Macro Bank Reports 32% Net Income Decline in 2025 Driven by Surging Credit Losses and Reduced Financial Instrument Gains
Summary
Macro Bank Inc. reported a 32% decline in 2025 net income, primarily due to a 279% surge in credit loss expense and an 84% reduction in financial instrument gains, alongside a notable increase in non-performing loans.
Key Events
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Significant Net Income Decline
Net income for the fiscal year ended December 31, 2025, decreased by 32% to Ps. 290,705.8 million (U.S.$199.2 million) compared to the previous year.
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Surge in Credit Loss Expense
Credit loss expense on financial assets increased by 279%, or Ps. 396,208.8 million, driven by loan portfolio growth and deteriorating asset quality, particularly in the consumer loan segment.
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Deteriorating Asset Quality
Non-performing loans and other financings (Stage 3) as a percentage of total loans increased to 2.93% at year-end 2025, up from 1.12% in 2024.
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Sharp Drop in Financial Instrument Gains
Net gain from the measurement of financial instruments at fair value through profit or loss decreased by 84%, or Ps. 2,464.5 billion, primarily due to a reduction in public securities gains.
Analysis
Macro Bank Inc.'s 2025 annual report reveals a substantial 32% year-over-year decrease in net income, primarily due to a significant 279% increase in credit loss expense on financial assets and an 84% drop in net gains from financial instruments measured at fair value. The bank also experienced a notable deterioration in asset quality, with non-performing loans rising from 1.12% to 2.93% of total loans. While net interest income saw a healthy 44% increase and the loss on net monetary position decreased due to moderating inflation, these positives were insufficient to offset the other major headwinds. The company is undergoing an operational restructuring, including a 6% headcount reduction and 75 branch closures, to enhance efficiency in a challenging macroeconomic environment. Investors should monitor the continued impact of asset quality trends and the effectiveness of the restructuring efforts on future profitability.
At the time of this filing, BMA was trading at $82.63 on NYSE in the Finance sector, with a market capitalization of approximately $5.6B. The 52-week trading range was $38.30 to $106.15. This filing was assessed with negative market sentiment and an importance score of 9 out of 10.