BMA

Business Context and Reporting Period

This Form 6-K filing by Macro Bank Inc. (dated April 2, 2007) reports on the economic and financial consequences of the merger between Banco Macro S.A. and Nuevo Banco Suquía S.A. The data presented reflects a pro forma consolidated position as of December 31, 2006, illustrating how the combined entity would have appeared had the merger occurred on that date. The filing includes audited financial statements for both entities and an independent accountant's report on the general consolidated balance sheet of merger.

Key Financial Metrics (Pro Forma Consolidated)

Financial figures are expressed in thousands of Argentine pesos (ARS) unless otherwise noted.

Key Ratios (Pro Forma):

• Assets to Shareholders' Equity: 5.22
• Liabilities to Shareholders' Equity: 4.22
• Loans to Assets: 42%
• Loans to Deposits: 0.66
• Shareholders' Equity Liquidity: 23%

Material Changes and Merger Adjustments

The pro forma consolidation involved significant adjustments to eliminate intercompany balances and reflect the capital structure of the merged entity:

• Intercompany Eliminations: Outstanding balances between the entities totaling 341,636 (thousand pesos) and reciprocal transaction balances of 3,070 were eliminated.
• Investment Deletion: Banco Macro's permanent investment in Nuevo Banco Suquía (730,590) was deleted against the absorbed entity's equity.
• Capital Structure: The merger resulted in the issuance of 36 shares of Banco Macro to minority shareholders of Nuevo Banco Suquía. The difference between the par value and proportional equity value (120) was recorded as merger premiums.
• Debt Profile: The combined entity holds significant long-term debt, including subordinated notes totaling 462,694 (thousand pesos) and a US$50 million loan from Credit Suisse First Boston International due in 2008.

Regulatory Compliance, Risks, and Unusual Items

Regulatory Compliance (BCRA):

• Capital Requirements: The pro forma entity shows a computable equity of 1,609,748 against a total minimum capital requirement of 548,708, resulting in a payment in excess of 1,061,040.
• Liquidity: Minimum cash requirements were met in both pesos and foreign currency.
• Credit Risk: No deficiencies were found regarding credit risk concentration or transactions with related customers.
• Allowances: No deficiencies were identified regarding minimum allowances for debtor classification.

Auditor Opinions:

• Both Banco Macro and Nuevo Banco Suquía received unqualified opinions regarding BCRA rules but qualified opinions regarding the application of professional accounting principles in Argentina, primarily concerning the valuation of certain assets.

Debt Covenants and Risks:

• Dividend Restrictions: The US$50 million loan agreement with Credit Suisse First Boston International restricts dividend distributions in case of non-compliance with payment terms.
• Subordinated Notes: Interest payments on subordinated notes are non-cumulative and may be suspended if the bank fails to meet minimum capital requirements, faces liquidity assistance, or has deficiencies in regulatory reporting.

Investor Verification Checklist

• Asset Valuation: Verify the specific assets that triggered qualified audit opinions regarding valuation under Argentine accounting principles.
• Debt Covenants: Review the specific compliance triggers for the US$50 million Credit Suisse loan that could restrict dividend payouts.
• Subordinated Note Terms: Confirm the conditions under which interest payments on the US$150 million subordinated notes may be suspended or deemed non-cumulative.
• Pro Forma Limitations: Acknowledge that the financial data represents a hypothetical consolidation as of Dec 31, 2006, and does not include actual post-merger operational results or cash flows.
• Regulatory Capital: Monitor the "Payment in excess" of capital requirements to ensure continued compliance with BCRA solvency rules post-merger.