BUENOS AIRES, Argentina, May 12 /PRNewswire-FirstCall/ -- Banco Macro Bansud, S.A. (Buenos Aires: BSUD) ("Banco Macro" or "BMA") announced today its results for the first quarter period ended March 31, 2006 ("1Q06"). All figures are in Argentine pesos (Ps.) and have been prepared in accordance with Argentine GAAP.
HIGHLIGHTS
-- Net income of the quarter totalled Ps.73 million, up 20% compared to the Ps.61 million reported for the first quarter of 2005.
-- On March 24, 2006, Banco Macro Bansud S.A. (BMA) listed its shares and began trading on the New York Stock Exchange under the ticker symbol BMA. Banco Macro received share subscriptions for seven times the value of the offering and became the first Argentine company since 1997 to conduct an international equity offering.
-- The capitalization of the bank's shares at par value of 75 million increased the net worth by Ps.470 million.
-- In January 2006 the Bank marked to market all Government bonds that were registered at technical or present value (the lower), which generated a loss of Ps.18 million.
-- Guaranteed Loans for Ps.20 million were sold in the quarter generating earnings of Ps.5 million and also Ps.70 million of Secured Bonds with profits of Ps.0.1 million.
-- Based on the above, the exposure to the Public Sector (net of LEBACS/Nobacs) in connection with total assets has been reduced to 13%.
-- Financing to the private sector continues growing at high rates. "Core" credit to the private sector grew 13% compared to the fourth quarter of 2005 and 75% year-over-year.
-- The irregular portfolio returned to its 3% level, on a consolidated basis, with respect to the total portfolio after the creation of a financial trust with the loan portfolio of the former Banco Empresario de Tucuman (BET).
-- Nuevo Banco Suquia (NBS) has completed the Canje II, an offer by the Argentine Government to exchange deposits for bonds, generating Ps.2 million in revenue. The Secured Bonds were exchanged for bonds yet to be delivered to depositors.
-- BMA participated in the bidding process for Nuevo Banco Bisel S.A. in March 2006. On April 28, 2006 Banco Nacion Argentina pre-awarded Nuevo Banco Bisel to BMA subject to the approval of the BCRA and authorization from the Argentine antitrust authorities (CNDC).
RESULTS
Net Income for the first quarter of the year 2006 was Ps.73 million, flat when compared to the last quarter of 2005 which was Ps.75 million and up 20% compared to net income of the first quarter of 2005.
RESULTS (Consolidated w/NBS) NBS
In million Ps. I 05 IV 05 I 06 I 05 IV 05 I 06
Net Financial Income 108 142 134 33 55 63
Uncollectability charges -19 -13 -8 -12 9 -4
Net service income 53 68 71 19 23 24
142 197 197 39 86 83
Administrative expense -98 -128 -128 -31 -38 -41
43 69 69 8 49 42
Non financial income 18 29 13 12 25 7
Earnings before income tax 61 98 82 21 74 49
Income Tax -1 -23 -9 0 0 0
NET INCOME 61 75 73 21 74 49
In the first quarter of 2006, financial income grew 14% year over year.
Following the trend which began over one year ago, the share of revenue originated by the loan portfolio continued growing, reaching 50% of financial income in 1Q06. Interest income increased 13% quarter over quarter and 56% year over year, in line with the constant expansion of the bank's private sector lending (See financing to the private sector).
However, the share of revenue on Government bonds fell 19% in 1Q06 due to two important factors: 1) the marking to market of all Government bonds that were valued under Central Bank Communique "A" 3911 (technical value or present value, whichever is lower), which originated a loss of Ps.18 million and 2) the lower revenue on Lebacs in BMA of Ps.3 million. Thus, the revenue on Government bonds is down 11% this year.
Lastly, income originated under the application of CER adjustments was down 9% in the first quarter of 2006 and 24% year over year since in 1Q06 the Secured Bonds (BOGAR), as a result of the current marking to market of these bonds, are no longer adjusted under CER.
