Banco Macro S.A.

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 slash Relaciones Dash 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 will 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 Iscarincini, Anti-Financial Officer, and Mr. Nicolas Torres, IR. Now I will turn the conference over to Mr. Nicolas 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 forwarded statements which are subject to various conditions, and these are outlined in our point yet, which was filed in the SEC, and is available on our website. First Quarter 2026 press release was distributed yesterday, and is available on our website. All deals are in urgent and precious, and have been distributed in terms of the measure in Munich at the end of the reporting period. As of 2020, the Bank began reporting results applying high-grade inflation accounting in accordance with IFRS IAS 29, as established by the Central Bank. For ease of comparison, figures of previous quarters have been restating applying IAS 29 to reflect the accumulated effect of the inflation adjustment for each period from March 31, 2026. I will now briefly comment on the Bank's first quarter of 2026 financial results. From the average net income total of $139.8 billion in the first quarter of 2026, 28% for 30.2 billion pesos higher than the result posted in the previous quarter, and 131% for 39.2 billion pesos 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 the supplementary expenses, 12.9 billion pesos after tax, The first quarter of 2026 net income would have totaled 152.9 billion pesos, and the analyzed ROE and ROAs would have been 10.9 and 6.6% respectively. In the first quarter of 2026, operating income before general and administrative personal expenses totaled 123 trillion pesos, 3% of 43.6 billion pesos lower than the fourth quarter of 2025, and 16% of 169.2 billion pesos higher than the same period of last year. In the first quarter of 2026, operating income after general and personal expenses was 569.8 billion pesos, and 15% percent 3.8 billion pesos higher than in the fourth quarter of 2025, and 24% for 108.6 billion pesos higher than a year ago. The bank's first quarter of 2026 net interest income totaled 975.2 billion pesos, 7% for 59.7 billion pesos higher than in the fourth quarter of 2025, and 27% or $207.2 million versus higher year-on-year. Futures hold is due to a 5% decrease in interest income and a 21% decrease in interest expense. In the fourth quarter of 2026, interest amounts represent 72% of total interest income. In the first quarter of 2026, the band's strategy to remain short in the US dollar proved successful. The combination of the short power position together with the amount interest position and the allocation of the pesos generated by the sale of U.S. lenders resulted in an NPA. The advance first quarter 2026 interest expense totaled 485.7 billion pesos, decreasing 21% or 152.7 billion pesos compared to the previous quarter, and 27% or 104 billion pesos got higher compared to the first quarter of 2025. In the first quarter of 2026, interest and cost produced 90% of the advance total interest expense, decreasing 22% or 129.1 billion pesos per quarter, due to a 407.1% decrease in the average rate paid on buses, when the average rate paid on buses increased 1%. On a yearly basis, interest on buses increased 24% or 87.1 billion pesos. In the first quarter of 2020, the bank's net interest margin, including FFs, was 25.3%, higher than the 21.7% posted in the fourth quarter of 2020, and than the 23.2% posted in the first quarter of 2020. In the first quarter of 2026, bank matters admitted expenses plus employee benefits totaled $349.8 billion pesos, 22% or $101.5 billion, which is lower than the previous quarter. Each lower employee benefits, which decreased 28%, and lower admitted expenses, which decreased 9%. On a year of wages, admitted expenses plus employee benefits increased 3% or $90.8. Employee benefits decreased 28% or $89.6 billion pesos quarter-on-quarter. Compensation and bonuses decreased 61% or 74.8 billion pesos. In the first quarter of 2006, the bank recorded 19.9 billion pesos restructuring expenses related to early retirement funds and certain payment positions. On a yearly basis, employee earnings increased 3% or 6 billion pesos, and excluding the restructuring expenses, employee benefits would have decreased 8% or 18.7 billion pesos quarter-on-quarter and 6% or 13.9 billion pesos year-on-year. It is worth mentioning That, in the first quarter of 2026, has not 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 market position totaled 349.8 million pesos lost, 15% of 46 billion pesos higher than the loss posted in the fourth quarter of 2020, and 1% of 4.4 billion pesos lower than the loss posted one year ago. Higher inflation was observed in the quarter, 158 basis points above the fourth quarter of 2025. The 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, mathematics' expected income tax rate was 34.3%. In the first quarter of 2025 to 2026, mathematics totaled a financial decrease of 9% or 1.1 trillion pesos, quarter to quarter, total 10.63 trillion pesos and increased 5% of 458.9 million pesos year-on-year. In the first quarter of 2026, peso financing decreased 9% while US dollar financing decreased 6%. It is important to mention that Bancomat's market share over private sector loans as of March 2026 reached 8.2%, decreasing 40 base points compared to December 2025. On the funding side, Bank of Madro's total deposit decreased 7% from 993.7 million pesos per quarter, and increased 10% from 1.22 trillion pesos year-on-year, totaling 13.99 trillion pesos, and representing 76% of the bank's total liabilities. Private capital deposits decreased 8% from 1.1 trillion pesos per quarter, and in the first quarter of 2026, special deposits decreased 4%, while US dollar deposits decreased 7%. Bank of Madro's market share over private As of March 2026, totaled 7.9% and changed from the previous quarter. In terms of asset quality, the bank's maximum total financial ratio reached 5.4%. In this quarter, the bank's maximum total financial ratio and their trade losses, stage 3, plus 99% loss, deteriorated 84 basis funds during the first quarter of 2026, totaling 3.64%, persisting from 8% in the whole quarter of 2025. The final non-performing ratio is affected by mandatory recalcitration of customers and reserve the bank rules, taking into consideration customers' behavior across the financial system. Bancomat's non-performing over-financial ratio, excluding mandatory recalcitration of customers, increased 109 basis funds, reaching 4.73% in the first quarter of 2026, versus 364% in the fourth quarter of 2025. Consumer portfolio non-performing loans distributed 168 basis funds, up to 6.92% from 523% in the fourth quarter of 2025, while commercial portfolio number of common loans is already 66 basic funds in the first quarter of 2026, up to 134% from 0.68% in the fourth quarter of 2025. The coverage ratio, measured as total loans under expected credit losses over non-performing loans, and the central grant rules, reached 109.79% in the first quarter of 2026, and the coverage ratio being 90%, which is similar to the coverage ratio of other private banks in North Argentina, many of them in the first quarter of 2026 would have totaled 219.7 billion pesos, representing an adjusted ROE of 15.7%. Mahamaker continued showing a strong solvency ratio with an excess capital of 4 trillion pesos, 32.4% capital adequacy ratio, and 32.4% tier 1 ratio. In addition, the balance sheet with assets remained at an adequate level, reaching 78% of its total deposits in the first quarter of 2026. The main thing is to make the best use of this excess capital. Overall, we have accounted for another positive quarter. We continue showing a solid financial position as the quarter remains under control and closing off. We keep on working to improve our artisan standards and we keep a well-atomized deposit base.

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