest among our peers.

We commented in the press release that if we would be going down to a level of 90% of coverage, and that is the average of our peers, the adjusted ROE for the quarter, of course, annualized, would have been 15.7%. It is also worth mentioning that what we saw between February and March, and also between March and April, there was a positive behavior on the consumer Stage 3 trend. So what we saw is that February apparently was a kind of a peak for the Stage 3 consumer, and having March and April showing better trends or positive trends there. Also we saw in terms of commercial, that the deterioration speed was slowed down in both months.

Going forward, we are also maintaining our cost of risk guidance, and we believe that we are close to the peak on this deterioration of asset quality trend that we have seen in the last 12 months. That's it, Brian.

Perfect. 5.2 or approximately 5.2 cost of risk, real ROE close to 8%, right? Just confirming with you.

Yeah. I was talking about guidelines for growth in terms of loans and deposits and also in terms of asset quality. Cost of risk, yes, it's going to be, I think, more than between five and a half and six. In terms of profitability, it is pretty clear that we posted, I would say, the best quarter among Argentine banks, and it was slightly above the annualized ROE guidance that we gave last quarter. Because of what we are seeing in terms of growth in this second quarter should be another good quarter for the bank. For the moment, I think that we are going to be maintaining the ROE guidance of area 80% on the adjusted ROE, that is without the non-recurring items that we are showing in the quarter. We would like to wait another quarter to see if we are going to increase our ROE guidance.

For the moment, ROE guidance is the same 80% area for the adjusted ROE.

Super clear. Thank you, Jorge.

Welcome, Brian.

Our next question comes from Tito Labarta with Goldman Sachs.

Hi, good morning, Jorge and Nicolás. Thanks for the call and taking my question. I guess following up on the ROE guidance in particular, more if we look at the trends, right, of cost of risk is likely to come down as asset quality maybe stabilizes. You had some good NIM performance in the quarter, mainly due on lower funding costs. Do you expect that to revert where NIM should come down for the rest of the year? Can you sustain this level of NIM, which would then imply perhaps upside risk to that ROE guidance? Just maybe thinking how the NIM should evolve from here and impact profitability. Thank you.

Hi, Tito. In terms of NIMs, we are seeing going forward, I think a small contraction. I would say that the NIM for the first Q was slightly above the one that we were expecting. I would say that the average of the year should be quite similar than the average of last year. I think that is one of the reasons that could be, at some point, compensating the level of maintaining the same cost of risk going forward. That's why we are maintaining this ROE guidance. Again, we want to be here a bit conservative and wait one more quarter to see or to crystallize if the bottom line is performing better than expected.

Okay. No, that's clear, Jorge. Thanks for that. Maybe just to follow up there. The pressure on NIM, would it come because you expect Funding costs to go up, or you think there'll be some pressure on the asset yields as rates have come down, also because you're growing loans faster than deposits? Could that also put some pressure on NIM, just to understand where the NIM pressure could come from? Thank you.

Yeah. What we are seeing is that inflation levels should be going slightly down on a monthly basis going forward. That is going to bring nominal interest rates slightly down. I would say that we could be seeing slightly more pressure from assets yields compared to the funding cost that is also going to go down, but a bit more pressure on the asset side.

Okay. That's clear. Thank you, Jorge.

Our next question comes from Ernesto Gabilondo with Bank of America.

Hi. Good morning, Juan, Jorge, and Nicolas. Congrats in your results, and thanks for the opportunity to ask questions. My first question will be a follow-up on Brian's questions on asset quality. You mentioned in the press release you made a recalibration of your model based on the behavior of the customers of the system, and that this was required by the Central Bank of Argentina. In Mexico, we follow a similar practice. In the first quarter, the Mexican banks also created higher provisions based on expected losses of the system, and they were considering the asset quality deterioration of the fintechs. Having said that, I asked to your peers in your conference calls if this practice is followed in Argentina, and they say no. It came to my surprise that you were the only one implementing it during the quarter.

Can you elaborate on why are you implementing it and the other banks don't, and especially as it was required by the regulator. Also, you are the only bank with an adequate reserve coverage ratio above 100%. The others don't. I also just want to understand if you are conservative in your ratio or you are just following the international standards. Thank you.

Ernesto, this is Juan. Thanks for your question. Let me take this one. As you saw in the release, we are quoting three metrics of delinquency. 5.4, 4.7, and 3.6. Okay? 5.4 is the more acid one, which includes the loans that are delinquent with us, plus the loans with us that are not delinquent, plus delinquencies outside Banco Macro. That's the most acid one. Is the one that Central Bank uses for reporting. There's the second indicator, 4.7, which is the loans that are delinquent with us, plus the loans that are current with us on the same customer. Basically, what you do is you include in your delinquency ratio assets that are current in your books, but that are attracted by assets with the same customer that are delinquent. Stage 3 is the methodology that we use for provisioning.

The cost of credit that you see in our results is driven by the Stage 3 delinquency calculation. That Stage 3 delinquency calculation is driven by our model, which is in alignment with accounting standards and includes actual delinquencies, plus indicators of risk of some loans that might be current but are higher risk, for example, because of its score range. Okay. That's the three distinctions. It's important to define that our cost of credit, the provisions that we book in our results, is driven by the Stage 3 calculation. In our case, for the first quarter 2026, 3.64%. In that metric is where Jorge mentioned that for the consumer book in Stage 3 metric, we've seen from February to March and from March to April, two consequent months of reduction.

We have not seen yet reduction on the commercial book in this stage 3 metric, but we have seen a slowdown in the speed of deterioration. Have I made a complex topic clear, Ernesto?

No. Super careful. Just wanted to understand that in these plus indicators of risk, you are being more conservative than the other banks, or it's just that your loan mix is showing you to recognize higher provisioning? Just wanted to understand this.

Yeah. Sorry, we missed that second part of your question. Bottom line, the short answer is yes, we are being more conservative. This does not, in our view, have to do with the outlook. It has to do with how conservative we are in our coverage. That conservatism is reflected in two ways. One is the model itself. Each bank has its own model. The model needs to comply with standards, but it might vary. That's one thing, the model itself. The second one is the recalibration. The recalibration is something that, by regulation, banks need to do at least once a year. What you do when you recalibrate is see the last 12 months and recalculate the probabilities of defaults.

When you are in an upward cycle of delinquency, every time you recalibrate and you take a look to the last 12 months instead of the last previous 12 months, naturally, the probability of default for each of the clusters of the model increases. What we've done is, because the regulation says that you need to recalibrate at least once a year, but you are free to recalibrate if you want every month. We have been more conservative and done more frequent recalibrations to keep our coverage adequate, because if not, what happens is, by the end of the year, if you don't do the recalibration early on, if you are in an upward cycle of delinquency, you may have a hit. Bottom line, again, we are being more conservative, both on the model design itself, but also on the periodicity of recalibration versus our peers.

The difference is significant. As you've seen, the average of our peers is in the 90%, and we are almost 110. Naturally, we should expect to, as delinquency reduces, to reduce the coverage as the recalibration starts reflecting those improvements. That's how we see it, Ernesto. Is that clear?

