Business Context and Reporting Period
Macro Bank Inc. (Banco Macro) filed a Form 6-K on March 17, 2021, reporting a relevant event regarding a Board of Directors meeting held on the same date. The filing details a proposed motion to be submitted to the Shareholders' Meeting concerning the distribution of profits and the absorption of negative retained earnings for the fiscal year ended December 31, 2020.
Key Financial Metrics
- Proposed Dividend: AR$ 15.64 per share.
- Total Distribution Amount: AR$ 10,000,425,701.12 (representing 1,564% of the capital stock).
- Capital Stock: AR$ 639,413,408.
- Optional Reserve Fund for Future Distribution of Profits (as of Dec 31, 2020): AR$ 70,446,357,678.11 (constant currency).
- Negative Retained Earnings (Year ended Dec 31, 2020): AR$ 50,602,847,744.91.
- Personal Property Tax on Business Corporations: AR$ 311,943,788.14.
The filing does not provide specific values for revenue, operating profit, cash flow, margins, debt levels, or liquidity ratios for the period.
Material Changes and Accounting Actions
The Board resolved to absorb the negative retained earnings and personal property tax through the following allocations:
- AR$ 30,268,993,306.90 absorbed by Income for the year 2020.
- AR$ 442,037.35 absorbed by the Optional Reserve Fund.
- AR$ 20,645,356,188.80 absorbed by the Optional Reserve Fund for Future Distribution of Profits.
The proposed dividend will be funded through a partial write-off of the Optional Reserve Fund for Future Distribution of Profits. The Board explicitly resolved not to propose profit capitalization or monetary adjustments to capital.
Outlook, Risks, and Contingencies
Regulatory Contingency: The distribution of the dividend is contingent upon prior authorization from the Central Bank of the Republic of Argentina. The company has indicated it will request this authorization.
Management Commentary: The Board delegated the decision regarding the method (cash, dividend in kind at market price, or a combination), timing, and terms of the dividend distribution to the Board itself, pending shareholder approval of the motion.
Investor Verification Checklist
- Confirm receipt of authorization from the Central Bank of the Republic of Argentina for the proposed dividend.
- Verify the final terms (cash vs. in-kind) and payment date once the Board exercises its delegated authority.
- Review the full 2020 annual report (Form 20-F) for detailed revenue, profit, and liquidity metrics not included in this 6-K.
- Monitor the impact of the partial write-off of the Optional Reserve Fund on future capital adequacy ratios.