FINANCIAL INCOME (BMA)
In million Ps. I 05 % IV 05 % I 06 %
Interests for loans 38.1 31% 49.3 37% 60.3 50%
Public Bond Results 24.6 20% 37.6 28% 9.1 8%
Lebacs 19.0 31.4 28.2
Others 5.6 6.2 -19.2
Secured Loans 5.6 5% 4.3 3% 4.3 4%
Adjust CER and CVS 33.5 27% 13.6 10% 17.0 14%
BOGAR 16.7 1.4 0.6
Secured Loans 13.9 10.0 13.1
Others 2.9 2.2 3.4
Res. for participation in trusts 8.8 7% 7.0 5% 11.2 9%
Foreign Currency 1.3 1% 10.6 8% 5.7 5%
FC results -2.0
Trading 3.3
Repos 4.8 4% 0.8 1% 2.8 2%
Leasing 2.5 2% 4.0 3% 4.5 4%
Others 5.1 4% 4.9 4% 5.1 4%
Total 124.3 100% 132.1 100% 119.9 100%
FINANCIAL INCOME (NBS)
In million Ps. I 05 % IV 05 % I 06 %
Interests for loans 22.4 40% 33.9 44% 35.0 39%
Public Bond Results 4.0 7% 14.7 19% 32.2 36%
Lebacs 1.7 13.9 28.4
Others 2.2 0.8 3.8
Secured Loans 2.3 4% 2.3 3% 2.2 2%
Adjust CER and CVS 21.5 39% 17.2 22% 12.0 14%
BOGAR 6.7 4.8 0.0
Secured Loans 6.5 6.4 7.1
Compensation Bond 2.6 0.9 0.0
Loans 3.2 3.7 3.6
Others 2.5 1.4 1.2
Res. For participation in trusts 2.4 4% 0.5 1% 0.4 0%
Foreign Currency -0.2 0% 5.5 7% 3.9 4%
FC results -1.1
Trading 0.9
Repos 1.5 3% 0.4 1% 0.5 1%
Leasing 0.0 0% 0.5 1% 0.7 1%
Others 1.4 2% 1.8 2% 1.8 2%
Total 55.2 100% 76.9 100% 88.7 100%
Financial expenses for 1Q06 were practically flat compared to the previous quarter and year-over-year, in spite of the 7% increase in interest payable on deposits due to higher borrowing rates of the period.
In the case of BMA, interest on time deposits continue to be a significant portion representing 46% of total financial expenses. The average cost of deposits increased from 6.34% in 4Q05 to 6.84% in 1Q06.
In NBS, interest on time deposits were up 16% in 1Q06, but its relative share remained flat at 46%.
In turn, expenses originated due to CER-adjusted deposits were down 22% compared to the previous quarter due to a reduction in CER-adjusted deposits, which fell from more than Ps.500 million to Ps.300 million in this quarter. In BMA, these expenses were down 37% compared to the previous quarter and 56% year-over-year. In NBS, expenses originated on CER-adjusted deposits were down 22% year-over-year.
FINANCIAL EXPENSES (BMA)
In million Ps. I 05 % IV 05 % I 06 %
Interest of Time Deposits 11.5 22% 21.6 40% 22.8 46%
Other liabilities for fcial
intermediation 4.7 9% 2.8 5% 3.7 7%
Cer Adjustment 23.7 46% 16.5 31% 10.4 21%
Loan for Coverage
bond 5.6 0.0 0.0
CER time deposits 15.5 15.0 8.8
Others 2.6 1.5 1.6
Interest on saving accounts 0.6 1% 0.7 1% 1.2 2%
Interest on checking accounts 0.4 1% 0.4 1% 0.3 1%
Valuation adj. of sovereign exposure -
COM A3911 4.2 8% 0.3 1% 1.2 2%
Exchange rate difference 0.0 0% 0.0 0% 0.0 0%
Repos 1.7 3% 1.7 3% 2.2 4%
Others 4.7 9% 9.7 18% 7.9 16%
Total 51.4 100% 53.6 100% 49.8 100%
FINANCIAL EXPENSES (NBS)
In million Ps. I 05 % IV 05 % I 06 %
Interest of Time Deposits 6.4 28% 10.0 45% 11.6 46%
Other liabilities for fcial
intermediation 0.0 0% 0.0 0% 0.1 0%
Cer Adjustment 11.2 49% 7.7 35% 8.7 34%
Overdraft on BODEN 6.0 5.7 7.0
CER time deposits 2.5 1.6 1.3
Others 2.7 0.4 0.4
Interest on saving accounts 0.4 2% 0.6 3% 0.5 2%
Interest on checking accounts 0.3 1% 0.3 2% 0.3 1%
Valuation adj. of sovereign
exposure -COM A3911 0.0 0% 0.0 0% 0.0 0%
Exchange rate difference 0.0 0% 0.0 0% 0.0 0%
Public & Private Bonds 0.0 0% 0.0 0% 0.0 0%
Repos 0.0 0% 0.1 0% 0.0 0%
Others 4.4 19% 3.4 16% 4.0 16%
Total 22.7 100% 22.2 100% 25.2 100%
Net service income grew by Ps.3 million and such growth was mainly due to the increase in fees related to securities granted for Ps.1.1 million, credits for Ps.0.8 million and deposit accounts for Ps.0.7 million, all the above due to the Bank's increased activity.