Yes, very clear. Thank you so much. I just have also a follow-up. Just if you can repeat your guidance for loan growth and deposit growth for this year. I know that you are not changing it, but just to double-check how was it before. Also another question in terms of your OpEx growth. Can you also remind us how should we think about the recurring OpEx growth for this year, excluding the restructuring costs? My last question is on your earnings expectations and ROE evolution throughout the year. I know you are right now at 11% and that you mentioned that you will wait for the second quarter to see if you can improve your guidance. How should we think about the seasonality of the ROE? The second quarter should be a little bit lower and then should be trending up.

Just wanted to understand how should we think about the earnings and the ROE evolution throughout the year to meet your guidance?

Ernesto, in terms of the guidance for growth, we are still maintaining the loan growth guidance of 42% nominal growth for the year and 34% nominal growth in deposits for the year. That is the guidance that we are maintaining in terms of growth.

Sorry, in real terms?

It depends the inflation that you have in your model, but we have an inflation level of 28%.

Perfect.

Second question, in terms of expenses going forward, it is pretty clear, and we have explicitly commented before that we are in a process of making the bank more efficient, even though we were showing excellent efficiency levels. We are in the process of becoming more efficient. Honestly, the idea is to continue at least second quarter with the mid-parts of the third quarter. It depends on how this evolves, but in the way that we are reducing the number of employees and the number of branches. Of course, we do not have exactly the numbers going forward, but a very important proof is that when you look at expenses on a yearly basis, we are in a negative in real terms.

The idea is to continue going forward in the following quarters to show slightly negative numbers in terms of the evolution of expenses in real terms. If you allow me, Jorge, this is in line also with the guidance we gave by the end of last year, the fourth quarter last year, regarding this matter, that you should continue seeing in our quarterly results restructuring costs and continued reduction in operational costs in real terms. You're seeing it again in the first quarter, and we expect that trend of investing in creating sustainable saves going forward in the next quarters.

Okay, just for me to understand, if we exclude the restructuring costs, should we expect OPEX a little bit declining or relatively flat this year?

If you are excluding this, going forward, the idea is to keep on showing a negative real rate of growth.

Okay, understood. Perfect.

Actually, I'm just quoting the comments in the release, but if you take out the restructuring costs, our recurrent costs would have decreased 6% year-on-year, which Jorge mentioned before. We expect that trend of reduction in real terms of cost, excluding restructuring, to be maintained.

Okay. This could be a little bit messy because also in the fourth quarter of last year, you created some non-restructuring costs now. Just wanted to understand if we should be thinking on a yearly basis about this 6% decrease, or it could be also considering fourth quarter also created some of this.

That is something that we are showing the first quarter, and we might be showing the second quarter to continue reducing expenses in real terms. That's the idea on what Juan was commenting.

Perfect.

To be specific, we do not provide guidance to this granularity level. We provide guidance on volume growth and ROE, trends in terms of guidance, but not specifics at this granularity level. We said that you would continue seeing reductions. You are, and you will.

Perfect. No, thank you so much. Just the last question on the seasonality of the earnings and the ROE.

Yeah. You are asking me to answer more like an analyst than a CFO. Honestly, I think that's your work. You are the specialist here. Going forward, we want to see if the trends that we are seeing the second quarter materialize in another good second quarter in order to have more elements to be more positive and increase ROE guidance. I think that's the seasonality on the ROE. Always, the fourth quarter is the good one, and it will depends on many macroeconomic variables what happen in the second and third.

Let me put it another word, guys. We've had an encouraging first quarter in comparison with our guidance. We've said that we are expecting another encouraging quarter for the second quarter. What we are saying is, we are not changing previous guidance because it may be too early. We are optimistic based on what we've seen in the first quarter, which is encouraging. Jorge mentioned slightly above guidance. I think that was a bit conservative. Actually, 8% guidance was adjusted ROE, and our adjusted ROE for the first quarter is 11.6. It's encouraging. We are seeing encouraging numbers for the second quarter. Of course, we cannot quote forward-looking specifics. In essence, what we are saying here is we want to be cautious before we update. Okay?

Our next question comes from Yuri Fernandes with JP Morgan.

Hey, guys. Good morning. Hi, Juan, Jorge, Nicolas. I would like to ask more a macro question on how you are seeing Argentina today, right? I think February was bumpy. March, the data was pretty good. How are you feeling, Juan, Jorge, Nicolas, like the economy right? Are you seeing a recovery? Are you seeing, I don't know, more demand? On top of that, I know we already had some questions on asset quality, but if you have any early delinquency indicator, right, how are you seeing April and May? When we go to your new NPL formation, the new bad loans, they are still a little bit up, but you are doing more provisions, and they are kind of stable, right? They are growing, but they are growing less.

My question is, I know it's hard to talk about credit peaks in Argentina, and I think you are being good in being conservative on your figures, but I'm just trying to get two callers here. One, if the economy is improving and you are seeing that, two, if it is recovering, the economy is also translating to these early delinquency NPLs, kind of somewhat peaking. I can ask a second topic after this question. Thank you.

Hi, Yuri. Yes, I think that the economy is showing some sign of recovery. When you look at industrial production indices, they are up on a monthly and yearly basis.

What we are seeing is that the harvest at this time of the year is, again, reaching record levels. I would say that the massive consumer sectors that were showing bad performance, the negative numbers that they are showing are less negative. I think that there are some hints that the economy is recovering, slowly but recovering. What we are seeing, and again, I think that we commented this before, is that we are seeing some good trends in the consumer stage 3 between February, March, and April. In terms of the commercial portfolio, it is still deteriorating, but the speed is lower than the one that we saw before. I think that the recovery of the economy is going to have a positive impact in terms of delinquency. The million-dollar question here is when this is going to impact the delinquency trend.

We still don't know if this is going to happen in May or June, or this will happen the third quarter, but for sure, the recovery of the economy is going to have a positive impact in terms of the delinquency cycle.

No, super helpful. If I may, another one just on deposits. I know there is seasonality in the first quarter, and this explained the quarter-over-quarter drop. On year-over-year, checking accounts and savings accounts, what you call the transactional deposits, right? The cheaper funding, they are growing less. I think they are now 41% of total. They were 48% one year ago of your total private deposits. Why is that? Why deposits, especially the cheaper ones? I know inflation has been coming down, so I would expect those deposits that have some kind of cost of opportunity to not decrease. Just checking if you have any color why the cheap deposits, they were a little bit weaker this quarter. Thank you.

You said it before, it's holiday seasons in Argentina. I think it's quite reasonable and logic that in terms of deposits, there were no growth, and in terms of transactional deposits, there was a decline. That's why we do not keep only the trend that we've seen in the first quarter because it's seasonally always the lowest quarter in terms of trend of deposits going forward. We think that this trend is going to turn around, and we are going to show some increase in pesos and dollar deposits. As I mentioned before, the 34% nominal growth in total deposits for the bank for the year, keeping the guidance.

Okay. No, thank you very much.

Welcome, Yuri.

Our next question comes from Carlos Gomez-Lopez with HSBC.

Hello, Juan, Jorge, Nicolas. Thank you very much for taking my question. Two questions. One is, you have a securities gains of ARS 70 billion on your bonds amortized cost. Just so that we understand, that is a voluntary sale of bonds that had appreciated. It should not in itself be recurring. It's the normal operation, and you have bond gain this quarter. I just want to make sure about that. Second, can you tell us about the rest of your amortized bond portfolio and whether you, at this point, have a gain or a loss in that portfolio? Finally, what do you expect for the currency by the end of the year? Thank you.

