Banco Macro Shines in Q1 2026 with Record Net Income and Strong Operational Performance
The first quarter of 2026 was a period of significant growth for Banco Macro, one of Argentina's leading banks. In a recent conference call, the company's management team highlighted several key achievements that have propelled the bank to new heights.
Net income totaled ARS 139.8 billion in Q1 2026, a staggering 28% increase from the previous quarter and a whopping 131% rise compared to the same period last year. Excluding restructuring expenses, net income would have reached ARS 152.9 billion, with annualized return on equity (ROE) and return on assets (ROA) standing at 10.9% and 2.6%, respectively.
Operating income before general and administrative expenses also saw significant growth, reaching ARS 1.23 trillion in Q1 2026 - a 3% decrease from the fourth quarter of 2025 but a 16% increase year-on-year. Operating income after these expenses totaled ARS 569.8 billion, representing a 15% rise compared to the previous quarter and a 24% increase over the same period in 2025.
Net interest income was another bright spot, totaling ARS 975.2 billion - a 7% increase from Q4 2025 and a 27% rise year-on-year. This growth can be attributed to a 5% decrease in interest expense and a 21% decrease in interest income, with interest on loans accounting for 72% of total interest income.
The bank's strategy to remain short in US dollars also proved successful, generating a net gain due to the combination of a short dollar position, long futures position, and allocation of ARS generated from the sale of US dollars. Interest expense decreased by 21% or ARS 132.7 billion compared to the previous quarter and increased by 27% or ARS 104 billion over the same period in 2025.
Notably, interest on deposits accounted for 93% of the bank's total interest expense, decreasing by 22% or ARS 129.1 billion quarter-on-quarter due to a 470 basis point decrease in the average rate paid on deposits. Net interest margin, including FX effects, stood at 25.3%, higher than the 21.7% posted in Q4 2025 and the 23.2% reported in Q1 2020.
The bank's administrative expenses plus employee benefits also saw a decline of 22% or ARS 101.5 billion from the previous quarter, mainly driven by lower employee benefits - which decreased by 28% - and lower administrative expenses - which dropped by 9%. Excluding restructuring expenses, employee benefits would have decreased by 8% or ARS 18 billion year-on-year.