Net other income was down Ps.16 million (56%) in 1Q06 (29% year-over-year) mainly due to the fees and expenses paid in connection with the new issuance of shares by BMA.
Administrative Expenses
In the first quarter of 2006, administrative expenses were flat compared to the previous quarter. The composition of administrative expenses changed, with an increase in Personnel Expenses of Ps.4 million due to the granting of bonuses to the personnel and the reduction of Ps.5 million in other administrative expenses.
On the other hand, due to the increase in service-charge income, the coverage of administrative expenses has improved by 2 percentage points, from 53% to 55%.
ADMINISTRATIVE EXPENSE
(Consolidated w/o NBS) with NBS
In MILLION AR$ I 05 IV 05 I 06 I 05 IV 05 I 06
Personnel Expenses 38 51 50 59 77 81
Administrative Expense 6 15 11 8 18 13
Depreciation & Amortization 23 24 26 31 33 34
Total Administrative Expense 67 90 87 98 128 128
Total Employees 2,825 3,052 3,060 4,705 5,054 5,051
Branches 149 151 151 251 252 253
Personnel + Adm. Expenses /
Total Employees (In thousands) 16 22 20 14 19 19
Depreciation & Amortization /
Total Branches (In M $) 0.15 0.16 0.17 0.12 0.13 0.13
ADMINISTRATIVE EXPENSE COVERAGE
(Consolidated w/o NBS) with NBS
In MILLION AR$ I 05 IV 05 I 06 I 05 IV 05 I 06
Administrative Expense 67 90 87 98 128 128
Net Fee Income 35 43 47 53 68 71
Fee Income /
Administrative Expense 51% 48% 54% 54% 53% 55%
FINANCIAL ASSETS
Private Sector Loan Portfolio
The volume of "core" credits to the private sector continues growing at very high rates, up 13% compared to the previous quarter and 75% year-over- year, netting the effects related to liquidity management policies and adding the financial trust portfolio constituted with loans granted by Banco Empresario de Tucuman acquired in December 2005.
The expansion of the Bank's lending portfolio was principally driven by medium-term loans included under the account "Others" (which grew 12% compared to the previous quarter and 76% year-over-year) and by consumer loans (which were up 23% and 99%, respectively), as in the last periods. Likewise, credit card financing was flat with its high growth rates of 14% compared to the previous quarter and 99% year-over-year. Mortgage loans stand out among the system average since they were up 56% year-over-year although they were down just 1% in the quarter. Loans backed by security agreements were up 7% compared to December 2005 and 45% year-over-year. The reduction reported under discounted instruments is due to the gradual evolution of these credit facilities towards structured products with better backing and longer terms, generally reported under "Others". This account includes mainly transactions exceeding Ps.1 million and intended for companies or corporations (91% of the amounts granted).
In March 2006, the bank created a trust with a portion of the portfolio of the former Banco Empresario de Tucumán. The creation of this trust originated profits of Ps.1 million and an improvement in the portfolio quality indexes, particularly in that of the NPL compared to the total portfolio that fell 2 percentage points when going from 5% to 3% (on a consolidated basis).