Hi, Carlos. How are you? For the first part of your question, the ARS 70 billion gain that we posted the quarter was not a repricing of the bond portfolio. It was a sale that we made on part of the bonds that are due in June 2027. The market price was above the accounting price, that is reflecting the ARS 70 billion. Also, we bought, with those pesos, longer duration and higher yield bonds that are due in September 2028, also tied to inflation. Sorry, second question. Can you repeat me that?

Yeah. The unrealized gain or loss in your, essentially, your held-to-maturity securities.

Unrealized gains?

Or loss.

No. Basically are more gains than losses. Honestly, I do not have that number here. I can give it to you later, even though we are not disclosing that as a public information. I try to get it, Carlos.

Thank you.

Third question was? Your third question?

It was the exchange rate. What do you expect for the currency by the end of the year? Thank you.

Basically, we work with two or three different local economies when looking at inflation or FX prices. I think that the consensus for the market is a devaluation of the currency that is below the inflation level. The ranges of a devaluation of the currency is between 20%-22% for the year, when inflation is between 27%-28%. A number that is ranging between 1,700-1,800 by the end of the year. That is what the consensus of the economy that we are working with have.

Very clear. Thank you so much.

Welcome.

Our next question comes from Pedro Offenhenden with Latin Securities.

Hello, Juan, Jorge, Nicolás. Good morning.

Good morning.

I wanted to ask on your loan growth guidance for the year, how should we think it, how the split between ARS and USD loans? If so far in the second quarter, you already are seeing some rebound, maybe, in any specific product, given the more stable funding rates in this quarter?

Hi, Pedro. How are you? Yeah. What we are seeing is in the second quarter, more recovery in dollar denominated loans than in ARS, even though both are positive. Going forward, we are seeing that in this year, dollar loan growth, in terms of the number, is going to outweigh a little bit the ARS, even though the bi-monetary portfolio is going to be about 42% nominal, as we were commenting as the guidance that we gave before.

Okay. Thank you, Jorge.

Welcome.

Our next question comes from Matias Cattaruzzi with AdCap.

Hi. Good afternoon, everyone. Hi, team. I have a quick follow-up on the loan growth guidance. The prior guidance that you gave us on the fourth quarter 2025 earnings call was 20% loan growth for the year, and now you told us 42% nominal. Having in mind 28% inflation, is it a lowering on the guidance?

Hi, Matias. No. The guidance that we gave last quarter was between 15 to 20 real, and now we are now speaking in terms of nominal, so it's pretty the same.

Okay. Great. Then a follow-up on regulation. Do you see room for further easing reserve requirements in coming months? How do you see the second part of the year for the banks? Will the growth in returns for the sector come with a lowering of NPLs, of provisions, and an increase in loans, or will it come also with a tailwind from regulatory environment?

In terms of regulations, I think that part of the increase in the reserve requirements were turned around by the last part of last year. Going forward, I think honestly, it's something that we do not know. It's an instrument that the Central Bank has in order to inject additional liquidity. Honestly, it's hard to say that we are going to see reductions in the reserve requirement scheme going forward. In terms of how we are seeing the rest of the year, it's what we have been talking in this conference call. What we are seeing is that the recovery in the economy that we are seeing, and also this is extrapolated on the increase in loan demand that we are seeing the second quarter. We expect at some point this to positively impact on the delinquency trend.

At some point, this is going to result in relatively lower provisions going forward. I think that the rest of the year might be, and of course, I want to highlight the might, be good for the industry.

Great. One last question about dollar-denominated mortgages. Do you have any comment on that? How's the business going? Is it going to be a stronger part of Banco Macro's business, the US dollar-denominated business with non-US dollar-producing clients?

That gray line is basically for ABC1 clients. It's dollar mortgages, five years. It is evolving, but the increase that we are seeing there is marginal. It's not impacting on the loan portfolio at all. The amounts are small, relatively speaking. They are evolving, but they are not making big difference in the evolution of the loan portfolio of the bank.

Great. Do you expect dollar loans to gain traction throughout the year besides mortgages?

Besides mortgages, yes, because what we are seeing is that sectors like energy, oil, gas, mining, agribusiness are very strong, and those are the ones that might be demanding US dollar loans. With what we are seeing in April and May is some recovery in loan demands in US dollars. Going forward, we expect this trend to continue.

Great. Thank you so much.

Welcome.

Our next question comes from Agustin Pacheco with Banco Mariva. Sir, you can ask your question.

Sir. Hi, can you hear me?

Yes.

Perfect. I would like to ask about deposit performance, which appears to have outpaced both broader system trends and peers, particularly in USD deposits. What were the main drivers behind this outperformance? As system-wide deposits continue to recover, do you expect Banco Macro to keep gaining share?

Hi, Agustin. The idea is that if we want to keep on growing in our loan portfolio and gaining market share going forward, of course, deposits are the main source of funds of the bank. Depending on domestic rates, depending on loan demands, the idea is to continue growing in deposits in both pesos and dollars going forward. This is not a straight upward line. It could have some ups and downs depending on market conditions and depending on the quarters. On a medium long-term basis, yes, the idea is to continue gaining share in deposits.

Perfect. Thanks.

Welcome.

Next question from Camila Azevedo with UBS.

Hi, everyone. Thank you for the space for questions. I have two from my side. First, on capital and dividends. You have close to ARS 4 trillion in excess capital with a coverage ratio near three times. Can you please update us on your capital allocation priorities? M&As, buybacks or additional dividends beyond what's already been approved. My second question would be on your recent acquisition of Banco Sáenz. It is still pending the Central Bank of Argentina approval. What is the expected timeline, and how do you plan to integrate it into the Personal Pay digital ecosystem operationally? Thanks a lot.

Thanks, Camila. Thank you, Camila. On your first question on capital, if you have been following Banco Macro trajectory, the bank has always had as a strategic strength keeping a strong capital position, both to manage the bank through the cycles and as we are doing now, and as you see now, keeping strong results and strong balance sheet despite a delinquency cycle that the system is digesting, but also to be ready to take opportunities of growth, both organic and inorganic. We remain positive for the outlook of Argentina and the possibility of Argentina materializing loan growth, which in terms of loans to GDP, still presents one of the most attractive opportunities in the region. We are still at a level of 11% loan to GDP. When you see peer countries in the region above 30%, 40%, 50% and up to 70%.

As we remain positive and optimistic on that opportunity, we want to keep a strong capital position to support growth. Also, we believe that there are and there will be, or there might be inorganic opportunities to invest. To be specific, we have done that with the Itaú acquisition a couple of years ago and more recently with investment in our complementary digital business, Personal Pay and Banco Sáenz, which we expect to succeed and demand capital going forward. This is despite or irrespective of additional possible opportunities that concentration in the system may present. As you know also, compared with the other countries in the region, the atomization of the system is still there. There's more concentration in other geographies. I think all in all, we are

Comfortable with this capital position because of, first, the optimism in the evolution of the economy and the system and the potential for organic growth, to support the recent inorganic investments that we've done, Personal Pay and Banco Sáenz, and also to be ready for additional potential opportunities that may arise if the concentration in the system continues. That's on capital. The other thing is, as you know, in terms of dividend payment, we have been constrained by the Central Bank regulation limiting dividend payments to 60% of the unassigned results for last year. That's another factor to consider. In terms of Personal Pay and Banco Sáenz, we have presented the filing for the Central Bank approval. We are transiting the process of approval as expected. I will not put specific timelines for the regulator.

