Business Context and Reporting Period
This Form 6-K filing by Macro Bank Inc. (Banco Macro S.A.), dated April 9, 2021, serves as a translation of a submission to the Argentine Securities Exchange Commission (CNV). The document provides responses to information requests regarding the General and Special Shareholders' Meeting scheduled for April 30, 2021. The financial data referenced pertains primarily to the fiscal year ended December 31, 2020, with shareholding data as of March 31, 2021.
Key Financial Metrics
- Income: The computable profit for the fiscal year ended December 31, 2020, was AR$ 31,848,642,466.59 (expressed in constant currency).
- Retained Earnings: The company reported negative retained earnings of AR$ 50,602,847,744.91 for the fiscal year 2020, primarily due to the initial application of IAS 29 (Restatement of Financial Statements) and IFRS 9 (Impairment of Financial Assets).
- Reserves: The "Optional Reserve Fund for Future Profit Distributions" totaled AR$ 70,446,357,678.12 as of December 31, 2020 (constant currency).
- Dividend Proposal: The Board proposed separating AR$ 10,000,425,701.12 from the Optional Reserve Fund for a cash or in-kind dividend, subject to Central Bank authorization.
- Personnel Costs: Aggregate remuneration for the Board of Directors for 2020 was AR$ 1,579,649,159.69. The Supervisory Committee fees were AR$ 2,340,000 (nominal) plus an inflation adjustment of AR$ 412,314.10.
- Employee Count: The workforce totaled 8,489 employees in 2020, down from 8,711 in 2019 and up from 8,164 in 2018.
- Debt and Liquidity: The filing text does not provide specific values for total debt, cash flow, or liquidity ratios, though it notes the company maintains satisfactory liquidity and solvency indicators.
Material Changes and Accounting Adjustments
The most significant material change reported is the accounting restatement required by the Central Bank of the Republic of Argentina (BCRA). Starting January 1, 2020, the company applied IAS 29 to express financial statements in purchasing power currency using the national consumer price index (CPI). This transition, along with the application of IFRS 9 impairment rules, resulted in a negative retained earnings balance of approximately AR$ 50.6 billion for 2020. The company utilized existing optional reserves to absorb this negative impact.
Guidance, Outlook, and Regulatory Constraints
- Dividend Restrictions: Profit distributions by financial entities in Argentina are suspended until June 30, 2021, pursuant to BCRA Communiqué "A" 7181. Consequently, the proposed dividend cannot be paid within the standard 10-day window following shareholder approval.
- Authorization Requirements: Any dividend distribution requires prior authorization from the BCRA's Superintendencia de Entidades Financieras y Cambiarias, which will evaluate the impact of IFRS standards and specific allowances for MSME financing.
- Management Commentary: Management asserts that the dividend proposal is grounded in changes in results and the preservation of satisfactory liquidity and solvency indicators.
- Corporate Governance: The filing details the ratification of Santiago Horacio Seeber as a regular director and the proposed appointment of Delfín Jorge Ezequiel Carballo, Constanza Brito, Mario Luis Vicens, and Sebastián Palla to fill expiring terms.
Investor Verification Checklist
- Verify the status of the BCRA's suspension on profit distributions and the likelihood of authorization for the proposed AR$ 10 billion dividend after June 30, 2021.
- Confirm the impact of the IAS 29 restatement on future earnings volatility and the sustainability of the Optional Reserve Fund.
- Review the full text of the Board of Directors' minutes and the independent auditor's report for the 2020 fiscal year, available on the CNV's Financial Information Highway (AIF).
- Monitor the composition of the Board of Directors following the April 30, 2021, Shareholders' Meeting, specifically the re-election of key figures like Delfín Carballo and the appointment of Sebastián Palla.
- Assess the company's liquidity position given the regulatory constraints on capital distribution and the historical reliance on optional reserves to absorb accounting adjustments.