BUENOS AIRES (Dow Jones)–Argentine bank Banco Macro SA (BMA, BMA.BA) said Monday third-quarter net profit rose 17% from a year earlier as a consumer spending spree underpinned strong demand for credit.
Net profit was 314.2 million pesos ($73.7 million), or ARS0.53 per local share, up from ARS267.9 million, or ARS0.45 per share, a year earlier, the bank said in a filing with the Buenos Aires Stock Exchange.
Banco Macro’s net financial margin–the difference between what the bank pays on its deposits and earns on its loans and securities holdings–increased 28% on the year to ARS766.6 million in the quarter. Net fee income rose 53% to ARS404.2 million.
But loan loss provisions more than doubled to ARS57.7 million, while income taxes rose 53% to ARS183.6 million.
Meanwhile, administrative expenses rose 34% to ARS632.8 million due to a higher wage and employee benefits bill.
Banco Macro said its deposit base rose 24% on the year at ARS28.15 billion at the end of September, of which nearly 76% corresponded to private sector deposits.
Loans to the private sector, which represent the vast bulk of the bank’s overall credit portfolio, increased 59% on the year to ARS22.96 billion led by growth in credit card and personal loans.
-By Ken Parks, Dow Jones Newswires; 54-11-4103-6740, ken.parks@dowjones.com
Source: online.wsj.com