The regulator has its procedures, its reviews, and these processes typically take some months. Our central scenario is that we will be ready to start operating the integrated business of the Personal Pay wallet, supported by this dedicated bank-as-a-service platform through Banco Sáenz, by the first quarter next year. This depends on obtaining Central Bank approval in the remainder of this year. That's our expectation, our central scenario. Again, it will totally depend on the regulator, and we don't want to impose any pressure or timelines to them. In the meantime, we are working in parallel, of course, without entering in any gun-jumping risks, in everything that we can do in parallel, so that when we get the Central Bank approval, we are as advanced as possible and up to speed as possible to integrate the businesses as fast as possible.

We are already working in the technological fronts, in the people fronts, in the risk management fronts, developing the capabilities that we need, so that when we have control of the bank, subject to Central Bank approval, we can integrate it as fast as possible.

That's clear. Thank you.

Welcome.

Next question from Brian Flores with Citi.

Hi, team, and thank you for the opportunity to make a follow-up here. Very quickly here, Jorge, I know, I think it was Carlos' question on the securities at amortized cost. We know this portfolio is still relevant, right? And you were opportunistic based on what you mentioned, the market price was higher than your carrying value. Just wondering if from a strategic perspective, we could expect that if market conditions improve, you could be opportunistic and seize these opportunities as they come along, right? What I'm trying to say is that this is not like a sacred part of the book. You could actually deploy or redeploy capital as you see fit, right? Just wanted to check if you have this flexibility, or rather you have a more fixed mandate in your head. Thank you.

Yes, Brian. We are always, as every bank in Argentina, is very on top of the market and trying to find opportunities. I think that what we are seeing is that if you want to get maybe higher returns, you have to go maybe longer duration. The idea is to continue looking at the market, and if there is another opportunity, we are going to go for it. Again, this is something that we cannot forecast, but because it's going to depend on market conditions, on market prices. We always try to get advantage of those conditions. I think that in past quarters or past years, we show that we are very accurate on managing the trend of the markets. The idea is to continue doing that.

Super clear. Thank you.

You're welcome, Brian.

There are no more questions at this time. This concludes the question and answer session. I will now turn over to Mr. Nicolás Torres for final considerations.

Thank you all for your interest in Banco Macro. We appreciate your time and look forward to speaking with you again. Have a good day.

This concludes today's presentation. You may now disconnect.

Good morning, ladies and gentlemen, and thank you for waiting. At this time, we would like to welcome everyone to Banco Macro's Fourth Quarter '25 Earnings Conference Call. We would like to inform you that the 4Q '25 press release is available to download at Investor Relations website of Banco Macro at www.macro.com.ar/relaciones-inversores. [Operator Instructions] Also, this event is being recorded. [Operator Instructions] It's now my pleasure to introduce our speakers. Joining us from Argentina are Mr. Juan Parma, Chief Executive Officer; Mr. Jorge Scarinci, Chief Financial Officer; and Mr. Nicolas Torres, Investor Relations. Now I'll turn the conference over to Mr. Nicolas Torres. You may begin your conference, sir.