PRIVATE SECTOR LOAN PORTFOLIO
Consolidation: BMA (w/o NBS)
In million Ps. I 05 IV 05 I 06
-Overdrafts (total) 240 279 334
Overdrafts 130 179 195
AAA (liquidity administration) 110 100 139
- Discounted Instruments 279 312 220
- Consumer 254 386 480
- Credit Cards 97 163 183
- Mortgages 64 140 129
- Security Agreements 39 68 73
- Others 387 631 713
- Less: interest documented 0 0 -7
0 0 -4
- Interest and listed-price
differencies accrued
pending collection 23 20 38
- Less: Provisions -86 -208 -148
Total Loans 1,297 1,791 2,011
Financial trusts 99 288 357
leasing 70 105 109
Total credit to the private sector 1,466 2,184 2,477
Macro Personal Trust (*) 0 51 122
Total credit w/o liquidity
administration 1,356 2,084 2,338
FIN. w/o LIQ. ADM & w/ MACRO PERSONAL 1,356 2,135 2,460
w/NBS
I 05 IV 05 I 06
-Overdrafts (total) 373 433 455
Overdrafts 235 300 313
AAA (liquidity administration) 138 133 142
- Discounted Instruments 388 434 348
- Consumer 295 477 587
- Credit Cards 142 241 274
- Mortgages 194 298 295
- Security Agreements 169 230 245
- Others 494 779 869
- Less: interest documented 0 0 -11
0 0 -4
- Interest and listed-price
differencies accrued
pending collection 64 56 79
- Less: Provisions -177 -248 -190
Total Loans 1,942 2,700 2,947
Financial trusts 99 288 357
leasing 70 145 173
Total credit to the private sector 2,111 3,133 3,477
Macro Personal Trust (*) 0 51 122
Total credit w/o liquidity
administration 1,973 3,000 3,335
FIN. w/o LIQ. ADM & w/ MACRO PERSONAL 1,973 3,051 3,457
Variation Variation Particip.
I 06/I 05 I 06/IV 05 /Variat.
$ % $ % %
-Overdrafts (total) 82 22% 22 5% 6%
Overdrafts 78 33% 13 4%
AAA (liquidity administration) 4 3% 9 7%
- Discounted Instruments -40 -10% -86 -20% -3%
- Consumer 292 99% 110 23% 20%
- Credit Cards 132 93% 33 14% 9%
- Mortgages 101 52% -3 -1% 7%
- Security Agreements 76 45% 15 7% 5%
- Others 375 76% 90 12% 25%
- Less: interest documented -11 -11 -1%
-4 -4 0%
- Interest and listed-price
differences accrued
pending collection 15 23% 23 41% 1%
- Less: Provisions -13 7% 58 -23% -1%
Total Loans 1,005 52% 247 9%
Financial trusts 258 69 17%
leasing 103 28 7%
Total credit to the private sector 1,366 65% 344 11%
Macro Personal Trust (*) 122 71 8%
Total credit w/o liquidity
administration 1,362 69% 335 11% 92%
FIN. w/o LIQ. ADM & w/ MACRO PERSONAL 1,484 75% 406 13% 100%
NBS
I 05 IV 05 I 06
-Overdrafts (total) 133 153 121
Overdrafts 105 120 118
AAA (liquidity administration) 28 33 3
- Discounted Instruments 109 122 128
- Consumer 40 91 107
- Credit Cards 45 79 91
- Mortgages 130 158 165
- Security Agreements 130 163 172
- Others 108 149 156
- Less: interest documented 0 0 -4
0 0 0
- Interest and listed-price
differencies accrued
pending collection 40 36 41
- Less: Provisions -91 -40 -42
Total Loans 644 911 936
Financial trusts 0 0 0
leasing 0 40 64
Total credit to the private sector 644 951 1,000
Macro Personal Trust (*) 0 0 0
Total credit w/o liquidity
administration 616 918 997
FIN. w/o LIQ. ADM & w/ MACRO PERSONAL 616 918 997
(*) Net of holdings of participation certificates
PUBLIC SECTOR ASSETS
Public sector assets decreased 21% (Ps.773 million) compared to the previous quarter and 22% year-over year, mainly since a significant share of the bank's holdings of Government bonds were sold.
Particularly, the reduction of the Lebacs portfolio reached Ps.597 million (down 27% in the quarter although it maintains a 76% increase year-over-year) exclusively due to the Ps.556 reduction in Banco Macro's holdings (See Liquidity).
On the other hand, the increase reported under the account Other Government bonds or securities is due to the transfer of the Government bonds known as BOGAR to the account of listed securities, which were previously reported under holdings in investment accounts.
Public sector loans increased, due to a larger volume of Government security loans. The secured loan portfolio decreased as result of the sale completed in February 2006, originating a profit of Ps.5 million.
Spot and forward transactions pending settlement involving Government bonds or securities were down 20% (Ps.48 million).
