Stock to Target: Banco Macro SA ADR Class B (NYSE: BMA)

On Friday, Banco Macro SA ADR Class B (NYSE: BMA) stock traded volume of 245,618 shares during its last trading session as compared to its average volume of 397718 shares over the recent month. BMA ended its day with the downstream along the move of -0.88% and closed at the price of $23.6 before opening at $23.75. It has total market capitalization is $2095549053. 52-week range of the stock remained $21.41 – 77.31 while its day lowest price was $23.21 and its hit its day highest price at $23.79.

Banco Macro S.A. (BMA) reported recently its results for the third quarter ended September 30, 2019 (“3Q19”).  All figures are in Argentine pesos (Ps.)

Summary

  • The Bank’s net income totaled Ps.13.2B in 3Q19. This result was 87% higher than the Ps.7B posted in 2Q19 and 243% higher than in 3Q18. In 3Q19, the accumulated annualized return on average equity (“ROAE”) and the accumulated annualized return on average assets (“ROAA”) were 57.3% and 9.4%, respectively. In 3Q19 Recurring Net Income totaled Ps.15.5B increasing 99% or Ps.7.7B contrast with the previous quarter.
  • In 3Q19, Banco Macro’s financing to the private sector grew 10% or Ps.18.1B quarter over quarter (“QoQ”) totaling Ps.192.8B and increased 15% or Ps.24.5B year over year (“YoY”). In the quarter, growth was driven by commercial loans, among which Overdrafts stand out, with a 78% increase QoQ. In The Meantime within consumer loans, credit card loans increased 12% QoQ.
  • In 3Q19, Banco Macro’s total deposits reduced 9% or Ps.25.1B QoQ, totaling Ps.259.2B and representing 79% of the Bank’s total liabilities. Private sector deposits reduced 8% or Ps.22B QoQ.
  • Banco Macro continued showing a strong solvency ratio, with excess capital of Ps.60.0B, 26.5% regulatory capital ratio – Basel III and 18.9% Tier 1 Ratio. In addition, the Bank’s liquid assets remained at an adequate level, reaching 61% of its total deposits in 3Q19.
  • As of 3Q19, the efficiency ratio reached 32.5%, improving from the 37.6% posted in 3Q18.
  • In 3Q19, the Bank’s non-performing to total financing ratio was 1.9% and the coverage ratio reached 124.16%.

BMA return on assets ratio of the Company was 6.50% and return on equity ratio was 40.70% while its return on investment ratio was 37.80%. The stock price switched up -4.10% 20-Days Simple Moving Average, dropped -4.87% from 50-Days Simple Moving Average and fell -49.06% from 200 Days Simple Moving Average.

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