Thank you, and good morning. Good morning, and welcome to Banco Macro's Fourth Quarter 2025 Conference Call. Any comments we may make today may include forward-looking statements, which are subject to various conditions, and these are outlined in our 20-F, which was filed to the SEC and is available on our website. Fourth quarter 2025 press release was distributed yesterday and it's available on our website. All figures are in Argentina pesos and have been restated in terms of the units referring at the end of the reporting period. As of 2020, the bank began reporting results applying hyperinflation accounting in accordance with IFRS IAS 29 as established by the Central Bank. For recent comparison, figures of previous quarters have been restated behind IAS 29 to reflect the accumulated effect of inflation adjustment for each period through December 31, 2025. I will now briefly comment on Banco's fourth quarter 2025 financial results. In the fourth quarter 2025 Banco Macro's net income totaled ARS 100 billion, ARS 290.7 billion in fiscal year 2025 recurring from the loss posted in the previous quarter. The result was 26% or ARS 34.4 billion lower than the result posted in the fourth quarter of 2024. In the fourth quarter of 2025, the accumulated annualized return on average equity and accumulated annualized return on our assets were 5.1% and 1.4%, respectively. Excluding ARS 82.9 billion of nonrecurring expenses in the fourth quarter of 2025, net income would have totaled ARS 183 billion and ARS 393.7 billion in fiscal year 2025. And accumulated ROE and ROA would have been 6.6% and 1.8% respectively. In fiscal year 2025, net income totaled to ARS 290.7 billion, 32% lower than in fiscal year 2024. Total comprehensive income totaled ARS 303 billion and was 1% higher than the fiscal year 2024. In the fourth quarter of 2025, ARS 82.9 billion restructuring expenses were recorded related to our retirement plans and provisions for severance statements. Excluding nonrecurring expenses fourth quarter '25 net income would have been ARS 183 billion and fiscal year 2025 net income would have totaled ARS 393.7 billion, excluding the third quarter and fourth quarter 2025 nonrecurring expenses. Representing an accumulated ROE on our rate of 6.6% and 1.8% respectively. In the fourth quarter of 2025, operating income before general, administrative and personnel expenses, total of ARS 1.17 trillion, 39% or ARS 324.2 billion higher than in the third quarter of 2025 and 9% from ARS 94.4 billion higher than in the same period of last year. Fiscal year 2025, net operating income before general, administrative and personnel expenses totaled ARS 4.1 trillion, 33% lower than fiscal year 2024. In the fourth quarter of 2025, provision for loan losses totaled ARS 169.3 million, 1% from ARS 1.8 million lower than in the third quarter of 2025. On a yearly basis, provision for loan loses increased 243% or ARS 120 million. In Fiscal year 2025, provision for loan loses totaled ARS 538.1 million and were 274% higher than fiscal year 2024. In the quarter, net interest income totaled ARS 836.5 billion, 13% or ARS 96.4 billion higher than the third quarter of 2025 and 19% or ARS 135.9 billion higher year-on-year. This result is giving a 7% increase in interest income and a 1% decrease in interest expense. In fiscal year 2025, net interest income totaled ARS 3.1 trillion and was 44% higher than fiscal year 2024. Interest income of 8% while interest expense decreased 23%. In the fourth quarter of 2025, interest income totaled ARS 1.4 billion and 7% from ARS 91.6 billion higher than third quarter 2025 up 30% or ARS 324.1 billion higher than the fourth quarter of 2024. In fiscal year 2025, interest income totaled ARS 5 trillion, 8% higher than fiscal year 2024. Income from interest on loans and other financing totaled ARS 1.44 trillion, 3% or ARS 33.5 billion higher compared with the previous quarter, mainly due to a 141 basis points increase in the average lending rate, while the average volume of private sector loans remained almost unchanged. On a yearly basis, income from interest on loans increased 58%, were ARS 379.3 billion and in fiscal year 2025, income in interest on loans and other finance will total ARS 3.61 trillion, 13% higher than the fiscal year 2024. In the fourth quarter of 2024, interest on loans represent 74% of the total interest income. In the fourth quarter of 2025, income from government and private securities stood at 105% to ARS 306 million quarter-on-quarter and decreased 1% or ARS 6.2 million compared with the same period of last year. Fiscal year 2025, income from the government of private securities totaled ARS 176 trillion, 58% lower than fiscal year 2024. The fourth quarter of 2025 in terms of FX, the bank's strategy to remain short in U.S. dollar during the second half of 2025 proven successful. The combination of the short dollar position together with the [indiscernible] position and the allocation of the pesos generated by the sale of U.S. dollars resulted in a net gain of ARS 26.3 billion. In the fourth quarter of 2025, interest expense totaled ARS 565.1 billion, decreasing 1% or ARS 4.8 billion compared to the previous quarter and 50% higher compared to the fourth quarter of 2024. In fiscal year 2025, interest expense totaled ARS 193 trillion, 23% lower than fiscal year 2024. Within interest expenses, interest on [indiscernible] quarter-on-quarter due to 168 basis points decrease in the average rate paid on [indiscernible] the average volume of private sector deposit increase 7%. On a yearly basis, interest on deposits increased 48% or ARS 107.6 million. In the fourth quarter of 2025, the [indiscernible] net interest margin, including FX, was 21.7% higher than the 18% posted in the third quarter of 2025 and lower than 24.7% posted in the fourth quarter 2024. In the fourth quarter of 2025, [indiscernible] net income totaled ARS 192.4 billion versus 1% or ARS 1.2 billion higher than in the third quarter of 2025 and was 8% or ARS 89 billion higher than the same period last year. Fiscal year 2025, net income totaled ARS 767.4 million, which was 20% higher than fiscal year 2024. In the quarter, other operating income totaled ARS 72.3 billion 3% or 2.1% lower than in the third quarter of 2025 due to lower other income and lower service-related fees, which were partially offset by higher income from each [indiscernible] and on a yearly basis, our operating income increased 30% or [indiscernible]. In fiscal year 2025, our operating income totaled ARS 292.1 billion, a change from fiscal year 2024. In the fourth quarter of 2025, Banco Macro's administrative expenses plus employee benefits totaled ARS 412.4 billion, 15% or ARS 54.8 billion higher than the previous quarter, due to higher employee benefits, which increased 18%, and higher administrative expenses, which increased 8%. On a yearly basis, administrative expenses plus employee benefits increased 20% or ARS 68 billion. In fiscal year 2025 administrative expenses plus employee benefits were unchanged compared to fiscal year 2024. Employee benefits increased 18% or ARS 45.8 billion quarter-on-quarter. Compensation and bonuses increased 156% or ARS 68.7 billion. In fourth quarter of 2025, the bank recorded ARS 82.9 billion restructuring expenses related to early retirement plans and severance payment provisions. Excluding restructuring expenses, employee benefits would have decreased 8% or ARS 17.1 billion. On a yearly basis, employee benefits increased (sic) [ decreased ] 30% or ARS 67.5 billion, and excluding restructuring expenses, employee benefits would have been 7% or ARS 15.4 billion lower. In fiscal year 2025, employee benefits associated with personnel involved in restructuring expenses totaled ARS 49 billion. In the fourth quarter of 2025, efficiency ratio reached 38.7%, improving from the 46.5% posted in third quarter of 2025 and the 39.4% posted one year ago. In fourth quarter of 2025, expenses increased 13%, while net interest income plus net fee income plus other operating income increased 36% compared to the third quarter of 2025. It is worth mentioning that during fiscal year 2025 Banco Macro reduced its branch network by 75 branches down to 444 branches from 519 branches in December 2024 and reduced its headcount by 514 employees. All this was achieved while gaining market share, both in private sector loans and private sector deposits. In the fourth quarter of 2025, the result from the net monetary position totaled ARS 277 billion loss, 27% or ARS 58.6 billion higher than the loss posted in third quarter of 2025 and 5% or ARS 13.2 billion lower than the loss posted one year ago. Higher inflation was observed during the quarter, 189 basis points above third quarter of 2025. Inflation was 7.86% compared to 5.97% in the third quarter of 2025. In fiscal year 2025 the result from the net monetary position totaled ARS 1.05 trillion loss, 66% lower than the one posted in fiscal year 2024. Inflation in 2025 reached 31.5% compared to the 117.8% registered in 2024. In fourth quarter of 2025, Banco Macro's effective income tax rate was 42.7%. In fiscal year 2025 the effective tax rate was 43.1%, higher than the 9.2% registered in fiscal year 2024. Further information is provided in Note 24 of our Financial Statements. In terms of loan growth, the bank's total financing reached ARS 10.71 trillion, decreasing 2% or ARS 211 billion quarter-on-quarter and increasing 40% or ARS 3.1 trillion year-on-year. In the fourth quarter of 2025, peso financing increased 2% or ARS 196.4 billion, while US dollar financing decreased 20% or $407 million. In fiscal year 2025 both peso financing and U.S. dollar financing increased 36% and 12% respectively. It is important to mention that Banco Macro's market share over private sector loans as of December 2025 was 8.3% (sic) [ 8.6% ], increasing 30 basis points compared to December 2024. On the funding side, total deposits increased 8% or ARS 958.1 billion quarter-on-quarter totaling ARS 13.7 trillion and increased 24% or ARS 2.6 trillion year-on-year. Private sector deposits increased 11% or ARS 1.26 trillion quarter-on-quarter while public sector deposits decreased 33% or ARS 310.4 billion quarter-on-quarter. In increase in private sector deposits were offset by time deposits which increased 17% or ARS 978.5 billion while demand deposits increased 5% or ARS 308.1 billion quarter-on-quarter. In the quarter, peso deposits increased 3% or ARS 234.9 billion, while US dollar deposits increased 10% or $300 million. On a yearly basis, peso deposits increased 18%, while dollar deposits decreased 4%. As of December 2025, Banco Macro's transactional accounts represented approximately 47% of total deposits. Banco Macro's market share over private sector deposits as of December 2025 totaled 7.9%, 90 basis points higher than December 2024. In terms of asset quality, Banco Macro's non-performing to total financing ratio reached 3.87%. The coverage ratio, measured as total allowances under expected credit losses over non performing loans under central bank rules, reached 119.86%. Commercial portfolio non-performing loans improved 17 basis points down to 0.68% from 0.85% in the previous quarter while consumer portfolio non-performing loans deteriorated 93 basis points in the fourth quarter of 2025 up to 5.23% from 4.3% in the third quarter of 2025. In terms of capitalization, Banco Macro accounted an excess capital of ARS 3.6 trillion, which represented a capital adequacy ratio of 30.6% and Tier 1 ratio of 30.6%. The bank's aim is to make the best use of this excess capital. The bank's liquidity remained more than appropriate. Liquid assets to total deposits ratio reached 73%. Overall, we have accounted for another positive quarter. We continue to show a solid financial position. Asset quality remain under control and closely monitored. We keep on working to improve more our efficiency standards and we keep a well optimized deposit base. At this time, we would like to take the questions you may have.

[Operator Instructions] Our first question comes from Brian Flores from Citi.