NBS completed the Canje II, an offer by the Argentine Government to exchange deposits for bonds, originating Ps.2 million in revenue. Secured Bonds were exchanged for bonds yet to be delivered to depositors.
Thus, at the end of the first quarter of 2006, the bank's exposure, on a consolidated basis, to the public sector, net of Lebacs/Nobacs with respect to total assets, has declined to 13%.
PUBLIC SECTOR ASSETS
BMB BMB + NBS
In million Ps. I 05 IV 05 I 06 I 05 IV 05 I 06 Val(1)
-Repos 194 0 194 16
- B.C.R.A. Bills
in pesos (1) 881 1,358 792 931 2,240 1,643 VM
- Guaranteed Bonds 540 36 0 835 198 0 A3911
- Compensation
receivable in U$S 53 95 0 53 95 0 VT
- Compensation for BT 11 0 11 0 VT
- Other 83 98 220 96 161 308 VM
Government Securities 1,557 1,597 1,012 1,915 2,704 1,951
- Guaranteed Loans 479 399 380 714 642 629 A3911
- Provincial loans 9 3 2 82 4 629 VP
- Government securities'
loans 96 75 81 96 57 629 VM
Loans 584 477 463 892 703 629
- Compensation to
be received 245 0 0 594 0 0 VT
- Purchase of
Government bonds 300 237 198 300 246 198 VM/VT
Other receivables for
financial intermediation 545 237 198 894 246 198
- Boden purchased to
clients (Swap II) 0 0 0 0 2 0 VM
- Boden 2005, 2007, 2008
and 2012 to collect 23 21 16 23 16 26 VM
Other receivables 23 21 16 23 18 26
TOTAL ASSETS 2,709 2,332 1,689 3,724 3,671 2,898
TOTAL LIABILITIES 764 540 527 1,018 888 920
Net Exposure 1,945 1,792 1,162 2,706 2,783 1,978
TOTAL PUBLIC SECTOR
ASSETS/TOTAL ASSETS 38% 34% 25% 39% 39% 29%
TOTAL PUBLIC SECTOR
LIABILITIES / TOTAL
LIABILITIES 13% 10% 11% 12% 11% 12%
(1) Valuation method (Com. A 3911 of BCRA)
FUNDING
Deposits
Total deposits were flat in 1Q06 when compared to 4Q05, despite the reduction in public sector deposits of Ps.164 million (20%). Total deposits were up 11% year-over-year.
Deposits from the private sector were approximately flat during the quarter, with a 16% increase year-over-year. The composition of the deposit portfolio has changed, reporting a larger proportion of deposits on checking accounts (up Ps.114 million) and time deposits (up Ps.35 million) and a decline in the volume of savings accounts (down Ps.61 million) and Other deposits (down Ps.45 million).
If we compare 1Q06 figures with 1Q05 figures, the main variations year- over-year were in checking accounts with an increase of Ps.340 million (36%), time deposits with Ps.290 (10%) and Savings accounts with Ps.212 million (26%).
DEPOSITS
Consolidation: BMB w/o NBS With NBS
In million Ps. I 05 IV 05 I 06 I 05 IV 05 I 06
Government sector 799 821 657 801 823 659
Financial sector 4 4 4 7 5 6
Private sector 3,416 3,677 3,631 5,000 5,737 5,781
-Checking accounts 457 514 601 846 1,036 1,150
-Savings accounts 516 691 623 828 1,101 1,040
-Time deposits 2,220 2,274 2,237 2,968 3,222 3,257
-Other 223 198 170 357 379 334
Total 4,219 4,502 4,292 5,807 6,565 6,446
Variation Particip./
I 06/IV 05 Variat. NBS
$ % % I 05 IV 05 I 06
Government sector -164 -20% 138% 1 1 2
Financial sector 1 20% -1% 4 3 3
Private sector 44 1% -37% 1,588 2,065 2,151
-Checking accounts 114 11% -96% 389 522 549
-Savings accounts -61 -6% 51% 312 410 417
-Time deposits 35 1% -29% 748 948 1,020
-Other -45 -12% 38% 138 186 165
Total -119 -2% 100% 1,593 2,069 2,156
Within total time deposits from the private sector, corporate deposits dropped to Ps.509 million, 72% of which are peso-denominated while the balance is in foreign currency deposits. The average rate in pesos was 7.6% while the average rate in US dollars was 1.5%.
LIQUID ASSETS
Liquid assets increased Ps.126 million during 1Q06, raising the coverage ratio to 66% of total deposits.
A sharp increase of Ps.798 million in the Cash account is principally due to funds originated from the issuing of shares. Likewise, the decline in Lebac holdings (-Ps.597 million) is in part due to non renewal of corporate deposits derived from the non validation of higher interest rates.
LIQUID ASSETS (BMB + NBS)
In million Ps. I 05 IV 05 I 06
Cash 902 1,090 1,888
Guarantees for compensating chambers 123 95 97
Loans to prime firms (1) 138 133 142
Call 41 65 95
Repos 940 250 135
LEBAC 931 2,240 1,643
3,075 3,873 4,000
Coverage on total deposits 55.5% 60.3% 66.0%
SOLVENCY
The marking to market of Government bonds registered under Central Bank's Communique "A" 3911 prevents future tangible losses related to the exercise of marking all its exposure to the public sector to market.
On a consolidated basis, the marking to market of the remaining Government bonds which are not yet valued at market price leads to insignificant negative adjustments of Ps.20 million. If we add the adjustments for legal injunctions orders under the amparos of Ps.41 million and revert the pending negative goodwill (from the acquisition of Bansud) of Ps.55 million, then we reach a total adjustment of Ps.6 million.
EXPOSURE TO THE PUBLIC SECTOR - CONSOLIDATED
IV 05 I 06
In MILLION AR$ Book Value Market Value Book Value Market Value
LEBAC 2,240 2,240 1,643 1,643
Goverment securities
and loans (*) 1,032 980 631 611
Government securities
and loans priced at
market value 400 400 624 624
Government Sector
Assets 3,671 3,620 2,898 2,878
Government Sector
Liabilities 888 888 921 921
Net Exposure 2,783 2,732 1,977 1,957
Adjustments to
Market Value -51 -20
(*) In March 2006 composed only by Guaranteed Loans.
As to minimum capital requirements, the entity's RPC (Responsabilidad Patrimonial Computable or Computable Net Worth) exceeds the BCRA requirement by 336% (Ps.1,500 million/ Ps.446 million), surpassing the amounts reported for previous quarters due to the new issuance of shares.
TOTAL MIN. CAP. REQUIREMENT
In million Ps. Dec-05 Mar-06
Credit requirements 330 379
Market risk requirements 21 21
Interest rate requirements 15 46
Capital Integration 1,492 1,946
Integration Excess 1,126 1,500
Finally, the portfolio quality emphasizes the Bank's strong solvency. In this quarter, the NPL compared to the total portfolio returned to its 3% level, on a consolidated basis, after the creation of the financial trust with the loan portfolio from the former BET (which had increased the rate to 5% in the last quarter of the year 2005).
IRREGULAR PORTFOLIO
(Consolidated w/o NBS) with NBS
In millions of $ I 05 IV 05 I 06 I 05 IV 05 I 06
Commercial Portfolio 1,680 1,951 2,140 2,357 2,503 2,700
Irregular 61 106 59 111 133 84
Consumer Portfolio 492 836 953 951 1,574 1,764
Irregular 27 56 40 46 75 62
Total Portfolio 2,172 2,787 3,093 3,308 4,077 4,464
Irregular 88 162 99 157 208 146
Irregular / Total Portfolio 4% 6% 3% 5% 5% 3%
Provisions over total Portfolio 61 164 105 152 195 135
Coverage 69% 101% 106% 97% 94% 92%
I 06/I 05
Var. Abs. %
Commercial Portfolio 343 15%
Irregular -27 -24%
Consumer Portfolio 813 85%
Irregular 16 35%
Total Portfolio 1,156 35%
Irregular -11 -7%
Irregular / Total Portfolio -31%
Provisions over total Portfolio -17 -11%
Coverage -4%
CER-ADJUSTED POSITION AND FOREIGN CURRENCY POSITION
CONSOLIDATED CER POSITION (Ps.) Balances
ASSETS
Government Securities 0
Loans 817
Guaranteed Loans 628
Private Sector Loans 96
Other Loans 92
Debtors for asset sells (BET) 9
Total Assets adjustable by CER 825
LIABILITIES
Deposits 303
Other liabilities for
financial intermediation 262
Subordinated debt 6
Total Liabilities adjustable by CER 571
NET CER POSITION 254
FOREIGN CURRENCY POSITION
Consolidated w/NBS
Assets
Cash 818
Government Securities 211
Loans 583
Other loans for financial intermediation 337
Investment in other companies 104
Other loans 11
Total 2,063
Liabilities 0
Deposits 1,333
Other liabilities for
financial intermediation 441
Other liabilities 5
Provisions 6
Total 1,784
NET POSITION 278
RECENT EVENTS
-- BMA acquired 75% of the capital stock and votes of Banco de Tucumán S.A. The chart below summarizes both the Balance Sheet and the Income Statement as of March 31, 2006.