I have a first question here on your guidance. I just wanted to know if there is an update on the soft guidance you provided in the last months after the election. I think it was 35% in real terms for loans, 25% in deposits and low teens in ROE. So I just wanted to check if any of these variables in your view has changed. I know it's a very fluid environment in Argentina. So just checking on that. And then a second question just very quick. We saw strong security gains recovering from public securities. So I just wanted to understand how in your view would this be considered? Or how much would be considered recurring in nature and how much stemming from the volatility that we had in the election cycle?

Brian, this is Jorge Scarinci. Yes, on your first question, yes, we are going to maybe modify a little bit our guidance basically according to local consensus of economists are reducing a little bit the real GDP growth for 2026 to levels of between 2.8% to 3%. And also in addition to that, there is also the consensus is estimating a higher inflation for '26 compared to the one that we were working with in the last quarter of last year that was 20%, and now the new update is 27%. So due to those -- I mean, modifications on those 2 macroeconomic variables, we are also fine-tuning our guidance for growth for 2026. In terms of loans, we're expecting 20% real growth in the calendar year of '26 and deposit growth of 6% in real terms. Also, as you could see in this press release, we are -- we have started to report a kind of reported ROE and ROA and also an adjusted ROE and ROA due to the restructuring charges that we posted in the fourth quarter and we expect some other of this type to come between first and second quarter of '26. So in terms of, I would say, adjusted ROE for '26, we are working with a level of 8% area, basically in terms of ROE and in terms of ROA close to 1.8% to 2% area, right? So that is answering your first question in terms of guidance. In terms of your second question, in terms of the security gains, I would say that one of the main drivers for the weak quarter that we posted in -- as of September was a bad performance of the bond portfolio related to the increased volatility in the macroeconomic variables due to the election that -- or the midterm election that took place the 27th of October. And what we saw in the fourth quarter was a reversal of trend, some declining nominal and real interest rates and some rebound in the local peso securities that we hold in our portfolio. So I would attribute most of this to the repricing that we saw in the fourth quarter as a kind of an opposite effect compared to the one that we saw in the third quarter of last year.

No, super clear. Just a quick follow-up on maybe the gap between loans and deposits, right? Because it used to be, I would say, narrower. Now it's widening. So I just wanted to understand, you are seeing basically a change in maybe the savings capacity of people, if you think maybe this, as you mentioned, this lower or slower GDP is translating into this change in behavior? Or any color you could give as to why deposits are at this expectation that is maybe significantly lower than the previous base case?

Well, first, we continue to hold almost 24% of total assets in terms of securities that could be used in case of that we need to finance the gap between the increasing loans and deposits. Even though that we continue to have a loan-to-deposit ratio, of course, below 100%. So even though in relative terms, we are growing or we are expecting to grow more in loans and deposits, but in absolute terms, the difference is not going to be the much. And besides of that, we are forecasting that, for the moment, real interest rates to be slightly positive, and that's why we are not forecasting a big increase in terms of deposits in 2026.

Our next question comes from Lindsey Shema from Goldman Sachs.

First off, I mean, we saw some continued deterioration in consumer asset quality and also seems like the macro scenario is still a bit tougher, but that there was some incremental improvement in cost of risk. So maybe just how are the early indicators looking for asset quality? And what makes you feel a little bit more constructive on cost of risk going forward? Or do you see that kind of deterioration coming back? And then for my second question, on the political landscape, it seems like labor reform is on track to be enacted. The vote is tomorrow. What do you think is next on the administration's agenda? And what do you as a bank really need to see to give you greater certainty going forward?

Lindsey, in terms of your first question, what we are seeing is that the speed of the deterioration of the consumer portfolio has been reduced. As you could see in terms of cost of risk, we posted slightly below levels of the one that we posted in the third quarter. In the first quarter, we are seeing kind of, for the moment, neutral news. I would say that it's kind of relatively stable in terms of the figures that we are seeing at least as of January compared to December. However, going forward, we expect to have maybe more positive news by the end of the first and second quarter of this year. That's why we are forecasting for 2026 a cost of risk of 5.2%. This is slightly below the 5.6% that we posted in the calendar year of '25. In terms of...

Maybe Jorge, if I may add to that, this is Juan Parma. We took early action during 2025 by constraining loan origination back from April last year. What we are seeing is that in terms of new vintages and new origination, the performance of the vintages is better than the portfolio as a whole and back to the levels we used to see in 2024. So that recomposition of the portfolio with better new origination is what is actually driving the stabilization and positive outlook in terms of cost of credit. Basically, it's what we are seeing in the new originations that we tightened up since around April, May last year.

And Lindsey, in terms of your second question, I would say that in the last 3, 4 months, the government, I would say that is leading the agenda, managing all the political issues going on, like introducing the labor reform at the end of '25 and that was approved by the Congress in January by deputies in general and in February, deputies in particular, and also expected to have the Senate to approve it. Also, we expect our tax reform to come at some point in the next month or so. I would say that next Sunday, that is going to be the 1st of March, President Milei is going to open the ordinary session of the Congress and he is going to, in our view, give a speech on the coming reforms or projects to be sent to the Congress. So I think that we have to be clear-eyed for his speech next Sunday in order to have a more, I would say, better landscape of what's going to be on the agenda of the government in 2026.

But I would say, adding to Jorge, that what we have seen after last year, a very positive outcome in terms of the midterm elections is the government using its political capital and its majority in Congress to push on their strategy to keep a tight monetary policy and a tight FX policy, focusing on reducing inflation while maintaining fiscal surplus and solving for the competitiveness of the economy by deregulation. So that's their strategy. They will try to improve the competitiveness of the economy by reducing the Argentina cost, right, both in fiscal terms with the tax reform, labor costs with the labor reform using their renewed political capital after the midterm elections. The recent approval that needs to be finally validated by Congress this Friday on the labor reform is a demonstration of that. And as Jorge was mentioning, we expect President Milei in his opening speech of the Congress session for this year to outline what is his agenda in terms of pushing reforms using this political capital through the year, and we expect that to continue. There is one comment that, I think, is relevant for the banking industry in the labor reform, by the way, which is that as part of the labor law, there was a relevant article that defined whether if banks or fintech wallets are the ones to pay salaries. And it was a positive outcome for the banking industry because the law confirmed that the only way to pay salaries or pension payments in Argentina is only through bank accounts, not through wallets or digital accounts. So that's a good outcome for the bank and for the industry as a whole.

Our next question comes from Yuri Fernandes from JPMorgan.

Congrats on the profitability recovery in the quarter. I would like to understand a little bit just the mark-to-market on the securities, like the trading gains. Like this line is always volatile, right? And it's hard to predict but if you can help us understand how to better think this line, how to better model and what drove like the -- probably the sovereign bond in Argentina, but I would like to understand also what drove the gains during this quarter. And then I can ask a second quarter regarding deposits. I guess I heard well, the 6% real growth. It sounds a little bit low, right? I think expectations for the industry was that deposits would still grow, I don't know, 20%, 25% in real terms. So my question is how to grow loans, right, with such a low potential growth of deposits? If you are seeing any change in reserve requirements. So just trying to understand a little bit like the message on liabilities.