BALANCE SHEET I 06
ASSETS 768
Cash 145
Government Securities 246
Loans 196
Other receivables from financial intermediation 127
Leasing 3
Investment in other companies 1
Other loans 8
Bank premises and equipment 27
Other assets 1
Intangible assets 15
LIABILITIES 717
Deposits 622
Other liabilities for financial intermediation 88
Other liabilities 6
Provisions 0
Equity 52
INCOME STATEMENT (*)
Financial Income 57
Financial Expense 20
Uncollectability Charges 10
Service Income 19
Service Expense 4
Administrative Expense 40
Other Income 7
Other expense 5
Results 4
(*) Consider that BT year ended June 2006, these results are cumulative to March 2006.
During first quarter 2006, the net income was Ps.1.7 M.
-- On April 28 the bank was informed that Banco Nacion Argentina had pre- awarded Nuevo Banco Bisel to BMA. The entity participated in a bidding process held during the month of March, submitting the best offer.
-- Such offer consisted of: (i) the presentation of a business plan, (ii) the bidder's commitment to maintain the personnel, (iii) the capitalization of the NBB by Ps.830 million.
-- On May 9, 2006 the bank entered into the relevant sale and purchase agreement, subject to the approval from the BCRA and prior authorization from the Argentine antitrust authorities (Comision Nacional de Defensa de la Competencia).
-- NBB is an institution holding a strong presence in the central region of the Republic of Argentina (especially in the province of Santa Fe), where it has 158 branch offices. At December 2005, NBB's assets totaled Ps.1,766 million, total loans from the private sector were Ps.527 million and it had total deposits of Ps.1,172 million. The shareholders' equity (without adjustment) account totaled Ps.133 million.
-- On April 28, 2006 the Shareholders' Meeting of the Bank resolved to distribute cash dividends for Ps.68.4 million. Such dividends shall be available to shareholders of record as of May 19, 2006.
QUARTERLY CONFERENCE CALL
A conference call to discuss this press release will be held on May 15, 2006 from 3pm to 3:45 pm BA time (2pm NY time), with the presence of Jorge Pablo Brito (Chief Executive Officer), Guillermo Goldberg (Commercial Manager) and the Investor relations team from BMA. Dial in information:
(800) 500-3170 (U.S. Participants)
(719) 457-2733 (From outside the U.S.)
Conference ID: 6214226
Disclaimer
This press release includes forward-looking statements. We have based these forward-looking statements largely on our current beliefs, expectations and projections about future events and financial trends affecting our business. Many important factors could cause our actual results to differ substantially from those anticipated in our forward-looking statements, including, among other things: inflation; changes in interest rates and the cost of deposits; government regulation; adverse legal or regulatory disputes or proceedings; credit and other risks of lending, such as increases in defaults by borrowers; fluctuations and declines in the value of Argentine public debt; competition in banking, financial services and related; deterioration in regional and national business and economic conditions in Argentina; and fluctuations in the exchange rate of the peso.
The words "believe," "may," "will," "aim," "estimate," "continue," "anticipate," "intend," "expect" and similar words are intended to identify forward-looking statements. Forward-looking statements include information concerning our possible or assumed future results of operations, business strategies, financing plans, competitive position, industry environment, potential growth opportunities, the effects of future regulation and the effects of competition. Forward-looking statements speak only as of the date they were made, and we undertake no obligation to update publicly or to revise any forward-looking statements after we distribute this prospectus because of new information, future events or other factors. In light of the risks and uncertainties described above, the forward-looking events and circumstances discussed in this press release might not occur and are not guarantees of future performance.
INVESTOR RELATIONS CONTACT:
Marcos Brito, Investor Relations
Tel: +5411-5222-6759
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