I will start by your second question. Yes. Basically, I mean, I think I answered before, why we're expecting a 6% real growth in deposits on the fine-tuning of macroeconomic variables and also on slightly narrower positive real interest rate expected for '26. Even though that, we are expecting to grow loans by 20% in real terms. This is slightly below what we grew our loan book in '25. '25 was a great year, 40% in real term was a great year. And again, we have, as I mentioned before, this securities portfolio that in the case that loans are growing above what we are expecting can be used to finance the gap if deposits are growing at 6% and not growing more than that. In terms of your first question, it is not very easy to answer. I would say that because we have a combination of, I would say, 68% of our bonds that are tied to inflation and another 32% which are tied to variable rates. I would say that the best way to model this is what you are expecting for domestic prices or I mean, for inflation or the wholesale rate going forward. So that is going to be maintained. You are going to see a kind of [indiscernible] and steady income on a quarterly basis on our bond portfolio. However, if you are expecting some volatility there, on ups and downs that is going to affect the pace of the bond gains on a quarterly basis.

Our next question comes from Pedro Leduc from Itau BBA.

We see NIMs recovering almost halfway here. At the same time, we're seeing still some credit quality pressures. Question to you is when we think about risk-adjusted NIMs for 2026, I know the average for 2025 is a bit weird to look at. But if you could help us understand a bit if the fourth quarter is a good starting point for us to build upon for risk-adjusted NIMs and what the drivers are for us to look at this line in 2025 -- '26?

I would say just as a starting point, the fourth quarter is kind of a reasonable measure. Going forward, we're expecting a little bit of pressure on rates, maybe on margins a little bit. So we finished '25 with a net interest margin on the area slightly above 20% and 21.5% approx. We're seeing this maybe in the level of 20% for '26. And as an opposite effect, we are seeing slightly below cost of risk in '26 compared to '25. So as overall, I would say that slight compression on the NIM adjusted by credit quality in '26.

Versus the average of '25, no, but from the starting point.

Yes, from the starting point, yes.

Our next question comes from Pedro Offenhenden from Latin Securities.

I wanted to ask on -- you mentioned additional personnel expenses in the following quarters. Could you help us to frame this remaining impact as how much of the total restructuring costs were already recognized this quarter?

So maybe you can talk, Jorge, about the restructuring costs we booked in '25 and how much of that is still to benefit '26 and we can talk about what to expect going forward. Maybe I can take it both of it. From the ARS 82 billion that we booked in '25 concentrated in the fourth quarter, there are still ARS 36 billion of that, that will help personnel exits that will benefit '26. In terms of additional restructuring costs, you should expect similar numbers for the following quarters. But you should note that the condition for us to report an expense as a restructuring cost is one that will take out operational expenses on a permanent basis. So the likes of reduction in personnel that won't be replaced. That's what we define by restructuring costs. That's why in the following quarters, you should expect us to continue reporting with the same type of language being consistent to the point that restructuring cost is cost to take us out cost on a permanent basis. And in that sense, reporting or talking about reported and adjusted results and reported and adjusted ROEs, but we expect to continue in the following quarters with this action, which we believe is positive because it will end the year with a lower recurrent cost base for the company. And back to the previous point, compensating the margin compression that Jorge was talking about. That's why we are doing as inflation goes down, rates go down, margins compress, we are reacting on the cost side to compensate this effect.

Our next question comes from Carlos Gomez-Lopez, HSBC.

First, to confirm what you said earlier, which is that adjusting for the restructuring charges, you think that something like an 8% ROE for the year is realistic. Second, I would like to know if you have any update on your exciting acquisition of Personal Pay? Any update you can give us versus the call that you had 2 or 3 weeks ago? And finally, when you look at loan growth, I mean it has been coming down and down and down. And I mean, you are already giving us the expectation that it will be 20%, but actually 20% is an improvement from where we are today, when do you see the trend breaking and starting to see some more activity in the system? .

Thanks, Carlos. On the first question, yes, we think that including all these restructuring charges and all the guidance in terms of growth in both loan deposits et cetera, we are expecting to deliver an adjusted ROE in the area of 8% in '26. I'm going to the third question. I mean, our main business is to lend money. And of course, we would like to lend as much money as we can, of course, considering credit risk and all that. But of course, what we are not seeing for the moment is the economy growing at very high rates. So the guidance that we are giving is like between maintaining share and gaining a little bit of basis points in share. We are not reducing our share in terms of loans. And you can see in the quarter that we reported that we are growing the shares in both loans and deposits. So the idea is to continue in that path going forward. But of course, we need the macro economy of Argentina to push harder in order to see a high level of loan growth. In terms of Personal Pay...

I can comment on that, Jorge, thank you. Yes. We announced the acquisition of 50% of Personal Pay, which is Telecom's wallet. This was a cash-in transaction. So all our equity investment went into the company to develop the company. This will be built as a bank-as-a-service business where we will, on one hand, work on engaging the around 30 million customers that Telecom have to use the wallet and then do financial intermediation with a bank-as-a-service model. As I think have explained when we talked about this with some of you in the specific call we had on Personal Pay about 3 weeks or 4 weeks ago, we have the option to do this through Banco Macro or do this through an existing or a new subsidiary of Banco Macro so we are considering those options while we build the technology and the services to connect the wallet with the bank as a service. So more to come on this front, and we will update you accordingly once we know how exactly this bank as a service model will be built.

Our next question comes from [indiscernible].

I wanted to ask regarding the restructration, if you have any target for headcount and for a number of branches by the end of 2026 and which is the impact in ROE because of these restructuration charges?

I would say that in terms of both headcount and branches, we're expecting a reduction in both similar levels than the one that we saw in '25 just to give you some guidance there. And I would say that approx the impact on ROE in terms of these restructuring charges are approximately 3 percentage points. That is what we are calculating on '26 on the impact on restructuring charges on ROE.

Okay. So just to check, reported ROE will be around 5%, then right?

Approximately in the area of 5% and they adjust it in the area of 8%.

Our next question comes from Matias Cattaruzzi from Adcap.

I wanted to ask you a question about the recent rise in dollar liquidity in the system. As it improved, how are you thinking about the possibility of gradually expanding USD lending beyond traditional dollar generating clients? Under what conditions would Macro feel comfortable lending dollars to nondollar earners, if at all?

So I will answer from the bank's perspective. Then there is the question, which is around the enablement of this, which is a question around regulation. So as I listen to your question, I understand you're well-versed on how the regulation is today. So let me start by that in the benefit of others that may be not that familiar with it in case that's the case. Today, in Argentina, you can only lend dollar from depositors to clients that have their revenue streams in dollars. So basically, exporters. So that limits your ability to deploy dollar deposits to only those type of customers. With your own dollars, not the dollars from depositors, but the dollars from the bank, you can lend to anyone. The reality is that if you take the total deposits in the system denominated in dollars, they move from being 1/4 of total deposits measured all in dollars, 25% to now 37%. So there is an advancement of dollar-denominated deposits in the total deposits of the banking system as a whole. With this limitation, eventually, this creates a bottleneck because you cannot deploy those reports. So the government is exploring alternatives to evolve from that situation. If that was the case, and I cannot say when and if this will happen because this depends on a change on regulation, and I cannot speak to that. We are prepared to lend because it will be -- if the regulation changes, then it will be up to each bank to define the appetite to use that space and lend their dollar capacity. We are bullish on that. We believe that we can work with high-quality customers, both on the commercial segment and on the individual segment to deploy that lending -- that dollar lending capacity. So we believe that if that regulation evolves allowing this to happen, this will turn into something positive for the bank because we are in the bullish side of the market regarding that. But we depend on the regulation to change or to evolve to take advantage of that opportunity.

Our next question comes from Ernesto Gabilondo from Bank of America.

Congrats on your results. Very close to a recurring ROE of 7% in 2025, if excluding the restructuring costs. My first question is a follow-up on the 2026 guidance. Any color on NPLs? Can you confirm you have reached the NPL peaks? And when do you see them trending down in 2026? Any color in terms of fee income growth and also in recurring OpEx growth, so removing the restructuring costs, how do you see recurring OpEx growth? And also, when do you see the ROE returning again to high teens? Can you walk us through over the next years? And my second question is on your loan growth expectations. We have seen a lot of investments announced in Argentina. So in your case, which would be the sectors that you are financing or that you are seeking to finance leveraging on these announcements? And especially you have a very strong capital base, so maybe you have the opportunity to finance projects with longer duration when compared to your peers. And the last question is in your capital ratio. How do you see your capital allocation this year in terms of buybacks, dividends or potential M&A activity?

I will try to answer all your questions. In terms of asset quality going forward in the same trend that we are seeing the cost of risk lower in terms of the level that we posted in average in '25. We're expecting also NPLs to go in the area of between mid to low 3s. That is in accordance with the 5.2% cost of risk that we are expecting for '26 compared to the 5.6% that we saw in '25. Basically, in terms of loan growth that you are on to asking, I would say that, yes, there are some investments that have been announced in Argentina in different sectors, mostly in energy, mining. Some of those investments are going to be done this year. Others are going to be done in '27, '28, et cetera. Of course, and it is also related to the other question that you asked, we have the best capital base in Argentina. And of course, we are expecting and prepared to finance those projects this year and following years. Of course, it is pretty sure that the bank wants to make the best use of this excess capital. And we have been trying to grow as much as we can in the past -- than we could in the past and going forward also in terms of dividend policy last year and also this year, we have a 100% payout ratio in terms of current dividend, that is this year is what the board is going to propose to the shareholders' meeting. And of course, we have to wait for the Central Bank to see if that dividend is going to be paid in 1 installment, 3, 6 or whatever. But again, we are working in order to clean down this excess capital going forward with the combination of organic, inorganic growth, cash dividend and if it is the case, on buyback programs, such as the one that we posted or put in place in the past. So it is pretty sure that we are very well prepared and positioned to take advantage of any positive news, both in the macroeconomic scenario and also within the financial sector in '26 and onwards. In terms of when we are going to be seeing mid-teens in terms of ROE, one thing to take into consideration is that maybe in 2028, Argentina would be entering to, again, I would say, nominal reporting because of '25, '26 '27, Argentina in the 3 years in a row we are having less than 100% inflation, we are going back to noninflation adjusting reporting. So we should be reporting nominal numbers and, of course, ROE since '28 onwards. So I think that's between '28 and '30, I think that is going to be the year where we are going to see macro delivery mid-teens ROEs and maybe something above that.

And I would add to Jorge's comments that by the end of 2027, our restructuring program will enter in full effect in terms of being able to capture the benefits of the restructuring. So the restructuring costs that we talked about will continue mostly to '26, part in '27. So by the end of '27, entering into full effect in '28, we will be able to capture and harvest the full benefits of the restructuring program, okay? If you read into our press release and results announcement, you will see that the ARS 82 billion of restructuring costs are related with costs that in '25 were ARS 49 billion. So we cannot talk here about future savings of these actions, but you can read into that. So if we continue with this, you can also read into how much that full effect of restructuring costs could mean in '28. Coupled with what Jorge mentioned about the stopping if Argentina continues in the inflation reducing trend, moving from real ROEs to nominal ROEs in '28. So by then, I'm pretty confident that we will be able to reach the mid-teen ROEs going forward. You answered -- Jorge mentioned back to the question on financing projects, longer tenors and so forth. Jorge mentioned about the capital strength of the bank. I would also add the liquidity strength and funding strength from the bank because after the successful placing of negatiated obligations that we did last month, we have also extended our funding capacity to support such projects for -- in a range of -- for 3 to 4 years. So we expect that. The other reality is that companies in Argentina have been benefiting from the access to capital markets and issuing a substantial amount and a record amount, I would say, of U.S. dollar-denominated debt. But we expect that after that cycle, then private lending -- the private lending market will turn on, particularly if rates in the U.S. at some point go up, we expect this to be an opportunity for that. So we are keeping that liquidity remaining ready to support the energy sector, the mining sector, the infrastructure sector of Argentina that at some point will start to get traction, we believe.

This is super helpful. Just a follow-up in terms of the NPL. So just to confirm, the NPL already peaked in the fourth quarter and you're expecting, for example, NPL to go to low to mid 3% and cost of risk to 5.2%. But how should we think about the timing throughout 2026? Is this something that will start to go down in the first quarter? Or is this something that will go down more in the second half of this year? So just a little bit of color on that.

Yes. I think that we might see numbers more on the positive in the second half of '26, some stable numbers in the first half of '26.

Our next question comes from Kaio Prato from UBS.

I have a quick on my side, please. Just to follow up on loans. If you are already seeing any pickup in loans sequentially because it has been weak on a quarter-over-quarter basis or if this is expected to accelerate more towards the second half? And second is still on loans. You mentioned about this reduction in overall growth expectations and talked about GDP. But is there any segment that you are seeing specifically slow down? Or if this is mostly related to our appetite on consumers? So just some breakdown between both would be good as well.

We continue to see more service sectors as I mentioned before, energy and within energy, oil, gas and then you have mining, agribusiness sector. Those are the most active. The ones that are lagging a little bit are, I would say, construction, could be infrastructure for the moment, even though prospects for '26 of infrastructure are positive. Maybe massive consuming sectors are also not having a good performance. We expect these sectors as I commented to be the other leaders or the worst performance in '26.

I would also add that there is a bit of a binary situation in terms of credit quality and risk in an economy which is opening, although deregulation at some point will come and help by reducing the Argentina cost. It is clear that there will be winning sectors and losing sectors. Probably on the winning side, is all the sectors around mining, energy, agriculture, also services, to some extent, commerce retail if economy starts to pick up. The manufacturing sector is the one that is under the spotlight now, and we are seeing some specific manufacturing sectors like the textile sector, the clothing sector, like the automotive sector suffering because of the opening of the economy. So another lens to look at is not only where we -- how much we grow, in average, but be selective given this significant change in the structure of the micro economy by sector in Argentina.

Yes. Okay. But in terms of the loan, it's clear. But in terms of the loan growth, it's already improving sequentially? Or should we expect more of this growth towards the second half of the 2026?

I think well, always the first quarter is the seasonally lowest. So I think that it's going to be in a gradual increase trend towards the end of '26.

[Operator Instructions] There are no more questions at this time. This does conclude the Q&A section. I will now turn it over to Mr. Nicolas Torres for any final remarks.

Thank you all for your interest in Banco Macro. We appreciate your time and look forward to speaking with you again. Have a good day.

Banco Macro's Fourth Quarter '25 Conference Call is now closed. You can disconnect now on, and have a wonderful day.